TIDMMSI

RNS Number : 7615I

MS International PLC

16 December 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
    MS INTERNATIONAL plc 
 
 
 
 
 Unaudited Interim Condensed 
 
 Group Financial Statements 
 
     31st October, 2020 
 
 
 
 
 
 
 
        EXECUTIVE DIRECTORS 
           Michael Bell 
         Michael O'Connell 
           Nicholas Bell 
 
 
 
 
      NON-EXECUTIVE DIRECTORS 
         Roger Lane-Smith 
           David Hansell 
 
 
 
 
         COMPANY SECRETARY 
           David Kirkup 
 
 
 
 
         REGISTERED OFFICE 
          Balby Carr Bank 
             Doncaster 
              DN4 8DH 
              England 
 
 
 
 
   PRINCIPAL OPERATING DIVISIONS 
 
             'Defence' 
             'Forgings' 
  'Petrol Station Superstructures' 
        'Corporate Branding' 
 
 
 
 
 
 Chairman's Statement 
 
 

Results

We entered our 2020/21 financial year confronted by a subdued general economy, growing 'Brexit' uncertainty and a rapidly spreading global pandemic which, collectively, were making for 'a perfect storm' that would inevitably negatively impact all our business activities.

Yet, with a strong balance sheet, a good order book, a growing international market presence across our increasingly diverse range of businesses and recently developed new products and services coming through, we were, at least, in a good starting position to face the rapidly intensifying external pressures.

We tightened our belts and gratefully welcomed the financial assistance generously provided by not only HM Government but also that of other countries where we have business operations.

The unavoidable disruption to our businesses has, nevertheless, been substantial. Of considerable detriment were the restrictions on international travel that prevented both our own staff, and those of our customers, travelling to conduct the many practical elements of our business operations. It certainly proved to be a far more testing and stressful experience for everyone than my earlier prediction, that the Group was approaching 'interesting times'!

Accordingly, Group revenue for the six months to October 2020 amounted to GBP26.34m (2019 - GBP33.32m), a reduction which resulted in a loss before tax of GBP1.08m (2019 - Loss GBP 0.49m).

Nevertheless, cash remained very strong at GBP14.01m, which compares to the GBP16.12m reported at last year end.

Prospects

The recent announcement that vaccines are becoming available to counter the current global pandemic, will surely assist our businesses to move forward positively once more.

In anticipation of such an outcome, we have already made a number of strategic moves that we believe will assist all our businesses to prosper, in particular at this juncture, our 'Defence' and 'Corporate Branding' operations.

'Defence'

Whilst the domestic market remains disappointingly in the doldrums, our marketing commitment to the global arena is proving to be very rewarding. We are winning defence equipment orders from new customers and overseas sales are now by far the mainstay for this business. Pleasingly, various product trials and demonstrations in the United States have been well received and we are vigorously pursuing these opportunities. Furthermore, the US State Department has officially announced its intention to procure MSI-DS medium calibre gun weapon systems for one of their current Foreign Military Sales Programmes.

'Forgings'

Our forgings businesses, with operations in the UK, USA and Brazil, would undoubtably benefit from an economic upturn and a more stable global commercial environment. Major international customers are generally operating their manufacturing systems on a 'just-in-time' basis and so the ordering of components from us is naturally finely tuned. Our operations are geared accordingly and will comfortably accommodate the requirements of any economic recovery.

'Petrol Station Superstructures'

This division holds a strong market position in constructing fuelling stations, across many parts of Europe operating from bases in both the UK and Poland. We are noting a recent upturn in the number of new station developments around the market and, significantly, a growing number of complex and sophisticated constructions are becoming the norm. In addition to fuel supply, whether it be petroleum, electricity or hydrogen, these new sites incorporate larger shops, sophisticated car valeting services, undercover electric vehicle charging and restaurant and coffee house/snack facilities. This is all good news for our design and build superstructures business.

'Corporate Branding'

When we acquired The Netherlands-based business, Petrol Sign, its prime focus was the branding of petrol stations, predominantly in the Benelux countries. Through some small, but strategic acquisitions, the business now also designs, manufactures and services branding for a much broader customer base that includes specialist airport 'way-finding' systems, plus the substantial hospitality and automotive markets. The division is successfully expanding these service operations into the UK, Germany, Poland and Italy.

Despite the various factors which have combined to undermine first half performance, I am pleased to report that the value of the Group order book has risen over the period. This highlights the strength of our businesses.

We, therefore, firmly perceive that the Company is in an outstandingly strong position to benefit considerably, not only from the moves that we are making in the business, but also from any economic recovery following global control of the pandemic.

All such matters considered, the Board has declared a maintained interim dividend per share of 1.75p (2019 - 1.75p) payable to shareholders on the 19th January 2021.

Michael Bell 15(th) December 2020

 
 MS INTERNATIONAL plc 
 Michael Bell                                      Tel: 01302 322133 
 
 Shore Capital (Nominated Adviser and Broker) 
 Patrick Castle                                   Tel: 020 7408 4090 
 Daniel Bush 
 
 
 Independent review report to MS INTERNATIONAL plc 
 
 Introduction 
 
 We have reviewed the condensed set of financial statements in the half-yearly financial report 
  of MS INTERNATIONAL plc (the 'company') for the six months ended 31 October 2020 which comprises 
  the Interim condensed consolidated income statement, the Interim condensed consolidated statement 
  of comprehensive income, the Interim condensed consolidated statement of financial position, 
  the Interim consolidated statement of changes in equity, the Interim consolidated cash flow 
  statement and the related notes. We have read the other information contained in the half-yearly 
  financial report which comprises only the Chairman's Statement and considered whether it contains 
  any apparent misstatements or material inconsistencies with the information in the condensed 
  set of financial statements. 
 
