TIDMASBE
RNS Number : 0887J
Associated British Engineering PLC
30 November 2018
ASSOCIATED BRITISH ENGINEERING PLC
INTERIM REPORT
FOR THE SIX MONTHSED
30 SEPTEMBER 2018
ASSOCIATED BRITISH ENGINEERING PLC
INTERIM REPORT
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
CONTENTS PAGE
Chairman's statement 1
Responsibility statement 2
Group income statement 3
Group statement of comprehensive income 4
Group interim balance sheet 5
Group interim statement of changes in shareholders'
equity 6
Group interim cash flow statement 7 - 8
Notes to the interim report 9 - 17
ASSOCIATED BRITISH ENGINEERING PLC
CHAIRMAN'S STATEMENT
INTERIM REPORT FOR THE SIX MONTHSED 30 SEPTEMBER 2018
SUMMARY OF RESULTS Six months Six months Year to
to to 30 March
30 September 30 September 2018
2018 2017 GBP'000
GBP'000 GBP'000
Revenue 498 666 1,603
Loss before Tax (342) (377) (582)
Earnings/(loss) per Share
Basic (16.7p) (18.4p) (20.6p)
Diluted (16.7p) (18.4p) (20.6p)
The Group incurred a pre-tax loss of GBP342,000 for the
six-month period to 30 September 2018. This represents a decreased
loss of GBP35,000 on the similar financial period last year and is
due to a reduction in the loss before interest and tax at British
Polar Engines Limited (`BPE`).
The turnover for our main operating subsidiary British Polar
Engines (BPE) decreased to GBP498,000 for the period ending 30(th)
September 2018 (2017 GBP666,000) resulting in a reduced loss for
the interim period of GBP357,000 (2017 loss GBP369,000). It is a
disappointment that sales have further declined and as a result and
following these results the Board have instituted a round of
reorganisation and rationalisation within the various arms of the
business. It is anticipated that these rationalisations will
produce a saving in excess of GBP150,000 in a full year. Since the
interim figures there have been signs that sales opportunities in
the spares business are increasing and we are working hard to
convert these leads into firm sales.
The Board keeps the central costs of the Group under review and
maintains them at a very low level. There are some signs that sales
opportunities are increasing again and we are working hard to
convert them. The Board is also working to ensure that its
investments and cash in the business generate value for
shareholders commensurate with the risk.
The Board continues to review options for the future development
of the Group.
Colin Weinberg and Rupert Pearce Gould
Chairmen
30 November 2018
1
ASSOCIATED BRITISH ENGINEERING PLC
RESPONSIBILITY STATEMENT
INTERIM REPORT FOR THE SIX MONTHSED 30 SEPTEMBER 2018
The Directors of the Company confirm to the best of their
knowledge that:
a) the Interim Report has been prepared in accordance with IAS 34;
b) the Interim Report includes a fair view of the information
required by DTR 4.2.7R, being an indication of the important events
that have occurred during the first six months of the financial
year and a description of the principal risks and uncertainties for
the remaining six months of the year; and
c) the Interim Report includes a fair review of the information
required by DTR 4.2.8R, being disclosure of related party
transactions 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
latest annual financial statements that could do so.
By order of the Board
Colin Weinberg and Rupert Pearce Gould
Chairmen
30 November 2018
2
ASSOCIATED BRITISH ENGINEERING PLC
GROUP INCOME STATEMENT
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
Six months Six months Period
to to to
30 September 30 September 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
Revenue 498 666 1,603
Operating costs (835) (1,039) (2,128)
-------------- --------------- ----------
OPERATING LOSS (337) (373) (525)
Finance expense (5) (4) (57)
Finance income - - -
-------------- --------------- ----------
LOSS BEFORE TAXATION (342) (377) (582)
Taxation - - 160
-------------- --------------- ----------
LOSS FOR PERIOD ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT COMPANY (342) (377) (422)
============== =============== ==========
LOSS PER SHARE ON LOSS FOR THE PERIOD
ATTRIBUATABLE TO EQUITY HOLDERS OF
THE PARENT COMPANY
Basic and diluted (16.7p) (18.4p) (20.6p)
============== =============== ==========
Loss for the period attributable
to:
Owners of the company (342) (377) (422)
Non-controlling interest - - -
-------------- --------------- ----------
(342) (377) (422)
============== =============== ==========
3
ASSOCIATED BRITISH ENGINEERING PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
Six months Six months Period
to to to
30 September 30 September 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
Loss for the period (342) (377) (422)
-------------- -------------- ----------
Other comprehensive income
Re-measurement of the net defined
benefit liability (*) - - (54)
Gain/(loss) on available for sale
financial asset (**) 384 (52) (168)
Surplus on revaluation of properties - - 600
-------------- -------------- ----------
Other comprehensive income for the
year 384 (52) 378
TOTAL COMPREHENSIVE EXPENSE FOR THE
YEAR 42 (429) (44)
============== ============== ==========
Total comprehensive loss attributable
to:
Owners of the company 42 (429) (44)
Non-controlling interests - - -
-------------- -------------- ----------
42 (429) (44)
============== ============== ==========
(*) = Items which will not subsequently be reclassified to the
Income Statement.
