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Jaywing PLC (JWNG)

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Tuesday 20 November, 2018

Jaywing PLC

Half-year Report

RNS Number : 8327H
Jaywing PLC
20 November 2018
 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

Date:               19 November 2018

On behalf of:   Jaywing plc ("Jaywing", "the Company" or "the Group")

Embargoed:    0700 hrs 20 November 2018

 

Jaywing plc

Interim Results 2018/2019

 

Jaywing plc (AIM: JWNG) today announces its interim results for the six months ended
30 September 2018 ("H1").

 

Financial highlights from continuing operations

 

 

6 months to 30 September 2018

£'000

6 months to 30 September 2017

£'000

Gross profit*

18,158

17,932

Adjusted EBITDA**

1,331

1,454

Adjusted EBITDA margin***

7.3%

8.0%

Loss after tax

(634)

(376)

Reported EPS

(0.68)p

(0.44)p

Net debt

7,132

8,083

 

* Revenue less direct costs of sale

** Before amortisation, share based charges, exceptional items and acquisition related costs

*** As a percentage of gross profit

 

Commenting on the results, Martin Boddy, Chairman of Jaywing plc, said:

 

"I am pleased to report solid progress in H1 18/19.


We have seen growth in gross profit year on year, building sales momentum and recognising early stage benefits of cost realignment and debt reduction year on year. The disposal of our contact centre (HSM Limited), as announced by the Company this morning, is an important non-core asset disposal, which will allow management to concentrate entirely on developing its core business and will simplify the Jaywing offering.

 

Following the disposal, we will operate as a consultancy, an agency and a technology business all under-pinned by data science. Our skill is to combine these to create solutions that our clients find indispensable.  We call this our "One Jaywing" model, a model which is now being utilised with over two thirds of our top 50 clients.  Our approach was recognised once again when Jaywing was awarded best large integrated agency in the Prolific North Awards for the second consecutive year in May 2018. It was also validated by major new business wins for SugarCRM and Hermes as well as growth in existing clients including Firstdirect.

 

We are seeing momentum build quarter on quarter this year, particularly in our performance marketing division, Epiphany.  The sales pipeline is also far stronger than at the same time last year and our churn rate is far lower. Our overall EBITDA margin, 7.3% H1 18/19, reflects the specific business mix in H1, and also does not yet capture the benefits of the cost base measures we have undertaken.  

 

The end of September represents the seasonal peak of our borrowing. However, net debt has reduced year on year. We successfully renegotiated our banking facilities in July and are comfortably within our covenants.

 

Jaywing has demonstrable value in its data science, digital marketing and marketing technology assets, and operates in market segments with significant growth potential. The disposal transaction of HSM Limited has multiple additional benefits: it strengthens our balance sheet; provides a sizeable and ongoing revenue stream; removes a lease obligation and provides better potential for significant improvement in margins.

 

Looking ahead to the remainder of H2, we don't anticipate market conditions improving in the UK given the general level of uncertainty in the run up to the UK's anticipated withdrawal from the European Union on 29 March 2019.  Fiscal Q4 (calendar Q1) has historically been a seasonally important period for the Company, due to the annual budgeting cycles of our clients, which are not expected to change.  Despite the market conditions, the Board believes that Jaywing's differentiated offering makes it well placed to capitalise on growth opportunities in both the UK and Australia."

 

 

 

 

Enquiries:

Jaywing plc

Michael Sprot (CFO / Company Secretary)

Tel: 0114 281 1200

Cenkos Securities plc

Nicholas Wells/Callum Davidson

Tel: 020 7397 8900

 

CHIEF EXECUTIVE COMMENTARY

 

 

In the Media & Analysis segment, our performance marketing division, Epiphany has had an excellent H1 after a difficult 2017/18.  Gross profit has recovered to a similar level to the equivalent period last year whilst EBITDA is 20% higher showing the impact of our cost realignment.

 

Our data science consultancy has seen comparative H1 EBITDA performance down by £0.6m year on year, which reflects the scaling down of a relatively large and high margin financial services project. The focus here has been and continues to be on securing new business, alongside some cost realignment in what is an increasingly valuable industry segment, where there is a scarcity of talented resource.

 

Our Australian operation has continued to grow strongly year on year with gross profit up 45% and EBITDA up 126% on a purely organic basis. This excludes the acquisition of Frank Digital, which was only acquired in February and is growing well and integrating its services with that of our wider operations in Australia, replicating the "One Jaywing" model. 

