Last checked at 19 Apr 2011 07:00
For immediate release | 19 April 2011 |
Surgical Innovations Group plc
("SI" or "the Group")
Final Results
Surgical Innovations Group plc (AIM: SUN), the designer and manufacturer of innovative medical devices, is pleased to announce its final results for the 12 months ending 31 December 2010.
Financial highlights
·; Revenue increased 55% to £7.045 million (2009: £4.541 million)
·; Pre-tax profit increased 487% to £1.549 million (2009: £264,000)
·; Operating margins increased to 22% (2009: 6%)
·; Net cash of £2.2 million generated from operating activities
·; Basic earnings per share of 0.48p (2009: 0.14p)
Operational highlights
·; Own brand sales increased 30% to £3.852 million (2009: £2.956 million); driven by flagship Resposable® products
·; OEM revenues increased 71% to £2.506 million (2009: £1.463 million)
·; Industrial sales boosted by delivery of £616,000 order
·; Continued major investment in research and development, plant and manufacturing
Doug Liversidge, Chairman of the Group, said: "The Group has undergone yet another year of transformation, successfully meeting the demands of rapid growth. We have continued to invest heavily in the business while R&D capability has undergone a step-change to speed up new product development and improvements to our existing technology. This has proven to be very appealing to potential OEM customers and as a result we are seeing an influx of enquires for a range of minimally invasive devices. With an already promising start to 2011, we are looking forward with confidence."
Enquiries:
Surgical Innovations Group plc
Doug Liversidge CBE, Chairman
Graham Bowland, Chief Executive Officer Tel: +44 (0) 113 230 7597
graham.bowland@surginno.co.uk www.surginno.com
Seymour Pierce Limited
Freddy Crossley / Sarah Jacobs Tel: +44 (0) 20 7107 8000
Corporate Broking
Marianne Woods www.seymourpierce.com
Media enquiries:
The Communications Portfolio
Ariane Comstive Tel: +44 (0) 20 7536 2028
ariane.comstive@communications-portfolio.co.uk
Chairman's statement
I am pleased to report a record year in the continuing development of the Group. Our strategy of producing innovative, high quality and cost-effective instruments to an increasingly cost-conscious market, coupled with the strong investment in 2008 and 2009, has really started to bear fruit, both for our own branded and OEM products.
Given the growth of the business, and to provide greater clarity of progress in the key markets in which we operate, the Group is for the first time reporting across three segments: SI Brand, OEM and Industrial.
Results
Revenue for the period was £7.045 million (2009: £4.541 million) and profit before tax increased nearly five-fold to £1.549 million (2009: £264,000).
A large part of this growth has arisen from sales in the OEM segment which accounted for 35% of total revenue (2009: 32%). Sales growth of SI branded products was driven by our Resposable® products and overall revenues were boosted by the delivery of a £616,000 order in the Industrial segment in May 2010; sales to industrial customers accounted for 10% of total revenues for 2010.
Retained profit for the period was £1.788 million (2009: £525,000) including a taxation
Cash flow and investment
During the year the Group generated net cash of £2.202 million from operating activities, enabling the Group to continue its strong investment in product development with capitalised investment in R&D increasing by 57% to £1.674 million (2009: £1.066 million) reflecting a step-change in the structure of the R&D team as well as a stronger focus on new product development.
Elsewhere capital expenditure remained strong with £628,000 invested in plant and equipment while the total number of employees and agency staff increased from 76 at the end of 2009 to 117 at the end of 2010. We have continued to make staff appointments in all areas of the business, while the R&D team has been re-organised in such a way as to encourage product concept generation.
The Clinical Advisory Board now consists of nine highly-experienced surgeons covering a wide range of specialisms in minimally invasive surgery, with Mr Marco Adamo and Mr Jon Conroy joining the Board in January 2011, the latter extending the team's expertise into arthroscopy.
Dividend
In 2009, SI successfully applied to the courts to cancel the Group's accumulated losses. The purpose of this was to enable the Board to implement a dividend strategy at such time as it considers appropriate. While a strategy remains under review, the Board believes that at this stage in the Group's development it would be more appropriate to continue its focus on strong inward investment.
Acquisitions
The Board continues to review acquisition opportunities in the area of minimally invasive surgery where strong synergies exist with the Group and where our R&D expertise and in-house manufacturing capabilities can create improvements to the products and cost savings for the end user.
