Last checked at 25 Sep 2008 07:00
Andrews Sykes Group plc
Interim Financial Statements for the six months to 30 June 2008
Chairman's Statement
Overview and financial highlights
I am pleased to be able to report that, despite a general economic slowdown in the UK, the group's results for the first half of 2008 show a marked improvement compared with the same period last year. Management continue to show initiative and sound judgement developing markets that are not only less weather dependent than our traditional products and services but are also less reliant on the market sectors most affected by the current UK slowdown.
The group's diverse base of operations predominantly across the UK, Northern Europe and the Middle East together with a low level of imports into the UK from Europe mean that the current weakening of Sterling against, most notably, the Euro has not had a significant impact on the group's profitability in the current period. In addition the group has the benefit of interest rate caps covering the majority of the bank loans which have been effective in protecting it from the increase in the cost of borrowing seen by many over the past months.
The financial highlights of the period compared with the first half of 2007 are as follows:
| 2008 £'000 | 2007 £'000 | |
| Revenue | 33,873 | 27,185 |
| EBITDA* | 10,550 | 7,569 |
| Operating profit | 9,019 | 4,731 |
| Profit after tax for the financial period | 6,169 | 2,857 |
| Basic earnings per share | 13.85 pence | 6.41 pence |
| Net cash inflow from operating activities | 5,854 | 3,414 |
| Equity dividends paid | 14,970 | - |
| Closing net debt | 22,182 | 14,242 |
| * Earnings Before Interest, Taxation, Depreciation, Amortisation, Impairment provisions and exceptional items as reconciled on the face of the income statement |
Operations review
Our main UK trading subsidiary, Andrews Sykes Hire, continues to perform well. It continues to develop its business in non seasonal hire markets, particularly through its specialist hire division. Its traditional products have also performed well, especially the pumping division, which has benefited both from the deliberate decision to enter into longer term contracts guaranteeing revenue income as well as unusually wet conditions and the opportunities so provided.
Our overseas operations in the Middle East and Northern Europe both continue to expand and further develop their market sectors. This is particularly so in the case of the Middle East with management taking full advantage of the level of work currently being undertaken in this region.
Dividend and pension scheme payments
During the current half year two interim dividends were paid that in total amounted to £15 million. Clearance was obtained both from the pensions regulator and the pension scheme trustees and as part of this process a special one-off payment of £1.7 million was made to the pension scheme. Further details of these payments are given in note 6 to these interim financial statements.
Prospects
The summer in the UK and Northern Europe has been very similar to 2007 with disappointing low average temperatures that have done little to stimulate the demand for our air conditioning hire business. Nevertheless management initiatives and the move to less weather related products continue to be effective and we currently anticipate that the second half of 2008 will be in line with last year.
JG Murray
Chairman
24 September 2008
Andrews Sykes Group plc
Consolidated Income Statement
For the 26 weeks ended 30 June 2008 (unaudited)
| 26 weeks ended 30 June 2008 £'000 | 26 weeks ended 30 June 2007 (as restated)** £'000 | 52 weeks ended 29 December 2007 £'000 | |||
| Continuing operations Revenue Cost of sales | 33,873 (15,552) | 27,185 (12,696) | 57,846 (25,816) | ||
| Gross profit | 18,321 | 14,489 | 32,030 | ||
| Distribution costs | (4,959) | (4,250) | (9,751) | ||
| Administrative expenses - Normal | (4,872) | (4,574) | (8,095) | ||
| - Exceptional | 529 | (934) | (911) | ||
| - Total | (4,343) | (5,508) | (9,006) | ||
| Operating profit | 9,019 | 4,731 | 13,273 | ||
| EBITDA* Depreciation and impairment losses Profit on the sale of plant and equipment | 10,550 (2,551) 491 | 7,569 (2,255) 351 | 18,173 (4,463) 474 | ||
| Normalised operating profit Profit on the sale of property Pension curtailment charge | 8,490 529 - | 5,665 - (934) | 14,184 - (911) | ||
| Operating profit | 9,019 | 4,731 | 13,273 | ||
| Income from other participating interests Finance income Finance costs | - 476 (1,025) | - 430 (860) | 209 624 (1,728) | ||
| Profit before taxation Taxation | 8,470 (2,301) | 4,301 (1,444) | 12,378 (3,829) | ||
| Profit after tax for the financial period | 6,169 | 2,857 | 8,549 | ||
| There were no discontinued operations in any of the above periods. Earnings per share from continuing operations Basic (pence) Diluted (pence) Dividends paid per equity share (pence) | 13.85p 13.85p 33.60p | . 6.41p 6.41p -p | 19.19p 19.19p -p | ||
* Earnings Before Interest, Taxation, Depreciation, Amortisation, Impairment provisions and exceptional costs.
