REG - Chamberlin PLC - Final Results <Origin Href="QuoteRef">CMH.L</Origin> - Part 2
23/05/2017 07:06
- Part 2: For the preceding part double click ID:nRSW8949Fa
(410) (178)
Profit for the year from discontinued operations (219) (336)
Earnings for underlying earnings per share 374 114
2017 2016
Number'000 Number'000
Weighted average number of ordinary shares 7,958 7,958
Adjustment to reflect shares under options 350 160
Weighted average number of ordinary shares - fully diluted 8,308 8,118
As at 31 March 2017 and 31 March 2016 there is no adjustment in the total
diluted loss per share calculation for the 350,000 and 160,300 shares
respectively under option as they are required to be excluded from the
weighted average numberof shares for diluted loss per share as they are
anti-dilutive for the period then ended.
6. EXCEPTIONAL COSTS AND NON-UNDERLYING
2017 2016
£000 £000
Group reorganisation 138 143
Exceptional costs 138 143
Share based payment charge 28 54
Defined benefit pension scheme administration costs 199 230
Non-underlying other operating expenses 365 427
Finance cost of pensions 160 142
Taxation
- tax effect of exceptional and non-underlying costs (105) (104)
420 465
Non-underlying exceptional costs of discontinued operation 1,451 320
Tax effect of exceptional costs (305) (74)
1,146 246
During 2016 and continuing into 2017 the Group continues to rationalise its
cost base. Group reorganisation costs, including redundancy and recruitment,
relate to this rationalisation.
During 2017 the Group took the decision to close the Leicester foundry.
Non-underlying exceptional costs of discontinued operations, including
assetimpairment, redundancy and site clean up costs, relate to this closure.
7. FINANCIAL LIABILITIES
2017 2016
£000 £000
Current liabilities
Bank overdraft 216 126
Current instalments due on asset finance loans 200 200
Invoice finance facility 3,510 2,582
Import loan facility 1,235 -
Current instalments due on finance leases 359 33
5,520 2,941
Non-current liabilities
Instalments due on asset finance loans - 200
Instalments due on finance leases 1,308 51
Total financial liabilities 6,828 3,192
The overdraft is held with HSBC Bank plc as part of the Group facility of
£500,000, is secured on all assets of the business, is repayable on demand and
is renewable in March 2018. Interest is payable at 2.0% (2016: 2.0%) over base
rate.
Asset finance loans are secured against various items of plant and machinery
across the Group. These loans are repayable by monthly instalments for a
period of one year to March 2018. Interest is payable at 3.25% over base
rate.
The import loan facility is used to facilitate the purchase of equipment for
the new machine centre. Once each asset is commissioned the import loan
facility is repaid in full, facilitated by a sale and lease back on finance
lease. Interest is payable at 3.25% over base rate.
Other finance leases are secured against the specific item to which they
relate. These leases are repayable by monthly instalments for a period of 5
years to March 2022. Interest is payable at fixed amounts that range between
3.1% and 6.1%.
Invoice finance balances are secured against the trade receivables of the
Group and are repayable on demand. Interest is payable at 2.3% over base rate.
The maximum facility as at 31 March 2017 is £7.0m. Management have assessed
the treatment of the financing arrangements and have determined it is
appropriate to recognise trade receivables and invoice finance liabilities
separately.
8. PENSIONS ARRANGEMENTS
During the year, the Group operated funded defined benefit and defined
contribution pension schemes for the majority of its employees, these being
established under trusts with the assets held separately from those of the
Group. The pension operating cost for the Group defined benefit scheme for
2017 was£199,000 (2016: £230,000) plus £160,000 of financing cost (2016:
£142,000).
The other schemes within the Group are defined contribution schemes and the
pension cost represents contributions payable. The total cost of defined
contributions schemes was £353,000 (2016: £331,000). The notes below relate
to the defined benefit scheme.
