Last checked at 10 Sep 2014 07:00
Anpario plc (AIM: ANP)
Anpario plc, the international producer and distributor of natural feed additives for animal health, hygiene and nutrition is pleased to announce its interim results for the six months to 30 June 2014.
Financial and operational highlights1
Financial highlights
9% increase in underlying earnings per share2 to 7.59p (2013: 6.99p) 6% rise in adjusted EBITDA3 to £1.8m (2013: £1.7m) 5% improvement in gross profit to £4.7m (2013: £4.5m) 2% uplift in sales revenue to £13.1m (2013: £12.8m) Cash balances of £5.7m at 30 June 2014 (31 Dec 2013: £4.8m)Operational highlights
Strong revenue growth in the Americas and Asia of 67% and 13% respectively China subsidiary, as part of Asia, progresses with 34% growth in sales First and ongoing sales in the US pig market Recently launched products, pHorce and Ultrabond, increasing market penetration with volume growthRichard S Rose, Chairman, commented:
“The Group delivered a good set of results for the six months to 30 June 2014 and continues to make sound progress implementing its strategy.
The healthy cash balance and continuing cash generative nature of the business leaves Anpario well positioned to finance further organic growth. In addition, the Group is also able to consider making selective investments and earnings enhancing acquisitions, should suitable opportunities arise. These factors, combined with the strong trading position, will drive progress and continue to enhance the value of Anpario for all its stakeholders.”
Chairman’s Statement
The Group delivered a good set of results for the six months to 30 June 2014 and continues to make sound progress implementing its strategy. Anpario continued to develop sales in its target geographic regions by prioritising key brands and ensuring that the necessary sales and technical resource are in place locally. The growing success of the strategy is reflected in the results of our operations in Asia and the Americas, which were achieved despite currency headwinds.
Anpario continued to develop a greater international presence with particular emphasis on investing in major markets in Brazil, US and China, which delivered strong organic growth. Whilst the Group’s approach is conservative and the respective timeframe requires patience, the outlook remains positive for the strategy to meet expectations.
Financial Review
In the six months to 30 June 2014 profit before tax increased by 5% to £1.6m (2013: £1.5m). Adjusted EBITDA rose by a similar percentage to £1.8m (2013: £1.7m).
Overall sales volume increased by 4% while revenue rose by 2% to £13.1m (2013: £12.8m). This result reflected the impact of the strengthening of Sterling in the period, which was further compounded by a change in the Group’s currency mix due to the achievement of a 41% increase in US Dollar sales.
A consequence of the continued strategic focus on selling specialist feed additive products in to growth markets, coupled with the effect of operational gearing, has seen gross profits increase by 5% to £4.7m (2013: £4.5m) with gross margin itself improving to 35.8% (2013: 34.8%).
Overheads are running some 6% above the level of the same period last year as a result of the Group’s investment in its international sales and technical teams to support further expansion in Brazil, China and the US.
Underlying earnings per share2 increased by 9% to 7.59 pence per share (2013: 6.99 pence per share).
The balance sheet remains strong and debt free with further good cash generation. The Group’s cash position remains stable with a cash balance of £5.7m (2013: £5.6m). Investments totalling £0.4m have continued, principally in systems, product development and protection of global brand and product trademarks.
Product development
Anpario is a leader in the growing global market for natural feed additives, which help to keep farm animals healthy; our target markets are poultry and pig producers with further potential opportunities in the ruminant sector. The additives assist farmers to achieve higher financial returns from their livestock by improving the health and feed efficiency of the animals.
The agricultural industry is very cautious about the introduction of new products. It takes time to satisfy potential customers of the safety and efficacy of new products and they typically require a trial period to test outcomes. Anpario works alongside its distributors to assist with trials so that potential customers can be assured of the product’s performance and efficacy. Trials can take many months and need to satisfy the agriculture industry that new products are safe, reliable and performance enhancing.
