Half-year Report

Jaywing

20/12/2019 07:00

RNS Number : 5661X

Jaywing PLC

20 December 2019

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

Date:               19 December 2019

On behalf of:   Jaywing plc ("Jaywing", "the Company" or "the Group")

Embargoed:    0700 hrs on 20 December 2019

 

Jaywing plc

Interim Results 2019/2020

&

Directorate Change

 

Jaywing plc (AIM: JWNG) today announces its interim results for the six months ended

30 September 2019 ("H1").

 

Financial highlights from continuing operations

 

6 months to 30 September 2019
£'000
6 months to 30 September 2018
£'000
Gross profit*
11,996
14,979
Adjusted EBITDA**
(551)
1,327
Adjusted EBITDA margin***
(4.6%)
8.9%
Loss after tax
(1,215)
(634)
Reported EPS
(1.38p)
(0.70p)
Net debt
5,748
7,132

 

* Revenue less direct costs of sale

** Before amortisation, share based charges, exceptional items, acquisition related costs and adjustment for the impact of IFRS 16

*** As a percentage of gross profit

 

Commenting on the results, Martin Boddy, Chairman of Jaywing plc, said:

 

"As we have outlined in previous announcements, trading in the UK in the first quarter of the year was very weak with a modest improvement in the second quarter. With the political and economic uncertainty in the period, many clients have been focused on their short term marketing spend and where this spend is discretionary, it has been running at a level well below that seen in previous years. However, trading in our Australia operation continued to show profitable growth with EBITDA increasing by 40%.

 

Overall, like for like Gross Profit for the half year fell by 20% to £12m but the impact on EBITDA was mitigated through cost management and efficiencies resulting in a like for like EBITDA loss of £551k. Despite this, we have generated a small positive cashflow from operations. Net debt reduced year on year following the sale of HSM Limited in January 2019 and loan repayments.

 

On 2 October 2019, following the half year period, we announced that entities associated with two of our major shareholders had acquired the Company's existing secured loan facility of £5.2 million owed to Barclays Bank plc. The major shareholders immediately provided the Company with additional secured facilities by increasing the Jaywing Facility by £3.0 million to £8.2 million, which enabled the Company to repay its outstanding overdraft and provided it with additional working capital.

 

By successfully tackling the Group's funding challenge Jaywing is now in a financially stronger position.

 

During September we developed a plan with the objective of returning our UK operations to profitability and cash generation in the short term, which assumed no improvement in trading conditions. Taking expert input we concluded that we needed to take a different approach and the plan sets out how we will reshape and re-engineer the organisation to address the changes that we are seeing in the way clients engage with agencies and the new demands that they are making of them. Since September management has been focused on executing the plan and I am pleased to say that we are making good progress. We have improved the management of our working capital, materially realigned our cost base and adopted a new and contemporary agency model that drives revenue and creates efficiencies in delivering even higher quality and effective work for clients. All of this is now being reflected in a stronger financial run rate.

 

The composition of the Board has also been reviewed and by mutual agreement. Adrian Lingard, Chief Operating Officer, is stepping down from the Board with immediate effect. On behalf of the Board I would like to thank him for his contribution over the past four years.

 

Beyond the short term, the Board is considering a range of strategic options to return the Company to highly accretive revenue growth. With its performance marketing proposition and pedigree in data science, Jaywing has some highly attractive capabilities that differentiate it from its competition and position it in areas of marketing spend that are set to grow."

 

 

Enquiries:

Jaywing plc
Michael Sprot (CFO / Company Secretary)
Tel: 0114 281 1200
Cenkos Securities plc
Nicholas Wells/Callum Davidson
Tel: 020 7397 8900

 

 

Consolidated interim statement of comprehensive income (unaudited)

 

