RNS Number:3803D
Omega International Group PLC
06 September 2007
Immediate Release 6 September 2007
Omega International Group PLC
INTERIM RESULTS
Omega International Group PLC, a leading UK manufacturer of branded kitchen
furniture, today announces its interim results for the six months to 26 June
2007.
FINANCIAL HIGHLIGHTS
Increase 6 mnths 6 mnths
2007 2006
* Revenue 21% #16.3m #13.5m
* Operating profit 28% #3.8m #3.0m
* Pre tax profit 25% #3.8m #3.1m
* Basic earnings per share 23% 9.5p 7.7p
* Proposed interim dividend per share 29% 0.9p 0.7p
* Net assets per share 12% 73p 65p
*Successful completion of the 108,000 sq ft extension, taking the facility
to 315,000 sq ft which is fully operational.
*New products launched during April to further strengthen the three brands
in the second half.
Commenting on the results Chairman, Bob Murray, said:
"I am delighted to report an excellent first six months to 26 June 2007. This
provides us with a strong foundation for the full year and places the Group well
on course to achieving its growth objective set at the end of 2005, that being
to double the size of the business by 2010."
For further information, please contact:
Omega International Group plc: Tel: 01405 743 333
Francis Galvin: Group Chief Executive
Buchanan Communications: Tel: 020 7466 5000
Mark Edwards e-mail: nicolac@buchanan.uk.com
Nicola Cronk
Susanna Gale
Notes to editors:
The Group's core business is the design, manufacture and marketing of branded
kitchen furniture through three main brands: Sheraton, Omega and Chippendale.
These three brands are sold throughout the UK, mainly to independent retailers.
The Group's manufacturing, distribution and sales facilities are located in its
purpose built factory complex in Thorne, Doncaster, adjacent to the M18
motorway.
Chairman's statement
Meeting objectives
I am delighted to report an excellent first six months to 26 June 2007. This
provides us with a strong foundation for the full year and places the Group well
on course to achieving its growth objective set at the end of 2005, that being
to double the size of the business by 2010.
Exceeding expectations
Revenue for the first half of 2007 was #16.3m, 21% higher than the same period
last year (2006: #13.5m).
Despite the impact of rising interest rates, energy and material prices,
operating profit increased by 28% to #3.84m (2006: #3.00m). Operating margins
rose to 23% (2006: 22%). Profit before tax rose by 25% to #3.84m (2006: #3.07m).
Basic earnings per share rose 23% to 9.5p (2006: 7.7p)
I am pleased to report that the board has approved an increase of 29% in the
interim dividend this year to 0.9p per share (2006: 0.7p) payable on 4 January
2008. Cash generation continues to be strong and even after taking account of
capital expenditure of #2.85m in the first half we still had net cash of #1.02m
at the end of the period. Balance sheet values have been enhanced and net assets
per share reported under IFRS are now 73p (2006: 65p).
Growing the business
As stated, our objective is to double the size of the business by 2010.
Construction of the 108,000 sq ft extension to our freehold production
facilities has been successfully completed and is fully operational, taking the
facility up to 315,000 sq ft. This was accomplished with minimal disruption and
in line with the approved capital expenditure budget. On behalf of the Board I
would like to thank our talented team for their professionalism. Manufacturing
capacity also increased during the period following the addition of a new angle
plant, increasing the panel cutting capability in line with our future growth
plans.
Our investments in the marketplace continued during the first half, obtaining
new display dealers and updating the display base at existing customers. New
products were launched during April, further strengthening our current three
brands. This increased product choice, exemplary service and the benefit of
price increases in the range of 3.5% to 5.0% should ensure continued growth
during the second half of the year.
Following this strong performance in the first six months and encouraging
trading since the half year end, the Directors continue to have confidence in
the business and expect the full year results to be in line with market
expectations.
