REG - AVEVA Group PLC - Preliminary Results <Origin Href="QuoteRef">AVV.L</Origin> <Origin Href="QuoteRef">LAND.L</Origin> - Part 2
15/07/2015 18:13
- Part 2: For the preceding part double click ID:nRSS5690Na
protection of these tools.
The protection of the Group's proprietary software products is achieved by
licensing rights to use the application, rather than selling or licensing the
computer source code. The Group uses third party technology to encrypt,
protect and restrict access to its products. Access limitations and rights are
also defined within the terms of the software licence agreement. The Group
seeks to ensure that its intellectual property rights are appropriately
protected by law and seeks to vigorously assert its proprietary rights
wherever possible.
Research & Development
The Group makes substantial investments in Research & Development in enhancing
existing products and introducing new products and must effectively appraise
its investment decisions and ensure that we continue to provide class-leading
solutions that meet the needs of our markets.
Our software products are complex and new products or enhancements may contain
undetected errors, failures, performance problems or defects which may impact
our strong reputation with our customers.
AVEVA continually reviews the alignment of the activities of our Research &
Development teams to ensure that they remain focused on areas that will meet
the demands of our customers and deliver appropriate financial returns. This
process is managed by developing a product roadmap that identifies the
schedule for new products and the enhancements that will be made to successive
versions of existing products. Products are extensively tested prior to
commercial launch.
International operations
The Group has offices in 30 countries and must determine how best to utilise
its resources across these diverse markets. Where necessary, the business must
adapt its market approach to best capitalise on local market opportunities,
particularly in the strategically key growth economies.
In addition, the Group is required to comply with the local laws, regulations
and tax legislation in each of these jurisdictions. Significant changes in
these laws and regulations or failure to comply with them could lead to
additional liabilities and penalties.
The Group manages its overseas operations by employing locally qualified
personnel who are able to provide expertise in the appropriate language and an
understanding of local culture, custom and practice. Local management is
supported by local professional advisers and further oversight is maintained
from the Group's corporate legal and finance functions.
Recruitment and retention of employees
AVEVA's success has been built on the quality and reputation of its products
and services, which rely almost entirely on the quality of the people
developing and delivering them. Managing this pool of highly skilled and
motivated individuals across all disciplines and geographies remains key to
our ongoing success.
The Group endeavours to ensure that employees are motivated in their work and
there are regular appraisals, with staff encouraged to develop their skills.
Annually there is a Group-wide salary review that rewards strong performance
and ensures salaries remain competitive. Commission and bonus schemes help to
ensure the success of the Group and individual achievement is appropriately
rewarded.
Foreign exchange risk
Exposure to foreign currency gains and losses can be material to the Group,
with more than 80% of the Group's revenue denominated in a currency other than
sterling, of which our two largest are US dollar and Euro.
The overseas subsidiaries predominantly trade in their own local currencies,
which acts as a partial natural hedge against currency movements. In addition,
the Group enters into forward foreign currency contracts to manage the risk
where material and practical. The Group limits its hedging of revenue to US
dollar, Euro, Japanese yen and its hedging of costs to Swedish krona and
Indian rupee.
Consolidated income statement
for the year ended 31 March 2015
Notes 2015 2014£000
£000
Revenue 3, 4 208,686 237,336
Cost of sales (15,538) (17,378)
Gross profit 193,148 219,958
Operating expenses
Research & development costs (32,696) (38,278)
Selling and distribution expenses (87,863) (92,967)
Administrative expenses (18,036) (20,186)
Total operating expenses (138,595) (151,431)
Profit from operations 54,553 68,527
Finance revenue 765 1,208
Finance expense (456) (746)
Analysed as:
Adjusted profit before tax 62,098 78,257
Amortisation of intangibles (excluding other software) (4,707) (4,677)
Share-based payments 441 (2,317)
(Loss)/gain on fair value of forward foreign exchange contracts (980) 1,121
Exceptional items 5 (1,990) (3,395)
Profit before tax 54,862 68,989
Income tax expense 6 (13,303) (17,978)
Profit for the year attributable to equity holders of the parent 41,559 51,011
Earnings per share (pence)
- basic 8 65.07 78.12
- diluted 8 64.92 77.99
Adjusted earnings per share (pence)
- basic 8 74.51 89.05
- diluted 8 74.34 88.90
All activities relate to continuing activities.
