Last checked at 19 Nov 2009 07:00
| For Immediate Release | 19 November 2009 |
Plastics Capital plc
Interim Results for six months ended 30 September 2009
Plastics Capital plc (AIM: PLA; "Plastics Capital" the "Company" or the "Group") the consolidator of niche plastics products manufacturers, today announces its interim results for the six months ended 30 September 2009.
The financial information has been prepared using International Financial Reporting Standards as adopted by the EU ("IFRS").
Financial highlights
There have been extreme global economic conditions over the last 12-18 months. The table below demonstrates that the results for the last six months show a trend of improved performance in comparison to the six months ended 31 March 2009.
| Six months ended 30 September 2009 £000 | % Change | Six months ended 31 March 2009 £000 | % Change | Six months ended 30 September 2008** £000 | |
| Revenue | 12,883 | -3.0% | 13,280 | -10.9% | 14,905 |
| Gross Profit | 5,218 | +20.4% | 4,335 | -25.6% | 5,830 |
| EBITDA excluding exceptionals | 2,631 | +8.4% | 2,427 | -10.3% | 2,706 |
| Profit before tax* | 1,546 | +475% | 269 | -84.5% | 1,738 |
| Profit after tax* | 1,331 | +21.3% | 1,097 | -31.7% | 1,606 |
| Adjusted EPS*** | 4.9p | +21.3% | 4.1p | -31.7% | 6.0p |
* Excluding amortisation, exceptionals, unrealised foreign exchange & derivative gains/losses
** A reconciliation to the consolidated income statement is shown in note 2
*** Based on 26.95m shares currently in issue
Operational highlights
Commenting on these results, Faisal Rahmatallah, Executive Chairman, said:
"Although trading conditions have been extremely challenging, these interim results demonstrate how well the Group has responded. Volumes have started to turn upwards and profitability has improved as a result of cost reductions and the weakness of sterling. Our current focus is to take advantage of sterling's weakness, to drive product innovation and to expand sales representation geographically in order to generate organic growth as global economic conditions recover. The Board is confident of further progress in the second half year."
| Plastics Capital plc Faisal Rahmatallah, Executive Chairman Nick Ball, Finance Director | Tel: 020 7326 8423 |
| Cenkos Securities Stephen Keys Beth McKiernan | Tel: 020 7397 8900 |
| Buchanan Communications Richard Darby Christian Goodbody | Tel: 020 7466 5000 |
Notes to Editors
Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets. The Group has four factories in the UK, one in Thailand and sales offices in the USA and Japan. Approximately 60 per cent of sales are exported to over 70 countries worldwide. Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness. The Group has approximately 285 employees.
Further information can be found on www.plasticscapital.com
CHAIRMAN'S STATEMENT
Introduction
We are pleased to present our interim results for the six months ended 30 September 2009.
As previously reported we have compared these interim results for financial year 2010 to the same period last year. However, the 2009 financial year comprised two distinctly different halves - up to September 2008, when recessionary conditions were mild and thereafter to March 2009, when the global economy went into severe recession. For this reason and because there is relatively little seasonality in our trading, it is relevant to compare the 2010 interims against both these periods.
Financial Review
Overall performance for the six months ended 30 September 2009 is in line with our expectations.
Compared to the same period last year, the Group has achieved similar levels of earnings before interest, tax depreciation and amortisation (EBITDA) and profit before tax (PBT), despite suffering a 14% reduction in turnover due to the global economic downturn. Compared to the immediate prior six month period, the Group has improved EBITDA by 8% and PBT by 475%, on turnover down by 3%.
The strong rebound in profitability results primarily from two factors; firstly, cost reductions that were commenced in the second half of last year and completed in the first quarter of this financial year and, secondly, sterling's weakness - although sterling started to weaken during the last financial year we were hedged and consequently saw no benefit. However in the current year the full benefit has come through.
Sales and demand levels have started to show recovery during the first half of 2010. It is not yet apparent in these results, partly because of timing and partly because we have seen raw material price deflation in certain areas, which has generally been passed on to customers and this masks volume recovery overall.
Of significance is our net debt which has reduced by £1.5m during the first half year. Cash flow has been strong and we have also incurred a small unrealised translation gain on our euro denominated debt.
Significant Developments
All four subsidiaries have completed some significant developments.
