REG - Begbies Traynor - Half-year Report <Origin Href="QuoteRef">BEG.L</Origin>

Begbies TraynorAnnouncement

12/12/2017 07:06

RNS Number : 0206Z
Begbies Traynor Group PLC
12 December 2017
12 December 2017
Begbies Traynor Group plc
Half year results
for the six months ended 31 October 2017
Begbies Traynor Group plc (the 'company' or the 'group'), the business recovery, financial advisory and property services consultancy, today announces its half year results for the six months ended 31 October 2017.
Financial overview 
2017
2016*
m
m
Revenue
26.0
24.5
Adjusted profit before tax**
2.9
2.5
Profit before tax
1.0
0.9
Adjusted basic EPS*** (p)
2.0
1.8
Basic EPS (p)
0.3
0.5
Interim dividend (p)
0.7
0.6
Net debt
6.9
12.2
* Restated as detailed in note 1
** Profit before tax of 1.0m (2016: 0.9m) plus amortisation of intangible assets arising on acquisitions of 0.9m (2016: 1.3m) plus transaction costs of 1.0m (2016: 0.3m).
*** See reconciliation in note 5
Highlights:
 A good first half performance, results in line with expectations
 Business recovery and advisory services improved its performance:
o increase in insolvency market activity levels over the last twelve months
o revenue growth and improved margins 
 Property services performed in line with expectations as we continued to invest in its service offering and geographical coverage
 Strong cash generation drove a significant reduction in net debt and supports the board's decision to declare an increased interim dividend, the first increase since 2011 
Outlook:
 Well placed to deliver upon current market expectations for the full year
Commenting on the results, Ric Traynor, Executive Chairman of Begbies Traynor Group, said:
"I am pleased to report a good first half performance, in line with our expectations, reflecting a continuation of the improved performance in business recovery and advisory services experienced in the second half of last year,with property services performing as anticipated.
"Our good performance in the first half of the year leaves us well placed to deliver upon current market expectations for the full year; the delivery of which will enable the group to continue its recent track record of profit and earnings growth.
"The group is in its strongest position for many years, which enables us to execute our strategy and continue to invest in the growth of the business."
A meeting for analysts will be held today at 8:45am for 9.00am at the offices of MHP Communications, 6 Agar Street, London WC2N 4HN.Please contact Peter Lambie on 020 3128 8570 or via peter.lambie@mhpc.com if you would like to attend.
Enquiries please contact:
 
Begbies Traynor Group plc  0161 837 1700
Ric Traynor - Executive Chairman
Nick Taylor - Group Finance Director
Canaccord Genuity Limited    020 7523 4588
(Nominated Adviser and Joint Broker)
Sunil Duggal
Andrew Buchanan
Margarita Mitropoulou
Shore Capital   020 7408 4090
(Joint Broker)
Mark Percy / Anita Ghanekar
 
MHP Communications  020 3128 8100
Reg Hoare / Katie Hunt 
Information on Begbies Traynor Group can be accessed via the Group's website at
www.begbies-traynorgroup.com
CHAIRMAN'S STATEMENT
INTRODUCTION
I am pleased to report a good first half performance, in line with our expectations, reflecting an improved performance in business recovery and advisory services, with property services performing as anticipated.
In the business recovery and advisory division, we were encouraged to see a continuation of the increase in activity levels experienced in the second half of the prior year, with a strong year on year improvement in results. We remain the leading UK corporate appointment taker by volume, leaving us well positioned to take advantage of any sustained increase in activity levels, which remain close to historically low levels. 
Property services performed in line with our expectations. We have continued to invest in the division to develop both our service offering and our geographical coverage, which we anticipate will benefit future years.
This strong financial performance has enabled the group to remain strongly cash generative, leading to reduction in net debt to 6.9m as at 31 October 2017 (2016: 12.2m) and allowing continued investment in growth opportunities. 
