Interim Results

RNS Number : 4976L
Smart Metering Systems PLC
05 September 2012
 



05 September 2012

Smart Metering Systems plc

("SMS" or "the Company")

 

Interim Results for the six months ended 30 June 2012

 

 

Smart Metering Systems plc (AIM: SMS.L) is pleased to announce its interim results which show a strong trading performance for the six months ended 30 June 2012 and a maiden dividend to shareholders.

 

Financial Highlights

 

·      Revenue increased by 25% to £9.3m (H1 2011:£7.4m)

·      Recurring meter rental increased by 39% to £4.2m (H1 2011: £3.0m)

·      Gross Profit increased by 53% to £5.8m (H1 2011:£3.8m)

·      EBITDA* increased by 66% to £4m (H1 2011:£2.4m)

·      PBT* increased by 88% to £2.9m (H1 2011:£1.5m)

·      Basic earnings per share increased by 46% to 2.6p (H1 2011:1.78p)

·      Maiden dividend of 0.5p per ordinary share

*Excluding exceptional items and fair value adjustments

 

Operational Highlights

 

 

·      Total meter portfolio increased by 25% to 283,275 (H1 2011: 227,517)

·      Increase of 51% in capital investment in meter assets to £5.9m (H1 2011: £3.9m), bringing the total to £26.4m

·      Increase in annualised recurring revenue of 38% to £9.1m (H1 2011: £6.6m)

·      Significant new contracts announced

·      Gas Suppliers

§  Scottish and Southern Energy (SSE) : c180,000 domestic meters

§  Total Gas and Power (TGP) : Initial Quantity of 15,000 I & C meters and ADM™ devices

§  Contract Natural Gas (CNG) : Initial Quantity of 1475 I&C meters and ADM™ devices with exclusive arrangement to the balance of their portfolio estimated at over 20,000 I&C meters

·      Energy Brokers; providers of brokerage services to small medium and large group consumers

§  BIU, Solis, Energi, Imserve and ISS for ADM™ devices and gas meters

·      Trials commenced in the Water and LPG markets in the UK for the ADM™ device

 

Post balance Sheet Events

 

·      New banking club arrangement announced on 2 August 2012 for £45m with Barclays Bank PLC (lead bank), Clydesdale Bank PLC and Lloyds Bank PLC, replacing all existing facilities

·      Received Full European Patent Approval for the ADM™ device effective 15 August 2012

·      Total portfolio increased to 296,000 at 31 Aug 2012 with a corresponding annualised recurring rental increase to £9.65m

·      New contract with DONG Energy Sales Limited (formerly Shell Gas Direct) announced on 30 August. This contract includes the provision of ADM™.

 

Alan Foy, Chief Executive Officer, commented: "SMS has had another strong trading period, with significant new contracts in both the domestic and I & C markets in addition to our first sales of the ADM™ device , enhanced by securing banking facilities to support our plans. We look forward to the future with confidence which underpins our decision to  announce our maiden dividend to shareholders."

 

For Further Information:

Smart Metering Systems plc

Alan Foy, Chief Executive Officer

Glen Murray, Finance Director

 

0141 249 3850

Cenkos Securities

Ken Fleming

Jon Fitzpatrick

 

0131 220 6939 / 0207 397 8900

Kreab Gavin Anderson

Ken Cronin

Anthony Hughes

020 7074 1800

 

Notes to Editors

About Smart Metering Systems

Established in 1995, Smart Metering Systems plc based in Glasgow, connects, owns, operates and maintains metering systems and databases on behalf of major energy companies. 

 

Currently the Company is concentrating its efforts on offering its unique integrated services to the UK industrial and commercial gas market in which its customers have an 80% market share.

 

The Company has further applications for gas with its ADM™ device which allows "smart" functions such as remote reading and half hourly consumption data to be offered to customers in addition to the normal metering services. Longer term the Company also has additional applications for water and LPG.

 

The Company was admitted to the AiM market in July 2011 and is now part of the FTSE AiM 50 index, for more information on SMS please visit the Company's website: www.sms-plc.com

 

 

Chairman's and Chief Executive Officer's Statement

 

We are delighted to announce strong trading in the first six months of 2012. During the period, the Company's performance benefited from the full impact of meters that were installed last year and as a result, growth in profitability outstripped portfolio growth in the first half of the current year. 