Unaudited
Six months ended
30 Sept 2019
Unaudited
Six months ended
30 Sept 2018
Audited year
ended
31 March 2019
Note
£'000
£'000
£'000
Revenue
5
13,815
18,731
35,554
Direct costs
(1,819)
(3,752)
(5,709)
Gross profit
11,996
14,979
29,845
Other operating income
20
-
13
Amortisation
(777)
(886)
(1,795)
Operating expenses
(12,619)
(14,503)
(28,872)
Operating loss
(1,380)
(410)
(809)
Finance income
1
2
4
Finance costs
(157)
(159)
(305)
Net financing costs
(156)
(157)
(301)
Loss before tax from continuing operations
(1,536)
(567)
(1,110)
Tax credit
6
321
109
175
Loss after tax from continuing operations
(1,215)
(458)
(935)
Loss from discontinued operations
-
(176)
(1,610)
Loss for the period
(1,215)
(634)
(2,545)
Loss for the period is attributable to:
Non-controlling interests
74
24
140
Owners of the parent
(1,289)
(658)
(2,685)
(1,215)
(634)
(2,545)
Other comprehensive income
Items that will be reclassified subsequently to profit or loss
Exchange differences on retranslation of foreign operations
(13)
(5)
20
Total comprehensive loss for the period
(1,228)
(639)
(2,525)
Total comprehensive income is attributable to:
Non-controlling interests
74
24
140
Owners of the parent
(1,302)
(663)
(2,665)
(1,228)
(639)
(2,525)
Loss per share
7
Basic loss per share from continuing operations
(1.38p)
(0.52p)
(1.15p)
Basic loss per share from discontinued operations
-
(0.18p)
(1.72p)
Total
(1.38p)
(0.70p)
(2.87p)
Diluted loss per share from continuing operations
(1.38p)
(0.52p)
(1.15p)
Diluted loss per share from discontinued operations
-
(0.18p)
(1.72p)
Total
(1.38p)
(0.70p)
(2.87p)

 

 

Consolidated interim balance sheet (unaudited)

Unaudited
30 Sept 2019
Unaudited
30 Sept 2018
Audited
31 March 2019
Note
£'000
£'000
£'000
Assets
Non-current assets
Property, plant and equipment
3,330
1,342
1,015
Goodwill
33,054
34,674
33,054
Other intangible assets
3,650
5,106
4,364
40,034
41,122
38,433
Current assets
Trade and other receivables
6,522
13,071
8,256
Tax receivable
285
-
-
Cash and cash equivalents
1
2
690
6,808
13,073
8,946
Total assets
46,842
54,195
47,379
Liabilities
Current liabilities
Bank overdraft
8
(549)
(884)
-
Other interest bearing loans and borrowings
8
(1,800)
(1,500)
(1,800)
Trade and other payables
(8,832)
(12,412)
(9,546)
Tax payable
-
(397)
(205)
Provisions
(42)
(151)
(42)
(11,223)
(15,344)
(11,593)
Non-current liabilities
Other interest bearing loans and borrowings
8
(3,400)
(4,750)
(3,850)
Lease liability
(1,770)
-
-
Deferred tax liabilities
(552)
(809)
(656)
(5,722)
(5,559)
(4,506)
Total liabilities
(16,945)
(20,903)
(16,099)
Net assets
29,897
33,292
31,280
Equity
Capital and reserves attributable to equity holders of the company
Share capital
34,992
34,992
34,992
Share premium account
10,088
10,088
10,088
Capital redemption reserve
125
125
125
Shares purchased for treasury
(25)
(25)
(25)
Share option reserve
683
826
838
Foreign currency translation reserve
(13)
(25)
-
Retained earnings
(17,178)
(14,431)
(15,889)
Equity attributable to owners of the parent
28,672
31,550
30,129
Non-controlling interest
1,225
1,742
1,151
Total equity
29,897
33,292
31,280

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interim cash flow statement (unaudited)

Unaudited
Six months ended
30 Sept 2019
Unaudited
Six months ended
30 Sept 2018
Audited year
ended
31 March 2019
Note
£'000
£'000
£'000
Cash flow from operating activities
Loss for the period
(1,215)
(634)
(2,545)
Adjustment for:
Depreciation, amortisation and impairment
1,297
1,234
3,440
Loss on sale of HSM Limited
-
-
1,370
Foreign exchange
(15)
(5)
-
Finance income
(1)
(2)
(4)
Finance costs
157
159
305
Share based payment charge
(155)
152
177
Taxation
(321)
(109)
(175)
Operating cash flow before changes in working capital
(253)
795
2,568
Decrease / (increase) in trade and other receivables
1,736
(1,124)
1,599
(Decrease) / increase in trade and other payables
(1,475)
216
(1,745)
Cash (used in)/generated from operations
8
(113)
2,422
Interest received
1
2
4
Interest paid
(103)
(154)
(305)
Tax paid
(273)
-
(287)
Net cash flow from operating activities
(367)
(265)
1,834
Cash flows from investing activities
Payment of deferred consideration
(325)
(672)
(592)
Proceeds from sale of HSM Limited
-
-
403
Acquisition of intangible assets
(63)
(94)
(297)
Acquisition of property, plant and equipment
(33)
(183)
(252)
Net cash outflow from investing activities
(421)
(949)
(738)
Cash flows from financing activities
Repayment of borrowings
(450)
(300)
(900)
Acquisition of non-controlling interest
-
-
(138)
Net cash outflow from financing activities
(450)
(300)
(1,038)
Net (decrease) / increase in cash, cash equivalents and bank overdrafts
(1,238)
(1,514)
58
Cash and cash equivalents at beginning of period
690
632
632
Cash and cash equivalents at end of period
(548)
(882)
690
Cash and cash equivalents comprise:
Cash at bank and in hand
1
2
690
Bank overdrafts
7
(549)
(884)
-
Cash and cash equivalents at end of period
(548)
(882)
690


