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Interim Results

12 Feb 2014 07:00

RNS Number : 8503Z
Avanti Communications Group Plc
12 February 2014
 

Avanti Communications Group plc

Interim Results Announcement

London - 12 February 2014. Avanti Communications Group plc (AIM: AVN, "Avanti" or "the Company"), the satellite operator, has published today its unaudited interim results for the six months ended 31 December 2013.

 

 

Key developments

 

• Revenues up 81%

• 40 new contracts in the period of which 14 are increased order sizes

• Continuing sales momentum with high quality global telco and media customers

• Artemis satellite acquisition completed, spectrum transferred and marketing of service commenced

• $370m bond placed on competitive terms to re-finance and extend maturities

 

 

Financial highlights

• Revenues increased by 81% to $25.0 million (2012: $13.8m million)

• Positive EBITDA of $1.0 million (2012: $7.4 million negative)

• Cash at period end of $78.3 million (2012: $81.8m)

• Backlog at 31 December 2013 of $455 million

• Strong sales momentum in all product categories

 

Commenting, John Brackenbury, CBE, Avanti Chairman said:

 

"Revenues almost doubled in the period showing that we are building strong sales momentum. The efficiencies generated by the use of Ka band, and the Quality and Flexibility of our design have generated enduring competitive advantages for Avanti. Predicting growth in new markets is an imprecise science, but we are now exporting to 88 countries and to 122 customers including some of the best names in telecoms, media and specialist satellite service providers, giving a strong basis for confidence."

 

 

 

For further information please contact:

 

Avanti Communications Group Plc Tel: +44 (0) 20 7749 1600

David Williams, Chief Executive

Nigel Fox, Finance Director

 

Cenkos Securities plc Tel: +44 (0) 20 7397 8900

Max Hartley (Nomad)/Julian Morse

 

Jefferies Hoare Govett Tel: +44 (0) 20 7029 8000

Neil Collingridge/John Fishley

Tulchan Communications Tel: +44 (0) 20 7353 4200James Macey-White

 

 

 

 

About Avanti

 

· Avanti is a carriers' carrier, selling wholesale data telecoms to service providers which use them to create networks for enterprise, carrier, government and consumer users.

· Avanti serves customers in Europe, Middle East and Africa.

· Avanti's network consists of three satellites in orbit plus a fourth under construction and an international fibre network connecting data centres in several countries.

· Customers access the fleet through the Avanti Cloud platform, the most powerful proprietary system in the Industry.

· Avanti has Ka band (and some Ku and S band) spectrum filings in the ITU Master Register at 33.5°W, 21.5° East and 31.0° East

 

Chairman's Statement

 

Overview

 

I am pleased to present the results for the six months ended 31 December 2013. During the period, acceptance of our products amongst mainstream telecoms, media and VSAT service providers continued to grow well. We made good progress in each of our main product categories and in all geographies. The Company is growing strongly whilst maintaining high levels of network performance and customer service.

 

The transaction to acquire the Artemis satellite enables us to offer a new product set to certain mainly government customers, but also brought new spectrum which we expect to be able to use to support the launch of a new satellite at some time before 2020.

 

The completion of a $370m bond issue was important for Avanti since it extended maturities to 2019 on competitive terms whilst greatly improving our financial flexibility to engage in transactions like Artemis.

 

Revenues almost doubled in the period showing that we are building strong sales momentum. The efficiencies generated by the use of Ka band, and the Quality and Flexibility of our design have generated enduring competitive advantages for Avanti. Predicting growth in new markets is an imprecise science, but we are now exporting to 88 countries and to 122 customers including some of the best names in telecoms, media and specialist satellite service providers, giving a strong basis for confidence.

 

 

Operational review

 

Avanti's business model is based on providing high speed data communications services using Ka band satellites, which greatly reduces the cost per Megabit; and a highly resilient IP Cloud infrastructure which enables customers to build and configure networks with enormous flexibility and zero capital commitment. This concept is unique in our industry and is the source of competitive advantage.

