Volvere plc
("Volvere" or the "Group")
Interim Results for the six months ended 30 June 2017
Volvere plc (AIM: VLE), the growth and turnaround investment company, announces its unaudited Interim Results for the six months ended 30 June 2017.
Highlights
million except where stated
Six months ended
Year ended
30 June 2017
30 June 2016
31 December 2016
Group revenue from continuing businesses
18.5
14.5
33.0
Group profit before tax from continuing operations
0.76
0.25
1.98
As at 30 June 2017
As at 30 June 2016
As at 31 December 2016
Consolidated net assets per share (excluding non-controlling interests)(1)
6.23
5.76
6.17
Group net assets
26.9
24.7
26.6
Cash and marketable securities
20.5
18.5
20.0
Impetus Automotive delivered a very strong performance. Profit before tax and intra-group management and interest charges(2) of 1.54 million (30 June 2016: 0.52 million) on revenue of 12.16 million (30 June 2016: 8.16 million). Profit before tax was 1.37 million (30 June 2016: profit 0.34 million) - with the difference being intra-group management and interest charges.
Shire Foods' performance was satisfactory and in line with expectations. Loss before tax and intra-group management and interest charges(2) of 0.24 million (30 June 2016: profit 0.13 million) on revenue of 6.28 million (30 June 2016: 6.19 million). Loss before tax was 0.25 million (30 June 2016: profit 0.1 million) - with the difference being intra-group management and interest charges.
Net assets per share growth continued, reaching new record high.
Balance sheet remains strong with high liquidity. Cash and marketable securities increased over prior comparable period by 2.0 million, to 20.5 million (up 0.5m compared to 31 December 2016).
Note
1 Based on the net assets attributable to owners of the parent company and the respective period end shares in issue (which were 4,075,958 at 30 June 2017 and 4,085,958 in both prior periods).
2 Profit before intra-group management and interest charges is considered to be a relevant and useful interpretation of the trading results of the business such that its performance can be understood on a basis which is independent of its ownership by the Group. Further information is included in the Chief Executive's statement and Financial review.
For further information:
Volvere plc
Jonathan Lander, CEO
Tel: +44 (0) 20 7634 9707
www.volvere.co.uk
N+1 Singer Aubrey Powell/Liz Yong
Tel: + 44 (0) 20 7496 3000
Chairman's Statement
I'm delighted to report a solid set of results for the first half of 2017. Trading in Impetus Automotive was very strong, with performance in Shire in line with our expectations. Net assets per share have once again risen to a new record of 6.23* (30 June 2016: 5.76, 31 December 2016: 6.17). We look forward to continuing progress in the remainder of 2017.
David Buchler
Chairman
21 September 2017
*Net assets attributable to owners of the parent company divided by total number of ordinary shares outstanding at the reporting date
(less those held in treasury) - see note 8.
Chief Executive's Statement
An excellent performance in our automotive consulting business, Impetus, was the defining event of the first half of 2017. Shire and SDS met our expectations for the period, although they did not perform as well as in the same period in 2016. The performance of each of the Group's segments is set out below.
Food manufacturing
This segment comprises Shire Foods Limited ("Shire"), the Group's 80%-owned frozen pie and pasty manufacturing business, which was acquired in 2011. The company employs approximately 110 people and is based in Leamington Spa, United Kingdom.
The depreciation of sterling following the Brexit vote in June 2016 led to a rise in raw material prices in the second half in 2016, which reduced Shire's operating margin. As expected, Shire continued to suffer from margin pressure in the first half of 2017. Although first-half revenues of 6.28 million were in fact just ahead of the same period in 2016, there was a loss before tax and intra-Group management and interest charges** of 0.24 million (30 June 2016: 6.19 million and profit 0.13 million; 31 December 2016 15.19 million, profit 1.15 million). Loss before tax was 0.25 million (30 June 2016: profit 0.1 million, 31 December 2016: profit 0.91 million) - with the difference being intra-group interest and management charges. Shire's revenues are weighted towards the colder winter months, affecting the timing of profitability. We therefore expect that Shire's performance will improve in the second half of 2017.
In 2017 Shire successfully introduced new product with existing customers as part of the strategy to widen its product offering. In addition, we remain committed to winning new accounts in both retail and foodservice. Shire remains capable of delivering more both operationally and financially and we are continually looking at ways to utilise manufacturing capacity more efficiently.