 

 

Consolidated interim statement of changes in equity (unaudited)

 

 

 

Share capital
Share premium account
Capital redemption reserve
Treasury Shares
Share option reserve
Foreign currency translation reserve
Retained earnings
Equity attributable to parent
Non-controlling interest
Total equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 31 March 2018
34,992
10,088
125
(25)
736
(20)
(13,773)
32,123
1,718
33,841
Charge in respect of share-based payments
-
-
-
-
90
-
-
90
-
90
Transactions with owners
-
-
-
-
90
-
-
90
-
90
Profit/(loss) for the period
-
-
-
-
-
-
(658)
(658)
24
(634)
Retranslation of foreign currency
-
-
-
-
-
(5)
-
(5)
-
(5)
Total comprehensive income for the period
-
-
-
-
-
(5)
(658)
(663)
24
(639)
Balance at 30 September 2018
34,992
10,088
125
(25)
826
(25)
(14,431)
31,550
1,742
33,292
Acquisition of non-controlling interests
-
-
-
-
-
-
569
569
(707)
(138)
Charge in respect of share-based payments
-
-
-
-
12
-
-
12
-
12
Transactions with owners
-
-
-
-
12
-
569
581
(707)
(126)
Profit/(loss) for the period
-
-
-
-
-
-
(2,027)
(2,027)
116
(1,911)
Retranslation of foreign currency
-
-
-
-
-
25
-
25
-
25
Total comprehensive income for the period
-
-
-
-
-
25
(2,027)
(2,002)
116
(1,886)
Balance at 31 March 2019 (audited)
34,992
10,088
125
(25)
838
-
(15,889)
30,129
1,151
31,280
Charge in respect of share-based payments
-
-
-
-
(155)
-
-
(155)
-
(155)
Transactions with owners
-
-
-
-
(155)
-
-
(155)
-
(155)
Profit/(loss) for the period
-
-
-
-
-
-
(1,289)
(1,289)
74
(1,215)
Retranslation of foreign currency
-
-
-
-
-
(13)
-
(13)
-
(13)
Total comprehensive income for the period
-
-
-
-
-
(13)
(1,289)
(1,302)
74
(1,228)
Balance at 30 September 2019
34,992
10,088
125
(25)
683
(13)
(17,178)
28,672
1,225
29,897


 

 

 

 

 

 

 

 

 

 

1.     General Information

 

Jaywing plc (the "Company") is incorporated and domiciled in the United Kingdom. The Company is listed on the AIM market of the London Stock Exchange. The registered address is Albert Works, Sidney Street, Sheffield,

S1 4RG.

 

The interim financial information was approved for issue on 19 December 2019.

 

2.     Basis of preparation

 

The consolidated interim financial statements for the six months ended 30 September 2019, which are unaudited, have been prepared in accordance with applicable accounting standards and under the historical cost convention except for certain financial instruments that are carried at fair value.

 

The financial information for the year ended 31 March 2019 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The Group's statutory financial statements for the year ended 31 March 2019 have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain statements under Section 498 (2) or Section 498 (3) of the Companies Act 2006.

 

The consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2019, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

 

3.     Accounting policies

 

Except as described below, the principal accounting policies of Jaywing plc and its subsidiaries ("the Group") are consistent with those set out in the Group's 2019 annual report and financial statements.

 

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

 

The Group has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2019 annual financial statements, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 April 2019 and will be adopted in the 2020 financial statements. The only standard impacting the Group that will be adopted in the annual financial statements for the year ended 31 March 2020, and which have given rise to a change in the Group's accounting policies is:

 

• IFRS 16 leases

 

Details of the impact of this standard is given below. Other new and amended standards and interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to have a material impact on the Group.

