REG - Andrews Sykes Group - Half Yearly Report <Origin Href="QuoteRef">ANSY.L</Origin> - Part 1

Andrews SykesAnnouncement

29/10/2014 14:40

RNS Number : 6622S
Andrews Sykes Group PLC
26 September 2014
Andrews Sykes Group plc
Interim Financial Statements
For the six months ended 30 June 2014
Summary of results
for the six months ended 30 June 2014
(Unaudited)
6 months ended
30 June 2014
6 months ended
30 June 2013
000
000
Revenue from continuing operations
26,759
29,774
EBITDA* from continuing operations
6,495
8,383
Operating profit
4,349
6,427
Profit for the financial period
3,206
5,208
Basic earnings per share (pence)
7.59p
12.32p
Interim dividends declared per equity share (pence)
11.90p
8.90p
Prior year final dividend declared per equity share (pence)
11.90p
-
Net funds
15,291
20,674
* 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
Kevin Ford
+44 (0) 1902 328700
Altium (NOMAD)
Paul Lines / Adam Sivner
+44 (0) 845 505 4307
Arden Partners (Broker)
Steve Douglas
+44 (0) 20 7614 5900

Chairman's Statement
Overview
During the first half of 2014, the group faced a number of challenges which had a detrimental impact on our trading performance for the period. Overall, the group's revenue for the six months ended 30 June 2014 was 26.8 million, a decrease of 3 million compared with the same period last year. As a consequence operating profit fell by 2.1 million from 6.4 million in the first half of 2013 to 4.3 million for the six months ended 30 June 2014.
Despite the above disappointing news, the group continues to be profitable and cash generative. Cash generated from operations was 4.2 million (2013: 7.6 million) and although net funds were reduced by 3.8 million from 19.1 million as at 31 December 2013 to 15.3 million as at 30 June 2014 this was after paying the 2013 final dividend of 11.90 pence per share, or 5 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 1.3 million and a further 0.4 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 the 2013 Strategic Report continue to be expensed as incurred. A new depot in Paris has been opened in the second half of 2014 and 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 faced a number of challenges as well as opportunities during the first half of 2014. In the UK the wet weather during the period stimulated the demand for our pump hire business which returned a strong operating performance. Non-weather dependent contracts continue to be sought with some new contracts being won in the period. Demand for our air conditioning products started earlier than last year with a spell of warm weather in the early summer. Unfortunately all of these positive factors were more than offset by the decline in the heating business which was severely affected by the unseasonably mild winter conditions.
The main factor affecting the segment's result for this period was the poor performance of our trading in the Netherlands. As with the UK, the Netherlands had an unseasonably mild winter with a consequential impact on the heating business. The effect was made worse by a decline in the construction sector in the Netherlands, particularly the housing market, which is one of our principal trading sectors. The performance of our Belgian and Italian operations were also affected by the mild weather, albeit to a lesser extent.
Our newly 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 that was 0.1 million below the level achieved last year. The UK installation market is becoming very price competitive which is not sustainable in the long term. We continue to offer a first class service at a fair price which we believe to be the best long term strategy.
Khansaheb Sykes, our long established business based in the UAE, had a slow start to the year. A number of contracts were delayed but June saw some improvements in both Dubai and Abu Dhabi in our traditional dewatering, sewage and general pump hire activities. The climate rental division that was started in 2012 continues to make a positive contribution but had mixed fortunes in the period. Overall, the operating profit of Khansaheb Sykes was 0.4 million lower than the same period last year.
Profit for the financial period and Earnings per Share
Profit before tax was 4.1 million (2013: 6.7 million) reflecting both the above 2.1 million decrease in operating profit and an increase in net finance costs of 0.5 million compared with the same period in 2013. Net finance costs increased primarily due to an inter company foreign exchange loss of 0.3 million, compared with a gain of 0.2 million in 2013, due to a strengthening of Sterling compared with both the Euro and other currencies.
The tax charge reduced by 0.6 million from 1.5 million last half year to 0.9 million for the six months ended 30 June 2014. The group's effective tax rate increased slightly from 22.0% last half year to 22.7% this period mainly due to a reduction in profits earned in low tax regions overseas and unrelieved overseas losses. A reconciliation of the theoretical corporation tax charge based on the accounts profit multiplied by the UK annualised corporation tax rate of 21.5% and the actual tax charge is given in note 4 of these interim accounts.
Profit after tax was 3.2 million (2013: 5.2 million). There were no share buy backs in either period so this fall in profits had a direct impact on earnings per share which fell from 12.32 pence for the first half of 2013 to 7.59 pence for the period under review.
Dividends
The directors did not declare or pay any interim dividends during the six months ended 30 June 2014.
The final dividend of 11.90 pence per ordinary share for the year ended 31 December 2013 was approved by members at the AGM held on 17 June 2014. Accordingly on 19 June 2014 the company made a total dividend payment of 5,029,000 which was paid to shareholders on the register as at 30 May 2014.
The board continues to adopt the policy of returning value to shareholders whenever possible. Despite the downturn in trading, the group remains profitable, cash generative and financially strong. Accordingly the board has decided to declare an interim dividend for 2014 of 11.90 pence per share which in total amounts to 5,029,000. This will be paid on 2 December 2014 to shareholders on the register as at 7 November 2014. The shares will go ex-dividend on 6 November 2014.
Outlook
Trading in the third quarter to date has been disappointing. Although in both the UK and Northern Europe warmer weather arrived earlier than last year, it was not sustained and did not reach the temperature peaks of 2013. Whilst both June and July were warm, August was disappointingly cool and wet thereby affecting the performance of our air conditioning hire business and this is continuing to have an impact into September.
Activity in the Middle East was, as expected, quiet in July due to Ramadan but the anticipated upturn in the last five months of the year has so far failed to materialise.
The weather for the final quarter of 2014 is currently an unknown factor and may significantly affect the outcome for the year. The board remains cautiously optimistic that the group will return a satisfactory performance for the remainder of 2014.
JG Murray
Chairman

