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28 Aug 2008 07:00
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2008Β HALF-YEARΒ ANNOUNCEMENT
MolinsΒ PLC, the international specialist engineering company, announces its results for theΒ six monthsΒ endedΒ 30 June 2008.
|
6 monthsΒ toΒ 30 JuneΒ 2008Β |
6 monthsΒ toΒ 30 JuneΒ 2007Β |
12 monthsΒ toΒ 31 DecΒ 2007Β |
|
|
Sales Underlying operating profit* Profit before tax - continuing operationsProfitΒ for the period Underlying earnings per share* BasicΒ earningsΒ per share DividendsΒ per shareCashΒ (used in)/generated from operations before reorganisation - continuing operations Net debt |
Β£45.2mΒ Β£0.8mΒ Β£2.1mΒ Β£2.3mΒ 1.5p 12.0pΒ Β 2.5pΒ Β Β£(3.4)m Β£14.4mΒ |
Β£41.1mΒ Β£1.0mΒ Β£1.9mΒ Β£1.9mΒ 2.7p 10.1pΒ Β 2.0pΒ Β Β£2.7mΒ Β£13.2mΒ |
Β£89.3mΒ Β£5.4mΒ Β£7.4mΒ Β£7.9mΒ 18.0pΒ Β 42.0pΒ Β 7.0pΒ Β Β£8.8mΒ Β£7.6mΒ |
*Β Continuing operations beforeΒ net pension creditΒ ofΒ Β£1.7mΒ (30 June 2007: Β£1.4m;Β 31 DecemberΒ 2007:Β Β£3.0m)
Sales increase of 10%
UnderlyingΒ profit marginally downΒ on previous year
Expectation of strongly secondΒ half weighted year
Interim dividend increase of 25% to 2.5p
Option period for sale of Saunderton site extended to 18 December
Dick Hunter,Β Chief Executive, commented:
"The Group remains focused on the organic development ofΒ itsΒ businesses, throughΒ targetedΒ product development, excellence in customer serviceΒ and ongoing operational efficiency improvements.
"Overall, the Group is expected to produce a much stronger second half performance than in the first half, as has been the pattern over the last few years. Tobacco Machinery is expected to deliver sales in theΒ fullΒ yearΒ at similar levels toΒ last year, but as previously indicated this is unlikely to reflect as favourable a mix as in 2007. Packaging Machinery is expected to perform considerably more strongly in the second half of the year compared with the first half, and to show progress in the year as a whole. Scientific Services is also well placed to continue its progress."
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Enquiries: |
MolinsΒ PLC Dick Hunter,Β Chief Executive;Β David Cowen, Group Finance Director |
Tel: 020 7638 9571 |
|
Issued by: |
Citigate Dewe Rogerson Angharad Couch |
Tel: 020 7638 9571 |
Β Β Interim Management Report
Cautionary statement
This Interim Management Report (IMR) has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other reason.
The IMR contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report and such information should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.
This IMR has been prepared for the Group as a whole and therefore emphasises those matters which are significant to Molins PLC and its subsidiary undertakings when viewed as a whole.
Group structure and strategy
The Group operates through a number of businesses focused on providing high performance equipment and services for the production,Β packagingΒ and analysisΒ of consumer products. Molins Tobacco Machinery designs, manufactures, markets and services specialist machinery for the tobacco industry from its bases in theΒ UK,Β US,Β Brazil,Β SingaporeΒ andΒ CzechΒ Republic. The Packaging Machinery division, which supplies engineering services and capital equipment, operates through four businesses based in theΒ UK, theΒ NetherlandsΒ andΒ Canada. The Scientific Services division comprises two businesses, one of which supplies process and quality control instruments for the tobacco industry and the other being an independent tobacco and smoke constituent analytical laboratory, with main facilities in theΒ UKΒ and US.
The Group remains focused on the organic development of these businesses, throughΒ targetedΒ product development, excellence in customer serviceΒ and ongoing operational efficiency improvements.
Operating results
Group sales in the six months toΒ 30 June 2008Β were Β£45.2m (2007: Β£41.1m). Profit for the period was Β£2.3m (2007: Β£1.9m) and basic earnings per share amounted to 12.0p (2007: 10.1p). Underlying operating profit (continuing operations before net pension credit) was Β£0.8m (2007: Β£1.0m) and underlying earnings per share amounted to 1.5p (2007: 2.7p).