Our hose mandrel business, Bell, has made some excellent progress. Firstly, Bell has moved to new premises in Poole. This was completed with minimum disruption to customers and within budgeted costs and timescale. The current factory provides a superior working environment and additional space both to improve existing operations and to add additional capacity as and when needed. Secondly, Bell has widened its product range successfully to include various thermoplastic elastomers and secured significant new business in the half year as a result. Finally, Bell has been busy prospecting in India and China and is in the process of establishing sales agency relationships to expand sales in these very important countries.
Our creasing matrix business, C&T, has successfully completed a long term engineering project to develop and introduce new processing technology to improve product quality and reduce manufacturing costs - the benefits of this will be seen gradually over the next 6 months or so. In addition, considerable product range harmonisation and rationalisation is being introduced to reduce stockholding costs and also to help improve service and lower wastage.
Palagan, our specialist films business that has to date sold only in the UK, has started to seek and win business in Europe both directly and through agents. The strong product capabilities of this business and the weakness of sterling mean that this is a good opportunity for growth. Palagan has also been busy implementing a project to achieve British Retail Consortium accreditation, which will open up various segments of packaging for the food industry. I am pleased to say that this accreditation is now almost complete and we anticipate new business wins in this area in the near future.
Finally, BNL our plastic bearings business, has also had a very busy period. Of particular note has been:
The completion of a final round of cost reductions in June, which saw a further annualised cost savings of £0.4m
The ongoing transfer of product to be manufactured in the recently established Thai production facility - this is now approaching 50% of parts manufactured
The full implementation of tool-making capability in Thailand, with the first tools now being manufactured there
Investigation of both the Indian and Chinese markets with a view to setting up some form of sales representation in both these territories
Currency
The half year has again seen some significant currency volatility, although the overall picture is one of sterling weakness. Against the US$, sterling started the financial year at 1.43 and finished the half year at 1.62, representing a strengthening of some 15%, although the average rate was 1.59. Against the euro, sterling started the financial year at 1.08 and finished at 1.10, apparently relatively stable - however, at the end of July the rate touched 1.18 and the average rate over the period was 1.14. If we go back to the first half of the last financial year sterling was considerably stronger, starting the year at US$1.98 and €1.26.
Sterling's weakness is a major benefit to us, as UK-based exporters. So far, most of the benefit has come from translating foreign currency denominated sales back into sterling, but we can see our increased competitiveness opening up new markets and customers in the near future. Experts believe that sterling is set to remain weak for a while which would significantly benefit our business.
We continue to favour hedging forward approximately 12-18 months to assist with the predictability of earnings and cash flow. This financial year we are hedged at US$1.55, compared to last year when we were hedged at US$1.98. We have started to hedge forward for the next financial year with forwards contracts in place at an average of US$1.64 so far, this being 6% worse than the current year but considerably better than the rates experienced in the 3 years from 2005-2008.
Banking
Net bank debt at the end of the half year amounted to circa £18m. Approximately 60% of this debt is denominated in foreign currency, primarily Euros. The average cost has been just over 7%, as 66% of the debt is subject to an interest rate collar with a floor of circa 4.5%. Whilst this level of debt is a legacy of the pre-credit crunch era and appears high in today's environment, the Group has been sufficiently cash generative to meet interest and capital repayments comfortably.
During the half year, all banking covenants have been met and with the exception of the debt leverage covenant, all with good headroom. The debt leverage covenant has been tighter, primarily due to the currency volatility described above, which has caused the value of our foreign currency debt to move inconsistently when "marked to market" into sterling as required by IFRS. We anticipate performance against this covenant will improve as debt is paid down and volume recovery continues. The unrealised translation losses also have the disadvantage of making our statutory Income Statements volatile as large loan translation gains and losses can apply to any period, causing a distraction from the underlying operational performance; consequently we are actively exploring the possibility of converting all loans into sterling.
Current Trading and Future Prospects
As reported, trading conditions have improved during the first half of the financial year from a low point around the end of FY2009. We see this trend continuing albeit weakly at this stage. Currently our order books are better than earlier in the financial year, although they remain short as customers are cautious about their own prospects over the coming months. It should also be remembered that recovery is from an extremely depressed level.
In terms of strategy, we intend to concentrate on organic growth and cash flow, in order to create significant value by paying down debt and building the top line at current margins. Acquisitions remain a key part of our strategy going forward. However, we do not envisage acquisition activity resuming in the near term.