Automotive Consulting
This segment comprises Impetus Automotive Limited ("Impetus"), which was acquired in March 2015 and is now approximately 83%-owned by the Group. Impetus offers services to improve the effectiveness of the sales and after-sales networks of automotive manufacturers, including the provision of outsourced training services, as well as providing research-based industry insight. The company employs approximately 400 people and is headquartered in Warwick, United Kingdom.
For the 6 months to 30 June 2017 revenues and profit before tax and intra-Group interest and management charges** were 12.16 million and 1.54 million respectively (30 June 2016: 8.16 million, profit 0.52 million; year to 31 December 2016: 17.37 million, profit 1.49 million). Profit before tax was 1.37 million (30 June 2016: 0.34 million, year to 31 December 2016: 1.11 million) - with the difference being intra-group interest and management charges.
The increased revenue and profit compared to 2016 reflects the underlying growth in Impetus's business, as well as the commencement in April of a single large contract to operate a vehicle manufacturer's training centre. We have successfully managed the transition of a large number of staff from the previous supplier under that contract and, in conjunction with the client, are part way through a process of improving both the operational performance and measurement criteria relating to training activities.
Changing vehicle technology means that the pace of change in the automotive sector is significant and we think this will present opportunities for Impetus as clients work with us to refine their distribution and after-sales strategies.
Security solutions
Sira Defence and Security Limited ("SDS"), our security solutions business delivered a satisfactory performance, with revenue of 0.1 million (30 June 2016: 0.17 million, 31 December 2016: 0.38 million). As a consequence of the reduced revenues, the business made a small loss before tax of 0.03 million (30 June 2016: profit 0.06 million, year to 31 December 2016: 0.16 million).
Further segmental information is set out in the financial review below and in note 2.
Purchase of own shares
During the period the Group acquired 10,000 shares for treasury for a total consideration of 0.05 million. The aggregate cost of shares purchased as of 30 June 2017 totals 5.99 million.
Acquisitions and future strategy
Deal flow was relatively subdued during the first half of 2017 although in the second quarter there were some signs of increased distress in those companies dependent upon imported goods and in consumer-facing businesses such as in the casual dining sector. The challenge, as ever, is to determine which opportunities are capable of turnaround and those which are more realistically best avoided.
Our existing portfolio is well placed to adapt to a changing U.K. economy, but the dedication and commitment of the management and staff at Shire, Impetus and SDS, is a prerequisite to ensuring continued growth. I am very grateful for their support and confidence in us.
As a Group, Volvere and its team are strong and we are well placed to capitalise on further opportunities as they arise.
Jonathan Lander
Chief Executive
21 September 2017
**Profit before intra-Group management and interest charges is considered to be a relevant and useful interpretation of the trading results of the business such that its performance can be understood on a basis which is independent of its ownership by the Group.
Financial Review
This financial review covers the Group's performance during the period ended 30 June 2017. It should be read in conjunction with the Chairman's and Chief Executive's Statements.
Overview
The Group's revenue from continuing operations for the period was 18.54 million compared to 14.54 million for the period to 30 June 2016 (31 December 2016: 32.96 million). The increase in the first half of 2017 is due to growth in Impetus arising principally from the commencement of a large contract to provide training services from 1 April as well as growth in other areas of the business
Group profit before tax from continuing operations was 0.76 million (30 June 2016: 0.25 million, year to 31 December 2016: 1.98 million). The increase compared to the same period last year reflects the growth in Impetus, offset by reduced comparable results from Shire and SDS.
Further comment on each segment is set out below and detailed information about the Group's segments is set out in note 2 to these interim results, which should be read in conjunction with this financial review.
Automotive Consulting
Impetus has been a member of the Group since March 2015. A summary of its recent financial performance is set out in Table A below.
Table A
6 months to 30 June 2017
6 months to 30 June 2016
Year ended 31 December 2016
Year ended 31 December 2015(1)
000
000
000
000
Revenue
12,163
8,164
17,372
12,077
Profit before tax, Group interest and management charges(2)
1,536
522
1,485
583
Profit before tax(2)
1,369
335
1,114
304
(1) Reflects the period from acquisition on 25 March 2015 to 31 December 2015
(2) The difference between profit before tax and profit before tax, Group interest and management charges relates to Group interest and management charges
The revenue growth against the comparable period is due partly to the commencement of the contract noted above. However, combined other activities grew by just under 20% too, which was very pleasing. The combined effects of these significantly increased profitability by more than 1 million in the period.
