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Andrews Sykes Group (ASY)

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Friday 27 September, 2013

Andrews Sykes Group

Half Yearly Report

RNS Number : 0582P
Andrews Sykes Group PLC
27 September 2013
 



Andrews Sykes Group plc

 

Interim financial statements 2013

 

Summary of results

for the six months ended 30 June 2013

 


(Unaudited)

 


6 months ended

 30 June 2013

6 months ended

30 June 2012*


£000

£000




Revenue from continuing operations

29,774

28,570

EBITDA** from continuing operations

8,383

8,235

Operating profit

6,427

6,396

Profit for the financial period

5,208

4,894

Basic earnings per share (pence)

12.32p

11.57p

Dividends declared per equity share (pence)

8.90p

0.00p

Net funds

20,674

12,642


                

                

*       Restated following the implementation of IAS 19 (revised), see note 2.

**     Earnings before interest, taxation, depreciation, profit on the sale of property, plant and equipment, amortisation and non-recurring items.

 

For further information please contact:

 

Andrews Sykes Group plc

Kevin Ford

 

+44 (0) 1902 328700

 



Altium (Nominated adviser)

Paul Lines

Adam Sivner

+44 (0) 845 505 4343



Arden Partners plc (Broker)

Adrian Trimmings

+44 (0) 20 7614 5920

Chairman's statement

 

Overview

The group's revenue for the six months ended 30 June 2013 was £29.8 million, an increase of £1.2 million (4.2%) compared with last half year's figure of £28.6 million. Operating profit increased very slightly to £6.4 million for the period under review, the positive impact from the increase in revenue being largely offset by a combination of a change in mix across our business sectors and start-up costs. However, the first half of 2012 benefited from a significant one-off contract for the supply of equipment in connection with the Olympic Games. The group continues to demonstrate its ability to return a satisfactory result, achieving an operating profit this period at approximately the same level as last in the face of both unfavourable weather and economic trading conditions.

The group continues to generate strong cash flows, net cash inflow from operating activities being £6.0 million in the six months ended 30 June 2013 compared with £4.6 million in the same period in 2012. As at 30 June 2013 the group had net funds of £20.7 million, an increase of £5.1 million compared with 31 December 2012 and an increase of over £8.0 million compared with the position as at 30 June 2012. Taking all these factors into account, on 18 June 2013 the Board declared an interim dividend of 8.9 pence per ordinary share which resulted in a payment to shareholders of £3.8 million on 24 July 2013.

Management continue to be mindful of the need to maintain the operational structure of the business and the group has invested £2.5 million on new hire fleet assets, plant and equipment in the six months under review. In addition we have continued our policy of pursuing organic growth within our market sectors and the associated overhead start-up costs have been expensed as incurred. Continuing investment in both our existing businesses and the ongoing development of new operations and income streams will ensure that we remain in a strong position and will safeguard profitability into the future.

Operations review

Our main hire and sales business in the UK again faced a number of challenges and opportunities during the first half of 2013. The improvements in the pumping business reported in last year's annual report continued into the current period and made a significant contribution to the results for the first half year.  Non-weather dependent contracts continue to be sought and investment will continue to be made into this core business. Our heating division also performed well with revenue being slightly ahead of last year mainly due to the colder weather at the beginning of the year continuing longer this period than last. However, the early summer weather was very poor and conditions remained un-seasonably cold until the middle of June when the warmer weather finally arrived. Overall the operating profit of our main UK business was approximately £0.1 million better than the first half last year.

Our subsidiary in the Netherlands had a difficult first half of the year also being adversely affected by the late arrival of the warmer summer weather in the middle of June; this had an almost direct impact on operating profit which ended £0.4 million lower than the same period in 2012. Our Belgian subsidiary continued to trade successfully.

In June 2011 we opened a new operation in Italy, Nolo Climat, and following additional investment in both staff and hire fleet in the first half of 2013, we remain optimistic for further growth in this business in the future.

