Mar 31, 2016 - Payment for shares acquired-Portland Paints Plc .... supply chain services including warehousing, transpo
UAC of Nigeria Plc Financial Statements for the period ended 31st March 2016
UAC of Nigeria Plc Consolidated Statement of Profit or Loss and Other Comprehensive Income For the period ended 31st March 2016
Notes
The Group 31 Mar 16 31 Mar 15 N'000 N'000
% Change
Continuing Operations Revenue
3
Cost of sales Gross profit Dividends Income Other gains Selling and distribution expenses Administrative expenses Other Losses Operating profit
4
4(i)
17,517,942
17,729,417
-1%
(13,593,048)
(13,543,346)
0%
3,924,895 266,493 (878,415) (1,647,111) 1,665,861
4,186,071 290,416 (785,524) (1,655,355) (1,329) 2,034,279
-6% -8% 12% 0% -100% -18%
Finance income
5
230,392
314,633
-27%
Finance cost Net finance (cost) / income
5
(793,775) (563,382)
(792,166) (477,533)
0% 18%
664,242
739,435
-10%
1,766,721 (446,708)
2,296,182 (619,969)
-23% -28%
1,320,013
1,676,213
-21%
(3,323)
4,192
-179%
1,316,690
1,680,405
-22%
Share of net profit of associates and joint venture using the equity method
11(i)
Profit before tax from continuing operations Income Tax Expense Profit after tax for the year from continuing operations Discontinued operations Profit after tax for the year from discontinued operations
22
Profit for the year Other comprehensive income for the year net of tax
-
Total comprehensive income for the year net of tax % of Revenue Profit attributable to: Equity holders of the parent Non controlling interests Total comprehensive income attributable to: Equity holders of the parent Non controlling interests Earnings per share from continuing and discontinued operations attributable to owners of the parent during the year (expressed in Naira per share): Basic Earnings Per Share From continuing operations From discontinued operations From profit for the year Diluted Earnings Per Share From continuing operations From discontinued operations From profit for the year
-
1,316,690 8%
1,680,405 9%
-22% -21%
786,703 529,986
971,763 708,642
-19% -25%
1,316,690
1,680,405
786,703 529,986 1,316,690
971,763 708,642 1,680,405
6 6
6 6
-19% -25%
41 (0) 41
50 0 51
-
41 (0) 41
50 0 51
-
The notes on pages 5 to 21 are an integral part of these consolidated financial statements. 1
UAC of Nigeria Plc Consolidated Statement of Financial Position As at 31st March 2016 The Group 31 Mar 16 31 Dec 15 N'000 N'000
% Change
Notes Assets Non-current assets Property, plant and equipment Intangible assets and goodwill Investment property Investments in associates and joint ventures
7 8 9 11
35,053,753 1,825,255 19,621,378 21,197,867
35,439,239 1,862,646 20,035,327 21,197,867
Available-for-sale financial assets Investments in subsidiaries Prepayment Deferred tax asset
10
19,308 10,789 202,612 77,930,962
19,308 10,789 203,290 78,768,466
0% -1%
29,312,319 14,945,144 11,305,676 55,563,139
25,283,076 14,593,840 9,183,402 49,060,318
16% 2% 23% 13%
14
Current assets Inventories Trade and other receivables Cash and Cash equivalents (excluding bank overdrafts)
12 14 15
Assets of disposal group classified as held for sale
22
Total assets
-1% -2% -2%
761,409
826,544
-8%
134,255,510
128,655,328
4%
9,553,431 4,973,174 12,850 133,601 14,673,056
8,125,644 5,048,083 15,751 133,600 13,323,078
18% -1% -18% 0% 10%
14,528,106 4,731,975 19,535,647 4,775,467 466,448 44,037,643
14,941,485 4,735,539 17,522,548 3,574,697 307,361 41,081,630
-3% 0% 11% 34% 52% 7%
86,097
108,597
-21%
58,796,796
54,513,304
8%
960,432 3,934,536 28,575 (5,504) 40,457,124
960,432 3,934,536 28,575 (5,504) 39,670,420
2%
45,375,163
44,588,460
2%
Liabilities Non-current liabilities Borrowings Deferred tax liabilities Deferred revenue Provisions
16 18 19
Current liabilities Trade and other payables Current income tax liabilities Bank overdrafts and current portion of borrowings Dividend payable Deferred revenue
18
Liabilities of disposal group classified as held for sale
22
17 16
Total liabilities Equity Ordinary share capital Share premium Contingency reserve Available-for-sale reserve Retained earnings
20 20 20
Equity attributable to equity holders of the Company Non controlling interests Total equity Total equity and liabilities
30,083,551
29,553,564
2%
75,458,714
74,142,024
2%
134,255,510
128,655,328
4%
The financial statements and the notes on pages 5 to 49 were approved and authorised before issue by the board of directors on 30 March, 2016 and were signed on its behalf by: Mr Larry E. Ettah
GMD/CEOFRC/2013/IODN/00000002692
Mr. Abdul A. Bello
ED/CFO FRC/2013/ICAN/0000000724
The notes on pages 5 to 21 are an integral part of these financial statements.
