REG - Headlam Group PLC - Interim Results <Origin Href="QuoteRef">HEAD.L</Origin> - Part 2
24/08/2016 07:06
- Part 2: For the preceding part double click ID:nRSX9545Ha
regulatory environment in which they operate. The group's internal management
structure and financial reporting systems differentiate the operating segments
on the basis of the differing economic characteristics in the UK and
Continental Europe and accordingly present these as two separate reportable
segments. This distinction is embedded in the construction of operating
reports reviewed by the Group Chief Executive, the board and the executive
management team and forms the basis for the presentation of operating segment
information given below.
UK Continental Europe Total
30 June2016£000 30 June2015£000 31 December2015£000 30 June2016£000 30 June2015£000 31 December2015£000 30 June2016£000 30 June2015£000 31December2015£000
Revenue
External revenues 286,260 274,587 575,341 42,413 38,959 78,737 328,673 313,546 654,078
Reportable segment operating profit 15,504 13,786 37,363 528 206 575 16,032 13,992 37,938
Reportable segment assets 255,194 247,961 257,984 34,333 30,720 34,067 289,527 278,681 292,051
Reportable segment liabilities (156,387) (154,039) (158,859) (16,342) (15,254) (13,326) (172,729) (169,293) (172,185)
During the periods shown above there have been no inter-segment revenues for
the reportable segments (2015: £nil).
Reconciliations of reportable segment profit, assets and liabilities and other
material items:
30 June2016£000 30 June2015£000 31 December2015£000
Profit for the period
Total profit for reportable segments 16,032 13,992 37,938
Unallocated expense (667) (970) (1,161)
Operating profit 15,365 13,022 36,777
Finance income 498 115 738
Finance expense (752) (789) (1,891)
Profit before taxation 15,111 12,348 35,624
Taxation (3,022) (2,500) (7,213)
Profit for the period 12,089 9,848 28,411
Notes to the Condensed Consolidated Interim Financial Statements continued
Unaudited
2 SEGMENT REPORTING - continued
30 June2016£000 30 June2015£000 31 December2015£000
Assets
Total assets for reportable segments 289,527 278,681 292,051
Unallocated assets:
Properties, plant and equipment 91,637 95,403 89,828
Deferred tax assets 1,981 2,509 2,238
Cash and cash equivalents 30,747 29,883 33,001
Derivative assets 52 - -
Total assets 413,944 406,476 417,118
Liabilities
Total liabilities for reportable segments (172,729) (169,293) (172,185)
Unallocated liabilities:
Employee benefits (17,436) (18,822) (19,014)
Other interest-bearing loans and borrowings (15,000) (22,681) (20,000)
Income tax payable (5,640) (5,514) (6,974)
Proposed dividend (12,368) (10,300) -
Derivative liabilities - (83) (516)
Total liabilities (223,173) (226,693) (218,689)
UK Continental Europe Reportable segmenttotal Unallocated Consolidated total
£000 £000 £000 £000 £000
Other material items 30 June 2016
Capital expenditure 991 412 1,403 53 1,456
Depreciation 1,108 276 1,384 1,005 2,389
Other material items 30 June 2015
Capital expenditure 1,142 309 1,451 317 1,768
Depreciation 1,147 261 1,408 1,014 2,422
Other material items 31 December 2015
Capital expenditure 2,064 543 2,607 287 2,894
Depreciation 2,246 538 2,784 2,020 4,804
Amortisation - - - 375 375
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 June2016£000 30 June2015£000 31 December2015£000 30 June2016£000 30 June2015£000 31 December2015£000 30 June2016£000 30 June2015£000 31 December2015£000
Revenue
Residential 200,610 189,972 399,453 20,777 19,345 40,281 221,387 209,317 439,734
Commercial 85,650 84,615 175,888 21,636 19,614 38,456 107,286 104,229 214,344
286,260 274,587 575,341 42,413 38,959 78,737 328,673 313,546 654,078
3 FINANCE INCOME AND EXPENSE
Six months ended 30 June2016£000 Six months ended 30 June2015£000 Year ended 31 December 2015£000
Interest income:
Bank interest 243 115 699
Other 255 - 39
Finance income 498 115 738
Interest expense:
Bank loans, overdrafts and other financial expenses (449) (356) (1,150)
Net change in fair value of cash flow hedges transferred from equity (23) (63) (125)
Net interest on defined benefit plan obligation (280) (310) (616)
Other - (60) -
Finance expenses (752) (789) (1,891)
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 2016 was 20% (for the six months
ended 30 June 2015: 20.25%; for the year ended 31 December 2015: 20.25%).
Reductions in the UK corporation tax rate from 20% to 19% (effective from 1
April 2017) and to 18% (effective 1 April 2020) were substantively enacted on
26 October 2015. A further reduction to 17% (effective from 1 April 2020) was
announced in the Budget on 16 March 2016. This will reduce the company's
future current tax charge accordingly. The deferred tax asset at 30 June 2016
has been calculated based on the rate of 18% 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 June2016£000 Six months ended 30 June2015£000 Year ended 31 December 2015£000
Earnings
Earnings for the purposes of basic and diluted earnings per share being profit attributable to equity holders of the parent 12,089 9,848 28,411
2016 2015 2015
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 (1,330,565) (1,501,893) (1,331,576)
Weighted average number of ordinary shares for the purposes of basic earnings per share 84,033,178 83,861,850 84,032,167
Effect of diluted potential ordinary shares:
Weighted average number of ordinary shares at period end 84,033,178 83,861,850 84,032,167
Dilutive effect of share options 617,808 402,528 282,078
Weighted average number of ordinary shares for the purposes of diluted earnings per share 84,650,986 84,264,378 84,314,245
Notes to the Condensed Consolidated Interim Financial Statements continued
Unaudited
6 DIVIDENDS
Six months ended30 June2016£000 Six months ended30 June 2015£000 Year ended31 December 2015£000
Interim dividend for 2015 of 6.0p paid 2 January 2016 5,048 - -
Special dividend for 2015 of 6.0p paid 25 April 2016 5,048 - -
Final dividend for 2015 of 14.7p proposed 12,368 - -
Interim dividend for 2014 of 5.2p paid 2 January 2015 - 4,355 4,355
Final dividend for 2014 of 12.3p proposed - 10,300 10,300
22,464 14,655 14,655
The final proposed dividend for 2015 of 14.7p per share was authorised by
shareholders at the Annual General Meeting on 20 May 2016 and paid on 1 July
2016. The final proposed dividend for 2014 of 12.3p per share was authorised
by shareholders at the Annual General Meeting on 21 May 2015 and paid on 1
July 2015.
7 CAPITAL COMMITMENTS
As at 30 June 2016, the group had contractual commitments relating to the
purchase of property, plant and equipment of £408,000 (30 June 2015: £371,000,
31 December 2015: £728,000).
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.
This information is provided by RNS
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