TIDMCPL
RNS Number : 7761X
Chapelthorpe PLC
10 December 2010
10 December 2010
Chapelthorpe plc
Chapelthorpe plc, an international manufacturer of coloured polypropylene staple
fibre and filament yarn, today announces its interim results for the six months
ended 30 September 2010.
Highlights
* Pre-exceptional operating profits increased to GBP1.3m (2009: GBP0.4m)
* Total volumes increased by 8%
* Revenues increased by 38% predominantly due to increases in raw material
prices most of which were passed onto customers
* Non-cash exceptional gain on UK pension deficit as a result of changes in
inflation assumptions compensating for actuarial loss as a result of
fall in yield on AA bonds
* Following the acquisition by Bronsstadet AB it is intended to de-list the
company from AIM
* Chapelthorpe plc is in the process of completing the triennial valuation of
the UK defined benefit pension scheme and this is likely to demonstrate a
further increase in the deficit
Chairman, Peter Gyllenhammar, commented:
"I am pleased to report that our businesses have continued to recover and have
performed reasonably well in the first six months of the year.
Central costs have been significantly reduced and much focus is now being spent
on the long term development of our fibres businesses."
For further information please contact:
+-------------------------------------------+-----------------+
| Chapelthorpe plc | |
+-------------------------------------------+-----------------+
| Kathryn Davenport | 0113 285 9020 |
+-------------------------------------------+-----------------+
| | |
+-------------------------------------------+-----------------+
| Brewin Dolphin | |
+-------------------------------------------+-----------------+
| Alexander Dewar | 0845 213 2076 |
+-------------------------------------------+-----------------+
| Neil McDonald | 0845 213 4277 |
+-------------------------------------------+-----------------+
Chairman's Statement
I am pleased to report that our businesses have continued to recover and have
performed reasonably well in the first six months of the year.
All our fibres operations have increased profitability compared to the same
period last year with volumes increased and sales margins either maintained or
improved.
Sales from operations were GBP55m (2009: GBP39.9m) generating a pre-exceptional
profit of GBP1.3m, compared to GBP0.4m for the corresponding period last year.
After non-cash exceptional items an operating profit of GBP3.5m resulted (2009:
GBP0.6m).
Pre-exceptional earnings before interest, tax, depreciation and amortisation
("EBITDA") for the period were GBP2.9m compared to GBP2m for the same period
last year.
The Group results are impacted by substantial administrative and other costs
relating to the UK defined benefit pension scheme, without which the Group would
have been able to launch a more offensive investment programme which would allow
it to strengthen and better support the scheme in the long term.
US Fibres
Sales for the period were GBP22.3m (2009: GBP15.2m) generating a pre-exceptional
operating profit of GBP0.2m compared to a loss of GBP0.05m in the same period
last year. EBITDA has increased to GBP1.4m from GBP1.1m.
Staple volumes have increased 18% compared to the same period last year with
both the automotive and geotextile sectors improving and more than compensating
for a fall in the needlepunch market.
The filament yarn sector has proved difficult with volumes falling 3% as a
result of a decline in the home furnishings market and strong price competition
in Europe.
The US Fibre results are pleasing considering the continued pressure on margins
due to significantly higher raw material prices and the increased power costs.
European Fibres
Sales for the period were GBP32.7m (2009: GBP24.7m) generating a pre-exceptional
operating profit of GBP1.3m compared to GBP0.7m in the same period last year.
EBITDA for the period was GBP1.7m compared to GBP1.2m in the previous period.
With European economies beginning to strengthen and trading conditions
improving, sales volumes have increased by 6%. Margins have, in the large, been
maintained despite a period of rising raw material prices and increased power
costs.
Raw material prices
In Europe the price increases in the second half of the last financial year
continued during most of the period. Prices in the US began falling in May 2010
although there was a rise towards the end of the period.
Borrowings
As at 30 September 2010 our net borrowings were GBP2.6m compared to GBP3.4m at
31 March 2010. Our average borrowings for the first six months were GBP4.8m
which compares to GBP5.5m for the same period last year.
Financing costs for the period were GBP0.4m (2009: GBP1.0m). The decrease is
due to an GBP0.5m increase in the expected return on the UK pension scheme
assets.
In addition to the loans and facilities the Group has contingent liabilities
relating to the UK defined benefit pension scheme and also to vacant properties.
Dividends
The Directors do not recommend the payment of an interim dividend (2009:
GBPNil).
Pensions
The IAS 19 valuation of the UK defined benefit scheme has resulted in a deficit
of GBP5.5m, a GBP1.4m decrease from the deficit of GBP6.9m at 31 March 2010.
The deficit has fallen despite an increase in scheme liabilities as a
consequence of the decrease in AA corporate bond yields but as a result of using
CPI rather than RPI when calculating statutory pension increases. Also, the
part of the overall deficit that emanates from Speciality Coatings (Darwen)
Limited's liability as a participating employer in the UK defined benefit scheme
has increased.
The size of the deficit is of concern to us and we are taking steps to address
this issue.
Strategy and Outlook
Following the offer by Bronsstadet AB in July 2010 central costs have been
significantly reduced and, thanks to the excellent achievements by the Head
Office staff, we now have a highly cost efficient central organisation in place.
Much focus is now spent on the long term development of our fibre businesses.
In order to secure the future competitiveness of these, in a difficult
environment, substantial investments are being considered in product development
as well as an upgrading of our production resources. It is the Board's belief
that in order for Chapelthorpe to maintain its long term profitability, our
operational units must offer first class products and services, supplied from
first class production facilities. We have excellent management teams in place
and it is now also the intention to seek further opportunities to enhance
profitability by making our operational entities collaborate closer going
forward.
