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BrainJuicer Group (SYS1)

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Friday 16 September, 2016

BrainJuicer Group

Interim Results

RNS Number : 0052K
BrainJuicer Group PLC
16 September 2016
 

 

 

Press Release

16 September 2016

 

BrainJuicer Group PLC

("BrainJuicer" or "the Group" or "the Company")

 

 

Unaudited Interim Results for the Six Months ended 30 June 2016

 

BrainJuicer Group PLC (AIM: BJU), the innovative international market research agency, today announces its Interim Results for the six months ended 30 June 2016.

 

Highlights

12% revenue growth to £13.04m (H1 2015: £11.61m)

15% gross profit growth to £10.68m (H1 2015: £9.25m)

22% increase in normalised profit before tax to £2.00m (H1 2015: £1.64m)

45% increase in reported profit before tax to £1.65m (H1 2015: £1.14m)

38% increase in profit after tax to £1.05m (H1 2015: £0.76m)

41% increase in fully diluted earnings per share to 7.9p (H1 2015: 5.6p)

£5.18m cash at period end (31 December 2015: £6.37m) and no debt

§ £2.21m returned to shareholders by way of dividends and share buy-backs in H1

£1.62m dividends to be paid in October 2016 (13.1p per share):

§ Interim dividend of 1.1p per share (2015 interim dividend: 1.0p)

§ Special dividend of 12.0p per share

 

Commenting on the results, John Kearon, Founder and Chief Juicer, said:

"It's enormously gratifying being back to double-digit growth.  The business is now almost exclusively Juicy (our pioneering System1 research methods) and quantitative, enhancing our distinctiveness and ability to scale and grow revenues ahead of costs.  The strong growth in our System1 Brand Tracking and Ad Testing services has also increased the proportion of business which is Ongoing in nature and therefore more stable."

 

This announcement contains inside information.  The Company can be found at www.brainjuicer.com.

 

For further information, please contact:

 

BrainJuicer Group PLC +44 20 7043 1000

Canaccord Genuity Limited +44 20 7523 8000

John Kearon, Chief Executive Officer

Simon Bridges / Henry Fitzgerald-O'Connor /

James Geddes, Chief Financial Officer

Emma Gabriel

Susan Griffin, Chief Marketing Officer

 

[email protected]

 

 

 

BrainJuicer Group PLC                                                                                                                     

Financial information for the six months ended 30 June 2016

 

 

INTERIM STATEMENT

 

During the 6 months to the end of June 2016 the Group returned to double digit revenue growth after two years of relatively pedestrian progress.  We were helped by the fall in the value of the pound, but even in constant currency terms we have had an encouraging 6 months.  Revenue grew 12% (8% in constant currency) and gross profit, our main top line indicator, by 15% (11% in constant currency).

 

Normalised profit before tax grew 22% and reported profit before tax increased by 45%.  Cash flow was again strong, and we finished the period with cash of £5.18m at 30 June 2016 and no debt (31 December 2015: £6.37m and no debt) after having returned £2.21m to shareholders by way of dividends and share buy-backs.

 

Our Ad Testing and Brand Tracking services performed particularly well, with gross profit increasing by 59%.  These products represented 36% of our business over the latest 6 months, and much of this business is Ongoing in nature (as opposed to Ad Hoc).  These services have been growing strongly over a prolonged period with compound annual growth of 38% in gross profit over the last five years (using H1 2011 as the base).  We introduced a new framework for successful brand-building last year ("Fame, Feeling & Fluency") on the back of the transition of our old Juice Generation and Behavioural Consultancy services to Brand Strategy, and this has helped propel the growth. 

 

Predictive Markets, our largest single product (32% of our business over the latest 6 month period) declined a little, with gross profit down 4%.  This is in part due to pricing pressure, which we are addressing with a lower cost and cheaper-to-deliver "express" version of the product.  We have also developed a "Fluent Innovation" framework to better express its value in guiding innovation.  Our other quantitative services, which collectively made up 30% of our gross profit, grew a healthy 29%.  Juice Generation and Behavioural Consultancy services are now an insignificant part of our business (less than 2% in the latest period).

