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MS International PLC (MSI)

  Print          Annual reports

Wednesday 08 December, 2021

MS International PLC

Half-year Report

RNS Number : 8844U
MS International PLC
08 December 2021
 

 












MS INTERNATIONAL plc





Unaudited Interim Condensed

 

Group Financial Statements

 

31st October, 2021

 




 

 



EXECUTIVE DIRECTORS

Michael Bell

Michael O'Connell

Nicholas Bell

 




NON-EXECUTIVE DIRECTORS

Roger Lane-Smith

David Hansell

 




COMPANY SECRETARY

Shelley Ashcroft

 




REGISTERED OFFICE

Balby Carr Bank

Doncaster

DN4 8DH

England

 




PRINCIPAL OPERATING DIVISIONS

 

 'Defence'

 'Forgings'

 'Petrol Station Superstructures'

 'Corporate Branding'

 


 



 

 

Chairman's Statement


 

Results

 

It is a pleasure to report that the Company continued to perform well and maintained profitable trading in the six months to 31st October 2021.

 

Revenue in the latest period increased significantly to £33.16m (2020 - £26.34m) producing a profit of £0.77m (2020 - loss £1.08m).

 

Basic earnings per share 3.4p (2020 - loss 6.6p).

 

The balance sheet remains strong with cash at £15.54m (2020 - £14.01m).

 

Furthermore, orders received in the period, when added to those already 'in hand', have placed the Group in a very advantageous position despite the global pandemic which will, no doubt, continue to disrupt current and prospective business activity across our operations.

 

 

Prospects

 

'Defence'

During the past few months we have, where possible, successfully trialled and demonstrated several of our new naval and land-based products to overseas customers. I am delighted to report, that all of these have been very well received. This has provided additional confidence in our international sales prospects.

 

The first batch of our 30mm naval guns for supply to the US Navy is in production for delivery in the second part of this financial year, alongside various other export sales items.

 

We anticipate commencing production in our magnificent, refurbished, and enhanced production facilities early in the new year.

 

'Forgings'

This division, with operations in the UK and in both North and South America, is benefiting from a gratifyingly high level of demand from the many international manufacturers of mobile material handling equipment. This upturn stems partly from the current major disruption of sea-going cargo traffic travelling from low cost overseas suppliers to the worldwide materials handling industry.

 

A shift to a 'buy local' policy has proved to be the industry's best remedy to negate an otherwise highly vulnerable supply chain and further damage to the environment. Without doubt, MSI has the proven capability and reliability to meet the demands of both global and local industries from our three international locations in which we continue to invest to ensure maximum efficiencies.

 

'Petrol Station Superstructures'

Across the UK, development of new sites, together with the refurbishment and further expansion of other service provisions on the filling station network, are expected to continue at a satisfactory level throughout the remainder of this financial year. By contrast, intercountry access controls and restrictions, already imposed by many European states, may remain strictly enforced and so hinder their station building projects.

 

'Corporate Branding'

Whilst those strict intercountry access controls remain in place, trading will remain difficult for this division which operates across mainland Europe from its bases in The Netherlands and, to a lesser extent, Germany. The majority of our customers served by this Group are large international corporates, many of which have enforced temporary cutbacks on branding expenditure in these challenging times, instead focusing their available resources on maintenance and repair.

 

Pleasingly, by comparison, our fledgling UK operation has a considerable amount of work-in-hand, benefiting from the rebranding of petrol stations from one oil company to another following an active period of station ownership transfers.

 

 

Outlook

We remain firmly of the opinion that the Company is better placed than it has been for some time, despite the current difficulties brought about by the pandemic and its consequences.

 

All such matters considered, the Board has declared a maintained interim dividend per share of 1.75p (2020 - 1.75p) payable to shareholders on the 14th January 2022.

