REG - Trinity Mirror PLC - Annual Results for 52 weeks ended 28 December 2014 <Origin Href="QuoteRef">TNI.L</Origin> - Part 3
02/03/2015 07:02
- Part 3: For the preceding part double click ID:nRSB1732Gb
(487.8) (304.0) (93.9)
Present value of insured scheme liabilities (186.4) - (79.3) (105.1)
Total present value of scheme liabilities (793.1) (487.8) (383.3) (199.0)
Invested and cash assets at fair value 405.3 397.2 320.1 66.9
Value of liability matching insurance contracts 186.4 - 79.3 105.1
Total value of scheme assets 591.7 397.2 399.4 172.0
Net scheme (deficit)/surplus (201.4) (90.6) 16.1 (27.0)
Based on actuarial advice, the assumptions used in calculating the scheme
liabilities and the actuarial value of those liabilities are:
2014 2013
Financial assumptions (nominal % pa)
Discount rate 3.70 4.40
Retail price inflation rate 3.05 3.35
Consumer price inflation rate 1.85 2.35
Rate of pension increase in deferment 1.85 2.35
Rate of pension increases in payment 3.85 3.95
Mortality assumptions - future life expectancies from age 65 (years)
Male currently aged 65 22.0 22.3
Female currently aged 65 23.9 24.4
Male currently aged 55 22.8 23.1
Female currently aged 55 24.8 25.4
The estimated impact on the IAS 19 liabilities and on the IAS 19 deficit at
the reporting date, due to a reasonably possible change in key assumptions
over the next year, are set out in the table below:
Effect onliabilities Effect ondeficit
£m £m
Discount rate+/- 0.5% pa -135/+148 -121/+133
Retail price inflation rate +/- 0.5% pa +25/-25 +18/-18
Consumer price inflation rate +/- 0.5% pa +43/-41 +43/-41
Life expectancy at age 65 +/- 1 year +71/-69 +64/-62
The effect on the deficit is lower than the effect on the liabilities due to
the matching impact on the value of the insurance contracts held in respect of
some of the liabilities. Each assumption variation represents a reasonably
possible change in the assumption over the next year but might not represent
the actual effect because assumption changes are unlikely to happen in
isolation.
The estimated impact of the assumption variations make no allowance for
changes in the values of invested assets that would arise if market conditions
were to change in order to give rise to the assumption variation. If allowance
were made, the estimated impact would likely be lower as the values of
invested assets would normally change.
The amount included in the consolidated income statement, consolidated
statement of comprehensive income and consolidated balance sheet arising from
the Group's obligations in respect of its defined benefit pension schemes is
as follows:
Consolidated income statement 2014£m 2013£m
Pension scheme administrative expenses (3.2) (2.8)
Pension scheme finance charge (11.2) (13.2)
Defined benefit cost recognised in income statement (14.4) (16.0)
(16.0)
Notes to the consolidated financial statements
for the 52 weeks ended 28 December 2014 (52 weeks ended 29 December 2013)
13. Retirement benefit schemes (continued)
Defined benefit pension schemes (continued)
Consolidated statement of comprehensive income 2014£m 2013£m
Actuarial loss due to liability experience (7.9) (11.8)
Actuarial loss due to liability assumption changes (90.6) (15.4)
Total liability actuarial loss (98.5) (27.2)
Returns on scheme assets greater than discount rate 45.7 69.7
Total (loss)/gain recognised in statement of comprehensive income (52.8) 42.5
Consolidated balance sheet 2014£m 2013£m
Present value of uninsured scheme liabilities (1,492.4) (1,392.0)
Present value of insured scheme liabilities (370.8) (424.1)
Total present value of scheme liabilities (1,863.2) (1,816.1)
Invested and cash assets at fair value 1,191.2 1,139.8
Value of liability matching insurance contracts 370.8 424.1
Total value of scheme assets 1,562.0 1,563.9
Net scheme deficit (301.2) (252.2)
