REG - Jaywing PLC - Half-year Report

JaywingAnnouncement

20/11/2018 07:05

RNS Number : 8327H
Jaywing PLC
20 November 2018
 


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 November 2018
On behalf of:   Jaywing plc ("Jaywing", "the Company" or "the Group")
Embargoed:    0700 hrs 20 November 2018
 
Jaywing plc
Interim Results 2018/2019
 
Jaywing plc (AIM: JWNG) today announces its interim results for the six months ended

30 September 2018 ("H1").
 
Financial highlights from continuing operations
 




 


6 months to 30 September 2018
£'000


6 months to 30 September 2017
£'000




Gross profit*


18,158


17,932




Adjusted EBITDA**


1,331


1,454




Adjusted EBITDA margin***


7.3%


8.0%




Loss after tax


(634)


(376)




Reported EPS


(0.68)p


(0.44)p




Net debt


7,132


8,083




 
* Revenue less direct costs of sale
** Before amortisation, share based charges, exceptional items and acquisition related costs
*** As a percentage of gross profit
 
Commenting on the results, Martin Boddy, Chairman of Jaywing plc, said:
 
"I am pleased to report solid progress in H1 18/19.


We have seen growth in gross profit year on year, building sales momentum and recognising early stage benefits of cost realignment and debt reduction year on year. The disposal of our contact centre (HSM Limited), as announced by the Company this morning, is an important non-core asset disposal, which will allow management to concentrate entirely on developing its core business and will simplify the Jaywing offering.
 
Following the disposal, we will operate as a consultancy, an agency and a technology business all under-pinned by data science. Our skill is to combine these to create solutions that our clients find indispensable.  We call this our "One Jaywing" model, a model which is now being utilised with over two thirds of our top 50 clients.  Our approach was recognised once again when Jaywing was awarded best large integrated agency in the Prolific North Awards for the second consecutive year in May 2018. It was also validated by major new business wins for SugarCRM and Hermes as well as growth in existing clients including Firstdirect.
 
We are seeing momentum build quarter on quarter this year, particularly in our performance marketing division, Epiphany.  The sales pipeline is also far stronger than at the same time last year and our churn rate is far lower. Our overall EBITDA margin, 7.3% H1 18/19, reflects the specific business mix in H1, and also does not yet capture the benefits of the cost base measures we have undertaken.  
 
The end of September represents the seasonal peak of our borrowing. However, net debt has reduced year on year. We successfully renegotiated our banking facilities in July and are comfortably within our covenants.
 
Jaywing has demonstrable value in its data science, digital marketing and marketing technology assets, and operates in market segments with significant growth potential. The disposal transaction of HSM Limited has multiple additional benefits: it strengthens our balance sheet; provides a sizeable and ongoing revenue stream; removes a lease obligation and provides better potential for significant improvement in margins.
 
Looking ahead to the remainder of H2, we don't anticipate market conditions improving in the UK given the general level of uncertainty in the run up to the UK's anticipated withdrawal from the European Union on 29 March 2019.  Fiscal Q4 (calendar Q1) has historically been a seasonally important period for the Company, due to the annual budgeting cycles of our clients, which are not expected to change.  Despite the market conditions, the Board believes that Jaywing's differentiated offering makes it well placed to capitalise on growth opportunities in both the UK and Australia."
 
 
 
 
Enquiries:




Jaywing plc




Michael Sprot (CFO / Company Secretary)


Tel: 0114 281 1200




Cenkos Securities plc




Nicholas Wells/Callum Davidson


Tel: 020 7397 8900




 
CHIEF EXECUTIVE COMMENTARY
 
 
In the Media & Analysis segment, our performance marketing division, Epiphany has had an excellent H1 after a difficult 2017/18.  Gross profit has recovered to a similar level to the equivalent period last year whilst EBITDA is 20% higher showing the impact of our cost realignment.
 
Our data science consultancy has seen comparative H1 EBITDA performance down by £0.6m year on year, which reflects the scaling down of a relatively large and high margin financial services project. The focus here has been and continues to be on securing new business, alongside some cost realignment in what is an increasingly valuable industry segment, where there is a scarcity of talented resource.
 
