Information  X 
Enter a valid email address

Waterman Group PLC (WTM)

  Print      Mail a friend       Annual reports

Friday 28 February, 2014

Waterman Group PLC

Half Yearly Report

RNS Number : 0928B
Waterman Group PLC
28 February 2014
 



WATERMAN PERFORMING IN LINE WITH FORECAST

AS DIVIDEND DOUBLES

 

Waterman Group plc, the international engineering and environmental consultancy, today announces its interim results for the six months to 31 December 2013.

 

 

 Highlights for Continuing Operations

 

HY14

 unaudited

 

HY13

unaudited

·    Revenue 

 

£34.0m

£31.4m

 

·    Earnings before interest, tax, depreciation, amortisation and exceptional items

 

·    Profit before tax

 

 

£1.0m

 

 

£0.6m

£0.7m

 

 

£0.1m

·    Adjusted profit before tax *

 

 

£0.7m

  £0.5m

·    Basic earnings/(loss) per share

 

 

1.0p

(0.3p)

 

·    Adjusted earnings per share *

 

1.3p

0.8p

 

 

 

 

·    Interim dividend per share

 

0.4p

0.2p

 

·    Net funds increased since 30 June 2013 by 43% to £1.6m (30 June 2013: £1.1m).

 

·    Improving conditions in the UK property sector which remains the Group's largest market.

 

·    Performance has benefited from the decisive action taken to restructure overseas activities leading to the Group's withdrawal from United Arab Emirates and Russia.

 

·    Interim dividend increased by 100% as the Group moves towards its target to reduce dividend cover towards two times over the economic cycle.

 

·    The Group remains on course to achieve its target of tripling adjusted profit before tax over the next three years.

 

*Adjusted for amortisation of acquired intangible assets and exceptional items.

 

Commenting on the results, Nick Taylor, Chief Executive said:-

 

" The period has seen trading conditions and confidence improve in our core UK markets.  Our UK businesses grew revenue by 18% and now represent 84% of the Group."

 

"Waterman has continued to generate an improving trend in its financial performance. The recent strategic restructuring of the Group will enable Waterman to capitalise on improving conditions in its established markets where it enjoys longstanding client relationships.  We are confident that our strategy over the next three years will deliver significant improvements in its results and generate increasing returns for our shareholders."

 

-ends-

Date:   28 February 2014

 

For further information please contact:

Waterman Group plc                                           Broker Profile                            N+1 Singer

Nick Taylor, Chief Executive                                Simon Courtenay                       Sandy Fraser

Alex Steele, Finance Director                              Tamsin Shephard                       020-7496-3178  

020-7928-7888                                                    020-7448-3244

www.watermangroup.com

 

INTERIM MANAGEMENT REPORT

 

We are now in the first year of a three year plan to drive a sustainable improvement in our financial performance.  It is pleasing to report that the Group has made good progress towards the target to triple adjusted profits before tax over the three year period.

 

As a result of the decisive action taken to restructure our overseas activities leading to the Group's withdrawal from the United Arab Emirates and Russia the Group generated 84% of its revenue from the UK in the period.  Our workload in London and the regions has continued to grow and in order to meet this demand we have reinforced our recruitment activity which has resulted in a 5% increase in the number of our engineers and environmental consultants to 1,041 since 1 July 2013.

 

Overall, this represents significant progress towards our strategic objectives and it is appropriate to reflect our increased confidence in the Group's future performance.  Therefore, the Board has decided to announce a doubling of the interim dividend to 0.4p (2013: 0.2p). 

 

 

Markets

 

The Group's strategy to focus primarily on the more established markets and longstanding client relationships in the UK will be the main driver for future growth. This will be supplemented by our operations in Australia, Ireland and Poland.

 

We continue to experience increased demand for our services from the residential and commercial sectors.  In addition, the retail sector is becoming more buoyant as developers progress their projects through the early planning phases, with revenue anticipated to increase during 2015 as developments move towards the tender and construction phase.

 

The London property markets remain very strong.  Encouragingly in recent months we have experienced more activity outside London, particularly in the residential and retail sectors. 

 

In the Public Sector, our outsourcing operations have experienced significant growth in the number of highways and transportation engineers on secondment to Borough and City Councils in the UK regions.

 

Overseas, our offices in Melbourne and Sydney in Australia continue to experience low levels of activity from both the private and public property sectors.  In Ireland and Poland the economic situation has improved over the last six months and we remain optimistic about future development opportunities, particularly in Dublin and the surrounding residential areas.

 

 

Strategic Initiatives

 

Significant progress has been made towards achieving our three year strategic targets to deliver strong results and generate increasing returns for our shareholders. 

 

We are gaining a greater market share driven by our longstanding client relationships and acknowledged design excellence and we are expanding to meet this increased demand. 

 

The Group has continued to reduce its exposure to markets which the Board believes can no longer provide us with the prospect of adequate returns in the medium term.

 

In July 2013, we commenced the withdrawal from the United Arab Emirates and by the end of January 2014 we had no employees remaining in the region. The costs and cash flows associated with the wind down of operations are currently in line with management expectations.

 

In December 2013, the Group announced a rationalisation of reporting lines and the appointment of joint Chief Operating Officers to drive growth in our main markets of Property & Infrastructure, Environment and Energy.  Our immediate and important focus is to return our Civil & Transportation regional businesses back to at least a break even position through increased workload and reorganisation of resources and then to an acceptable level of profitability. 

 

On 14 January 2014, the Board implemented the second phase of the restructuring of the Group's overseas operations and commenced the withdrawal from Russia.  Having reported an operating loss of £88k in the first half, we currently anticipate that in the financial year to 30 June 2014 we will incur a loss from Discontinued Operations in Moscow of around £1.9m, with a cash outflow of around £1.3m after anticipated receipts associated with the orderly wind down of operations and financial settlements in respect of debtors and work in progress.

 

 

Results

 

Revenue from Continuing Operations was £34.0m (2013: £31.4m), up 8%.

 

Adjusted*pre tax profit before exceptional items was £0.7m (2013: £0.5m), up 40%.

 

*Excludes amortisation of acquired intangible assets £7k (2013: £207k) and exceptional items £113k (2013: £189k).

