Last checked at 28 Sep 2011 07:00
Andrews Sykes Group plc
28 September 2011
Interim Financial Statements for the six months to 30 June 2011
Andrews Sykes Group plc Summary of Results | 6 months ended 30 June 2011 (unaudited) £'000 | 6 months ended 30 June 2010 (unaudited) £'000 |
Revenue from continuing operations | 27,717 | 27,573 |
Normalised EBITDA* from continuing operations |
7,784 |
8,851 |
Normalised operating profit ** | 5,930 | 6,816 |
Profit for the financial period | 4,116 | 5,225 |
Basic earnings per share (pence) | 9.58p | 11.83p |
Net funds | 7,920 | 2,762 |
* Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-recurring items.
** Operating profit before non-recurring items as reconciled on the consolidated income statement.
Andrews Sykes Group plc
Chairman's Statement
Overview
The group's revenue for the six months ended 30 June 2011 was £27.7 million which was almost the same as last year's figure of £27.6 million. The group's normalised operating profit* fell by £0.9 million from £6.8 million in the first half of 2010 to £5.9 million in the current period.
The group continues to generate strong cash flows. As at 30 June 2011 the group has net funds of £7.9 million, an increase of £3.0 million compared with 31 December 2010 and an increase of £5.2 million compared with the position as at 30 June 2010. This clearly demonstrates the group's strong positive cash flow and is after share buyback payments of £1.1 million.
Management has been mindful of the need to maintain the operational structure of the business and to ensure that this is not damaged by unnecessary cuts in expenditure. Our hire fleet continues to be well maintained and the group has spent £3.0 million on new plant and equipment in the six months under review. This is necessary to ensure that we remain in a strong position ready to take advantage of any business opportunities whenever they arise.
Operations review
Our main hire and sales business in the UK and Northern Europe has been adversely affected by the mild weather at the end of 2010 / 11 winter which resulted in an early end to the heating season. Whilst May and June saw some dry and warm weather it was never hot enough to significantly stimulate our air conditioning business which remained flat.
During the period we opened our fourth Dutch depot in the North East of the country. This has strengthened our market leading position in the Netherlands and will provide a platform for future expansion in the area.
Our Belgian subsidiary, which was opened as a low cost based operation in 2007, traded well and provided a significantly improved contribution to operating profit in the period. The business continues to develop and become more self-sufficient and further opportunities are seen as the market continues to grow.
In June we opened a new low cost based operation in Italy following the business model that we successfully implemented in Belgium. Although at a very early stage, management are confident that this will provide good opportunities for the years ahead.
Overall, our UK installation business performed in line with last year albeit at relatively modest levels compared with the rest of the group.
Our business in the Middle East continues to suffer from the economic downturn in the region although we have recently seen some improvements in trading, particularly in Abu Dhabi. Debt collection remains a concern and it has once again been necessary to increase the level of bad debt provision to ensure that adequate reserves are held at the end of the period. This area remains a priority for management and we are currently making more improvements in this area.
Profit for the financial period and earnings per share
The above £0.9 million decrease in operating profit together with an adverse movement in the euro sterling exchange rate, which resulted in an inter company foreign exchange loss of £0.2 million compared with a profit of £0.4 million last period, were the main reasons for the decrease in the profit for the financial period which, after tax, fell by £1.1 million from £5.2 million in the first half of 2010 to £4.1 million in the current period. Basic earnings per share fell by 19% to a still creditable 9.83 pence for the six month period.
Dividends
No interim dividends have been declared in the period under review. The Board continues to adopt the policy of returning value to shareholders whenever possible and accordingly the decision regarding an interim dividend will be taken later in the year in the light of profitability and cash resources.
Share buyback programme
The Board continues to believe that shareholder value will be optimised by the purchase by the company, when appropriate, of its own shares.
During the six months ended 30 June 2011 a total of 431,216 ordinary shares were purchased for cancellation for a total consideration of £0.9 million. Total cash outflow for share buybacks was £1.1 million as this includes the payment of £0.2 million in respect of share purchases made at the end of last year. These purchases enhanced earnings per share and were for the benefit of all shareholders.