 

 

 

Michael Bell     7th December 2021

 

 

 

 

MS INTERNATIONAL plc 



Michael Bell


Tel: 01302 322133




Shore Capital (Nominated Adviser and Broker)



Patrick Castle


Tel: 020 7408 4090

Daniel Bush





 

Independent review report to MS INTERNATIONAL plc


Introduction


We have reviewed the condensed set of financial statements in the half-yearly financial report of MS INTERNATIONAL plc (the 'company') for the six months ended 31 October 2021 which comprises Interim condensed consolidated income statement, Interim condensed consolidated statement of comprehensive income statement, Interim condensed consolidated statement of financial position, Interim consolidated statement of changes in equity, Interim consolidated cash flow statement and notes to the interim consolidated financial statements. We have read the other information contained in the half-yearly financial report which comprises only the Chairman's statement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.


Directors' responsibilities


The half-yearly financial report is the responsibility of, and has been approved by, the directors. As disclosed in note 2, the annual financial statements of the group are prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting'.


Our responsibility


Our responsibility is to express a conclusion to the company on the condensed set of financial statements in the half-yearly financial report based on our review.


Scope of review


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'. 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 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.


The impact of uncertainties arising from COVID-19 on our review


Our review of the condensed set of financial statements in the half-yearly financial report requires us to obtain an understanding of all relevant uncertainties, including those arising as a result of COVID-19. Such reviews assess and challenge the reasonableness of estimates made by the directors and the related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company's future prospects and performance.

COVID-19 is one of the most significant economic events for the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty, with the full range of possible outcomes and their impacts unknown. We applied a standardised firm-wide approach in response to these uncertainties when assessing the company's future prospects and performance. However, no review of interim financial information should be expected to predict the unknowable factors or all possible future implications for a company associated with a course of action such as COVID-19.


Conclusion


Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 October 2021 is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting'.


Use of our report


This report is made solely to the company, as a body, 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'. Our review work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company as a body, for our review work, for this report, or for the conclusion we have formed.


Grant Thornton UK LLP

Statutory Auditor, Chartered Accountants

Sheffield

7th December 2021

Interim condensed consolidated income statement







Half-year to 31st October, 2021


Half-year to 31st October, 2020



unaudited


unaudited


Notes

£'000


£'000






Revenue

5/6

33,155


26,342






Cost of sales


(24,646)


(19,831)

Gross profit


8,509


6,511






Distribution costs


(1,768)


(1,297)

Administrative expenses


(5,865)


(6,204)

Operating profit/(loss)

6

876


(990)






Finance costs


(40)


(45)

Other finance costs - pension


(63)


(70)

Share of net profit of joint venture


-


25 

Profit/(loss) before taxation


773


(1,080)






Tax expense

7

(236)


 (2)

Profit/(loss) for the period attributable to equity holders of the parent


537


(1,082)

Basic earnings/(loss) per share

8

3.4p


(6.6p)

Diluted earnings/(loss) per share

8

3.3p


(6.6p)





















Interim condensed consolidated statement of comprehensive income





Half-year to 31st October, 2021


Half-year to 31st October, 2020



unaudited


unaudited



£'000


£'000






Profit/(loss) for the period attributable to equity holders of the parent


537


(1,082)

Exchange differences on retranslation of foreign operations


(242)


219

Net other comprehensive (loss)/profit to be reclassified to profit or loss in subsequent periods


(242)


219

Remeasurement losses on defined benefit pension scheme

13

217


(642)

Deferred taxation on remeasurement of defined benefit pension scheme


 258


122

Deferred taxation on revaluation surplus on land and buildings


(331)


-

Net other comprehensive profit/(loss) not being reclassified to profit or loss in subsequent periods


144


(520)

Total comprehensive profit/(loss) for the period attributable to equity holders of the parent


439


(1,383)

 






Interim condensed consolidated statement of financial position



 








 


Notes

31st October, 2021


31st October, 2020


30th April, 2021

 



unaudited


unaudited


audited

 

ASSETS


£'000


£'000


£'000

 

Non-current assets







 

Intangible assets


3,122


4,070


3,558

 

Property, plant, and equipment

10

20,015


19,484


19,113

 