In December 2012 we opened a new subsidiary in France that commenced trading in January 2013. We are also currently establishing another new subsidiary in the French-speaking region of Switzerland to become fully operational by the end of 2013. 

Our UK air conditioning installation business benefited last year from the one-off contract for the supply of equipment for the Olympic Games. This year, despite the poor start to the season and lacking the Olympics contract, we have produced a result very close to last year's.

Khansaheb Sykes, our long established business based in the UAE, continued to benefit from improved market conditions in the region. Both of its main trading locations in Dubai and Abu Dhabi produced strong results in the first half of the year from its traditional dewatering, sewage and general pump hire activities. Overall revenue and operating profit increased in the first half of 2013 compared with the same period in 2012.

 

Profit for the financial period and earnings per share

Profit before tax was very slightly ahead of the first half of 2012 at £6.7 million.

The tax charge reduced by £0.3 million from £1.8 million* last half year to £1.5 million in the six months ended 30 June 2013. The group's effective tax rate fell from 26.3% to 22.0% mainly due to (i) a 1.25% reduction in the UK annualised corporation tax rate to 23.25% and (ii) an increase in the proportion of profits earned in lower tax rate overseas countries in the first half of 2013. A reconciliation of the theoretical corporation tax charge based on the accounts profits multiplied by 23.25% and the actual tax charge is given in note 4 of these interim accounts.

The profit for the financial period increased by £0.3 million from £4.9 million* in the first half of 2012 to £5.2 million in the current period. Basic earnings per share increased by 6.5% from 11.57 pence* to 12.32 pence reflecting both the above increase in profit and the group's share buyback programme in earlier years. No shares have been purchased for cancellation in the current half year.

Dividends

On 18 June 2013 the Board declared an interim dividend of £3.8 million, equal to 8.9 pence per ordinary share, and this was paid to shareholders on the register as at 28 June 2013 on 24 July 2013. This interim dividend has been charged against reserves during the six months ended 30 June 2013 and included on the balance sheet as a current liability as at 30 June 2013.

The Board continues to adopt the policy of returning value to shareholders whenever possible and accordingly the decision regarding a further interim dividend will be taken later in the year in the light of profitability and cash resources.

Renewal of bank loan facilities

As advised in the 2012 Annual Report and Financial Statements, a new bank loan of £8 million was taken out on 30 April 2013 which was used to finance the repayment of the previous loan on the same day. The group is currently in compliance with the loan covenants and forecasts indicate that this will continue to be the case for the foreseeable future. Accordingly the loan has been split between current and non-current liabilities in accordance with the agreed repayment profile.

Outlook

Trading in the third quarter to date has been encouraging. During July and August the UK and Northern Europe saw sustained periods of warm weather conditions which benefited our air conditioning business. Both the UK pumping business and the Middle East business sector have continued to trade ahead of last year and these factors will therefore have a positive impact on the results for the second half of 2013.

However, it must be remembered that the results for 2012 had a one-off benefit of a significant contract in connection with the Olympic and Paralympic Games and therefore this will distort any comparison with 2013. In addition the weather for the final quarter of 2013 is currently an unknown factor. Overall, however, the Board is cautiously anticipating a reasonable performance for the remainder of 2013.

 

JG Murray

Chairman

 

 


26 September 2013

 

 * Restated due to the implementation of IAS 19 (revised), see note 2.


Consolidated income statement

for the 6 months ended 30 June 2013 (unaudited)

 

 

6 months ended
30 June
2013

6 months ended
30 June
2012*

12 months ended
31 December
2012*

Continuing operations

£000

£000

£000


 

 

 

Revenue

29,774

28,570

58,380

Cost of sales

(13,324)

(12,930)

(25,455)


             

             

             

Gross profit

16,450

15,640

32,925


 

 

 

Distribution costs

(5,256)

(4,927)

(10,088)

Administrative expenses

(4,767)

(4,317)

(8,616)


             

             

             

Operating profit

6,427

6,396

14,221


 

 

 

EBITDA**

8,383

8,235

17,825

Depreciation and impairment losses

(2,201)

(2,019)

(4,006)

Profit on sale of plant and equipment

245

180

402


             

             

             

Operating profit

6,427

6,396

14,221


             

             

             


 

 

 

Income from trade investments

-

265

592

Finance income

860

850

1,723

Finance costs

(813)

(851)

(1,701)

Intercompany foreign exchange gains and losses

206

(16)

(81)


             

             

             

Profit before taxation

6,680

6,644

14,754


 

 

 

Taxation

(1,472)

(1,750)

(3,685)


             

             

             

Profit for the financial period

5,208

4,894

11,069


             

             

             

There were no discontinued operations in any of the above periods.

