TIDMAPI
RNS Number : 5050U
API Group PLC
03 December 2013
Press Release 3 December 2013
API Group plc
("API" or the "Group")
Interim Results
API Group plc (AIM:API), a leading manufacturer of specialist
foils and packaging materials, announces its interim results for
the six months ended 30 September 2013.
Financial Highlights
-- Dividend reinstated, reflecting confidence in Group's
prospects
-- Revenues of GBP56.9m, compared to GBP58.8m for the first
half of last year
-- Operating profits, before exceptional items, of GBP3.5m
(2012: GBP4.7m)
-- Profit before tax and exceptional items of GBP2.9m (2012:
GBP4.0 m)
-- Diluted earnings per share 3.8p (2012: 5.1p)
-- Improved results in the Foils businesses, despite disruption
from major change projects. Cost reduction programme
underway in Holographics to address trading losses.
Satisfactory results at Laminates but behind last year's
strong first half
-- Capital additions of GBP2.4m (2012: GBP3.0m) and net
debt slightly higher at GBP5.6m (2012: GBP5.2m)
-- Significant progress in restructuring the UK foils operation,
completing investment projects in Holographics and Foils
Americas and bringing the new laminates supply contract
up to full volumes
-- As previously indicated, the Board expects a stronger
second half and some improvement in results for the
year as a whole
-- Interim dividend of 0.7p per share, payable January
2014
Commenting on the results, API's Chief Executive, Andrew Turner
said:
"Whilst results were, as expected, behind last year's strong
first half comparatives, a number of important projects were
completed in the period designed to strengthen the operating
platform and enhance our proposition to customers.
These improvements, plus the cost reduction programme in
Holographics and scheduled capacity additions for both Foils
businesses, underpin our confidence in the Group's prospects and
the Board's decision to recommence dividend payments after a break
of more than ten years."
- Ends -
For further information:
API Group plc
Andrew Turner, Group Chief Executive Tel: +44 (0) 1625
650 334
Chris Smith, Group Finance Director www.apigroup.com
Numis Securities (Broker)
James Serjeant Tel: +44 (0) 20 7260
1000
www.numis.com
Cairn Financial Advisers (Nominated Adviser)
Tony Rawlinson / Avi Robinson Tel: +44 (0) 20 7148
7900
www.cairnfin.com
Media enquiries:
Abchurch
Henry Harrison-Topham / Quincy Allan Tel: +44 (0) 20 7398
7710
quincy.allan@abchurch-group.com www.abchurch-group.com
REPORT ON THE INTERIM RESULTS
FOR THE 6 MONTH PERIOD ENDED 30 SEPTEMBER 2013
GROUP INCOME STATEMENT
Financial statements, including figures for prior year
comparatives, have been prepared on the basis of the revised IAS19
pension accounting standard, further details of which are described
in note 1(c).
Group revenues for the six months to September 2013 were
GBP56.9m (2012: GBP58.8m), down 3.1% on the first half of last year
and 4.1% lower at constant exchange rates. Lower sales in Laminates
compared to a particularly strong first half last were partly
compensated by growth in Foils Europe.
Gross margin declined by 0.8%, to 22.2%, due primarily to lower
fixed cost recovery, higher freight and utility costs and the
impact of less favourable exchange rates on Euro-denominated sales.
These factors were partly mitigated by improved sales mix. Selling,
general and administration costs were GBP0.2m higher, predominantly
accounted for by increased sales and marketing expenditure and the
full year effect of the new divisional management structure
(separate management teams for Foils Europe and Holographics).
Costs in the two Foils businesses were impacted by significant
operational change projects, specifically the restructuring of
foils finishing and distribution operations in the UK and the
implementation of a new ERP system in the US. Higher expenditure on
overtime, sub-contract manufacture and outbound freight was
incurred to mitigate the impact of any disruption on supplies to
customers.
Pre-exceptional operating profits for the six month period came
in at GBP3.5m compared to GBP4.7m at the interim stage last year,
with an approximately equal impact on profits from lower sales and
higher costs. In terms of segment split, profits at Laminates and
Holographics were lower by GBP0.8m and GBP0.6m respectively, Foils
Americas was ahead by GBP0.1m and Foils Europe advanced by GBP0.2m.
Central costs were unchanged.
Compared to the second half of last year, sales and
pre-exceptional operating profits were ahead by 6.1% and 10%
respectively.