Bob Murray CBE FCCA
Chairman
6 September 2007
Consolidated income statement
For the six months ended 26 June 2007
Notes Unaudited Unaudited Unaudited
six months to six months to year ended
26 June 2007 30 June 2006 31 December
2006
#'000 #'000 #'000
Revenue 2 16,342 13,482 28,273
Cost of Sales (8,139) (6,730) (14,023)
------------------- ------ --------- --------- -----------
Gross profit 8,203 6,752 14,250
Other operating expenses (4,362) (3,750) (7,976)
------------------- ------ --------- --------- -----------
Operating profit 3,481 3,002 6,274
Interest receivable 5 70 140
Interest payable (5) - -
------------------- ------ --------- --------- -----------
Profit before tax 3,841 3,072 6,414
Tax on profit on ordinary
activities 3 (1,190) (922) (1,937)
------------------- ------ --------- --------- -----------
Profit for the period 2,651 2,150 4,477
------------------- ------ --------- --------- -----------
Earnings per share (pence) 4
Basic 9.5 7.7 16.1
Diluted 9.4 7.7 16.0
------------------- ------ --------- --------- -----------
All results presented above arise from continuing operations and are wholly
attributable to the equity shareholders of the Company.
Consolidated statement of recognised income and expense
For the six months ended 26 June 2007
Unaudited Unaudited Unaudited
six months to six months to year ended
26 June 2007 30 June 2006 31 December
2006
#'000 #'000 #'000
Profit for the period 2,651 2,150 4,477
Deferred tax on share-based
payments 140 126 203
Deferred tax on revaluation
of land and buildings 50 38 (96)
----------------------- --------- --------- -----------
Total recognised income for
the period 2,841 2,314 4,584
----------------------- --------- --------- -----------
Consolidated balance sheet
At 26 June 2007
Note Unaudited Unaudited Unaudited
six months to six months to year ended
26 June 2007 30 June 2006 31 December
2006
#'000 #'000 #'000
Non-current assets
Intangible assets 96 150 124
Property, plant and
equipment 19,211 14,759 17,743
------------------ ------- --------- --------- -----------
19,307 14,909 17,867
------------------ ------- --------- --------- -----------
Current assets
Inventories 4,381 3,749 3,642
Trade and other
receivables 6,369 5,348 5,126
Cash and cash equivalents 1,019 4,534 1,051
------------------ ------- --------- --------- -----------
11,769 13,631 9,819
------------------ ------- --------- --------- -----------
Total assets 31,076 28,540 27,686
------------------ ------- --------- --------- -----------
Liabilities
Current liabilities
Trade and other payables 7,048 5,537 6,089
Current tax liabilities 1,256 2,250 997
------------------ ------- --------- --------- -----------
8,304 7,787 7,086
------------------ ------- --------- --------- -----------
Non-current liabilities
Other non-current
liabilities 38 65 51
Deferred tax liabilities 2,457 2,675 2,647
------------------ ------- --------- --------- -----------
2,495 2,740 2,698
------------------ ------- --------- --------- -----------
Total liabilities 10,799 10,527 9,784
------------------ ------- --------- --------- -----------
Net assets 20,277 18,013 17,902
------------------ ------- --------- --------- -----------
Shareholders' Equity
Ordinary shares 2,776 2,776 2,776
Share premium 1,563 1,563 1,563
Capital redemption reserve 3,096 3,096 3,096
Revaluation reserve 5,336 5,439 5,294
Retained earnings 7,506 5,139 5,173
------------------ ------- --------- --------- -----------
Total equity 6 20,277 18,013 17,902
------------------ ------- --------- --------- -----------
Consolidated cash flow statement
For the six months ended 26 June 2007
Note Unaudited Unaudited Unaudited
six months to six months to year ended
26 June 2007 30 June 2006 31 December
2006
#'000 #'000 #'000
Cash flows from operating
activities
Cash generated from
operations 7 3,936 2,791 6,202
Interested received 6 64 142
Interest paid (3) - -
Tax paid (930) - (2,375)
------------------- ------ --------- --------- -----------
Net cash from operating
activities 3,009 2,855 3,969
------------------- ------ --------- --------- -----------
Cash flows from investing
activities
Purchase of property,
plant and equipment (2,850) (525) (2,540)
Sale of property, plant
and equipment 3 3 3
------------------- ------ --------- --------- -----------
Net cash used in investing
activities (2,847) (522) (2,537)
------------------- ------ --------- --------- -----------
Cash flows from financing
activities
Equity dividends paid to
shareholders (194) (139) (2,721)
------------------- ------ --------- --------- -----------
Net cash used in financing (194) (139) (2,721)
------------------- ------ --------- --------- -----------
Net (decrease)/increase in
cash in the period (32) 2,194 (1,289)
Cash and cash equivalent
at 1 January 1,051 2,340 2,340
------------------- ------ --------- --------- -----------
Cash and cash equivalents
at end of period 1,019 4,534 1,051
------------------- ------ --------- --------- -----------
Notes to the interim report
For the six months ended 26 June 2007
1. General
The next annual financial statements of the Group will be prepared in accordance
with European Union endorsed International Financial Reporting Standards
("IFRS"), International Financial Reporting Interpretation Committee ("IFRIC")
interpretations and the Companies Act 1985 applicable to companies reporting
under IFRS.