Our Australian operation has continued to grow strongly year on year with gross profit up 45% and EBITDA up 126% on a purely organic basis. This excludes the acquisition of Frank Digital, which was only acquired in February and is growing well and integrating its services with that of our wider operations in Australia, replicating the "One Jaywing" model. 
 
We continue to invest in Jaywing Intelligence, though the net impact of this in H2 should be less pronounced as our technology gains traction with key clients.
 
In our Agency segment, we have had a number of significant new business wins, which over time should drive higher margins. The collaborative "One Jaywing" nature of our work has produced some excellent solutions for our clients and continues to differentiate when pitching for new client work.
 
With the disposal process of HSM Limited now complete, management can now focus on driving up the profitability of the core business and exiting the year in a strong position with good momentum.
 
 
Rob Shaw
Chief Executive Officer
19 November 2018

 
Consolidated interim statement of comprehensive income (unaudited)
 




 


 


 
Unaudited
Six months ended
30 Sept 2018


Restated
Unaudited
Six months ended
30 Sept 2017


 
 
Audited year
ended
31 March 2018




 


Note


£'000


£'000


£'000




 


 


 


 


 




 


 


 


 


 




Revenue


    4


21,984


23,466


47,541




Direct costs


 


(3,826)


(5,534)


(10,826)




Gross profit


 


18,158


17,932


36,715




Other operating income


 


-


46


64




Amortisation


 


(950)


(1,010)


(2,033)




Operating expenses


 


(17,794)


(17,198)


(35,759)




Operating loss


 


(586)


(230)


(1,013)




Finance income


 


2


-


-




Finance costs


 


(159)


(79)


(203)




Net financing costs


 


(157)


(79)


(203)




Loss before tax


 


(743)


(309)


(1,216)




Tax credit / (expense)


  5


109


(67)


83




Loss for the period from continuing operations


 


(634)


(376)


(1,133)




Exchange differences on retranslation of foreign operations


 


(5)


(10)


(39)




Loss for the period attributable to the equity holders of the parent


 


(639)


(386)


(1,172)




 


 


 


 


 




 
Loss per ordinary share


 
   6


 


 


 




Basic loss per share


 


(0.68p)


(0.44p)


(1.25p)




 


 


 


 


 




Diluted loss per share


 


(0.68p)


(0.44p)


(1.25p)




 


 


 


 


 




 


 


 


 


 




 


 


 


 


 




 
  
 
Consolidated interim balance sheet (unaudited)




 


 


 
Unaudited
30 Sept 2018


Restated
Unaudited
30 Sept 2017


 
Audited
31 March 2018




 


Note


£'000


£'000


£'000




Assets


 


 


 


 




Non-current assets


 


 


 


 




Property, plant and equipment


 


1,342


1,423


1,443




Goodwill


 


34,674


33,842


34,496




Other intangible assets


 


5,106


6,296


5,962




 


 


41,122


41,561


41,901




 


 


 


 


 




Current assets


 


 


 


 




Trade and other receivables


 


13,071


12,687


11,754




Cash and cash equivalents


 


2


1


632




 


 


13,073


12,688


12,386




Total assets


 


54,195


54,249


54,287




 


 


 


 


 




Liabilities


 


 


 


 




Current liabilities


 


 


 


 




Bank overdraft


7


(884)


(934)


-




Other interest bearing loans and borrowings


7


(1,500)


(4,750)


(4,750)




Trade and other payables


 


(12,412)


(11,145)


(12,545)




Tax payable


 


(397)


(782)


(249)




Provisions


 


(151)


(172)


(151)




 


 


(15,344)


(17,783)


(17,695)




 


 


 


 


 




Non-current liabilities


 


 


 


 




Other interest bearing loans and borrowings


7


(4,750)


(2,400)


(1,800)




Deferred tax liabilities


 


(809)


(1,078)


(951)




 


 


(5,559)


(3,478)


(2,751)




Total liabilities


 


(20,903)


(21,261)


(20,446)




 


 


 


 


 




Net assets


 


33,292


32,988


33,841




 


 


 


 


 




Equity


 


 


 


 




 
Capital and reserves attributable to equity holders of the company


 


 


 


 




Share capital


 


34,992


34,666


34,992




Share premium account


 


10,088


9,108


10,088




Minority interest


 


1,742


1,513


1,718




Capital redemption reserve


 


