TIDMASY
RNS Number : 1396L
Andrews Sykes Group PLC
29 September 2016
Andrews Sykes Group plc
Interim Financial Statements 2016
Summary of results
for the six months ended 30 June 2016
(Unaudited)
6 months 6 months
ended ended
30 June 30 June
2016 2015
GBP'000 GBP'000
Revenue from continuing operations 30,287 28,240
EBITDA* from continuing operations 8,799 7,293
Operating profit 6,395 4,973
Inter-company foreign exchange gains and losses 1,062 (355)
Profit for the financial period 6,195 3,732
Basic earnings per share (pence) 14.66p 8.83p
Interim dividends declared per equity share
(pence) 11.90p 11.90p
Net funds 15,392 13,505
======== ========
* 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
Paul Wood, Group Managing Director
Andy Phillips, Group Chief Financial Officer +44 (0)1902 328700
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GCA Altium (NOMAD)
Paul Lines
Adam Sivner +44 (0)845 505 4300
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Arden Partners plc (Broker)
Steve Douglas +44 (0) 20 7614 5920
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Chairman's Statement
Overview
The group produced a successful result for the first half of
2016, once again the winter months created some good opportunities
for our heating and boiler hire products. Overall, the group's
revenue for the six months ended 30 June 2016 was GBP30.3 million,
an increase of GBP2.1 million compared with the same period last
year. As a consequence operating profit increased by GBP1.4 million
from GBP5.0 million in the first half of 2015 to GBP6.4 million for
the six months ended 30 June 2016.
The group continues to be profitable and cash generative. Cash
generated from operations was GBP7.1 million (2015: GBP5.0 million)
and net funds increased by GBP0.8 million from GBP14.6 million as
at 31 December 2015 to GBP15.4 million as at 30 June 2016 this was
after paying the 2015 final dividend of 11.9 pence per share, or
GBP5.0 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 GBP2.2 million and a further GBP0.7
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
previous Strategic Reports continue to be expensed as incurred.
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
continued to expand during first half of 2016. Our pumping activity
has increased when compared to 2015 and, despite a mild winter, our
heating products have maintained revenue levels. Demand for our air
conditioning products was in line with previous years.
Our operations across the Benelux region have continued a strong
recovery with growth on last year's performance being recorded. Our
recently 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 of
GBP0.1 million.
Khansaheb Sykes, our long established business based in the UAE,
had a strong start to the year, with improvements in our
traditional pump hire activities. The climate rental division also
continues to make a positive contribution. Overall, the operating
profit of Khansaheb Sykes was GBP0.3 million ahead of the same
period last year.
Profit for the financial period and Earnings per Share
Profit before tax was GBP7.5 million (2015: GBP4.7 million)
reflecting both the above GBP1.4 million increase in operating
profit and a significant improvement in net finance income and
costs, also of GBP1.4 million, compared with the same period in
2015. This improvement was primarily due to a net inter-company
foreign exchange gain of GBP1.1 million compared with a loss of
GBP0.3 million in 2015 which in turn was mainly due to the
weakening of Sterling.
The total tax charge increased by GBP0.4 million from GBP0.9
million for the six months ended 30 June 2015 to GBP1.3 million for
the current six month period. The effective tax rate decreased from
20.2% for the six months ended 30 June 2015 to 17.7% in the current
period. The rate for the current period is less than the standard
UK corporation tax rate of 20% which is mainly due to (i) the
utilisation of off balance sheet overseas tax losses due, in part,
to overseas foreign exchange gains and (ii) the effect of profits
being made in lower tax regions overseas. A reconciliation of the
theoretical corporation tax charge based on the accounts profit
multiplied by the UK annualised corporation tax rate of 20% and the
actual tax charge is given in note 4 of these interim accounts.
Profit after tax was GBP6.2 million (2015: GBP3.7 million) and
consequently the basic earnings per share increased by 5.83 pence,
or 66%, from 8.83 pence for the first half of 2015 to 14.66 pence
for the period under review. There were no share buy-backs in the
period.
