Chemring Group PLC |Annual Report and Accounts 2012

More documents

Recommendations

Info

100 Financial statements Notes to the parent company financial statements for the year ended 31 October 2012 1. Chemring Group PLC accounting policies The financial statements have been prepared in accordance with applicable United Kingdom accounting standards. The particular accounting policies adopted have been applied consistently throughout the current and previous year and are described below. Accounting convention The financial statements are prepared under the historical cost convention, as modified by the revaluation of property, in accordance with the Companies Act 2006 and applicable accounting standards (UK GAAP). Related Parties The Company is exempt under FRS 8 Related Party Disclosures from disclosing transactions with other members of the Group. Revenue recognition Interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to its net carrying amount. Dividend income from investments is recognised when the shareholder’s rights to receive payment have been established. Tangible fixed assets Other than revalued land and buildings, property, plant and equipment are held at cost less accumulated depreciation and any recognised impairment loss. No depreciation is provided on freehold land. On other assets, depreciation is provided at rates calculated to write down their cost or valuation to their estimated residual values by equal instalments over their estimated economic useful lives, which are considered to be: Freehold buildings – up to 50 years Leasehold buildings – the period of the lease Plant and equipment – up to 10 years Investment in Group undertakings Investments are stated at cost less any provision for impairment in value. Operating leases Operating lease rental charges are taken to the profit and loss account on a straight-line basis over the life of the lease. Provisions A provision is recognised when the Company has a present legal or constructive obligation as a result of a past event and it is probable that settlement will be required of an amount that can be reliably estimated. Long term liabilities and provisions are discounted when the impact is material. Current tax Current tax, including UK corporation tax and foreign tax, is provided for at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted, or substantially enacted, by the balance sheet date. Deferred tax Deferred tax is provided in full at the anticipated tax rates on differences arising from the inclusion of items of income and expenditure in tax computations in periods different from those in which they are included in the financial statements. Deferred tax is not provided on timing differences arising from the revaluation of fixed assets where there is no commitment to sell the asset. Deferred tax assets and liabilities are not discounted. Special capital reserve The special capital reserve was created as part of a capital reduction scheme involving the cancellation of the share premium account which was approved by the Court in 1986, in accordance with the requirements of the Companies Act 1985. Foreign currencies The functional currency of the Company is sterling. Transactions in foreign currencies are translated into sterling at the rates ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates ruling at that date. These translation differences are dealt with in the profit and loss account. For a forward foreign exchange contract to be treated as a hedge the instrument must be related to actual foreign currency assets or liabilities, or to a probable commitment. It must involve the same currency or similar currencies as the hedged item and must also reduce the risk of foreign currency exchange movements on the Company’s operations. Gains and losses arising on these contracts are deferred and recognised in the profit and loss account, or as adjustments to the carrying amount of fixed assets, only when the hedged transaction has itself been reflected in the Company’s financial statements. For an interest rate swap to be treated as a hedge the instrument must be related to actual assets or liabilities or a probable commitment, and must change the nature of the interest rate by converting a fixed rate to a variable rate or vice versa. Interest differentials under these swaps are recognised by adjusting new interest payable over the periods of the contracts. If an instrument ceases to be accounted for as a hedge, for example because the underlying hedged position is eliminated, the instrument is marked to market and any resulting profit or loss recognised at that time. Bank borrowings Interest bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance charges, including premiums payable on settlement or redemption, and direct issue costs are accounted for on an accruals basis to the profit and loss account, using the effective interest method, and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. Pensions