 

Operational Review

 

As stated at the time of our 2011 annual results, our core focus is on gas meters in the UK where we aim to:

 

·      be market leader in the independent ownership of I & C meters;

·      establish ADM™ as the industry standard smart metering solution for I & C clients; and

·      grow our domestic meters business organically and potentially through new contracts

 

During the period we have made substantial progress in all three areas, leading to a 25% increase in our gas meter portfolio, an increase in annualised recurring revenue of 38% to £9.1m and the first sales of our ADM™ device.

 

Industrial and Commercial meters

 

During the period we were delighted to announce two major new contracts for the provision of gas meters within the I & C market with Contract Natural Gas (CNG) and Total Gas & Power Limited (TGP). The run rates for both contracts are currently being established but current estimates are for a combined programme in excess of 16,475 meters ( TGP and CNG initial quantity combined) over a three year period.

 

In addition, SMS has also contracted with five energy brokers who provide brokerage and energy management services to small, medium and large group consumers for the provision of the ADM™ device and gas meters.

 

Once installed these meters will be on SMS's long term index linked contracts.

 

The importance of this market to SMS is underlined by the fact that, given the greater revenue that is generated from the provision of I & C meters, the equivalent number of domestic meters for these contracts would be in the order of 250,000.

 

UK Gas Connections continues to be cash generative and secure gas meter ownership for the group, it has performed in-line with management expectations.

 

ADM™

 

The I & C market provides SMS with a significant opportunity because of the combination of  the full service capability of its meter asset management division and the now proven automated meter reading solution provided by the ADM™ device. This has been demonstrated by the fact that the TGP and CNG contracts, include installing the device as part of the meter replacement programme. This is providing SMS with an important market leading advantage and an additional source of income.

 

The large I & C market (estimated at greater than 300,000) has to move to an advanced metering solution of which around 60,000 of the very large category have to be completed or contracted to be completed by 2014.

 

The small I & C market (estimated by SMS at over 1.2m meters), has until 2014  to either opt for an advanced metering solution such as the ADM™ device or alternatively they can be included in the government's proposed domestic roll out of smart meters.

 

SMS believes that both market segments will find the ADM™ device an attractive solution, based on its competitive price and ease of installation.

 

In addition to the two new gas supplier clients and five new energy broker clients signed up to the ADM™ device and gas meters during the period' trials continue with a number of other potential customers. Since the period end, we have also recently announced a new contract with DONG Energy Sales Limited (Formerly Shell Gas Direct) for the provision of meter services and sales of the ADM™ device. The Company also continues to progress the potential use of the ADM™ device in other sectors such as the UK's water and LPG industries where trials have commenced.

 

Domestic Meters

 

In May, SMS was contracted by SSE to provide Meter Operations Services in all regions outside of Scotland and the South East of England for two years. The service provision includes the installation, commissioning, testing, repair, maintenance and removal and/or replacement of metering equipment under similar contractual provisions already in place for SMS's current meter portfolio. The current estimate is that this will add a further c180,000 units to the SMS meter portfolio over the lifetime of the contract. This new agreement replaced an agreement SSE have had with the market leader in the domestic asset management business and marks a deepening of SMS' relationship with SSE.

 

 

Financial Review

 

In the first half of 2012, the Company increased revenue by 25% to £9.3m over the same period last year. This was as a result of increasing meters under ownership and management and the time lag effect of full revenue recognition in H1 2012 of meters installed in 2011. In addition, as a result of our index linked contracts, revenues were boosted by  the contracted annual RPI increase. Recurring revenue, in line with the Company's strategy, increased from 40% of the total in the first half of 2011 to 45% in the same period in 2012, which compares favourably to 41% for the entirety of 2011.

 

Administration expenses, at £2.6m (excluding exceptional costs) were up 35% compared to the first half of 2011, substantially due to investment in staff numbers which have increased from 47 to 68 in line with the growth of the Company and its listed status, and increased depreciation due to the increased meter base held by the Company.

