20 Dec 2019 07:00
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Date: 19 December 2019
On behalf of: Jaywing plc ("Jaywing", "the Company" or "the Group")
Embargoed: 0700 hrs on 20 December 2019
Jaywing plc
Interim Results 2019/2020
&
Directorate Change
Jaywing plc (AIM: JWNG) today announces its interim results for the six months ended30 September 2019 ("H1").
Financial highlights from continuing operations
6 months to 30 September 2019 £'000 | 6 months to 30 September 2018 £'000 | |
Gross profit* | 11,996 | 14,979 |
Adjusted EBITDA** | (551) | 1,327 |
Adjusted EBITDA margin*** | (4.6%) | 8.9% |
Loss after tax | (1,215) | (634) |
Reported EPS | (1.38p) | (0.70p) |
Net debt | 5,748 | 7,132 |
* Revenue less direct costs of sale
** Before amortisation, share based charges, exceptional items, acquisition related costs and adjustment for the impact of IFRS 16
*** As a percentage of gross profit
Commenting on the results, Martin Boddy, Chairman of Jaywing plc, said:
"As we have outlined in previous announcements, trading in the UK in the first quarter of the year was very weak with a modest improvement in the second quarter. With the political and economic uncertainty in the period, many clients have been focused on their short term marketing spend and where this spend is discretionary, it has been running at a level well below that seen in previous years. However, trading in our Australia operation continued to show profitable growth with EBITDA increasing by 40%.
Overall, like for like Gross Profit for the half year fell by 20% to £12m but the impact on EBITDA was mitigated through cost management and efficiencies resulting in a like for like EBITDA loss of £551k. Despite this, we have generated a small positive cashflow from operations. Net debt reduced year on year following the sale of HSM Limited in January 2019 and loan repayments.
On 2 October 2019, following the half year period, we announced that entities associated with two of our major shareholders had acquired the Company's existing secured loan facility of £5.2 million owed to Barclays Bank plc. The major shareholders immediately provided the Company with additional secured facilities by increasing the Jaywing Facility by £3.0 million to £8.2 million, which enabled the Company to repay its outstanding overdraft and provided it with additional working capital.
By successfully tackling the Group's funding challenge Jaywing is now in a financially stronger position.
During September we developed a plan with the objective of returning our UK operations to profitability and cash generation in the short term, which assumed no improvement in trading conditions. Taking expert input we concluded that we needed to take a different approach and the plan sets out how we will reshape and re-engineer the organisation to address the changes that we are seeing in the way clients engage with agencies and the new demands that they are making of them. Since September management has been focused on executing the plan and I am pleased to say that we are making good progress. We have improved the management of our working capital, materially realigned our cost base and adopted a new and contemporary agency model that drives revenue and creates efficiencies in delivering even higher quality and effective work for clients. All of this is now being reflected in a stronger financial run rate.
The composition of the Board has also been reviewed and by mutual agreement. Adrian Lingard, Chief Operating Officer, is stepping down from the Board with immediate effect. On behalf of the Board I would like to thank him for his contribution over the past four years.
Beyond the short term, the Board is considering a range of strategic options to return the Company to highly accretive revenue growth. With its performance marketing proposition and pedigree in data science, Jaywing has some highly attractive capabilities that differentiate it from its competition and position it in areas of marketing spend that are set to grow."
