REG - CEPS PLC - Half-year Report

CepsAnnouncement

27/09/2018 08:30

RNS Number : 1335C
CEPS PLC
27 September 2018
 


27 September 2018
 
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR).
 
CEPS PLC
(the "Group" or the "Company")
 
HALF-YEARLY REPORT
 
The Board is pleased to announce its unaudited half-yearly report for the six months ended 30 June 2018.
 
CHAIRMAN'S STATEMENT
 
Unfortunately, there is no getting away from it at the moment as the interminable "Brexit" discussions lumber forward to hopefully some sort of conclusion by the end of March next year.
 
Until the situation is clarified and we return to "normal" politics and business analysis, every comment from Brussels and counter comment from the Government and the numerous interested parties will dominate the investment and business landscape.
 
In the meantime, the CEPS Group of companies are getting on with getting on trying to manage in these extraordinary times.
 
Review of the period   
 
On the face of it the most significant corporate event in the period was Sunline Direct Mail going into administration, but as we said at the time of this unfortunate event the impact on CEPS's balance sheet was effectively neutral and, of course, the removal of a loss-making company going forward is positive for the rest of the Group.
 
In addition, just before the period end on the 27 June, 3.8m new shares were placed at 35p with my family and two other existing shareholders.  Of the net proceeds of £1.325m, £1m was used to repay the short-term loan that the company had drawn down over the previous year. 
 
As a result of this placing there are now 17m shares in issue.
 
Financial review    
 
The interim accounts are even more complicated than normal because of the removal of Sunline from the consolidated accounts.  The gross profit from continuing operations of £3.437m (2017: £2.236m) on sales of £9.056m (2017: £8.497m) is a much healthier 38% (2017: 26%) than the historical comparatives which have been dragged back by the underperformance at Sunline.  The profit before tax from continuing operations of £346,000 compares to £642,000 for the same period last year, when a bank interest refund of £123,000 boosted results.
 
The taxation charge has been inflated by the writing-off of a deferred tax asset.  This is a non-cash item and it remains as an unrecognised asset when it can be utilised against profits. 
 
Gearing has been reduced to 14% from 33% for the comparable period last year.   
 
Operational review
 
Aford Awards
The company has continued its steady progress and with all the vendor loans now repaid the company has commenced repaying the outstanding CEPS acquisition loan notes.    
 
The company has continued to review a number of acquisition opportunities and remains keen to add to its business activities, at the right time and at the right price.
 
CEM Press
The company has continued to make progress on sales but is currently struggling to produce all the orders it has won during the course of the year on time.  The negative impact of this will be felt in the second half.   
 
Again, it is our belief that the business needs to be scaled-up and opportunities are being reviewed to achieve this.
 
Davies Odell
The company is beginning to make steady progress with sales increasing for the first time in a number of years on the back of the new product development reported a year ago. 
 
The company has been able to reduce the cost of production and has also reduced overheads.
 
Friedman's
The company has relocated to new premises for the second time in our ownership.  The company has doubled its premises and has secured the necessary power supply to continue the development of the company.
 
The costs of the move have been expensed through the profit and loss account.  This explains the reduction in profit in these accounts even though sales have increased.
 
The move to larger premises and the installation of new machines has increased capacity and also means that the company is able to develop new product areas which will provide the growth in the next few years.
 
Hickton
Integration of the two companies continues with the harmonisation of systems and the employment of a senior recruit for BRCS based at Hickton's premises in Elsecar.  This will further facilitate the alignment of cultures over time.
 
Against this back-drop both companies continue to perform well.  There has been a complete change to the finance function and an IT systems overhaul, the benefits of which will filter through in the second half.
 
Dividend
 
With the administration of Sunline Direct Mail, the Board has placed the payment of a dividend on hold for the time being.
 
Prospects
 
Despite the Group suffering the loss of Sunline, the Board is confident that the remaining Group companies, as a whole, will make progress over the next year.
 
