Final Results

RNS Number : 6157R

MS International PLC

01 July 2020

 

Chairman's Statement

Results and Review

A year ago, in my Chairman's Statement, I stated that we were approaching 'very interesting times'.  At that juncture, we were reasonably confident of making good progress throughout the coming year, although it later became evident that global, political and economic uncertainty was gathering momentum and our businesses would not be immune from its effects, as evidenced in our half year results. 

What we could not foresee was the advent of the 'Covid-19' pandemic and the devastating effects that it would have on the whole global economy, let alone our diverse businesses. The imposed restrictions on movement in terms of personnel and goods seriously impacted both our national and widespread international trading activities.

Nevertheless, our commitment to research and development across our 'Defence' business continued unabated. During the period we expended some £2.00m (2019 - £0.96m) on expanding our portfolio of small/medium calibre naval and land based stabilised weapon systems.

I am however, bitterly disappointed to report a loss before taxation for the year ending 30^th April 2020, amounting to £3.25m (2019 - profit £4.79m) and a loss per share of 15.1p (2019 - profit per share 23.1p) on revenue of £61.15m (2019 - £77.71m). Notwithstanding, the all-important balance sheet has remained strong with cash at a very healthy £16.30m (2019 -  £22.89m) and no borrowings, excluding lease liabilities.

Outlook

Whilst prospects for the global economy are most uncertain and the current downturn could be prolonged, we remain keenly confident in the future success of our businesses. We believe that what we have been doing, and will continue to do, particularly in terms of developing innovative and creative new products while simultaneously upgrading existing ones, is the proven, right approach for the markets we serve that will deliver long term rewards. Furthermore, we will strive to expand our services beyond the current customer base into market sectors that have similar product requirements.

'Defence' - we will continue to invest in new product development, not only for naval applications but also suitable for wider land-based systems. Recent innovations have attracted considerable attention across international markets, and it is most pleasing to report that some very exciting opportunities are now being converted into much more serious sales prospects.

'Forgings'  - our UK operations have been restructured to align with the changing requirements of the national and international markets we serve. We continue to invest in our highly successful United States based manufacturing operations and we are progressively gaining market share.

'Petrol Station Superstructures' - pent-up demand that resulted from the pandemic 'close-down' is starting to be unleashed as markets open up again for new construction and essential maintenance work on existing sites. Our UK based operations will directly benefit as will those we have in Poland, from where we design, supply, erect and maintain petrol station structures across many parts of eastern and northern Europe.

'Petrol Station Branding' - our UK and much larger European mainland operations should also achieve a similar strong recovery as international borders are reopened. The two signage and corporate branding businesses we acquired in the Netherlands last year both serve broader sectors than our traditional customer base.  They will greatly assist the expansion of the division to include other signage markets such as 'Hospitality', - hotels and conference centres; 'Automotive' - motor car showrooms; 'Wayfinding' - relating to airports, holiday theme parks etc., thus adding to our strong petrol station market position. The enlarged division will be addressed as the MSI-Sign Group.

It is appropriate on this occasion to express my appreciation to all our employees, for their understanding and commitment to the business, during what has been a most challenging and disruptive year for everyone.

It is also proper to offer our thanks to HM Government and to those Governments, in countries where we have operating businesses located, for their 'Covid-19' support in what has been an unprecedented time.

We remain committed to moving the business forward again and with the unprecedented experience of the past three months almost behind us, we have the resilience, experience and dedication, along with a great team of people, to achieve our aim. Most importantly, we also enjoy significantly strong financial resources to support and develop opportunities as they arise.

At present the global outlook may be unclear, but with recent positive steps out of the 'lockdown', we are confident that we have the wherewithal not only to progressively recover but also to prosper and take advantage of many exciting opportunities.

All matters considered the Board recommends the payment of a prudent final dividend of 1.75p per share (2019 - 6.5p) making a total for the year of 3.5p (2019 - 8.25p). The final dividend is expected to be paid on 14^th August 2020, to those shareholders on the register at the close of business on 17th July 2020.