Non-current assets - retirement benefitassets 17.8 15.7
Non-currentliabilities - retirement benefit obligations (319.0) (267.9)
Net scheme deficit (301.2) (252.2)
Net scheme deficit included in consolidated balance sheet (301.2) (252.2)
Deferred tax included in consolidated balance sheet 60.2 50.4
Net scheme deficit after deferred tax (241.0) (201.8)
Movement in net scheme deficit 2014£m 2013£m
Opening net scheme deficit (252.2) (297.7)
Contributions 18.2 19.0
Consolidated income statement (14.4) (16.0)
Consolidated statement of comprehensive income (52.8) 42.5
Closing net scheme deficit (301.2) (252.2)
Changes in the present value of scheme liabilities 2014£m 2013£m
Opening present value of scheme liabilities (1,816.1) (1,803.6)
Interest cost (76.5) (79.4)
Actuarial loss - experience (7.9) (11.8)
Actuarial gain - change to demographic assumptions 41.6 59.0
Actuarial loss - change to financial assumptions (132.2) (74.4)
Benefits paid 79.7 82.7
Buy-out 48.2 11.4
Closing present value of scheme liabilities (1,863.2) (1,816.1)
Changes in the fair value of scheme assets 2014£m 2013£m
Opening fair value of scheme assets 1,563.9 1,505.9
Interest income 65.3 66.2
Actual return on assets greater than discount rate 45.7 69.7
Contributions by employer 18.2 19.0
Benefits paid (79.7) (82.7)
Administrative expenses (3.2) (2.8)
Buy-out (48.2) (11.4)
Closing fair value of scheme assets 1,562.0 1,563.9
Notes to the consolidated financial statements
for the 52 weeks ended 28 December 2014 (52 weeks ended 29 December 2013)
13. Retirement benefit schemes (continued)
Defined benefit pension schemes (continued)
Fair value of scheme assets 2014£m 2013£m
UK equities 219.6 223.7
US equities 189.3 159.0
Other overseas equities 251.2 230.3
Property 26.8 28.2
Corporate bonds 248.7 264.7
Fixed interest gilts 56.3 63.9
Index linked gilts 79.0 67.4
Cash and other 120.3 102.6
Invested and cash assets at fair value 1,191.2 1,139.8
Value of liability matching insurance contracts 370.8 424.1
Fair value of scheme assets 1,562.0 1,563.9
All of the scheme assets have quoted prices in active markets. Scheme assets
include neither direct investments in the Company's ordinary shares nor any
property assets occupied nor other assets used by the Group.
14. Provisions
Share-based Payments£m Property£m Restructuring £m Other£m Total£m
At 29 December 2013 (3.7) (11.0) (3.4) (6.0) (24.1)
Released/(charged) to income statement 1.5 (1.1) (14.0) (12.7) (26.3)
Utilisation of provision 0.8 3.1 13.8 2.5 20.2
At 28 December 2014 (1.4) (9.0) (3.6) (16.2) (30.2)
(30.2)
The provisions have been analysed between current and non-current as follows:
2014£m 2013£m
Current (23.3) (10.3)
Non-current (6.9) (13.8)
(30.2) (24.1)
The share-based payments provision relates to National Insurance obligations
attached to the future crystallisation of awards.
The property provision relates to onerous property leases and future committed
costs related to occupied, let and vacant properties. This provision will be
utilised over the remaining term of the leases.
The restructuring provision relates to restructuring charges incurred in the
delivery of cost reduction measures. This provision is expected to be utilised
within the next year.
The other provision relates to legal and other costs relating to historical
litigation and other matters.
15. Share capital and reserves
The share capital comprises 257,690,520 allotted, called-up and fully paid
ordinary shares of 10p each. The share premium account reflects the premium on
issued ordinary shares. The Group obtained court approval at the end of April
2014 for a reduction in the share premium account of £514.8 million to
eliminate the deficit on the Company's profit and loss account reserve. Profit
generated by the Company after 30 April 2014 is available for distribution to
shareholders.