(**) = Items which may subsequently be reclassified to the
Income Statement.
All activities are classified as continuing.
4
ASSOCIATED BRITISH ENGINEERING PLC Company Number: 00110663
GROUP INTERIM BALANCE SHEET
AS AT 30 SEPTEMBER 2018
At 30 At 30 Period
September September to
2018 2017 31 March
2018
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 784 272 833
Available for sale financial assets 565 382 264
----------- ----------- ----------
1,349 654 1,097
Current assets
Inventories 1,008 1,345 1,037
Trade and other receivables 220 215 518
Cash and cash equivalents 474 346 344
----------- ----------- ----------
1,702 1,906 1,899
----------- ----------- ----------
Total assets 3,051 2,560 2,996
=========== =========== ==========
EQUITY AND LIABILITIES
Called up share capital 51 51 51
Deferred shares 2,594 2,594 2,594
Share premium account 5,370 5,370 5,370
Other components of equity 11 11 11
Available for Sale financial assets 319 52 (64)
Revaluation reserve 600 - 600
Retained earnings (7,927) (7,487) (7,586)
----------- ----------- ----------
Equity attributable to the Company's
Equity Shareholders 1,018 591 976
Non-controlling interests - - -
----------- ----------- ----------
1,018 591 976
----------- ----------- ----------
LIABILITIES
Non-current liabilities
Retirement benefit obligation 1,354 1,380 1,354
Obligation under finance leases 4 18 13
Deferred tax liabilities - - -
----------- ----------- ----------
1,358 1,398 1,367
----------- ----------- ----------
Current liabilities
Trade and other payables 660 545 631
Obligations under finance leases 15 26 22
----------- ----------- ----------
675 571 653
----------- ----------- ----------
Total liabilities 2,033 1,969 2,020
----------- ----------- ----------
Total equity and liabilities 3,051 2,560 2,996
=========== =========== ==========
5
ASSOCIATED BRITISH ENGINEERING PLC
GROUP INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
Available
for Sale Attributable
Share Share Deferred Other Financial Revaluation Retained to owners
Capital Premium Shares Reserve Assets reserve Earnings of parent Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 4
April
2017 51 5,370 2,594 11 104 - (7,110) 1,020 1,020
Loss for the
period - - - - - - (377) (377) (377)
Unrealised
loss
on Available
For Sale
Financial
Assets (**) - - - - (52) - - (52) (52)
Balance at 30
September
2017 51 5,370 2,594 11 52 - (7,487) 591 591
--------- --------- ---------- --------- ---------- ------------ ---------- -------------- --------
Loss for the
period - - - - - - (45) (45) (45)
Other
comprehensive
income
Actuarial loss
in
defined
benefit
plan - - - - - - (54) (54) (54)
Unrealised
loss
on Available
For Sale
Financial
Assets (**) - - - - (116) - - (116) (116)
Revaluation
Surplus on
revaluation
of freehold
property - - - - - 600 - 600 600
--------- --------- ---------- --------- ---------- ------------ ---------- -------------- --------
Total
comprehensive
income
for the
period - - - - (116) 600 (99) 385 385
--------- --------- ---------- --------- ---------- ------------ ---------- -------------- --------
Balance at 1
April
2018 51 5,370 2,594 11 (64) 600 (7,586) 976 976
Loss for the
period (342) (342) (342)
Unrealised
gain
on Available
For Sale
Financial
Assets (**) 384 384 384
--------- --------- ---------- --------- ---------- ------------ ---------- -------------- --------
Balance at 30
September
2018 51 5,370 2,594 11 319 600 (7,927) 1,018 1,018
========= ========= ========== ========= ========== ============ ========== ============== ========
(*) = Items which will not subsequently be reclassified to the Income Statement.