Right-of-use assets

11

1,235


682


530

 

Investment in joint venture


34


34


36

 

Deferred income tax asset


1,861


2,015


1,606

 



26,267


26,285


24,843

 








 

Current assets







 

Inventories


17,446


17,624


12,423

 

Trade and other receivables


11,075


6,957


9,369

 

Contract assets


1,747


-


1,998

 

Income tax receivable


52


555


194

 

Prepayments


2,127


2,397


2,010

 

Cash and cash equivalents

12

14,067


7,457


17,390

 

Restricted cash held in Escrow

12

1,470


6,554


6,165

 



47,984


41,544


49,549

 

TOTAL ASSETS


74,251


67,829


74,392

 








 

EQUITY AND LIABILITIES







 

Equity







 

Share capital


1,784


1,840


1,784

 

Capital redemption reserve


957


901


957

 

Other reserve


2,815


2,815


2,815

 

Revaluation reserve


6,055


6,055


6,055

 

Special reserve


1,629


1,629


1,629

 

Currency translation reserve


(56)


443


186

 

Treasury shares


(2,789)


(3,059)


(2,789)

 

Retained earnings


20,044


17,832


20,399

 

TOTAL EQUITY SHAREHOLDERS' FUNDS


30,439


28,456


31,036

 








 

Non-current liabilities







 

Defined benefit pension liability

13

6,491


9,075


7,095

 

Deferred income tax liability


1,938


1,600


1,553

 

Lease liabilities


975


465


380

 



9,404


11,140


9,028

 








 

Current liabilities







 

Trade and other payables


12,623


12,684


12,410

 

Contract liabilities


20,928


15,299


21,192

 

Income tax payable


574


18


561

 

Lease liabilities


283


232


165

 



34,408


28,233


34,328

 

TOTAL EQUITY AND LIABILITIES


74,251


67,829


74,392

 








 

The interim condensed consolidated financial statements of the Group for the six months ended 31st October, 2021 were authorised for issue in accordance with a resolution of the directors on 7th December, 2021 and signed on their behalf by:

 








 








 

Michael O'Connell







 

Finance Director







 

 



 

Interim consolidated statement of changes in equity
































Share capital


Capital redemption reserve


Other reserve


Revaluation reserve


Special reserve


Currency translation reserve


Treasury shares


Retained earnings


Total unaudited



£'000


£'000


£'000


£'000


£'000


£'000


£'000


£'000


£'000




















At 30th April, 2020


1,840


901


2,815


6,055


1,629


224


(3,059)


19,723


30,128

Loss for the period









(1,082)


(1,082)

Other comprehensive income/(loss)







219



(520)


(301)

Dividend paid









(289)


(289)

At 31st October, 2020


1,840


901


2,815


6,055


1,629


443


(3,059)


17,832


28,456

Profit for the period









2,259


2,259

Other comprehensive (loss)/income







(257)



1,503


1,246

Dividend paid









(289)


(289)

Purchase of own shares








(636)



(636)

Cancellation of shares


(56)


56






906


(906)


At 30th April, 2021


1,784


957


2,815


6,055


1,629


186


(2,789)


20,399


31,036




















Profit for the period









537


537

Other comprehensive (loss)/income







(242)



144


(98)

Dividend paid (note 9)









(1,036)


(1,036)

At 31st October, 2021


1,784


957


2,815


6,055


1,629


(56)


(2,789)


20,044


30,439

 

 


















 



 

Interim consolidated cash flow statement







Half-year to 31st October, 2021


Half-year to 31st October, 2020



unaudited


unaudited



£'000


£'000






Profit/(loss) before taxation


773


(1,080)

Adjustments to reconcile profit/(loss) before taxation to net cash outflow from operating activities:




Depreciation charge of owned and right-of-use assets


868


866

Amortisation charge


111


125

Impairment of goodwill


349


-

Profit on disposal of fixed assets


(59)


(26)

Share of net profit of joint venture


  - 


(25)

Net finance costs


103


115

Termination of lease


  - 


(7)