 

Earnings per share from continuing operations


 

 

 

Basic and diluted (pence)

12.32p

11.57p

26.18p


 

 

 

Dividends declared per equity share (pence)

8.90p

-

7.10p

*    Restated due to the implementation of IAS 19 (revised), see note 2.

**  Earnings before interest, taxation, depreciation, profit on the sale of property plant and equipment, amortisation and non-recurring items

 



Consolidated balance sheet

as at 30 June 2013 (unaudited)

 


30 June
2013

30 June
2012

31 December
2012


£000

£000

£000

Non-current assets




Property, plant and equipment

15,923

14,374

15,522

Lease prepayments

54

55

55

Trade investments

164

164

164

Deferred tax asset

383

1,107

609

Retirement benefit pension surplus

2,906

632

1,809


             

             

             


19,430

16,332

18,159


             

             

             

Current assets




Stocks

4,280

3,678

3,197

Trade and other receivables

14,283

14,878

15,248

Cash and cash equivalents

29,067

21,166

24,108


             

             

             


47,630

39,722

42,553


             

             

             

Current liabilities




Trade and other payables

(9,923)

(8,791)

(9,881)

Ordinary dividend

(3,761)

-

-

Current tax liabilities

(1,429)

(1,482)

(1,481)

Overseas tax (denominated in Euros)

(75)

(88)

(11)

Bank loans

(980)

(8,000)

(8,000)

Obligations under finance leases

(169)

(129)

(124)

Provisions

(13)

(13)

(13)

Derivative financial instruments

-

(11)

-


             

             

             


(16,350)

(18,514)`

(19,510)


             

             

             

Net current assets

31,280

21,208

23,043


             

             

             

Total assets less current liabilities

50,710

37,540

41,202


             

             

             

Non-current liabilities




Bank loans

(6,945)

-

-

Obligations under finance leases

(299)

(384)

(342)

Provisions

(15)

(28)

(21)


             

             

             


(7,259)

(412)

(363)


             

             

             

Net assets

43,451

37,128

40,839


             

             

             

Equity




Called up share capital

423

423

423

Share premium

13

13

13

Retained earnings

39,763

34,060

37,825

Translation reserve

2,997

2,377

2,323

Other reserves

245

245

245


             

             

             

Surplus attributable to equity holders of the parent

43,441

37,118

40,829





Minority interest

10

10

10


             

             

             

Total equity

43,451

37,128

40,839


             

             

             

 



Consolidated cash flow statement

for the six months ended 30 June 2013 (unaudited)

 

 

6 months ended
30 June
2013

6 months ended
30 June
2012*

12 months ended
31 December
2012*

 

£000

£000

£000

Cash flows from operating activities

 

 

 

Cash generated from operations

7,560

6,604

16,602

Interest paid

(194)

(170)

(326)

Net UK corporation tax paid

(1,101)

(1,378)

(2,543)

Net withholding tax paid

-

(76)

(140)

Overseas tax paid

(284)

(380)

(825)


             

             

             

Net cash inflow from operating activities

5,981

4,600

12,768


             

             

             

Investing activities

 

 

 

Dividends received from trade investments

-

265

592

Sale of plant and equipment

431

252

559

Purchase of property, plant and equipment

(2,096)

(1,902)

(4,715)

Interest received

111

90

193


             

             

             

Net cash outflow from investing activities

(1,554)

(1,295)

(3,371)


             

             

             

Financing activities

 