125


125


125




Shares purchased for treasury


 


(25)


(25)


(25)




Share option reserve


 


826


614


736




Foreign currency translation reserve


 


(25)


9


(20)




Retained earnings


 


(14,431)


(13,022)


(13,773)




Total equity


 


33,292


32,988


33,841




  
 
 
 
Consolidated interim cash flow statement (unaudited)




 


 


Unaudited
Six months ended
30 Sept 2018


Unaudited
Six months ended
30 Sept 2017


 
Audited year
 ended
31 March 2018




 


Note


£'000


£'000


£'000




Cash flow from operating activities


 


 


 


 




Loss for the period


 


(634)


(376)


(1,133)




Adjustment for:


 


 


 


 




Depreciation, amortisation and impairment


 


1,234


1,264


2,588




Movement in provisions


 


-


(1)


(22)




Foreign exchange


 


(5)


(10)


(39)




Finance income


 


(2)


-


-




Finance costs


 


159


79


203




Share based payment charge


 


152


110


238




Taxation


 


(109)


67


(83)




Operating cash flow before changes in working capital


 


795


1,133


1,752




 


 


 


 


 




Increase in trade and other receivables


 


(1,124)


(1,285)


(360)




Increase/decrease in trade and other payables


 


216


(965)


152




Cash (used in)/generated from operations


 


(113)


(1,117)


1,544




Interest received


 


2


-


-




Interest paid


 


(154)


(79)


(203)




Tax paid


 


-


(71)


(553)




Net cash flow from operating activities


 


(265)


(1,267)


788




Cash flows from investing activities


 


 


 


 




Acquisitions net of cash acquired


 


-


(112)


(647)




Payment of deferred consideration


 


(672)


(2,528)


(2,528)




Acquisition of intangible assets


 


(94)


(76)


(448)




Acquisition of property, plant and equipment


 


(183)


(575)


(865)




Net cash outflow from investing activities


 


(949)


(3,291)


(4,488)




Cash flows from financing activities


 


 


 


 




Increase in borrowings


 


-


2,000


2,000




Repayment of borrowings


 


(300)


(600)


(1,200)




Proceeds from issue of share capital


 


-


9


1,316




Net cash (outflow)/inflow from financing activities


 


(300)


1,409


2,116




Net decrease in cash, cash equivalents and bank overdrafts


 


(1,514)


(3,149)


(1,584)




Cash and cash equivalents at beginning of period


 


632


2,216


2,216




Cash and cash equivalents at end of period


 


(882)


(933)


632




 


 


 


 


 




Cash and cash equivalents comprise:


 


 


 


 




Cash at bank and in hand


 


2


1


632




Bank overdrafts


7


(884)


(934)


-




Cash and cash equivalents at end of period


 


(882)


(933)


632




 


 


 


 


 




 


 


 


 


 




 


 


 


 


 




 
 
 
 
 
Consolidated interim statement of changes in equity (unaudited)
 
 



 

Share
capital


Share
Premium
account


Capital
redemption
reserve


Treasury
shares


Minority
interest


Share
option
reserve


Foreign
currency
translation
reserve


Retained
earnings


Total
equity



 
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000



Balance at 31 March 2017


34,657


9,108


125


(25)


1,513


504


19


(12,646)


33,255




 




Issue of share capital


9


-


-


-


-


-


-


-


9




Acquisition of subsidiaries


 


 


 


 


 


 


 


 


 




Charge in respect of share based payments


-


-


-


-


-


110


-


-


110




Transactions with owners


9


-


-


-


-


110


-


-


119




Loss for the period


-


-


-


-


-


-


-


(376)


(376)




Retranslation of foreign currency


-


-


-


-


-


-


(10)


-


(10)




Total comprehensive income for the period


-


-


-


-


-


-


(10)


(376)


(386)




Balance at 30 September 2017


34,666


9,108


125


(25)


1,513


614


9


(13,022)


32,988




 


 


 


 


 


 


 


 


 


 




Issue of share capital


326


980


-


-


-


-


-


-


1,306




Acquisition of subsidiaries


-


-


-


-


211


-


-


-


211




Charge in respect of share based payments


-


-


-


-


-


122


-


-


122




Transactions with owners


326


980


-


-


211


122


-


-


1,639




Loss for the period


-


-


-


-


(6)


