RNS Number : 5019A
Andrews Sykes Group PLC
30 September 2020
Andrews Sykes Group plc
Interim Financial Statements 2020
Andrews Sykes Group plc announces unaudited results for the six months ended 30 June 2020.
Summary of results
(Unaudited)
6 months ended 30 June 2020
6 months Ended 30 June 2019
£'000
£'000
Revenue from continuing operations
33,480
34,974
EBITDA* from continuing operations
11,781
11,435
Operating profit
7,000
6,918
Profit for the financial period
6,070
5,449
Basic earnings per share (pence)
14.39p
12.92p
Special interim dividend declared per equity share (pence)
23.70p
-
Second interim dividend declared per equity share (pence)
11.90p
11.90p
Cash and cash equivalents
32,096
23,770
Net funds
16,770
8,329
* Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-recurring items.
Enquiries
Andrews Sykes Group plc
Paul Wood (MD)
+44 (0) 1902 328 700
GCA Altium (Nominated Adviser)
Tim Richardson
+44 (0) 20 7484 4040
Chairman's Statement
Overview
Andrews Sykes' trading continues to be resilient as sectors in which we trade show ongoing demand, despite the unprecedented challenge in the form of the coronavirus pandemic. We continue to be thankful and proud of our team members as they respond as essential service providers.
The group's revenue for the 6 months ended 30 June 2020 was £33.5 million, a decrease of £1.5 million compared with the same period in 2019. However, the operating profit for the period was £7.0 million compared with £6.9 million in 2019, an increase of £0.1 million, reflecting a favourable business mix. Overall, net funds increased by £4.7 million from £12.1 million as at 31 December 2019 to £16.8 million as at 30 June 2020.
Operations review
Our main hire and sales businesses in Europe had mixed fortunes. Turnover at Andrews Sykes Hire in the UK improved by 4.8% compared with the same period in 2019. However, our businesses in the rest of Europe were significantly affected by a combination of the coronavirus pandemic and mild weather. Consequently, the combined operating profit for these businesses in the first half was £1.0 million below the level achieved in 2019.
Andrews Air Conditioning and Refrigeration, our UK air conditioning installation business, was particularly affected by the coronavirus pandemic as our engineers were not allowed access to certain customer sites in order to carry out their work. This business returned a small operating loss in the first half, £0.2 million below the profit returned in 2019.
Khansaheb Sykes, our business based in the UAE, had a difficult start to the period due to the coronavirus pandemic and reduced demand during Ramadan. The operating profit of Khansaheb Sykes decreased by £0.1 million compared with the first half of 2019.
Unallocated overheads and central expenses reduced by £0.2 million in the period compared with 2019 resulting in an improvement of £0.1 million in operating profit to £7.0 million in 2020 (2019: £6.9 million).
Profit for the financial period and Earnings per Share
Profit before tax was £7.2 million compared with £6.8 million in the same period last year. This increase is attributable to the £0.1 million improvement in operating profit, a net foreign exchange gain on inter-company balances of £0.4 million (2019: £Nil) due to the weakening of Sterling compared with the Euro and the UAE Dirham, and a net increase of £0.1 million in interest charges.
The total tax charge for the period decreased by £0.2 million to £1.1 million (2019: £1.3 million), an effective tax rate of 16.1% (2019: 19.4%), mainly due to prior year tax credits and an overall lower effective tax rate applicable to subsidiaries operating abroad.
Profit after tax was £6.1 million (2019: £5.5 million). Basic earnings per share increased by 1.47 pence, or 11.4%, to 14.39 pence (2019: 12.92 pence) reflecting this increase in profit.
Dividends
The final dividend of 10.50 pence per ordinary share for the year ended 31 December 2019 was approved by members at the AGM held on 16 June 2020. Accordingly, on 19 June 2020 the company made a total dividend payment of £4.43 million which was paid to shareholders on the register as at 29 May 2020.
Post the period end, on 28 August 2020 the company paid a special interim dividend of 23.7 pence per ordinary share, or £10.0 million in total, to shareholders on the register as at 7 August 2020. This dividend was paid out of the group's substantial brought forward cash reserves accumulated from previous years trading, a proportion of which were surplus to the group's requirements and were therefore returned to shareholders.
