TIDMMSI

RNS Number : 6169C

MS International PLC

22 June 2021

Chairman's Statement

Results and Review

It is both pleasing and reassuring to report that for the year ended 30th April 2021, the Company returned to profits with a pre-tax figure of GBP1.59m (2020 - loss GBP3.25m) on revenue of GBP61.54m (2020 - GBP61.15m). Basic earnings per share amounted to 7.2p, (2020 - loss per share of 15.1p). The balance sheet has strengthened, with total cash increased to GBP23.56m (2020 - GBP16.30m).

Exceptionally good progress has been made across the Group, despite the negative and distracting influence of the global pandemic. Furthermore, the outlook is now much brighter than we could have imagined twelve months ago. We have lost neither skills, nor potential market opportunities and are now starting to benefit from the numerous ambitious development projects and investment programmes that we have been diligently progressing over the past few years.

'Defence'

We continued to stay abreast of our obligations to our many international defence business customers, completing sales of new weapon installations, whilst fully supporting and servicing customers around the world, including twelve individual navies. International marketing activity was, by enforced necessity, sadly restrained. The home market with the UK MoD remains, disappointingly subdued.

Pleasingly, a request from the US Navy, that we field our 'state of the art' 30mm MSI-DS naval weapon system for an evaluation trials programme resulted in a highly positive outcome. We have since been awarded a contract for the supply of seven systems, the first of which has now been delivered directly to the US Navy. We are hopeful that these sales may well lead to follow on production orders. In addition, following the award of that contract, we received an order from a US shipbuilder to supply eight similar weapon systems for a US government Foreign Military Sales Programme.

This important break-through in the United States defence market, is a direct result of our persistent and purposeful marketing effort within the US over many years and our relentless, and crucially important, investment in product development programmes for the world markets.

'Forgings'

This division started the period in a relatively weak business environment, centred around a Brexit settlement and the overhanging potential loss or reduction in fork-arm requirements from our many EU based customers; then Covid hit! The uncertainties were not helped by the growing deterioration in the availability and supply of raw materials and components and their increasing costs. Not only were our own requirements affected but also those of our customers' other material requirements.

Market conditions only started to improve in early 2021, after many of our existing and potential customers reverting to a 'buy-local' philosophy, rather than continuing to buy 'economic dumped' product from China, where reliability of supply had seriously deteriorated. This positive trend for us, when added to our earlier restructuring of our UK operations, at last brought some positive economic sanity into the international markets we serve through our indigenous fork-arm manufacturing plants in the UK, plus North and South America.

'Petrol Station Superstructures'

Despite a much slowed 'pandemic induced' start to the period in the UK, once HM Government determined that petrol stations in England were deemed an essential operation and could remain open, there was a notable upturn in our business activity. Throughout the lockdowns, many of our UK customers, particularly those operating stations that included a quality convenience store and, in some cases, a food outlet, traded well, even though it is reported that fuel sales dropped by 70% at the height of the restrictions. As travel restrictions were eased, so the need for structural maintenance and new builds gained momentum and there was a pleasing marked restoration in our UK activities.

Unfortunately, there was not a similar freedom of movement across mainland Europe and consequently our operation in Poland - which traditionally services customers from Scandinavia and across Eastern Europe - had a much reduced, activity level throughout the period.

Notwithstanding the challenges, the division, led by the UK operation, achieved a marked improvement in profitability over that reported in the prior year.

'Corporate Branding'

This division, which operates primarily across western European through operations based in The Netherlands and Germany, experienced a ten per cent reduction in activity compared to the previous year, owing to local and cross border travel restrictions and vigorously enforced lockdowns across the EU. Consequently, revenue was some 30% lower than anticipated. Across the sectors we serve, petrol, hospitality, airports and automotive, people movement was intensely restricted and as a consequence many of our customers' development programmes were simply put on an 'extended hold'.

By contrast, our UK 'Petrol Sign' business has continued to grow and prosper, responding in line with the more positive approach taken by the UK forecourt market highlighted in my comments on 'Petrol Station Superstructures'.

Outlook

'Defence'

Our recent positive breakthrough into the western world's largest defence market is truly most encouraging and we will do our utmost to progress the many perceived opportunities that are out there. Our other product developments, aimed at opening up new global markets, are progressing to plan and once international travel arrangements can recommence this will enable the business to exploit a number of perceived and very promising opportunities.

Simultaneously, we are upgrading the capabilities of our existing UK manufacturing facilities and systems, to enhance further our production capabilities to meet anticipated future demand.

'Forgings'

With our highly efficient 'local' manufacturing operations in the UK, the United States and Brazil, we are well placed to take advantage of the growing ecological and economic pressures regarding minimising long distance shipping of products around the globe.

'Petrol Station Superstructures'

The UK petrol station market has recovered strongly and very positively from the initial lock-down pressures of the pandemic.

There continues to be a notable, and very positive change, in the structure of petrol station ownership in the UK. The long-established ownership of stations by the large international oil companies is diminishing and passing to that of that a small number of privately owned, well- funded, entrepreneurial groups. Consequently, there is considerable investment taking place to enhance their station operations, creating what is being termed 'mobility hubs,' that will offer, not only a wide variety of fuel options, but also high quality and spacious convenience stores; fast-food outlets; rest areas and internet amenities plus superior car valeting facilities.