For the six months to 30 September 2013, exceptional charges of
GBP0.3m were incurred associated with the restructuring of UK Foils
operations. Exceptional costs last year amounted to GBP0.4m.
Net finance costs reduced by GBP0.1m to GBP0.6m as lower cash
interest costs, down from GBP0.5m to GBP0.3m, were partly offset by
an increase of GBP0.1m in non-cash interest charges relating to
defined benefit pension schemes, as per the new IAS19 accounting
standard.
A small tax credit of GBP0.02m comprised a current tax charge of
GBP0.2m in the UK and certain European countries offset by
additional recognition of net tax losses, predominantly in the
US.
Underlying earnings per share (diluted) of 3.8p compares to 5.1p
at the interim stage last year and 3.3p in last year's second
half.
REVIEW OF OPERATIONS
Laminates
Laminates delivered another solid performance, although results
were down against strong comparatives from the first half last
year.
Sales at GBP28.1m were 7.2% lower than last year and operating
profits were 19.8% lower at GBP3.3m, representing an operating
margin of 11.6%. The loss of volume on two key brands due to
packaging specification changes and a reduced allocation from a key
UK customer in the drinks sector was only partially compensated by
the ramp-up of the major new supply contract.
Compared to last year's second half, Laminates revenues were
13.2% higher and profits 33.0% ahead.
The business cleared a significant milestone as volumes on the
major new supply contract reached target levels after an extended
period of product development and qualification. The higher level
of core volume will increase the resilience of Laminates' trading
performance and compensate for the anticipated near term impact on
margins from production inefficiencies and a less favourable sales
mix.
Foils Europe
Foils Europe revenues increased by 9.0% over the first half last
year to GBP14.4m (6.3% ahead at constant FX rates) driven by solid
growth in key continental European territories of Italy, France and
Germany. Sales in Poland were ahead more than 200% after the
establishment of a new API-owned distribution channel in May
2012.
During the period, a reorganisation of the UK Foils business was
completed with the establishment of a new sales and distribution
hub in England, aimed at improving service levels to customers and
increasing penetration of the home market. This will enable the
facility at Livingston to focus on efficient manufacturing of high
quality foils for bulk supply to the distribution network. The
changes resulted in the loss of 25 jobs at Livingston and caused a
degree of disruption to operations with an estimated profit impact
in the period of GBP0.25m. Cost savings associated with the project
are expected to be at least GBP0.3m per annum.
Despite the disruption from the UK restructuring, higher sales
led to a 27.4% year-on-year increase in operating profits to
GBP0.9m; an operating margin of 6.3%.
Compared to last year's second half, revenues were 4.0% higher
(2.6% at constant FX) but profits declined by 29.4% due the impact
of the UK re-organisation, higher costs and a one-off adjustment to
customer rebates.
Foils Americas
Foils Americas revenues for the six months to 30 September 2013
were down 3.1% at GBP11.9m; 5.3% lower at constant exchange
rates.
The unit experienced some disruption from the implementation of
a new ERP system, which went live on April 1(st) 2013 followed by
an intense period of management focus on project delivery. Supply
interruptions in the first two months impacted sales to small
accounts which the business is working to recover now that the
operations have been re-stabilised. System benefits are already
evident in terms of supply chain management, control of inventory
level and margin management.
Despite additional project-related expenses, overall operating
costs were lower by GBP0.3m due to a non-repeat of last year's
accounting charge relating to an increase in the level of
inventory.
In spite of the internal challenges faced in the period,
operating profits increased slightly to GBP1.1m, representing an
operating margin of 8.8%.
Compared to last year's second half, revenues were 2.3% higher,
with a slightly better sales mix resulting in a 22.3% increase in
operating profits.
Holographics
Holographics total revenues declined by 9.7% to GBP4.5m due to
the loss of a long-standing supply contract to in-house manufacture
by the customer and adverse timing of orders with another key
account. Delays affected the commencement of a number of new
business developments, although sales of decorative holographic
products to sister API companies recovered strongly from last
year's second half.
Operating costs increased by GBP0.3m due to expenditure on the
new origination centre in the Czech Republic and higher sales and
marketing spend. As a result, the unit recorded an operating loss
of GBP0.5m compared to a marginal profit at the interim stage last
year.
Compared with last year's second half, sales were down 3.3%,
although losses increased by GBP0.2m due primarily to a
non-recurrence of accounting credits associated with changes in
inventory levels.