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 a second interim dividend for 2020 of 11.90 pence per ordinary share which in total amounts to £5.0 million. This will be paid on 6 November 2020 to shareholders on the register as at 9 October 2020. The ordinary shares will go ex-dividend on 8 October 2020.
Outlook
Whilst certain of the group's business operations continue to be affected by the coronavirus pandemic, for example the performance of our air conditioning business in July and August suffered as occupation levels of our customers' offices remained low as people continued to work from home, demand for cooling equipment was buoyant and pumps in the UK continues to perform in line with last year's levels. Management remain optimistic that the business will improve as the economy recovers but are mindful that we live in uncertain times and circumstances can change very quickly.
JG Murray Chairman
29 September 2020
Consolidated income statement
for the 6 months ended 30 June 2020 (unaudited)
6 months ended 30 June 2020 £'000
6 months ended 30 June 2019 £'000
12 months ended 31 December 2019 £'000
Continuing operations
Revenue
33,480
34,974
77,246
Cost of sales
(14,544)
(15,535)
(32,244)
Gross profit
18,936
19,439
45,002
Distribution costs
(5,541)
(5,762)
(11,996)
Administrative expenses
(6,395)
(6,759)
(13,708)
Operating profit
7,000
6,918
19,298
EBITDA*
11,781
11,435
28,519
Depreciation and impairment losses
(3,785)
(3,697)
(7,203)
Depreciation of right-of-use assets
(1,328)
(1,098)
(2,538)
Profit on the sale of plant and equipment and right-of-use assets
332
278
520
Operating profit
7,000
6,918
19,298
Finance income
84
61
146
Finance costs
(38)
(46)
(88)
Interest charge on right-of-use lease obligations
(238)
(157)
(526)
Inter-company foreign exchange gains and losses
427
(16)
(270)
Profit before taxation
7,235
6,760
18,560
Taxation
(1,165)
(1,311)
(3,541)
Profit for the financial period
6,070
5,449
15,019
There were no discontinued operations in either of the above periods
Earnings per share from continuing operations
Basic and diluted (pence)
14.39p
12.92p
35.61p
Dividends per equity share paid during the period (pence)
10.5p
11.90p
23.80p
Dividends per equity share paid after the period end (pence)
23.70p
-
-
Proposed dividend per equity share (pence)
11.90p
11.90p
10.5p
* 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 2020 (unaudited)
30 June 2020
30 June 2019
31 December 2019
£'000
£'000
£'000
Non-current assets
Property, plant and equipment
24,092
24,046
24,561
Right-of-use assets
11,506
11,387
11,515
Prepayments
43
44
44
Deferred tax asset
660
435
254
Retirement benefit pension surplus
479
1,286
1,963
36,780
37,198
38,337
Current assets
Stocks
7,353
5,969
6,333
Trade and other receivables
19,126
20,115
21,333
Overseas tax (denominated in Euros)
187
278
-
Cash and cash equivalents
32,096
23,770
27,880
58,762
50,132
55,546
Current liabilities
Trade and other payables
(14,882)
(11,444)
(12,942)
Current UK tax liabilities
(630)
(1,104)
(1,440)
Overseas tax (denominated in euros)
-
-
(234)
Bank loans
(493)
(493)
(493)
Right-of-use lease obligations
(2,411)
(2,141)
(2,279)
(18,416)
(15,182)
(17,388)
Net current assets
40,346
34,950
38,158
Total assets less current liabilities
77,126
72,148
76,495
Non-current liabilities
Bank loans
(2,994)
(3,487)
(3,490)
Right-of-use lease obligations
(9,427)
(9,320)
(9,482)
(12,421)
(12,807)
(12,972)
Net assets
64,705
59,341
63,523
Equity
Called-up share capital
422
422
422
Share premium
13
13
13
Retained earnings
59,390
54,363
59,447
Translation reserve
4,634
4,297
3,395
Other reserves
246
246
246
Total equity
64,705
59,341
