Editor's Pick: The week ahead....
(MLIN.L) Molins PLC Buy/Sell
Add to portfolio Set Alert Level 2 Desktop Trader
Summary
|
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
| Date/Time | Headline | Source |
|---|---|---|
| 23-10-09 | RNS |
|
This news article is displayed preformatted as it may contain results tables
RNS Number : 2779B
Molins PLC
23 October 2009
23 October 2009
MOLINS PLC
Interim Management Statement
This statement is issued in accordance with the requirements of the Disclosure and Transparency Rules and relates to the period from 1 July 2009.
Overall the Group continues to trade in line with the board's expectations at the beginning of the year. As commented on 28 August 2009, the date the Group announced its results for the six months ended 30 June 2009, performance in both the Tobacco Machinery and Scientific Services divisions was ahead of the board's expectations, and trading since then has continued to progress satisfactorily. Trading conditions in the Packaging Machinery division remain challenging, with order intake not showing any immediate signs of improvement.
The financial position of the Group is broadly comparable with that at 30 June 2009. The balance sheet includes the valuation of the UK defined benefit pension scheme which by its nature is prone to potentially significant changes driven by factors outside the control of the Company. A formal actuarial valuation of the scheme as at 30 June 2009 is being carried out. This valuation, which will take a number of months to complete, will provide the framework for determining the level of funding that the Company will be committed to paying to the scheme to recover any deficit that may exist.
Enquiries: Molins PLC
Tel: 01908 246870
Dick Hunter, Chief Executive
David Cowen, Group Finance Director
Issued by: Citigate Dewe Rogerson
Tel: 020 7638 9571
Angharad Couch
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSPUGBPUUPBUMW
More |
||
| 28-08-09 | RNS |
|
This news article is displayed preformatted as it may contain results tables
RNS Number : 1547Y
Molins PLC
28 August 2009
28 August 2009 FOR IMMEDIATE RELEASE
2009 HALF-YEAR ANNOUNCEMENT
Molins PLC, the international specialist engineering company, announces its results for the six months ended
30 June 2009.
6 months 12 months
to 30 June to 31 Dec
6 months 2008 2008
to 30 June (restated)¿ (restated)¿
2009
Sales £42.2m £45.2m £91.5m
Underlying operating profit* £1.9m £0.8m £4.4m
Profit before tax - continuing £0.6m £2.1m £8.8m
operations £0.1m £1.3m £6.7m
Profit for the period
6.0p 1.5p 16.1p
Underlying earnings per share* 0.6p 6.9p 35.2p
Basic earnings per share 2.5p 2.5p 5.0p
Dividends per share
Cash generated from/(used in)
operations before £3.6m £(3.4)m -
reorganisation - continuing £2.6m £(14.4)m £(0.4)m
operations
Net funds/(debt)
¿ Restated to reflect changes in accounting for tax in respect of the UK pension scheme
* Continuing operations before net pension cost of £1.0m (30 June 2008: £1.7m credit; 31 December 2008: £3.4m credit) and exceptional charge of £0.2m (30 June 2008: £nil; 31 December 2008: £1.7m profit)
* Increase in underlying earnings
* Strong cash flow resulting in net funds of £2.6m
* Maintained interim dividend of 2.5p
Dick Hunter, Chief Executive, commented:
"Both the Tobacco Machinery and Scientific Services divisions have performed ahead of the Board's expectations in the period, although performance in the Packaging Machinery division was lower than expected. The Group has delivered an improved underlying trading result in the first half compared with last year, with the expectation that performance in the full year will be more evenly split between the two halves than has been the pattern over the last few years. Overall the Board's expectations remain in line with those at the beginning of the year."
Enquiries: Molins PLC Tel: 020 7638 9571
Dick Hunter, Chief Executive;
David Cowen, Group Finance Director
Issued by: Citigate Dewe Rogerson Tel: 020 7638 9571
Angharad Couch
Interim Management Report
Group structure and strategy
The Group operates through a number of businesses focused on providing high performance equipment and services for the production, packaging and analysis of consumer products. Molins Tobacco Machinery designs, manufactures, markets and services specialist machinery for the tobacco industry from its bases in the UK, US, Brazil, Singapore and Czech Republic. The Packaging Machinery division, which supplies engineering services and capital equipment, operates through four businesses based in the UK, the Netherlands and Canada. The Scientific Services division, with main facilities in the UK and US, comprises two businesses, one of which supplies process and quality control instruments for the tobacco industry and the other being an independent tobacco and smoke constituent analytical laboratory.
The Group remains focused on the organic development of these businesses, through targeted product development, excellence in customer service and ongoing operational efficiency improvements.