 

 

Loan repayments

(8,000)

(6,000)

(6,000)

New loans raised

8,000

-

-

Finance lease capital repayments

(102)

(84)

(132)

Equity dividends paid

-

-

(3,001)

Purchase of own shares

-

(826)

(825)


             

             

             

Net cash outflow from financing activities

(102)

(6,910)

(9,958)


             

             

             

Net increase/(decrease) in cash and cash equivalents

4,325

(3,605)

(561)


 

 

 

Cash and cash equivalents at beginning of period

24,108

24,986

24,986

Effect of foreign exchange rate changes

634

(215)

(317)


             

             

             

Cash and cash equivalents at end of period

29,067

21,166

24,108

 

                

                

                

Reconciliation of net cash flow to movement in net funds in the

  period

 

 

 


 

 

 

Net increase/(decrease) in cash and cash equivalents

4,325

(3,605)

(561)

Cash outflow from the decrease in debt

102

6,084

6,132

Non-cash movements re new finance leases

(104)

-

-

Non-cash movements in the fair value of derivative instruments

-

13

23

Non-cash movements re loan finance costs

75

-

-


             

             

             

Increase in net funds during the period

4,398

2,492

5,594


 

 

 

Opening net funds at the beginning of period

15,642

10,365

10,365

Effect of foreign exchange rate changes

634

(215)

(317)


             

             

             

Closing net funds at end of period

20,674

12,642

15,642

 

                

                

                

 



Consolidated statement of comprehensive total income (CSOCTI)

for the six months ended 30 June 2013 (unaudited)

 

 

6 months ended
30 June
2013

6 months ended
30 June
2012*

12 months ended
31 December
2012*

 

£000

£000

£000

 

 

 

 

Profit for the financial period

5,208

4,894

11,069


             

             

             

Other comprehensive income

 

 

 

Currency translation differences on foreign currency net investments

674

(281)

(335)

Defined benefit plan actuarial gains and losses

638

(1,409)

(667)

Deferred tax on other comprehensive income

(147)

355

204


             

             

             

Other comprehensive income/(charges) for the period net of tax

1,165

(1,335)

(798)


             

             

             

Total comprehensive income for the period

6,373

3,559

10,271

 

                

                

                

 

*    Restated due to the implementation of IAS 19 (revised), see note 2.

 

 



Notes to the consolidated interim financial statements

for the six months ended 30 June 2013

 

1              General information

Basis of preparation

These interim financial statements have been prepared in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as adopted by the European Union and with the Companies Act 2006.

The information for the 12 months ended 31 December 2012 does not constitute the group's statutory accounts for 2012 as defined in Section 434 of the Companies Act 2006. Statutory accounts for 2012 have been delivered to the Registrar of Companies. The Auditor's report on those accounts was unqualified and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. These interim financial statements, which were approved by the Board of Directors on 26 September 2013, have not been audited or reviewed by the auditors.

The interim financial statement has been prepared using the historical cost basis of accounting except for:

(i)      properties held at the date of transition to IFRS which are stated at deemed cost;

(ii)     assets held for sale which are stated at the lower of fair value less anticipated disposal costs and carrying value; and

(iii)    derivative financial instruments (including embedded derivatives) which are valued at fair value.

Functional and presentational currency

The financial statements are presented in pounds Sterling because that is the functional currency of the primary economic environment in which the group operates.

2              Accounting policies

With the exception of the adoption of IAS 19 (revised), which became mandatory for periods commencing on or after 1 January 2013, these interim financial statements have been prepared on a consistent basis and in accordance with the accounting policies set out in the group's Annual Report and Financial Statements 2012.

IAS 19 (revised) had the following impact on the group's results:

·      Pension scheme administration costs and the costs of managing the plan assets have been reported as an operating expense, within administration expenses, and not as a deduction from the expected return on assets within finance income.

·      Interest income included within finance income is no longer based on the expected return from the pension scheme's assets but has been restricted to the discount rate as used to discount the pension scheme's liabilities.