 

We continue to invest in Jaywing Intelligence, though the net impact of this in H2 should be less pronounced as our technology gains traction with key clients.

 

In our Agency segment, we have had a number of significant new business wins, which over time should drive higher margins. The collaborative "One Jaywing" nature of our work has produced some excellent solutions for our clients and continues to differentiate when pitching for new client work.

 

With the disposal process of HSM Limited now complete, management can now focus on driving up the profitability of the core business and exiting the year in a strong position with good momentum.

 

 

Rob Shaw

Chief Executive Officer

19 November 2018
 

Consolidated interim statement of comprehensive income (unaudited)

 

 

 

 

Unaudited

Six months ended

30 Sept 2018

Restated

Unaudited

Six months ended

30 Sept 2017

 

 

Audited year

ended

31 March 2018

 

Note

£'000

£'000

£'000

 

 

 

 

 

 

 

 

 

 

Revenue

    4

21,984

23,466

47,541

Direct costs

 

(3,826)

(5,534)

(10,826)

Gross profit

 

18,158

17,932

36,715

Other operating income

 

-

46

64

Amortisation

 

(950)

(1,010)

(2,033)

Operating expenses

 

(17,794)

(17,198)

(35,759)

Operating loss

 

(586)

(230)

(1,013)

Finance income

 

2

-

-

Finance costs

 

(159)

(79)

(203)

Net financing costs

 

(157)

(79)

(203)

Loss before tax

 

(743)

(309)

(1,216)

Tax credit / (expense)

  5

109

(67)

83

Loss for the period from continuing operations

 

(634)

(376)

(1,133)

Exchange differences on retranslation of foreign operations

 

(5)

(10)

(39)

Loss for the period attributable to the equity holders of the parent

 

(639)

(386)

(1,172)

 

 

 

 

 

 

Loss per ordinary share

 

   6

 

 

 

Basic loss per share

 

(0.68p)

(0.44p)

(1.25p)

 

 

 

 

 

Diluted loss per share

 

(0.68p)

(0.44p)

(1.25p)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

Consolidated interim balance sheet (unaudited)

 

 

 

Unaudited

30 Sept 2018

Restated

Unaudited

30 Sept 2017

 

Audited

31 March 2018

 

Note

£'000

£'000

£'000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

1,342

1,423

1,443

Goodwill

 

34,674

33,842

34,496

Other intangible assets

 

5,106

6,296

5,962

 

 

41,122

41,561

41,901

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

 

13,071

12,687

11,754

Cash and cash equivalents

 

2

1

632

 

 

13,073

12,688

12,386

Total assets

 

54,195

54,249

54,287

 

 

 

 

 

Liabilities

 

 

 

 

Current liabilities

 

 

 

 

Bank overdraft

7

(884)

(934)

-

Other interest bearing loans and borrowings

7

(1,500)

(4,750)

(4,750)

Trade and other payables

 

(12,412)

(11,145)

(12,545)

Tax payable

 

(397)

(782)

(249)

Provisions

 

(151)

(172)

(151)

 

 

(15,344)

(17,783)

(17,695)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Other interest bearing loans and borrowings

7

(4,750)

(2,400)

(1,800)

Deferred tax liabilities

 

(809)

(1,078)

(951)

 

 

(5,559)

(3,478)

(2,751)

Total liabilities

 

(20,903)

(21,261)

(20,446)

 

 

 

 

 

Net assets

 

33,292

32,988

33,841

 

 

 

 

 

Equity

 

 

 

 

 

Capital and reserves attributable to equity holders of the company

 

 

 

 

Share capital

 

34,992

34,666

34,992

Share premium account

 

10,088

9,108

10,088

Minority interest

 

1,742

1,513

1,718

Capital redemption reserve

 

125

125

125

Shares purchased for treasury

 

(25)

(25)

(25)

Share option reserve

 

826

614

736

Foreign currency translation reserve

 

(25)

9

(20)

Retained earnings

 

(14,431)

(13,022)

(13,773)

Total equity

 

33,292

32,988

33,841

  

 

 

 

Consolidated interim cash flow statement (unaudited)

 

 

Unaudited

Six months ended

30 Sept 2018

Unaudited

Six months ended

30 Sept 2017

 

Audited year

 ended

31 March 2018

 

Note

£'000

£'000

£'000

Cash flow from operating activities

 

 

 

 

Loss for the period

 

(634)

(376)

(1,133)

Adjustment for:

 

 

 

