26 Sep 2013 07:00
SCISYS PLCINTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2013
SCISYS PLC, AIM stock code: SSY, ('SCISYS', the 'Group' or the 'Company') - the supplier of bespoke software systems and IT based solutions for its clients' core business processes is pleased to announce its Interim Results for the period ending 30 June 2013.
Financial Highlights
Six months to 30 June | |||
2013 Unaudited | 2012 Unaudited | Change | |
Revenue | £21.4m | £19.6m | Up 9% |
Professional fees | £18.0m | £17.9m | Up 1% |
Adjusted operating profit* | £1.3m | £1.3m | - |
Adjusted basic earnings per share | 3.6p | 3.1p | Up 16% |
Basic earnings per share | 2.1p | 2.4p | Down 13% |
Group net debt at 30 June 2013 | £2.1m | £0.8m | Up £1.3m |
Declared interim dividend | 0.40p | 0.40p | - |
*Adjusted operating profit is statutory operating profit before share based payments, exceptional
charges and amortisation of intangible assets arising on acquisitions
Operational Highlights
· Warrior armoured fighting vehicle contract signed with Lockheed Martin with work underway;
· BBC World Services and BBC News successfully rolled out and an order placed for BBC Scotland;
· GRACE Follow-On contract signed with Astrium in Space division;
· Further order for fitting SEAF™ on RNLI Shannon Class lifeboats won post successful pilot sea trials;
· Novel Kiosk Ingest Terminal "KIT" solution successfully delivered to WDR by Media & Broadcast division;
· Merlin Phase B contract won with Astrium for German national aerospace agency;
· Successful integration of MakaluMedia business acquired in October 2012.
Mike Love, Chairman of SCISYS, commenting on the results, said:
"The Group has produced a creditable first half set of results in the face of a market that remains stubbornly challenging, which is testament to the strength of our people and the years of embedded knowhow within SCISYS. The Group remains subject to the vagaries of public sector procurement and consequently we are not always in control of the timing of commencement of contracted projects which has caused slippage, though the Board has taken swift action to mitigate the impact of this and continues to monitor progress carefully.
Our cash position remains healthy and we continue to review possible acquisition targets. The order book remains within the Board's acceptable range and we maintain a healthy flow of pipeline prospects from both new and returning customers. With the newly created ESD division we believe SCISYS has a divisional structure that is better aligned to our customers' requirements and market opportunity. I remain confident of the value and expertise that SCISYS brings to its clients and thus our prospects for the future."
For further information please contact:
SCISYS PLC | ||
Mike Love | Chairman | Tel : +44 (0) 1249 466 466
|
David Jones | Chief Executive Officer | |
Chris Cheetham | Financial Director | |
Winningtons | Tom Cooper / Paul Vann | Tel : +44 (0) 797 1221972 E-mail : tom.cooper@winningtons.co.uk |
finnCap Limited
Corporate Finance
Corporate Broking |
Julian Blunt Henrik Persson Simon Starr |
Tel : +44 (0) 207 220 0500 |
About SCISYSEmploying more than 400 staff, SCISYS is a pan European leading developer of Information and Communications Technology services, e-Business and advanced technology solutions. The Group operates in a broad spectrum of market sectors including Media & Broadcast, Space, Government, Defence, Marine and Environment. Customers include the Environment Agency, the Ministry of Defence, Astrium, Arqiva, the European Space Agency, Eumetsat, BBC, RNLI, National Trust, Transport for London and Vodafone. The Group has UK offices in Chippenham, Bristol and Reading and German offices in Bochum, Darmstadt and Oberpfaffenhofen. More information is available at www.scisys.co.uk/www.scisys.de.Results Overview
SCISYS has produced a creditable set of results for the period.
During the six month period the divisions have had mixed fortunes with some solid performances and some less so.
Professional fees revenue for the first half of 2013 shows an increase over the same period in 2012 with adjusted EBITA of £1.3m being at the same level. Trading conditions remain tough in a stubbornly challenging macro-economic climate.
The recently acquired MakaluMedia business is performing in line with expectations and has now been fully integrated into the Group.
The Group's cash position remains healthy and, alongside investment into organic growth opportunities, acquisitions will remain a core tenet of corporate strategy.
