28 Mar 2017 07:00
28 March 2017
Premier Technical Services Group PLC
("PTSG" or the "Group")
Strong organic growth with record turnover and profits
Final Results
Premier Technical Services Group PLC ("PTSG" or the "Group"), the niche specialist services provider, announces its final results for the year ended 31 December 2016.
Key highlights
· Group revenue up 52% to £39.2m (2015: £25.8m)
· Gross profit up 45% to £20.3m (2015: £14.0m)
· Adjusted operating profit* increased 49% to £7.9m (2015: £5.3m)
· Adjusted profit before tax** up 49% to £7.5m (2015: £5.0m)
· Adjusted eps* up 57% to 7.63p (2015: 4.87p)
· Final dividend of 0.70p (2015: 0.54p)
· Underlying organic growth rate 20%
· Two acquisitions successfully integrated, extending our service offering to include dry risers in the fire protection and suppression market
· The six 2015 acquisitions have been successfully integrated into the Group
John Foley, Chairman of Premier Technical Services Group PLC commented
"2016 was a successful year in terms of strong, profitable organic growth delivering record levels of turnover, gross profit and adjusted operating profits. 2017 has started well with continuing sales growth and new record levels of orders in hand and we remain both confident of our prospects and enthusiastic about the future."
Enquiries:
PTSG | +44 (0)1977 668 771 |
Paul Teasdale, Chief Executive Officer
|
|
Numis Securities | +44 (0)207 260 1000 |
Stuart Skinner / Kevin Cruickshank / Michael Burke |
|
Hudson Sandler | +44 (0)207 796 4133 |
Charlie Jack / Jocelyn Spottiswoode |
|
*before adjusting items of £4.7m (2015: £4.0m) resulting in a statutory operating profit of £3.1m (2015: £1.3m) and eps of 2.61p (2015:0.57p)
**before adjusting items of £4.8m (2015: £4.2m) resulting in a statutory profit before tax of £2.6m (2015: £0.8m)
About PTSG - www.ptsg.co.uk
Premier Technical Services Group PLC is the UK's leading provider of façade access and fall arrest equipment services, lightning protection and electrical testing, high-level cleaning and training solutions.
Operating through four divisions, Access & Safety, Electrical Services, High Level Cleaning and Training Solutions, the Group provides highly-engineered industrial products and quality services and has a substantial presence in a number of niche markets.
PTSG provides a central information service for its businesses and champions the dissemination of key information and best practice. PTSG unites its constituent businesses under one clear identity, which supports smarter working and delivers top class service to its customers.
Headquartered in Castleford, West Yorkshire, the Group employs more than 450 people across 16 UK sites, who service more than 150,000 buildings across the whole of the UK for over 15,000 customers in a wide range of industries. The Company is listed on the LSE AIM (PTSG.L)
Chairman's statement
2016 - A summary
I am pleased to report that PTSG achieved record levels of turnover, gross profit, adjusted EBITDA, underlying profit before taxation and adjusted earnings per share in 2016. Underlying organic revenue growth (adjusting for the impact of acquisitions) was a healthy 20% and this was the tenth consecutive year of double digit organic growth. We also continued with our acquisition strategy in July 2016, when the Group purchased the entire issued share capital of Dry Risers UK Limited and Dry Risers Maintenance Ltd in order to expand our service offering into the niche fire protection and suppression market. After the year end, we purchased the entire issued share capital of Nimbus Lightning Protection Ltd in January 2017 to further strengthen our service offering in an area of key importance for the Group.
Financial overview of results
Turnover increased by 52% to £39.2 million (2015: £25.8 million). Gross profit increased by 45% to £20.3 million (2015: £14.0 million). Adjusted EBITDA increased by 45% to £9.0 million (2015: £6.2 million) and underlying profit before taxation (before adjusting items of £4.8 million) increased by 49% to £7.5 million (£5.0 million). Adjusting items were one off or non trading items including £1.9 million of share option costs, £0.5m of intangible amortisation costs £1.9 million for contingent payments in relation to acquisitions and £0.5m restructuring costs. Adjusted earnings per share increased by 57% to 7.63 pence (2015: 4.87 pence).
The Board has recommended a final dividend of 0.7 pence per share which together with the interim dividend paid of 0.7 pence is a 40% increase on the dividends paid in respect of 2015. This will be paid to shareholders on the register on 30 June 2017 and the expected payment date is 21 July 2017.