Operating results
Group sales in the six months to 30 June 2009 were £42.2m (2008: £45.2m). The Group's net funds position improved in the period by £3.0m. Underlying operating profit (continuing operations before net pension cost/credit and exceptional items) was £1.9m (2008: £0.8m). The Group incurred a net pension cost in the period of £1.0m (2008: £1.7m credit), as indicated at the beginning of the year, and also incurred net costs of £0.2m in respect of exceptional items and a loss from discontinued operations of £0.2m. Profit for the period was £0.1m (2008: £1.3m). Basic earnings per share amounted to 0.6p (2008: 6.9p) and underlying earnings per share (continuing operations before net pension cost/credit and exceptional items) amounted to 6.0p (2008: 1.5p).
Tobacco Machinery
Sales in the period were £18.7m (2008: £17.2m). At constant exchange rates the increase in sales was £0.6m, with an increase in original and rebuild equipment sales more than compensating for a small and expected reduction in spare parts sales and other aftermarket services. Underlying operating profit in the period, before exceptional items, was £1.7m (2008: £0.4m). Order intake for new machines has been particularly strong in the period, with an order received for ten of the division's new Octave cigarette making machines, following successful completion of its full production trial. Delivery of the machines is scheduled over 2010 and 2011. Order intake at Molins do Brasil was lower than expected as a prospective large order for repair and overhaul work was delayed, and has yet to be received. The other businesses within the division performed well in the period, and in particular the factory in the Czech Republic where the benefit of a strong loading and improved operating efficiency resulted in lower unit costs. Divisional headcount has been reduced by 7% since the start of the year.
Packaging Machinery
Sales in the period were £13.3m (2008: £18.3m), reflecting reductions at ITCM and Langen Packaging in Canada, marginally offset by an increase in sales at Langen Packaging in the Netherlands. This reduction reflects the lower order book at the start of the year compared with twelve months earlier. The economic conditions continue to be challenging and are adversely affecting customers' requirements for capital goods and their speed of decision making, reflected in the order intake in the period which was at similar levels to last year. The businesses have taken steps to reduce operating costs with a reduction in headcount of 15% since the start of the year. Further actions are planned to reduce costs.
The division returned an underlying operating loss, before exceptional items, in the period of £1.2m (2008: £0.2m).
Scientific Services
Sales in the period were £10.2m (2008: £9.7m), which at constant exchange rates represents a decline of 7%. Operating profit was £1.4m (2008: £0.6m).
Order intake at Cerulean continued to be strong, with good levels of activity across most geographic markets, in particular in China. Profit margins in Cerulean improved, with a favourable product mix and continued work with the supply chain helping to improve performance. Performance at Arista Laboratories was at similar levels to last year. In June 2009 US legislation was passed placing the regulation of tobacco products with the US Food & Drug Administration (FDA). The full consequences of this, in terms of the required testing regimes, will become fully understood as the FDA develops its regulatory system. However, it is expected that this change in regulation will lead to increased business opportunities for Arista in the medium term.
Exceptional items
The Group incurred a net exceptional charge of £0.2m in the period. Reorganisation costs in the period of £0.5m were incurred, reflecting redundancies made within the Tobacco Machinery and Packaging Machinery divisions. In respect of property, the Group generated a net profit of £0.3m, from the profitable sale of a property in the Netherlands, partly offset by costs associated with the preparation for the move from the Saunderton site.
Discontinued operations
In the period the Group recorded a net charge of £0.2m, reflecting a dilapidations claim on its former site in Nottingham and an ongoing product performance claim for which Molins retains responsibility, relating to a former Group business.
Cash
The generation of net cash flow in the period of £2.5m, together with favourable exchange rate movements of £0.5m, resulted in net funds at 30 June 2009 of £2.6m (30 June 2008: £14.4m net debt; 31 December 2008: £0.4m net debt). Net cash generated from operating activities was £2.8m, which benefited from a decrease in working capital of £0.8m, and is net of payments to the pension fund of £0.4m and reorganisation costs paid of £0.5m. Capital and product development expenditure was £1.0m and proceeds from the sale of property were £1.5m. Dividends were paid of £0.5m.
Property
Following the sale of the Company's former site at Saunderton in December 2008, notice was served to the Company in June 2009 for the tobacco machinery business that still operates from there to vacate the site within twelve months in accordance with the sale agreement. This resulted in a payment of £0.4m to the Company in June as compensation for the loss of the agreed rent-free occupation of the site until December 2011. A project is underway to find suitable alternative premises. The Company also received a final payment of £0.1m related to the sale of the site.
Following the move of premises by Langen Packaging in the Netherlands towards the end of 2008, its freehold site was sold in the period for a sum of £1.0m.
