REG - Assoc British Enging - Annual Financial Report <Origin Href="QuoteRef">ASBE.L</Origin> - Part 2
31/07/2017 12:55
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report is:
· materially inconsistent with the information in the audited financial statements; or
· apparently materially incorrect based on, or materially inconsistent with, our knowledge of the Group acquired in
the course of performing our audit; or
· otherwise misleading.
In particular, we are required to consider whether we have identified any inconsistencies between our knowledge acquired
during the audit and the Directors' statement that they consider the annual report is fair, balanced and understandable and
whether the annual report appropriately discloses those matters that we communicated to the audit committee which we
consider should have been disclosed. We confirm that we have not identified any such inconsistencies or misleading
statements.
Respective responsibilities of Directors and auditor
As explained more fully in the Directors' Responsibilities Statement, the Directors are responsible for the preparation of
the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and
express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing
(UK and Ireland).
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required
to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this
report, or for the opinions we have formed.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB's website at
www.frc.org.uk/apb/scope/private.cfm.
David Cox
Senior Statutory Auditor
for and on behalf of haysmacintyre
Statutory Auditor, Chartered Accountants
London
28 July 2017
ASSOCIATED BRITISH ENGINEERING PLC
GROUP AND PARENT COMPANY ACCOUNTING POLICIES
FOR THE PERIOD ENDED 3 APRIL 2017
BASIS OF PREPARATION
The Company is a public limited company incorporated in the United Kingdom under the Companies Act 2006. The address of the
registered office is given on the final page 63 of this annual report.
These Group consolidated accounts and the company accounts have been prepared in accordance with International Financial
Reporting Standards (IFRS) and IFRIC interpretations endorsed by the European Union (EU) and with those parts of the
Companies Act 2006 applicable to companies reporting under IFRS.
The Company's ordinary shares are traded on the London Stock Exchange (LSE) under the ticker (ASBE).
These financial statements are presented in pound sterling because that is the currency of the primary economic environment
in which the Group operates.
NEWLY ISSUED ACCOUNTING STANDARDS
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been
applied in these financial statements were in issue but not yet effective:
· IFRS 9 in respect of Financial Instruments which will be effective for the accounting periods beginning on or after
1 January 2018.
· IFRS 15 in respect of Revenue from Contracts with Customers which will be effective for accounting periods beginning
on or after 1 January 2018
· IFRS 16 in respect of Leases which will be effective for accounting periods beginning on or after 1 January 2019.
· IAS 7 in respect of the Disclosure Initiative. - Effective from 1 January 2017.
· IAS 12 in respect of the recognition of deferred tax assets for unrealised losses. - Effective 1 January 2017
· IFRS 2 in respect of the Classification and measurement of share-based payment transactions. - Effective 1 January
2011.
· IAS 40 in respect of transfers of investment property. - Effective 1 January 2018.
· IFRIC 22 in respect of foreign currency transactions and advance considerations. - Effective 1 January 2018.
The directors anticipate that the adoption of the above Standards and Interpretations in future periods will have no
material impact on the financial statements of the Group, except as follows:
· IFRS 9 Simplifies financial instrument classifications and hedge accounting rules as well as amending the impairment
requirement for loans.
· IFRS 15 is effective for annual periods beginning on or after 1 January 2018 and replaces all existing revenue
requirements in IFRS. The core principle is that revenue will be recognised at an amount reflecting the consideration to
which the Company expects to be entitled in exchange for transferring goods and services to a customer. It may have an
impact on revenue recognition and related disclosures.
· IFRS 16 is effective for annual periods beginning on or after 1 January 2019 and it removes the current distinction
between an operating and finance lease, introducing consistent requirements for all leases similar to the current finance
lease accounting. The lease value for leased premises as well as other smaller trade related operating leases will be
brought onto the Statement of Financial Position at the fair value of the future minimum lease payments.
Beyond the information above, it is not practicable to provide a reasonable estimate as to the effect of these standards
until a detailed review has been completed.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)
FOR THE PERIOD ENDED 3 APRIL 2017
GOING CONCERN
The Group's business activities, together with the factors likely to affect its future development, performance and
position are set out in the Chairman's statement on page xx. The financial position of the Group, its cash flows and
liquidity position are described in the financial statements.
The Group continues to be reliant upon its continuing ability to manage the timing of settlement both of its current
liabilities and future liabilities as they arise. There is also a need for successful on-going equity fundraises and / or
loans in the immediate to short term thereafter, while sales plans and projections come into effect, especially in relation
to revenues generated from new product and service lines. The Board has prepared forecasts to reflect the revenues expected
to be generated by the Group. The Group is fully focused on ensuring that sales plans are followed to ensure that the
business becomes profitable in the near future.