In line with our strategy of continuous improvement across the business, the Board has undertaken a divisional reorganisation during the first half and, subsequently, in response to more recent contract deferrals, has carried out a restructuring of its cost base. These are explained further below.
Business Review
Enterprise Solutions & Defence (ESD)
This division has been created from the aggregation of the three former Government & Defence, Environment and Applications Management divisions in response to deferred procurement activity in the environment market.
The reorganisation supports the Board's strategy to ensure continuous improvement in Group efficiency. The aggregation of the three divisions results in a more flexible unit with the capacity to resource projects across key market facing sectors in a consolidated and cost effective way.
The ESD division had a profitable first half year with work on the Warrior armoured fighting vehicle upgrade contract continuing apace. An order has been received from the RNLI to equip two further lifeboats in its new Shannon Class following the successful launch of the pilot lifeboat. Seventeen out of an expected fifty lifeboat stations have already been identified to receive a Shannon class lifeboat. ESD has also secured recurring revenues from the renewal of several important support contracts during the period, including a £1.5m contract extension with Capgemini over a three year term.
SCISYS' proprietary commercial marine offering, MACSYS™, was presented to the market at major international exhibitions, receiving significant interest from customers and boat hardware suppliers.
Space
The Space division has performed solidly. Building on the success of previous missions, SCISYS was selected by Astrium Germany to supply on-board software for an initial four year period for the Gravity Recovery and Climate Experiment (GRACE) Follow-On mission, commissioned by NASA's Jet Propulsion Laboratory. SCISYS is a core member of the team working on the development of the future French-German satellite mission, MERLIN (Methane Remote Sensing Lidar Mission), for the German national aerospace agency. The MakaluMedia business acquired in October 2012 has been earnings enhancing as anticipated and is now fully integrated in the existing Space division.
Media & Broadcast
Divisional performance was impacted as sales opportunities were deferred by customers, with some sales opportunities, which were expected to be realised in 2013, are now moving into 2014 and beyond. This is likely to have an adverse impact on Media & Broadcast revenues and margins for 2013. The work under the BBC framework contract continues to go well. SCISYS has won an additional £1m contract to re-equip Radio Scotland's radio studios. The Division has developed a novel Kiosk Ingest Terminal (KIT) that allows journalists and cameramen to upload their video footage rapidly. Germany's largest public broadcaster, WDR, was the first recipient of this innovative technology. SCISYS has been nominated by a major private Asian broadcaster as preferred supplier for a new radio system for which trials are likely to start in late 2013.
Financial Review
Professional fees revenues increased by 1% to £18.0m (June 2012: £17.9m) whilst total revenues were up 9% to £21.4m (June 2012: £19.6m). Adjusted operating profit, before exceptional costs, share based payment charges and amortisation arising on 2012's acquisition of MakaluMedia, was maintained at £1.3m (June 2012: £1.3m). Adjusted basic earnings per share rose 16% to 3.6p (June 2012: 3.1p). The adjusted operating margin was 6% (June 2012: 6%). The statutory profit from operations was £0.9m (June 2012: £1.0m). The profit after tax for the period was £0.6m (June 2012: £0.7m) and the basic earnings per share were 2.1p (June 2012: 2.4p).
The share based payment charge shown on the face of the Income Statement reflects the costs of the Group's share incentive schemes. The charge does not affect the Group cash flow. The exceptional charges represent costs incurred in re-organising the Group's divisional structure to bring future operating costs into line with anticipated income.
At the end of the reporting period, the Group had bank deposits (comprising cash and cash equivalents less overdrafts) of £3.3m (June 2012: £2.9m). Unutilised working capital facilities totalled £3.4m (June 2012: £1.9m). Group debt excluding bank overdrafts at the period end was £5.4m (June 2012: £3.7m).
The resulting net debt was £2.1m (June 2012: £0.8m), predominantly reflecting the additional borrowings taken on to fund the MakaluMedia acquisition in October 2012.
The effective tax rate for the first half of 2013 was 18% (June 2012: 26%) which is lower than the standard rates in the Group's operating jurisdictions because SCISYS continues to benefit from the tax credit system for UK expenditure on Research & Development. The rate is expected to remain relatively low whilst successive governments continue to offer incentives for innovative R&D investment.