Dividends
The final dividend of 11.90 pence per ordinary share for the
year ended 31 December 2015 was approved by members at the AGM held
on 21 June 2016. Accordingly on 24 June 2016 the company made a
total dividend payment of GBP5,029,000 which was paid to
shareholders on the register as at 27 May 2016.
The board continues to adopt the policy of returning value to
shareholders whenever possible. The group remains profitable, cash
generative and financially strong. Accordingly the board has
decided to declare an interim dividend for 2016 of 11.90 pence per
share which in total amounts to GBP5,029,000. This will be paid on
2 November 2016 to shareholders on the register as at 7 October
2016. The shares will go ex-dividend on 6 October 2016.
Bank loan agreement
During the period, and in accordance with the agreed repayment
profile, the group repaid the third annual instalment of GBP1
million that was due for payment on 30 April 2016. The remaining
loan balance of GBP5 million is due for repayment in full on 30
April 2017 and therefore this amount has been included within
current liabilities as at 30 June 2016. The group intends to
finance this loan repayment by a new loan of the same amount and
management have already commenced negotiations with the banks to
secure this position.
Outlook
Trading in the third quarter to date has continued to be
positive. After a slow start to the summer Europe has experienced
above average temperatures during September which continue to
stimulate high demand for air conditioning products. Once again
activity in the Middle East has remained consistent through the
summer period, with trading levels ahead of last year in both
Sharjah and Abu Dhabi.
The board remains cautiously optimistic that the group will
return an improved performance for the full year.
JG Murray 28 September 2016
Chairman
Consolidated income statement
for the 6 months ended 30 June 2016 (unaudited)
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 30,287 28,240 60,058
Cost of sales (12,692) (12,602) (25,284)
Gross profit 17,595 15,638 34,774
Distribution costs (5,772) (5,343) (10,828)
Administrative expenses (5,428) (5,322) (10,738)
Operating profit 6,395 4,973 13,208
EBITDA* 8,799 7,293 17,701
Depreciation and impairment losses (2,702) (2,531) (4,959)
Profit on the sale of plant and equipment 298 211 466
--------- --------- ---------------
Operating profit 6,395 4,973 13,208
--------- --------- ---------------
Finance income 145 145 280
Finance costs (73) (84) (164)
Intercompany foreign exchange gains
and losses 1,062 (355) 43
Profit before taxation 7,529 4,679 13,367
Taxation (1,334) (947) (2,567)
Profit for the financial period 6,195 3,732 10,800
--------- --------- ---------------
There were no discontinued operations in either
of the above periods
Earnings per share from continuing operations
Basic and diluted (pence) 14.66p 8.83p 25.55p
Dividends paid during the period
per equity share (pence) 11.90p 11.90p 23.80p
Proposed dividend per equity share
(pence) 11.90p 11.90p 11.90p
* 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 2016 (unaudited)
30 June 30 June 31 December
2016 2015 2015
---------- ----------- ------------
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 18,604 16,187 17,750
Lease prepayments 49 51 50
Trade investments 164 164 164
Deferred tax asset 482 495 282
Retirement benefit pension
surplus 1,512 1,695 2,443
---------- ----------- ------------
20,811 18,592 20,689
---------- ----------- ------------
Current assets
Stocks 5,709 5,002 4,199
Trade and other receivables 16,052 15,031 16,584
Overseas tax (denominated
in Euros) - 195 17
Cash and cash equivalents 20,590 19,697 20,715
---------- ----------- ------------
42,351 39,925 41,515
---------- ----------- ------------
Current liabilities
Trade and other payables (11,414) (10,716) (11,090)
Current tax liabilities (1,345) (1,149) (1,306)
Overseas tax (denominated
in euros) (44) - -
Bank loans (4,985) (980) (980)
Obligations under finance
