Regulatory Story
Go to market news section View chart   Print
RNS

Half Yearly Report

Released 13:26 30-Nov-2012

RNS Number : 4584S
Associated British Engineering PLC
30 November 2012
 



 

                               

 

 

 

 

 

 

 

 

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

INTERIM REPORT

 

FOR THE SIX MONTHS ENDED

 

30 SEPTEMBER 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

INTERIM REPORT

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

 

 

CONTENTS                                                                                                                                                                                Page

 

 

Chairman's statement                                                                                                                                                                      1

 

 

Responsibility statement                                                                                                                                                                2

 

 

Group income statement & group statement of comprehensive income                                                                                3

 

 

Group interim balance sheet                                                                                                                                                           4

 

 

Group interim statement of changes in shareholders' equity                                                                                                   5

 

 

Group interim cash flow statement                                                                                                                                               6 - 7

 

 

Notes to the interim report                                                                                                                                                           8 - 15

 

 

 

 


ASSOCIATED BRITISH ENGINEERING PLC

 

CHAIRMAN'S STATEMENT

 

INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

SUMMARY OF RESULTS





Six months to

30 September 2012

£'000

Six Months to

30 September 2011

£'000

Year to

 31 March 2012

£'000





Revenue

1,184

1,824

3,342

Profit/(loss) before Tax

(120)

(186)

(629)





Earnings/(loss) per Share




Basic

(6p)

(14p)

(47p)

Diluted

(6p)

(14p)

(47p)

 

The Group incurred a pre-tax loss of £120,000 for the six-month period to 30 September 2012. This is largely due to a steady reduction in the order book for our only operating subsidiary, British Polar Engines Limited ('BPE'). It is notable that the current levels of enquiries, whilst showing improvement from the first half lows, are subject to extreme competition from what we consider to be unrealistic pricing. It is also noticeable that orders are being delayed by many customers and we believe this to be due to the prolonged recession in many of the markets in which we operate. The management of BPE are doing their best to counteract this but cannot confidently forecast any material improvement over the remainder of the financial year ending 31 March 2013. The Board and the BPE management team continue to do their utmost to improve this situation and will closely monitor it on a regular basis. It is recognised that BPE's business is a volatile one dependent in particular on the oil drilling market and on the world economy in general.

 

Following the capital restructuring carried out earlier in the year, the Board is reviewing a number of options as to the future development of the company.

 

The Board continues to keep the central costs of the company at a very low level and is working to ensure that a suitable investment is secured which will form a solid basis for the enhancement of shareholder value.

 

 

 

 

 

 

 

 

 

 

 

D A H Brown

Chairman

30 November 2012

 

 



ASSOCIATED BRITISH ENGINEERING PLC

 

RESPONSIBILITY STATEMENT

 

INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

The Directors of the Company confirm to the best of their knowledge that:

 

a)     the Interim Report has been prepared in accordance with IAS 34;

 

b)    the Interim Report includes a fair view of the information required by DTR 4.2.7R, being an indication of the important events that have occurred during the first six months of the financial year and a description of the principal risks and uncertainties for the remaining six months of the year; and

 

c)     the Interim Report includes a fair review of the information required by DTR 4.2.8R, being disclosure of related party transactions and changes therein since the last Annual Report

 

By order of the Board

 

 

 

D A H Brown

Chairman

30 November 2012

 

 

 

 

 

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP INCOME STATEMENT

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 



Six months to

Six months to

Year to



30 September

30 September

31 March



2012

2011

2012


 

£'000

£'000

£'000






REVENUE


1,184

1,824

3,342



 

 

 

Operating costs


(1,312)

(2,010)

(2,813)



----------------

----------------

-------------

OPERATING (LOSS)/PROFIT


(128)

(186)

529



 

 


Finance expense


(14)

(9)

(1,188)

Finance income


22

9

30



-------------

-------------

-------------

LOSS BEFORE TAXATION


(120)

(186)

(629)



 

 

 

Taxation


7

-

(28)



-------------

-------------

-------------

LOSS FOR PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY


 

(113)

 

(186)

 

(657)



======

======

======


 

