Accounting – Analysis of Zotefoams Plc
1.0 Introduction
Zotefoams Plc is a multinational company that produces a wide range of polyolefin closed cell
and cross-linked forms that are utilized in the manufacture of sports equipment, in construction,
automotive industry, and aerospace and also in the production of medical equipments. The
company’s headquarters is in Croydon, London and also with a major subsidiary in Kentucky,
USA. The current chairman is Nigel Howard.
2.0 Zoteforms business strategy
Zoteforms business strategy is to enhance the expansion and growth of Polyolefin and HP by
utilizing organic growth through partnership or acquisions of the required companies that have
the related and relevant technologies or products. Zoteforms market strategy is to target the EU
and the huge North American market.
3.0 Accounting Standards
Accounting – Analysis of Zotefoams
2
The financial statements have been prepared in accordance to the provisions of the Companies
Act as per Group financial statements and also in compliance to International Accounting
Standards (IAS article 4 of the standards regulations) and also in line with the International
Financial Reporting Standards (IFRS). (Drucker, 1999)
4.0 Management performance
Horizontal Analysis
Zoteforms Plc sales increased by 6.7% for the year ended 2011. Cost of goods sold for the same
period also increased by 6%. The gross margin also increased by the same rate. The Return on
Capital Employed (ROCE) in the year 2012 was 20.8% on pre-tax profits excluding assets that
are intangible. The year to year investments resulted in a much lower ROCE. The profit earned
before tax (EBIT) was 8% for the year 2012. The Earnings per Share (EPS) increased by 2.5%
that stood at 12.1p from 11.8p in 2011.
Vertical Analysis
The revenues of Craigielaw increased by 0.1 % for year seven. The cost of sales for Craigieilaw
also increased by 0.4%. It’s EPS increased by 3.1% for year 7 which amounted to 20p from the
previous 19.4p in year 6. (Ehrhardt and Brigham, 2008)
Craigielaw is a multinational Company that is based in the UK. Over 86% of its revenues come
from foreign countries though almost its entire production is done in the UK.
Trend Analysis
Accounting – Analysis of Zotefoams
3
Sales and the Gross profit for the year 2012 increased by almost a similar margin of 6%. This
was mostly due to the increase of the sales in HPP sales which grew by 51% and which
accounted to about 8% of the total group’s sale.
Ratio Analysis
The total assets usage for Zoteforms plc is 0.88 for the year 2012 while 2011 was 0.86. The non
current usage for the year 2012 and 2011 were 1.5 and 1.4 times respectively. This shows a
general trend of improvement for about 2.3%.
5.0 Cash flow Analysis
Horizontal
The growth of total assets increased by 3.9% to $53.527 million from the previous
$51.515million, due to increased investment in modern technology.
Total liabilities increased by 9.7% while the current liabilities reduced by 24.1%.
Trend
This difference between the total liabilities increase Percentages and the reduced short-term
liabilities is due to the interest bearing long-term loans that were acquired by Zoteforms which
amounted to $2.962 million. The net assets in the year 2012 amounted to $17.853 million while
Accounting – Analysis of Zotefoams
4
2011 was $19 million which reflected a reduction of 6% in net assets in the year 2012. Inventory
increased by 12% while other receivables also increased by 10% for the same period ending
- Craigielaw total assets decreased by 0.7% in year 7 which were 1.681 billion pounds and
1.6929 billion pounds for year 7 and 6 respectively.
Vertical
Trade creditors decreased by 37% in the year 2012 from the year 2011 i.e. the creditors total
credit amounted to $7.082 million in the year 2012 while the year 2011 had $9.334 million. The
total debt paid is slightly more than 50% of the net income of the year 2011.
