REG - Dillistone Group PLC - Interim Results

DillistoneAnnouncement

23/09/2020 07:01

RNS Number : 7864Z
  
Dillistone Group PLC
  
23 September 2020
  
 

 
Dillistone Group Plc
("Dillistone", the "Company" or the "Group")
Interim Results
 
Dillistone Group Plc, the AIM quoted supplier of software for the international recruitment industry, announces its results for the six months ended 30 June 2020.
 
 
Key points of the unaudited interim report:
 
·    The management of our cost base and better operational performance, has led to improved performance in H1 2020, versus the same period in 2019, despite Covid-19 having a significant negative impact on our clients and therefore our revenue
·    Operating profit of £0.048m before acquisition related items (2019: loss £0.044m)
·    Group is cash generative at an operational level
·    Cash balances of £1.732m at 30 June 2020 (2019: £0.769m) 
·    CBIL loan of £1.5m received in June 2020 
·    Recurring revenue of £3.0m (2019: £3.5m) 
·    Recurring revenue covers 101% of operational overheads (2019: 91%)
·    Recurring revenues represent 90% of total revenue (2019: 83%)
·    NED Mike Love to retire from the Board, in line with long term plan, on the announcement of the interim results.
 
 
Commenting on the results and prospects, Giles Fearnley, Non-Executive Chairman, said:
 
"Any business serving the recruitment sector is going to find a global pandemic to be a difficult environment to operate through.  However, despite this, the Group is delighted to report significantly improved operational performance in the period under review.
 
"Whilst Covid-19 will continue to impact our revenues, the steps we've taken to manage our costs while also continuing to invest in product development will benefit the business through the medium and long term. 
 
"I would like to take this opportunity to sincerely thank Dr Mike Love for his services to the Company.  Mike was our Chairman for many years, prior to stepping into the role of NED in January, with a view to retiring at the time of our Interim results announcement.  Mike remains fully supportive of the Board strategy and a committed shareholder."
 
                                           
 
Enquiries:




Dillistone Group Plc


 


 Via Walbrook PR




Jason Starr


Chief Executive


 




Julie Pomeroy


Finance Director


 




 


 


 




WH Ireland Limited (Nominated adviser)


 


 




Chris Fielding


Managing Director, 
Corporate Finance


020 7220 1650




 


 


 




Walbrook PR


 


 




Tom Cooper / Nick Rome


 


020 7933 8780




 


 


dillistone@walbrookpr.com




 
 
Notes to Editors: 
 
Dillistone Group Plc is a leader in the supply and support of software and services to the recruitment industry. Dillistone operates through the Ikiru People brand.
 
The Group develops, markets and supports the FileFinder, Infinity, Midoffice, ISV and GatedTalent products. 
 
Dillistone was admitted to AIM, a market operated by the London Stock Exchange plc, in June 2006.  The Group employs around 100 people globally with offices in Basingstoke, Southampton, New Jersey and Sydney.
 
Recruitment Software:  https://www.voyagersoftware.com/recruitment-software-blog/best-recruitment-software-agencies/
 
Temporary Recruitment Software:  https://www.voyagersoftware.com/temporary-recruitment-agency-software/
 
ISV Skills Testing:  https://www.isv.online
 
GatedTalent:  https://www.talentis.global
 
FileFinder:  https://www.dillistone.com
 
 
 
 
 
Chairman's Statement 
 
 
2020 started well for the Group with our early months delivering results ahead of internal expectations.  The Covid-19 pandemic has obviously had a significant impact on our clients (predominantly recruitment companies) and therefore our business.


Nevertheless, I am able to report a significantly improved set of results following the steps taken in 2019 to reorganise the business and the decisive action by management in the early days of the pandemic.
 
The business has returned to profit (before acquisition related items) and has put in place a cost base that reflects current revenues.  The streamlined operating structure has allowed us to do this without negatively impacting on our service levels.  Indeed, our Trustpilot scores since January 1st have seen us achieve an excellent rating with 4.5 stars out of a maximum of 5.  
 