 Directors' responsibilities 
 
 The half-yearly financial report is the responsibility of, and has been approved by, the directors. 
  As disclosed in note 2, the annual financial statements of the group are prepared in accordance 
  with International Financial Reporting Standards as adopted by the European Union. The condensed 
  set of financial statements included in this half-yearly financial report has been prepared 
  in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as 
  adopted by the European Union. 
 
 Our responsibility 
 
 Our responsibility is to express a conclusion to the company on the condensed set of financial 
  statements in the half-yearly financial report based on our review. 
 
 Scope of review 
 
 We conducted our review in accordance with International Standard on Review Engagements (UK 
  and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor 
  of the Entity'. A review of interim financial information consists of making enquiries, primarily 
  of persons responsible for financial and accounting matters, and applying analytical and other 
  review procedures. A review is substantially less in scope than an audit conducted in accordance 
  with International Standards on Auditing (UK) and consequently does not enable us to obtain 
  assurance that we would become aware of all significant matters that might be identified in 
  an audit. Accordingly, we do not express an audit opinion. 
 
 The impact of uncertainties arising from the UK exiting the European Union and COVID-19 on 
  our review 
 
 Our review of the condensed set of financial statements in the half-yearly financial report 
  requires us to obtain an understanding of all relevant uncertainties, including those arising 
  as a consequence of the effects of macro-economic uncertainties such as Covid-19 and Brexit. 
  Such reviews assess and challenge the reasonableness of estimates made by the directors and 
  the related disclosures and the appropriateness of the going concern basis of preparation 
  of the financial statements. All of these depend on assessments of the future economic environment 
  and the company's future prospects and performance. 
 
 COVID-19 and Brexit are amongst the most significant economic events currently faced by the 
  UK, and at the date of this report their effects are subject to unprecedented levels of uncertainty, 
  with the full range of possible outcomes and their impacts unknown. We applied a standardised 
  firm-wide approach in response to these uncertainties when assessing the company's future 
  prospects and performance. However, no review of interim financial information should be expected 
  to predict the unknowable factors or all possible future implications for a company associated 
  with these particular events. 
 
 Conclusion 
 
 Based on our review, nothing has come to our attention that causes us to believe that the 
  condensed set of financial statements in the half-yearly financial report for the six months 
  ended 31 October 2020 is not prepared, in all material respects, in accordance with International 
  Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union . 
 
 Use of our report 
 
 This report is made solely to the company, as a body, in accordance with International Standard 
  on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information performed 
  by the Independent Auditor of the Entity'. Our review work has been undertaken so that we 
  might state to the company those matters we are required to state to it in an independent 
  review report and for no other purpose. To the fullest extent permitted by law, we do not 
  accept or assume responsibility to anyone other than the company as a body, for our review 
  work, for this report, or for the conclusion we have formed. 
 
 Grant Thornton UK LLP 
 Statutory Auditor, Chartered Accountants 
 Sheffield 
 15 December 2020 
Interim condensed consolidated income 
statement 
                                                    Half-year to 31st October, 2020  Half-year to 31st October, 2019 
                                                                          unaudited                        unaudited 
                                             Notes                          GBP'000                          GBP'000 
 
Products                                                                     19,727                           26,067 
Contracts                                                                     6,615                            7,250 
------------------------------------------- 
Revenue                                        5                             26,342                           33,317 
 
Cost of sales                                                              (19,831)                         (24,910) 
------------------------------------------- 
Gross profit                                                                  6,511                            8,407 
 
Distribution costs                                                          (1,297)                          (1,821) 
Administrative expenses                                                     (6,204)                          (6,988) 
------------------------------------------- 
Operating loss                                 5                              (990)                            (402) 
 
Finance costs                                                                  (45)                              (2) 
Other finance costs - pension                                                  (70)                             (82) 
Share of net profit of joint venture                                             25                                - 
-------------------------------------------         -------------------------------  ------------------------------- 
Loss before taxation                                                        (1,080)                            (486) 
 
Tax (expense)/income                           6                                (2)                               66 
-------------------------------------------         -------------------------------  ------------------------------- 
Loss for the period attributable to equity 
 holders of the parent                                                      (1,082)                            (420) 
-------------------------------------------         -------------------------------  ------------------------------- 
Loss per share: basic and diluted              7                             (6.6p)                           (2.5p) 
-------------------------------------------         -------------------------------  ------------------------------- 
 
 
 
 
Interim condensed consolidated statement of comprehensive income 
                                                    Half-year to 31st October, 2020  Half-year to 31st October, 2019 
                                                                          unaudited                        unaudited 
                                                                            GBP'000                          GBP'000 
 
