26 Sep 2012 07:00
SCISYS PLCINTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2012
SCISYS PLC, AIM stock code: SSY, ('SCISYS' 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 2012.
HIGHLIGHTS
Financial Highlights
·; Revenue £19.6m (June 2011: £22.0m)
·; Professional fees £17.9m (June 2011: £18.7m)
·; Adjusted operating profit up to £1.3m (June 2011: £1.2m)
·; Adjusted basic earnings per share up 19% to 3.1p (June 2011: 2.6p)
·; Basic earnings per share up 9% to 2.4p (June 2011: 2.2p)
·; Group net debt at 30 June 2012 of £0.8m (30 June 2011: £2.4m)
·; Declared interim dividend up 11% to 0.4p per share (2011: 0.36p)
Operational Highlights
·; Continued improvement in margins in core professional fees
·; Continued strong performance from Government & Defence and Media Broadcast divisions
·; Reduced revenues due to adverse foreign exchange translations and lower hardware sales Encouraging levels of order intake: July 2012 order book at £25.3m up 8% on July 2011
·; First new tenant secured at SCISYS owned Methuen Park, Chippenham, building
Mike Love, Chairman of SCISYS, commenting on the results, said:
"Following a stronger than anticipated first half of the current financial year we are now expecting a more balanced second half performance. We are particularly encouraged by the continued improvements in margins in our core professional fees; this is the key metric which we measure our business by. With a healthy order book and pipeline we look well set to deliver further progress in the second half of 2012."
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 | Tel : +44 (0) 797 1221972 E-mail : tom.cooper@winningtons.co.uk |
finnCap Limited
Corporate Finance
Corporate Broking |
Marc Young Henrik Persson
Simon Starr |
Tel : +44 (0) 207 220 0500 |
Chairman's Statement
Overview
In March, at the announcement of our 2011 Preliminary results, I noted a slower start to trading in 2012 than in the same period in 2011 but anticipated a stronger second half to the year. I am now particularly pleased to be able to announce that, as a result of earlier deliveries, operating efficiencies and the pro-active management of our cost base, SCISYS has delivered a much better set of half year results than expected and trading for the full year is now projected to be more balanced. We opened the year with a solid order book and our order intake for 2012 continues to be encouraging.
Key Financials
The drop in top line revenue of 11% compared to the same period in 2011 is more reflective of timing differences than the underlying activity levels within the business. Our results for the first half of 2011 were distorted by some accelerated public sector spending ahead of the Government clamp down and the implementation of austerity measures. We have experienced the reverse pattern this year with a number of key customers deferring spending decisions pending conclusion of the London Olympic Games.
More detailed analysis shows that the revenue drop is primarily due to a reduction in low margin pass through revenues and hardware sales (£1.7m in H1 2012; £3.3m in H1 2011). The 4% drop in professional fees is substantially accounted for by the differences in foreign exchange rates: a major element of our professional fees is earned in Euros. With the Pound strengthening against the Euro, the translation of this Euro-denominated income has resulted in lower revenues when expressed in Sterling.
Against this back cloth the 8% rise in adjusted operating profit reflects solid progress on our key objective of positioning the business to deliver margins consistently in excess of 7%. SCISYS Deutschland delivered a particularly strong first half performance that contributed heavily to the increase in adjusted earnings per share of 19%.
SCISYS remains cash generative with minimal net debt, despite having borrowed to part-fund the £5.0m purchase of our Chippenham headquarters in May 2011. The Company granted a 10 year lease on part of its surplus office space in Chippenham in February, which will generate income in line with market rents. There is current interest in other available space which potentially will aid the Company in its drive to improve net margins.
Operations
During the six month period SCISYS has made solid but steady progress across all fronts including some good contract wins and a number of key deliveries. Examples include:
Within our Media & Broadcast division the Icelandic national broadcaster RÙV in Reykjavik placed an order for the extension of its existing audio-archive system. The Division also received an order from Sharjah Media Corporation for an archive-extension to its dira!® radio system. The partnership between the BBC and SCISYS reached another major milestone with the final acceptance and successful Onair operation in total of eight new dira!®-workgroups and the combination of five more workgroups into one single homogenous dira!® environment in London to broadcast BBC World Service and BBC News. Germany's largest public broadcaster, WDR, has procured a dira!® enterprise license to run all its networks on dira!® Content Management, and an additional network at Norddeutscher Rundfunk (NDR, based in Hamburg) has gone live using dira!®.