The interim accounts have been prepared in accordance with the accounting
policies the Group has adopted from 1 January 2007, which are set out on pages
10 to 12.
Appendix 1 to this report contains the Group's statement of the transition to
IFRS, which describes the impact of changing the accounting policies from United
Kingdom Generally Accepted Accounting Policies ("UK GAAP") to IFRS on the
Group's equity, net income and cash flows as well as providing each of the
reconciliations required by IFRS 1 "First time adoption of International
Financial Reporting Standards" ("IFRS 1").
The Group has made use of the exemptions under IFRS 1 in preparing these
accounts and these are set out in Appendix 1.
The results for the financial year ended 31 December 2006 are not the Group's
statutory accounts for the financial year. Those accounts, which received an
unqualified auditors' report and which have been delivered to the Registrar of
Companies, were prepared under UK GAAP and in accordance with the Companies Act
1985.
The interim accounts for the six months ended 26 June 2007 and 30 June 2006
contained within this statement do not constitute statutory accounts.
The interim accounts, comprising the financial information for the six months
ended 26 June 2007 and the restated financial information for the year ended 31
December 2006 and six months ended 30 June 2006, were approved by the Board of
Directors on 6 September 2007 and are unaudited.
2. Revenue
Revenue and operating results are derived from within the United Kingdom and
from the Group's principal activity of the manufacture and marketing of branded
consumer products.
3. Taxation
The taxation charge on profit on ordinary activities has been based upon the
estimated effective tax rate for the year.
4. Earnings per share
Unaudited Unaudited Unaudited
six months to six months to year ended
26 June 30 June 31 December
2007 2006 2006
-------------------- ---------- ---------- ----------
Earnings per share (pence)
Basic 9.5 7.7 16.1
Diluted 9.4 7.7 16.0
-------------------- ---------- ---------- ----------
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of shares in issue during
each period.
Notes to the interim report continued
For the six months ended 26 June 2007
4. Earnings per share continued
Diluted earnings per share reflects the adjustment of the weighted average
number of ordinary shares in issue to assume conversion of all dilutive
potential ordinary shares, being outstanding employee share options.
Weighted average number of shares:
Unaudited Unaudited Unaudited
six months to six months to year ended
26 June 30 June 31 December
2007 2006 2006
-------------------- ---------- ---------- ----------
For basic earnings per share 27,761,150 27,761,150 27,761,150
Share options 425,652 220,757 291,157
-------------------- ---------- ---------- ----------
For diluted earnings per share 28,186,802 27,981,907 28,052,307
-------------------- ---------- ---------- ----------
Earnings attributable to ordinary shareholders used in the calculation of basic
and diluted earnings per share is as follows:
Unaudited Unaudited Unaudited
six months to six months to year ended
26 June 30 June 31 December
2007 2006 2006
#'000 #'000 #'000
-------------------- ---------- ---------- ----------
Profit for the period 2,651 2,150 4,477
-------------------- ---------- ---------- ----------
5. Dividends
Amounts recorded as dividends in the income statement comprise:
Unaudited Unaudited Unaudited
six months to six months to year ended
26 June 30 June 31 December
2007 2006 2006
#'000 #'000 #'000
----------------- ------ ---------- ---------- ----------
Final dividend per share for
2005 1.3p - 361 361
Special dividend per share 0.8p - - 2,221
Interim dividend per share
for 0.7p - - 194
2006
Final dividend per share for
2006 1.8p 500 - -
----------------- ------ ---------- ---------- ----------
500 361 2,776
----------------- ------ ---------- ---------- ----------
The Directors have approved an interim dividend of 0.9p per ordinary share
payable on 4 January 2008 to shareholders recorded on the register on 7 December
2007.
