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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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 830.00 | 820.00 | 840.00 | 830.00 | 820.00 | 820.00 | 544 | 08:00:03 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Special Industry Machy, Nec | 83.96M | 4.12M | 0.2521 | 32.92 | 135.5M |
From Apr 2019 to Apr 2024
TIDMMSI
RNS Number : 2921J
MS International PLC
04 December 2018
Hot Features
Premium
MS INTERNATIONAL plc
Unaudited Interim Condensed
Group Financial Statements
27th October, 2018
EXECUTIVE DIRECTORS
Michael Bell
Michael O'Connell
Nicholas Bell
NON EXECUTIVE
Roger Lane-Smith
David Pyle
David Hansell
SECRETARY
David Kirkup
REGISTERED OFFICE
Balby Carr Bank
Doncaster
DN4 8DH
England
PRINCIPAL OPERATING DIVISIONS
Defence
Forgings
Petrol Station Branding
Petrol Station Superstructures
Chairman's Statement
For the first half year ended 27(th) October 2018, profit before taxation increased to GBP3.19m (2017 - GBP1.64m), on revenue of GBP37.74m (2017 - GBP34.63m). Earnings per share amounted to 15.2p (2017 - 7.8p).
It was a period of admirable progress for the Group overall, with operating divisions confronting changing market conditions with timely and appropriate action to ensure they took advantage of opportunities as they arose.
That determined approach to their respective markets is backed by the Group's strategy of continued investment in each of the divisions to ensure they are at their most effective. Such investment remains a priority and the rewards of this approach are evident in our latest results. Despite that ongoing investment, our long-established policy and commitment to fostering and maintaining a robust balance sheet has been validated with further growth in net cash to GBP16.65m, compared to GBP15.87m at the last year end.
Notable and most encouraging performances were achieved by the 'Forgings'; 'Petrol Station Superstructures' and 'Petrol Station Branding', divisions. However, our 'Defence' division - as a constituent part of the depressed UK defence equipment industry - is contending with the consequences of a seriously subdued home market, aggravated by a persistent lack of any real clarity, as to future demand.
The 'Defence' division is countering the effect of the challenges to the domestic market by focusing efforts on its international marketing activities in addition to our own investment in private venture funding of the design and development of both our new and existing weapon systems to meet the varied requirements and perceived opportunities outside of the UK. It is an essential, if costly strategy, but one which should enrich our international presence and reputation leading to enhanced sales.
The 'Forgings' division is making very good progress, reflecting the increasing benefits of a much improved inter-company supply chain between the UK and our maturing production capability at the new manufacturing and marketing facility in the United States. Operations in South America are holding their own at a time when some rather problematic national economic circumstances are prevailing in that region of the world.
The 'Petrol Station Superstructures' division is reaping the benefits of a marked recovery in both UK and mainland European markets. This division remains very well positioned to take full advantage of the growing number of opportunities coming through.
The 'Petrol Station Branding' division has continued to prosper and, in particular, grow the business across both an expanding customer base and additional regional markets. As a result, the division is making a welcome and substantial contribution to the Group's financial performance, pleasingly exceeding our expectations since the acquisition and subsequent expansion of the division from its Netherlands base into both Germany and the UK.
All such matters considered, the Board has declared a maintained interim dividend per share of 1.75p (2017-1.75p) payable to shareholders on the 4(th) January 2019.
Michael Bell 3(rd) December 2018
MS INTERNATIONAL plc
Michael Bell Tel: 01302 322133
Shore Capital (Nominated Adviser
and Broker)
Patrick Castle Tel: 020 7408 4090
Daniel Bush
Independent review report to MS INTERNATIONAL plc
Introduction
We have reviewed the condensed set of financial statements in the half-yearly financial report
for the 26 weeks ended 27 October 2018 which comprises the Interim condensed consolidated
income statement, the Interim condensed consolidated statement of comprehensive income, the
Interim condensed consolidated statement of financial position, the Interim consolidated statement
of changes in equity, the Interim consolidated cash flow statement and the related notes.
