Interim Results

RNS Number : 5580N
Renew Holdings PLC
19 May 2015
 

Renew Holdings plc

("Renew" or the "Group" or the "Company")

 

Interim Results

 

Renew (AIM: RNWH), the Engineering Services Group supporting UK infrastructure, announces record interim results for the six months ended 31 March 2015, achieving further growth in both operating profit and revenue. With strong growth in the order book, expected revenue for the second half is fully secured and the Company is increasing the interim dividend by 50% to 2.25p.

 

Financial Highlights

 

H1 2015

H1 2014

 

Revenue

£252.1m

£207.6m

+21%

Adjusted operating profit*

£9.8m

£8.1m

+21%

Adjusted operating margin*

3.9%

3.9%

 

Adjusted profit before tax*

£9.5m

£8.0m

+19%

Adjusted earnings per share*

12.24p

10.23p

+20%

Interim dividend per share

2.25p

1.50p

+50%

 

*Adjusted results are shown prior to amortisation of intangible assets with comparative figures restated to reflect the reclassification of a discontinued business.       

 

Operational Highlights

·     Order book up 28% to £471m at 31 March 2015 (H1 2014: £369m)

§ Expected revenue for H2 secured

·     25% increase in Engineering Services order book to £382m (H1 2014: £306m)

·     Engineering Services revenue up 24% to £209.8m (H1 2014: £169.2m)

§ 14% organic growth excluding impact of two acquisitions completed in H2 2014

·     Engineering Services adjusted operating profit* up 24% to £9.7m (H1 2014: £7.8m)

·     Further reduction of net debt position to £13.9m (30 Sept 2014: net debt £16.1m)

·     Interim dividend increased by 50% to 2.25p (H1 2014: 1.50p)

 

R J Harrison OBE, Chairman said: "The Group's position as a leading provider of engineering support services to the UK's Energy, Environmental and Infrastructure markets has continued to strengthen by focusing on our clients' long term operational spending programmes.

 

"Our strategy has delivered excellent organic growth which, together with our record order book, provides the Board with confidence that the Group's results will meet market expectations for the full financial year."

 

Enquiries:

Renew Holdings plc

  Tel: 0113 281 4200

Brian May, Chief Executive

 

John Samuel, Group Finance Director

 

 

 

Numis Securities Limited

Tel: 020 7260 1000

Stuart Skinner (Nominated Adviser)

 

James Serjeant (Corporate Broker)

 

 

 

Walbrook PR

                      Tel: 020 7933 8780 or renew@walbrookpr.com

Paul McManus

Mob: 07980 541 893

Nick Rome

Mob:  07748 325 236

 

About Renew Holdings plc

 

Engineering Services, which accounts for over 80% of Group revenue and over 90% of operating profit, focuses on the key markets of Energy (including Nuclear), Environmental and Infrastructure, which are largely governed by regulation and benefit from non-discretionary spend with long-term visibility of committed funding.

 

Specialist Building focuses on the High Quality Residential market in London and the Home Counties.

 

For more information please visit the Renew Holdings plc website: www.renewholdings.com

 

Chairman's Statement

 

The first half of 2015 has seen the Group deliver record interim results again, achieving growth in both operating profit and revenue. This underlines the success of the Group's long term strategy of providing engineering services in regulated markets which benefit from established operational expenditure plans.

 

Results

 

Group operating profit, prior to amortisation, increased by 21% to £9.8m (2014: £8.1m), on revenue up 21% to £252.1m (2014: £207.6m). Operating margin was sustained at 3.9% with adjusted earnings per share increasing by 20% to 12.24p (2014: 10.23p). Profit before tax prior to amortisation increased by 19% to £9.5m (2014: £8.0m).

 

Engineering Services revenue grew by 24% to £209.8m (2014: £169.2m), representing 83% of Group revenue (2014: 82%). Operating profit prior to amortisation increased by 24% to £9.7m (2014: £7.8m) with operating margin maintained at 4.6%. Underlying organic growth of over 14% has been achieved.

 

In Specialist Building, the Board emphasises contract selectivity and risk management. The business is focused on the high quality residential market in London and the South East and delivered an operating profit of £1.0m (2014: £1.3m) on revenue of £42.5m (2014: £38.4m).

