TIDMMACF
RNS Number : 8958F
Macfarlane Group PLC
26 February 2015
26 February 2015
ANNUAL RESULTS FOR THE YEAR TO 31 DECEMBER 2014
Financial Highlights 2014 2013 Year on Year Change
---------------------- ------------ ------------ --------------------
Group turnover GBP153.8m GBP143.9m +7%
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Pre-tax profit * GBP5.6m GBP5.1m +11%
---------------------- ------------ ------------ --------------------
Pre-tax profit GBP5.6m GBP4.7m +19%
---------------------- ------------ ------------ --------------------
Proposed full year
dividend 1.65 pence 1.60 pence +3%
---------------------- ------------ ------------ --------------------
Earnings per share
* 3.78 pence 3.32 pence +14%
---------------------- ------------ ------------ --------------------
* Before exceptional items
Macfarlane Group PLC increased sales to GBP153.8m in 2014, a 7%
increase on the prior year (2013: GBP143.9m). The Group grew profit
before tax and exceptional items in 2014 by 11% to GBP5.6m (2013:
GBP5.1m), fuelled by a combination of organic sales growth and
targeted acquisitions. This result represented a significant
achievement for the Group in competitive market conditions.
Trading
The Group's core Packaging Distribution business increased sales
by 9% to GBP126.9m (2013: GBP116.3m). This was achieved through
organic growth of 4%, with particular success in the expanding
internet retail sector and increased penetration of National
Accounts, and as a result of the successful acquisitions of Lane
Packaging and Network Packaging in May and September respectively.
This translated into a 16% increase in operating profit before
exceptional items for the division to GBP5.8m (2013: GBP5.0m).
In the Group's Manufacturing division, the Packaging Design and
Manufacture business reported another year of good performance.
However, the widely reported challenging conditions being
experienced in the UK retail sector impacted on the Group's Labels
business. As a consequence, sales in the Manufacturing Division
reduced marginally to GBP26.9m (2013: GBP27.6m), and lower gross
margins in the Labels business resulted in an operating profit
before exceptional items of GBP0.9m (2013: GBP1.3m).
Dividend
The Board remains committed to providing shareholders with an
appropriate return on their investment and is proposing a final
dividend of 1.15 pence per share, making a full year dividend of
1.65 pence per share, a 3% increase on the prior year's dividend of
1.60 pence per share. Subject to the approval of shareholders at
the Annual General Meeting on 5 May 2015, this dividend will be
paid on 4 June 2015 to those shareholders on the register at 8 May
2015.
Net Debt and Pension Scheme
As a consequence of the acquisitions undertaken during the year,
the Group's bank debt at 31 December 2014 increased to GBP10.1m
from GBP5.9m at the prior year-end. As previously reported, the
Group now has a new, longer term, finance facility in place.
The Board continues to take steps to reduce Macfarlane Group's
pension deficit including a one-off contribution of GBP2.5m in the
year. This, combined with careful stewardship of the investment
portfolio by the Trustees, in conjunction with the Company, helped
to offset the impact of lower bond yields and at the year-end the
deficit was GBP13.9m (2013: GBP15.9m).
Outlook
The Board is confident that, with the UK economy displaying
further signs of improvement and continued implementation of its
strategy, Macfarlane Group will continue to succeed through its own
actions coupled with improved market conditions in 2015.
Commenting on the 2014 results, Graeme Bissett, Chairman,
said:
"This 11% increase in pre-tax profits before exceptional items
represents the fifth consecutive year of profit growth for
Macfarlane Group. The focus of our Packaging Distribution business
on the opportunities in internet retail, third party logistics and
National Accounts is producing good results for the Group. The
acquisitions of Lane Packaging and Network Packaging have performed
strongly and have been earnings-enhancing in 2014 and I look
forward to seeing their full-year contributions feed through in
2015. The Board remains committed to seeking out further profitable
expansion opportunities through carefully selected acquisitions.
The positive sales trends seen in the final quarter of 2014 have
continued into 2015 and the Group is well positioned for further
growth in 2015."
Further enquiries: Macfarlane Group Tel: 0141 333 9666
------------------- ------------------------------- -------------------
Graeme Bissett Chairman
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Peter Atkinson Chief Executive
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John Love Finance Director
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Spreng & Co Tel: 0141 548 5191
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Callum Spreng Mob: 07803 970103
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Notes to Editors:
-- Macfarlane Group PLC is listed on the London Stock Exchange
(LSE: MACF) in the Industrials Sector.
-- The company has more than 60 years' experience in the UK packaging industry.
-- Macfarlane Group has three businesses:
o Macfarlane Packaging is the leading UK distributor of a
comprehensive range of protective packaging products.
o Labelsdesigns and prints high quality self-adhesive and
re-sealable labels, principally for FMCG companies.
o Packaging Design and Manufacture specialises in designing and
producing protective packaging for high value, fragile
products.
-- Macfarlane Group is headquartered in Glasgow, Scotland, and
employs over 700 people at 25 sites, principally in the UK and
Ireland.
-- The company has 20,000+ customers in the UK, Europe and the
USA providing 600,000+ lines to a wide range of industry sectors
including: consumer goods; food manufacturing; logistics; internet
retail; mail order; electronics; defence and aerospace.
Business Review
Group performance
Profit Profit
before before
exceptional exceptional
Revenue items Revenue items
Segment 2014 2014 2013 2013
GBP000 GBP000 GBP000 GBP000
Packaging Distribution 126,907 5,758 116,280 4,960
Manufacturing Operations 26,860 888 27,591 1,291
Revenue from continuing
operations 153,767 143,871
Operating profit 6,646 6,251
Net finance costs (1,040) (1,199)
Profit before tax - continuing
operations 5,606 5,052
The markets in which we operate remained challenging in 2014 and
are highly competitive. Despite this, Macfarlane Group's sales in
2014 were 7% above the level achieved in 2013. The good organic
growth in sales was supported by two acquisitions during the year
and as a result, profit before tax and exceptional items at GBP5.6
million, was 11% ahead of the level achieved in 2013. There were no
exceptional items in 2014.
The Packaging Distribution business achieved a sales increase
versus 2013 of 9% comprising 4% organic growth and 5% from
acquisitions. There was a strong final quarter's sales performance,
reflecting a 6% increase versus 2013, through the benefit of new
business wins earlier in the year and increasing penetration of
National Accounts. The growth in new business particularly focused
on the supply of protective packaging to internet retailers both
directly and through our partnerships with major Third Party
Logistics ("3PL") customers. The increased competitive environment
resulted in a slightly lower gross margin of 28.8% compared to
29.1% in 2013. Despite the increases in overheads arising from the
two acquisitions, cost control remained strong with the overhead to
sales ratio reducing to 24.3% compared with 24.8% in 2013.
