meyer plc - Nigerian Stock Exchange

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Oct 28, 2016 - adhesives/tiles, application of paints and investment property. ..... Nigeria (AMCON) was a loan from Uni
Nine (9) Months Ended 30/09/2016

MEYER PLC UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER, 2016

PLOT 34, MOBOLAJI JOHNSON AVENUE, OREGUN INDUSTRIAL ESTATE, ALAUSA – IKEJA, LAGOS. http://www.meyerpaints.com

1

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 GROUP 30/09/2016

30/09/2015

30/09/2016

30/09/2015

N'000

N'000

N'000

N'000

Note Continuing operations Revenue Cost of sales

COMPANY

5

837,192

836,963

837,192

836,963

5.1

(511,059)

(484,760)

(511,059)

(484,760)

326,133

352,204

326,133

352,204

9,745

37,608

9,745

37,608

Gross profit Other operating income

7

Selling & Distribution expenses

8

(156,013)

(172,425)

(156,013)

(172,425)

Administrative expenses

9

(228,856)

(223,174)

(225,736)

(214,485)

(48,992)

(5,787)

(45,872)

2,902

Profit/ (loss) from operating activities Finance Income

10(i)

-

1,680

-

1,680

Finance costs

10(ii)

(18,716)

(67,852)

(18,716)

(67,852)

(67,708)

(71,959)

(64,588)

(63,270)

(4,017)

(3,785)

(4,017)

(3,785)

(71,725)

(75,745)

(68,605)

(67,056)

Profit/(Loss) before tax Taxation (Provision)

12

Profit /(Loss) for the period Other comprehensive income, net of income tax

Items that will not be reclassified subsequently to profit or loss: Remeasurement of Defined benefit obligation

Deferred tax credit

-

Total comprehensive loss for the period

-

(71,725)

(75,745)

(68,605)

(67,056)

Owners of the Company

(71,600)

(75,397)

(68,605)

(67,056)

Non-controlling interests

(125)

(348)

(71,725)

(75,745)

(68,605)

(67,056)

(71,600)

(75,397)

(68,605)

(67,056)

(Loss)/Profit for the period attributable to: -

Total comprehensive (loss)/income for the period attributable to: Owners of the Company Non-controlling interests

-

124.80

(348)

-

(71,725)

(75,745)

(68,605)

(67,056)

(24.61)

(25.99)

(23.54)

(20.63)

Earnings per share Basic and diluted earnings per share

13

2

3

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 The Group Share premium N

Share capital N Balance at 1 January 2015 Profit for the period Adjustment for Non-controlling interest Total comprehensive Income

145,745

Balance at 31 December 2015

145,745

Profit for the period Total comprehensive Income Balance at 30 September 2016

-

145,745

Retained earnings N

10,485

472,729 53,674

-

Non controlling interest N

Total N

53,674

3,070 (814) 400 (414)

632,029 52,860 400 53,260

10,485

526,403

2,656

685,289

-

(71,600) (71,600)

10,485

454,803

2,531

Retained earnings N

Non controlling interest N

(125) (125)

(71,725) (71,725) 613,564

The Company Share premium N

Share capital N Balance at 1 January 2015 Share of capital Profit for the period Total comprehensive income Balance at 31 December 2015 Profit for the period Total comprehensive Income Balance at 30 September 2016

145,745

145,745

145,745

4

Total N

10,485

408,640

-

73,230 73,230

-

564,870 73,230 73,230

10,485

481,870

-

638,100

-

(68,605) (68,605)

-

(68,605) (68,605)

10,485

413,265

-

569,495

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS CASHFLOW STATEMENT FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 GROUP 30/09/2016 31/12/2015 N'000 N'000 Profit for the period (67,708) 52,860 Adjustments for: Depreciation of property, plant and equipment Finance cost Interest received Gains on restructuring Adjustment of non controlling interest Profit on disposal of property, plant and equipment

34,465 18,716 (337)

COMPANY 30/09/2016 31/12/2015 N'000 N'000 (64,588) 73,230

51,498 92,401 (1,850) (101,365) 400 (1,863)

34,465 18,716 (337)

51,498 92,401 (1,850) (101,365) (1,863)

Operating cash flows before movements in working capital

(14,864)

92,081

(11,744)

