REG - Spirax-Sarco Engng - Half Year Results <Origin Href="QuoteRef">SPX.L</Origin> - Part 2
05/08/2015 07:00
- Part 2: For the preceding part double click ID:nRSE1077Va
403,534
Profit for the period - - - 44,269 44,269 45 44,314
Other comprehensive (expense)/income for the period
Foreign exchange translation differences - - (18,935) - (18,935) 11 (18,924)
Remeasurement gain on post-retirement benefits - - - 5,471 5,471 - 5,471
Deferred tax on remeasurement gain on post-retirement benefits - - - (724) (724) - (724)
Profit on cash flow hedges reserve - - 5 - 5 - 5
Total other comprehensive (expense) for the period - - (18,930) 4,747 (14,183) 11 (14,172)
Total other comprehensive income for the period - - (18,930) 49,016 30,086 56 30,142
Dividends paid - - - (30,960) (30,960) (141) (31,101)
Equity settled share plans net of tax - - - 1,589 1,589 - 1,589
Issue of share capital 57 2,397 - - 2,454 - 2,454
Employee Benefit Trust Shares 4 - 392 - 396 - 396
Balance at 30th June 2014 19,629 62,351 (7,064) 331,382 406,298 716 407,014
407,014
For the year ended 31st December 2014 ShareCapital£000 SharePremiumAccount£000 OtherReserves£000 Retainedearnings£000 Equityshareholders'funds£000 Non-controllinginterest£000 Totalequity£000
Balance at 1st January 2014 19,568 59,954 11,474 311,737 402,733 801 403,534
Profit for the year - - - 100,327 100,327 246 100,573
Other comprehensive (expenses)/income
Foreign exchange translation differences - - (15,155) - (15,155) 22 (15,133)
Remeasurement loss on post-retirement benefits - - - (5,159) (5,159) - (5,159)
Deferred tax on remeasurement loss on post-retirement benefits - - - (258) (258) - (258)
Loss on cash flow hedges reserve - - (232) - (232) - (232)
Total other comprehensive (expense) for the year - - (15,387) (5,417) (20,804) 22 (20,782)
Total other comprehensive income for the year - - (15,387) 94,910 79,523 268 79,791
Contributions by and distributions to owners of the Company
Dividends paid - - - (45,715) (45,715) (190) (45,905)
Equity settled share plans net of tax - - - 1,864 1,864 - 1,864
Issue of share capital 110 5,113 - - 5,223 - 5,223
Employee Benefit Trust Shares (56) - (2,573) - (2,629) - (2,629)
Balance at 31st December 2014 19,622 65,067 (6,486) 362,796 440,999 879 441,878
CASH FLOW STATEMENT
Notes Six monthsto 30th June2015£'000 Six monthsto 30thJune2014£'000 Year ended31st December2014£'000
Cash flows from operating activities
Profit before taxation 57,330 63,454 144,794
Depreciation, amortisation and impairment 16,612 13,207 26,799
Loss on disposal of Associate 1,790 - -
Share of profit of Associates (147) (338) 318
Equity settled share plans 1,476 1,795 2,374
Net finance income 577 1,542 2,983
Operating cash flow before changes in working capital and provisions 77,638 79,660 177,268
Change in trade and other receivables 9,888 8,751 (20,032)
Change in inventories (4,956) (9,771) 1,111
Change in provisions and post-retirement benefits (605) (2,645) (4,870)
Change in trade and other payables (4,996) (6,097) 4,398
Cash generated from operations 76,969 69,898 157,875
Interest paid (663) (1,120) (2,299)
Income taxes paid (24,238) (24,449) (41,915)
Net cash from operating activities 52,068 44,329 113,661
Cash flows from investing activities
Purchase of property, plant & equipment (11,313) (16,517) (27,032)
Proceeds from sale of property, plant & equipment 1,198 793 2,980
Purchase of software & other intangibles (2,000) (2,069) (4,647)
Development expenditure capitalised (1,289) (891) (2,632)
Acquisition of businesses (7,087) (9,087) (9,984)
Bank deposits 24,626 - 9,038
Interest received 1,388 976 2,246
Dividends received - - 796
Net cash used in investing activities 5,523 (26,795) (29,235)
Cash flows from financing activities
Proceeds from issue of Share Capital 1,892 2,454 5,223
