TIDMCFYN
RNS Number : 2328U
Caffyns PLC
29 November 2013
HALF YEAR REPORT
for the half year ended 30 September 2013
Summary
Strong performance in the first half:
2013 2012**
GBP'000 GBP'000
Revenue 93,370 82,571
Underlying* profit before
tax 1,027 439
Profit before tax 727 314
Underlying* EBITDA 1,935 1,351
p p
Underlying* earnings per
share 33.5 13.4
Basic earnings per share 30.8 9.9
Interim dividend per ordinary
share 6.0 5.0
* Underlying results exclude items that have non-trading
attributes due to their size, nature or incidence.
** Restated to reflect the impact of the adoption of IAS 19
(2011).
Highlights
-- Underlying profit before tax up 134% to GBP1,027,000 (2012: GBP439,000)
-- Profit before tax up 132% to GBP727,000 (2012: GBP314,000)
-- Like for like new car unit sales up by 20.8%
-- Like for like used car unit sales up by 17.6%
-- Net cash generated by operating activities of GBP1.83m (2012: outflow GBP1.03m)
-- Underlying earnings per share increased to 33.5p (2012: 13.4p)
-- Basic earnings per share increased to 30.8p (2012: 9.9p)
-- Dividend per ordinary share increased to 6.0p (2012: 5.0p)
The Chief Executive, Simon Caffyn, commented:
"I am delighted that we have increased underlying profit before
tax to GBP1,027,000 from GBP439,000 last year, up 134%, and
increased underlying earnings per share to 33.5p from 13.4p. Our
new car unit sales in the half year were up by 20.8% and our used
car unit sales were up by 17.6%, both on a like for like
basis."
Enquiries:
Simon Caffyn, Chief
Caffyns plc Executive Tel: 01323 730201
Mark Harrison, Finance
Director
HeadLand Tom Gough Tel: 020 7367 5228
07717 896701
Interim Management Report
Summary
I am pleased to report that the Group has increased underlying
profit before tax in the six months to 30 September 2013 to
GBP1.03m, up from GBP0.44m last year. This increase follows the
successful completion of our restructuring programme in 2012 and
continued improvement in new and used car sales.
Revenue has increased by 13% to GBP93.4m from GBP82.6m.
Profit before tax is GBP727,000 compared to GBP314,000 (as
restated) last year. Last year's profit before tax has been
restated following the implementation of the amended accounting
standard IAS 19 "Employee benefits". This change is referred to
below in the section on "Pensions".
Basic earnings per share are 30.8p (2012: 9.9p, as restated) and
underlying earnings per share are 33.5p (2012: 13.4p, as
restated).
The net cash inflow from operating activities was GBP1.83m
(2012: outflow GBP1.03m).
Operating Review
New and Used Cars
-- Over the half year period, total UK new car registrations
rose by 12.6%. Within this, the private and small business sector
in which we operate rose by 19.5%. Our new unit sales are up by
20.8% on a like for like basis as we continue to outperform the
market.
-- Our used car unit sales in the period are up 17.6% on last year like for like.
Aftersales
-- The reduced new car market over the last three years has led
to a consequential decline in the number of one to three year old
cars in circulation. It is encouraging to see our aftersales
revenue rise by 1.8% on a like for like basis as compared to the
same period last year.
Operations
-- Work on the construction of our new Volkswagen dealership in
Worthing, which began in May 2013, is progressing on time and on
budget and the site is scheduled to open in February 2014.
-- The refurbishment and expansion of the showroom in our
Volkswagen dealership in Haywards Heath was completed in May
2013.
-- The freehold property we acquired in February 2013
immediately adjacent to our Land Rover dealership in Lewes,has been
refurbished as an aftersales facility and has delivered the
expected operating efficiencies.
-- We are now trading as a full Seat dealership in Tunbridge
Wells alongside our Skoda dealership and early sales are very
encouraging.
-- In Ashford, having agreed to continue our representation with
Vauxhall, the site is enjoying strong trading activity and improved
profitability.
-- Work on the construction of our new Skoda dealership in
Ashford, which began in August 2013, is progressing on plan towards
a scheduled opening at the end of December 2013.