112,051

(Increase)/decrease in inventories Decrease/(increase) in trade and other receivables (Increase)/decrease in other assets Increase/(decrease) in trade and other payables Increase / (decrease) in current tax liabilities Increase/(decrease) in finance lease Increase/(decrease) in employee benefit

(50,655) 74,479 (9,962) (207) (4,716) (1,470) (7,621) (2,604) (10,225)

2,179 (31,040) (49,418) 7,599 (878) (3,329) 17,194 (5,327) 11,867

(50,655) 74,479 (9,962) (3,327) (4,716) (1,470) (7,619) (2,604) (10,222)

2,179 (31,040) (69,105) 7,314 (878) (3,329) 17,192 (5,327) 11,865

(1,914) 610 (1,304)

(3,704) 1,955 1,850 101

(1,914) 610 (1,304)

(3,704) 1,955 1,850 101

Cashflow from financing activities Finance cost Short-term loan obtained Longterm paid Net cash generated by financing activities

(18,716) 20,000 (23,665) (22,381)

(92,401) 92,313 (110,343) (110,431)

(18,716) 20,000 (23,665) (22,381)

(92,401) 92,313 (110,343) (110,431)

Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the period

(33,909) 35,779 1,870

(98,463) 134,242 35,779

(33,907) 35,593 1,686

(98,465) 134,058 35,593

Income taxes paid Net cash generated by operating activities Cashflow from investing activities Purchase of property, plant and equipment Proceeds from sale of Property, plant and equipment Interest received Net cash generated by investing activities

5

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016

1.

The Group The group comprises of Meyer Plc (the Company) and its subsidiary - DN Meyer Construction Limited.

The Company - Corporate information and principal activities Meyer Plc is a manufacturing Company incorporated in Nigeria on the 20th of May 1960. The Company manufactures and markets paints. The shares of the Company are held 30% by Citiprops Limited, 19% by Bosworth, 9% by Osa Osunde and 42% by Nigerian citizens. Its registered office is at Plot 34, Mobolaji Johnson Avenue, Oregun Industrial Estate, Alausa Ikeja, Lagos.

6

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 2 Basis of preparation a Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and the requirements of the Companies and Allied Matters Act, CAP C20 LFN, 2004. Where the provisions of IFRS are in conflict with the requirements of the Companies and Allied Matters Act, CAP C20, 2004, IFRS supersedes. The financial statements were authorised by the Board of Directors on 14 June 2016.

b.

Basis of measurement The group financial statements have been prepared on the historical cost basis except for the following: property, plant and equipment is measured at revalued amount.

c.

Functional and presentation currency The Company and group functional and presentation currency is the Nigerian naira. The financial statements are presented in Nigerian Naira and have been rounded to the nearest thousand except otherwise stated.

d.

Use of estimates and judgement

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates and judgments. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4.

7

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 5

Revenue

Paints Application of paints

5.1

COMPANY 30/09/2016 30/09/2015 N'000 N'000 802,039 807,253 35,153 29,710 837,192 836,963

30/09/2016 N'000 487,571 23,488 511,059

30/09/2016 N'000 487,571 23,488 511,059

Cost of sales An analysis of the group company’s cost of sales is as follows:

Paints Application of paints

6

GROUP 30/09/2016 30/09/2015 N'000 N'000 802,039 807,253 35,153 29,710 837,192 836,963

30/09/2015 N'000 467,327 17,433 484,760

30/09/2015 N'000 467,327 17,433 484,760

Segment Reporting Products and services from which reportable segments derive their revenues The determination of the company operating segments is based on the organisation units for which information is reported to the management. The company has two areas of revenue generation: Paints and Services (Application). Revenue are primarily generated from the sale of Paints and Services rendered through application of paints. Certain headquarter activities are reported as 'Corporate'. These consist of corporate headquarters including the Corporate Executive Committee. Information reported to the entity's Chief Executive for the purposes of resource allocation and assessment of segment performance is focused on the category of products for each type of activity. The principal categories are sale of paints, adhesives/tiles and application of paints and investment property . The entity’s reportable segments under IFRS 8 are therefore as follows: Paints This segment is involved in the production of diverse paints products of premium class in their different industries. Certain headquarter activities are reported as 'Corporate'. These consist of corporate headquarters including the Corporate Executive Committee. Information reported to the entity's Chief Executive for the purposes of resource allocation and assessment of segment performance is focused on the category of products for each type of activity. The principal categories are sale of paints, adhesives/tiles, application of paints and investment property. The entity’s reportable segments under IFRS 8 are therefore as Segment Revenue and results 30/09/2016 N'000 802,039 35,153

