TIDMSTOB
RNS Number : 8013E
Stobart Group Limited
11 May 2017
11 May 2017
Stobart Group Limited
("Stobart Group", "Stobart" or the "Group")
Results for the year ended 28 February 2017
Stobart Group Limited, the support services and infrastructure
group, today announces its results for the year ended 28 February
2017.
Introduction
-- All divisions have made good progress towards their stated
objectives during the year and Stobart continues to demonstrate
strong value creation across the business
-- Post year-end IPO of Eddie Stobart Logistics plc valued the
Group's 49% investment at GBP184.8m, significantly ahead of the
year-end carrying value of GBP58.4m and realised cash of
GBP113.3m
-- 50% increase in dividends with a proposed final dividend of
4.5p per share (18.0p per share annualised), payable in July 2017,
with further progressive quarterly dividends from this newly
established level
-- Andrew Tinkler, CEO is to focus on further value creation for
shareholders through a new structure, Stobart Capital, handing over
the CEO role to Warwick Brady, following the AGM, to deliver on and
develop the existing business strategic plan
Financial Highlights
28 February 29 February Growth
2017 2016
GBPm GBPm
Revenue from continuing
operations 129.4 126.7 +2.1%
Underlying EBITDA(1) 35.0 30.0 +16.8%
Underlying PBT(1) 27.4 18.4 +48.9%
Underlying basic EPS(2) 8.04p 4.95p +62.4%
------------ ------------ -------
-- Underlying profit before tax(1) up by 48.9% to GBP27.4m
-- Underlying basic EPS(2) increased by 62.4% to 8.04p
-- Statutory loss before tax of GBP8.0m (2016: GBP10m profit),
after deduction of non-underlying items of GBP35.4m including a
non-cash impairment of goodwill/credit for business purchase of
GBP21.6m
-- Post year-end sale and leaseback of eight ATR 72-600 aircraft
for net proceeds of GBP46.4m
Operational Highlights
-- Energy: Widnes and Tilbury processing sites commenced
operations, and Widnes biomass power plant close to completing four
month commissioning period
-- Aviation: Established 11 new routes from London Southend
Airport under the Flybe brand, operated by Stobart Air, delivering
up to 300,000 additional passengers by 2018; acquisition of
regional airline and aircraft leasing company
-- Rail: Successful delivery of Gospel Oak to Barking railway
electrification scheme on programme and under budget
-- Infrastructure: Significant value added and realised at Speke
and other sites generating net cash proceeds of GBP52.7m (2016:
24.1m)
(1) Underlying EBITDA and Underlying PBT are before
non-underlying items. See Financial Review for reconciliation to
(loss)/profit before tax.
(2) See Financial Review for underlying basic EPS.
Outlook
Already in the new financial year we have completed the partial
disposal of the Group's investment in Eddie Stobart Logistics plc,
generating cash and a significant profit for the Group and
demonstrating the ability of the Group's management team to
continue to create value for shareholders.
We are confident that the year ahead will see further progress
towards the clear objectives for each of the Group's three growth
operating divisions of Energy, Aviation and Rail and further value
creating realisations from our Infrastructure and Investments
assets.
Chief Executive Andrew Tinkler, commented:
"This year we have delivered improved underlying profitability
across the Group and put in place the foundations, management and
organisational structure to achieve our objectives.
We are on track to deliver our strategy by 2018 and drive
shareholder value through our three growth operating divisions,
whilst generating cash through the exit of our infrastructure and
investment portfolios at the right time, allowing increasing
returns to shareholders."
Results Presentation
A presentation for analysts and investors will be held today at
9.30am at The Andaz Hotel, 40 Liverpool Street, London, attendance
is by invitation only.
Enquiries:
Stobart Group c/o Redleaf Communications
Andrew Tinkler, Chief Executive
Officer
Redleaf Communications +44 20 7382 4730
Charlie Geller Stobart@redleafpr.com
Elise Palmer
Sam Modlin
Influence Associates +44 20 7287 9610
Stuart Dyble
James Andrew
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Notes to Editor:
Stobart is an entrepreneurial support services and
infrastructure business deriving income from energy, aviation,
civil engineering and investments. The Group has a strong heritage
in logistics, systems and a customer focus that continues to
support all of our divisions. The Group's strategy is to drive
growth and profitability in its core Energy, Aviation and Rail
Divisions whilst realising value for shareholders from its
Infrastructure and Investments Divisions.
Chief Executive's Statement
I have been CEO of Stobart Group for almost 10 years and during
that time we have generated a compound shareholder return of around
10% p.a. We have also developed Energy and Aviation platforms to
deliver our targets to 2018 and beyond. The Group is now uniquely
placed as an entrepreneurial public limited company that creates
value, supported by its strong heritage in logistics and systems
and with a real focus on delivering great customer service. With a
market capitalisation of close to GBP800m, a strong balance sheet
and a progressive dividend policy, the Group is well placed to
continue to deliver strong returns to shareholders for the
foreseeable future.
Where are we today?
Stobart Group now comprises three core operating divisions in
sectors with real growth opportunities. Our Energy, Aviation and
Rail civil engineering businesses are all well placed for
profitable growth over the next five years. Our Infrastructure and
Investments divisions continue their programme of divestment,
creating further value for shareholders.
Energy - this year has been about establishing the foundations
of infrastructure, logistics and people to ensure our ability to
deliver on our long-term fuel supply contracts into over 20 biomass
plants around the UK. Widnes and Tilbury storage processing sites
are now up and running and those plants are progressing towards
commissioning. Development of other processing sites at Port
Clarence and Rotherham is also underway. A full management team is
now in place, focused on professionalising the industry to deliver
long-term sustainable supply and management of predominantly
recycled wood under long-term index-linked contracts.
Aviation - a significant year for the Aviation division with
continued development of our airport, London Southend, which we
believe will play a key part in providing capacity for the
constrained London air travel market. A London airport that has
technical capacity to handle 10m+ passengers, 45 minutes from
London, will over time be a very valuable asset for the Group. We
have consolidated our regional airline and aircraft leasing
businesses, taking full ownership, and will continue to develop our
valuable long-term franchise with Aer Lingus as well as support
Flybe in the Isle of Man and from our London Southend Airport.
Rail - our Rail business continues to support speciality work
for Network Rail as well as being a tier 2 supplier to the
industry. We expect to see continued growth under the Stobart
brand. The non-rail business has also supported infrastructure
projects in our Energy and Aviation divisions by providing an
efficient low-cost value engineering construction solution.
Infrastructure - our plan to divest non-core infrastructure
assets continues and we have delivered against our plan this year.
The business is also very good at providing asset management
initiatives working alongside our Rail division, and delivering
on-time and to budget.
Investments - the post year-end IPO of Eddie Stobart Logistics
plc valued the Group's 49% investment at GBP184.8m, significantly
ahead of the year-end carrying value of GBP58.4m and realised cash
of GBP113.3m. This is a great example of how we have created
significant value for the Group and our shareholders.
People
One of my personal business beliefs is to employ people that are
better than yourself and I see this as a strength from a
shareholder perspective as well as CEO.
