REG - Avon Rubber PLC - Half Yearly Report <Origin Href="QuoteRef">AVON.L</Origin> - Part 2
15/07/2015 15:09
- Part 2: For the preceding part double click ID:nRSc6149La
4,673 2,737 (1,714) 5,696
Taxation (1,590) (1,590)
Profit for the period 4,673 2,737 (3,304) 4,106
Year to 30 September 2014
Protection & Defence
Dairy Unallocated Group
£'000 £'000 £'000 £'000
Revenue 92,818 31,961 124,779
Segment result before depreciation, amortisation, exceptional items and defined benefit pension scheme costs 18,542 6,600 (2,239) 22,903
Depreciation of property, plant and equipment (3,289) (771) (67) (4,127)
Amortisation of intangibles (1,670) (94) (9) (1,773)
Segment result before amortisation of acquired intangibles, exceptional items and defined benefit pension scheme costs 13,583 5,735 (2,315) 17,003
Amortisation of acquired intangibles (261) (261)
Exceptional items (2,017) (2,017)
Defined benefit pension scheme costs (400) (400)
Segment result 11,305 5,735 (2,715) 14,325
Finance income 1 1
Finance costs (275) (275)
Other finance expense (187) (187)
Profit before taxation 11,305 5,735 (3,176) 13,864
Taxation (3,053) (3,053)
Profit for the year 11,305 5,735 (6,229) 10,811
Revenue by origin
Half year to Half year to Year to
31 Mar 15 31 Mar 14 30 Sep 14
£'000 £'000 £'000
UK 11,819 14,725 23,508
US 51,002 46,766 101,271
62,821 61,491 124,779
Segment assets in the UK and US were £17.3m and £61.6m respectively (30 September 2014: £14.0m and £57.8m, 31 March 2014: £12.9m and £55.3m).
5. Amortisation of acquired intangibles, exceptional items and defined benefit pension scheme costs
Half year to Half year to Year to
31 Mar 15 31 Mar 14 30 Sep 14
£'000 £'000 £'000
Amortisation of acquired intangible assets 130 130 261
Exceptional items £'000 £'000 £'000
Relocation of Lawrenceville facility - 2,000 2,017
- 2,000 2,017
The tax impact of the above is a £nil reduction in overseas tax payable (31
March 2014: £0.35m, 30 September 2014: £0.45m).
The statutory results have also been adjusted to exclude items in relation to
the defined benefit pension scheme as this is closed to future accrual and
therefore does not relate to current operations. The adjustments comprise:
o Administrative expenses of £0.2m
o Settlement gain of £0.7m following a trivial commutation exercise
o Other finance expense of £0.3m
6. Finance income and costs
Half year to Half year to Year to
31 Mar 15 31 Mar 14 30 Sep 14
£'000 £'000 £'000
Interest payable on bank loans and 51 103 275
overdrafts
Finance income (9) - (1)
42 103 274
Other finance expense
Half year to Half year to Year to
31 Mar 15 31 Mar 14 30 Sep 14
£'000 £'000 £'000
Net interest cost: UK defined 329 6 12
benefit pension scheme
Provisions: Unwinding of discount 124 91 175
453 97 187
7. Taxation
Half year to Half year to Year to
31 Mar 15 31 Mar 14 30 Sep 14
£'000 £'000 £'000
United Kingdom - - -
Overseas 1,683 1,590 3,053
1,683 1,590 3,053
Effect of exceptional items - 350 450
Adjusted tax charge 1,683 1,940 3,503
The statutory effective tax rate
for the period is 20% (31 March
2014: 28%, 30 September 2014:
22%). The adjusted effective tax
rate, where the tax charge and the
profit before taxation are
adjusted for exceptional items,
the amortisation of acquired
intangibles and defined benefit
pension scheme charges is 20% (31
March 2014: 24%, 30 September
2014: 21%).
8. Dividends
On 29 January 2015, the
shareholders approved a final
dividend of 3.74p per qualifying
ordinary share in respect of the
year ended 30 September 2014. This
was paid on 20 March 2015
absorbing £1,127,000 of
shareholders' funds. The Board of
Directors has declared an interim
dividend of 2.43p (2014: 1.87p)
per qualifying ordinary share in
respect of the year ended 30
September 2015. This will be paid
on 4 September 2015 to
shareholders on the register at
the close of business on 7 August
2015. In accordance with
accounting standards this dividend
has not been provided for and
there are no corporation tax
consequences. It will be
recognised in shareholders' funds
in the year to 30 September 2015
and is expected to absorb £732,000
(2014: £560,000) of shareholders'
funds.
9. Earnings per share
Basic earnings per share is based
on a profit attributable to
ordinary shareholders of
£6,730,000 (2014: £4,106,000) and
30,077,000 (2014: 29,800,000)
ordinary shares being the weighted
average number of shares in issue
during the period.