Notice has been given that a general meeting will be held on 13 January 2011 for
the purpose of considering special resolutions to cancel the ordinary and
preference shares to trading on AIM.
Peter Gyllenhammar
Chairman
10 December 2010
Consolidated income statement (unaudited)
half year ended 30 September 2010
+-------------------------------------+--------+-----------+-----------+----------+
| | | Half | Half | Year |
| | | year | year | |
+-------------------------------------+--------+-----------+-----------+----------+
| | | 30 | 30 | 31 |
| | | September | September | March |
+-------------------------------------+--------+-----------+-----------+----------+
| | | 2010 | 2009 | 2010 |
+-------------------------------------+--------+-----------+-----------+----------+
| | Notes | GBP000 | GBP000 | GBP000 |
+-------------------------------------+--------+-----------+-----------+----------+
| Continuing operations | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Revenue | 2 | 54,988 | 39,929 | 87,853 |
+-------------------------------------+--------+-----------+-----------+----------+
| Cost of sales | | (48,955) | (34,649) | (75,833) |
+-------------------------------------+--------+-----------+-----------+----------+
| Gross profit | | 6,033 | 5,280 | 12,020 |
+-------------------------------------+--------+-----------+-----------+----------+
| Operating expenses | | (2,570) | (4,729) | (9,501) |
+-------------------------------------+--------+-----------+-----------+----------+
| Operating profit | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Operating profit before exceptional | | 1,260 | 387 | 2,221 |
| items | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Exceptional items | 3 | 2,203 | 164 | 298 |
+-------------------------------------+--------+-----------+-----------+----------+
| Operating profit | 2 | 3,463 | 551 | 2,519 |
+-------------------------------------+--------+-----------+-----------+----------+
| Financial expenses | | (399) | (1,015) | (2,007) |
+-------------------------------------+--------+-----------+-----------+----------+
| Financial income | | 32 | 30 | 72 |
+-------------------------------------+--------+-----------+-----------+----------+
| Net financing costs | 4 | (367) | (985) | (1,935) |
+-------------------------------------+--------+-----------+-----------+----------+
| Share of profit of joint venture | | ? | 43 | 125 |
+-------------------------------------+--------+-----------+-----------+----------+
| Profit (loss) before taxation | | 3,096 | (391) | 709 |
+-------------------------------------+--------+-----------+-----------+----------+
| Taxation | | (209) | (135) | 334 |
+-------------------------------------+--------+-----------+-----------+----------+
| Profit (loss) for the period | | 2,887 | (526) | 1,043 |
| attributable to equity shareholders | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Earnings (loss) per share | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Basic and diluted | 6 | 14.80p | (2.63)p | 5.28p |
+-------------------------------------+--------+-----------+-----------+----------+
| |
| Statement of comprehensive income(unaudited) |
| half year ended 30 September 2010 |
| |
+---------------------------------------------------------------------------------+
| | Half | Half | Year |
| | year | year | |
+----------------------------------------------+-----------+-----------+----------+
| | 30 | 30 | 31 |
| | September | September | March |
+----------------------------------------------+-----------+-----------+----------+
| | 2010 | 2009 | 2010 |
+----------------------------------------------+-----------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+----------------------------------------------+-----------+-----------+----------+
| Actuarial losses on defined benefit pension | (852) | (6,060) | (3,879) |
| schemes | | | |
+----------------------------------------------+-----------+-----------+----------+
| Movement of joint venture's share of Group | (292) | (699) | (489) |
| defined benefit pension deficit | | | |
+----------------------------------------------+-----------+-----------+----------+
| Exchange differences on translation of | (378) | (882) | (601) |
| foreign operations | | | |
+----------------------------------------------+-----------+-----------+----------+
| Profit in fair value of hedging derivatives | 91 | 95 | 220 |
+----------------------------------------------+-----------+-----------+----------+
| Total other comprehensive expense | (1,431) | (7,546) | (4,749) |
+----------------------------------------------+-----------+-----------+----------+
| Profit (loss) for the period | 2,887 | (526) | 1,043 |
+----------------------------------------------+-----------+-----------+----------+
| Total comprehensive income (expense) for the | | (8,072) | (3,706) |
| period | 1,456 | | |
| (attributable to equity shareholders) | | | |
+-------------------------------------+--------+-----------+-----------+----------+
+-------------------------------------+--------+-----------+-----------+----------+
| |
| Consolidated statement of financial position (unaudited) |
| half year ended 30 September 2010 |
| |
+---------------------------------------------------------------------------------+
| | | 30 | 30 | 31 |
| | | September | September | March |
+-------------------------------------+--------+-----------+-----------+----------+
| | | 2010 | 2009 | 2010 |
+-------------------------------------+--------+-----------+-----------+----------+
| | Notes | GBP000 | GBP000 | GBP000 |
| | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Non-current assets | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Property, plant and equipment | | 20,207 | 21,373 | 22,133 |
+-------------------------------------+--------+-----------+-----------+----------+
| Investments ? joint ventures | 5 | | ? | 292 |
| | | ? | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Other non-current assets | | 627 | 661 | 644 |
+-------------------------------------+--------+-----------+-----------+----------+
| | | 20,834 | 22,034 | 23,069 |
+-------------------------------------+--------+-----------+-----------+----------+
| Current assets | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Inventories | | 7,285 | 6,061 | 7,139 |
+-------------------------------------+--------+-----------+-----------+----------+
| Trade and other receivables | | 14,248 | 12,731 | 14,607 |
+-------------------------------------+--------+-----------+-----------+----------+
| Current tax assets | | ? | ? | 14 |
+-------------------------------------+--------+-----------+-----------+----------+
| Other financial assets | | ? | ? | 6 |
+-------------------------------------+--------+-----------+-----------+----------+
| Cash and cash equivalents | | 11,313 | 12,151 | 11,969 |