Net debt at 31 December 2016 increased to £13.6 million (2015: £7.6 million) following payments of £2.7 million in relation to acquisition of businesses including payment of deferred consideration and necessary increases in working capital resulting from the substantial working capital increase associated with the Group's increased size and scale. The major covenant contained in the Group's RCF facility relating to quantum of borrowings is that total net debt should not exceed 2.25x adjusted EBITDA and the Group trades very comfortably within all its covenants. As previously stated, the Board is comfortable with core borrowings of up to 1.75x adjusted EBITDA at this stage in the Group's development.
Operational highlights
The Board was pleased with both the 20% underlying organic revenue growth achieved in 2016 and the performance of Dry Riser acquisitions since July 2016. The range of niche specialist services that we are now able to offer customers is an important reason behind our success in both signing new and extending the scope of existing framework agreements with a number of important customers.
Our gross margin performance was in line with the Board's expectations. As stated in my FY 2015 report the major factor which impacts the Group's gross margin performance is the relative mix of installation sales (which carry higher material costs) to testing and repair sales. In 2016, installation sales amounted to £17.4 million (2015: £9.0 million). The gross margin on testing and repair sales in 2016 was 67% (2015: 66%). This continued level of good operational performance is testament to the strength of the Group's operating model which operates successfully across a range of niche specialist services.
The increase in installation sales feeds through into increased testing and repair sales in future years but 2016 saw a higher level of installation activity in the second half of the year than we had anticipated, resulting in an increased working capital requirement at the year end which is expected to reduce in 2017.
The Group provides services to over 150,000 buildings and therefore produces a very high number of relatively low value invoices in relation to its testing and repair activities. The supporting infrastructure in the Health and Safety, contract renewal, IT and accounts areas of the business needs to be robust in order to support this level of activity and senior management is as diligent in its focus on these areas as it is on direct operational performance issues. The proprietary Clarity System that has been developed in house to efficiently manage the high volume of low value transactions that is a feature of the Group is now fully operational in our Access and Safety division and will be carefully implemented across the Group during 2017 and 2018.
The Group continues to secure necessary industry accreditations and it was pleasing to win two PFM partnership awards in November 2016. These awards show that our efficient and innovative operating model is appreciated and recognised by others within the facilities management sector and our track record shows that this model remains scalable across a broad range of niche specialist services.
Strategy
PTSG celebrated its tenth anniversary in February 2017. It was founded with a very clear objective to build a Group which could become the UK's leading provider of niche specialist services to customers in the facilities management, property and construction sectors. We have a clear and distinct operating model which is both scalable and efficient across a broad range of services on a national scale. Excellent customer service is at the heart of everything we do. We have undertaken and successfully integrated 21 acquisitions since formation and developed market leading positions in our chosen service areas. Our acquisition policy is now focused on a new objective which is to seek sector dominance in our chosen areas of operation, especially in the testing and repair sectors. Our organic growth strategy now recognises that we have a major opportunity to sell an enhanced range of specialist services to our customer base. We expect that this new focus will benefit our shareholders in years to come.
People
On behalf of the Board I would like to thank all of our employees for their hard work and commitment to ensure that PTSG remains the service provider of choice for our customers.
Outlook
We undertook an IPO in February 2015 in order to assist us with our ambitious growth plans; those plans are now more detailed but no less ambitious after two years as a public company and we continue to explore an active pipeline of acquisition opportunities. 2016 was a successful year in terms of the delivery of strong, profitable organic growth and the Board is pleased to note that 2017 has started very well with continuing sales growth and new record levels of orders in hand held across the Group. We remain both confident of our prospects and enthusiastic about the future.
John Foley
Chairman
Chief Executive's review
Overview
2016 saw PTSG perform exceptionally well across our divisions, once again delivering well above and beyond expectations. We achieved a number of the strategic priorities we identified at the start of the year, resulting in an even more comprehensive service offering, supported by the technology to deliver a measurably improved service for our customers. This has seen our underlying profits before tax move ahead apace, whilst delivering a strong return for our investors. We have also identified areas within our business for improvement, and we look forward to setting out new objectives to enable us to continue growing at a sustainable rate.
2016 saw the beginning of our tenth anniversary year and we celebrate a decade in business in February 2017. From a standing start in 2007, we have achieved sustained growth in every year of operation. We have combined an ambitious strategy of organic growth with business acquisition, forging a business model which has yielded impressive and continued growth and profitability.