The group's financial performance and cash generation in the first half, combined with our improved confidence in sustaining our recent earnings growth, has led the board to declare a 17% increase in the interim dividend to 0.7p. This is the first dividend increase since 2011.
RESULTS
Group revenue from continuing operations in the half year ended 31 October 2017 was 26.0m (2016: 24.5m). Adjusted profit before tax* increased to 2.9m (2016: 2.5m). Profit before tax was 1.0m (2016: 0.9m). Profit for the period from continuing operations was 0.4m (2016: 0.5m).
Earnings per share from continuing operations**, adjusted for the net of tax impact of amortisation of intangible assets arising on acquisitions and transaction costs, were 2.0p (2016: 1.8p). Basic and fully diluted earnings per share from continuing operations were 0.3p (2016: 0.5p). 
 
Net debt at 31 October 2017 was 6.9m (30 April 2017: 10.3m, 31 October 2016: 12.2m). Gearing stood at 12% (Apr 17: 18%, Oct 16: 21%) and the group retains significant headroom in its committed banking facilities. Interest cover*** was 12.2 times (2016: 6.3 times). 
* Profit before tax from continuing operations of 1.0m (2016: 0.9m) plus amortisation of intangible assets arising on acquisitions of 0.9m (2016: 1.3m) plus transaction costs of 1.0m (2016: 0.3m) 
** See reconciliation in note 5
*** Before amortisation and transaction costs
DIVIDEND
The board is pleased to declare an increased interim dividend of 0.7p (2016: 0.6p), an increase of 17%.
The full year dividend will be set in line with our commitment to a long-term progressive dividend policy, with any dividend growth taking account of both the market outlook and earnings growth. 
The interim dividend will be paid on 10 May 2018 to shareholders on the register as at 13 April 2018, with an ex-dividend date of 12 April 2018.
OUTLOOK
Our good performance in the first half of the year leaves us well placed to deliver upon current market expectations for the full year; the delivery of which will enable the group to continue its recent track record of profit and earnings growth.
The group is in its strongest position for many years, which enables us to execute our strategy and continue to invest in the growth of the business. We will provide an update on third quarter trading in early March 2018.
Ric Traynor
Executive chairman
12 December 2017
BUSINESS REVIEW
Begbies Traynor Group plc is a leading business recovery, financial advisory and property services consultancy, providing services nationally from a comprehensive network of UK locations through two complementary operating divisions.
Business recovery and financial advisory services
Begbies Traynor is the UK's leading independent business recovery practice, handling the largest number of corporate appointments, principally serving the mid-market and smaller companies. 
BTG Advisory provides transactional support, valuations and advisory services.
We provide these services to businesses, professional advisors, other stakeholders, investors and financial institutions, working with all the major UK clearing banks.
Property services
Eddisons is a national firm of chartered surveyors, delivering advisory and transactional services to owners and occupiers of commercial property, investors and financial institutions. The division includes Pugh & Co, the largest regional firm of commercial property auctioneers by number of lots.
OPERATING REVIEW
Business recovery and financial advisory
Insolvency market
The number of corporate insolvencies (source: The Insolvency Service) increased by 8% in the twelve months ended 30 September 2017* to 15,572 (2016: 14,482). Corporate insolvencies in calendar years 2015 and 2016 were circa 14,700 per annum, representing the lowest level of corporate appointments since 2004.
*Source: The Insolvency Service quarterly insolvency statistics, excluding the one-off effect of 1,131 connected personal service companies which entered liquidation on the same date following changes to claimable expenses rules.
Financial performance
The increase in market activity levels (as noted above), combined with a success fee of 0.8m on a contingent insolvency case, increased revenue by 10% to 19.2m (2016: 17.4m). Segmental profits* increased to 4.1m (2016: 3.2m) with an improvement in operating margins to 21.4% (2016: 18.1%).
We have continued to develop our advisory services in the period and have recently launched BTG Advisory, which brings together our restructuring, financial advisory, corporate finance, forensic and investigation teams to operate as one national team.
