Last checked at 26 Nov 2014 07:00
Date: 25 November 2014
On behalf of: Jaywing plc ("Jaywing", "the Company" or "the Group")
Embargoed: 0700hrs 26 November 2014
Jaywing plc
Interim Results 2014/2015
Jaywing plc (AIM: JWNG) today announced its interim results for the six months ended 30 September 2014.
Performance Highlights
· Gross profit £15.27m; (2013: £10.40m)
· EBITDA* before other income £1.98m; (2013: £1.09m)
· Net debt £5.52m; (2013: £1.88m); undrawn banking facilities of £3.75 million
· Adjusted basic earnings per share 1.76 pence; (2013: 1.55 pence)
· Adjusted diluted earnings per share 1.72 pence (2013: 1.50 pence)
*Before acquisition related costs and share based payment (credit)/charges
Commenting on the results, Ian Robinson, Chairman of Jaywing plc, said:
"These results show the success of our strategic restructuring and repositioning with significant growth in gross profit and adjusted EBITDA, reflecting the acquisition of Epiphany Solutions on 17th March 2014.
Market conditions continue to improve with client spend on the increase as consumer confidence returns. Many brands are turning their attention to delivering seamless and personalised customer experiences across multiple channels and devices.
Our enlarged business contains all of today's key specialisms - data, analytics, website design and build, search marketing, content marketing, social media and brand communications. With our collaborative business model and culture we are able to provide our clients with fully integrated solutions that treat their customers as individuals and deliver attractive returns on investment."
Enquiries:
Jaywing plc | |
Michael Sprot (Company Secretary) | Tel: 0114 281 1200
|
Cenkos Securities plc | |
Nicholas Wells | Tel: 020 7397 8900 |
INTERIM RESULTS
The growth in both gross profit and EBITDA as shown in the table below has continued in the six months to 30 September 2014. Gross profit increased to £15.27m (2013: £10.40m) and EBITDA increased to £1.98m (2013: £1.09m).
Continuing business EBITDA
6 months to 30 Sept 2014 | 6 months to 31 March 2014 | 6 months to 30 Sept 2013 | 6 months to 31 March 2013 | |
£'000 | £'000 | £'000 | £'000 | |
Revenue | 17,261 | 13,489 | 13,204 | 13,923 |
Direct costs | (1,990) | (2,264) | (2,805) | (3,698) |
Gross profit | 15,271 | 11,225 | 10,399 | 10,225 |
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and (credit)/charges for share based payments |
(13,295) |
(9,999) | (9,305) | (9,136) |
Operating profit before depreciation, amortisation, exceptional items, acquisition related costs and (credit)/charges for share based payments |
1,976 |
1,226 | 1,094 | 1,089 |
The business operates in two divisions: Agency Services and Media & Analysis. The performance of the business in these two areas is shown in note 4.
EBITDA in the Agency Services division has fallen slightly to £1.14m (2013: £1.37m), which is partially due to the creation of a new team in Content Marketing. This new team is already starting to show promising signs with a number of new client wins. Pleasingly, our efforts to build the profile of the business following the name change in 2013 have been recognised with the award for "Best Large Agency" at the Prolific North Northern Marketing Awards.
The Media & Analysis division has shown significant growth with gross profit increasing to £8.28m (2013: £3.09m) and EBITDA increasing to £2.24m (2013: £0.90m). This includes a full six months of trading from Epiphany which is performing in line with expectations.
Net debt at 30 September 2014 was £5.52m, down from £5.81m at 31 March 2014.
Overall, the start to the year has been very positive following the re-structuring last year. The new shape of the business is providing a higher degree of recurring revenues, more cross-selling opportunities and access to the digital data from which our data scientists can develop innovative products and services.
