REG - MJ Gleeson Plc - Final Results <Origin Href="QuoteRef">GLEG.L</Origin> - Part 2
28/09/2015 07:00
- Part 2: For the preceding part double click ID:nRSb2958Aa
Capital Solutions division. There is no further business
within the division and is treated as discontinued.
The Group has closed its Gleeson Commercial Property Development division and
it is treated as discontinued.
Gleeson Capital Solutions Gleeson Commercial Property Develop-ments Gleeson Construction Services Total Gleeson Capital Solutions Gleeson Commercial Property Develop-ments Gleeson Construction Services Total
2015 2015 2015 2015 2014 2014 2014 2014
£000 £000 £000 £000 £000 £000 £000 £000
Revenue - - 237 237 - - 100 100
Cost of sales - - (275) (275) - - (46) (46)
Gross (loss)/profit - - (38) (38) - - 54 54
Administrative expenses - - (169) (169) - - (185) (185)
Operating loss - - (207) (207) - - (131) (131)
Loss before tax - - (207) (207) - - (131) (131)
Tax - - - - (77) - (23) (100)
Loss for the year from discontinued operations - - (207) (207) (77) - (154) (231)
Loss per share - impact of discontinued operations
2015 2014
p p
Basic (0.39) (0.44)
The cash flow statement includes the following relating to the operating loss on discontinued operations:
2015 2014
£000 £000
Operating activities (73) (83)
4. Exceptional items
2015 2014
£000 £000
Re-instatement of inventories and contract provisions - 800
Deferred tax - 8,326
Restructuring costs (1,236) -
Provision for diminution in value of investments (4,896) -
(6,132) 9,126
Restructuring costs
Reorganisation costs of £1,236,000 were incurred on consultancy and legal
costs relating to the Scheme of Arrangement.
Provision for diminution in value of investments
The Group made a provision of £4,896,000 being the carrying value against its
investment in GB Building Solutions Limited and GB Group Holdings Limited
("GBGH") which went into administration on 9 March 2015.
Impairment of inventories and contract provisions
At 30 June 2015, the Group conducted a review of the net realisable value of
the land and work-in-progress carrying values of its sites in the light of the
condition of the UK housing market. Where the estimated net present
realisable value is greater than the carrying value 2015: £nil (2014:
£800,000) within the Balance Sheet, the Group has partially reversed the
impairment previously made.
Deferred tax on tax losses
During the year, the Group recognised £nil (2014: £8,326,000) of previously
unrecognised deferred tax asset in relation to tax losses available to offset
against future profits.
During the year the exceptional income of £nil (2014: £800,000) and the tax
credit of £nil (2014: £8,326,000) were reported in the Gleeson Homes division.
The reorganisation costs of £1,236,000 (2014: £nil) and the provision for
diminution in value of investments of £4,896,000 (2014: £nil) were reported
under Group activity.
5. Financial income and expenses
Continuing operations Discontinued operations Total
2015 2014 2015 2014 2015 2014
£000 £000 £000 £000 £000 £000
Financial income
Interest on bank deposits 4 7 - - 4 7
Other interest 1 17 - - 1 17
Unwinding of discount on deferred receipts 491 461 - - 491 461
496 485 - - 496 485
Financial expenses
Interest on bank overdrafts and loans - (48) - - - (48)
Bank charges (383) (240) - - (383) (240)
Interest and unwinding of discount on deferred payments - (101) - - - (101)
(383) (389) - - (383) (389)
Net financial income 113 96 - - 113 96
6. Tax
Continuing operations Discontinued operations Total
2015 2014 2015 2014 2015 2014
£000 £000 £000 £000 £000 £000
Current tax:
Adjustment in respect of prior years 3 (6) - 88 3 82
3 (6) - 88 3 82
Deferred tax:
Current year expense/credit) 4,959 (5,876) - 6 4,959 (5,870)
Adjustment in respect of prior years (54) - - (54) -
Impact of rate change (60) 383 - 6 (60) 389
Deferred tax /expense/(credit) for the year 4,845 (5,493) - 12 4,845 (5,481)
Total tax charge/(credit) 4,848 (5,499) - 100 4,848 (5,399)
Reductions in the UK corporation tax rate from 24% to 23% (effective 1 April
2013) and to 21% (effective 1 April 2014) were substantively enacted on 3 July
2012 and 2 July 2013 respectively. A further reduction to 20% effective from
1 April 2015 was substantively enacted on 2 July 2013. The weighted average
rate of corporation tax was 20.75% (2014: 22.50%) of the estimated assessable
profit for the year.
The charge for the year can be reconciled to the profit per the Statement of
Comprehensive Income as follows:
2015 2014
£000 £000
Profit before tax on continuing operations 17,263 12,160
Loss before tax from discontinued operations (207) (131)
Profit before tax 17,056 12,029
Tax charge at standard rate 3,539 2,707
Tax effect of:
Expenses that are not deductible in determining taxable profits 1,313 287
Tax reliefs not recognised in the Statement of Comprehensive Income - (538)
Utilisation of tax losses not previously recognised 110 -
Recognition of tax losses not previously recognised - (8,326)
Changes in tax rates (60) 389
Adjustments in respect of prior years (54) 82
Tax charge and effective tax rate for the year 4,848 (5,399)
7. Dividends
2015 2014
£000 £000
Amounts recognised as distributions to equity holders in the year:
Interim dividend for the year ended 30 June 2015 of 2.7p (2014: 1.1 p) per share 1,448 582
Final dividend for the year ended 30 June 2014 of 4.9p (2013: 2.0p) per share 2,629 1,058
4,077 1,640
The proposed final dividend for the year ended 30 June 2015 of 7.3p per share
(2014: 4.9p) makes a total dividend for the year of 10.0p (2014: 6.0p).
The proposed final dividend is subject to approval by shareholders at the AGM
and has not been included as a liability in these Financial Statements. The
total estimated dividend to be paid is £5,370,000.
8. Earnings per share
Continuing and discontinued operations
The calculation of the basic and diluted earnings per share is based on the
following:
2015 2014
Earnings £000 £000
Earnings for the purposes of basic earnings per share, being net profit
attributable to equity holders of the parent company
Profit from continuing operations 12,415 17,659
Loss from discontinued operations (207) (231)
Profit for the purposes of basic and diluted earnings per share 12,208 17,428
2015 2014
No. 000 No. 000
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share 53,614 52,941
Effect of dilutive potential ordinary shares:
- - share options 383 915
Weighted average number of ordinary shares for the purposes of diluted earnings per share 53,997 53,856
2015 2014
From continuing operations
Basic earnings per share 23.16p 33.36p
Diluted earnings per share 22.99p 32.79p
From discontinued operations
Basic earnings per share (0.39)p (0.44)p
Diluted earnings per share (0.39)p (0.44)p
From continuing and discontinued operations
Basic earnings per share 22.77p 32.92p
Diluted earnings per share 22.61p 32.36p
2015 2014
£000 £000
Normalised earnings per share from continuing and discontinued operations
Profit for the purposes of basic and diluted earnings per share 12,208 17,428
Adjust for the impact of exceptional costs/credits 6,132 (8,326)
Normalised earnings 18,340 9,102
2015 2014
Normalised basic earnings per share 34.21p 17.19p
Normalised diluted earnings per share 33.96p 16.90p
This information is provided by RNS
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