Operating profit before tax and exceptional items in the Packaging
Distribution business at GBP5.8 million showed growth of 16% versus
2013.
2014 was a year of contrast for our Manufacturing Operations.
The focus for both our Labels and Packaging Design and Manufacture
businesses in 2014 was to concentrate on their higher added-value
activities and this resulted in changes to both the customer and
product mix. Sales in our Manufacturing Operations decreased by 3%
versus 2013 mainly due to certain key customers in the
self-adhesive label sector losing market share. Gross margins
improved overall but reduced in our Labels business due to the
increasingly competitive UK retail market and the cost base
increased due to the relocation of our Labels facility in Ireland
during 2013. The weaker performance from our Labels business was
the major cause of our Manufacturing Operations recording operating
profit before tax and exceptional items of GBP0.9 million compared
with GBP1.3 million in 2013.
Whilst there is a modest improvement in the economic
environment, our future performance will again be largely dependent
on our own efforts to grow sales and increase efficiencies. We
operate a flexible business model and our ability to focus on the
most attractive UK market sectors for our products and services
gives us confidence that 2015 will be another year of progress for
Macfarlane Group.
Macfarlane Packaging Distribution is the leading UK specialist
distributor of protective packaging materials, and in what is a
highly fragmented market, Macfarlane is the market leader. The
business operates from 18 Regional Distribution Centres (RDCs)
supplying customers with a comprehensive range of protective
packaging materials and services on a local, regional and national
basis.
Competition in the distribution market is from local and
regional protective packaging specialist companies and national
distribution generalists who supply a range of products, including
protective packaging materials. Macfarlane competes effectively on
a local basis through its strong focus on and regular monitoring of
customer service, its breadth and depth of product offer and
through the recruitment and retention of staff with good local
market knowledge. On a national basis Macfarlane has focus,
expertise and a breadth of product and service knowledge all of
which enables it to compete effectively against non-specialist
packaging distributors.
Macfarlane Packaging benefits its customers by enabling them to
ensure their products are cost-effectively protected in transit and
storage through the supply of a comprehensive product range, single
source supply, Just In Time delivery, tailored stock management
programmes, electronic trading and independent advice on both
packaging materials and packing processes.
Existing Acquisitions 2014 2013
GBP000 GBP000 GBP000 GBP000
Sales growth
Sales 120,631 6,276 126,907 116,280 9%
Cost of sales (86,029) (4,353) (90,382) (82,415)
Margin growth
Gross margin 34,602 1,923 36,525 33,865 8%
Overhead growth
Overheads (29,360) (1,407) (30,767) (28,905) 6%
Operating profit
before exceptional Profit growth
items 5,242 516 5,758 4,960 16%
Packaging Distribution sales grew by 9% over 2013 levels
supported by our acquisition of Lane Packaging in May 2014 and
Network Packaging in September 2014. Growth was particularly strong
with internet retailers and National Accounts, where Macfarlane has
a strongly differentiated offer for customers. Gross margin
percentage reduced to 28.8% (2013 - 29.1%) due to the impact of
price lead competition. Good overhead control throughout the
business reduced the overhead as a percentage of sales to 24.3%
(2013 - 24.8%) resulting in an increase in operating profit to
GBP5.8 million from GBP5.0 million in 2013.
The 18 RDCs in our network are managed and measured as profit
centres. In 2014 we had 13 of our 18 RDCs performing above the
target return on sales level of 5%. The remaining 5 RDCs continue
to demonstrate improvements that indicate their ability to achieve
the target return on sales.
Future Plans
We expect general demand levels to increase modestly in 2015.
Therefore our plans continue to be focused on those markets showing
growth, building market share and improving operational
effectiveness through the following actions:
l Accelerating our penetration of the growing internet retail
sector both directly and through our partnerships with key 3PL
organisations;
l Expanding our focus in industry sectors which benefit from
Macfarlane's national coverage through our specialist National
Account sales team;
l Continuing the development of our web-based presence through
macfarlanepackaging.com to improve online visibility and access to
our full range of products and services;
l Commencing the programme to integrate our recently acquired
companies following the completion of the earnout periods;
l Supplementing organic growth through identification of further
suitable acquisition opportunities;
l Improving the awareness of our membership of NovuPak, for UK
based customers requiring our capabilities on a wider European
basis;
l Continuing to reduce operating costs by evaluating
alternatives to our current property footprint, implementing
further operational savings in logistics through expanded use of
the Paragon vehicle management system and the implementation of a
warehouse best practice programme; and
l Maintaining the focus on working capital management to reduce
borrowing levels.
Manufacturing Operations
Macfarlane's Manufacturing Operations comprise Labels, which
includes self-adhesive and resealable labels and our Packaging
Design and Manufacture business.
2014 2013
GBP000 GBP000
Sales 26,860 27,591
Cost of sales (15,922) (16,568)
Gross margin 10,938 11,023
Overheads (10,050) (9,732)
Operating profit before exceptional
items 888 1,291
In 2014 Macfarlane's Manufacturing Operations recorded an
operating profit before exceptional items of GBP0.9 million (2013 -
GBP1.3 million). The key features of the Manufacturing Operations'
performance in 2014 were:
l Sales reduced by 3% versus 2013 mainly due to key
self-adhesive label customers losing UK market share;
l Gross margins increased to 40.7% (2013 - 40.0%) through the
focus on higher added value products and services; and
l Net overheads increased as a percentage of sales from 35.3% in
2013 to 37.4% in 2014.
Labels
Our Labels business designs and prints self-adhesive labels for
major FMCG customers in the UK and Europe and resealable labels for
major customers in the UK, Europe and the USA. The business
operates from production sites in Kilmarnock and Wicklow and a
sales and design office in Sweden, which focuses on the development
and growth of our resealable labels business - Reseal-it.
The Labels business has a high level of dependency on a small
number of major customers. Management works closely with these key
customers to ensure high levels of service and to introduce product
and service development initiatives to achieve competitive
differentiation.
2014 was a difficult year with sales reducing by 3% and profits
were below the level achieved in 2013.
Sales of self-adhesive labels were negatively impacted by key
customers losing UK market share and gross margin in this product
sector remained under pressure due to the highly competitive
conditions in the UK retail market.
