- Part 2: For the preceding part double click ID:nRSA7308Ra
Inter-segment pricing is determined on an arm's length basis. Segment results,
assets and liabilities include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to
acquire segment assets that are expected to be used for more than one period.
Geographical segmental analysis of revenue is shown by origin and destination
in the following two tables:
Segmental analysis by origin 2015 2014
£000 % £000 %
Gross sales revenue:
UK 20,806 47.5 20,803 49.9
North America 21,083 48.1 18,703 44.8
Australasia 1,905 4.4 2,201 5.3
Total Revenue 43,794 100.0 41,707 100.0
1. Segment information (CONTINUED)
Segmental analysis by destination:
2015 2014
£000 % £000 %
Gross sales revenue:
UK 8,043 18.4 8,223 19.7
Other European 7,045 16.1 6,486 15.6
North America 24,087 55.0 22,360 53.6
Africa 187 0.4 315 0.8
Australasia 1,709 3.9 2,057 4.9
Central America 148 0.3 112 0.3
Middle East 893 2.1 914 2.2
Far East 1,682 3.8 1,240 2.9
43,794 100.0 41,707 100.0
There are no customers that represent 10% or more of the Group's revenues.
2. SPECIAL ITEMS, ACQUISITION COSTS And Share based payment charges
In order for users of the financial statements to better understand the
underlying performance of the Group the Board have separately disclosed
transactions which by virtue of their size or incidence, are considered to be
one off in nature. In addition the charge for share based payments and
amortization of intangible assets acquired have also been separately
identified.
Special items include acquisition costs, abortive transaction costs, gains and
losses on the sale of properties and assets, exceptional costs relating to
reorganisation, redundancy and restructuring, legal disputes and
inventory,asset and intangibles impairments.
2015 2014
£000 £000
Operating costs
Abortive transaction costs - 128
Inventory write downs 268 -
Reorganisation and restructuring costs 157 -
Property disposals 193 -
Property write-downs 278 -
Other Special Items 896 128
Pensions credit (2,347) -
Acquisition costs 335 -
Share option costs 131 57
Amortisation of intangible assets acquired 27 -
During the year the Group incurred costs with regard to the acquisition of
TYKMA Inc. Property disposals in both the UK and US and the revaluation of
properties led to losses. Reorganisation and restructuring costs were
principally related to the integration of TYKMA Inc and the Electrox Laser
marking division.
The pension credit relates to liability reduction exercises undertaken by the
trustees of the main scheme including pensions increase exchange.
During the prior year the Group incurred costs with regard to the abortive
acquisition of the Group by Qinddao D&D Investment Group Co. Ltd. Costs were
also incurred with regard to the granting of share options.
3. Financial income and expense
2015 2014
£000 £000
Interest income 2 7
Interest on pensions surplus 857 827
Financial income 859 834
Bank overdraft and loan interest (174) (169)
Shareholder loan interest (238) (200)
Other loan interest (22) -
Other finance charges - (1)
Finance charges on finance leases (17) (18)
Amortisation of shareholder loan expenses (155) (134)
Financial expense (606) (522)
4. Taxation
2015 2014
£000 £000
Current tax:
Corporation tax at 21% (2014: 23%):
- current period - -
Overseas taxation:
- current period (339) (62)
Total current tax charge (339) (62)
Deferred taxation:
- current period (1,060) (400)
- prior period 74 (161)
Total deferred taxation charge (Note 13) (986) (561)
Taxation charged to the income statement (1,325) (623)
Tax reconciliation
The tax charge assessed for the period is higher than the standard rate of
corporation tax in the UK of 21% (2014: 23%). The differences are explained
below:
2015 2014
£000 % £000 %
Profit before tax 3,675 2,475
Profit before tax multiplied by the standard rate of corporation tax
in the UK of 21% (2014: 23%) 772 21.0 569 23.0
Effects of:
- expenses not deductible 252 6.9 152 6.1
- overseas tax rates 114 3.1 48 1.9
- pension fund surplus taxed at higher rate 454 12.3 100 4.0
- property disposals - - - -
- deferred tax prior period adjustment (74) (2.0) 161 6.5
- (unrecognised losses utilised)/tax not recognised on losses (193) (5.2) (520) (21.0)