 

In terms of geography, gross profit in the US business grew 27% (17% in constant currency), and that after several years of double digit growth.  The US is now our largest market by quite a margin, making up 41% of our total gross profit over the latest 6 months.  In Continental Europe we grew gross profit by 30% (21% in constant currency), rebounding strongly after a decline last year, and in Brazil we also grew well (by 21%, and 33% in constant currency).  In the UK, our second largest market, gross profit declined by 2% due to sharp declines in two large clients for specific reasons associated with those two clients.  In one of these, for example, a large multi-year programme of work had come to a natural end.  We do not believe that this is indicative of a wider trend, and indeed we have been growing other accounts well.  Excluding the declines in these two clients, UK gross profit increased 22%.  We experienced a small decline (5%, or 10% in constant currency) in gross profit in our Singapore and China region.

 

Earlier this year we launched our new creative Advertising Agency, System1, and have invested £0.26m to date in the form of operating losses.  Potential clients have given positive feedback, and we remain hopeful that this will generate a new business stream for us over the long term.  We envisage that the total investment (in the form of operating losses) will not exceed the planned (and communicated) £0.3m.

 

 

INTERIM STATEMENT (continued)

 

Normalised overheads (i.e. overheads before one-off costs, System1 Advertising Agency start-up costs, and share-based payments) grew 15%, and much of this growth was due to an increase in our bonus accrual from zero last year to £0.77m this year.  Normalised profit before tax (which is reported profit excluding one-off costs, System1 Advertising Agency operating loss, and share based payments) increased by 22%, and reported profit before tax by 45%.

 

H1 2016

H1 2015

growth

Normalised profit before tax

£2.00m

£1.64m

22%

   Share-based payments

£(0.09)m

£(0.18)m

 

   One-off costs (due diligence and office move costs in 2015)

-

£(0.32)m

 

   System1 Advertising Agency operating loss

£(0.26)m

-

 

Reported profit before tax

£1.65m

£1.14m

45%

 

Our effective tax rate increased from 33% to 36% due to the higher proportion of profit from the US and Continental Europe where corporation tax rates are higher than the UK.  This dampened growth of profit after tax to 38%.  The Company repurchased 542,439 shares during the period, and this has helped our earnings per share.  Diluted earnings per share grew 41% to 7.9p per share.

 

Cash flow continues to be strong, with 77% conversion of profit after tax to operating cash flow (before financing).  The Company paid dividends of £0.45m and repurchased £1.77m of shares from shareholders, and intends to continue to return surplus cash to shareholders via a mix of dividends and share buy backs.  In addition to over £5m of cash and no debt, the Company has a £2m unused committed bank facility.  We will be paying an interim dividend of 1.1p per share and a special dividend of 12.0p per share in October 2016, collectively totalling £1.62m.

 

As previously announced we are changing our year end from 31 December to 31 March.  During this transition year, we shall report unaudited results in this format for the 12 months to 31 December 2016 during March 2017, followed by an audited report for the 15 months to 31 March 2017 during June 2017.

 

Outlook

 

After a period of modest growth over the previous two years, while our Juice Generation qualitative business and Behavioural Consultancy services were being de-emphasised, more meaningful growth has returned.  The business is now almost exclusively quantitative making it easier to scale and grow.  Our Brand Strategy work and "Fame, Feeling, & Fluency" framework developed last year are bearing fruit, with strong growth in our Ad Testing and Branding Tracking services.  This has increased the proportion of our business which is Ongoing in nature and therefore more stable.  Nevertheless, the majority of our business is still Ad Hoc, with little revenue visibility.

 

Despite the increased macro-economic uncertainty following the UK's EU referendum, we have not so far noticed any significant change in client behaviour, and trading during July and August has been satisfactory.  As always, we are cautious in terms of the short term outlook, but we are pleased with our progress and continue to be confident in the Group's long term growth prospects.

 

John Kearon                                                                               James Geddes

Chief Juicer                                                                                Chief Financial Officer
 

BrainJuicer Group PLC                                                                                                                     

Financial information for the six months ended 30 June 2016

 

 

5 YEAR SUMMARY - HALF YEAR
 

(£000s unless specified otherwise)

 

 

 

Six months to 30 June

2016

2015

2014

2013

2012

 

 

 

 

 

 

Revenue

13,043

11,610

11,197

10,765

10,379

growth

12%

4%

4%

4%

14%

Gross profit

10,685

9,254

8,719

8,455

7,998

growth

15%

6%

3%

6%

12%

Operating profit

1,667

1,174

1,536

1,298

716

growth

42%

-24%

18%

81%

14%

Pre-tax profit

1,650

1,139

1,520

1,298

717

growth

45%

-25%

17%

81%

14%

Post-tax profit

1,054

763

1,018

870

481

growth

38%

-25%

17%

81%

16%

EPS - diluted

7.9p

5.6p

7.5p

6.7p

3.7p

growth

41%

-25%

12%

81%

16%

Cash flow pre financing

810

565

(147)