Property
-- Capital expenditure in the six months was GBP2.74m (2012:
GBP0.57m), of which GBP1.60m was incurred on the new Volkswagen
dealership in Worthing, GBP0.34m on the refurbishment of the
Volkswagen dealership in Haywards Heath and GBP0.42m on the newly
acquired workshop facility in Lewes for Land Rover.
-- The refurbishment of the workshop facility in Lewes, acquired
in February 2013, adjacent to our new Land Rover showrooms, was
completed during the period with minimal disruption to trading. A
planning application for part of the site excess to requirements
has recently been lodged and it is intended to market this
development site for sale in due course.
-- Following the exchange of contracts to sell our freehold
property in Folkestone in May 2013, proceeds of GBP452,000 net of
costs of sale were subsequently received in August 2013.
-- On 14 November 2013, the Company announced the purchase of a
freehold site adjacent to its existing Volkswagen dealership in
Eastbourne, East Sussex, for GBP0.75m. The site of 0.77 acres
includes a commercial building of approximately 10,000 square feet.
When added to the Company's existing site of 1.3 acres, this
further site will enable the Company to increase the scale of its
sales and aftersales operations of this important site. Completion
will take place on 10 January 2014 and the consideration is payable
in cash.
Pensions
-- The IAS 19 net pension position at 30 September 2013 was a
deficit of GBP9.03m net of tax (GBP11.29m gross of tax) compared
with a deficit of GBP10.50m net of tax at 31 March 2013 (GBP13.64m
gross of tax). The lower deficit reflects the impact on liabilities
of an increase in the discount rate from 4.3% at 31 March 2013 to
4.4% at 30 September 2013 and lower inflation.
-- The Recovery Plan agreed with the trustees requires a cash
payment of GBP346,000 in the year to 31 March 2014, increasing by
3.4% per annum thereafter.
-- The amended accounting standard, IAS19 has been implemented
in the half year to 30 September 2013 by replacing the expected
return on assets with a return based upon the discount rate. This
has given rise to a charge in the half-year of GBP300,000. The net
credit shown in the Half Year Report for the period to 30 September
2012 was GBP29,000. Following implementation of the revised
standard, the charge for that period has been restated to
GBP169,000, reducing profit before tax by GBP198,000. However, the
net actuarial losses in the Consolidated Statement of Comprehensive
Income have also reduced by GBP198,000. Consequently, there are no
changes to balance sheets previously reported. The pension cost
under IAS 19, as in the previous year, continues to be charged as a
non-underlying cost.
People
-- I am very grateful for the dedication shown by our employees
during the period of significant change and it is encouraging to
see their efforts rewarded.
-- On 25 September we announced the appointment of Nigel Gourlay to the Board as an independent non-executive director. Andrew Goodburn retired from the Board on 25 October and I, and other members of the Board, would like to thank him for his valuable contribution over more than nine years' service.
Bank facilities
-- On 28 November 2013, the Company completed a GBP5m Term Loan
with Volkswagen Bank to assist in the funding of various property
developments, principally the new Volkswagen dealership in
Worthing. The loan is secured on certain freehold properties and is
repayable in equal instalments over ten years. Interest is payable
at 1.75% over Finance House Base Rate.
Dividend
-- The Board has decided to increase the interim dividend to
6.0p per Ordinary Share (2012: 5.0p per Ordinary Share). This will
be paid on 10 January 2013 to shareholders on the register at close
of business on 13 December 2013.
Current Trading and Outlook
-- The strategic and operational changes that we have made to
the Group are now delivering improved profits. Currently, the UK
Market is more buoyant than in other parts of Europe and, while our
new car order book is ahead of the same time last year, the outcome
for the full year will be dependent on the crucial month of March
2014.
