REG - Eleco PLC - Half Yearly Report <Origin Href="QuoteRef">ELCO.L</Origin> - Part 2
29/10/2014 15:03
- Part 2: For the preceding part double click ID:nRSc8012Sa
items net of tax 6,190 - -
Net profit/(loss) for the period from discontinued operations 5,960 (3,644) (10,668)
The net profit from de-recognition of the pension scheme liability related to
the ERBS and associated deferred tax included in the income statement is set
out below:
Year ended
six months to 30 June 31 December
2014 2013 2013
£'000 £'000 £'000
Retirement benefit obligation 7,738 - -
Profit before tax 7,738 - -
Deferred tax (1,548) - -
Profit after tax 6,190 - -
7. Earnings per share
The calculations of the earnings per share are based on the total loss after
tax attributable to ordinary equity shareholders of the Company and the
weighted average number of shares in issue for the reporting period.
The impact of de-recognition of the pension scheme liability and associated
deferred tax in the period on the calculation of the earnings per share is
reported as an exceptional item in the table below.
Year ended
six months to 30 June 31 December
2014 2013 2013
Continuing operations £439,000 £178,000 £450,000
Discontinued operations before exceptionals £(230,000) £(3,644,000) £(10,668,000)
£209,000 £(3,466,000) £(10,218,000)
Discontinued operations exceptionals £6,190,000 - -
Total operations profit/(loss) after taxation £6,399,000 £(3,466,000) £(10,218,000)
Weighted average number of shares in issue in the period 59,812,119 59,761,646 59,761,646
Dilutive effect of share options - - -
Number of shares for diluted earnings per share 59,812,119 59,761,646 59,761,646
Earnings/(loss) per share - basic and diluted
Continuing operations 0.7 p 0.3 p 0.8 p
Discontinued operations before exceptionals (0.4) p (6.1) p (17.9) p
0.3 p (5.8) p (17.1) p
Discontinued operations exceptionals 10.4 p - p - p
Total operations 10.7 p (5.8) p (17.1) p
On 28 June 2014, 3,028,405 new ordinary shares were issued at a price of
20.75p per share. This was the first stage of two share subscriptions and
raised £628,000. There were no outstanding share options at 30 June 2014 and
therefore no dilution effect on the basic earnings per share.
8. Borrowings
The bank loans and overdrafts are repayable as follows:
at 30 June at 30 June at 31 December
2014 2013 2013
£'000 £'000 £'000
In one year or less 4,454 3,825 5,108
Between one and two years - 400 -
Between two and five years - 3,200 -
More than five years - - -
4,454 7,425 5,108
9. Retirement benefit obligation
ELECO plc recently operated one defined benefit scheme in the UK, the ELECO
Retirement and Benefits Scheme (ERBS).
On 6 January 2014, an Administrator was appointed to Bell & Webster Concrete
Limited, the last remaining trading Statutory Employer of the Pension Scheme.
On 9 June 2014 the Official Receiver was appointed to the other dormant
companies which were Statutory Employers of the Pension Scheme and these
companies together with Bell & Webster Concrete Limited are no longer
consolidated in the results of the ELECO Group at 30 June 2014. Consequently,
the pension scheme liability attributable to all these companies together with
the associated deferred tax has been de-recognised from the Group balance
sheet at 30 June 2014 and reported in discontinued operations on the income
statement. Further information on the ERBS is set out on page 51 of the 2013
report and accounts.
10. Contingent liabilities
It is the Group's policy to make specific provisions at the balance sheet date
for all liabilities which, in the opinion of the Directors, represent a
present obligation and outflow of resources to be probable at the balance
sheet date.
The ERBS is currently in an assessment period with the Pension Protection Fund
(PPF) after which, in the absence of unforeseen circumstances, the ERBS would
transfer to the PPF and members of the ERBS would be entitled to PPF
compensation. The ERBS liability is recognised as a contingent liability at 30
June 2014, pending confirmation that the ERBS has completed its PPF assessment
period and the PPF has assumed liability for paying compensation to the
members.
The Directors have considered all the facts surrounding the de-recognition of
the pension scheme together with open claims and any pending litigation
against the Group at 30 June 2014 and concluded that no material loss is
likely to accrue from any such un-provided claims.
11. Related Party Disclosures
Transactions between Group undertakings, which are related parties, have been
eliminated on consolidation and are not disclosed in this note.
The Directors of the Company had no material transactions with the Company
during the six months to 30 June 2014, other than a result of service
agreements. An amount of £18,000 (2013: £18,000) was paid to JHB Ketteley &Co
Limited under a lease for occupation by the Group of 66 Clifton Street,
London, EC2A 4HB and £3,000 (2013: £3,000) for a contribution to the office
costs at Burnham-on-Crouch.
This information is provided by RNS
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