TIDMMSI
RNS Number : 6157R
MS International PLC
01 July 2020
Chairman's Statement
Results and Review
A year ago, in my Chairman's Statement, I stated that we were
approaching 'very interesting times'. At that juncture, we were
reasonably confident of making good progress throughout the coming
year, although it later became evident that global, political and
economic uncertainty was gathering momentum and our businesses
would not be immune from its effects, as evidenced in our half year
results.
What we could not foresee was the advent of the 'Covid-19'
pandemic and the devastating effects that it would have on the
whole global economy, let alone our diverse businesses. The imposed
restrictions on movement in terms of personnel and goods seriously
impacted both our national and widespread international trading
activities.
Nevertheless, our commitment to research and development across
our 'Defence' business continued unabated. During the period we
expended some GBP2.00m (2019 - GBP0.96m) on expanding our portfolio
of small/medium calibre naval and land based stabilised weapon
systems.
I am however, bitterly disappointed to report a loss before
taxation for the year ending 30(th) April 2020, amounting to
GBP3.25m (2019 - profit GBP4.79m) and a loss per share of 15.1p
(2019 - profit per share 23.1p) on revenue of GBP61.15m (2019 -
GBP77.71m). Notwithstanding, the all-important balance sheet has
remained strong with cash at a very healthy GBP16.30m (2019 -
GBP22.89m) and no borrowings, excluding lease liabilities.
Outlook
Whilst prospects for the global economy are most uncertain and
the current downturn could be prolonged, we remain keenly confident
in the future success of our businesses. We believe that what we
have been doing, and will continue to do, particularly in terms of
developing innovative and creative new products while
simultaneously upgrading existing ones, is the proven, right
approach for the markets we serve that will deliver long term
rewards. Furthermore, we will strive to expand our services beyond
the current customer base into market sectors that have similar
product requirements.
'Defence' - we will continue to invest in new product
development, not only for naval applications but also suitable for
wider land-based systems. Recent innovations have attracted
considerable attention across international markets, and it is most
pleasing to report that some very exciting opportunities are now
being converted into much more serious sales prospects.
'Forgings' - our UK operations have been restructured to align
with the changing requirements of the national and international
markets we serve. We continue to invest in our highly successful
United States based manufacturing operations and we are
progressively gaining market share.
'Petrol Station Superstructures' - pent-up demand that resulted
from the pandemic 'close-down' is starting to be unleashed as
markets open up again for new construction and essential
maintenance work on existing sites. Our UK based operations will
directly benefit as will those we have in Poland, from where we
design, supply, erect and maintain petrol station structures across
many parts of eastern and northern Europe.
'Petrol Station Branding' - our UK and much larger European
mainland operations should also achieve a similar strong recovery
as international borders are reopened. The two signage and
corporate branding businesses we acquired in the Netherlands last
year both serve broader sectors than our traditional customer base.
They will greatly assist the expansion of the division to include
other signage markets such as 'Hospitality', - hotels and
conference centres; 'Automotive' - motor car showrooms;
'Wayfinding' - relating to airports, holiday theme parks etc., thus
adding to our strong petrol station market position. The enlarged
division will be addressed as the MSI-Sign Group.
It is appropriate on this occasion to express my appreciation to
all our employees, for their understanding and commitment to the
business, during what has been a most challenging and disruptive
year for everyone.
It is also proper to offer our thanks to HM Government and to
those Governments, in countries where we have operating businesses
located, for their 'Covid-19' support in what has been an
unprecedented time.
We remain committed to moving the business forward again and
with the unprecedented experience of the past three months almost
behind us, we have the resilience, experience and dedication, along
with a great team of people, to achieve our aim. Most importantly,
we also enjoy significantly strong financial resources to support
and develop opportunities as they arise.
At present the global outlook may be unclear, but with recent
positive steps out of the 'lockdown', we are confident that we have
the wherewithal not only to progressively recover but also to
prosper and take advantage of many exciting opportunities.
All matters considered the Board recommends the payment of a
prudent final dividend of 1.75p per share (2019 - 6.5p) making a
total for the year of 3.5p (2019 - 8.25p). The final dividend is
expected to be paid on 14(th) August 2020, to those shareholders on
the register at the close of business on 17th July 2020.
