REG-Electrocomponents Half Yearly Report - Part 2
Released: 13/11/2009
Part 2 : For preceding part double-click [nRn1M4478C]
Share premium account 38.7 38.7 38.7
Retained earnings 182.5 172.6 192.5
Cumulative translation reserve 20.0 13.6 36.7
Other reserves (6.1) (3.6) (8.6)
Equity attributable to the equity shareholders of the 278.6 264.8 302.8
parent company
Condensed Consolidated Cash Flow Statement
Note 6 months 6 months Year to
to to 31.3.2009
30.9.2009 30.9.2008
£m £m £m
Cash flows from operating activities
Profit before tax 24.8 59.2 96.5
Depreciation and other amortisation 13.3 13.1 27.3
Share based payments charge 1.0 1.0 1.2
Finance income and expense (net) 2.4 3.2 7.0
Non-recurring non cash pension changes 2 - (17.5) (16.7)
Non cash movement on investment in associate - (0.1) (0.1)
Operating cash flow before changes in working capital, 41.5 58.9 115.2
interest and taxes
Decrease(increase) in inventories 4.8 (12.2) 3.4
Decrease in trade and other receivables 10.2 5.6 28.0
Increase (decrease) in trade and other payables 3.8 5.7 (25.2)
Cash generated from operations 60.3 58.0 121.4
Interest received 0.8 3.0 4.8
Interest paid (2.7) (7.7) (13.5)
Income tax paid (9.5) (12.0) (22.9)
Net cash from operating activities 48.9 41.3 89.8
Cash flows from investing activities
Capital expenditure and financial investment (6.2) (2.8) (12.1)
Proceeds from sale of property, plant and equipment - - 0.3
Net cash used in investing activities (6.2) (2.8) (11.8)
Free cash flow 42.7 38.5 78.0
Cash flows from financing activities
New bank loans - 179.3 143.1
Loans repaid (12.1) (170.6) (171.0)
Equity dividends paid 5 (26.1) (54.8) (76.6)
Net cash used in financing activities (38.2) (46.1) (104.5)
Net increase(decrease) in cash and cash equivalents 4.5 (7.6) (26.5)
Cash and cash equivalents at the beginning of the period 0.8 27.2 27.2
Effects of exchange rates on cash 0.2 (0.2) 0.1
Cash and cash equivalents at the end of the period 6 5.5 19.4 0.8
Condensed Consolidated Statement of Changes in Equity
Share Share Hedging Own Cumulative Retained Total
capital Premium reserve shares translation earnings
account held
£m £m £m £m £m £m £m
At 1 April 2009 43.5 38.7 (6.9) (1.7) 36.7 192.5 302.8
Profit for the period - - - - - 17.1 17.1
Foreign exchange translation differences - - - - (16.5) - (16.5)
Actuarial (loss) on defined benefit pension schemes - - - - - (2.8) (2.8)
Gain on cash flow hedges - - 3.3 - - - 3.3
Taxation relating to components of other comprehensive - - (0.9) - (0.2) 0.8 (0.3)
income
Total comprehensive income - - 2.4 - (16.7) 15.1 0.8
Share based payments - - - - - 1.0 1.0
Dividends paid - - - - - (26.1) (26.1)
Fair value of derecognised cash flow hedges - - 0.2 - - - 0.2
Related tax movements - - (0.1) - - - (0.1)
At 30 September 2009 43.5 38.7 (4.4) (1.7) 20.0 182.5 278.6
At 1 April 2008 43.5 38.7 (7.6) (1.7) 3.9 205.0 281.8
Profit for the period - - - - - 40.8 40.8
Foreign exchange translation differences - - - - 9.7 - 9.7
Actuarial (loss) on defined benefit pension schemes - - - - - (26.9) (26.9)
Gain on cash flow hedges - - 7.9 - - - 7.9
Taxation relating to components of other comprehensive - - (2.2) - - 7.5 5.3
income
Total comprehensive income - - 5.7 - 9.7 21.4 36.8
Share based payments - - - - - 1.0 1.0
Dividends paid - - - - - (54.8) (54.8)
At 30 September 2008 43.5 38.7 (1.9) (1.7) 13.6 172.6 264.8
Condensed Consolidated Statement of Changes in Equity (continued)
Share Share Hedging Own Cumulative Retained Total
capital Premium reserve shares translation earnings
account held
£m £m £m £m £m £m £m
At 1 April 2008 43.5 38.7 (7.6) (1.7) 3.9 205.0 281.8
Profit for the period - - - - - 66.2 66.2
Foreign exchange translation differences - - - - 34.8 - 34.8
Actuarial (loss) on defined benefit pension schemes - - - - - (4.4) (4.4)
(Loss) on cash flow hedges - - (0.4) - - - (0.4)
Taxation relating to components of other comprehensive - - (0.2) - (2.0) 1.1 (1.1)
income
Total comprehensive income - - (0.6) - 32.8 62.9 95.1
Share based payments - - - - - 1.2 1.2
Dividends paid - - - - - (76.6) (76.6)
Fair value of derecognised cash flow hedges - - 1.8 - - - 1.8
Related tax movements - - (0.5) - - - (0.5)
At 31 March 2009 43.5 38.7 (6.9) (1.7) 36.7 192.5 302.8
BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES
Electrocomponents plc (the "Company") is a company domiciled in the UK. The
condensed set of financial statements as at, and for, the six months ended 30
September 2009 comprises the Company and its subsidiaries (together referred to
as the "Group") and the Group's interest in a jointly controlled entity.
