REG - Connect Group Plc - Unaudited Interim Results 6 mths ended 28 Feb 2017 <Origin Href="QuoteRef">CNCTC.L</Origin> - Part 3
25/04/2017 07:06
- Part 3: For the preceding part double click ID:nRSY1857Db
credit of £0.7m was incurred in the period from a commutation of 330 Smiths News
pension scheme members.
5 Retirement Benefit Obligation
Defined benefit pension schemes
The Group operates four defined benefit schemes, of which the WH Smith Pension Trust represents 93% of the total obligation
at 28 February 2017 (29 February 2016: 93%). 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 2017 As at Feb 2016 As at Aug 2016
Present value of defined benefit obligation (509.7) (403.8) (531.5)
Fair value of assets 639.8 540.8 671.9
Net surplus 130.1 137.0 140.4
Amounts not recognised due to asset limit (139.6) (139.9) (151.3)
Additional liability recognised due to minimum funding requirements (10.6) (11.9) (10.3)
Held for sale 7.2 - -
Pension liability (12.9) (15.2) (21.5)
Pension asset - 0.4 0.3
The primary defined benefit pension scheme (the Smiths News Section of the WH Smith Pension Trust) has an IAS 19 surplus of
£139.6m at 28 February 2017 (FY2016: £151.3m surplus) which the Group does not recognise in the accounts as the investment
policy adopted means that the amount available on a reduction of future contributions is expected to be £nil (FY2016:
£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.
The triennial valuation as at 31 March 2015 was completed in November 2016. The actuarial valuation of the Smiths News
section of the WH Smith Pension Trust at 31 March 2015 was a deficit of £17.5m. Future cash contributions by the Group to
address the deficit will be £4.1m per annum to March 2018 and thereafter at £3.3m per annum until March 2020. The Group
recognises the present value of these agreed contributions as a pension liability of £10.6m (FY2016: £10.3m).
Other defined benefit schemes
The actuarial valuation for funding purposes of the Consortium CARE scheme as at 31 December 2013 was a scheme deficit of
£1.5m. The Platinum scheme's 31 December 2013 funding valuation showed no deficit. The triennial actuarial valuation of the
Tuffnells Parcels Express scheme as at 1 April 2015 was a scheme deficit of £4.1m. Guaranteed Minimum Pension ("GMP")
equalisation is expected to lead to an increase in scheme liabilities at some future date for the Consortium Care and
Tuffnells Parcels Express Schemes.
The principal long-term assumptions used to calculate scheme liabilities on all Group schemes are:
% p.a. 6 months to Feb 2017 6 months to Feb 2016 12 months to Aug 2016
Discount rate 2.60% 3.80% 2.00%
Inflation assumptions - CPI 2.50% 2.00% 2.00%
Inflation assumptions - RPI 3.50% 3.00% 3.00%
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 Total
At 31 August 2015 563.3 (432.0) (149.4) (18.1)
Current service cost (0.1) (0.1) - (0.2)
Interest cost 10.5 (8.0) (2.8) (0.3)
Total amount recognised in income statement 10.4 (8.1) (2.8) (0.5)
Return on plan assets excluding amounts included in net interest (14.1) - - (14.1)
Actuarial gains on scheme liabilities - 14.9 - 14.9
Change in surplus not recognised - - 0.4 0.4
Amount recognised in other comprehensive income (14.1) 14.9 0.4 1.2