Enquiries:
Jaywing plc | |
Michael Sprot (CFO / Company Secretary) | Tel: 0114 281 1200 |
Cenkos Securities plc | |
Nicholas Wells/Callum Davidson | Tel: 020 7397 8900 |
Consolidated interim statement of comprehensive income (unaudited)
Unaudited Six months ended 30 Sept 2019 |
Unaudited Six months ended 30 Sept 2018 |
Audited year ended 31 March 2019 | ||
Note | £'000 | £'000 | £'000 | |
Revenue | 5 | 13,815 | 18,731 | 35,554 |
Direct costs | (1,819) | (3,752) | (5,709) | |
Gross profit | 11,996 | 14,979 | 29,845 | |
Other operating income | 20 | - | 13 | |
Amortisation | (777) | (886) | (1,795) | |
Operating expenses | (12,619) | (14,503) | (28,872) | |
Operating loss | (1,380) | (410) | (809) | |
Finance income | 1 | 2 | 4 | |
Finance costs | (157) | (159) | (305) | |
Net financing costs | (156) | (157) | (301) | |
Loss before tax from continuing operations | (1,536) | (567) | (1,110) | |
Tax credit | 6 | 321 | 109 | 175 |
Loss after tax from continuing operations | (1,215) | (458) | (935) | |
Loss from discontinued operations | - | (176) | (1,610) | |
Loss for the period | (1,215) | (634) | (2,545) | |
Loss for the period is attributable to: | ||||
Non-controlling interests | 74 | 24 | 140 | |
Owners of the parent | (1,289) | (658) | (2,685) | |
(1,215) | (634) | (2,545) | ||
Other comprehensive income | ||||
Items that will be reclassified subsequently to profit or loss | ||||
Exchange differences on retranslation of foreign operations | (13) | (5) | 20 | |
Total comprehensive loss for the period | (1,228) | (639) | (2,525) | |
Total comprehensive income is attributable to: |
| |||
Non-controlling interests | 74 | 24 | 140 | |
Owners of the parent | (1,302) | (663) | (2,665) | |
(1,228) | (639) | (2,525) | ||
Loss per share | 7 | |||
Basic loss per share from continuing operations | (1.38p) | (0.52p) | (1.15p) | |
Basic loss per share from discontinued operations | - | (0.18p) | (1.72p) | |
Total | (1.38p) | (0.70p) | (2.87p) | |
Diluted loss per share from continuing operations | (1.38p) | (0.52p) | (1.15p) | |
Diluted loss per share from discontinued operations | - | (0.18p) | (1.72p) | |
Total | (1.38p) | (0.70p) | (2.87p) |
Consolidated interim balance sheet (unaudited)
Unaudited 30 Sept 2019 |
Unaudited 30 Sept 2018 |
Audited 31 March 2019 | ||
Note | £'000 | £'000 | £'000 | |
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 3,330 | 1,342 | 1,015 | |
Goodwill | 33,054 | 34,674 | 33,054 | |
Other intangible assets | 3,650 | 5,106 | 4,364 | |
40,034 | 41,122 | 38,433 | ||
Current assets | ||||
Trade and other receivables | 6,522 | 13,071 | 8,256 | |
Tax receivable | 285 | - | - | |
Cash and cash equivalents | 1 | 2 | 690 | |
6,808 | 13,073 | 8,946 | ||
Total assets | 46,842 | 54,195 | 47,379 | |
Liabilities | ||||
Current liabilities | ||||
Bank overdraft | 8 | (549) | (884) | - |
Other interest bearing loans and borrowings | 8 | (1,800) | (1,500) | (1,800) |
Trade and other payables | (8,832) | (12,412) | (9,546) | |
Tax payable | - | (397) | (205) | |
Provisions | (42) | (151) | (42) | |
(11,223) | (15,344) | (11,593) | ||
Non-current liabilities | ||||
Other interest bearing loans and borrowings | 8 | (3,400) | (4,750) | (3,850) |
Lease liability | (1,770) | - | - | |
Deferred tax liabilities | (552) | (809) | (656) | |
(5,722) | (5,559) | (4,506) | ||
Total liabilities | (16,945) | (20,903) | (16,099) | |
Net assets | 29,897 | 33,292 | 31,280 | |
Equity | ||||
Capital and reserves attributable to equity holders of the company | ||||
Share capital | 34,992 | 34,992 | 34,992 | |
Share premium account | 10,088 | 10,088 | 10,088 | |
Capital redemption reserve | 125 | 125 | 125 | |
Shares purchased for treasury | (25) | (25) | (25) | |
Share option reserve | 683 | 826 | 838 | |
Foreign currency translation reserve | (13) | (25) | - | |
Retained earnings | (17,178) | (14,431) | (15,889) | |
Equity attributable to owners of the parent | 28,672 | 31,550 | 30,129 | |
Non-controlling interest | 1,225 | 1,742 | 1,151 | |
Total equity | 29,897 | 33,292 | 31,280 |
Consolidated interim cash flow statement (unaudited)
Unaudited Six months ended 30 Sept 2019 | Unaudited Six months ended 30 Sept 2018 |
Audited year ended 31 March 2019 | ||
Note | £'000 | £'000 | £'000 | |
Cash flow from operating activities | ||||
Loss for the period | (1,215) | (634) | (2,545) | |