Pension valuations
The Group operates defined benefit schemes in the UK and US, and has adopted IAS 19 (revised) Employee benefits as its basis of accounting for these schemes. In the first six months of 2009, the net pension cost, excluding curtailment costs of £0.1m, arising from the defined benefit schemes was £1.0m, (2008: £1.7m credit). This cost is largely determined by conditions existing at 1 January 2009, and reflects the significant movements in the financial markets during 2008. The IAS 19 valuation of the UK scheme at 30 June 2009 shows a further deterioration, moving from a surplus of £2.7m before tax at 31 December 2008, to a deficit of £24.3m at the half-year. This deterioration has arisen largely from an actuarial loss in the period, with a decrease in the value of the scheme's assets to £277.2m (31 December 2008: £283.8m), and more significantly an increase in the value of the scheme's liabilities to £301.5m (31 December 2008: £281.1m), reflecting the impact of changes in actuarial assumptions. The net valuation of the US pension funds at 30 June 2009, with total assets of £12.0m, showed a deficit of £3.1m (31 December 2008: £3.8m).
The UK Fund is subject to a formal actuarial valuation as at 30 June 2009. This valuation, which will take a number of months to complete, will determine the level of funding that the Company will be committed to paying to the Fund to recover any deficit that may exist. Currently the Company makes payments to the Fund to cover the cost of on-going benefits being earned and to cover extra funding strains that may arise from any redundancies that are made.
Related party transactions
There has been no material change in the nature of related party transactions from those described in note 31 of the 2008 Annual Report and Accounts and these are also referred to in note 13 of this Half-Yearly Financial Report.
Risks
Molins is subject to a number of risks which could have a serious impact on the performance of the business. The Board regularly considers the principal risks that the Group faces and how to mitigate their potential impact. The key risks to which the business is exposed have not changed significantly over the past six months and are not expected to do so over the remaining six months of the financial year. Further information on the principal risks and uncertainties faced by the Group is included on pages 6 and 7 of the Group's 2008 Annual Report and Accounts.
Cautionary statement
This Interim management report (IMR) has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other reason. The IMR contains certain 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 and such information should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information. This IMR has been prepared for the Group as a whole and therefore emphasises those matters which are significant to Molins PLC and its subsidiary undertakings when viewed as a whole.
Dividend
The Board has declared an interim dividend in respect of 2009 of 2.5p per ordinary share (2008: 2.5p), which will be paid on 8 October 2009 to shareholders on the register on 11 September 2009. Dividends paid to shareholders in the six months to 30 June 2009 were 2.5p per ordinary share (2008: 5p).
Outlook
Both the Tobacco Machinery and Scientific Services divisions have performed ahead of the Board's expectations in the period, although performance in the Packaging Machinery division was lower than expected. The Group has delivered an improved underlying trading result in the first half compared with last year, with the expectation that performance in the full year will be more evenly split between the two halves than has been the pattern over the last few years. As stated at the time of the announcement of the 2008 full year results, given the general economic conditions, the effect of which is being particularly felt in the Packaging Machinery division, we expect Group sales to reduce in the current year, with cost base reductions and efficiency improvements mitigating the impact of the reduced sales. Overall the Board's expectations remain in line with those at the beginning of the year.
Responsibility Statement of the Directors in respect of the Half-Yearly Financial Report
We confirm that to the best of our knowledge:
* the condensed set of financial statements has been prepared in accordance with IAS 34 Interim financial
reporting as adopted by the EU; and
* the Interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the financial
year and their impact on the condensed set of financial statements; and a
description of the principal risks and uncertainties for the remaining six months
of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the Group during that period; and any changes in the related party
transactions described in the last annual report that could do so.
