1. Status Of Company
The Company is a limited liability company, incorporated under the Companies Acts, 1963 to 2009. Under the Postal and Telecommunications Services Act, 1983, the Company is entitled to omit the word 'Limited' from its name.
2. Turnover
| |
2009
€'000
|
2008
€'000
|
| The analysis of turnover is as follows: |
|
|
| Republic of Ireland |
|
|
Postage: Letters and parcels
Postage: Elections and referendum
Post offices: Agency, remittance and related services
Other services
Interest income |
565,640
15,494
163,950
19,783
12,890 |
624,820
4,708
156,407
18,547
21,622 |
| |
777,757 |
826,104 |
| United Kingdom and Other European Countries |
|
|
| Other services |
26,459 |
23,939 |
| |
804,216 |
850,043 |
Turnover above excludes the Group’s share of joint venture’s turnover of €15,081,000 (2008: €14,126,000). In the opinion of the directors, fuller compliance with the disclosure requirements of SSAP 25 ‘Segmental Reporting’ would be prejudicial to the Group’s interests..
3. Operating Costs
| |
2009
€'000
|
2008
€'000
|
| Staff and postmasters' costs |
588,975 |
599,010 |
| Other costs: |
|
|
| Distribution |
61,356 |
66,521 |
| Accommodation |
27,367 |
26,561 |
| Operational |
52,212 |
62,644 |
| Administration |
47,369 |
44,681 |
| Depreciation and amortisation of goodwill |
21,196 |
19,391 |
| |
798,475 |
818,808 |
| |
|
|
4. (Loss)/Profit on ordinary activities before taxation
| |
2009
€'000
|
2008
€'000
|
| The (loss)/profit on ordinary activities before taxation is stated after charging: |
|
|
Directors' emoluments
Fees
Other emoluments
Pension contributions |
268
407
77 |
287
400
75 |
Expenses paid to Directors:
Travel
Subsistence
Other |
21
6
1 |
14
7
1 |
| Auditors' remuneration - audit |
260 |
270 |
| Depreciation |
20,235 |
18,573 |
| Amortisation of goodwill |
961 |
818 |
Operating lease rentals:
Rental of buildings
Other - equipment and motor vehicles |
8,532
13,912 |
6,707
11,674 |
and after crediting:
Capital grants amortised
Profit on sale of fixed assets |
102
307 |
102
310 |
The amounts shown above as directors’ emoluments include only the amounts paid to the directors in the execution of their duties as directors and the salary of the Chief Executive who is also a director. Other than this, they do not include the salaries of the employee
and postmaster directors.
In accordance with the Government Guidelines on Remuneration and Other Conditions of Chief Executives, the Company operates a performance related pay scheme which provides for a maximum possible annual award of 35% of basic pay. Under this scheme, up to 25% is applied to annual objectives (the 25% short term scheme) and up to 10% is applied to multi-annual (three year) objectives (the 10% long term scheme). The Chief Executive has voluntarily waived his entitlement under the 25% short term scheme in the current year and in the previous year. Amounts earned under the 10% long term scheme are not finalised and do not become payable until the end of the three year term. However, it is estimated that an amount of €97,000 has been earned by the Chief Executive under the 10% long term scheme since the date of his appointment, 14 August, 2006, up to 31 December, 2009.
The remuneration package of Mr Donal Connell, Chief Executive Officer, which is included in the amounts shown above as directors’ emoluments, was as follows :
| |
2009
€'000
|
2008
€'000
|
Basic pay
Non-pensionable performance related pay |
386
- |
379
- |
| Total Pay |
386 |
379 |
| |
|
|
Taxable benefits, including use of a company car
Director's fee
Pension contributions |
21
16
77 |
21
18
75 |
| |
500 |
493 |
| |
2009
€'000
|
2008
€'000
|
| The fees paid to each director were as follows : |
|
|
| John Fitzgerald (Chairman) |
33 |
29 |
| Patrick Compton |
16 |
18 |
| Jerry Condon |
16 |
18 |
| Donal Connell |
16 |
18 |
| Anne Connolly |
16 |
18 |
| Paddy Costello |
16 |
3 |
| Patrick Davoren |
16 |
18 |
| Louise English |
16 |
18 |
| Ciara Hurley |
16 |
18 |
| James Hyland |
27 |
28 |
| Brian McConnell |
16 |
18 |
| Gerry O’Toole |
16 |
3 |
| John Quinlivan |
16 |
14 |
| Alan Sloane |
16 |
18 |
| Catherine Woods |
16 |
15 |
| Thomas Devlin |
- |
14 |
| Terry Kelleher |
- |
14 |
| Margaret McGinley (former Chairperson) |
- |
4 |
| Peter Wyer |
- |
1 |
| Total |
268 |
267 |
| |
|
|
5. (Loss)/Tax on Profit on Ordinary Activities
| |
2009
€'000 |
2008
€'000 |
| Current tax |
|
|
| Ireland - Capital gains tax |
46 |
31 |
| Ireland - Corporation tax |
2,252 |
5,925 |
| Ireland - adjustment with respect of prior years |
206 |
(69) |
| UK - Corporation tax |
437 |
788 |
| Share of joint venture tax |
- |
- |
| |
2,941 |
6,675 |
The current tax charge is lower than the standard rate of corporation tax in Ireland.