Michael Bell

30^th June 2020

Copies of this announcement are available from the Company's registered office at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England.  The full Annual Report and Accounts, which will include the Notice of AGM, will be posted to shareholders shortly, will be available on the Company's website at www.msiplc.com and will be delivered to the Registrar of Companies after it has been laid before the Company's members at the Annual General Meeting to be held on 10^th August 2020 at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster DN4 8DH.

Shareholders are advised to read the statement in the full Annual Report and Accounts in relation to the arrangements for the forthcoming  Annual General Meeting because of the current restrictions in force relating to public meetings due to Covid 19.

MS INTERNATIONAL plc
Michael Bell		Tel: [phone]
Shore Capital (Nominated Adviser and Broker)
Patrick Castle		Tel: [phone]
Daniel Bush

Consolidated income statement
For the period ended 30th April, 2020
					2020		2019
Continuing operations					Total		Total
					£'000		£'000
Revenue					61,153		77,708
Cost of sales					(48,275)		(56,131)
Gross profit					12,878		21,577
Distribution costs					(3,455)		(3,537)
Administrative expenses					(12,542)		(11,846)
					(15,997)		(15,383)
Group operating (loss) / profit before exceptional items					(3,119)		6,194
Past service pension costs					-		(1,198)
Group operating (loss) / profit					(3,119)		4,996
Interest received					133		93
Interest paid					(103)		(116)
Other finance costs - pensions					(164)		(186)
					(134)		(209)
(Loss) / profit before taxation					(3,253)		4,787
Taxation					762		(975)
(Loss) / profit for the period attributable to equity holders of the parent					(2,491)		3,812
(Loss) / earnings per share: basic and diluted					(15.1p)		23.1p
Consolidated statement of comprehensive income
For the period ended 30th April, 2020
					2020		2019
					Total		Total
					£'000		£'000
(Loss) / profit for the period attributable to equity holders of the parent					(2,491)		3,812
Exchange differences on retranslation of foreign operations					(55)		(242)
Net other comprehensive loss to be reclassified to profit or loss in subsequent periods					(55)		(242)
Remeasurement (losses) / gains on defined benefit pension scheme					(2,197)		403
Deferred taxation on remeasurement on defined benefit scheme					545		(69)
Deferred taxation on revaluation surplus on land and buildings					(110)		-
Net other comprehensive (loss) / income not being reclassified to profit or loss in subsequent periods					(1,762)		334
Total comprehensive (loss) / income for the period attributable to equity holders of the parent					(4,308)		3,904

Consolidated and company statement of changes in equity
For the period ended 30th April, 2020
			Share capital		Capital redemption reserve		Other reserves		Revaluation reserve		Share Premium account		Currency translation reserve		Treasury shares		Retained earnings		Total shareholders' funds
			£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000
(a) Group
At 28th April, 2018			1,840		901		2,815		6,055		1,629		521		(3,059)		22,698		33,400
IFRS 15 adjustment			-		-		-		-		-		-		-		(144)		(144)
Profit for the period			-		-		-		-		-		-		-		3,812		3,812
Other comprehensive (loss) / income			-		-		-		-		-		(242)		-		334		92
Total comprehensive (loss) / income			-		-		-		-		-		(242)		-		4,146		3,904
Dividends paid			-		-		-		-		-		-		-		(1,362)		(1,362)
At 27th April, 2019			1,840		901		2,815		6,055		1,629		279		(3,059)		25,338		35,798
Loss for the period			-		-		-		-		-		-		-		(2,491)		(2,491)
Other comprehensive loss			-		-		-		-		-		(55)		-		(1,762)		(1,817)
Total comprehensive loss			-		-		-		-		-		(55)		-		(4,253)		(4,308)
Dividends paid			-		-		-		-		-		-		-		(1,362)		(1,362)
At 30th April, 2020			1,840		901		2,815		6,055		1,629		224		(3,059)		19,723		30,128
(b) Company
At 28th April, 2018			1,840		901		1,565		6,055		1,629		-		(3,059)		18,627		27,558
IFRS 15 adjustment			-		-		-		-		-		-		-		(144)		(144)
Reserve transfer			-		-		6,055		(6,055)		-		-		-		-		-
Loss for the period			-		-		-		-		-		-		-		(233)		(233)
Other comprehensive income			-		-		-		-		-		-		-		334		334
Total comprehensive income			-		-		-		-		-		-		-		101		101
Dividends paid			-		-		-		-		-		-		-		(1,362)		(1,362)
At 27th April, 2019			1,840		901		7,620		-		1,629		-		(3,059)		17,222		26,153
Profit for the period			-		-		-		-		-		-		-		1,366		1,366
Other comprehensive loss			-		-		-		-		-		-		-		(1,608)		(1,608)
Total comprehensive loss			-		-		-		-		-		-		-		(242)		(242)
Dividends paid			-		-		-		-		-		-		-		(1,362)		(1,362)
At 30th April, 2020			1,840		901		7,620		-		1,629		-		(3,059)		15,618		24,549