Michael Bell
30(th) June 2020
Copies of this announcement are available from the Company's
registered office at MS INTERNATIONAL plc, Balby Carr Bank,
Doncaster, DN4 8DH, England. The full Annual Report and Accounts,
which will include the Notice of AGM, will be posted to
shareholders shortly, will be 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 10(th) August 2020 at MS
INTERNATIONAL plc, Balby Carr Bank, Doncaster DN4 8DH.
Shareholders are advised to read the statement in the full
Annual Report and Accounts in relation to the arrangements for the
forthcoming Annual General Meeting because of the current
restrictions in force relating to public meetings due to Covid
19.
MS INTERNATIONAL plc
Michael Bell Tel: 01302 322133
Shore Capital (Nominated Adviser
and Broker)
Patrick Castle Tel: 020 7408 4090
Daniel Bush
Consolidated income statement
For the period ended 30th April, 2020
2020 2019
Continuing operations Total Total
GBP'000 GBP'000
Revenue 61,153 77,708
Cost of sales (48,275) (56,131)
------------------------------------------------------------------------------------------- --------- ---------
Gross profit 12,878 21,577
Distribution costs (3,455) (3,537)
Administrative expenses (12,542) (11,846)
(15,997) (15,383)
--------- ---------
Group operating (loss) / profit before exceptional items (3,119) 6,194
Past service pension costs - (1,198)
------------------------------------------------------------------------------------------- --------- ---------
Group operating (loss) / profit (3,119) 4,996
Interest received 133 93
Interest paid (103) (116)
Other finance costs - pensions (164) (186)
---------
(134) (209)
(Loss) / profit before taxation (3,253) 4,787
Taxation 762 (975)
------------------------------------------------------------------------------------------- --------- ---------
(Loss) / profit for the period attributable to equity holders of the parent (2,491) 3,812
------------------------------------------------------------------------------------------- --------- ---------
(Loss) / earnings per share: basic and diluted (15.1p) 23.1p
Consolidated statement of comprehensive income
For the period ended 30th April, 2020
2020 2019
Total Total
GBP'000 GBP'000
(Loss) / profit for the period attributable to equity holders of the parent (2,491) 3,812
------------------------------------------------------------------------------------------- --------- ---------
Exchange differences on retranslation of foreign operations (55) (242)
Net other comprehensive loss to be reclassified to profit or loss in subsequent
periods (55) (242)
-------------------------------------------------------------------------------------- --------- ---------
Remeasurement (losses) / gains on defined benefit pension scheme (2,197) 403
Deferred taxation on remeasurement on defined benefit scheme 545 (69)
Deferred taxation on revaluation surplus on land and buildings (110) -
----------------------------------------------------------------------------- --- --------- ---------
Net other comprehensive (loss) / income not being reclassified to profit or loss in
subsequent
periods (1,762) 334
-------------------------------------------------------------------------------------- --------- ---------
Total comprehensive (loss) / income for the period attributable to equity holders of
the parent (4,308) 3,904
-------------------------------------------------------------------------------------- --------- ---------
Consolidated and company statement of changes in equity
For the period ended 30th April, 2020
Share Capital Other Revaluation Share Currency Treasury Retained Total
capital redemption reserves reserve Premium translation shares earnings shareholders'
reserve account reserve funds
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
(a) Group
At 28th April,
2018 1,840 901 2,815 6,055 1,629 521 (3,059) 22,698 33,400
IFRS 15
adjustment - - - - - - - (144) (144)
------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
Profit for the
period - - - - - - - 3,812 3,812
Other
comprehensive
(loss) /
income - - - - - (242) - 334 92
------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
Total
comprehensive
(loss) /
income - - - - - (242) - 4,146 3,904
Dividends paid - - - - - - - (1,362) (1,362)
--------------- ------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
At 27th April,
2019 1,840 901 2,815 6,055 1,629 279 (3,059) 25,338 35,798
Loss for the
period - - - - - - - (2,491) (2,491)
Other
comprehensive
loss - - - - - (55) - (1,762) (1,817)