The differences are explained below:
| |
2009
€'000 |
2008
€'000 |
| (Loss)/Profit on ordinary activities before tax |
(25,569) |
39,890 |
Current tax of 12.5% (2008: 12.5%) |
(3,196) |
4,986 |
| Effects of: |
|
|
| Expenses not deductible |
782 |
1,068 |
| Depreciation in excess of capital allowances |
785 |
988 |
| Share of joint venture losses not deductible |
1,344 |
1,211 |
| Income taxed at higher rates |
1,782 |
3,214 |
| Utilisation of tax losses |
- |
(1,750) |
| Short term timing differences |
1,238 |
(2,973) |
| Prior year underprovision/(overprovision) |
206 |
(69) |
| Current tax charge |
2,941 |
6,675 |
Given the uncertainty over the existence of future taxable profits, a potential deferred tax asset of €55,060,000 (2008: €76,372,500) has not been recognised in the consolidated balance sheet at 31 December, 2009. This deferred tax asset not recognised comprises a deferred tax asset in relation to the net pension deficit recognised of €50,407,000 (2008: €72,937,500), timing differences on business restructuring, €2,381,000 (2008: €2,381,000), tax losses forward not utilised, €6,353,000 (2008: €5,529,000), offset by other timing differences of 4,081,000 (2008: €4,475,000).
6. Profit for the Financial Year
| |
2009
€'000 |
2008
€'000 |
| (Loss)/Profit after tax in the holding company |
(21,481) |
40,023 |
| Profit after tax in subsidiary undertakings |
3,721 |
2,877 |
| Share of result of joint venture |
(10,750) |
(9,685) |
| Minority interest |
(555) |
- |
| (Loss)/preaofit for the financial year |
(29,065) |
33,215 |
A separate profit and loss account for An Post has not been prepared because the conditions laid down in Section 148(8) of the Companies Act, 1963 have been satisfied.
7. Staff Numbers and Costs
| |
2009
€'000 |
2008
€'000 |
| The average Full Time Equivalent (FTE) number of employees working in the Group during the year was: |
|
|
Operations (mails and retail)
Corporate |
9,785
713 |
9,960
711 |
Total Company employees (FTE)
Subsidiaries* |
10,498
356 |
10,671
299 |
| Total Group employees (FTE) |
10,854 |
10,970 |
| The average number of employees working in the Group during the year, including executive directors, was: |
|
|
Operations (mails and retail)
Corporate |
8,983
747 |
8,961
717 |
Total Company employees
Subsidiaries |
9,730
356 |
9,678
310 |
| Total Group employees |
10,086 |
9,988 |
| |
|
|
| Postmasters: Engaged as agents |
1,185 |
1,185 |
* Increase arises from inclusion of staff in subsidiaries acquired during the year.
| |
2009
€'000 |
2008
€'000 |
| The aggregate payroll costs were as follows: |
|
|
| Wages, salaries and postmasters' costs |
510,298 |
511,679 |
| Social welfare costs |
36,491 |
35,314 |
| Other pension costs (note 17) |
42,186 |
52,017 |
| |
588,975 |
599,010 |
8. Intangible Fixed Assets - Goodwill
| |
Total
€'000 |
| Group |
|
| Cost |
|
At 31 December 2008
Acquisitions (note 24) |
13,628
10,475 |
| At 31 December, 2009 |
24,103 |
Amortisation |
|
| At 31 December, 2008 |
10,764 |
| Charge for year |
961 |
| At 31 December, 2009 |
11,725 |
Net Book Value |
|
| At 31 December, 2009 |
12,378 |
| At 31 December, 2008 |
2,864 |
The directors have considered the carrying value of goodwill at 31 December 2009 and have concluded that no impairment arises.