Consolidated and company statements of financial position
At 30th April, 2020
			Group				Company
			2020		2019		2020		2019
			£'000		£'000		£'000		£'000
ASSETS
Non-current assets
Property, plant and equipment			20,111		20,426		1,121		1,265
Right-of-use assets			1,214		-		5,943		-
Intangible assets			4,140		4,483		-		-
Investments in subsidiaries			-		-		18,036		15,036
Deferred income tax asset			1,875		1,156		1,875		1,241
			27,340		26,065		26,975		17,542
Current assets
Inventories			15,857		12,624		1,543		1,462
Trade and other receivables			4,589		7,044		15,433		22,489
Income tax receivable			719		44		139		21
Prepayments			1,775		1,774		296		299
Cash and cash equivalents			16,125		22,886		-		-
			39,065		44,372		17,411		24,271
TOTAL ASSETS			66,405		70,437		44,386		41,813
EQUITY AND LIABILITIES
Equity
Share capital			1,840		1,840		1,840		1,840
Capital redemption reserve			901		901		901		901
Other reserves			2,815		2,815		7,620		7,620
Revaluation reserve			6,055		6,055		-		-
Share premium account			1,629		1,629		1,629		1,629
Currency translation reserve			224		279		-		-
Treasury shares			(3,059)		(3,059)		(3,059)		(3,059)
(Loss) / profit for the period			(2,491)		3,812		(979)		(233)
Retained earnings brought forward			22,214		21,526		16,597		17,455
TOTAL EQUITY SHAREHOLDERS' FUNDS			30,128		35,798		24,549		26,153
Non-current liabilities
Defined benefit pension liability			8,563		6,802		8,563		6,802
Deferred income tax liability			1,641		1,567		-		-
Lease liabilities			893		-		5,609		-
			11,097		8,369		14,172		6,802
Current liabilities
Bank overdraft			-		-		391		582
Trade and other payables			24,679		25,375		4,891		8,276
Income tax payable			165		895		-		-
Lease liabilities			336		-		383		-
			25,180		26,270		5,665		8,858
TOTAL EQUITY AND LIABILITIES			66,405		70,437		44,386		41,813