We continued to make good progress in the development of the
resealable range of labels and systems and Reseal-it in 2014
represented 39% of revenue (2013 - 36%). Competition in the
resealable label sector is increasing but total sales for Reseal-it
grew by 2% versus 2013. Despite some slowing of momentum in the USA
this was more than offset with good growth in Reseal-it system
sales in Europe and improved penetration in the UK market through
major retailers.
The business sustained higher costs associated with the
re-location of our manufacturing activities in Ireland to a larger
site in Wicklow.
Future Plans
The priorities for Labels in 2015 are: -
-- Maintenance of the strategic focus on higher added value products and services;
-- Changes to our commercial offering in the self-adhesive label
market to counterbalance customer order patterns and
volatility;
-- Continued improvement in operational efficiencies to
counterbalance competitive price pressure, maximising the returns
from 2014 capital expenditure; and
-- Further development of the Reseal-it product in the US market
through the Printpack partnership, in Europe through new business
wins and in the UK through improved penetration with key
retailers.
Packaging Design and Manufacture
The principal activity of the Packaging Design and Manufacture
business is the design, manufacture and assembly of custom-designed
packaging solutions for customers requiring cost-effective methods
of protecting high value products in storage and transit. The
primary raw materials are corrugate, timber and foam. The business
operates from two manufacturing sites in Grantham and Westbury,
supplying both direct to customers and also through the RDC network
of the Packaging Distribution business.
The key market sectors supplied are defence, aerospace, medical
equipment, electronics and automotive. The markets in which we
operate are highly fragmented with a range of locally based
competitors. We differentiate ourselves through our technical
expertise, design capability, industry accreditations and national
coverage through the partnership with Macfarlane Packaging
Distribution.
Business Performance
2014 external sales were 3% below those in 2013 caused by the
relocation of a major customer outwith the UK. Management continued
to change the mix of products and services towards those with
higher added-value and the benefit was an improvement in gross
margin, which together with good cost control contributed to an
overall level of profitability in 2014 slightly ahead of that
achieved in 2013. There was encouraging progress during 2014 in the
development of new customer relationships, which should benefit the
business in 2015.
Future Plans
The priorities for 2015 are:
l Accelerate sales growth, particularly in certain key sectors
e.g. Defence, Aerospace and Medical;
l Identify and execute suitable acquisition opportunities;
l Prioritise our sales activity on the higher added-value
bespoke composite pack product range;
l Continue to strengthen the relationship between our Packaging
Design & Manufacture operations and our Packaging Distribution
business to create both sales and cost synergies; and
l Make selective investments to improve productivity at both our
manufacturing sites.
Cash Flow and Net Debt
The Group agreed a new debt facility with Lloyds Banking Group
PLC in 2014, comprising a three-year committed borrowing facility
of up to GBP20.0 million for the period to February 2017. The
facility bears interest at normal commercial rates and carries
standard financial covenants in relation to interest cover and
levels of headroom over trade receivables. This new longer-term
borrowing facility was put in place to accommodate increased
working capital requirements from our organic growth, finance for
acquisitions and a one-off contribution to reduce the pension
scheme deficit.
Placing of new shares
Following the acquisition of Network Packaging, the Company
undertook a share placing to provide additional funds for its
acquisition programme. The placing was well supported by new and
existing institutional investors and following approval in General
Meeting in October 2014, the Company issued 8,000,000 ordinary
shares at a price of 37.50p each, raising GBP2.8 million net of
expenses.
Pension Scheme Deficit
During the year the Group's pension scheme deficit reduced from
GBP15.9 million to GBP13.9 million. The Board continues to take
steps to cut Macfarlane Group's pension deficit including a one-off
contribution of GBP2.5 million in the year. This, combined with
careful stewardship of the investment portfolio by the Trustees, in
conjunction with the Company, helped to offset the impact of lower
bond yields
2015 Outlook
We expect general market demand in 2015 to increase modestly as
the UK economy continues its recovery. There are specific market
sectors such as internet retail which are forecast to show good
growth and Macfarlane Group will focus on ensuring we continue to
be well positioned to benefit from the growth expected in these
sectors.
During 2015 we will look at further opportunities to accelerate
sales growth through the acquisition of quality protective
packaging businesses that can leverage our current infrastructure
or improve our geographic penetration.
Macfarlane Group's businesses all have good market positions
with strong differentiated product and service offerings. Our
business model is flexible and we have a clear strategic plan,
which is being effectively implemented as reflected in our track
record of consistent, profitable growth.
We expect 2015 to be another successful year for Macfarlane
Group.
Business Review
The principal risks and uncertainties faced by the Group and
factors mitigating these risks are detailed below.
Risk Mitigating Factors
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Raw material prices
The Group's businesses are impacted The Group works closely with its
by commodity-based raw material supplier base to manage the scale
prices and manufacturer energy and timing of price increases to
costs, with profitability sensitive end-users effectively. Our IT systems
to supplier price changes. The monitor and measure our effectiveness
principal components are corrugated in recovering supplier price changes.
paper, polythene films, timber Where possible, alternative supplier
and foam, with changes to paper relationships are maintained to minimise
and oil prices having a direct supplier dependency. We work with
impact on the price we pay to customers to redesign packs and reduce
our suppliers. packing cost to mitigate the impact
of cost increases.
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Funding defined benefit pension
scheme Steps undertaken to reduce the deficit
The Group's defined benefit pension include: -
scheme is sensitive to a number The scheme was closed to new members
of key factors; investment returns, in 2002.
discount rates used to calculate Benefits for active members were
scheme liabilities (based on corporate amended by freezing pensionable salaries
bond yields) and mortality assumptions. at 30 April 2009 salary levels.
The IAS19 valuation of the Group's The revaluation of deferred members'
defined benefit pension scheme benefits has reflected Consumer Prices
as at 31 December 2014 estimated Index as the inflation measure since
the scheme deficit to be GBP13.9 2010.
million. Small changes in these During 2012 a Pension Increase Exchange
assumptions could mean that the exercise was completed to offer flexibility
deficit increases. to pensioners in the current level
of pension benefits and the rate
of future increases.
Further actions to reduce volatility
will be evaluated in 2015.
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Property
Given the multi-site nature of Where a site is non-operational the
its business, the Group has a Group seeks to assign, sell or sub-lease
property portfolio comprising the building to mitigate the financial
4 owned sites and 27 leased sites impact. If this is not possible,
of which 4 are sublet, with 1 rental voids are provided on vacant
vacant owned site at the balance properties taking into consideration
sheet date. This portfolio gives the likely period of vacancy and
rise to risks for ongoing lease incentives to re-let.
costs, dilapidations and fluctuations
in value.