 

4.     New IFRS implementation

 

The Company has adopted IFRS 16 - Leases for the financial year ending 31 March 2020, and it has chosen to use the modified retrospective approach to adoption which means there are no restatements to the prior year figures.

 

IFRS 16 introduces a single lessee accounting model, whereby the Group now recognises a lease liability and a right of use asset at 1 April 2019 for leases previously classified as operating leases. Within the income statement, operating lease charges, which previously were included in administrative expenses, have been replaced by depreciation and interest expenses.

 

The adoption of IFRS 16 resulted in a right of use asset of £2.8 million, with a corresponding liability of £2.8 million, being recognised as at 1 April 2019 which was depreciated to a value of £2.5 million as at 30 September 2019.

 

In order to see how the impact of IFRS 16 has affected Adjusted EBITDA*, a reconciliation is presented below:

 

6 months ended 30 September 2019
£'000
6 months ended 30 September 2018
£'000
Adjusted EBITDA* - consistent with 2018 presentation and accounting policy
(551)
1,327
Changes due to new accounting policy - IFRS 16
425
-
Adjusted EBITDA* - consistent with 2019 presentation and accounting policy
(126)
1,327

 

* Before amortisation, share based charges, exceptional items and acquisition related costs

 

 

 

 

 

The Group has adopted IFRS 16 on a modified retrospective basis. Upon transition, a lease liability has been recognised based on future lease payments discounted at an appropriate borrowing rate. Additionally, a right

of use asset has been recognised along with a related lease liability. Within the income statement, the operating lease charge (£370k) has been replaced by depreciation (£333k) and interest expense (£54k). This has resulted in a decrease in operating expenses and an increase in finance costs.

 

6 months ended 30 September 2019
£'000
6 months ended 30 September 2018
£'000
Non-current assets
Property, plant and equipment - consistent with 2018 presentation and accounting policy
861
1,342
Changes due to new accounting policy - IFRS 16 - Right of use asset
2,469
-
Property, plant and equipment - consistent with 2019 presentation and accounting policy
3,330
1,342
Current liabilities
Current liabilities - consistent with 2018 presentation and accounting policy
10,562
15,344
Changes due to new accounting policy - IFRS 16 - Short term leases
661
-
Current liabilities - consistent with 2019 presentation and accounting policy
11,223
15,344
Non-current liabilities
Non-current liabilities - consistent with 2018 presentation and accounting policy
3,952
5,559
Changes due to new accounting policy - IFRS 16 - Long term leases
1,770
-
Non-current liabilities - consistent with 2019 presentation and accounting policy
5,722
5,559

 

 

5.     Segment information (unaudited)

 

Jaywing reports its business activities in three areas: Brand Performance, Online Performance and Data, Analysis & Technology. Central Costs represents the Group's head office function, along with intragroup transactions. The 2018 results have been restated into the new segments.

 

 

Six months ended 30 September 2019
Brand
Performance
Online
Performance
Data Analysis & Technology
Central
Costs
Total Group
£'000
£'000
£'000
£'000
£'000
Revenue
4,822
7,509
3,390
(1,906)
13,815
Direct costs
(1,282)
(2,010)
(433)
1,906
(1,819)
Gross profit
3,540
5,499
2,957
-
11,996
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments
(3,702)
(4,488)
(2,809)
(1,123)
(12,122)
Operating profit / (loss) before depreciation, amortisation, exceptional items, acquisition related costs and credit for share based payments
(162)
1,011
148
(1,123)
(126)
Other Operating Income
20
-
-
-
20
Depreciation
(88)
(298)
(13)
(121)
(520)
Amortisation
(359)
(369)
(49)
-
(777)
Exceptional costs
(46)
(146)
(10)
(267)
(469)
Acquisition related costs
-
-
-
(293)
(293)
Charge for share based payments
-
-
-
785
785
Operating profit / (loss)
(635)
198
76
(1,019)
(1,380)
Finance costs
(156)
Loss before tax
(1,536)
Tax credit
321
Loss for the period
(1,215)

 