The directors confirm that they intend to continue to actively pursue this policy and any shareholder who is considering taking advantage of the share buyback programme is invited to contact their broker, bank manager, solicitor, accountant or other independent financial advisor authorised under the Financial Services and Markets Act 2000, in order to contact Brewin Dolphin Limited who are operating the buyback programme on behalf of the company.
Outlook
Trading conditions in the third quarter to date have been challenging for our main UK hire and sales business. The summer has not been hot enough to stimulate demand for our all important air conditioning business. Trading conditions in the Middle East remain challenging and will continue to do so for the remainder of 2011.
Nevertheless our business remains strong and cash generative. Our specialist hire divisions continue to perform well and we will continue to follow our policies of investing in both these and our traditional core products as well as developing our non-seasonal businesses.
Overall the Board is cautiously anticipating a reasonable performance for the rest of 2011.
JG Murray
Chairman
27 September 2011
* Operating profit before non-recurring items as reconciled on the consolidated income statement.
Andrews Sykes Group plc Consolidated Income Statement For the 6 months ended 30 June 2011 (unaudited) | |||||
6 months ended 30 June 2011 £'000 | 6 months ended 30 June 2010 £'000 | 12 months ended 31 December 2010 £'000 | |||
Continuing operations
| |||||
Revenue Cost of Sales | 27,717 (12,533) | 27,573 (11,883) | 55,951 (24,015) | ||
Gross Profit | 15,184 | 15,690 | 31,936 | ||
Distribution Costs | (4,642) | (4,518) | (9,219) | ||
Administrative expenses: - Recurring | (4,612) | (4,356) | (8,775) | ||
- Non-recurring | - | 164 | 164 | ||
- Total | (4,612) | (4,192) | (8,611) | ||
Operating Profit | 5,930 | 6,980 | 14,106 | ||
Normalised EBITDA* Depreciation and impairment losses Profit on the sale of plant and equipment | 7,784 (2,092) 238 | 8,851 (2,281) 246 | 17,721 (4,239) 460 | ||
Normalised operating profit Profit on the sale of property | 5,930 - | 6,816 164 | 13,942 164 | ||
Operating profit | 5,930 | 6,980 | 14,106 | ||
Income from other participating interests Finance income Finance costs Inter company foreign exchange gains and losses | - 888 (974) (197) | - 843 (1,103) 395 | 400 1,844 (2,144) 168 | ||
Profit before taxation | 5,647 | 7,115 | 14,374 | ||
Taxation | (1,531) | (1,890) | (3,812) | ||
Profit for the financial period | 4,116 | 5,225 | 10,562 | ||
There were no discontinued operations in any of the above periods. | |||||
Earnings per share from continuing operations | |||||
Basic (pence) | 9.58p |
| 11.83p | 24.19p | |
Diluted (pence) | 9.58p | 11.83p | 24.18p | ||
Dividends paid per equity share (pence) | 0.00p | 0.00p | 11.10p | ||
*Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-recurring items. | |||||
Andrews Sykes Group plc
Consolidated Balance Sheet
As at 30 June 2011 (unaudited)
30 June 2011 | 30 June 2010 | 31 December 2010 | |||
£'000 | £'000 | £'000 | |||
Non-current assets Property, plant and equipment Lease prepayments Trade investments Deferred tax asset Retirement benefit pension surplus |
13,154 57 164 717 2,411 |
12,543 58 164 1,238 - |
11,817 58 164 721 1,990 | ||
16,503 | 14,003 | 14,750 | |||
Current assets Stocks Trade and other receivables Cash and cash equivalents |
3,919 13,640 22,632
|
4,117 13,723 23,716 |
4,032 15,917 25,709 | ||
40,191 | 41,556 | 45,658 | |||
Current liabilities Trade and other payables Current tax liabilities Bank loans Obligations under finance leases Provisions Derivative financial instruments |
(9,206) (1,689) (6,000) (203) (13) - |
(7,521) (1,980) (6,000) (261) (13) - |
(10,143) (2,274) (6,000) (203) (13) (7) | ||
(17,111) | (15,775) | (18,640) | |||
Net current assets | 23,080 | 25,781 | 27,018 | ||
Total assets less current liabilities | 39,583 | 39,784 | 41,768 | ||