+-------------------------------------+--------+-----------+-----------+----------+
| | | 32,846 | 30,943 | 33,735 |
+-------------------------------------+--------+-----------+-----------+----------+
| Current liabilities | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Trade and other payables | | (13,157) | (11,400) | (14,244) |
+-------------------------------------+--------+-----------+-----------+----------+
| Current tax liabilities | | (582) | (248) | (547) |
+-------------------------------------+--------+-----------+-----------+----------+
| Other financial liabilities | | (72) | (256) | (194) |
+-------------------------------------+--------+-----------+-----------+----------+
| Borrowings and bank overdrafts | | (7,521) | (7,140) | (7,609) |
+-------------------------------------+--------+-----------+-----------+----------+
| | | (21,332) | (19,044) | (22,594) |
+-------------------------------------+--------+-----------+-----------+----------+
| Net current assets | | 11,514 | 11,899 | 11,141 |
+-------------------------------------+--------+-----------+-----------+----------+
| Non-current liabilities | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Retirement benefit obligations | 8 | (7,451) | (10,722) | (8,824) |
+-------------------------------------+--------+-----------+-----------+----------+
| Other financial liabilities | | (800) | (800) | (800) |
+-------------------------------------+--------+-----------+-----------+----------+
| Borrowings | | (6,418) | (8,260) | (7,723) |
+-------------------------------------+--------+-----------+-----------+----------+
| Provisions and other liabilities | | (970) | (2,179) | (1,216) |
+-------------------------------------+--------+-----------+-----------+----------+
| Deferred tax liabilities | | (3,203) | (4,256) | (3,597) |
+-------------------------------------+--------+-----------+-----------+----------+
| | | (18,842) | (26,217) | (22,160) |
+-------------------------------------+--------+-----------+-----------+----------+
| Net assets | | 13,506 | 7,716 | 12,050 |
+-------------------------------------+--------+-----------+-----------+----------+
| | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Shareholders' equity | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Called up share capital | | 10,202 | 10,202 | 10,202 |
+-------------------------------------+--------+-----------+-----------+----------+
| Share premium reserve | | 1,251 | 1,251 | 1,251 |
+-------------------------------------+--------+-----------+-----------+----------+
| Other reserves | | 1,206 | 1,118 | 1,493 |
+-------------------------------------+--------+-----------+-----------+----------+
| Retained earnings | | 847 | (4,855) | (896) |
+-------------------------------------+--------+-----------+-----------+----------+
| Total shareholders' funds | | 13,506 | 7,716 | 12,050 |
+-------------------------------------+--------+-----------+-----------+----------+
Consolidated statement of changes in shareholders' equity (unaudited)
half year ended 30 September 2010
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| | | | Cash | Foreign | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| | | Share | flow | currency | Capital | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| | Share | premium | hedging | translation | redemption | Retained | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| | capital | reserve | reserve | reserve | reserve | earnings | Total |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Balance at 1 April | 10,202 | 1,251 | (318) | 1,705 | 487 | 2,498 | 15,825 |
| 2009 | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Loss for the period | - | - | - | - | - | (526) | (526) |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Other comprehensive | | | | | | | |
| income: | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Currency | - | - | 31 | (882) | - | - | (851) |
| translation | | | | | | | |
| adjustments | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Actuarial losses on | - | - | - | - | - | (6,060) | (6,060) |
| pension scheme | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Movement in share | - | - | - | - | - | (699) | (699) |
| of joint venture | | | | | | | |
| defined benefit | | | | | | | |
| pension deficit | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Increase in fair | | | | | | | |
| value of hedging | - | - | 95 | - | - | - | 95 |
| derivatives | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Total comprehensive | | | | | | | |
| income for the | - | - | 126 | (882) | - | (7,285) | (8,041) |
| period ended 30 | | | | | | | |
| September 2009 | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Transactions with | | | | | | | |
| owners: | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Share options | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| - value of | - | - | - | - | - | 10 | 10 |
| employee services | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| - purchase of | ? | ? | ? | ? | ? | (78) | (78) |
| shares | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Balance at 30 | 10,202 | 1,251 | (192) | 823 | 487 | (4,855) | 7,716 |
| September 2009 | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Balance at 1 April | 10,202 | 1,251 | (318) | 1,705 | 487 | 2,498 | 15,825 |
| 2009 | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Profit for the | - | - | - | - | - | 1,043 | 1,043 |
| period | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Other comprehensive | | | | | | | |
| income: | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Currency | - | - | - | (576) | - | - | (576) |
| translation | | | | | | | |
| adjustments | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Actuarial losses on | | | | | | | |
| pension scheme | - | - | - | - | - | (3,879) | (3,879) |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Movement in share | - | - | - | - | - | (489) | 195 |
| of joint venture | | | | | | | |
| defined benefit | | | | | | | |
| pension deficit | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Decrease in fair | | | | | | | |
| value of hedging | ? | ? | 220 | (25) | ? | ? | (489) |
| derivatives | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Total comprehensive | | | | | | | |
| income for the | ? | ? | 220 | (601) | ? | (3,325) | (3,706) |
| period ended 31 | | | | | | | |
| March 2010 | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Transactions with | | | | | | | |
| owners: | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Share options | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| - value of | - | - | - | - | - | 9 | 9 |
| employee services | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| - purchase of | ? | ? | ? | ? | ? | (78) | (78) |
