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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Marshall Motor Holdings Plc | LSE:MMH | London | Ordinary Share | GB00BVYB2Q58 | ORD 64P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 397.00 | 394.00 | 400.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMMMH
RNS Number : 9729N
Marshall Motor Holdings PLC
15 August 2017
15 August 2017
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Unaudited interim results for the six months ended 30 June 2017
Marshall delivers another record trading result
Marshall Motor Holdings Plc, one of the UK's leading automotive retail and leasing groups, is pleased to announce its unaudited interim results for the six months ended 30 June 2017 ("H1") (the "Period").
Financial summary
Hot Features
Premium
H1 H1 Var FY
2017 2016 % 2016
-------- ------- ------- --------
Revenue (GBPm) 1,187.4 826.4 43.7% 1,899.4
Gross Profit (%) 11.6% 11.9% -29bps 11.6%
Underlying profit before tax(1) (GBPm) 18.6 14.0 32.9% 25.4
Reported profit before tax (GBPm) 18.6 12.1 53.5% 22.2
Dividend Per Share (p) 2.15p 1.80p 19.4% 5.50p
Adjusted Net Debt(2) (GBPm) (35.1) (32.4) n/a (54.5)
Financial highlights
-- Underlying profit before tax up 32.9% to GBP18.6m (H1 2016: GBP14.0m) -- Record results from retail segment: PBT growth of 38.2% -- Interim dividend of 2.15p per share (2016 interim dividend: 1.80p)
-- Adjusted net debt (excluding leasing loans) at 30 June 2017: GBP35.1m. Adjusted net debt/EBITDA: 0.7x
-- Significant balance sheet capacity underpinned by GBP112.5m of freehold/long leasehold property.
-- Net assets at 30 June 2017 of GBP2.04 per share (30 June 2016: GBP1.78 per share)
Operational highlights
-- Good like-for-like(3) revenue growth of 6.7%
-- New car retail unit sales up 32.7% (like-for-like down 0.4%, outperforming UK new car retail market which was down 4.8%)
-- Used car unit sales up 39.7% (like-for-like up 5.8%)
-- Aftersales revenues up 43.1% (like-for-like up 2.3%) driven by a strong service performance
-- Ridgeway acquisition delivering to plan and making a material profit before tax contribution of GBP5.4m (H1 2016: GBP1.0m)
-- Continued good levels of profitability in the leasing segment with further fleet growth and a number of new customer account wins.
-- Focus and control of operating expenses at 9.7% of revenue (H1 2016: 10.1%)
-- Further investment in the Group's property portfolio with GBP12.3m retail capital expenditure during the Period.
Daksh Gupta, Group Chief Executive, said:
"The Board is pleased to announce another period of record trading, underpinned by like-for-like growth together with the contribution from Ridgeway which the Group acquired on 25 May 2016. In the two years since listing, the Group has successfully completed a number of retail acquisitions transforming its scale, geographic footprint and franchise portfolio as well as significantly growing its profitability. This, together with a strong balance sheet, leaves the enlarged Group well positioned to execute its growth strategy moving forward."
(1) Underlying profit before tax is presented excluding non-underlying items (see note 5)
(2) Adjusted net debt excludes GBP65.9m asset backed finance relating to the leasing segment (2016: GBP60.7m)
(3) "Like-for-like" is defined in note 1 to the interim financial statements
For further information and enquiries please contact:
Marshall Motor Holdings c/o Hudson Sandler Tel: plc +44 (0) 20 7796 4133 Daksh Gupta, Group Chief Executive Mark Raban, CFO Investec Bank plc (NOMAD Tel: +44 (0) 20 7597 4000 & Broker) Christopher Baird David Flin David Anderson Hudson Sandler Tel: +44 (0) 20 7796 4133 Michael Sandler Nick Lyon Alex Brennan
Notes to Editors
About Marshall Motor Holdings plc (www.mmhplc.com)
The Group's principal activities are the sale and repair of new and used vehicles through Marshall Motor Group and the leasing of vehicles through Marshall Leasing. The Group's businesses have a total of 104 franchises covering 24 brands, operating from 90 locations across 26 counties in England. In addition, the Group operates five trade parts specialists, five used car centres, five standalone body shops and one pre delivery inspection centre.
In May 2017 the Group was recognised by the Great Place to Work Institute, being ranked the 22(nd) best place to work in the UK (large company category). This was the seventh year in succession that the Group has achieved Great Place to Work status.
In November 2016 Marshall Leasing was named Fleet Service Company of the Year 2016 by the Association of Car Fleet Operators (ACFO), an award it also won in 2010 and 2013.
Cautionary statement
This announcement contains unaudited information based on management accounts and forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and undue reliance should not be placed on any such statements because they speak only as at the date of this document and are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. MMH undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.
Introduction
I am delighted to report that the Group has delivered another record trading result during the Period which continues the trend of strong financial growth since our IPO in April 2015.
Retail Segment Overview
Our retail segment has again reported material growth in profit before tax, up 38.2%. This was driven by continued growth in the like-for-like portfolio and a contribution from the strategic acquisition of Ridgeway Garages (Newbury) Limited ("Ridgeway") acquired on 25 May 2016.
Ridgeway
The acquisition of Ridgeway extended the Group's geographical reach into the affluent southern Home Counties and strengthened relationships with key brand partners. The integration has progressed in line with plan and is nearing completion. From both an operational and a financial perspective, Ridgeway is performing in line with expectations, contributing profit before tax during the Period of GBP5.4m (H1 2016: GBP1.0m).
New Vehicles
During the Period, overall UK new vehicle registrations decreased by 1.3% including the impact of self/dealer registrations. New vehicle registrations to retail customers decreased by 4.8% with registrations to fleet customers growing by 1.6%.
Against this background, the Group enjoyed strong new retail unit sales during the Period, up 32.7% in total. The Group continued to outperform the UK new retail vehicle market with a marginal decline in unit sales to retail customers of 0.4% on a like-for-like basis. As expected, the Group experienced a like-for-like decline in new unit vehicle sales to fleet customers following a commercial decision to withdraw from some low margin business.
Used Vehicles
Like-for-like sales of used vehicle units during the Period showed good growth, up 5.8%, with a strengthening trend throughout the Period, although there was ongoing margin pressure.
Aftersales
The Group has also shown continued like-for-like growth within aftersales across both revenue and margin, including a strong service performance.
