REG - Trinity Mirror PLC - Half Yearly Report <Origin Href="QuoteRef">TNI.L</Origin> - Part 3
06/09/2014 20:41
- Part 3: For the preceding part double click ID:nRSb4434Nb
to the Group. The cross-currency interest rate swaps are classed in level two of the financial instruments
hierarchy. Level two fair value measurements are those derived from inputs other than quoted prices that are observable for
the asset or liability, either directly or indirectly.
The contracted net debt for the Group, assuming that the private placement loan notes and the cross-currency interest rate
swaps are not terminated prior to maturity, is as follows:
29 December 2013(audited)£m Cash flow£m Loans repaid£m 29 June 2014(unaudited)£m
Non-current liabilities
Loan notes (68.3) - - (68.3)
(68.3) - - (68.3)
Current liabilities
Loan notes (44.2) - 44.2 -
(44.2) - 44.2 -
Current assets
Cash and cash equivalents 15.5 41.0 (44.2) 12.3
15.5 41.0 (44.2) 12.3
Net debt (97.0) 41.0 - (56.0)
The statutory net debt reconciles to the contracted net debt as follows:
29 June 2014(unaudited)£m 29 December 2013(audited)£m
Statutory net debt (49.1) (88.2)
Loan notes at period end exchange rate 59.9 102.4
Loan notes at swapped exchange rate (68.3) (112.5)
Cross-currency interest rate swaps 1.5 1.3
Contracted net debt (56.0) (97.0)
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
13. Retirement benefit schemes
Defined contribution pension schemes
The Group operates the Trinity Mirror Pension Plan (the 'TMPP Scheme'), which is a defined contribution pension scheme for
qualifying employees. The assets of the scheme are held separately from those of the Group in funds under the control of
Trustees.
The Group implemented the Auto Enrolment legislation from 1 July 2013. The TMPP Scheme has three sections, one for members
who elected to join prior to 1 May 2013 which is now closed to new members, one for members who elect to join from 1 May
2013 and one for members from 1 July 2013 who are auto enrolled.
The current service cost charged to the consolidated income statement of £7.1 million (26 weeks ended 30 June 2013: £7.2
million and 52 weeks ended 29 December 2013: £14.8 million) represents contributions payable to the scheme by the Group at
rates specified in the scheme rules. Contributions that were due have been paid over to the scheme at all reporting dates.
Defined benefit pension schemes
Background
The Group's defined benefit pension schemes were closed to new entrants from 1 January 2003 and closed to future accrual
from 31 March 2010.
The principal schemes which together represent the majority of the aggregate value of the assets and liabilities are the
Mirror Group Pension Scheme (the 'Old Scheme'), the MGN Past Service Pension Scheme (the 'Past Service Scheme'), the MGN
Pension Scheme (the 'MGN Scheme'), the Trinity Retirement Benefit Scheme (the 'Trinity Scheme') and the Midland Independent
Newspapers Pension Scheme (the 'MIN Scheme').
The Old Scheme and the Past Service Scheme cover the liabilities for service up to 13 February 1992 for employees and
former employees who worked regularly on the production and distribution of Mirror Group's newspapers. The Old Scheme was
closed on 13 February 1992 and the Past Service Scheme was established to meet any liabilities which are not satisfied by
payments from the Old Scheme and the Maxwell Communications Pension Plan. No contributions have been paid to the Old Scheme
since 1992. The disclosures contained in this note in respect of these two schemes are combined (the 'Old Scheme/Past
Service Scheme').
The remaining four defined benefit pension schemes have all secured their members benefits by way of a buy-in with
insurance companies. It is expected that these schemes will be wound up during 2014 without further contributions from the
Group. On completion of the winding up of these schemes, any surplus assets will be transferred to one of the principal
schemes.
Characteristics
The defined benefit pension schemes provide pensions to members which are based on the final salary pension payable
normally from age 65 plus surviving spouses or dependents benefits following a member's death. Benefits increase both
before and after retirement either in line with statutory requirements or in accordance with the scheme rules. Such
increases are either at fixed rates or in line with retail or consumer prices but subject to upper and lower limits.