| shares | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Balance at 31 March | 10,202 | 1,251 | (98) | 1,104 | 487 | (896) | 12,050 |
| 2010 | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Balance at 1 April | 10,202 | 1,251 | (98) | 1,104 | 487 | (896) | 12,050 |
| 2010 | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Profit for the | - | - | - | - | - | 2,887 | 2,887 |
| period | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Other comprehensive | | | | | | | |
| income: | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Currency | - | - | - | (378) | - | - | (378) |
| translation | | | | | | | |
| adjustments | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Actuarial losses on | | | | | | | |
| pension scheme | - | - | - | - | - | (852) | (852) |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Movement in share | | | | | | | |
| of joint venture | ? | ? | ? | ? | ? | (292) | (292) |
| defined benefit | | | | | | | |
| pension deficit | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Increase in fair | | | | | | | |
| value of hedging | - | - | 91 | - | - | - | 91 |
| derivatives | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Total comprehensive | | | | | | | |
| income for the | ? | ? | 91 | (378) | ? | 1,743 | 1,456 |
| period ended 30 | | | | | | | |
| September 2010 | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
| Balance at 30 | 10,202 | 1,251 | (7) | 726 | 487 | 847 | 13,506 |
| September 2010 | | | | | | | |
+---------------------+---------+---------+---------------+---------------+------------+---------------+---------------+
+-------------------------------------+--------+-----------+-----------+----------+
| Consolidated statement of cash flows (unaudited) |
| half year ended 30 September 2010 |
| |
+---------------------------------------------------------------------------------+
| | | Half | Half | Year |
| | | year | year | |
+-------------------------------------+--------+-----------+-----------+----------+
| | | 30 | 30 | 31 March |
| | | September | September | |
+-------------------------------------+--------+-----------+-----------+----------+
| | | 2010 | 2009 | 2010 |
+-------------------------------------+--------+-----------+-----------+----------+
| | Notes | GBP000 | GBP000 | GBP000 |
+-------------------------------------+--------+-----------+-----------+----------+
| Cash flows from operating | | | | |
| activities | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Cash generated from operations | 7 | 1,297 | 3,497 | 5,746 |
+-------------------------------------+--------+-----------+-----------+----------+
| Tax paid | | (412) | (94) | (217) |
+-------------------------------------+--------+-----------+-----------+----------+
| Interest received | | 32 | 30 | 72 |
+-------------------------------------+--------+-----------+-----------+----------+
| Interest paid | | (180) | (347) | (677) |
+-------------------------------------+--------+-----------+-----------+----------+
| Net cash generated from operating | | 737 | 3,086 | 4,924 |
| activities | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Cash flows from investing | | | | |
| activities | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Purchases of property, plant and | | (378) | (501) | (2,299) |
| equipment | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Proceeds from sale of property, | | - | 7 | 22 |
| plant and equipment | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Net cash (used in) investing | | (378) | (494) | (2,277) |
| activities | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Cash flows from financing | | | | |
| activities | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Net proceeds from new bank loans | | 265 | - | 261 |
+-------------------------------------+--------+-----------+-----------+----------+
| Repayment of borrowings | | (1,188) | (1,100) | (1,409) |
+-------------------------------------+--------+-----------+-----------+----------+
| Purchase of own shares | | - | (78) | (78) |
+-------------------------------------+--------+-----------+-----------+----------+
| Net cash (used in) financing | | (923) | (1,178) | (1,226) |
| activities | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| (Decrease) increase in cash and | | (564) | 1,414 | 1,421 |
| cash equivalents | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Cash and cash equivalents at | | 6,519 | 4,957 | 4,957 |
| beginning of period | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Exchange gains on cash and cash | | 47 | 36 | 141 |
| equivalents | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| Cash and cash equivalents at end of | | 6,002 | 6,407 | 6,519 |
| the period | | | | |
+-------------------------------------+--------+-----------+-----------+----------+
| |
| Consolidated reconciliation of net cash flow to movement in net debt |
| (unaudited) |
| half year ended 30 September 2010 |
| |
+---------------------------------------------------------------------------------+
| | Half | Half | Year |
| | year | year | |
+----------------------------------------------+-----------+-----------+----------+
| | 30 | 30 | 31 March |
| | September | September | |
+----------------------------------------------+-----------+-----------+----------+
| | 2010 | 2009 | 2010 |
+----------------------------------------------+-----------+-----------+----------+
| | GBP000 | GBP000 | GBP000 |
+----------------------------------------------+-----------+-----------+----------+
| Net (decrease) increase in cash and cash | (564) | 1,414 | 1,421 |
| equivalents | | | |
+----------------------------------------------+-----------+-----------+----------+
| Decrease in debt financing | 923 | 1,100 | 1,149 |
+----------------------------------------------+-----------+-----------+----------+
| Change in net debt from cash flows | 359 | 2,514 | 2,570 |
+----------------------------------------------+-----------+-----------+----------+
| Exchange adjustments | 378 | 931 | 761 |
+----------------------------------------------+-----------+-----------+----------+
| Movement in net debt in the period | 737 | 3,445 | 3,331 |
+----------------------------------------------+-----------+-----------+----------+
| Net debt at start of period | (3,363) | (6,694) | (6,694) |
+----------------------------------------------+-----------+-----------+----------+
| Net debt at end of period | (2,626) | (3,249) | (3,363) |
+-------------------------------------+--------+-----------+-----------+----------+
Notes to the interim accounts
half year ended 30 September 2010
1. Basis of preparation
The interim financial statements of Chapelthorpe plc for the half year ended 30
September 2010 are unaudited and do not comprise statutory accounts within the
meaning of Section 434 of the Companies Act 2006.