Leasing Segment Overview
Our leasing segment has continued to deliver good levels of profitability during the Period, albeit below the exceptional levels reported in the comparable period last year. This was largely driven by a reduced level of de-fleet activity and lower levels of disposal unit profitability.
During the Period, the leasing segment was successful in winning a number of new customer accounts and, with a strong order bank at the end of the Period, is well positioned to achieve future growth in the fleet, focused on the delivery of its service-led B2B strategy, in the full year and medium term.
At 30 June 2017, the leasing fleet was 6,290 vehicles, up 3.5% versus the same date last year (H1 2016: 6,077).
Employee Engagement
The Group has continued to focus on all aspects of employee and colleague engagement and the Board is delighted to report that this has again been recognised by the Great Place to Work Institute with the Group being ranked as 22nd best place to work in the UK (large company category). We are particularly delighted with the continued ranking for 3 years within the survey, showing our committed investment in our people.
During H1 2016 the Group launched a key initiative to guarantee Sales Executive earnings during the first year of employment. Whilst too early to draw firm conclusions, the Board is pleased with the initial results of the initiative which is helping to attract new talent to the organisation, reducing staff turnover and driving productivity.
Balance Sheet Capacity
The Group remains well positioned to continue to execute its growth strategy moving forward, supported by significant balance sheet capacity. As at 30 June 2017, adjusted net debt (excluding asset backed leasing loans of GBP65.9m) was GBP35.1m (30 June 2016: GBP32.4m) representing an adjusted net debt to EBITDA ratio of 0.7x. The Group has significant balance sheet capacity including GBP112.5m of freehold/long leasehold property.
Financial Review
Group turnover increased by 43.7% to GBP1,187.4m (H1 2016: GBP826.4m). Like-for-like revenues showed strong growth of 6.7% with revenues in new, used and aftersales all showing growth against the same period last year.
Gross margin at 11.6% was 29 bps below the same period last year, driven primarily by margin investment in used vehicles to grow volume together with lower unit disposal profitability within the leasing segment.
Operating expenses of GBP115.2m were 37.7% higher than in the same period last year, primarily driven by the impact of Ridgeway. The enlarged scale of the Group combined with robust cost management contained operating expenses to 9.7% of revenue compared to 10.1% in the same period last year. As expected, underlying unallocated central costs of GBP4.9m were GBP1.0m higher the same period last year. This was largely driven by increased finance costs and additional infrastructure investment following the acquisition of Ridgeway.
Finance costs of GBP3.9m were GBP1.5m higher than the same period last year, as expected, driven by increased costs associated with the Group's revolving credit facility and increased stock funding charges. These additional costs include amortisation of arrangement fees and non-utilisation charges.
The reported tax rate for the Period of 22.2% is lower than the same period last year (H1 2016: 25.5%) because of the impact of disallowable transaction costs in H1 2016.
The Group's balance sheet remains strong. At 30 June 2017, adjusted net debt (excluding leasing loans) was GBP35.1m (2016: GBP32.4m). This represents a conservative pro-forma adjusted net debt/EBITDA of 0.7x, well within the Group's target range.
Over the longer term, the Board continues to believe it is in the best interests of all stakeholders that the Group maintains a sound financial position. In this respect, the Board targets net bank indebtedness (excluding leasing segment loans) of not more than 1.25x net debt/EBITDA within its future results. This leverage may rise for a period of time towards the Group's banking facility limit of not more than 3.0x should an exceptional investment opportunity arise.
A GBP120m three year unsecured, committed banking facility ("RCF") was put in place in May 2016 for general corporate purposes including acquisitions and working capital requirements. During the Period, the Group exercised an option to extend the facility for a further year to 2020. At 30 June 2017, freehold/long leasehold property (including assets under construction) totalled GBP112.5m (2016: GBP98.2m) and net assets were GBP158.0m (2016: GBP137.4m) equating to GBP2.04 per share (2016: GBP1.78 per share).
The Group remains on track with its three year capital investment programme, incurring GBP12.3m of retail capital expenditure in the Period.
Continuing the Group's strategy of expansion with existing brand partners in new geographic territories, during the Period the Group completed the acquisition of Leeds Volvo for GBP77k, further strengthening its position as the largest franchise partner of Volvo Car UK by number of sites.
In addition, the Group completed the sale of a vacant freehold site in Totton, Southampton, acquired as part of the acquisition of Ridgeway, for GBP2.0m.
Interim Dividend
In line with the Group's dividend policy, the Board is pleased to announce an interim dividend of 2.15p per share (2016 interim dividend: 1.80p). The dividend will be paid by 22 September 2017 to shareholders who are on the Company's register at close of business on 25 August 2017. The Board intends to maintain a progressive dividend policy whereby dividends are covered between 4 to 5 times underlying earnings and paid in an approximate one-third (interim dividend) and two-thirds (final dividend) split.
Operating Review: Retail Segment
Following the addition of Leeds Volvo in June 2017, the retail segment now consists of 104 franchises trading from 90 sites in 26 counties in England. The Group operates a balanced portfolio of volume, prestige and alternate premium brands, including all of the top five premium brands. The Group's diverse portfolio means it represents manufacturer brands accounting for around 84% of all new vehicle sales in the UK.
The Board believes this diversified spread of representation is a key strength of the business. In addition, the Group believes it has headroom with its key manufacturer partners for potential future acquisitions in what remains a consolidating market.
The integration of Ridgeway is in line with plan and is now substantially complete. As a result of the integration, the enlarged Group has enjoyed a number of commercial and efficiency benefits. The ex-Ridgeway sites contributed profit before tax of GBP5.4m (2016: GBP1.0m) during the Period, in line with expectations.
The Group continues to leverage the benefits of the internet and social media. The acquisition of the web domain marshall.co.uk in H2 of 2016, combined with the acquisition of Ridgeway, has led to an increase in web traffic of c.20%. The Group has received 5 industry awards for its social media activity during 2017 including "Best use of Social Media" and "Most Influential Franchised Dealer".
Retail capital expenditure during the Period was GBP12.3m (H1 2016: GBP12.0m). As previously reported, the Group completed the construction of three major JLR dealerships in H2 last year. The transition to the new sites has progressed well and the customer feedback obtained so far has been very good. During the Period the Group has continued to focus on two further major developments:
-- Construction of our new Audi dealership at a freehold site in Exeter is nearing completion and is scheduled to open in Q3 2017;
-- Construction of a new Jaguar Land Rover dealership at a new franchise point in Newbury commenced during H2 2016 as expected and is scheduled to open in Q4 2017.