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Financial liquidity, debt covenants
and interest rates
The Group needs continuous access The Group seeks to maintain an appropriate
to funding to meet its trading level of committed bank facilities
obligations and to support organic that provides sufficient headroom
growth and acquisitions. There above peak projected borrowing requirements.
is a risk that the Group may be The Group continually monitors net
unable to obtain the necessary debt and forecast cash flows to ensure
funds or that such funds will that it will be able to meet its
only be available on unfavourable financial obligations as they fall
terms. The Group's borrowing facilities due. Compliance with debt covenants
comprise a committed facility is monitored on a monthly basis and
of GBP20 million, including requirements sensitivity analysis is applied to
to comply with specified covenants, forecasts to assess the impact on
with a breach potentially resulting covenants.
in Group borrowings being subject
to more onerous conditions.
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Decentralised structure
The Packaging Distribution business A comprehensive management information
model reflects a decentralised system is maintained with key performance
approach with a high dependency indicators monitored consistently
on effective local decision-making. and regularly with actions taken
There is a risk that management when required.
control is less effective and
local decisions do not meet overall
corporate objectives.
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Working capital
The Group has a significant investment Credit risk is controlled by applying
in working capital in the form rigour to the management of trade
of trade receivables and inventories. receivables by our credit control
There is a risk that this investment team, managed by a credit control
is not fully recovered. manager and subject to additional
scrutiny from the Group Finance Director.
Inventory levels and order patterns
are regularly reviewed and risks
arising from holding bespoke stocks
are managed by obtaining order cover
from customers.
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There are a number of other risks that we manage which are not
considered to be key risks. In addition the Group is subject to the
impact of general economic conditions, the competitive environment
and risks associated with business continuity. These are all
mitigated in ways that are common to all businesses and not
specific to Macfarlane Group.
These risks are complemented by an overall governance framework
including clear and delegated authorities, business performance
monitoring and appropriate insurance cover for a wide range of
potential risks. There is a dependence on good quality local
management, which is supported by an investment in training and
development and ongoing performance evaluation.
Going Concern
The Directors, in their consideration of going concern, have
reviewed the Group's cash flow forecasts and revenue projections,
which they believe are based on past experience and what they
consider to be prudent market data. The Group's business
activities, together with the factors likely to affect its future
development, performance and financial position are set out in the
Chairman's Statement and Business Review on pages 1 to 8.
The Group's principal financial risks in the medium term relate
to liquidity and credit risk. Liquidity risk is managed by ensuring
that the Group's day-to-day working capital requirements are met by
having access to banking facilities with suitable terms and
conditions to accommodate the requirements of the Group's
operations. Credit risk is managed by applying considerable rigour
in managing the Group's trade receivables. The Directors believe
that the Group is adequately placed to manage its financial risks
effectively despite the current uncertain economic outlook.
The Group's principal banking facilities of up to GBP20.0
million are in place until February 2017 and the Directors are of
the opinion that the Group's cash forecasts and revenue
projections, taking account of reasonably possible changes in
trading performance given current market and economic conditions,
show that the Group should be able to operate within its current
facilities and comply with its banking covenants.
After making enquiries, the directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future.
For this reason they continue to adopt the going concern basis in
preparing the financial statements.
Cautionary Statement
The Chairman's Statement and the Business Review on pages 1 to 8
have been prepared to provide additional information to members of
the Company to assess the Group's strategy and the potential for
the strategy to succeed. It should not be relied on by any other
party or for any other purpose.
This report and the financial statements contain certain
forward-looking statements relating to operations, performance and
financial status. By their nature, such statements involve risk and
uncertainty because they relate to events and depend upon
circumstances that will occur in the future. There are a number of
factors, including both economic and business risk factors that
could cause actual results or developments to differ materially
from those expressed or implied by these forward-looking
statements. These statements are made by the Directors in good
faith based on the information available to them up to the time of
their approval of this report.
Responsibility Statement of the Directors
The responsibility statement below has been prepared in
connection with the company's full annual report for the year
ending 31 December 2014. Certain parts of the full annual report
are not included within this announcement. The Directors of
Macfarlane Group PLC are
G. Bissett Chairman
P.D. Atkinson Chief Executive
J. Love Finance Director
M. Arrowsmith Non-Executive Director and Senior Independent Director
S. Paterson Non-Executive Director
R. McLellan Non-Executive Director
To the best of the knowledge of the Directors (whose names and
functions are set out above), the financial statements, prepared in
accordance with International Financial Reporting Standards as
adopted by the EU, give a true and fair view of the assets,
liabilities, financial position and profit for the Company and the
undertakings included in the consolidation taken as a whole;
and
Pursuant to Disclosure and Transparency Rules, Chapter 4, the
Directors' Report of the Company's annual report includes a fair
review of the development and performance of the business and the
position of the Company, and the undertakings included in the
consolidation taken as a whole, together with a description of the
principal risks and uncertainties faced by the business.