Once again in 2016, the Group achieved double-digit growth, with a revenue increase of 52% to £39.2m, delivering a pre-tax operating profit (before adjusting items) of £7.9m. This builds on the previous year, which saw our turnover increase to £25.8m. These figures underline the effectiveness and sustainability of our business model, with significant further organic and acquisitive growth expected in the year ahead.
PTSG is the only UK listed entity to operate within many of its niche markets. We know from considerable experience that the industry's larger contractors prefer to trade with a publicly listed company , and this has helped to strengthen our position in the marketplace and will also be a key growth factor going forward. Our aim is threefold: to continue to deliver outstanding service to our growing customer base; to make PTSG the best place to work so that we are always the best place to do business with, and to deliver continued shareholder value. This is what my leadership team and I obsess on day in, day out.
Evolving and improving
The facilities management industry is highly competitive, and it is through striving to deliver the best possible service for our customers that we have grown to occupy a leading position in the UK market place. In order to continue delivering sustainable value for both our customers and shareholders, we regularly review the performance of our four divisions to identify areas for improvement.
Our contract renewal rate remains in excess of 80 per cent, and while pleasing and significantly better than other organisations in our sector, this remains an area for us to improve upon. We are working hard to try and understand, outside project completions and close outs, why some of our customers decide not to renew their working relationship with us upon completion of ongoing contracts. It is a relatively small number, but nevertheless it is important to us.
2016 saw our continued investment in, and development and implementation of, Clarity, our proprietary software, and the first administrative system of its kind to be completely non-manual. It is already enabling us to serve our customers far better, with work tracked in real time and documents created or retrieved instantly and remotely. We will continue to look for other ways in which technology can be used to our customers' - and our own teams' - advantage.
Value for money is also crucially important to customer satisfaction. Our business model ensures PTSG can provide customers with a competitive pricing structure, as we aim to be the niche specialist services provider offering the best value in the UK. This in turn results in repeat purchase and higher profits due to the quantum of work we are commissioned to undertake and the economies of scale in our unique delivery system.
Of course, it is the nature of any business that some contracts are short-term. However, something that differentiates PTSG from our competitors is our bundled service provision. We entered the marketplace having identified the need for one organisation to provide multiple niche specialist services under one roof. Since then, we have fully committed to our aim of offering the full range of high-quality engineered products and services required by customers and contractors.
We have gained a strong reputation throughout the industry for being able to meet all our customers' needs. As working at height specialists, we manage the full range of cradle and fall arrest services - from design to installation and maintenance; our electrical services encompass everything from lightning protection systems to dry risers; our high-level cleaning service extends to all areas of a building, using techniques such as pressure cleaning and even specialist painting and window replacement, as required.
Finally - and importantly - we also provide training for organisations. By offering our customers everything 'under one roof', we save them the time, effort and cost of procuring these services separately.
Acquisitions
Although organic growth continues to be the cornerstone of our success, our business acquisition strategy has been fundamental in securing our position as the complete niche specialist service provider.
Our first acquisition was of an access and safety company, National Cradle Maintenance Limited, in 2007, which was funded by £0.9m of equity from the founders. Since then, and up to the end of 2016, we have made 20 carefully targeted and self-funded acquisitions, which have resulted in our comprehensive service offering across our market sectors. We will continue to identify further opportunities to fill potential gaps in our service provision.
The businesses we have acquired have enabled us to increase our leadership capacity in several areas of the business as well as strengthening our management and skilled workforce, our production capacity and complementary or proprietary products or services. They have also been a way to expand the company geographically as well as managing business risk through market and customer diversification.
Whilst we have expanded through acquisition, subsequent organic growth has accounted for more than half of the increase in total revenues since 2007. Bundled service provision represents the other key factor in our growth going forward.
The acquisition of the Dry Risers business in July 2016 provided a new service offering for our clients and is showing good growth following its integration into the Group.
Industry sponsorship
Late in 2016, we were pleased to announce our support of the Stoddart Review, a new report into the benefits the facilities management (FM) industry holds for UK businesses. The report revealed that smarter use of Britain's office space could improve productivity by between 1 per cent and 3.5 per cent, and deliver a boost of up to £70bn to the economy. Such findings help to raise awareness amongst senior executives across the UK about the role of FM in workplace productivity - and we are delighted to be part of that.
Support elsewhere in the industry, such as our sponsorship of the ATLAS, PFM and BIFM awards, make a valuable contribution to the sustainability of the industry; and PTSG becomes an integral part of the facilities management supply chain network in the process.