During the period the Group charged Impetus 132,000 for management services and interest of 35,000 on Group loans. At the period end loans outstanding to the Group amounted to 1.24 million (30 June 2016: 1.27 million, 31 December 2016: 0.89 million), with the increase since the year end being due principally to the working capital requirements associated with revenue growth. At the date of this report, loans outstanding to the Group were 0.69 million, following net repayments of 0.55 million since 30 June.
Security solutions
The performance of SDS was below the prior comparable period, with lower revenue of 0.1 million (30 June 2016: 0.17 million, 31 December 2016: 0.38 million). As a result of the reduced revenue, SDS made a small loss before tax of 0.03 million (30 June 2016: profit 0.06 million, 31 December 2016: profit 0.16 million). No Group loans were outstanding at the period end (30 June 2016: nil, 31 December 2016: nil).
Food manufacturing
A summary of Shire's recent financial performance is set out in Table B below.
Table B
6 months to 30 June 2017
6 months to 30 June 2016
Year ended 31 December 2016
Year ended 31 December 2015
Year ended 31 December 2014
000
000
000
000
000
Revenue
6,280
6,192
15,190
15,476
12,134
(Loss)/profit before tax, Group interest and management charges(1)
(237)
129
1,149
1,588
1,651
(Loss)/profit before tax(1)
(252)
97
909
1,165
1,651
(1) The difference between (loss)/profit before tax and (loss)/profit before tax, Group interest and management charges relates to Group interest and management charges
Shire's revenue was slightly ahead of the same period in 2016 but margins were lower partly because of the impact of sterling's devaluation. Although mitigation steps were taken to reduce the impact, by increasing prices and taking on further work from customers, this was effective on a progressive basis through the period.
At 30 June 2017, Shire's remaining Group loans had all been repaid. We expect to make further loans to Shire to meet its seasonal stock-build during the winter period, though at the date of this report no further such loans had been made. The equity investment and related intellectual property investments made of 0.53 million and 0.44 million respectively, brings the Group's total amount invested (excluding loans) to 0.97 million.
Shire's unaudited net assets at the period end amounted to 5.39 million (30 June 2016: 4.97 million; 31 December 2016: 5.72 million), of which 20% is attributable to non-controlling interests.
Investment revenues and other gains and losses
The Group purchased available-for-sale investments during the period as part of its treasury management policy but no income arose in the period. Income in the prior periods related to investments disposed of in December 2016.
Statement of financial position
Cash
Cash at the period end was 14.36 million (30 June 2016: 13.99 million, 31 December 2016: 20.06 million). The reduction in cash compared to the end of 2016 was due to the purchase of available-for-sale investments. Details of cash movements are shown in the consolidated statement of cash flows.
Available-for-sale investments
At the period end the Group had available-for-sale investments with a market value of 6.16 million (30 June 2016: 4.50 million, 31 December 2016: nil) with a base cost of 6.26 million. The unrealised loss has been dealt with through reserves, as set out in the consolidated statement of comprehensive income.
In line with the Group's treasury management policies and pending investment in other acquisitions, the Group continues to consider short-term investments where there is the opportunity for attractive returns.
Earnings per share and share capital
Total basic and diluted earnings per ordinary share (which are from continuing operations) were 8.2 pence (30 June 2016: 2.4 pence; year ended 31 December 2016: 32.6 pence).
Hedging
It is not the Group's policy to enter into derivative instruments to hedge interest rate or foreign exchange risk.
Risk factors
The Company and Group face a number of specific business risks that could affect the Company's or Group's success. The Company invests in distressed businesses and securities, which by their nature, often carry a higher degree of risk than those that are not distressed.
The Group's businesses are principally engaged in the provision of services that are dependent on the continued employment of the Group's employees and availability of suitable, profitable workload. Also, in the automotive consulting and food manufacturing segments, there is a dependency on a small number of customers and a reduction in the volume or range of products or services supplied to those customers or the loss of any one of them could impact the Group materially.
