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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Andrews Sykes Group PLC | AQSE:ASY.GB | Aquis Stock Exchange | Ordinary Share | GB0002684552 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 501.00 | 472.00 | 530.00 | 501.00 | 501.00 | 501.00 | 0.00 | 06:59:16 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Dec 2022 to Dec 2024
TIDMASY
RNS Number : 5787N
Andrews Sykes Group PLC
26 September 2023
26 September 2023
ANDREWS SYKES GROUP PLC
("Andrews Sykes" or the "Company" or the "Group")
Half Year Results
Unaudited results for the six months ended 30 June 2023
Summary of Results
Hot Features
Premium
Unaudited Unaudited
six months six months
ended ended
30 June 30 June
2023 2022
GBP000 GBP000
Revenue from continuing operations 38,843 37,903
EBITDA* from continuing operations 13,887 13,181
Operating profit 9,713 8,489
Profit for the financial period 7,534 6,477
Cash and cash equivalents 24,146 34,430
Net funds 24,803 21,741
(pence) (pence)
Basic earnings per share 17.88 15.36
Interim dividend declared per equity
share 11.90 11.90
Special dividend declared per equity
share 59.40 16.60
* Earnings before interest, taxation, depreciation, profit on the sale of property, plant and equipment and amortisation
Enquiries
Andrews Sykes Group plc T: +44 (0)1902 328 700 Carl Webb, Managing Director Ian Poole, Group Finance Director and Company Secretary Houlihan Lokey UK Limited (Nominated T: +44 (0)20 7484 4040 Advisor) Tim Richardson
CHAIRMAN'S STATEMENT
Overview
The Group's revenue for the 6 months ended 30 June 2023 (the "period") was GBP38.8 million, an increase of GBP0.9 million compared with the same period in 2022. Operating profit for the period was GBP9.7 million compared with GBP8.5 million in 2022, an increase of GBP1.2 million, reflecting the increased revenue and the absence of GBP0.5m France restructure costs which were incurred in 2022. The period turnover and operating profit are both record results. Overall, net funds decreased by GBP1.1 million from GBP25.9 million as at 31 December 2022 to GBP24.8 million as at 30 June 2023 largely as a result of GBP3.0 million additional right-of-use lease obligations arising from new property leases.
Operations review
Revenue at Andrews Sykes Hire in the UK continues to grow and improved by 5.6% compared with the same period in 2022. Our business in Europe continues to grow very strongly, with revenue growing 15.5% compared to the same period in 2022. This result was driven by an exceptional performance from our Luxembourg and Dutch subsidiaries, with revenues up 64.8% and 24.1% respectively on the same period in 2022 with a cold winter and the high early summer temperatures in June driving increasing demand in our heating and cooling products. Consequently, the combined operating profit for the UK and European hire businesses in the period was GBP1.1 million above the level achieved in 2022.
The previously announced restructure and depot closures in Climat Location, our France subsidiary, has contributed to a significantly reduced operating loss in France, with a loss of GBP0.1m being recognised in 2023. In addition, the group has further benefitted by not incurring any further restructure costs in the period whereas the same period in 2022 included GBP0.5m of restructure costs.
Andrews Air Conditioning and Refrigeration, our UK air conditioning installation business, continues to trade broadly in line with last few years but remains significantly down on 2019 levels. Whilst revenue decreased 11.7% in the period compared to the first six months of 2022, tight cost control meant operating profit increased by 1.8%.
Khansaheb Sykes, our business based in the UAE, continues to experience a difficult trading environment with revenue down 40.3% versus the first half of 2022. A restructure undertaken during the period has further reduced headcount in the UAE and rationalised our depots to one main trading depot in Sharjah. New senior management have recently been recruited and are having a positive impact. The reduced turnover in the UAE has resulted in operating profit being GBP0.4m lower to the first half of 2022.
