AVS.L Regulatory News (AVS)

RNS Number : 2107V

Avesco Group PLC

10 January 2013

 

EMBARGOED UNTIL 7.00am, 10 January 2013

 

AVESCO GROUP plc

 

Preliminary Results for the year ended 30 September 2012

 

Avesco Group plc ("Avesco" or the "Group") (AIM: AVS), the international provider of services to the corporate presentation, entertainment and broadcast markets, announces its preliminary results for the year ended 30 September 2012.

 

KEY HIGHLIGHTS

 

·; Revenue up 14% to £143.5m (2011: £125.5m)

·; Operating profit up 196% to £4.5m (2011: £1.5m)

·; Trading profit up 217% to £7.4m (2011: £2.3m)*

·; Trading EBITDA up 34% to £27.1m (2011: £20.3m)*

·; Basic earnings per share of 7.3p (2011: loss per share of 0.5p)

·; Adjusted basic earnings per share of 21.7p (2011: 2.6p)*

·; Total dividend increased up 33% to 4.0p per share (2011: 3.0p)

 

* As described in note 8, the Group uses certain non-GAAP alternative measures to assess underlying operating performance.

 

Richard Murray, Chairman, commented:

 

"It is very satisfying to be able to report on a highly successful year for the Avesco Group. The staging of the London 2012 Olympic Games and Paralympic Games on our doorstep in the UK has been an undoubted benefit. However, even excluding the impact of these events, our underlying growth has been substantial and gives us confidence for the future.

 We have gained considerable forward momentum over recent years, despite the uncertain economic situation around the world. We shall continue to seek to generate cash, grow dividends for our shareholders and ensure that our balance sheet remains strong.

 Longer term, the underlying strengths of our business in terms of people, equipment and quality of service augur well for continued growth in all our divisions."

 

 

For further information please contact:

Avesco Group plc
Richard Murray, Chairman	01293 583400
John Christmas, Group Finance Director
finnCap Ed Frisby/Rose Herbert, Corporate Finance Brian Patient/Victoria Bates, Corporate Broking	020 7220 0500

 

 

Avesco Group plc

Chairman's statement and review

It is very satisfying to be able to report on a highly successful year for the Avesco Group. The staging of the London 2012 Olympic Games and Paralympic Games on our doorstep in the UK has been an undoubted benefit. However, even excluding the impact of these events, our underlying growth has been substantial and gives us confidence for the future.

Results

During the twelve months ended 30 September 2012, our revenue grew 14% to £143.5m (2011: £125.5m). While 2012 saw significant Olympic-related turnover, in 2011 the Group benefitted from the Commonwealth Games in Delhi and extra motor shows in Europe. If these events (and the results of our former business in Monaco (sold in December 2011) are eliminated, a better comparison would show that the underlying business has achieved a like-for-like growth in revenue of 9%.

Our operating profit was £4.5m (2011: £1.5m), and after taking account of net interest costs of £1.5m (2011: £1.4m), the profit before income tax was £3.0m (2011: £0.1m). The basic earnings per share were 7.3p (2011: loss per share 0.5p), and the diluted earnings per share were 7.0p (2011: loss per share 0.5p).

The trading profit (which excludes restructuring costs, compensation for loss of office and other non-recurring costs) more than tripled to £7.4m (2011: £2.3m). The trading profit less interest and current tax was £5.5m (2011: £0.7m) and on this basis the adjusted basic earnings per share rose significantly to 21.7p (2011: 2.6p).

The Group also produced a significant improvement in trading EBITDA, which rose to £27.1m (2011: £20.3m).

