REG - Connect Group Plc - Interim Results for the 6 months ended 28 Feb 15 <Origin Href="QuoteRef">CNCTC.L</Origin> - Part 2
15/07/2015 14:02
- Part 2: For the preceding part double click ID:nRSV9157Ka
through implementing a robust Security Governance Framework, establishing a Vulnerability Management solution and further
strengthening of the Security Architecture and process landscape now extended to include the Parcel Freight acquisition.
Continuous monitoring of regulatory requirements to ensure central compliance and guidance communicated out to Divisions on
changes when required.
Loss of key executives and subsequent loss of knowledge and skills in established and recently acquired businesses impacts current and future business performance. Loss of key skills and leadership impacts the capability of the business to deliver its strategic goals. Performance and capability management processes in place, reviewed by the Remuneration Committee and Group Executive. Succession
planning for critical roles and development plans for key individuals reviewed by the Nominations Committee. Integration plans
in place to support key executives within Parcel Freight.
Failure to deliver business plans and financial returns on recent acquisitions. Sales and profits expected from acquisitions may not be met and/or reputation of the business and support for future acquisitions are questioned. Cultural change for acquisitions results in reduced performance and financial returns. Financial and operational metrics are considered along with risk assessments and impact on management before decisions are made.
Performance to plans are reviewed monthly with post investment analysis producing a more thorough review of each acquisition
within 12 months after completion. Detailed integration process, governance and support framework ensures effective and timely
adoption of standards and process by recent acquisitions.
Legislative changes or interpretation impacting the engagement of delivery contractors resulting in an increase in the number of employees. Increased number of employees increases the cost base and potentially creates greater redundancy costs from future efficiency programmes. Contractors have clearly articulated agreements defining tasks they are contracted to provide to News. Regular checks are
carried out by internal audit across the News network to ensure understanding and compliance.
Financial risk and exposure through fraud, poor management controls and/or fluctuating key financial assumptions. Risk of poor controls over debtors and stock could result in fraud, direct loss or reduced profits. Key financial assumptions budgeted for pension, interest and tax could move adversely reducing expected profits. Strong operational processes are supported by a Group accounting policies manual to ensure appropriate financial controls are
consistently applied. In addition, insurance is taken out to cover the Group from major risks. Annual budgets and quarterly
forecasts set realistic expectations internally and externally allowing for or changing objectives to meet short and medium-term
financial targets.
Failure by DMD to prevent breach of airside security causes disruption or loss. Costs could increase through additional security requirements and/or penalties with severe reputational damage potentially causing the loss of contracts for our media business. External security advice supports internal staff to review DMD's exposure, measure effectiveness of controls and recommend new
controls if required. In addition, insurance is taken out to cover the Group from major risks.
Increasing reliance on centralised system solutions and complex operations are not supported by robust enough Business Continuity Planning & Disaster Recovery solutions to prevent disruption outside of expected tolerances. Trading capability, customer experience and sales/margin performance impacted through inability to operate due to systems outages. Significant investment undertaken by the organisation to provide Disaster Recovery capability across the group for all essential
systems. External expertise used to provide guidance and a Disaster Recovery facility. In addition a programme led centrally by
the Group ensures Business Continuity Planning procedures and standards are embedded across the Divisions.
