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Share Name Share Symbol Market Type Share ISIN Share Description
Ms International Plc LSE:MSI London Ordinary Share GB0005957005 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  37.50 6.7% 597.50 585.00 610.00 600.00 562.50 562.50 12,546 11:57:52
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Engineering 74.5 6.0 30.9 19.3 97

MS International PLC Annual Financial Report

28/06/2022 7:26am

UK Regulatory (RNS & others)


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TIDMMSI

RNS Number : 3728Q

MS International PLC

28 June 2022

Chairman's statement

Results and Review

It is a pleasure to report that, for the year ended 30(th) April 2022, the Company attained considerable progress across the Group's divisions, resulting in a significantly improved pre-tax profit of GBP5.97m (2021-GBP1.59m) on increased revenue of GBP74.52m (2021-GBP61.54m).

Basic earnings per share amounted to 30.9p, (2021- 7.2p). The balance sheet was further strengthened with cash and cash equivalents rising to GBP18.1m (2021 - GBP17.4m).

The Group has made a strong recovery post the many constraints imposed by Covid. This, I believe, demonstrates the tangible benefits of operating an optimistic, long-term investment and support strategy, that we practice daily, to support and encourage the respective management teams that directly oversee the operations of our diverse businesses.

During the period under review, two common themes continued to feature across all divisions, namely the prolonged negative effects of the global pandemic and extended periods of limited availability of materials and components. Such issues required close and constant monitoring by our management teams to ensure sustained high-quality sales output. A job well done by everyone.

'Defence'

This was a remarkable year of great achievements for this division, highlighted by the phased manufacture and delivery of the first 7 of 8 No MSI-DS30mm naval weapon systems to the United States Navy. This was achieved in a timely manner to facilitate our customer's comprehensive test and certification programme of the MSI product. The anticipated successful prototype testing of the MSI weapon system, is the precursor to a highly prized sole source 'Follow-on Production Contract'. Presently, all trials are going to plan and positive progress is being made.

In the UK, our new 'state of the art' Norwich manufacturing facility is in the final phase of completion, whilst, in the United States of America, we are in the early stages of our programme to establish an appropriate product support resource for our weapon systems, along-side our contemporary forging facilities, in South Carolina. These projects are essential to support our perceived growing defence opportunities in the United States.

We also firmly believe that our 'state of the art' weapon system will significantly enhance the capability and protection of the Royal Navy, once a forward-looking decision is made to upgrade their existing historic, small calibre weapons systems. We stand ready, with our modern manufacturing facilities and proven international capabilities, to work with the UK MOD to meet such requirements.

'Forgings'

This division also performed extremely well, successfully navigating the disrupted, and constantly changing, international business environment. There is little doubt that having established contemporary automated 'local' production facilities - in the UK and both North and South America, - successfully enabled MSI to welcome and secure many customers that had previously procured product from China.

'Petrol Station Superstructures' - mobility hubs

Operations in both the UK and the Poland performed resiliently against a prevailing uncertain backdrop. Despite the challenges, the division continued to make great progress, pleasingly exceeding management's revenue forecasts. Many forecourt operators have continued to develop their sites to incorporate a substantial grocery store and catering facility and Global-MSI designed, manufactured and erected many such structures during the period.

As with all construction orientated businesses, the negative impact of the lack of readily available materials and their associated fluctuating costs, became a major factor in terms of managing day to day operations. Such disruptive circumstances necessitated some contracts to be re-negotiated to the mutual satisfaction of all parties.

'Corporate Branding'

This division traded at similar levels to the prior year, as commercial activity remained seriously constrained across mainland Europe's national borders. We took action to restructure the division's operations in both The Netherlands and Germany and much has been achieved as a result, leaving it better geared to the current needs of the market. Pleasingly, the UK based business has continued to prosper, gaining market share and expanding operational capabilities and facilities.

Outlook

'Defence'

Foremost, we look forward with confidence to a favourable report on our 30mm naval weapon system, presently on approval test by the US Navy.

Furthermore, recent events have served to focus attention on the need for appropriate national security to combat potential lethal land-based threats. We believe that, as our additional 'in-house' product developments come to fruition, there will be numerous opportunities across international markets to supply our, tested and proven, land-based defence equipment.

'Forgings'

Demand for our high quality, forged products is increasing, as customers seek assured and dependable security of supply. To that end, we will continue to invest in further automating our manufacturing facilities in the UK, the United States and South America.

'Petrol Station Superstructures'

The markets we serve are vigorously embracing change, not only in the development of providing and dispensing alternative fuel types but also in broadening their provision of services to include groceries and catering facilities. The development expertise and scale of the buildings required to dispense such services are most appropriate to the designs, manufacturing and erection skills of Global-MSI. We expect further growth opportunities for both our UK and Polish operations.

'Corporate Branding'

We have completed restructuring in The Netherlands and Germany and expanded our UK operations. So, now that inter-country business activity across mainland Europe has been restored, we are cautiously optimistic that we will achieve a more profitable division this year.

Pleasingly, we have already received instructions from a number of major customers to speedily recommence projects, that they had put 'on hold', owing to the scale and duration of the pandemic.

Summary

We believe that we have placed each of our businesses in a strong and exciting position within the markets which we serve. Close monitoring of performance and further support in the development of new products and services will, no doubt, bring further rewards.