As part of our approval process for large capital expenditure commitments, we seek to ensure that we have a sufficient order book visibility to justify the purchase decision. This year, with London 2012 and other events in the diary, we were able to invest a net £30.3m (2011: £15.6m) with the reasonable expectation that significant revenues would be earned. With the Olympics and Paralympics taking place so close to our financial year end, our working capital requirements increased temporarily by £4.9m which, when combined with the investments in new equipment and dividend payment for the previous financial year, contributed to a net debt cash outflow for the year of £13.6m (2011: £1.8m inflow). As a result, gearing (being net debt divided by net assets) increased to 64% at the year end (2011: 33%) although we expect this ratio to reduce going forward. The net assets of the Group grew over the year to £38.6m (2011: £37.1m) or £1.52 per share (2011: £1.46).

Creative Technology (CT)

The main driver of growth this year was Creative Technology, our largest business, with revenues up to £95.5m (2011: £80.5m) and trading profit of £4.5m (2011: £1.5m). The 2012 Olympics were a major factor, generating revenue of £6.5m. We provided services to Panasonic at many of the venues, at the torch relay for Samsung, at all four opening and closing ceremonies, the Athlete's Village and numerous corporate pavilions and hospitality projects, including the Hyde Park BT Live Events, Cisco House, the BA Live Site, Russia Sochi Park and Holland Heineken House. Dimension Audio, a division of CT, also provided sound systems to Sports Technology, in which the Group has a 40% interest, at many venues around the country.

While London was the focus of much of the world's attention, the underlying performance in CTUS was particularly strong and CT Europe also performed well in a difficult market in mainland Europe.

Creative Technology Asia Pacific ("CTAP"), the business we set up in China four years ago, failed to reach its break even target and, disappointingly, losses there were in excess of £1m. In deciding to start up CTAP from scratch, we recognised that there would be challenges and that it may take some time before the business becomes fully established and profitable. CTAP provides an important service to our international clients at their events in the region and therefore we still regard a presence in the region as material to CT's long term strategy. However, in order to enable us to move the business to the next level, we recognise the need to add more local clients to our portfolio of inbound work from the rest of the world. As a result, we have strengthened the CTAP management team over the summer by recruiting additional Chinese nationals and we look forward to the benefits of their local knowledge and expertise leading to an improvement in our results in the region.

Last year we brought our CT operations around the world up to 17 locations with the opening of an office in Qatar, alongside our other Middle East operation in Dubai. These businesses share equipment and personnel as required and it is very pleasing to be able to report a positive contribution to profit from the region for the first time.

The trend for some clients to prefer to source all of their show requirements from a single supplier has continued. In response, we plan to build upon our expertise in video and audio by further expanding our lighting stock in 2013 with the aim of broadening the range of services that we offer and to enhance the level of support that we can provide to our major customers.

Full Service

Our Full Service businesses had another strong year with a trading profit of £1.1m (2011: £0.4m) despite revenues down slightly at £19.4m (2011: £20.8m). These figures are somewhat distorted by the inclusion of our full service business in Monaco that was sold in December 2011. Excluding the Monaco business, revenue increased significantly to £19.4m (2011: £17.8m), and trading profit more than doubled to £1.1m (2011: £0.4m).

Whilst the performance in mainland Europe showed modest growth in profitability, UK-based MCL, the division's largest business, did exceptionally well. A good year for MCL was bolstered by a busy Olympics' period, when MCL worked for a number of clients, including providing its services at various Olympics soccer venues around the country.

Broadcast Services

Revenue for our Broadcast Services division grew comfortably to £28.6m (2011: £24.3m) with trading profit also up to £2.3m (2011: £0.8m). Of the two businesses that make up this division, Fountain Studios continued to produce strong profits, albeit down on the previous year, and Presteigne Charter was able to benefit from the 2012 Olympics by supplying television facilities and equipment to broadcasters from the Americas, Asia, Australia and across Europe. A strategic review of the Presteigne Charter business at the end of the year resulted in a restructure of its projects division, which contributed to higher than budgeted operating expenses.

