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REG-Jarvis PLC Annual Financial Report - Part 7Released: 14/07/2009
Part 7 : For preceding part double-click [nRn6N5989V]
Experience (losses) / gains on scheme assets (£m) (5.6) (1.8) (1.3) 1.9 0.7
Percentage of scheme assets (%) (22.2) (6.2) (3.9) 5.9 2.5
Experience losses on scheme liabilities (£m) - (1.2) - - (1.0)
Percentage of the present value of scheme liabilities - (2.7) - - (2.1)
(%)
Total amount recognised in the Consolidated Statement of Recognised Income and Expense 4.6 1.9 (0.3) 2.4 (3.2)
(£m)
Percentage of the present value of scheme liabilities 13.1 4.3 (0.6) 4.8 (6.6)
(%)
The cumulative amount of actuarial gains and losses since 1 April 2004 recognised in the Consolidated Statement of Recognised Income and Expense is £75.7m (2008: £40.5m).
15 Inventories
2009 2008
£m £m
Raw materials and consumables 0.7 1.1
Work in progress 0.3 0.8
Finished goods and goods for resale 1.2 1.4
2.2 3.3
The above balances include an impairment provision of £0.2m (2008: £0.3m). The replacement cost of inventories is not considered different to the amounts disclosed above.
16 Trade and other receivables
2009 2008
£m £m
Trade receivables 10.5 16.5
Amounts due from customers on contracts 42.4 62.8
Other receivables 10.9 9.2
Prepayments and accrued income 5.7 9.5
69.5 98.0
17 Construction contracts
Contracts in progress at the balance sheet date are analysed below.
2009 2008
£m £m
Due from customers for contract work, included in trade and other receivables 0.5 0.7
Due to customers for contract work, included in trade and other payables - -
0.5 0.7
The aggregate amount of costs incurred plus recognised profits (less recognised losses) for all contracts in progress at the balance sheet date was £0.7m (2008: £8.1m).
18 Borrowings
18.1 Summary of borrowings
Fixed Floating 2009 Fixed Floating 2008
£m £m Total £m £m Total
£m £m
Current
Bank loans and loan notes - 27.0 27.0 - 10.1 10.1
Other loans 0.6 - 0.6 0.5 - 0.5
0.6 27.0 27.6 0.5 10.1 10.6
Non-current
Bank loans and loan notes - - - - 31.5 31.5
Other loans 0.1 - 0.1 0.1 - 0.1
0.1 - 0.1 0.1 31.5 31.6
Total borrowings 0.7 27.0 27.7 0.6 41.6 42.2
All borrowings are denominated in sterling.
18.2 Maturity profile of borrowings
Other loans Bank loans and loan notes 2009 Other loans Bank loans and loan notes 2008
Total Total
£m £m £m £m £m £m
Not later than one year 0.6 27.0 27.6 0.5 10.1 10.6
Between one and two years 0.1 - 0.1 0.1 31.5 31.6
Between two and five years - - - - - -
0.7 27.0 27.7 0.6 41.6 42.2
18.3 Borrowing facilities
The Group's floating rate borrowings relate to its committed facility of £60.0m arranged by Burdale Financial Limited, the
secured asset-based lending subsidiary of the Bank of Ireland, secured by way of a fixed and floating charge on the Group's
assets, in particular its plant, machinery and receivables under its rail renewal and plant hire contracts. Subsequent to the
year end the Group negotiated a £50.0m facility and extended the terms of its borrowings to 31 January 2011.
At 31 March 2009 the Group had available £33.4m of undrawn borrowing facilities (2008: £20.2m).
18.4 Effective interest rates
The effective interest rates on the Group's interest bearing borrowings at the balance sheet
date are shown below.
