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Half-year Report

24 May 2016 07:00

RNS Number : 0602Z
Driver Group plc
24 May 2016
 

24 May 2016

 

DRIVER GROUP PLC

("Driver" or "the Group")

 

Interim Report

For the six months ended 31 March 2016

 

Key Points (for the six months ended 31 March 2016)

 

 

· Revenue up by 32% to £27.9m (2015: £21.1m)

 

· Gross Margin up £0.9m to £4.9m (2015: £4.0m)

 

· Underlying* loss before tax of £1.5m (2015: Underlying* loss before tax of £0.5m). Reported loss before tax of £3.4m (2015: loss of £2.1m)

 

· As a result of the loss for the period the directors do not propose an interim dividend (2015: 0.6 pence per share)

 

· Headcount increased by 17% to 541 (2015: 461)

 

· Utilisation levels reduced by 4 percentage points to 69% primarily due to due Middle East, Africa and UK (2015: 73%)

 

· Asia Pacific turned to profit in the period of £0.2m (2015: loss of £0.4m)

 

· Mainland Europe offices returned a profit of £0.2m compared to a broadly breakeven position in 2015

 

* Underlying figures are stated before the share-based payment costs and amortisation of intangible assets and exceptional items (note 6).

 

 

Steve Norris, Chairman of Driver Group, said:

 

 "During the last six months the Group has undergone profound change both in terms of management, cost control and strategic direction. After a reasonable start to the year revenues in December were poor and although only 4% below plan at that stage resulted in a significant shortfall against planned profit. The board has now set itself the goal of building on our recent cost reduction exercise to produce steady profitable performance for the foreseeable future based on the simple principles of control of cost and efficient cash collection against a background of further organic expansion in those markets where we see potential for growth."

 

 

Enquiries:

Driver Group plc

Gordon Wilkinson, Chief Executive

Tel: +44 (0) 1706 223999

Damien McDonald, Group Finance Director

Panmure Gordon (UK) Limited

Nominated Adviser & Broker

Dominic Morley / James Greenwood

Tel: +44 (0) 20 7886 2500

INTRODUCTION

During the last six months the Group has undergone profound change both in terms of management, cost control and strategic direction. After a reasonable start to the year revenues in December were poor and although only 4% below plan at that stage resulted in a significant shortfall against planned profit. The Board however at that time remained confident that the shortfall could be recovered over the year. I should say that the nature of our core business, like many professional services, is such that long term revenue forecasting is extremely challenging. With the exception of our project and programme management businesses our assignments tend to be relatively short in duration - a matter of weeks rather than months - so more precise forecasting will always be a matter of reviewing best information available. While revenues improved in the last month of the second quarter resulting in the highest ever recorded sales figure and the best monthly cash collection for a very long time, it nonetheless became evident by early May that the likely outturn for the full year would be significantly below plan not least because our review of all aged debt indicated the need to provide for £0.5m in respect of amounts deemed unlikely to be recovered in the Gulf and we therefore announced this news to the market on 10 May 2016.

 

To redress the situation the Group clearly needed to reduce its cost base significantly relative to the planned scale of the business and took action to address this during January, February and March. Dave Webster retired as Group Chief Executive to become a non-executive director and Gordon Wilkinson who had previously run our newly acquired Initiate business has taken on the role of Group Chief Executive. An extensive internal business review was conducted and is indeed ongoing which has already resulted in a programme to remove costs of approximately £0.2m per month. Much of this came from a detailed examination of all employees worldwide, releasing those non-fee earners whose roles could be discontinued or carried out elsewhere and the release of those fee earners whose earnings performance did not merit their retention. This will not mean that we will see the same saving every month because when we do need to hire good quality staff to meet demand for our services we will do so. But carefully managing the "bench" - the number of fee earners who at any one time do not have fee earning projects to work on - is the fundamental key to success in all professional services businesses and by doing so in Driver Group we can ensure that we have a permanent beneficial impact on the bottom line of the business. I am grateful to Gordon Wilkinson as well as to Mark Wheeler and David Brodie-Stedman the Chief Operating Officers of our Europe and Americas business and our Asia Pacific, Middle East and Africa operations respectively who are carrying out this difficult exercise with determination and integrity.

