TIDMASY
RNS Number : 0517P
Andrews Sykes Group PLC
28 September 2011
Andrews Sykes Group plc
28 September 2011
Interim Financial Statements for the six months to 30 June
2011
6 months ended 6 months ended
30 June 2011 30 June 2010
Andrews Sykes Group plc (unaudited) (unaudited)
Summary of Results GBP'000 GBP'000
Revenue from continuing operations 27,717 27,573
Normalised EBITDA* from continuing
operations 7,784 8,851
Normalised operating profit ** 5,930 6,816
Profit for the financial period 4,116 5,225
Basic earnings per share (pence) 9.58p 11.83p
Net funds 7,920 2,762
* Earnings Before Interest, Taxation, Depreciation, profit on
the sale of property, plant and equipment, Amortisation and
non-recurring items.
** Operating profit before non-recurring items as reconciled on
the consolidated income statement.
Andrews Sykes Group plc
Chairman's Statement
Overview
The group's revenue for the six months ended 30 June 2011 was
GBP27.7 million which was almost the same as last year's figure of
GBP27.6 million. The group's normalised operating profit* fell by
GBP0.9 million from GBP6.8 million in the first half of 2010 to
GBP5.9 million in the current period.
The group continues to generate strong cash flows. As at 30 June
2011 the group has net funds of GBP7.9 million, an increase of
GBP3.0 million compared with 31 December 2010 and an increase of
GBP5.2 million compared with the position as at 30 June 2010. This
clearly demonstrates the group's strong positive cash flow and is
after share buyback payments of GBP1.1 million.
Management has been mindful of the need to maintain the
operational structure of the business and to ensure that this is
not damaged by unnecessary cuts in expenditure. Our hire fleet
continues to be well maintained and the group has spent GBP3.0
million on new plant and equipment in the six months under review.
This is necessary to ensure that we remain in a strong position
ready to take advantage of any business opportunities whenever they
arise.
Operations review
Our main hire and sales business in the UK and Northern Europe
has been adversely affected by the mild weather at the end of 2010
/ 11 winter which resulted in an early end to the heating season.
Whilst May and June saw some dry and warm weather it was never hot
enough to significantly stimulate our air conditioning business
which remained flat.
During the period we opened our fourth Dutch depot in the North
East of the country. This has strengthened our market leading
position in the Netherlands and will provide a platform for future
expansion in the area.
Our Belgian subsidiary, which was opened as a low cost based
operation in 2007, traded well and provided a significantly
improved contribution to operating profit in the period. The
business continues to develop and become more self-sufficient and
further opportunities are seen as the market continues to grow.
In June we opened a new low cost based operation in Italy
following the business model that we successfully implemented in
Belgium. Although at a very early stage, management are confident
that this will provide good opportunities for the years ahead.
Overall, our UK installation business performed in line with
last year albeit at relatively modest levels compared with the rest
of the group.
Our business in the Middle East continues to suffer from the
economic downturn in the region although we have recently seen some
improvements in trading, particularly in Abu Dhabi. Debt collection
remains a concern and it has once again been necessary to increase
the level of bad debt provision to ensure that adequate reserves
are held at the end of the period. This area remains a priority for
management and we are currently making more improvements in this
area.
Profit for the financial period and earnings per share
The above GBP0.9 million decrease in operating profit together
with an adverse movement in the euro sterling exchange rate, which
resulted in an inter company foreign exchange loss of GBP0.2
million compared with a profit of GBP0.4 million last period, were
the main reasons for the decrease in the profit for the financial
period which, after tax, fell by GBP1.1 million from GBP5.2 million
in the first half of 2010 to GBP4.1 million in the current period.
Basic earnings per share fell by 19% to a still creditable 9.83
pence for the six month period.
Dividends
No interim dividends have been declared in the period under
review. The Board continues to adopt the policy of returning value
to shareholders whenever possible and accordingly the decision
regarding an interim dividend will be taken later in the year in
the light of profitability and cash resources.
Share buyback programme
The Board continues to believe that shareholder value will be
optimised by the purchase by the company, when appropriate, of its
own shares.