25 September 2014


Consolidated income statement
for the 6 months ended 30 June 2014 (unaudited)
6 months ended
30 June
2014
'000
6 months ended
30 June 2013
'000
 12 months
 ended
 31 December
 2013
 '000
Continuing operations
Revenue
Cost of sales
 26,759
 (12,116)
 29,774
 (13,324)
 61,072
 (25,318)
Gross profit
 14,643
 16,450
 35,754
Distribution costs
 (5,061)
 (5,256)
 (10,994)
Administrative expenses
 (5,233)
 (4,767)
 (10,077)
Operating profit
 4,349
 6,427
 14,683
EBITDA*
Depreciation and impairment losses
Profit on the sale of plant and equipment
 6,495
 (2,301)
 155
 8,383
 (2,201)
 245
 18,592
 (4,459)
 550
Operating profit
 4,349
 6,427
 14,683
Income from trade investments
Finance income**
Finance costs**
Inter company foreign exchange gains and losses
 -
 178
 (93)
 (286)
 -
 178
 (131)
 206
 194
 373
 (193)
 (93)
Profit before taxation
 4,148
 6,680
 14,964
Taxation
 (942)
 (1,472)
 (3,446)
Profit for the financial period
 3,206
 5,208
 11,518
There were no discontinued operations in either of the above periods
Earnings per share from continuing operations
Basic and diluted (pence)
7.59p
 12.32p
 27.25p
Interim dividends declared per equity share (pence)
11.90p
 8.90p
 17.80p
Prior year final dividend declared per equity share (pence)
11.90p
 -
-
* Earnings Before Interest, Taxation, Depreciation, profit on the sale of property, plant and equipment, Amortisation and non-
 recurring items.
** Restated to include pension scheme interest received and paid on a net basis in accordance with IAS19 (R).