 

 

 

EARNINGS/(LOSS) PER SHARE ON PROFIT /

 

 

 

 

(LOSS) FOR THE  YEAR ATTRIBUTABLE TO

 

 

 

 

EQUITY HOLDERS OF THE PARENT COMPANY

 

 

 

 


 

 

 

 

BASIC AND DILUTED

 

(6p)

(14p)

(47p)

 

 

GROUP STATEMENT OF COMPREHENSIVE INCOME

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 



Six months to

Six months to

Year to



30 September

30 September

31 March



2012

2011

2012


 

£'000

£'000

£'000



 

 

 

Loss for the period


(113)

(186)

(657)

 


------------

------------

------------

Other comprehensive income


 

 


Actuarial losses on retirement benefit obligation


-

-

643

 


------------

------------

-----------

TOTAL COMPREHENSIVE (EXPENSE)/INCOME


 

 


FOR THE YEAR


(113)

(186)

(14)



======

======

======

 

 

 

All activities are classified as continuing.



ASSOCIATED BRITISH ENGINEERING PLC                                                                       Company number: 00110663

 

GROUP INTERIM BALANCE SHEET

 

30 SEPTEMBER 2012

 

 

 

At 30 September

At 30 September

At 31

March

 

2012

2011

 2012

 

£'000

£'000

£'000

ASSETS

 



Non-current assets

 



Property, plant and equipment

83

62

68

 

-------------

-------------

-------------

Current assets




Inventories

1,095

1,136

1,089

Trade and other receivables

341

556

510

Held for trading investments

99

75

69

Cash and cash equivalents

3,903

3,981

4,031

 

-------------

-------------

-------------

 

5,438

5,748

5,699

 

-------------

-------------

-------------

Total assets

5,521

5,810

5,767

 

======

======

======

 




EQUITY AND LIABILITIES




Called up share capital

51

2,627

51

Deferred shares

2,594

-

2,594

Share premium account

5,370

5,038

5,370

Other components of equity

11

11

11

Retained earnings

(4,572)

(5,093)

(4,459)

 

-------------

-------------

--------------

Equity attributable to the Company's Equity shareholders

3,454

2,583

3,567

 

-------------

-------------

-------------

 




LIABILITIES




Non-current liabilities




Retirement benefit obligation

975

1,852

975

Cumulative preference shares

-

476

-

Loan notes

555

-

555

 

-------------

-------------

-------------

 

1,530

2,328

1,530

 

-------------

-------------

-------------

Current liabilities




Trade and other payables

516

676

642

Current tax liabilities

21

223

28

 

-------------

-------------

-------------

 

537

899

670

 

-------------

-------------

-------------

Total liabilities

2,067

3,227

2,200

 

-------------

-------------

-------------

Total equity and liabilities

5,521

5,810

5,767

 

======

======

======

 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED                        30 SEPTEMBER 2012

 

 

 

Share Capital

Share Premium

Deferred

Shares

Other Reserve

Retained Earnings

 

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

 







Balance at 1 April 2011

2,627

5,038

-

11

(4,907)

2,769

 






 

Profit for the period

-

-

   -

-

(186)

(186)

 

-------------

---------------

-----------------

---------------

--------------

--------------

Balance at 30 September 2011

2,627

5,038

-

11

(5,093)

2,583

 







Loss for the period

-

-

   -

-

(471)

(471)

 







Other comprehensive income for the period







Actuarial gain in defined benefit plan

-

-

-

-

643

643

 







Capital restructuring

(2,576)

332

2,594

-

462

812

 

--------------

--------------

------------------

--------------

--------------

---------------

Balance at 1 April 2012

51

5,370

2,594

11

(4,459)

3,567

 






 

Loss for the period

-

-

-

-

(113)

(113)

 

-------------

---------------

----------------

---------------

--------------

--------------

Balance at 30 September 2012

51

5,370

2,594

11

(4,572)

3,454

 

=======

=======

========

=======

=======

=======

                               

 

 



ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP INTERIM CASH FLOW STATEMENT

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

 

Six months to

Six months to

Year to

 