Consolidated and company cash flow statements
For the period ended 30th April, 2020			Group				Company
			2020		2019		2020		2019
			£'000		£'000		£'000		£'000
(Loss) / profit before taxation			(3,253)		4,787		1,129		(312)
Adjustments to reconcile profit before taxation to net cash inflow / (outflow) from operating activities
Past service pension costs			-		1,198		-		1,198
IFRS 15 working capital adjustment			-		(144)		-		(144)
Depreciation charge			1,671		1,318		1,001		551
Amortisation charge			631		375		-		-
Net increase of impairment in investment in subsidiary undertaking			-		-		-		168
Profit on sale of fixed assets			(104)		(80)		(93)		(60)
Dividends received			-		-		(2,345)		(690)
Finance costs			134		209		412		249
Foreign exchange gains / (losses)			10		(460)		-		-
Increase in inventories			(1,445)		(958)		(81)		(445)
Decrease / (increase) in receivables			3,019		7,573		4,057		(1,384)
Decrease / (increase) in prepayments			25		(647)		3		36
(Decrease) / increase in payables			(1,021)		(1,849)		(3,462)		1,992
(Decrease) / increase in progress payments			(1,611)		(828)		571		80
Pension fund payments			(600)		(600)		(600)		(600)
Cash (invested in) / generated from operating activities			(2,544)		9,894		592		639
Net interest received / (paid)			66		(23)		(59)		(63)
Taxation (paid) / received			(848)		(797)		30		(36)
Net cash (outflow) / inflow from operating activities			(3,326)		9,074		563		540
Investing activities
Payments for acquisitions, net of cash acquired			(1,178)		-		-		-
Dividends received from subsidiaries			-		-		1,895		690
Purchase of property, plant and equipment			(721)		(891)		(409)		(284)
Proceeds on disposal of property, plant and equipment			128		199		101		176
Net cash (outflow) / inflow from investing activities			(1,771)		(692)		1,587		582
Financing activities
Lease payments			(268)		-		(597)		-
Dividends paid			(1,362)		(1,362)		(1,362)		(1,362)
Net cash outflow from financing activities			(1,630)		(1,362)		(1,959)		(1,362)
(Decrease) / increase in cash and cash equivalents			(6,727)		7,020		191		(240)
Opening cash and cash equivalents / (bank overdraft)			22,886		15,884		(582)		(342)
Exchange differences on cash and cash equivalents			(34)		(18)		-		-
Closing cash and cash equivalents / (bank overdraft)			16,125		22,886		(391)		(582)

The financial information set out above does not constitute the Company's statutory accounts for the periods ended 30th April, 2020 or 27th April, 2019 but is derived from those accounts. Statutory accounts for 2019 have been delivered to the Registrar of Companies, and those for 2020 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

1	Segment information
	The following table presents revenue and profit and certain assets and liability information regarding the Group's divisions for the periods ended 30th April, 2020 and 27th April, 2019. The reporting format is determined by the differences in manufacture and services provided by the Group. The 'Defence' division is engaged in the design, manufacture and service of defence equipment. The 'Forgings' division is engaged in the manufacture of forgings. The 'Petrol Station Superstructures' division is engaged in the design, manufacture, construction, branding, maintenance and restyling of petrol station superstructures. The 'Corporate Branding' division is engaged in the design, manufacture, installation and service of corporate brandings.
	Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Group financing (including finance costs and finance revenue) and income taxes are managed on a group basis and are not allocated to operating segments.
			'Defence'				'Forgings'				'Petrol Station				'Corporate				Total
											Superstructures'				Branding'
			2020		2019		2020		2019		2020		2019		2020		2019		2020		2019
			£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000		£'000
	Revenue
	From external customers		23,464		26,678		11,482		15,695		11,910		15,871		14,297		19,464		61,153		77,708
	From other segments		-		-		-		-		386		450		123		226		509		676
	Segment revenue		23,464		26,678		11,482		15,695		12,296		16,321		14,420		19,690		61,662		78,384
	Segment result		(289)		2,836		(340)		(442)		3		2,055		(2,493)		1,745		(3,119)		6,194
	Past service pension costs																		-		(1,198)
	Net finance costs																		(134)		(209)
	(Loss) / profit before taxation																		(3,253)		4,787
	Taxation																		762		(975)
	(Loss) / profit for the period																		(2,491)		3,812
	Segmental assets		26,666		29,942		3,570		8,988		8,382		10,787		10,740		9,291		49,358		59,008
	Unallocated assets (see below)																		17,047		11,429
	Total assets																		66,405		70,437
	Segmental liabilities		16,639		19,500		1,285		6,125		2,274		4,330		4,922		2,806		25,120		32,761
	Unallocated liabilities (see below)																		11,157		1,878
	Total liabilities																		36,277		34,639
	Capital expenditure		80		67		62		406		293		196		286		118		721		787
	Depreciation		222		77		620		517		346		488		235		365		1,423		1,447
	Unallocated assets include certain fixed assets (including all UK properties), intangible assets, current assets and deferred tax assets. Unallocated liabilities include the defined pension benefit scheme liability and certain current liabilities.

