REG - Microgen PLC - Interim Results <Origin Href="QuoteRef">MCGN.L</Origin> - Part 2
24/07/2017 07:05
- Part 2: For the preceding part double click ID:nRSX8169La
£000 £000 £000 £000
Revenue 26,364 16,624 - 42,988
Operating costs (22,522) (9,405) - (31,927)
Operating profit before Group overheads 3,842 7,219 - 11,061
Unallocated Group overheads (1,536) (1,536)
Operating profit before non-underlying items 9,525
Non-underlying items - (914) (399) (1,313)
Operating profit / (loss) 3,842 6,305 (1,935) 8,212
Finance Income 66
Finance Cost (397)
Profit before tax 7,881
Income tax expense (1,638)
Profit for the period 6,243
6. Non-underlying items
Unaudited Unauditedsix monthsended 30 Jun 2016 Auditedyearended 31 Dec 2016
six monthsended 30 Jun 2017
£000 £000 £000
Amortisation of intangibles 616 347 812
Share based payments on share optionsissued in 2013 only 66 221 399
Acquisition and associated restructuring costs 195 36 102
877 604 1,313
7. Income tax expense
Income tax expense is recognised based on management's estimate of the
weighted average income tax rate expected for the full financial year of 24%
(the estimated tax rate for the six months ended 30 June 2016 was 20%).
8. Earnings per share Unaudited six months ended30 Jun 2017 Unaudited six months ended 30 Jun 2016 Auditedyear ended31 Dec 2016
pence pence pence
Earnings per share
Basic 6.9 5.1 10.6
Diluted 6.7 4.9 10.0
Adjusted earnings per share
Basic 8.0 5.9 12.3
Diluted 7.7 5.6 11.6
8. Earnings per share (continued)
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 ended30 Jun 2017 Unaudited six months ended 30 Jun 2016 Auditedyear ended31 Dec 2016
pence pence pence
Basic earnings per share 6.9 5.1 10.6
Non-underlying items 1.1 0.8 1.9
Tax losses recognised - - (0.2)
Adjusted earnings per share 8.0 5.9 12.3
9. Cash generated from operations
Unaudited six months ended 30 Jun 2017 Unaudited six months ended 30 Jun 2016 Auditedyear ended 31 Dec 2016
£000 £000 £000
Profit before tax for the period 5,425 3,788 7,881
Adjusted for:
Depreciation 324 283 601
Amortisation 616 347 812
Share-based payment expense 282 256 610
Finance income (7) (41) (66)
Finance costs 164 208 397
Changes in working capital:
Increase in receivables (1,726) (2,994) (3,412)
(Decrease) / increase in payables (4,666) (4,257) 6,173
Increase / (decrease) in provisions 7 7 (36)
Cash generated from / (used in) operations 419 (2,403) 13,032
10. Dividends
The interim dividend of 2.0 pence per share (2016: 1.5 pence per share) was
approved by the Board on 21 July 2017. It is payable on 25 August 2017 to
shareholders on the register at 4 August 2017. This interim dividend,
amounting to £1,216,000 (2016: £886,000), 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 2017.
The dividend that relates to the period to 31 December 2016 and that amounted
to £2,128,000 (2015: final dividend £1,654,000) was paid in May 2017.
11. Property, plant and equipment
Unauditedsix months ended Unaudited six months ended
30 Jun 2017 30 Jun 2016
£000 £000
Opening net book amount 1 January 1,330 928
Additions 610 556
Acquired through acquisitions 25 46
Disposals (8) -
Exchange movements 16 27
Depreciation (324) (285)
Closing net book amount 30 June (unaudited) 1,649 1,272
The group has not placed any contracts for future capital expenditure which
have not been provided for in the financial statements.
