Interim Results

RNS Number : 7351C

Plastics Capital PLC

19 November 2009

 



For Immediate Release

19 November 2009

Plastics Capital plc

Interim Results for six months ended 30 September 2009

Plastics Capital plc (AIM: PLA; "Plastics Capital" the "Company" or the "Group") the consolidator of niche plastics products manufacturers, today announces its interim results for the six months ended 30 September 2009. 

The financial information has been prepared using International Financial Reporting Standards as adopted by the EU ("IFRS").

Financial highlights

There have been extreme global economic conditions over the last 12-18 months. The table below demonstrates that the results for the last six months show a trend of improved performance in comparison to the six months ended 31 March 2009.

	Six months ended 30 September 2009 £000	% Change	Six months ended 31 March 2009 £000	%  Change	Six months ended 30 September 2008** £000
Revenue	12,883	-3.0%	13,280	-10.9%	14,905
Gross Profit	5,218	+20.4%	4,335	-25.6%	5,830
EBITDA excluding exceptionals	2,631	+8.4%	2,427	-10.3%	2,706
Profit before tax*	1,546	+475%	269	-84.5%	1,738
Profit after tax*	1,331	+21.3%	1,097	-31.7%	1,606
Adjusted EPS***	4.9p	+21.3%	4.1p	-31.7%	6.0p

* Excluding amortisation, exceptionals, unrealised foreign exchange & derivative gains/losses

** A reconciliation to the consolidated income statement is shown in note 2

*** Based on 26.95m shares currently in issue

Operational highlights

• Final stage of cost rationalisation completed in first quarter
• Volumes starting to recover from low point in first half calendar 2009
• International sales leading recovery - now representing 62% of total
• Sterling weakness boosting revenue, margins and competitiveness
• Strong profitability rebound from prior six month period
• Strong cash flow with net debt reduced by £1.5m in first half

Commenting on these results, Faisal Rahmatallah, Executive Chairman, said:

"Although trading conditions have been extremely challenging, these interim results demonstrate how well the Group has responded.  Volumes have started to turn upwards and profitability has improved as a result of cost reductions and the weakness of sterling. Our current focus is to take advantage of sterling's weakness, to drive product innovation and to expand sales representation geographically in order to generate organic growth as global economic conditions recover. The Board is confident of further progress in the second half year."

Plastics Capital plc Faisal Rahmatallah, Executive Chairman Nick Ball, Finance Director	Tel: [phone]
Cenkos Securities Stephen Keys Beth McKiernan	Tel: [phone]
Buchanan Communications Richard Darby Christian Goodbody	Tel: [phone]

Notes to Editors

Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets. The Group has four factories in the UK, one in Thailand and sales offices in the USA and Japan. Approximately 60 per cent of sales are exported to over 70 countries worldwide. Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness. The Group has approximately 285 employees. 

Further information can be found on www.plasticscapital.com

  CHAIRMAN'S STATEMENT

Introduction

We are pleased to present our interim results for the six months ended 30 September 2009.  

As previously reported we have compared these interim results for financial year 2010 to the same period last year. However, the 2009 financial year comprised two distinctly different halves - up to September 2008, when recessionary conditions were mild and thereafter to March 2009, when the global economy went into severe recession. For this reason and because there is relatively little seasonality in our trading, it is relevant to compare the 2010 interims against both these periods.

Financial Review

Overall performance for the six months ended 30 September 2009 is in line with our expectations.

Compared to the same period last year, the Group has achieved similar levels of earnings before interest, tax depreciation and amortisation (EBITDA) and profit before tax (PBT), despite suffering a 14% reduction in turnover due to the global economic downturn. Compared to the immediate prior six month period, the Group has improved EBITDA by 8% and PBT by 475%, on turnover down by 3%.  

The strong rebound in profitability results primarily from two factors; firstly, cost reductions that were commenced in the second half of last year and completed in the first quarter of this financial year and, secondly, sterling's weakness - although sterling started to weaken during the last financial year we were hedged and consequently saw no benefit. However in the current year the full benefit has come through.

Sales and demand levels have started to show recovery during the first half of 2010. It is not yet apparent in these results, partly because of timing and partly because we have seen raw material price deflation in certain areas, which has generally been passed on to customers and this masks volume recovery overall.

Of significance is our net debt which has reduced by £1.5m during the first half year. Cash flow has been strong and we have also incurred a small unrealised translation gain on our euro denominated debt.