During the six months ended 30 June 2011 a total of 431,216
ordinary shares were purchased for cancellation for a total
consideration of GBP0.9 million. Total cash outflow for share
buybacks was GBP1.1 million as this includes the payment of GBP0.2
million in respect of share purchases made at the end of last year.
These purchases enhanced earnings per share and were for the
benefit of all shareholders.
The directors confirm that they intend to continue to actively
pursue this policy and any shareholder who is considering taking
advantage of the share buyback programme is invited to contact
their broker, bank manager, solicitor, accountant or other
independent financial advisor authorised under the Financial
Services and Markets Act 2000, in order to contact Brewin Dolphin
Limited who are operating the buyback programme on behalf of the
company.
Outlook
Trading conditions in the third quarter to date have been
challenging for our main UK hire and sales business. The summer has
not been hot enough to stimulate demand for our all important air
conditioning business. Trading conditions in the Middle East remain
challenging and will continue to do so for the remainder of
2011.
Nevertheless our business remains strong and cash generative.
Our specialist hire divisions continue to perform well and we will
continue to follow our policies of investing in both these and our
traditional core products as well as developing our non-seasonal
businesses.
Overall the Board is cautiously anticipating a reasonable
performance for the rest of 2011.
JG Murray
Chairman
27 September 2011
* Operating profit before non-recurring items as reconciled on
the consolidated income statement.
Andrews Sykes Group plc
Consolidated Income Statement
For the 6 months ended 30 June 2011 (unaudited)
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 27,717 27,573 55,951
Cost of Sales (12,533) (11,883) (24,015)
--------- --------- -------------
Gross Profit 15,184 15,690 31,936
Distribution Costs (4,642) (4,518) (9,219)
Administrative expenses: - Recurring (4,612) (4,356) (8,775)
-
Non-recurring - 164 164
--------- --------- -------------
- Total (4,612) (4,192) (8,611)
--------- --------- -------------
Operating Profit 5,930 6,980 14,106
----------------------------------------------------- --------- --------- -------------
Normalised EBITDA*
Depreciation and impairment losses 7,784 8,851 17,721
Profit on the sale of plant and (2,092) (2,281) (4,239)
equipment 238 246 460
--------- --------- -------------
Normalised operating profit 5,930 6,816 13,942
Profit on the sale of property - 164 164
--------- --------- -------------
Operating profit 5,930 6,980 14,106
--------- --------- -------------
Income from other participating
interests
Finance income - - 400
Finance costs 888 843 1,844
Inter company foreign exchange (974) (1,103) (2,144)
gains and losses (197) 395 168
--------- --------- -------------
Profit before taxation 5,647 7,115 14,374
Taxation (1,531) (1,890) (3,812)
Profit for the financial period 4,116 5,225 10,562
--------- --------- -------------
There were no discontinued operations in any of the
above periods.
Earnings per share from continuing
operations
Basic (pence) 9.58p 11.83p 24.19p
Diluted (pence) 9.58p 11.83p 24.18p
Dividends paid per equity share 0.00p 0.00p 11.10p
(pence)
*Earnings Before Interest, Taxation, Depreciation, profit on
the sale of property, plant and equipment, Amortisation and
non-recurring items.