63,523
Consolidated cash flow statement
for the six months ended 30 June 2020 (unaudited)
6 months ended 30 June 2020 £'000
6 months ended 30 June 2019 £'000
12 months ended 31 December 2019 £'000
Cash flows from operating activities
Cash generated from operations
14,448
7,530
22,917
Interest paid
(274)
(201)
(609)
Net UK corporation tax paid
(1,619)
(1,300)
(2,227)
Overseas tax paid
(814)
(1,233)
(1,559)
Net cash inflow from operating activities
11,741
4,796
18,522
Investing activities
Sale of property, plant and equipment
382
382
685
Purchase of property, plant and equipment
(2,128)
(2,812)
(6,207)
Interest received
57
43
100
Net cash outflow from investing activities
(1,689)
(2,387)
(5,422)
Financing activities
Loan repayments
(500)
(500)
(500)
Capital repayments for right-of-use lease obligations
(1,245)
(1,030)
(2,296)
Equity dividends paid
(4,428)
(5,019)
(10,038)
Net cash outflow from financing activities
(6,173)
(6,549)
(12,834)
Net increase/(decrease) in cash and cash equivalents
3,879
(4,140)
266
Cash and cash equivalents at the beginning of the period
27,880
27,862
27,862
Effect of foreign exchange rate changes
337
48
(248)
Cash and cash equivalents at end of the period
32,096
23,770
27,880
Reconciliation of net cash flow to movement in net funds in the period
Net increase/(decrease) in cash and cash equivalents
3,879
(4,140)
266
Net cash outflow from the decrease in debt
1,745
1,530
2,796
Non-cash movements re new right-of-use lease obligations
(1,171)
(1,134)
(2,593)
Non-cash movements re costs of raising loan finance
(4)
(4)
(7)
Non-cash movements re termination of right-of-use lease obligations
160
-
-
Increase/(decrease) in net funds during the period
4,609
(3,748)
462
Opening net funds at the beginning of period
12,136
23,381
23,381
Transitional adjustment for right-of-use assets at start of period
-
(11,363)
(11,699)
Effect of foreign exchange rate changes
337
48
(248)
Effect of foreign exchange rate changes on right-of-use lease obligations
(312)
11
240
Closing net funds at the end of period
16,770
8,329
12,136
Consolidated statement of comprehensive total income (CSOCTI)
for the six months ended 30 June 2020 (unaudited)
6 months ended 30 June 2020 £'000
6 months ended 30 June 2019 £'000
12 months ended 31 December 2019 £'000
Profit for the financial period
6,070
5,449
15,019
Other comprehensive income:
Items that may be reclassified to profit and loss:
Currency translation differences on foreign currency operations
1,243
(2)
(906)
Foreign exchange differences on IFRS 16 adjustments
(5)
-
1
Related deferred tax
1
-
-
Items that will never be reclassified to profit and loss:
Remeasurement of defined benefit liabilities and assets
(2,098)
(96)
559
Related deferred tax
399
16
(106)
Other comprehensive income for the period net of tax
(460)
(82)
(452)
Total comprehensive income for the period
5,610
5,367
14,567
Notes to the consolidated interim financial statements
for the six months ended 30 June 2020 (unaudited)
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 2019 does not constitute the group's statutory accounts for 2019 as defined in Section 434 of the Companies Act 2006. Statutory accounts for 2019 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 29 September 2020, 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 (i) fair value less anticipated disposal costs and (ii) carrying value;
(iii) Derivative financial instruments (including embedded derivatives) which are valued at fair value; and
(iv) Pension scheme assets and liabilities calculated at fair value in accordance with IAS 19.
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 2019.
