Chairman's Statement
I am pleased to present the audited Consolidated Financial Statements of B.P. Marsh & Partners Plc for the year ended 31 January 2018.
It has proved to be another year of strong growth and significant positive developments for the Group.
The value of the equity portfolio has increased by 31.3% in the year, driven in particular by robust growth in Nexus, LEBC and CBC, and Net Asset Value has increased by 24.1% to £98.9m or 339p per share. We are delighted to have delivered a total shareholder return in the year of 25.5%.
We made four new investments during the year. We were pleased to make two new Lloyd's broking investments in London and to further our geographic expansion with two new North American investments.
Within the existing portfolio, we provided further support to LEBC and increased our shareholding by an additional 17.84%, to take us to a majority position of 60.88%. In December 2017, LEBC completed the £5m acquisition of Aspira, a Bristol-based IFA business, to which we contributed loan funding of £1.5m.
We supported Nexus with a £4m loan facility that has enabled it to pursue its acquisition strategy, with four acquisitions during the year.
The disposal of Besso, after a partnership spanning two decades, at an Internal Rate of Return (“IRR”) of 21.9%, further demonstrates the success of our model. We also successfully disposed of our Trireme investment by way of sale back to the majority shareholder in that business, US Risk Inc, at an IRR of 15.6%.
Our Group now has a geographically diverse portfolio with a range of investments from those which are well-developed and considering their options for further growth, to the recent start-ups which are beginning to make headway.
We continue to do all that we can to build value for our shareholders whilst providing a sustainable dividend and are pleased to announce a 27% increase in the dividend to 4.76p per share.
On the conclusion of an excellent year, the Group is in a sound financial position, has a strong portfolio of investments and a management team committed to driving our business forward. The Board notes the current level of uncommitted cash and is considering its options in this respect. We believe that the Group is at a key phase of its development and we look forward to the year to come.
Business Update
Summary of Developments in the Portfolio
During and subsequent to the financial year ended 31 January 2018, the following developments have taken place:
New Investments – Lloyd's Brokers
Investment in EC3 Brokers Ltd (“EC3”)
On 18 December 2017 the Group announced an investment into EC3 through EC3 Brokers Group Limited. The Group took an effective 20% equity stake in EC3 for a total cash consideration of £5m, in a mixture of Preferred and Ordinary shares.
EC3 is an independent specialist Lloyd's broker and reinsurance broker, established in 2014 by its current CEO, Danny Driscoll. EC3 provides services to a wide array of clients across several sectors, including construction, casualty, entertainment and cyber & technology, with a focus in the US, UK and Middle Eastern markets.
Investment in CBC UK Ltd (“CBC”)
On 17 February 2017 the Group acquired a 35% shareholding in CBC for £4m.
CBC is a retail and wholesale Lloyd's insurance broker, offering a wide range of services to commercial and personal clients as well as broking solutions to intermediaries.
New Investments – USA
Investment in Mark Edward Partners LLC (“MEP”)
On 12 October 2017 the Group invested in MEP, taking a 30% equity stake for $6m.
MEP is a specialty insurance broker offering a wide range of risk management services to commercial and private clients. Established in 2009 by Mark Freitas, Founder and CEO, it is a national U.S. firm with licenses to operate in all 50 states and has offices in New York, Palm Beach and Los Angeles.
Investment in XPT Group LLC (“XPT”)
On 13 June 2017, the Group invested US$6m into XPT, a newly established US specialty lines insurance distribution company, subscribing for a 35% stake.
The management team at XPT is a line-up of industry veterans, led by Tom Ruggieri, formerly of Marsh McLennan & Companies, Advisen and Swett & Crawford.
Follow-on Investments and Funding
LEBC Holdings Ltd (“LEBC”)
The Group purchased a further 17.84% stake in LEBC for aggregate consideration of £7.14m on 26 July 2017. Following the purchase, the Company had an aggregate shareholding of 60.88% in LEBC, with the balance held by Founder and CEO, Jack McVitie and LEBC Management. The Group's usual strategy is to take minority equity positions, however in this instance the opportunity to acquire additional shares proved compelling and was welcomed by the LEBC incumbent management.