	Geographical analysis
	The following table presents revenue and expenditure and certain assets and liabilities information by geographical segment for the periods ended 30th April, 2020 and 27th April, 2019. The Group's geographical segments are based on the location of the Group's assets. Revenue from external customers is based on the geographical location of its customers.
			United Kingdom				Europe						Americas				Rest of the World						Total
			2020		2019		2020				2019		2020		2019		2020		2019				2020		2019
			£'000		£'000		£'000				£'000		£'000		£'000		£'000		£'000				£'000		£'000
	External revenue		21,036		30,755		30,748				33,143		8,401		9,572		968		4,238				61,153		77,708
	Non-current assets		17,803		17,637		5,017				3,832		4,520		4,596		-		-				27,340		26,065
	Current assets		29,004		34,301		8,378				7,670		1,683		2,401		-		-				39,065		44,372
	Liabilities		30,473		31,701		5,051				2,260		753		679		-		-				36,277		34,640
	Capital expenditure		477		350		244				190		-		351		-		-				721		891

	Information about major customers																									2020				2019
	Revenue from major customers arising from sales reported in the 'Defence' segment:																								£'000				£'000
	Customer 1																									-				10,871
	Customer 1																									12,633				-
	Revenue from major customers arising from sales reported in the 'Corporate Branding' segment:
	Customer 1																									-				11,905
	Customer 1																									3,841				-
2	Employee information																									2020				2019
																										Number				Number
	The average number of employees, including executive directors, during the period was:
	Production																									252				264
	Technical																									66				65
	Distribution																									45				27
	Administration																									85				91
																										448				447
(a)	Staff costs																									2020				2019
	Including executive directors, employment costs were as follows:																								£'000				£'000
	Wages and salaries																									16,893				17,609
	Social Security costs																									2,629				1,934
	Other pension costs																									870				666
																										20,392				20,209

																			2020		2019
(b)	Directors' emoluments																		£'000		£'000
	Aggregate directors' emoluments																		1,300		1,672
	Pension contributions																		33		47
																			1,333		1,719
3	Past service pension costs																		2020		2019
																			£'000		£'000
	Guaranteed minimum pension equalisation adjustment																		-		1,198
																			-		1,198

4	(a)	Taxation
		The charge for taxation comprises:		2020		2019
				£'000		£'000
		Current tax
		United Kingdom corporation tax		(510)		540
		Adjustments in respect of previous years		165		(16)
		Foreign corporation tax		(203)		635
		Group current tax		(548)		1,159
		Deferred tax
		Origination and reversal of temporary differences		(95)		(247)
		Adjustments in respect of prior years		(153)		63
		Change in tax rate		34		-
		Group deferred tax		(214)		(184)
		Tax on (loss) / profit		(762)		975
		Tax relating to items charged or credited to other comprehensive income:
		Deferred tax
		Deferred tax on measurement gains on pension scheme current year		545		69
		Deferred tax on revaluation surplus on land and buildings		(110)		-
		Deferred tax in the Consolidated statement of comprehensive income		435		69
	(b)	Factors affecting the tax charge for the year
		The tax assessed for the period differs to the standard rate of corporation tax in the UK (19%) (2019 - 19%). The differences are explained below:
				2020		2019
				£'000		£'000
		(Loss) / profit before tax		(3,253)		4,787
		(Loss) / profit multiplied by standard rate of corporation tax of 19% (2019 - 19%)		(618)		910
		Expenses not deductible for tax purposes		(420)		(102)
		Adjustments in respect of overseas tax rates		230		120
		Current tax adjustment in respect of prior periods		165		(16)
		Deferred tax adjustment in respect of prior periods		(153)		63
		Deferred tax adjustment in respect of change in rate		34		-
		Total tax charge for the period		(762)		975
	(c)	Factors affecting future tax charge
		A change to the main UK corporation tax rate was enacted in a budget resolution on 17th March, 2020. From 1 April, 2020 the enacted rate remains at 19%, cancelling the previously enacted rate reduction to 17%. Deferred tax at 30th April, 2020 has therefore been provided at 19%. Deferred tax in relation to intangibles recognised on the acquisition of 'MSI-Sign Group B.V.' has been provided at 25%, being the main corporation tax rate in The Netherlands.