Government support clearly played a part in our H1 results and, with this expecting to be ending, we have now taken further steps to minimise our cost base.  This will lead to some reorganisation costs being reported in H2.
 
Following the 2019 reorganisation, the previous divisional structure has been amalgamated under one trading name, Ikiru People, and therefore divisional results will no longer be reported.  
 
 
Financial Performance
 
Revenue in the six months ended 30 June 2020 amounted to £3.359m, down £0.824m (20%) (2019: £4.183m) due to Covid-19 and loss of clients and / or reductions in users, coupled with the withdrawal of a product in December 2019.  Recurring revenues decreased by 13% to £3.029m over the comparable period last year (2019: £3.469m) and represented 90% of total revenues (2019: 83%).  Non-recurring revenues were down at £0.290m (2019: £0.549m).   
 
Cost of sales reduced to £0.328m (2019: £0.419m).  Excluding amortisation and depreciation, administration expenses reduced by £0.774m to £2.305m (2019: £3.079m) in part reflecting the 2019 reorganisation and in part the impact of Covid-19.  Such administration expenses are covered 131% by recurring revenue (2019: 113%).  Excluding acquisition related items, depreciation and amortisation decreased by 7% to £0.678m (2019: £0.729m).  Including such operational amortisation in administrative costs they are covered 101% by recurring revenue (2019: 91%).  
 
Administrative costs also include £0.106m (2019: £0.198m) relating to the amortisation of acquisition intangibles.  In 2019, administration costs also included reorganisation costs of £0.115m (2020: £nil). The loss for the period before taxation reduced to £0.110m (2019: loss £0.397m).  The Group generated a profit after tax and before acquisition related costs of £0.019m. The loss for the period was £(0.088m) (2019: £(0.320m)).
 
There is a tax credit for the period of £0.022m (2019: credit £0.077m).  The 2019 and 2020 tax credits have benefited from claims in the UK for research and development tax credits reflecting the continuing development of our products.  Also, the tax credit was impacted through the increase in the rate for deferred tax to 19% (2019:17%).
 
Cash generated from operating activities was £0.403m (2019: £0.225m).  Total cash flows in the 6 months ended 30 June 2020 showed a net inflow of £1.043m (2019: inflow £0.063m).  The main elements of non-operating expenditure related to investment in new product development of £0.499m (2019: £0.615m) and the receipt of £1.500m from the CBIL loan scheme and a loan under the US payroll protection program of £0.086m.  At 30 June 2020, we had cash reserves of £1.732m (2019: £0.769m) and £2.309m in borrowings (2019: £0.885m).
 
In view of the Covid-19 pandemic and the uncertainty this has brought, the Board has decided not to pay an interim dividend this year (2019: nil).  
 
 
Strategy
 
The Group continues to invest in its products which it sees as fundamental to the future success of the Group.  Dillistone is an innovator and thought leader in the recruitment sector, designing and launching technology solutions for recruiters whose working practices are ever evolving.
 
The Board restructured our product portfolio in 2019, withdrawing certain products from the market, and refocussing our development expenditure on projects that, we believe, will deliver long term benefits to shareholders.  We expect to begin to see the benefit of this strategy in 2021.
 
 
Outlook
 
Development remains high on our agenda and we are continuing to invest in both current and new products which will enable the recruiters of the future.  We are excited by the opportunities that this investment will deliver and look forward to updating the market further. 
 
While Covid-19 will continue to impact upon our revenues, with a stable core business through our long-term underlying client base, a strong balance sheet as a result of our £1.5m CBIL loan, administrative overheads (excluding depreciation, amortisation and other one off costs) that are covered by our recurring revenue, improved operational performance and ongoing investment in product development,  we believe we are well positioned to deliver growth as we emerge from the current crisis.
 