Future prospects for the Group are healthy. We have developed new capabilities and introduced a number of improved products in the last twelve months and we intend to take full advantage of these. In addition, we have good but under-developed penetration of key growth markets in the developing world - including China, India, Brazil, Turkey and Thailand. We intend to exploit these markets fully in the medium term. The Board looks forward to good progress being made over the full year.
The last twelve months have been particularly challenging for all employees within the Group. I am pleased to say that we have responded to the extreme recessionary conditions decisively and effectively - neither of which would have been possible without the full commitment and flexibility of everyone associated with the Group. The Board is extremely grateful for this and extends its thanks to all accordingly.
Faisal Rahmatallah
Executive Chairman
Plastics Capital plc
Consolidated Income Statements
for the six months ended 30 September 2009
| Note | 2009 | 2009 | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 | ||
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |||
| restated * | restated * | restated * | restated * | |||||||
| Before foreign exchange & exceptional items | Foreign exchange impact on derivatives and loans | Exceptional items | Total | Before foreign exchange & exceptional items | Foreign exchange impact on derivatives and loans | Exceptional items | Total | |||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |||
| Revenue | 12,883 | - | - | 12,883 | 14,905 | - | - | 14,905 | ||
| Cost of sales | (8,180) | 515 | (561) | (8,226) | (8,993) | (82) | (50) | (9,125) | ||
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| Gross profit | 4,703 | 515 | (561) | 4,657 | 5,912 | (82) | (50) | 5,780 | ||
| Distribution expenses | (716) | - | - | (716) | (467) | - | - | (467) | ||
| Administration expenses | (2,851) | - | - | (2,851) | (3,551) | - | (172) | (3,723) | ||
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| Operating profit | 1,136 | 515 | (561) | 1,090 | 1,894 | (82) | (222) | 1,590 | ||
| Financial income | 677 | 393 | - | 1,070 | 59 | - | - | 59 | ||
| Finance expense | (664) | - | - | (664) | (695) | (320) | - | (1,015) | ||
| Net financing income/(costs) | 13 | 393 | - | 406 | (636) | (320) | - | (956) | ||
| Profit/(Loss) before tax | 1,149 | 908 | (561) | 1,496 | 1,258 | (402) | (222) | 634 | ||
| Tax | 7 | (215) | - | - | (215) | (132) | - | - | (132) | |
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| Profit/(Loss) for the period before discontinuing operations | 934 | 908 | (561) | 1,281 | 1,126 | (402) | (222) | 502 | ||
| Discontinued operations | 5 | - | - | - | - | (312) | - | - | (312) | |
| Profit/(Loss) for the period | 934 | 908 | (521) | 1,281 | 814 | (402) | (222) | 190 | ||
| Other comprehensive income | ||||||||||
| Foreign exchange translation differences | (290) | - | - | (290) | 99 | - | - | 99 | ||
| Total comprehensive income | 644 | 908 | (521) | 991 | 914 | (403) | (222) | 289 | ||
| Basic earnings/(loss) per share | ||||||||||
| Continuing operations | 9 | 4.8p | 1.9p | |||||||
| Total | 9 | 4.8p | 0.7p | |||||||
* The prior half year has been restated to include operations classified as discontinued in the prior year as discontinued in the comparative period in accordance with IFRS5
Plastics Capital plc
Consolidated Income Statements (continued)
for the year ended 31 March 2009
| Note | 2009 | 2009 | 2009 | 2009 | ||||||
| £000 | £000 | £000 | £000 | |||||||
| Before foreign exchange & exceptional items | Foreign exchange impact on derivatives and loans | Exceptional items | Total | |||||||
| £'000 | £'000 | £'000 | £'000 | |||||||
| Revenue | 28,185 | - | - | 28,185 | ||||||
| Cost of sales | (17,030) | (990) | (596) | (18,616) | ||||||
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| Gross profit | 11,155 | (990) | (596) | 9,569 | ||||||
| Distribution expenses | (1,765) | - | - | (1,765) | ||||||
| Administration expenses | (6,099) | - | (1,145) | (7,244) | ||||||
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| Operating profit | 3,291 | (990) | (1,741) | 560 | ||||||
| Financial income | 72 | - | - | 72 | ||||||
| Finance expense | (2,362) | (2,545) | - | (4,907) | ||||||
| Net financing costs | (2,290) | (2,545) | - | (4,835) | ||||||
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| Profit/ (Loss) before tax | 1,001 | (3,535) | (1,741) | (4,275) | ||||||
