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Servoca PLC (SVCA)

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Tuesday 12 December, 2017

Servoca PLC

Preliminary Unaudited Results

RNS Number : 0230Z
Servoca PLC
12 December 2017
 

 

 

SERVOCA Plc

("Servoca" or the "Group")

 

Preliminary unaudited results

for the year ended 30 September 2017

 

 

Highlights

 

·     Revenue £80.2m (2016: £69.2m), an increase of 15.9%

 

·     Gross profit £19.7m (2016: £18.6m), an increase of 5.9%

 

·     Adjusted EBITDA* £4.4m (2016: £3.9m), an increase of 12.8%

 

·     Adjusted profit before taxation* £3.9m (2016: £3.5m), an increase of 11.4%

 

·     Profit before taxation unchanged from prior year at £2.9m (2016: £2.9m)

 

·     Cash generated from operations before tax in the year was £2.7 million (2016: £2.3 million)

 

·     Adjusted basic EPS of 2.56p* (2016: 2.25p), an increase of 13.8%

 

·     Dividend of 0.40p per share (2016: 0.35p), an increase of 14.3%

 

* Before share based payment charges, amortisation of intangible assets and contingent consideration totalling £1.0m (2016: £0.7m).

 

 

Andy Church, CEO, commented:-

 

These results represent another very positive year of progress and build on our consistent improvement over recent years. All five of the business areas through which we manage the Group saw an increase in revenues and our Outsourcing operations enjoyed a significant improvement in operating profits. The performance of the Group continues to benefit from its diversified business mix. We are again pleased to be able to declare an increased dividend payment for the year-end, which our strong financial performance enables us to do. Our performance over the last year means we continue to face the future with confidence.

 

For further enquiries:

 

Servoca Plc

Andrew Church, CEO                                                                                      020 7747 3030

               

N+1 Singer

Alex Price (Corporate Finance)                                                                     020 7496 3000

Michael Taylor (Corporate Broking)

 

Newgate Communications

Bob Huxford/James Ash                                                                                 020 7653 9850

 

 

Chairman / CEO Review and Strategic Report

 

Introduction

We are pleased to report that for the year ended 30 September 2017 we have delivered another year of improved performance for the Group. Revenue and adjusted pre-tax profits achieved double-digit growth over prior year and continue to evidence the resilience of the Group's business mix.

 

Both our Recruitment and Outsourcing operations delivered revenue growth and improved adjusted profitability over prior year with the biggest increase in operating profit coming from our Outsourcing businesses.

 

Our Security business benefited from the combined impact of sales growth and action taken at the end of the prior year to reduce overheads. It has therefore seen a substantial increase in operating profits. As reported in our Interim statement, our Domiciliary Care business had made good progress in the first half and was well positioned for the full year.  We are pleased to report that this progress accelerated in the second half helping to deliver a significant improvement in financial performance over prior year.

 

Our Recruitment operations all delivered increased revenue with the improvement to profitability being led by our Health and Social Care business and our Criminal Justice division. Our recruitment services into the NHS and parts of the Education market faced a more challenging year. It is therefore particularly pleasing to see adjusted operating profits continue to move forward in the Recruitment operation despite these challenges.

 

The Group's strong financial performance enables the Board to propose a dividend of 0.40p per share for the year end (2016: 0.35p), an increase of 14.3% over the prior year.

 

The Board also intends to continue the current policy of buying back the Group's shares, in particular at recent price levels, which the Board thinks fail to fairly represent the value of the company. Our strong balance sheet and operating cash flow enable us to continue to do so for the foreseeable future.

 

 

Financial review

Group revenue was £80.2 million compared with £69.2 million (2016), an increase of 15.9 %. Gross profit for the year was £19.7 million against £18.6 million (2016), an increase of 5.9%.

 

Adjusted EBITDA* increased to £4.4 million (2016: £3.9 million), an increase of 12.8%. Unadjusted EBITDA was £3.4m (2016: £3.3m).

