REG - MS International PLC - Annual Financial Report
28/06/2022 07:30
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RNS Number : 3728Q MS International PLC 28 June 2022
Chairman's statement
Results and Review
It is a pleasure to report that, for the year ended 30(th) April 2022, the
Company attained considerable progress across the Group's divisions, resulting
in a significantly improved pre-tax profit of £5.97m (2021-£1.59m) on
increased revenue of £74.52m (2021-£61.54m).
Basic earnings per share amounted to 30.9p, (2021- 7.2p). The balance sheet
was further strengthened with cash and cash equivalents rising to £18.1m
(2021 - £17.4m).
The Group has made a strong recovery post the many constraints imposed by
Covid. This, I believe, demonstrates the tangible benefits of operating an
optimistic, long-term investment and support strategy, that we practice daily,
to support and encourage the respective management teams that directly oversee
the operations of our diverse businesses.
During the period under review, two common themes continued to feature across
all divisions, namely the prolonged negative effects of the global pandemic
and extended periods of limited availability of materials and components. Such
issues required close and constant monitoring by our management teams to
ensure sustained high-quality sales output. A job well done by everyone.
'Defence'
This was a remarkable year of great achievements for this division,
highlighted by the phased manufacture and delivery of the first 7 of 8 No
MSI-DS30mm naval weapon systems to the United States Navy. This was achieved
in a timely manner to facilitate our customer's comprehensive test and
certification programme of the MSI product. The anticipated successful
prototype testing of the MSI weapon system, is the precursor to a highly
prized sole source 'Follow-on Production Contract'. Presently, all trials are
going to plan and positive progress is being made.
In the UK, our new 'state of the art' Norwich manufacturing facility is in the
final phase of completion, whilst, in the United States of America, we are in
the early stages of our programme to establish an appropriate product support
resource for our weapon systems, along-side our contemporary forging
facilities, in South Carolina. These projects are essential to support our
perceived growing defence opportunities in the United States.
We also firmly believe that our 'state of the art' weapon system will
significantly enhance the capability and protection of the Royal Navy, once a
forward-looking decision is made to upgrade their existing historic, small
calibre weapons systems. We stand ready, with our modern manufacturing
facilities and proven international capabilities, to work with the UK MOD to
meet such requirements.
'Forgings'
This division also performed extremely well, successfully navigating the
disrupted, and constantly changing, international business environment. There
is little doubt that having established contemporary automated 'local'
production facilities - in the UK and both North and South America, -
successfully enabled MSI to welcome and secure many customers that had
previously procured product from China.
'Petrol Station Superstructures' - mobility hubs
Operations in both the UK and the Poland performed resiliently against a
prevailing uncertain backdrop. Despite the challenges, the division continued
to make great progress, pleasingly exceeding management's revenue forecasts.
Many forecourt operators have continued to develop their sites to incorporate
a substantial grocery store and catering facility and Global-MSI designed,
manufactured and erected many such structures during the period.
As with all construction orientated businesses, the negative impact of the
lack of readily available materials and their associated fluctuating costs,
became a major factor in terms of managing day to day operations. Such
disruptive circumstances necessitated some contracts to be re-negotiated to
the mutual satisfaction of all parties.
'Corporate Branding'
This division traded at similar levels to the prior year, as commercial
activity remained seriously constrained across mainland Europe's national
borders. We took action to restructure the division's operations in both The
Netherlands and Germany and much has been achieved as a result, leaving it
better geared to the current needs of the market. Pleasingly, the UK based
business has continued to prosper, gaining market share and expanding
operational capabilities and facilities.
Outlook
'Defence'
Foremost, we look forward with confidence to a favourable report on our 30mm
naval weapon system, presently on approval test by the US Navy.
Furthermore, recent events have served to focus attention on the need for
appropriate national security to combat potential lethal land-based threats.
We believe that, as our additional 'in-house' product developments come to
fruition, there will be numerous opportunities across international markets to
supply our, tested and proven, land-based defence equipment.