Sale of associate 6,465 - -
Employee Benefit Trust Share purchase - - (3,005)
Repaid borrowings 8 (57,000) (1,703) (8,995)
New borrowings 8 807 11,000 -
Change in finance lease liabilities 8 (154) (96) (241)
Dividends paid (including minorities) (34,226) (31,101) (45,905)
Net cash used in financing activities (82,216) (19,446) (52,923)
Net change in cash and cash equivalents 8 (24,625) (1,912) 31,503
Net cash and cash equivalents at beginning of period 8 117,520 82,608 82,608
Exchange movement 8 (6,423) (5,061) 3,409
Net cash and cash equivalents at end of period 8 86,472 75,635 117,520
Bank deposits 8 - 31,103 24,437
Borrowings and finance leases 8 (32,993) (108,267) (89,464)
Net Cash/(debt) at the end of the period 8 53,479 (1,529) 52,493
(32,993)
(108,267)
(89,464)
Net Cash/(debt) at the end of the period
8
53,479
(1,529)
52,493
NOTES TO THE ACCOUNTS
1. BASIS OF PREPARATION
Spirax-Sarco Engineering plc is a company domiciled in the UK. The half year
condensed consolidated financial statements of Spirax-Sarco Engineering plc
and its subsidiaries (the Group) have been prepared in accordance with IAS 34
Interim Financial Reporting as adopted by the EU. The accounting policies
applied are consistent with those set out in the 2014 Spirax-Sarco Engineering
plc Annual Report.
These condensed consolidated half year financial statements do not include all
the information required for full annual statements and should be read in
conjunction with the 2014 Annual Report. The comparative figures for the year
ended 31st December 2014 do not constitute the Group's statutory accounts for
that financial year as defined in Section 434 of the Companies Act 2006. The
consolidated statutory accounts for Spirax-Sarco Engineering plc in respect of
the year ended 31st December 2014 have been reported on by the Company's
auditors and delivered to the registrar of companies. The report of the
auditors was (i) unqualified, (ii) did not include a reference to any matters
to which the auditors drew attention by way of emphasis without qualifying
their report, and (iii) did not contain a statement under Section 498 (2) or
(3) of the Companies Act 2006.
The consolidated financial statements of the Group in respect of the year
ended December 2014 are available upon request from Mr A. J. Robson, General
Counsel and Company Secretary, Charlton House, Cheltenham, Gloucestershire,
GL53 8ER, United Kingdom or on www.spiraxsarcoengineering.com.
The financial statements for the six months ended 30th June 2015, which have
not been audited or reviewed by the auditors, were authorised by the Board on
4th August 2015.
The interim report has been prepared solely to provide additional information
to shareholders as a body to assess the Group's strategies and the potential
for those strategies to succeed. This interim report should not be relied
upon by any other party or for any other purpose.
GOING CONCERN
Having made enquiries and reviewed the Group's plans and available financial
facilities, the Board has a reasonable expectation that the Group has adequate
resources to continue its operational existence for the foreseeable future.
For this reason, it continues to adopt the going concern basis in preparing
the condensed consolidated financial statements. There are no key
sensitivities identified in relation to this conclusion.
NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED
There are a number of new standards, amendments to standards and
interpretations that are not yet effective for the period ended 30th June 2015
and have, therefore, not been applied in preparing these condensed
consolidated interim financial statements. None of these are anticipated to
have a significant impact on the consolidated income statement or consolidated
statement of financial position.
SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
The preparation of interim financial statements in conformity with adopted
IFRS requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amount of
assets and liabilities, income and expense. Actual results may differ from
these estimates. In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation uncertainty were
the same as those that applied to the consolidated financial statements for
the year ended 31st December 2014.
The Directors have considered the facts and circumstances as at 30th June 2015
and concluded that there are no indicators of impairments that require an
impairment review to be undertaken on goodwill at the interim statement of
financial position date. The annual impairment review will be undertaken later
in 2015 consistent with the timing in previous years.
CAUTIONARY STATEMENTS
This interim report contains forward-looking statements. These have been made
by the Directors in good faith based on the information available to them up
to the time of their approval of this report. The Directors can give no
assurance that these expectations will prove to have been correct. Due to the
inherent uncertainties, including both economic and business risk factors
underlying such forward-looking information, actual results may differ
materially from those expressed or implied by these forward-looking
statements. The Directors undertake no obligation to update any
forward-looking statements, whether as a result of new information, future
events, or otherwise.
RESPONSIBILITY STATEMENT
The Directors confirm that to the best of their knowledge:
· this financial information has been prepared in accordance with IAS 34
Interim Financial Reporting as adopted by the EU;
· the interim management report includes a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
of important events that have occurred during the first six months of the
financial year and their impact on the condensed financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year.
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year that have materially affected the financial position or
performance of the entity during that period, and any changes in the related
party transactions described in the last annual report that could do so.
The Directors of Spirax-Sarco Engineering plc on 4th August 2015 are the same
as those listed in the 2014 Annual Report on pages 60 and 61.
N J Anderson
Group Chief Executive
4th August 2015
D J Meredith
Finance Director
4th August 2015
On behalf of the Board
2. SEGMENTAL REPORTING
As required by IFRS 8, Operating Segments, the following segmental information
is presented in a consistent format with management information considered by
the Board.
Analysis by location of operation
Six months to 30th June 2015 Grossrevenue£'000 Inter-segmentrevenue£'000 Revenue£'000 Totaloperatingprofit£'000 Adjustedoperatingprofit£'000 Adjustedoperatingmargin%
Europe, Middle East & Africa 128,636 16,807 111,829 20,648 21,294 19.0%
Asia Pacific 76,489 2,210 74,279 15,234 15,492 20.9%
Americas 63,989 2,941 61,048 7,287 11,760 19.3%
Steam Specialties business 269,114 21,958 247,156 43,169 48,546 19.6%
Watson-Marlow 72,823 - 72,823 20,743 21,794 29.9%
Corporate expenses (4,499) (4,499)
341,937 21,958 319,979 59,413 65,841 20.6%
Intra-Group (21,958) (21,958)
Total 319,979 - 319,979 59,413 65,841 20.6%
Net finance expense (577) (577)
Share of profit/(loss) of Associates (1,506) 247
Profit before tax 57,330 65,511
Six months to 30th June 2014 Grossrevenue£'000 Inter-segmentrevenue£'000 Revenue£'000 Totaloperatingprofit£'000 Adjustedoperatingprofit£'000 Adjustedoperatingmargin%
Europe, Middle East & Africa 138,354 19,089 119,265 23,772 24,218 20.3%
Asia Pacific 78,424 2,881 75,543 16,754 16,754 22.2%
Americas 62,566 2,742 59,824 10,954 11,862 19.8%
Steam Specialties business 279,344 24,712 254,632 51,480 52,834 20.7%