| Tax | 7 | 696 | - | - | 696 | |||||
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| Profit /(Loss) for the year before discontinuing operations | 1,697 | (3,535) | (1,741) | (3,579) | ||||||
| Discontinued operations | 5 | - | - | (1,598) | (1,598) | |||||
| Profit /(Loss) for the year | 1,697 | (3,535) | (3,339) | (5,177) | ||||||
| Other comprehensive income | ||||||||||
| Foreign exchange translation differences | 474 | - | - | 474 | ||||||
| Total comprehensive income | 2,171 | (3,535) | (3,339) | (4,703) | ||||||
| Basic earnings/(loss) per share | ||||||||||
| Continuing operations | 9 | (13.3)p | ||||||||
| Total | 9 | (19.3)p | ||||||||
Plastics Capital plc
Consolidated Balance Sheets
|
| Unaudited As at 30 September 2009 | Unaudited As at 30 September 2008 | Audited As at 31 March 2009 | |
| £000 | £000 | £000 | ||
| Non-current assets | ||||
| Property, plant and equipment | 5,289 | 6,007 | 5,305 | |
| Investments | 33 | 33 | 33 | |
| Intangible assets | 23,901 | 25,161 | 24,460 | |
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| 29,223 | 31,201 | 29,798 | ||
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| Current assets | ||||
| Inventories | 2,825 | 3,412 | 2,844 | |
| Trade and other receivables | 5,630 | 7,596 | 5,411 | |
| Corporation tax asset | - | 151 | 59 | |
| Cash and cash equivalents | 771 | (9) | 407 | |
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| 9,226 | 11,150 | 8,721 | ||
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| Total assets | 38,449 | 42,351 | 38,519 | |
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| Current liabilities | ||||
| Interest-bearing loans and borrowings | 3,562 | 2,121 | 3,556 | |
| Trade and other payables | 3,980 | 4,381 | 3,467 | |
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| 7,542 | 6,502 | 7,023 | ||
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| Non-current liabilities | ||||
| Interest-bearing loans and borrowings | 15,376 | 15,857 | 16,444 | |
| Other financial liabilities | 523 | 326 | 1,200 | |
| Deferred tax liabilities | 1,428 | 2,165 | 1,272 | |
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| 17,327 | 18,348 | 18,916 | ||
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| Total liabilities | 24,869 | 24,850 | 25,939 | |
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| Net assets | 13,580 | 17,501 | 12,580 | |
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| Equity attributable to equity holders of the parent | ||||
| Share capital | 270 | 269 | 270 | |
| Share premium | 13,857 | 13,868 | 13,848 | |
| Reverse acquisition reserve | 2,640 | 2,640 | 2,640 | |
| Translation reserve | 127 | 42 | 417 | |
| Capital redemption reserve | 69 | - | 69 | |
| Retained earnings | (3,383) | 682 | (4,664) | |
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| Total equity | 13,580 | 17,501 | 12,580 | |
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Plastics Capital plc
Consolidated Cash Flow Statements
| Unaudited Six months ended 30 September 2009 | Unaudited Six months ended 30 September 2008 | Audited Year ended 31 March 2009 | ||
| £000 | £000 | £000 | ||
| Cash flows from operating activities after tax | ||||
| Profit/(loss) for the period | 1,281 | 190 | (5,873) | |
| Adjustments for: | ||||
| Depreciation, amortisation and impairment | 1,006 | 951 | 2,408 | |
| Financial income | (1,070) | (60) | (72) | |
| Financial expense | 664 | 1,098 | 5,488 | |
| Gain on disposal of PPE | - | - | 2 | |
| Equity settled share based payment expenses | - | - | 33 | |
| Income tax expense/(income) | 215 | 132 | - | |
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| Operating profit before changes in working capital and provisions | 2,096 | 2,311 | 1,986 | |
| (Increase) in trade and other receivables | (219) | (35) | 2,150 | |
| Decrease in inventories | 19 | 98 | 666 | |
| Increase/(decrease) in trade and other payables | 311 | (991) | (2,170) | |
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| Cash generated from operations | 2,207 | 1,383 | 2,632 | |
| Interest paid | (655) | (826) | (1,432) | |
| Income tax paid | - | (330) | (329) | |
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| Net cash from operating activities | 1,552 | 227 | 871 | |
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| Cash flows from investing activities | ||||
| Acquisition of subsidiary, net of cash acquired | - | (602) | - | |