'Forgings'
Demand for our high quality, forged products is increasing, as customers seek
assured and dependable security of supply. To that end, we will continue to
invest in further automating our manufacturing facilities in the UK, the
United States and South America.
'Petrol Station Superstructures'
The markets we serve are vigorously embracing change, not only in the
development of providing and dispensing alternative fuel types but also in
broadening their provision of services to include groceries and catering
facilities. The development expertise and scale of the buildings required to
dispense such services are most appropriate to the designs, manufacturing and
erection skills of Global-MSI. We expect further growth opportunities for both
our UK and Polish operations.
'Corporate Branding'
We have completed restructuring in The Netherlands and Germany and expanded
our UK operations. So, now that inter-country business activity across
mainland Europe has been restored, we are cautiously optimistic that we will
achieve a more profitable division this year.
Pleasingly, we have already received instructions from a number of major
customers to speedily recommence projects, that they had put 'on hold', owing
to the scale and duration of the pandemic.
Summary
We believe that we have placed each of our businesses in a strong and exciting
position within the markets which we serve. Close monitoring of performance
and further support in the development of new products and services will, no
doubt, bring further rewards.
All matters considered the Board recommends the payment of a final dividend of
7.5p per share (2021 - 6.5p) making a total for the year of 9.25p (2021 -
8.25p).
The final dividend is expected to be paid on the 12th August 2022, to those
shareholders on the register at the close of business on the 15th July 2022.
Michael Bell
27(th) June 2021
MS INTERNATIONAL plc
Michael Bell Tel: 01302 322133
Shore Capital (Nominated Adviser and Broker)
Patrick Castle Tel: 020 7408 4090
Daniel Bush
Copies of this announcement are available from the Company's registered office
at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England. The
Notice of AGM will be posted to shareholders on 5(th) July, 2022. The full
Annual Report and Accounts will be posted to shareholders in the week
commencing 11(th) July, 2022. They will be made available on the Company's
website at www.msiplc.com and will be delivered to the Registrar of Companies
after it has been laid before the Company's members at the Annual General
Meeting to be held on 28(th) July, 2022 at The Holiday Inn, Warmsworth,
Doncaster.
Consolidated income statement
For the year ended 30th April, 2022
2022 2021
Continuing operations Total Total
£'000 £'000
Revenue 74,524 61,539
Cost of sales (54,121) (44,218)
Gross profit 20,403 17,321
Distribution costs (3,304) (2,581)
Administrative expenses (12,097) (12,954)
Other operating income 1,185 -
(14,216) (15,535)
Group operating profit 6,187 1,786
Share of net profit of joint venture - 28
Interest received 1 10
Interest paid (95) (92)
Other finance costs - pensions (126) (140)
(220) (222)
Profit before taxation 5,967 1,592
Taxation (1,035) (415)
Profit for the year attributable to equity holders of the parent 4,932 1,177
Basic earnings per share 30.9p 7.2p
Diluted earnings per share 29.6p 7.0p
Consolidated statement of comprehensive income
For the year ended 30th April, 2022
2022 2021
Total Total
£'000 £'000
Profit for the year attributable to equity holders of the parent 4,932 1,177
Exchange differences on retranslation of foreign operations (603) (38)
Net other comprehensive loss to be reclassified to profit or loss in (603) (38)
subsequent years
Remeasurement gains on defined benefit pension scheme 1,601 1,213
Deferred tax on remeasurement on defined benefit scheme (145) (230)
