REG - Headlam Group PLC - Interim Results <Origin Href="QuoteRef">HEAD.L</Origin> - Part 2
24/08/2015 07:00
- Part 2: For the preceding part double click ID:nRSX8106Wa
Other material items 31 December 2014
Capital expenditure 2,586 421 3,007 2,661 5,668
Depreciation 2,260 567 2,827 1,998 4,825
Amortisation - - - 75 75
In the UK the group's freehold properties are held within Headlam Group plc
and a rent is charged to the operating segments for the period of use.
Therefore the operating reports reviewed by the Group Chief Executive show all
the UK properties as unallocated and the operating segments report a segment
result that includes a property rent. This is reflected in the above
disclosure.
Each segment is a continuing operation.
Notes to the Condensed Consolidated Interim Financial Statements continued
Unaudited
2 SEGMENT REPORTING - continued
The Group Chief Executive, the board and the senior executive management team
have access to information that provides details on revenue by principal
product group for the two reportable segments, as set out in the following
table:
UK Continental Europe Total
30 June2015£000 30 June2014£000 31 December2014£000 30 June2015£000 30 June2014£000 31 December2014£000 30 June2015£000 30 June2014£000 31 December2014£000
Revenue
Residential 189,972 178,268 378,910 19,345 19,917 43,415 209,317 198,185 422,325
Commercial 84,615 79,502 169,483 19,614 23,893 43,434 104,229 103,395 212,917
274,587 257,770 548,393 38,959 43,810 86,849 313,546 301,580 635,242
3 FINANCE INCOME AND EXPENSE
Six months ended 30 June2015£000 Six months ended 30 June2014£000 Year ended 31 December 2014£000
Interest income:
Bank interest 115 29 693
Other - 97 126
Finance income 115 126 819
Interest expense:
Bank loans, overdrafts and other financial expenses (356) (361) (1,323)
Net change in fair value of cash flow hedges transferred from equity (63) (67) (132)
Net interest on defined benefit plan obligation (310) (270) (526)
Other (60) - -
Finance expenses (789) (698) (1,981)
Notes to the Condensed Consolidated Interim Financial Statements continued
Unaudited
4 TAXATION
The group's consolidated effective tax rate in respect of continuing
operations for the six months ended 30 June 2015 was 20.25% (for the six
months ended 30 June 2014: 21.5%; for the year ended 31 December 2014:
21.5%).
Reductions in the UK corporation tax rate from 23% to 21% (effective from 1
April 2014) and 20% (effective from 1 April 2015) were substantively enacted
on 2 July 2013. In the Budget on 8 July 2015, the Chancellor announced
additional planned reductions to 18% by 2020. This will reduce the company's
future current tax charge accordingly. The deferred tax asset at 30 June 2015
has been calculated based on the rate of 20% substantively enacted at the
balance sheet date.
5 EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is based on the
following data:
Six months ended 30 June2015£000 Six months ended 30 June2014£000 Year ended 31 December 2014£000
Earnings
Earnings for the purposes of basic and diluted earnings per share being profit attributable to equity holders of the parent 9,848 8,446 23,785
2015 2014 2014
Number of shares
Issued ordinary shares at end of period 85,363,743 85,363,743 85,363,743
Effect of shares held in treasury (1,501,893) (2,328,375) (2,053,036)
Weighted average number of ordinary shares for the purposes of basic earnings per share 83,861,850 83,035,368 83,310,707
Effect of diluted potential ordinary shares:
Weighted average number of ordinary shares at period end 83,861,850 83,035,368 83,310,707
Dilutive effect of share options 402,528 1,072,187 264,178
Weighted average number of ordinary shares for the purposes of diluted earnings per share 84,264,378 84,107,555 83,574,885
Notes to the Condensed Consolidated Interim Financial Statements continued
Unaudited
6 DIVIDENDS
Six months ended30 June2015£000 Six months ended30 June 2014£000 Year ended31 December 2014£000
Interim dividend for 2014 of 5.20p paid 2 January 2015 4,355 - -
Final dividend for 2014 of 12.30p proposed 10,300 - -
Interim dividend for 2013 of 4.65p paid 2 January 2014 - 3,856 3,856
Final dividend for 2013 of 10.65p proposed - 8,833 8,833
14,655 12,689 12,689
The final proposed dividend for 2014 of 12.30p per share was authorised by
shareholders at the Annual General Meeting on 21 May 2015 and paid on 1 July
2015. The final proposed dividend for 2013 of 10.65p per share was authorised
by shareholders at the Annual General Meeting on 21 May 2014 and paid on 1
July 2014.
7 ACQUISITIONS
On 30 January 2015, a subsidiary company of Headlam Group plc entered into an
agreement to acquire the business and certain assets of Matty's Wholesale
Carpets (Matty's). Matty's is a distributor of residential floorcovering to
independent flooring retailers, principally in the Midlands. Revenue for the
calendar year 2014 was approximately £4.3 million. Consideration at completion
amounted to £1.978 million, with net assets acquired of £1.228 million and
goodwill of £0.75 million. Following completion, the autonomous sales and
marketing identity of Matty's has been preserved and logistics are being
provided by the group's existing facility in Coleshill. The disclosures
required by IFRS 3 will be shown in the Annual Report and Accounts for the
group for the year ended 31 December 2015.
8 CAPITAL COMMITMENTS
As at 30 June 2015, the group had contractual commitments relating to the
purchase of property, plant and equipment of £371,000 (30 June 2014: £198,000,
31 December 2014: £1,019,000).
9 RELATED PARTIES
The group has a related party relationship with its subsidiaries and with its
key management. There have been no changes to the nature of related party
transactions entered into since the last annual report.
10 SUBSEQUENT EVENTS
Management have given due consideration to any events occurring in the period
from the reporting date to the date these Interim Financial Statements were
authorised for issue and have concluded that there are no material adjusting
or non-adjusting events to be disclosed in these Interim Financial
Statements.
Statement of Directors' Responsibilities
We confirm to the best of our knowledge:
(a) the condensed set of financial statements has been prepared in
accordance with IAS 34 'Interim Financial Reporting' as adopted by the
European Union;
(b) the interim management report includes a fair review of the
information required by: (i) DTR 4.2.7R of the Disclosure and
Transparency Rules, being an indication of important events that have
occurred during the first six months of the financial year and their
impact on the condensed set of financial statements; and a description of
the principal risks and uncertainties for the remaining six months of the
year; and (ii) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six months
of the current financial year and that have materially affected the
financial position or performance of the entity during that period; and
any changes in the related party transactions described in the last
annual report that could do so.
This report has been approved by the board of directors and signed on its
behalf by
Tony Brewer
Chief Executive Officer
24 August 2015
This information is provided by RNS
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