Watson-Marlow 64,536 8 64,528 18,135 19,272 29.9%
Corporate expenses (4,957) (4,957)
343,880 24,720 319,160 64,658 67,149 21.0%
Intra-Group (24,720) (24,720) - - -
Total 319,160 - 319,160 64,658 67,149 21.0%
Net finance expense (1,542) (1,542)
Share of profit of Associates 338 718
Profit before tax 63,454 66,325
Year ended 31st December 2014 Grossrevenue£'000 Inter-segmentrevenue£'000 Revenue£'000 Totaloperatingprofit£'000 Adjustedoperatingprofit£'000 Adjustedoperatingmargin%
Europe, Middle East & Africa 274,271 38,039 236,232 44,855 45,929 19.4%
Asia Pacific 182,556 4,894 177,662 46,191 46,418 26.1%
Americas 131,869 5,681 126,188 26,478 27,961 22.2%
Steam Specialties business 588,696 48,614 540,082 117,524 120,308 22.3%
Watson-Marlow 138,195 138,195 41,428 43,499 31.5%
Corporate expenses (10,857) (10,857)
726,891 48,614 678,277 148,095 152,950 22.5%
Intra-Group (48,614) (48,614)
Total 678,277 - 678,277 148,095 152,950 22.5%
Net finance expense (2,983) (2,983)
Share of operating profit/(loss) of Associates (318) 1,151
Profit before tax 144,794 151,118
Non-operational items
The Group uses adjusted figures as key performance measures in addition to
those reported under adopted IFRS. The Group's management believes these
measures provide valuable additional information for users of the financial
statements in understanding the Group's performance. Adjusted operating
profit excludes certain non-operational items which are analysed below:
Six months to30th June 2015£'000 Six months to30th June 2014£'000 Year ended31st Dec. 2014£'000
Amortisation and impairment of acquisition-related intangible assets (2,240) (2,020) (4,096)
USA meter manufacturing facility closure costs (3,814) - -
Acquisition and disposal costs (374) (471) (759)
(6,428) (2,491) (4,855)
Share of profit of Associates
An analysis of the share of profit of Associates is shown below:
Six months to30th June 2015£'000 Six months to30th June 2014£'000 Year ended31st Dec. 2014£'000
Share of adjusted profit 247 718 1,151
Non-operational items
Amortisation and impairment of acquisition-related intangible assets (100) (380) (1,125)
Impairment of tangible assets - - (344)
Final adjustment to previous impairment write offs 137 - -
Exchange translation differences recycled under IAS 21 (1,790) - -
Total non-operational items (1,753) (380) (1,469)
Total Associates (1,506) 338 (318)
Net assets
The total assets and liabilities of the four segments have not been disclosed
as there has been no material change in the amounts disclosed in the 2014
Annual Report and Accounts.
Capital additions and depreciation, amortisation and impairment
Six month30th June 2015 Six month30th June 2014 Year ended31st December 2014
Capital additions £'000 Depreciation, amortisationandimpairment£'000 Capital additions £'000 Depreciation, amortisationandimpairment£'000 Capital Additions £'000 Depreciation, amortisation andimpairment£'000
Europe, Middle East & Africa 5,997 5,659 6,818 5,119 15,301 10,476
Asia Pacific 1,967 2,941 7,144 2,385 8,657 5,144
Americas 1,720 4,776 2,351 3,035 4,159 5,335
Watson-Marlow 5,201 3,236 6,187 2,668 11,271 5,844
Group total 14,885 16,612 22,500 13,207 39,388 26,799
Capital additions include property, plant and equipment at 30th June 2015 of
£8,805,000; at 30th June 2014 of £16,144,000; and at 31st December 2014 of
£26,876,000; and other intangible assets at 30th June 2015 of £6,080,000; at
30th June 2014 of £6,356,000; and at 31st December 2014 of £12,512,000.
Depreciation, amortisation and impairment includes amortisation of
acquisition-related intangible assets at 30th June 2015 of £2,240,000; at 30th
June 2014 of £2,020,000; and at 31st December 2014 of £4,096,000 and
impairment at 30th June 2015 of £1,024,000 of intangible assets and £981,000
of tangible assets in respect of the USA meter manufacturing closure costs
(2014: nil).