 

FINANCIAL RESULTS

Revenue for the first half of the financial year was £27.9m, an increase of 32% on the first half of 2015 (£21.1m). This includes £5.9m of growth in the AMEA Region and £0.9m of growth from a 6 month trading period of Initiate compared to 4 months post acquisition in 2015. Gross Profit grew by £0.9m to £4.9m when compared to the first half of 2015 (£4.0m). Administrative expenses (excluding cost of share options, exceptional items (note 6) and amortisation of intangible assets) increased by £2m to £6.5m when compared to the first half of 2015 (£4.5m). This includes the effect of an additional £0.5m bad debt provision, the addition of Initiate and increased business support in relation to the growth of the business over the second half of 2015.

 

The Group reported an underlying* loss before tax of £1.5m (2015: £0.5m). After the cost of share options, exceptional items (note 6) and amortisation of intangible assets of £1.9m (2015: £1.6m) the pre-tax loss for the period was £3.4m (2015: £2.1m).

 

The Group's effective tax rate from continuing operations is 2% (2015: 4%) reflecting losses incurred which have arisen in overseas operations which have lower tax rates. Underlying loss per share before share option costs, exceptional items and amortisation of intangible assets was 4.7p (2015: 1.4p). After share option costs, exceptional items and amortisation of intangible assets the loss per share was 10.9p (2015: 6.8p). Net assets reduced to £8.6m (2015: £12.0m).

 

The Group's net borrowings position increased from £2.5m in September 2015 to £6.8m at March 2016. Net cash outflow from operations was £3.3m (2015: £1.0m). This included a net outflow from an increase in trade and other receivables of £0.2m (2015: £0.3m) and a net cash outflow from a decrease in trade and other payables (£0.8m), principally arising from the payment of £1.4m of deferred consideration from the acquisition of Initiate partially offset by other increases (2015: net cash inflow from an increase in trade and other payables £1.2m). Acquisition of fixed assets was £0.5m (2015: £0.2m).

 

Trade and other receivables increased by £0.2m over the first half to £16.8m (30 September 2015: £16.6m). Trade and other payables remained constant over the period at £9.5m (30 September 2015: £9.5m).

 

DIVIDEND

As a result of the trading results the Board do not recommend the payment of an interim dividend (2015: 0.6p).

 

TRADING PERFORMANCE

As a result of the ambitious growth plans set last year head count increased by 17% to 541 (2015: 461) and Group revenue increased by 32% to £27.9m (2015: £21.1m). The increase in headcount has had an impact on utilisation levels which dropped 4 percentage points to 69% (2015: 73%) and the increased cost of the business has impacted on the underlying loss for the half year.

 

In APAC, Middle East and Africa revenue has increased by £5.9m to £13.9m (2015: £8.0m), but despite this growth AMEA reported an underlying loss of £0.8m compared to an underlying loss of £0.5m in 2015 arising from the increased cost base.

 

In Europe and Americas revenue was steady at £10.9m (2015: £10.9m). However costs in the period increased and the underlying profit for the period reduced to £0.1m (2015: £0.9m).

 

The Initiate business acquired in December 2014 reported revenue of £3.2m compared to £2.2m for the 4 months' trading from December 2014 to March 2015. However, investment in staff to develop this business led to the business reporting an underlying loss of £0.1m compared to a profit of £0.2m in 2015.

 

OUTLOOK

The challenge for Driver Group is to grow its business but on the basis that in future the "bench" is much more tightly controlled. The board has therefore now set itself the goal of building on our recent cost reduction exercise to produce steady profitable performance for the foreseeable future based on the simple principles of control of costs and efficient cash collection against a background of further organic expansion in those markets where we see potential for growth. We are unlikely to be opening any new office locations in the near future and will be examining the viability of all those where we do currently operate both at home and abroad. This should ensure that all offices are net producers of profits for the Group. Our overall aim is to reduce debt and consolidate client relationships worldwide. We have negotiated adequate cash resources with our bankers HSBC, to enable us to carry out this plan. We will not pay an interim dividend this year and will only look to reinstate a dividend when the board believes that it is prudent to do so having regard to our then debt position.