30/09/2015 N'000 807,253 29,710

30/09/2016 N'000 802,039 35,153

30/09/2015 N'000 807,253 29,710

837,192

836,963

837,192

836,963

Finance Income Finance costs Profit/(Loss) before tax Tax (Provision)

9,745 (18,716) (67,708) (4,017)

37,608 (67,852) (71,959) (3,785)

9,745 (18,716) (64,588) (4,017)

37,608 (67,852) (63,270) (3,785)

Profit /(Loss) for the period

(71,725)

(75,745)

(68,605)

(67,056)

Paints Application of paints

Segment Results

Segment Accounting Policies The accounting policies of the reportable segments are the same as the company's accounting policies described in note. Segment profit represents the gross profit earned by each segment without allocation of general operating expenses, other gains and losses recognised on investment income, other gains and losses as well as finance costs. This is the measure reported to the Chief Operating Decision Maker for the purpose of resource allocation and assessment of segment performance. Business and geographical segments The company operates in all geographical areas in the country. Segment assets and liabilities All assets and liabilities are jointly used by the reportable segments.

8

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 GROUP 7

Profit on disposal of property, plant and equipment Sundry income Use of facilities, rent, sale of empty drums & debt recovered

8

10

30/09/2016 N'000 337 9,408

30/09/2015 N'000 1,961 1,680 35,647

30/09/2016 N'000 337 9,408

30/09/2015 N'000 1,961 1,680 35,647

9,745

39,288

9,745

39,288

30/09/2016 N'000 26,884 60,241 1,454 44,032 4,946 714 9,795 7,947 156,013

30/09/2015 N'000 26,891 69,662 2,372 46,873 5,408 991 10,733 9,496 172,425

30/09/2016 N'000 26,884 60,241 1,454 44,032 4,946 714 9,795 7,947 156,013

30/09/2015 N'000 26,891 69,662 2,372 46,873 5,408 991 10,733 9,496 172,425

N'000

N'000

N'000

N'000

Selling and distribution expenses

Carriage inward Basic Overtime Fringe costs Christmas bonus NSITF Pension scheme Casual labour

9

Administrative expenses Staff Canteen expenses Medical expenses Maintenance mechanical Security guards expenses Computer rental expenses Building rents & rates Repairs & maintenance general Depreciation -land & building Depreciation - vehicles Depreciation - office equipment Depreciation - furniture and fittings Advert & publicity expenses Fuel & lubricants Vehicle expenses Travelling Directors fees & board expense Insurance expenses Legal & professional Printing & photocopy Telephone AGM expenses Courier/postage Audit fees Performance cost Clearing licence renewal General stores & consumables Technical Management Fee Entertainment Other expenses

11,386 3,739 2,839 7,961 3,995 7,048 1,351 16,711 6,535 1,018 816 2,823 3,510 4,686 8,406 17,971 3,010 8,151 984 1,683 5,204 253 3,750 39,593 1,749 4,388 40,838 1,222 17,235

11,210 5,891 3,309 10,220 4,091 8,355 4,439 16,711 9,991 1,134 808 1,947 4,107 5,447 10,235 16,350 3,916 12,370 1,065 4,323 2,333 558 7,207 43,730 3,677 5,969

228,856

(ii)

11

11,210 5,891 3,309 10,220 4,091 8,355 4,439 16,711 9,991 1,134 808 1,947 4,107 5,447 9,822 16,350 3,916 4,620 1,065 4,323 2,333 558 6,682 43,730 3,677 5,969

1,461 22,320

11,386 3,739 2,839 7,961 3,995 7,048 1,351 16,711 6,535 1,018 816 2,823 3,510 4,686 8,406 17,971 3,010 5,031 984 1,683 5,204 253 3,750 39,593 1,749 4,388 40,838 1,222 17,235

223,174

225,736

214,485

1,461 22,320

Finance income and Cost 30/09/2016 N'000

(i)

COMPANY

Other operating Income

Finance income: Interest received on bank deposit

30/09/2015 N'000 -

30/09/2016 N'000

1680

30/09/2015 N'000 -

1680

Finance Cost Interest on bank overdraft and loans Interest on finance lease

18,716 -

67,714 138

18,716 -

67,714 138

Total interest expenses

18,716

67,852

18,716

67,852

Profit /(Loss)for the period has been arrived at after charging/(crediting) the followings: 30/09/2016 N'000 Depreciation and amortisation expense: ` Depreciation of property, plant and equipment 34,465