Our Government & Defence division has started work on the Warrior replacement programme. Additionally and supported by our Space division, it has been awarded a contract to support the delivery of a major element of the UK MOD's CubeSat Research Programme. CubeSat is a type of miniaturised satellite, currently developed for space research that typically uses commercial off-the-shelf electronic components. CubeSats represent a disruptive technology for operational users who require rapid, low cost, short duration deployment of sensing and communications capability in Low Earth Orbit. Our project with RNLI, which is being run through our Government & Defence division, has successfully reached a significant milestone with the final sea trials being undertaken for RNLI's new design of boat known as the Shannon Class. Our SEAF™ product which is being used on the Shannon boat was also demonstrated and well received at the SeaWorks exhibition in Southampton in June.
In our Space division, as part of the European Space Agency's challenge-style innovation programme called STARTIGER-SEEKER, we completed a ground-breaking demonstration of an autonomous "Mars Rover" navigation system in the Atacama Desert, Chile, using a unique technique which offers considerable promise for both space and terrestrial unmanned vehicles of the future. With new contract wins, the Space division has also gained a foothold in the German Heinrich Hertz (H2Sat) mission on future space based communication and in the European EGNOS programme which supplements existing satellite navigation services.
In January our Environment division, working on behalf of the Coal Authority, delivered the first phase of an innovative, spatially-enabled corporate business information system known as Inferis. Inferis provides the Coal Authority for the first time an enterprise-wide, spatially-enabled solution that facilitates smarter working via corporate data sharing and service re-use.
Our Applications Management division (previously Application Support) was successful in extending or renewing a number of support contracts during the period. It also won a long term contract with a new customer - the National Trust.
Structure
Ulrich Reimers resigned as a Director at the AGM in May. Investors were given advance notice of this move in the 2011 Annual Report.
Our other non-executive Director, Klaus Meng, has now taken up an executive Director role within the Group specifically to oversee our acquisitions strategy as well as taking responsibility as Chairman for governance and corporate responsibility at our SCISYS Deutschland GmbH subsidiary. This move in part reflects the Company's pro-active drive to use the strength of its balance sheet to accelerate growth through acquisition.
The Company is actively seeking a suitable replacement for Prof. Reimers and we hope to make an announcement of an appointment by the end of the year. There have been no other changes to Directors or senior management positions within the Group. Continuity of leadership from within forms a strategic element in the succession planning for the Group.
The formal launch of our new branding at the beginning of June was another large step on being recognised as a tightly integrated pan-European IT solutions group. We are also currently undertaking several internal projects to align and improve the project reporting systems across all parts of the Group which should deliver further operational benefit in 2013.
Dividend
The Directors indicated at the AGM in May 2012 that the Board expected to maintain its progressive dividend policy at the interim stage, subject to the continued strength of trading and strong cash generation. I can now confirm that an interim dividend of 0.4p per share, representing an increase of 11%, will be paid on 14 November 2012 to shareholders on the register as at 19 October 2012. The shares are expected to go ex-dividend on 17 October 2012.
Outlook
Our trading outlook remains positive and our first half year performance provides comfort that we will meet current market expectations for the full year. Our order book at the end of July was £25.3m, an increase of 8% on the position in July 2011. The fluctuating Euro/Sterling exchange rate represents a potential concern as a large part of our revenues are earned in Euro. Consequently we have implemented currency hedging arrangements that will protect our Euro earnings and cash deposits from any further deterioration in the €/£ exchange rate this year. Our strategy continues to be that of targeting to grow professional fees revenues organically year on year as well as achieving operational improvements and efficiencies to deliver an adjusted operating margin target of at least 7% by the end of 2013. The Board is continuing its search for appropriate acquisition opportunities to accelerate growth over the short term.