(**) = Items which may subsequently be reclassified to the Income Statement.
6
ASSOCIATED BRITISH ENGINEERING PLC
GROUP INTERIM CASH FLOW STATEMENT
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
Six months Six months Period
to to to
30 September 30 September 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash used in operations (8) (142) (256)
Interest received - 9 -
Interest paid (4) (19) (57)
Taxation - - 160
-------------- -------------- ----------
Net cash used in operating activities (12) (152) (153)
-------------- -------------- ----------
Cash flows from investing activities
Proceeds from sale of equipment 18 - 2
Purchase of equipment (2) - (14)
Purchase of investments - - -
Sale proceeds of investments held 142 - -
for sale
Net cash used in investing activities 158 - (12)
-------------- -------------- ----------
Cash flows from financing activities
New finance lease - - 11
Proceeds from finance leases/(redemption
of) (16) (37) (37)
Redemption of loan notes - - -
Net cash generated from financing
activities (16) (37) (26)
-------------- -------------- ----------
Net decrease in cash and cash equivalents 130 (189) (191)
Cash and cash equivalents at beginning
of period 344 535 535
-------------- -------------- ----------
Cash and cash equivalents at end
of period 474 346 344
============== ============== ==========
7
ASSOCIATED BRITISH ENGINEERING PLC
GROUP INTERIM CASH FLOW STATEMENT (continued)
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
CASH FLOW FROM OPERATING ACTIVITIES Six months Six months Period
to to to
30 September 30 September 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
Loss before taxation (342) (377) (582)
Adjustments for:
Depreciation 33 31 86
Interest income - (9) -
Finance expense 4 19 57
Foreign exchange difference - (23) 2
Pension scheme interest expense - - 36
Cash paid in excess of current pensions
service cost - - (116)
Profit on disposal of equipment (1) - (2)
Profit on disposal of Available for (58) - -
Sale investments
Changes in working capital:
Decrease/(increase) in inventories 29 (13) 295
Decrease/(increase) in trade and
other receivables 299 299 (5)
Increase/(decrease) in payables 28 (69) (27)
-------------- -------------- ----------
(8) (142) (256)
Taxes paid - - -
Cash used in operations (8) (142) (256)
============== ============== ==========
8
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PREPARATION
The company is incorporated in the United Kingdom under the
Companies Act 2006.
This unaudited Group Interim Report has been prepared in
accordance with IAS 34 Interim Financial Reporting and the
disclosure requirements of the Listing Rules. The policies set out
below have been consistently applied to all periods presented.
This Group Interim Report is not audited.
The results for the period ended 31 March 2018 have been
extracted from the statutory consolidated financial statements of
Associated British Engineering Plc, which are prepared in
accordance with IFRS, as adopted by the EU.
NEW AND AMED STANDARDS ADOPTED BY THE GROUP
The following standards became applicable for the current
reporting period:
-- IFRS 9 Financial Instruments, and
-- IFRS 15 Revenue from Contracts with Customers.
The adoption of these standards has had no material impact on
the financial statements of the Group, except as follows:
-- IFRS 9 Simplifies financial instrument classifications and
hedge accounting rules as well as amending the impairment
requirement for loans.
-- IFRS 15 is effective for annual periods beginning on or after
1 January 2018 and replaces all existing revenue requirements in
IFRS. The core principle is that revenue will be recognised at an
amount reflecting the consideration to which the Company expects to
be entitled in exchange for transferring goods and services to a
customer. It may have an impact on revenue recognition and related
disclosures.
GOING CONCERN
The financial statements have been prepared on the going concern
basis. There have been no changes to accounting policies in the 6
month period to 30 September 2018. Based on the group's budgets and
cash forecasts, the Board considers that the group has sufficient
resources to meet all necessary outgoings and to enable it to
continue in operational existence for the foreseeable future.