 

Finance costs decreased marginally from £326k to £318k due to lower outstanding debt in the period, with the majority of our investment in meter assets being funded from IPO proceeds.

 

Profit before tax increased from £1.5m to £2.5m and profit after tax from £1.2m to £2.2m.  Net debt decreased to £6.3m (H1 2011:£10.1m) and net debt/EBITDA* ratio 0.78.

 

As at 30 June 2012, the Company had debt of £10.5m compared to £11.4m in the first half of 2011, cash balances of £4.2m (2011 £1.3m), unused facilities of £7.5m and gearing of 43% (398% H1 2011)

 

On 2 August 2012, SMS announced a new banking club arrangement with three major UK banks. The £45 million facility with Barclays Bank PLC (lead bank), Clydesdale Bank PLC and  Lloyds Bank PLC replaced the existing arrangement with Clydesdale Bank PLC. SMS intends to use the new facility to fund the purchase of meter assets during a phased installation over the course of the next 24 months in line with the recent substantial contract wins. Interest is paid quarterly at 2.9% plus 3 month rolling LIBOR on the outstanding balance with drawn funds repaid equally over 10 years. 1.45% is paid on undrawn funds. SMS has entered into a hedge arrangement to swap 3 month rolling LIBOR, currently at c.0.7%, to a fixed 0.90-0.92% over 4 years for c.70% of the facility.

Capital investment in meters was £5.9m in the first half compared to £3.9m in H1 2011.

 

(*Excluding exceptional items and fair value adjustments)

 

Dividend

 

At the time of our admission to AiM, we stated that we intended to adopt a dividend policy that will take account of the Group's profitability, underlying growth prospects and availability of cash and distributable reserves, while maintaining an appropriate level of dividend cover.

 

SMS is therefore delighted to announce its maiden cash dividend to shareholders. An interim dividend of 0.5 pence per ordinary share will be paid on 22 November 2012 to those shareholders on the register (record date) on 19 October 2012 with an ex-dividend date of 17 October 2012.

 

In line with our dividend policy it is the intention of the Board to also pay a final dividend for the current year which will be announced at the time of the preliminary results in April 2013.

 

 

Outlook

 

SMS has continued to make significant progress against its core objectives, with recent contract wins (SSE, Total and CNG) prospectively adding the equivalent of 430,000 domestic meters. Further new clients, positive progress in the trialling of the Group's smart meter technology and new banking arrangements have underpinned the growth of the business. The board continues to look to the future with optimism.

 

SMS plc

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2012

 

 

 

 

 

 

6 Months ended

6 Months ended

Year ended

 

 

 

 

 

30 June 2012

30 June 2011

31 December 2011

 

 

 

 

 

Unaudited

Unaudited

Audited

 

 

 

 

 

£'000

£'000

£'000

 

 

 

 

 

 

 

 

REVENUE

 

 

 

 

9,272

7,391

15,964

Cost of sales

 

 

 

(3,517)

(3,625)

(7,109)

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

5,755

3,766

8,855

 

 

 

 

 

 

 

 

Administrative expenses

 

 

(2,922)

(1,906)

(5,050)

 

 

 

 

 

 

 

 

PROFIT FROM OPERATIONS

 

 

2,833

1,860

3,805

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

Operating profit before exceptional items

 

3,184

1,860

4,482

Exceptional items and fair value adjustments

(351)

                     -

(677)

 

 

 

 

 

 

 

 

Finance costs

 

 

 

(318)

(326)

(535)

Finance income

 

 

 

23

             -

41

 

 

 

 

 

 

 

 

PROFIT BEFORE TAXATION

 

 

2,538

1,534

3,311

Taxation

 

 

 

 

(370)

(344)

(1,121)

 

 

 

 

 

 

 

 

PROFIT FOR THE YEAR

 

 

 

 

 

ATTRIBUTABLE TO EQUITY HOLDERS

 

2,168

1,190

2,190

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

             -

                     -

-

 

 

 

 

 

 

 

 

Total comprehensive income

 

 

2,168

1,190

2,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic (pence)

 

2.60

1.78

2.93

 

 

 

 

 

 

 

 

