REG - Howden Joinery Grp - Final Results <Origin Href="QuoteRef">HWDN.L</Origin> - Part 2
25/02/2016 07:00
- Part 2: For the preceding part double click ID:nRSY0827Qa
operations Total
52 weeks to 26 December 2015 £m 52 weeks to 27 December 2014 £m 52 weeks to 26 December 2015 £m 52 weeks to 27 December 2014 £m 52 weeks to 26 December 2015 £m 52 weeks to 27 December 2014 £m
Current tax:
Current year 41.1 44.1 - - 41.1 44.1
Adjustments in respect of previous years (4.6) (1.7) - (11.2) (4.6) (12.9)
Total current tax 36.5 42.4 - (11.2) 36.5 31.2
Deferred tax:
Current year 7.3 (0.6) - - 7.3 (0.6)
Adjustments in respect of previous years 0.4 (1.7) - - 0.4 (1.7)
Total deferred tax 7.7 (2.3) - - 7.7 (2.3)
Total tax charged/(credited) in the income statement 44.2 40.1 - (11.2) 44.2 28.9
UK corporation tax is calculated at 20.25% (2014: 21.5%) of the estimated
assessable profit for the period. Tax for other countries is calculated at
the rates prevailing in the respective jurisdictions
(b) Tax relating to items credited to equity
52 weeks to 26 December 2015 £m 52 weeks to 27 December 2014 £m
Deferred tax charge/(credit) to equity on actuarial gain/loss on pension scheme 11.7 (23.9)
Deferred tax charge to other comprehensive income on pension contributions - 6.3
Current tax credit to other comprehensive income on pension contributions - (6.8)
Deferred tax charge to equity on share schemes 1.6 1.9
Current tax credit to equity on share schemes (3.8) (5.0)
9.5 (27.5)
The tax relating to items credited to equity all relates to continuing
operations.
(c) Reconciliation of the total tax charge
The total tax charge for the year can be reconciled to the result per the
income statement as follows:
52 weeks to 26 December 2015 £m 52 weeks to 27 December 2014 £m
Profit before tax:
Continuing operations 219.6 188.8
Discontinued operations - (2.1)
219.6 186.7
Tax at the UK Corporation tax rate of 20.25% (2014: 21.5%) 44.5 40.1
IFRS2 share scheme charge (0.3) 0.2
Expenses not deductible for tax purposes 1.5 2.1
Overseas losses not utilised 1.1 0.2
Change of tax rate* 0.7 0.1
Non-qualifying depreciation 0.9 0.7
Tax adjustments in respect of previous years in relation to legacy properties** - (11.1)
Other tax adjustment in respect of previous years (4.2) (3.4)
Total tax charged in the income statement 44.2 28.9
* In November 2015, Parliament approved the Finance Bill which reduces the
UK standard rate of Corporation Tax from 20% to 19% with effect from 1 April
2017 and 19% to 18% from 1 April 2020. All deferred tax assets and
liabilities have been recognised at 18% with the exception of items expected
to reverse before the rate reduces to 18%.
** See note 10 (c)
6 Earnings per share
52 weeks to 26 December 2015 52 weeks to 27 December 2014
Earnings£m Weighted averagenumberof sharesm Earnings per sharep Earnings£m Weighted average numberof sharesm Earningsper sharep
From continuing operations
Basic earnings per share 175.4 642.8 27.3 148.7 640.7 23.2
Effect of dilutive share options - 1.6 (0.1) - 6.2 (0.2)
Diluted earnings per share 175.4 644.4 27.2 148.7 646.9 23.0
From discontinued operations
Basic loss per share 9.1 640.7 1.4
Effect of dilutive share options - 6.2 -
Diluted loss per share 9.1 646.9 1.4
From continuing and discontinued operations
Basic earnings per share 175.4 642.8 27.3 157.8 640.7 24.6
Effect of dilutive share options - 1.6 (0.1) - 6.2 (0.2)
Diluted earnings per share 175.4 644.4 27.2 157.8 646.9 24.4
7 Dividends
52 weeks to 26 December 2015 £m 52 weeks to 27 December 2014£m
Amounts recognised as distributions to equity holders in the period
Interim dividend for the 52 weeks to 26 December 2015 - 2.8p/share 17.9 -
Final dividend for the 52 weeks to 27 December 2014 - 6.5p/share 42.0 -
Interim dividend for the 52 weeks to 27 December 2014 - 1.9p/share - 12.2
Final dividend for the 52 weeks to 28 December 2013 - 4.5p/share - 28.8
59.9 41.0
Dividends proposed at the end of the period (but not recognised in the period)
Proposed final dividend for the 52 weeks to 26 December 2015 - (7.1p/share) 45.2
Proposed final dividend for the 52 weeks to 27 December 2014 - (6.5p/share) 41.6
The directors propose a final dividend in respect of the 52 weeks to 26
December 2015 of 7.1p per share, payable to ordinary shareholders who are on
the register of shareholders at 20 May 2016 and payable on 17 June 2016.