 

Adjusted profit before taxation* was £3.9 million (2016: £3.5 million), an increase of 11.4%. Unadjusted profit before taxation was £2.9m (2016: £2.9m).

 

Adjusted profit after taxation* was £3.2 million (2016: £2.8 million), an increase of 14.3%. Unadjusted profit after taxation was £2.2m (2016: £2.1m).

 

Adjusted basic earnings per share* were 2.56p compared with 2.25p (2016), an increase of 13.8%. Unadjusted basic earnings per share were 1.74p (2016: 1.71p).

 

 * Before share based payment charges, amortisation of intangible assets and contingent consideration totalling £1.0m (2016: £0.7m).

 

Cash generated from operations was £2.7 million (2016: £2.3 million)

 

Net debt decreased by £0.1 million from £2.4 million at 30 September 2016 to £2.3 million at 30 September 2017. The principal differences between cash generated from operations of £2.7 million and the £0.1 million decrease in net debt were corporation tax payments of £1.0 million, the purchase of property, plant and equipment of £0.7m, the 2016 final dividend of £0.4 million and £0.3 million in respect of the purchase of own shares.

 

The dividend of 0.40p per share will be paid on 9th February 2018 to shareholders on the register on 5 January 2018. The associated ex-dividend date is 4 January 2018.

 

 

Operational highlights

 

Strategy and delivery

The focus in the period has remained the development of the Group's capabilities in those areas that afford good growth opportunities. We would like to thank all of our employees for their excellent contribution to another successful year.

 

 

Outsourcing

Our outsourcing activities are primarily based in two areas; Domiciliary Care and Security. Combined revenues from these areas were up 17% on prior year and accounted for 21% of Group revenues.

 

Our Security business increased revenues by 14% and gross profit by 8% over the prior year. Combined with previous action taken to yield a more efficient overhead base, this produced a substantial improvement in operating profit.

 

Growth was led by our Manned Guarding and Electronic security offerings. As referenced in our Interim Statement, both of these areas secured substantial additional work towards the end of the prior year that we have seen material benefit from during the year under report.

 

The growth in our Electronics division is largely attributable to the substantial expansion of an existing contract. The contract involves the deployment of a unique software solution for loss prevention in the retail industry. The client is a major national UK grocery retailer that has deployed the product for several years in a sizeable number of their stores. Having carefully monitored the results and return on investment during this period, the client has committed to a significant expansion into what is expected to be a majority of their store estate over the next few years.

 

 

Our Domiciliary Care business increased revenues by 19% and gross profit by 12% over the prior year and this has also led to a substantial improvement in their operating profit.

 

In our Interim Statement for the six months ended 31 March 2017, we reported that our Domiciliary Care business had enjoyed a better start to the year and that results were ahead of the same period in the prior year. We are pleased to report that this progress has accelerated in the second half with revenues and gross profit both 18% higher than in the first half. The second half has benefitted from the implementation of some meaningful new contract wins that were secured earlier in the year.

 

This year has seen the start of action that recognizes the sector had to receive additional funding in order for critical health and social care services to remain viable. There have been well documented pressures on providers' costs in recent years (including increases to the National Living Wage, Pension Auto-Enrolment and Apprenticeship Levy costs) and equally well documented funding constraints that have resulted in static or declining charge rates. There is also increasing recognition that a failure to adequately fund care in the community only increases the financial and resource burden placed upon the NHS in hospital settings or elsewhere. The adult social care precept has been one step towards generating additional funding and our experience during the year under report has been that the majority of commissioning authorities have increased fee rates in line with increases to statutory costs.

 

We have always managed costs tightly in this business area and retained a focus on only those supply arrangements that we believed were sustainable. We continue to adopt this philosophy and this has given us a solid foundation for profitable growth. The new contract wins are consistent with these principles and are therefore delivering a positive impact on operating profits.

 

 

Recruitment

Our recruitment businesses supply into the Education, Healthcare and Criminal Justice markets. Combined revenues from these areas were up 16% on prior year and accounted for 79% of Group revenues.