Outlook
Trading in the period since the year end has been encouraging, particularly from the core business, where we have seen further orders for SI branded products, particularly for YelloPort+plus®. The R&D team continues to improve the SI branded product range to generate a wider range of new products and enhancements for our global distributor network and affirm our position as a leading innovator within the field of minimally invasive surgery.
In February 2011 we were pleased to announce the four year exclusive contract for a minimum of $2.2 million with US-based Mediflex Surgical Products ("Mediflex") with regard to the inclusion of YelloPort+plus® in surgical trays in the US. We are also being approached by several other OEM customers to develop new laparoscopic products on an exclusive basis.
We remain confident about the future growth prospects of the business for the remainder of 2011 and further into 2012 and 2013 as new products are launched towards the end of this year and the increasing traction with OEM customers gains momentum.
I would like to thank the Board and staff for their tireless work in 2010 and their contribution to the rapid growth of the business. We are better positioned than ever to take full advantage of the opportunities that are available to us and I look forward to reporting on the continuing success of the Group over the coming year.
Doug Liversidge CBE
Chairman
Operating review
The investment made in the Group throughout 2008 and 2009 started to make a material impact in 2010 and resulted in a year of record performance.
All three segments of the business demonstrated significant growth in 2010. The main focus remains our core business of minimally invasive surgery, either through our own branded products or on behalf of our OEM customers.
We continued to make significant investment in research and development as well as in our manufacturing capability.
Research & Development
The Group's continuing success and growth is dependent on its ability to create new concepts and intellectual property in the field of minimally invasive surgery. Significant investment of £1.834 million was made in 2010 (2009: £1.066 million) in the R&D team as well in a change in its structure. R&D now employs 28 individuals and is divided into concept and development teams.
The concept team of seven has been given a wide brief to generate new ideas across all areas of minimally invasive surgery. Working closely with the Clinical Advisory Board, the team has a target to generate six concepts per annum which can be transferred to the development team for further work. The team is working on a number of new products and improvements which are on course to be brought to the market by the end of 2011. Furthermore, in 2010 the Group filed nine new UK patents as compared to five in 2009.
The R&D team has also benefited from the investment in in-house manufacturing, a 3D printer and advanced CAD technology, with the result that new ideas and prototypes can now be presented to potential customers in a matter of days rather than months.
Looking forward, the Group expects to continue its high level of investment in R&D as part of an ongoing strategy to ensure a regular stream of new products and continual product improvement.
Manufacturing
During 2010, £628,000 was invested in tooling, plant and machinery - this was a continuation of the £839,000invested in 2009. The focus in 2010 was in areas where additional capacity was required, and in plastic injection moulding, which now enables the Group to manufacture in-house instrumentation in their entirety.
The manufacturing facility now operates a continuous daily three-shift system, constituting a much higher return on capital employed as compared to 2009. Capacity has increased in all areas of the facility and this has been complemented by the introduction of lean manufacturing practices to optimise process performance; this will continue throughout 2011. Computerised data control measuring has now been introduced to all areas of the machine shop, giving us the ability to analyse tolerance information and enhance quality control.
Our facility allows for further capacity in the foreseeable future and investment scheduled for the current financial year will facilitate the continued growth and optimisation of the manufacturing arm. Injection moulding capacity will be expanded and further automation within the cleanrooms is planned as part of our wider initiative to improve operating efficiencies throughout the Group.
SI Brand
Revenues from SI branded products increased over the period by 30% to £3.852 million (2009: £2.956 million). This growth was driven by SI's flagship Resposable® products; YelloPort+plus® and Logi®Range.
Demand for Resposable® instruments, where some elements are disposable and others reusable, reflects a culture change within the medical device industry and provides cost-effective solutions to an increasingly cost-conscious environment.
The sales and marketing of SI's products continued apace in its target regions. The business development team now consists of four full time employees who are looking to expand distribution of SI's products through its network of over 45 dealers in Europe, the Middle East, India, Australasia and the US. The team continues to attend international exhibitions in these territories.
In 2010 it became evident that the routes to market in the US are different for each product. For example, the most effective way to distribute the Logi®Range is via a master dealer, while YelloPort+plus® benefits from being distributed via serviced tray companies. Since the year end we announced a $2.2 million contract with Mediflex Surgical Products with regard to the inclusion of YelloPort+plus® in surgical trays throughout the US.
