Interim Results

RNS Number : 7587J

Alliance Pharma PLC

14 September 2016

 

For immediate release

14 September 2016

 

ALLIANCE PHARMA PLC

("Alliance" or the "Company")

Interim Results for the six months ended 30 June 2016

Alliance Pharma plc (AIM: APH), the specialty pharmaceutical company, is pleased to announce its interim results for the six months ended 30 June 2016.

Highlights:

·      Half year revenue up 104% at £46.4m (H1 2015: £22.8m)

 o Ex-Sinclair products have made an immediate contribution to our results, in line with our expectations and enabling revenues to more than double

o Underlying revenue growth of 6% in the original Alliance portfolio

·      Our largest-selling brand is now the scar reduction product, Kelo-cote™, which achieved H1 sales of £4.1m from a widely spread international base

·      Hydromol™, our emollient range, maintained its double digit growth rate, with H1 sales of £3.5m

·      MacuShield™, our nutritional supplement product for age related macular degeneration (AMD), delivered H1 sales of £2.0m (£1.4m in the five months after we acquired it in February 2015)

·      Half year EBITDA up 109% at £13.2m (H1 2015: £6.3m)

·      Half year PBT up 113% at £11.7m (H1 2015: £5.5m)

·      Basic earnings per share 2.04p (H1 2015: 1.65p)

·      Interim dividend up 10% to 0.403p (H1 2015: 0.366p)

·      Net bank debt £79.0m (31 December 2015: £71.5m)

o  Driven jointly by increases in working capital and Sterling's weakness

Commenting on the results, Andrew Smith, Alliance Pharma's Chairman, said:

"Alliance Pharma is a transformed business with sales and profits in the first half of 2016 having doubled from those of 2015.  We are already seeing opportunities to exploit our expanded international capabilities.  We were delighted to announce yesterday the signing of an EU licensing and distribution agreement for Diclectin with Duchesnay Inc., which provides the opportunity to launch this product in a further nine EU territories.  This agreement highlights the potential of our strengthened European base."  

For further information:

Alliance Pharma plc	+ 44 (0) 1249 466966
John Dawson, Chief Executive Andrew Franklin, Chief Financial Officer Sarah Robinson, Company Secretary
Buchanan	+ 44 (0) 20 7466 5000
Mark Court / Sophie Cowles / Jane Glover
Numis Securities Limited	+ 44 (0) 20 7260 1000
Nominated Adviser: Michael Meade / Freddie Barnfield
Corporate Broking: James Black / Toby Adcock

Notes to editors:

About Alliance

Alliance, founded in 1998, is an international specialty pharmaceutical company based in Chippenham, Wiltshire, UK. The Company has sales in more than 100 countries worldwide via direct sales, joint ventures and a network of distributors.  Alliance has a strong track record of acquiring the rights to established niche products and it currently owns or licenses the rights to approximately 90 pharmaceutical and consumer healthcare products. The Company continues to explore opportunities to expand its product portfolio.

Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.

Chairman's and Chief Executive's Statement

Alliance Pharma in 2016 is twice the size that it was in 2015. We are a transformed business looking forward to greatly increased opportunities in 2016 and beyond. The integration of the Sinclair Healthcare Products business acquired in December 2015 has brought us 27 new products, increasing our portfolio to some 90 products, and extended our reach from around 40 countries to over 100. We are now a truly international business, with half of our sales in markets outside the UK.

The original Alliance products performed strongly in the first half and the ex-Sinclair products have made an immediate contribution to our results, in line with our expectations.

Integration of the Sinclair operations is advancing well. We have maintained the flow of the business and will be independent from Sinclair in terms of the cash generating activities in Q4 this year. Other items such as packaging and livery changes that depend upon regulatory approvals will take up to 18 months to be complete in all the territories.

Most of the key positions within the organisation have now been filled and we are working hard to implement standard ways of working and to develop a common culture, building on the best of the two organisations.

Trading performance

In the first half of 2016, sales more than doubled to £46.4m (H1 2015: £22.8m). The ex-Sinclair products contributed sales of £20.6m, in line with expectations, while the balance of £25.8m represented over 13% growth in the original Alliance portfolio. This strong performance reflected 6% underlying growth, augmented by 7% from one-off events such as the full year effects of products acquired in 2015 or products with restored availability. 