The number of people employed in the division has increased to 342 as at 31 October 2017 from 337 at the start of the financial year. We retain the capacity to deliver growth in revenue and profits from our existing team in the event of a further increase in activity levels. 
We have maintained our market share and remain the leading corporate appointment taker by volume. In the second half, we expect the division to perform broadly in line with the first half, excluding the benefit of the contingent fees.
* See note 2
Property services
Revenue decreased to 6.8m (2016: 7.1m) as anticipated, due to a one-off advisory fee of 0.4m which benefitted the comparative period. Operating costs increased to 5.5m (2016: 5.1m) due to the full year impact of prior year acquisitions, investment in new people and increased share-based payment charges. 
Segmental profits* were 1.3m (2016: 2.0m) with operating margins of 19.7% (2016: 28.3%). 
As noted above, we have continued to invest in the division and in the period have recruited a new team in Liverpool providing valuation and agency services operating from the group's existing office, which we anticipate will benefit future years. The number of people employed in the division has increased to 177 as at 31 October 2017 from 170 at the start of the financial year and 164 in October 2016.
We continue to seek opportunities to invest in the division through senior recruitment, in addition to seeking further acquisitions. These growth initiatives will develop both our service offering and geographical coverage. In the second half, we anticipate trading to continue at least at current levels.
* See note 2
FINANCE REVIEW
Financial summary
2017
Restated
2016
'000
'000
Revenue 
26,016
24,454
Operating profit (before transaction costs and amortisation)
3,134
2,969
Interest costs 
(256)
(472)
Adjusted profit before tax
2,878
2,497
Transaction costs 
(1,029)
(329)
Amortisation of intangible assets arising on acquisitions
(895)
(1,291)
Profit before tax
954
877
Tax
(570)
(346)
Profit for the period
384
531
Revenue
Revenue in the period was 26.0m (2016: 24.5m). 
Business recovery and financial advisory revenue increased by 1.9m, partially offset by reduced property services revenue of 0.3m.
Operating profit (before transaction costs and amortisation)
Operating profit increased to 3.1m (2016: 3.0m) with margins of 12.0% (2016: 12.1%). 
Interest costs 
Interest costs reduced to 0.3m (2016: 0.5m), as a result of the group's reduced borrowing costs following the refinancing in November 2016.
 
Transaction costs 
Transaction costs in the period were 1.0m (2016: 0.3m) comprising: 
 acquisition costs of nil (2016: 0.1m); 
 deemed remuneration charges of 0.7m (2016: 0.6m);
 charge relating to the put and call option over Begbies Traynor (London) LLP of 0.3m (2016: nil), offset by:
 gain on acquisition of nil (2016: 0.4m). 
Amortisationof intangible assets arising on acquisitions
Amortisation costs decreased to 0.9m (2016: 1.3m).
Tax
The tax charge for the period was 0.6m (2016: 0.3m) based on the expected tax rate for the full year. 
Earnings per share ('EPS')
EPS*, adjusted for the net of tax impact of amortisation andtransaction costs were 2.0p (2016: 1.8p). 
Basic and diluted earnings per share were 0.3p (2016: 0.5p).
* See reconciliation in note 5
Cash flows
Cash generated by operations (before interest and tax payments) in the period was 4.9m (2016: 2.2m). Tax payments in the period were 0.4m (2016: 0.7m). Interest payments were 0.2m (2016: 0.4m).
Cash outflows from investing activities were 0.3m (2016: 2.2m). Capital expenditure was 0.2m (2016: 0.1m). Deferred payments relating to prior year acquisitions were 0.1m (2016: 0.5m). Acquisition payments were nil (2016: 1.6m, net of cash acquired).
Financing cash outflows were 2.6m (2016: 1.6m). During the period we reduced the level of drawn debt under our banking facilities by 2.0m (2016: 1.0m). Dividend payments were 0.6m (2016: 0.6m).
