TIDMASY
RNS Number : 6622S
Andrews Sykes Group PLC
26 September 2014
Andrews Sykes Group plc
Interim Financial Statements
For the six months ended 30 June 2014
Summary of results
for the six months ended 30 June 2014
(Unaudited)
6 months 6 months
ended ended
30 June 2014 30 June 2013
GBP000 GBP000
Revenue from continuing operations 26,759 29,774
EBITDA* from continuing operations 6,495 8,383
Operating profit 4,349 6,427
Profit for the financial period 3,206 5,208
Basic earnings per share (pence) 7.59p 12.32p
Interim dividends declared per equity share
(pence) 11.90p 8.90p
Prior year final dividend declared per equity
share (pence) 11.90p -
Net funds 15,291 20,674
* 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 (NOMAD)
Paul Lines / Adam Sivner +44 (0) 845 505 4307
Arden Partners (Broker)
Steve Douglas +44 (0) 20 7614 5900
Chairman's Statement
Overview
During the first half of 2014, the group faced a number of
challenges which had a detrimental impact on our trading
performance for the period. Overall, the group's revenue for the
six months ended 30 June 2014 was GBP26.8 million, a decrease of
GBP3 million compared with the same period last year. As a
consequence operating profit fell by GBP2.1 million from GBP6.4
million in the first half of 2013 to GBP4.3 million for the six
months ended 30 June 2014.
Despite the above disappointing news, the group continues to be
profitable and cash generative. Cash generated from operations was
GBP4.2 million (2013: GBP7.6 million) and although net funds were
reduced by GBP3.8 million from GBP19.1 million as at 31 December
2013 to GBP15.3 million as at 30 June 2014 this was after paying
the 2013 final dividend of 11.90 pence per share, or GBP5 million
in total, during the period.
Management continue to safeguard the operational structure of
the business. Cash spent on new plant and equipment, primarily hire
fleet assets, amounted to GBP1.3 million and a further GBP0.4
million from stock was also added to the hire fleet. We have
continued our policy of pursuing organic growth within our market
sectors and start up costs of the new businesses discussed in the
2013 Strategic Report continue to be expensed as incurred. A new
depot in Paris has been opened in the second half of 2014 and
continuing investment in both our existing core 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 segment in the UK and Europe
faced a number of challenges as well as opportunities during the
first half of 2014. In the UK the wet weather during the period
stimulated the demand for our pump hire business which returned a
strong operating performance. Non-weather dependent contracts
continue to be sought with some new contracts being won in the
period. Demand for our air conditioning products started earlier
than last year with a spell of warm weather in the early summer.
Unfortunately all of these positive factors were more than offset
by the decline in the heating business which was severely affected
by the unseasonably mild winter conditions.
The main factor affecting the segment's result for this period
was the poor performance of our trading in the Netherlands. As with
the UK, the Netherlands had an unseasonably mild winter with a
consequential impact on the heating business. The effect was made
worse by a decline in the construction sector in the Netherlands,
particularly the housing market, which is one of our principal
trading sectors. The performance of our Belgian and Italian
operations were also affected by the mild weather, albeit to a
lesser extent.
Our newly established businesses in France, Switzerland and
Luxembourg continue to trade in line with our expectations.
Andrews Air Conditioning & Refrigeration, our UK air
conditioning installation business, produced an operating profit
that was GBP0.1 million below the level achieved last year. The UK
installation market is becoming very price competitive which is not
sustainable in the long term. We continue to offer a first class
service at a fair price which we believe to be the best long term
strategy.
Khansaheb Sykes, our long established business based in the UAE,
had a slow start to the year. A number of contracts were delayed
but June saw some improvements in both Dubai and Abu Dhabi in our
traditional dewatering, sewage and general pump hire activities.
The climate rental division that was started in 2012 continues to
make a positive contribution but had mixed fortunes in the period.
Overall, the operating profit of Khansaheb Sykes was GBP0.4 million
lower than the same period last year.