David Horner
Chairman
27 September 2018
 
 
 
 
 
 
CEPS PLC
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2018




 


Note


Continuing Operations


Discontinued Operations


 


 


Audited




 


 


Unaudited


Unaudited


Unaudited


Unaudited


12 months




 


 


6 months

to 30 June


6 months

to 30 June


6 months

to 30 June


6 months

to 30 June


to 31 December




 


 


2018


2018


2018


2017


2017




 


 


£'000


£'000


£'000


£'000


£'000




 


 


 


 


 


 


 




Revenue


3


9,056


3,118


12,174


12,077


23,601




Cost of sales


 


(5,619)


(3,172)


(8,791)


(9,446)


(18,187)




Gross profit/(loss)


 


3,437


(54)


3,383


2,631


5,414




 


 


 


 


 


 


 




Net operating expenses


 


(2,952)


(296)


(3,248)


(1,763)


(4,313)




Operating profit


 


485


(350)


135


868


1,101




Exceptional item


 


-


20


20


-


(847)




Adjusted operating profit/(loss)


 


485


(330)


155


868


254




 


 


 


 


 


 


 




Analysis of adjusted operating profit/(loss)


 


 


 


 


 


 




Trading


 


650


(350)


300


1,036


1,423




Exceptional item


2


-


20


20


-


(847)




Group costs


3


(165)


-


(165)


(168)


(322)




 


 


485


(330)


155


868


254




Net finance costs


3


(139)


21


(118)


(35)


(209)




Profit on disposal of investment


 


-


-


-


-


10




Profit/(loss) before tax


 


346


(309)


37


833


55




Taxation


3


(180)


-


(180)


(158)


(276)




Profit/(loss) for the period


 


166


(309)


(143)


675


(221)




 


 


 


 


 


 


 




Other comprehensive loss


 


 


 


 


 


 




Items that will not be reclassified to profit or loss


 


-


-


-


-


 
 
 
(66)




Actuarial loss on defined benefit pension plans


 




Items that may be subsequently reclassified to profit or loss


 


-


-


-


-


-




Other comprehensive loss for the period, net of tax


 


-


-


-


-


(66)




Total comprehensive income/(loss) for the period


 


166


(309)


(143)


675


(287)




 


 


 


 


 


 


 




(Loss)/profit attributable to:


 


 


 


 


 


 




Owners of the parent


 


(419)


(309)


(728)


418


(532)




Non-controlling interest


 


585


-


585


257


311




 


 


166


(309)


(143)


675


(221)




Total comprehensive (loss)/income attributable to:


 


 


 


 


 


 




Owners of the parent


 


(419)


(309)


(728)


418


(598)




Non-controlling interest


 


585


-


585


257


311




 


 


166


(309)


(143)


675


(287)




Earnings per share attributable to owners of the parent during the period


 


 


 


 


 


 




basic and diluted


4


(3.17)p


(2.34)p


(5.51)p


3.30p


(4.11)p




 
 
CEPS PLC
Consolidated Statement of Financial Position
As at 30 June 2018




 


Note


Unaudited


Unaudited


Audited




 


 


as at


as at


as at




 


 


30 June


30 June


31 December




 


 


2018


2017


2017




 


 


£'000


£'000


£'000




Assets


 


 


 


 




Non-current assets


 


 


 


 




Property, plant and equipment


 


1,121


2,336


2,320




Intangible assets


 


5,600


6,153


5,600




Deferred tax asset


 


5


220


226




 


 


6,726


8,709


8,146




 


 


 


 


 




Current assets


 


 


 


 




Inventories


 


2,287


2,323


1,770




Trade and other receivables


 


3,561


4,030


3,691




Cash and cash equivalents
(excluding bank overdrafts)


 


1,528


1,369


1,371




 


 


7,376


7,722


6,832




 


 


 


 


 




Total assets


3


14,102


16,431


14,978




 


 


 


 


 




Equity


 


 


 


 




Capital and reserves attributable to owners of the parent


 


 


 


 




Called up share capital


4


1,700


1,320


1,320




Share premium


 


5,789


4,843


4,843




Retained earnings


 


(3,284)


(1,506)


(2,556)




 


 


4,205


4,657


3,607




Non-controlling interest in equity


 


1,932


1,371


1,347




Total equity


 


6,137


6,028


4,954




 


 


 


 


 




Liabilities


 


 


 


 




Non-current liabilities


 


 


 


 




Borrowings


 


1,284


2,504


2,223




Trade and other payables


 


-


-


313




Deferred tax liability


 


71


83


71




Provisions for liabilities and charges


 


-


50


50




 


 


1,355


2,637


2,657




 


 


 


 


 




Current liabilities


 


 


 


 




Borrowings


 


2,320


3,336


3,503




Trade and other payables


 


4,253


4,061


3,556




Current tax liabilities


 


37


307


258




Provisions for liabilities and charges


 


-


62


50




 


 


6,610


7,766


7,367




 


 


 


 


 




Total liabilities


 


7,965


10,403


10,024




 


 


 


 


 