The accompanying notes are an integral part of this Consolidated income
statement.
Consolidated statement of comprehensive income
for the year ended 31 March 2015
Notes 2015 2014£000
£000
Profit for the year 41,559 51,011
Items that may be reclassified to profit or loss in subsequent periods:
Exchange differences arising on translation of foreign operations (9,393) (6,933)
Items that will not be reclassified to profit or loss in subsequent periods:
Actuarial (loss)/gain on retirement benefit obligations 12 (11,496) 5,672
Tax on items relating to components of other comprehensive income 6(a) 2,657 (1,275)
Total of items that will not be reclassified to profit or loss in subsequent periods (8,839) 4,397
Total comprehensive income for the year, net of tax 23,327 48,475
The accompanying notes are an integral part of this Consolidated statement of
comprehensive income.
Consolidated balance sheet
31 March 2015
Notes 2015 2014
£000 £000
Non-current assets
Goodwill 50,589 38,474
Other intangible assets 27,506 21,540
Property, plant and equipment 7,595 8,395
Deferred tax assets 3,800 4,131
Other receivables 9 1,440 1,498
90,930 74,038
Current assets
Trade and other receivables 9 96,468 83,596
Financial assets - 547
Treasury deposits 10 45,248 40,238
Cash and cash equivalents 10 58,519 77,309
Current tax assets 2,195 2,162
202,430 203,852
Total assets 293,360 277,890
Equity
Issued share capital 2,274 2,271
Share premium 27,288 27,288
Other reserves 1,655 10,589
Retained earnings 158,713 144,829
Total equity 189,930 184,977
Current liabilities
Trade and other payables 11 81,613 72,954
Financial liabilities 432 -
Current tax liabilities 5,718 9,108
87,763 82,062
Non-current liabilities
Deferred tax liabilities 1,480 2,003
Retirement benefit obligations 12 14,187 8,848
15,667 10,851
Total equity and liabilities 293,360 277,890
The accompanying notes are an integral part of this Consolidated balance
sheet.
The financial statements were approved by the Board of Directors and
authorised for issue on 19 May 2015. They were signed on its behalf by:
Philip AikenChairman Richard LongdonChief Executive Company number 2937296
Consolidated statement of changes in shareholders' equity
31 March 2015
Other reserves
Notes Share Share premium£000 Merger reserve£000 Cumulative translation adjustments £000 Treasury shares Total other reserves£000 Retainedearnings£000 Totalequity£000
capital £000
£000
At 1 April 2013 2,269 27,288 3,921 15,042 (1,251) 17,712 204,337 251,606
Profit for the year - - - - - - 51,011 51,011
Other comprehensive income - - - (6,933) - (6,933) 4,397 (2,536)
Total comprehensive income - - - (6,933) - (6,933) 55,408 48,475
Issue of share capital 2 - - - - - - 2
Share-based payments - - - - - - 2,317 2,317
Tax arising on share options - - - - - - (255) (255)
Investment in own shares - - - - (717) (717) - (717)
Cost of employee benefit trust shares issued to employees - - - - 527 527 (527) -
Equity dividends 7 - - - - - - (116,451) (116,451)
At 31 March 2014 2,271 27,288 3,921 8,109 (1,441) 10,589 144,829 184,977
Profit for the period - - - - - - 41,559 41,559
Other comprehensive income - - - (9,393) - (9,393) (8,839) (18,232)
Total comprehensive income - - - (9,393) - (9,393) 32,720 23,327
Issue of share capital 3 - - - - - - 3
Share-based payments - - - - - - (441) (441)
Tax arising on share options - - - - - - (73) (73)
Investment in own shares - - - - (305) (305) - (305)
Cost of employee benefit trust shares issued to employees - - - - 764 764 (764) -
Equity dividends 7 - - - - - - (17,558) (17,558)
At 31 March 2015 2,274 27,288 3,921 (1,284) (982) 1,655 158,713 189,930
The accompanying notes are an integral part of this Consolidated statement of
changes in shareholders' equity.