Andrews Sykes Group plc
Consolidated Balance Sheet
As at 30 June 2011 (unaudited)
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment
Lease prepayments 13,154 12,543 11,817
Trade investments 57 58 58
Deferred tax asset 164 164 164
Retirement benefit pension 717 1,238 721
surplus 2,411 - 1,990
--------- ---------- ------------
16,503 14,003 14,750
--------- ---------- ------------
Current assets
Stocks 3,919 4,117 4,032
Trade and other receivables 13,640 13,723 15,917
Cash and cash equivalents 22,632 23,716 25,709
--------- ---------- ------------
40,191 41,556 45,658
--------- ---------- ------------
Current liabilities
Trade and other payables
Current tax liabilities (9,206) (7,521) (10,143)
Bank loans (1,689) (1,980) (2,274)
Obligations under finance (6,000) (6,000) (6,000)
leases (203) (261) (203)
Provisions (13) (13) (13)
Derivative financial instruments - - (7)
--------- ---------- ------------
(17,111) (15,775) (18,640)
--------- ---------- ------------
Net current assets 23,080 25,781 27,018
--------- ---------- ------------
Total assets less current
liabilities 39,583 39,784 41,768
Non-current liabilities
Bank loans
Obligations under finance (8,000) (14,000) (14,000)
leases (475) (628) (553)
Provisions (41) (53) (47)
Derivative financial instruments (34) (65) (41)
--------- ---------- ------------
(8,550) (14,746) (14,641)
--------- ---------- ------------
Net assets 31,033 25,038 27,127
--------- ---------- ------------
Equity
Called-up share capital 427 431
Share premium 13 434 -
Retained earnings 27,082 - 21,988 23,607
Translation reserve 3,260 2,585 2,842
Other reserves 241 234 237
Surplus attributable to equity
holders of the parent 31,023 25,241 27,117
Minority interest 10 10 10
Total Equity 31,033 25,251 27,127
--------- ---------- ------------
6 months 6 months 12 months
Andrews Sykes Group plc ended ended ended
Consolidated Cash Flow Statement 30 June 30 June 31 December
For the 6 months ended 30 June 2011 2011 2010 2010
(unaudited) GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 8,783 8,856 17,763
Interest paid (218) (292) (503)
Net UK corporation tax paid (1,886) (843) (2,113)
Net withholding tax paid - - (119)
Overseas tax paid (313) (862) (1,165)
-------- -------- ------------
Net cash inflow from operating activities 6,366 6,859 13,863
-------- -------- ------------
Investing activities
Dividends received from participating
interests (trade investments)
Movements in ring fenced bank deposit - - 400
accounts - 9,000 9,000
Sale of assets held for sale - 390 390
Sale of plant and equipment 330 344 643
Purchase of property, plant & equipment (2,977) (1,014) (1,745)
Interest received 201 73 168
-------- -------- ------------
Net cash (outflow) / inflow from investing
activities (2,446) 8,793 8,856
-------- -------- ------------
Financing activities
Loan repayments (6,000) (9,000) (9,000)
Finance lease capital repayments (78) (130) (263)
Equity dividends paid - - (4,800)
Purchase of own shares (1,113) (1,053) (1,184)
Issue of new shares 13 - -
-------- -------- ------------
Net cash outflow from financing activities (7,178) (10,183) (15,247)
-------- -------- ------------
Net (decrease) / increase in cash
and cash equivalents (3,258) 5,469 7,472
Cash and cash equivalents at beginning
of period 25,709 18,150 18,150
Effect of foreign exchange rate changes 181 97 87
-------- -------- ------------
Cash and cash equivalents at end of
period 22,632 23,716 25,709
-------- -------- ------------
Reconciliation of net cash flow to movement in net funds in the
period
Net (decrease) / increase in cash
and cash equivalents (3,258) 5,469 7,472
Cash outflow from decrease in debt 6,078 9,130 9,263
Movements in ring fenced bank deposit
accounts - (9,000) (9,000)
Non cash movements re finance leases - (116) (116)
Non cash movements in the fair value
of derivative instruments 14 (10) 7
Movement in net funds during the period 2,834 5,473 7,626
Opening net funds / (debt) at the
beginning of period 4,905 (2,808) (2,808)
Effect of foreign exchange rate changes 181 97 87
Closing net funds at the end of period 7,920 2,762 4,905
------- ------- -------
Andrews Sykes Group plc
Consolidated Statement Of Comprehensive Total Income
(CSOCTI)
For the 6 months ended 30 June 2011 (unaudited)
6
months 6 months 12 months
ended ended ended 31
30 June 30 June December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Profit for the financial period 4,116 5,225 10,562
------- -------- ---------
Other comprehensive income: Currency
translation differences on foreign
currency net investments Defined benefit 417 (306) (99)
plan actuarial gains and losses Deferred 359 (14) 1,964
tax on other comprehensive income (73) 4 (530)
------- -------- ---------
Other comprehensive income for the period
net of tax 703 (316) 1,335
------- -------- ---------
Total comprehensive income for the period 4,819 4,909 11,897
------- -------- ---------
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
1. General information
Basis of preparation
These interim financial statements have been prepared in
accordance with International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS) as adopted by
the European Union and with the Companies Act 2006.
