REG - Halma PLC - Final Results <Origin Href="QuoteRef">HLMA.L</Origin> - Part 5
16/07/2015 10:27
- Part 5: For the preceding part double click ID:nRSK8263Pd
dividend for the year to 29 March 2014 (30 March 2013) 6.82 6.37 25,799 24,049
Interim dividend for the year to 28 March 2015 (29 March 2014) 4.65 4.35 17,600 16,436
11.47 10.72 43,399 40,485
Dividends declared in respect of the year
Interim dividend for the year to 28 March 2015 (29 March 2014) 4.65 4.35 17,600 16,436
Proposed final dividend for the year to 28 March 2015 (29 March 2014) 7.31 6.82 27,652 25,799
11.96 11.17 45,252 42,235
The proposed final dividend is subject to approval by shareholders at the Annual General Meeting on 23 July 2015 and has not been included as a liability in these financial statements. If approved, the final dividend for 2014/15 will be paid on 19 August 2015 to shareholders on the register at the close of business on 17 July 2015.The Company offers a Dividend Reinvestment Plan ('DRIP') to enable shareholders to elect to have their cash dividends reinvested in Halma shares. Shareholders who wish to elect
for the DRIP for the forthcoming final dividend, but have not already done so, should return a DRIP mandate form to the Company's Registrars no later than 29 July 2015.
8 Acquisitions In accounting for acquisitions, adjustments are made to the book values of the net assets of the companies acquired to reflect their fair values to the Group. Acquired inventories are valued at fair value adopting Group bases and any liabilities for warranties relating to past trading are recognised. Other previously unrecognised assets and liabilities at acquisition are included and accounting policies are aligned with those of the Group where appropriate.The Group made three acquisitions
during the year: Rohrback Cosasco Systems Inc. (RCS); Advanced Electronics Limited (Advanced); and Plasticspritzerei AG (Plasticspritzerei). Below are summaries of the assets and liabilities acquired and the purchase consideration of:a) The total of RCS, Advanced and Plasticspritzerei;b) RCS, on a standalone basis;c) Advanced, on a standalone basis; andd) Plasticspritzerei, on a standalone basis.
(A) Total of RCS, Advanced and Plasticspritzerei Book value Fair value adjustments Total
£000 £000 £000
Non-current assets
Intangible assets 3,508 30,604 34,112
Property, plant and equipment 2,286 52 2,338
Deferred tax - 226 226
Current assets
Inventories 5,303 (388) 4,915
Trade and other receivables 9,833 (2,046) 7,787
Corporation tax 251 153 404
Cash and cash equivalents 9,515 104 9,619
Total assets 30,696 28,705 59,401
Current liabilities
Trade and other payables (4,569) 501 (4,068)
Provisions (110) (515) (625)
Corporation tax (686) 327 (359)
Non-current liabilities
Provisions - (17) (17)
Bank loans (468) - (468)
Retirement benefit obligations - (234) (234)
Deferred tax (28) (9,288) (9,316)
Total liabilities (5,861) (9,226) (15,087)
Net assets of businesses acquired 24,835 19,479 44,314
Initial consideration paid (RCS, Advanced and Plasticspritzerei)* 91,286
Contingent purchase consideration paid (Advanced)* 2,800
Contingent purchase consideration estimated to be paid (Advanced) 3,254
Total consideration 97,340
Goodwill arising on current year acquisitions 53,026
* The initial and contingent purchase considerations paid in cash were £90,828,000 and £2,601,000 respectively. The remainder was satisfied by the issue of £657,000 of loan notes.