Adjustment for: | ||||
Depreciation, amortisation and impairment | 1,297 | 1,234 | 3,440 | |
Loss on sale of HSM Limited | - | - | 1,370 | |
Foreign exchange | (15) | (5) | - | |
Finance income | (1) | (2) | (4) | |
Finance costs | 157 | 159 | 305 | |
Share based payment charge | (155) | 152 | 177 | |
Taxation | (321) | (109) | (175) | |
Operating cash flow before changes in working capital | (253) | 795 | 2,568 | |
Decrease / (increase) in trade and other receivables | 1,736 | (1,124) | 1,599 | |
(Decrease) / increase in trade and other payables | (1,475) | 216 | (1,745) | |
Cash (used in)/generated from operations | 8 | (113) | 2,422 | |
Interest received | 1 | 2 | 4 | |
Interest paid | (103) | (154) | (305) | |
Tax paid | (273) | - | (287) | |
Net cash flow from operating activities | (367) | (265) | 1,834 | |
Cash flows from investing activities | ||||
Payment of deferred consideration | (325) | (672) | (592) | |
Proceeds from sale of HSM Limited | - | - | 403 | |
Acquisition of intangible assets | (63) | (94) | (297) | |
Acquisition of property, plant and equipment | (33) | (183) | (252) | |
Net cash outflow from investing activities | (421) | (949) | (738) | |
Cash flows from financing activities | ||||
Repayment of borrowings | (450) | (300) | (900) | |
Acquisition of non-controlling interest | - | - | (138) | |
Net cash outflow from financing activities | (450) | (300) | (1,038) | |
Net (decrease) / increase in cash, cash equivalents and bank overdrafts | (1,238) | (1,514) | 58 | |
Cash and cash equivalents at beginning of period | 690 | 632 | 632 | |
Cash and cash equivalents at end of period | (548) | (882) | 690 | |
Cash and cash equivalents comprise: | ||||
Cash at bank and in hand | 1 | 2 | 690 | |
Bank overdrafts | 7 | (549) | (884) | - |
Cash and cash equivalents at end of period | (548) | (882) | 690 | |
Consolidated interim statement of changes in equity (unaudited)
Share capital | Share premium account | Capital redemption reserve | Treasury Shares | Share option reserve | Foreign currency translation reserve | Retained earnings | Equity attributable to parent | Non-controlling interest | Total equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Balance at 31 March 2018 | 34,992 | 10,088 | 125 | (25) | 736 | (20) | (13,773) | 32,123 | 1,718 | 33,841 |
Charge in respect of share-based payments |
- |
- |
- |
- |
90 |
- |
- | 90 |
- |
90 |
Transactions with owners | - | - | - | - | 90 | - | - | 90 | - | 90 |
Profit/(loss) for the period | - | - | - | - | - | - | (658) | (658) | 24 | (634) |
Retranslation of foreign currency | - | - | - | - | - | (5) | - | (5) | - | (5) |
Total comprehensive income for the period | - | - | - | - | - | (5) | (658) | (663) | 24 | (639) |
Balance at 30 September 2018 | 34,992 | 10,088 | 125 | (25) | 826 | (25) | (14,431) | 31,550 | 1,742 | 33,292 |
Acquisition of non-controlling interests | - | - | - | - | - | - | 569 | 569 | (707) | (138) |
Charge in respect of share-based payments | - | - | - | - | 12 | - | - | 12 | - | 12 |
Transactions with owners | - | - | - | - | 12 | - | 569 | 581 | (707) | (126) |
Profit/(loss) for the period | - | - | - | - | - | - | (2,027) | (2,027) | 116 | (1,911) |
Retranslation of foreign currency | - | - | - | - | - | 25 | - | 25 | - | 25 |
Total comprehensive income for the period | - | - | - | - | - | 25 | (2,027) | (2,002) | 116 | (1,886) |
Balance at 31 March 2019 (audited) | 34,992 | 10,088 | 125 | (25) | 838 | - | (15,889) | 30,129 | 1,151 | 31,280 |
Charge in respect of share-based payments | - | - | - | - | (155) | - | - | (155) | - | (155) |
Transactions with owners | - | - | - | - | (155) | - | - | (155) | - | (155) |
Profit/(loss) for the period | - | - | - | - | - | - | (1,289) | (1,289) | 74 | (1,215) |
Retranslation of foreign currency | - | - | - | - | - | (13) | - | (13) | - | (13) |
Total comprehensive income for the period | - | - | - | - | - | (13) | (1,289) | (1,302) | 74 | (1,228) |
Balance at 30 September 2019 | 34,992 | 10,088 | 125 | (25) | 683 | (13) | (17,178) | 28,672 | 1,225 | 29,897 |
1. General Information
Jaywing plc (the "Company") is incorporated and domiciled in the United Kingdom. The Company is listed on the AIM market of the London Stock Exchange. The registered address is Albert Works, Sidney Street, Sheffield,S1 4RG.
