Last checked at 6 Jun 2018 07:00
Chairman's Statement
Results and Review
For the year ending 28th April 2018, profit before taxation increased to £4.04m (2017 - £1.53m) on revenue of £68.09m (2017 - £53.82m). Earnings per share amounted to 20.5p (2017 - 9.1p). Net cash was stable at £15.87m (2017 - £15.21m).
In last November's half year statement, reference was made to our Company's two fundamental strengths. First, our long established policy to constantly review our capabilities, and if necessary adjust and adapt. This serves us well by ensuring we are aligned to changing market conditions and demands. Second, our diversified operating structure can deliver significant advantages when trading conditions are varied across totally different sectors.
During the year, those two strengths have been clearly demonstrated and indeed amplified. The 'Defence' division has made a good start towards a recovery in revenue and certainly in profitably as a result of a buoyant export market, although the domestic market remains restrained and subdued. 'Forgings' increased revenue and is breaking even at the trading level while losses, incurred as a consequence of developing the new manufacturing facility in the United States, are again reduced. 'Petrol Station Superstructures' and 'Petrol Station Branding' divisions both traded in a significantly changing international market, though they are at quite differing phases within this process of change.
Export sales at 'Defence' accounted for the major component of the division's revenue, primarily in response to numerous new product offerings, the accumulating benefit of considerable investment in research and development over recent years and our success in demonstrating continually enhanced customer service and support. The domestic market, by comparison, has remained constrained by the UK's tight budget controls which result in inevitable delays to programmes and, in consequence, a market that lacks any reasonable element of clarity.
'Forgings' experienced a significant increase in revenue over the previous year, partly reflecting the first phase of full production from our new facility in the United States. Our plants in the UK and Brazil continue to hold good market positions, reflecting a total commitment to enhancing efficient production, product quality and customer service.
'Petrol Station Superstructures' experienced a check to its growth pattern owing to a notable change in the market it principally serves. Until relatively recently, many of the division's major customers had been global oil companies but they have accelerated the divestment of their company owned petrol filling station estates, with ownership passing to both large and small independent dealer/retailers. Accordingly, construction of new sites and the refurbishment and expansion of existing facilities are passing through a state of limbo as numerous sale and purchase transactions continue to dominate the attention of the sector's active participants.
'Petrol Station Branding' market, by comparison, is perceived to be further advanced in this process of transformation. When ownership of stations changes the incumbent fuel supplier may also be changed and that in turn initiates rebranding of the station. The operational performance of this division is adjusting to the changing market which was lead initially by Germany, then The Netherlands and is now happening in the UK.
Throughout the period, the Company has preserved its established high level of investment across the businesses. This is a multi-faceted approach. A key feature is sustaining our creative and innovative product development programmes across the Group, which also results in us owning, unquestionably, the intellectual property rights of products we develop, particularly important in the defence sector. We also relentlessly strive to improve customer service and support and upgrade plant and equipment as appropriate to ensure we remain at the forefront of manufacturing capability and efficiency. No less important is our investment in personnel, particularly with regard to retaining and recruiting top quality engineers, commercial staff, plus national and international marketeers, together with focused training and development to enhance their potential.
Outlook
We perceive that, with a sustained measure of prudence, we are continuing to move the business forward on an upward trajectory and are well positioned to support and develop opportunities for the Group.
All matters considered the Board recommends the payment of a maintained final dividend of 6.5p per share making the total for the year of 8.25p (2017-8p). The final dividend is expected to be paid on 24th July 2018 to those shareholders on the register at the close of business on 22nd June 2018.
