UTV Media plc ( UTV or the Company or the Group )

Transcription

1 ( UTV or the Company or the Group ) Belfast, London & Dublin 18 March 2015: UTV Media plc today announces preliminary results for the year ended 31 December 2014 Financial highlights on continuing operations* Group revenue of 116.0m (2013 restated: 107.2m) Pre-tax profits of 17.2m (2013 restated: 17.0m) Group operating profit of 19.7m (2013: 20.1m) 2014 includes UTV Ireland start-up costs of 3.0m Net debt 46.2m (2013: 49.6m) Diluted adjusted earnings per share from continuing operations of 14.56p (2013 restated: 14.32p) Proposed final dividend of 5.43p giving a full year dividend of 7.25p (2013: 7.00p) * As appropriate, references to profit include associate income but exclude discontinued operations Operational highlights Improving macroeconomic environment in the UK and Ireland Strong audience performances across Radio and Television talksport revenues of 29.7m (2013: 24.3m) boosted by World Cup Strategic focus on radio and television UTV Connect, PropertyPal, UTV Drive and Recruit NI now divested UTV Ireland launched successfully on 1 January 2015 Prospects highlights Radio Ireland revenue (local currency) flat (down 10% after adjusting for foreign exchange), Radio GB revenue flat against strong 2014 comparison and Television revenue (excluding UTV Ireland) up 4% UTV Ireland performance impacted by delays to EPG positions, agency negotiations and slower than expected audience build. Losses for year now anticipated to be in the region of 6M Foreign exchange headwinds impacting profitability in Ireland John McCann, Group Chief Executive, UTV Media plc, said: Record audiences for talksport and market leading audiences in both Irish Radio and Television underpin these results, providing confidence that our new venture UTV Ireland, will emulate its older siblings and over time, build a stronger audience base. The significant uplift in GB Radio s profitability together with the recovery in Irish Radio and Television advertising are particularly pleasing. 1

2 Key dates 14 May 2015 Annual General Meeting & Interim Management Statement 29 May 2015 Record date for payment of dividends 15 July 2015 Payment of dividends 28 August 2015 Interim Results Announcement For further information contact: Investor Enquiries John McCann, Group CEO +44 (0) Norman McKeown, Group Finance Director +44 (0) Media Enquiries Orla McKibbin, Director of Communications +44 (0) / +44 (0) Maitland Martin Barrow +44 (0) / +44 (0)

3 Chairman s Statement Overview Your company made considerable progress during 2014, with turnover growing to 116.0M (2013: 107.2M) and pre-tax profits increasing to 17.2M (2013: 17.0M) even after absorbing pre-operational losses of 3.0M (2013: 0.1M) on our new television station, UTV Ireland, which successfully launched on 1 January Profit growth of 45% in our GB radio division was particularly strong and it was pleasing to record a return to profit growth in our Irish radio division. Despite the investment in UTV Ireland, which included a lower than budgeted capital expenditure of 5.6M, group net debt reduced by 3.4M. Results and dividends for the year* Group operating profit of 19.7M (2013: 20.1M) was after accounting for pre-operational losses on UTV Ireland of 3.0M (2013: 0.1M). After charging lower net interest costs of 2.4M (2013: 2.9M) and foreign exchange losses of 0.1M (2013: 0.2M), group profit before taxation was 17.2 M (2013: 17.0M). Group net debt was lower at 46.2M (2013: 49.6M). Dividends amounting to 6.8M (2013: 6.7M) were paid during the year, representing a final ordinary dividend for 2014 of 5.25p per share and an interim ordinary dividend for 2014 of 1.82p per share as shown in note 12. A final dividend of 5.2M representing 5.43p per share is proposed for approval at the Annual General Meeting. If approved, warrants in respect of it will be despatched on 15 July 2015 to shareholders on the register at the close of business on 29 May Review of activities With our renewed focus on broadcasting, preparations for the launch of UTV Ireland took centre stage in A licence was agreed with the Broadcasting Authority of Ireland, programming was acquired and commissioned, staff were recruited and trained, studio premises were fitted out and agreements were reached with all major platform providers. Although our new channel s licence is not that of a public service broadcaster, the Minister for Communications, Energy and Natural Resources designated it as having public service characteristics which facilitated carriage on the DTT platform, thus ensuring universal coverage in Ireland, and prominence on Electronic Programme Guides. Universal coverage and EPG prominence are prerequisites to achieving our ambition that UTV Ireland will be the second most watched channel, after state broadcaster RTE 1, within 2 years of launching. Pre-eminent audience delivery is at the heart of our broadcasting strategy and the Group s track record in delivering market leading positions in radio in Ireland and in television in Northern Ireland, is already well known, as is its achievement in significantly increasing the audience to talksport. In a statement to the market on 9 January 2015, we confirmed that a review of our strategic options in respect of our GB local radio stations was under way and advised that it may, or may not, lead to the disposal of some, or all, of our GB local radio stations. We also advised that any disposal would not include talksport, Sport Magazine, talksport International and any of our Irish radio stations. Our Irish radio stations continued to deliver impressive audience performances, occupying the number one slot in each of the major urban areas in which we operate, including Dublin. This strong audience delivery mitigated the worst effects of the extremely deep advertising recession which Ireland experienced over the past few years. More importantly, it provides firm foundations for growth as the Irish advertising market recovers. This recovery started to appear as we moved through 2014, though the euro exchange rate provided some headwind to growth. With the tailwind of the FIFA World Cup, talksport performed strongly in 2014, both in terms of audience and financial performance. talksport was the only UK broadcaster to broadcast live commentary of every single World Cup match, a total of 64 games. Audience reach achieved a record high of 3.3M weekly, 50% greater than ten years ago and underlining the continuing popularity of good quality radio. The station s pure sport focus means that more than four fifths of all talksport listeners are now male and over half are ABC1, underlining its unique appeal to advertisers. Our television channel in Northern Ireland maintained its long-standing position as market leader. Its audience success is built on the well-established formula of high quality local programming packaged around an attractive network schedule within a strong regional brand. Our share of the peaktime audience in Northern Ireland in *as appropriate, references to operating profit include income from associates and joint ventures but exclude discontinued operations. 3