Giles Fearnley
Non-Executive Chairman

 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 




 


Note


6 Months ended 30 June


Year ended 31 Dec




 


 


2020


2019


2019




 


 


Unaudited


Unaudited


 Audited




 


 


£'000


£'000


£'000




Revenue


4


3,359


4,183


8,027




Cost of sales


 


(328)


(419)


(849)




Gross profit


 


3,031


3,764


7,178




Administrative expenses


 


(3,089)


(4,121)


(8,268)




 


 


 


 


 




Result from operating activities 


4


(58)


(357)


(1,090)




 


 


 


 


 




Analysed as:


 


 


 


 




Result from operating activities before acquisition related items


 


48


(44)


(207)




 


 


 


 


 




Acquisition and reorganisation related items


5


(106)


(313)


(883)




Result after acquisition related items


(58)


(357)


(1090)




 


 


 


 


 




Financial cost


 


(52)


(40)


(91)




(Loss) before tax


 


(110)


(397)


(1,181)




 


 


 


 


 




Tax income


6


22


77


339




(Loss) for the period


 


(88)


(320)


(842)




 


 


 


 


 




Other comprehensive income net of tax:


 


 


 




Currency translation differences


 


(15)


(26)


(16)




Total comprehensive (loss) for period net of tax


 


(103)


(346)


(858)




 


 


 


 


 




Earnings per share (pence)


 


 


 


 




Basic


8


(0.45)


(1.63)


(4.28)




Diluted


 


(0.45)


(1.63)


(4.28)




 
 
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION




 


 


 


 




 


As at 30 June 2020


As at 30 June 2019


As at 31 Dec 2019


 




 


Unaudited


unaudited


Audited


 




ASSETS


£'000


£'000


£'000


 




Non-current assets


 


 


 


 




Goodwill


3,415


3,415


3,415


 




Intangible assets


4,022


4,542


4,234


 




Right of use assets


735


763


754


 




Property plant & equipment


38


69


54


 




 


8,210


8,789


8,457


 




Current assets


 


 


 


 




Inventories


-


2


-


 




Trade and other receivables


1,159


1,750


1,222


 




Current tax receivable


-


112


293


 




Cash and cash equivalents


1,732


769


690


 




 


2,891


2,633


2,205


 




Total assets


11,101


11,422


10,662


 




 


 


 


 


 




EQUITY AND LIABILITIES


 


 


 


 




Equity


 


 


 


 




Share capital


983


983


983


 




Share premium


1,631


1,631


1,631


 




Merger reserve


365


365


365


 




Convertible loan reserve


14


14


14


 




Retained earnings


783


1,367


871


 




Share option reserve


106


112


94


 




Translation reserve


32


37


47


 




Total equity


3,914


4,509


4,005


 




 


 


 


 


 




Liabilities


 


 


 


 




Non current liabilities


 


 


 


 




Trade and other payables


341


559


443


 




Lease liabilities


690


772


741


 




Borrowings


1,995


645


523


 




Deferred tax


323


393


340


 




Total non-current liabilities


3,349


2,369


2,047


 




Current liabilities


 


 


 


 




Trade and other payables


3,410


4,265


3,977


 




Lease liabilities


100


39


82


 




Borrowings


314


240


551


 




Current tax payable


14


-


-


 




Total non-current liabilities


3,838


4,544


4,610


 




Total liabilities


7,187


6,913


6,657


 




 


 


 


 




Total liabilities and equity


11,101


11,422


10,662


 




 
The interim report was approved by the Board of directors and authorised for issue on 22 September 2020.  They were signed on its behalf by:
JS Starr                                                J P Pomeroy

 
 
 
 
 
 
CONSOLIDATED STATEMENT OF CASH FLOWS




 


 


 




 


As at 30 June


 




 


2020


2019


2019




 


Unaudited 


Unaudited


Audited




 


 


 


 




 


 £'000 


 £'000 


 £'000 




Operating Activities 


 


 


 




(Loss) before tax 


(110)


(397)