Defined benefit pension scheme
Since the period end, the company has worked with the pension scheme Trustees and pension advisors, Hymans Robertson, to successfully de-risk its defined benefit scheme by completing a buy-in deal with Canada Life. This transaction, whilst significantly reducing the defined benefit pension scheme surplus recorded on the balance sheet, means that future liabilities are fully de-risked and the company will not be required to contribute significant cash payments into the pension scheme to fund adverse liability movements. During 2021 and 2022 the company contributed GBP2.6m of cash into the defined benefit pension scheme.
Profit for the financial period and Earnings per Share
Profit before tax for the period was GBP10.1 million compared with GBP8.5 million in the same period last year. This GBP1.6m increase is attributable to the GBP1.2 million improvement in operating profit, a reduced net foreign exchange gain on inter-company balances of GBP0.2 million due to the strengthening of Sterling compared with the Euro, and a net increase of GBP0.5 million in interest receivable resulting from the higher interest received on cash deposits.
The total tax charge for the period increased by GBP0.5 million to GBP2.6 million (2022: GBP2.1 million), an effective tax rate of 25.5% (2022: 24.0%). The increase in the overall effective rate of tax is driven by an increase in the UK corporation tax rate from 19% to 25% effective from April 2023, giving a blended rate of 23.5% for UK corporation tax in 2023.
Profit after tax in the period was GBP7.5 million (2022: GBP6.5 million). Basic earnings per share increased by 2.52 pence, or 16.4%, to 17.88 pence (2022: 15.36 pence) reflecting this increase in profit .
Dividends
The final dividend of 14.00 pence per ordinary share for the year ended 31 December 2022 was approved by members at the AGM held on 14 June 2023. Accordingly, on 16 June 2023 the Company made a total dividend payment of GBP5.9 million which was paid to shareholders on the register as at 26 May 2023.
The board continues to adopt the policy of returning value to shareholders whenever possible. The Group remains profitable, cash generative and financially strong. Accordingly, the board has decided to declare an interim dividend of 11.90 pence per ordinary share which in total amounts to GBP5.0 million.
In addition to the interim dividend, the board has assessed the company's ongoing cash requirements and has concluded that, as a result of the company's robust cash generation and de-risking of the defined benefit pension scheme, a portion of the current cash reserves are surplus to the company's requirements. The board has therefore decided to return this surplus capital to Andrews Sykes shareholders by way of a special dividend of 59.40 pence per ordinary share which in total amounts to GBP25.0 million. Both the interim and special dividends will be paid on 3 November 2023 to shareholders on the register as at 6 October 2023.
Outlook
Following the Company's strong first half performance, trading in the second half of the year to date has been more mixed. Whilst extreme summer temperatures in Southern Europe positively impacted demand for the Group's chillers in Italy, a more subdued summer season in the UK has limited the overall positive impact for the Group. Overall, Management remains confident of delivering full year results in line with the Board's expectations. In the longer term, management remains optimistic that the business will continue to improve but are mindful of the current economic climate and the impact that volatile energy prices and inflationary cost pressures can pose to the business and customer demand.
JJ Murray
Chairman
25 September 2023
Consolidated Income Statement
for the six months ended 30 June 2023
Unaudited Unaudited
six months six months
ended ended Year ended
30 June 30 June 31 December
Note 2023 2022 2022
GBP000 GBP000 GBP000
Revenue 2 38,843 37,903 83,007
Cost of sales (14,132) (15,338) (30,006)
------------ ------------ -------------
Gross profit 24,711 22,565 53,001
Distribution costs (7,321) (6,846) (14,936)
Administrative expenses (7,677) (7,230) (16,535)
Operating profit 9,713 8,489 21,530
EBITDA* 13,887 13,181 30,616
Depreciation and impairment losses (3,220) (3,444) (6,565)
Depreciation of right-of-use
assets (1,332) (1,528) (4,017)
Profit on the sale of property - - 866
Profit on the sale of plant and
equipment and right-of-use assets 378 280 630
--------------------------------------- ------------ ------------ -------------
Operating profit 9,713 8,489 21,530
--------------------------------------- ------------ ------------ -------------
Finance income 3 730 316 631
Finance costs 3 (332) (278) (610)
Profit before tax 10,111 8,527 21,551
Tax expense 4 (2,577) (2,050) (4,531)
------------ ------------ -------------
Profit for the period from continuing
operations attributable to equity
holders of the Parent Company 7,534 6,477 17,020
------------ ------------ -------------
Earnings per share from continuing
operations:
Basic and diluted 5 17.88p 15.36p 40.36p
Dividend per equity share paid
during the period 14.00p 12.50p 41.00p
Proposed dividend per equity
share 11.90p 11.90p 14.00p
Proposed special dividend per
equity share 59.40p 16.60p -
(*) Earnings before interest, taxation, depreciation, profit on sale of property, plant and equipment and amortisation.