Tobacco Machinery
Sales increased in the period by 15% to Β£17.2m (2007: Β£14.9m), with an increase in original and rebuild equipment sales more than compensating for a small and expected reduction in sales of spare parts and other aftermarket services. Operating profit in the period reduced to Β£0.4m (2007: Β£1.2m). Lower profit marginsΒ wereΒ achieved for equipment sales than in the aftermarket, and the impact of a strengthening currency in theΒ CzechΒ RepublicΒ has increased Czech product costs despite continued improvements in the efficiency of the division's main manufacturing plant. Overall, order intake was ahead of last year and the division is expected to deliver similar sales levels in the full year as the previous year, with a stronger performance in the second half compared with the first half of 2008.
The division's new cigarette making machine,Β Octave,Β which was presented at the industry trade show in November 2007, is undergoing a full production field trial in a customer's factory.Β
Packaging Machinery
Sales decreased in the period to Β£18.3m (2007: Β£19.7m), reflecting a combination of increases at ITCM, Langen Packaging and Cerulean Packing, but offset by a reduction in sales at Langenpac. The Langenpac reduction is due to aΒ stronglyΒ second half weighted order book for the current year, combined with an unusually high level of sales in the first half of 2007.
Overall order intake in the division was down, with customers acting cautiously in respect of their capital investment decisions, reflecting uncertainΒ globalΒ economic conditions. However, Langenpac achieved an increase in order intake in the period compared with last year, and whilst order intake at ITCM was lower, prospects for a strong level of order intake in the second half of the year for this business are good.
The division returned an operating loss in the period of Β£0.2m, compared with break-even in 2007. As anticipated, the performance at Langen Packaging was considerably improved, following a significant loss in 2007, as the operational improvement plan continued to take effect. Conditions, though, remain difficult in the North American market, compounded by the strong Canadian dollar. In line with its lower sales levels Langenpac returned a loss in the period, compared with a strong level of profit last year. Performance in the second half of the year is expected to be stronger in all parts of the division.
Scientific Services
Sales in the period increased to Β£9.7m (2007: Β£6.5m), leading to an improved operating profit in the half-year of Β£0.6m, compared with a loss in 2007 of Β£0.2m.
The improved divisional performance was driven by Cerulean, with the increased order intake experienced in the second half of 2007 continuing through the first half of this year, although investment plans throughout the tobacco industry remain uncertain. With relatively short delivery cycles, sales improved considerably compared with the equivalent period last year, which in turn resulted in improved profitability.
PerformanceΒ atΒ Arista Laboratories was broadly similar to last year. As previously communicated, one of its major customers has in-sourced part of its testing requirements in order to utilise better its own internal laboratory, which has impacted performance at Arista. There remain reasonable prospects of regulatory changes, especially in theΒ US, which would lead to opportunities for the business, although the timing and impact of such legislation passing is uncertain.
Cash
Group net debt atΒ 30 June 2008Β was Β£14.4mΒ (30 June 2007: Β£13.2m;Β 31 December 2007: Β£7.6m). The prime constituents of the adverse cash movement in theΒ six monthΒ period were an increase in working capital levels of Β£5.7m,Β mainlyΒ as a result of the level of advanceΒ cashΒ deposits held by the Group having reduced from a relatively high level at theΒ end ofΒ 2007, reorganisation costs paid to the pension scheme of Β£0.6m and dividends paid of Β£1.0m. As in previous years it is expected that the Group will generate positive cash flows in the second half of the year, thereby reducing net debt from the half-year position.
Pension valuations
The Group operates defined benefit schemes in theΒ UKΒ and US, and has adopted IAS 19 (revised)Β EmployeeΒ benefitsΒ as its basis of accounting for these schemes. In the first six months of 2008, the net pension credit arising from the defined benefit schemes was Β£1.7m (2007: Β£1.4m). The IAS 19 valuation of theΒ UKΒ scheme atΒ 30 June 2008Β showsΒ aΒ deterioration, moving from a surplus of Β£25.9m before tax atΒ 31 December 2007, to a surplus of Β£6.6m at the half-year. This decrease has largely arisen from an actuarial loss in the period, with a decrease in the value of the scheme's assets to Β£326.1m (31 December 2007: Β£355.0m) being only partially offset by a reduction in the value of the scheme's liabilities to Β£319.5m (31 December 2007: Β£329.1m). The net valuation of theΒ USΒ pension funds atΒ 30 June 2008, with total assets of Β£11.9m, showed a deficit of Β£0.5m (31 December 2007: Β£0.4m surplus).