Significant Developments

All four subsidiaries have completed some significant developments.

Our hose mandrel business, Bell, has made some excellent progress.  Firstly, Bell has moved to new premises in Poole. This was completed with minimum disruption to customers and within budgeted costs and timescale. The current factory provides a superior working environment and additional space both to improve existing operations and to add additional capacity as and when needed. Secondly, Bell has widened its product range successfully to include various thermoplastic elastomers and secured significant new business in the half year as a result. Finally, Bell has been busy prospecting in India and China and is in the process of establishing sales agency relationships to expand sales in these very important countries.

Our creasing matrix business, C&T, has successfully completed a long term engineering project to develop and introduce new processing technology to improve product quality and reduce manufacturing costs - the benefits of this will be seen gradually over the next 6 months or so. In addition, considerable product range harmonisation and rationalisation is being introduced to reduce stockholding costs and also to help improve service and lower wastage.

Palagan, our specialist films business that has to date sold only in the UK, has started to seek and win business in Europe both directly and through agents. The strong product capabilities of this business and the weakness of sterling mean that this is a good opportunity for growth. Palagan has also been busy implementing a project to achieve British Retail Consortium accreditation, which will open up various segments of packaging for the food industry. I am pleased to say that this accreditation is now almost complete and we anticipate new business wins in this area in the near future.

Finally, BNL our plastic bearings business, has also had a very busy period. Of particular note has been:

• The completion of a final round of cost reductions in June, which saw a further annualised cost savings of £0.4m 

• The ongoing transfer of product to be manufactured in the recently established Thai production facility - this is now approaching 50% of parts manufactured

• The full implementation of tool-making capability in Thailand, with the first tools now being manufactured there

• Investigation of both the Indian and Chinese markets with a view to setting up some form of sales representation in both these territories

Currency

The half year has again seen some significant currency volatility, although the overall picture is one of sterling weakness. Against the US$, sterling started the financial year at 1.43 and finished the half year at 1.62, representing a strengthening of some 15%, although the average rate was 1.59. Against the euro, sterling started the financial year at 1.08 and finished at 1.10, apparently relatively stable - however, at the end of July the rate touched 1.18 and the average rate over the period was 1.14. If we go back to the first half of the last financial year sterling was considerably stronger, starting the year at US$1.98 and €1.26.

Sterling's weakness is a major benefit to us, as UK-based exporters. So far, most of the benefit has come from translating foreign currency denominated sales back into sterling, but we can see our increased competitiveness opening up new markets and customers in the near future. Experts believe that sterling is set to remain weak for a while which would significantly benefit our business.

We continue to favour hedging forward approximately 12-18 months to assist with the predictability of earnings and cash flow. This financial year we are hedged at US$1.55, compared to last year when we were hedged at US$1.98.  We have started to hedge forward for the next financial year with forwards contracts in place at an average of US$1.64 so far, this being 6% worse than the current year but considerably better than the rates experienced in the 3 years from 2005-2008.

Banking

Net bank debt at the end of the half year amounted to circa £18m.  Approximately 60% of this debt is denominated in foreign currency, primarily Euros. The average cost has been just over 7%, as 66% of the debt is subject to an interest rate collar with a floor of circa 4.5%. Whilst this level of debt is a legacy of the pre-credit crunch era and appears high in today's environment, the Group has been sufficiently cash generative to meet interest and capital repayments comfortably.

During the half year, all banking covenants have been met and with the exception of the debt leverage covenant, all with good headroom.  The debt leverage covenant has been tighter, primarily due to the currency volatility described above, which has caused the value of our foreign currency debt to move inconsistently when "marked to market" into sterling as required by IFRS.  We anticipate performance against this covenant will improve as debt is paid down and volume recovery continues.  The unrealised translation losses also have the disadvantage of making our statutory Income Statements volatile as large loan translation gains and losses can apply to any period, causing a distraction from the underlying operational performance; consequently we are actively exploring the possibility of converting all loans into sterling. 

Current Trading and Future Prospects

As reported, trading conditions have improved during the first half of the financial year from a low point around the end of FY2009.  We see this trend continuing albeit weakly at this stage.  Currently our order books are better than earlier in the financial year, although they remain short as customers are cautious about their own prospects over the coming months. It should also be remembered that recovery is from an extremely depressed level.

In terms of strategy, we intend to concentrate on organic growth and cash flow, in order to create significant value by paying down debt and building the top line at current margins.  Acquisitions remain a key part of our strategy going forward.  However, we do not envisage acquisition activity resuming in the near term.  