Total equity and liabilities


 


14,102


16,431


14,978




 
CEPS PLC
Consolidated Statement of Cash Flows
Six months ended 30 June 2018




 


Unaudited


Unaudited


Audited




 


6 months to


6 months to


12 months to




 


30 June


30 June


31 December




 


2018


2017


2017




 


£'000


£'000


£'000




Cash flows from operating activities


 


 


 




Cash generated from operations


1,439


598


1,765




Income tax paid


-


-


(229)




Interest received


-


26


128




Interest paid


(118)


(158)


(337)




Net cash generated from operations


1,321


466


1,327




 


 


 


 




Cash flows used in investing activities


 


 


 




Acquisition of subsidiary net of cash acquired


-


(145)


(444)




Purchase of property, plant and equipment


(548)


(170)


(266)




Proceeds from sale of assets


-


-


32




Purchase of intangibles


-


(3)


(11)




Increase in interest in subsidiary


-


(7)


(7)




Net cash used in investing activities


(548)


(325)


(696)




 


 


 


 




Cash flows from financing activities


 


 


 




Repayment of borrowings


(1,157)


(522)


(476)




Dividend paid to non-controlling interest


-


(113)


(225)




Proceeds from share issue (net of costs)


1,326


1,263


1,263




Repayment of capital element of finance leases


(265)


(103)


(386)




Net cash (used in)/generated from financing activities


(96)


525


176




Net increase in cash and cash equivalents


677


666


807




Cash and cash equivalents at the beginning of the period


851


44


44




Cash and cash equivalents at the end of the period


1,528


710


851




Cash generated from/(used in) operations


 


 


 




Profit before income tax


37


833


55




Adjustments for:


 


 


 




Depreciation and amortisation


308


268


497




Intangible assets written off


-


-


847




Exceptional item


(20)


-


-




Loss on disposal of property, plant and equipment


-


-


(17)




Net finance costs


118


35


209




Operating profit before changes in working capital and provisions


443


1,136


1,591




(Increase)/decrease in inventories


(517)


(303)


250




Decrease/(increase) in trade and other receivables


349


(329)


11




Increase/(decrease) in trade and other payables


1,264


94


(75)




Decrease in provisions


(100)


-


(12)




Cash generated from operations


1,439


598


1,765




Cash and cash equivalents


 


 


 




Cash at bank and in hand


1,528


1,369


1,371




Bank overdrafts repayable on demand


-


(659)


(520)




 


1,528


710


851




 
 
CEPS PLC
Consolidated Statement of Changes in Equity
Six months ended 30 June 2018




 


Share capital


Share premium


Retained earnings


Attributable to owners of the parent


Non-controlling interest


Total equity




 


£'000


£'000


£'000


£'000


£'000


£'000




At 1 January 2017 (audited)


957


3,943


(1,924)


2,976


1,227


4,203




Profit for the period


-


-


418


418


257


675




Total comprehensive income for the period


-


-


418


418


257


675




Proceeds from shares issued net of expenses


363


900


-


1,263


-


1,263




Total contributions by owners of the parent recognised in equity


363


900


-


1,263


-


1,263




Dividend paid to non-controlling interest


-


-


-


-


(113)


(113)




Total transactions recognised directly in equity


-


-


-


-


(113)


(113)




At 30 June 2017 (unaudited)


1,320


4,843


(1,506)


4,657


1,371


6,028




Actuarial loss


-


-


(66)


(66)


-


(66)




(Loss)/profit for the period


-


-


(950)


(950)


54


(896)




Total comprehensive (loss)/ income for the period


-


-


(1,016)


(1,016)


54


(962)




Changes in ownership interest in a subsidiary


-


-


(34)


(34)


34


-




Dividend paid to non-controlling interest


-


-


-


-


(112)


(112)




Total distributions recognised directly in equity


-


-


(34)


(34)


(78)


(112)




At 31 December 2017 (audited)


1,320


4,843


(2,556)


3,607


1,347


4,954




(Loss)/profit for the period


-


-


(728)


(728)


585


(143)




Total comprehensive (loss)/income for the period


-


-


(728)


(728)


585


(143)




Proceeds from shares issued net of expenses


380


946


-


1,326


-


1,326




Total contributions by owners of the parent recognised in equity


380


946


-


1,326


-


1,326




At 30 June 2018 (unaudited)


1,700


5,789


(3,284)


4,205


1,932


6,137





 