Mike Love
Chairman
Financial Director's Statement
I am pleased to report that SCISYS made further progress towards achieving its corporate objectives with growth in adjusted operating profit and improved operating margins. The total revenue for the Group was £19.6m (June 2011: £22.0m). Adjusted operating profit, before share based payment charges and exceptional costs, was £1.3m (June 2011: £1.2m) and adjusted basic earnings per share were 3.1p (June 2011: 2.6p). The adjusted operating margin was 6.4% (2011: 5.5%). The statutory profit from operations was £1.0m (June 2011: £1.1m). The profit before tax for the period was £0.9m (June 2011: £1.1m) and the basic earnings per share were 2.4p (June 2011: 2.2p).
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 restructuring costs incurred in aligning future operating costs with anticipated income.
At the end of the reporting period, the Group had bank deposits (comprising cash and cash equivalents less overdrafts) of £2.9m (June 2011: £2.5m). Unutilised working capital facilities totalled £1.9m (June 2011: £2.9m). Group debt excluding bank overdrafts at the period end was £3.7m (June 2011: £4.9m).
The resulting liquidity position was net debt of £0.8m (June 2011: £2.4m). Sterling strengthened against the Euro during the half year to June 2012 which reduced the reported value of Euro cash deposits held in Germany.
SCISYS continues to benefit from the tax credit system for UK expenditure on Research & Development to the extent that the UK Group companies should be sheltered from paying corporation tax for at least the next few years. Late in 2011 SCISYS chose to surrender tax losses that arose under the UK R&D tax credit regime for both 2010 and 2011 in return for a cash rebate from HMRC. This resulted in an anomalously low reported effective tax rate for the full year in 2011 of 11% whereas the rate for the first half year, without accounting for a rebate, had been high at 38%. The effective tax rate of 26% reflected for the first half of 2012 is expected to be more representative of an ongoing rate.
The half year accounts are presented on a basis consistent with policies to be adopted for the Annual Report and Accounts for the year ended 31 December 2012.
Consolidated Income Statement
Unaudited Six months to 30 June 2012 £000 | Unaudited Six months to 30 June 2011 £000 | Audited Year ended 31 December 2011 £000 | |
Revenue (note 2) | 19,623 | 22,005 | 42,276 |
Net operating costs | (18,585) | (20,903) | (40,112) |
Operating profit | 1,038 | 1,102 | 2,164 |
"Adjusted operating profit" being operating profit before share based payments and exceptional charges | 1,252 | 1,217 | 2,365 |
Share based payments | (25) | (55) | (113) |
Exceptional charges (note 3) | (189) | (60) | (88) |
Operating profit | 1,038 | 1,102 | 2,164 |
Finance costs | (120) | (62) | (196) |
Finance income | 16 | 12 | 38 |
Profit before tax | 934 | 1,052 | 2,006 |
Tax charge (note 4) | (243) | (402) | (249) |
Profit for the period | 691 | 650 | 1,757 |
All profit for the period is attributable to equity holders of the parent | |||
Earnings per share (note 6) | |||
Basic | 2.4p | 2.2p | 6.1p |
Diluted | 2.3p | 2.1p | 5.8p |
Consolidated Statement of Comprehensive Income
Unaudited Six months to 30 June 2012 £000 | Unaudited Six months to 30 June 2011 £000 | Audited Year ended 31 December 2011 £000 | |
Profit for the period | 691 | 650 | 1,757 |
Other comprehensive (expense)/income | |||
Currency translation differences on foreign currency investments | (235) | 289 |
(125) |
Total comprehensive income for the period attributable to equity holders of the parent |