 

After a disappointing half year I should end on a positive note. What is enormously encouraging about Driver Group is the quality of our people. We are among the world leaders in dispute resolution and are increasing our work with leading "Magic Circle" law firms in all regions. Our quantity surveying, project and programme management capability has meant we can work with both public and private sector clients on major civil engineering projects anywhere in the world and add real value. We have been through a tough time but I look forward to the future reassured by the existence of great quality people who I thank for their hard work on your behalf and of a global civil engineering market to which we can profitably sell our high quality comprehensive services.

 

Steven Norris

Non-Executive Chairman

23 May 2016

 

 

 

 

 

 

 

 

Consolidated Income Statement

Interim report for the six months ended 31 March 2016

 

6 months ended

31 March 2016

£000

Unaudited

6 months ended

31 March 2015

£000

Unaudited

Year

ended

30 September 2015

£000

Audited

REVENUE

27,901

21,112

47,950

Cost of sales

(22,960)

(17,118)

(37,380)

 

GROSS PROFIT

 

4,941

 

3,994

 

10,570

Administrative expenses

(8,411)

(6,114)

(12,508)

Other operating income

119

88

170

Operating (loss)/profit before share-based payment costs, amortisation of intangible assets and exceptional items

 

(1,414)

 

(457)

 

1,155

Share-based payment charge and associated costs

(730)

(264)

(510)

Exceptional items (note 6)

(1,086)

(1,221)

(2,173)

Amortisation of intangible assets

(121)

(90)

(240)

OPERATING LOSS

 

(3,351)

(2,032)

(1,768)

Finance income

7

5

9

Finance costs

(103)

(41)

(104)

 

LOSS BEFORE TAXATION

 

(3,447)

 

(2,068)

 

(1,863)

Tax credit/(expense) (note 2)

63

80

(96)

 

LOSS FOR THE PERIOD

 

(3,384)

 

(1,988)

 

(1,959)

Loss attributable to non-controlling interests

(1)

(2)

-

Loss attributable to equity shareholders of the parent

(3,383)

(1,986)

(1,959)

(3,384)

(1,988)

(1,959)

Basic and diluted loss per share attributable to equity shareholders of the parent (pence) (note 5)

 

(10.9)p

 

(6.8)p

 

(6.5)p

 

 

 

Consolidated Statement of Comprehensive Income

Interim report for the six months ended 31 March 2016

 

6 months ended

31 March

2016

£000

Unaudited

6 months ended

31 March

2015

£000

Unaudited

Year

ended

30 September

2015

£000

Audited

LOSS FOR THE PERIOD

(3,384)

(1,988)

(1,959)

Other comprehensive income:

Items that could subsequently be reclassified to the Income Statement:

Exchange differences on translating foreign operations

(72)

(54)

(79)

Other comprehensive income for the year net of tax

(72)

(54)

(79)

TOTAL COMPREHENSIVE LOSS FOR THE PERIOD

(3,456)

(2,042)

(2,038)

Total comprehensive income attributable to:

Owners of the parent

(3,455)

(2,040)

(2,038)

Non-controlling interest

(1)

(2)

-

(3,456)

(2,042)

(2,038)

 

Consolidated Statement of Financial Position

At 31 March 2016

 

31 March

2016

£000

Unaudited

31 March

2015

£000

Unaudited

30 September

2015

£000

Audited

 

NON-CURRENT ASSETS

Goodwill

4,856

4,650

4,838

Intangible assets

722

816

842

Property, plant and equipment

2,959

2,531

2,676

Deferred tax asset

18

22

35

8,555

8,019

8,391

 

CURRENT ASSETS

Trade and other receivables

16,760

13,931

16,554

Cash and cash equivalents

1,085

1,750

1,111

Current tax receivable

78

187

-

17,923

15,868

17,665

TOTAL ASSETS

26,478

23,887

26,056

 

CURRENT LIABILITIES

Borrowings

(780)

(6)

(479)

Trade and other payables

(9,490)

(8,394)

(9,537)

Current tax payable

(127)

(294)

(209)

(10,397)

(8,694)

(10,225)

 

NON-CURRENT LIABILITIES

Borrowings

(7,115)

(3,002)

(3,100)

