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 Mar 2024 to Apr 2024
Ms (LSE:MSI)
Historical Stock Chart
From Apr 2023 to Apr 2024