In the UK, the Group extended its exclusive distribution partnership with Elemental Healthcare for a further three years, with particular focus on YelloPort+plus® and Logi®Range instruments.
New product development and product enhancement for the SI Brand continues apace and is driven by the R&D team's close working relationship with the Clinical Advisory Board.
All our existing products are under continuous scrutiny by the R&D team to improve quality and performance, as well as product line extensions. Investment in our own machinery allows us to provide a greater range of disposable elements that complement the reusable parts. We are currently expanding the Logi®Range to include a broader range of jaws in different sizes introducing it to new areas of laparoscopic surgery.
With increasing focus on safer surgery and cosmesis (the cosmetic aspect surgery), there is a drive for smaller and even less invasive surgery. To respond to this, SI is taking the strategic step of developing a range of 3mm Resposable® instrumentation which is compatible with its existing non-disposable handles that are already in the market place. SI is also designing percutaneous instruments - surgical devices that access the patient through a needle puncture rather than a port - and updates on these developments will be provided in due course.
As a result the Group has steadily built a reputation as a leading innovator in the field of minimally invasive surgery.
OEM
Revenues in the OEM segment increased during the period by 71% to £2.506 million (2009: £1.463 million), of which royalties were £347,000. The growth in this part of the business is a reflection of our strong relationships with large medical device companies such as Gyrus, Teleflex Medical and CareFusion.
The OEM business is reliant on our partners to drive business on our behalf and it can, on occasion, be unpredictable in terms of repeat revenue streams from individual partnerships. To counteract this we collaborate closely with our partners to gain understanding of the challenges they encounter in the marketing and acceptance of their specific OEM product lines.
The greatest attraction to our OEM customers is undoubtedly our strategic positioning of a value added, full service offering of design, regulation and manufacturing. This approach has made us of particular interest to US medical device companies and it is from here that the majority of enquiries are now being generated.
Crucially and strategically, the Group retains the full intellectual property rights for any devices it develops in return for providing exclusive worldwide distribution rights to the OEM customer over a fixed period of time. Importantly the Group is not offering contract manufacturing or a long-term assignment of a licence, with the exception of revenues that are generated from royalties. The ownership of all intellectual property enables the Group to take back distribution rights at the end of any distribution agreement or if sales targets are not met.
Industrial
Total revenues for the Industrial segment during the year were £687,000(2009: £122,000). As previously stated, the delivery of a £616,000 order in May 2010 significantly boosted sales and revenues. As predicted, sales in the second half of the year returned to historic levels. We continue to seek opportunities where our intellectual property can be adapted to industrial applications and the Group continues to engage with major industrial partners. We look forward to updating shareholders on our progress.
Employees and management
In 2010 we continued to make appointments across all areas of the business increasing the total number of employees and agency staff to 117 (2009: 76). I would like to thank all our staff and management for their support and hard work in the last year.
Financial review
Revenue
Revenue increased 55% to £7.045 million (2009: £4.541 million). This increase was as a result of a 71% increase in OEM revenues to £2.506 million together with increases in the other two reporting segments: SI Brand and Industrial.
Gross margin
Gross margin has increased to 50% (2009: 42%) with the Group again targeting an improvement in 2011 with increasing volumes, operational efficiencies and substantial investment in machinery.
Operating expenses
The Group's operating expenses increased in 2010 by £404,000 (26%) as a consequence of investment in business development personnel and associated sales and marketing costs.
Employee numbers increased substantially during the year in areas which will add future value to the business and provide a level of customer service that benefits our organisation. As a consequence, operating expenses are projected to increase in 2011 but at levels that provide overall Group profitability within planned objectives.
Notwithstanding our investment in personnel, the Group continues to rigorously control costs and is aware of the need to generate cash within the business as a means of funding future capital and product investment.
Finance income and costs
The net financial expense for the year was £30,000 (2009: £27,000). This reflects the reduced returns available on the Group's cash deposits coupled with the cost of asset finance. We continue to finance assets used in the manufacturing processes of the business; ensuring funds remain within the Group for both internal product development and our working capital needs.
Profitability and operating margins
The Group's operating profit for 2010 was £1.579 million (2009: £291,000). This is after charging £8,000 of non-cash expenditure relating to share-based payments. We are greatly encouraged by the substantial uplift in operating margin to 22% (2009: 6%). We believe there is further room for improvement through product mix and continued capital investment within the manufacturing facility.
