REG - Microgen PLC - Interim Results <Origin Href="QuoteRef">MCGN.L</Origin> - Part 2
18/07/2016 07:05
- Part 2: For the preceding part double click ID:nRSR3809Ea
4.9 4.0 5.6
Adjusted earnings per share
Basic 5.9 4.3 9.2
Diluted 5.6 4.1 8.5
To provide an indication of the underlying operating performance the adjusted
earnings per share calculation above excludes intangible amortisation and
other non-underlying items and has a tax charge based on the effective rate.
Unaudited six months ended 30 Jun 2016 Unaudited six months ended 30 Jun 2015 Audited year ended 31 Dec 2015
pence pence pence
Basic earnings per share 5.1 4.2 6.0
Non-underlying items 0.8 0.1 3.3
Foreign exchange losses on intercompany balances - - 0.1
Tax losses recognised - - (0.2)
Adjusted earnings per share 5.9 4.3 9.2
8. Cash generated from operations
Unaudited Unaudited six months ended 30 Jun 2015 Audited year ended 31 Dec 2015
six months ended
30 Jun 2016
£000 £000 £000
Profit before tax for the period 3,788 3,687 4,885
Adjusted for:
Depreciation 283 300 597
Amortisation 347 68 429
Impairment of fixed assets - - 1,532
Research and development credit - - (101)
Share-based payment (credit)/ expense 256 (132) 110
Finance income (41) (71) (104)
Finance costs 208 255 492
Changes in working capital:
Increase in receivables (2,994) (1,315) (1,162)
(Decrease)/increase in payables (4,257) (4,305) 828
Increase/ (decrease) in provisions 7 (9) (11)
Cash generated from operations (2,403) (1,522) 7,495
9. Dividends
The interim dividend of 1.5 pence per share (2015: 1.4 pence per share) was
approved by the Board on 15 July 2016. It is payable on 26 August 2016 to
shareholders on the register at 5 August 2016. This interim dividend,
amounting to £886,000 (2015: £812,000), has not been included as a liability
in this interim financial information. It will be recognised in shareholders'
equity in the year to 31 December 2016.
The dividend that relates to the period to 31 December 2015 and that amounted
to £1,654,000 (2014: final dividend £1,277,000) was paid in June 2016.
10. Property, plant and equipment
Unaudited Unaudited
six months ended six months ended
30 Jun 2016 30 Jun 2015
Six months ended 30 June 2016
£000 £000
Opening net book amount 1 January 928 4,863
Addition 556 103
Acquired through acquisitions 46 12
Disposals - (12)
Exchange movements 27 (29)
Depreciation (285) (300)
Closing net book amount 30 June (unaudited) 1,272 4,637
The group has not placed any contracts for future capital expenditure which
has not been provided for in the financial statements.
11. Financial liabilities
Unaudited Unaudited
six months ended six months ended
30 Jun 2016 30 Jun 2015
£000 £000
At 1 January 13,250 16,250
Loan repayment (1,500) (1,500)
At 30 June 11,750 14,750
The borrowings are repayable as follows:
Within one year 3,000 3,000
In the second year 3,000 3,000
In the third to fifth yeas inclusive 5,750 8,750
11,750 14,750
Less: Amount due for settlement within 12 months (shown under current liabilities) (3,000) (3,000)
Amount due for settlement after 12 months 8,750 11,750
12. Provisions for other liabilities and charges
Unaudited Unaudited
six months ended six months ended
30 Jun 2016 30 Jun 2015
£000 £000
At 1 January 275 276
Utilised - (2)
Deferred consideration for acquisition of Finalysys Ltd - 182
Exchange movements 7 (7)
At 30 June 282 449
Provisions have been analysed between current and non-current as follows:
Unaudited Unaudited
six months ended six months ended
30 Jun 2016 30 Jun 2015
£000 £000
Current 25 12
Non-current 257 437
At 30 June 282 449
13. Share capital
Unaudited Unaudited
six months ended six months ended
30 Jun 2016 30 Jun 2015
Ordinary share capital at 6 3/7 pence each (1 Jan 2015: 5 pence each) Number of shares Ordinary Shares Number of shares Ordinary Shares
000 £000 000 £000
Opening balance as at 1 January 59,060 3,796 74,611 3,730
Shares issued to satisfy option awards 20 1 - -
Share reorganisation - - (16,581) -
Closing balance as at 30 June (unaudited) 59,080 3,797 58,030 3,730
Employee share option scheme: options were exercised during the period to 30
June 2016 resulted in 19,667 shares being issued (30 June 2015: nil), with
exercise proceeds of £28,000. The related weight average share price at the
time of exercise was £1.40 per share.