Due to their contractual dates, the fair value of receivables acquired (shown above) approximate to the gross contractual amounts receivable. The amount of gross contractual receivables not expected to be recovered is immaterial. There are no material contingent liabilities recognised in accordance with paragraph 23 of IFRS 3 (revised).None of the goodwill arising on acquisitions in the year is expected to be deductible for tax purposes.The three acquisitions in the year contributed £36,110,000 of revenue
and £6,695,000 of profit after tax for the year ended 28 March 2015. If these acquisitions had been held since the start of the financial year, it is estimated the Group's reported revenue and profit after tax would have been £6,843,000 and £1,146,000 higher respectively.The combined fair value adjustments made for all acquisitions, excluding acquired intangible assets recognised and deferred tax thereon, resulted in net adjustments to goodwill of £3,831,000.
Analysis of cash outflow in the Consolidated Cash Flow Statement 2015 2014
£000 £000
Initial cash consideration paid 90,828 3,315
Initial cash consideration adjustment (prior year acquisition) - (337)
Cash acquired on acquisitions (9,619) (754)
Contingent consideration paid in relation to current year acquisitions 2,601 -
Contingent consideration paid and loan notes repaid in cash in relation to prior year acquisitions* 3,933 14,461
Net cash outflow relating to acquisitions (per Consolidated Cash Flow Statement) 87,743 16,685
* The £3,933,000 comprises £2,731,000 loan notes and £1,202,000 contingent purchase consideration paid in respect of prior period acquisitions, all of which had been provided in the prior year's financial statements.
(B) Rohrback Cosasco Systems Inc. Book value Fair value adjustments Total
£000 £000 £000
Non-current assets
Intangible assets 420 25,146 25,566
Property, plant and equipment 441 102 543
Deferred tax - 203 203
Current assets
Inventories 4,098 (353) 3,745
Trade and other receivables 4,191 (192) 3,999
Cash and cash equivalents 5,441 - 5,441
Corporation tax 251 (61) 190
Total assets 14,842 24,845 39,687
Current liabilities
Trade and other payables (1,521) (169) (1,690)
Provisions - (148) (148)
Non-current liabilities
Deferred tax (28) (7,677) (7,705)
Total liabilities (1,549) (7,994) (9,543)
Net assets of businesses acquired 13,293 16,851 30,144
Initial consideration (all cash) 69,681
Total consideration 69,681
Goodwill arising on acquisition 39,537
The Group acquired the entire share capital of Rohrback Cosasco Systems Inc. and associated companies (RCS), on 30 May 2014 for an initial cash consideration of US$116,000,000 (£69,341,000). This was subsequently adjusted by an additional US$569,000 (£340,000) which was paid in July 2014 based on the final agreed value of the net tangible assets at the acquisition date.RCS forms part of the Process Safety sector and specialises in the design, manufacture and sale of pipeline corrosion monitoring products
and systems into diverse industries including oil, gas, petrochemical, pharmaceutical and utilities. The acquisition of RCS expands Halma's portfolio of critical safety products which are sold into the Energy and Utility markets to protect life and operational assets. The existing RCS management team remain in place and will continue to operate the business. The excess of the fair value of the consideration paid over the fair value of the assets acquired is represented by customer related intangibles of
£14,697,000; marketing and technology related intangibles of £10,869,000; with residual goodwill arising of £39,537,000. The goodwill represents: a) the technical expertise of the acquired workforce;b) the opportunity to leverage this expertise across some of Halma's businesses; and c) the ability to exploit the Group's existing customer base.The RCS acquisition contributed £22,038,000 of revenue and £3,705,000 of profit after tax for the year ended 28 March 2015. If this acquisition had been held
since the start of the financial year, it is estimated that the Group's reported revenue and profit after tax would have been £5,525,000 and £771,000 higher respectively.