Ian Robinson
Chairman
25 November 2014
Consolidated interim statement of comprehensive income (unaudited)
Six months ended 30 Sept 2014 | Six months ended 30 Sept 2013 | Audited year ended 31 March 2014 | ||
Note | £'000 | £'000 | £'000 | |
Revenue | 4 | 17,261 | 13,204 | 26,693 |
Direct costs | (1,990) | (2,805) | (5,069) | |
Gross profit | 15,271 | 10,399 | 21,624 | |
Other operating income | - | 170 | 312 | |
Amortisation | (1,767) | (733) | (1,549) | |
Operating expenses | (14,656) | (9,785) | (20,715) | |
Operating (loss)/profit | (1,152) | 51 | (328) | |
Finance income | 3 | - | - | |
Finance costs | (138) | (35) | (52) | |
Net financing costs | (135) | (35) | (52) | |
(Loss)/Profit before tax | (1,287) | 16 | (380) | |
Tax credit/(expense) |
| (9) | (39) | 182 |
Loss for the period from continuing operations | (1,296) | (23) | (198) | |
Profit for the period from discontinued operations | - | 256 | 256 | |
Loss on measurement to fair value less costs to sell of discontinued operation | - | (4,847) | (4,853) | |
Loss for the period attributable to the equity holders of the parent | (1,296) | (4,614) | (4,795) | |
Loss per ordinary share | 6 | |||
Basic earnings per share | ||||
- Loss from continuing operations | (1.74p) | (0.03p) | (0.27p) | |
- Loss from discontinued operations | - | (6.16p) | (6.17p) | |
(1.74p) | (6.19p) | (6.44p) | ||
Diluted earnings per share | ||||
- Loss from continuing operations | (1.70p) | (0.03p) | (0.26p) | |
- Loss from discontinued operations | - | (5.94p) | (6.03p) | |
(1.70p) | (5.97p) | (6.29p) | ||
Consolidated interim balance sheet (unaudited)
30 Sept 2014 | 30 Sept 2013 | Audited 31 March 2014 | ||
Note | £'000 | £'000 | £'000 | |
Assets | ||||
Non-current assets | ||||
Property, plant and equipment | 627 | 336 | 638 | |
Goodwill | 30,446 | 24,621 | 30,442 | |
Other intangible assets | 9,772 | 5,487 | 11,539 | |
40,845 | 30,444 | 42,619 | ||
Current assets | ||||
Trade and other receivables | 8,376 | 6,612 | 8,691 | |
Cash and cash equivalents | 1,204 | 1 | 1,994 | |
Assets included in disposal group classified as held for sale | - | 8,041 | - | |
9,580 | 14,654 | 10,685 | ||
Total assets | 50,425 | 45,098 | 53,304 | |
Liabilities | ||||
Current liabilities | ||||
Bank overdraft | - | (1,374) | - | |
Other interest bearing loans and borrowings | 7 | (4,062) | (500) | (4,612) |
Trade and other payables | (8,497) | (3,339) | (8,886) | |
Tax payable | (713) | (540) | (492) | |
Provisions | (151) | - | (131) | |
(13,423) | (5,753) | (14,121) | ||
Non-current liabilities | ||||
Other interest bearing loans and borrowings | 7 | (2,657) | - | (3,188) |
Deferred tax liabilities | (1,983) | (1,261) | (2,337) | |
Liabilities included in disposal group classified as held for sale | - | (4,245) | - | |
(4,640) | (5,506) | (5,525) | ||
Total liabilities | (18,063) | (11,259) | (19,646) | |
Net assets | 32,362 | 33,839 | 33,658 | |
Equity | ||||
Capital and reserves attributable to equity holders of the company | ||||
Share capital | 34,051 | 34,051 | 34,051 | |
Share premium account | 6,608 | 6,608 | 6,608 | |
Capital redemption reserve | 125 | 125 | 125 | |
Shares purchased for treasury | (25) | (25) | (25) | |
Share option reserve | 88 | 137 | 88 | |
Retained earnings | (8,485) | (7,057) | (7,189) | |
Total equity | 32,362 | 33,839 | 33,658 |
Consolidated interim cash flow statement (unaudited)
Six months ended 30 Sept 2014 | Six months ended 30 Sept 2013 | Audited year ended 31 March 2014 | ||
Note | £'000 | £'000 | £'000 | |
Cash flow from operating activities | ||||
Loss for the period | (1,296) | (4,614) | (4,795) | |
Adjustment for: | ||||
Depreciation, amortisation and impairment | 1,955 | 5,931 | 2,063 | |
Loss on disposal | - | - | 5,442 | |
Movement in provisions | 20 | - | 131 | |
Finance income | (3) | - | - | |
Finance costs | 138 | 35 | 52 | |
Share based payment (credit)/charge | (5) | - | 36 | |
