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72
Financial Statements
27. Notes to the Consolidated Cash Flow Statement
Notes
Restated
2011
2010
£’000
£’000
Profit before tax on continuing operations
29,467
33,293
Profit before tax
29,467
33,293
Adjustments to reconcile profit before tax to net cash flows
Non-cash:
Realised profit on sale of property,
plant and equipment
(1,243)
(8,910)
Share of post tax profits of associates
and joint ventures accounted for using
the equity method
(124)
131
Reversal of writedown in held
for sale assets
(2,050)
-
Reversal of writedown of loan
to joint venture
(500)
-
Depreciation of property,
plant and equipment
12 18,064
15,668
Investment income
6
(924)
(928)
Interest expense
7 5,538
6,621
Amortisation of income share issue costs
15
29
Foreign exchange movements
(10)
-
Share option charge – excluding amounts
included above within Realised profit on
sale of property, plant and equipment
23
467
755
Working capital adjustments:
(Increase) / decrease in inventories
(798)
188
(Increase) / decrease in trade and
other receivables
(22,212)
(11,574)
Increase in trade and other payables
1,981
4,550
Cash generated from operations
27,671
39,823
Issue of ordinary shares
-
Issue costs paid on issuance of
ordinary shares
(277)
(253)
(277)
(253)
28. Related Parties
Relationships of Common Control or Significant Influence
WA Developments International Limited is owned by A Tinkler and W
Stobart. The Group made purchases totalling £93,000 (2010: £167,000)
from and sales totalling £161,000 (2010: £69,000) to WA Developments
International Limited. £nil (2010: £152,000) was due from and £nil
(2010: £135,000) was due to WA Developments International Limited at
the year end.
Stobart Air Limited was a subsidiary of WA Developments International
Limited. On 30 May 2009, Stobart Air Limited was acquired by the Group
for £9.9m (see note 11).
WA Developments International GMBH is a subsidiary of WA Developments
International Limited. During the year, the Group made sales of £12,000
(2010: £33,000) to WA Developments International GMBH of which £nil
(2010: £33,000) was owed to the Group at the year end.
Moneypenny Limited is a subsidiary of WA Developments International
Limited. During the year, the Group made sales of £230,000 (2010: £nil)
and purchases of £237,000 (2010: 250,000) from Moneypenny Limited.
£nil (2010: £nil) was owed by the Group at the year end.
VLL Limited is a subsidiary of WA Developments International Limited. During
the year, the Group made sales of £70,000 (2010: £nil) and made purchases
of £809,000 relating to the provision of transport services (2010: £nil) from
VLL Limited. £nil (2010: £nil) was owed by the Group at the year end.
AstSigns Limited is 27% owned by W Stobart. During the year, the Group
made purchases of £275,000 (2010: £349,000) from AstSigns Limited of
which £103,000 (2010: £28,000) was owed by the Group at the year end.
STA (2006) LLP is a joint venture of WA Developments International
Limited. During the year the Group made sales of £22,000 (2010:
£9,000) to STA (2006) LLP of which £nil (2010: £9,000) was owed to the
Group at the year end.
Associates and Joint Ventures
The Group had loans outstanding from its joint venture interest, Starion
Tottenham Court Road Limited of £2,053,000 (2010: £2,053,000) at the
year end of which £1,553,000 (2010: £2,053,000) has been provided for.
The Group had loans due to its associated interest, Ropewalks One LLP
of £18,000 (2010: £33,000) at the year end of which £18,000 (2010:
£33,000) has been provided for.
The Group had loans outstanding from its joint venture interest Westbury
Fitness Hull Limited of £471,000 (2010: £471,000) at the year end of which
£471,000 (2010: £471,000) has been provided for. A dividend of £nil
(2010: £256,000) was received in the year.
The Group had loans outstanding from its joint venture interest Westar
Limited of £2,022,000 (2010: £2,022,000) of which £1,822,000 (2010:
£1,822,000) has been provided for.
The Group made sales of £304,000 (2010: £nil) to its joint venture
interest, Stobart Biomass Products Limited of which £157,000 (2010:
£nil) was outstanding owed to the Group at the year end. The Group
had loans outstanding from Stobart Biomass Products Limited of
£1,038,000 (2010: £nil) at the year end.
The Group had loans due to its associated interest, Endeavour Ware
Limited of £416,000 (2010: £416,000) at the year end.
The Group had loans outstanding from its associate interest, Everdeal
Limited of £2,251,000 (2010: £nil) at the year end.
There were no other transactions between the Group and the joint
ventures and associates during the year ended 28 February 2011 and the
year ended 28 February 2010.
Key Management Personnel
Key management personnel are the Executive and Non-Executive
Directors as well as William Stobart and David Irlam who stepped down
as Directors in the year and whose remuneration is set out in the
Directors’ Remuneration Report.
During the year, A Tinkler made purchases of £nil (2010: £97,000), of
which £84,000 (2010: £166,000) was owed to the Group at the year
end. This was at an arms length rate.
29. Post Balance Sheet Events
On 18 May 2011 the Group completed a transaction issuing 77.3m ordinary
shares at 155 pence raising net cash of £114.9m. At the same time the Group
acquired the remaining 50% of Stobart Biomass Products Limited for £20m
comprising £11m of loan notes and 5.8m shares at 155 pence per share.
The accounting for the acquisition of Stobart Biomass Products Limited is
incomplete due to the proximity of the acquisition to the date of approval
of the financial statements.The vendor, AW Jenkinson, a Director of
Stobart Biomass Products Limited, will remain in the business and will
participate in the new incentive scheme.
The Group was also granted an option giving the right to purchase
Westbury Properties Limited before mid August 2011 for a consideration
based on an independent valuation. The funds will be used to invest in
assets which are expected to enhance the performance of the Group’s
business divisions, in particular development of the Group’s property assets.
The Group has also implemented a senior executive incentive plan which
covers up to 38 million Ordinary Shares which aligns the management’s
interests with shareholders’ interests.