REG - 600 Group PLC - Half Yearly Report <Origin Href="QuoteRef">SIXH.L</Origin> - Part 2
02/12/2015 07:11
- Part 2: For the preceding part double click ID:nRSB6543Ha
(772) (235) 958
Group profit/(loss) from operations 4,896 (468) (1,006) 3,422
Other segmental information:
Reportable segment assets 29,443 6,622 35,432 71,497
Reportable segment liabilities (19,614) (2,619) (14,538) (36,771)
Intangible & Property, plant and equipment additions 919 353 - 1,272
Depreciation and amortisation 305 278 - 583
4. SPECIAL ITEMS and share based payment cost
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 option costs and
amortisation of intangible assets acquired 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 impairments and pension credits.
26 September2015 27 September2014 28 March2015
£000 £000 £000
Inventory write downs - - 268
Reorganisation ,restructuring and redundancy costs 487 - 157
Property disposals - - 193
Property write-downs - - 278
Acquisition costs - - 335
Share option costs 38 63 131
Amortisation of intangible assets acquired 57 - 27
Other Special Items 582 63 1,389
Pension credit (934) (2,186) (2,347)
Total Special Items (352) (2,123) (958)
5. Financial income and expensE
26 September2015 27 September2014 28 March2015
£000 £000 £000
Interest income 9 1 2
Interest on Pension surplus 580 443 857
Financial income 589 444 859
Bank overdraft and loan interest (98) (92) (196)
Loan note interest (322) (100) (238)
Finance charges on finance leases (6) (6) (17)
Amortisation of loan note costs (70) (72) (155)
Financial expense (496) (270) (606)
6. Taxation
26 September2015 27 September2014 28 March2015
£000 £000 £000
Current tax:
Corporation tax at 20% (2014: 21%): - - -
Overseas taxation:
- current period (13) (98) (339)
Total current tax charge (13) (98) (339)
Deferred taxation:
- current period (484) (884) (1,060)
- prior period - (39) 74
Total deferred taxation charge (484) (923) (986)
Taxation charged to the income statement (497) (1,021) (1,325)
7. Earnings per share
The calculation of the basic earnings per share of 1.21p (2014: 2.49p) is
based on the earnings for the financial period attributable to the Parent
Company's shareholders of a profit of £1,101,000 (2014 £2,143,000) and on the
weighted average number of shares in issue during the period of 90,801,638
(2014: 85,935,071). At 26 September 2015, there were 6,150,000 (2014:
9,900,000) potentially dilutive shares on option and 43,950,000 (2014:
11,595,000) share warrants exercisable at 20p. The weighted average effect of
these as at 26 September 2015 was 791,000 (2013: 4,147,271) giving a diluted
earnings per share of 1.20p (2014: 2.38p).
.
26 September2015 27 September2014 28 March2015
Weighted average number of shares Shares Shares Shares
Issued shares at start of period 89,607,957 84,430,346 84,430,346
Effect of shares issued in the period 1,193,681 1,504,725 3,341,168
Weighted average number of shares at end of period 90,801,638 85,935,071 87,771,514
26 September2015 27 September2014 28 March2015
£000 £000 £000
Underlying earnings
Total post tax earnings 1,116 2,143 2,350
Special items and share based payment costs (352) (2,123) (958)
Pensions Interest (580) (443) (857)
Amortisation of Shareholder loan expenses 70 72 155
Associated Taxation 530 906 1,159
Underlying Earnings before tax 751 670 2,015
Underlying earnings after tax 784 555 1,849
Underlying Earnings Per Share 0.85p 0.65p 2.09p
8. RECONCILIATION OF NET CASH FLOW TO NET DEBT
26 September2015 27 September2014 28 March2015
£000 £000 £000
Increase/(decrease) in cash and cash equivalents 500 78 (233)
Increase in debt and finance leases (1,835) (1,438) (5,200)
Increase in net debt from cash flows (1,335) (1,360) (5,423)
Net debt at beginning of period (10,798) (5,308) (5,308)
Loan costs amortisation and adjustments (33) (69) 701
Cash and debt through acquisitions - - (697)
Exchange effects on net funds 23 (15) (61)
Net debt at end of period (12,143) (6,752) (10,798)
9. Analysis of net DEBT
At Exchange/ At
28 March Reserve 26 September
2015 movement Other Cash flows 2015
£000 £000 £000 £000 £000
Cash at bank and in hand 802 (19) 500 1,283
Short term deposits (included within cash and cash equivalents on the balance sheet) 100 - - - 100
902 (19) - 500 1,383
Debt due within one year (3,206) 34 - 58 (3,114)
Debt due after one year (1,539) - - (967) (2,506)
Loan Notes due after one year (6,783) - (33) (806) (7,622)
Finance leases (172) 8 - (120) (284)
Total (10,798) 23 (33) (1,335) (12,143)
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 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 26 September2015 27 September2014 28 March2015
£000 £000 £000
Opening Fair value of schemes assets 230,046 196,419 196,491
Experience adjustments in the period (17,600) 7,100 33,555
Closing Fair value of schemes assets 212,446 203,519 230,046
Opening present value of schemes liabilities 195,754 177,509 177,509
Experience adjustments in the period (18,749) 8,583 18,245
Closing present value of schemes liabilities 177,005 186,092 195,754
Surplus recognised under IAS 19 35,441 17,427 34,292
10. EMPLOYEE BENEFITS (continued)
The principal assumptions used for the purpose of the IAS 19 valuation for the
UK scheme compared to the 2015 year end were as follows:
26 September2015 28 March2015
UK scheme UK scheme
% p.a. % p.a.
Inflation under RPI 2.90 2.85
Inflation under CPI 1.90 1.85
Rate of increase to pensions in payment - LPI 5% 2.85 2.80
Discount rate for scheme liabilities and return on assets 3.85 3.30
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 26 September2015 27 September2014 28 March2015
£000 £000 £000
Opening cost of investment in ProPhotonix Limited 525 1,147 1,147
Fair value adjustment (167) (403) (622)
Fair value of investment in ProPhotonix Limited 358 744 525
12. Principal Risks and Uncertainties
The principal risks and uncertainties affecting the Group remain those set out
in the 2015 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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