Consolidated cash flow statement
for the year ended 31March 2015
Notes 2015 2014£000
£000
Cash flows from operating activities
Profit for the year 41,559 51,011
Income tax 6(a) 13,303 17,978
Net finance revenue (309) (462)
Amortisation of intangible assets 5,335 4,879
Depreciation of property, plant and equipment 2,914 2,932
(Gain)/loss on disposal of property, plant and equipment 191 (83)
Share-based payments (441) 2,317
Difference between pension contributions paid and amounts charged to operating profit (6,565) (2,993)
Research & development expenditure tax credit (930) (875)
Changes in working capital:
Trade and other receivables (11,752) (3,221)
Trade and other payables 852 (159)
Changes to fair value of forward foreign exchange contracts 980 (1,121)
Cash generated from operating activities before tax 45,137 70,203
Income taxes paid (14,231) (18,217)
Net cash generated from operating activities 30,906 51,986
Cash flows from investing activities
Purchase of property, plant and equipment (2,571) (3,118)
Purchase of intangible assets (522) (2,119)
Acquisition of subsidiaries and business undertakings, net of cash acquired (25,651) -
Proceeds from disposal of property, plant and equipment 345 427
Interest received 765 1,208
Maturity/(purchase) of treasury deposits (net) 10 (5,010) 95,847
Net cash flows from/used in investing activities (32,644) 92,245
Cash flows from financing activities
Interest paid (73) (98)
Purchase of own shares (305) (717)
Proceeds from the issue of shares 3 2
Dividends paid to equity holders of the parent 7 (17,558) (116,451)
Net cash flows used in financing activities (17,933) (117,264)
Net (decrease)/increase in cash and cash equivalents (19,671) 26,967
Net foreign exchange difference 881 (3,930)
Opening cash and cash equivalents 10 77,309 54,272
Closing cash and cash equivalents 10 58,519 77,309
The accompanying notes are an integral part of this Consolidated cash flow
statement.
1. Basis of preparation
The Group is required to prepare its Consolidated financial statements in
accordance with IFRS as adopted by the European Union. For the purposes of
this document the term IFRS includes International Accounting Standards.
The preliminary announcement covers the period 1 April 2014 to 31 March 2015
and was approved by the Board on 19 May 2015.
The financial information contained in this preliminary announcement of
audited results does not constitute the Group's statutory accounts for the
years ended 31 March 2015 or 31 March 2014. The accounts for the year ended 31
March 2014 have been delivered to the Registrar of Companies. The statutory
accounts for the years ended 31 March 2015 and 2014 have been reported on by
the Company's auditors; the reports on these accounts were unqualified, did
not draw attention to any matters by way of emphasis and did not contain any
statement under section 498(2) or (3) of the Companies Act 2006 or equivalent
preceding legislation.
The statutory accounts for the year ended 31 March 2015 are expected to be
posted to shareholders in due course and will be delivered to the Registrar of
Companies after they have been laid before the shareholders in a general
meeting on 9 July 2015. Copies will be available from the registered office of
the Company, High Cross, Madingley Road, Cambridge CB3 0HB and can be accessed
on the AVEVA website, www.aveva.com. The registered number of AVEVA Group plc
is 2937296.
The Group presents a non-GAAP performance measure on the face of the
Consolidated income statement. The Directors believe that this alternative
measure of profit provides a reliable and consistent measure of the Group's
underlying performance. The face of the Consolidated income statement presents
adjusted profit before tax and reconciles this to profit before tax as
required to be presented under the applicable accounting standards. Adjusted
earnings per share is calculated having adjusted profit after tax for the same
items and their tax effect. The term adjusted profit is not defined under IFRS
and may not be comparable with similarly titled profit measures reported by
other companies. It is not intended to be a substitute for, or superior to,
GAAP measures of profit.
