RNS Number : 5422Y
Swan(John) & Sons PLC
08 July 2008
JOHN SWAN & SONS PLC
PRELIMINARY RESULTS FOR THE YEAR TO 30 APRIL 2008
STATEMENT BY THE CHAIRMAN John Swan & Sons PLC
Livestock auctioneering throughout the country was curtailed in the early part
of the year by the Foot and Mouth outbreak and, consequently, John Swan Limited
incurred an interim loss. It is most satisfying to report a strong recovery in
the second half, resulting in the company recording a profit for the full year.
This outcome was achieved in very difficult circumstances and I would like, on
your behalf, to thank everyone who contributed to it. A fuller report on the
auctioneering business is included in the Statement by the Chairman of John
Swan Limited below.
Our results for the year are summarised as follows:
2008 2007
£ £
(Loss)/Profit before tax
John Swan Limited 107,917 200,929
John Swan & Sons PLC (188,522) (80,340)
IAS 19 pension adjustment 8,000 (9,000)
___________ ___________
(Loss)/Profit before tax (72,605) 111,589
Our financial statements for the year ended 30 April 2008 are the first to be
prepared under the new International Financial Reporting Standards (IFRSs).
Although the layout of the financial statements and the disclosure of
information have changed, there are no changes to the profits previously
reported under UK Generally Accepted Accounting Principles (UK GAAP). Whilst
the Group consolidated accounts have been prepared under IFRSs, the accounts of
the parent Company continue to be prepared under UK GAAP.
The balance sheet shows a net cash position of £679,000, a decrease of
£1,579,000 since the last year end. Of the decrease, £182,700 was paid out as
dividends to shareholders and the balance of £1,396,000 relates mainly to
increased working capital requirements for John Swan Limited due to higher
livestock values and improved trading volume at the year end.
The position with regard to planning permission for the redevelopment of the
existing mart site at St Boswells is still the subject of negotiat
STATEMENT BY THE CHAIRMAN John Swan Limited
As was noted in our interim financial report, the livestock sector was again subjected to another outbreak of Foot and Mouth last year
and this had a severe impact on the industry in general and on the sheep sector in particular. It is therefore with a degree of
satisfaction that I report that the half year loss before tax of £109,621 has been transformed in to a profit before tax of £107,917 for the
year.
The increase in livestock values has obviously had a beneficial effect on our income and the strength of sterling will be a major factor
in maintaining these values. Of course, insofar as auction markets are concerned, any increase in value is commensurate with an increase in
credit risk, as the markets continue to provide financial security for their selling customers. However, the reduction in both the national
beef herd and sheep flock must inevitably have an effect on throughput. With a greater proportion of primary producers finishing their
stock, we will continue to work at expanding our weekly prime stock sales, as these are the mainstay of any livestock market. Our area is
renowned for the quality of the breeding replacements it produces and whilst a proportion of these are purchased to remain in Scotland,
numbers in excess of 30% of the total are purchased by customers from south of the Border. At the time of writing, the position is unclear
regarding arrangements for the autumn, with Bluetongue restrictions constantly changing. We shall, however, remain flexible to ensure that both our buying and selling customers are provided
with an appropriate service.
Our valuation and estate agency division has been active throughout the year and the income sourced from this area, together with income
derived from farm displenishing sales and implement sales, provides a valuable and substantial contribution to our profitability. I think it
is worth recording that our implement sales at St Boswells are now established as principal sales of their type in the country. Since the
year end, we have also entered the furniture and antique business by creating a new division of the company, which will trade as Swan &
Turner. We have rented premises in Jedburgh, where regular sales will be conducted throughout the year. These will be in addition to our
established sales of fine art, which continue to be successful.
As was reported at the half year, the outline planning application for the rural centre has been recommended for approval by the
Scottish Ministers and we are in the process of negotiating formal planning permission. We shall keep shareholders and customers informed of
any developments.