By order of the Board
Dick Hunter Chief Executive
David Cowen Group Finance Director
28 August 2009
Condensed Consolidated Income Statement
6 months to 30 June 2009 12 months to 31 December 2008
6 months Before
Before to 30 June exceptional Exceptional
exceptional 2008 items items
items Exceptional (restated) (restated) (restated) Total
£m items £m £m £m (restated)
£m Total (note 6) £m
(note 6) £m
Notes
Continuing operations
Revenue 5 42.2 - 42.2 45.2 91.5 - 91.5
Cost of sales (30.7) (0.2) (30.9) (32.7) (65.3) (0.4) (65.7)
Gross profit 11.5 (0.2) 11.3 12.5 26.2 (0.4) 25.8
Other operating income - 0.4 0.4 0.1 0.2 3.1 3.3
Distribution expenses (3.6) - (3.6) (2.8) (5.7) (0.1) (5.8)
Administrative expenses (6.7) (0.2) (6.9) (7.1) (12.5) (0.4) (12.9)
Other operating
expenses (0.3) (0.2) (0.5) (0.2) (0.4) (0.5) (0.9)
Operating profit 5, 7 0.9 (0.2) 0.7 2.5 7.8 1.7 9.5
Financial income - - - 0.1 0.1 - 0.1
Financial expenses (0.1) - (0.1) (0.5) (0.8) - (0.8)
Net financing costs 5 (0.1) - (0.1) (0.4) (0.7) - (0.7)
Profit before tax 5 0.8 (0.2) 0.6 2.1 7.1 1.7 8.8
Taxation 8 (0.3) - (0.3) (0.8) (1.9) (0.2) (2.1)
Profit from continuing
operations 0.5 (0.2) 0.3 1.3 5.2 1.5 6.7
Discontinued operations
Loss from discontinued
operations 9 (0.2) - (0.2) - - - -
Profit for the period 0.3 (0.2) 0.1 1.3 5.2 1.5 6.7
Basic earnings per
ordinary share
10 0.6p 6.9p 35.2p
Diluted earnings per 0.6p 6.9p 35.2p
ordinary share 10
Continuing operations
Basic earnings per
ordinary share
10 1.7p 6.9p 35.2p
Diluted earnings per
ordinary share 10 1.7p 6.9p 35.2p
Condensed Consolidated Statement of Comprehensive Income
6 months 6 months 12 months
to 30 June to 30 June to 31 Dec
2009 2008 2008
£m (restated) (restated)
£m £m
Profit for the period 0.1 1.3 6.7
Other comprehensive
income/(expense)
Currency translation movements (1.1) 1.5 3.3
arising on foreign currency
net investments
Effective portion of changes 0.3 - -
in fair value of cash flow
hedges
Net changes in fair value of (0.1) - -
cash flow hedges transferred
to profit or loss
Actuarial losses (26.1) (22.9) (32.1)
Tax on actuarial losses 7.5 8.1 11.4
Other comprehensive (19.5) (13.3) (17.4)
income/(expense) for the
period
Total comprehensive (19.4) (12.0) (10.7)
income/(expense) for the
period
Condensed Consolidated Statement of Changes in Equity
Capital
Share Share Translation redemption Hedging Retained Total
capital premium reserve reserve reserve earnings equity
£m £m £m £m £m £m £m
6 months to 30 June 2009
Balance at 1 January 2009 5.0 26.0 4.4 3.9 - 0.9 40.2
Profit for the period - - - - - 0.1 0.1
Other comprehensive
income/(expense) for the
period - - (1.1) - 0.2 (18.6) (19.5)
Total comprehensive
income/(expense) for the - - (1.1) - 0.2 (18.5) (19.4)
period
Dividends to shareholders - - - - - (0.5) (0.5)
Equity-settled share-based
transactions (LTIP)
- - - - - (0.2) (0.2)
Total transactions with
owners, - - - - - (0.7) (0.7)
recorded directly in equity
Balance at 30 June 2009 5.0 26.0 3.3 3.9 0.2 (18.3) 20.1
6 months to 30 June 2008
Balance at 1 January 2008
5.0 26.0 1.1 3.9 - 16.3 52.3
Profit for the period - - - - - 1.3 1.3
Other comprehensive
income/(expense) for the
period - - 1.5 - - (14.8) (13.3)
Total comprehensive
income/(expense) for the - - 1.5 - - (13.5) (12.0)
period
Dividends to shareholders - - - - - (1.0) (1.0)
Equity-settled share-based
transactions (LTIP)
- - - - - 0.2 0.2
Total transactions with
owners, - - - - - (0.8) (0.8)
recorded directly in equity
Balance at 30 June 2008 5.0 26.0 2.6 3.9 - 2.0 39.5
12 months to 31 December 2008
Balance at 1 January 2008
5.0 26.0 1.1 3.9 - 16.3 52.3
Profit for the period - - - - - 6.7 6.7
Other comprehensive
income/(expense) for the
period - - 3.3 - - (20.7) (17.4)
Total comprehensive
income/(expense) for the - - 3.3 - - (14.0) (10.7)
period
Dividends to shareholders - - - - - (1.5) (1.5)
Equity-settled share-based
transactions (LTIP)
- - - - - 0.1 0.1
Total transactions with
owners, - - - - - (1.4) (1.4)
recorded directly in equity
Balance at 31 December 2008 5.0 26.0 4.4 3.9 - 0.9 40.2
Condensed Consolidated Statement of Financial Position
30 June 31 Dec
30 June 2008 2008
2009 (restated) (restated)
£m £m £m
Notes
Non-current assets
Intangible assets 14.2 13.3 14.9
Property, plant and equipment 9.2 23.2 10.6
Other receivables 0.7 0.6 0.9
Employee benefits - 6.6 2.7
Deferred tax assets 8.3 0.8 2.1
7
32.4 44.5 31.2
Current assets
Inventories 16.6 15.8 17.1
Trade and other receivables 17.6 19.2 22.2
Current tax assets 0.2 0.4 0.6