All matters considered the Board recommends the payment of a final dividend of 7.5p per share (2021 - 6.5p) making a total for the year of 9.25p (2021 - 8.25p).

The final dividend is expected to be paid on the 12th August 2022, to those shareholders on the register at the close of business on the 15th July 2022.

Michael Bell

27(th) June 2021

 
  MS INTERNATIONAL plc 
  Michael Bell                          Tel: 01302 322133 
 
  Shore Capital (Nominated Adviser 
   and Broker) 
  Patrick Castle                       Tel: 020 7408 4090 
  Daniel Bush 
 

Copies of this announcement are available from the Company's registered office at MS INTE RNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England. The Notice of AGM will be posted to shareholders on 5(th) July, 2022. The full Annual Report and Accounts will be posted to shareholders in the week commencing 11(th) July, 2022. They will be made available on the Company's website at www.msiplc.com and will be delivered to the Registrar of Companies after it has been laid before the Company's members at the Annual General Meeting to be held on 28(th) July, 2022 at The Holiday Inn, Warmsworth, Doncaster.

 
 Consolidated income statement 
 For the year ended 30th April, 2022 
                                                                                               2022       2021 
 Continuing operations                                                                        Total      Total 
                                                                                            GBP'000    GBP'000 
 
 Revenue                                                                                     74,524     61,539 
 Cost of sales                                                                             (54,121)   (44,218) 
----------------------------------------------------------------------------------------  ---------  --------- 
 Gross profit                                                                                20,403     17,321 
 
 Distribution costs                                                                         (3,304)    (2,581) 
 Administrative expenses                                                                   (12,097)   (12,954) 
 O ther operating income                                                                      1,185          - 
------------------------------------------------------------------------------------- 
                                                                                           (14,216)   (15,535) 
                                                                                          ---------  --------- 
 Group operating profit                                                                       6,187      1,786 
 
 Share of net profit of joint venture                                                             -         28 
                                                                                                     --------- 
 Interest received                                                                                1         10 
 Interest paid                                                                                 (95)       (92) 
 Other finance costs - pensions                                                               (126)      (140) 
                                                                                          --------- 
                                                                                              (220)      (222) 
                                                                                          ---------  --------- 
 Profit before taxation                                                                       5,967      1,592 
 Taxation                                                                                   (1,035)      (415) 
----------------------------------------------------------------------------------------  ---------  --------- 
 Profit for the year attributable to equity holders of the parent                             4,932      1,177 
----------------------------------------------------------------------------------------  ---------  --------- 
 
 Basic earnings per share                                                                     30.9p       7.2p 
 Diluted earnings per share                                                                   29.6p       7.0p 
 
 
 Consolidated statement of comprehensive income 
 For the year ended 30th April, 2022 
 
                                                                                               2022       2021 
                                                                                              Total      Total 
                                                                                            GBP'000    GBP'000 
 
 Profit for the year attributable to equity holders of the parent                             4,932      1,177 
 Exchange differences on retranslation of foreign operations                                  (603)       (38) 
----------------------------------------------------------------------------------------  ---------  --------- 
 Net other comprehensive loss to be reclassified to profit or loss in subsequent years        (603)       (38) 
---------------------------------------------------------------------------------------   ---------  --------- 
 Remeasurement gains on defined benefit pension scheme                                        1,601      1,213 
 Deferred tax on remeasurement on defined benefit scheme                                      (145)      (230) 
 Revaluation of land and buildings                                                            3,868          - 
 Deferred tax on revaluation surplus on land and buildings                                    (798)          - 
 Net other comprehensive income not being reclassified to profit or loss in subsequent 
  years                                                                                       4,526        983 
---------------------------------------------------------------------------------------   ---------  --------- 
 
 Total comprehensive income for the year attributable to equity holders of the parent         8,855      2,122 
---------------------------------------------------------------------------------------   ---------  --------- 
 
 
Consolidated and company statement of changes in equity 
For the year ended 30th April, 2022 
                    Share     Capital     Other  Revaluation  Special     Currency  Treasury  Retained          Total 
                  capital  redemption  reserves      reserve  reserve  translation    shares  earnings  shareholders' 
                              reserve                                      reserve                              funds 
                  GBP'000     GBP'000   GBP'000      GBP'000  GBP'000      GBP'000   GBP'000   GBP'000        GBP'000 
 