Earnings per share - diluted (pence)

 

2.53

1.78

2.90

 

 

 

 

 

 

 

 

 



 

SMS plc

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2012

 

 

 

 

 

 

30 June 2012

30 June 2011

31 December 2011

 

 

 

 

 

Unaudited

Unaudited

Audited

 

 

 

 

 

£'000

£'000

£'000

ASSETS

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

Intangible assets

 

 

 

1,890

1,948

1,885

Property, plant and equipment

 

 

26,602

16,463

21,327

 

 

 

 

 

28,492

18,411

23,212

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Inventories

 

 

 

227

9

83

Trade & other receivables

 

 

2,428

2,679

1,606

Cash and cash equivalents

 

 

4,233

1,269

7,317

Other current financial assets

 

 

7

56

18

 

 

 

 

 

6,895

4,013

9,024

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

35,387

22,424

32,236

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

 

7,747

7,146

6,379

Bank loans and overdrafts

 

 

1,348

1,174

1,328

Obligations under hire purchase agreements

4

 -

3

Other current financial liabilities

 

361

205

339

 

 

 

 

 

9,460

8,525

8,049

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

Bank loans

 

 

 

9,152

10,199

9,845

Obligations under hire purchase agreements

11

 -

13

Deferred tax liabilities

 

 

2,023

1,163

1,873

 

 

 

 

 

11,186

11,362

11,731

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

20,646

19,887

19,780

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

14,741

2,537

12,456

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Share capital

 

 

 

833

666

833

Share premium

 

 

 

8,653

 -

8,653

Other reserves

 

 

 

1

1

1

Retained earnings

 

 

 

5,254

1,870

2,969

 

 

 

 

 

 

 

 

TOTAL EQUITY ATTRIBUTABLE TO

 

 

 

 

EQUITY HOLDERS OF THE PARENT COMPANY

14,741

2,537

12,456

 

 

 

 

 

 

 

 

 

 

 

SMS plc

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE PERIOD ENDED 30 JUNE 2012

 

 

 

 

 

Share

Share

Other

Retained

 

 

 

 

 

capital

premium

reserve

earnings

Total

 

 

 

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

Attributable to owners of the parent

 

 

 

 

 

company:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 1 July 2011

 

 

      666

-

1

1,870

2,537

 

 

 

 

 

 

 

 

 

Profit for period

 

 

          -

      -

          -

1,000

1,000

 

 

 

 

 

 

 

 

 

Transactions with owners in their

 

 

 

 

 

capacity as owners:

 

 

 

 

 

 

Shares issued

 

 

167

9,833

-

-

10,000

Share issue costs

 

 

-

(1,180)

-

-

(1,180)

Share options

 

 

-

-

-

99

99

 

 

 

 

 

 

 

 

 

Balance as at 31 December 2011

833

8,653

1

2,969

12,456

 

 

 

 

 

 

 

 

 

Profit for period

 

 

-

-

-

2,168

2,168

 

 

 

 

 

 

 

 

 

Transactions with owners in their

 

 

 

 

 

capacity as owners:

 

 

 

 

 

 

Share options

 

 

-

-

-

117

117

 

 

 

 

 

 

 

 

 

Balance as at 30 June 2012

 

833

8,653

1

5,254

14,741

 

 

 

 

 

 

 

 

 

 



 

SMS plc

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2012

 

 

30 June 2012

30 June 2011

31 December 2011

 

Unaudited

Unaudited

Audited

 

£'000

£'000

£'000

 

 

 

 

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

Profit before taxation

2,538

1,534

3,311

Finance costs

318

326

535

Finance income

(23)

-

(41)

Fair value movements on derivatives

33

-

249

Depreciation

678

416

956

Amortisation

118

118

234

Share based payment expense

117

-

99

Increase in inventories

(144)

(9)

(83)

(Increase)/decrease in trade & other receivables

(822)

(1,515)

(438)

Increase in Trade & other payables

1,148

1,150

128

 

 

 

 

CASH USED IN OPERATIONS

3,961

2,020

4,950

 

 

 

 

Taxation

           -

-

-

 

 

 

 