4 Chairman s Statement 2014 was 24.7%, significantly higher than the ITV network average of 21.3% and more than 4 times greater than our nearest commercial competitor, C4. *as appropriate, references to operating profit include income from associates and joint ventures but exclude discontinued operations. 4

5 Chairman s Statement Prospects The year has started in line with our expectations for our established broadcasting assets. talksport s excellent audience performance underpinned our initiative to seek our advertisers support for improved airtime pricing. This should help us to maintain talksport s profitability in 2015 at the levels achieved in the 2014 FIFA World Cup year. In Q1, talksport s revenues are expected to be down by 2%. Our GB local radio stations continue to perform well, with 19% growth in listening hours being recorded in the most recent RAJAR research. Q1 airtime revenues are expected to be up by 4%. The recovery in the Irish radio advertising market now seems to be under way although growth is, as yet, reasonably modest. Our stations over time have consistently outperformed the market due to their excellent listenership positions. In the first quarter of 2015, we expect our Irish radio advertising revenues to be broadly flat with further weakening of the euro reducing this to around 10% down. The UK television advertising market is enjoying good growth in Q and television advertising revenue derived from London to our Northern Ireland television division, UTV, is expected to be up by 8% in the first quarter. Growth from our Dublin office to UTV is also forecast to be positive at 9% up in Q1. There continues to be some weakness in the Belfast marketplace where budget cuts recently introduced by the Northern Ireland Assembly are depressing government advertising expenditure, leading to a forecast 13% decline in revenue from that office. Overall, UTV Northern Ireland s television advertising is expected to be up by 3% in Q1. UTV Ireland We were delighted that UTV Ireland met its goal of launching across the Republic of Ireland on 1 January 2015, which it achieved well within budget, in spite of a number of challenges along the critical path. It took us substantially longer than we had anticipated to receive the designation of the channel s public service character which meant that we had very little time before the launch date for engagement with our prospective audience about EPG positions and, where necessary, retuning of DTT boxes. In turn, this delayed meaningful negotiations with advertising agencies. As a consequence, our initial audience levels and advertising revenues have been lower than planned. I am pleased to report that audience share is starting to grow and, two months into the launch, UTV Ireland was the second most watched channel in peaktime. Under a management team with a proven track record in delivering audience outperformance, I am confident that our ambition for UTV Ireland to be the second most watched channel after state broadcaster, RTE 1, within a two year timeframe will be achieved. While it is a very early stage in the financial year of a start up venture, the delay referred to above has led to a change in assumption for the financial performance of the new channel. Consequently the current view is that the new channel will incur losses in the region of 6M in Conclusion Our broadcast model is fairly simple to articulate: deliver significant audiences, sell those audiences effectively to advertisers and maintain a low cost base. Broadcasters usually find the first part of that model, audience delivery, the most difficult to accomplish but, as demonstrated in this report, it is something that your company has consistently achieved and, in time, will bring to our new growth platform, UTV Ireland. I would like to thank my colleagues on the board, the management and, most importantly, our staff for their tremendous hard work and commitment to the UTV businesses over the past year. Many long hours have been spent by all those involved with getting UTV Ireland on air, whilst their colleagues in other parts of the group have continued to work hard to ensure that their businesses maintain their strong market positions and profit contributions. We are very fortunate to have such a wonderful team of professional and passionate people striving to grow UTV. Richard Huntingford Chairman 18 March