Loss for the period attributable to equity 
 holders of the parent                                                      (1,082)                            (420) 
-------------------------------------------         -------------------------------  ------------------------------- 
Exchange differences on retranslation of 
 foreign operations                                                             219                               44 
-------------------------------------------         -------------------------------  ------------------------------- 
Net other comprehensive profit to be 
 reclassified to profit or loss in 
 subsequent periods                                                             219                               44 
-------------------------------------------         -------------------------------  ------------------------------- 
Remeasurement losses on defined benefit 
 pension scheme                                                               (642)                            (849) 
Deferred taxation on remeasurement of 
 defined benefit pension scheme                                                 122                              144 
Net other comprehensive loss not being 
 reclassified to profit or loss in 
 subsequent periods                                                           (520)                            (705) 
-------------------------------------------         -------------------------------  ------------------------------- 
Total comprehensive loss for the period 
 attributable to equity holders of the 
 parent                                                                     (1,383)                          (1,081) 
-------------------------------------------         -------------------------------  ------------------------------- 
 
 
 
 Interim condensed consolidated statement of financial position 
 
                              Notes           31st October, 2020        31st October, 2019   30th April, 2020 
                                                       unaudited                 unaudited            audited 
 ASSETS                                                  GBP'000                   GBP'000            GBP'000 
 Non-current assets 
 Intangible assets                                         4,070                     4,303              4,140 
 Property, plant and 
  equipment                     9                         19,484                    20,352             20,111 
 Right-of-use assets            10                           682                     1,185              1,214 
 Investment in joint                                          34                         -                  - 
 venture 
 Deferred income tax asset                                 2,015                     1,264              1,875 
--------------------------             -------------------------      --------------------  ----------------- 
                                                          26,285                    27,104             27,340 
--------------------------             -------------------------      --------------------  ----------------- 
 
 Current assets 
 Inventories                                              17,624                    14,689             15,857 
 Trade and other 
  receivables                                              6,957                     9,335              4,589 
 Income tax receivable                                       555                         3                719 
 Prepayments                                               2,397                     1,708              1,775 
 Cash and cash equivalents      11                        14,011                    19,370             16,125 
--------------------------             -------------------------      --------------------  ----------------- 
                                                          41,544                    45,105             39,065 
--------------------------             -------------------------      --------------------  ----------------- 
 TOTAL ASSETS                                             67,829                    72,209             66,405 
--------------------------             -------------------------      --------------------  ----------------- 
 
 EQUITY AND LIABILITIES 
 Equity 
 Share capital                                             1,840                     1,840              1,840 
 Capital redemption 
  reserve                                                    901                       901                901 
 Other reserve                                             2,815                     2,815              2,815 
 Revaluation reserve                                       6,055                     6,055              6,055 
 Special reserve                                           1,629                     1,629              1,629 
 Currency translation 
  reserve                                                    443                       323                224 
 Treasury shares                                         (3,059)                   (3,059)            (3,059) 
 Retained earnings                                        17,832                    23,140             19,723 
--------------------------             -------------------------      --------------------  ----------------- 
 TOTAL EQUITY 
  SHAREHOLDERS' FUNDS                                     28,456                    33,644             30,128 
--------------------------             -------------------------      --------------------  ----------------- 
 
 Non-current liabilities 
 Defined benefit pension 
  liability                     12                         9,075                     7,434              8,563 
 Deferred income tax 
  liability                                                1,600                     1,386              1,641 
 Lease liabilities                                           465                       942                893 
--------------------------             -------------------------      --------------------  ----------------- 
                                                          11,140                     9,762             11,097 
--------------------------             -------------------------      --------------------  ----------------- 
 
 Current liabilities 
 Trade and other payables                                 27,983                    27,747             24,679 
 Income tax payable                                           18                       806                165 
 Lease liabilities                                           232                       250                336 
--------------------------             -------------------------      --------------------  ----------------- 
                                                          28,233                    28,803             25,180 
--------------------------             -------------------------      --------------------  ----------------- 
 TOTAL EQUITY AND 
  LIABILITIES                                             67,829                    72,209             66,405 
--------------------------             -------------------------      --------------------  ----------------- 
 
 The interim condensed consolidated financial statements of the Group for the six months ended 
  31st October, 2020 were authorised for issue in accordance with a resolution of the directors 
  on 15th December, 2020 and signed on their behalf. 
 Michael O'Connell 
 Finance Director 
 
 
 
Interim consolidated statement of changes in equity 
 
                   Share     Capital    Other   Revaluation  Special     Currency  Treasury  Retained      Total 
                 capital  redemption  reserve       reserve  reserve  translation    shares  earnings  unaudited 
                             reserve                                      reserve 
                 GBP'000     GBP'000  GBP'000       GBP'000  GBP'000      GBP'000   GBP'000   GBP'000    GBP'000 
 
At 30th April, 
 2020              1,840         901    2,815         6,055    1,629          224   (3,059)    19,723     30,128 
Loss for the 
 period                -           -        -             -        -            -         -   (1,082)    (1,082) 
Other 
 comprehensive 
 income/(loss)         -           -        -             -        -          219         -     (520)      (301) 
Dividend paid 
 (note 8)              -           -        -             -        -            -         -     (289)      (289) 
At 31st 
 October, 2020     1,840         901    2,815         6,055    1,629          443   (3,059)    17,832     28,456 
---------------  -------  ----------  -------  ------------  -------  -----------  --------  --------  --------- 
 
 
                   Share     Capital    Other   Revaluation  Special     Currency  Treasury  Retained      Total 
                 capital  redemption  reserve       reserve  reserve  translation    shares  earnings  unaudited 
                             reserve                                      reserve 
                 GBP'000     GBP'000  GBP'000       GBP'000  GBP'000      GBP'000   GBP'000   GBP'000    GBP'000 
 