Profit for the financial period and Earnings per Share
Profit before tax was GBP4.1 million (2013: GBP6.7 million)
reflecting both the above GBP2.1 million decrease in operating
profit and an increase in net finance costs of GBP0.5 million
compared with the same period in 2013. Net finance costs increased
primarily due to an inter company foreign exchange loss of GBP0.3
million, compared with a gain of GBP0.2 million in 2013, due to a
strengthening of Sterling compared with both the Euro and other
currencies.
The tax charge reduced by GBP0.6 million from GBP1.5 million
last half year to GBP0.9 million for the six months ended 30 June
2014. The group's effective tax rate increased slightly from 22.0%
last half year to 22.7% this period mainly due to a reduction in
profits earned in low tax regions overseas and unrelieved overseas
losses. A reconciliation of the theoretical corporation tax charge
based on the accounts profit multiplied by the UK annualised
corporation tax rate of 21.5% and the actual tax charge is given in
note 4 of these interim accounts.
Profit after tax was GBP3.2 million (2013: GBP5.2 million).
There were no share buy backs in either period so this fall in
profits had a direct impact on earnings per share which fell from
12.32 pence for the first half of 2013 to 7.59 pence for the period
under review.
Dividends
The directors did not declare or pay any interim dividends
during the six months ended 30 June 2014.
The final dividend of 11.90 pence per ordinary share for the
year ended 31 December 2013 was approved by members at the AGM held
on 17 June 2014. Accordingly on 19 June 2014 the company made a
total dividend payment of GBP5,029,000 which was paid to
shareholders on the register as at 30 May 2014.
The board continues to adopt the policy of returning value to
shareholders whenever possible. Despite the downturn in trading,
the group remains profitable, cash generative and financially
strong. Accordingly the board has decided to declare an interim
dividend for 2014 of 11.90 pence per share which in total amounts
to GBP5,029,000. This will be paid on 2 December 2014 to
shareholders on the register as at 7 November 2014. The shares will
go ex-dividend on 6 November 2014.
Outlook
Trading in the third quarter to date has been disappointing.
Although in both the UK and Northern Europe warmer weather arrived
earlier than last year, it was not sustained and did not reach the
temperature peaks of 2013. Whilst both June and July were warm,
August was disappointingly cool and wet thereby affecting the
performance of our air conditioning hire business and this is
continuing to have an impact into September.
Activity in the Middle East was, as expected, quiet in July due
to Ramadan but the anticipated upturn in the last five months of
the year has so far failed to materialise.
The weather for the final quarter of 2014 is currently an
unknown factor and may significantly affect the outcome for the
year. The board remains cautiously optimistic that the group will
return a satisfactory performance for the remainder of 2014.
JG Murray
Chairman
25 September 2014
Consolidated income statement
for the 6 months ended 30 June 2014 (unaudited)
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 26,759 29,774 61,072
Cost of sales (12,116) (13,324) (25,318)
Gross profit 14,643 16,450 35,754
Distribution costs (5,061) (5,256) (10,994)
Administrative expenses (5,233) (4,767) (10,077)
Operating profit 4,349 6,427 14,683
EBITDA* 6,495 8,383 18,592
Depreciation and impairment losses (2,301) (2,201) (4,459)
Profit on the sale of plant and equipment 155 245 550
------------------------ ---------------------- ---------------------
Operating profit 4,349 6,427 14,683
------------------------ ---------------------- ---------------------
Income from trade investments - - 194
Finance income** 178 178 373
Finance costs** (93) (131) (193)
Inter company foreign exchange gains
and losses (286) 206 (93)
------------------------ ---------------------- ---------------------
Profit before taxation 4,148 6,680 14,964
Taxation (942) (1,472) (3,446)
Profit for the financial period 3,206 5,208 11,518
------------------------ ---------------------- ---------------------
There were no discontinued operations in either
of the above periods
Earnings per share from continuing operations
Basic and diluted (pence) 7.59p 12.32p 27.25p
Interim dividends declared per equity
share (pence) 11.90p 8.90p 17.80p
Prior year final dividend declared 11.90p - -
per equity share (pence)
* Earnings Before Interest, Taxation, Depreciation, profit on
the sale of property, plant and equipment, Amortisation and
non-
recurring items.