1,948

(714)

 

 

 

 

 

 

Cash balance (no debt)

5,183

5,286

2,528

5,460

2,411

 

 

 

 

 

 

Interim dividend (related to period)

1.1p

1.0p

1.0p

0.9p

0.85p

growth

10%

-

11%

6%

13%

Special dividend (paid in period)

-

-

12.0p

-

-

 

 

 

 

 

 

Share buy-backs (net of stock option proceeds)*

1,768

-

1,531

29

276

 

 

 

 

 

 

 

*2014 share buy-backs includes £980,000 relating to the cash-settling of part of the Company's long term incentive plan.

 

 

 

 

5 YEAR SUMMARY - ANNUAL
 

(£000s unless specified otherwise)

 

 

 

Year to 31 December

2015

2014

2013

2012

2011

 

 

 

 

 

 

Revenue

25,184

24,645

24,457

20,822

20,713

growth

2%

1%

17%

-

27%

Gross profit

20,250

19,410

19,087

16,068

16,063

growth

4%

2%

19%

-

27%

Operating profit

4,546

4,301

3,550

1,513

2,758

growth

6%

21%

135%

-45%

24%

Pre-tax profit

4,501

4,286

3,556

1,515

2,760

growth

5%

21%

135%

-45%

24%

Post-tax profit

3,032

2,897

2,435

1,038

1,850

growth

5%

19%

135%

-44%

25%

EPS - diluted

22.7p

21.3p

18.7p

7.9p

14.1p

growth

7%

14%

137%

-44%

25%

 

 

 

 

 

 

Cash flow pre financing

2,696

3,157

4,466

866

1,446

 

 

 

 

 

 

Cash balance (no debt)

6,365

5,347

6,188

3,755

3,683

 

 

 

 

 

 

Interim and final dividend (relating to period)

4.5p

4.3p

3.9p

3.1p

3.0p

growth

5%

10%

26%

3%

25%

Special dividend (paid in period)

-

12.0p

12.0p

-

-

 

 

 

 

 

 

Share buy-backs (net of stock option proceeds)*

948

1,938

71

408

217

 

 

 

 

 

 

 

*2014 share buy-backs includes £1,239,000 relating to the cash-settling of part of the Company's long term incentive plan.

 

 

 

BrainJuicer Group PLC  

Financial information for the six months ended 30 June 2016

 

 

CONDENSED CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2016

 

 

 

 

Note

Six months to

30 Jun 2016

Unaudited

Six months to

30 Jun 2015

Unaudited

Year to

31 Dec 2015

Audited

 

 

£'000

£'000

£'000

 

 

 

 

 

Revenue

4

13,043

11,610

25,184

 

 

 

 

 

Cost of sales

 

(2,358)

(2,356)

(4,934)

 

 

 

 

 

Gross profit

4

10,685

9,254

20,250

 

 

 

 

 

Administrative expenses

 

(9,018)

(8,080)

(15,704)

 

 

 

 

 

Operating profit

4

1,667

1,174

4,546

 

 

 

 

 

Finance costs

 

(17)

(35)

(45)

 

 

 

 

 

Profit before taxation

4

1,650

1,139

4,501

 

 

 

 

 

Income tax expense

 

(596)

(376)

(1,469)

 

 

 

 

 

Profit for the financial period

 

1,054

763

3,032

 

 

 

 

 

Attributable to the equity holders of the Company

 

1,054

763

3,032

 

 

 

 

 

 

Earnings per share attributable to equity

holders of the Company

 

Basic earnings per share

5

8.2p

6.0p

23.9p

 

 

 

 

 

Diluted earnings per share

5

7.9p

5.6p

22.7p

 

All of the activities of the Group are classed as continuing.