2. Accounting policies
The preliminary statement has been prepared on a consistent basis with the
accounting policies set out in the last published financial statements for the
year ended 31 March 2014. New standards and interpretations which came into
force during the year did not have a significant impact on the Group's
financial statements.
3 REVENUE
An analysis of the Group's revenue is as follows:
2015 2014£000
£000
Annual fees 60,724 57,084
Rental licence fees 97,489 109,936
Total recurring revenue 158,213 167,020
Initial licence fees 31,122 48,394
Training and services 19,351 21,922
Total revenue 208,686 237,336
Finance revenue 765 1,208
209,451 238,544
Services consist of consultancy, implementation services and training fees.
Included within revenue for the year ended 31 March 2015 are annual fees of
£534,000, rental fees of £296,000 and services of £321,000 related to the
acquired business of 8over8 Limited.
4 Segment information
During the year, the Group was organised into two lines of business, being
Engineering & Design Systems and Enterprise Solutions, which are considered to
be the two reportable segments for the Group. The products of each of the
lines of business are taken to market by a shared sales force that is itself
organised into three geographical sales divisions: Asia Pacific; Americas; and
Europe, Middle East and Africa (EMEA).
The Executive Board monitors the operating results of the lines of business
for the purposes of making decisions about performance assessment and resource
allocation. Performance is evaluated based on adjusted profit contribution
using the same accounting policies as adopted for the Group's financial
statements. There is no inter-segment revenue. Balance sheet information is
not included in the information provided to the Executive Board. Support
functions such as head office departments are controlled and monitored
centrally.
Year ended 31 March 2015 Engineering & Design Systems£000 Enterprise Solutions £000 Total
£000
Income statement
Revenue
Annual fees 54,662 6,062 60,724
Rental licence fees 92,730 4,759 97,489
Initial licence fees 27,376 3,746 31,122
Training and services 7,925 11,426 19,351
Segment revenue 182,693 25,993 208,686
Operating costs (45,660) (26,637) (72,297)
Segment profit/(loss) contribution 137,033 (644) 136,389
Reconciliation of segment profit contribution to profit before tax
Shared selling and distribution expenses (58,236)
Other shared operating expenses (16,364)
Net finance revenue 309
Adjusted profit before tax 62,098
Exceptional items and other normalised adjustments# (7,236)
Profit before tax 54,862
# Normalised adjustments include amortisation of intangible assets
(excluding other software), share-based payments and (losses)/gains on fair
value of forward foreign exchange contracts.
Enterprise Solutions includes revenue of £1,151,000 and contribution of
£21,000 relating to the acquired business of 8over8 Limited.
4 Segment information continued
Year ended 31 March 2014 Engineering & Design Systems£000 Enterprise Solutions £000 Total£000
Income statement
Revenue
Annual fees 51,382 5,702 57,084
Rental licence fees 105,489 4,447 109,936
Initial licence fees 45,525 2,869 48,394
Training and services 9,090 12,832 21,922
Segment revenue 211,486 25,850 237,336
Operating costs (48,457) (29,233) (77,690)
Segment profit contribution 163,029 (3,383) 159,646
Reconciliation of segment profit contribution to profit before tax
Shared selling and distribution expenses (58,016)
Other shared operating expenses (23,835)
Net finance revenue 462
Adjusted profit before tax 78,257
Exceptional items and other normalised adjustments# (9,268)
Profit before tax 68,989
Analysis of revenue by geographical location
Year ended 31 March 2015
Asia Pacific £000 EMEA Americas £000 Total
£000 £000
Revenue
Annual fees 25,137 29,838 5,749 60,724
Rental licence fees 21,625 51,365 24,499 97,489
Initial licence fees 16,855 10,537 3,730 31,122
Training and services 3,992 12,034 3,325 19,351
Total revenue 67,609 103,774 37,303 208,686
Year ended 31 March 2014
Asia Pacific £000 EMEA Americas £000 Total
£000 £000
Revenue
Annual fees 21,013 30,400 5,671 57,084
Rental licence fees 30,036 53,047 26,853 109,936
Initial licence fees 32,364 13,135 2,895 48,394
Training and services 3,443 15,454 3,025 21,922
Total revenue 86,856 112,036 38,444 237,336
Other segmental disclosures
The Company's country of domicile is the UK. Revenue attributed to the UK and
all foreign countries amounted to £16,038,000 and £192,648,000 (2014 -
£20,667,000 and £216,669,000) respectively. In 2013/14 South Korea accounted
4 Segment information continued
for 16% of the Group's total revenue. No individual country accounted for more
than 10% of the Group's total revenue. Revenue is allocated to countries on
the basis of the location of the customer.