Working together with our new Group CEO, Warwick Brady, whom I
have known for several years and worked closely alongside for the
last six months, I believe that we can bring extensive value to the
Group. I am strongly of the view that Warwick's industry-wide
knowledge and experience will help grow and support the entire
Group. I am confident that his business experience and
entrepreneurial approach will be a key part in the next chapter of
Stobart Group's value creation.
Energy - headed by Ben Whawell, CEO Stobart Energy and the
ex-Group CFO. We have worked together for the last 17 years and I
am confident that he has the skills and experience to move the
Energy business to the next level and create significant
shareholder value.
Aviation - this division includes airports, a regional airline
and an aircraft leasing company. These businesses all have
potential and are supported by our proven logistics expertise. The
teams within this division, led by Glyn Jones, will support Warwick
in delivery of our objectives.
Rail - Managing Director Kirk Taylor, of our Rail and non-rail
civil engineering business, has worked with me since 1994. He is
diligent and passionate about our business and can grow Rail to be
the number one specialist provider to the rail and construction
industry, as well as supporting the Group in any value-adding
infrastructure projects.
Whilst I am handing over the reins to lead and run Stobart Group
to Warwick, Ben, Glyn and Kirk, as the third largest shareholder, I
believe that we are now on the next stage of our journey that will
realise the significant potential of the Group over the coming
years.
As a key founder of Stobart Group, I am committed to remaining
on the Board for the foreseeable future and to supporting Warwick's
transition to Group CEO. I will support the Executive Management
team and the Board by devoting 50% of my time to the Group and the
delivery of further significant shareholder value.
The remainder of my time will be spent working with Richard
Butcher to deliver value in our Infrastructure and Investments
divisions and, in particular in launching and developing Stobart
Capital, bringing together the Group's investment activities under
a new value creation unit. This will be a platform, working
alongside external professionals and exploiting my entrepreneurial
skills and experience, to bring investment opportunities to the
Group that complement the strategy, and have the potential to
create further returns for shareholders.
I would like to thank Richard for his valued contribution to the
business over many years and also thank Mark for his work as
interim CFO over recent months.
Andrew Tinkler
Deputy Chief Executive's Statement
I am delighted to join Stobart Group at an exciting time when
the foundations in Energy, Aviation and Rail are ripe for further
development and growth.
I have worked with the Group since 2009 during the early stages
of developing London Southend Airport when I was Chief Operating
Officer at easyJet. My experience working with this entrepreneurial
team gave me insights into the value being created. This sparked my
interest and led me to follow the Group's progress over recent
years.
Over the years, I have forged a good working relationship with
Andrew Tinkler and once I left easyJet in September 2016, I spent
three months working very closely with Andrew and the Stobart Group
Board to understand the value of the Group but moreover, to see if
I could use my international experience from my early days in
Private Equity, through to my extensive aviation experience in
Europe, to support and lead the next chapter for the Stobart
Group.
I am particularly impressed by how the Group applies its
heritage in logistics and distribution across all the divisions as
well as how it embraces the customer service ethos. When combined
with being very entrepreneurial, culturally the Group fits with my
ambitions. I expect to use the foundations in Energy, Aviation and
Rail to continue creating value for shareholders over the
long-term.
Over the last six months I have very much enjoyed working with
the Board and Andrew but moreover believe there is a lot of
unlocked value and growth potential across our core divisions that
has yet to be realised. Whilst the foundations have been laid in
each division, with investment and a clear strategic direction, the
business can continue to grow. The Group has all the resources
available to support accelerated growth and then over time the
operating businesses will underpin the value creation for our
shareholders.
Energy Business
Having now toured several of the Group's processing sites and
plants, as well as spending time working with Ben and the team, I
can see that this business is all about logistics and distribution
so fits very well with the core expertise of the Group. With
several of the large energy plants coming on stream over the next
12 months, there will inevitably be a few challenges but I am
confident that the team will deliver on the overall targets. I
expect we will deliver 60% of the market's fuel supply into biomass
plants and this will underpin the financial returns for the next 20
years or so. I also see opportunities to grow the business through
operating and managing the energy plants and extending into other
forms of fuel that can leverage our current specialist transport
and logistics operation.
Aviation
Airport - The key to the value creation is our London airport
becoming part of the answer to London's travel growth within the
airport systems. The on-going London airport capacity constraints
will mean our London airport, with its great train links 45 minutes
from London, will be an opportunity for the Capital's travel market
to grow. London Southend Airport is London's best airport and the
infrastructure can support 10m+ passengers per year. The other
differentiator is that Stobart Group provides all the services
across the airport from operating the railway station, owning and
operating our 4* hotel under the Holiday Inn brand, our food and
beverage outlets, car parking and solar farm. These all create
additional value for the Group and will be an important part of
further developing London's best airport.
There is also a lot of space to develop our property assets at
the airport which could be used for maintenance and other
businesses. It is truly remarkable that we will be able to create a
London airport capable of delivering 10m+ passengers per year for
under GBP200m, so the capital efficiency is impressive.
Airline and Aircraft Leasing - Our regional airline, Stobart
Air, based in Dublin, operates under a valuable long-term franchise
with Aer Lingus which we believe will be an important support for
IAG's focus on growing its transatlantic traffic through the Dublin
hub. Stobart Air also operates for Flybe and, in the future, will
operate regional jets under the Flybe brand to support the growth
of our London airport. Our
aircraft leasing business, Propius, supports Stobart Air and
together they will be developed to create more value for the Group.
From my perspective, the UK and Europe's regional airline market
would benefit from some type of consolidation to ensure the
capacity supports profitable regional connectivity.
Ground Handling and Support Services - The Group already
provides ground handling services and given its expertise in
logistics, distribution and customer services, we plan to grow this
business in the UK and Europe.
Stobart Exec Jet Centre - With c.100,000 private jet movements
into the London market per year, our Exec Jet Centre is well placed
to offer a great service by connecting product into London. With a
clear plan to grow this business, we believe over time it will
become a key part of London's executive aviation offering. The
Group is well set-up for growing these small but established
businesses and capitalising on the current opportunities in the
market.
Rail
Our Stobart Rail team is highly regarded in the Industry and
provides valuable tier 2 specialist services to Network Rail and
its tier 1 partners. Its real competitive advantage is the team's
innovative approach to developing equipment, systems and people to
deliver significant value to the customer. Stobart Rail is renowned
for operating strongly under critical time constraints and
delivering quality work on time and to budget.
On the non-rail side, the team are specialists in building
distribution centres, airports, racecourses etc. Together with an
innovative approach, design capability, planning and low cost
execution, they provide value engineering across the Group. They
have supported the Group by building processing sites for Stobart
Energy as well as providing specialist infrastructure projects at
the airport including taxiways, runway works etc. This provides the
Group with a real competitive advantage by being able to deliver
infrastructure at competitive costs.
Overall, after a lot of due diligence and time spent within
Stobart Group, I see an opportunity to use the foundations to grow
the Group over the next few years. We will aim to remain a very
entrepreneurial team with Andrew Tinkler supporting as an Executive
Director to ensure we do not lose our "founders mentality" of
creating value and operating in an agile way. This will ensure that
we continue to grow the business to deliver sustainable and
progressive returns for shareholders for years to come.
