REG - Avingtrans PLC - Final Results <Origin Href="QuoteRef">AVG.L</Origin> - Part 2

AvingtransAnnouncement

27/09/2016 07:06

- Part 2: For the preceding part double click  ID:nRSa8753Ka 

charged to expenses            12     
 Net cash paid relating to the acquisition        3,512  
 
 
Net cash paid relating to the acquisition 
 
3,512 
 
Management did not identify any intangible assets on acquisition of this
business. 
 
Acquisition costs arising from this transaction of £12,000 have been included
in administration expenses included in discontinued operations. 
 
The gain arising on the bargain purchase is £172k which had been credited
within the result for discontinued operations within the consolidated income
statement. 
 
The Directors do not have access to the information to disclose the revenue
and profit/ loss since acquisition. 
 
The trade and assets from this acquisition were subsequently part of the
Aerospace disposal on 27 May 2016. 
 
Business combination - Sigma Swadlincote 
 
On 11 August 2014 the group acquired the trade and certain business assets and
liabilities relating to the manufacture of aerospace components of RMDG
Aerospace Ltd for £1,137,000. 
 
Notes to the Preliminary Statement (continued) 
 
31 May 2016 
 
6. Disposals - Aerospace Division 
 
On 27 May 2016 the Group disposed of its Aerospace division (comprising Sigma
Precision Components UK Limited, Sigma Precision Components Limited, C & H
Precision Finishers Limited, Sigma Components (Derby) Limited, Sigma
Components (Farnborough) Limited and Hartshill Ventures Limited, the net
assets and liabilities at the date of disposal were as follows: 
 
                                                                                     £'000     
 Goodwill                                                                            5,007     
 Other intangible assets                                                             2,286     
 Property, plant and equipment                                                       7,704     
 Inventories                                                                         12,636    
 Trade and other receivables                                                         13,115    
 Cash and cash equivalents                                                           583       
 Trade and other payables                                                            (13,764)  
 Obligations under finance lease                                                     -         
 Borrowings                                                                          -         
 Current tax liabilities                                                             (739)     
 Provisions                                                                          (265)     
 Deferred tax                                                                        (326)     
 Net assets disposed                                                                 26,237    
                                                                                               
 Consideration                                                                       65,000    
 Working capital adjustment                                                          (1,400)   
 Debt adjustment                                                                     (4,944)   
 Cash disposed of                                                                    (583)     
                                                                                     58,073    
 Disposals costs                                                                     (4,396)   
 Net cash received relating to acquisition                                           53,677    
                                                                                               
 Cash proceeds                                                                       53,677    
 Adjust for cash disposed                                                            583       
 Net assets disposed                                                                 (26,237)  
 Recycling of foreign exchange translation reserves and other non-cash adjustment    (477)     
 Profit on disposal                                                                  27,546    
 
 
27,546 
 
Included in the above profit on disposal is £477,000 of foreign exchange
translation reserves recycled on disposal of the Aerospace division. 
 
Included in Consideration is a retention of £1,450,000 held in escrow until 30
September 2017. 
 
Notes to the Preliminary Statement (continued) 
 
31 May 2016 
 
Disposals - Aerospace Division (continued) 
 
Discontinued Operations 
 
The results prior to the disposal on 27 May 2016 for the discontinued
operations included in the consolidated income statement were: 
 
                                                2016    2015    
                                                £'000   £'000   
 Revenue                                        38,401  35,262  
 Operating profit                               3,942   3,314   
 Interest                                       (64)    (120)   
 Profit before taxation                         3,878   3,194   
 Taxation                                       (708)   (640)   
 Profit on disposal of discontinued operations  27,546  -       
 Profit after tax from discontinued operations  30,716  2,554   
 
 
30,716 
 
2,554 
 
The Aerospace division contributed the following to the Group's cashflows: 
 
                       2016     2015     
                       £'000    £'000    
                                         
 Operating cashflows   9,141    2,019    
 Investing activities  (4,503)  (2,694)  
 Financing activities  (1,474)  (1,666)  
 
 
7. Net cash/(debt) and gearing 
 
 The gearing ratio at the year-end is as follows:  2015     2015      
                                                   £'000    £'000     
                                                                      
 Debt                                              (5,457)  (12,251)  
 Cash and cash equivalents                         56,503   6,337     
 Net cash/(debt)                                   51,046   (5,914)   
                                                                      
 Equity                                            64,753   34,185    
 Net cash/(debt) to equity ratio                   78.8%    (17.3)%   
 
 
78.8% 
 
(17.3)% 
 
8. Preliminary statement and basis of preparation 
 
This preliminary statement, which has been agreed with the auditors, was
approved by the Board on 26 September 2016. It is not the Group's statutory
accounts within the meaning of Section 434 of the Companies Act 2006. 
 
The statutory accounts for the two years ended 31 May 2016 and 2015 received
audit reports which were unqualified and did not contain statements under
s498(2) or (3) of the Companies Act 2006. The statutory accounts for the year
ended 31 May 2015 have been delivered to the Registrar of Companies but the 31
May 2016 accounts have not yet been filed. 
 
The Company's financial statements have been prepared and approved by the
directors in accordance with International Financial Reporting Standards
(IFRSs) as adopted by the European Union and those parts of the Companies Act
2006 that apply to companies reporting under IFRS. The principal accounting
policies adopted by the company, which remain unchanged, are set out in the
statutory financial statements for the year ended 31 May 2016. 
 
Notes to the Preliminary Statement (continued) 
 
31 May 2016 
 
9. Annual report and Accounts 
 
The Report and Accounts for the year ended 31 May 2016 will be available on
the Group's website www.avingtrans.plc.uk on or around 3 October 2016. 
Further copies will be available from the Avingtrans' registered office: 
 
Chatteris Business Park, Chatteris, Cambridgeshire PE16 6SA. 
 
10. Annual General Meeting 
 
The Annual General Meeting of the Group will be held at Shakespeare Martineau
LLP, No1 Colmore Square, Birmingham, B4 6AA on 8 November 2016 at 11:00am 
 
This information is provided by RNS
The company news service from the London Stock Exchange