BASIS OF CONSOLIDATION
The Group Interim Report incorporates the financial statements
of Associated British Engineering Plc and its subsidiary
undertakings to 30 September each year. All inter-company balances
and transactions have been eliminated in full. The Group Interim
Report includes the results of subsidiaries acquired or disposed of
during the year from or to the effective date of acquisition or
disposal.
BUSINESS COMBINATIONS
Acquisitions of businesses are accounted for using the
acquisition method. The consideration transferred in a business
combination is measured at fair value, which is calculated as the
sum of the acquisition-date fair values of the assets transferred
by the Group, liabilities incurred by the Group to the former
owners of the acquiree and the equity interests issued by the Group
in exchange for control of the acquiree. Acquisition-related costs
are generally recognised in profit or loss as incurred.
9
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT (continued)
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
BUSINESS COMBINATIONS (continued)
At the acquisition date, the identifiable assets acquired and
the liabilities assumed are recognised at their fair value, except
that:
-- deferred tax assets or liabilities, and assets or liabilities
related to employee benefit arrangements are recognised and
measured in accordance with IAS 12 and IAS 19 respectively;
-- liabilities or equity instruments related to share-based
payment arrangements of the acquiree or share-based payment
arrangements of the Group entered into to replace share-based
payment arrangements of the acquiree are measured in accordance
with IFRS 2 Share-based Payment at the acquisition date; and
-- assets that are classified as held for sale in accordance
with IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations are measured in accordance with the Standard.
Goodwill is measured in the excess of the sum of the
consideration transferred, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer's
previously held equity interest in the acquiree (if any) over the
net of the acquisition-date amounts of the identifiable assets
acquired and the liabilities assumed. If, after reassessment, the
net of the acquisition-date amounts of the identifiable assets
acquired and liabilities assumed exceeds the sum of the
consideration transferred, the amount of any non-controlling
interests in the acquiree and the fair value of the acquirer's
previously held interest in the acquiree (if any), the excess is
recognised immediately in profit or loss as a bargain purchase
gain.
Non-controlling interests that are present ownership interests
and entitle their holders to a proportionate share of the entity's
net assets in the event of liquidation may be initially measured
either at fair value or at the non-controlling interests'
proportionate share of the recognised amounts of the acquiree's
identifiable net assets. The choice of measurement basis is made on
a transaction-by-transaction basis.
REVENUE RECOGNITION
Revenue is measured at the fair value of the consideration
receivable by the Group for goods supplied and services provided,
excluding value added tax and trade discounts. Revenue from the
sale of spare parts is recognised when the goods are dispatched or,
if under a bill and hold arrangement, when they are available for
despatch to a specific customer. Revenue from the sale of engines
is recognised in accordance with the performance of contractual
terms and specifically when the engines have been satisfactorily
tested in accordance with contractual terms. Revenue from servicing
and repair work is recognised when the work is completed.
ACCOUNTING ESTIMATES AND JUDGEMENTS
Management are required, in accordance with IFRS, to exercise
judgement and to make estimates and assumptions regarding the
application of accounting policies and the resulting effect on
reported amounts of assets, liabilities, income, and expenses.
These estimates and assumptions are based on historical experience
and a review of current conditions prevailing at the time but
actual results may differ from these estimates. Any such revision
is recognised in the financial statements in the period in which
the change in circumstance is detected.
Accounting Judgements
The key areas where management have exercised judgement in the
period, and the thought process undertaken, are as follows:
10
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT (continued)
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
Pension Scheme
The Directors are in regular contact with the Trustees of the
pension scheme in connection with the following areas where
judgement is exercised: the assumptions underpinning the actuarial
valuation, continued negotiations regarding the pension scheme and
in relation to the payment plan.
The Directors then assess the relevant estimates and assumptions
made to ensure that where possible all statutory obligations are
met. In evaluating the assumptions underpinning the actuarial
valuation the Directors have sought the professional advice of a
firm of actuaries who prepare the valuation according to certain
industry standards and norms.
Deferred taxation
Please refer to taxation policy below.
Available for Sale Financial Assets
British Polar Engines holding in SalvaRx was 2.13% (September
2017: 2.36%). The directors have judged that this holding does not
give the group 'significant influence' over SalvaRx Group PLC, and
so this investment has not been accounted for as an associate in
these financial statements.