The capital redemption reserve represents the nominal value of the shares
purchased and subsequently cancelled under share buy-back programmes.
Cumulative goodwill written off to retained earnings and other reserves in
respect of continuing businesses acquired prior to 1998 is £25.9 million
(2013: £25.9 million). On transition to IFRS, the revalued amounts of freehold
properties were deemed to be the cost of the asset and the revaluation reserve
has been transferred to retained earnings and other reserves.
Shares purchased by the Trinity Mirror Employee Benefit Trust (the 'Trust')
are included in retained earnings and other reserves at £11.4 million (2013:
£13.4 million). During the period the Trust purchased 1,391,620 shares (2013:
2,600,000) for a cash consideration of £2.2 million (2013: £3.0 million). The
Trust received a payment of £2.2 million (2013: £3.0 million) from the Company
to purchase these shares. During the period, 3,408,484 shares were released to
senior managers relating to grants made in prior years (2013: 1,652,091).
During the period 935,709 awards were granted to senior managers on a
discretionary basis under the Long Term Incentive Plan (2013: 2,458,487). The
exercise price of the granted awards is £1 for each block of awards granted.
The awards vest after three years, subject to the continued employment of the
participant and satisfaction of certain performance conditions and are
required to be held for a further two years. During the period 96,245 awards
were granted to senior managers under the Restricted Share Plan (2013: nil).
The awards vest after three years, subject to the continued employment of the
participant.
Notes to the consolidated financial statements
for the 52 weeks ended 28 December 2014 (and 52 weeks ended 29 December 2013)
16. Reconciliation of statutory results to adjusted results
52 weeks ended 28 December 2014
Statutoryresults£m Non-recurring items(a)£m Amortisation(b)£m Pensioncharges(c)£m Restructuringcharges (d) £m Finance costs(e)£m Taxitems(f)£m Adjustedresults £m
Revenue 636.3 - - - - - - 636.3
Operating profit 98.6 (15.2) 4.9 3.2 14.0 - - 105.5
Profit before tax 81.6 (15.2) 4.9 14.4 14.0 2.6 - 102.3
Profit after tax 69.8 (17.6) 4.5 11.5 11.0 2.1 - 81.3
Basic EPS (p) 28.1 (6.9) 1.8 4.6 4.4 0.8 - 32.8
52 weeks ended 29 December 2013
Statutoryresults£m Non-recurring items(a)£m Amortisation(b)£m Pensioncharges(c)£m Restructuring charges (d) £m Finance costs(e)£m Taxitems(f)£m Adjustedresults £m
Revenue 663.8 - - - - - - 663.8
Operating (loss)/profit (134.8) 224.9 5.2 2.8 9.9 - - 108.0
(Loss)/profit before tax (160.8) 224.9 5.2 16.0 9.9 6.1 - 101.3
(Loss)/profit after tax (96.4) 180.6 4.8 12.8 7.6 4.9 (35.2) 79.1
Basic (LPS)/EPS (p) (39.0) 73.0 1.9 5.2 3.1 2.0 (14.2) 32.0
(a) Non-recurring items relate to the items charged or credited to
operating profit as set out in note 5.
(b) Amortisation of the Group's other intangible assets and amortisation
included in share of results of associates.
(c) Pension finance charge and pension administrative expenses relating
to the defined benefit pension schemes as set out in note 13.
(d) Restructuring charges in respect of cost reduction measures as set
out in note 14.
(e) Impact of the translation of foreign currency borrowings and fair
value changes on derivative financial instruments as set out in note 7.
(f) Tax items relate to the impact of tax legislation changes due to
the change in the corporation tax rate on the opening deferred tax position
and prior year tax adjustments included in the taxation charge or credit as
set out in note 8.
17. Contingent liabilities
There is potential for further liabilities to arise from the outcome or
resolution of the ongoing historical legal issues. Due to the present
uncertainty in respect of the nature, timing or measurement of any such
liabilities it is too soon to be able to reliably estimate how these matters
will proceed and their financial impact.
This information is provided by RNS
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