 

The loss from Discontinued Operations in the United Arab Emirates was £1.7m (2013: £2k).

 

The basic earnings per share from Continuing Operations was 1.0p (2013: 0.3p loss). Adjusted earnings per share from Continuing Operations before amortisation of acquired intangible assets and exceptional items was a profit of 1.3p (2013: 0.8p).

 

As at 31 December 2013, net assets per share were 98p (2013: 109p) and net funds were £1.6m (31 December 2012: £0.2m, 30 June 2013: £1.1m).

 

 

Business Reviews

 

United Kingdom

 

 

Segment

H1  FY14

H1  FY13

Revenue

 

£'000

Operating profit/(loss) *

£'000

Margin

Revenue

 

£'000

Operating profit/(loss) *

£'000

Margin

Structures

7,037

657

9.3%

5,748

542

9.4%

Building Services

3,545

229

6.5%

2,487

19

0.8%

Property

10,582

886

8.4%

8,235

561

6.8%

Energy, Environment & Design

4,009

310

7.7%

3,313

274

8.3%

Civil & Transportation

13,853

(583)

(4.2%)

12,544

(139)

(1.1%)

Total

28,444

613

2.2%

24,092

696

2.9%

 

* Before amortisation of acquired intangible assets and exceptional items.

 

The UK has delivered an 18% growth in revenue, from £24,092k to £28,444k, with operating profit reducing by 12% to £613k due to increased losses in the Civil & Transportation business.

 

As anticipated, the Property building design teams in Structures and Building Services have continued to expand, delivering a 29% growth in revenue to £10,582k and a 58% increase in operating profit to £886k. Encouragingly, the margins delivered by Building Services are returning to more normal levels as projects move forward to construction and as utilisation increases.

 

The Energy, Environment & Design teams have continued to experience growth, particularly from London clients requiring Environmental Impact Assessments where we are one of the leading technical planning consultants.  Mainly reliant on the property sector, an important aspect of our strategy is to expand our teams into the Public Sector to provide greater diversity of workload and clients.

 

The Civil & Transportation teams have continued to struggle to gain traction as 85% of their resource is located outside the buoyant London region.  As announced on 23 December 2013, the Civil & Transportation and Energy, Environment & Design teams will work within the Infrastructure, Environment & Energy segment.  The inaugural Chief Operating Officer is Neil Humphrey, currently MD of the Energy, Environment & Design business segment. 

 

The integration of the businesses and streamlined management structure will enable the civil engineering and environmental teams to better focus together on new and existing markets with an emphasis on returning over time to profitability and significantly improving the return on capital employed. 

 

 

Overseas

 

 

Segment

(Continuing operations)

H1  FY14

H1  FY13

Revenue

 

£'000

Operating profit/(loss)*

£'000

Margin

Revenue

 

£'000

Operating profit/(loss)*

£'000

Margin

Multidiscipline Structures & Building Services (Property)

5,518

150

2.7%

7,273

(183)

(2.5%)

Due to non-controlling interests

1,574

169

10.7%

1,884

157

8.3%

Waterman shareholders

3,944

(19)

(0.5%)

5,389

(340)

(6.3%)

Australian business contribution

1,984

118

5.9%

2,687

84

3.1%

Wholly owned businesses

1,960

(137)

(7.0%)

2,702

(424)

(15.7%)

 

* Before amortisation of acquired intangible assets and exceptional items.

 

The United Arab Emirates has been reported separately as a Discontinued Operation.

 

Following the prior year's withdrawal from China and the integration of the London based international team into our UK Structures and Building Services teams, the International segment, as anticipated, has returned to profitability, albeit on a reduced level of turnover.

 

Our businesses in Australia, Ireland and Poland have generated an operating profit which has been partially offset by losses of £88k in Russia resulting from lower levels of work and utilisation following the conclusion of several development projects.  It is anticipated that Russia will be treated as a Discontinued Operation in the financial year to 30 June 2014.

 

In Australia, our teams are currently involved in several commissions in the residential, healthcare and judicial sectors.  Over the last year there has been a more competitive environment amongst consultants and we anticipate that this will continue for the foreseeable future. 

 

Our office in Dublin has continued to provide technical support to several overseas investors purchasing development sites in the city which are likely to proceed at some stage through the planning process and construction.  We are currently transferring work from London to Dublin to increase utilisation in the Dublin office until local work materialises on new projects.

 

All our overseas operations specialise in building design involving Building Services and Structural engineering.  Following the recent restructure these businesses will form part of the Property segment thereby improving communication and increasing the ability to share clients and resources.

 

The inaugural Chief Operating Officer is Craig Beresford, currently MD of the Structures business segment in the UK. 

 

Dividend

 

In line with the Group's strategy to increase shareholder returns, the Board has decided to double the dividend to 0.4p per share (2013: 0.2p) payable on 18 April 2014 to shareholders on the register on 21 March 2014.

 

Board

 

As part of the restructuring announced on 23 December 2013, Simon Harden and John Waiting have stepped down from the Board and will leave Waterman on 31 March 2014 to pursue other interests.

 

I would like to thank both Simon and John for their significant contribution to the Board over many years.

 

Outlook

 

Waterman has a strong brand based on longstanding relationships between our clients and our engineers and environmental consultants.  As opportunities continue to increase we aim to gain a greater market share through our reputation, ability to deliver and the trust of our clients. Waterman's strong market position and provision of a high quality service will enable the Group to maximise future opportunities.

 

The commencement of the three year strategy, business plans and recent actions has given the Group more focus on established sustainable markets and strengthened our ability to deliver our future targets. 

 

We are optimistic about the future which is reinforced by the niche positioning of Waterman within the engineering and environmental consultancy sectors.  Consequently, the Board is confident of the Group's ability to deliver increasing value for our shareholders.

 

 

 

Roger Fidgen

Chairman

28 February 2014

 

 

 

 

 

Independent review report to Waterman Group plc

for the six months ended 31 December 2013

 

Introduction

 

We have been engaged by the Company to review the condensed set of Financial Statements in the Half - Yearly Financial Report for the six months ended 31 December 2013, which comprises the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Cash Flow Statement, Consolidated Statement of Changes in Shareholders' Equity and the Notes to Financial Information. We have read the other information contained in the Half - Yearly Financial Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of Financial Statements.

