REG - Treatt PLC - Final Results <Origin Href="QuoteRef">TET.L</Origin> - Part 2
09/12/2014 07:10
- Part 2: For the preceding part double click ID:nRSI1735Za
2
Purchase of property, plant and equipment (538) (1,433)
Purchase of intangible assets (212) (147)
Interest received 1 22
(745) (1,565)
Cash flow from financing activities
Increase/(decrease) in bank loans 215 (2,223)
Interest paid (725) (736)
Dividends paid (1,899) (1,585)
Net sale of own shares by share trust 91 91
(2,318) (4,453)
Net increase/(decrease) in cash and cash equivalents (1,087) 2,583
Cash and cash equivalents at beginning of period 1,095 (1,341)
Effect of foreign exchange rates 13 (147)
Cash and cash equivalents at end of period 21 1,095
Cash and cash equivalents comprise:
Cash and cash equivalents 629 1,117
Bank borrowings (608) (22)
21 1,095
TREATT PLC
PRELIMINARY STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2014
GROUP RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
2014 2013
£'000 £'000
(Decrease) /increase in cash and cash equivalents (1,074) 2,436
(Increase)/decrease in bank loans (215) 2,223
Cash (outflow)/inflow from change in net debt in the period (1,289) 4,659
Effect of foreign exchange rates (1) (4)
Movement in net debt in the period (1,290) 4,655
Net debt at start of the period (8,294) (12,949)
Net debt at end of the period (9,584) (8,294)
TREATT PLC
PRELIMINARY STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2014
NOTES TO THE PRELIMINARY STATEMENT
1. Basis of preparation
In accordance with Section 435 of the Companies Act 2006, the Group confirms
that the financial information for the years ended 30 September 2014 and 2013
are derived from the Group's audited financial statements and that these are
not statutory accounts and, as such, do not contain all information required
to be disclosed in the financial statements prepared in accordance with
International Financial Reporting Standards ("IFRS"). The statutory accounts
for the year ended 30 September 2013 have been delivered to the Registrar of
Companies. The statutory accounts for the year ended 30 September 2014 have
been audited and approved, but have not yet been filed.
The Group's audited financial statements for the year ended 30 September 2014
received an unqualified audit opinion and the auditor's report contained no
statement under section 498(2) or 498(3) of the Companies Act 2006.
The financial information contained within this preliminary statement was
approved and authorised for issue by the Board on 8 December 2014.
2. Accounting policies
These financial statements have been prepared in accordance with the
accounting policies set out in the full financial statements for the year
ending 30 September 2013.
There were no new standards and amendments to standardswhich are mandatory and
relevant to the Group for the first time for the financial year ending 30
September 2014 which had a material effect on this preliminary statement.
3. Segmental information
Business segments
IFRS 8 requires operating segments to be identified on the basis of internal
financial information reported to the Chief Operating Decision Maker (CODM).
The Group's CODM has been identified as the Board of Directors who are
primarily responsible for the allocation of resources to the segments and for
assessing their performance. The disclosure in the Group accounts of
segmental information is consistent with the information used by the CODM in
order to assess profit performance from the Group's operations.
The Group now operates one global business segment engaging in the manufacture
and supply of ingredient solutions for the flavour, fragrance and consumer
goods markets with manufacturing sites in the UK, US and Kenya. Many of the
Group's activities, including sales, manufacturing, technical, IT and finance,
are managed globally on a Group basis.
Geographical segments
The following table provides an analysis of the Group's revenue by
geographical market:
2014 2013
£'000 £'000
Revenue by destination
United Kingdom 9,975 10,016
Rest of Europe 21,566 19,837
The Americas 29,638 26,661
Rest of the World 18,010 17,583
79,189 74,097
TREATT PLC
PRELIMINARY STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2014
NOTES TO THE PRELIMINARY STATEMENT
4. Exceptional items
The exceptional items referred to in the income statement can be categorised
as follows:
2014 2013
£'000 £'000
Legal and professional fees 292 634
Corporate finance advisory and other costs - 459
Agency termination 1,110 -
1,402 1,093
Less: tax effect of exceptional items (244) (108)
1,158 985
The exceptional items in the year all relate to non-recurring items. The
legal and professional fees relate to the earnout dispute in relation to the
acquisition of the Earthoil Group, which remains on-going. The agency
termination costs relate to statutory compensation due upon giving contractual
notice in respect of the strategic termination of a longstanding agency
arrangement.
