REG - Hornby PLC - Half Yearly Report <Origin Href="QuoteRef">HRN.L</Origin> - Part 2

HornbyAnnouncement

21/11/2014 08:29

- Part 2: For the preceding part double click  ID:nRSU6043Xa 

comprise forward foreign exchange contracts and an
interest rate swap and have been fair valued using forward exchange rates that
are quoted in an active market. The fair value of the following financial
assets and liabilities approximate their carrying amount: Trade and other
receivables, other current financial assets, cash and cash equivalents, trade
and other payables and bank overdrafts and borrowings. 
 
                                         Level 1   Level 2     Level 3   Total       
                                         £'000     £'000       £'000     £'000       
 Assets                                                                              
 Derivatives used for hedging            -_______  147_______  -_______  147_______  
 Total assets as at 30 September 2014    -_______  147_______  -_______  147_______  
                                                                                     
 Liabilities                                                                         
 Interest rate swap                      -         -           -         -           
 Derivatives used for hedging            -_______  48_______   -_______  48_______   
 Total liabilities at 30 September 2014  -_______  48_______   -_______  48_______   
                                                                                     
                                         Level 1   Level 2     Level 3   Total       
                                         £'000     £'000       £'000     £'000       
 Assets                                                                              
 Derivatives used for hedging            -_______  39_______   -_______  39_______   
 Total assets at 31 March 2014           -_______  39_______   -_______  39_______   
                                                                                     
 Liabilities                                                                         
 Interest rate swap                      -         13          -         13          
 Derivatives used for hedging            -_______  432_______  -_______  432_______  
 Total liabilities at 31 March 2014      -_______  445_______  -_______  445_______  
                                                                                     
                                                                                     
 
 
The Group finance team reports directly to the Board and Audit committee.
Discussions of valuation processes and results are held between these teams at
least once every 6 months in line with the Group's reporting dates. 
 
9.         TAXATION 
 
The tax expense is recognised based on management's latest estimate of the
weighted average annual tax rate for each of its operating entities. Due to
the expected incidence of profits in the second half of the year in each
entity the rate for the full year is expected to be around 44%. 
 
10.       (LOSS)/EARNINGS PER SHARE 
 
(Loss)/earnings per share attributable to equity holders of the Company arises
from continuing operations as follows: 
 
                                                                                                 30 September 2014 (unaudited)  30 September 2013 (unaudited)  31 March 2014 (audited)  
 (Loss)/earnings per share from continuing operations attributable to the equity of the Company                                                                                         
 - basic                                                                                         (1.30)p                        (2.59)p                        (11.35)p                 
 - diluted- underlying                                                                           (1.30)p0.24p=======            (2.59)p(2.12)p=======          (11.35)p(3.43)p=======   
 
 
11.       DIVIDENDS 
 
No interim dividend has been declared for the interim period ended 30
September 2014 (2013 - £nil). 
 
12.       CONTINGENT LIABILITIES 
 
The Company and its subsidiary undertakings are, from time to time, parties to
legal proceedings and claims, which arise in the ordinary course of business. 
The directors do not anticipate that the outcome of these proceedings and
claims, either individually or in aggregate, will have a material adverse
effect upon the Group's financial position. 
 
13.       RELATED-PARTY TRANSACTIONS 
 
Key management compensation amounted to £1,052,000 for the six months to 30
September 2014 (2013 - £1,316,000). Key management include directors and
senior management within the organisation. 
 
                                                 30 September 2014 (unaudited)  30 September 2013 (unaudited)  31 March 2014 (audited)  
                                                 £'000                          £'000                          £'000                    
 Salaries and other short-term benefits          885                            1,034                          1,601                    
 Other pension costs                             92                             83                             156                      
 Share-based payments                            75                             199                            274                      
 Redundancy and compensation for loss of office  -_______                       -_______                       40_______                
                                                 1,052 =======                  1,316 =======                  2,071 =======            
 
 
Before appointment as Managing Director of Asia and a Director of Hornby
Hobbies Limited, a subsidiary of Hornby Plc, Bharat Ahir provided consultancy
services to the Group. 28One, not to be confused with companies of a similar
name, which is owned by Bharat continues to support the business in relation
to providing ongoing support to manage product delivery and Hornby Hobbies has
paid £17k in relation to these services to 28One since 8 August 2014. No
outstanding payments remained payable to 28One as at 30 September 2014. Hornby
Hobbies Limited continues to use these services on an ongoing basis. There are
no other related-party transactions. 
 