In view of the delays on new business developments, management
initiated a cost reduction program with the aim of returning the
business to a break-even position at the current level of sales by
mid way through the second half.
In the meantime, good progress has been made in executing the
previously-announced investment program designed to significantly
enhance the proposition to customers in the security and
authentication market. The Czech holographic origination centre is
now up and running, a number of key new pieces of equipment have
been successfully commissioned and the Salford production facility
has been awarded high level security accreditation by the
recognised industry body. After completing the short term cost
reduction plan, management's priority is to leverage the benefits
of these investments to grow third party revenues whilst at the
same time maximising capacity fill by exploiting available
opportunities for additional intercompany sales of decorative
holographic products.
DIVIDEND
In line with comments made in the Final Results announcement
released on 5 June 2013, the Board is pleased to confirm the
re-introduction of dividend payments to shareholders. Dividends
were last paid in 2001 and their re-instatement is recognition of
the improved financial health of the Group and the Board's
confidence in its long term prospects. A dividend of 0.7 pence per
share will be paid on 9 January 2014 to shareholders on the
register on 13 December 2013, with an Ex-dividend date of 11
December 2013.
CASH FLOW AND BORROWINGS
Net cash inflow from operating activities of GBP0.6m was below
the GBP2.7m for the same period last year as a result of lower
operating profits and an adverse movement in working capital.
Period-end working capital efficiency, measured by the ratio to
sales, was 0.7% adverse, at 11.2%. This, combined with a higher
exit rate of sales, meant that total working capital increased by
GBP1.6m when compared to one year earlier.
Capital expenditure included GBP0.8m of payments relating to
projects capitalised at the end of last financial year, the
addition of GBP1.3m of new assets and GBP0.3m of further investment
in the holographic origination joint venture. The total cash
capital expenditure of GBP2.4m compares to GBP3.0m for the same
period last year. Key projects included costs associated with the
new ERP system and deposits paid on new metallisers for the two
Foils businesses.
Group net debt of GBP5.6m compares to GBP5.2m at the interim
stage last year and GBP2.4m at 31 March 2013. Levels of debt have
remained under good control, with gearing at the period end of 23%
(2012: 21%) and a ratio of net debt to trailing 12 month EBITDA of
1.2x (2012: 0.9x).
The Group's main borrowing requirements have recently been
re-financed and facilities agreed with HSBC for the period to
December 2017. The new GBP13.5m committed facility benefits from
reduced interest margins, lower security requirements and less
demanding covenants compared with the previous arrangements. The US
business continues to be supported by funding from Wells Fargo,
extending to April 2015.
PENSION DEFICIT
The IAS19 calculated gross deficit on UK and US defined-benefit
pension plans reduced slightly to GBP12.7m from GBP13.3m at 31
March 2013. Favourable movement in bond yields and inflation
assumptions affecting liability valuation were mainly offset by
lower investment returns compared to scheme objectives, in line
with the performance of global equity markets. Associated deferred
tax assets reduced by GBP0.4m, mostly as a result of lower UK
corporation tax rates, leaving a net reported deficit of GBP10.1m
compared to GBP10.3m at March 2013.
The UK plan is currently completing its triennial funding
valuation as of 30 September 2013, the conclusion of which is
expected during the middle of 2014.
OUR PEOPLE
The Board continues to be grateful for the support and efforts
of the API workforce. The value of the contributions made by
employees to the ongoing success and development of the Group is
greatly appreciated.
OUTLOOK
In spite of a weaker first half, the Board still expects full
year results to show some progress over last year.
The Foils businesses are already benefiting from their
respective restructuring and ERP implementation projects completed
in the first half and both units are experiencing encouraging
levels of customer demand.
Continuation of the strong profit contribution from Laminates is
underpinned by healthier core volumes now that the major new supply
contract is fully on stream.
Holographics is well advanced with cost reduction measures aimed
at restoring the business to a breakeven position ahead of the
final quarter. Recovering lost ground in security and
authentication markets will take more time, but will be greatly
assisted by the recent investments in enhanced product capabilities
and security credentials.
Overall, the business is in much better shape after the progress
made during the first six months of the year. Opportunities for
further improvements in operational effectiveness, as well as
improving economic conditions, provide confidence in the outlook
for the Group in 2014/15 and beyond.