30 September

2012

30 September 2011

31 March

2012

 

£'000

£'000

£'000

Cash flows from operating activities




Cash (used in) / generated from operations

(74)

38

(20)

Interest received

22

9

30

Interest paid

(14)

-

(2)

 

---------------

---------------

-----------------

Net cash from operating activities

(66)

47

8

 

---------------

---------------

--------------

Cash flows from investing activities




Proceeds from sale of equipment

-

-

10

Purchase of equipment

(52)

(1)

(5)

Purchase of investments held for trading / (sale proceeds)

(10)

(10)

30

 

---------------

---------------

--------------

Net cash used in investing activities

(62)

(11)

35

 

---------------

---------------

--------------

Cash flows from financing activities




Cash raised from open offer of shares

-

-

43

 

---------------

---------------

--------------

Net cash generated from financing activities

-

-

43

 

---------------

---------------

--------------

 




Net increase/(decrease) in cash and cash equivalents

(128)

36

86

Cash and cash equivalents at beginning of period

4,031

3,945

3,945

 

-------------

-------------

--------------

Cash and cash equivalents at end of period

3,903

3,981

4,031

 

=======

=======

=======

 



ASSOCIATED BRITISH ENGINEERING PLC

 

GROUP INTERIM CASH FLOW STATEMENT (continued)

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

 

CASH FLOW FROM OPERATING ACTIVITIES

Six months to

Six months to

Year to

 

30 September

2012

30 September

2011

31 March

 2012

 

£'000

£'000

£'000

 




Loss before taxation

(120)

(186)

(629)

Adjustments for:

 

 


Depreciation

36

36

35

Interest income

(22)

(9)

(30)

Finance expense

14

9

858

Pension scheme interest expense

-

-

156

Cash paid in excess of current pensions service cost

-

-

(390)

Profit on disposal of equipment

-

 

(9)

Loss on disposal of Held for Trading investments

-

-

32

Changes in working capital:

 

 

 

(Increase) / decrease in inventories

(6)

123

170

Decrease in trade and other receivables

170

195

240

Decrease in payables

(126)

(162)

(217)

Decrease / (increase) in investments

(20)

32

(12)

 

---------------

---------------

------------

 

(74)

38

204

Taxes paid

-

-

(224)

 

---------------

---------------

--------------

Cash (used in) / generated from operations

(74)

38

(20)

 

=======

=======

=======

 




 

 



ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE INTERIM REPORT

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

1.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





 

BASIS OF PREPARATION

 

The company is incorporated in the United Kingdom under the Companies Act 2006.

 

This Group Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the disclosure requirements of the Listing Rules.  The policies set out below have been consistently applied to all periods presented.

 

This Group Interim Report is not audited.

 

The results for the year ended 31 March 2012 have been extracted from the statutory consolidated financial statements of Associated British Engineering Plc, which are prepared in accordance with IFRS, as adopted by the EU.

 

GOING CONCERN

 

The financial statements have been prepared on the going concern basis.  There have been no changes to accounting policies in the 6 month period to 30 September 2012. Based on the group's budgets and cash forecasts, the Board considers that the group has sufficient resources to meet all necessary outgoings and to enable it to continue in operational existence for the foreseeable future.

 

BASIS OF CONSOLIDATION

 

The Group interim report incorporates the financial statements of Associated British Engineering plc and its subsidiary undertakings to 30 September each year. All inter-company balances and transactions have been eliminated in full. The Group interim report includes the results of subsidiaries acquired or disposed of during the year from or to the effective date of acquisition or disposal.

 

REVENUE RECOGNITION

 

Revenue is measured at the fair value of the consideration receivable by the Group for goods supplied and services provided, excluding value added tax and trade discounts.

 

Revenue from the sale of spare parts is recognised when the goods are dispatched or, if under a bill and hold arrangement, when they are available for dispatch to a specific customer. Revenue from the sale of engines is recognised in accordance with the performance of contractual terms and specifically when the engines have been satisfactorily tested in accordance with contractual terms. Revenue from servicing and repair work is recognised when work is completed

 

ACCOUNTING ESTIMATES AND JUDGEMENTS

 

Management are required, in accordance with IFRS, to exercise judgement and to make estimates and assumptions regarding the application of accounting policies and the resulting effect on reported amounts of assets, liabilities, income and expenses. These estimates and assumptions are based on historical experience and a review of current conditions prevailing at the time but actual results may differ from these estimates. Any such revision is recognised in the financial statements in the period in which the change in circumstance is detected.