(1,181)




Adjustment for 


 


 


 




  Financial cost 


51


40


91




  Depreciation and amortisation 


784


918


1,794




  Share option expense 


12


6


14




  Other including foreign exchange adjustments arising from operations 


16


(20)


(33)




Operating cash flows before movements in working capital 


753


547


685




 


 


 


 




increase / (decrease) in receivables 


65


(234)


282




Decrease in inventories 


-


1


3




(decrease) in payables 


(730)


(229)


(603)




Taxation repaid


315


140


167




 


 


 


 




Net cash generated from operating activities 


403


225


534




 


 


 


 




Investing Activities 


 


 


 




Purchases of property plant and equipment 


(2)


(7)


(29)




Proceeds from sale of assets


-


10


2




Investment in development costs 


(499)


(615)


(1,070)




Net cash used in investing activities 


(501)


(612)


(1,097)




 


 


 


 




Financing Activities 


 


 


 




Finance cost 


(49)


(23)


(83)




Lease payments made 


(68)


(20)


(49)




New loan 


1,586


500


500




Bank loan repayments


(40)


(7)


(126)




Utilisation of banking facility


(288)


-


288




Net cash generated from financing activities 


1,141


450


530




 


 


 


 




Net change in cash and cash equivalents 


1,043


63


(33)




Cash and cash equivalents at beginning of the period 


690


725


725




Effect of foreign exchange rate changes 


(1)


(19)


(2)




 


 


 


 




Cash and cash equivalents at end of period 


1,732


769


690




 
 
 
 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY




 


 Share 


 Share 


 Merger 


Retained 


Convertible


 Share 


 Foreign 


 


 Total 




 


capital 


premium 


Reserve 


earnings 


loan reserve


option 


exchange 


 


 




 


 £'000 


 £'000 


 £'000 


 £'000 


£'000


 £'000 


 £'000 


 


£'000 




 


 


 


 


 


 


 


 


 


 




Balance at 31 December 2019 


983


1,631


365


871


14


94


47


 


4,005




Comprehensive income 


 


 


 


 


 


 


 


 


 




Loss for the 6 months ended 30 June 2020 


 - 


 - 


 - 


(88)


-


 - 


 - 


 


(88)




Other comprehensive income 


 


 


 


 


 


 


 


 


- 




Exchange differences on translation of overseas operations 


 - 


 - 


 - 


 - 


-


 - 


(15)


 


(15)




Total comprehensive (loss) 


 - 


 - 


 - 


(88)


-


- 


(15)


 


(103)




Transactions with owners 


 


 


 


 


 


 


 


 


 




Share option charge 


 - 


 - 


 - 


 - 


-


12


 - 


 


12




 


 


 


 


 


 


 


 


 


 




Balance at 30 June 2020 


983


1,631


365


783


14


106


32


 


3,914




 


 


 


 


 


 


 


 


 


 




Balance at 31 December 2018 


983


1,631


365


1,687


14


106


63


 


4,849




Comprehensive income 


 


 


 


 


 


 


 


 


 




Loss for the 6 months ended 30 June 2019 


 - 


 - 


 - 


(320)


-


 - 


 - 


 


(320)




Other comprehensive income 


 


 


 


 


 


 


 


 


- 




Exchange differences on translation of overseas operations 


 - 


 - 


 - 


 - 


-


 - 


(26)


 


(26)




Total comprehensive (loss) 


 - 


 - 


 - 


(320)


-


- 


(26)


 


(346)




Transactions with owners 


 


 


 


 


 


 


 


 


 




Share option charge 


 - 


 - 


 - 


 - 


-


6


 - 


 


6




 


 


 


 


 


 


 


 


 


 




Balance at 30 June 2019 


983


1,631


365


1,367


14


112


37


 


4,509




 
 
 
 
 
NOTES TO THE INTERIM




 NOTES TO THE UNAUDITED INTERIM REPORT




CONSOLIDATED STATEMENT OF 
1.         Basis of Preparation
 
The financial information for the six months ended 30 June 2020 included in this condensed interim report comprises the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the consolidated statement of changes in equity and the related notes. 
 