5	Earnings per share
	The calculation of basic earnings per share is based on:
	(a)  Loss for the period attributable to equity holders of the parent of £2,491,000 (2019 - profit of £3,812,000).
	(b)  16,504,691 (2019 - 16,504,691) Ordinary shares, being the weighted average number of Ordinary shares in issue.
	This represents 18,396,073 (2019 - 18,396,073) being the weighted average number of Ordinary shares in issue less 1,891,382 (2019 - less 1,891,382) being the weighted average number of shares both held within the ESOT 245,048 (2019 - 245,048) and purchased by the Company 1,646,334 (2019 - 1,646,334).
	The share options issued in the period do not have a dilutive effect on the loss for the period.
6		Dividends paid and proposed		2020		2019
				£'000		£'000
		Declared and paid during the year
		On Ordinary shares
		Final dividend for 2019: 6.50p  (2018 - 6.50p)		1,073		1,073
		Interim dividend for 2020: 1.75p (2019 - 1.75p)		289		289
				1,362		1,362
		Proposed for approval by shareholders at the AGM
		Final dividend for 2020: 1.75p (2019 - 6.50p)		289		1,073

7	Trade and other receivables
							Group				Company
							2020		2019		2020		2019
							£'000		£'000		£'000		£'000
	Trade receivables						4,413		6,913		932		3,456
	Retentions on contracts						-		113		-		-
	Amounts owed by subsidiary undertakings						-		-		14,422		19,029
	Other receivables						176		18		79		4
							4,589		7,044		15,433		22,489
	The aggregate amount of costs incurred and recognised profits to date on contracts is £11,858,000 (2019 - £15,819,000).
	(a)  Trade receivables are denominated in the following currencies:
							Group				Company
							2020		2019		2020		2019
							£'000		£'000		£'000		£'000
	Sterling						1,551		3,674		838		2,751
	Euro						2,319		2,141		94		701
	US dollar						349		778		-		-
	Other currencies						194		320		-		4
							4,413		6,913		932		3,456

	Trade receivables are non-interest bearing and are generally on 30 day terms and are shown net of provision for impairment. The aged analysis of trade receivables after impairment is as follows:
	Group		Total		Not past due		< 30 days		30-60 days		60-90 days		> 90 days
			£'000		£'000		£'000		£'000		£'000		£'000
	2020		4,413		2,745		343		211		327		787
	2019		6,913		6,245		505		148		13		2
	As at 30th April, 2020 trade receivables at a nominal value of £109,000 (2019 - £105,000) were impaired and fully provided. Bad debts of £62,000 (2019 - £65,000) were recovered and bad debts of £68,000 (2019 - £52,000) were incurred.
	Company
	2020		932		865		54		3		7		3
	2019		2,764		2,649		40		81		-		(6)
	As at 30th April, 2020 trade receivables at a nominal value of £73,000 (2019 - £51,000) were impaired and fully provided. Bad debts of £33,000 (2019 - £20,000) were recovered and bad debts of £55,000 (2019 - £39,000) were incurred.
	(b) Retentions on contracts are denominated in the following currencies:
							Group				Company
							2020		2019		2020		2019
							£'000		£'000		£'000		£'000
	Sterling						-		113		-		-
							-		113		-		-
	Retentions on contracts are non-interest bearing and represent amounts contractually retained by customers on completion of contracts for specific time periods as follows:
	Group				Total		Up to 6 months		6 - 12 months		12 - 18  months		18 - 24 months
					£'000		£'000		£'000		£'000		£'000
	2020				-		-		-		-		-
	2019				113		93		20		-		-
	Company
	2020				-		-		-		-		-
	2019				-		-		-		-		-
	(c)  Intercompany receivables
	All amounts due from Group companies are repayable on demand and are not charged interest. The majority of intercompany balances are to group entities with liquid assets and are capable of being repaid on demand. There has been no impairment recognised on intercompany receivables (2019 - £nil).
	There are loans to 'MS INTERNATIONAL Estates Limited', which although repayable on demand, are supported by properties which will not be immediately realisable. The directors have assessed the likelihood of default and the loss in the event of default as well as the balance at the reporting date and conclude that there is no material impairment of the receivable.
	The amounts receivable at the reporting date can be categorised as:
											2020		2019
											£'000		£'000
	Amounts due from companies backed by liquid assets										7,530		7,219
	Amounts due from 'MS INTERNATIONAL Estates Limited'										6,892		11,810
											14,422		19,029

