REG - OMG PLC - Preliminary Results <Origin Href="QuoteRef">OMG1.L</Origin> - Part 2
08/12/2015 07:10
- Part 2: For the preceding part double click ID:nRSH2804Ia
(424) (298) 753 1,487 (424) (301) 762
Yotta Group 2,035 (531) (722) 782 1,543 (538) (607) 398
OMG Life Group (2,497) (657) (238) (3,392) (4,346) 14 (402) (4,734)
Unallocated (2,404) (87) 2,308 (183) (2,170) (159) 2,333 4
Continuing operations 2,392 (1,356) 343 1,379 7 (691) 629 (55)
House of Moves** (93) (175) - (268) (373) (616) - (989)
2d3 UK 2,693 (8) (208) 2,477 241 (11) (376) (146)
2d3 USA (3,819) 10,840 (135) 6,886 1,092 (233) (253) 606
2d3 Group (1,126) 10,832 (343) 9,363 1,333 (244) (629) 460
Discontinued operations (1,219) 10,657 (343) 9,095 960 (860) (629) (529)
OMG Group 1,173 9,301 - 10,474 967 (1,551) - (584)
Adjusted profit before tax is detailed in note 5.
**House of Moves was considered part of the Vicon Group prior to its sale on
15 October 2014.
Non-current assets Additions to non-current assets Carrying amount of segment assets Carrying amount of segment liabilities Segment depreciation and amortisation
2015 2014 2015 2014 2015 2014 2015 2014 2015 2014
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Vicon UK 3,501 2,748 1,752 1,552 16,262 8,459 (3,229) (2,346) 797 863
Vicon USA 885 701 330 43 4,772 4,321 (1,332) (1,561) 84 45
Vicon Group 4,386 3,449 2,082 1,595 21,034 12,780 (4,561) (3,907) 881 908
Yotta UK 4,288 4,477 458 407 9,076 10,497 (2,531) (1,702) 611 594
Yotta Mayrise 4,197 4,586 66 23 10,967 9,371 (1,757) (1,833) 448 458
Yotta Group 8,485 9,063 524 430 20,043 19,868 (4,288) (3,535) 1,059 1,052
OMG Life Group 1,532 1,633 776 862 (3,864) (2,090) (520) (779) 893 1,137
Unallocated 2,091 303 32 17 2,498 (400) (1,310) (622) 21 20
Continuing operations 16,494 14,448 3,414 2,904 39,711 30,158 (10,679) (8,843) 2,854 3,117
Yotta USA - - - - 28 26 (5) (5) - -
House of Moves** - - - 26 - 720 - (45) - 27
2d3 UK - 11 23 2 - 2,353 - (48) 3 4
2d3 USA - 4,297 18 313 - 8,665 - (2,163) 255 390
2d3 Group - 4,308 41 315 - 11,018 - (2,211) 258 394
Discontinued operations - 4,308 41 341 28 11,764 (5) (2,261) 258 421
OMG Group 16,494 18,756 3,455 3,245 39,739 41,922 (10,684) (11,104) 3,112 3,538
**House of Moves was considered part of the Vicon Group prior to its sale on
15 October 2014.
4. Profit/(loss) for the year
The profit/(loss) for the year is stated after charging / (crediting):
2015 2014
£'000 £'000
(Profit)/loss on disposal of property, plant and equipment (71) 4
Depreciation of property, plant and equipment - owned 575 584
- under hire purchase/finance lease 82 105
Amortisation of customer relationships 397 429
Amortisation of intellectual property 228 310
Amortisation of development costs 1,415 2,110
Impairment of intangible fixed assets 415 903
Share based payments - equity settled 170 189
Operating lease charges - other than plant and machinery 721 906
Foreign exchange 41 27
Grant income received 490 227
5. Reconciliation of adjusted profit/(loss) before tax
A reconciliation of profit/(loss) before tax to adjusted profit/(loss) before
tax, which the Board consider better reflects operational performance is
provided below. This measure complements the statutory measure as reported in
the Consolidated Income Statement and is a performance indicator provided to
the Chief Operating Decision Maker.
2015 2014
£'000 £'000
Profit/(loss) before tax - continuing operations 1,379 (55)
Share based payments - equity settled 154 166
Amortisation of intangibles arising on acquisition 502 516
Compensation to contract manufacturer and Autographer inventory write off 540 -
Redundancy costs 160 9
Reapportion Group overheads (343) (629)
Adjusted profit before tax - continuing operations 2,392 7
Profit/(loss) before tax - discontinued operations 9,095 (529)
Share based payments - equity settled 16 24
Amortisation of intangibles arising on acquisition 124 220
Impairment of goodwill - 616
Profit on disposal of House of Moves and 2d3 Group (10,797) -
Reapportion Group overheads 343 629
Adjusted (loss)/profit before tax - discontinued operations (1,219) 960
Total adjusted profit before tax - all operations 1,173 967
The redundancy costs in the year ended 30 September 2015 are associated with
the restructuring of the Yotta UK, Vicon and OMG Life business segments.
