REG - Elecosoft PLC - Interim Results <Origin Href="QuoteRef">ELCO.L</Origin> - Part 2

ElecoAnnouncement

25/09/2017 07:07

- Part 2: For the preceding part double click  ID:nRSY6394Ra 

        4,272          8,452         
   Site management             225                      229            474           
   Estimating                  1,521                    1,507          2,964         
   Engineering                 1,672                    1,389          2,827         
   CAD/Design                  562                      573            1,137         
   Visualisation               979                      799            1,821         
   Information management      492                      -              120           
                               10,010                   8,769          17,795        
                                                                                     
 
 
The Group utilises resellers to access certain markets. Revenue by sales
channel represents revenue from external customers. 
 
                                                                       
                                                                       
                                                         Year ended    
                 six months to 30 June    31 December    
                 2017                     2016           2016          
                 £'000                    £'000          £'000         
                                                                       
   Direct        9,398                    8,273          16,674        
   Reseller      612                      496            1,121         
                 10,010                   8,769          17,795        
                                                                       
 
 
5. Operating profit 
 
Operating profit for the period is after charging/(crediting) the following
items: 
 
                                                                                                                               
                                                                                                                 Year ended    
                                                               six months to 30 June         31 December         
                                                               2017                          2016                2016          
                                                               £'000                         £'000               £'000         
                                                                                                                               
   Software product development                         1,054                         1,258               1,968              
   Depreciation of property, plant and equipment        119                           79                  207                
   Amortisation of intangible assets acquired           255                           173                 389                
   Amortisation of capitalised development costs        165                           110                 242                
   Profit on disposal of property, plant and equipment  (8)                           (20)                (28)               
   Foreign exchange (gains)/losses                      13                            (10)                (73)               
   Acquisition expenses                                        -                             -                   212           
   Directors termination payment                        -                             109                 166                
                                                                                                                               
 
 
6. Net finance (cost)/income 
 
Finance income and costs disclosed in the income statement is set out below: 
 
                                                                                                                   
                                                                                                     Year ended    
                                                     six months to 30 June        31 December        
                                                     2017                         2016               2016          
                                                     £'000                        £'000              £'000         
   Finance income:                                                                                                 
   Bank and other interest receivable          -                            2                  3                 
   Finance costs:                                                                                                  
   Bank overdraft and loan interest            (49)                         (41)               (84)              
   Finance leases and hire purchase contracts  (3)                          (5)                (9)               
   Total net finance cost                            (52)                         (44)               (90)          
                                                                                                                   
 
 
7. Earnings per share 
 
The calculations of the earnings per share are based on profit after tax
attributable to the ordinary equity shareholders of the Company and the
weighted average number of shares in issue for the reporting period. 
 
                                                                                                                                     
                                                                                                                      Year ended     
                                                          six months to 30 June              31 December              
                                                          2017                               2016                     2016           
                                                                                                                                     
   Profit attributable to shareholders                    £804,000                           £431,000                 £1,243,000     
                                                                                                                                     
   Basic weighted average number of shares    76,192,757                         73,970,534               74,433,243              
   Dilutive effect of share options                       1,028,721                          294,000                  1,029,000      
   Diluted weighted average number of shares  77,221,478                         74,264,534               75,462,243              
                                                                                                                                     
   Earnings per share                                                                                                                
   Basic earnings per share                               1.1                    p           0.6          p           1.7         p  
   Diluted earnings per share                             1.0                    p           0.6          p           1.6         p  
                                                                                                                                     
 
 
Shares held by the Employee Share Ownership Trust are excluded from the
weighted average number of shares in the period. 
 
8. Dividends 
 
The Board have recommended the payment of an interim scrip dividend of 0.20p
per ordinary share or cash dividend alternative of 0.20p per ordinary share
(2016 H1: cash dividend 0.15p) Dividends of £134,000 (2016 H1: £nil) were paid
during the six months to June 2017. 
 
9. Other intangible assets 
 
Other intangible assets comprise capitalised development costs, acquired
customer relationships and purchased intangible assets. Additions in the six
months to 30 June 2017 represent purchased intangible assets of £37,000 (2016:
£43,000) and internal development costs capitalised of £494,000 (2016:
£175,000) Internal development relates to software development projects that
meet the accounting policy criteria for capitalisation. 
 
10. Borrowings 
 
The bank loans and overdrafts are repayable as follows: 
 
                                                                                       
                                             at 30 June  at 30 June  at 31 December    
                                             2017        2016        2016              
                                             £'000       £'000       £'000             
   In one year or less                  969  1,291       1,129                       
   Between one and two years     790    597  790                     
   Between two and five years    1,185  -    1,580                   
                                             2,944       1,888       3,499             
                                                                                       
 
 
11. Accruals and deferred income 
 
                                                                         
                               at 30 June  at 30 June  at 31 December    
                               2017        2016        2016              
                               £'000       £'000       £'000             
   Accruals                    1,760       1,696       1,602             
   Deferred income      4,638  4,202       4,401                       
                               6,398       5,898       6,003             
                                                                         
 
 
Deferred income represents income from software maintenance and support
contracts and is taken to revenue in the income statement on a straight line
basis in line with the service and obligations over the term of the contract. 
 
12. Related Party Disclosures 
 
Transactions between Group undertakings, which are related parties, have been
eliminated on consolidation and are not disclosed in this note. 
 
The Directors of the Company had no material transactions with the Company
during the six months to 30 June 2017, other than a result of service
agreements. An amount of £3,000 (2016: £3,000) was paid to JHB Ketteley & Co
Limited for a contribution to the office costs at Burnham-on-Crouch. 
 
 For further information please contact:                                                                                                                   
                                                                                                                                                           
 Elecosoft plcJHB Ketteley, Executive ChairmanJonathan Hunter, Group Marketing & Business Development Director  www.elecosoft.com Tel: 0207 422 0044       
                                                                                                                                                           
                                                                                                                                                           
 finnCap Ltd                                                                                                                                               
 Adrian Hargrave / Kate Bannatyne (Corporate Finance)Camille Gochez (Corporate Broking)                         Tel: 0207 220 0500                         
                                                                                                                                                           
 Redleaf Communications                                                                                                                                    
 Elisabeth Cowell / David Ison/ Fiona Norman                                                                    Tel: 0207 382 4730elecosoft@redleafpr.com  
 
 
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