In the six months period the Group made payments to these funds of Β£0.4m for the regular cost of benefits, plus a final payment of Β£0.6m in respect of pension augmentation costs arising from redundancies announced in 2006.Β
Property
In March 2008 shareholder approval was obtained in respect of an agreement entered into by the Company, which granted the prospective purchaser of the Company's site inΒ Saunderton,Β UK, e-shelter facility services GmbH, an option to acquire the property on or beforeΒ 3 October 2008Β for a cash consideration of Β£17.5m. Since that time the prospective purchaser has been working to obtain planning permission for its proposed scheme. Due to additional information requirements of the planning authority, planning permission is unlikely to have been obtained by the end of the option period. e-shelter is not prepared to exercise its option without the planning permission and therefore has sought, and the Company has granted, within the terms of the ordinary resolution approved by Molins' shareholders, an extension to the option period toΒ 18 December 2008, to allow the acquisition of the property byΒ 22Β December 2008. All other terms and conditions of the proposed transaction, full details of which are contained in a circular sent to shareholders on 29 February 2008, have remained unchanged, which includes the payment by e-shelter to the Company of Β£300,000 on or before 30 September as a non-returnableΒ deposit, in addition to amounts already received.
The book value of the property subject to the transaction was Β£13.1m atΒ 30 June 2008Β before deferred tax, Β£12.5m net of deferred tax. If completed the transaction will result in net cash proceeds, after costs and taxation, of approximately Β£15.7m and generate a profit to the Group of approximately Β£3.8m.
Related party transactions
There has been no material change in the nature of related party transactions from those described inΒ note 32 ofΒ the 2007 Annual Report and AccountsΒ and these are also referred to in note 14 of thisΒ Half-YearlyΒ FinancialΒ Report.
RisksΒ
Molins is subject to a number of risks which could have a serious impact on the performance of the business. The Board regularly considers the principal risks that the Group faces and how to mitigate their potential impact. The key risks to which the business is exposed have not changed significantly over the past six months and are not expected to do so over the remaining six months of the financial year. Further information on the principal risks and uncertainties faced by the Group is included on pages 8 and 9 of the Group's 2007 Annual Report and Accounts.
Dividend
The Board has declared an interim dividend in respect of 2008 ofΒ 2.5p per ordinary share (2007: 2p), which will be paid onΒ 9 October 2008Β to shareholders on the register onΒ 12 September 2008. Dividends paid to shareholders in the six months toΒ 30 June 2008Β were 5p per ordinary share (2007: 4p).Β
Board
Jonathan Azis joined the Board as a non-executive director onΒ 1 July 2008, and John Allkins and Andrew Cripps were appointed as non-executive directors onΒ 1 August 2008. Mike Steen, aΒ non-executiveΒ director since 2000, retired from the Board onΒ 30 June 2008.
Outlook
Overall, the Group is expected to produce a much stronger second half performance than in the first half, as has been the pattern over the last few years. Tobacco Machinery is expected to deliver sales in theΒ fullΒ yearΒ at similar levels toΒ last year, but as previously indicated this is unlikely to reflect as favourable a mix as in 2007. Packaging Machinery is expected to perform considerably more strongly in the second half of the year compared with the first half, and to show progress in the year as a whole. Scientific Services is also well placed to continue its progress.
Responsibility Statement of the Directors in respect of the Half-Yearly Financial Report
We confirm that to the best of our knowledge:
the condensedΒ set ofΒ financial statements hasΒ been prepared in accordance with IAS 34Β InterimΒ financialΒ reportingΒ as adopted by the EU; and
theΒ InterimΒ ManagementΒ Report includes a fair review of the information required by:
DTR 4.2.7R of theΒ Disclosure and Transparency Rules, being an indication of important events that have occurred during the firstΒ sixΒ months of the financial year and their impact on the condensedΒ set ofΒ financial statements; and a description of the principal risks and uncertainties for the remainingΒ sixΒ months of the year; and
DTR 4.2.8R of theΒ Disclosure and Transparency Rules, being related party transactions that have taken place in the firstΒ sixΒ months of the current financial year and that have materially affected the financial position or performance of the Group during that period; and any changes in the related party transactions described in the last annual report that could do so.