In December 2017 the Group provided loan funding of £1.5m to LEBC for the £5m acquisition of Aspira, a Bristol-based advisory firm with 50 staff and nearly £0.5bn of funds under management. The acquisition completed on 6 February 2018. The Aspira acquisition is expected to be earnings enhancing in the current year. As a result of shares issued as part of the consideration for this transaction the Group's shareholding in LEBC was diluted to 59.34%.
Follow-on Funding
Nexus Underwriting Management Ltd (“Nexus”)
On 10 July 2017 the Group provided Nexus, in which it holds an 18.14% shareholding, with a £4m Loan Facility secured as part of a wider debt fundraising exercise, to undertake M&A activity.
Nexus secured £30m in loan funding in total, with the balance of £26m provided by funds managed by HPS Investment Partners, LLC (“HPS”).
Disposals
Besso Insurance Group Ltd (“Besso”)
The Group sold its entire 37.94% shareholding in Besso for cash to BGC Partners Inc (“BGC”) on 28 February 2017, with the Group receiving £22m in cash (net of transaction costs and pre-tax and after adjustments) and delivering an IRR of 21.9%.
Trireme Insurance Group Ltd (“Trireme”)
The Group disposed of its 29.94% shareholding in Trireme for £2.96m cash, to its fellow shareholder U.S. Risk Midco, LLC in April 2017. This disposal represents an IRR (including fees) of 15.6%.
Portfolio Update
UK
CBC UK Ltd (“CBC”)
CBC has grown strongly since investment in 2017 and for the financial year ended 31 December 2017 reported unaudited revenue of £5.5m and EBITDA of £836,000. This is an increase of £648,000 or 345% on the 2016 EBITDA of £188,000.
CBC is looking at a number of acquisition opportunities currently, as well as actively seeking individuals or teams that would complement the existing business, to further its growth ambitions.
CBC Chairman Andrew Wallas commented:
“We are very pleased with the progress that has been made since our Management Buy Out. We have created a strong platform from which to build. Our absolute priority is to acquire additional quality people with intellectual capital to support the continuing growth of our business.”
LEBC Holdings Ltd
LEBC Group Ltd (“LEBC Group”), the trading subsidiary for LEBC, continues to deliver strong organic growth. In the year to 30 September 2017 it declared a turnover of £18.1m and a trading profit of £3m for the year. This represents an increase on the 2016 results of 17.5% on turnover (2016 £15.4m) and 42.8% on trading profit (2016 £2.1m). Currently, on a like for like basis, LEBC is trading significantly ahead of last year.
On 1 August 2017 LEBC Group successfully completed the process of becoming a FCA directly authorised entity, having previously been an Appointed Representative of TenetConnect Limited. The key driver of the application for direct authorisation was to have a compliance framework and processes in place tailored to LEBC's business, particularly in recognition of the pace of change in the business and the industry at large over recent years.
The Aspira acquisition is integrating well and proving to be an excellent strategic fit, extending LEBCs geographic reach in the South West and bringing additional experienced advisors and valued support staff in to the business. Full integration is expected from 1 October 2018.
Nexus Underwriting Management Ltd (“Nexus”)
Nexus has undertaken a number of acquisitions in the Group's financial year to 31 January 2018, including Vectura Underwriting, Equinox Global, Zon Re Accident Reinsurance and Credit Risk Solutions.
Since the Company's investment in 2014, Nexus has grown its Gross Written Premium from £56m in 2014 to £132m in 2017. In the same period, commission income has increased from £12.3m to £23.5m in 2017 and EBITDA has increased from £2.6m to an estimated £10m in 2017. The 2017 figures included above are on an unaudited basis.
On 19 January 2018 Nexus announced that it had appointed Mike Sibthorpe as CEO of Insurance and Reinsurance with effect from April 2018, as part of a wider management restructure. Mike Sibthorpe was previously Chief Underwriting Officer for Amtrust at Lloyd's.