The financial information has been prepared on the basis of the accounting
policies set out in the Group's Annual Report and Accounts for the year ended 31
March 2010 which is available on the Company's website at www.chapelthorpe.com.
The comparative results for the year ended 31 March 2010 are abridged and as
such do not represent statutory accounts. Those accounts have been reported on
by the Company's auditors and delivered to the Registrar of Companies. The
Independent Auditors' Report was unqualified and did not contain statements
under Section 498(2) or (3) of the Companies Act 2006.
Of the new standards, amendments and interpretations that are in issue and
mandatory for the financial year ended 31 March 2011, there is no financial
impact on these interim financial statements.
2. Segmental reporting
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| | | European | US | Total | | | |
| | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Half year | | Fibres | Fibres | Fibres | Un-allocated | Total | |
| ended | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| 30 September | | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | |
| 2010 | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Revenue | | 32,730 | 22,258 | 54,988 | - | 54,988 | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| EBITDA* | | 1,693 | 1,447 | 3,140 | (239) | 2,901 | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Depreciation | | (440) | (1,201) | (1,641) | | (1,641) | |
| | | | | | - | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Operating | | | | | | | |
| profit (loss) | | 1,253 | 246 | 1,499 | (239) | 1,260 | |
| before | | | | | | | |
| exceptional | | | | | | | |
| items | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Exceptional | | - | - | - | 2,203 | 2,203 | |
| items | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Operating | | 1,253 | 246 | 1,499 | 1,964 | 3,463 | |
| profit | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Net financial | | 57 | (93) | (36) | (331) | (367) | |
| expense | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Share of joint | | | | | | | |
| venture | | - | - | - | - | - | |
| profits | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Profit before | | 1,310 | 153 | 1,463 | 1,633 | 3,096 | |
| taxation | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Taxation | | | | | | (209) | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
| Profit for the | | | | | | 2,887 | |
| period | | | | | | | |
+----------------+------+--------------+------------------+------------------+--------------+------------------+-+
* EBITDA is pre-exceptional earnings before interest, tax, depreciation and
amortisation.
+---------------+----------+---------+---------+--------------+---------+
| | European | US | Total | | |
+---------------+----------+---------+---------+--------------+---------+
| Half year | Fibres | Fibres | Fibres | Un-allocated | Total |
| ended | | | | | |
+---------------+----------+---------+---------+--------------+---------+
| 30 September | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
| 2009 | | | | | |
+---------------+----------+---------+---------+--------------+---------+
| Revenue | 24,730 | 15,199 | 39,929 | - | 39,929 |
+---------------+----------+---------+---------+--------------+---------+
| EBITDA* | 1,176 | 1,099 | 2,275 | (275) | 2,000 |
+---------------+----------+---------+---------+--------------+---------+
| Depreciation | (465) | (1,148) | (1,613) | - | (1,613) |
+---------------+----------+---------+---------+--------------+---------+
| Operating | | | | | |
| (loss) profit | 711 | (49) | 662 | (275) | 387 |
| before | | | | | |
| exceptional | | | | | |
| items | | | | | |
+---------------+----------+---------+---------+--------------+---------+
| Exceptional | - | - | - | 164 | 164 |
| items | | | | | |
+---------------+----------+---------+---------+--------------+---------+
| Operating | 711 | (49) | 662 | (111) | 551 |
| (loss) profit | | | | | |
+---------------+----------+---------+---------+--------------+---------+
| Net financial | 32 | (131) | (99) | (886) | (985) |
| expense | | | | | |
+---------------+----------+---------+---------+--------------+---------+
| Share of | | | | | |
| joint venture | - | - | - | 43 | 43 |
| profits | | | | | |
+---------------+----------+---------+---------+--------------+---------+
| Profit (loss) | 743 | (180) | 563 | (954) | (391) |
| before | | | | | |
| taxation | | | | | |
+---------------+----------+---------+---------+--------------+---------+
| Taxation | | | | | (135) |
+---------------+----------+---------+---------+--------------+---------+
| Loss for the | | | | | (526) |
| period | | | | | |
+---------------+----------+---------+---------+--------------+---------+
+---------------+--------------------+----------+----------+--------------+---------+
| | European | US | Total | | |
+---------------+--------------------+----------+----------+--------------+---------+
| Year ended | Fibres | Fibres | Fibres | Un-allocated | Total |
+---------------+--------------------+----------+----------+--------------+---------+
| 31 March 2010 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+---------------+--------------------+----------+----------+--------------+---------+
| Revenue | 53,795 | 34,058 | 87,853 | - | 87,853 |
+---------------+--------------------+----------+----------+--------------+---------+
| EBITDA* | 3,308 | 2,959 | 6,267 | (878) | 5,389 |
+---------------+--------------------+----------+----------+--------------+---------+
| Depreciation | (878) | (2,290) | (3,168) | - | (3,168) |
+---------------+--------------------+----------+----------+--------------+---------+
| Operating | | 669 | 3,099 | (878) | 2,221 |
| profit (loss) | 2,430 | | | | |
| before | | | | | |
| exceptional | | | | | |
| items | | | | | |
+---------------+--------------------+----------+----------+--------------+---------+
| Exceptional | - | - | - | 298 | 298 |
| items | | | | | |
+---------------+--------------------+----------+----------+--------------+---------+
| Operating | 2,430 | 669 | 3,099 | (580) | 2,519 |
| profit (loss) | | | | | |
+---------------+--------------------+----------+----------+--------------+---------+
| Net financing | 79 | (489) | (410) | (1,525) | (1,935) |
| costs | | | | | |
+---------------+--------------------+----------+----------+--------------+---------+
| Share of | | | | | |
| joint venture | - | ? | ? | 125 | 125 |
| profits | | | | | |
+---------------+--------------------+----------+----------+--------------+---------+
| Profit (loss) | | 180 | 2,689 | (1,980) | 709 |
| before | 2,509 | | | | |
| taxation | | | | | |
+---------------+--------------------+----------+----------+--------------+---------+
| Taxation | | | | | 334 |
+---------------+--------------------+----------+----------+--------------+---------+
| Profit for | | | | | 1,043 |
| the year | | | | | |
+---------------+--------------------+----------+----------+--------------+---------+
The Group operations are based in three geographical regions being the US, the
UK and Austria. The UK is the home of the Parent Company.