The half year accounts are presented on a basis consistent with policies to be adopted for the Annual Report & Accounts for the year ending 31 December 2013.
Dividend
The Board is declaring an interim dividend in line with 2012 of 0.4p per share, to be paid on 14 November 2013 to shareholders on the register as at 18 October 2013.
Outlook
As previously reported, the Group's order book had a solid start to the year. This drove performance, particularly within our ESD division, during the period under review. Since the half year end, Group performance has been more mixed, with some contract commencements slipping into 2014 and beyond. ESD activity has stabilised with some softness in the division's non-defence order book. Similarly, Media & Broadcast is seeing some slippage to 2014 in terms of the commencement of certain contracts. The Space division remains on track to deliver an improved performance over 2012.
Since the period end, the Board has undertaken some restructuring to align the Group's cost structure more closely with the current outlook. Management continues to monitor this carefully.
The order book at the end of July was £21.5m. Whilst this is lower than at the same point last year, this remains comfortably in line with the Board's acceptable range and we continue to maintain a healthy flow of pipeline prospects from new and returning customers. The Board remains confident as to the expertise and value that SCISYS brings to its clients and, thus, its prospects.
Mike Love
Chairman
26/9/13
Consolidated Income Statement
Unaudited Six months to 30 June 2013 £000 |
Unaudited Six months to 30 June 2012 £000 | Audited Year ended 31 December 2012 £000 | |
Revenue (note 2) | |||
Existing operations | 21,366 | 19,623 | 39,066 |
Acquisitions | - | - | 387 |
21,366 | 19,623 | 39,453 | |
Net operating costs | (20,497) | (18,585) | (37,213) |
Operating profit | 869 | 1,038 | 2,240 |
"Adjusted operating profit" being operating profit before share based payments, exceptional charges and amortisation arising on business combinations | 1,306 | 1,252 | 2,662 |
Share based payments | (17) | (25) | (49) |
Exceptional charges (note 3) | (284) | (189) | (328) |
Amortisation of intangible assets | (136) | - | (45) |
Operating profit | 869 | 1,038 | 2,240 |
Finance costs | (124) | (120) | (241) |
Finance income | 4 | 16 | 27 |
Profit before tax | 749 | 934 | 2,026 |
Tax charge (note 4) | (138) | (243) | (384) |
Profit for the period | 611 | 691 | 1,642 |
All profit for the period is attributable to equity holders of the parent | |||
Earnings per share (note 6) | |||
Basic | 2.1p | 2.4p | 5.7p |
Diluted | 2.0p | 2.3p | 5.4p |
Consolidated Statement of Comprehensive Income
Unaudited Six months to 30 June 2013 £000 |
Unaudited Six months to 30 June 2012 £000 | Audited Year ended 31 December 2012 £000 | |
Profit for the period | 611 | 691 | 1,642 |
Other comprehensive income/(expense) not recycling through the Income Statement | |||
Currency translation differences on foreign currency investments | 327 | (235) | (106) |
Total comprehensive income for the period attributable to equity holders of the parent |
938 |
456 |
1,536 |
Consolidated Statement of Changes in Equity
For the six months ended 30 June 2013 | |||||||||||
Share Capital | Share Premium | Merger Reserve | Capital Redemption Reserve | Translation Reserve | Retained Earnings | TOTAL | |||||
£000 | £000 | £000 | £000 | £000 | £000 | £000 | |||||
Balance as at 1 January 2013 | 7,265 | 130 | 943 | 83 | 1,112 | 8,406 | 17,939 | ||||
Total comprehensive income for the period | |||||||||||
Profit | - | - | - | - | - | 611 | 611 | ||||
Other comprehensive income | |||||||||||
