Source - RNS
RNS Number : 1396L
Andrews Sykes Group PLC
29 September 2016
 



Andrews Sykes Group plc

Interim Financial Statements 2016

 

Summary of results

for the six months ended 30 June 2016

 


(Unaudited)


6 months ended

 30 June 2016

6 months ended

 30 June 2015


£'000

£'000




Revenue from continuing operations

30,287

28,240

EBITDA* from continuing operations

8,799

7,293

Operating profit

6,395

4,973

Inter-company foreign exchange gains and losses

1,062

(355)

Profit for the financial period

6,195

3,732

Basic earnings per share (pence)

14.66p

8.83p

Interim dividends declared per equity share (pence)

11.90p

11.90p

Net funds

15,392




 

*       Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-recurring items.

 

For further information please contact:

Andrews Sykes Group plc

Paul Wood, Group Managing Director

Andy Phillips, Group Chief Financial Officer

 

+44 (0)1902 328700

 

GCA Altium (NOMAD)

Paul Lines

Adam Sivner

 

+44 (0)845 505 4300

Arden Partners plc (Broker)

Steve Douglas

+44 (0) 20 7614 5920

 



 

Chairman's Statement

 

Overview

The group produced a successful result for the first half of 2016, once again the winter months created some good opportunities for our heating and boiler hire products. Overall, the group's revenue for the six months ended 30 June 2016 was £30.3 million, an increase of £2.1 million compared with the same period last year. As a consequence operating profit increased by £1.4 million from £5.0 million in the first half of 2015 to £6.4 million for the six months ended 30 June 2016.

The group continues to be profitable and cash generative. Cash generated from operations was £7.1 million (2015: £5.0 million) and net funds increased by £0.8 million from £14.6 million as at 31 December 2015 to £15.4 million as at 30 June 2016 this was after paying the 2015 final dividend of 11.9 pence per share, or £5.0 million in total, during the period.

Management continue to safeguard the operational structure of the business. Cash spent on new plant and equipment, primarily hire fleet assets, amounted to £2.2 million and a further £0.7 million from stock was also added to the hire fleet. We have continued our policy of pursuing organic growth within our market sectors and start up costs of the new businesses discussed in previous Strategic Reports continue to be expensed as incurred. Continuing investment in both our existing core businesses and the ongoing development of new operations and income streams will ensure that we remain in a strong position and will safeguard profitability into the future.

Operations review

Our main hire and sales business segment in the UK and Europe continued to expand during first half of 2016. Our pumping activity has increased when compared to 2015 and, despite a mild winter, our heating products have maintained revenue levels. Demand for our air conditioning products was in line with previous years.

Our operations across the Benelux region have continued a strong recovery with growth on last year's performance being recorded. Our recently established businesses in France, Switzerland and Luxembourg continue to trade in line with our expectations.

Andrews Air Conditioning & Refrigeration, our UK air conditioning installation business, produced an operating profit of £0.1 million.

Khansaheb Sykes, our long established business based in the UAE, had a strong start to the year, with improvements in our traditional pump hire activities. The climate rental division also continues to make a positive contribution. Overall, the operating profit of Khansaheb Sykes was £0.3 million ahead of the same period last year.

Profit for the financial period and Earnings per Share

Profit before tax was £7.5 million (2015: £4.7 million) reflecting both the above £1.4 million increase in operating profit and a significant improvement in net finance income and costs, also of £1.4 million, compared with the same period in 2015. This improvement was primarily due to a net inter-company foreign exchange gain of £1.1 million compared with a loss of £0.3 million in 2015 which in turn was mainly due to the weakening of Sterling.

The total tax charge increased by £0.4 million from £0.9 million for the six months ended 30 June 2015 to £1.3 million for the current six month period. The effective tax rate decreased from 20.2% for the six months ended 30 June 2015 to 17.7% in the current period. The rate for the current period is less than the standard UK corporation tax rate of 20% which is mainly due to (i) the utilisation of off balance sheet overseas tax losses due, in part, to overseas foreign exchange gains and (ii) the effect of profits being made in lower tax regions overseas. A reconciliation of the theoretical corporation tax charge based on the accounts profit multiplied by the UK annualised corporation tax rate of 20% and the actual tax charge is given in note 4 of these interim accounts.