9. Tangible Fixed Assets
| |
Freehold & long leasehold land & buildings
€'000 |
Interest in GPO
€'000 |
Motor
Vehicles
€'000 |
Computer & Other Equipment
€'000 |
Total
€'000 |
| Group |
|
|
|
|
|
| Cost |
|
|
|
|
|
| At 31 December, 2008 |
185,629 |
26,429 |
27,978 |
240,104 |
480,140 |
| Additions |
28,894 |
- |
2,479 |
20,041 |
51,414 |
| Subsidiary acquisitions |
37 |
- |
146 |
1,307 |
1,490 |
| Disposals |
(95) |
- |
(11,505) |
(20) |
(11,620) |
| At 31 December, 2009 |
214,465 |
26,429 |
19,098 |
261,432 |
521,424 |
Accumulated Depreciation |
|
|
|
|
|
| At 31 December, 2008 |
43,107 |
10,150 |
21,687 |
207,435 |
282,379 |
| Charged during year |
4,669 |
651 |
1,766 |
13,149 |
20,235 |
| Eliminated on disposals |
(20) |
- |
(11,390) |
(16) |
(11,426) |
| At 31 December, 2009 |
47,756 |
10,801 |
12,063 |
220,568 |
291,188 |
Net Book Value |
|
|
|
|
|
| At 31 December, 2009 |
166,709 |
15,628 |
7,035 |
40,864 |
230,236 |
| At 31 December, 2008 |
142,522 |
16,279 |
6,291 |
32,669 |
197,761 |
Company |
|
|
|
|
|
| Cost |
|
|
|
|
|
| At 31 December, 2008 |
187,992 |
26,429 |
27,915 |
233,857 |
476,193 |
| Additions |
28,861 |
- |
2,386 |
19,567 |
50,814 |
| Disposals |
(95) |
- |
(11,372) |
- |
(11,467) |
| At 31 December, 2009 |
216,758 |
26,429 |
18,929 |
253,424 |
515,540 |
Accumulated Depreciation |
|
|
|
|
|
| At 31 December, 2008 |
37,614 |
10,150 |
21,661 |
202,621 |
272,046 |
| Charged during year |
4,771 |
651 |
1,727 |
12,432 |
19,581 |
| Eliminated on disposals |
(20) |
- |
(11,331) |
- |
(11,351) |
| At 31 December, 2009 |
42,365 |
10,801 |
12,057 |
215,053 |
280,276 |
Net Book Value |
|
|
|
|
|
| At 31 December, 2009 |
174,393 |
15,628 |
6,872 |
38,371 |
235,264 |
| At 31 December, 2008 |
150,378 |
16,279 |
6,254 |
31,236 |
204,147 |
Group and Company
The depreciable element of freehold & long leasehold land & buildings (namely buildings) amounts to: Group €170,744,000 (2008: €154,971,000), Company €178,531,000 (2008: €161,921,000).
10. Financial Fixed Assets
| |
Group
2009
€'000 |
Group
2008
€'000 |
Company
2009
€'000 |
Company
2008
€'000 |
| Shares in subsidiary undertakings, at cost |
- |
- |
10,652 |
10,651 |
| Interest in joint venture and associated undertakings |
90 |
10,840 |
- |
33,110 |
| |
90 |
10,840 |
10,652 |
43,761 |
Shares in subsidiary undertakings, at cost, in the Group amount to €102 (2008 : €102)
The movements during the year were as follows : |
| Shares in subsidiary undertakings |
|
|
|
|
| At beginning of year |
- |
- |
10,651 |
10,651 |
| Additions |
- |
- |
1 |
- |
| At end of year |
- |
- |
10,652 |
10,651 |
| Additions relate to the purchase of a 53.6% shareholding in The Gift Voucher Shop (see note 24) |
Interest in joint venture and associated undertakings |
|
|
|
|
| At beginning of year |
10,840 |
25,380 |
33,110 |
19,109 |
| Additions |
- |
- |
- |
18,856 |
| Share of result of joint venture |
(10,750) |
(9,685) |
- |
- |
| Impairment |
- |
- |
(33,110) |
- |
| Capitalised costs expensed |
- |
(4,855) |
- |
(4,855) |
| At end of year |
90 |
10,840 |
- |
33,110 |
The shareholders in Postbank Ireland Limited, BGL BNP Paribas Fortis and An Post have decided not to continue the joint venture beyond the calendar year 2010. The Company accounts for An Post recognise this and have reduced the carrying value of the investment to €nil.
Additional disclosures in respect of Postbank Ireland Limited, which exceed certain thresholds under Financial Reporting Standard 9 Associates and Joint Ventures, are set out below. The 2009 disclosures have yet to be approved by the directors of Postbank Ireland Limited and are unaudited.
| |
|
|
| Fixed assets |
3,909 |
8,629 |
| Current assets |
249,625 |
183,328 |
| Share of gross assets (excluding goodwill) |
253,534 |
191,957 |
| Liabilities due within one year |
(253,444) |
(181,117) |
| Share of gross liabilities |
(253,444) |
(181,117) |
| Investment in joint venture |
90 |
10,840 |
Goodwill was created in Postbank Ireland Limited upon receipt of the businesses and assets transferred to it from An Post in 2007. In accordance with accounting principles, An Post has not recognised its share of the goodwill and intangible assets created in Postbank Ireland Limited.