We have planned for some disruption to existing businesses at these sites over the period of development and initial transition.
Six months ended 30 June 2017
Revenue Gross Profit
GBPm mix* GBPm mix*
----------- --------- ----------- -------------
New Car 611.2 51.3% 45.1 33.7%
Used Car 458.2 38.4% 31.2 23.4%
Aftersales 123.3 10.3% 57.3 42.9%
Internal Sales (24.9) - - -
Total 1,167.8 100.0% 133.6 100.0%
=========== ========= =========== =============
Six months ended 30 June 2016
Revenue Gross Profit
GBPm mix* GBPm mix*
---------- --------- ---------- --------------
New Car 431.0 52.3% 30.8 33.0%
Used Car 306.8 37.2% 22.8 24.4%
Aftersales 86.2 10.5% 39.7 42.6%
Internal Sales (17.9) - - -
Total 806.1 100.0% 93.4 100.0%
========== ========= ========== ==============
*Revenue and Gross profit mix calculated excluding internal sales
New Vehicles
H1 H1 Variance
2017 2016 Total LFL
New Retail Units 16,902 12,741 32.7% (0.4%)
Fleet Units 11,026 9,143 20.6% (8.7%)
------ ------ --------- ----------
Total New Units 27,928 21,884 27.6% (3.8%)
====== ====== ========= ==========
During the Period, the Group increased its total new car unit sales by 27.6% (like-for-like declined by 3.8%). The like-for-like decline was largely driven by a commercial decision to withdraw from certain low margin fleet business. Like-for-like unit sales to fleet customers therefore declined by 8.7%.
Unit sales to retail customers declined by 0.4%, significantly outperforming the wider UK retail market which recorded a decline of 4.8%. As anticipated, Q1 was particularly strong as some customers pulled forward purchases ahead of changes to Vehicle Excise Duty which took effect on 1 April 2017.
New car gross margin at 7.4% was 23bps ahead of the comparable period last year. This benefited from an increased premium franchise mix following the Ridgeway acquisition and a reduced mix of lower margin fleet business.
Personal Contract Purchases agreements (PCPs), offered primarily by manufacturer finance companies, remain a popular method for financing new vehicles and offer customers a number of potential benefits. The finance companies make individual finance approval decisions and offer customers a guaranteed future value for the vehicle at the end of the term. During the Period, 83% of the Group's financed vehicle purchases were made using PCP products. This gives the Group excellent visibility over the vehicle replacement cycle and drives strong levels of renewal business.
Total new car gross profit of GBP45.1m was up by 46.3% versus the same period last year.
Used Vehicles
H1 H1 Variance
2017 2016 Total LFL
------ ------ ---------- -------
Total Used Units 23,716 16,976 39.7% 5.8%
====== ====== ========== =======
Used car unit sales increased by 39.7% versus the same period last year and 5.8% on a like-for-like basis.
The Group has enjoyed a strong growth in used vehicle sales, driven by a disciplined stocking policy and leveraging the benefits of an enlarged stock pool from the Ridgeway and SG Smith acquisitions. Some margin investment was necessary to drive volume and stock turnover and at 6.8%, gross margin was 62bps below the comparable period last year.
Since the strategic acquisition of Ridgeway, the Group's on-line presence has significantly improved; a key lever in selling used vehicles to a much broader geographical market and audience. The domain name marshall.co.uk was acquired in the second half of 2016 which is a more customer focused URL which has driven improved search engine optimisation. In response to the growing mobile device usage, the Group successfully launched the Marshall used car app during the Period, providing customers full access to Group used car and van stock pools across all brands. We will continue to look for new ways to drive efficiencies and improve the customer journey to deliver on our strategy of providing retailing excellence.
PCPs are increasing in popularity in the financing of used vehicles, accounting for 62% of financed vehicles in the Period versus 55% in 2016. Returns of three / four year old ex-PCP vehicles are providing a ready source of well maintained, attractive used cars for the Group.
Total used car gross profit of GBP31.2m was up by 36.9% versus the same period last year.
Aftersales
H1 H1 Variance
2017 2016 Total LFL
----- ---- ----- ----
Revenue (GBPm) 123.4 86.2 43.1% 2.3%
===== ==== ===== ====
Aftersales involves the servicing, maintenance and repair of vehicles. The Group also operates five standalone body shops, one standalone central PDI facility and five Trade Parts Centres.
Aftersales has continued to enjoy further growth as a result of an increased vehicle parc and the Group's retention strategy through service plans. Overall aftersales revenues grew by 43.1% with gross margin at 46.5%, up from 46.1% in the same period last year.
On a like-for-like basis, aftersales revenues grew 2.3%, including a particularly strong service performance. The acquisition of Ridgeway has improved the Group's aftersales capability through the addition of a 10 acre PDI centre located in Newbury. This provides additional scale and flexibility for both retail and corporate vehicle preparation.
Total aftersales gross profit of GBP57.3m was up by 44.4% versus the same period last year.
Operating Review: Leasing Segment
H1 H1 Variance
--------
2017 2016
----- ----- --------
Additions 1,012 1,134 (10.8%)
Disposals 914 1,086 (15.8%)
----- ----- --------
Fleet 6,290 6,077 3.5%
===== ===== ========
The leasing segment achieved profit before tax of GBP2.4m during the Period, a reduction of 11.0% versus the same period last year. The segment has continued to grow its fleet which, at 6,290 vehicles at 30 June 2017, was 3.5% ahead of the same date last year and 1.5% ahead of the position at 31 December 2016.
The segment has continued to focus on the delivery of its business-to-business strategy offering a service-led, high added value proposition to all its clients. During the Period, the leasing segment was successful in winning a number of new customer accounts and, with a strong order bank at the end of the Period, is well positioned to achieve future growth in the fleet.
Robust risk management and control of residual values remains a core discipline of the leasing segments business model. During the Period the used car market remained relatively stable although the segment did experience pressure on disposal unit profitability as the disposal mix of non-maintained units increased which typically de-fleet at lower levels of profitability.
The leasing fleet continues to be financed by asset-backed loans secured against the vehicles. The net book value of the fleet at 30 June 2017 was GBP72.2m against GBP65.9m of loans (30 June 2016: GBP66.6m against GBP60.7m of loans). Asset-backed leasing loans do not impact the Group's RCF capacity and are excluded from our RCF covenants.