 

We signed 40 contracts in the half. 26 were new customers and 14 were repeat customers. Last year we recognised that the telecoms industry was in a period of investment conservatism and structured contract proposals to make doing business with Avanti as riskless as possible, the success of this strategy is seen in contract volumes. Although small contracts do not add greatly to backlog, providing good service to high quality telcos is likely to result in enduring business relationships that build backlog over time with multiple repeat orders and extensions.

 

Backlog grew to $455m, accounted for in the following proportions: Enterprise, 48% Carrier Services 2%, Broadband 30% and Government 20%. $76m of backlog relates to 2015. The growth in customer numbers is expected to feed through to utilisation with increased orders from low initial commitments. Peak utilisation rates were, on HYLAS1: 49% (Jun 13 45%) and on HYLAS2 21% (Jun 13 15%).

 

 

Our four core application markets: Enterprise; Government; Carrier Services and Broadband all showed good progress in the period.

 

In Enterprise, we signed up a number of the largest and most respected international VSAT companies in the industry including Globecomm, Speedcast, Hermes and Internet Solutions and increased business with several existing customers. Our Satellite News Gathering ("SNG") product is now well established with many of the World's largest broadcasters and we were entrusted with work on some of the most significant television events. We worked with several broadcasters on South African events in December and are currently broadcasting from the Winter Olympics in Sochi. We expect to see growth from substitution in this SNG market as the move to Ultra HD favours our very high capacity low cost up links.

 

In Carrier Services, we extended business with our first cellular backhaul Mobile Network Operator ("MNO") customer, and launched service for three separate MNO networks during the period. The opportunity is good in Europe and very large across Africa because most MNOs are striving to deliver coverage commitments and seek new subscriber revenues. Avanti helps them to do this at low cost.

 

In Government, the launch of Avanti Government Services has made an impact on our ability to promote ourselves as the high security provider of choice. We were awarded a $15m project to build a high value-added network in one African country and are confident that more strong government business will be forthcoming shortly.

 

In Broadband, we have made installations with the incumbent telcos in each of our main markets in Africa during the period. In Europe, previously weak markets in the South are showing signs of confidence and sales have picked up. Broadband in Europe is the only market in which price is weak.

The Avanti fleet performed with above 99.9% reliability in the period. This is largely a factor of the resilience built into the ground network which is unique amongst competitors.

 

Construction of HYLAS 3 is on schedule for launch of commercial service in 2016. The capacity is planned to serve West Africa, but the entire payload is steerable and so the markets could be changed.

 

The Avanti Cloud is a World leading IP platform that provides very flexible access to the Avanti satellite fleet. During the period our R&D team introduced a number of new innovations designed to enhance flexibility and also to make installations more automated. Several of these are the subject of patents pending.

 

The acquisition of the Artemis satellite from the European Space Agency was completed on December 31st. Upfront consideration was nil, and Avanti assumed modest ongoing operating costs. The satellite has 0.5Gb of Ka band capacity in a powerful steerable beam available for sale to data relay customers, as well as mobile communications and navigation payloads. It also brought spectrum filings in the ITU master register at Ka, S, L and Ku band. The satellite is expected to have a remaining useful life of at least three years, and give us an opportunity to place a new satellite into the orbital position at 21.5°E at any time up to 2020.

 

 

 

Results

 

Our financial results are reported in US dollars for the first time. The Board determined that the functional currency of Avanti Communications Group plc became US dollars following the issuance of the high yield bond in October 2013. Furthermore, with revenues forecast to be predominantly invoiced in US dollars and interest also US dollar denominated, it is now appropriate to commence reporting group results in that currency.

Prior periods have been translated at the rates prevailing at that time and a table of indicative exchange rates used is included in note 10 at the end of these financial statements.

Income Statement

Revenues for the six month period to 31 December 2013 were $25.0 million, an increase of 81% over the same period last year and 36% higher than the six months to 30 June 2013.

