Regulatory Story
Go to market news section View chart   Print
RNS
MS International PLC  -  MSI   

Half-year Report

Released 07:00 04-Dec-2018

RNS Number : 2921J
MS International PLC
04 December 2018
 

 












MS INTERNATIONAL plc





Unaudited Interim Condensed

 

Group Financial Statements

 

27th October, 2018

 


 



 

 



EXECUTIVE DIRECTORS

Michael Bell

Michael O'Connell

Nicholas Bell

 




NON EXECUTIVE

Roger Lane-Smith

David Pyle

David Hansell

 



SECRETARY

David Kirkup

 




REGISTERED OFFICE

Balby Carr Bank

Doncaster

DN4 8DH

England

 




PRINCIPAL OPERATING DIVISIONS

Defence

Forgings

Petrol Station Branding

Petrol Station Superstructures

 


 



 

Chairman's Statement

                       

For the first half year ended 27th October 2018, profit before taxation increased to £3.19m (2017 - £1.64m), on revenue of £37.74m (2017 - £34.63m). Earnings per share amounted to 15.2p (2017 - 7.8p).

 

It was a period of admirable progress for the Group overall, with operating divisions confronting changing market conditions with timely and appropriate action to ensure they took advantage of opportunities as they arose.

 

That determined approach to their respective markets is backed by the Group's strategy of continued investment in each of the divisions to ensure they are at their most effective. Such investment remains a priority and the rewards of this approach are evident in our latest results. Despite that ongoing investment, our long-established policy and commitment to fostering and maintaining a robust balance sheet has been validated with further growth in net cash to £16.65m, compared to £15.87m at the last year end.

 

Notable and most encouraging performances were achieved by the 'Forgings'; 'Petrol Station Superstructures' and 'Petrol Station Branding', divisions.  However, our 'Defence' division - as a constituent part of the depressed UK defence equipment industry - is contending with the consequences of a seriously subdued home market, aggravated by a persistent lack of any real clarity, as to future demand.

 

The 'Defence' division is countering the effect of the challenges to the domestic market by focusing efforts on its international marketing activities in addition to our own investment in private venture funding of the design and development of both our new and existing weapon systems to meet the varied requirements and perceived opportunities outside of the UK.  It is an essential, if costly strategy, but one which should enrich our international presence and reputation leading to enhanced sales. 

 

The 'Forgings' division is making very good progress, reflecting the increasing benefits of a much improved inter-company supply chain between the UK and our maturing production capability at the new manufacturing and marketing facility in the United States. Operations in South America are holding their own at a time when some rather problematic national economic circumstances are prevailing in that region of the world.

 

The 'Petrol Station Superstructures' division is reaping the benefits of a marked recovery in both UK and mainland European markets. This division remains very well positioned to take full advantage of the growing number of opportunities coming through.

 

The 'Petrol Station Branding' division has continued to prosper and, in particular, grow the business across both an expanding customer base and additional regional markets. As a result, the division is making a welcome and substantial contribution to the Group's financial performance, pleasingly exceeding our expectations since the acquisition and subsequent expansion of the division from its Netherlands base into both Germany and the UK.   

 

All such matters considered, the Board has declared a maintained interim dividend per share of 1.75p (2017-1.75p) payable to shareholders on the 4th January 2019.

 

 

 

Michael Bell                                                                                                3rd December 2018



 

 

MS INTERNATIONAL plc 



Michael Bell


Tel: 01302 322133




Shore Capital (Nominated Adviser and Broker)



Patrick Castle


Tel: 020 7408 4090

Daniel Bush



 

 



 

Independent review report to MS INTERNATIONAL plc


Introduction


We have reviewed the condensed set of financial statements in the half-yearly financial report for the 26 weeks ended 27 October 2018 which comprises the Interim condensed consolidated income statement, the Interim condensed consolidated statement of comprehensive income, the Interim condensed consolidated statement of financial position, the Interim consolidated statement of changes in equity, the Interim consolidated cash flow statement and the related notes. We have read the other information contained in the half-yearly financial report which comprises only the Chairman's Statement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.


This report is made solely to the Company, as a body, in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company as a body, for our review work, for this report, or for the conclusion we have formed.


