REG - 600 Group PLC - Half Yearly Report <Origin Href="QuoteRef">SIXH.L</Origin> - Part 2
26/11/2014 07:10
- Part 2: For the preceding part double click ID:nRSZ9738Xa
£000 £000
Current tax:
Corporation tax at 21% (2013: 23%): - - -
Overseas taxation:
- current period (98) (117) (62)
Total current tax charge (98) (117) (62)
Deferred taxation:
- current period (884) (134) (400)
- prior period (39) 109 (161)
Total deferred taxation charge (923) (25) (561)
Taxation (charged)/ credited to the income statement (1,021) (142) (623)
Following the enactment of legislation in the UK to reduce the corporation tax
rate from 23% to 20% from 1 April 2015, the effective tax rate in this period
includes the impact on the income statement of calculating the UK deferred tax
balances at the lower UK corporation tax rate.
7. Earnings per share
The calculation of the basic earnings per share of 2.49p (2013: 0.95p) is
based on the earnings for the financial period attributable to the Parent
Company's shareholders of a profit of £2,143,000 (2012 £801,000) and on the
weighted average number of shares in issue during the period of 85,935,071
(2013: 84,368,806). At 27 September 2014, there were 9,900,000 (2013:
4,500,000) potentially dilutive shares on option and 11,595,000 share warrants
exercisable at 20p. The weighted average effect of these as at 27 September
2014 was 4,147,271 (2013: 1,276,504) giving a diluted earnings per share of
2.38p (2013: 0.94p).
.
27 September2014 28 September2013 29 March2014
Weighted average number of shares £000 £000 £000
Issued shares at start of period 84,430,346 84,256,091 84,256,091
Effect of shares issued in the period 1,504,725 112,715 174,255
Weighted average number of shares at end of period 85,935,071 84,368,806 84,430,346
Underlying earnings
Total post tax earnings 2,143 801 1,852
Special items and share based payment costs (2,123) 28 185
Pensions Interest (443) (421) (827)
Amortisation of Shareholder loan expenses 72 63 134
Associated Taxation 906 71 258
Underlying Earnings 555 542 1,602
Underlying Earnings Per Share 0.65p 0.64p 1.90p
8. INVESTMENTS
27 September2014 28 September2013 29 March2014
£000 £000 £000
Investment in ProPhotonix Limited ordinary shares 744 - -
Total Investments 744 - -
On 3 August 2014 the Company acquired 26.3% of the ordinary share capital of
ProPhotonix Limited through the issue of ordinary shares in the Company
representing 5.5% of the enlarged share capital of 600 Group Plc. The share
exchange was carried out following presentations with three London-based
institutional investors, each of whom indicated support for the exchange.
ProPhotonix Limited is AIM listed, although registered in Delaware, and
designs and manufactures LED arrays and laser diode modules in the UK and
Ireland. It has a strong base of technology and applications knowledge,
applicable to high growth sectors including niche industrial, security and
medical markets. We continue to engage with the board of Prophotonix in
constructive dialogue to promote closer co-operation.
The initial investment of £1.10m was adjusted down to a fair value of £0.74m
at 27 September 2014. The £0.36m write down was taken to the Statement of
comprehensive income and expense.
9. RECONCILIATION OF NET CASH FLOW TO NET DEBT
27 September2014 28 September2013 29 March2014
£000 £000 £000
Increase in cash and cash equivalents 78 302 211
Increase in debt and finance leases (1,438) (426) 14
Decrease /(Increase) in net debt from cash flows (1,360) (124) 225
Net debt at beginning of period (5,308) (5,407) (5,407)
Shareholder loan amortisation (69) (60) (126)
Exchange effects on net funds (15) (10) -
Net debt at end of period (6,752) (5,601) (5,308)
10. Analysis of net DEBT
At Exchange/ At
29 March Reserve 27 September
2014 movement Other Cash flows 2014
£000 £000 £000 £000 £000
Cash at bank and in hand 1.049 (7) 78 1,120
Short term deposits (included within cash and cash equivalents on the balance sheet) 100 - - - 100
1,149 (7) - 78 1,220
Debt due within one year (3,881) (11) - 1,855 (2,037)
Debt due after one year - - - (3,332) (3,332)
Shareholder loan (2,289) - (69) - (2,358)
Finance leases (287) 3 - 39 (245)
Total (5,308) (15) (69) (1,360) (6,752)
11. 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 actuarial valuation of the
UK scheme to 31 March 2013 was agreed with the Trustees in October 2013. The
Technical Provisions deficit of the UK scheme at 31 March 2013 represented a
funding level of 88.9% and the recovery plan agreed with the Trustees based
upon the updated deficit at 30 September 2013 of £19.5m assumes this deficit
will be eliminated by a 1% outperformance of the scheme assets against the 3%
gilt yield discount rate assumed in the valuation over a 14 year period, with
the Company again not required to make any deficit contributions.
Value of UK and USA scheme assets and liabilities for the purposes of IAS 19 27 September2014 28 September2013 29 March2014
£000 £000 £000
Opening Fair value of schemes assets 196,419 204,214 204,214
Experience adjustments in the period 7,100 (10,400) (7,723)
Closing Fair value of schemes assets 203,519 193,814 196,491
Opening present value of schemes liabilities 177,509 186,109 186,109
Experience adjustments in the period 8,583 (10,849) (8,600)
Closing present value of schemes liabilities 186,092 175,260 177,509
Surplus recognised under IAS 19 17,427 18,554 18,982
The principal assumptions used for the purpose of the IAS 19 valuation for the
UK scheme compared to the 2014 year end were as follows:
27 September2014 29 March2014
UK scheme UK scheme
% p.a. % p.a.
Inflation under RPI 3.25 3.20
Inflation under CPI 2.05 2.00
Rate of increase to pensions in payment - LPI 5% 3.15 3.10
Discount rate for scheme liabilities and return on assets 4.00 4.50
12. 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 27 September2014 28 September2013 29 March2014
£000 £000 £000
Original cost of investment in ProPhotonix Limited 1,102 - -
Fair value adjustment (358) - -
Fair value of investment in ProPhotonix Limited 744 - --
Further information on this investment and the fair value adjustment can be
found in the Investments note and within the Chairman's statement.
13. Principal Risks and Uncertainties
The principal risks and uncertainties affecting the Group remain those set out
in the 2014 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.
This information is provided by RNS
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