Future prospects for the Group are healthy. We have developed new capabilities and introduced a number of improved products in the last twelve months and we intend to take full advantage of these. In addition, we have good but under-developed penetration of key growth markets in the developing world - including China, India, Brazil, Turkey and Thailand. We intend to exploit these markets fully in the medium term. The Board looks forward to good progress being made over the full year.  

The last twelve months have been particularly challenging for all employees within the Group. I am pleased to say that we have responded to the extreme recessionary conditions decisively and effectively - neither of which would have been possible without the full commitment and flexibility of everyone associated with the Group. The Board is extremely grateful for this and extends its thanks to all accordingly.

Faisal Rahmatallah

Executive Chairman

  Plastics Capital plc 

Consolidated Income Statements 

for the six months ended 30 September 2009

	Note	2009	2009	2009	2009		2008	2008	2008	2008
		£000	£000	£000	£000		£000	£000	£000	£000
							restated *	restated *	restated *	restated *
		Before foreign exchange & exceptional items	Foreign exchange impact on derivatives and loans	Exceptional items	Total		Before foreign exchange & exceptional items	Foreign exchange impact on derivatives and loans	Exceptional items	Total
		£'000	£'000	£'000	£'000		£'000	£'000	£'000	£'000
Revenue		12,883	-	-	12,883		14,905	-	-	14,905
Cost of sales		(8,180)	515	(561)	(8,226)		(8,993)	(82)	(50)	(9,125)
Gross profit		4,703	515	(561)	4,657		5,912	(82)	(50)	5,780
Distribution expenses		(716)	-	-	(716)		(467)	-	-	(467)
Administration expenses		(2,851)	-	-	(2,851)		(3,551)	-	(172)	(3,723)
Operating profit		1,136	515	(561)	1,090		1,894	(82)	(222)	1,590
Financial income		677	393	-	1,070		59	-	-	59
Finance expense		(664)	-	-	(664)		(695)	(320)	-	(1,015)
Net financing income/(costs)		13	393	-	406		(636)	(320)	-	(956)
Profit/(Loss) before tax		1,149	908	(561)	1,496		1,258	(402)	(222)	634
Tax	7	(215)	-	-	(215)		(132)	-	-	(132)
Profit/(Loss) for the period before discontinuing operations		934	908	(561)	1,281		1,126	(402)	(222)	502
Discontinued operations	5	-	-	-	-		(312)	-	-	(312)
Profit/(Loss) for the period		934	908	(521)	1,281		814	(402)	(222)	190
Other comprehensive income
Foreign exchange translation differences		(290)	-	-	(290)		99	-	-	99
Total comprehensive income		644	908	(521)	991		914	(403)	(222)	289
Basic earnings/(loss) per share
Continuing operations	9				4.8p					1.9p
Total	9				4.8p					0.7p

* The prior half year has been restated to include operations classified as discontinued in the prior year as discontinued in the comparative period in accordance with IFRS5

  Plastics Capital plc 

Consolidated Income Statements (continued)

for the year ended 31 March 2009

	Note						2009	2009	2009	2009
							£000	£000	£000	£000
							Before foreign exchange & exceptional items	Foreign exchange impact on derivatives and loans	Exceptional items	Total
							£'000	£'000	£'000	£'000
Revenue							28,185	-	-	28,185
Cost of sales							(17,030)	(990)	(596)	(18,616)
Gross profit							11,155	(990)	(596)	9,569
Distribution expenses							(1,765)	-	-	(1,765)
Administration expenses							(6,099)	-	(1,145)	(7,244)
Operating profit							3,291	(990)	(1,741)	560
Financial income							72	-	-	72
Finance expense							(2,362)	(2,545)	-	(4,907)
Net financing costs							(2,290)	(2,545)	-	(4,835)
Profit/ (Loss) before tax							1,001	(3,535)	(1,741)	(4,275)
Tax	7						696	-	-	696
Profit /(Loss) for the year before discontinuing operations							1,697	(3,535)	(1,741)	(3,579)
Discontinued operations	5						-	-	(1,598)	(1,598)
Profit /(Loss) for the year							1,697	(3,535)	(3,339)	(5,177)
Other comprehensive income
Foreign exchange translation differences							474	-	-	474
Total comprehensive income							2,171	(3,535)	(3,339)	(4,703)
Basic earnings/(loss) per share
Continuing operations	9									(13.3)p
Total	9									(19.3)p