The weakening of Sterling against the Euro and the US Dollar that developed during the half year had the effect of increasing sales by 2% when compared to the rates at the start of the year. The impact to profit before tax is significantly less due to the benefit to sales being offset by increased costs denominated in these currencies.

Our three strategic growth brands all performed well. Our largest-selling brand is now the scar reduction product, Kelo-cote™, which achieved H1 sales of £4.1m from a widely spread international base. Hydromol™, our emollient range, maintained its double digit growth rate, with H1 sales of £3.5m predominantly from the UK. And MacuShield™, our nutritional supplement product for age related macular degeneration (AMD) delivered H1 sales of £2.0m, the majority of which originated from the UK and Ireland. This compared with £1.4m in the five months after we acquired it in February 2015.

UK

The UK remains our largest territory returning sales of £24.0m (H1 2015: £18.3m).

In addition to Hydromol, mentioned above, other notable achievements included:

The consumer healthcare brands performing well. Ashton & Parsons Infants' Powders grew by 51% to £1.1m in H1 as we signed-up more national retail chains and supported them with advertising investment. Brand loyalty is strong and we expect further growth as awareness of the brand spreads. Additionally, Anbesol, our treatment for mouth ulcers and teething, had sales of £0.8m in H1, an increase of 10% over the prior year.

In ophthalmology, UK MacuShield sales were £1.3m, compared with £1.0m for the first five months of 2015.

We were able to bring our bladder cancer treatment, ImmuCyst™, back to the market in February as our supplier, Sanofi Pasteur, resumed production after a 3½-year suspension. Production remains restricted, so we will not be able to expand our market share beyond about 25% and we are thus managing sales carefully to ensure continuity of care to every patient who begins a course of treatment. Volumes have been building steadily and we are confident that we will sell all our available supplies, yielding revenues of around £1 million in 2016.

Sales of Forceval capsules continued their strong recovery from stock-outs, with UK sales up 36% to £1.3m in H1 2016.

Western Europe (excl. UK)

Sales for the rest of Western Europe totalled £11.7m (H1 2015: £2.3m).

In France sales were £4.5m with the largest seller being the burns treatments Flammazine / Flammacerium at £1.4m.

In the Republic of Ireland, sales were £2.4m. Nu-Seals achieved sales of £1.1m compared with £1.0m in the prior year as the threat of generic substitution seems to have abated. Additionally MacuShield performed strongly with sales of £0.4m compared with £0.2m in the first five months of 2015.

In the Germany, Austria, Switzerland (DACH) region, sales were £2.0m with the largest product being Flammazine at £0.9m.

Spain and Italy recorded sales of £1.4m and £1.3m respectively with Aloclair, the mouth ulcer treatment, being the largest product in each country with sales of £0.8m and £0.9m respectively.

International

Total sales outside of Western Europe were £10.7m (H1 2015: £2.2m).

Kelo-cote was the largest selling international product recording sales of £3.2m, with £0.6m coming from Latin America, £0.9m coming from China and £0.8m from Southeast Asia. 

Flammazine sold £1.1m with £0.5m coming from Central and Eastern Europe (CEE) and £0.5m from the Middle East and Africa (MEA); and Aloclair £1.0m with £0.5m from CEE. International sales for Syntometrine were £0.7m and the range of child nutrition products acquired from Sinopharm in China last year achieved sales of £0.4m.

Financial performance

Pre-tax profits more than doubled to £11.7m (H1 2015: £5.5m). This was a particularly encouraging result in the first period following the acquisition of the Sinclair products.

Gross margin was 56.0%, resulting in gross profit of £26.0m (H1 2015: £13.8m, 60.5%). This lower gross margin percentage is in line with our expectations as the Sinclair business has a slightly lower average gross margin than our original Alliance business. We expect average margin for the combined business to be in the range 55%-60% going forward.

