REG - MS International PLC - Final Results <Origin Href="QuoteRef">MSTL.L</Origin> - Part 1
RNS Number : 7832AMS International PLC10 June 2016
MS INTERNATIONAL plc
Results for the 52 weeks ended 30th April, 2016
Chairman's Statement
Results and Review
It is pleasing to report that the Group has continued to build on the good progress attained in the first half of the year, notwithstanding recessionary conditions in the global industrial manufacturing and heavy engineering sector which progressively deepened as the year unfolded.
For theyear ended30th April 2016, profit before taxationincreased to 1.68m (2015 - 1.54m) on revenue up at 49.28m (2015 - 45.50m). Earnings per share amounted to9.6p(2015 - 8.20p).
The balance sheet remains very strong, even after considerable investment, with net cash and short term deposits amounting to12.76m (2015 - 17.15m) at the year end.
'Defence', as we anticipated, continued its recovery with a satisfying upward trajectory in revenue. This was most encouraging following the previous two years when we endured widespread constraints upon international defence budgets that resulted in a disappointingly subdued order intake and ensuing weaker revenues. Meanwhile our investment in products, facilities and personnel development has continued unabated and there are positive signs that we are beginning to reap the rewards of this important commitment.
'Forgings' manufactures on three continents producing a complete size-range of original equipment fork-arms for the forklift truck, construction, agricultural and quarrying equipment manufacturing industries together with after-market products. It experienced a most challenging time as many markets it serves were adversely impacted by the sheer scale of deepening recessionary conditions. As a consequence, the division's three business operations in the UK, USA and Brazil, had to contend with reduced weekly orders and revenue. Nevertheless, relentless tight control of costs and further investment in production efficiency drivers went some way towards countering the negative effects of the slowdown.
'Petrol Station Superstructures' traditional business of design, manufacture and construction of petrol station canopies, convenience stores and car-wash buildings across the UK, Eire and Eastern Europe also experienced a notable downturn in activity as many customers - the major oil companies, dealers and supermarket groups - deferred planned new build programmes. By contrast, Petrol Sign bv, acquired in June 2015, produced an exemplary performance emanating from an incredibly busy year restyling petrol station branding in mainland Western Europe. This success partially offset the effects of the slowdown on other parts of the division.
Outlook
Notwithstanding current negativity in some markets and the fact that growth is continuing to slow virtually everywhere, we have the desire, commitment and resources to maintain a positive stance and, most significantly, we have the ability to invest in the future with new products and facilities whilst reaching out to the opportunities that we perceive are accessible in areas that are new to us. In the meantime our priority is to go forward on all fronts and successfully contend with the existent tough market conditions.
'Defence' - despite the many global security fears, persisting or emerging, there is yet to be any meaningful evidence of the anticipated upturn in defence budgets by governments around the world. As is the case for many global suppliers of defence equipment and services, the fragility of this anticipated upturn remains a salient feature in our future business planning and expectations. Yet, during this prolonged period of market weakness, our response has been to continue investing in the business and that policy will be maintained, for there is little doubt that much is being achieved and we strongly believe that we are doing the right thing in order to grow the division. Our defence business already enjoys a world class reputation for both products and support services and in order to sustain and advance that status, the structure of the operation is being strengthened, new items are being added to the product portfolio and marketing has been intensified in both home and international markets.
'Forgings' - many of our global customers in the manufacture of mobile handling plant and equipment have already chronicled the negative effects of the economic downturn on their businesses. Clearly it may take some time for there to be any sign of a real recovery in these markets. Accordingly, our attention is focused on maintaining tight cost control and seeking any operational efficiencies to ensure that we maintain our highly creditable and enviable reputation as a strong, reliable and cost effective supplier. In the United States we are in the construction phase of a new manufacturing facility to replace the much smaller property nearby. In preparation for the relocation, additional state of the art plant and equipment is currently being assembled for installation in the new facility later this year.
'Petrol Station Superstructures'- the division is seeing a good number of the new station builds that customers postponed last year now being resurrected for construction in the current year. With the summer construction period approaching full swing, there has been a significant upturn in order intake over recent weeks from our traditional markets in the UK, Eire and Eastern Europe. Following the integration of Petrol Sign into the Group, two new 'Petrol Sign' branding business operations have been established one here in the UK and the other in Germany. In addition, a forecourt superstructures operation has been opened in The Netherlands to strengthen the company's market position in mainland Western Europe. We are greatly encouraged by the positive response of the petrol station forecourt market to our business expansion programmes.