 

 

 

 

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

for the six months ended 30 June 2016

 

 

 

 

Six months to

30 Jun 2016

Unaudited

Six months to

30 Jun 2015

Unaudited

Year to

31 Dec 2015

Audited

 

£'000

£'000

£'000

 

 

 

 

Profit for the financial period

1,054

763

3,032

 

 

 

 

Other comprehensive income:

 

 

 

Items that may be subsequently reclassified to profit or loss

 

 

 

Exchange differences on translating foreign operations

407

(108)

(88)

Other comprehensive income for the period, net of tax

407

(108)

(88)

 

 

 

 

Total comprehensive income for the period

attributable to equity holders

1,461

655

2,944

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEET

as at 30 June 2016

 

 

 

Note

30 Jun 2016

Unaudited

30 Jun 2015
Unaudited

31 Dec 2015
Audited

 

 

£'000

£'000

£'000

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

311

321

304

Intangible assets

 

374

641

519

Deferred tax asset

 

480

882

589

 

 

1,165

1,844

1,412

Current assets

 

 

 

 

Inventories

 

266

122

90

Trade and other receivables

 

8,015

5,183

6,595

Income tax recoverable

 

325

-

-

Cash and cash equivalents

 

5,183

5,286

6,365

 

 

13,789

10,591

13,050

Total assets

 

14,954

12,435

14,462

 

 

 

 

 

EQUITY

 

 

 

 

Capital and reserves attributable to equity holders of the Company

 

 

 

 

Share capital

8

132

132

132

Share premium account

 

1,599

1,599

1,599

Merger reserve

 

477

477

477

Foreign currency translation reserve

 

255

(172)

(152)

Retained earnings

 

6,074

6,107

7,184

Total equity

 

8,537

8,143

9,240

 

 

 

 

 

LIABILITIES

 

 

 

 

Non-current liabilities

 

 

 

 

Provisions

 

522

407

469

 

 

522

407

469

Current liabilities

 

 

 

 

Provisions

 

308

291

263

Trade and other payables

 

5,587

3,540

4,161

Current income tax liabilities

 

-

54

329

 

 

5,895

3,885

4,753

Total liabilities

 

6,417

4,292

5,222

Total equity and liabilities

 

14,954

12,435

14,462

 

  

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2016

 

 

Note

Six months to

30 Jun 2016

Unaudited

Six months to

30 Jun 2015

Unaudited

Year to

31 Dec 2015

Audited

 

 

£'000

£'000

£'000

 

 

 

 

 

Net cash generated from operations

7

2,043

1,274

4,137

Tax paid

 

(1,144)

(477)

(1,119)

Net cash generated from operating activities

 

899

797

3,018

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(86)

(227)

(291)

Purchase of intangible assets

 

(3)

(5)

(31)

Net cash used by investing activities

 

(89)

(232)

(322)

 

 

 

 

 

Net cash flow before financing activities

 

810

565

2,696

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Interest

 

(17)

(35)

(45)

Proceeds from issue of new shares

 

-

20

20

Proceeds from sale of treasury shares

8

77

-

211

Purchase of own shares

8

(1,845)

-

(1,159)

Dividends paid to owners

6

(445)

(417)

(544)

Net cash used by financing activities

 

(2,230)

(432)

(1,517)

 

 

 

 

 

Net (decrease)/increase in cash

and cash equivalents 

 

(1,420)

133

1,179

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

6,365

5,347

5,347

Exchange gains/(losses) on cash and cash equivalents

 

238

(194)

(161)

Cash and cash equivalents

at end of period

 

5,183

5,286

6,365

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

as at 30 June 2016

 

 

Share
capital

Share premium account

Merger
reserve

Foreign currency translation reserve

Retained earnings

Total

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

At 1 January 2015

131

1,580

477

(64)

5,581

7,705

 

 

 

 

 

 

 

Profit for the financial period

-

-

-

-

763

763

Other comprehensive income:

 

 

 

 

 

 

- currency translation differences

-

-

-

(108)

-

(108)

Total comprehensive income

-

-

-

(108)

763

655

 

 

 

 

 

 

 

Transactions with owners:

 

 

 

 

 

 

Employee share options scheme:

 

 

 

 

 

 

- new shares issued on exercise

1

19

-

-

-

20

- value of employee services

-

-

-

-

112

112

- deferred tax credited to equity

-

-

-

-

68

68

Dividends paid to owners

-

-

-

-

(417)

(417)

 

1

19

-

-

(237)

(217)

 

 

 

 

 

 

 

At 30 June 2015

132

1,599

477

(172)

6,107

8,143

 

 

 

 

 

 

 

At 1 January 2015

131

1,580

477

(64)

5,581

7,705

 

 

 

 

 

 

 

Profit for the financial year

-

-

-

-

3,032

3,032

Other comprehensive income:

 

 

 

 

 

 

- currency translation differences

-

-

-

(88)

-

(88)

Total comprehensive income

-

-

-

(88)

3,032

2,944

 

