REG - TEG Group (The) PLC - Half Yearly Report <Origin Href="QuoteRef">TGE.L</Origin> - Part 2

Generation EssentialsAnnouncement

17/10/2014 13:54

- Part 2: For the preceding part double click  ID:nRSd0232Ta 

                   Number       £'000  
 At 1 January 2014 and 30 June 2014                       188,428,648  1,884  
 
 
 Deferred Shares of £0.04 each       Number       £'000  
 At 1 January 2014 and 30 June 2014  117,439,360  4,698  
 
 
The deferred shares have no voting rights. The shares are not entitled to any
dividend or other distribution or to participate in any way in the income or
profits of the Group. 
 
5.     Loss per share 
 
                                                                                                       6 months      6 months      Year              
                                                                                                       ended         ended         ended             
                                                                                                       30 June 2014  30 June 2013  31 December 2013  
                                                                                                       £'000         £'000         £'000             
                                                                                                                                                     
 Loss for the financial year after tax                                                                 (1,440)       (763)         (2,502)           
 Adjustments to basic earnings                                                                                                                       
 Exceptional costs                                                                                     30            -             467               
 Negative goodwill                                                                                     (1,058)       -             -                 
 Underlying losses before exceptional costs                                                            (2,468)       (763)         (2,035)           
                                                                                                                                                     
                                                                                                       Number        Number        Number            
 Weighted average number of shares for the purposes of basic, diluted and underlying losses per share  188,428,648   188,428,648   188,428,648       
                                                                                                                                                     
                                                                                                                                                     
                                                                                                       Pence         Pence         Pence             
 Basic loss per share                                                                                  (0.76)        (0.40)        (1.32)            
 Diluted loss per share                                                                                (0.76)        (0.40)        (1.32)            
 Basic underlying loss per share before exceptional costs                                              (1.31)        (0.40)        (1.08)            
 
 
Underlying losses per share has been disclosed to give a clear understanding
of the Group's underlying trading performance.  It has been calculated using
the underlying earnings figures above and the weighted average number of
ordinary shares above. 
 
Diluted losses per share is equal to the basic loss per share as the share
options in issue at 30 June 2014 are anti-dilutive in respect of the diluted
loss per share calculation and have therefore not been included. 
 
6.     Business combination 
 
On 31 March 2014, the Group acquired the business and assets relating to a
composting operation at Hillbarton, near Exeter. The acquisition was from
Glendale Recycling Limited, a subsidiary of Parkwood Holdings Plc. The
acquisition was on a cash-free, debt-free basis for a nominal initial
consideration of £1 with a further potential contingent consideration of up to
£400,000 dependent upon the profit performance of the operation over the next
four years. The transaction has been accounted for through the application of
IFRS 3 Business Combination (Revised 2008) and using the acquisition method of
accounting. 
 
The Hillbarton site is a combined In Vessel ("IVC") and Open Air Windrow
("OAW") composting facility with a combined capacity of 34,000 tonnes per
annum. It has a permitted capacity of 50,000 tonnes per annum, allowing the
potential for future expansion. The operation benefits from establish
composting brands and supplies bagged compost products to the local retail
market. 
 
Fair values are provisional and will be reviewed during the hindsight period
as further information is gathered relating to the fair values at the
acquisition date. 
 
The amounts provisionally realised for each class of the acquiree's assets and
liabilities recognised at the acquisition date are as follows: 
 
                                               Carrying amount under IFRS  Provisional fair value adjustments  Provisional fair value to the group  
                                               £'000                       £'000                               £'000                                
                                                                                                                                                    
 Net assets acquired                                                                                                                                
 Property, plant and equipment                 1,546                       (415)                               1,131                                
 Total assets                                  1,546                       (415)                               1,131                                
                                                                                                                                                    
 Hire Purchase agreements                      (73)                        -                                   (73)                                 
 Total liabilities                             (73)                        -                                   (73)                                 
                                                                                                                                                    
 Net assets                                    1,473                       (415)                               1,058                                
 Negative goodwill arising on the acquisition                                                                  (1,058)                              
                                                                                                               -                                    
                                                                                                                                                    
 Satisfied by                                                                                                                                       
 Cash consideration                                                                                            -                                    
 
 
This information is provided by RNS
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