Six months ended 30 September 2018 - continuing operations
Brand
Performance
Online
Performance
Data Analysis & Technology
Central
Costs
Total Group
£'000
£'000
£'000
£'000
£'000
Revenue
6,070
6,546
7,052
(937)
18,731
Direct costs
(1,340)
(333)
(3,016)
937
(3,752)
Gross profit
4,730
6,213
4,036
-
14,979
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments
(4,262)
(4,840)
(3,341)
(1,209)
(13,652)
Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments
468
1,373
695
(1,209)
1,327
Depreciation
(48)
(109)
(19)
(43)
(219)
Amortisation
(488)
(360)
(38)
-
(886)
Other exceptional costs
(6)
(36)
(19)
(224)
(285)
Acquisition related costs
-
-
-
(147)
(147)
Charge for share based payments
-
-
-
(200)
(200)
Operating profit / (loss)
(74)
868
619
(1,823)
(410)
Finance costs
(157)
Loss before tax
(567)
Tax credit
109
Loss for the period
(458)

 

 

5.   Segment information (unaudited) (continued)

 

Year ended 31 March 2019 (audited) - continuing operations

 

Brand
Performance
Online
Performance
Data Analysis & Technology
Central
Costs
Total Group
£'000
£'000
£'000
£'000
£'000
Revenue
11,685
13,289
12,446
(1,866)
35,554
Direct costs
(2,504)
(609)
(4,502)
1,906
(5,709)
Gross profit
9,181
12,680
7,944
40
29,845
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments
(8,224)
(9,931)
(6,225)
(2,136)
(26,516)
Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments
957
2,749
1,719
(2,096)
3,329
Other operating income
13
-
-
-
13
Impairment to value of goodwill
(1,050)
-
-
-
(1,050)
Depreciation
(89)
(203)
(36)
(84)
(412)
Amortisation
(897)
(811)
(87)
-
(1,795)
Exceptional costs
(27)
(108)
(214)
(779)
(1,128)
Acquisition related costs
(66)
(100)
-
577
411
Charges for share based payments
(14)
(19)
(27)
(117)
(177)
Operating (loss)/profit
(1,173)
1,508
1,355
(2,499)
(809)
Finance income
4
Finance costs
(305)
Loss before tax
(1,110)
Tax credit
175
(935)


 

 

The September 2018 segmental analysis has been restated to reallocate some costs between direct costs and operating expenses.

 

Capital employed
Brand
Performance
Online
Performance
Data Analysis & Technology
Central
Costs
Discontinued
Operations
Total Group
£'000
£'000
£'000
£'000
£'000
£'000
30 September 2019
17,960
13,107
9,490
(10,660)
-
29,897
31 March 2019
19,267
13,742
10,175
(11,904)
-
31,280
30 September 2018
21,741
12,963
12,469
(15,044)
1,163
33,292


 

6.     Tax credit (unaudited)

 

A reconciliation of the charge that would result from applying the standard UK corporation tax rate to profit before tax to the tax credit is given below.

 

Six months ended
30 Sept 2019
Six months ended
30 Sept 2018
Audited year
ended
31 March 2019
£'000
£'000
£'000
Recognised in the consolidated statement of comprehensive income:
Current year tax
215
(33)
(91)
Origination and reversal of temporary differences
106
142
266
Total tax credit
321
109
175
Loss before tax
(1,536)
(567)
(1,110)
Tax charge thereon at UK corporation tax rate of 19% (2018: 19%)
292
108
211
Effects of:
Non-deductible expenses
29
1
(36)
Total tax credit
321
109
175

 

 

7.     Loss per share (unaudited)

 

Six months ended
30 Sept 2019
Six months ended
30 Sept 2018
Audited year
ended
31 March 2019
Pence per share
Pence per share
Pence per
Share
Basic loss per share from continuing operations
(1.38p)
(0.52p)
(1.15p)
Basic loss per share from discontinued operations
-
(0.18p)
(1.72p)
Basic loss per share
(1.38p)
(0.70p)
(2.87p)
Diluted loss per share from continuing operations
(1.38p)
(0.52p)
(1.15p)
Diluted loss per share from discontinued operations
-
(0.18p)
(1.72p)
Diluted loss per share
(1.38p)
(0.70p)
(2.87p)

 

Loss per share has been calculated by dividing the loss attributable to shareholders by the weighted average number of ordinary shares in issue during the period. The calculations of basic and diluted loss per share are:

 