Non-current liabilities Bank loans Obligations under finance leases Provisions Derivative financial instruments |
(8,000) (475) (41) (34) |
(14,000) (628) (53) (65)
|
(14,000) (553) (47) (41) | ||
(8,550) | (14,746) | (14,641) | |||
Net assets | 31,033 | 25,038 | 27,127 | ||
Equity Called-up share capital Share premium Retained earnings Translation reserve Other reserves |
427 13 27,082 3,260 241 |
434 - 21,988 2,585 234 |
431 - 23,607 2,842 237 | ||
Surplus attributable to equity holders of the parent | 31,023 | 25,241 | 27,117 | ||
Minority interest | 10 | 10 | 10 | ||
Total Equity | 31,033 | 25,251 | 27,127 |
Andrews Sykes Group plc Consolidated Cash Flow Statement For the 6 months ended 30 June 2011 (unaudited) | 6 months ended 30 June 2011 £'000 | 6 months ended 30 June 2010 £'000 | 12 months ended 31 December 2010 £'000 | ||
Cash flows from operating activities Cash generated from operations Interest paid Net UK corporation tax paid Net withholding tax paid Overseas tax paid |
8,783 (218) (1,886) - (313)
|
8,856 (292) (843) - (862)
|
17,763 (503) (2,113) (119) (1,165)
| ||
Net cash inflow from operating activities | 6,366 | 6,859 | 13,863 | ||
Investing activities Dividends received from participating interests (trade investments) Movements in ring fenced bank deposit accounts Sale of assets held for sale Sale of plant and equipment Purchase of property, plant & equipment Interest received |
- - - 330 (2,977) 201 |
- 9,000 390 344 (1,014) 73 |
400 9,000 390 643 (1,745) 168 | ||
Net cash (outflow) / inflow from investing activities | (2,446) | 8,793 | 8,856 | ||
Financing activities Loan repayments Finance lease capital repayments Equity dividends paid Purchase of own shares Issue of new shares |
(6,000) (78) - (1,113) 13 |
(9,000) (130) - (1,053) - |
(9,000) (263) (4,800) (1,184) - | ||
Net cash outflow from financing activities | (7,178) | (10,183) | (15,247) | ||
Net (decrease) / increase in cash and cash equivalents | (3,258) | 5,469 | 7,472 | ||
Cash and cash equivalents at beginning of period Effect of foreign exchange rate changes | 25,709 181 | 18,150 97 | 18,150 87 | ||
Cash and cash equivalents at end of period | 22,632 | 23,716 | 25,709 | ||
Reconciliation of net cash flow to movement in net funds in the period
Net (decrease) / increase in cash and cash equivalents | (3,258) | 5,469 | 7,472 | ||
Cash outflow from decrease in debt | 6,078 | 9,130 | 9,263 | ||
Movements in ring fenced bank deposit accounts | - | (9,000) | (9,000) | ||
Non cash movements re finance leases | - | (116) | (116) | ||
Non cash movements in the fair value of derivative instruments | 14 | (10) | 7 | ||
Movement in net funds during the period | 2,834 | 5,473 | 7,626 | ||
Opening net funds / (debt) at the beginning of period | 4,905 | (2,808) | (2,808) | ||
Effect of foreign exchange rate changes | 181 | 97 | 87 | ||
Closing net funds at the end of period | 7,920 | 2,762 | 4,905 |
Andrews Sykes Group plc
Consolidated Statement Of Comprehensive Total Income (CSOCTI)
For the 6 months ended 30 June 2011 (unaudited)
6 months ended 30 June 2011 £'000 | 6 months ended 30 June 2010 £'000 | 12 months ended 31 December 2010 £'000 | ||||
Profit for the financial period | 4,116 | 5,225 | 10,562 | |||
Other comprehensive income:
Currency translation differences on foreign currency net investments Defined benefit plan actuarial gains and losses Deferred tax on other comprehensive income
|
417 359 (73)
|
(306) (14) 4
|
(99) 1,964 (530)
| |||
Other comprehensive income for the period net of tax | 703 | (316) | 1,335 | |||
Total comprehensive income for the period | 4,819 | 4,909 | 11,897 | |||
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
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 2010 does not constitute the group's statutory accounts for 2010 as defined in Section 434 of the Companies Act 2006. Statutory accounts for 2010 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 27 September 2011, 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 2010.