The gross loss increased to $12.6 million (2012: $10.1 million) primarily as a result of a full period depreciation charge of $22.5 million (2012: $15.4 million) following the launch of HYLAS 2. In addition in the period there were some additional one off ground station expenditures to support the MNO backhaul projects.

Overheads in the period were $16.6 million (2012: $14.3 million) which is slightly higher in dollar terms compared to the 6 months to June 2013 of $14.2 million. However, currently the majority of overheads are sterling denominated, primarily staff costs, and are as such, subject to variances in dollar/sterling exchange rates.

EBITDA was positive at $1.0 million (2012: loss of $7.4 million). 

Interest expenses increased in line with the new bond financing which was completed in October 2013 and attracts a coupon of 10% payable semi-annually in April and October each year. The finance charges also include costs of repaying the previous facility early together with the costs of raising the bond which are charged to the income statement over the 6 year life of the bond.

We have chosen, in accordance with the relevant accounting standards not to recognise any deferred tax credit in the current period. Avanti already carries a significant deferred tax asset and also has unclaimed capital allowances on the two satellite assets which will shelter any tax liabilities for at least 3 years. Details of the deferred tax asset not recognised are set out in note 5.

Balance Sheet

On 31 December 2013 Avanti took ownership of the Artemis Satellite together with the orbital filings at 21.5° East. Avanti paid nil consideration for these assets and so with the exception of some de-minimis first year costs and end of life costs which have been capitalised at $1.7 million they are not shown in the balance sheet. Avanti, now, therefore has 3 orbital filings in the ITU master register that have nil carrying value on the balance sheet. These orbital filings have significant current and future value.

As shown in the exchange table in note 10 some balance sheet items have moved materially because of exchange rates with dollar sterling period end rates moving from 1.521 at June 2013 to 1.657 at December 2013.

The most significant movement in the period was the re-financing of the EXIM and COFACE facilities with a High Yield Bond. The total raised was $370 million at a rate of 10%. The bond has a 6 year term, non-callable for four and half years. The bond was nearly twice oversubscribed and the rate was 181 basis points below the average new issuer price in our credit category during the previous twelve months. The Bond is shown in the balance sheet, in accordance with IAS 39, net of the costs of issuance which are charged to the income statement on a straight line basis over the life of the 6 year bond.

Trade receivables are slightly higher at the period end reflecting both quarterly invoicing in advance for many customers, but also slightly slower than expected collections from some customers who are growing, and to whom we give credit terms rather than price reductions. Avanti has suffered only one customer failure (a European customer buying Middle East capacity) and an adjustment has been made to backlog.

Cash and cash equivalents increased by $19.6 million since June 2013.

Current liabilities fell from $55.1 million as at the end of June 2013 to $36.6 million primarily as a result of repaying the short term debt liabilities to EXIM and COFACE, and a reduction in finance lease liabilities.

Cash Flow

Cash flow from operating activities, before working capital movements, was an inflow of $2.5 million (2012: outflow $(7.4) million). Increases in accrued interest and interest paid on the repayment of the EXIM and COFACE facilities, together with capital expenditure payments of $12.9 million meant that the business absorbed cash of $26.9 million before financing activities. Financing activities added a net $44.5 million (2012: $37.1 million) to the balance sheet which with an exchange gain of $1.9 million (2012: gain $1.9 million) had the net effect of increasing cash by $19.6 million (2012: reduction $38.6 million) in the period.

Current Trading and Outlook

 

 

The second half started positively with the award of a large African government contract. We won several million dollars of broadband business in Western Europe from competitors based on quality of service advantages. Our cellular backhaul product gained new pilot projects in Africa last month, and our SNG product is currently used in high profile events like Sochi. We continue to sell to new large and expert customers and backlog is growing. Our business growth will remain difficult to forecast, but the growth in the size and quality of the customer base and a satisfying repeat order rate gives us firm belief that we are building a profitable and enduring business.