------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
Total
comprehensive
loss - - - - - (55) - (4,253) (4,308)
Dividends paid - - - - - - - (1,362) (1,362)
--------------- ------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
At 30th April,
2020 1,840 901 2,815 6,055 1,629 224 (3,059) 19,723 30,128
--------------- ------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
(b) Company
At 28th April,
2018 1,840 901 1,565 6,055 1,629 - (3,059) 18,627 27,558
IFRS 15
adjustment - - - - - - - (144) (144)
Reserve
transfer - - 6,055 (6,055) - - - - -
------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
Loss for the
period - - - - - - - (233) (233)
Other
comprehensive
income - - - - - - - 334 334
------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
Total
comprehensive
income - - - - - - - 101 101
Dividends paid - - - - - - - (1,362) (1,362)
--------------- ------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
At 27th April,
2019 1,840 901 7,620 - 1,629 - (3,059) 17,222 26,153
--------------- ------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
Profit for the
period - - - - - - - 1,366 1,366
Other
comprehensive
loss - - - - - - - (1,608) (1,608)
------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
Total
comprehensive
loss - - - - - - - (242) (242)
Dividends paid - - - - - - - (1,362) (1,362)
--------------- ------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
At 30th April,
2020 1,840 901 7,620 - 1,629 - (3,059) 15,618 24,549
--------------- ------- ---------- -------- ----------- ------- ----------- -------- -------- -------------
Consolidated and company statements of financial position
At 30th April, 2020
Group Company
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 20,111 20,426 1,121 1,265
Right-of-use assets 1,214 - 5,943 -
Intangible assets 4,140 4,483 - -
Investments in subsidiaries - - 18,036 15,036
Deferred income tax asset 1,875 1,156 1,875 1,241
------------------------------------- -------- -------- -------- --------
27,340 26,065 26,975 17,542
-------- -------- -------- --------
Current assets
Inventories 15,857 12,624 1,543 1,462
Trade and other receivables 4,589 7,044 15,433 22,489
Income tax receivable 719 44 139 21
Prepayments 1,775 1,774 296 299
Cash and cash equivalents 16,125 22,886 - -
------------------------------------- -------- -------- -------- --------
39,065 44,372 17,411 24,271
-------- -------- -------- --------
TOTAL ASSETS 66,405 70,437 44,386 41,813
------------------------------------- -------- -------- -------- --------
EQUITY AND LIABILITIES
Equity
Share capital 1,840 1,840 1,840 1,840
Capital redemption reserve 901 901 901 901
Other reserves 2,815 2,815 7,620 7,620
Revaluation reserve 6,055 6,055 - -
Share premium account 1,629 1,629 1,629 1,629
Currency translation reserve 224 279 - -
Treasury shares (3,059) (3,059) (3,059) (3,059)
(Loss) / profit for the period (2,491) 3,812 (979) (233)
Retained earnings brought forward 22,214 21,526 16,597 17,455
------------------------------------- -------- -------- -------- --------
TOTAL EQUITY SHAREHOLDERS' FUNDS 30,128 35,798 24,549 26,153
------------------------------------- -------- -------- -------- --------
Non-current liabilities
Defined benefit pension liability 8,563 6,802 8,563 6,802
Deferred income tax liability 1,641 1,567 - -
Lease liabilities 893 - 5,609 -
------------------------------------- -------- -------- -------- --------
11,097 8,369 14,172 6,802
-------- -------- -------- --------
Current liabilities
Bank overdraft - - 391 582
Trade and other payables 24,679 25,375 4,891 8,276
Income tax payable 165 895 - -
Lease liabilities 336 - 383 -
------------------------------------- -------- -------- -------- --------
25,180 26,270 5,665 8,858
-------- -------- -------- --------
TOTAL EQUITY AND LIABILITIES 66,405 70,437 44,386 41,813
------------------------------------- -------- -------- -------- --------
Consolidated and company cash flow statements
For the period ended 30th April, 2020 Group Company
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
(Loss) / profit before taxation (3,253) 4,787 1,129 (312)
Adjustments to reconcile profit before taxation to net cash inflow
/ (outflow) from operating
activities
Past service pension costs - 1,198 - 1,198
IFRS 15 working capital adjustment - (144) - (144)
Depreciation charge 1,671 1,318 1,001 551
Amortisation charge 631 375 - -
Net increase of impairment in investment in subsidiary undertaking - - - 168
Profit on sale of fixed assets (104) (80) (93) (60)