Employer contributions 2.6 - - 2.6
Employee contributions - - - -
Benefit payments (21.4) 21.4 - -
Amounts included in cash flow statement (18.8) 21.4 - 2.6
At 29 February 2016 540.8 (403.8) (151.8) (14.8)
Current service cost 0.1 (0.2) (0.1)
Interest cost 10.4 (7.8) (2.9) (0.3)
Administration expenses (0.1) - - (0.1)
Past service credits - 1.1 - 1.1
Total amount recognised in income statement 10.4 (6.9) (2.9) 0.6
Return on plan assets excluding amounts included in net interest 129.5 - - 129.5
Actuarial losses on scheme liabilities - (132.3) - (132.3)
Change in surplus not recognised excluding amounts recognised in net interest - - (6.9) (6.9)
Amount recognised in other comprehensive income 129.5 (132.3) (6.9) (9.7)
Employer contributions 2.7 - - 2.7
Employee contributions 0.1 (0.1) - -
Benefit payments (11.6) 11.6 - -
Amounts included in cash flow statement (8.8) 11.5 - 2.7
At 31 August 2016 671.9 (531.5) (161.6) (21.2)
£m Fair value of scheme assets Defined benefit obligation Surplus not recognised Total
At 31 August 2016 671.9 (531.5) (161.6) (21.2)
Current service cost (0.1) - (0.1)
Interest cost 6.5 (5.1) (1.6) (0.2)
Administrative expenses (0.1) - (0.1)
Past service cost/(credit) (3.4) 4.2 - 0.8
Total amount recognised in income statement 3.1 (1.1) (1.6) 0.4
Return on plan assets excluding amounts included in net interest (24.1) - - (24.1)
Actuarial gains on scheme liabilities - 9.2 - 9.2
Change in surplus not recognised - - 13.0 13.0
Amount recognised in other comprehensive income (24.1) 9.2 13.0 (1.9)
Employer contributions 2.5 0.1 - 2.6
Benefit payments (13.6) 13.6 - -
Amounts included in cash flow statement (11.1) 13.7 - 2.6
Reclassified as held for sale (17.6) 24.8 - 7.2
At 28 February 2017 622.2 (484.9) (150.2) (12.9)
Included within Current liabilities (4.1)
Included within Non-current liabilities (8.8)
The pension asset / liability at 28 February 2017 in respect of the Education & Care division is presented within assets /
liabilities held for sale in the balance sheet in accordance with IFRS 5 "Non Current Assets Held for Sale and Discontinued
Operations" (see note 9).
6 Income Tax Expense
£m 6 months to Feb 2017 6 months to Feb 2016 12 months to Aug 2016
Continuing operations Adjusted Exceptional items Total Adjusted Exceptional items Total Adjusted Exceptional items Total
Current tax 4.8 (0.5) 4.3 5.3 (0.2) 5.1 11.6 (1.2) 10.4
Adjustment in respect of prior years - - - (0.2) - (0.2) (0.6) (0.1) (0.7)
Total current tax charge 4.8 (0.5) 4.3 5.1 (0.2) 4.9 11.0 (1.3) 9.7
Deferred tax - current period - (0.6) (0.6) (0.2) (0.6) (0.8) (0.3) (1.5) (1.8)
Deferred tax - prior year - - - - - - (0.1) (0.1) (0.2)
Deferred tax - impact of rate change - (0.1) (0.1) 0.2 (0.6) (0.4) 0.3 (0.8) (0.5)
Total deferred tax charge - (0.7) (0.7) - (1.2) (1.2) (0.1) (2.4) (2.5)
Total tax charge relating to continuing operations 4.8 (1.2) 3.6 5.1 (1.4) 3.7 10.9 (3.7) 7.2
Effective tax rate 20.6% 20.6% 21.0% 20.8% 20.5% 20.7%
The effective income tax rate on adjusted profit before tax relating to continuing operations for the period was 20.6% (Feb
2016: 21.0%).
The effective income tax rate on statutory profit before tax relating to continuing operations for the period was 20.6%
(Feb 2016: 20.8%).