Directors' responsibilities


The half-yearly financial report is the responsibility of, and has been approved by, the directors. As disclosed in note 2, the annual financial statements of the group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.

Our responsibility


Our responsibility is to express a conclusion to the Company on the condensed set of financial statements in the half-yearly financial report based on our review.


Scope of review


We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.


Conclusion


Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the 26 weeks ended 27 October 2018 is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.





Grant Thornton UK LLP

Statutory Auditor, Chartered Accountants

Sheffield

3 December 2018

 



 

Interim condensed consolidated income statement







26 weeks ended 27th Oct., 2018


26 weeks ended 28th Oct., 2017



unaudited


unaudited



£000


£000






Products


30,100


28,173

Contracts


7,642


6,456











Revenue


37,742


34,629






Cost of sales


(27,386)


(25,926)











Gross profit


10,356


8,703






Distribution costs


(1,565)


(1,575)

Administrative expenses


(5,525)


(5,354)











Operating profit


3,266


1,774






Finance income/(cost)


2


(43)

Other finance costs - pension


(82)


(91)











Profit before taxation


3,186


1,640






Tax expense


(679)


(356)











Profit for the period attributable to equity holders of the parent


2,507


1,284
















Earnings per share: basic and diluted


15.2p


7.8p











 

 

Interim condensed consolidated statement of comprehensive income



26 weeks ended 27th Oct., 2018


26 weeks ended 28th Oct., 2017



unaudited


unaudited



£000


£000

Profit for the period attributable to equity holders of the parent


2,507


1,284











Exchange differences on retranslation of foreign operations


(76)


215











Other comprehensive income-items that will be reclassified subsequently to profit or loss


(76)


215











Remeasurement of defined benefit pension scheme liability


14


1,268

Deferred taxation on remeasurement of defined benefit pension scheme


(2)


(216)











Other comprehensive income-items that will not be reclassified subsequent to profit or loss


12


1,052











Total comprehensive income for the period attributable to equity holders of the parent

2,443


2,551








 

 

 

 

Interim condensed consolidated statement of financial position

 

 



27th Oct., 2018


28th April, 2018




unaudited


audited

ASSETS



£000


£000

Non-current assets






Intangible assets



4,718


4,893

Property, plant and equipment



20,779


20,766

Deferred income tax asset



1,052


1,092
















26,549


26,751



















Current assets






Inventories



15,643


11,666

Trade and other receivables



13,106


14,617

Income tax receivable



44


114

Prepayments



2,329


1,127

Cash and cash equivalents



16,646


15,866
















47,768


43,390













TOTAL ASSETS



74,317


70,141



















EQUITY AND LIABILITIES






Equity 






Share capital



1,840


1,840

Capital redemption reserve



901


901

Other reserve



2,815


2,815

Revaluation reserve



6,055


6,055

Special reserve



1,629


1,629

Currency translation reserve



445


521

Treasury shares



(3,059)


(3,059)

Retained earnings



24,000


22,698













Total Equity



34,626


33,400



















Non-current liabilities






Defined benefit pension liability



6,189


6,421

Deferred tax liabilities



1,595


1,625
















7,784


8,046



















Current liabilities






Trade and other payables



30,717


28,052

Current tax liabilities



1,190


643
















31,907


28,695













TOTAL EQUITY AND LIABILITIES



74,317


70,141



















 



 

Interim consolidated statement of  changes in equity
























Share capital


Capital redemption reserve


Other reserve


Revaluation reserve


Special reserve


Currency translation reserve


Treasury shares


Retained earnings


Total unaudited




£000


£000


£000


£000


£000


£000


£000


£000


£000





















At 28th April, 2018


1,840


901


2,815


6,055


1,629


521


(3,059)


22,698


33,400

IFRS 15 opening adjustment









(144)


(144)

Profit for the period









2,507


2,507

Other comprehensive income/(loss)






(76)



12


(64)









































1,840


901


2,815


6,055


1,629


445


(3,059)


25,073


35,699

Dividend paid









(1,073)


(1,073)









































At 27th October, 2018


1,840


901


2,815


6,055


1,629


445


(3,059)