(a) Group 
At 30th April, 
 2020               1,840         901     2,815        6,055    1,629          224   (3,059)    19,723         30,128 
Profit for the 
 year                   -           -         -            -        -            -         -     1,177          1,177 
Other 
 comprehensive 
 (loss)/income          -           -         -            -        -         (38)         -       983            945 
                  -------              --------                                               --------  ------------- 
Total 
 comprehensive 
 (loss)/income          -           -         -            -        -         (38)         -     2,160          2,122 
Dividends paid          -           -         -            -        -            -         -     (578)          (578) 
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 
 year                   -           -         -            -        -            -         -     4,932          4,932 
Other 
 comprehensive 
 income/(loss)          -           -         -        3,868        -        (603)         -       658          3,923 
                  -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
Total 
 comprehensive 
 income/(loss)          -           -         -        3,868        -        (603)         -     5,590          8,855 
Dividends paid          -           -         -            -        -            -         -   (1,316)        (1,316) 
--------------- 
At 30th April, 
 2022               1,784         957     2,815        9,923    1,629        (417)   (2,789)    24,673         38,575 
---------------   -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
(b) Company 
At 30th April, 
 2020               1,840         901     7,620            -    1,629            -   (3,059)    15,618         24,549 
Profit for the 
 year                   -           -         -            -        -            -         -     1,548          1,548 
Other 
 comprehensive 
 income                 -           -         -            -        -            -         -       899            899 
                  -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
Total 
 comprehensive 
 income                 -           -         -            -        -            -         -     2,447          2,447 
Dividends paid 
 (note 10)              -           -         -            -        -            -         -     (578)          (578) 
Purchase of own 
 shares (note 
 22)                    -           -         -            -        -            -     (636)         -          (636) 
Cancellation of 
 shares              (56)          56         -            -        -            -       906     (906)              - 
---------------   -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
At 30th April, 
 2021               1,784         957     7,620            -    1,629            -   (2,789)    16,581         25,782 
Profit for the 
 year                   -           -         -            -        -            -         -     3,362          3,362 
Other 
 comprehensive 
 income                 -           -         -            -        -            -         -     1,232          1,232 
                  -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
Total 
 comprehensive 
 income                 -           -         -            -        -            -         -     4,594          4,594 
Dividends paid          -           -         -            -        -            -         -   (1,316)        (1,316) 
--------------- 
At 30th April, 
 2022               1,784         957     7,620            -    1,629            -   (2,789)    19,859         29,060 
---------------   -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
 
 
 Consolidated and company statements of financial position 
 At 30th April, 2022 
                                             Group              Company 
                                          2022      2021      2022      2021 
                                       GBP'000   GBP'000   GBP'000   GBP'000 
 ASSETS 
 Non-current assets 
 Property, plant and equipment          24,537    19,113     1,017       935 
 Right-of-use assets                     1,479       530     5,029     5,486 
 Intangible assets                       3,002     3,558         -         - 
 Investments in subsidiaries                 -         -    18,126    17,313 
 Investment in joint venture                34        36         -         - 
 Deferred income tax asset               1,435     1,606     1,374     1,600 
------------------------------------  --------  --------  -------- 
                                        30,487    24,843    25,546    25,334 
                                      --------  --------  --------  -------- 
 Current assets 
 Inventories                            16,327    12,423     2,592     1,498 
 Trade and other receivables            11,396     9,369    15,394    16,135 
 Contract assets                         1,773     1,998         -         - 
 Income tax receivable                       6       194         -       141 
 Prepayments                             1,352     2,010       218       543 
 Cash and cash equivalents              18,092    17,390     3,258       943 
 Restricted cash held in Escrow          1,158     6,165         -         - 
------------------------------------  --------  --------  -------- 
                                        50,104    49,549    21,462    19,260 
                                      --------  --------  --------  -------- 
 
 TOTAL ASSETS                           80,591    74,392    47,008    44,594 
------------------------------------  --------  --------  --------  -------- 
 
 EQUITY AND LIABILITIES 
 Equity 
 Share capital                           1,784     1,784     1,784     1,784 
 Capital redemption reserve                957       957       957       957 
 Other reserves                          2,815     2,815     7,620     7,620 
 Revaluation reserve                     9,923     6,055         -         - 
 Special reserve                         1,629     1,629     1,629     1,629 
 Currency translation reserve            (417)       186         -         - 
 Treasury shares                       (2,789)   (2,789)   (2,789)   (2,789) 
 Retained earnings                      24,673    20,399    19,859    16,581 
------------------------------------  --------  --------  --------  -------- 
 TOTAL EQUITY SHAREHOLDERS' FUNDS       38,575    31,036    29,060    25,782 
------------------------------------  --------  --------  --------  -------- 
 Non-current liabilities 
 Defined benefit pension liability       4,720     7,095     4,720     7,095 
 Deferred income tax liability           2,578     1,553         -         - 
 Lease liabilities                       1,158       380     4,807     5,214 
------------------------------------  --------  --------  --------  -------- 
                                         8,456     9,028     9,527    12,309 
                                      --------  --------  --------  -------- 
 Current liabilities 
 Trade and other payables               14,176    12,410     7,068     5,234 
 Contract liabilities                   18,329    21,192       622       874 
 Income tax payable                        702       561       324         - 
 Lease liabilities                         353       165       407       395 
------------------------------------  --------  --------  --------  -------- 
                                        33,560    34,328     8,421     6,503 
                                      --------  --------  --------  -------- 
 
 TOTAL EQUITY AND LIABILITIES           80,591    74,392    47,008    44,594 
------------------------------------  --------  --------  --------  -------- 
 
 
 Consolidated and company cash flow statements 
 For the year ended 30th April, 2022 
                                                                         Group                  Company 
                                                                      2022       2021        2022            2021 
                                                                   GBP'000    GBP'000     GBP'000         GBP'000 
 