Overall, the Group now has some very positive initiatives in place and, despite the current difficult worldwide trading environment, much is being achieved and some very interesting opportunities are opening up.
All matters considered the Board recommends the payment of a maintained final dividend of 6.5p per share (2015 - 6.5p), making the total for the year of 8p (2015 - 8p). The final dividend is expected to be paid on 21st July 2016 to those shareholders on the register at the close of business on 24th June 2016
Michael Bell
9th June 2016
For any further information please contact:
MS INTERNATIONAL plc
Michael Bell
Tel: 01 302 322133
Shore Capital
Nomad and Broker
Bidhi Bhoma/Patrick Castle
Tel: (0) 20 7408 4090
Consolidated income statement
For the 52 weeks ended 30th April, 2016
2016
2015
Total
Total
000
000
Revenue
49,282
45,503
Cost of sales
(36,413)
(34,763)
Gross profit
12,869
10,740
Distribution costs
(3,104)
(2,357)
Administrative expenses
(7,909)
(6,643)
(11,013)
(9,000)
Group operating profit
1,856
1,740
Finance revenue
47
70
Finance costs
(5)
(32)
Other finance costs - pensions
(216)
(237)
(174)
(199)
Profit before taxation
1,682
1,541
Taxation
(98)
(188)
Profit for the period attributable to equity holders of the parent
1,584
1,353
Earnings per share: basic and diluted
9.6p
8.2p
Consolidated and company statement of comprehensive income
For the 52 weeks ended 30th April, 2016
Group
Company
2016
2015
2016
2015
Total
Total
Total
Total
000
000
000
000
Profit for the period attributable to equity holders of the parent
1,584
1,353
1,755
955
Exchange differences on retranslation of foreign operations
228
(106)
-
-
Net other comprehensive profit/(loss) to be reclassified to profit or loss in subsequent periods
228
(106)
-
-
Remeasurement losses on defined benefit pension scheme
(826)
(964)
(826)
(964)
Deferred taxation on remeasurement losses on defined benefit scheme
165
193
165
193
Change in taxation rates
(153)
-
(153)
-
Net other comprehensive loss not being reclassified to profit or loss in subsequent periods
(814)
(771)
(814)
(771)
Total comprehensive income for the period attributable to equity holders of the parent
998
476
941
184
Consolidated and company statement of changes in equity
Issued capital
Capital redemption reserve
Other reserves
Revaluation reserve
Special reserve
Foreign exchange reserve
Treasury shares
Retained earnings
Total
'000
'000
'000
'000
'000
'000
'000
'000
'000
(a) Group
At 3rd May, 2014
1,840
901
2,815
4,146
1,629
(183)
(3,059)
21,054
29,143
Profit for the period
-
-
-
-
-
-
-
1,353
1,353
Other comprehensive loss
-
-
-
-
-
(106)
-
(771)
(877)
Total comprehensive (loss)/income
-
-
-
-
-
(106)
-
582
476
Dividends paid
-
-
-
-
-
-
-
(1,320)
(1,320)
At 2nd May, 2015
1,840
901
2,815
4,146
1,629
(289)
(3,059)
20,316
28,299
Profit for the period
-
-
-
-
-
-
-
1,584
1,584
Other comprehensive income/(loss)
-
-
-
-
-
228
-
(814)
(586)
Total comprehensive income
-
-
-
-
-
228
-
770
998
Dividends paid
-
-
-
-
-
-
-
(1,320)
(1,320)
Change in taxation rates
-
-
-
83
-
-
-
-
83
Depreciation of buildings revaluation
-
-
-
(7)
-
-
-
7
-
At 30th April, 2016
1,840
901
2,815
4,222
1,629
(61)
(3,059)
19,773
28,060
(b) Company
At 3rd May, 2014
1,840
901
1,565
4,240
1,629
-
(3,059)
18,690
25,806
Profit for the period
-
-
-
-
-
-
955
955
Other comprehensive loss
-
-
-
-
-
-
-
(771)
(771)
Total comprehensive income
-
-
-
-
-
-
-
184
184
Dividends paid
-
-
-
-
-
-
-
(1,320)
(1,320)
At 2nd May, 2015
1,840
901
1,565
4,240
1,629
-
(3,059)
17,554
24,670
Profit for the period
-
-
-
-
-
-
-
1,755
1,755
Other comprehensive loss
-
-
-
-
-
-
-
(814)
(814)
Total comprehensive income
-
-
-
-
-
-
-
941
941
Dividends paid
-
-
-
-
-
-
-
(1,320)
(1,320)
Dividend received from subsidiary
-
-
-
-
-
-
-
171
171
Change in taxation rates
-
-
-
83
-
-
-
-
83
Depreciation of buildings revaluation
-
-
-
(7)
-
-
-
7
-
At 30th April, 2016
1,840
901
1,565
4,316
1,629
-
(3,059)
17,353
24,545
Consolidated statements of financial position