 

Depreciation, amortisation and impairment

 

1,234

1,264

2,588

Movement in provisions

 

-

(1)

(22)

Foreign exchange

 

(5)

(10)

(39)

Finance income

 

(2)

-

-

Finance costs

 

159

79

203

Share based payment charge

 

152

110

238

Taxation

 

(109)

67

(83)

Operating cash flow before changes in working capital

 

795

1,133

1,752

 

 

 

 

 

Increase in trade and other receivables

 

(1,124)

(1,285)

(360)

Increase/decrease in trade and other payables

 

216

(965)

152

Cash (used in)/generated from operations

 

(113)

(1,117)

1,544

Interest received

 

2

-

-

Interest paid

 

(154)

(79)

(203)

Tax paid

 

-

(71)

(553)

Net cash flow from operating activities

 

(265)

(1,267)

788

Cash flows from investing activities

 

 

 

 

Acquisitions net of cash acquired

 

-

(112)

(647)

Payment of deferred consideration

 

(672)

(2,528)

(2,528)

Acquisition of intangible assets

 

(94)

(76)

(448)

Acquisition of property, plant and equipment

 

(183)

(575)

(865)

Net cash outflow from investing activities

 

(949)

(3,291)

(4,488)

Cash flows from financing activities

 

 

 

 

Increase in borrowings

 

-

2,000

2,000

Repayment of borrowings

 

(300)

(600)

(1,200)

Proceeds from issue of share capital

 

-

9

1,316

Net cash (outflow)/inflow from financing activities

 

(300)

1,409

2,116

Net decrease in cash, cash equivalents and bank overdrafts

 

(1,514)

(3,149)

(1,584)

Cash and cash equivalents at beginning of period

 

632

2,216

2,216

Cash and cash equivalents at end of period

 

(882)

(933)

632

 

 

 

 

 

Cash and cash equivalents comprise:

 

 

 

 

Cash at bank and in hand

 

2

1

632

Bank overdrafts

7

(884)

(934)

-

Cash and cash equivalents at end of period

 

(882)

(933)

632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interim statement of changes in equity (unaudited)

 

 

 

Share

capital

Share

Premium

account

Capital

redemption

reserve

Treasury

shares

Minority

interest

Share

option

reserve

Foreign

currency

translation

reserve

Retained

earnings

Total

equity

  £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000

Balance at 31 March 2017

34,657

9,108

125

(25)

1,513

504

19

(12,646)

33,255

 

Issue of share capital

9

-

-

-

-

-

-

-

9

Acquisition of subsidiaries

 

 

 

 

 

 

 

 

 

Charge in respect of share based payments

-

-

-

-

-

110

-

-

110

Transactions with owners

9

-

-

-

-

110

-

-

119

Loss for the period

-

-

-

-

-

-

-

(376)

(376)

Retranslation of foreign currency

-

-

-

-

-

-

(10)

-

(10)

Total comprehensive income for the period

-

-

-

-

-

-

(10)

(376)

(386)

Balance at 30 September 2017

34,666

9,108

125

(25)

1,513

614

9

(13,022)

32,988

 

 

 

 

 

 

 

 

 

 

Issue of share capital

326

980

-

-

-

-

-

-

1,306

Acquisition of subsidiaries

-

-

-

-

211

-

-

-

211

Charge in respect of share based payments

-

-

-

-

-

122

-

-

122

Transactions with owners

326

980

-

-

211

122

-

-

1,639

Loss for the period

-

-

-

-

(6)

-

-

(751)

(757)

Retranslation of foreign currency

-

-

-

-

-

-

(29)

-

(29)

Total comprehensive income for the period

-

-

-

-

(6)

-

(29)

(751)

(786)

Balance at 31 March 2018 (audited)

34,992

10,088

125

(25)

1,718

736

(20)

(13,773)

33,841

 

 

 

 

 

 

 

 

 

 

Charge in respect of share based payments

-

-

-

-

-

90

-

-

90

Transactions with owners

-

-

-

-

-

90

-

-

90

Profit / (loss) for the period

-

-

-

-

24

-

-

(658)

(634)

Retranslation of foreign currency

-

-

-

-

-

-

(5)

-

(5)

Total comprehensive income for the period

-

-

-

-

24

-

(5)

(658)

(639)

Balance at 30 September 2018

34,992

10,088

125

(25)

1,742

826

(25)

(14,431)

33,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.     General Information

 

Jaywing plc (the "Company") is incorporated and domiciled in the United Kingdom. The Company is listed on the AIM market of the London Stock Exchange. The registered address is Albert Works, Sidney Street, Sheffield,
S1 4RG.