In conclusion, I wish to thank all of our staff for their efforts in producing the results we have for the year and also our loyal
customers, without whose support we could not continue to operate. Auction marts are subject to significant legislation, all of which comes
at a cost. However, we shall continue to provide an efficient marketing option for our customers, an option which our dedicated staff are
keen to provide.
George T Neill
Chairman
DATE OF ANNUAL GENERAL MEETING
The Annual General Meeting will be held on Thursday 28 August 2008 in The Lodge Hotel, Carfraemill, Lauder at 12.00 p.m.
TRANSFER BOOKS
Transfer books will be closed from 30 July to 1 August 2008, both dates inclusive, for the preparation of dividend warrants. Warrants
for the proposed dividend, if approved at the Annual General Meeting, will be posted on 28 August 2008 to shareholders on the register at
the close of business on 1 August 2008.
PROPOSED DIVIDEND FOR YEAR
Rate of dividend on ordinary shares 15p (2007 - 15p)
Rate of dividend on deferred shares Nil (2007 - Nil)
An interim dividend for the year of 15p per ordinary share (2007 - 15p) was paid on 7 March 2008.
NOMINATED ADVISER
Contact : Sandy Fraser, Brewin Dolphin Limited
Telephone number : 0131 225 2566
Geoghegan & Co
Secretaries
8 July 2008
Consolidated income statement
For the year ended 30 April 2008
2008 2007
£ £
Revenue 1,518,130 1,575,162
Staff costs 1,050,400 996,024
Depreciation 110,092 100,836
Other operating expenses 735,237 702,330
1,895,729 1,799,190
Operating loss (377,599) (224,028)
Investment revenues 305,694 290,331
Finance costs (888) (744)
Share of results of joint venture after tax 188 3,221
Consideration for grant of option - 42,809
____________ ___________
(Loss)/Profit before tax (72,605) 111,589
Tax (1,122) (16,390)
____________ ___________
(Loss)/Profit for the year (73,727) 95,199
Basic and diluted earnings per share (12.11)p 15.6p
Consolidated statement of recognised income and expense
For the year ended 30 April 2008
2008 2007
£ £
Actuarial gains/(losses) on defined benefit
pension scheme 515,000 188,000
Tax on items taken directly to equity (120,000) (57,000)
___________ ____________
Net income recognised directly in equity 395,000 131,000
(Loss)/Profit for the year (73,727) 95,199
___________ ____________
Total recognised income and expense 321,273 226,199
Consolidated balance sheet
As at 30 April 2008
Notes 2008 2007
£ £
Non-current assets
Property, plant and motor vehicles 1,769,621 1,836,781
Investment in joint venture 8,400 8,212
Pension scheme assets 1,715,000 1,192,000
3,493,021 3,036,993
Current assets
Inventories 108,059 35,648
Trade and other receivables 3,646,926 2,279,396
Cash and cash equivalents 1,036,319 2,258,814
4,791,304 4,573,858
Total assets 8,284,325 7,610,851
Current liabilities
Trade and other payables 223,061 159,224
Current tax liabilities - 4,500
Obligations under finance leases 2,478 2,478
Bank overdraft 357,344 -
582,883 166,202
Net current assets 4,208,421 4,407,656
Non-current liabilities
Deferred tax liabilities 504,388 382,890
Obligations under finance leases 4,371 6,849
Deferred income 16,800 17,600
525,559 407,339
Total liabilities 1,108,442 573,541
Net assets 7,175,883 7,037,310
Equity 3
Share capital 168,000 168,000
Revenue reserve 70,000 70,000
Employee Benefit Trust reserve (39,815) (39,815)
Retained earnings 6,977,698 6,839,125
Total equity 7,175,883 7,037,310
Consolidated cash flow statement
For the year ended 30 April 2008
Notes 2008 2007
£ £
Net cash used in operating activities 1 (1,489,623) (311,021)
Investing activities
Interest received 135,694 134,331
Net proceeds from grant of option to purchase - 42,809
land
Proceeds on disposal of motor vehicles 2,200 15,785