** Finance income and finance costs have been restated on a consistent basis with the 52 weeks ended 29 December 2007
Andrews Sykes Group plc
Consolidated Balance Sheet
As at 30 June 2008 (unaudited)
| 30 June 2008 £'000 | 30 June 2007 £'000 | 29 December 2007 £'000 | |||
| Non-current assets Property, plant and equipment Lease prepayments Trade investments Deferred tax asset Derivative financial instruments | 15,489
93 164 831 100 | 15,340
224 164 2,361 161 |
15,668
96 164 1,404 13 | ||
| 16,677 | 18,250 | 17,345 | |||
| Current assets Stocks Trade and other receivables Cash and cash equivalents Assets held for sale |
5,904 17,447 12,870 405 |
5,830 15,318 11,908 - |
5,742 16,317 13,102 494 | ||
| 36,626 | 33,056 | 35,655 | |||
| Current liabilities Trade and other payables Current tax liabilities Bank loans Obligations under finance leases Provisions |
(11,899) (1,633) (5,000) (252) - |
(14,436) (1,343) (5,000) (233) (15) |
(11,371) (1,370) (5,000) (415) (15) | ||
| (18,784) | (21,027) | (18,171) | |||
| Net current assets | 17,842 | 12,029 | 17,484 | ||
| Total assets less current liabilities | 34,519 | 30,279 | 34,829 | ||
| Non-current liabilities Bank loans Obligations under finance leases Retirement benefit obligations Derivative financial instruments |
(29,000) (900) (432) - |
(20,000) (1,078) (2,190) - |
(19,000) (1,006) (1,238) (38) | ||
| (30,332) | (23,268) | (21,282) | |||
| Net assets | 4,187 | 7,011 | 13,547 | ||
| Equity Share capital Retained earnings Translation reserve Other reserves
|
446 2,675 834 222 |
446 6,701 (368) 222 |
446 12,595 274 222 | ||
| Surplus attributable to equity holders of the parent | 4,177 | 7,001 | 13,537 | ||
| Minority interest | 10 | 10 | 10 | ||
| Total equity | 4,187 | 7,011 | 13,547 | ||
Andrews Sykes Group plc
Consolidated Cash Flow Statement
For the 26 weeks ended 30 June 2008 (unaudited)
| 26 weeks ended 30 June 2008 £'000 | 26 weeks ended 30 June 2007 £'000 | 52 weeks ended 29 December 2007 £'000 | |||
| Cash flows from operating activities Cash generated from operations Interest paid Net UK corporation tax paid Net withholding tax (paid) / recovered Overseas tax paid |
7,821 (846) (802) (70) (249) |
5,259 (211) (1,352) (69) (213) |
11,211 (1,115) (2,202) 50 (877) | ||
| Net cash inflow from operating activities | 5,854 | 3,414 | 7,067 | ||
| Investing activities Dividends received from participating interests (trade investments) Disposal costs paid less consideration received on prior year disposals Sale of property, plant and equipment Purchase of property, plant & equipment Interest received |
- -
636 (2,458) 405 |
- 295
389 (2,408) 136 |
209 295
778 (5,346) 440 | ||
| Net cash outflow from investing activities | (1,417) | (1,588) | (3,624) | ||
| Financing activities Loan repayments New loans raised Finance lease capital repayments Equity dividends paid |
(24,000) 34,000 (195) (14,970) | - - (69) - | (1,000) - (141) - | ||
| Net cash outflow from financing activities | (5,165) | (69) | (1,141) | ||
| Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of period Effect of foreign exchange rate changes | (728) 13,102 496 | 1,757 10,190 (39) | 2,302 10,190 610 | ||
| Cash and cash equivalents at end of period | 12,870 | 11,908 | 13,102 | ||
| Reconciliation of net cash flow to movement in net debt in the period Net (decrease) / increase in cash and cash equivalents Cash outflow from loan and finance lease repayments Cash inflow from the increase in loans Non cash movements re finance leases Non cash movements in the fair value of derivative instruments |
(728) 24,195 (34,000) 74 125 | 1,757 69 - - 138 | 2,302 1,141 - (182) (48) | ||
| Movement in net debt during the period Opening net debt at the beginning of period Effect of foreign exchange rate changes | (10,334) (12,344) 496 | 1,964 (16,167) (39) | 3,213 (16,167) 610 | ||
| Closing net debt at the end of period | (22,182) | (14,242) | (12,344) | ||
Andrews Sykes Group plc