In addition, the food manufacturing segment is exposed to raw material and commodity cost increases and is dependent on the availability of credit facilities on appropriate terms from lenders and suppliers as well as being dependent on the reliability and performance of the plant and equipment used in the business. Failure or unreliability of key plant or equipment could be material in terms of lost production output or other losses arising from non-supply of products and there is the risk that any or all of the costs, timescales or the non-availability of funding required to enable rectification, would render the segment unviable, with a material effect on the Group.
Key performance indicators ("KPIs")
The Group uses key performance indicators suitable for the nature and size of the Group's businesses.
The key financial performance indicators are revenue, profit before tax and profit before tax, Group interest and management charges. The performance of the Group and the individual trading businesses against these KPIs, is outlined above and disclosed in note 2.
Internally, management uses a variety of non-financial KPIs as follows: in respect of the food manufacturing segment order intake, manufacturing output and sales are monitored weekly and reported monthly; order intake is reported monthly in respect of the security solutions segment; order intake and headcount are monitored in the Automotive Consulting segment.
Nick Lander
Chief Financial & Operating Officer
21 September 2017
Consolidated income statement
Note
6 months to 30 June 2017
6 months to 30 June 2016
Year ended 31 December 2016
'000
'000
'000
Continuing operations
Revenue
2
18,540
14,544
32,964
Cost of sales
(14,732)
(11,499)
(25,033)
Gross profit
3,808
3,045
7,931
Distribution costs
(431)
(389)
(932)
Administrative expenses
(2,569)
(2,462)
(5,065)
Operating profit
808
194
1,934
Investment revenues
-
95
186
Other gains and losses
3
-
-
(22)
Finance expense
4
(74)
(70)
(162)
Finance income
4
22
28
48
Profit before tax
756
247
1,984
Income tax expense
(290)
(82)
(311)
Profit for the period
466
165
1,673
Attributable to:
- Equity holders of the parent
333
99
1,334
- Non-controlling interests
7
133
66
339
466
165
1,673
Earnings per share
5
Total
- Basic
8.2p
2.4p
32.6p
- Diluted
8.2p
2.4p
32.6p
Consolidated statement of comprehensive income
6 months to 30 June 2017
6 months to 30 June 2016
Year ended 31 December 2016
'000
'000
'000
Profit for the period
466
165
1,673
Other comprehensive income (items that will be reclassified to profit or loss)
Fair value gains and losses on available-for-sale financial assets
- current period (losses)/gains
(102)
188
-
- reclassified to profit and loss
-
-
617
Foreign exchange (losses)/gains on retranslation of foreign operations
(5)
26
25
Other comprehensive income
(107)
214
642
Total comprehensive income for the period
359
379
2,315
Attributable to:
Equity holders of the parent
227
307
1,976
Non-controlling interests
132
72
339
359
379
2,315
Consolidated statement of changes in equity
Six months to 30 June 2017
Share capital '000
Share premium '000
Fair value reserve '000
Retained earnings '000
Total '000
Non-controlling interests '000
Total '000
Other comprehensive income
-
-
(102)
(4)
(106)
(1)
(107)
Profit for the period
-
-
-
333
333
133
466
Total comprehensive income for the period
-
-
(102)
329
227
132
359
Balance at 1 January
50
3,640
-
21,529
25,219
1,406
26,625
Transactions with owners:
Purchase of own shares
-
-
-
(54)
(54)
-
(54)
Total transactions with owners
-
-
-
(54)
(54)
-
(54)
Balance at 30 June
50
3,640
(102)
21,804
25,392
1,538
26,930
Six months to 30 June 2016
Share capital '000
Share premium '000
Fair value reserve '000
Retained earnings '000
Total '000
Non-controlling interests '000
Total '000
Other comprehensive income
-
-
188
20
208
6
214
Profit for the period
-
-
-
99
99
66
165
Total comprehensive income for the period
-
-
188
119
307
72
379
Balance at 1 January
50
3,640
(617)
20,175
23,248
1,046
24,294
Transactions with owners:
Increase in non-controlling interest
-
-
-
-
-
15
15
Total transactions with owners
-
-
-
-
-
15
15
Balance at 30 June
50
3,640
(429)
20,294
23,555
1,133
24,688
Year ended 31 December 2016
Share capital '000
Share premium '000
Fair value reserve '000
Retained earnings '000
Total '000
Non-controlling interests '000
Total '000
Other comprehensive income
-
-
-
25
25
-
25