Operating Review: Unallocated Segment
The unallocated segment consists principally of governance, administrative and asset management functions which are not directly attributable to the Group's retail or leasing segments. The unallocated segment recorded an underlying loss before tax of GBP4.9m during the Period compared to loss before tax of GBP3.9m in the same period last year. This expected increase was as a result of additional infrastructure and interest charges directly related to the recent Ridgeway acquisition.
Outlook
The Group delivered another record trading result during the Period, outperforming the UK new retail market. The acquired Ridgeway businesses have performed in line with expectations and the like-for-like business has also continued to grow.
The Board is cognisant of the economic and political uncertainty following the UK referendum on EU membership and industry forecasts for continuing declines in the UK new car market. The Board therefore remains cautious.
Overall, the Group remains well positioned and continues to seek to drive further growth in its profitability and return on capital, supported by a balanced portfolio of brands, attractive geographic locations and excellent brand partner relationships. The Board's previously upgraded outlook for the full year remains unchanged.
Daksh Gupta
Chief Executive
14 August 2017
Consolidated Statement of Comprehensive Income
For the period ended 30 June 2017
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
Note (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Revenue 3 1,187,445 826,401 1,899,405
Cost of sales (1,049,813) (728,253) (1,678,949)
------------ ------------ -------------
Gross profit 137,632 98,148 220,456
Operating expenses 4 (115,227) (83,697) (191,402)
------------
Group operating profit 22,405 14,451 29,054
------------ ------------ -------------
Finance costs 6 (3,854) (2,367) (6,903)
Profit before taxation 18,551 12,084 22,151
Analysed as:
Underlying profit before
tax 18,551 13,962 25,400
Non-underlying items 5 - (1,878) (3,249)
------------------------------- ----- ------------ ------------ -------------
Taxation 7 (4,119) (3,087) (4,397)
------------
Profit for the period 14,432 8,997 17,754
============ ============ =============
Attributable to:
Owners of the parent 14,432 8,997 17,762
Non-controlling interests - - (8)
------------
14,432 8,997 17,754
============ ============ =============
Total comprehensive income
for the period net of tax 14,432 8,997 17,754
============ ============ =============
Attributable to:
Owners of the parent 14,432 8,997 17,762
Non-controlling interests - - (8)
14,432 8,997 17,754
============ ============ =============
Earnings per share (expressed
in pence per share)
Basic earnings per share 8 18.6 11.6 23.0
------------ ------------ -------------
Diluted earnings per share 8 18.1 11.4 22.3
------------ ------------ -------------
Consolidated Statement of Changes in Equity
Note Share Share Retained Equity Non- Total
capital premium earnings attributable controlling equity
to owners interests
of
the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the half year
ended 30 June 2017
(unaudited)
Balance at 1 January
2017 49,531 19,672 76,435 145,638 21 145,659
======== ======== ========= ============= ============ =============
Total comprehensive
income - - 14,432 14,432 - 14,432
- - 14,432 14,432 - 14,432
-------- -------- --------- ------------- ------------ -------------
Transactions with
owners
Dividends paid 9 - - (2,864) (2,864) - (2,864)
Share based payments
charge - - 749 749 - 749
Balance at 30 June
2017 49,531 19,672 88,752 157,955 21 157,976
======== ======== ========= ============= ============ =============
For the half year
ended 30 June 2016
(unaudited)
Balance at 1 January
2016 49,431 19,672 60,781 129,884 29 129,913
====== ====== ======= ======= =======
Total comprehensive
income - - 8,997 8,997 - 8,997
- - 8,997 8,997 - 8,997
------ ------ ------- ------- -------
Transactions with
owners
Dividends paid 9 - - (1,858) (1,858) - (1,858)
Issue of share capital 10 100 - (100) - - -
Share based payments
charge - - 688 688 - 688
Other - - (314) (314) - (314)
Balance at 30 June
2016 49,531 19,672 68,194 137,397 29 137,426
====== ====== ======= ======= =======
For the year ended
31 December 2016
(audited)
Balance at 1 January
2016 49,431 19,672 60,781 129,884 29 129,913
====== ====== ======= ======= === =======
Total comprehensive
income - - 17,762 17,762 (8) 17,754
- - 17,762 17,762 (8) 17,754
------ ------ ------- ------- --- -------
Transactions with
owners
Dividends paid 9 - - (3,251) (3,251) - (3,251)
Issue of share capital 10 100 - (100) - - -
Share based payments
charge - - 1,313 1,313 - 1,313
Deferred tax on
share based payments - - (70) (70) - (70)
Balance at 31 December
2016 49,531 19,672 76,435 145,638 21 145,659
====== ====== ======= ======= === =======
Consolidated Statement of Financial Position
At 30 June 2017
30 June 30 June 31 December
2017 2016 2016
Note (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Goodwill and other intangible
assets 11 122,013 119,688 122,033
Property, plant and equipment 12 210,247 185,953 201,811
Investment property 2,590 1,920 2,590
Investments 10 10 10
Deferred tax asset 36 58 36
Total non-current assets 334,896 307,629 326,480
------------ ------------ ------------
Current assets
Inventories 372,850 351,512 380,016
Trade and other receivables 100,551 105,721 95,073
Cash and cash equivalents 8,327 28,490 83
Total current assets 481,728 485,723 475,172
------------ ------------ ------------
Total assets 816,624 793,352 801,652
============ ============ ============
Shareholders' equity
Share capital 10 49,531 49,531 49,531
Share premium 19,672 19,672 19,672
Retained earnings 88,752 68,194 76,435
------------ ------------ ------------
Equity attributable to
owners of the parent 157,955 137,397 145,638
Share of equity attributable
to non-controlling interests 21 29 21
Total equity 157,976 137,426 145,659
------------ ------------ ------------
Non-current liabilities
Loans and borrowings 40,428 41,784 41,364
Derivative financial - 1,224 -
instruments
Trade and other payables 8,382 7,355 7,462
Provisions 1,323 1,031 1,450
Deferred tax liabilities 20,803 18,653 20,803
Total non-current liabilities 70,936 70,047 71,079
------------ ------------ ------------
Current liabilities
Loans and borrowings 68,956 78,566 77,730
Trade and other payables 512,681 499,632 497,340
Provisions 2,119 1,020 5,242
Current tax liabilities 3,956 6,661 4,602
Total current liabilities 587,712 585,879 584,914
------------ ------------ ------------
Total liabilities 658,648 655,926 655,993
------------ ------------ ------------
Total equity and liabilities 816,624 793,352 801,652
============ ============ ============
Consolidated Cash Flow Statement
For the period ended 30 June 2017
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
Note (unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit before taxation 18,551 12,084 22,151
Adjustments for:
Depreciation and amortisation 11/12 14,172 11,065 24,233
Finance costs 6 3,854 2,367 6,903
Share based payments
charge 749 688 1,313
Profit on disposal
of property, plant
and equipment (67) (8) (38)
Profit on disposal
of dealerships - (285) (285)
Increase in fair value
of investment properties - - (670)
-------------
37,259 25,911 53,607
------------ ------------ -------------
Changes in working
capital:
(Increase)/decrease
in inventories 7,187 13,690 (14,814)
(Increase)/decrease
in trade and other
receivables (5,450) (11,233) (271)
Increase/(decrease)
in trade and other
payables 16,235 54,369 56,299
Increase/(decrease)
in provisions (3,250) 1,000 (2,940)
-------------
14,722 57,826 38,274
------------ ------------ -------------
Tax paid (4,765) (2,771) (4,669)
Interest paid (3,854) (2,377) (6,903)
-------------
Net cash inflow from
operating activities 43,362 78,589 80,309
------------ ------------ -------------
Cash flows from investing
activities
Purchase of property,
plant and equipment
and software and leased
vehicles (29,486) (30,454) (61,927)
Acquisition of subsidiary,
net of cash acquired 11 (77) (94,283) (94,495)
Net cash flow from
sale of businesses - 3,145 3,145
Proceeds from disposal
of property, plant
and equipment and
software and leased
vehicles 7,019 5,883 11,418
Cash inflows in respect - 104 -
of prior period acquisitions
-------------
Net cash outflow from
investing activities (22,544) (115,605) (141,859)
------------ ------------ -------------
Cash flows from financing
activities
Proceeds from borrowings 22,783 76,163 85,444
Repayment of borrowings (32,493) (32,929) (44,690)
Dividends paid (2,864) (1,858) (3,251)
Net cash (outflow)
/ inflow from financing
activities (12,574) 41,376 37,503
------------ ------------ -------------
Net increase / (decrease)
in cash and cash equivalents 8,244 4,360 (24,047)
Cash and cash equivalents
at 1 January 83 24,130 24,130
Cash and cash equivalents
at period end 8,327 28,490 83
============ ============ =============
Net Debt Reconciliation
For the period ended 30 June 2017
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Reconciliation of net
cash flow to movement
in (net debt)/cash
Increase / (reduction)
in net cash and cash
equivalents 8,244 4,360 (24,047)
Proceeds from drawdown
of RCF - (50,000) (35,000)
Proceeds of asset backed
borrowings (22,783) (26,163) (50,444)
Repayment of asset
backed borrowings 21,347 32,929 37,308
Repayment of other
borrowings 321 - 7,382
Repayment of bank overdraft 10,825 - -
Debt acquired with
acquisitions - (25,705) (25,705)
Derivatives acquired
with acquisitions - (1,258) (1,258)
Movement in net debt 17,954 (65,837) (91,764)
Opening net debt (119,011) (27,247) (27,247)
Net debt at period
end (101,057) (93,084) (119,011)
=========== =========== ============
Asset backed finance
within leasing segment (65,949) (60,690) (64,513)
Adjusted (net debt)
at period end (non
GAAP measure) (see
note 1) (35,108) (32,394) (54,498)
=========== =========== ============
Notes to the Financial Information
For the period ended 30 June 2017
1. General information
Marshall Motor Holdings plc (the "Company") is a company which is quoted on the Alternative Investment Market ("AIM"), and incorporated and domiciled in the UK. The address of the registered office is: Airport House, The Airport, Cambridge, CB5 8RY. The Company is the holding company of a number of subsidiaries including Marshall Motor Group Limited, Marshall Leasing Limited, Ridgeway Garages (Newbury) Limited and SG Smith Holdings Limited (collectively, the "Group"), whose activities consist principally of car and commercial vehicle sales, leasing, distribution, service and associated activities trading under the name Marshall Motor Holdings plc. The registered number of the Company is 2051461.
These consolidated interim financial statements for the six months ended 30 June 2017 and for the comparative six months ended 30 June 2016, are unaudited. They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2016. A copy of the full Group accounts that comply with IFRSs for the year ended 31 December 2016 can be found at www.mmhplc.com.
The information for the year ended 31 December 2016 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that period has been delivered to the Registrar of Companies. The Auditor's Report on those accounts was not qualified and did not contain an 'emphasis of matter' statement under section 498 of the Companies Act 2006.
The principal risks and uncertainties for the for the six months ended 30 June 2017 are consistent with those set out in the Marshall Motor Holdings plc Annual Report and Accounts 2016 dated 14 March 2017. These principal risks and uncertainties are expected to be consistent for the year ending 31 December 2017
These consolidated interim financial statements for the six months ended 30 June 2017 have been reviewed by the Company's auditor and a copy of their review report is set out at the end of these statements.
The financial statements are prepared in sterling which is the functional currency of the Group and rounded to the nearest GBP'000 except where otherwise indicated.
'Like-for-like' businesses are defined as those which traded under the Group's ownership throughout both the period under review and the whole of the corresponding comparative period.
Adjusted net debt is defined as debt finance, net of cash balances, excluding asset-backed finance relating to the leasing segment.
These consolidated interim financial statements were approved by the Board on 14 August 2017.
2. Accounting policies
The annual financial statements of Marshall Motor Holdings plc are prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union. The financial information included in this interim financial report has been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as adopted by the European Union. This interim financial report has been prepared under the historical cost convention as modified by the revaluation of investment properties.
The accounting policies and critical accounting judgements and estimates applied are consistent with those set out in the Marshall Motor Holdings plc Annual Report and Accounts 2016 dated 14 March 2017, and these accounting policies and critical accounting judgements and estimates are expected to apply for the year ending 31 December 2017. The Group holds financial instruments which include financial assets (trade and other receivables excluding prepayments, and cash and cash equivalents) and financial liabilities (borrowings and trade and other payables excluding non-financial liabilities). All such financial assets and liabilities are carried at amortised cost. For all financial assets and liabilities fair value equals carrying value except for long term borrowings.
Going concern
After making appropriate enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and for at least one year from the date that these interim financial statements are signed. For these reasons they continue to adopt the going concern basis in preparing the Group's interim financial statements.