Dividend

As indicated in last year's Report and Accounts, we were able to reintroduce an interim dividend at the half year of 1.0p per share (2011: nil), which was paid in October 2012. The Board is now pleased to announce that it proposes a final dividend of 3.0p per share, making a total dividend of 4.0p per share for the year (2011: 3.0p), an increase of one third, reflecting both the outstanding results achieved in 2012 and our confidence in the longer term prospects for the Group.

 

The proposed dividend is expected to be paid on 8 April 2013 to shareholders on the register at the close of business on 15 March2013.

 

Disney

 

The Group has an economic interest in the outcome of litigation brought by Celador International against the Walt Disney Company and others ("Disney"). Celador was awarded $319m in damages and pre judgement interest and, if paid in full, the Group's share after costs is estimated to be $60m. Disney appealed the decision and their appeal was rejected on 3 December 2012. On 31 December 2012, Disney filed a petition to seek leave for a rehearing of the appeal by the United States Ninth Circuit Court of Appeals en banc. The filing of the petition is the next stage in the appeal process and stays the enforcement of the judgement until the appeal process is complete. We shall of course provide further updates, as appropriate, in due course. It remains the Board's current intention to distribute to shareholders the majority of the net monies received, after costs and taxes.

Current Trading

After a busy end to 2012, the new financial year has started more slowly. In the UK, some major corporations appear to have used much of their 2012 events budget on the Olympics and as a result we are seeing a reduced spend in the final quarter of the calendar year. In the US, uncertainties caused by the Presidential election and then the delay in reaching an agreement on federal fiscal policy appear to have held back demand from customers in certain areas. In the Eurozone, the continuing economic difficulties in the region have not been helpful while, in the Middle East, some major events, to which we provided services in the early part of 2011/12, have either been delayed or have not repeated this year. However, we are now seeing some encouraging results from our operations in China as well as firm evidence of an upturn in business in the first few months of the 2013 calendar year, both in the UK and the US.

People

The 2012 London Olympics put an unprecedented strain on all of the staff involved including many from our overseas offices who were drafted in to help. Many staff, including those who were not directly involved, worked extended and unsocial hours to ensure that our customers received the excellent service that they have come to expect. There is no doubt that the quality of our staff is the major factor in our continued success and I would take this opportunity to thank them all.

We are delighted to announce that Ami Giniger has been appointed as non-executive Deputy Chairman. Ami has served as a non-executive Director of the Company since March 2011 and brings significant commercial and industry experience to the Board.

Future Prospects

Whilst 2012 results have been good, we must move on to the challenges of 2013, where we will not have the benefit of any major events of the same scale as last year to lift our revenue further. We expect the major capital expenditure programme in 2012 to stand us in good stead and allow us to spend less this year as we look to reduce our net debt, while still leaving us well placed to maintain strong underlying growth.

We have gained considerable forward momentum over recent years, despite the uncertain economic situation around the world. We shall continue to seek to generate cash, grow dividends for our shareholders and ensure that our balance sheet remains strong.

Longer term, the underlying strengths of our business in terms of people, equipment and quality of service augur well for continued growth in all our divisions.

 Avesco Group plcConsolidated Income Statement

For the year ended 30 September 2012

 

		Year ended 30 September
		2012	2011
	Note	£000s	£000s
Revenue	1	143,452	125,529
Cost of sales		(93,246)	(82,965)
Gross profit		50,206	42,564
Operating expenses		(45,979)	(41,046)
Share of associate's profit		271	-
Operating profit	1	4,498	1,518
Finance income		51	6
Finance costs		(1,586)	(1,422)
Profit before income tax		2,963	102
Income tax expense	3	(1,108)	(236)
Profit/(loss) for the financial year		1,855	(134)
		Pence per share	Pence per share
Earnings/(losses) per share attributable to the equity holders of the company (note 4)
- basic		7.3p	(0.5)p
- diluted		7.0p	(0.5)p

 

 

 

Avesco Group plc

Alternative Performance Measures (non-GAAP)