456 |
939 |
1,632 |
Consolidated Statement of changes in Equity
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 six months ended 30 June 2011 | |||||||||||
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 2011 | 7,265 | 130 | 943 | 83 | 1,343 | 5,475 | 15,239 | ||||
Total comprehensive income for the period | |||||||||||
Profit | - | - | - | - | - | 650 | 650 | ||||
Other comprehensive income | |||||||||||
Foreign currency translation | - | - | - | - | 289 | - | 289 | ||||
Total comprehensive income for the period | - | - | - | - | 289 | 650 | 940 | ||||
Transactions with owners, recorded directly in equity | |||||||||||
Contributions by and distributions to owners | |||||||||||
Dividends paid | - | - | - | - | - | (222) | (222) | ||||
Share based payments | - | - | - | - | - | 55 | 55 | ||||
Total contributions by and distributions to owners | - |
- | - | - | - | (167) | (167) | ||||
Balance as at 30 June 2011 | 7,265 | 130 | 943 | 83 | 1,632 | 5,958 | 16,011 | ||||
Consolidated Statement of changes in Equity (continued)
For the year ended 31 December 2011 | |||||||||||
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 2011 | 7,265 | 130 | 943 | 83 | 1,343 | 5,475 | 15,239 | ||||
Total comprehensive income for the period | |||||||||||
Profit | - | - | - | - | - | 1,757 | 1,757 | ||||
Other comprehensive income | |||||||||||
Foreign currency translation | - | - | - | - | (125) | - | (125) | ||||
Total comprehensive income for the period | - | - | - | - | (125) | 1,757 | 1,632 | ||||
Transactions with owners, recorded directly in equity | |||||||||||
Contributions by and distributions to owners | |||||||||||
Dividends paid | - | - | - | - | - | (326) | (326) | ||||
Share based payments | - | - | - | - | - | 113 | 113 | ||||
Investment in own shares (EST) | - | - | - | - | - | (33) | (33) | ||||
Closure of EST | - | - | - | - | - | 61 | 61 | ||||
Total contributions by and distributions to owners | - |
- | - | - | - | (185) | (185) | ||||
Balance as at 31 December 2011 | 7,265 | 130 | 943 | 83 | 1,218 | 7,047 | 16,686 | ||||
Consolidated Statement of Financial Position
Unaudited 30 June 2012 £000 |
Unaudited 30 June 2011 £000 |
Audited 31 December 2011 £000 | |
Non-current assets | |||
Property, plant and equipment | 9,171 | 9,293 | 9,089 |
Goodwill | 5,603 | 5,603 | 5,603 |
Other intangible assets | 222 | 186 | 274 |
Deferred tax assets | 198 | 15 | 16 |
15,194 | 15,097 | 14,982 | |
Current assets | |||
Inventories | 307 | 854 | 331 |
Trade and other receivables | 11,360 | 12,890 | 10,927 |
Income tax receivable | 670 | - | 788 |
Cash and cash equivalents | 4,208 | 2,869 | 5,211 |
16,545 | 16,613 | 17,257 | |
Total assets | 31,739 | 31,710 | 32,239 |
Equity | |||
Issued share capital | 7,265 | 7,265 | 7,265 |
Share premium | 130 | 130 | 130 |
Retained earnings | 7,781 | 5,958 | 7,047 |
Merger reserve | 943 | 943 | 943 |
Translation reserve | 983 | 1,632 | 1,218 |
Other reserves | 83 | 83 | 83 |
Equity attributable to equity holders of the parent |
17,185 |
16,011 | 16,686 |
Current liabilities | |||
Trade and other payables | 8,364 | 9,504 | 9,577 |
Bank overdraft and loans | 1,518 | 2,384 | 1,642 |
Income tax payable | 742 | 400 | 580 |
Deferred income | 211 | 279 | 45 |
10,835 | 12,567 | 11,844 | |
Non-current liabilities | |||
Bank loans | 3,484 | 2,859 | 3,602 |
Deferred tax | 235 | 273 | 107 |
3,719 | 3,132 | 3,709 | |
Total liabilities | 14,554 | 15,699 | 15,553 |
Total equity and liabilities | 31,739 | 31,710 | 32,239 |
Consolidated Statement of Cash Flows