The Directors have concluded that the need to generate future funds from further fundraising, disposing of investments and
from trading activities to satisfy the settlement of its on-going and future liabilities represents a material uncertainty,
which may cast significant doubt upon the Group's and the Company's ability to continue as a going concern. Nevertheless
after making enquiries and considering this uncertainty and the measures that can be taken to mitigate the uncertainty, the
Directors have a reasonable expectation that the Group and the Company will have adequate resources to continue in
existence for the foreseeable future. For these reasons they continue to adopt the going concern basis in preparing the
annual report and accounts. The financial statements do not include any adjustments that would result if the Group and
Company was unable to continue as a going concern.
BASIS OF CONSOLIDATION
The consolidated accounts include the company and all its subsidiary undertakings (from the date of acquisition or to the
date of disposal where applicable). Intra group sales and profits are eliminated on consolidation. The accounts of all
subsidiary undertakings are made up to 3 April.
A subsidiary is an entity controlled, either directly or indirectly, by the company, where control is the power to govern
the financial and operating policies of the entity so as to obtain benefit from its activities. The acquisition method of
accounting is used to account for the acquisition of subsidiaries by the group. The cost of an acquisition is measured as
the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange.
Acquisition costs are expensed in the consolidated income statement in the period in which they are incurred.
BUSINESS COMBINATIONS
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business
combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of the assets
transferred to the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interests
issued by the Group in exchange for control of the acquiree.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value,
except that:
· deferred tax assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognised
and measured in accordance with IAS 12 and IAS 19 respectively;
· liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based payment
arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are measured in
accordance with IFRS 2 Share-based Payment at the acquisition date; and
· assets that are classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations are measured in accordance with the Standard.
Changes in the Group's interests in subsidiaries that do not result in a loss of control are accounted for as equity
transactions.
The carrying amount of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their
relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are
adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the
owners of the Company.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)
FOR THE PERIOD ENDED 3 APRIL 2017
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests
in the acquiree, and the fair value of the acquirer's previously held equity interest in the acquiree (if any) over the net
of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment,
the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the
consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer's
previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain
purchase gain.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the
entity's net assets in the event of liquidation may be initially measured either at fair value or at the non-controlling
interests' proportionate share of the recognised amounts of the acquiree's identifiable net assets. The choice of
measurement basis is made on a transaction-by-transaction basis.
REVENUE RECOGNITION
Revenue is measured at the fair value of the consideration receivable by the Group for goods supplied and services
provided, excluding value added tax and trade discounts. Revenue from the sale of spare parts is recognised when the goods
are dispatched or, if under a bill and hold arrangement, when they are available for despatch to a specific customer.
Revenue from the sale of engines is recognised in accordance with the performance of contractual terms and specifically
when the engines have been satisfactorily tested in accordance with contractual terms. Revenue from servicing and repair
work is recognised when the work is completed.
ACCOUNTING ESTIMATES AND JUDGEMENTS
Management are required, in accordance with IFRS, to exercise judgement and to make estimates and assumptions regarding the
application of accounting policies and the resulting effect on reported amounts of assets, liabilities, income and
expenses. These estimates and assumptions are based on historical experience and a review of current conditions prevailing
at the time but actual results may differ from these estimates. Any such revision is recognised in the financial statements
in the period in which the change in circumstance is detected.
ACCOUNTING JUDGEMENTS
The key areas where management have exercised judgement in the period, and the thought processes undertaken, are as
follows:
Deferred tax
Judgement is applied by management in determining the extent to which the recovery of carried forward tax losses is
probable for the purpose of meeting the criteria for recognition as deferred tax assets. Note 19 sets out information on
carried forward tax losses for which a deferred tax asset has not been recognised.
Pension scheme
The directors are in regular contact with the Trustees of the pension scheme in connection with three keys areas where
judgement is exercised; the assumptions underpinning the actuarial valuation, continued negotiations regarding the pension
scheme and in relation to the payment plan. The directors then assess the relevant estimates and assumptions made to ensure
that statutory obligations are met.
In evaluating the assumptions underpinning the actuarial valuation the directors have sought the professional advice of a
firm of actuaries who prepare the valuation according to industry standards and norms. During the period under review an
actuarial gain of £495,000 (2016: £99,000 loss) was recognised in the Group accounts.
The assumptions underpinning the actuarial valuation are disclosed further in note 16 to the Group financial statements.