2
UAC of Nigeria Plc Consolidated Statement of Changes in Equity for the period ended 31st March 2016 The Group Attributable to owners of the Company
Balance at 1 January 2015 Profit and loss Other comprehensive income Net changes in fair value of available-for-sale financial assets Transactions with Equity holders Dividends Prior year adjustment - Grand Cereals Limited Balance at 31 December 2015 Balance at 1 January 2016 Profit and loss Transactions with Equity holders Dividends Balance at 31 March 2016 Balance at 1 January 2015 Profit and loss Other comprehensive income: Dividends Balance as at 31 March 2015
Share Capital N'000 960,432
Share Premium N'000 3,934,536
Contingency reserve N'000 28,575
-
-
-
-
-
-
Available for sale Reserve N'000 (3,792) (1,712)
Retained Earnings N'000 40,048,438
N'000 44,968,190
Non controlling Interest N'000 30,109,541
Total N'000 75,077,731
2,996,779
2,996,779
2,186,420
5,183,199
-
Total
(1,712)
(1,292)
(3,004)
960,432
3,934,536
28,575
(5,504)
(3,361,512) (13,285) 39,670,420
(3,361,512) (13,285) 44,588,460
(2,733,930) (7,176) 29,553,564
(6,095,441) (20,461) 74,142,024
960,432 -
3,934,536 -
28,575 -
(5,504)
39,670,420 786,703
44,588,460 786,703
29,553,564 529,986
74,142,024 1,316,690
960,432
3,934,536
28,575
(5,504)
40,457,124
45,375,163
30,083,551
75,458,714
960,432
3,934,536
28,575
(3,792)
40,048,438
44,968,190
30,109,541
75,077,731
-
-
971,762
971,762
708,642
1,680,404
41,020,200
45,939,952
960,432
3,934,536
28,575
(3,792)
(172,410) 30,645,773
(172,410) 76,585,726
3
UAC of Nigeria Plc Consolidated statement of cash flow for the period ended 31st March 2016
Notes Cash flows from operating activities Cash generated from/(used in) operations Corporate tax paid VAT paid
21
Interest paid Net cash flow generated from/(used in) operating activities
The Group 31 Mar 16 31 Mar 15 N'000 N'000 (1,032,676) (80,352)
1,886,095 (125,324) (116,454)
(793,775)
(793,533)
(1,906,803)
850,784
230,392 (1,034) (286,620) 112,145 (11,052) 664,242 (10,000) (109,883) 588,191
314,633 (23,289) (659,446) 6,701 (1,746) 394,382 31,235
1,427,787 1,411,421 2,839,208
(172,410) 1,302,484 (2,388,920) (1,258,846)
1,520,596 7,374,776
(376,828) 5,832,402
8,895,371
5,455,575
Cash flows from investing activities Interest received Dividend received Purchase of Intangible assets Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of investment properties Proceeds from sale of investment properties Income Distribution from UPDC REIT Recovery of previously impaired loan Payment for shares acquired-Portland Paints Plc Net cash generated from investing activities Cash flows from financing activities Dividends paid to non controlling interests Dividends paid to Company shareholders Proceeds from borrowings Increase/(Decrease) in commercial papers Net cash flow used in financing activities Net increase/(decrease) in cash & cash equivalents Cash & cash equivalents at the beginning of the year Cash & cash equivalents at the end of the year
15(i)
4
UAC of Nigeria Plc NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1.