Foreign exchange (losses)/gains


(44)


192

Increase in inventories


(5,119)


(1,690)

Increase in receivables


(1,433)


(2,315)

Increase in prepayments


(119)


(620)

Increase in payables


246


1,306

(Decrease)/increase in contract liabilities


(310)


1,891

Pension fund deficit reduction payments


(450)


(200)

Cash invested in operating activities


(5,084)


(1,468)

Net interest paid


(15)


(25)

Taxation paid


(20)


(39)

Net cash outflow from operating activities


(5,119)


(1,532)






Investing activities





Purchase of property, plant, and equipment


(1,618)


(152)

Purchase of intangible assets


(54)


-

Proceeds on disposal of property, plant, and equipment


79


27

Decrease/(increase) in restricted cash held in Escrow


4,695


(6,554) 

Net cash inflow/(outflow) from investing activities


3,102


(6,679)






Financing activities





Lease payments


(204)


(191)

Dividend paid


(1,036)


(289)

Net cash outflow from financing activities


(1,240)


(480)

Decrease in cash and cash equivalents


(3,257)


(8,691)

Opening cash and cash equivalents


17,390


16,125

Exchange differences on cash and cash equivalents


(66)


23

Closing cash and cash equivalents


14,067


7,457






 



 

Notes to the interim consolidated financial statements







1.  Corporate information








MS INTERNATIONAL plc is a public limited company incorporated in England and Wales. The Company's ordinary shares are traded on the AIM market of the London Stock Exchange. The principal activities of the Company and its subsidiaries ("the Group") are the design, manufacture, construction, and servicing of a range of engineering products and structures. These activities are grouped into the following divisions:





'Defence' - design, manufacture, and service of defence equipment.







'Forging' - manufacture of fork-arms and open die forgings.







'Petrol Station Superstructures' - design, manufacture, construction, and maintenance of petrol station superstructures.





'Corporate Branding' - design, manufacture, installation, and service of corporate brandings, including media facades, way-

finding signage, public illumination, creative lighting solutions, and the complete appearance of petrol station superstructures

and forecourts.





2.  Basis of preparation and accounting policies








The consolidated condensed interim financial statements included in this half-yearly financial report have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" in conformity with the requirements of the Companies Act 2006. They do not include all the information and disclosures required in annual financial statements in accordance with IFRS, and should therefore be read in conjunction with the Group's Annual Report for the year ended 30th April, 2021 and any public announcements made by MS INTERNATIONAL plc during the interim reporting period.





The consolidated condensed interim financial statements included in this half-yearly financial report have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" in conformity with the requirements of the Companies Act 2006. They do not include all the information and disclosures required in annual financial statements in accordance with IFRS, and should therefore be read in conjunction with the Group's Annual Report for the year ended 30th April, 2021 and any public announcements made by MS INTERNATIONAL plc during the interim reporting period.





The interim financial information has been reviewed but not audited by the Group's auditor, Grant Thornton UK LLP. Their report is included on page 4.





The accounting policies are consistent with those applied in the financial statements of the Annual Report for year ended 30th April, 2021. The Group has not early adopted any standard, interpretation, or amendment that has been issued but is not yet effective.





The assets and liabilities of the overseas subsidiaries are translated into the presentational currency of the Group at the rate of exchange ruling at the statement of financial position date and their income statements are translated at the weighted average exchange rates for the year. The exchange differences arising on the retranslation are taken directly to a separate component of equity.





3.  Principal risks and uncertainties








The principal risks and uncertainties facing the Group for the remaining six months of the financial year are discussed below. Further details of the Group's risks and uncertainties can be found on page 9 of the Annual Report for the year ended 30th April, 2021 available from MS INTERNATIONAL plc's website: www.msiplc.com.





One of the Group's principal risk and uncertainties continues to be the level of customer demand for the Group's products and services. Customer demand is driven mainly by general economic conditions in addition to pricing, product quality, and delivery performance of the Group in comparison to our competitors.