leases (129) (101) (101)
Provisions - (2) -
---------- ----------- ------------
(17,917) (12,948) (13,477)
---------- ----------- ------------
Net current assets 24,434 26,977 28,038
Total assets less current
liabilities 45,245 45,569 48,727
Non-current liabilities
Bank loans - (4,985) (4,995)
Obligations under finance
leases (84) (126) (81)
(84) (5,111) (5,076)
---------- ----------- ------------
Net assets 45,161 40,458 43,651
---------- ----------- ------------
Equity
Called-up share capital 423 423 423
Share premium 13 13 13
Retained earnings 41,096 38,331 40,987
Translation reserve 3,374 1,436 1,973
Other reserves 245 245 245
Surplus attributable to equity
holders of the parent 45,151 40,448 43,641
Minority interest 10 10 10
Total equity 45,161 40,458 43,651
---------- ----------- ------------
Consolidated cash flow statement
for the six months ended 30 June 2016 (unaudited)
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 7,111 4,996 14,623
Interest paid (66) (86) (155)
Net UK corporation tax paid (941) (951) (1,881)
Overseas tax paid (263) (190) (463)
Net cash inflow from operating
activities 5,841 3,769 12,124
----------- -------------- ----------------
Investing activities
Sale of property, plant and
equipment 415 335 711
Purchase of property, plant
and equipment (2,237) (1,711) (5,234)
Interest received 124 100 197
----------- --------------
Net cash outflow from investing
activities (1,698) (1,276) (4,326)
----------- -------------- ----------------
Financing activities
Loan repayments (1,000) (1,000) (1,000)
Finance lease capital repayments (53) (49) (94)
Equity dividends paid (5,029) (5,029) (10,058)
----------- --------------
Net cash outflow from financing
activities (6,082) (6,078) (11,152)
----------- -------------- ----------------
Net decrease in cash and cash
equivalents (1,939) (3,585) (3,354)
Cash and cash equivalents at
the beginning of the period 20,715 24,077 24,077
Effect of foreign exchange rate
changes 1,814 (795) (8)
Cash and cash equivalents at
end of the period 20,590 19,697 20,715
----------- -------------- ----------------
Reconciliation of net cash flow to movement in net funds
in the period
Net decrease in cash and cash
equivalents (1,939) (3,585) (3,354)
Net cash outflow from the decrease
in debt 1,053 1,049 1,094
Non-cash movement re the new
financial leases (84) - -
Non-cash movements re costs
of raising loan finance (10) (10) (20)
------------ ------------- ----------------
Decrease in net funds during
the period (980) (2,546) (2,280)
Opening net funds at the beginning
of the period 14,558 16,846 16,846
Effect of foreign exchange rate
changes 1,814 (795) (8)
------------ ------------- ----------------
Closing net funds at the end
of the period 15,392 13,505 14,558
------------ ------------- ----------------
Consolidated statement of comprehensive total income
(CSOCTI)
for the six months ended 30 June 2016 (unaudited)
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Profit for the financial period 6,195 3,732 10,800
Other comprehensive income/ (charges):
Items that may be reclassified to
profit and loss:
Currency translation differences
on foreign currency net investments 1,401 (712) (175)
Items that will never be reclassified
to profit and loss:
Remeasurement of defined benefit
liabilities and assets (1,305) 416 1,157
Related deferred tax 248 (83) (207)
Other comprehensive income/(charges)
for the period net of tax 344 (379) 775
Total comprehensive income for the
period 6,539 3,353 11,575
Notes to the consolidated interim financial statements
for the six months ended 30 June 2016
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 2015 does
not constitute the group's statutory accounts for 2015 as defined
in Section 434 of the Companies Act 2006. Statutory accounts for
2015 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 28 September 2016, 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
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 2015.