GROUP INCOME STATEMENT
for the six months ended 30 September
2013
Unaudited Unaudited Audited
6 months 6 months Year to
to to 31 March
30 September 30 September 2013
2013 2012
(restated(1) (restated(1)
) )
Note GBP'000 GBP'000 GBP'000
-------------- -------------- -------------
Revenue 2 56,897 58,782 112,426
Cost of sales (42,621) (43,726) (84,179)
-------------- -------------- -------------
Gross profit 14,276 15,056 28,247
Distribution costs (2,176) (2,104) (4,249)
Administrative expenses (excluding
exceptional items) (8,645) (8,291) (16,196)
-------------- -------------- -------------
Operating profit before exceptional
items 2 3,455 4,661 7,802
Exceptional items 3 (300) (394) (1,029)
-------------- -------------- -------------
Operating profit 3,155 4,267 6,773
Net finance costs 4 (567) (668) (1,207)
-------------- -------------- -------------
Profit before taxation 2,588 3,599 5,566
Tax credit/(expense) 5 20 (16) 19
Profit for the period 2,608 3,583 5,585
-------------- -------------- -------------
Earnings per share (pence)
Basic earnings per share on profit
for the period 6 3.5 4.9 7.6
Underlying basic earnings per
share on profit for the period 6 3.9 5.3 8.8
Diluted earnings per share on
profit for the period 6 3.4 4.6 7.2
Underlying diluted earnings per
share on profit for the period 6 3.8 5.1 8.4
-------------- -------------- -------------
(1) Restated in accordance with IAS 19 (revised) Employee
benefits. See Note 1 (c).
GROUP STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 September
2013
Unaudited Unaudited Audited
6 months to 6 months Year to
30 September to 31 March
2013 30 September 2013
2012
(restated(1) (restated(1)
) )
GBP'000 GBP'000 GBP'000
-------------- -------------- -------------
Profit for the period 2,608 3,583 5,585
-------------- -------------- -------------
Exchange differences on retranslation
of foreign operations (1,008) (192) 703
Change in fair value of effective
cash flow hedges 638 279 (639)
Actuarial (losses)/gains on defined
benefit pension plans 314 (961) (5,243)
Tax on items relating to components
of other comprehensive income (561) 31 1,228
-------------- -------------- -------------
Other comprehensive income for the
period, net of tax (617) (843) (3,951)
-------------- -------------- -------------
Total comprehensive income for the period
attributable to equity holders of the
Parent 1,991 2,740 1,634
-------------- -------------- -------------
(1) Restated in accordance with IAS 19 (revised) Employee
benefits. See Note 1 (c).
GROUP BALANCE SHEET
at 30 September 2013
Unaudited Unaudited Audited
30 September 30 September 31 March
2013 2012 2013
Note GBP'000 GBP'000 GBP'000
------------- ------------- ---------
Assets
Non-current assets
Property, plant and equipment 21,206 19,389 21,313
Intangible assets - goodwill 5,188 5,188 5,188
Investment in joint venture
interest 684 - 378
Financial assets 46 - 152
Deferred tax assets 6,198 5,498 6,617
33,322 30,075 33,648
------------- ------------- ---------
Current assets
Trade and other receivables 17,543 15,960 15,811
Inventories 12,925 12,929 12,864
Other financial assets 531 693 184
Cash and short-term deposits 8 1,476 6,342 6,189
32,475 35,924 35,048
------------- ------------- ---------
Total assets 65,797 65,999 68,696
------------- ------------- ---------
Liabilities
Current liabilities
Trade and other payables 20,081 20,116 22,428
Financial liabilities 9 6,769 10,934 3,766
Income tax payable 494 454 373
27,344 31,504 26,567
------------- ------------- ---------
Non-current liabilities
Financial liabilities 9 465 655 5,574
Deferred tax liabilities 287 359 211
Provisions 62 73 66
Deficit on defined benefit pension
plans 10 12,733 9,271 13,349
13,547 10,358 19,200
------------- ------------- ---------
Total liabilities 40,891 41,862 45,767
------------- ------------- ---------
Net assets 24,906 24,137 22,929
------------- ------------- ---------
Equity
Called up share capital 767 767 767
Share premium 7,136 7,136 7,136
Other reserves 8,816 8,816 8,816
Foreign exchange reserve (50) 63 958
Retained earnings 8,237 7,355 5,252
------------- ------------- ---------
Total shareholders' equity 24,906 24,137 22,929
------------- ------------- ---------