14.       RISKS AND UNCERTAINTIES 
 
The Board has reviewed the principal risks and uncertainties and have
concluded that the key risks continue to be UK market dependence, market
conditions, exchange rates, supply chain, product compliance and liquidity.
The disclosures on pages 13 and 14 of the Group's Annual report for the year
ended 31 March 2014 provide a description of each risk along with the
associated impact and mitigating actions. The issues surrounding supply chain,
liquidity, and market conditions are covered in more detail within the interim
management report itself. The Board will continue to focus on risk mitigation
plans to address these areas. 
 
15.       SEASONALITY 
 
Sales are subject to seasonal fluctuations, with peak demand in the October -
December quarter.  For the six months ended 30 September 2014 sales
represented 47% of the annual sales for the year ended 31 March 2014 (2013 -
39% of the annual sales for the year ended 31 March 2013). 
 
STATEMENT OF DIRECTORS' RESPONSIBILITIES 
 
The directors confirm that, to the best of their knowledge, this condensed
consolidated half-yearly report has been prepared in accordance with IAS 34 as
adopted by the European Union. The interim management report includes a fair
review of the information required by DTR 4.2.7 and DTR 4.2.8, namely: 
 
●      an indication of important events that have occurred during the first
six months and their impact on the condensed set of financial statements, and
a description of the principal risks and uncertainties for the remaining six
months of the financial year; and 
 
●      material related-party transactions in the first six months and any
material changes in the related-party transactions described in the last
annual report. 
 
The directors of Hornby Plc are listed in the Hornby Plc Annual Report for 31
March 2014.  A list of current directors is maintained on the Hornby Plc
website:  www.hornby.com. 
 
By order of the Board 
 
Richard Ames 
 
Chief Executive 
 
20 November 2014 
 
Nick Stone 
 
Finance Director 
 
20 November 2014 
 
Independent review report to Hornby PLC 
 
Report on the condensed consolidated interim financial statements 
 
Our conclusion 
 
We have reviewed the condensed consolidated interim financial statements,
defined below, in the condensed consolidated half-yearly financial report of
Hornby PLC for the six months ended 30 September 2014. Based on our review,
nothing has come to our attention that causes us to believe that the
consolidated interim financial statements are not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted
by the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Conduct Authority. 
 
This conclusion is to be read in the context of what we say in the remainder
of this report. 
 
What we have reviewed 
 
The condensed consolidated interim financial statements, which are prepared by
Hornby PLC, comprise: 
 
·      the balance sheet as at 30 September 2014; 
 
·      the statement of comprehensive income for the period then ended; 
 
·      the statement of changes in equity for the period then ended; 
 
·      the statement of cash flows for the period then ended; and 
 
·      the explanatory notes to the condensed consolidated interim financial
statements. 
 
As disclosed in note 2, the financial reporting framework that has been
applied in the preparation of the full annual financial statements of the
group is applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union. 
 
The condensed consolidated interim financial statements included in the
condensed consolidated half-yearly financial report have been prepared in
accordance with International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority. 
 
What a review of condensed consolidated financial statements involves 
 
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. 
 
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and, consequently,
does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion. 
 
We have read the other information contained in the condensed consolidated
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the
condensed consolidated interim financial statements. 
 
Responsibilities for the condensed consolidated interim financial statements
and the review 
 
Our responsibilities and those of the directors 
 
The condensed consolidated half-yearly financial report, including the
condensed consolidated interim financial statements, is the responsibility of,
and has been approved by, the directors. The directors are responsible for
preparing the condensed consolidated half-yearly financial report in
accordance with the Disclosure and Transparency Rules of the United Kingdom's
Financial Conduct Authority. 
 
Our responsibility is to express to the company a conclusion on the condensed
consolidated interim financial statements in the condensed consolidated
half-yearly financial report based on our review. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
complying with the Disclosure and Transparency Rules of the Financial Conduct
Authority and for no other purpose. We do not, in giving this conclusion,
accept or assume responsibility for any other purpose or to any other person
to whom this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing. 
 
PricewaterhouseCoopers LLP 
 
Chartered Accountants 
 
Gatwick
20 November 2014 
 
Notes: 
 
(a)   The maintenance and integrity of the Hornby PLC website is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept
no responsibility for any changes that may have occurred to the financial
statements since they were initially presented on the website. 
 
(b)   Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions. 
 
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