Financing
Net borrowings reduced to 6.9m at 31 October 2017 (Apr 2017: 10.3m, Oct 16: 12.2m), with gearing of 12% (Apr 17: 18%, Oct 16: 21%) and significant headroom within the committed banking facilities. During the period, all bank covenants were comfortably met and the group remains in a strong financial position. Interest cover* was 12.2 times (2016: 6.3 times).
The group's banking facilities are unsecured, mature on 31 August 2021 and comprise a 25m committed revolving credit facility and a 5m uncommitted acquisition facility. 
* Before amortisation and transaction costs 
Net assets
At 31 October 2017 net assets were 56.5m (2016: 58.6m) and are analysed as follows:
31 Oct 2017
30 Apr 2017
Restated
31 Oct 2016
m
m
m
Non-current assets
58.9
60.0
61.3
Current assets
28.8
29.8
33.6
Net borrowings
(6.9)
(10.3)
(12.2)
Current tax
(1.2)
(0.8)
(1.0)
Other liabilities
(23.1)
(20.6)
(23.1)
Net assets
56.5
58.1
58.6
 
Ric Traynor Nick Taylor
Executive chairman Group finance director
12 December 2017 12 December 2017
Statement of comprehensive income
Six months ended 
Restated
Six months ended 
Year ended
31 October 2017 
31 October 2016 
30 April 2017
(unaudited)
(unaudited)
(audited)
Note
'000
'000
'000
Revenue
26,016
24,454
49,685
Direct costs
(14,659)
(13,739)
(28,130)
Gross profit
11,357
10,715
21,555
Other operating income
132
186
397
Administrative expenses
(10,279)
(9,552)
(20,309)
Operating profit before amortisation and transaction costs
3,134
2,969
5,627
Transaction costs
4
(1,029)
(329)
(1,545)
Amortisation of intangible assets arising on acquisitions
(895)
(1,291)
(2,439)
Operating profit
1,210
1,349
1,643
Finance costs
3
(256)
(472)
(1,001)
Profit before tax
954
877
642
Tax
(570)
(346)
(429)
Profit for the period from continuing operations
384
531
213
Discontinued operations
Loss for the period from discontinued operations
-
-
(476)
Profit (loss) for the period 
384
531
(263)
Other comprehensive income
Exchange differences on translation of foreign operations
-
-
2
Total comprehensive income for the period
384
531
(261)
Earnings per share
From continuing operations
Basic and diluted
0.3p
0.5p
0.2p
From continuing and discontinued operations
Basic and diluted
5
0.3p
0.5p
(0.2)p
All of the profit and comprehensive income for the period is attributable to equity holders of the parent
Consolidated statement of changes in equity
For the six months ended 31 October 2017 (unaudited)
Share
Share
Merger
Translation
Retained
Total
capital 
premium 
reserve 
reserve
earnings 
equity 
'000
'000
'000
'000
'000
'000
At 1 May 2017
5,640
23,258
17,584
-
11,618
58,100
Profit for the period
-
-
-
-
384
384
Other comprehensive income:
Exchange differences on translation of foreign operations
-
-
-
-
-
-
Total comprehensive income for the period
-
-
-
-
384
384
Dividends
-
-
-
-
(2,356)
(2,356)
Credit to equity for equity-settled share-based payments
-
-
-
-
161
161
Shares issued
28
349
-
-
(212)
165
At 31 October 2017
5,668
23,607
17,584
-
9,595
56,454
For the six months ended 31 October 2016 (unaudited)
Share
Share
Merger
Translation
Retained
Total
capital 
premium 
reserve 
reserve
earnings 
equity 
'000
'000
'000
'000
'000
'000
At 1 May 2016 as previously reported
5,611
23,042
17,584
(2)
13,446
59,681
Restatement
-
-
-
-
549
549
At 1 May 2016 restated
5,611
23,042
17,584
(2)
13,995
60,230
Profit for the period as restated
-
-
-
-
531
531
Other comprehensive income:
Exchange differences on translation of foreign operations
-
-
-
-
-
-
Total comprehensive income for the period
-
-
-
-
531
531
Dividends
-
-
-
-
(2,335)
(2,335)