Capitalised development costs
The Group has a policy of continuous product development both for SI Brand and OEM partner devices. As in previous years, the Board is confident in the success of these products and accordingly £1.674 million of costs have been capitalised during the year, increasing the total amount of capitalised costs to £3.984 million.
YelloPort+plus® continues to generate revenues and under the Group's accounting policy £73,000 of associated development costs were amortised in the period (2009: £101,000) together with £111,000 in relation to other products where revenue commenced in the period.
Following review the Board recognised an impairment charge of £334,000 within the financial statements and at 31 December 2010 confirmed that no further provision for impairment was necessary.
Foreign currency
The Group maintains foreign currency bank accounts and, wherever possible, supplier payments are made in Euros or Dollars to utilise currency receipts.
The Group has used forward exchange contracts and will continue to monitor the need for such contracts depending upon the level of natural hedging achievable.
Taxation
The Group recognised a tax credit of £239,000 resulting from deferred tax, reflecting the extent to which recoverability of tax losses can be foreseen with reasonable certainty. The Group holds deferred tax assets on the balance sheet of £432,000 (2009: £193,000). In addition there are a further £16.100 million (2009: £14.600 million) of tax losses that have not been recognised.
Earnings per share (EPS)
The Group achieved 0.48p (2009: 0.14p) underlying basic EPS in 2010. There were shares issued during the year and full details of all the EPS calculations are set out in note 6 to the accounts.
Cash and net funds
At the end of 2010 the Group had £442,000 (2009: £622,000) in net funds. Net funds are defined as cash and cash equivalents less obligations under finance leases..
Working capital
Working capital increased to £3.942 million (2009: £3.630 million) as a result of a reduction of £211,000 in trade and other payables to £607,000 (2009: £818,000). The business generated net cash from operations of £2.202 million (2009: £1.439 million), however after accounting for the acquisition of non-current assets of £2.044 million (2009: £1.517 million) there was a net cash increase in the year of £60,000 (2009: decrease of £316,000).
Consolidated statement of comprehensive income
for the year ended 31 December 2010
2010 | 2009 | |||||||
Non-recurring | Non-recurring | |||||||
Headline | costs | Total | Headline | costs | Total | |||
Notes | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||
Revenue | 5 | 7,045 | - | 7,045 | 4,541 | - | 4,541 | |
Cost of sales | (3,526) | - | (3,526) | (2,447) | (200) | (2,647) | ||
Gross profit | 3,519 | - | 3,519 | 2,094 | (200) | 1,894 | ||
Other operating expenses | (1,932) | - | (1,932) | (1,528) | - | (1,528) | ||
Share-based payments | (8) | - | (8) | (75) | - | (75) | ||
Operating profit | 1,579 | - | 1,579 | 491 | (200) | 291 | ||
Finance costs | (39) | - | (39) | (40) | - | (40) | ||
Finance income | 9 | - | 9 | 13 | - | 13 | ||
Profit before taxation | 1,549 | - | 1,549 | 464 | (200) | 264 | ||
Taxation | 239 | - | 239 | 261 | - | 261 | ||
Profit and total comprehensive income for the period attributable to the owners of the parent | 1,788 | - | 1,788 | 725 | (200) | 525 | ||
Earnings per share, total and continuing | ||||||||
Basic | 6 | 0.48p | 0.14p | |||||
Diluted | 6 | 0.45p | 0.14p | |||||
Consolidated balance sheet
as at 31 December 2010
2010 | 2009 | ||
Notes | £'000 | £'000 | |
Assets | |||
Non-current assets | |||
Property, plant and equipment | 2,477 | 2,056 | |
Intangible assets | 3,295 | 2,139 | |
Deferred tax asset | 432 | 193 | |
6,204 | 4,388 | ||
Current assets | |||
Inventories | 2,033 | 2,047 | |
Trade receivables | 2,168 | 2,135 | |
Other current assets | 513 | 460 | |
Cash and cash equivalents | 2,622 | 2,508 | |
7,336 | 7,150 | ||
Total assets | 13,540 | 11,538 | |
Equity and liabilities | |||
Equity attributable to equity holders of the parent company | |||
Share capital | 7 | 3,815 | 3,738 |
Share premium account | 75 | 18,809 | |
Capital reserve | 329 | 329 | |
Retained earnings | 6,369 | (14,236) | |
Total equity | 10,588 | 8,640 | |
Non-current liabilities | |||
Obligations under finance leases | 653 | 511 | |
653 | 511 | ||
Current liabilities | |||