Consolidated Statement of Comprehensive Total Income
for the six months ended 30 June 2023
Unaudited Unaudited
six months six months
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP000 GBP000 GBP000
Profit for the period 7,534 6,477 17,020
Other comprehensive income
Currency translation differences on
foreign currency operations (459) 926 1,222
Foreign exchange differences on IFRS
16 adjustments 16 - (32)
Net other comprehensive (expense)/
income that may be reclassified to
profit and loss (443) 926 1,190
Re-measurement of defined benefit
pension assets and liabilities (17) 2,567 823
Related asset restriction (49) (898) (735)
Net other comprehensive income that
will not be reclassified to profit
and loss (66) 1,669 88
------------ ------------ -------------
Other comprehensive (expense)/ income
for the period net of tax (509) 2,595 1,278
------------ ------------ -------------
Total comprehensive income for the
period attributable to equity holders
of the Parent Company 7,025 9,072 18,298
------------ ------------ -------------
Consolidated Balance Sheet
At 30 June 2023
Unaudited Unaudited
30 June 30 June 31 December
2023 2022 2022
GBP000 GBP000 GBP000
As restated
Non-current assets
Property, plant and equipment 17,967 20,091 19,361
Right-of-use assets 12,822 12,125 9,667
Deferred tax assets 195 163 229
Defined benefit pension
scheme surplus 5,445 6,105 5,353
---------- ------------ ------------
36,429 38,484 34,610
Current assets
Stocks 3,208 5,205 4,434
Trade and other receivables 20,012 18,749 19,535
Current tax asset 188 - 423
Other financial assets 15,000 - 16,700
Cash and cash equivalents 24,146 34,430 20,518
62,554 58,384 61,610
---------- ------------ ------------
Current liabilities
Trade and other payables (17,252) (14,178) (16,695)
Current tax liabilities - (485) (810)
Right-of-use lease obligations (2,555) (2,625) (2,505)
(19,807) (17,288) (20,010)
---------- ------------ ------------
Net current assets 42,747 41,096 41,600
---------- ------------ ------------
Total assets less current
liabilities 79,176 79,580 76,210
Non-current liabilities
Right-of-use lease obligations (11,788) (10,064) (8,817)
Provisions (2,015) (2,096) (2,682)
(13,803) (12,160) (11,499)
Net assets 65,373 67,420 64,711
---------- ------------ ------------
Equity
Called up share capital 420 422 421
Share premium 13 13 13
Retained earnings 60,977 62,845 59,872
Translation reserve 3,715 3,894 4,158
Other reserve 248 246 247
---------- ------------ ------------
Total equity 65,373 67,420 64,711
---------- ------------ ------------
Consolidated Cash Flow Statement
for the six months ended 30 June 2023
Unaudited Unaudited
six months six months
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP000 GBP000 GBP000
Operating activities
Profit for the period 7,534 6,477 17,020
Adjustments for:
Tax charge 2,577 2,050 4,531
Finance costs 332 278 610
Finance income (730) (316) (631)
Profit on disposal of plant
and equipment and right-of-use
assets (378) (280) (630)
Profit on disposal of property - - (866)
Depreciation of property,
plant and equipment 3,220 3,444 6,565
Depreciation of right-of-use
assets 1,332 1,528 4,017
Difference between pension
contributions paid and
amounts recognised in the
Income Statement 36 (628) (1,152)
Decrease/ (increase) in
inventories 1,155 639 (1,206)
(Increase)/ decrease in
receivables (791) 1,669 1,232