 

Our Healthcare recruitment division has enjoyed another year of significant growth over prior year, increasing revenues by 16% and gross profits by 11%. This also led to the most significant improvement to prior year operating profits of any area of the Group.

 

It is important to understand that our services in this area operate in two distinct markets through separate subsidiary brands. Servoca Nursing and Care supplies temporary resource to the Health and Social Care market, which is almost exclusively within the private sector, whilst Firstpoint Healthcare supplies Nursing and Care professionals into the NHS. This distinction continues to prove important as, whilst revenues increased in both areas, gross profit and adjusted operating profit growth came entirely from our Health and Social Care supply.

 

As previously reported, the NHS supply has faced significant challenges, largely as a result of previously imposed agency price caps and a focus on reducing agency spend. This has been compounded in the second half of this year by reforms to IR35 and the use of personal service companies in the public sector.  In response to these challenges and the margin pressure that resulted, we have focused efforts on increasing volumes of supply in an efficient manner to protect profitability. This has included the restructure of support operations and the establishment of a low cost offshore capability. It is therefore pleasing that we have increased revenues over prior year and seen only a relatively modest reduction in profitability.

 

Our Health and Social Care business has enjoyed a great year and built on a strong start to deliver revenue and gross profit growth of almost 30% over prior year. This has led to a substantial improvement in adjusted operating profits. The business has maintained good momentum during the second half and over the course of the year has increased the weekly gross profit run rate by 25% and the volume of weekly hours supplied by over 23%. We also opened a new branch in the second half of the year.

 

Our Health and Social Care business accounted for approximately two thirds of all operating profit within our Healthcare recruitment operations.

 

As reported in our Interim statement, our Education recruitment business had seen increased revenues but reduced gross profit and this has remained the case for the full year. Revenues in this area were up 3% but gross profit was down 3%, leading to reduced operating profits over prior year.

 

Performance within this business shows distinct variances with our Regional offices seeing increased operating profits but our largest London facing operation materially down. This has impacted Permanent Fee Income as the majority comes from supply into the London and Home Counties areas.

 

Demand continues to outstrip supply despite the budget pressures faced by schools and there remains an acute shortage of qualified teachers. This shortage is evidenced by our successful appointment as one of only six suppliers to a major international recruitment framework being run by the Department for Education. This framework has been developed to try and recruit 1,200 additional Maths and Science teachers over the next 4 years. This initiative is set to deliver a positive impact on our Permanent Fee Income and builds on the investment we have made in prior years in our International sourcing capabilities.

 

We continue to develop our branch network where appropriate opportunity is identified and have taken action to strengthen management in London facing operations that has started to make a positive impact in the current year.

 

Our Criminal Justice business delivered a material improvement over prior year with revenues up 50% and gross profits 23% higher. This led to a substantial improvement in its operating profits.

 

As previously reported, this business has benefitted from a significant contract win for the supply of temporary probation staff towards the end of the prior year. Delivery into the contract has successfully continued to build throughout the year and has helped contribute towards the significant improvement in its revenues and profit over prior year.

 

 

Outlook

 

The balanced and diversified nature of the Group continues to provide growth opportunities. We anticipate that opportunities available to our Education, Health and Social Care and Domiciliary Care businesses in particular will offset current challenges in the area of NHS supply. We therefore continue to be confident about our future.

 

 


 

 

 

 

 

John Foley                                                                                                       Andrew Church

Non Executive Chairman                                                                              Chief Executive Officer

                                                                                                                                      

Consolidated statement of comprehensive income

For the year ended 30 September 2017

 

 

 

 

 

Before

 Amortisation,

share based

payments and contingent consideration

(unaudited)

2017

 

Amortisation,

share based payments and contingent consideration

(see note 6)

(unaudited)

 

 

 

 

 

 

 

Total

(unaudited)

 

 

 

Before

Amortisation,

share based

payments and contingent consideration

(audited)

2016

 

Amortisation,

share based

payments and contingent consideration

(se note 6))

(audited)