Profit on disposal of property, plant and equipment Auditors remuneration Staff cost Director's fees Director's remuneration and allowance Interest on loans and overdrafts

9

30/09/2015 N'000

30/09/2016 N'000

30/09/2015 N'000

38,828

34,465

38,828

34,465

38,828

34,465

38,828

337 3,750 176,584 563 17,409 18,716

1,961 8,661 197,821 469 11,901 67,852

337 3,750 176,584 563 17,409 18,716

1,961 8,136 197,781 469 15,881 67,852

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 12 12.1

GROUP

Tax expense Per profit and loss account Income tax payable on the results for the period

30/09/2016 N'000

Current tax Current tax expense in respect of the current year: Income tax Education tax

Total income tax expense recognised in current year for continuing operations

12.2

COMPANY

30/09/2015 N'000

30/09/2016 N'000

30/09/2015 N'000

4,017 4,017

3,488 298 3,785

4,017 4,017

3,488 298 3,785

4,017

3,785

4,017

3,785

Per statement of financial position 30/09/2016 N'000 12,152 4,017 (2,604) (4,710)

At 1 January Charged for the period Payments during the year Adjustments -witholding tax utilised

8,855

31/12/2015 N'000 9,880 7,599 (641) 4,686 12,152

30/09/2016 N'000 11,867 4,017 (2,604) (4,710) 8,570

31/12/2015 N'000 9,880 7,314 (641) (4,686) 11,867

12.3 Deferred taxation GROUP 30/09/2016 31/12/2015 N'000 N'000 515,687 515,687 (254,538) (254,538)

Deferred tax liabilities Deferred tax assets

261,149

261,149

COMPANY 30/09/2016 31/12/2015 N'000 N'000 515,687 515,687 (254,538) (254,538) 261,149

261,149

Deferred tax GROUP 30/09/2016 31/12/2015 N'000 N'000

COMPANY 30/09/2016 31/12/2015 N'000 N'000

Movement at a glance Deferred tax (liabilities)/assets: At 1 January

261,149 261,149

At 30 September

261,149 261,149

261,149 261,149

261,149 261,149

The tax rate used is the corporate tax rate of 30% and 2% education payable by corporate entities in Nigeria on taxable profits under tax law in the country.

10

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 GROUP 13

13.1

COMPANY

Earnings/(Loss) per share Earnings/(Loss) per share are calculated on the basis of profit after taxation and the number of issued and fully paid ordinary shares of each financial year. 30/09/2016 N

30/09/2015 N

30/09/2016 N

Basic/diluted (loss)/earnings per share

(24.61)

(25.99)

(23.54)

(20.63)

Total basic/diluted (loss)/earnings per share

(24.61)

(25.99)

(23.54)

(20.63)

Basic/diluted earnings per share The earnings/(loss) and weighted average number of ordinary shares used in the calculation of basic earnings per share are: 30/09/2016 N'000 Earnings from continuing operations Profit / (Loss) for the period attributable to owners of the Company Number of shares Number of ordinary shares for the purposes of basic earnings per share Profit/(Loss) per share (Kobo) - Basic

30/09/2015 N'000

30/09/2016 N'000

(71,725)

(75,745)

(68,605)

291,490,000

291,490,000

291,490,000

(24.6)

(25.99)

(23.54)

The denominators for the purposes of calculating both basic earnings per share is based on issued and paid ordinary shares of 50 kobo each. 13.2

30/09/2015 N

Impact of changes in accounting policies There were no changes in the company’s accounting policies during the period that impacted earnings per share.