The Group financial statements as at, and for, the year ended 31 March 2009 are
available upon request from the Company's registered office at International
Management Centre, 8050 Oxford Business Park North, Oxford, OX4 2HW.
The comparative figures for the financial year ended 31 March 2009 are not the
Company's statutory accounts for that financial year. Those accounts have been
reported on by the Company's auditors and delivered to the registrar of
companies. The report of the auditors was (i) unqualified, (ii) did not include
a reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report, and (iii) did not contain a statement
under section 237(2) or (3) of the Companies Act 1985.
Going concern
After making enquiries, the directors have a reasonable expectation that the
Company has adequate resources to continue in operational existence for the
foreseeable future. For this reason they continue to adopt the going concern
basis in preparing the financial statements. The financial risk management
objectives and policies of the Company and the exposure of the Company to price
risk, credit risk, liquidity risk and cash flow risk are discussed in note 20 of
the Annual Report for the year ended 31 March 2009.
Statement of compliance
Except as stated below, the condensed set of financial statements included in
this half-yearly financial report has been prepared on the basis of the
accounting policies set out in the 2009 Annual Report and Accounts, which were
prepared in accordance with International Financial Reporting Standards as
adopted by the EU (IFRS), and International Accounting Standard (IAS) 34 Interim
Financial Reporting as adopted by the EU. The condensed set of financial
statements do not include all of the information required for full annual
financial statements, and should be read in conjunction with the Group financial
statements as at, and for, the year ended 31 March 2009.
This condensed set of financial statements was approved by the Board of
Directors on 13 November 2009.
Significant accounting policies
The accounting policies applied by the Group in these condensed consolidated
financial statements are the same as those that applied to the consolidated
financial statements of the Group for the year ended 31 March 2009 with the
following exceptions:
* IFRS 8 Operating Segments has been adopted. Under IFRS 8, reportable segments
are determined on thebasis of those segments whose operating results are
regularly reviewed by theGroup Chief Executive and the senior management team
(the Group Executive Committee). These operating results are prepared on a basis
that excludes items considered to be one-off in nature, i.e. those reported
below headline profit. Note 1 of the condensed consolidated financial statements
sets out the Group's reportable segments and sets out reconciliations between
these and the results reported in the income statement and balance sheet. There
has been no impact on the results or net assets of the Group.
* IAS 1 Presentation of Financial Statements - Revised. This has resulted in a
revision to the Group's Primary Statements. This standard has not affected the
results or net assets of the Group.
* IFRS 2 (amendment) Share based payments. The adoption of this standard has
had no significant impact on the net assets or results of the Group.
* IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction has been adopted with effect from 1 April
2008. IFRIC 14 requires that, where the Group is committed tomaking future
contributions to post-retirement schemes in respect of past service, and those
contributions willresult in an unrecognisable surplus, a liability for the
future contributions should be recognised. The adoption of this interpretation
has had no impact on the net assets or results of the Group.
Estimates and judgements
The preparation of a condensed set of financial statements requires management
to make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
The significant judgements made by management in applying the Group's accounting
policies and the key sources of uncertainty were the same as those that applied
to the Group financial statements as at 31 March 2009.
Notes to the condensed set of financial statements
1 Segmental reporting
In accordance with IFRS 8 Operating Segments, management has determined the
operating segments are based upon internal management reports reviewed by the
Group Chief Executive and the senior management team (the Group Executive
Committee) in order to assess performance and allocate resources.