The actuarial liabilities have been calculated using the Projected Unit
method. The major assumptions used by the actuary were (in nominal terms):-
31 March2017 31 March2016 31 March 2015
Salary increases n/a n/a n/a
Pension increases (post 1997) 3.3% 2.9% 2.9%
Discount rate 2.5% 3.5% 3.2%
Inflation assumption - RPI 3.3% 2.9% 2.9%
Inflation assumption - CPI 2.3% 2.1% 1.8%
Demographic assumptions are all based on the S2PA (2016: S1NA) mortality
tables with a 1% annual increase. The post retirement mortality assumptions
allow for expected increases in longevity. The current disclosures relate to
assumptions based on longevity in years following retirement as of the balance
sheet date, with future pensions relating to an employee retiring in 2032.
2017Years 2016Years
Current pensioner at 65 - male 21.1 21.4
- female 22.9 23.7
Future pensioner at 65 - male 22.1 22.4
- female 24.0 24.8
The scheme was closed to future accrual with effect from 30th November 2007,
after which the Company's regular contribution rate reduced to zero
(previously the rate had been 9.1% of members' pensionable salaries).
The triennial valuation as at 1 April 2016 is currently being negotiated. The
triennial valuation as at 1 April 2013 concluded that in return for
maintaining the previous contribution arrangements and extendingthe deficit
reduction period to 2028, the Company has given security over the Group's land
and buildings to the pension scheme. With effect from 1 April 2017deficit
reduction contributions will increase to £21,890 per month (previously £21,252
per month), with a 3% annual increase thereafter.
The contributions expected to be paid during the year to 31 March 2018 are
£263,000.
The scheme assets are stated at the market values at the respective balance
sheet dates. The assets and liabilities of the scheme were:
2017£000 2016£000
Equities/ diversified growth fund 12,325 11,719
Bonds 1,143 1,123
Insured pensioner assets 30 9
Cash 50 123
Market value of assets 13,548 12,974
Actuarial value of liability (18,757) (17,666)
Scheme deficit (5,209) (4,692)
Related deferred tax asset 886 845
Net pension liability (4,323) (3,847)
Net benefit expense recognised in profit and loss 2017£000 2016£000
Operating costs (199) (230)
Net interest expense (160) (142)
(359) (372)
Re-measurement losses/ (gains) in other comprehensive income 2017£000 2016£000
Actuarial losses/ (gains) arising from changes in financial assumptions 2,703 (575)
Actuarial gains arising from changes in demographic assumptions (599) -
Experience adjustments (254) (5)
Return on assets (excluding interest income) (1,238) 834
612 254
2017£000 2016£000
Actual return on plan assets 1,673 (396)
Movement in deficit during the year 2017£000 2016£000
Deficit in scheme at beginning of year (4,692) (4,544)
Employer contributions 255 248
Net interest expense (160) (142)
Actuarial loss (612) (254)
Deficit in scheme at end of year (5,209) (4,692)
Movement in scheme assets 2017£000 2016£000
Fair value at beginning of year 12,974 14,008
Interest income on scheme assets 435 438
Return on assets (excluding interest income) 1,238 (834)
Employer contributions 255 248
Benefits paid (1,354) (886)
Fair value at end of year 13,548 12,974
Movement in scheme liabilities 2017£000 2016£000
Benefit obligation at start of year 17,666 18,552
Interest cost 595 580
Actuarial losses/ (gains) arising from changes in financial assumptions 2,703 (575)
Actuarial gains arising from changes in demographic assumptions (599) -
Experience adjustments (254) (5)
Benefits paid (1,354) (886)
Benefit obligation at end of year 18,757 17,666
The weighted average duration of the pension scheme liabilities are 14.0 years
(2016: 14.5 years).
A quantitative sensitivity analysis for significant assumptions as at 31 March
2017 is as shown below:
Present value of scheme liabilities when changing the following assumptions: 2017£000
Discount rate increased by 1% p.a. 16,443
RPI and CPI increased by 1% p.a. 19,859
Mortality- members assumed to be their actual age as opposed to 1 year older 19,575
The sensitivity analysis above has been determined based on a method that
extrapolates the impact on defined benefit obligations as a result of
reasonable changes in key assumptions occurring at the end of the year.
9. REPORT AND ACCOUNTS
Copies of the Annual Report will be available on the Group's website,
www.chamberlin.co.uk from 24 June 2017 and from the Group's head office at
Chuckery Road, Walsall, West Midlands, WS1 2DU. The AGM will be held on 20
July 2017 at Chuckery Road, Walsall, West Midlands, WS1 2DU.
This information is provided by RNS
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