11

30/09/2015 N'000

(67,056)

291,490,000 (23.00)

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 14

Property, plant and equipment

The Group Buildings N'000 Cost At 1 January 2015 Additions Disposals

Plant & machinery N'000

Office equipment N'000

Furniture & fittings N'000

Motor vehicles N'000

Total N'000

1,764,897 1,764,897

222,307 2,295 (18,217)

31,016 850 (152)

13,389 559 -

210,084 (7,954)

2,241,693 3,704 (26,323)

206,385 910

13,948

1,764,897

207,295

31,714 734 (522) 31,926

13,948

202,130 270 (1,376) 201,024

2,219,074 1,914 (1,898) 2,219,090

134,160 22,281 -

194,392 13,515 (18,217)

28,289 1,474 (60)

11,309 1,093 -

172,043 13,135 (7,954)

156,441.00 16,711

189,690 9,386

12,402 816

173,152

199,076

29,703 1,018 (480) 30,241

13,218

177,224 6,535 (1,376) 182,383

540,193 51,498 (26,231) 565,460 34,465 (1,856) 598,069

Carrying amount At 30th September 2016

1,591,745

8,219

1,685

730

18,641

1,621,020

At 31 December 2015

1,608,456

16,695

2,011

1,546

24,906

1,653,614

At 31 December 2015 Additions Disposals At 30th September 2016 Accumulated depreciation and impairment At 1 January 2015 Charge for the year Disposals At 31 December 2015 Charge for the year Eliminated on disposals At 30th September 2016

The Company Leasehold Property N'000

Plant & machinery N'000

Office equipment N'000

Furniture & Fittings N'000

Motor Vehicles N'000

Total N'000

Cost At 1 January 2015 Additions Disposals

1,764,897 -

213,809 2,294 (18,217)

31,016 850 (152)

13,389 559 -

210,084 (7,954)

2,233,195 3,703 (26,323)

At 31 December 2015 Additions Disposals At 30th September 2016

1,764,897 1,764,897

197,886 910 198,796

31,714 734 (522) 31,926

13,948 13,948

202,130 270 (1,376) 201,024

2,210,575 1,914 (1,898) 2,210,591

134,160 22,281 156,441 16,711 173,152

185,893 13,515 (18,217) 181,191 9,386 190,577

28,289 1,474 24,917 (60) 54,620 1,018 (480) 55,158

11,308 1,093 (24,917) (12,516) 816 (11,700)

172,043 13,135 (7,954) 177,224 6,535 (1,376) 182,383

531,693 51,498 (26,231) 556,960 34,465 (1,856) 589,569

Carrying amount At 30th September 2016

1,591,745

8,219

(23,232)

25,648

18,641

1,621,021

At 31 December 2015

1,608,456

16,695

(22,906)

26,464

24,906

1,653,615

Accumulated depreciation and impairment At 1 January 2015 Charge for the year Reclassification Eliminated on disposals At 31 December 2015 Charge for the year Eliminated on disposals At 30th September 2016

14.1 Impairment losses recognised in the year There were no impairment losses recognised during the year. 14.2 Assets pledged as security Buildings with a carrying amount of N1.59 billion (2015:N1.61 billion) have been pledged to secure borrowing of the holding company.

14.3 Contractual commitments At 30 September 2016, the company and the group had no contractual commitments for the acquisition of property, plant and equipment (2015: Nil).

12

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 15

Intangible assets

The Company Tetra 2000 N'000 Cost At 1 January 2016 At 30 September, 2016

Web Site N'000

Payroll N'000

Sage N'000

Total N'000

398 398

478 478

315 315

2,966 2,966

4,157 4,157

Amortisation At 1 January 2016 Charge for the year

398

478

315

2,966

At 30 September, 2016

398

478

315

2,966

4,157 4,157

0

0

Carrying amount At 30 September, 2016

(0) -

At 31 December 2015 15.1 Significant intangible assets

(0) -

-

-

-

The Group currently used sage ERP 100 accounting package in collating and preparing accounting information for decision making. The carrying amount of the sage accounting package is Nil (31 December, 2015:Nill)

13

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 16

Investment in subsidiary GROUP 30/09/2016 31/12/2015 N'000 N'000 Carrying amount at cost

COMPANY 30/09/2016 31/12/2015 N'000 N'000 9,600

9,600

Details of the Group subsidiary at the end of the reporting period is as stated below

Name of the company

Principal activity

DNM Construction limited

Construction and rehabilitation of building

Proportion of ownership interest and voting power Place of incorporation held by the Group 30/09/2016

31/12/2015

96%

96%

Mr. Kayode Falowo

Cost N'000 100

% 1

Mr. Toyin Okeowo

100

1

Alhaji Ibrahim Suleman

100

1

Arc. Ayoola Onajide

100

1

400

4

Nigeria

The Group owns 96% of the DNM Construction limited The remaining 4% shares atributable to non controlling interest is stated below:

Two out of the four shareholders are Directors of Meyer Plc.