Increase in payables 766 330 2,492
Movement in provisions (667) 125 711
Cash generated from continuing
operations 14,386 15,316 32,693
Interest paid (332) (278) (610)
Corporation tax paid (3,185) (1,553) (4,487)
Net cash inflow from operating
activities 10,869 13,485 27,596
Investing activities
Disposal of property,
plant and equipment 485 302 1,906
Purchase of property,
plant and equipment (2,132) (2,380) (2,463)
Cash on deposit with greater
than 3 month maturity 1,700 - (16,700)
Interest received 522 256 265
Net cash inflow/ (outflow)
from investing activities 575 (1,822) (16,992)
Financing activities
Loan repayments - (3,000) (3,000)
Capital repayments for
right-of-use lease
Obligations (1,402) (1,471) (2,849)
Equity dividends paid (5,898) (5,272) (17,292)
Equity dividends forfeited - - 85
Share repurchase (465) - -
Net cash outflow from
financing activities (7,765) (9,743) (23,056)
------------ ------------ -------------
Net increase in cash and
cash equivalents 3,679 1,920 (12,452)
Cash and cash equivalents
at the start of the period 20,518 32,443 32,443
Effect of foreign exchange
rate changes (51) 67 527
------------ ------------ -------------
Cash and cash equivalents
at the end of the period 24,146 34,430 20,518
------------ ------------ -------------
Consolidated Statement of Changes in Equity
for the six months ended 30 June 2023
Attributable
Capital to equity
Share Translation redemption UAE Netherlands holders
Share premium reserve reserve legal capital Retained of the
capital reserve reserve earnings parent
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 31 December
2021 422 13 2,968 158 79 9 59,971 63,620
Profit for the
period - - - - - - 6,477 6,477
Other
comprehensive
income for
the
period net of
tax - - 926 - - - 1,669 2,595
Total
comprehensive
income - - 926 - - - 8,146 9,072
Dividends paid - - - - - - (5,272) (5,272)
Total of
transactions
with
shareholders - - - - - - (5,272) (5,272)
At 30 June
2022 422 13 3,894 158 79 9 62.845 67,420
Profit for the
period - - - - - - 10,543 10,543
Other
comprehensive
(expense)/
income
for the
period
net of tax - - 264 - - - (1,581) (1,317)
-------- --------- ------------- ------------ --------- ------------ ---------- --------------
Total
comprehensive
(expense)/
income - - 264 - - - 8,962 9,226
Dividends paid - - - - - - (12,020) (12,020)
Share and
dividend
forfeiture (1) - - 1 - - 85 85
-------- --------- ------------- ------------ --------- ------------ ---------- --------------
Total of
transactions
with
shareholders (1) - - 1 - - (11,935) (11,935)
At 31 December
2022 421 13 4,158 159 79 9 59,872 64,711
Profit for the
period - - - - - - 7,534 7,534
Other
comprehensive
income for
the
period net of
tax - - (443) - - - (66) (509)
Total
comprehensive
income - - (443) - - - 7,468 7,025
Dividends paid - - - - - - (5,898) (5,898)
Share
repurchase (1) - - 1 - - (465) (465)
Total of
transactions
with
shareholders (1) - - 1 - - (6,363) (6,363)
At 30 June
2023 420 13 3,715 160 79 9 60,977 65,373
-------- --------- ------------- ------------ --------- ------------ ---------- --------------
Notes to the Interim Financial statements
1 General information and accounting policies
These interim financial statements have been prepared in accordance with the recognition and measurement principles of international accounting standards in conformity with the requirements of the Companies Act 2006 .