With our Group's extensive experience and high reputation in the construction, maintenance and, most recently, the branding of petrol stations, we aim to continue to provide a superior, high quality service to these relatively new, and progressively minded, groups.

Our Poland based business, that enjoys an outstanding reputation for performance amongst the many customers it regularly serves in numerous countries, is well positioned to respond once inter country travel restraints are lifted and there is a restoration of business normality.

'Corporate Branding'

This division has still to contend with the present ongoing operational restraints on travel across international borders, necessitated by the pandemic.

In the meantime, we have reorganised and integrated the operations of this division to reflect the wider product and market sectors it serves. Not only have we considerably reduced costs, but it is now better focused on meeting the expectations of a broader customer market than just 'petrol', which had previously been the prime focus when we acquired the 'Petrol Sign BV' business in 2015.

In concluding, I thank all our employees for their support and commitment to the business in what has clearly been a most disruptive and frustrating business year for everyone.

Our thanks also to HM Government and to those Governments, in countries where we have operating businesses, for their 'Covid-19' support in what has been an unprecedented time.

Our commitment to moving the business forward remains at the forefront of our objectives after 15 months of continuous global restrictions. We remain resilient and dedicated, along with a great team of people and are well placed to achieving our aim. Most importantly, we also enjoy further enhanced strong financial resources to support and develop opportunities as they arise.

All matters considered the Board recommends the payment of a reinstated final dividend of 6.5p per share (2020 - 1.75p) making a total for the year of 8.25p (2020 - 3.5p). The final dividend is expected to be paid on the 10th August 2021, to those shareholders on the register at the close of business on 16th July 2021.

Michael Bell

21(st) June 2021

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

Copies of this announcement are available from the Company's registered office at MS 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 on 6(th) July, 2021, 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 29(th) July 2021 at The Holiday Inn, Warmsworth, Doncaster.

 
 Consolidated income statement 
 For the year ended 30th April, 2021 
                                                                                               2021       2020 
 Continuing operations                                                                        Total      Total 
                                                                                            GBP'000    GBP'000 
 
 Revenue                                                                                     61,539     61,153 
 Cost of sales                                                                             (44,218)   (48,275) 
----------------------------------------------------------------------------------------  ---------  --------- 
 Gross profit                                                                                17,321     12,878 
 
 Distribution costs                                                                         (2,581)    (3,455) 
 Administrative expenses                                                                   (12,954)   (12,542) 
---------------------------------------------------------------------------------------- 
 
                                                                                           (15,535)   (15,997) 
                                                                                          ---------  --------- 
 Group operating profit/(loss)                                                                1,786    (3,119) 
 
 Share of net profit of joint venture                                                            28          - 
                                                                                                     --------- 
 Interest received                                                                               10        133 
 Interest paid                                                                                 (92)      (103) 
 Other finance costs - pensions                                                               (140)      (164) 
                                                                                          --------- 
                                                                                              (222)      (134) 
                                                                                          ---------  --------- 
 Profit/(loss) before taxation                                                                1,592    (3,253) 
 Taxation                                                                                     (415)        762 
----------------------------------------------------------------------------------------  ---------  --------- 
 Profit/(loss) for the year attributable to equity holders of the parent                      1,177    (2,491) 
----------------------------------------------------------------------------------------  ---------  --------- 
 
 Basic earnings/(loss) per share                                                               7.2p    (15.1p) 
 Diluted earnings/(loss) per share                                                             7.0p    (15.1p) 
 
 
 Consolidated statement of comprehensive income 
 For the year ended 30th April, 2021 
 
                                                                                               2021       2020 
                                                                                              Total      Total 
                                                                                            GBP'000    GBP'000 
 
 Profit/(loss) for the year attributable to equity holders of the parent                      1,177    (2,491) 
 Exchange differences on retranslation of foreign operations                                   (38)       (55) 
----------------------------------------------------------------------------------------  ---------  --------- 
 Net other comprehensive loss to be reclassified to profit or loss in subsequent years         (38)       (55) 
---------------------------------------------------------------------------------------   ---------  --------- 
 Remeasurement gains/(losses) on defined benefit pension scheme                               1,213    (2,197) 
 Deferred tax on remeasurement on defined benefit scheme                                      (230)        545 
 Deferred tax on revaluation surplus on land and buildings                                        -      (110) 
 Net other comprehensive income/(loss) not being reclassified to profit or loss in 
  subsequent 
  years                                                                                         983    (1,762) 
---------------------------------------------------------------------------------------   ---------  --------- 
 
 Total comprehensive income/(loss) for the year attributable to equity holders of the 
  parent                                                                                      2,122    (4,308) 
---------------------------------------------------------------------------------------   ---------  --------- 
 
 
Consolidated and company statement of changes in equity 
For the year ended 30th April, 2021 
                    Share     Capital     Other  Revaluation  Special     Currency  Treasury  Retained          Total 
                  capital  redemption  reserves      reserve  reserve  translation    shares  earnings  shareholders' 
                              reserve                                      reserve                              funds 
                  GBP'000     GBP'000   GBP'000      GBP'000  GBP'000      GBP'000   GBP'000   GBP'000        GBP'000 
 
