REG - Gooch & Housego PLC - Preliminary Results <Origin Href="QuoteRef">GHH.L</Origin> - Part 2

Gooch & HousegoAnnouncement

29/11/2016 07:06

- Part 2: For the preceding part double click  ID:nRSc3565Qa 

      (17,112)             (7,067)        (35,885)    (3,058)              (783)      (63,905)  
 EBITDA¹                                                             2,692                1,911          10,169      808                  (783)      14,797    
 EBITDA %                                                            13.6%                21.3%          22.1%       20.9%                -          18.8%     
 Depreciation and amortisation                                       (572)                (322)          (1,746)     (129)                (130)      (2,899)   
 Operating profit before amortisation of acquired intangible assets  2,120                1,589          8,423       679                  (913)      11,898    
 Amortisation of acquired intangible assets                          -                    -              -           -                    (1,604)    (1,604)   
 Operating profit                                                    2,120                1,589          8,423       679                  (2,517)    10,294    
 Operating profit margin %                                           10.7%                17.7%          18.3%       17.6%                -          13.1%     
 Add back restructuring costs                                        20                   23             1,156       5                    -          1,204     
 Operating profit excluding restructuring costs                      2,140                1,612          9,579       684                  (2,517)    11,498    
 Adjusted profit margin %                                            10.8%                18.0%          20.8%       17.7%                -          14.6%     
 Finance costs                                                       -                    -              -           -                    (188)      (188)     
 Profit before income tax expense                                    2,120                1,589          8,423       679                  (2,705)    10,106    
 
 
Management have added back the restructuring costs 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. 
 
All of the amounts recorded are in respect of continuing operations. 
 
Analysis of net assets / (liabilities) by location: 
 
                     2016     2016         2016        2015     2015         2015        
                     Assets   Liabilities  Net Assets  Assets   Liabilities  Net Assets  
                     £000     £000         £000        £000     £000         £000        
 United Kingdom      70,336   (30,580)     39,756      50,359   (12,999)     37,360      
 USA                 59,077   (9,112)      49,965      50,193   (9,679)      40,514      
 Continental Europe  726      (318)        408         872      (389)        483         
 Asia Pacific        48       (5)          43          15       (5)          10          
                     130,187  (40,015)     90,172      101,439  (23,072)     78,367      
 
 
2.         Segmental analysis (continued) 
 
Analysis of revenue by destination: 
 
                             2016£000  2015£000  
 United Kingdom              17,247    14,897    
 USA                         34,918    34,762    
 Continental Europe          19,189    16,890    
 Asia Pacific and Other      14,697    12,153    
 Total revenue               86,051    78,702    
 
 
3.             Income tax expense 
 
Analysis of tax charge in the year 
 
                                                      2016   2015   
                                                      £000   £000   
 Current taxation                                                   
 UK Corporation tax                                   1,760  1,480  
 Overseas tax                                         887    724    
 Adjustments in respect of prior year tax charge      (77)   (983)  
 Total current tax                                    2,570  1,221  
                                                                    
 Deferred tax                                                       
 Origination and reversal of temporary differences    218    274    
 Adjustments in respect of prior year deferred tax    290    1,152  
 Impact of change in the UK tax rate                  (30)   -      
 Total deferred tax                                   478    1,426  
                                                                    
 Income tax expense per income statement              3,048  2,647  
                                                                    
 
 
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: 
 
                                                        2016        2015        
 Number of shares used for basic earnings per share     24,248,471  24,115,878  
 Dilutive shares                                        436,112     405,311     
 Number of shares used for dilutive earnings per share  24,684,583  24,521,189  
 
 
A reconciliation of the earnings used in the earnings per share calculation is
set out below: 
 
                                                          2016    2015            
                                                          £000    penceper share  £000   pence per share  
 Basic earnings per share                                 7,048   29.1p           7,459  30.9p            
 Amortisation of acquired intangible assets (net of tax)  930     3.8p            1,184  4.9p             
 Goodwill impairment                                      771     3.2p            -      -                
 Gain on bargain purchase of Alfalight                    (578)   (2.4p)          -      -                
 Provision for regulatory compliance                      500     2.1p            -      -                
 Restructuring costs (net of tax)                         1,261   5.2p            891    3.7p             
 Transaction fees (net of tax)                            373     1.5p            -      -                
 Total adjustments net of income tax expense              3,257   13.4p           2,075  8.6p             
 Adjusted basic earnings per share                        10,305  42.5p           9,534  39.5p            
                                                                                                          
 Basic diluted earnings per share                         7,048   28.6p           7,459  30.4p            
 Adjusted diluted earnings per share                      10,305  41.7p           9,534  38.9p            
 
 
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 
 
                                                                                                        2016   2015   
                                                                                                        £000   £000   
 Final 2015 dividend paid in 2016: 5.2p per share (Final 2014 dividend paid in 2015: 4.6p per share)    1,254  1,101  
 2016 Interim dividend paid: 3.3p per share (2015: 3.0p)                                                801    722    
                                                                                                        2,055  1,823  
 
 
The Directors propose a final dividend of 5.7p per share making the total
dividend paid and proposed in respect of the 2016 financial year 9.0p (2015:
8.2p). 
 
6.             Cash generated from operating activities 
 
                                                        2016£000  2015£000  
 Profit before income tax                               10,096    10,106    
 Adjustments for:                                                           
 - Amortisation of acquired intangible assets           1,263     1,604     
 - Amortisation of other intangible assets              355       301       
 - Gain on bargain purchase of Alfalight                (578)     -         
 - Impairment of goodwill                               771       -         
 - Depreciation                                         3,042     2,715     
 - Loss on disposal of property, plant and equipment    -         508       
 - Share based payment charge                           638       485       
 - Finance income                                       (39)      (26)      
 - Finance costs                                        127       214       
 Total                                                  5,579     5,801     
 Changes in working capital                                                 
 - Inventories                                          223       (729)     
 - Trade and other receivables                          (4,706)   (1,101)   
 - Trade and other payables                             2,705     615       
 Total                                                  (1,778)   (1,215)   
                                                                            
 Cash generated from operating activities               13,897    14,692    
 
 
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