REG - Accsys Technologies - Preliminary Results for year ended 31 March 2016 <Origin Href="QuoteRef">ACCS.L</Origin> - Part 5
15/06/2016 07:06
- Part 5: For the preceding part double click ID:nRSO2046Bd
not required (19) 2
Balance at the end of the period 25,002 25,021
Summary of Receivable Impairments:
2016 2015
E'000 E'000
Trade receivables - Accoya wood * 1 20
1 20
* The impairment of Accoya® wood receivables relates to two Accoya® customers.
23. Trade and other payables
2016 2015
E'000 E'000
Trade payables 4,301 3,847
Other taxes and social security payable 321 202
Other payables 402 1,000
Accruals and deferred income* 3,039 4,576
8,063 9,625
* Accruals and deferred income in the prior period includes £1.4m of deferred income resulting from the
acquisition of Tricoya Technologies Limited.
24. Share capital
2016 2015
E'000 E'000
Allotted - Equity share capital
89,890,019 Ordinary shares of E0.05 each (2015: 88,800,894 Ordinary shares of E0.05 each) 4,495 4,440
4,495 4,440
Further to the passing of all resolutions at the Company's AGM held on 11 September 2014, the entire issued share capital
of the Company was consolidated on a 5:1 basis with effect from 12 September 2014. Accordingly, all figures concerning the
number of shares stated below represent the new E0.05 Ordinary Shares.
In year ended 31 March 2015:
Own shares represents 783,597 E0.05 Ordinary Shares issued to an Employee Benefit Trust ('EBT') at nominal value on 18
August 2014. 953,133 E0.05 Ordinary Shares had been issued to the EBT at nominal value on 9 July 2013 of which 945,133
Ordinary Shares vested on 8 August 2014.
On 18 August 2014, a total of 27,825 of E0.05 Ordinary shares were issued to a trust under the terms of the Employee Share
Participation Plan.
On 12 August 2014, a total of 99,559 of E0.05 Ordinary shares were issued and released to employees together with the
99,559 of E0.05 Ordinary shares issued to trust on 12 August 2013.
In 19 January 2015, a total of 53,922 of E0.05 ordinary shares were issued to a trust under the terms of the Employee Share
Participation Plan.
In year ended 31 March 2016:
891,044 shares issued on 6 July 2015 and 16,123 shares issued on 10 December 2015 to an Employee Benefit Trust ('EBT') at
nominal value.
On 6 July 2015, a total of 20,000 of E0.05 Ordinary shares were released to an employee following the exercise of options
granted in a prior year.
On 14 August 2015, a total of 27,825 of E0.05 Ordinary shares were issued and released to employees together with 27,825 of
E0.05 Ordinary shares issued to trust on 18 August 2014.
On 14 August 2015, a total 63,909 of E0.05 Ordinary shares were issued to a trust under the terms of the Employee Share
Participation Plan. On 11 December 2015, a total of 16,302 of E0.05 Ordinary shares were issued to a trust under the terms
of the Employee Share Participation Plan.
On 20 January 2016, a total of 53,922 of E0.05 Ordinary shares were issued and released to employees together with 53,922
of E0.05 Ordinary shares issued to trust on 19 January 2015.
25. Other reserves
Capital redemp- Warrant reserve Merger reserve Other reserve Total Other reserves
tion reserve
E000 E000 E000 E000 E000
Balance at 148 - 106,707 - 106,855
31 March 2015
Issue of subsidiary shares to non-controlling interests (299) - - 885 586
Balance at (151) - 106,707 885 107,441
31 March 2016
The opening balance of the capital redemption reserve which represents the amounts transferred from share capital on
redemption of deferred shares in a previous period. The movement in the current period reflects obligations arising from
the investment by BP Ventures into Tricoya Technologies Limited and that BP Venture's on-going participation is conditional
upon the finalisation of the full proposed consortium.
The merger reserve arose prior to transition to IFRS when merger accounting was adopted.
The other reserve represents the amounts received for subsidiary share capital from non-controlling interests (see note
26).
