REG - MS International PLC - Final Results
Chairman's Statement
Results and Review
A year ago, in my Chairman's Statement, I stated that we were approaching 'very interesting times'. At that juncture, we were reasonably confident of making good progress throughout the coming year, although it later became evident that global, political and economic uncertainty was gathering momentum and our businesses would not be immune from its effects, as evidenced in our half year results.
What we could not foresee was the advent of the 'Covid-19' pandemic and the devastating effects that it would have on the whole global economy, let alone our diverse businesses. The imposed restrictions on movement in terms of personnel and goods seriously impacted both our national and widespread international trading activities.
Nevertheless, our commitment to research and development across our 'Defence' business continued unabated. During the period we expended some £2.00m (2019 - £0.96m) on expanding our portfolio of small/medium calibre naval and land based stabilised weapon systems.
I am however, bitterly disappointed to report a loss before taxation for the year ending 30th April 2020, amounting to £3.25m (2019 - profit £4.79m) and a loss per share of 15.1p (2019 - profit per share 23.1p) on revenue of £61.15m (2019 - £77.71m). Notwithstanding, the all-important balance sheet has remained strong with cash at a very healthy £16.30m (2019 - £22.89m) and no borrowings, excluding lease liabilities.
Outlook
Whilst prospects for the global economy are most uncertain and the current downturn could be prolonged, we remain keenly confident in the future success of our businesses. We believe that what we have been doing, and will continue to do, particularly in terms of developing innovative and creative new products while simultaneously upgrading existing ones, is the proven, right approach for the markets we serve that will deliver long term rewards. Furthermore, we will strive to expand our services beyond the current customer base into market sectors that have similar product requirements.
'Defence' - we will continue to invest in new product development, not only for naval applications but also suitable for wider land-based systems. Recent innovations have attracted considerable attention across international markets, and it is most pleasing to report that some very exciting opportunities are now being converted into much more serious sales prospects.
'Forgings' - our UK operations have been restructured to align with the changing requirements of the national and international markets we serve. We continue to invest in our highly successful United States based manufacturing operations and we are progressively gaining market share.
'Petrol Station Superstructures' - pent-up demand that resulted from the pandemic 'close-down' is starting to be unleashed as markets open up again for new construction and essential maintenance work on existing sites. Our UK based operations will directly benefit as will those we have in Poland, from where we design, supply, erect and maintain petrol station structures across many parts of eastern and northern Europe.
'Petrol Station Branding' - our UK and much larger European mainland operations should also achieve a similar strong recovery as international borders are reopened. The two signage and corporate branding businesses we acquired in the Netherlands last year both serve broader sectors than our traditional customer base. They will greatly assist the expansion of the division to include other signage markets such as 'Hospitality', - hotels and conference centres; 'Automotive' - motor car showrooms; 'Wayfinding' - relating to airports, holiday theme parks etc., thus adding to our strong petrol station market position. The enlarged division will be addressed as the MSI-Sign Group.
It is appropriate on this occasion to express my appreciation to all our employees, for their understanding and commitment to the business, during what has been a most challenging and disruptive year for everyone.
It is also proper to offer our thanks to HM Government and to those Governments, in countries where we have operating businesses located, for their 'Covid-19' support in what has been an unprecedented time.
We remain committed to moving the business forward again and with the unprecedented experience of the past three months almost behind us, we have the resilience, experience and dedication, along with a great team of people, to achieve our aim. Most importantly, we also enjoy significantly strong financial resources to support and develop opportunities as they arise.
At present the global outlook may be unclear, but with recent positive steps out of the 'lockdown', we are confident that we have the wherewithal not only to progressively recover but also to prosper and take advantage of many exciting opportunities.
All matters considered the Board recommends the payment of a prudent final dividend of 1.75p per share (2019 - 6.5p) making a total for the year of 3.5p (2019 - 8.25p). The final dividend is expected to be paid on 14th August 2020, to those shareholders on the register at the close of business on 17th July 2020.
Michael Bell
30th June 2020
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, which will include the Notice of AGM, will be posted to shareholders shortly, will be 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 10th August 2020 at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster DN4 8DH.
