TIDM94JK
RNS Number : 6087R
Imperial Brands Finance PLC
30 June 2020
Company Number: 03214426
IMPERIAL BRANDS FINANCE PLC
Interim Financial Statements 2020
INTERIM MANAGEMENT REPORT
For the six months ended 31 March 2020
The Directors present their Interim Management Report together
with the condensed unaudited Interim Financial Statements of
Imperial Brands Finance PLC ("the Company") for the six months
ended 31 March 2020.
Business review and performance
The principal activity of the Company is to provide treasury
services to Imperial Brands PLC and its subsidiaries ("the Group").
There have been no changes in the composition of the Company in the
interim period.
The performance of the Company is dependent on external
borrowings and intragroup loans payable and receivable and interest
thereon, together with fair value gains and losses on derivative
financial instruments.
The profit for the six months ended 31 March 2020 was GBP240
million (2019: profit GBP58 million). Total shareholders' funds as
at 31 March 2020 were GBP2,648 million (2019: GBP2,357
million).
The directors do not recommend a dividend for the current
period. There were no aggregate dividends on the ordinary shares
recognised as a charge to shareholders' funds during the six months
ended 31 March 2020. (2019: GBPNil).
Principal risks and uncertainties
The Company is a wholly owned indirect subsidiary of Imperial
Brands PLC, which is the ultimate parent company within the Group,
and the Directors of the Group manage operations at a Group level.
The Company, as the main financing and financial risk management
company for the Group, undertakes transactions to manage the
Group's financial risks, together with its financing and liquidity
requirements.
The principal risks and uncertainties of the Company are
discussed in note 14 of the Company's Annual Report and Accounts
for the year ended 30 September 2019, which does not form part of
this report, but is available at www.imperialbrandsplc.com .
In addition to the principal risks and uncertainties of the
Company reported at 30 September 2019, the Company faced additional
uncertainty due to Covid-19. The Directors anticipate that this
will continue for the remaining six months of the financial
year.
COVID-19
In March 2020 the Imperial Brands PLC Group was impacted by the
global Coronavirus (Covid-19) pandemic, which resulted in
unprecedented government restrictions on the normal operations of
the Group across many countries. The restrictions put in place
initially resulted in a number of office and factory closures. The
Group has responded by adapting working practices through
activities such as strengthening its IT infrastructure and
accelerating the roll-out of software to facilitate remote
team-working, as well as encouraging a more flexible approach.
There have been modifications to working practices including
changing shift patterns to ensure appropriate infection controls
and social distancing for employees in manufacturing facilities. As
a result of this, manufacturing plants have continued to operate
and the Group is able to produce and distribute product to
customers to meet demand, while complying with all necessary safety
precautions to protect staff and business partners from the risks
arising from the pandemic.
To date, the observable impacts on the Group's activities have
been limited to low level changes in credit risk in the duty free
and travel retail operations area.
BREXIT
Following the UK's exit from the European Union on 31 January
2020, the Group has looked at the potential impacts of the UK
leaving the transition period on the 31 December 2020 without a
substantive trade agreement in place. The key risks remain a
potential increase in import duties and impact on UK customers;
additional risk of tobacco smuggling, inventory requirements to
ensure supply, impact on consumer confidence, and implications on
existing international tax legislation. In the event that these are
not addressed prior to 31 December 2020, we estimate there could be
additional costs to the Group of around GBP100 million, primarily
relating to the restructuring of the Group for tax purposes.
LIBOR
Following the announcement of the potential discontinuation of
LIBOR after the end of 2021, the Company has commenced an
evaluation of its floating rate debt and derivative positions
maturing after that date. The Company currently expects that an
appropriate alternative basis for the calculation of interest will
be available in the event LIBOR is no longer used.
Outlook
The business activity is expected to continue at levels similar
to the current level. The Company will continue to manage the
overall liquidity and financial risk management requirements of the
Group as they change over time. The Company will manage the Group's
financing requirement in combination with other Group entities
where it is beneficial to the Group as a whole.
Going concern
The Directors are satisfied that the Company has adequate
resources to meet its operational needs for the foreseeable future
and accordingly they continue to adopt the going concern basis in
preparing these Interim Financial Statements.
Directors' responsibility statement
The Board of Directors comprising J M Jones, O R Tant, T R W
Tildesley and M A Wall, confirms that:
-- the condensed Interim Financial Statements have been prepared
in accordance with applicable accounting standards and give a true
and fair view of the assets, liabilities, financial position and
profit or loss of the Company as required by Rule 4.2.4 of the
Disclosure Transparency Rules of the United Kingdom's Financial
Conduct Authority ("the DTRs"); and
-- the Interim Management Report includes a fair review of the
information required by Rule 4.2.7 of the DTRs, namely an
indication of important events that have occurred during the six
months ended 31 March 2020 and their impact on the condensed set of
Interim Financial Statements, and a description of the principal
risks and uncertainties for the remaining six months of the
year.