6 Group Income Statement Notes Results before Exceptional Items 2014 Exceptional Items 2014 Results before Exceptional Items 2013 (restated) Exceptional Items 2013 Total 2014 Total 2013 (restated) Continuing operations Revenue 2 116, , , ,222 Operating costs (96,680) - (96,680) (87,359) - (87,359) Operating profit from continuing operations before tax and finance costs 2 19,363-19,363 19,863-19,863 Share of results of associates and joint venture Profit from continuing operations before tax and finance costs 19,677-19,677 20,102-20,102 Finance revenue Finance costs (2,407) - (2,407) (3,012) - (3,012) Foreign exchange loss (75) - (75) (188) - (188) Profit from continuing operations before tax 2 17,245-17,245 16,951-16,951 Taxation 3 (3,244) - (3,244) (3,379) 1,215 (2,164) Profit from continuing operations after tax 14,001-14,001 13,572 1,215 14,787 Discontinued operations Profit/(loss) from discontinued operations (201) - (201) 111 (1,157) (1,046) Profit for the year 13,800-13,800 13, ,741 Attributable to: Equity holders of the parent 13,643-13,643 13, ,473 Non-controlling interest ,800-13,800 13, ,741 Earnings per share (restated) Continuing operations Basic p 15.19p Diluted p 15.04p Adjusted p 14.47p Diluted adjusted p 14.32p Continuing and discontinued operations Basic p 14.10p Diluted p 13.96p Adjusted p 14.58p Diluted adjusted p 14.44p 6

7 Group Statement of Comprehensive Income Notes Profit for the year 13,800 13,741 Other comprehensive income Items that will not be reclassified subsequently to profit or loss: Actuarial gain on defined benefit pension schemes ,111 Income tax relating to items that will not be reclassified subsequently (72) (1,325) 288 3,786 Items that may be reclassified subsequently to profit or loss: Cash flow hedges: Loss arising during the year - (4) Less transfers to the income statement Exchange (loss)/gain on translation of foreign operations (3,379) 932 Income tax relating to items that may be reclassified (32) 78 (3,411) 1,327 Other comprehensive (loss)/profit for the year, net of tax (3,123) 5,113 Total comprehensive profit for the year, net of tax 10,677 18,854 Attributable to: Equity holders of the parent 10,520 18,586 Non-controlling interest ,677 18,854 7

8 Group Balance Sheet Notes (restated) ASSETS Non-current assets Property, plant and equipment 17,360 11,874 Intangible assets 172, ,139 Investments accounted for using the equity method Deferred tax asset 3 1,531 1, , ,812 Current assets Inventories 2,390 1,758 Trade and other receivables 23,502 22,784 Financial asset Cash and short term deposits 12,886 10,185 39,053 34,727 TOTAL ASSETS 231, ,539 EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Equity share capital 55,557 55,557 Capital redemption reserve Treasury shares (104) (123) Foreign currency reserve 3,571 6,950 Retained earnings 45,428 38, , ,965 Non-controlling interest TOTAL EQUITY 104, ,071 Non-current liabilities Financial liabilities 7 55,399 55,866 Pension liability 9 1,971 4,598 Provisions Deferred tax liabilities 3 34,266 35,066 92,008 95,941 Current liabilities Trade and other payables 28,058 23,161 Financial liabilities 7 3,668 3,939 Tax payable 1,909 1,727 Provisions ,444 29,527 TOTAL LIABILITIES 126, ,468 TOTAL EQUITY AND LIABILITIES 231, ,539 8