Ratios
The Operating Cash flows ratios for year 7 and 6 for Craigielaw were 38.1% and 31%
respectively while the cash Flow margin for the same period were 1% each. The Cash flows
ratios for the years 2012 and 2011 for Zoteforms were 88.8% and 65.2% respectively while the
cash Flow margin for the same period were 13.35 and 13.7% respectively. The current ratio is
one of the short-term methods of analyzing the risk of defaulting in payments because of
shortfall in financial resources. Current ratio = Current assets – Current liabilities. Zoteforms
current ratio for year 2012, was $21.95/ $7.082, 2011, $19.863/$9334, = 3.1 for 2012 and 2.1 for - The liabilities are covered at twice for 2011 and three times for the year 2012. With a
higher liquidity the company cannot default or be unable to meet its short-term obligation.
Craigielaw’s current ratio for year 7 is 1.1 and 1.2 for year 6. These ratios are below the required
threshold of 2 and above as the currents assets should cover the liabilities as at least twice.
Accounting – Analysis of Zotefoams
5
The quick ratio = Total current assets – inventories/ current liabilities = 2.2 for the year 2012 and
1.5, which makes the ratio favorable as they meet the 1:1 threshold that’s required for effective
management of the company’s liquidity position. The quick ratio for Craigielaw for year six was
0.2 and 0.6 which are also below the standards of 1:1.
6.0 Liquidity and Working capital
Vertical Analysis
Sales by the Operating Segments included Continental Europe which had the highest sales at
45% which topped the revenue by regions segments. It was followed by North America at 27%,
UK, Eire and the rest of the world at 21% and 7% respectively. Packaging led by 32% of the
total revenue by market segments. It was followed by industrial sector, 17%, transportation 16%,
Building and construction 11%, Medical 8%, Sports and leisure 11% and others at 5%.
Zoteforms Plc Revenue By Segment
Packaging
Industrial
Transportationa
Sports and Leisure
Building and construction
Medical
Others
Horizontal Analysis
Accounting – Analysis of Zotefoams
6
Sales by the Operating Segments for Craigielaw included United Kingdom which had sales
amounting to 14% of the total sales by regions segments. America’s total sales amounted to
29%, and the rest of Europe led the sales by segments at 33% while the rest of the whole stood at
11% and Far East 13%. Coatings and Sealants led by 48% of the total revenue by market
segments. It was followed by Polymer Products and Fibres & Chemicals at 13 and 39%
respectively.
Craigielaw’s Sales Revenue by Market Segments
Coatings and Sealants
(%)
Polymer Products (%)
Fibres & Chemicals (%)
Trend Analysis
Gross profit of Zoteforms for the year 2012 increased by 6% from the year 2011. The operating
expenses were managed effectively which resulted in favourable EBIT and NPAT (Profit After
Tax)
Ratio analysis
Liquid assets are those assets that can be easily converted into cash. The current ratio is one of
the short-term methods of analyzing the risk of defaulting in payments because of shortfall in
Accounting – Analysis of Zotefoams
7
financial resources. Current ratio = Current assets – Current liabilities. Zoteforms current ratio
for year 2012, was $21.95/ $7.082, 2011, $19.863/$9334, = 3.1 for 2012 and 2.1 for 2011. The
liabilities are covered at twice for 2011 and three times for the year 2012.
7.0 Investor ratios
Horizontal and vertical
The Return on Capital Employed (ROCE) in the year 2012 was 20.8% on pre-tax profits
excluding assets that are intangible. The year to year investments resulted in a much lower
ROCE. (Garrison, Noreen and Brewer, 2009). Craigielaw’s earnings before interest and taxes for
the seventh year increased by 14.5%.
Ratio Analysis
Inventory Turnover = Cost of Goods Sold/Average inventory. It shows the rate at which
inventory is being turnover in order to generate revenue. A higher ratio indicates efficiency in the
management of the stocks by reducing and minimizing the cost of inventory as investment.
Inventory turnover for Zoteforms Plc = 5 for 2011 and 2012. The inventory turns five turns in a
year. Total assets turnover = sales / average total assets = 1 and 0.8 for 2012 and 2011
respectively. The firm in the year 2012 generate one dollar for every dollar invested while in
2011 it generated 0.8 dollars for every dollar invested in the company. Craigielaw inventory
turnover for year six and seven were 5.31 and 5.33 respectively.