 Profit before taxation                                              5,967      1,592       2,509              92 
 Adjustments to reconcile profit before taxation to cash 
 generated from operating activities: 
 Past service pension costs                                              -        205           -             205 
 Depreciation charge of owned assets and right-of-use assets         1,746      1,666         931             895 
 Amortisation charge                                                   227        237           -               - 
 Impairment of goodwill                                                349        348           -               - 
 Write off of acquired goodwill                                          -          8           -               - 
 Profit on sale of fixed assets                                      (169)       (74)       (163)            (61) 
 Share of net profit of joint venture                                    -       (28)           -               - 
 Termination of lease                                                    -        (7)           -               - 
 Finance costs                                                         220        222         292             366 
 Foreign exchange (losses)/gains                                     (142)        516           -               - 
 (Increase)/decrease in inventories                                (3,657)      3,377     (1,094)              44 
 (Increase)/decrease in receivables                                (1,541)    (6,834)          19              37 
 Decrease/(increase) in prepayments                                    611      (237)         325           (246) 
 Increase in payables                                                1,340      1,162       1,518           1,296 
 (Decrease)/increase in progress payments                          (3,660)      7,824       (252)           (163) 
 Pension fund payments                                               (900)      (600)       (900)           (600) 
----------------------------------------------------------------  --------   --------   ---------      ---------- 
 Cash generated from operating activities                              391      9,377       3,185           1,865 
 Net interest paid                                                    (43)       (52)         (1)            (49) 
 Taxation (paid)/received                                            (447)        460         151               - 
----------------------------------------------------------------  --------   --------   ---------      ---------- 
 Net cash (outflow)/inflow from operating activities                  (99)      9,785       3,335           1,816 
----------------------------------------------------------------  --------   --------   ---------      ---------- 
 
 Investing activities 
 Payments for acquisitions, net of cash acquired                         -       (89)           -               - 
 Dividends received from subsidiaries                                    -          -       1,249           1,498 
 Purchase of property, plant and equipment                         (2,703)      (781)       (578)           (268) 
 Purchase of intangible assets                                        (54)          -           -               - 
 Proceeds on disposal of property, plant and equipment                 227         97         185              62 
 Decrease/(increase) in cash held in the Escrow account maturing 
  in more than 90 days                                               5,007    (6,165)           -               - 
 Net cash inflow/(outflow) from investing activities                 2,477    (6,938)         856           1,292 
----------------------------------------------------------------  --------   --------   ---------      ---------- 
 Financing activities 
 Purchase of own shares                                                  -      (636)           -           (636) 
 Lease payments                                                      (405)      (327)       (560)           (560) 
 Dividends paid                                                    (1,316)      (578)     (1,316)           (578) 
 Net cash outflow from financing activities                        (1,721)    (1,541)     (1,876)         (1,774) 
----------------------------------------------------------------  --------   --------   ---------      ---------- 
 Increase in cash and cash equivalents                                 657      1,306       2,315           1,334 
 Opening cash and cash equivalents/(bank overdraft)                 17,390     16,125         943           (391) 
 Exchange differences on cash and cash equivalents                      45       (41)           -               - 
 Closing cash and cash equivalents                                  18,092     17,390       3,258             943 
----------------------------------------------------------------  --------   --------   ---------      ---------- 
 
 

The financial information set out above does not constitute the Company's statutory accounts for the periods ended 30(th) April, 2022 or 30th April, 2021 but is derived from those accounts. Statutory accounts for 2021 have been delivered to the Registrar of Companies and those for 2022 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 
 1. Segment information 
 
 The following table presents revenue and profit and certain assets and liability information 
  regarding the Group's divisions for the years ended 30th April, 2022 and 30th April, 2021. 
  The reporting format is determined by the differences in manufacture and services provided 
  by the Group. The 'Defence' division is engaged in the design, manufacture, and service of 
  defence equipment. The 'Forgings' division is engaged in the manufacture of forgings. The 
  'Petrol Station Superstructures' division is engaged in the design, manufacture, construction, 
  branding, maintenance, and restyling of petrol station superstructures. The 'Corporate Branding' 
  division is engaged in the design, manufacture, installation, and service of corporate brandings. 
 
 Management monitors the operating results of its business units separately for the purpose 
  of making decisions about resource allocation and performance assessment. Group financing 
  (including finance costs and finance revenue) and income taxes are managed on a group basis 
  and are therefore not allocated to operating segments. 
 
 
                   'Defence'         'Forgings'      'Petrol Station       'Corporate          Total 
                                                     Superstructures'      Branding' 
                   2022     2021     2022     2021       2022     2021     2022     2021     2022     2021 
                GBP'000  GBP'000  GBP'000  GBP'000    GBP'000  GBP'000  GBP'000  GBP'000  GBP'000  GBP'000 
Segmental 
revenue 
Total revenue    30,219   27,078   16,482    9,970     15,143   11,774   13,009   12,972   74,853   61,794 
Revenue from 
 other 
 segments             -        -        -        -      (245)    (145)     (84)    (110)    (329)    (255) 
--------------  -------  -------  -------  -------  ---------  -------  -------  -------  -------  ------- 
Revenue from 
 external 
 customers       30,219   27,078   16,482    9,970     14,898   11,629   12,925   12,862   74,524   61,539 
--------------  -------  -------  -------  -------  ---------  -------  -------  -------  -------  ------- 
 
Segment 
result 
Operating 
 profit           4,123    2,570    2,245      425      1,074      448  (1,255)  (1,657)    6,187    1,786 
Share of net 
 profit of 
 joint venture                                                                                  -       28 
Net finance 
 costs                                                                                      (220)    (222) 
--------------                                                                            -------  ------- 
Profit before 
 taxation                                                                                   5,967    1,592 
Taxation                                                                                  (1,035)    (415) 
--------------                                                                            -------  ------- 
Profit for the 
 year                                                                                       4,932    1,177 
--------------                                                                            -------  ------- 
 