Reconciliation of the tax charge
£m 6 months to Feb 2017 6 months to Feb 2016 12 months to Aug 2016
Profit before tax - continuing operations 17.6 17.8 35.4
Tax on profit at the standard rate of UK corporation tax 19.6% (Aug 2016: 20.0%, Feb 2016: 20.0%) 3.5 3.8 7.1
Effect of non-tax deductible expenses 0.2 0.6 1.4
Effect of change in deferred tax rate (0.1) (0.4) (0.5)
Effect of higher/(lower) overseas tax rates - 0.1 0.1
Adjustment in respect of prior years - (0.2) (0.9)
Total tax charge recognised in the income statement relating to continuing operations 3.6 3.7 7.2
Tax charge/ (credit) to other comprehensive income
£mContinuing operations 6 months to Feb 2017 6 months to Feb 2016 12 months to Aug 2016
Current tax relating to the defined benefit pension scheme (0.2) (0.4) (0.8)
Current tax relating to share based payments - - (0.1)
Deferred tax relating to impact of change in tax rate 0.2 - 0.4
Deferred tax relating to derivative financial instruments - - (0.3)
Deferred tax relating to share based payments - 0.1 0.3
Deferred tax related to retirement benefit obligations - 0.4 0.2
Tax charge/(credit) recognised in other comprehensive income and directly in equity relating to continuing operations - 0.1 (0.3)
7 Dividends
Proposed dividends for the period 6 months to Feb 2017 6 months to Feb 2016 12 months to Aug 2016 6 months to Feb 2017 6 months to Feb 2016 12 months to Aug 2016
Per share Per share Per share £m £m £m
Final dividend - - 6.5p - - 15.9
Interim dividend 3.1p 3.0p 3.0p 7.6 7.3 7.3
3.1p 3.0p 9.5p 7.6 7.3 23.2
Recognised dividends for the period
Per share Per share Per share £m £m £m
Final dividend - prior year 6.5p 6.3p 6.3p 15.9 15.4 15.4
Interim dividend - current year - - 3.0p - - 7.3
6.5p 6.3p 9.3p 15.9 15.4 22.7
During the six month period to 28 February 2017, the final dividend for the year ended 31 August 2016 of 6.5p (Feb 2016:
6.3p) per ordinary share was paid to shareholders. In addition the directors have approved an interim dividend in respect
of the period ended 28 February 2017 of 3.1p per ordinary share (Feb 2016: 3.0p). This has not been included as a liability
in these condensed financial statements. This will be paid on 7 July 2017 to shareholders on the Register at the close of
business on 9 June 2017.
8 Earnings per share
6 months to Feb 2017 6 months to Feb 2016 12 months to Aug 2016
Earnings (£m) Weighted average number of shares million Pence per share Earnings (£m) Weighted average number of shares million Pence per share Earnings (£m) Weighted average number of shares million Pence per share
Weighted average number of shares in issue 247.2 245.2 245.9
Shares held by the ESOP (weighted) (2.2) (2.6) (2.5)
Basic earnings per share (EPS) 245.0 242.6 243.4
Continuing
Adjusted earnings attributable to ordinary shareholders 18.5 245.0 7.6p 19.4 242.6 8.0p 42.1 243.4 17.3p
Exceptional items (4.5) (5.3) (14.0)
Earnings attributable to ordinary shareholders 14.0 245.0 5.7p 14.1 242.6 5.8p 28.1 243.4 11.5p
Total - continuing and discontinued operations
Adjusted earnings attributable to ordinary shareholders 19.8 245.0 8.1p 21.5 242.6 8.9p 48.3 243.4 19.8p
Exceptional items (5.5) (6.2) (14.9)
Earnings attributable to ordinary shareholders 14.3 245.0 5.9p 15.3 242.6 6.3p 33.4 243.4 13.7p
Diluted earnings per share (EPS)
Effect of dilutive securities 3.6 6.5 3.8
Continuing
Diluted adjusted EPS 18.5 248.6 7.4p 19.4 249.1 7.8p 42.1 247.2 17.0p
Diluted EPS 14.0 248.6 5.6p 14.1 249.1 5.7p 28.1 247.2 11.4p
Total - continuing and discontinued operations
Diluted adjusted EPS 19.8 248.6 8.0p 21.5 249.1 8.6p 48.3 247.2 19.5p
Diluted EPS 14.3 248.6 5.8p 15.3 249.1 6.1p 33.4 247.2 13.5p
Dilutive shares increased the basic number of shares at February 2017 by 3.6m to 248.6m (Feb 2016: 249.1m) and resulted in
a diluted adjusted EPS of 7.4p, a decrease of 0.4p or 5.1% on prior year.
The calculation of diluted EPS reflects the potential dilutive effect of employee incentive schemes of 2.1m dilutive shares
(Feb 2016: 2.1m) and a weighted 1.5m shares being the time apportioned share capital relating to the deferred consideration
for the acquisition of The Big Green Parcel Holding Company Limited.
9 Discontinued Operations
In February 2017 the Group entered into an agreement in principle to sell the Connect Education & Care division with
completion subject to approval by the Competition & Markets Authority. Consequently, the activities of the division have
been disclosed as discontinued in accordance with IFRS 5 "Non Current Assets Held for Sale and Discontinued Operations".