** Restated to include pension scheme interest received and paid
on a net basis in accordance with IAS19 (R).
Consolidated balance sheet
as at 30 June 2014 (unaudited)
30 June 30 June 31 December
2014 2013 2013
----------------- ----------------- -----------------
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 15,524 15,923 16,432
Lease prepayments 52 54 53
Trade investments 164 164 164
Deferred tax asset 627 383 618
Retirement benefit pension
surplus 1,681 2,906 1,204
----------------- ----------------- -----------------
18,048 19,430 18,471
----------------- ----------------- -----------------
Current assets
Stocks 4,592 4,280 3,231
Trade and other receivables 14,772 14,283 14,631
Overseas tax (denominated
in Euros) 547 - 280
Cash and cash equivalents 22,559 29,067 27,417
----------------- ----------------- -----------------
42,470 47,630 45,559
----------------- ----------------- -----------------
Current liabilities
Trade and other payables (10,355) (9,923) (10,271)
Ordinary dividend - (3,761) -
Current tax liabilities (1,308) (1,429) (1,599)
Overseas tax (denominated - (75) -
in Euros)
Bank loans (980) (980) (980)
Obligations under finance
leases (114) (169) (114)
Provisions (13) (13) (13)
----------------- ----------------- -----------------
(12,770) (16,350) (12,977)
----------------- ----------------- -----------------
Net current assets 29,700 31,280 32,582
Total assets less current
liabilities 47,748 50,710 51,053
Non-current liabilities
Bank loans (5,965) (6,945) (6,955)
Obligations under finance
leases (209) (299) (255)
Provisions (2) (15) (8)
----------------- ----------------- -----------------
(6,176) (7,259) (7,218)
----------------- ----------------- -----------------
Net assets 41,572 43,451 43,835
----------------- ----------------- -----------------
Equity
Called-up share capital 423 423 423
Share premium 13 13 13
Retained earnings 38,828 39,763 40,684
Translation reserve 2,053 2,997 2,460
Other reserves 245 245 245
Surplus attributable to equity
holders of the parent 41,562 43,441 43,825
Minority interest 10 10 10
Total equity 41,572 43,451 43,835
----------------- ----------------- -----------------
Consolidated cash flow statement
for the six months ended 30 June 2014 (unaudited)
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Cash generated from
operations 4,205 7,560 17,689
Interest paid (86) (194) (243)
Net UK corporation tax paid (1,220) (1,101) (2,340)
Withholding tax paid - - (39)
Overseas tax paid (291) (284) (851)
Net cash flow from operating
activities 2,608 5,981 14,216
------------------------------ ------------------------------- -----------------------------
Investing activities
Dividends received from
trade
investments - - 194
Sale of property, plant and
equipment 252 431 706
Purchase of property, plant
and equipment (1,256) (2,096) (4,392)
Interest received 126 111 281
------------------------------ -------------------------------
Net cash outflow from
investing
activities (878) (1,554) (3,211)
------------------------------ ------------------------------- -----------------------------
Financing activities
Loan repayments (1,000) (8,000) (8,000)
New loans raised - 8,000 8,000
Finance lease capital
repayments (46) (102) (97)
Equity dividends paid (5,029) - (7,523)
------------------------------ -------------------------------
Net cash outflow from
financing
activities (6,075) (102) (7,620)
------------------------------ ------------------------------- -----------------------------
Net (decrease) / increase in
cash and cash equivalents (4,345) 4,325 3,385
Cash and cash equivalents at
the beginning of the period 27,417 24,108 24,108
Effect of foreign exchange
rate
changes (513) 634 (76)
Cash and cash equivalents at
end of the period 22,559 29,067 27,417
------------------------------ ------------------------------- -----------------------------
Reconciliation of net cash flow to movement in net funds
in the period
Net (decrease) / increase in
cash and cash equivalents (4,345) 4,325 3,385
Net cash outflow from the
decrease
in debt 1,046 102 97
Non-cash movement re new - (104) -
finance
leases
Non-cash movements in
respect
of costs of raising loan
finance (10) 75 65
------------------------------- -------------------------- -----------------------------
(Decrease) / increase in net
funds during the period (3,309) 4,398 3,547
Opening net funds at the
beginning
