REG - Hornby PLC - Half Yearly Report <Origin Href="QuoteRef">HRN.L</Origin> - Part 2
08/12/2015 07:10
- Part 2: For the preceding part double click ID:nRSH2792Ia
Depreciation, amortisation and impairment (1,990)______
Closing net book amount 30 September 2014 22,553 =======
2015(unaudited) 2014(unaudited)
CAPITAL COMMITMENTS £'000 £'000
At 30 September commitments were:
Contracted for but not provided for 1,250 ======= 1,822 =======
The commitments relate to the acquisition of tooling as part of property,
plant and equipment.
6. SHARE CAPITAL
At 31 March 2015 the Group had 39,164,100 ordinary 1p shares in issue with
nominal value £391,641 and following the move to the Alternative Investment
Market and simultaneous new ordinary share issue on 12 August 2015 has, at 30
September 2015, 54,953,574 ordinary 1p shares in issue with a nominal value of
£549,535 (2014 - £391,641).
No employee share options were exercised during the first half to 30 September
2015 (2014 - £nil).
7. BORROWINGS
30 September 2015 (unaudited) 30 September 2014 (unaudited) 31 March 2015(audited)
£'000 £'000 £'000
CURRENT:
Bank overdrafts 6,008 11,075 7,698
Bank loans 46_______ 51_______ 49_______
6,054 ======= 11,126 ======= 7,747 =======
NON-CURRENT:
Bank loans 144 202 163
Finance lease obligations -_______ -_______ -_______
144 ======= 202 ======= 163 =======
At 30 September 2015 the UK had a £10,000,000 revolving credit facility
expiring June 2019 (2014 -£13,000,000) that attracts interest at 2.9% above
Libor. (2014 - 2.5% above Libor).
In the period to 30 September 2015 loan repayments were £21,000 (2014 -
£1,543,000).
The drawdown amount on the revolving credit facility amounted to £8,000,000
(2014 - £10,250,000) and is included within net bank overdrafts above.
The revolving credit facility is secured by a fixed charge over the UK's
freehold property in Margate. The Spanish bank loan is secured over our
freehold property in Spain.
8. FINANCIAL INSTRUMENTS
The following tables present the Group's assets and liabilities that are
measured at fair value at 30 September 2015 and 31 March 2015. The table
analyses financial instruments carried at fair value, by valuation method. The
different levels have been defined as follows:
- Quoted prices (unadjusted) in active markets for identical assets or
liabilities (Level 1).
- Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices) (Level 2).
- Inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs) (Level 3).
There were no transfers or reclassifications between levels within the period.
Level 2 hedging derivatives 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.
Fair values are determined by a process involving discussions between the
Group finance team and the Audit Committee which occur 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
estimated full year forecast effective tax rate determined for each territory.
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 in line with the
interim rate.
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Assets
Derivatives used for hedging -_______ 196_______ -_______ 196_______
Total assets as at 30 September 2015 -_______ 196_______ -_______ 196_______
Liabilities
Derivatives used for hedging -_______ 91_______ -_______ 91_______
Total liabilities at 30 September 2015 -_______ 91_______ -_______ 91_______
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Assets
Derivatives used for hedging -_______ 519_______ -_______ 519_______
Total assets at 31 March 2015 -_______ 519_______ -_______ 519_______
Liabilities
Derivatives used for hedging -_______ 24_______ -_______ 24_______
Total liabilities at 31 March 2015 -_______ 24_______ -_______ 24_______
10. (LOSS)/EARNINGS PER SHARE
(Loss)/earnings per share attributable to equity holders of the Company arises
from continuing operations as follows:
30 September 2015 (unaudited) 30 September 2014 (unaudited) 31 March 2015 (audited)
(Loss)/earnings per share from continuing operations attributable to the equity of the Company
- basic (6.30)p (1.30)p (0.31)p
- diluted- underlying (6.30)p(4.81)p======= (1.30)p0.24p======= (0.31)p(3.38)p=======
11. DIVIDENDS
No interim dividend has been declared for the interim period ended 30
September 2015 (2014 - £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 £1,573,000 for the six months to 30
September 2015 (2014 - £1,052,000). Key management include directors and
senior management within the organisation. For the period to 30 September 2015
there was an increase in the salaries compared to the same period last year
because of the handover period and timing of new director appointments year on
year.
30 September 2015 (unaudited) 30 September 2014 (unaudited) 31 March 2015 (audited)
£'000 £'000 £'000
Salaries and other short-term benefits 1,213 885 1,799
Other pension costs 166 92 171
Share-based payments 194 75 205
_______ _______ _______
1,573======= 1,052======= 2,175=======
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 £37,000 in relation to these services to 28One since 1 April 2015. No
outstanding payments remained payable to 28One as at 30 September 2015. 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 12 and 13 of the Group's Annual report for the year
ended 31 March 2015 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 2015 sales
represented 38% of the annual sales for the year ended 31 March 2015 (2014 -
47% of the annual sales for the year ended 31 March 2014).
By order of the Board
Richard Ames
Chief Executive
Steve Cooke
Group Finance Director
8 December 2015
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Hornby
See all newsREG - Hornby PLC - Directorate Change
AnnouncementREG - Hornby PLC - Trading Statement
AnnouncementREG - Hornby PLC Frasers Group PLC - Holding(s) in Company
AnnouncementREG - Hornby PLC - Mike Ashley and Hornby PLC
AnnouncementREG - Hornby PLC - Hornby PLC Acquires The Corgi Model Club
Announcement