Simon G M Caffyn
Chief Executive
Condensed Consolidated Statement of Financial Performance
for the half year ended 30 September 2013
Half year to Year ended 31
30 September March 2013
2012
Non-underlying
(note Underlying Total Underlying Total
Note Underlying 3) Total (as restated)* (as restated)* (as restated)* (as restated)*
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 93,370 - 93,370 74,684 82,571 150,847 164,965
Cost of sales (82,143) - (82,143) (65,221) (71,926) (131,969) (144,086)
Gross profit 11,227 - 11,227 9,463 10,645 18,878 20,879
Operating
expenses (9,741) (11) (9,752) (8,545) (10,480) (16,768) (20,245)
Operating profit 1,486 (11) 1,475 918 165 2,110 634
Other income
(net) 3 - - - - 800 - 1,718
Operating profit 1,486 (11) 1,475 918 965 2,110 2,352
Finance expense 4 (459) - (459) (479) (494) (892) (917)
Net finance
expense
on pension
scheme - (289) (289) - (157) - (317)
Net finance costs (459) (289) (748) (479) (651) (892) (1,234)
Profit before
taxation 1,027 (300) 727 439 314 1,218 1,118
Income tax
(expense)/credit 5 (97) 226 129 (67) (39) (186) (140)
Profit for the
period
from continuing
operations 930 (74) 856 372 275 1,032 978
Continuing
operations
earnings per
share
Basic 6 30.8p 9.9p 35.3p
Diluted 6 30.6p 9.6p 34.3p
Non GAAP measure
Underlying basic earnings
per share 6 33.5p 13.4p 37.3p
Underlying diluted
earnings per share 6 33.3p 13.0p 36.2p
*See note 2 for details of restatement
Condensed Consolidated Statement of Comprehensive Income
for the half year ended 30 September 2013
Half year Half year Year to
to to
30 September 30 September 31 March
2013 2012 2013
(as restated)* (as restated)*
GBP'000 GBP'000 GBP'000
Profit for the period 856 275 978
Other comprehensive income
Actuarial gains/(losses) recognised
in defined benefit pension scheme 2,468 (5,551) (7,439)
Deferred tax on actuarial gains/(losses) (494) 1,276 1,711
Adjustment recognised in the period
due to change in rate of corporation (409) - -
tax
Other comprehensive income, net
of tax 1,565 (4,275) (5,728)
Total comprehensive income for
the period 2,421 (4,000) (4,750)
*See note 2 for details of restatement
Condensed Consolidated Statement of Financial Position
at 30 September 2013
30 September 30 September 31 March 2013
2013 2012
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 33,363 27,468 31,073
Investment property 525 530 528
Goodwill 286 286 286
Deferred tax asset 969 1,409 1,743
Total non-current assets 35,143 29,693 33,630
Current assets
Inventories 25,224 21,124 25,650
Trade and other receivables 6,417 6,201 6,174
Cash and cash equivalents 21 576 1,159
Non-current assets held
for sale - 2,108 446
Total current assets 31,662 30,009 33,429
Total assets 66,805 59,702 67,059
Current liabilities
Interest bearing loans
and borrowings 3,114 2,393 3,500
Trade and other payables 26,005 20,370 25,658
Tax liabilities 208 208 208
Total current liabilities 29,327 22,971 29,366
Net current assets 2,335 7,038 4,063
Non-current liabilities
Interest bearing loans
and borrowings 7,500 7,500 7,500
Preference shares 1,237 1,237 1,237
Retirement benefit obligations 11,290 11,805 13,641
Total non-current liabilities 20,027 20,542 22,378
Total liabilities 49,354 43,513 51,744
Net assets 17,451 16,189 15,315
Equity
Share capital 1,439 1,439 1,439
Share premium account 272 272 272
Capital redemption reserve 282 282 282
Non-distributable reserve 2,390 2,390 2,390
Other reserve 4 108 120
Retained earnings 13,064 11,698 10,812
Total equity 17,451 16,189 15,315
Consolidated Statement of Changes in Equity
for the half year ended 30 September 2013
Capital
Share Share redemption Non-distributable Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2013 1,439 272 282 2,390 120 10,812 15,315
Total comprehensive
income
Profit for the period - - - - - 856 856
Other comprehensive
income - - - - - 1,565 1,565
Total comprehensive
income for the period - - - - - 2,421 2,421
Transactions with
owners:
Dividends - - - - - (195) (195)
Purchase of own
shares - - - - - (386) (386)
Issue of own shares-
SAYE scheme - - - - - 284 284
Share based payment - - - - 12 - 12
Share based payment
transfer - - - - (128) 128 -