At 30th April, 2016
Group
Company
2016
2015
2016
2015
'000
'000
'000
'000
ASSETS
Non-current assets
Property, plant and equipment
15,955
14,563
12,869
12,608
Intangible assets
5,671
3,818
4
13
Investments in subsidiaries
-
-
14,170
11,741
Deferred income tax asset
1,376
1,376
1,376
1,376
23,002
19,757
28,419
25,738
Current assets
Inventories
7,043
8,464
5,808
7,393
Trade and other receivables
8,996
9,454
9,655
9,252
Income tax receivable
118
40
-
-
Prepayments
784
590
682
495
Cash and short-term deposits
12,758
17,148
11,017
16,199
29,699
35,696
27,162
33,339
TOTAL ASSETS
52,701
55,453
55,581
59,077
EQUITY AND LIABILITIES
Equity
Equity share capital
1,840
1,840
1,840
1,840
Capital redemption reserve
901
901
901
901
Other reserve
2,815
2,815
1,565
1,565
Revaluation reserve
4,222
4,146
4,316
4,240
Special reserve
1,629
1,629
1,629
1,629
Currency translation reserve
(61)
(289)
-
-
Treasury shares
(3,059)
(3,059)
(3,059)
(3,059)
Retained earnings
19,773
20,316
17,353
17,554
28,060
28,299
24,545
24,670
Non-current liabilities
Defined benefit pension liability
7,644
6,877
7,644
6,877
Deferred income tax liability
1,590
1,283
987
984
9,234
8,160
8,631
7,861
Current liabilities
Trade and other payables
15,253
18,994
22,270
26,454
Income tax payable
154
-
135
92
15,407
18,994
22,405
26,546
TOTAL EQUITY AND LIABILITIES
52,701
55,453
55,581
59,077
Cash flow statements
For the 52 weeks ended 30th April, 2016
Group
Company
2016
2015
2016
2015
000
000
000
000
Profit before taxation
1,682
1,541
1,880
943
Adjustments to reconcile profit before taxation to net cash in flow from operating activities
Depreciation charge
1,060
1,117
861
931
Amortisation charge
609
317
9
8
Impairment in investment in subsidiary undertaking
-
-
28
88
Administration expenses-pension fund
320
316
320
316
Profit on sale of fixed assets
(98)
(78)
(91)
(75)
Finance costs
174
199
170
178
Foreign exchange gains
83
65
-
-
Decrease/(increase) in inventories
2,394
(302)
1,585
(143)
Decrease/(increase) in receivables
840
(1,194)
(403)
(976)
Increase in prepayments
(194)
(143)
(187)
(132)
Decrease in payables
(1,981)
(389)
(1,705)
(38)
(Decrease)/increase in progress payments
(2,479)
4,158
(2,479)
4,198
Pension fund payments
(595)
(529)
(595)
(529)
Cash generated from operating activities
1,815
5,078
(607)
4,769
Interest received
42
38
46
59
Taxation (paid)/received
(134)
(288)
16
(41)
Net cash inflow/(outflow) from operating activities
1,723
4,828
(545)
4,787
Investing activities
Acquisition of Petrol Sign bv
(2,612)
-
(2,438)
-
Investment in Petrol Sign GmbH
-
-
(19)
-
Purchase of property, plant and equipment
(2,330)
(833)
(1,172)
(693)
Sale of property, plant and equipment
149
187
141
184
Net cash outflow from investing activities
(4,793)
(646)
(3,488)
(509)
Financing activities
Dividends paid
(1,320)
(1,320)
(1,320)
(1,320)
Dividend received from subsidiary
-
-
171
-
Net cash outflow from financing activities
(1,320)
(1,320)
(1,149)
(1,320)
(Decrease)/Increase in cash and cash equivalents
(4,390)
2,862
(5,182)
2,958
Opening cash and cash equivalents
17,148
14,286
16,199
13,241
Closing cash and cash equivalents
12,758
17,148
11,017
16,199
The financial information set out above does not constitute the Company's statutory accounts for the periods ended 30th April, 2016 or 2nd May, 2015 but is derived from those accounts. Statutory accounts for 2015 have been delivered to the Registrar of Companies, and those for 2016 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 periods ended 30th April, 2016 and 2nd May, 2015. 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.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss which in certain respects, as explained in the table below, is measured differently from operating profit or loss in the consolidated financial statements. Group financing (including finance costs and finance revenue) and income taxes are managed on a group basis and are not allocated to operating segments.
