Final Results
Newmark Security plc
("Newmark" or the "Group")
Final Results
Newmark Security plc (AIM:NWT), a leading provider of electronic and physical security systems, today announces its final results for the year ended 30 April 2012.
Financial Highlights:
|
· |
Turnover increased by 3.5% to £13.1 million (2011: £12.7 million) |
|
· |
Gross profit remained stable at £5.3 million (2011: £5.3 million) |
|
· |
Gross margin fell slightly to 40.2% overall (2011: 42.0%) |
|
· |
Profit from operations fell to £189K (2011: £808K), mainly due to a £194k (2011: £Nil) impairment provision against certain development costs and professional fees and other costs of £176K (2011: £40K) in respect of claims for constructive dismissal by two former employees and claims made against them for infringement of intellectual property rights/breach of warranty and restrictive covenants. |
|
· |
Earnings per share of 0.04 pence (2010: 0.19 pence) |
|
· |
Cash flow from operating activities increased to £2.0 million (2011: £1.2 million)
|
Commenting on the results Maurice Dwek, Chairman of Newmark Security plc, said: "The Board is obviously disappointed by the trading results for the year under review. However, the Board starts this year with increased optimism especially with the news of the Post Office contract in Safetell. The Board expects an improvement in sales of our OEM product offering to the US market during the current financial year as well as significant sales growth of our new SATEON access control software in future years as the product becomes more established. Despite the continuing worldwide economic problems affecting trading levels generally, the Board believes that Newmark is well positioned for growth in the medium to long term".
For further information:
|
Newmark Security plc |
|
|
Maurice Dwek, Chairman |
Tel: +44 (0) 20 7355 0070 |
|
Brian Beecraft, Finance Director |
|
Seymour Pierce Limited |
|
|
Mark Percy / David Foreman, Corporate Finance |
Tel: +44 (0) 20 7107 8000 |
|
|
Notes to editors
Newmark Security PLC is a leading provider of electronic and physical security systems, which focus on personal security and the safety of assets. Operating through two established and wholly owned divisions, Grosvenor Technology (Electronic) and Safetell (Asset Protection), the Group listed on AIM in 1997.
Founded in 1989 Grosvenor Technology provides state of the art access control, security and data acquisition systems delivered via its flagship JANUS access platform and its CUSTOM brand OEM product range. Clients include BAE Systems, UK Air Traffic Control, BSkyB, Merrill Lynch (Europe, Middle East and Asia) as well as M&S, Morrisons, Tesco, Network Rail, British Royal Palaces, government departments and many universities. More information can be found at www.gtl.biz
Offering staff and asset protection since 1987, Safetell is the UK's leading provider of fixed and reactive security screens, reception counters, cash management systems and associated security equipment. Safetell's customers range from leading blue chip organisations to single sites including banks and building societies, police forces and the Post Office, local authorities and government departments, forecourt retailers and supermarket chains. More information can be found at www.safetell.co.uk
CHAIRMAN'S STATEMENT
In my Chairman's statement last year, I commented on the variable trading for the few months of the year just completed, and unfortunately this continued throughout the year. The current economic difficulties in the country continued to affect us particularly reduced public sector spending and difficult trading conditions in UK retail banks.
As a precaution on 25 November 2011, the Group raised a facility of up to £300k through the issue of a 10 per cent. secured loan note on 25 November 2011 with certain Directors of the Company. Under the terms of the Loan Note instrument, the Loan Notes are repayable in full by the third anniversary of the issue of the Loan Notes. However only £105,000 of this facility had been utilised by the year end. As a result of this refinancing, the Board has decided not to recommend a dividend for the year but instead plans to repay the loan notes issued to date.
Sales in the US for Grosvenor's original equipment manufacturer ("OEM") products have been disappointing mainly due to the length of the integration period with customers, and we expect a significant increase in turnover in this market during the current year. We sold our first new SATEON access control system just before the financial year end, and are confident of increasing revenue streams from this exciting new development over the years ahead. We have been very encouraged by the reception that SATEON has received from audiences both in the UK and abroad.
Market conditions have also affected sales of our OEM range of products in the UK and Europe. However there has been a favourable response to our attempts to open up new markets for these products in Eastern Europe, with some new customers signing up as partners.