All of the schemes are independent of the Group with assets held independently of the Group. They are governed by Trustees
who administer benefits in accordance with the scheme rules and appropriate UK legislation. The principal schemes each have
a professional independent trustee as their chairman with half of the remaining Trustees nominated by the members and half
by the Group.
Maturity profile and cash flow
Across the principal schemes, the invested assets at the prior year end are expected to be sufficient to pay the uninsured
benefits due up to 2043, based on the year end assumptions. The remaining uninsured benefit payments, payable from 2044,
are due to be funded by a combination of asset outperformance and the deficit contributions currently scheduled to be paid
by 2027. The liabilities relate 50% to current pensioners and their spouses or dependants and 50% relate to deferred
pensioners. Uninsured benefit payments in 2013 were £47 million, projected to rise to an annual peak in 2035 of £80 million
and reducing thereafter.
Funding arrangements
The funding of the Group's principal schemes is subject to UK pension legislation as well as the guidance and codes of
practice issued by the Pensions Regulator. Funding targets are agreed between the Trustees and the Group and are reviewed
and revised usually every three years. The funding targets must include a margin for prudence above the expected cost of
paying the benefits and so are different to the liability value for IAS 19 purposes. The funding deficits revealed by these
triennial valuations are removed over time in accordance with an agreed recovery plan and schedule of contributions for
each scheme.
Following a period of consultation with the Trustees of the principal schemes, in conjunction with the refinancing
completed on 14 March 2012, the Trustees agreed to extend their recovery plans with reduced deficit funding payments for
2012, 2013 and 2014. Normalised levels of contributions will recommence from 2015.
As part of this consultation process the formal valuations for the Old Scheme/Past Service Scheme and the MGN Scheme were
completed on 14 March 2012 for a valuation as at 31 December 2010 which showed deficits of £192.5 million and £68.8 million
respectively. The next valuation date is as at 31 December 2013.
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
13. Retirement benefit schemes (continued)
Defined benefit pension schemes (continued)
Funding arrangements (continued)
Also as part of the consultation process, the Trinity Scheme and the MIN Scheme revised their previous schedules of
contributions and recovery plans on 14 March 2012. A valuation was prepared in October 2013 for a valuation as at 30 June
2012 for the Trinity Scheme which showed a deficit of £127.5 million. The last valuation prepared for a valuation as at 31
March 2010 for the MIN Scheme which showed a deficit of £13.3 million. The Trustees of the Trinity Scheme and the MIN
Scheme have agreed to carry out valuations as at 31 December 2013 in order that the valuation date of the principal schemes
are aligned and therefore have agreed to continue with the recovery plans agreed on 14 March 2012.
Following the accelerated payment in 2013, no contributions are due in 2014. During 2013, contributions paid to the defined
benefit pension schemes amounted to £19.0 million being £9.9 million in respect of the agreed 2013 payments and an
accelerated payment of £9.1 million in respect of the agreed 2014 payments. Payments in the first half of 2013 were £5.0
million and payments in the second half of 2013 were £14.0 million. Payments were £11.6 million to the Past Service Scheme,
£4.0 million to the MGN Scheme, £1.0 million to the Trinity Scheme, £1.6 to the MIN Scheme and £0.8 million to the smaller
schemes.
Any changes to amounts payable in 2014 and thereafter will be based on the outcome of the valuations of the principal
schemes for a valuation as at 31 December 2013 which are ongoing and are expected to be completed in the second half of
2014.
Risks
Valuations for funding and accounting purposes are based on assumptions about future economic and demographic variables.
This results in risk of a volatile valuation deficit, and the risk that the ultimate cost of paying benefits is higher than
the current assessed liability value.
The main sources of risk are:
· Investment risk: a reduction in asset returns (or assumed future asset returns);
· Inflation risk: an increase in benefit increases (or assumed future increases); and
· Longevity risk: an increase in average life spans (or assumed life expectancy).
