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 
                                                                                               --------- 
 
 

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