Sales of products of the asset protection division were slightly higher this year although the work was generally typified by an increase in smaller value orders. However, and as announced on 14 June 2012, we are delighted to have secured a very substantial order from Post Office Limited since the year end. Safetell has been supplying and maintaining time delayed security safes to the UK Post Office since 2004 and is proud to be associated with the largest investment and network programme in the history of the Post Office.
The £3.4 million order for the time delayed security safes covers the initial stock of which approximately £1.4 million will be supplied during the first 6 months of the contract starting in late summer. Further substantial orders are expected as the network transformation programme continues until May 2015.
Sales of services of the asset protection division were over £4 million for the first time, with the successful completion of a one off contract worth approximately £400k for a large financial institution.
Although the concept of our trials of the T9 cash transit case proved successful, the Board decided to develop a new outer casing using different and lighter materials. The new design will save costs going forward whilst at the same time offering greater flexibility. New field trials on this should be complete with our customers by the end of the current financial year.
Revenue for the year from continuing businesses was £13,094k (2011: £12,652k), an increase of 3.5 per cent. Gross profit for the year from continuing operations was £5,268k (40.2 per cent. of sales) compared to £5,312k (42.0 per cent.). The change in gross margin reflects both the mix of sales in both divisions as well as pricing pressures in the electronic division. Cost of sales also includes the impact of an impairment provision of £194k (2011: £Nil) against development costs where the future income stream appears unlikely to cover the accumulated cost.
Revenue in the asset protection division increased by 8.4 per cent. in the year from £6,510k to £7,055k, whilst the Electronic division fell 1.7 per cent. from £6,142k to £6,039k.
Earnings per share are shown in the income statement as 0.04 pence (2011: 0.19 pence). However, the earnings per share before legal costs are 0.08 pence (2011: 0.20 pence) as calculated in note 2 below.
Revenue per employee decreased to £99,954 from £100,413.
The Board believes that the OEM division of Grosvenor and Safetell are leaders in their particular markets whilst Grosvenor is a major force at the upper price end of the access control market. There were no environmental issues having a major impact on the Group in the year.
The Group continues to invest in research and development which the Board is confident will benefit the results in the future.
A detailed review of their activities, results and future developments is set out in the divisional results below.
Financial results
Revenue for the year was £13,094k (2011: £12,652k) whilst the profit from operations was £189k (2011: £808k). The main commercial factors affecting the results of the divisions are set out below.
Electronic Division
Turnover £6,039k (2011: £6,142k)
Profit from operations £318k (2011: £903k)
Profit before tax £296k (2011: £882k)
Revenue from the UK based OEM clocks division was flat in the year being £2,138k (2011: £2,188k) solely due to continuing difficult market conditions in the UK and the EU, and greater competition for fewer major projects. However, we are pleased that new customers in Eastern Europe are starting to sign up as partners and some are already promoting Grosvenor products and actively undertaking software development to interface with our IT series clocks and terminals. There is a real opportunity for growth in these new territories particularly Poland, Czech Republic and the Baltics.
The revenue of the new US operation for OEM clocks was £163k. As reported previously, revenue has been lower than originally envisaged due to the length of the customer integration period. However, we now have several customers with integrations completed and expect to see strong growth in the current year. Interest from the US continues to grow and within the last month we received confirmation from a large workforce management organisation which is signing up to use Grosvenor products for all their new system clocks. Other potential US customers are at various stages of interest and integration.
Revenue for the access control division fell to £3,738k (2011: £3,954k). Revisions and updates of the new SATEON software continue to be released adding more features and functionality to the system. The Grosvenor sales team has been introducing SATEON to a wide-ranging audience in both domestic and export markets particularly highly respected international security consultants and integrators. We have been greatly encouraged by the reception that SATEON has received and feedback confirms that people are attracted by the fact that SATEON is 100 per cent. browser based, runs on a SQL database platform, and is scalable, multilingual, and competitively priced. Most of all, SATEON looks and feels completely different to the competition and has a modern and highly intuitive user interface.
Profit from operations was lower due to the reduction in turnover, increased pricing pressures in the access control division and increased amortisation and impairment provisions of capitalised development costs.