The Company operates a defined benefit pension scheme. The defined benefit scheme is a multi-employer scheme including employees of other Group companies. It is not considered possible to allocate scheme assets and liabilities between the various companies and accordingly schemes are accounted for as though they were defined contribution schemes. The amount charged to the profit and loss account is the contribution payable in the year. Differences between amounts payable and actually paid are shown as accruals or prepayments in the balance sheet. The Company also operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. Share-based compensation For grants made under the Company’s share-based incentive schemes, amounts which reflect the fair value of options awarded at the time of grant are charged to the profit and loss account. Further details can be found within note 3 of the group financial statements. Chemring Group PLC Report and Accounts 2012
101 2. Tangible assets Land and buildings £m Plant and equipment £m Cost At 1 November 2011 0.5 1.5 2.0 Additions - 0.1 0.1 At 31 October 2012 0.5 1.6 2.1 Depreciation At 1 November 2011 0.1 1.0 1.1 Charge for the year 0.1 0.2 0.3 At 31 October 2012 0.2 1.2 1.4 Net book value At 31 October 2012 0.3 0.4 0.7 At 31 October 2011 0.4 0.5 0.9 The Company had no capital commitments as at 31 October 2012 (2011: nil). Land and buildings represent leasehold improvements. 3. Investments Shares in subsidiary undertakings £m Loans to subsidiary undertakings £m Total £m Total £m Business review Corporate governance Financial statements Other information Cost At 1 November 2011 584.1 6.3 590.4 Capital contribution to subsidiary undertakings 8.2 - 8.2 Disposal (4.2) - (4.2) At 31 October 2012 588.1 6.3 594.4 Provision for impairment At 1 November 2011 and 31 October 2012 19.2 - 19.2 Net book value At 31 October 2012 568.9 6.3 575.2 At 31 October 2011 564.9 6.3 571.2 Chemring Group PLC Report and Accounts 2012
Page 1 and 2:
Chemring Group PLC | Annual Report
Page 3 and 4:
1 Financial performance Revenue - c
Page 5 and 6:
3 Business review Corporate governa
Page 7 and 8:
5 Balance sheet, cash flow and debt
Page 9 and 10:
7 Secondly, we will maintain a stro
Page 11 and 12:
9 evaluation of its RVIS remote vis
Page 13 and 14:
11 for flight-tests on the Typhoon
Page 15 and 16:
13 A400 is a thermite incendiary gr
Page 17 and 18:
15 US Energetic Materials Qualifica
Page 19 and 20:
17 addition, profit at Alloy Surfac
Page 21 and 22:
19 Overall working capital decrease
Page 23 and 24:
21 Principal risks and uncertaintie
Page 25 and 26:
23 Risk description Competitive ris
Page 27 and 28:
25 to 0.80 this year. In absolute t
Page 29 and 30:
27 The Group is involved with a num
Page 31 and 32:
29 The Rt Hon Lord Freeman*~ Non-Ex
Page 33 and 34:
31 All holders of ordinary shares a
Page 35 and 36:
33 Directors’ remuneration report
Page 37 and 38:
35 The Committee aims to align the
Page 39 and 40:
37 Element Non-executive directors
Page 41 and 42:
39 Planned application of the polic
Page 43 and 44:
41 Service contracts and policy on
Page 45 and 46:
43 Implementation section (audited)
Page 47 and 48:
45 Long term incentives Details of
Page 49 and 50:
47 Directors’ shareholdings To re
Page 51 and 52: 49 The appointment and removal of t
Page 53 and 54: 51 Nomination Committee Mr P Hickso
Page 55 and 56: 53 Independent auditors’ report t
Page 57 and 58: 55 Consolidated statement of compre
Page 59 and 60: 57 Consolidated balance sheet as at
Page 61 and 62: 59 Notes to the consolidated cash f
Page 63 and 64: 61 Accounting convention The financ
Page 65 and 66: 63 Deferred tax liabilities are rec
Page 67 and 68: 65 that no impairment has occurred
Page 69 and 70: 67 A segmental analysis of revenue
Page 71 and 72: 69 Operating profit is stated after
Page 73 and 74: 71 The total charge for the year ca
Page 75 and 76: 73 movements on derivatives, net of
Page 77 and 78: 75 14. Other intangible assets Deve
Page 79 and 80: 77 If stated under historical cost
Page 81 and 82: 79 The average credit period taken
Page 83 and 84: 81 22. Obligations under finance le
Page 85 and 86: 83 Liquidity risk The table below d
Page 87 and 88: 85 Analysed as: Included in current
Page 89 and 90: 87 26. Deferred tax The following a
Page 91 and 92: 89 The following awards were outsta
Page 93 and 94: 91 33. Discontinued operations The
Page 95 and 96: 93 Amounts recognised in the income
Page 97 and 98: 95 The principal assumptions used i
Page 99 and 100: 97 Independent auditors’ report o
Page 101: 99 Parent company statement of tota
Page 105 and 106: 103 6. Creditors due within one yea
Page 107 and 108: 105 12. Staff costs 2012 Number 201
Page 109 and 110: Notes 107 Business review Corporate
Page 111 and 112: Business review Corporate governanc
show all

Chemring Group PLC |Annual Report and Accounts 2012

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?