Operating costs for the half year totalled £13.4m compared with £7.7m in the first half of 2015. Marketing investment was mainly directed at Kelo-cote, Hydromol, MacuShield, Diclectin, Ashton & Parsons, the re-introduction of ImmuCyst and the Flamma franchise. Transition costs, including interim staff, totalled £1.3m.  Whilst there have been transition costs associated with the integration of the Sinclair acquisition that will not recur in 2017, they will be compensated by the full year effect of employees recruited during this year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA), defined as Operating Profit (incl. share of Joint Venture profit) less Depreciation and Amortisation, was £13.2m (H1 2015: £6.3m). This represents 28.5% of sales, placing us close to the top of our 25-30% target range.

Alliance remains a strongly cash-generative business. However, cash generation in the short term has been constrained by an increase in working capital from the balance of trade debtors and creditors associated with the acquisition of the Sinclair products. Working capital, with the exception of inventory, was not purchased as part of the Sinclair acquisition and we have therefore seen a build-up in H1 that we expect to now stabilise. Despite this, cash flow from Operating Activities in the first half increased to £4.2m (H1 2015: £2.8m). 

Net debt rose to £79.0m from £71.5m at the end of 2015. The increase was partly due to increases in working capital levels and partly due to Sterling's weakness following the EU referendum, as approximately half our debt is denominated in Euros and US Dollars. At constant exchange rates, the 2016 half year figure would have been approximately £75.8m. The movement in foreign denominated loans and subsidiaries is largely accounted for within equity, therefore there is minimal P&L impact from the exchange rate movement on our loans.

The bank debt/EBITDA ratio remained stable over the period, being 2.8 times at the end of the first half and also 2.8 times at the end of 2015 (both including historic Sinclair pro forma EBITDA). The ratio at half year was adversely impacted by Sterling's weakness on net debt and the increase in working capital. From the second half of 2016 onwards we expect to reduce this figure progressively as cash generation increases and working capital stabilises.

At the end of the period we had unused bank facilities of £20.5m. This gives us ample headroom to finance bolt-on additions if attractive opportunities arise.

Dividend

In line with our progressive dividend policy, and given the strong progress made in the first half of 2016, we are making an interim payment of 0.403p per ordinary share (H1 2015: 0.366p). This represents an increase of 10% on last year's figure while maintaining dividend cover at more than 3 times earnings.

The interim dividend will be paid on 12 January 2017 to shareholders on the register on 23 December 2016.

Strategy

Our strategy is to build our portfolio by acquiring products that are already established in their market or by in-licensing already-developed products for launch. We deploy our capital to grow our cash generating portfolio, leaving activities such as manufacturing, storage and logistics to be outsourced to leading specialist organisations in these fields.

In building our portfolio we balance two elements: the first being brands with growth potential in which we invest and the second being well-established niche brands that will maintain their sales for many years with little or no promotion, thus providing a cash generating "bedrock" that feeds the growth activities. By balancing the two elements, we can invest in targeted marketing to grow sales while maintaining good cash generation and profitability.

Under our long-established 'buy and build' strategy we supplement organic growth with acquisitions that allow us to accelerate expansion and adjust the balance of our portfolio. The Sinclair transaction in December 2015 was our 31st and largest-ever acquisition. We made no acquisitions in H1 2016.

The Sinclair business brought us brands in both the 'growth' and 'bedrock' categories, leaving the balance broadly unchanged. Since the acquisition we have been refining our strategies for individual brands, to determine which products and which markets will be the focus of our marketing investment.

Sinclair has greatly expanded our international footprint - lifting non-UK sales from about 19% of turnover to approximately 50%, giving us a market presence in some 60 additional countries and giving us critical mass in the major EU territories. This creates new opportunities to broaden the marketing and distribution of brands - although careful analysis and planning is necessary, as a successful niche brand from one country may face a very different competitive landscape in other markets. Our greater scale and footprint also bring strategic advantages. Alliance is now a credible candidate for larger and more complex acquisitions in a wider range of territories; and we are also well placed to broaden the scope of existing agreements, as indicated by yesterday's announcement to acquire the licensing and distribution rights to Diclectin in a further nine EU countries

We continue to make good progress towards UK registration for Diclectin. This well-established product, which has been a routinely used treatment in Canada for over 30 years for nausea and vomiting of pregnancy. In the United States, it was licensed by the FDA in 2013 under the name Diclegis with a Category A safety rating for drugs used during pregnancy, and has performed strongly since launch.  We expect UK registration next year, enabling us to begin sales in the second half.