At 27th April, 
 2019              1,840         901    2,815         6,055    1,629          279   (3,059)    25,338     35,798 
Loss for the 
 period                -           -        -             -        -            -         -     (420)      (420) 
Other 
 comprehensive 
 income/(loss)         -           -        -             -        -           44         -     (705)      (661) 
Dividend paid          -           -        -             -        -            -         -   (1,073)    (1,073) 
At 31st 
 October, 2019     1,840         901    2,815         6,055    1,629          323   (3,059)    23,140     33,644 
---------------  -------  ----------  -------  ------------  -------  -----------  --------  --------  --------- 
 
 
 
                   Share     Capital    Other   Revaluation  Special     Currency  Treasury  Retained      Total 
                 capital  redemption  reserve       reserve  reserve  translation    shares  earnings    audited 
                             reserve                                      reserve 
                 GBP'000     GBP'000  GBP'000       GBP'000  GBP'000      GBP'000   GBP'000   GBP'000    GBP'000 
 
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) 
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 
                 -------  ----------  -------  ------------  -------  -----------  --------  --------  --------- 
 
 
 
 Interim consolidated cash flow statement 
                                                 Half-year to 31st October, 2020   Half-year to 31st October, 2019 
                                                                       unaudited                         unaudited 
                                                                         GBP'000                           GBP'000 
 
 Loss before taxation                                                    (1,080)                             (486) 
 Adjustments to reconcile loss before taxation 
 to net cash outflow from operating 
 activities: 
 Depreciation charge                                                         866                               782 
 Amortisation charge                                                         125                               332 
 Profit on disposal of fixed assets                                         (26)                              (61) 
 Share of net profit of joint venture                                       (25)                                 - 
 Net finance costs                                                           115                                84 
 Termination of lease                                                        (7)                                 - 
 Foreign exchange gains/(losses)                                             192                             (161) 
 Increase in inventories                                                 (1,690)                           (1,645) 
 Increase in receivables                                                 (2,315)                           (1,849) 
 (Increase)/decrease in prepayments                                        (620)                                93 
 Increase/(decrease) in payables                                           1,306                             (334) 
 Increase in progress payments                                             1,891                             2,105 
 Pension fund deficit reduction payments                                   (200)                             (300) 
----------------------------------------------  --------------------------------  -------------------------------- 
 Cash invested in operating activities                                   (1,468)                           (1,440) 
 Net interest (paid)/received                                               (25)                                14 
 Taxation paid                                                              (39)                             (126) 
----------------------------------------------  --------------------------------  -------------------------------- 
 Net cash outflow from operating activities                              (1,532)                           (1,552) 
 
 Investing activities 
 Purchase of property, plant and equipment                                 (152)                             (351) 
 Proceeds on disposal of property, plant and 
  equipment                                                                   27                                72 
 Payments for acquisitions, net of cash 
  acquired                                                                     -                             (748) 
 Net cash outflow from investing activities                                (125)                           (1,027) 
 
 Financing activities 
 Lease payments                                                            (191)                             (100) 
 Dividend paid                                                             (289)                           (1,073) 
 Net cash outflow from financing activities                                (480)                           (1,173) 
----------------------------------------------  --------------------------------  -------------------------------- 
 Decrease in cash and cash equivalents                                   (2,137)                           (3,752) 
 Opening cash and cash equivalents                                        16,125                            22,886 
 Exchange differences on cash and cash 
  equivalents                                                                 23                               236 
----------------------------------------------  --------------------------------  -------------------------------- 
 Closing cash and cash equivalents                                        14,011                            19,370 
----------------------------------------------  --------------------------------  -------------------------------- 
 
 
 
 Notes to the interim consolidated financial statements 
 
 1. Corporate information 
 
 MS INTERNATIONAL plc is a public limited company incorporated in England and Wales. The Company's 
  ordinary shares are traded on the AIM market of the London Stock Exchange. The principal activities 
  of the Company and its subsidiaries ("the Group") are the design, manufacture, construction, 
  and servicing of a range of engineering products and structures. These activities are grouped 
  into the following divisions: 
 
             'Defence' - design, manufacture, and service of defence equipment. 
 
             'Forging' - manufacture of fork-arms and open die forgings. 
 
             'Petrol Station Superstructures' - design, manufacture, construction, and maintenance of petrol 
              station superstructures. 
 
             'Corporate Branding' - design, manufacture, installation, and service of corporate brandings. 
 
 2. Basis of preparation and accounting policies 
 
 The consolidated condensed interim financial statements included in this half-yearly financial 
  report have been prepared in accordance with International Accounting Standard 34, "Interim 
  Financial Reporting", as adopted by the European Union. They do not include all the information 
  and disclosures required in annual financial statements in accordance with IFRS, and should 
  therefore be read in conjunction with the Group's Annual Report for the year ended 30th April, 
  2020 and any public announcements made by MS INTERNATIONAL plc during the interim reporting 
  period. 
 
 These interim financial statements do not constitute statutory financial statements within 
  the meaning of section 435 of the Companies Act 2006. The figures for the year ended 30th 
  April, 2020 do not constitute the Group's statutory accounts for the period but have been 
  extracted from the statutory accounts. The auditor's report on those accounts, which have 
  been filed with the Registrar of Companies, was unqualified and did not contain any statement 
  under section 498 (2) or (3) of the Companies Act 2006. 
 