9 Group Cash Flow Statement Notes (restated) Operating activities Profit before tax (i) 17,044 17,062 Adjustments to reconcile profit before tax to net cash flows from operating activities Foreign exchange loss/(gain) Net finance costs 2,357 2,963 Share of results of associates and joint venture (272) (217) Non cash decrease in contingent consideration - (2,859) Consideration receivable from disposal of discontinued operations (1,175) - Amortisation and impairment of intangible assets Depreciation of property, plant and equipment 1,936 1,919 Loss from sale of property, plant and equipment 32 (4) Share based payments Difference between pension contributions paid and amounts recognised in the income statement (2,454) (3,224) Increase in inventories (632) (115) (Increase)/decrease in trade and other receivables (1,031) 1,339 Increase/(decrease) in trade and other payables 4,783 (2,987) Increase/(decrease) in provisions 70 (60) Cash generated from operations before exceptional costs 21,036 14,612 Exceptional costs - (227) Tax paid (2,480) (2,460) Net cash inflow from operating activities 18,556 11,925 Investing activities Interest received Proceeds on disposal of property, plant and equipment Purchase of property, plant and equipment (7,622) (1,768) Income received from associates and joint venture Proceeds from the disposal of discontinued operations Outflow on acquisition of subsidiary undertaking - (200) Net cash flows from investing activities (6,416) (1,665) Financing activities Borrowing costs (1,816) (1,891) Swap cost - (321) Dividends paid to equity shareholders (6,766) (6,677) Dividends paid to non-controlling interests (210) (460) Acquisition of treasury shares (506) - Repayment of borrowings (3,940) (4,216) Proceeds from borrowings 3,879 3,000 Net cash flows used in financing activities (9,359) (10,565) Net increase/(decrease) in cash and cash equivalents 2,781 (305) Net foreign exchange differences (80) 51 Cash and cash equivalents at 1 January 10,185 10,439 Cash and cash equivalents at 31 December 8 12,886 10,185 (i) Includes both continuing and discontinued operations. 9

10 Group Statement of Changes in Equity Equity Capital Foreign Cash flow Share Noncontrolling share redemption Treasury currency hedge Retained holder capital reserve shares reserve reserve earnings equity interest Total At 1 January , (1,523) 6,018 (251) 28,680 88, ,011 Profit for the year ,473 13, ,741 Other comprehensive (loss)/income in the year ,930 5,113-5,113 Total net comprehensive (loss)/income in the year ,403 18, ,854 Treasury shares issued - - 1, (1,521) (121) - (121) Share based payment Acquisition of noncontrolling interests (228) - Equity dividends paid (6,678) (6,678) (414) (7,092) At 31 December , (123) 6,950-38, , ,071 Profit for the year ,643 13, ,800 Other comprehensive (loss)/income in the year (3,379) (3,123) - (3,123) Total net comprehensive (loss)/income in the year (3,379) - 13,899 10, ,677 Acquisition of treasury shares - - (506) (506) - (506) Treasury shares issued (525) Share based payment Equity dividends paid (6,780) (6,780) (210) (6,990) At 31 December , (104) 3,571-45, , ,555 10

11 Notes to the accounts 1. Basis of preparation The Group s financial statements consolidate those of UTV Media plc, and its subsidiaries (together referred to as the Group ) and the Group s interest in associates and jointly controlled entities. The Group financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union as they apply to the financial statements of the Group for the year ended 31 December 2014 and applied in accordance with the Companies Act The accounts are principally prepared on the historical cost basis except where other bases are applied under the Group s accounting policies. The Group has adopted the following new standards that are relevant for the preparation of the financial statements for the year ended 31 December 2014: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements ( IFRS 11 ), IFRS 12 Disclosure of Interests in Other Entities, IAS 27R Separate Financial Statements and IAS 28R Investments in Associates and Joint Ventures. With the exception of new disclosures and the adoption of IFRS 11, the application of new standards effective from 1 January 2014 have not had an impact on the Group s financial statements. IFRS 11 establishes a principle that applies to the accounting for all joint arrangements, whereby parties to the arrangement account for their underlying contractual rights and obligations relating to the joint arrangement. On adoption of this standard the Group s existing joint ventures, which were previously accounted for by recognising the Group s share of the assets, liabilities, revenue and expenses relating to the joint venture, are now accounted for using the equity method. Although a number of line items within the Group Income Statement, Group Balance Sheet and Group Cash Flow have been restated for the year ended 31 December 2013, profit for the period and total equity of the Group are unaffected. The more significant changes within the Group Income Statement relate to reductions in revenues plus operating profit before finance of 549,000 and 59,000 respectively, with increases of 50,000 and 109,000 in losses from discontinued operations and the share of results of associates and joint ventures accounted for using the equity method, respectively. Within the Group Balance Sheet the more significant changes at 31 December 2013 relate to reductions in intangibles of 437,000, trade and other receivables of 781,000, cash and short term deposits of 506,000 plus trade and other payables 1,004,000, respectively, with an increase in investments accounted for using the equity method of 733,000. There was no impact on the Group s Statement of Comprehensive Income or the Group Statement of Changes in Equity. In 2013 certain of the Group s New Media businesses were identified as being non-core to the future strategy of the Group and have subsequently been disposed of or trading ceased. Consequently the Group Income Statement reflects the classification of these businesses as discontinued operations. The financial information set out in the preliminary announcement does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006 in respect of the accounts for the year ended 31 December The statutory accounts for the year ended 31 December 2013, upon which the Company's auditors have given a report which was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006, have been delivered to the Registrar of Companies. The statutory accounts for the year ended 31 December 2014 have yet to be signed. They will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies in due course. 11