 

 

 

 

 

 

 

Total

(audited)

 

Note

 

£'000

£'000

£'000

 

£'000

£'000

£'000

Continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

4

 

80,152

-

80,152

 

69,234

-

69,234

Cost of sales

 

 

(60,493)

-

(60,493)

 

(50,593)

-

(50,593)

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

19,659

-

19,659

 

18,641

-

18,641

 

 

 

 

 

 

 

 

 

 

Administrative expenses

 

 

(15,669)

(1,018)

(16,687)

 

(15,026)

(665)

(15,691)

 

 

 

 

 

 

 

 

 

 

Operating profit

 

 

3,990

(1,018)

2,972

 

3,615

(665)

2,950

 

 

 

 

 

 

 

 

 

 

Finance costs

 

 

(95)

-

(95)

 

(77)

-

(77)

 

 

 

 

 

 

 

 

 

 

Profit before taxation

 

 

3,895

(1,018)

2,877

 

3,538

(665)

2,873

Tax charge

 

 

(724)

-

(724)

 

(740)

-

(740)

Total comprehensive income for the year, net of tax, attributable to owners of the parent

 

 

 

 

 

 

3,171

 

 

(1,018)

 

 

2,153

 

 

 

2,798

 

 

(665)

 

 

2,133

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

Pence

Pence

Pence

 

Pence

Pence

Pence

 

 

 

 

 

 

 

 

 

 

- Basic

5

 

2.56

(0.82)

1.74

 

2.25

(0.54)

1.71

 

 

 

 

 

 

 

 

 

 

- Diluted

5

 

2.53

(0.82)

1.71

 

2.22

(0.53)

1.69

 

Consolidated statement of financial position

As at 30 September 2017

 

 

 

 

 

30 September

2017

(unaudited)

 

 

30 September

2016

(audited)

 

Note

 

 

£'000

 

£'000

Assets

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Intangible assets

 

 

 

8,907

 

8,954

Property, plant and equipment

 

 

 

1,153

 

829

 

 

 

 

 

 

 

Total non-current assets

 

 

 

10,060

 

9,783

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Trade and other receivables

 

 

 

14,705

 

12,842

Inventories

 

 

 

269

 

222

Cash and cash equivalents

8

 

 

579

 

342

 

 

 

 

 

 

 

Total current assets

 

 

 

15,553

 

13,406

 

 

 

 

 

 

 

Total assets

 

 

 

25,613

 

23,189

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

 

 

(6,880)

 

(5,807)

Corporation tax payable

 

 

 

(839)

 

(1,127)

Other financial liabilities

 

 

 

(2,915)

 

(2,745)

 

 

 

 

 

 

 

Total current liabilities

 

 

 

(10,634)

 

(9,679)

 

 

 

 

 

 

 

Total net assets

 

 

 

14,979

 

13,510

 

Capital and reserves attributable to equity owners of the company

 

 

 

 

 

 

Called up share capital

7

 

 

1,256

 

1,256

Share premium account

 

 

 

202

 

202

Merger reserve

 

 

 

2,772

 

2,772

Reverse acquisition reserve

 

 

 

(12,268)

 

(12,268)

Retained earnings

 

 

 

23,017

 

21,548

 

 

 

 

 

 

 

Total equity

 

 

 

14,979

 

13,510

 

 

Consolidated statement of cash flows

As at 30 September 2017

 

 

2017

(unaudited)

 

2016

(audited)

 

Note

£'000

 

£'000

Operating activities

 

 

 

 

Profit before tax

 

2,877

 

2,873

Adjustments to reconcile profit before tax to net cash flows:

 

 

 

 

Depreciation and amortisation

 

453

 

381

Share based payments

 

63

 

63

Finance costs

 

95

 

77

Increase in inventories

 

(47)

 

(119)

Increase in trade and other receivables

 

(1,863)

 

(882)

Increase/(decrease) in trade and other payables

 

1,139

 

(72)

 

 

 

 

 

Cash generated from operations

 