In the UK, we can offer a clear upgrade path to SATEON from Grosvenor's historical software product, JANUS and this represents a significant opportunity to establish quickly vital reference projects. On an international level, SATEON has been introduced to integrators in Ireland, France, UAE, Turkey, Russia, Libya, Saudi Arabia, Qatar, Kuwait and Jordan, and are being invited to quote regularly on overseas projects. Consequently project quotations are being produced on a regular basis and we have built a respectable pipeline over a relatively short period. An area of great interest to many integrators is the extent of third-party integration already incorporated into what is a brand new product. SATEON version 2.4 integrates with two leading international CCTV manufacturers, a major international intruder system, and a major global fire system which has led to a number of opportunities and introductions to integrators.
A common theme with international integrators is that they have a genuine desire to move away from their current access control manufacturer. In most instances these manufacturers are large and internationally established, but have a staid outlook on the product and the business. This is a key aspect we intend to exploit as we believe SATEON is a truly viable alternative to the global 'big name' brands on both performance and costs of ownership. The key to success will be for us to offer good customer service and a commitment to working with our customers to do everything in our power to help them win projects using SATEON.
Asset Protection Division
Turnover £7,055k (2011: £6,510k)
Profit from operations £456k (2011: £531k)
Profit before tax £436k (2011: £511k)
Safetell sales were 8 per cent. higher than last year due partly to a one-off contract for the service division from a large financial institution completed over a 5 month period. Gross margin fell as a result of the changing product mix, new product developments and increased pressure from existing clients to reduce prices on long term contracts.
The Products Division sales showed a slight improvement over last year but the product mix was significantly different from the historical patterns. The number of orders received in the year increased by 34 per cent. whilst the average order value was 23 per cent. lower than last year. During the year we benefited from the supply of cash handling equipment and counter maintenance to a large financial institution but the work was undertaken at low margins. The cost of developing new products also affected the overall margins. We do not expect this work to continue at the same levels in the current financial year, particularly as we have now established ourselves as the preferred supplier and we will now seek to offer these products to other financial institutions.
The sales of Eclipse rising screens to long term customers in retail finance and petrol retailing were limited to small orders for branch reconfiguration work. Sales of traditional products including CounterShield and FixedGlazing continued to be disappointing due to budget constraints within the Public Sector. Sales to the Post Office of RollerCash and BidiSafe in cash handling products were similar to last year. Safetell's focus on continued product development and seeking new customers and markets has, to a certain extent, replaced the falling sales of traditional products and will sustain the business until we see an increase in sales of Eclipse rising screens, CounterShield and FixedGlazing.
Sales in the Service Division exceeded £4 million for the first time, exceeding the previous year by 9.8 per cent. Margins were also slightly higher resulting in growth of operating profits by 13.9 per cent. with overheads remaining static in the year. The results reflect a full years trading on the new counter equipment repair contract with a large financial institution, which was reported in my statement last year and still has two years to run. A contract with another large financial institution was renewed in 2012 worth in excess of £1 million per annum.
During the year a one off contract worth approximately £400k was received and completed for a large financial institution. During the last quarter we have commenced service work for another well-known financial institution and we are hopeful this will develop into a long term revenue stream.
The trials of the T9 Cash Transit Case with Loomis ended in March this year with the concept proving to be successful. After deliberation with the Loomis security team and the valuable information obtained from the field trials, the Board decided to improve the current design by developing a new outer casing manufactured from different materials from the original design. The new design will eliminate expensive tooling and moulds and offer greater flexibility to accommodate different customer requirements in the future. New field trials on this should be complete with our customers by the end of the current financial year.
Sales in the current financial year will also benefit from an order received from the Post Office for time delay cash handling equipment. The Post Office Network Transformation Programme to convert 6,000 sub post offices into either Local or Mains branches over the next 3 years will start in August and we have received an order for £3.4 million for time delay safes and expect further substantial orders over the next 3 years. Sales to the Post Office in the current financial year are expected to be approximately £2 million if the programme remains on track. This contract will also provide an increased revenue stream for the Service Division in future years, once warranty periods expire.
Balance sheet and cash flow
Cash flow from operating activities increased in the year from £1.1 million to £2.1 million despite the reduction in profits. We maintained our tight credit control procedures so that the increase in receivables due to timing of sales in the previous year was reversed. This control was reflected in the fact that there were no significant bad debts arising in the year despite the financial difficulties faced by many businesses. There was also a substantial favourable movement in payables reflecting advance payments from customers on projects and controls over supplier payments.