General information UAC of Nigeria Plc ('the Company') and its subsidiaries (together 'the Group') is a company incorporated in Nigeria. The Group is a diversified business with activities in the following principal sectors: Foods, Logistics, Real Estate and paints. The address of the registered office is 1-5, Odunlami Street, Lagos. The company is a public limited company, which is listed on the Nigerian Stock Exchange domiciled in Nigeria.
2.
Summary of significant accounting policies
2.1
Basis of preparation The financial statements have been prepared in accordance with IAS 34. The financial statements have been prepared on a historical cost basis except for investment property, held for trading and available for sale financial instruments which are carried at fair value.
2.2
Accounting Policies The accounting policies adopted are consistent with those for the year ended 31 December 2015.
2.3
Estimates The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed interim financial statements, the significant judgements made by management in applying the group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2015.
2.4
Financial Risk Management The group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the group’s financial performance. This interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the company’s annual financial statements as at 31 December 2015. There have been no changes in the risk management structure since year end or in any risk management policy.
5
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 3. Segment Analysis The Group The chief operating decision-maker has been identified as the Executive Committee (Exco), made up of the executive directors of the company. The Exco reviews the Group’s internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. The Group has identified the following as segments: Food and Beverage - Made up of business units involved in the manufacturing and sales of food items, livestock feeds, bottled water, fruit juices, ice-cream and quick service restaurants. Paints - Made up of business units involved in the manufacturing and sales of paints products and other decoratives. Logistics - Made up of a business unit involved in rendering logistics and supply chain services including warehousing, transportation and redistribution services. Real Estate - Made up of a business unit involved in real estate development and management and owners of Golden Tulip Hotels, Festac, Lagos. Others - These are non-reportable segments made up of two medium size entities within the group involved in pension fund administration services and the corporate head office. The following measures are reviewed by Exco; with Profit Before Tax taken as the segment profit. - Revenue to third parties - Operating profit - Profit before tax - Property, plant and equipment - Net assets - EBIT Margin - Return On Equity
Total Revenue Intergroup revenue Revenue to third parties
C Paints o m N'000 N ' 13,417,398 2,273,954 (180) 13,417,218 2,273,954
Operating profit
1,098,483
561,027
261,176
Profit before tax
837,135
559,750
293,483
31 March 2016
Share of profit of associates and joint venture
Food and Beverages N'000
-
-
Logistics
Real Estate
Others
N'000
N'000
N'000
1,238,898 (157,828) 1,081,070
-
683,490 (32,498) 650,992 (138,818) (125,290)
Total N'000
252,923 (158,215) 94,708
17,866,663 (348,721) 17,517,942
(116,008)
1,665,861
201,644
1,766,721
664,242
-
664,242
Property, plant and equipment
16,734,114
1,298,342
3,700,754
12,471,112
849,431
35,053,753
Net assets
18,459,118
2,656,142
5,104,499
35,446,422
13,792,531
75,458,713
31 March 2015 Total Revenue Intergroup revenue Revenue to third parties
Food and Beverages N'000
C Paints o m N'000 N ' 12,926,184 2,400,762 (223,100) (9,603) 12,703,084 2,391,159
Logistics
Real Estate
Other
Total
N'000
N'000
N'000
N'000
1,172,556 (41,308) 1,131,248
1,447,023 (32,009) 1,415,014
242,868 (153,956) 88,912
18,189,393 (459,977) 17,729,417
Operating profit
1,111,940
748,528
255,283
23,955
(105,427)
2,034,279
Profit before tax
772,750
767,597
288,644
227,431
239,758
2,296,181
-
-
-
739,435
-
739,435
Property, plant and equipment
16,958,862
1,255,241
3,724,555
12,630,875
869,706
35,439,239
Net assets
17,330,830
2,137,608
4,904,932
35,574,169
14,194,484
74,142,024
Share of profit of associates and joint venture
Entity wide information Analysis of revenue by category: Sale of goods Revenue from services