3. NET FINANCING INCOME AND EXPENSE
Six monthsto 30th June2015£'000 Six monthsto 30th June2014£'000 Year ended31st December 2014£'000
Financial expenses
Bank and other borrowing interest payable (663) (1,120) (2,310)
Net interest on pension scheme liabilities (1,302) (1,398) (2,919)
(1,965) (2,518) (5,229)
Financial income
Bank interest receivable 1,388 976 2,246
Net financing expense (577) (1,542) (2,983)
Net pension scheme financial expense (1,302) (1,398) (2,919)
Net bank interest 725 (144) (64)
Net financing expense (577) (1,542) (2,983)
(577)
(1,542)
(2,983)
4. TAXATION
Taxation has been estimated at the rate expected to be incurred in the full
year
Six monthsto 30th June2015£'000 Six monthsto 30th June2014£'000 Year ended31st December 2014£'000
United Kingdom corporation tax 417 67 2,534
Foreign taxation 18,855 18,923 42,480
Deferred taxation (1,341) 150 (793)
17,931 19,140 44,221
17,931
19,140
44,221
5. EARNINGS PER SHARE
Six monthsto 30th June2015 Six monthsto 30th June2014 Year ended31st December 2014
Profit attributable to equity shareholders (£'000) 39,382 44,269 100,327
Weighted average shares in issue 75,463,654 75,452,395 75,532,018
Dilution 302,944 393,906 455,530
Diluted weighted average shares in issue 75,766,598 75,846,301 75,987,548
Basic earnings per share 52.2p 58.7p 132.8p
Diluted earnings per share 52.0p 58.4p 132.0p
Adjusted profit attributable to equity shareholders (£'000) 45,646 46,532 106,015
Basic adjusted earnings per share 60.5p 61.7p 140.4p
Diluted adjusted earnings per share 60.2p 61.4p 139.5p
61.4p
139.5p
The dilution is in respect of unexercised share options and the Performance
Share Plan.
6. DIVIDENDS
Six monthsto 30th June2015£'000 Six monthsto 30th June2014£'000 Year ended31st December2014£'000
Amounts paid in the period
Final dividend for the year ended 31st December 2014 of 45.0p (2013: 41.0p) per share 34,089 30,960 30,960
Interim dividend for the year ended 31st December 2014 of 19.5p (2013: 18.0p) per share - - 14,755
Total dividends paid 34,089 30,960 45,715
Amounts arising in respect of the period
Interim dividend for the year ended 31st December 2015 of 20.8p (2014: 19.5p) per share 15,202 14,733 14,755
Final dividend for the year ended 31st December 2014 of 45.0p (2013: 41.0p) per share - - 34,134
Special dividend for the year ended 31st December 2014 of 120.0p (2013: nil) per share - - 91,024
Total dividends arising 15,202 14,733 139,913
14,733
139,913
No scrip alternative to the cash dividend is being offered in respect of the
2015 interim dividend.
7. POST-RETIREMENT BENEFITS
The Group is accounting for pension costs in accordance with IAS 19.
The disclosures shown here are in respect of the Group's Defined Benefit
Obligations. Other plans operated by the Group were either Defined
Contribution plans or were deemed immaterial for the purposes of IAS 19
reporting. Full IAS 19 disclosure for the year ended 31st December 2014 is
included in the Group's Annual Report.