Divisional results
Each of our divisions has contributed to the exceptional performance of PTSG in 2016, thanks to our teams of highly trained experts.
Access and Safety
Safety Testing and Installation, Cradle Maintenance and Installation. As the UK's leading supplier of fall arrest systems and safety testing services, we achieved a turnover of £18.9m in 2016 (2015: £12.0m) - a 48% contribution to the turnover of the Group. Adjusted operating profits increased to £3.1m from £2.0m in 2016 with growth across all segments.
Electrical Services
Lightning Protection, Fixed Wire and PAT Testing, Dry Risers, Fire Alarms and Extinguishers and Steeplejack Services. We achieved a turnover of £17.6m in 2016 (2015: £10.4m) - a 45% contribution to the turnover of the Group. Adjusted operating profits increased from £2.5m in 2015 to £4.0m. We saw good growth across all services and the acquisitions made in 2015 showed good progress.
High Level Cleaning
High Level Window Cleaning, Gutter Cleaning, Building Cleaning and Pressure Cleaning. Our team members are experts at working at height and performing a high-quality service even in the most inaccessible locations. In 2016 we achieved a turnover of £2.7m (2015: £3.4m) - a 7% contribution to the turnover of the Group. The decline was a result of one off technical work undertaken in 2015 but not repeated in 2016. Adjusted operating profits rose from £0.7m in 2015 to £0.8m in 2016.
Training Solutions
Training, Consultancy and Insurance Inspections. As well as training our own people - the best in the business - we work closely with our clients to ensure the safety of their staff through our bespoke training programmes.
Looking ahead
PTSG is a more capable and better equipped niche services provider than at any time in the Company's ten year history. In the coming year, we will continue to focus on delivering a high-quality service to our customers, while looking for further ways to augment our offering.
On 1 September 2016, PTSG appointed Numis Securities Limited (Numis) as our nominated adviser and broker. Numis is one of the UK's most respected institutional stockbrokers and corporate advisors, recognised as being one of the leading providers of capital for UK listed companies.
Finally, I would like to thank all our people for their hard work and commitment. I am continually impressed by the quality of service our teams deliver, always with safety in mind. This gives me great pride as we aim to set the standard other service providers strive for.
Paul Teasdale
Chief Executive
Consolidated statement of comprehensive income
for the year ended 31 December 2016
|
| Year ended 31 December 2016 | Year ended 31 December 2015 | ||||
|
| Before | Adjusting |
| Before | Adjusting |
|
|
| adjusting | items |
| adjusting | items |
|
|
| items |
| Total | items |
| Total |
|
| £ | £ | £ | £ | £ | £ |
Revenue |
| 39,194,766 | - | 39,194,766 | 25,770,503 | - | 25,770,503 |
Cost of sales |
| (18,863,527) | - | (18,863,527) | (11,785,079) | - | (11,785,079) |
Gross profit |
| 20,331,239 | - | 20,331,239 | 13,985,424 | - | 13,985,424 |
Net operating costs |
| (12,474,374) | (4,739,988) | (17,214,362) | (8,709,361) | (4,016,196) | (12,725,557) |
Total operating profit |
| 7,856,865 | (4,739,988) | 3,116,877 | 5,276,063 | (4,016,196) | 1,259,867 |
Finance costs |
| (405,076) | (97,402) | (502,478) | (273,437) | (155,446) | (428,883) |
Profit before taxation |
| 7,451,789 | (4,837,390) | 2,614,399 | 5,002,626 | (4,171,642) | 830,984 |
Taxation |
| (730,370) | 415,544 | (314,826) | (814,927) | 473,046 | (341,881) |
Profit attributable to owners of the parent |
| 6,721,419 | (4,421,846) | 2,299,573 | 4,187,699 | (3,698,596) | 489,103 |
Total comprehensive income/(expense) for the year attributable to owners of the parent |
| 6,721,419 | (4,421,846) | 2,299,573 | 4,187,699 | (3,698,596) | 489,103 |