These risks are managed by:
· Investing in insured annuity policies: the income from these policies exactly matches the benefit payments for
the members covered, removing all of the above risks. At the prior year end the insured annuity policies covered 23% of
total liabilities;
· Investing a proportion of assets in government and corporate bonds: changes in the values of the bonds broadly
match changes in the values of the uninsured liabilities, reducing the investment risk. At the prior year end this amounted
to 35% of assets excluding the insured annuity policies;
· Investing a proportion in equities: with the aim of achieving outperformance and so reducing the deficits over
the long term. At the prior year end this amounted to 54% of assets excluding the insured annuity policies; and
· The gradual sale of equities over time to purchase additional annuity policies or bonds: to further reduce risk
as the schemes, which are closed to future accrual, mature.
The Group is not exposed to any unusual, entity specific or scheme specific risks. There were no plan amendments,
settlements or curtailments in the first half or during 2013 which resulted in a pension cost.
Actuarial projections at the prior year end showed removal of the accounting deficit by 2022 due to scheduled contributions
and asset outperformance over assumed investment returns.
Results
For the purposes of the Group's consolidated financial statements, valuations have been performed in accordance with the
requirements of IAS 19 with scheme liabilities calculated using a consistent projected unit valuation method and compared
to the value of the scheme assets at 30 June 2014, the day closest to the reporting date for which such values were
available.
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
13. Retirement benefit schemes (continued)
The assets and liabilities of the principal schemes as at the reporting date are:
Old Scheme/PastService Scheme£m MGN Scheme£m Trinity Scheme£m MIN Scheme £m
Present value of uninsured scheme liabilities (577.8) (468.4) (294.7) (78.7)
Present value of insured scheme liabilities (178.9) - (84.8) (109.4)
Total present value of scheme liabilities (756.7) (468.4) (379.5) (188.1)
Invested and cash assets at fair value 398.2 379.0 305.9 62.8
Value of insurance contracts 178.9 - 84.8 109.4
Total value of scheme assets 577.1 379.0 390.7 172.2
Net scheme (deficit)/surplus (179.6) (89.4) 11.2 (15.9)
Based on actuarial advice, the assumptions used in calculating the scheme liabilities and the actuarial value of those
liabilities are:
29 June 2014 30 June 2013 29 December 2013
Financial assumptions (nominal % pa)
Discount rate 4.25 4.65 4.40
Retail price inflation rate 3.25 3.40 3.35
Consumer price inflation rate 2.25 2.40 2.35
Rate of pension increase in deferment 2.25 2.40 2.35
Rate of pension increases in payment 3.90 3.95 3.95
Mortality assumptions - future life expectancies from age 65 (years)
Male currently aged 65 22.3 22.6 22.3
Female currently aged 65 24.4 24.7 24.4
Male currently aged 55 23.1 23.5 23.1
Female currently aged 55 25.4 25.7 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 -126/+136 -110/+120
Retail price inflation rate +/- 0.5% pa +28/-27 +19/-18
Consumer price inflation rate +/- 0.5% pa +50/-48 +50/-48
Life expectancy at age 65 +/- 1 year +68/-67 +61/-59
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 26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
Pension scheme administrative expenses (2.1) (1.2) (2.8)
Pension scheme finance charge (5.5) (6.6) (13.2)
Defined benefit cost recognised in income statement (7.6) (7.8) (16.0)
(16.0)
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
13. Retirement benefit schemes (continued)
Defined benefit pension schemes (continued)