In the meantime, in the UK consumer health market, we are preparing to relaunch Lypsyl in the second half of this year. We have re-engineered the product and upgraded the pack design to enhance its shelf presence. The lip balm market is a crowded one, but Lypsyl still enjoys high consumer awareness - the trademark was first registered 125 years ago - and we are confident that this rejuvenated brand can reclaim a strong position.

The significantly greater scale of our business has highlighted the need for investment in a new enterprise resource planning (ERP) system to manage the enlarged portfolio and facilitate further expansion in the future. We will start this project in early 2017 once the majority of the Sinclair integration has completed.

Team

Prior to the acquisition of the Sinclair products, we had fine-tuned the leadership of the major functions within the business and also had in place Country Managers for France and Germany. This greatly facilitated our absorption of the Sinclair products business. As part of the Sinclair transaction, Dario Opiparo transferred to us as Country Manager for Italy. We promoted Steve Lobb to Head of UK & Ireland; Alex Duggan to Head of Strategy for our Global Consumer Brands; and Karim Husny to be Head of our International Business. Thus we have been able to hit the ground running in taking over the new business that effectively doubled the size of our operation. To complement the foregoing, we have appointed Luis Silva as Country Manager for Spain, Roger Lim as Regional Business Manager for Southeast Asia and we expect to appoint a new head of our enlarged China business in the near future. We thus have in place senior managers who can provide market insight and knowledge across all our geographic interests.

Charity

We continue to donate products regularly to International Health Partners, which distributes medicines to doctors in the world's neediest areas. We also support employee fundraising for local causes including Wiltshire Air Ambulance and national charities such as British Heart Foundation and The Alzheimer's Society.

Outlook

We are confident in the outlook for Alliance. We are putting together a high calibre team within an efficient organisation using class-leading systems to support further profitable transformation over the next few years. In addition we will be investing in Diclectin to provide a new platform for future growth.

In terms of the business environment, it is still too early to assess the long-term impact of the UK's decision to renegotiate its relationship with the European Union, which is reported will take considerable time. However, with operations in France, Germany, Italy and Spain, we do not expect market access to be a problem - and all our licences are held within individual member states.

For the rest of this year, our focus will be on assimilating the ex-Sinclair business and beginning to exploit the opportunities it opens up for us. We do not anticipate any further substantial acquisitions in the very near term, but remain alert to bolt-on opportunities that add value. As we move through into next year, we will be looking for the kind of product acquisitions and in-licensing deals across Europe, such as Diclectin, that might not have been open to us before. The past six months have begun the transformation of Alliance, and we are encouraged by its progress so far.

Unaudited Consolidated Income Statement

For the six months ended 30 June 2016

		Unaudited         Six months ended 30 June 2016	Unaudited  Six months ended 30 June 2015
		Total	Total
	Note	£ 000s	£ 000s
Revenue		46,372	22,795
Cost of sales		(20,392)	(8,996)
Gross profit		25,980	13,799
Operating expenses
Administration and marketing expense		(12,862)	(7,232)
Amortisation of intangible assets		(84)	(99)
Share-based employee remuneration		(404)	(385)
		(13,350)	(7,716)
Operating profit		12,630	6,083
Share of joint venture profits		343	26
Operating profit including share of joint venture profits		12,973	6,109
Finance Costs
Interest payable and similar charges	4	(1,660)	(722)
Interest income	4	54	35
Other finance income	4	375	102
		(1,231)	(585)
Profit on ordinary activities before taxation		11,742	5,524
Taxation	5	(2,169)	(1,152)
Profit for the year attributable to equity shareholders		9,573	4,372
Earnings per share
Basic (pence)	9	2.04	1.65
Diluted (pence)	9	2.02	1.64