Consolidated balance sheet
as at 30 June 2014 (unaudited)
30 June 2014
30 June 2013
31 December 2013
 '000
 '000
 '000
Non-current assets
Property, plant and equipment
 15,524
 15,923
 16,432
Lease prepayments
 52
 54
 53
Trade investments
 164
 164
 164
Deferred tax asset
 627
 383
 618
Retirement benefit pension surplus
 1,681
 2,906
 1,204
 18,048
 19,430
 18,471
Current assets
Stocks
 4,592
 4,280
 3,231
Trade and other receivables
 14,772
 14,283
 14,631
Overseas tax (denominated in Euros)
 547
 -
 280
Cash and cash equivalents
 22,559
 29,067
 27,417
 42,470
 47,630
 45,559
Current liabilities
Trade and other payables
 (10,355)
 (9,923)
 (10,271)
Ordinary dividend
 -
 (3,761)
 -
Current tax liabilities
 (1,308)
 (1,429)
 (1,599)
Overseas tax (denominated in Euros)
 -
 (75)
 -
Bank loans
 (980)
 (980)
 (980)
Obligations under finance leases
 (114)
 (169)
 (114)
Provisions
 (13)
 (13)
 (13)
 (12,770)
 (16,350)
 (12,977)
Net current assets
 29,700
 31,280
 32,582
Total assets less current liabilities
 47,748
 50,710
 51,053
Non-current liabilities
Bank loans
 (5,965)
 (6,945)
 (6,955)
Obligations under finance leases
 (209)
 (299)
 (255)
Provisions
 (2)
 (15)
 (8)
 (6,176)
 (7,259)
 (7,218)
Net assets
 41,572
 43,451
 43,835
Equity
Called-up share capital
 423
 423
 423
Share premium
 13
 13
 13
Retained earnings
 38,828
 39,763
 40,684
Translation reserve
 2,053
 2,997
 2,460
Other reserves
 245
 245
 245
Surplus attributable to equity holders of the parent
 41,562
 43,441
 43,825
Minority interest
 10
 10
 10
Total equity
 41,572
 43,451
 43,835


Consolidated cash flow statement
for the six months ended 30 June 2014 (unaudited)
6 months
 ended
 30 June
 2014
 '000
 6 months
 ended
 30 June
 2013
 '000
 12 months
 ended
 31 December
 2013
 '000
Cash flows from operating activities
Cash generated from operations
 4,205
 7,560
 17,689
Interest paid
 (86)
 (194)
 (243)
Net UK corporation tax paid
 (1,220)
 (1,101)
 (2,340)
Withholding tax paid
 -
 -
 (39)
Overseas tax paid
 (291)
 (284)
 (851)
Net cash flow from operating activities
 2,608
 5,981
 14,216
Investing activities
Dividends received from trade investments
 -
 -
 194
Sale of property, plant and equipment
 252
 431
 706
Purchase of property, plant and equipment
 (1,256)
 (2,096)
 (4,392)
Interest received
 126
 111
 281
Net cash outflow from investing activities
 (878)
 (1,554)
 (3,211)
Financing activities
Loan repayments
 (1,000)
 (8,000)
 (8,000)
New loans raised
 -
 8,000
 8,000
Finance lease capital repayments
 (46)
 (102)
 (97)
Equity dividends paid
 (5,029)
 -
 (7,523)
Net cash outflow from financing activities
 (6,075)
 (102)
 (7,620)
Net (decrease) / increase in cash and cash equivalents
 (4,345)
 4,325
 3,385
Cash and cash equivalents at the beginning of the period
 27,417
 24,108
 24,108
Effect of foreign exchange rate changes
 (513)
 634
 (76)
Cash and cash equivalents at end of the period
 22,559
 29,067
 27,417
Reconciliation of net cash flow to movement in net funds in the period
Net (decrease) / increase in cash and cash equivalents
 (4,345)
 4,325
 3,385
Net cash outflow from the decrease in debt
 1,046
 102
 97
Non-cash movement re new finance leases
 -
 (104)
 -
Non-cash movements in respect of costs of raising loan finance
 (10)
 75
 65
(Decrease) / increase in net funds during the period
 (3,309)
 4,398
 3,547
Opening net funds at the beginning of the period
 19,113
 15,642
 15,642
Effect of foreign exchange rate changes
 (513)
 634
 (76)
Closing net funds at the end of the period
 15,291
 20,674
 19,113


