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Jaywing PLC (JWNG)

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Friday 20 December, 2019

Jaywing PLC

Half-year Report

RNS Number : 5661X
Jaywing PLC
20 December 2019
 

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 December 2019

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

Embargoed:    0700 hrs on 20 December 2019

 

Jaywing plc

Interim Results 2019/2020

&

Directorate Change

 

Jaywing plc (AIM: JWNG) today announces its interim results for the six months ended
30 September 2019 ("H1").

 

Financial highlights from continuing operations

 


6 months to 30 September 2019

£'000

6 months to 30 September 2018

£'000

Gross profit*

11,996

14,979

Adjusted EBITDA**

(551)

1,327

Adjusted EBITDA margin***

(4.6%)

8.9%

Loss after tax

(1,215)

(634)

Reported EPS

(1.38p)

(0.70p)

Net debt

5,748

7,132

 

* Revenue less direct costs of sale

** Before amortisation, share based charges, exceptional items, acquisition related costs and adjustment for the impact of IFRS 16

*** As a percentage of gross profit

 

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

 

"As we have outlined in previous announcements, trading in the UK in the first quarter of the year was very weak with a modest improvement in the second quarter. With the political and economic uncertainty in the period, many clients have been focused on their short term marketing spend and where this spend is discretionary, it has been running at a level well below that seen in previous years. However, trading in our Australia operation continued to show profitable growth with EBITDA increasing by 40%.

 

Overall, like for like Gross Profit for the half year fell by 20% to £12m but the impact on EBITDA was mitigated through cost management and efficiencies resulting in a like for like EBITDA loss of £551k. Despite this, we have generated a small positive cashflow from operations. Net debt reduced year on year following the sale of HSM Limited in January 2019 and loan repayments.

 

On 2 October 2019, following the half year period, we announced that entities associated with two of our major shareholders had acquired the Company's existing secured loan facility of £5.2 million owed to Barclays Bank plc. The major shareholders immediately provided the Company with additional secured facilities by increasing the Jaywing Facility by £3.0 million to £8.2 million, which enabled the Company to repay its outstanding overdraft and provided it with additional working capital.

 

By successfully tackling the Group's funding challenge Jaywing is now in a financially stronger position.

 

During September we developed a plan with the objective of returning our UK operations to profitability and cash generation in the short term, which assumed no improvement in trading conditions. Taking expert input we concluded that we needed to take a different approach and the plan sets out how we will reshape and re-engineer the organisation to address the changes that we are seeing in the way clients engage with agencies and the new demands that they are making of them. Since September management has been focused on executing the plan and I am pleased to say that we are making good progress. We have improved the management of our working capital, materially realigned our cost base and adopted a new and contemporary agency model that drives revenue and creates efficiencies in delivering even higher quality and effective work for clients. All of this is now being reflected in a stronger financial run rate.

 

The composition of the Board has also been reviewed and by mutual agreement. Adrian Lingard, Chief Operating Officer, is stepping down from the Board with immediate effect. On behalf of the Board I would like to thank him for his contribution over the past four years.

 

Beyond the short term, the Board is considering a range of strategic options to return the Company to highly accretive revenue growth. With its performance marketing proposition and pedigree in data science, Jaywing has some highly attractive capabilities that differentiate it from its competition and position it in areas of marketing spend that are set to grow."

 

 

Enquiries:

Jaywing plc

Michael Sprot (CFO / Company Secretary)

Tel: 0114 281 1200

Cenkos Securities plc

Nicholas Wells/Callum Davidson

Tel: 020 7397 8900



 

 

Consolidated interim statement of comprehensive income (unaudited)

 



 

Unaudited

Six months ended

30 Sept 2019

 

Unaudited

Six months ended

30 Sept 2018

 

 

Audited year

ended

31 March 2019


Note

£'000

£'000

£'000











Revenue

    5

13,815

18,731

35,554

Direct costs


(1,819)

(3,752)

(5,709)

Gross profit


11,996

14,979

29,845

Other operating income


20

-

13

Amortisation


(777)

(886)

(1,795)

Operating expenses


(12,619)

(14,503)