Unaudited Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2016

			Unaudited          Six months ended 30 June 2016	Unaudited Six months ended 30 June 2015
			£ 000s	£ 000s
Profit for the period			9,573	4,372
Other items recognised directly in equity:
Items that may be reclassified to profit or loss: Interest rate swaps - cash flow hedge			(509)	80
Deferred tax on interest rate swaps			102	(16)
Foreign exchange translation differences			1,129	(3)
Total comprehensive income for the period			10,295	4,433

 

Unaudited Consolidated Balance Sheet

As at 30 June 2016

			Unaudited 30 June 2016		Audited 31 December 2015
	Note		£000s		£000s
Assets
Non-current assets
Intangible assets	6		266,830		259,945
Property, plant and equipment			1,182		1,013
Joint Venture investment			1,808		1,465
Joint Venture receivable			1,462		1,462
Deferred tax asset			520		418
Other non-current assets			328		122
			272,130		264,425
Current assets
Inventories			16,216		12,910
Trade and other receivables	7		22,718		11,630
Cash and cash equivalents			3,936		3,229
			42,870		27,769
Total assets			315,000		292,194
Equity
Ordinary share capital			4,684		4,682
Share premium account			108,332		108,308
Share option reserve			3,014		2,610
Reverse takeover reserve			(329)		(329)
Other reserve			(505)		(98)
Translation reserve			1,161		32
Retained earnings			51,659		47,237
Total equity			168,016		162,442
Liabilities
Non-current liabilities
Long term financial liabilities	11		59,380		58,968
Other liabilities			114		1,496
Deferred tax liability			39,519		37,413
Derivative financial instruments			630		120
			99,643		97,997
Current liabilities
Cash and cash equivalents			2,300		31
Financial liabilities	11		21,269		15,776
Corporation tax			2,022		2,075
Trade and other payables	8		21,750		13,873
			47,341		31,755
Total liabilities			146,984		129,752
Total equity and liabilities			315,000		292,194

 

Unaudited Consolidated Statement of Cash Flows

For the six months ended 30 June 2016

		Unaudited Six months ended 30 June 2016	Unaudited Six months ended 30 June 2015
		£ 000s	£ 000s
Operating activities
Result for the period before tax		11,742	5,524
Interest payable		1,660	722
Interest receivable		(54)	(35)
Other finance costs		(375)	(102)
Depreciation of property, plant and equipment		181	136
Amortisation of intangible assets		84	99
Share-based employee remuneration		404	385
Change in inventories		(3,306)	(1,369)
Change in investments		(343)	(26)
Change in trade and other receivables		(11,088)	(768)
Change in trade and other payables		7,429	(815)
Tax paid		(2,101)	(964)
Cash flows from operating activities		4,233	2,787
Investing activities
Interest received		54	35
Payment of deferred consideration		(4,503)	-
Development costs capitalised		(46)	(7)
Purchase of property, plant and equipment		(325)	(248)
Purchase of other intangible assets		-	(6,500)
Purchase of other non-current assets		(203)	-
Net cash used in investing activities		(5,023)	(6,720)
Financing activities
Interest paid and similar charges		(1,353)	(588)
Loan issue costs		(280)	-
Proceeds from exercise of share options		26	97
Dividend paid		(1,714)	(880)
Receipt from borrowings		4,500	5,500
Repayment of borrowings		(3,000)	(1,500)
Net cash used in financing activities		(1,821)	2,629
Net movement in cash and cash equivalents		(2,611)	(1,304)
Cash and cash equivalents at beginning of period		3,198	1,020
Effects of exchange rate movements		1,049	(27)
Cash and cash equivalents at end of period		1,636	(311)