Warwick Brady
Financial Review
We are pleased to report improved underlying profitability,
across the majority of our divisions, and further progress towards
delivering against our medium-term financial objectives.
Revenue 2017 2016
GBP'm GBP'm Growth
---------------- ------- ------- -------
Energy 67.7 73.4 -7.8 %
Aviation 28.1 22.9 +22.8%
Rail 48.1 46.2 +4.2%
Investments - - -
Infrastructure 6.0 4.3 +39.8%
Eliminations (20.5) (20.1) +2.2%
---------------- ------- ------- -------
129.4 126.7 +2.1%
---------------- ------- ------- -------
Revenue from continuing operations has grown by 2.1% to
GBP129.4m driven by increased revenue in our Aviation division,
following the acquisition of the airline, Stobart Air. External
revenue in our Rail division also increased by 6.1% to
GBP30.5m.
Profitability 2017 2016
GBP'm GBP'm Growth
----------------------------------- ------- ------ -------
Underlying EBITDA(1)
Energy 10.2 9.1 +12.7%
Aviation 0.1 3.6 -97.1%
Rail 3.9 3.4 +15.5%
Investments 9.4 9.8 -4.1%
Infrastructure 18.9 10.5 +81.0%
Central function and eliminations (7.5) (6.4) -18.1%
----------------------------------- ------- ------ -------
Underlying EBITDA 35.0 30.0 +16.8%
Impact of fuel swaps 1.4 (2.2)
Depreciation (9.4) (8.4)
Finance costs (net) 0.4 (1.0)
----------------------------------- ------- ------ -------
Underlying profit before
tax 27.4 18.4 +48.9%
Non-underlying items (35.4) (8.4)
----------------------------------- ------- ------ -------
(Loss)/profit before tax (8.0) 10.0
Tax (1.2) (1.2)
(Loss)/profit for the
year (9.2) 8.8
----------------------------------- ------- ------ -------
(1) Underlying EBITDA represents (loss)/profit before tax and
before fuel swaps, interest, depreciation, amortisation and
non-underlying items.
Underlying EBITDA
Underlying Group EBITDA is our key measure of profitability for
the business and has grown by 16.8% to GBP35.0m. The Energy
division has improved underlying profitability in spite of a
decline in revenue following a customer entering administration.
Infrastructure profitability increased by GBP8.4m, following the
successful disposal of our Speke site. The Aviation division made
two acquisitions during the latter part of the year, which had an
adverse impact on profitability due to the seasonal nature of the
airline industry.
Central function costs and eliminations have increased by 18.1%
partially due to an increase in the share-based payment charge and
professional fees.
Depreciation
Depreciation has increased by 11.2% to GBP9.3m, due to
investment in processing sites and equipment within the Energy
division.
Finance Costs
Finance costs (net) increased from GBP1.0m cost to GBP0.4m
income, with a higher level of interest received on loans to
associates and joint ventures.
Non-Underlying Items 2017 2016
GBP'm GBP'm
--------------------------------- ------ ------
Amortisation of brand 3.9 3.9
Transaction costs/restructuring
cost 2.1 0.4
Contract set up costs 3.0 1.2
Bad debt write-off 1.9 -
Impairment of goodwill/credit 21.7 -
for business purchase
Share of post-tax profits of
associates and JVs:
Amortisation of contracts 2.8 2.9
35.4 8.4
--------------------------------- ------ ------
The charges in relation to the non-cash amortisation of the
brands and contracts are expected to continue in future periods. We
incurred GBP3.0m of contract set-up costs in the Energy division.
GBP1.0m of these costs were incurred in prior periods and there
were other excess costs in connection with delayed commissioning of
biomass plants. The bad debt write-off relates to a customer that
entered administration in the Energy division. Transaction costs
and the impairment of goodwill relate to the acquisitions and
aborted transactions in the Aviation division.
Taxation
The tax charge of GBP1.2m (2016: GBP1.2m) reflects a negative
effective tax rate of 14.4% (2016: 12.0% positive). The effective
rate is lower than the standard rate of 20.0% mainly due to the
write-off of goodwill and income in respect of the Group's post-tax
share of joint venture results being treated as non-taxable, and
the effect of the change in corporate tax rate on deferred tax
balances.
Business Segments
The business segments reported in the financial statements are
unchanged from those reported in the prior year. The segments are
Energy, Aviation, Rail, Infrastructure and Investments,
representing the operational and reporting structure of the Group.
The results of our aircraft leasing business, Propius, have
transferred from Investments to Aviation following its acquisition,
and the prior year's figures have been restated.
Earnings per Share
Earnings per share from underlying continuing operations were
8.0p (2016: 5.0p). Total basic earnings per share were 2.7p loss
(2016: 2.7p profit).
Dividends and Share Disposals 2017 2016
Interim per share 9.0p 2.0p
Final per share 4.5p 4.0p
Total per share 13.5p 6.0p
------------------------------- ------ -----
The Board has proposed a final dividend of 4.5p per share which,
subject to the approval of shareholders at the AGM, will be payable
to investors on the record date of 16 June 2017, with an
ex-dividend date of 15 June 2017, and will be paid on 7 July
2017.
During the year, the Group sold 10.1m of its treasury shares for
a net amount of GBP15.0m to fund the Propius acquisition. At the
year end, there were no shares held in treasury.
Balance Sheet 2017 2016
GBP'm GBP'm
------------------------- -------- -------
Non-current assets 510.4 453.3
Current assets 155.5 109.3
Non-current liabilities (189.6) (94.4)
Current liabilities (88.8) (54.5)
Net assets 387.5 413.7
------------------------- -------- -------
The net asset position has decreased by GBP26.2m in the year to
GBP387.5m at 28 February 2017, mainly due to the non-cash write-off
of goodwill arising on the acquisition of Everdeal Holdings
Limited.
Non-Current Assets
Property, plant and equipment of GBP326.3m (2016: GBP218.0m) has
increased following the acquisition of Propius and assets acquired
for the new biomass processing sites. The net book value of the
eight aircraft owned by Propius at the year-end was GBP100.7m.
During the year GBP14.5m (2016: GBP49.1m) of asset investment
has been made, comprising the cash purchases of property, plant and
equipment and net advances to biomass plant investments.
Investment in associates and joint ventures of GBP59.2m (2016:
GBP62.7m) include the Group's 49% share of the Eddie Stobart
Logistics business. The reduction is due to Propius Holdings
Limited being classified as a subsidiary at the year end, following
its acquisition. Investment property of GBP3.2m (2016: GBP47.0m)
represents the holding of one (2016: four) property.
Amounts owed by associates and joint ventures of GBP13.4m (2016:
GBP13.4m) represents interest-bearing loans to renewable energy
plant investments in which we also hold equity interests.
Intangible assets of GBP108.4m (2016: GBP112.3m) include the
Stobart and Eddie Stobart brands and goodwill, which principally
relates to the Energy division.
Current Assets and Current Liabilities
Current assets include GBP60.0m (2016: GBP44.4m) of development
land assets. Excluding these assets, the net current assets at
year-end total GBP6.7m (2016: GBP10.3m).