Consolidated statement of comprehensive income 26 weeks ended 29 June2014 (unaudited)£m 26 weeks ended 30 June2013(unaudited)£m 52 weeks ended 29 December2013(audited)£m
Actuarial loss due to liability experience (0.3) - (11.8)
Actuarial loss due to liability assumption changes (22.9) (39.1) (15.4)
Total liability actuarial loss (23.2) (39.1) (27.2)
Returns on scheme assets greater than discount rate 10.9 44.3 69.7
Total (loss)/gain recognised in statement of comprehensive income (12.3) 5.2 42.5
Consolidated balance sheet 29 June2014 (unaudited)£m 30 June2013(unaudited)£m 29 December2013(audited)£m
Present value of uninsured scheme liabilities (1,419.8) (1,400.7) (1,392.0)
Present value of insured scheme liabilities (385.5) (443.8) (424.1)
Total present value of scheme liabilities (1,805.3) (1,844.5) (1,816.1)
Invested and cash assets at fair value 1,147.7 1,105.4 1,139.8
Value of insurance contracts 385.5 443.8 424.1
Total value of scheme assets 1,533.2 1,549.2 1,563.9
Net scheme deficit (272.1) (295.3) (252.2)
Non-current assets - retirement benefitassets 12.9 25.4 15.7
Non-currentliabilities - retirement benefit obligations (285.0) (320.7) (267.9)
Net scheme deficit (272.1) (295.3) (252.2)
Net scheme deficit included in consolidated balance sheet (272.1) (295.3) (252.2)
Deferred tax included in consolidated balance sheet 54.4 67.9 50.4
Net scheme deficit after deferred tax (217.7) (227.4) (201.8)
Movement in net scheme deficit 29 June2014 (unaudited)£m 30 June2013(unaudited)£m 29 December2013(audited)£m
Opening net scheme deficit (252.2) (297.7) (297.7)
Contributions - 5.0 19.0
Consolidated income statement (7.6) (7.8) (16.0)
Consolidated statement of comprehensive income (12.3) 5.2 42.5
Closing net scheme deficit (272.1) (295.3) (252.2)
Changes in the present value of scheme liabilities 29 June2014 (unaudited)£m 30 June2013(unaudited)£m 29 December2013(audited)£m
Opening present value of scheme liabilities (1,816.1) (1,803.6) (1,803.6)
Interest cost (38.4) (39.6) (79.4)
Actuarial loss - experience (0.3) - (11.8)
Actuarial gain - change to demographic assumptions - - 59.0
Actuarial loss - change to financial assumptions (22.9) (39.1) (74.4)
Benefits paid 37.2 37.8 82.7
Buy-out 35.2 - 11.4
Closing present value of scheme liabilities (1,805.3) (1,844.5) (1,816.1)
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
13. Retirement benefit schemes (continued)
Defined benefit pension schemes (continued)
Changes in the fair value of scheme assets 29 June2014 (unaudited)£m 30 June2013(unaudited)£m 29 December2013(audited)£m
Opening fair value of scheme assets 1,563.9 1,505.9 1,505.9
Interest income 32.9 33.0 66.2
Actual return on assets greater than discount rate 10.9 44.3 69.7
Contributions by employer - 5.0 19.0
Benefits paid (37.2) (37.8) (82.7)
Administrative expenses (2.1) (1.2) (2.8)
Buy-out (35.2) - (11.4)
Closing fair value of scheme assets 1,533.2 1,549.2 1,563.9
Fair value of scheme assets 29 June2014 (unaudited)£m 30 June2013(unaudited)£m 29 December2013(audited)£m
UK equities 220.7 203.3 223.7
US equities 158.2 115.8 159.0
Other overseas equities 242.4 261.7 230.3
Property 29.8 27.6 28.2
Corporate bonds 273.7 266.7 264.7
Fixed interest gilts 55.6 62.4 63.9
Index linked gilts 72.0 82.0 67.4
Cash and other 95.3 85.9 102.6
Invested and cash assets at fair value 1,147.7 1,105.4 1,139.8
Value of insurance contracts 385.5 443.8 424.1
Fair value of scheme assets 1,533.2 1,549.2 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 0.1 (0.2) (9.3) (4.5) (13.9)
Utilisation of provision 0.2 1.7 7.5 1.0 10.4
At 29 June 2014 (3.4) (9.5) (5.2) (9.5) (27.6)
(27.6)
The provisions have been analysed between current and non-current as follows:
29 June2014 (unaudited)£m 30 June2013(unaudited)£m 29 December2013(audited)£m
Current (15.1) (7.5) (10.3)
Non-current (12.5) (7.0) (13.8)
(27.6) (14.5) (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.
