REG - Carr's Group PLC - Final Results <Origin Href="QuoteRef">CARRC.L</Origin> - Part 2
14/11/2016 07:06
- Part 2: For the preceding part double click ID:nRSN0337Pa
Effect of exchange rate changes 918 (150)
Net increase/(decrease) in cash and cash equivalents 23,512 (750)
Cash and cash equivalents at beginning of the year 16,275 17,025
Cash and cash equivalents at end of the year 39,787 16,275
NOTES TO THE UNAUDITED PRELIMINARY ANNOUNCEMENT
1. Basis of preparation
The Group's unaudited Preliminary Announcement does not constitute statutory
consolidated financial statements for the year ended 3 September 2016 or the
year ended 29 August 2015. The statutory accounts for the year ended 3
September 2016 will be finalised on the basis of the financial information
presented by the Directors in this preliminary announcement and will be
delivered to the Registrar of Companies following the Company's Annual General
Meeting.
The financial statements for the year ended 29 August 2015 were unqualified
and have been delivered to the Registrar of Companies.
The prior year consolidated income statement has been restated for the
reclassification to interest income of the net interest on the net defined
benefit retirement asset previously recognised within operating profit.
Comparatives at 29 August 2015 have been restated by £141,000, increasing
finance income and reducing operating profit with no impact to profit before
tax.
The prior year balance sheet has been restated for the grossing up of cash and
cash equivalents and bank overdraft, included within current borrowings, for
accounts with right of offset within the same banking facility. Comparatives
at 29 August 2015 have been restated by £3,564,000,increasing both cash and
cash equivalents and current borrowings with no impact to net assets.
2. Segmental information
The segmental information for the year ended 3 September 2016 is as follows:
Agriculture£'000 Engineering£'000 Group£'000
Total segment revenue 284,836 30,192 315,028
Inter segment revenue (63) (58) (121)
Revenue from external customers 284,773 30,134 314,907
EBITDA1 12,924 3,555 16,479
Depreciation of property, plant and equipment (2,539) (1,043) (3,582)
Depreciation of investment property (6) - (6)
Profit on the disposal of property, plant and equipment 12 72 84
Amortisation of intangible assets (133) (72) (205)
Operating profit 10,258 2,512 12,770
Finance income 236
Finance costs (1,009)
11,997
Share of post-tax profit of associate 1,239
Share of post-tax profit of joint ventures 842
Profit before taxation from continuing operations 14,078
1 Earnings before interest, tax, depreciation and amortisation (and before
profit/(loss) on the disposal of property, plant and
equipment)
The segmental information for the year ended 29 August 2015 (restated) is as
follows:
Agriculture£'000 Engineering£'000 Group£'000
Total segment revenue 297,858 33,588 331,446
Inter segment revenue (115) (46) (161)
Revenue from external customers 297,743 33,542 331,285
EBITDA1 11,882 3,573 15,455
Depreciation of property, plant and equipment (2,365) (815) (3,180)
Depreciation of investment property (6) - (6)
Profit/(loss) on the disposal of property, plant and equipment 38 (24) 14
Amortisation of intangible assets (100) (93) (193)
Operating profit 9,449 2,641 12,090
Finance income 338
Finance costs (1,045)
11,383
Share of post-tax profit of associate 1,500
Share of post-tax profit of joint ventures 807
Profit before taxation from continuing operations 13,690
1 Earnings before interest, tax, depreciation and amortisation (and before
profit/(loss) on the disposal of property, plant and
equipment)
3. Taxation
2016 2015
£'000 £'000
Continuing operations
(a) Analysis of the charge in the year
Current tax:
UK corporation tax
Current year 952 1,104
Adjustment in respect of prior years 173 137
Foreign tax
Current year 680 621
Adjustment in respect of prior years - (33)
Group current tax 1,805 1,829
Deferred tax:
Origination and reversal of timing differences
Current year 1,177 1,199
Adjustment in respect of prior years (75) (18)
Group deferred tax 1,102 1,181
Tax on profit from ordinary activities 2,907 3,010
(18)
Group deferred tax
1,102
1,181
Tax on profit from ordinary activities
2,907
3,010
Continuing operations
(b) Factors affecting tax charge for the yearThe tax assessed for the year is higher (2015: higher) than the rate of corporation tax in the UK of 20% (2015: 20.58%). The differences are explained below:
2016£'000 2015£'000
Profit before taxation 14,078 13,690
Tax at 20% (2015: 20.58%)Effects of: Tax effect of share of profit in associate and joint ventures Tax effect of expenses that are not allowable in determining taxable profit Tax effect of non-taxable income Effects of different tax rates of foreign subsidiaries Effects of changes in tax rates Adjustment in respect of prior years 2,816 (416)-(105)704(190)98 2,817 (475)148(31)478(13)86
Total tax charge for the year 2,907 3,010
4. Earnings per share
Basic earnings per share are based on profit attributable to shareholders and
on a weighted average number of shares in issue during the year of 90,087,357
(2015: 89,574,461). The calculation of diluted earnings per share is based on
92,034,155 shares (2015: 92,672,538).