Analysis of revenue by geographical location: Nigeria
31 Mar 2016 N'000 16,342,165 1,175,778 17,517,942 31 Mar 2016 N'000 17,517,942 17,517,942
31 Mar 2015 N'000 16,598,169 1,131,248 17,729,417 31 Mar 2015 N'000 17,729,417 17,729,417
Concentration risk The group is not exposed to any concentration risk, as there is no single customer with a contribution to revenue of more than 10%. 6
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 4. Other Gains
Profit on sale of Property,Plant and Equipment Loss on sales of Investment Property Recovery of previously impaired loan Government grant* Other trading income Total other Gains
The Group 31 Mar 2016 31 Mar 2015 N'000 N'000 8,532 3,468 1,000 10,000 110,000 31,674 59,389 215,286 117,559 266,493 290,416
*Government grant The government grant of N32 million (At March 2015 : N59 million) relates to government facilities received by two entities – Livestock Feeds PLC and Portland Paints and Products Nigeria PLC, at below-market rates of interest. The facilities are meant to assist in the procurement of certain items of plant and machinery. In both entities, the grants are recognised as deferred income and amortised to profit or loss on a systematic basis over the useful life of the asset in line with their respective accounting policies. 4(i). Other Losses
The Group 31 Mar 2016 31 Mar 2015 N'000 N'000
Loss on sale of Property,Plant and Equipment
-
(1,329)
Total other Losses
-
(1,329)
7
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 5. Net finance income/(cost) The Group 31 Mar 2016 31 Mar 2015 N'000 N'000 Interest income on short-term bank deposits Finance Income Interest payable on bank loans Interest payable on bank overdraft Government grant Finance Costs Net finance (cost) / income
230,392 230,392
314,633 314,633
630,458 137,771 25,545 793,775 (563,382)
486,431 252,475 53,260 792,166 (477,533) 8
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 6. Earnings Per Share (a) Basic Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the year.
The Group 2016 2015 N'000 N'000 Profit attributable to ordinary equity shareholders: Profit from continuing operations Profit from discontinued operations
790,026 (3,323) 786,703
967,571 4,192 971,763
Basic earnings per share From continuing operations From discontinued operations From profit for the period
41 (0) 41
50 0 51
Dilluted earnings per share From continuing operations From discontinued operations From profit for the period
41 (0) 41
50 0 51
Basic weighted average and Diluted weighted average number of shares (000) (b) Diluted Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The group has no dilutive instruments. 9
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 7. Property, plant and equipment The Group
At 1 January 2015 Additions Disposals Transfers Write Off Reclassifications Other reclassifications At 31 December 2015
Leasehold land and buildings N'000 24,069,948 83,516 743,408 24,896,872
At 1 January 2016 Additions Disposals Transfers Write Off* Reclassifications Other reclassifications At 31 March 2016
24,896,872 5,609 24,016 94,590 25,021,087
Cost:
Plant and Computer Machinery Equipment N'000 N'000 17,685,977 530,886 223,173 85,929 (455,805) (17,599) 3,238 (475) (1,413) (1,609) (54,993) 373,198 285 533 17,400,461 970,862
Motor Vehicles N'000 4,713,741 288,011 (768,833) (2,169) (206) 201,304 5,510 4,437,359
Office Furniture N'000 2,736,508 80,955 (90,420) 8,019 (86,139) 210 2,649,132
Capital Work in progress N'000 2,566,345 1,047,110 (3,735) (8,397) (1,176,779) 2,424,544
Total N'000 52,303,405 1,808,693 (1,336,392) 216 (3,228) -0 6,537 52,779,231
2,424,544 194,028 (545) (206,572) 2,411,455
52,779,231 286,620 (270,301) (7,084) (10,450) 119,105 52,897,121
17,400,461 45,952 (215,132) (10,450) 14,105 17,486 17,252,422
970,862 18,289 (1,164) (154) 987,833
4,437,359 17,052 (50,188) (6,930) 168,250 5,391 4,570,934
2,649,132 5,691 (3,272) 200 1,639 2,653,390
2,746,276 365,122
7,285,441 1,125,741
336,444 85,430
3,285,408 473,022
2,036,956 299,218
-
15,690,524 2,348,533
Impairment charge Disposals Transfers Write Off Reclassifications Other reclassifications At 31 December 2015
453,173 194,474 (863) 3,758,181
37,233 (449,359) (268,226) 77 7,730,907
12 (16,641) (474) (24) 210,394 433 615,575
117 (651,596) (2,081) (21) (10,686) 2,468 3,096,630
7,806 (79,494) (125,955) 171 2,138,701