Connect Group PLC (formerly Smiths News PLC)
Condensed Consolidated Income Statement (Unaudited)
For the 6 months to 28 February 2015
6 months to Feb 2015 6 months to Feb 2014 Audited12 months to Aug 2014
£m Note
Under-lying Non-recurring and other items Total Under-lying Non-recurring and other items Total Under-lying Non-recurring and other items Total
Revenue 3 909.9 - 909.9 898.7 - 898.7 1,808.5 - 1,808.5
Operating profit 3 27.7 (10.0) 17.7 26.8 (1.9) 24.9 55.5 (6.9) 48.6
Investment revenues - - 0.1 - 0.1 0.4 - 0.4
Finance costs (3.6) - (3.6) (2.9) - (2.9) (5.9) - (5.9)
Profit before tax 3 24.1 (10.0) 14.1 24.0 (1.9) 22.1 50.0 (6.9) 43.1
Taxation 6 (4.9) 1.2 (3.7) (5.2) 0.1 (5.1) (9.3) 1.0 (8.3)
Profit for the period 19.2 (8.8) 10.4 18.8 (1.8) 17.0 40.7 (5.9) 34.8
Profit attributable to equity shareholders 19.0 (8.8) 10.2 18.7 (1.8) 16.9 40.5 (5.9) 34.6
Profit attributable to non-controlling interests 0.2 - 0.2 0.1 - 0.1 0.2 - 0.2
Profit for the period 19.2 (8.8) 10.4 18.8 (1.8) 17.0 40.7 (5.9) 34.8
Earnings per share1
Basic 8 8.6p 4.6p 9.1p 8.2p 19.6p 16.8p
Diluted 8 8.4p 4.5p 8.7p 7.8p 19.0p 16.2p
Equity dividends per share1 7 2.9p 2.8p 8.7p
1 Rebased EPS and rebased DPS adjust last year reported figures by the rights issue bonus factor adjustment of 0.9015
following the 2 for 7 rights issue in December 2014
Condensed Consolidated Statement of Comprehensive Income (Unaudited)
For the 6 months to 28 February 2015
£m Note 6 months toFeb 2015 6 months toFeb 2014 Audited 12 monthsto Aug 2014
Items that will not be reclassified to the Group Income Statement
Actuarial gains on defined benefit pension scheme 5 4.9 1.7 14.8
Effect of asset limit on defined benefit pension scheme 5 (5.2) (1.8) (16.2)
Tax relating to components of other comprehensive income that will not be reclassified 0.1 - 0.1
(0.2) (0.1) (1.3)
Items that may be reclassified to the Group Income Statement
(Loss)/ gain on cash flow hedges (0.3) 0.5 0.6
Currency translation differences (0.2) - (0.2)
Tax relating to components of other comprehensive income - (0.3) (0.1)
Other comprehensive income (0.5) 0.1 0.3
Total other comprehensive income for the period (0.7) 0.1 (1.0)
Profit for the period 10.4 17.0 34.8
Total comprehensive income for the period 9.7 17.1 33.8
Total comprehensive income attributable to equity shareholders 9.5 17.0 33.6
Total comprehensive income attributable to non controlling interest 0.2 0.1 0.2
Total comprehensive income for the period was fully attributable to the equity holders of the parent company.
Condensed Consolidated Balance Sheet (Unaudited)
As at 28 February 2015
£m Note As atFeb 2015 As atFeb 2014 Audited as atAug 2014
Non-current assets
Intangible assets 11 172.9 67.0 65.7
Property, plant and equipment 47.5 25.6 29.0
Interest in joint venture and associate 4.3 4.2 4.3
Derivative financial instruments - 1.0 0.6
Retirement benefit assets 0.3 0.2 0.3
Deferred tax assets 8.2 7.4 7.2
233.2 105.4 107.1
Current assets
Inventories 43.7 45.9 45.3
Trade and other receivables 124.2 122.3 128.1
Cash and cash equivalents 13 12.7 12.5 20.4
180.6 180.7 193.8
Total assets 413.8 286.1 300.9
Current liabilities
Trade and other payables (183.5) (180.1) (192.3)
Current tax liabilities (7.6) (7.3) (6.1)
Obligations under finance leases (2.4) (0.7) (0.9)
Bank overdrafts and other borrowings 13 (64.5) (67.9) (60.9)
Provisions 15 (6.6) (3.9) (3.4)
Derivative financial instruments - (0.8) -
Retirement benefits obligation 5 (4.1) (4.1) (4.1)
(268.7) (264.8) (283.0)
Non-current liabilities
Bank loans and other borrowings 13 (98.0) (48.3) (48.4)
Retirement benefit obligation 5 (17.5) (17.8) (17.2)
Deferred tax liabilities (13.3) (4.8) (3.2)
Long-term provisions 15 (5.9) (1.7) (1.9)
Obligations under finance leases (5.7) (0.6) (3.2)
Derivative financial instruments - - -
Other non-current liabilities (1.9) (1.4) (1.4)
(142.3) (74.6) (75.3)
Total liabilities (411.0) (339.4) (343.0)
Total net assets/ (liabilities) 2.8 (53.3) (42.1)
Equity
Called up share capital 12.2 9.5 9.5
Share Premium Account 55.1 5.1 5.3
Other reserves (286.4) (284.0) (285.6)
Retained earnings 221.5 216.0 228.5
Total shareholders' equity 2.4 (53.4) (42.3)
Non-controlling interests in equity 0.4 0.1 0.2
Total equity 2.8 (53.3) (42.1)