|
|
|
|
|
|
|
|
Earnings per share (pence): |
|
|
|
|
|
|
|
Basic and diluted earnings per share |
|
|
| 2.61 |
|
| 0.57 |
Consolidated statement of changes in equity
for the year ended 31 December 2016
|
| Attributable to owners of the parent |
|
| ||||
|
|
| Capital | Share |
|
| Non- |
|
|
| Share | redemption | Premium | Retained |
| controlling | Total |
|
| capital | reserve | Account | earnings | Total | interest | equity |
|
| £ | £ | £ | £ | £ | £ | £ |
Balance at 31 December 2014 |
| 771,437 | 128,573 | - | 221,087 | 1,121,097 | 179 | 1,121,276 |
|
|
|
|
|
|
|
|
|
Profit for the year |
| - | - | - | 489,103 | 489,103 | - | 489,103 |
Total comprehensive income |
| - | - | - | 489,103 | 489,103 | - | 489,103 |
Transactions with owners |
|
|
|
|
|
|
|
|
Issue of share capital |
| 105,010 | - | 4,942,818 | - | 5,047,828 | - | 5,047,828 |
Share based payments charge |
| - | - | - | 2,333,915 | 2,333,915 | - | 2,333,915 |
Tax credit relating to share based payments |
| - | - | - | 462,592 | 462,592 | - | 462,592 |
Ordinary dividends paid |
| - | - | - | (533,825) | (533,825) | - | (533,825) |
Reduction of capital |
| - | - | (4,942,818) | 4,942,818 | - | - | - |
Transactions with owners |
| 105,010 | - | - | 7,205,500 | 7,310,510 | - | 7,310,510 |
Balance at 31 December 2015 |
| 876,447 | 128,573 | - | 7,915,690 | 8,920,710 | 179 | 8,920,889 |
|
|
|
|
|
|
|
|
|
Profit for the year |
| - | - | - | 2,299,573 | 2,299,573 | - | 2,299,573 |
Total comprehensive income |
| - | - | - | 2,299,573 | 2,299,573 | - | 2,299,573 |
Transactions with owners |
|
|
|
|
|
|
|
|
Issue of share capital |
| 7,578 | - | 548,418 | - | 555,996 | - | 555,996 |
Share based payments charge |
| - | - | - | 1,243,841 | 1,243,841 | - | 1,243,841 |
Share based deferred consideration charge |
| - | - | - | 400,000 | 400,000 | - | 400,000 |
Tax charge relating to share based payments |
| - | - | - | (283,935) | (283,935) | - | (283,935) |
Ordinary dividends paid |
| - | - | - | (1,092,472) | (1,092,472) | - | (1,092,472) |
Transactions with owners |
| 7,578 | - | 548,418 | 267,434 | 823,430 | - | 823,430 |
Balance at 31 December 2016 |
| 884,025 | 128,573 | 548,418 | 10,482,697 | 12,043,713 | 179 | 12,043,892 |
.
Consolidated balance sheet
as at 31 December 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Restated |
|
|
|
|
|
| 2016 | 2015 |
|
|
|
|
|
| £ | £ |
Assets |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Intangible assets |
|
|
|
|
| 12,365,481 | 10,735,826 |
Property, plant and equipment |
|
|
|
|
| 3,195,880 | 2,373,544 |
Deferred tax asset |
|
|
|
|
| 417,336 | 784,061 |
Total non-current assets |
|
|
|
|
| 15,978,697 | 13,893,431 |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Inventories |
|
|
|
|
| 503,307 | 381,760 |
Trade and other receivables |
|
|
|
|
| 20,303,115 | 13,108,313 |
Cash at bank and in hand |
|
|
|
|
| 6,543,749 | 4,842,899 |
Total current assets |
|
|
|
|
| 27,350,171 | 18,332,972 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade and other payables |
|
|
|
|
| 7,231,346 | 6,429,608 |
Bank overdraft |
|
|
|
|
| 8,560,270 | 5,160,365 |
Finance leases |
|
|
|
|
| 767,303 | 641,001 |
Borrowings |
|
|
|
|
| 25,033 | 25,033 |
Deferred consideration |
|
|
|
|
| 1,053,070 | 1,125,897 |
Current tax liabilities |
|
|
|
|
| 296,003 | 749,642 |
Total current liabilities |
|
|
|
|
| 17,933,025 | 14,131,546 |
Net current assets/(liabilities) |
|
|
|
|
| 9,417,146 | 4,201,426 |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
Borrowings |
|
|
|
|
| 10,010,155 | 5,993,808 |
Loan notes |
|
|
|
|
| 2,596,206 | 2,527,000 |
Finance leases |
|
|
|
|
| 745,590 | 653,160 |
Total non-current liabilities |
|
|
|
|
| 13,351,951 | 9,173,968 |
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
| 12,043,892 | 8,920,889 |
|
|
|
|
|
|
|
|
Equity attributable to the owners of the parent |