6. Statement of changes in Unaudited Unaudited Unaudited
shareholders' equity six months to six months to year ended
26 June 30 June 31 December
2007 2006 2006
#'000 #'000 #'000
Profit for the fnancial period 2,651 2,150 4,477
Ordinary and special
dividends paid (500) (361) (2,776)
Share option expense 34 34 68
Deferred tax movement 190 164 107
--------------------- ---------- ---------- -----------
Increase in equity
shareholders' funds 2,375 1,987 1,876
Equity shareholders' funds at
beginning of period 17,902 16,026 16,026
--------------------- ---------- ---------- -----------
Equity shareholders' funds at
end of period 20,277 18,013 17,902
--------------------- ---------- ---------- -----------
7. Reconciliation of operating Unaudited Unaudited Unaudited
profit to net cash inflow from six months to six months to year ended
operating activities 26 June 30 June 31 December
2007 2006 2006
#'000 #'000 #'000
Operating profit 3,841 3,002 6,274
Depreciation and amortisation 279 283 578
Profit on disposal of fixed
assets (1) (2) (2)
Share option expense 34 34 68
Release of grant income (13) (13) (26)
Increase in inventories (739) (729) (622)
Increase in trade and other
receivables (1,243) (992) (778)
Increase in trade and other
payables 1,778 1,208 710
--------------------- ---------- ---------- -----------
Net cash inflow from
operating activities 3,936 2,791 6,202
--------------------- ---------- ---------- -----------
Appendix 1 - transition to IFRS
Introduction
Omega International Group PLC prepared its 2006 consolidated financial
statements in accordance with applicable United Kingdom Accounting Standards (UK
GAAP) and the Companies Act 1985.
With effect from 1 January 2007, the Group will prepare its consolidated
financial statements in accordance with IFRS. The transition date for the
purposes of adopting IFRS is 1 January 2006.
Omega International Group PLC presents below the effects of the transition to
IFRS and the accounting policies and transitional exemptions or choices it has
applied in adopting IFRS.
Transition effects
IFRS 1 permits those companies adopting IFRS for the first time to take certain
exemptions from the full requirements of IFRS in the transition period. Omega
International Group PLC will take the following exemptions:
1. Business Combinations: The accounting for business combinations, which took
place when Omega International Group PLC acquired Omega PLC, need not be
restated under IFRS 3 "Business combinations", as restatement of acquisitions
prior to the date of transition is not required. Accordingly the investments as
stated under IFRS will be the same as that previously reported under UK GAAP.
2. Compound Financial Instruments: IAS 32 "Financial instruments: Disclosure and
presentation" requires an entity to split a compound financial instrument at
inception into separate liability and equity components. A first time adopter
need not separate these two portions if the liability component is no longer
outstanding at the date of transition to IFRS. Settlement of the Group's
preference shares took place in 2004.
Overview of impact
The move from UK GAAP to IFRS does not effect the Group's strategy or commercial
decisions, nor does it significantly change the consolidated income statement or
cash flow statement.
The primary change is in relation to IAS 12 "Income taxes" and the Group's
recognition and reporting of deferred tax, which is reflected in the
consolidated balance sheet.
Impact of IFRS on the consolidated income statement
IFRS has resulted in minor presentational changes, although there is no impact
on the Group's results.
Impact of IFRS on the consolidated balance sheet
1. Intangible assets
Under IAS 38 "Intangible assets", computer software is classified as an
intangible asset. The effect is to transfer the net book value of such assets
from tangible to intangible assets. At 1 January 2006 this amounted to #154,667,
at 30 June 2006 this amounted to #140,163 and at 31 December 2006 to #117,511.
2. Provisions for other liabilities and charges
Under IAS 12 "Income taxes", the general principle is that deferred tax
liabilities should be recognised for all taxable temporary differences, except
under certain specific circumstances. Accordingly, the Group has amended its
treatment of the deferred tax liability associated with the revaluation of its
freehold land and buildings and share-based payments.
