Last checked at 5 Nov 2014 09:30
4imprint Group plc 5 November 2014
Change in presentational currency
Comparatives presented in USD
4imprint Group plc (the "Group"), the leading international direct marketer of promotional products, announced on 24 October 2014 that it is changing the currency in which it presents its consolidated financial statements from Sterling to US dollars. A substantial portion of the Group's revenue and earnings are now denominated in US dollars and the Board has decided that a US dollar presentation will give a more meaningful view of the Group's financial performance and position.
In future, dividends will be determined in US dollars and paid in Sterling at the exchange rate at the time the dividend is determined.
In the unaudited appendix attached to this announcement the Group has presented condensed consolidated US dollar financial information. This will form the basis of the comparative US dollar financial statements to be included in the full year results for the year ending 27 December 2014 and the half year results for the six month period ending 27 June 2015.
The condensed consolidated financial information has been restated from Sterling into US dollars using the procedures as outlined below and in accordance with the requirements set out in IAS 21: "The Effects of Changes in Foreign Exchange Rates" with respect to translation to the presentational currency:
· Items of income and expenditure, other than single material identifiable transactions, denominated in non US dollar currencies were translated into US dollars at the average exchange rate of the reporting period. Single material identifiable transactions, e.g. the sale of the SPS business, have been translated at the exchange rate at the time of the transaction;
· assets and liabilities denominated in non US dollar currencies were translated into US dollars at the closing rate prevailing at the balance sheet dates;
· share capital, share premium and the capital redemption reserve have been translated at historical exchange rates; and
· all resulting exchange differences have been recognised in other comprehensive income and in the currency translation reserve in accordance with the Group's existing accounting policy.
The relevant exchange rates used were as follows:
Six months ended 28 June 2014 | Year ended 28 Dec 2013 | |
£/US$ - average | 1.6693 | 1.5641 |
£/US$ - period end | 1.7016 | 1.6494 |
For further information, please contact:
4imprint Group plc Tel. + 44 (0) 20 7299 7201
| MHP Communications Tel. + 44 (0) 20 3128 8100 | |
John Poulter Executive Chairman
Gillian Davies Group Finance Director | Reg Hoare
Katie Hunt
| |
Condensed consolidated income statement (unaudited)
Half year 2014 $'000 | Full year 2013 $'000 | ||
Continuing operations | |||
Revenue | 193,058 | 332,936 | |
Operating expenses | (185,262) | (317,080) | |
Operating profit before exceptional items | 8,816 | 16,253 | |
Exceptional items | (1,020) | (397) | |
Operating profit | 7,796 | 15,856 | |
Finance income | 83 | 88 | |
Finance costs | - | (27) | |
Net pension finance charge | (591) | (1,445) | |
Net finance cost | (508) | (1,384) | |
Profit before tax | 7,288 | 14,472 | |
Taxation | (2,113) | (3,857) | |
Profit for the period from continuing operations | 5,175 | 10,615 | |
Discontinued operations | |||
Loss from discontinued operations | (1,279) | (4,825) | |
Profit for the period | 3,896 | 5,790 | |
Earnings per share | |||
Basic | |||
From continuing operations | 19.28c | 40.11c | |
From continuing and discontinued operations | 14.51c | 21.88c | |
Diluted | |||
From continuing operations | 18.40c | 38.13c | |
From continuing and discontinued operations | 13.85c | 20.80c | |
Underlying | |||
From continuing operations | 26.69c | 55.55c |
Condensed consolidated statement of comprehensive income (unaudited)
Half year 2014 $'000 | Full year 2013 $'000 | ||
Profit for the period | 3,896 | 5,790 | |
Other comprehensive (expense)/income | |||
Items that may be reclassified subsequently to the income statement: | |||
Exchange differences on translation of foreign subsidiaries | 190 | 377 | |
Exchange differences recycled to income statement on disposal of business | 1,347 | - | |
Items that will not be reclassified subsequently to the income statement: | |||
Remeasurement (losses)/gains on post employment obligations | (5,176) | 7,173 | |
Tax relating to components of other comprehensive income | 1,113 | (3,502) | |
Effect of change in UK tax rate | (52) | (755) | |
Other comprehensive (expense)/income net of tax | (2,578) | 3,293 | |
Total comprehensive income for the period | 1,318 | 9,083 | |
| |||
Half year 2014 $'000 | Full year 2013 $'000 | ||
Total comprehensive income attributable to equity Shareholders arising from - Continuing operations - Discontinued operations |
1,250 68 |
13,908 (4,825) | |
1,318 | 9,083 |
Condensed consolidated balance sheet (unaudited)
At 28 June 2014 $'000 | At 28 Dec 2013 $'000 | |||
Non current assets | ||||
Property, plant and equipment | 9,046 | 8,803 | ||
Intangible assets | 1,402 | 1,349 | ||
Deferred tax assets | 7,257 | 6,324 | ||
17,705 | 16,476 | |||
Current assets | ||||
Assets held for sale | - | 13,824 | ||
Inventories | 3,373 | 3,686 | ||
Trade and other receivables | 31,660 | 30,105 | ||
Other financial assets - bank deposits | 14,634 | 8,165 | ||
Cash and cash equivalents | 29,832 | 17,825 | ||
79,499 | 73,605 | |||
Current liabilities | ||||
Trade and other payables | (38,677) | (29,684) | ||
Current tax | (1,656) | (247) | ||