 

Directors' responsibilities

 

The Half - Yearly Financial Report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Half - Yearly Financial Report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

As disclosed in note 2, the Annual Financial Statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of Financial Statements included in this Half - Yearly Financial Report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

 

Our responsibility

 

Our responsibility is to express to the Company a conclusion on the condensed set of Financial Statements in the Half - Yearly Financial Report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

 

Scope of review         

 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Conclusion

 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of Financial Statements in the Half - Yearly Financial Report for the six months ended 31 December 2013 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

PricewaterhouseCoopers LLP
Chartered Accountants, 1 Embankment Place,

London    WC2N 6RH              

 

28 February 2014

 

Consolidated Income Statement
for the six months ended 31 December 2013
 
 
 
 
 
 
 
Notes
 
 
 
Pre-exceptional items
£’000
 
 
 
Exceptional items
(Note 6)
£’000
 
Unaudited Six months
to 31 December 2013
£’000
 
 
Pre-exceptional items (restated)
£’000
 
 
 
Exceptional items
(Note 6)
£’000
 
Unaudited
Six months to 31 December 2012 (restated)
£’000
 
 
 
 
 
 
 
 
Revenue
4
33,962
-
33,962
31,365
-
31,365
 
 
 
 
 
 
 
 
Employee benefits expense
 
(20,011)
(323)
(20,334)
(19,529)
(96)
(19,625)
Other operating charges
 
(12,974)
210
(12,764)
(11,099)
(93)
(11,192)
Operating expenses
 
(32,985)
(113)
(33,098)
(30,628)
(189)
(30,817)
 
 
 
 
 
 
 
 
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
 
 
977
 
(113)
 
864
 
737
 
(189)
 
548
 
 
 
 
 
 
 
 
Depreciation of property, plant and equipment
11
(172)
-
(172)
(173)
-
(173)
Amortisation of other intangible assets
11
(49)
-
(49)
(258)
-
(258)
Operating profit
 
756
(113)
643
306
(189)
117
 
 
 
 
 
 
 
 
Finance costs
 
(84)
-
(84)
(84)
-
(84)
Finance income
 
21
-
21
39
-
39
Profit before taxation
 
693
(113)
580
261
(189)
72
 
 
 
 
 
 
 
 
Taxation
5
(174)
23
(151)
(67)
24
(43)
Profit after taxation from Continuing operations
 
519
(90)
429
194
(165)
29
 
 
 
 
 
 
 
 
Loss for the period from Discontinued operations
7
(1,734)
-
(1,734)
(2)
-
(2)
 
(Loss) / profit for the financial period
 
 
(1,215)
 
(90)
 
(1,305)
 
192
 
(165)
 
27
 
 
 
 
 
 
 
 
(Loss) / profit attributable to:
 
 
 
 
 
 
 
   Owners of the Parent
 
(1,332)
(90)
(1,422)
78
(165)
(87)
   Non - Controlling interests
 
117
-
117
114
-
114
 
 
(1,215)
(90)
(1,305)
192
(165)
27
 
 
 
 
 
 
 
 
Earnings / (loss) per share from Continuing operations
 
 
 
 
 
 
 
Basic and diluted earnings per share
8
1.3p
(0.3p)
1.0p
0.3p
(0.6p)
(0.3p)
Adjusted and diluted earnings per share
8
1.3p
(0.3p)
1.0p
0.8p
(0.6p)
0.2p
 
 
 
 
 
 
 
 
(Loss) / earnings per share from Continuing and Discontinued operations
 
 
 
 
 
 
 
 
 
Basic and diluted earnings per share
8
(4.3p)
(0.3p)
(4.6p)
0.3p
(0.6p)
(0.3p)
Adjusted and diluted earnings per share
8
(4.3p)
(0.3p)
(4.6p)
0.8p
(0.6p)
0.2p

 

 

 

Consolidated Income Statement
for the six months ended 31 December 2013
 
 
Notes
Pre-exceptional items
£’000
Exceptional items
(Note 6)
£’000
Unaudited Six months
to 31 December 2013
£’000
Pre-exceptional items (restated)
£’000
Exceptional items
(Note 6)
£’000
Unaudited
Six months to 31 December 2012 (restated)
£’000
 
 
 
 
 
 
 
 
Revenue
4
33,962
-
33,962
31,365
-
31,365
 
 
 
 
 
 
 
 
Employee benefits expense
 
(20,011)
(323)
(20,334)
(19,529)
(96)
(19,625)
Other operating charges
 
(12,974)
210
(12,764)
(11,099)
(93)
(11,192)
Operating expenses
 
(32,985)
(113)
(33,098)
(30,628)
(189)
(30,817)
 
 
 
 
 
 
 
 
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
 
 
977
 
(113)
 
864
 
737
 
(189)
 
548
 
 
 
 
 
 
 
 
Depreciation of property, plant and equipment
11
(172)
-
(172)
(173)
-
(173)
Amortisation of other intangible assets
11
(49)
-
(49)
(258)
-
(258)
Operating profit
 
756
(113)
643
306
(189)
117
 
 
 
 
 
 
 
 
Finance costs
 
(84)
-
(84)
(84)
-
(84)
Finance income
 
21
-
21
39
-
39
Profit before taxation
 
693
(113)
580
261
(189)
72
 
 
 
 
 
 
 
 
Taxation
5
(174)
23
(151)
(67)
24
(43)
Profit after taxation from Continuing operations
 
519
(90)
429
194
(165)
29
 
 
 
 
 
 
 
 
Loss for the period from Discontinued operations
7
(1,734)
-
(1,734)
(2)
-
(2)
 
(Loss) / profit for the financial period
 
 
(1,215)
 
(90)
 
(1,305)
 
192
 
(165)
 
27
 
 
 
 
 
 
 
 
(Loss) / profit attributable to:
 
 
 
 
 
 
 
   Owners of the Parent
 
(1,332)
(90)
(1,422)
78
(165)
(87)
   Non - Controlling interests
 
117
-
117
114
-
114
 
 
(1,215)
(90)
(1,305)
192
(165)
27
 
 
 
 
 
 
 
 
Earnings / (loss) per share from Continuing operations
 
 
 