Deferred tax liabilities

(331)

(194)

(352)

Trade and other payables

-

-

(317)

(7,446)

(3,196)

(3,769)

TOTAL LIABILITIES

(17,843)

(11,890)

(13,994)

NET ASSETS

8,635

11,997

12,062

SHAREHOLDERS' EQUITY

Share capital

125

125

125

Share premium

4,704

4,704

4,704

Merger reserve

1,493

1,493

1,493

Currency reserve

(464)

(367)

(392)

Capital redemption reserve

18

18

18

Retained earnings

2,865

6,131

6,219

Own shares

(107)

(107)

(107)

 

TOTAL SHAREHOLDERS' EQUITY

 

8,634

 

11,997

 

12,060

NON-CONTROLLING INTEREST

1

-

2

TOTAL EQUITY

8,635

11,997

12,062

 

 

Consolidated Cashflow Statement

Interim report for the six months ended 31 March 2016

 

6 months ended

31 March

2016

£000

Unaudited

6 months ended

31 March

2015

£000

Unaudited

Year

ended

30 September

2015

£000

Audited

 

CASH FLOWS FROM OPERATING ACTIVITIES

Loss after taxation

(3,384)

(1,988)

(1,959)

 

Adjustments for:

Depreciation

230

155

357

Amortisation

121

90

240

Exchange adjustments

67

(5)

(5)

Finance income

(7)

(5)

(9)

Finance expense

103

41

104

Tax (credit)/expense

(63)

(80)

96

Equity settled share-based payment cost

730

264

510

OPERATING CASH FLOW BEFORE CHANGES IN WORKING

CAPITAL AND PROVISIONS

 

(2,203)

 

(1,528)

 

(666)

Increase in trade and other receivables

(225)

(346)

(2,968)

(Decrease)/increase in trade and other payables

(760)

1,241

2,865

 

CASH USED BY OPERATIONS

 

(3,188)

 

(633)

 

(769)

Tax paid

(109)

(363)

(491)

 

NET CASH OUTFLOW

FROM OPERATING ACTIVITIES

 

 

(3,297)

 

 

(996)

 

 

(1,260)

 

CASH FLOWS FROM INVESTING ACTIVITIES

Interest received

7

5

9

Acquisition of property, plant and equipment

(501)

(192)

(532)

Acquisition of intangible assets

-

-

(41)

Acquisition of subsidiary net of cash acquired

-

(344)

(344)

Proceeds from the disposal of property, plant and equipment

-

80

80

NET CASH OUTFLOW FROM INVESTING ACTIVITIES

(494)

(451)

(828)

 

CASH FLOWS FROM FINANCING ACTIVITIES

Interest paid

(103)

(41)

(104)

Repayment of borrowings

(41)

(4)

(33)

Proceeds of borrowings

4,089

1,743

1,926

Repurchase of share options

(381)

-

-

Proceeds from sale of shares

-

401

401

Dividends paid to equity shareholders of the parent

-

-

(505)

Payment of dividends to non controlling interests

-

(10)

(10)

NET CASH INFLOW

FROM FINANCING ACTIVITIES

 

3,564

 

2,089

 

1,675

Net increase / (decrease) in cash and cash equivalents

(227)

642

(413)

Effect of foreign exchange on cash and cash equivalents

(67)

6

5

Cash and cash equivalents at start of period

694

1,102

1,102

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

400

 

1,750

 

694

 

 

 

 

 

Consolidated Statement of Changes in Equity  

Interim report for the six months ended 31 March 2016

 

For the six months ended 31 March 2016 (Unaudited):

 

 

Share

capital

£000

 

Share

premium

£000

 

Merger

reserve

£000

 

Other reserves(1)

£000

 

Retained earnings

£000

 

Own shares

£000

 

 

Total*

£000

Non-controlling interest

£000

 

Total

Equity

£000

Opening balance

At 1 October 2015

 

125

 

4,704

 

1,493

 

(374)

 

6,219

 

(107)

 

12,060

 

2

 

12,062

Loss for the period

-

-

-

-

(3,383)

-

(3,383)

(1)

(3,384)

Other comprehensive income for the period

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(72)

 

 

 

-

 

 