Six months ended
30 Sept 2019
Six months ended
30 Sept 2018
Audited year
ended
31 March 2019
£'000
£'000
£'000
Loss for the period attributable to shareholders from continuing operations
(1,289)
(482)
(1,075)
Loss for the period attributable to shareholders from discontinued operations
-
(176)
(1,610)
Total loss for the period attributable to shareholders
(1,289)
(658)
(2,685)
Weighted average number of ordinary shares in issue:
Number '000
Number '000
Number '000
Basic
93,432
93,432
93,432
Adjustment for share options, warrants and contingent shares
3,688
1,481
1,707
Diluted
97,120
94,913
95,139
Adjusted earnings per share
Six months ended
30 Sept 2019
Six months ended
30 Sept 2018
Audited year
ended
31 March 2019
Pence per share
Pence per share
Pence per
share
Basic adjusted earnings per share
(1.11p)
0.56p
1.39p
Diluted adjusted earnings per share
(1.11p)
0.55p
1.36p


 

Adjusted earnings per share have been calculated by dividing the profit attributable to shareholders before other income, amortisation, impairment, charges for share based payments and the current period tax charge by the weighted average number of ordinary shares in issue during the period. The numbers used in calculating the basic and diluted adjusted earnings per share are reconciled below:

Six months ended
30 Sept 2019
Six months ended
30 Sept 2018
Audited year
ended
31 March 2019
£'000
£'000
£'000
Loss before tax from continuing operations
(1,536)
(743)
(2,685)
Amortisation
777
950
1,885
Impairment to the carrying value of goodwill
-
-
1,050
Loss on sale of HSM Limited
-
-
1,370
Acquisition related costs
293
147
(411)
Charge for share based payments
(785)
200
177
Adjusted profit attributable to shareholders
(1,251)
554
1,386
Current period tax charge
215
(33)
(91)
(1,036)
521
1,295


8.     Bank overdraft, borrowings and loans (unaudited)

30 Sept 2019
30 Sept 2018
Audited
31 March 2019
Summary
£'000
£'000
£'000
Bank overdraft
549
884
-
Borrowings, undiscounted cash flows
5,200
6,250
5,650
5,749
7,134
5,650
Borrowings are repayable as follows:
Within 1 year
Bank overdraft
549
884
-
Borrowings
1,800
1,500
1,800
Total due within 1 year
2,349
2,384
1,800
In more than one year but less than two years
3,400
1,800
3,850
In more than two years but less than three years
-
1,800
-
In more than three years but less than four years
-
1,150
-
Total amount due
5,749
7,134
5,650
Average interest rates at the balance sheet date were:
%
%
%
Overdraft
2.00
2.00
-
Term loan
4.05
4.00
4.10
Revolving credit facility
N/A
-
N/A

 

As the loans are at variable market rates their carrying amount is equivalent to their fair value.

 

The borrowing facilities available to the Group at 30 September 2019 were £1.5 million (2018: £1.1 million) and, taking into account cash balances within the Group, there was £1.5 million (2018: £1.1 million) of available borrowing facilities.

 

A composite accounting system is set up with the Group's bankers, which allows debit balances on overdraft to be offset across the Group with credit balances.

 

Reconciliation of net debt
Cash at bank and in hand
Overdraft
Borrowings
Net debt
£'000
£'000
£'000
£'000
30 September 2019
1
(549)
(5,200)
(5,748)
31 March 2019
690
-
(5,650)
(4,960)
30 September 2018
2
(884)
(6,250)
(7,132)

 

 

9.     Provisions (unaudited)

 

30 Sept 2019
30 Sept 2018
Audited
31 March 2019
£'000
£'000
£'000
At the beginning of the period
42
151
151
Disposal of HSM Limited
-
-
(109)
At the end of the period
42
151
42


Provisions relate to leases in the Group where the commercial benefit has either ceased or will cease before the normal expiry period.

 

10.   Share capital (unaudited)

 

Authorised:

45p deferred shares
5p ordinary shares
£'000
£'000
Authorised share capital at 31 March 2019 and 30 September 2019
45,000
10,000


 

Allotted, issued and fully paid

 

45p deferred shares
5p ordinary shares
Number
Number
£'000
Issued share capital at 31 March 2019 and 30 September 2019
67,378,520
93,432,217
34,992


 

11.   Related party transactions (unaudited)

 

There were no significant changes in the nature and size of related party transactions for the period from those disclosed in the Annual Report for the year ended 31 March 2019.

 

12.   Post balance sheet event

 

On 2 October 2019, Jaywing plc announced that entities associated with two of the major shareholders had acquired the Company's existing secured loan facility of £5.2m owed to Barclays Bank plc.  The major shareholders immediately provided the Company with additional secured facilities by increasing the Jaywing facility by £3.0m to £8.2m, which enabled the Company to repay its outstanding overdraft and provided it with additional working capital.

 

 

 

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END

 

 

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