 The interim financial information has been reviewed but not audited by the Group's auditor, 
  Grant Thornton UK LLP. Their report is included on page 4. 
 
 The accounting policies are consistent with those applied in the financial statements of the 
  Annual Report for year ended 30th April, 2020. The Group has not early adopted any standard, 
  interpretation, or amendment that has been issued but is not yet effective. 
 
 As at the reporting date, the assets and liabilities of the overseas subsidiaries are translated 
  into the presentation currency of the Group at the rate of exchange ruling at the balance 
  sheet date and their income statements are translated at the weighted average exchange rates 
  for the year. The exchange differences arising on the retranslation are taken directly to 
  a separate component of equity. 
 
 3. Principal risks and uncertainties 
 
 The principal risks and uncertainties facing the Group for the remaining six months of the 
  financial year are discussed below. Further details of the Group's risks and uncertainties 
  can be found on page 7 of the Annual Report for the year ended 30th April, 2020 available 
  from MS INTERNATIONAL plc's website: www.msiplc.com. 
 
 One of the Group's principal risk and uncertainties continues to be the level of customer 
  demand for the Group's products and services. Customer demand is driven mainly by general 
  economic conditions in addition to pricing, product quality, and delivery performance of the 
  Group in comparison to our competitors. 
 
 There continues to be considerable uncertainty in relation to the UK's future trading relationship 
  with the EU. At the time of preparing these interim financial statements, the disclosure given 
  in the Annual Report is still applicable and reflects the best understanding of how the withdrawal 
  from the EU will impact the Group. The Board are monitoring the impact of how changes in the 
  UK's trading relationship with the EU will affect the different parts of the Group and preparations 
  have been made to take appropriate action if, and when, required. 
 
 The current environment brought about by Covid-19 creates uncertainty over the phasing of 
  demand from customers, the financial impact of any future lockdowns in the geographical areas 
  in which the Group operates, and other possible difficulties in the general economic environment. 
  Given that the Group has plans in place to manage foreseeable challenges of the Covid crisis, 
  healthy financial resources, and a number of long-term contracts with certain customers, the 
  directors believe the Group is well placed to manage its business risk successfully despite 
  the current economic outlook. Accordingly, the directors continue to conclude that the adoption 
  of the going concern basis of accounting remains appropriate when preparing these interim 
  financial statements. 
 
 4. Going concern 
 
 In making the going concern assessment, as well as considering general risks and specifically 
  the risks presented by Covid-19, the directors have considered the period to 12 months from 
  the approval of the financial statements. 
 
 
 5. Segment 
 information 
 
(a) Primary reporting format - 
divisional segments 
 
The following table presents revenue and profit information about the Group's divisions for 
 the half-year periods ended 31st October, 2020 and 31st October, 2019. 
 
                       'Defence'         'Forgings'      'Petrol Station       'Corporate            Total 
                                                         Superstructures'      Branding' 
                       2020     2019     2020     2019      2020      2019     2020     2019       2020       2019 
                                                                                              unaudited  unaudited 
                    GBP'000  GBP'000  GBP'000  GBP'000   GBP'000   GBP'000  GBP'000  GBP'000    GBP'000    GBP'000 
 
Revenue 
From external 
 customers            8,641   12,054    4,577    7,263     6,640     7,277    6,484    6,723     26,342     33,317 
From other 
 segments                 -        -        -        -        51       145       66       95        117        240 
------------------  -------  -------  -------  -------  --------  --------  -------  -------  ---------  --------- 
Segment revenue       8,641   12,054    4,577    7,263     6,691     7,422    6,550    6,818     26,459     33,557 
------------------  -------  -------  -------  -------  --------  --------  -------  -------  ---------  --------- 
Segment result      (1,267)       42    (279)       54       835       291    (279)    (789)      (990)      (402) 
Net finance 
 expense                                                                                          (115)       (84) 
Share of net 
 profit of joint 
 venture                                                                                             25          - 
------------------                                                                            ---------  --------- 
Loss before 
 taxation                                                                                       (1,080)      (486) 
Tax 
 (expense)/income                                                                                   (2)         66 
------------------                                                                            ---------  --------- 
Loss for the 
 period                                                                                         (1,082)      (420) 
------------------                                                                            ---------  --------- 
Capital 
 expenditure             81       12        -        -        59       171       12      168        152        351 
Depreciation            133      112      278      327       178       171      277      172        866        782 
------------------  -------  -------  -------  -------  --------  --------  -------  -------  ---------  --------- 
 
The following table presents segment assets and liabilities of the Group's divisions for the 
 half-year periods ended 31st October, 2020 and 31st October, 2019. 
 
Segmental assets     27,984   29,444    3,497    8,627    10,154    10,552    9,919   10,018     51,554     58,641 
Unallocated assets                                                                               16,275     13,568 
------------------                                                                            ---------  --------- 
Total assets                                                                                     67,829     72,209 
------------------                                                                            ---------  --------- 
Segmental 
 liabilities         18,747   19,402    1,774    2,014     3,349     3,531    4,062    4,024     27,932     28,971 
Unallocated 
 liabilities                                                                                     11,441      9,594 
------------------                                                                            ---------  --------- 
Total liabilities                                                                                39,373     38,565 
------------------  -------  -------  -------  -------  --------  --------  -------  -------  ---------  --------- 
 
Unallocated assets include certain fixed assets (including all UK properties), intangible 
 assets, current assets, and deferred income tax assets. Unallocated liabilities include the 
 defined benefit pension scheme liability, the deferred income tax liability, and certain current 
 liabilities. 
 