GROUP STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 September 2013
Equity Foreign Total
Share Share Other exchange Retained shareholders'
capital premium reserves reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- --------- --------- ---------- ---------- ---------- ---------------
At 1 April 2012 767 7,136 8,816 255 4,348 21,322
Profit for the period
(restated(1) ) - - - - 3,583 3,583
Other comprehensive
income for the period,
net of tax (restated(1)
) - - - (192) (651) (843)
Share-based payments - - - - 70 70
Tax relating to items
accounted for directly
through equity - - - - 5 5
-------------------------- --------- --------- ---------- ---------- ---------- ---------------
Balance at 30 September
2012 767 7,136 8,816 63 7,355 24,137
Profit for the period
(restated(1) ) - - - - 2,002 2,002
Other comprehensive
income for the period,
net of tax (restated(1)
) - - - 895 (4,003) (3,108)
Shares acquired by
Employee Benefit Trust - - (94) - - (94)
Transferred on exercise
of share options - - 94 - (94) -
Share-based payments - - - - 15 15
Tax relating to items
accounted for directly
through equity - - - - (23) (23)
-------------------------- --------- --------- ---------- ---------- ---------- ---------------
Balance at 31 March
2013 767 7,136 8,816 958 5,252 22,929
Profit for the period - - - - 2,608 2,608
Other comprehensive
income for the period,
net of tax - - - (1,008) 391 (617)
Shares acquired by
Employee Benefit Trust - - (32) - - (32)
Transferred on exercise
of share options - - 32 - (32) -
Share-based payments - - - - 18 18
-------------------------- --------- --------- ---------- ---------- ---------- ---------------
Balance at 30 September
2013 767 7,136 8,816 (50) 8,237 24,906
-------------------------- --------- --------- ---------- ---------- ---------- ---------------
(1) Restated in accordance with IAS 19 (revised) Employee
benefits. See Note 1 (c).
GROUP CASH FLOW STATEMENT
for the six months ended 30 September
2013
Unaudited Unaudited Audited
6 months to 6 months Year to
30 September to 31 March
2013 30 September 2013
2012
(restated(1) (restated(1)
) )
Note GBP'000 GBP'000 GBP'000
-------------- -------------- -------------
Operating activities
Group profit before tax from continuing
operations 2,588 3,599 5,566
Adjustments to reconcile Group profit
before tax to net cash flow from operating
activities:
Net finance costs 567 668 1,207
Pension scheme expenses 330 352 665
Depreciation of property, plant
and equipment 1,132 1,013 2,173
Profit on disposal of property,
plant and equipment (5) (2) (5)
Movement in fair value foreign
exchange contracts (7) (4) (38)
Share-based payments 18 70 85
Increase in inventories (458) (783) (361)
Increase in trade and other receivables (2,057) (656) (101)
(Decrease) / increase in trade
and other payables (1,478) (1,538) 68
Movement in provisions (4) (3) (10)
-------------- -------------- -------------
Cash generated from operations 626 2,716 9,249
Interest paid (226) (348) (583)
Pension contributions and scheme
expenses paid (858) (848) (1,625)
Income taxes paid (53) (24) (50)
-------------- --------------
Net cash flow from operating activities (511) 1,496 6,991
-------------- -------------- -------------
Investing activities
Interest received 1 2 10
Purchase of property, plant and
equipment (2,078) (2,999) (5,296)
Investment in joint venture (306) - (378)
Sale of property, plant and equipment 5 7 23
Net cash flow from investing activities (2,378) (2,990) (5,641)
-------------- -------------- -------------
Financing activities
Purchase of shares by Employee
Benefit Trust (32) - (94)
Repayment of borrowings (1,792) (1,343) (4,148)
Net cash flow from financing activities (1,824) (1,343) (4,242)
-------------- -------------- -------------
Decrease in cash and cash equivalents (4,713) (2,837) (2,892)
Effect of exchange rates on cash
and cash equivalents (68) (4) 25
Cash and cash equivalents at the
beginning of the period 5,955 8,822 8,822
-------------- -------------- -------------
Cash and cash equivalents at the
end of the period 8 1,174 5,981 5,955
-------------- -------------- -------------
(1) Restated in accordance with IAS 19 (revised) Employee
benefits. See Note 1 (c).