NET CASH USED IN OPERATIONS

3,961

2,020

4,950

 

 

 

 

INVESTING ACTIVITIES

 

 

 

Payments to acquire property, plant and equipment

(5,953)

(3,938)

(9,332)

Disposal of fixed asset investment

           -

-

180

Payment to acquire intangible assets

(123)

(334)

(388)

Finance income

23

-

41

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

(6,053)

(4,272)

(9,499)

 

 

 

 

FINANCING ACTIVITIES

 

 

 

Net proceeds from new borrowings less capital repaid

(673)

2,128

1,937

Net outflow from other long term creditors

(1)

(3)

-

Finance costs

(318)

(248)

(535)

Net proceeds from share issue

           -

 -

8,820

Dividends paid

           -

(180)

(180)

 

 

 

 

NET CASH GENERATED FROM FINANCING

 

 

 

ACTIVITIES

(992)

1,697

10,042

 

 

 

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

(3,084)

(555)

5,493

 

 

 

 

Cash and cash equivalents at the beginning of the period

7,317

1,824

1,824

 

 

 

 

Cash and cash equivalents at the end of the period

4,233

1,269

7,317

 

 

 

 



 

SMS plc                                                                       

Notes to the accounts                                                                       

1          Basis of preparation and accounting policies                        

            Basis of preparation

The Group's half yearly financial report consolidates the results of the company and its subsidiary undertakings made up to 30 June 2012. The company is a limited liability company incorporated and domiciled in Scotland and whose shares are quoted on AIM, a market operated by The London Stock Exchange.

 

The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. It does not therefore include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 December 2011.

 

The financial information for the 6 months ended 30 June 2012 is also unaudited.

 

The Group's statutory accounts for the year ended 31 December 2011 have been delivered to the Registrar of Companies. The report of the auditors on these accounts was unqualified and did not contain a statement under Section 498 of the Companies Act 2006.

 

The financial statements have been prepared on a going concern basis which the directors believe is appropriate for the following reason:

 

The directors have prepared cashflow forecasts which show the Group expects to meet its liabilities as they fall due for a period in excess of 12 months from the date of these financial statements. Our forecasts show continued capital investment which is funded from retained profits and external finance. On 2 August 2012 the Group announced a new £45m banking facility, providing investment capital for the next two years.

                       

            Significant accounting policies

The accounting policies used in the preparation of the financial information for the six months           ended 30 June 2012 are in accordance with the recognition and measurement criteria of International Financial Reporting Standards ('IFRS') as adopted by the European Union and are consistent with those which will be adopted in the annual statutory financial statements for the year ended 31 December 2012.           

                       

2          Segmental Reporting

                                                           

For management purposes, the Group is organised into two core divisions, management of assets and installation of meters, which form the basis of the Group's reportable operating segments. Operating segments within those divisions are combined on the basis of their similar long term economic characteristics and similar nature of their products and services, as follows:      

 

The management of assets comprises regulated management of gas meters and ADM units within the UK.    

The installation of meters comprises the installation of domestic and industrial & commercial gas meters throughout the UK.                                                       

Management monitors the operating results of its divisions separately for the purpose of making decisions about resource allocation and performance assessment. The operating segments disclosed in the financial statements are the same as reported to the Board. Segment performance is evaluated based on gross profit or loss excluding operating costs not reported by segment, depreciation, amortisation of intangible assets and exceptional items.

The following tables' present information regarding the Group's reportable segments for the six months ended 30 June 2012, six months ended 30 June 2011 and the year ended 31 December 2011.

SMS plc

 

Notes to the accounts (cont.)