-


-


(751)


(757)




Retranslation of foreign currency


-


-


-


-


-


-


(29)


-


(29)




Total comprehensive income for the period


-


-


-


-


(6)


-


(29)


(751)


(786)




Balance at 31 March 2018 (audited)


34,992


10,088


125


(25)


1,718


736


(20)


(13,773)


33,841




 


 


 


 


 


 


 


 


 


 




Charge in respect of share based payments


-


-


-


-


-


90


-


-


90




Transactions with owners


-


-


-


-


-


90


-


-


90




Profit / (loss) for the period


-


-


-


-


24


-


-


(658)


(634)




Retranslation of foreign currency


-


-


-


-


-


-


(5)


-


(5)




Total comprehensive income for the period


-


-


-


-


24


-


(5)


(658)


(639)




Balance at 30 September 2018


34,992


10,088


125


(25)


1,742


826


(25)


(14,431)


33,292




 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 November 2018.
 
2.     Basis of preparation
 
The consolidated interim financial statements for the six months ended 30 September 2018, 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 2018 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 2018 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 2018, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.
 
During the prior year, a brought forward adjustment was made to correct a client media spend provision held in the accounts. The reserves balance carried forward at 31 March 2017 has been reduced by £538k.
 
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 2018 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 following standards and interpretations of relevance to the Group have been issued but are not yet effective and have not been adopted by the Group:
· IFRS 16 Leases (effective 1 January 2019)
 
As of 1 April 2018, the Group adopted IFRS 15 "revenue from contracts with customers".
 
Revenue arises from the provision of marketing services. To determine whether to recognise revenue, the Group follows a 5-step process as follows:
 
1.     Identifying the contract with a customer
2.     Identifying the performance obligations
3.     Determining the transaction price
4.     Allocating the transaction price to the performance obligations
5.     Recognising revenue when / as performance obligations are satisfied
 
Revenue is measured at transaction price, stated net of VAT and other sales related taxes. Revenue is generally recognised over time as the Group satisfies performance obligations by transferring the promised services to its customers.
 
The standard is required to be adopted either retrospectively or using a modified retrospective approach. The Group used the modified retrospective approach to adopt the standard. Under this transitional provision, the cumulative effect of initially applying IFRS 15 is recognised on the date of initial application as an adjustment to retained earnings. No adjustment to retained earnings was required upon adoption of IFRS 15.
 
The Group has reviewed its various revenue streams and underlying contracts with customers and, as a result of the review, the adoption of IFRS 15 did not have an impact on the Group's statements of comprehensive income and financial position.
 
The Group does not currently anticipate that the adoption of the other standards and interpretations above will have a material impact on the Group's financial statements in the period of initial application other than IFRS 16 Leases. A review of IFRS 16 will be conducted to determine its impact on the Group.
 
Other standards and interpretations in issue but not yet effective are not considered to have any relevance to the Group.
 
4.     Segment information (unaudited)
 
The Group reports its business activities in two areas: Agency Services and Media & Analysis being its two primary business activities. Unallocated represents the Group's head office function, along with intragroup transactions.
Total assets exclude intangible assets, cash and external borrowings which have not been allocated to operating segments. The majority of the Group's activities are carried out within the UK. There is also a subsidiary in Australia.
 
4.     Segment information (unaudited) (continued)
 




Six months ended 30 September 2018


 


 


 




 


Agency Services


Media & Analysis


Central


Total Group




 


£'000


£'000


£'000


£'000




Revenue


8,706


14,215


(937)


21,984




Direct costs


(1,398)


(3,365)


937


(3,826)




Gross profit


7,308


10,850


-


18,158




Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments


(6,560)


(8,022)


(2,245)


(16,827)




Operating profit / (loss) before depreciation, amortisation, exceptional items, acquisition related costs and credit for share based payments


748


2,828


(2,245)


1,331




Depreciation


(108)


(133)


(43)


(284)




Amortisation


(513)


(437)


-


(950)




Other exceptional costs


(57)


(55)


(224)


(336)




Acquisition related costs


-


-


(147)


(147)




Charge for share based payments


-


-


(200)


(200)




Operating profit / (loss)


