MS INTERNATIONAL : 2020 Final Results

Chairman's Statement

Results and Review

A year ago, in my Chairman's Statement, I stated that we were approaching 'very interesting times'. At that juncture, we were reasonably confident of making good progress throughout the coming year, although it later became evident that global, political and economic uncertainty was gathering momentum and our businesses would not be immune from its effects, as evidenced in our half year results.

What we could not foresee was the advent of the 'Covid-19' pandemic and the devastating effects that it would have on the whole global economy, let alone our diverse businesses. The imposed restrictions on movement in terms of personnel and goods seriously impacted both our national and widespread international trading activities.

Nevertheless, our commitment to research and development across our 'Defence' business continued unabated. During the period we expended some £2.00m (2019 - £0.96m) on expanding our portfolio of small/medium calibre naval and land based stabilised weapon systems.

I am however, bitterly disappointed to report a loss before taxation for the year ending 30th April 2020, amounting to £3.25m (2019 - profit £4.79m) and a loss per share of 15.1p (2019 - profit per share 23.1p) on revenue of £61.15m (2019 - £77.71m). Notwithstanding, the all-important balance sheet has remained strong with cash at a very healthy £16.30m (2019 - £22.89m) and no borrowings, excluding lease liabilities.

Outlook

Whilst prospects for the global economy are most uncertain and the current downturn could be prolonged, we remain keenly confident in the future success of our businesses. We believe that what we have been doing, and will continue to do, particularly in terms of developing innovative and creative new products while simultaneously upgrading existing ones, is the proven, right approach for the markets we serve that will deliver long term rewards. Furthermore, we will strive to expand our services beyond the current customer base into market sectors that have similar product requirements.

'Defence' - we will continue to invest in new product development, not only for naval applications but also suitable for wider land-based systems. Recent innovations have attracted considerable attention across international markets, and it is most pleasing to report that some very exciting opportunities are now being converted into much more serious sales prospects.

'Forgings' - our UK operations have been restructured to align with the changing requirements of the national and international markets we serve. We continue to invest in our highly successful United States based manufacturing operations and we are progressively gaining market share.

'Petrol Station Superstructures' - pent-up demand that resulted from the pandemic 'close-down' is starting to be unleashed as markets open up again for new construction and essential maintenance work on existing sites. Our UK based operations will directly benefit as will those we have in Poland, from where we design, supply, erect and maintain petrol station structures across many parts of eastern and northern Europe.

'Petrol Station Branding' - our UK and much larger European mainland operations should also achieve a similar strong recovery as international borders are reopened. The two signage and corporate branding businesses we acquired in the Netherlands last year both serve broader sectors than our traditional customer base. They will greatly assist the expansion of the division to include other signage markets such as 'Hospitality', - hotels and conference centres; 'Automotive' - motor car showrooms; 'Wayfinding' - relating to airports, holiday theme parks etc., thus adding to our strong petrol station market position. The enlarged division will be addressed as the MSI-Sign Group.

It is appropriate on this occasion to express my appreciation to all our employees, for their understanding and commitment to the business, during what has been a most challenging and disruptive year for everyone.

It is also proper to offer our thanks to HM Government and to those Governments, in countries where we have operating businesses located, for their 'Covid-19' support in what has been an unprecedented time.

We remain committed to moving the business forward again and with the unprecedented experience of the past three months almost behind us, we have the resilience, experience and dedication, along with a great team of people, to achieve our aim. Most importantly, we also enjoy significantly strong financial resources to support and develop opportunities as they arise.

At present the global outlook may be unclear, but with recent positive steps out of the 'lockdown', we are confident that we have the wherewithal not only to progressively recover but also to prosper and take advantage of many exciting opportunities.

All matters considered the Board recommends the payment of a prudent final dividend of 1.75p per share (2019 - 6.5p) making a total for the year of 3.5p (2019 - 8.25p). The final dividend is expected to be paid on 14th August 2020, to those shareholders on the register at the close of business on 17th July 2020.

Michael Bell

30th June 2020

Copies of this announcement are available from the Company's registered office at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster, DN4 8DH, England. The full Annual Report and Accounts, which will include the Notice of AGM, will be posted to shareholders shortly, will be available on the Company's website atwww.msiplc.comand will be delivered to the Registrar of Companies after it has been laid before the Company's members at the Annual General Meeting to be held on 10th August 2020 at MS INTERNATIONAL plc, Balby Carr Bank, Doncaster DN4 8DH.

Shareholders are advised to read the statement in the full Annual Report and Accounts in relation to the arrangements for the forthcoming Annual General Meeting because of the current restrictions in force relating to public meetings due to Covid 19.