We have read the other information contained in the half-yearly financial report which comprises
only the Chairman's Statement and considered whether it contains any apparent misstatements
or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company, as a body, in accordance with International Standard
on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information performed
by the Independent Auditor of the Entity'. Our review work has been undertaken so that we
might state to the Company those matters we are required to state to them in an independent
review report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company as a body, for our review
work, for this report, or for the conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors.
As disclosed in note 2, the annual financial statements of the group are prepared in accordance
with International Financial Reporting Standards 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 Standard 34, 'Interim Financial Reporting', as
adopted by the European Union.
Our responsibility
Our responsibility is to express a conclusion to the Company on the condensed set of financial
statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK
and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor
of the Entity'. A review of interim financial information consists of making enquiries, primarily
of persons responsible for financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
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 26 weeks
ended 27 October 2018 is not prepared, in all material respects, in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Sheffield
3 December 2018
Interim condensed consolidated income
statement
26 weeks ended 27th Oct., 2018 26 weeks ended 28th Oct., 2017
unaudited unaudited
GBP000 GBP000
Products 30,100 28,173
Contracts 7,642 6,456
Revenue 37,742 34,629
Cost of sales (27,386) (25,926)
Gross profit 10,356 8,703
Distribution costs (1,565) (1,575)
Administrative expenses (5,525) (5,354)
Operating profit 3,266 1,774
Finance income/(cost) 2 (43)
Other finance costs - pension (82) (91)
Profit before taxation 3,186 1,640
Tax expense (679) (356)
Profit for the period attributable to equity
holders of the parent 2,507 1,284
Earnings per share: basic and diluted 15.2p 7.8p
Interim condensed consolidated statement of comprehensive income
26 weeks ended 26 weeks ended
27th Oct., 2018 28th Oct., 2017
unaudited unaudited
GBP000 GBP000
Profit for the period attributable to equity holders of the parent 2,507 1,284
Exchange differences on retranslation of foreign operations (76) 215
Other comprehensive income-items that will be reclassified
subsequently to profit or loss (76) 215
Remeasurement of defined benefit pension scheme liability 14 1,268
Deferred taxation on remeasurement of defined benefit pension scheme (2) (216)
Other comprehensive income-items that will not be reclassified
subsequent to profit or loss 12 1,052
Total comprehensive income for the period attributable to equity holders
of the parent 2,443 2,551
Interim condensed consolidated statement of financial position
27th Oct., 2018 28th April, 2018
unaudited audited
ASSETS GBP000 GBP000
Non-current assets
Intangible assets 4,718 4,893
Property, plant and equipment 20,779 20,766
Deferred income tax asset 1,052 1,092
26,549 26,751
Current assets
Inventories 15,643 11,666
Trade and other receivables 13,106 14,617
Income tax receivable 44 114
Prepayments 2,329 1,127
Cash and cash equivalents 16,646 15,866
47,768 43,390
TOTAL ASSETS 74,317 70,141
EQUITY AND LIABILITIES
Equity
Share capital 1,840 1,840
Capital redemption reserve 901 901
Other reserve 2,815 2,815
Revaluation reserve 6,055 6,055
Special reserve 1,629 1,629
Currency translation reserve 445 521
Treasury shares (3,059) (3,059)
Retained earnings 24,000 22,698
Total Equity 34,626 33,400
Non-current liabilities
Defined benefit pension liability 6,189 6,421
Deferred tax liabilities 1,595 1,625
7,784 8,046
Current liabilities
Trade and other payables 30,717 28,052
Current tax liabilities 1,190 643
31,907 28,695
TOTAL EQUITY AND LIABILITIES 74,317 70,141
Interim consolidated statement of changes in equity
Share Capital Other Revaluation Special Currency Treasury Retained Total
capital redemption reserve reserve reserve translation shares earnings unaudited
reserve reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 28th April,
2018 1,840 901 2,815 6,055 1,629 521 (3,059) 22,698 33,400