Consolidated Statement of Recognised Income and Expense
For the 26 weeks ended 30 June 2008 (unaudited)
| 26 weeks ended 30 June 2008 £'000 | 26 weeks ended 30 June 2007 £'000 | 52 weeks ended 29 December 2007 £'000 | |||
| Actual return less expected return on pension scheme assets Experience gains and losses arising on plan obligation Changes in demographic and financial assumptions underlying the present value of plan obligations Currency translation differences on foreign currency net investments Deferred tax on items posted directly to equity | (1,759) - 205 560 435 | - - - (46) (11) | 154 424 (279) 595 (107) | ||
| Net (expense) / income recognised directly in equity Profit for the period attributable to equity shareholders | (559) 6,169 | (57) 2,857 | 787
8,549 | ||
| Total recognised income and expense for the period attributable to equity holders of the parent |
5,610 |
2,800 | 9,336 |
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 26 weeks ended 30 June 2008 (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 1985 to 2006.
The information for the 52 weeks ended 29 December 2007 does not constitute the group's statutory accounts for 2007 as defined in Section 240 of the Companies Act 1985. Statutory accounts for 2007 have been delivered to the Registrar of Companies. The Auditor's report on those accounts was unqualified and did not contain statements under Section 273(2) or (3) of the Companies Act 1985. These interim financial statements, which were approved by the Board of Directors on 24 September 2008, have not been audited or reviewed by the Auditors.
These interim financial statements have 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 2007.
3 Revenue
An analysis of the group's revenue is as follows:
| 26 weeks ended 30 June 2008 £'000 | 26 weeks ended 30 June 2007 £'000 | 52 weeks ended 29 December 2007 £'000 | |
| Continuing Operations | |||
| Hire Sales Installations | 26,311 4,926 2,636 | 19,693 4,084 3,408 | 43,579 8,043 6,224 |
| Group consolidated revenue from the sale of goods and services Income from other participating interests Finance income | 33,873 - 476 | 27,185 - 430 | 57,846 209 624 |
| Gross consolidated revenue | 34,349 | 27,615 | 58,679 |
4 Pension curtailment charge
| 26 weeks ended 30 June 2008 £'000 | 26 weeks ended 30 June 2007 £'000 | 52 weeks ended 29 December 2007 £'000 | |
| Pension curtailment charge | - | (934) | (911) |
Last year every member of the Andrews Sykes Group Defined Benefit Pension Scheme (ASGPS) was given the opportunity of transferring their accrued rights to an independent pension provider of their choice. An incentive equal to 40% of the normally available transfer value was offered and this could either be paid directly to the member, as a cash bonus, or to their new pension provider, via the ASGPS, as an enhanced transfer value (ETV). As well as the presentations made by independent financial advisors, the group paid for independent financial advice to be made available to each member.
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.
| 26 weeks to 30 June 2008 | |||
| Continuing earnings £'000 | Number of shares | ||
| Basic earnings/weighted average number of shares | 6,169 | 44,552,865 | |
| Basic earnings per ordinary share (pence) | 13.85p | ||
| 26 weeks to 30 June 2007 | |||
| Continuing earnings £'000 | Number of shares | ||
| Basic earnings/weighted average number of shares | 2,857 | 44,552,715 | |
| Basic earnings per ordinary share (pence) | 6.41p | ||
| 52 weeks to 29 December 2007 | |||
| Continuing earnings £'000 | Number of shares | ||
| Basic earnings/weighted average number of shares | 8,549 | 44,552,790 | |
| Basic earnings per ordinary share (pence) | 19.19p | ||
Adjusted basic earnings per share excluding profit on sale of property and pension curtailment charge
The basic figures excluding the profit on sale of property and the pension curtailment charge 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.