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
2016 2015 2015
GBP'000 GBP'000 GBP'000
Continuing operations
Hire 25,450 22,996 49,910
Sales 2,806 3,186 5,993
Installations 2,031 2,058 4,155
Group consolidated revenue from the
sale of goods and provision
of services 30,287 28,240 60,058
-------- -------- ------------
The geographical analysis of the group's revenue by origination
is:
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
United Kingdom 20,172 19,239 39,830
Rest of Europe 4,787 3,989 9,925
Middle East and Africa 5,329 5,012 10,303
30,288 28,240 60,058
--------- -------- ------------
4 Taxation
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Current tax
UK corporation tax at 20% (30 June
2015 and 31 December 2015: 20.25%) 980 779 2,043
Adjustments in respect of prior periods - - (177)
--------- -------- ------------
980 779 1,866
Overseas tax 299 120 536
Adjustments to overseas tax in respect
of prior periods 7 - 28
Total current tax charge 1,286 899 2,430
--------- -------- ------------
Deferred tax
Deferred tax on the origination and
reversal of temporary differences 48 48 12
Adjustments in respect of prior periods - - 125
Total deferred tax charge 48 48 137
--------- -------- ------------
Total tax charge for the financial
period attributable to
continuing operations 1,334 947 2,567
--------- -------- ------------
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 20%
(30 June 2015 and 31 December 2015: 20.25%) as follows:
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Profit before taxation from continuing
and total operations 7,529 4,679 13,367
-------- -------- ------------
Tax at the UK effective annualised
corporation tax rate of 20%
(30 June 2015 and 31 December 2015:
20.25%) 1,506 947 2,707
Effects of:
Expenses not deductible for tax purposes 45 58 86
Movement in overseas trading losses (46) 122 88
Effect of different tax rates of subsidiaries
operating abroad (175) (180) (331)
Effect of change in rate of corporation
tax (3) - 41
Adjustments to tax charge in respect
of previous periods 7 - (24)
Total tax charge for the financial
period 1,334 947 2,567
-------- -------- ------------
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 20%; the
reduction to 20% for the tax years ending 31 March 2016 and 31
March 2017 having been substantially enacted on 2 July 2013. UK
deferred tax has been provided at 19% 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
2016
------------------------
Continuing Number of
earnings Shares
GBP'000
Basic earnings/weighted average number
of shares 6,195 42,262,082
-----------
Basic earnings per ordinary share (pence) 14.66p
6 months ended 30 June
2015
------------------------
Continuing Number of
earnings shares
GBP'000
Basic earnings/weighted average number
of shares 3,732 42,262,082
-----------
Basic earnings per ordinary share (pence) 8.83p
12 months ended 31 December
2015
-------------------------------
Continuing Number of
earnings shares
GBP'000
Basic earnings/weighted average number
of shares 10,800 42,262,082
---------------
Basic earnings per ordinary share (pence) 25.55p
Diluted earnings per share
There were no dilutive instruments outstanding at 30 June 2016
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
Dividends declared and paid on ordinary one pence shares during
the 6 months ended 30 June 2016 were as follows:
Paid during the 6 months
ended 30 June 2016
-------------------------------
Pence per share Total dividend
paid
GBP'000
Final dividend for the year ended 31 December
2015 paid to members on the register on
27 May 2016 on 24 June 2016 11.90p 5,029
--------------- --------------
The above dividend was charged against reserves during the 6
months ended 30 June 2016.
On 28 September 2016 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 November 2016 to shareholders
on the register on 7 October 2016 and will be charged against
reserves in the second half of 2016.
Dividends declared and paid on ordinary one pence shares during
the 6 months ended 30 June 2015 were as follows:
Paid during the 6 months
ended 30 June 2015
-------------------------------
Pence per share Total dividend
declared
GBP'000
Final dividend for the year ended 31 December
2014 paid to members on the register on
29 May 2015 on 19 June 2015 11.90p 5,029
--------------- --------------
The above dividend was charged against reserves during the 6
months ended 30 June 2015.