By order of the Board
Dick HunterΒ Chief Executive
David CowenΒ Group Finance Director
28 August 2008
Condensed Consolidated Income Statement
|
Β |
Notes |
6 monthsΒ to 30 June 2008 Β£m |
6 monthsΒ to 30 June 2007 Β Β£m |
12 months to 31 Dec 2007 Β£m |
|
Continuing operations RevenueCost of sales |
5 |
45.2 (32.7) Β |
41.1 (29.4) Β |
89.3 (63.2) Β |
|
Gross profitOther operating income Distribution expenses Administrative expenses Other operatingΒ expenses |
12.5 0.1 (2.8)Β (7.1)Β (0.2)Β Β |
11.7 0.1 (2.8)Β (6.5)Β (0.1)Β Β |
26.1 0.2 (5.4)Β (12.3)Β (0.2)Β Β |
|
|
Operating profit |
5,6 |
2.5 |
2.4 |
8.4 |
|
Financial income Financial expenses |
0.1 (0.5)Β Β |
0.1 (0.6)Β Β |
0.2 (1.2)Β Β |
|
|
Net financing costs |
5 |
(0.4)Β Β |
(0.5)Β Β |
(1.0)Β Β |
|
Profit before taxTaxation |
57 |
2.1 0.2 Β |
1.9 (0.2)Β Β |
7.4 (1.8)Β Β |
|
Profit from continuing operations |
2.3 Β |
1.7 Β |
5.6 Β |
|
|
Discontinued operations |
||||
|
Profit from discontinued operations |
8 |
- Β |
0.2 Β |
2.3 Β |
|
Profit for the period |
2.3 Β |
1.9 Β |
7.9 Β |
|
|
Basic earnings per ordinary share Diluted earningsΒ per ordinary share |
9 9 |
12.0p 11.1p Β |
10.1p 9.1p Β |
42.0p 38.0p Β |
|
Continuing operations Basic earnings per ordinary share Diluted earnings per ordinary share |
9 9 |
12.0p 11.1p Β |
8.9p 8.1p Β |
29.7p 27.0p Β |
Condensed Consolidated Balance Sheet
|
Notes |
30 June 2008 Β£m |
30 June 2007 Β£m |
31 Dec 2007 Β£m |
|
|
Non-current assetsIntangible assets Property, plant and equipmentOther receivables Employee benefits Deferred tax assets |
6 |
13.3 23.2 0.6 4.3 0.8 Β 42.2 Β |
13.3 22.8 0.5 20.5 0.8 Β 57.9 Β |
13.3 23.4 0.5 17.2 0.4 Β 54.8 Β |
|
Current assetsInventoriesTrade and other receivablesΒ Current tax assets Cash and cash equivalents Assets held for sale |
8 |
15.8 19.2 0.4 2.7 - Β 38.1 |
14.7 18.7 0.5 3.6 1.8 Β 39.3 |
15.1 18.3 0.3 3.5 - Β 37.2 |
|
Current liabilitiesBank overdrafts Interest-bearing loans and borrowings Trade and other payablesCurrent tax liabilities Provisions |
(0.2)Β - (20.4)Β (0.5)Β (1.6)Β Β (22.7)Β Β |
(0.3)Β (2.0)Β (25.4)Β (0.5)Β (2.2)Β Β (30.4)Β Β |
(0.8)Β (0.6)Β (25.1)Β (1.0)Β (1.8)Β Β (29.3)Β Β |
|
|
Net current assets |
15.4 Β |
8.9 Β |
7.9 Β |
|
|
Total assets less current liabilities |
57.6 |
66.8 |
62.7 |
|
|
Non-current liabilitiesInterest-bearing loans and borrowings Employee benefitsDeferred tax liabilities |
6 |
(16.9)Β (0.5)Β (0.7)Β Β (18.1)Β Β |
(14.5)Β (0.6)Β (8.6)Β Β (23.7)Β Β |
(9.7)Β - (0.7)Β Β (10.4)Β Β |
|
Net assets |
39.5 Β |
43.1 Β |
52.3 Β |
|
|
EquityIssued capital Share premium Reserves Retained earnings Total equity |
11 |
5.0 26.0 6.5 2.0 Β 39.5 Β |
5.0 26.0 3.7 8.4 Β 43.1 Β |
5.0 26.0 5.0 16.3 Β 52.3 Β |
Condensed Consolidated Statement of Cash Flows
|
Notes |
6 months toΒ 30 June 2008 Β£m |
6 monthsΒ toΒ 30 JuneΒ 2007Β Β£mΒ |
12Β months toΒ 31 Dec 2007 Β£m |
|
|
Continuing operationsOperating activitiesOperating profit |
2.5 |
2.4 |
8.4 |
|
|
Amortisation Depreciation |
0.7 1.0 |
0.5 1.0 |
1.2 2.0 |
|
|