Michael Bell
5th June 2018
For any further information please contact:
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MS INTERNATIONAL plc Michael Bell | Tel: 01 302 322133 |
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Shore Capital Nomad and Broker Patrick Castle/Daniel Bush | Tel: (0) 20 7408 4090 |
Consolidated income statement | |||||||
For the 52 weeks ended 28th April, 2018 | |||||||
2018 | 2017 | ||||||
Continuing operations | Total | Total | |||||
£000 | £000 | ||||||
Revenue | 68,085 | 53,823 | |||||
Cost of sales | (49,903) | (38,875) | |||||
Gross profit | 18,182 | 14,948 | |||||
Distribution costs | (3,383) | (3,654) | |||||
Administrative expenses | (10,546) | (9,523) | |||||
(13,929) | (13,177) | ||||||
Group operating profit | 4,253 | 1,771 | |||||
Finance revenue | 51 | 33 | |||||
Finance costs | (82) | (31) | |||||
Other finance costs - pensions | (183) | (247) | |||||
(214) | (245) | ||||||
Profit before taxation | 4,039 | 1,526 | |||||
Taxation | (653) | (28) | |||||
Profit for the period attributable to equity holders of the parent | 3,386 | 1,498 | |||||
Earnings per share: basic and diluted | 20.5p |
| 9.1p | ||||
Consolidated and company statement of comprehensive income
For the 52 weeks ended 28th April, 2018 | ||||||||
Group | Company | |||||||
2018 | 2017 | 2018 | 2017 | |||||
Total | Total | Total | Total | |||||
£000 | £000 | £000 | £000 | |||||
Profit for the period attributable to equity holders of the parent | 3,386 | 1,498 | 532 | 2,702 | ||||
Exchange differences on retranslation of foreign operations | (175) | 757 | - | - | ||||
Net other comprehensive (loss)/ profit to be reclassified to profit or loss in subsequent periods | (175) | 757 | - | - | ||||
Remeasurement gains on defined benefit pension scheme | 858 | 95 | 858 | 95 | ||||
Deferred taxation on remeasurement on defined benefit scheme | (146) | (16) | (146) | (16) | ||||
Change in taxation rates | - | (75) | - | (75) | ||||
Revaluation surplus on land and buildings | 2,052 | - | 1,935 | - | ||||
Deferred taxation on revaluation surplus on land and buildings | (254) | - | (231) | - | ||||
Net other comprehensive income not being reclassified to profit or loss in subsequent periods | 2,510 | 4 | 2,416 | 4 | ||||
Total comprehensive income for the period attributable to equity holders of the parent | 5,721 | 2,259 | 2,948 | 2,706 | ||||
Consolidated and company statement of changes in equity | |||||||||||||||||||
For the 52 weeks ended 28th April, 2018 | |||||||||||||||||||
Share capital | Capital redemption reserve | Other reserves | Revaluation reserve | Special reserve | Currency translation reserve | Treasury shares | Retained earnings | Total shareholders' funds | |||||||||||
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |||||||||||
(a) Group | |||||||||||||||||||
At 30th April, 2016 | 1,840 | 901 | 2,815 | 4,222 | 1,629 | (61) | (3,059) | 19,773 | 28,060 | ||||||||||
Profit for the period | - | - | - | - | - | - | - | 1,498 | 1,498 | ||||||||||
Other comprehensive income | - | - | - | - | - | 757 | - | 4 | 761 | ||||||||||
Total comprehensive income | - | - | - | - | - | 757 | - | 1,502 | 2,259 | ||||||||||
Dividends paid | - | - | - | - | - | - | - | (1,320) | (1,320) | ||||||||||
Change in taxation rates | - | - | - | 42 | - | - | - | - | 42 | ||||||||||
Depreciation of buildings revaluation | - | - | - | (7) | - | - | - | 7 | - | ||||||||||
At 29th April, 2017 | 1,840 | 901 | 2,815 | 4,257 | 1,629 | 696 | (3,059) | 19,962 | 29,041 | ||||||||||
Profit for the period | - | - | - | - | - | - | - | 3,386 | 3,386 | ||||||||||
Other comprehensive income/(loss) | - | - | - | 1,798 | - | (175) | - | 712 | 2,335 | ||||||||||
Total comprehensive income/(loss) | - | - | - | 1,798 | - | (175) | - | 4,098 | 5,721 | ||||||||||
Dividends paid | - | - | - | - | - | - | - | (1,362) | (1,362) | ||||||||||
