REG - Gooch & Housego PLC - Preliminary Results <Origin Href="QuoteRef">GHH.L</Origin> - Part 2
02/12/2014 07:11
- Part 2: For the preceding part double click ID:nRSB5476Ya
21.6% 10.3% - 18.9%
Depreciation and amortisation (522) (270) (1,702) (152) (162) (2,808)
Operating profit before amortisation of acquired intangible assets 2,652 965 6,904 274 (376) 10,419
Amortisation of acquired intangible assets - - - - (2,024) (2,024)
Operating profit 2,652 965 6,904 274 (2,400) 8,395
Operating profit margin % 14.1% 13.2% 17.3% 6.6% - 12.0%
Add back Melbourne closure costs 79 59 1,155 91 - 1,384
Operating profit excluding Melbourne closure costs 2,731 1,024 8,059 365 (2,400) 9,779
Adjusted profit margin % 14.5% 14.0% 20.2% 8.8% - 14.0%
¹EBITDA = Earnings before interest, tax, depreciation and amortisation
Management have added back the cost of the Melbourne site closure in the above
analysis. This has been shown because the Directors consider the analysis to
be more meaningful excluding the impact of this non-recurring expense.
2. Segmental analysis (continued)
As restated Aerospace & Defence Life Sciences Industrial Scientific Research Corporate Total
£000 £000 £000 £000 £000 £000
For year ended 30 September 2013
Revenue
Total revenue 17,273 7,353 38,179 4,281 - 67,086
Inter and intra-division - - (3,834) - - (3,834)
External revenue 17,273 7,353 34,345 4,281 - 63,252
Divisional expenses (14,652) (5,799) (27,055) (3,679) (127) (51,312)
EBITDA¹ 2,621 1,554 7,290 602 (127) 11,940
EBITDA % 15.2% 21.1% 21.2% 14.1% - 18.9%
Depreciation and amortisation (550) (220) (907) (143) (294) (2,114)
Operating profit before amortisation of acquired intangible assets 2,071 1,334 6,383 459 (421) 9,826
Amortisation of acquired intangible assets - - - - (875) (875)
Operating profit 2,071 1,334 6,383 459 (1,296) 8,951
Operating profit margin % 12.0% 18.1% 18.6% 10.7% - 14.2%
The above analysis has been restated to reflect the allocation of corporate
expenses on a consistent basis with that adopted in respect of the year ended
30 September 2014.
All of the amounts recorded are in respect of continuing operations.
Analysis of net assets/(liabilities) by location:
2014 2014 2014 2013 2013 2013
Assets Liabilities Net Assets Assets Liabilities Net Assets
£000 £000 £000 £000 £000 £000
United Kingdom 38,387 (12,388) 25,999 38,258 (11,418) 26,840
USA 54,282 (10,345) 43,937 47,751 (9,776) 37,975
Continental Europe 486 (497) (11) 162 (42) 120
Asia Pacific 16 (4) 12 10 (6) 4
93,171 (23,234) 69,937 86,181 (21,242) 64,939
Analysis of revenue by destination:
2014£000 2013£000
United Kingdom 14,412 9,481
USA 29,657 30,213
Continental Europe 14,425 13,821
Asia Pacific and Other 11,562 9,737
Total revenue 70,056 63,252
3. Income tax expense
Analysis of tax charge in the year
2014 2013
£000 £000
Current taxation
UK Corporation tax 1,446 1,263
Overseas tax 630 238
Adjustments in respect of prior year tax charge (165) (304)
Total current tax 1,911 1,197
Deferred tax
Origination and reversal of temporary differences 49 677
Adjustments in respect of prior year deferred tax 504 234
Impact of UK tax rate change to 20% (2013: 20%) 18 43
Total deferred tax 571 954
Income tax expense per income statement 2,482 2,151
4. Earnings per share
The calculation of earnings per 20p Ordinary Share is based on the profit for
the year using as a divisor the weighted average number of Ordinary Shares in
issue during the year. The weighted average number of shares for the year
ended 30 September is given below:
2014 2013
Number of shares used for basic earnings per share 23,984,536 22,376,650
Dilutive shares 213,581 1,097,927
Number of shares used for dilutive earnings per share 24,198,117 23,474,577
A reconciliation of the earnings used in the earnings per share calculation is
set out below:
2014 2013
£000 penceper share £000 pence per share
Basic earnings per share 5,399 22.5p 6,192 27.7p
Amortisation of acquired intangible assets (net of tax) 1,144 4.8p 650 2.9p
Goodwill impairment 1,538 6.4p - -
Gain on bargain purchase (1,039) (4.3p) - -
Acquisition costs (net of tax) - - 122 0.5p
Restructuring costs (net of tax) 1,467 6.2p 206 0.9p
Total adjustments net of income tax expense 3,110 13.1p 978 4.3p
Adjusted basic earnings per share 8,509 35.6p 7,170 32.0p
Basic diluted earnings per share 5,399 22.3p 6,192 26.4p
Adjusted diluted earnings per share 8,509 35.2p 7,170 30.5p
Basic and diluted earnings per share before amortisation and other adjustments
has been shown because, in the opinion of the Directors, it provides a useful
measure of the trading performance of the Group.
5. Dividends
2014 2013
£000 £000
Final 2013 dividend paid in 2014: 4.0p per share (Final 2012 dividend paid in 2013: 3.2p per share) 950 712
2014 Interim dividend paid: 2.6p per share (2013: 2.3p) 619 517
1,569 1,229
The Directors propose a final dividend of 4.6p per share making the total
dividend paid and proposed in respect of the 2014 financial year 7.2p (2013:
6.3p).
6. Cash generated from operating activities
2014£000 2013£000
Profit before income tax 7,881 8,343
Adjustments for:
- Amortisation of acquired intangible assets 1,525 875
- Amortisation of other intangible assets 164 168
- Gain on bargain purchase of Spanoptic Limited (1,039) -
- Impairment of goodwill 1,538 -
- Depreciation 2,644 1,949
- Loss on disposal of property, plant and equipment 21 91
- Share based payment obligations 361 341
- Finance income (8) (15)
- Finance costs 522 623
Total 5,728 4,032
Changes in working capital
- Inventories (538) (970)
- Trade and other receivables 2,097 (882)
- Trade and other payables 130 (393)
Total 1,689 (2,245)
Cash generated from operating activities 15,298 10,130
7. Post Balance Sheet Events
On 13 November 2014, the remaining E125,000 of deferred consideration in
respect of the acquisition of Constelex Technology Enablers Limited was
settled in the form of share capital.
On 14 November 2014, the Company refinanced its debt facilities with the Royal
Bank of Scotland. The Group now has a committed revolving credit facility of
$15m and an uncommitted flexible acquisition facility of $20m available until
30 April 2019. Upon inception of the new facility, all existing RBS
borrowings were repaid and $8m of the new revolving credit facility was
drawn.
This information is provided by RNS
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