USA
XPT Group LLC (“XPT”)
Since the Group's investment, XPT has made two acquisitions: Western Security Surplus Insurance Brokers Inc, a Texas-based wholesale broker and managing general agency, and W.E. Love & Associates Inc, a North Carolina based managing general agency.
XPT has a strong pipeline of further acquisition opportunities under consideration.
Europe
Summa Insurance Brokerage S.L. (“Summa”)
For the year ended 31 December 2017, Summa reported unaudited Revenue of €6.5m and Recurring EBITDA of €1.4m.
The market in which Summa operates remains competitive, with rates continuing to soften in both the general and agricultural insurance markets.
The Group continues to work with Management to develop the business, taking advantage of a fragmented insurance intermediary market to assess M&A and Franchise opportunities, where available, as well as developing additional niche product offerings for the Spanish insurance market.
South Africa
Bastion Reinsurance Brokerage (PTY) Ltd (“Bastion Re”)
Bulwark Investment Holdings (PTY) Ltd (“Bulwark”)
Property and Liability Underwriting Managers (PTY) Ltd (“PLUM”)
The Group's South African investments have been through a period of difficult trading and macro-economic conditions. A new strategic plan, with the benefit of an augmented Board, has been implemented to effect change with the support of B.P. Marsh. Nevertheless, reflecting the Group's customary prudent approach, a full impairment has been made against these investments.
Dividend
In recognition of the Group's progress during the year, the Board has recommended an increase in the dividend of 1p per share, to 4.76 pence per share for the financial year ending 31 January 2018, which will be paid on 31 July 2018 to shareholders whose names are on the register on 13 July 2018.
This is an increase of 27% over the dividend of 3.76p per share (£1.1m) paid in respect of the prior year. It is the Group's aspiration to maintain this level for the year ending 31 January 2019, subject to ongoing review and approval by the Board and the Company's shareholders.
The Board continues to strike a balance between investing cash into new opportunities for long-term capital growth and providing shareholders with a sustainable yield.
Share Buy-Backs
The Board has a stated policy, regularly reviewed, of undertaking low volume share buy-backs at times when the Group's Share Price represents a 20% or more discount to Net Asset Value. The Board considers this is a useful stabilising mechanism during periods of market or share price volatility.
Substantial Shareholding Exemption (“SSE”)
Finance (No.2) Act 2017 introduced significant changes to the SSE rules in Taxation of Chargeable Gains Act 1992 Sch. 7AC which applied to share disposals on or after 1 April 2017. In general terms, the rule changes relax the conditions for a company such as B.P. Marsh to qualify for SSE on a share disposal.
Having reviewed our current investment portfolio, we consider that the Group should benefit from this reform to the SSE rules and, as a result, we would anticipate that on a disposal of shares in our current investments, so long as the shares have been held for 12 months, they should qualify for SSE and no corporation tax charge should arise on the disposal.
As such, and having assessed the current portfolio, we anticipate that there should currently be no requirement to provide for deferred tax (£4.9m provision as at 31 July 2017) in respect of unrealised gains on those investments under the current requirements of the International Financial Reporting Standards (“IFRS”). As such there was no deferred tax provision at 31 January 2018. The requirement for a deferred tax provision ongoing is subject to continual assessment of each investment to test whether the SSE conditions continue to be met based on information that is available to the Group and that there is no change to the accounting treatment in this regard under IFRS. It should also be noted that, until the date of the actual disposal, it will not be possible to ascertain if all the SSE conditions are likely to have been met and, moreover, obtaining agreement of the tax position with HM Revenue & Customs may possibly not be forthcoming until several years after the end of a period of accounts.
Given the flexible nature of the Group's investment strategy this does not imply that the Group will only make investment decisions based upon the SSE rules going forwards, although this will form part of the overall investment proposition.
New Business Opportunities and Outlook
The financial year closed with a total of 77 new opportunities having been presented to the Group during the year, this is broadly in line with previous years with total number of opportunities in 2017 and 2016 being 84 and 71 respectively. Of the 77, the majority were in the insurance sector, with 41 insurance intermediary enquiries, or 53%.