11. Debtors
| |
Group
2009
€'000 |
Group
2008
'000 |
Company
2009
'000 |
Company
2008
€'000 |
| Amounts falling due within one year |
|
|
|
|
| Trade debtors |
41,514 |
41,926 |
30,481 |
36,543 |
| Amounts owed by subsidiary undertaking not consolidated |
1,040 |
979 |
1,040 |
785 |
| Amounts owed by other subsidiary undertakings |
- |
- |
2,437 |
588 |
| Amounts owed by associated undertaking (note 27) |
799 |
895 |
799 |
895 |
| Amounts owed by joint venture (note 27) |
4,278 |
403 |
4,085 |
- |
| Other debtors |
977 |
304 |
608 |
295 |
| Prepayments and accrued income |
11,599 |
6,220 |
4,944 |
5,391 |
Amounts falling due after more than one year |
60,207 |
50,727 |
44,394 |
44,497 |
| Amounts owed by subsidiary undertakings |
- |
- |
15,016 |
5,465 |
| |
60,207 |
50,727 |
59,410 |
49,962 |
12. Cash at Bank and In Hand
| |
Group
2009
€'000 |
Group
2008
€'000 |
Company
2009
€'000 |
Company
2008
€'000 |
| Cash at bank |
30,863 |
14,157 |
994 |
5,727 |
| Cash in hand |
258,827 |
254,753 |
258,827 |
254,753 |
|
289,690 |
268,910 |
259,821 |
260,480 |
Term deposits |
289,102 |
392,139 |
289,102 |
392,139 |
| Less: Amounts held in trust |
(288,678) |
(310,586) |
(288,678) |
(310,586) |
| |
290,114 |
350,463 |
260,245 |
342,033 |
13. Creditors: Amounts falling due within one year
| |
Group
2009
€'000 |
Group
2008
€'000 |
Company
2009
€'000 |
Company
2008
€'000 |
| Trade creditors |
35,115 |
18,853 |
10,373 |
15,418 |
| Amounts owed to subsidiary undertakings |
- |
- |
47,217 |
48,138 |
| Amounts owed to joint venture (note 27) |
- |
1,754 |
- |
1,754 |
| Other creditors |
16,511 |
4,045 |
7,640 |
3,402 |
| Taxation and social welfare (note 14) |
16,303 |
15,208 |
15,096 |
14,202 |
| Accruals |
97,421 |
105,130 |
91,287 |
102,883 |
| Deferred income - capital grants (note 15) |
102 |
102 |
102 |
102 |
| Bank overdraft |
2,490 |
- |
- |
- |
| Deferred postage income |
15,956 |
20,100 |
15,956 |
20,100 |
| |
183,898 |
165,192 |
187,671 |
205,999 |
14. Taxation and Social Welfare
| |
Group
2009
€'000 |
Group
2008
€'000 |
Company
2009
€'000 |
Company
2008
€'000 |
| Corporation tax |
(193) |
1,160 |
(419) |
508 |
| Income tax deducted under PAYE |
7,358 |
7,353 |
7,099 |
7,210 |
| Pay related social insurance |
6,675 |
5,205 |
6,459 |
5,146 |
| Value added tax |
1,911 |
780 |
1,365 |
554 |
| Professional services withholding tax |
552 |
710 |
592 |
784 |
| |
16,303 |
15,208 |
15,096 |
14,202 |
15. Creditors: Amounts falling due after more than one year
| |
Group
2009
€'000 |
Group
2008
€'000 |
Company
2009
€'000 |
Company
2008
€'000 |
| Deferred income - capital grants |
3,665 |
3,767 |
3,665 |
3,767 |
| The movements on grants were as follows: |
|
|
|
|
| At beginning of year |
3,869 |
3,971 |
3,869 |
2,912 |
| Transferred from subsidiary |
- |
- |
- |
1,048 |
| Amortised to profit and loss account |
(102) |
(102) |
(102) |
(91) |
| At end of year |
3,767 |
3,869 |
3,767 |
3,869 |
| Transferred to creditors: amounts falling due within one year |
(102) |
(102) |
(102) |
(102) |
| |
3,665 |
3,767 |
3,665 |
3,767 |
16. Provisions for Liabilities
| |
2009
€'000 |
2008
€'000 |
| Group and Company |
|
|
| Provisions for business restructuring |
49,885 |
59,938 |
The movements during the year were as follows: |
|
|
| At beginning of year |
59,938 |
69,261 |
| Utilised during the year |
(10,053) |
(9,323) |
| At end of year |
49,885 |
59,938 |
The provision for business restructuring at 31 December, 2009 includes €30,839,000 (2008: €40,892,000) in relation to business restructuring redundancy costs, and €19,046,000 (2008: €19,046,000) in relation to the introduction of an Employee Share Ownership Plan (ESOP).
17. Pensions and Similar Obligations
Group and Company
The pension entitlements of employees arise under a number of defined benefit and defined contribution pension schemes, the assets of which are vested in independent trustees appointed by the Company for the sole benefit of employees and their dependents. Annual contributions are based on the advice of a professionally qualified actuary.
The amounts charged during the year to operating costs were as follows:
| |
2009
€'000 |
2008
€'000 |
| Defined benefit schemes - current service cost |
40,500 |
50,400 |
| Exgratia schemes - current service cost |
1,000 |
1,000 |
| Defined contribution scheme |
686 |
617 |
| Recognised in the profit and loss account |
42,186 |
52,017 |
Past service costs of €5,378,000 (2008: €3,638,000) arose during the year. These were discharged through the utilisation of the restructuring provision (note 16) and had no impact on the profit and loss account for the year ended 31 December, 2009 or 2008. Contributions payable to pension schemes and included in creditors at 31 December, 2009 amounted to €3,304,000 (2008: €43,000) which were paid in January 2010.