The information for the 12 months ended 31 December 2010 does
not constitute the group's statutory accounts for 2010 as defined
in Section 434 of the Companies Act 2006. Statutory accounts for
2010 have been delivered to the Registrar of Companies. The
Auditor's report on those accounts was unqualified and did not
contain statements under Section 498(2) or (3) of the Companies Act
2006. These interim financial statements, which were approved by
the Board of Directors on 27 September 2011, have not been audited
or reviewed by the auditors.
The interim financial statement has been prepared using the
historical cost basis of accounting except for:
i) Properties held at the date of transition to IFRS which are
stated at deemed cost;
ii) Assets held for sale which are stated at the lower of fair
value less anticipated disposal costs and carrying value and
iii) Derivative financial instruments (including embedded
derivatives) which are valued at fair value.
Functional and presentational currency
The financial statements are presented in pounds Sterling
because that is the functional currency of the primary economic
environment in which the group operates.
2. Accounting policies
These interim financial statements have been prepared on a
consistent basis and in accordance with the accounting policies set
out in the group's Annual Report and Financial Statements 2010.
Andrews Sykes Group plc Notes to the
consolidated interim financial statements
For the 6 months ended 30 June 2011
(unaudited)
Revenue
An analysis of the group's revenue
3 is as follows:
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Continuing operations
Hire 21,699 22,566 45,155
Sales 3,909 3,048 6,654
Installations 2,109 1,959 4,142
Group consolidated revenue from the
sale of goods and provision of services 27,717 27,573 55,951
-------- -------- ------------
4 Taxation
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Current tax UK corporation tax
Adjustments in respect of prior 1,348 1,691 3,261
periods - 2 (49)
-------- -------- ------------
Overseas tax 1,348 1,693 3,212
Adjustments to overseas tax in respect 290 320 671
of prior periods - 68 19
Withholding tax - - 119
-------- -------- ------------
Total current tax charge 1,638 2,081 4,021
-------- -------- ------------
Deferred tax Deferred tax on the
origination and reversal of temporary
differences Adjustments in respect of (107) (191) (213)
prior periods - - 4
-------- -------- ------------
Total deferred tax credit (107) (191) (209)
-------- -------- ------------
Total tax charge for the financial
period attributable to continuing
operations 1,531 1,890 3,812
-------- -------- ------------
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
Taxation (continued)
The tax charge for the financial period can be reconciled to
the profit before tax per the income statement multiplied by
the standard effective annualised corporation tax rate in the
4 UK of 26.5% (June 2010 and December 2010: 28%) as follows:
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Profit before taxation from continuing
and total operations 5,647 7,115 14,374
--------- --------- -------------
Tax at the UK effective annualised
corporation tax rate of 26.5% (June
2010 and December 2010: 28%)
Effects of: Expenses not deductible
for tax purposes Capital gain
sheltered by capital losses and
indexation allowance Utilisation of
trading losses brought forward 1,496 4,025
Effects of different tax rates of 65 1,992 130
subsidiaries operating abroad - 44 (115)
Withholding tax Non-taxable income (15) (25) -
from other participating interests (65) - (256)
Effect of change in rate of - (191) 119
corporation tax Adjustments to tax - - (112)
charge in respect of previous 50 - 47
periods - - 70 (26)
--------- --------- -------------
Total tax charge for the financial
period 1,531 1,890 3,812
--------- --------- -------------
The total effective tax charge for the financial period
represents the best estimate of the weighted average annual
effective tax rate expected for the full financial year applying
tax rates that have been substantively enacted by the balance sheet
date. Accordingly UK corporation tax has been provided at 26.5%;
the reduction to 26% for the tax year ending 31 March 2012 having
been substantially enacted on 29 March 2011; and UK deferred tax
has been provided at 26% being the rate substantially enacted at
the balance sheet date at which the timing differences are expected
to reverse.
In accordance with IAS 12 no account has been taken in these
interim financial statements of the 2011 Finance Act that was
substantively enacted on 5 July 2011 as this was after the balance
sheet date. This Act provided for the further reduction in the rate
of UK corporation tax from 26% to 25% for the tax year commencing 1
April 2012. It is estimated that if the rate change from 26% to 25%
had been substantively enacted on or before the balance sheet date
it would have had the effect of reducing the deferred tax asset
recognised at that date by approximately GBP28,000 and it will
reduce the group's future corporation tax charge accordingly.