8.0 Gearing (leverage)
Horizontal and vertical analysis
Accounting – Analysis of Zotefoams
8
Zoteforms leverage ratios indicate the company’s reliance on foreign debts or external financing.
Debts to Assets ratio = Total debt/ Total assets. These equals to 8% in 2012 and 3% in 2011. The
gearing for Craigielaw increased by 8% in the seventh year.
Ratios and Trends.
The debt equity ratio for Zoteforms for the years 2012 and 2011 were 50% and 46.13%
respectively while the interest cover for the same period were 124.4 and 78.57 times. While the
debt equity ratio for Craigielaw for year 7 and 6 were 30.53% and 22.55% respectively. The
interest covers for the same period were 3.5 and 0.5 respectively. These shows an increasing
trend for both companies but Zoteforms is performing much better than Craigielaw.
9.0 Non-Financial Performance
Zoteforms avails all its non-financial performance on its websites. The information is qualitative
and touches on all the sections of the company including safety, health and the environment
commonly referred to as SHE. Zoteforms engages in Corporate Social Responsibility and also on
environmental conservation. It has complied with all the provisions of the United Kingdom
corporate and governance policies code. Zoteforms has extensive standards on safety, employee
health and environmental policies and implementation of relevant procedures. It also has modern
fire protection systems that were installed in the current financial year. The company also
maintains its intellectual property rights to ensure its legally protected from unscrupulous traders.
It also maintains a well funded research and development program that researches on modern
production methods while renewing its patents and obtaining licences to all existing portfolios.
Zoteforms has undertaken advanced environmental methods to develop and produce a cross-
linked high intensive polymer forms. The company utilizes Nitrogen gas that comprises most of
Accounting – Analysis of Zotefoams
9
the normal air we inhale to expand and strengthen the forms into high density products which are
completely harmless to the environment and also to human beings when ingested.
www.zoteform.com The Company also engages in water and energy conservation which are
controlled by the management.
10.0 Conclusion
Zoteforms Plc has a solid financial structure that can be utilize to expand its operations to other
foreign markets.
11.0 Recommendations
The management of Zoteforms should adopt strategic measures that can spur growth as its
current growth strategy is not so effective and its only operating at a breakeven point. The
expansion strategy should diversify the financial base of Zoteforms from its traditional markets
to other emerging markets. The investors large capital outlays
12.0 Reference
Drucker, F. (1999) Management Challenges of the 21st Century. New York: Harper Business.
Ehrhardt, M., Brigham, E. (2008) Corporate Finance: A Focused Approach (3rd Ed.). p.131.
(Garrison, R., Noreen, W., Brewer, P. (2009). Managerial Accounting . McGraw-Hill Irwin.
Accounting – Analysis of Zotefoams
10
13.0 Appendices
Workings
Craigielaw financial
statements
Year 7
Group Revenue 22.40%
[(2081.5 – 2080.3)/2080.3] x
100
Group profit before tax 20.40%
[(133.7 – 116.5 )/116.5]x100
Dividends per share 20.80%
63.1 – 63.1 )/63,1]x100
Earnings per share 21%
Accounting – Analysis of Zotefoams
11
[(20p – 19.4 )/19.4]x100
Ratios
Year 7
Net profit on sales 24.10%