 

 

 

2

Segmental Reporting (continued)


Asset

Asset


Total






management

installation

Unallocated

operations


30 June 2012




£000's

£000's

£000's

£000's











Segment revenue




4,189

5,083

-

9,272


Operating costs




(989)

(2,528)

-

(3,517)


Segment profit - group gross profit


3,200

2,555

-

5,755











Items not reported by segment







Other operating costs



                    -

-

(1,775)

(1,775)


Depreciation




(647)

-

(31)

(678)


Amortisation




(118)

-

               -

(118)


Exceptional items




-

-

(351)

(351)




















Group operating profit after amortisation and

2,435

2,555

(2,157)

2,833


exceptional items









Net finance costs




-

-

(295)

(295)











Profit before tax




2,435

2,555

(2,452)

2,538


Tax expense







(370)











Profit for year







2,168










































Asset

Asset


Total






management

installation

Unallocated

operations


30 June 2011




£000's

£000's

£000's

£000's











Segment revenue




3,018

4,373

-

7,391


Operating costs




(1,011)

(2,614)

-

(3,625)


Segment profit - group gross profit


2,007

1,759

-

3,766











Items not reported by segment







Other operating costs



-

-

(1,372)

(1,372)


Depreciation




(397)

-

(19)

(416)


Amortisation




(118)

-

-

(118)











Group operating profit after amortisation and





exceptional items




1,492

1,759

(1,391)

1,860


Net finance costs




-

-

(326)

(326)











Profit before tax




1,492

1,759

(1,717)

1,534


Tax expense







(344)











Profit for year







1,190










 

 

SMS plc

Notes to the accounts (cont.)

 

 

2

Segmental Reporting (continued)


Asset

Asset


Total






management

installation

Unallocated

operations


31 December 2011




£000's

£000's

£000's

£000's











Segment revenue




6,614

9,350

-

15,964


Operating costs




(1,973)

(5,136)

-

(7,109)


Segment profit - group gross profit


4,641

4,214

-

8,855











Items not reported by segment







Other operating costs



-

-

(3,182)

(3,182)


Depreciation




(918)

-

(38)

(956)


Amortisation




(235)

-

-

(235)


Exceptional items




-

-

(677)

(677)











Group operating profit after amortisation and





exceptional items




3,488

4,214

(3,897)

3,805


Net finance costs




-

-

(494)

(494)











Profit before tax




3,488

4,214

(4,391)

3,311


Tax expense







(1,121)











Profit for year







2,190










 


All revenues and operations are based and generated in the UK.




















The Group has one major customer that generated turnover within each segment as listed below:






















6 Months ended

6 Months ended

Year ended






30 June 2012

30 June 2011

31 December 2011






Unaudited

Unaudited

Audited






£'000

£'000

£'000










Asset management




2,530

2,034

4,380


Asset installation




1,899

1,053

2,860






4,429

3,087

7,240











 

SMS plc

Notes to the accounts (cont.)

 

 

2

Segmental Reporting (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

No segmentation is presented for the majority of Group assets and liabilities as these are managed centrally,

 

independently of operating segments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Those assets and liabilities that are managed and reported on a segmental basis are detailed below.

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset

Asset

Total

 

 

 

 

 

management

installation

operations

 

30 June 2012

 

 

 

£000's

£000's

£000's

 

 

 

 

 

 

 

 

 

Assets reported by segment

 

 

 

 

 

Intangible assets

 

 

 

1,890

-

1,890

 

Plant & machinery

 

 

 

26,401

-

26,401

 

Inventories

 

 

 

227

-

227

 

 

 

 

 

28,518

-

28,518

 

Assets not reported by segment

 

 

 

6,869

 

Total assets

 

 

 

 

 

35,387

 

 

 

 

 

 

 

 

 

Liabilities reported by segment

 

 

 

 

 

Obligations under hire purchase agreements

15

-

15

 

 

 

 

 

15

-

15

 

Liabilities not reported by segment

 

 

 

20,631

 

Total liabilities

 

 

 

 

 

20,646

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset

Asset

Total

 

 

 

 

 

management

installation

Operations

 

30 June 2011

 

 

 

£000's

£000's

£000's

 

 

 

 

 

 

 

 

 

Assets reported by segment

 

 

 

 

 

Intangible assets

 

 

 

1,948

-

1,948

 

Plant & machinery

 

 

 

16,463

-

16,463

 

Inventories

 

 

 

                     9

-

9

 

 

 

 

 

18,420

-

18,420

 

Assets not reported by segment

 

 

 

4,004

 

Total assets

 

 

 

 

 

 22,424

 

 

 

 

 

 

 

 

 

Liabilities reported by segment

 

 

 

 

 

Obligations under hire purchase agreements

-

-

-

 

 

 

 

 

-

-

-

 

Liabilities not reported by segment

 

 

 

19,887

 

Total liabilities

 

 

 

 

 

19,887

 

 

 

 

 

 

 

 



 

SMS plc

Notes to the accounts (cont.)