Shareholders are advised to read the statement in the full Annual Report and Accounts in relation to the arrangements for the forthcoming Annual General Meeting because of the current restrictions in force relating to public meetings due to Covid 19.
MS INTERNATIONAL plc
Michael Bell
Tel: 01302 322133
Shore Capital (Nominated Adviser and Broker)
Patrick Castle
Tel: 020 7408 4090
Daniel Bush
Consolidated income statement
For the period ended 30th April, 2020
2020
2019
Continuing operations
Total
Total
£'000
£'000
Revenue
61,153
77,708
Cost of sales
(48,275)
(56,131)
Gross profit
12,878
21,577
Distribution costs
(3,455)
(3,537)
Administrative expenses
(12,542)
(11,846)
(15,997)
(15,383)
Group operating (loss) / profit before exceptional items
(3,119)
6,194
Past service pension costs
-
(1,198)
Group operating (loss) / profit
(3,119)
4,996
Interest received
133
93
Interest paid
(103)
(116)
Other finance costs - pensions
(164)
(186)
(134)
(209)
(Loss) / profit before taxation
(3,253)
4,787
Taxation
762
(975)
(Loss) / profit for the period attributable to equity holders of the parent
(2,491)
3,812
(Loss) / earnings per share: basic and diluted
(15.1p)
23.1p
Consolidated statement of comprehensive income
For the period ended 30th April, 2020
2020
2019
Total
Total
£'000
£'000
(Loss) / profit for the period attributable to equity holders of the parent
(2,491)
3,812
Exchange differences on retranslation of foreign operations
(55)
(242)
Net other comprehensive loss to be reclassified to profit or loss in subsequent periods
(55)
(242)
Remeasurement (losses) / gains on defined benefit pension scheme
(2,197)
403
Deferred taxation on remeasurement on defined benefit scheme
545
(69)
Deferred taxation on revaluation surplus on land and buildings
(110)
-
Net other comprehensive (loss) / income not being reclassified to profit or loss in subsequent periods
(1,762)
334
Total comprehensive (loss) / income for the period attributable to equity holders of the parent
(4,308)
3,904
Consolidated and company statement of changes in equity
For the period ended 30th April, 2020
Share capital
Capital redemption reserve
Other reserves
Revaluation reserve
Share Premium account
Currency translation reserve
Treasury shares
Retained earnings
Total shareholders' funds
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
(a) Group
At 28th April, 2018
1,840
901
2,815
6,055
1,629
521
(3,059)
22,698
33,400
IFRS 15 adjustment
-
-
-
-
-
-
-
(144)
(144)
Profit for the period
-
-
-
-
-
-
-
3,812
3,812
Other comprehensive (loss) / income
-
-
-
-
-
(242)
-
334
92
Total comprehensive (loss) / income
-
-
-
-
-
(242)
-
4,146
3,904
Dividends paid
-
-
-
-
-
-
-
(1,362)
(1,362)
At 27th April, 2019
1,840
901
2,815
6,055
1,629
279
(3,059)
25,338
35,798
Loss for the period
-
-
-
-
-
-
-
(2,491)
(2,491)
Other comprehensive loss
-
-
-
-
-
(55)
-
(1,762)
(1,817)
Total comprehensive loss
-
-
-
-
-
(55)
-
(4,253)
(4,308)
Dividends paid
-
-
-
-
-
-
-
(1,362)
(1,362)
At 30th April, 2020
1,840
901
2,815
6,055
1,629
224
(3,059)
19,723
30,128
(b) Company
At 28th April, 2018
1,840
901
1,565
6,055
1,629
-
(3,059)
18,627
27,558
IFRS 15 adjustment
-
-
-
-
-
-
-
(144)
(144)