 

 

AVANTI COMMUNICATIONS GROUP PLC

 

CONSOLIDATED UNAUDITED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31 December 2013

 

Unaudited

Unaudited

Audited

Half year

Half year

Year ended

31-Dec-13

31-Dec-12

30-Jun-13

Note

$'000

$'000

$'000

Revenue

24,961

13,819

32,125

Cost of sales

(15,071)

(8,547)

(19,517)

Satellite depreciation

(22,470)

(15,367)

(38,456)

Gross loss

(12,580)

(10,095)

(25,848)

Operating expenses

(16,581)

(14,329)

(28,484)

Other operating income

7

6,500

937

1,513

Loss from operations

(22,661)

(23,487)

(52,819)

Finance income

8

56

166

441

Finance expense

8

(19,184)

(2,142)

(6,506)

Loss before taxation

(41,789)

(25,463)

(58,884)

Income tax credit

5

-

3,452

10,554

Loss for the period

(41,789)

(22,011)

(48,330)

Attributable to:

Equity shareholders of the parent

(41,540)

(21,984)

(47,736)

Non-controlling interests

(249)

(27)

(594)

Loss per share (cents)

6

(38.68 c)

(20.41 c)

(44.49 c)

Diluted loss per share (cents)

6

(38.68 c)

(20.41 c)

(44.49 c)

 

 

CONSOLIDATED UNAUDITED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 December 2013

 

Unaudited

Unaudited

Audited

Half year

Half year

Year ended

31-Dec-13

31-Dec-12

30-Jun-13

Note

$'000

$'000

$'000

Loss for the period

(41,789)

(22,011)

(48,330)

Other comprehensive income/(loss)

Exchange differences on translation of foreign operations and investments

11

21,606

7,454

(8,193)

Total comprehensive loss for the period

(20,183)

(14,557)

(56,523)

Attributable to:

Equity shareholders of the parent

(19,934)

(14,530)

(55,929)

Non-controlling interests

(249)

(27)

(594)

 

The accompanying notes form an integral part of this condensed consolidated interim financial information. All items in the statement above will be subsequently recycled to the income statement.

 

CONSOLIDATED UNAUDITED STATEMENT OF FINANCIAL POSITION

AS AT 31 December 2013

 

Unaudited

Unaudited

Audited

Half year

Half year

Year ended

31-Dec-13

31-Dec-12

30-Jun-13

$'000

$'000

$'000

ASSETS

Non-current assets

Property, plant and equipment

612,950

634,614

613,828

Intangible assets

14,260

14,465

13,512

Deferred tax assets

20,504

12,247

18,853

Total non-current assets

647,714

661,326

646,193

Current assets

Inventories

5,495

2,095

4,509

Trade and other receivables

28,582

22,003

20,685

Derivative instruments

-

25

-

Cash and cash equivalents

78,297

81,839

58,699

Total current assets

112,374

105,962

83,893

Total assets

760,088

767,288

730,086

LIABILITIES AND EQUITY

Current liabilities

Trade and other payables

32,769

23,645

28,018

Loans and other borrowings

3,808

11,044

27,043

Total current liabilities

36,577

34,689

55,061

Non-current liabilities

Trade and other payables

17,376

24,152

21,707

Loans and other borrowings

358,723

299,425

286,006

Total non-current liabilities

376,099

323,577

307,713

Total liabilities

412,676

358,266

362,774

Equity

Share capital

1,889

1,889

1,889

Share premium

415,130

415,130

415,130

Translation reserve

(1,296)

(7,255)

(22,902)

Retained earnings and other reserves

(66,700)

53

(25,443)

Total parent shareholders' equity

349,023

409,817

368,674

Non-controlling interests

(1,611)

(795)

(1,362)

Total equity

347,412

409,022

367,312

Total liabilities and equity

760,088

767,288

730,086

 

 

The accompanying notes form an integral part of this condensed consolidated interim financial information.