of the period 19,113 15,642 15,642
Effect of foreign exchange
rate
changes (513) 634 (76)
------------------------------- -------------------------- -----------------------------
Closing net funds at the end
of the period 15,291 20,674 19,113
------------------------------- -------------------------- -----------------------------
Consolidated statement of comprehensive total income
(CSOCTI)
for the six months ended 30 June 2014 (unaudited)
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP000 GBP000 GBP000
Profit for the financial period 3,206 5,208 11,518
Other comprehensive (charges) / income:
Items that may be reclassified to
profit and loss:
Currency translation differences on
foreign currency net investments (406) 674 137
Items that will never be reclassified
to profit and loss:
Remeasurement of defined benefit liabilities
and assets (41) 638 (1,524)
Related deferred tax 8 (147) 388
Other comprehensive (charges) / income
for the period net of tax (439) 1,165 (999)
Total comprehensive income for the
period 2,767 6,373 10,519
Notes to the consolidated interim financial statements
for the six months ended 30 June 2014
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 2013 does
not constitute the group's statutory accounts for 2013 as defined
in Section 434 of the Companies Act 2006. Statutory accounts for
2013 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 25 September 2014, 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 disclosure of pension scheme interest
on a net basis in accordance with IAS 19 (revised), 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 2013.
3 Revenue
An analysis of the group's revenue is as follows:
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Continuing operations
Hire 21,501 24,379 50,175
Sales 3,232 3,451 7,035
Installations 2,026 1,944 3,862
Group consolidated revenue from the
sale of goods and provision
of services 26,759 29,774 61,072
-------- -------- ------------
4 Taxation
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Current tax
UK corporation tax at 21.5% (30 June
2013 and 31 December 2013: 23.25%) 929 1,048 2,567
Adjustments in respect of prior periods - - (109)
--------------------------- -------- ----------------------------
929 1,048 2,458
Overseas tax 14 344 592
Adjustments to overseas tax in respect
of prior periods - - (22)
Withholding tax - - 39
Total current tax charge 943 1,392 3,067
--------------------------- -------- ----------------------------
Deferred tax
Deferred tax on the origination and
reversal of temporary differences (1) 80 329
Adjustments in respect of prior periods - - 50
Total deferred tax charge (1) 80 379
--------------------------- -------- ----------------------------
Total tax charge for the financial
period attributable to
continuing operations 942 1,472 3,446
--------------------------- -------- ----------------------------
The tax charge for the financial period can be reconciled to the
profit before tax per the income statement multiplied by the
effective standard annualised corporation tax rate in the UK of
21.5% (30 June 2013 and 31 December 2013: 23.25%) as follows:
6 months 6 months 12 months
ended ended ended
30 June 2014 30 June 31 December
2013 2013
GBP'000 GBP'000 GBP'000
Profit before taxation from
continuing
and total operations 4,148 6,680 14,964
---------------------------- -------------------------- -----------------------
Tax at the UK effective annualised
corporation tax rate of 21.5%
(30 June 2013 and 31 December
2013:
23.25%) 892 1,553 3,479
Effects of:
Expenses not deductible for tax
purposes 53 61 119
Movement in overseas trading losses 106 51 146
Effect of different tax rates of
subsidiaries
operating abroad (109) (193) (339)
Withholding tax - - 39
Non-taxable income from other
participating
interests - - (45)
Effect of change in rate of
corporation
tax - - 128
Adjustments to tax charge in
respect
of previous periods - - (81)
Total tax charge for the financial
period 942 1,472 3,446
---------------------------- -------------------------- -----------------------
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 21.5%;
the reduction to 21% for the tax year ending 31 March 2015 having
been substantially enacted on 2 July 2013. UK deferred tax has been
provided at 20% being the rate substantially enacted at the balance
sheet date at which the timing differences are expected to
reverse.