Profit after tax was £6.2 million (2015: £3.7 million) and consequently the basic earnings per share increased by 5.83 pence, or 66%, from 8.83 pence for the first half of 2015 to 14.66 pence for the period under review. There were no share buy-backs in the period.



 

Dividends

The final dividend of 11.90 pence per ordinary share for the year ended 31 December 2015 was approved by members at the AGM held on 21 June 2016. Accordingly on 24 June 2016 the company made a total dividend payment of £5,029,000 which was paid to shareholders on the register as at 27 May 2016.

The board continues to adopt the policy of returning value to shareholders whenever possible. The group remains profitable, cash generative and financially strong. Accordingly the board has decided to declare an interim dividend for 2016 of 11.90 pence per share which in total amounts to £5,029,000. This will be paid on 2 November 2016 to shareholders on the register as at 7 October 2016. The shares will go ex-dividend on 6 October 2016.

Bank loan agreement

During the period, and in accordance with the agreed repayment profile, the group repaid the third annual instalment of £1 million that was due for payment on 30 April 2016. The remaining loan balance of £5 million is due for repayment in full on 30 April 2017 and therefore this amount has been included within current liabilities as at 30 June 2016. The group intends to finance this loan repayment by a new loan of the same amount and management have already commenced negotiations with the banks to secure this position.

Outlook

Trading in the third quarter to date has continued to be positive. After a slow start to the summer Europe has experienced above average temperatures during September which continue to stimulate high demand for air conditioning products. Once again activity in the Middle East has remained consistent through the summer period, with trading levels ahead of last year in both Sharjah and Abu Dhabi.

The board remains cautiously optimistic that the group will return an improved performance for the full year. 

 

 

 

 

JG Murray

Chairman

28 September 2016



 



 

Consolidated income statement

for the 6 months ended 30 June 2016 (unaudited)

 


6 months ended

30 June

2016

£'000


6 months ended

30 June

2015

£'000


   12 months 

   ended

   31 December 

   2015

    £'000

Continuing operations












Revenue

30,287


28,240


60,058

Cost of sales

(12,692)


(12,602)


(25,284)







Gross profit

17,595


15,638


34,774







Distribution costs

(5,772)


(5,343)


(10,828)

Administrative expenses

(5,428)


(5,322)


(10,738)







Operating profit

6,395


4,973


13,208







EBITDA*

Depreciation and impairment losses

Profit on the sale of plant and equipment

8,799

(2,702)

298


7,293

(2,531)

211


17,701

(4,959)

466

Operating profit

6,395


4,973


13,208













Finance income

145


145


280

Finance costs

(73)


(84)


(164)

Intercompany foreign exchange gains and losses

1,062


(355)


43

Profit before taxation

7,529


4,679


13,367







Taxation

(1,334)


(947)


(2,567)







Profit for the financial period

6,195


3,732


10,800







There were no discontinued operations in either of the above periods











Earnings per share from continuing operations











Basic and diluted (pence)

14.66p


8.83p


25.55p







Dividends paid during the period per equity share (pence)

11.90p


11.90p


23.80p







Proposed dividend per equity share (pence)

11.90p


11.90p


11.90p

 

 

*  Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-

 recurring items.



 

Consolidated balance sheet

as at 30 June 2016 (unaudited)

 




30 June 2016


30 June 2015


31 December 2015




   £'000


    £'000


   £'000

Non-current assets








Property, plant and equipment



18,604


16,187


17,750

Lease prepayments



49


51


50

Trade investments



164


164


164

Deferred tax asset



482


495


282

Retirement benefit pension surplus



1,512


1,695


2,443




20,811


18,592


20,689









Current assets








Stocks



5,709


5,002


4,199

Trade and other receivables



16,052


15,031


16,584

Overseas tax (denominated in Euros)



-


195


17

Cash and cash equivalents



20,590


19,697


20,715




42,351


39,925


41,515









Current liabilities








Trade and other payables



(11,414)


(10,716)


(11,090)

Current tax liabilities



(1,345)


(1,149)


(1,306)

Overseas tax (denominated in euros)



(44)


-


-

Bank loans



(4,985)


(980)


(980)

Obligations under finance leases



(129)


(101)


(101)

Provisions



-


(2)


-




(17,917)


(12,948)


(13,477)









Net current assets



24,434


26,977


28,038









Total assets less current liabilities



45,245


45,569


48,727









Non-current liabilities








Bank loans



-


(4,985)


(4,995)