Other non-cash items Pension payments |
(1.5)Β (0.4)Β |
(1.2)Β (0.6)Β |
(2.7)Β (1.2)Β |
|
|
Working capital movements: -Β decrease/(increase)Β in inventories -Β (increase)/decrease in trade and other receivables -Β decreaseΒ in trade and other payables -Β decrease in provisions |
0.1 (0.7)Β (5.1)Β - |
(1.8)Β 4.3 (1.8)Β (0.1)Β |
(1.4)Β 5.4 (2.8)Β (0.1)Β |
|
|
CashΒ (used in)/generated from operations before reorganisationReorganisation costs paidPension payment following sale of Nottingham property CashΒ (used in)/generated from operations |
Β (3.4)Β (0.7)Β - Β (4.1)Β |
Β 2.7 (0.5)Β - Β 2.2 |
Β 8.8 (1.3)Β (0.5)Β Β 7.0 |
|
|
Taxation paid |
(0.4)Β Β |
(0.5)Β Β |
(0.7)Β Β |
|
|
Net cash from operating activities |
(4.5)Β Β |
1.7 Β |
6.3 Β |
|
|
Investing activitiesProceeds from sale of property, plant and equipmentAcquisition of property, plant and equipment Development expenditure |
0.1 (0.6)Β (0.7)Β Β |
0.1 (1.4)Β (0.6)Β Β |
0.1 (2.5)Β (1.2)Β Β |
|
|
Net cash from investing activities |
(1.2)Β Β |
(1.9)Β Β |
(3.6)Β Β |
|
|
Financing activitiesInterest received Interest paidRepayment of term loansNetΒ increase againstΒ revolving facilities Dividends paid |
12 |
0.1 (0.5)Β (0.6)Β 7.4Β Β (1.0)Β Β |
0.1 (0.6)Β (2.3)Β 1.8Β Β (0.8)Β Β |
0.2 (1.2)Β (7.0)Β -Β Β Β (1.1)Β Β |
|
Net cash from financing activities |
5.4 Β |
(1.8)Β Β |
(9.1)Β Β |
|
|
Discontinued operations Net cash from investing activities |
(0.2)Β Β |
0.7Β Β Β |
4.2 Β |
|
|
Net cash from discontinued operations |
(0.2)Β Β |
0.7 Β |
4.2Β Β Β |
|
|
NetΒ decreaseΒ in cash and cash equivalentsCash and cash equivalents at 1 January Effect of exchange rate fluctuations on cash heldCash and cash equivalents at period end |
10 |
(0.5)Β 2.7 0.3 Β 2.5 Β |
(1.3)Β 4.6 - Β 3.3 Β |
(2.2)Β 4.6 0.3 Β 2.7 Β |
Condensed Consolidated Statement of Recognised Income and Expense
|
Note |
6 months toΒ 30 June 2008 Β£m |
6 months toΒ 30 June 2007 Β£m |
12Β months toΒ 31 Dec 2007 Β£m |
|
|
Currency translation movements arising on foreignΒ currency net investments ActuarialΒ (losses)/gains Withholding taxΒ movementsΒ on pensionΒ scheme surplus Tax on items taken directly to equityNetΒ (expense)/income recognised directly in equityProfitΒ for the period Total recognised income and expense for theΒ period |
6 |
1.5 (22.6)Β 6.8 - Β (14.3)Β 2.3 Β (12.0)Β Β |
- 17.8 - (0.1)Β Β 17.7 1.9 Β 19.6Β Β Β |
1.3 27.1 (9.1)Β 1.8 Β 21.1 7.9 Β 29.0Β Β Β |
Notes toΒ theΒ CondensedΒ set ofΒ FinancialΒ Statements
Β
Β
The comparative figures for the financial year ended 31 December 2007 are not the Groupβs statutory accounts as defined in section 240 of the Companies Act 1985.Β The Groupβs statutory accounts have been reported on by the Groupβs auditors and delivered to the Registrar of Companies.Β The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985.Β The Groupβs statutory accounts for the year ended 31 December 2007 are available from the Companyβs registered office at 11 Tanners Drive, Blakelands, Milton Keynes MK14 5LU or from the Groupβs website atΒ www.molins.com.
