REG - Assoc British Enging - Annual Financial Report <Origin Href="QuoteRef">ASBE.L</Origin> - Part 2
06/09/2014 02:41
- Part 2: For the preceding part double click ID:nRSH6657La
comprehensive income.
Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised
on a straight-line basis over the average period until the benefits become vested.
The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets. Any asset
resulting from this calculation is limited to cumulative unrecognised past service cost, plus the present value of
available refunds and reductions in future contributions to the plan.
The Group has recognised the actuarial losses and gains immediately within the Statement of Comprehensive Income in
accordance with the provisions stated within IAS 19 'Employee benefits'.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short term deposits with a maturity of
three months or less when originally entered into which are subject to an insignificant risk of changes in value.
FINANCIAL INSTRUMENTS
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements
entered into.
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt
instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such
in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the income
statement. Finance costs are calculated so as to produce a constant rate of charge on the outstanding liability.
Where none of the contractual terms of share capital meet the definition of a financial liability then this is classed as
an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Further analysis of the Group's financial instruments, and the relevant exposure to risks and uncertainties, is stated in
note 19 below and the various classifications of financial assets and liabilities are identified and explained.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP ACCOUNTING POLICIES (continued)
FOR THE YEAR ENDED 31 MARCH 2014
Trade and other receivables
Trade and other receivables are originally recognised at fair value. Subsequent measurement is at amortised cost using the
effective interest rate method. A provision against trade receivables is made when there is objective evidence that the
Group will not be able to collect all amounts due to it in accordance with the original terms of those receivables. The
total of bad and doubtful debts at the year end was £71,000 (2013: £32,000). Trade receivables and cash and cash
equivalents are classified as loans and receivables.
Trade and other payables
Trade and other payables are originally recognised at fair value, net of transaction costs. Subsequent measurement is at
amortised cost using the effective interest rate method.
Investments in securities
Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under a contract
whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially
measured at fair value, with all transaction costs being written off to the income statement as incurred.
Investments are classified as held for trading and are measured at subsequent reporting dates at fair value. Gains and
losses arising from changes in fair value of held for trading financial assets are included in the net profit or loss for
the period. At the year end an adjustment of £37,500 (increase) was made to align the investments in securities with their
fair value.
SHARE BASED PAYMENTS AND SHARE OPTIONS
Former employees of the Group have received remuneration in the form of share based payment transactions, whereby employees
render services in exchange for rights over shares ('equity settled transactions'). The cost of these transactions is
measured by reference to their fair value at the date at which the options are granted. The fair value is determined by
using the Black-Scholes Option pricing model. There has been no charge recognised with respect to the share options as all
those in issue fall outside the scope of IFRS 2, having been granted before November 2002.
IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT
At each balance sheet date the Group reviews the carrying amounts of its property, plant and equipment to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does
not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the
cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash
flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than
its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An
impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in
which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior
years.
SEGMENTAL REPORTING
The standard requires financial information to be disclosed in the financial statements in the same format in which it is
disclosed to the chief operating decision-maker. The chief decision-maker has been identified as the Board, at which level
strategic decisions are made.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP ACCOUNTING POLICIES (continued)
FOR THE YEAR ENDED 31 MARCH 2014
EQUITY AND RESERVES
Share capital represents the nominal value of shares that have been issued except for the preference shares classified as
debt.
Deferred shares represents shares arising from the sub-division of ordinary shares of £2.
Share premium includes any premiums received on issue of share capital. Any transaction costs associated with the issuing
of shares are deducted from share premium, net of any related income tax benefits.
Retained earnings include all current and prior period retained profits and losses.
Other reserves relate to movements not classified in any of the reserves detailed above.
All transactions with owners of the parent are recorded separately within equity.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2014
Note 2014 2013
£'000 £'000(restated)
REVENUE 1 2,667 2,488
Operating costs 2 (2,975) (2,519)
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OPERATING LOSS (308) (31)
Finance expense 7 (45) (78)
Finance income 7 25 38
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LOSS BEFORE TAXATION (328) (71)
Taxation 8 12 (15)
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LOSS FOR THE YEAR (316) (86)
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EARNINGS PER SHARE ON LOSS FOR THE YEAR
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY
BASIC AND DILUTED 9 (4p) (2p)
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Loss for the year attributable to:
Owners of the Company (99) (49)
Non-controlling interests (217) (37)
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(316) (86)
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GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2014
2014 2013
£'000 £'000
(restated)
Loss for the year (316) (86)
------------ ------------
Other comprehensive income (*)
Actuarial loss on retirement benefit obligation 17 (580) (40)
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Other comprehensive income for the year (580) (40)
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TOTAL COMPREHENSIVE LOSS FOR THE YEAR (896) (126)
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Total comprehensive loss attributable to:
Owners of the Company (679) (89)
Non-controlling interests (217) (37)
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(896) (126)
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All activities are classified as continuing.