Defence
Forgings
Petrol Station
Total
Superstructures
2016
2015
2016
2015
2016
2015
2016
2015
000
000
000
000
000
000
000
000
Revenue
External
21,907
17,010
11,922
15,120
15,453
13,373
49,282
45,503
Total revenue
21,907
17,010
11,922
15,120
15,453
13,373
49,282
45,503
Segment result
1,787
(247)
(343)
1,250
412
737
1,856
1,740
Net finance costs
(174)
(199)
Profit before taxation
1,682
1,541
Taxation
(98)
(188)
Profit for the period
1,584
1,353
Segmental assets
24,607
28,460
5,250
6,299
12,132
5,209
41,989
39,968
Unallocated assets (see below)
10,712
15,485
Total assets
52,701
55,453
Segmental liabilities
10,411
14,407
1,378
1,609
3,454
2,045
15,243
18,061
Unallocated liabilities (see below)
9,398
9,093
Total liabilities
24,641
27,154
Capital expenditure
214
82
1,443
526
550
168
Depreciation
233
217
362
424
911
276
Unallocated assets includes certain fixed assets, intangible assets, current assets and deferred tax assets. Unallocated liabilities includes the defined pension benefit scheme liability and certain current liabilities.
Following the acquisition of Petrol Sign bv, management have revised the allocation of certain costs which has led to a restatement of the prior year segment result for the three divisions. The total segment result of the Group for the prior year remains unchanged.
Geographical analysis
The following table presents revenue and expenditure and certain assets and liabilities information by geographical segment for the periods ended 30th April, 2016 and 2nd May, 2015. The Group's geographical segments are based on the location of the Group's assets. Revenue from external customers is based on the geographical location of its customers.
Europe
North America
Rest of the World
Total
2016
2015
2016
2015
2016
2015
2016
2015
000
000
000
000
000
000
000
000
Revenue
External
39,238
36,255
3,935
4,810
6,109
4,438
49,282
45,503
Non-current assets
21,683
19,457
1,246
192
73
108
23,002
19,757
Current assets
27,544
34,063
1,483
1,432
672
201
29,699
35,696
Liabilities
22,675
26,876
1,531
259
435
19
24,641
27,154
Capital expenditure
1,261
698
1,069
135
-
-
2,330
833
Information about major customers
2016
2015
Revenue from major customers arising from sales reported in the Defence segment:
000
000
Customer 1
10,042
-
Customer 1
-
10,715
2
Employee Information
2016
2015
Number
Number
The average number of employees, including executive directors, during the period was:
Production
237
210
Technical
68
65
Distribution
31
27
Administration
59
54
395
356
(a)
Staff costs
2016
2015
Their, including executive directors, employment costs were as follows:
000
000
Wages and salaries
11,558
11,967
Social Security costs
1,227
1,313
Other pension costs
412
506
13,197
13,786
2016
2015
(b)
Directors' emoluments
000
000
Aggregate directors' emoluments
1,130
1,141
3
Taxation
The charge for taxation comprises:
2016
2015
000
000
Current tax
United Kingdom corporation tax
83
19
Tax over provided in previous years
(82)
(5)
Foreign corporation tax
150
286
Group current tax
151
300
Deferred tax
Origination and reversal of temporary differences
(54)
(50)
Adjustments in respect of prior years
37
(62)
Impact of reduction in deferred tax rate to 18%
(36)
-
Group deferred tax
(53)
(112)
Tax on profit
98
188
Tax relating to items charged or credited to other comprehensive income
Deferred tax
Deferred tax on remeasurement losses on pension scheme current year
(165)
(193)
Impact of reduction in deferred tax rate to 18%
153
-
Income tax in the statement of comprehensive income
(12)
(193)
(b)
Factors affecting the tax charge for the year
The tax assessed for the period differs to the standard rate of corporation tax in the UK (20%) (2015 - 21%). The differences are explained below:
2016
2015
000
000
Profit before tax
1,682
1,541
Profit multiplied by standard rate of corporation tax of 20% (2015 - 21%)
336
324
Expenses not deductible for tax purposes
(157)
(69)
Adjustment in respect of prior periods
(45)
(67)
Impact of reduction in deferred tax rate to 18%
(36)
-
Total tax charge for the period
98
188
4
Earnings per share
The calculation of basic earnings per share is based on:
(a) Profit for the period attributable to equity holders of the parent of 1,584,000 (2015 - 1,353,000).