 

Dividend

 

In line with its progressive policy, the Board is increasing the interim dividend by 50% to 2.25p per share (2014: 1.50p) which will be paid on 6 July 2015 to shareholders on the register at 5 June 2015.

 

Order book

 

The Group's order book at 31 March 2015 increased by 28% to £471m (2014: £369m). When the contribution of acquisitions is eliminated, the organic increase was 15%. The Group's expected revenue for the second half of the financial year is fully secured.

 

Cash

 

At 31 March 2015, the Group had net debt of £13.9m (30 September 2014: £16.1m and 31 March 2014: cash of £8.1m). The debt is due to the two acquisitions made in the second half of last financial year.  The Board expects to reduce net debt further during the second half of the financial year.

 

Outlook

 

The Group has strengthened its position as a leading provider of engineering support services in the UK's Energy, Environmental and Infrastructure markets. We continue to focus on the long term operational spending programmes associated with the UK's existing key infrastructure assets, which provide good visibility of sustainable revenue.

 

It remains the Board's strategy to grow our Engineering Services business, both organically and through selective acquisitions. The excellent organic growth achieved in the first half together with our record order book gives the Board confidence that the Group will meet market expectations for the full financial year.  

 

R J Harrison OBE

Chairman

19 May 2015

 

Chief Executive's Review

 

Engineering Services

 

Renew continues to extend its position as a leading provider of engineering support services to the UK's critical infrastructure assets. The Group operates in the regulated Energy, Environmental and Infrastructure markets supporting the day to day operations of key assets including power plants, water and gas pipelines as well as the rail and wireless telecoms networks. Most of these markets have high barriers to entry.

 

Our multidisciplinary Engineering Services are delivered by our directly employed, highly skilled workforce through our local, independently branded businesses. We believe that this approach is an important ingredient of our success and a significant differentiator from our competitors. We continue to develop our client relationships through our responsiveness to their requirements.

 

During the first half of the year, Engineering Services revenue grew by 24% to £209.8m (2014: £169.2m). Engineering Services accounted for 83% (2014: 82%) of Group revenue. Operating profit prior to amortisation increased by 24% to £9.7m (2014: £7.8m) with operating margin maintained at 4.6%. Our target remains to grow this margin to 5% by 2017.

 

At 31 March 2015, the Engineering Services order book had increased by 25% to £382m (2014: £306m).

 

Energy

 

The majority of our work in Nuclear is at the Sellafield site in Cumbria, where we provide integrated engineering services as the largest mechanical and electrical contractor on site with 10 frameworks. Our work encompasses the long term care and maintenance of operational plant associated with waste treatment or reprocessing, decommissioning, demolition and clean-up of redundant facilities.

 

As part of the high hazard risk reduction operations at the site, work continued on the Evaporator Delta project. During the period, we have seen a substantialincrease in workload on the recently extended Multi Discipline Site Works framework, which runs to April 2017. This framework, where our participation focuses on Production Operations Support, is advertised to deliver £70m annually.

 

The Bulk Sludge Retrieval Facility framework has been extended for a further year and is progressing well on higher than anticipated volumes of work. Further framework extensions at Sellafield include the Bundling Spares and Site Remediation & Decommissioning Projects frameworks.

 

Work has been carried out for long standing client Westinghouse on the reactor outage at the Heysham nuclear power station and at Springfields where we are engaged in the delivery of a waste fuel processing facility.

 

Working nationally across 10 sites for Magnox, we were recently appointed as sole provider on the £30m Electrical, Controls & Instrumentation framework for 4 years with a 2 year extension option.

 

In the renewables sector, work is underway on a hydro scheme for Welsh Water at Tyn Y Waun, as part of the Hydro Generation Services framework. Recent awards include a Hydro Asset Upgrade scheme in the Scottish Highlands for SSE. We have also been reappointed to the maintenance framework at Deucheran Hill wind farm by E.ON.

 

Our activity in the gas sector is focused on the assets operated in the South East by National Grid and SGN. Work involves the renewal of mains under the HSE's 30/30 replacement programme. We are now seeing additional opportunities from the decommissioning and land remediation of gas holder sites that are surplus to operator requirements.

 

Environmental

 

In Water, we work for Northumbrian Water, Wessex Water and Welsh Water on a number of framework agreements.