The accounting policies on pages 12 to 20 and the notes on pages 25 to 37 form part of these accounts.
(*) items which will not subsequently be reclassified to the income statement
ASSOCIATED BRITISH ENGINEERING PLC Company Number: 00110663
GROUP BALANCE SHEET
31 MARCH 2014
2014 2013
Note £'000 £'000
ASSETS (restated)
Non-current assets
Property, plant and equipment 10 364 380
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Current assets
Inventories 12 1,052 1,029
Trade and other receivables 13 527 497
Held for trading investments 14 129 84
Cash and cash equivalents 2,992 3,532
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4,700 5,142
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Total assets 5,064 5,522
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EQUITY AND LIABILITIES
Called up share capital 15 51 51
Deferred shares 15 2,594 2,594
Share premium account 5,370 5,370
Other components of equity 11 11
Retained earnings (5,227) (4,548)
-------------- --------------
Equity attributable to the Company's Equity shareholders 2,799 3,478
Non-controlling interests 59 276
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Total equity 2,858 3,754
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LIABILITIES
Non-current liabilities
Retirement benefit obligation 17b 1,414 931
Obligation under finance leases 18 172 237
Deferred tax liabilities 20 2 15
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1,588 1,183
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Current liabilities
Trade and other payables 18 553 520
Obligations under finance leases 18 65 65
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618 585
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Total liabilities 2,206 1,768
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Total equity and liabilities 5,064 5,522
====== ======
2,206
1,768
-------------
-------------
Total equity and liabilities
5,064
5,522
======
======
The financial statements were approved and authorised for issue by the Board of Directors on
and were signed below on its behalf by:
C Weinberg
Director
7 July 2014
The accounting policies on pages 12 to 20 and the notes on pages 25 to 37 form part of these accounts.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2014
Share capital Share premium Deferredshares Other reserve Retained earnings Attributable to owners of the parent Non-controlling interests Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2012 51 5,370 2,594 11 (4,459) 3,567 - 3,567
Loss for the year - - - - (49) (49) (37) (86)
Other comprehensive income (*)
Actuarial loss in defined benefit plan - - - - (40) (40) - (40)
-------------- -------------- ---------------- -------------- --------------- --------------- --------------- ---------------
Total comprehensive income for the year - - - - (89) (89) (37) (126)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Additional non-controllinginterest arising on theacquisition of Akoris TradingLimited - - - - - - 313 313
-------------- -------------- -------------- -------------- --------------- --------------- --------------- ---------------
Balance at 31 March 2013 51 5,370 2,594 11 (4,548) 3,478 276 3,754
(restated - refer to Note below) -------------- -------------- --------------- -------------- --------------- --------------- --------------- ---------------
Loss for the year - - - - (99) (99) (217) (316)
Other comprehensive income (*)
Actuarial loss in defined benefit plan - - - - (580) (580) - (580)
-------------- -------------- --------------- -------------- --------------- --------------- --------------- ---------------
Total comprehensive income for the year - - - - (679) (679) (217) (896)
-------------- -------------- --------------- -------------- --------------- --------------- --------------- ---------------
Balance at 31 March 2014 51 5,370 2,594 11 (5,227) 2,799 59 2,858
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Note:
Adjustments relating to the restatement of balances relate to transitional provisions arising as a result of amendments to
IAS 19: Employee Benefits which has resulted in the restatement of comparative amounts on a retrospective basis. The
adjustments are explained further within the Group Accounting Policies.
(*) - Items which will not be subsequently reclassified to the income statement
The accounting policies on pages 12 to 20 and the notes on pages 25 to 37 form part of these accounts.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2014
2014 2013
£'000 £'000
Cash flows from operating activities
Cash used in operations (445) (245)
Interest received 20 38
Interest paid (5) (32)
----------------- -----------------
Net cash used in operating activities (430) (239)
----------------- -----------------
Cash flows from investing activities
Proceeds from sale of equipment - 1
Purchase of equipment (37) (349)
Purchase of investments (13) -
Sale proceeds from trading investments 5 28
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Net cash used in investing activities (45) (320)
----------------- -----------------
Cash flows from financing activities
Cash raised from non-controlling interests - 313
(Settlement of)/proceeds from finance leases (65) 302
Redemption of loan notes - (555)
----------------- -----------------
Net cash generated from financing activities (65) 60
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Net decrease in cash and cash equivalents (540) (499)
Cash and cash equivalents at beginning of year 3,532 4,031
----------------- ----------------
Cash and cash equivalents at end of year 2,992 3,532
========= ========
CASH FLOW FROM OPERATING ACTIVITIES
2014 2013
£'000 £'000(restated)
Loss before taxation (328) (71)
Adjustments for:
Depreciation 53 37
Interest income (20) (38)
Finance expense 5 32
Pension scheme interest expense 40 46
Cash paid in excess of current service cost (137) (130)
Profit on disposal of equipment - (1)
Profit on disposal of Held for Trading investments (1) (33)
Changes in working capital:
(Increase) / Decrease in inventories (23) 60
(Increase) / Decrease in trade and other receivables (30) 13
Increase / (Decrease) in payables 35 (122)
Decrease in investments (39) (10)
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(445) (217)
Taxes paid - (28)
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Cash used in operations (445) (245)
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The accounting policies on pages 12 to 20 and the notes on pages 25 to 37 form part of these accounts.