3 Revenue
An analysis of the group's revenue is as follows:
6 months ended 30 June 2020 £'000
6 months ended 30 June 2019 £'000
12 months ended 31 December 2019 £'000
Continuing operations
Revenue outside the scope of IFRS 15 and recognised as lease income in accordance with IFRS 16:
Hire
29,185
30,042
67,411
Revenue recognised at a point in time in accordance with IFRS 15:
Sales
3,161
2,863
5,782
Maintenance
560
957
1,876
Installation and sale of units
574
1,112
2,177
Group consolidated revenue from the sale of goods and provision of services
33,480
34,974
77,246
The geographical analysis of the group's revenue by origination is:
6 months ended 30 June 2020 £'000
6 months ended 30 June 2019 £'000
12 months ended 31 December 2019 £'000
United Kingdom
20,903
20,886
45,711
Rest of Europe
6,891
8,147
18,305
Middle East and Africa
5,686
5,941
13,230
33,480
34,974
77,246
The geographical analysis of the group's revenue by destination is not materially different to that by origination.
4 Taxation
6 months ended 30 June 2020 £'000
6 months ended 30 June 2019 £'000
12 months ended 31 December 2019 £'000
Current tax
UK corporation tax at 19% (30 June 2019 and 31 December 2019: 19%)
901
731
2,020
Adjustments in respect of prior periods
(92)
(185)
(211)
809
546
1,809
Overseas tax
382
508
1,390
Adjustments to overseas tax in respect of prior periods
(20)
(1)
25
Total current tax charge
1,171
1,053
3,224
Deferred tax
Deferred tax on the origination and reversal of temporary differences
(6)
73
137
Adjustments in respect of prior periods
-
185
180
Total deferred tax (credit)/charge
(6)
258
317
Total tax charge for the financial period attributable to continuing operations
1,165
1,311
3,541
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 19% (30 June 2019 and 31 December 2019: 19%) as follows:
6 months ended 30 June 2020 £'000
6 months ended 30 June 2019 £'000
12 months ended 31 December 2019 £'000
Profit before taxation from continuing and total operations
7,235
6,760
18,560
Tax at the UK effective annualised corporation tax rate of 19% (30 June 2019 and 31 December 2019: 19%)
1,375
1,284
3,526
Effects of:
Expenses not deductible for tax purposes
64
72
150
Utilisation of overseas trading losses
(9)
(12)
-
Effects of different tax rates of subsidiaries operating abroad
(184)
(110)
(188)
Overseas tax losses not recognised
31
29
59
Effect of change in rate of corporation tax
-
49
-
Adjustments to tax charge in respect of previous periods
(112)
(1)
(6)
Total tax charge for the financial period
1,165
1,311
3,541
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.UK corporation tax has been provided at 19%, the reduction in the UK corporation tax rate to 17% that was to be effective from 1 April 2020 was reversed on 11 March 2020. There are currently no plans announced to change the rate of UK corporation tax from its current rate.
Deferred tax has been calculated based on the rates that the directors anticipate will apply when the temporary 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 2020
Continuing earnings
Number of Shares
£'000
Basic earnings/weighted average number of shares
6,070
42,174,359
Basic earnings per ordinary share (pence)
14.39p
6 months ended 30 June 2019
Continuing Earnings
Number of Shares
£'000
Basic earnings/weighted average number of shares
5,449
42,174,359
Basic earnings per ordinary share (pence)
12.92p
12 months ended 31 December 2019
Continuing Earnings
Number of Shares
£'000
Basic earnings/weighted average number of shares
15,019
42,174,359
Basic earnings per ordinary share (pence)
35.61p
Diluted earnings per share
There were no dilutive instruments outstanding at 30 June 2020 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 2020 were as follows:
Paid during the 6 months ended 30 June 2020
Pence per share
Total dividend paid
£'000
Final dividend for the year ended 31 December 2019 paid to members on the register as at 29 May 2020 on 19 June 2020
10.50p
4,428
The above dividend was charged against reserves during the 6 months ended 30 June 2020.
On 23 July 2020 the directors declared a special interim dividend of 23.7 pence per ordinary share which in total amounts to £9,995,000. This was paid on 28 August 2020 to shareholders on the register as at 7 August 2020 and will be charged against reserves in the second half of 2020.
On 29 September 2020 the directors declared an interim dividend of 11.90 pence per ordinary share which in total amounts to £5,019,000. This will be paid on 6 November 2020 to shareholders on the register as at 9 October 2020 and will also be charged against reserves in the second half of 2020.