The financial information in these interim results is that of the holding company and all of its subsidiaries (the Group). It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs) but does not include all of the disclosures that would be required under IFRSs. The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2019 and are those which will form the basis of the 2020 financial statements.
 
The comparative financial information presented herein for the year ended 31 December 2019 does not constitute full statutory accounts for that period. The Group's annual report and accounts for the year ended 31 December 2019 have been delivered to the Registrar of Companies. The Group's independent auditor's report on those statutory accounts was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
 
Going concern and the impact of COVID-19. 
 
The uncertainty as to the future impact on the Group of the recent COVID-19 outbreak has been considered as part of the Group's adoption of the going concern basis. The Group has seen many of its clients shrink and with some clients closing.  It has additionally supported many clients through agreeing discounted periods and deferred terms.  Accordingly, the Group will see a reduction in revenue in 2020.  However, the Group has acted quickly, taking advantage of various government schemes, including furloughing, and staff unanimously supporting a temporary pay-cut, including all executive and non-executive directors.  The Group also agreed a 6 month payment holiday on its existing bank loan.  The Company has also secured a loan of £1.5m under the UK Government's Business Interruption Loan (CBIL) scheme.
 
The Board has considered various downside scenarios on the Group's results as a result of the COVID-19 outbreak. In preparing this analysis the following assumptions were made for the base case: a reduction in recurring revenue and non recurring revenue in 2020 with some recovery in the second half of 2020 but with revenue not returning to full pre Covid-19 levels in 2020 or 2021.  A further scenario was modelled ("stress test scenario") that reduced revenue further by £0.275m.   On this basis, the Group's cash reserves would be reduced to £0.293m in September 2021.   The Group also has an overdraft facility of £0.200m.
Based on current trading, the stress test scenario is considered unlikely. However, it is difficult to predict the overall impact and outcome of COVID-19 at this stage, particularly with the concerns of a second wave this autumn. Nevertheless, after making enquiries, and considering the uncertainties described above and after receiving a CBIL loan of £1.5m, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts.  
Dillistone Group Plc is the Group's ultimate parent company.  It is a public listed company and is domiciled in the United Kingdom.  The address of its registered office and principal place of business is 12 Cedarwood, Crockford Lane, Chineham Business Park, Basingstoke, RG24 8WD.  Dillistone Group Plc's shares are listed on the Alternative Investment Market (AIM).
 
2.         Share Based Payments
 
The Company operates two share option schemes.  The fair value of the options granted under these schemes is recognised as an employee expense with a corresponding increase in equity.  The fair value is measured at grant date and spread over the period at the end of which the option holder may exercise the option.  The fair value of the options granted is measured using the Black-Scholes model.
 
3.         Reconciliation of adjusted operating profits to consolidated statement of comprehensive income  
 
 
30 June 2020 and 30 June 2019
 




 


 


Adjusted operating profits


Acquisition related items


 


 


Adjusted operating profits


Acquisition and reorganisation related items


 




 


 


30-Jun-20


 2020*


30-Jun-20


 


30-Jun-19


 2019*


30-Jun-19




 


 


 


 


 


 


 


 


 




 


 


£'000


£'000


 £'000 


 


£'000


£'000


 £'000 




 


 


 


 


 


 


 


 


 




Revenue


 


3,359


-


3,359


 


4,183


-


4,183




 


 


 


 


 


 


 


 


 




Cost of sales


 


(328)


-


(328)


 


(419)


-


(419)




 


 


 


 


 


 


 


 


 




Gross profit


 


3,031


-


3,031


 


3,764


-


3,764




 


 


 


 


 


 


 


 


 




Administrative expenses


 


(2,983)


(106)


(3,089)


 


(3,808)


(313)


(4,121)




 


 


 