(C) Advanced Electronics Limited Book value Fair value adjustments Total
£000 £000 £000
Non-current assets
Intangible assets 3,088 5,458 8,546
Property, plant and equipment 1,834 (606) 1,228
Deferred Tax - 23 23
Current assets
Inventories 1,124 1 1,125
Trade and other receivables 5,046 (1,890) 3,156
Corporation tax - 214 214
Cash and cash equivalents 2,259 104 2,363
Total assets 13,351 3,304 16,655
Current liabilities
Trade and other payables (2,759) 703 (2,056)
Provisions - (363) (363)
Corporation tax (582) 582 -
Non-current liabilities
Bank loans (468) - (468)
Deferred tax - (1,611) (1,611)
Total liabilities (3,809) (689) (4,498)
Net assets of businesses acquired 9,542 2,615 12,157
Initial consideration 15,927
Contingent purchase consideration paid 2,800
Contingent purchase consideration estimated to be paid 3,254
Total consideration 21,981
Goodwill arising on acquisition 9,824
The Group acquired the entire share capital of Advanced Electronics Limited (Advanced) on 14 May 2014 for an initial consideration of £15,927,000 (£458,000 of which was satisfied by loan notes). Contingent consideration is payable over a two year period based on the profits of the company for the twelve months to April 2014 and eleven months to March 2015. The total estimated payable was £6,054,000, of which £2,601,000 has been paid in cash and £199,000 in loan notes in the year. The remainder, subject to
actual performance, is payable in June 2015. The maximum contingent consideration payable is £10,100,000. Management's current best estimate of the likely total payable has been increased by £102,000 to £6,156,000 based on performance observed to date.Advanced forms part of the Infrastructure Safety sector and specialises in the manufacture of networked fire detection and control systems. Advanced's controllers can be integrated into system solutions using field devices and products from a broad spectrum of
suppliers, meeting the increasing diversity of regulatory requirements across the world. Its main manufacturing facility is located near Newcastle in the UK with a dedicated electronics and software development facility in Barnsley. It has additional commercial offices in the UK, the USA and Dubai. Advanced brings to Halma complementary products that help capture the international growth opportunity in the increasingly regulated Fire market. The excess of the fair value of the consideration paid over the
fair value of the assets acquired is represented by customer related intangibles of £5,306,000; marketing and technology related intangibles of £1,462,000; with residual goodwill arising of £9,824,000. Included in the £5,458,000 fair value adjustment to intangible assets shown above is a reduction of £1,310,000 to the carrying value of capitalised development costs resulting from the application of Halma accounting policies to the acquisition date balance. The residual goodwill represents: a) the
technical expertise of the acquired workforce;b) the opportunity to leverage this expertise across some of Halma's businesses; and c) the ability to exploit the Group's existing customer base.The Advanced acquisition contributed £13,936,000 of revenue and £2,301,000 of profit after tax for the year ended 28 March 2015. If this acquisition had been held since the start of the financial year, it is estimated that the Group's reported revenue and profit after tax would have been £1,318,000 and £323,000
higher respectively.
(D) Plasticspritzerei AG Book value Fair value adjustments Total
£000 £000 £000
Non-current assets
Property, plant and equipment 11 556 567
Current assets
Inventories 81 (36) 45
Trade and other receivables 596 36 632
Cash and cash equivalents 1,815 - 1,815
Total assets 2,503 556 3,059
Current liabilities
Trade and other payables (289) (33) (322)
Provisions (110) (4) (114)
Corporation tax (104) (255) (359)
Non-current liabilities
Provisions - (17) (17)
Retirement benefit obligations - (234) (234)
Total liabilities (503) (543) (1,046)
Net assets of businesses acquired 2,000 13 2,013
Initial cash consideration 5,678
Total consideration 5,678
Goodwill arising on acquisition 3,665