Segmental 
assets 
Assets 
 attributable 
 to segments     33,393   35,414    7,883    4,066      9,380    8,492    8,050    8,468   58,706   56,440 
Unallocated 
 assets*                                                                                   21,885   17,952 
Total assets                                                                               80,591   74,392 
--------------                                                                            -------  ------- 
 
Segmental 
liabilities 
Liabilities 
 attributable 
 to segments     23,643   24,795    3,547    2,445      3,109    2,970    3,591    3,510   33,890   33,720 
Unallocated 
 liabilities *                                                                              8,126    9,636 
--------------                                                                            -------  ------- 
Total 
 liabilities                                                                               42,016   43,356 
--------------                                                                            -------  ------- 
 
Other 
segmental 
information 
Capital 
 expenditure      1,933      440      389       24        195      131      186      186    2,703      781 
Depreciation        210      176      561      545        714      377      261      263    1,746    1,361 
Amortisation         10        -        -        -         43       55      174      182      227      237 
Impairment            -        -        -        -          -        -      349      348      349      348 
 
 
 * Unallocated assets include certain fixed assets (including all UK properties), current assets 
  and deferred income tax assets. Unallocated liabilities include the defined pension benefit 
  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. 
 
 Geographical analysis 
 
 The following table presents revenue and expenditure and certain assets and liabilities information 
  by geographical segment for the years ended 30th April, 2022 and 30th April, 2021. The Group's 
  geographical segments are based on the location of the Group's assets. 
                               United Kingdom            Europe                 USA            South America            Total 
                                 2022       2021     2022         2021      2022      2021      2022       2021       2022      2021 
                              GBP'000    GBP'000  GBP'000      GBP'000   GBP'000   GBP'000   GBP'000    GBP'000    GBP'000   GBP'000 
 
External revenue by 
 origin                        41,665     41,191   11,599       12,987    18,917     5,934     2,343      1,427     74,524    61,539 
Non-current assets             20,160     17,373    4,327        3,706     5,913     3,751        87         13     30,487    24,843 
Current assets                 37,235     39,457    6,147        6,899     6,024     2,306       698        887     50,104    49,549 
Liabilities                    28,380     32,516    4,112        3,729     9,223     7,081       301         30     42,016    43,356 
Capital expenditure             2,377        644      133          137       193         -         -          -      2,703       781 
 
 
 
  Revenue disaggregated by destination is shown as follows: 
                                                                                                    2022                2021 
                                                                                             GBP'000      %        GBP'000     % 
 
United Kingdom                                                                                31,287        42%     22,259       36% 
Europe                                                                                        17,103        23%     26,574       43% 
USA                                                                                           19,406        26%      5,934       10% 
South America                                                                                  2,421         3%      1,427        2% 
Rest of World                                                                                  4,307         6%      5,345        9% 
 
Total revenue                                                                                 74,524       100%     61,539      100% 
------------------------    ---------  ---------  -------      -------   -------   -------   -------  ---------  ---------  -------- 
 
 

The Group's largest customer, which is reported in the 'Defence' division, contributed 14.2% to the Group's revenue (2021: 14.9% in the 'Defence' division from a different customer). Only one other customer, also in the 'Defence' division, contributed more than 10% to the Group's revenue with a contribution of 11.4% (2021: 11.3% in the 'Defence' division).

 
 2. Other operating income 
                                                                                                2022      2021 
                                                                                             GBP'000   GBP'000 
 
 Settlement of contractual dispute                                                             1,185         - 
-------------------------------------------------------------------   ---------  ---------  --------  -------- 
                                                                                               1,185         - 
-------------------------------------------------------------------   ---------  ---------  --------  -------- 
 
 During the year, the Group settled a protracted contractual dispute, the terms of which are 
  confidential. The amount received has been recognised in other income. The Group has incurred 
  GBP0.6m of legal costs in the current year in relation to this matter. These costs are included 
  in administrative expenses. 
 
 2. Employee information 
 
 The average number of employees, including executive directors, 
 during the year was as follows: 
                                                                              Group               Company 
                                                                           2022       2021      2022      2021 
                                                                         Number     Number    Number    Number 
 
      Production                                                            252        243        74        73 
      Technical                                                              71         72        23        24 
      Distribution                                                           26         32         2         5 
      Administration                                                         98         96        39        32 
--------------------------------------------------------------------  ---------  ---------  --------  -------- 
                                                                            447        443       138       134 
                                                                      ---------  ---------  --------  -------- 
 
 (a) Staff costs 
 
      Including executive directors, employment costs were as 
      follows: 
                                                                                Group             Company 
                                                                           2022       2021      2022      2021 
                                                                        GBP'000    GBP'000   GBP'000   GBP'000 
 
      Wages and salaries                                                 18,942     17,420     7,139     6,123 
      Covid-19 job retention scheme income                              (1,636)    (1,690)         -     (313) 
      Social security costs                                               3,233      3,263       722       647 
      Pension costs                                                         570        557       352       344 
      Share options expense                                                  29         29        29        29 
--------------------------------------------------------------------  ---------  ---------  --------  -------- 
                                                                         21,138     19,579     8,242     6,830 
                                                                      ---------  ---------  --------  -------- 
 
 The Covid-19 job retention scheme income has been received in the following countries: 
                                                                                                2022      2021 
                                                                                             GBP'000   GBP'000 
 