 

The interim financial information was approved for issue on 19 November 2018.

 

2.     Basis of preparation

 

The consolidated interim financial statements for the six months ended 30 September 2018, which are unaudited, have been prepared in accordance with applicable accounting standards and under the historical cost convention except for certain financial instruments that are carried at fair value.

 

The financial information for the year ended 31 March 2018 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The Group's statutory financial statements for the year ended 31 March 2018 have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain statements under Section 498 (2) or Section 498 (3) of the Companies Act 2006.

 

The consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2018, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

 

During the prior year, a brought forward adjustment was made to correct a client media spend provision held in the accounts. The reserves balance carried forward at 31 March 2017 has been reduced by £538k.

 

3.     Accounting policies

 

Except as described below, the principal accounting policies of Jaywing plc and its subsidiaries ("the Group") are consistent with those set out in the Group's 2018 annual report and financial statements.

 

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

 

The following standards and interpretations of relevance to the Group have been issued but are not yet effective and have not been adopted by the Group:

· IFRS 16 Leases (effective 1 January 2019)

 

As of 1 April 2018, the Group adopted IFRS 15 "revenue from contracts with customers".

 

Revenue arises from the provision of marketing services. To determine whether to recognise revenue, the Group follows a 5-step process as follows:

 

1.     Identifying the contract with a customer

2.     Identifying the performance obligations

3.     Determining the transaction price

4.     Allocating the transaction price to the performance obligations

5.     Recognising revenue when / as performance obligations are satisfied

 

Revenue is measured at transaction price, stated net of VAT and other sales related taxes. Revenue is generally recognised over time as the Group satisfies performance obligations by transferring the promised services to its customers.

 

The standard is required to be adopted either retrospectively or using a modified retrospective approach. The Group used the modified retrospective approach to adopt the standard. Under this transitional provision, the cumulative effect of initially applying IFRS 15 is recognised on the date of initial application as an adjustment to retained earnings. No adjustment to retained earnings was required upon adoption of IFRS 15.

 

The Group has reviewed its various revenue streams and underlying contracts with customers and, as a result of the review, the adoption of IFRS 15 did not have an impact on the Group's statements of comprehensive income and financial position.

 

The Group does not currently anticipate that the adoption of the other standards and interpretations above will have a material impact on the Group's financial statements in the period of initial application other than IFRS 16 Leases. A review of IFRS 16 will be conducted to determine its impact on the Group.

 

Other standards and interpretations in issue but not yet effective are not considered to have any relevance to the Group.

 

4.     Segment information (unaudited)

 

The Group reports its business activities in two areas: Agency Services and Media & Analysis being its two primary business activities. Unallocated represents the Group's head office function, along with intragroup transactions.

Total assets exclude intangible assets, cash and external borrowings which have not been allocated to operating segments. The majority of the Group's activities are carried out within the UK. There is also a subsidiary in Australia.

 

4.     Segment information (unaudited) (continued)

 

Six months ended 30 September 2018

 

 

 

 

Agency Services

Media & Analysis

Central

Total Group

 

£'000

£'000

£'000

£'000

Revenue

8,706

14,215

(937)

21,984

Direct costs

(1,398)

(3,365)

937

(3,826)

Gross profit

7,308

10,850

-

18,158

Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments

(6,560)

(8,022)

(2,245)

(16,827)

Operating profit / (loss) before depreciation, amortisation, exceptional items, acquisition related costs and credit for share based payments

748

2,828

(2,245)

1,331

Depreciation

(108)

(133)

(43)

(284)

Amortisation

(513)

(437)

-

(950)

Other exceptional costs

(57)

(55)

(224)

(336)

Acquisition related costs

-

-

(147)

(147)

Charge for share based payments

-

-

(200)

(200)

Operating profit / (loss)

70

2,203

(2,859)

(586)

Finance costs

 

 

 

(157)

Loss before tax

 

 

 

(743)

Tax expense

 

 

 

109

Loss for the period

 

 

 

(634)

 

Six months ended 30 September 2017 (restated)

 

 

 

 

Agency Services

Media & Analysis

Central

Total Group

 

£'000

£'000

£'000

£'000

 

 

 

 

 

Revenue

8,381

15,801

(716)

23,466

Direct costs

(1,259)

(4,991)