Purchases of plant and motor vehicles (42,932) (76,270)
Net cash from investing activities 94,962 116,655
Financing activities
Dividends paid (182,700) (182,700)
Repayment of obligations under finance leases (2,478) (2,891)
Net cash used in financing activities (185,178) (185,591)
Net decrease in cash and cash equivalents (1,579,839) (379,957)
Cash and cash equivalents at beginning of 2,258,814 2,638,771
year
__________ ____________
Cash and cash equivalents at end of year 2 678,975 2,258,814
Notes
1 Notes to the cash flow statement
2008 2007
£ £
(Loss)/Profit before tax (72,605) 111,589
Adjustments for:
Investment revenues (305,694) (290,331)
Finance costs 888 744
Share of results of joint venture (188) (3,221)
Pension scheme current service cost 162,000 165,000
Depreciation of property, plant and motor vehicles 110,092 100,836
Gain on sale of motor vehicles (2,200) (6,685)
Deferred income released in the year (800) (800)
Consideration for grant of option - (42,809)
Operating cash flows before movement in working (108,507) 34,323
capital
(Increase)/Decrease in inventories (72,411) 16,933
(Increase) in receivables (1,367,530) (236,988)
Increase/(Decrease) in payables 63,837 (9,545)
Cash used in operations (1,484,611) (195,277)
Taxes paid (4,124) (115,000)
Interest paid (888) (744)
___________ ___________
Net cash used in operating activities (1,489,623) (311,021)
2 Cash and cash equivalents
2008 2007
£ £
Bank and cash balances 1,036,319 2,258,814
Bank overdraft (357,344) -
Cash and cash equivalents in the cash flow 678,975 2,258,814
statement
3 Capital and reserves
Reconciliation of movement in capital and reserves
Employee
Benefit
Trust reserve
Share Revenue Retained
capital reserve earnings
£ £ £ £
At 1 May 2006 168,000 70,000 (39,815) 6,795,626
Profit for the year - - - 95,199
Other recognised gains and - - - 131,000
losses for the year
Dividends - - - (182,700)
At 1 May 2007 168,000 70,000 (39,815) 6,839,125
Loss for the year - - - (73,727)
Other recognised gains and - - - 395,000
losses for the year
Dividends - - - (182,700)
At 30 April 2008 168,000 70,000 (39,815) 6,977,698
4 Explanation of transition to IFRSs
This is the first year that the company has presented its financial
statements under IFRS. The following disclosures are required in the year
of transition. The last financial statements under UK GAAP were for the
year ended 30 April 2007 and the date of transition to IFRSs was therefore
1 May 2006.
Reconciliation of equity at 1 May 2006 (date of transition to IFRSs)
Effect of transition to IFRSs
Note UK GAAP IFRSs
£ £ £
Property, plant and 1,858,229 - 1,858,229
motor vehicles
Investment in joint 4,991 - 4,991
venture
1 Pension scheme 709,000 304,000 1,013,000
assets
Total non-current 2,572,220 304,000 2,876,220
assets
Inventories 52,581 - 52,581
Trade and other 2,042,408 - 2,042,408
receivables
Cash and cash 2,638,771 - 2,638,771
equivalents
Total current assets 4,733,760 - 4,733,760
Total assets 7,305,980 304,000 7,609,980
Trade and other 168,769 - 168,769
payables
Current tax 125,000 - 125,000
liabilities
1 Deferred tax - 304,000 304,000
liabilities
Deferred income 18,400 - 18,400
Total liabilities 312,169 304,000 616,169
Total assets less 6,993,811 - 6,993,811
total liabilities
Issued capital 168,000 - 168,000
Revenue reserve 70,000 - 70,000
Employee Benefit (39,815) - (39,815)
Trust reserve
Retained earnings 6,795,626 - 6,795,626
Total equity 6,993,811 - 6,993,811
Notes to the reconciliation of equity at 1 May 2006
1 The pension scheme asset was presented net of deferred tax under
previous GAAP but under IFRSs the pension scheme asset must be presented
gross with any deferred tax consequences recognised separately.