The results for the prior periods have been restated on a consistent basis with the current period and the following changes have been made:

 

(Unaudited)

 

6 months ended

 30 June 2012

12 months ended

31 December
 2012

 

£000

£000

Increase in administration expenses

52

91

Decrease in interest income included within finance income

3

27

Decrease in actuarial losses recognised in the statement of comprehensive total income

55

118

 

                

                

In addition the tax charge in the income statement has been reduced by £13,000 for the 6 months ended 30 June 2012 (£29,000 for the 12 months ended 31 December 2012) and the tax charge in the Consolidated Statement of Comprehensive Total Income has been increased by the same amount as a result of the above changes.

 

2              Accounting policies (continued)

There has not been any impact on the net pension scheme surplus or the consolidated retained earnings as a result of the implementation of IAS 19 (revised). The remaining changes required by IAS 19 (revised), including the abolition of the "corridor" method of accounting for certain actuarial gains and losses and changes in the treatment of interest on service costs did not have any impact on the group's results.

3              Revenue

An analysis of the group's revenue is as follows:

 

6 months ended

 30 June 2013

6 months ended

30 June 2012

12 months ended

31 December

 2012

 

£000

£000

£000

Continuing operations

 

 

 

Hire

24,379

21,469

47,453

Sales

3,451

4,789

6,083

Installations

1,944

2,312

4,844


             

             

             

Group consolidated revenue from the sale of goods and provision of services

 

29,774

 

28,570

 

58,380

 

                

                

                

4              Taxation

 

6 months ended

 30 June 2013

6 months ended

30 June 2012*

12 months ended

31 December

 2012*

 

£000

£000

£000

Current tax

 

 

 

UK corporation tax

1,048

1,172

2,580

Adjustments in respect of prior periods

-

-

(245)


             

             

             


1,048

1,172

2,335

Overseas tax

344

444

813

Adjustments to overseas tax in respect of prior periods

-

49

42

Withholding tax

-

76

140


             

             

             

Total current tax charge

1,392

1,741

3,330


             

             

             

Deferred tax

 

 

 

Deferred tax on the origination and reversal of temporary differences

80

9

162

Adjustments in respect of prior periods

-

-

193


             

             

             

Total deferred tax charge

80

9

355


             

             

             

Total tax charge for the financial period attributable to

  continuing operations

 

1,472

 

1,750

 

3,685

 

                

                

                

 

The tax charge for the financial period can be reconciled to the profit before tax per the income statement multiplied by the standard effective annualised corporation tax rate in the UK of 23.25% (June 2012 and December 2012: 24.5%) as follows:

 

6 months ended

 30 June 2013

6 months ended

30 June 2012*

12 months ended

31 December

 2012*

 

£000

£000

£000

 

 

 

 

Profit before taxation from continuing and total operations

6,680

6,644

14,754


             

             

             

Tax at the UK effective annualised corporation tax rate of 23.25%

  (June 2012 and December 2012: 24.5%)

 

1,553

 

1,628

 

3,615


 

 

 

Effects of:

 

 

 

Expenses not deductible for tax purposes

61

58

122

Movement in overseas trading losses

51

35

71

Effect of different tax rates of subsidiaries operating abroad

(193)

(78)

(217)

Withholding tax

-

76

140

Non-taxable income from other participating interests

-

(65)

(145)

Effect of change in rate of corporation tax

-

47

109

Adjustments to tax charge in respect of previous periods

-

49

(10)


             

             

             

Total tax charge for the financial period

1,472

1,750

3,685

 

                

                

                

The total effective tax charge for the financial period represents the best estimate of the weighted average annual effective tax rate expected for the full financial year applying tax rates that have been substantively enacted by the balance sheet date. Accordingly UK corporation tax has been provided at 23.25%; the reduction to 23% for the tax year ending 31 March 2014 having been substantially enacted on 2 July 2012.  UK deferred tax has been provided at 23% being the rate substantially enacted at the balance sheet date at which the timing differences are expected to reverse.