Consolidated statement of comprehensive total income (CSOCTI)
for the six months ended 30 June 2014 (unaudited)
6 months
ended
30 June
2014
6 months
ended
30 June
2013
12 months
ended
31 December
2013
000
000
000
Profit for the financial period
3,206
5,208
11,518

Other comprehensive (charges) / income:
Items that may be reclassified to profit and loss:
Currency translation differences on foreign currency net investments
(406)
674
137

Items that will never be reclassified to profit and loss:
Remeasurement of defined benefit liabilities and assets
(41)
638
(1,524)
Related deferred tax
8
(147)
388

Other comprehensive (charges) / income for the period net of tax
(439)
1,165
(999)

Total comprehensive income for the period
2,767
6,373
10,519


Notes to the consolidated interim financial statements
for the six months ended 30 June 2014
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 2013 does not constitute the group's statutory accounts for 2013 as defined in Section 434 of the Companies Act 2006. Statutory accounts for 2013 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 25 September 2014, 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
With the exception of the disclosure of pension scheme interest on a net basis in accordance with IAS 19 (revised), 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 2013.


3 Revenue
An analysis of the group's revenue is as follows:
6 months
ended
30 June
2014
'000
6 months
ended
30 June
2013
'000
12 months
ended
31 December
2013
'000
Continuing operations
Hire
21,501
24,379
50,175
Sales
3,232
3,451
7,035
Installations
2,026
1,944
3,862

Group consolidated revenue from the sale of goods and provision
of services
26,759
29,774
61,072
4 Taxation
6 months
ended
30 June
 2014
6 months
ended
30 June
2013
12 months
ended
31 December
2013
 '000
'000
'000
Current tax
UK corporation tax at 21.5% (30 June 2013 and 31 December 2013: 23.25%)
 929
1,048
 2,567
Adjustments in respect of prior periods
 -
-
(109)

 929
1,048
 2,458
Overseas tax
 14
344
 592
Adjustments to overseas tax in respect of prior periods
 -
-
(22)
Withholding tax
 -
-
 39
Total current tax charge
 943
1,392
 3,067

Deferred tax 
Deferred tax on the origination and reversal of temporary differences
 (1)
80
 329
Adjustments in respect of prior periods
 -
-
 50
Total deferred tax charge
 (1)
80
 379

Total tax charge for the financial period attributable to
continuing operations
 942
1,472
 3,446


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 21.5% (30 June 2013 and 31 December 2013:23.25%) as follows:
6 months
ended
30 June 
2014
6 months 
ended
30 June 
2013
12 months
ended
31 December
2013
'000
'000
 '000
Profit before taxation from continuing and total operations
 4,148
 6,680
 14,964

Tax at the UK effective annualised corporation tax rate of 21.5%
 (30 June 2013 and 31 December 2013: 23.25%)
 892
 1,553
 3,479
Effects of:
Expenses not deductible for tax purposes
 53
 61
 119
Movement in overseas trading losses
 106
 51
 146
Effect of different tax rates of subsidiaries operating abroad 
 (109)
 (193)
 (339)
Withholding tax
 -
 -
 39
Non-taxable income from other participating interests
 -
 -
 (45)
Effect of change in rate of corporation tax
 -
 -
 128
Adjustments to tax charge in respect of previous periods
 -
 -
 (81)
Total tax charge for the financial period
 942
 1,472
 3,446
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 21.5%; the reduction to 21% for the tax year ending 31 March 2015 having been substantially enacted on 2 July 2013. UK deferred tax has been provided at 20% 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 2014
Continuing
earnings
Number of
Shares

000

Basic earnings/weighted average number of shares
3,206
42,262,082
Basic earnings per ordinary share (pence)
 7.59p
6 months ended 30 June 2013
Continuing
earnings
Number of
shares

000

Basic earnings/weighted average number of shares
5,208
42,262,082
Basic earnings per ordinary share (pence)
12.32p
 12 months ended 31 December 2013
Continuing
earnings
Number of
shares