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
5 Earnings per share
Basic earnings per share
The basic figures have been calculated by reference to the
weighted average number of ordinary shares
in issue and the earnings as set out below. There are no discontinued
operations in any period.
6 months ended 30 June 2011
------------------------------
Continuing
earnings Number
GBP'000 of shares
Basic earnings/weighted average
number of shares 4,116 42,962,764
--------------
Basic earnings per ordinary share
(pence) 9.58p
6 months ended 30 June 2010
------------------------------
Continuing
earnings Number
GBP'000 of shares
Basic earnings/weighted average
number of shares 5,225 44,156,707
--------------
Basic earnings per ordinary share
(pence) 11.83p
12 months ended 31 December
2010
------------------------------
Continuing
earnings Number
GBP'000 of shares
Basic earnings/weighted average
number of shares 10,562 43,670,777
--------------
Basic earnings per ordinary share
(pence) 24.19p
Diluted earnings per share
The calculation of the diluted earnings per ordinary share
in the previous periods is based on the profits and shares
as set out in the tables below. There are no dilutive instruments
outstanding as at 30 June 2011 and there are no discontinued
operations in any period.
6 months ended 30 June 2010
------------------------------
Continuing
earnings Number
GBP'000 of shares
Basic earnings/weighted average
number of shares
Weighted average number of shares
under option
Number of shares that would have 44,156,707
been issued at fair value to satisfy 15,000
the above options 5,225 (12,853)
-------------- --------------
Earnings / diluted weighted average
number of shares 5,225 44,158,854
-------------- --------------
Diluted earnings per ordinary share
(pence) 11.83p
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
5 Earnings per share (continued)
Diluted earnings per share (continued)
12 months ended 31 December
2010
------------------------------
Basic earnings/weighted average
number of shares
Weighted average number of shares Number
under option Continuing of shares
Number of shares that would have earnings 43,670,777
been issued at fair value to satisfy GBP'000 15,000
the above options 10,562 (11,952)
-------------- --------------
Earnings/diluted weighted average
number of shares 10,562 43,673,825
-------------- --------------
Diluted earnings per ordinary share 24.18p
(pence)
6 Dividend payments
The directors have not declared any interim dividends in respect
of either the period under review or the 6 month period ended
30 June 2010. On 9 November 2010 the directors declared an
interim dividend of 11.1 pence per ordinary share and the
total amount of GBP4,800,000 was paid to shareholders on the
register as at 19 November 2010 on 10 December 2010.
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
Retirement benefit obligations - Defined benefit pension
7 scheme
The group closed the UK group defined benefit pension scheme
to future accrual as at 29 December 2002. The assets of the
defined benefit pension scheme continue to be held in a separate
trustee administered fund.
As at 30 June 2011 the group had a net defined benefit pension
scheme surplus, calculated in accordance with IAS 19 using
the assumptions as set out below, of GBP2,411,000 (June 2010:
GBP22,000; 31 December 2010: GBP1,990,000). The asset has
been recognised in the financial statements as at 30 June
2011 and 31 December 2010 as the directors are satisfied
that it is recoverable in accordance with IFRIC14. The asset
was not recognised as at 30 June 2010 on the grounds of materiality.
The pension scheme trustees are currently carrying out a
full actuarial funding valuation, the results of which have
not yet been finalised and agreed with the company. The trustees
normally have until 31 March 2012 to complete this process.
In the meantime the group continues to make contributions
in accordance with the previously agreed schedule of contributions
of GBP10,000 per month to cover expenses of the scheme.
Assumptions used to calculate the scheme surplus
The last full actuarial valuation was carried out as at 31
December 2007. A qualified independent actuary has updated
the results of this valuation to calculate the position as
disclosed below.