-
498,341 (1,197,090) (2,555) (45) 2,286 17,339,994
At 1 January 2016 Charge for the year Disposals Transfers Write Off At 31 March 2016
3,758,181 151,541 3,909,721
7,730,907 336,036 (132,332) (9,910) 7,924,700
615,575 51,694 (588) (153) 666,529
3,096,630 113,271 (39,390) (5,886) 3,164,625
2,138,701 41,381 (2,291) 2,177,792
-
Net book values: At 31 March 2016
21,111,366
9,327,722
321,304
1,406,308
475,598
2,411,455
35,053,753
21,138,692
9,669,554
355,287
1,340,728
510,431
2,424,544
35,439,238
Accumulated depreciation and impairment At 1 January 2015 Charge for the year
At 31 December 2015
-
17,339,994 693,923 (174,601) (6,039) (9,910) 17,843,368
10
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 8. Intangible assets and goodwill
Cost
Goodwill N'000
Group Brands & Trade Marks Software N'000 N'000
Total N'000
At 1 January 2015 Additions - externally acquired during the year Transfer from PPE At 31 December 2015
548,747 548,747
1,070,185 1,070,185
905,788 174,077 (7,362) 1,072,503
2,524,720 174,077 (7,362) 2,691,435
At 1 January 2016 Additions - externally acquired during the year At 31 March 2016
548,747 548,747
1,070,185 1,070,185
1,072,503 1,034 1,073,537
2,691,435 1,034 2,692,469
Accumulated amortisation and impairment At 31 December 2015 Amortisation for the year At 31 December 2015
-
288,439 288,439
393,828 146,521 540,349
682,268 146,521 828,788
At 1 January 2016
-
288,439
540,349
828,788
Amortisation for the year At 31 March 2016
-
288,439
38,426 578,774
38,426 867,214
Net book values At 31 March 2016
548,747
781,746
494,763
1,825,255
At 31 December 2015
548,747
781,746
532,154
1,862,646 11
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 9. Investment property The Group Freehold building N'000
Fair value At 1 January 2015 Additions during the year
708,898 -
Leasehold building N'000
Total investment properties N'000
19,215,524 54,377
19,924,422 54,377
260,000 (276,365)
260,000 (276,365)
Reclassification from property stocks held as inventories (Note 13) Disposals Net gain from fair value adjustments on investment property At 31 December 2015
11,837 720,735
61,056 19,314,592
72,893 20,035,327
At 1 January 2016 Additions during the year Net gain from fair value adjustments on investment property At 31 March 2016
720,735 720,735
19,314,592 11,052 (425,000) 18,900,644
20,035,327 11,052 (425,000) 19,621,379
Fair value of investment properties is categorised as follows:
31-Mar-16 External valuation
The Group Freehold building N'000 720,735 720,735
Fair value of investment properties is categorised as follows:
31-Dec-15 External valuation
Leasehold building N'000 18,900,644 18,900,644
Total investment properties N'000 19,621,379 19,621,379
The Group Freehold building N'000 720,735 720,735
Leasehold building N'000 19,314,592 19,314,592
Total investment properties N'000 20,035,327 20,035,327
The Group’s investment properties were revalued at 31 December 2015 by an independent professionally qualified valuer who holds recognised relevant professional qualifications and has recent experience in the locations and categories of the investment properties valued. The latest valuation was performed by the external SurveyorMessrs Steve Akhigbemidu & Co. (FRC/2013/NIESV/000000001442). Internal and inter-group valuation are performed by UAC Property Development Company Plc who hold recognised relevant professional qualifications and have recent experience in the locations and categories of the investment properties valued. 12
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 10. Available for Sale financial assets The details and carrying amount of available for sale financial assets are as follows:
Opening Balance as at 1 January Fair value Loss on available-for-sale financial assets
The Group 2016 2015 N'000 N'000 19,308 22,312 19,308
(3,004) 19,308
11. Investments in associates and equity accounted joint ventures
UPDC's Investment in UPDC REIT UPDC Metro City Limited First Festival Mall Limited James Pinnock JV Transit Village Dev. Co. Ltd At 31 March
The Group 2016 2015 N'000 N'000 19,109,799 19,109,799 244,170 244,170 234,427 234,427 1,535,865 1,535,865 73,606 73,606 21,197,867 21,197,867
The UPDC Real Estate Investment Trust (REIT) is a close-ended real estate investment trust which is listed on the Nigerian Stock Exchange.As at 31 December 2015, the fair value of each unit holders'contribution is N10.