(a) Group 
At 27th April, 
 2019               1,840         901     2,815        6,055    1,629          279   (3,059)    25,338         35,798 
Loss for the 
 year                   -           -         -            -        -            -         -   (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 
--------------- 
Profit for the 
 year                   -           -         -            -        -            -         -     1,177          1,177 
Other 
 comprehensive 
 (loss)/income          -           -         -            -        -         (38)         -       983            945 
                  -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
Total 
 comprehensive 
 (loss)/income          -           -         -            -        -         (38)         -     2,160          2,122 
Dividends paid          -           -         -            -        -            -         -     (578)          (578) 
Purchase of own 
 shares                 -           -         -            -        -            -     (636)         -          (636) 
Cancellation of 
 shares              (56)          56         -            -        -            -       906     (906)              - 
--------------- 
At 30th April, 
 2021               1,784         957     2,815        6,055    1,629          186   (2,789)    20,399         31,036 
---------------   -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
(b) Company 
At 27th April, 
 2019               1,840         901     7,620            -    1,629            -   (3,059)    17,222         26,153 
Profit for the 
 year                   -           -         -            -        -            -         -     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 
Profit for the 
 year                   -           -         -            -        -            -         -     1,548          1,548 
Other 
 comprehensive 
 income                 -           -         -            -        -            -         -       899            899 
                  -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
Total 
 comprehensive 
 income                 -           -         -            -        -            -         -     2,447          2,447 
Dividends paid          -           -         -            -        -            -         -     (578)          (578) 
Purchase of own 
 shares                 -           -         -            -        -            -     (636)         -          (636) 
Cancellation of 
 shares              (56)          56         -            -        -            -       906     (906)              - 
--------------- 
At 30th April, 
 2021               1,784         957     7,620            -    1,629            -   (2,789)    16,581         25,782 
---------------   -------  ----------  --------  -----------  -------  -----------  --------  --------  ------------- 
 
 
 Consolidated and company statements of financial position 
 At 30th April, 2021 
                                             Group              Company 
                                          2021      2020      2021      2020 
                                       GBP'000   GBP'000   GBP'000   GBP'000 
 ASSETS 
 Non-current assets 
 Property, plant, and equipment         19,113    20,111       935     1,121 
 Right-of-use assets                       530     1,214     5,486     5,943 
 Intangible assets                       3,558     4,140         -         - 
 Investments in subsidiaries                 -         -    17,313    18,036 
 Investment in joint venture                36         -         -         - 
 Deferred income tax asset               1,606     1,875     1,600     1,875 
------------------------------------  --------  --------  -------- 
                                        24,843    27,340    25,334    26,975 
                                      --------  --------  --------  -------- 
 Current assets 
 Inventories                            12,423    15,857     1,498     1,543 
 Trade and other receivables             9,369     4,589    16,135    15,433 
 Contract assets                         1,998         -         -         - 
 Income tax receivable                     194       719       141       139 
 Prepayments                             2,010     1,775       543       296 
 Cash and cash equivalents              17,390    16,125       943         - 
 Restricted cash held in Escrow          6,165         -         -         - 
-----------------------------------   --------  --------  -------- 
                                        49,549    39,065    19,260    17,411 
                                      --------  --------  --------  -------- 
 
 TOTAL ASSETS                           74,392    66,405    44,594    44,386 
------------------------------------  --------  --------  --------  -------- 
 
 EQUITY AND LIABILITIES 
 Equity 
 Share capital                           1,784     1,840     1,784     1,840 
 Capital redemption reserve                957       901       957       901 
 Other reserves                          2,815     2,815     7,620     7,620 
 Revaluation reserve                     6,055     6,055         -         - 
 Special reserve                         1,629     1,629     1,629     1,629 
 Currency translation reserve              186       224         -         - 
 Treasury shares                       (2,789)   (3,059)   (2,789)   (3,059) 
 Retained earnings                      20,399    19,723    16,581    15,618 
------------------------------------  --------  --------  --------  -------- 
 TOTAL EQUITY SHAREHOLDERS' FUNDS       31,036    30,128    25,782    24,549 
------------------------------------  --------  --------  --------  -------- 
 Non-current liabilities 
 Defined benefit pension liability       7,095     8,563     7,095     8,563 
 Deferred income tax liability           1,553     1,641         -         - 
 Lease liabilities                         380       893     5,214     5,609 
------------------------------------  --------  --------  --------  -------- 
                                         9,028    11,097    12,309    14,172 
                                      --------  --------  --------  -------- 
 Current liabilities 
 Bank overdraft                              -         -         -       391 
 Trade and other payables               12,410    11,309     5,234     3,854 
 Contract liabilities                   21,192    13,370       874     1,037 
 Income tax payable                        561       165         -         - 
 Lease liabilities                         165       336       395       383 
------------------------------------  --------  --------  --------  -------- 
                                        34,328    25,180     6,503     5,665 
                                      --------  --------  --------  -------- 
 
 TOTAL EQUITY AND LIABILITIES           74,392    66,405    44,594    44,386 
------------------------------------  --------  --------  --------  -------- 
 
 
 Consolidated and company cash flow statements 
 For the year ended 30th April, 2021 
                                                                               Group              Company 
                                                                            2021      2020      2021      2020 
                                                                         GBP'000   GBP'000   GBP'000   GBP'000 
 