In accordance with IAS 12 no account has been taken in these interim financial statements of the 2012 Finance Act that was substantively enacted on 2 July 2013 as this was after the balance sheet date. This Act provided for the further reduction in the rate of UK corporation tax from 23% to 21% for the tax year commencing 1 April 2014 and from 21% to 20% for the tax year commencing 1 April 2015. It is estimated that if these rate changes had been enacted by the balance sheet date it would have had the effect of reducing the deferred tax asset recognised at that date by approximately £30,000 and they will reduce the group's future corporation tax charge accordingly.

 

*  Restated due to the implementation of IAS 19 (revised) see note 2.

 

5              Earnings per share

Basic earnings per share

The basic figures have been calculated by reference to the weighted average number of ordinary shares in issue and the earnings as set out below. There are no discontinued operations in any period.

 

6 months ended 30 June 2013

 

Continuing

earnings

Number of

shares


£000

 


 

 

Basic earnings/weighted average number of shares

5,208

42,262,082

 

             

              

Basic earnings per ordinary share (pence)

12.32p

 

 

             

 

 

 

6 months ended 30 June 2012*

 

Continuing

earnings

Number of

shares


£000

 


 

 

Basic earnings/weighted average number of shares

4,894

42,297,624

 

             

              

Basic earnings per ordinary share (pence)

11.57p

 

 

             

 

 

 

12 months ended

 31 December 2012*

 

Continuing

earnings

Number of

shares


£000

 


 

 

Basic earnings/weighted average number of shares

11,069

42,279,853

 

             

              

Basic earnings per ordinary share (pence)

26.18p

 

 

             

 

Diluted earnings per share

There were no dilutive instruments outstanding at 30 June 2013 or either of the comparative periods and, therefore, there is no difference in the basic and diluted earnings per share for any of these periods.  There were no discontinued operations in any period.

 

*  Restated due to the implementation of IAS 19 (revised) see note 2.

 

6              Dividend payments

The directors declared the following interim dividend during the 6 months ended 30 June 2013:

 

 

6 months ended 30 June 2013

 

Pence per share

Total dividend
declared


 

£000


 

 

Interim dividend declared on 18 June 2013 and paid to shareholders on the register
  as at 28 June 2013 on 24 July 2013

 

8.90p

 

3,761

 

             

              

The above interim dividend has been charged against reserves during the 6 months ended 30 June 2013 and included on the balance sheet as a current liability as at 30 June 2013.  The amount was paid on 24 July 2013.

The directors declared the following interim dividend during the 12 month period ended 31 December 2012:

 

 

12 months ended 31 December 2012

 

Pence per share

Total dividend
declared


 

£000


 

 

Interim dividend declared on 29 October 2012 and paid to shareholders on the register
  as at 9 November 2012 on 3 December 2012

 

7.10p

 

3,001

 

             

              

The above interim dividend was charged against reserves and paid during the 12 months ended 31 December 2012.

The directors did not declare or pay any interim dividends during the 6 months ended 30 June 2012.

7              Retirement benefit obligations - defined benefit pension scheme

The group closed the UK group defined benefit pension scheme to future accrual as at 29 December 2002. The assets of the defined benefit pension scheme continue to be held in a separate trustee administered fund.

As at 30 June 2013 the group had a net defined benefit pension scheme surplus, calculated in accordance with IAS 19 using the assumptions as set out below, of £2,906,000 ( June 2012: £632,000; 31 December 2012: £1,809,000). The asset has been recognised in the financial statements as the directors are satisfied that it is recoverable in accordance with IFRIC 14.

Following the triennial recalculation of the funding deficit as at 31 December 2010, and taking into account the significant market movements since that date, a revised schedule of contributions and recovery plan has been agreed with the pension scheme trustees. Based on this schedule of contributions, which is effective from 1 January 2011, the best estimate of the employer contributions to be paid during the year commencing 1 January 2013 is £960,000.

Assumptions used to calculate the scheme surplus

The last full actuarial valuation was carried out as at 31 December 2010. A qualified independent actuary has updated the results of this valuation to calculate the position as disclosed below.