Reserve transfer
-
-
6,055
(6,055)
-
-
-
-
-
Loss for the period
-
-
-
-
-
-
-
(233)
(233)
Other comprehensive income
-
-
-
-
-
-
-
334
334
Total comprehensive income
-
-
-
-
-
-
-
101
101
Dividends paid
-
-
-
-
-
-
-
(1,362)
(1,362)
At 27th April, 2019
1,840
901
7,620
-
1,629
-
(3,059)
17,222
26,153
Profit for the period
-
-
-
-
-
-
-
1,366
1,366
Other comprehensive loss
-
-
-
-
-
-
-
(1,608)
(1,608)
Total comprehensive loss
-
-
-
-
-
-
-
(242)
(242)
Dividends paid
-
-
-
-
-
-
-
(1,362)
(1,362)
At 30th April, 2020
1,840
901
7,620
-
1,629
-
(3,059)
15,618
24,549
Consolidated and company statements of financial position
At 30th April, 2020
Group
Company
2020
2019
2020
2019
£'000
£'000
£'000
£'000
ASSETS
Non-current assets
Property, plant and equipment
20,111
20,426
1,121
1,265
Right-of-use assets
1,214
-
5,943
-
Intangible assets
4,140
4,483
-
-
Investments in subsidiaries
-
-
18,036
15,036
Deferred income tax asset
1,875
1,156
1,875
1,241
27,340
26,065
26,975
17,542
Current assets
Inventories
15,857
12,624
1,543
1,462
Trade and other receivables
4,589
7,044
15,433
22,489
Income tax receivable
719
44
139
21
Prepayments
1,775
1,774
296
299
Cash and cash equivalents
16,125
22,886
-
-
39,065
44,372
17,411
24,271
TOTAL ASSETS
66,405
70,437
44,386
41,813
EQUITY AND LIABILITIES
Equity
Share capital
1,840
1,840
1,840
1,840
Capital redemption reserve
901
901
901
901
Other reserves
2,815
2,815
7,620
7,620
Revaluation reserve
6,055
6,055
-
-
Share premium account
1,629
1,629
1,629
1,629
Currency translation reserve
224
279
-
-
Treasury shares
(3,059)
(3,059)
(3,059)
(3,059)
(Loss) / profit for the period
(2,491)
3,812
(979)
(233)
Retained earnings brought forward
22,214
21,526
16,597
17,455
TOTAL EQUITY SHAREHOLDERS' FUNDS
30,128
35,798
24,549
26,153
Non-current liabilities
Defined benefit pension liability
8,563
6,802
8,563
6,802
Deferred income tax liability
1,641
1,567
-
-
Lease liabilities
893
-
5,609
-
11,097
8,369
14,172
6,802
Current liabilities
Bank overdraft
-
-
391
582
Trade and other payables
24,679
25,375
4,891
8,276
Income tax payable
165
895
-
-
Lease liabilities
336
-
383
-
25,180
26,270
5,665
8,858
TOTAL EQUITY AND LIABILITIES
66,405
70,437
44,386
41,813
Consolidated and company cash flow statements
For the period ended 30th April, 2020
Group
Company
2020
2019
2020
2019
£'000
£'000
£'000
£'000
(Loss) / profit before taxation
(3,253)
4,787
1,129
(312)
Adjustments to reconcile profit before taxation to net cash inflow / (outflow) from operating activities
Past service pension costs
-
1,198
-
1,198
IFRS 15 working capital adjustment
-
(144)
-
(144)
Depreciation charge
1,671
1,318
1,001
551
Amortisation charge
631
375
-
-
Net increase of impairment in investment in subsidiary undertaking
-
-
-
168
Profit on sale of fixed assets
(104)
(80)
(93)
(60)
Dividends received
-
-
(2,345)
(690)
Finance costs
134
209
412
249
Foreign exchange gains / (losses)
10
(460)
-
-
Increase in inventories
(1,445)
(958)
(81)
(445)
Decrease / (increase) in receivables
3,019
7,573
4,057
(1,384)
Decrease / (increase) in prepayments
25
(647)
3
36
(Decrease) / increase in payables
(1,021)
(1,849)
(3,462)
1,992
(Decrease) / increase in progress payments