Taxation | 9 | 116 | (694) | |
Operating cash flow before changes in working capital | 818 | 1,468 | 2,235 | |
(Increase)/decrease in trade and other receivables | (326) | (591) | 366 | |
Increase in trade and other payables | 103 | 55 | 2,237 | |
Cash generated from operations | 595 | 932 | 4,838 | |
Interest received | 3 | - | - | |
Interest paid | (130) | (35) | (41) | |
Tax paid | - | (314) | (509) | |
Net cash flow from operating activities | 468 | 583 | 4,288 | |
Cash flows from investing activities | ||||
Acquisition of subsidiary Epiphany Solutions net of cash acquired | - | - | (10,543) | |
Acquisition of property, plant and equipment | (177) | (93) | (392) | |
Proceeds from disposal of assets | - | - | 3,288 | |
Net cash outflow from investing activities | (177) | (93) | (7,647) | |
Cash flows from financing activities | ||||
Increase in borrowings | - | - | 7,800 | |
Repayment of borrowings | (1,081) | (1,000) | (1,632) | |
Net cash (outflow)/inflow from financing activities | (1,081) | (1,000) | 6,168 | |
Net (decrease) / increase in cash, cash equivalents and bank overdrafts | (790) | (510) | 2,809 | |
Cash and cash equivalents at beginning of period | 1,994 | (815) | (815) | |
Cash and cash equivalents at end of period | 1,204 | (1,325) | 1,994 | |
Cash and cash equivalents comprise: | ||||
Cash at bank and in hand | 1,204 | 1 | 1,994 | |
Bank overdrafts | 7 | - | (1,326) | - |
Cash and cash equivalents at end of period | 1,204 | (1,325) | 1,994 | |
Included in continuing operations | 1,204 | (1,373) | 1,994 | |
Included in disposal group | - | 48 | - | |
1,204 | (1,325) | 1,994 | ||
Consolidated interim statement of changes in equity (unaudited)
Share capital | Share premium account | Hedging reserve | Capital redemption reserve | Treasury Shares | Share option reserve | Retained earnings | Total equity | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
Balance at 31 March 2013 | 34,051 | 6,608 | - | 125 | (25) | 137 | (2,443) | 38,453 |
Loss for the period | - | - | - | - | - | - | (4,614) | (4,614) |
Total comprehensive income for the period | - | - | - | - | - | - | (4,614) | (4,614) |
Balance at 30 September 2013 | 34,051 | 6,608 | - | 125 | (25) | 137 | (7,057) | 33,839 |
Transfer from share option reserve | - | - | - | - | - | (49) | 49 | - |
Transactions with owners | - | - | - | - | - | (49) | 49 | - |
Loss for the period | - | - | - | - | - | - | (181) | (181) |
Total comprehensive income for the period | - | - | - | - | - | - | (181) | (181) |
Balance at 31 March 2014 | 34,051 | 6,608 | - | 125 | (25) | 88 | (7,189) | 33,658 |
Loss for the period | - | - | - | - | - | - | (1,296) | (1,296) |
Total comprehensive income for the period | - | - | - | - | - | - | (1,296) | (1,296) |
Balance at 30 September 2014 | 34,051 | 6,608 | - | 125 | (25) | 88 | (8,485) | 32,362 |
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 Players House, 300 Attercliffe Common, Sheffield, S9 2AG.
The interim financial information was approved for issue on 25 November 2014. .
2. Basis of preparation
The consolidated interim financial statements for the six months ended 30 September 2014 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 2014 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 2014 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 2014, 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 2014 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 following standards and interpretations of relevance to the Group have been issued but are not yet effective and have not been adopted by the Group:
· IFRS 9 Financial Instruments (effective 1 January 2018)
· IAS 27 (Revised), Separate Financial Statements (effective 1 January 2016)
· IFRS 15 Revenue for Contracts with Customers (effective 1 January 2017)
These standards and interpretations are not expected to have any significant impact on the Group's financial statements.