In addition, the current economic environment brought about by the Covid-19 pandemic, along with the impact of lockdowns and travel related restrictions, has created uncertainty for the Group in terms of timing of revenue recognition and the phasing of demand from customers. There is also a risk to both the health and safety of staff, and to the global supply chain in terms of the flow of goods and raw materials.

 

Despite the successful role out of global vaccination programmes, there remains uncertainty around the potential emergence of variants that could lead to the imposition of further lockdowns and/or travel restrictions. Given that the Group has plans in place to manage foreseeable challenges of the Covid crisis, healthy financial resources, and a number of long-term contracts with certain customers, the directors believe the Group is well placed to manage its business risk successfully despite these challenges. Accordingly, the directors continue to conclude that the adoption of the going concern basis of accounting remains appropriate when preparing these interim financial statements.





4.  Going concern








In making the going concern assessment, as well as considering general risks and specifically the risks presented by Covid-19, the directors have considered a period of 12 months from the approval of the financial statements.

 

 

5.  Revenue

 

The Group's revenue disaggregated by pattern of revenue recognition is as follows:

 



Half-year to 31st October, 2021


Half-year to 31st October, 2020



unaudited


unaudited



£'000


£'000






Revenue recognised at a point in time


33,155


26,342

Total revenue

 


33,155


26,342

 

 

 

 6.  Segment information





















 

 





















Primary reporting format - divisional segments






































The following table presents segmental revenue and operating profit/(loss) as well as segmental assets and liabilities of the Group's divisions for the half-year periods ended 31st October, 2021 and 31st October, 2020.



  'Defence'


  'Forgings'


  'Petrol Station  Superstructures'

  'Corporate  Branding'

  Total







2021


2020


2021


2020


2021


2020


2021


2020


2021


2020



















unaudited


unaudited



£'000


£'000


£'000


£'000


£'000


£'000


£'000


£'000


£'000


£'000

Segmental revenue





















From external customers


10,947


8,641


7,418


4,577


7,942


6,640


6,848


6,484


33,155


26,342

From other segments






140


51


50


66


190


117

Segment revenue


10,947


8,641


7,418


4,577


8,082


6,691


6,898


6,550


33,345


26,459






















Segment result





















Operating profit/(loss)


(155)


(1,267)


784


(279)


725


835


(478)


(279)


876


(990)

Net finance expense


















(103)


(115)

Share of net profit of joint venture



















25


















773


(1,080)

Tax expense


















(236)


(2)

Profit/(loss) for the period


















537


(1,082)






















Segmental assets





















Assets attributable to segments


33,622


27,984


5,732


3,497


10,195


10,154


8,124


9,919


57,673


51,554

Unallocated assets*


















16,578


16,275

Total assets


















74,251


67,829






















Segmental liabilities





















Liabilities attributable to segments


23,888


18,747


2,704


1,774


4,227


3,349


3,684


4,062


34,503


27,932

Unallocated assets*

 


















9,309


11,441

Total assets


















43,812


39,373











































Other segmental information





















Capital expenditure


1,198


81


172



131


59


117


12


1,618


152

Depreciation


101


133


276


278


358


178


133


277


868


866

Amortisation






23


33


88


92


111


125

Impairment of goodwill








349



349











































* Unallocated assets include certain fixed assets (including all UK properties), intangible assets, current assets, and deferred income tax assets. Unallocated liabilities include the defined benefit pension scheme liability, the deferred income tax liability, and certain current liabilities.

 

Assets and liabilities attributable to segments comprise the assets and liabilities of each segment adjusted to reflect the elimination of the cost of investment in subsidiaries and the provision of financing loans provided by MS INTERNATIONAL plc.

 

Revenue between segments is determined on an arm's length basis. Segment results, assets, and liabilities include items directly attributable to the segment as well as those that can be allocated on a reasonable basis.