 

Accounting Judgements

 

The key areas where management have exercised judgement in the period, and the thought process undertaken, are as follows:

 

Pension Scheme

The Directors are in regular contact with the Trustees of the pension scheme in connection with the following areas where judgement is exercised: the assumptions underpinning the actuarial valuation, continued negotiations regarding the pension scheme and in relation to the payment plan.


 

 

 

ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE INTERIM REPORT (continued)

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

1.         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)

 

         Accounting Judgements (continued)

 

Pension Scheme (continued)

The Directors then assess the relevant estimates and assumptions made to ensure that all statutory obligations are met, where possible. In evaluating the assumptions underpinning the actuarial valuation the Directors have sought the professional advice of a firm of actuaries who prepare the valuation according to certain industry standards and norms.

 

Preference shares

The Group was funded by a combination of equity and debt instruments, the latter comprising 555,000 7% £1 cumulative preference shares and 157,395 8% £1 cumulative redeemable preference shares, with a total nominal value of £712,395.

 

During the year to 31 March 2012, a capital restructuring exercise led to the redemption in full of the 8% preference shares and cancellation of the 7% Preference Shares, including the associated arrears of dividends.

 

Loan notes

The Group is also funded by £555,000 of loan notes with a 6% per annum coupon rate.  The loan notes were issued as part of the share restructuring exercise referred to above.  IAS 39 states that financial liabilities should initially be recognised at fair value. The loan notes have been recognised at their fair value of £555,000 which is considered to be the same as their amortised cost.

 

            Accounting Estimates

 

The accounting estimate having an impact on carrying amounts of assets and liabilities in the reporting period is as follows:

 

Inventories

Inventories held by the Group consist of raw material (mainly components), work in progress (manufactured engine parts) and finished goods (both purchased and manufactured engine parts). A specific provision is made, on a 100% basis, for all stock lines that are obsolete or slow moving for periods in excess of four years. A general provision is made of between 5%, 12.5%, 25% and 50% over all stock lines that have not moved for one, two, three and four years respectively.

 

The directors review their assumptions and accounting estimates, along with the accounting policies adopted in preparing these financial statements, on a regular basis and recognise any change in the period in which circumstances vary.

 

INVENTORIES AND IMPAIRMENT OF INVENTORIES

 

Inventories of raw materials, work in progress and finished goods are valued at the lower of cost and net realisable value.  Work in progress and finished goods include an appropriate allocation of overheads.

 

Cost is calculated on a first in, first out basis. Net realisable value is the estimated selling price in the normal course of business, less estimated costs of completion and provision is made for obsolete, slow moving and defective inventories.

 



ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE INTERIM REPORT (continued)

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

1.         SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

LEASED ASSETS

 

Leases of property, plant and equipment, where the Group has substantially all the risks and rewards of ownership, are classified as finance leases. Assets held under finance leases are capitalised at lease inception at the lower of the asset's fair value and the present value of the minimum lease payments. Obligations related to finance leases, net of finance charges in respect of future periods, are included as appropriate within borrowings. The interest element of the finance cost is charged to the income statement over the life of the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant or equipment is depreciated on the same basis as owned plant and equipment or over the life of the lease, if shorter.

 

Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Operating lease rentals (net of any related lease incentives) are charged against profit on a straight line basis over the period of the lease.

 

PROPERTY, PLANT AND EQUIPMENT

 

Property, plant and equipment are stated at cost less depreciation and any impairment in value.  Freehold land is not depreciated. Depreciation is calculated to write down the cost of all property, plant and equipment, less its residual value, by annual instalments over their expected useful lives on the following bases:

 

Freehold buildings                  5 per cent

Plant and machinery               7½- 33⅓ per cent

 

These useful lives and residual values are reviewed in each financial period.