The Group continues to strengthen its sales, marketing and technical capability in order to implement its strategy to build closer local relationships with customers. Technical and sales staff are being recruited in our major geographic regions. We have recently refreshed our key Optivite brand image to raise its profile in its major markets and support the launch of a number of new products such as Ultrabond and Optimax, which promote healthy digestion in animals. Further work is underway to reorganise the team around species and product specialisation to enhance the customers’ proposition. These changes will bring us closer to customers by providing further local expertise in specific product areas within countries. It will also enable the marketing team to provide higher levels of technical and sales support during the lengthy trials process.
Operations – International Agriculture
The International Division made good progress in Asia and the Americas: volume and revenue advanced 14% and 13% respectively in Asia and 84% and 67% respectively in the Americas. The effective deployment of resources within these regions has facilitated greater access to these markets and achieved closer collaboration with our partners and customer base. The development within these areas is expected to continue.
However, the strong progress in these areas was counteracted with a 33% decline in sales in the Middle East and African regions due to the escalation of the adverse political situations. Restricted access to some territories and conflicts in others may continue for some time but we are ready to respond rapidly once local conditions permit.
Anpario’s wholly owned subsidiary in China achieved sales growth of 34%, compared to the same period last year. This strong performance was delivered at a time when pork prices were relatively weak. Our operation in China is progressively expanding into a number of new provinces within the pig sector and will shortly enter the poultry and feed mill sectors, creating further opportunities.
In Asia Pacific, Group sales into the Philippines, South Korea, Australia and Vietnam all demonstrated double-digit growth. Other markets in the region, including Malaysia, have improved in recent months. With additional product registrations imminent in Indonesia, further progress is expected there before the end of the year.
The results from the product trials in Brazil have continued to generate sales and further value for our brands, in some cases demonstrating not only a performance improvement of the breeding stock, but also the progeny. The high returns on investment, through the combined benefits of disease management and performance improvement are leading some breeding companies to use our products in the feed to maximise the genetic potential of their animals. Awareness of these benefits is becoming more widespread in the region and we have achieved double-digit revenue growth in Argentina, Chile, Ecuador and Peru.
Our US subsidiary has launched Orego-Stim and has already secured repeat orders. This product is an appetite stimulant for pigs and is now being developed for product trials within the poultry sector. Feedback from the market has been very encouraging and further product launches are in the pipeline to offer the US market a comprehensive range of natural feed additives to take advantage of the changing regulations regarding antibiotic growth promoters.
Operations - UK Agriculture
The success of our strategy to reposition the business and to focus on value-added specialist feed additive products, is now taking hold, enabling the division to make excellent progress with double-digit growth in gross profit. The launch of a new toxin binder, Ultrabond, supplying the ruminant and pig home-mix sectors has been very well received. The positioning of our acidifier range to manage life stages from birth to breeding in the pig and poultry sectors has enabled the division to become a major force within the industry. Our organic animal feed division has also made good progress, improving strongly on last year’s performance in a generally difficult market. This result has been achieved through robust operational management and we expect the improvement to be maintained.
Outlook
We are confident of maintaining the momentum of the first six months performance and expect the Group to meet market expectations for the year ended 31 December 2014. The healthy cash balance and continuing cash generative nature of the business leave Anpario well positioned to finance further organic growth. In addition, the Group is also able to consider making selective investments and earnings enhancing acquisitions, should suitable opportunities arise. These factors, combined with the strong trading position, will drive progress and continue to enhance the value of Anpario for all its stakeholders.