Foreign currency translation | - | - | - | - | 327 | 16 | 343 | ||||
Total comprehensive income for the period | - | - | - | - | 327 | 627 | 954 | ||||
Transactions with owners, recorded directly in equity | |||||||||||
Contributions by and distributions to owners | |||||||||||
Purchase of treasury shares | - | - | - | - | - | (84) | (84) | ||||
Exercise of Employee Share Options | - | - | - | - | - | 39 | 39 | ||||
Share based payments | - | - | - | - | - | 17 | 17 | ||||
Total contributions by and distributions to owners | - |
- | - | - | - | (28) | (28) | ||||
Balance as at 30 June 2013 | 7,265 | 130 | 943 | 83 | 1,439 | 9,005 | 18,865 | ||||
Consolidated Statement of Changes in Equity (continued)
For the six months ended 30 June 2012 | |||||||||||
Share Capital | Share Premium | Merger Reserve | Capital Redemption Reserve | Translation Reserve | Retained Earnings | TOTAL | |||||
£000 | £000 | £000 | £000 | £000 | £000 | £000 | |||||
Balance as at 1 January 2012 | 7,265 | 130 | 943 | 83 | 1,218 | 7,047 | 16,686 | ||||
Total comprehensive income for the period | |||||||||||
Profit | - | - | - | - | - | 691 | 691 | ||||
Other comprehensive income | |||||||||||
Foreign currency translation | - | - | - | - | (235) | - | (235) | ||||
Total comprehensive income for the period | - | - | - | - | (235) | 691 | 456 | ||||
Transactions with owners, recorded directly in equity | |||||||||||
Contributions by and distributions to owners | |||||||||||
Exercise of Employee Share Options | - | - | - | - | - | 18 | 18 | ||||
Share based payments | - | - | - | - | - | 25 | 25 | ||||
Total contributions by and distributions to owners | - |
- | - | - | - | 43 | 43 | ||||
Balance as at 30 June 2012 | 7,265 | 130 | 943 | 83 | 983 | 7,781 | 17,185 | ||||
Consolidated Statement of Changes in Equity (continued)
For the year ended 31 December 2012 | |||||||||||
Share Capital | Share Premium | Merger Reserve | Capital Redemption Reserve | Translation Reserve | Retained Earnings | TOTAL | |||||
£000 | £000 | £000 | £000 | £000 | £000 | £000 | |||||
Balance as at 1 January 2012 | 7,265 | 130 | 943 | 83 | 1,218 | 7,047 | 16,686 | ||||
Total comprehensive income for the period | |||||||||||
Profit | - | - | - | - | - | 1,642 | 1,642 | ||||
Other comprehensive income | |||||||||||
Foreign currency translation | - | - | - | - | (106) | - | (106) | ||||
Total comprehensive income for the period | - | - | - | - | (106) | 1,642 | 1,536 | ||||
Transactions with owners, recorded directly in equity | |||||||||||
Contributions by and distributions to owners | |||||||||||
Dividends paid | - | - | - | - | - | (361) | (361) | ||||
Share based payments | - | - | - | - | - | 49 | 49 | ||||
Exercise of share options | - | - | - | - | - | 29 | 29 | ||||
Total contributions by and distributions to owners | - |
- | - | - | - | (283) | (283) | ||||
Balance as at 31 December 2012 | 7,265 | 130 | 943 | 83 | 1,112 | 8,406 | 17,939 | ||||
Consolidated Statement of Financial Position
Unaudited 30 June 2013 £000 |
Unaudited 30 June 2012 £000 |
Audited 31 December 2012 £000 | |
Non-current assets | |||
Property, plant and equipment | 9,471 | 9,171 | 9,252 |
Goodwill | 6,842 | 5,603 | 6,788 |
Other intangible assets | 413 | 222 | 574 |
Deferred tax assets | 222 | 198 | 18 |
16,948 | 15,194 | 16,632 | |
Current assets | |||
Inventories | 721 | 307 | 76 |
Trade and other receivables | 11,910 | 11,360 | 11,712 |
Income tax receivable | 707 | 670 | 471 |
Cash and cash equivalents | 3,299 | 4,208 | 7,463 |
16,637 | 16,545 | 19,722 | |
Total assets | 33,585 | 31,739 | 36,354 |
Equity | |||
Issued share capital | 7,265 | 7,265 | 7,265 |
Share premium | 130 | 130 | 130 |
Merger reserve | 943 | 943 | 943 |