Available for sale financial assets
British Polar Engines holding in SalvaRx was 2.3% (2016: 2.36%), as disclosed in note 13. The directors have judged that
this holding does not give the group 'significant influence' over SalvaRx Group PLC, and so this investment has not been
accounted for as an associate in these financial statements.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)
FOR THE PERIOD ENDED 3 APRIL 2017
ACCOUNTING ESTIMATES
The key accounting estimates having an impact on carrying amounts of assets and liabilities in the reporting period are as
follows:
Inventories
Inventories are stated at the lower of cost (including an appropriate proportion of attributable supplier rebates and
discounts) and net realisable value.
Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling
expenses. Provision is made for obsolete or slow moving inventories where appropriate.
Inventories held by the Group consist of raw material (mainly components), work in progress (manufactured engines and
parts) and finished goods (both purchased and manufactured engines and parts). A specific provision is made, on a 100%
basis, for all stock lines that are obsolete or slow moving for periods in excess of four years. A general provision is
made of 5%, 12.5%, 25% and 50% over all stock lines that have not moved for one, two, three and four years respectively.
The inventory provision at the period end amounted to £2,496,000 (2016: £2,411,000). The gross value of inventories at the
period end is £3,828,000 (2016: £3,369,000).
The directors review their assumptions and accounting estimates, along with the accounting policies adopted in preparing
these financial statements, on a regular basis and recognise any change in the period in which circumstances vary.
Provisions for doubtful debts
At the balance sheet date, each subsidiary evaluates the collectability of trade receivables and records provisions for
doubtful or disputed debts based on experience including comparisons of the relative age of accounts and consideration of
the history. The actual level of debt collected may differ from the estimated levels of recovery and could impact future
operating results positively or negatively. As at 3 April 2017 the Group has provided £500,471 (2016: £396,479) against its
current trade receivables.
INVENTORIES AND IMPAIRMENT OF INVENTORIES
Inventories of raw materials, work in progress and finished goods are valued at the lower of cost and net realisable value.
Work in progress and finished goods include an appropriate allocation of overheads.
Cost is on a first in, first out basis. Net realisable value is the estimated selling price in the normal course of
business, less estimated costs of completion and provision is made for obsolete, slow moving and defective inventories.
LEASED ASSETS
Leases of property and plant and equipment, where the Group has substantially all the risks and rewards of ownership, are
classified as finance leases. Assets held under finance leases are capitalised at lease inception at the lower of the
asset's fair value and the present value of the minimum lease payments. Obligations related to finance leases, net of
finance charges in respect of future periods, are included as appropriate within borrowings. The interest element of the
finance cost is charged to the income statement over the life of the lease so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period. The property, plant or equipment is depreciated on the
same basis as owned plant and equipment or over the life of the lease, if shorter.
Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases.
Operating lease rentals (net of any related lease incentives) are charged against profit on a straight line basis over the
period of the lease.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)
FOR THE PERIOD ENDED 3 APRIL 2017
FOREIGN CURRENCIES
The functional and presentational currency of the parent company and its subsidiaries is UK Pounds Sterling, rounded to the
nearest thousands. Transactions in currencies other than the functional currency are translated at the rate ruling at the
date of the transaction. At each balance sheet date, monetary assets and liabilities denominated in foreign currencies are
translated at the rate of exchange ruling at the balance sheet date. Any gains or losses arising from the transactions are
taken to the income statement.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less depreciation and any impairment in value. Freehold land is not
depreciated. Depreciation is calculated to write down the cost of all property, plant and equipment less its residual value
by annual instalments over their expected useful lives on the following bases:
Freehold buildings 5 per cent straight line
Plant and machinery 7½- 33⅓ per cent straight line
These useful lives and residual values are reviewed in each financial period.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or
where shorter, over the term of the relevant lease. The gain or loss arising on the disposal or retirement of an asset is
determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised as income.
The carrying values of property, plant and machinery are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable. If any such indication exists, and where the carrying values exceed
the estimated recoverable amount, the assets or cash generating units are written down to their recoverable amounts.
TAXATION
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax payable is based on the taxable profit or loss for the period. Taxable profit differs from net profit as
reported in the income statement because it excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is
calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the consolidated financial statements. The deferred tax is not
accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business
combination, that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are
expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of
reversal of the temporary differences is controlled by the Group and it is probable that the temporary difference will not
reverse in the foreseeable future.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against
which the temporary differences can be utilised.
RETIREMENT BENEFIT COSTS
For defined benefit retirement schemes, the cost of providing benefits is determined using the Projected Unit Credit
Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised
in full in the period in which they occur. They are recognised outside profit or loss and presented in the Group statement
of 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.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)
FOR THE PERIOD ENDED 3 APRIL 2017
RETIREMENT BENEFIT COSTS (Continued)
Actuarial gains and losses, which represent differences between the expected and actuarial returns on the plan assets and
the effect of changes in actuarial assumptions, are recognised in the statement of other comprehensive income in the period
in which they occur.