IFRS 15 opening
adjustment - - - - - - - (144) (144)
Profit for the
period - - - - - - - 2,507 2,507
Other
comprehensive
income/(loss) - - - - - (76) - 12 (64)
1,840 901 2,815 6,055 1,629 445 (3,059) 25,073 35,699
Dividend paid - - - - - - - (1,073) (1,073)
At 27th
October,
2018 1,840 901 2,815 6,055 1,629 445 (3,059) 24,000 34,626
Share Capital Other Revaluation Special Currency Treasury Retained Total
capital redemption reserve reserve reserve translation shares earnings unaudited
reserve reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 29th April,
2017 1,840 901 2,815 4,257 1,629 696 (3,059) 19,962 29,041
Profit for the
period - - - - - - - 1,284 1,284
Other
comprehensive
income - - - - - 215 - 1,052 1,267
1,840 901 2,815 4,257 1,629 911 (3,059) 22,298 31,592
Dividend paid - - - - - - - (1,073) (1,073)
At 28th
October,
2017 1,840 901 2,815 4,257 1,629 911 (3,059) 21,225 30,519
Interim consolidated cash flow statement
26 weeks
ended 26 weeks
27th Oct., ended 28th
2018 Oct., 2017
unaudited unaudited
GBP000 GBP000
Profit before taxation 3,186 1,640
Adjustments to reconcile profit before taxation to
net cash flows from operating activities
IFRS 15 opening adjustment (144) -
Depreciation charge 653 628
Amortisation charge 195 254
Profit on disposal of fixed assets (46) (75)
Finance costs 80 134
Foreign exchange movements (263) 79
Increase in inventories (3,977) (1,548)
Decrease in receivables 1,511 963
Increase in prepayments (1,202) (15)
Increase in payables 1,756 770
Increase/(decrease) in progress payments 909 (1,359)
Pension fund deficit reduction payments (300) (159)
Cash flows from operations 2,358 1,312
Net interest received/(paid) 2 (43)
Taxes paid (47) (157)
Net cash flow from operating activities 2,313 1,112
Investing activities
------------ ------------
Purchase of property, plant and equipment (593) (829)
Sale of property, plant and equipment 133 115
------------ ------------
Net cash flows used in investing activities (460) (714)
Financing activities
Dividend paid (1,073) (1,073)
Net cash flows used in financing activities (1,073) (1,073)
Movement in cash and cash equivalents 780 (675)
Opening cash and cash equivalents 15,866 15,210
Closing cash and cash equivalents 16,646 14,535
Notes to the interim consolidated financial statements
1 Corporate information
MS INTERNATIONAL plc is a public limited company incorporated in England and Wales. The Company's
ordinary shares are traded on the AIM market of the London Stock Exchange. The principal activities
of the Company and its subsidiaries ("the Group") are the design, manufacture, construction
and servicing of a range of engineering products and structures. These activities are grouped
into the following divisions:
Defence - design, manufacture and service of defence equipment.
Forging - manufacture of forgings.
Petrol Station Superstructures - design, manufacture, construction, branding, maintenance
and restyling of petrol station superstructures.
Petrol Station Branding - design and installation of the complete appearance of petrol stations.
The interim condensed consolidated financial statements of the Group for the twenty six weeks
ended 27th October, 2018 were authorised for issue in accordance with a resolution of the
Directors on 3rd December, 2018.
2 Basis of preparation and accounting policies
The annual consolidated financial statements of the Group are prepared in accordance with
IFRS as adopted by the European Union. The consolidated condensed set of financial statements
included in this half-yearly financial report which has not been audited has been prepared
in accordance with International Accounting Standard 34, "Interim Financial Reporting", as
adopted by the European Union. The accounting policies are consistent with those applied in
the Group Annual financial statements for the 52 weeks ended 28th April, 2018, except as stated
below following the adoption of IFRS15 and IFRS9.
The interim financial information has been reviewed by the Group's auditors, Grant Thornton
UK LLP, their report is included on page 4. These interim financial statements do not constitute
statutory financial statements within the meaning of section 435 of the Companies Act 2006.
The interim condensed consolidated financial statements do not include all the information
and disclosures required in the annual financial statements and should be read in conjunction
with the Group's annual financial statements as at 28th April, 2018.
