REG - Close Bros Grp PLC - Preliminary results for year ended 31 July 2016 <Origin Href="QuoteRef">CBRO.L</Origin> - Part 3
27/09/2016 07:06
- Part 3: For the preceding part double click ID:nRSa8726Kb
At 31 July 2016 9.7 26.1 41.6 0.3 77.7
Net book value at 31 July 2016 11.8 14.1 159.8 0.1 185.8
Net book value at 31 July 2015 10.2 10.9 127.0 0.3 148.4
Net book value at 1 August 2014 4.4 8.2 103.8 0.6 117.0
The gain from the sale of assets held under operating leases for the year ended 31 July 2016 was £0.1 million (2015:
£nil).
12. Settlement balances and short positions
31 July 31 July
2016 2015
£ million £ million
Settlement balances 456.3 376.5
Short positions held for trading:
Debt securities 5.8 13.7
Equity shares 13.5 14.1
19.3 27.8
475.6 404.3
13. Financial liabilities
On demand Within threemonths Between three months and one year Betweenone and two years Between two and five years After more than five years Total
£ million £ million £ million £ million £ million £ million £ million
Deposits by banks 31.9 1.9 26.5 10.1 0.7 - 71.1
Deposits by customers 130.8 918.0 2,117.3 1,233.4 495.1 - 4,894.6
Loans and overdrafts from banks 11.0 207.8 160.1 90.2 - - 469.1
Debt securities in issue 30.2 7.1 557.1 201.5 589.1 37.8 1,422.8
At 31 July 2016 203.9 1,134.8 2,861.0 1,535.2 1,084.9 37.8 6,857.6
On demand Within threemonths Betweenthree months and one year Betweenone and two years Betweentwo and five years Aftermore than five years Total
£ million £ million £ million £ million £ million £ million £ million
Deposits by banks 11.5 0.3 22.8 0.5 - - 35.1
Deposits by customers 154.8 828.4 2,347.7 851.2 299.3 - 4,481.4
Loans and overdrafts from banks 8.6 99.1 123.7 59.9 89.9 - 381.2
Debt securities in issue 11.2 6.7 1.1 747.8 299.3 298.9 1,365.0
At 31 July 2015 186.1 934.5 2,495.3 1,659.4 688.5 298.9 6,262.7
The group has repurchase agreements at 31 July 2016 whereby £451.0 million (2015: £375.0 million) Treasury Bills have been
drawn and lent in exchange for cash which is included within loans and overdrafts from banks above. Residual maturities of
the repurchase agreements are as follows:
On demand Within threemonths Betweenthree months and one year Betweenone and two years Betweentwo and five years Aftermore than five years Total
£ million £ million £ million £ million £ million £ million £ million
At 31 July 2016 - 197.8 160.1 90.2 - - 448.1
At 31 July 2015 - 99.1 123.7 59.9 89.9 - 372.6
14. Capital
At 31 July 2016, the group's common equity tier 1 capital ratio was 13.5% (31 July 2015: 13.7%).
Common equity tier 1 capital increased to £901.4 million (31 July 2015: £813.2 million) primarily due to growth in profit
attributable to shareholders.
Risk weighted assets increased to £6,682.5 million (31 July 2015: £5,932.1 million) as a result of growth in credit and
counterparty risk associated with the loan book. Notional risk weighted assets for operational risk also increased
reflecting increased performance over recent years.
The composition of capital remained broadly stable with 97.4% (31 July 2015: 95.9%) of the total capital consisting of
common equity tier 1 capital.
31 July 31 July
2016 2015
£ million £ million
Common equity tier 1 capital
Called up share capital 37.7 37.7
Share premium account 284.0 284.0
Retained earnings 797.5 694.4
Other reserves recognised for common equity tier 1 capital 21.8 18.3
Deductions from common equity tier 1 capital
Intangible assets, net of associated deferred tax liabilities (145.3) (140.6)
Foreseeable dividend1 (56.1) (52.4)
Investment in own shares (37.2) (25.6)
Pension asset, net of associated deferred tax liabilities (0.9) (2.5)
Prudent valuation adjustment (0.1) (0.1)
Common equity tier 1 capital 901.4 813.2
Tier 2 capital
Subordinated debt2 24.0 31.5
Unrealised gains on available for sale equity shares - 3.3
Tier 2 capital 24.0 34.8
Total regulatory capital 925.4 848.0
Risk weighted assets (notional) - unaudited
Credit and counterparty credit risk 5,824.9 5,103.2
Operational risk3 784.9 753.5
Market risk3 72.7 75.4
6,682.5 5,932.1
Common equity tier 1 capital ratio 13.5% 13.7%
Total capital ratio 13.8% 14.3%
1 Under the Regulatory Technical Standard on own funds, a deduction has been recognised at 31 July 2016 and 31 July 2015
for a foreseeable dividend being the proposed final dividend as set out in note 6.