The information for the 12 months ended 31 December 2022 does not constitute the Group's statutory accounts for 2022 as defined in Section 434 of the Companies Act 2006. Statutory accounts for 2022 have been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. These interim financial statements, which were approved by the Board of Directors on 26 September 2023, have not been audited or reviewed by the auditors .
Basis of preparation
The interim financial statement has been prepared using the historical cost basis of accounting except for:
(i) Properties held at the date of transition to IFRS which are stated at deemed cost;
(ii) Assets held for sale which are stated at the lower of (i) fair value less anticipated disposal costs and (ii) carrying value;
(iii) Derivative financial instruments (including embedded derivatives) which are valued at fair value; and
(iv) Pension scheme assets and liabilities calculated at fair value in accordance with IAS 19
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 the AIM Rules issued by the London Stock Exchange.
Accounting policies
The principal accounting policies applied in preparing the interim Financial Statements comply with international accounting standards in conformity with the requirements of the Companies Act 2006 and are consistent with the policies set out in the Annual Report and Accounts for the year ended 31 December 2022.
No new standards or interpretations issued since 31 December 2022 have had a material impact on the accounting of the Group.
Functional and presentational currency
The financial statements are presented in pounds Sterling because that is the functional currency of the primary economic environment in which the group operates.
2 Revenue
An analysis of the Group's revenue is as follows:
Unaudited Unaudited
six months six months
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP000 GBP000 GBP000
Continuing operations
Revenue outside the scope of IFRS
15 and recognised as lease income
in accordance with IFRS 16:
Hire 35,862 33,772 74,612
Revenue recognised at a point in time
in accordance with IFRS 15:
Sales 1,762 2,739 5,482
Maintenance 674 665 1,357
Installation and sale
of units 545 727 1,556
------------ ------------ --------------
Group consolidated revenue from the
sale of goods and provision of services 38,843 37,903 83,007
------------ ------------ --------------
The geographical analysis of the Group's revenue by origination
is:
Unaudited Unaudited
six months six months
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
GBP000 GBP000 GBP000
United Kingdom 24,111 23,225 50,018
Europe 12,148 10,365 24,204
Middle East and Africa 2,584 4,313 8,785
38,843 37,903 83,007
------------ ------------ --------------
The geographical analysis of the Group's revenue by destination is not materially different to that by origination.
3 Finance income and costs
Unaudited Unaudited
six months six months
ended ended Year ended
30 June 30 June 31 December
2023 2022 2022
Finance income GBP000 GBP000 GBP000
Net interest on net defined benefit
pension surplus 194 60 124
Intertest receivable on bank deposit
accounts 522 31 265
Inter-company foreign exchange gains 14 225 242
730 316 631
------------ ------------ -------------
Finance costs
Interest charge on bank loans and
overdrafts - (25) (33)
Interest charge on right-of-use lease
obligations (332) (253) (577)
Inter-company foreign exchange losses - - -
(332) (278) (610)
------------ ------------ -------------
4 Income tax expense
The total effective tax charge for the financial period represents the best estimate of the weighted average annual effective tax rate expected for the full financial year applying tax rates that have been substantively enacted by the balance sheet date. In the UK budget on 15 March 2021, the chancellor announced that the rate of corporation tax in the UK will increase from 19% to 25% with effect from 1 April 2023. UK corporation tax has been provided at 23.5% being the weighted tax rate in the UK for 2023. Deferred tax has been calculated based on the rates that the directors anticipate will apply when the temporary timing differences are expected to reverse .