Pension payments to the Group's defined contribution schemes are charged to the income statement as they arise.
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 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 and the various classifications of financial assets and liabilities are identified and explained.
Trade and other receivables
Trade and other receivables are originally recognised at fair value, net of transaction costs. 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, doubtful debts and overdue at the period-end was £500,471 (2016: £396,479). 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 available for sale and are measured at subsequent reporting dates at fair value. Gains and
losses arising from changes in fair value of available for sale financial assets are included in other comprehensive income
for the period. When the asset is disposed of or deemed to be impaired, the cumulative gain or loss is reclassified from
equity reserve to income statement.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP AND PARENT COMPANY ACCOUNTING POLICIES (continued)
FOR THE PERIOD ENDED 3 APRIL 2017
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.
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.
Available for sale reserve includes all gains and losses relating to Available for Sale financial assets.
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 PERIOD ENDED 3 APRIL 2017
Note 2017 2016
£'000 £'000
REVENUE 1 1,043 1,766
Operating costs 2 (1,949) (2,334)
OPERATING LOSS 3 (906) (568)
Finance expense 6 (75) (68)
Finance income 6 19 15
LOSS BEFORE TAXATION (962) (621)
Taxation 7 2 8
LOSS FOR THE PERIOD (960) (613)
LOSS PER SHARE ON LOSS FOR THE PERIOD
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY
BASIC AND DILUTED 8 (46.8p) (29.9p)
Loss for the period attributable to:
Owners of the Company (960) (613)
Non-controlling interests - -
(960) (613)
All activities are classified as continuing.
The accounting policies on pages 16 to 22 and the notes on pages 28 to 43 form part of these accounts.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 3 APRIL 2017
Note 2017 2016
£'000 £'000
Loss for the period (960) (613)
Other comprehensive income
Re-measurement of the net defined benefit liability (*) 16 495 (99)
Gain on available for sale financial asset (**) - 15
Other comprehensive income for the period 495 (84)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD (465) (697)
Total comprehensive loss attributable to:
Owners of the Company (465) (697)
Non-controlling interests - -
(465) (697)
(*) = Items which will not subsequently be reclassified to the Income Statement.
(**) = Items which may subsequently be reclassified to the Income Statement.
All activities are classified as continuing.
The accounting policies on pages 16 to 22 and the notes on pages 28 to 43 form part of these accounts.
ASSOCIATED BRITISH ENGINEERING PLC Company Number: 00110663
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 3 April 2017
Note 2017 2016
£'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 9 303 296
Available for sale financial assets 13 433 433
736 729
Current assets
Inventories 11 1,332 958
Trade and other receivables 12 514 793
Cash and cash equivalents 535 1,577
2,381 3,328
Total assets 3,117 4,057
EQUITY AND LIABILITIES
Called up share capital 14 51 51
Deferred shares 14 2,594 2,594
Share premium account 5,370 5,370
Other components of equity 11 11
Available for Sale reserve 104 104
Retained earnings (7,110) (6,645)
Equity attributable to the Parent Company's Equity shareholders 1,020 1,485
Non-controlling interests 15 - -
Total equity 1,020 1,485
LIABILITIES
Non-current liabilities
Retirement benefit obligations 16b 1,380 1,931
Obligation under finance leases 17 25 43
Deferred tax liabilities 19 - -
1,405 1,974
Current liabilities
Trade and other payables 17 633 533
Obligations under finance leases 17 59 65
692 598
Total liabilities 2,097 2,572
Total equity and liabilities 3,117 4,057
Total liabilities
2,097
2,572
Total equity and liabilities
3,117
4,057
The financial statements were approved and authorised for issue by the Board of Directors on 28 July 2017 and were signed
below on its behalf by:
C Weinberg
Director
The accounting policies on pages 16 to 22 and the notes on pages 28 to 43 form part of these accounts.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 3 APRIL 2017
Share capital Share premium Deferredshares Other reserve Available for Sale reserve Retained earnings Attributa-ble to owners of the parent Non-controll-ing interest Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2015 51 5,370 2,594 11 89 (5,927) 2,188 (6) 2,182
Loss for the year - - - - - (613) (613) - (613)
Other comprehensive income
Actuarial loss in defined benefit plan (*) - - - - - (99) (99) - (99)
Unrealised gain on Available For Sale financial assets (**) - - - - 15 - 15 - 15
Transactions with owners
Purchase of shares from non-controlling interest - - - - - (6) (6) 6 -
-------------- -------------- ---------------- -------------- -------------- --------------- --------------- --------------- ---------------
Total comprehensive income for the year - - - - 15 (718) (703) 6 (697)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Balance at 31 March 2016 51 5,370 2,594 11 104 (6,645) 1,485 - 1,485
-------------- -------------- --------------- -------------- -------------- --------------- --------------- --------------- ---------------
Loss for the period - - - - - (960) (960) - (960)
Other comprehensive income
Actuarial loss in defined benefit plan (*) - - - - - 495 495 - 495
Unrealised gain on Available For Sale financial assets (**) - - - - - - - - -
Transactions with owners
Purchase of shares from non-controlling interest - - - - - - - - -
-------------- -------------- --------------- -------------- -------------- --------------- --------------- --------------- ---------------
Total comprehensive income for the period - - - - - (465) (465) - (465)
-------------- -------------- --------------- -------------- -------------- --------------- --------------- --------------- ---------------
Balance at 3 April 2017 51 5,370 2,594 11 104 (7,110) 1,020 - 1,020
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(*) = Items which will not be subsequently be reclassified to the Income Statement.