Peter Atkinson John Love
Chief Executive Finance Director
26 February 2015 26 February 2015
Macfarlane Group PLC
Consolidated income statement
For the year ended 31 December 2014
2014 2013
GBP000 before
exceptional Exceptional
items items 2013
GBP000 GBP000 GBP000
Note (see Note
3)
Continuing operations 3
Revenue 153,767 143,871 - 143,871
Cost of sales (106,304) (98,983) - (98,983)
Gross profit 47,463 44,888 - 44,888
Distribution costs (7,432) (7,458) - (7,458)
Administrative expenses (33,385) (31,179) (336) (31,515)
Operating profit 3 6,646 6,251 (336) 5,915
Finance costs 4 (1,040) (1,199) - (1,199)
Profit before tax 5,606 5,052 (336) 4,716
Tax 5 (1,164) (1,265) 5 (1,260)
Profit for the year 7 4,442 3,787 (331) 3,456
Earnings per share
Basic 7 3.78p 3.32p (0.29p) 3.03p
Diluted 7 3.78p 3.31p (0.29p) 3.02p
Macfarlane Group PLC
Consolidated statement of comprehensive income
For the year ended 31 December 2014
Note 2014 2013
GBP000 GBP000
Exchange differences on translation of foreign
operations (102) 40
Remeasurement of pension scheme liability 10 (2,737) 1,177
Tax recognised in other comprehensive income
Tax on remeasurement of pension scheme liability 11 548 (271)
Long-term corporation tax rate change 11 - (476)
Other comprehensive income for the year (2,291) 470
Profit for the year 4,442 3,456
Total comprehensive income for the year 2,151 3,926
Consolidated statement of changes in equity
For the year ended 31 December 2014
Note Share Share Revaluation Own Translation Retained
Capital Premium Reserve Shares Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2013 28,755 - 70 (810) 183 (4,180) 24,018
Profit for the
year - - - - - 3,456 3,456
Dividends 6 - - - - - (1,774) (1,774)
Exchange differences
on translation
of foreign operations - - - - 40 - 40
Transfer of own
shares to pension
scheme - - - 499 - (245) 254
Remeasurement
of pension liability 10 - - - - - 1,177 1,177
Tax on remeasurement
of pension liability 11 - - - - - (271) (271)
Long-term corporation
tax rate change 11 - - - - - (476) (476)
At 31 December
2013 28,755 - 70 (311) 223 (2,313) 26,424
Profit for the
year - - - - - 4,442 4,442
Dividends 6 - - - - - (1,888) (1,888)
Issue of share
capital 12 2,398 1,018 - - - - 3,416
Exchange differences
on translation
of foreign operations - - - - (102) - (102)
Exercise of share
options 13 - - - 311 - (168) 143
Remeasurement
of pension liability 10 - - - - - (2,737) (2,737)
Tax on remeasurement
of pension liability 11 - - - - - 548 548
At 31 December
2014 31,153 1,018 70 - 121 (2,116) 30,246
Macfarlane Group PLC
Consolidated balance sheet at 31 December 2014
Note 2014 2013
GBP000 GBP000
Non-current assets
Goodwill and other intangible assets 34,125 25,415
Property, plant and equipment 7,445 7,281
Other receivables 659 1,651
Deferred tax assets 11 3,245 3,628
Total non-current assets 45,474 37,975
Current assets
Inventories 9,663 7,931
Trade and other receivables 39,998 35,481
Cash and cash equivalents 9 1,250 477
Total current assets 50,911 43,889
Total assets 3 96,385 81,864
Current liabilities
Trade and other payables 37,566 32,346
Current tax liabilities 279 435
Provisions 52 82
Finance lease liabilities 9 155 33
Bank borrowings 9 11,349 6,359
Total current liabilities 49,401 39,255
Net current assets 1,510 4,634
Non-current liabilities
Retirement benefit obligations 10 13,873 15,896
Deferred tax liabilities 11 1,019 253
Trade and other payables 1,368 36
Finance lease liabilities 9 478 -
Total non-current liabilities 16,738 16,185
Total liabilities 3 66,139 55,440
Net assets 30,246 26,424
Equity
Share capital 12 31,153 28,755
Share premium 12 1,018 -
Revaluation reserve 70 70
Own shares - (311)
Translation reserve 121 223
Retained earnings (2,116) (2,313)
Total equity 3 30,246 26,424
Macfarlane Group PLC
Consolidated cash flow statement
For the year ended 31 December 2014
Note 2014 2013
GBP000 GBP000
Net cash inflow from operating activities 9 2,843 3,427
Investing activities
Acquisition of subsidiary undertaking 8 (5,051) -
Proceeds on disposal of property, plant
and equipment 152 30
Purchases of property, plant and equipment (624) (774)
Net cash used in investing activities (5,523) (744)
Financing activities
Dividends paid 6 (1,888) (1,774)
Proceeds from issue of share capital (net
of issue expenses) 12 2,791 -
Proceeds from sale of own shares to satisfy
share options 13 143 -
Repayment of bank loan (6,000) -
Additional payment to pension scheme (2,500) -
Drawdown on bank borrowing facility 11,349 -
Repayments of obligations under finance
leases 9 (83) (126)
Net cash generated by/(used in) financing
activities 3,812 (1,900)
Net increase in cash and cash equivalents 9 1,132 783
Cash and cash equivalents at beginning
of year 118 (665)
Cash and cash equivalents at end of year 9 1,250 118
Macfarlane Group PLC
Notes to the financial information
For the year ended 31 December 2014
1. General information
The financial information set out in this preliminary
announcement does not constitute the Group's statutory financial
statements as defined in Section 435 of the Companies Act 2006 and
has been extracted from the full statutory accounts for the years
ended 31 December 2014 and 31 December 2013 respectively.
The financial statements for 2014 were approved by the Board of
Directors on 26 February 2015. The auditor's report on the
statutory financial statements for the year ended 31 December 2014
was unqualified pursuant to Section 498 of the Companies Act 2006
and did not contain a statement under sub-section 498 (2) or (3) of
that Act. The comparative figures for the financial year ended 31
December 2013 are not the Company's statutory accounts for that
financial year. Those accounts have been reported on by the
Company's auditor and delivered to the registrar of companies. The
report of the auditor was (i) unqualified, (ii) did not include a
reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report, and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006.
2. Basis of preparation
The Group's business activities, together with the factors
likely to affect its future development, performance and financial
position are set out on pages 1 to 8.
The Group's principal financial risks in the medium term relate
to liquidity and credit risk. Liquidity risk is managed by ensuring
that the Group's day-to-day working capital requirements are met by
having access to committed banking facilities with suitable terms
and conditions to accommodate the requirements of the Group's
operations. Credit risk, which is heightened as a result of the
difficulties customers may face in the current climate, is managed
by applying considerable rigour in managing the Group's trade
receivables. The Directors believe that the Group is adequately
placed to manage its financial risks effectively despite the
current uncertain economic outlook.
The Group's debt facility with Lloyds Banking Group PLC
comprises a three-year committed borrowing facility expiring in
February 2017 of up to GBP20.0 million and secured over part of
Macfarlane Group's trade receivables. The facility bears interest
at normal commercial rates and carries standard financial covenants
in relation to interest cover and levels of headroom over trade
receivables.
The Directors are of the opinion that the Group's cash forecasts
and revenue projections, which they believe are based on prudent
market data and past experience taking account of reasonably
possible changes in trading performance given current market and
economic conditions, show that the Group should be able to operate
within its current facilities and comply with its banking
covenants.
After making enquiries, the directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future.
For this reason they continue to adopt the going concern basis in
preparing the financial statements for the year ended 31 December
2014.
2. Basis of preparation (continued)
Judgements, assumptions and estimation uncertainties
In preparing the 2014 financial statements, management has made
judgements, estimates and assumptions, which affect the application
of the Group's accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ
from the amounts estimated. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to estimates are
recognised prospectively.