The Group is managed in the following regions - United Kingdom, Continental
Europe, North America and Asia Pacific. United Kingdom comprises local trading
operations as well as exports to the Distributors where the Group does not have
a local Operating Company. Continental Europe comprises trading operations in
France, Germany, Italy, Austria, Scandinavia (Denmark, Norway, Sweden), Republic
of Ireland, Spain and Benelux. Asia Pacific comprises trading operations in
Japan, Australia, Chile, India, New Zealand, Singapore, Malaysia, South Africa,
Philippines, Thailand, Hong Kong and China. North America comprises trading
operations in the United States of America and Canada.
6 months 6 months Year to
to to 31.3.2009
30.9.2009 30.9.2008
£m £m £m
Revenue by geographic destination
United Kingdom 144.3 167.7 323.9
Continental Europe 158.5 171.9 350.4
North America 87.6 90.0 185.2
Asia Pacific 56.8 58.5 115.1
447.2 488.1 974.6
Revenue by geographic origin
United Kingdom 150.8 175.6 339.3
Continental Europe 156.6 169.9 346.7
North America 88.3 90.9 186.6
Asia Pacific 51.5 51.7 102.0
447.2 488.1 974.6
Headlinecontribution
United Kingdom 37.4 47.9 93.1
Continental Europe 29.9 32.9 75.9
North America 10.3 13.2 24.3
Asia Pacific 3.0 5.5 6.9
Headline contribution 80.6 99.5 200.2
Reconciliation of headlinecontribution to profit before tax
Headline contribution 80.6 99.5 200.2
Groupwide Process costs (53.4) (54.1) (106.6)
Net financial expense (2.4) (3.2) (7.0)
Headline profit before tax 24.8 42.2 86.6
Pension changes/reorganisation (net credit) - 17.0 9.9
Profit before tax 24.8 59.2 96.5
1 Segmental reporting (continued)
30.9.2009 30.9.2008 31.3.2009
£m £m £m
Segment assets
United Kingdom 218.3 244.0 230.0
Continental Europe 139.4 139.6 151.5
North America 237.8 223.8 266.7
Asia Pacific 59.0 57.1 59.4
Segmental assets 654.5 664.5 707.6
Unallocated assets
Cash at bank and in hand 8.5 24.9 2.0
Deferred tax assets 11.1 14.6 10.7
Income tax asset 1.7 2.2 1.1
Total assets 675.8 706.2 721.4
30.9.2009 30.9.2008 31.3.2009
£m £m £m
Segment liabilities
United Kingdom 86.0 109.6 80.2
Continental Europe 52.9 53.7 58.4
North America 13.9 14.0 10.6
Asia Pacific 15.9 13.5 17.7
Segmental liabilities 168.7 190.8 166.9
Unallocated liabilities
Income tax 10.7 16.7 15.2
Deferred tax liabilities 33.1 28.2 31.3
Loans and overdrafts 184.7 205.7 205.2
Total liabilities 397.2 441.4 418.6
2 Pension changes/reorganisation (net credit)
Pension changes/reorganisation (net credit) arising during the period are as
follows:
6 months 6 months Year to
to to 31.3.2009
30.9.2009 30.9.2008
£m £m £m
Redundancy costs - 0.2 6.6
Pension scheme changes - (17.5) (16.7)
Other initiatives - 0.3 0.2
- (17.0) (9.9)
The (net credit) is disclosed within the income statement as follows:
6 months 6 months Year to
to to 31.3.2009
30.9.2009 30.9.2008
£m £m £m
Distribution and marketing expenses - (15.8) (8.7)
Administrative expenses - (1.2) (1.2)
- (17.0) (9.9)
6 months 6 months Year to
to to 31.3.2009
30.9.2009 30.9.2008
3 Taxation on the profit of the Group £m £m £m
United Kingdom taxation 2.6 11.3 14.7
Overseas taxation 5.1 7.1 15.6
7.7 18.4 30.3
6 months 6 months Year to
to to 31.3.2009
30.9.2009 30.9.2008
4 Earnings per share £m £m £m
Profit for the period attributable to equity shareholders 17.1 40.8 66.2
Pension changes/reorganisation (net credit) - (17.0) (9.9)
Tax impact of pension changes/reorganisation (net credit) - 4.8 3.0
Headline profit on ordinary activities after taxation 17.1 28.6 59.3
Weighted average number of shares (millions) 435.1 435.0 435.0
Diluted weighted average number of shares (millions) 436.0 435.4 435.8
Headline basic earnings per share 3.9p 6.6p 13.6p
Basic earnings per share 3.9p 9.4p 15.2p
Headline diluted earnings per share 3.9p 6.6p 13.6p
Diluted earnings per share 3.9p 9.4p 15.2p
6 months 6 months Year to
to to 31.3.2009
30.9.2009 30.9.2008
5 Interim dividend £m £m £m
Amounts recognised and paid in the period:
Final dividend for the year ended 31 March 2009 - 6.0p 26.1 54.8 54.8
(2008: 12.6p)
Interim dividend for the year ended 31 March 2009 - - - 21.8