 

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, over the term of the relevant lease.  The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised as income.

 

The carrying values of plant and machinery are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.  If any such indication exists, and where the carrying values exceed the estimated recoverable amount, the assets or cash generating units are written down to their recoverable amounts.

 

TAXATION

 

The tax expense represents the sum of the tax currently payable and deferred tax.

 

The tax currently payable is based on taxable profit for the year.  Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.  The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

 

Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. The deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

 

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.



 

ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE INTERIM REPORT(continued)

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

1.         SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (continued)

 

FOREIGN CURRENCIES

 

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction.  Monetary assets and liabilities in foreign currencies are translated at the exchange rates ruling at the balance sheet date.  All exchange differences are dealt with through the income statement.

 

RETIREMENT BENEFIT COSTS

 

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.  Payments made to state-managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the Group's obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.

 

For defined benefit retirement schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.  Actuarial gains and losses are recognised in full in the period in which they occur.  They are recognised outside the group income statement and presented in the group statement of comprehensive income in accordance with the provisions stated within IAS 19 'Employee benefits'. 

 

Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested.

 

The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets.  Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the plan.

 

CASH AND CASH EQUIVALENTS

 

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short term deposits with a maturity of three months or less which are subject to an insignificant risk of changes in value.

 

FINANCIAL INSTRUMENTS

 

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities and are presented as such in the balance sheet. 

 

Finance costs and gains or losses relating to financial liabilities are included in the income statement.  Finance costs are calculated so as to produce a constant rate of charge on the outstanding liability. Where none of the contractual terms of share capital meet the definition of a financial liability then this is classed as an equity instrument.  Dividends and distributions relating to equity instruments are debited direct to equity.

 

Trade and other receivables

Trade and other receivables are originally recognised at fair value. Subsequent measurement is at amortised cost using the effective interest rate method. A provision against trade receivables is made when there is objective evidence that the group will not be able to collect all amounts due to it in accordance with the original terms of those receivables.

 

Trade payables

Trade payables are originally recognised at fair value, net of transaction costs.  Subsequent measurement is at amortised cost using the effective interest rate method.



ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE INTERIM REPORT (continued)

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

1.         SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (continued)

 

FINANCIAL INSTRUMENTS (continued)

 

Investments in securities

Investments are recognised and derecognised on a trade date where a purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, with all transaction costs being written off to the income statement.

 

Investments are classified as held for trading and are measured at subsequent reporting dates at fair value.  Gains and losses arising from changes in fair value held for trading financial assets are included in the income statement for the period. 

 

LOAN NOTES

Loan notes are initially recognised at their fair value and subsequently held at amortised cost.

 

 

SHARE BASED PAYMENTS AND SHARE OPTIONS

 

Former employees of the Group have received remuneration in the form of share based payment transactions, whereby employees render services in exchange for rights over shares ('equity settled transactions').  The cost of these transactions is measured by reference to their fair value at the date at which the options are granted.  The fair value is determined by using the Black-Scholes Option pricing model.  There has been no change recognised with respect to the share options as all those in issue fall outside the scope of IFRS 2, having been granted before November 2002.

 

IMPAIRMENT OF TANGIBLE ASSETS

 

At each balance sheet date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss.  If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).  Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.   

 

Recoverable amount is the higher of fair value less costs to sell and value in use.  In assessing value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. 

 

An impairment loss is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years.  A reversal of an impairment loss is recognised as income immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

 

            

 

 



ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE INTERIM REPORT (continued)

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

1.         SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (continued)

 

             EQUITY AND RESERVES

 

Share capital represents the nominal value of shares that have been issued except for the preference shares classified as debt.

 

Deferred shares represent shares arising from the sub-division of ordinary shares of £2.

 

Share premium includes any premiums received on issue of share capital.  Any transaction costs associated with the issuing of shares are deducted from share premium, net of any related income tax benefits.

 

Retained earnings include all current and prior period retained profits and losses. 

 

Other reserves relate to movements not classified in any of the reserves detailed above.

 

All transactions with owners of the parent are recorded separately within equity.