000

Basic earnings/weighted average number of shares
11,518
42,262,082
Basic earnings per ordinary share (pence)
27.25p
Diluted earnings per share
There were no dilutive instruments outstanding at 30 June 2014 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
The directors did not declare or pay any interim dividends during the 6 months ended 30 June 2014. The following final dividend for the year ended 31 December 2013 was approved by members at the AGM held on 17 June 2014 and was paid to members of the register on 30 May 2014 on 19 June 2014:
Paid in the 6 months ended 30 June 2014
Pence per share
Total dividend
paid

000

Final dividend for the year ended 31 December 2013 paid to members on the register on 30 May 2014 on 19 June 2014
11.90p
5,029
The above dividend was charged against reserves during the 6 months ended 30 June 2014.
On 25 September 2014 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 December 2014 to shareholders on the register on 7 November 2014 and will be charged against reserves in the second half of 2014.
The directors declared the following interim dividend during the 6 months ended 30 June 2013:
6 months ended 30 June 2013
Pence per share
Total dividend
declared

000

Interim dividend declared on 18 June 2013 and paid to shareholders on the register
as at 28 June 2013 on 24 July 2013 
8.90p
3,761
The above interim dividend was charged against reserves during the 6 months ended 30 June 2013 and included on the balance sheet as a current liability as at 30 June 2013. The amount was paid on 24 July 2013.
The directors declared and paid the following interim dividends during the 12 month period ended 31 December 2013:
12 months ended 31 December 2013
Pence per share
Total dividend
paid

000

Interim dividend declared on 18 June 2013 and paid to shareholders on the register
as at 28 June 2013 on 24 July 2013 
 8.90p
3,761
Interim dividend declared on 28 October 2013 and paid to shareholders on the register as at 8 November 2013 on 3 December 2013
8.90p
3,762
17.80p
7,523
The above interim dividends were charged against reserves during the 12 months ended 31 December 2013.
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 2014 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 1,681,000 (30 June 2013: 2,906,000; 31 December 2013: 1,204,000). 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 has been agreed with the pension scheme trustees in June 2014. Based on this schedule of contributions, which is effective from 1 January 2014, the best estimate of the employer contributions to be paid during the year commencing 1 January 2014 is 905,000. Thereafter, the group does not expect to make any further contributions to the pension scheme, other than a contribution towards expenses that has been capped at 120,000 per annum, until the next funding valuation as at 31 December 2016 is agreed with the pension scheme trustees.
Assumptions used to calculate the scheme surplus
A qualified independent actuary has updated the results of the December 2010 full actuarial valuation to calculate the surplus as disclosed below.
The major assumptions used in this valuation to determine the present value of the scheme's defined benefit obligation were as follows:
30 June
2014
30 June
2013
31 December
2013
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 for the first 6 years
Inflation assumption - CPI after the first 6 years
N/A
3.30%
4.20%
3.40%
2.40%
2.40%
N/A
3.20%
4.60%
3.30%
2.30%
2.30%
N/A
3.40%
4.40%
3.50%
2.50%
2.50%
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 for all subsequent periods.
Assumptions regarding future mortality experience are set based on advice in accordance with published statistics. The mortality table used at 30 June 2014 is 110% S1NA CMI2013 (30 June 2013: 110% S1NA CMI2012; 31 December 2013: 110% S1NA CMI2013).
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
2014
30 June
2013
31 December
2013
Male, current age 45
Female, current age 45
22.7 years
24.0 years
22.7 years
24.0 years
22.7 years
24.0 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 
2014
'000

30 June
2013
'000

31 December
2013
'000
Total fair value of plan assets
Present value of defined benefit funded obligation calculated in accordance with stated assumptions
36,786
(35,105)

34,946
(32,040)

35,707
(34,503)
Surplus in the scheme calculated in accordance with stated assumptions recognised in the balance sheet
1,681