Transfer to profit and loss on disposal
-
-
617
-
617
-
617
Profit for the year
-
-
-
1,334
1,334
339
1,673
Total comprehensive income for the year
-
-
617
1,359
1,976
339
2,315
Balance at 1 January
50
3,640
(617)
20,175
23,248
1,046
24,294
Transactions with owners:
Increase in non-controlling interest
-
-
-
(12)
(12)
21
9
Share based payments
-
-
-
7
7
-
7
Total transactions with owners
-
-
-
(5)
(5)
21
16
Balance at 31 December
50
3,640
-
21,529
25,219
1,406
26,625
Consolidated statement of financial position
30 June 2017
30 June 2016
31 December 2016
Note
'000
'000
'000
Assets
Non-current assets
Goodwill
380
380
380
Other intangible assets
24
55
39
Property, plant & equipment
5,559
5,549
5,572
Total non-current assets
5,963
5,984
5,991
Current assets
Inventories
2,396
1,808
2,082
Trade and other receivables
6,864
5,548
7,231
Cash and cash equivalents
14,361
13,986
20,063
Available for sale investments
6,156
4,501
-
Total current assets
29,777
25,843
29,376
Total assets
35,740
31,827
35,367
Liabilities
Current liabilities
Loans and other borrowings
(596)
(369)
(1,613)
Finance leases
(161)
(104)
(159)
Trade and other payables
(5,565)
(4,333)
(4,431)
Tax payable
(266)
-
(184)
Total current liabilities
(6,588)
(4,806)
(6,387)
Non-current liabilities
Loans and other borrowings
(1,401)
(1,497)
(1,448)
Finance leases
(361)
(398)
(442)
Total non-current liabilities
(1,762)
(1,895)
(1,890)
Total liabilities
(8,350)
(6,701)
(8,277)
Provisions - deferred tax
(376)
(329)
(376)
Provisions - lease incentive
(84)
(109)
(89)
NET ASSETS
26,930
24,688
26,625
Equity
Share capital
50
50
50
Share premium account
3,640
3,640
3,640
Fair value reserve
(102)
(429)
-
Retained earnings
21,804
20,294
21,529
Capital and reserves attributable to equity holders of the Company
25,392
23,555
25,219
Non-controlling interests
7
1,538
1,133
1,406
TOTAL EQUITY
26,930
24,688
26,625
Consolidated statement of cash flows
6 months to 30 June 2017
6 months to 30 June 2017
6 months to 30 June 2016
6 months to 30 June 2016
Year ended 31 December 2016
Year ended 31 December 2016
Note
'000
'000
'000
'000
'000
'000
Profit for the period from continuing operations
466
165
1,673
Adjustments for:
Investment revenues
-
(95)
(186)
Other gains and losses
3
-
-
22
Finance expense
4
74
70
162
Finance income
4
(22)
(28)
(48)
Depreciation
228
220
436
Amortisation of intangible assets
16
16
32
Foreign exchange differences
(6)
-
(7)
Loss on disposal of property, plant and equipment
7
61
62
Share-based payment expense
6
-
10
7
Income tax expense
290
82
311
587
336
791
Operating cash flows before movements in working capital
1,053
501
2,464
Decrease in trade and other receivables
368
2,183
100
Increase in trade and other payables
1,127
112
275
Increase in inventories
(314)
(702)
(976)
Tax paid
(208)
-
(82)
Cash generated from operations
2,026
2,094
1,781
Investing activities
Proceeds from sale of discontinued operations net of cash sold
-
385
784
Purchase of available-for-sale investments
(6,258)
-
-
Income from available-for-sale investments
-
95
186
Disposal of available-for-sale investments
-
-
4,908
Purchase of property, plant and equipment
(222)
(81)
(164)
Disposal of property, plant and equipment
-
25
25
Interest received
22
28
49
Net cash generated from/(used by) investing activities
(6,458)
452
5,788
Financing activities
Interest paid
(74)
(70)
(162)
Purchase of own shares (treasury shares)
8
(54)
-
-
(Repayment of)/net new borrowings
(1,143)
(519)
620
Issue of shares (by subsidiary)
-
-
9
Net cash used by financing activities
(1,271)
(589)
467
Net (decrease)/increase in cash
(5,703)
1,957
8,036
Cash at beginning of period
20,063
11,967
11,967
Foreign exchange revaluation of opening cash
1
62
60
Cash at end of period
14,361
13,986
20,063
Volvere plc
Notes forming part of the unaudited interim results for the period ended 30 June 2017
1 Financial information
The financial information for the period ended 30 June 2017 and the comparative figures for the period ended 30 June 2016 have not been reviewed or audited by the Group's auditors and have been prepared on the basis of the accounting policies adopted by the Group under IFRS. The same accounting policies and methods of computation are followed in the interim financial report as published by the Company on 25 May 2017 in its annual financial statements, which are available on the Company's website at www.volvere.co.uk.