(28,872)

Operating loss


(1,380)

(410)

(809)

Finance income


1

2

4

Finance costs


(157)

(159)

(305)

Net financing costs


(156)

(157)

(301)

Loss before tax from continuing operations


(1,536)

(567)

(1,110)

Tax credit

  6

321

109

175

Loss after tax from continuing operations


(1,215)

(458)

(935)

Loss from discontinued operations


-

(176)

(1,610)

Loss for the period


(1,215)

(634)

(2,545)

Loss for the period is attributable to:





Non-controlling interests


74

24

140

Owners of the parent


(1,289)

(658)

(2,685)



(1,215)

(634)

(2,545)

Other comprehensive income










Items that will be reclassified subsequently to profit or loss





Exchange differences on retranslation of foreign operations


(13)

(5)

20

Total comprehensive loss for the period


(1,228)

(639)

(2,525)






Total comprehensive income is attributable to:

 

  




Non-controlling interests


74

24

140

Owners of the parent


(1,302)

(663)

(2,665)



(1,228)

(639)

(2,525)






Loss per share

7




Basic loss per share from continuing operations


(1.38p)

(0.52p)

(1.15p)

Basic loss per share from discontinued operations


-

(0.18p)

(1.72p)

Total


(1.38p)

(0.70p)

(2.87p)






Diluted loss per share from continuing operations


(1.38p)

(0.52p)

(1.15p)

Diluted loss per share from discontinued operations


-

(0.18p)

(1.72p)

Total


(1.38p)

(0.70p)

(2.87p)

 

 



Consolidated interim balance sheet (unaudited)



 

Unaudited

30 Sept 2019

 

Unaudited

30 Sept 2018

 

Audited

31 March 2019


Note

£'000

£'000

£'000

Assets





Non-current assets





Property, plant and equipment


3,330

1,342

1,015

Goodwill


33,054

34,674

33,054

Other intangible assets


3,650

5,106

4,364



40,034

41,122

38,433






Current assets





Trade and other receivables


6,522

13,071

8,256

Tax receivable


285

-

-

Cash and cash equivalents


1

2

690



6,808

13,073

8,946

Total assets


46,842

54,195

47,379






Liabilities





Current liabilities





Bank overdraft

8

(549)

(884)

-

Other interest bearing loans and borrowings

8

(1,800)

(1,500)

(1,800)

Trade and other payables


(8,832)

(12,412)

(9,546)

Tax payable


-

(397)

(205)

Provisions


(42)

(151)

(42)



(11,223)

(15,344)

(11,593)






Non-current liabilities





Other interest bearing loans and borrowings

8

(3,400)

(4,750)

(3,850)

Lease liability


(1,770)

-

-

Deferred tax liabilities


(552)

(809)

(656)



(5,722)

(5,559)

(4,506)

Total liabilities


(16,945)

(20,903)

(16,099)






Net assets


29,897

33,292

31,280






Equity





 

Capital and reserves attributable to equity holders of the company





Share capital


34,992

34,992

34,992

Share premium account


10,088

10,088

10,088

Capital redemption reserve


125

125

125

Shares purchased for treasury


(25)

(25)

(25)

Share option reserve


683

826

838

Foreign currency translation reserve


(13)

(25)

-

Retained earnings


(17,178)

(14,431)

(15,889)

Equity attributable to owners of the parent


28,672

31,550

30,129






Non-controlling interest


1,225

1,742

1,151






Total equity


29,897

33,292

31,280

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interim cash flow statement (unaudited)



Unaudited

Six months ended

30 Sept 2019

Unaudited

Six months ended

30 Sept 2018

 

Audited year

 ended

31 March 2019


Note

£'000

£'000

£'000

Cash flow from operating activities





Loss for the period


(1,215)

(634)

(2,545)

Adjustment for:





Depreciation, amortisation and impairment


1,297

1,234

3,440

Loss on sale of HSM Limited


-

-

1,370

Foreign exchange


(15)

(5)

-

Finance income


(1)

(2)

(4)

Finance costs


157

159

305

Share based payment charge


(155)

152

177

Taxation


(321)