 Profit/(loss) before taxation                                             1,592   (3,253)        92   (1,216) 
 Adjustments to reconcile profit before taxation to net cash 
 inflow/(outflow) from operating 
 activities 
 Past service pension costs                                                  205         -       205         - 
 Depreciation charge of owned assets and right-of-use assets               1,666     1,671       895     1,001 
 Amortisation charge                                                         237       360         -         - 
 Impairment of goodwill                                                      348         -         -         - 
 Write off of acquired goodwill                                                8       271         -         - 
 Profit on sale of fixed assets                                             (74)     (104)      (61)      (93) 
 Share of net profit of joint venture                                       (28)         -         -         - 
 Termination of lease                                                        (7)         -         -         - 
 Finance costs                                                               222       134       366       412 
 Foreign exchange gains                                                      516        10         -         - 
 Decrease/(increase) in inventories                                        3,377   (1,445)        44      (81) 
 (Increase)/decrease in receivables                                      (6,834)     3,019        37     4,057 
 (Increase)/decrease in prepayments                                        (237)        25     (246)         3 
 Increase/(decrease) in payables                                           1,162   (1,021)     1,296   (3,462) 
 Increase/(decrease) in progress payments                                  7,824   (1,611)     (163)       571 
 Pension fund payments                                                     (600)     (600)     (600)     (600) 
----------------------------------------------------------------------  --------  --------  --------  -------- 
 Cash generated from/(invested in) operating activities                    9,377   (2,544)     1,865       592 
 Net interest (paid)/received                                               (52)        66      (49)      (59) 
 Taxation received/(paid)                                                    460     (848)         -        30 
----------------------------------------------------------------------  --------  --------  --------  -------- 
 Net cash inflow/(outflow) from operating activities                       9,785   (3,326)     1,816       563 
 
 Investing activities 
 Payments for acquisitions, net of cash acquired                            (89)   (1,178)         -         - 
 Dividends received from subsidiaries                                          -         -     1,498     1,895 
 Purchase of property, plant, and equipment                                (781)     (721)     (268)     (409) 
 Proceeds on disposal of property, plant, and equipment                       97       128        62       101 
 Increase in cash held in the Escrow account maturing in more than 90    (6,165)         -         -         - 
 days 
 Net cash (outflow)/inflow from investing activities                     (6,938)   (1,771)   1,292     1,587 
----------------------------------------------------------------------  --------  --------  --------  -------- 
 Financing activities 
 Purchase of own shares                                                    (636)         -     (636)         - 
 Lease payments                                                            (327)     (268)     (560)     (597) 
 Dividends paid                                                            (578)   (1,362)     (578)   (1,362) 
 Net cash outflow from financing activities                              (1,541)   (1,630)   (1,774)   (1,959) 
----------------------------------------------------------------------  --------  --------  --------  -------- 
 Increase/(decrease) in cash and cash equivalents                          1,306   (6,727)     1,334       191 
 Opening cash and cash equivalents/(bank overdraft)                       16,125    22,886     (391)     (582) 
 Exchange differences on cash and cash equivalents                          (41)      (34)         -         - 
 Closing cash and cash equivalents/(bank overdraft)                       17,390    16,125       943     (391) 
----------------------------------------------------------------------  --------  --------  --------  -------- 
 

The financial information set out above does not constitute the Company's statutory accounts for the periods ended 30(th) April, 2021 or 30th April, 2020 but is derived from those accounts. Statutory accounts for 2020 have been delivered to the Registrar of Companies, and those for 2021 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts; their reports were unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 
 1. Segment information 
 
 The following table presents revenue and profit and certain assets and liability information 
  regarding the Group's divisions for the years ended 30th April, 2021 and 30th April, 2020. 
  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' 
                    2021     2020     2021     2020      2021      2020     2021     2020     2021     2020 
                 GBP'000  GBP'000  GBP'000  GBP'000   GBP'000   GBP'000  GBP'000  GBP'000  GBP'000  GBP'000 
Segmental 
revenue 
Total revenue     27,078   23,464    9,970   11,482    11,774    12,296   12,972   14,420   61,794   61,662 
Revenue from 
 other segments        -        -        -        -     (145)     (386)    (110)    (123)    (255)    (509) 
---------------  -------  -------  -------  -------  --------  --------  -------  -------  -------  ------- 
Revenue from 
 external 
 customers        27,078   23,464    9,970   11,482    11,629    11,910   12,862   14,297   61,539   61,153 
---------------  -------  -------  -------  -------  --------  --------  -------  -------  -------  ------- 
 
Segment result 
Operating 
 profit/(loss)     2,570    (289)      425    (340)       448         3  (1,657)  (2,493)    1,786  (3,119) 
Share of net 
 profit of 
 joint venture                                                                                  28        - 
Net finance 
 costs                                                                                       (222)    (134) 
---------------                                                                            -------  ------- 
Profit/(loss) 
 before 
 taxation                                                                                    1,592  (3,253) 
Taxation                                                                                     (415)      762 
---------------                                                                            -------  ------- 
Profit/(loss) 
 for the year                                                                                1,177  (2,491) 
---------------                                                                            -------  ------- 
 