      UK                                                                                           -       313 
      The Netherlands                                                                          1,310     1,113 
      USA                                                                                        251       254 
      Poland                                                                                      75        10 
                                                                      ---------  --------- 
                                                                                               1,636     1,690 
 -------------------------------------------------------------------  ---------  ---------  --------  -------- 
 
 
 (b) Directors' emoluments 
                                                                                                2022     2021` 
                                                                                             GBP'000   GBP'000 
 
      Aggregate directors' emoluments                                                          1,810     1,570 
      Pension contributions                                                                       52        42 
--------------------------------------------------------------------  ---------  ---------  --------  -------- 
                                                                                               1,862     1,612 
 -------------------------------------------------------------------  ---------  ---------  --------  -------- 
 
 
 3. (a) Taxation 
 
 The charge for taxation comprises: 
                                                                           2022      2021 
                                                                        GBP'000   GBP'000 
 Current tax 
 United Kingdom corporation tax                                             667       410 
 Adjustments in respect of previous years                                  (10)        25 
 Foreign corporation tax                                                    120        30 
---------------------------------------------------------------------  --------  -------- 
 Group current tax expense                                                  777       465 
---------------------------------------------------------------------  --------  -------- 
 
 Deferred tax 
 Origination and reversal of temporary differences                          261      (40) 
 Adjustments in respect of previous years                                   (5)      (10) 
 Adjustments in respect of difference in applicable tax rate                  2         - 
--------------------------------------------------------------------   --------  -------- 
 Group deferred tax expense/(credit)                                        258      (50) 
---------------------------------------------------------------------  --------  -------- 
 Total tax expense on profit                                              1,035       415 
---------------------------------------------------------------------  --------  -------- 
 
 
 Tax relating to items charged to other comprehensive income: 
                                                                           2022      2021 
                                                                        GBP'000   GBP'000 
 Deferred tax charged through other comprehensive income 
 Deferred tax on measurement gains on pension scheme current year         (145)     (230) 
 Deferred tax on revaluation surplus on land and buildings                (798)         - 
 Deferred tax in the Consolidated statement of comprehensive income       (943)     (230) 
---------------------------------------------------------------------  --------  -------- 
 
 
 (b) Factors affecting the tax charge for the year 
 
 
 The tax charge assessed for the year is lower than (2021: higher than) the standard rate of 
  corporation tax in the UK of 19% (2021 - 19%). The differences are explained below: 
 
                                                                                      2022          2021 
                                                                                   GBP'000       GBP'000 
 
 Profit before tax                                                                   5,967         1,592 
--------------------------------------------------------------------------        --------    ---------- 
 Profit multiplied by standard rate of corporation tax of 19% (2021 - 19%)           1,134           302 
 
 Effects of: 
 Expenses not deductible for tax purposes                                            (247)         (164) 
 Adjustments in respect of overseas tax rates                                          161           262 
 Current tax adjustment in respect of previous years                                  (10)            25 
 Deferred tax adjustment in respect of previous years                                  (5)          (10) 
 Deferred tax adjustment in respect of different applicable rates                        2             - 
--------------------------------------------------------------------------        --------    ---------- 
 Total taxation expense for the year                                                 1,035           415 
--------------------------------------------------------------------------        --------    ---------- 
 
 (c) Factors affecting future tax charge 
 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 30th April, 2022, deferred income tax has been 
  provided at 25% or a blended rate depending upon when the underlying temporary timing differences 
  are expected to unwind. 
 
 Deferred tax in relation to intangibles recognised on the acquisition of 'MSI-Sign Group B.V.' 
  has been provided at 25.8%, being the main corporation tax rate in The Netherlands. 
 
 
 
 4. Earnings per share 
 
 The calculation of basic earnings per share of 30.9p (2021 - 7.2p) is based 
  on the profit for the year attributable to equity holders of the parent of 
  GBP4,932,000 (2021 - GBP1,177,000) and on a weighted average number of ordinary 
  shares in issue of 15,949,691 (2021 - 16,342,816). At 30th April, 2022 there 
  were 1,055,000 (2021 - 380,000) dilutive shares on option with a weighted 
  average effect of 716,575 (2021 - 391,667) giving a diluted earnings per share 
  of 29.6p (2021 - 7.0p). 
 
                                                                      2022          2021 
 
 Number of ordinary shares in issue at start of the year        17,841,073    18,396,073 
 Cancellation of ordinary shares during the year                         -     (555,000) 
------------------------------------------------------------  ------------  ------------ 
 Number of ordinary shares in issue at the end of the year      17,841,073    17,841,073 
------------------------------------------------------------  ------------  ------------ 
 
 Weighted average number of shares in issue                     17,841,073    18,234,198 
 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    16,342,816 
 Weighted average number of the 1,055,000 (2021 - 380,000) 
  dilutive shares                                                  716,575       391,667 
 Weighted average diluted shares                                16,666,266    16,734,483 
------------------------------------------------------------  ------------  ------------ 
 
 Profit for the year attributable to equity holders to 
  the parent in GBP                                              4,932,000     1,177,000 
 Basic earnings per share                                            30.9p          7.2p 
 Diluted earnings per share                                          29.6p          7.0p 
 
 
 