By order of the Board
J M Jones T R W Tildesley
Director Director
30/06/20 30/06/20
FINANCIAL STATEMENTS
For the six months ended 31 March 2020
Income Statement
Unaudited Unaudited Audited
Year ended 30
(In GBP million) Notes 6 months ended 31 March 2020 6 months ended 31 March 2019 September 2019
------------------------ ----- ---------------------------- ---------------------------- ---------------
Other operating income - - 1
Administrative expenses - (1) (3)
======================== ===== ============================ ============================ ===============
Operating loss - (1) (2)
Investment income 2 1,037 1,068 1,903
Finance costs 3 (741) (1,009) (1,766)
======================== ===== ============================ ============================ ===============
Profit before taxation 296 58 135
Taxation 4 (56) - (26)
======================== ===== ============================ ============================ ===============
Profit for the period 240 58 109
======================== ===== ============================ ============================ ===============
All activities derive from continuing operations.
The Company has no other comprehensive income other than that
included above and, therefore, no separate Statement of
Comprehensive Income has been presented.
Balance Sheet
Unaudited Unaudited Audited
(GBP million) Notes 31 March 2020 31 March 2019 30 September 2019
--------------------------------- ----- ------------- ------------- -----------------
Non-current assets
Trade and other receivables 7 281 1,637 110
Derivative financial instruments 6 816 473 677
================================= ===== ============= ============= =================
1,097 2,110 787
================================= ===== ============= ============= =================
Current assets
Trade and other receivables 7 33,129 32,118 33,238
Current tax assets 1 1 -
Cash and cash equivalents 159 13 1,505
Derivative financial instruments 6 270 261 137
================================= ===== ============= ============= =================
33,559 32,393 34,880
================================= ===== ============= ============= =================
Total assets 34,656 34,503 35,667
================================= ===== ============= ============= =================
Current liabilities
Borrowings (3,371) (3,274) (1,892)
Derivative financial instruments 6 (51) (586) (28)
Trade and other payables (16,441) (17,225) (18,234)
(19,863) (21,085) (20,154)
================================= ===== ============= ============= =================
Non-current liabilities
Borrowings (10,716) (10,039) (11,697)
Derivative financial instruments 6 (1,429) (1,022) (1,408)
(12,145) (11,061) (13,105)
================================= ===== ============= ============= =================
Total liabilities (32,008) (32,146) (33,259)
================================= ===== ============= ============= =================
Net assets 2,648 2,357 2,408
================================= ===== ============= ============= =================
Equity
Share capital 2,100 2,100 2,100
Retained earnings 548 257 308
Total equity 2,648 2,357 2,408
================================= ===== ============= ============= =================
Statement of Changes in Equity (unaudited)
Share Retained Total
GBP million capital earnings equity
--------------------------- --------- --------- -------
At 1 October 2019 2,100 308 2,408
=============================== ========= ========= =======
Profit for the period - 240 240
Total comprehensive income - 240 240
At 31 March 2020 2,100 548 2,648
=============================== ========= ========= =======
Unaudited
Share Retained Total
capital earnings equity
At 1 October 2018 2,100 199 2,299
=============================== ========= ========= =======
Profit for the period - 58 58
Total comprehensive income - 58 58
At 31 March 2019 2,100 257 2,357
=============================== ========= ========= =======
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 March 2020
1. Accounting Policies
These Interim Financial Statements have been prepared in
accordance with the Companies Act 2006 and applicable accounting
standards in the UK and Republic of Ireland.
Basis of Preparation
The condensed Interim Financial Statements comprise the
unaudited results for the six months ended 31 March 2020 and 31
March 2019, together with the audited results for the year ended 30
September 2019.
The information shown for the year ended 30 September 2019 does
not constitute statutory accounts within the meaning of section 434
of the Companies Act 2006, and is an abridged version of the
Company's Financial Statements for that year. The Auditors' Report
on those Financial Statements was unqualified and did not contain
any statements under section 498 of the Companies Act 2006. The
Financial Statements for the year ended 30 September 2019 were
approved by the Board of Directors on 12 December 2019 and filed
with the Registrar of Companies.
This condensed set of Interim Financial Statements for the six
months ended 31 March 2020 has been prepared in accordance with the
Disclosure and Transparency Rules of the Financial Conduct
Authority and FRS 104 'Interim Financial Reporting' ("FRS 104") as
adopted by the Financial Reporting Council ("FRC") using the
recognition and measurement requirements of FRS 100 'Application of
Financial Reporting Requirements' ("FRS 100") and FRS 101 'Reduced
Disclosure Framework' ("FRS 101"). The condensed set of Interim
Financial Statements for the six months ended 31 March 2020 should
be read in conjunction with the Annual Report and Financial
Statements for the year ended 30 September 2019.