14

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 The Group 17

The Company

Inventories 30/09/2016 N'000 41,532 64,972 139,082 1,384

Raw materials Work in progress Finished Goods - Paints & Adhesives Consumables

Provision for obsolete spares and slow moving stock

31/12/2015 N'000 34,789 17,545 145,027 4,024

30/09/2016 N'000 41,532 64,972 139,082 1,384

31/12/2015 N'000 34,789 17,545 145,027 4,024

246,971 (0)

201,385 (5,069)

246,971 (0)

201,385 (5,069)

246,971

196,316

246,971

196,316

The carrying amount of the inventories is the lower of their costs and net realisable values as at the reporting dates.

18

Trade and other receivables 30/09/2016 N'000 107,735 (52,181) 55,554

Trade receivables Allowance for doubtful debts Other receivables Insurance claim WHT claimable Returnable containers Sundry debtors

31/12/2015 N'000 185,806 (55,985) 129,821

30/09/2016 N'000 71,510 (52,181) 19,328

31/12/2015 N'000 149,178 (55,985) 93,193

1,483 37,525 12,538 1,015

2,168 36,474 12,538 1,592

1,483 37,525 12,538 615

2,168 36,474 12,538 1,595

108,114

182,594

71,489

145,968

The Directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value

19

Other assets

Prepayments

15

30/09/2016 N'000 15,454

31/12/2015 N'000 5,492

30/09/2016 N'000 15,454

31/12/2015 N'000 5,492

15,454

5,492

15,454

5,492

15,454

5,492

15,454

5,492

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016

The Group 20

The Company

Cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks, short term investments with an original maturity of three months or less, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be reconciled to the related items in the statement of financial position as follows:

Cash and bank balances Short term investments (Note 20.1)

30/09/2016 N'000 1,870 -

31/12/2015 N'000 11,748 24,030

30/09/2016 N'000 1,687 -

31/12/2015 N'000 12,609 22,984

1,870

35,778

1,687

35,593

20.1 Short term investment These represents cash held in Fixed deposits in various bank. This investments are placed in short term deposits and are continuously rolled over throughout the period

21

Borrowing

LPO Financing Term loan Total borrowings

30/09/2016 N'000 20,000 603,535

31/12/2015 N'000 627,200

30/09/2016 N'000 20,000 603,535

31/12/2015 N'000 627,200

623,535

627,200

623,535

627,200

21.1 Analysis of loan balances to current and non-current portion 20,000 101,690

LPO Financing Term loan

121,690

Current portion

96,277

20,000 101,690

96,277

121,690

96,277 96,277

This relates to amount that will fall due in the next 12 months to AMCON, FBN and Eco Bank. Term loan Restructured long term loan Unsecured Loans from FBN/Ecobank through BOI/CBN intervention fund LPO Financing Secured Loans from UBN transferred to AMCON Reclassification as short term loan

623,535

627,200

623,535

627,200

82,035 20,000

105,700

82,035 20,000

105,700

521,500 623,535 (121,690)

521,500 627,200 (96,277)

521,500 623,535 (121,690)

521,500 627,200 (96,277)

501,846

530,923

501,846

530,923

Repayment of loan

627,200 20,000 (23,665)

746,595 92,313 (101,365) (110,343)

627,200 20,000 (23,665)

746,595 92,313 (101,365) (110,343)

Closing balance

623,535

627,200

623,535

627,200

Movement at a glance Opening balance Term (interest capitalised) Gains on loan restructuring LPO Financing

21.2 Loans from Bank of Industry of Nigeria (BOI) includes loans from First Bank of Nigeria and Eco Bank of Nigeria restructured under BOI. The rate of interest is 7% and spread over ten years Loans from Asset Management Corporation of Nigeria (AMCON) was a loan from Union Bank of Nigeria restructured under AMCON. On 6th June 2016 the loan was restructured with a new prinicipal amount of N521.50million at a rate of 8% and spread over sixty months payable on quarterly basis commencing from 31 August 2016. The loan is secured by a charge over the company's 21.3 leasehold property. 21.4 LPO Financing was obtained for a period of three (3) months at an interest rate of 17% 21.5 The current position of the loan relates to amount that will fall due after twelve month to AMCON and FBN.