 

CONSOLIDATED UNAUDITED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31 December 2013

 

Unaudited

Unaudited

Audited

Half year

Half year

Year ended

31-Dec-13

31-Dec-12

30-Jun-13

$'000

$'000

$'000

Cash flow from operating activities

Loss before taxation

(41,789)

(25,463)

(58,884)

Derivative valuation

-

180

199

Interest receivable

(7)

-

-

Interest payable

19,184

1,796

-

Foreign exchange losses in operating activities

(271)

(261)

-

Depreciation and amortisation of non-current assets

23,658

16,089

39,850

Provision for doubtful debts and accrued income

1,418

(18)

2,553

Onerous lease provision

-

-

(5)

Share based payment expense

283

328

588

Cash flow from/(to) operating activities before movement in working capital

2,476

(7,349)

(15,699)

Movement in working capital:

(Increase) in inventories

(968)

(664)

(3,267)

(Increase) in trade and other receivables

(2,543)

(644)

(4,109)

Increase/(decrease) in trade and other payables

(10,160)

(14,473)

6,640

Cash absorbed by operations

(11,195)

(23,130)

(16,435)

Net interest paid

(2,781)

(2,115)

(7,977)

Net cash absorbed in operating activities

(13,976)

(25,245)

(24,412)

Cash flows from investing activities

Payments for property, plant and equipment

(12,887)

(52,390)

(73,783)

Net cash used in investing activities

(12,887)

(52,390)

(73,783)

Cash flows from financing activities

Proceeds from borrowings

370,000

39,619

43,823

Repayment of borrowings

(305,367)

(675)

(4,704)

Incremental transaction costs associated with financing

(10,816)

-

-

Loss on de-recognition of previous loans

(6,827)

-

-

Payments for finance leases

(2,446)

(1,829)

(537)

Net cash received from financing activities

44,544

37,115

38,582

Effects of exchange rate on the balances of cash and cash equivalents

1,917

1,940

(2,107)

Net increase/(decrease) in cash and cash equivalents

19,598

(38,580)

(61,720)

Cash and cash equivalents at the beginning of the period

58,699

120,419

120,419

Cash and cash equivalents at the end of the period

78,297

81,839

58,699

 

The accompanying notes form an integral part of this condensed consolidated interim financial information.

 

CONSOLIDATED UNAUDITED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31 December 2013

 

Share Capital

Share Premium

Retained Earnings

Foreign Currency Translation Reserve

Non-controlling interests

Total Reserves

$'000

$'000

$'000

$'000

$'000

$'000

At 1 July 2012

1,889

415,130

21,709

(14,709)

(768)

423,251

Loss for the period attributable to shareholders

-

-

(21,984)

-

(27)

(22,011)

Other comprehensive income

-

-

-

7,454

-

7,454

Share based payments

-

-

328

-

-

328

At 31 December 2012 (Unaudited)

1,889

415,130

53

(7,255)

(795)

409,022

At 1 January 2013

1,889

415,130

53

(7,255)

(795)

409,022

Loss for the period attributable to shareholders

-

-

(25,752)

-

(567)

(26,319)

Other comprehensive income

-

-

-

(15,647)

-

(15,647)

Share based payments

-

-

260

-

-

260

Tax credit taken directly to reserves

-

-

(4)

-

-

(4)

At 30 June 2013 (Audited)

1,889

415,130

(25,443)

(22,902)

(1,362)

367,312

At 1 July 2013

1,889

415,130

(25,443)

(22,902)

(1,362)

367,312

Loss for the period attributable to shareholders

-

-

(41,540)

-

(249)

(41,789)

Other comprehensive income

-

-

-

21,606

-

21,606

Share based payments

-

-

283

-

-

283

At 31 December 2013 (Unaudited)

1,889

415,130

(66,700)

(1,296)

(1,611)

347,412

 

The accompanying notes form an integral part of this condensed consolidated interim financial information.

 

1. General Information

 

Avanti Communications Group plc ('the Company') is a public company incorporated and domiciled in the United Kingdom. The address of its registered office is 20 Black Friars Lane, London EC4V 6EB. The Company is listed on AIM.

 

These unaudited condensed consolidated interim financial statements were approved for issue on 11 February 2014.