Richard S Rose
Chairman
10 September 2014
| Unaudited consolidated income statement | |||||||||||||
| for the six months ended 30 June 2014 | |||||||||||||
| restated1 | restated1 | ||||||||||||
| six months to | six months to | year ended | |||||||||||
| 30/06/14 | 30/06/13 | 31/12/13 | |||||||||||
| Notes | £000 | £000 | £000 | ||||||||||
| Revenue | 3 | 13,109 | 12,840 | 25,950 | |||||||||
| Cost of sales | (8,421) | (8,366) | (16,875) | ||||||||||
| Gross profit | 4,688 | 4,474 | 9,075 | ||||||||||
| Administrative expenses | (3,102) | (2,933) | (6,144) | ||||||||||
| Operating profit | 1,586 | 1,541 | 2,931 | ||||||||||
| Finance income | 27 | 22 | 50 | ||||||||||
| Finance cost of contingent consideration | (21) | (48) | (78) | ||||||||||
| Profit before income tax | 1,592 | 1,515 | 2,903 | ||||||||||
| Income tax expense | (218) | (289) | (329) | ||||||||||
| Profit for the period from continuing operations | 1,374 | 1,226 | 2,574 | ||||||||||
| Profit attributable to: | |||||||||||||
| Owners of the parent | 1,374 | 1,226 | 2,574 | ||||||||||
| Profit for the period | 1,374 | 1,226 | 2,574 | ||||||||||
| The consolidated income statement has been prepared on the basis that all operations are continuing operations. | |||||||||||||
| Basic earnings per share | 4 | 7.48p | 6.72p | 14.10p | |||||||||
| Diluted earnings per share | 4 | 6.78p | 6.30p | 13.13p | |||||||||
| Underlying earnings per share | 4 | 7.59p | 6.99p | 13.15p | |||||||||
| Diluted underlying earnings per share | 4 | 6.89p | 6.55p | 12.25p | |||||||||
| Unaudited consolidated statement of comprehensive income | |||||||||||||
| for the six months ended 30 June 2014 | |||||||||||||
| restated1 | restated1 | ||||||||||||
| six months to | six months to | year ended | |||||||||||
| 30/06/14 | 30/06/13 | 31/12/13 | |||||||||||
| Profit for the period | 1,374 | 1,226 | 2,574 | ||||||||||
| Items that may be subsequently reclassified to profit or loss: | |||||||||||||
| Exchange difference on translating foreign operations | (1) | (11) | (17) | ||||||||||
| Total comprehensive income for the period | 1,373 | 1,215 | 2,557 | ||||||||||
| Attributable to the owners of the parent: | 1,373 | 1,215 | 2,557 | ||||||||||
| Total comprehensive income for the period | 1,373 | 1,215 | 2,557 | ||||||||||
| Unaudited consolidated balance sheet | |||||||||||||
| as at 30 June 2014 | |||||||||||||
| restated1 | restated1 | ||||||||||||
| as at | as at | as at | |||||||||||
| 30/06/14 | 30/06/13 | 31/12/13 | |||||||||||
| Notes | £000 | £000 | £000 | ||||||||||
| Intangible assets | 5 | 9,386 | 9,132 | 9,302 | |||||||||
| Property, plant and equipment | 6 | 3,196 | 2,926 | 3,054 | |||||||||
| Deferred tax assets | 204 | 228 | 204 | ||||||||||
| Non-current assets | 12,786 | 12,286 | 12,560 | ||||||||||
| Inventories | 1,585 | 1,685 | 1,816 | ||||||||||
| Trade and other receivables | 7,286 | 6,159 | 6,979 | ||||||||||
| Cash and cash equivalents | 5,698 | 5,629 | 4,779 | ||||||||||
| Current assets | 14,569 | 13,473 | 13,574 | ||||||||||
| Total assets | 27,355 | 25,759 | 26,134 | ||||||||||
| Called up share capital | 4,592 | 4,565 | 4,573 | ||||||||||
| Share premium | 3,973 | 3,904 | 3,922 | ||||||||||
| Other reserves | (348) | (476) | (345) | ||||||||||
| Retained earnings | 13,353 | 11,199 | 11,979 | ||||||||||
| Total equity | 21,570 | 19,192 | 20,129 | ||||||||||
| Deferred tax liabilities | 990 | 1,034 | 1,000 | ||||||||||
| Non-current liabilities | 990 | 1,034 | 1,000 | ||||||||||