Accounting Estimates
The accounting estimate having an impact on carrying amounts of
assets and liabilities in the reporting period is as follows:
Inventories
Inventories held by the Group consist of raw material (mainly
components), work in progress (manufactured engine parts), and
finished goods (both purchased and manufactured engine parts). A
specific provision is made, on a 100% basis, for all stock lines
that are obsolete or slow moving for periods in excess of four
years. A general provision is made of between 5% and 100% over all
stock lines that have not moved for more than one year.
The directors review their assumptions and accounting estimates,
along with the accounting policies adopted in preparing these
financial statements, on a regular basis and recognise any change
in the period
in which circumstances vary.
Provision for doubtful debts
At the balance sheet date, each subsidiary evaluates the
collectability of trade receivables and records provisions for
doubtful debts based on experience including comparisons of the
relative age of accounts and consideration of actual write-off
history. The actual level of debt collected may differ from the
estimated levels of recovery and could impact future operating
results positively or negatively.
INVENTORIES AND IMPAIRMENT OF INVENTORIES
Inventories of raw materials, work in progress, and finished
goods are valued at the lower of cost and net realisable value.
Work in progress and finished goods include an appropriate
allocation of overheads.
Cost is calculated on a first in, first out basis. Net
realisable value is the estimated selling price in the normal
course of business, less estimated costs of completion and
provision is made for obsolete, slow moving and defective
inventories.
11
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT (continued)
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
LEASED ASSETS
Leases of property, plant and equipment, where the Group has
substantially all the risks and rewards of ownership, are
classified as finance leases. Assets held under finance leases are
capitalised at lease inception at the lower of the asset's fair
value and the present value of the minimum lease payments.
Obligations related to finance leases, net of finance charges in
respect of future periods, are included as appropriate within
borrowings. The interest element of the finance cost is charged to
the income statement over the life of the lease so as to produce a
constant periodic rate of interest on the remaining balance of the
liability for each period. The property, plant or equipment is
depreciated on the same basis as owned plant and equipment or over
the life of the lease, if shorter.
Leases where the lessor retains substantially all the risks and
rewards of ownership are classified as operating leases. Operating
lease rentals (net of any related lease incentives) are charged
against profit on a straight line basis over the period of the
lease.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less
deprecation and any impairment in value. Freehold land is not
depreciated. Depreciation is calculated to write down the cost of
all property, plant and equipment, less its residual value, by
annual instalments over their expected useful lives on the
following basis:
Freehold buildings 5 per cent
Plant and machinery 7 1/2 - 331/3 per cent
These useful lives and residual values are reviewed in each
financial period.
Assets held under finance leases are depreciated over their
expected useful lives on the same basis as owned assets or, where
shorter, over the term of the relevant lease. The gain or loss
arising on the disposal or retirement of an asset is determined as
the difference between the sales proceeds and the carrying amount
of the asset and is recognised as income.
The carrying values of plant and machinery are reviewed for
impairment when events or changes in circumstances indicate the
carrying value may not be recoverable. If any such indication
exists, and where the carrying values exceed the estimated
recoverable amount, the assets or cash generating units are written
down to their recoverable amounts.
TAXATION
The tax expense represents the sum of the tax currently payable
and deferred tax.
The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the
income statement because it excludes items of income or expense
that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Group's
liability for current tax is calculated using tax rates that have
been enacted or substantively enacted by the balance sheet
date.
Deferred tax is provided in full, using the liability method, on
temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated
financial statements. The deferred tax is not accounted for if it
arises from initial recognition of an asset or liability in a
transaction, other than a business combination, that at the time of
the transaction affects neither accounting nor taxable profit nor
loss. Deferred tax is determined using tax rates (and laws) that
have been enacted or substantially enacted by the balance sheet
date and are expected to apply when the related deferred tax asset
is realised or the deferred tax liability is settled.
12
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT (continued)
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (continued)
TAXATION (continued)
Deferred tax assets are recognised to the extent that it is
probable that future taxable profit will be available against which
the temporary differences can be utilised.