 5. Dividends paid and proposed                                       2022          2021 
                                                                   GBP'000       GBP'000 
 Declared and paid during the year 
      Final dividend for 2021: 6.50p (2020 - 1.75p)                  1,037           289 
      Interim dividend for 2022: 1.75p (2021 - 1.75p)                  279           289 
------------------------------------------------------------  ------------ 
                                                                     1,316           578 
                                                              ------------  ------------ 
 
 Proposed for approval by shareholders at the AGM 
      Final dividend for 2022: 7.5p (2021- 6.5p)                     1,196         1,037 
------------------------------------------------------------  ------------  ------------ 
 
 
 6. Trade and other receivables 
                                                                      Group              Company 
                                                                   2022      2021      2022       2021 
                                                                GBP'000   GBP'000   GBP'000    GBP'000 
 
 Trade receivables (net of allowance for expected credit 
  losses)                                                        10,167     8,764     2,366      2,184 
 Amounts owed by subsidiary undertakings                              -         -    13,024     13,872 
 Amounts owed by joint venture                                      228       130         -          - 
 Other receivables                                                1,001       475         4         79 
                                                                         -------- 
                                                                 11,396     9,369    15,394     16,135 
                                                               --------  --------  --------  --------- 
 
 (a) Trade receivables 
 
 Trade receivables are denominated in the following currencies: 
                                                                      Group              Company 
                                                                   2022      2021      2022       2021 
                                                                GBP'000   GBP'000   GBP'000    GBP'000 
 
 Sterling                                                         5,554     6,112     1,576      1,675 
 Euro                                                             1,786     1,692       790        509 
 US dollar                                                        2,406       695         -          - 
 Other currencies                                                   421       265         -          - 
------------------------------------------------------------             --------            --------- 
                                                                 10,167     8,764     2,366      2,184 
                                                               --------  --------  --------  --------- 
 
 Trade receivables are non-interest bearing, generally have 30 day terms, and are shown net 
  of provision for expected credit losses. The aged analysis of trade receivables after provision 
  for expected credit losses is as follows: 
 
                                                                      Group              Company 
                                                                   2022      2021      2022       2021 
                                                                GBP'000   GBP'000   GBP'000    GBP'000 
 
 Not past due                                                     7,234     7,268     2,316      2,033 
 < 30 days                                                        2,062     1,381        24        122 
 30-60 days                                                          64       102        19         28 
 60-90 days                                                          11        28         8          - 
 > 90 days                                                          796      (15)       (1)          1 
------------------------------------------------------------   --------  --------  --------  --------- 
 Total                                                           10,167     8,764     2,366      2,184 
-------------------------------------------------------------  --------  --------  --------  --------- 
 
 In the Group, trade receivables with a nominal value of GBP52,000 (2021 - GBP43,000) were 
  impaired and fully provided as at 30th April, 2022. During the year, bad debts of GBP20,000 
  (2021 - GBP81,000) were recovered and bad debts of GBP29,000 (2021 - GBP16,000) were incurred. 
 
 In the Company, trade receivables with a nominal value of GBP33,000 (2021 - GBP11,000) were 
  impaired and fully provided as at 30th April, 2022. During the year, bad debts of GBP7,000 
  (2021 - GBP69,000) were recovered and bad debts of GBP29,000 (2021 - GBP7,000) were incurred. 
 
 (b) Amounts owed by joint venture 
 
 Amounts owed by joint venture are non-interest bearing and have 30 day terms. The aged analysis 
  of amounts owed by joint venture net of provision for expected credit losses as follows: 
 
                                                                                          Group 
                                                                                       2022       2021 
                                                                                    GBP'000    GBP'000 
 
 Not past due                                                                           135         50 
 < 30 days                                                                               47         33 
 30-60 days                                                                              34         41 
 60-90 days                                                                              12          6 
------------------------------------------------------------   --------  --------  --------  --------- 
 Total                                                                                  228        130 
-------------------------------------------------------------  --------  --------  --------  --------- 
 
 At 30th April, 2022 there was no provision for expected credit losses relating to amounts 
  owed by joint venture (2021 - nil). 
 
 (c) Intercompany receivables 
 
 All amounts due from Group companies are repayable on demand and are not charged interest. 
  The majority of intercompany balances are to group entities with liquid assets and are capable 
  of being repaid on demand. There has been no impairment recognised on intercompany receivables 
  (2021 - nil). 
 
 There are loans to 'MS INTERNATIONAL Estates Limited', which although repayable on demand, 
  are supported by properties, which will not be immediately realisable. The directors have 
  assessed the likelihood of default and the loss in the event of default as well as the balance 
  at the reporting date and conclude that there is no material impairment of the receivable. 
 
 The amounts receivable at the reporting date can be categorised as: 
                                                                                         Company 
                                                                                       2022       2021 
                                                                                    GBP'000    GBP'000 
 
 Amounts due from companies backed by liquid assets                                   7,099      7,587 
 Amounts due from 'MS INTERNATIONAL Estates Limited'                                  5,925      6,285 
---------------------------------------------------------------------------------  --------  --------- 
                                                                                     13,024     13,872 
 
 
 
7. Cash and cash 
equivalents 
                                                 Group                               Company 
                                               2022                   2021               2022     2021 
                                            GBP'000                GBP'000            GBP'000  GBP'000 
 
Cash at bank and in hand                     18,092                 17,390              3,258      943 
Restricted cash held in 
 Escrow - maturing in 
 more than 90 days                            1,158                  6,165                  -        - 
Total cash                                   19,250                 23,555              3,258      943 
 
The balance held in Escrow provides security to Lloyds Bank plc in respect of any guarantees, 
 indemnities, and performance bonds given by the Group in the ordinary course of business. 
 