| Trade and other payables | 4,358 | 5,037 | 4,693 | ||||||||||
| Current income tax liabilities | 437 | 496 | 312 | ||||||||||
| Current liabilities | 4,795 | 5,533 | 5,005 | ||||||||||
| Total liabilities | 5,785 | 6,567 | 6,005 | ||||||||||
| Total equity and liabilities | 27,355 | 25,759 | 26,134 | ||||||||||
| Unaudited consolidated statement of changes in equity | |||||||||||
| as at 30 June 2014 | |||||||||||
| Called up | Share | Other | Retained | ||||||||
| share capital | premium | reserves | earnings | Total equity | |||||||
| £000 | £000 | £000 | £000 | £000 | |||||||
| Balance at 1st January 2013 restated1 | 4,555 | 3,884 | (497) | 9,973 | 17,915 | ||||||
| Profit for the period | - | - | - | 1,226 | 1,226 | ||||||
| Currency translation differences | - | - | (11) | - | (11) | ||||||
| Total comprehensive income for the period | - | - | (11) | 1,226 | 1,215 | ||||||
| Issue of share capital | 10 | 20 | - | - | 30 | ||||||
| Share-based payment adjustments | - | - | 32 | - | 32 | ||||||
| Transactions with owners | 10 | 20 | 32 | - | 62 | ||||||
| Balance at 30 June 2013 restated1 | 4,565 | 3,904 | (476) | 11,199 | 19,192 | ||||||
| Profit for the period | - | - | - | 1,348 | 1,348 | ||||||
| Currency translation differences | - | - | (6) | - | (6) | ||||||
| Total comprehensive income for the period | - | - | (6) | 1,348 | 1,342 | ||||||
| Issue of share capital | 8 | 18 | - | - | 26 | ||||||
| Share-based payment adjustments | - | - | 137 | - | 137 | ||||||
| Dividends relating to 2012 | - | - | - | (568) | (568) | ||||||
| Transactions with owners | 8 | 18 | 137 | (568) | (405) | ||||||
| Balance at 31 December 2013 restated1 | 4,573 | 3,922 | (345) | 11,979 | 20,129 | ||||||
| Profit for the period | - | - | - | 1,374 | 1,374 | ||||||
| Currency translation differences | - | - | (1) | - | (1) | ||||||
| Total comprehensive income for the period | - | - | (1) | 1,374 | 1,373 | ||||||
| Issue of share capital | 19 | 51 | - | - | 70 | ||||||
| Share-based payment adjustments | - | - | (2) | - | (2) | ||||||
| Transactions with owners | 19 | 51 | (2) | - | 68 | ||||||
| Balance at 30 June 2014 | 4,592 | 3,973 | (348) | 13,353 | 21,570 | ||||||
| Unaudited consolidated statements of cash flows | |||||||||||
| for the six months ended 30 June 2014 | |||||||||||
| restated1 | restated1 | ||||||||||
| six months to | six months to | year ended | |||||||||
| 30/06/14 | 30/06/13 | 31/12/13 | |||||||||
| £000 | £000 | £000 | |||||||||
| Cash generated from operating activities | 1,338 | 2,209 | 3,099 | ||||||||
| Income tax (paid)/refunded | (91) | 57 | (176) | ||||||||
| Net cash generated from operating activities | 1,247 | 2,266 | 2,923 | ||||||||
| Acquisition of subsidiary, net of cash acquired | - | - | (429) | ||||||||
| Purchases of property, plant and equipment | (271) | (237) | (470) | ||||||||
| Proceeds from disposal of property, plant and equipment | 19 | - | - | ||||||||
| Payments to acquire intangible fixed assets | (158) | (112) | (401) | ||||||||
| Interest received | 27 | 22 | 50 | ||||||||
| Net cash used by investing activities | (383) | (327) | (1,250) | ||||||||
| Proceeds from issuance of shares | 70 | 30 | 56 | ||||||||
| Dividend paid to Company's shareholders | - | - | (568) | ||||||||
| Net cash used in financing activities | 70 | 30 | (512) | ||||||||
| Net increase in cash & cash equivalents | 934 | 1,969 | 1,161 | ||||||||
| Effect of exchange rate changes | (15) | (6) | (48) | ||||||||
| Cash and cash equivalents at the beginning of the period | 4,779 | 3,666 | 3,666 | ||||||||