Unaudited Consolidated Statement of Changes in Equity

For the six months ended 30 June 2016

	Ordinary Share capital	Share Premium account	Share Option reserve	Reverse takeover reserve	Other reserve	Translation Reserve	Retained earnings		Total equity
	£ 000s	£ 000s	£ 000s	£ 000s	£ 000s	£ 000s	£ 000s		£ 000s
Balance 1 January 2015 (audited)	2,641	29,388	1,995	(329)	(103)	-	37,188	70,780
Issue of shares	3	94	-	-	-	-	-	97
Dividend payable/paid	-	-	-	-	-	-	(2,643)	(2,643)
Share options charge	-	-	385	-	-	-	-	385
Transactions with owners	3	94	385	-	-	-	(2,643)	(2,161)
Profit for the period	-	-	-	-	-	-	4,372	4,372
Other comprehensive income
Interest rate swaps - cash flow hedge	-	-	-	-	80	-	-	80
Deferred tax on interest rate swaps	-	-	-	-	(16)	-	-	(16)
Foreign exchange translation differences	-	-	-	-	-	-	(3)	(3)
Total comprehensive income for the period	-	-	-	-	64	-	4,369	4,433
Balance 30 June 2015 (unaudited)	2,644	29,482	2,380	(329)	(39)	-	38,914	73,052
Balance 1 January 2016 (audited)	4,682	108,308	2,610	(329)	(98)	32	47,237	162,442
Issue of shares	2	24	-	-	-	-	-	26
Dividend payable/paid	-	-	-	-	-	-	(5,151)	(5,151)
Share options charge	-	-	404	-	-	-	-	404
Transactions with owners	2	24	404	-	-	-	(5,151)	(4,721)
Profit for the period	-	-	-	-	-	-	9,573	9,573
Other comprehensive income
Interest rate swaps - cash flow hedge	-	-	-	-	(509)	-	-	(509)
Deferred tax on interest rate swaps	-	-	-	-	102	-	-	102
Foreign exchange translation differences	-	-	-	-	-	1,129	-	1,129
Total comprehensive income for the period	-	-	-	-	(407)	1,129	9,573	10,295
Balance 30 June 2016 (unaudited)	4,684	108,332	3,014	(329)	(505)	1,161	51,659	168,016

Notes to the Half Yearly Report

For the six months ended 30 June 2016

1.         Nature of operations

Alliance Pharma plc ("the company") and its subsidiaries (together "the Group") acquire, market and distribute pharmaceutical products. The company is a public limited company incorporated and domiciled in England. The address of its registered office is Avonbridge House, Bath Road, Chippenham, Wiltshire, SN15 2BB.

                The company is listed on the London Stock Exchange, Alternative Investment Market (AIM).

2.         General information

The information in these financial statements does not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and is un-audited. These financial statements have been prepared in accordance with the AIM rules, and IAS 34 has not been adopted. A copy of the Group's statutory accounts for the period ended 31 December 2015, prepared under International Financial Reporting Standards as adopted by the European Union, has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified and did not contain statements under section 498(2) or section 498(3) of the Companies Act 2006.

This interim financial report for the six month period ended 30 June 2016 (including comparatives for the six months ended 30 June 2015) was approved by the Board of Directors on 13 September 2016.

The current rate of cash generation by the Group comfortably exceeds the capital and debt servicing needs of the business (though there cannot, of course, be absolute certainty that the rate of cash generation will be maintained).  The Board remains confident that all the bank covenants will continue to be met for at least the next 12 months.  The Group has a £5m Working Capital Facility of which £2.2m is undrawn at the balance sheet date and which the Board believes should comfortably satisfy the Group's working capital needs for at least the next 12 months.

3.         Accounting policies

The same accounting policies and methods of computation are followed in the interim financial report as published by the company in its 31 December 2015 Annual Report. The Annual report is available on the company's website alliancepharmaceuticals.com.

4.         Finance Costs                      

	Unaudited Six months ended  30 June 2016	Unaudited Six months ended 30 June 2015  2015
	£000s	£000s
Interest payable and similar charges
On loans and overdrafts	(1,397)	(536)
Amortised finance issue costs	(177)	(52)
Notional interest	(86)	(134)
	(1,660)	(722)
Interest income	54	35
Other finance income
Foreign exchange movements	375	102
	375	102
Finance costs - net	(1,231)	(585)

            Notional interest relates to the unwinding of the deferred consideration on the MacuVision acquisition. 

 

Notes to the Half Yearly Report (continued)

For the six months ended 30 June 2016

5.         Taxation

Analysis of charge in period.