| 26 weeks to 30 June 2008 | |||
| Continuing earnings £'000 | Number of shares | ||
| Basic earnings/weighted average number of shares | 6,169 | 44,552,865 | |
| Less profit on the sale of property net of tax | (517) | ||
| Adjusted basic earnings/weighted average number of shares | 5,652 | 44,552,865 | |
| Adjusted basic earnings per ordinary share (pence) excluding profit on sale of property | 12.69p | ||
Adjusted basic earnings per share excluding profit on sale of property and pension curtailment charge
| 26 weeks to 30 June 2007 | |||
| Continuing earnings £'000 | Number of shares | ||
| Basic earnings/weighted average number of shares Add back pension curtailment charge net of tax | 2,857 654 | 44,552,715 | |
| Adjusted basic earnings/weighted average number of shares | 3,511 | 44,552,715 | |
| Adjusted basic earnings per ordinary share (pence) excluding pension curtailment charge | 7.88p | ||
| 52 weeks to 29 December 2007 | |||
| Continuing earnings £'000 | Number of shares | ||
| Basic earnings/weighted average number of shares | 8,549 | 44,552,790 | |
| Add back pension curtailment charge net of tax | 638 | ||
| Adjusted basic earnings/weighted average number of shares | 9,187 | 44,552,790 | |
| Adjusted basic earnings per ordinary share (pence) excluding pension curtailment charge | 20.62p | ||
Diluted earnings per share
The calculation of the diluted earnings per ordinary share is based on the profits and shares as set out in the tables below. There are no discontinued operations in any period. The share options have a dilutive effect for the period calculated as follows:
| 26 weeks to 30 June 2008 | |||
| 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 be issued at fair value to satisfy above options | 6,169 | 44,552,865 15,000 (11,966) | |
| Earnings/diluted weighted average number of shares | 6,169 | 44,555,899 | |
| Diluted earnings per ordinary share (pence) | 13.85p | ||
| 26 weeks to 30 June 2007 | |||
| 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 be issued at fair value to satisfy above options | 2,857 | 44,552,715
15,000 (8,001) | |
| Earnings/diluted weighted average number of shares | 2,857 | 44,559,714 | |
| Diluted earnings per ordinary share (pence) | 6.41p | ||
| 52 weeks to 29 December 2007 | |||
| 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 be issued at fair value to satisfy above options | 8,549 | 44,552,790
15,000 (8,065) | |
| Earnings/diluted weighted average number of shares | 8,549 | 44,559,725 | |
| Diluted earnings per ordinary share (pence) | 19.19p | ||
Adjusted diluted earnings per share excluding profit on sale of property and pension curtailment charge
The calculation of the diluted earnings per ordinary share excluding the profit on sale of property and the pension curtailment charge is based on the profits and shares as set out in the table below. There are no discontinued operations in any period. The share options have a dilutive effect for the period calculated as follows:
| 26 weeks to 30 June 2008 | |||
| Continuing earnings £'000 | Number of shares | ||
| Basic earnings/weighted average number of shares Less profit on the sale of property net of tax Weighted average number of shares under option Number of shares that would be issued at fair value to satisfy above options | 6,169 (517) | 44,552,865 15,000 (11,966) | |
| Adjusted earnings/diluted weighted average number of shares | 5,652 | 44,555,899 | |
| Adjusted diluted earnings per ordinary share (pence) excluding profit on sale of property | 12.69p | ||
| 26 weeks to 30 June 2007 | |||
| Continuing earnings £'000 | Number of shares | ||
| Basic earnings/weighted average number of shares Add back pension curtailment charge net of tax Weighted average number of shares under option Number of shares that would be issued at fair value to satisfy above options | 2,857 654 | 44,552,715 15,000 (8,001) | |
| Adjusted earnings/diluted weighted average number of shares | 3,511 | 44,559,714 | |
| Adjusted diluted earnings per ordinary share (pence) excluding pension curtailment charge | 7.88p | ||
| 52 weeks to 29 December 2007 | |||
| Continuing earnings £'000 | Number of shares | ||
| Basic earnings/weighted average number of shares Add back pension curtailment charge net of tax Weighted average number of shares under option Number of shares that would be issued at fair value to satisfy above options | 8,549 638 | 44,552,790 15,000 (8,065) | |
| Adjusted earnings/diluted weighted average number of shares | 9,187 | 44,559,725 | |
| Adjusted diluted earnings per ordinary share (pence) excluding pension curtailment charge | 20.62p | ||
6 Dividend payments and loan restructuring
No interim dividends were declared or paid during either of the previous financial periods.