The pension costs of the defined benefit schemes are assessed in accordance with the advice of an independent professionally qualified actuary. The most recent actuarial valuations were carried out at 1 January, 2008 using the attained age method and at that date were sufficient to cover 100% of the accrued liabilities. The principal actuarial assumption was that, over the long term, the annual rate of return on investments would be 2.0% higher than the annual increase in pensionable remuneration. The actuarial valuation of 1 January, 2008 recommended a contribution rate of 14.4% of pensionable remuneration. The actuarial valuations are not available for public inspection but the results of the valuations have been advised to the members of the schemes.
The valuations of the pension schemes used for the purpose of FRS 17 disclosures have been based on the most recent actuarial valuations as identified above and updated by the independent actuaries to 31 December, 2009. Scheme assets are stated at their market value at the balance sheet date..
The financial assumptions used to calculate the retirement benefit liabilities under FRS 17 were as follows:
| Valuation method |
2009
Projected Unit |
2008
Projected Unit |
2007
Projected Unit |
| Discount rate |
5.75% |
5.75% |
5.50% |
| Inflation rate |
2.00% |
2.00% |
2.00% |
| Increase to pensions in payment |
3.25% |
3.25% |
3.75% |
| Pensionable salary increases |
3.25% |
3.25% |
3.75% |
| The long term expected rates of return on the assets of the pension scheme were: |
2009 |
2008 |
2007 |
| Equities |
9.00% |
9.00% |
7.75% |
| Bonds |
4.00% |
3.80% |
4.50% |
| Other |
6.00% |
6.85% |
5.15% |
The assumptions relating to longevity underlying the pension liabilities at the balance sheet date are based on standard actuarial mortality tables and include an allowance for future improvements in longevity. The assumptions are equivalent to expecting a 65-year old to live for a number of years as follows:
| Life expectancy at 65 |
Male |
Female |
| Current Pensioners - aged 65 |
84.0 |
87.0 |
| Future Pensioners - aged 40 |
85.5 |
88.5 |
The market value of the assets of the defined benefit schemes at 31 December, 2009, 2008 and 2007 were:
| |
2009
€'000 |
2008
€'000 |
2007
€'000 |
| Equities |
916,100 |
723,800 |
1,362,000 |
| Bonds |
625,100 |
612,400 |
529,000 |
| Other |
112,400 |
111,500 |
200,000 |
| Fair value of pension schemes' assets |
1,653,600 |
1,447,700 |
2,091,000 |
Present value of funded defined benefit obligations |
(2,045,000) |
(2,017,900) |
(2,193,100) |
| Present value of unfunded defined benefit obligations |
(11,852) |
(12,100) |
(12,200) |
| Present value of defined benefit obligations |
(2,056,852) |
(2,030,000) |
(2,205,300) |
| Pension liability |
(403,252) |
(582,300) |
(114,300) |
Movement in fair value of pension schemes' assets |
| Fair value of pension schemes' assets at beginning of year |
1,447,700 |
2,091,000 |
|
| Expected return on plan assets |
95,500 |
139,200 |
|
| Actuarial gain/(loss) |
125,700 |
(768,161) |
|
| Employer contributions |
58,696 |
55,263 |
|
| Members' contributions |
4,400 |
3,900 |
|
| Benefits paid |
(78,396) |
(73,502) |
|
| Fair value of pension schemes' assets at end of year |
1,653,600 |
1,447,700 |
|
Movement in present value of defined benefit obligations |
| Defined benefit obligations at beginning of year |
(2,030,000) |
(2,205,300) |
|
| Current service cost |
(41,500) |
(51,400) |
|
| Past service cost |
(5,378) |
(3,638) |
|
| Interest cost |
(116,060) |
(120,860) |
|
| Members contributions |
(4,400) |
(3,900) |
|
| Benefits paid |
78,396 |
73,502 |
|
| Actuarial gain |
62,090 |
281,596 |
|
| Deficit benefit obligations at end of year |
(2,056,852) |
(2,030,000) |
|
Other finance (expense)/income
| |
2009
€'000 |
2008
€'000 |
| Interest on schemes' liabilities |
(116,060) |
(120,860) |
| Expected return on schemes' assets |
95,500 |
139,200 |
| |
(20,560) |
18,340 |
| The expected return on schemes’ assets is calculated based on the value of the schemes’ assets at the beginning of the financial year. |
Amounts recognised in statement of total recognised gains and losses |
|
|
| The actuarial gains and losses are analysed as follows: |
|
|
Difference between expected and actual return on assets |
125,700 |
(768,161) |
| Experience gains and losses on schemes' liabilities |
62,090 |
(8,400) |
| Changes in assumptions underlying the present value of schemes' liabilities |
- |
289,996 |
| Actuarial (loss)/gain recognised |
187,790 |
(486,565) |
The actual return on schemes’ assets in 2009 was a gain of €221m (2008: loss of €629m). The cumulative actuarial gains and losses recognised in the statement of total recognised gains and losses at 31 December, 2009 is a loss of €229m.
Employer contributions in 2010 are expected to be €54m.