5.0p
26.1 54.8 76.6
Amounts determined after the balance sheet date:
Interim dividend for the year ending 31 March 2010 - 21.8
5.0p
The timetable for the payment of the interim dividend is:
Ex-dividend date 9 December 2009
Dividend record date 11 December 2009
Dividend payment date 15 January 2010
6 Cash and cash equivalents/analysis of movements in net debt
30.9.2009 30.9.2008 31.3.2009
Cash and cash equivalents £m £m £m
Bank balances 8.5 10.5 2.0
Call deposits and investments - 14.4 -
Cash and cash equivalents in the balance sheet 8.5 24.9 2.0
Bank overdrafts (3.0) (5.5) (1.2)
Cash and cash equivalents in the cash flow statement 5.5 19.4 0.8
Current instalments of loans (8.9) (6.0) (2.8)
Loans repayable after more than one year (172.8) (194.2) (201.2)
Net debt (176.2) (180.8) (203.2)
6 months 6 months Year to
to to 31.3.2009
30.9.2009 30.9.2008
Analysis of movements in net debt £m £m £m
Net debt at 1 April (203.2) (151.1) (151.1)
Free cash flow 42.7 38.5 78.0
Equity dividends paid (26.1) (54.8) (76.6)
New finance leases - (2.3) (2.3)
Translation differences 10.4 (11.1) (51.2)
Net debt at period end (176.2) (180.8) (203.2)
7 Principal exchange rates 6 months 6 months Year to
to to 31.3.2009
30.9.2009 30.9.2008
Average for the period
Euro 1.14 1.26 1.21
United States Dollar 1.60 1.93 1.72
30.9.2009 30.9.2008 31.3.2009
Period end
Euro 1.09 1.27 1.08
United States Dollar 1.60 1.78 1.43
INDEPENDENT REVIEW REPORT TO ELECTROCOMPONENTS PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2009 which comprises the condensed consolidated income statement,
condensed consolidated statement of comprehensive income, condensed consolidated
balance sheet, condensed consolidated cash flow statement and condensed
consolidated statement of changes in equity and the related explanatory notes.
We have read the other information contained in the half-yearly financial report
and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Services Authority
("the UK FSA"). Our review has been undertaken so that we might state to the
company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company for our review work, for
this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the DTR of the UK FSA.
As disclosed in the Basis of Preparation and Principal Accounting Policies, the
annual financial statements of the group are prepared in accordance with IFRSs
as adopted by the EU. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 September 2009 is not prepared, in all
material respects, in accordance with IAS 34 as adopted by the EU and the DTR of
the UK FSA.
Paul Sawdon
for and on behalf of KPMG Audit Plc
Chartered Accountants, London
13 November 2009
SAFE HARBOUR
This half-yearly financial report contains certain statements, statistics and
projections that are or may be forward-looking. The accuracy and completeness of
all such statements, including, without limitation, statements regarding the
future financial position, strategy, projected costs, plans and objectives for
the management of future operations of Electrocomponents plc and its
subsidiaries is not warranted or guaranteed. These statements typically contain
words such as "intends", "expects", "anticipates", "estimates" and words of
similar import. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future. Although Electrocomponents plc believes that the
expectations reflected in such statements are reasonable, no assurance can be
given that such expectations will prove to be correct. There are a number of
factors, which may be beyond the control of Electrocomponents plc, which could
cause actual results and developments to differ materially from those expressed
or implied by such forward-looking statements. Other than as required by
applicable law or the applicable rules of any exchange on which our securities
may be listed, Electrocomponents plc has no intention or obligation to update
forward-looking statements contained herein.
This information is provided by RNS
The company news service from the London Stock Exchange
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