Debt and Gearing
2017 2016
Net debt - asset backed finance GBP109.5m GBP31.4m
- other GBP11.2m GBP16.6m
Underlying EBITDA/underlying
interest 92.5 31.2
Gearing 31.1% 11.6%
Operating lease commitments GBP45.8m GBP48.0m
as lessee
Operating lease rentals receivable GBP53.9m GBP41.5m
as lessor
------------------------------------ ---------- ---------
The Group acquired aircraft related debt of GBP70.7m following
the acquisition of Propius Holdings Limited. The debt at 28
February 2017 was GBP71.1m which was ringfenced and fully repaid
post year end.
During the year, the Group increased its variable rate committed
revolving credit facility with Lloyds Bank plc from GBP50.0m to
GBP65.0m until 31 March 2019, when the facility reduces back to
GBP50.0m until the end date of 31 January 2020. At the year end,
the Group has drawn GBP42.2m of the GBP65.0m facility.
Operating lease rentals receivable as lessor increased.
Cash Flow
2017 2016
GBP'm GBP'm
---------------------- ------- -------
Operating cash flow (1.7) 3.4
Investing activities 40.0 (13.6)
Financing activities (17.5) 14.3
---------------------- ------- -------
Increase in the year 20.8 4.1
At beginning of year 9.8 5.7
---------------------- ------- -------
Cash at end of year 30.6 9.8
---------------------- ------- -------
Net cash inflow from investing activities included the Speke
investment property disposal (GBP36.9m), acquisition of subsidiary
undertakings net of cash acquired (GBP7.7m) and net proceeds from
the disposal of two properties (GBP15.8m). These inflows were
offset by net cash outflows relating to purchase of property, plant
and equipment (GBP14.5m) and the equity investments in associates
and joint ventures (GBP12.5m).
Net cash outflow from financing activities included the
repayment of borrowing and finance leases (GBP10.9m) and dividends
paid on ordinary shares (GBP34.7m). These were offset by the net
draw down of GBP15.2m from the Lloyds RCF and net proceeds from the
disposal of treasury shares of GBP15.0m.
Economic Outlook
Following the UK's referendum vote to leave the membership of
the EU, management continues to monitor the implications for the
Group. The Group and its customers are predominantly UK based and
though there have been some effects on US dollar denominated costs
in the airline, this has been partly offset by the US dollar
denominated assets in the leasing company. The Group benefits from
diverse assets and sources of income, and its entrepreneurial
culture leaves it well placed to respond to future developments and
opportunities.
Post Balance Sheet Events
In April 2017, the Group entered an arrangement to sell and
leaseback eight ATR 72-600 aircraft. The Group received net
proceeds of $62.7m (GBP50.2m) after repayment of existing financing
in respect of the aircraft of $85.3m (GBP68.2m), including
refundable deposits withheld of $3.8m (GBP3.0m) and $1.0m (GBP0.8m)
in rental payments.
On 25 April 2017, the Group disposed of its 49% investment in
Greenwhitestar Holding Company 1 Limited and Greenwhitestar Finance
Limited for consideration comprising cash of GBP113.3m and a 12.5%
shareholding in Eddie Stobart Logistics plc. Eddie Stobart
Logistics plc was admitted to AIM on 25 April 2017 and the 12.5%
shareholding was valued at GBP71.5m on admission.
Consolidated Income Statement
For the year ended 28 February 2017
Year ended 28 February Year ended 29 February
2017 2016
Underlying Non-underlying Total Underlying Non-underlying Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 129,403 - 129,403 126,730 - 126,730
----------- --------------- ---------- ----------- --------------- ----------
Gain in value/profit
on disposal of
investment properties 14,614 - 14,614 8,441 - 8,441
Profit on disposal
of assets held
for sale 2,747 - 2,747 259 - 259
Profit on disposal
of property, plant
and equipment 3,480 - 3,480 183 - 183
Gain/(loss) on
fuel swaps 1,354 - 1,354 (2,184) - (2,184)
Impairment of
goodwill/credit
for business purchase - (21,646) (21,646) - - -
Other (134,355) (10,892) (145,247) (125,227) (5,547) (130,774)
Total operating
expenses (112,160) (32,538) (144,698) (118,528) (5,547) (124,075)
Share of post-tax
profits of associates
and joint ventures 9,715 (2,839) 6,876 11,130 (2,835) 8,295
----------- --------------- ---------- ----------- --------------- ----------
Operating profit/(loss) 26,958 (35,377) (8,419) 19,332 (8,382) 10,950
Finance costs (2,532) - (2,532) (2,302) - (2,302)
Finance income 2,925 - 2,925 1,343 - 1,343
----------- ---------------
Profit/(loss)
before tax 27,351 (35,377) (8,026) 18,373 (8,382) 9,991
Tax 255 (1,413) (1,158) (2,124) 927 (1,197)
----------- --------------- ----------
Profit/(loss)
for the year 27,606 (36,790) (9,184) 16,249 (7,455) 8,794
----------- --------------- ----------
Earnings/(loss) per share expressed in pence per
share
Basic 8.04p (2.67)p 4.95p 2.68p
Diluted 8.04p (2.67)p 4.94p 2.68p
----------- ---------- ----------- ----------
Consolidated Statement of Comprehensive Income
For the year ended 28 February 2017
Year ended Year ended
28 February 29 February
2017 2016
GBP'000 GBP'000
(Loss)/profit for the year (9,184) 8,794
Foreign currency translation
differences - equity accounted
joint ventures 1,848 1,564
Interest rate swap - equity
accounted associates 140 -
Foreign currency translation
differences - equity accounted
associates 878 (727)
Exchange differences on translation
of foreign operations 219 -
Other comprehensive income
to be reclassified to profit
or loss in subsequent years,
net of tax 3,085 837
Remeasurement of defined benefit
plan (3,270) (681)
Tax on items relating to components
of other comprehensive income 556 60
Other comprehensive expense
not being reclassified to
profit or loss in subsequent
years, net of tax (2,714) (621)
Other comprehensive income
for the year, net of tax 371 216
------------- -------------
Total comprehensive (expense)/income
for the year (8,813) 9,010
------------- -------------
Consolidated Statement of Financial Position
As at 28 February 2017
28 February 29 February
2017 2016
GBP'000 GBP'000
Non-current assets
Property, plant and equipment
- Land and buildings 156,458 169,327
- Plant and machinery 49,675 28,246
- Fixtures, fittings and
equipment 1,682 705
- Commercial vehicles and
aircraft 118,475 19,689
------------ ------------
326,290 217,967
Investment in associates
and joint ventures 59,198 62,699
Investment property 3,150 46,965
Intangible assets 108,358 112,296
Trade and other receivables 13,401 13,401
------------ ------------
510,397 453,328
------------ ------------
Current assets
Inventories 63,728 45,083
Trade and other receivables 48,066 48,950
Cash and cash equivalents 30,653 9,858
Assets held for sale 13,106 5,354
155,553 109,245
------------ ------------
Total assets 665,950 562,573
------------ ------------
Non-current liabilities
Loans and borrowings (133,072) (48,892)
Defined benefit pension
scheme (5,705) (2,708)
Other liabilities (21,600) (19,786)
Deferred tax (21,083) (18,290)
Provisions (8,176) (4,699)
------------ ------------
(189,636) (94,375)
------------ ------------
Current liabilities
Trade and other payables (61,487) (38,239)
Loans and borrowings (18,287) (8,958)
Corporation tax (7,098) (7,090)
Provisions (1,908) (242)
(88,780) (54,529)
------------ ------------
Total liabilities (278,416) (148,904)
------------ ------------
Net assets 387,534 413,669
============ ============
Capital and reserves
Issued share capital 35,434 35,434