24,000


34,626
































































Share capital


Capital redemption reserve


Other reserve


Revaluation reserve


Special reserve


Currency translation reserve


Treasury shares


Retained earnings


Total unaudited




£000


£000


£000


£000


£000


£000


£000


£000


£000





















At 29th April, 2017


1,840


901


2,815


4,257


1,629


696


(3,059)


19,962


29,041

Profit for the period









1,284


1,284

Other comprehensive income






215



1,052


1,267










































1,840


901


2,815


4,257


1,629


911


(3,059)


22,298


31,592

Dividend paid









(1,073)


(1,073)









































At 28th October, 2017


1,840


901


2,815


4,257


1,629


911


(3,059)


21,225


30,519









































 



 

Interim consolidated cash flow statement







26 weeks ended 27th Oct., 2018


26 weeks ended 28th Oct., 2017



unaudited


unaudited



£000


£000






Profit before taxation


3,186


1,640

Adjustments to reconcile profit before taxation to net cash flows from operating activities





IFRS 15 opening adjustment


(144)


  - 

Depreciation charge


653


628

Amortisation charge


195


254

Profit on disposal of fixed assets


(46)


(75)

Finance costs


80


134

Foreign exchange movements


(263)


79

Increase in inventories


(3,977)


(1,548)

Decrease in receivables


1,511


963

Increase in prepayments


(1,202)


(15)

Increase in payables


1,756


770

Increase/(decrease) in progress payments


909


(1,359)

Pension fund deficit reduction payments


(300)


(159)











Cash flows from operations


2,358


1,312






Net interest received/(paid)


2


(43)

Taxes paid


(47)


(157)











Net cash flow from operating activities


2,313


1,112






Investing activities





Purchase of property, plant and equipment


(593)


(829)

Sale of property, plant and equipment


133


115

Net cash flows used in investing activities


(460)


(714)






Financing activities





Dividend paid


(1,073)


(1,073)

Net cash flows used in financing activities


(1,073)


(1,073)











Movement in cash and cash equivalents


780


(675)

Opening cash and cash equivalents


15,866


15,210











Closing cash and cash equivalents


16,646


14,535











 



 

Notes to the interim consolidated financial statements



1

Corporate information








MS INTERNATIONAL plc is a public limited company incorporated in England and Wales.  The Company's ordinary shares are traded on the AIM market of the London Stock Exchange.  The principal activities of the Company and its subsidiaries ("the Group") are the design, manufacture, construction and servicing of a range of engineering products and structures. These activities are grouped into the following divisions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                     








    Defence - design, manufacture and service of defence equipment.










Forging - manufacture of forgings.












Petrol Station Superstructures - design, manufacture, construction, branding, maintenance and restyling of petrol station                     superstructures.








Petrol Station Branding - design and installation of the complete appearance of petrol stations.









The interim condensed consolidated financial statements of the Group for the twenty six weeks ended 27th October, 2018 were authorised for issue in accordance with a resolution of the Directors on 3rd December, 2018.

 



2

Basis of preparation and accounting policies




The annual consolidated financial statements of the Group are prepared in accordance with IFRS as adopted by the European Union. The consolidated condensed set of financial statements included in this half-yearly financial report which has not been audited has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.  The accounting policies are consistent with those applied in the Group Annual financial statements for the 52 weeks ended 28th April, 2018, except as stated below following the adoption of IFRS15 and IFRS9.




The interim financial information has been reviewed by the Group's auditors, Grant Thornton UK LLP, their report is included on page 4. These interim financial statements do not constitute statutory financial statements within the meaning of section 435 of the Companies Act 2006. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 28th April, 2018.




IFRS 15 Revenue from contracts with customers has been adopted and applied retrospectively without restatement, with the cumulative effect of initial application recognised as an adjustment to the opening balance of retained earnings at 28th April, 2018. Previously revenue on contracts within the Petrol Station Structure Division was recognised based on the stage of completion of site activity. On applying IFRS15 revenue on these contracts will be recognised at the completion of the contract. The effect of this change was a reduction of retained earnings of £144,000 as at the 28th April, 2018, being the net of a reduction in revenue of £488,000 and an increase in work in progress of £344,000, with a balance sheet effect of increasing inventories by £344,000, reducing receivables by £22,000 and payables by £466,000.  If IFRS15 had been applied to the period ended 28th October, 2017 then revenue would have been reduced by £538,000, profit before taxation by £168,000, inventories increased by £370,000, accounts receivable reduced by £80,000 and payables reduced by £457,000.