Unaudited Unaudited Unaudited
1 January 30 June 31 December
2006 2006 2006
#'000 #'000 #'000
Deferred tax liability
under UK GAPP 536 578 493
IAS 12 deferred tax recognition
of revalued property 2,261 2,223 2,357
IAS 12 deferred tax on
share-based payments - (126) (203)
---------------------- ---------- ---------- ----------
Deferred tax liability 2,797 2,675 2,647
---------------------- ---------- ---------- ----------
3. Equity shareholders' funds
Under IAS 12, the opening balance for equity shareholders' funds changes for the
deferred tax movement on the revaluation of the Group's freehold land and
buildings and share-based payments as previously stated. In addition, there is a
charge in both periods for the change in net book value of these assets and the
associated indexation allowances available against the asset, as well as
movement on the intrinsic value of the share-based payments.
Unaudited Unaudited Unaudited
1 January six months to year ended
2006 30 June 31 December
#'000 2006 2006
#'000 #'000
Equity shareholders' funds under UK
GAAP 18,287 20,110 20,056
IAS 12 deferred tax recognition of
revalued property at 1 January 2006 (2,261) (2,261) (2,261)
IAS 12 deferred tax movement in the
period on revalued property - 38 (96)
IAS 12 deferred tax movement in the
period on share-based payments - 126 203
---------------------- ---------- ---------- ----------
Equity shareholders' funds 16,026 18,013 17,902
---------------------- ---------- ---------- ----------
Impact of IFRS on the consolidated cash flow statement
IFRS has resulted in minor presentational changes, although there is no impact
on the net cash flows of the Group.
Group accounting policies under IFRS
1. Introduction
These interim accounts have been prepared, for the first time, on the basis of
the IFRS accounting policies set out below. The disclosures required by IFRS 1
concerning the transition from UK GAAP are included in this statement.
In preparing the Group's 2007 interim accounts, management has amended certain
accounting, valuation and consolidation methods applied in the UK GAAP financial
statements to comply with IFRS. The comparative figures in respect of 2006 were
restated to reflect these adjustments, except as described in the accounting
policies.
The financial statements have been prepared in accordance with IFRS as adopted
for use in the European Union, including IFRIC interpretations, and in line with
those provisions of the Companies Act 1985 applicable to companies reporting
under IFRS.
The preparation of financial statements in conformity with IFRS requires the use
of certain accounting estimates. It also requires management to exercise its
judgement in the process of applying the Group's accounting policies.
2. Consolidation
Subsidiaries
The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group. The cost of an acquisition is measured as the fair
value of the assets given, equity instruments issued and liabilities incurred at
the date of exchange, plus costs directly attributable to the acquisition. Loans
to subsidiaries are classified as part of the investment when such loans are
envisaged to be long term in nature. The fair value of share options granted to
employees of subsidiary undertakings are treated as a capital contribution and
the fair value is therefore added to the investment balance.
Inter-company transactions, balances and unrealised gains on transactions
between group companies are eliminated. Unrealised losses are also eliminated
but considered an impairment indicator of the asset transferred. Accounting
policies of subsidiaries have been changed where necessary to ensure consistency
with the policies adopted by the Group.
3. Foreign currency translation
Transactions and balances
Foreign currency transactions are translated into the functional currency using
the exchange rates prevailing at the dates of transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement, except
where deferred in equity as qualifying hedges.
4. Property, plant and equipment
Tangible fixed assets, excluding freehold land and buildings, are stated at the
cost of acquisition less any provision for depreciation. Cost includes
expenditure that is directly attributable to the acquisition of the items.
Freehold land and buildings are shown at fair value on an existing use basis. An
external professional valuer performs a full revaluation at least every five
years and an interim valuation is carried out in the third year after a full
revaluation. Interim valuations are also performed where the Directors believe
that it is likely that there has been a material change in value. Revaluation
gains are recognised in full through the statement of total recognised income
and expense and credited to the revaluation reserve.
The assets residual values and useful lives are reviewed, and adjusted if
appropriate, at each balance sheet date.
Depreciation is provided at rates calculated to write-off the valuation or cost,
less estimated residual value, of each asset on a straight-line basis from the
date it is brought into productive use to the end of its life, as follows:
Freehold buildings 50 years
Plant and equipment 5-10 years
Fixtures and fittings 4-10 years
Computer hardware 3-6 years
Freehold land is not depreciated.
5. Intangible assets
Trademarks
Acquired trademarks are shown at historical costs less amortisation.
Amortisation is provided on a straight-line basis over the useful economic life
of the asset, which has been taken as five years.