Other standards and interpretations in issue but not yet effective are not considered to have any relevance to the Group.
4. Segment information (unaudited)
The Group reports its business activities in two areas: Agency Services and Media & Analysis being its two primary business activities. Unallocated represents the Group's head office function, along with intragroup transactions.
Total assets exclude intangible assets, cash and external borrowings which have not been allocated to operating segments.
All the Group's activities are carried out within the UK.
4. Segment information (unaudited) (continued)
Six months ended 30 September 2014 | ||||||
Agency Services | Media & Analysis | Unallocated | Total Group | |||
£'000 | £'000 | £'000 | £'000 | |||
Revenue | 8,053 | 9,399 | (191) | 17,261 | ||
Direct costs | (1,058) | (1,123) | 191 | (1,990) | ||
Gross profit | 6,995 | 8,276 | - | 15,271 | ||
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | (5,853) | (6,038) | (1,404) | (13,295) | ||
Operating profit / (loss) before depreciation, amortisation, exceptional items, acquisition related costs and credit for share based payments | 1,142 | 2,238 | (1,404) | 1,976 | ||
Depreciation | (126) | (58) | (4) | (188) | ||
Amortisation | (458) | (1,309) | - | (1,767) | ||
Compensation for loss of office | (37) | - | - | (37) | ||
Acquisition related costs | (106) | (1,035) | - | (1,141) | ||
Credit for share based payments | - | - | 5 | 5 | ||
Operating profit / (loss) | 415 | (164) | (1,403) | (1,152) | ||
Finance costs | (135) | |||||
Profit before tax | (1,287) | |||||
Tax expense | (9) | |||||
Loss for the period | (1,296) | |||||
Six months ended 30 September 2013 | ||||||
Agency Services | Media & Analysis | Unallocated | Continuing Group | Disposal Group | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Revenue | 9,491 | 4,455 | (742) | 13,204 | 7,382 | 20,586 |
Direct costs | (2,185) | (1,362) | 742 | (2,805) | (1,439) | (4,244) |
Gross profit | 7,306 | 3,093 | - | 10,399 | 5,943 | 16,342 |
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | (5,938) | (2,190) | (1,177) | (9,305) | (5,375) | (14,680) |
Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | 1,368 | 903 | (1,177) | 1,094 | 568 | 1,662 |
Other operating income | 153 | 17 | - | 170 | - | 170 |
Depreciation | (92) | (21) | (4) | (117) | (48) | (165) |
Amortisation | (464) | (269) | - | (733) | (187) | (920) |
Compensation for loss of office | (41) | - | (115) | (156) | - | (156) |
Acquisition related costs | (207) | - | - | (207) | - | (207) |
Operating profit / (loss) | 717 | 630 | (1,296) | 51 | 333 | 384 |
Finance costs | (35) | - | (35) | |||
Profit before tax | 16 | 333 | 349 | |||
Tax expense | (39) | (77) | (116) | |||
(Loss)/profit for the period | (23) | 256 | 233 | |||
4. Segment information (unaudited) (continued)
Year ended 31 March 2014 (audited) | ||||||
Agency Services | Media & Analysis | Unallocated | Continuing Group | Disposal Group | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Revenue | 17,917 | 9,875 | (1,099) | 26,693 | 7,382 | 34,075 |
Direct costs | (3,543) | (2,684) | 1,158 | (5,069) | (1,439) | (6,508) |
Gross profit | 14,374 | 7,191 | 59 | 21,624 | 5,943 | 27,567 |
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | (11,749) | (4,878) | (2,677) | (19,304) | (5,375) | (24,679) |
Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments | 2,625 | 2,313 | (2,618) | 2,320 | 568 | 2,888 |
Other operating income | 281 | 31 | - | 312 | - | 312 |
Depreciation | (232) | (41) | (6) | (279) | (48) | (327) |
Amortisation | (924) | (625) | - | (1,549) | (187) | (1,736) |
Loss before tax on disposal | - | - | - | - | (5,442) | (5,442) |
Compensation for loss of office | (66) | - | (116) | (182) | - | (182) |