The Company has taken advantage of the following disclosure
exemptions under FRS 101:
a) the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payments
b) the requirements of paragraphs 62, B64(d), B64(e), B64(g),
B64(h), B64(j) to B64(m), B64(n)(ii), B64 (o)(ii), B64(p),
B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations
c) the requirement in paragraph 38 of IAS 1 Presentation of
Financial Statements to present comparative information in respect
of:
i. paragraph 79(a)(iv) of IAS 1 Presentation of Financial Statements
ii. paragraph 73(e) of IAS 16 Property, Plant and Equipment
iii. paragraph 118(e) of IAS 38 Intangible Assets
d) the requirements of paragraphs 10(d) and 10(f) of IAS 1 Presentation of Financial Statements
e) the requirements of IAS 7 Statement of Cash Flows
f) the requirements of paragraphs 30 and 31 of IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors
g) the requirements of paragraph 17 of IAS 24 Related Party Disclosures
h) the requirements in IAS 24 Related Party Disclosures to
disclose related party transactions entered into between two or
more members of a group, provided that any subsidiary which is a
party to the transaction is wholly owned by such a member
i) the requirements of paragraphs 134(d) to 134(f) and 135(c) to
135(e) of IAS 36 Impairment of Assets.
The Company is a wholly owned indirect subsidiary of Imperial
Brands PLC and is included in the consolidated Financial Statements
of Imperial Brands PLC. Consequently, the Company has taken
advantage of the exemption conferred by FRS 101 paragraph 8(h) and
not presented a cash flow statement.
New accounting standards adopted in the period
IFRS 16 'Leases' was adopted with effect from 1 October 2019,
which has had no material effect on the Company. There have been no
other new standards or amendments which became effective for the
current reporting period that have had a material effect on the
Company.
IFRIC 23 'Uncertainty over income tax treatments' became
effective for the period beginning 1 October 2019. The
interpretation clarifies how to apply the recognition and
measurement requirements in IAS 12 'Income Taxes' when there is
uncertainty over income tax treatments. The adoption of this
interpretation did not have a material effect on the Company's net
assets or results.
2. Investment income
Unaudited Unaudited Audited
6 months ended 31 March 6 months ended 31 March Year ended 30 September
(In GBP million) 2020 2019 2019
---------------------------- ---------------------------- ---------------------------- ----------------------------
Interest receivable from
Group undertakings 451 410 905
Interest on bank deposits 3 - 4
Exchange gains on monetary
assets and liabilities 14 418 -
Fair value gains on
external derivative
financial instruments 569 240 671
Fair value gains on
intragroup derivative
financial instruments - - 323
1,037 1,068 1,903
============================ ============================ ============================ ============================
3. Finance costs
Unaudited Unaudited Audited
6 months ended 31 March 6 months ended 31 March Year ended 30 September
(In GBP million) 2020 2019 2019
---------------------------- ---------------------------- ---------------------------- ----------------------------
Interest payable to Group
undertakings 75 101 200
Interest on bank loans and
other loans 205 218 442
Exchange losses on monetary
assets and liabilities - - 279
Fair value losses on
external derivative
financial instruments 438 347 845
Fair value losses on
intragroup derivative
financial instruments 23 343 -
741 1,009 1,766
============================ ============================ ============================ ============================
4. Tax on profit
Analysis of charge in the period:
Unaudited Unaudited Audited
6 months ended 31 March 6 months ended 31 March Year ended 30 September
(In GBP million) 2020 2019 2019
---------------------------- ---------------------------- ---------------------------- ----------------------------
UK Corporation tax on
profits for the period 56 - 26
Withholding tax - - 1
============================ ============================ ============================ ============================
Double taxation relief - - (1)
============================ ============================ ============================ ============================
Current tax 56 - 26
============================ ============================ ============================ ============================
Origination and reversal of
timing differences - - -
Effect of change in future
tax rate - - -
============================ ============================ ============================ ============================
Deferred tax - - -
============================ ============================ ============================ ============================
Total taxation 56 - 26
============================ ============================ ============================ ============================
5. Fair value of financial assets and liabilities
There are no material differences between the carrying value of
the Company's financial assets and liabilities and their estimated
fair value, with the exception of bonds. The fair value of bonds is
estimated to be GBP12,701 million (31 March 2019: GBP11,915
million) and has been determined by reference to market prices at
the balance sheet date. The carrying value of bonds is GBP12,621
million (31 March 2019: GBP11,223 million). The fair value of all
other borrowings is considered to be equal to their carrying
amount.