13
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 11(i) Share of net profit of Associates using the equity method
Share of profit in REIT
The Group 2016 2015 N'000 N'000 664,242 739,435
UPDC diversified its portfolio in 2013 through the floating of the UPDC Real Estate Investment Trust (REIT) at a capital value of N26.7 billion listed on the Nigerian Stock Exchange (NSE) on 1 July, 2013. Five (5) major investment properties were transferred to the UPDC REIT namely Abebe Court Ikoyi, Victoria Mall Plaza (VMP), residential and office block, Victoria Island, UACN commercial complex Abuja and MDS warehouse at Aba. The REIT's income comprises of rental income from these investment properties and interest income from investment in money market instruments and other real estate's related assets. UPDC held 61.5% of the real fund at 31 December 2015.The share of profit recognised in the group financial statements relates to UPDC's share of the REIT's profit for the Quarter ended 31 March 2016. 12. Inventories
Raw materials and consumables Technical stocks and spares Properties under construction (note 13) Finished goods and goods for resale
The Group 2016 2015 N'000 N'000 13,551,258 10,406,991 1,156,150 1,232,933 13,042,848 12,166,714 1,562,063 1,476,439 29,312,319 25,283,076
13. Properties under construction included in inventories
Cost/Valuation Balance 1 January Additions Disposals Reclassification as investment properties (Note 14) Provision for Maitama Land Unrealised gain on transfer of asset Balance 31 March
The Group 2016 2015 N'000 N'000 12,166,714 9,489,183 1,045,215 5,896,842 (197,629) (3,178,378) (260,000) (5,423) 28,548 224,489 13,042,848 12,166,714
14. Trade and other receivables Receivables due within one year Trade receivables Less: allowance for impairment of trade receivables Net trade receivables Receivables from Group companies Other receivables Advance payments WHT receivable Prepayments - staff grants Prepayments- Other
The Group 2016 2015 N'000 N'000 5,315,459 5,375,563 (1,817,092) (1,750,181) 3,498,367 3,625,382 9,046,567 7,642,520 241,533 1,057,286 734,516 794,429 430,746 263,614 993,414 1,210,609 14,945,143 14,593,840 14
14. Trade and other receivables (Continued) Trade receivables are non-interest bearing and are generally due for settlement within 30 days and therefore are all classified as current.They are amounts due from customers for goods sold or services performed in the ordinary course of business. Other receivables are amounts that generally arise from transactions outside the usual operating activities of the group. Interest may be charged at commercial rates where the terms of repayment exceed six months. Collateral is not normally obtained. If collection of the amounts is expected in one year or less they are classified as current assets. If not, they are presented as non-current assets. Advance payments are mobilisation fees made to contractors for the supply of goods and services.
Prepayments - Current Prepayments - Non-current Total prepayments
The Group 2016 2015 N'000 N'000 1,424,160 1,474,223 10,789 10,789 1,434,949 1,485,012
The balance on prepayment represent rent and insurance paid in advance which will be charged against earnings in the periods they relate to. Movements in the provision for impairment of trade receivables are as follows:
At 1 January Allowance for receivables impairment Unused amounts reversed 31 March
The Group 2016 2015 N'000 N'000 1,750,181 1,680,892 66,911 69,289 1,817,092 1,750,181 15
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 15. Cash and cash equivalents
Cash at bank and in hand Short-term deposits Cash and short-term deposits
The Group 2016 2015 N'000 N'000 928,000 1,379,000 10,377,676 7,804,402 11,305,676 9,183,402
Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. In 2015, Securities and Exchange Commission directed all Registrars to return all unclaimed dividends, which have been in their custody for fifteen months and above, to the paying companies.Included in the cash and short-term deposits is N1.9b which represents unclaimed dividends received from Africa Prudential Registrars as at March 2016. (i) Reconciliation to statement of cash flow The above figures reconcile to the amount of cash shown in the statement of cash flows at the end of the financial year as follows:
Cash and short-term deposits Bank Overdrafts (Note 21) Balances per statement of cash flow