Credit to equity for equity-settled share-based payments
-
-
-
-
125
125
Shares issued
1
11
-
-
-
12
At 31 October 2016
5,612
23,053
17,584
(2)
12,316
58,563
For the year ended 30 April 2017 (audited)
Share
Share
Merger
Translation
Retained
Total
capital 
premium 
reserve 
reserve
earnings 
equity 
'000
'000
'000
'000
'000
'000
At 1 May 2016
5,611
23,042
17,584
(2)
13,446
59,681
Restatement
-
-
-
-
549
549
At 1 May 2016 restated
5,611
23,042
17,584
(2)
13,995
60,230
Loss for the year
-
-
-
-
(263)
(263)
Other comprehensive income:
Exchange differences on translation of foreign operations
-
-
-
2
-
2
Total comprehensive income for the year
-
-
-
2
(263)
(261)
Dividends
-
-
-
-
(2,335)
(2,335)
Credit to equity for equity-settled share-based payments
-
-
-
-
431
431
Shares issued
29
216
-
-
(210)
35
At 30 April 2017
5,640
23,258
17,584
-
11,618
58,100
The merger reserve arose on the formation of the group in 2004.
Consolidated balance sheet
31 October 2017 (unaudited)
Restated
31 October 2016 
(unaudited)
30 April 2017 (audited)
'000
'000
'000
Non-current assets
Intangible assets
57,548
59,591
58,471
Property, plant and equipment
1,397
1,677
1,498
58,945
61,268
59,969
Current assets
Trade and other receivables
28,818
33,642
29,761
Cash and cash equivalents
8,069
4,823
6,715
36,887
38,465
36,476
Total assets
95,832
99,733
96,445
Current liabilities
Trade and other payables
(16,427)
(15,797)
(13,585)
Current tax liabilities
(1,231)
(997)
(843)
Borrowings
-
(7,000)
-
Provisions
(458)
(613)
(755)
(18,116)
(24,407)
(15,183)
Net current assets
18,771
14,058
21,293
Non-current liabilities
Trade and other payables
(671)
-
(335)
Borrowings
(15,000)
(10,000)
(17,000)
Provisions
(352)
(711)
(418)
Deferred tax
(5,239)
(6,052)
(5,409)
(21,262)
(16,763)
(23,162)
Total liabilities
(39,378)
(41,170)
(38,345)
Net assets
56,454
58,563
58,100
Equity
Share capital
5,668
5,612
5,640
Share premium
23,607
23,053
23,258
Merger reserve
17,584
17,584
17,584
Translation reserve
-
(2)
-
Retained earnings
9,595
12,316
11,618
Equity attributable to owners of the company
56,454
58,563
58,100
Consolidated cash flow statement
Six months ended 31 
October 2017 (unaudited)
Six months ended 31 October 2016 (unaudited)
Year ended 
30 April 2017 (audited)
Note
'000
'000
'000
Cash flows from operating activities
Cash generated by operations
7
4,912
2,190
7,974
Income taxes paid
(352)
(701)
(1,462)
Interest paid
(248)
(429)
(919)
Net cash from operating activities
4,312
1,060
5,593
Investing activities
Purchase of property, plant and equipment
(151)
(72)
(289)
Purchase of intangible fixed assets
(61)
(8)
(8)
Deferred consideration payments in the period
(122)
(539)
(1,144)
Acquisition of businesses
-
(1,627)
(1,773)
Net cash from investing activities
(334)
(2,246)
(3,214)
Financing activities
Dividends paid
(640)
(637)
(2,335)
Proceeds on issue of shares
16
12
37
Repayment of loans
(2,000)
(1,000)
(1,000)
Net cash from financing activities
(2,624)
(1,625)
(3,298)
Net increase (decrease) in cash and cash equivalents
1,354
(2,811)
(919)
Cash and cash equivalents at beginning of period
6,715
7,634
7,634
Cash and cash equivalents at end of period
8,069
4,823
6,715
1. Basis of preparation and accounting policies
(a) Basis of preparation
The half year condensed consolidated financial statements do not include all of the information and disclosures required for full annual financial statements and should be read in conjunction with the group's annual financial statements as at 30 April 2017, which have been prepared in accordance with IFRSs as adopted by the European Union.