Dividends have been waived indefinitely on all shares held by the Group's
employee share trusts, which have not yet been awarded to employees.
The proposed final dividend for the current period is subject to the approval
of the shareholders at the 2016 Annual General Meeting and has not been
included as a liability in these financial statements.
8 Provisions
Property£m Warranty£m French post-retirement benefits£m Businessclosure£m Total£m
At 28 December 2013 9.0 2.9 - 0.1 12.0
Additional provision in the period 3.3 3.6 0.2 - 7.1
Provision released in the period (0.2) - - (0.1) (0.3)
Utilisation of provision in the period (5.3) (2.9) - - (8.2)
At 27 December 2014 6.8 3.6 0.2 - 10.6
Additional provision in the period 2.4 4.1 - - 6.5
Provision released in the period (1.9) - - - (1.9)
Utilisation of provision in the period (1.8) (3.5) - - (5.3)
At 26 December 2015 5.5 4.2 0.2 - 9.9
Property provision
The property provision covers two main area: (i) onerous leases on any
non-trading leased properties, and
(ii) obligations to make dilapidations payments to landlords of leased
properties.
The timing of outflows from the provision is variable and is dependent on
property lease expiry dates, on opportunities to surrender leases, and on the
timing of dilapidations assessments and works.
Warranty provision
The warranty provision relates to amounts due in respect of product
warranties. As products are sold, the Group makes provision for claims under
warranties. As claims are made, the Group utilises the provision and then
uses this historical data to periodically revise the basis on which it makes
further provision.
French post-employment benefits
This provision relates to a benefit which is payable to employees in our
French subsidiaries under French law on retirement. It is a lump sum payable
on retirement, not a recurring pension. It will only be payable if any of the
eligible employees are employed by our French subsidiary immediately before
their retirement.
The provision represents our best estimate of the potential liability and it
is calculated based on several factors, mainly the age profile and salary
details of the current workforce in France, and the current rate of staff
turnover.
9 Notes to the cash flow statement
52 weeks to26 December 2015£m 52 weeks to27 December 2014£m
(a) Reconciliation of net cash
Net cash at start of period 217.7 140.5
Increase/(decrease) in cash 34.2 (7.8)
(Decrease)/increase in short term investments (25.0) 85.0
Decrease in bank loans/prepaid fees (0.9) (0.1)
Decrease in finance leases 0.1 0.1
Net cash at end of period 226.1 217.7
Represented by:
Cash at bank and in hand 166.1 131.9
Short term investments 60.0 85.0
Bank loans/prepaid loan fees - 0.9
Finance leases - (0.1)
226.1 217.7
(b) Analysis of net cash
Cash at bank and in hand £m Short term investments*£m Subtotal:Cash and cash equivalents£m Bank loans/prepaid loan fees£m Finance leases£m Netcash£m
As at 27 December 2014 131.9 85.0 216.9 0.9 (0.1) 217.7
Cash flow 34.2 (25.0) 9.2 (0.9) 0.1 8.4
As at 26 December 2015 166.1 60.0 226.1 - - 226.1
* The short term investments have a maturity of less than three months and, as
such, are considered to be cash equivalents for the purposes of the cash flow
statement.
10 Discontinued operations
There were no discontinued operations in 2015.
All discontinued operations in 2014 are discontinued exceptional items and are
analysed as follows:
Notes 52 weeks to 27 December 2014£m
Increase to discontinued property provision (a) (2.2)
Release of discontinued interest accrual (b) 0.1
Exceptional item - loss on discontinued operations (2.1)
Release of tax creditor for discontinued operations (c) 11.1
Tax credit on increase to discontinued property provision (a) 0.1
Exceptional profit after tax 9.1
(a) Increase to discontinued property provisions
During 2014, we increased the provision for our remaining legacy properties.
(b) Release of discontinued interest accrual
In periods prior to 2014, the Group had been accruing for possible interest
which would be due in relation to overdue tax in the event that we were
unsuccessful in our dispute with HMRC relating to discontinued operations (see
(c) below). Following the partial resolution of this dispute in the current
period, we now have certainty that some of this accrual will no longer be
needed. We therefore released this amount in the prior period.
(c) Release of tax creditor for discontinued operations
During 2014, we received a First Tier Tribunal judgement which gave a partial
resolution of a dispute with HMRC, regarding the tax treatment of certain
expenses relating to our legacy properties which had been incurred in prior
periods.
In prior years, we had prepared our tax computations for accounts purposes on
the basis that the disputed expense items would not be deductible for tax, and
we provided for tax on that basis. Since the judgement gave us certainty that
particular expenses may be treated as deductible for tax, we recognised a
credit of £11.1m of tax in the current period.
FINANCIAL CALENDAR
2016
Trading update 28 Apr
Half Yearly Report 21 July
Trading update 3 November
End of financial year 24 December
This information is provided by RNS
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