The interim financial information was approved for issue on 19 December 2019.
2. Basis of preparation
The consolidated interim financial statements for the six months ended 30 September 2019, which are unaudited, have been prepared in accordance with applicable accounting standards and under the historical cost convention except for certain financial instruments that are carried at fair value.
The financial information for the year ended 31 March 2019 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 March 2019 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain statements under Section 498 (2) or Section 498 (3) of the Companies Act 2006.
The consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2019, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.
3. Accounting policies
Except as described below, the principal accounting policies of Jaywing plc and its subsidiaries ("the Group") are consistent with those set out in the Group's 2019 annual report and financial statements.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
The Group has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2019 annual financial statements, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 April 2019 and will be adopted in the 2020 financial statements. The only standard impacting the Group that will be adopted in the annual financial statements for the year ended 31 March 2020, and which have given rise to a change in the Group's accounting policies is:
• IFRS 16 leases
Details of the impact of this standard is given below. Other new and amended standards and interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to have a material impact on the Group.
4. New IFRS implementation
The Company has adopted IFRS 16 - Leases for the financial year ending 31 March 2020, and it has chosen to use the modified retrospective approach to adoption which means there are no restatements to the prior year figures.
IFRS 16 introduces a single lessee accounting model, whereby the Group now recognises a lease liability and a right of use asset at 1 April 2019 for leases previously classified as operating leases. Within the income statement, operating lease charges, which previously were included in administrative expenses, have been replaced by depreciation and interest expenses.
The adoption of IFRS 16 resulted in a right of use asset of £2.8 million, with a corresponding liability of £2.8 million, being recognised as at 1 April 2019 which was depreciated to a value of £2.5 million as at 30 September 2019.
In order to see how the impact of IFRS 16 has affected Adjusted EBITDA*, a reconciliation is presented below:
6 months ended 30 September 2019 £'000 | 6 months ended 30 September 2018 £'000 | |
Adjusted EBITDA* - consistent with 2018 presentation and accounting policy | (551) | 1,327 |
Changes due to new accounting policy - IFRS 16 | 425 | - |
Adjusted EBITDA* - consistent with 2019 presentation and accounting policy | (126) | 1,327 |
* Before amortisation, share based charges, exceptional items and acquisition related costs
The Group has adopted IFRS 16 on a modified retrospective basis. Upon transition, a lease liability has been recognised based on future lease payments discounted at an appropriate borrowing rate. Additionally, a right
of use asset has been recognised along with a related lease liability. Within the income statement, the operating lease charge (£370k) has been replaced by depreciation (£333k) and interest expense (£54k). This has resulted in a decrease in operating expenses and an increase in finance costs.