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
2014
------------------------
Continuing Number of
earnings Shares
GBP000
Basic earnings/weighted average number
of shares 3,206 42,262,082
-----------
Basic earnings per ordinary share (pence) 7.59p
6 months ended 30 June
2013
------------------------
Continuing Number of
earnings shares
GBP000
Basic earnings/weighted average number
of shares 5,208 42,262,082
-----------
Basic earnings per ordinary share (pence) 12.32p
12 months ended 31 December
2013
---------------------------------
Continuing Number of
earnings shares
GBP000
Basic earnings/weighted average number
of shares 11,518 42,262,082
----------------
Basic earnings per ordinary share (pence) 27.25p
Diluted earnings per share
There were no dilutive instruments outstanding at 30 June 2014
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.
6 Dividend payments
The directors did not declare or pay any interim dividends
during the 6 months ended 30 June 2014. The following final
dividend for the year ended 31 December 2013 was approved by
members at the AGM held on 17 June 2014 and was paid to members of
the register on 30 May 2014 on 19 June 2014:
Paid in the 6 months ended
30 June 2014
-------------------------------
Pence per share Total dividend
paid
GBP000
Final dividend for the year ended 31 December
2013 paid to members on the register on
30 May 2014 on 19 June 2014 11.90p 5,029
--------------- --------------
The above dividend was charged against reserves during the 6
months ended 30 June 2014.
On 25 September 2014 the directors declared an interim dividend
of 11.90 pence per ordinary share which in total amounts to
GBP5,029,000. This will be paid on 2 December 2014 to shareholders
on the register on 7 November 2014 and will be charged against
reserves in the second half of 2014.
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
GBP000
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 was 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 and paid the following interim dividends
during the 12 month period ended 31 December 2013:
12 months ended 31 December
2013
-------------------------------
Pence per share Total dividend
paid
GBP000
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
Interim dividend declared on 28 October
2013 and paid to shareholders on the register
as at 8 November 2013 on 3 December 2013 8.90p 3,762
--------------- --------------
17.80p 7,523
--------------- --------------
The above interim dividends were charged against reserves during
the 12 months ended 31 December 2013.
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 2014 the group had a net defined benefit pension
scheme surplus, calculated in accordance with IAS 19 (revised)
using the assumptions as set out below, of GBP1,681,000 (30 June
2013: GBP2,906,000; 31 December 2013: GBP1,204,000). 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 2013 a revised schedule of contributions and
recovery plan has been agreed with the pension scheme trustees in
June 2014. Based on this schedule of contributions, which is
effective from 1 January 2014, the best estimate of the employer
contributions to be paid during the year commencing 1 January 2014
is GBP905,000. Thereafter, the group does not expect to make any
further contributions to the pension scheme, other than a
contribution towards expenses that has been capped at GBP120,000
per annum, until the next funding valuation as at 31 December 2016
is agreed with the pension scheme trustees.
Assumptions used to calculate the scheme surplus
A qualified independent actuary has updated the results of the
December 2010 full actuarial valuation to calculate the surplus 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 30 June 31 December
2014 2013 2013
Rate of increase in pensionable N/A N/A N/A
salaries
Rate of increase in pensions in 3.30% 3.20% 3.40%
payment
Discount rate applied to scheme 4.20% 4.60% 4.40%
liabilities
Inflation assumption - RPI 3.40% 3.30% 3.50%
Inflation assumption - CPI for 2.40% 2.30% 2.50%
the first 6 years
Inflation assumption - CPI after 2.40% 2.30% 2.50%
the first 6 years
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 2014 is 110% S1NA CMI2013 (30 June 2013: 110%
S1NA CMI2012; 31 December 2013: 110% S1NA CMI2013).
