REG - Howden Joinery Grp - Half-year Report <Origin Href="QuoteRef">HWDN.L</Origin> - Part 2
21/07/2016 07:05
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dividends were paid in the current period or the 24 weeks to 13 June 2015.
The final dividend for the 52 weeks to 26 December 2015 (7.1p per share) was
approved at the 2016 AGM in May 2016 and was paid on 17 June 2016. The final
dividend for the 52 weeks to 27 December 2014 (6.5p per share) was approved at
the 2015 AGM in May 2015 and was paid on 19 June 2015. The interim dividend
for the 52 weeks to 26 December 2015 (2.8p per share) was paid on 20 November
2015.
(b) Proposed dividends
On 20 July 2016, the Board approved the payment of an interim dividend of 3.3p
per share, to be paid on 18 November 2016 to ordinary shareholders on the
register on 21 October 2016.
24 weeks to 11 June 2016unaudited£m 24 weeks to 13 June 2015 unaudited£m 52 weeks to26 December 2015audited£m
Proposed interim dividend for the 52 weeks to 25 December 2016 - (3.3p/share) 20.8
Proposed interim dividend for the 52 weeks to 26 December 2015 - (2.8p/share) 18.1
Proposed final dividend for the 52 weeks to 26 December 2015 - (7.1p/share) 45.2
9 Property, plant and equipment
During the period, the Group made additions to property, plant and equipment
of £27.9m (24 weeks to 14 June 2015 - £11.6m; 52 weeks to 26 December 2015 -
£42.9m).
There were no disposals of property, plant and equipment in the current
period. In the 24 weeks to 13 June 2015, it disposed of property, plant and
equipment with a net book value of £0.8m for proceeds of £nil. In the 52
weeks to 26 December 2015, it disposed of property, plant and equipment with a
net book value of £1.0m for proceeds of £0.1m.
There are non-cancellable commitments to purchase property, plant and
equipment of £21.6m at the current period end (24 weeks to 13 June 2015 -
£8.5m; 52 weeks to 26 December 2015 - £21.2m).
10 Retirement benefit obligations
(a) Total amounts (credited)/charged in respect of pensions in the period
24 weeks to 11 June 2016unaudited£m 24 weeks to13 June 2015 unaudited£m 52 weeks to26 December 2015audited£m
Charged to the income statement
Defined benefit plan - current service cost (6.9) (7.5) (16.2)
Defined benefit plan - administration costs (0.7) (0.7) (1.6)
Defined benefit plan - total operating charge (7.6) (8.2) (17.8)
Defined benefit plan - net finance charge (0.4) (1.9) (4.1)
Defined contribution plans - total operating charge (2.0) (1.7) (4.2)
Total net amount charged to profit before tax (10.0) (11.8) (26.1)
(Charged)/credited to equity
Defined benefit plan - actuarial (losses)/gains net of deferred tax (38.8) 35.4 46.7
Total (charge)/credit (48.8) 23.6 20.6
(b) Other information - defined benefit pension plan
Key assumptions used in the valuation of the plan
24 weeks to 11 June 2016unaudited% 24 weeks to13 June 2015unaudited% 52 weeks to26 December 2015audited%
Rate of increase of pensions in deferment capped at lower of CPI and 5% 1.75 2.25 2.05
Rate of CARE revaluation capped at lower of RPI and 3% 2.30 2.50 2.40
Rate of increase of pensions in payment:
pensions with increases capped at the lower of CPI and 5% 2.20 2.55 2.50
pensions with increases capped at the lower of CPI and 5%, with a 3% minimum 3.45 3.55 3.65
pensions with increases capped at the lower of RPI and 2.5% 2.15 2.30 2.25
Rate of increase in salaries 4.15 4.55 4.50
Inflation assumption - RPI 3.15 3.55 3.50
Inflation assumption - CPI 2.15 2.55 2.50
Discount rate 3.20 3.70 3.75
Life expectancy (yrs): pensioner aged 65 - male 87.8 87.7 87.8
pensioner aged 65 - female 89.3 89.2 89.3
non-pensioner aged 45 - male 89.4 89.3 89.4
non-pensioner aged 45 - female 92.2 92.1 92.2
Balance sheet
Movements in the deficit during the period are as follows:
24 weeks to11 June 2016 unaudited£m 24 weeks to13 June 2015unaudited£m 52 weeks to26 December 2015audited£m
Deficit at start of period (49.2) (142.6) (142.6)
Current service cost (6.9) (7.5) (16.2)
Administration cost (0.7) (0.7) (1.6)
Employer contributions 19.2 29.0 56.9
Other finance charge (0.4) (1.9) (4.1)
Actuarial (losses)/gains gross of deferred tax (48.5) 44.2 58.4
Deficit at end of period (86.5) (79.5) (49.2)
Statement of comprehensive income
Amounts taken to equity via the statement of comprehensive income in respect
of the Group's defined benefit plan are shown below.