At 28th April, 2018 | 1,840 | 901 | 2,815 | 6,055 | 1,629 | 521 | (3,059) | 22,698 | 33,400 | ||||||||||
(b) Company | |||||||||||||||||||
At 30th April, 2016 | 1,840 | 901 | 1,565 | 4,316 | 1,629 | - | (3,059) | 17,353 | 24,545 | ||||||||||
Profit for the period | - | - | - | - | - | - | - | 2,702 | 2,702 | ||||||||||
Other comprehensive income | - | - | - | - | - | - | - | 4 | 4 | ||||||||||
Total comprehensive income | - | - | - | - | - | - | - | 2,706 | 2,706 | ||||||||||
Dividends paid | - | - | - | - | - | - | - | (1,320) | (1,320) | ||||||||||
Change in taxation rates | - | - | - | 41 | - | - | - | - | 41 | ||||||||||
Depreciation of buildings revaluation | - | - | - | (6) | - | - | - | 6 | - | ||||||||||
At 29th April, 2017 | 1,840 | 901 | 1,565 | 4,351 | 1,629 | - | (3,059) | 18,745 | 25,972 | ||||||||||
Profit for the period | - | - | - | - | - | - | - | 532 | 532 | ||||||||||
Other comprehensive income | - | - | - | 1,704 | - | - | - | 712 | 2,416 | ||||||||||
Total comprehensive income | - | - | - | 1,704 | - | - | - | 1,244 | 2,948 | ||||||||||
Dividends paid | - | - | - | - | - | - | - | (1,362) | (1,362) | ||||||||||
At 28th April, 2018 | 1,840 | 901 | 1,565 | 6,055 | 1,629 | - | (3,059) | 18,627 | 27,558 | ||||||||||
Consolidated and company statements of financial position |
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At 28th April, 2018 | ||||||||||
Group | Company | |||||||||
2018 | 2017 | 2018 | 2017 | |||||||
£'000 | £'000 | £'000 | £'000 | |||||||
ASSETS | ||||||||||
Non-current assets | ||||||||||
Property, plant and equipment | 20,766 | 19,099 | 14,043 | 12,653 | ||||||
Intangible assets | 4,893 | 5,301 | - | - | ||||||
Investments in subsidiaries | - | - | 15,204 | 14,339 | ||||||
Deferred income tax asset | 1,092 | 1,272 | 1,092 | 1,272 | ||||||
26,751 | 25,672 | 30,339 | 28,264 | |||||||
Current assets | ||||||||||
Inventories | 11,666 | 10,145 | 1,017 | 7,989 | ||||||
Trade and other receivables | 14,617 | 11,393 | 10,003 | 14,566 | ||||||
Income tax receivable | 114 | 199 | - | - | ||||||
Prepayments | 1,127 | 943 | 335 | 824 | ||||||
Cash and cash equivalents | 15,866 | 15,210 | - | 13,526 | ||||||
43,390 | 37,890 | 11,355 | 36,905 | |||||||
TOTAL ASSETS | 70,141 | 63,562 | 41,694 | 65,169 | ||||||
EQUITY AND LIABILITIES | ||||||||||
Equity | ||||||||||
Share capital | 1,840 | 1,840 | 1,840 | 1,840 | ||||||
Capital redemption reserve | 901 | 901 | 901 | 901 | ||||||
Other reserve | 2,815 | 2,815 | 1,565 | 1,565 | ||||||
Revaluation reserve | 6,055 | 4,257 | 6,055 | 4,351 | ||||||
Special reserve | 1,629 | 1,629 | 1,629 | 1,629 | ||||||
Currency translation reserve | 521 | 696 | - | - | ||||||
Treasury shares | (3,059) | (3,059) | (3,059) | (3,059) | ||||||
Profit for the period | 3,386 | 1,498 | 531 | 2,572 | ||||||
Retained earnings | 19,312 | 18,464 | 18,096 | 16,174 | ||||||
TOTAL EQUITY SHAREHOLDERS' FUNDS | 33,400 | 29,041 | 27,558 | 25,973 | ||||||
Non-current liabilities | ||||||||||
Defined benefit pension liability | 6,421 | 7,485 | 6,421 | 7,485 | ||||||
Deferred income tax liability | 1,625 | 1,449 | 1,154 | 911 | ||||||
8,046 | 8,934 | 7,575 | 8,396 | |||||||
Current liabilities | ||||||||||
Bank overdraft | - | - | 342 | - | ||||||
Trade and other payables | 28,052 | 25,464 | 6,204 | 30,607 | ||||||
Income tax payable | 643 | 123 | 15 | 193 | ||||||
28,695 | 25,587 | 6,561 | 30,800 | |||||||
TOTAL EQUITY AND LIABILITIES | 70,141 | 63,562 | 41,694 | 65,169 | ||||||
Consolidated and company cash flow statements | ||||||||||
For the 52 weeks ended 28th April, 2018 | Group | Company | ||||||||
2018 | 2017 | 2018 | 2017 | |||||||
£000 | £000 | £000 | £000 | |||||||
Profit before taxation | 4,039 | 1,526 | 488 | 2,544 | ||||||
Adjustments to reconcile profit before taxation to net cash inflow/(outflow) from operating activities | ||||||||||
Depreciation charge | 1,266 | 1,105 | 708 | 853 | ||||||