The amounts recognised in the balance sheet are as follows:
Total
At 30th June 2015£'000 At 30th June 2014£'000 At 31st December2014£'000
Retirement benefit liability recognised in the balance sheet (74,970) (64,889) (75,779)
Related deferred tax asset 16,900 16,905 17,703
Net pension liability (58,070) (47,984) (58,076)
8. ANALYSIS OF CHANGES IN NET CASH
At1st Jan 2015£'000 Cash flow £'000 Exchangemovement£'000 At30th June 2015 £'000
Current portion of long-term borrowings (298) (298)
Non-current portion of long-term borrowings (49,096) (26,369)
Short-term borrowing (40,070) (6,326)
Total borrowings (89,464) 56,347 124 (32,993)
Comprising:
Borrowings (88,637) 56,193 92 (32,352)
Finance leases (827) 154 32 (641)
(89,464) 56,347 124 (32,993)
Cash and cash equivalents 117,981 (24,879) (6,477) 86,625
Bank overdrafts (461) 254 54 (153)
Net cash and cash equivalents 117,520 (24,625) (6,423) 86,472
Bank deposits 24,437 (24,626) 189 -
Net cash 52,493 7,096 (6,110) 53,479
9. CAPITAL EMPLOYED
The Board uses certain non-statutory measures to help it effectively monitor
the performance of the Group. Capital employed is a key measure.
At 30th June2015£'000 At 30th June2014£'000 At 31st December 20102014£'000
Capital Employed
Property, plant and equipment 164,705 177,116 176,668
Prepayments 477 180 402
Inventories 98,819 111,306 98,007
Trade receivables 133,170 132,596 155,696
Other current assets 25,024 21,153 23,973
Tax recoverable 4,594 4,027 4,420
Capital employed element of business held for sale 4,666 - -
Trade and other payables (76,316) (80,443) (90,754)
Current tax payable (12,338) (11,184) (22,175)
Capital employed 342,801 354,751 346,237
346,237
10. RELATED PARTY TRANSACTIONS
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note.
Full details of the Group's other related party relationships, transactions
and balances are given in the Group's financial statements for the year ended
31st December 2014. There have been no material changes in these
relationships in the period up to the end of this report.
No related party transactions have taken place in the first half of 2015 that
have materially affected the financial position or the performance of the
Group during that period.
11. PURCHASE OF BUSINESSES
Acquisitions
2015 Bookvalue£'000 FVadj£'000 Fair 2010 value£'000
Non-current assets
Property, plant and equipment 328 328
Other tangible assets 69 69
Intangibles 2,935 2,935
397 2,935 3,332
Current assets
Inventories 1,351 1,351
Trade receivables 747 747
Other receivables 60 60
Cash 449 449
Total assets 3,004 2,935 5,939
Current liabilities
Trade payables 391 391
Other payables and accruals 160 160
Deferred tax 959 959
Total liabilities 551 959 1,510
Total net assets 2,453 1,976 4,429
Goodwill 3,554
Total 7,983
Satisfied by Cash paid 7,412
Deferred consideration 571
7,983
Reconciliation to the Cash Flow Statement:
Cash paid for 2015 businesses acquired 7,412
Less cash acquired (449)
Deferred consideration for prior years' acquisitions 124
Cash outflow 7,087
7,087
1. The acquisition of the Asepco Corporation, a company specialising in the
design and production of high purity tanks and process valves, and
magnetically driven mixers for the biopharmaceutical industry based in the USA
was completed on 8th April 2015. The acquisition method of accounting has
been used. Consideration of £7,005,000 was paid on completion with a further
£221,000 deferred. Separately identified intangibles are recorded as part of
the fair value adjustment. The goodwill recognised represents the skilled
workforce acquired and the synergies that can be achieved by being part of the
Spirax Group. 100% of voting rights were acquired. Goodwill arising is not
expected to be tax deductible. Asepco has generated £1,100,000 of revenue and
£180,000 of pre-tax profit since acquisition. Had acquisition been made on
1st January 2015, the revenue and pre-tax profit would have been approximately
double these figures.
2. The acquisition of Valve and Control Engineering Ltd. (VCE),
specialising in boiler services and certifications, based in the UK was
completed on 14th April 2015. The acquisition method of accounting has been
used. Consideration of £407,000 was paid on completion with a further
£350,000 deferred and contingent on future performance. Separately identified
intangibles are recorded as part of the fair value adjustment. The goodwill
recognised represents the skilled workforce acquired and the opportunity to
sell to a wider customer base. Goodwill arising is not expected to be tax
deductible. VCE has generated £150,000 of revenue and £50,000 of pre-tax
profit since acquisition. Had the acquisition been made on 1st January 2015,
the revenue and pre-tax profit would have been approximately double these
figures.