6 months ended 30 September 2019 £'000 | 6 months ended 30 September 2018 £'000 | |
Non-current assets | ||
Property, plant and equipment - consistent with 2018 presentation and accounting policy | 861 | 1,342 |
Changes due to new accounting policy - IFRS 16 - Right of use asset | 2,469 | - |
Property, plant and equipment - consistent with 2019 presentation and accounting policy | 3,330 | 1,342 |
Current liabilities | ||
Current liabilities - consistent with 2018 presentation and accounting policy | 10,562 | 15,344 |
Changes due to new accounting policy - IFRS 16 - Short term leases | 661 | - |
Current liabilities - consistent with 2019 presentation and accounting policy | 11,223 | 15,344 |
Non-current liabilities | ||
Non-current liabilities - consistent with 2018 presentation and accounting policy | 3,952 | 5,559 |
Changes due to new accounting policy - IFRS 16 - Long term leases | 1,770 | - |
Non-current liabilities - consistent with 2019 presentation and accounting policy | 5,722 | 5,559 |
5. Segment information (unaudited)
Jaywing reports its business activities in three areas: Brand Performance, Online Performance and Data, Analysis & Technology. Central Costs represents the Group's head office function, along with intragroup transactions. The 2018 results have been restated into the new segments.
Six months ended 30 September 2019 | |||||
Brand Performance | Online Performance | Data Analysis & Technology | Central Costs | Total Group | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
Revenue | 4,822 | 7,509 | 3,390 | (1,906) | 13,815 |
Direct costs | (1,282) | (2,010) | (433) | 1,906 | (1,819) |
Gross profit | 3,540 | 5,499 | 2,957 | - | 11,996 |
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | (3,702) | (4,488) | (2,809) | (1,123) | (12,122) |
Operating profit / (loss) before depreciation, amortisation, exceptional items, acquisition related costs and credit for share based payments | (162) | 1,011 | 148 | (1,123) | (126) |
Other Operating Income | 20 | - | - | - | 20 |
Depreciation | (88) | (298) | (13) | (121) | (520) |
Amortisation | (359) | (369) | (49) | - | (777) |
Exceptional costs | (46) | (146) | (10) | (267) | (469) |
Acquisition related costs | - | - | - | (293) | (293) |
Charge for share based payments | - | - | - | 785 | 785 |
Operating profit / (loss) | (635) | 198 | 76 | (1,019) | (1,380) |
Finance costs | (156) | ||||
Loss before tax | (1,536) | ||||
Tax credit | 321 | ||||
Loss for the period | (1,215) |
Six months ended 30 September 2018 - continuing operations | |||||
Brand Performance | Online Performance | Data Analysis & Technology | Central Costs |
Total Group | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
Revenue | 6,070 | 6,546 | 7,052 | (937) | 18,731 |
Direct costs | (1,340) | (333) | (3,016) | 937 | (3,752) |
Gross profit | 4,730 | 6,213 | 4,036 | - | 14,979 |
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | (4,262) | (4,840) | (3,341) | (1,209) | (13,652) |
Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | 468 | 1,373 | 695 | (1,209) | 1,327 |
Depreciation | (48) | (109) | (19) | (43) | (219) |
Amortisation | (488) | (360) | (38) | - | (886) |
Other exceptional costs | (6) | (36) | (19) | (224) | (285) |
Acquisition related costs | - | - | - | (147) | (147) |
Charge for share based payments | - | - | - | (200) | (200) |
Operating profit / (loss) | (74) | 868 | 619 | (1,823) | (410) |
Finance costs | (157) | ||||
Loss before tax | (567) | ||||
Tax credit | 109 | ||||
Loss for the period | (458) |
5. Segment information (unaudited) (continued)
Year ended 31 March 2019 (audited) - continuing operations
Brand Performance | Online Performance | Data Analysis & Technology | Central Costs | Total Group | ||
£'000 | £'000 | £'000 | £'000 | £'000 | ||
Revenue | 11,685 | 13,289 | 12,446 | (1,866) | 35,554 | |
Direct costs | (2,504) | (609) | (4,502) | 1,906 | (5,709) | |
Gross profit | 9,181 | 12,680 | 7,944 | 40 | 29,845 | |
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | (8,224) | (9,931) | (6,225) | (2,136) | (26,516) | |
Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | 957 | 2,749 | 1,719 | (2,096) | 3,329 | |
Other operating income | 13 | - | - | - | 13 | |
Impairment to value of goodwill | (1,050) | - | - | - | (1,050) | |
Depreciation | (89) | (203) | (36) | (84) | (412) | |
Amortisation | (897) | (811) | (87) | - | (1,795) | |
Exceptional costs | (27) | (108) | (214) | (779) | (1,128) | |
Acquisition related costs | (66) | (100) | - | 577 | 411 | |
Charges for share based payments | (14) | (19) | (27) | (117) | (177) | |
Operating (loss)/profit | (1,173) | 1,508 | 1,355 | (2,499) | (809) | |
Finance income | 4 | |||||
Finance costs | (305) | |||||
Loss before tax | (1,110) | |||||
Tax credit | 175 | |||||
(935) | ||||||
The September 2018 segmental analysis has been restated to reallocate some costs between direct costs and operating expenses.