Notes to the Financial Information (continued)
For the period ended 30 June 2017
3. Segmental reporting a) Operating Segments
Management has determined the operating segments based on the operating reports reviewed by the Chief Executive Officer that are used to assess both performance and strategic decisions. Management has identified that the Chief Executive Officer is the chief operating decision maker in accordance with the requirements of IFRS 8 'Operating Segments'.
The business is split into two main operating segments generating revenue and a third support segment. No significant judgements have been made in determining the reporting segments.
-- Retail - sales and servicing of motor vehicles and ancillary services. -- Leasing - leasing of vehicles to end consumers and fleet customers.
-- Unallocated - administrative and asset management functions in support of the wider business.
All segment revenue, profit/(loss), assets and liabilities are attributable to the principal activities of the Group being the provision of car and commercial vehicle sales, leasing, vehicle and other related services. All revenue is generated in the UK. Depreciation presented in the segmental note is restricted to assets other than assets held for contract rental, on the basis that depreciation of our leasing fleet is presented within cost of sales.
Retail Leasing Unallocated Total
(note
3b)
For the half year ended GBP'000 GBP'000 GBP'000 GBP'000
30 June 2017 (unaudited)
Revenue
Total revenue 1,167,795 19,508 142 1,187,445
--------- ----------- ---------
Total revenue from external
customers 1,167,795 19,508 142 1,187,445
========= ======= =========== =========
Depreciation and amortisation (5,007) (2) (14) (5,023)
========= ======= =========== =========
Segment operating profit/(loss) 24,151 2,608 (4,354) 22,405
Finance cost (3,067) (248) (539) (3,854)
Underlying profit before
tax 21,084 2,360 (4,893) 18,551
Non-underlying items - - - -
--------------------------------- --------- ------- ----------- ---------
Profit/(loss) before
taxation 21,084 2,360 (4,893) 18,551
========= ======= =========== =========
Total assets 637,106 94,956 84,562 816,624
========= ======= =========== =========
Total liabilities 418,935 75,117 164,596 658,648
========= ======= =========== =========
Additions in the period
(including acquisitions)
Property, plant, equipment
and software assets 12,324 17,194 - 29,518
========= ======= =========== =========
Notes to the Financial Information (continued)
For the period ended 30 June 2017
3. Segmental reporting (continued)
Retail
(note
3b) Leasing Unallocated Total
For the half year ended
30 June 2016 (unaudited) GBP'000 GBP'000 GBP'000 GBP'000
Revenue
Total revenue 806,056 20,161 184 826,401
-------- -------- ------------ --------
Total revenue from external
customers 806,056 20,161 184 826,401
======== ======== ============ ========
Depreciation and amortisation (2,343) (3) (11) (2,357)
======== ======== ============ ========
Segment operating profit/(loss) 16,813 3,198 (5,560) 14,451
Finance cost (1,560) (547) (260) (2,367)
Underlying profit before
tax 15,253 2,651 (3,942) 13,962
Non-underlying items - - (1,878) (1,878)
--------------------------------- -------- -------- ------------ --------
Profit/(loss) before
taxation 15,253 2,651 (5,820) 12,084
======== ======== ============ ========
Total assets 657,122 85,899 50,331 793,352
======== ======== ============ ========
Total liabilities 465,636 69,605 120,685 655,926
======== ======== ============ ========
Additions in the period
(including acquisitions)
Property, plant, equipment
and software assets 77,430 18,437 - 95,867
======== ======== ============ ========
Retail Leasing Unallocated Total
(note
3b)
For the year ended 31 GBP'000 GBP'000 GBP'000 GBP'000
December 2016 (audited)
Revenue
Total revenue 1,859,734 39,349 322 1,899,405
--------- ------- ----------- ---------
Total revenue from external
customers 1,859,734 39,349 322 1,899,405
========= ======= =========== =========
Depreciation and amortisation (6,862) (6) (22) (6,890)
========= ======= =========== =========
Segment operating profit/(loss) 32,637 5,653 (9,236) 29,054
Finance cost (5,319) (749) (835) (6,903)
Underlying profit before
tax 28,900 4,904 (8,404) 25,400
Non-underlying items (1,582) - (1,667) (3,249)
--------------------------------- --------- ------- ----------- ---------
Profit/(loss) before
taxation 27,318 4,904 (10,071) 22,151
========= ======= =========== =========
Total assets 620,365 91,512 89,775 801,652
========= ======= =========== =========
Total liabilities 417,622 73,454 164,917 655,993
========= ======= =========== =========
Additions in the year
(including acquisitions)
Property, plant, equipment
and software assets 94,344 35,537 - 129,881
========= ======= =========== =========
Notes to the Financial Information (continued)
For the period ended 30 June 2017
3. Segmental reporting (continued) b) Retail Segment Revenue
Retail revenue is derived from a number of service lines, principally being new vehicle sales and aftersales, as set out below.
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
New 611,221 431,026 983,314
Used 458,164 306,792 718,329
Aftersales & other 123,314 86,170 202,568
Internal (24,904) (17,932) (44,477)
Total 1,167,795 806,056 1,859,734
=========== =========== ============
4. Operating expenses
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Employee costs 58,975 42,064 101,170
Depreciation on property,
plant and equipment 4,769 2,228 5,838
Amortisation of intangibles 254 129 1,052
Profit on disposal of
business units - (285) (285)
Profit on disposal of
property plant and equipment (67) (8) (38)
Operating lease rentals
- property 5,748 4,825 10,324
Legal and professional
charges 605 2,664 3,152
Other expenses 44,943 32,080 70,189
115,227 83,697 191,402
=========== =========== ============
Acquisition costs of GBP2,163,000 in the year ended 31 December 2016 were incurred in connection with the acquisition of Ridgeway Garages (Newbury) Limited and are included within legal and professional charges.
Notes to the Financial Information (continued)
For the period ended 30 June 2017
5. Non-underlying items
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Acquisition costs - 2,163 2,163
Profit on disposal of
dealership - (285) (285)
Amortisation of acquired
order book - - 769
Gain on interest rate
swap termination - - (294)
Restructuring costs - - 1,566
Investment property
fair value movements - - (670)
- 1,878 3,249
=========== =========== ============
Non-underlying items in the year ended 31 December 2016 substantially arose as a result of the acquisition of Ridgeway Garages (Newbury) Limited. More information about these items are available in the financial statements for the year ended 31 December 2016 which are available at www.mmhplc.com.