 

For Northumbrian Water, significant awards in the period include the AMP6 Sewerage Repairs and Maintenance framework, as one of two suppliers, which is anticipated to deliver £14m of work annually over the 5 year term with a potential 5 year extension. The scope of this renewed framework has been extended to include additional works. We continue to work on the Major Waste Water, Clean Water and Maintenance and Trunk Mains Cleaning frameworks as well as on the accelerated flood alleviation workstreams.

 

During the period, in addition to work for Wessex Water under our Workstream framework, we have carried out several projects on the Wessex Integrated Grid. Welsh Water projects have included work under the Pressurised Pipeline framework and emergency reactive tasks.

 

Work for the Environment Agency is underway on the 4 year £10m MEICA framework for the Northern Region. This exclusive framework covers over 600 flood control and water management sites throughout the region. Our existing minor works frameworks for the Environment Agency have also been extended for a further 2 years.

 

The Group has extensive expertise in the renewal and refurbishment of moving structures. Good progress was made in the period on the £8m contract to refurbish the linkspans on the Woolwich Ferry for Transport for London.

 

Infrastructure

 

In Rail, we have seen strong levels of activity providing national off-track civil, mechanical and electrical engineering services to Network Rail, where we deliver planned and reactive infrastructure maintenance, refurbishment and renewal services as well as 24/7 emergency services to the national rail network.

 

Work has commenced for Network Rail on the 7 recently awarded Control Period 5 frameworks for Infrastructure Projects, which have an advertised value of £450m to 2019. In the period, work continued under the 6 Asset Management frameworks which are in the process of being extended until April 2017.

 

Following our success on the high profile repairs to the Great Western Main Line railway infrastructure at Dawlish, we have carried out a further £12m of sea defence works there during the period.

 

In the wireless telecoms market we provide engineering services to all of the UK's cellular network operators and major network equipment manufacturers through framework agreements. We have recently secured a major new infrastructure delivery framework for Telefonica which will see us undertake design, acquisition and site construction activity across their network in the North of England. 

 

Specialist Building

 

Specialist Building revenue was £42.5m (2014: £38.4m), generating operating profit of £1.0m (2014: £1.3m). Margins have returned to more normal levels following final account settlements in the comparative period. The forward order book has increased by 41% to £89m (2014: £63m).

 

The High Quality Residential market in London and the Home Counties remains robust. This was reflected in £54m of awards in the period for private client projects in Chelsea, Highgate and Belgravia. The Group's expertise in providing challenging structural engineering solutions continues to provide a differentiator in this market. To minimise risk, our work is procured predominately on a negotiated and two stage basis.

 

Strategy

 

The Board continues to pursue its strategy of developing our Engineering Services business through a combination of organic and acquisitive growth. We continue to look for earnings enhancing, complementary acquisitions to expand our range of services and markets.

 

Brian May

Chief Executive

19 May 2015

 

Group income statement

for the six months ended 31 March 2015

 

 

 

Before amortisation of intangible assets

 

Amortisation of intangible assets

(see Note 3)

 

Six months ended

31 March

Before exceptional items and amortisation of intangible assets

Exceptional items and amortisation of intangible assets

(see Note 3)

Year ended

30 September

 

 

2015

2015

2015

2014*

(Restated**)

2014

 

2014

 

2014

 

 

Note

 

Unaudited

£000

 

Unaudited

£000

 

Unaudited

£000

 

Unaudited

£000

Audited

£000

Audited

£000

 Audited

£000

Group revenue from continuing activities

2

252,148

-

252,148

207,557

464,474

-

464,474

Cost of sales

 

(219,527)

-

(219,527)

(182,783)

(411,413)

-

(411,413)

Gross profit

 

32,621

-

32,621

24,774

53,061

-

53,061

Administrative expenses

 

(22,816)

(1,749)

(24,565)

(17,418)

(36,623)

(3,055)

(39,678)

Operating profit

2

9,805

(1,749)

8,056

7,356

16,438

(3,055)

13,383

Finance income

 

124

-

124

74

182

-

182

Finance costs

 

(518)

-

(518)

(149)

(427)

-

(427)

Other finance income/(expense) - defined benefit pension schemes

 

 

49

-

49

(61)

(87)