On 2 May 2014 the Group acquired Plasticspritzerei AG (Plasticspritzerei), located in Wolfhalden, Switzerland at the same facility as another Group company, Medicel AG (Medicel). Initial consideration paid for the company was CHF8,403,000 (£5,678,000) including the consideration of CHF903,000 (£610,000) received for the Group's disposal of its 50% ownership interest in its associate PSRM Immobilien AG (PSRM) and CHF2,687,000 (£1,815,000) paid for the industrial segment of Plasticspritzerei. The Group then
immediately sold the industrial segment of the business to a third party, resulting in a net cash cost to the Group of CHF4,813,000 (£3,253,000), (CHF5,716,000 (£3,863,000) excluding the proceeds from the PSRM disposal). These transactions have resulted in the Group owning only those assets which support Medicel's business. Plasticspritzerei will be operated by Medicel's management within Halma's Medical sector, further expanding the Group's manufacturing excellence in ophthalmic diagnostic and surgical
instrumentation. No customer relationship intangibles were recognised as part of this transaction because Medicel is the sole customer for the Plasticspritzerei business acquired and the fair value of any customer relationship is therefore eliminated from a Group perspective. Goodwill of £3,665,000 was recognised as part of this transaction, representing the excess of the fair value of consideration transferred over the fair value of the assets acquired and is attributable to: a) the technical expertise
of the acquired workforce;b) the opportunity to secure and advance the supply chain of Medicel AG; andc) the ability to exploit the Group's existing customer base.The Plasticspritzerei acquisition resulted in intercompany sales to Medicel of £2,176,000 and external sales of £136,000 for the period ended 28 March 2015 and contributed £689,000 to profit after tax for the Group for the same period. If this acquisition had been held since the start of the financial year, it is estimated that the Group's
reported revenue and profit after tax would have been £nil and £52,000 higher respectively.
9 Disposal of operations On 30 May 2014, the Group disposed of Monitor Elevator Products, Inc. (Monitor) from its Infrastructure Safety sector. The total consideration was US$6,243,000 (£3,716,000), of which US$5,514,000 (£3,282,000) was received in cash at completion, before subsequently being reduced by US$171,000 (£102,000) for the final agreed closing net asset value. The remaining US$900,000 was retained in escrow to be released to Halma on the second anniversary of the transaction subject to any
valid warranty/indemnity claims being made by the purchaser. The Directors estimate that the entire US$900,000 held in escrow will be received.The profit on disposal was US$1,808,000 (£1,076,000), which is net of £189,000 of cumulative foreign exchange losses reclassified to the Income Statement and £273,000 of disposal costs. Net assets disposed were US$3,659,000 (£2,178,000). No goodwill was disposed of or impaired as a result of this transaction. The Group's partial disposal of Optomed during the year
for E876,000 (£695,000) resulted in a profit on disposal of £223,000.The Group's disposal of its 50% ownership interest in PSRM Immobilien AG (PSRM) for CHF903,000 (£610,000) resulted in a fair value gain being recognised in the Income Statement of £131,000. This represented the excess of the fair value of the Group's interest in the associate over its carrying value.The £4,248,000 cash inflow on disposal of operations shown in the Consolidated Cash Flow Statement represents the £3,180,000, £695,000 and
£610,000 proceeds from the sale of the shares in Monitor, Optomed, and PSRM respectively plus the £36,000 overdraft in Monitor less the disposal costs of £273,000. The total profit on disposal of operations of £1,430,000 comprises £1,076,000 for the disposal of Monitor, £223,000 for the partial disposal of shares in Optomed and £131,000 for the fair value gain recognised in relation to the disposal of PSRM.In the prior year, the loss on disposal relates to late transaction costs and a revision to amounts
recoverable on the disposals by the Group, in 2012, of its Asset Monitoring businesses and Volumatic Limited. The £1,917,000 cash inflow related mainly to a release from escrow. Further details are provided on page 143 of the 2014 Annual Report and Accounts.