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
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. As such, the Company will rebuild distributable reserves from the end of April 2014. 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 (30 June 2013: £25.9 million and 29 December 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 £12.8 million (30 June 2013: £13.6 million and 29 December 2013: £13.4 million). During the period the Trust
purchased 1,391,550 shares (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013: 2,600,000) for a cash
consideration of £2.2 million (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013: £3.0 million). The Trust
received a payment of £2.2 million (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013: £3.0 million) from the
Company to purchase these shares. During the period, 2,271,355 shares were released to senior managers relating to grants
made in prior years (26 weeks ended 30 June 2013: 1,506,797 and 52 weeks ended 29 December 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 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 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 (26 weeks ended 30 June
2013 and 52 weeks ended 29 December 2013: nil). The awards vest after three years, subject to the continued employment of
the participant.
16. Changes in reporting
The effect of the changes in reporting, set out in note 2, on the comparatives is shown below:
As reported 30 June2013£m fish430 June2013£m As restated30 June2013£m As reported29 December2013£m fish429 December2013£m As restated29 December 2013£m
Publishing 287.7 1.1 288.8 576.4 2.0 578.4
Specialist Digital 10.1 (1.1) 9.0 18.7 (2.0) 16.7
Revenue 297.8 - 297.8 595.1 - 595.1
Publishing 57.0 - 57.0 118.5 - 118.5
Specialist Digital 0.1 - 0.1 0.4 - 0.4
Operating profit 57.1 - 57.1 118.9 - 118.9
Notes to the consolidated financial statements
for the 26 weeks ended 29 June 2014 (26 weeks ended 30 June 2013 and 52 weeks ended 29 December 2013)
17. Reconciliation of statutory results to adjusted results
26 weeks ended29 June 2014 (unaudited) Statutoryresults£m Non-recurring items(a)£m Amortisation(b)£m Pensioncharges(c)£m Restructuring Finance costs(e)£m Taxitems(f)£m Adjustedresults £m
charges (d) £m
Revenue 324.2 - - - - - - 324.2
Operating profit 60.0 (23.6) 2.5 2.1 9.3 - - 50.3
Profit before tax 50.5 (23.6) 2.5 7.6 9.3 1.9 - 48.2
Profit after tax 45.6 (24.4) 2.3 6.1 7.3 1.5 - 38.4
Basic EPS (p) 18.4 (9.8) 0.9 2.5 2.9 0.6 - 15.5
26 weeks ended30 June 2013 (unaudited) Statutoryresults£m Non-recurring items(a)£m Amortisation(b)£m Pensioncharges(c)£m Restructuring charges (d) £m Finance costs(e)£m Tax items(f)£m Adjustedresults £m
Revenue 332.0 - - - - - - 332.0
Operating profit 43.5 0.2 2.5 1.2 5.3 - - 52.7
Profit before tax 30.3 0.2 2.5 7.8 5.3 3.2 - 49.3
Profit after tax 23.8 0.2 2.2 6.0 4.1 2.5 (0.7) 38.1
Basic EPS (p) 9.6 0.1 0.9 2.4 1.7 1.0 (0.3) 15.4
52 weeks ended29 December 2013 (audited) 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 profit (134.8) 224.9 5.2 2.8 9.9 - - 108.0
Profit before tax (160.8) 224.9 5.2 16.0 9.9 6.1 - 101.3
Profit after tax (96.4) 180.6 4.8 12.8 7.6 4.9 (35.2) 79.1
Basic 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.
(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.
18. 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.
INDEPENDENT REVIEW REPORT TO TRINITY MIRROR PLC
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report
for the 26 weeks ended 29 June 2014 which comprises the consolidated income statement, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity, the consolidated balance sheet, the consolidated
cash flow statement and related notes 1 to 18. We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland)
2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state
to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are
responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
As disclosed in note 2, 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 has been prepared
in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the
half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of
Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board
for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland)
and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial
statements in the half-yearly financial report for the 26 weeks ended 29 June 2014 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
28 July 2014
This information is provided by RNS
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