This condensed consolidated half year financial information does not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006. Statutory accounts for the year ended 30 April 2017 were approved by the board of directors on 10 July 2017 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.
The directors have reviewed the financial resources available to the group and have concluded that the group is a going concern. This conclusion is based upon, amongst other matters, a review of the group's financial projections for a period of twelve months following the date of this announcement, together with a review of the cash and committed borrowing facilities available to the group. Accordingly, the going concern basis has been used in preparing these half year condensed consolidated financial statements.
The condensed consolidated financial statements for the six months ended 31 October 2017 have not been audited nor subject to an interim review by the auditors. IAS 34 'Interim financial reporting' is not applicable to these half year condensed consolidated financial statements and has therefore not been applied.
(b) Significant accounting policies
The accounting policies adopted in preparation of the half year condensed consolidated financial statements are consistent with those followed in the preparation of the group's annual financial statements for the year ended 30 April 2017.
(c) Prior period restatement
As disclosed in the group's statutory accounts for the year ended 30 April 2017, the group updated its accounting in respect of the acquisition of subsidiaries and businesses where the consideration payable requires post-acquisition service obligations to be performed by the selling shareholders.
The net impact of these adjustments was a 549,000 credit to opening reserves at 1 May 2016 and a 307,000 credit to the consolidated statement of comprehensive income in the six months to 31 October 2016. The group's KPI's of adjusted profit before tax and adjusted EPS were not impacted by this restatement. There were no restatements to reported cashflows.
The impact on each line item on the primary financial statements is shown in the table below:
As reported
31 October
Adjustments
31 October
Restated
31 October
2016
2016
2016
'000
'000
'000
Consolidated income statement
Transaction costs
(692)
363
(329)
Finance costs
(499)
27
(472)
Tax
(263)
(83)
(346)
Profit for the year from continuing operations
224
307
531
Basic earnings per share
From continuing operations
0.2p
0.3p
0.5p
Consolidated balance sheet
Total assets
100,946
(1,213)
99,733
Total liabilities
(43,239)
2,069
(41,170)
Total shareholders funds
57,707
856
58,563
2. Segmental analysis by class of business
Six months ended 31 October 2017 (unaudited)
Six months ended 31 October 2016 (unaudited)
Year ended 30 April 2017 (audited)
'000
'000
'000
Revenue
Business recovery and advisory
19,246
17,360
36,231
Property
6,770
7,094
13,454
26,016
24,454
49,685
Operating profit before amortisation and transaction costs
Business recovery and advisory
4,113
3,150
7,353
Property
1,337
2,006
2,900
Shared and central costs
(2,316)
(2,187)
(4,626)
3,134
2,969
5,627
3. Finance costs
Six months ended 31 October 2017 (unaudited)
Restated
Six months ended 31 October 2016 (unaudited)
Year ended 30 April 2017 (audited)
'000
'000
'000
Interest on bank loans and overdrafts
256
472
760
Unwinding of discount on deferred consideration liabilities
-
-
16
Interest costs
256
472
776
Refinancing costs
-
-
225
256
472
1,001
4. Transaction costs
Six months ended 31 October 2017 (unaudited)
Restated
Six months ended 31 October 2016 (unaudited)
Year ended 30 April 2017 (audited)
'000
'000
'000
Deemed remuneration
662
607
1,420
