REG - Headlam Group PLC - Half Yearly Report <Origin Href="QuoteRef">HEAD.L</Origin> - Part 2
29/10/2014 16:07
- Part 2: For the preceding part double click ID:nRSc2920Qa
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 June2014£000 30 June2013£000 31 December2013£000 30 June2014£000 30 June2013£000 31 December2013£000 30 June2014£000 30 June2013£000 31 December2013£000
Revenue
Residential 178,268 160,567 350,020 19,917 20,816 47,608 198,185 181,383 397,628
Commercial 79,502 74,141 159,320 23,893 24,861 46,103 103,395 99,002 205,423
257,770 234,708 509,340 43,810 45,677 93,711 301,580 280,385 603,051
3 FINANCE INCOME AND EXPENSE
Six months ended 30 June2014£000 Six months ended 30 June2013£000 Year ended 31 December 2013£000
Interest income:
Bank interest 29 65 629
Other 97 31 -
Finance income 126 96 629
Interest expense:
Bank loans, overdrafts and other financial expenses (361) (392) (1,044)
Net change in fair value of cash flow hedges transferred from equity (67) (68) (137)
Interest on net defined benefit plan deficit (270) (298) (578)
Other - - (111)
Finance expenses (698) (758) (1,870)
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 2014 was 21.5% (for the six
months ended 30 June 2013: 23.25%; for the year ended 31 December 2013: 23.25%
based on results prior to including non-underlying items that relate to the
impairment of intangible and tangible fixed assets, totalling £5,352,000.).
The Budget 2013, issued on 20 March 2013, announced that the main rate of
corporation tax would be reduced to 21% from 1 April 2014 and to 20% with
effect from 1 April 2015. These future rate reductions were substantively
enacted on 2 July 2013 and have been appliedreducing the company's current tax
charge accordingly.
The deferred tax asset at 30 June 2014 has been calculated based on the rates
of 20% and 21% 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 June2014£000 Six months ended 30 June2013£000 Year ended 31 December 2013£000
Earnings
Earnings for the purposes of basic and diluted earnings per share being profit attributable to equity holders of the parent 8,446 6,966 14,941
2014 2013 2013
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 (2,328,375) (2,422,387) (2,383,937)
Weighted average number of ordinary shares for the purposes of basic earnings per share 83,035,368 82,941,356 82,979,806
Effect of diluted potential ordinary shares:
Weighted average number of ordinary shares at period end 83,035,368 82,941,356 82,979,806
Dilutive effect of share options 1,072,187 744,954 646,209
Weighted average number of ordinary shares for the purposes of diluted earnings per share 84,107,555 83,686,310 83,626,015
Notes to the Condensed Consolidated Interim Financial Statements continued
Unaudited
6 DIVIDENDS
Six months ended30 June2014£000 Six months ended30 June 2013£000 Year ended31 December 2013£000
Interim dividend for 2013 of 4.65p paid 2 January 2014 3,856 - -
Final dividend for 2013 of 10.65p proposed 8,833 - -
Interim dividend for 2012 of 4.65p paid 2 January 2013 - 3,850 3,850
Final dividend for 2012 of 10.20p proposed - 8,450 8,450
12,689 12,300 12,300
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. The final proposed dividend for 2012 of 10.20p per share was authorised
by shareholders at the Annual General Meeting on 24 May 2013 and paid on 1
July 2013.
7 CAPITAL COMMITMENTS
As at 30 June 2014, the group had contractual commitments relating to the
purchase of property, plant and equipment of £198,000 (30 June 2013:
£8,969,000, 31 December 2013: £2,261,000).
8 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.
9 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,
with the exception of the matter described below.
On 2 July 2014, the group completed the acquisition of the business and
certain assets of Kalm Investments Limited. Kalm Investments consisted of two
trading entities; RPS Flooring based in Mansfield and Mytton Flooring based in
Norwich. The combined annual sales revenue of the two businesses is
approximately £2.8 million. Consideration at completion amounted to £297,000
and a further £158,000 was paid following the verification of the fair value
of assets acquired.
At the end of July, the RPS Flooring business was transferred to and now
operates from our distribution facility in Nottingham, whilst retaining its
autonomous sales and marketing identity.
Mytton Flooring remains in Norwich and will now also provide an enhanced
logistics service for our businesses operating from Tamworth and Coleshill for
customers located in East Anglia.
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
Dick Peters
Chairman
29 August 2014
This information is provided by RNS
The company news service from the London Stock ExchangeRecent news on Headlam
See all newsREG - Headlam Group PLC - Total Voting Rights
AnnouncementREG - Headlam Group PLC - Employee Long Service Awards Scheme
AnnouncementREG - Headlam Group PLC - Director Declaration
AnnouncementREG - Headlam Group PLC - ARA & Notice of AGM
AnnouncementREG - Headlam Group PLC - Grant of awards under Deferred Bonus Plan & PSP
Announcement