The directors declared and paid the following interim dividends in respect of the 52 weeks ending 31 December 2008 during the period under review:
| Pence per share 6.50p 27.10p | £'000 2,896 12,074 | |
| Interim dividend declared on 26 March 2008 and paid to shareholders on the register as at 4 April 2008 on 18 April 2008 | ||
| Interim dividend declared on 24 April 2008 and paid to shareholders on the register as at 2 May 2008 on 16 May 2008 | ||
| 33.60p | 14,970 |
The above interim dividends have been charged against retained earnings during the current period.
Clearance was obtained from the pensions regulator and trustees of the Andrews Sykes Group Defined Benefit Pension Scheme (ASGPS) prior to the payment of the second interim dividend on 16 May 2008. As part of that process it was agreed that a special contribution of £1.7 million would be paid by the company to the ASGPS and this is shown in note 7 below.
The above dividend and pension scheme payments were mainly financed by net additional bank loans of £10 million comprising new loan draw-downs of £34 million less loan repayments of £24 million. The interest rates and covenants on the new loans are similar to those in the previous agreements and interest rate caps continue to be held to limit the group's exposure to increases in LIBOR.
7 Retirement benefit obligations - Defined benefit pension scheme
The group closed the UK group defined benefit pension scheme to future accrual as at 31 December 2002. The assets of the defined benefit pension scheme continue to be held in a separate trustee administered fund.
The group are making additional contributions to remove the funding deficit in the group pension scheme. These contributions include both one-off and regular monthly payments, £125,000 per month in the period under review, and are agreed in advance with the trustees of the pension scheme.
Assumptions used to calculate the scheme deficit
A full actuarial valuation has been carried out as at 31 December 2007 and this was used as a basis for calculating the deficit as at 29 December 2007. In view of the significant changes in market conditions between the end of December 2007 and 30 June 2008, the valuation has been further updated by a qualified independent actuary to take into account current market conditions.
The major assumptions used in this valuation to determine the present value of the scheme's defined benefit obligation were as follows:
| Rate of increase in pensionable salaries Rate of increase in pensions in payment Discount rate applied to scheme liabilities Inflation assumption | 30 June 2008 N/A 4.00% 6.60% 4.10% | 30 June 2007 N/A 3.00% 5.40% 3.00% | 29 December 2007 N/A 3.40% 5.90% 3.40% |
Assumptions regarding future mortality experience are set based on advice in accordance with published statistics. The current mortality table used is PA92YOBMC+2 (29 December 2007: PA92YOBMC+2, 30 June 2007: PA92C2020)
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 2008 | 30 June 2007 | 29 December 2007 | |
| Male, current age 45 Female, current age 45 | 21.2 years 24.0 years | 19.8 years 22.8 years | 21.2 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 2008 £'000 | 30 June 2007 £'000 | 29 December 2007 £'000 | |
| Total fair value of plan assets Present value of defined benefit funded obligation | 26,794 (27,226) | 24,557 (26,747) | 25,913 (27,151) |
| Deficit in the scheme - pension liability recognised in the balance sheet | (432) | (2,190) | (1,238) |
The movements in the fair value of the scheme's assets over the reporting period are as follows:
| 30 June 2008 £'000 | 30 June 2007 £'000 | 29 December 2007 £'000 | |
| Fair value of plan assets at the start of the period Expected return on plan assets Actuarial (losses)/gains recognised in the SORIE Employer contributions - normal Employer contributions - special (note 6) Employer contributions - transfer value exercise Benefits paid Settlements and curtailments | 25,913 692 (1,759) 750 1,700 - (502) - | 33,445 1,050 - 750 - 2,296 (402) (12,582) | 33,445 1,926 154 1,500 - 1,880 (1,269) (11,723) |
| Fair value of plan assets at the end of the period | 26,794 | 24,557 | 25,913 |
Employer contributions in respect of the transfer value exercise and settlements and curtailments were both estimated at 30 June 2007 and finalised at 29 December 2007.