Andrews Sykes Group plcNotes to the consolidated interim financial statements For the 6 months ended 30 June 2011 (unaudited)
| ||||||
3 | Revenue
An analysis of the group's revenue is as follows: | |||||
6 months ended 30 June 2011 £'000 | 6 months ended 30 June 2010 £'000 | 12 months ended 31 December 2010 £'000 | ||||
Continuing operationsHire Sales Installations |
21,699 3,909 2,109 |
|
22,566 3,048 1,959 |
45,155 6,654 4,142 | ||
Group consolidated revenue from the sale of goods and provision of services |
| |||||
27,717 | 27,573 | 55,951 | ||||
| ||||||
4 | Taxation | |||||
6 months ended 30 June 2011 £'000 | 6 months ended 30 June 2010 £'000 | 12 months ended 31 December 2010 £'000 | ||||
Current tax UK corporation tax Adjustments in respect of prior periods |
1,348 - |
1,691 2 |
3,261 (49) | |||
Overseas tax Adjustments to overseas tax in respect of prior periods Withholding tax | 1,348 290 - - | 1,693 320 68 - | 3,212 671 19 119 | |||
Total current tax charge | 1,638 | 2,081 | 4,021 | |||
Deferred taxDeferred tax on the origination and reversal of temporary differences Adjustments in respect of prior periods |
(107) - |
|
(191) - |
(213) 4 | ||
Total deferred tax credit | (107) | (191) | (209) | |||
Total tax charge for the financial period attributable to continuing operations | 1,531 | 1,890 | 3,812 | |||
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
4 | Taxation (continued) 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 26.5% (June 2010 and December 2010: 28%) as follows: | |||||
6 months ended 30 June 2011 £'000 | 6 months ended 30 June 2010 £'000 | 12 months ended 31 December 2010 £'000 | ||||
Profit before taxation from continuing and total operations | 5,647 | 7,115 | 14,374 | |||
Tax at the UK effective annualised corporation tax rate of 26.5% (June 2010 and December 2010: 28%) Effects of: Expenses not deductible for tax purposes Capital gain sheltered by capital losses and indexation allowance Utilisation of trading losses brought forward Effects of different tax rates of subsidiaries operating abroad Withholding tax Non-taxable income from other participating interests Effect of change in rate of corporation tax Adjustments to tax charge in respect of previous periods
| 1,496
65
- (15) (65) - - 50 -
| 1,992
44
(25) - (191) - - - 70 | 4,025
130
(115) - (256) 119 (112) 47 (26) | |||
Total tax charge for the financial period | 1,531 | 1,890 | 3,812 | |||
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 26.5%; the reduction to 26% for the tax year ending 31 March 2012 having been substantially enacted on 29 March 2011; and UK deferred tax has been provided at 26% 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 2011 Finance Act that was substantively enacted on 5 July 2011 as this was after the balance sheet date. This Act provided for the further reduction in the rate of UK corporation tax from 26% to 25% for the tax year commencing 1 April 2012. It is estimated that if the rate change from 26% to 25% had been substantively enacted on or before the balance sheet date it would have had the effect of reducing the deferred tax asset recognised at that date by approximately £28,000 and it will reduce the group's future corporation tax charge accordingly.
