REG - Andrews Sykes Group - Half Yearly Report <Origin Href="QuoteRef">ANSY.L</Origin> - Part 2

Andrews SykesAnnouncement

29/10/2014 14:40

- Part 2: For the preceding part double click  ID:nRSZ6622Sa 

                                                                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  8.90p                        3,761           
 as at 28 June 2013 on 24 July 2013                                                                                               
                                                                                                                                  
 
 
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                                              8.90p                             3,761           
 as at 28 June 2013 on 24 July 2013                                                                                                                                                
 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           
 
 
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 June2014                   30 June2013                   31 December2013               
 Rate of increase in pensionable salariesRate of increase in pensions in paymentDiscount rate applied to scheme liabilitiesInflation assumption - RPIInflation assumption - CPI for the first 6 yearsInflation assumption - CPI after the first 6 years  N/A3.30%4.20%3.40%2.40%2.40%  N/A3.20%4.60%3.30%2.30%2.30%  N/A3.40%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 June2014           30 June2013           31 December2013       
 Male, current age 45Female, current age 45  22.7 years24.0 years  22.7 years24.0 years  22.7 years24.0 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 June2013£'000    31 December2013£'000  
 Total fair value of plan assetsPresent 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 June2014    30 June2013    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 inaccordance with stated assumptions            (586)          394            (2,432)           
 Benefits paid                                                                                               727            634            1,672             
                                                                                                                                                             
 Closing present value of defined benefit funded obligation calculatedin 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 thepresent value of plan obligations  (583)           400              (2,360)           
 Actuarial (loss)/gain calculated in accordance with stated assumptionsrecognised 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 monthsended30 June2014    6 monthsended30 June2013    12 monthsended31 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