- impact of rate change - - 113 4.6
Taxation charged to the income statement 1,325 36.1 623 25.2
5. Earnings per share
The calculation of the basic earnings per share of 2.66p (2014: 2.19p) is
based on the earnings for the financial period attributable to the Parent
Company's shareholders of a profit of £2,383,000 (2014: £1,852,000) and on the
weighted average number of shares in issue during the period of 87,771,514
(2014: 84,430,346). At 28 March 2015, there were 9,900,000 (2014: 4,500,000)
potentially dilutive shares on option with a weighted average effect of
2,783,270 (2014: 1,553,045) shares giving a diluted profit per share of 2.58p
(2014: 2.15p)
2015 2014
Weighted average number of shares
Issued shares at start of period 84,430,346 84,256,091
Effect of shares issued in the year 3,341,168 174,255
Weighted average number of shares at end of period 87,771,514 84,430,346
£000 £000
Total post tax earnings 2,350 1,852
Share Option Costs 131 57
Pensions Interest (857) (827)
Amortisation of Shareholder loan expenses 155 134
Pensions credit (2,347) -
Amortisation of intangible assets acquired 27 -
Property sales and revaluation 462 -
Other special items 434 128
Acquisition costs 335 -
Associated Taxation 1,159 258
Underlying Earnings before tax 2,015 1,967
Underlying Earnings after tax 1,849 1,602
Underlying EPS 2.09p 1.90p
6. Cash and cash equivalents
2015 2014
£000 £000
Cash at bank 802 1,049
Short-term deposits 100 100
Cash and cash equivalents per statement of financial position and per cash flow statement 902 1,149
7. RECONCILIATION OF NET CASH FLOW TO NET DEBT
2015 2014
£000 £000
Increase in cash and cash equivalents (233) 211
Decrease in debt and finance leases (5,200) 14
Decrease in net debt from cash flows (5,433) 225
Net debt at beginning of period (5,308) (5,407)
Shareholder loan deferred costs 701 (126)
Cash and debt through acquisitions (697) -
Exchange effects on net funds (61) -
Net debt at end of period (10,798) (5,308)
8. Analysis of net DEBT
At At
30 March Exchange 28 March
2014 movement Other Cash flows 2015
£000 £000 £000 £000 £000
Cash at bank and in hand 1,049 (14) - (233) 802
Term deposits (included within cash and cash equivalents on the balance sheet) 100 - - - 100
1,149 (14) - (233) 902
Debt due within one year (3,881) (54) (697) 1,426 (3,206)
Debt due after one year - - - (1,539) (1,539)
Loan notes due after one year - - 912 (7,695) (6,783)
Shareholder loan (2,289) - (211) 2,500 -
Finance leases (287) 7 - 108 (172)
Total (5,308) (61) 4 (5,433) (10,798)
9. ACQUISITION
On 13 February 2015 the Group acquired 80%of the issued share capital of TYKMA
Inc., a US laser marking company. The provisional net assets at the date of
acquisition were as follows:
£000
Fair value of assets and liabilities acquired:
Intangible assets - Development costs 114
Plant and equipment 514
Inventories 610
Trade and other receivables 364
Cash and cash equivalents 218
Trade and other payables (534)
Current tax liabilities (19)
Deferred tax liabilities (140)
Loans and other borrowings (660)
Net Assets 467
Intangible assets identified 207
Fair value provisions identified (479)
Goodwill 7,144
Total Consideration 7,339
10 Statutory accounts
The Financial information set out in this preliminary announcement does not
constitute the company's Consolidated Financial Statements for the financial
years ended 28 March 2015 or 29 March 2014 but are derived from those
Financial Statements. Statutory Financial Statements for 2014 have been
delivered to the Registrar of Companies and those for 2015 will be delivered
following the company's AGM. The Auditors KPMG LLP have reported on those
financial statements. Their reports were unqualified, did not draw attention
to any matters by way of emphasis without qualifying their report and did not
contain statements under Section 498(2) or (3) of the Companies Act 2006 in
respect of the Financial Statements for 2015 or 2014.
The Statutory accounts are available on the Company's web site and will be
posted to shareholders who have requested a copy and thereafter by request to
the company's registered office.
This information is provided by RNS
The company news service from the London Stock Exchange