Share premium 301,326 301,326
Foreign currency exchange
reserve 2,766 (179)
Reserve for own shares held
by employee benefit trust (330) (330)
Retained earnings 48,338 77,418
Group shareholders' equity 387,534 413,669
============ ============
Consolidated Statement of Changes in Equity
For the year ended 28 February 2017
Reserve
Foreign for own
Issued currency shares
share Share exchange held Retained Total
capital premium reserve by EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- --------- --------- ---------- --------- ---------- ---------
Balance at 1
March 2016 35,434 301,326 (179) (330) 77,418 413,669
Loss for the
year - - - - (9,184) (9,184)
Other comprehensive
income/(expense)
for the year - - 2,945 - (2,574) 371
--------------------- --------- --------- ---------- --------- ---------- ---------
Total comprehensive
income/(expense)
for the year - - 2,945 - (11,758) (8,813)
Employee benefit
trust - - - - 587 587
Share-based
payment credit - - - - 1,000 1,000
Tax on share-based
payment credit - - - - 857 857
Sale of treasury
shares - - - - 15,042 15,042
Purchase of
treasury shares - - - - (81) (81)
Dividends - - - - (34,727) (34,727)
Balance at 28
February 2017 35,434 301,326 2,766 (330) 48,338 387,534
--------------------- --------- --------- ---------- --------- ---------- ---------
Consolidated Statement of Changes in Equity
For the year ended 29 February 2016
Reserve
for
Foreign own
Issued currency shares
share Share exchange held Retained Total
capital premium reserve by EBT earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- --------- --------- ---------- -------- ---------- ---------
Balance at 1
March 2015 35,434 301,326 (1,016) (330) 70,834 406,248
Profit for the
year - - - - 8,794 8,794
Other comprehensive
income/(expense)
for the year - - 837 - (621) 216
--------------------- --------- --------- ---------- -------- ---------- ---------
Total comprehensive
income/(expense)
for the year - - 837 - 8,173 9,010
Share-based payment
credit - - - - 648 648
Tax on share-based
payment credit - - - - 79 79
Sale of treasury
shares - - - - 17,360 17,360
Dividends - - - - (19,676) (19,676)
Balance at 29
February 2016 35,434 301,326 (179) (330) 77,418 413,669
--------------------- --------- --------- ---------- -------- ---------- ---------
Consolidated Statement of Cash Flows
For the year ended 28 February 2017
Year ended Year ended
28 February 29 February
2017 2016
GBP'000 GBP'000
Cash (used in)/generated
from continuing operations (1,720) 159
Income taxes refunded - 3,246
------------- -------------
Net cash (outflow)/inflow
from operating activities (1,720) 3,405
Purchase of property, plant
and equipment and investment
property (14,496) (45,283)
Proceeds from grants 3,925 -
Proceeds from the sale of
property, plant and equipment
and investment property 47,063 7,340
Proceeds from disposal of
assets held for sale 7,328 7,359
Acquisition of subsidiary
undertakings (net of cash
acquired and fees) 7,664 -
Proceeds from sale and leaseback
(net of fees) - 16,769
Refundable deposit advanced (1,618) -
Distributions from joint
ventures 2,926 4,264
Non-underlying transaction (400) -
costs
Equity investment in associates (12,455) -
and joint ventures
Net amounts advanced to joint
ventures - (3,768)
Other loans advanced - (300)
Interest received 302 29
Cash inflow from discontinued (235) -
operations
------------- -------------
Net cash inflow/(outflow)
from investing activities 40,004 (13,590)
------------- -------------
Dividend paid on ordinary
shares (34,727) (19,676)
Repayment of capital element
of finance leases (10,942) (8,402)
Net drawdown from revolving
credit facility 15,197 26,812
Sale of treasury shares,
net of costs 14,961 17,360
Interest paid (1,978) (1,767)
Net cash (outflow)/inflow
from financing activities (17,489) 14,327
------------- -------------
Increase in cash and cash
equivalents 20,795 4,142
------------- -------------
Cash and cash equivalents
at beginning of year 9,858 5,716
------------- -------------
Cash and cash equivalents
at end of year 30,653 9,858
------------- -------------
Notes to the Consolidated Financial Statements
For the year ended 28 February 2017
Accounting Policies of Stobart Group Limited
Basis of Preparation and Statement of Compliance
The principal accounting policies adopted in the preparation of
the financial statements are set out below. The policies have been
consistently applied to all the years presented, unless otherwise
stated.
These Group financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRSs
and IFRIC interpretations) as adopted by the European Union
('adopted IFRSs').
The financial statements of the Group are also prepared in
accordance with the Companies (Guernsey) Law 2008.
Stobart Group Limited is a Guernsey registered company. The
Company's ordinary shares are traded on the London Stock
Exchange.
Going Concern
The Group's business activities, together with factors likely to
affect its future performance and position, are set out in the
Chief Executive's Statement and the financial position of the
Group, its cash flows and funding are set out in the Financial
Review.
The Group has considerable financial resources, together with
contracts with a number of customers and suppliers. The financial
forecasts show that the Group's remaining borrowing facilities are
adequate such that the Group can operate within these facilities
and meet its obligations when they fall due for at least 12
months.
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Accordingly, the
financial statements have been prepared on a going concern
basis.
Segmental Information
The reportable segment structure is determined by the nature of
operations and services. The operating segments are Stobart Energy,
Stobart Aviation, Stobart Rail, Stobart Investments and Stobart
Infrastructure.
The Stobart Energy segment specialises in the supply of
sustainable biomass for the generation of renewable energy.
The Stobart Aviation segment specialises in the operation of
commercial airports, airline operations and aircraft leasing.
The Stobart Rail segment specialises in delivering internal and
external civil engineering development projects including rail
network operations.
The Stobart Investments segment holds a non-controlling interest
in a transport and distribution business.
The Stobart Infrastructure segment specialises in management,
development and realisation of a portfolio of property assets as
well as investments in biomass energy plants.
The Executive Directors are regarded as the Chief Operating
Decision Maker. The Directors monitor the results of each business
unit separately for the purposes of making decisions about resource
allocation and performance assessment. The main segmental profit
measure is underlying EBITDA, which is calculated as profit/(loss)
before tax, interest, depreciation, amortisation and before fuel
swaps and non-underlying items. The aircraft leasing business joint
venture was included in the Investments segment in the prior year's
annual report segmental information note. This business became a
subsidiary during the year and has been included in the Aviation
segment in the segmental analysis in the current year. The prior
year figures for the aircraft leasing business, which were included
in the Investments segment in the prior year's annual report, have
been restated to be consistent. This is considered to better
reflect the management of the business.