(109)

(175)

Operating cash flow before changes in working capital


(253)

795

2,568






Decrease / (increase) in trade and other receivables


1,736

(1,124)

1,599

(Decrease) / increase in trade and other payables


(1,475)

216

(1,745)

Cash (used in)/generated from operations


8

(113)

2,422

Interest received


1

2

4

Interest paid


(103)

(154)

(305)

Tax paid


(273)

-

(287)

Net cash flow from operating activities


(367)

(265)

1,834

Cash flows from investing activities





Payment of deferred consideration


(325)

(672)

(592)

Proceeds from sale of HSM Limited


-

-

403

Acquisition of intangible assets


(63)

(94)

(297)

Acquisition of property, plant and equipment


(33)

(183)

(252)

Net cash outflow from investing activities


(421)

(949)

(738)

Cash flows from financing activities





Repayment of borrowings


(450)

(300)

(900)

Acquisition of non-controlling interest


-

-

(138)

Net cash outflow from financing activities


(450)

(300)

(1,038)

Net (decrease) / increase in cash, cash equivalents and bank overdrafts


(1,238)

(1,514)

58

Cash and cash equivalents at beginning of period


690

632

632

Cash and cash equivalents at end of period


(548)

(882)

690






Cash and cash equivalents comprise:





Cash at bank and in hand


1

2

690

Bank overdrafts

7

(549)

(884)

-

Cash and cash equivalents at end of period


(548)

(882)

690
















 

 



Consolidated interim statement of changes in equity (unaudited)

 

 

 


Share capital

Share premium account

Capital redemption reserve

Treasury Shares

Share option reserve

Foreign currency translation reserve

Retained earnings

Equity attributable to parent

Non-controlling interest

Total  equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 31 March 2018

34,992

10,088

125

(25)

736

(20)

(13,773)

32,123

1,718

33,841

Charge in respect of share-based payments

 

-

 

-

 

-

 

-

 

90

 

-

 

-

90

 

-

 

90

Transactions with owners

-

-

-

-

90

-

-

90

-

90

Profit/(loss) for the period

-

-

-

-

-

-

(658)

(658)

24

(634)

Retranslation of foreign currency

-

-

-

-

-

(5)

-

(5)

-

(5)

Total comprehensive income for the period

-

-

-

-

-

(5)

(658)

(663)

24

(639)

Balance at 30 September 2018

34,992

10,088

125

(25)

826

(25)

(14,431)

31,550

1,742

33,292












Acquisition of non-controlling interests

-

-

-

-

-

-

569

569

(707)

(138)

Charge in respect of share-based payments

-

-

-

-

12

-

-

12

-

12

Transactions with owners

-

-

-

-

12

-

569

581

(707)

(126)

Profit/(loss) for the period

-

-

-

-

-

-

(2,027)

(2,027)

116

(1,911)

Retranslation of foreign currency

-

-

-

-

-

25

-

25

-

25

Total comprehensive income for the period

-

-

-

25

(2,002)

116

(1,886)

Balance at 31 March 2019 (audited)

34,992

10,088

125

(25)

838

-

(15,889)

30,129

1,151

31,280












Charge in respect of share-based payments

-

-

-

-

(155)

-

-

(155)

-

(155)

Transactions with owners

-

-

-

-

(155)

-

-

(155)

-

(155)

Profit/(loss) for the period

-

-

-

-

-

-

(1,289)

(1,289)

74

(1,215)

Retranslation of foreign currency

-

-

-

-

-

(13)

-

(13)

-

(13)

Total comprehensive income for the period

-

-

-

-

-

(13)

(1,289)

(1,302)

74

(1,228)

Balance at 30 September 2019

34,992

10,088

125

(25)

683

(13)

(17,178)

28,672

1,225

29,897












 

 

 

 

 

 

 

 



 

 

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 December 2019.

 

2.     Basis of preparation

 

The consolidated interim financial statements for the six months ended 30 September 2019, 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 2019 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 2019 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 2019, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

 

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 2019 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 Group has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2019 annual financial statements, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 April 2019 and will be adopted in the 2020 financial statements. The only standard impacting the Group that will be adopted in the annual financial statements for the year ended 31 March 2020, and which have given rise to a change in the Group's accounting policies is:

 

• IFRS 16 leases

 

Details of the impact of this standard is given below. Other new and amended standards and interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to have a material impact on the Group.

