REG - Avon Rubber PLC - Final Results <Origin Href="QuoteRef">AVON.L</Origin> - Part 2

Avon TechnologiesAnnouncement

19/11/2014 08:00

- Part 2: For the preceding part double click  ID:nRSS3817Xa 

February
2015. In accordance with accounting standards this dividend has not been
provided for and there are no corporation tax consequences. 
 
6.            Earnings per share 
 
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares in
issue during the year, excluding those held in the employee share ownership
trust. The company has dilutive potential ordinary shares in respect of the
Performance Share Plan. Adjusted earnings per share adds back to profit the
effect of the amortisation of acquired intangible assets, exceptional items
and defined benefit pension costs. 
 
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below. 
 
                                                                                                                                                                                                           2014  2013  
                                                                                                                                                                                                                       
 Weighted average number of ordinary shares inissue used in basic calculations (thousands)                                                                    29,871       29,451  
                                                                                                                                                                                                                       
 Potentially dilutive shares (weighted average) (thousands)                                                                                                                        979        1,231        
                                                                                                                                                                                                                       
 Fully diluted number of ordinary shares(weighted average) (thousands)                                                                                                             30,850     30,682       
                                                                                                                                                                                                                       
                                                                                                                             2014    2014   2014   2013       2013         2013    
                                                                                                                                                   Basic eps  Diluted eps          Basic eps  Diluted eps  
                                                                                                                             £'000   pence  pence  £'000      pence        pence   
                                                                                                                                                                                                                       
 Profit attributable to equity shareholders of the Company                                                                   10,811  36.2   35.0   8,837      30.0         28.8    
                                                                                                                                                                                                                       
 Adjustments                                                                                                                 2,240          7.5    7.3        1,131        3.8     3.7        
                                                                                                                                                                                                                       
 Profit excluding amortisation of acquired intangibles assets, exceptional items and defined benefit pension scheme costs    13,051  43.7   42.3   9,968      33.8         32.5    
                                                                                                                                                                                                                         
 
 
7.        Provisions for liabilities and charges 
 
                               Facility    Property              
                               Relocation  obligations  Total    
                               £'000       £'000        £'000    
 Balance at 1 October 2012     -           2,993        2,993    
 Unwinding of discount         -           220          220      
 Payments in the year          -           (600)        (600)    
 Balance at 30 September 2013  -           2,613        2,613    
 Charged in the year           1,637       1,632        3,269    
 Unwinding of discount         -           175          175      
 Payments in the year          (1,191)     (1,056)      (2,247)  
 Exchange difference           8           1            9        
 Balance at 30 September 2014  454         3,365        3,819    
                                                                 
 
 
8.        Share capital 
 
                                 2014    2013    
 Number of shares (thousands)    31,023  30,723  
                                                 
 Ordinary shares (£'000)         31,023  30,723  
 
 
During the year, 300,000 ordinary shares with a nominal value of £1 per share
were issued at par to the Avon Rubber p.l.c. Employee Share Ownership Trust
No. 1. 
 
9.        Cash generated from operations 
 
                                                                       2014    2013     
                                                                       £'000   £'000    
 Profit for the year                                10,811  8,837  
 Adjustments for:                                                  
 Taxation                                           3,053   3,566  
 Depreciation                                       4,127   3,896  
 Amortisation of intangible assets                  2,034   2,321  
 Defined benefit pension scheme cost                400     420    
 Finance income                                     (1)     (1)    
 Finance costs                                      275     348    
 Other finance expense                              187     253    
 Loss on disposal of intangibles                    149     62     
 Loss on disposal of property, plant and equipment  209     24     
 Movement in respect of employee share scheme       88      113    
 Decrease in inventories                                               370     2,259    
 Decrease/(increase) in receivables                                    1,479   (6,295)  
 Increase/(decrease) in payables and provisions     2,336   (503)  
                                                                       25,517  15,300   
 
 
10.      Analysis of net cash / (debt) 
 
This note sets out the calculation of net cash / (debt), a measure considered
important in explaining our financial position. 
 
                                    At 1 Oct             Exchange   At 30 Sept  
                                    2013      Cash flow  movements  2014        
                                    £'000     £'000      £'000      £'000       
 Cash at bank and in hand           184       2,714      27         2,925       
 Net cash and cash equivalents      184       2,714      27         2,925       
 Debt due in more than 1 year       (11,059)  10,805     254        -           
                                    (10,875)  13,519     281        2,925       
 
 
On 9 June 2014 the Group agreed new bank facilities with Barclays Bank and
Comerica Bank. The combined facility comprises a revolving credit facility of
$40m and expires on 30 November 2017. This facility is priced on the dollar
LIBOR plus a margin of 1.25% and includes financial covenants which are
measured on a quarterly basis. The Group was in compliance with its financial
covenants during 2014 and 2013. 
 
11.      Exchange rates 
 
 The following significant exchange rates applied during the year.      
                                                                                                                                
                                                                        Average rate  Closing rate  Average rate  Closing rate  
                                                                        2014          2014          2013          2013          
 US Dollar                                                              1.654         1.631         1.559         1.612         
 Euro                                                                   1.221         1.281         1.188         1.191         
                                                                                                                                
 
 
Fair value of financial instruments 
 
The fair value of forward exchange contracts is determined by using valuation
techniques using year end spot rates, adjusted for the forward points to the
value date of the contract. 
 
12.      Annual Report & Accounts 
 
Copies of the Directors' report and the audited financial statements for the
year ended 30 September 2014 will be posted to shareholders who have elected
to receive a copy and may also be obtained from the Company's registered
office at Hampton Park West, Semington Road, Melksham, Wiltshire, SN12 6NB,
England. Full audited financial statements will be available on the Company's
website at www.avon-rubber.com. 
 
This information is provided by RNS
The company news service from the London Stock Exchange