For the year ended 30 September 2012

			Year ended 30 September
			2012	2011
			£000s	£000s
	Operating profit		4,498	1,518
	Adjusted to exclude:
	Restructuring costs and compensation for loss of office		2,458	669
	Other non-recurring costs		428	140
	Trading profit		7,384	2,327
	Net finance costs		(1,535)	(1,416)
	Trading profit after net finance costs		5,849	911
	Current tax expense (note 3)		(346)	(247)
	Trading profit after net finance costs and current tax expense		5,503	664
	Trading EBITDA (note 2)		27,147	20,262
	Adjusted earnings per share (per note 4)		Pence per share	Pence per share
	- basic		21.7p	2.6p
	- diluted		20.8p	2.6p

 

 

Refer to note 8 for a full description of the alternative performance measures adopted by the Group.

 

 

 

Consolidated Statement of Comprehensive Income

For the year ended 30 September 2012

 

 

 

		Year ended 30 September
		2012	2011
		£000s	£000s
Profit/(loss) for the financial year		1,855	(134)
Other comprehensive expense:
Currency translation differences		(143)	(98)
Total comprehensive income/(expense) for the year		1,712	(232)

 

 

 

Avesco Group plcConsolidated balance sheet

As at 30 September 2012

 

		Year ended 30 September
		2012	2011
		£000s	£000s
Assets
Non-current assets
Property, plant and equipment		61,786	55,186
Intangible assets		130	179
Investment in associate		271	-
Deferred income tax assets		6,707	6,117
Trade and other receivables		159	182
		69,053	61,664
Current assets
Inventories		1,794	1,507
Trade and other receivables		26,573	23,590
Current income tax assets		86	85
Cash at bank and on hand		4,345	7,501
		32,798	32,683
Total assets		101,851	94,347
Liabilities
Non-current liabilities
Borrowings and loans		21,662	14,157
Deferred income tax liabilities		4,425	3,041
Provisions for other liabilities and charges		432	491
		26,519	17,689
Current liabilities
Trade and other payables		28,540	33,242
Current income tax liabilities		544	656
Borrowings and loans		7,448	5,483
Provisions for other liabilities and charges		189	204
		36,721	39,585
Total liabilities		63,240	57,274
Total assets less total liabilities		38,611	37,073
Equity
Capital and reserves attributable to equity holders of the company
Ordinary shares		2,599	2,599
Share premium		23,286	23,286
Translation reserve		(27)	116
Retained earnings		12,753	11,072
Total equity		38,611	37,073

 

Avesco Group plc

Consolidated Statement of Changes in Equity

For the year ended 30 September 2012

 

	Share capital account	Share premium account	Translation reserves	Retained earnings	Total
Group	£000s	£000s	£000s	£000s	£000s
Balance at 1 October 2011	2,599	23,286	116	11,072	37,073
Profit for the period	-	-	-	1,855	1,855
Other comprehensive expense, net of tax	-	-	(143)	-	(143)
Total comprehensive income for the period	-	-	(143)	1,855	1,712
Transactions with owners in their capacity as owners:
External dividends paid	-	-	-	(761)	(761)
LTIP and share options	-	-	-	587	587
Balance at 30 September 2012	2,599	23,286	(27)	12,753	38,611

 

	Share capital account	Share premium account	Translation reserves	Retained earnings	Total
	£000s	£000s	£000s	£000s	£000s
Balance at 1 October 2010	2,599	23,286	214	11,151	37,250
Loss for the period	-	-	-	(134)	(134)
Other comprehensive expense, net of tax	-	-	(98)	-	(98)
Total comprehensive expense for the period	-	-	(98)	(134)	(232)
Transactions with owners in their capacity as owners:
External dividends paid	-	-	-	(254)	(254)
LTIP and share options	-	-	-	309	309
Balance at 30 September 2011	2,599	23,286	116	11,072	37,073

 