Dividends received - - (2,345) (690)
Finance costs 134 209 412 249
Foreign exchange gains / (losses) 10 (460) - -
Increase in inventories (1,445) (958) (81) (445)
Decrease / (increase) in receivables 3,019 7,573 4,057 (1,384)
Decrease / (increase) in prepayments 25 (647) 3 36
(Decrease) / increase in payables (1,021) (1,849) (3,462) 1,992
(Decrease) / increase in progress payments (1,611) (828) 571 80
Pension fund payments (600) (600) (600) (600)
-------------------------------------------------------------------- -------- -------- -------- --------
Cash (invested in) / generated from operating activities (2,544) 9,894 592 639
Net interest received / (paid) 66 (23) (59) (63)
Taxation (paid) / received (848) (797) 30 (36)
-------------------------------------------------------------------- -------- -------- -------- --------
Net cash (outflow) / inflow from operating activities (3,326) 9,074 563 540
Investing activities
Payments for acquisitions, net of cash acquired (1,178) - - -
Dividends received from subsidiaries - - 1,895 690
Purchase of property, plant and equipment (721) (891) (409) (284)
Proceeds on disposal of property, plant and equipment 128 199 101 176
-------- --------
Net cash (outflow) / inflow from investing activities (1,771) (692) 1,587 582
-------------------------------------------------------------------- -------- -------- -------- --------
Financing activities
Lease payments (268) - (597) -
Dividends paid (1,362) (1,362) (1,362) (1,362)
-------------------------------------------------------------------- -------- -------- -------- --------
Net cash outflow from financing activities (1,630) (1,362) (1,959) (1,362)
-------------------------------------------------------------------- -------- -------- -------- --------
(Decrease) / increase in cash and cash equivalents (6,727) 7,020 191 (240)
Opening cash and cash equivalents / (bank overdraft) 22,886 15,884 (582) (342)
Exchange differences on cash and cash equivalents (34) (18) - -
-------------------------------------------------------------------- -------- -------- -------- --------
Closing cash and cash equivalents / (bank overdraft) 16,125 22,886 (391) (582)
-------------------------------------------------------------------- -------- -------- -------- --------
The financial information set out above does not constitute the Company's statutory accounts
for the periods ended 30th April, 2020 or 27(th) April, 2019 but is derived from those accounts.
Statutory accounts for 2019 have been delivered to the Registrar of Companies, and those for
2020 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 periods ended 30th April, 2020 and 27th April, 2019.
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 not allocated to operating segments.
'Defence' 'Forgings' 'Petrol Station 'Corporate Total
Superstructures' Branding'
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue
From external
customers 23,464 26,678 11,482 15,695 11,910 15,871 14,297 19,464 61,153 77,708
From other
segments - - - - 386 450 123 226 509 676
-------------- ------- ------- ------- ------- -------- -------- ------- ------- ------- -------
Segment
revenue 23,464 26,678 11,482 15,695 12,296 16,321 14,420 19,690 61,662 78,384
------- ------- -------- --------
Segment result (289) 2,836 (340) (442) 3 2,055 (2,493) 1,745 (3,119) 6,194
Past service pension costs - (1,198)
Net finance
costs (134) (209)
-------------- ------- -------
(Loss) /
profit before
taxation (3,253) 4,787
Taxation 762 (975)
-------------- ------- -------
(Loss) /
profit for
the period (2,491) 3,812
-------------- ------- -------
Segmental
assets 26,666 29,942 3,570 8,988 8,382 10,787 10,740 9,291 49,358 59,008
Unallocated
assets (see
below) 17,047 11,429
-------------- ------- -------
Total assets 66,405 70,437
-------------- ------- -------
Segmental
liabilities 16,639 19,500 1,285 6,125 2,274 4,330 4,922 2,806 25,120 32,761
Unallocated
liabilities
(see below) 11,157 1,878
-------------- ------- -------
Total
liabilities 36,277 34,639
-------------- ------- -------
Capital
expenditure 80 67 62 406 293 196 286 118 721 787
Depreciation 222 77 620 517 346 488 235 365 1,423 1,447
-------------- ------- ------- ------- ------- -------- -------- ------- ------- ------- -------
Unallocated assets include certain fixed assets (including all UK properties), intangible
assets, current assets and deferred tax assets. Unallocated liabilities include the defined
pension benefit scheme liability and certain current liabilities.