Acquisition costs
32
73
141
Gain on acquisition
-
(351)
(351)
Charge relating to the put and call option over Begbies Traynor (London) LLP
335
-
335
1,029
329
1,545
5. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
Six months ended 31 October 2017 (unaudited)
Restated
Six months ended 31 October 2016 (unaudited)
Year ended 30 April 2017 (audited)
'000
'000
'000
Earnings
Profit for the period from continuing operations attributable to equity holders
384
531
213
Loss from discontinued operations attributable to equity holders
-
-
(476)
Profit (loss) for the period attributable to equity holders
384
531
(263)
31 October 2017 (unaudited)
31 October 2016 (unaudited)
30 April 2017 (audited)
Number
number
number
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share
108,352,224
106,202,986
107,246,497
Effect of dilutive potential ordinary shares:
Share options
3,169,599
2,125,437
1,688,849
Contingent shares
1,354,582
1,496,426
1,642,313
Weighted average number of ordinary shares for the purposes of diluted earnings per share
112,876,405
109,824,849
110,577,659
Six months ended 31 October 2017 (unaudited)
Six months ended 31 October 2016 (unaudited)
Year ended 30 April 2017 (audited)
Basic earnings (loss) per share from
Pence
pence
pence
Continuing operations
0.3
0.5
0.2
Discontinued operations
-
-
(0.4)
0.3
0.5
(0.2)
The following additional earnings per share figures are presented as the directors believe they provide a better understanding of the trading position of the group:
Six months ended 31 
October 2017 (unaudited)
Restated
Six months ended 31 October 2016 (unaudited)
Year ended 30 April 2017 (audited)
'000
'000
'000
Earnings
Profit for the period attributable to equity holders
384
531
213
Amortisation of intangible assets arising on acquisitions
895
1,291
2,439
Transaction costs
1,029
329
1,545
Refinancing costs
-
-
225
Tax effect of above items
(170)
(370)
(875)
Adjusted earnings
2,138
1,781
3,547
Six months ended 31
October 2017 (unaudited)
Six months ended 31 October 2016 (unaudited)
Year ended 30 April 2017 (audited)
pence
pence
pence
Adjusted basic earnings per share
2.0
1.8
3.3
Adjusted diluted earnings per share
1.9
1.7
3.2
6. Dividends
The interim dividend of 0.7p (2016: 0.6p) per share (not recognised as a liability at 31 October 2017) will be payable on 10 May 2018 to ordinary shareholders on the register at the close of business on 13 April 2018. The final dividend of 1.6p per share as proposed in the 30 April 2017 financial statements and approved at the group's AGM was paid on 8 November 2017 and was recognised as a liability at 31 October 2017.
7. Reconciliation to the cash flow statement
Six months ended 31 October 2017 (unaudited)
Restated
Six months ended 31 October 2016 (unaudited)
Year ended 30 April 2017 (audited)
'000
'000
'000
Profit (loss) for the period
384
531
(263)
Adjustments for:
Tax
570
346
311
Finance costs
256
472
1,001
Amortisation of intangible assets
984
1,378
2,613
Depreciation of property, plant and equipment
252
381
769
Deemed remuneration
662
607
1,420
Charge relating to the put and call option over Begbies Traynor (London) LLP
335
-
335
Gain on acquisition
-
(351)
(351)
Loss on disposal of property, plant and equipment
-
5
13
Loss on disposal of discontinued operations
-
-
594
Share-based payment expense
161
125
431
Decrease in provisions
(364)
(397)
(549)
Operating cash flows before movements in working capital
3,240
3,097
6,324
Decrease in receivables
918
452
3,179
Increase (decrease) in payables
754
(1,359)
(1,529)
Cash generated by operations
4,912
2,190
7,974

This information is provided by RNS
The company news service from the London Stock Exchange
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