Β
The condensed set of financial statements for the six months ended 30 June 2008 has been prepared in accordance with IAS 34 Interim financial reporting as adopted by the EU.Β They do not include all of the information required for full annual financial statements, and should be read in conjunction with the financial statements of the Group for the year ended 31 December 2007.
|
Revenue |
Operating profit/(loss) |
||||||
|
6 months to 30 June 2008 Β£m |
6Β months to 30 June 2007 Β£m |
12 months to 31 Dec 2007 Β£m |
6 months toΒ 30 June 2008 Β£m |
6 months to 30 June 2007 Β£m |
12 months to 31 Dec 2007 Β£m |
||
|
Continuing operations |
|||||||
|
Tobacco Machinery |
17.2 |
14.9 |
32.9 |
0.4 |
1.2 |
3.7 |
|
|
Packaging Machinery |
18.3 |
19.7 |
38.7 |
(0.2)Β |
- |
0.3 |
|
|
Scientific Services |
9.7 |
6.5 |
17.7 |
0.6 |
(0.2)Β |
1.4 |
|
|
Β 45.2 Β |
Β 41.1 Β |
Β 89.3 Β |
Β |
Β |
Β |
||
|
Underlying operating profit before net pension creditΒ |
0.8 |
1.0 |
5.4 |
||||
|
Net pension creditΒ |
1.7 |
1.4 |
3.0 |
||||
|
Operating profit |
Β 2.5 |
Β 2.4 |
Β 8.4 |
||||
|
Net financing costsΒ |
(0.4)Β Β |
(0.5)Β Β |
(1.0)Β Β |
||||
|
Profit before tax |
2.1 Β |
1.9 Β |
7.4 Β |
||||
Β
Β
|
6 monthsΒ toΒ 30 JuneΒ 2008Β Β£mΒ |
6 months toΒ 30 June 2007 Β£m |
12 months toΒ 31 Dec 2007 Β£m |
|
|
Tax charge on underlying profitΒ |
(0.1)Β |
- |
(1.0)Β |
|
TaxΒ onΒ Group pension schemes: |
|||
|
-Β tax credit on pension contributions |
0.3 |
- |
- |
|
-Β tax charge on net pension credit |
- |
(0.4)Β |
(1.0)Β |
|
-Β tax credit on reduction inΒ UKΒ corporation tax rate on deferred tax balances |
- Β |
0.2 Β |
0.2 Β |
|
Taxation |
0.2 Β Β |
(0.2)Β Β |
(1.8)Β Β |
Β
Β
|
6 months toΒ 30 June 2008 Β£m |
6 months toΒ 30 June 2007 Β£m |
12 months toΒ 31 Dec 2007 Β£m |
|
|
Profit for the period |
2.3 |
1.9 |
7.9 |
|
Net pension credit (net of tax)Β |
(2.0)Β |
(1.2)Β |
(2.2)Β |
|
Profit from discontinued operations |
- Β |
(0.2)Β Β |
(2.3)Β Β |
|
Underlying earnings for the period |
0.3 Β |
0.5 Β |
3.4 Β |
10. Reconciliation of net cash flow to movement in net debt
|
6 months toΒ 30 June 2008 Β£m |
6 months toΒ 30 June 2007 Β£m |
12 months toΒ 31 Dec 2007 Β£m |
|
|
Net decrease in cash and cash equivalents |
(0.5)Β |
(1.3)Β |
(2.2)Β |
|
CashΒ (outflow)/inflow from movement in borrowings |
(6.8)Β Β |
0.5 Β |
7.0 Β |
|
Change in net debt resulting from cash flows |
(7.3)Β |
(0.8)Β |
4.8 |
|
Translation movements |
0.5 Β |
(0.1)Β Β |
(0.1)Β Β |
|
Movement in net debt in the period |
(6.8)Β |
(0.9)Β |
4.7 |
|
Opening net debt |
(7.6)Β Β |
(12.3)Β Β |
(12.3)Β Β |
|
Closing net debt |
(14.4)Β Β |
(13.2)Β Β Β |
(7.6)Β Β |
|
Analysis of net debt |
|||
|
Cash and cash equivalents - current assets |
2.7 |
3.6 |
3.5 |
|
Bank overdrafts - current liabilities |
(0.2)Β |
(0.3)Β |
(0.8)Β |
|
Interest-bearing loans and borrowings - current liabilities |
- |
(2.0)Β |
(0.6)Β |
|
Interest-bearing loans and borrowings - non-current liabilities |