Unaudited Unaudited
six months six months Year ended
ended ended 31 December
30 June 30 June 2022
2023 2022
GBP000 GBP000 GBP000
Current tax
UK corporation tax at 23.5% (June
and December 2022: 19%) 1,709 1,139 2,538
Adjustments in respect of prior periods - - (55)
------------ ------------ --------------
1,709 1,139 2,483
Overseas tax 835 644 2,088
------------ ------------ --------------
Total current tax charge 2,544 1,783 4,571
------------ ------------ --------------
Deferred tax
Origination and reversal of timing
differences 33 126 (173)
Adjustments in respect of prior periods - 141 133
------------ ------------ --------------
Total deferred tax charge/ (credit) 33 267 (40)
------------ ------------ --------------
Total tax charge for the financial
period 2,577 2,050 4,531
------------ ------------ --------------
5 Earnings per share
Basic earnings per share
The basic figures have been calculated by reference to the weighted average number of ordinary shares in issue and the earnings as set out below. There are no discontinued operations in any period .
Unaudited Unaudited
six months six months Year ended
ended ended 31 December
30 June 30 June 2022
2023 2022
Weighted average number of ordinary
shares 42,135,823 42,174,359 42,172,124
------------ ------------ --------------
GBP000 GBP000 GBP000
Basic earnings 7,534 6,477 17,020
------------ ------------ --------------
pence pence pence
Basic earnings per ordinary share 17.88 15.36 40.36
------------ ------------ --------------
Diluted earnings per share
There were no dilutive instruments outstanding as at 30 June 2023 or either of the comparative periods and therefore there is no difference in the basic and diluted earnings per share for any of these periods. There were no discontinued operations in any period .
6 Dividend payments
Dividends declared and paid on ordinary one pence shares during the 6 months ended 30 June 2023 were as follows:
Paid during the six
months ended 30 June
2023
Total dividend
paid
Pence per GBP000
share
Final dividend for the year ended
31 December 2022 paid on 16 June 2023
to members on the register as at 26
May 2023 14.00p 5,898
The above dividend was charged against reserves during the 6 months ended 30 June 2023.
On 26 September 2023 the directors declared an interim dividend of 11.90 pence per ordinary share which in total amounts to GBP5,004,000. In addition, a special dividend of 59.40 pence per ordinary share which in total amounts to GBP24,977,000 was also declared. These will be both be paid on 3 November 2023 to shareholders on the register as at 6 October 2023 and will be charged against reserves in the second half of 2023.
Dividends declared and paid on ordinary one pence shares during the 6 months ended 30 June 2022 were as follows:
Paid during the six
months ended 30 June
2022
Total dividend
paid
Pence per GBP000
share
Final dividend for the year ended
31 December 2021 paid on 17 June 2022
to members on the register as at 27
May 2022 12.50p 5,272
The above dividend was charged against reserves during the 6 months ended 30 June 2022.
Dividends declared and paid on ordinary one pence shares during the 12 months ended 31 December 2022 were as follows:
Paid during the year ended
31 December 2022
Total dividend
paid
Pence per share GBP000
Final dividend for the year ended
31 December 2021 paid on 17 June 2022
to members on the register as at 27
May 2022 12.50p 5,272
Interim dividend declared on 27 September
2022 and paid on 4 November 2022 to
members on the register as at 7 October
2022 11.90p 5,019
Special dividend declared on 27 September
2022 and paid on 4 November 2022 to
members on the register as at 7 October
2022 16.60p 7,001
------------------ -----------------
41.00p 17,292
------------------ -----------------
The above dividends were charged against reserves during the 12 months ended 31 December 2022.
7 Pensions
The Group closed the UK Group defined benefit pension scheme to future accrual as at 29 December 2002. The assets of the defined benefit pension scheme continue to be held in a separate trustee administered fund. Over recent years the Group has taken steps to manage the ongoing risks associated with its defined benefit liabilities.
As at 30 June 2023 the Group had a net defined benefit pension scheme surplus, calculated in accordance with IAS 19 using the assumptions as set out below, of GBP8,377,000 (30 June 2022: GBP9,392,000; 31 December 2022: GBP8,236,000). The asset has been recognised in the financial statements as the directors are satisfied that it is recoverable in accordance with IFRIC 14.