Geographical analysis
The following table presents revenue and expenditure and certain assets and liabilities information
by geographical segment for the periods ended 30th April, 2020 and 27th April, 2019. The Group's
geographical segments are based on the location of the Group's assets. Revenue from external
customers is based on the geographical location of its customers.
United Kingdom Europe Americas Rest of the Total
World
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External revenue 21,036 30,755 30,748 33,143 8,401 9,572 968 4,238 61,153 77,708
Non-current assets 17,803 17,637 5,017 3,832 4,520 4,596 - - 27,340 26,065
Current assets 29,004 34,301 8,378 7,670 1,683 2,401 - - 39,065 44,372
Liabilities 30,473 31,701 5,051 2,260 753 679 - - 36,277 34,640
Capital
expenditure 477 350 244 190 - 351 - - 721 891
------------------ ------- ------- ------- -------- ------- -------- ------- ------- ------- --------
Information about major 2020 2019
customers
Revenue from major customers arising from sales reported in the GBP'000 GBP'000
'Defence' segment:
Customer 1 - 10,871
Customer 1 12,633 -
Revenue from major customers arising from sales reported in the 'Corporate
Branding' segment:
Customer 1 - 11,905
Customer 1 3,841 -
---- ------------------ ----- ----- ----- ------ ----- ----- ----- --- ------- ------- -------
2 Employee 2020 2019
information
Number Number
The average number of employees, including executive directors, during the period was:
Production 252 264
Technical 66 65
Distribution 45 27
Administration 85 91
--------------------------------------------------------------------------------------------------- ------- -------
448 447
------ ----- --- ------- ------- -------
(a) Staff costs 2020 2019
Including executive directors, employment costs were GBP'000 GBP'000
as follows:
Wages and salaries 16,893 17,609
Social Security costs 2,629 1,934
Other pension costs 870 666
--------------------------------------------------------------------------------------------------- ------- -------
20,392 20,209
------ ----- --- ------- ------- -------
2020 2019
(b) Directors' emoluments GBP'000 GBP'000
Aggregate directors' emoluments 1,300 1,672
Pension contributions 33 47
---------------------------------------------------------- ------- -------
1,333 1,719
------- -------
3 Past service pension costs 2020 2019
GBP'000 GBP'000
Guaranteed minimum pension equalisation
adjustment - 1,198
----------------------------------------------- ------- -------
- 1,198
------- -------
4 (a) Taxation
The charge for taxation comprises: 2020 2019
GBP'000 GBP'000
Current tax
United Kingdom corporation tax (510) 540
Adjustments in respect of previous years 165 (16)
Foreign corporation tax (203) 635
------------------------------------------------------------------ ------- -------
Group current tax (548) 1,159
------------------------------------------------------------------ ------- -------
Deferred tax
Origination and reversal of temporary differences (95) (247)
Adjustments in respect of prior years (153) 63
Change in tax rate 34 -
---- ----------------------------------------------------------------- ------- -------
Group deferred tax (214) (184)
------------------------------------------------------------------ ------- -------
Tax on (loss) / profit (762) 975
------------------------------------------------------------------ ------- -------
Tax relating to items charged or credited to other comprehensive
income:
Deferred tax
Deferred tax on measurement gains on pension scheme current
year 545 69
Deferred tax on revaluation surplus on land and buildings (110) -
---- ----------------------------------------------------------------- ------- -------
Deferred tax in the Consolidated statement of comprehensive
income 435 69
------------------------------------------------------------------ ------- -------
(b) Factors affecting the tax charge for the year
The tax assessed for the period differs to the standard rate of corporation
tax in the UK (19%) (2019 - 19%). The differences are explained below:
2020 2019
GBP'000 GBP'000
(Loss) / profit before tax (3,253) 4,787
------- -------
(Loss) / profit multiplied by standard rate of corporation
tax of 19% (2019 - 19%) (618) 910
Expenses not deductible for tax purposes (420) (102)
Adjustments in respect of overseas tax rates 230 120
Current tax adjustment in respect of prior periods 165 (16)
Deferred tax adjustment in respect of prior periods (153) 63
Deferred tax adjustment in respect of change in rate 34 -
---- ----------------------------------------------------------------- ------- -------
Total tax charge for the period (762) 975
------------------------------------------------------------------ ------- -------
(c) Factors affecting future tax charge
A change to the main UK corporation tax rate was enacted in a budget
resolution on 17th March, 2020. From 1 April, 2020 the enacted rate
remains at 19%, cancelling the previously enacted rate reduction to
17%. Deferred tax at 30th April, 2020 has therefore been provided at
19%. Deferred tax in relation to intangibles recognised on the acquisition
of 'MSI-Sign Group B.V.' has been provided at 25%, being the main corporation
tax rate in The Netherlands.