Retained earnings | 9,005 | 7,781 | 8,406 |
Translation reserve | 1,439 | 983 | 1,112 |
Other reserves | 83 | 83 | 83 |
Equity attributable to equity holders of the parent | 18,865 | 17,185 | 17,939 |
Current liabilities | |||
Trade and other payables | 8,047 | 8,364 | 11,178 |
Bank overdraft and loans | 626 | 1,518 | 1,320 |
Income tax payable | 839 | 742 | 859 |
Deferred income | 74 | 211 | 47 |
9,586 | 10,835 | 13,404 | |
Non-current liabilities | |||
Bank loans | 4,741 | 3,484 | 4,902 |
Deferred tax | 393 | 235 | 109 |
5,134 | 3,719 | 5,011 | |
Total liabilities | 14,720 | 14,554 | 18,415 |
Total equity and liabilities | 33,585 | 31,739 | 36,354 |
Consolidated Statement of Cash Flows
Unaudited Six months to 30 June 2013 £000 | Unaudited Six months to 30 June 2012 £000 | Audited Year ended 31 December 2012 £000 | |
Cash flow from operating activities | |||
Profit before tax | 749 | 934 | 2,026 |
Net finance costs | 120 | 104 | 214 |
Operating profit | 869 | 1,038 | 2,240 |
(Increase)/decrease in trade receivables | (799) | (410) | 510 |
(Decrease)/increase in trade payables | (3,147) | (1,045) | 1,392 |
Depreciation and amortisation | 610 | 419 | 919 |
Share based payments | 17 | 25 | 49 |
Tax (paid)/refunded | (332) | 26 | (157) |
Net cash flow from operating activities | (2,782) | 53 | 4,953 |
Cash flow from investing activities | |||
Acquisition of subsidiary | - | - | (2,366) |
Cash acquired with subsidiary | - | - | 414 |
Proceeds from disposal of property, plant and equipment |
- |
- | 1 |
Purchase of property, plant and equipment | (508) | (550) | (1,117) |
Exercise of Share Options | 39 | 18 | 29 |
Interest received | 4 | 16 | 27 |
Net cash flow from investing activities | (465) | (516) | (3,012) |
Cash flows from financing activities | |||
Dividends paid | (2) | - | (361) |
Interest paid | (124) | (120) | (241) |
Investment in own shares | (84) | - | - |
New loans received | - | - | 1,995 |
Debt repayments | (256) | (79) | (239) |
Net cash flow from financing activities | (466) | (199) | 1,154 |
Net (decrease)/increase in cash and cash equivalents | (3,713) | (662) | 3,095 |
Cash and cash equivalents at the start of the period | 6,740 |
3,729 | 3,729 |
Exchange and other movements | 272 | (211) | (84) |
Cash and cash equivalents at the end of the period |
3,299 |
2,856 |
6,740 |
Cash and cash equivalent deposits held in non-UK based banks | 3,181 |
4,208 |
7,463 |
Net cash deposits/(overdraft) with UK based banks
| 118
| (1,352)
| (723)
|
3,299 | 2,856 | 6,740 | |
Notes to the Unaudited Interim Report
1. | Basis of preparation of Interim Financial Information & Statement of Compliance
|
SCISYS PLC (the "Company") is a UK company incorporated in England & Wales. The consolidated half year financial statements of the Company for the six months to 30 June 2013 comprise the Company and its subsidiaries (together referred to as the "Group"). The Group reports its financial results in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").
This interim results announcement is prepared in accordance with the IFRS accounting policies expected to be applied by the Group at 31 December 2013. These policies are unchanged from those set out by the Group in its consolidated financial statements for the year ended 31 December 2012 and available on the Group's website at www.scisys.co.uk. As permitted, this interim report has been prepared in accordance with the AIM rules and not in accordance with IAS 34 'Interim Financial Reporting' and is therefore not fully compliant with IFRS. The standards & interpretations that have been endorsed by the EU during 2013 include IFRS13 Fair Value Measurement, which is not expected to have a significant impact on the Group.