The revenue analysis in the table below is based on the location of the
customer:
+---------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+---------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+---------------------------------------------+-----------+-----------+--------+
| | 2010 | 2009 | 2010 |
+---------------------------------------------+-----------+-----------+--------+
| Continuing operations | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-----------+-----------+--------+
| Europe | 29,581 | 22,506 | 49,124 |
+---------------------------------------------+-----------+-----------+--------+
| North America | 22,615 | 15,428 | 34,627 |
+---------------------------------------------+-----------+-----------+--------+
| Australasia and Far East | 2,009 | 1,787 | 3,435 |
+---------------------------------------------+-----------+-----------+--------+
| Rest of the World | 783 | 208 | 667 |
+---------------------------------------------+-----------+-----------+--------+
| | 54,988 | 39,929 | 87,853 |
+---------------------------------------------+-----------+-----------+--------+
3. Exceptional items
During the period, the Group has incurred a number of exceptional Items,
analysed as follows:
+---------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+---------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+---------------------------------------------+-----------+-----------+--------+
| | 2010 | 2009 | 2010 |
+---------------------------------------------+-----------+-----------+--------+
| Continuing operations | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-----------+-----------+--------+
| Pension Fund past service credit | (2,299) | - | - |
+---------------------------------------------+-----------+-----------+--------+
| Strategic advice | 96 | - | - |
+---------------------------------------------+-----------+-----------+--------+
| Provision for onerous leases | - | (164) | (298) |
+---------------------------------------------+-----------+-----------+--------+
| | (2,203) | (164) | (298) |
+---------------------------------------------+-----------+-----------+--------+
4. Net financing costs
+---------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+---------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+---------------------------------------------+-----------+-----------+--------+
| | 2010 | 2009 | 2010 |
+---------------------------------------------+-----------+-----------+--------+
| Continuing operations | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-----------+-----------+--------+
| Interest payable | | | |
+---------------------------------------------+-----------+-----------+--------+
| Bank loans, overdrafts and short-term | 156 | 313 | 688 |
| facilities | | | |
+---------------------------------------------+-----------+-----------+--------+
| Preference share dividends | 23 | 23 | 46 |
+---------------------------------------------+-----------+-----------+--------+
| Other interest | 35 | 59 | 98 |
+---------------------------------------------+-----------+-----------+--------+
| | 214 | 395 | 832 |
+---------------------------------------------+-----------+-----------+--------+
| Interest receivable | | | |
+---------------------------------------------+-----------+-----------+--------+
| Bank and other deposits | (22) | (30) | (47) |
+---------------------------------------------+-----------+-----------+--------+
| Other interest | (10) | ? | (25) |
+---------------------------------------------+-----------+-----------+--------+
| | (32) | (30) | (72) |
+---------------------------------------------+-----------+-----------+--------+
| Net borrowing costs | 182 | 365 | 760 |
+---------------------------------------------+-----------+-----------+--------+
| Interest on pension scheme liabilities | 185 | 620 | 1,175 |
+---------------------------------------------+-----------+-----------+--------+
| Net financing costs | 367 | 985 | 1,935 |
+---------------------------------------------+-----------+-----------+--------+
| Interest payable | 214 | 395 | 832 |
+---------------------------------------------+-----------+-----------+--------+
| Interest payable on pension scheme | 185 | 620 | 1,175 |
| liabilities | | | |
+---------------------------------------------+-----------+-----------+--------+
| Total financial expense | 399 | 1,015 | 2,007 |
+---------------------------------------------+-----------+-----------+--------+
| Interest receivable | (32) | (30) | (72) |
+---------------------------------------------+-----------+-----------+--------+
| Net financing costs | 367 | 985 | 1,935 |
+---------------------------------------------+-----------+-----------+--------+
5. Investments - joint ventures
+---------------------------------------------+-----------+-----------+--------+
| | Half | Half | Year |
| | year | year | |
+---------------------------------------------+-----------+-----------+--------+
| | 30 | 30 | 31 |
| | September | September | March |
+---------------------------------------------+-----------+-----------+--------+
| | 2010 | 2009 | 2010 |
+---------------------------------------------+-----------+-----------+--------+
| | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-----------+-----------+--------+
| Opening balance | 292 | 656 | 656 |
+---------------------------------------------+-----------+-----------+--------+
| Share of retained profit | - | 43 | 125 |
+---------------------------------------------+-----------+-----------+--------+
| Movement in share of defined benefit | (292) | (699) | (489) |
| pension deficit | | | |
+---------------------------------------------+-----------+-----------+--------+
| Closing balance | - | ? | 292 |
+---------------------------------------------+-----------+-----------+--------+
The joint venture represents the Group's 40% remaining investment in Speciality
Coatings (Darwen) Limited following the sale of a 60% stake on 30 October 2008.