 
 
 
 
Basic and diluted earnings per share
8
1.3p
(0.3p)
1.0p
0.3p
(0.6p)
(0.3p)
Adjusted and diluted earnings per share
8
1.3p
(0.3p)
1.0p
0.8p
(0.6p)
0.2p
 
 
 
 
 
 
 
 
(Loss) / earnings per share from Continuing and Discontinued operations
 
 
 
 
 
 
 
 
 
Basic and diluted earnings per share
8
(4.3p)
(0.3p)
(4.6p)
0.3p
(0.6p)
(0.3p)
Adjusted and diluted earnings per share
8
(4.3p)
(0.3p)
(4.6p)
0.8p
(0.6p)
0.2p
 
 
 
 
 
 
 
 

 

 

 

Consolidated Income Statement
for the six months ended 31 December 2013
 
 
 
 
 
 
 
Notes
 
 
 
Pre-exceptional items
£’000
 
 
 
Exceptional items
(Note 6)
£’000
 
Unaudited Six months
to 31 December 2013
£’000
 
 
Pre-exceptional items (restated)
£’000
 
 
 
Exceptional items
(Note 6)
£’000
 
Unaudited
Six months to 31 December 2012 (restated)
£’000
 
 
 
 
 
 
 
 
Revenue
4
33,962
-
33,962
31,365
-
31,365
 
 
 
 
 
 
 
 
Employee benefits expense
 
(20,011)
(323)
(20,334)
(19,529)
(96)
(19,625)
Other operating charges
 
(12,974)
210
(12,764)
(11,099)
(93)
(11,192)
Operating expenses
 
(32,985)
(113)
(33,098)
(30,628)
(189)
(30,817)
 
 
 
 
 
 
 
 
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
 
 
977
 
(113)
 
864
 
737
 
(189)
 
548
 
 
 
 
 
 
 
 
Depreciation of property, plant and equipment
11
(172)
-
(172)
(173)
-
(173)
Amortisation of other intangible assets
11
(49)
-
(49)
(258)
-
(258)
Operating profit
 
756
(113)
643
306
(189)
117
 
 
 
 
 
 
 
 
Finance costs
 
(84)
-
(84)
(84)
-
(84)
Finance income
 
21
-
21
39
-
39
Profit before taxation
 
693
(113)
580
261
(189)
72
 
 
 
 
 
 
 
 
Taxation
5
(174)
23
(151)
(67)
24
(43)
Profit after taxation from Continuing operations
 
519
(90)
429
194
(165)
29
 
 
 
 
 
 
 
 
Loss for the period from Discontinued operations
7
(1,734)
-
(1,734)
(2)
-
(2)
 
(Loss) / profit for the financial period
 
 
(1,215)
 
(90)
 
(1,305)
 
192
 
(165)
 
27
 
 
 
 
 
 
 
 
(Loss) / profit attributable to:
 
 
 
 
 
 
 
   Owners of the Parent
 
(1,332)
(90)
(1,422)
78
(165)
(87)
   Non - Controlling interests
 
117
-
117
114
-
114
 
 
(1,215)
(90)
(1,305)
192
(165)
27
 
 
 
 
 
 
 
 
Earnings / (loss) per share from Continuing operations
 
 
 
 
 
 
 
Basic and diluted earnings per share
8
1.3p
(0.3p)
1.0p
0.3p
(0.6p)
(0.3p)
Adjusted and diluted earnings per share
8
1.3p
(0.3p)
1.0p
0.8p
(0.6p)
0.2p
 
 
 
 
 
 
 
 
(Loss) / earnings per share from Continuing and Discontinued operations
 
 
 
 
 
 
 
 
 
Basic and diluted earnings per share
8
(4.3p)
(0.3p)
(4.6p)
0.3p
(0.6p)
(0.3p)
Adjusted and diluted earnings per share
8
(4.3p)
(0.3p)
(4.6p)
0.8p
(0.6p)
0.2p
 
 
 
 
 
 
 
 

 

 

 

 

 

 

Consolidated Income Statement

for the six months ended 31 December 2013


 

 

 

 

Notes

 

 

Pre-exceptional items

£'000

 

 

Exceptional items

(Note 6)

£'000

 Unaudited Six months

to 31 December 2013

£'000

 

Pre-exceptional items (restated)

£'000

Exceptional items

(Note 6)

£'000

Unaudited

Six months to 31 December 2012 (restated)

£'000









Revenue

4

33,962

-

33,962

31,365

-

31,365









Employee benefits expense


(20,011)

(323)

(20,334)

(19,529)

(96)

(19,625)

Other operating charges


(12,974)

210

(12,764)

(11,099)

(93)

(11,192)

Operating expenses


(32,985)

(113)

(33,098)

(30,628)

(189)

(30,817)









Earnings before interest, taxes, depreciation and amortisation (EBITDA)


 

977

 

(113)

 

864

 

737

 

(189)

 

548









Depreciation of property, plant and equipment

11

(172)

-

(172)

(173)

-

(173)

Amortisation of other intangible assets

11

(49)

-

(49)

(258)

-

(258)

Operating profit


756

(113)

643

306

(189)

117









Finance costs


(84)

-

(84)

(84)

-

(84)

Finance income


21

-

21

39

-

39

Profit before taxation


693

(113)

580

261

(189)

72









Taxation

5

(174)

23

(151)

(67)

24

(43)

Profit after taxation from Continuing operations


519

(90)

429

194

(165)

29









Loss for the period from Discontinued operations

7

(1,734)

-

(1,734)

(2)

-

(2)

 

(Loss) / profit for the financial period


 

(1,215)

 

(90)

 

(1,305)

 

192

 

(165)

 

27









(Loss) / profit attributable to:








   Owners of the Parent


(1,332)

(90)

(1,422)

78

(165)

(87)

   Non - Controlling interests


117

-

117

114

-

114



(1,215)

(90)

(1,305)

192

(165)

27









Earnings / (loss) per share from Continuing operations








Basic and diluted earnings per share

8

1.3p

(0.3p)

1.0p

0.3p

(0.6p)

(0.3p)

Adjusted and diluted earnings per share

8

1.3p

(0.3p)

1.0p

0.8p

(0.6p)