-

(87)

Profit before income tax

2

9,460

(1,749)

7,711

7,220

16,106

(3,055)

13,051

Income tax expense

4

(1,931)

350

(1,581)

(1,565)

(3,325)

611

(2,714)

Profit for the period from continuing activities

 

7,529

(1,399)

6,130

5,655

12,781

(2,444)

10,337

Loss for the period from discontinued operation

3

 

 

-

(283)

 

 

(5,155)

Profit for the period attributable to equity holders of the parent company

 

 

 

6,130

5,372

 

 

5,182

 

 

 

 

 

 

 

 

 

Basic earnings per share from continuing activities

5

 

 

9.96p

9.31p

 

 

16.83p

Diluted earnings per share from continuing activities

5

 

 

9.84p

9.18p

 

 

16.59p

 

 

 

 

 

 

 

 

 

Basic earnings per share

5

 

 

9.96p

8.84p

 

 

8.44p

Diluted earnings per share

5

 

 

9.84p

8.72p

 

 

8.32p

 

 

 

 

 

 

 

 

 

Proposed dividend

6

 

 

2.25p

1.50p

 

 

5.00p

 

 

*Operating profit for the six months ended 31 March 2014 is after charging £750,000 of amortisation cost. (See Note 3)

** Comparative figures have been restated to reflect the reclassification of a discontinued business. Details are set out in Note 3.

 

Group statement of comprehensive income

for the six months ended 31 March 2015

 

Six months ended

Year ended

 

 

31 March

30 September

 

 

2015

2014

2014

 

 

Unaudited

Unaudited

Audited

 

 

£000

£000

 £000

Profit for the period attributable to equity holders of the parent company

 

6,130

5,372

5,182

Items that will not be reclassified to profit or loss:

 

 

 

 

Movement in actuarial valuation of the defined benefit pension schemes

 

-

-

1,068

Movement on deferred tax relating to the defined benefit pension schemes

 

-

-

(214)

Total items that will not be reclassified to profit or loss

 

-

-

854

Items that are or may be reclassified subsequently to profit or loss:

 

 

 

 

Exchange movement in reserves

 

261

(246)

1

Total items that are or may be reclassified subsequently to profit or loss

 

261

(246)

 

1

Total comprehensive income for the period attributable to equity holders of the parent company

 

6,391

5,126

 

6,037

 

 

Group statement of changes in equity

for the six months ended 31 March 2015

                       

Called up

Share

Capital

Cumulative

Share based

 

Total

 

share

premium

redemption

translation

payments

Retained

equity

 

capital

account

reserve

adjustment

reserve

earnings

Unaudited

 

£000

£000

£000

£000

£000

£000

£000

At 1 October 2013

6,140

5,893

3,896

751

390

(6,735)

10,335

Transfer from income statement for the period

 

 

 

 

 

5,372

5,372

Dividends paid

 

 

 

 

 

(1,538)

(1,538)

New shares issued

12

49

 

 

 

 

61

Recognition of share based payments

 

 

 

 

(187)

 

(187)

Exchange differences

 

 

 

(246)

 

 

(246)

At 31 March 2014

6,152

5,942

3,896

505

203

(2,901)

13,797

Transfer from income statement for the period

 

 

 

 

 

(190)

(190)

Dividends paid

 

 

 

 

 

(923)

(923)

Recognition of share based payments

 

 

 

 

89

 

89

Exchange differences

 

 

 

247

 

 

247

Actuarial gains recognised in pension schemes

 

 

 

 

 

1,068

1,068

Movement on deferred tax relating to the pension schemes

 

 

 

 

 

 

(214)

 

(214)

At 30 September 2014

6,152

5,942

3,896

752

292

(3,160)

13,874

Transfer from income statement for the period

 

 

 

 

 

6,130

6,130

Dividends paid

 

 

 

 

 

(2,153)

(2,153)

New shares issued

40

1,047

 

 

 

 

1,087

Recognition of share based payments

 

 

 

 

(85)

 

(85)

Exchange differences

 

 

 

261

 

 

261

At 31 March 2015

6,192

6,989

3,896

1,013

207

817

19,114

 

 

Group balance sheet

at 31 March 2015

 

 

          31 March

30 September

 

 

2015

2014

2014

 