Dividends declared and paid on ordinary one pence shares during the 6 months ended 30 June 2019 were as follows:
Paid during the 6 months ended 30 June 2019
Pence per share
Total dividend paid
£'000
Final dividend for the year ended 31 December 2018 paid to members on the register as at 31 May 2019 on 21 June 2019.
11.90p
5,019
The above dividend was charged against reserves during the 6 months ended 30 June 2019.
Dividends declared and paid on ordinary one pence shares during the 6 months ended 31 December 2019 were as follows:
Paid during the 12 months ended 31 December 2019
Pence per share
Total dividend paid
£'000
Final dividend for the year ended 31 December 2018 paid to members on the register as at 31 May 2019 on 21 June 2019
11.90p
5,019
Interim dividend declared on 26 September 2019 and paid to shareholders on the register as at 11 October 2019 on 8 November 2019
11.90p
5,019
23.80p
10,038
The above dividends were charged against reserves during the 12 months ended 31 December 2019.
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 2020 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 £479,000 (30 June 2019: £1,286,000; 31 December 2019: £1,963,000). 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 2016, a revised schedule of contributions and recovery plan was agreed with the pension scheme trustees in October 2017. In accordance with this schedule of contributions, which was backdated to be effective from 1 January 2017, the group made additional contributions during 2017 to remove the funding deficit in the group scheme calculated as at 31 December 2016 of £710,000 and this was eliminated by 31 December 2017.
The next formal triennial funding valuation is due as at 31 December 2019. This is currently being worked upon and, subject to unforeseen circumstances, should be presented to the board of directors in the Autumn. A draft funding valuation was presented for discussion in the Summer and the group made a one-off contribution of £600,000 in late May 2020 to largely eliminate the indicative funding deficit as at 31 December 2019. In addition, the group has continued to make regular monthly contributions of £10,000 per month during 2020 and therefore the group anticipates that total contributions to the defined benefit pension scheme during 2020 will be at least £720,000.
Assumptions used to calculate the scheme surplus
A qualified independent actuary has updated the results of the December 2016 (30 June 2019 and 31 December 2019: December 2016) 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 2020 %
30 June 2019 %
31 December 2019 %
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 1.40 2.90 1.90 75
N/A 3.20 2.20 3.20 2.20 75
N/A 3.00 2.00 3.00 2.00 75
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 2020 is 100% S3PA CMI2018 (30 June 2019: 110% S2NA CMI2017; 31 December 2019: 110% S2NA CMI2018) with a 1.25% per annum long term improvement for both males and females (30 June 2019 and 31 December 2019: 1.25% males and females), heavy tables for males and medium tables for 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 2020
30 June 2019
31 December 2019
Male, current age 45 Female, current age 45
21.0 years 25.0 years
22.8 years 24.9 years
22.8 years 25.2 years
Male, current age 65
19.6 years
21.4 years
21.5 years
Female, current age 65
23.5 years
23.4 years
23.7 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 2020 £'000
30 June 2019 £'000
31 December 2019 £'000
Total fair value of plan assets
43,769
44,060
43,995
Present value of defined benefit funded obligation calculated in accordance with stated assumptions
(43,290)
(42,774)
(42,032)
Surplus in the scheme calculated in accordance with stated assumptions recognised in the balance sheet
479
1,286
1,963
The movement in the fair value of the scheme's assets during the period was as follows:
30 June 2020 £'000
30 June 2019 £'000
31 December 2019 £'000
Fair value of plan assets at the start of the period
43,995
41,036
41,036
Interest income on pension scheme assets
438
562
1,120
Actual return less interest income on pension scheme assets
(193)
3,343
3,925
Employer contributions
660
60
120
Benefits paid
(1,062)
(888)
(2,096)
Administration expenses charged in the income statement
(69)
(53)
(110)