Cash outflow from investing activities was slightly lower than last year at £1.3 million (2011: £1.5 million), due mainly to the payment of deferred consideration last year. Overall there was an improvement in cash and cash equivalents of £0.5 million (2011: outflow of £0.5 million).
The tax credit for the year again reflects the benefits of tax allowances on development expenditure.
Key Financial Risks of the Group
Details of the Group's financial risks are given in the financial statements..
Key Business Risks of the Group
Competition and client relationships
The Group invests in developing new products to remain competitive by offering customers the most advanced quality products. The Group also provides support services to maintain products. The strength of the Group's relationship with clients is dependent to a large part on its performance under its support services with them. If a client is not satisfied with the Group's services it may terminate or decide not to renew their contracts. The Group responds promptly to queries to reduce the risk of losing customers and also has an excellent record of staff retention. It is essential that high quality staff are recruited and then retained if client relationships are to be maintained and new customers won.
General demand for services
If economic conditions deteriorate, there is a risk that the Group may face reduced demand from its clients for its services. To mitigate this risk the Group focuses on diversifying its customer base in terms of business sectors and industry sectors. To mitigate the credit risk further and reduce exposure to potential bad debts, the Group maintains credit insurance policies and senor management review credit limits on a regular basis.
Employees
The Board would like to thank all the staff for their efforts, particularly given the difficult market conditions in which we currently operate.
Board Changes
The Board has agreed that I should become executive chairman to drive the business forward especially during these difficult economic conditions and the expected growth in our activities with the completion of major developments and expansion into new geographical areas.
Dividend
Following the refinancing in the year, the Board has decided not to recommend the payment of a dividend for the year ended 30 April 2012 (2011: 0.0275 pence per share).
Outlook
The Board is obviously disappointed by the trading results for the year under review. However, the Board starts this year with increased optimism especially with the news of the Post Office contract in Safetell reflecting the quality of our product offering and excellent relationship with that customer. Sales of our OEM product offering to the US market have been slower than anticipated due to the length of software integration periods but the Board expects an improvement in the current year. Although sales of our new SATEON access control software should increase steadily during the year, the Board anticipates that more significant sales growth will be achieved in the following years when the product is more established.
Despite the continuing worldwide economic problems affecting trading levels generally, the Board believes that Newmark is well positioned for growth in the medium to long term.
M DWEK Chairman
2 August 2012
|
CONSOLIDATED INCOME STATEMENT for the year ended 30 April 2012
|
|
|
|
|
|
|
2012 |
2011 |
|
|
|
£'000 |
£'000 |
|
Revenue |
|
13,094 |
12,652 |
|
Cost of sales |
|
(7,826) |
(7,340) |
|
Gross profit |
|
5,268 |
5,312 |
|
Administrative expenses pre legal costs |
|
(4,903) |
(4,464) |
|
Legal costs |
|
(176) |
(40) |
|
Administrative expenses - total |
|
(5,079) |
(4,504) |
|
Profit from operations |
|
189 |
808 |
|
Finance costs |
|
(127) |
(102) |
|
Profit before tax |
|
62 |
706 |
|
Tax credit |
|
115 |
151 |
|
Profit for the year |
|
177 |
857 |
|
Attributable to: |
|
|
|
|
- Equity holders of the parent |
|
177 |
857 |
|
Earnings per share |
|
|
|
|
- Basic (pence) |
|
0.04p |
0.19p |
|
- Diluted (pence) |
|
0.04p |
0.18p |
|
All amounts relate to continuing activities. |
|