Income taxes, finance costs and certain central costs are
managed on a Group basis and are not allocated to operating
segments.
Year ended 28 Adjustments
February 2017 Energy Aviation Rail Investments Infrastructure and eliminations Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External 60,811 27,499 30,527 - 5,532 5,034 129,403
Internal 6,905 599 17,547 - 493 (25,544) -
-------- --------- -------- ------------ --------------- ------------------ ---------
Total revenue 67,716 28,098 48,074 - 6,025 (20,510) 129,403
-------- --------- -------- ------------ --------------- ------------------ ---------
Underlying EBITDA 10,242 107 3,919 9,378 18,934 (7,598) 34,892
-------- --------- -------- ------------ --------------- ------------------ ---------
(Loss)/gain on
fuel swaps - (11) - - - 1,365 1,354
Depreciation (3,794) (4,186) (1,045) - (84) (269) (9,378)
Interest 8 (533) (179) - 1,613 (516) 393
-------- --------- -------- ------------ --------------- ------------------ ---------
Underlying profit/(loss)
before tax 6,456 (4,623) 2,695 9,378 20,463 (7,018) 27,351
-------- --------- -------- ------------ --------------- ------------------ ---------
New business and
new contract set
up costs (2,999) - - - - - (2,999)
Restructuring
costs (83) - - - - - (83)
Transaction costs - - - - - (2,003) (2,003)
Bad debt write-off (1,869) - - - - - (1,869)
Amortisation of
acquired intangibles (221) - - - - (3,717) (3,938)
Impairment of
goodwill/credit
for business purchase - - - - - (21,646) (21,646)
Non-underlying
items included
in share of post-tax
profits of associates
and joint ventures - - - (2,839) - - (2,839)
-------- --------- -------- ------------ --------------- ------------------ ---------
Profit/(loss)
before tax 1,284 (4,623) 2,695 6,539 20,463 (34,384) (8,026)
-------- --------- -------- ------------ --------------- ------------------ ---------
Restated
Year ended 29 Adjustments
February 2016 Energy Aviation Rail Investments Infrastructure and eliminations Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External 66,009 22,864 28,783 - 4,090 4,984 126,730
Internal 7,439 11 17,374 - 219 (25,043) -
-------- --------- -------- ------------ --------------- ------------------ --------
Total revenue 73,448 22,875 46,157 - 4,309 (20,059) 126,730
-------- --------- -------- ------------ --------------- ------------------ --------
Underlying EBITDA 9,085 3,665 3,393 9,780 10,459 (6,431) 29,951
-------- --------- -------- ------------ --------------- ------------------ --------
Loss on fuel swaps - - - - - (2,184) (2,184)
Depreciation (2,909) (3,957) (1,276) - (48) (245) (8,435)
Interest (22) (180) (216) - 1,006 (1,547) (959)
-------- --------- -------- ------------ --------------- ------------------ --------
Underlying profit/(loss)
before tax 6,154 (472) 1,901 9,780 11,417 (10,407) 18,373
-------- --------- -------- ------------ --------------- ------------------ --------
New business and
new contract set
up costs - (1,214) - - - - (1,214)
Transaction costs - - - - - (395) (395)
Amortisation of
acquired intangibles (221) - - - - (3,717) (3,938)
Non-underlying
items included
in share of post
tax profits of
associates and
joint ventures - - - (2,835) - - (2,835)
-------- --------- -------- ------------ --------------- ------------------ --------
Profit/(loss)
before tax 5,933 (1,686) 1,901 6,945 11,417 (14,519) 9,991
-------- --------- -------- ------------ --------------- ------------------ --------
No segmental assets or liabilities information is disclosed
because no such information is regularly provided to, or reviewed
by, the Chief Operating Decision Maker.
Inter-segment revenues are eliminated on consolidation. Included
in adjustments and eliminations are net central costs of
GBP6,754,000 (2016: GBP10,257,000) and an intra-group profit of
GBP264,000 (2016: GBP150,000). There is also external income within
adjustments and eliminations which comprises brand licence income,
merchandising income and income from other business services.
Business Combinations
On 24 February 2017, the Group acquired the remaining 33.3% of
the ordinary shares in Propius Holdings Limited (Propius). Propius
is registered in the Cayman Islands. The principal activity of
Propius is aircraft leasing. Together with the existing 66.7%
already owned by the Group prior to the acquisition, this gave the
Group control over Propius.
Control was only deemed to be obtained on 24 February 2017, due
to the existence of a previously held shareholder agreement.
The primary reason for the acquisition was to give the Group
more control over its ability to grow and develop its aviation
operations across the UK, Ireland and Europe.
The provisional fair values of the identifiable assets and
liabilities of Propius as at the date of acquisition are as
follows:
Provisional
fair value
recognised
on
acquisition Book Value
GBP000 GBP000
Property, plant and equipment 100,135 100,135
Trade and other receivables 933 933
Cash and cash equivalents 14,406 14,406
Loans and borrowings (70,742) (66,797)
Trade and other payables (818) (818)
Maintenance deposits - (11,704)
Deferred tax liabilities (2,651) (1,691)
Net identifiable assets
and liabilities 41,263 34,464
============ ==========
Consideration paid:
Cash 11,763
Fair value of existing equity
interest 28,149
Total consideration 39,912
============
Excess fair value of net
assets over consideration 1,351
============
The consideration comprised cash of GBP11,763,000 and the
existing owned proportion of the fair value of the net assets at
acquisition date of GBP28,149,000. There was no contingent
consideration as defined in IFRS 3 'Business Combinations' in
connection with this acquisition. The Group incurred
acquisition-related transaction costs of GBP1,402,000. These costs
have been included in non-underlying other operating expenses in
the Group's Consolidated Income Statement.
Immediately prior to this acquisition, the Group owned 66.7% of
Propius which was disclosed as an equity accounted joint venture
with a carrying value of GBP22,771,000.
The difference of GBP5,378,000, between this carrying value of
GBP22,771,000 and the existing owned proportion of the net assets
at acquisition date of GBP28,149,000, has been recognised in the
Consolidated Income Statement within impairment of goodwill/credit
for business purchase.
The excess of fair value of net assets over consideration of
GBP1,351,000 has been taken to the Consolidated Income Statement,
and is disclosed within impairment of goodwill/credit for business
purchase. Due to fair value adjustments and the transaction being
completed at a later date than the price being agreed, net assets
exceeded consideration.
In the four days to 28 February 2017, the subsidiary contributed
net profit of GBP34,000 to the consolidated loss for the year. If
the acquisition had occurred on the first day of the accounting
period, Group revenue would have been an estimated GBP12,152,000
higher before elimination of intra-group trading and net profit
would have been an estimated GBP1,811,000 higher, excluding share
of profits already recognised.
Acquisition of Everdeal Holdings Limited
On 8 February 2017, the Group acquired the remaining 19% of the
ordinary shares in Everdeal Holdings Limited (Everdeal). Everdeal
is registered in Ireland. The principal activity of Everdeal is the
operation of an airline. Eight of the aircraft in the Everdeal
fleet are leased from the group headed by Propius Holdings
Limited.
