- Part 3: For the preceding part double click ID:nRSS5699Nb
estimated amount
payable using the
relevant share
prices at the
balance sheet date.
The amount payable
will fluctuate in
line with the Impax
share price, such
fluctuations being
recorded in the
current period
income statement.
If and when the EBT
2004 Trustee agrees
to transfer assets
held in the EBT
2004 to
beneficiaries and
if the assets
transferred are in
the form of the
Group's Ordinary
Shares, the Group
also expects to be
eligible for a
corporation tax
deduction equal to
the value of those
Ordinary Shares.
The Group expects
this tax benefit
will be up to
£1,257,000 but has
not recognised this
to date.
EIA extension NIC
charge
The Group accrues
for the NIC payable
in respect of the
options and share
awards made under
the EIA Extension
over the same
period as the
related share-based
payment charge.
The amount payable
will fluctuate in
line with the Impax
share price, such
fluctuations being
recorded in the
current period
income statement.
The Group also
receives a
corporation tax
deduction on the
exercise of the
options equal to
the gain made on
these options. This
deduction has been
recognised as a
deferred tax asset
and its value will
also fluctuate in
line with the share
price with the
fluctuation being
recorded in the
current year tax
charge.
EIA additional
payments
Individuals
receiving Impax
Long-Term Incentive
Plan ("LTIP")
options are
eligible for a
retention payment
payable after the
end of the
financial year in
which each employee
exercises his or
her LTIP Options.
The payment will be
equal to the
corporation tax
benefit realised by
the Group on the
exercise of the
LTIP options minus
the amount of the
NIC suffered by the
Group on the
exercise of the
LTIP options.
The Group has
accrued for these
payments over the
same period as the
related share-based
payment charge.
The amount payable
will fluctuate in
line with the Impax
share price, such
fluctuations are
recorded in the
current period
income statement.
4 Fair value losses
Fair value losses
include those
arising on
revaluation of
listed and unlisted
investments held by
the Group including
those held by the
Group's
consolidated funds
(see Note 9) and
any gains or losses
arising on related
hedge instruments
held by the Group.
5 Change in third
party interest in
consolidated funds
This charge removes
the fair value
gains or losses,
other operating
costs and
investment income
recorded in the
Group's
consolidated funds
(see Note 10) which
are attributable to
third party
investors in the
funds.
6 Taxation
The tax assessment
for the period is
lower than the
standard rate of
corporation tax in
the UK for the
period (20.5%).
The differences are
explained below:
Six months ended 31 March 2015 Six months ended 31 March 2014 Year ended 30 September 2014
£'000 £'000 £'000
Profit before tax 1,941 1,377 3,535
Tax charge at 398 303 778
20.5%,22%,22%
Effects of:
Non-deductible 14 9 40
expenses and
charges
Increases in value (206) (322) (241)
of deductions re
share based
payments
Foreign exchange (137) 27 (247)
Tax effect of - (52) (61)
previously
unrecognised tax
losses
Adjustment in - - 8
respect of prior
years
Change in UK tax (9) (6) (16)
rates
Effect of higher 6 5 18
tax rates in
foreign
jurisdictions
Total income tax 66 (36) 279
expense/(credit)
7 Earnings and
earnings per share
Earnings and
Adjusted earnings
In order to better
reflect the
underlying economic
performance of the
Group, an adjusted
earnings has been
calculated. The
adjustment i)
excludes the IFRS 2
'Share based
payment' charge in
respect of schemes
where shares
awarded are
expected to be
satisfied by the
issue of new
shares, and ii)
includes the tax
benefit recognised
in Other
Comprehensive
Income in respect
of transfers out of
the EBT and the
exercising of LTIP
options.
Six months ended 31 March 2015 Six months ended 31 March 2014 Year ended 30 September 2014
£'000 £'000 £'000
Earnings 1,875 1,413 3,256
IFRS 2 Share-based - - -
payment charge
Tax benefit on long - - -
-term incentive
scheme included in
Other Comprehensive
Income
Adjusted earnings 1,875 1,413 3,256
The earnings per
share on an
adjusted and IFRS
basis are as shown
below.
Adjusted earnings
per share
Adjusted earnings for the period Shares Adjusted earnings per share
£'000 '000
Six months ended 31
March 2015
Basic adjusted 1,875 114,689 1.63p
Diluted adjusted 1,875 115,489 1.62p
Six months ended 31
March 2014
Basic adjusted 1,413 117,463 1.20p
Diluted adjusted 1,413 117,856 1.20p
Year ended 30
September 2014
Basic adjusted 3,256 116,199 2.80p
- More to follow, for following part double click ID:nRSS5699Nd