(b) 16,504,691 (2015 - 16,504,691) Ordinary shares, being the weighted average number of Ordinary shares in issue.
This represents 18,396,073 (2015 - 18,396,073) being the weighted average number of Ordinary shares in issue less 1,891,382 (2015 - less 1,891,392) being the weighted average number of shares both held within the ESOT 245,048 (2015 - 245,048) and purchased by the Company 1,646,334 (2015 - 1,646,334).
5
Dividends paid and proposed
2016
2015
000
000
Declared and paid during the year
On Ordinary shares
Final dividend for 2015 : 6.50p (2014 - 6.50p)
1,073
1,073
Interim dividend for 2016 : 1.50p (2015 - 1.50p)
247
247
1,320
1,320
Proposed for approval by shareholders at the AGM
Final dividend for 2016 : 6.50p (2015 - 6.50p)
1,073
1,073
6
Trade and other receivables
Group
Company
2016
2015
2016
2015
000
000
000
000
Trade receivables
7,744
7,772
6,578
6,646
Retentions on contracts
1,188
1,681
1,188
1,681
Amounts owed by subsidiary undertakings
-
-
1,874
924
Other receivables
64
1
15
1
8,996
9,454
9,655
9,252
Gross amounts due from customers for contract work - included above
1,861
2,172
1,666
1,905
The aggregate amount of costs incurred and recognised profits to date on contracts is 10,775,000 (2015 - 13,280,000).
(a) Trade receivables are denominated in the following currencies
Group
Company
2016
2015
2016
2015
000
000
000
000
Sterling
6,019
6,545
6,019
6,545
Euro
983
236
559
101
US dollar
361
643
-
-
Other currencies
381
348
-
-
7,744
7,772
6,578
6,646
Trade receivables are non-interest bearing and are generally on 30 days terms and are shown net of provision for impairment. The aged analysis of trade receivables not impaired is as follows:
Group
Total
Not past due
< 30 days
30-60 days
60-90 days
> 90 days
000
000
000
000
000
000
2016
7,744
6,026
1,424
269
9
16
2015
7,772
6,328
1,224
98
105
17
As at 30th April, 2016 trade receivables at a nominal value of 102,000 (2015 - 52,000) were impaired and fully provided. Bad debts of 51,000 (2015 - 151,000) were recovered and bad debts of 24,000 (2015 - 42,000) were incurred.
Company
2016
6,578
5,182
1,158
238
-
-
2015
6,646
5,604
905
57
80
-
As at 30th April, 2016 trade receivables at a nominal value of 39,000 (2015 - 39,000) were impaired and fully provided. Bad debts of 8,000 (2015 - 143,000) were recovered and bad debts of 23,000 (2015 - 15,000) were incurred.
(b) Retentions on contracts are denominated in the following currencies
Group
Company
2016
2015
2016
2015
000
000
000
000
Sterling
1,188
1,681
1,188
1,681
Euro
-
-
-
-
US dollar
-
-
-
-
Other currencies
-
-
-
-
1,188
1,681
1,188
1,681
Retentions on contracts are non interest bearing and represent amounts contractually retained by customers on completion of contracts for specific time periods as follows:
Group
Total
Up to 6 months
6 - 12 months
12 - 18 months
18 - 24 months
000
000
000
000
000
2016
1,188
1,188
-
-
-
2015
1,681
1,681
-
-
-
Company
2016
1,188
1,188
-
-
-
2015
1,681
1,681
-
-
-
7
Cash
Group
Company
2016
2015
2016
2015
000
000
000
000
Cash at bank and in hand
7,420
9,884
5,715
8,935
Short term deposits
5,338
7,264
5,302
7,264
12,758
17,148
11,017
16,199
8
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 reserve
This is the revaluation reserve previously arising under UK GAAP which is now part of non-distributable retained reserves.