 

Unaudited

Unaudited

Audited

 

 

£000

£000

 £000

Non-current assets

 

 

 

 

Intangible assets

 

 

 

 

- goodwill

 

53,286

33,060

53,286

- other

 

6,021

3,209

7,770

Property, plant and equipment

 

14,098

9,638

15,283

Retirement benefit assets

 

3,136

1,062

1,456

Deferred tax assets

 

2,941

2,819

2,741

 

 

79,482

49,788

80,536

Current assets

 

 

 

 

Inventories

 

4,559

2,920

4,068

Trade and other receivables

 

101,200

94,130

85,557

Assets held for resale

 

-

-

1,250

Cash and cash equivalents

 

4,705

8,123

5,586

 

 

110,464

105,173

96,461

 

 

 

 

 

Total assets

 

189,946

154,961

176,997

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

 

(12,400)

-

(15,500)

Obligations under finance leases

 

(2,831)

(1,779)

(3,575)

Retirement benefit obligations

 

-

(2,172)

-

Deferred tax liabilities

 

(1,883)

(1,036)

(1,749)

Provisions

 

(1,232)

(628)

(1,232)

 

 

(18,346)

(5,615)

(22,056)

Current liabilities

 

 

 

 

Borrowings

 

(6,200)

-

(6,200)

Trade and other payables

 

(142,733)

(131,860)

(131,041)

Obligations under finance leases

 

(2,519)

(2,410)

(2,764)

Current tax liabilities

 

(666)

(1,175)

(694)

Provisions

 

(368)

(104)

(368)

 

 

(152,486)

(135,549)

(141,067)

 

 

 

 

 

Total liabilities

 

(170,832)

(141,164)

(163,123)

 

 

 

 

 

Net assets

 

19,114

13,797

13,874

 

 

 

 

 

Share capital

 

6,192

6,152

6,152

Share premium account

 

6,989

5,942

5,942

Capital redemption reserve

 

3,896

3,896

3,896

Cumulative translation adjustment

 

1,013

505

752

Share based payments reserve

 

207

203

292

Retained earnings

 

817

(2,901)

(3,160)

Total equity

 

19,114

13,797

13,874

 

Group cashflow statement

for the six months ended 31 March 2015

 

     Six months ended     

Year ended 

 

       31 March

30 September

 

2015

2014

2014

 

 

(Restated**)

 

 

Unaudited

Unaudited

Audited

 

£000

£000

 £000

Profit for the period from continuing operations

6,130

5,655

10,337

Amortisation of intangible assets

1,749

750

2,231

Depreciation

2,152

1,145

2,893

Profit on sale of property, plant and equipment

(60)

(143)

(435)

Charge in respect of share option exercise

1,087

-

-

(Increase)/decrease in inventories

(355)

79

(323)

(Increase)/decrease in receivables

(15,215)

(19,690)

1,324

Increase in payables

11,678

24,125

9,630

Current service cost in respect of defined benefit pension scheme

29

29

59

Cash contribution to defined benefit schemes

(1,680)

(1,473)

(3,117)

Credit in respect of share options

(85)

(187)

(98)

Finance income

(124)

(74)

(182)

Finance costs and expense

469

210

514

Interest paid

(518)

(149)

(427)

Income taxes paid

(1,675)

(236)

(1,926)

Income tax expense

1,581

1,415

2,714

Net cash inflow from continuing operating activities

5,163

11,456

23,194

Net cash outflow from discontinued operating activities

(168)

(3,469)

(4,691)

Net cash inflow from operating activities

4,995

7,987

18,503

 

 

 

 

Investing activities

 

 

 

Interest received

124

74

182

Proceeds on disposal of property, plant and equipment

106

188

647

Purchases of property, plant and equipment

(585)

(545)

(1,559)

Disposal/(acquisition) of subsidiaries net of cash acquired

1,142

-

(32,132)

Net cash inflow/(outflow) from continuing investing activities

787

(283)

(32,862)

Net cash inflow/(outflow) from discontinued investing activities

168

               (55)

(106)

Net cash inflow/(outflow) from investing activities

955

            (338)

(32,968)

 

 

 

 

Financing activities

 

 

 

Dividends paid

(2,153)

(1,538)

(2,461)