 

7.  Tax expense











The major components of the tax expense in the consolidated income statement are:






Half-year to 31st October, 2021


Half-year to 31st October, 2020




unaudited


unaudited




£'000


£'000







Current tax expense


175


67

Deferred tax expense/(income)


61


(65)

Total tax expense reported in the Interim condensed consolidated income statement


236


2







Tax relating to items (charged)/credited to other comprehensive income:

 



Half-year to 31st October, 2021


Half-year to 31st October, 2020



unaudited


unaudited



£'000


£'000






Deferred tax on measurement gains on pension scheme current year


217


(642)

Deferred tax on revaluation surplus on land and buildings


258


122

Deferred taxation on revaluation surplus on land and buildings


(331)


Deferred tax in the Interim condensed consolidated statement of comprehensive income


144


(520)

 

The rate of corporation tax in the UK will remain at 19% until April 2023 when it will increase to 25%. As the changes have been enacted as at 31st October, 2021, deferred income tax has therefore been provided at 25% or a blended rate depending upon when the underlying temporary timing differences are expected to unwind. Deferred income 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.







8.  Earnings per share











The calculation of basic earnings per share of 3.4p (2020 - loss per share of 6.6p) is based on the profit for the period attributable to equity holders of the parent of £537,000 (2020 - loss of £1,082,000) and on a weighted average number of ordinary shares in issue of 15,949,691 (2020 - 16,504,491). At 31st October, 2021 there were 1,055,000 (2020 - 400,000) potentially dilutive shares on option with a weighted average effect of 391,005 (2020 - 400,000) giving a diluted earnings per share of 3.3p (2020 - loss per share of 6.6p).









Half-year to 31st October, 2021


Half-year to 31st October, 2020



unaudited


unaudited



£'000


£'000






Weighted average number of shares in issue


17,841,073


18,396,073

Less weighted average number of shared held in the ESOT


(245,048)


(245,048)

Less weighted average number of shares purchased by the Company


(1,646,334)


(1,646,334)

Weighted average number of shares to be used in basic EPS calculation


15,949,691


16,504,691

Weighted average number of the 1,055,000 (2020 - 400,000) potentially dilutive shares


391,005


400,000

Weighted average diluted shares


16,340,696


16,904,691






Profit/(loss) for the year attributable to equity holders to the parent in £


537,000


(1,082,000)

Basic earnings/(loss) per share


3.4p


(6.6p)

Diluted earnings/(loss) per share


3.3p


(6.6p)

 

The prior year diluted loss per share is the same as the basic loss per share as the impact of potential dilutive shares is anti-dilutive and therefore not recognised.

 

 







9.  Dividends paid and proposed








Half-year to 31st October, 2021


Half-year to 31st October, 2020




unaudited


unaudited




£'000


£'000

Declared and paid during the six month period





Final dividend on ordinary shares for 2021 - 6.5p (2020 - 1.75p)


1,036


289

Proposed for approval





Interim dividend on ordinary shares for 2022 - 1.75p (2021 - 1.75p)


279


289







The interim dividend will be payable on 14th January, 2022 to those members registered on the books of the Company on 17th December, 2021.

 

10.  Property, plant, and equipment














At 31st October, 2021









Freehold


Plant and





property


equipment


Total



£'000


£'000


£'000

Cost or valuation







At 30th April, 2021


17,591


15,506


33,097

Additions


1,041


577


1,618

Disposals


  - 


(563)


(563)

Exchange differences


(7)


(67)


(74)

At 31st October, 2021


18,625


15,453


34,078








Accumulated depreciation







At 30th April, 2021


1,242


12,742


13,984

Depreciation charge for the period


153


527


680

Disposals


  - 


(542)


(542)

Exchange differences


(8)


(51)


(59)

At 31st October, 2021


1,387


12,676


14,063

Net book value at 31st October, 2021


17,238


2,777


20,015








Analysis of cost or valuation







At professional valuation


12,300


  - 


12,300

At cost


6,325


15,453


21,778

At 31st October, 2021


18,625


15,453


34,078








 

 

At 31st October, 2020









Freehold


Plant and





property


equipment


Total



£'000


£'000


£'000

Cost or valuation







At 30th April, 2020


17,746


15,858


33,604

Additions


  - 


152


152

Disposals


  - 


(364)