5 Earnings per share
The calculation of basic earnings per share is based
on:
(a) Loss for the period attributable to equity holders of the
parent of GBP2,491,000 (2019 - profit of GBP3,812,000).
(b) 16,504,691 (2019 - 16,504,691) Ordinary shares, being the weighted
average number of Ordinary shares in issue.
This represents 18,396,073 (2019 - 18,396,073) being the weighted average
number of Ordinary shares in issue less 1,891,382 (2019 - less 1,891,382)
being the weighted average number of shares both held within the ESOT
245,048 (2019 - 245,048) and purchased by the Company 1,646,334 (2019
- 1,646,334).
The share options issued in the period do not have a dilutive effect on
the loss for the period.
6 Dividends paid and proposed 2020 2019
GBP'000 GBP'000
Declared and paid during the year
On Ordinary shares
Final dividend for 2019: 6.50p (2018 - 6.50p) 1,073 1,073
Interim dividend for 2020: 1.75p (2019 - 1.75p) 289 289
------------------------------------------------------------- -------- --------
1,362 1,362
-------- --------
Proposed for approval by shareholders at the AGM
Final dividend for 2020: 1.75p (2019 - 6.50p) 289 1,073
------------------------------------------------------------- -------- --------
7 Trade and other receivables
Group Company
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
Trade receivables 4,413 6,913 932 3,456
Retentions on contracts - 113 - -
Amounts owed by subsidiary undertakings - - 14,422 19,029
Other receivables 176 18 79 4
----------------------------------------------- ----------- -------- -------- ---------------
4,589 7,044 15,433 22,489
----------- -------- -------- ---------------
The aggregate amount of costs incurred and recognised profits to date on contracts is
GBP11,858,000
(2019 - GBP15,819,000).
(a) Trade receivables are denominated in the following
currencies:
Group Company
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
Sterling 1,551 3,674 838 2,751
Euro 2,319 2,141 94 701
US dollar 349 778 - -
Other currencies 194 320 - 4
----------------------------------------------- ----------- -------- -------- ---------------
4,413 6,913 932 3,456
----------- -------- -------- ---------------
Trade receivables are non-interest bearing and are generally on 30 day terms and are shown
net of provision for impairment. The aged analysis of trade receivables after impairment is
as follows:
Group Total Not past due < 30 days 30-60 days 60-90 days > 90 days
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
2020 4,413 2,745 343 211 327 787
2019 6,913 6,245 505 148 13 2
As at 30th April, 2020 trade receivables at a nominal value of GBP109,000 (2019 - GBP105,000)
were impaired and fully provided. Bad debts of GBP62,000 (2019 - GBP65,000) were recovered
and bad debts of GBP68,000 (2019 - GBP52,000) were incurred.
Company
2020 932 865 54 3 7 3
2019 2,764 2,649 40 81 - (6)
As at 30th April, 2020 trade receivables at a nominal value of GBP73,000 (2019 - GBP51,000)
were impaired and fully provided. Bad debts of GBP33,000 (2019 - GBP20,000) were recovered
and bad debts of GBP55,000 (2019 - GBP39,000) were incurred.