 
 
  6. Tax expense 
 
The major components of the tax expense/(income) in the consolidated income 
statement are: 
                                                Half-year to 31st October, 2020  Half-year to 31st October, 2019 
                                                                      unaudited                        unaudited 
                                                                        GBP'000                          GBP'000 
 
Current tax expense                                                          67                               79 
Deferred tax income                                                        (65)                            (145) 
---------------------------------------   -------------------------------------  ------------------------------- 
Total tax expense/(income) reported in 
 the consolidated income statement                                            2                             (66) 
---------------------------------------   -------------------------------------  ------------------------------- 
 
A change to the main UK corporation tax rate was enacted in a budget resolution on 17th March, 
 2020. From 1 April, 2020 the rate remains at 19%, cancelling the previously enacted rate reduction 
 to 17%. Deferred income tax at 30th April, 2020 has therefore been provided at 19%. Deferred 
 income 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. 
 
7. Earnings per share 
 
The calculation of basic earnings per 
share is based on: 
 
                                        Loss for the period attributable to 
                                        equity holders of the parent of 
                                        GBP1,082,000 (2019 - GBP420,000 
(a)                                     loss); 
 
                                        16,504,691 (2019 - 16,504,691) ordinary 
                                        shares, being the weighted average 
                                        number of ordinary 
(b)                                     shares in issue. 
 
This represents 18,396,073 (2019 - 18,396,073), being the weighted average number of ordinary 
 shares in issue less 245,048 (2019 - 245,048), being the number of shares held within the 
 ESOT and less 1,646,334 (2019 - 1,646,334), being the number of shares purchased by the Company. 
 
There are no dilutive instruments in place. 
 
8. Dividends paid and proposed 
                                                Half-year to 31st October, 2020  Half-year to 31st October, 2019 
                                                                      unaudited                        unaudited 
                                                                        GBP'000                          GBP'000 
Declared and paid during the six month 
period 
Final dividend on ordinary shares for 
 2020 - 1.75p (2019 - 6.50p)                                                289                            1,073 
---------------------------------------   -------------------------------------  ------------------------------- 
Proposed for approval 
Interim dividend on ordinary shares for 
 2021 - 1.75p (2020 - 1.75p)                                                289                              289 
---------------------------------------   -------------------------------------  ------------------------------- 
 
Dividend warrants will be posted on 18th January, 2021 to those members registered on the 
 books of the Company on 29th December, 2020. 
 
 
 9. Property, plant and equipment 
 
 At 31st October, 2020 
                                          Freehold   Plant and 
                                          property   equipment     Total 
                                           GBP'000     GBP'000   GBP'000 
 Cost or valuation 
 At 30th April, 2020                        17,746      15,858    33,604 
 Additions                                       -         152       152 
 Disposals                                       -       (364)     (364) 
 Exchange differences                         (98)           1      (97) 
---------------------------------------  ---------  ----------  -------- 
 At 31st October, 2020                      17,648      15,647    33,295 
---------------------------------------  ---------  ----------  -------- 
 
 Accumulated depreciation 
 At 30th April, 2020                           970      12,523    13,493 
 Depreciation charge for the period            158         530       688 
 Disposals                                       -       (363)     (363) 
 Exchange differences                          (6)         (1)       (7) 
---------------------------------------  ---------  ----------  -------- 
 At 31st October, 2020                       1,122      12,689    13,811 
---------------------------------------  ---------  ----------  -------- 
 Net book value at 31st October, 2020       16,526       2,958    19,484 
---------------------------------------  ---------  ----------  -------- 
 
 Analysis of cost or valuation 
 At professional valuation 2018             12,300           -    12,300 
 At cost                                     5,348      15,647    20,995 
---------------------------------------  ---------  ----------  -------- 
 At 31st October, 2020                      17,648      15,647    33,295 
---------------------------------------  ---------  ----------  -------- 
 
 At 31st October, 2019 
                                          Freehold   Plant and 
                                          property   equipment     Total 
                                           GBP'000     GBP'000   GBP'000 
 Cost or valuation 
 At 27th April, 2019                        17,706      15,585    33,291 
 Additions                                       -         351       351 
 Disposals                                       -       (437)     (437) 
 Acquisition                                     -         274       274 
 Exchange differences                            3        (10)       (7) 
 At 31st October, 2019                      17,709      15,763    33,472 
---------------------------------------  ---------  ----------  -------- 
 
 Accumulated depreciation 
 At 27th April, 2019                           662      12,203    12,865 
 Depreciation charge for the period            160         531       691 
 Disposals                                       -       (426)     (426) 
 Exchange differences                          (1)         (9)      (10) 
---------------------------------------  ---------  ----------  -------- 
 At 31st October, 2019                         821      12,299    13,120 
                                         ---------  ----------  -------- 
 Net book value at 31st October, 2019       16,888       3,464    20,352 
---------------------------------------  ---------  ----------  -------- 
 
 Analysis of cost or valuation 
 At professional valuation 2018             12,300           -    12,300 
 At cost                                     5,409      15,763    21,172 
---------------------------------------  ---------  ----------  -------- 
 At 31st October, 2019                      17,709      15,763    33,472 
---------------------------------------  ---------  ----------  -------- 
 
 
 