Four new investments were made during the year, two in the U.S. and two in London. During the year, several opportunities from the pipeline were referred on to portfolio companies as potential bolt-ons.
The Group's model of making equity investments in financial services intermediary businesses with a partnership approach and a long-term view continues to deliver attractive opportunities. The recent investments in the U.S. have ensured that the portfolio now has geographic representation in the UK, Europe, U.S., Singapore, Australia, Canada and South Africa, which the Group believes represents a solid international framework and makes it well-positioned to take advantage of global economic growth.
Cash Balance
At 31 January 2018 the cash balance was £5.4m, with current uncommitted cash of £0.5m. The Board notes the current level of uncommitted cash and is considering its options in this respect.
Financial Performance
At 31 January 2018, the net asset value of the Group was £98.9m, or 339p per share (2017: £79.7m, or 273p per share) including a provision for deferred tax where relevant. This equates to an increase in net asset value of 24.1% (2017: 12.5%) for the year, or 19.5% excluding any deferred tax movement.
The Group increased its dividend payment to £1.1m (or 3.76p per share) during the year, as announced previously (2017: £1.0m or 3.42p per share). Total shareholder return for the year was therefore 25.5% (2017: 13.9%) including the dividend payment and the net asset value increase.
The Group's equity investment portfolio movement during the year was as follows:
|
31 January 2017 valuation |
Acquisitions at cost |
Disposal proceeds |
Adjusted 31 January 2017 valuation |
31 January 2018 valuation |
|
£63.6m |
£21.7m |
£(25.0)m |
£60.3m |
£79.1m |
This equates to an increase in the equity portfolio valuation of 31.3% (2017: 22.1%).
The net asset value of £98.9m at 31 January 2018 represented a total increase in net asset value of £86.3m since the Group was originally formed in 1990 having adjusted for the £10.1m net proceeds raised on AIM and the original capital investment of £2.5m. The directors note that the Group has delivered an annual compound growth rate of 12.0% in Group net asset value after running costs, realisations, losses, distributions and corporation tax since 1990.
The consolidated profit on ordinary activities after taxation increased by 107% to £20.2m (2017: profit of £9.8m). The consolidated profit on ordinary activities before taxation was £16.5m (2017: profit of £12.2m), of which £18.1m was derived from unrealised gains on revaluing the equity investment portfolio in line with current market conditions, an increase of 62% on the previous year (2017: net unrealised gains of £11.2m). The Group's strategy is to cover expenses from the portfolio yield. On an underlying basis, including treasury returns, but excluding investment activity (unrealised gains on equity, a provision against deferred consideration receivable, a provision against loans receivable from investee companies and all underlying treasury portfolio movement), this was achieved with a pre-tax profit of £0.7m for the year (2017: £0.6m).
The Group invested £21.7m during the year – £14.4m in new equity investments and £7.3m for follow-on equity financing to its existing portfolio. In addition, the Group provided new loans for working capital to the portfolio of £15.6m. Repayment of loans by the portfolio amounted to £8.9m in the year. Cash funds (including treasury funds) at 31 January 2018 were £5.4m.
Overall, income from investments increased by 30.1% to £3.9m (2017: £3.0m). Dividend income increased by 95.4% over the year due to the strengthening performance of the portfolio companies, whilst income from loans fell by 13.4%, which was largely the result of the portfolio repaying debt in accordance with agreed repayment schedules. Fees were 41.4% higher mainly due to a number of one-off transaction fees received in 2018 as well as fees derived from new investments.
The Group realised two investments during the year, resulting in a combined profit on disposal (before tax) of £19.7m. The cash received from these realisations enabled the Group to invest in a number of new and existing opportunities throughout the year.