(95.6/ 2081.5)x100
Dividend cover 3.9 times
20p/ 65.1
Return on shareholders’
equity
24.70%
(43.9/ 405.7)x100
Craigielaw
(a) Investor Ratios
Year 7 Year 6
Ratio Definition in words Workings Result Workings Result
Earnings per share 84.1 20 pence 81.4 12 pence
(note 12 for shares issued) 405.7 677.2
Price earnings ratio 260 22.2
times
210 21.6 times
20p 19.4
Dividend cover (payout ratio) Earnings per share 20 3.3 times 19.4 3.2 times
Based on proposed dividend Dividend per share 65.1 63.1
Dividend cover (payout ratio) Earnings per share 20 3.9 times 20 3.9 times
Based on dividend paid in year Dividend per share 65.1 65.1
Dividend yield 65.1
100%
1.40% 63.1
100%
1.40%
100%
260 210
Accounting – Analysis of Zotefoams
12
Craigielaw
(d) Gearing (Leverage)
Ratio Definition in words Year 7 Year 6
Workings Results Workings Results
Debt/ equity ratio (227.2)
100%
30.53% (172.6)
100%
22.55%
100%
744.1 765.5
Interest cover 133.7/38.2 3.5 116.5/213.1 0.5
Craigielaw
(b) Analysis of management performance
Ratio Definition in words Year 7 Year 6
Workings Result Workings Results
Return on shareholders’ equity Profit after tax for equity
holder x 100%
84.1
100%
20.73% 81.4
100%
12.02%
Share capital and reserves 405.7 677.2
Return on capital employed ´ 1% 133.7
100%
15.22% 116.5
100%
15.22%
(continuing only) 744.1 765.5
Operating profit on sales
(continuing only)
Op profit before interest and
tax 100%
133.7
100%
6.42% 116.5
100%
5.60%
Sales (revenue) 2081.5 2081.3
Gross profit percentage Gross profit
100
624.8
100%
30% 629.1
100%
30.24%
Accounting – Analysis of Zotefoams
13
(continuing only) Sales (revenue) 2081.5 2080.3
Total assets usage Sales (revenue) 2081.5 1.24
times
2080.3 1.23 times
(continuing only) Total assets 1681 1692.9
Non-current(Fixed) assets
usage*
Sales (revenue) 2081.5 2.12
times
2080.3 2.32 times
(continuing only) Property, plant and equipment 963.9 898.6
Craigielaw Cash
flow ratios
year 7 year 6
Operating Cash
Flows Ratio
Cash flows from operations/current liabilities
708
2
246.4/646.3 38.10
%
213.1/688.3 31.00
%
Cash flow
margin ratio
Cash flow from
operating cash/Net
sales
246.4/246.4 1.00% 213.1/213.1 1.00%
Cash flow fom
operations/ Av
total liabilities
246.4/932.15 26% 213.1/932.15 23%
Current Ratio Current assets/
current liabilities
717.1/646.3 1.1 794.3/688.3 1.15
Quick ratio Current Assets –
Inventory/current
liabilities
717.1-
258.7/646.3=0
.71
794.3-
287.7/688.3=0
.74
Accounting – Analysis of Zotefoams
14
Workings
Zoteforms financial statements Year 7
2012 2011
Group Revenue 6.70% _
[(47188 –
44208)/44208] x 100
_
Group profit before tax 8.40% _
[(5926 – 5465
)/5465]x100
_
Dividends per share -37.90% _
36 –58 )/58]x100 _
Earnings per share 3% _
[(12.1 – 11.8
)/11.8]x100
_
Ratios
2012 2011
Net profit on sales 24.10% 10.35%
(4728/ 47188)x100 4554/44208× 100
Dividend cover 3.9 times 3 Times
36/12.1
Return on shareholders’ equity 16.60% 15.50%
profit after taxes/shareholders equity (5926/ 35690)x100 5465/35252 *100
Zoteforms
a) investor ratios
2012 2011
Ratio Definition in words Workings Result Workings Result
Earnings per share 12.1 11.8
(note 12 for shares
issued)
Price earnings ratio
current share /earnings
per share
200 16.5 times 190 16.1
times
12.1 11.8
Dividend cover (payout
ratio)
Earnings per share 12.1 1/3 times 11.8 0.2
times
Based on proposed
dividend
Dividend per share 36 58
Dividend cover (payout
ratio)
Earnings per share 12.1 1/3 times 11.8 0.2
times