The major assumptions used in this valuation to determine
the present value of the scheme's defined benefit obligation
were as follows:
30 June 30 June 31 December
2011 2010 2010
Rate of increase in
pensionable salaries Rate of
increase in pensions in
payment Discount rate applied
to scheme liabilities N/A N/A N/A
Inflation assumption - RPI 3.40% 3.05% 3.30%
Inflation assumption - CPI 5.50% 5.35% 5.50%
for the first 6 years 3.60% 3.15% 3.50%
Inflation assumption - CPI 2.40% N/A 2.50%
after the first 6 years 2.40% N/A 3.00%
From 1 January 2011, the government amended the basis for
statutory increases to deferred pensions and pensions in
payment. Such increases are now based on inflation measured
by the Consumer Price Index (CPI) rather than the Retail
Price Index (RPI). Having reviewed the scheme rules and considered
the impact of the change on this pension scheme, the directors
consider that future increases to (i) all deferred pensions
and (ii) Guaranteed Minimum Pensions accrued between 6 April
1988 and 5 April 1997 and currently in payment will be based
on CPI rather than RPI. Accordingly, this assumption was
adopted as at 31 December 2010; in prior periods it was assumed
that such pension increases would be linked to RPI. It has
been assumed in all periods that all other pension increases
will be linked to RPI.
Assumptions regarding future mortality experience are set
based on advice in accordance with published statistics.
The current mortality table used is PA92YOBMC+2 at all the
above ends.
The assumed average life expectancy in years of a pensioner
retiring at the age of 65 given by the above tables is as
follows:
30 June 30 June 31 December
2011 2010 2010
21.3
years
Male, current age 45 21.4 years 24.1 21.3 years
Female, current age 45 24.1 years years 24.1 years
Andrews Sykes Group plc
Notes to the consolidated interim financial
statements
For the 6 months ended 30 June 2011 (unaudited)
Retirement benefit obligations - Defined benefit pension
scheme (continued)
Valuations
The fair value of the scheme's assets, which are not intended
to be realised in the short term and may be subject to significant
change before they are realised, and the present value of
the scheme's liabilities which are derived from cash flow
projections over long periods and are inherently uncertain,
7 were as follows:
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Total fair value of plan assets
Present value of defined benefit
funded obligation calculated in 31,149 28,926 30,733
accordance with stated assumptions (28,738) (28,904) (28,743)
--------- --------- ------------
Surplus in the scheme calculated in
accordance with stated assumptions 2,411 22 1,990
Net pension asset not recognised - (22) -
--------- --------- ------------
Pension asset recognised in the
balance sheet 2,411 - 1,990
--------- --------- ------------
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
Retirement benefit obligations - Defined benefit pension
scheme (continued)
The movement in the fair value of the scheme's assets over
7 the reporting period was as follows:
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Fair value of plan assets at the
start of the period Expected
return on plan assets Actuarial 30,733 28,936 28,936
gains / (losses) recognised in 774 770 1,546
the CSOCTI Employer 157 (221) 1,309
contributions - normal Benefits 60 60 120
paid (575) (619) (1,178)
---------- --------- -------------
Fair value of plan assets at
the end of the period 31,149 28,926 30,733
---------- --------- -------------
The movement in the present value of the defined benefit
obligation during the period was as follows:
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Opening present value of defined
benefit funded obligation
calculated in accordance with
stated assumptions Interest on
defined benefit obligation
Actuarial gain / (loss) (28,743) (28,862) (28,862)
recognised in the CSOCTI (772) (816) (1,640)
calculated in accordance with 202 155 581
stated assumptions Benefits paid 575 619 1,178
--------- --------- -------------
Closing present value of defined
benefit funded obligation
calculated in accordance with
stated assumptions Net pension (28,738) (28,904) (28,743)
asset not recognised - (22) -
--------- --------- -------------
Present value of defined benefit
funded obligation at the end of
the period (28,738) (28,926) (28,743)
--------- --------- -------------
Amounts recognised in the income
statement
The amounts credited / (charged)
in the income statement were:
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Expected return on pension scheme
assets credited within finance
income Interest on pension scheme
liabilities charged within 774 770 1,546
finance costs (772) (816) (1,640)
--------- --------- -------------
Net pension interest credit /
(charge) Settlements and 2 (46) (94)
curtailments - - -
--------- --------- -------------
Net pension credit / (charge) in