12. Trade and other payables
Unaudited Unaudited
six months ended six months ended
30 Jun 2017 30 Jun 2016
£000 £000
Trade payables 741 506
Other tax and social security payable 839 662
Other payables 137 48
Accruals 3,902 2,503
Deferred income 17,878 13,567
Closing net book amount 30 June (unaudited) 23,497 17,286
13. Financial liabilities
Unaudited Unaudited
six months ended six months ended
30 Jun 2017 30 Jun 2016
£000 £000
At 1 January 10,250 13,250
Loan repayment (1,500) (1,500)
At 30 June 8,750 11,750
The borrowings are repayable as follows:
Within one year 3,000 3,000
In the second year 5,750 3,000
In the third to fifth years inclusive - 5,750
8,750 11,750
Less: Amount due for settlement within 12 months (shown under current liabilities) (3,000) (3,000)
Amount due for settlement after 12 months 5,750 8,750
14. Provisions for other liabilities and charges
Unaudited Unaudited
six months ended six months ended
30 Jun 2017 30 Jun 2016
£000 £000
At 1 January 310 275
Exchange movements 7 7
At 30 June 317 282
Provisions have been analysed between current and non-current as follows:
Unaudited Unaudited
six months ended six months ended
30 Jun 2017 30 Jun 2016
£000 £000
Current 24 25
Non-current 293 257
At 30 June 317 282
15. Share capital
Unaudited Unaudited
six months ended six months ended
30 Jun 2017 30 Jun 2016
Ordinary share capital at 6 3/7 pence each Number of shares Ordinary Shares Numberof shares Ordinary Shares
000 £000 000 £000
Opening balance as at 1 January 59,297 3,811 59,060 3,796
Shares issued to satisfy option awards 1,529 97 20 1
Closing balance as at 30 June (unaudited) 60,826 3,908 59,080 3,797
Employee share option scheme: options exercised during the period to 30 June
2017 resulted in 1,529,339 shares being issued (30 June 2016: 19,667), with
exercise proceeds of £99,000 (30 June 2016: £28,000). The related weighted
average share price at the time of exercise was £2.34 per share (30 June 2016:
£1.40).
Unaudited Unaudited
six months ended six months ended
30 Jun 2017 30 Jun 2016
£000 £000
Opening balance as at 1 January 4,498 4,484
Movement in relation to share options exercised 2 9
Closing balance as at 30 June (unaudited) 4,500 4,493
16. Acquisitions
On 27 February 2017 the Group acquired the entire share capital and voting
rights of Primacy Corporation (Primacy) for consideration in cash of £3.4
million. Primacy is a wealth management software provider for the trust and
corporate services industry, which will strengthen our market position.
Provisional values of the net assets 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 - 4,515 4,515
Deferred tax liability - (1,174) (1,174)
Property, plant and equipment 25 - 25
Trade and other receivables 223 - 223
Cash and cash equivalents 122 - 122
Trade and other payables (68) - (68)
Deferred income (194) - (194)
108 3,341 3,449
Goodwill -
Total consideration 3,449
17. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation. During 2017, the Group entered
into transactions with a subsidiary of FDM Group (Holdings) plc, a company for
which Ivan Martin (Chairman) and Peter Whiting (non-executive director) are
current non-executive directors. FDM Group provided consultancy services to
Microgen Financial Systems during the six month period ended 30 June 2017 at a
cost of £21,730. No equivalent transaction occurred during 2016. There were no
other related party transactions during the six month period ended 30 June
2017 (30 June 2016: £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 2016 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 2016.
18. 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 2016. 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
21 July 2017
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 2017. 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 Guidance and Transparency
Rules sourcebook 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 2017;
· 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
Guidance and Transparency Rules sourcebook 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 Guidance and Transparency Rules sourcebook 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 Guidance and Transparency Rules sourcebook 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) 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, 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
Reading
21 July 2017
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Aptitude Software
See all newsREG - Aptitude Software - Total Voting Rights
AnnouncementREG - Aptitude Software - Grant of awards under 2020 Deferred Bonus Plan
AnnouncementREG - Aptitude Software - Transaction in Own Shares
AnnouncementREG - Aptitude Software - Transaction in Own Shares
AnnouncementREG - Aptitude Software - Transaction in Own Shares
Announcement