 At 30th April, 2020 
                                                                    Freehold         Plant and 
                                                                    property         equipment          Total 
                                                                     GBP'000           GBP'000        GBP'000 
 Cost or valuation 
 At 27th April, 2019                                                  17,706            15,585         33,291 
 Additions                                                                 -               721            721 
 Disposals                                                                 -             (736)          (736) 
 Acquisition                                                               -               351            351 
 Exchange differences                                                     40              (63)           (23) 
------------------------------------------------------------  --------------  ----------------  ------------- 
 At 30th April, 2020                                                  17,746            15,858         33,604 
------------------------------------------------------------  --------------  ----------------  ------------- 
 
 Accumulated depreciation 
 At 27th April, 2019                                                     662            12,203         12,865 
 Depreciation charge for the period                                      316             1,107          1,423 
 Disposals                                                                 -             (712)          (712) 
 Exchange differences                                                    (8)              (75)           (83) 
------------------------------------------------------------  --------------  ----------------  ------------- 
 At 30th April, 2020                                                     970            12,523         13,493 
------------------------------------------------------------  --------------  ----------------  ------------- 
 Net book value at 30th April, 2020                                   16,776             3,335         20,111 
------------------------------------------------------------  --------------  ----------------  ------------- 
 
 Analysis of cost or valuation 
 At professional valuation 2018                                       12,300                 -         12,300 
 At cost                                                               5,446            15,858         21,304 
------------------------------------------------------------  --------------  ----------------  ------------- 
 At 30th April, 2020                                                  17,746            15,858         33,604 
------------------------------------------------------------  --------------  ----------------  ------------- 
 
 On 11th November, 2017, 26th July, 2017 and 28th March, 2018 the Group's land and buildings, 
  which consist of manufacturing and office facilities in the UK, Poland and USA were valued 
  by Dove Haigh Phillips (UK), KonSolid-Nieruchomosci (Poland) and Real Estate & Appraisal Services 
  Inc (USA). Management determined that these constitute one class of asset under IFRS 13 (designated 
  as level 3 fair value assets), based on the nature, characteristics and risks of the properties. 
 
 The properties in the UK were valued on the basis of an existing use value in accordance with 
  the Appraisal and Valuation Standards (5th Edition) published by the Royal Institution of 
  Chartered Surveyors. The Polish property was valued based on the income approach, converting 
  anticipated future benefits in the form of rental income into present value. Finally, the 
  US property was valued on an income and market value basis. For all properties, there is no 
  difference between current use and highest and best use. 
 
 The valuation of the properties in the UK has been processed in the financial statements. 
  Both the Polish and the US property valuations were sufficiently close to their carrying value 
  such that the valuations were not processed. 
 
 
 10. Right-of-use assets 
 
 At 31st October, 2020                                                      Plant and 
                                                        Property            equipment              Total 
                                                         GBP'000              GBP'000            GBP'000 
 
 Cost or valuation 
 At 30th April, 2020                                       1,403                   50              1,453 
 Additions                                                     -                    -                  - 
 Lease amendment                                           (390)                    -              (390) 
 Exchange differences                                         38                    -                 38 
------------------------------------------  --------------------  -------------------  ----------------- 
 At 31st October, 2020                                     1,051                   50              1,101 
------------------------------------------  --------------------  -------------------  ----------------- 
 
 Accumulated depreciation 
 At 30th April, 2020                                         219                   20                239 
 Depreciation charge for the period                          168                   10                178 
 Exchange differences                                          2                    -                  2 
------------------------------------------  --------------------  -------------------  ----------------- 
 At 31st October, 2020                                       389                   30                419 
------------------------------------------  --------------------  -------------------  ----------------- 
 Net book value at 31st October, 2020                        662                   20                682 
------------------------------------------  --------------------  -------------------  ----------------- 
 
 
 At 31st October, 2019                                                      Plant and 
                                                        Property            equipment              Total 
                                                         GBP'000              GBP'000            GBP'000 
 
 Cost or valuation 
 At 27th April, 2019                                           -                    -                  - 
 IFRS 16 adjustment                                          755                   26                781 
 Acquisition of subsidiary                                   501                    -                501 
 Exchange differences                                        (8)                    -                (8) 
------------------------------------------  --------------------  -------------------  ----------------- 
 At 31st October, 2019                                     1,248                   26              1,274 
------------------------------------------  --------------------  -------------------  ----------------- 
 
 Accumulated depreciation 
 At 27th April, 2019                                           -                    -                  - 
 Depreciation charge for the period                           84                    7                 91 
 Exchange differences                                        (2)                    -                (2) 
------------------------------------------  --------------------  -------------------  ----------------- 
 At 31st October, 2019                                        82                    7                 89 
------------------------------------------  --------------------  -------------------  ----------------- 
 Net book value at 31st October, 2019                      1,166                   19              1,185 
------------------------------------------  --------------------  -------------------  ----------------- 
 
 At 30th April, 2020                                                        Plant and 
                                                        Property            equipment              Total 
                                                         GBP'000              GBP'000            GBP'000 
 
 Cost or valuation 
 At 27th April, 2019                                           -                    -                  - 
 IFRS 16 adjustment                                          755                   26                781 
 Additions                                                   162                   24                186 
 Acquisition of subsidiary                                   501                    -                501 
 Exchange differences                                       (15)                    -               (15) 
------------------------------------------  --------------------  -------------------  ----------------- 
 At 30th April, 2020                                       1,403                   50              1,453 
------------------------------------------  --------------------  -------------------  ----------------- 
 