| Cash and cash equivalents at the end of the period | 5,698 | 5,629 | 4,779 | ||||||||
| restated1 | restated1 | ||||||||||
| six months to | six months to | year ended | |||||||||
| 30/06/14 | 30/06/13 | 31/12/13 | |||||||||
| Cash generated from operating activities | £000 | £000 | £000 | ||||||||
| Profit before income tax | 1,592 | 1,515 | 2,903 | ||||||||
| Net finance cost/(income) | (6) | 26 | 28 | ||||||||
| Depreciation, amortisation and impairment | 186 | 152 | 375 | ||||||||
| Share-based payments | (2) | 32 | 169 | ||||||||
| Changes in working capital: | |||||||||||
| Inventories | 214 | (78) | (230) | ||||||||
| Trade and other receivables | (321) | 877 | 82 | ||||||||
| Trade and other payables | (325) | (315) | (228) | ||||||||
| Net cash generated from operating activities | 1,338 | 2,209 | 3,099 | ||||||||
| Notes to the financial statements |
| 1. General information |
| Anpario plc ("the Company") and its subsidiaries (together "the Group") manufacture and supply high performance natural feed additives for the agricultural market with products to improve the health and output of animals. The Company is traded on the London Stock Exchange Aim market and is incorporated and domiciled in the UK. The address of the registered office is Manton Wood Enterprise Park, Worksop, Nottinghamshire, S80 2RS. |
| 2. Summary of significant accounting policies 2.1 Basis of preparation |
| The consolidated financial statements comprise the accounts of the Company and its subsidiaries drawn up to 30 June 2014. The consolidated financial statements have been prepared on the basis of the accounting policies set out in the Group's financial statements for the year ended 31 December 2013, which are available on the Company's web site at www.anpario.com. This condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2013 were approved by the Board of Directors on 9 May 2014 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 (2) or (3) of the Companies Act 2006. The consolidated interim financial information for the period ended 30 June 2014 is neither audited nor reviewed. |
| 2.1.1 New accounting policies adopted |
| On 1 January 2014 the Group adopted new accounting policies where necessary to comply with amendments to IFRS. Accounting pronouncements considered by the Group as significant on adoption are: Changes to the standards governing the accounting for subsidiaries, joint arrangements and associates, including the introduction of IFRS 10, “Consolidated Financial Statements”, IFRS 11, “Joint Arrangements” and IFRS 12, “Disclosure of Interests in Other Entities” and amendments to IAS 28, “Investments in Associates and Joint Ventures”. Under IFRS 11, the Group’s principal joint arrangements are incorporated into the consolidated financial statements using the equity method of accounting rather than proportionate consolidation. The consolidated financial statements have been restated on the adoption of IFRS 11; the other changes to the standards governing the accounting for subsidiaries, joint arrangements and associates do not have a material impact on the Group. The previously reported comparative periods have been restated in the consolidated financial statements for the amendments to IFRS 11. The impact on key financial information is immaterial and a summary of the main changes are detailed in the following table. |
| 2013 | H1 2013 | ||||||||||||||||||
| as reported | adjustments | restated | as reported | adjustments | restated | ||||||||||||||