Condensed Consolidated Statement of Changes in Equity (Unaudited)
For the 6 months to 28 February 2015
£m Share Capital Share Premium Account Other Reserves Retained Earnings Total shareholders equity Non-controlling interests in equity Total equity
Balance at 31 August 2013 9.2 1.2 (282.2) 214.9 (56.9) - (56.9)
Profit for the period - - - 16.9 16.9 0.1 17.0
(Loss) / gain on cash flow hedges - - 0.5 - 0.5 - 0.5
Actuarial gain on defined benefit pension scheme - - - 1.7 1.7 - 1.7
Impact of IFRIC 14 on defined benefit pension scheme - - - (1.8) (1.8) - (1.8)
Tax relating to components of other comprehensive income - - - (0.3) (0.3) - (0.3)
Total comprehensive income for the period - - 0.5 16.5 17.0 0.1 17.1
Issue of share capital 0.3 3.9 - (4.0) 0.2 - 0.2
Dividends paid - - - (11.9) (11.9) - (11.9)
Employee share schemes - - (2.3) - (2.3) - (2.3)
Recognition of share based payments - - - 0.5 0.5 - 0.5
Balance at 28 February 2014 9.5 5.1 (284.0) 216.0 (53.4) 0.1 (53.3)
Profit for the period - - - 17.7 17.7 0.1 17.8
(Loss) / gain on cash flow hedges - - 0.1 0.1 - 0.1
Actuarial gain on defined benefit pension scheme - - - 13.1 13.1 - 13.1
Impact of IFRIC 14 on defined benefit pension scheme - - - (14.4) (14.4) - (14.4)
Currency translation differences - - (0.2) - (0.2) - (0.2)
Tax relating to components of other comprehensive income - - (0.1) 0.4 0.3 - 0.3
Total comprehensive income for the period - - (0.2) 16.8 16.6 0.1 16.7
Issue of share capital - 0.2 4.0 4.2 - 4.2
Purchase of own shares (6.3) - (6.3) - (6.3)
Dividends paid - - (5.8) (5.8) - (5.8)
Employee share schemes - - 4.9 (2.6) 2.3 - 2.3
Recognition of share based payments - - 0.1 0.1 - 0.1
Balance at 31 August 2014 9.5 5.3 (285.6) 228.5 (42.3) 0.2 (42.1)
Profit for the period - - - 10.2 10.2 0.2 10.4
(Loss) / gain on cash flow hedges - - (0.3) - (0.3) - (0.3)
Currency translation differences - - (0.2) - (0.2) - (0.2)
Actuarial gain on defined benefit pension scheme - - - 4.9 4.9 - 4.9
Impact of IFRIC 14 on defined benefit pension scheme - - - (5.2) (5.2) - (5.2)
Tax relating to components of other comprehensive income - - - 0.1 0.1 - 0.1
Total comprehensive income for the period - - (0.5) 10.0 9.5 0.2 9.7
Issue of share capital 2.7 49.8 - - 52.5 - 52.5
Dividends paid - - - (14.4) (14.4) - (14.4)
Purchase of own shares - - (4.4) - (4.4) - (4.4)
Employee share schemes - - 4.1 (4.1) - - -
Recognition of share based payments - - - 1.5 1.5 1.5
Balance at 28 February 2015 12.2 55.1 (286.4) 221.5 2.4 0.4 2.8
221.5
2.4
0.4
2.8
Condensed Consolidated Group Cash Flow Statement (Unaudited)
For the 6 months to 28 February 2015
£m Note 6 months toFeb 2015 6 months toFeb 2014 Audited 12months toAug 2014
Net cash from operating activities 9 18.6 17.0 47.4
Investing activities
Dividends from associates - 0.2
Acquisitions 12 (105.3) (0.3) (0.3)
Proceeds on disposal of property, plant and equipment 0.2 - -
Purchase of property, plant and equipment (2.0) (2.7) (6.8)
Purchase of intangible assets (2.0) (1.8) (3.5)
Net cash used in investing activities (109.1) (4.8) (10.4)
Financing activities
Interest paid (3.3) (4.2) (6.1)
Dividends paid (14.4) (11.9) (17.7)
Repayments of obligations under finance leases (1.0) (0.5) (1.3)
Proceeds on issue of shares 52.5 0.3 0.7
Purchase of shares for Employee Benefit Trust (4.4) (4.5) (6.3)
Repayment of borrowings - 16.0 (34.0)
New bank loans raised 50.0 - 50.0
(Decrease)/ Increase in short term borrowings 3.6 (4.9) (11.9)
Net cash from financing activities 83.0 (9.7) (26.6)
Net (decrease)/ increase in cash and cash equivalents (7.5) 2.5 10.4
Effect of foreign exchange rate changes (0.2) (0.1) (0.1)
(7.7) 2.4 10.3
Opening net cash and cash equivalents 20.4 10.1 10.1
Closing net cash and cash equivalents 12.7 12.5 20.4
20.4
Analysis of net debt
As at As at Auditedas at
£m Note Feb 2015 Feb 2014 Aug 2014
Cash and cash equivalents 13 12.7 12.5 20.4
Current borrowings 13 (64.5) (67.9) (60.9)
Non-current borrowings 13 (98.0) (48.3) (48.4)
Finance lease liabilities (8.1) (1.3) (4.1)
Net debt (157.9) (105.0) (93.0)
(93.0)
Notes to the Condensed Unaudited Interim Financial Statements
For the 6 months to 28 February 2015
1 General Information
These Interim Financial Statements are unaudited and not reviewed.
