REG - Adv Medical Soln Grp - Interim Results <Origin Href="QuoteRef">AMSU.L</Origin> - Part 2
13/09/2017 07:06
- Part 2: For the preceding part double click ID:nRSM5621Qa
(Audited)
Six months Six months Year
ended ended ended
30 June 2017 30 June 2016 31 December 2016
£'000 £'000 £'000
Earnings Earnings for the purposes of basic and diluted earnings per share being net profit attributable to equity holders of the parent 9,111 7,336 15,692
Number of shares '000 '000 '000
Weighted average number of ordinary shares for the purposes of basic earnings per share 210,838 209,271 209,815
Effect of dilutive potential ordinary shares: share options, deferred share bonus, LTIPs 2,942 3,006 2,778
Weighted average number of ordinary shares for the purposes of diluted earnings per share 213,780 212,277 212,593
Basic EPS is calculated by dividing the earnings attributable to ordinary
shareholders by the weighted average number of shares outstanding during the
period.
Diluted EPS is calculated on the same basis as basic EPS but with the further
adjustment to the weighted average shares in issue to reflect the effect of
all potentially dilutive share options. The number of potentially dilutive
share options is derived from the number of share options and awards granted
to employees where the exercise price is less than the average market price of
the Company's ordinary shares during the period.
4. Earnings per share continued
Adjusted earnings per share
Adjusted EPS is calculated after adding back exceptional items and
amortisation of acquired intangible assets and is based on earnings of:
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
Ended ended ended
30 June 2017 30 June 2016 31 December 2016
£'000 £'000 £'000
Earnings Earnings for the purposes of basic and diluted earnings per share being net profit attributable to equity holders of the parent 9,111 7,336 15,692
Exceptional items - 361 361
Amortisation of acquired intangible assets 94 122 242
Earnings excluding exceptional items and amortisation of acquired intangible assets 9,205 7,819 16,295
The denominators used are the same as those detailed above for both basic and
diluted earnings per share.
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
Ended ended ended
30 June 2017 30 June 2016 31 December 2016
pence pence pence
Adjusted basic EPS 4.37p 3.74p 7.77p
Adjusted diluted EPS 4.31p 3.68p 7.66p
The adjusted diluted EPS information is considered to provide a fairer
representation of the Group's trading performance.
5. Segment information
Segment results, assets and liabilities include items directly attributable to
a segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly investments and related revenue, corporate
assets, head office expenses, exceptional items, income tax assets and the
Group's external borrowings. These are the measures reported to the Group's
Chief Executive for the purposes of resource allocation and assessment of
segment performance.
Business segments
The principal activities of the business units are as follows. (Prior year
comparators have been re-presented following the Business Unit restructure).:
Branded
Selling, marketing and innovation of the Group's branded products either sold
directly by our sales teams or by distributors.
OEM
Distribution, marketing and innovation of the Group's products supplied to
medical device partners under their brands and the distribution of bulk
materials to medical device partners and convertors.