Amortisation charge | 507 | 535 | - | 4 | ||||||
Net reversal of impairment in investment in subsidiary undertaking | - | - | (213) | (155) | ||||||
Profit on sale of fixed assets | (113) | (35) | (84) | (34) | ||||||
Finance costs | 214 | 245 | 232 | 228 | ||||||
Foreign exchange (losses)/gain | (74) | 419 | - | - | ||||||
(Increase)/decrease in inventories | (1,521) | (3,102) | 241 | (2,181) | ||||||
Increase in receivables | (3,224) | (2,397) | (1,530) | (4,911) | ||||||
(Increase)/decrease in prepayments | (184) | (159) | 489 | (142) | ||||||
Increase/(decrease) in payables | 2,679 | 3,126 | (6,281) | 1,409 | ||||||
(Decrease)/increase in progress payments | (91) | 7,085 | 213 | 6,928 | ||||||
Pension fund payments | (389) | (311) | (389) | (311) | ||||||
Cash generated from/(invested in) operating activities | 3,109 | 8,037 | (6,126) | 4,232 | ||||||
Net interest (paid)/received | (31) | 2 | (49) | 19 | ||||||
Taxation (paid)/received | (111) | (242) | (89) | 65 | ||||||
Net cash inflow/(outflow) from operating activities | 2,967 | 7,797 | (6,264) | 4,316 | ||||||
Investing activities | ||||||||||
Investment in MSI- Forks Inc | - | - | (652) | - | ||||||
Investment in Global MSI bv | - | - | - | (14) | ||||||
Transfer of net assets to MSI-Defence Systems Ltd. | - | - | (5,127) | - | ||||||
Purchase of property, plant and equipment | (1,106) | (4,165) | (568) | (720) | ||||||
Profit on disposal of property, plant and equipment | 157 | 140 | 105 | 117 | ||||||
Net cash outflow from investing activities | (949) | (4,025) | (6,242) | (617) | ||||||
Financing activities | ||||||||||
Dividends paid | (1,362) | (1,320) | (1,362) | (1,320) | ||||||
Dividend received from subsidiary | - | - | - | 130 | ||||||
Net cash outflow from financing activities | (1,362) | (1,320) | (1,362) | (1,190) | ||||||
Increase/(decrease) in cash and cash equivalents | 656 | 2,452 | (13,868) | 2,509 | ||||||
Opening cash and cash equivalents | 15,210 | 12,758 | 13,526 | 11,017 | ||||||
Closing cash and cash equivalents/bank overdraft | 15,866 | 15,210 | (342) | 13,526 | ||||||
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1 | Segment information | ||||||||||||||||||||
The following table presents revenue and profit and certain assets and liability information regarding the Group's divisions for the periods ended 28th April, 2018 and 29th April, 2017. The reporting format is determined by the differences in manufacture and services provided by the Group. The Defence division is engaged in the design, manufacture and service of defence equipment. The Forgings division is engaged in the manufacture of forgings. The Petrol Station Superstructures division is engaged in the design, manufacture, construction, branding, maintenance and restyling of petrol station superstructures. The Petrol Station Branding division is engaged in the design and installation of the complete appearance of petrol stations. | |||||||||||||||||||||
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Group financing (including finance costs and finance revenue) and income taxes are managed on a group basis and are not allocated to operating segments. | |||||||||||||||||||||
Defence | Forgings | Petrol Station | Petrol Station | Total | |||||||||||||||||
Superstructures | Branding | ||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
£000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |||||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||
External | 21,900 | 20,847 | 14,336 | 12,562 | 12,236 | 13,745 | 19,613 | 6,669 | 68,085 | 53,823 | ||||||||||||||||||||||||||||||||
Total revenue | 21,900 | 20,847 | 14,336 | 12,562 | 12,236 | 13,745 | 19,613 | 6,669 | 68,085 | 53,823 | ||||||||||||||||||||||||||||||||
Segment result | 2,600 | 1,822 | (536) | (721) | 17 | 957 | 2,172 | (287) | 4,253 | 1,771 | ||||||||||||||||||||||||||||||||