IFRS 15 Revenue from contracts with customers has been adopted and applied retrospectively
without restatement, with the cumulative effect of initial application recognised as an adjustment
to the opening balance of retained earnings at 28th April, 2018. Previously revenue on contracts
within the Petrol Station Structure Division was recognised based on the stage of completion
of site activity. On applying IFRS15 revenue on these contracts will be recognised at the
completion of the contract. The effect of this change was a reduction of retained earnings
of GBP144,000 as at the 28th April, 2018, being the net of a reduction in revenue of GBP488,000
and an increase in work in progress of GBP344,000, with a balance sheet effect of increasing
inventories by GBP344,000, reducing receivables by GBP22,000 and payables by GBP466,000. If
IFRS15 had been applied to the period ended 28th October, 2017 then revenue would have been
reduced by GBP538,000, profit before taxation by GBP168,000, inventories increased by GBP370,000,
accounts receivable reduced by GBP80,000 and payables reduced by GBP457,000.
IFRS9 Financial instruments has been adopted. This adoption has no effect on revenue, profits
or balance sheet items. There are no other accounting standards or interpretations that have
become effective in the current reporting period which have had a material effect on the net
assets, results and disclosures of the Group.
The Group has not early adopted any other standard, interpretation or amendment that has been
issued but is not yet effective.
As at the reporting date, the assets and liabilities of the overseas subsidiaries are translated
into the presentation currency of the Group at the rate of exchange ruling at the balance
sheet date and their income statements are translated at the weighted average exchange rates
for the year. The exchange differences arising on the retranslation are taken directly to
a separate component of equity.
The figures for the year ended 28th April, 2018 do not constitute the Group's statutory accounts
for the period but have been extracted from the statutory accounts. The auditor's report on
those accounts, which have been filed with the Registrar of Companies, was unqualified and
did not contain any statement under section 498(2) or (3) of the Companies Act 2006.
3 Principal risks and uncertainties
The principal risk and uncertainties facing the Group relate to levels of customer demand
for the Group's products and services. Customer demand is driven mainly by general economic
conditions but also by pricing, product quality and delivery performance of MS INTERNATIONAL
plc and in comparison with our competitors. Sterling exchange rates against other currencies
can influence pricing.
Additionally the prosperity of the Group is underpinned by the intellectual property rights
of the products which have been developed in house and funded by the Group at considerable
cost. Challenges to the ownership of our intellectual property rights have increasingly become
a risk. Such threats are monitored and vigorously confronted and defended as they arise.
The Group has considerable financial resources together with long term contracts with a number
of customers. As a consequence, the Directors believe that the Group is well placed to manage
its business risk successfully despite the current uncertain economic outlook.
After making enquiries, the Directors have a reasonable expectation that the Company and the
Group have adequate resources to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in preparing these interim financial
statements.
4 Segment information
(a) Primary reporting format - divisional segments
The following table presents revenue and profit information about the Group's divisions for
the periods ended 27th October, 2018 and 28th October, 2017.
Defence Forgings Petrol Station Petrol Station Total
Superstructures Branding
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
unaudited unaudited
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue
From external
customers 9,010 9,133 7,764 7,029 7,677 6,500 13,291 11,967 37,742 34,629
From other
segments - - - - 292 146 120 103 412 249
Segment
revenue 9,010 9,133 7,764 7,029 7,969 6,646 13,411 12,070 38,154 34,878
Segment result 24 289 (232) (512) 1,179 109 2,295 1,888 3,266 1,774
Net finance
expense (80) (134)
Profit before
taxation 3,186 1,640
Taxation (679) (356)
Profit for the
period 2,507 1,284
Capital
expenditure 10 - 332 479 164 59 53 129
Depreciation 38 79 250 240 154 161 92 80
The following table presents segment assets and liabilities of the Group's divisions for the
periods ended 27th October, 2018 and 28th October, 2017.
Segmental
assets 28,248 28,366 5,327 4,374 11,059 10,052 11,066 7,692 55,700 50,484
Unallocated
assets 18,617 12,930
Total assets 74,317 63,414
Segmental
liabilities 20,093 16,476 2,382 1,658 4,510 2,849 4,115 3,142 31,100 24,125
Unallocated
liabilities 8,591 8,770
Total
liabilities 39,691 32,895
Unallocated assets includes certain fixed assets, intangible assets, current assets and deferred
tax assets. Unallocated liabilities includes the defined benefit pension scheme liability
and certain current liabilities which primarily relate to operations of Group functions.