Computer software
Acquired computer software is capitalised on the basis of the costs incurred to
acquire and bring to use the specific software. These costs are amortised over
their estimated useful lives (3-6 years).
Costs associated with developing or maintaining computer software programmes are
recognised as an expense is incurred. Costs that are directly associated with
the development of identifiable and unique software products controlled by the
Group, and that will probably generate economic benefits exceeding costs beyond
one year, are recognised as intangible assets.
6. Impairment of non-financial assets
An asset's carrying amount is written down immediately to its recoverable amount
if the asset's carrying amount is greater than its estimated recoverable amount.
The recoverable amount is the higher of an asset's fair value less costs to sell
and its value in use.
7. Derivative financial instruments and hedging activities
Derivatives are initially recognised at their fair value on the date a
derivative contract is entered into and are subsequently remeasured at their
fair value. The method of recognising the resulting gain or loss depends on
whether the derivative is designated as a hedging instrument, and if so, the
nature of the item being hedged. The Group has not designated any derivatives as
hedging instruments. As a result, changes in the fair value of any derivative
instruments are recognised immediately in the income statement.
8. Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost is the purchase cost, including transport, for raw materials, together with
a proportion of manufacturing overheads based on normal levels of activity, for
work in progress and finished goods.
Net realisable value is based on estimated normal selling price, less further
costs expected to be incurred to completion and sale. Provision is made for
obsolete, slow moving or defective items where appropriate.
9. Trade receivables
Trade receivables are recognised at amortised costs, less provision for
impairment. A provision for impairment of trade receivables is established when
there is objective evidence that the Group will not be able to collect all
amounts due according to the original terms of the receivables. The amount of
the provision is the difference between the asset's carrying amount and the
present value of estimated future cash flows. The amount of the loss is
recognised in the income statement, as are subsequent recoveries of amounts
previously written-off.
10. Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held on call at banks
and bank overdrafts. Bank overdrafts are shown within borrowings in current
liabilities on the balance sheet.
11. Trade payables
Trade payables are recognised initially at fair value and subsequently measured
at amortised cost using the effective interest rate.
12. Share capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from proceeds.
13. Deferred income tax
Deferred income tax is provided in full, using the liability method, on
temporary timing differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements.
However, the deferred income tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting nor
taxable profit or loss. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the balance sheet date
and are expected to apply when the related deferred income tax asset is realised
or the deferred income tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that the
future taxable profit will be available against which the temporary differences
can be utilised.
14. Employee benefits
Pension obligations
The group provides pension benefits to its employees through contributions to
defined contribution Group personal pension policies. The amounts charged to the
income statement are the contributions payable in the period.
Share-based compensation
The Group issues share options to certain employees which are measured at the
fair value and recognised as an expense in the income statement with a
corresponding increase profit and loss reserve. The fair value of the employee
services received in exchange for the grant of the options is recognised as an
expense. The total amount to be expensed over the vesting period is determined
by reference to the fair value of the options granted.
The fair values of these payments are measured at the dates of grant and are
recognised over the period during which employees become unconditionally
entitled to the awards. At each balance sheet date, the Group revises its
estimate of the number of options that are expected to vest. It recognises the
impact of the revision to original estimates, if any, in the income statement,
with a corresponding adjustment to retained earnings.
15. Income recognition
Revenue
Revenue comprises the net amount receivable from customers after deducting any
discounts for displays or for other marketing support in respect of the goods
and services provided in the normal course of business. Revenue is recognised
once goods are delivered or the services are provided to customers. Revenue
excludes VAT.
Interest Income
Interest income is accounted for on a receivable basis.
Government grants
Government grants are recognised in the consolidated income statement so as to
match them with the expenditure towards which they are intended to contribute.
To the extent that the grants received are intended as a specific reduction
against certain assets, they are recognised in the consolidated income statement
over the expected useful life of the related assets.
16. Leases
Rentals under operating leases are charged on a straight-line basis over the
lease term.
17. Related party disclosures
In accordance with IAS 24 "Related party transactions", the company discloses
details, if any, of material transactions between the reporting entity and
related parties.
18. Dividend distribution
Dividend distribution to the Company's shareholders is recognised as a liability
in the Group's financial statements in the period in which the dividends are
approved for payment.
This information is provided by RNS
The company news service from the London Stock Exchange
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