Net finance costs | (214) | (245) | ||||||||||||||||||||||||||||||||||||||||
Profit before taxation | 4,039 | 1,526 | ||||||||||||||||||||||||||||||||||||||||
Taxation | (653) | (28) | ||||||||||||||||||||||||||||||||||||||||
Profit for the period | 3,386 | 1,498 | ||||||||||||||||||||||||||||||||||||||||
Segmental assets | 40,801 | 30,576 | 5,272 | 5,178 | 8,845 | 8,260 | 10,005 | 5,514 | 64,923 | 49,528 | ||||||||||||||||||||||||||||||||
Unallocated assets (see below) | 5,218 | 14,034 | ||||||||||||||||||||||||||||||||||||||||
Total assets | 70,141 | 63,562 | ||||||||||||||||||||||||||||||||||||||||
Segmental liabilities | 19,329 | 18,333 | 1,978 | 1,905 | 1,970 | 2,572 | 4,402 | 2,644 | 27,679 | 25,454 | ||||||||||||||||||||||||||||||||
Unallocated liabilities (see below) | 9,062 | 9,067 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | 36,741 | 34,521 | ||||||||||||||||||||||||||||||||||||||||
Capital expenditure | 18 | 219 | 530 | 3,297 | 149 | 254 | 211 | 341 | 908 | 4,111 | ||||||||||||||||||||||||||||||||
Depreciation | 154 | 211 | 480 | 305 | 628 | 627 | 365 | 347 | 1,627 | 1,490 | ||||||||||||||||||||||||||||||||
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Unallocated assets includes certain fixed assets, intangible assets, current assets and deferred tax assets. Unallocated liabilities includes the defined pension benefit scheme liability and certain current liabilities. |
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Geographical analysis |
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The following table presents revenue and expenditure and certain assets and liabilities information by geographical segment for the periods ended 28th April, 2018 and 29th April, 2017. The Group's geographical segments are based on the location of the Group's assets. Revenue from external customers is based on the geographical location of its customers. |
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Europe | North America | Rest of the World | Total | ||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||
£000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | ||||||||||
Revenue | |||||||||||||||||
External | 50,717 | 45,599 | 5,919 | 6,072 | 11,449 | 2,152 | 68,085 | 53,823 | |||||||||
Non-current assets | 22,525 | 21,230 | 4,164 | 4,351 | 62 | 91 | 26,751 | 25,672 | |||||||||
Current assets | 41,223 | 35,911 | 1,321 | 1,213 | 846 | 766 | 43,390 | 37,890 | |||||||||
Liabilities | 31,473 | 29,163 | 4,681 | 4,922 | 587 | 436 | 36,741 | 34,521 | |||||||||
Capital expenditure | 802 | 992 | 304 | 3,149 | - | 24 | 1,106 | 4,165 | |||||||||
Information about major customers | 2018 | 2017 | ||||||||||||||
Revenue from major customers arising from sales reported in the Defence segment: | £000 | £000 | ||||||||||||||
Customer 1 | 7,137 | - | ||||||||||||||
Customer 1 | - | 9,065 | ||||||||||||||
Revenue from major customers arising from sales reported in the Petrol Station Branding segment:
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Customer 1 | 14,761 | - | ||||||||||||||
2 | Employee information | 2018 | 2017 | |||||
Number | Number | |||||||
The average number of employees, including executive directors, during the period was: | ||||||||
Production | 251 | 234 | ||||||
Technical | 69 | 65 | ||||||
Distribution | 33 | 30 | ||||||
Administration | 78 | 80 | ||||||
431 | 409 | |||||||
(a) | Staff costs | 2018 | 2017 | |||||
Including executive directors, employment costs were as follows: | £000 | £000 | ||||||
Wages and salaries | 16,029 | 12,764 | ||||||
Social Security costs | 1,850 | 1,355 | ||||||
Other pension costs | 637 | 398 | ||||||
18,516 | 14,517 | |||||||
2018 | 2017 | |||||||
(b) | Directors' emoluments | £000 | £000 | |||||
Aggregate directors' emoluments | 1,431 | 1,152 | ||||||
Post employment benefits | 37 | 31 | ||||||
1,468 | 1,183 | |||||||
3 | Taxation | ||||
The charge for taxation comprises: | 2018 | 2017 | |||