8. Net funds 
 
Analysis of net funds                            Group                               Company 
                                               2022                   2021               2022     2021 
                                            GBP'000                GBP'000            GBP'000  GBP'000 
 
Cash and cash equivalents                    18,092                 17,390              3,258      943 
Restricted cash held in 
 Escrow                                       1,158                  6,165                  -        - 
Lease liabilities                           (1,511)                  (545)            (5,214)  (5,609) 
                                             17,739                 23,010            (1,956)  (4,666) 
 
Group movement in net 
funds 
                                 Cash and cash       Restricted cash held   Lease liabilities   Total 
                                   equivalent              in Escrow 
 
At 30th April, 2020                          16,125                      -            (1,229)   14,896 
Cash flows                                    1,306                  6,165                327    7,798 
Foreign exchange 
 adjustments                                   (41)                      -               (16)     (57) 
Leases on acquisition                             -                      -                402      402 
Other changes                                     -                      -               (29)     (29) 
At 30th April, 2021                          17,390                  6,165              (545)   23,010 
Cash flows                                      657                (5,007)                405  (3,945) 
Foreign exchange 
 adjustments                                     45                      -                  7       52 
New leases                                        -                      -            (1,327)  (1,327) 
Other changes                                     -                      -               (51)     (51) 
At 30th April, 2022                          18,092                  1,158            (1,511)   17,739 
 
Company movement in 
net funds 
                                                             Cash and cash  Lease liabilities   Total 
                                                               equivalents 
 
At 30th April, 2020                                                  (391)            (5,992)  (6,383) 
Cash flows                                                           1,334                560    1,894 
Other changes                                                            -              (177)    (177) 
At 30th April, 2021                                                    943            (5,609)  (4,666) 
Cash flows                                                           2,315                560    2,875 
Other changes                                                            -              (165)    (165) 
At 30th April, 2022                                                  3,258            (5,214)  (1,956) 
 
 
 
9. Reserves 
 
Share capital 
The balance classified as share capital includes the nominal value on issue of the Company's 
 equity share capital, comprising 10p ordinary shares. 
 
Capital redemption reserve 
The balance classified as capital redemption reserve represents the nominal value of issued 
 share capital of the Company, repurchased. 
 
Other reserves 
Following the transfer of assets held at valuation by the Company to a subsidiary company, 
 a reserve has been created which is non-distributable. This is equal to the revaluation reserve 
 previously arising. 
 
Additionally, it includes the non-distributable retained reserve for the revaluation reserve 
 previously showing in the Company for properties now transferred to other members of the Group. 
 
Revaluation reserve 
The asset revaluation reserve is used to record increases in the fair value of land and buildings 
and decreases to the extent that such decrease relates to an increase on the same assets 
previously 
recognised in equity. 
 
Special reserve 
 The special reserve is a distributable reserve created following the cancellation of a share 
  premium account by way of court order in March 1993. 
 
Currency translation reserve 
The foreign currency translation reserve is used to record exchange differences arising from 
 the translation of the financial statements of foreign subsidiaries. It is also used to record 
 the effect of hedging net investments in foreign operations. 
 
Treasury shares 
The treasury share reserve is detailed as follows: 
                                                                                     2022     2021 
                                                                                  GBP'000  GBP'000 
 
Employee Share Ownership Trust                                                        100      100 
Shares in treasury (see below)                                                      2,689    2,959 
                                                                                    2,789    3,059 
 
The Employee Share Ownership Trust ("ESOT") provides for the issue of options over ordinary 
shares in the Company to Group employees, including executive directors, at the discretion 
of the Remuneration Committee. The trustee of the ESOT is Appleby Trust (Jersey) Ltd, an 
independent 
company registered in Jersey. 
 
The trust has purchased an aggregate 245,048 (2021 - 245,048) ordinary shares, which represents 
1.5% (2021 - 1.5%) of the issued share capital of the Company at an aggregate cost of GBP100,006. 
The market value of the shares at 30th April, 2022 was GBP728,000 (2021 - GBP380,000). The 
Company has not made any payments (2021 - nil) into the ESOT bank accounts during the year. 
Details of the outstanding share options for directors are included in the Directors' remuneration 
report. 
 
 The assets, liabilities, income, and costs of the ESOT have been incorporated into the Company's 
  financial statements. Total ESOT costs charged to the income statement in the year amounts 
  to GBP1,000 (2021 - GBP3,000). During the year, no options have been granted over shares (2021 
  - nil), no options on shares were exercised (2021 - nil) and no shares were purchased (2021 
  - nil). 
 
 The Company made the following purchases and cancellations of its own 10p ordinary shares 
  to be held in Treasury: 
                                                                                   Number  GBP'000 
 
Purchase of 1,000,000 shares from the Group's pension scheme on 11th 
 December, 2013                                                                 1,000,000    1,722 
Purchase of 646,334 shares on 30th January, 2014                                  646,334    1,237 
Purchase of 555,000 shares on 15th January, 2021                                  555,000      636 
Consideration paid for purchase of own shares                                   2,201,334    3,595 
Cancellation of 555,000 shares at weighted average rate                         (555,000)    (906) 
Net value of treasury shares                                                    1,646,334    2,689 
 
 

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