Unaudited Six months to 30 June 2012 £000 | Unaudited Six months to 30 June 2011 £000 | Audited Year ended 31 December 2011 £000 | |
Cash flow from operating activities | |||
Profit before tax | 934 | 1,052 | 2,006 |
Net finance costs | 104 | 50 | 158 |
Operating profit | 1,038 | 1,102 | 2,164 |
Increase in trade receivables | (410) | (3,685) | (1,197) |
(Decrease)/increase in trade payables | (1,045) | 1,061 | 895 |
Depreciation and amortisation | 419 | 338 | 769 |
Share based payments | 25 | 55 | 113 |
Tax refund/(paid) | 26 | (429) | (951) |
Net cash flow from operating activities | 53 | (1,558) | 1,793 |
Cash flow from investing activities | |||
Proceeds from disposal of property, plant and equipment |
- |
7 | 67 |
Purchase of property, plant and equipment | (550) | (5,600) | (6,155) |
Closure of EST | - | - | 61 |
Exercise of Share Options | 18 | - | - |
Interest received | 16 | 12 | 38 |
Net cash flow from investing activities | (516) | (5,581) | (5,989) |
Cash flows from financing activities | |||
Dividends paid | - | (222) | (326) |
Interest paid | (120) | (62) | (196) |
Investment in own shares | - | - | (33) |
New loans received | - | 3,975 | 4,475 |
Debt repayments | (79) | (35) | (1,603) |
Net cash flow from financing activities | (199) | 3,656 | 2,317 |
Net decrease in cash and cash equivalents | (662) | (3,483) | (1,879) |
Cash and cash equivalents at the start of the period |
3,729 |
5,762 | 5,762 |
Exchange and other movements | (211) | 241 | (154) |
Cash and cash equivalents at the end of the period |
2,856 |
2,520 |
3,729 |
Cash and cash equivalent deposits held in non-UK based banks
|
4,208 |
2,867 |
5,211
|
Cash and cash equivalent deposits held by employee share trusts
|
- |
2 |
- |
Net bank overdraft with UK based banks
| (1,352) | (349) | (1,482) |
2,856 | 2,520 | 3,729 | |
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 2012 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 2012. These policies are unchanged from those set out by the Group in its consolidated financial statements for the year ended 31 December 2011 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. There are no new standards or interpretations endorsed by the EU during 2012 that impact on the financial results or presentation.
The interim financial information for the six months ended 30 June 2012 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 2011. 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 2011.
The Interim Report was approved by the Directors on 25th September 2012. |
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 five divisions: Space Government & Defence (G&D) Environment (ENV) Media & Broadcast (M&B) Applications Management (SUP)
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. | ||||
Information about reportable segments | |||||||
External revenues | Space | G&D | ENV | M&B | SUP | Total | |
£000 | £000 | £000 | £000 | £000 | £000 | ||
6 months ended 30 June 2012 | |||||||
Professional fees revenue | 6,981 | 2,754 | 2,084 | 4,283 | 1,780 | 17,882 | |
Other revenue | 197 | 523 | 28 | 517 | 168 | 1,433 | |
External revenue for reportable segments | 7,178 | 3,277 | 2,112 | 4,800 | 1,948 | 19,315 | |
Other external revenue | 308 | ||||||
Consolidated revenue | 19,623 | ||||||
6 months ended 30 June 2011 | |||||||
Professional fees revenue | 7,433 | 3,297 | 2,426 | 3,804 | 1,769 | 18,729 | |
Other revenue | 359 | 1,257 | 42 | 1,435 | 133 | 3,226 | |
External revenue for reportable segments | 7,792 | 4,554 | 2,468 | 5,239 | 1,902 | 21,955 | |
Other external revenue | 50 | ||||||
Consolidated revenue | 22,005 | ||||||
Year ended 31 December 2011 | |||||||