Andrews Sykes Group plc Notes to the consolidated interim financial statements For the 6 months ended 30 June 2011 (unaudited)
| ||||
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 2011 | ||||
| Continuing earnings £'000 | Number of shares
| ||
Basic earnings/weighted average number of shares | 4,116 | 42,962,764 | ||
Basic earnings per ordinary share (pence) |
9.58p | |||
| ||||
6 months ended 30 June 2010 | ||||
| Continuing earnings £'000 | Number of shares
| ||
Basic earnings/weighted average number of shares
| 5,225 | 44,156,707
| ||
Basic earnings per ordinary share (pence) |
11.83p | |||
| ||||
12 months ended 31 December 2010 | ||||
| Continuing earnings £'000 | Number of shares
| ||
Basic earnings/weighted average number of shares
| 10,562 | 43,670,777
| ||
Basic earnings per ordinary share (pence) |
24.19p | |||
| Diluted earnings per share
The calculation of the diluted earnings per ordinary share in the previous periods is based on the profits and shares as set out in the tables below. There are no dilutive instruments outstanding as at 30 June 2011 and there are no discontinued operations in any period.
| |||
6 months ended 30 June 2010 | ||||
| Continuing earnings £'000 | Number of shares
| ||
Basic earnings/weighted average number of shares Weighted average number of shares under option Number of shares that would have been issued at fair value to satisfy the above options
| 5,225 | 44,156,707 15,000
(12,853)
| ||
Earnings / diluted weighted average number of shares | 5,225 | 44,158,854 | ||
| ||||
Diluted earnings per ordinary share (pence) | 11.83p | |||
Andrews Sykes Group plc Notes to the consolidated interim financial statements For the 6 months ended 30 June 2011 (unaudited)
| ||||
5 | Earnings per share (continued) | |||
| Diluted earnings per share (continued) | ||||
12 months ended 31 December 2010 | ||||
|
Basic earnings/weighted average number of shares Weighted average number of shares under option Number of shares that would have been issued at fair value to satisfy the above options | Continuing earnings £'000 10,562 | Number of shares
43,670,777 15,000
(11,952)
| ||
| Earnings/diluted weighted average number of shares | 10,562 | 43,673,825 | ||
Diluted earnings per ordinary share (pence) | 24.18p | |||
6 | Dividend payments
| |||
The directors have not declared any interim dividends in respect of either the period under review or the 6 month period ended 30 June 2010. On 9 November 2010 the directors declared an interim dividend of 11.1 pence per ordinary share and the total amount of £4,800,000 was paid to shareholders on the register as at 19 November 2010 on 10 December 2010.
| ||||
Andrews Sykes Group plc Notes to the consolidated interim financial statements For the 6 months ended 30 June 2011 (unaudited)
| ||||||
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 2011 the group had a net defined benefit pension scheme surplus, calculated in accordance with IAS 19 using the assumptions as set out below, of £2,411,000 (June 2010: £22,000; 31 December 2010: £1,990,000). The asset has been recognised in the financial statements as at 30 June 2011 and 31 December 2010 as the directors are satisfied that it is recoverable in accordance with IFRIC14. The asset was not recognised as at 30 June 2010 on the grounds of materiality.
The pension scheme trustees are currently carrying out a full actuarial funding valuation, the results of which have not yet been finalised and agreed with the company. The trustees normally have until 31 March 2012 to complete this process. In the meantime the group continues to make contributions in accordance with the previously agreed schedule of contributions of £10,000 per month to cover expenses of the scheme. Assumptions used to calculate the scheme surplus
The last full actuarial valuation was carried out as at 31 December 2007. 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 2011 | 30 June 2010 | 31 December 2010 | ||||
Rate of increase in pensionable salaries Rate of increase in pensions in payment Discount rate applied to scheme liabilities Inflation assumption - RPI Inflation assumption - CPI for the first 6 years Inflation assumption - CPI after the first 6 years | N/A 3.40% 5.50% 3.60% 2.40% 2.40% | N/A 3.05% 5.35% 3.15% N/A N/A | N/A 3.30% 5.50% 3.50% 2.50% 3.00% | |||
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; in prior periods it was assumed that such pension increases would be linked to RPI. It has been assumed in all periods that all other pension increases will be linked to RPI.