Bank overdraft | 1,177 | 1,123 | |
Trade and other payables | 607 | 818 | |
Obligations under finance leases | 350 | 252 | |
Accruals | 165 | 194 | |
2,299 | 2,387 | ||
Total liabilities | 2,952 | 2,898 | |
Total equity and liabilities | 13,540 | 11,538 |
Consolidated cash flow statement
for the year ended 31 December 2010
Year ended | Year ended | |
31 December | 31 December | |
2010 | 2009 | |
£'000 | £'000 | |
Cash flows from operating activities | ||
Operating profit | 1,579 | 291 |
Adjustments for: | ||
Depreciation of property, plant and equipment | 448 | 345 |
Amortisation of intangible assets | 518 | 101 |
Share-based payment | 8 | 75 |
Operating cash flows before movement in working capital | 2,553 | 812 |
Decrease/(increase) in inventories | 14 | (331) |
(Increase)/decrease in receivables | (86) | 913 |
(Decrease)/increase in payables | (240) | 47 |
Cash generated from operations | 2,241 | 1,441 |
Interest paid | (39) | (40) |
Tax received | - | 38 |
Net cash generated from operating activities | 2,202 | 1,439 |
Cash flows from investing activities | ||
Interest received | 9 | 13 |
Acquisition of non-current assets | (2,044) | (1,517) |
Net cash used in investment activities | (2,035) | (1,504) |
Cash flows from financing activities | ||
Cash received from issue of shares | 152 | - |
Repayment of bank loans | - | (6) |
Repayment of obligations under finance leases | (259) | (245) |
Net cash used in financing activities | (107) | (251) |
Net increase in cash and cash equivalents | 60 | (316) |
Cash and equivalents at beginning of period | 1,385 | 1,701 |
Cash and cash equivalents at end of period | 1,445 | 1,385 |
Cash at bank and in hand | 2,622 | 2,508 |
Bank overdraft | (1,177) | (1,123) |
Cash and cash equivalents at end of period | 1,445 | 1,385 |
Consolidated statement of changes in equity
for the year ended 31 December 2010
Share | Share | Capital | Retained | ||
capital | premium | reserve | earnings | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | |
Balance as at 1 January 2009 | 3,738 | 18,809 | 329 | (14,836) | 8,040 |
Employee share-based payment options | - | - | - | 75 | 75 |
Profit and total comprehensive income for the period | - | - | - | 525 | 525 |
Balance as at 31 December 2009 | 3,738 | 18,809 | 329 | (14,236) | 8,640 |
Employee share-based payment options | - | - | - | 8 | 8 |
Reorganisation | - | (18,809) | - | 18,809 | - |
Transactions with owners | 77 | 75 | - | - | 152 |
Profit and total comprehensive income for the period | - | - | - | 1,788 | 1,788 |
Balance as at 31 December 2010 | 3,815 | 75 | 329 | 6,369 | 10,588 |
Notes to the financial statements
1. Reporting Entity
Surgical Innovations Group plc ("the Company") is a public limited company incorporated and domiciled in England and Wales (registration number 2298163). The Company's registered address is Clayton Wood House, 6 Clayton Wood Bank, Leeds LS16 6QZ.
The Company's ordinary shares are traded on the AIM market of the London Stock Exchange. The financial statements of the Company for the twelve months ended 31 December 2010 comprise the Company and its subsidiaries (together referred to as the "Group").
The Group is primarily involved in the design, development and manufacture of devices for use in Minimally Invasive Surgery (MIS) and industrial markets. Surgical devices are targeted at the operating theatre environment in both public and private hospitals. In international markets, the Group sells through independent healthcare distributors, through Original Equipment Manufacture (OEM) and licensing contracts with major suppliers of medical equipment.
2. Basis of Preparation
These condensed consolidated financial statements have been prepared in accordance with the accounting policies set out in the annual report for the year ended 31 December 2010 and those to be adopted at 31 December 2010 (see note 3).
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), as adopted for use in the EU, this announcement does not itself contain sufficient information to comply with IFRSs. The Group expects to publish full financial statements that comply with IFRSs in May 2011.
3. Accounting policies
The same accounting policies, presentations and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements. The annual financial statements of Surgical Innovations Group plc are prepared in accordance with International Financial Reporting Standards as adopted by the European Union.