9 Disposal of operations
On 30 May 2014, the Group disposed of Monitor Elevator Products, Inc. (Monitor) from its Infrastructure Safety sector. The
total consideration was US$6,243,000 (£3,716,000), of which US$5,514,000 (£3,282,000) was received in cash at completion,
before subsequently being reduced by US$171,000 (£102,000) for the final agreed closing net asset value. The remaining
US$900,000 was retained in escrow to be released to Halma on the second anniversary of the transaction subject to any valid
warranty/indemnity claims being made by the purchaser. The Directors estimate that the entire US$900,000 held in escrow
will be received.The profit on disposal was US$1,808,000 (£1,076,000), which is net of £189,000 of cumulative foreign
exchange losses reclassified to the Income Statement and £273,000 of disposal costs. Net assets disposed were US$3,659,000
(£2,178,000). No goodwill was disposed of or impaired as a result of this transaction. The Group's partial disposal of
Optomed during the year for E876,000 (£695,000) resulted in a profit on disposal of £223,000.The Group's disposal of its
50% ownership interest in PSRM Immobilien AG (PSRM) for CHF903,000 (£610,000) resulted in a fair value gain being
recognised in the Income Statement of £131,000. This represented the excess of the fair value of the Group's interest in
the associate over its carrying value.The £4,248,000 cash inflow on disposal of operations shown in the Consolidated Cash
Flow Statement represents the £3,180,000, £695,000 and £610,000 proceeds from the sale of the shares in Monitor, Optomed,
and PSRM respectively plus the £36,000 overdraft in Monitor less the disposal costs of £273,000. The total profit on
disposal of operations of £1,430,000 comprises £1,076,000 for the disposal of Monitor, £223,000 for the partial disposal of
shares in Optomed and £131,000 for the fair value gain recognised in relation to the disposal of PSRM.In the prior year,
the loss on disposal relates to late transaction costs and a revision to amounts recoverable on the disposals by the Group,
in 2012, of its Asset Monitoring businesses and Volumatic Limited. The £1,917,000 cash inflow related mainly to a release
from escrow. Further details are provided on page 143 of the 2014 Annual Report and Accounts.
10 Notes to the Consolidated Cash Flow Statement 2015 2014
£000 £000
Reconciliation of profit from operations to net cash inflow from operating activities:
Profit on continuing operations before finance income and expense, share of results of associates and (profit)/loss on disposal of operations 137,063 143,571
Depreciation of property, plant and equipment 14,005 13,625
Amortisation of computer software 1,211 1,168
Amortisation of capitalised development costs and other intangibles 5,505 4,002
Impairment of capitalised development costs 236 -
Amortisation of acquired intangible assets 19,954 17,515
Share-based payment expense in excess of amounts paid 3,803 3,470
Additional payments to pension plans (6,560) (5,892)
Profit on sale of property, plant and equipment and computer software (590) (26)
Effects of closure to future benefit accruals of defined benefit pension plans - (4,246)
Operating cash flows before movement in working capital 174,627 173,187
Increase in inventories (1,097) (5,127)
Increase in receivables (10,656) (9,111)
Increase in payables and provisions 5,801 3,334
Revision to estimate of contingent consideration payable (620) (12,394)
Cash generated from operations 168,055 149,889
Taxation paid (30,824) (28,351)
Net cash inflow from operating activities 137,231 121,538
2015 2014
£000 £000
Analysis of cash and cash equivalents
Cash and bank balances 41,230 34,531
Overdrafts (included in current borrowings) (1,705) (1,405)
Cash and cash equivalents 39,525 33,126
At 29 March 2014 Cash flow Net cash/(debt) acquired £000 Net overdraft disposed£000 Loan notesrepaid/ (issued)£000 Exchange adjustments At 28 March 2015
£000 £000 £000 £000
Analysis of net debt
Cash and bank balances 34,531 (3,664) 9,619 - - 744 41,230
Overdrafts (1,405) (336) - 36 - - (1,705)
Cash and cash equivalents 33,126 (4,000) 9,619 36 - 744 39,525
Loan notes falling due within one year (2,731) - - - 2,731 - -
Loan notes falling due after more than one year - - - - (657) - (657)
Bank loans falling due after (104,891) (33,621) (468) - - (782) (139,762)
more than one year
Total net debt (74,496) (37,621) 9,151 36 2,074 (38) (100,894)
The net cash inflow from bank loans in 2015 comprised repayments of £35,341,000 offset by drawdowns of £68,962,000 (2014: net cash outflow comprising drawdowns of £57,791,000 offset by drawdowns of £7,498,000). The £9,151,000 net cash acquired comprised £9,619,000 cash and £468,000 of bank loans, and net overdraft disposed related to the Monitor overdraft of £36,000.The net of the above £4,000,000 cash outflow, £9,619,000 net cash acquired and £36,000 net overdraft disposed is equal to the increase in cash
and cash equivalents of £5,655,000 in the Consolidated Cash Flow Statement.