£127,000 of acquisition costs were incurred in relation to these acquisitions.
The values above are provisional. The acquired intangibles relate to
customer relationships, technology based assets and marketing based assets.
12. ASSETS HELD FOR SALE
On 3rd August 2015 M&M International Srl based in Italy was sold by the Group.
This operation has been classified as held for sale in the balance sheet at
30th June 2015. The transaction details are explained more fully in a
separate announcement dated 4th August 2015. The proceeds of disposal exceed
the book value of the related net assets and accordingly no impairment losses
have been recognised on the classification of this operation as held for
sale.
The major classes of assets and liabilities classified as held for sale are as
follows:
At 30th June2015£'000
Goodwill and other intangibles 2,610
Property, plant and equipment 3,296
Inventories 996
Trade receivables 1,155
Deferred tax assets 831
Other current assets 382
Total assets of business held for sale 9,270
Trade and other payables 1,136
Deferred tax liabilities 837
Post-retirement benefits 454
Other payables 106
Total liabilities associated with assets classified as held for sale 2,533
Net assets of business held for sale 6,737
13. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table compares amounts and fair values of the Group's financial
assets and liabilities:
At 30th June 2015 At 30th June 2014 At 31st December 2014
CarryingValue£'000 FairValue£'000 CarryingValue£'000 FairValue£'000 CarryingValue£'000 FairValue£'000
Financial assets
Cash and cash equivalents 86,625 86,625 79,318 79,318 117,981 117,981
Bank deposits - - 31,103 31,103 24,437 24,437
Trade and other receivables 142,440 142,440 142,808 142,808 168,721 168,721
Total financial assets 229,065 229,065 253,229 253,229 311,139 311,139
Financial liabilities
Bank loans 32,352 32,352 107,295 107,295 88,637 88,637
Finance lease obligations 641 644 972 977 827 831
Bank overdrafts 153 153 3,683 3,683 461 461
Trade payables 20,853 20,853 27,188 27,188 27,670 27,670
Other payables 23,925 23,925 25,500 25,500 25,976 25,976
Total financial liabilities 77,924 77,927 164,638 164,643 143,571 143,575
There are no other assets or liabilities measured at fair value on a recurring
or non-recurring basis for which fair value is disclosed.
Derivative financial instruments are measured at fair value. Fair value of
derivative financial instruments is calculated based upon discounted cash flow
analysis using the appropriate market information for the duration of the
instruments.
The Group uses forward currency contracts to manage its exposure to movements
in foreign exchange rates. The forward contracts are designated as hedge
instruments in a cash flow hedging relationship. At 30th June 2015 the Group
had contracts outstanding to purchase £2,508,000 with US Dollars, £300,000
with Korean Won, £120,000 with YEN and E1,634,000 with US Dollars. The fair
values at the end of the reporting period were £33,000 (31st December 2014
£232,000). The fair value of derivative financial instruments falls into the
level 2 category of the fair value hierarchy in accordance with IFRS 7.
14. EXCHANGE RATES
Set out below is an additional disclosure (not required by IAS 34) that
highlights movements in a selection of average exchange rates between
half-year 2015 and half-year 2014.
Averagehalf-year2015 Averagehalf-year2014 Change%
Bank of England sterling index 90.6 86.4 -5%
US$ 1.53 1.67 +9%
Euro 1.36 1.22 -10%
RMB 9.53 10.33 +8%
Won 1,685 1,751 +4%
Real 4.53 3.84 -15%
Yen 185 172 -7%
Australian $ 1.96 1.83 -7%
Rouble 89.74 58.28 -35%
Turkish Lira 3.92 3.61 -8%
This information is provided by RNS
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