Segmental 
assets 
Assets 
 attributable 
 to segments      35,414   26,666    4,066    3,570     8,492     8,382    8,468   10,740   56,440   49,358 
Unallocated 
 assets*                                                                                    17,952   17,047 
Total assets                                                                                74,392   66,405 
---------------                                                                            -------  ------- 
 
Segmental 
liabilities 
Liabilities 
 attributable 
 to segments      24,795   16,639    2,445    1,285     2,970     2,274    3,510    4,922   33,720   25,120 
Unallocated 
 liabilities *                                                                               9,636   11,157 
---------------                                                                            -------  ------- 
Total 
 liabilities                                                                                43,356   36,277 
---------------                                                                            -------  ------- 
 
Other 
segmental 
information 
Capital 
 expenditure         440       80       24       62       131       293      186      286      781      721 
Depreciation         176      222      545      620       377       346      263      235    1,361    1,423 
Amortisation           -        -        -        -        55       180      182      180      237      360 
Impairment             -        -        -        -         -         -      348        -      348        - 
 
 
 * Unallocated assets include certain fixed assets (including all UK properties), current assets 
  and deferred income tax assets. Unallocated liabilities include the defined pension benefit 
  scheme liability, the deferred income tax liability, and certain current liabilities. 
 
 Assets and liabilities attributable to segments comprise the assets and liabilities of each 
  segment adjusted to reflect the elimination of the cost of investment in subsidiaries and 
  the provision of financing loans provided by MS INTERNATIONAL plc. 
 
 Revenue between segments is determined on an arm's length basis. Segment results, assets, 
  and liabilities include items directly attributable to the segment as well as those that can 
  be allocated on a reasonable basis. 
 
 Geographical analysis 
 
 The following table presents revenue and expenditure and certain assets and liabilities information 
  by geographical segment for the years ended 30th April, 2021 and 30th April, 2020. The Group's 
  geographical segments are based on the location of the Group's assets. 
                                                     United Kingdom          Europe              Americas              Total 
                                                       2021      2020      2021      2020      2021       2020       2021      2020 
                                                    GBP'000   GBP'000   GBP'000   GBP'000   GBP'000    GBP'000    GBP'000   GBP'000 
 
External revenue by 
 origin                                              41,191    39,191    12,987    14,538     7,361      7,424     61,539    61,153 
Non-current assets                                   17,373    17,803     3,706     5,017     3,764      4,520     24,843    27,340 
Current assets                                       39,457    29,004     6,899     8,378     3,193      1,683     49,549    39,065 
Liabilities                                          32,516    30,473     3,729     5,051     7,111        753     43,356    36,277 
Capital expenditure                                     644       477       137       244         -          -        781       721 
 
Revenue disaggregated by destination is shown as follows: 
                                                                                                   2021                2020 
                                                                                            GBP'000      %        GBP'000     % 
 
United Kingdom                                                                               22,259        36%     21,036       34% 
Europe                                                                                       26,574        43%     30,748       50% 
USA & South America                                                                           7,361        12%      8,401       14% 
Rest of World                                                                                 5,345         9%        968        2% 
 
Total revenue                                                                                61,539       100%     61,153      100% 
------------------------    --------    --------    -------   -------   -------   -------   -------  ---------  ---------  -------- 
 
 

The Group's largest customer, which is reported in the 'Defence' division, contributed 14.9% to the Group's revenue (2020: 20.7% in the 'Defence' division). Only one other customer, also in the 'Defence' division, contributed more than 10% to the Group's revenue with a contribution of 11.3% (2020: 13.0% in the 'Defence' division).

 
 2. Employee information 
 
 The average number of employees, including executive directors, during the year was as 
 follows: 
                                                                                                    2021      2020 
                                                                                                  Number    Number 
 
      Production                                                                                     243       252 
      Technical                                                                                       72        66 
      Distribution                                                                                    32        45 
      Administration                                                                                  96        85 
----------------------------------------------------------------------------------------------  --------  -------- 
                                                                                                     443       448 
                                                                                                --------  -------- 
 
 (a) Staff costs 
 
      Including executive directors, employment costs were as follows: 
                                                                                                    2021      2020 
                                                                                                 GBP'000   GBP'000 
 
      Wages and salaries                                                                          17,420    17,133 
      Coronavirus job retention scheme income                                                    (1,690)     (240) 
      Social security costs                                                                        3,263     2,629 
      Pension costs                                                                                  557       870 
      Share options expense                                                                           29         - 
---------------------------------------------------------------------------------------------   --------  -------- 
                                                                                                  19,579    20,392 
                                                                                                --------  -------- 
 
      The Coronavirus job retention scheme income has been received in the following 
      countries: 
                                                                                                    2021      2020 
                                                                                                 GBP'000   GBP'000 
 
      UK                                                                                             313       240 
      The Netherlands                                                                              1,113         - 
      USA                                                                                            254         - 
      Poland                                                                                          10         - 
                                                                                                   1,690       240 
                                                                                                --------  -------- 
 
 
 (b) Directors' emoluments 
                                                                                                    2021      2020 
                                                                                                 GBP'000   GBP'000 
 
      Aggregate directors' emoluments                                                              1,570     1,300 
      Pension contributions                                                                           42        33 
      Share option expense                                                                            13         - 
---------------------------------------------------------------------------------------------   --------  -------- 
                                                                                                   1,625     1,333 
                                                                                                --------  -------- 
 