Operating expenses, including costs of making new investments, increased by 34.4% during the year to £4.1m (2017: £3.1m). Of this, £0.6m related to enhanced bonuses awarded to directors and staff under a newly created incentive scheme which is linked to the Group's growth in net asset value and was also based upon the £19.7m realised gain on successful sale of investments during the year. £0.2m related to expenses directly incurred in making new investments which, under IFRS, are expensed and £0.1m related to one-off costs incurred in the office move (which mainly comprised of rent, rates and service charge costs incurred for an overlapping period during the year whilst the Group's leases on its old and new office premises ran concurrently). Excluding these atypical expenses, overall expenses rose by £0.1m (3.2%) in proportion with managing a growing portfolio.
Due to favourable market conditions, the Group's treasury funds increased by 4.1% over the year (net of fund management charges) (2017: 8.6%).
Joint Share Ownership Plan (“JSOP”)
The Company intends to establish a new joint share ownership plan (the “2018 JSOP”) for eligible Group employees and senior executives to replace the 2014 JSOP, which matured in November. The purpose of the 2018 JSOP is to provide eligible employees of the Group with a joint beneficial ownership in and an opportunity to benefit from any possible appreciation in the value of Ordinary Shares in the Company subject to a suitable hurdle rate.
To implement the 2018 JSOP, the Group has established an employee benefit trust which intends to subscribe for up to 1,461,302 new Ordinary Shares, representing 5.00 per cent. of the existing issued ordinary share capital in the Company, at the time the awards are made.
Outlook
The Group is growing strongly, delivering consistent year on year returns to shareholders and is well-positioned to deal with any uncertainty arising from the UK's exit from the EU by April 2019. The Board looks forward to the year ahead with confidence.
Consolidated Financial Statements
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST JANUARY 2018
|
|
Notes |
2018 |
2017 |
||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
GAINS ON INVESTMENTS |
1 |
|
|
|
|
|
Realised gains on disposal of equity investments (net of costs) |
12,14 |
718 |
|
248 |
|
|
Provision against equity investments and loans |
|
(2,122) |
|
– |
|
|
Unrealised gains on equity investment revaluation |
12 |
18,119 |
|
11,243 |
|
|
|
|
|
16,715 |
|
11,491 |
|
INCOME |
|
|
|
|
|
|
Dividends |
1,25 |
1,538 |
|
787 |
|
|
Income from loans and receivables |
1,25 |
1,170 |
|
1,351 |
|
|
Fees receivable |
1,25 |
1,154 |
|
816 |
|
|
|
|
|
3,862 |
|
2,954 |
|
|
|
|
|
|
|
|
OPERATING INCOME |
2 |
|
20,577 |
|
14,445 |
|
|
|
|
|
|
|
|
Operating expenses |
|
(4,147) |
|
(3,086) |
|
|
Provision against deferred consideration |
|
(341) |
|
– |
|
|
|
2 |
|
(4,488) |
|
(3,086) |
|
|
|
|
|
|
|
|
OPERATING PROFIT |
|
|
16,089 |
|
11,359 |
|
|
|
|
|
|
|
|
Financial income |
2,4 |
582 |
|
467 |
|
|
Financial expenses |
2,3 |
(111) |
|
(36) |
|
|
Exchange movements |
2,8 |
(42) |
|
402 |
|
|
|
|
|
429 |
|
833 |
|
|
|
|
|
|
|
|
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION |
8 |
|
16,518 |
|
12,192 |
|
|
|
|
|
|
|
|
Income taxes |
9 |
|
3,731 |
|
(2,398) |
|
|
|
|
|
|
|
|
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION ATTRIBUTABLE TO EQUITY HOLDERS |
20 |
|
£20,249 |
|
£9,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
20 |
|
£20,249 |
|
£9,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share – basic and diluted (pence) |
10 |
|
69.3p |
|
33.5p |
|
|
|
|
|
|
|
The result for the year is wholly attributable to continuing activities.