Professional fees revenue | 15,319 | 5,692 | 4,093 | 8,443 | 3,378 | 36,925 | |
Other revenue | 523 | 2,171 | 125 | 2,079 | 283 | 5,181 | |
External revenue for reportable segments | 15,842 | 7,863 | 4,218 | 10,522 | 3,661 | 42,106 | |
Other external revenue | 170 | ||||||
Consolidated revenue | 42,276 | ||||||
Information about reportable segments (continued) | |||||||
Profit before tax | Space | G&D | ENV | M&B | SUP | Total | |
£000 | £000 | £000 | £000 | £000 | £000 | ||
6 months ended 30 June 2012 | |||||||
Reportable segment contribution | 1,166 | 1,023 | 270 | 1,835 | 565 | 4,859 | |
Other contribution | (64) | - | - | 168 | - | 104 | |
Attributable overheads | - | - | - | - | (429) | (429) | |
Contribution | 1,102 | 1,023 | 270 | 2,003 | 136 | 4,534 | |
Central overheads | (3,496) | ||||||
EBITA | 1,038 | ||||||
Finance costs | (120) | ||||||
Finance income | 16 | ||||||
Profit before tax | 934 | ||||||
6 months ended 30 June 2011 | |||||||
Reportable segment contribution | 1,551 | 900 | 419 | 1,202 | 818 | 4,890 | |
Other contribution | 37 | - | - | 46 | - | 83 | |
Attributable overheads | - | - | - | - | (415) | (415) | |
Contribution | 1,588 | 900 | 419 | 1,248 | 403 | 4,558 | |
Central overheads | (3,456) | ||||||
EBITA | 1,102 | ||||||
Finance costs | (62) | ||||||
Finance income | 12 | ||||||
Profit before tax | 1,052 | ||||||
Year ended 31 December 2011 | |||||||
Reportable segment contribution | 3,600 | 1,758 | 135 | 3,081 | 1,447 | 10,021 | |
Other contribution | 35 | - | - | 178 | - | 213 | |
Attributable overheads | (811) | (811) | |||||
Contribution | 3,635 | 1,758 | 135 | 3,259 | 636 | 9,423 | |
Central overheads | (7,259) | ||||||
EBITA | 2,164 | ||||||
Finance costs | (196) | ||||||
Finance income | 38 | ||||||
Profit before tax | 2,006 | ||||||
Information about reportable segments (continued) | |||||||
Group assets | Space | G&D | ENV | M&B | SUP | Total | |
£000 | £000 | £000 | £000 | £000 | £000 | ||
As at 30 June 2012 | |||||||
Reportable segment - non-current assets | 2,223 | - | 107 | 3,380 | - | 5,710 | |
Reportable segment - current assets | 4,366 | 1,756 | 1,295 | 2,250 | 845 | 10,512 | |
6,589 | 1,756 | 1,402 | 5,630 | 845 | 16,222 | ||
Other - non-current assets | 9,484 | ||||||
Other - current assets | 6,033 | ||||||
Total assets | 31,739 | ||||||
As at 30 June 2011 | |||||||
Reportable segment - non-current assets | 2,223 | - | 50 | 3,380 | - | 5,653 | |
Reportable segment - current assets | 5,804 | 2,210 | 1,293 | 2,004 | 807 | 12,118 | |
8,027 | 2,210 | 1,343 | 5,384 | 807 | 17,771 | ||
Other - non-current assets | 9,444 | ||||||
Other - current assets | 4,495 | ||||||
Total assets | 31,710 | ||||||
As at 31 December 2011 | |||||||
Reportable segment - non-current assets | 2,223 | - | 136 | 3,380 | - | 5,739 | |
Reportable segment - current assets | 5,411 | 1,278 | 1,360 | 1,211 | 970 | 10,230 | |
7,634 | 1,278 | 1,496 | 4,591 | 970 | 15,969 | ||
Other - non-current assets | 9,243 | ||||||
Other - current assets | 7,027 | ||||||
Total assets | 32,239 | ||||||
Information about reportable segments (continued) | ||||||||||||||
Group liabilities | Space | G&D | ENV | M&B | SUP | Total | ||||||||
£000 | £000 | £000 | £000 | £000 | £000 | |||||||||
As at 30 June 2012 | ||||||||||||||
Reportable segment - current liabilities | 995 | 442 | 12 | 52 | 501 | 2,002 | ||||||||
Other - non-current liabilities | 3,719 | |||||||||||||
Other - current liabilities | 8,833 | |||||||||||||
Total liabilities | 14,554 | |||||||||||||
As at 30 June 2011 | ||||||||||||||
Reportable segment - current liabilities | 587 | 510 | 283 | 800 | 613 | 2,793 | ||||||||