5. Taxation
2014 2013
£'000 £'000
Analysis of tax charge for the year
Current tax:
UK corporation tax on profits for the period 732 953
Adjustments to UK tax in respect of previous period (111) 7
Overseas corporation tax on profits for the period 909 581
Adjustments to overseas tax in respect of previous periods (72) (45)
Total current tax 1,458 1,496
Deferred tax:
Origination and reversal of timing differences 20 163
Effect of reduced tax rate on opening assets and liabilities (27) (3)
Adjustments in respect of previous periods 102 (1)
Total deferred tax 95 159
Tax on profit on ordinary activities 1,553 1,655
Analysis of tax credit/(charge) in other comprehensive income (OCI):
Current tax:
Foreign currency translation differences (11) 30
Actuarial loss on defined benefit pension scheme 51 72
Total current tax 40 102
Deferred tax:
Cash flow hedges (8) (135)
Actuarial loss on defined benefit pension scheme 188 158
Total deferred tax 180 23
Total tax credit recognised in OCI 220 125
TREATT PLC
PRELIMINARY STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2014
NOTES TO THE PRELIMINARY STATEMENT
5. Taxation (continued)
2014 2013
£'000 £'000
Analysis of tax credit in equity:
Current tax:
Share-based payments 17 -
Deferred tax:
Share-based payments 26 -
Total tax credit recognised in equity 43 -
6. Dividends
Dividend per share for year ended 30 September
20142 20131 20121 2014 2013
Pence Pence* Pence* £'000 £'000
Equity dividends on ordinary shares:
Interim dividend 1.24p 1.10p 1.02p 565 521
Final dividend 2.60p 2.60p 2.08p 1,334 1,064
3.84p 3.70p 3.10p 1,899 1,585
*Restated following 5 for 1 sub-division of shares
1Accounted for in the subsequent year in accordance with IFRS.
2 The declared interim dividend for the year ended 30 September 2014 of 1.24
pence was approved by the Board on 16 May 2014 and was paid on 17 October
2014. Accordingly it has not been included as a deduction from equity at 30
September 2014. The proposed final dividend for the year ended 30 September
2014 of 2.60 pence will be voted on at the Annual General Meeting on 30
January 2015. Both dividends will therefore be accounted for in the financial
statements for the year ended 30 September 2015.
TREATT PLC
PRELIMINARY STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2014
NOTES TO THE PRELIMINARY STATEMENT
7. Earnings per share
Basic earnings per share
Basic earnings per share is based on the weighted average number of ordinary
shares in issue and ranking for dividend during the year. The weighted
average number of shares excludes shares held by the Treatt Employee Benefit
Trust (EBT).
2014 2013*
Earnings (£'000) 3,949 3,479
Weighted average number of ordinary shares in issue (No: '000) 51,335 51,142
Basic earnings per share (pence) 7.69p 6.80p
Diluted earnings per share
Diluted earnings per share is based on the weighted average number of ordinary
shares in issue and ranking for dividend during the year, adjusted for the
effect of all dilutive potential ordinary shares.
The number of shares used to calculate earnings per share (EPS) have been
derived as follows:
2014 2013*
No ('000) No ('000)
Weighted average number of shares 52,405 52,405
Weighted average number of shares held in the EBT (1,070) (1,263)
Weighted average number of shares used for calculating basic EPS 51,335 51,142
Executive share option schemes 40 9
Savings-related share options 177 223
Weighted average number of shares used for calculating diluted EPS 51,552 51,374
Diluted earnings per share (pence) 7.66p 6.77p
Adjusted earnings per share
Adjusted earnings per share measures are calculated based on profits for the
year attributable to owners of the Parent Company before exceptional items as
follows:
2014 2013*
£'000 £'000
Earnings for calculating basic and diluted earnings per share 3,949 3,479
Adjusted for:Exceptional items (see note 4) 1,402 1,093
Taxation thereon (244) (155)
Earnings for calculating adjusted earnings per share 5,107 4,417
Adjusted basic earnings per share (pence) 9.95p 8.64p
Adjusted diluted earnings per share (pence) 9.91p 8.60p
*Restated following 5 for 1 sub-division of shares
TREATT PLC
PRELIMINARY STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2014
NOTES TO THE PRELIMINARY STATEMENT
8. Contingent liabilities
As previously reported, the sellers of the Earthoil Group, which was wholly
acquired in April 2008, have filed a claim in the Chancery Division of the
High Court against the Parent Company for £1.8m which was subsequently
extended to £2.3m. The claim relates to various matters in respect of the
earnout, being the deferred consideration payable to the sellers in respect of
the acquisition of the Earthoil Group. Following the hearing of some
preliminary issues in November 2013 and February 2014, determination of the
substantive issues has been stayed pending hearings at the Court of Appeal on
matters of legal interpretation. As with any litigation, there can be no
certainty of the eventual outcome, but the Board remains of the view that no
sums are due to the sellers in respect of this claim. The costs of resolving
the dispute currently total £939,000, of which the current year's costs of
£292,000 have been included in exceptional items, on a consistent basis to the
prior year. The total eventual legal and professional fees of the dispute are
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