Information about judgements, assumptions and estimation
uncertainties made in applying accounting policies that have the
most significant effect on the amounts recognised in these
financial statements and therefore have the most significant risk
of resulting in a material change are as follows:-
(i) Trade and Other Receivables The provision for doubtful receivables
is based on judgmental estimates
over the recoverable amounts
(ii) Retirement Benefit Obligations The valuation of the pension
deficit is affected by key actuarial
assumptions
3. Segmental information
The Group's principal business segment is Packaging
Distribution, comprising the distribution of packaging materials
and supply of storage and warehousing services in the UK. This
constitutes over 80% of Group turnover and profit and as such, the
Group has combined the remaining operations for the manufacture and
supply of self-adhesive and resealable labels to a variety of FMCG
customers in the UK & Europe and the design, manufacture and
assembly of timber, corrugated and foam-based packaging materials
in the UK into one segment headed Manufacturing Operations. No
individual business segment within Manufacturing Operations
represents more than 10% of Group revenue or income.
2014
GBP000
Packaging Distribution
Revenue 126,907
Cost of sales (90,382)
Gross profit 36,525
Net operating expenses (30,767)
Operating profit 5,758
Manufacturing Operations
Revenue 26,860
Cost of sales (15,922)
Gross profit 10,938
Net operating expenses (10,050)
Operating profit 888
Profit
before
Exceptional Exceptional
items items 2013
GBP000 GBP000 GBP000
Packaging Distribution
Revenue 116,280 - 116,280
Cost of sales (82,415) - (82,415)
Gross profit 33,865 - 33,865
Net operating expenses (28,905) (42) (28,947)
Operating profit 4,960 (42) 4,918
Manufacturing Operations
Revenue 27,591 - 27,591
Cost of sales (16,568) - (16,568)
Gross profit 11,023 - 11,023
Net operating expenses (9,732) (294) (10,026)
Operating profit 1,291 (294) 997
Packaging Manufacturing
Distribution Operations 2013
Exceptional items 2013 GBP000 GBP000 GBP000
Costs to exit surplus properties (42) (294) (336)
During 2013 the Group incurred costs of GBP0.3 million to
terminate the leases for surplus properties and wrote-down an owned
property to its realisable value.
Exceptional items are those transactions material to the income
statement where separate disclosure is necessary for an appropriate
understanding of the Group's financial performance.
2014 2013
GBP000 GBP000
Group segment
Group segment - total revenue
Packaging Distribution 126,907 116,280
Manufacturing Operations 32,358 32,180
Inter-segment revenue (5,498) (4,589)
External revenue - continuing operations 153,767 143,871
Operating profit - continuing operations
Packaging Distribution 5,758 4,918
Manufacturing Operations 888 997
Operating profit - continuing operations 6,646 5,915
Finance costs (1,040) (1,199)
Profit before tax 5,606 4,716
Tax (1,164) (1,260)
Profit for the year 4,442 3,456
Assets Liabilities Net assets
GBP000 GBP000 GBP000
Group segments
Packaging Distribution 80,365 58,189 22,176
Manufacturing Operations 16,020 7,950 8,070
Net assets 2014 96,385 66,139 30,246
Assets Liabilities Net assets
GBP000 GBP000 GBP000
Group segments
Packaging Distribution 68,493 48,544 19,949
Manufacturing Operations 13,371 6,896 6,475
Net assets 2013 81,864 55,440 26,424
4. Finance costs 2014 2013
GBP000 GBP000
Interest on bank borrowings (438) (418)
Interest on obligations under finance leases (8) (6)
Net interest expense on retirement benefit obligation
(see note 10) (594) (775)
Total finance costs (1,040) (1,199)
5. Tax 2014 2013
GBP000 GBP000
Current tax
United Kingdom corporation tax at 21.50% (2013:
23.25%) (230) (795)
Foreign tax (95) (62)
Total current tax (325) (857)
Total deferred tax (see note 11) (839) (403)
Total (1,164) (1,260)
The standard rate of tax based on the UK average rate of
corporation tax, is 21.50% (2013 - 23.25%). Taxation for other
jurisdictions is calculated at the rates prevailing in these
jurisdictions. The actual tax charge for the current and previous
year varies from 21.50% (2013 - 23.25%) of the results as set out
in the income statement for the reasons set out in the following
reconciliation:
2014 2013
GBP000 GBP000
Profit before taxation 5,606 4,716
Tax on profit at 21.50% (2013 - 23.25%) (1,205) (1,096)
Factors affecting tax charge for the year:-
Non-deductible expenses (1) (70)
Difference on overseas tax rates (1) (47)
Changes in estimates related to prior years 43 16
Exceptional items - (63)
Tax charge for the year (1,164) (1,260)
6. Dividends 2014 2013
GBP000 GBP000
Amounts recognised as distributions to equity
holders in the year:
Final dividend for the year ended 31 December 2013
of 1.10p per share
(2012 - 1.05p per share) 1,265 1,202
Interim dividend for the year ended 31 December
2014 of 0.50p per share
(2013 - 0.50p per share) 623 572
1,888 1,774
Dividends were not payable on the Own shares held in the
employee share trust.
In addition to the amounts shown above, a proposed dividend of
1.15p per share will be paid on 4 June 2014 to those shareholders
on the register at 8 May 2015. This is subject to approval by
shareholders at the Annual General Meeting in 2015 and has not been
included as a liability in these financial statements.
7. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following data:
2014 2013
GBP000 GBP000
Earnings from continuing operations for the purposes
of earnings per share being profit for the year
from continuing operations 4,442 3,456
Number of shares in issue for the purposes of calculating 2014 2013
basic and diluted earnings per share No. of No. of
shares shares
'000 '000
Weighted average number of ordinary shares in issue
for the year 117,550 115,019
Weighted average number of shares in Employee Share
Ownership Trusts (184) (846)
Weighted average number of shares in issue for
the
purposes of basic earnings per share 117,366 114,173
Effect of dilutive potential ordinary shares due
to share options - 96
Weighted average number of shares in issue for
the
purposes of diluted earnings per share 117,366 114,269
Basic Earnings per share 3.78p 3.03p
Diluted Earnings per share 3.78p 3.02p
8. Acquisition of subsidiary companies
During 2014 the Group acquired two trading subsidiary
companies.