 
 3. (a) Taxation 
 
 The charge for taxation comprises: 
                                                                                 2021      2020 
                                                                              GBP'000   GBP'000 
 Current tax 
 United Kingdom corporation tax                                                   410     (510) 
 Adjustments in respect of previous years                                          25       165 
 Foreign corporation tax                                                           30     (203) 
---------------------------------------------------------------------------  --------  -------- 
 Group current tax expense/(credit)                                               465     (548) 
---------------------------------------------------------------------------  --------  -------- 
 
 Deferred tax 
 Origination and reversal of temporary differences                               (40)      (95) 
 Adjustments in respect of previous years                                        (10)     (153) 
 Difference in applicable tax rate                                                  -        34 
---------------------------------------------------------------------------  --------  -------- 
 Group deferred tax credit                                                       (50)     (214) 
---------------------------------------------------------------------------  --------  -------- 
 Total tax expense/(credit) on profit/(loss)                                      415     (762) 
---------------------------------------------------------------------------  --------  -------- 
 
 
 Tax relating to items charged or credited to other comprehensive income: 
 
 Deferred tax charged/(credited) through other comprehensive income 
 Deferred tax on measurement gains on pension scheme current year               (230)       545 
 Deferred tax on revaluation surplus on land and buildings                          -     (110) 
 Deferred tax in the Consolidated statement of comprehensive income             (230)       435 
---------------------------------------------------------------------------  --------  -------- 
 
 
 (b) Factors affecting the tax charge for the year 
 
 
 The tax charge/(credit) assessed for the year is higher than (2020: lower than) the standard 
  rate of corporation tax in the UK of 19% (2020 - 19%). The differences are explained below: 
 
                                                                                      2021          2020 
                                                                                   GBP'000       GBP'000 
 
 Profit/(loss) before tax                                                            1,592       (3,253) 
--------------------------------------------------------------------------        --------    ---------- 
 Profit/(loss) multiplied by standard rate of corporation tax of 19% (2020 
  - 19%)                                                                               302         (618) 
 
 Effects of: 
 Expenses not deductible for tax purposes                                            (164)         (420) 
 Adjustments in respect of overseas tax rates                                          262           230 
 Current tax adjustment in respect of previous years                                    25           165 
 Deferred tax adjustment in respect of previous years                                 (10)         (153) 
 Deferred tax adjustment in respect of different applicable rates                        -            34 
--------------------------------------------------------------------------        --------    ---------- 
 Total taxation expense/(credit) for the year                                          415         (762) 
--------------------------------------------------------------------------        --------    ---------- 
 
 (c) Factors affecting future tax charge 
 The March 2021 Budget announced an increase in the UK standard rate of corporation tax to 
  25% from 1st April, 2023. The legislation received Royal Assent on 10th June, 2021 so was 
  substantively enacted after the reporting date. Deferred tax at 30th April, 2021 has therefore 
  been provided at 19%. 
 
 The overall effect of the forthcoming increase in the main UK corporation tax rate to 25%, 
  had it been enacted at the reporting date, would have led to an increase in the deferred tax 
  asset of approximately GBP510,000 and an increase in the deferred tax liability of approximately 
  GBP450,000. The increase in the main rate of UK corporation tax from April 2023 is unlikely 
  to have a material effect on the annual tax charge in the Group's accounts arising from the 
  reversal of timing differences recognised through the consolidated income statement. 
 
 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. 
 
 
 
 4. Earnings per share 
 
 The calculation of basic earnings per share of 7.2p (2020 - loss per share 
  of 15.1p) is based on the profit for the year attributable to equity holders 
  of the parent of GBP1,177,000 (2020 - loss of GBP2,491,000) and on a weighted 
  average number of ordinary shares in issue of 16,342,816 (2020 - 16,504,491). 
  At 30th April, 2020 there were 380,000 (2020 - 400,000) potentially dilutive 
  shares on option with a weighted average effect of 391,667 (2020 - 400,000) 
  giving a diluted earnings per share of 7.0p (2020 - loss per share of 15.1p). 
 
                                                                      2021          2020 
 
 Number of ordinary shares in issue at start of the year        18,396,073    18,396,073 
 Cancellation of ordinary shares during the year                 (555,000)             - 
-----------------------------------------------------------   ------------  ------------ 
 Number of ordinary shares in issue at the end of the year      17,841,073    18,396,073 
 
 Weighted average number of shares in issue                     18,234,198    18,396,073 
 Less weighted average number of shared held in the ESOT         (245,048)     (245,048) 
 Less weighted average number of shares purchased by the 
  Company                                                      (1,646,334)   (1,646,334) 
------------------------------------------------------------  ------------  ------------ 
 Weighted average number of shares to be used in basic 
  EPS calculation                                              16,342,816    16,504,691 
 Weighted average number of the 380,000 (2020 - 400,000) 
  potentially dilutive shares                                      391,667       400,000 
 Weighted average diluted shares                                16,734,483    16,904,691 
------------------------------------------------------------  ------------  ------------ 
 
 Profit/(loss) for the year attributable to equity holders 
  to the parent in GBP                                           1,177,000   (2,491,000) 
 Basic earnings/(loss) per share                                      7.2p       (15.1p) 
 Diluted earnings/(loss) per share                                    7.0p       (15.1p) 
 
           The prior year diluted loss per share is the same as the basic loss per share 
               as the impact of potential dilutive shares is anti-dilutive and therefore 
                                                                         not recognised. 
 