(364)

Exchange differences


(98)


1


(97)

At 31st October, 2020


17,648


15,647


33,295








Accumulated depreciation







At 30th April, 2020


970


12,523


13,493

Depreciation charge for the period


158


530


688

Disposals


  - 


(363)


(363)

Exchange differences


(6)


(1)


(7)

At 31st October, 2020


1,122


12,689


13,811

Net book value at 31st October, 2020


16,526


2,958


19,484








Analysis of cost or valuation







At professional valuation


12,300


  - 


12,300

At cost


5,348


15,647


20,995

At 31st October, 2020


17,648


15,647


33,295

 








At 30th April, 2021









Freehold


Plant and





property


equipment


Total



£'000


£'000


£'000

Cost or valuation







At 30th April, 2020


17,746


15,858


33,604

Additions


234


547


781

Disposals


  - 


(756)


(756)

Acquisition


  - 


30


30

Exchange differences


(389)


(173)


(562)

At 30th April, 2021


17,591


15,506


33,097








Accumulated depreciation







At 30th April, 2020


970


12,523


13,493

Depreciation charge for the year


311


1,050


1,361

Disposals


  - 


(733)


(733)

Exchange differences


(39)


(98)


(137)

At 30th April, 2021


1,242


12,742


13,984

Net book value at 30th April, 2021


16,349


2,764


19,113








Analysis of cost or valuation







At professional valuation


12,300


  - 


12,300

At cost


5,291


15,506


20,797

At 30th April, 2021


17,591


15,506


33,097








On 11th November, 2017, 26th July, 2017 and 28th March, 2018 the Group's land and buildings, which consist of manufacturing and office facilities in the UK, Poland, and USA were valued by Dove Haigh Phillips (UK), KonSolid-Nieruchomosci (Poland), and Real Estate & Appraisal Services Inc (USA). Management determined that these constitute one class of asset under IFRS 13 (designated as level 3 fair value assets), based on the nature, characteristics, and risks of the properties.








The properties in the UK were valued on the basis of an existing use value in accordance with the Appraisal and Valuation Standards (5th Edition) published by the Royal Institution of Chartered Surveyors. The Polish property was valued based on the income approach, converting anticipated future benefits in the form of rental income into present value. Finally, the US property was valued on an income and market value basis. For all properties, there is no difference between current use and highest and best use.








The valuation of the properties in the UK has been processed in the financial statements. Both the Polish and the US property valuations were sufficiently close to their carrying value such that the valuations were not processed.

 

 

11.  Right-of-use assets


















At 31st October, 2021






Plant and







Property


equipment


Total





£'000


£'000


£'000










Cost or valuation









At 30th April, 2021




895


21


916

Additions




765


  - 


765

Lease amendment




160


  - 


160

Exchange differences




(46)


  - 


(46)

At 31st October, 2021




1,774


21


1,795










Accumulated depreciation









At 30th April, 2021




373


13


386

Depreciation charge for the period




184


4


188

Exchange differences




(14)


  - 


(14)

At 31st October, 2021




543


17


560

Net book value at 31st October, 2021




1,231


4


1,235



















At 31st October, 2020






Plant and







Property


equipment


Total





£'000


£'000


£'000










Cost or valuation









At 30th April, 2020




1,403


50


1,453

Additions




  - 


  - 


  - 

Disposals




(390)


  - 


(390)

Exchange differences




38


  - 


38

At 31st October, 2020




1,051


50


1,101










Accumulated depreciation









At 30th April, 2020




219


20


239

Depreciation charge for the period




168


10


178

Exchange differences




2


  - 


2

At 31st October, 2020




389


30


419

Net book value at 31st October, 2020




662


20


682










At 30th April, 2021






Plant and







Property


equipment


Total





£'000


£'000


£'000










Cost or valuation









At 30th April, 2020




1,403


50


1,453

Disposals




(517)


(29)


(546)