Cash and cash equivalents 10.2 2.7 7.2
44.6 38.1 47.1
Current liabilities
Bank overdrafts - (0.2) (0.3)
Trade and other payables (18.5) (20.4) (22.4)
Current tax liabilities (0.8) (0.5) (0.8)
Provisions (2.5) (1.6) (2.1)
(21.8) (22.7) (25.6)
Net current assets 22.8 15.4 21.5
Total assets less current 55.2 59.9 52.7
liabilities
Non-current liabilities
Interest-bearing loans and
borrowings (7.6) (16.9) (7.3)
Trade and other payables (0.1) - -
Employee benefits (27.4) (0.5) (3.8)
Deferred tax liabilities - (3.0) (1.4)
7
(35.1) (20.4) (12.5)
Net assets 5 20.1 39.5 40.2
Equity
Issued capital
Share premium 5.0 5.0 5.0
Reserves 26.0 26.0 26.0
Retained earnings 7.4 6.5 8.3
(18.3) 2.0 0.9
Total equity 20.1 39.5 40.2
Condensed Consolidated Statement of Cash Flows
6 months 6 months 12 months
to 30 June to 30 June to 31 Dec
2009 2008 2008
£m £m £m
Notes
Continuing operations
Operating activities
Operating profit
Exceptional items included in 0.7 2.5 9.5
operating profit 0.2 - (1.7)
Amortisation 0.6 0.7 1.2
Depreciation 0.9 1.0 2.0
Net pension cost/(credit) 1.0 (1.7) (3.4)
Other non-cash items (0.2) 0.2 0.1
Pension payments (0.4) (0.4) (0.9)
Working capital movements:
- decrease/(increase) in
inventories - 0.1 (0.5)
- decrease/(increase) in 3.8 (0.7) (1.5)
trade and other receivables (3.3) (5.1) (4.8)
- decrease in trade and 0.3 - -
other payables
- increase in provisions
Cash generated from/(used in)
operations before 3.6 (3.4) -
reorganisation
(0.5) (0.7) (1.5)
Reorganisation costs paid - - (1.0)
Pension payment following sale
of Saunderton site
Cash generated from/(used in) 3.1 (4.1) (2.5)
operations
(0.3) (0.4) (0.7)
Taxation paid
Net cash from operating 2.8 (4.5) (3.2)
activities
Investing activities
Interest received - 0.1 0.1
Net proceeds from sale of 0.5 - 15.7
Saunderton site
Proceeds from sale of other
property, plant and equipment 1.0 0.1 0.2
Acquisition of property, plant (0.5) (0.6) (1.2)
and equipment (0.5) (0.7) (1.5)
Development expenditure
Net cash from investing 0.5 (1.1) 13.3
activities
Financing activities
Interest paid (0.1) (0.5) (0.8)
Repayment of term loans (0.2) (0.6) (0.6)
Net increase/(decrease) 11 1.1 7.4 (3.1)
against revolving facilities (0.5) (1.0) (1.5)
Dividends paid
Net cash from financing 0.3 5.3 (6.0)
activities
Discontinued operations
Net cash from investing (0.2) (0.2) (0.4)
activities
Net cash from discontinued (0.2) (0.2) (0.4)
operations
12
Net increase/(decrease) in 3.4 (0.5) 3.7
cash and cash equivalents
Cash and cash equivalents at 1 6.9 2.7 2.7
January
Effect of exchange rate (0.1) 0.3 0.5
fluctuations on cash held
Cash and cash equivalents at 10.2 2.5 6.9
period end
Notes to the Condensed set of Financial Statements
1. General information
The half-year results for the current and comparative period are unaudited but have been reviewed by the auditors, KPMG Audit Plc, and their report is set out on page 16. The comparative figures for the financial year ended 31 December 2008 are not the Group's statutory accounts as defined in section 435 of the Companies Act 2006. The comparative figures for the financial year ended 31 December 2008 have been extracted from the Group's statutory accounts for that year (as restated). The Group's statutory accounts have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The Group's statutory accounts for the year ended 31 December 2008 are available from the Company's registered office at Rockingham Drive, Linford Wood East, Milton Keynes MK14 6LY or from the Group's website at www.molins.com.
Having made due enquiries the directors have a reasonable expectation that the Group has 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 condensed set of financial statements.
The condensed set of financial statements was approved by the Board of directors on 28 August 2009.
2. Accounting policies
The condensed set of financial statements for the six months ended 30 June 2009 has been prepared in accordance with IAS 34 Interim financial reporting as adopted by the EU and the Disclosure and Transparency Rules of the UK's Financial Services Authority. It does not include all of the information required for full annual financial statements, and should be read in conjunction with the financial statements of the Group for the year ended 31 December 2008.
Except as described below, the accounting policies, presentation and methods of computation applied by the Group in these condensed set of financial statements are the same as those applied in the Group's latest audited financial statements.