0.2p









(Loss) / earnings per share from Continuing and Discontinued operations


 

 

 

 





Basic and diluted earnings per share

8

(4.3p)

(0.3p)

(4.6p)

0.3p

(0.6p)

(0.3p)

Adjusted and diluted earnings per share

8

(4.3p)

(0.3p)

(4.6p)

0.8p

(0.6p)

0.2p









 

 

Consolidated Statement of Comprehensive Income

Unaudited

Six months to 31 December 2013

£'000

Unaudited

Six months to 31 December

2012

£'000


(Loss) / profit for the financial period (see above)


Other comprehensive (loss) / income:

Items that may be reclassified subsequently to profit or loss:

Currency translation adjustments

Employee Benefit Trust profit / (loss)

Change in valuation of own shares held by Employee Benefit Trust

Total of items that may be reclassified subsequently to profit or loss


Other comprehensive loss for the period, net of tax:


Total comprehensive loss for the period


Total comprehensive loss attributable to:

  Owners of the Parent

  Non - controlling interest



Total comprehensive loss attributable to Owners of the Parent arising from:

   Continuing operations

   Discontinued operations


 



 

Consolidated Balance Sheet

as at 31 December 2013

 

 

 

 

 

 

Notes

 

Unaudited

As at

31 December 2013

 £'000

 

Unaudited

As at

31 December 2012

 £'000

 

Audited

As at

30 June 2013

 £'000

ASSETS

 

 

 

 

Non - current assets

 

 

 

 

Goodwill

10

16,098

17,038

16,713

Other intangible assets

11

117

229

146

Property, plant and equipment

11

2,498

2,358

2,435

Loan and receivables

 

10

10

10

Deferred taxation asset

 

1,335

1,060

1,316

 

 

20,058

20,695

20,620

Current assets

 

 

 

 

Trade and other receivables

12

31,121

33,027

32,138

Cash at bank

 

3,983

2,657

3,189

 

 

35,104

35,684

35,327

 

 

 

 

 

Total assets

 

55,162

56,379

55,947

 

 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

 

(20,912)

(18,828)

(19,543)

Financial liabilities - borrowings

13

(1,370)

(990)

(829)

 

 

(22,282)

(19,818)

(20,372)

 

 

 

 

 

Non - current liabilities

 

 

 

 

Financial liabilities - borrowings

13

(1,024)

(1,459)

(1,244)

Provisions

14

(1,678)

(1,659)

(1,545)

 

 

(2,702)

(3,118)

(2,789)

 

 

 

 

 

Total liabilities

 

(24,984)

(22,936)

(23,161)

 

 

 

 

 

Net assets

 

30,178

33,443

32,786

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

Share capital

15

3,076

3,076

3,076

Share premium reserve

 

11,881

11,881

11,881

Merger reserve

16

3,144

3,144

3,144

Revaluation reserve

 

598

594

598

Retained earnings

 

10,365

12,774

12,447

 

 

29,064

31,469

31,146

 

 

 

 

 

Non - Controlling interests

 

1,114

1,974

1,640

Total equity

 

30,178

33,443

32,786

 



 

Consolidated Cash Flow Statement

for the six months ended 31 December 2013

 

 

 

 

 

 

Notes

 

Unaudited

Six months to

31 December 2013

£'000

 

 

Unaudited

Six months to

31 December 2012

£'000

Cash flows from operating activities

 

 

 

 

Continuing operations:

 

 

 

 

Cash generated from / (used in) operations

17a

2,054

 

(379)

Interest paid

 

(84)

 

(84)

Interest received

 

21

 

39

Taxation (paid) / received

 

(50)

 

10

Discontinued operations

  7

(624)

 

22

Net cash from / (used in) operating activities

 

1,317

 

(392)

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Continuing operations:

 

 

 

 

 Purchase of property, plant and equipment   (PPE) and other intangible assets

 

(312)

 

 

(248)

Net proceeds from sale of PPE and other intangible assets

 

7

 

13

Discontinued operations

   7

-

 

(1)

Net cash (used in) investing activities

 

(305)

 

(236)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Continuing operations:

 

 

 

 

Repayment of borrowing

 

(213)

 

(207)

Repayments on finance leases

 

-

 

(16)

Equity dividends paid to Non - Controlling Interests

 

(299)

 

-

Discontinued operations

  7

-

 

-

Net cash (used in) financing activities

 

(512)

 

(223)

 

 

 

 

 

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

 

500

 

(851)

Cash, cash equivalents and bank overdrafts at start of period

 

2,788

 

2,998

Exchange rate losses

 

(240)

 

(47)

Cash and cash equivalents at end of period

 

17b

3,048

 

2,100

 



 

Consolidated Statement of Changes in Equity (Unaudited)

as at 31 December 2013


Attributable to the Owners of the Parent




 

Share capital £'000

Share premium reserve

£'000

 

Merger reserve £'000

 

Revaluation

Reserve

£'000

 

Retained earnings

£'000

 

 

Total £'000

Non - Controlling

Interests

£'000

 

Total equity £'000

Balance at 1 July 2012

3,076

11,881

3,144

594

13,002

31,697

1,901

33,598

Currency translation adjustments

-

-

-

-

(91)

(91)

(41)

(132)

Change in valuation of own shares held by Employee Benefit Trust

-

-

-

-

24

24

-

24

Employee Benefit Trust Loss

-

-

-

-

(13)

(13)

-

(13)

Other comprehensive income

-

-

-

-

(80)

(80)

(41)

(121)

(Loss) / profit for the financial period

-

-

-

-

(87)

(87)

114

27

Total comprehensive income

-

-

-

-

(167)

(167)

73

(94)

Dividend

-

-

-

-

(61)

(61)

-

(61)

Balance at 31 December 2012

3,076

11,881

3,144

594

12,774

31,469

1,974

33,443

Currency translation adjustments

-

-

-

-

(231)

(231)

(228)

(459)

Change in UK tax rate on deferred taxation

-

-

-

4

-

4

-

4

Change in valuation of own shares held by Employee Benefit Trust

-

-

-

-

(20)

(20)

-

(20)

Employee Benefit Trust Profit

-

-

-

-

9

9

-

9

Other comprehensive income

-

-

-

4

(242)

(238)

(228)