2009 2008
% %
Loan notes and bank loans 5.1 11.0
Other loans 13.4 12.2
19 Trade and other payables
2009 2008
£m £m
Current
Trade payables 33.8 37.6
Other payables 7.4 8.5
Accruals and deferred income 31.1 33.1
Advance payments on contracts 0.5 1.1
Other taxation and social security 9.9 15.8
82.7 96.1
Non-current
Other payables 0.4 0.8
0.4 0.8
20 Provisions
Onerous leases Restructuring Other Total
£m £m £m £m
At 3 April 2007 1.0 3.6 2.7 7.3
Additional provisions - 1.0 1.6 2.6
Provisions utilised (0.6) (2.3) (0.5) (3.4)
Businesses disposed of - - (0.5) (0.5)
At 31 March 2008 0.4 2.3 3.3 6.0
Additional provisions - 14.2 0.6 14.8
Provisions utilised (0.3) (1.2) (2.4) (3.9)
At 31 March 2009 0.1 15.3 1.5 16.9
Disclosed within:
Current liabilities 0.1 15.3 1.5 16.9
Non-current liabilities - - - -
0.1 15.3 1.5 16.9
Provisions represent the best estimate of obligations at the balance sheet date. The provision for onerous leases has been
calculated at the net present value of rent payable less rents receivable (having taken account of potential void years and
lease incentives) up to the end of the lease. Allowance has been made for empty rates and agents' fees.
The restructuring provision principally relates to the restructuring of the Rail and Plant businesses, following a significant
reduction in demand by Network Rail for these services. The other provisions relate to liabilities in respect of contracts and
third party claims and represent the net present value of the expected cash outflow in relation to these obligations.
21 Financial instruments
There were no derivative financial instruments outstanding at the balance sheet date.
Non-derivative financial instruments consist of cash at bank, short term deposits, trade and other receivables, bank overdrafts, borrowings and trade and other payables. The fair value of these
approximate to the carrying value in the balance sheet. The fair value of the non-current borrowings is their net present value computed at the market rate that would arise if the commitment
had been entered into at the balance sheet date. The fair value of all other non-derivative financial instruments approximate to their carrying values because of the short term maturity of
these instruments. A summary of the carrying value of financial assets and liabilities held by the Group is given below.
2009 2008
£m £m
Financial assets (classified as loans and receivables)
Trade and other receivables 63.8 88.5
Cash and cash equivalents 6.2 3.4
70.0 91.9
Financial liabilities (classified as held at amortised cost)
Trade and other payables 52.0 63.8
Borrowings 27.7 42.2
79.7 106.0
The maturity profile of the Group's financial liabilities is detailed below.
Borrowings Trade and other payables
£m £m
31 March 2009
Due within one year 27.6 51.6
Due between one and two years 0.1 0.4
Between two and five years - -
27.7 52.0
31 March 2008
Due within one year 10.6 63.0
Due between one and two years 31.6 0.4
Between two and five years - 0.4
42.2 63.8
Capital risk management
The Group manages its capital to ensure that entities of the Group will be able to continue as a going concern, whilst maximising the return to stakeholders through optimisation of the debt and
equity balance. The capital structure of the Group consists of cash and cash equivalents and equity attributable to holders of the parent, comprising issued share capital and reserves as
disclosed in the accounting policies. The Group is not subject to external imposed capital requirements, other than the minimum capital requirements and duties regarding reduction of capital,
as imposed by the Companies Act 2006 for all Public Limited Companies.
Financial risk management
The Group has a centralised Treasury function whose primary role is to manage the financial risks that the Group is exposed to, within parameters approved by the Group Board. These risks
include interest rate risk, liquidity risk, and credit risk. The Group does not undertake any material transactions in foreign currencies.
Interest rate risk
The Group's floating rate borrowings relate to its Burdale Financial Limited banking facilities, further details of which are given in Note 18. These borrowings are subject to floating rates of
interest linked to the LIBOR. A one percentage point rise in interest rates would increase the annual net interest charge on these borrowings by approximately £0.3m.
Liquidity risk
The Group manages its liquidity risk by maintaining sufficient banking facilities and continuously monitoring its forecast and actual cash flows. Details of undrawn borrowing facilities, and a
maturity profile of the Group's borrowings are given in Note 18.