 

 

2. Basis of Preparation

 

These unaudited condensed interim consolidated financial statements ("the interim financial statements") for the six months ended 31 December 2013 have been prepared in accordance with IAS 34, "Interim Financial Reporting", as adopted by the EU. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2013, which have been prepared in accordance with International Financial Reporting Standards ("IFRSs"), as adopted by the EU.

 

The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2013, except as described below.

 

From 1 July 2013 the Group changed its presentational currency to USD. Comparative information has been restated in USD in accordance with the guidance defined in IAS 21. The prior period financial statements and associated notes have been retranslated from Sterling to USD in compliance with IAS 21 as follows:

· Assets and liabilities were translated at closing rate;

· Income and expenses were translated at actual rates or appropriate averages;

· Equity components were translated at historical rates;

· Differences resulting from the retranslation of the opening net assets and the results for the year have been taken to reserves.

 

The interim financial statements have not been audited or reviewed and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The audited statutory accounts for the year ended 30 June 2013 were approved by the Board of Directors on 10 September 2013 and have been delivered to the Registrar of Companies. The auditor's report on these accounts was not qualified, did not draw attention to any matter by way of emphasis and did not contain statements under section 498(2) or (3) of the Companies Act 2005.

 

 

3. Accounting Policies

Except as described below, the same accounting policies, presentation and methods of computation are followed in these condensed consolidated interim financial statements as were applied in the preparation of the Group's annual financial statements for the year ended 30 June 2013.

 

The condensed consolidated interim financial information presented does not comply with the full disclosure requirements of all applicable IFRSs.

 

 

4. Segmental reporting

The Group adopted IFRS 8, 'Operating Segments', in the financial year commencing 1 July 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Operating Decision Maker (the Avanti Executive Board) to allocate resources and assess performance.

 

All resources are allocated on the basis of satellite services. As a result, the Group only has one operating segment, being satellite services.

 

 

5. Taxation

No income tax credit or deferred tax asset has been recognised in respect of the losses for the six month period to 31 December 2013 (30 June 2013 $10.6 million tax credit recognised, 31 December 2012 $3.5 million tax credit recognised). Whilst the group foresees utilising the losses in future periods, it has taken a prudent approach and has not recognised the income tax credit or deferred tax asset in this period.

 

The group already carries a significant deferred tax asset in its balance sheet, and has unclaimed capital allowances on the two satellite assets which are expected to shelter any tax liabilities for at least three years.

 

6. Earnings per share

Unaudited

Unaudited

Audited

Half year

Half year

Year ended

31-Dec-13

31-Dec-12

30-Jun-13

$'000

$'000

$'000

Loss attributable to equity shareholders of the company

(41,540)

(21,984)

(47,736)

Weighted average number of ordinary shares for the purpose of basic

earnings per share (all measures)

107,406,589

107,721,552

107,306,711

Loss per share (cents)

(38.68 c)

(20.41 c)

(44.49 c)

Diluted loss per share (cents)

(38.68 c)

(20.41 c)

(44.49 c)

 

 

7. Other operating income

 

Unaudited

Unaudited

Audited

Half year

Half year

Year ended

31-Dec-13

31-Dec-12

30-Jun-13

$'000

$'000

$'000

Exchange gain/(loss) on trade receivables and payables

463

(261)

(353)

Ex gratia receipt

5,342

-

-

Other grant income

695

698

1,366

Liquidated damages

-

500

500

Total other operating income

6,500

937

1,513

 

The ex gratia receipt arose following a commercial settlement in relation to the Hylas 2 procurement.