4 Explanation of transition to IFRSs (continued)
Reconciliation of equity at 30 April 2007 (date of last UK GAAP financial
statements)
Effect of transition to IFRSs
Note UK GAAP IFRSs
£ £ £
Property, plant and 1,836,781 - 1,836,781
motor vehicles
Investment in joint 8,212 - 8,212
venture
1 Pension scheme 834,000 358,000 1,192,000
assets
Total non-current 2,678,993 358,000 3,036,993
assets
Inventories 35,648 - 35,648
Trade and other 2,279,396 - 2,279,396
receivables
Cash and cash 2,258,814 - 2,258,814
equivalents
Total current assets 4,573,858 - 4,573,858
Total assets 7,252,851 358,000 7,610,851
Trade and other 159,224 - 159,224
payables
Current tax 4,500 - 4,500
liabilities
1 Deferred tax 24,890 358,000 382,890
liabilities
Obligations under 9,327 - 9,327
finance leases
Deferred income 17,600 - 17,600
Total liabilities 215,541 358,000 573,541
Total assets less 7,037,310 - 7,037,310
total liabilities
Issued capital 168,000 - 168,000
Revenue reserve 70,000 - 70,000
Employee Benefit (39,815) - (39,815)
Trust reserve
Retained earnings 6,839,125 - 6,839,125
Total equity 7,037,310 - 7,037,310
Notes to the reconciliation of equity at 30 April 2007
1 The pension scheme asset was presented net of deferred tax under
previous GAAP but under IFRSs the pension scheme asset must be presented
gross with any deferred tax consequences recognised separately.
4 Explanation of transition to IFRSs (continued)
Reconciliation of profit for year ended 30 April 2007
Effect of transition to
IFRSs
Note UK GAAP IFRSs
£ £ £
Revenue 1,575,162 1,575,162
Staff costs 996,024 996,024
Depreciation 100,836 100,836
Other operating 702,330 702,330
expenses
1,799,190 1,799,190
Operating loss (224,028) (224,028)
1 Investment revenues 156,000 290,331
1 134,331
1 Finance costs (744) (744)
2 Share of results of 3,622 (401) 3,221
joint venture
Consideration for 42,809 42,809
grant of option
__________ __________
(177,597) 111,589
1 Other finance income 156,000 (156,000) -
1 Interest receivable 134,899 (134,331) -
2 (568)
1 Interest payable and (954) 744 -
similar charges
2 __________ 210 __________
Profit before tax 112,348 111,589
2 Tax (17,149) 759 (16,390)
__________ __________
Profit for year 95,199 - 95,199
Notes to the reconciliation of profit for year ended 30 April 2007
1 The Group's other finance income, which relates to the pension scheme,
was shown as a separate item under previous GAAP but under IFRSs it has
been included in investment revenues, together with interest receivable.
Interest payable and similar charges are shown as finance costs under
IFRSs.
2 The components of the Group's share of profit of the joint venture were
shown separately under previous GAAP but under IFRSs the Group's share
of profit of the joint venture has been shown as a single line item.
4 Explanation of transition to IFRSs (continued)
Explanation of material adjustments to the cash flow statements for the
year ended 30 April 2007 :
Taxes of £115,000 paid during the year ended 30 April 2007 are classified
as operating cash flows under IFRSs, but were included in a separate
category of taxation cash flows under previous GAAP.
Interest of £744 paid during the year ended 30 April 2007 is also
classified as operating cash flows under IFRSs, but was included in returns
on investments and servicing of finance under previous GAAP.
There are no other material differences between the cash flow statement
presented under IFRSs and the cash flow statement presented under previous
GAAP.
5 Note to the preliminary announcement
The abridged financial information set out above has been extracted without
material adjustment from financial statements approved by the Directors of
John Swan & Sons PLC on 8 July 2008 which received an unqualified audit
report by the independent auditors, which will be delivered to the
Registrar of Companies.
The financial statements for the year ended 30 April 2007 have been filed
with the Registrar of Companies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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