The comparative figures for the year ended 31 December 2016 have been prepared under IFRS. They do not constitute statutory accounts as defined by the Companies Act 2006. The accounts for the 12 months ended 31 December 2016 received an unmodified auditor's report and have been filed with the Registrar of Companies.
Copies of this statement will be available to members of the public at the Company's registered office: Warnford Court, 29 Throgmorton Street, London EC2N 2AT and on its website www.volvere.co.uk.
2 Operating segments
Analysis by business segment (excluding intra-Group interest and management charges and balances):
Analysis by business segment:
Period ended 30 June 2017
Automotive consulting '000
Security solutions '000
Food manufacturing '000
Investing and management services '000
Total continuing '000
Discontinued '000
Total '000
Revenue
12,163
97
6,280
-
18,540
-
18,540
Profit/(loss) before tax(1)
1,536
(25)
(237)
(518)
756
-
756
Period ended 30 June 2016
Automotive consulting '000
Security solutions '000
Food manufacturing '000
Investing and management services '000
Total continuing '000
Discontinued '000
Total '000
Revenue
8,164
168
6,192
20
14,544
-
14,544
Profit/(loss) before tax(1)
521
55
129
(458)
247
-
247
Year ended 31 December 2016
Automotive consulting '000
Security solutions '000
Food manufacturing '000
Investing and management services '000
Total continuing '000
Discontinued '000
Total '000
Revenue
17,372
382
15,190
20
32,964
-
32,964
Profit/(loss) before tax(1)
1,485
163
1,149
(813)
1,984
-
1,984
As at 30 June 2017
Automotive consulting '000
Security solutions '000
Food manufacturing '000
Investing and management services '000
Total continuing '000
Discontinued '000
Total '000
Assets
7,411
214
9,670
18,445
35,740
-
35,740
Liabilities/provisions
(4,054)
(246)
(4,278)
(232)
(8,810)
-
(8,810)
Net assets(2)
3,357
(32)
5,392
18,213
26,930
-
26,930
As at 30 June 2016
Automotive consulting '000
Security solutions '000
Food manufacturing '000
Investing and management services '000
Total continuing '000
Discontinued '000
Total '000
Assets
4,388
242
8,925
18,272
31,827
-
31,827
Liabilities/provisions
(2,746)
(202)
(3,955)
(236)
(7,139)
-
(7,139)
Net assets(2)
1,642
40
4,970
18,036
24,688
-
24,688
As at 31 December 2016
Automotive consulting '000
Security solutions '000
Food manufacturing '000
Investing and management services '000
Total continuing '000
Discontinued '000
Total '000
Assets
4,834
207
11,136
19,190
35,367
-
35,367
Liabilities/provisions
(2,895)
(209)
(5,412)
(226)
(8,742)
-
(8,742)
Net assets(2)
1,939
(2)
5,724
18,964
26,625
-
26,625
(1) stated before intra-Group interest and management charges (2) assets and liabilities stated excluding intra-Group balances
Six months to 30 June 2017
Automotive consulting '000
Security solutions '000
Food manufacturing '000
Investing and management services '000
Total continuing '000
Discontinued '000
Total '000
Capital spend
9
7
206
-
222
-
222
Depreciation
20
-
208
-
228
-
228
Amortisation/Impairment
16
-
-
-
16
-
16
Interest income (non-Group)
-
-
-
22
22
-
22
Interest expense (non-Group)
20
-
54
-
74
-
74
Tax expense
290
-
-
-
290
-
290
Six months to 30 June 2016
Automotive consulting '000
Security solutions '000
Food manufacturing '000
Investing and management services '000
Total continuing '000
Discontinued '000
Total '000
Capital spend
24
-
57
-
81
-
81
Depreciation
21
-
198
1
220
-
220
Amortisation/Impairment
16
-
-
-
16
-
16
Interest income (non-Group)
-
-
-
28
28
-
28
Interest expense (non-Group)
17
-
53
-
70
-
70
Tax expense
82
-
-
-
82
-
82
Year ended 31 December 2016
Automotive consulting '000
Security solutions '000