2,717

 

2,321

 

 

 

 

 

Corporation tax paid

 

(1,012)

 

(466)

 

 

 

 

 

Cash flows from operating activities

 

1,705

 

1,855

 

 

 

 

 

Investing activities

 

 

 

 

Acquisitions, net of cash acquired

 

-

 

(1,123)

Deferred consideration paid

 

(66)

 

(805)

Purchase of property, plant and equipment

 

(730)

 

(424)

 

Net cash flows used in investing activities

 

 

(796)

 

 

(2,352)

 

 

 

 

 

Financing activities

 

 

 

 

Interest paid

 

(95)

 

(77)

Dividend paid

 

(435)

 

(374)

Net purchase of shares held in treasury

 

(312)

 

(276)

 

Net cash flows used in financing activities

 

 

(842)

 

 

(727)

 

 

 

 

 

Increase/(decrease) in cash and cash equivalents

 

67

 

(1,224)

 

Cash and cash equivalents at beginning of the year

 

 

(2,403)

 

 

(1,179)

 

 

 

 

 

Cash and cash equivalents at end of the year

8,9

(2,336)

 

(2,403)

 

 

 

 

 

 

 

 

 

 

 

Notes to the preliminary financial statements

For the year ended 30 September 2017

 

 

1      Financial information

The preliminary financial information for the full year ended 30 September 2017 does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

 

The financial information for the year ended 30 September 2017 is unaudited. The comparative figures for the year ended 30 September 2016 are audited but are not the full statutory accounts for the year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors have reported on those accounts; their reports were unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under Section 498 of the Companies Act 2006.

 

2      Basis of preparation and accounting policies

 

The preliminary financial statements have been prepared using the recognition and measurement principles of IFRS as endorsed for use in the European Union.

 

The accounting policies adopted in the preparation of this preliminary financial information are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 30 September 2016 and no new standards or interpretations that have come into effect in the year have had a material impact on the results of the business.

 

3      Adjustments in respect of prior period results

The acquisition of subsidiaries in prior years gives rise to an obligation to pay contingent consideration based on future earnings. The Group is therefore required to make an estimate at each year end of the amount of contingent consideration payable and to reflect this within the financial statements. In the prior year, the Group accounted for contingent consideration on the basis of cash payments made in the year. In the year ended 30 September 2017 the Group has accounted for contingent consideration on an accruals basis. As a consequence, the results for the year ended 30 September 2016 include a prior year adjustment to increase contingent consideration payable by £541,000 and to decrease profit for that financial year by the same amount. The retained earnings have decreased by £541,000 and trade and other payables has increased by the same amount as at 30 September 2016. The effect on the basic earnings per share is to decrease it from 2.15p to 1.71p. The adjustment reflects timing differences only and will have no impact on the overall charge in respect of contingent consideration for the acquisitions concerned.

 

4      Segmental analysis

The Group's primary format for reporting segment information is by business segment, being by type of service supplied. The operating divisions are organised and managed by reporting segment where applicable and by divisions within a reporting segment where necessary. This information is provided to the Board of Directors.

 

The Outsourcing segment provides services to the Domiciliary Care and Security sectors.

 

 

The Recruitment segment provides recruitment services to the Healthcare, Education and Police sectors.

 

2017

 

Outsourcing

Recruitment

Unallocated

Total

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Revenue

 

17,225

62,927

-

80,152

 

 

 

 

 

 

Segment expense

 

(16,608)

(57,927)

(1,627)

(76,162)

 

 

 

 

 

 

Operating profit/(loss) before amortisation, share based payment expense and contingent consideration

 

 

 

 

617

 

 

 

5,000

 

 

 

(1,627)

 

 

 

3,990

 

Amortisation, share based payment expense and contingent consideration

 

 

 

(52)

 

 

(934)

 

 

(32)

 

 

(1,018)

 

 

 

 

 

 

Operating profit/(loss)

 

565

4,066

(1,659)

2,972

Finance costs

 

(31)

(64)

-

(95)