The interim financial information for the six months ended 30 June 2013 is unaudited and does not include all of the information required to constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. It should therefore be read in conjunction with the audited financial statements for the year ended 31 December 2012. These published accounts have been reported on by the Group's auditors and have been delivered to the Registrar of Companies. The report of the auditors was (1) unqualified; (2) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (3) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The preparation of these consolidated half year financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these consolidated half year financial statements, the significant judgements made by management in applying the Group's accounting policies and the key areas of estimation were the same as those that applied to the consolidated financial statements for the year ended 31 December 2012.
The Interim Report was approved by the Directors on 25 September 2013. |
2. | Segmental analysis
| ||||
| The management structure and reporting of financial information to the chief operating decision maker (the Board) is the basis used to define operating segments. | ||||
| |||||
| The Group provides IT services to large corporations and public sector organisations through the following three divisions: Space Enterprise Solutions & Defence (ESD) Media & Broadcast (M&B)
Divisional results, assets and liabilities represent items directly attributable to a division. Unallocated expenses comprise central overheads and corporate expenses. Assets and liabilities which are allocated to operating divisions comprise trade receivables, amounts recoverable on contracts, inventories and payments received on account.
The Group's operating divisions were reorganised during the period. Previously reported comparative segmental information presented below has been re-analysed to be consistent with the current structure. | ||||
Information about reportable segments | |||||
External revenues | Space | ESD | M&B | Total | |
£000 | £000 | £000 | £000 | ||
6 months ended 30 June 2013 | |||||
Professional fees revenue | 7,702 | 6,501 | 3,770 | 17,974 | |
Other revenue | 1,972 | 1,241 | 138 | 3,352 | |
External revenue for reportable segments | 9,674 | 7,742 | 3,909 | 21,326 | |
Other external revenue | 40 | ||||
Consolidated revenue | 21,366 | ||||
6 months ended 30 June 2012 | |||||
Professional fees revenue | 6,981 | 6,618 | 4,283 | 17,882 | |
Other revenue | 197 | 719 | 517 | 1,433 | |
External revenue for reportable segments | 7,178 | 7,337 | 4,800 | 19,315 | |
Other external revenue | 308 | ||||
Consolidated revenue | 19,623 | ||||
Year ended 31 December 2012 | |||||
Professional fees revenue | 14,842 | 13,088 | 7,651 | 35,581 | |
Other revenue | 1,197 | 1,874 | 733 | 3,804 | |
External revenue for reportable segments | 16,039 | 14,962 | 8,384 | 39,385 | |
Other external revenue | 68 | ||||
Consolidated revenue | 39,453 | ||||
Information about reportable segments (continued) | |||||
Profit before tax | Space | ESD | M&B | Total | |
£000 | £000 | £000 | £000 | ||
6 months ended 30 June 2013 | |||||
Reportable segment contribution | 1,940 | 2,434 | 1,163 | 5,537 | |
Other contribution | (242) | - | (151) | (393) | |
Attributable overheads | - | (390) | - | (390) | |
Contribution | 1,698 | 2,044 | 1,012 | 4,754 | |
Central overheads | (3,749) | ||||
EBITA | 1,005 | ||||
Amortisation of intangible assets arising on business combinations | (136) | ||||
Finance costs | (124) | ||||
Finance income | 4 | ||||
Profit before tax | 749 | ||||
6 months ended 30 June 2012 | |||||
Reportable segment contribution | 1,166 | 1,858 | 1,835 | 4,859 | |
Other contribution | (64) | - | 168 | 104 | |
Attributable overheads | - | (429) | - | (429) | |
Contribution | 1,102 | 1,429 | 2,003 | 4,534 | |
Central overheads | (3,496) | ||||
EBITA | 1,038 | ||||
Finance costs | (120) | ||||
Finance income | 16 | ||||
Profit before tax | 934 | ||||
Year ended 31 December 2012 | |||||
Reportable segment contribution | 3,119 | 5,691 | 2,777 | 10,242 | |
Other contribution | (112) | - | 203 | 91 | |
Attributable overheads | - | (824) | - | (824) | |