Avesco Group plcConsolidated cash flow statement

For the year ended 30 September 2012

		Year ended 30 September
		2012	2011
		£000s	£000s
Cash flows from operating activities
Cash generated from continuing operations		19,715	19,368
Net interest paid		(1,517)	(1,422)
Income tax paid		(466)	(62)
Net cash generated from operating activities		17,732	17,884
Cash flows from investing activities
Purchases of property, plant and equipment and software		(32,539)	(17,954)
Proceeds from sale of property, plant and equipment		1,831	2,332
Proceeds from disposal of investments		403	-
Net cash used in investing activities		(30,305)	(15,622)
Cash flows from financing activities
Proceeds from borrowings		18,128	8,901
Repayments of external borrowings		(8,258)	(10,000)
Dividends paid to Company's shareholders		(761)	(254)
Net cash generated from/(used in) financing activities		9,109	(1,353)
Cash used in discontinued operations		(247)	(262)
Net (decrease)/increase in cash and cash equivalents		(3,711)	647
Cash, cash equivalents and bank overdrafts at beginning of year		7,501	6,896
Exchange gains/(losses) on cash and bank overdrafts		326	(42)
Cash and cash equivalents at end of year		4,116	7,501

 

 

 

Avesco Group plc

Notes to the preliminary announcement

For the year ended 30 September 2012

 

 

1. Segmental information

 

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions.

 

The Board of Directors categorises Group companies based on the services they provide and as a result the business is split into four segments. These correspond to three operating segments (Creative Technology, Full Service and Broadcast Services) which together provide the Group's principal activity of services to the corporate presentation, entertainment and broadcast markets. In addition, the Group recognises a further segment, Head Office, which provides administrative support to the rest of the Group.

 

Creative Technology provides specialist AV services and equipment to the live events, broadcast and entertainment markets. The Full Service segment consists of companies which provide full technical support for conferences, sports, music, corporate and television programmes. Finally, the Broadcast Services segment provides broadcast equipment, systems and services to the broadcast industry.

 

The Board of Directors assesses performance of the operating segments based on trading profit (see note 8). As segmental performance does not therefore include finance costs and tax, such items are not allocated to segments.

 

The segmental results for the year ended 30 September 2012 are as follows:

 

	Creative Technology	Full Service	Broadcast Services	Head Office	Group
	£000s	£000s	£000s	£000s	£000s
Total segment revenue	96,232	19,988	29,653	-	145,873
Inter segment revenue	(753)	(601)	(1,067)	-	(2,421)
Revenue	95,479	19,387	28,586	-	143,452
Trading EBITDA*	17,512	1,874	8,238	(477)	27,147
Less depreciation	(12,932)	(787)	(5,914)	(12)	(19,645)
Less amortisation	(54)	(32)	(31)	(1)	(118)
Trading profit/(loss)	4,526	1,055	2,293	(490)	7,384
Restructuring costs and compensation for loss of office	(298)	(103)	(1,194)	(863)	(2,458)
Other non-recurring credits/(costs)	7	-	10	(445)	(428)
Operating profit/(loss)	4,235	952	1,109	(1,798)	4,498
Net finance costs					(1,535)
Profit before income tax					2,963
Income tax expense					(1,108)
Profit for the financial year					1,855

 

\* Trading EBITDA includes profit on sale of property, plant and equipment of £859,000 for Creative Technology, £21,000 for Full Service and £422,000 for Broadcast Services.