Segment information about these Business Units is presented below:
Six months ended 30 June 2017 Branded OEM Consolidated
(unaudited) £'000 £'000 £'000
Revenue 27,342 18,568 45,910
Result
Segment result 7,936 3,724 11,660
Unallocated expenses (248)
Profit from operations 11,412
Finance income 50
Finance costs (50)
Profit before tax 11,412
Tax (2,301)
Profit for the period 9,111
5. Segment information (continued)
At 30 June 2017(unaudited) Branded OEM Consolidated
Other information £'000 £'000 £'000
Capital additions:
Software intangibles 612 10 622
Development 271 100 371
Property, plant and equipment 591 652 1,243
Depreciation and amortisation (664) (787) (1,451)
Balance sheet
Assets
Segment assets 113,873 42,039 155,912
Unallocated assets 103
Consolidated total assets 156,015
Liabilities
Segment liabilities 10,153 6,857 17,010
Consolidated total liabilities 17,009
Re-presented six months ended 30 June 2016 Branded OEM Consolidated
(unaudited) £'000 £'000 £'000
Revenue 21,622 17,531 39,153
Result
Segment result 6,134 3,524 9,658
Unallocated expenses (644)
Profit from operations 9,014
Finance income 57
Finance costs (55)
Profit before tax 9,016
Tax (1,680)
Profit for the period 7,336
At 30 June 2016 (re-presented)(unaudited) Branded OEM Consolidated
Other information £'000 £'000 £'000
Capital additions:
Software intangibles 27 98 125
Development 97 52 149
Property, plant and equipment 708 283 991
Depreciation and amortisation (609) (813) (1,422)
Balance sheet
Assets
Segment assets 88,520 44,407 132,927
Unallocated assets 214
Consolidated total assets 133,141
Liabilities
Segment liabilities 10,425 7,643 18,068
Consolidated total liabilities 18,068
5. Segment information (continued)
Year ended 31 December 2016 (re-presented) Branded OEM Consolidated
(audited) £'000 £'000 £'000
Revenue 45,306 37,315 82,621
Result
Segment result 11,313 8,677 19,990
Unallocated expenses (885)
Profit from operations 19,105
Finance income 108
Finance costs (111)
Profit before tax 19,102
Tax (3,410)
Profit for the year 15,692
At 31 December 2016(audited) (re-presented) Branded OEM Consolidated
Other Information £'000 £'000 £'000
Capital additions:
Software intangibles 596 199 795
Development 157 102 259
Property, plant and equipment 1,105 418 1,523
Depreciation and amortisation (1,309) (1,600) (2,909)
Balance sheet
Assets 97,498 47,388 144,886
Segment assetsUnallocated assets 120
Consolidated total assets 145,006
Liabilities
Segment liabilities 12,020 7,458 19,478
Geographical segments
The Group operates in the UK, Germany, the Netherlands, the Czech Republic,
with a sales office located in Russia and a sales presence in the USA. In
presenting information on the basis of geographical segments, segment revenue
is based on the geographical location of customers. Segment assets are based
on the geographical location of the assets.
The following table provides an analysis of the Group's sales by geographical
market, irrespective of the origin of the goods or services, based upon
location of the Group's customers:
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2017 30 June 2016 31 December 2016
£'000 £'000 £'000
United Kingdom 7,650 8,926 17,457
Germany 9,853 8,421 18,345
Europe excluding United Kingdom and Germany 11,358 10,481 21,360
United States of America 16,082 10,660 23,505
Rest of World 967 665 1,954
45,910 39,153 82,621
5. Segment information (continued)
The following table provides an analysis of the Group's total assets by
geographical location.
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2017 30 June 2016 31 December 2016
£'000 £'000 £'000
United Kingdom 89,352 72,559 80,580
Germany 61,904 56,768 59,950
Europe excluding United Kingdom and Germany 4,197 3,597 3,962
United States of America 562 217 514
156,015 133,141 145,006
6. Financial Instruments' fair value disclosures
It is the policy of the Group to enter into forward foreign exchange contracts
to cover specific foreign currency payments and receipts.
The Group held the following financial instruments at fair value at 30 June
2017. The Group has no financial instruments with fair values that are
determined by reference to significant unobservable inputs i.e. those that
would be classified as level 3 in the fair value hierarchy, nor have there
been any transfers of assets or liabilities between levels of the fair value
hierarchy. There are no non-recurring fair value measurements.
The following table details the forward foreign currency contracts outstanding
as at the period end:
Ave. exchange rate Foreign currency Contract value Fair value
30 June 2017 31 Dec 2016 30 June 2017 31 Dec 2016 30 June 2017 31 Dec 2016 30 June 2017 31 Dec 2016
USD:£1 USD:£1 USD'000 USD'000 £'000 £'000 £'000 £'000
Cash flow hedges
Sell US dollars
Less than 3 months 1.405 1.467 5,750 5,250 4,091 3,579 (332) (673)
3 to 6 months 1.382 1.421 6,750 5,250 4,883 3,696 (296) (548)
7 to 12 months 1.317 1.423 23,700 10,500 17,990 7,377 (58) (1,079)
Over 12 months 1.301 1.319 2,000 22,200 1,537 16,829 19 (857)
38,200 43,200 28,501 31,481 (667) (3,157)
Ave. exchange rate Foreign currency Contract value Fair value
30 June 2017 31 Dec 2016 30 June 2017 31 Dec 2016 30 June 2017 31 Dec 2016 30 June 2017 31 Dec 2016
EUR:£1 EUR:£1 EUR'000 EUR'000 £'000 £'000 £'000 £'000
Cash flow hedges
Sell Euros
Less than 3 months 1.254 1.290 1,150 1,050 917 814 (96) (85)
3 to 6 months 1.237 1.263 1,350 1,250 1,092 990 (100) (73)
7 to 12 months Over 12 months 1.2321.137 1.2451.192 1,3502,550 2,5002,400 1,0962,244 2,0092,013 (100)(24) (146)(72)
6,400 7,200 5,349 5,826 (320) (376)
7. Exceptional items
During the six months ended 30 June 2017, the Group incurred exceptional items
of £nil (2016 H1: £361,000, for an aborted acquisition).