| £000 | £000 | £000 | £000 | £000 | £000 | ||||||||||||||
| Revenue | 26,264 | (314) | 25,950 | 12,952 | (112) | 12,840 | |||||||||||||
| Gross profit | 9,219 | (144) | 9,075 | 4,548 | (74) | 4,474 | |||||||||||||
| Administrative expenses | (6,306) | 162 | (6,144) | (3,016) | 83 | (2,933) | |||||||||||||
| Operating profit | 2,913 | 18 | 2,931 | 1,532 | 9 | 1,541 | |||||||||||||
| Profit before income tax | 2,885 | 18 | 2,903 | 1,506 | 9 | 1,515 | |||||||||||||
| 3. Segment information | |||||||||||||||||||
| UK and Eire | International | Total | |||||||||||||||||
| £000 | £000 | £000 | |||||||||||||||||
| for the six months ended 30 June 2014 | |||||||||||||||||||
| Total segmental revenue | 3,082 | 10,451 | 13,533 | ||||||||||||||||
| Inter-segment revenue | - | (424) | (424) | ||||||||||||||||
| Revenue from external customers | 3,082 | 10,027 | 13,109 | ||||||||||||||||
| Adjusted EBITDA | 241 | 1,599 | 1,840 | ||||||||||||||||
| Depreciation, amortisation and impairment charges | (27) | (159) | (186) | ||||||||||||||||
| Income tax | (42) | (176) | (218) | ||||||||||||||||
| Total assets | 7,857 | 19,498 | 27,355 | ||||||||||||||||
| Total liabilities | (1,429) | (4,356) | (5,785) | ||||||||||||||||
| for the six months ended 30 June 2013 | |||||||||||||||||||
| Total segmental revenue | 2,950 | 10,159 | 13,109 | ||||||||||||||||
| Inter-segment revenue | - | (269) | (269) | ||||||||||||||||
| Revenue from external customers | 2,950 | 9,890 | 12,840 | ||||||||||||||||
| Adjusted EBITDA | 200 | 1,533 | 1,733 | ||||||||||||||||
| Depreciation, amortisation and impairment charges | (19) | (133) | (152) | ||||||||||||||||
| Income tax expense | (21) | (268) | (289) | ||||||||||||||||
| Total assets | 8,882 | 16,877 | 25,759 | ||||||||||||||||
| Total liabilities | (2,373) | (4,194) | (6,567) | ||||||||||||||||
| for the year ended 31 December 2013 | |||||||||||||||||||
| Total segmental revenue | 6,314 | 20,358 | 26,672 | ||||||||||||||||
| Inter-segment revenue | - | (722) | (722) | ||||||||||||||||
| Revenue from external customers | 6,314 | 19,636 | 25,950 | ||||||||||||||||
| Adjusted EBITDA | 312 | 3,185 | 3,497 | ||||||||||||||||
| Depreciation, amortisation and impairment charges | (44) | (331) | (375) | ||||||||||||||||
| Income tax expense | (15) | (314) | (329) | ||||||||||||||||
| Total assets | 7,506 | 18,628 | 26,134 | ||||||||||||||||
| Total liabilities | (1,483) | (4,522) | (6,005) | ||||||||||||||||
| A reconciliation of adjusted EBITDA to profit before tax is provided as follows: | |||||||
| six months to | six months to | year ended | |||||
| 30/06/14 | 30/06/13 | 31/12/13 | |||||
| £000 | £000 | £000 | |||||
| Adjusted EBITDA for reportable segments | 1,840 | 1,733 | 3,497 | ||||
| Depreciation, amortisation and impairment charges | (186) | (152) | (375) | ||||
| Share-based payment charges | (68) | (40) | (191) | ||||
| Finance income | 27 | 22 | 50 | ||||
| Finance cost of contingent consideration | (21) | (48) | (78) | ||||
| Profit before tax | 1,592 | 1,515 | 2,903 |
| 4. Earnings per share | |||||||||||
| six months to | six months to | year ended | |||||||||
| 30/06/14 | 30/06/13 | 31/12/13 | |||||||||
| Weighted average number of shares in issue (000's) | 18,370 | 18,236 | 18,260 | ||||||||
| Adjusted for effects of dilutive potential ordinary shares (000's) | 1,881 | 1,217 | 1,341 | ||||||||
| Weighted average number for diluted earnings per share (000's) | 20,251 | 19,453 | 19,601 | ||||||||