On 2 May 2014, the Group's subsidiary, Macfarlane Group UK
Limited, acquired 100% of the issued share capital of PSD
Industrial Holdings Limited, the immediate parent company of Lane
Packaging Limited, for a consideration of approximately GBP0.9
million. GBP0.7 million was paid in cash on acquisition, with the
deferred consideration payable in the second quarter of 2015,
subject to certain trading targets being met in the year to 30
April 2015.
On 5 September 2014, the Group acquired 100% of the issued share
capital of Network Packaging Limited for a consideration of
approximately GBP7.5 million. GBP4.3 million of the consideration
was paid in cash on acquisition and GBP0.6 million was settled by
the issue of shares. The deferred consideration of GBP2.6 million,
is payable in two instalments in the final quarter of 2015 and the
final quarter of 2016, subject to certain trading targets being met
in the two twelve month periods ending on 5 September 2015 and 5
September 2016 respectively.
Both businesses are packaging distributors and are accounted for
in the Packaging Distribution segment. Goodwill arising on these
acquisitions is attributable to the anticipated future
profitability of the distribution of the Group's product ranges in
new geographical markets in the UK and anticipated operating
synergies from the future combination of activities with the
existing Packaging Distribution network.
Fair values assigned to net assets acquired and consideration
paid and payable are set out below:-
Lane Packaging Network
GBP000 Packaging Total
GBP000 GBP000
Net assets acquired
Other intangible assets 663 3,617 4,280
Property, plant and equipment 76 119 195
Inventories 72 466 538
Trade and other receivables 453 1,766 2,219
Cash and bank balances - 432 432
Bank loans and overdrafts (532) - (532)
Trade and other payables (681) (1,634) (2,315)
Current tax liabilities (16) (296) (312)
Finance lease liabilities (56) (85) (141)
Deferred tax liabilities (133) (725) (858)
Net (liabilities)/assets acquired (154) 3,660 3,506
Goodwill arising on acquisition 1,001 3,857 4,858
Total consideration 847 7,517 8,364
Satisfied by:
Cash 684 4,267 4,951
Deferred consideration 163 2,625 2,788
Shares - 625 625
Total consideration 847 7,517 8,364
Net cash outflow arising on acquisition
Cash consideration (684) (4,267) (4,951)
Cash and bank balances acquired - 432 432
Bank loans and overdrafts assumed (532) - (532)
Net cash outflow (1,216) (3,835) (5,051)
9. Notes to the cash flow statement 2014 2013
GBP000 GBP000
Operating profit before exceptional items 6,646 6,251
Adjustments for:
Amortisation of intangible assets 428 295
Depreciation of property, plant and equipment 1,020 1,036
Gain on disposal of property, plant and equipment (8) (12)
Operating cash flows before movements in working
capital 8,086 7,570
(Increase)/decrease in inventories (1,194) 189
Increase in receivables (4,119) (809)
Increase in payables 4,193 765
Decrease in provisions (30) (693)
Adjustment for pension scheme funding (exc. additional
contribution) (2,854) (2,493)
Cash generated by operations 4,082 4,529
Income taxes paid (793) (678)
Interest paid (446) (424)
Net cash inflow from operating activities 2,843 3,427
Movement in net debt
Increase in cash and cash equivalents in the year 1,132 783
Increase in bank borrowings in the year (11,349) -
Decrease in bank loans 6,000 -
New finance lease facilities (683) -
Repayment of obligations under finance leases 83 126
Movement in net debt in the year (4,817) 909
Opening net debt (5,915) (6,824)
Closing net debt (10,732) (5,915)
Net debt comprises:
Cash and cash equivalents 1,250 477
Bank borrowings treated as overdrafts and loans - (359)
Cash and cash equivalents in statement of cash
flows 1,250 118
Bank borrowings (2013 - Bank loans) (11,349) (6,000)
Net bank debt (10,099) (5,882)
Obligations under finance leases Due within one
year (155) (33)
Due outwith one year (478) -
Closing net debt (10,732) (5,915)
Cash and cash equivalents (which are presented as a single class
of asset on the face of the balance sheet) comprise cash at bank
and other short-term highly liquid investments with maturity of
three months or less.
2013 bank borrowings totalling GBP6.4 million were refinanced in
February 2014.
10. Pension scheme
Macfarlane Group PLC sponsors a defined benefit pension scheme
for certain active and former UK employees - the Macfarlane Group
PLC Pension & Life Assurance Scheme (1974) ("the scheme"). The
two major trading subsidiaries, Macfarlane Group UK Limited and
Macfarlane Labels Limited are the other two sponsoring employers of
the scheme.
The scheme is administered by a separate Board of Trustees
composed of employer nominated representatives and member nominated
Trustees and is legally separate from the Group. The assets of the
scheme are held separately from those of the Group in managed funds
under the supervision of the Trustees. The Trustees are required by
law to act in the interest of all classes of beneficiary in the
scheme and are responsible for investment policy and the day-to-day
administration of benefits. The scheme was closed to new entrants
during 2002.
The scheme provides qualifying employees with an annual pension
of 1/60 of pensionable salary for each completed year's service on
attainment of a normal retirement age of 65. Pensionable salaries
were frozen for the remaining active members at the levels current
at 30 April 2009 with the change taking effect from 30 April 2010.
As a result no further salary inflation applies for active members
who elected to remain in the scheme. Active members' benefits also
include life assurance cover, albeit the payment of these benefits
is at the discretion of the Trustees of the scheme.
On withdrawing from active service a deferred member's pension
is revalued from the time of withdrawal until the pension is drawn.
Revaluation in deferment is statutory and since 2010 has been
revalued on the Consumer Price Index ("CPI") measure of inflation.
Revaluation of pensions in payment is a blend of fixed increases
and inflationary increases depending on the relevant periods of
accrual of benefit. For pensions in payment, the inflationary
increase is currently based on the Retail Prices Index ("RPI")
measure of inflation.
During 2012, Macfarlane Group PLC made the decision to amend
benefits for pensioner, deferred and active members in the defined
benefit pension scheme by offering a Pension Increase Exchange
("PIE") option for deferred and active members after 1 May
2012.
The Group will consider a number of further actions to reduce
the deficit in 2015.
Balance sheet disclosures
The assets in the scheme, the net liability position for the
scheme and the expected rates of return have been based on the
results of the actuarial valuation as at 1 May 2014, updated to the
year-end.