 

 

 

 

 

 

Transactions with owners:

 

 

 

 

 

 

Employee share options scheme:

 

 

 

 

 

 

- exercise of share options

1

19

-

-

-

20

- value of employee services

-

-

-

-

112

112

- current tax credited to equity

-

-

-

-

169

169

- deferred tax debited to equity

-

-

-

-

(218)

(218)

Dividends paid to owners

-

-

-

-

(544)

(544)

Sale of treasury shares

-

-

-

-

211

211

Purchase of treasury shares

-

-

-

-

(1,159)

(1,159)

 

1

19

-

-

(1,429)

(1,409)

 

 

 

 

 

 

 

At 31 December 2015

132

1,599

477

(152)

7,184

9,240

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)

as at 30 June 2016

 

 

 

Share
capital

Share premium account

Merger
reserve

Foreign currency translation reserve

Retained earnings

Total

 

 

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

At 1 January 2016

 

132

1,599

477

(152)

7,184

9,240

 

 

 

 

 

 

 

 

Profit for the financial period

 

-

-

-

-

1,054

1,054

Other comprehensive income:

 

 

 

 

 

 

 

- currency translation differences

 

-

-

-

407

-

407

Total comprehensive income

 

-

-

-

407

1,054

1,461

 

 

 

 

 

 

 

 

Transactions with owners:

 

 

 

 

 

 

 

Employee share options scheme:

 

 

 

 

 

 

 

- value of employee services

 

-

-

-

-

55

55

- current tax credited to equity

 

-

-

-

-

71

71

- deferred tax debited to equity

 

-

-

-

-

(77)

(77)

Sale of treasury shares

 

-

-

-

-

77

77

Purchase of treasury shares

 

-

-

-

-

(1,845)

(1,845)

Dividends paid to owners

 

-

-

-

-

(445)

(445)

 

 

-

-

-

-

(2,164)

(2,164)

 

 

 

 

 

 

 

 

At 30 June 2016

 

132

1,599

477

255

6,074

8,537

                 

 

 

 

  

 

1.   General information

 

BrainJuicer Group PLC ("the Company") is United Kingdom resident, and its subsidiaries (together "the Group") provide on-line market research services.  The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange ("AIM").  The address of the Company's registered office is Russell Square House, 10-12 Russell Square, London WC1B 5EH.

 

The Board of Directors approved this condensed consolidated interim financial information for issue on 16 September 2016.

 

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006 and is unaudited.  The Group's lastest statutory financial statements were for the year ended 31 December 2015 and these have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain any statement under Section 498 of the Companies Act 2006.

 

2.   Basis of preparation

 

This condensed consolidated interim financial information has been prepared in accordance with IAS 34, 'Interim financial reporting' as adopted by the European Union.  This financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2015, which have been prepared in accordance with IFRSs as adopted by the European Union.

 

3.   Principal accounting policies

 

The principal accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 December 2015, as described in those annual financial statements.

 

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

 

4.   Segment information

 

Management review the following key segmental information: gross profit and operating profit before allocation of central overheads of the Group's geographic operating units ("Reportable Segments"); and the split of business by type of research solution.

 

 

 

4.   Segment information (continued)

 

Financial performance of

Reportable Segments:

Six months ended 30 Jun 2016

Six months ended 30 Jun 2015

 

Revenue

Gross profit

Operating profit/(loss)

Revenue

Gross

profit

Operating profit

 

£'000

£'000

£'000

£'000

£'000

£'000

Research Business

 

 

 

 

 

 

US

4,950

4,344

2,317

4,197

3,417

1,807

United Kingdom

3,586

2,871

1,506

3,660

2,918

1,807

Continental Europe

2,729

2,100

1,302

2,136

1,620

863

Asia

804

622

159

852

689

201

Brazil

885

741

470

765

610

267

Australia

55

45

41

-

-

-

 

13,009

10,723

5,795

11,610

9,254

4,945

System1 Advertising Agency

 

 

 

 

 

 

United Kingdom

34

(38)

(264)

-

-

-

 

13,043

10,685

5,531

11,610

9,254

4,945

 

 

Revenue and gross profit

by research solution:

Six months ended 30 Jun 2016

Six months ended 30 Jun 2015

 

Revenue

Gross profit

Revenue

Gross profit

 

£'000

£'000

£'000

£'000

Research Business

 

 

 

 