6. Derivative financial instruments
Unaudited Unaudited Audited
6 months ended 31 March 6 months ended 31 March Year ended 30 September
(In GBP million) 2020 2019 2019
---------------------------- ---------------------------- ---------------------------- ----------------------------
Assets
Interest rate swaps 833 476 669
Foreign exchange contracts 150 52 104
Intragroup forward foreign
currency contracts 84 203 -
Cross currency swaps 19 3 41
============================ ============================ ============================ ============================
Total carrying value of
derivative financial
assets 1,086 734 814
============================ ============================ ============================ ============================
Liabilities
Interest rate swaps (1,151) (805) (1,105)
Foreign exchange contracts (25) (9) (2)
Intragroup forward foreign - (504) -
currency contracts
Cross currency swaps (341) (318) (367)
Total carrying value of
derivative financial
liabilities before
collateral (1,517) (1,636) (1,474)
============================ ============================ ============================ ============================
Collateral 37 28 38
============================ ============================ ============================ ============================
Total carrying value of
derivative financial
liabilities (1,480) (1,608) (1,436)
============================ ============================ ============================ ============================
Total carrying value of
derivative financial
instruments (394) (874) (622)
============================ ============================ ============================ ============================
Analysed as:
Interest rate swaps (318) (329) (436)
Foreign exchange contracts 125 43 102
Intragroup forward foreign
currency contracts 84 (301) -
Cross currency swaps (322) (315) (326)
Collateral 37 28 38
============================ ============================ ============================ ============================
Total carrying value of
derivative financial
instruments (394) (874) (622)
============================ ============================ ============================ ============================
The Company's derivative financial instruments are held at fair
value. Fair values are determined based on observable market data
such as yield curves and foreign exchange rates to calculate the
present value of future cash flows associated with each derivative
at the balance sheet date, and are consistent with those applied
for the year ended 30 September 2019.
All financial assets and liabilities are carried on the balance
sheet at amortised cost, other than derivative financial
instruments which are carried at fair value. Derivative financial
instruments are valued using techniques based significantly on
observable market data such as yield curves and foreign exchange
rates as at the balance sheet date (Level 2 classification
hierarchy per IFRS 7). There were no changes to the valuation
methods or transfers between hierarchies during the period. With
the exception of capital market issuance, the fair value of all
financial assets and financial liabilities is considered to
approximate to their carrying amount.
7. Trade and other receivables
Unaudited Unaudited Audited
6 months ended 31 March 2020 6 months ended 31 March 2019 Year ended 30 September
2019
(In GBP million) Current Non-Current Current Non-current Current Non-Current
--------------------- ------------ ------------------ ------------ ------------------ ---------- ---------------
Amounts owed by
Group undertakings 33,127 281 32,116 1,637 33,234 110
Other receivables
and prepayments 2 - 2 - 4 -
===================== ============ ================== ============ ================== ========== ===============
33,129 281 21,118 1,637 33,238 110
===================== ============ ================== ============ ================== ========== ===============
Amounts owed by Group undertakings are unsecured, both interest
bearing and non-interest bearing and can be either repayable on
demand or have fixed repayment dates. Within current receivables
there is a Euro denominated loan due from Imperial Tobacco Overseas
Holdings Limited Dutch Branch with a carrying value of GBP887
million (31 March 2019: GBP859 million). As this loan has no fixed
repayment date and as it must be repaid on or before 1 October 2022
it has been classified as a current receivable.
8. Related party transactions
The Company has taken advantage of the Group dispensation
permitted under FRS 101 for 100% owned Group subsidiaries, not to
disclose intragroup transactions undertaken during the period.
A loan facility with the Compañía de Distribución Integral
Logista Holdings S.A. group, a partly indirectly owned subsidiary
of Imperial Brands PLC, had been amended in March 2018, with an
interest rate equal to the ECB base rate plus 0.75% with a
scheduled repayment date no earlier than June 2024. Details of the
constituent loans in the period are as follows.
During the period the Company charged interest and other
expenses to Compañía de Distribución Integral Logista S.A.U. to the
value of EUR1 million (31 March 2019: EUR2million). At 31 March
2020, the Company had an outstanding balance receivable due from
Compania De Distribucion Integral Logista SAU totalling EUR746
million (31 March 2019: EUR786 million).
During the period the Company was charged interest to the value
of EUR5 million by Logista France SAS (31 March 2019: EUR5
million). At 31 March 2020, the Company had an outstanding balance
payable to Logista France SAS totalling EUR1,348 million (31 March
2019: EUR1,516 million).
During the period the Company was charged interest to the value
of EUR4 million by Logista Italia SpA (31 March 2019: EUR4
million). At 31 March 2020, the Company had an outstanding balance
payable to Logista Italia SpA totalling EUR1,000 million (31 March
2019: EUR970 million).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR QBLFXBQLXBBB
(END) Dow Jones Newswires
June 30, 2020 12:34 ET (16:34 GMT)
Imp.br.fin.26 (LSE:94JK)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Imp.br.fin.26 (LSE:94JK)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024