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE ACCOUNTS - GROUP
FOR THE YEAR ENDED 31 MARCH 2014
1. SEGMENTAL REPORTING
The following table shows an analysis of the Group's external sales by geographical market:
2014 2013
£'000 £'000
United Kingdom 1,081 947
Europe 813 811
Far East and Australasia 98 345
Africa 314 206
North and South America 331 70
Middle East 30 82
Russia - 27
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2,667 2,488
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All of the above revenue arises from diesel and related engineering activities and originates in the United Kingdom.
In the years ended 31 March 2014 and 31 March 2013 all of the assets held by the Group were located in the United Kingdom
and all capital expenditure was incurred within the United Kingdom.
Operating segments
The following segment information has been prepared in accordance with IFRS 8, "Operating Segments", which defines
requirements for the disclosure of financial information of an entity's operating segments.
The Board consider the Group on an individual company basis. Reports by individual companies are used by the chief
decision-maker in the Group. Significant operating segments are Associated British Engineering Plc, British Polar Engines
Limited and Akoris Trading Limited.
The Group's operations are located in the United Kingdom. Any transactions between business units are on normal commercial
terms and conditions.
British Polar Engines Limited's activities consist of the manufacture and supply of diesel engines and spare parts for
diesel engines together with associated repair work.
Akoris Trading Limited's activities consist of commodity and natural resource trading, finance and investment. The company
only incurred set up expenditure in the period to 31 March 2014.
Associated British Engineering Plc is the Group holding company.
Year to 31 March 2014 Associated British Engineering Plc British Polar Engines Limited Akoris Trading Limited Consolidated
£'000 £'000 £'000 £'000
External sales - 2,667 - 2,667
------------ ------------ ----------- -----------
Segment result (PBIT) (182) 308 (434) (308)
------------- ------------ ------------ ------------
Net finance expenses (20)
Taxation 12
-----------
Profit after tax (316)
=====
Other information
Capital additions - 37 - 37
Balance sheet
Segment assets 288 4,443 333 5,064
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ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE ACCOUNTS - GROUP (continued)
FOR THE YEAR ENDED 31 MARCH 2014
1. SEGMENTAL REPORTING (continued)
Year to 31 March 2013 (restated) Associated British Engineering Plc British Polar Engines Limited Akoris Trading Limited Consolidated
£'000 £'000 £'000 £'000
External sales - 2,488 - 2,488
------------ ------------ ------------ ------------
Segment result (PBIT) 253 (211) (73) (31)
------------ ------------ ------------ ------------
Net finance expenses (40)
Taxation (15)
------------
Profit after tax (86)
======
Other information
Capital additions - 349 - 349
Balance sheet
Segment assets 244 4,650 628 5,522
====== ====== ====== ======
Included in the total Group revenue was £585,000 (2013: £286,735) of sales which arose from two customers who contributed
to 10% or more of the total Group revenue for the year ended 31 March 2014 (2013: one customer).
2. OPERATING COSTS 2014 2013
£'000 £'000
Changes in inventories (23) 60
Raw materials used 1,109 1,133
Staff costs 1,156 1,031
Depreciation and amortisation 52 37
Other expenses 681 258
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2,975 2,519
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3. OPERATING PROFIT 2014 2013
£'000 £'000
Operating profit is stated after charging/(crediting)
Depreciation on owned assets 20 18
Depreciation on assets held under finance leases 33 19
Fees payable to the Company's auditor for the audit of the Company's annual accounts:
PLC audit costs 22 22
The audit of the Company's subsidiaries pursuant to legislation 18 17
Operating lease rental on plant and machinery 35 25
Profit on disposal of property, plant & equipment - (1)
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ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE ACCOUNTS - GROUP (continued)
FOR THE YEAR ENDED 31 MARCH 2014
4. STAFF COSTS AND EMPLOYEES 2014 2013
£'000 £'000
Wages and salaries 1000 851
Social security costs 107 86
Other pension costs 107 94
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1,214 1,031
====== ======
The average monthly number of persons employed by the Group during the year was:
2014 2013
Number Number
By activity
Production 11 11
Administration 19 19
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30 30
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5. DIRECTORS' REMUNERATION
Directors received emoluments of £45,000 (2013: £47,000). Further details can be found on page 52.