The Group 2016 2015 N'000 N'000 11,305,676 9,183,402 (2,410,304) (1,808,626) 8,895,371 7,374,776
16. Borrowings The Group 2016 2015 N'000 N'000 Current borrowings Overdrafts due within one year Commercial papers due within one year Non-current borrowings Loans due after one year (i) Total borrowings
2,410,304 17,125,343 19,535,647
1,808,626 15,713,922 17,522,548
9,553,431
8,125,644
29,089,078
25,648,191
16
16. Borrowings (Continued)
The borrowings are repayable as follows:
Within one year Between one to two years Between two to three years More than three years
The Group 2016 2015 N'000 N'000 19,535,647 17,522,548 9,441,308 7,888,237 112,123 237,407 29,089,078 25,648,191
(i) Loans due after one year Group Details of the loan maturities due after one year are as follows: Facility Grand Cereals Ltd - Stanbic IBTC PPPNP-Bank of Industry CAP - Stanbic IBTC
Term Loan: UPDC - Guaranty Trust Bank UPDC - First Securities Discount House
Amount due 2016 2015 N'000
N'000
2,925,926 112,123 200,000 3,238,049
1,592,593 133,811 1,726,404
2,976,720 3,338,662 9,553,431
2,976,720 3,422,519 8,125,644
17
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 17. Trade and other payables
Trade payables Provision for employee leave Other payables Income received in advance Accruals Total
The Group 2016 2015 N'000 N'000 4,684,134 5,948,741 4,684,134 5,948,741 8,821 28,795 5,231,869 4,201,757 594,774 1,019,079 4,008,509 3,743,113 14,528,106 14,941,485
Terms and conditions of the above financial liabilities Trade payables are non-interest bearing and are normally settled between 30 and 60-day terms. Other payables and accruals are non-interest bearing and have an average term of six months. Income received in advance are deposits or down-payments received from customers for products. 18. Deferred revenue
At 1 January Deferred during the period Released to the statement of profit or loss At 31 March Current Non-current
The Group 2016 2015 N'000 N'000 323,112 306,844 334,003 717,446 (177,817) (701,178) 479,298 323,112 466,448 12,850
307,361 15,751
Deferred revenue are rentals received in advance which are recognized in the statement of profit or loss when earned. The Group and Company lease a number of premises. These are subject to review dates ranging from 1 year to 2 years. 18
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 19. Provisions
Group At 1 January 2016 Unwinding of discount Derecorgnised Liabilities Arising during the year 31 March 2016 Current Non-current At 1 January 2015 Unwinding of discount Arising from acquisition of Portland Paints Plc Derecorgnised Liabilities Arising during the year 31 December 2015 Current Non-current
Contingent Liabilities N'000 50,000 50,000
N'000 60,023 60,023
Decommisioning liability N'000 23,578 23,578
Total N'000 133,601 133,601
50,000
60,023
23,578
133,601
50,000 50,000
57,947 2,076 60,023
24,118 3,040 (3,580) 23,578
132,065 3,040 (3,580) 2,076 133,601
50,000
60,023
23,578
133,601
Legal claim
Contingent liabilities The contingent liability arose from the fair value of assets acquired, liabilities assumed and the non-controlling interest of Portland Paints Plc at the acquisition date. Legal claim In June 2014, an award was made against the group in respect of a legal claim made by a claimant. The award requires a payment of $136,805 rent and service charges to the claimant. A provision has been recognised for this amount. However, we have applied for stay of execution of the award and also filed an application for the setting aside of the award for being null and void. No payment has been made to the claimant pending outcome of the stay of execution. The Lagos high court is currently reviewing the case. Decommisioning liability A subsidiary of the company (UAC Restaurants Limited) has a number of leasehold properties converted to Restaurants, which are required by agreements to be restored back to their original condition upon the expiry of the leases. Decommissioning Liability relates to the provisions made for decommissioning costs relating to these properties.Management has applied its best judgement in determining the amount of the liability that will be incurred at the end of each lease term. Variables such as inflation rate and currency exchange rates amongst others, were considered in this estimate. The discount rate for the unwinding of the discount on the liability was determined using the "Capital Asset Pricing Model".