 

 

8. Finance income/(expense)

Unaudited

Unaudited

Audited

Half year

Half year

Year ended

31-Dec-13

31-Dec-12

30-Jun-13

$'000

$'000

$'000

Finance income

Financing exchange gain

49

156

413

Interest income on bank deposits

7

10

28

56

166

441

Finance expense

Interest expense on borrowings and loans

(2,479)

(1,823)

(7,942)

Interest expense on bonds

Note 9

(9,744)

-

-

Fair value on derivatives

-

(180)

(199)

Loan breakage cost

(6,827)

-

-

Finance lease expense

(134)

(139)

(249)

Less: interests capitalised on satellite in construction

-

-

1,884

(19,184)

(2,142)

(6,506)

 

9. Loans and borrowings

The Company issued 10% Senior Secured Notes of $370,000,000 on 1 October 2013.

Issuer

Original Notional Value

Description of instrument

Due

Avanti Communications Group plc

$ 370 m

10% Senior Secured Notes

1 October 2019

The bond is disclosed in non-current loans and borrowings as detailed below:

Unaudited

Unaudited

Audited

Half year

Half year

Year ended

31-Dec-13

31-Dec-12

30-Jun-13

$'000

$'000

$'000

Bond

370,000

-

-

less: Debt issuance costs

(11,848)

-

-

add: Debt issuance costs for the period

494

-

-

358,646

-

-

 

The group has disclosed the bond net of the costs of debt issuance. The costs of debt issuance are amortised over the life of the bond.

 

The costs related to the bond are recognised in the income statement as follows:

Unaudited

Unaudited

Audited

Half year

Half year

Year ended

31-Dec-13

31-Dec-12

30-Jun-13

$'000

$'000

$'000

Interest charge

(9,250)

-

-

Amortisation of debt issuance costs

(494)

-

-

(9,744)

-

-

 

 

10. Exchange rates GBP/USD

The consolidated financial results are reported in US dollars for the first time. Prior periods have been translated at the rates prevailing at that time and a table of exchange rates used is presented below.

Period

Period end rate

Average rate

6 months to 31 December 2013

1.657

1.598

12 months to 30 June 2013

1.521

1.569

6 months to 31 December 2012

1.615

1.593

12 months to June 2012

1.570

1.584

 

 

11. Exchange differences on translation of foreign operations and investments

From 1 July 2013, the Group changed its presentational currency to US Dollars, and the Group parent company changed its functional currency to US Dollars. 

 

On consolidation, income statement items are translated from the functional currency of the individual entity into US dollars at average rates of exchange, and statement of financial position items are translated into US dollars at year end exchange rates. Exchange differences on the translation of the net assets of entities with functional currencies other than the US dollar are recognised directly in the foreign currency translation reserve via the statement of comprehensive income.

 

Furthermore, exchange gains and losses which arise on certain intercompany balances between the Group parent company and other Group entities are taken to the statement of comprehensive income. This is because in substance they represent part of the Group's net investment in the entities.

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR SFMEEFFLSEEE
Date   Source Headline
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12th Jun 20194:35 pmRNSPrice Monitoring Extension
10th Jun 20197:00 amRNSFinal Results
31st May 20199:36 amRNSQuarter 1 Trading Update and Notice of AGM
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16th May 201911:52 amRNSExpiration of Consent Solicitation
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8th Mar 20193:59 pmRNSUpdate on Super Senior Notes
13th Feb 201912:07 pmRNSSecond Price Monitoring Extn
13th Feb 201912:02 pmRNSPrice Monitoring Extension
11th Feb 20194:41 pmRNSSecond Price Monitoring Extn
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14th Dec 20187:00 amRNSDirectorate Change
30th Nov 20187:00 amRNSTrading Update
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2nd Oct 20187:00 amRNSAppointment of Group Company Secretary
28th Sep 20187:00 amRNSInterim Results
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10th Jul 201810:15 amRNSUpdate on Final Award in Arbitration Proceedings
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22nd Jun 201812:07 pmRNSSecond Price Monitoring Extn
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20th Jun 201812:02 pmRNSPrice Monitoring Extension
19th Jun 201812:07 pmRNSSecond Price Monitoring Extn
19th Jun 201812:02 pmRNSPrice Monitoring Extension
18th Jun 201812:07 pmRNSSecond Price Monitoring Extn
18th Jun 201812:02 pmRNSPrice Monitoring Extension

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