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1 (a) Corporate information
The consolidated interim financial statements of API Group plc
for the six months ended 30 September 2013 were authorised for
issue in accordance with a resolution of the directors on 2
December 2013.
API Group plc is a public limited company incorporated and
domiciled in England and Wales. The Company's shares are traded on
the AIM market of the London Stock Exchange.
The principal activities of the Group are the manufacture and
distribution of specialty foils, films and laminated materials.
(b) Basis of preparation
The interim consolidated financial statements of the Group for
the six months ended 30 September 2013 have been prepared in
accordance with IAS 34 Interim Financial Reporting, as adopted by
the European Union.
These interim consolidated financial statements are unaudited.
They do not constitute statutory accounts as defined in section 435
of the Companies Act 2006 and therefore do not include all the
information and disclosures required in the annual financial
statements and should be read in conjunction with the Group's
latest annual financial statements as at 31 March 2013 which were
prepared in accordance with International Financial Reporting
Standards as adopted by the EU. The audited annual financial
statements for the year ended 31 March 2013, which represent the
statutory accounts for that period have been filed with the
Registrar of Companies. The auditors reported on those accounts.
Their report was unqualified, did not draw attention to any matters
by way of emphasis and did not contain a statement under s498(2) or
(3) of the Companies Act 2006.
At 30 September 2013, the UK borrowing facilities were due to
expire on 1 July 2014. Since the balance sheet date, agreement has
been reached with HSBC Bank plc to enter into a committed revolving
facility amounting to GBP13.5m which terminates on 31 December
2017. The existing UK borrowings have been repaid. The US
facilities are due to be repaid in April 2015. Accordingly, and
after making appropriate enquiries, the Directors consider that
there is a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable
future. The Directors therefore continue to adopt the going concern
basis in preparing these financial statements.
(c) Significant accounting policies
The accounting policies adopted in the preparation of the
interim consolidated financial statements are consistent with those
followed in the preparation of the Group's annual financial
statements for the year ended 31 March 2013, except for the
adoption of IAS 19 (revised) with effect from 1 April 2013.
Comparative figures for the six months to 30 September 2012 and the
year to 31 March 2013 have been restated. The impact of adopting
the revised standard is described below.
IAS 19 (revised) Employee benefits
The key impact of IAS 19 (revised) is the removal of the
separate assumptions for expected return on plan assets and
discounting of scheme liabilities, replacing them with one single
discount rate for the net deficit. In addition, scheme
administration expenses (including the PPF levy) can no longer be
treated as part of the finance cost of the scheme liabilities and
must now be included in operating costs.
For the six months to 30 September 2013, total profit is
GBP180,000 lower and other comprehensive income is GBP180,000
higher than it would have been prior to the adoption of IAS 19
(revised). For the six months to 30 September 2012, restated total
profit is GBP101,000 lower and other comprehensive income is
GBP101,000 higher than it would have been prior to the adoption of
IAS 19 (revised). For the year to 31 March 2013, the restated total
profit is GBP190,000 lower and other comprehensive income is
GBP190,000 higher than it would have been prior to the adoption of
IAS 19 (revised). For the six months to 30 September 2013, the
impact of including scheme administration expenses in operating
costs is to reduce operating profit by GBP330,000 (30 September
2012: GBP352,000; 31 March 2013: GBP665,000). These costs are
included within Central costs for segmental reporting purposes.
As the Group has always recognised actuarial gains and losses
immediately, there is no effect on prior periods' defined benefit
obligation and the balance sheet disclosure.
2. SEGMENTAL INFORMATION
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 September 30 September 31 March
2013 2012 2013
(restated(1) (restated(1)
) )
GBP'000 GBP'000 GBP'000
-------------- -------------- -------------
Total revenue by origin
Laminates 28,097 30,339 55,163
Foils Europe 14,380 13,196 27,021
Foils Americas 11,927 12,310 23,972
Holographics 4,505 4,989 9,646
-------------- -------------- -------------
58,909 60,834 115,802
-------------- -------------- -------------
Inter-segmental revenue
Laminates - - 2
Foils Europe 334 490 757
Foils Americas 312 258 556
Holographics 1,366 1,304 2,061
-------------- -------------- -------------
2,012 2,052 3,376
-------------- -------------- -------------
External revenue by origin
Laminates 28,097 30,339 55,161
Foils Europe 14,046 12,706 26,264
Foils Americas 11,615 12,052 23,416
Holographics 3,139 3,685 7,585
56,897 58,782 112,426
-------- -------- --------
Segment result
Operating profit
Laminates 3,260 4,063 6,515
Foils Europe 901 707 1,984
Foils Americas 1,055 1,030 1,893
Holographics (548) 90 (275)
-------- -------- --------
Segment result 4,668 5,890 10,117
Central costs(1) (1,213) (1,229) (2,315)
Total operating profit before
exceptional items 3,455 4,661 7,802
-------- -------- --------
(1) Restated in accordance with IAS 19 (revised) Employee
benefits. See Note 1 (c).