Changes in accounting policy
Presentation of financial statements
The Group has applied IAS 1 (revised) Presentation of financial statements, which became effective as of 1 January 2009. The Group has presented in the condensed consolidated statement of changes in equity all owner changes in equity, whereas all non-owner changes in equity are presented in the condensed consolidated statement of comprehensive income. Comparative information has also been represented so that it also is in conformity with the revised standard.
Determination and presentation of operating segments
The Group has applied IFRS 8 Operating segments, which became effective as of 1 January 2009. The Group has determined and presented operating segments based on the internal information that is provided to the Group's chief operating decision maker. Previously operating segments were determined and presented in accordance with IAS 14 Segment reporting. The identification of operating segments in accordance with IFRS 8 has not resulted in any change to the basis of segmentation that was reported in the financial statements of the Group for the year ended 31 December 2008.
Accounting for share-based transactions
The Group has applied the amendment to IFRS 2 Share-based payment, which became effective as of 1 January 2009. This amendment provides a definition of vesting conditions and specifies the accounting treatment for non-vesting conditions. The adoption of this amendment has not resulted in any material impact on the Group's condensed set of financial statements.
Prior year adjustment
The Group has formally adopted IFRIC 14 IAS 19 - The limit on a defined benefit asset, minimum funding requirements and their interaction for the period ended 30 June 2009. The interpretation of how to implement IFRIC 14 has changed, and consequently the results for the periods ended 30 June 2008 and 31 December 2008 have been restated and the Group's tax liability on the UK pension scheme surplus has been reclassified from employee benefits to deferred tax liabilities.
Previously the carrying value of the surplus of the UK pension scheme had been shown on the balance sheet net of withholding tax at 35% and the movement in withholding tax shown in the statement of recognised income and expense. Following the adoption of IFRIC 14 the Group is now accounting for deferred tax at 35% on the UK pension surplus with any movement in deferred tax shown in either the income statement or statement of comprehensive income in accordance with the requirements of IAS 12 Income taxes.
The effect of these changes has been to increase the taxation charge in the condensed consolidated income statement for the 6 months to 30 June 2008 by £1.0m (12 months to 31 December 2008: £1.9m). These amounts were previously recognised through the statement of recognised income and expense. A withholding tax liability of £2.3m at 30 June 2008 (31 December 2008: £0.9m) has been reclassified from employee benefits to deferred tax liabilities.
3. Estimates
The preparation of the condensed set of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
In preparing the condensed set of financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were of the same type as those that applied to the financial statements for the year ended 31 December 2008.
4. Financial risk management
The Group's financial risk management objectives and policies are consistent with those disclosed in the financial statements for the year ended 31 December 2008.
5. Operating segments
The Group has three operating segments which are the Group's three divisions. These divisions form the basis of the Group's management and internal reporting structure. Further details in respect of the Group structure and performance of the three divisions are set out in the Interim management report.
Revenue Operating profit/(loss)
6 months 6 months 12 months 6 months 6 months 12 months
to 30 June to 30 June to 31 Dec to 30 June to 30 June to 31 Dec
2009 2008 2008 2009 2008 2008
£m £m £m £m £m £m
Continuing operations
Tobacco Machinery 18.7 17.2 34.9 1.7 0.4 2.8
Packaging Machinery 13.3 18.3 37.0 (1.2) (0.2) 0.1
Scientific Services 10.2 9.7 19.6 1.4 0.6 1.5
42.2 45.2 91.5
Underlying operating profit 1.9 0.8 4.4
before net pension
(cost)/credit and exceptional
items
Net pension (cost)/credit (1.0) 1.7 3.4
(excluding curtailment costs)
Exceptional items (0.2) - 1.7
Operating profit 0.7 2.5 9.5
Net financing costs (0.1) (0.4) (0.7)
Profit before tax 0.6 2.1 8.8
Net financing costs include dividends paid on preference shares. The Company has in issue 900,000 6% fixed cumulative preference shares. The preference dividend is payable on 30 June and 31 December and amounted to £0.1m in the 12 months ended 31 December 2008.
6 months 6 months 12 months
to 30 June to 30 June to 31 Dec
2009 2008 2008
£m £m £m
Segment assets
Tobacco Machinery 22.8 34.6 26.8
Packaging Machinery 15.0 16.9 18.2
Scientific Services 20.5 20.6 20.7
Total segment assets 58.3 72.1 65.7
Unallocated assets 18.7 10.5 12.6
Total assets 77.0 82.6 78.3
Total liabilities (56.9) (43.1) (38.1)
Net assets 20.1 39.5 40.2
There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since 31 December 2008.
6. Exceptional items
The exceptional net charge of £0.2m in the 6 months ended 30 June 2009 includes costs of £0.5m related to reorganisations carried out during the period within the Tobacco Machinery division and the Packaging Machinery division, and costs of £0.1m in relation to the preparation for the relocation of the Tobacco Machinery business based at Saunderton. In addition, profit of £0.4m on the sale of a property in the Netherlands was realised in the period.