Assumptions regarding future mortality experience are set based on advice in accordance with published statistics. The current mortality table used is PA92YOBMC+2 at all the above ends.
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 2011 | 30 June 2010 | 31 December 2010 | ||||
Male, current age 45 Female, current age 45 | 21.4 years 24.1 years | 21.3 years 24.1 years | 21.3 years 24.1 years | |||
Andrews Sykes Group plc Notes to the consolidated interim financial statements For the 6 months ended 30 June 2011 (unaudited)
| ||||||
7
| Retirement benefit obligations - Defined benefit pension scheme (continued) 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 2011 £'000 | 30 June 2010 £'000 | 31 December 2010 £'000 | ||||
Total fair value of plan assets Present value of defined benefit funded obligation calculated in accordance with stated assumptions | 31,149 (28,738) | 28,926
(28,904) | 30,733
(28,743) | |||
Surplus in the scheme calculated in accordance with stated assumptions Net pension asset not recognised |
2,411 - |
22 (22)
|
1,990 -
| |||
Pension asset recognised in the balance sheet | 2,411 | - | 1,990 | |||
Andrews Sykes Group plc Notes to the consolidated interim financial statements For the 6 months ended 30 June 2011 (unaudited)
| |||||
7 | Retirement benefit obligations - Defined benefit pension scheme (continued)
The movement in the fair value of the scheme's assets over the reporting period was as follows:
| ||||
30 June 2011 £'000 | 30 June 2010 £'000 | 31 December 2010 £'000 | |||
Fair value of plan assets at the start of the period Expected return on plan assets Actuarial gains / (losses) recognised in the CSOCTI Employer contributions - normal Benefits paid | 30,733 774 157 60 (575) | 28,936 770 (221) 60 (619) | 28,936 1,546 1,309 120 (1,178) | ||
Fair value of plan assets at the end of the period | 31,149 | 28,926 | 30,733 | ||
The movement in the present value of the defined benefit obligation during the period was as follows:
| |||||
30 June 2011 £'000 | 30 June 2010 £'000 | 31 December 2010 £'000 | |||
Opening present value of defined benefit funded obligation calculated in accordance with stated assumptions Interest on defined benefit obligation Actuarial gain / (loss) recognised in the CSOCTI calculated in accordance with stated assumptions Benefits paid |
(28,743) (772)
202 575 |
(28,862) (816)
155 619 |
(28,862) (1,640)
581 1,178 | ||
Closing present value of defined benefit funded obligation calculated in accordance with stated assumptions Net pension asset not recognised |
(28,738) - |
(28,904) (22) |
(28,743) - | ||
Present value of defined benefit funded obligation at the end of the period |
(28,738) |
(28,926) |
(28,743) | ||
Amounts recognised in the income statement
The amounts credited / (charged) in the income statement were:
| |||||
30 June 2011 £'000 | 30 June 2010 £'000 | 31 December 2010 £'000 | |||
Expected return on pension scheme assets credited within finance income Interest on pension scheme liabilities charged within finance costs |
774
(772) |
770
(816) |
1,546
(1,640) | ||
Net pension interest credit / (charge) Settlements and curtailments | 2 - | (46) - | (94) - | ||
Net pension credit / (charge) in the income statement | 2 | (46) | (94) | ||
Andrews Sykes Group plc Notes to the consolidated interim financial statements For the 6 months ended 30 June 2011 (unaudited)
| ||||||||
7 | Retirement benefit obligations - Defined benefit pension scheme (continued)
Actuarial gains and losses recognised in the consolidated statement of comprehensive total income (CSOCTI)
The amounts credited / (charged) in the CSOCTI were:
| |||||||
30 June 2011 £'000 | 30 June 2010 £'000 | 31 December 2010 £'000 | ||||||