  Plastics Capital plc 

Consolidated Balance Sheets

		Unaudited As at  30 September 2009	Unaudited As at  30 September 2008	Audited As at  31  March 2009
		£000	£000	£000
Non-current assets
Property, plant and equipment		5,289	6,007	5,305
Investments		33	33	33
Intangible assets		23,901	25,161	24,460
		29,223	31,201	29,798
Current assets
Inventories		2,825	3,412	2,844
Trade and other receivables		5,630	7,596	5,411
Corporation tax asset		-	151	59
Cash and cash equivalents		771	(9)	407
		9,226	11,150	8,721
Total assets		38,449	42,351	38,519
Current liabilities
Interest-bearing loans and borrowings		3,562	2,121	3,556
Trade and other payables		3,980	4,381	3,467
		7,542	6,502	7,023
Non-current liabilities
Interest-bearing loans and borrowings		15,376	15,857	16,444
Other financial liabilities		523	326	1,200
Deferred tax liabilities		1,428	2,165	1,272
		17,327	18,348	18,916
Total liabilities		24,869	24,850	25,939
Net assets		13,580	17,501	12,580
Equity attributable to equity holders of the parent
Share capital		270	269	270
Share premium		13,857	13,868	13,848
Reverse acquisition reserve		2,640	2,640	2,640
Translation reserve		127	42	417
Capital redemption reserve		69	-	69
Retained earnings		(3,383)	682	(4,664)
Total equity		13,580	17,501	12,580

Plastics Capital plc

Consolidated Cash Flow Statements

		Unaudited Six months ended 30 September 2009	Unaudited Six months ended 30 September 2008	Audited Year ended 31  March 2009
		£000	£000	£000
Cash flows from operating activities after tax
Profit/(loss) for the period		1,281	190	(5,873)
Adjustments for:
Depreciation, amortisation and impairment		1,006	951	2,408
Financial income		(1,070)	(60)	(72)
Financial expense		664	1,098	5,488
Gain on disposal of PPE		-	-	2
Equity settled share based payment expenses		-	-	33
Income tax expense/(income)		215	132	-
Operating profit before changes in working capital and provisions		2,096	2,311	1,986
(Increase) in trade and other receivables		(219)	(35)	2,150
Decrease in inventories		19	98	666
Increase/(decrease) in trade and other payables		311	(991)	(2,170)
Cash generated from operations		2,207	1,383	2,632
Interest paid		(655)	(826)	(1,432)
Income tax paid		-	(330)	(329)
Net cash from operating activities		1,552	227	871
Cash flows from investing activities
Acquisition of subsidiary, net of cash acquired		-	(602)	-
Acquisition of property, plant and equipment		(431)	(1,303)	(1,501)
Interest received		-	60	72
Acquisition of intangible assets		-	-	(135)
Net cash from investing activities		(431)	(1,845)	(1,564)
Cash flows from financing activities
Proceeds/(fees) from the issue of share capital		-	(455)	50
Proceeds from new loan		-	569	-
Repayment of borrowings		(757)	(213)	(658)
Net cash from financing activities		(757)	(99)	(608)
Increase/(decrease) in cash and cash equivalents		364	(1,717)	(1,301)
Cash and cash equivalents at 1 April		407	1,708	1,708
Cash and cash equivalents at 30 September  and 31 March		771	(9)	407

Plastics Capital plc 

Consolidated statement of changes in equity

	Share capital	Share premium	Translation reserve	Reverse  acquisition reserve	Capital redemption reserve	Retained earnings	Total
	£000	£000	£000	£000	£000	£000	£000
Balance at 31 March 2008	269	13,868	(57)	2,640	-	492	17,212
Total comprehensive income
Profit or loss	-	-	-	-	-	190	190
Foreign exchange translation differences	-	-	99	-	-	-	99
Balance at 30 September 2008	269	13,868	42	2,640	-	682	17,501
Total comprehensive income
Profit or loss	-	-	-	-	-	(5,367)	(5,367)
Foreign exchange translation differences	-	-	375	-	-	-	375
Other movement	-	-	-	-	-	(12)	(12)
Total comprehensive income	-	-	375	-	-	(5,379)	(5,004)
Transactions with owners recorded directly in equity
Issue of new shares	1	49	-	-	-	-	50
Capital redemption reserve	-	(69)	-	-	69	-	-
Equity-settled share based payment transactions	-	-	-	-	-	33	33
Total transactions with owners	1	(20)	-	-	69	33	83
Balance at 31 March 2009	270	13,848	417	2,640	69	(4,664)	12,580
Total comprehensive income
Profit or loss	-	-	-	-	-	1,281	1,281
Foreign exchange translation differences	-	-	(290)	-	-	-	(290)
Total comprehensive income	-	-	(290)	-	-	1,281	991
Transactions with owners recorded directly in equity
Equity-settled share based payment transactions	-	-	-	-	-	-	-
Issue of new shares	-	9	-	-	-	-	9
Total transactions with owners	-	9	-	-	-	-	9
Balance at 30 September 2009	270	13,857	127	2,640	69	(3,383)	13,580