| Acquisition of property, plant and equipment | (431) | (1,303) | (1,501) | |
| Interest received | - | 60 | 72 | |
| Acquisition of intangible assets | - | - | (135) | |
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| Net cash from investing activities | (431) | (1,845) | (1,564) | |
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| Cash flows from financing activities | ||||
| Proceeds/(fees) from the issue of share capital | - | (455) | 50 | |
| Proceeds from new loan | - | 569 | - | |
| Repayment of borrowings | (757) | (213) | (658) | |
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| Net cash from financing activities | (757) | (99) | (608) | |
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| Increase/(decrease) in cash and cash equivalents | 364 | (1,717) | (1,301) | |
| Cash and cash equivalents at 1 April | 407 | 1,708 | 1,708 | |
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| Cash and cash equivalents at 30 September and 31 March | 771 | (9) | 407 | |
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Plastics Capital plc
Consolidated statement of changes in equity
| Share capital | Share premium | Translation reserve | Reverse acquisition reserve | Capital redemption reserve | Retained earnings | Total | ||
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | ||
| Balance at 31 March 2008 | 269 | 13,868 | (57) | 2,640 | - | 492 | 17,212 | |
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| Total comprehensive income | ||||||||
| Profit or loss | - | - | - | - | - | 190 | 190 | |
| Foreign exchange translation differences | - | - | 99 | - | - | - | 99 | |
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| Balance at 30 September 2008 | 269 | 13,868 | 42 | 2,640 | - | 682 | 17,501 | |
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| Total comprehensive income | ||||||||
| Profit or loss | - | - | - | - | - | (5,367) | (5,367) | |
| Foreign exchange translation differences | - | - | 375 | - | - | - | 375 | |
| Other movement | - | - | - | - | - | (12) | (12) | |
| Total comprehensive income | - | - | 375 | - | - | (5,379) | (5,004) | |
| Transactions with owners recorded directly in equity | ||||||||
| Issue of new shares | 1 | 49 | - | - | - | - | 50 | |
| Capital redemption reserve | - | (69) | - | - | 69 | - | - | |
| Equity-settled share based payment transactions | - | - | - | - | - | 33 | 33 | |
| Total transactions with owners | 1 | (20) | - | - | 69 | 33 | 83 | |
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| Balance at 31 March 2009 | 270 | 13,848 | 417 | 2,640 | 69 | (4,664) | 12,580 | |
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| Total comprehensive income | ||||||||
| Profit or loss | - | - | - | - | - | 1,281 | 1,281 | |
| Foreign exchange translation differences | - | - | (290) | - | - | - | (290) | |
| Total comprehensive income | - | - | (290) | - | - | 1,281 | 991 | |
| Transactions with owners recorded directly in equity | ||||||||
| Equity-settled share based payment transactions | - | - | - | - | - | - | - | |
| Issue of new shares | - | 9 | - | - | - | - | 9 | |
| Total transactions with owners | - | 9 | - | - | - | - | 9 | |
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| Balance at 30 September 2009 | 270 | 13,857 | 127 | 2,640 | 69 | (3,383) | 13,580 | |
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1 Basis of preparation and accounting policies
Basis of Preparation
The interim financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs as at 30 September 2009 that are effective (or available for early adoption) as at 31 March 2010. Based on these adopted IFRSs, the directors have applied the accounting policies, as set out below, which they expect to apply to the annual IFRS financial statements for the year ending 31 March 2010.
However, the adopted IFRSs that will be effective (or available for early adoption) in the annual financial statements for the period ending 31 March 2010 are still subject to change and to additional interpretations and therefore cannot be determined with certainty. Accordingly, the accounting policies for that annual period will be determined finally only when the annual financial statements are prepared for the period ending 31 March 2010.
Accounting policies
The accounting policies applied to the Interim Results for six months ended 30 September 2009 are consistent with those of the Company's annual accounts for the year ended 31 March 2009 with the exception of the items noted below.