Based on dividend paid
in year
Dividend per share 36 58
Dividend yield =
div per share/current Mkt
price per share
36/200 100% 18.00% 58/190
100%
30.50
%
100%
Zoteforms
Accounting – Analysis of Zotefoams
15
(d) Gearing (Leverage)
Ratio Definition in words 2012 2011
Workings Results Workings Result
s
Debt/ equity ratio (17837/35690
) 100%
50.00% (16263/3525
2) 100%
46.13
%
100%
Interest cover net profit/ interest payable 4728/38 124.4 times 4554/52 87.57
times
Zoteforms
(b) Analysis of management
performance
Ratio Definition in
words
2012 2011
Workings Result Workings Results
Return on shareholders’
equity
Profit after
tax for equity
holder x
100%
100%
13.20% 4554/3525
2 100%
12.90%
Share
capital and
reserves
Return on capital
employed
4728/53527 8.80% 4554/
51515
100%
8.80%
(continuing only)
Operating profit on sales
(continuing only)
Op profit
before
interest and
tax 100%
5926/47188
100%
12.60% 5465/4420
8 100%
12.36%
Accounting – Analysis of Zotefoams
16
Sales
(revenue)
Gross profit percentage
Gross profit
100
30% 12584/442
08 100%
28.47%
(continuing only)
Sales
(revenue)
Total assets usage Sales
(revenue)
47188/53527 0.88 44208 0.86
(continuing only) Total assets 51515
Non-current(Fixed)
assets usage*
Sales
(revenue)
47188 1.5 times 44208 1.4 times
(continuing only) Property,
plant and
equipment
31577 31652
Zoteforms
Cash flow ratios
2012 2011
Operating Cash
Flows Ratio
Cash flows from
operations/current
liabilities
708
2
6288/708
2
88.80
%
6084/9334 65.20
%
Cash flow margin
ratio
Cash flow from
operating cash/Net
sales
6288/471
88
13.30
%
6084/44208 13.70
%
Cash flow fom
operations/ Av
total liabilities
6288/170
50
40% 6084/17050 40%
Current Ratio Current assets/
current liabilities
21950/70
82
3.1 19863/9334 2.1
Quick ratio Current Assets –
Inventory/current
liabilities
21950-
746/7082
=3
19863-
1778/9334=1
.9
Accounting – Analysis of Zotefoams
17
Appendices
Consolidated income statement Craigielaw
Year 7 Year 6
Year ended 31 December Note £m £m
Continuing operations
Revenue 1,2 2,081.50 2,080.30
Cost of sales 3 -1,456.70 –
1,451.20
Gross profit 624.8 629.1
Net operating expenses 3 -458.8 -479.6
Share of (losses)/profits of associated undertakings -0.3 0.1
Restructuring costs 4 – 1.4
Operating profit 165.7 151
Finance costs net of investment income 6 -32 -34.5
Profit on ordinary activities before taxation 5 133.7 116.5
Taxation 7 -38 -34.4
Profit for the period from continuing operations 95.7 82.1
Discontinued operations
(Loss)/profit from discontinued operations -0.1 14.4
Profit for the period 95.6 96.5
Attributable to:
Equity holders of the parent 84.1 81.4
Non-controlling interest 11.5 15.1
95.6 96.5
Earnings per ordinary share 10 20.0p 19.4p
Consolidated Statement of comprehensive income
Year
7
Year 6
£m £m
Profit for the year 84.1 81.4
Other comprehensive income:
Accounting – Analysis of Zotefoams
18
Unrealised loss on revaluation of properties – -2.8
Exchange movements -40.2 19
Total comprehensive income for the year 43.9 97.6
Consolidated Statement of comprehensive income
Year
7
Year 6
£m £m
Profit for the year 84.1 81.4
Other comprehensive income:
Unrealised loss on revaluation of properties – -2.8
Exchange movements -40.2 19
Total comprehensive income for the year 43.9 97.6
Consolidated statement of financial position
GROUP
Year 7 Year 6
31-Dec Note £m £m
Non-current assets
Property, plant and equipment 12 869.5 813.8
Receivables (debtors) due after more than one year 16 86.9 78.8