 

4.     New IFRS implementation

 

The Company has adopted IFRS 16 - Leases for the financial year ending 31 March 2020, and it has chosen to use the modified retrospective approach to adoption which means there are no restatements to the prior year figures.

 

IFRS 16 introduces a single lessee accounting model, whereby the Group now recognises a lease liability and a right of use asset at 1 April 2019 for leases previously classified as operating leases. Within the income statement, operating lease charges, which previously were included in administrative expenses, have been replaced by depreciation and interest expenses.

 

The adoption of IFRS 16 resulted in a right of use asset of £2.8 million, with a corresponding liability of £2.8 million, being recognised as at 1 April 2019 which was depreciated to a value of £2.5 million as at 30 September 2019.

 

In order to see how the impact of IFRS 16 has affected Adjusted EBITDA*, a reconciliation is presented below:

 


6 months ended 30 September 2019

£'000

6 months ended 30 September 2018

£'000

Adjusted EBITDA* - consistent with 2018 presentation and accounting policy

(551)

1,327

Changes due to new accounting policy - IFRS 16

425

-

Adjusted EBITDA* - consistent with 2019 presentation and accounting policy

(126)

1,327

 

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

 

 

 

 

 

The Group has adopted IFRS 16 on a modified retrospective basis. Upon transition, a lease liability has been recognised based on future lease payments discounted at an appropriate borrowing rate. Additionally, a right

of use asset has been recognised along with a related lease liability. Within the income statement, the operating lease charge (£370k) has been replaced by depreciation (£333k) and interest expense (£54k). This has resulted in a decrease in operating expenses and an increase in finance costs.

 


6 months ended 30 September 2019

£'000

6 months ended 30 September 2018

£'000

Non-current assets



Property, plant and equipment - consistent with 2018 presentation and accounting policy

861

1,342

Changes due to new accounting policy - IFRS 16 - Right of use asset

2,469

-

Property, plant and equipment - consistent with 2019 presentation and accounting policy

3,330

1,342




Current liabilities



Current liabilities - consistent with 2018 presentation and accounting policy

10,562

15,344

Changes due to new accounting policy - IFRS 16 - Short term leases

661

-

Current liabilities - consistent with 2019 presentation and accounting policy

11,223

15,344




Non-current liabilities



Non-current liabilities - consistent with 2018 presentation and accounting policy

3,952

5,559

Changes due to new accounting policy - IFRS 16 - Long term leases

1,770

-

Non-current liabilities - consistent with 2019 presentation and accounting policy

5,722

5,559



 

 

5.     Segment information (unaudited)

 

Jaywing reports its business activities in three areas: Brand Performance, Online Performance and Data, Analysis & Technology. Central Costs represents the Group's head office function, along with intragroup transactions. The 2018 results have been restated into the new segments.

 

 

Six months ended 30 September 2019






Brand

Performance

Online

Performance

Data Analysis & Technology

Central

Costs

Total Group


£'000

£'000

£'000

£'000

£'000

Revenue

4,822

7,509

3,390

(1,906)

13,815

Direct costs

(1,282)

(2,010)

(433)

1,906

(1,819)

Gross profit

3,540

5,499

2,957

-

11,996

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

(3,702)

(4,488)

(2,809)

(1,123)

(12,122)

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

(162)

1,011

148

(1,123)

(126)

Other Operating Income

20

-

-

-

20

Depreciation

(88)

(298)

(13)

(121)

(520)

Amortisation

(359)

(369)

(49)

-

(777)

Exceptional costs

(46)

(146)

(10)

(267)

(469)

Acquisition related costs

-

-

-

(293)

(293)

Charge for share based payments

-

-

-

785

785

Operating profit / (loss)

(635)

198

76

(1,019)

(1,380)

Finance costs





(156)

Loss before tax





(1,536)

Tax credit





321

Loss for the period





(1,215)

