REG - 600 Group PLC - Half-year Report <Origin Href="QuoteRef">SIXH.L</Origin> - Part 2
06/12/2016 07:06
- Part 2: For the preceding part double click ID:nRSF0235Ra
£000 £000
Revenue from external customers 32,127 13,142 - 45,269
Inter-segment revenue - - - -
Total segment revenue 32,127 13,142 - 45,269
Less: inter-segment revenue - - -
Total revenue per statutory accounts 32,127 13,142 - 45,269
Operating Profit/(loss) before special Items 2,073 1,179 (896) 2,356
Special Items 282 (3,217) (590) (3,520)
Group profit/(loss) from operations 2,355 (2,033) (1,486) (1,164)
Other segmental information:
Reportable segment assets 26,630 5,970 44,172 76,772
Reportable segment liabilities (22,078) (3,048) (10,806) (35,932)
Intangible & Property, plant and equipment additions 605 1,214 - 1,819
Depreciation and amortisation 293 457 - 750
4. SPECIAL ITEMS
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,
amortisation of intangible assets acquired and non cash pension transactions
have also been separately identified.
Special items include acquisition 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.
1 October 2016 26 September2015 2 April2016
£000 £000 £000
Items included in operating profit:
Pension credit - (934) (940)
Reorganisation ,restructuring and redundancy costs - 487 1,729
Impairment of intangible assets - - 2,390
Acquisition costs - - 197
Share option costs 29 38 64
Amortisation of intangible assets acquired 20 57 80
49 (352) 1,389
Items included in financial income/(expense):
Pensions interest on surplus (750) (580) (1,171)
Amortisation of loan note expenses 82 70 150
(668) (510) (1,021)
Included in contingent consideration settlement:
TYKMA deferred consideration settlement - - (2,032)
5. Financial income and expensE
1 October 2016 26 September2015 2 April2016
£000 £000 £000
Interest income 1 9 10
Interest on Pension surplus 750 580 1,171
Financial income 751 589 1,181
Bank overdraft and loan interest (133) (98) (155)
Loan note interest (340) (322) (721)
Finance charges on finance leases (6) (6) (14)
Amortisation of loan note costs (82) (70) (150)
Financial expense (561) (496) (1,040)
6. Taxation
1 October2016 26 September2015 2 April2016
£000 £000 £000
Current tax:
Corporation tax at 19% (2015: 20%): - - -
Overseas taxation:
- current period (20) (13) 53
Total current tax charge (20) (13) 53
Deferred taxation:
- current period (264) (484) 79
- prior period - - 5
Total deferred taxation charge (264) (484) 84
Taxation charged to the income statement (284) (497) 137
7. Earnings per share
The calculation of the basic earnings per share of 1.05p (2014: 2.49p) is
based on the earnings for the financial period attributable to the Parent
Company's shareholders of a profit of £1,091,000 (2014 £1,101,000) and on the
weighted average number of shares in issue during the period of 104,357,957
(2015: 90,801,638). At 1 October 2016, there were 6,650,000 (2015: 6,150,000)
potentially dilutive shares on option and 43,950,000 (2015: 43,950,000) share
warrants exercisable at 20p. The weighted average effect of these as at 1
October 2016 was nil (2015: 791,000) giving a diluted earnings per share of
1.05p (2015: 1.20p).
.