24 weeks to11 June 2016 unaudited£m 24 weeks to13 June 2015unaudited£m 52 weeks to26 December 2015audited£m
Actuarial gain/(losses) on plan assets 29.8 10.8 (6.1)
Actuarial (losses)/gains on plan liabilities (78.3) 33.4 64.5
Total actuarial (losses)/gains before associated deferred tax (48.5) 44.2 58.4
11 Provisions
Property £m Warranty£m French post-retirement benefits£m Total£m
At 26 December 2015 - audited 5.5 4.2 0.2 9.9
Created in the period 2.7 1.5 - 4.2
Utilised in the period (3.5) (1.8) - (5.3)
Released in the period (0.2) - - (0.2)
At 11 June 2016 - unaudited 4.5 3.9 0.2 8.6
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.
There is a discussion of the main sources of estimation and uncertainty which
apply to the provision at Note 3 to the Group's 2015 Annual Report and
Accounts. The amount of the expected future cash flows has been adjusted to
reflect the expected range of possibilities.
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 data to periodically revise the basis on which it makes further
provision.
12 Related party transactions
There have been no changes to related party arrangements or transactions as
reported in the 2015 Annual Report and Accounts.
Transactions between Group companies, which are related parties, have been
eliminated on consolidation and are therefore not disclosed. Other
transactions which fall to be treated as related party transactions are: those
relating to the remuneration of key management personnel, which are not
disclosed in the Half-Yearly Report and which will be disclosed in the Group's
next Annual Report and Accounts; and transactions between the Group and the
Group's defined benefit pension plan, which are disclosed in Note 10.
13 Notes to the cash flow statement
(a) Reconciliation of movement in net cash
24 weeks to11 June 2016 unaudited£m 24 weeks to13 June 2015unaudited£m 52 weeks to26 December 2015audited£m
Net cash at start of period 226.1 217.7 217.7
Net (decrease)/increase in cash at bank and in hand (8.4) 45.8 34.2
Decrease in short term investments (35.0) (40.0) (25.0)
Decrease in bank loans/prepaid fees - (0.2) (0.9)
Decrease in finance leases - - 0.1
Net cash at end of period 182.7 223.3 226.1
Represented by:
Cash at bank and in hand 157.7 177.7 166.1
Short-term investments 25.0 45.0 60.0
Bank loans/prepaid loan fees - 0.7 -
Finance leases - (0.1) -
182.7 223.3 226.1
(b) Analysis of net cash
Cash atbank and in hand£m Short-term investments£m Cash and cash equivalents/Net cash£m
At 26 December 2015 - audited 166.1 60.0 226.1
Cash flow (8.4) (35.0) (43.4)
At 11 June 2016 - unaudited 157.7 25.0 182.7
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.
INDEPENDENT REVIEW REPORT TO HOWDEN JOINERY GROUP PLC
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly report for the 24 week period ended 11 June
2016, which comprises the consolidated income statement, the consolidated
statement of comprehensive income, the consolidated balance sheet, the
consolidated statement of changes in equity, the consolidated cash flow
statement and related notes 1 to 13. We have read the other information
contained in the half-yearly report and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.
This report is made solely to the Company 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. Our work has been undertaken so that
we might state to the Company those matters we are required to state to it in
an independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the Company for our review work, for this report or for the conclusions
we have formed.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by the
directors. The directors are responsible for preparing the half-yearly report
in accordance with the Disclosure and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
As disclosed in Note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly report has
been prepared in accordance with International Accounting Standard 34,
"Interim Financial Reporting," as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly report based on our review.
Scope of Review
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 inquiries, 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.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
report for the 24 week period ended 11 June 2016 is 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.
Deloitte LLP
Chartered Accountants and Statutory Auditor, London
20 July 2016
FINANCIAL CALENDAR
2016
Trading update 3 November 2016
End of financial year 24 December 2016
2017
2016 Preliminary Results 23 February 2017
Trading update 27 April 2017
Half-Yearly Report 20 July 2017
Trading update 2 November 2017
End of financial year (53-weeks) 30 December 2017
This information is provided by RNS
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