Investments 13 7.5 6
Total non-current assets 963.9 898.6
Current assets
Inventories (stocks) 15 258.7 287.7
Amounts receivable (debtors) 16 378 417.7
Twelve-month deposits 17 34.5 28.7
Cash and cash equivalents 17 45.9 60.2
Total current assets 717.1 794.3
Total assets 1,681.00 1,692.90
Current liabilities
Amounts payable (creditors) 18 -472.6 -501
Loans and overdrafts 20 -173.7 -187.3
Total current liabilities -646.3 -688.3
Non-current liabilities
Loans 21 -227.2 -172.6
Other 19 -33.3 -36.3
Provisions for liabilities and charges 24 -30.1 -30.2
Total non-current liabilities -290.6 -239.1
Accounting – Analysis of Zotefoams
19
Total liabilities -936.9 -927.4
Net assets 744.1 765.5
Capital and reserves
Equity share capital 26 105.2 104.9
Share premium account 27 155 151.3
Revaluation reserve 27 11.3 15.4
Retained earnings 27 405.7 422.8
Equity holders’ funds 677.2 694.4
Non-controlling interests 66.9 71.1
Total ownership interest 744.1 765.5
Consolidated statement of cash flows
Year ended 31 December Note Year 7 Year 6
£m £m
Cash flows from operating activities 27
Cash generated from operations 246.4 213.1
Interest paid -38.2 -42.4
Interest element of finance lease payments -0.5 -0.3
Taxation paid -40.7 -30.3
Net cash generated from operating activities 167 140.1
Cash flows from investing activities
Gross purchase of property, plant and equipment -200.6 -175
Inception of finance leases 59.6 4.1
Purchase of property, plant and equipment -141 -170.9
Purchase of trade investments -0.2 -4.4
Sale of property, plant and equipment 7.3 14.1
Sale of trade investments 2.2 –
Purchase of businesses 14 -2.6 -31.5
Net overdraft acquired with businesses 14 – -1.4
Sale of businesses 14 11.6 97.6
Net overdraft of businesses sold or reclassified 14 0.5 2.9
Amounts received from non-controlling interests in
subsidiaries
0.2 3.1
Interest received 8 5.9
Dividends received from associated undertakings 0.1 –
Net cash used in investing activities -113.9 -84.6
Cash flows from financing activities
Issue of ordinary share capital 4 7.9
Accounting – Analysis of Zotefoams
20
New loans 24.7 36.8
Loans repaid -25.7 -16.8
Capital element of finance lease payment -0.7 -0.6
Equity dividends paid to group shareholders -65.1 -63.1
Dividends paid to non-controlling interests -11.4 -1
Net cash used in financing activities -74.2 -36.8
(Decrease)/increase in cash and cash equivalents in
the year
-21.1 18.7
Reconciliation of net cash flow to movement in net debt
(Decrease)/increase in cash and cash equivalents in the
year
-21.1 18.7
Decrease/(increase) in debt 1.7 -19.4
Change in net debt resulting from cash flows -19.4 -0.7
Loans and finance leases acquired with businesses – -2.6
Loans and finance leases of businesses sold or
reclassified
5 2.1
New finance leases including accrued interest -60.8 -4.1
Translation difference 26 -17.6
Movement in net debt in the year -49.2 -22.9
Opening net debt -271 -248.1
Closing net debt 23 -320.2 -271
Zoteforms
Financial Statements
Consolidated Income Statement
for the year ended 31 December 2012
2012 2011
£000
Revenue 47,188 44,208
Cost of sales -33,521 -31,624
Gross profit 13,667 12,584
Distribution costs -3,308 -3,114
Administrative expenses ) -4,329 -3,880
Operating profit 6,030 5,590
Financial income 1,029 1,135
Finance costs -1,135 -1,260
Profit before tax 5,926 5,465
Taxation 6 -1,198 -911
Profit for the year 4,728 4,554
Attributable to:
Equity holders of the Parent 4,728 4,497
Non-controlling interest – 57 _ _