Net profit from exceptional items of £1.7m in 2008 includes profit of £3.1m on the sale of the Saunderton site. In addition, costs related to reorganisations carried out during 2008 within the Tobacco Machinery division and the Scientific Services division were £1.2m. Costs of £0.2m were also incurred in the Netherlands following the relocation of Langen Packaging to new premises.
7. Employee benefits
The Group accounts for pensions under IAS 19 (revised) Employee benefits. A formal valuation of the UK defined benefit pension scheme was carried out as at 30 June 2006 and its assumptions, modified as appropriate, have been applied in the condensed set of financial statements, updated to reflect actual experience and conditions at 30 June 2009. Operating profit includes a net pension cost for the 6 months to 30 June 2009 of £1.1m (6 months to 30 June 2008: £1.7m credit; 12 months to 31 December 2008: £2.9m credit), comprising a £1.0m net cost (6 months to 30 June 2008: £1.7m credit; 12 months to 31 December 2008: £3.4m credit) in respect of ongoing benefits, and curtailment costs of £0.1m (6 months to 30 June 2008: £nil; 12 months to 31 December 2008: £0.5m) arising from redundancies in the period.
Employee benefits include the net pension liability of the UK defined benefit pension scheme of £24.3m (30 June 2008: £6.6m surplus; 31 December 2008: £2.7m surplus) and the net pension liability of the US defined benefit pension schemes of £3.1m (30 June 2008: £0.5m; 31 December 2008: £3.8m), all figures before tax. The value of the assets held by the UK scheme at 30 June 2009 was £277.2m (31 December 2008: £283.8m) and the value of the liabilities increased to £301.5m (31 December 2008: £281.1m). The value of the assets held by the US schemes at 30 June 2009 was £12.0m (31 December 2008: £13.4m).
8. Taxation
The Group tax charge on continuing operations for the 6 months to 30 June 2009 amounted to £0.3m (6 months to 30 June 2008: £0.8m; 12 months to 31 December 2008: £2.1m) and is calculated as follows:
6 months 12 months
6 months to 30 June to 31 Dec
to 30 June 2008 2008
2009 (restated) (restated)
£m £m £m
Tax charge on underlying 0.7 0.1 0.6
profit
Tax (credit)/charge on Group
pension schemes (excluding (0.4) 0.7 1.3
curtailment costs) - - 0.2
Tax charge on exceptional
items
Taxation 0.3 0.8 2.1
The Group's consolidated effective tax rate in respect of underlying profit for the 6 months to 30 June 2009 is 36% (6 months to 30 June 2008: 36%; 12 months to 31 December 2008: 17%). The tax charge on underlying profit for the 12 months to 31 December 2008 includes a credit of £0.5m relating to capital losses utilised in the year for which no deferred tax asset had previously been recognised.
The comparative figures for the periods ended 30 June 2008 and 31 December 2008 have been restated to include deferred tax in relation to the surplus of the UK pension scheme (see note 2).
9. Discontinued operations
In the period the Group recorded a net charge of £0.2m in respect of a dilapidations claim on its former site in Nottingham and a claim that relates to a former Group business but for which Molins retains the responsibility.
10. Earnings per share
Basic earnings per ordinary share is based upon the profit for the period and on a weighted average of 18,968,324 shares in issue during the period (6 months to 30 June 2008: 18,968,324; 12 months to 31 December 2008: 18,968,324). The weighted average number of shares excludes shares held by the employee trust in respect of the long-term incentive plan.
Diluted earnings per ordinary share is based upon the profit for the period and on a diluted weighted average of 18,968,324 shares in issue during the period (6 months to 30 June 2008: 18,968,657; 12 months to 31 December 2008: 18,968,324). The diluted weighted average number of shares includes the diluting effect, if any, of own shares held by the employee trust and of share options.
Underlying earnings per ordinary share, which is calculated on profit from continuing operations before net pension cost/credit and exceptional items, amounted to 6.0p for the 6 months to 30 June 2009 (6 months to 30 June 2008: 1.5p; 12 months to 31 December 2008: 16.1p). The calculation of underlying earnings per ordinary share is based on underlying profit for the 6 months to 30 June 2009 of £1.1m (6 months to 30 June 2008: £0.3m; 12 months to 31 December 2008: £3.1m) and is calculated as follows:
6 months 12 months
6 months to 30 June to 31 Dec
to 30 June 2008 2008
2009 (restated) (restated)
£m £m £m
Profit for the period 0.1 1.3 6.7
Net pension cost/(credit) (net 0.6 (1.0) (2.1)
of tax) 0.2 - (1.5)
Exceptional items (net of tax) 0.2 - -
Loss from discontinued
operations
Underlying earnings for the 1.1 0.3 3.1
period
11. Dividends
6 months 6 months 12 months
to 30 June to 30 June to 31 Dec
2009 2008 2008
£m £m £m
Dividends to shareholders paid
in the period:
Interim dividend (in lieu of
final) for the year ended 31 - 1.0 1.0
December 2007 of 5p per share
Interim dividend for the year
ended 31 December 2008 of 2.5p - - 0.5
per share
Final dividend for the year
ended 31 December 2008 of 2.5p 0.5 - -
per share
0.5 1.0 1.5
An interim dividend for the year ending 31 December 2009 of 2.5p per ordinary share will be paid on 8 October 2009 to shareholders on the register on 11 September 2009.