Credit risk
Credit risk arises on financial instruments held by the Jarvis Group, being trade receivables and cash and cash equivalents. Policies and procedures are in place to ensure that credit is only
given to customers that have an appropriate credit history and cash is deposited with highly credit-rated authorised counterparties based on ratings issued by the major rating agencies. A
significant proportion of the Group's trading is with one customer, Network Rail, which gives rise to a concentration of credit risk.
Trade receivables are included in the balance sheet net of provision for impairment, estimated by the Group's management on an individual customer by customer basis. This is based on prior
experience and their assessment of the current economic environment. The ageing of trade receivables and provision for impairment are detailed in the table below. There are no reasons to
believe that those debts past due but not impaired are not recoverable.
Gross receivables 2009 Impairment Gross receivables 2008 Impairment
2009 2008
£m £m £m £m
Not past due 6.1 - 8.8 -
Past due up to three months 1.4 - 4.1 -
Past due three to six months 0.3 - 1.7 -
Past due six to twelve months 1.0 - 0.9 -
Past due more than 12 months 2.0 (0.3) 1.4 (0.4)
10.8 (0.3) 16.9 (0.4)
The movement in the provision for impairment of trade receivables during the year is shown below.
2009 2008
£m £m
Provision at start of the year 0.4 1.9
Increase in provision during the year - 0.1
Provision utilised during the year (0.1) (1.6)
Provision at end of the year 0.3 0.4
22 Share capital
22.1 Authorised
2009 2009 2008 2008
Number £m Number £m
Ordinary shares of 5p each 340,000,000 17.0 340,000,000 17.0
22.2 Allotted, called up and fully paid
Number £m
At 31 March 2009 and 31 March 2008 213,292,874 10.7
At 3 April 2007 204,379,497 10.2
Shares authorised/issued in the year 8,913,377 0.5
At 31 March 2008 213,292,874 10.7
23 Reconciliation of movement in shareholders' equity
Share Share Special Capital redemption Other Accumulated Total
capital premium reserve reserve reserve losses equity
£m £m £m £m £m £m £m
At 1 April 2008 10.7 63.3 3.7 7.2 89.7 (173.1) 1.5
Loss for the year - - - - - (9.6) (9.6)
Actuarial losses on defined benefit pension schemes - - - - - (35.8) (35.8)
Tax in respect of items taken directly to equity - - - - - 10.0 10.0
Equity settled share-based payments - - - - - 0.1 0.1
At 31 March 2009 10.7 63.3 3.7 7.2 89.7 (208.4) (33.8)
At 3 April 2007 10.2 581.4 - 7.2 89.7 (702.8) (14.3)
Profit for the year - - - - - 11.1 11.1
Transfer between reserves - capital reduction - (520.7) 3.7 - - 517.0 -
Actuarial gains on defined benefit pension schemes - - - - - 1.5 1.5
Shares issued in connection with exercise of warrants 0.5 2.6 - - - - 3.1
Equity settled share-based payments - - - - - 0.1 0.1
At 31 March 2008 10.7 63.3 3.7 7.2 89.7 (173.1) 1.5
The special reserve relates to the High Court approved capital reduction duirng the year ended 31 March 2008.
The capital redemption reserve arose from the Placing and Open Offer completed on 29 September 2005, when £7.2m of ordinary shares were cancelled.
The other reserve arose on the acquisition of Streamline Holdings plc in the year ended 31 March 1998, the Company taking advantage of merger relief under section 131 of the Companies Act 1985.
24 Share-based payments
The Group has appraised its share options granted on or after 7 November 2002 and not vested at 1 April 2005, in accordance with IFRS 1 and IFRS 2. In the year ended 31 March 2009 the amount charged to the Consolidated Income Statement in relation to share-based payments totalled £0.1m (2008: £0.1m).
With the exception of the Savings Related Share Option Scheme (SAYE scheme) there are share price performance conditions applicable to each of these schemes, with all schemes requiring continuous employment.
More to follow, for following part double-click [nRn8N5989V]
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disclaimer | Privacy statement | Jarvis plc – Registered in England. Registered office: Meridian House, The Crescent, York, YO24 1AW. Registered number: 2238084