Issue of Ordinary Shares

-

61

61

New loan

-

-

24,000

Loan repayments

(3,100)

(2,500)

(4,800)

Repayment of obligations under finance leases

(1,585)

(892)

(2,096)

Net cash (outflow)/inflow from financing activities

(6,838)

(4,869)

14,704

 

 

 

 

Net (decrease)/increase in continuing cash and cash equivalents

(888)

6,304

5,036

Net decrease in discontinued cash and cash equivalents

-

(3,524)

(4,797)

Net (decrease)/increase in cash and cash equivalents

(888)

2,780

239

 

 

 

 

Cash and cash equivalents at the beginning of the period

5,586

5,348

5,348

Effect of foreign exchange rate changes

7

(5)

(1)

Cash and cash equivalents at the end of the period

4,705

8,123

5,586

 

 

 

 

Bank balances and cash

4,705

8,123

5,586

 

NOTES TO THE ACCOUNTS

 

Note 1 - Basis of preparation

 

(a) The consolidated interim financial report for the six months ended 31 March 2015 and the equivalent period in 2014 have not been audited or reviewed by the Group's auditor. They do not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006. They have been prepared under the historical cost convention and on a going concern basis in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. This interim financial report does not comply with IAS34 "Interim Financial Reporting", which is not currently required to be applied for AIM companies.  This interim report was approved by the Directors on 19 May 2015.

                               

(b) The accounts for the year ended 30 September 2014 were prepared under IFRS and have been delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498(2) or (3) of the Companies Act 2006. In this report, the comparative figures for the year ended 30 September 2014 have been audited. The comparative figures for the period ended 31 March 2014 are unaudited.

 

(c) For the year ending 30 September 2015, there are no new accounting standards, which have been adopted by the EU, applied and implemented for this interim financial report.

 

(d) On 31 October 2014, Places for People Group Limited ("PFP") acquired 50% of the ordinary share capital of Allenbuild Ltd, a Specialist Building subsidiary.  Following the practical completion of a number of partly completed contracts, the benefit of which continues to accrue to the Group, PFP will acquire the remaining 50%.  This is expected to be at 31 January 2016.  Consequently, Allenbuild Ltd has been treated as a discontinued business.

 

(e) The Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. 

 

This interim statement is being sent to all shareholders and is also available upon request from the Company Secretary, Renew Holdings plc, Yew Trees, Main Street North, Aberford, West Yorkshire LS25 3AA, or via the website www.renewholdings.com.

 

 

Note 2 - Segmental analysis                                                                                                                                                                                                                                                                                      

Operating segments have been identified based on the internal reporting information provided to the Group's Chief Operating Decision Maker. From such information, Engineering Services and Specialist Building have been determined to represent operating segments.               

                                                                                                                               

                 Six months ended

                       31 March

Year ended

30 September

 

 

2015

2014

2014

 

 

 

(Restated**)

 

 

 

Unaudited

Unaudited

Audited

 

Revenue is analysed as follows:

£000

£000

 £000

 

 

 

 

 

 

Engineering Services

209,753

169,190

382,467

 

Specialist Building

42,477

38,367

82,112

 

Inter segment revenue

(82)

-

(105)

 

Segment revenue

252,148

207,557

464,474

 

Central activities

-

-

-

 

Group revenue from continuing operations

252,148

207,557

464,474

 

 

 

 

 

 

 

 

 

Before amortisation of intangible assets

2015

 

Unaudited

 

 

 

Amortisation of intangible assets

2015

 

Unaudited

Six months ended

31 March

Before exceptional items and

amortisation of intangible assets

2014

 

Audited

 

Exceptional items and

amortisation of intangible assets

2014

 

Audited

Year Ended

30 September

2014

 

Audited

 

2015

 

Unaudited

2014*

(Restated**)

Unaudited

 

£000

£000

£000

£000

£000

£000

£000

Analysis of operating  profit

 

 

 

 

 

 

 

 

Engineering Services

9,665

(1,749)

7,916

7,014

16,280

(2,231)

14,049

Specialist Building

1,046

-

1,046

1,345

2,157

-

2,157

Segment operating profit

10,711

(1,749)

8,962

8,359

18,437

(2,231)

16,206

Central activities

(906)

-

(906)

(1,003)

(1,999)

(824)

(2,823)

Operating profit

9,805

(1,749)

8,056

7,356

16,438

(3,055)

13,383

Net financing expense

    (345)

-

  (345)

(136)

(332)

-

(332)

Profit before income tax

9,460

(1,749)

7,711

7,220

16,106

(3,055)

13,051

                             

 

*Operating profit for the six months ended 31 March 2014 is after charging £750,000 of amortisation.