(1,611)
(828)
571
80
Pension fund payments
(600)
(600)
(600)
(600)
Cash (invested in) / generated from operating activities
(2,544)
9,894
592
639
Net interest received / (paid)
66
(23)
(59)
(63)
Taxation (paid) / received
(848)
(797)
30
(36)
Net cash (outflow) / inflow from operating activities
(3,326)
9,074
563
540
Investing activities
Payments for acquisitions, net of cash acquired
(1,178)
-
-
-
Dividends received from subsidiaries
-
-
1,895
690
Purchase of property, plant and equipment
(721)
(891)
(409)
(284)
Proceeds on disposal of property, plant and equipment
128
199
101
176
Net cash (outflow) / inflow from investing activities
(1,771)
(692)
1,587
582
Financing activities
Lease payments
(268)
-
(597)
-
Dividends paid
(1,362)
(1,362)
(1,362)
(1,362)
Net cash outflow from financing activities
(1,630)
(1,362)
(1,959)
(1,362)
(Decrease) / increase in cash and cash equivalents
(6,727)
7,020
191
(240)
Opening cash and cash equivalents / (bank overdraft)
22,886
15,884
(582)
(342)
Exchange differences on cash and cash equivalents
(34)
(18)
-
-
Closing cash and cash equivalents / (bank overdraft)
16,125
22,886
(391)
(582)
The financial information set out above does not constitute the Company's statutory accounts for the periods ended 30th April, 2020 or 27th April, 2019 but is derived from those accounts. Statutory accounts for 2019 have been delivered to the Registrar of Companies, and those for 2020 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, 2020 and 27th April, 2019. 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 not allocated to operating segments.
'Defence'
'Forgings'
'Petrol Station
'Corporate
Total
Superstructures'
Branding'
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Revenue
From external customers
23,464
26,678
11,482
15,695
11,910
15,871
14,297
19,464
61,153
77,708
From other segments
-
-
-
-
386
450
123
226
509
676
Segment revenue
23,464
26,678
11,482
15,695
12,296
16,321
14,420
19,690
61,662
78,384
Segment result
(289)
2,836
(340)
(442)
3
2,055
(2,493)
1,745
(3,119)
6,194
Past service pension costs
-
(1,198)
Net finance costs
(134)
(209)
(Loss) / profit before taxation
(3,253)
4,787
Taxation
762
(975)
(Loss) / profit for the period
(2,491)
3,812
Segmental assets
26,666
29,942
3,570
8,988
8,382
10,787
10,740
9,291
49,358
59,008
Unallocated assets (see below)
17,047
11,429
Total assets
66,405
70,437
Segmental liabilities
16,639
19,500
1,285
6,125
2,274
4,330
4,922
2,806
25,120
32,761
Unallocated liabilities (see below)
11,157
1,878
Total liabilities
36,277
34,639
Capital expenditure
80
67
62
406
293
196
286
118
721
787
Depreciation
222
77
620
517
346
488
235
365
1,423
1,447
Unallocated assets include certain fixed assets (including all UK properties), intangible assets, current assets and deferred tax assets. Unallocated liabilities include the defined pension benefit scheme liability and certain current liabilities.
Geographical analysis
The following table presents revenue and expenditure and certain assets and liabilities information by geographical segment for the periods ended 30th April, 2020 and 27th April, 2019. 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.
