REG - Zotefoams PLC - Half Yearly Report <Origin Href="QuoteRef">ZTF.L</Origin> - Part 2
04/08/2015 07:01
- Part 2: For the preceding part double click ID:nRSD9536Ua
Group revenue 21,167 2,757 724 24,648
Segment profit/(loss) before amortisation 3,410 528 (139) 3,799
Amortisation of acquired intangible assets - - (149) (149)
Segment profit/(loss)Foreign exchange gains 3,410 528- (288)- 3,65024
Unallocated central costs - - - (675)
Operating profit before exceptional items 2,999
* Total Revenue consolidates all external sales made by the joint ventures as
well as those made by Zotefoams plc and its subsidiaries.
** Previously the HPP business result included direct costs and an allocation
of Research and Development and manufacturing overhead but not a share of
indirect administration costs. As the HPP business has grown the result has
been restated to reflect better HPP's use of indirect resource. Central Group
costs have also been excluded from the business segments as these are
non-business specific.
7. EXCEPTIONAL ITEM
On 27 June 2014 the Company made the decision to curtail manufacturing
activity on its microZOTE extrusion line within its Polyolefin business
segment. This resulted in a non-cash impairment charge as follows:
Six months ended 30 June 2015£000 Six months ended 30 June 2014£000
Fixed asset impairment - 1,175
Inventory impairment - 90
- 1,265
8. TAXATION
Six months ended30 June2015£000 Six monthsended30 June 2014£000
Current tax:UK corporation tax 454 475
Foreign tax 7 10
Deferred tax 461 157 485(155)
618 330
The Group's consolidated effective tax rate for the six months ended 30 June
2015 was 20.5% (2014: 20.5%)
Tax is accrued based on an estimated tax rate that would be applicable to
estimated annual earnings.
9. DIVIDENDS
Six monthsended30 June2015£000 Six monthsended30 June2014£000
Final dividend for the year ended 31 December 2014 of 3.7p(2013: 3.6p) per share 1,615 1,421
The final dividend for the year ended 31 December 2014 was paid on 27 May
2015.
10. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is based on the
following data:
Six monthsended30 June 2015£000 Six monthsended30 June2014£000
Earnings
Earnings for the purpose of basic earnings per share pre-exceptional items being net profit attributable to equity holders of the parent pre-exceptional items 2,399 2,288
Earnings for the purposes of diluted earnings per share pre-exceptional items 2,399 2,288
Earnings for the purpose of basic earnings per share being net profit attributable to equity holders of the parent 2,399 1,276
Earnings for the purposes of diluted earnings per share 2,399 1,276
Number of shares Number Number
Weighted average number of ordinary shares for the purposes of basic earnings per share 43,549,103 39,444,150
Effect of dilutive potential ordinary shares:Share options and Long-Term Incentive Plans 598,840 660,253
Weighted average number of ordinary shares for the purposes of diluted earnings per share 44,147,943 40,104,403
11. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
The Group's activities expose it to a variety of financial risks including
credit risk, interest rate risk, liquidity risk and foreign currency risk.
The condensed interim financial statements do not include all financial risk
management information and disclosures required in the annual financial
statements; they should be read in conjunction with the Group's annual
financial statements as at 31 December 2014. There have been no changes in any
risk management policies since the year end.
Fair value estimation
The table below analyses financial instruments carried at fair value, by
valuation method. The different levels have been defined as follows:
· Quoted prices (unadjusted) in active markets for identical assets or
liabilities (Level 1).
· Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices) (Level 2).
· Inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs) (Level 3).
The following table presents the Group's financial instruments that are
measured at fair value at 30 June 2015.
Level 1 Level 2 Level 3 Total
£000 £000 £000 £000
Assets
Forward exchange contracts - 456 - 456
Total assets - 456 - 456
Liabilities
Forward exchange contracts - - - -
Total liabilities - - - -
The following table presents the Group's financial instruments that are
measured at fair value at 30 June 2014.
Level 1 Level 2 Level 3 Total
£000 £000 £000 £000
Assets
Forward exchange contracts - 216 - 216
Total assets - 216 - 216
Liabilities
Forward exchange contracts - - - -
Total liabilities - - - -
The forward exchange contracts have been fair valued using forward exchange
rates that are quoted in an active market.
Group's valuation process
The Group's finance department performs the valuation of forward exchange
contracts required for financial reporting purposes. This is reported to the
Audit Committee.
The results of the valuation processes are included in the Group's monthly
reporting to the directors which include all members of the Audit Committee.
Fair value of financial assets and liabilities measured at amortised cost
The fair value of borrowings is as follows:
30 June 2015 30 June 2014
£000 £000
Current 711 687
Non-current 1,115 1,826
Total 1,826 2,513
The fair value of the following financial assets and liabilities approximate
their carrying amount:
· Trade and other receivables
· Other current financial assets
· Cash and cash equivalents
· Trade and other payables
· Other current liabilities
12. RELATED PARTY TRANSACTIONS
There were no material related party transactions for the periods ended 30
June 2015 and 30 June 2014.
Independent review report to Zotefoams plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed the condensed consolidated interim financial statements,
defined below, in the Interim Results of Zotefoams plc for the six months
ended 30 June 2015. Based on our review, nothing has come to our attention
that causes us to believe that the condensed consolidated interim financial
statements are 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.
This conclusion is to be read in the context of what we say in the remainder
of this report.
What we have reviewed
The condensed consolidated interim financial statements, which are prepared by
Zotefoams plc, comprise:
· the condensed consolidated statement of financial position as at 30
June 2015;
· the condensed consolidated income statement and statement of
comprehensive income for the period then ended;
· the condensed consolidated statement of cash flows for the period then
ended;
· the condensed consolidated statement of changes in equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
As disclosed in note 2, the financial reporting framework that has been
applied in the preparation of the full annual financial statements of the
Group is applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
The condensed consolidated interim financial statements included in the
Interim Results have been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the European Union
and the Disclosure and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
What a review of condensed consolidated financial statements involves
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 enquiries, 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.
We have read the other information contained in the Interim Results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed consolidated interim
financial statements.
Responsibilities for the condensed consolidated interim financial statements
and the review
Our responsibilities and those of the directors
The Interim Results, including the condensed consolidated interim financial
statements, is the responsibility of, and has been approved by, the directors.
The directors are responsible for preparing the Interim Results in accordance
with the Disclosure and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
Our responsibility is to express to the company a conclusion on the condensed
consolidated interim financial statements in the Interim Results based on our
review. This report, including the conclusion, has been prepared for and only
for the company for the purpose of complying with the Disclosure and
Transparency Rules of the Financial Conduct Authority and for no other
purpose. We do not, in giving this conclusion, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent
in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
3 August 2015
Gatwick
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