The information for the year ended 31 August 2014 does not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The
auditors' report on those accounts was not qualified, did not draw attention to any matters by way of emphasis and did not
contain statements under section 498(2) or (3) of the Companies Act 2006.
Going Concern
The Group meets its day to day working capital requirements through its committed bank facility of £250m which runs until
November 2018.
The Group's forecasts, taking into account the board's future expectations of the Group's performance, indicate that there
is substantial headroom within these bank facilities and the Group will continue to operate well within the covenants
attaching to those facilities. Those bank facilities together with renewed long term contracts with a number of publishers
mean that the Group is well placed to manage its business risks successfully.
As a result the directors have a reasonable expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the condensed
consolidated interim financial information.
The Group's principal areas of estimation and judgement remain unchanged since the year end and are set out in note 1 (c)
on page 70 of the Annual Report for the year ended 31 August 2014.
2 Significant Accounting Policies
The unaudited 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. The
same accounting policies, presentation and methods of computation are followed in these unaudited condensed financial
statements as were applied in the preparation of the Group's financial statements for the year ended 31 August 2014.
3 Segmental Analysis of Results
In accordance with IFRS 8 'Operating Segments', Group management has identified its operating segments. The performance of
these operating segments is reviewed, on a monthly basis, by the Board. The Board monitors the tangible, intangible and
financial assets attributable to each segment to determine the allocation of resources and the performance of each
segment.
These operating segments are:
Connect News & Media: News distribution (referred to as Smiths News) The UK market leading distributor of newspapers and magazines to 30,000 retailers across England and Wales from 46 distribution centres.
Connect News & Media: Media(referred to as DMD) A supplier of newspaper and magazines to airlines and an emerging player in inflight entertainment.
Connect Books(referred to as Bertrams, Dawson Books and Wordery) A leading UK distributor of physical and digital books to high street and on-line retailers, public libraries, academic institutions and direct to consumers with a strong international presence, supplying 95 countries.
Connect Education and Care(referred to as The Consortium) A leading distributor of education and care consumable products servicing 30,000 customers.
Connect Parcel Freight(referred to as Tuffnells) A leading provider of next day B2B delivery of mixed parcel freight consignments.