The results of discontinued operations, which have been included within the consolidated income statement are as follows:
6 months to Feb 2017 6 months to Feb 2016 12 months to Aug 2016
£m
Adjusted Adjustments Total Adjusted Adjustments Total Adjusted Adjustments Total
Revenue 28.7 - 28.7 31.6 - 31.6 64.8 - 64.8
Expenses (27.0) (1.2) (28.2) (28.8) (1.3) (30.1) (57.0) (1.1) (58.1)
Operating profit 1.7 (1.2) 0.5 2.8 (1.3) 1.5 7.8 (1.1) 6.7
Finance costs - - - (0.1) - (0.1) (0.1) - (0.1)
Profit before tax 1.7 (1.2) 0.5 2.7 (1.3) 1.4 7.7 (1.1) 6.6
Income tax expense (0.4) 0.2 (0.2) (0.6) 0.4 (0.2) (1.5) 0.2 (1.3)
Profit from discontinued operations 1.3 (1.0) 0.3 2.1 (0.9) 1.2 6.2 (0.9) 5.3
During the period, discontinued operations contributed £3.4m (Feb 2016: £1.9m) (Aug 2016: £4.0m) to the Group's net
operating cash flows.
The major classes of assets and liabilities comprising the operations classified as held for sale are as follows:
Period ending 28 February 2017
Goodwill 20.9
Intangible assets 6.3
Property, plant and equipment 5.6
Pension asset 0.3
Inventories 7.2
Trade and other receivables 7.9
Cash and bank balances 5.7
Deferred tax asset 1.5
Total assets classified as held for sale 55.4
Trade and other payables (8.7)
Current tax liabilities (0.2)
Deferred tax liabilities (0.7)
Pension liability (7.5)
Total liabilities classified as held for sale (17.1)
Net assets of disposal group 38.3
10 Net Cash Inflow from Operating Activities
6 months to 6 months to 12 months to
£m Feb 2017 Feb 2016 Aug 2016
Adjusted continuing operating profit 26.6 27.8 59.9
Adjusted discontinued operating profit 1.7 2.8 7.8
Exceptional items before tax (6.9) (8.0) (18.8)
Operating profit 21.4 22.6 48.9
Share of profits of jointly controlled entities (0.2) (0.1) (0.3)
Pension funding (2.6) (2.6) (5.3)
Depreciation of property, plant and equipment 4.6 4.4 8.9
Amortisation and impairment of intangible assets 7.1 7.2 14.7
Share based payments 1.2 1.9 1.6
(Increase)/ decrease in inventories (7.8) 0.2 (0.3)
(Increase)/ decrease in receivables (23.1) 13.0 9.7
Increase/ (decrease) in payables 25.6 (18.3) (7.2)
Non cash pension and admin costs (0.6) - (0.6)
Income tax paid (5.3) (3.1) (8.5)
(Decrease) in provisions (0.5) (5.5) (3.4)
Net cash inflow from operating activities 19.8 19.7 58.2
During the period, discontinued operations contributed £3.4m (Feb 2016: £1.9m) (Aug 2016: £4.0m) to the Group's net
operating cash flows.
11 Contingent Liabilities
The Group has a potential liability that could crystallise in respect of previous assignments of leases where the liability
could revert to the Group if the lessee defaulted. Pursuant to the terms of the Demerger Agreement from WH Smith PLC in
2006, any such contingent liability, which becomes an actual liability will be apportioned between Connect Group PLC and WH
Smith PLC in the ratio 35:65 (the actual liability of Connect Group PLC in any 12 month period is limited to £5m). The
Group's share of such liability has an estimated future cumulative gross rental commitment at 28 February 2017 of £2.4m (31
August 2016: £2.8m).
12 Intangible Assets
Acquired intangible assets are written off over their expected useful life. Goodwill is not amortised, but tested annually
for impairment with the recoverable amount being determined from value in use calculations. The Group prepares cash flow
forecasts derived from the most recent budgets and forecasts for the following 3 years and extrapolates these cash flows on
an estimated growth rate of 1% into perpetuity. At 31 August 2016, the rate used to discount the forecast cash flows range
from 12.0% to 16.5%, being the Group's risk Adjusted pre-tax WACC, specific for each cash generating unit. The calculation
of value in use is sensitive to the discount rate and growth rates used. The Group conducted sensitivity analysis on the
impairment test of each CGU. The sensitised value in use exceeded the carrying value for all the CGUs, except the Books
CGU. The Books CGU had headroom on its carrying value of £2.6m prior to any sensitivities. An increase in the risk adjusted
post tax WACC from 12% to 13% for the Books CGU or a reduction in operating profits by 5% would cause the carrying value to
equal the recoverable amount.