Control was only deemed to be obtained on 8 February 2017, due
to clauses within the Articles of Association.
The primary reason for the acquisition was to give the Group
more control over its ability to grow and develop its aviation
operations across the UK, Ireland and Europe. Although Everdeal had
book value net liabilities of GBP26.9m on acquisition, the
Directors are satisfied that their future actions can have a
positive impact on the financial position and performance of this
business.
The acquisition had the following effect on the Group's assets
and liabilities:
Provisional
fair value
recognised
on Book
acquisition value
GBP000 GBP000
Property, plant and equipment 1,158 1,158
Inventory 3,066 3,282
Trade and other receivables 6,256 6,256
Cash and cash equivalents 7,188 7,188
Loans and borrowings (7,843) (7,843)
Trade and other payables (27,530) (27,530)
Maintenance reserve liability (3,728) (6,813)
Deferred tax liabilities (386) -
Provisions (5,992) (2,584)
Net identifiable assets
and liabilities (27,811) (26,886)
============ ========
Consideration paid:
Cash 564
Fair value of existing
equity interest -
Total consideration 564
============
Goodwill 28,375
============
The consideration comprised cash of GBP564,000 and the existing
owned proportion of the fair value of the net assets at acquisition
date of GBPnil. There was no contingent consideration as defined in
IFRS 3 'Business Combinations' in connection with this acquisition.
The Group incurred acquisition-related transaction costs of
GBP200,000. These costs have been included in non-underlying other
operating expenses in the Group's Consolidated Income
Statement.
Immediately prior to this acquisition, the Group owned 81% of
Everdeal which was disclosed as an equity accounted associate with
a carrying value of GBPnil. There was no resulting gain or loss
taken to the income statement following remeasurement of this
investment.
In the 20 days to 28 February 2017, the subsidiary contributed a
net loss of GBP1,064,000 to the consolidated loss for the year. If
the acquisition had occurred on the first day of the accounting
period, Group revenue would have been an estimated GBP111,364,000
higher and net profit would have been an estimated GBP1,177,000
higher.
Following an impairment review, during which the future
forecasts of the business were reviewed, the goodwill arising on
acquisition was written off in full in the Consolidated Income
Statement and disclosed within impairment of goodwill/credit for
business purchase.
Non-Underlying Items
Non-underlying items included in the Consolidated Income
Statement comprise the following:
Operating expenses 2017 2016
GBP'000 GBP'000
-------------------------------------- -------- --------
New business and new contract
set up costs 2,999 1,214
Transaction costs 2,003 395
Restructuring costs 83 -
Bad debt write-off 1,869 -
Amortisation of acquired intangibles 3,938 3,938
Impairment of goodwill/credit 21,646 -
for business purchase
-------------------------------------- -------- --------
32,538 5,547
-------------------------------------- -------- --------
Share of post-tax profits of 2017 2016
associates and joint ventures
GBP'000 GBP'000
-------------------------------------- -------- --------
Amortisation of acquired intangibles 2,839 2,835
-------------------------------------- -------- --------
2,839 2,835
-------------------------------------- -------- --------
New business and new contract set up costs comprise costs of
investing in major new business areas or major new contracts to
commence or accelerate development of our business presence. The
costs in the current year were in relation to the development of
the Energy business, principally pre-contract costs and excess
costs incurred due to delays in customer plants becoming
operational.
Transaction costs comprise costs of making investments or costs
of financing transactions that are not permitted to be debited to
the cost of investment or as issue costs. These costs include costs
of any aborted transactions.
Restructuring costs comprise costs of integration plans and
other business reorganisation and restructuring undertaken by
management. Costs include cost rationalisation, site closure costs,
certain short-term duplicated costs and other costs related to the
reorganisation and integration of businesses. These are principally
expected to be one-off in nature.
The bad debt write-off relates to a significant receivable,
written off due to the customer entering administration.
Amortisation of acquired intangibles comprises the amortisation
of intangible assets including those identified as fair value
adjustments in acquisition accounting. The charge in the year is
principally in connection with amortisation of the brand
assets.
Impairment of goodwill/credit for business purchase comprises
the following:
2017 2016
GBP'000 GBP'000
------------------------------------- -------- --------
Everdeal goodwill 28,375 -
Propius credit for business purchase (1,351) -
Revaluation gain on equity accounted (5,378) -
investment in Propius
------------------------------------- -------- --------
21,646 -
------------------------------------- -------- --------
Non-underlying items included in the share of post-tax profits
of associates and joint ventures all relate to the investment in
Greenwhitestar Holding Company 1 Limited. Amortisation of acquired
intangibles includes amortisation of the customer
relationships.
Dividends
Dividends paid on ordinary 2017 2017 2016 2016
shares
Rate Rate
p GBP'000 p GBP'000
---------------------------- ----- -------- ----- --------
Interim dividend paid
20 January 2017 3.0 10,630 - -
Interim dividend paid
7 October 2016 3.0 10,327 - -
Final dividend for 2016
paid 8 July 2016 4.0 13,770 - -
Interim dividend paid
4 December 2015 - - 2.0 6,559
Final dividend for 2015
paid 3 July 2015 - - 4.0 13,117
---------------------------- ----- -------- ----- --------
10.0 34,727 6.0 19,676
---------------------------- ----- -------- ----- --------
An interim dividend of 3.0p per share totalling GBP10,630,000
was paid on 7 April 2017. A final dividend of 4.5p per share
totalling GBP15,945,000 was declared on 11 May 2017 and subject to
shareholder approval will be paid on 7 July 2017. Neither of these
dividends are recognised as a liability as at 28 February 2017.
Financial Assets and Liabilities
Loans and borrowings 2017 2016
GBP'000 GBP'000
----------------------------------------------------------- -------- --------
Non-current
Fixed rate:
* Obligations under finance leases and hire purchase
contracts 7,847 6,608
64,269 -
* Bank loans
Variable rate:
* Obligations under finance leases and hire purchase
contracts 19,252 15,902
* Bank loans 41,704 26,382
----------------------------------------------------------- -------- --------
133,072 48,892
----------------------------------------------------------- -------- --------
Current
Fixed rate:
* Obligations under finance leases and hire purchase
contracts 1,401 2,295
6,975 -
* Bank loans
Variable rate:
* Obligations under finance leases and hire purchase
contracts 9,911 6,663
18,287 8,958
----------------------------------------------------------- -------- --------
Total loans and borrowings 151,359 57,850
----------------------------------------------------------- -------- --------
Cash 30,653 9,858
----------------------------------------------------------- -------- --------
Net debt 120,706 47,992
----------------------------------------------------------- -------- --------
The obligations under finance leases and hire purchase contracts
are taken out with various lenders at fixed or variable interest
rates prevailing at the inception of the contracts.
During the year, the GBP50,000,000 variable rate committed
revolving credit facility with a facility end date of January 2019
was amended to GBP65,000,000 and extended to an end date of January
2020. This facility was drawn at GBP42,200,000 (2016:
GBP27,000,000) at the year end.
The Group was in compliance with financial covenants throughout
both the current and prior year.