** Comparative figures have been restated to reflect the reclassification of a discontinued business.  Details are set out in Note3.

 

Note 3 - Exceptional items and amortisation of intangible assets

 

                   Six months ended

 

Year ended

 

                       31 March

 

30 September

 

2015

 

2014

 

2014

 

Unaudited

 

Unaudited

 

Audited

 

£000

 

£000

 

£000

Acquisition costs

-

 

-

 

824

Total costs arising from exceptional items

-

 

-

 

824

Amortisation of intangible assets

1,749

 

750

 

2,231

 

1,749

 

750

 

3,055

 

Discontinued operation analysis

 

Revenue                                                                                   19,343                      18,238                         49,992

Expenses

(19,343)

 

 (18,596)

 

(54,124)

Loss before income tax

-

 

    (358)

 

(4,132)

Income tax credit/(expense) - deferred tax

-

 

75

 

(1,023)

Loss for the period from discontinued operation

-

 

(283)

 

(5,155)

 

Note 4 - Income tax expense

 

 

Six months ended

Year ended

 

31 March

30 September

 

2015

2014

2014

 

 

(Restated**)

 

 

Unaudited

Unaudited

Audited

 

£000

£000

 £000

Current tax:

 

 

 

UK corporation tax on profits for the period

(1,646)

(1,258)

(2,265)

Adjustments in respect of previous periods

-

-

(227)

Total current tax

(1,646)

(1,258)

(2,492)

Deferred tax

65

(232)

(1,245)

Income tax expense

(1,581)

(1,490)

(3,737)

Deferred tax in respect of discontinued operation

-

(75)

1,023

Income tax in respect of continuing activities

(1,581)

(1,565)

(2,714)

 

 

 

Note 5 - Earnings per share                          

                                                              Six months ended 31 March

Year ended 30 September

 

 

 

2015

 

 

 

2014

 

 

 

2014

 

 

 

 

Unaudited

 

 

 

(Restated**)

Unaudited

 

 

 

Audited

 

 

Earnings

EPS

DEPS

 

Earnings

EPS

DEPS

 

Earnings

EPS

DEPS

 

£000

Pence

Pence

 

£000

Pence

Pence

 

£000

Pence

Pence

Earnings before exceptional items and amortisation

 

7,529

12.24

12.09

 

 

6,217

10.23

10.09

 

12,781

20.80

20.51

Exceptional items and amortisation

 (1,399)

(2.28)

(2.25)

 

 

(562)

(0.92)

(0.91)

 

(2,444)

(3.97)

(3.92)

asic earnings per share - continuing operations

 

6,130

9.96

9.84

 

 

5,655

9.31

9.18

 

10,337

16.83

16.59

Loss for the period from discontinued operation

 

-

  -

-

 

 

(283)

(0.47)

(0.46)

 

(5,155)

(8.39)

(8.27)

Basic earnings per share

6,130

9.96

9.84

 

5,372

8.84

8.72

 

5,182

      8.44

8.32

Weighted average number of shares

 

61,525

62,286

 

 

60,766

61,594

 

 

61,431

62,313

                                   

 

The dilutive effect of share options is to increase the number of shares by 761,000 (March 2014: 828,000; September 2014: 882,000) and reduce the basic earnings per share by 0.12p (March 2014: 0.12p; September 2014: 0.12p).  On 25 March 2015 400,000 new Ordinary shares of 10p each were issued following the exercise of share options bringing the total number in issue to 61,917,948.

 

Note 6 - Dividends                        

                               

The proposed interim dividend is 2.25p per share (2014: 1.50p).  This will be paid out of the Company's available distributable reserves to shareholders on the register on 5 June 2015, payable on 6 July 2015. In accordance with IAS 1, dividends are recorded only when paid and are shown as a movement in equity rather than as a charge in the income statement.


This information is provided by RNS
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