6. Earnings per share
+----------------------+-----------+-----------+--------+----+------+-----------+--------+
| | | | Basic and diluted |
+----------------------+--------------------------------+----+---------------------------+
| | Basic and diluted | | loss before |
+----------------------+--------------------------------+----+---------------------------+
| | loss per share | | exceptionals per share |
+----------------------+--------------------------------+----+---------------------------+
| | Half | Half | Year | Half | Half | Year |
| | year | year | | year | year | |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| | 30 | 30 | 31 | 30 | 30 | 31 |
| | September | September | March | September | September | March |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| | 2010 | 2009 | 2010 | 2010 | 2009 | 2010 |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| Profit (loss) for | 2,887 | (526) | 1,043 | 2,887 | (526) | 1,043 |
| the period | | | | | | |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| Exceptional items | - | ? | - | (2,203) | (164) | (298) |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| Tax effect of | - | ? | - | - | ? | - |
| exceptional items | | | | | | |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| Profit (loss) | | | | | | |
| attributable to | 2,887 | (526) | 1,043 | 684 | (690) | 745 |
| ordinary | | | | | | |
| shareholders | | | | | | |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| Weighted average | | | | | | |
| number of ordinary | 19,504 | 19,985 | 19,745 | 19,504 | 19,985 | 19,745 |
| shares in issue | | | | | | |
| during the period * | | | | | | |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| Basic and diluted | | | | | | |
| profit (loss) per | 14.80p | (2.63)p | 5.28p | 3.51p | (3.45)p | 3.77p |
| ordinary share | | | | | | |
+----------------------+-----------+-----------+--------+-----------+-----------+--------+
| | | | | | | | |
+----------------------+-----------+-----------+--------+----+------+-----------+--------+
* excluding shares held by the Chapelthorpe plc 1996 Employee Benefit Trust.
The effect of the exceptional items on the earnings per share for the current
period is a profit of 11.29p (0.82p half year ended 30 September 2009; 1.51p:
year ended 31 March 2010).
7. Cash generated from operations
+-+---------------------------+-----------------+-----------+-----------+---------+
| | | Half | Half | Year |
| | | year | year | |
+-----------------------------+-----------------+-----------+-----------+---------+
| | | 30 | 30 | 31 |
| | | September | September | March |
+-----------------------------+-----------------+-----------+-----------+---------+
| | | 2010 | 2009 | 2010 |
+-----------------------------+-----------------+-----------+-----------+---------+
| | | GBP000 | GBP000 | GBP000 |
+-----------------------------+-----------------+-----------+-----------+---------+
| Operating profit | | 3,463 | 551 | 2,519 |
+-----------------------------+-----------------+-----------+-----------+---------+
| Depreciation | | 1,641 | 1,613 | 3,168 |
+-----------------------------+-----------------+-----------+-----------+---------+
| Charge in respect of | | - | 10 | 9 |
| employee share scheme | | | | |
+-----------------------------+-----------------+-----------+-----------+---------+
| Profit on disposal of fixed | | - | (1) | (8) |
| assets | | | | |
+-----------------------------+-----------------+-----------+-----------+---------+
| Working capital: | | | | |
+-----------------------------+-----------------+-----------+-----------+---------+
| -| (increase) decrease in | | (307) | 660 | (421) |
| | inventories | | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| -| decrease (increase) in | | 46 | (1,202) | (3,339) |
| | debtors | | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| -| (decrease)increase in | | (872) | 2,589 | 5,672 |
| | creditors | | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| (decrease) increase in | | (67) | 14 | (210) |
| retirement benefit | | | | |
| obligations | | | | |
+-----------------------------+-----------------+-----------+-----------+---------+
| | | 3,904 | 4,234 | 7,390 |
+-----------------------------+-----------------+-----------+-----------+---------+
| Exceptional items: | | | | |
+-----------------------------+-----------------+-----------+-----------+---------+
| -| Pension past service cost | - amount | (2,299) | - | - |
| | | recognised in | | | |
| | | period | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| | | | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| -| Fibres restructuring | - amount paid | - | (94) | (127) |
| | | in period | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| | | | | |
+-----------------------------+-----------------+-----------+-----------+---------+
| -| head office restructuring | - amount paid | | (128) | (128) |
| | | in period | - | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| | | | | |
+-----------------------------+-----------------+-----------+-----------+---------+
| -| provision for onerous | - amount | - | (164) | (298) |
| | lease costs | (released) | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| | | - amount paid | (276) | (341) | (1,057) |
| | | in period | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| | | | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| -| strategic advice | - amount | 96 | | - |
| | | recognised in | | - | |
| | | period | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
| | - amount paid | (128) | (10) | (34) |
| | in period | | | |
+-----------------------------+-----------------+-----------+-----------+---------+
| Cash generated from operations | 1,297 | 3,497 | 5,746 |
+-----------------------------------------------+-----------+-----------+---------+
| | | | | |
+-+---------------------------+-----------------+-----------+-----------+---------+
8. Retirement benefits
The Group operates a number of pension schemes. The major scheme is in the UK
and is of the defined benefit type. With effect from 5 September 2008 this
scheme was closed to future accrual.
In addition, in Austria there are leaving indemnities which represent a defined
benefit on retirement.