716

(5,534)

Gross profit

7,122

10,810

-

17,932

Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments

(6,181)

(7,747)

(2,550)

(16,478)

Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments

941

3,063

(2,550)

1,454

Depreciation

(107)

(116)

(31)

(254)

Amortisation

(646)

(364)

-

(1,010)

Other operating income

46

-

-

46

Compensation for loss of office

(29)

(80)

(37)

(146)

Acquisition related costs

-

-

(42)

(42)

Charge for share based payments

-

-

(278)

(278)

Operating profit / (loss)

205

2,503

(2,938)

(230)

Finance costs

 

 

 

(79)

Loss before tax

 

 

 

(309)

Tax expense

 

 

 

(67)

Loss for the period

 

 

 

(376)

 

 

 

4.   Segment information (unaudited) (continued)

 

Year ended 31 March 2018 (audited)

 

 

 

 

Agency Services

Media & Analysis

Central

Total

 

£'000

£'000

£'000

£'000

Revenue

18,025

31,565

(2,049)

47,541

Direct costs

(2,718)

(10,157)

2,049

(10,826)

Gross profit

15,307

21,408

-

36,715

Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments

(12,979)

(15,449)

(5,262)

(33,690)

Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments

2,328

5,959

(5,262)

3,025

Other operating income

64

-

-

64

Depreciation

(222)

(231)

(102)

(555)

Amortisation

(1,293)

(740)

-

(2,033)

Exceptional costs

(12)

(282)

(200)

(494)

Acquisition related costs

-

-

(827)

(827)

Charges for share based payments

(51)

(4)

(138)

(193)

Operating (loss)/profit

814

4,702

(6,529)

(1,013)

Finance income

 

 

 

-

Finance costs

 

 

 

(203)

Loss before tax

 

 

 

(1,216)

Tax expense

 

 

 

83

Loss for the period

 

 

 

(1,133)

 

 

 

 

 

The September 2017 segmental analysis has been restated to reallocate some costs between direct costs and operating expenses.

 

Total assets

Agency Services

Media & Analysis

Central

Total

 

£'000

£'000

£'000

£'000

30 September 2018

25,306

34,164

(5,275)

54,195

31 March 2018

28,408

32,278

(6,399)

54,287

30 September 2017

27,128

26,613

508

54,249

 

 

 

 

 

 

 

 

5.     Tax credit / (expense) (unaudited)

 

A reconciliation of the charge that would result from applying the standard UK corporation tax rate to profit before tax to the tax charge is given below.

 

 

 

Six months ended

30 Sept 2018

Six months ended

30 Sept 2017

Audited year

 ended

31 March 2018

 

 

£'000

£'000

£'000

Recognised in the consolidated statement of comprehensive income:

 

 

 

 

Current year tax

 

(33)

(220)

(262)

Origination and reversal of temporary differences

 

142

153

345

Total tax credit / (charge)

 

109

(67)

83

Loss before tax

 

(743)

(309)

(1,216)

Tax charge thereon at UK corporation tax rate of 19% (2017: 20%)

 

141

62

231

Effects of:

 

 

 

 

Non-deductible expenses

 

(32)

(129)

(112)

Share based payment charges

 

-

-

(36)

Total tax credit / (charge)

 

109

(67)

83

 

 

6.     Loss per share (unaudited)

 

 

 

Six months ended

30 Sept 2018

Six months ended

30 Sept 2017

Audited year

 ended

31 March 2018

 

 

Pence per share

Pence per share

Pence per

Share

 

 

 

 

 

Basic loss per share

 

(0.68p)

(0.44p)

(1.25p)

 

 

 

 

 

Diluted loss per share

 

(0.68p)

(0.44p)

(1.25p)

 

Loss per share has been calculated by dividing the loss attributable to shareholders by the weighted average number of ordinary shares in issue during the period. The calculations of basic and diluted loss per share are:

 

 

 

Six months ended

30 Sept 2018

Six months ended

30 Sept 2017

Audited year

 ended

31 March 2018

 

 

£'000

£'000

£'000

Loss for the period

 

(639)

(386)

(1,172)

 

 

 

 

 

Weighted average number of ordinary shares in issue:

 

Number '000

Number '000

Number '000

Basic

 

93,432

86,896

93,432

Adjustment for share options, warrants and contingent shares

 

6,104

5,268

6,126

Diluted

 

99,536

92,164

99,558

 

 

 

 

 

 

 

 

 

 

 

           
 

 