At 30 September 2013 1,439 272 282 2,390 4 13,064 17,451
for the half year ended 30 September 2012
Capital Retained
Share Share redemption Non-distributable Other earnings Total
capital premium reserve reserve reserve (as restated)* (as restated)*
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April
2012 1,439 272 282 2,390 96 15,891 20,370
Total
comprehensive
income
Profit for the
period - - - - - 275 275
Other
comprehensive
income - - - - - (4,275) (4,275)
Total
comprehensive
income for
the period - - - - - (4,000) (4,000)
Transactions
with
owners:
Dividends - - - - - (193) (193)
Share based
payment - - - - 12 - 12
At 30
September
2012 1,439 272 282 2,390 108 11,698 16,189
*See note 2 for details of restatement
Consolidated Statement of Changes in Equity
for the year ended 31 March 2013
Capital Retained
Share Share redemption Non-distributable Other earnings Total
capital premium reserve reserve reserve (as restated)* (as restated)*
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2012 1,439 272 282 2,390 96 15,891 20,370
Total
comprehensive
income
Profit for the
period - - - - - 978 978
Other
comprehensive
income - - - - - (5,728) (5,728)
Total
comprehensive
income
for the year - - - - - (4,750) (4,750)
Transactions
with owners:
Dividends - - - - - (332) (332)
Issue of
shares -
SAYE
scheme - - - - - 3 3
Share-based
payment - - - - 24 - 24
At 31 March
2013 1,439 272 282 2,390 120 10,812 15,315
*See note 2 for details of restatement
Condensed Consolidated Cash Flow Statement
for the half year ended 30 September 2013
Half year Half year Year to
to to
30 September 30 September 31 March
2013 2012 2013
(as restated)* (as restated)*
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit before taxation 727 314 1,118
Adjustments for:
Net finance expense 748 651 1,234
Depreciation and amortisation 449 476 916
Change in retirement benefit obligations (172) (163) (375)
Impairment of property, plant and
equipment - - 178
Gain on disposal of property, plant
and equipment (3) (800) (1,896)
Share-based payments 12 12 24
Decrease/(increase) in inventories 426 4,598 (26)
(Increase)/decrease in trade and
other receivables (243) 511 546
Increase/(decrease) in payables 347 (6,131) (843)
Cash generated from/(used) by operations 2,291 (532) 876
Interest paid (459) (494) (917)
Net cash generated/(used) in operating
activities 1,832 (1,026) (41)
Investing activities
Proceeds on disposal of property,
plant and equipment (net of sale
costs) 452 1,164 2,896
Purchases of property, plant and
equipment (2,739) (565) (3,670)
Net cash used in investing activities (2,287) 599 (774)
Financing activities
Purchase of own shares (386) - -
Issue of shares - SAYE scheme 284 - 3
Dividends paid to shareholders (195) (193) (332)
Net cash used in financing activities (297) (193) (329)
Net decrease in cash and cash equivalents (752) (620) (1,144)
Cash and cash equivalents at beginning
of period (2,341) (1,197) (1,197)
Cash and cash equivalents at end
of period (3,093) (1,817) (2,341)
*See note 2 for details of restatement
Notes to the Set of Financial Information
for the half year ended 30 September 2013
1. GENERAL INFORMATION
Caffyns plc is a company domiciled in the United Kingdom. The
address of the registered office is Saffrons Rooms, Meads Road,
Eastbourne BN20 7DR.
These condensed consolidated interim financial statements for
the half year to 30 September 2013 and similarly for the half year
to 30 September 2012 are unaudited. They do not include all the
information required for full annual financial statements and
should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 March 2013.
The figures for the year ended 31 March 2013 have been extracted
from the statutory accounts, filed with the Registrar of Companies
on which the auditors gave an unqualified opinion and did not
contain statements under section 498(2) or (3) of the Companies Act
2006.
These statements have been reviewed by the Company's auditors
and a copy of their review report is set out at the end of these
statements.
These consolidated interim financial statements were approved by
the Directors on 29 November 2013.