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 30 June 31 December
2014 2013 2013
Male, current age 45 22.7 years 22.7 years 22.7 years
Female, current age 45 24.0 years 24.0 years 24.0 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 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Total fair value of plan assets
Present value of defined benefit funded 36,786 34,946 35,707
obligation calculated in accordance
with stated assumptions (35,105) (32,040) (34,503)
---------- ---------- ------------
Surplus in the scheme calculated in
accordance with stated assumptions
recognised in the balance sheet 1,681 2,906 1,204
---------- ---------- ------------
The movement in the fair value of the scheme's assets during the
period was as follows:
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Fair value of plan assets at the start
of the period 35,707 34,195 34,195
Expected return on pension scheme assets 775 726 1,455
Actual return less expected return
on pension scheme assets 545 244 908
Employer contributions - normal 540 480 960
Benefits paid (727) (634) ( 1,672)
Administration expenses charged in
the income statement (54) (65) (139)
Fair value of plan assets at the end
of the period 36,786 34,946 35,707
-------------------- ---------------- --------------------
The movement in the present value of the defined benefit
obligation during the period was as follows:
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Present value of defined benefit funded
at the beginning of the period (34,503) (32,386) (32,386)
Interest on defined benefit obligation (743) (682) (1,357)
Actuarial (loss) / gain recognised
in the CSOCTI calculated in
accordance with stated assumptions (586) 394 (2,432)
Benefits paid 727 634 1,672
Closing present value of defined benefit
funded obligation calculated
in accordance with stated assumptions (35,105) (32,040) (34,503)
----------------------- ------------------- ----------------------
Amounts recognised in the income statement
The amounts credited / (charged) in the income statement
were:
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Expected return on pension scheme
assets 775 726 1,455
Interest on pension scheme liabilities (743) (682) (1,357)
------------------------ ---------------------- ----------------------
Net pension interest credit included
within finance income 32 44 98
Scheme administration expenses (54) (65) (139)
Net pension charge in the income statement (22) (21) (41)
------------------------ ---------------------- ----------------------
Actuarial gains and losses recognised in the consolidated
statement of comprehensive total income (CSOCTI)
The amounts credited / (charged) in the CSOCTI were:
30 June 30 June 31 December
2014 2013 2013
GBP000 GBP000 GBP000
Actual return less expected return
on pension scheme assets 545 244 908
Experience gains and losses arising
on plan obligation (3) (6) (72)
Changes in demographic and financial
assumptions underlying the
present value of plan obligations (583) 400 (2,360)
---------------------- ----------------- ---------------------
Actuarial (loss)/gain calculated in
accordance with stated assumptions
recognised in the CSOCTI (41) 638 (1,524)
---------------------- ----------------- ---------------------
8 Called up share capital
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Issued and fully paid:
42,262,082 ordinary shares of one
pence each (30 June 2013 and 31 December
2013: 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 2014 or either of the comparative
periods. 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 any of the periods and 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 6 months 12 months
ended ended ended
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Profit for the period attributable
to equity shareholders 3,206 5,208 11,518
Adjustments for:
Taxation charge 942 1,472 3,446
Finance costs* 93 131 193
Finance income* (178) (178) (373)
Inter-company foreign exchange gains
and losses 286 (206) 93
Income from trade investments - - (194)
Profit on the sale of property,
plant and equipment (155) (245) (550)
Depreciation 2,301 2,201 4,459
Excess of normal pension contributions
compared with service cost
and administration expenses (486) (415) (821)
-------- -------- ------------
Cash generated from operations before
movements in working capital 6,009 7,968 17,771
Movement in stocks (1,764) (1,419) (1,059)
Movement in trade and other receivables (122) 988 613
Movement in trade and other payables 88 29 377
Movement in provisions (6) (6) (13)
Cash generated from operations 4,205 7,560 17,689
-------- -------- ------------
* Restated to include pension scheme interest received and paid
on a net basis in accordance with IAS 19 (R).
10 Analysis of net funds
30 June 30 June 31 December
2014 2013 2013
GBP'000 GBP'000 GBP'000
Cash and cash equivalents per cash
flow statement 22,559 29,067 27,417
------------------------ --------------------------- ---------------------
Bank loans (6,945) (7,925) (7,935)
Obligations under finance leases (323) (468) (369)
------------------------ --------------------------- ---------------------
Gross debt (7,268) (8,393) (8,304)
------------------------ --------------------------- ---------------------
Net funds 15,291 20,674 19,113
------------------------ --------------------------- ---------------------
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
END
IR MMGZLKKDGDZM
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