Revaluation of land and buildings 3,868 -
Deferred tax on revaluation surplus on land and buildings (798) -
Net other comprehensive income not being reclassified to profit or loss in 4,526 983
subsequent years
Total comprehensive income for the year attributable to equity holders of the 8,855 2,122
parent
Consolidated and company statement of changes in equity
For the year ended 30th April, 2022
Share capital Capital redemption reserve Other reserves Revaluation reserve Special reserve Currency translation reserve Treasury shares Retained earnings Total shareholders' funds
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
(a) Group
At 30th April, 2020 1,840 901 2,815 6,055 1,629 224 (3,059) 19,723 30,128
Profit for the year - - - - - - - 1,177 1,177
Other comprehensive (loss)/income - - - - - (38) - 983 945
Total comprehensive (loss)/income - - - - - (38) - 2,160 2,122
Dividends paid - - - - - - - (578) (578)
Purchase of own shares - - - - - - (636) - (636)
Cancellation of shares (56) 56 - - - - 906 (906) -
At 30th April, 2021 1,784 957 2,815 6,055 1,629 186 (2,789) 20,399 31,036
Profit for the year - - - - - - - 4,932 4,932
Other comprehensive income/(loss) - - - 3,868 - (603) - 658 3,923
Total comprehensive income/(loss) - - - 3,868 - (603) - 5,590 8,855
Dividends paid - - - - - - - (1,316) (1,316)
At 30th April, 2022 1,784 957 2,815 9,923 1,629 (417) (2,789) 24,673 38,575
(b) Company
At 30th April, 2020 1,840 901 7,620 - 1,629 - (3,059) 15,618 24,549
Profit for the year - - - - - - - 1,548 1,548
Other comprehensive income - - - - - - - 899 899
Total comprehensive income - - - - - - - 2,447 2,447
Dividends paid (note 10) - - - - - - - (578) (578)
Purchase of own shares (note 22) - - - - - - (636) - (636)
Cancellation of shares (56) 56 - - - - 906 (906) -
At 30th April, 2021 1,784 957 7,620 - 1,629 - (2,789) 16,581 25,782
Profit for the year - - - - - - - 3,362 3,362
Other comprehensive income - - - - - - - 1,232 1,232
Total comprehensive income - - - - - - - 4,594 4,594
Dividends paid - - - - - - - (1,316) (1,316)
At 30th April, 2022 1,784 957 7,620 - 1,629 - (2,789) 19,859 29,060
Consolidated and company statements of financial position
At 30th April, 2022
Group Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
ASSETS
Non-current assets
Property, plant and equipment 24,537 19,113 1,017 935
Right-of-use assets 1,479 530 5,029 5,486
Intangible assets 3,002 3,558 - -
Investments in subsidiaries - - 18,126 17,313
Investment in joint venture 34 36 - -
Deferred income tax asset 1,435 1,606 1,374 1,600
30,487 24,843 25,546 25,334
Current assets
Inventories 16,327 12,423 2,592 1,498
Trade and other receivables 11,396 9,369 15,394 16,135
Contract assets 1,773 1,998 - -
Income tax receivable 6 194 - 141
Prepayments 1,352 2,010 218 543
Cash and cash equivalents 18,092 17,390 3,258 943
Restricted cash held in Escrow 1,158 6,165 - -
50,104 49,549 21,462 19,260
TOTAL ASSETS 80,591 74,392 47,008 44,594
EQUITY AND LIABILITIES
Equity
Share capital 1,784 1,784 1,784 1,784
Capital redemption reserve 957 957 957 957
Other reserves 2,815 2,815 7,620 7,620
Revaluation reserve 9,923 6,055 - -
Special reserve 1,629 1,629 1,629 1,629
Currency translation reserve (417) 186 - -
Treasury shares (2,789) (2,789) (2,789) (2,789)
Retained earnings 24,673 20,399 19,859 16,581
TOTAL EQUITY SHAREHOLDERS' FUNDS 38,575 31,036 29,060 25,782
Non-current liabilities
Defined benefit pension liability 4,720 7,095 4,720 7,095
Deferred income tax liability 2,578 1,553 - -
Lease liabilities 1,158 380 4,807 5,214
8,456 9,028 9,527 12,309
Current liabilities
Trade and other payables 14,176 12,410 7,068 5,234
Contract liabilities 18,329 21,192 622 874
Income tax payable 702 561 324 -
Lease liabilities 353 165 407 395
33,560 34,328 8,421 6,503
TOTAL EQUITY AND LIABILITIES 80,591 74,392 47,008 44,594