the income statement 2 (46) (94)
--------- --------- -------------
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
Retirement benefit obligations - Defined benefit pension
scheme (continued)
Actuarial gains and losses recognised in the consolidated
statement of comprehensive total
income (CSOCTI)
7 The amounts credited / (charged) in the CSOCTI were:
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Actual return less expected return
on scheme assets
Experience gains and losses arising
on plan obligation
Changes in demographic and financial 157 (221) 1,309
assumptions underlying the present (65) 772 498
value of plan obligations 267 ( 617) 83
------------- -------- -------------
Actuarial gain / (loss) calculated
in accordance with stated assumptions 359 (66) 1,890
Pension asset not recognised
Reverse provision re non-recognition - (22) -
of pension scheme asset - 74 74
------------- -------- -------------
Actuarial gain /(loss) recognised
in the CSOCTI 359 (14) 1,964
------------- -------- -------------
Cumulative actuarial loss recognised
in the CSOCTI (2,127) (4,464) (2,486)
------------- -------- -------------
8 Called-up share capital
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Issued and fully paid:
42,699,588 ordinary shares of one
pence each
(June 2010 43,358,435; December
2010 43,115,804 ordinary shares
of one pence each) 427 434 431
------------- -------- -------------
During the period the company bought back 431,216 shares
for cancellation for a total consideration of GBP925,748
(June 2010 909,930 shares for a total consideration of GBP1,052,976;
December 2010 1,152,561 shares for a total consideration
of GBP1,371,354). The company issued 15,000 shares (June
2010 and December 2010 Nil) to satisfy the exercise of share
options as set out below.
The company has one class of ordinary shares which carry
no right to fixed income.
At 30 June 2011 cash options to subscribe for ordinary shares
under the executive share option scheme were held as follows:
Number of one pence
ordinary shares
---------------------------------
Subscription
Date of Date normally price per 30 June 30 June 31 December
Grant exercisable share 2011 2010 2010
---------- ----------------- ---------------- -------- -------- -------------
November November 2004 to
2001 October 2011 89.5 pence - 15,000 15,000
-------- -------- -------------
During the period 15,000 share options were exercised at a price
of 89.5 pence per share (June 2010 and December 2010: Nil options).
Accordingly 15,000 one pence ordinary shares were issued to satisfy
these options at a premium of 88.5 pence per share. No share
options were granted, forfeited or expired during either the
current or previous financial periods.
Andrews Sykes Group plc
Notes to the consolidated interim financial statements
For the 6 months ended 30 June 2011 (unaudited)
9 Cash generated from operations
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Profit for the period
attributable to equity
shareholders Adjustments for:
Taxation charge Finance costs
Finance income Inter company 4,116 5,225 10,562
foreign exchange gains and 1,531 1,890 3,812
losses Income from other 974 1,103 2,144
participating interests (888) (843) (1,844)
Profit on the sale of 197 (395) (168)
property, plant and equipment - - (400)
Depreciation Excess of normal (238) (410) (624)
pension contributions 2,092 2,281 4,239
compared with service cost (60) (60) (120)
------------ ---------- -------------
Cash generated from operations
before movements in working
capital 7,724 8,791 17,601
(Increase) / decrease in
stocks Decrease / (increase)
in trade and other
receivables (Decrease) / (377) 374 126
increase in trade and other 2,148 (428) (2,468)
payables Decrease in (705) 126 2,517
provisions (7) (7) (13)
------------ ---------- -------------
Cash generated from operations 8,783 8,856 17,763
------------ ---------- -------------
10 Analysis of net funds
30 June 30 June 31 December
2011 2010 2010
GBP'000 GBP'000 GBP'000
Cash and cash equivalents per cash
flow statement 22,632 23,716 25,709
--------- --------- -------------
Bank loans (14,000) (20,000) (20,000)
Obligations under finance leases (678) (889) (756)
Derivative financial instruments (34) (65) (48)
--------- --------- -------------
Gross debt (14,712) (20,954) (20,804)
--------- --------- -------------
Net funds 7,920 2,762 4,905
--------- --------- -------------
11 Distribution of interim financial statements Following a change in
regulations in 2008, the company is no longer required to circulate
this half year report to shareholders. This enables us to reduce
costs associated with printing and mailing and to minimise the impact
of these activities on the environment. A copy of the interim
financial statements is available on the company's website,
www.andrews-sykes.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KMGZLVNDGMZM
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