6. KEY MANAGEMENT COMPENSATION 2014 2013
£'000 £'000
Remuneration of Group directors 45 47
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======
The Group made no pension contributions in respect of Group directors during the year ended 31 March 2014 or 31 March
2013.
7. NET FINANCE EXPENSE 2014 2013
£'000 £'000 (restated)
Interest on obligations under finance leases 5 3
Loan stock interest - 29
---------- ----------
Interest expenses for borrowings at amortised cost 5 32
Pension interest cost less expected return on scheme assets 40 46
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45 78
Interest receivable on cash and cash equivalents (25) (38)
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20 40
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ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE ACCOUNTS - GROUP (continued)
FOR THE YEAR ENDED 31 MARCH 2014
8. TAXATION 2014 2013
£'000 £'000
The tax charge is set out below:
Current tax:
United Kingdom corporation tax at 23% (2013: 24%) - -
Deferred tax:
In respect of current year 12 15
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Total current tax and tax on profit on ordinary activities 12 15
==== =====
The tax assessed for the period is different from the standard rate of corporation tax in the UK of 23% (2013: 24%). The
differences are explained as follows:
2014 2013
£'000 £'000
(restated)
Loss on ordinary activities before tax (328) (71)
---------------- ----------------
Loss on ordinary activities multiplied by standard rate of
Corporation tax in the UK of 23% (2013: 24%) (75) (17)
Effects of:
Expenses not deductible for tax purposes 7 63
Income not taxable (33)
Tax losses and advance corporation tax relief (ACT) (3) (35)
Other differences - 4
Depreciation for the period in excess of capital allowances 7 (15)
Unrelieved tax losses 97 -
---------------- ----------------
Current tax for period - -
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The Group has trading losses of approximately £1.5 million (2013: £1.4 million), surplus advance corporation tax relief of
approximately £865,000 (2013: £865,000) and capital losses of £8.5 million (2013: £9.2 million). These are available to
set against future taxable profits, taxation liabilities and capital gains respectively. The trading losses are available
to be used against future profits arising from the same trade within Associated British Engineering plc. These amounts are
subject to agreement with Her Majesty's Revenue and Customs.
9. LOSS PER SHARE
The calculation of loss per ordinary share is based on the
-loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year.
2014 2013
Weighted Weighted Per shares
Average Per shares Loss Average amount
Loss number of amount £'000 Number of Pence
£'000 Shares pence (re stated) Shares (re stated)
Basic and diluted earnings per share (99) 2,048,990 (4) (49) 2,048,990 (2)
========= ========= ========= ========= ========= =========
.
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE ACCOUNTS - GROUP (continued)
FOR THE YEAR ENDED 31 MARCH 2014
10. PROPERTY, PLANT AND EQUIPMENT Freehold
land and Plant and
buildings machinery Total
£'000 £'000 £'000
COST
At 1 April 2013 689 1,552 2,241
Additions - 37 37
Disposals - (180) (180)
---------------- ------------------- -------------------
At 31 March 2014 689 1,409 2,098
---------------- ------------------- -------------------
ACCUMULATED DEPRECIATION
At 1 April 2013 689 1,172 1,861
Charge for year - 53 53
Eliminated on disposals - (180) (180)
---------------- ------------------- -------------------
At 31 March 2014 689 1,045 1,734
---------------- ------------------- -------------------
CARRYING AMOUNTS
At 31 March 2014 - 364 364
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At 31 March 2013 - 380 380
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11. CAPITAL COMMITMENTS
At 31 March 2014 the Group had capital commitments of £Nil (2013: £Nil).
12. INVENTORIES 2014 2013
£'000 £'000
Raw materials 107 146
Work in progress 117 93
Finished goods 828 790
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1,052 1,029
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The closing inventory balance of £3,371,000 (2013: £3,174,000) is stated net of provisions of £2,219,000 (2013:
£2,145,000). There was an increase in provision of £74,000 in relation to write downs to net realisable value.
13. TRADE AND OTHER RECEIVABLES 2014 2013
£'000 £'000
Trade receivables 390 332
Prepayments and accrued income 137 165
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527 497
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The Group has no significant concentration of credit risk, with exposure spread over a large number of customers. At the
year end a provision against the trade receivables balance amounts to £79,000 (2013: £32,000). Movement during the year
related to an increase in the provision. There were no reversals.
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE ACCOUNTS - GROUP (continued)
FOR THE YEAR ENDED 31 MARCH 2014
14. HELD FOR TRADING INVESTMENTS 2014 2013
£'000 £'000
Listed Securities (held for trading non-derivative financial assets) 129 84
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Financial assets at
fair value through profit or loss
£
Opening balance 84
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