CONSOLIDATED AND PARENT COMPANY STATEMENTS OF FINANCIAL POSITION
31ST JANUARY 2018
(Company Number: 05674962)
|
|
|
Group |
|
|
Company |
|
|
|
|
|
|
|
|
|
|
|
Notes |
2018 |
2017 |
|
2018 |
2017 |
|
|
|
£'000 |
£'000 |
|
£'000 |
£'000 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
Property, plant and equipment |
11 |
167 |
15 |
|
– |
– |
|
Investments – equity portfolio |
12 |
79,122 |
39,350 |
|
88,540 |
69,442 |
|
Investments – subsidiaries |
12 |
– |
– |
|
10,320 |
10,239 |
|
Investments – treasury portfolio |
13 |
2,756 |
5,230 |
|
– |
– |
|
Loans and receivables |
15 |
14,421 |
7,157 |
|
– |
– |
|
Deferred tax assets |
17 |
32 |
– |
|
– |
– |
|
|
|
96,498 |
51,752 |
|
98,860 |
79,681 |
|
CURRENT ASSETS |
|
|
|
|
|
|
|
Non-current assets as held for sale |
12 |
– |
24,217 |
|
– |
– |
|
Trade and other receivables |
16 |
2,393 |
5,062 |
|
– |
– |
|
Cash and cash equivalents |
|
2,648 |
7,327 |
|
8 |
1 |
|
TOTAL CURRENT ASSETS |
|
5,041 |
36,606 |
|
8 |
1 |
|
TOTAL ASSETS |
|
101,539 |
88,358 |
|
98,868 |
79,682 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
Deferred tax liabilities |
17 |
– |
(6,728) |
|
– |
– |
|
TOTAL NON-CURRENT LIABILITIES |
|
– |
(6,728) |
|
– |
– |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
Trade and other payables |
18 |
(1,472) |
(718) |
|
(1) |
– |
|
Corporation tax provision |
18 |
(1,200) |
(1,230) |
|
– |
– |
|
TOTAL CURRENT LIABILITIES |
18 |
(2,672) |
(1,948) |
|
(1) |
– |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
(2,672) |
(8,676) |
|
(1) |
– |
|
NET ASSETS |
|
£98,867 |
£79,682 |
|
£98,867 |
£79,682 |
|
|
|
|
|
|
|
|
|
CAPITAL AND RESERVES – EQUITY |
|
|
|
|
|
|
|
Called up share capital |
19 |
2,923 |
2,923 |
|
2,923 |
2,923 |
|
Share premium account |
20 |
9,398 |
9,381 |
|
9,398 |
9,381 |
|
Fair value reserve |
20 |
32,022 |
26,191 |
|
86,397 |
67,299 |
|
Reverse acquisition reserve |
20 |
393 |
393 |
|
– |
– |
|
Capital redemption reserve |
20 |
6 |
6 |
|
6 |
6 |
|
Capital contribution reserve |
20 |
7 |
5 |
|
– |
– |
|
Retained earnings |
20 |
54,118 |
40,783 |
|
143 |
73 |
|
SHAREHOLDERS' FUNDS – EQUITY |
20 |
£98,867 |
£79,682 |
|
£98,867 |
£79,682 |
|
|
|
|
|
|
|
|
|
Net asset value per share (pence) |
10 |
339p |
273p |
|
339p |
273p |
The Financial Statements were approved by the Board of Directors and authorised for issue on 11th June 2018
and signed on its behalf by:
B.P. Marsh & J.S. Newman
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST JANUARY 2018
|
|
Notes |
|
2018 |
|
2017 |
|
|
|
|
£'000 |
|
£'000 |
|
Cash (used by) / from operating activities |
|
|
|
|
|
|
Income from loans to investees |
|
|
1,170 |
|
1,351 |
|
Dividends |
|
|
1,538 |
|
787 |
|
Fees received |
|
|
1,154 |
|
816 |
|
Operating expenses |
|
|
(4,488) |
|
(3,086) |
|
Net corporation tax paid |
|
|
(3,076) |
|
(102) |
|
Purchase of equity investments |
12 |
|
(21,653) |
|
(8,278) |
|
Net proceeds from sale of equity investments |
12,14 |
|
24,935 |
|
10,253 |
|
Net (payments to) / repayments of loans by investee companies |
|
|
(6,695) |
|
6,046 |
|
Adjustment for non-cash share incentive plan |
|
|
88 |
|
86 |
|