Consolidated and company cash flow statements
For the year ended 30th April, 2022
Group Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Profit before taxation 5,967 1,592 2,509 92
Adjustments to reconcile profit before taxation to cash generated from
operating activities:
Past service pension costs - 205 - 205
Depreciation charge of owned assets and right-of-use assets 1,746 1,666 931 895
Amortisation charge 227 237 - -
Impairment of goodwill 349 348 - -
Write off of acquired goodwill - 8 - -
Profit on sale of fixed assets (169) (74) (163) (61)
Share of net profit of joint venture - (28) - -
Termination of lease - (7) - -
Finance costs 220 222 292 366
Foreign exchange (losses)/gains (142) 516 - -
(Increase)/decrease in inventories (3,657) 3,377 (1,094) 44
(Increase)/decrease in receivables (1,541) (6,834) 19 37
Decrease/(increase) in prepayments 611 (237) 325 (246)
Increase in payables 1,340 1,162 1,518 1,296
(Decrease)/increase in progress payments (3,660) 7,824 (252) (163)
Pension fund payments (900) (600) (900) (600)
Cash generated from operating activities 391 9,377 3,185 1,865
Net interest paid (43) (52) (1) (49)
Taxation (paid)/received (447) 460 151 -
Net cash (outflow)/inflow from operating activities (99) 9,785 3,335 1,816
Investing activities
Payments for acquisitions, net of cash acquired - (89) - -
Dividends received from subsidiaries - - 1,249 1,498
Purchase of property, plant and equipment (2,703) (781) (578) (268)
Purchase of intangible assets (54) - - -
Proceeds on disposal of property, plant and equipment 227 97 185 62
Decrease/(increase) in cash held in the Escrow account maturing in more than 5,007 (6,165) - -
90 days
Net cash inflow/(outflow) from investing activities 2,477 (6,938) 856 1,292
Financing activities
Purchase of own shares - (636) - (636)
Lease payments (405) (327) (560) (560)
Dividends paid (1,316) (578) (1,316) (578)
Net cash outflow from financing activities (1,721) (1,541) (1,876) (1,774)
Increase in cash and cash equivalents 657 1,306 2,315 1,334
Opening cash and cash equivalents/(bank overdraft) 17,390 16,125 943 (391)
Exchange differences on cash and cash equivalents 45 (41) - -
Closing cash and cash equivalents 18,092 17,390 3,258 943
The financial information set out above does not constitute the Company's
statutory accounts for the periods ended 30(th) April, 2022 or 30th April,
2021 but is derived from those accounts. Statutory accounts for 2021 have been
delivered to the Registrar of Companies and those for 2022 will be delivered
following the Company's Annual General Meeting. The auditors have reported on
those accounts; their reports were unqualified and did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
1. Segment information
The following table presents revenue and profit and certain assets and
liability information regarding the Group's divisions for the years ended 30th
April, 2022 and 30th April, 2021. The reporting format is determined by the
differences in manufacture and services provided by the Group. The 'Defence'
division is engaged in the design, manufacture, and service of defence
equipment. The 'Forgings' division is engaged in the manufacture of forgings.
The 'Petrol Station Superstructures' division is engaged in the design,
manufacture, construction, branding, maintenance, and restyling of petrol
station superstructures. The 'Corporate Branding' division is engaged in the
design, manufacture, installation, and service of corporate brandings.
Management monitors the operating results of its business units separately for
the purpose of making decisions about resource allocation and performance
assessment. Group financing (including finance costs and finance revenue) and
income taxes are managed on a group basis and are therefore not allocated to
operating segments.