6. Finance costs
Six months Six months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Interest income on
short term bank deposits (8) (38) (40)
Net interest payable
on asset backed finance 248 845 749
Stock financing charges
and other interest 2,470 1,560 3,958
Interest payable on
bank borrowings 1,144 - 2,236
Net finance costs 3,854 2,367 6,903
=========== =========== ============
7. Taxation
The reported tax rate for the period of 22.2% (six months ended 30 June 2016: 25.5%) is shown net of the tax impact of a property disposal in the period. The tax charge is lower than the prior period as the prior period included the effect of disallowable transaction costs.
Notes to the Financial Information (continued)
For the period ended 30 June 2017
8. Earnings per share
Basic earnings per share are calculated by dividing the earnings attributed to equity shareholders by the weighted average number of ordinary shares during the year and the diluted weighted average number of ordinary shares in issue in the year.
Underlying earnings per share are based on basic earnings per share adjusted for the impact of non-underlying items.
The diluted earnings per share are based on the weighted average number of shares after taking account of the dilutive impact of shares under option of 2,380,040 (2016: 2,394,603).
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Profit for the period 14,432 8,997 17,762
Non-controlling interests - - (8)
Basic earnings 14,432 8,997 17,754
=========== =========== ============
Weighted average number
of ordinary shares in issue
for the basic earnings per
share 77,392,862 77,260,355 77,326,970
Diluted weighted average
number of ordinary shares
in issue for diluted earnings
per share 79,772,902 79,226,243 79,500,548
Basic earnings per share
(in pence per share) 18.6 11.6 23.0
=========== =========== ============
Diluted earnings per share
(in pence per share) 18.1 11.4 22.3
=========== =========== ============
Impact of Non-underlying
items (in pence per share) 0.0 2.4 3.2
Underlying earnings per
share (in pence per share)
(non GAAP measure) 18.6 14.0 26.2
=========== =========== ============
9. Dividends
An interim dividend of 2.15p per share will be paid by 22 September 2017 to shareholders who are on the Company's register at close of business on 25 August 2017.
An interim dividend of GBP1,393,000 in respect of the year ended 31 December 2016 was paid in September 2016. This represented a payment of 1.80p per share in issue. A final dividend of GBP2,864,000 for the year ended 31 December 2016 was paid in May 2017. This represented a payment of 3.70p per share in issue.
10. Called up share capital
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Allotted, called up and
fully paid ordinary shares
of 64p each 49,531 49,531 49,531
=========== =========== ===========
On 27 May 2016 156,599 ordinary shares of 64p each were issued as part of the IPO Restricted share option scheme.
Notes to the Financial Information (continued)
For the period ended 30 June 2017
11. Goodwill and other intangible assets
Franchise Favourable Order
Goodwill agreements Software leases backlog Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the half
year ended 30
June 2017 (unaudited)
Cost
At 1 January
2017 49,076 72,115 1,079 172 769 123,211
Additions - - 51 - - 51
Additions on
acquisition - 22 - - - 22
Disposals - - - - (769) (769)
Transfers - - 161 - - 161
At 30 June 2017 49,076 72,137 1,291 172 - 122,676
--------- ----------- --------- ---------- -------- -------
Accumulated Amortisation
At 1 January
2017 - - 376 33 769 1,178
Charges for the
period - - 225 29 - 254
Disposals - - - - (769) (769)
At 30 June 2017 - - 601 62 - 663
--------- ----------- --------- ---------- -------- -------
Net book amount
At 30 June 2017 49,076 72,137 690 110 - 122,013
========= =========== ========= ========== ======== =======
Franchise Favourable Order
Goodwill agreements Software leases backlog Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the half
year ended 30
June 2016 (unaudited)
Cost
At 1 January
2016 37,791 - 623 - - 38,414
Additions - - 100 - - 100
Additions on
acquisition 23,197 58,563 - 172 769 82,701
Disposals (1,222) - (34) - - (1,256)
At 30 June 2016 59,766 58,563 689 172 769 119,959
-------- ----------- -------- ---------- -------- -------
Accumulated Amortisation
At 1 January
2016 - - 170 - - 170
Charges for the
period - - 129 - - 129
Disposals - - (28) - - (28)
At 30 June 2016 - - 271 - - 271
-------- ----------- -------- ---------- -------- -------
Net book amount
At 30 June 2016 59,766 58,563 418 172 769 119,688
======== =========== ======== ========== ======== =======
Notes to the Financial Information (continued)
For the period ended 30 June 2017
11. Goodwill and other intangible assets (continued)
Franchise Favourable Order
Goodwill agreements Software leases backlog Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the year ended
31 December 2016
(audited)
Cost
At 1 January 2016 26,782 13,552 623 - - 40,957
Additions - - 506 - - 506
Additions on acquisition 23,516 58,563 - 172 769 83,020
Disposals (1,222) - (50) - - (1,272)
At 31 December
2016 49,076 72,115 1,079 172 769 123,211
-------- ----------- -------- ---------- -------- -------
Accumulated Amortisation
At 1 January 2016 - - 170 - - 170
Charges for the
year - - 250 33 769 1,052
Disposals - - (44) - - (44)
At 31 December
2016 - - 376 33 769 1,178
-------- ----------- -------- ---------- -------- -------
Net book amount
At 31 December
2016 49,076 72,115 703 139 - 122,033
======== =========== ======== ========== ======== =======
On 16 November 2015 the Company acquired the entire share capital of SG Smith Holdings Limited ("SGS"). SGS itself is the holding company of 9 wholly owned subsidiary companies, SG Smith Automotive Limited, SG Smith (Motors) Limited, SG Smith (Motors) Beckenham Limited, SG Smith (Motors) Forest Hill Limited, SG Smith (Motors) Crown Point Limited, SG Smith (Motors) Sydenham Limited, SG Smith (Motors) Croydon Limited, SG Smith Trade Parts Limited and Prep-Point Limited.
Within the measurement period following acquisition of SGS and in accordance with IFRS 3, the purchase price allocation was finalised. As a result, GBP13,522,000 was reclassified from goodwill to franchise agreements and the corresponding recognition of a deferred tax liability increased the value of goodwill by GBP2,543,000. These adjustments were made at 31 December 2016 by restating the 1 January 2016 balances. As these adjustments were not finalised at 30 June 2016, the opening balances are stated as previously reported at 30 June 2016.