3. EXCEPTIONAL ITEMS
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 September 30 September 31 March
2013 2012 2013
GBP'000 GBP'000 GBP'000
-------------- -------------- ----------
Restructuring of operating
businesses (300) (224) (488)
Fees associated with the
formal sale process - (170) (541)
-------------- -------------- ----------
(300) (394) (1,029)
-------------- -------------- ----------
Restructuring of operating businesses relates primarily to
redundancy and other costs associated with business restructuring
in the Foils Europe and Holographics businesses.
4. FINANCE REVENUE AND FINANCE COSTS
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 September 30 September 31 March
2013 2012 2013
(restated(1) (restated(1)
) )
GBP'000 GBP'000 GBP'000
-------------- -------------- -------------
Finance revenue
Interest receivable on bank
and other short term deposits 1 1 2
Other interest receivable - 1 8
1 2 10
-------------- -------------- -------------
Finance costs
Interest payable on bank
loans and overdrafts (280) (463) (804)
Other interest payable (8) (9) (17)
Net interest expense on defined
benefit pension plans (280) (198) (396)
-------------- -------------
(568) (670) (1,217)
-------------- -------------- -------------
Net finance costs (567) (668) (1,207)
-------------- -------------- -------------
5. TAXATION
Unaudited Unaudited Audited
6 months to 6 months to Year to
30 September 30 September 31 March
2013 2012 2013
(restated(1) (restated(1)
) )
GBP'000 GBP'000 GBP'000
-------------- -------------- -------------
Current income tax
UK corporation tax - current
year charge (127) (198) (75)
Overseas tax - current year
charge (54) (14) (80)
(181) (212) (155)
-------------- -------------- -------------
Deferred tax
Origination and reversal
of temporary differences 237 196 178
Effect of change in tax rate (36) - (4)
-------------- -------------- -------------
201 196 174
-------------- -------------- -------------
Total credit/(charge) in
the Income Statement 20 (16) 19
-------------- -------------- -------------
(1) Restated in accordance with IAS 19 (revised) Employee
benefits. See Note 1 (c).
6. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net
profit for the year attributable to ordinary equity holders of the
Parent by the weighted average number of ordinary shares
outstanding during the year.
Diluted earnings per share is calculated by dividing the net
profit attributable to ordinary equity holders of the Parent by the
weighted average number of ordinary shares outstanding during the
year plus the weighted average number of ordinary shares that would
be issued on the conversion of all dilutive potential ordinary
shares into ordinary shares.
Earnings used to calculate adjusted basic and diluted earnings
per share exclude exceptional items, net of tax.
The following reflects the income and share data used in the
basic and diluted earnings per share computations:
Unaudited Unaudited Audited
6 months 6 months Year to
to to 31 March
30 September 30 September 2013
2013 2012
(restated(1) (restated(1)
) )
GBP'000 GBP'000 GBP'000
Net profit attributable to
equity holders of the Parent 2,608 3,583 5,585
Adjustments to arrive at underlying
earnings:
Exceptional items 300 394 1,029
Tax credit on exceptional
items - (32) (103)
-------------- -------------- -------------
Underlying earnings 2,908 3,945 6,511
-------------- -------------- -------------
Unaudited Unaudited Audited
6 months 6 months Year to
to to 31 March
30 September 30 September 2013
2013 2012
No No No
-------------- -------------- -----------
Basic weighted average number
of ordinary shares 73,786,981 73,748,730 73,748,730
Dilutive effect of employee
share options and contingent
shares 3,376,309 3,614,250 3,600,787
Diluted weighted average number
of ordinary shares 77,163,290 77,362,980 77,349,517
-------------- -------------- -----------
The calculation of the basic weighted average number of shares
excludes the shares owned by the API Group plc No.2 Employee
Benefit Trust (30 September 2013:2,750,000; 30 September 2012 and
31 March 2013: 3,000,000). These contingent shares are included in
the calculation of the diluted weighted average number of
shares.