|
|
|
|
|
|
|
Share capital |
|
|
|
|
| 884,025 | 876,447 |
Capital redemption reserve |
|
|
|
|
| 128,573 | 128,573 |
Share premium account |
|
|
|
|
| 548,418 | - |
Retained earnings |
|
|
|
|
| 10,482,697 | 7,915,690 |
|
|
|
|
|
| 12,043,713 | 8,920,710 |
Non-controlling interests |
|
|
|
|
| 179 | 179 |
Total equity |
|
|
|
|
| 12,043,892 | 8,920,889 |
Consolidated cash flow statement
for the year ended 31 December 2016
|
|
|
|
|
| 2016 | 2015 |
|
|
|
|
|
| £ | £ |
Cash flows from operating activities |
|
|
|
|
|
|
|
Profit after taxation |
|
|
|
|
| 2,299,573 | 489,103 |
Adjustments for: |
|
|
|
|
|
|
|
Income tax charge |
|
|
|
|
| 314,826 | 341,881 |
Depreciation |
|
|
|
|
| 1,164,362 | 898,889 |
Amortisation of intangible assets |
|
|
|
|
| 499,233 | 108,600 |
Profit on disposal of property, plant and equipment |
|
|
|
|
| (316,134) | (384,778) |
Finance costs |
|
|
|
|
| 502,478 | 273,437 |
Share based payments |
|
|
|
|
| 1,243,841 | 2,333,915 |
|
|
|
|
|
| 5,708,179 | 4,061,047 |
Changes in working capital: |
|
|
|
|
|
|
|
Increase in inventories |
|
|
|
|
| (86,399) | (40,995) |
Increase in trade and other receivables |
|
|
|
|
| (6,092,755) | (3,673,880) |
Increase/(decrease) in trade and other payables |
|
|
|
|
| 1,038,646 | (876,303) |
Cash generated/(used in) from operations |
|
|
|
|
| 567,671 | (530,131) |
|
|
|
|
|
|
|
|
Interest paid |
|
|
|
|
| (433,272) | (273,437) |
Tax paid |
|
|
|
|
| (796,812) | (489,732) |
Net cash outflow from operating activities |
|
|
|
|
| (662,413) | (1,293,300) |
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Acquisition of businesses |
|
|
|
|
| (1,757,702) | (2,274,530) |
Purchase of property, plant and equipment |
|
|
|
|
| (766,304) | (521,691) |
Payment of deferred consideration |
|
|
|
|
| (905,159) | (1,057,940) |
Net proceeds from sale of property, plant and equipment |
|
|
|
|
| 354,849 | 404,817 |
Net cash outflow from investing activities |
|
|
|
|
| (3,074,316) | (3,449,344) |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Proceeds from borrowings |
|
|
|
|
| 4,016,347 | 5,945,727 |
Repayment of bank borrowings |
|
|
|
|
| - | (3,750,000) |
Capital element of finance lease payments |
|
|
|
|
| (1,042,197) | (648,707) |
Issue of shares |
|
|
|
|
| 155,996 | 4,672,828 |
Dividends paid |
|
|
|
|
| (1,092,472) | (533,825) |
Net cash inflow from financing activities |
|
|
|
|
| 2,037,674 | 5,686,023 |
|
|
|
|
|
|
|
|
Net (decrease) /increase in cash and cash equivalents |
|
|
|
|
| (1,699,055) | 943,379 |
Cash and cash equivalents at 1 January |
|
|
|
|
| (317,466) | (1,260,845) |
Cash and cash equivalents at 31 December* |
|
|
|
|
| (2,016,521) | (317,466) |
* cash and cash equivalents comprises cash at bank in hand of £6,543,749 (2015: £4,842,899) less bank overdraft of £8,560,270 (2015: £5,160,365).
Notes to the Final Results
Basis of preparation
The preliminary financial information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006, for the financial years ended 31 December 2016 and 31 December 2015, but has been derived from those accounts.
These financial statements have been prepared in accordance with the requirements of the AIM Rules, in accordance with International Financial Reporting Standards as adopted by the European Union ("IFRS"), the International Financial Reporting Interpretations Committee's ("IFRSIC") interpretations and with those parts of the Companies Act 2006 as applicable to companies reporting under IFRS, however, this announcement in itself does not contain sufficient information to comply with IFRS. The accounting policies used in preparation of this preliminary announcement have remained unchanged from those set out statutory accounts for the year ended 31 December 2015. They are also consistent with those in the full financial statements which have yet to be published.