4. Publication of non-statutory financial statements
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in Sections 434 and 435 of the Companies Act 2006.
The consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated balance sheet at 31 December 2010 and the consolidated cash flow statement have been extracted from the Group's financial statements upon which the auditors opinion is unqualified and does not include any statement under section 498(2) or 498(3) of the Companies Act 2006. Those financial statements have not yet been delivered to the Registrar.
The statutory accounts for the year ended 31 December 2009 have been delivered to the registrar, contained an unqualified audit report and did not include a statement under section 498(2) or 498(3) of the Companies Act 2006.
The audited accounts will be posted to all shareholders in due course and will be available on request by contacting the Company Secretary at the Company's Registered Office.
5. Segmental Reporting
Geographic analysis
2010 | 2009 | |
£'000 | £'000 | |
United Kingdom | 2,119 | 1,454 |
Europe | 2,908 | 1,827 |
US | 1,410 | 624 |
Rest of World | 608 | 636 |
7,045 | 4,541 |
Revenues are allocated geographically on the basis of where revenues were received from and not from the ultimate final destination of use.
For management purposes the Group is organised into three business segments, SI Brand, OEM and Industrial. These revenue streams are the basis on which the Group reports its segment information.
Segment results, assets and liabilities include assets directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets and liabilities and head office expenses.
These operating segments are monitored and strategic decisions are made on the basis of adjusted segment operating results.
Business Segments
The principal activities of the SI Brand business unit are the research, development, manufacture and distribution of SI branded minimally invasive devices.
The principal activities of the OEM business unit are the research, development, manufacture and distribution of minimally invasive devices for third party medical device companies through either own label or co-branding.
The principal activities of the industrial business unit are the research, development, manufacture and sale of minimally invasive technology products for industrial application.
SI Brand | OEM | Industrial | Total | ||
Year ended 31 December 2010 | £'000 | £'000 | £'000 | £'000 | |
Revenue | 3,852 | 2,506 | 687 | 7,045 | |
Segment result | 1,151 | 930 | 390 | 2,471 | |
Unallocated expenses | (892) | ||||
Profit from operations | 1,579 | ||||
Finance income | 9 | ||||
Finance costs | (39) | ||||
Profit before taxation | 1,549 | ||||
Tax | 239 | ||||
Profit for the year | 1,788 | ||||
Year ended 31 December 2009 | £'000 | £'000 | £'000 | £'000 | |
Revenue | 2,956 | 1,463 | 122 | 4,541 | |
Segment result | 1,240 | 255 | 70 | 1,565 | |
Unallocated expenses | (1,274) | ||||
Profit from operations | 291 | ||||
Finance income | 13 | ||||
Finance costs | (40) | ||||
Profit before taxation | 264 | ||||
Tax | 261 | ||||
Profit for the year | 525 |
6. Earnings per ordinary share
Basic earnings per ordinary share
The calculation of basic earnings per ordinary share for the year ended 31 December 2010 was based upon the profit attributable to ordinary shareholders of £1,788,000 (2009: £525,000) and a weighted average number of ordinary shares outstanding for the year ended 31 December 2010 of 375,812,587 (2009: 373,841,902).
Diluted earnings per ordinary share
The calculation of diluted earnings per ordinary share for the year ended 31 December 2010 was based upon the profit attributable to ordinary shareholders of £1,788,000 (2009: £525,000) and a weighted average number of ordinary shares outstanding for the year ended 31 December 2010 of 397,339,910 (2009: 373,841,902). All share options at the financial year end were anti-dilutive.
2010 | 2009 | |
Earnings | £'000 | £'000 |
Earnings for the purpose of basic and diluted earnings per ordinary share | 1,788 | 525 |
7. Share capital
2010 | 2009 | |
£'000 | £'000 | |
Authorised 600,000,000 | ||
(2009: 600,000,000) ordinary shares of 1p each | 6,000 | 6,000 |
Allotted, called up and fully paid 381,491,902 | ||
(2009: 373,841,902) ordinary shares of 1p each | 3,815 | 3,738 |
8. Annual Report and AGM
The Annual Report will be available from the Company's website, www.sigroupplc.com and posted to shareholders by 18 May 2011. The Annual Report contains notice of the Annual General Meeting of the Company which will be held at 1.00 p.m. on 20 June 2011 at Clayton Wood House, 6 Clayton Wood Bank, Leeds LS16 6QZ.