70


2,203


(2,859)


(586)




Finance costs


 


 


 


(157)




Loss before tax


 


 


 


(743)




Tax expense


 


 


 


109




Loss for the period


 


 


 


(634)




 
Six months ended 30 September 2017 (restated)


 


 


 




 


Agency Services


Media & Analysis


Central


Total Group




 


£'000


£'000


£'000


£'000




 


 


 


 


 




Revenue


8,381


15,801


(716)


23,466




Direct costs


(1,259)


(4,991)


716


(5,534)




Gross profit


7,122


10,810


-


17,932




Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments


(6,181)


(7,747)


(2,550)


(16,478)




Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments


941


3,063


(2,550)


1,454




Depreciation


(107)


(116)


(31)


(254)




Amortisation


(646)


(364)


-


(1,010)




Other operating income


46


-


-


46




Compensation for loss of office


(29)


(80)


(37)


(146)




Acquisition related costs


-


-


(42)


(42)




Charge for share based payments


-


-


(278)


(278)




Operating profit / (loss)


205


2,503


(2,938)


(230)




Finance costs


 


 


 


(79)




Loss before tax


 


 


 


(309)




Tax expense


 


 


 


(67)




Loss for the period


 


 


 


(376)




 
 
 
4.   Segment information (unaudited) (continued)
 




Year ended 31 March 2018 (audited)


 


 


 




 


Agency Services


Media & Analysis


Central


Total




 


£'000


£'000


£'000


£'000




Revenue


18,025


31,565


(2,049)


47,541




Direct costs


(2,718)


(10,157)


2,049


(10,826)




Gross profit


15,307


21,408


-


36,715




Operating expenses excluding depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments


(12,979)


(15,449)


(5,262)


(33,690)




Operating profit/(loss) before depreciation, amortisation, exceptional items, acquisition related costs and charges for share based payments


2,328


5,959


(5,262)


3,025




Other operating income


64


-


-


64




Depreciation


(222)


(231)


(102)


(555)




Amortisation


(1,293)


(740)


-


(2,033)




Exceptional costs


(12)


(282)


(200)


(494)




Acquisition related costs


-


-


(827)


(827)




Charges for share based payments


(51)


(4)


(138)


(193)




Operating (loss)/profit


814


4,702


(6,529)


(1,013)




Finance income


 


 


 


-




Finance costs


 


 


 


(203)




Loss before tax


 


 


 


(1,216)




Tax expense


 


 


 


83




Loss for the period


 


 


 


(1,133)




 


 


 


 


 




The September 2017 segmental analysis has been restated to reallocate some costs between direct costs and operating expenses.
 




Total assets


Agency Services


Media & Analysis


Central


Total




 


£'000


£'000


£'000


£'000




30 September 2018


25,306


34,164


(5,275)


54,195




31 March 2018


28,408


32,278


(6,399)


54,287




30 September 2017


27,128


26,613


508


54,249




 


 


 


 


 




 
 
 
5.     Tax credit / (expense) (unaudited)
 
A reconciliation of the charge that would result from applying the standard UK corporation tax rate to profit before tax to the tax charge is given below.
 




 


 


Six months ended
30 Sept 2018


Six months ended
30 Sept 2017


Audited year
 ended
31 March 2018




 


 


£'000


£'000


£'000




Recognised in the consolidated statement of comprehensive income:


 


 


 


 




Current year tax


 


(33)


(220)


(262)




Origination and reversal of temporary differences


 


142


153


345




Total tax credit / (charge)


 


109


(67)


83




Loss before tax


 


(743)


(309)


(1,216)




Tax charge thereon at UK corporation tax rate of 19% (2017: 20%)


 


141


62


231




Effects of:


 


 


 


 




Non-deductible expenses


 


(32)


(129)


(112)




Share based payment charges


 


-


-


(36)




Total tax credit / (charge)


 


109


(67)


83




 
 
6.     Loss per share (unaudited)
 




 


 


Six months ended
30 Sept 2018


Six months ended
30 Sept 2017


Audited year
 ended
31 March 2018




 


 


Pence per share


Pence per share


Pence per
Share




 


 


 


 


 




Basic loss per share


 


(0.68p)


(0.44p)


(1.25p)




 


 


 


 


 