19
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 20. Share Capital Group and Company 2016
Authorised: Ordinary Shares of 50k each Preference Shares of 50k each Total authorised share capital Issued and fully paid: Ordinary shares of 50k each Total called up share capital Movements during the period:
At 31 December 2015 Capitalised during the period At 31 March 2016
Number 000
Amount N'000
3,000,000 400,000 3,400,000
1,500,000 200,000 1,700,000
1,920,864 1,920,864
960,432 960,432
Group and Company Number of Ordinary shares shares 000 =N='000 1,920,864 960,432 1,920,864 960,432
Nature and purpose of Other Reserves Share Premium Section 120.2 of Companies and Allied Matters Act requires that where a company issues shares at premium (i.e. above the par value), the value of the premium should be transferred to share premium. The Share premium is to be capitalised and issued as scrips as approved by shareholders from time to time. Contingency Reserve The contingency reserve covers an appropriation of surplus or retained earnings that may or may not be funded, indicating a reservation against a specific or general contingency. The contingency reserve represents the transfer to statutory reserve of 12.5% of the profit after tax of UNICO CPFA Limited in line with section 69 of the Pension Reform Act 2004 (2014 as amended). 21. Reconciliation of profit before tax to cash generated from operations
Profit before tax Adjustment for net finance (income)/costs Operating profit Amortisation of intangible assets Share of associate's profit Dividend income Depreciation Impairment charge on PPE Profit or Loss on sale of tangible PPE Loss on sale of Investment Properties Operating cash flows before movements in working capital Movements in working capital: Inventories Trade and other receivables Trade and other payables Net cash from/(used in) operations - continuing operations Trade and other receivables Trade and other payables Net cash from/(used in) operations - discontinued operations Net cash from/(used in) operations
Group 2016 2015 N'000 N'000 1,766,721 2,296,181 563,382 478,900 2,330,103 2,775,081 38,426 29,403 (664,242) (739,435) 693,923 579,277 37,337 (8,532) (2,139) (1,000) 83,101 2,388,677 2,762,625 (4,029,243) (351,303) 916,557 (1,075,312)
94,208 (1,871,301) 201,177 1,186,709
65,135 (22,500)
809,791 (110,405)
42,635
699,386
(1,032,676)
1,886,095 20
UAC of Nigeria Plc Notes to the Consolidated financial statements for the period ended 31st March 2016 22. Disposal group held for sale and discontinued operations Disposal group held for sale Warm Spring Waters Nigeria Limited In 2013, management decided to dispose of its equity holding in Warm Spring Waters Nigeria Limited. The entity has been classified as a disposal group held for sale in accordance with IFRS 5 as it is available for sale in its present condition and a sale is highly probable. The sale is expected to be made to an identified buyer, subject to agreement of terms and conditions by both parties.The entity belongs to the Food and Beverages segment of the group. Exception to one year requirement IFRS 5 requires that except for certain exceptions, the sale of a non-current asset or disposal group should be expected to qualify for recognition as a completed sale within one year from the date of classification. However, during the year, there were certain factors considered to be beyond the control of management which have invariably extended the sale period beyond one year. These factors include but are not limited to the significant political changes in the location of operational base of the entity. These political activities restricted business transactions for a significant period in 2015. Management however, remains committed to concluding the sale within a reasonable time frame. Analysis of the results of the disposal group held for sale and distribution to owners is as follows:
Assets Non-current assets: Property, plant and equipment Deferred tax asset Current assets Inventories Trade and other receivables Cash and short-term deposits
Total Liabilities Non-current liabilities Borrowings Deferred taxation liabilities Current liabilities Trade and other payables Current income tax liabilities
Total
WSWNL Mar-16 Dec-15 N'000 649,213 649,213
N'000 675,501 28,362 703,863
39,021 49,735 23,440 112,196
45,791 47,893 28,997 122,681
761,409
826,544
-
9,668 9,668 76,429 76,429
94,315 14,282 108,597
86,097
108,597
Analysis of the results of the discontinued operations is as follows: WSWNL
Revenue Cost of sales Gross profit Other operating income Selling and distribution expenses Administrative expenses Operating profit Finance income Finance cost Profit before taxation Taxation Profit/(Loss) from discontinued operations
Mar-16 N'000 147,157 (94,967) 52,190 197 (36,855) (18,677) (3,146) (177) (3,323) (3,323)
Mar-15 N'000 173,607 (105,466) 68,142 448 (43,562) (21,263) 3,764 689 (261) 4,192 4,192 21