13. Share capital (continued)
Return of Value to Shareholders
During the year ended 31 December 2015, the Group announced a Return of Value
to shareholders of 27 pence per ordinary share amounting to £20 million in
cash, by way of a 'B'/'C' share scheme, which gave shareholders a choice
between receiving cash in the form of income or capital. The Return of Value
was approved by shareholders on 18 March 2015. The Return of Value was
accompanied by a 7 for 9 share consolidation to maintain broad comparability
of the share price and return per share of the ordinary shares before and
after the creation of the 'B' and 'C' shares.
Share premium 2016 2015
£000 £000
Opening balance as at 1 January 4,484 12,049
Redemption of 'B' shares - (8,035)
Movement in relation to share options exercised 9 -
Closing balance as at 30 June (unaudited) 4,493 4,014
14. Acquisitions
On 13 May 2016 the Group acquired the entire share capital and voting rights
of Infoscreen (Cyprus) Limited (Infoscreen) for consideration in cash of £1.4
million, in addition to a commitment to settle vendor debt following
acquisition of £0.3 million.
Provisional values of the net liabilities acquired in the transactions and the
intangibles arising, are as follows:
Carrying
values pre Fair value Provisional
acquisition adjustments fair value
£000 £000 £000
Net assets acquired
Intangible fixed assets - 2,166 2,166
Deferred tax liability - (433) (433)
Property, plant and equipment 42 - 42
Trade and other receivables 133 - 133
Cash and cash equivalents 21 - 21
Trade and other payables (153) - (153)
Deferred income (114) - (114)
(71) 1,733 1,662
Goodwill -
Total consideration 1,662
15. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation. There were no other related
party transactions during the six month period ended 30 June 2016 (30 June
2015: £nil), as defined by International Accounting Standard No 24 'Related
Party Disclosures', except for key management compensation.
The related party transactions for the year ended 31 December 2015 as defined
by International Accounting Standard No 24 'Related Party Disclosures' are
disclosed in note 29 of the Microgen plc Annual Report for the year ended 31
December 2015.
16. Statement of directors' responsibilities
The directors confirm that these condensed interim financial statements have
been prepared in accordance with International Accounting Standard 34,
'Interim Financial Reporting', as adopted by the European Union and that the
interim management report includes a fair review of the information required
by DTR 4.2.7 and DTR 4.2.8, namely:
- an indication of important events that have occurred during
the first six months 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 financial year; and
- material related-party transactions in the first six months
and any material changes in the related-party transactions described in the
last annual report.
The directors of Microgen plc are listed in the Microgen plc Annual Report for
31 December 2015. A list of current directors is maintained on the Microgen
plc website: www.microgen.com
Copies of this statement are being posted to shareholders and will also be
available on the investor relations page of our website (www.microgen.com).
Further copies are available from the Company Secretary at Old Change House,
128 Queen Victoria Street, London, England, EC4V 4BJ.
By order of the Board
P Wood
15 July 2016
Group Finance Director
Independent review report to Microgen plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Microgen plc's condensed consolidated interim financial
statements (the "interim financial statements") in the interim results of
Microgen plc for the 6 month period ended 30 June 2016. Based on our review,
nothing has come to our attention that causes us to believe that the interim
financial statements are not prepared, in all material respects, in accordance
with International Accounting Standard 34, 'Interim Financial Reporting', as
adopted by the European Union and the Disclosure Rules and Transparency Rules
of the United Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
· the condensed consolidated interim balance sheet as at 30 June 2016;
· the condensed consolidated interim income statement and condensed
consolidated interim statement of comprehensive income for the period then
ended;
· the condensed consolidated interim statement of cash flow for the period
then ended;
· the condensed consolidated interim statement of changes in equity for the
period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the interim results have been
prepared in accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union and the Disclosure
Rules and Transparency Rules of the United Kingdom's Financial Conduct
Authority.
As disclosed in note 2 to the interim financial statements, the financial
reporting framework that has been applied in the preparation of the full
annual financial statements of the Group is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The interim results, including the interim financial statements, is the
responsibility of, and has been approved by, the directors. The directors are
responsible for preparing the interim results in accordance with the
Disclosure Rules and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
Our responsibility is to express a conclusion on the interim financial
statements in the interim results based on our review. This report, including
the conclusion, has been prepared for and only for the company for the purpose
of complying with the Disclosure Rules and Transparency Rules of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and, consequently,
does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
We have read the other information contained in the interim results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
Uxbridge
15 July 2016
This information is provided by RNS
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