Release of provisions | 73 | - | 125 | 198 | - | 198 |
Acquisition related costs | (270) | (441) | (401) | (1,112) | - | (1,112) |
Charges for share based payments | - | - | (36) | (36) | - | (36) |
Operating profit / (loss) | 1,487 | 1,237 | (3,052) | (328) | (5,109) | (5,437) |
Finance income | - | - | - | |||
Finance costs | (52) | - | (52) | |||
Loss before tax | (380) | (5,109) | (5,489) | |||
Tax expense | 182 | 512 | 694 | |||
Loss for the period | (198) | (4,597) | (4,795) | |||
Total assets | Agency Services | Media & Analysis | Unallocated | Continuing Group | Disposal Group | Total |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
30 September 2014 | 24,487 | 28,772 | (2,834) | 50,425 | - | 50,425 |
31 March 2014 | 27,078 | 28,035 | (1,809) | 53,304 | - | 53,304 |
30 September 2013 | 24,864 | 12,087 | 106 | 37,057 | 8,041 | 45,098 |
5. Tax expense (unaudited)
A reconciliation of the charge that would result from applying the standard UK corporation tax rate to profit before tax to the tax charge is given below.
Six months ended 30 Sept 2014 | Six months ended 30 Sept 2013 | Audited year ended 31 March 2014 | ||
£'000 | £'000 | £'000 | ||
Recognised in the consolidated statement of comprehensive income: | ||||
Current year tax | 308 | 320 | 433 | |
Origination and reversal of temporary differences | (299) | (204) | (1,127) | |
Total tax charge | 9 | 116 | (694) | |
Loss before tax | (1,287) | (4,498) | (5,489) | |
Tax charge thereon at UK corporation tax rate of 21% (2013: 23%) | (270) | (1,035) | (1,262) | |
Effects of: | ||||
Non-deductible expenses | 240 | - | 883 | |
Impairment of goodwill | - | 1,115 | - | |
Other | 39 | 36 | (27) | |
Prior year adjustment | - | - | (288) | |
Total tax charge | 9 | 116 | (694) |
6. Loss per share (unaudited)
Six months ended 30 Sept 2014 | Six months ended 30 Sept 2013 | Audited year ended 31 March 2014 | ||
Pence per share | Pence per share | Pence per Share | ||
Basic earnings per share | ||||
- Loss from continuing operations | (1.74p) | (0.03p) | (0.27p) | |
- Loss from discontinued operations | - | (6.16p) | (6.17p) | |
(1.74p) | (6.19p) | (6.44p) | ||
Diluted earnings per share | ||||
- Loss from continuing operations | (1.70p) | (0.03p) | (0.26p) | |
- Loss from discontinued operations | - | (5.94p) | (6.03p) | |
(1.70p) | (5.97p) | (6.29p) |
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 2014 | Six months ended 30 Sept 2013 | Audited year ended 31 March 2014 | ||
£'000 | £'000 | £'000 | ||
Loss for the period from continuing operations | (1,296) | (23) | (198) | |
Loss for the period from discontinued operations | - | (4,591) | (4,597) | |
Weighted average number of ordinary shares in issue: | Number '000 | Number '000 | Number '000 | |
Basic | 74,505 | 74,505 | 74,505 | |
Adjustment for share options, warrants and contingent shares | 1,755 | 2,737 | 1,755 | |
Diluted | 76,260 | 77,242 | 76,260 | |
| ||||
Adjusted earnings per share | ||||
Six months ended 30 Sept 2014 | Six months ended 30 Sept 2013 | Audited year ended 31 March 2014 | ||
Pence per share | Pence per share | Pence per Share | ||
Basic adjusted earnings per share | 1.76p | 1.55p | 3.23p | |
Diluted adjusted earnings per share | 1.72p | 1.50p | 3.15p |
Adjusted earnings per share have been calculated by dividing the profit attributable to shareholders before other income, amortisation, impairment and charges for share based payments 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 2014 | Six months ended 30 Sept 2013 | Audited year ended 31 March 2014 | ||
£'000 | £'000 | £'000 | ||
(Loss)/profit before tax and impairment | (1,287) | 349 | (5,489) | |
Amortisation | 1,767 | 920 | 1,736 | |
Loss before tax on disposal | - | - | 5,442 | |