Exchange differences




9


  - 


9

At 30th April, 2021




895


21


916










 

 









Accumulated depreciation









At 30th April, 2020




219


20


239

Depreciation charge for the period




288


17


305

Disposals




(127)


(24)


(151)

Exchange differences




(7)


  - 


(7)

At 30th April, 2021




373


13


386

Net book value at 30th April, 2021




522


8


530



















12.  Cash and cash equivalents


















For the purpose of the interim consolidated cash flow statement, cash and cash equivalents are comprised of the following:














31st October, 2021


31st October, 2020


30th April, 2021





unaudited


unaudited


audited





£'000


£'000


£'000

Cash at bank and in hand




14,067


7,457


17,390

Cash and cash equivalents




14,067


7,457


17,390

Restricted cash held in Escrow - maturing in more than 90 days




1,470


6,554


6,165

Total cash




15,537


14,011


23,555










The balance held in Escrow provides security to Lloyds Bank plc in respect of any guarantees, indemnities, and bond guarantees given by the group in the ordinary course of business.

 

13.  Pension liability
















The Company operates an employee pension scheme called the MS INTERNATIONAL plc Retirement and Death Benefits Scheme ("the Scheme"). IAS 19 requires disclosure of certain information about the Scheme as follows:










-


Until 5th April, 1997, the Scheme provided defined benefits and these liabilities remain in respect of service prior to 6th April, 1997. From 6th April, 1997 until 31st May, 2007 the Scheme provided future service benefits on a defined contribution basis.










-


The last formal valuation of the Scheme was performed at 7th May, 2021 by a professionally qualified actuary.










-


From 6th April, 2016 the Company directly pays the expenses of the Scheme. The total pension scheme expenses incurred by the Company during the period were £105,000 (2020: £113,000).










-


With effect from May 2021 the deficit reduction contributions paid into the Scheme by the Company have been increased to £900,000 per annum. The deficit reduction contributions will be paid on a quarterly basis with the first being paid on or after 1st July, 2021 and the last being due for payment on or before 1st April, 2028.

-


From 1st June, 2007 the Company has operated a defined contribution scheme for its UK employees which is administered by a UK pension provider. Member contributions are paid in line with this Scheme's documentation over the accounting period and the Company has no further obligations once the contributions have been made.

-


As at 31st October, 2021 the scheme liability was £6,491,000 (2020 - £9,075,000).










-


During the period, the Scheme liability has decreased by £604,000 (2020 - £512,000 increase). A remeasurement gain of £217,000 (2020 - £642,000 loss) has been recognised through other comprehensive income. It comprises of a £848,000 remeasurement gain compared to the interest income on the plan assets and a £631,000 actuarial loss due to changes in financial assumptions. The actuarial loss of £631,000 is primarily due to the increase in inflationary and salary increase assumptions, both of which increased the Scheme's liabilities at 31st October, 2021. There has been no change to the discount rate or any changes to demographic assumptions. The interest cost on the net defined benefit liability of £63,000 has been recognised through the income statement. The Scheme's liabilities have been reduced by pension fund deficit payments in the period of £450,000 (2020 - £200,000).










-


A £1,198,000 liability for unrecognised past service cost relating to GMP equalisation was recognised in the Consolidated income statement for the 52 weeks ended 27th April, 2019. A further £205,000 of previously unrecognised past service costs were recognised in the Consolidated income statement for the year ended 30th April, 2021. This liability has been remeasured and is included in the Scheme's liabilities at 31st October, 2021.



















14.  Commitments and contingencies
















The Company is contingently liable in respect of guarantees, indemnities and performance bonds given in the ordinary course of business amounting to £1,556,000 at 31st October, 2021 (2020 - £6,977,000).










In the opinion of the Directors, no material loss will arise in connection with the above matters.










The Group and certain of its subsidiary undertakings are parties to legal actions and claims which have arisen in the normal course of business. The results of actions and claims cannot be forecast with certainty, but the directors believe that they will be concluded without any material effect on the net assets of the Group.










 

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