Other - non-current liabilities | 3,132 | |||||||||||||
Other - current liabilities | 9,774 | |||||||||||||
Total liabilities | 15,699 | |||||||||||||
As at 31 December 2011 | ||||||||||||||
Reportable segment - current liabilities | 1,471 | 565 | 96 | 420 | 563 | 3,115 | ||||||||
Other - non-current liabilities | 3,709 | |||||||||||||
Other - current liabilities | 8,729 | |||||||||||||
Total liabilities | 15,553 | |||||||||||||
Geographical split | UK | Rest of Europe | Other | Total | ||||||||||
£000 | £000 | £000 | £000 | |||||||||||
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 | ||||||||||
6 months ended 30 June 2011 | ||||||||||||||
Revenue from external customers by location of customers | 12,587 | 8,966 | 452 | 22,005 | ||||||||||
As at 30 June 2011 | ||||||||||||||
Non-current assets: | ||||||||||||||
Intangible assets | 50 | 5,739 | - | 5,789 | ||||||||||
Tangible assets | 6,377 | 2,916 | - | 9,293 | ||||||||||
Deferred tax assets | - | 15 | - | 15 | ||||||||||
Year ended 31 December 2011 | ||||||||||||||
Revenue from external customers by location of customers | 23,126 | 18,502 | 648 | 42,276 | ||||||||||
As at 31 December 2011 | ||||||||||||||
Non-current assets: | ||||||||||||||
Intangible assets | 135 | 5,742 | - | 5,877 | ||||||||||
Tangible assets | 6,291 | 2,798 | - | 9,089 | ||||||||||
Deferred tax assets | - | 16 | - | 16 | ||||||||||
3. | Exceptional charges | |||||||||||||
|
Unaudited Six months to 30 June 2012 £000 |
Unaudited Six months to 30 June 2011 £000 | Audited Year ended 31 December 2011 £000 | |||||||||||
| ||||||||||||||
| Restructuring costs | 189 | 60 | 88 | ||||||||||
|
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 2012 £000 |
Unaudited Six months to 30 June 2011 £000 | Audited Year ended 31 December 2011 £000 | ||||||
| |||||||||
| Current tax charge | 291 | 417 | 418 | |||||
| Deferred tax credit | (48) | (15) | (169) | |||||
| Total | 243 | 402 | 249 | |||||
|
The charge for taxation for the six months ended 30 June 2012 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 2012.
| |||||||||
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 2012 £000 |
Unaudited Six months to 30 June 2011 £000 | Audited Year ended 31 December 2011 £000 | |||||
| ||||||||
| Profit attributable to shareholders | 691 | 650 | 1,757 | ||||
| Number of shares | '000 | '000 | '000 | ||||
| Basic weighted average number of shares | 28,950 | 28,935 | 28,935 | ||||
| Diluted weighted average number of shares |
30,623 |
30,400 |
30,425 | ||||
| ||||||||
| 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 2012 £000 |
Unaudited Six months to 30 June 2011 £000 | Audited Year ended 31 December 2011 £000 | |||||
| Basic | 3.1p | 2.6p | 6.8p | ||||
| Diluted | 3.0p | 2.5p | 6.4p | ||||
| ||||||||
| 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 2012 £000 |
Unaudited Six months to 30 June 2011 £000 | Audited Year ended 31 December 2011 £000 | |||||
| ||||||||
| Profit attributable to shareholders | 691 | 650 | 1,757 | ||||
| ||||||||
| Adjusted for: | |||||||
| Share based payments | 25 | 55 | 113 | ||||
| Exceptional charges (note 3) | 189 | 60 | 88 | ||||
| ||||||||
| Adjusted earnings | 905 | 765 | 1,958 | ||||
| ||||||||
| 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 2011, the Company paid an interim dividend of 0.36 pence per share in November 2011 and a final dividend of 0.85 pence per share in July 2012. The Board is recommending payment of an interim dividend for 2012 of 0.40p per share.
| |||||||
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. | ||||||||