 

-

 

 

 

(72)

 

 

 

-

 

 

 

(72)

Total comprehensive income for the period

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(72)

 

 

 

(3,383)

 

 

 

-

 

 

 

(3,455)

 

 

 

(1)

 

 

 

(3,456)

Dividends

-

-

-

-

(320)

-

(320)

-

(320)

Share-based payment

 

-

 

-

 

-

 

-

 

730

 

-

 

730

 

-

 

730

Repurchase of share options

 

-

 

-

 

-

 

-

 

(381)

 

-

 

(381)

 

-

 

(381)

CLOSING BALANCE

AT 31 MARCH 2016

 

 

 

125

 

 

 

4,704

 

 

 

1,493

 

 

 

(446)

 

 

 

2,865

 

 

 

(107)

 

 

 

8,634

 

 

 

1

 

 

 

8,635

For the six months ended 31 March 2015 (Unaudited):

 

 

Share

capital

£000

 

Share

premium

£000

 

Merger

reserve

£000

 

Other reserves(1)

£000

 

Retained earnings

£000

 

Own shares

£000

 

 

Total*

£000

Non-controlling interest

£000

 

Total

Equity

£000

Opening balance

At 1 October 2014

 

111

 

2,702

 

1,493

 

(295)

 

8,173

 

(107)

 

12,077

 

12

 

12,089

Loss for the period

-

-

-

-

(1,986)

-

(1,986)

(2)

(1,988)

Other comprehensive income for the period

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(54)

 

 

 

-

 

 

 

-

 

 

 

(54)

 

 

 

-

 

 

 

(54)

Total comprehensive income for the period

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(54)

 

 

 

(1,986)

 

 

 

-

 

 

 

(2,040)

 

 

 

(2)

 

 

 

(2,042)

Dividends

-

-

-

-

(320)

-

(320)

(10)

(330)

Share-based payment

 

-

 

-

 

-

 

-

 

264

 

-

 

264

 

-

 

264

Issue of share capital

 

8

 

393

 

-

 

-

 

-

 

-

 

401

 

-

 

401

Shares issued as part of the consideration in a business combination

 

 

 

 

6

 

 

 

 

1,609

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

1,615

 

 

 

 

-

 

 

 

 

1,615

CLOSING BALANCE

AT 31 MARCH 2015

 

 

 

125

 

 

 

4,704

 

 

 

1,493

 

 

 

(349)

 

 

 

6,131

 

 

 

(107)

 

 

 

11,997

 

 

 

-

 

 

 

11,997

 

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity (continued)

Interim report for the six months ended 31 March 2016

 

For the year ended 30 September 2015 (Audited):

 

 

Share

capital

£000

 

Share

premium

£000

 

Merger

reserve

£000

 

Other reserves(1)

£000

 

Retained earnings

£000

 

Own shares

£000

 

 

Total*

£000

Non-controlling interest

£000

 

Total

Equity

£000

Opening balance

At 1 October 2014

 

111

 

2,702

 

1,493

 

(295)

 

8,173

 

(107)

 

12,077

 

12

 

12,089

Loss for the year

-

-

-

-

(1,959)

-

(1,959)

-

(1,959)

Other comprehensive income for the year

 

-

 

-

 

-

 

(79)

 

-

 

-

 

(79)

 

-

 

(79)

Total comprehensive income for the year

 

 

-

 

 

-

 

 

-

 

 

(79)

 

 

(1,959)

 

 

-

 

 

(2,038)

 

 

-

 

 

(2,038)

Dividends

-

-

-

-

(505)

-

(505)

(10)

(515)

Share-based payment

-

-

-

-

510

-

510

-

510

Issue of share capital

8

393

-

-

-

-

401

-

401

Shares issued as part of the consideration in a business combination

 

 

6

 

 

1,609

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,615

 

 

-

 

 

1,615

CLOSING BALANCE AT 30 SEPTEMBER 2015

 

 

125

 

 

4,704

 

 

1,493

 

 

(374)

 

 

6,219

 

 

(107)

 

 

12,060

 

 

2

 

 

12,062

 

 

\* Total equity attributable to the equity shareholders of the parent

(1) 'Other reserves' combines the translation reserve, capital redemption reserve and other reserves

 

 

NOTES

 

1 BASIS OF PREPARATION

 

The consolidated interim financial information has been prepared in accordance with the accounting policies that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2016 which are not expected to be significantly different to those set out in note 1 of the Group's audited financial statements for the year ended 30 September 2015. The financial information in this interim report is in compliance with the recognition and measurement principles of IFRS as adopted by the European Union (EU) but does not include all disclosures that would be required under IFRSs. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information. The financial information for the half years ended 31 March 2016 and 31 March 2015 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and is unaudited but has been reviewed by our auditors.