Goodwill Acquired Intangibles Total
£m Onacquisition HY2017 HY2016 FY2016 Onacquisition HY2017 HY2016 FY2016 Onacquisition HY2017 HY2016 FY2016
Connect Books 17.6 17.6 17.6 17.6 12.7 2.3 3.5 2.9 30.3 19.9 21.1 20.5
Connect Media 5.7 5.7 5.7 5.7 2.6 0.6 1.0 0.8 8.3 6.3 6.7 6.5
Connect News - - - - 0.2 0.1 0.2 0.1 0.2 0.1 0.2 0.1
Connect Parcel Freight 52.1 52.1 52.1 52.1 58.1 43.2 50.1 46.7 110.2 95.3 102.2 98.8
Connect Education and care 20.9 20.9 20.9 20.9 10.4 4.1 5.4 4.7 31.3 25.0 26.3 25.6
Reclassified as held for sale - (20.9) - - - (4.1) - - - (25.0) - -
Total 96.3 75.4 96.3 96.3 84.0 46.2 60.2 55.2 180.4 121.6 156.5 151.5
Other intangibles 13.6 12.3 13.3
Reclassified as held for sale (2.2) - -
Total Intangible assets 133.0 168.8 164.8
13 Cash and Borrowings
Cash and borrowings by currency (sterling equivalent) are as follows:
£m Sterling Euro USD Other Total28 Feb 2017 At 29Feb 2016 At 31Aug 2016
Cash and cash equivalents 7.8 5.3 2.6 0.3 16.0 4.6 9.1
Term loan - disclosed within current liabilities (20.0) - - - (20.0) - (20.0)
Term loan - disclosed within non-current liabilities (69.4) - - - (69.4) (98.7) (79.1)
Revolving credit facility (67.0) - - - (67.0) (56.6) (41.0)
Total borrowings (156.4) - - - (156.4) (155.3) (140.1)
Net borrowings (148.6) 5.3 2.6 0.3 (140.4) (150.7) (131.0)
Total borrowings
Amount due for settlement within 12 months (87.0) - - - (87.0) (66.6) (61.0)
Amount due for settlement after 12 months (69.4) - - - (69.4) (88.7) (79.1)
(156.4) - - - (156.4) (155.3) (140.1)
Cash and cash equivalents comprise cash held by the Group and short-term bank deposits with an original maturity of three
months or less. The carrying amount of these assets approximates their fair value.
At 28 February 2017, the Group had £83.0m (29 February 2016: £94.7m) of undrawn committed borrowing facilities in respect
of which all conditions precedent had been met.
14 Financial Instruments
The fair value of interest rate swaps and forward currency contracts at the reporting date are based on market values of
equivalent instruments at the balance sheet date and are disclosed below. All derivative financial instruments are
classified as level 2 based upon the degree to which the fair value movements are observable. Level 2 fair value
measurements are defined as those derived from inputs other than quoted prices that are observable for the asset or
liability, either directly (prices from third parties) or indirectly (derived from third party prices).
Current Non-current
Feb 2017 Feb 2016 Aug 2016 Feb 2017 Feb 2016 Aug 2016
Derivatives that are being designated and effective as hedging instruments carried at fair value
Interest rate swaps - Liabilities (0.3) - - (0.8) (1.3) (1.5)
Forward foreign currency contracts - Assets - 0.1 0.1 - - -
15 Provisions
£m Reorganisation provisions Insurance and legal provisions Deferred contingent consideration Property provisions Total
At 1 September 2015 1.0 2.8 5.2 7.4 16.4
Additions 0.6 0.2 1.0 - 1.8
Release - (0.1) - (0.3) (0.4)
Utilised in period (1.3) - (5.2) (0.2) (6.7)
Unwinding of discount utilisation - - - 0.1 0.1
At 29 February 2016 0.3 2.9 1.0 7.0 11.2
At 1 March 2016: 0.3 2.9 1.0 7.0 11.2
Additions 0.7 1.7 0.9 0.8 4.1
Release (0.1) (0.1) - (1.0) (1.2)
Utilised in period (0.3) (0.2) 0.1 (0.4) (0.8)
Unwinding of discount utilisation - - - 0.1 0.1
At 31 August 2016 0.6 4.3 2.0 6.5 13.4
At 1 September 2016 0.6 4.3 2.0 6.5 13.4
Additions - 0.3 0.7 0.3 1.3
Utilised in period (0.4) (0.1) (1.0) (0.4) (1.9)
Unwinding of discount utilisation - - - 0.1 0.1
At 28 February 2017 0.2 4.5 1.7 6.5 12.9
£m Feb 2017 Feb 2016 Aug 2016
Included within current liabilities 6.3 5.2 8.5
Included within non-current liabilities 6.6 6.0 4.9
Total 12.9 11.2 13.4
The property provision represents the estimated future cost of the Group's onerous leases on non-trading properties and for
an estimate of dilapidations costs on certain properties. The provision has been discounted and this discount will be
unwound over the life of the leases.