 
 5. Dividends paid and proposed                                       2021          2020 
                                                                   GBP'000       GBP'000 
 Declared and paid during the year 
      Final dividend for 2020: 1.75p (2019 - 6.50p)                    289         1,073 
      Interim dividend for 2021: 1.75p (2020 - 1.75p)                  289           289 
------------------------------------------------------------  ------------ 
                                                                       578         1,362 
                                                              ------------  ------------ 
 
 Proposed for approval by shareholders at the AGM 
      Final dividend for 2021: 6.5p (2020 - 1.75p)                   1,073           289 
------------------------------------------------------------  ------------  ------------ 
 
 
 6. Trade and 
 other 
 receivables 
                                                           Group                         Company 
                                                     2021               2020         2021             2020 
                                                  GBP'000            GBP'000      GBP'000          GBP'000 
 
 Trade receivables (net of allowance for 
  expected credit losses)                           8,764          4,413            2,184              932 
 Amounts owed by subsidiary undertakings                -                  -       13,872           14,422 
 Amounts owed                                         150                               - 
 by joint 
 venture                                                                   -                             - 
 Other 
  receivables                                         455                176           79               79 
                                                           ----------------- 
                                                    9,369              4,589       16,135           15,433 
 ---------------  -----------  --------------  ----------  -----------------  -----------  --------------- 
 
 (a) Trade receivables are denominated in the 
 following currencies: 
                                                           Group                         Company 
                                                     2021               2020         2021             2020 
                                                  GBP'000            GBP'000                       GBP'000 
 
 Sterling                                           6,112              1,551        1,675              838 
 Euro                                               1,692              2,319          509               94 
 US dollar                                            695                349            -                - 
 Other 
  currencies                                          265                194            -                - 
----------------  -----------  --------------              -----------------               --------------- 
                                                    8,764              4,413        2,184              932 
 ---------------  -----------  --------------  ----------  -----------------  -----------  --------------- 
 
 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 
 2021                   8,764           7,268       1,381                102           28             (15) 
 2020                   4,413           2,745         343                211          327              787 
 
 As at 30th April, 2021 trade receivables at a nominal value of GBP43,000 (2020 - GBP109,000) 
  were impaired and fully provided. Bad debts of GBP81,000 (2020 - GBP62,000) were recovered 
  and bad debts of GBP16,000 (2020 - GBP68,000) were incurred. 
 
 Company                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 
 2021                   2,184           2,033         122                 28            -                1 
 2020                     932             865          54                  3            7                3 
 
 As at 30th April, 2021 trade receivables at a nominal value of GBP11,000 (2020 - GBP73,000) 
  were impaired and fully provided. Bad debts of GBP69,000 (2020 - GBP33,000) were recovered 
  and bad debts of GBP7,000 (2020 - GBP55,000) were incurred. 
 
 (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 
  (2020 - 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: 
                                                                                     2021             2020 
                                                                                  GBP'000          GBP'000 
 
 Amounts due from companies backed by liquid 
  assets                                                                            7,587            7,530 
 Amounts due from 'MS INTERNATIONAL Estates 
  Limited'                                                                          6,285            6,892 
---------------------------------------------  ----------  -----------------  -----------  --------------- 
                                                                                   13,872           14,422 
 ---------------  -----------  --------------  ----------  -----------------  -----------  --------------- 
 
 
7. Cash and cash 
equivalents / bank 
overdraft 
                                                 Group                               Company 
                                             2021                     2020               2021     2020 
                                          GBP'000                  GBP'000            GBP'000  GBP'000 
 
Cash at bank and in hand                   17,390                   16,125                943        - 
Bank overdraft                                  -                        -                  -    (391) 
----------------------------  -------------------  -----------------------  -----------------  ------- 
Cash and cash equivalents                  17,390                   16,125                943    (391) 
----------------------------  -------------------  -----------------------  -----------------  ------- 
Restricted cash held in                     6,165                        -                  -        - 
Escrow - maturing in more 
than 90 days 
Total cash                                 23,555                   16,125                943    (391) 
----------------------------  -------------------  -----------------------  -----------------  ------- 
 
The balance held in Escrow provides security to Lloyds Bank plc in respect of any guarantees, 
 indemnities, and performance bonds given by the group in the ordinary course of business. 
 