£000 | £000 | ||||
Current tax | |||||
United Kingdom corporation tax | - | 9 | |||
Adjustments in respect of previous years | 33 | 15 | |||
Foreign corporation tax | 682 | 116 | |||
Group current tax | 715 | 140 | |||
Deferred tax | |||||
Origination and reversal of temporary differences | (62) | (73) | |||
Adjustments in respect of prior years | - | (26) | |||
Impact of reduction in deferred tax rate to 17% | - | (13) | |||
Group deferred tax | (62) | (112) | |||
Tax on profit | 653 | 28 | |||
Tax relating to items charged or credited to other comprehensive income | |||||
Deferred tax | |||||
Deferred tax on remeasurement losses on pension scheme current year | 146 | 16 | |||
Deferred tax on revaluation surplus on land and buildings | 254 | - | |||
Impact of reduction in deferred tax rate to 17% | - | 75 | |||
Income tax in the statement of comprehensive income | 400 | 91 | |||
(b) | Factors affecting the tax charge for the year | ||||
The tax assessed for the period differs to the standard rate of corporation tax in the UK (19%) (2017 - 20%). The differences are explained below: | |||||
2018 | 2017 | ||||
£000 | £000 | ||||
Profit before tax | 4,039 | 1,526 | |||
Profit multiplied by standard rate of corporation tax of 19% (2017 - 20%) | 767 | 305 | |||
Expenses not deductible for tax purposes | (288) | (434) | |||
Adjustments in respect of overseas tax rates | 141 | 181 | |||
Current tax adjustment in respect of prior periods | 33 | 15 | |||
Deferred tax adjustment in respect of prior periods | - | (26) | |||
Impact of reduction in deferred tax rate to 17% | - | (13) | |||
Total tax charge for the period | 653 | 28 | |||
(c) | Factors affecting future tax change | ||||
| The UK corporation tax rate will remain at 19% until it reduces to 17% in 2020. At 28th April, 2018 the rate reductions to 17% had been enacted. Deferred tax at 28th April, 2018 has therefore been provided at 17% or at a blended rate depending on when the underlying temporary differences are expected to unwind. Deferred tax in relation to intangibles recognised on the acquisition of Petrol Sign bv has been provided at 25% being the main corporation tax rate in The Netherlands. | ||||
4 | Earnings per share | ||||
The calculation of basic earnings per share is based on: | |||||
(a) Profit for the period attributable to equity holders of the parent of £3,386,000 (2017 - £1,498,000). | |||||
(b) 16,504,691 (2017 - 16,504,691) Ordinary shares, being the weighted average number of Ordinary shares in issue. | |||||
This represents 18,396,073 (2017 - 18,396,073) being the weighted average number of Ordinary shares in issue less 1,891,382 (2017 - less 1,891,382) being the weighted average number of shares both held within the ESOT 245,048 (2017 - 245,048) and purchased by the Company 1,646,334 (2017 - 1,646,334). | |||||
5 | Dividends paid and proposed | 2018 | 2017 | ||
£000 | £000 | ||||
Declared and paid during the year | |||||
On Ordinary shares | |||||
Final dividend for 2017 : 6.50p (2016 - 6.50p) | 1,073 | 1,073 | |||
Interim dividend for 2018 : 1.75p (2017 - 1.50p) | 289 | 247 | |||
1,362 | 1,320 | ||||
Proposed for approval by shareholders at the AGM | |||||
Final dividend for 2018 : 6.50p (2017 - 6.50p) | 1,073 | 1,073 | |||
6 | Trade and other receivables | ||||||||||||
Group | Company | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
£000 | £000 | £000 | £000 | ||||||||||
Trade receivables | 14,032 | 9,631 | 2,998 | 6,792 | |||||||||
Retentions on contracts | 568 | 1,723 | 22 | 1,723 | |||||||||
Amounts owed by subsidiary undertakings | - | - | 6,983 | 6,036 | |||||||||
Other receivables | 17 | 39 | - | 15 | |||||||||
14,617 | 11,393 | 10,003 | 14,566 | ||||||||||
Gross amounts due from customers for contract work - included above | 1,661 | 2,270 | 851 | 2,033 | |||||||||