 

The comparative financial information for the year ended 30 September 2015 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2015 have been filed with the Registrar of Companies. The Independent Auditor's Report on that Annual Report and Financial Statements for 2015 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

 

After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the interim consolidated financial statements.

 

2 TAXATION

 

The tax credit on the loss for the half-year ended 31 March 2016 is based on the estimated tax rates in the jurisdictions in which the Group operates, for the year ending 30 September 2016.

 

3 DIVIDEND

 

In view of the trading loss, the directors do not propose an interim dividend for the half-year ended 31 March 2016 (2015: 0.6 pence per share).

 

4 SUMMARY SEGMENTAL ANALYSIS

 

REPORTABLE SEGMENTS

For management purposes, the Group is organised into three operating divisions: EuAm (Europe & Americas), AMEA (APAC, Middle East & Africa) and Initiate. These divisions are the basis on which the Group is structured and managed, based on its geographic structure. In EuAm and AMEA the key service provisions are: quantity surveying, planning / programming, quantum and planning experts, dispute avoidance / resolution, litigation support, contract administration and commercial advice / management. In Initiate the key service provisions are capital investment consultancy providing development, project and contracting management services to the infrastructure market in the UK.

 

Segment information about these reportable segments is presented below.

 

Six months ended 31 March 2016

 

 

Europe & Americas

£000

 

APAC, Middle East & Africa

£000

 

 

 

Initiate

£000

 

 

 

Eliminations

£000

 

 

 

Unallocated

£000

 

 

 

Consolidated

£000

Total external revenue

10,886

13,853

3,162

-

-

27,901

Total inter-segment revenue(2)

 

198

 

77

 

-

 

(275)

 

-

 

-

Total revenue

11,084

13,930

3,162

(275)

-

27,901

 

Segmental profit/(loss)

 

90

 

(755)

 

(110)

 

-

 

-

 

(775)

Unallocated corporate

expenses(1)

 

-

 

-

 

-

 

-

 

(638)

 

(638)

Share-based payment cost

 

-

 

-

 

-

 

-

 

(730)

 

(730)

Exceptional items

(note 6)

 

(70)

 

-

 

(428)

 

-

 

(589)

 

(1,087)

Amortisation of intangible assets

 

-

 

(23)

 

(98)

 

-

 

-

 

(121)

Operating

profit/(loss)

 

20

 

(778)

 

(636)

 

-

 

(1,957)

 

(3,351)

Finance income

-

-

-

-

7

7

Finance expense

-

-

-

-

(103)

(103)

Profit/(loss) before tax

20

(778)

(636)

-

(2,053)

(3,447)

Taxation

-

-

-

-

63

63

Profit/(loss) for the period

 

20

 

(778)

 

(636)

 

-

 

(1,990)

 

(3,384)

 

(1) Unallocated costs represent Directors' remuneration, administrative staff, corporate head office costs and expenses associated with AIM.

 

(2) Inter-segment revenue is charged at prevailing market rates.