 

 

 

 

 

 

 

534

4,002

(1,659)1

2,877

 

 

 

 

 

 

Statement of financial position

 

 

 

 

 

Assets

 

6,935

17,554

1,124

25,613

Liabilities

 

(3,018)

(7,025)

(591)

(10,634)

 

 

 

 

 

 

 

3,917

10,529

533

14,979

Other

 

 

 

 

 

Capital expenditure

 

99

139

492

730

Depreciation

 

145

100

161

406

 

42

5

-

7

 

The majority of the Group's customers and assets are located in the UK and therefore it does not report by geographical location. There is no inter-segment revenue.

 

  

4      Segmental analysis (continued)

2016

 

Outsourcing

Recruitment

Unallocated

Total

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Revenue

 

14,786

54,448

-

69,234

 

 

 

 

 

 

Segment expense

 

(14,646)

(49,658)

(1,315)

(65,619)

 

 

 

 

 

 

Operating profit/(loss) before amortisation, share based payment expense and contingent consideration

 

 

 

 

140

 

 

 

4,790

 

 

 

(1,315)

 

 

 

3,615

 

Amortisation, share based payment expense and contingent consideration

 

 

 

(52)

 

 

(581)

 

 

(32)

 

 

(665)

 

 

 

 

 

 

Operating profit/(loss)

 

88

4,209

(1,347)

2,950

Finance costs

 

(23)

(54)

-

(77)

 

 

 

 

 

 

 

65

4,155

(1,347)1

2,873

 

 

 

 

 

 

Statement of financial position

 

 

 

 

 

Assets

 

5,904

16,478

807

23,189

Liabilities

 

(2,907)

(6,262)

(510)

(9,679)

 

 

 

 

 

 

 

2,997

10,216

297

13,510

Other

 

 

 

 

 

Capital expenditure

 

63

1,245

305

1,613

Depreciation

 

144

82

108

334

 

42

5

-

47

[1] The profit for each operating segment does not include holding company director costs, group legal costs, central share based payment charges or a share of central property costs.

 

5      Earnings per share

The calculation of earnings per share is based on a weighted average number of shares in issue during the year of:

 

 

 

 

Basic

Dilutive effect of

share options and shares to be issued

 

 

Diluted

 

 

 

 

 

30 September 2017

 

123,802,686

1,800,658

125,603,344

30 September 2016

 

124,509,189

1,834,340

126,343,529

 

Basic earnings per share are calculated by dividing the net profit for the year attributable to the equity holders of the parent by the weighted average number of ordinary shares outstanding during the year excluding ordinary shares purchased by the Company and held as treasury shares.

 

5       Earnings per share (continued)

Additional disclosure is also given in respect of adjusted earnings per share before amortisation of intangible assets, share based payments and contingent consideration as the directors believe this gives a more accurate presentation of maintainable earnings.

 

Year ended 30 September 2017

 

Basic

Diluted

 

 

£'000

£'000

 

 

 

 

Profit for the year

 

2,153

2,153

Amortisation, share based payment expense and contingent consideration:

 

 

 

Amortisation of intangible assets

 

47

47

Share based payment expense

 

63

63

Contingent consideration

 

908

908

 

 

 

 

Profit before amortisation, share based payments and contingent consideration

 

 

3,171

 

3,171

 

 

 

 

 

 

Pence

Pence

 

 

 

 

Earnings per share

 

1.74

1.71

Amortisation, share based payment expense and contingent consideration:

 

 

 

Amortisation of intangible assets

 

0.04

0.04

Share based payment expense

 

0.05

0.05

Contingent consideration

 

0.73

0.73

 

 

 

 

Adjusted earnings per share before amortisation, share based payments and contingent consideration

 

 

2.56

 

2.53

 

6      Amortisation, share based payments and contingent consideration

 

 

2017

£'000

2016

£'000

 

 

 

 

Amortisation of intangible assets

 

47

47

Share based payments

 

63

63

Contingent consideration/costs of acquisitions

 

908

555

 

