- Part 2: For the preceding part double click ID:nRSA5316Da
Inter-segment elimination/Unallocated costs - (14) (14) (1,306)
Total 100,538 - 100,538 9,143
£'000
Segmental operating result 9,143
Brand amortisation (268)
Total operating profit 8,875
Total operating profit
8,875
6. Finance expenses
Half year to Half year to Year to
31 December 31 December 30 June
2017 2016 2017
£'000 £'000 £'000
Finance costs - Bank overdrafts 11 12 39
- Revolving credit facility 73 48 93
84 60 132
- IAS 19 net pension scheme finance costs 250 343 620
334 403 752
403
752
7. Tax expense
Half year to 31 December 2017 Half year to 31 December 2016 Year to 30 June 2017
£'000 £'000 £'000
Current tax:
UK corporation tax 438 546 1,117
Overseas tax - - 11
Amounts over provided in previous years - - (22)
Total current tax 438 546 1,106
Deferred tax:
Origination and reversal of temporary differences 150 198 478
Amounts under provided in previous years - - 78
Rate change adjustment - (40) (79)
Total deferred tax 150 158 477
Total tax expense 588 704 1,583
588
704
1,583
Tax recognised in other comprehensive income:
Deferred tax:
Actuarial losses on pension schemes (238) (50) 152
Cash flow hedges 12 (4) 37
Tax (credited)/charged to other comprehensive income (226) (54) 189
Total tax charge in the statement of comprehensive income 362 650 1,772
650
1,772
8. Dividends
The directors have approved an interim dividend per share of 2.95p (2016/17:
2.85p) which will be paid on 6 April 2018 to shareholders on the register at
the close of business on 2 March 2018. The cash cost of the dividend is
expected to be £1.1 million. In accordance with IFRS accounting requirements,
as the dividend was approved after the balance sheet date, it has not been
accrued in the interim consolidated financial statements. A final dividend per
share of 4.3p in respect of the 2016/17 financial year was paid at a cash cost
of £1.5 million during the six months to 31 December 2017.
9. Share Based Payments
During the period the group awarded 210,000 options (2016/17: 120,000) under
the Executive Share Option Scheme ("ESOS"). These options have an exercise
price of 173.5p and require certain criteria to be fulfilled before vesting.
20,000 existing options (2016/17: 40,000) were exercised during the period and
40,000 existing options lapsed (2016/17: 50,000).
Total awards granted under the group's Long Term Incentive Plans ("LTIP")
amounted to 282,629 (2016/17: 256,299). LTIP awards have no exercise price but
are dependent on certain vesting criteria being met. No existing LTIP awards
were exercised during the period (2016/17: 154,661) and no existing LTIP
awards lapsed (2016/17: 103,008).
10. Earnings per share
Basic earnings per share is calculated by dividing the net profit for the
period attributable to ordinary equity shareholders of the parent by the
weighted average number of ordinary shares in issue during the period.
Diluted earnings per share is calculated by dividing the net profit
attributable to ordinary equity shareholders of the parent by the weighted
average number of ordinary shares in issue during the period, after allowing
for the exercise of outstanding share options. The following sets out the
income and share data used in the basic and diluted earnings per share
calculations:
Half year to 31 December 2017 Half year to 31 December 2016 Year to30 June 2017
£'000 £'000 £'000
Net profit attributable to equity holders of the parent 2,451 2,901 6,540
6,540
000s 000s 000s
Basic weighted average number of shares 35,772 35,577 35,663
Dilutive potential ordinary shares - employee share options 694 535 556
Diluted weighted average number of shares 36,466 36,112 36,219
Calculation of underlying earnings per share:
Half year to 31 December 2017 Half year to 31 December 2016 Year to30 June 2017
£'000 £'000 £'000
Reported profit before taxation 3,039 3,605 8,123
Add: Brand amortisation 126 134 268
Add: IAS 19 net pension scheme finance costs 250 343 620
Add: Loss on disposal of the SCP business 218 - -
Less: Profit on disposal of available-for-sale assets (426) - -
Add: Timloc relocation costs 323 - -
Underlying profit before taxation 3,530 4,082 9,011
Tax at underlying group tax rate of 19.8% (2016/17 first half year: 20.6%; full year: 20.6%) (699) (841) (1,856)
Underlying profit after tax 2,831 3,241 7,155
Weighted average number of shares 35,772 35,577 35,663
Underlying earnings per share 7.9p 9.1p 20.1p
Underlying earnings per share
7.9p
9.1p
20.1p
11. Movement in cash net of borrowings
Cash and bank overdrafts Bankloans Net cash
£'000 £'000 £'000
At 1 July 2016 10,540 (1,908) 8,632
Cash flow movements (4,472) 1,000 (3,472)
Non-cash movements - (15) (15)
Effect of foreign exchange rates 41 - 41
At 31 December 2016 6,109 (923) 5,186
5,186
Cash and bank overdrafts Bankloans Net cash
£'000 £'000 £'000
At 1 July 2017 9,014 (2,938) 6,076
Cash flow movements (3,659) - (3,659)
Non-cash movements - (15) (15)
Effect of foreign exchange rates (11) - (11)
At 31 December 2017 5,344 (2,953) 2,391
2,391
12. Related party disclosure
The group has a related party relationship with its directors and with its UK
pension schemes. There has been no material change in the nature of the
related party transactions described in the Report and Accounts 2017. Related
party information is disclosed in note 29 of that document.
13. Post balance sheet event
The group acquired Wade International Limited, a specialised drainage
business, on 31 January 2018 for £8.0m on a cash/debt free basis. Further
detail is given in the Chief Executive's interim statement.
Responsibility Statement
The Directors confirm that, to the best of their knowledge:
a) the condensed consolidated interim financial statements have been prepared
in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU;
and
b) the interim management report includes a fair review of the information
required by:
· DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the year; and
· DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the group during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
On behalf of the Board
G P Hooper A Magson
Chief Executive Group
Finance Director
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