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. This also includes the impact of the change in related deferred tax due to the change in corporation tax (20% to 18%).
Special reserve
The balance classified as special reserve represents the share premium on the issue of the Company's equity share capital.
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
2016
2015
000
000
Employee Share Ownership Trust
100
100
Shares in treasury (see below)
2,959
2,959
3,059
3,059
During 1991 the Company established an Employee Share Ownership Trust ("ESOT"). The trustee of the ESOT is Appleby Trust (Jersey) Ltd, an independent company registered in Jersey. The 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 trust has purchased an aggregate 245,048 (2015 - 245,048) Ordinary shares, which represents 1.3% (2015 - 1.3%) of the issued share capital of the Company at an aggregate cost of 100,006. The market value of the shares at 30th April, 2016 was 448,000 (2015 - 346,000). The Company has made payments of Nil (2015 - Nil) into the ESOT bank accounts during the period. No options over shares (2015 - Nil) have been granted during the period. 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 period amounts to 7,000 (2015 - 4,000). During the period no options on shares were exercised (2015 - Nil) and no shares were purchased (2015 - Nil).
The Company made the following purchases of its own 10p Ordinary shares to be held in Treasury:
000
11th December, 2013 1,000,000 shares from the Group's pension scheme.
1,722
30th January, 2014 646,334 shares
1,237
2,959
9
Petrol Sign bv
On the 17th June, 2015 the Company acquired the entire issued share capital of Petrol Sign bv, a Company based in The Netherlands from Lambooij Holdings B.V. The consideration for the acquisition was 3,400,000 and was paid in cash on completion.
Petrol Sign bv designs, restyles, produces and installs the complete appearance of petrol station superstructures and forecourt. The acquisition will enhance and widen the ability of our Petrol Station Superstructure Division to offer a more complete package of services to customers.
The fair values of the identifiable assets and liabilities of Petrol Sign bv as at the date of acquisition were:
000
Fair value recognised on acquisition
Customer relationships
1,332
Order backlog
178
Non-compete
43
Trade name
147
Plant and equipment
171
Inventories
973
Receivables
382
Payables
(719)
Bank Overdraft
(174)
Income tax
(58)
Deferred tax
(425)
Total identifiable net assets at fair value
1,850
Goodwill arising on acquisition
588
Total purchase consideration transferred
2,438
Analysis of net cash acquired
Cash purchase consideration
(2,438)
Cash and short term deposits acquired
(174)
Net cash acquired with subsidiary
(2,612)
The goodwill of 588,000 comprises certain intangible assets that cannot be individually separated from the acquiree due to their nature. These items include the expected value of synergies and an assembled workforce. Goodwill is allocated entirely to the petrol station superstructures unit. None of the goodwill is expected to be deductible for income tax purposes.
Transaction costs of 104,000 have been expensed and included in administration costs.
From the date of acquisition Petrol Sign bv has contributed 4,726,000 of revenue and a profit of 405,000 to the profit before tax from continuing operations of the Group. If the combination had taken place at the beginning of the year the consolidated profit of the Group would have been 1,692,000 and the revenue of the Group would have been 49,309,000
The preliminary announcement is prepared on the same basis as set out in the previous year's accounts.
The Directors confirm to the best of their knowledge that:
(a) the financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the group and the undertakings included in the consolidation taken as a whole; and
(b) the Chairman's Statement includes a fair review of the development and performance of the business and the position of the group and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.
The preliminary announcement was approved by the Board on 9th June, 2016 and the above responsibility statement was signed on its behalf by Michael Bell, Executive Chairman and Michael O'Connell, Group Finance Director.
Copies of this announcement are available from the Company's registered office at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England. The full Annual Report and Accounts will be posted to shareholders shortly and will be available on our website at www.msiplc.com and will be delivered to the Registrar of Companies after it has been laid before the Company in general meeting.
This information is provided by RNSThe company news service from the London Stock ExchangeENDFR SSWFLUFMSEDM
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