Notes to the financial information
1.    General information
The Company is a limited liability company incorporated and domiciled in the UK. The address of its registered office is 11 Laura Place, Bath BA2 4BL and the registered number of the company is 00507461.
The Company is listed on AIM.
This condensed consolidated half-yearly financial information was approved by the Directors for issue on 27 September 2018.
This condensed consolidated half-yearly financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.  Statutory accounts for the year ended 31 December 2017 were approved by the Board of directors on 10 May 2018 and delivered to the Registrar of Companies.  The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
This condensed consolidated half-yearly financial information has not been reviewed or audited.
There is no seasonality or cyclicality in relation to the condensed consolidated half-yearly financial information.
Basis of preparation
This condensed consolidated half-yearly financial information for the six months ended 30 June 2018 has been prepared in accordance with IAS 34, 'Interim Financial Reporting' as adopted by the European Union.  The condensed consolidated half-yearly financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2017, which have been prepared in accordance with IFRSs as adopted by the European Union.
Accounting policies
The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2017, as described in those annual financial statements.  Where new standards, or amendments to existing standards, have become effective during the year there has been no material impact on the results of the Group.
2.    Exceptional item
Sunline Direct Mail Limited
As announced on 13 June 2018, Sunline Direct Mail Limited ("SDM") filed a notice of intention to appoint an administrator.  The company went into liquidation on 26 June 2018.  The impact of the new General Data Protection Regulation ("GDPR"), as highlighted by the Royal Mail in its recent results where it forecast a severe decline in volumes, coupled with the reaction to the plastics debate prompted by the BBC's Blue Planet Television series, had an impact on the sector.  As a result, SDM's order book did not fill at the rate that management would have expected it to at that time of year, being the "golden period" from August to November.  As the business was likely to have required significant amounts of additional funding to carry on trading, the CEPS PLC Board made the decision to make no further funding available.
The exceptional item relates to SDM.  At 30 June 2018 this is a provisional result as the company is subject to liquidation processes.  This will be updated at the year end.    
3.    Segmental analysis
All activities, apart from those relating to Sunline, are classed as continuing.
The chief operating decision maker of the Group is its Board.  Each operating segment regularly reports its performance to the Board which, based on those reports, allocates resources to and assesses the performance of those operating segments.
Operating segments and their principal activities are as follows:
-     Aford Awards, a sports trophy and engraving company;
-     CEM Press, a manufacturer of fabric and wallpaper pattern books, swatches and shade cards;
-     Davies Odell, a manufacturer and distributor of protection equipment, matting and footwear components;
-     Friedman's, a convertor and distributor of specialist Lycra;
-     Hickton Consultants, a provider of services to the construction industry together with BRCS (Building Consultants), a leading provider of building control services nationally;
-     Sunline, a supplier of services to the direct mail market (see note 2).
 
The United Kingdom is the main country of operation from which the Group derives its revenue and operating profit and is the principal location of the assets of the Group.  The Group information provided below, therefore, also represents the geographical segmental analysis. Of the £12,174,000 

(2017: £12,077,000) revenue, £10,790,000 (2017: £10,735,000) is derived from UK customers.
The Board assesses the performance of each operating segment by a measure of adjusted earnings before interest, tax, depreciation and amortisation and Group costs.  Other information provided to the Board is measured in a manner consistent with that in the financial statements.
i)     Results by segment
Unaudited 6 months to 30 June 2018




 


Aford  Awards


CEM
Press


Davies Odell


 
Friedman's


 
Hickton


Continuing Operations


Discon-tinued
Sunline


 
Total

Group




 


£'000


£'000


£'000


£'000


£'000


£'000


£'000


£'000




Revenue


1,065


1,245


1,956


2,792


1,998


9,056


3,118


12,174




Segmental result (EBITDA) before exceptional costs


231


(48)


(16)


358


285


810


(202)


608




Exceptional item


-


-


-


-


-


 


20


20




Segmental result (EBITDA) after exceptional costs


231


(48)


(16)


358


285


810


(182)


628




Depreciation and amortisation charge


(4)


(35)


(11)


(60)


(50)


(160)


(148)


(308)




Group costs


 


 


 


 


 


(165)


-


(165)




Net finance costs


 


 


 


 


 


(139)


21


(118)




Profit/(loss) before taxation


 


 


 


 


 


346


(309)


37




Taxation


 


 


 


 


 


(180)


-


(180)




Profit/(loss) for the period


 


 


 


 


 


166


(309)


(143)




Unaudited 6 months to 30 June 2017




 