2 Shown after applying the Capital Requirements Regulations transitional and qualifying own funds arrangements.
3 Operational and market risk include a notional adjustment at 8% in order to determine notional risk weighted assets.
The following table shows a reconciliation between equity and common equity tier 1 capital after deductions:
31 July 31 July
2016 2015
£ million £ million
Equity 1,096.9 1,009.9
Regulatory deductions from equity:
Intangible assets, net of associated deferred tax liabilities (145.3) (140.6)
Foreseeable dividend1 (56.1) (52.4)
Pension asset, net of associated deferred tax liabilities (0.9) (2.5)
Prudent valuation adjustment (0.1) (0.1)
Other reserves not recognised for common equity tier 1 capital:
Available for sale movements reserve - (3.3)
Cash flow hedging reserve 6.7 2.3
Non-controlling interests 0.2 (0.1)
Common equity tier 1 capital 901.4 813.2
1 Under the Regulatory Technical Standard on own funds, a deduction has been recognised at 31 July 2016 and 31 July 2015
for a foreseeable dividend being the proposed final dividend as set out in note 6.
The following table shows the movement in common equity tier 1 capital during the year:
£ million
Common equity tier 1 capital at 31 July 2015 813.2
Profit in the period attributable to shareholders 186.5
Dividends paid and foreseen (84.0)
Other movements in retained reserves (3.1)
Decrease in share-based payments reserve (9.8)
Increase in exchange movements reserve 1.7
Increase in intangible assets, net of associated deferred tax liabilities (4.7)
Decrease in pension assets, net of associated deferred tax liabilities 1.6
Common equity tier 1 capital at 31 July 2016 901.4
15. Consolidated cash flow statement reconciliation
31 July 31 July
2016 2015
£ million £ million
(a) Reconciliation of operating profit before tax to net cash inflow from operating activities
Operating profit before tax from continuing operations 228.5 219.9
Profit before tax on discontinued operations - 11.6
Tax paid (53.7) (53.4)
Depreciation and amortisation 49.1 41.4
(Increase)/decrease in:
Interest receivable and prepaid expenses (16.0) (4.2)
Net settlement balances and trading positions (9.7) 22.8
Net loans to/from money broker against stock advanced 16.0 (2.9)
Interest payable and accrued expenses 3.2 8.2
Net cash inflow from trading activities 217.4 243.4
(Increase)/decrease in:
Loans and advances to banks not repayable on demand (26.7) 1.6
Loans and advances to customers (693.8) (448.1)
Assets held under operating leases (51.9) (39.8)
Certificates of deposit (85.7) (115.3)
Gilts 20.0 25.0
Other assets less other liabilities 28.9 (19.1)
Increase/(decrease) in:
Deposits by banks 36.0 (14.5)
Deposits by customers 413.2 (23.0)
Loans and overdrafts from banks 87.9 371.8
Debt securities in issue, net of transaction costs 35.9 -
Net cash inflow from operating activities (18.8) (18.0)
(b) Analysis of net cash outflow in respect of the purchase of subsidiaries and non-controlling interests
Cash consideration paid (3.6) (1.0)
(c) Analysis of net cash inflow in respect of the sale of a subsidiary
Cash consideration received 2.4 36.9
Cash and cash equivalents disposed of (0.1) (13.7)
2.3 23.2
(d) Analysis of changes in financing activities
Share capital (including premium), group bond and subordinated loan capital1:
Opening balance 566.6 596.5
Prepayment of subordinated loan capital - (30.0)
Shares issued for cash - 0.1
566.6 566.6
(e) Analysis of cash and cash equivalents2
Cash and balances at central banks 840.6 1,031.2
Loans and advances to banks repayable on demand 82.7 72.5
923.3 1,103.7
1 Excludes accrued interest.
2 Excludes Bank of England cash reserve account and amounts held as collateral.
Cautionary statement
Certain statements included or incorporated by reference within this preliminary results announcement may constitute
"forward-looking statements" in respect of the group's operations, performance, prospects and/or financial condition.
Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as
"anticipates", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential",
"targets", "goal" or "estimates". By their nature, forward-looking statements involve a number of risks, uncertainties and
assumptions and actual results or events may differ materially from those expressed or implied by those statements.
Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any
forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken
as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted
to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in
this preliminary results announcement should be construed as a profit forecast. This preliminary results announcement does
not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or
other securities in the company, nor shall it or any part of it or the fact of its distribution form the basis of, or be
relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a
recommendation regarding the shares or other securities of the company. Past performance cannot be relied upon as a guide
to future performance and persons needing advice should consult an independent financial adviser. Statements in this
preliminary results announcement reflect the knowledge and information available at the time of its preparation. Liability
arising from anything in this preliminary results announcement shall be governed by English law. Nothing in this
preliminary results announcement shall exclude any liability under applicable laws that cannot be excluded in accordance
with such laws.
This information is provided by RNS
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