 

            SEGMENTAL REPORTING

 

The standard requires financial information to be disclosed in the financial statements in the same format in which it is disclosed to the chief operating decision-maker.

 

The chief decision-maker has been identified as the Board, at which level strategic decisions are made.

 

2.         SEGMENTAL ANALYSIS

 

 

The following table shows an analysis of the Group's external sales by geographical market:

 


 


Six months to

Six months to

Year to

 


30 September

30 September

31 March

 


2012

2011

2012

 


£'000

£'000

£'000

 





 

United Kingdom

496

785

1,234

 

Europe

484

628

1,356

 

Far East and Australasia

188

231

317

 

Africa

7

61

125

 

North and South America

9

119

279

 

Russia

-

-

5

 

Middle East

-

-

26

 


-------------

-------------

-------------

 

 

1,184

1,824

3,342

 


======

======

======

 

All of the above revenue arises from diesel and related engineering activities and originates in the United Kingdom.

 

In the periods detailed above all of the assets held by the group were located in the United Kingdom and all capital expenditure was incurred within the United Kingdom.

 



ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE INTERIM REPORT (continued)

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

2.         SEGMENTAL ANALYSIS (continued)

 

Operating segments

The following segment information has been prepared in accordance with IFRS 8, "Operating Segments", which defines requirements for the disclosure of financial information of an entity's operating segments.

 

The Board consider the Group on an individual company basis.  Reports by individual companies are used by the chief decision-maker in the Group.  Significant operating segments are Associated British Engineering Plc and British Polar Engines Limited.

 

The Group's operations are located in the United Kingdom.  Any transactions between business units are on normal commercial terms and conditions.

 

British Polar Engines Limited's activities consist of the manufacture and supply of diesel engines and spare parts for diesel engines together with associated repair work.

 

Associated British Engineering Plc is the group holding company.

 

Six months to

Associated British Engineering Plc

British Polar Engines Ltd

Consolidated

30 September 2012

£'000

£'000

£'000





External sales

-

1,184

1,184


------------

------------

-----------

Segment result (PBIT)

(124)

(4)

(128)


-------------

------------

-----------

Net finance expenses



8

Taxation



7




-----------

Profit after tax



(113)




=====

Other information




Capital additions

-

52

52





Balance sheet




Segment assets

283

5,238

5,521


=====

======

=====

 

Six months to

Associated British Engineering Plc

British Polar Engines Ltd

Consolidated

30 September 2011

£'000

£'000

£'000





 

External sales

-

1,824

1,824

 


----------

----------

----------

 

Segment result (PBIT)

(197)

11

(186)

 


----------

----------


 

Net finance expenses



-

 

Taxation



-

 




----------

 

Profit after tax



(186)

 




=====

 

Other information




 

Capital additions

-

1

1

 





 

Balance sheet




 

Segment assets

612

5,198

5,810

 


=====

======

======

 

ASSOCIATED BRITISH ENGINEERING PLC

 

NOTES TO THE INTERIM REPORT (continued)

 

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012

 

 

2.         SEGMENTAL ANALYSIS (continued)

 

There was one customer who contributed more than 10% of the total group revenue for the six months ending 30 September 2012 (2011: three customers).

 

3.

PRINCIPAL RISKS AND UNCERTAINTIES

 

 

 

In light of the industry in which our only trading subsidiary, BPE, operates there are a number of risks and uncertainties which could have an impact on the performance of the Group for the remaining six months of the year.

 

The key risks and uncertainties have been reflected in Note 1 to these accounts, Summary of Significant Accounting policies, with the following relating to the operational risks and uncertainties:

 

·      Dependency on key markets;

·      Timing and renewal of key contracts;

·      Foreign exchange risk;

·      Recruitment and retention of key employees;

·      Identification of acquisitions that fit the Group's strategy;

·      Compliance with laws and regulations

 

The Directors meet on a regular basis to discuss these risks and uncertainties and appropriate actions are taken to mitigate these risks and to develop suitable strategies to protect the long term performance of the Group.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR WGGQGGUPPGWU
Close


London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

 


Half Yearly Report - RNS