Capital employed | Brand Performance | Online Performance | Data Analysis & Technology | Central Costs | Discontinued Operations |
Total Group |
|
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
| |
30 September 2019 | 17,960 | 13,107 | 9,490 | (10,660) | - | 29,897 | |
31 March 2019 | 19,267 | 13,742 | 10,175 | (11,904) | - | 31,280 | |
30 September 2018 | 21,741 | 12,963 | 12,469 | (15,044) | 1,163 | 33,292 | |
|
6. Tax credit (unaudited)
A reconciliation of the charge that would result from applying the standard UK corporation tax rate to profit before tax to the tax credit is given below.
Six months ended 30 Sept 2019 | Six months ended 30 Sept 2018 | Audited year ended 31 March 2019 | ||
£'000 | £'000 | £'000 | ||
Recognised in the consolidated statement of comprehensive income: | ||||
Current year tax | 215 | (33) | (91) | |
Origination and reversal of temporary differences | 106 | 142 | 266 | |
Total tax credit | 321 | 109 | 175 | |
Loss before tax | (1,536) | (567) | (1,110) | |
Tax charge thereon at UK corporation tax rate of 19% (2018: 19%) | 292 | 108 | 211 | |
Effects of: | ||||
Non-deductible expenses | 29 | 1 | (36) | |
Total tax credit | 321 | 109 | 175 |
7. Loss per share (unaudited)
Six months ended 30 Sept 2019 | Six months ended 30 Sept 2018 | Audited year ended 31 March 2019 | |
Pence per share | Pence per share | Pence per Share | |
Basic loss per share from continuing operations | (1.38p) | (0.52p) | (1.15p) |
Basic loss per share from discontinued operations | - | (0.18p) | (1.72p) |
Basic loss per share | (1.38p) | (0.70p) | (2.87p) |
Diluted loss per share from continuing operations | (1.38p) | (0.52p) | (1.15p) |
Diluted loss per share from discontinued operations | - | (0.18p) | (1.72p) |
Diluted loss per share | (1.38p) | (0.70p) | (2.87p) |
Loss per share has been calculated by dividing the loss attributable to shareholders by the weighted average number of ordinary shares in issue during the period. The calculations of basic and diluted loss per share are:
Six months ended 30 Sept 2019 | Six months ended 30 Sept 2018 | Audited year ended 31 March 2019 | |||
£'000 | £'000 | £'000 | |||
Loss for the period attributable to shareholders from continuing operations | (1,289) | (482) | (1,075) | ||
Loss for the period attributable to shareholders from discontinued operations | - | (176) | (1,610) | ||
Total loss for the period attributable to shareholders | (1,289) | (658) | (2,685) | ||
Weighted average number of ordinary shares in issue: | Number '000 | Number '000 | Number '000 | ||
Basic | 93,432 | 93,432 | 93,432 | ||
Adjustment for share options, warrants and contingent shares | 3,688 | 1,481 | 1,707 | ||
Diluted | 97,120 | 94,913 | 95,139 | ||
| |||||
Adjusted earnings per share | |||||
Six months ended 30 Sept 2019 | Six months ended 30 Sept 2018 | Audited year ended 31 March 2019 | |||
Pence per share | Pence per share | Pence per share | |||
Basic adjusted earnings per share | (1.11p) | 0.56p | 1.39p | ||
Diluted adjusted earnings per share | (1.11p) | 0.55p | 1.36p | ||
Adjusted earnings per share have been calculated by dividing the profit attributable to shareholders before other income, amortisation, impairment, charges for share based payments and the current period tax charge by the weighted average number of ordinary shares in issue during the period. The numbers used in calculating the basic and diluted adjusted earnings per share are reconciled below:
Six months ended 30 Sept 2019 | Six months ended 30 Sept 2018 | Audited year ended 31 March 2019 | ||
£'000 | £'000 | £'000 | ||
Loss before tax from continuing operations | (1,536) | (743) | (2,685) | |