 

 

The segmental results for the year ended 30 September 2011 are as follows:

 

	Creative Technology	Full Service	Broadcast Services	Head Office	Group
	£000s	£000s	£000s	£000s	£000s
Total segment revenue	81,154	20,931	24,608	-	126,693
Inter segment revenue	(685)	(122)	(357)	-	(1,164)
Revenue	80,469	20,809	24,251	-	125,529
Trading EBITDA*	12,212	1,681	6,710	(341)	20,262
Less depreciation	(10,580)	(1,217)	(5,885)	(8)	(17,690)
Less amortisation	(133)	(69)	(41)	(2)	(245)
Trading profit/(loss)	1,499	395	784	(351)	2,327
Restructuring costs	(300)	(299)	(70)	-	(669)
Other non-recurring and prior year costs	-	-	-	(140)	(140)
Operating profit/(loss)	1,199	96	714	(491)	1,518
Net finance costs					(1,416)
Profit before income tax					102
Income tax expense					(236)
Loss for the financial year					(134)

 

* Trading EBITDA includes profit on sale of property, plant and equipment of £103,000 for Creative Technology, £768,000 for Full Service and £931,000 for Broadcast Services.

 

Inter-segment transactions are entered into under the normal commercial terms and conditions that would be available to unrelated third parties.

 

No single customer contributed revenues of greater than 5% of the Group's total revenue for 2011 or 2012.

 

Revenue recognised in the income statement is analysed as follows:

 

		2012	2011
Revenue		£000s	£000s
Revenue from audiovisual and broadcast services		143,452	125,529
Interest income		5	6
		143,457	125,535

 

The revenue listed above cannot be further split between hire of goods and provision of services as the sales are interlinked and viewed as one amount.

 

The segmental assets and liabilities at 30 September 2012, external net debt at 30 September 2012 and capital expenditure cash flows for the year then ended are shown below.

 

		Creative Technology	Full Service	Broadcast Services	Head Office	Unallocated	Group
		£000s	£000s	£000s	£000s	£000s	£000s
Total assets		62,127	8,456	34,662	(10,187)	6,793	101,851
Non-current assets		36,154	2,561	23,453	19	6,707	68,894
Total liabilities		29,081	3,805	10,081	15,304	4,969	63,240
Capital expenditure		26,069	1,629	4,840	1	-	32,539
External net debt		5,371	(1,968)	613	20,749	-	24,765

 

Unallocated items relate to deferred tax and income tax. Total assets in the 'Head Office' segment are shown as a credit balance primarily as a result of the offset arrangement the Group has with HSBC Bank plc. This is structured in such a way that every company in the pool is jointly and individually liable for the overdraft and, therefore, in practice the net position is applicable.

 

 

The segmental assets and liabilities at 30 September 2011, external net debt at 30 September 2011 and capital expenditure cash flows for the year then ended are shown below.

 

		Creative Technology	Full Service	Broadcast Services	Head Office	Unallocated	Group
		£000s	£000s	£000s	£000s	£000s	£000s
Total assets		53,811	7,739	34,551	(7,956)	6,202	94,347
Non-current assets		26,757	2,438	26,141	29	6,117	61,482
Total liabilities		28,319	4,074	9,584	11,600	3,697	57,274
Capital expenditure		10,079	1,161	6,679	35	-	17,954
External net debt		(3,348)	(1,082)	1,635	14,934	-	12,139

 

The Group's main business segments operate in four main geographical areas. Details of the segmental allocation of revenue, assets and capital expenditure can be found below.

 

		2012	2011
Revenue		£000s	£000s
United Kingdom		50,462	45,063
Mainland Europe		28,721	29,181
United States of America		43,705	39,216
Rest of the World		20,564	12,069
		143,452	125,529

 

Revenue is allocated based on the country in which the customer is located.

 

 

		2012	2011
Total assets		£000s	£000s
United Kingdom		49,960	46,987
Mainland Europe		17,354	13,815
United States of America		21,131	17,267
Rest of the World		6,613	10,076
		95,058	88,145
Unallocated assets		6,793	6,202
		101,851	94,347

 

Total assets are allocated based on where the assets are owned.

 

		2012	2011
Total non-current assets (other than deferred tax assets)		£000s	£000s
United Kingdom		34,596	36,130
Mainland Europe		10,352	6,538
United States of America		13,762	8,696
Rest of the World		3,477	4,001
		62,187	55,365
Unallocated assets		6,707	6,117
		68,894	61,482

 

Total non-current assets (other than deferred tax assets) are allocated based on where the assets are owned.