United Kingdom
Europe
Americas
Rest of the World
Total
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
External revenue
21,036
30,755
30,748
33,143
8,401
9,572
968
4,238
61,153
77,708
Non-current assets
17,803
17,637
5,017
3,832
4,520
4,596
-
-
27,340
26,065
Current assets
29,004
34,301
8,378
7,670
1,683
2,401
-
-
39,065
44,372
Liabilities
30,473
31,701
5,051
2,260
753
679
-
-
36,277
34,640
Capital expenditure
477
350
244
190
-
351
-
-
721
891
Information about major customers
2020
2019
Revenue from major customers arising from sales reported in the 'Defence' segment:
£'000
£'000
Customer 1
-
10,871
Customer 1
12,633
-
Revenue from major customers arising from sales reported in the 'Corporate Branding' segment:
Customer 1
-
11,905
Customer 1
3,841
-
2
Employee information
2020
2019
Number
Number
The average number of employees, including executive directors, during the period was:
Production
252
264
Technical
66
65
Distribution
45
27
Administration
85
91
448
447
(a)
Staff costs
2020
2019
Including executive directors, employment costs were as follows:
£'000
£'000
Wages and salaries
16,893
17,609
Social Security costs
2,629
1,934
Other pension costs
870
666
20,392
20,209
2020
2019
(b)
Directors' emoluments
£'000
£'000
Aggregate directors' emoluments
1,300
1,672
Pension contributions
33
47
1,333
1,719
3
Past service pension costs
2020
2019
£'000
£'000
Guaranteed minimum pension equalisation adjustment
-
1,198
-
1,198
4
(a)
Taxation
The charge for taxation comprises:
2020
2019
£'000
£'000
Current tax
United Kingdom corporation tax
(510)
540
Adjustments in respect of previous years
165
(16)
Foreign corporation tax
(203)
635
Group current tax
(548)
1,159
Deferred tax
Origination and reversal of temporary differences
(95)
(247)
Adjustments in respect of prior years
(153)
63
Change in tax rate
34
-
Group deferred tax
(214)
(184)
Tax on (loss) / profit
(762)
975
Tax relating to items charged or credited to other comprehensive income:
Deferred tax
Deferred tax on measurement gains on pension scheme current year
545
69
Deferred tax on revaluation surplus on land and buildings
(110)
-
Deferred tax in the Consolidated statement of comprehensive income
435
69
(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 (19%) (2019 - 19%). The differences are explained below:
2020
2019
£'000
£'000
(Loss) / profit before tax
(3,253)
4,787
(Loss) / profit multiplied by standard rate of corporation tax of 19% (2019 - 19%)
(618)
910
Expenses not deductible for tax purposes
(420)
(102)
Adjustments in respect of overseas tax rates
230
120
Current tax adjustment in respect of prior periods
165
(16)
Deferred tax adjustment in respect of prior periods
(153)
63
Deferred tax adjustment in respect of change in rate
34
-
Total tax charge for the period
(762)
975
(c)
Factors affecting future tax charge
A change to the main UK corporation tax rate was enacted in a budget resolution on 17th March, 2020. From 1 April, 2020 the enacted rate remains at 19%, cancelling the previously enacted rate reduction to 17%. Deferred tax at 30th April, 2020 has therefore been provided at 19%. Deferred tax in relation to intangibles recognised on the acquisition of 'MSI-Sign Group B.V.' has been provided at 25%, being the main corporation tax rate in The Netherlands.
5
Earnings per share
The calculation of basic earnings per share is based on:
(a) Loss for the period attributable to equity holders of the parent of £2,491,000 (2019 - profit of £3,812,000).
(b) 16,504,691 (2019 - 16,504,691) Ordinary shares, being the weighted average number of Ordinary shares in issue.
This represents 18,396,073 (2019 - 18,396,073) being the weighted average number of Ordinary shares in issue less 1,891,382 (2019 - less 1,891,382) being the weighted average number of shares both held within the ESOT 245,048 (2019 - 245,048) and purchased by the Company 1,646,334 (2019 - 1,646,334).
The share options issued in the period do not have a dilutive effect on the loss for the period.
6
Dividends paid and proposed
2020
2019
£'000
£'000
Declared and paid during the year
On Ordinary shares
Final dividend for 2019: 6.50p (2018 - 6.50p)
1,073
1,073
Interim dividend for 2020: 1.75p (2019 - 1.75p)
289
289
1,362
1,362
Proposed for approval by shareholders at the AGM
Final dividend for 2020: 1.75p (2019 - 6.50p)
289
1,073
7
Trade and other receivables
Group
Company
2020
2019
2020
2019
£'000
£'000
£'000
£'000
Trade receivables
4,413
6,913
932
3,456
Retentions on contracts
-
113
-
-
Amounts owed by subsidiary undertakings
-
-
14,422
19,029
Other receivables
176
18
79
4
4,589
7,044
15,433
22,489
The aggregate amount of costs incurred and recognised profits to date on contracts is £11,858,000 (2019 - £15,819,000).