Other income | - | |||
Acquisition related costs | 1,141 | 207 | 1,112 | |
(Credit)/charges for share based payments | (5) | - | 36 | |
Adjusted profit attributable to shareholders | 1,616 | 1,476 | 2,837 | |
Current period tax charge | (308) | (320) | (433) | |
1,308 | 1,156 | 2,404 | ||
7. Bank overdraft, borrowings and loans (unaudited)
30 Sept 2014 | 30 Sept 2013 | Audited 31 March 2014 | ||
Summary | £'000 | £'000 | £'000 | |
Bank overdraft | - | 1,326 | - | |
Borrowings, undiscounted cash flows | 6,719 | 500 | 7,800 | |
6,719 | 1,826 | 7,800 | ||
Borrowings are repayable as follows: | ||||
Within 1 year | ||||
Bank overdraft | - | 1,326 | - | |
Borrowings | 4,062 | 500 | 4,612 | |
Total due within 1 year | 4,062 | 1,826 | 4,612 | |
In more than one year but less than two years | 1,062 | - | 1,062 | |
In more than two years but less than three years | 1,063 | - | 1,063 | |
In more than three years but less than four years | 532 | - | 1,063 | |
Total amount due | 6,719 | 1,826 | 7,800 | |
Average interest rates at the balance sheet date were: | % | % | % | |
Overdraft | 2.75 | 3.35 | 2.75 | |
Term loan | 3.25 | - | 3.25 | |
Revolving credit facility | 3.25 | 3.35 | 3.25 |
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 2014 were £2.5 million (2013: £3.9 million) and, taking into account cash balances within the Group, there was £3.8 million (2013: £2.1 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 2014 | 1,204 | - | (6,719) | (5,515) |
31 March 2014 | 1,994 | - | (7,800) | (5,806) |
30 September 2013 | 1 | (1,326) | (500) | (1,825) |
8. Provisions (unaudited)
30 Sept 2014 | 30 Sept 2013 | Audited 31 March 2014 | ||
£'000 | £'000 | £'000 | ||
At the beginning of the period | 131 | - | - | |
Additional provisions | 20 | - | 131 | |
At the end of the period | 151 | - | 131 | |
Provisions relate to leases in the Group where the commercial benefit has either ceased or will cease before the normal expiry period.
9. Share capital (unaudited)
Authorised:
45p deferred shares | 5p ordinary shares |
| ||||
£'000 | £'000 |
| ||||
Authorised share capital at 31 March 2014 and 30 September 2014 | 45,000 | 10,000 |
| |||
| ||||||
Allotted, issued and fully paid
45p deferred shares | 5p ordinary shares | ||||
Number | Number | £'000 | |||
Issued share capital at 31 March 2014 and at 30 September 2014 | 67,378,520 | 74,604,999 | 34,051 | ||
| |||||
No shares were issued in the period.
10. 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 2014.
INDEPENDENT REVIEW REPORT TO JAYWING PLC
Introduction
We have been engaged by the company to review the interim financial information in the half-yearly financial report for the six months ended 30 September 2014 which comprises the consolidated interim statement of comprehensive income, the consolidated interim balance sheet, the consolidated interim cash flow statement, the consolidated interim statement of changes in equity and the related notes 1 to 10. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the interim financial information are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.
As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The interim financial information in the half-yearly financial report has been prepared in accordance with the basis of preparation in note 2.
Our responsibility
Our responsibility is to express to the company a conclusion on the interim financial information in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim financial information in the half-yearly financial report for the six months ended 30 September 2014 is not prepared, in all material respects, in accordance with the basis of accounting described in note 2.
Grant Thornton UK LLP
Chartered Accountants
Sheffield
25 November 2014