Adjusted earnings per share

 

 

 

 

 

 

Six months ended

30 Sept 2018

Six months ended

30 Sept 2017

Audited year

 ended

31 March 2018

 

 

Pence per share

Pence per share

Pence per

Share

 

 

 

 

 

Basic adjusted earnings per share

 

0.56p

0.92p

1.73p

Diluted adjusted earnings per share

 

0.52p

0.87p

1.62p

 

Adjusted earnings per share have been calculated by dividing the profit attributable to shareholders before other income, amortisation, impairment, charges for share based payments and the current period tax charge by the weighted average number of ordinary shares in issue during the period. The numbers used in calculating the basic and diluted adjusted earnings per share are reconciled below:

 

 

 

 

 

 

 

Six months ended

30 Sept 2018

Six months ended

30 Sept 2017

Audited year

 ended

31 March 2018

 

 

£'000

£'000

£'000

Loss before tax

 

(743)

(309)

(1,172)

Amortisation

 

950

1,010

2,033

Acquisition related costs

 

147

42

827

Charge for share based payments

 

200

278

193

Adjusted profit attributable to shareholders

 

554

1,021

1,881

Current period tax charge

 

(33)

(220)

(262)

 

 

521

801

1,619

 

 

 

 

 

7.     Bank overdraft, borrowings and loans (unaudited)

 

 

30 Sept 2018

30 Sept 2017

Audited

31 March 2018

Summary

 

£'000

£'000

£'000

Bank overdraft

 

884

934

-

Borrowings, undiscounted cash flows

 

6,250

7,150

6,550

 

 

7,134

8,084

6,550

 

 

 

 

 

Borrowings are repayable as follows:

 

 

 

 

Within 1 year

 

 

 

 

  Bank overdraft

 

884

934

-

  Borrowings

 

1,500

4,750

4,750

Total due within 1 year

 

2,384

5,684

4,750

 

 

 

 

 

In more than one year but less than two years

 

1,800

1,200

1,800

In more than two years but less than three years

 

1,800

1,200

-

In more than three years but less than four years

 

1,150

-

-

Total amount due

 

7,134

8,084

6,550

 

 

 

 

 

Average interest rates at the balance sheet date were:

 

%

%

%

  Overdraft

 

2.00

-

-

  Term loan

 

4.00

2.61

2.25

  Revolving credit facility

 

-

2.51

2.25

 

As the loans are at variable market rates their carrying amount is equivalent to their fair value.

 

The borrowing facilities available to the Group at 30 September 2018 were £1.1 million (2017: £1.1 million) and, taking into account cash balances within the Group, there was £1.1 million (2017: £1.1 million) of available borrowing facilities.

 

A composite accounting system is set up with the Group's bankers, which allows debit balances on overdraft to be offset across the Group with credit balances.

 

Reconciliation of net debt

Cash at bank and in hand

Overdraft

Borrowings

Net debt

 

£'000

£'000

£'000

£'000

30 September 2018

2

(884)

(6,250)

(7,132)

31 March 2018

632

-

(6,550)

(5,918)

30 September 2017

1

(934)

(7,150)

(8,083)

 

 

 

 

8.     Provisions (unaudited)

 

 

 

 

30 Sept 2018

 

30 Sept 2017

Audited

31 March 2018

 

 

£'000

£'000

£'000

At the beginning of the period

 

151

173

173

Additional provisions

 

-

(1)

(22)

At the end of the period

 

151

172

151

 

 

 

 

 

Provisions relate to leases in the Group where the commercial benefit has either ceased or will cease before the normal expiry period.

 

9.     Share capital (unaudited)

 

Authorised:

 

 

 

 

 

 

45p deferred shares

5p ordinary shares

 

 

£'000

£'000

 

Authorised share capital at 31 March 2018 and 30 September 2018

45,000

10,000

 

 

 

 

 

             

 

Allotted, issued and fully paid

 

 

45p deferred shares

5p ordinary shares

 

 

Number

Number

£'000

Issued share capital at 31 March 2018 and 30 September 2018

67,378,520

93,432,217

34,992

 

 

 

 

 

           

 

10.   Related party transactions (unaudited)

 

There were no significant changes in the nature and size of related party transactions for the period from those disclosed in the Annual Report for the year ended 31 March 2018.

 

11.   Post balance sheet event

 

On 19 November 2018 Jaywing plc agreed the sale of the entire share capital of HSM Limited for an upfront consideration of £500,000.

 

 

 


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