Actual return less expected return on scheme assets Experience gains and losses arising on plan obligation Changes in demographic and financial assumptions underlying the present value of plan obligations | 157 (65)
267 | (221) 772
( 617) | 1,309 498
83 | |||||
Actuarial gain / (loss) calculated in accordance with stated assumptions |
359 |
(66) |
1,890 | |||||
Pension asset not recognised Reverse provision re non-recognition of pension scheme asset | -
- | (22)
74 | -
74 | |||||
Actuarial gain /(loss) recognised in the CSOCTI | 359 | (14) | 1,964 | |||||
Cumulative actuarial loss recognised in the CSOCTI | (2,127) | (4,464) | (2,486) | |||||
8 | Called-up share capital | |||||||
30 June 2011 £'000 | 30 June 2010 £'000 | 31 December 2010 £'000 | ||||||
Issued and fully paid: 42,699,588 ordinary shares of one pence each (June 2010 43,358,435; December 2010 43,115,804 ordinary shares of one pence each) |
427 |
434 |
431 | |||||
During the period the company bought back 431,216 shares for cancellation for a total consideration of £925,748 (June 2010 909,930 shares for a total consideration of £1,052,976; December 2010 1,152,561 shares for a total consideration of £1,371,354). The company issued 15,000 shares (June 2010 and December 2010 Nil) to satisfy the exercise of share options as set out below.
The company has one class of ordinary shares which carry no right to fixed income.
At 30 June 2011 cash options to subscribe for ordinary shares under the executive share option scheme were held as follows: | ||||||||
Number of one pence ordinary shares | ||||||||
Date of Grant | Date normally exercisable | Subscription price per share | 30 June 2011 | 30 June 2010 | 31 December 2010 | |||
November 2001 | November 2004 to October 2011 | 89.5 pence | - | 15,000 | 15,000 | |||
During the period 15,000 share options were exercised at a price of 89.5 pence per share (June 2010 and December 2010: Nil options). Accordingly 15,000 one pence ordinary shares were issued to satisfy these options at a premium of 88.5 pence per share. No share options were granted, forfeited or expired during either the current or previous financial periods.
Andrews Sykes Group plc Notes to the consolidated interim financial statements For the 6 months ended 30 June 2011 (unaudited)
| ||||||
9 | Cash generated from operations | |||||
6 months ended 30 June 2011 £'000 | 6 months ended 30 June 2010 £'000 | 12 months ended 31 December 2010 £'000 | ||||
Profit for the period attributable to equity shareholders Adjustments for: Taxation charge Finance costs Finance income Inter company foreign exchange gains and losses Income from other participating interests Profit on the sale of property, plant and equipment Depreciation Excess of normal pension contributions compared with service cost | 4,116
1,531 974 (888) 197 - (238) 2,092
(60) | 5,225
1,890 1,103 (843) (395) - (410) 2,281
(60)
| 10,562
3,812 2,144 (1,844) (168) (400) (624) 4,239
(120)
| |||
Cash generated from operations before movements in working capital
|
7,724 |
8,791 |
17,601 | |||
(Increase) / decrease in stocks Decrease / (increase) in trade and other receivables (Decrease) / increase in trade and other payables Decrease in provisions
| (377) 2,148 (705) (7) | 374 (428) 126 (7) | 126 (2,468) 2,517 (13) | |||
Cash generated from operations | 8,783 | 8,856 | 17,763 | |||
| ||||||
10 | Analysis of net funds | |||||
30 June 2011 £'000 | 30 June 2010 £'000 | 31 December 2010 £'000 | ||||
Cash and cash equivalents per cash flow statement | 22,632 | 23,716 | 25,709 | |||
Bank loans Obligations under finance leases Derivative financial instruments |
(14,000) (678) (34) |
(20,000) (889) (65) |
(20,000) (756) (48) | |||
Gross debt | (14,712) | (20,954) | (20,804) | |||
Net funds | 7,920 | 2,762 | 4,905 | |||
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 | |||||