REG - Caffyns PLC - Final Results <Origin Href="QuoteRef">CFYN.L</Origin> - Part 2
16/07/2015 09:08
- Part 2: For the preceding part double click ID:nRSC0167Pa
Within operating expenses:
Gain on change of service cost of defined benefit pension 8,861 -
Service cost on pension scheme (21) (20)
Losses incurred on closed businesses (66) -
Redundancy costs (39) -
8,735 (20)
Net finance income on pension scheme (481) (580)
Interest on overdue taxation relating to prior years (82) -
(563) (580)
Total non-underlying items before taxation 8,966 (600)
Income tax expense - tax charge on non-underlying items (1,865) (77)
Total after tax 7,101 (677)
The following amounts have been presented as non-underlying items in these
financial statements:
In respect of closed businesses in prior years, there is an impairment
provision of £20,000 (2014: £nil) and costs incurred of £66,000 (2014: £nil).
There were branch specific redundancy costs of £39,000 (2014: £nil).
The Group's investment property at Uckfield was sold for £950,000 in March
2015 and a profit on disposal of £431,000 recognised.
A freehold property in Lewes was sold in September 2014 for £858,000 giving
rise to a net gain of £390,000 from which has been deducted other losses on
disposal of plant and equipment of £7,000.
The net financing return and service cost on pension obligations in respect of
the defined benefit scheme closed to future accrual is presented as a
non-underlying item due to the volatility of this amount. Agreement has been
reached with the trustees of the Group's defined benefit pension scheme that
the inflation measure used in payment increases for pensions in excess of the
Guaranteed Minimum Pension would change from RPI to CPI for members (or
dependants of members) who were in service on or after 1 April 1991. Having
considered the requirements of IAS 19 "Employee benefits", this change has
been recorded as a plan amendment through the Income Statement. The change
from RPI to CPI resulted in a gain in the Income Statement of £8,861,000.
The interest on overdue taxation relates to the corporation tax due on a VAT
repayment made to the Group in the year ended 31 March 2005. While the tax due
has been the subject of dispute with HM Revenue and Customs, it has been
provided for in the accounts but not paid. The tax due was paid in April
2015.
6. FINANCE EXPENSE
2015 2014
£'000 £'000
Interest payable on bank borrowings 489 299
Vehicle stocking plan interest 509 433
Financing costs amortised 125 48
Interest on overdue taxation (see note 5) 82 -
Preference dividends (see note 9) 102 102
Finance expense 1,307 882
Interest payable on bank borrowings is after capitalising interest in additions to freehold properties of £8,000 at a rate of 3.8% (2014: £90,000, rate: 3.5%).
7. TAXATION
2015£'000 2014£'000
Current tax
UK corporation tax (249) -
Deferred tax
Origination and reversal of temporary differences (1,969) (351)
Adjustments recognised in the period due to change in rate of corporation tax - 333
Adjustments recognised in the period for deferred tax of prior periods 35 (137)
(1,934) (155)
Total tax charged in the Income Statement (2,183) (155)
The tax charge arises as follows:
On normal trading (318) (78)
Non-underlying (see note 5) (1,865) (77)
(2,183) (155)
2015 2014
£'000 £'000
The charge for the year can be reconciled to the profit per the Income Statement as follows:
Profit before tax 11,438 1,566
Tax at the UK corporation tax rate of 21% (2014: 23%) (2,402) (360)
Tax effect of expenses that are not deductible in determining taxable profit (23) (9)
Change in rate of corporation tax from 23% to 20% (2013: 24% to 23%) - 333
Accounting depreciation/impairment for which no tax relief is due (109) (88)
Difference between accounts profits and taxable profits on capital asset disposals 126 18
Movement in rolled over and held over gains 190 88
Adjustments to tax charge in respect of prior years 35 (137)
Tax charge for the year (2,183) (155)
8. EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the year. Treasury shares are treated as cancelled
for the purposes of this calculation.
The calculation of diluted earnings per share is based on the basic earnings
per share, adjusted to allow for the issue of shares and the post-tax effect
of dividends and/or interest, on the assumed conversion of all dilutive
options and other dilutive potential ordinary shares.
Reconciliations of earnings and weighted average number of shares used in the
calculations are set out below:
Adjusted Basic
2015£'000 2014£'000 2015£'000 2014£'000
Profit before tax 11,438 1,566 11,438 1,566
Adjustments:
Non-underlying items (note 5) (8,966) 600 - -
Adjusted profit before tax 2,472 2,166 11,438 1,566
Taxation (318) (78) (2,183) (155)
Earnings 2,154 2,088 9,255 1,411
Earnings per share 78.1p 75.5p 335.5p 51.0p
Diluted earnings per share 77.0p 74.4p 330.7p 50.3p
The number of fully paid ordinary shares in circulation at the year-end was
2,758,733 (2014: 2,757,213). The weighted average shares in issue for the
purposes of the earnings per share calculation were 2,757,527 (2014:
2,766,903). The shares granted under the Company's SAYE scheme are dilutive.
The weighted average number of dilutive shares under option at fair value was
41,169 (2014: 37,808) giving a total diluted weighted average number of shares
of 2,798,696 (2014: 2,804,711).
9. DIVIDENDS
2015 2014
Paid £'000 £'000
Preference
6.5% Cumulative First Preference 25 25
10% Cumulative Preference 65 65
6.0% Cumulative Second Preference 12 12
Included in finance expense (see note 6) 102 102
Ordinary
Interim dividend paid in respect of the current year of 6.75p (2014: 6.0p) 186 166
Final dividend paid in respect of the March 2014 year end of 12.0p (2013: 7.0p) 331 194
517 360
Proposed
In addition, the directors are proposing a final dividend in respect of the year ended 31 March 2015 of 13.50p per share which will absorb £372,000 of shareholders' funds (2014: 12.0p per share absorbing £331,000). The shares will go ex-dividend on 25 June 2015. The proposed final dividend is subject to approval by shareholders at the forthcoming Annual General Meeting and has not been included as a liability in these financial statements.
10. NOTES TO THE CASH FLOW STATEMENT
2015£'000 2014£'000
Profit before taxation 11,438 1,566
Adjustment for net finance expense 1,788 1,462
13,226 3,028
Adjustments for:
Depreciation of property, plant and equipment and investment properties 1,080 893
Impairment of property, plant and equipment 20 -
Change in retirement benefit obligations (9,222) (326)
Gain on disposal of property, plant and equipment (814) (5)
Share-based payments 51 38
Operating cash flows before movements in working capital 4,341 3,628
Increase in inventories (5,043) (1,203)
(Increase)/decrease in receivables (1,051) 11
Increase in payables 6,030 3,838
Cash generated by operations 4,277 6,274
Income taxes (11) -
Interest paid (1,225) (902)
Net cash derived from operating activities 3,041 5,372
11. POST BALANCE SHEET EVENTS
A final dividend of 13.50p per share (2014: 12.0p) has been recommended by the
Directors.
This information is provided by RNS
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