(a) Trade receivables are denominated in the following currencies:
Group
Company
2020
2019
2020
2019
£'000
£'000
£'000
£'000
Sterling
1,551
3,674
838
2,751
Euro
2,319
2,141
94
701
US dollar
349
778
-
-
Other currencies
194
320
-
4
4,413
6,913
932
3,456
Trade receivables are non-interest bearing and are generally on 30 day terms and are shown net of provision for impairment. The aged analysis of trade receivables after impairment is as follows:
Group
Total
Not past due
< 30 days
30-60 days
60-90 days
> 90 days
£'000
£'000
£'000
£'000
£'000
£'000
2020
4,413
2,745
343
211
327
787
2019
6,913
6,245
505
148
13
2
As at 30th April, 2020 trade receivables at a nominal value of £109,000 (2019 - £105,000) were impaired and fully provided. Bad debts of £62,000 (2019 - £65,000) were recovered and bad debts of £68,000 (2019 - £52,000) were incurred.
Company
2020
932
865
54
3
7
3
2019
2,764
2,649
40
81
-
(6)
As at 30th April, 2020 trade receivables at a nominal value of £73,000 (2019 - £51,000) were impaired and fully provided. Bad debts of £33,000 (2019 - £20,000) were recovered and bad debts of £55,000 (2019 - £39,000) were incurred.
(b) Retentions on contracts are denominated in the following currencies:
Group
Company
2020
2019
2020
2019
£'000
£'000
£'000
£'000
Sterling
-
113
-
-
-
113
-
-
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
2020
-
-
-
-
-
2019
113
93
20
-
-
Company
2020
-
-
-
-
-
2019
-
-
-
-
-
(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 (2019 - £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:
2020
2019
£'000
£'000
Amounts due from companies backed by liquid assets
7,530
7,219
Amounts due from 'MS INTERNATIONAL Estates Limited'
6,892
11,810
14,422
19,029
8
Cash and cash equivalents / bank overdraft
Group
Company
2020
2019
2020
2019
£'000
£'000
£'000
£'000
Cash at bank and in hand
16,125
17,151
-
-
Short-term deposits
-
5,735
-
-
Bank overdraft
-
-
(391)
(582)
16,125
22,886
(391)
(582)
9
Net funds
Analysis of net funds
Group
2020
2019
£'000
£'000
Cash and cash equivalents
16,125
22,886
Lease liabilities
(1,229)
-
14,896
22,886
Group movement in net funds
Cash / bank overdraft
Lease liabilities
Total
Net funds as at 28th April, 2018
15,884
-
15,884
Cash flows
7,020
-
7,020
Foreign exchange adjustments
(18)
-
(18)
Net funds as at 27th April, 2019
22,886
-
22,886
Recognised on adoption of IFRS 16
-
(781)
(781)
Net funds as at 28th April, 2019
22,886
(781)
22,105
Cash flows
(6,727)
268
(6,459)
Foreign exchange adjustments
(34)
6
(28)
Leases on acquisition
-
(501)
(501)
New leases
-
(185)
(185)
Other changes
-
(36)
(36)
Net funds as at 30 April, 2020
16,125
(1,229)
14,896
10
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 - Company
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. This also includes the impact of the change in the enacted corporation tax rate from 17% to 19% on the related deferred tax provision from prior year.
Share premium account
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
2020
2019
£'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 (2019 - 245,048) Ordinary shares, which represents 1.3% (2019 - 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, 2020 was £338,000 (2019 - £505,000). The Company has made payments of £nil (2019 - £nil) into the ESOT bank accounts during the period. During the period 1,575,000 (2019 - nil) options over shares have been granted. 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 £8,000 (2019 - £7,000). During the period no options on shares were exercised (2019 - nil) and no shares were purchased (2019 - nil).
The Company made the following purchases of its own 10p Ordinary shares to be held in Treasury:
£'000
1,000,000 shares from the Group's pension scheme on 11th December, 2013.
1,722
646,334 shares on 30th January, 2014.
1,237
2,959
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.ENDFR SDMFASESSESM
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