2016 2015
Earnings £'000 Earnings per share pence Earnings £'000 Earnings per sharepence
Continuing operations
Earnings per share - basic 9,638 10.7 8,976 10.0
Amortisation and non-recurring items:
Amortisation of intangible assets 205 0.2 193 0.2
Taxation relief on amortisation (47) - (49) (0.1)
Acquisition related costs1 7 - 58 0.1
Earnings per share - adjusted 9,803 10.9 9,178 10.2
Discontinued operations
Earnings per share - basic 2,817 3.1 3,013 3.4
Amortisation and non-recurring items:
Amortisation of intangible assets 14 - 15 -
Taxation relief on amortisation - - (3) -
Profit on disposal of subsidiary (39) - - -
Earnings per share - adjusted 2,792 3.1 3,025 3.4
Total earnings per share - adjusted 12,595 14.0 12,203 13.6
1Disallowable for tax purposes
5. Discontinued operations
On 3 September 2016 Carr's Group plc disposed of its entire shareholding in
Carr's Flour Mills Ltd for a gross consideration of £36m on a cash and debt
free basis, less costs to sell.
An analysis of the result of discontinued operations, and the gain recognised
on the re-measurement to fair value less costs to sell, is as follows:
2016 2015
£'000 £'000
Revenue 71,440 80,280
Expenses (67,950) (76,503)
Profit before taxation of discontinued operations 3,490 3,777
Taxation (712) (764)
Profit after tax of discontinued operations 2,778 3,013
Pre-taxation gain recognised on the measurement to fair value less costs to sell 39 -
Taxation - -
After taxation gain recognised on the measurement to fair value less costs to sell 39 -
Profit for the year from discontinued operations 2,817 3,013
6. Cash generated from continuing operations
2016 2015
£'000 £'000
Continuing operations
Profit for the year 11,171 10,680
Adjustments for:
Tax 2,907 3,010
Tax credit in respect of R&D (176) (292)
Depreciation of property, plant and equipment 3,582 3,180
Depreciation of investment property 6 6
Intangible asset amortisation 205 193
Profit on disposal of property, plant and equipment (84) (14)
Loss on disposal of investment 10 -
Amortisation of grants (53) (20)
Net fair value (gain)/loss on share based payments (99) 520
Net foreign exchange differences (383) 53
Net fair value losses/(gains) on derivative financial instruments in operating profit 70 (65)
Interest income (236) (338)
Interest expense and borrowing costs 1,045 1,077
Share of profit from associate and joint ventures (2,081) (2,307)
Pension contributions - deficit reduction - ongoing (780)(108) (2,340)(339)
IAS19 income statement (credit)/charge excluding interest (287) 261
Changes in working capital (excluding the effects of acquisitions and disposals):
Increase in inventories (1,620) (1,886)
(Increase)/decrease in receivables (3,606) 63
Decrease in payables (3,226) (2,322)
Cash generated from continuing operations 6,257 9,120
7. Pensions
The Group operates its current pension arrangements on a defined benefit and
defined contribution basis. The valuation of the defined benefit scheme under
the IAS19 accounting basis showed a surplus net of the related deferred tax
liability in the scheme at 3 September 2016 of £0.3m (2015: £1.4m).
In the year, the retirement benefit credit, excluding interest, in respect of
the Carr's Group Pension Scheme was £287,000 (2015: charge of £261,000). As a
result of the closure to future service accrual on 31 December 2015 a negative
past service cost, net of associated costs, of approximately £350,000 has been
recognised in the income statement credit.
A Group subsidiary undertaking is a participating employer in a defined
benefit pension scheme of the associate. The IAS19 accounting basis showed a
deficit, for that scheme, net of the related deferred tax asset in the scheme
at 3 September 2016 of £4.2m (2015: £2.6m). The scheme is treated as a defined
contribution scheme by the Group, and its level of participation in the scheme
is estimated at 48.5%, which is based on its estimated share of the buyout
liabilities. Due to the fact that the sponsoring employer is an associate
company of the Group, 49% of the deficit calculated on an IAS19 accounting
basis is included in the Group's balance sheet within its 'Investment in
Associate'.
8. Analysis of changes in net (debt)/cash
At 30August Cash OtherNon-Cash Exchange At 3 September
2015 Flow Changes Movements 2016
£'000 £'000 £'000 £'000 £'000
Cash and cash equivalents 20,052 27,441 - 918 48,411
Bank overdrafts (3,777) (4,847) - - (8,624)
16,275 22,594 - 918 39,787
Loans and other borrowings:- current- non-current (12,770)(18,444) 1,902- (1,374)1,336 (134)- (12,376)(17,108)
Finance leases:
- current (2,174) 2,333 (801) - (642)
- non-current (7,300) - 5,783 - (1,517)
Net (debt)/cash (24,413) 26,829 4,944 784 8,144
9. The Board of Directors approved the preliminary announcement on 14
November 2016.
10. The Company intends to post a Summary Report and Accounts to
shareholders by 1 December 2016. The full Report and Accounts will be
available upon request from the Company Secretary, Carr's Group plc, Old
Croft, Stanwix, Carlisle, CA3 9BA or alternatively on the Company's website:
www.carrsgroup.com
This information is provided by RNS
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