11 Non-GAAP measures The Board uses certain non-GAAP measures to help it effectively monitor the performance of the Group. These measures include Return on Total Invested Capital, Return on Capital Employed, Organic growth at constant currency, Adjusted operating profit and Adjusted operating cash flow.
11 Non-GAAP measures
The Board uses certain non-GAAP measures to help it effectively monitor the performance of the Group. These measures
include Return on Total Invested Capital, Return on Capital Employed, Organic growth at constant currency, Adjusted
operating profit and Adjusted operating cash flow.
Return on Total Invested Capital 2015 (Restated)*2014
£000 £000
Post-tax profit before adjustments** 117,912 107,564
Total shareholders' funds 548,948 486,000
Add back retirement benefit obligations 66,790 36,849
Less associated deferred tax assets (13,085) (7,372)
Cumulative amortisation of acquired intangible assets 83,958 61,324
Historical adjustments to goodwill*** 89,549 89,549
Total Invested Capital 776,160 666,350
Average Total Invested Capital 721,255 645,819
Return on Total Invested Capital (ROTIC) 16.3% 16.7%
Return on Capital Employed 2015 (Restated)*2014
£000 £000
Operating profit before adjustments**, but after share of results of associates 158,564 144,967
Computer software costs within intangible assets 2,835 2,810
Capitalised development costs within intangible assets 15,865 12,981
Other intangibles within intangible assets 450 8
Property, plant and equipment 86,303 74,417
Inventories 79,734 71,034
Trade and other receivables 156,464 135,177
Trade and other payables (102,717) (88,291)
Current provisions (11,746) (4,482)
Net tax liabilities (12,385) (11,168)
Non-current trade and other payables (3,756) (3,564)
Non-current provisions (1,549) (6,777)
Add back contingent purchase consideration 9,650 7,562
Capital Employed 219,148 189,707
Average Capital Employed 204,428 189,204
Return on Capital Employed (ROCE) 77.6% 76.6%
* The ROTIC and ROCE measures are now expressed as a percentage of the average of the current
year's and prior year's Total Invested Capital and Capital Employed respectively. Using an average as
the denominator is considered to be more representative. The 2013 Total Invested Capital and Capital
Employed balances were £625,287,000 and £188,701,000 respectively.** Adjustments include the
amortisation of acquired intangible assets; acquisition items; profit or loss on disposal of
operations; and the effects of closure to future benefit accrual of the defined benefit pension plans
net of associated costs (prior year only).*** Includes goodwill amortised prior to 3 April 2004 and
goodwill taken to reserves.