(466)

(Loss) / profit for the financial period

-

-

-

-

(24)

(24)

266

242

Total comprehensive income

-

-

-

4

(266)

(262)

38

(224)

Dividend

-

-

-

-

(61)

(61)

(372)

(433)

Balance at 30 June 2013

3,076

11,881

3,144

598

12,447

31,146

1,640

32,786

Currency translation adjustments

-

-

-

-

(568)

(568)

(344)

(912)

Change in valuation of own shares held by Employee Benefit Trust

-

-

-

-

(12)

(12)

-

(12)

Employee Benefit Trust profit

-

-

-

-

12

12

-

12

Other comprehensive income

-

-

-

-

(568)

(568)

(344)

(912)

Loss for the financial period

-

-

-

-

(1,422)

(1,422)

117

(1,305)

Total comprehensive income

-

-

-

-

(1,990)

(1,990)

(227)

(2,217)

Dividend

-

-

-

-

(92)

(92)

(299)

(391)

Balance at 31 December 2013

3,076

11,881

3,144

598

10,365

29,064

1,114

30,178

 



Notes to Financial Information

for the six months ended 31 December 2013

 

 

1. General information

 

The Company is a public limited company incorporated and domiciled in the UK. The address of its registered office is Pickfords Wharf, Clink Street, London SE1 9DG. The Company has its listing on the London Stock Exchange. This unaudited Half - Yearly Financial Report was approved for issue on 28 February 2014.

 

This unaudited Half - Yearly Financial Report does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 30 June 2013 were approved by the Board of Directors on 1 November 2013 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006.

 

This Half - Yearly Financial Report has been reviewed but not audited. 

 

2. Basis of preparation

 

This unaudited Half - Yearly Financial Report has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34 'Interim Financial Reporting' as adopted by the European Union (EU).This Half - Yearly Financial Report should be read in conjunction with the Annual Report and Financial Statement for the year ended 30 June 2013, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU with the exception of the following standards which have been adopted in this half - year report.

 

The following standards, amendments to standards and interpretations are effective in the current financial year but have had no material impact on the Group's consolidated financial information:

 

·     Amendment to IAS 12 "Income Taxes" on deferred tax (effective 1 January 2012)

(endorsed 1 January 2013)

·      IFRS 13 "Fair value measurement" (effective 1 January 2013)

·      IAS 19 (revised 2011) "Employee benefits" (effective 1 January 2013)

·      Amendments to IFRS 7 on Financial instruments asset and liability offsetting

(effective 1 January 2013)

·      Annual improvements 2011 (effective 1 January 2013)

 

The unaudited Half - Yearly Financial Report has been prepared in accordance with IFRS as adopted by the EU and those parts of the Companies Act 2006 related to reporting under IFRS that the directors expect to be applicable as at 30 June 2014. IFRS are subject to amendment or interpretation by the International Accounting Standards Board and there is an ongoing process of review and endorsement by the EU. For these reasons, it is possible that the information presented in this report may be subject to change.

 

The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reported period. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates. There has been no change to the basis of these estimates since the previous year end.

 

3. Accounting policies

 

The accounting policies adopted are consistent with those of the Annual Financial Statements for the year ended 30 June 2013, as described in those Annual Financial Statements, with the addition of the following policy:

 

Discontinued operations - cash flows and operations that relate to a separate major line of business or geographical region that has been disposed of are shown separately from Continuing operations. Prior year comparative figures will be restated to present financial information on a consistent basis. 

 

4. Segmental information

 

The losses incurred by the Discontinued operations are reported separately in the Consolidated Income Statement below Profit for the financial period (see Note 7). The segmental information for the comparative period has been restated onto the same basis as the current period. The results for operations in the United Arab Emirates were previously reported in the International multi-disciplinary segment.

 

 

 

 

Six months ended

31 December 2013

Consolidated Income Statement

 

Building services

£ '000

 

Civil and transportation

£ '000

Energy, environment

and design

£ '000

 

 

Structures

£ '000

International

multi-disciplinary

£ '000

 

 

Total

£'000

Revenue - total

3,679

14,163

4,238

9,936

5,754

37,770

Revenue- internal

(134)

(310)

(229)

(2,899)

(236)

(3,808)

Revenue

3,545

13,853

4,009

7,037

5,518

33,962

EBITDA pre - exceptional items

250

(508)

339

692

204

977

Depreciation and amortisation on computer software

(21)

(75)

(29)

(35)

(54)

(214)

Operating profit / (loss) pre - exceptional items and amortisation on acquired intangible assets

229

(583)

310

657

150

763

Amortisation on acquired intangible assets

(7)

-

-

-

-

(7)

Allocated exceptional items

(3)

(147)

(3)

(9)

49

(113)

Operating profit post exceptional items

219

(730)

307

648

199

643

Net finance costs






(63)

Profit before taxation






580

Taxation






(151)

Profit for the financial period






429

Discontinued operations (Note 7)






(1,734)

Loss for the financial period






(1,305)

Profit attributable to Non - Controlling Interests






117

Profit attributable to the Owners of the Parent






(1,422)

 

 

 

 

Six months ended

31 December 2012

Consolidated Income Statement

 

 

Building

Services (restated)

£ '000

 

 

Civil and transportation (restated)

£ '000

 

Energy, environment

and design (restated)

£ '000

 

 

 

Structures

(restated)

£ '000

 

International

multi-disciplinary (restated)

£ '000

 

 

 

Total (restated)

£'000

Revenue - total

2,605

14,990

3,705

7,020

7,613

35,933

Revenue - internal

(118)

(2,446)

(392)

(1,272)

(340)

(4,568)

Revenue

2,487

12,544

3,313

5,748

7,273

31,365

EBITDA pre - exceptional items

38

(50)

302

573

(126)

737

Depreciation and amortisation on computer software

(19)

(89)

(28)

(31)

(57)

(224)

Operating profit / (loss) pre - exceptional items and amortisation on acquired intangible assets

19

(139)

274

542

(183)

513

Amortisation on acquired intangible assets

(18)

(137)

-

-

(52)

(207)

Allocated exceptional items

-

21

(9)

-

(201)

(189)

Operating profit post exceptional items

1

(255)

265

542

(436)

117

Net finance costs






(45)

Profit before taxation






72

Taxation






(43)

Profit after tax from Continuing operations






29

Discontinued operations (Note 7)






(2)

Profit for the financial period






27

Profit attributable to Non - Controlling Interests






114

Loss attributable to the Owners of the Parent






(87)

 

 

5. Taxation

 

The taxation charge, pre-exceptional items, for the 6 months to 31 December 2013 is calculated at 25% of the profit before tax, being the estimated effective rate for the period (2012: 26%). The estimated total tax charge of £174,000 consists of a current tax charge of £228,000 and a deferred tax credit of £54,000. After including exceptional items, the effective tax rate for the period is 26% (2012: 60%).