 

 

2

Segmental Reporting (continued)

 

 

 

 

 

 

 

 

 

Asset

Asset

Total

 

 

 

 

 

management

installation

operations

 

31 December 2012

 

 

 

£000's

£000's

£000's

 

 

 

 

 

 

 

 

 

Assets reported by segment

 

 

 

 

 

Intangible assets

 

 

 

1,885

-

1,885

 

Plant & machinery

 

 

 

21,125

-

21,125

 

Inventories

 

 

 

83

-

83

 

 

 

 

 

23,093

-

23,093

 

Assets not reported by segment

 

 

 

 9,143

 

Total assets

 

 

 

 

 

32,236

 

 

 

 

 

 

 

 

 

Liabilities reported by segment

 

 

 

 

 

Obligations under hire purchase agreements

16

-

16

 

 

 

 

 

16

-

16

 

Liabilities not reported by segment

 

 

 

19,764

 

Total liabilities

 

 

 

 

 

19,780

 

 

 

 

 

 

 

 

3

Earnings per share

 

 

 

6 Months to

6 Months to

Year to

 

 

 

 

 

30 June

30 June

31 December

 

 

 

 

 

2012

2011

2011

 

 

 

 

 

£000's

£000's

£000's

 

 

 

 

 

 

 

 

 

Profit for year used for calculation of basic EPS

2,168

1,190

2,190

 

Amortisation of intangible assets

 

118

118

235

 

Exceptional costs

 

 

 

351

-

677

 

Tax effect of adjustments

 

 

(113)

-

(92)

 

Earnings for the purpose of adjusted EPS

 

2,524

1,308

3,010

 

 

 

 

 

 

 

 

 

Number of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares for the

 

 

 

 

purpose of calculating basic EPS

 

 

83,339,747

66,673,080

74,709,610

 

 

 

 

 

 

 

 

 

Effect of potentially dilutive ordinary shares:

 

 

 

 

 - share options

 

 

 

2,341,953

 -

728,577

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares for

 

 

 

 

the purpose of diluted EPS

 

 

85,681,700

66,673,080

75,438,187

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 - basic (pence)

 

 

 

2.60

1.78

2.93

 

 - diluted (pence)

 

 

 

2.53

1.78

2.90

 

 

 

 

 

 

 

 

 

Adjusted earnings per share:

 

 

 

 

 

 

 - basic (pence)

 

 

 

3.03

1.96

4.03

 

 - diluted (pence)

 

 

 

2.95

1.96

3.99

 

 

 

 

 

 

 

 

 

The Directors consider that the adjusted earnings per share calculation gives a better understanding of the

 

Group's earnings per share.

 

 

 

 

 

SMS plc

Notes to the accounts (cont.)

                                                           

4          Events after the Reporting Period                                        

On 2 August 2012 the Group announced a new banking club arrangement.

The new £45m revolver facility is available for 24 months, repayable over 10 years, with a 5 year break.  It replaces the previous facility of £19.5m.

5

Dividend

 

 

 

6 Months to

6 Months to

Year to

 

 

 

 

 

30 June

30 June

31 December

 

 

 

 

 

2012

2011

2011

 

 

 

 

 

£000's

£000's

£000's

 

 

 

 

 

 

 

 

 

Dividend on equity shares

 

 

-

-

180

 

 

 

 

 

 

 

 

 

After 30 June the directors have approved an interim dividend of 0.5 pence per share for the year ending 31 December 2012, which has not been accrued as a liability as at 30 June 2012 in accordance with IAS 8. The dividend will be paid on 22 November 2012 with an ex-dividend date of 17 October 2012 and a record date of 19 October 2012.

 

 

 

6          The half yearly financial report was approved by the Board of Directors on 04 September 2012.

           

7          A copy of this half yearly financial report is available from the Company's Registered Office or by visiting our website at www.sms-plc.com.                                


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