FOREIGN CURRENCIES
The functional and presentational currency of the parent company
and its subsidiaries is UK Pounds Sterling, rounded to the nearest
thousands. Transactions in currencies other than the functional
currency are translated at the rate ruling at the date of the
transaction. At each balance sheet date, monetary assets and
liabilities denominated in foreign currencies are translated at the
rate of exchange ruling at the balance sheet date. Any gains or
losses arising from the transactions are taken to the income
statement.
RETIREMENT BENEFIT COSTS
For defined benefit retirement schemes, the cost of providing
benefits is determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at each balance sheet date.
Actuarial gains and losses are recognised in full in the period in
which they occur. They are recognised outside profit or loss and
presented in the Group statement of comprehensive income.
Past service cost is recognised immediately to the extent that
the benefits are already vested, and otherwise is amortised on a
straight-line basis over the average period until the benefits
become vested.
The retirement benefit obligation recognised in the balance
sheet represents the present value of the defined benefit
obligation as adjusted for unrecognised past service cost, and as
reduced by the fair value of scheme assets. Any asset resulting
from this calculation is limited to cumulative unrecognised past
service cost, plus the present value of available refunds and
reductions in future contributions to the plan.
Actuarial gains and losses, which represent differences between
the expected and actuarial returns on the plan assets and the
effect of changes in actuarial assumptions, are recognised in the
statement of other comprehensive income in the period in which they
occur.
Pension payments to the group's defined contribution schemes are
charged to the income statement as they arise.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the balance sheet comprise cash at
bank and in hand and short term deposits with a maturity of three
months or less which are subject to an insignificant risk of
changes in value.
FINANCIAL INSTRUMENTS
Financial liabilities and equity instruments are classified
according to the substance of the contractual arrangements entered
into.
Where the contractual obligations of financial instruments
(including share capital) are equivalent to a similar debt
instrument, those financial instruments are classed as financial
liabilities and are presented as such in the balance sheet. Finance
costs and gains or losses relating to financial liabilities are
included in the income statement. Finance costs are calculated so
as to produce a constant rate of charge on the outstanding
liability.
Where none of the contractual terms of share capital meet the
definition of a financial liability then this is classed as an
equity instrument. Dividends and distributions relating to equity
instruments are debited direct to equity.
13
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT (continued)
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (continued)
FINANCIAL INSTRUMENTS (continued)
Trade and other receivables
Trade and other receivables are originally recognised at fair
value. Subsequent measurement is at amortised cost using the
effective interest rate method. A provision against trade
receivables is made when there is objective evidence that the group
will not be able to collect all amounts due to it in accordance
with the original terms of those receivables.
Trade and other payables
Trade and other payables are originally recognised at fair
value, net of transaction costs. Subsequent measurement is at
amortised cost using the effective interest rate method.
Investments in securities
Investments are recognised and derecognised on a trade date
where a purchase or sale of an investment is under a contract whose
terms require delivery of the investment within the timeframe
established by the market concerned, and are initially measured at
fair value, with all transaction costs being written off to the
income statement as incurred.
Investments are classified as available for sale and are
measured at subsequent reporting dates at fair value. Gains and
losses arising from changes in fair value of available for sale
financial assets are included in other comprehensive income for the
period. When the asset is disposed of or deemed to be impaired, the
cumulative gain or loss is reclassified from equity reserve to
profit or loss.
IMPAIRMENT OF TANGIBLE ASSETS
At each balance sheet date, the Group reviews the carrying
amounts of its tangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss
(if any). Where the asset does not generate cash flows that are
independent from other assets, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to
sell and value in use. In assessing value in use the estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset for
which the estimates of future cash flows have not been adjusted. If
the recoverable amount of an asset (or cash-generating unit) is
estimated to be less than its carrying amount, the carrying amount
of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised as an expense
immediately, unless the relevant asset is carried at a revalued
amount, in which case the impairment loss is treated as a
revaluation decrease.
Where an impairment loss subsequently reverses, the carrying
amount of the asset (or cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the
increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised
for the asset (or cash-generating unit) in prior years.
EQUITY AND RESERVES
Share capital represents the nominal value of shares that have
been issued except for the preference shares classified as
debt.
Deferred shares represent shares arising from the sub-division
of ordinary shares of GBP2.
Share premium includes any premiums received on issue of share
capital. Any transaction costs associated with the issuing of
shares are deducted from share premium, net of any related income
tax benefits.