  1    Basis of preparation and accounting policies

Basis of Preparation

The interim financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs as at 30 September 2009 that are effective (or available for early adoption) as at 31 March 2010. Based on these adopted IFRSs, the directors have applied the accounting policies, as set out below, which they expect to apply to the annual IFRS financial statements for the year ending 31 March 2010.

However, the adopted IFRSs that will be effective (or available for early adoption) in the annual financial statements for the period ending 31 March 2010 are still subject to change and to additional interpretations and therefore cannot be determined with certainty. Accordingly, the accounting policies for that annual period will be determined finally only when the annual financial statements are prepared for the period ending 31 March 2010.

Accounting policies

The accounting policies applied to the Interim Results for six months ended 30 September 2009 are consistent with those of the Company's annual accounts for the year ended 31 March 2009 with the exception of the items noted below.

Determination and presentation of operating segments

As of 1 April 2009, the Group determines and presents operating segments based on the information that internally is provided to the Executive Chairman, who is the Group's chief operating decision maker. This change in accounting policy is due to the adoption of IFRS 8 Operating Segments. Previously operating segments were determined and presented in accordance with IAS 14 Segment Reporting. The new accounting policy in respect of segment operating disclosures is presented as follows.

Comparative segment information has been re-presented in conformity with the transitional requirements of IFRS 8. Since the change in accounting policy only impacts presentation and disclosure aspects, there is no impact on earnings per share.

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components. An operating segment's operating results are reviewed regularly by the Executive Chairman to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

Segment results that are reported to the Executive Chairman include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly intangible assets.

Presentation of financial statements

The Group applies revised IAS 1 Presentation of Financial Statements (2007), which became effective as of 1 April 2009. As a result, the Group presents in the consolidated statement of changes in equity all owner changes in equity, whereas non-owner changes in equity are presented in the consolidated statement of comprehensive income. This presentation has been applied in these condensed interim financial statements as of and for the six month period ended on 30 September 2009.

Comparative information has been re-presented so that it is also in conformity with the revised standard. Since the change in accounting policy only impacts presentation aspects, there is no impact on earning per share.

Restatement of Accounts

The interim accounts for the six month period ended 30 September 2008 have been restated for discontinued operations as disclosed in the annual accounts for the year ended 31 March 2009.

Operating segments

The Group has two reportable segments, as described below, which are the Group's strategic business units.  The strategic business units offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Executive Chairman reviews internal management reports on a monthly basis. The following summary describes the operations in each of the Group's reportable segments:

• Printing and Packaging - includes creasing matrix and films

• Power Transmission - includes hose mandrel and plastic bearings

2    Reconciliation of financial highlights table to the consolidated income statement

		Unaudited Six months to 30 September  2009	Unaudited Restated Six months to 30 September  2008	Change
		£000	£000	%
Revenue		12,883	14,905	-13.6%
Gross profit		4,657	5,780	-19.4%
Operating profit		1,090	1,590	-31.4%
Add back: Depreciation		421	335
Add back: Amortisation and impairment		559	559
Add back: Exceptional costs		561	222
EBITDA before exceptionals		2,631	2,706	-2.8%
Profit before tax		1,496	634
Add back: Amortisation and impairment		559	559
Add back: Exceptional costs		561	222
Add back: Unrealised foreign exchange (gains)/losses		(393)	320
Add back: Unrealised derivative (gains)/losses		(677)	3
Profit before tax*		1,546	1,738	-11.0%
Taxation		(215)	(132)
Profit after tax*		1,331	1,606	-17.1%
Basic adjusted EPS*		4.9p	6.0p	-17.1%
Basic EPS from continuing operations		4.8p	1.9p	152.6%
Capital expenditure		431	1,303	-66.9%
Net Debt		18,167	17,987	1.0%