Amortisation | 777 | 950 | 1,885 | |
Impairment to the carrying value of goodwill | - | - | 1,050 | |
Loss on sale of HSM Limited | - | - | 1,370 | |
Acquisition related costs | 293 | 147 | (411) | |
Charge for share based payments | (785) | 200 | 177 | |
Adjusted profit attributable to shareholders | (1,251) | 554 | 1,386 | |
Current period tax charge | 215 | (33) | (91) | |
(1,036) | 521 | 1,295 | ||
8. Bank overdraft, borrowings and loans (unaudited)
30 Sept 2019 | 30 Sept 2018 | Audited 31 March 2019 | ||
Summary | £'000 | £'000 | £'000 | |
Bank overdraft | 549 | 884 | - | |
Borrowings, undiscounted cash flows | 5,200 | 6,250 | 5,650 | |
5,749 | 7,134 | 5,650 | ||
Borrowings are repayable as follows: | ||||
Within 1 year | ||||
Bank overdraft | 549 | 884 | - | |
Borrowings | 1,800 | 1,500 | 1,800 | |
Total due within 1 year | 2,349 | 2,384 | 1,800 | |
In more than one year but less than two years | 3,400 | 1,800 | 3,850 | |
In more than two years but less than three years | - | 1,800 | - | |
In more than three years but less than four years | - | 1,150 | - | |
Total amount due | 5,749 | 7,134 | 5,650 | |
Average interest rates at the balance sheet date were: | % | % | % | |
Overdraft | 2.00 | 2.00 | - | |
Term loan | 4.05 | 4.00 | 4.10 | |
Revolving credit facility | N/A | - | N/A |
As the loans are at variable market rates their carrying amount is equivalent to their fair value.
The borrowing facilities available to the Group at 30 September 2019 were £1.5 million (2018: £1.1 million) and, taking into account cash balances within the Group, there was £1.5 million (2018: £1.1 million) of available borrowing facilities.
A composite accounting system is set up with the Group's bankers, which allows debit balances on overdraft to be offset across the Group with credit balances.
Reconciliation of net debt | Cash at bank and in hand | Overdraft | Borrowings | Net debt |
£'000 | £'000 | £'000 | £'000 | |
30 September 2019 | 1 | (549) | (5,200) | (5,748) |
31 March 2019 | 690 | - | (5,650) | (4,960) |
30 September 2018 | 2 | (884) | (6,250) | (7,132) |
9. Provisions (unaudited)
30 Sept 2019 |
30 Sept 2018 | Audited 31 March 2019 | ||
£'000 | £'000 | £'000 | ||
At the beginning of the period | 42 | 151 | 151 | |
Disposal of HSM Limited | - | - | (109) | |
At the end of the period | 42 | 151 | 42 | |
Provisions relate to leases in the Group where the commercial benefit has either ceased or will cease before the normal expiry period.
10. Share capital (unaudited)
Authorised:
45p deferred shares | 5p ordinary shares |
| ||||
£'000 | £'000 |
| ||||
Authorised share capital at 31 March 2019 and 30 September 2019 | 45,000 | 10,000 |
| |||
| ||||||
Allotted, issued and fully paid
45p deferred shares | 5p ordinary shares | ||||
Number | Number | £'000 | |||
Issued share capital at 31 March 2019 and 30 September 2019 | 67,378,520 | 93,432,217 | 34,992 | ||
| |||||
11. Related party transactions (unaudited)
There were no significant changes in the nature and size of related party transactions for the period from those disclosed in the Annual Report for the year ended 31 March 2019.
12. Post balance sheet event
On 2 October 2019, Jaywing plc announced that entities associated with two of the major shareholders had acquired the Company's existing secured loan facility of £5.2m owed to Barclays Bank plc. The major shareholders immediately provided the Company with additional secured facilities by increasing the Jaywing facility by £3.0m to £8.2m, which enabled the Company to repay its outstanding overdraft and provided it with additional working capital.