REG - Alumasc Group Plc - Annual Financial Report <Origin Href="QuoteRef">ALUG.L</Origin> - Part 3
03/09/2015 07:00
- Part 3: For the preceding part double click ID:nRSC9186Xb
comprehensive income (542) (590)
(542)
(590)
(b.) Reconciliation of the total tax charge
The total tax rate applicable to the tax expense shown in the statement of
total comprehensive income of 9.2% is lower than (2013/14: 20.6% was lower
than) the standard rate of corporation tax in the UK of 20.75% (2013/14:
22.5%). The differences are reconciled below:
2014/15 2013/14(re-stated)
£'000 £'000
Profit before tax from continuing operations 6,996 6,076
Loss before tax from discontinued operations (2,174) (987)
Accounting profit before tax 4,822 5,089
Current tax at the UK standard rate of 20.75% (2013/14: 22.5%) 1,001 1,145
Expenses not deductible for tax purposes 212 105
Chargeable gains/use of capital losses (774) -
Rate change adjustment 24 (176)
Tax under/(over) provided in previous years - current tax 39 (26)
Tax over provided in previous years - deferred tax (56) -
446 1,048
446
1,048
The group's total tax charge in 2014/15 of £446,000 (2013/14: £1,048,000)
benefited from the impact of business disposals where capital gains on sale of
assets were shielded by indexation allowances and capital losses brought
forward.
(c.) Unrecognised tax losses
Following utilisation of £1 million of capital losses brought forward, the
group has agreed tax capital losses in the UK amounting to £20 million (2014:
£21 million) that relate to prior years. Under current legislation these
losses are available for offset against future chargeable gains. A deferred
tax asset has not been recognised in respect of these losses, as they do not
meet the criteria for recognition.
Revaluation gains on land and buildings amount to £1 million (2014: £1
million). These have been offset against the capital losses detailed above,
therefore net capital losses carried forward amount to £19 million (2014: £20
million). The capital losses are able to be carried forward indefinitely.
(d.) Deferred tax
A reconciliation of the movement in deferred tax during the year is as
follows:
Acceleratedcapitalallowances Short termtemporarydifferences Totaldeferred Pensiondeferred
Brands Hedging tax liability taxasset
£'000 £'000 £'000 £'000 £'000 £'000
At 1 July 2013 895 (44) 650 14 1,515 (2,314)
(Credited)/charged to the statement of comprehensive income - current year (171) 34 (138) - (275) 348
Credited to equity - - - (20) (20) (1,618)
At 1 July 2014 724 (10) 512 (6) 1,220 (3,584)
(Credited)/charged to the statement of comprehensive income - current year (649) (28) (54) - (731) 342
Credited to the statement of comprehensive income - prior year (56) - - - (56) -
Credited to equity - - - (43) (43) (945)
At 30 June 2015 19 (38) 458 (49) 390 (4,187)
390
(4,187)
Deferred tax assets and liabilities are presented as non-current in the
consolidated statement of financial position.
Deferred tax assets have been recognised where it is probable that they will
be recovered. Deferred tax assets of £3.8 million (2014: £4.0 million) have
not been recognised in respect of net capital losses of £19 million (2014: £20
million).
(e.) Factors affecting the tax charge in future periods
In the Budget on 8 July 2015, the UK Government announced its intention to
further reduce the main rate of UK corporation tax to 19% with effect from 1
April 2017 and to 18% with effect from 1 April 2020. Existing temporary
differences on which deferred tax has been provided may therefore unwind in
future periods at these reduced rates. These rate changes were included in the
Summer Finance Bill 2015 but this was not substantively enacted at the Balance
Sheet date. Deferred tax assets and liabilities have been calculated based on
the rate of 20% substantively enacted at the Balance Sheet date.
8 dividends
2014/15 2013/14
£'000 £'000
Interim dividend for 2015 of 2.5p paid on 7 April 2015 891 -
Final dividend for 2014 of 2.8p paid on 5 November 2014 998 -
Interim dividend for 2014 of 2.2p paid on 8 April 2014 - 784
Final dividend for 2013 of 2.5p paid on 31 October 2013 - 891
1,889 1,675
A final dividend of 3.5p per equity share, at a cash cost of £1,248,000, has
been proposed for the year ended 30 June 2015, payable on 28 October 2015. In
accordance with IFRS accounting requirements this dividend has not been
accrued in these consolidated financial statements.
9 earnings per share
Basic earnings per share is calculated by dividing the net profit for the
period attributable to ordinary equity shareholders of the parent by the
weighted average number of ordinary shares in issue during the period.
Diluted earnings per share is calculated by dividing the net profit
attributable to ordinary equity shareholders of the parent by the weighted
average number of ordinary shares in issue during the period, after allowing
for the exercise of outstanding share options. The following sets out the
income and share data used in the basic and diluted earnings per share
calculations:
2014/15 2013/14(re-stated)
£'000 £'000
Profit attributable to equity holders of the parent - continuing operations 5,357 4,789
Profit attributable to equity holders of the parent - discontinued operations (981) (748)
Net profit attributable to equity holders of the parent 4,376 4,041
000s 000s
Basic weighted average number of shares 35,648 35,648
Dilutive potential ordinary shares - employee share options 567 447
36,215 36,095
36,215
36,095
Calculation of underlying earnings per share from continuing operations:
2014/15 2013/14(re-stated)
£'000 £'000
Reported profit before taxation from continuing operations 6,996 6,076
Add: brand amortisation 268 268
Add: IAS19 pension scheme administration costs 455 452
Add: IAS19 net pension scheme finance costs 711 448
Underlying profit before taxation from continuing operations 8,430 7,244
Tax at underlying group tax rate of 22.0% (2013/14: 24.2%) (1,855) (1,753)
Underlying earnings from continuing operations 6,575 5,491
Basic weighted average number of shares 35,648 35,648
Underlying earnings per share from continuing operations 18.4p 15.4p
Underlying earnings per share from continuing operations
18.4p
15.4p
10 movements in equity
Share capital and share premium
The balances classified as share capital and share premium are the proceeds of
the nominal value and premium value respectively on issue of the company's
equity share capital net of issue costs.
Capital reserve - own shares
The capital reserve - own shares relates to 485,171 (2014: 485,171) ordinary
own shares held by the company. The market value of shares at 30 June 2015
was £802,958 (2014: £565,224). These are held to help satisfy the exercise of
awards under the company's Long Term Incentive Plans. A Trust holds the
shares in its name and shares are awarded to employees on request by the
company. The company bears the expenses of the Trust.
Hedging reserve
This reserve records the post-tax portion of the gain or loss on a hedging
instrument in a cash flow hedge that is determined to be an effective hedge.
Foreign currency reserve
This foreign currency reserve is used to record exchange differences arising
from the translation of the financial statements of foreign subsidiaries.
11 Related party disclosure
The group's principal subsidiaries are listed below:
Principal subsidiaries Principal activity Country of incorporation % of equity interest and votes held
2015 2014
Alumasc Exterior Building Products Limited Building products England 100 100
Alumasc Limited Building products England 100 100
Levolux Limited Building products England 100 100
Alumasc Precision Limited Engineering products England 100 100
Terms and conditions of transactions with related parties
Sales to and purchases from related parties are made at arms-length market
prices. Outstanding balances at the year end are unsecured and settlement
occurs in cash. There have been no guarantees provided or received for any
related party receivables.
Transactions with other related parties
Key management personnel are determined as the Directors of The Alumasc Group
plc.
This information is provided by RNS
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