Ad Testing

3,266

2,887

2,376

2,054

Brand Tracking

1,399

992

584

389

Predictive Markets

3,862

3,446

4,113

3,594

Juicy Core products

8,527

7,325

7,073

6,037

Other Juicy Quantitative products

2,123

1,816

1,478

1,195

Juicy Quantitative Research

10,650

9,141

8,551

7,232

Twist Quantitative Research

1,913

1,401

1,768

1,298

Total Quantitative Research

12,563

10,542

10,319

8,530

Juice Generation and "BCU"

446

181

1,291

724

 

13,009

10,723

11,610

9,254

Percentage of revenue

 

82.4%

 

79.7%

 

Segmental revenue is revenue generated from external customers and so excludes intercompany revenue and is attributed to geographical areas based upon the location in which the service is delivered.

 

Segmental operating profit excludes costs relating to central services provided by our Operations, IT, Marketing, HR and Finance teams and our Board of Directors.

 

 

 

4.   Segment information (continued)

 

A reconciliation of total operating profit for Reportable Segments to total profit before income tax is set out below:

 

 

Six months ended 30 Jun

 

2016

2015

 

£'000

£'000

 

 

 

Operating profit for reportable segments

5,531

4,945

Central overheads

(3,864)

(3,771)

Operating profit

1,667

1,174

Finance costs

(17)

(35)

Profit before income tax

1,650

1,139

 

 

5.   Earnings per share

 

(a)  Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Ordinary Shares in issue during the period:

 

 

Six months ended 30 Jun

 

2016

2015

 

 

 

Profit attributable to equity holders of the Company (£'000)

1,054

763

 

 

 

Weighted average number of Ordinary Shares in issue

12,863,801

12,654,587

 

 

 

Basic earnings per share

8.2p

6.0p

 

(b)  Diluted earnings per share

Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding assuming conversion of all dilutive share options to Ordinary Shares:

 

 

Six months ended 30 Jun

 

2016

2015

 

 

 

Profit attributable to equity holders of the Company and profit used to determine diluted earnings per share (£'000)

1,054

763

 

 

 

Weighted average number of Ordinary Shares in issue

12,863,801

12,654,587

Share options

455,474

887,843

Weighted average number of Ordinary Shares for diluted earnings per share

13,319,275

13,542,430

 

 

 

Diluted earnings per share

7.9p

5.6p

 

 

 

6.   Dividends

 

On 11 May 2016 the Company paid a final dividend of 3.5 pence per share, amounting to £0.45m in respect of the year ended 31 December 2015.  In October 2016, the Company will pay an interim dividend of 1.1 pence per share, amounting to £0.14m, in respect of the year ended 31 December 2016 (an increase of 10% on last year's interim dividend) and a special dividend of 12 pence per share amounting to £1.48m.  The interim and special dividends are not recorded in these interim accounts.

 

7.   Net cash generated from operations

 

 

Six months ended 30 Jun

 

2016

2015

 

£'000

£'000

 

 

 

Profit before taxation

1,650

1,139

Depreciation

84

67

Amortisation

148

161

Interest paid

17

35

Share-based payment expense

55

112

(Increase)/decrease in inventory

(176)

73

(Increase)/decrease in receivables

(1,420)

1,541

Increase/(decrease) in payables

1,523

(1,942)

Exchange differences on operating items

162

88

Net cash generated from operations

2,043

1,274

 

8.   Share capital

 

During the reporting period the Company transferred 187,478 Ordinary Shares ("shares") out of treasury to satisfy the exercise of employee share options at a weighted average exercise price of 41 pence per share for cash consideration of £77,000. The weighted average share price at exercise date was 361 pence per share. The Company subsequently repurchased 119,677 of these shares at a weighted average price of 361 pence for cash consideration of £432,000.

 

The Company also purchased 422,762 shares for cash consideration of £1,412,713.

 

Following these transactions, at 30 June 2016, the Company had 13,223,762 shares in issue (31 December 2015: 13,223,762) of which 864,229 were held in treasury (31 December 2015: 509,268), and the Company had 1,174,606 stock options outstanding of which 583,486 are fully vested.

 

 

 

9.   Related party transactions

 

During the period the Company paid the following dividends to directors:

 

 

Six months ended 30 Jun

 

2016

2015

 

£

£

 

 

 

John Kearon

135,100

127,380

James Geddes

5,541

5,225

Alex Batchelor

3,565

3,361

Ken Ford

700

660

Robert Brand

1,050

990

Graham Blashill

175

165

 

146,131

137,781

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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