Diluted loss per share


 


(0.68p)


(0.44p)


(1.25p)




 
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 2018


Six months ended
30 Sept 2017


Audited year
 ended
31 March 2018




 


 


£'000


£'000


£'000




Loss for the period


 


(639)


(386)


(1,172)




 


 


 


 


 




Weighted average number of ordinary shares in issue:


 


Number '000


Number '000


Number '000




Basic


 


93,432


86,896


93,432




Adjustment for share options, warrants and contingent shares


 


6,104


5,268


6,126




Diluted


 


99,536


92,164


99,558




 


 


 


 


 




 
 


 


 


 


 



 
 
 
 
 
 



 
 




Adjusted earnings per share


 


 


 


 




 


 


Six months ended
30 Sept 2018


Six months ended
30 Sept 2017


Audited year
 ended
31 March 2018




 


 


Pence per share


Pence per share


Pence per
Share




 


 


 


 


 




Basic adjusted earnings per share


 


0.56p


0.92p


1.73p




Diluted adjusted earnings per share


 


0.52p


0.87p


1.62p




 
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 2018


Six months ended
30 Sept 2017


Audited year
 ended
31 March 2018




 


 


£'000


£'000


£'000




Loss before tax


 


(743)


(309)


(1,172)




Amortisation


 


950


1,010


2,033




Acquisition related costs


 


147


42


827




Charge for share based payments


 


200


278


193




Adjusted profit attributable to shareholders


 


554


1,021


1,881




Current period tax charge


 


(33)


(220)


(262)




 


 


521


801


1,619




 


 


 


 


 




7.     Bank overdraft, borrowings and loans (unaudited)




 


 


30 Sept 2018


30 Sept 2017


Audited
31 March 2018




Summary


 


£'000


£'000


£'000




Bank overdraft


 


884


934


-




Borrowings, undiscounted cash flows


 


6,250


7,150


6,550




 


 


7,134


8,084


6,550




 


 


 


 


 




Borrowings are repayable as follows:


 


 


 


 




Within 1 year


 


 


 


 




  Bank overdraft


 


884


934


-




  Borrowings


 


1,500


4,750


4,750




Total due within 1 year


 


2,384


5,684


4,750




 


 


 


 


 




In more than one year but less than two years


 


1,800


1,200


1,800




In more than two years but less than three years


 


1,800


1,200


-




In more than three years but less than four years


 


1,150


-


-




Total amount due


 


7,134


8,084


6,550




 


 


 


 


 




Average interest rates at the balance sheet date were:


 


%


%


%




  Overdraft


 


2.00


-


-




  Term loan


 


4.00


2.61


2.25




  Revolving credit facility


 


-


2.51


2.25




 
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 2018 were £1.1 million (2017: £1.1 million) and, taking into account cash balances within the Group, there was £1.1 million (2017: £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 2018


2


(884)


(6,250)


(7,132)




31 March 2018


632


-


(6,550)


(5,918)




30 September 2017


1


(934)


(7,150)


(8,083)




 
 
 
 
8.     Provisions (unaudited)
 




 


 


 
30 Sept 2018


 
30 Sept 2017


Audited
31 March 2018




 


 


£'000


£'000


£'000




At the beginning of the period


 


151


173


173




Additional provisions


 


-


(1)


(22)




At the end of the period


 


151


172


151




 


 


 


 


 




Provisions relate to leases in the Group where the commercial benefit has either ceased or will cease before the normal expiry period.
 
9.     Share capital (unaudited)
 
Authorised:




 


 


 


 


 




 


45p deferred shares


5p ordinary shares


 




 


£'000


£'000


 




Authorised share capital at 31 March 2018 and 30 September 2018


45,000


10,000


 




 


 


 


 



 
 
 
 
 
 
 



 
Allotted, issued and fully paid
 




 


45p deferred shares


5p ordinary shares


 




 


Number


Number


£'000




Issued share capital at 31 March 2018 and 30 September 2018


67,378,520


93,432,217


34,992




 


 


 


 


 



 
 
 
 
 
 



 
10.   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 2018.
 
11.   Post balance sheet event
 
On 19 November 2018 Jaywing plc agreed the sale of the entire share capital of HSM Limited for an upfront consideration of £500,000.
 
 
 




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