'Defence' 'Forgings' 'Petrol Station 'Corporate Total
Superstructures' Branding'
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Segmental revenue
Total revenue 30,219 27,078 16,482 9,970 15,143 11,774 13,009 12,972 74,853 61,794
Revenue from other segments - - - - (245) (145) (84) (110) (329) (255)
Revenue from external customers 30,219 27,078 16,482 9,970 14,898 11,629 12,925 12,862 74,524 61,539
Segment result
Operating profit 4,123 2,570 2,245 425 1,074 448 (1,255) (1,657) 6,187 1,786
Share of net profit of joint venture - 28
Net finance costs (220) (222)
Profit before taxation 5,967 1,592
Taxation (1,035) (415)
Profit for the year 4,932 1,177
Segmental assets
Assets attributable to segments 33,393 35,414 7,883 4,066 9,380 8,492 8,050 8,468 58,706 56,440
Unallocated assets* 21,885 17,952
Total assets 80,591 74,392
Segmental liabilities
Liabilities attributable to segments 23,643 24,795 3,547 2,445 3,109 2,970 3,591 3,510 33,890 33,720
Unallocated liabilities* 8,126 9,636
Total liabilities 42,016 43,356
Other segmental information
Capital expenditure 1,933 440 389 24 195 131 186 186 2,703 781
Depreciation 210 176 561 545 714 377 261 263 1,746 1,361
Amortisation 10 - - - 43 55 174 182 227 237
Impairment - - - - - - 349 348 349 348
* Unallocated assets include certain fixed assets (including all UK
properties), current assets and deferred income tax assets. Unallocated
liabilities include the defined pension benefit scheme liability, the deferred
income tax liability, and certain current liabilities.
Assets and liabilities attributable to segments comprise the assets and
liabilities of each segment adjusted to reflect the elimination of the cost of
investment in subsidiaries and the provision of financing loans provided by MS
INTERNATIONAL plc.
Revenue between segments is determined on an arm's length basis. Segment
results, assets, and liabilities include items directly attributable to the
segment as well as those that can be allocated on a reasonable basis.
Geographical analysis
The following table presents revenue and expenditure and certain assets and
liabilities information by geographical segment for the years ended 30th
April, 2022 and 30th April, 2021. The Group's geographical segments are based
on the location of the Group's assets.
United Kingdom Europe USA South America Total
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
External revenue by origin 41,665 41,191 11,599 12,987 18,917 5,934 2,343 1,427 74,524 61,539
Non-current assets 20,160 17,373 4,327 3,706 5,913 3,751 87 13 30,487 24,843
Current assets 37,235 39,457 6,147 6,899 6,024 2,306 698 887 50,104 49,549
Liabilities 28,380 32,516 4,112 3,729 9,223 7,081 301 30 42,016 43,356
Capital expenditure 2,377 644 133 137 193 - - - 2,703 781
Revenue disaggregated by destination is shown as follows:
2022 2021
£'000 % £'000 %
United Kingdom 31,287 42% 22,259 36%
Europe 17,103 23% 26,574 43%
USA 19,406 26% 5,934 10%
South America 2,421 3% 1,427 2%
Rest of World 4,307 6% 5,345 9%
Total revenue 74,524 100% 61,539 100%
The Group's largest customer, which is reported in the 'Defence' division,
contributed 14.2% to the Group's revenue (2021: 14.9% in the 'Defence'
division from a different customer). Only one other customer, also in the
'Defence' division, contributed more than 10% to the Group's revenue with a
contribution of 11.4% (2021: 11.3% in the 'Defence' division).
2. Other operating income
2022 2021
£'000 £'000
Settlement of contractual dispute 1,185 -
1,185 -
During the year, the Group settled a protracted contractual dispute, the terms
of which are confidential. The amount received has been recognised in other
income. The Group has incurred £0.6m of legal costs in the current year in
relation to this matter. These costs are included in administrative expenses.