|
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the year ended 30 April 2012April 2012 |
|
|
|
|
2012 |
2011 |
|
|
£'000 |
£'000 |
|
Profit for the year |
177 |
857 |
|
Foreign exchange losses on retranslation of overseas operations |
- |
(8) |
|
Total comprehensive income for the year |
177 |
849 |
|
Attributable to: |
|
|
|
- Equity holders of the parent |
177 |
849 |
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION at 30 April 2012 Company number: 3339998 |
|
|
|
|
|||||
|
ASSETS Non-current assets |
Note |
2012 £'000
|
2011 £'000 (Restated)
|
2010 £'000 (Restated)
|
|||||
|
Property, plant and equipment |
10 |
709 |
788 |
730 |
|||||
|
Intangible assets |
11 |
10,699 |
10,142 |
9,313 |
|||||
|
Total non-current assets |
|
11,408 |
10,930 |
10,043 |
|||||
|
Current assets |
|
|
|
|
|||||
|
Inventories |
14 |
1,520 |
1,469 |
1,503 |
|||||
|
Trade and other receivables |
15 |
2,373 |
2,885 |
2,402 |
|||||
|
Cash and cash equivalents |
|
2,100 |
1,295 |
1,861 |
|||||
|
Total current assets |
|
5,993 |
5,649 |
5,766 |
|||||
|
Total assets |
|
17,401 |
16,579 |
15,809 |
|||||
|
LIABILITIES |
|
|
|
|
|||||
|
Current liabilities |
|
|
|
|
|||||
|
Trade and other payables |
16 |
3,535 |
2,936 |
2,958 |
|||||
|
Other short term borrowings |
17 |
2,147 |
1,752 |
1,962 |
|||||
|
Corporation tax liability |
|
4 |
- |
160 |
|||||
|
Provisions |
21 |
81 |
117 |
123 |
|||||
|
Total current liabilities |
|
5,767 |
4,805 |
5,203 |
|||||
|
Non-current liabilities |
|
|
|
|
|||||
|
Long term borrowings |
18 |
424 |
486 |
68 |
|||||
|
Provisions |
21 |
84 |
84 |
100 |
|||||
|
Deferred tax |
22 |
324 |
454 |
412 |
|||||
|
Total non-current liabilities |
|
832 |
1,024 |
580 |
|||||
|
Total liabilities |
|
6,599 |
5,829 |
5,783 |
|||||
|
TOTAL NET ASSETS |
|
10,802 |
10,750 |
10,026 |
|||||
|
Capital and reserves attributable to equity holders of the company |
|
|
|
|
|||||
|
Share capital |
23 |
4,504 |
4,504 |
4,504 |
|||||
|
Share premium reserve |
24 |
502 |
502 |
502 |
|||||
|
Merger reserve |
24 |
801 |
801 |
801 |
|||||
|
Foreign exchange difference reserve |
24 |
(175) |
(175) |
(167) |
|||||
|
Retained earnings |
24 |
5,130 |
5,078 |
4,346 |
|||||
|
|
|
10,762 |
10,710 |
9,986 |
|||||
|
Non-controlling interest |
|
40 |
40 |
40 |
|||||
|
TOTAL EQUITY |
|
10,802 |
10,750 |
19,026 |
|||||
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
|
CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 30 April 2012 |
|
|
|
|
|||||
|
|
|
2012 |
2012 |
2011 |
2011 |
||||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
||||
|
Cash flow from operating activities |
|
|
|
|
|
||||
|
Net profit after tax |
|
177 |
|
857 |
|
||||
|
Adjustments for: |
|
|
|
|
|
||||
|
Depreciation and amortisation |
|
913 |
|
616 |
|
||||
|
Interest expense |
|
127 |
|
102 |
|
||||
|
Income tax credit |
|
(115) |
|
(151) |
|
||||
|
Operating cash flows before changes in working capital |
|
1,102 |
|
1,424 |
|
||||
|
Decrease/(increase) in trade and other receivables |
|
403 |
|
(375) |
|
||||
|
Decrease in inventories |
|
(51) |
|
34 |
|
||||
|
Increase in trade and other payables |
|
568 |
|
109 |
|
||||
|
Cash generated from operations |
|
|
2,022 |
|
1,192 |
||||
|
Income taxes received/(paid) |
|
|
92 |
|
(78) |
||||
|
Cash flows from operating activities |
|
|
2,114 |
|
1,114 |
||||
|
Cash flow from investing activities |
|
|
|
|
|
||||
|
Payments for property, plant & equipment |
|
(136) |
|
(203) |
|
||||
|
Sale of property, plant & equipment |
|
1 |
|
6 |
|
||||
|
Research & development expenditure |
|
(1,131) |
|
(1,108) |
|
||||
|
Acquisition of subsidiary |
|
- |
|
(156) |
|
||||
|
|
|
|
(1,266) |
|
(1,461) |
||||
|
Cash flow from financing activities |
|
|
|
|
|
||||
|
Proceeds loan notes |
|
105 |
|
- |
|
||||
|
Proceeds new bank loan |
|
- |
|
450 |
|
||||
|
Repayment of bank loans |
|
(96) |
|
(210) |
|
||||
|
Repayment of finance lease creditors |
|
(135) |
|
(126) |
|
||||
|
Dividends paid |
|
(124) |
|
(125) |
|
||||
|
Interest paid |
|
(127) |
|
(102) |
|
||||
|
|
|
|
(377) |
|
(113) |
||||
|
Increase/(decrease) in cash and cash equivalents |