Unaudited Unaudited Audited
6 months 6 months Year to
to to 31 March
30 September 30 September 2013
2013 2012
(restated(1) (restated(1)
) )
Earnings per share pence pence pence
-------------- -------------- -------------
Basic earnings per share 3.5 4.9 7.6
Underlying basic earnings
per share 3.9 5.3 8.8
Diluted earnings per share 3.4 4.6 7.2
Underlying diluted earnings
per share 3.8 5.1 8.4
-------------- -------------- -------------
(1) Restated in accordance with IAS 19 (revised) Employee
benefits. See Note 1 (c).
7. DIVIDENDS
An interim dividend of 0.7 pence per share (2012: nil) was
approved by the Board on 2 December 2013, payable on 9 January 2014
to equity holders on the register at the close of business on 13
December 2013 with an Ex-Dividend date of 11 December 2013. This
dividend has not been provided for in these financial
statements.
8. CASH AND CASH EQUIVALENTS
Unaudited Unaudited Audited
30 September 30 September 31 March
2013 2012 2013
GBP'000 GBP'000 GBP'000
------------- ------------- ---------
Cash and short-term deposits 1,476 6,342 6,189
Bank overdrafts (302) (361) (234)
------------- ------------- ---------
1,174 5,981 5,955
------------- ------------- ---------
9. FINANCIAL LIABILITIES
Unaudited Unaudited Audited
30 September 30 September 31 March
2013 2012 2013
GBP'000 GBP'000 GBP'000
------------- ------------- ---------
Current
Bank overdrafts 302 361 234
Current instalments due on
bank loans 6,296 10,527 2,957
Interest rate swaps 4 46 16
Forward currency exchange
contracts 167 - 559
------------- ------------- ---------
6,769 10,934 3,766
------------- ------------- ---------
Non-current
Non-current instalments due
on bank loans 465 653 5,574
Interest rate swaps - 2 -
465 655 5,574
------------- ------------- ---------
10. DEFINED BENEFIT PENSION PLAN DEFICIT
Unaudited Unaudited Audited
30 September 30 September 31 March
2013 2012 2013
GBP'000 GBP'000 GBP'000
------------- ------------- ---------
United Kingdom
Fair value of scheme assets 77,231 72,671 78,557
Present value of scheme liabilities (89,209) (80,933) (90,880)
(11,978) (8,262) (12,323)
------------- ------------- ---------
United States
Fair value of scheme assets 2,011 1,793 2,055
Present value of scheme liabilities (2,766) (2,802) (3,081)
(755) (1,009) (1,026)
------------- ------------- ---------
Net pension liability (12,733) (9,271) (13,349)
------------- ------------- ---------
The movements in the net pension
liability are as follows:
Opening liability 13,349 8,618 8,618
Scheme expenses recognised
in operating profit 330 352 665
Net cost recognised in finance
costs 280 198 396
Taken to Statement of Comprehensive
Income (314) 961 5,243
Contributions from and scheme
expenses borne by employers (850) (848) (1,625)
Exchange differences (62) (10) 52
Closing liability 12,733 9,271 13,349
------------- ------------- ---------
The main assumptions used in valuing the present value of the
scheme liabilities in the UK are as follows:
Rate of increases in pensions
in payment and deferred pensions 2.30% 1.60% 2.35%
Inflation (CPI) 2.30% 1.50% 2.35%
Discount rate 4.40% 4.40% 4.30%
11. CAPITAL COMMITMENTS
At 30 September 2013 there were contracted amounts not provided
in these financial statements of GBP2,079,000 (30 September 2012:
GBP1,157,000; 31 March 2013: GBP904,000). The capital commitments
at 30 September 2013 included GBP1,875,000 in respect of two
metallisers for the Foils Europe and Foils Americas divisions
respectively. These are expected to be delivered early in the
financial year commencing on 1 April 2014.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UGGGUPUPWGBP
Abrdn Property Income (LSE:API)
Historical Stock Chart
From Jun 2024 to Jul 2024
Abrdn Property Income (LSE:API)
Historical Stock Chart
From Jul 2023 to Jul 2024