(b) Retentions on contracts are denominated in the
following currencies:
Group Company
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
Sterling - 113 - -
-------------- ----------- ------------- ------------- ------------- ------------- -------------
- 113 - -
-------------- ------------- ------------- ------------- ------------- -------------
Retentions on contracts are non-interest bearing and represent amounts contractually retained
by customers on completion of contracts for specific time periods as follows:
Group Total Up to 6 6 - 12 12 - 18 18 - 24
months months months months
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
2020 - - - - -
2019 113 93 20 - -
Company
2020 - - - - -
2019 - - - - -
(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
(2019 - GBPnil).
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:
2020 2019
GBP'000 GBP'000
Amounts due from companies backed by
liquid assets 7,530 7,219
Amounts due from 'MS INTERNATIONAL Estates
Limited' 6,892 11,810
------------------------------------------- ------------- ------------- ------------- -------------
14,422 19,029
-------------- ----------- ------------- ------------- ------------- ------------- -------------
8 Cash and cash equivalents / bank overdraft Group Company
2020 2019 2020 2019
GBP'000 GBP'000 GBP'000 GBP'000
Cash at bank and in hand 16,125 17,151 - -
Short-term deposits - 5,735 - -
Bank overdraft - - (391) (582)
---------------------------------------------- -------- -------- -------- --------
16,125 22,886 (391) (582)
-------- -------- -------- --------
9 Net funds
Analysis of net funds Group
2020 2019
GBP'000 GBP'000
Cash and cash equivalents 16,125 22,886
Lease liabilities (1,229) -
--- ------------------------------ ----------------------- -------------------
14,896 22,886
------------------- -------------------
Group movement in net funds
Cash / bank overdraft Lease liabilities Total
Net funds as at 28th April, 2018 15,884 - 15,884
Cash flows 7,020 - 7,020
Foreign exchange adjustments (18) - (18)
---------------------------------- ----------------------- ------------------- -------------------
Net funds as at 27th April, 2019 22,886 - 22,886
---------------------------------- ----------------------- ------------------- -------------------
Recognised on adoption of IFRS 16 - (781) (781)
---------------------------------- ----------------------- ------------------- -------------------
Net funds as at 28(th) April,
2019 22,886 (781) 22,105
---------------------------------- ----------------------- ------------------- -------------------
Cash flows (6,727) 268 (6,459)
Foreign exchange adjustments (34) 6 (28)
Leases on acquisition - (501) (501)
New leases - (185) (185)
Other changes - (36) (36)
---------------------------------- ----------------------- ------------------- -------------------
Net funds as at 30 April, 2020 16,125 (1,229) 14,896
---------------------------------- ----------------------- ------------------- -------------------
10 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 - Company
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. This also includes the impact of the change in the enacted corporation
tax rate from 17% to 19% on the related deferred tax provision from prior year.
Share premium account
The balance classified as special reserve represents the share premium on the issue of the
Company's equity share capital.
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
2020 2019
GBP'000 GBP'000
Employee Share Ownership Trust 100 100
Shares in treasury (see below) 2,959 2,959
---------------------------------------------------------------------- --------------- ---------
3,059 3,059
--------------- ---------
During 1991 the Company established an Employee Share Ownership Trust ("ESOT"). The trustee
of the ESOT is Appleby Trust (Jersey) Ltd, an independent company registered in Jersey. The
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 trust has purchased an aggregate 245,048 (2019 - 245,048) Ordinary shares, which represents
1.3% (2019 - 1.3%) of the issued share capital of the Company at an aggregate cost of GBP100,006.
The market value of the shares at 30th April, 2020 was GBP338,000 (2019 - GBP505,000). The
Company has made payments of GBPnil (2019 - GBPnil) into the ESOT bank accounts during the
period. During the period 1,575,000 (2019 - nil) options over shares have been granted. 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 period amounts
to GBP8,000 (2019 - GBP7,000). During the period no options on shares were exercised (2019
- nil) and no shares were purchased (2019 - nil).
The Company made the following purchases of its own 10p Ordinary shares to be held in Treasury:
GBP'000
1,000,000 shares from the Group's pension scheme on 11th December, 2013. 1,722
646,334 shares on 30th January, 2014. 1,237
---------
2,959
---------
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
FR SDMFASESSESM
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