Aford  Awards


CEM
Press


Davies Odell


 
Friedman's


 
Hickton


Continuing Operations


Discon-
tinued
Sunline


 
Total

Group




 


£'000


£'000


£'000


£'000


£'000


£'000


£'000


£'000




Revenue


1,044


1,204


1,817


2,610


1,822


8,497


3,580


12,077




Segmental result (EBITDA)


243


(84)


(5)


486


286


926


378


1,304




Depreciation and amortisation charge


(11)


(39)


(39)


(17)


(26)


(132)


(136)


(268)




Group costs


 


 


 


 


 


(168)


-


(168)




Net finance costs


 


 


 


 


 


16


(51)


(35)




Profit before taxation


 


 


 


 


 


642


191


833




Taxation


 


 


 


 


 


(158)


-


(158)




Profit for the period


 


 


 


 


 


484


191


675




 
Audited Year to 31 December 2017

 




 


Aford  Awards


CEM
Press


Davies Odell


 
Friedman's


 
Hickton


Continuing Operations


Discon-tinued
Sunline


 
Total

Group




 


£'000


£'000


£'000


£'000


£'000


£'000


£'000


£'000




Revenue


1,907


2,414


3,804


5,053


3,748


16,926


6,675


23,601




Segmental result (EBITDA)


328


(310)


33


1,198


447


1,696


224


1,920




Depreciation and amortisation charge


 


 


 


 


 


(213)


(284)


(497)




Goodwill impairment


 


 


 


 


 


(847)


-


(847)




Group costs


 


 


 


 


 


(322)


-


(322)




Net finance costs


 


 


 


 


 


(107)


(102)


(209)




Net profit on disposal of investments


 


 


 


 


 


10


-


10




Profit before taxation


 


 


 


 


 


217


(162)


55




Taxation


 


 


 


 


 


(276)


-


(276)




Loss for the year


 


 


 


 


 


(59)


(162)


(221)




 
ii)     Assets and liabilities by segment
Unaudited as at 30 June




 


Segment assets


Segment liabilities


Segment net assets/(liabilities)




 


2018


2017


2018


2017


2018


2017




 


£'000


£'000


£'000


£'000


£'000


£'000




CEPS Group


627


746


(755)


(542)


(128)


204




Aford Awards


1,796


1,623


(424)


(419)


1,372


1,204




CEM Press


1,928


2,401


(2,286)


(1,907)


(358)


494




Davies Odell


1,993


2,007


(1,921)


(1,429)


72


578




Friedman's


4,284


3,741


(999)


(993)


3,285


2,748




Hickton


3,474


2,976


(1,580)


(1,675)


1,894


1,301




Sunline


-


2,937


-


(3,438)


-


(501)




Total - Group


14,102


16,431


(7,965)


(10,403)


6,137


6,028




 
Audited as at 31 December 2017




 


Segment assets


Segment liabilities


 Segment net assets/(liabilities)




 


£'000


£'000


£'000




CEPS Group


41


(1,078)


(1,037)




Aford Awards


1,558


(346)


1,212




CEM Press


1,400


(1,627)


(227)




Davies Odell


1,974


(1,401)


573




Friedman's


3,860


(800)


3,060




Hickton


3,368


(1,942)


1,426




Sunline


2,777


(2,830)


(53)




Total - Group


14,978


(10,024)


4,954




 
4.    Earnings per share
 
Basic earnings per share is calculated on the loss after taxation for the period attributable to owners of the Company of £728,000 (2017: profit of £418,000) and on 13,199,940 (2017: 12,659,027) ordinary shares, being the weighted number in issue during the period. 
 
The new shares authorised were not admitted to the AIM market until 3 July 2018.  Consequently, the additional 3,800,060 shares have not been included in the EPS calculation.
 
No adjustment is required for dilution in either period as there are no items that would have a dilutive impact on earnings per share. 
 
5.    Net debt and gearing
Gearing ratios at 30 June 2018, 30 June 2017 and 31 December 2017 are as follows:
 




 


Group
unaudited
 30 June 2018


Company unaudited
 30 June 2018


Group
unaudited
 30 June 2017


Group audited
31 December 2017




 


£'000


£'000


£'000


£'000




 


 


 


 


 




Total borrowings


2,376


485


3,366


4,103




Less: cash and cash equivalents


(1,528)


(304)


(1,369)


(1,371)




Net debt


848


181


1,997


2,732




Total equity


6,137


3,427


6,028


4,954




Gearing ratio


14%


5%


33%


55%




 
In order to provide a more meaningful gearing ratio, total borrowings have been revised to be the sum of bank borrowings and third-party debt, excluding loan notes used to finance the Group's acquisitions.  The prior period comparatives have also been revised.
 