 

		2012	2011
Capital expenditure		£000s	£000s
United Kingdom		11,171	11,052
Mainland Europe		7,982	2,545
United States of America		11,673	3,042
Rest of the World		1,713	1,315
		32,539	17,954

 

Capital expenditure is allocated based on where the assets are owned or leased.

 

2. Trading earnings before interest, taxation, depreciation and amortisation ('Trading EBITDA')

 

 

		2012	2011
		£000s	£000s
Trading profit		7,384	2,327
Depreciation		19,645	17,690
Amortisation of software		118	245
Trading EBITDA		27,147	20,262

 

 

 

3. Income tax expense

 

		2012	2011
		£000s	£000s
Current tax
Current tax on profits for the year		358	272
Adjustments in respect of prior years		(12)	(25)
Total current tax		346	247
Deferred tax
Origination and reversal of temporary differences		515	(254)
Impact of change in the UK tax rate		247	243
Total deferred tax		762	(11)
Income tax charge		1,108	236

 

 

 

 

 

4. Earnings/(losses) per share

 

	2012	2011
	£000s	£000s
Profit/(loss) from continuing operations	1,855	(134)
Restructuring costs and compensation for loss of office	2,458	669
Other non-recurring costs	428	140
Deferred tax charge/(credit)	762	(11)
Trading profit after net finance costs and current tax expense	5,503	664
Weighted average number of shares (net of treasury shares)
For basic earnings per share (000's)	25,393	25,264
Effect of dilutive share options (000's)	1,020	-
For diluted earnings per share (000's)	26,413	25,264
Earnings/(losses) per share
Basic	7.3p	(0.5)p
Diluted	7.0p	(0.5)p
Adjusted basic	21.7p	2.6p
Adjusted diluted	20.8p	2.6p

 

 

Basic earnings per share have been calculated by dividing profit/loss for the period by the weighted average number of ordinary shares in issue during the period.

 

Diluted earnings per share have been calculated by dividing profit/loss for the period by the weighted average number of ordinary shares in issue during the period, adjusted for any awards under the Company's Long Term Incentive Plan ("LTIP") where pre-specified performance conditions have been satisfied and any required conversion of dilutive potential options. There is no dilution in the prior period as the performance conditions had not yet been satisfied for the outstanding LTIP awards. Losses are not subject to dilution.

 

Adjusted earnings per share have been calculated as per note 8.

 

 

5. Dividends

 

An interim dividend for the year ended 30 September 2012 of 1.0p per share amounting to a total of £254,000 was approved and was paid on 1 October 2012 to shareholders on the Register at 6.00pm on 14 September 2012.

 

A final dividend for the year ended 30 September 2011 of 3.0p per share amounting to a total of £761,000 was approved and was paid on 31 May 2012 to shareholders on the register at 6.00pm on 10 April 2012. A final dividend for the year ended 30 September 2010 of 1.0p per share amounting to a total of £254,000 was approved by shareholders and was paid on 6 April 2011 to shareholders on the register at 6.00pm on 11 March 2011.

 

A final dividend for the year ended 30 September 2012 of 3.0p per share has been proposed and, subject to shareholders' approval, will be paid on 8 April 2013 to shareholders on the register at the close of business on 15 March 2013.