Fair value Fair value Fair value Fair value Fair value
2014 2013 2012 2011 2010
GBP000 GBP000 GBP000 GBP000 GBP000
Asset class
Equities 15,893 15,079 14,474 12,782 26,577
Multi-asset diversified
funds 18,541 16,414 13,026 12,206 -
Liability-driven investment
funds 22,195 - - - -
Bonds 11,263 22,534 23,544 21,806 18,436
Other (cash) 98 211 305 174 280
Fair value of assets 67,990 54,238 51,349 46,968 45,293
Present value of scheme
liabilities (81,863) (70,134) (70,247) (67,452) (61,018)
Deficit in the scheme (13,873) (15,896) (18,898) (20,484) (15,725)
Related deferred tax asset
(see note 11) 2,775 3,179 4,346 5,121 4,246
Net pension scheme liability (11,098) (12,717) (14,552) (15,363) (11,479)
The Trustees review the investments of the scheme on a regular
basis and consult with the Company regarding any proposed changes
to the investment profile. At the start of February 2014, the
investment in fixed interest government gilts was transferred into
a liability-driven investment fund, which concentrates solely on
interest rate and inflation protection strategies, to provide a
more effective hedge against the impact of both interest rates and
inflation on the liabilities in the scheme.
As a result, despite the reductions in bond yields in 2014
causing an increase in liabilities, improved investment returns
have helped offset this.
The scheme's liabilities were calculated on the following bases
as required under IAS 19:
Assumptions 2014 2013 2012 2011 2010
Discount rate 3.50% 4.50% 4.40% 4.80% 5.50%
Rate of increase in salaries 0.00% 0.00% 0.00% 0.00% 0.00%
Inflation assumption (RPI) 3.00% 3.40% 3.00% 3.00% 3.50%
Inflation assumption (CPI) 2.10% 2.50% 2.30% 2.20%
Spouse's pension assumption
Pensioner members
Deferred and active members 70% 70% 70% 90% 90%
80% 80% 80% 90% 90%
Life expectancy beyond normal
retirement date of 65
Male 22.7 years 22.6 years 22.4 years 22.3 years 21.5 years
Female 25.1 years 25.1 years 24.6 years 24.6 years 24.0 years
2014 2013 2012 2011 2010
Movement in scheme deficit GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January (15,896) (18,898) (20,484) (15,725) (20,366)
Current service cost (126) (148) (146) (150) (119)
Employer contributions 5,480 2,748 2,583 2,169 2,705
Pension Increase Exchange
gain - - 1,855 - -
Net finance cost (594) (775) (930) (333) (735)
Curtailments and settlements - - - (13) 1,250
Remeasurement of pension
scheme liability (2,737) 1,177 (1,776) (6,432) 1,540
At 31 December (13,873) (15,896) (18,898) (20,484) (15,725)
Funding
UK pension legislation requires that pension schemes are funded
prudently. Following the completion of the triennial actuarial
valuation at 1 May 2014, Macfarlane Group PLC is now paying deficit
reduction contributions in accordance with an agreement with the
scheme trustees to reduce the deficit over 10 years.
The next triennial actuarial valuation of the scheme is due at 1
May 2017.
Sensitivity to key assumptions
The key assumptions used for IAS 19 are discount rate, inflation
and mortality. If different assumptions were used, then this could
have a material effect on the results disclosed. Assuming all other
assumptions are held static then a movement in the following key
assumptions would affect the level of the deficit as shown
below:-
2014 2013 2012
Assumptions GBP000 GBP000 GBP000
Discount rate movement of +0.1% 1,285 1,192 1,194
Inflation rate movement of +0.1% (393) (281) (281)
Mortality movement of +0.1 year
in age rating (295) (231) (232)
The sensitivity information has been prepared using the same
method as adopted when adjusting the results of the latest funding
valuation to the balance sheet date and is consistent with the
approach adopted in previous years.
11. Deferred tax 2014 2013
GBP000 GBP000
At 1 January 3,375 4,525
Inherited on acquisitions (858) -
Charged in income statement (839) (403)
Credited/(harged) in other comprehensive income
Remeasurement of pension scheme liability 548 (271)
Long-term corporation tax rate change - (476)
At 31 December 2,226 3,375
On retirement benefit obligations (see note 10) 2,775 3,179
Corporation tax losses 470 449
Disclosed as deferred tax asset 3,245 3,628
On other intangible assets
Disclosed as a deferred tax liability (1,019) (253)
At 31 December 2,226 3,375
The Chancellor's Autumn Statement on 5 December 2012 announced
that the UK corporation tax rate would reduce to 20% by 2015. This
was substantively enacted on 2 July 2013 and has been reflected in
these financial statements.
12. Share capital 2014 2013
GBP000 GBP000
Allotted, issued and fully paid:
At 1 January 28,755 28,755
Issued during the year 2,398 -
At 31 December 31,153 28,755
Share premium
At 1 January -
Issue of new shares during the year 1,227
Expenses of share issue (209)
At 31 December 1,018
On 5 September 2014, the Company acquired the whole issued share
capital of Network Packaging Limited. As part of initial
consideration, the Company issued 1,592,360 ordinary shares of 25p
each at a value of 39.25p per share, which were admitted to the
official List of the London Stock Exchange on 12 September
2014.
On 8 September 2014, the Company announced a placing of
8,000,000 ordinary shares of 25p each at a price of 37.50p per
share. The placing was approved at a General Meeting of the Company
on 1 October 2014 and the shares were admitted to the official List
of the London Stock Exchange on 2 October 2014.
Total proceeds raised for both of these issues were
GBP2,791,000, net of issue expenses of GBP209,000.
13. Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed.
Details of individual and collective remuneration of the
Company's Directors and dividends received by the Directors for
calendar year 2014 will be disclosed in the Group's Annual Report
for the year ending 31 December 2014.
Peter Atkinson, the Group's Chief Executive, exercised options
over 551,372 ordinary shares on 8 May 2014. The consideration paid
for the shares was GBP143,357. He then sold 442,500 ordinary shares
for a consideration of GBP194,700. As a result of these
transactions, his beneficial holding in Macfarlane Group PLC
increased from 745,300 ordinary shares to 854,172 ordinary shares,
representing 0.74% of the issued share capital of 115,019,000
ordinary shares.
The directors are satisfied that there are no other related
party transactions occurring during the year which require
disclosure.
14. Posting to shareholders and Annual General Meeting
The Annual Report and Accounts will be sent to shareholders on
Friday 27 March 2015 and will be available to members of the public
at the Company's Registered Office, 21 Newton Place, Glasgow G3 7PY
from 4 April 2015.
The Annual General Meeting will take place at the Thistle Hotel,
Cambridge Street Glasgow at 12 noon on Tuesday 5 May 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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