Adjusted earnings per share is
based on a profit attributable to
ordinary shareholders of
£6,696,000 (2014: £6,092,000)
after adding back amortisation of
acquired intangible assets,
exceptional items and defined
benefit pension scheme costs.
The Company has 824,000 (2.7%)
(2014: 953,000 (3.2%)) potentially
dilutive ordinary shares in
respect of the Performance Share
Plan.
10. Provisions for liabilities
and charges
Facility Property
relocation obligations Total
£'000 £'000 £'000
Balance at 30 September 2014 454 3,365 3,819
Payments in the period (471) (1,578) (2,049)
Unwinding of discount - 124 124
Exchange difference 17 19 36
Balance at 31 March 2015 - 1,930 1,930
11. Share capital
Half year to Half year to Year to
31 Mar 15 31 Mar 14 30 Sep 14
Number of shares (thousands) 31,023 31,023 31,023
Ordinary shares (£'000) 31,023 31,023 31,023
Share premium (£'000) 34,708 34,708 34,708
During the period 162,095 ordinary shares with a nominal value of £1 each were
purchased by the Avon Rubber p.l.c. Employer Share Ownership Trust at a cost
of £1,152,000 and 29,459 ordinary shares of £1 each were issued in relation to
the 2014 annual incentive plan.
12. Cash generated from operations
Half year to Half year to Year to
31 Mar 15 31 Mar 14 30 Sep 14
£'000 £'000 £'000
Profit for the period 6,730 4,106 10,811
Adjustments for:
Taxation 1,683 1,590 3,053
Depreciation 2,283 2,009 4,127
Amortisation of intangible assets 1,471 1,028 2,034
Defined benefit pension scheme (credit)/costs (493) 200 400
Net finance expense 42 103 274
Other finance expense 453 97 187
Loss on disposal of intangible assets and property, plant and equipment - - 358
Movements in working capital and provisions (1,077) 2,119 4,185
Other movements 42 50 88
11,134 11,302 25,517
13. Analysis of net cash
As at Exchange As at
30 Sep 14 Cash flow movements 31 Mar 15
£'000 £'000 £'000 £'000
Cash at bank and in hand 2,925 4,137 211 7,273
Cash and cash equivalents 2,925 4,137 211 7,273
Borrowing facilities As at As at As at
31 Mar 15 31 Mar 14 30 Sep 14
£'000 £'000 £'000
Total undrawn committed facilities 26,521 17,247 24,191
Bank loans and overdrafts utilised - 5,755 -
Utilised in respect of guarantees 370 330 337
Total Group facilities 26,891 23,332 24,528
The above facilities are 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 US dollar LIBOR plus 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 2015 and 2014.
14. Exchange rates
The following significant exchange rates applied during the period.
Average Closing rate Average rate Closing rate Average rate Closing rate
rate
H1 2015 H1 2015 H1 2014 H1 2014 FY 2014 FY 2014
US dollar 1.539 1.488 1.633 1.664 1.654 1.631
Euro 1.309 1.370 1.198 1.210 1.221 1.281
Fair value of financial instruments
The fair value of forward exchange contracts is determined by using valuation
techniques using period end spot rates, adjusted for the forward points to the
value date of the contract.
15. Principal risks and uncertainties
The principal risks and uncertainties impacting the Group are described on
pages 28-31 of our Annual Report 2014 and remain unchanged at 31 March 2015.
They include: product development, market threat, business interruption -
supply chain, quality risks and product recall, customer dependency, talent
management and non-compliance with legislation.
CORPORATE INFORMATION
REGISTERED OFFICE
Corporate Headquarters
Hampton Park West
Semington Road
Melksham
Wiltshire
SN12 6NB
Registered in England and Wales No. 32965
V.A.T. No. GB 137 575 643
BOARD OF DIRECTORS
David Evans (Chairman)
Pim Vervaat (Non-Executive Director)
Richard Wood (Non-Executive Director)
Peter Slabbert (Chief Executive)
Andrew Lewis (Group Finance Director)
COMPANY SECRETARY
Miles Ingrey-Counter
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP
REGISTRARS & TRANSFER OFFICE
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
BR3 4TU
Tel: 0871 664 0300
(calls cost 10p per minute plus network extras,
lines are open 8.30am-5.30pm Mon-Fri)
BROKERS
Arden Partners plc
SOLICITORS
TLT LLP
PRINCIPAL BANKERS
Barclays Bank PLC
Comerica Inc.
CORPORATE FINANCIAL ADVISER
Arden Partners plc
CORPORATE WEBSITE
www.avon-rubber.com
This information is provided by RNS
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