|
|
471 |
|
(460) |
||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
Share capital |
Share premium |
Merger |
Foreign |
Retained |
Minority interest |
Total equity |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
1 May 2010 |
4,504 |
502 |
801 |
(167) |
4,346 |
40 |
10,026 |
|
Dividends |
- |
- |
- |
- |
(125) |
- |
(125) |
|
Total comprehensive income |
- |
- |
- |
(8) |
857 |
- |
849 |
|
30 April 2011 |
4,504 |
502 |
801 |
(175) |
5,078 |
40 |
10,750 |
|
1 May 2011 |
4,504 |
502 |
801 |
(175) |
5,078 |
40 |
10,750 |
|
Dividends |
- |
- |
- |
- |
(125) |
- |
(125) |
|
Total comprehensive income |
- |
- |
- |
- |
177 |
- |
177 |
|
30 April 2012 |
4,504 |
502 |
801 |
(175) |
5,130 |
40 |
10,802 |
1. Basis of preparation
The financial information set out above for the years ended 30 April 2012 and 2011 does not constitute the Group's statutory accounts within the meaning of Section 434 of the Companies Act 2006 but is derived from those accounts. Statutory accounts for the year ended 30 April 2011 have been delivered to the Registrar of Companies and those for 2012 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts. The auditors' reports were unqualified and did not contain statements under s.498 (2) or (3) Companies Act 2006. The results have been prepared using accounting policies consistent with those used in the preparation of the statutory accounts.
The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS"), IFRIC interpretations and the parts of the Companies Act 2006 applicable to companies reporting under IFRS. The Financial Statements have been prepared under the historical cost convention.
The preparation of Financial Statements in conformity with IFRS require the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial information, including the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.
The Directors have restated the prior year classification of assets and liabilities to split out positive cash balances offset against the bank overdraft within other short term borrowings. The April 2011 cash and cash equivalents balance has increased by £1,295,000 and the ther short term borrowings balance has increased by the same amount. There is no impact on the consolidated income statement for the year ended 30 April 2011.
|
|
|
|
|
|
2012
|
2011
|
|
|
£’000
|
£’000
|
|
Numerator
|
|
|
|
Earnings used in basic and diluted EPS – continuing operations
|
177
|
857
|
|
|
|
|
|
Denominator
|
No.
|
No.
|
|
Weighted average number of shares used in basic EPS
– continuing and discontinued operations
|
450,432,316
|
450,432,316
|
|
Effect of employee share options
|
-
|
19,800,000
|
|
Weighted average number of shares used in diluted EPS
|
450,432,316
|
470,232,316
|
Certain employee options have been excluded from the calculation of diluted EPS as their exercise price is greater than the weighted average share price during the year (i.e. they are out-of-the-money) and therefore it would not be advantageous for the holders to exercise those options. The total number of options in issue is disclosed in note 26.
The basic earnings per share before legal costs has also been presented since, in the opinion of the directors, this provides shareholders with a more appropriate measure of earnings derived from the Group's businesses. It can be reconciled to basic earnings per share as follows:
|
|
2012 |
2011 |
|
Basic earnings per share (pence) - basic |
0.04 |
0.19 |
|
Legal costs |
0.04 |
0.01 |
|
Earnings per share before legal costs - basic |
0.08 |
0.20 |
|
|
2012 |
2011 |
|
|
£'000 |
£'000 |
|
Reconciliation of earnings |
|
|
|
Profit used for calculation of basic earnings per share |
177 |
857 |
|
Legal costs |
176 |
40 |
|
Earnings before legal costs |
353 |
897 |
3. Dividends
The directors are not proposing a final dividend (2011:0.0275 pence per share) totaling £NIL (2011: £125,000).
- Ends -
This information is provided by RNS
Latest directors dealings
- 1 day ago Mattioli Woods
- 1 day ago Morgan Advanced Materials
- 1 day ago Capita
- 1 day ago Judges Scientific
- 1 day ago Me Group International