Fair value of plan assets at the end of the period
43,769
44,060
43,995
The movement in the present value of the defined benefit obligation during the period was as follows:
30 June 2020
30 June 2019
31 December 2019
£'000
£'000
£'000
Present value of defined benefit funded at the beginning of the period
(42,032)
(39,680)
(39,680)
Interest on defined benefit obligation
(415)
(543)
(1,082)
Actuarial loss recognised in the CSOCTI calculated in accordance with stated assumptions
(1,905)
(3,439)
(3,366)
Benefits paid
1,062
888
2,096
Closing present value of defined benefit funded obligation calculated in accordance with stated assumptions
(43,290)
(42,774)
(42,032)
Amounts recognised in the income statement
The amounts (charged) / credited in the income statement were:
30 June 2020
30 June 2019
31 December 2019
£'000
£'000
£'000
Interest income on pension scheme assets
438
562
1,120
Interest expense on pension scheme liabilities
(415)
(543)
(1,082)
Net pension interest credit included within finance income
23
19
38
Scheme administration expenses
(69)
(53)
(110)
Net pension charge in the income statement
(46)
(34)
(72)
Actuarial gains and losses recognised in the consolidated statement of comprehensive total income (CSOCTI)
The amounts (charged) / credited in the CSOCTI were:
30 June 2020
30 June 2019
31 December 2019
£'000
£'000
£'000
Actual return less interest income on pension scheme assets
(193)
3,343
3,925
Experience gains and losses arising on plan obligation
-
-
211
Changes in demographic and financial assumptions underlying the present value of plan obligations
(1,905)
(3,439)
(3,577)
Actuarial (loss) / gain calculated in accordance with stated assumptions recognised in the CSOCTI
(2,098)
(96)
559
8 Called up share capital
30 June 2020
30 June 2019
31 December 2019
£'000
£'000
£'000
Issued and fully paid:
42,174,359 ordinary shares of one pence each (30 June 2019 and 31 December 2019: 42,174,359 ordinary shares of one pence each)
422
422
422
During the period the company did not buy back any shares for cancellation (June 2019 and December 2019: Nil shares).
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 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 2020
6 months ended 30 June 2019
12 months ended 31 December 2019
£'000
£'000
£'000
Profit for the period attributable to equity shareholders
6,070
5,449
15,019
Adjustments for:
Taxation charge
1,165
1,311
3,541
Finance costs
38
46
88
Finance income
(84)
(61)
(146)
Interest charge on right-of-use lease obligations
238
157
526
Inter-company foreign exchange (gains) and losses
(427)
16
270
Profit on the sale of property, plant and equipment and right-of-use assets
(332)
(278)
(520)
Depreciation
3,785
3,697
7,203
Depreciation of right-of-use assets
1,328
1,098
2,538
EBITDA*
11,781
11,435
28,519
Excess of pension contributions compared with service and administration expenses
(591)
(7)
(10)
Workings capital movements:
Stocks
(1,355)
(2,324)
(3,834)
Trade and other receivables
2,942
(120)
(1,818)
Trade and other payables
1,671
(1,454)
60
Cash generated from operations
14,448
7,530
22,917
* Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-recurring items.
10 Analysis of net funds and movement in financing liabilities
30 June 2020
30 June 2019
31 December 2019
£'000
£'000
£'000
Cash and cash equivalents per consolidated cash flow statement
32,096
23,770
27,880
Bank loans:
At the beginning of the period
(3,983)
(4,476)
(4,476)
Loans repaid
500
500
500
Other non-cash changes
(4)
(4)
(7)
At the of the period
(3,487)
(3,980)
(3,983)
Finance lease liabilities:
At the beginning of the period
-
(5)
(5)
Leases repaid
-
5
5
At the end of the period
-
-
-
Right-of-use lease obligations:
At the beginning of the period
(11,761)
-
-
Transitional adjustment for obligations at start of period
-
(11,363)
(11,699)
Capital repayments for right-of-use lease obligations
1,245
1,025
2,291
New right-of-use leases entered into during the period
(1,171)
(1,134)
(2,593)
Non-cash movements re termination of right-of-use lease obligations
160
-
-
Foreign exchange
(312)
11
240
At the of the period
(11,839)
(11,461)
(11,761)
Gross debt
(15,326)
(15,441)
(15,744)
Net funds
16,770
8,329
12,136
11 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.
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