Non-current assets (excluding deferred tax assets) held in the UK and all
foreign countries amounted to £46,594,000 and £40,536,000 (2014 - £22,723,000
and £47,184,000) respectively. There are no material non-current assets
located in an individual country outside of the UK.
No single external customer accounted for 10% or more of the Group's total
revenue (2014 - none).
Further information concerning revenue by type of product and service is
disclosed in note 3.
5 Exceptional items
During the year the Group incurred exceptional costs of £1,990,000 (2014 -
£3,395,000), relating to acquisition and integration activities of £371,000
(2014 - £102,000), exceptional restructuring costs of £851,000 (2014 -
£1,762,000) and a provision for underpaid sales taxes in an overseas location
of £768,000 (2014 - £1,531,000).
The acquisition and integration fees paid during the year, relate to fees paid
to professional advisers for legal and due diligence advice related to the
acquisition of 8over8 Limited with prior year costs related to Bocad.
The exceptional restructuring costs incurred during 2014/15 relate to the
accrued redundancy and related costs in connection to the rationalisation of
offices and reduction in headcount in specific areas of the business.
The Group has provided for a potential underpaid sales tax liability in
respect of prior periods, related to the local sales of one of the Group's
subsidiary companies. The provision includes an estimate of the underpaid tax
as well as related interest for late payment.
6 Income tax expense
a) Tax on profit
The major components of income tax expense for the years ended 31 March 2015
and 2014 are as follows:
2015 2014£000
£000
Tax charged in Consolidated income statement
Current tax
UK corporation tax 5,362 8,440
Adjustments in respect of prior periods 3 (503)
5,365 7,937
Foreign tax 6,667 9,962
Adjustments in respect of prior periods 553 267
7,220 10,229
Total current tax 12,585 18,166
Deferred tax
Origination and reversal of temporary differences 785 (246)
Adjustment in respect of prior periods (67) 58
Total deferred tax 718 (188)
Total income tax expense reported in Consolidated income statement 13,303 17,978
2015 2014£000
£000
Tax relating to items (charged)/credited directly to Consolidated statement of comprehensive income
Deferred tax on retranslation of intangible assets 380 236
Deferred tax on actuarial remeasurements on retirement benefit obligation 1,085 (1,511)
Current tax on pension contributions 1,192 -
Tax credit reported in Consolidated statement of comprehensive income 2,657 (1,275)
b) Reconciliation of the total tax charge
The differences between the total tax charge shown above and the amount
calculated by applying the standard rate of UK corporation tax to the profit
before tax are as follows:
2015 2014£000
£000
Tax on Group profit before tax at standard UK corporation tax rate of 21% (2014 - 23%) 11,521 15,866
Effects of:
- expenses not deductible for tax purposes 646 823
- irrecoverable withholding tax 132 256
- movement on unprovided deferred tax balances 387 933
- change in UK tax rate for deferred tax balances - (147)
- differing tax rates on overseas earnings 128 425
- adjustments in respect of prior years 489 (178)
Income tax expense reported in Consolidated income statement 13,303 17,978
7 Dividends paid and proposed on equity shares
2015 2014
£000 £000
Declared and paid during the year
Interim 2014/15 dividend paid of 5.5 pence (2013/14 - 5.0 pence) per ordinary share 3,515 3,178
Final 2013/14 dividend paid of 22.0 pence (2012/13 - 19.5 pence) per ordinary share 14,043 13,261
Special dividend paid of 147.0 pence per share - 100,012
17,558 116,451
Proposed for approval by shareholders at the Annual General Meeting
Final proposed dividend 2014/15 of 25.0 pence (2013/14 - 22.0 pence) per ordinary share 15,976 14,052
The proposed final dividend is subject to approval by shareholders at the
Annual General Meeting on 9 July 2015 and has not been included as a liability
in these financial statements. If approved at the Annual General Meeting, the
final dividend will be paid on 3 August 2015 to shareholders on the register
at the close of business on 3 July 2015.