IFRS9 Financial instruments has been adopted. This adoption has no effect on revenue, profits or balance sheet items. There are no other accounting standards or interpretations that have become effective in the current reporting period which have had a material effect on the net assets, results and disclosures of the Group.








The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.








As at the reporting date, the assets and liabilities of the overseas subsidiaries are translated into the presentation currency of the Group at the rate of exchange ruling at the balance sheet date and their income statements are translated at the weighted average exchange rates for the year.  The exchange differences arising on the retranslation are taken directly to a separate component of equity. 








The figures for the year ended 28th April, 2018 do not constitute the Group's statutory accounts for the period but have been extracted from the statutory accounts. The auditor's report on those accounts, which have been filed with the Registrar of Companies, was unqualified and did not contain any statement under section 498(2) or (3) of the Companies Act 2006.

 

3

Principal risks and uncertainties






































The principal risk and uncertainties facing the Group relate to levels of customer demand for the Group's products and services.  Customer demand is driven mainly by general economic conditions but also by pricing, product quality and delivery performance of MS INTERNATIONAL plc and in comparison with our competitors.  Sterling exchange rates against other currencies can influence pricing.
























Additionally the prosperity of the Group is underpinned by the intellectual property rights of the products which have been developed in house and funded by the Group at considerable cost. Challenges to the ownership of our intellectual property rights have increasingly become a risk.  Such  threats are monitored and vigorously confronted and defended as they arise.
























The Group has considerable financial resources together with long term contracts with a number of customers.  As a consequence, the Directors believe that the Group is well placed to manage its business risk successfully despite the current uncertain economic outlook.
























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.  Accordingly, they continue to adopt the going concern basis in preparing these interim financial statements.























4

Segment information







































(a)

Primary reporting format - divisional segments



































The following table presents revenue and profit information about the Group's divisions for the periods ended 27th October, 2018 and 28th October, 2017.

 




Defence


       Forgings


  Petrol Station


 Petrol Station


   Total






Superstructures


Branding





2018


2017


2018


2017


2018


2017


2018


2017


2018


2017




















unaudited


unaudited




£000


£000


£000


£000


£000


£000


£000


£000


£000


£000
























Revenue






















From external customers


9,010


9,133


7,764


7,029


7,677


6,500


13,291


11,967


37,742


34,629


From other segments






292


146


120


103


412


249














































Segment revenue


9,010


9,133


7,764


7,029


7,969


6,646


13,411


12,070


38,154


34,878














































Segment result


24


289


(232)


(512)


1,179


109


2,295


1,888


3,266


1,774


Net finance expense


















(80)


(134)














































Profit before taxation


















3,186


1,640


Taxation


















(679)


(356)














































Profit for the period


















2,507


1,284














































Capital expenditure


10



332


479


164


59


53


129






Depreciation


38


79


250


240


154


161


92


80








































































The following table presents segment assets and liabilities of the Group's divisions for the periods ended 27th October, 2018 and 28th October, 2017.
























Segmental assets


28,248


28,366


5,327


4,374


11,059


10,052


11,066


7,692


55,700


50,484


Unallocated assets


















18,617


12,930














































Total assets


















74,317


63,414














































Segmental liabilities


20,093


16,476


2,382


1,658


4,510


2,849


4,115


3,142


31,100


24,125


Unallocated liabilities


















8,591


8,770














































Total liabilities


















39,691


32,895













































 
























Unallocated assets includes certain fixed assets, intangible assets, current assets and deferred tax assets.  Unallocated liabilities includes the defined benefit pension scheme liability and certain current liabilities which primarily relate to operations of Group functions.













































5

Release of impairment provision






















At 28th April, 2018, an impairment provision of £615,000, relating to the uncertainty of the recovery of certain indirect taxes due to the Petrol Station Branding division, was made. Following the resolution, with the relevant authorities, of the uncertainty the impairment provision of £615,000 was released at 27th October, 2018.