2. ACCOUNTING POLICIES
The annual financial statements of Caffyns plc are prepared in
accordance with IFRSs as adopted by the European Union. The set of
financial statements included in this half yearly financial report
has been prepared in accordance with International Accounting
Standard 34 'Interim Financial Reporting' as adopted by the
European Union. This interim financial report has been prepared
under the historical cost convention as modified by the fair value
accounting of defined benefit schemes and share based payment
transactions. As required by the Disclosure and Transparency Rules
of the Financial Services Authority, this set of financial
statements has been prepared in accordance with the accounting
policies set out in the Annual Report for the year ended 31 March
2013 apart from in relation to the amendments required by IAS 19
"Employee Benefits". The principal amendment is the requirement to
calculate net interest income or expense using the discount rate
used to measure the defined benefit obligation. The new standard
requires retrospective application and impacts the Group's
Statement of Financial Performance and Statement of Comprehensive
Income as a result of the changes in assessing the return on
pension scheme assets. A prior year restatement has been made to
reflect these changes as set out below.
Restatement
As a result of the amendments to IAS 19 "Employee Benefits", the
Group has changed its accounting policy with respect to determining
the income or expense related to its defined benefit pension
scheme. The standard prescribes that an interest expense or income
is calculated on the net defined benefit liability/(asset) by
applying the discount rate to the net defined benefit
liability/(asset). This replaces the interest expense on the
defined benefit obligation and the expected return on plan assets.
The revised standard requires retrospective application. The table
below reflects the adjustments made to the comparative amounts for
the period to 30 September 2012 and year ended 31 March 2013. The
associated tax has also been restated. All amounts subject to the
change are non-underlying in nature. There are no associated
changes to the balance sheets previously published. The
consolidated cash flow statement reflects the changes to the profit
before taxation and the adjustment for the net finance expense.
Consolidated Statement of Financial Performance Half year Year to
to 30 September 31 March
2012 2013
GBP'000 GBP'000
------------------------------------------------- ----------------- ---------
Increase in finance expense (157) (317)
Decrease in finance income (41) (87)
Decrease in income tax expense 46 93
------------------------------------------------- ----------------- ---------
Decrease in profit for the period (152) (311)
------------------------------------------------- ----------------- ---------
Decrease in basic earnings per share (pence) (5.5)p (11.3)p
------------------------------------------------- ----------------- ---------
Decrease in diluted earnings per share (pence) (5.3)p (10.9)p
------------------------------------------------- ----------------- ---------
Consolidated statement of comprehensive income
------------------------------------------------- ----------------- ---------
Other comprehensive income:
Decrease in defined benefit actuarial losses 198 404
Decrease in income tax income (46) (93)
------------------------------------------------- ----------------- ---------
Increase in other comprehensive income 152 311
------------------------------------------------- ----------------- ---------
There are a number of accounting standards that have become
effective in the current period. However, there is no material
impact upon the financial statements.
Segmental reporting
Based upon the management information reported to the Group's
chief operating decision maker, the Chief Executive, in the opinion
of the directors, the Group only has one reportable segment. There
are no major customers amounting to 10% or more of the Group's
revenue. All revenue and non-current assets derive from, or are
based in, the United Kingdom.
Basis of preparation: Going concern
The financial statements have been prepared on a going concern
basis which the directors consider appropriate for the reasons set
out below:
The Group meets its day to day working capital requirements
through short-term stocking loans and bank overdraft and
medium-term revolving credit facilities. The overdraft and
revolving credit facilities include certain covenant tests. The
failure of a covenant test would render these facilities repayable
on demand at the option of the lenders.
The directors have undertaken a detailed review of trading and
cash flow forecasts for a period in excess of one year from the
date of this Interim Management Report which projects that the
facility limits are not exceeded over the duration of the
forecasts. These forecasts have made assumptions in respect of
future trading conditions, particularly volumes and margins of new
and used car sales, aftersales and operational improvements
together with the timing of capital expenditure. The forecasts take
into account these factors to an extent which the directors
consider to be reasonable, based on the information that is
available to them at the time of approval of this financial
information. These forecasts indicate that the Group will be able
to operate within the financing facilities that are available to it
and meet the covenant tests with sufficient margin for reasonable
adverse movements in expected trading conditions.
The directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for the
foreseeable future. For those reasons, they continue to adopt the
going concern basis in preparing this Half Year Report.