12. Reconciliation of net cash flow to movement in net funds/(debt)
6 months 6 months 12 months
to 30 June to 30 June to 31 Dec
2009 2008 2008
£m £m £m
Net increase/(decrease) in 3.4 (0.5) 3.7
cash and cash equivalents (0.9) (6.8) 3.7
Cash (outflow)/inflow from
movement in borrowings
Change in net funds/(debt) 2.5 (7.3) 7.4
resulting from cash flows
Translation movements 0.5 0.5 (0.2)
Movement in net funds/(debt) 3.0 (6.8) 7.2
in the period
Opening net debt (0.4) (7.6) (7.6)
Closing net funds/(debt) 2.6 (14.4) (0.4)
Analysis of net funds/(debt)
Cash and cash equivalents - 10.2 2.7 7.2
current assets
Bank overdrafts - current - (0.2) (0.3)
liabilities
Interest-bearing loans and (7.6) (16.9) (7.3)
borrowings - non-current
liabilities
Closing net funds/(debt) 2.6 (14.4) (0.4)
13. Related parties
The Group has related party relationships with its directors and with the UK and US pension schemes. There has been no material change in the nature of the related party transactions described in note 31 of the 2008 Annual Report and Accounts.
14. Half-Yearly Financial Report
The Half-Yearly Financial Report will be sent to all shareholders in September 2009 and additional copies will be available from the Company's registered office at Rockingham Drive, Linford Wood East, Milton Keynes MK14 6LY or from the Group's website at www.molins.com.
Independent Review Report to Molins PLC
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 30 June 2009 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Statement of Changes in Equity, the Condensed Consolidated Statement of Financial Position and Condensed Consolidated Statement of Cash Flows and the related explanatory notes. We have read the other information contained in the Half-Yearly Financial Report 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 in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Services Authority ("the UK FSA"). Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this 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 for our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The Half-Yearly Financial Report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Half-Yearly Financial Report in accordance with the DTR of the UK FSA.
The annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this Half-Yearly Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the Company a conclusion 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 issued by the Auditing Practices Board for use in the UK.
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 Ireland) 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 six months ended 30 June 2009 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FSA.
M Matthewman
for and on behalf of KPMG Audit Plc
Chartered Accountants
Milton Keynes
28 August 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DDLFLKVBFBBQ
More |
||
| 25-08-09 | RNS |
|
This news article is displayed preformatted as it may contain results tables
RNS Number : 9338X Molins PLC 25 August 2009 25 August 2009 Notification of Interim Results Molins PLC will be announcing its interim results for the six months ended 30 June 2009 on Friday, 28th August 2009. Enquiries: Angharad Couch Citigate Dewe Rogerson 020 7638 9571 This information is provided by RNS The company news service from the London Stock Exchange END NORUSVRRKBRWUUR More |
||
| Date/Time | Subject | Author | ||
|---|---|---|---|---|
| 01-11-09 |
HOLD
Re: got another 100k
|
|||
|
| ||||
|
| ||||
|
You're assuming that they will be able to maintain the dividend.
What evidence do you have to support this? Have I missed a statement? E. More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
||||
| 30-10-09 | ||||
|
| ||||
|
| ||||
|
My buy order was left unloved and unfilled at close
tiger More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
||||
| 29-10-09 | ||||
|
| ||||
|
| ||||
|
over the last few days all at sub 60p
With 8% yield i am happy to keep sweeping them up. Got a very large chunk right now. tiger ps looking for me just a few a day at under 60p will do me fine. More | View thread (2) | Respond | Login to Vote up | Login to Vote down |
||||
| 06-10-09 | ||||
|
| ||||
|
| ||||
|
can anyone tell me what happen in 2004 ,and why the company made a loss of 9 million, stoping the div end 2004 and 2005
looking a great company now . More | View thread (1) | Respond | Login to Vote up | Login to Vote down |
||||
The contents of the postings summarised here represents the opinions of the authors and not of Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
They have not been approved or issued by Interactive Investor Trading Limited.
Discussion Board Terms & Conditions FSA Market Abuse Fact Sheet
More...