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