Food manufacturing '000
Investing and management services '000
Total continuing '000
Discontinued '000
Total '000
Capital spend
35
-
287
-
322
-
322
Depreciation
45
-
390
1
436
-
436
Amortisation/Impairment
32
-
-
-
32
-
32
Interest income (non-Group)
-
-
-
48
48
-
48
Interest expense (non-Group)
41
-
121
-
162
-
162
Tax expense
175
-
136
-
311
-
311
Geographical analysis:
External revenue by location of customers
Non-current assets by location of assets
6 months to 30 June 2017
6 months to 30 June 2016
Year ended 31 December 2016
30 June 2017
30 June 2016
31 December 2016
'000
'000
'000
'000
'000
'000
UK
16,249
12,718
29,064
5,963
5,984
5,991
Rest of Europe
1,557
1,106
2,612
-
-
-
Other
734
720
1,288
-
-
-
18,540
14,544
32,964
5,963
5,984
5,991
3 Other gains and losses
The Company's unrealised treasury investment losses at the end of the period amounted 102,000 and these have been dealt with through other comprehensive income. In the prior comparable period a reversal of unrealised treasury investment losses occurred, giving rise to an unrealised gain of 188,000. This was dealt with through reserves, as set out in the consolidated statement of comprehensive income.
4 Finance expense/income
The Group's finance expense relates to the debt servicing costs in the Group's subsidiaries, Shire Foods Limited and Impetus Automotive Limited, offset by interest earned on the Group's cash deposits.
5 Earnings per share
The calculation of the basic and diluted loss per share is based on the following data:
6 months to 30 June 2017 '000
6 months to 30 June 2016 '000
Year ended 31 December 2016 '000
Earnings for the purposes of earnings per share:
From continuing operations
333
99
1,334
From discontinued operations
-
-
-
Total
333
99
1,334
No.
No.
Weighted average number of ordinary shares for the purposes of earnings per share:
Weighted average number of ordinary shares in issue
4,080,323
4,085,958
4,085,958
Dilutive effect of potential ordinary shares
-
-
-
Weighted average number of ordinary shares for diluted EPS
4,080,323
4,085,958
4,085,958
There were no outstanding share options in issue at the period end (30 June 2016: nil; 31 December 2016: nil).
6 Share-based payment
During the prior period the Group's subsidiary, Impetus Automotive Limited, issued shares to certain management of that business. An independent valuation of the shares issued was undertaken and the share-based payment charge reflects that valuation. The issue of shares in Impetus resulted in an increase in non-controlling interests, which are set out in note 7.
7 Non-controlling interests
The non-controlling interests of 1.54 million relate to the net assets attributable to the shares not held by the Group at 30 June 2017 in the following subsidiary undertakings:
30 June 2017 '000
30 June 2016 '000
31 December 2016 '000
NMT Group Limited
73
74
74
Shire Foods Limited
1,077
992
1,127
Impetus Automotive Limited
388
67
205
1,538
1,133
1,406
The Group now owns approximately 83% (previously 79%) of Impetus, following the cancellation of certain management shares during the second half of 2016.
8 Purchase of own shares
The Company acquired 10,000 of its own Ordinary shares during the period (30 June and 31 December 2016: nil) for a consideration of 54,000. For reference, the total number of Ordinary shares held in treasury is 2,131,116 and the number of shares in issue, excluding treasury shares, at the period end was 4,075,958 (30 June and 31 December 2016: 4,085,958).
9 Dividend
The Board is not recommending the payment of an interim dividend for the period ended 30 June 2017.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BIGDCUSDBGRG
