REG - MS International PLC - Half Yearly Report <Origin Href="QuoteRef">MSTL.L</Origin> - Part 2

MS InternationalAnnouncement

27/11/2014 07:10

- Part 2: For the preceding part double click  ID:nRSa1070Ya 

                                                                             
                                                  The annual financial statements of the Group are prepared in accordance with IFRS as 
                                                  adopted by the European Union. The condensed set of financial statements included in 
                                                  this half-yearly financial report which has not been audited has been prepared in    
                                                  accordance with International Accounting Standard 34, "Interim Financial Reporting," 
                                                  as adopted by the European Union.  The accounting policies are consistent with those 
                                                  applied in the Group Annual financial statements for the 53 weeks ended 3rd May,     
                                                  2014.                                                                                
                                                                                                                                       
                                                  The interim financial information has been reviewed by the Group's auditors, Ernst & 
                                                  Young LLP, their report is included on page 3. These interim financial statements do 
                                                  not constitute statutory financial statements within the meaning of section 435 of   
                                                  the Companies Act 2006. The interim condensed consolidated financial statements do   
                                                  not include all the information and disclosures required in the annual financial     
                                                  statements and should be read in conjunction with the Group's annual financial       
                                                  statements as at 3rd May, 2014.                                                      
                                                                                                                                       
                                                  The Group has adopted all applicable amendments to standards with an effective date    
                                                  from 3rd May, 2014.   The Group has adopted IFRS 10, IFRS 12 and IAS 27 Separate       
                                                  Financial Statements, IAS 32 Offsetting Financial Assets and Financial Liabilities     
                                                  all effective from 1st January 2014.  Adoption of these standards did not have any     
                                                  material impact on financial performance or position of the Group.                     
                                                                                                                                               
                                                  The figures for the year ended 3rd May, 2014 do not constitute the Group's statutory 
                                                  accounts for the period but have been extracted from the statutory accounts. The     
                                                  auditor's report on those accounts, which have been filed with the Registrar of      
                                                  Companies, was unqualified and did not contain any statement under section 498(2) or 
                                                  (3) of the Companies Act 2006.                                                       
                                                                                                                                               
 3                                                Principal risks and uncertainties                                                            
                                                                                                                                               
                                                  The principal risk and uncertainties facing the Group relate to levels of customer   
                                                  demand for the Group's products and services.  Customer demand is driven mainly by   
                                                  general economic conditions but also by pricing, product quality and delivery        
                                                  performance of MS INTERNATIONAL plc and in comparison with our competitors.  Sterling 
                                                  exchange rates against other currencies can influence pricing.                       
                                                                                                                                               
                                                  The Group has considerable financial resources together with long term contracts with 
                                                  a number of customers.  As a consequence, the Directors believe that the Group is    
                                                  well placed to manage its business risk successfully despite the current uncertain   
                                                  economic outlook.                                                                    
                                                                                                                                               
                                                  After making enquiries the Directors have a reasonable expectation that the Company  
                                                  and the Group have adequate resources to continue in operational existence for the   
                                                  foreseeable future.  Accordingly, they continue to adopt the going concern basis in  
                                                  preparing the annual report and accounts.                                            
 
 
 4    Segment information                                                                                                                 
                                                                                                                                          
 (a)  Primary reporting format -                                                                                
      divisional segments                                                                                       
                                                                                                                                          
      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 Forecourt Structures 
      division is engaged in the  
      design and construction of  
      petrol station forecourt    
      structures.  The Directors  
      are of the opinion that     
      seasonality does not        
      significantly affect these  
      results.                    
                                                                                                                                          
      The following table presents 
      revenue and profit          
      information about the       
      Group's divisions for the   
      periods ended 1st November, 
      2014 and 2nd November, 2013. 
                                                                                                                                          
                                    Defence    Forgings    Petrol Station    Total  
                                                                                      Superstructures                        
                                    2014       2013        2014              2013     2014               2013     2014         2013       
                                                                                                                  unaudited    unaudited  
                                    £000       £000        £000              £000     £000               £000     £000         £000       
                                                                                                                               restated   
      Revenue                                                                                                                             
      External                      6,811      9,450       7,744             7,393    7,182              6,500    21,737       23,343     
                                                                                                                                          
                                                                                                                                          
      Total revenue                 6,811      9,450       7,744             7,393    7,182              6,500    21,737       23,343     
                                                                                                                                          
                                                                                                                                          
      Segment result                (1,112)    676         628               546      679                812      195          2,034      
      Net finance expense                                                                                         (124)        (163)      
                                                                                                                                          
                                                                                                                                          
      Profit before taxation                                                                                      71           1,871      
      Taxation                                                                                                    24           (444)      
                                                                                                                                          
                                                                                                                                          
      Profit for the period                                                                                       95           1,427      
                                                                                                                                          
                                                                                                                                          
      Capital expenditure           80         106         280               145      53                 66                               
      Depreciation                  108        93          214               222      141                176                              
                                                                                                                                          
                                                                                                                                          
                                                                                                                                          
      The following table presents 
      segment assets and          
      liabilities of the Group's  
      divisions for the periods   
      ended 1st November, 2014 and 
      2nd November, 2013.         
                                                                                                                                          
      Segmental assets              25,203     29,537      6,495             5,713    6,929              5,055    38,627       40,305     
      Unallocated assets                                                                                          14,711       13,704     
                                                                                                                                          
                                                                                                                                          
      Total assets                                                                                                53,338       54,009     
                                                                                                                                          
                                                                                                                                          
      Segmental liabilities         11,687     12,491      2,146             1,786    3,874              2,992    17,707       17,269     
      Unallocated liabilities                                                                                     8,648        6,587      
                                                                                                                                          
                                                                                                                                          
      Total liabilities                                                                                           26,355       23,856     
                                                                                                                                          
                                                                                                                                          
                                                                                                                                          
 
 
 5  Income tax                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                
    The major components of income tax expense in the consolidated income statement are:                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                           26 weeks ended 1st Nov., 2014         27 weeks ended 2nd Nov., 2013  
                                                                                                                                                                                                                                                                                                                                                                           unaudited                             unaudited                      
                                                                                                                                                                                                                                                                                                                                                                           £'000                                 £'000                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                
    Current income tax charge                                                                                                                                                                                                                                                                                                                                       69                                    581    
                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                
    Current tax