History of actuarial gains and losses
| |
2009 |
2008 |
2007 |
2006 |
2005 |
| Difference between expected and actual return on assets |
125,700 |
(768,161) |
(188,294) |
66,000 |
257,000 |
| Expressed as a percentage of schemes' assets |
8% |
(53%) |
(9%) |
3% |
13% |
| Experience gains and losses on schemes' liabilities |
62,090 |
(8,400) |
- |
(43,000) |
(2,000) |
| Expressed as a percentage of schemes' liabilities |
3% |
- |
- |
(2%) |
- |
| Total actual gains and losses |
187,790 |
(486,565) |
63,141 |
118,179 |
(1,786) |
| Expressed as a percentage of schemes' liabilities |
9% |
(24%) |
3% |
5% |
- |
18. Share Capital - Group and Company
| |
2009
€'000 |
2008
€'000 |
| Authorised: |
|
|
| 80,000,000 Ordinary Shares of €1.25 each |
100,000 |
100,000 |
| Allotted, called up and fully paid: |
|
|
| 54,590,946 Ordinary Shares of €1.25 each |
68,239 |
68,239 |
On 14 January, 2003, pursuant to Section 26 of the Economic and Monetary Union Act, 1998, the Company’s shares were renomalised from €1.269738 to €1.25 per share and an amount of €877,000 was transferred to a capital conversion reserve fund.
19. Profit And Loss Account
| |
Group
2009
€'000 |
Group
2008
€'000 |
Company
2009
€'000 |
Company
2008
€'000 |
| At beginning of year |
(267,658) |
185,692 |
(281,217) |
165,325 |
| (Loss)/Profit for the financial year |
(29,065) |
33,215 |
(21,481) |
40,023 |
| Impairment of financial asset |
- |
- |
(33,110) |
- |
| Other recognised gains/(losses) |
187,790 |
(486,565) |
187,790 |
(486,565) |
| At end of year |
(108,933) |
(267,658) |
(148,018) |
(281,217) |
20. Reconciliation of Shareholders' (Deficit)/Funds
| |
Group
2009
€'000 |
Group
2008
€'000 |
Company
2009
€'000 |
Company
2008
€'000 |
| At beginning of year |
(198,542) |
254,808 |
(212,101) |
234,441 |
| (Loss)/profit for the financial year |
(29,065) |
33,215 |
(21,481) |
40,023 |
| Impairment of financial asset |
- |
- |
(33,110) |
- |
| Other recognised gains/(losses) |
187,790 |
(486,565) |
187,790 |
(486,565) |
| At end of year |
(39,817) |
(198,542) |
(78,902) |
(212,101) |
21. Minority Interest
| |
Total
€'000 |
| At 31 December, 2008 |
- |
| Arising from acquisitions (note 24) |
8,413 |
| Minority interest share of profit |
(555) |
| At 31 December, 2009 |
7,858 |
22. Gross Cash Flows
| |
2009
€'000 |
2008
€'000 |
| Reconciliation of operating profit to net cash inflow from operating activities |
|
|
| Operating profit |
5,741 |
31,235 |
| Depreciation, amortisation |
21,196 |
24,246 |
| Profit on sale of tangible fixed assets |
(307) |
(310) |
| Payments in relation to provision for business restructuring |
(10,053) |
(9,323) |
| cash pension cost |
(11,818) |
(225) |
| Capital grants amortised |
(102) |
(102) |
| (Increase)/decrease in operating debtors |
(2,824) |
5,549 |
| (Decrease)/increase in operating creditors |
(16,107) |
(6,628) |
| Net cash (outflow)/inflow from operating activities |
(14,274) |
44,442 |
Taxation |
|
|
| Tax Paid |
(4,294) |
(6,845) |
Capital expenditure and financial investment |
|
|
| Purchase of tangible fixed assets |
(46,801) |
(40,773) |
| Disposal of tangible fixed assets |
501 |
432 |
| |
(46,300) |
(40,341) |
Acquisitions and disposals |
|
|
| Acquisition of subsidiary undertakings (note 24) |
(2,287) |
- |
| Cash in subsidiaries acquired |
4,316 |
- |
| |
2,029 |
- |
Management of liquid resources (note a) |
|
|
| Decrease/(increase) in term deposits |
103,037 |
9,897 |
Note a: Liquid resources comprise term deposits with a maturity notice period of more than one day.