Increase in receivables |
|
|
(7) |
|
(160) |
|
Increase in payables |
|
|
752 |
|
129 |
|
Depreciation and amortisation |
11 |
|
27 |
|
8 |
|
Net cash (used by) / from operating activities |
|
|
(6,255) |
|
7,850 |
|
|
|
|
|
|
|
|
Net cash from / (used by) investing activities |
|
|
|
|
|
|
Purchase of property, plant and equipment |
11 |
|
(179) |
|
(8) |
|
Purchase of treasury investments |
13 |
|
(35,858) |
|
(11,976) |
|
Net proceeds from sale of treasury investments |
13 |
|
38,784 |
|
10,652 |
|
Net cash from / (used by) investing activities |
|
|
2,747 |
|
(1,332) |
|
|
|
|
|
|
|
|
Net cash used by financing activities |
|
|
|
|
|
|
Financial income |
4 |
|
19 |
|
7 |
|
Dividends paid |
7 |
|
(1,098) |
|
(999) |
|
Payments made to repurchase company shares |
19,20 |
|
(54) |
|
(9) |
|
Net cash used by financing activities |
|
|
(1,133) |
|
(1,001) |
|
|
|
|
|
|
|
|
Change in cash and cash equivalents |
|
|
(4,641) |
|
5,517 |
|
Cash and cash equivalents at beginning of the year |
|
|
7,327 |
|
1,814 |
|
Exchange movement |
|
|
(38) |
|
(4) |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year† |
|
|
£2,648 |
|
£7,327 |
|
|
|
|
|
|
|
All differences between the amounts stated in the Consolidated Statement of Cash Flows and the Consolidated Statement of Comprehensive Income are attributed to non-cash movements.
†The above cash and cash equivalents balance excludes treasury portfolio funds which are referred to in Note 13. Including treasury portfolio balances of £2,756k, total available cash and treasury portfolio funds as at 31st January 2018 was £5,404k (as at 31st January 2017: £12,557k, including £5,230k of treasury portfolio funds).
PARENT COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST JANUARY 2018
|
|
Notes |
|
2018 |
|
2017 |
|
|
|
|
£'000 |
|
£'000 |
|
Cash from operating activities |
|
|
|
|
|
|
Dividends received from subsidiary undertakings |
|
|
1,154 |
|
1,008 |
|
Decrease in payables |
|
|
– |
|
(15) |
|
Net cash from operating activities |
|
|
1,154 |
|
993 |
|
|
|
|
|
|
|
|
Net cash used by financing activities |
|
|
|
|
|
|
Increase in amounts owed to Group undertakings |
|
|
5 |
|
15 |
|
Dividends paid |
7 |
|
(1,098) |
|
(999) |
|
Payments made to repurchase company shares |
19,20 |
|
(54) |
|
(9) |
|
Net cash used by financing activities |
|
|
(1,147) |
|
(993) |
|
|
|
|
|
|
|
|
Change in cash and cash equivalents |
|
|
7 |
|
– |
|
Cash and cash equivalents at beginning of the year |
|
|
1 |
|
1 |
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year |
|
|
£ 8 |
|
£ 1 |
|
|
|
|
|
|
|
CONSOLIDATED AND PARENT COMPANY STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST JANUARY 2018
|
|
Group |
Company |
||
|
|
2018 |
2017 |
2018 |
2017 |
|
|
|
|
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
Opening total equity |
79,682 |
70,812 |
79,682 |
70,812 |
|
Comprehensive income for the year |
20,249 |
9,794 |
20,252 |
9,794 |
|
Dividends paid |
(1,098) |
(999) |
(1,098) |
(999) |
|
Repurchase of company shares |
(54) |
(9) |
(54) |
(9) |
|
Share incentive plan |
88 |
84 |
85 |
84 |
|
TOTAL EQUITY |
£98,867 |
£79,682 |
£98,867 |
£79,682 |