8	Cash and cash equivalents / bank overdraft			Group				Company
				2020		2019		2020		2019
				£'000		£'000		£'000		£'000
	Cash at bank and in hand			16,125		17,151		-		-
	Short-term deposits			-		5,735		-		-
	Bank overdraft			-		-		(391)		(582)
				16,125		22,886		(391)		(582)

9	Net funds
	Analysis of net funds							Group
								2020		2019
								£'000		£'000
	Cash and cash equivalents							16,125		22,886
	Lease liabilities							(1,229)		-
								14,896		22,886
	Group movement in net funds
						Cash / bank overdraft		Lease liabilities		Total
	Net funds as at 28th April, 2018					15,884		-		15,884
	Cash flows					7,020		-		7,020
	Foreign exchange adjustments					(18)		-		(18)
	Net funds as at 27th April, 2019					22,886		-		22,886
	Recognised on adoption of IFRS 16					-		(781)		(781)
	Net funds as at 28th April, 2019					22,886		(781)		22,105
	Cash flows					(6,727)		268		(6,459)
	Foreign exchange adjustments					(34)		6		(28)
	Leases on acquisition					-		(501)		(501)
	New leases					-		(185)		(185)
	Other changes					-		(36)		(36)
	Net funds as at 30 April, 2020					16,125		(1,229)		14,896

10	Reserves
	Share Capital
	The balance classified as share capital includes the nominal value on issue of the Company's equity share capital, comprising 10p Ordinary shares.
	Capital redemption reserve
	The balance classified as capital redemption reserve represents the nominal value of issued share capital of the Company, repurchased.
	Other reserves - Company
	Following the transfer of assets held at valuation by the Company, to a subsidiary company, a reserve has been created which is non-distributable. This is equal to the revaluation reserve previously arising.
	Additionally, it includes the non-distributable retained reserve for the revaluation reserve previously showing in the Company for properties now transferred to other members of the Group.
	Revaluation reserve
	The asset revaluation reserve is used to record increases in the fair value of land and buildings and decreases to the extent that such decrease relates to an increase on the same assets previously recognised in equity. This also includes the impact of the change in the enacted corporation tax rate from 17% to 19% on the related deferred tax provision from prior year.
	Share premium account
	The balance classified as special reserve represents the share premium on the issue of the Company's equity share capital.
	Currency translation reserve
	The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. It is also used to record the effect of hedging net investments in foreign operations.
	Treasury shares
								2020		2019
								£'000		£'000
	Employee Share Ownership Trust							100		100
	Shares in treasury (see below)							2,959		2,959
								3,059		3,059
	During 1991 the Company established an Employee Share Ownership Trust ("ESOT"). The trustee of the ESOT is Appleby Trust (Jersey) Ltd, an independent company registered in Jersey. The ESOT provides for the issue of options over Ordinary shares in the Company to Group employees, including executive directors, at the discretion of the Remuneration Committee.
	The trust has purchased an aggregate 245,048 (2019 - 245,048) Ordinary shares, which represents 1.3% (2019 - 1.3%) of the issued share capital of the Company at an aggregate cost of £100,006. The market value of the shares at 30th April, 2020 was £338,000 (2019 - £505,000). The Company has made payments of £nil (2019 - £nil) into the ESOT bank accounts during the period. During the period 1,575,000 (2019 - nil) options over shares have been granted. Details of the outstanding share options for directors are included in the Directors' remuneration report.
	The assets, liabilities, income and costs of the ESOT have been incorporated into the Company's financial statements. Total ESOT costs charged to the income statement in the period amounts to £8,000 (2019 - £7,000). During the period no options on shares were exercised (2019 - nil) and no shares were purchased (2019 - nil).
	The Company made the following purchases of its own 10p Ordinary shares to be held in Treasury:
										£'000
	1,000,000 shares from the Group's pension scheme on 11th December, 2013.									1,722
	646,334 shares on 30th January, 2014.									1,237
										2,959

 

END

 

 

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