Following the triennial recalculation of the funding deficit as at 31 December 2019, a revised schedule of contributions and recovery plan was agreed with the pension scheme trustees in March 2021 and was effective from 1 January 2021. In accordance with this schedule of contributions and recovery plan, the Group will be making regular contributions of GBP10,000 per month for the period 1 January 2023 to 31 December 2023, and GBP10,000 per month for the period 1 January 2024 to 31 December 2025 or until a revised schedule of contributions is agreed, if earlier. Consequently, the Group expects to make total contributions to the defined benefit pension scheme of GBP120,000 during 2023.
Assumptions used to calculate the scheme surplus
The IAS 19 figures are based on a number of actuarial assumptions as set out below, which the actuaries have confirmed they consider appropriate.
30 June 30 June 31 December
2023 2022 2022
Rate of increase in pensionable salaries n/a n/a n/a
Rate of increase in pensions in payment 3.15% 3.15% 3.15%
Discount rate 5.20% 3.75% 4.75%
Inflation assumption - RPI 3.15% 3.15% 3.15%
Inflation assumption - CPI 2.55% 2.55% 2.55%
Percentage of members taking maximum
tax-free lump sum on retirement 75% 75% 75%
The demographic assumptions used for 30 June 2023, were the same as used in 31 December 2022, 30 June 2022 and the last full actuarial valuation performed as at 1 April 2020.
Assumptions regarding future mortality experience are set based on advice in accordance with published statistics. The mortality table used at 30 June 2023, 30 June 2022 and 31 December 2022 is 100% S3PA CMI2021 with a 1.25% per annum long term improvement for both males and females, heavy tables for males and medium tables for females.
Valuation
The defined benefit scheme funding has changed under IAS 19 as follows:
Unaudited Unaudited
six months six months Year to
Funding status to to 31 December
30 June 30 June 2022
2023 2022 GBP000
GBP000 GBP000
Scheme assets at end of period 35,096 40,648 36,809
Benefit obligations at end of period (26,719) (31,256) (28,573)
---------------------- ------------------------ --------------
Surplus in scheme 8,377 9,392 8,236
Impact of asset restriction (2,932) (3,287) (2,883)
---------------------- ------------------------ --------------
Net pension asset recognised on the
balance sheet 5,445 6,105 5,353
The increase in the pension surplus since December 2022 is mainly due to a decrease in the value of liabilities as a consequence of an increase in bond yields increasing the discount rate.
8 Net funds and movement in financing liabilities
Unaudited Unaudited
six months six months Year ended
ended ended 31 December
30 June 30 June 2022
2023 2022
GBP000 GBP000 GBP000
Cash and cash equivalents per consolidated
cashflow statement 24,146 34,430 20,518
Other financial assets 15,000 - 16,700
------------ ------------ --------------
Gross funds 39,146 34,430 37,218
Bank loans at the beginning of the
period - (3,000) (3,000)
Loans repaid - 3,000 3,000
Bank loans at the end of the period - - -
------------ ------------ --------------
Right-of-use lease obligations at
the beginning of the period (11,322) (12,934) (12,934)
Capital repayments for right-of-use
lease obligations 1,402 1,472 2,849
New right-of-use leases entered into
during the period (4,575) (1,204) (1,856)
Non-cash movements re: termination
of right-of-use lease obligations 87 77 796
Foreign exchange 65 (100) (177)
------------ ------------ --------------
Right-of-use lease obligations at
the end of the period (14,343) (12,689) (11,322)
------------ ------------ --------------
Gross debt (14,343) (12,689) (11,322)
------------ ------------ --------------
Net funds 24,803 21,741 25,896
------------ ------------ --------------
9 Distribution of interim financial statements
Following a change in regulations in 2008, the Company is no longer required to circulate this half year report to shareholders. This enables us to reduce costs associated with printing and mailing and to minimise the impact of these activities on the environment. A copy of the interim financial statements is available on the Company's website, www.andrews-sykes.com .
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END
IR BLGDCDGDDGXU
(END) Dow Jones Newswires
September 26, 2023 02:00 ET (06:00 GMT)
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