Dividends declared and paid on ordinary one pence shares during
the 12 month period ended 31 December 2015 were as follows:
Paid during the 12 months
ended
31 December 2015
-------------------------------
Pence per share Total dividend
paid
GBP'000
Final dividend for the year ended 31 December
2014 paid to members on the register on
29 May 2015 on 19 June 2015 11.90p 5,029
Interim dividend declared on 29 September
2015 and paid to shareholders on the register
as at 9 October 2015 on 4 November 2015 11.90p 5,029
--------------- --------------
23.80p 10,058
--------------- --------------
The above dividends were charged against reserves during the 12
months ended 31 December 2015.
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 2016 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 GBP1,512,000 (30 June
2015: GBP1,695,000; 31 December 2015: GBP2,443,000). 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 was agreed with the pension scheme trustees in June
2014. In accordance with this schedule of contributions, which is
effective from 1 January 2014, the group made additional
contributions in 2014 to remove the funding deficit calculated as
at 31 December 2013 and this has now been eliminated. Throughout
2015 and 2016 to date the group has continued to make a
contribution towards expenses of GBP10,000 per month. In addition
the group made an additional voluntary contribution of GBP32,000
per month from January 2016 and this was increased to GBP80,000 per
month from April 2016. The group expects to continue to make the
current level of contributions until 31 March 2017 at which time
they will cease pending a review of the position in conjunction
with the December 2016 triennial funding valuation.
Assumptions used to calculate the scheme surplus
A qualified independent actuary has updated the results of the
December 2013 full actuarial valuation to calculate the surplus as
disclosed below.
The major assumptions used to determine the present value of the
scheme's defined benefit obligation were:
30 June 30 June 31 December
2016 2015 2015
Rate of increase in pensionable N/A N/A N/A
salaries
Rate of increase in pensions 2.90% 3.10% 3.00%
in payment
Discount rate applied to scheme 2.80% 3.60% 3.70%
liabilities
Inflation assumption - RPI 2.90% 3.20% 3.00%
Inflation assumption - CPI 1.90% 2.20% 2.00%
Percentage of members taking
maximum tax free lump sum on
retirement
90% 90% 90%
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
subsequently.
Assumptions regarding future mortality experience are set based
on advice in accordance with published statistics. The mortality
table used at 30 June 2016 is 110% S2NA CMI2015 (30 June 2015: 110%
S1NA CMI2014; 31 December 2015: 110% S2NA CMI2015) with a 1% per
annum long term improvement for both males and females (30 June
2015: 1% males and females; 31 December 2015: 1% males and
females).
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
2016 2015 2015
Male, current age 45 22.6 years 22.5 years 22.6 years
Female, current age 45 24.9 years 25.2 years 24.9 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 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Total fair value of plan assets 40,768 38,385 37,734
Present value of defined benefit
funded obligation calculated in
accordance with stated assumptions (39,256) (36,690) (35,291)
----------- ----------- ------------
Surplus in the scheme calculated
in accordance with stated
assumptions recognised in the balance
sheet 1,512 1,695 2,443
----------- ----------- ------------
The movement in the fair value of the scheme's assets during the
period was as follows:
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Fair value of plan assets at the start
of the period 37,734 38,864 38,864
Expected return on pension scheme assets 688 649 1,298
Actual return less expected return
on pension scheme assets 2,737 (359) (895)
Employer contributions - normal 396 60 120
Benefits paid (717) (774) (1,521)
Administration expenses charged in
the income statement (70) (55) (132)
Fair value of plan assets at the end
of the period 40,768 38,385 37,734
--------- -------- -----------
The movement in the present value of the defined benefit
obligation during the period was as follows:
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Present value of defined benefit funded
at the beginning of the period (35,291) (37,611) (37,611)
Interest on defined benefit obligation (640) (628) (1,253)
Actuarial (loss) / gain recognised
in the CSOCTI calculated in
accordance with stated assumptions (4,042) 775 2,052
Benefits paid 717 774 1,521
Closing present value of defined benefit
funded obligation calculated