On 25 May 2016 the Company acquired the entire share capital of Ridgeway Garages (Newbury) Limited ("Ridgeway"). Ridgeway itself is the parent company of six wholly owned subsidiary companies, Pentagon Limited, Pentagon South West Limited, Ridgeway TPS Limited, Ridgeway Bavarian Limited, Wood in Hampshire Limited and Wood of Salisbury Limited.
In accordance with IFRS 3, the measurement period adjustment has been reflected in these financial statements as if the final purchase price allocation had been completed at the acquisition date. The acquisition accounting has been finalised in the period and the net assets at the date of acquisition are stated at their fair values as set out below. There has been no significant movement in the value of net assets acquired and goodwill between 31 December 2016 and 30 June 2017.
Notes to the Financial Information (continued)
For the period ended 30 June 2017
11. Goodwill and other intangible assets (continued)
Acquisition
balance
NBV at sheet
31 May Fair value at 30 June
2016 adjustment 2017
GBP'000 GBP'000 GBP'000
Goodwill 2,600 (2,600) -
Intangible assets - 59,504 59,504
Deferred tax on acquired
intangible assets - (10,728) (10,728)
Property, plant & equipment 65,414 (303) 65,111
Inventories 124,124 (724) 123,400
Trade and other receivables 51,627 (279) 51,348
Cash and cash equivalents 12,664 - 12,664
Trade and other payables (175,041) (3,103) (178,144)
Debt (25,705) - (25,705)
Provisions - (5,026) (5,026)
Deferred tax (954) (6,645) (7,599)
Derivatives (1,258) - (1,258)
Net assets acquired 53,471 30,096 83,567
Goodwill 23,380
Total cash consideration 106,947
===========
On 2 June 2017 the Group acquired the trade and assets of a Volvo dealership in Leeds.
The estimated net assets at the date of acquisition are stated at their provisional fair value as set out below.
NBV
at 2 June
2017
GBP'000
Intangible assets 22
Property, plant & equipment 32
Inventories 21
Trade and other receivables 28
Trade and other payables (26)
Net assets acquired 77
Total cash consideration 77
==========
Notes to the Financial Information (continued)
For the period ended 30 June 2017
12. Property, plant and equipment
Freehold Leasehold Plant Assets Assets Total
land improvements and held under
and equipment for construction
buildings contract
& long rental
leasehold
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the half
year ended
30 June 2017
(unaudited)
Cost
At 1 January
2017 108,487 15,015 35,126 101,944 7,022 267,594
Additions at
cost 6 410 2,260 17,194 9,565 29,435
Additions on
acquisition - - 32 - - 32
Disposals (1,361) (248) (3,292) (13,790) - (18,691)
Transfers (143) 402 113 - (721) (349)
At 30 June
2017 106,989 15,579 34,239 105,348 15,866 278,021
----------- -------------- ----------- ---------- -------------- --------
Accumulated
Depreciation
At 1 January
2017 8,996 3,383 21,146 32,258 - 65,783
Charges for
the period 851 830 3,088 9,149 - 13,918
Disposals (200) - (3,260) (8,279) - (11,739)
Transfers (357) 357 (188) - - (188)
At 30 June
2017 9,290 4,570 20,786 33,128 - 67,774
----------- -------------- ----------- ---------- -------------- --------
Net book amount
At 30 June
2017 97,699 11,009 13,453 72,220 15,866 210,247
=========== ============== =========== ========== ============== ========
Freehold
land Assets
and held
buildings Plant for Assets
& long Leasehold and contract under
leasehold improvements equipment rental construction Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the half
year ended
30 June 2016
(unaudited)
Cost
At 1 January
2016 37,381 12,372 27,177 96,890 - 173,820
Additions at
cost 973 243 2,068 18,437 8,632 30,353
Additions on
acquisition 53,731 2,753 5,031 - 3,899 65,414
Disposals (1,386) (177) (3,112) (16,896) - (21,571)
Transfers (2,123) (3,214) - - 5,337 -
At 30 June
2016 88,576 11,977 31,164 98,431 17,868 248,016
----------- -------------- ----------- ---------- -------------- --------
Accumulated
Depreciation
At 1 January
2016 9,121 2,540 20,445 34,429 - 66,535
Charges for
the period 200 384 1,644 8,708 - 10,936
Disposals (1,092) (156) (2,871) (11,289) - (15,408)
At 30 June
2016 8,229 2,768 19,218 31,848 - 62,063
----------- -------------- ----------- ---------- -------------- --------
Net book amount
At 30 June
2016 80,347 9,209 11,946 66,583 17,868 185,953
=========== ============== =========== ========== ============== ========
Notes to the Financial Information (continued)
For the period ended 30 June 2017
12. Property, plant and equipment (continued)
Freehold
land
and Assets
buildings Plant held Assets
& long Leasehold and for contract under
leasehold improvements equipment rental construction Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the year
ended 31 December
2016 (audited)
Cost
At 1 January
2016 37,381 12,372 27,177 96,890 - 173,820
Additions at
cost 1,370 236 3,545 35,537 23,633 64,321
Additions on
acquisition 53,276 2,872 5,007 - 3,899 65,054
Disposals (1,397) (278) (3,443) (30,483) - (35,601)
Transfers 17,857 (187) 2,840 - (20,510) -
At 31 December
2016 108,487 15,015 35,126 101,944 7,022 267,594
---------- ------------- ---------- ------------- ------------- --------
Accumulated
Depreciation
At 1 January
2016 9,121 2,540 20,445 34,429 - 66,535
Charges for
the year 934 1,146 3,758 17,343 - 23,181
Disposals (1,103) (259) (3,057) (19,514) - (23,933)
Transfers 44 (44) - - - -
At 31 December
2016 8,996 3,383 21,146 32,258 - 65,783
---------- ------------- ---------- ------------- ------------- --------
Net book amount
At 31 December
2016 99,491 11,632 13,980 69,686 7,022 201,811
========== ============= ========== ============= ============= ========
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the 6 months ended 30 June 2017 which comprises the consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated statement of financial position, consolidated cash flow statement and the related notes 1 to 12. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with International Accounting Standards 34, "Interim Financial Reporting," as adopted by the European Union.
As disclosed in note 2, the annual financial statements of the company are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standards 34, "Interim Financial Reporting, " as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion 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" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and 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.
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 6 months ended 30 June 2017 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union.
Ernst & Young LLP
Cambridge
14 August 2017
This information is provided by RNS
The company news service from the London Stock Exchange
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IR DZLFFDVFLBBL
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August 15, 2017 02:00 ET (06:00 GMT)
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