In the prior year, on 31 March 2015, Accsys agreed to acquire the remaining 50% equity in Tricoya Technologies Limited from
Ineos. As a result of this agreement and the termination of the joint venture agreement, all of the warrant instruments
which had been executed in 2012 in favour of Ineos lapsed.
26. Transactions with non-controlling interests
On 3 February 2016, Tricoya Technologies Limited ("TTL") issued 500,000 Series A Preference shares for the consideration of
E1m for 3% equity share capital of TTL. The carrying amount of the non-controlling interests in TTL on the date of
acquisition was E71,000. The group recognised an increase in other reserves as summarised below.
Transactions with non-controlling interests
2016 2015
E'000 E'000
Carrying amount of non-controlling interests issued (71) -
Consideration paid by non-controlling interests 1,000 -
Share issue costs relating to non-controlling interests (44) -
Excess of consideration paid recognised in Group's equity 885 -
27. Commitments under operating leases
The Group leases land, buildings and machinery under non-cancellable operating lease agreements. The total future value of
the minimum lease payments that are due is as follows:
2016 2015
E'000 E'000
Operating lease payments due
Within one year 1,075 963
In the second to fifth years inclusive 2,901 1,067
In greater than five years 1,205 1,477
5,181 3,507
The majority of commitments under operating leases relate to the Group's offices in the UK, The Netherlands and U.S.A. and
land in The Netherlands which is adjacent to our plant.
28. Commitments under finance leases
Agreements were reached in August 2011 for the sale and leaseback of the land and buildings in Arnhem for a total of E4m.
E2.2m was received in 2011 with the remaining amount received in the following year, but accounted for as an operating
lease.
In addition, in the during the current period agreements were entered into for the lease of office fit-out and furniture
for the London head office for a total of E0.4m. (see note 16).
These transactions have resulted in a finance lease creditor of E2.3m as at 31 March 2016.
Minimum lease payments
2016 2015
E'000 E'000
Amounts payable under finance leases:
Within one year 375 280
In the second to fifth years inclusive 1,403 1,120
After five years 1,490 1,773
Less: future finance charges (967) (1,110)
Present value of lease obligations 2,301 2,063
29. Financial instruments
Financial instruments
Finance lease
Agreements were reached in August 2011 for the sale and leaseback of the land and buildings in Arnhem under which a total
of E4m was received. E2.2m was received in 2011 with the remaining amount received in the following. The transaction has
resulted in a finance lease creditor of E1,977,000 as at 31 March 2016 (2015: E2,063,000). The total lease term is 15
years.
In addition, in the current period agreements were entered into for lease of the fit-out and office furniture for the
London head office for a total of E0.4m. These transactions have resulted in a finance lease creditor of E325,000 as at 31
March 2016 (2015: Enil). (See note 27 and 28).
Warrants
In 2012 the Company executed a warrant instrument in favour of Ineos, allowing Ineos the opportunity to purchase up to a
further 3,293,647 shares at a price of E1.05 per share at certain times up until 19 October 2016. All 3,293,647 warrants
lapsed on 31 March 2015.
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while
maximising the return to shareholders.
The capital structure of the Group consists of cash and cash equivalents and equity attributable owners of the parent
Company, comprising share capital, reserves and accumulated losses.
The Board reviews the capital structure on a regular basis. As part of that review, the Board considers the cost of
capital and the risks associated with each class of capital. Based on the review, the Group will balance its overall
capital structure through new share issues and the raising of debt if required.
No final dividend is proposed in 2016 (2015: Enil). The Board deems it prudent for the Company to protect as strong a
statement of financial position as possible during the current phase of the Company's growth strategy.
Categories of financial instruments 2016 2015
E'000 E'000
Available for Sale investments - -
Loans and receivables
Trade receivables 4,051 3,024
Other receivables 180 1,086
Money market deposits in Euro 2,621 5,348
Money at call in Euro 5,210 3,807
Money at call in US dollars 175 781
Money at call in Sterling 95 635
Money at call in New Zealand dollars 85 215
Financial liabilities at amortised cost
Trade payables (4,301) (3,847)
Finance lease payable (2,301) (2,063)
Other Payables (402) (1,000)
5,413 7,986
Money market deposits have interest rates fixed for less than three months at a weighted average rate of 0.59% (2015:
0.86%). Money market deposits are held at financial institutions with high credit ratings (Standard & Poor's rating of
AA).
