MS INTERNATIONAL plc
Unaudited Interim Condensed
Group Financial Statements
27th October, 2018
EXECUTIVE DIRECTORS
Michael Bell
Michael O'Connell
Nicholas Bell
NON EXECUTIVE Roger Lane-Smith
David Pyle David Hansell
SECRETARY David Kirkup
REGISTERED OFFICE
Balby Carr Bank
Doncaster
DN4 8DH
England
PRINCIPAL OPERATING DIVISIONS
Defence
Forgings
Petrol Station Branding Petrol Station Superstructures
Chairman's Statement
For the first half year ended 27th October 2018, profit before taxation increased to £3.19m (2017 - £1.64m), on revenue of £37.74m (2017 - £34.63m). Earnings per share amounted to 15.2p (2017 - 7.8p).
It was a period of admirable progress for the Group overall, with operating divisions confronting changing market conditions with timely and appropriate action to ensure they took advantage of opportunities as they arose.
That determined approach to their respective markets is backed by the Group's strategy of continued investment in each of the divisions to ensure they are at their most effective. Such investment remains a priority and the rewards of this approach are evident in our latest results. Despite that ongoing investment, our long-established policy and commitment to fostering and maintaining a robust balance sheet has been validated with further growth in net cash to £16.65m, compared to £15.87m at the last year end.
Notable and most encouraging performances were achieved by the 'Forgings'; 'Petrol Station Superstructures' and 'Petrol Station Branding', divisions. However, our 'Defence' division - as a constituent part of the depressed UK defence equipment industry - is contending with the consequences of a seriously subdued home market, aggravated by a persistent lack of any real clarity, as to future demand.
The 'Defence' division is countering the effect of the challenges to the domestic market by focusing efforts on its international marketing activities in addition to our own investment in private venture funding of the design and development of both our new and existing weapon systems to meet the varied requirements and perceived opportunities outside of the UK. It is an essential, if costly strategy, but one which should enrich our international presence and reputation leading to enhanced sales.
The 'Forgings' division is making very good progress, reflecting the increasing benefits of a much improved inter-company supply chain between the UK and our maturing production capability at the new manufacturing and marketing facility in the United States. Operations in South America are holding their own at a time when some rather problematic national economic circumstances are prevailing in that region of the world.
The 'Petrol Station Superstructures' division is reaping the benefits of a marked recovery in both UK and mainland European markets. This division remains very well positioned to take full advantage of the growing number of opportunities coming through.
The 'Petrol Station Branding' division has continued to prosper and, in particular, grow the business across both an expanding customer base and additional regional markets. As a result, the division is making a welcome and substantial contribution to the Group's financial performance, pleasingly exceeding our expectations since the acquisition and subsequent expansion of the division from its Netherlands base into both Germany and the UK.
All such matters considered, the Board has declared a maintained interim dividend per share of 1.75p (2017-1.75p) payable to shareholders on the 4th January 2019.
Michael Bell
3rd December 2018
MS INTERNATIONAL plc Michael Bell
Shore Capital (Nominated Adviser and Broker)
Patrick Castle
Tel: 01302 322133
Tel: 020 7408 4090
Daniel Bush
Independent review report to MS INTERNATIONAL plc
Introduction
We have reviewed the condensed set of financial statements in the half-yearly financial report for the 26 weeks ended 27 October 2018 which comprises the Interim condensed consolidated income statement, the Interim condensed consolidated statement of comprehensive income, the Interim condensed consolidated statement of financial position, the Interim consolidated statement of changes in equity, the Interim consolidated cash flow statement and the related notes. We have read the other information contained in the half-yearly financial report which comprises only the Chairman's Statement and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company, as a body, in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the Company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company as a body, for our review work, for this report, or for the conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. As disclosed in note 2, the annual financial statements of the group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express a conclusion to the Company on the condensed set of financial statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the 26 weeks ended 27 October 2018 is not prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants Sheffield
3 December 2018