Contribution | 3,007 | 3,522 | 2,980 | 9,509 | |
Central overheads | (7,224) | ||||
EBITA | 2,285 | ||||
Amortisation of intangible assets arising on business combinations | (45) | ||||
Finance costs | (241) | ||||
Finance income | 27 | ||||
Profit before tax | 2,026 | ||||
Information about reportable segments (continued) | |||||
Group assets | Space | ESD | M&B | Total | |
£000 | £000 | £000 | £000 | ||
As at 30 June 2013 | |||||
Reportable segment - non-current assets | 3,617 | 49 | 3,380 | 7,046 | |
Reportable segment - current assets | 5,534 | 3,916 | 1,462 | 10,912 | |
9,151 | 3,965 | 4,842 | 17,958 | ||
Other - non-current assets | 9,901 | ||||
Other - current assets | 5,726 | ||||
Total assets | 33,585 | ||||
As at 30 June 2012 | |||||
Reportable segment - non-current assets | 2,223 | 107 | 3,380 | 5,710 | |
Reportable segment - current assets | 4,366 | 3,896 | 2,250 | 10,512 | |
6,589 | 4,003 | 5,630 | 16,222 | ||
Other - non-current assets | 9,484 | ||||
Other - current assets | 6,033 | ||||
Total assets | 31,739 | ||||
As at 31 December 2012 | |||||
Reportable segment - non-current assets | 3,684 | 74 | 3,380 | 7,138 | |
Reportable segment - current assets | 5,191 | 4,307 | 1,474 | 10,972 | |
8,875 | 4,381 | 4,854 | 18,110 | ||
Other - non-current assets | 9,494 | ||||
Other - current assets | 8,795 | ||||
Total assets | 36,399 | ||||
Information about reportable segments (continued) | |||||
Group liabilities | Space | ESD | M&B | Total | |
£000 | £000 | £000 | £000 | ||
As at 30 June 2013 | |||||
Reportable segment - current liabilities | 1,278 | 780 | 171 | 2,228 | |
Other - non-current liabilities | 5,134 | ||||
Other - current liabilities | 7,358 | ||||
Total liabilities | 14,720 | ||||
As at 30 June 2012 | |||||
Reportable segment - current liabilities | 995 | 955 | 52 | 2,002 | |
Other - non-current liabilities | 3,719 | ||||
Other - current liabilities | 8,833 | ||||
Total liabilities | 14,554 | ||||
As at 31 December 2012 | |||||
Reportable segment - current liabilities | 2,133 | 1,238 | 121 | 3,492 | |
Other - non-current liabilities | 5,011 | ||||
Other - current liabilities | 9,957 | ||||
Total liabilities | 18,460 | ||||
Geographical split | UK | Rest of Europe | Other | Total | |
£000 | £000 | £000 | £000 | ||
6 months ended 30 June 2013 | |||||
Revenue from external customers by location of customers | 10,528 | 10,544 | 293 | 21,366 | |
As at 30 June 2013 | |||||
Non-current assets: | |||||
Intangible assets | 49 | 7,205 | - | 7,254 | |
Tangible assets | 6,199 | 3,272 | - | 9,471 | |
Deferred tax assets | - | 222 | - | 222 | |
6 months ended 30 June 2012 | |||||
Revenue from external customers by location of customers | 10,124 | 9,259 | 240 | 19,623 | |
As at 30 June 2012 | |||||
Non-current assets: | |||||
Intangible assets | 107 | 5,178 | - | 5,825 | |
Tangible assets | 6,319 | 2,852 | - | 9,171 | |
Deferred tax assets | 180 | 18 | - | 198 | |
Year ended 31 December 2012 | |||||
Revenue from external customers by location of customers | 20,801 | 18,151 | 501 | 39,453 | |
As at 31 December 2012 | |||||
Non-current assets: | |||||
Intangible assets | 74 | 7,288 | - | 7,362 | |
Tangible assets | 6,270 | 2,982 | - | 9,252 | |
Deferred tax assets | - | 18 | - | 18 | |
3. | Exceptional charges | |||||||
| Unaudited Six months to 30 June 2013 £000 | Unaudited Six months to 30 June 2012 £000 | Audited Year ended 31 December 2012 £000 | |||||
| ||||||||
| Restructuring costs | 284 | 189 | 218 | ||||
| Acquisition costs
| -
| -
| 110
| ||||
| 284 | 189 | 328 | |||||
|
Restructuring costs comprise severance payments to employees who left the Group on grounds of redundancy under a programme to align operating costs with current and projected revenues. | |||||||
4. | Taxation | |||||||
| Unaudited Six months to 30 June 2013 £000 | Unaudited Six months to 30 June 2012 £000 | Audited Year ended 31 December 2012 £000 | |||||
| ||||||||
| Current tax (credit)/charge | (139) | 291 | 480 | ||||
| Deferred tax charge/(credit)
| 277
| (48)
| (96)
| ||||
| 138 | 243 | 384 | |||||
|
The charge for taxation for the six months ended 30 June 2013 reflects an effective rate for the period consistent with the anticipated rate for the full year.