	Unaudited Six months ended 30 June 2016	Unaudited Six months ended 30 June 2015
	£ 000s	£ 000s
United Kingdom corporation tax at  20%/20.5%
In respect of current period	2,046	920
Current tax	2,046	920
Deferred  tax	123	232
Taxation	2,169	1,152

6.         Intangible assets

		Goodwill	Technical know-how, trademarks and distribution rights	Development costs	Total
		£ 000s	£ 000s	£ 000s	£ 000s
Cost
At 1 January 2016 (audited)		26,035	237,324	438	263,797
Additions		-	-	47	47
Exchange adjustments		-	6,922	-	6,922
At 30 June 2016 (unaudited)		26,035	244,246	485	270,766
Amortisation
At 1 January 2016 (audited)		-	3,852	-	3,852
Amortisation for the period		-	84	-	84
At 30 June 2016 (unaudited)		-	3,936	-	3,936
Net book amount
At 30 June 2016 (unaudited)		26,035	240,310	485	266,830
At 1 January 2016 (audited)		26,035	233,472	438	259,945

 

Notes to the Half Yearly Report (continued)

For the six months ended 30 June 2016

7.         Trade and other receivables

	Unaudited 30 June 2016	Audited 31 December 2015
	£ 000s	£ 000s
Trade receivables	19,597	8,783
Other receivables	352	1,062
Prepayments and accrued income	1,710	525
Amounts owed by Joint Venture	1,059	1,260
	22,718	11,630

8.         Trade and other payables

	Unaudited 30 June 2016	Audited 31 December 2015
	£ 000s	£ 000s
Trade payables	5,829	1,153
Other taxes and social security costs	1,173	905
Accruals and deferred income	6,489	5,663
Other payables	1,262	728
Deferred consideration	2,184	5,026
Amounts due to Joint Ventures	1,375	398
Dividend payable	3,438	-
	21,750	13,873

 

Notes to the Half Yearly Report (continued)

For the six months ended 30 June 2016

9.         Earnings per share (EPS)

Basic EPS is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.  For diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

A reconciliation of the weighted average number of ordinary shares used in the measures is given below:

	Six months ended 30 June 2016	Six months ended 30 June 2015
	Weighted average number of shares 000s	Weighted average number of shares 000s
For basic EPS	468,297	264,216
Share options	6,329	3,097
For diluted EPS	474,626	267,313

	Six months to 30 June 2016	Six months to 30 June 2015
	£ 000s	£ 000s
Earnings for basic and diluted EPS	9,573	4,372

The resulting EPS measures are:

	Six months to 30 June 2016	Six months to 30 June 2015
	Pence	Pence
Basic EPS	2.04	1.65
Diluted EPS	2.02	1.64

 

Notes to the Half Yearly Report (continued)

For the six months ended 30 June 2016

10.       Dividends

		Six months ended 30 June 2016					Six months ended 30 June 2015
			Pence/share	£ 000s			Pence/share      £000s
	Amounts recognised as distributions to owners in the year
	Interim dividend for the prior financial year		0.366			1,714	0.333	880
	Final dividend for the prior financial year		0.734			3,438	0.667	1,763
					5,152			2,643

The final dividend for the prior financial year was approved by the Board of Directors on 31 March 2016 and subsequently by the shareholders at the Annual General Meeting on 25 May 2016. This dividend has been included as a liability as at 30 June 2016, in accordance with IAS 10 Events After the Balance Sheet Date, and was paid on 13 July 2016 to shareholders who were on the register of members at 17 June 2016.

11.       Borrowings

            Movements in borrowings are analysed as follows:  

	Six months ended 30 June 2016  £ 000s
At 1 January 2016 (audited)	74,744
Repayment of borrowings	(3,000)
Revolving Credit Facility drawdown	4,500
Amortisation of prepaid arrangement fees	176
Additional prepaid arrangement fee	(280)
Exchange movements	4,509
At 30 June 2016 (unaudited)	80,649

The carrying amount of the group's borrowings are denominated in the following currencies:

	Unaudited 30 June 2016	Audited 31 December 2015
	£ 000s	£ 000s
GBP	38,581	37,185
USD	27,068	24,324
EUR	15,000	13,235
	80,649	74,744

 

END

 

 

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