Determination and presentation of operating segments
As of 1 April 2009, the Group determines and presents operating segments based on the information that internally is provided to the Executive Chairman, who is the Group's chief operating decision maker. This change in accounting policy is due to the adoption of IFRS 8 Operating Segments. Previously operating segments were determined and presented in accordance with IAS 14 Segment Reporting. The new accounting policy in respect of segment operating disclosures is presented as follows.
Comparative segment information has been re-presented in conformity with the transitional requirements of IFRS 8. Since the change in accounting policy only impacts presentation and disclosure aspects, there is no impact on earnings per share.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group's other components. An operating segment's operating results are reviewed regularly by the Executive Chairman to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
Segment results that are reported to the Executive Chairman include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly intangible assets.
Presentation of financial statements
The Group applies revised IAS 1 Presentation of Financial Statements (2007), which became effective as of 1 April 2009. As a result, the Group presents in the consolidated statement of changes in equity all owner changes in equity, whereas non-owner changes in equity are presented in the consolidated statement of comprehensive income. This presentation has been applied in these condensed interim financial statements as of and for the six month period ended on 30 September 2009.
Comparative information has been re-presented so that it is also in conformity with the revised standard. Since the change in accounting policy only impacts presentation aspects, there is no impact on earning per share.
Restatement of Accounts
The interim accounts for the six month period ended 30 September 2008 have been restated for discontinued operations as disclosed in the annual accounts for the year ended 31 March 2009.
Operating segments
The Group has two reportable segments, as described below, which are the Group's strategic business units. The strategic business units offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Executive Chairman reviews internal management reports on a monthly basis. The following summary describes the operations in each of the Group's reportable segments:
Printing and Packaging - includes creasing matrix and films
Power Transmission - includes hose mandrel and plastic bearings
2 Reconciliation of financial highlights table to the consolidated income statement
| Unaudited Six months to 30 September 2009 | Unaudited Restated Six months to 30 September 2008 | Change | ||
| £000 | £000 | % | ||
| Revenue | 12,883 | 14,905 | -13.6% | |
| Gross profit | 4,657 | 5,780 | -19.4% | |
| Operating profit | 1,090 | 1,590 | -31.4% | |
| Add back: Depreciation | 421 | 335 | ||
| Add back: Amortisation and impairment | 559 | 559 | ||
| Add back: Exceptional costs | 561 | 222 | ||
| EBITDA before exceptionals | 2,631 | 2,706 | -2.8% | |
| Profit before tax | 1,496 | 634 | ||
| Add back: Amortisation and impairment | 559 | 559 | ||
| Add back: Exceptional costs | 561 | 222 | ||
| Add back: Unrealised foreign exchange (gains)/losses | (393) | 320 | ||
| Add back: Unrealised derivative (gains)/losses | (677) | 3 | ||
| Profit before tax* | 1,546 | 1,738 | -11.0% | |
| Taxation | (215) | (132) | ||
| Profit after tax* | 1,331 | 1,606 | -17.1% | |
| Basic adjusted EPS* | 4.9p | 6.0p | -17.1% | |
| Basic EPS from continuing operations | 4.8p | 1.9p | 152.6% | |
| Capital expenditure | 431 | 1,303 | -66.9% | |
| Net Debt | 18,167 | 17,987 | 1.0% |
* excluding amortisation, exceptionals, unrealised foreign exchange translation and unrealised derivative gains/losses
3 Operating segment information
| Power Transmission | Printing & Packaging | Other | Consolidation | |
| Unaudited Six months to 30 September 2009 | Unaudited Six months to 30 September 2009 | Unaudited Six months to 30 September 2009 | Unaudited Six months to 30 September 2009 | |
| £000 | £000 | £000 | £'000 | |
| External revenue | 5,949 | 6,934 | - | 12,883 |
| Profit/(loss) before tax | (246) | 851 | - | 605 |
| Segment assets | 8,259 | 6,789 | 23,401 | 38,449 |