Accounting – Analysis of Zotefoams
21
4,728 4,554
Earnings per share Basic (p) 12.1 11.8
Diluted (p) 7 11.9 11.5
2012 2011
Financial Statements
Consolidated Statement of
Financial Position
as at 31 December 2012
Non-current assets
Property, plant and equipment 9 25869 25433
Intangible assets 1 5248 5729
Deferred tax assets 406 490
Total non-current assets 31,577 31,652 31577 31652
Current assets
Inventories 12 6,640 5,927 6640 5927
Trade and other receivables 13 11,612 10,533 11612 10533
Cash and cash equivalents 14 3,698 3,403 3698 3403
Total current assets 21,950 19,863 21950 19863
Total assets 53,527 51,515 53527 51515
Current liabilities
Interest-bearing loans and borrowings 16 (1,360) (660) -1360 -660
Tax payable (801) (787) -801 -787
Trade and other payables 15 (4,921) (7,887) -4921 -7887
Total current liabilities (7,082) (9,334) -7082 -9334
Non-current liabilities
Interest-bearing loans and borrowings 16 (2,962) (820) -2962 -820
Employee benefits 21 (7,172) (4,944) -7172 -4944
Deferred tax liabilities 17 (621) (1,165) -621 -1165
Total non-current liabilities (10,755) (6,929) -10755 -6929
Total liabilities (17,837) (16,263) -17837 -16263
Total net assets 35,690 35,252 35690 35252
Equity
Issued share capital 18 1,992 1,992 1992 1992
Own shares held (36) (58) 36 58
Share premium 16,090 16090 16090
Capital redemption reserve 15 15
Translation reserve 345 790 345 790
Hedging reserve (38) (51) 38 51
Retained earnings 17,322 16,474 17322 16474
Total equity attributable to the equity holders of the Parent 35,690 35,252
Non-controlling interest – –
Accounting – Analysis of Zotefoams
22
Total equity 35,690 35,252 35,690 35252
Zoteforms
Financial Statements
Consolidated Statement of Cash Flows
for the year ended 31 December 2012
£000 2012 2011
Cash flows from operating activities
Profit for the year 4,728 4,554 4728 4554
Adjustments for:
Depreciation, amortization and impairment 3,312 3,213 3312 3213
Financial income (1,029) (1,135) -1029 -1153
Finance costs 1,133 1,260 1133 1260
Equity-settled share-based payments 161 125 161 125
Taxation 1,198 911 1198 911
Operating profit before changes in working capital and
provisions
9,503 8,928
Increase in trade and other receivables (1,165) (1,040) -1165 -1040
Increase in inventories (746) (1,778) -746 -1778
(Decrease)/increase in trade and other payables (644) 634 -644 634
Employee benefit contributions (660) (660) -660 -660
Cash generated from operations 6,288 6,084 6288 6084
Interest paid (38) (52) 38 52
Tax paid (992) (1,053) -992 -1053
Net cash from operating activities 5,258 4,979 5258 4979
Interest received 2 5 2 5
Acquisition of MuCell (2,231) (2,179) -2231 -2179
Acquisition of intangible assets (63) (311) -63 -311
Acquisition of property, plant and equipment (3,683) (2,744) -3683 -2744
Net cash used in investing activities (5,975) (5,229) -5975 (52290
Proceeds from issue of share capital 46 2,376
Repurchase of own shares – (114)
Repayment of borrowings (660) (660) -660 -660
New loans taken out 3,500 – 3500
Distribution by subsidiary to non-controlling interest – (25) 25
Dividends paid (1,956) (1,835) -1956 -1835
Net cash generated/(used) in financing activities 930 (258) 930 -258
Net increase/(decrease) in cash and cash equivalents 213 (508) 213 -508
Cash and cash equivalents at 1 January 3,403 4,005 3403 4005
Effect of exchange rate fluctuations on cash held 82 (94) 82 -94
Cash and cash equivalents at 31 December 14 3,698 3,403 3698 3403