Obligations under finance leases



(84)


(126)


(81)




(84)


(5,111)


(5,076)









Net assets



45,161


40,458


43,651









Equity








Called-up share capital



423


423


423

Share premium



13


13


13

Retained earnings



41,096


38,331


40,987

Translation reserve



3,374


1,436


1,973

Other reserves



245


245


245









Surplus attributable to equity holders of the parent

45,151


    40,448


43,641









Minority interest



10


10


10









Total equity



45,161


40,458


43,651

 



 

Consolidated cash flow statement

for the six months ended 30 June 2016 (unaudited)

 


6 months 

   ended

   30 June 

    2016


    6 months 

   ended

   30 June 

    2015

 

 

    12 months 

   ended

   31 December 

    2015


    £'000


    £'000


    £'000

Cash flows from operating activities






Cash generated from operations

7,111


4,996


14,623

Interest paid

(66)


(86)


(155)

Net UK corporation tax paid

(941)


(951)


(1,881)

Overseas tax paid

(263)


(190)


(463)







Net cash inflow from operating activities

5,841


3,769


12,124







Investing activities






Sale of property, plant and equipment

415


335


711

Purchase of property, plant and equipment

(2,237)


(1,711)


(5,234)

Interest received

124


100


197

Net cash outflow from investing activities

(1,698)


(1,276)


(4,326)







Financing activities






Loan repayments

(1,000)


(1,000)


(1,000)

Finance lease capital repayments

(53)


(49)


(94)

Equity dividends paid

(5,029)


(5,029)


(10,058)

Net cash outflow from financing activities

(6,082)


(6,078)


(11,152)







Net decrease in cash and cash equivalents

(1,939)


(3,585)


(3,354)







Cash and cash equivalents at the beginning of the period

20,715


24,077


24,077

Effect of foreign exchange rate changes

1,814


(795)


(8)







Cash and cash equivalents at end of the period

20,590


19,697


20,715

 

 

 






Reconciliation of net cash flow to movement in net funds in the period









Net decrease in cash and cash equivalents

(1,939)


(3,585)


(3,354)

Net cash outflow from the decrease in debt

1,053


1,049


1,094

Non-cash movement re the new financial leases

(84)


-


-

Non-cash movements re costs of raising loan finance

(10)


(10)


(20)

Decrease in net funds during the period

(980)


(2,546)


(2,280)

Opening net funds at the beginning of the period

14,558


16,846


16,846

Effect of foreign exchange rate changes

1,814


(795)


(8)

Closing net funds at the end of the period

15,392


13,505


14,558







 



 

Consolidated statement of comprehensive total income (CSOCTI)

for the six months ended 30 June 2016 (unaudited)

 


6 months

ended
30 June
2016

6 months

ended
30 June
2015

12 months

ended
31 December
2015


£'000

£'000

£'000





Profit for the financial period

6,195

3,732

10,800


  

  

  

Other comprehensive income/ (charges):








Items that may be reclassified to profit and loss:




Currency translation differences on foreign currency net investments

1,401

(712)

(175)





Items that will never be reclassified to profit and loss:




Remeasurement of defined benefit liabilities and assets

(1,305)

416

1,157

Related deferred tax

248

(83)

(207)


  

  

  

Other comprehensive income/(charges) for the period net of tax

344

(379)

775


  

  

  

Total comprehensive income for the period

6,539

3,353

11,575


   

   

   

 



 

Notes to the consolidated interim financial statements

for the six months ended 30 June 2016

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 2015 does not constitute the group's statutory accounts for 2015 as defined in Section 434 of the Companies Act 2006. Statutory accounts for 2015 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 28 September 2016, 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 2015.

3              Revenue

An analysis of the group's revenue is as follows:


6 months

ended

30 June

2016

£'000


6 months

ended

30 June

2015

£'000


12 months

ended

31 December

 2015

£'000

Continuing operations






Hire

25,450


22,996


49,910

Sales

2,806


3,186


5,993

Installations

2,031


2,058


4,155







Group consolidated revenue from the sale of goods and provision

of services

 

30,287


 

28,240


 

60,058

The geographical analysis of the group's revenue by origination is:


6 months

ended

 30 June

   2016


6 months

ended

30 June

2015


12 months

ended

31 December

 2015


   £'000


£'000


£'000







United Kingdom

20,172


19,239


39,830

Rest of Europe

4,787


3,989


9,925

Middle East and Africa

5,329


5,012


10,303








30,288


28,240


60,058



 