 

The effective tax rate for the period is higher than the UK corporation tax rate for the period of 22.5% due to the mix of profits between the different Group companies and jurisdictions in which they operate.

 

 

6. Exceptional Items

 

 

31 December 2013

£'000

31 December 2012

£'000

Employee benefits expense

 

 

Other restructuring costs

323

96

 

 

 

Other operating charges

 

 

Property provisions and accruals

-

12

Work in progress and trade receivables provisions

(210)

81

 

(210)

93

 

 

 

Taxation

(23)

(24)

 

 

 

Total exceptional items

90

165

 

 

a)   Other restructuring costs: Relates mainly to costs resulting from the restructuring of the Board (2012: redundancy costs resulting from the closure of operations in China, Kazakhstan and Queensland, Australia).

b)   Work in progress and trade receivables provisions: Certain doubtful debts which were written off in prior periods as Exceptional items have been written back following payment in the current period (2012: provisions against balances in China and Kazakhstan resulting from the closure of these operations).

 

7. Discontinued Operations

 

In July 2013, the Group decided to wind down its operations and discontinue trading in the United Arab Emirates (UAE). By 31 December 2013, all revenue generating activities in the UAE had ceased and the operations have been classified as discontinued.

 

The Consolidated Income Statement and Consolidated Cash Flow Statement report Continuing operations and Discontinued operations separately. Comparative figures have been restated. The results for the Discontinued operations, which have been included in the Consolidated Statement of Comprehensive Income, were as follows:

 

 

31 December 2013

£'000

31 December 2012

£'000

 

 

 

Revenue

486

2,036

Expenses

(2,220)

(2,038)

Loss before tax

(1,734)

(2)

Taxation

-

-

Loss after tax from Discontinued operations

(1,734)

(2)

 

A net cash outflow of £624,000 (2012: inflow of £21,000) resulted from the Discontinued operations during the period. 

 

8. Earnings per share

 

The basic and fully diluted earnings per share has been calculated on the profit attributable to shareholders in the Parent Company and based on the weighted average of 30,650,824 shares in issue during the period and ranking for dividend (31 December 2012: 30,556,991). The fully diluted earnings per share calculation is the same as there are no dilutive share options in issue as at 31 December 2013.

 

 Earnings / (loss) from Continuing operations

31 December 2013

£'000

31 December 2012

£'000

 

 

 

Profit / (loss) attributable to the Owners of the Parent

312

(85)

Exceptional items

90

165

Amortisation of acquired intangibles after tax

5

158

Earnings for the purposes of adjusted EPS

407

238

 

 

 

Basic and diluted EPS

1.0p

(0.3p)

Adjusted and diluted EPS

1.3p

0.8p

 

 (Loss) / earnings from Continuing and Discontinued operations

31 December 2013

£'000

31 December 2012

£'000

 

 

 

Loss attributable to the Owners of the Parent

(1,422)

(87)

Exceptional items

90

165

Amortisation of acquired intangibles after tax

7

158

Earnings for the purposes of adjusted EPS

(1,325)

236

 

 

 

Basic and diluted EPS

(4.6p)

(0.3p)

Adjusted and diluted EPS

(4.3p)

0.8p

 

 

9. Dividends

 

The directors propose an interim dividend of 0.4p per share (31 December 2012: 0.2p per share). The shares will become ex-dividend on 19 March 2014 and the dividend will be paid on 18 April 2014 to shareholders on the register at the close of business on 21 March 2014.

 

The final dividend for the year ended 30 June 2013 of 0.3p per share was paid on 10 January 2014 to shareholders on the register at 13 December 2013.

 

 

 

Unaudited

Six months to

31 December 2013 £'000

Unaudited

Six months to

31 December 2012

£'000

Dividends charged to equity in the period

 

92

61

 

 

 

 

Dividend per ordinary share paid in period

 

0.0p

0.0p

Dividend per ordinary share proposed in period

 

0.3p

0.2p

 

10. Goodwill

 

 

31 December 2013

£'000

31 December 2012

£'000

 

 

 

Cost at 1 July

17,207

17,604

Exchange rate adjustments

(514)

(72)

Goodwill in respect of Discontinued operations

(101)

-

At 31 December

16,592

17,532

 

 

 

Impairment at 1 July and 31  December

(494)

(494)

 

 

 

Net book amount

16,098

17,038

 

An impairment charge has been incurred to write off the goodwill balance following the discontinuance of operations in the United Arab Emirates.

 

11. Capital expenditure

 

 

PPE and Other intangible assets

31 December 2013

£'000

PPE and Other intangible assets

31 December 2012

£'000

 

 

 

Opening net book amount at 1 July

2,581

2,800

Additions

312

249

Disposals

(3)

(13)

Exchange rate adjustments

(26)

6

Depreciation in respect of Discontinued operations

(28)

(24)

Depreciation and amortisation

(221)

(431)

Closing net book amount at 31 December

2,615

2,587

 

 

12. Trade and other receivables

 

As of 31 December 2013, trade receivables, net of provisions were £17.8m (31 December 2012: £17.6m and 30 June 2013: £18.4m) of which £12.2m (31 December 2012: £11.0m and 30 June 2013: £9.5m) were more than 30 days old but not impaired. These relate to a number of independent UK and overseas customers for whom there is no recent history of default.