 

6

Tax expense













The major components of tax expense in the consolidated income statement are:









26 weeks ended 27th Oct., 2018


26 weeks ended 28th Oct., 2017





unaudited


unaudited





£000


£000









Current  tax charge


674


481
















Current tax


674


481
















Relating to origination and reversal of temporary differences


5


(125)
















Deferred tax


5


(125)
















Total income expense reported in the consolidated income statement


679


356















The UK corporation tax rate will remain at 19% until it reduces to 17% from April 2020. At 27th October, 2018 the rate reductions to 17% had been enacted.  Deferred tax at 28th October, 2018 has therefore been provided at 17% or a blended rate depending upon when the underlying temporary timing differences are expected to unwind. Deferred tax in relation to intangibles recognised on the acquisition of Petrol Sign bv has been provided at 25% being the main corporation tax rate in The Netherlands.

 

 

7

Earnings per share













The calculation of basic earnings per share is based on:













(a)

Profit for the period attributable to equity holders of the parent of £2,507,000 (2017 - £1,284,000);











(b)

16,504,691 (2017 - 16,504,691) Ordinary shares, being the number of Ordinary shares in issue.











This represents 18,396,073 (2017 - 18,396,073) being the number of Ordinary shares in issue less 245,048 (2017 - 245,048) being the number of shares held within the ESOT and less 1,646,334 (2017 - 1,646,334) being the number of shares purchased by the Company.

 



 

8

Dividends paid and proposed









26 weeks ended 27th Oct., 2018


26 weeks ended 28th Oct., 2017





unaudited


unaudited





£000


£000


Declared and paid during the 26 week period






Dividend on ordinary shares






Final dividend for 2018 - 6.50p (2017 - 6.50p)


1,073


1,073
















Proposed for approval






Interim dividend for 2019 - 1.75p (2018 - 1.75p)


289


289
















Dividend warrants will be posted on 3rd January, 2019 to those members registered on the books of the Company on 14th December, 2018.








 

9

Property, plant and equipment










Freehold


Plant and






property


equipment


Total




£000


£000


£000


At 28th April, 2018


17,534


15,536


33,070


Additions


  - 


593


593


Disposals


  - 


(670)


(670)


Exchange differences


105


78


183


















At 27th October, 2018


17,639


15,537


33,176


















At 28th April, 2018


354


11,950


12,304


Depreciation charge for the period


156


497


653


Disposals


  - 


(583)


(583)


Exchange differences


  - 


23


23


















At 27th October, 2018


510


11,887


12,397


















Net book value at 27th October, 2018


17,129


3,650


20,779


























At 29th April, 2017


16,010


15,751


31,761


Additions


  - 


829


829


Disposals


  - 


(677)


(677)


Exchange differences


28


60


88


















At 28th October, 2017


16,038


15,963


32,001


















At 29th April, 2017


557


12,105


12,662


Depreciation charge for the period


94


535


629


Disposals


  - 


(637)


(637)


Exchange differences


9


36


45


















At 28th October, 2017


660


12,039


12,699


















Net book value at 28th October, 2017


15,378


3,924


19,302


















Analysis of cost or valuation








At professional valuation 2018


12,300


  - 


12,300


At cost


5,339


15,537


20,876


















At 27th October, 2018


17,639


15,537


33,176


















Analysis of cost or valuation








At professional valuation 2014


12,221


  - 


12,221


At cost


3,817


15,963


19,780


















At 28th October, 2017


16,038


15,963


32,001









 


On 11th November, 2017, 26th July, 2017 and 28th March, 2018 the Group's land and buildings, which consist of manufacturing and office facilities in the UK, Poland and USA were valued by Dove Haigh Phillips (UK), KonSolid-Nieruchomosci (Poland) and Real Estate & Appraisal Services inc (USA).  Management determined that these constitute one class of asset under IFRS 13 (designated as level 3 fair value assets), based on the nature, characteristics and risks of the properties.