2. Employee information
The average number of employees, including executive directors, during the
year was as follows:
Group Company
2022 2021 2022 2021
Number Number Number Number
Production 252 243 74 73
Technical 71 72 23 24
Distribution 26 32 2 5
Administration 98 96 39 32
447 443 138 134
(a) Staff costs
Including executive directors, employment costs were as follows:
Group Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Wages and salaries 18,942 17,420 7,139 6,123
Covid-19 job retention scheme income (1,636) (1,690) - (313)
Social security costs 3,233 3,263 722 647
Pension costs 570 557 352 344
Share options expense 29 29 29 29
21,138 19,579 8,242 6,830
The Covid-19 job retention scheme income has been received in the following
countries:
2022 2021
£'000 £'000
UK - 313
The Netherlands 1,310 1,113
USA 251 254
Poland 75 10
1,636 1,690
(b) Directors' emoluments
2022 2021`
£'000 £'000
Aggregate directors' emoluments 1,810 1,570
Pension contributions 52 42
1,862 1,612
3. (a) Taxation
The charge for taxation comprises:
2022 2021
£'000 £'000
Current tax
United Kingdom corporation tax 667 410
Adjustments in respect of previous years (10) 25
Foreign corporation tax 120 30
Group current tax expense 777 465
Deferred tax
Origination and reversal of temporary differences 261 (40)
Adjustments in respect of previous years (5) (10)
Adjustments in respect of difference in applicable tax rate 2 -
Group deferred tax expense/(credit) 258 (50)
Total tax expense on profit 1,035 415
Tax relating to items charged to other comprehensive income:
2022 2021
£'000 £'000
Deferred tax charged through other comprehensive income
Deferred tax on measurement gains on pension scheme current year (145) (230)
Deferred tax on revaluation surplus on land and buildings (798) -
Deferred tax in the Consolidated statement of comprehensive income (943) (230)
(b) Factors affecting the tax charge for the year
The tax charge assessed for the year is lower than (2021: higher than) the
standard rate of corporation tax in the UK of 19% (2021 - 19%). The
differences are explained below:
2022 2021
£'000 £'000
Profit before tax 5,967 1,592
Profit multiplied by standard rate of corporation tax of 19% (2021 - 19%) 1,134 302
Effects of:
Expenses not deductible for tax purposes (247) (164)
Adjustments in respect of overseas tax rates 161 262
Current tax adjustment in respect of previous years (10) 25
Deferred tax adjustment in respect of previous years (5) (10)
Deferred tax adjustment in respect of different applicable rates 2 -
Total taxation expense for the year 1,035 415
(c) Factors affecting future tax charge
The rate of corporation tax in the UK will remain at 19% until April 2023 when
it will increase to 25%. As the changes have been enacted as at 30th April,
2022, deferred income tax has been provided at 25% or a blended rate depending
upon when the underlying temporary timing differences are expected to unwind.
Deferred tax in relation to intangibles recognised on the acquisition of
'MSI-Sign Group B.V.' has been provided at 25.8%, being the main corporation
tax rate in The Netherlands.
4. Earnings per share
The calculation of basic earnings per share of 30.9p (2021 - 7.2p) is based on
the profit for the year attributable to equity holders of the parent of
£4,932,000 (2021 - £1,177,000) and on a weighted average number of ordinary
shares in issue of 15,949,691 (2021 - 16,342,816). At 30th April, 2022 there
were 1,055,000 (2021 - 380,000) dilutive shares on option with a weighted
average effect of 716,575 (2021 - 391,667) giving a diluted earnings per share
of 29.6p (2021 - 7.0p).