The following is an analysis of the Group's revenue and results by reportable segment:
Revenue Operating profit
£m 6 months to Feb 2015 6 months to Feb 2014 12 months to Aug 2014 6 months to Feb 2015 6 months to Feb 2014 12 months to Aug 2014
Connect News & Media: News distribution 733.9 748.6 1,524.8 20.5 20.5 42.9
Connect News & Media: Media 12.7 12.3 25.1 1.0 1.0 2.3
Connect Books 103.4 106.6 193.7 1.9 2.3 2.5
Connect Education & Care 31.5 31.2 64.9 2.8 3.0 7.8
Connect Parcel Freight 28.4 - - 1.5 - -
Total group - underlying 909.9 898.7 1,808.5 27.7 26.8 55.5
Non-recurring and other items - - - (10.0) (1.9) (6.9)
Total group - statutory 909.9 898.7 1,808.5 17.7 24.9 48.6
Net finance expense (3.6) (2.8) (5.5)
Profit before taxation 14.1 22.1 43.1
Segment assets and liabilities
Assets Liabilities Net (liabilities) /assets
£m HY2015 HY2014 FY2014 HY2015 HY2014 FY2014 HY2015 HY2014 FY2014
Connect News & Media: News distribution 102.3 119.4 144.5 (291.9) (247.0) (261.1) (189.6) (127.6) (116.6)
Connect News & Media: Media 20.0 18.2 18.8 (8.2) (7.6) (7.2) 11.8 10.6 11.6
Connect Books 85.8 85.8 79.8 (62.5) (61.4) (56.9) 23.3 24.4 22.9
Connect Education & Care 56.3 62.7 57.8 (14.2) (23.4) (17.8) 42.1 39.3 40.0
Connect Parcel Freight 149.4 - - (34.2) - - 115.2 - -
Consolidated assets/ (liabilities) 413.8 286.1 300.9 (411.0) (339.4) (343.0) 2.8 (53.3) (42.1)
Segment depreciation, amortisation and non-current asset additions
Depreciation Amortisation Additions to non-current assets
£m HY2015 HY2014 FY2014 HY2015 HY2014 FY2014 HY2015 HY2014 FY2014
Connect News & Media: News distribution (2.1) (1.9) (4.0) (0.8) (0.6) (1.4) 117.3 1.7 7.7
Connect News & Media: Media (0.1) (0.1) (0.1) (0.2) (0.1) (0.3) - - -
Connect Books (0.3) (0.3) (0.6) (1.2) (1.0) (2.4) 0.5 1.3 2.5
Connect Education & Care (0.3) (0.2) (0.5) (1.0) (0.7) (1.7) 1.0 0.2 1.2
Connect Parcel Freight (0.5) - - (1.1) - - 0.6 - -
Consolidated total (3.3) (2.5) (5.2) (4.3) (2.4) (5.8) 119.4 3.2 11.4
Geographical analysis
Revenue by destination Non-current assets bylocation of operation
£m 6 months to Feb 2015 6 months to Feb 2014 12 months to Aug 2014 6 months to Feb 2015 6 months to Feb 2014 12 months to Aug 2014
United Kingdom 869.1 879.1 1,729.9 224.5 105.1 98.6
Europe 26.3 15.7 51.2 0.2 0.3 0.2
Rest of World 14.5 3.9 27.4 - - -
Consolidated total 909.9 898.7 1,808.5 224.7 105.4 98.8
4 Non-Recurring and Other Items
£m 6 months to Feb 2015 6 months to Feb 2014 12 months to Aug 2014
Integration costs (0.2) - -
Network and re-organisation costs (0.8) (0.3) (3.0)
Acquisition costs (6.3) (0.4) (0.9)
Release of property provisions - 0.6 0.5
Amortisation of acquired intangibles (2.7) (1.3) (3.0)
Interest - - -
Impairment of acquired intangibles - (0.5) (0.5)
Total before tax (10.0) (1.9) (6.9)
Taxation 1.2 0.1 1.0
Total after taxation (8.8) (1.8) (5.9)
Non-recurring and other items for the period totalled £8.8m after tax for the period, compared to £1.8m in the prior year.
Network and reorganisation costs
During the period we have incurred £1.0m of integration and network reorganisation costs. The largest amount incurred in
the period relates to redundancy costs supporting the delivery of cost savings.
Release of property provision
There were no property provision releases in the period to 28 February 2015. During the 6 month period to 28 February 2014
the Group released £0.6m relating to historic reversionary lease provisions following the settlement of two historic
claims.
Acquisition costs
Acquisition costs incurred in the period to 28 February 2015 related to the acquisition of Tuffnells which include £2.8m of
deferred consideration. Details of the acquisition are included in note 12. Acquisition costs in the period to 28 February
2014 are predominantly the final apportionment of deferred consideration from the acquisition of The Consortium in April
2012.
Impairment of acquired intangibles
There was no impairment recognised in the period to 28 February 2015. During the period to 28 February 2014 the carrying
value of acquired intangibles from the acquisition of Blackwells customer relationships in May 2013 was reviewed and as a
result of lower than anticipated sales conversion an amount of £0.5m was written off.
Amortisation of acquired intangibles
Amortisation of £2.7m increased due to the acquisition of Tuffnells and leaves a balance of £70.6m to be amortised over
future years.