* excluding amortisation, exceptionals, unrealised foreign exchange translation and unrealised derivative gains/losses

  3    Operating segment information

	Power Transmission	Printing & Packaging	Other	Consolidation
	Unaudited Six months to 30 September  2009	Unaudited Six months to 30 September  2009	Unaudited Six months to 30 September  2009	Unaudited Six months to 30 September  2009
	£000	£000	£000	£'000
External revenue	5,949	6,934	-	12,883
Profit/(loss) before tax	(246)	851	-	605
Segment assets	8,259	6,789	23,401	38,449
	Unaudited Restated Six months to 30 September  2008	Unaudited Restated Six months to 30 September  2008	Unaudited Restated Six months to 30 September  2008	Unaudited Restated Six months to 30 September  2008
	£000	£000	£000	£'000
External revenue	6,973	7,932	-	14,905
Profit before tax	594	1,067	-	1,661
Segment assets	9,558	10,166	22,627	42,351
	Audited Year to  31 March  2009	Audited Year to  31 March  2009	Audited Year to  31 March  2009	Audited Year to  31 March  2009
	£000	£000	£000	£'000
External revenue	13,498	14,687	-	28,185
Profit/(loss) before tax	784	1,632	-	2,416
Segment assets	8,797	5,524	24,198	38,519

Reconciliation of reportable segment profit / (loss)

		Unaudited Six months to 30 September 2009 £000	Unaudited Restated Six months to 30 September 2008 £000	Audited Year to 31 March 2009 £000
Total profit /(loss) for reportable segments		605	1,661	2,416
Other loss		(135)	(62)	(1,160)
		470	1,599	1,256
Unallocated amounts:
Amortisation		(559)	(559)	(1,119)
Net foreign exchange gains/(losses)		908	(403)	(3,535)
Unrealised gains/(losses) on derivatives		677	(3)	(877)
Consolidated profit/(loss) before income tax		1,496	634	(4,275)

  4    Exceptional items

Exceptional costs incurred in the period relate to the final redundancy costs associated with the Group's restructuring programme.

5    Discontinued operations

Discontinued operations relate to Mulberry Plastics Limited, the rump of the Trimplex business, which was disposed of in the year ended 31 March 2009.

6    Financial income and expenses

		Unaudited Six months to 30 September 2009 £000	Unaudited Restated Six months to 30 September 2008 £000	Audited Year to 31 March 2009 £000
Financial income:
Interest income		-	59	72
Gains on derivatives used to manage interest rate and foreign exchange risk		677	-	-
Financial income		677	59	72
Financial expenses:
Bank interest		649	680	1,460
Deferred consideration interest		15	12	25
Losses on derivatives used to manage interest rate and foreign exchange risk		-	3	877
Financial expenses		664	695	2,362
Financial income and expenses included within foreign exchange or exceptional items:
Net foreign exchange (gain)/loss		(393)	320	2,545
Exceptional items		(393)	320	2,545

7    Taxation

The taxation charge is calculated by applying the directors' best estimate of the annual tax rate for the profit/(loss) for the period.

8    Dividends

The directors do not recommend the payment of an interim dividend (30 September 2008: nil).

  9    Earnings per share

	Unaudited Six months to 30 September  2009	Unaudited Restated Six months to 30 September  2008	Audited Year to 31 March  2009
	£000	£000	£000
Numerator
Profit/(loss) for the period from continuing operations	1,281	190	(3,579)
Profit/(loss) for the period from discontinued operations	-	-	(1,598)
Profit/(loss) for the period	1,281	190	(5,177)
Denominator
Weighted average number of shares used in basic EPS	26,940,000	26,862,516	26,887,547
Effect of employee share options	13,463	134,076	138,041
Weighted average number of shares used in diluted EPS	26,953,463	26,996,592	27,025,588
Basic earnings per share from continuing operations	4.8p	1.9p	(13.3)p
Diluted earnings per share from continuing operations	4.8p	1.9p	(13.2)p
Basic earnings per share (total)	4.8p	0.7p	(19.3)p
Diluted earnings per share (total)	4.8p	0.7p	(19.3)p

The diluted loss per share has not been calculated due to the loss made in the year ended 31 March 2009.

10    Accounts

Copies of the interim accounts may be obtained from the Company Secretary at the Registered Office of the Company: St Mary's House, 42 Vicarage Crescent, London, SW11 3LD.

 

END

 

 

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