REG - Caffyns PLC - Half Yearly Report <Origin Href="QuoteRef">CFYN.L</Origin> - Part 2
27/11/2015 07:10
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Gain on change of service cost of defined pension scheme - - 8,861
Service cost on pension scheme (21) - (21)
Losses incurred on closed businesses - - (66)
Redundancy costs - (39) (39)
(21) (39) 8,735
Interest on overdue taxation relating to prior years - (79) (82)
Net finance income and service cost on pension scheme (87) (251) (481)
Within net finance expense (87) (330) (563)
Total non-underlying items before taxation 164 21 8,966
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 was
reached with the trustees of the Group's defined benefit pension scheme in the
year ended 31 March 2015 that the inflation measure used in payment increases
for pensions in excess of GMP would change from RPI to CPI for members (or
dependants of members) who were in service on or after 1 April 1991. The
Directors recorded this change 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.
4. FINANCE EXPENSE
Half year to30 September2015£'000 Half year to30 September2014£'000 Year to31 March2015£'000
Interest payable on bank borrowings 162 236 489
Vehicle stocking plan interest 316 237 509
Financing costs amortised 54 58 125
Interest on overdue taxation (see note 3) - 79 82
Preference dividends 51 51 102
Total finance costs 583 661 1,307
There was no interest capitalised in additions to freehold properties (2014:
£8,000 at a rate of 3.8%)
5. TAXATION
Half year to30 September2015 Half year to30 September2014 Year to31 March2015
£'000 £'000 £'000
Current UK corporation tax
Charge for the period (252) (4) (249)
Adjustment in respect of prior years - 24 -
Total tax (charge)/credit (252) 20 (249)
Deferred tax
Origination and reversal of timing differences (90) (185) (1,969)
Adjustments recognised in the period for deferred tax of prior periods 49 - 35
Total charge (41) (185) (1,934)
Total tax charged in the Statement of Financial Performance (293) (165) (2,183)
The tax (charge)/credit arises as follows:
On normal trading (260) (211) (318)
Non-underlying (33) 46 (1,865)
Total charge (293) (165) (2,183)
Taxation for the half year has been provided at the effective rate of taxation
of 20% (2014: 21%) expected to apply to the whole year on ordinary trading.
Tax on non-underlying items is provided at the actual rate applicable.
6. 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 period. 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 the earnings and the weighted average number of shares used
in the calculations are set out below.
Half year to Half year to Year to
30 September 30 September 31 March
Basic 2015 2014 2015
£'000 £'000 £'000
Profit before tax 1,711 1,213 11,438
Taxation (293) (165) (2,183)
Earnings 1,418 1,048 9,255
Basic earnings per share 51.4p 38.0p 335.5p
Diluted earnings per share 50.7p 37.5p 330.7p
Adjusted
Profit before tax 1,711 1,213 11,438
Adjustment: Non-underlying items (note 3) (164) (21) (8,966)
Underlying profit before tax 1,547 1,192 2,472
Taxation (260) (211) (318)
Underlying earnings 1,287 981 2,154
Underlying earnings per share 46.6p 35.6p 78.1p
Diluted earnings per share 46.0p 35.1p 77.0p
The number of fully paid ordinary shares in issue at the period end was
2,759,678 (2014: 2,757,213). The weighted average shares in issue for the
purposes of the earnings per share calculation were 2,759,678 (2014:
2,757,213). The shares granted under the Company's SAYE scheme are dilutive.
The weighted average number of dilutive shares under option at fair value was
39,133 (2014: 35,409) giving a total diluted weighted average number of shares
of 2,798,811 (2014: 2,792,622).
The Directors consider that underlying earnings per share figures provide a
better measure of comparative performance.
7. DIVIDENDS
Ordinary shares of 50p each
The interim dividend proposed at the rate of 7.25p per share (2014: 6.75p) is
payable on 8 January 2016 to shareholders on the register at the close of
business on 11 December 2015. The shares will be marked ex-dividend on 10
December 2015.
Preference shares
Preference dividends have been paid in October 2015. The next preference
dividends are payable in April 2016. The cost of the preference dividends has
been included within finance costs.
8. PENSIONS
The net liability for defined benefit obligations has increased from
£5,388,000 at 31 March 2015 to £5,997,000 at 30 September 2015. The increase
of £609,000 comprises the net charge to the Statement of Financial Performance
of £108,000 and a net remeasurement loss charged to Reserves of £661,000 less
contributions of £160,000. Although liabilities reduced following an increase
in the discount rate from 3.3% at 31 March 2015 to 3.7% at 30 September 2015,
asset values reduced by a greater amount after taking into account benefits
paid.
9. RELATED PARTY TRANSACTIONS
There have been no new related party transactions that have taken place in the
first six months of the current financial year that have materially affected
the financial position or performance of the Group during that period and
there have been no material changes in the related party transactions
described in the last Annual Report that could do so.
10. RISKS AND UNCERTAINTIES
There are a number of potential risks and uncertainties which could have a
material impact on the Group's performance over the remaining six months of
the financial year and could cause actual results to differ materially from
expected and historical results. The Board believes these risks and
uncertainties to be consistent with those disclosed in our latest Annual
Report, including general economic factors, their impact on the Group's
defined benefit pension scheme, liquidity and financing, manufacturers'
dependency and stability, used car prices and regulatory compliance.
11. RESPONSIBILITY STATEMENT
We confirm to the best of our knowledge:
a) the Half Year Report has been prepared in accordance with IAS34
'Interim Financial Reporting';
b) the Half Year Report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules (indication of
important events during the first six months and their impact on the set of
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year); and
c) the Half Year Report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure and Transparency Rules (disclosure of
related parties' transactions and changes therein).
By order of the Board
S G M Caffyn
Chief Executive
M S Harrison
Finance Director
27 November 2015
INDEPENDENT REVIEW REPORT
to Caffyns plc
Introduction
We have reviewed the condensed set of financial statements in the Half Year
Report for the six months ended 30 September 2015 which comprises the
Condensed Consolidated Statement of Financial Performance, the Condensed
Consolidated Statement of Comprehensive Income, the Condensed Consolidated
Statement of Financial Position, the Consolidated Statement of Changes in
Equity, the Condensed Consolidated Cash Flow Statement and the related notes.
We have read the other information contained in the half yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of
financial statements.
This report is made solely to the Company's members, as a body, in accordance
with ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information
performed by the Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the Company's members those matters we
are required to state to them in a review 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
review work, for this report, or for the conclusion we have formed.
Directors' responsibilities
The Half Year Report is the responsibility of, and has been approved by, the
Directors. The Directors are responsible for preparing the Half Year Report in
accordance with the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
As disclosed in Note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this Half Year Report has
been prepared in accordance with International Accounting Standard 34,
'Interim Financial Reporting,' as adopted by the European Union.
Our responsibility
Our responsibility is to express a conclusion on the condensed set of
financial statements in the Half Year Report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the Half Year Report
for the six months ended 30 September 2015 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted
by the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.
Grant Thornton UK LLP
Auditor
Gatwick
27 November 2015
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