8. Net funds 
 
Analysis of net funds                            Group                               Company 
                                             2021                     2020               2021     2020 
                                          GBP'000                  GBP'000            GBP'000  GBP'000 
Cash and cash equivalents                  17,390                   16,125                943        - 
Bank overdraft                                  -                        -                  -    (391) 
Restricted cash held in 
Escrow                                      6,165                        -                  -        - 
Lease liabilities                           (545)                  (1,229)            (5,609)  (5,992) 
----------------------------  -------------------  -----------------------  -----------------  ------- 
                                           23,010                   14,896            (4,666)  (6,383) 
                              -------------------  -----------------------  -----------------  ------- 
 
Group movement in net 
funds 
                              Cash/bank overdraft  Restricted cash held in  Lease liabilities   Total 
                                                           Escrow 
 
Net funds as at 27th April, 
 2019                                      22,886                        -                  -   22,886 
Recognised on adoption of 
 IFRS 16                                        -                        -              (781)    (781) 
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 30th April, 
 2020                                      16,125                        -            (1,229)   14,896 
----------------------------  -------------------  -----------------------  -----------------  ------- 
Cash flows                                  1,306                    6,165                327    7,798 
Foreign exchange adjustments                 (41)                        -               (16)     (57) 
Lease cancellation                              -                        -                402      402 
Other changes                                   -                        -               (29)     (29) 
Net funds as at 30th April, 
 2021                                      17,390                    6,165              (545)   23,010 
----------------------------  -------------------  -----------------------  -----------------  ------- 
 
Company movement in net 
funds 
                              Cash/bank overdraft     Restricted cash held  Lease liabilities   Total 
                                                                 in Escrow 
 
Net funds as at 27th April, 
 2019                                       (582)                        -                  -    (582) 
Recognised on adoption of 
 IFRS 16                                        -                        -            (6,400)  (6,400) 
Cash flows                                    191                        -                597      788 
Other changes                                   -                        -              (189)    (189) 
Net funds as at 30th April, 
 2020                                       (391)                        -            (5,992)  (6,383) 
----------------------------  -------------------  -----------------------  -----------------  ------- 
Cash flows                                  1,334                        -                560    1,894 
Other changes                                   -                        -              (177)    (177) 
Net funds as at 30th April, 
 2021                                         943                        -            (5,609)  (4,666) 
----------------------------  -------------------  -----------------------  -----------------  ------- 
 
 
 
 9. Reserves 
 
 Share capital 
 The balance classified as share capital includes the nominal value on issue of the Company's 
  equity share capital, comprising 10p ordinary shares. 
 
 Capital redemption reserve 
 The balance classified as capital redemption reserve represents the nominal value of issued 
  share capital of the Company, repurchased. 
 
 Other reserves 
 Following the transfer of assets held at valuation by the Company to a subsidiary company, 
  a reserve has been created which is non-distributable. This is equal to the revaluation reserve 
  previously arising. 
 
 Additionally, it includes the non-distributable retained reserve for the revaluation reserve 
  previously showing in the Company for properties now transferred to other members of the Group. 
 
 Revaluation reserve 
 The asset revaluation reserve is used to record increases in the fair value of land and buildings 
 and decreases to the extent that such decrease relates to an increase on the same assets 
 previously 
 recognised in equity. 
 
 Special reserve 
 The special reserve is a distributable reserve created following the cancellation of a share 
  premium account by way of court order in March 1993. 
 
 Currency translation reserve 
 The foreign currency translation reserve is used to record exchange differences arising from 
  the translation of the financial statements of foreign subsidiaries. It is also used to record 
  the effect of hedging net investments in foreign operations. 
 
 Treasury shares 
                                                                                    2021      2020 
                                                                                 GBP'000   GBP'000 
 Employee Share Ownership Trust                                                      100       100 
 Shares in treasury (see below)                                                    2,689     2,959 
                                                                                   2,789     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 (2020 - 245,048) ordinary shares, which represents 
 1.5% (2020 - 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, 2021 was GBP380,000 (2020 - GBP338,000). The 
 Company has made payments of GBPnil (2020 - GBPnil) into the ESOT bank accounts during the 
 period. During the year, no options have been granted over shares (2020 - 1,575,000). 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 GBP3,000 (2020 - GBP8,000). During the year, no options on shares were exercised (2020 
  - nil) and no shares were purchased (2020 - nil). 
 
 On 11th December, 2013 the Company purchased 1,000,000 of its shares with a further 646,334 
  shares being purchased on 30th January, 2014. 
 On 15th January, 2021 the Company purchased 555,000 of its own 10p ordinary shares for a 
 consideration 
 of GBP636,000. The shares were cancelled on the same date at a weighted average price of 
 GBP163.33 
 per share, totalling GBP906,000. 
 
 The Company made the following purchases and cancellations of its own 10p ordinary shares 
  to be held in Treasury: 
                                                                                  Number   GBP'000 
 Purchase of 1,000,000 shares from the Group's pension scheme on 11th 
  December, 2013                                                               1,000,000     1,722 
 Purchase of 646,334 shares on 30th January, 2014                                646,334     1,237 
 Purchase of 555,000 shares on 15th January, 2021                                555,000       636 
 Consideration paid for purchase of own shares                                 2,201,334     3,595 
 Cancellation of 555,000 shares at weighted average rate                       (555,000)     (906) 
---------------------------------------------------------------------------               -------- 
 Net value of treasury shares                                                  1,646,334     2,689 
----------------------------------------------------------------------------  ----------  -------- 
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

FR SEDFWFEFSELM

(END) Dow Jones Newswires

June 22, 2021 02:00 ET (06:00 GMT)

Ms (LSE:MSI)
Historical Stock Chart
From Aug 2021 to Sep 2021 Click Here for more Ms Charts.
Ms (LSE:MSI)
Historical Stock Chart
From Sep 2020 to Sep 2021 Click Here for more Ms Charts.