REG - Gooch & Housego PLC - Preliminary Results <Origin Href="QuoteRef">GHH.L</Origin> - Part 2
28/11/2017 07:05
- Part 2: For the preceding part double click ID:nRSb6461Xa
34,860 9,570 64,261 3,325 - 112,016
Divisional expenses (29,880) (8,165) (50,417) (2,821) (1,389) (92,672)
EBITDA¹ 4,980 1,405 13,844 504 (1,389) 19,344
EBITDA % 14.3% 14.7% 21.5% 15.2% - 17.3%
Depreciation and amortisation (715) (388) (2,000) (136) (625) (3,864)
Operating profit before amortisation of acquired intangible assets, goodwill impairment and release of contingent consideration 4,265 1,017 11,844 368 (2,014) 15,480
Amortisation of acquired intangible assets, goodwill impairment and release of contingent consideration - - - - (2,202) (2,202)
Operating profit 4,265 1,017 11,844 368 (4,216) 13,278
Operating profit margin % 12.2% 10.6% 18.4% 11.1% - 11.9%
Add back non-recurring items and amortisation of acquired intangibles, goodwill impairment and release of contingent consideration - - - - 3,128 3,128
Adjusted operating profit 4,265 1,017 11,844 368 (1,088) 16,406
Adjusted profit margin % 12.2% 10.6% 18.4% 11.1% - 14.6%
Finance costs - - - - (676) (676)
Profit before income tax expense 4,265 1,017 11,844 368 (4,892) 12,602
Aerospace & Defence Life Sciences Industrial Scientific Research Corporate Total
£000 £000 £000 £000 £000 £000
For year ended 30 September 2016
Revenue
Total revenue 19,977 7,904 59,875 3,874 - 91,630
Inter and intra-division - - (5,579) - - (5,579)
External revenue 19,977 7,904 54,296 3,874 - 86,051
Divisional expenses (18,055) (6,017) (42,719) (2,881) (1,342) (71,014)
EBITDA¹ 1,922 1,887 11,577 993 (1,342) 15,037
EBITDA % 9.6% 23.9% 21.3% 25.6% - 17.5%
Depreciation and amortisation (545) (335) (1,776) (310) (431) (3,397)
Operating profit before amortisation of acquired intangible assets 1,377 1,552 9,801 683 (1,773) 11,640
Amortisation of acquired intangible assets, gain on bargain purchase and goodwill impairment - - - - (1,456) (1,456)
Operating profit 1,377 1,552 9,801 683 (3,229) 10,184
Operating profit margin % 6.9% 19.6% 18.1% 17.6% - 11.8%
Add back amortisation of intangibles, impairment of goodwill, gain on bargain purchase and non-recurring items 108 53 960 37 2,916 4,074
Adjusted operating profit 1,485 1,605 10,761 720 (313) 14,258
Adjusted profit margin % 7.4% 20.3% 19.8% 18.6% - 16.6%
Finance costs - - - - (88) (88)
Profit before income tax expense 1,377 1,552 9,801 683 (3,317) 10,096
¹EBITDA = Earnings before interest, tax, depreciation and amortisation
Management have added back the amortisation of intangibles, gain on bargain
purchase, impairment of goodwill, restructuring costs, provision for export
compliance risk and transaction fees 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)
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 by location:
2017 2017 2017 2016 2016 2016
Assets Liabilities Net Assets Assets Liabilities Net Assets
£000 £000 £000 £000 £000 £000
United Kingdom 75,104 (32,612) 42,492 70,336 (30,580) 39,756
USA 73,641 (18,477) 55,164 59,077 (9,112) 49,965
Continental Europe 545 (98) 447 726 (318) 408
Asia Pacific 46 (13) 33 48 (5) 43
149,336 (51,200) 98,136 130,187 (40,015) 90,172
Analysis of revenue by destination:
2017£000 2016£000
United Kingdom 18,624 17,247
North America 45,485 34,918
Continental Europe 24,233 19,189
Asia Pacific and Other 23,674 14,697
Total revenue 112,016 86,051
3. Income tax expense
Analysis of tax charge in the year
2017 2016
£000 £000
Current taxation
UK Corporation tax 1,318 1,760
Overseas tax 2,165 887
Adjustments in respect of prior year tax charge (1,315) (77)
Total current tax 2,168 2,570
Deferred tax
Origination and reversal of temporary differences 227 218
Adjustments in respect of prior year deferred tax 1,315 290
Impact of change in the UK tax rate - (30)
Total deferred tax 1,542 478
Income tax expense per income statement 3,710 3,048
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:
2017 2016
Number of shares used for basic earnings per share 24,457,701 24,248,471
Dilutive shares 412,901 436,112
Number of shares used for dilutive earnings per share 24,870,602 24,684,583
A reconciliation of the earnings used in the earnings per share calculation is
set out below:
2017 2016
£000 penceper share £000 pence per share
Basic earnings per share 8,892 36.4p 7,048 29.1p
Amortisation of acquired intangible assets (net of tax) 2,034 8.3p 930 3.8p
Goodwill impairment 615 2.5p 771 3.2p
Release of accrued contingent consideration (615) (2.5p) - -
Gain on bargain purchase of Alfalight - - (578) (2.4p)
Provision for regulatory compliance - - 500 2.1p
Restructuring costs (net of tax) 431 1.8p 1,261 5.2p
Transaction fees (net of tax) 314 1.3p 373 1.5p
Interest on deferred consideration 381 1.6p - -
Total adjustments net of income tax expense 3,160 13.0p 3,257 13.4p
Adjusted basic earnings per share 12,052 49.4p 10,305 42.5p
Basic diluted earnings per share 8,892 35.8p 7,048 28.6p
Adjusted diluted earnings per share 12,052 48.5p 10,305 41.7p
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
2017 2016
£000 £000
Final 2016 dividend paid in 2017: 5.7p per share (Final 2015 dividend paid in 2016: 5.2p per share) 1,383 1,254
2017 Interim dividend paid: 3.7p per share (2016: 3.3p) 906 801
2,289 2,055
The Directors propose a final dividend of 6.5p per share making the total
dividend paid and proposed in respect of the 2017 financial year 10.2p (2016:
9.0p).
6. Cash generated from operating activities
Reconciliation of cash generated from operations
2017£000 2016£000
Profit before income tax 12,602 10,096
Adjustments for:
- Amortisation of acquired intangible assets 2,202 1,263
- Amortisation of other intangible assets 199 355
- Gain on bargain purchase of Alfalight - (578)
- Impairment of goodwill 615 771
- Release of accrued contingent consideration (615) -
- Depreciation 3,664 3,042
- Share based payment charge 587 638
- Amounts claimed under the RDEC (370) (270)
- Finance income (27) (39)
- Finance costs 703 127
Total 6,958 5,309
Changes in working capital
- Inventories (1,442) 223
- Trade and other receivables (1,465) (4,436)
- Trade and other payables 2,873 2,705
Total (34) (1,508)
Cash generated from operating activities 19,526 13,897
This information is provided by RNS
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