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| Unaudited Restated Six months to 30 September 2008 | Unaudited Restated Six months to 30 September 2008 | Unaudited Restated Six months to 30 September 2008 | Unaudited Restated Six months to 30 September 2008 | |
| £000 | £000 | £000 | £'000 | |
| External revenue | 6,973 | 7,932 | - | 14,905 |
| Profit before tax | 594 | 1,067 | - | 1,661 |
| Segment assets | 9,558 | 10,166 | 22,627 | 42,351 |
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| Audited Year to 31 March 2009 | Audited Year to 31 March 2009 | Audited Year to 31 March 2009 | Audited Year to 31 March 2009 | |
| £000 | £000 | £000 | £'000 | |
| External revenue | 13,498 | 14,687 | - | 28,185 |
| Profit/(loss) before tax | 784 | 1,632 | - | 2,416 |
| Segment assets | 8,797 | 5,524 | 24,198 | 38,519 |
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Reconciliation of reportable segment profit / (loss)
| Unaudited Six months to 30 September 2009 £000 | Unaudited Restated Six months to 30 September 2008 £000 | Audited Year to 31 March 2009 £000 | ||
| Total profit /(loss) for reportable segments | 605 | 1,661 | 2,416 | |
| Other loss | (135) | (62) | (1,160) | |
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| 470 | 1,599 | 1,256 | ||
| Unallocated amounts: | ||||
| Amortisation | (559) | (559) | (1,119) | |
| Net foreign exchange gains/(losses) | 908 | (403) | (3,535) | |
| Unrealised gains/(losses) on derivatives | 677 | (3) | (877) | |
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| Consolidated profit/(loss) before income tax | 1,496 | 634 | (4,275) | |
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4 Exceptional items
Exceptional costs incurred in the period relate to the final redundancy costs associated with the Group's restructuring programme.
5 Discontinued operations
Discontinued operations relate to Mulberry Plastics Limited, the rump of the Trimplex business, which was disposed of in the year ended 31 March 2009.
6 Financial income and expenses
| | | Unaudited Six months to 30 September 2009 £000 | Unaudited Restated Six months to 30 September 2008 £000 | Audited Year to 31 March 2009 £000 |
| Financial income: | | | | |
| Interest income | | - | 59 | 72 |
| Gains on derivatives used to manage interest rate and foreign exchange risk | 677 | - | - | |
| | | | | |
| Financial income | | 677 | 59 | 72 |
| | | | | |
| Financial expenses: | | | | |
| Bank interest | | 649 | 680 | 1,460 |
| Deferred consideration interest | | 15 | 12 | 25 |
| Losses on derivatives used to manage interest rate and foreign exchange risk | - | 3 | 877 | |
| | | | | |
| Financial expenses | | 664 | 695 | 2,362 |
| | | | | |
| Financial income and expenses included within foreign exchange or exceptional items: | | | | |
| Net foreign exchange (gain)/loss | | (393) | 320 | 2,545 |
| | | | | |
| Exceptional items | | (393) | 320 | 2,545 |
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7 Taxation
The taxation charge is calculated by applying the directors' best estimate of the annual tax rate for the profit/(loss) for the period.
8 Dividends
The directors do not recommend the payment of an interim dividend (30 September 2008: nil).
9 Earnings per share
| Unaudited Six months to 30 September 2009 | Unaudited Restated Six months to 30 September 2008 | Audited Year to 31 March 2009 | |
| £000 | £000 | £000 | |
| Numerator | |||
| Profit/(loss) for the period from continuing operations | 1,281 | 190 | (3,579) |
| Profit/(loss) for the period from discontinued operations | - | - | (1,598) |
| Profit/(loss) for the period | 1,281 | 190 | (5,177) |
| Denominator | |||
| Weighted average number of shares used in basic EPS | 26,940,000 | 26,862,516 | 26,887,547 |
| Effect of employee share options | 13,463 | 134,076 | 138,041 |
| Weighted average number of shares used in diluted EPS | 26,953,463 | 26,996,592 | 27,025,588 |
| Basic earnings per share from continuing operations | 4.8p | 1.9p | (13.3)p |
| Diluted earnings per share from continuing operations | 4.8p | 1.9p | (13.2)p |
| Basic earnings per share (total) | 4.8p | 0.7p | (19.3)p |
| Diluted earnings per share (total) | 4.8p | 0.7p | (19.3)p |
The diluted loss per share has not been calculated due to the loss made in the year ended 31 March 2009.
10 Accounts
Copies of the interim accounts may be obtained from the Company Secretary at the Registered Office of the Company: St Mary's House, 42 Vicarage Crescent, London, SW11 3LD.