The movement in the present value of the defined benefit obligation during the period was as follows:
| 30 June 2008 £'000 | 30 June 2007 £'000 | 29 December 2007 £'000 | |
| Present value of defined benefit funded obligation at the beginning of the period Interest on defined benefit obligation Actuarial gain /(loss) recognised in the SORIE Benefits paid Settlements and curtailments | (27,151) (782) 205 502 - | (40,022) (1,061) - 402 13,934 | (40,022) (1,888) 145 1,269 13,345 |
| Present value of defined benefit funded obligation at the end of the period | (27,226) | (26,747) | (27,151) |
Amounts recognised in the income statement
The amounts (charged) / credited in the income statement were:
| 30 June 2008 £'000 | 30 June 2007 £'000 | 29 December 2007 £'000 | |
| Expected return on pension scheme assets Interest on pension scheme liabilities | 692 (782) | 1,050 (1,061) | 1,926 (1,888) |
| Net pension interest (charge) / income Settlements and curtailments | (90) - | (11) 1,352 | 38 1,622 |
| (90) | 1,341 | 1,660 |
8 Share capital
| 30 June 2008 £'000 | 30 June 2007 £'000 | 29 December 2007 £'000 | |
| Authorised: 1,398,170,943 ordinary shares of one pence each (30 June 2007 and 29 December 2007: 1,398,170,943 ordinary shares of one pence each) | 13,982 | 13,982 | 13,982 |
| Issued and fully paid: 44,552,865 ordinary shares of one pence each (30 June 2007 and 29 December 2007: 44,552,865 ordinary shares of one pence each) | 446 | 446 | 446 |
During the period the company did not buy back any shares for cancellation (26 weeks ended 30 June 2007: Nil shares).
The company has one class of ordinary shares which carry no right to fixed income.
At 30 June 2008 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 2008 | 30 June 2007 | 29 December 2007 |
| November 2001 | November 2004 to October 2011 | 89.5 pence | 15,000 | 15,000 | 15,000 |
No share options were granted, forfeited or expired during either the current or previous financial periods.
No share options were exercised during the period (26 weeks ended 30 June 2007: Nil options).
9 Cash generated from operations
| 26 weeks ended 30 June 2008 £'000 | 26 weeks ended 30 June 2007 £'000 | 52 weeks ended 29 December 2007 £'000 | |
| Profit for the period attributable to equity shareholders Adjustments for: Taxation charge Pension curtailment charge Finance costs Finance income Income from other participating interests Profit on the sale of property, plant and equipment Depreciation and amortisation Impairment losses Excess of normal pension contributions compared with service cost Special pension contributions | 6,169 2,301 - 1,025 (476) - (1,020) 2,551 - (750) (1,700) | 2,857 1,444 934 860 (430) - (351) 2,224 31 (750) (868) | 8,549 3,829 911 1,728 (624) (209) (474) 4,432 31 (1,500) (4,279) |
| Cash generated from operations before movements in working capital Increase in stocks (Increase) / decrease in trade and other receivables Increase in trade and other payables Decrease in provisions | 8,100 (162) (603) 501 (15) | 5,951 (1,493) 760 50 (9) | 12,394 (1,406) (350) 582 (9) |
| Cash generated from operations | 7,821 | 5,259 | 11,211 |
10 Analysis of net debt
| 30 June 2008 £'000 | 30 June 2007 £'000 | 29 December 2007 £'000 | |
| Cash and cash equivalents per cash flow statement | 12,870 | 11,908 | 13,102 |
| Derivative financial instruments | 100 | 161 | 13 |
| Financial assets | 100 | 161 | 13 |
| Bank loans | (34,000) | (25,000) | (24,000) |
| Obligations under finance leases | (1,152) | (1,311) | (1,421) |
| Derivative financial instruments | - | - | (38) |
| Financial liabilities | (35,152) | (26,311) | (25,459) |
| Net debt | (22,182) | (14,242) | (12,344) |
11 Distribution of interim financial statements
Following a change in regulations, 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.