(16.9)Β Β |
(14.5)Β Β |
(9.7)Β Β |
|
Closing net debt |
(14.4)Β Β Β |
(13.2)Β Β |
(7.6)Β Β |
Β
Β
11. Reconciliation of movements in equity
|
6 months toΒ 30 June 2008 Β£m |
6 months toΒ 30 June 2007 Β£m |
12 months toΒ 31 Dec 2007 Β£m |
|
|
Opening equity |
52.3 Β |
24.1 Β |
24.1 Β |
|
Profit for the period |
2.3 |
1.9 |
7.9 |
|
Currency translation movements arising on foreign currency net investments |
1.5 |
- |
1.3 |
|
ActuarialΒ (losses)/gains |
(22.6)Β |
17.8 |
27.1 |
|
Withholding taxΒ movementsΒ on pensionΒ scheme surplus |
6.8 |
- |
(9.1)Β |
|
Tax on items taken directly to equity |
- |
(0.1)Β |
1.8 |
|
Equity-settled share-based transactions (LTIP) |
0.2 |
0.2 |
0.3 |
|
Dividends to shareholders |
(1.0)Β Β |
(0.8)Β Β |
(1.1)Β Β |
|
NetΒ (decrease)/increaseΒ in equity |
(12.8)Β Β |
19.0 Β |
28.2 Β |
|
Closing equity |
39.5 Β |
43.1 Β |
52.3 Β |
Β
Β
Independent Review Report to MolinsΒ PLC
Introduction
We have been engaged by theΒ Company to review the condensed set of financial statements in theΒ Half-YearlyΒ FinancialΒ Report for the six months endedΒ 30 June 2008Β which comprises the ConsolidatedΒ IncomeΒ Statement, the ConsolidatedΒ BalanceΒ Sheet, the ConsolidatedΒ Statement ofΒ CashΒ Flows, the ConsolidatedΒ Statement ofΒ RecognisedΒ Income andΒ Expense and the related explanatory notes. We have read the other information contained in theΒ Half-YearlyΒ FinancialΒ Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to theΒ Company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of theΒ UK's Financial Services Authority ("the UK FSA"). Our review has been undertaken so that we might state to theΒ Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than theΒ Company for our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
TheΒ Half-YearlyΒ FinancialΒ Report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing theΒ Half-YearlyΒ FinancialΒ Report in accordance with the DTR of the UK FSA.
As disclosed in noteΒ 2, the annual financial statements of theΒ Group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in thisΒ Half-YearlyΒ FinancialΒ Report has been prepared in accordance with IAS 34Β InterimΒ FinancialΒ ReportingΒ as adopted by the EU.
Our responsibility
Our responsibility is to express to theΒ Company a conclusion on the condensed set of financial statements in theΒ Half-YearlyΒ FinancialΒ Report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UKΒ andΒ Ireland) 2410Β Review of Interim Financial Information Performed by the Independent Auditor of the EntityΒ issued by the Auditing Practices Board for use in theΒ UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UKΒ andΒ Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in theΒ Half-YearlyΒ FinancialΒ Report for the six months endedΒ 30 June 2008Β is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FSA.
KPMG Audit PlcChartered AccountantsΒ
Milton Keynes
28 August 2008
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