 

 

6. Analysis of net debt

 

		At 1 October 2011	Net cash flow	Other non cash changes	Currency translation differences	At 30 September 2012
		£000s	£000s	£000s	£000s	£000s
Cash at bank and in hand		7,501	(3,484)	-	328	4,345
Bank overdrafts		-	(227)	-	(2)	(229)
Net cash		7,501	(3,711)	-	326	4,116
Bank loans due in less than one year		-	-	-	-	-
Bank loans due in more than one year		(10,020)	(4,000)	-	375	(13,645)
Finance lease obligations due in less than one year		(5,483)	3,549	(5,405)	120	(7,219)
Finance lease obligations due in more than one year		(4,137)	(9,419)	5,405	134	(8,017)
Net debt		(12,139)	(13,581)	-	955	(24,765)
		At 1 October 2010	Net cash flow	Other non cash changes	Currency translation differences	At 30 September 2011
		£000s	£000s	£000s	£000s	£000s
Cash at bank and in hand		6,896	647	-	(42)	7,501
Bank overdrafts		-	-	-	-	-
Net cash		6,896	647	-	(42)	7,501
Bank loans due in less than one year		-	-	-	-	-
Bank loans due in more than one year		(12,363)	2,401	-	(58)	(10,020)
Finance lease obligations due in less than one year		(5,279)	4,273	(4,443)	(34)	(5,483)
Finance lease obligations due in more than one year		(2,979)	(5,575)	4,443	(26)	(4,137)
Net debt		(13,725)	1,746	-	(160)	(12,139)

 

Non cash changes comprise transfers between categories of bank loans and finance lease obligations.

 

 

7. Status of preliminary announcement

 

The financial information set out in this announcement for the year ended 30 September 2012 does not constitute the Group's statutory accounts as defined by s435 of the Companies Act but has been extracted from the 2012 statutory accounts on which an unqualified audit report has been made by the auditors, and which did not contain an emphasis of matter paragraph nor a statement under section 498(2) or (3) of the Companies Act 2006.

 

Statutory Accounts for the year ended 30 September 2011 have been delivered to the Registrar of Companies and the auditors' report on these accounts was unqualified and did not contain a statement under either Section 498(2) or (3) of the Companies Act 2006.

 

 

8. Basis of preparation

 

The preliminary results for the year ended 30 September 2012 have been prepared in accordance with the accounting policies set out in the annual report and accounts for the year ended 30 September 2011.

 

For the purposes of this preliminary announcement and the annual report and accounts, the Group uses alternative non-Generally Accepted Accounting Practice ("non-GAAP") financial measures which are not defined within IFRS. The Directors use these measures in order to assess the underlying operational performance of the Group, and as such, these measures are important and should be considered alongside the IFRS measures. The following non-GAAP measures are referred to in the preliminary announcement:

 

a) Trading profit/(loss)

 

'Trading profit/loss' is separately disclosed, being defined as operating profit adjusted to exclude restructuring costs and compensation for loss of office and other non-recurring costs. Other non-recurring costs relate to items which management believe do not accurately reflect the underlying trading performance of the business in the period. Examples of other non-recurring costs are profit/loss on disposal of investments and one off consultancy and legal costs incurred which management believe do not accurately reflect the trading performance of the business. The Directors believe that trading profit/loss is an important measure of the underlying performance of the Group.

 

b) Adjusted earnings per share

 

'Adjusted earnings per share' is calculated by dividing the profit for the period excluding restructuring costs and compensation for loss of office, other non-recurring costs and the deferred tax charge/credit by the weighted average number of ordinary shares in issue during the period. The Directors believe that adjusted earnings per share provides an important measure of the underlying performance of the Group.

 

c) Trading EBITDA

 

Trading earnings before interest, taxation, depreciation and amortisation ('Trading EBITDA') is separately disclosed, being defined as trading profit/loss adjusted to exclude depreciation and amortisation of software. The Directors believe that trading EBITDA is an important measure of the underlying performance of the Group.

 

 

9. Annual general meeting

 

The Annual General Meeting of the Company will be held at 9.30am on 14 March 2013 at Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH.

 

 

10. Annual report and accounts

 

Copies of the full Statutory Accounts will be dispatched to shareholders in due course. Copies will also be available on the Company's website (www.avesco.com) and from the registered office of the Company: Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH.

 

 

 

 

This information is provided by RNS

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