 

Six months ended 30 September 2018 - continuing operations


Brand

Performance

Online

Performance

Data Analysis & Technology

Central

Costs

 

Total Group


£'000

£'000

£'000

£'000

£'000







Revenue

6,070

6,546

7,052

(937)

18,731

Direct costs

(1,340)

(333)

(3,016)

937

(3,752)

Gross profit

4,730

6,213

4,036

-

14,979

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

(4,262)

(4,840)

(3,341)

(1,209)

(13,652)

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

468

1,373

695

(1,209)

1,327

Depreciation

(48)

(109)

(19)

(43)

(219)

Amortisation

(488)

(360)

(38)

-

(886)

Other exceptional costs

(6)

(36)

(19)

(224)

(285)

Acquisition related costs

-

-

-

(147)

(147)

Charge for share based payments

-

-

-

(200)

(200)

Operating profit / (loss)

(74)

868

619

(1,823)

(410)

Finance costs





(157)

Loss before tax





(567)

Tax credit





109

Loss for the period





(458)

 

 

5.   Segment information (unaudited) (continued)

 

Year ended 31 March 2019 (audited) - continuing operations

 


Brand

Performance

Online

Performance

Data Analysis & Technology

Central

Costs

Total Group


£'000

£'000

£'000

£'000

£'000

Revenue

11,685

13,289

12,446

(1,866)

35,554

Direct costs

(2,504)

(609)

(4,502)

1,906

(5,709)

Gross profit

9,181

12,680

7,944

40

29,845

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

(8,224)

(9,931)

(6,225)

(2,136)

(26,516)

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

957

2,749

1,719

(2,096)

3,329

Other operating income

13

-

-

-

13

Impairment to value of goodwill

(1,050)

-

-

-

(1,050)

Depreciation

(89)

(203)

(36)

(84)

(412)

Amortisation

(897)

(811)

(87)

-

(1,795)

Exceptional costs

(27)

(108)

(214)

(779)

(1,128)

Acquisition related costs

(66)

(100)

-

577

411

Charges for share based payments

(14)

(19)

(27)

(117)

(177)

Operating (loss)/profit

(1,173)

1,508

1,355

(2,499)

(809)

Finance income





4

Finance costs





(305)

Loss before tax





(1,110)

Tax credit





175






(935)

 

 

The September 2018 segmental analysis has been restated to reallocate some costs between direct costs and operating expenses.

 

Capital employed

Brand

Performance

Online

Performance

Data Analysis & Technology

Central

Costs

Discontinued

Operations

 

Total Group

 


£'000

£'000

£'000

£'000

£'000

£'000

 

30 September 2019

17,960

13,107

9,490

(10,660)

-

29,897

31 March 2019

19,267

13,742

10,175

(11,904)

-

31,280

30 September 2018

21,741

12,963

12,469

(15,044)

1,163

33,292







 



 

6.     Tax credit (unaudited)

 

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

 



Six months ended

30 Sept 2019

Six months ended

30 Sept 2018

Audited year

 ended

31 March 2019



£'000

£'000

£'000

Recognised in the consolidated statement of comprehensive income:





Current year tax


215

(33)

(91)

Origination and reversal of temporary differences


106

142

266

Total tax credit


321

109

175

Loss before tax


(1,536)

(567)

(1,110)

Tax charge thereon at UK corporation tax rate of 19% (2018: 19%)


292

108

211

Effects of:





Non-deductible expenses


29

1

(36)

Total tax credit


321

109

175

 

 

7.     Loss per share (unaudited)

 


Six months ended

30 Sept 2019

Six months ended

30 Sept 2018

Audited year

 ended

31 March 2019


Pence per share

Pence per share

Pence per

Share





Basic loss per share from continuing operations

(1.38p)

(0.52p)

(1.15p)

Basic loss per share from discontinued operations

-

(0.18p)

(1.72p)

Basic loss per share

(1.38p)

(0.70p)

(2.87p)





Diluted loss per share from continuing operations

(1.38p)

(0.52p)

(1.15p)

Diluted loss per share from discontinued operations

-

(0.18p)