14
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT (continued)
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (continued)
EQUITY AND RESERVES (continued)
Retained earnings include all current and prior period retained
profits and losses.
Other reserves relate to movements not classified in any of the
reserves detailed above.
All transactions with owners of the parent are recorded
separately within equity.
SEGMENTAL REPORTING
The standard requires financial information to be disclosed in
the financial statements in the same format in which it is
disclosed to the chief operating decision-maker. The chief
decision-maker has been identified as the Board, at which level
strategic decisions are made.
2. SEGMENTAL ANALYSIS
Six months Six months Period
to to to
30 September 30 September 31 March
2018 2017 2018
GBP'000 GBP'000 GBP'000
United Kingdom 255 339 936
Europe 97 74 138
Far East and Australasia 41 59 64
Africa 74 39 176
North and South America 31 147 201
Middle East - 8 88
498 666 1,603
============== ============== ==========
All of the above revenue arises from diesel, related engineering
activities and aluminium trading. All revenue originates in the
United Kingdom.
In the periods detailed above all of the assets held by the
group were located in the United Kingdom and all capital
expenditure was incurred within the United Kingdom.
Operating segments
The following segment information has been prepared in
accordance with IFRS 8, "Operating Segments" which defines
requirements for the disclosure of financial information of an
entity's operating segments.
The Board consider the Group on an individual company basis.
Reports by individual companies are used by the chief
decision-makers in the Group. Significant operating segments are
Associated British Engineering Plc, British Polar Engines Limited
and Akoris Trading Limited.
The Group's operations are located in the United Kingdom. Any
transactions between business units are on normal commercial terms
and conditions.
British Polar Engines Limited's activities consist of the
manufacture and supply of diesel engines and spare parts for diesel
engines together with associated repair work.
Akoris Trading Limited did not carry out trading activity in the
period.
Associated British Engineering Plc is the group holding
company.
15
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT (continued)
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
2 SEGMENTAL ANALYSIS (continued)
Associated
British
Engineering British Akoris
PLC Polar Trading Consolidated
Engines Ltd
Ltd
GBP'000 GBP'000 GBP'000
Six months to 30 September
2018
External sales - 498 - 498
Segment result (PBIT) (68) (270) 1 (337)
------------- ---------- ---------- ---------------
Net finance expense (5)
Taxation -
Loss after tax (342)
===============
Other information
Capital additions - 2 - 2
Balance sheet
Segment assets 101 2,934 16 3,051
============= ========== ========== ===============
Six months to 30 September
2017
External sales - 666 - 666
Segment result (PBIT) (87) (285) (1) (373)
------------- ---------- ---------- ---------------
Net finance expenses (4)
Taxation -
Profit after tax (377)
===============
Other information
Capital additions - - - -
Balance sheet
Segment assets 137 2,393 30 2,560
============= ========== ========== ===============
There was two customers who contributed more than 10% of the
total group revenue for the six months ending 30 September 2018
(2017: two customers).
16
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT (continued)
FOR THE SIX MONTHSED 30 SEPTEMBER 2018
3. PRINCIPAL RISKS AND UNCERTAINTIES
In light of the industry in which the trading subsidiaries
operate, there are a number of risks and uncertainties which could
have an impact on the performance of the Group for the remaining
six months of the year.
The Directors have considered the principal risks and
uncertainties relating to its future business which might affect
the financial performance of the Group in 2018. The Group continues
to be exposed to the principal risks and uncertainties as described
on page 8 of the 2018 Annual Report and Accounts. A copy of the
2018 Annual Report and Accounts is available on the Company's
website.
The principal risks currently facing the Group are set out below
but are not arranged in order of relative impact or
probability:
-- Dependency on key markets;
-- Timing and renewal of key contracts;
-- Foreign exchange risk;
-- Recruitment and retention of key employees;
-- Identification of acquisitions that fit the Group's strategy;
-- Compliance with laws and regulations
The Directors meet on a regular basis to discuss these risks and
uncertainties and appropriate actions are taken to mitigate these
risks and to develop suitable strategies to protect the long term
performance of the Group.
17
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR BDBDBSSXBGIG
(END) Dow Jones Newswires
November 30, 2018 09:30 ET (14:30 GMT)
Associated British Engin... (LSE:ASBE)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Associated British Engin... (LSE:ASBE)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