The aggregate amount of costs incurred and recognised profits to date on contracts is £12,159,000 (2017 - £13,679,000). | |||||||||||||
(a) Trade receivables are denominated in the following currencies | |||||||||||||
Group | Company | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
£000 | £000 | £000 | £000 | ||||||||||
Sterling | 7,160 | 6,208 | 2,194 | 6,208 | |||||||||
Euro | 5,961 | 2,578 | 812 | 593 | |||||||||
US dollar | 582 | 516 | - | (14) | |||||||||
Other currencies | 329 | 329 | (8) | 5 | |||||||||
14,032 | 9,631 | 2,998 | 6,792 | ||||||||||
Trade receivables are non-interest bearing and are generally on 30 days terms and are shown net of provision for impairment. The aged analysis of trade receivables not impaired is as follows: | |||||||||||||
Group | Total | Not past due
| < 30 days | 30-60 days | 60-90 days | > 90 days | |||||||
£000 | £000 | £000 | £000 | £000 | £000 | ||||||||
2018 | 14,032 | 9,377 | 4,446 | 142 | 24 | 43 | |||||||
2017 | 9,631 | 8,028 | 1,397 | 182 | 15 | 9 | |||||||
As at 28th April, 2018 trade receivables at a nominal value of £97,000 (2017 - £84,000) were impaired and fully provided. Bad debts of £15,000 (2017 - £19,000) were recovered and bad debts of £28,000 (2017 - £17,000) were incurred. | |||||||||||||
Company | |||||||||||||
2018 | 2,998 | 2,172 | 808 | 17 | - | 1 | |||||||
2017 | 6,792 | 5,623 | 1,139 | 30 | - | - | |||||||
As at 28th April, 2018 trade receivables at a nominal value of £32,000 (2017 - £37,000) were impaired and fully provided. Bad debts of £11,000 (2017 - £6,000) were recovered and bad debts of £6,000 (2017 - £4,000) were incurred. | |||||||||||||
(b) Retentions on contracts are denominated in the following currencies | |||||||||||||
Group | Company | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
£000 | £000 | £000 | £000 | ||||||||||
Sterling | 568 | 1,723 | 22 | 1,723 | |||||||||
Euro | - | - | - | - | |||||||||
US dollar | - | - | - | - | |||||||||
Other currencies | - | - | - | - | |||||||||
568 | 1,723 | 22 | 1,723 | ||||||||||
Retentions on contracts are non interest bearing and represent amounts contractually retained by customers on completion of contracts for specific time periods as follows: | |||||||||||||
Group | Total | Up to 6 months | 6 - 12 months | 12 - 18 months | 18 - 24 months | ||||||||
£000 | £000 | £000 | £000 | £000 | |||||||||
2018 | 568 | 546 | 22 | - | - | ||||||||
2017 | 1,723 | 1,723 | - | - | - | ||||||||
Company | |||||||||||||
2018 | 22 | - | 22 | - | - | ||||||||
2017 | 1,723 | 1,723 | - | - | - | ||||||||
7 | Cash and cash equivalents/bank overdraft | Group | Company | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
£000 | £000 | £000 | £000 | ||||||||||
Cash at bank and in hand | 7,504 | 9,880 | - | 13,526 | |||||||||
Short term deposits | 8,362 | 5,330 | - | - | |||||||||
Bank overdraft | - | - | (342) | - | |||||||||
15,866 | 15,210 | (342) | 13,526 | ||||||||||
8 | Reserves | |||||||||||||||||
Share Capital | ||||||||||||||||||
The balance classified as share capital includes the nominal value on issue of the Company's equity share capital, comprising 10p Ordinary shares. | ||||||||||||||||||
Capital redemption reserve | ||||||||||||||||||
The balance classified as capital redemption reserve represents the nominal value of issued share capital of the Company, repurchased. | ||||||||||||||||||
Other reserve | ||||||||||||||||||
This is the revaluation reserve previously arising under UK GAAP which is now part of non-distributable retained reserves. | ||||||||||||||||||
Revaluation reserve | ||||||||||||||||||
The asset revaluation reserve is used to record increases in the fair value of land and buildings and decreases to the extent that such decrease relates to an increase on the same assets previously recognised in equity. This also includes the impact of the change in related deferred tax due to the change in corporation tax (18% to 17%). | ||||||||||||||||||