All assets and liabilities mature within one year except for the finance leases, for which details are given in note 28.
Trade payables are payable on various terms, typically not longer than 30 days.
Market risk
The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates.
Financial risk management objectives
The Group's treasury policy is structured to ensure that adequate financial resources are available for the development of
its business whilst managing its currency, interest rate, counterparty credit and liquidity risks. The Group's treasury
strategy and policy are developed centrally and approved by the Board.
Foreign currency risk management
Currency exposures are limited as the Group's functional currency is the Euro with the majority of operating costs and
balances denominated in Euros. A smaller proportion of expenditure is incurred in US dollars and pounds sterling. In
addition some raw materials, while priced in Euros, are sourced from countries which are not within the Eurozone. The Group
monitors any potential underlying exposure to other exchange rates.
Interest rate risk management
The Group's borrowings are limited to the sale and leaseback of the Arnhem land and buildings, and the lease of the office
fit out and furniture in London. In addition, the interest rate in respect of the loan facility agreed with Solvay is
fixed. Therefore the Group is not exposed to interest rate risk in relation to financial liabilities. Surplus funds are
invested in short term interest rate deposits to reduce exposure to changes in interest rates. The Group does not enter
into any hedging arrangements.
Credit risk management
The Group is exposed to credit risk due to its trade receivables due from customers and cash deposits with financial
institutions. The Group's maximum exposure to credit risk is limited to their carrying amount recognised at the balance
sheet date.
The Group ensures that sales are made to customers with an appropriate credit history to reduce the risk where this is
considered necessary. The Directors consider the trade receivables at year end to be of good credit quality including those
that are past due (see note 22). The Group is not exposed to any significant credit risk exposure in respect of any single
counterparty or any group of counterparties with similar characteristics other than the balances which are provided for as
described in note 22.
The Group has credit risk from financial institutions. Cash deposits are placed with a group of financial institutions with
suitable credit ratings in order to manage credit risk with any one financial institution.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board, which has built an appropriate liquidity risk
management framework for the management of the Group's short, medium and long term funding and liquidity management
requirements. The Group manages liquidity risk by maintaining adequate reserves and banking facilities by continuously
monitoring forecast and actual cash flows and matching the maturity profile of financial assets and liabilities.
In addition to the sale and leaseback of the Arnhem land and buildings described above, the Group has finance facilities
available which are secured on trade receivables and inventories:
Trade receivables facility
On 28 February 2011 the Group entered a trade receivable financing and credit management agreement with Fortis Commercial
Banking for a period of at least two years from the closing date and with a facility limit of E1.5m. After two years the
agreement renews for rolling one year periods. The facility is secured upon the Group's trade receivable.
Inventories facility
On 17 January 2013 the Group entered a credit facility agreement with ABN AMRO Bank N.V. with a facility limit of E3.0m for
the financing of the Group's operating activities. The facility is secured against the inventories of the Group.
Both facilities are subject to interest at 1.5% above the ABN AMRO base rate of 3.6% as at 31 March 2016 (2015: 3.8%). At
31 March 2016, the Group had Enil (2015: Enil) borrowed under both of the facilities.
Solvay Loan
On 25 November 2015 the Group entered a term loan facility agreement with Solvay Acetow GMBH with a facility of up to E9.5m
to be used to design, procure and build an extension to the capacity of the Arnhem Plant, with a new reactor (or reactors)
for the manufacture of Accoya at a design capacity of approximately 20,000m3 per reactor per annum. The facility is secured
against the new reactor and associated assets. This facility is subject to interest at 7.5% per annum. At 31 March 2016,
the Group had Enil borrowed under this facility.
Fair value of financial instruments
In the opinion of the Directors, there is no material difference between the book value and the fair value of all financial
assets and financial liabilities.
30. Capital Commitments
2016 2015
E'000 E'000
Contracted but not provided for in respect of property, plant and equipment 695 -
This information is provided by RNS
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