12 Notes to the accounts 2. Revenue and segmental analysis The tables below present revenue and segment result information regarding the Group s operating segments for the years ended 31 December 2014 and 2013 on the basis of how the Group was managed during These business segments all operate as part of the Group s continuing operations. Revenue represents the amounts derived from the provision of goods and services which fall within the Group s ordinary activities, stated net of value added tax. Revenue is principally generated from advertising and sponsorship. Transfer prices between business segments are set on an arm s length basis in a manner similar to transactions with third parties. As outlined in the 2013 Report and Accounts, the Group s strategy was refined to focus predominately on broadcasting and to exit from non-core activities, all of which resided within the New Media division, a fourth operating segment previously reported on within the Group. These non-core activities have been classified as discontinued operations. Tibus and Simply Zesty, the continued activities which previously resided within the New Media operating segment, have been incorporated within the Television operating segment. The following tables present revenue, profit before tax and business segment information regarding the Group s business segments for the years ended 31 December 2014 and The figures for the year ended 31 December 2013 have been restated to reflect the adoption of IFRS11 as outlined in note 1, together with the change in segments noted above. Revenue Year ended 31 December 2014 Radio Radio GB Ireland Television Total Sales to third parties 56,396 20,463 39, ,043 Intersegmental sales 649 1,223 2,316 4,188 57,045 21,686 41, ,231 Year ended 31 December 2013 Radio Radio GB Ireland Television Total (restated) (restated) (restated) Sales to third parties 49,872 20,767 36, ,222 Intersegmental sales 541 1,219 2,783 4,543 50,413 21,986 39, ,765 12

13 Notes to the accounts 2. Revenue and segmental analysis (continued) Results Year ended 31 December 2014 Radio Radio GB Ireland Television Total Segment operating profit 11,331 5,384 6,496 23,211 Central costs (3,848) Associate and Joint Venture income 314 Profit before tax and finance costs 19,677 Net finance cost (2,357) Foreign exchange loss (75) Profit before taxation 17,245 Year ended 31 December 2013 Radio GB Radio Ireland Television Total (restated) (restated) (restated) (restated) Segment operating profit 7,807 5,121 9,700 22,628 Central costs (2,765) Associate and Joint Venture income 239 Profit before tax and finance costs 20,102 Net finance cost (2,963) Foreign exchange gain (188) Profit before taxation 16,951 13

14 Notes to the accounts 3. Taxation (a) Tax on profit on ordinary activities Current income tax: UK corporation tax on profits for the year (2,962) (2,453) Adjustments in respect of previous years (2,531) (2,205) Foreign tax: ROI corporation tax on profits for the year (116) (346) Adjustments in respect of previous years (27) 16 (143) (330) Total current tax (2,674) (2,535) Deferred tax: Origination and reversal of timing differences (580) (684) Adjustments in respect of previous years 10 (160) Tax charge in the income statement on operating activities (3,244) (3,379) Exceptional deferred tax credit - 1,215 Total tax charge (3,244) (2,164) The tax charge in the Income Statement is disclosed as: Tax charge on continuing operations (3,244) (2,164) Tax credit on discontinued operations - - Tax charge in the income statement (3,244) (2,164) Tax relating to items in the Statement of Comprehensive Income Deferred tax: Actuarial gain on pension schemes (72) (1,022) Revaluation of cash flow hedges - (61) Valuation of long term incentive plan (32) 139 Exceptional deferred tax charge - (303) Tax charge in the statement of comprehensive income (104) (1,247) 14