4              Taxation


6 months

ended

 30 June

   2016


6 months

ended

30 June

2015


12 months

ended

31 December

 2015


   £'000


£'000


£'000

Current tax






UK corporation tax at 20% (30 June 2015 and 31 December 2015:  20.25%)

 

980


 

779


 

2,043

Adjustments in respect of prior periods

-


-


(177)


980


779

   

1,866

Overseas tax

299


120


536

Adjustments to overseas tax in respect of prior periods

7


-


28

Total current tax charge

1,286


899


2,430







Deferred tax






Deferred tax on the origination and reversal of temporary differences

48


48


12

Adjustments in respect of prior periods

-


-


125

Total deferred tax charge

48


48


137







Total tax charge for the financial period attributable to

continuing operations

 

1,334


 

947


 

2,567

The tax charge for the financial period can be reconciled to the profit before tax per the income statement multiplied by the effective standard annualised corporation tax rate in the UK of 20% (30 June 2015 and 31 December 2015: 20.25%) as follows:


6 months

ended

30 June

2016


6 months

 ended

30 June

2015


12 months

ended

31 December

 2015


£'000


£'000


    £'000







Profit before taxation from continuing and total operations

7,529


4,679


13,367







Tax at the UK effective annualised corporation tax rate of 20%

  (30 June 2015 and 31 December 2015: 20.25%)

 

1,506


 

947


 

2,707

Effects of:






Expenses not deductible for tax purposes

45


58


86

Movement in overseas trading losses

(46)


122


88

Effect of different tax rates of subsidiaries operating abroad

(175)


(180)


(331)

Effect of change in rate of corporation tax

(3)


-


41

Adjustments to tax charge in respect of previous periods

7


-


(24)

Total tax charge for the financial period

1,334


947


2,567







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 20%; the reduction to 20% for the tax years ending 31 March 2016 and 31 March 2017 having been substantially enacted on 2 July 2013.  UK deferred tax has been provided at 19% being the rate substantially enacted at the balance sheet date at which the timing differences are expected to reverse.



 

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 2016


Continuing

earnings

Number of

Shares


£'000





Basic earnings/weighted average number of shares

6,195

42,262,082




Basic earnings per ordinary share (pence)

14.66p





 


6 months ended 30 June 2015


Continuing

earnings

Number of

shares


£'000





Basic earnings/weighted average number of shares

3,732

42,262,082




Basic earnings per ordinary share (pence)

8.83p





 


   12 months ended 31 December 2015


Continuing

earnings

Number of

shares


£'000





Basic earnings/weighted average number of shares

10,800

42,262,082




Basic earnings per ordinary share (pence)

25.55p


Diluted earnings per share

There were no dilutive instruments outstanding at 30 June 2016 or either of the comparative periods and, therefore, there is no difference in the basic and diluted earnings per share for any of these periods.  There were no discontinued operations in any period.



 

6              Dividend payments

Dividends declared and paid on ordinary one pence shares during the 6 months ended 30 June 2016 were as follows:


Paid during the 6 months ended 30 June 2016


Pence per share

Total dividend
paid



£'000




Final dividend for the year ended 31 December 2015 paid to members on the register on 27 May 2016 on 24 June 2016

 

11.90p

 

5,029




The above dividend was charged against reserves during the 6 months ended 30 June 2016.

On 28 September 2016 the directors declared an interim dividend of 11.90 pence per ordinary share which in total amounts to £5,029,000.  This will be paid on 2 November 2016 to shareholders on the register on 7 October 2016 and will be charged against reserves in the second half of 2016.

Dividends declared and paid on ordinary one pence shares during the 6 months ended 30 June 2015 were as follows:


Paid during the 6 months ended 30 June 2015


Pence per share

Total dividend
declared



£'000




Final dividend for the year ended 31 December 2014 paid to members on the register on 29 May 2015 on 19 June 2015 

 

11.90p

 

5,029




The above dividend was charged against reserves during the 6 months ended 30 June 2015.