The major assumptions used in this valuation to determine the present value of the scheme's defined benefit obligation were as follows:

 

 30 June

 2013

30 June

 2012

31 December

 2012

 

%

%

%

Rate of increase in:

 

 

 

  Pensionable salaries

n/a

n/a

n/a

  Pensions in payment

3.20

2.80

2.90

Discount rate applied to scheme liabilities

4.60

4.40

4.30

Inflation assumption:

 

 

 

  RPI

3.30

2.80

3.00

  CPI for the first six years

2.30

1.80

2.00

  CPI after the first six years

2.30

1.80

2.00

 

                

                

                

From 1 January 2011, the government amended the basis for statutory increases to deferred pensions and pensions in payment. Such increases are now based on inflation measured by the Consumer Price Index (CPI) rather than the Retail Price Index (RPI). Having reviewed the scheme rules and considered the impact of the change on this pension scheme, the directors consider that future increases to (i) all deferred pensions and (ii) Guaranteed Minimum Pensions accrued between 6 April 1988 and 5 April 1997 and currently in payment will be based on CPI rather than RPI. Accordingly, this assumption was adopted as at 31 December 2010 and for all subsequent periods.

Assumptions regarding future mortality experience are set based on advice in accordance with published statistics. The mortality table used at 30 June 2013 is 110% S1NA CMI2012 (30 June 2012 and 31 December 2012: 110% S1NA CMI2011).

The assumed average life expectancy in years of a pensioner retiring at the age of 65 given by the above tables is as follows:

 

 30 June

 2013

30 June

 2012

31 December

 2012


 

 

 

Male, current age 45

22.7 years

22.6 years

22.6 years

Female, current age 45

24.0 years

23.9 years

23.9 years

 

                

                

                

Valuations

The fair value of the scheme's assets, which are not intended to be realised in the short term and may be subject to significant change before they are realised, and the present value of the scheme's liabilities, which are derived from cash flow projections over long periods and are inherently uncertain, were as follows:

 

 

 30 June

 2013

30 June

 2012

31 December

 2012

 

£000

£000

£000

 

 

 

 

Total fair value of plan assets

34,946

32,200

34,195

Present value of defined benefit funded obligation calculated in

  accordance with stated assumptions

 

(32,040)

 

(31,568)

 

(32,386)


             

             

             

Surplus in the scheme calculated in accordance with stated

  assumptions recognised in the balance sheet

 

2,906

 

632

 

1,809

 

                

                

                

 

The movement in the fair value of the scheme's assets during the period were as follows:

 

 

 30 June

 2013

30 June

 2012*

31 December

 2012*

 

£000

£000

£000

 

 

 

 

Fair value of plan assets at the start of the period

34,195

31,447

31,447

Expected return on plan assets

726

743

1,499

Actuarial gains recognised in the CSOCTI

244

320

1,794

Employer contributions - normal

480

420

840

Benefits paid

(634)

(678)

(1,294)

Scheme administration expenses

(65)

(52)

(91)


             

             

             

Fair value of plan assets at the end of the period

34,946

32,200

34,195

 

                

                

                

The movement in the present value of the defined benefit obligation during the period was as follows:

 

 

 30 June

 2013

30 June

 2012

31 December

 2012

 

£000

£000

£000

 

 

 

 

Opening present value of defined benefit funded obligation calculated

  in accordance with stated assumptions

 

(32,386)

 

(29,818)

 

(29,818)

Interest on defined benefit obligation

(682)

(699)

(1,401)

Actuarial gain/(loss) recognised in the CSOCTI calculated in

  accordance with stated assumptions

 

394

 

(1,729)

 

(2,461)

Benefits paid

634

678

1,294


             

             

             

Closing present value of defined benefit funded obligation calculated

  in accordance with stated assumptions

 

(32,040)

 

(31,568)

 

(32,386)

 

                

                

                

Amounts recognised in the income statement

The amounts (charged)/credited in the income statement were:

 

 30 June

 2013

30 June

 2012*

31 December

 2012*

 