Note to the Consolidated Cash Flow Statement
Year ended Year ended
28 February 29 February
2017 2016
GBP'000 GBP'000
---------------------------------------- ------------- -------------
(Loss)/profit before tax (8,026) 9,991
Adjustments to reconcile (loss)/profit
before tax to net cash flows:
Non-cash:
Gain in value of investment
properties (2,898) (8,441)
Realised profit on sale of
property, plant and equipment
and investment properties (15,196) (183)
Share of post-tax profits of
associates and joint ventures
accounted for using the equity
method (6,876) (8,295)
(Profit)/loss on disposal of/loss
in value of assets held for
sale (2,747) 16
Profit on sale and leaseback - (1,893)
Release of deferred profit (772)
on sale and leaseback -
Depreciation of property, plant
and equipment 9,378 8,435
Finance income (2,925) (1,343)
Finance costs 2,532 2,302
Release of grant income (313) (302)
Release of deferred premiums (3,045) -
Impairment of goodwill/credit 21,646 -
for business purchase
Amortisation of intangibles 3,938 3,938
Charge for share based payments 1,000 648
(Gain)/loss on fuel swaps mark
to market valuation (1,820) 1,497
Working capital adjustments:
Decrease in inventories 215 1,535
Decrease/(increase) in trade
and other receivables 5,767 (3,747)
Decrease in trade and other
payables (1,578) (3,999)
Cash (used)/generated from
continuing operations (1,720) 159
---------------------------------------- ------------- -------------
Related Parties
Relationships of Common Control or Significant Influence
WA Developments International Limited is owned by W A Tinkler.
During the year, the Group made purchases of GBP344,000 (2016:
GBPnil) relating to the provision of passenger transport and the
Group levied recharges of GBP38,000 (2016: GBP41,000) relating to
the recovery of staff costs and expenses to WA Developments
International Limited. GBPnil (2016: GBPnil) was due from and
GBPnil (2016: GBPnil) was due to WA Developments International
Limited at the year end.
Apollo Air Services Limited is owned by W A Tinkler. During the
year, the Group made purchases of GBP388,000 (2016: GBP525,000)
relating to the provision of passenger transport and sales of
GBP35,000 (2016: GBP19,000) relating to fuel to Apollo Air Services
Limited. GBPnil (2016: GBPnil) was owed by the Group and GBP7,000
(2016: GBPnil) was owed to the Group by this company at the year
end.
During the year, the Group made purchases of GBP2,000 (2016:
GBP4,000) and sales of GBP9,000 (2016: GBP54,000) to WA Tinkler
Racing, a business owned by W A Tinkler, relating to car hire.
GBP2,000 (2016: GBPnil) was owed to the Group and GBPnil (2016:
GBPnil) was owed by the Group at the year end.
During the year, a number of close family members of W A Tinkler
were employed by the Group. The total emoluments of those close
family members, including benefits provided as part of their
employment, amounted to GBP33,000 (2016: GBP53,000).
Associates and Joint Ventures
The Group headed by Greenwhitestar Holding Company 1 Limited,
which owns Eddie Stobart Logistics Limited, is an associate
undertaking. During the year, the Group made sales of GBP4,138,000
(2016: GBP11,962,000), mainly relating to cost recharges (see
below), and purchases of GBP1,006,000 (2016: GBP5,160,000), mainly
relating to haulage costs and cost recharges (see below). A balance
of GBP156,000 (2016: GBP475,000) was owed by the Group and
GBP741,000 (2016: GBP684,000) was owed to the Group at the year
end. These balances are shown within current trade and other
receivables/payables. The Group has guaranteed certain obligations
under leases for properties operated by Eddie Stobart
Logistics.
Significant examples of cost recharges are time apportioned
staff costs, truck and trailer hire costs, property leases, office
space rental charges, fuel and car costs, IT hardware and software
costs and payroll processing costs.
On 8 February 2017, the Group acquired a controlling interest in
Everdeal Holdings Limited which was previously classified as a
joint venture. Prior to acquisition, the Group had loans, not part
of the net investment, outstanding from companies within the group
headed by Everdeal Holdings Limited, with a book value of
GBP6,538,000 (2016: GBP6,538,000). The loans were unsecured and due
for repayment within one year. Prior to acquisition, the Group made
sales of GBP693,000 (2016: GBPnil) to the Group headed by Everdeal
Holdings Limited, mainly relating to the provision of aircraft,
fuel and landing charges, and purchases of GBP75,000 (2016:
GBPnil).
The Group had loans, not part of the net investment, outstanding
from its associate interest, Shuban Power Limited, of GBP5,250,000
(2016: GBP5,250,000) at the year end, disclosed within trade and
other receivables in non-current assets. The interest outstanding
at the year end was GBP1,475,000 (2016: GBP1,055,000) and is
disclosed within trade and other receivables. The loans are
unsecured, will be settled in cash and have no fixed repayment
date.
The Group had loans, not part of the net investment, outstanding
from its associate interest, Shuban 6 Limited, of GBP849,000 (2016:
GBP849,000) at the year end, disclosed within trade and other
receivables in non-current assets. The interest outstanding at the
year end was GBP112,000 (2016: GBP45,000) and is disclosed within
trade and other receivables. The loans are unsecured, will be
settled in cash and have no fixed repayment date.
The Group had loans, not part of the net investment, outstanding
from its associate interest, Mersey Bioenergy Holdings Limited, of
GBP7,302,000 (2016: GBP7,302,000) at the year end. This balance is
disclosed within trade and other receivables in non-current assets.
The interest outstanding at the year end was GBP1,967,000 (2016:
GBP838,000) and is disclosed within trade and other receivables.
The loans are unsecured, have a ten-year term ending in November
2024 and will be settled in cash.
There were no other balances between the Group and its joint
ventures and associates during the current or prior year.
All loans are unsecured and all sales and purchases are settled
in cash on the Group's standard commercial terms.
Post Balance Sheet Events
In April 2017, the Group entered an arrangement to sell and
leaseback eight ATR 72-600 aircraft. The Group received net
proceeds of $62.7m (GBP50.2m) after repayment of existing financing
in respect of the aircraft of $85.3m, including refundable deposits
withheld of $3.8m (GBP3.0m) and $1.0m (GBP0.8m) in rental payments.
The leases are for a ten-year term with an option to terminate
after six years. Aggregate payments under the leases will amount to
$15.4m (GBP12.3m) per annum. The Group will continue to operate all
eight aircraft within its airline, primarily providing flights
under the Aer Lingus franchise agreement.
On 25 April 2017, the Group disposed of its 49% investments in
Greenwhitestar Holding Company 1 Limited and Greenwhitestar Finance
Limited for consideration comprising cash of GBP113.3m and a 12.5%
shareholding in Eddie Stobart Logistics plc. Eddie Stobart
Logistics plc was admitted to AIM on 25 April 2017 and the 12.5%
shareholding was valued at GBP71.5m on admission.
There were no other events after the reporting period that are
material for disclosure in the financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ABMITMBMBMLR
(END) Dow Jones Newswires
May 11, 2017 02:01 ET (06:01 GMT)
Grafico Azioni Esken (LSE:ESKN)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni Esken (LSE:ESKN)
Storico
Da Ott 2023 a Ott 2024