 
 Accumulated depreciation 
 At 27th April, 2019                                           -                    -                  - 
 Depreciation charge for the period                          228                   20                248 
 Exchange differences                                        (9)                    -                (9) 
------------------------------------------  --------------------  -------------------  ----------------- 
 At 30th April, 2020                                         219                   20                239 
------------------------------------------  --------------------  -------------------  ----------------- 
 Net book value at 30th April, 2020                        1,184                   30              1,214 
------------------------------------------  --------------------  -------------------  ----------------- 
 
 
 11. Cash and cash equivalents 
 
 For the purpose of the interim consolidated cash flow statement, cash and cash equivalents 
  are comprised of the following: 
 
                                              31st October, 2020   31st October, 2019   20th April, 2020 
                                                       unaudited            unaudited            audited 
                                                         GBP'000              GBP'000            GBP'000 
 Cash at bank and in hand                                  7,457               13,955             16,125 
 Escrow account                                            6,554                    -                  - 
 Short term deposits                                           -                5,415                  - 
                                                          14,011               19,370             16,125 
                                            --------------------  -------------------  ----------------- 
 
 The balance held in Escrow provides security to Lloyds Bank plc in respect of any guarantees, 
  indemnities, and bond guarantees given by the group in the ordinary course of business. 
 
 
 12. Pension liability 
 
 The Company operates an employee pension scheme called the MS INTERNATIONAL plc Retirement 
  and Death Benefits Scheme ("the Scheme"). IAS 19 requires disclosure of certain information 
  about the Scheme as follows: 
 
 -                                                      Until 5th April, 1997, the Scheme provided defined benefits 
                                                        and these liabilities remain in 
                                                        respect of service prior to 6th April, 1997. From 6th April, 
                                                        1997 until 31st May, 2007 the 
                                                        Scheme provided future service benefits on a defined 
                                                        contribution basis. 
 
 -                                                      The last formal valuation of the Scheme was performed at 5th 
                                                        April, 2017 by a professionally 
                                                        qualified actuary. 
 
 -                                                      From 6th April, 2016 the Company directly pays the expenses of 
                                                        the Scheme. With effect from 
                                                        April, 2018 the deficit reduction payments paid into the 
                                                        Scheme by the Company increased to 
                                                        GBP600,000 per annum. The deficit reduction contributions are 
                                                        paid on a quarterly basis with 
                                                        the first paid on 3rd April, 2018 and the last due for payment 
                                                        on or before 5th January, 2027. 
                                                        On 23rd April, 2020 it was agreed that contributions be made 
                                                        on a monthly basis from July 
                                                        2020 to December 2020, after which contributions will revert 
                                                        to a quarterly basis. 
 
 -                                                      From 1st June, 2007 the Company has operated a defined 
                                                        contribution scheme for its UK employees 
                                                        which is administered by a UK pension provider. Member 
                                                        contributions are paid in line with 
                                                        this Scheme's documentation over the accounting period and the 
                                                        Company has no further obligations 
                                                        once the contributions have been made. 
 
 -                                                      During the period, the Scheme liability has increased by 
                                                        GBP512,000. A re-measurement loss 
                                                        of GBP642,000 (2019 - GBP849,000 loss) has been recognised 
                                                        through other comprehensive income. 
                                                        It comprises of a GBP484,000 remeasurement gain compared to 
                                                        the interest income on the plan 
                                                        assets and a GBP1,126,000 actuarial loss due to changes in 
                                                        financial assumptions. The actuarial 
                                                        loss of GBP1,126,000 is primarily a result of an increase in 
                                                        CPI/RPI inflation as well as 
                                                        a lower discount rate at the period end, both of which 
                                                        increased the Scheme's liabilities 
                                                        at 31st October, 2020. The interest cost on the net defined 
                                                        benefit liability of GBP70,000 
                                                        has been recognised through the income statement. The Scheme's 
                                                        liabilities have been reduced 
                                                        by pension fund deficit payments in the period of GBP200,000 
                                                        (2019 - GBP300,000). 
 
 -                                                      A GBP1,198,000 liability for unrecognised past service cost 
                                                        relating to GMP equalisation cost 
                                                        was recognised in the Consolidated income statement for the 52 
                                                        weeks ended 27th April, 2019. 
                                                        This liability has been remeasured and is included in the 
                                                        Scheme's liabilities at 31st October, 
                                                        2020. 
 
 -                                                      It may be some time before an agreed method for GMP 
                                                        calculations is approved. However, now 
                                                        that the estimated past service cost has been recognised in 
                                                        the Consolidated income statement 
                                                        for the year ended 27th April, 2019, further future changes to 
                                                        the estimate will be recognised 
                                                        in the Consolidated statement of comprehensive income. 
 
 13. Commitments and contingencies 
 
 The Company is contingently liable in respect of guarantees, indemnities and performance bonds 
  given in the ordinary course of business amounting to GBP6,976,530 at 31st October, 2020 (2019 
  - GBP4,637,538). 
 
 In the opinion of the Directors, no material loss will arise in connection with the above 
  matters. 
 
 The Group and certain of its subsidiary undertakings are parties to legal actions and claims 
  which have arisen in the normal course of business. The results of actions and claims cannot 
  be forecast with certainty, but the directors believe that they will be concluded without 
  any material effect on the net assets of the Group. 
 
 

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