(**) = Items which may subsequently be reclassified to the Income Statement.
The accounting policies on pages 16 to 22 and the notes on pages 28 to 43 form part of these accounts.
ASSOCIATED BRITISH ENGINEERING PLC
GROUP CASH FLOW STATEMENT
FOR THE PERIOD ENDED 3 APRIL 2017
2017 2016
£'000 £'000
Cash flows from operating activities
Cash used in operations (896) (890)
Interest received 19 15
Interest paid (75) (68)
Net cash used in operating activities (952) (943)
Cash flows from investing activities
Proceeds from sale of equipment - 6
Purchase of equipment (26) (28)
Net cash used in investing activities (26) (22)
Cash flows from financing activities
Repayment of finance leases (64) (64)
Net cash used in financing activities (64) (64)
Net decrease in cash and cash equivalents (1,042) (1,029)
Cash and cash equivalents at beginning of period 1,577 2,606
Cash and cash equivalents at end of period 535 1,577
CASH FLOW FROM OPERATING ACTIVITIES
2017 2016
£'000 £'000
Loss before taxation (962) (621)
Adjustments for:
Depreciation 58 53
Interest income (19) (15)
Finance expense 75 68
Foreign exchange difference - (7)
Pension scheme interest expense 67 61
Cash paid in excess of current service cost (123) (121)
Profit on disposal of equipment - (6)
Changes in working capital:
(Increase)/decrease in inventories (374) (19)
(Increase)/decrease in trade and other receivables 280 (190)
Increase/(decrease) in payables 102 (93)
(896) (890)
Cash used in operations (896) (890)
The accounting policies on pages 16 to 22 and the notes on pages 28 to 43 form part of these accounts.
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE ACCOUNTS - GROUP
FOR THE PERIOD ENDED 3 APRIL 2017
1. SEGMENTAL REPORTING
The following table shows an analysis of the Group's external sales by geographical market:
2017 2016
£'000 £'000
United Kingdom 425 853
Europe 186 406
Far East and Australasia 166 19
Africa 82 188
North and South America 168 272
Middle East 16 28
1,043 1,766
The following table shows an analysis of the Group's external sales from continuing operations:
2017 2016
£'000 £'000
Revenue from the sale of goods 757 1,046
Revenue from the rendering of services 286 720
1,043 1,766
All of the above revenue arises from trading and diesel and related engineering activities and originate in the United
Kingdom.
In the periods ended 3 April 2017 and 31 March 2016, save for dollar bank accounts and overseas debtors, 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, and British Polar
Engines 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 did not carry out trading activity in the period.
Associated British Engineering Plc is the Group's holding company.
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE ACCOUNTS - GROUP (continued)
FOR THE PERIOD ENDED 3 APRIL 2017
1. SEGMENTAL REPORTING (continued)
Period to 3 April 2017 Associated British Engineering Plc British Polar Engines Limited Akoris Trading Limited Consolidated
£'000 £'000 £'000 £'000
External sales - 1,043 - 1,043
Segment result (LBIT) (148) (740) (7) (895)
Net finance expenses (67)
Taxation 2
Loss after tax (960)
Other information
Capital additions - 66 - 66
Balance sheet
Segment assets 199 2,887 31 3,117
Year to 31 March 2016 Associated British Engineering Plc British Polar Engines Limited Akoris Trading Limited Consolidated
£'000 £'000 £'000 £'000
External sales - 1,766 - 1,766
Segment result (LBIT/ PBIT) (116) (442) (10) (568)
Net
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