Organic growth at constant currencyOrganic growth at constant currency measures the change in revenue and profit from continuing Group operations. The effect of acquisitions made during the financial year has been equalised by adjusting the current year results for pro-rated contributions based on their revenues and profits before taxation at the dates of acquisition. The results of disposals made in the financial year have been adjusted from the prior year reported revenue and profit before taxation. The
effects of currency changes are removed through restating the current year revenue and profit before taxation at the prior year exchange rates. Organic growth at constant currency has been calculated as follows:
Organic growth at constant currency
Organic growth at constant currency measures the change in revenue and profit from continuing Group operations. The effect
of acquisitions made during the financial year has been equalised by adjusting the current year results for pro-rated
contributions based on their revenues and profits before taxation at the dates of acquisition. The results of disposals
made in the financial year have been adjusted from the prior year reported revenue and profit before taxation. The effects
of currency changes are removed through restating the current year revenue and profit before taxation at the prior year
exchange rates. Organic growth at constant currency has been calculated as follows:
Revenue Adjusted profit* before taxation
2015 2014 % growth 2015 2014 % growth
£000 £000 £000 £000
Continuing operations 726,134 676,506 153,618 140,249
Acquired and disposed revenue/profit (35,489) (6,441) (7,394) (983)
Organic growth 690,645 670,065 3.1% 146,224 139,266 5.0%
Constant currency adjustment 12,114 - 3,071 -
Organic growth at constant currency 702,759 670,065 4.9% 149,295 139,266 7.2%
* Adjustments include the amortisation of acquired intangible assets; acquisition items; profit or loss on disposal of operations; and the effects of closure to future benefit accrual of the defined benefit pension plans net of associated costs (prior year only).
Adjusted operating profit 2015 2014
£000 £000
Operating profit 137,063 143,571
Add back:
Acquisition items 1,483 (12,478)
Effects of closure to future benefit accrual of defined benefit pension plans - (3,948)
Amortisation of acquired intangible assets 19,954 17,515
Adjusted operating profit 158,500 144,660
Adjusted operating cash flow 2015 2014
£000 £000
Net cash from operating activities (note 10) 137,231 121,538
Add back:
Taxes paid 30,824 28,351
Proceeds from sale of property, plant and equipment 1,411 1,708
Less:
Purchase of property, plant and equipment (22,164) (15,838)
Purchase of computer software and other intangibles (1,403) (1,529)
Development costs capitalised (7,213) (5,196)
Adjusted operating cash flow 138,686 129,034
Cash conversion % (adjusted operating cash flow/adjusted operating profit) 87% 89%
12 Events after the balance sheet date
On 19 May 2015 the Group acquired the entire membership interest of Value Added Solutions, LLC ("VAS") for an initial cash consideration of $5,000,000, adjustable based on the closing date working capital. Additionally, a performance payment of up to $1,500,000, based upon results achieved in the period to 1 October 2016, will be paid on 1 April 2017.VAS will operate as a "bolt-on" to Diba Industries Inc., within Halma's Medical sector. Diba Industries creates innovative fluid handling solutions that are
invaluable to device OEMs, while VAS specialises in precision plastic machining, production of thermally bonded manifolds, and fluid component integrations. VAS will add complementary expertise, capabilities, and products that will allow Diba to provide broader solutions to its existing customers, as well as expand its customer base. VAS's production facility is located in Berlin, CT (USA). Due to the proximity of the acquisition date to the date of the approval of the Annual Report and Accounts, it is
impractical to provide further information.
13 Related party transactions
Trading transactions
2015 2014
£000 £000
Associated companies
Purchases from associated companies 638 524
Amounts due to associated companies 161 56
Amounts due from associated companies - 128
Other related parties
Rent charged by other related parties 113 115
Other related parties comprises one company with a Halma employee on the board and from which the Halma subsidiary rents property. All the transactions above are on an arm's length basis and on standard business terms. Remuneration of key management personnelThe remuneration of the Directors and Executive Board members, who are the key management personnel of the Group, is set out below in aggregate for each of the categories specified in IAS 24 'Related Party Disclosures'. Further information about the
remuneration of individual Directors is provided in the audited part of the Directors' Remuneration Report in the Annual Report and Accounts 2015.
2015 2014
£000 £000
Wages and salaries 5,212 4,353
Pension costs 169 130
Share-based payment charge 1,799 1,908
7,180 6,391
Cautionary noteThese Results contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the announcement. Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future
events.
This information is provided by RNS
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