2022 2021
Number of ordinary shares in issue at start of the year 17,841,073 18,396,073
Cancellation of ordinary shares during the year - (555,000)
Number of ordinary shares in issue at the end of the year 17,841,073 17,841,073
Weighted average number of shares in issue 17,841,073 18,234,198
Less weighted average number of shared held in the ESOT (245,048) (245,048)
Less weighted average number of shares purchased by the Company (1,646,334) (1,646,334)
Weighted average number of shares to be used in basic EPS calculation 15,949,691 16,342,816
Weighted average number of the 1,055,000 (2021 - 380,000) dilutive shares 716,575 391,667
Weighted average diluted shares 16,666,266 16,734,483
Profit for the year attributable to equity holders to the parent in £ 4,932,000 1,177,000
Basic earnings per share 30.9p 7.2p
Diluted earnings per share 29.6p 7.0p
5. Dividends paid and proposed 2022 2021
£'000 £'000
Declared and paid during the year
Final dividend for 2021: 6.50p (2020 - 1.75p) 1,037 289
Interim dividend for 2022: 1.75p (2021 - 1.75p) 279 289
1,316 578
Proposed for approval by shareholders at the AGM
Final dividend for 2022: 7.5p (2021- 6.5p) 1,196 1,037
6. Trade and other receivables
Group Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Trade receivables (net of allowance for expected credit losses) 10,167 8,764 2,366 2,184
Amounts owed by subsidiary undertakings - - 13,024 13,872
Amounts owed by joint venture 228 130 - -
Other receivables 1,001 475 4 79
11,396 9,369 15,394 16,135
(a) Trade receivables
Trade receivables are denominated in the following currencies:
Group Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Sterling 5,554 6,112 1,576 1,675
Euro 1,786 1,692 790 509
US dollar 2,406 695 - -
Other currencies 421 265 - -
10,167 8,764 2,366 2,184
Trade receivables are non-interest bearing, generally have 30 day terms, and
are shown net of provision for expected credit losses. The aged analysis of
trade receivables after provision for expected credit losses is as follows:
Group Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Not past due 7,234 7,268 2,316 2,033
< 30 days 2,062 1,381 24 122
30-60 days 64 102 19 28
60-90 days 11 28 8 -
> 90 days 796 (15) (1) 1
Total 10,167 8,764 2,366 2,184
In the Group, trade receivables with a nominal value of £52,000 (2021 -
£43,000) were impaired and fully provided as at 30th April, 2022. During the
year, bad debts of £20,000 (2021 - £81,000) were recovered and bad debts of
£29,000 (2021 - £16,000) were incurred.
In the Company, trade receivables with a nominal value of £33,000 (2021 -
£11,000) were impaired and fully provided as at 30th April, 2022. During the
year, bad debts of £7,000 (2021 - £69,000) were recovered and bad debts of
£29,000 (2021 - £7,000) were incurred.
(b) Amounts owed by joint venture
Amounts owed by joint venture are non-interest bearing and have 30 day terms.
The aged analysis of amounts owed by joint venture net of provision for
expected credit losses as follows:
Group
2022 2021
£'000 £'000
Not past due 135 50
< 30 days 47 33
30-60 days 34 41
60-90 days 12 6
Total 228 130
At 30th April, 2022 there was no provision for expected credit losses relating
to amounts owed by joint venture (2021 - nil).
(c) Intercompany receivables
All amounts due from Group companies are repayable on demand and are not
charged interest. The majority of intercompany balances are to group entities
with liquid assets and are capable of being repaid on demand. There has been
no impairment recognised on intercompany receivables (2021 - nil).
There are loans to 'MS INTERNATIONAL Estates Limited', which although
repayable on demand, are supported by properties, which will not be
immediately realisable. The directors have assessed the likelihood of default
and the loss in the event of default as well as the balance at the reporting
date and conclude that there is no material impairment of the receivable.
The amounts receivable at the reporting date can be categorised as:
Company
2022 2021
£'000 £'000
Amounts due from companies backed by liquid assets 7,099 7,587
Amounts due from 'MS INTERNATIONAL Estates Limited' 5,925 6,285
13,024 13,872
7. Cash and cash equivalents
Group Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Cash at bank and in hand 18,092 17,390 3,258 943
Restricted cash held in Escrow - maturing in more than 90 days 1,158 6,165 - -
Total cash 19,250 23,555 3,258 943
The balance held in Escrow provides security to Lloyds Bank plc in respect of
any guarantees, indemnities, and performance bonds given by the Group in the
ordinary course of business.