 

 

 

 

 

1,018

665

 

 

 

7       Called up share capital

 

 

30

September

2017

Number

'000

30

September

2017

 

£'000

 

30

September

2016

Number

'000

30

September

2016

 

£'000

Allotted, issued and fully paid:

 

 

 

 

 

 

New Ordinary shares of 1p each

 

125,575

1,256

 

-

-

Ordinary shares of 1p each

 

-

-

 

125,575

1,256

 

 

 

 

 

 

 

 

 

125,575

1,256

 

125,575

1,256

 

Movements in issued share capital

 

 

 

Ordinary shares

of 1p each

Number '000

 

 

Ordinary shares of 1p each £'000

Consolidated

ordinary shares of £20 each

Number

'000

 

Consolidated

ordinary shares of £20 each

 £'000

New ordinary shares of 1p each

Number

'000

 

New

ordinary

Shares of 1p each

£'000

Issued:

 

 

 

 

 

 

 

In issue at 1 October 2016

 

125,575

1,256

-

-

-

-

Consolidation (see below)

 

(125,575)

(1,256)

63

1,256

-

-

Subdivision (see below)

 

-

-

(63)

(1,256)

125,575

1,256

In issue at

30 September 2017

 

 

-

 

-

 

-

 

-

 

125,575

 

1,256

 

During August 2017, the Company carried out a share reorganisation in order to reduce the number of small shareholders and offer those shareholders holding 2,000 or less shares in the Company an option to sell their holdings back to the Company.

On 15 August, all the 1 pence Existing Ordinary Shares of the Company were consolidated into one £20 Consolidated Ordinary Share on the basis of one Consolidated Ordinary Share for each 2,000 Existing Ordinary Shares. The Company offered to purchase any resulting fractional entitlements to the Consolidated Shares from the existing shareholders.

After completion of the sale and purchase of the fractional entitlements from the small shareholders, these Consolidated Shares of £20 each were subdivided into 2,000 New Ordinary Shares of 1 pence each. These New Ordinary Shares have the same rights and are subject to the same restrictions as the existing Ordinary 1 pence shares before the reorganisation.

As a result of this reorganisation, the Company purchased 154,656 shares for a total consideration of £36,727 which represented 1,047 small shareholders from the pre-reorganisation number of 1,203.

 

During the year the Company acquired 1,270,946 of its own shares for £312,311 (including the 154,656 mentioned above) (2016: acquired 1,149,038 for £276,376) and transferred none of its own shares at nominal value (2016: 250,000). These amounts have been deducted from retained earnings within shareholders' equity. The number of shares held as "treasury shares" at the year end was 2,630,084 which represented 2.09% of the called up share capital of the Company (2016: 1,359,138 representing 1.08%). The Company has the right to re-issue these shares at a later date. The maximum number of treasury shares held during the year was 2,630,084 (2016: 1,359,138).

 

 

 

 

8       Cash and cash equivalents

 

 

30 September

2017

30 September

2016

 

 

£'000

£'000

 

 

 

 

Cash available on demand

 

579

342

Invoice discounting facilities

 

(2,915)

(2,745)

 

 

 

 

 

 

(2,336)

(2,403)

 

 

 

 

Cash and cash equivalents at beginning of year

 

(2,403)

(1,179)

 

 

 

 

Net increase/(decrease) in cash and cash equivalents

 

67

(1,224)

 

9       Net debt

 

 

As at 1

October

2016

 

 

Cash flow

 

Non cash

movement

As at 30

September

2017

2017

 

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Cash and cash equivalents

 

(2,403)

67

-

(2,336)

 

10     Annual General Meeting

The Annual General Meeting of Servoca Plc will be held at the Company's head office at Audrey House, 16-20 Ely Place, London, EC1N 6SN on 30 January 2018 at 2pm.  It is expected that the Report and Accounts along with Notice of Meeting will be mailed to shareholders prior to 30 December 2017. The Financial Statements will be sent to the Registrar following the Annual General Meeting.

 


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