Statutory accounts for 2015 have been delivered to the Registrar of Companies and those for the financial year ended 31 December 2016 will be delivered following the Company's annual general meeting. The auditors have reported on those accounts and their opinion was unqualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006.
Following a decision of the IFRS interpretations Committee in April 21016 in relation to IAS 32, the Group can no longer report cash balances on a net basis and so the Balance Sheet as at 31 December 2015 has been restated to show the cash and overdraft separately.
Segmental information
Management has determined the operating segments based on the operating reports reviewed by the Board of Directors that are used to assess both performance and strategic decisions. Management has identified that the Board of Directors is the chief operating decision maker in accordance with the requirements of IFRS 8 "Operating segments".
The Board of Directors considers the business to be split into three main types of business generating revenue; Access and Safety, Electrical Services and High Level Cleaning. There was no trade in the Training Solutions division.
All revenue originates in the UK.
|
|
|
|
|
|
| 2016 |
|
|
| Access | Electrical | High Level |
|
|
|
|
| and Safety | Services | Cleaning | Group | Total |
|
|
| £ | £ | £ | £ | £ |
Revenue |
|
|
|
|
|
|
|
Total revenue |
|
| 18,869,742 | 17,606,059 | 2,718,965 | - | 39,194,766 |
Total revenue from external customers |
|
| 18,869,742 | 17,606,059 | 2,718,965 | - | 39,194,766 |
|
|
|
|
|
|
|
|
Operating profit before adjusting items |
|
| 3,110,949 | 3,999,716 | 747,107 | (907) | 7,856,865 |
Restructuring costs |
|
| (235,288) | (188,141) | (68,883) | - | (492,312) |
Share options granted to Directors and employees |
|
| (1,887,400) | - | - | - | (1,887,400) |
Amortisation of intangible asset acquired |
|
| (486,733) | (12,500) | - | - | (499,233) |
Contingent payments in relation to acquisitions |
|
| (100,000) | (1,361,043) | (400,000) | - | (1,861,043) |
Segment operating profit |
|
| 401,528 | 2,438,032 | 278,224 | (907) | 3,116,877 |
Net finance cost |
|
| (92,244) | (60,597) | (3,344) | (346,293) | (502,478) |
Profit before taxation |
|
| 309,284 | 2,377,435 | 274,880 | (347,200) | 2,614,399 |
|
|
|
|
|
|
|
|
Other segmental items |
|
|
|
|
|
|
|
Segment assets |
|
| 13,156,447 | 9,066,829 | 389,410 | 20,716,182 | 43,328,868 |
Segment liabilities |
|
| (5,565,181) | (8,220,348) | (496,222) | (17,003,225) | (31,284,976) |
Capital expenditure |
|
| 752,623 | 1,033,252 | 56,591 | - | 1,842,466 |
Depreciation |
|
| 453,821 | 663,282 | 47,259 | - | 1,164,362 |
Segmental operating profit
The reconciliation of Adjusted EBITDA to statutory operating profit is shown below.