Dividends declared and paid on ordinary one pence shares during the 12 month period ended 31 December 2015 were as follows:


Paid during the 12 months ended

31 December 2015


Pence per share

Total dividend
paid



£'000




Final dividend for the year ended 31 December 2014 paid to members on the register on 29 May 2015 on 19 June 2015 

 

11.90p

 

5,029

Interim dividend declared on 29 September 2015 and paid to shareholders on the register as at 9 October 2015 on 4 November 2015

 

11.90p

 

5,029


23.80p

10,058

The above dividends were charged against reserves during the 12 months ended 31 December 2015.



 

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 2016 the group had a net defined benefit pension scheme surplus, calculated in accordance with IAS 19 (revised) using the assumptions as set out below, of £1,512,000 (30 June 2015: £1,695,000;  31 December 2015: £2,443,000). The asset has been recognised in the financial statements as the directors are satisfied that it is recoverable in accordance with IFRIC 14.

Following the triennial recalculation of the funding deficit as at 31 December 2013 a revised schedule of contributions and recovery plan was agreed with the pension scheme trustees in June 2014.  In accordance with this schedule of contributions, which is effective from 1 January 2014, the group made additional contributions in 2014 to remove the funding deficit calculated as at 31 December 2013 and this has now been eliminated. Throughout 2015 and 2016 to date the group has continued to make a contribution towards expenses of £10,000 per month. In addition the group made an additional voluntary contribution of £32,000 per month from January 2016 and this was increased to £80,000 per month from April 2016. The group expects to continue to make the current level of contributions until 31 March 2017 at which time they will cease pending a review of the position in conjunction with the December 2016 triennial funding valuation.

Assumptions used to calculate the scheme surplus

A qualified independent actuary has updated the results of the December 2013 full actuarial valuation to calculate the surplus as disclosed below.

The major assumptions used to determine the present value of the scheme's defined benefit obligation were:

 


30 June

2016

30 June

2015

31 December

2015

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

Percentage of members taking maximum tax free lump sum on retirement

N/A

2.90%

2.80%

2.90%

1.90%

 

90%

N/A

3.10%

3.60%

3.20%

2.20%

                        

90%

N/A

3.00%

3.70%

3.00%

2.00%

 

90%

 

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 and subsequently.

Assumptions regarding future mortality experience are set based on advice in accordance with published statistics.  The mortality table used at 30 June 2016 is 110% S2NA CMI2015 (30 June 2015:  110% S1NA CMI2014; 31 December 2015: 110% S2NA CMI2015) with a 1% per annum long term improvement for both males and females (30 June 2015: 1% males and females; 31 December 2015: 1% males and females).

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

2016

30 June

2015

31 December

2015





Male, current age 45

Female, current age 45

22.6 years

24.9 years

22.5 years

25.2 years

22.6 years

24.9 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

2016

£'000


30 June

2015

£'000


31 December

2015

£'000







Total fair value of plan assets

40,768


38,385


37,734

Present value of defined benefit funded obligation calculated in
 accordance with stated assumptions

 

(39,256)


 

(36,690)


 

(35,291)

Surplus in the scheme calculated in accordance with stated
 assumptions recognised in the balance sheet

 

1,512


 

1,695


 

2,443

The movement in the fair value of the scheme's assets during the period was as follows: 


 30 June

 2016

  £'000


30 June

 2015

  £'000


31 December

 2015

£'000







Fair value of plan assets at the start of the period

37,734


38,864


38,864

Expected return on pension scheme assets

688


649


1,298

Actual return less expected return on pension scheme assets

2,737


(359)


(895)

Employer contributions - normal 

396


60


120

Benefits paid 

(717)


(774)


(1,521)

Administration expenses charged in the income statement

(70)


(55)


(132)

 






Fair value of plan assets at the end of the period

40,768


38,385


37,734







The movement in the present value of the defined benefit obligation during the period was as follows:


30 June

2016


30 June

2015


31 December 2015


£'000


£'000


£'000







Present value of defined benefit funded at the beginning of the period

(35,291)


(37,611)


(37,611)

Interest on defined benefit obligation

(640)


(628)


(1,253)

Actuarial (loss) / gain recognised in the CSOCTI calculated in

accordance with stated assumptions

 

(4,042)


 

775


 

2,052

Benefits paid

717


774


1,521







Closing present value of defined benefit funded obligation calculated

in accordance with stated assumptions

 

(39,256)


 

(36,690)


 

(35,291)







 



 

Amounts recognised in the income statement

The amounts (charged) / credited in the income statement were:


    30 June

    2016


  30 June

  2015


 31 December

  2015


   £'000


  £'000


  £'000







Expected return on pension scheme assets

688


649


1,298

Interest on pension scheme liabilities

(640)


(628)


(1,253)

Net pension interest credit included within finance income

48


21


45

Scheme administration expenses

(70)


(55)


(132)

Net pension charge in the income statement

(22)


(34)


(87)







Actuarial gains and losses recognised in the consolidated statement of comprehensive total income (CSOCTI)

The amounts (charged) / credited  in the CSOCTI were:


 30 June

 2016


 30 June

  2015


31 December

 2015


    £'000


    £'000

 

  £'000







Actual return less expected return on pension scheme assets

2,737


(359)


(895)

Experience gains and losses arising on plan obligation

281


123


371

Changes in demographic and financial assumptions underlying the

present value of plan obligations

 

(4,323)


 

652


1,681

Actuarial (loss) / gain calculated in accordance with stated assumptions

recognised in the CSOCTI

 

(1,305)


 

416


 

1,157







8              Called up share capital


 30 June

 2016


30 June

 2015


31 December

 2015


   £'000


  £'000


  £'000

Issued and fully paid:






42,262,082 ordinary shares of one pence each (30 June 2015 and 31 December 2015: 42,262,082 ordinary shares of one pence each)

 

    423


 

  423


 

   423







The company did not buy back any shares for cancellation during the 6 months ended 30 June 2016 or either of the comparative periods.  The company did not issue any shares in the period or either of the comparative periods.  No share options were granted, forfeited or expired during any of the periods and there were no share options outstanding at any period end.

The company has one class of ordinary shares which carry no right to fixed income.



 

9              Cash generated from operations


6 months

ended

30 June

2016


6 months

ended

30 June

2015


12 months

ended

31 December 2015


£'000


£'000


£'000







Profit for the period attributable to equity shareholders

6,195


3,732


10,800

Adjustments for:






Taxation charge

1,334


947


2,567

Finance costs

1,135


84


164

Finance income

(1,207)


(145)


(280)

Inter-company foreign exchange gains and losses

(1,062)


355


(43)

Profit on the sale of property, plant and equipment

(298)


(211)


(466)

Depreciation

2,702


2,531


4,959







EBITDA*

8,799


7,293


17,701







Excess of normal pension contributions compared with service and

administration expenses

 

(326)

 

 

 

(5)


 

12

Workings capital movements:






Stocks

(2,195)


(1,389)


(1,024)

Trade and other receivables

508


(660)


(2,196)

Trade and other payables

325


(236)


139

Provisions

-


(7)


(9)







Cash generated from operations

7,111


4,996


14,623







* Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-recurring items.

 

10           Analysis of net funds


 30 June

 2016


30 June

2015


31 December

 2015


£'000


    £'000


  £'000







Cash and cash equivalents per cash flow statement

20,590


19,697


20,715







Bank loans

(4,985)


(5,965)


(5,975)

Obligations under finance leases

(213)


(227)


(182)

Gross debt

(5,198)


(6,192)


(6,157)

Net funds

15,392


13,505


14,558

 



 

11     Adoption of Financial Reporting Standards (FRS) 101 and 102 - Reduced disclosure framework for parent and UK subsidiary company accounts

The group's consolidated financial statements for the year ended 31 December 2016 will continue to be prepared in accordance with European Union endorsed International Financial Reporting Standards (IFRSs) on a consistent basis with the previous financial year.

Last year, the parent company accounts of Andrews Sykes Group plc were prepared in accordance with FRS 102 and the company elected to take advantage of the reduced disclosure framework permitted by paragraph 1.12 of that standard. The company intends to continue to take advantage of the reduced disclosure framework again this year. Paragraph 1.11 requires the company to give shareholders the opportunity to object to the adoption of the reduced disclosure framework within a reasonable specified timeframe. Accordingly any shareholder wishing to object to the adoption of the reduced disclosure framework set out in paragraph 1.12 of FRS 102 for the parent company accounts of Andrews Sykes Group plc should write to the Company Secretary at the company's registered office no later than 30 November 2016 setting out the reasons for any objection. Any letter received after that date will not be valid.

The group's UK subsidiary companies' accounts for the year ended 31 December 2016 will continue to be prepared in accordance with the reduced disclosure framework of either FRS 101 or FRS 102 depending upon the circumstances relevant to each subsidiary.

12     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.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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