All other pension schemes which are operated by the Group are of a defined
contribution type.
The last full actuarial valuation of the UK defined benefit scheme was carried
out by a qualified independent actuary at 5 April 2007 and this has been updated
to 30 September 2010.
The amounts recognised in the Consolidated Income Statement for the UK defined
benefit scheme are analysed as follows:
+---------------------------------------------+-----------+-----------+---------+
| | Half | Half | Year |
| | year | year | |
+---------------------------------------------+-----------+-----------+---------+
| | 30 | 30 | 31 |
| | September | September | March |
+---------------------------------------------+-----------+-----------+---------+
| | 2010 | 2009 | 2010 |
+---------------------------------------------+-----------+-----------+---------+
| | GBP000 | GBP000 | GBP000 |
+---------------------------------------------+-----------+-----------+---------+
| Current service cost | ? | ? | - |
+---------------------------------------------+-----------+-----------+---------+
| Interest on pension scheme liabilities | (1,417) | (1,410) | (2,791) |
+---------------------------------------------+-----------+-----------+---------+
| Expected return on pension scheme assets | 1,279 | 790 | 1,718 |
+---------------------------------------------+-----------+-----------+---------+
| Past service cost | 2,299 | ? | - |
+---------------------------------------------+-----------+-----------+---------+
| | 2,161 | (620) | (1,073) |
+---------------------------------------------+-----------+-----------+---------+
The net of "interest on pension scheme liabilities" and "expected return on
pension scheme assets" above has been included within "interest on pension
scheme liabilities" in net financing costs. All other amounts are included in
operating expenses.
The amount of actuarial losses recognised in the Statement of Comprehensive
Income in respect of the UK scheme is GBP1,852,000 (GBP6,060,000: half year
ended 30 September 2009; GBP3,669,000: year ended 31 March 2010).
The net liability recognised in the Consolidated Statement of Financial Position
in respect of the UK scheme is as follows:
+----------+-------------------------------------+-----------------+-----------+---------+
| | | Half | Half | Year |
| | | year | year | |
+----------+-------------------------------------+-----------------+-----------+---------+
| | | 30 | 30 | 31 |
| | | September | September | March |
+----------+-------------------------------------+-----------------+-----------+---------+
| | | 2010 | 2009 | 2010 |
+----------+-------------------------------------+-----------------+-----------+---------+
| | | GBP000 | GBP000 | GBP000 |
+----------+-------------------------------------+-----------------+-----------+---------+
| UK | - (deficit) | (5,527) | (8,834) | (6,896) |
| scheme | | | | |
+----------+-------------------------------------+-----------------+-----------+---------+
| Austrian | | | | |
| scheme | - leaving indemnity | (1,924) | (1,888) | (1,928) |
+----------+-------------------------------------+-----------------+-----------+---------+
| Net liability on Consolidated Statement of | (7,451) | (10,722) | (8,824) |
| Financial Position | | | |
+----------+-------------------------------------+-----------------+-----------+---------+
Under the terms of the sale of the 60% stake in Speciality Coatings (Darwen)
Limited (SCD), SCD was to remain a participating employer of the UK scheme,
liable for their share of the scheme liabilities and obligated to contribute to
the scheme's funding and running expenses. Consequently, the UK scheme's
deficit recognises a discounted value of deficit contributions receivable from
SCD of GBP2.0m, on the assumption that SCD continues to make contributions over
a future 10 year period.
Principal actuarial assumptions
UK scheme
The principal actuarial assumptions used at the balance sheet date were as
follows:
+-----------------------------+-------------+-+-------------+--+-------------+
| | Half | | Half | | Year |
| | year | | year | | |
+-----------------------------+-------------+-+-------------+--+-------------+
| | 30 | | 30 | | 31 |
| | September | | September | | March |
+-----------------------------+-------------+-+-------------+--+-------------+
| | 2010 | | 2009 | | 2010 |
+-----------------------------+-------------+-+-------------+--+-------------+
| Discount rate | 5.10% | | 5.60% | | 5.70% |
+-----------------------------+-------------+-+-------------+--+-------------+
| Expected return on assets | 4.80% | | 4.80% | | 5.80% |
+-----------------------------+-------------+-+-------------+--+-------------+
| Inflation rate | 2.50% | | 3.20% | | 3.60% |
+-----------------------------+-------------+-+-------------+--+-------------+
| Future pension increases | 2.50% | | 3.20% | | 2.40% |
+-----------------------------+-------------+-+-------------+--+-------------+
| Salary increases | - | | 3.20% | | ? |
+-----------------------------+-------------+-+-------------+--+-------------+
| Mortality assumptions: | | | | | |
+-----------------------------+-------------+-+-------------+--+-------------+
| Current pensioners ? | PAY92YOB+MC | | PAY92YOB+MC | | PAY92YOB+MC |
| actuarial tables used | | | | | |
+-----------------------------+-------------+-+-------------+--+-------------+
| Current pensioners ? life | 20.5 | | 20.5 | | 20.5 |
| expectancy at age 65 | | | | | |
+-----------------------------+-------------+-+-------------+--+-------------+
| Future pensioners ? | PAY92YOB+MC | | PAY92YOB+MC | | PAY92YOB+MC |
| actuarial tables used | | | | | |
+-----------------------------+-------------+-+-------------+--+-------------+
| Future pensioners ? life | 21.9 | | 21.9 | | 21.9 |
| expectancy at age 65 | | | | | |
+-----------------------------+-------------+-+-------------+--+-------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UROVRRUAUAAA
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