23. Analysis of Net Funds
| |
At beginning of year
€'000 |
Cash flows
€'000 |
At end of year
€'000 |
| Cash at bank and in hand |
268,910 |
20,780 |
289,690 |
| Bank overdraft |
- |
(2,490) |
(2,490) |
| Amounts held in trust |
(310,586) |
21,908 |
(288,678) |
|
|
40,198 |
|
| Term deposits |
392,139 |
(103,037) |
289,102 |
| Total |
350,463 |
(62,839) |
287,624 |
24. Subsidiary and associated undertakings
| Name |
Nature of Business |
% Holding |
Registered Office |
| Subsidiary undertakings held directly by the Company |
An Post National Lottery
Company (note 27) |
Operation of the
National Lottery |
80% |
General Post Office
O'Connell Street
Dublin 1 |
Arcade Property
Company Limited |
Property development
and Letting |
100% |
General Post Office
O'Connell Street
Dublin 1 |
Post Consult
International Limited |
Computer software
Services |
100% |
General Post Office
O'Connell Street
Dublin 1 |
Precision Marketing
Information Limited |
Provision of marketing data,
database services and
business directories |
100% |
General Post Office
O'Connell Street
Dublin 1 |
Prince's Street Property
Company Limited |
Dormant |
100% |
General Post Office
O'Connell Street
Dublin 1 |
| Printpost Limited |
High volume printing |
100% |
General Post Office
O'Connell Street
Dublin 1 |
| Post.Trust Limited |
Digital certification and
security services |
100% |
General Post Office
O'Connell Street
Dublin 1 |
| Transpost Limited |
Courier and distribution |
100% |
General Post Office
O'Connell Street
Dublin 1 |
Kompass Ireland Publishers
Limited |
Dormant |
100% |
General Post Office
O'Connell Street
Dublin 1 |
An Post Billpost Processing
Services Limited |
Bill payment processing |
100% |
General Post Office
O'Connell Street
Dublin 1 |
| An Post GeoDirectory Limited |
Database services |
100% |
General Post Office
O'Connell Street
Dublin 1 |
| An Post (NI) Limited |
Holding company |
100% |
Stokes House
College Square
East Belfast |
| GVS Gift Voucher Shop Limited |
Retail gift vouchers |
53.6% |
General Post Office,
O’Connell Street,
Dublin 1. |
| The Gift Voucher Shop Limited |
Retail gift vouchers |
53.6% |
The Merlin Centre,
Acrewood Way, St. Albans
Herts, U.K. |
Subsidiary undertakings held indirectly through a subsidiary undertaking |
| Air Business Limited |
Distribution |
100% |
4 The Merlin Centre
Acrewood Way
St. Albans
Herts U.K. |
| Jordan & Co International Limited |
Distribution |
100% |
4 The Merlin Centre
Acrewood Way
St. Albans
Herts U.K. |
Associated undertaking held directly by the Company |
| The Prize Bond Company Limited |
Administration of the Prize
Bond Scheme |
50% |
General Post Office
O'Connell Street
Dublin 1 |
Joint Venture |
| Postbank Ireland Limited |
Banking |
50% |
Block One
West Pier Business Campus
Dun Laoghaire
Co Dublin |
During the year, the Group acquired the entire share capital of Jordan & Co International Limited and a 53.6% shareholding in the Gift Voucher Shop Limited. The assets and liabilities acquired and the consideration paid were as follows:
| |
Jordan & Co
€'000 |
The Gift Voucher Shop
€'000 |
Total
€'000 |
| Tangible fixed assets (note 9) |
751 |
739 |
1,490 |
| Debtors |
752 |
5,904 |
6,656 |
| Cash |
912 |
3,404 |
4,316 |
| Creditors |
(886) |
(28,177) |
(29,063) |
| Minority Interest (note 21) |
- |
8,413 |
8,413 |
| Net assets/( liabilities) acquired |
1,529 |
(9,717) |
(8,188) |
| Goodwill arising on acquisition (note 8) |
757 |
9,718 |
10,475 |
| Consideration – satisfied by cash payment (note 22) |
2,286 |
1 |
2,287 |
The directors believe that there was no material difference between the book value of the assets and liabilities acquired and their fair values at the date of acquisition.
Goodwill arising on acquisitions is being written off over 10 years.
The results of the acquired entities have been included in the consolidated profit and loss account from the respective dates of acquisition and amounted to turnover of e6.1m, operating costs of e5.0m and operating profits of e1.1m. The purchase contract for the Gift Voucher shop provides for additional cash consideration in the event that specified earn out targets are achieved. No amounts have been accrued in this respect at 31 December, 2009.
Air Business Limited, Jordan & Co International Limited and Gift Voucher Shop (UK) Limited are incorporated in and operate in England & Wales. An Post (NI) Limited is incorporated in and operates in Northern Ireland. All other undertakings are incorporated in and operate in the Republic of Ireland.
An Post National Lottery Company carries on the business of operating the National Lottery under licence from the Minister for Finance in accordance with the provisions of the National Lottery Act, 1986. 20% of the issued share capital is held by the Minister for Finance.
The Prize Bond Company Limited carries on the business of administering the Prize Bond Scheme under contract from the National Treasury Management Agency.
The following subsidiaries will avail of the filing exemption available under Section 17 of the Companies (Amendment) Act, 1986, whereby they will annex the financial statements of An Post to their annual returns: Post Consult International Limited; Printpost Limited; Post.Trust Limited; Transpost Limited; Precision Marketing Information Limited; Arcade Property Company Limited; Prince’s Street Property Company Limited; An Post BillPost Processing Services Limited; An Post GeoDirectory Limited and Kompass Ireland Publishers Limited.