(1.72p)

Diluted loss per share

(1.38p)

(0.70p)

(2.87p)

 

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 2019

Six months ended

30 Sept 2018

Audited year

 ended

31 March 2019



£'000

£'000

£'000

Loss for the period attributable to shareholders from continuing operations


(1,289)

(482)

(1,075)

Loss for the period attributable to shareholders from discontinued operations


-

(176)

(1,610)

Total loss for the period attributable to shareholders


(1,289)

(658)

(2,685)






Weighted average number of ordinary shares in issue:


Number '000

Number '000

Number '000

Basic


93,432

93,432

93,432

Adjustment for share options, warrants and contingent shares


3,688

1,481

1,707

Diluted


97,120

94,913

95,139






 

 

 

 

 

 

 

 

 

 

 





Adjusted earnings per share







Six months ended

30 Sept 2019

Six months ended

30 Sept 2018

Audited year

 ended

31 March 2019



Pence per share

Pence per share

Pence per

share

Basic adjusted earnings per share


(1.11p)

0.56p

1.39p

Diluted adjusted earnings per share


(1.11p)

0.55p

1.36p

 

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 2019

Six months ended

30 Sept 2018

Audited year

 ended

31 March 2019



£'000

£'000

£'000

Loss before tax from continuing operations


(1,536)

(743)

(2,685)

Amortisation


777

950

1,885

Impairment to the carrying value of goodwill


-

-

1,050

Loss on sale of HSM Limited


-

-

1,370

Acquisition related costs


293

147

(411)

Charge for share based payments


(785)

200

177

Adjusted profit attributable to shareholders


 (1,251)

554

1,386

Current period tax charge


215

(33)

(91)



(1,036)

521

1,295






8.     Bank overdraft, borrowings and loans (unaudited)



30 Sept 2019

30 Sept 2018

Audited

31 March 2019

Summary


£'000

£'000

£'000

Bank overdraft


549

884

-

Borrowings, undiscounted cash flows


5,200

6,250

5,650



5,749

7,134

5,650






Borrowings are repayable as follows:





Within 1 year





  Bank overdraft


549

884

-

  Borrowings


1,800

1,500

1,800

Total due within 1 year


2,349

2,384

1,800






In more than one year but less than two years


3,400

1,800

3,850

In more than two years but less than three years


-

1,800

-

In more than three years but less than four years


-

1,150

-

Total amount due


5,749

7,134

5,650






Average interest rates at the balance sheet date were:


%

%

%

  Overdraft


2.00

2.00

-

  Term loan


4.05

4.00

4.10

  Revolving credit facility


N/A

-

N/A

 

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 2019 were £1.5 million (2018: £1.1 million) and, taking into account cash balances within the Group, there was £1.5 million (2018: £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 2019

1

(549)

(5,200)

(5,748)

31 March 2019

690

-

(5,650)

(4,960)

30 September 2018

2

(884)

(6,250)

(7,132)



 

 

9.     Provisions (unaudited)

 



 

30 Sept 2019

 

30 Sept 2018

Audited

31 March 2019



£'000

£'000

£'000

At the beginning of the period


42

151

151

Disposal of HSM Limited


-

-

(109)

At the end of the period


42

151

42






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

 

10.   Share capital (unaudited)

 

Authorised:







45p deferred shares

5p ordinary shares

 


£'000

£'000

 

Authorised share capital at 31 March 2019 and 30 September 2019

45,000

10,000

 




 

 

Allotted, issued and fully paid

 


45p deferred shares

5p ordinary shares



Number

Number

£'000

Issued share capital at 31 March 2019 and 30 September 2019

67,378,520

93,432,217

34,992





 

 

11.   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 2019.

 

12.   Post balance sheet event

 

On 2 October 2019, Jaywing plc announced that entities associated with two of the major shareholders had acquired the Company's existing secured loan facility of £5.2m owed to Barclays Bank plc.  The major shareholders immediately provided the Company with additional secured facilities by increasing the Jaywing facility by £3.0m to £8.2m, which enabled the Company to repay its outstanding overdraft and provided it with additional working capital.

 

 

 


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