3. NON-UNDERLYING ITEMS
Half year Half year Year to
to to
30 September 30 September 31 March
2013 2012 2013
(as restated)* (as restated)*
GBP'000 GBP'000 GBP'000
Impairment of property, plant
and equipment - - (178)
Net profit on disposal of property,
plant and equipment - 800 1,896
Other income (net) - 800 1,718
Losses incurred on closed businesses - (600) (1,067)
Redundancy costs - (156) (414)
Net finance income and service
cost on pension scheme (300) (169) (337)
Other costs (300) (925) (1,818)
Net costs before taxation (300) (125) (100)
The net financing return and service cost on pension obligations
in respect of the defined benefit scheme closed to future accrual
is presented as a non-underlying item due to the volatility of this
amount.
* Restated to reflect the impact of the adoption of IAS 19
(2011) (see note 2).
4. FINANCE EXPENSE
Half year Half year Year to
to to 31 March
30 September 30 September 2013
2013 2012 GBP'000
GBP'000 GBP'000
Interest payable on bank borrowings 161 189 329
Vehicle stocking plan interest 221 191 370
Financing costs amortised 26 63 116
Preference dividends 51 51 102
Total finance costs 459 494 917
Interest payable on bank borrowings is after capitalising
interest in additions to freehold properties of GBP20,000 (2012:
Nil) at a rate of 3.6%.
5. TAXATION
Half year Half year Year to
to to
30 September 30 September 31 March
2013 2012 2013
(as restated)* (as restated)*
GBP'000 GBP'000 GBP'000
Current UK corporation tax
Charge for the period - - -
Deferred tax
Origination and reversal of
timing differences (204) (81) (182)
Adjustment for change in rate
of corporation tax:
On normal trading 131 42 42
Non-underlying 202 - -
Total credit/(charge) 129 (39) (140)
Total tax credited/(charged)
in the Statement of Financial
Performance 129 39 (140)
The tax charge arises as follows:
On normal trading (97) (67) (186)
Non-underlying 226 28 46
Total credit/(charge) 129 (39) (140)
Taxation for the half year has been provided at the effective
rate of taxation of 23% (2012: 24%) expected to apply to the whole
year on ordinary trading. Tax on non-underlying items is provided
at the actual rate applicable. The UK corporation tax rate
reduction from 23% to 21% has been enacted and will be effective
from 1 April 2014 and a further reduction of 1% to 20% from 1 April
2015. The additional rate reductions were substantively enacted on
17 July 2013.
The adjustment to deferred tax arising on the change of rate
attributable to unrealised capital gains on freehold properties has
been treated as non-underlying.
* Restated to reflect the impact of the adoption of IAS 19
(2011) (see note 2).
6. EARNINGS PER SHARE
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period.
Treasury shares are treated as cancelled for the purposes of this
calculation.
The calculation of diluted earnings per share is based on the
basic earnings per share, adjusted to allow for the issue of shares
and the post-tax effect of dividends and/or interest, on the
assumed conversion of all dilutive options and other dilutive
potential ordinary shares.
Reconciliations of the earnings and the weighted average number
of shares used in the calculations are set out below.
Half year Half year Year to
to to
30 September 30 September 31 March
Basic 2013 2012 2013
GBP'000 GBP'000 GBP'000
(as restated)* (as restated)*
Profit before tax 727 314 1,118
Taxation 129 (39) (140)
Earnings 856 275 978
Basic earnings per share 30.8p 9.9p 35.3p
Diluted earnings per share 30.6p 9.6p 34.3p
Adjusted
Profit before tax 727 314 1,118
Adjustment: Non-underlying items
(note 3) 300 125 100
Underlying profit before tax 1,027 439 1,218
Taxation (97) (67) (186)
Underlying earnings 930 372 1,032
Underlying earnings per share 33.5p 13.4p 37.3p
Diluted earnings per share 33.3p 13.0p 36.2p
The number of fully paid ordinary shares in issue at the period
end was 2,754,881 (2012: 2,766,779). The weighted average shares in
issue for the purposes of the earnings per share calculation were
2,776,897 (2012: 2,766,779). The shares granted under the Company's
SAYE scheme are dilutive. The weighted average number of dilutive
shares under option at fair value was 18,107 (2012: 105,143) giving
a total diluted weighted average number of shares of 2,795,004
(2012: 2,871,922).
Reductions in the future rate of UK Corporation tax from 23% to
20% have been enacted. This change has affected the amount of
deferred tax as at 30 September 2013 by reducing the tax charge in
the Statement of Financial Performance in the half year by
GBP333,000 but increasing the charge in the Statement of
Comprehensive Income by GBP409,000. Basic earnings per share have
consequently been increased by 12.0p and underlying earnings per
share by 4.7p as a result of these changes.