 

 

13. Financial liabilities - borrowings

 

 

 31 December 2013

£'000

31 December 2012

£'000

30 June 2013

£'000

Current

 

 

 

Drawdown on invoice discounting facility

935

557

401

Bank loans

435

421

428

Finance leases

-

12

-

 

1,370

990

829

Non - current

 

 

 

Bank loans

1,024

1,459

1,244

Finance leases

-

-

-

 

1,024

1,459

1,244

 Total

2,394

2,449

2,073

 

 

At 31 December 2013, the Group has a term loan of £1.5m (31 December 2012: £1.9m and 30 June 2013: £1.7m) which is subject to three financial covenants which are tested half - yearly (Note 19).

 

 

14. Provisions

 


Liability

Insurance

£'000

Property

provisions

£'000

 

2013

£'000

Liability

Insurance

£'000

Property

provisions

£'000

 

2012

£'000

 

 

 

 

 

 

 

1 July

1,367

178

1,545

1,243

533

1,776

 

 

 

 

 

 

 

Charged to the Consolidated Income Statement

250

-

250

360

-

360

Utilised

(24)

(64)

(88)

(21)

(210)

(231)

Released to the Consolidated Income Statement

-

-

-

(258)

-

(258)

Exchange rate adjustments

(29)

-

(29)

12

-

12

Discount

-

-

-

-

-

-

 

 

 

 

 

 

 

31 December

1,564

114

1,678

1,336

323

1,659

 

The provisions represent management's best estimate of costs to be incurred in respect of potential liability insurance claims and property provisions.

 

 

15. Share capital

 

The share capital of the Company comprises ordinary shares of 10p each. No new shares were issued during the current or comparative period.

 

 Six months ended 31 December 2013 and

 Six months ended 31 December 2012

 

Issued and Fully Paid


Number '000

£'000




At 1 July and at 31 December

30,759

3,076

 

16. Merger reserve

 

The merger reserve represents the value received in excess of nominal value for shares issued pursuant to business combinations where company law prohibits the recording of a premium. Included within the profit and loss reserve balance brought forward is an amount of £1,133,000 (2012: £1,133,000) relating to the write off of purchased goodwill prior to the transition to IFRS.

  

17. Notes to the Consolidated Cash Flow Statement

 

a) Reconciliation of profit for the financial period to cash generated from operations

 

Unaudited

Six months to

31 December 2013

£'000

Unaudited

Six months to

31 December 2012

£'000

Profit for the financial period from Continuing operations

429

29

Taxation

151

43

Interest payable

84

84

Interest receivable

(21)

(39)

Amortisation of other intangible assets

49

258

Depreciation

172

173

(Profit) on disposal of PPE and other intangible assets

(4)

-

Changes in working capital

 

 

       (Increase) in Trade and other receivables

(272)

(381)

       Increase / (decrease) in Trade and other payables

1,311

(417)

       Increase / (decrease) in Provisions

155

(129)

Cash generated from / (used in ) Continuing operations

2,054

(379)

 

b) Analysis of net funds


 

31 December 2012

£'000

 

30 June

2013

£'000

 

 

Cash flow

£'000

 

Other non -cash changes

£'000

 

Exchange movements

£'000

 

31 December 2013

£'000

Cash at bank

2,657

3,189

1,034

-

(240)

3,983

Drawdown on invoice discounting facility

(557)

(401)

(534)

-

-

(935)

Cash and cash equivalents

 

2,100

 

2,788

500

-

(240)

3,048

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

Bank loans

(421)

(428)

213

(220)

-

(435)

Finance leases

(12)

-

-

-

-

-

 

 

 

 

 

 

 

Non - current

 

 

 

 

 

 

Bank loans

(1,459)

(1,244)

-

220

-

(1,024)

Finance leases

-

-

-

-

-

-

 

 

 

 

 

 

 

Net funds

208

1,116

713

-

(240)

1,589

 

 

18. Related party transactions

 

There have been no significant changes in the related party transactions described in the Waterman Group plc Financial Statements for the year ended 30 June 2013 that could have a material effect on the financial position or performance of Waterman Group plc in the six month period ended 31 December 2013.

 

19. Going concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Interim Report. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the Financial Statement and Notes.

The directors have prepared a cash flow forecast and a forecast for covenant compliance to June 2015. The financial covenants allow for a sensible tolerance in trading performance in relation to the forecasts. The directors are confident that the underlying forecasts are reasonable. The Group is reliant on the ability of customers to pay debts and on the timing of projects coming on line. In adverse trading circumstances the Board has a number of mitigating actions it could take to ensure covenant compliance.

In addition the Group has considerable financial resources together with long term contracts and relationships with a number of customers and suppliers across different geographic areas and industries. As a consequence, the directors believe that the Group is well placed to manage its business risks successfully in the future.

After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Interim Report and Financial Statement.

20. Principal risks and uncertainties

The principal risks and uncertainties affecting the business activities of the Group remain broadly the same as at 30 June 2013. These risks and uncertainties are expected to be unchanged for the next six months and are disclosed and described within the Corporate Governance Report of the Waterman Group plc Annual Report and Financial Statement 2013.

 

 

21. Post Balance Sheet Event

 

In January 2014, the Group decided to close its Russian operation. In the financial year to 30 June 2014, the Group anticipates that it will incur a loss from Discontinued operations for Moscow of around £1.9m with a cash outflow of around £1.3m after anticipated costs associated with the orderly wind down of operations and financial settlements in respect to debtors and work in progress.

 

 

22. Further information

 

Copies of the Interim Report are available from the Company's registered office at Pickfords Wharf, Clink Street, London SE1 9DG. In addition, electronic copies of the Interim Report and the 30 June 2013 Financial Statements can be viewed on the Group's website www.watermangroup.com

 

The directors are responsible for the maintenance and integrity of the Group's website on the internet. However, information is accessible in many different countries where legislation governing the preparation and dissemination of financial information may differ to that applicable to the United Kingdom.

 

Statement of Directors' Responsibilities

 

The directors confirm that this unaudited set of Financial Statements has been prepared in accordance with IAS 34 as adopted by the European Union, and that the Interim Report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8

 

The directors of Waterman Group plc are listed in the Waterman Group plc Annual Report and Financial Statement 2013. A list of current directors is maintained on the Waterman Group website www.watermangroup.com.

 

 

 

By order of the Board

Graham R Hiscocks

Company Secretary

 

28 February 2014

 

 

 

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

a d v e r t i s e m e n t