8 Earnings per share
2015 2014Pence
Pence
Earnings per share for the year:
- basic 65.07 78.12
- diluted 64.92 77.99
Adjusted earnings per share for the year:
- basic 74.51 89.05
- diluted 74.34 88.90
2015 2014
Number Number
Weighted average number of ordinary shares for basic earnings per share 63,872,070 65,297,504
Effect of dilution: employee share options 146,272 112,020
Weighted average number of ordinary shares adjusted for the effect of dilution 64,018,342 65,409,524
The calculations of basic and diluted earnings per share are based on the net
profit attributable to equity holders of the parent for the year of
£41,559,000 (2014 - £51,011,000). Basic earnings per share amounts are
calculated by dividing the net profit attributable to equity holders of the
parent by the weighted average number of ordinary shares outstanding during
the year. Diluted earnings per share amounts are calculated by dividing the
net profit attributable to equity holders of the parent by the weighted
average number of ordinary shares outstanding during the year plus the
weighted average number of ordinary shares that would be issued on the
conversion of all the potentially dilutive share options into ordinary
shares.
Details of the calculation of adjusted earnings per share are set out below:
2015 2014 £000
£000
Profit after tax for the year 41,559 51,011
Intangible amortisation (excluding software) 4,707 4,677
Share-based payments (441) 2,317
Loss/(gain) on fair value of forward foreign exchange contracts 980 (1,121)
Exceptional items 1,990 3,395
Tax effect on exceptional items (134) (781)
Tax effect on other normalised items (1,067) (1,351)
Adjusted profit after tax 47,594 58,147
The denominators used are the same as those detailed above for both basic and
diluted earnings per share.
The adjustment made to profit after tax in calculating adjusted basic and
diluted earnings per share has been adjusted for the tax effects of the items
adjusted.
The Directors believe that adjusted earnings per share is a more
representative presentation of the underlying performance of the business.
9 Trade and other receivables
2015 2014
£000 £000
Current
Amounts falling due within one year:
Trade receivables 88,618 77,762
Prepayments and other receivables 6,590 5,402
Accrued income 1,260 432
96,468 83,596
Trade receivables are non-interest bearing and generally on terms of between
30 and 90 days. The Directors consider that the carrying amount of trade and
other receivables approximates their fair value.
2015 2014
£000 £000
Non-current
Prepayments and other receivables 1,440 1,498
Non-current prepayments and other receivables include rental deposits for
operating leases.
As at 31 March 2015 the provision for impairment of receivables was £5,636,000
(2014 - £5,161,000) and an analysis of the movements during the year was as
follows:
£000
At 1 April 2013 4,771
Charge for the year, net of amounts reversed 1,302
Utilised (399)
Exchange adjustment (513)
At 31 March 2014 5,161
Arising from business combination 1,011
Charge for the year, net of amounts reversed 3,327
Utilised (3,612)
Exchange adjustment (251)
As at 31 March 2015 5,636
As at 31 March, the ageing analysis of trade receivables (net of provision for
impairment) was as follows:
Past due not impaired
Total Neither past due nor impaired£000 Less than Four to eight months£000 Eight to twelve More than twelve
£000 four months£000 months£000 months
£000
2015 88,618 65,058 20,712 1,650 1,176 22
2014 77,762 53,304 20,264 3,322 780 92
10 Cash and cash equivalents and treasury deposits
2015 2014
£000 £000
Cash at bank and in hand 50,635 64,293
Short-term deposits 7,884 13,016
Net cash and cash equivalents per cash flow 58,519 77,309
Treasury deposits 45,248 40,238
103,767 117,547
Treasury deposits represent bank deposits with an original maturity of over
three months.