8. Net funds
Analysis of net funds Group Company
2022 2021 2022 2021
£'000 £'000 £'000 £'000
Cash and cash equivalents 18,092 17,390 3,258 943
Restricted cash held in Escrow 1,158 6,165 - -
Lease liabilities (1,511) (545) (5,214) (5,609)
17,739 23,010 (1,956) (4,666)
Group movement in net funds
Cash and cash equivalent Restricted cash held in Escrow Lease liabilities Total
At 30th April, 2020 16,125 - (1,229) 14,896
Cash flows 1,306 6,165 327 7,798
Foreign exchange adjustments (41) - (16) (57)
Leases on acquisition - - 402 402
Other changes - - (29) (29)
At 30th April, 2021 17,390 6,165 (545) 23,010
Cash flows 657 (5,007) 405 (3,945)
Foreign exchange adjustments 45 - 7 52
New leases - - (1,327) (1,327)
Other changes - - (51) (51)
At 30th April, 2022 18,092 1,158 (1,511) 17,739
Company movement in net funds
Cash and cash equivalents Lease liabilities Total
At 30th April, 2020 (391) (5,992) (6,383)
Cash flows 1,334 560 1,894
Other changes - (177) (177)
At 30th April, 2021 943 (5,609) (4,666)
Cash flows 2,315 560 2,875
Other changes - (165) (165)
At 30th April, 2022 3,258 (5,214) (1,956)
9. Reserves
Share capital
The balance classified as share capital includes the nominal value on issue of
the Company's equity share capital, comprising 10p ordinary shares.
Capital redemption reserve
The balance classified as capital redemption reserve represents the nominal
value of issued share capital of the Company, repurchased.
Other reserves
Following the transfer of assets held at valuation by the Company to a
subsidiary company, a reserve has been created which is non-distributable.
This is equal to the revaluation reserve previously arising.
Additionally, it includes the non-distributable retained reserve for the
revaluation reserve previously showing in the Company for properties now
transferred to other members of the Group.
Revaluation reserve
The asset revaluation reserve is used to record increases in the fair value of
land and buildings and decreases to the extent that such decrease relates to
an increase on the same assets previously recognised in equity.
Special reserve
The special reserve is a distributable reserve created following the
cancellation of a share premium account by way of court order in March 1993.
Currency translation reserve
The foreign currency translation reserve is used to record exchange
differences arising from the translation of the financial statements of
foreign subsidiaries. It is also used to record the effect of hedging net
investments in foreign operations.
Treasury shares
The treasury share reserve is detailed as follows:
2022 2021
£'000 £'000
Employee Share Ownership Trust 100 100
Shares in treasury (see below) 2,689 2,959
2,789 3,059
The Employee Share Ownership Trust ("ESOT") provides for the issue of options
over ordinary shares in the Company to Group employees, including executive
directors, at the discretion of the Remuneration Committee. The trustee of the
ESOT is Appleby Trust (Jersey) Ltd, an independent company registered in
Jersey.
The trust has purchased an aggregate 245,048 (2021 - 245,048) ordinary shares,
which represents 1.5% (2021 - 1.5%) of the issued share capital of the Company
at an aggregate cost of £100,006. The market value of the shares at 30th
April, 2022 was £728,000 (2021 - £380,000). The Company has not made any
payments (2021 - nil) into the ESOT bank accounts during the year. Details of
the outstanding share options for directors are included in the Directors'
remuneration report.
The assets, liabilities, income, and costs of the ESOT have been incorporated
into the Company's financial statements. Total ESOT costs charged to the
income statement in the year amounts to £1,000 (2021 - £3,000). During the
year, no options have been granted over shares (2021 - nil), no options on
shares were exercised (2021 - nil) and no shares were purchased (2021 - nil).
The Company made the following purchases and cancellations of its own 10p
ordinary shares to be held in Treasury:
Number £'000
Purchase of 1,000,000 shares from the Group's pension scheme on 11th December, 1,000,000 1,722
2013
Purchase of 646,334 shares on 30th January, 2014 646,334 1,237
Purchase of 555,000 shares on 15th January, 2021 555,000 636
Consideration paid for purchase of own shares 2,201,334 3,595
Cancellation of 555,000 shares at weighted average rate (555,000) (906)
Net value of treasury shares 1,646,334 2,689
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