£000

£000

£000

 

 

 

 

Expected return on pension scheme assets credited within finance

  income

 

726

 

743

 

1,499

Interest on pension scheme liabilities charged within finance costs

(682)

(699)

(1,401)


             

             

             

Net pension interest credit

44

44

98

Scheme expenses charged in administration expenses

(65)

(52)

(91)


             

             

             

Net pension (charge)/credit in the income statement

(21)

(8)

7

 

                

                

                

 

Actuarial gains and losses recognised in the consolidated statement of comprehensive total income (CSOCTI)

The amounts credited/(charged) in the CSOCTI were:

 

 30 June

 2013

30 June

 2012*

31 December

 2012*

 

£000

£000

£000

 

 

 

 

Actual return less expected return on scheme assets

244

320

1,794

Experience gains and losses arising on plan obligation

(6)

(437)

(278)

Changes in demographic and financial assumptions underlying the

  present value of plan obligations

 

400

 

(1,292)

(2,183)


             

             

             

Actuarial gain/(loss) calculated in accordance with stated assumptions

  recognised in the CSOCTI

 

638

 

(1,409)

 

(667)

 

                

                

                

*  Restated due to the implementation of IAS 19 (revised), see note 2.

8              Called up share capital

 

 30 June

 2013

30 June

 2012

31 December

 2012

 

£000

£000

£000

Issued and fully paid:

 

 

 

42,262,082 ordinary shares of one pence each (June 2012 and December 2012: 42,262,082 ordinary shares of one pence each)

 

423

 

423

 

423

 

                

                

                

The company did not buy back any shares for cancellation during the 6 months ended 30 June 2013 (June 2012 and December 2012: 426,506 shares for a total consideration of £814,934).  The company did not issue any shares in the period or either of the comparative periods.  No share options were granted, forfeited or expired during either the current or comparative financial periods.  There were no share options outstanding at any period end.

The company has one class of ordinary shares which carry no right to fixed income.

9              Cash generated from operations

 

 6 months ended 30 June 2013

6 months ended
30 June 2012*

12 months ended
31 December
 2012*

 

£000

£000

£000

 

 

 

 

Profit for the period attributable to equity shareholders

5,208

4,894

11,069

Adjustments for:

 

 

 

  Taxation charge

1,472

1,750

3,685

  Finance costs

813

851

1,701

  Finance income

(860)

(850)

(1,723)

  Inter-company foreign exchange gains and losses

(206)

16

81

  Income from trade investments

-

(265)

(592)

  Profit on the sale of property, plant and equipment

(245)

(180)

(402)

  Depreciation

2,201

2,019

4,006

 Excess of normal pension contributions compared with service cost

(415)

(368)

(749)


             

             

             

Cash generated from operations before movements in working capital

7,968

7,867

17,076


 

 

 

Movement in stocks

(1,419)

(301)

(246)

Movement in trade and other receivables

988

(96)

(462)

Movement in trade and other payables

29

(860)

247

Movement in provisions

(6)

(6)

(13)


             

             

             

Cash generated from operations

7,560

6,604

16,602

 

                

                

                

* Restated due to the implementation of IAS 19 (revised) see note 2.

10           Analysis of net funds

 

 30 June

 2013

30 June

 2012

31 December

 2012

 

£000

£000

£000

 

 

 

 

Cash and cash equivalents per cash flow statement

29,067

21,166

24,108


             

             

             


 

 

 

Bank loans

(7,925)

(8,000)

(8,000)

Obligations under finance leases

(468)

(513)

(466)

Derivative financial instruments

-

(11)

-


             

             

             

Gross debt

(8,393)

(8,524)

(8,466)


             

             

             

Net funds

20,674

12,642

15,642

 

                

                

                

11           Distribution of interim financial statements

Following a change in regulations in 2008, the company is no longer required to circulate this half year report to shareholders. This enables us to reduce costs associated with printing and mailing and to minimise the impact of these activities on the environment. A copy of the interim financial statements is available on the company's website, www.andrews-sykes.com.

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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