5 Release of impairment provision
At 28th April, 2018, an impairment provision of GBP615,000, relating to the uncertainty of
the recovery of certain indirect taxes due to the Petrol Station Branding division, was made.
Following the resolution, with the relevant authorities, of the uncertainty the impairment
provision of GBP615,000 was released at 27th October, 2018.
6 Tax expense
The major components of tax expense in
the consolidated income statement are:
26 weeks ended 27th Oct., 2018 26 weeks ended 28th Oct., 2017
unaudited unaudited
GBP000 GBP000
Current tax charge 674 481
Current tax 674 481
Relating to origination and reversal of
temporary differences 5 (125)
Deferred tax 5 (125)
Total income expense reported in the
consolidated income statement 679 356
The UK corporation tax rate will remain at 19% until it reduces to 17% from April 2020. At
27th October, 2018 the rate reductions to 17% had been enacted. Deferred tax at 28th October,
2018 has therefore been provided at 17% 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 Petrol Sign bv has been provided at 25% being the main corporation
tax rate in The Netherlands.
7 Earnings per share
The calculation of basic earnings per share is based
on:
Profit for the period attributable to equity holders of
the parent of GBP2,507,000 (2017 -
(a) GBP1,284,000);
16,504,691 (2017 - 16,504,691) Ordinary shares, being
(b) the number of Ordinary shares in issue.
This represents 18,396,073 (2017 - 18,396,073) being the number of Ordinary shares in issue
less 245,048 (2017 - 245,048) being the number of shares held within the ESOT and less 1,646,334
(2017 - 1,646,334) being the number of shares purchased by the Company.
8 Dividends paid and proposed
26 weeks ended 27th Oct., 2018 26 weeks ended 28th Oct., 2017
unaudited unaudited
GBP000 GBP000
Declared and paid during the 26 week
period
Dividend on ordinary shares
Final dividend for 2018 - 6.50p (2017 -
6.50p) 1,073 1,073
Proposed for approval
Interim dividend for 2019 - 1.75p (2018
- 1.75p) 289 289
Dividend warrants will be posted on 3rd January, 2019 to those members registered on the books
of the Company on 14th December, 2018.
9 Property, plant and equipment
Freehold Plant and
property equipment Total
GBP000 GBP000 GBP000
At 28th April, 2018 17,534 15,536 33,070
Additions - 593 593
Disposals - (670) (670)
Exchange differences 105 78 183
At 27th October, 2018 17,639 15,537 33,176
At 28th April, 2018 354 11,950 12,304
Depreciation charge for the period 156 497 653
Disposals - (583) (583)
Exchange differences - 23 23
At 27th October, 2018 510 11,887 12,397
Net book value at 27th October, 2018 17,129 3,650 20,779
At 29th April, 2017 16,010 15,751 31,761
Additions - 829 829
Disposals - (677) (677)
Exchange differences 28 60 88
At 28th October, 2017 16,038 15,963 32,001
At 29th April, 2017 557 12,105 12,662
Depreciation charge for the period 94 535 629
Disposals - (637) (637)
Exchange differences 9 36 45
At 28th October, 2017 660 12,039 12,699
Net book value at 28th October, 2017 15,378 3,924 19,302
Analysis of cost or valuation
At professional valuation 2018 12,300 - 12,300
At cost 5,339 15,537 20,876
At 27th October, 2018 17,639 15,537 33,176
Analysis of cost or valuation
At professional valuation 2014 12,221 - 12,221
At cost 3,817 15,963 19,780
At 28th October, 2017 16,038 15,963 32,001
On 11th November, 2017, 26th July, 2017 and 28th March, 2018 the Group's land and buildings,
which consist of manufacturing and office facilities in the UK, Poland and USA were valued
by Dove Haigh Phillips (UK), KonSolid-Nieruchomosci (Poland) and Real Estate & Appraisal Services
inc (USA). Management determined that these constitute one class of asset under IFRS 13 (designated
as level 3 fair value assets), based on the nature, characteristics and risks of the properties.
The UK properties were valued on the basis of an existing use value in accordance with the
Appraisal and Valuation Standards (5th Edition) published by the Royal Institution of Chartered
Surveyors. The Poland property was valued based on the income approach, converting anticipated
future benefits in the form of rental income into present value. The USA property was valued
on an income and market value basis. For all properties, there is no difference between current
use and highest and best use.