2,906

1,204
The movement in the fair value of the scheme's assets during the period was as follows:
30 June
2014
 '000
30 June
2013
 '000
31 December
2013
'000
Fair value of plan assets at the start of the period
 35,707
 34,195
 34,195
Expected return on pension scheme assets
 775
 726
 1,455
Actual return less expected return on pension scheme assets
 545
 244
 908
Employer contributions - normal 
 540
 480
 960
Benefits paid 
 (727)
 (634)
 ( 1,672)
Administration expenses charged in the income statement 
 (54)
 (65)
 (139)
 
Fair value of plan assets at the end of the period
 36,786
 34,946
 35,707
The movement in the present value of the defined benefit obligation during the period was as follows:
30 June
2014
30 June
2013
31 December 2013
'000
'000
'000
Present value of defined benefit funded at the beginning of the period
 (34,503)
 (32,386)
 (32,386)
Interest on defined benefit obligation
 (743)
 (682)
 (1,357)
Actuarial (loss) / gain recognised in the CSOCTI calculated in
accordance with stated assumptions
 (586)
 394
 (2,432)
Benefits paid
 727
 634
 1,672

Closing present value of defined benefit funded obligation calculated
in accordance with stated assumptions
(35,105)
 (32,040)
 (34,503)


Amounts recognised in the income statement
The amounts credited / (charged) in the income statement were:
 30 June
 2014
 30 June
 2013
 31 December
 2013
 '000
 '000
 '000
Expected return on pension scheme assets 
 775
 726
 1,455
Interest on pension scheme liabilities 
 (743)
 (682)
 (1,357)
Net pension interest credit included within finance income 
 32
 44
 98
Scheme administration expenses
 (54)
 (65)
 (139)
Net pension charge in the income statement
 (22)
 (21)
 (41)
Actuarial gains and losses recognised in the consolidated statement of comprehensive total income (CSOCTI)
The amounts credited / (charged) in the CSOCTI were:
30 June
2014
30 June
 2013
31 December
2013
 000
 000
 000
Actual return less expected return on pension scheme assets
 545
 244
 908
Experience gains and losses arising on plan obligation
 (3)
(6)
 (72)
Changes in demographic and financial assumptions underlying the
present value of plan obligations
 (583)
 400
(2,360)
Actuarial (loss)/gain calculated in accordance with stated assumptions
recognised in the CSOCTI
 (41)
 638
 (1,524)
8 Called up share capital
30 June
2014
30 June
2013
31 December
2013
 '000
 '000
 '000
Issued and fully paid:
42,262,082 ordinary shares of one pence each (30 June 2013 and 31 December 2013: 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 2014 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
2014
6 months
ended
30 June
2013
12 months
ended
31 December 2013
'000
'000
'000
Profit for the period attributable to equity shareholders
 3,206
5,208
11,518
Adjustments for:
 Taxation charge
 942
1,472
3,446
 Finance costs*
93
131
 193
 Finance income*
(178)
(178)
(373)
 Inter-company foreign exchange gains and losses
286
(206)
93
 Income from trade investments
-
 -
(194)
 Profit on the sale of property, plant and equipment
(155)
(245)
(550)
 Depreciation
2,301
2,201
4,459
 Excess of normal pension contributions compared with service cost 
 and administration expenses
(486)
(415)
(821)

Cash generated from operations before movements in working capital
6,009
7,968
17,771

Movement in stocks
(1,764)
(1,419)
(1,059)
Movement in trade and other receivables
(122)
988
613
Movement in trade and other payables
88
 29
377
Movement in provisions
(6)
(6)
(13)

Cash generated from operations
4,205
7,560
17,689
* Restated to include pension scheme interest received and paid on a net basis in accordance with IAS 19 (R).
10 Analysis of net funds
30 June
2014
30 June
2013
31 December
2013
'000
 '000
 '000
Cash and cash equivalents per cash flow statement
 22,559
 29,067
 27,417

Bank loans
 (6,945)
 (7,925)
 (7,935)
Obligations under finance leases
 (323)
 (468)
 (369)
Gross debt
 (7,268)
 (8,393)
 (8,304)
Net funds
 15,291
 20,674
 19,113
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.

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