6.       Share capital and premium




 


Number of shares


Share capital

£'000


Share premium

£'000


Total

£'000




 


 


 


 


 




At 1 January 2018


13,199,940


1,320


4,843


6,163




Shares authorised, but not issued


3,800,060


380


950


1,330




Transaction costs


-


-


(4)


(4)




At 30 June 2018


17,000,000


1,700


5,789


7,489




 
7.       Related-party transactions
The Group has no material transactions with related parties which might reasonably be expected to influence decisions made by users of these financial statements.
During the period the Company entered into the following transactions with its subsidiaries:




 


 
Aford Awards (Holdings) Limited
£'000


 
 
CEM Teal Limited
£' 000


 
 
Davies Odell Limited
£'000


 
 
Signature Fabrics Limited
£'000


 
 
Hickton Holdings Limited
£'000


Sunline Direct Mail (Holdings) Limited
£' 000




Receipt of equity share dividend


 


 


 


 


 


 




- 2018


-


-


-


-


 


-




- 2017


-


-


-


137


-


-




- For the year to 31 December 2017 (audited)


-


-


-


275


-


-




Receipt/(write-back) of preference share dividend


 


 


 


 


 


 




- 2018


-


-


-


-


-


(52)




- 2017


-


-


-


-


-


13




- For the year to 31 December 2017 (audited)


-


-


-


-


-


26




Receipt/(write-back) of loan note interest


 


 


 


 


 


 




- 2018


27


48


3


-


24


(125)




- 2017


28


21


-


-


20


21




- For the year to 31 December 2017 (audited)


56


69


7


-


49


93




Receipt/(write-back) of management charge income


 


 


 


 


 


 




- 2018


10


-


8


18


6


1




- 2017


10


-


9


18


5


8




- For the year to 31 December 2017 (audited)


20


-


15


35


13


5




Amount owed to the Company


 


 


 


 


 


 




-     30 June 2018


618


1,872


194


-


623


-




-     30 June 2017


700


1,066


155


-


627


1,811




-     31 December 2017 (audited)


700


1,593


153


-


627


2,414




 
8.       AIM Compliance Committee
CEPS PLC is quoted on AIM and, as such, under AIM Rule 31 the Company is required to:
 
1.       have in place sufficient procedures, resources and controls to enable its compliance with the AIM Rules;
2.       seek advice from its nominated advisor ("Nomad") regarding its compliance with the AIM Rules whenever appropriate and take that advice into account;
3.       provide the Company's Nomad with any information it requests in order for the Nomad to carry out its responsibilities under the AIM Rules for Companies and the AIM Rules for Nominated Advisers
4.       ensure that each of the Company's directors accepts full responsibility, collectively and individually, for compliance with the AIM Rules; and
5.       ensure that each director discloses without delay all information which the Company needs in order to comply with AIM Rule 17 (Disclosure of Miscellaneous Information) insofar as that information is known to the director or could with reasonable diligence be ascertained by the director.
 
In order to ensure that these obligations are being discharged the Board has established a committee of the Board (the "AIM Compliance Committee"), chaired by Vivien Langford, an executive director of the Company.
 
Having reviewed relevant Board papers and met with the Company's Executive Board and the Nomad to ensure that such is the case, the AIM Compliance Committee is satisfied that the Company's obligations under AIM Rule 31 have been satisfied during the period under review.
 
9.       Equity Placing
On 28 June 2018 CEPS PLC successfully placed 3,800,060 new ordinary shares at a price of 35 pence per share to raise £1,330,021 (before expenses of £4,000) with institutional and private investors. The placing's proceeds were used to repay a loan and for general working capital purposes.
 
Following the issue of the placing shares on 3 July 2018 (post period end), the enlarged issued share capital of CEPS PLC comprised 17,000,000 ordinary shares of 10 pence each.
 
Statement of directors' responsibility
The directors confirm that, to the best of their knowledge, these condensed consolidated half‑yearly financial statements have been prepared in accordance with IAS 34 as adopted by the European Union.  The interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:
 
·           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
 
·           material related-party transactions in the first six months of the financial year and any material changes in the related-party transactions described in the last Annual Report.
 
A list of current directors is maintained on the CEPS PLC Group website: www.cepsplc.com




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR LIFFDAFIDFIT