 


 


 


 


 


 




Results from operating activities


 


48


(106)


(58)


 


(44)


(313)


(357)




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




Financial cost


 


(52)


-


(52)


 


(38)


(2)


(40)




 


 


 


 


 


 


 


 


 




Profit/(loss) before tax


 


(4)


(106)


(110)


 


(82)


(315)


(397)




 


 


 


 


 


 


 


 


 




Tax expense/(income)


 


23


(1)


22


 


40


37


77




 


 


 


 


 


 


 


 


 




Profit/(loss) for the year 


 


19


(107)


(88)


 


(42)


(278)


(320)




 


 


 


 


 


 


 


 


 




Other comprehensive income net of tax:


 


 


 


 


 


 


 


 




Currency translation differences


 


(15)


-


(15)


 


(26)


-


(26)




 


 


 


 


 


 


 


 


 




Total comprehensive income/ (loss) for the year net of tax


 


4


(107)


(103)


 


(68)


(278)


(346)




 
 
Earnings per share - from continuing activities
 




Basic


 


 


0.10p


 


(0.45)p 


(0.21)p


(1.63)p    




Diluted


 


 


0.10p


 


(0.45)p 


(0.21)p


       (1.63)p


 



 
 
 
 
 
 
 
 
 
 
 
 



 
*  see accounts note 5
 
 
31 December 2019




 


 


Adjusted operating profits


Acquisition and reorganisation related items


 




 


 


31 December
2019


 2019*


31 December 2019




 


 


 


 


 




 


 


£'000


£'000


 £'000 




 


 


 


 


 




Revenue


 


8,027


-


8,027


 




 


 


 


 


 


 




Cost of sales


 


(849)


-


(849)


 




 


 


 


 


 


 




Gross profit


 


7,178


-


7,178


 




 


 


 


 


 


 




Administrative expenses


 


(7,385)


(883)


(8,268)


 




 


 


 


 


 


 




Results from operating activities


 


(207)


(883)


(1,090)


 




 


 


 


 


 




 


 


 


 


 




Financial cost


 


(91)


-


(91)




 


 


 


 


 




Profit/(loss) before tax


 


(298)


(883)


(1,181)




 


 


 


 


 




Tax income


 


268


71


339




 


 


 


 


 




Profit for the year 


 


(30)


(812)


(842)




 


 


 


 


 




Other comprehensive income net of tax:


 


 


 


 




Currency translation differences


 


(16)


-


(16)




 


 


 


 


 




Total comprehensive loss for the year net of tax


 


(46)


(812)


(858)




 
 
Earnings per share - from continuing activities
 




Basic


(0.15)p


(4.28)p




Diluted


(0.15)p


(4.28)p




 
*  see accounts note 5
 
 
4.         Segment reporting
 
 
Following the group reorganisation in 2019, there is only one trading segment in 2020, Ikiru People.
 




Results 


 


 


 




 


 


 


Year ended


 




 


6 months ended 30 June


31 Dec


 




 


2020


2019


2019


 




 


£'000


£'000


£'000


 




 


 


 


 




Results from operating activities


 


 


 




Ikiru People


70


82


(72)


 




 


 


 


 


 




Central


(22)


(126)


(135)


 




 


 


 


 


 




Reorganisation costs


 


 


(578)


 




Amortisation of acquisition intangibles and reorganisation costs


(106)


(313)


(305)


 




Result from operating activities


(58)


(357)


(1,090)


 



 
 
 
 
 
 
 
 
 
 
 



 




Geographical segments


 


 


 




The following table provides an analysis of the Group's revenues by geographical market.




 


 


 


Year ended


 




 


6 months ended 30 June


31 Dec


 




 


2020


2019


2019


 




 


£'000


£'000


£'000


 




UK


2,286


2,888


5,700


 




Europe


529


480


928


 




US


394


624


1,034


 




Australia


150


191


365


 




 


3,359


4,183


8,027


 




 


 


 


 



 
 
 
 
 
 
 
 
 
 
 
 



 




Business Segment


 


 


 




The following table provides an analysis of the Group's revenues by products and services.