The valuation of the UK properties has been processed in the financial statements. The Poland
property and the USA property valuations were sufficiently close to their carrying value such
that the valuations were not processed.
10 Cash and cash equivalents
For the purpose of the interim consolidated cash flow statement, cash and cash equivalents
are comprised of the following:
27th Oct., 2018 28th April, 2018
unaudited audited
GBP000 GBP000
Cash at bank and in hand 11,273 7,504
Short term deposits 5,373 8,362
16,646 15,866
11 Pension liability
The Company operates an employee pension scheme called the MS INTERNATIONAL
plc Retirement and Death Benefits Scheme ("the Scheme"). IAS19 requires
disclosure of certain information about the Scheme as follows:
- Until 5th April, 1997, the Scheme provided defined
benefits and these
liabilities remain in respect of service prior to 6th
April, 1997.
From 6th April, 1997 until 31st May, 2007 the Scheme
provided future
service benefits on a defined contribution basis.
- The last formal valuation of the Scheme was performed at
5th April,
2017 by a professionally qualified actuary.
- From April, 2016 the Company directly pays the expenses of
the Scheme.
With effect from April, 2018 the deficit reduction
payments paid
into the Scheme by the Company increased to GBP600,000 per
annum.
The deficit reduction contributions are paid on a
quarterly basis
with the first paid on 3rd April, 2018 and the last one
due for payment
on or before 5th January, 2027.
- From 1st June, 2007 the Company has operated a defined
contribution
scheme for its UK employees which is administered by a UK
pension
provider. Member contributions are paid in line with this
scheme's
documentation over the accounting period and the Company
has no further
obligations once the contributions have been made.
- During the period, the Scheme liability has reduced by
GBP232,000.
A re-measurement gain of GBP14,000 (2017 - GBP1,268,000)
has been
recognised through other comprehensive income and
comprises of a
GBP604,000 remeasurement loss compared to the interest
income on
the plan assets on plan assets and a GBP618,000 actuarial
gain due
to changes in financial assumptions. The actuarial gain
comprises
of a GBP453,000 gain which primarily reflected the higher
discount
rate in the period which decreased the value placed on the
Scheme's
liabilities at the period end. In addition there was a
GBP165,000
resulting from changes in the mortality assumption. The
interest
cost on the net defined benefit liability of GBP82,000 has
been recognised
through the income statement. The liability is reduced by
pension
fund deficit payments in the period of GBP300,000 (2017 -
GBP159,000).
- On 26th October, 2018 a High Court judgement ruled that
guaranteed
minimum pensions (GMP's) for pensionable service between
1990 and
1997 were required to be equalised for members of
contracted out
pension schemes.
However, the judgement did not set out a methodology for
how this
equalisation process should occur across all pension
schemes. The
Trustee Directors and the Company are consulting with the
Scheme's
advisors on how best to implement the equalisation
process.
Whilst broad industry wide estimates have suggested
potential increases
in pension schemes' liabilities of between 0% - 3%, any
additional
liability will be primarily dependent upon the Scheme
membership
profile and methodology adopted for calculating equalised
GMP's.
Given the uncertainty relating to the calculation
methodology to
be adopted and the short period of time since the
judgement it has
not been possible to accurately quantify any increase in
the Scheme's
liabilities for inclusion in these financial statements.
Any increase in the Scheme's liabilities arising from this
judgement
will be included in the annual financial statements for
the year
ending on 27th April, 2019.
12 Commitments and contingencies
The Company is contingently liable in respect of guarantees, indemnities
and performance bonds given in the ordinary course of business amounting
to GBP3,197,739 at 27th October, 2018 (2017 - GBP2,410,677).
In the opinion of the Directors, no material loss will arise in connection
with the above matters.
The Group and certain of its subsidiary undertakings are parties to legal
actions and claims which have arisen in the normal course of business.
The results of actions and claims cannot be forecast with certainty,
but the directors believe that they will be concluded without any material
effect on the net assets of the Group.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR BLBDDRUGBGIX
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December 04, 2018 02:00 ET (07:00 GMT)
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