REG - Gleeson (M J) Group - Final Results <Origin Href="QuoteRef">GLEG.L</Origin> - Part 2
29/10/2014 15:03
- Part 2: For the preceding part double click ID:nRSc8051Sa
£000
Operating activities (83) (30)
Investing activities - 3,642
(83) 3,612
4. Exceptional items
Impairment of inventories and contract provisions
At 30 June 2014, the Group conducted a review of the net realisable value of
the land and work-in-progress carrying values of its sites in the light of the
condition of the UK housing market. Where the estimated net present
realisable value is greater than the carrying value within the Balance Sheet,
the Group has partially reversed the impairment previously made.
Deferred tax on tax losses
During the year, the Group recognised £8,326,000 (2013: £4,238,000) of
previously unrecognised deferred tax asset in relation to tax losses available
to offset against future profits.
Exceptional income may be summarised as follows:
2014 2013
£000 £000
Re-instatement of inventories and contract provisions 800 1,028
Tax 8,326 4,238
9,126 5,266
In the year ended 30 June 2014, £800,000 (2013: £1,028,000) of exceptional
income was reported in the Gleeson Homes division and £8,326,000 (2013:
£4,238,000) as tax.
5. Financial income and expenses
Continuing operations Discontinued operations Total
2014 2013 2014 2013 2014 2013
£000 £000 £000 £000 £000 £000
Financial income
Interest on bank deposits 7 45 - - 7 45
Interest on joint venture loans - - - 153 - 153
Other interest 17 - - - 17 -
Unwinding of discount on deferred receipts 461 372 - - 461 372
485 417 - 153 485 570
Financial expenses
Interest on bank overdrafts and loans (48) (3) - - (48) (3)
Bank charges (240) (130) - - (240) (130)
Interest and unwinding of discount on deferred payments (101) (514) - - (101) (514)
(389) (647) - - (389) (647)
Net financial income/(expense) 96 (230) - 153 96 (77)
6. Tax
Continuing operations Discontinued operations Total
2014 2013 2014 2013 2014 2013
£000 £000 £000 £000 £000 £000
Current tax:
Adjustment in respect of prior years (6) (12) 88 8 82 (4)
(6) (12) 88 8 82 (4)
Deferred tax:
Current year (credit)/expense (5,876) (4,336) 6 - (5,870) (4,336)
Impact of rate change 383 28 6 2 389 30
Deferred tax (credit)/expense for the year (5,493) (4,308) 12 2 (5,481) (4,306)
Total tax (5,499) (4,320) 100 10 (5,399) (4,310)
Reductions in the UK corporation tax rate from 24% to 23% (effective 1 April
2013) and to 21% (effective 1 April 2014) were substantively enacted on 3 July
2012 and 2 July 2013 respectively. A further reduction to 20% effective from
1 April 2015 was substantively enacted on 2 July 2013. The weighted average
rate of corporation tax was 22.50% (2013: 23.75%) of the estimated assessable
profit for the year.
The charge for the year can be reconciled to the profit per the Statement of
Comprehensive Income as follows:
2014 2013
£000 £000
Profit before tax on continuing operations 12,160 5,779
Profit before tax from discontinued operations (131) 1,354
Profit before tax 12,029 7,133
Tax charge at standard rate 2,707 1,694
Tax effect of:
Non-taxable income - (326)
Expenses that are not deductible in determining taxable profits 287 119
Tax reliefs not recognised in the Statement of Comprehensive Income (538) -
Utilisation of tax losses not previously recognised - (1,605)
Recognition of tax losses not previously recognised (8,326) (4,235)
Changes in tax rates 389 30
Adjustments in respect of prior years 82 13
Tax charge and effective tax rate for the year (5,399) (4,310)
7. Dividends
2014 2013
£000 £000
Amounts recognised as distributions to equity holders in the year:
Interim dividend for the year ended 30 June 2014 of 1.1p (2013: 0.5 p) per share 582 264
Final dividend for the year ended 30 June 2013 of 2.0p per share 1,058 -
1,640 264
The proposed final dividend for the year ended 30 June 2014 of 4.9p per share
(2013: 2.0p) makes a total dividend for the year of 6.0p (2013: 2.5p).
The proposed final dividend is subject to approval by shareholders at the AGM
and has not been included as a liability in these Financial Statements. The
total estimated dividend to be paid is £2,631,000.
8. Earnings per share
From continuing and discontinued operations
The calculation of the basic and diluted earnings per share is based on the
following data:
Earnings 2014 2013
£000 £000
Earnings for the purposes of basic earnings per share, being net profit
attributable to equity holders of the parent company
Profit from continuing operations 17,659 10,099
Profit from discontinued operations (231) 1,344
Profit for the purposes of basic and diluted earnings per share 17,428 11,443
Number of shares 2014 2013
No. 000 No. 000
Weighted average number of ordinary shares for the purposes of basic earnings per share 52,941 52,758
Effect of dilutive potential ordinary shares:
Share options 915 564
Weighted average number of ordinary shares for the purposes of diluted earnings per share 53,856 53,322
From continuing operations 2014 2013
p p
Basic 33.36 19.14
Diluted 32.79 18.94
From discontinued operations 2014 2013
p p
Basic (0.44) 2.55
Diluted (0.43) 2.52
From continuing and discontinued operations 2014 2013
p p
Basic 32.92 21.69
Diluted 32.36 21.46
2014 2013
Normalised Earnings per share £000 £000
From continuing and discontinued operations
Profit for the purposes of basic and diluted earnings per share 17,428 11,443
Excluding the impact of recognising unrecognised tax losses (8,326) (5,840)
Normalised earnings 9,102 5,603
2014 2013
p p
Basic 17.19 10.62
Diluted 16.90 10.51
This information is provided by RNS
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