|
|
| Access | Electrical | High Level |
|
|
|
|
| and Safety | Services | Cleaning | Group | Total |
|
|
| £ | £ | £ | £ | £ |
Adjusted EBITDA |
|
| 3,564,770 | 4,662,998 | 794,366 | (907) | 9,021,227 |
Depreciation |
|
| (453,821) | (663,282) | (47,259) | - | (1,164,362) |
Operating profit before adjusting items |
|
| 3,110,949 | 3,999,716 | 747,107 | (907) | 7,856,865 |
Restructuring costs |
|
| (235,288) | (188,141) | (68,883) | - | (492,312) |
Share options granted to Directors and employees |
|
| (1,887,400) | - | - | - | (1,887,400) |
Amortisation of intangible asset acquired |
|
| (486,733) | (12,500) | - | - | (499,233) |
Contingent payments in relation to acquisitions |
|
| (100,000) | (1,361,043) | (400,000) | - | (1,861,043) |
Statutory operating profit |
|
| 401,528 | 2,438,032 | 278,224 | (907) | 3,116,877 |
|
|
|
|
|
|
| 2015 |
|
|
| Access | Electrical | High Level |
|
|
|
|
| and Safety | Services | Cleaning | Group | Total |
|
|
| £ | £ | £ | £ | £ |
Revenue |
|
|
|
|
|
|
|
Total revenue |
|
| 12,035,772 | 10,402,313 | 3,332,418 | - | 25,770,503 |
Total revenue from external customers |
|
| 12,035,772 | 10,402,313 | 3,332,418 | - | 25,770,503 |
|
|
|
|
|
|
|
|
Operating profit before adjusting items |
|
| 2,030,685 | 2,518,872 | 669,957 | 56,549 | 5,276,063 |
Restructuring costs |
|
| (114,030) | (115,127) | (13,792) | - | (242,949) |
IPO costs |
|
| (520,777) | - | - | - | (520,777) |
Head Office rebuild costs |
|
| 63,891 | - | - | - | 63,891 |
Share options granted to Directors and employees |
|
| (2,259,364) | - | - | - | (2,259,364) |
Amortisation of intangible asset acquired |
|
| (108,600) | - | - | - | (108,600) |
Contingent payments in relation to acquisitions |
|
| (123,333) | (335,064) | (490,000) | - | (948,397) |
Segment operating profit |
|
| (1,031,528) | 2,068,681 | 166,165 | 56,459 | 1,259,867 |
Net finance cost |
|
| - | - | - | (428,883) | (428,883) |
Profit before taxation |
|
| (1,031,528) | 2,068,681 | 166,165 | (372,334) | 830,984 |
|
|
|
|
|
|
|
|
Other segmental items |
|
|
|
|
|
|
|
Segment assets |
|
| 7,437,448 | 2,169,577 | 1,317,932 | 16,458,547 | 27,383,504 |
Segment liabilities |
|
| (4,431,872) | (2,391,487) | (1,655,540) | (9,983,716) | (18,462,615) |
Capital expenditure |
|
| 685,467 | 761,688 | 56,499 | - | 1,503,604 |
Depreciation |
|
| 427,771 | 422,671 | 48,447 | - | 898,889 |
Segmental operating profit
The reconciliation of Adjusted EBITDA to statutory operating profit is shown below.
|
|
| Access | Electrical | High Level |
|
|
|
|
| and Safety | Services | Cleaning | Group | Total |
|
|
| £ | £ | £ | £ | £ |
Adjusted EBITDA |
|
| 2,458,456 | 2,941,543 | 718,404 | 56,549 | 6,174,951 |
Depreciation |
|
| (427,771) | (422,671) | (48,447) | - | (898,889) |
Operating profit before adjusting items |
|
| 2,030,685 | 2,518,872 | 669,957 | 56,549 | 5,276,063 |
Restructuring costs |
|
| (114,030) | (115,127) | (13,792) | - | (242,949) |
IPO Costs |
|
| (520,777) | - | - | - | (520,777) |
Head Office rebuild costs |
|
| 63,891 | - | - | - | 63,891 |
Share options granted to Directors and employees |
|
| (2,259,364) | - | - | - | (2,259,364) |
Amortisation of intangible asset acquired |
|
| (108,600) | - | - | - | (108,600) |
Contingent payments in relation to acquisitions |
|
| (123,333) | (335,064) | (490,000) | - | (948,397) |
Statutory operating profit |
|
| (1,031,528) | 2,068,681 | 166,165 | 56,549 | 1,259,867 |
Earnings per share
The calculation of basic earnings per share for the year ended 31 December 2016 was based on the profit attributable to ordinary shareholders of £2,299,573 (year ended 31 December 2015: £489,103).
| 2016£ | 2015£ |
Profit for the year attributable to owners of the parent | 2,299,573 | 489,103 |
Weighted average number of ordinary shares in issue for the basic earnings per share | 88,101,562 | 85,920,559 |
Basic and diluted earnings per share (in pence per share) | 2.61 | 0.57 |
The calculation of adjusted earnings per share for the year ended 31 December 2016 was based on the profit before adjusting items of £6,721,419 (Year ended 31 December 2015: £4,187,699).
| 2016£ | 2015£ |
Adjusted earnings | 6,721,419 | 4,187,699 |
Weighted average number of shares | 88,101,562 | 85,920,559 |
Adjusted earnings per share (pence) | 7.63 | 4.87 |
Annual Report
The annual report will be mailed to shareholders and will be available in due course on our website www.ptsg.co.uk.
Annual General Meeting
The annual general meeting will be held at 13 Flemming Court, Whistler Drive, Castleford, WF10 5HW on Monday 19 June 2017 at 2.00pm.
ENDS