2015 saw the adoption of International Financial Reporting Standards (IFRS) which resulted in certain accounting re-measurements. The most significant effect of these was to reduce the actuarial loss on defined benefit pension liabilities in the statement of Other Comprehensive Income while reducing the pension interest expense in the profit and loss in prior year comparative information, effectively a reclassification with no overall impact to shareholder equity.
The continued focus on our strategic objectives has delivered a successful year, with revenues of £182.0m (2014: £177.1m). Continued strong underlying profitability and focus on positive cash management have supported higher levels of investment in strategic opportunities as well as maintaining the high performance of our core business.
This focus has resulted in significant new business opportunities.
The continued focus on our strategic objectives has delivered a successful year, with revenues of £182.0m
INTERIM CHIEF FINANCIAL OFFICeR
Net interest payable was £2.4m compared to net interest payable in 2014 of £2.5m, primarily attributable to the interest charge on the pension scheme liabilities as well as fees for the Group’s banking facility.
After a tax charge of £0.8m (2014: £5.1m), which had no cash impact due to the utilisation of brought forward tax losses, profit after tax was £5.4m (2014: £8.9m). No dividends have been proposed or paid with all profits being retained to fund investment.
Capital expenditure was £35.7m (2014: £16.5m), focused on continuing to strengthen core infrastructure as well as supporting new strategic opportunities. This increase in capital expenditure in 2015 primarily relates to PayPort, Applications Refresh, Payment Data Insight and property.
Trade receivables increased to £6.1m (2014: £4.2m), principally due to the increased revenue achieved toward the end of the year.
The deficit for the Group’s Final Salary Pension Scheme, closed to new entrants and future accrual, reduced by £17.4m to £46.9m (2014: £64.3m). Deficit reduction contributions remain at £14.6m per annum. The discount rate applied to scheme liabilities increased by 0.3% over the year which had the effect of reducing the deficit. This was partially offset by an increase in the RPI inflation rate of 0.1%, which has the effect of increasing the deficit.
Net cash balances, as expected, decreased by £13.0m to £75.4m. This resulted from the increased spend in Zapp to £31.7m (development costs of £31.3m and capex of £0.4m), mitigated by the strong cash generation in the core business which, together with the committed lending facilities of £70m, provides the funding capacity to deliver key strategic objectives in the future.
Finally, as the company had distributable reserves, it exercised its right to redeem issued deferred shares for a consideration of £1, as per the articles of association, resulting in a reduction in deferred shares shown in equity by £9.3m and a corresponding increase in other reserves.