 


 


 


Year ended


 




 


6 months ended 30 June


31 Dec


 




 


2020


2019


2019


 




 


£'000


£'000


£'000


 




Recurring


3,029


3,469


6,593


 




Non recurring


290


549


1,160


 




Third party revenues


40


165


274


 




 


3,359


4,183


8,027


 




 


 


 


 




 
'Recurring income' represents all income recognised over time, whereas 'Non-recurring income' represents all income recognised at a point in time.  Recurring income includes all support services, software as a service income (SaaS) and hosting income. Non-recurring income includes sales of new licenses, and income derived from installing those licenses including training, installation, and data translation.  Third party revenues arise from the sale of third party software.



 
 
 
 
 
 
 
 



 
 
5.         Acquisition related items and other one off costs




 


 


 


Year ended




 


6 months ended 30 June


31 Dec




 


2020


2019


2019




 


£'000


£'000


£'000




Reorganisation costs


-


115


578




Amortisation of acquisition intangibles


106


198


305




 


 


 


 




 


 


 


 




 


106


313


883




Interest on bank loan to finance reorganisation


-


2


-




 


 


 


 




Total


106


315


883




 
 
6.         Tax




 


 


 


Year ended




 


6 months ended 30 June


31 Dec




 


2020


2019


2019




 


£'000


£'000


£'000




 


 


 


 




Current tax 


(5)


18


(50)




Prior year adjustment - current tax


-


-


(140)




Deferred tax release


(18)


(58)


(67)




Prior year adjustment - deferred tax


-


-


(24)




Deferred tax re acquisition intangibles


1


(37)


(58)




Tax (income) for the period


(22)


(77)


(339)




 
The tax charge is impacted by the higher rates of corporation tax payable in the US offset by the R&D tax credits available in the UK.  Deferred tax has been provided at the rate of 19% (2019: rates between 17% and 19%).
 
 
7.         Dividends
 
The Board has decided not to pay an interim dividend (2019: nil per share).
 
8.         Earnings per Share




 


 


 


Year ended




 


6 months ended 30 June


31 Dec




 


2020


2019


2019




 


 


 


 




Basic earnings per share


 


 


 




(Loss) attributable to ordinary shareholders


£(88,000)


£(320,000)


£(842,000)




 


 


 


 




Weighted average number of shares


19,668,021


19,668,021


19,668,021




 


 


 


 




Basic (loss) per share (pence)


(0.45)


(1.63)


(4.28) 




 


 


 


 




Diluted earnings per share


 


 


 




(Loss) attributable to ordinary shareholders


£(88,000)


£(320,000)


£(842,000)




 


 


 


 




Diluted weighted average number of shares


19,668,021


19,668,021


19,668,021




 


 


 


 




Diluted (loss) per share (pence)


(0.45)


(1.63)


(4.28) 




 
 
9.         Related party transactions
 
The Company has a related party relationship with its subsidiaries, its directors, and other employees of the Company with management responsibility.  There were no transactions with these parties during the period outside the usual course of business.  
 
The Directors participated in the issue of convertible loan notes in 2017 which carry interest at 8.15% per annum payable quarterly in arrears.  
 
There were no transactions with any other related parties.
 
 
10.       Cautionary statement
 
This Interim Report has been prepared solely to provide additional information to shareholders to assess the Company's strategies and the potential for these strategies to succeed. The Interim Report should not be relied on by any other party or for any other purpose. The Interim Report contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of the Company. These statements are made in good faith based on the information available to them up to the time of their approval of this report. However, such statements should be treated with caution as they involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future.  There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements.  The continuing uncertainty in global economic outlook inevitably increases the economic and business risks to which the Company is exposed. Nothing in this announcement should be construed as a profit forecast.
 

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  END
 
 
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