The UK properties were valued on the basis of an existing use value in accordance with the Appraisal and Valuation Standards (5th Edition) published by the Royal Institution of Chartered Surveyors.  The Poland property was valued based on the income approach, converting anticipated future benefits in the form of rental income into present value. The USA property was valued on an income and market value basis.  For all properties, there is no difference between current use and highest and best use.










The valuation of the UK properties has been processed in the financial statements.  The Poland property and the USA property valuations were sufficiently close to their carrying value such that the valuations were not processed.

 







10

Cash and cash equivalents














For the purpose of the interim consolidated cash flow statement, cash and cash equivalents are comprised of the following:






27th Oct., 2018


28th April, 2018






unaudited


audited






£000


£000


Cash at bank and in hand


11,273


7,504


Short term deposits


5,373


8,362






















16,646


15,866

















 

11

Pension liability














The Company operates an employee pension scheme called the MS INTERNATIONAL plc Retirement and Death Benefits Scheme ("the Scheme").   IAS19 requires disclosure of certain information about the Scheme as follows:










-


Until 5th April, 1997, the Scheme provided defined benefits and these liabilities remain in respect of service prior to 6th April, 1997.  From 6th April, 1997  until 31st May, 2007 the Scheme provided future service benefits on a defined contribution basis.










-


The last formal valuation of the Scheme was performed at 5th April, 2017 by a professionally qualified actuary.










-


From April, 2016 the Company directly pays the  expenses of the Scheme.  With effect from April, 2018 the deficit reduction payments paid into the Scheme by the Company increased to £600,000 per annum. The deficit reduction contributions are paid on a quarterly basis with the first paid on 3rd April, 2018 and the last one due for payment on or before 5th January, 2027.










-


From 1st June, 2007 the Company has operated a defined contribution scheme for its UK employees which is administered by a UK pension provider.  Member contributions are paid in line with this scheme's documentation over the accounting period and the Company has no further obligations once the contributions have been made.










-


During the period, the Scheme liability has reduced by £232,000. A re-measurement gain of £14,000 (2017 -  £1,268,000) has been recognised through other comprehensive income and comprises  of  a £604,000  remeasurement  loss compared to the interest income on the plan assets  on plan assets  and a £618,000 actuarial gain due to changes in financial assumptions. The actuarial gain comprises of a £453,000 gain which primarily  reflected  the higher discount rate in the period which decreased the value placed on the Scheme's liabilities at the period end. In addition there was a £165,000 resulting from changes in the mortality assumption. The interest cost on the net defined benefit liability of £82,000 has been recognised through the income statement. The liability is reduced by pension fund deficit payments in the period of £300,000 (2017 - £159,000).










-


On 26th October, 2018 a High Court judgement ruled that guaranteed minimum pensions (GMP's) for pensionable service between 1990 and 1997  were required to be equalised for members of contracted out pension schemes. 












However, the judgement did not set out a methodology for how this equalisation process should occur across all pension schemes.   The Trustee Directors and the Company are consulting with the Scheme's advisors on how best to implement the equalisation process.












Whilst broad industry wide estimates have suggested potential increases in pension schemes' liabilities of between 0% - 3%, any additional liability will be primarily dependent upon the Scheme membership profile and methodology adopted for calculating equalised GMP's.












Given the uncertainty  relating to the calculation methodology to be adopted and the short period of time since the judgement it has not been possible to accurately quantify any increase in the Scheme's liabilities for inclusion in these financial statements.












Any increase in the Scheme's liabilities arising from this judgement will be included in the annual financial statements for the year ending on 27th April, 2019.  









12

Commitments and contingencies














The Company is contingently liable in respect of guarantees, indemnities and performance bonds given in the ordinary course of business amounting to £3,197,739 at 27th October, 2018 (2017 - £2,410,677).


In the opinion of the Directors, no material loss will arise in connection with the above matters.


The Group and certain of its subsidiary undertakings are parties to legal actions and claims which have arisen in the normal course of business.   The results of actions and claims cannot be forecast with certainty, but the directors believe that they will be concluded without any material effect on the net assets of the Group.

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR BLBDDRUGBGIX
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-year Report - RNS