Special reserve | ||||||||||||||||||
The balance classified as special reserve represents the share premium on the issue of the Company's equity share capital. | ||||||||||||||||||
Currency translation reserve | ||||||||||||||||||
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. It is also used to record the effect of hedging net investments in foreign operations. | ||||||||||||||||||
Treasury Shares | ||||||||||||||||||
2018 | 2017 | |||||||||||||||||
£000 | £000 | |||||||||||||||||
Employee Share Ownership Trust | 100 | 100 | ||||||||||||||||
Shares in treasury (see below) | 2,959 | 2,959 | ||||||||||||||||
3,059 | 3,059 | |||||||||||||||||
During 1991 the Company established an Employee Share Ownership Trust ("ESOT"). The trustee of the ESOT is Appleby Trust (Jersey) Ltd, an independent company registered in Jersey. The ESOT provides for the issue of options over Ordinary shares in the Company to Group employees, including executive directors, at the discretion of the Remuneration Committee. | ||||||||||||||||||
The trust has purchased an aggregate 245,048 (2017 - 245,048) Ordinary shares, which represents 1.3% (2017 - 1.3%) of the issued share capital of the Company at an aggregate cost of £100,006. The market value of the shares at 28th April, 2018 was £453,000 (2017 - £414,000). The Company has made payments of £Nil (2017 - £Nil) into the ESOT bank accounts during the period. No options over shares (2017 - Nil) have been granted during the period. Details of the outstanding share options, for Directors are included in the Directors' remuneration report. | ||||||||||||||||||
The assets, liabilities, income and costs of the ESOT have been incorporated into the Company's financial statements. Total ESOT costs charged to the income statement in the period amounts to £7,000 (2017 - £5,000). During the period no options on shares were exercised (2017 - Nil) and no shares were purchased (2017 - Nil). | ||||||||||||||||||
The Company made the following purchases of its own 10p Ordinary shares to be held in Treasury: | ||||||||||||||||||
£000 | ||||||||||||||||||
11th December, 2013 1,000,000 shares from the Group's pension scheme. | 1,722 | |||||||||||||||||
30th January, 2014 646,334 shares | 1,237 | |||||||||||||||||
2,959 | ||||||||||||||||||
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The preliminary announcement is prepared on the same basis as set out in the previous year's accounts. | ||||||||||||||||||
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The Directors confirm to the best of their knowledge that: | ||||||||||||||||||
(a) the financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the group and the undertakings included in the consolidation taken as a whole; and | ||||||||||||||||||
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(b) the Chairman's Statement includes a fair review of the development and performance of the business and the position of the group and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. | ||||||||||||||||||
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The preliminary announcement was approved by the Board on 5th June, 2018 and the above responsibility statement was signed on its behalf by Michael Bell, Executive Chairman and Michael O'Connell, Group Finance Director. | ||||||||||||||||||
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Copies of this announcement are available from the Company's registered office at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England. The full Annual Report and Accounts which will include the Notice of AGM, will be posted to shareholders shortly and will be available on our website at www.msiplc.com and will be delivered to the Registrar of Companies after it has been laid before the Company in general meeting. | ||||||||||||||||||
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