25. Lease Commitments
| |
Land &
Buildings
2009
€'000 |
Other
2009
€'000 |
Total
2009
€'000 |
Land &
Buildings
2008
€'000 |
Other
2008
€'000 |
Total
2008
€'000 |
| Annual commitments under non-cancellable operating leases were as follows: |
| Group |
|
| Expiring within one year |
981 |
4,788 |
5,769 |
903 |
1,542 |
2,445 |
| Expiring after one year and before five years |
3,575 |
7,767 |
11,342 |
1,110 |
9,801 |
10,911 |
| Expiring after five years |
4,495 |
- |
4,495 |
5,874 |
- |
5,874 |
| |
9,051 |
12,555 |
21,606 |
7,887 |
11,343 |
19,230 |
Company |
|
| Expiring within one year |
164 |
4,750 |
4,914 |
630 |
1,412 |
2,042 |
| Expiring after one year and before five years |
3,140 |
7,582 |
10,722 |
772 |
9,705 |
10,477 |
| Expiring after five years |
3,926 |
- |
3,926 |
5,305 |
- |
5,305 |
| |
7,230 |
12,332 |
19,562 |
6,707 |
11,117 |
17,824 |
Other lease commitments relate to equipment and motor vehicles. There were no material finance lease commitments either at 31 December, 2009 or 2008 or which were due to commence after that date.
26. Capital Commitments
| |
Group
2009
€'000 |
Group
2008
€'000 |
Company
2009
€'000 |
Company
2008
€'000 |
| Contracted for |
16,923 |
25,122 |
16,923 |
25,122 |
| Authorised but not contracted for |
46,223 |
14,416 |
46,223 |
14,416 |
| |
63,146 |
39,538 |
63,146 |
39,538 |
27. Related Party Disclosures And Controlling Party
Controlling party
The Group was controlled throughout the year by the Minister for Communications, Energy and Natural Resources who holds the entire issued share capital of An Post except for one ordinary share which is held by the Minister for Finance.
Transactions with related undertakings
An Post National Lottery Company
The Group provides An Post National Lottery Company, an undertaking not consolidated, with management and delivery services. Such services are carried out on an arm’s length basis or, where required, in accordance with the terms of the licence granted by the Minister for Finance to operate the National Lottery. The Company also provides agency services to An Post National Lottery Company whereby the Company makes sales and pays prizes on behalf of An Post National Lottery Company in accordance with the standard terms and conditions and remuneration structure common to all of An Post National Lottery Company’s agents. Group turnover for the year includes €6,346,000 (2008: €6,128,000) in respect of services provided to An Post National Lottery Company. These amounts are inclusive of a management fee of €2,993,000 (2008: €2,993,000) payable to the Company in accordance with the terms of the licence to operate the National Lottery.
The costs of staff working in An Post National Lottery Company are recharged from An Post at cost and amounted to €7,764,000 for the year ended 31 December, 2009 (2008: €7,442,000).
The amount owed by An Post National Lottery Company to the Company was €1,040,000 at 31 December, 2009 (2008: €979,000).
An Post has agreed to guarantee the performance by An Post National Lottery Company of its obligations under the licence for the holding of the National Lottery granted by the Minister for Finance. An Post has provided the guarantee, the maximum liability of which amounts to €10 million, for the duration of the licence to 31 December, 2011.
The Prize Bond Company Limited
Under the terms of a contract with The Prize Bond Company Limited, the Company carries out certain aspects of the administration of the Prize Bond Scheme. Fees earned by the Company in respect of such services amounted to €4,266,000 for the year ended 31 December, 2009 (2008: €3,104,000). The amount owed by The Prize Bond Company Limited to the Company was €799,000 at 31 December, 2009 (2008: €895,000).
Postbank Ireland Limited
The Company provides Postbank Ireland Limited (Postbank), with delivery services and agency services whereby the Company makes sales and accepts deposits and withdrawals on behalf of Postbank. The Company also earns commissions from Postbank on the sale of mobile phone top ups. Other group companies supply Postbank with computer related services. Such services are carried out on an arm’s length basis. Group turnover for the year includes €5,683,000 (2008 : €7,131,000) in respect of services provided to Postbank and commissions earned. The Company had for part of the year, seconded certain staff to Postbank and the related costs which amounted to €707,000 (2008 : €1,865,000) are recharged to Postbank. Postbank also provides certain management services to the Company, the value of which amounted to €617,000 (2008 : €507,000). The amounts owed by Postbank to the Group and Company in respect of these services at 31 December, 2009 were €4,278,000 (2008: €403,000) and €4,085,000 (2008: € nil) respectively. The amounts owed to Postbank by the Group and Company at 31 December, 2009 were €nil (2008: €1,754,000) and €nil (2008: €1,754,000) respectively.
Transactions with Government departments and other State bodies
The Group provides, in the ordinary course of business, postage, agency, remittance and courier services to various Government departments and other State bodies on an arm’s length basis.
28. Contingencies
Group and Company
There were no contingent liabilities or guarantees at 31 December, 2009 or 2008 in respect of which material losses are expected other than as disclosed elsewhere in the financial statements.
29. Board Approval
The financial statements were approved by the Board of Directors on 25 March, 2010.