22

Employment benefits 30/09/2016 N'000 21,722 (1,471)

Balance as at 1 January Payment for the period Balance as 30 September

16

20,251

31/12/2015 N'000 25,051 (3,329) 21,722

30/09/2016 N'000 21,722 (1,471) 20,251

31/12/2015 N'000 25,051 (3,329) 21,722

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 GROUP 23

COMPANY

Trade and other payables

Trade payable Other payables: Retention fees Proposed dividend Value added tax Withholding tax payable PAYE Accruals National housing fund Rent receivable Sundry creditors Pension scheme (note i.) Technical Management fees Due to related party

30/09/2016 N'000 149,221

31/12/2015 N'000 230,294

30/09/2016 N'000 143,386

31/12/2015 N'000 224,459

112 125,861 22,158 7,974 74,581 35 9,731 26,731 8,835 40,838

112 3,527 122,936 20,625 6,473 47,256 14 6,653 24,531 3,862

112 125,861 22,116 7,974 74,263 35 9,731 26,630 8,835 40,838 23,438

112 3,527 122,936 20,625 6,473 46,795 14 6,653 24,531 3,862

483,219

486,545

466,076

466,283

26,558

(i)

In accordance with Pension Reform Act, 2014 the employees of the company are covered by a pension scheme which is managed by several approved Pension Funds Administrators. The company is required to contribute 10% of payroll costs to the the retirement benefit scheme to fund the benefits while the employee contributes 8%. The only obligation of the company with respect to the defined contribution plan is to make the specified contributions. The total expenses recognised in the profit & loss of N8,835,000 (2015 N3,862,000) represents contributions payable to these plans by the company at rates specified.

24

Share capital 30/09/2016 N'000

31/12/2015 N'000

30/09/2016 N'000

31/12/2015 N'000

Authorised: 1,300,000,000 ordinary shares of 50k each

650,000

650,000

650,000

650,000

Issued and fully paid: 325,000,000 ordinary shares of 50k each

145,745

145,745

145,745

145,745

30/09/2016 N'000 10,485

31/12/2015 N'000 10,485

30/09/2016 N'000 10,485

31/12/2015 N'000 10,485

10,485

10,485

10,485

10,485

The Company has one class of ordinary shares which carry no right to fixed income. 25

Share premium

At 1 January Closing balance 26

Retained earnings 30/09/2016 N'000 526,403 (71,600)

At 1 January Profit/(Loss) attributable to owners of the company Closing balance

454,803

31/12/2015 N'000 472,729 53,674 526,403

30/09/2016 N'000 481,870 (68,605)

31/12/2015 N'000 408,640 73,230

413,265

481,870

30/09/2016 N'000

31/12/2015 N'000

26 (i) Non controlling interest 30/09/2016 N'000 2,656

At 1 January Adjustment during the period transfer from profit or loss

(125)

31/12/2015 N'000 3,070 400 (814)

17 Closing balance

2,531

2,656

-

-

MEYER PLC UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER, 2016 27

DIRECTORS AND EMPLOYEES

27.1 DIRECTORS The Group 30/09/2016 31/12/2015 N'000 N'000 Emoluments: Fees Other remuneration and allowances

563 17,409 17,971

1,017 16,500 17,517

The Company 30/09/2016 31/12/2015 N'000 N'000 563 17,409 17,971

1,017 16,500 17,517

The number of Directors whose gross emoluments were within the following ranges are: Range (N) 1,000,001 - 2,000,000 3,000,001 and above

Number 1 1

Number 2 2

Number 1 1

Number 2 2

Number 127

Number 130

Number 127

Number 130

127

130

127

130

N'000 133,368 10,924 30 144,323

N'000 151,105 11,967 30 163,102

N'000 133,368 10,924 30 144,323

N'000 151,105 11,967 30 163,102

Number 3 106 8 10 127

Number 57 59 5 9 130

27.2 EMPLOYEES The average number of employees employed during the year:

The aggregate payroll costs: Wages, salaries, allowances and other benefits Pension and social benefits Staff training

The number of higher paid employees with gross emoluments within the ranges below were: Number 3 106 8 10 127

Range (N) Up to 500,000 500,001 - 2,000,000 2,000,001 - 3,000,000 3,000,001 and above

28

Number 57 59 5 9 130

Approval of financial statements The unaudited condensed interim consolidated and separate financial statements were approved by the Board on 28 October, 2016.

18