MS INTERNATIONAL plc

Michael Bell

Tel: [phone]

Shore Capital (Nominated Adviser and Broker)

Patrick Castle

Tel: [phone]

Daniel Bush

Consolidated income statement

For the period ended 30th April, 2020

Continuing operations

Revenue

Cost of sales

2020 Total £'000 61,153 (48,275)

2019 Total £'000 77,708 (56,131)

Gross profit

12,878

21,577

Distribution costs Administrative expensesGroup operating (loss) / profit before exceptional items

(3,455)

(3,537)

(12,542)

(11,846)

(15,997)

(15,383)

(3,119)

6,194

Past service pension costs

-

(1,198)Group operating (loss) / profit

(3,119)

4,996

Interest received

Interest paid

Other finance costs - pensions

133 (103) (164) (134)

93 (116) (186) (209)

(Loss) / profit before taxation Taxation

(3,253)

762

4,787 (975)

(Loss) / profit for the period attributable to equity holders of the parent

(2,491)

3,812

(Loss) / earnings per share: basic and diluted

(15.1p)

Consolidated statement of comprehensive income

For the period ended 30th April, 2020

(Loss) / profit for the period attributable to equity holders of the parent

23.1p

(2,491)

2020 Total £'000

2019 Total £'000 3,812

Exchange differences on retranslation of foreign operations

(55)

(242)Net other comprehensive loss to be reclassified to profit or loss in subsequent periods

(55)

(242)Remeasurement (losses) / gains on defined benefit pension scheme Deferred taxation on remeasurement on defined benefit scheme Deferred taxation on revaluation surplus on land and buildings

(2,197)

545 (110)

403 (69)

-Net other comprehensive (loss) / income not being reclassified to profit or loss in subsequent periods

(1,762)

334

Total comprehensive (loss) / income for the period attributable to equity holders of the parent

(4,308)

3,904

Consolidated and company statement of changes in equity

For the period ended 30th April, 2020

(a) Group

At 28th April, 2018

Share capital

Capital redemption reserve

Other reserves

Revaluation reserveShare Currency Premium translation account reserveTreasury sharesRetained earningsTotal shareholders' funds

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000 £'000

1,840

901

2,815

6,055

1,629

521

(3,059)

22,698 33,400

IFRS 15 adjustment

Profit for the period

Other comprehensive (loss) / income

Total comprehensive (loss) / income

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- -

- - - - -

(144) (144)

3,812 3,812

(242)

334 92

(242)

4,146 3,904

Dividends paid

-

(1,362)

(1,362)

At 27th April, 2019

1,840

901

2,815

6,055

1,629

279

(3,059)

25,338

35,798

Loss for the period

Other comprehensive loss

Total comprehensive loss

- - - -- - - -- - - -- - - -- - - -

-

- - - -

(2,491) (2,491)

(55)

(1,762) (1,817)

(55)

(4,253) (4,308)

Dividends paid

-

(1,362) (1,362)At 30th April, 2020

(b) Company

At 28th April, 2018

1,840

901

2,815

6,055

1,629

224

(3,059)

19,723 30,128

1,840

901

1,565

6,055

1,629

-

(3,059)

18,627 27,558

IFRS 15 adjustment

Reserve transfer

Loss for the period

Other comprehensive income

Total comprehensive income

- - - - - -

-

-

-

- -

- -

- -(144) (144)

• - 6,055

(6,055)

-

-- - - -- - - -- - - -- - - -- - - -- - - -

(233) (233)

334 334

101 101

Dividends paid

(1,362) (1,362)

At 27th April, 2019

1,840

901

7,620

-

1,629

• - (3,059)

17,222 26,153

Profit for the period

Other comprehensive loss

Total comprehensive loss Dividends paid

- - - -- - - -- - - -

- - - -- - - -- - - -- - - -

1,366 1,366

(1,608)

(1,608)

(242)

(242)

(1,362)

(1,362)At 30th April, 2020

1,840

901

7,620

-

1,629

• - (3,059)

15,618

24,549

Consolidated and company statements of financial position

At 30th April, 2020

2020	2019
£'000	£'000
ASSETS
Non-current assets
Property, plant and equipment	20,111	20,426
Right-of-use assets	1,214	-
Intangible assets	4,140	4,483
Investments in subsidiaries	-	-
Deferred income tax asset	1,875	1,156
27,340	26,065
Current assets
Inventories	15,857	12,624
Trade and other receivables	4,589	7,044
Income tax receivable	719	44
Prepayments	1,775	1,774
Cash and cash equivalents	16,125	22,886
39,065	44,372
TOTAL ASSETS	66,405	70,437
EQUITY AND LIABILITIES
Equity
Share capital	1,840	1,840
Capital redemption reserve	901	901
Other reserves	2,815	2,815
Revaluation reserve	6,055	6,055
Share premium account	1,629	1,629
Currency translation reserve	224	279
Treasury shares	(3,059)	(3,059)
(Loss) / profit for the period	(2,491)	3,812
Retained earnings brought forward	22,214	21,526
TOTAL EQUITY SHAREHOLDERS' FUNDS	30,128	35,798
Non-current liabilities
Defined benefit pension liability	8,563	6,802
Deferred income tax liability	1,641	1,567
Lease liabilities	893	-
11,097	8,369

Group	Company
2020	2019
£'000	£'000
1,121	1,265
5,943	-
-	-
18,036	15,036
1,875	1,241
26,975	17,542
1,543	1,462
15,433	22,489
139	21
296	299
-	-
17,411	24,271
44,386	41,813
1,840	1,840
901	901
7,620	7,620
-	-
1,629	1,629
-	-
(3,059)	(3,059)
(979)	(233)
16,597	17,455
24,549	26,153
8,563	6,802
-	-
5,609	-
14,172	6,802