8. Taxation
The weighted average tax rate for the Group for the six month period ended 30
June 2017 was 21.35% (six months ended 30 June 2016: 22.5%, year ended 31
December 2016: 22.11%). The effective rate of current tax for the six months
ended 30 June 2017 was 20.2% (six months ended 30 June 2016: 18.6%, year ended
31 December 2016: 17.9%) after the application of patent box and research and
development tax relief, with some off-set for disallowable expenditure.
9. Dividends
(Unaudited) (Unaudited) (Audited)
Six months ended Six months ended Year ended
30 June 2017 30 June 2016 31 December 2016
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December 2015 of 0.55p per ordinary share - 1,150 1,150
Interim dividend for the year ended 31 December 2016 of 0.30p per ordinary share - - 633
Final dividend for the year ended 31 December 2016 of 0.62p per ordinary share 1,307 - -
1,307 1,150 1,783
10. Contingent liabilities
The Directors are not aware of any contingent liabilities faced by the Group
as at 30 June 2017 (30 June 2016: £nil, 31 December 2016: £nil).
11. Share capital
Share capital as at 30 June 2017 amounted to £10,606,000 (30 June 2016:
£10,499,000, 31 December 2016: £10,524,000). During the period the Group
issued 1,643,393 shares in respect of exercised share options, LTIPS and the
Deferred Share Bonus Scheme.
12. Going concern
In carrying out their duties in respect of going concern, the Directors have
carried out a review of the Group's financial position and cash flow forecasts
for the next 12 months. These have been based on a comprehensive review of
revenue, expenditure and cash flows, taking into account specific business
risks and the current economic environment.
With regards to the Group's financial position, it had cash and cash
equivalents at 30 June 2017 of £55.2 million and a five-year, £30 million,
multi-currency, revolving credit facility, obtained in December 2014, with an
accordion option under which AMS can request up to an additional £20 million
on the same terms. The credit facility is provided jointly by HSBC and The
Royal Bank of Scotland PLC. It is unsecured on the assets of the Group and is
currently undrawn.
While the current economic environment is uncertain, AMS operates in markets
whose demographics are favourable, underpinned by an increasing need for
products to treat chronic and acute wounds. Consequently, market growth is
predicted. The Group has a number of long-term contracts with customers across
different geographic regions and also with substantial financial resources,
ranging from government agencies through to global healthcare companies.
After taking the above into consideration, the Directors have reached the
conclusion that the Group is well placed to manage its business risks in the
current economic environment. Accordingly, they continue to adopt the going
concern basis in preparing the condensed consolidated financial statements.
13. Principal risks and uncertainties
Further detail concerning the principal risks affecting the business
activities of the Group is detailed on pages 40 and 41 of the Annual Report
and Accounts for the year ended 31 December 2016. There have been no
significant changes since the last annual report.
14. Seasonality of sales
There are no significant factors affecting the seasonality of sales between
the first and second half of the year.
15. Events after the balance sheet date
There has been no material event subsequent to the end of the interim
reporting period ended 30 June 2017.
16. Copies of the interim results
Copies of the interim results can be obtained from the Group's registered
office at Premier Park, 33 Road One, Winsford Industrial Estate, Winsford,
Cheshire, CW7 3RT and are available on our website "www.admedsol.com".
This information is provided by RNS
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