Insurance and legal provisions represent the expected future costs of employer's liability, public liability and motor
accident claims and legal claims. In January 2016, an employee in our Parcel Freight division was fatally injured in an
accident at our Brierley Hill depot. Since the accident we have been assisting the Health & Safety Executive ("HSE") in its
investigation and gave evidence at a Coroner's inquest held in September 2016. The HSE recently notified the Group's legal
advisers that it intends to charge Tuffnells Parcels Express Limited with an offence under section 2(1) of the Health and
Safety at Work etc Act 1974 and the business now awaits the letter of summons. A provision of £1.5m (£1.5m August 2016) is
held in respect of a potential fine and associated legal costs.
Deferred contingent consideration relates to amounts provided in relation to the acquisition of The Big Green Parcel
Holding Company Limited (Tuffnells) on 19 December 2014 and Wordery on 27 August 2015, the cost being contingent upon
achievement of profit targets and the future employment of the former owners of the businesses. The contingent
consideration for Tuffnells will be satisfied by a mix of cash and shares with the maximum total remaining payable
amounting to £3.3m. The maximum contingent consideration payable in respect of Wordery is £3.3m. In aggregate £4.2m is held
on the balance sheet within provisions and share based payment reserves to satisfy contingent consideration payable.
16 Share Capital
(a) Share capital
£m Feb 2017 Feb 2016 Aug 2016
Issued and fully paid ordinary shares of 5p each
Opening balance at 1 September 12.3 12.2 12.2
Shares issued in the period/ year 0.1 0.1 0.1
Closing balance 12.4 12.3 12.3
During the period to 28 February 2017, 875,135 ordinary 5p shares were issued for a consideration of £1,270,770 resulting
in a share premium of £1,227,013. Of these 394,007 shares related to the deferred consideration shares payable to the
former owners of The Big Green Parcel Holding Company Limited following its acquisition in December 2014.
(b) Movement in share capital
Number (m) Ordinary shares of 5p each
At 1 September 2016 246.7
Issued in the period 0.9
At 28 February 2017 247.6
The holders of ordinary shares are entitled to receive dividends as declared from time-to-time and are entitled to one vote
per share at the meetings of the Company. The Company has one class of ordinary shares, which carry no right to fixed
income.
(c) Share premium
£m Feb 2017 Feb 2016 Aug 2016
Opening balance at 1 September 59.2 55.2 55.2
Share issues during the period/ year 1.2 3.9 4.0
Closing balance 60.4 59.1 59.2
17 Related Party Transactions
No related party transactions had a material impact on the financial performance in the period or financial position of the
Group at 28 February 2017. There have been no material changes to or material transactions with related parties as
disclosed in Note 32 of the Annual Report and Accounts for the year ended 31 August 2016.
18 Responsibility Statement
We confirm that to the best of our knowledge:
- the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial
Reporting';
- the interim management report includes a true and fair review of the information required by DTR 4.2.7R
(indication of important events during the first six months and description of principal risks and uncertainties for the
remaining six months of the year); and
- the interim management report includes a true and fair review of the information required by DTR 4.2.8R
(disclosure of related parties' transactions and changes therein).
By order of the Board.
Mark Cashmore David Bauernfeind
Group Chief Executive Chief Financial Officer
25 April 2017 25 April 2017
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Smiths News
See all newsREG - Smiths News PLC - Block listing Interim Review
AnnouncementREG - Smiths News PLC - Statement re Tuffnells Parcels Express Pension
AnnouncementREG - Smiths News PLC - Director/PDMR Shareholding
AnnouncementREG - Smiths News PLC - Result of Annual General Meeting
AnnouncementREG - Smiths News PLC - Trading Statement
Announcement