| Profit attributable to owners of the Parent (£000's) | 1,374 | 1,226 | 2,574 | ||||||||
| Basic earnings per share | 7.48p | 6.72p | 14.10p | ||||||||
| Diluted earnings per share | 6.78p | 6.30p | 13.13p | ||||||||
| six months to | six months to | year ended | |||||||||
| 30/06/14 | 30/06/13 | 31/12/13 | |||||||||
| £000 | £000 | £000 | |||||||||
| Underlying profit attributable to owners of the parent | |||||||||||
| Profit attributable to owners of the parent | 1,374 | 1,226 | 2,574 | ||||||||
| Unwinding of discount on contingent consideration | 21 | 48 | 78 | ||||||||
| Prior year tax adjustments | - | - | (250) | ||||||||
| Underlying profit | 1,395 | 1,274 | 2,402 | ||||||||
| Underlying earnings per share | 7.59p | 6.99p | 13.15p | ||||||||
| Diluted underlying earnings per share | 6.89p | 6.55p | 12.25p | ||||||||
| 5. Intangible assets | |||||||||||||
| Patents, | |||||||||||||
| trademarks | |||||||||||||
| Customer | and | Development | |||||||||||
| Group | Goodwill | Brands | relationships | registrations | costs | Total | |||||||
| £000 | £000 | £000 | £000 | £000 | £000 | ||||||||
| Cost | |||||||||||||
| As at 1 January 2014 | 5,490 | 2,210 | 686 | 248 | 1,891 | 10,525 | |||||||
| Additions | - | - | - | 71 | 87 | 158 | |||||||
| As at 30 June 2014 | 5,490 | 2,210 | 686 | 319 | 1,978 | 10,683 | |||||||
| Accumulated amortisation/impairment | |||||||||||||
| As at 1 January 2014 | - | 62 | 159 | 40 | 962 | 1,223 | |||||||
| Charge for the period | - | 18 | 35 | 12 | 9 | 74 | |||||||
| As at 30 June 2014 | - | 80 | 194 | 52 | 971 | 1,297 | |||||||
| Net book value | |||||||||||||
| As at 30 June 2014 | 5,490 | 2,130 | 492 | 267 | 1,007 | 9,386 | |||||||
| As at 1 January 2014 | 5,490 | 2,148 | 527 | 208 | 929 | 9,302 |
| 6. Property, plant and equipment | |||||||||||||
| Fixtures, | Assets in the | ||||||||||||
| Land and | Plant and | fittings and | course of | ||||||||||
| Group | buildings | machinery | equipment | construction | Total | ||||||||
| £000 | £000 | £000 | £000 | £000 | |||||||||
| Cost | |||||||||||||
| As at 1 January 2014 | 2,032 | 1,073 | 464 | 163 | 3,732 | ||||||||
| Additions | - | 44 | 61 | 166 | 271 | ||||||||
| Completed assets | 105 | - | - | (105) | - | ||||||||
| Disposals | - | (43) | (68) | - | (111) | ||||||||
| As at 30 June 2014 | 2,137 | 1,074 | 457 | 224 | 3,892 | ||||||||
| Accumulated depreciation/impairment | |||||||||||||
| As at 1 January 2014 | 185 | 309 | 184 | - | 678 | ||||||||
| Charge for the period | 16 | 57 | 39 | - | 112 | ||||||||
| Disposals | - | (42) | (52) | - | (94) | ||||||||
| As at 30 June 2014 | 201 | 324 | 171 | - | 696 | ||||||||
| Net book value | |||||||||||||
| As at 30 June 2014 | 1,936 | 750 | 286 | 224 | 3,196 | ||||||||
| As at 1 January 2014 | 1,847 | 764 | 280 | 163 | 3,054 | ||||||||
1 All prior-year values have been restated under IFRS 11 to reflect the use of the equity method accounting which has replaced proportionate consolidation, see notes to the financial statements.
2 Underlying earnings per share represents profit for the period before: share based payments; impairment of acquisition intangibles; unwinding of discount on contingent consideration and prior year tax adjustments divided by the weighted average number of shares in issue.
3 Adjusted EBITDA represents operating profit £1.6m (2013: £1.5m) adjusted for: share based payments £0.07m (2013: £0.04m); and depreciation, amortisation and impairment charges of £0.19m (2013: £0.15m).
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