Liabilities held for sale | - | (4,364) | ||
| (40,333) | (34,295) | ||
Net current assets | 39,166 | 39,310 | ||
Non current liabilities | ||||
Retirement benefit obligations | (31,879) | (27,398) | ||
Deferred tax liability | (381) | (477) | ||
Provisions for other liabilities and charges | (248) | (242) | ||
(32,508) | (28,117) | |||
Net assets | 24,363 | 27,669 | ||
Shareholders' equity | ||||
Share capital | 18,777 | 17,988 | ||
Share premium reserve | 68,451 | 68,451 | ||
Capital redemption reserve | 369 | 369 | ||
Currency translation reserve | 6,997 | 5,460 | ||
Retained earnings | (70,231) | (64,599) | ||
Total Shareholders' equity | 24,363 | 27,669 |
Condensed consolidated cash flow statement (unaudited)
Half year 2014 $'000 | Full year 2013 $'000 | ||
Cash flows from operating activities | |||
Cash generated from operations | 14,163 | 17,913 | |
Net tax paid | (177) | (2,714) | |
Finance income | 72 | 108 | |
Finance costs | - | (22) | |
Net cash generated from operating activities | 14,058 | 15,285 | |
Cash flows from investing activities | |||
Purchases of property, plant and equipment | (843) | (1,542) | |
Purchases of intangible assets | (235) | (486) | |
Net proceeds from sale of business | 9,721 | 1,484 | |
Net cash generated from/(used in) investing activities | 8,643 | (544) | |
Cash flows from financing activities | |||
Repayment of borrowings | - | (10,064) | |
Capital element of finance lease payments | - | (236) | |
Amounts placed on deposit | (6,093) | (3,050) | |
Proceeds from issue of ordinary shares | 789 | 322 | |
Purchase of own shares | (789) | (200) | |
Dividends paid to Shareholders | (5,118) | (6,558) | |
Net cash used in financing activities | (11,211) | (19,786) | |
Net movement in cash and cash equivalents | 11,490 | (5,045) | |
Cash and cash equivalents at beginning of the period | 17,825 | 22,780 | |
Exchange gains on cash and cash equivalents | 517 | 90 | |
Cash and cash equivalents at end of the period | 29,832 | 17,825 | |
Analysis of cash and cash equivalents | |||
Cash at bank and in hand | 24,047 | 10,815 | |
Short term deposits | 5,785 | 7,010 | |
29,832 | 17,825 |
Segmental information
Revenue - continuing operations | ||
Half year 2014 $'000 | Full year 2013 $'000 | |
North America | 185,094 | 320,035 |
UK and Ireland | 7,964 | 12,901 |
Total | 193,058 | 332,936 |
Profit - continuing operations |
Underlying* | Total | ||
Half year 2014 $'000 | Full year 2013 $'000 | Half year 2014 $'000 | Full year 2013 $'000 | |
4imprint Direct Marketing | 11,533 | 22,839 | 11,533 | 22,839 |
Head office | (1,844) | (3,345) | (1,844) | (3,345) |
Underlying operating profit | 9,689 | 19,494 | 9,689 | 19,494 |
Exceptional items - Head office | (1,020) | (397) | ||
Share option related charges | (526) | (2,493) | ||
Defined benefit pension scheme administrative expenses | (347) | (748) | ||
Operating profit | 9,689 | 19,494 | 7,796 | 15,856 |
Net finance income | 83 | 61 | 83 | 61 |
Defined benefit pension finance charge | (591) | (1,445) | ||
Profit before tax | 9,772 | 19,555 | 7,288 | 14,472 |
* Underlying is before share option related charges, defined benefit pension charges and exceptional items.
Earnings per share
Basic, diluted and underlying
The basic, diluted and underlying earnings per share are calculated based on the following data:
Half year 2014 $'000 | Full year 2013 $'000 | |
Profit after tax - continuing operations | 5,175 | 10,615 |
Loss after tax - discontinued operations | (1,279) † | (4,825) |
Profit for the period | 3,896 | 5,790 |
Underlying profit after tax - continuing operations | 7,165 | 14,700 |
† Includes cumulative exchange losses of $1,347,000 recycled to the income statement on disposal.
Half year 2014 Number '000 | Full year 2013 Number '000 | |
Basic weighted average number of shares | 26,847 | 26,463 |
Dilutive potential ordinary shares - employee share options | 1,276 | 1,372 |
Diluted weighted average number of shares | 28,123 | 27,835 |
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|
|
Half year 2014 cents | Full year 2013 cents | |
Basic earnings per share from continuing operations | 19.28 | 40.11 |
Basic loss per share from discontinued operations | (4.77) | (18.23) |
Basic earnings per share | 14.51 | 21.88 |
Diluted earnings per share from continuing operations | 18.40 | 38.13 |
Diluted loss per share from discontinued operations | (4.55) | (17.33) |
Diluted earnings per share | 13.85 | 20.80 |
Underlying basic earnings per share from continuing operations | 26.69 | 55.55 |
Underlying diluted basic earnings per share from continuing operations | 25.48 | 52.81 |
Cash generated from operations
Half year 2014 $'000 | Full year 2013 $'000 | |
Operating profit - continuing operations | 7,796 | 15,856 |
- discontinued operations | (98) | 1,439 |
Adjustments for: | ||
Depreciation charge | 678 | 2,133 |
Amortisation of intangibles | 280 | 626 |
Exceptional non cash items | 706 | 119 |
Decrease in exceptional accrual/provisions | (40) | (25) |
Share option charges - continuing | 494 | 1,226 |
- discontinued | - | 17 |
Defined benefit pension administration charge | 347 | 748 |
Contributions to defined benefit pension scheme - normal - flexible early retirement offer | (2,853) (422) | (4,966) - |
Changes in working capital: | ||
Increase in inventories | (130) | (1,268) |
Decrease/(increase) in trade and other receivables | 142 | (5,362) |
Increase in trade and other payables | 7,263 | 7,370 |
Cash generated from operations | 14,163 | 17,913 |