5 Retirement Benefit Obligation
Defined benefit pension schemes
The Group operates four defined benefit schemes, of which the WH Smith Pension Trust (the 'Pension Trust') represents over
93% of the total obligation at 28 February 2015 (28 February 2014: 96%). On acquisition of the Consortium, the Group
acquired the assets and liabilities in respect of two other defined benefit schemes (the 'Consortium CARE' and 'Platinum'
schemes). The Group acquired the assets and liabilities of Tuffnells Parcels Express Pension Scheme on its acquisition of
The Big Green Parcel Holding Company Limited on 19 December 2014.
The amounts recognised in the balance sheet are as follows:
£m As at Feb 2015 As at Feb 2014 As at Aug 2014
Present value of defined benefit obligation (487.9) (428.0) (450.6)
Fair value of assets 566.6 483.2 522.6
Net surplus 78.7 55.2 72.0
Amounts not recognised due to asset limit (84.4) (58.1) (75.7)
Additional liability recognised due to minimum funding requirements (15.6) (18.8) (17.3)
Pension liability (21.6) (21.9) (21.3)
Pension asset 0.3 0.2 0.3
The primary defined benefit pension scheme (the Smiths News Section of the WH Smith Pension Trust) has an IAS 19 surplus of
£84.4m at 28 February 2015 (FY2014: £75.7m surplus) which the Group does not recognise in the accounts as the investment
policy being used means that the amount available on a reduction of future contributions is expected to be £nil (FY2014:
£nil). The valuation of the defined benefit schemes for the IAS 19 (revised) disclosures have been carried out by
independent qualified actuaries based on updating the most recent funding valuations of the respective schemes, adjusted as
appropriate for membership experience and changes in the actuarial assumptions.
The actuarial valuation for funding purposes produces a scheme deficit due to different assumptions and calculation
methodologies used compared to those under IAS 19, most notably the use of a discount rate that reflects the actual
investment strategy, rather than corporate bond yields as required under IAS 19.
In the year to 31 August 2013, the triennial actuarial valuation of the Smiths News section of the WH Smith Pension Trust,
effective 31 March 2012 was agreed at £33.0m. The deficit in the scheme was £23.0m when last estimated at 19 June 2013,
reduced from £50.0m at the last valuation date of March 2009. The next valuation date for the scheme will be 31 March
2015.
Future cash contributions by the Group to address the deficit will be £4.1m per annum, through to March 2019. The Group
recognises the present value of these agreed contributions as a pension liability of £15.6m (FY2014 £17.3m).
Other defined benefit schemes
The actuarial valuation for funding purposes of the Consortium CARE scheme due on 31 December 2013 was completed on 24
March 2015, showing an actuarial scheme deficit of £1.5m (December 2010: £1.3m). The Platinum scheme's 31 December 2012
funding valuation has now been finalised and produced a small surplus, the Group continues to contribute to the on-going
accrual of benefits.
The principal long-term assumptions used to calculate scheme liabilities on all Group schemes are:
% p.a. 6 months to Feb 2015 6 months to Feb 2014 12 months to Aug 2014
Discount rate 3.40% 4.30% 3.85%
Inflation assumptions - CPI 2.05% 2.35% 2.25%
Inflation assumptions - RPI 3.05% 3.35% 3.25%
A summary of the movements in the net balance sheet asset /(liability) and amounts recognised in the Group Income Statement
and Other Comprehensive Income are as follows:
£m Fair value of scheme assets Defined benefit obligation Impact of IFRIC 14 on defined benefit pension schemes Net asset / (liability) on balance sheet
At 31 August 2013 469.6 (419.2) (73.5) (23.1)
Current service cost - (0.1) - (0.1)
Administration expenses - (0.1) - (0.1)
Interest cost - (9.1) (1.6) (10.7)
Interest income on scheme assets 10.3 - - 10.3
Total amount recognised in income statement 10.3 (9.3) (1.6) (0.6)
Return on plan assets excluding amounts included in net interest 9.1 - - 9.1
Actuarial losses on scheme liabilities - (7.4) - (7.4)
Change in surplus not recognised - - (1.8) (1.8)
Amount recognised in other comprehensive income 9.1 (7.4) (1.8) (0.1)
Employer contributions 2.1 - - 2.1
Employee contributions - - - -
Benefit payments (7.9) 7.9 - -
Amounts included in cash flow statement (5.8) 7.9 - 2.1
Other changes - - - -
At 28 February 2014 483.2 (428.0) (76.9) (21.7)
Current service cost (1.3) 1.3 - -
- More to follow, for following part double click ID:nRSV9157KcRecent news on Smiths News
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