Short-term deposits are made for varying periods of between one day and three
months, depending on the immediate cash requirements of the Group, and earn
interest at the respective short-term deposit rates.
The fair value of cash and cash equivalents and treasury deposits is
£103,767,000 (2014 - £117,547,000).
11 Trade and other payables
2015 2014
£000 £000
Current
Trade payables 3,251 4,116
Social security, employee taxes and sales taxes 14,500 11,347
Accruals and other payables 15,232 20,521
Deferred revenue 48,213 36,490
Deferred consideration 417 480
81,613 72,954
Trade payables are non-interest bearing and are normally settled on terms of
between 30 and 60 days. Social security, employee taxes and sales taxes are
non-interest bearing and are normally settled on terms of between 19 and 30
days. The Directors consider that the carrying amount of trade and other
payables approximates their fair value.
12 Retirement benefit obligations
The movement on the provision for retirement benefit obligations was as
follows:
UKdefined benefit scheme£000 German defined benefit schemes£000 SouthKorean severancepay Total
£000 £000
At 31 March 2013 13,214 1,945 1,800 16,959
Current service cost 1,628 55 312 1,995
Net interest on pension scheme liabilities 562 36 63 661
Actuarial remeasurements (5,573) 10 (109) (5,672)
Employer contributions (3,978) (951) (60) (4,989)
Exchange adjustment - (21) (85) (106)
At 31 March 2014 5,853 1,074 1,921 8,848
Current service cost 1,487 - 246 1,733
Net interest on pension scheme liabilities 276 42 65 383
Actuarial remeasurements 11,389 122 (15) 11,496
Employer contributions (7,724) (47) (526) (8,297)
Exchange adjustment - (132) 156 24
At 31 March 2015 11,281 1,059 1,847 14,187
The Group operated a UK defined benefit pension plan providing benefits based
on final pensionable pay which is funded. This scheme was closed to new
employees on 30 September 2002, was converted to a Career Average Revalued
Earnings basis on 30 September 2004 and then closed to future accrual from 31
March 2015. No service cost or curtailment gain arose upon closure of the
scheme, due to all previously accrued past service benefits retaining the same
link to future inflation or future earnings.
The latest triennial valuation of the scheme's liabilities was completed as at
31 March 2013, and showed a funding deficit of £13,231,000. To eliminate this
funding shortfall the Trustees and the Company agreed that additional cash
contributions will be paid to the scheme. £2.5 million was contributed in
February 2014, £2.5 million was contributed in April 2014 and 60 additional
monthly payments of £116,667 are to be made starting April 2014. The Company
made an additional unscheduled contribution of £2 million in March 2015.
13. Directors
Philip Aiken
Chairman
Philip Dayer
Non-Executive Director and Senior Independent Director
Jonathan Brooks
Non-Executive Director
Jennifer Allerton
Non-Executive Director
Richard Longdon
Chief Executive
James Kidd
Chief Financial Officer
14. Responsibility statement pursuant to FSA's Disclosure and Transparency
Rule 4 (DTR 4)
Each Director of the Company (whose names and functions appear in note 13)
confirms that (solely for the purpose of DTR 4) to the best of his knowledge:
· the financial information in this document, prepared in accordance
with the applicable UK law and applicable accounting standards, give a true
and fair view of the assets, liabilities, financial position and result of the
Company and of the Group taken as a whole; and
· the Chairman's statement, Chief Executive's review and Finance review
include a fair review of the development and performance of the business and
the position of the Company and Group taken as a whole, together with a
description of the principal risks and uncertainties that they face.
On behalf of the Board
James Kidd Richard Longdon
Chief Financial Officer Chief Executive
19 May 2015
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Land Securities
See all newsREG - Land Sec. Group PLC - Director/PDMR Shareholding
AnnouncementREG - Land Sec. Group PLC - Total Voting Rights
AnnouncementREG - Land Sec. Group PLC - Block listing Interim Review
AnnouncementREG - Land Sec. Group PLC - Confirmation of Full Year Results Date
AnnouncementREG - Land Sec. Group PLC - Landsec Announces New Bond Issuance
Announcement