in accordance with stated assumptions (39,256) (36,690) (35,291)
---------- ---------- -----------
Amounts recognised in the income statement
The amounts (charged) / credited in the income statement
were:
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Expected return on pension scheme
assets 688 649 1,298
Interest on pension scheme liabilities (640) (628) (1,253)
---------- -------- ------------
Net pension interest credit included
within finance income 48 21 45
Scheme administration expenses (70) (55) (132)
Net pension charge in the income statement (22) (34) (87)
---------- -------- ------------
Actuarial gains and losses recognised in the consolidated
statement of comprehensive total income (CSOCTI)
The amounts (charged) / credited in the CSOCTI were:
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Actual return less expected return
on pension scheme assets 2,737 (359) (895)
Experience gains and losses arising
on plan obligation 281 123 371
Changes in demographic and financial
assumptions underlying the
present value of plan obligations (4,323) 652 1,681
---------- ---------- -----------
Actuarial (loss) / gain calculated
in accordance with stated assumptions
recognised in the CSOCTI (1,305) 416 1,157
---------- ---------- -----------
8 Called up share capital
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Issued and fully paid:
42,262,082 ordinary shares of one
pence each (30 June 2015 and 31 December
2015: 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 2016 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
2016 2015 2015
GBP'000 GBP'000 GBP'000
Profit for the period attributable
to equity shareholders 6,195 3,732 10,800
Adjustments for:
Taxation charge 1,334 947 2,567
Finance costs 1,135 84 164
Finance income (1,207) (145) (280)
Inter-company foreign exchange gains
and losses (1,062) 355 (43)
Profit on the sale of property, plant
and equipment (298) (211) (466)
Depreciation 2,702 2,531 4,959
EBITDA* 8,799 7,293 17,701
Excess of normal pension contributions
compared with service and
administration expenses (326) (5) 12
Workings capital movements:
Stocks (2,195) (1,389) (1,024)
Trade and other receivables 508 (660) (2,196)
Trade and other payables 325 (236) 139
Provisions - (7) (9)
Cash generated from operations 7,111 4,996 14,623
-------- -------- ------------
* Earnings Before Interest, Taxation, Depreciation, profit on
the sale of property, plant and equipment, Amortisation and
non-recurring items.
10 Analysis of net funds
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Cash and cash equivalents per cash
flow statement 20,590 19,697 20,715
-------- ---------- -----------
Bank loans (4,985) (5,965) (5,975)
Obligations under finance leases (213) (227) (182)
-------- ---------- -----------
Gross debt (5,198) (6,192) (6,157)
-------- ---------- -----------
Net funds 15,392 13,505 14,558
-------- ---------- -----------
11 Adoption of Financial Reporting Standards (FRS) 101 and 102 -
Reduced disclosure framework for parent and UK subsidiary company
accounts
The group's consolidated financial statements for the year ended
31 December 2016 will continue to be prepared in accordance with
European Union endorsed International Financial Reporting Standards
(IFRSs) on a consistent basis with the previous financial year.
Last year, the parent company accounts of Andrews Sykes Group
plc were prepared in accordance with FRS 102 and the company
elected to take advantage of the reduced disclosure framework
permitted by paragraph 1.12 of that standard. The company intends
to continue to take advantage of the reduced disclosure framework
again this year. Paragraph 1.11 requires the company to give
shareholders the opportunity to object to the adoption of the
reduced disclosure framework within a reasonable specified
timeframe. Accordingly any shareholder wishing to object to the
adoption of the reduced disclosure framework set out in paragraph
1.12 of FRS 102 for the parent company accounts of Andrews Sykes
Group plc should write to the Company Secretary at the company's
registered office no later than 30 November 2016 setting out the
reasons for any objection. Any letter received after that date will
not be valid.
The group's UK subsidiary companies' accounts for the year ended
31 December 2016 will continue to be prepared in accordance with
the reduced disclosure framework of either FRS 101 or FRS 102
depending upon the circumstances relevant to each subsidiary.
12 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.
The company news service from the London Stock Exchange
END
IR DVLFLQKFFBBF
(END) Dow Jones Newswires
September 29, 2016 02:00 ET (06:00 GMT)
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