| |||||||
5. | Impairment of goodwill
| |||||||
Goodwill is tested for impairment every half year based on management's estimation of the value in use of the cash generating units (CGUs) to which the goodwill has been allocated. The value in use calculation is dependent upon management's estimate of future cashflows expected to arise from the CGU and a suitable discount rate.
Management has considered the estimates of cashflows and applicable discount rates and has concluded that no impairment is necessary at 30 June 2013.
| ||||||||
6. | Earnings per share
| |||||||
The calculation of the Group basic and diluted earnings per ordinary share is based on the following data: | ||||||||
|
Unaudited Six months to 30 June 2013 £000 |
Unaudited Six months to 30 June 2012 £000 | Audited Year ended 31 December 2012 £000 | |||||
| ||||||||
| Profit attributable to shareholders | 611 | 691 | 1,642 | ||||
| Number of shares | '000 | '000 | '000 | ||||
| Basic weighted average number of shares | 29,014 | 28,950 |
28,979 | ||||
| Diluted weighted average number of shares | 30,757 |
30,623 | 30,675 | ||||
| ||||||||
| The weighted average number of shares for the calculation of basic earnings per share excludes own shares held in treasury.
The weighted average number of shares for the calculation of diluted earnings per share includes own shares held in treasury together with EMI, CSOP and unapproved share options outstanding during the period. | |||||||
7. | Adjusted earnings per share | |||||||
| Unaudited Six months to 30 June 2013 £000 | Unaudited Six months to 30 June 2012 £000 | Audited Year ended 31 December 2012 £000 | |||||
| Basic | 3.6p | 3.1p | 7.1p | ||||
| Diluted | 3.4p | 3.0p | 6.8p | ||||
| ||||||||
| In order to present a measure of earnings per share which is more representative of the Group's underlying operating performance, earnings are adjusted to be net of the costs shown in the highlighted box on the face of the Income Statement.
The calculation of the Group adjusted basic and diluted earnings per ordinary share is based on the number of shares in Note 6 and the following earnings data: | |||||||
| Unaudited Six months to 30 June 2013 £000 | Unaudited Six months to 30 June 2012 £000 | Audited Year ended 31 December 2012 £000 | |||||
| ||||||||
| Profit attributable to shareholders | 611 | 691 | 1,642 | ||||
| ||||||||
| Adjusted for: | |||||||
| Share based payments | 17 | 25 | 49 | ||||
| Exceptional charges (note 3) | 284 | 189 | 328 | ||||
| Amortisation of intangible assets | 136 | - | 45 | ||||
| ||||||||
| Adjusted earnings | 1,048 | 905 | 2,064 | ||||
| ||||||||
| The weighted average number of shares for the calculation of basic earnings per share excludes own shares held in treasury.
The weighted average number of shares for the calculation of diluted earnings per share includes own shares held in treasury together with EMI, CSOP and unapproved share options outstanding during the period.
| |||||||
8. | Dividends | |||||||
|
For year ending 31 December 2012, the Company paid an interim dividend of 0.4 pence per share in November 2012 and a final dividend of 0.92 pence per share in July 2013. The Board is recommending payment of an interim dividend for 2013 of 0.4 p per share, to be paid on 14 November 2013 to shareholders on the register as at 18 October 2013.
| |||||||
Interim Report
The Interim Report will be posted to shareholders shortly and for those shareholders who have elected to receive communications electronically it will be available to view on the SCISYS website at www.scisys.co.uk. Copies will also be available at SCISYS PLC's Registered Office at Methuen Park, Chippenham, Wiltshire, SN14 0GB. | ||||||||