The Directors consider that underlying earnings per share
figures provide a better measure of comparative performance.
* Restated to reflect the impact of the adoption of IAS 19
(2011) (see note 2).
7. DIVIDENDS
Ordinary shares of 50p each
The interim dividend proposed at the rate of 6.0p per share
(2012: 5.0p) is payable on 10 January 2014 to shareholders on the
register at the close of business on 13 December 2013. The shares
will be marked ex-dividend on 11 December 2013.
Preference shares
Preference dividends have been paid in October 2013. The next
preference dividends are payable in April 2014. The cost of the
preference dividends has been included within finance costs.
8. PENSIONS
The net liability for defined benefit obligations has decreased
from GBP13,641,000 at 31 March 2013 to GBP11,290,000 at 30
September 2013. The decrease of GBP2,351,000 comprises
contributions of GBP183,000 plus the net charge to the Statement of
Financial Performance of GBP300,000 and a net actuarial gain
credited to Reserves of GBP2,468,000. The net actuarial gain has
arisen principally due to increased bond yields, which determines
the discount rate used and, consequently, the value of the
liabilities over the period. The main assumptions subject to change
are the discount rate 4.3% (31 March 2013 - 4.4%) and the rate of
increase in inflation at 3.2 % (31 March 2012 - 3.3 %).
9. RELATED PARTY TRANSACTIONS
There have been no new related party transactions that have
taken place in the first six months of the current financial year
that have materially affected the financial position or performance
of the Group during that period and there have been no material
changes in the related party transactions described in the last
Annual Report that could do so.
10. RISKS AND UNCERTAINTIES
There are a number of potential risks and uncertainties which
could have a material impact on the Group's performance over the
remaining six months of the financial year and could cause actual
results to differ materially from expected and historical results.
The Board believes these risks and uncertainties to be consistent
with those disclosed in our latest Annual Report, including general
economic factors, their impact on the Group's defined benefit
pension scheme, liquidity and financing, manufacturers' dependency
and stability, used car prices and regulatory compliance.
11. RESPONSIBILITY STATEMENT
We confirm to the best of our knowledge:
a) the Half Year Report has been prepared in accordance with
IAS34 'Interim Financial Reporting';
b) the Half Year Report includes a fair review of the
information required by DTR 4.2.7R of the Disclosure and
Transparency Rules (indication of important events during the first
six months and their impact on the set of financial statements; and
a description of the principal risks and uncertainties for the
remaining six months of the year); and
c) the Half Year Report includes a fair review of the
information required by DTR 4.2.8R of the Disclosure and
Transparency Rules (disclosure of related parties' transactions and
changes therein).
By order of the Board
S G M Caffyn
Chief Executive
M S Harrison
Finance Director
29 November 2013
INDEPENDENT REVIEW REPORT
to Caffyns plc
Introduction
We have reviewed the condensed set of financial statements in
the Half Year Report for the six months ended 30 September 2013
which comprises the Condensed Consolidated Statement of Financial
Performance, the Condensed Consolidated Statement of Comprehensive
Income, the Condensed Consolidated Balance Sheet, the Consolidated
Statement of Changes in Equity, the Condensed Consolidated Cash
Flow Statement and the related 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's members, as a body,
in accordance with ISRE (UK and Ireland) 2410, 'Review of Interim
Financial Information performed by the Independent Auditor of the
Entity'. Our review work has been undertaken so that we might state
to the Company's members those matters we are required to state to
them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company and the Company's members as a
body, for our review work, for this report, or for the conclusion
we have formed.
Directors' responsibilities
The Half Year Report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for
preparing the Half Year Report in accordance with the Disclosure
and Transparency Rules of the United Kingdom's Financial Services
Authority.
As disclosed in Note 2, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this Half Year Report has been prepared in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting,' as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the Half Year 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 United Kingdom. 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 Year Report for the six months ended 30 September 2013
is not prepared, in all material respects, in accordance with
International Accounting Standard 34 as adopted by the European
Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.
Grant Thornton UK LLP
Auditor
London
29 November 2013
This information is provided by RNS
The company news service from the London Stock Exchange
END
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