1 October2016 26 September2015 2 April2016
Weighted average number of shares Shares Shares Shares
Issued shares at start of period 104, 357,957 89,607,957 89,607,957
Effect of shares issued in the period - 1,193,681 2,076,146
Weighted average number of shares at end of period 104,357,957 90,801,638 91,684,103
1 October2016 26 September2015 2 April2016
£000 £000 £000
Underlying earnings
Total post tax earnings 1,091 1,116 1,146
Share option costs 29 38 64
Pensions Interest (750) (580) (1,171)
Amortisation of Shareholder loan expenses 82 70 150
Pensions credit (934) (940)
Credit on settling deferred consideration (2,032)
Impairment of intangible assets 2,390
Amortisation of intangible assets acquired 20 57 80
Other special items 487 1,729
Acquisition costs 197
Associated Taxation on special items 264 530 (72)
Underlying Earnings before tax 756 751 1,476
Underlying earnings after tax 736 784 1,541
Underlying Earnings Per Share 0.71p 0.85p 1.69p
8. RECONCILIATION OF NET CASH FLOW TO NET DEBT
1 October2016 26 September2015 2 April2016
£000 £000 £000
Increase/(decrease) in cash and cash equivalents 108 500 (148)
Increase in debt and finance leases (184) (1,835) (2,757)
Increase in net debt from cash flows (76) (1,335) (2,905)
Net debt at beginning of period (13,886) (10,798) (10,798)
Loan costs amortisation and adjustments (82) (33) (110)
Exchange effects on net funds (294) 23 (73)
Net debt at end of period (14,338) (12,143) (13,886)
9. Analysis of net DEBT
At Exchange/ At
2 April Reserve 1 October
2016 movement Other Cash flows 2016
£000 £000 £000 £000 £000
Cash at bank and in hand 665 72 108 845
Short term deposits (included within cash and cash equivalents on the balance sheet) 100 - - - 100
765 72 - 108 945
Debt due within one year (3,114) (219) - (2,388) (5,721)
Debt due after one year (3,596) (133) - 2,161 (1,568)
Loan Notes due after one year (7,699) - (82) - (7,781)
Finance leases (242) (14) - 43 (213)
Total (13,886) (294) (82) (76) (14,338)
10. Employee benefits
The Group has defined benefit pension schemes in the UK and USA. The assets of
these schemes are held in separate trustee-administered funds. The principal
scheme is the UK defined benefit plan.
The UK scheme was closed to future accrual of benefits at 31 March 2013. Any
deficit contributions required are determined by independent qualified
actuaries based upon triennial actuarial valuations in the UK and on annual
valuations in the US. There have been no deficit contributions made to the
schemes during the reported periods and the latest draft actuarial valuation
of the UK scheme to 31 March 2016 shows the scheme to be in a surplus of £2.2m
based on the Technical Provisions basis of valuation. Consequently it is
expected that agreement will be reached that there will continue to be no
requirement for any cash funding from the Company.
Value of UK and USA scheme assets and liabilities for the purposes of IAS 19 1 October2016 26 September2015 2 April2016
£000 £000 £000
Opening Fair value of schemes assets 220,208 230,046 230,046
Experience adjustments in the period 30,900 (17,600) (9,838)
Closing Fair value of schemes assets 251,108 212,446 220,208
Opening present value of schemes liabilities 179,271 195,754 195,754
Experience adjustments in the period 38,094 (18,749) (16,483)
Closing present value of schemes liabilities 217,365 177,005 179,271
Surplus recognised under IAS 19 33,743 35,441 40,937
10. EMPLOYEE BENEFITS (continued)
The principal assumptions used for the purpose of the IAS 19 valuation for the
UK scheme compared to the 2016 year end were as follows:
1 October2016 2 April2016
UK scheme UK scheme
% p.a. % p.a.
Inflation under RPI 3.05 2.85
Inflation under CPI 2.05 1.85
Rate of increase to pensions in payment - LPI 5% 2.95 2.80
Discount rate for scheme liabilities and return on assets 2.25 3.60
11. FAIR VALUE
The group considers that the carrying amount of the following financial assets
and financial liabilities are
a reasonable approximation of their fair value:
Trade and other receivables
Cash and cash equivalents
Trade and other payables
Loans and other borrowings
The investment in ProPhotonix Limited has been fair value adjusted as detailed
below:
Investments 1 October2016 26 September2015 2 April2016
£000 £000 £000
Opening cost of investment in ProPhotonix Limited 496 525 525
Fair value adjustment 606 (167) (29)
Fair value of investment in ProPhotonix Limited 1,102 358 496
Fair value is based on the quoted market price at 1 October 2016.
12. Principal Risks and Uncertainties
The principal risks and uncertainties affecting the Group remain those set out
in the 2016 Annual Report. Those which are most likely to impact the
performance of the Group in the remaining period of the current financial year
are the exposure to increased input costs, the dependence on a relatively
small number of key vendors in the supply chain and a downturn in its
customers' end markets particularly in North America and Europe.
This information is provided by RNS
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