 

 

Six months ended 31 March 2015

 

 

Europe & Americas

£000

 

APAC, Middle East & Africa

£000

 

 

 

Initiate

£000

 

 

 

Eliminations

£000

 

 

 

Unallocated

£000

 

 

 

Consolidated

£000

Total external revenue

10,912

7,980

2,220

-

-

21,112

Total inter-segment revenue(2)

 

333

 

88

 

-

 

(421)

 

-

 

-

Total revenue

11,245

8,068

2,220

(421)

-

21,112

Segmental profit/(loss)

941

(506)

193

-

-

628

Unallocated corporate

expenses(1)

 

-

 

-

 

-

 

-

 

(1,085)

 

(1,085)

Share-based payment cost

-

-

-

-

(264)

(264)

Exceptional items (note 6)

(57)

(441)

(723)

-

-

(1,221)

Amortisation of intangible assets

 

-

 

(37)

 

(53)

 

-

 

-

 

(90)

Operating profit/(loss)

884

(984)

(583)

-

(1,349)

(2,032)

Finance income

-

-

-

-

5

5

Finance expense

-

-

-

-

(41)

(41)

Profit/(loss) before tax

884

(984)

(583)

-

(1,385)

(2,068)

Taxation

-

-

-

-

80

80

Profit/(loss) for the period

884

(984)

(583)

-

(1,305)

(1,988)

 

 

Year ended 30 September 2015

 

 

Europe & Americas

£000

 

APAC, Middle East & Africa

£000

 

 

 

Initiate

£000

 

 

 

Eliminations

£000

 

 

 

Unallocated

£000

 

 

 

Consolidated

£000

Total external revenue

22,243

20,333

5,374

-

-

47,950

Total inter-segment revenue(2)

 

508

 

200

 

-

 

(708)

 

-

 

-

Total revenue

22,751

20,533

5,374

(708)

-

47,950

Segmental profit/(loss)

2,087

781

399

-

-

3,267

Unallocated corporate

expenses(1)

-

-

-

-

(2,112)

(2,112)

Share-based payment cost

-

-

-

-

(510)

(510)

Exceptional items (note 6)

(81)

(460)

(1,617)

-

(15)

(2,173)

Amortisation of intangible assets

 

-

 

(77)

 

(163)

 

-

 

-

 

(240)

Operating profit/(loss)

2,006

244

(1,381)

-

(2,637)

(1,768)

Finance income

-

-

-

-

9

9

Finance expense

-

-

-

-

(104)

(104)

Profit/(loss) before tax

2,006

244

(1,381)

-

(2,732)

(1,863)

Taxation

-

-

-

-

(96)

(96)

Profit/(loss) for the period

2,006

244

(1,381)

-

(2,828)

(1,959)

 

(1) Unallocated costs represent Directors' remuneration, administrative staff, corporate head office costs and expenses associated with AIM.

 

(2) Inter-segment revenue is charged at prevailing market rates.

 

5 EARNINGS PER SHARE 

 

6 months

ended

31 March

2016

£000

6 months

ended

31 March

2015

£000

Year

ended

30 September

2015

£000

Loss for the financial period attributable to equity shareholders

 

(3,383)

 

(1,986)

 

(1,959)

Share-based payments cost and associated costs

730

264

510

Exceptional items (note 6)

1,086

1,221

2,173

Amortisation of intangible assets

121

90

240

Adjusted (loss) / profit for the financial period before share-based payments costs, amortisation of intangible assets and exceptional items

 

 

(1,446)

 

 

(411)

 

 

964

Weighted average number of shares:

- Ordinary shares in issue

31,101,190

29,701,848

30,401,519

- Shares held by EBT

(596,677)

(596,677)

(596,677)

- Vested options with minimal consideration

409,602

272,997

272,997

Basic and diluted weighted average number of shares

30,914,115

29,378,168

30,077,839

Basic and diluted loss per share

(10.9)p

(6.8)p

(6.5)p

Adjusted (loss) / profit per share before share-based payment cost, amortisation of intangible assets and exceptional items

 

(4.7)p

 

(1.4)p

 

3.2p

 

6 EXCEPTIONAL ITEMS

 

Exceptional items are operating costs that are not expected to be incurred every year and due to their nature and amount are disclosed separately.

 

6 months

ended

31 March

2016

£000

6 months

ended

31 March

2015

£000

Year

ended

30 September

2015

£000

Severance costs(1)

 

652

497

526

Acquisition and integration costs(2)

 

434

724

1,647

1,086

1,221

2,173

 

(1) Severance costs include redundancy, payment in lieu of notice, ex-gratia, other discretionary payments and associated legal costs.

(2) Acquisition costs include legal and professional fees, office and restructuring costs and post combination employment costs relating to the Initiate acquisition in December 2014.

 

 

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