15 Notes to the accounts 4. Earnings per share Basic earnings per share are calculated based on the profit for the financial year attributable to equity holders of the parent and on the weighted average number of shares in issue during the year. Adjusted earnings per share are calculated based on the profit for the financial year attributable to equity holders of the parent adjusted for the exceptional items and the impact of net finance costs under IAS 19 Employee Benefits (Revised). This calculation uses the weighted average number of shares in issue during the year. Diluted earnings per share are calculated based on profit for the financial year attributable to equity holders of the parent. Diluted adjusted earnings per share are calculated based on profit for the financial year attributable to equity holders of the parent before exceptional items and the impact of net finance costs under IAS 19 Employee Benefits (Revised). In each case the weighted average number of shares is adjusted to reflect the dilutive potential of the awards expected to be vested on the Long Term Incentive Schemes. The split of the figures for the year ended 31 December 2013 between continuing and discontinued oprations has been restated to reflect the adoption of IFRS11 as outlined in note 1. The following reflects the income and share data used in the basic, adjusted, diluted and diluted adjusted earnings per share calculations: Net profit attributable to equity holders Continuing Operations Discontinued Operations Total Continuing Operations Discontinued Operations Total (restated) (restated) Net profit/(loss) attributable to equity holders 13,844 (201) 13,643 14,519 (1,046) 13,473 Adjustments to net financing costs Exceptional items (1,215) 1,157 (58) Total adjusted and diluted profit attributable to equity holders 14,031 (201) 13,830 13, ,938 Weighted average number of shares thousands thousands Shares in issue 95,903 95,903 Weighted average number of treasury shares (23) (325) Weighted average number of shares for basic and adjusted earnings per share (excluding treasury shares) 95,880 95,578 Effect of dilution of the Long Term Incentive Plan ,347 96,537 15

16 Notes to the accounts 4. Earnings per share (continued) Earnings per share From continuing operations (restated) Basic 14.44p 15.19p Diluted 14.37p 15.04p Adjusted 14.63p 14.47p Diluted adjusted 14.56p 14.32p From continuing and discontinued operations Basic 14.23p 14.10p Diluted 14.16p 13.96p Adjusted 14.42p 14.58p Diluted adjusted 14.35p 14.44p From discontinued operations Basic 0.21p (1.09)p Diluted 0.21p (1.08)p Adjusted 0.21p 0.12p Diluted adjusted 0.21p 0.11p 16

17 Notes to the accounts 5. Dividends Equity dividends on ordinary shares Declared and paid during the year Final for 2013: 5.25p (2012: 5.25p) 5,035 5,001 Interim for 2014: 1.82p (2013: 1.75p) 1,745 1,677 Dividends paid 6,780 6,678 Proposed for approval at Annual General Meeting (not recognised as a liability at 31 December) Final dividend for 2014: 5.43p (2013: 5.25p) 5,205 5, Financial asset Contingent consideration Contingent consideration receivable relates to amounts due in respect of the disposal of certain of the Group s discontinued businesses during the year. 7. Financial liabilities Current Current instalments due on bank loans 3,668 3,939 Non-current Non-current instalments due on bank loans 55,399 55,866 59,067 59,805 The bank loans at 31 December 2014 are stated net of 509,000 (2013: 730,000) of deferred financing costs. 8. Net Debt Bank loans (59,067) (59,805) Cash and short term deposits 12,886 10,185 (46,181) (49,620) 9. Pension schemes The IAS 19 deficit at 31 December 2014 is 1,971,000 compared with a deficit of 4,598,000 at 31 December The reduction in the deficit was primarily driven by adjustments realised following the actuarial review in the year plus increased funding by the company. The Group funded a discretionary amount of 1,209,000 towards the actuarial deficit in 2014 (2013: 1,209,000) by means of a cash transfer and has agreed to make a further payment of 1,209,000 in In addition, during the period, the option was exercised to transfer properties back to Group from the scheme for an agreed contribution of 1,450,000. For accounting purposes these transactions are treated as part of the schedule of contributions and hence are accounted for on a cash basis, with no de-recognition of the properties or recognition of any future liabilities in the Group s financial statements. 17

18 Notes to the accounts 10. Related party transactions The nature of related parties disclosed in the consolidated financial statements for the Group as at and for the year ended 31 December 2013 has not changed. There have been no significant related party transactions in the year ended 31 December This summary has been approved by our Directors for release to the Press today 18 March 2015 and the full printed Annual Report and Accounts will be posted to Shareholders and Stock Exchanges on 14 April Copies will be available to the public at the Company's registered office Ormeau Road, Belfast, BT7 1EB from that date. 18