Those in the year ended 30 September 2014 are associated with the
restructuring of the Yotta UK business only.
The compensation to contract manufacturer and Autographer inventory write off
relates to the cost of terminating the contract with our manufacturer in OMG
Life Limited.
6. Taxation
The tax is based on the profit/(loss) for the year and represents:
2015 2014
£'000 £'000
United Kingdom corporation tax at 20.5% (2014: 22.0%) 212 -
Overseas taxation 2,041 66
Adjustments in respect of prior year (155) (16)
Current taxation 2,098 50
Deferred taxation 334 (64)
Total taxation expense / (income) 2,432 (14)
Continuing and discontinued operations:
2015 2014
£'000 £'000
Income tax (credit)/expense from continuing operations 144 49
Income tax expense / (credit) from discontinued operations excluding gain on sale (372) (63)
(228) (14)
Total tax expense:
2015 2014
£'000 £'000
Income tax credit excluding tax on sale of discontinued operations (228) (14)
Income tax expense on gain on sale of discontinued operations 2,660 -
2,432 (14)
At 30 September 2015, the Group had an undiscounted deferred tax asset of
£632,000 (2014: £614,000). The asset comprises principally accelerated
capital allowances, the accumulated unrelieved tax losses available to Group
undertakings to offset against future taxable trading profits of the same
trade and future tax relief available on the exercise of outstanding employee
share options in OMG plc.
Deferred tax assets and liabilities have been measured at an effective rate of
20% and 38% in the UK and USA, respectively (2014: 20% and 38%,
respectively).
The inclusion of legislation to reduce the main rate of corporation tax from
20% to 19% from 1 April 2017 and then a further reduction to 18% from 1 April
2020 was substantively enacted on 26 October 2015.
For the purposes of deferred tax, the rate change from 20% to 19% was
substantively enacted after the balance sheet date.
The tax assessed for the year is lower than the standard rate of corporation
tax in the UK of 20.5% (2014: lower than the standard rate of 22.0%).
The differences are explained as follows:
2015 2014
£'000 £'000
Profit /(loss) on ordinary activities before tax 10,474 (584)
Expected tax income based on the standard rate of 2,147 (128)
corporation tax in the UK of 20.5% (2014: 22.0%)
Effect of:
Expenses not deductible for tax purposes 61 (47)
Tax gain on sale of discontinued operation in excess of book gain 346 -
Book gain on sale of discontinued operation in excess of tax gain (1,732) -
Unrelieved current year losses 475 241
Utilisation of losses brought forward - 142
Adjustments to tax charge in respect of prior year current tax (155) (16)
Adjustments to tax charge in respect of prior year deferred tax (203) -
Higher rates on overseas taxation 1,754 47
Research and development tax credit (320) (245)
Tax deduction in excess of income statement charge 6 -
Effect of rate change 53 (8)
Total tax expense / (income) 2,432 (14)
7. Finance income and expense
2015 2014
£'000 £'000
Finance expense - Hire purchase liabilities (6) (10)
- Bank interest paid (4) (5)
(10) (15)
Finance income - Interest income on short term bank deposits 30 6
- Unwinding of discount on contingent consideration 10 -
40 6
8. Earnings/(loss) per share
2015 2014
Earnings/(loss) Weighted average number of shares Per share amount Earnings/ (loss) Weighted average number of shares Per share amount
£'000 '000 (pence) £'000 '000 (pence)
Continuing operations
Basic earnings per share
Earnings attributable to ordinary shareholders 1,235 114,626 1.08 (104) 111,334 (0.09)
Dilutive effect of employee share options - 2,789 (0.03) - - -
Diluted earnings per share 1,235 117,415 1.05 (104) 111,334 (0.09)
Discontinued operations
Basic earnings/(loss) per share
Earnings attributable to ordinary shareholders 6,807 114,626 5.94 (466) 111,334 (0.42)
Dilutive effect of employee share options - 2,789 (0.14) - - -
Diluted earnings/(loss) per share 6,807 117,415 5.80 (466) 111,334 (0.42)
Total operations
Basic earnings/(loss) per share
Loss attributable to ordinary shareholders 8,042 114,626 7.02 (570) 111,334 (0.51)
Dilutive effect of employee share options - 2,789 (0.17) - - -
Diluted earnings/(loss) per share 8,042 117,415 6.85 (570) 111,334 (0.51)
(0.51)
Basic earnings per share is calculated by dividing the profit/(loss)
attributable to equity holders of the Company by the weighted average number
of ordinary shares in issue during the year.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares (share options). For share options a calculation is
done to determine the number of shares that could have been acquired at fair
value (determined as the average annual market share price of the Company's
shares) based on the monetary value of the subscriptions rights and
outstanding share based payment charges attached to outstanding share options.
The number of shares calculated as above is compared with the number of
shares that would have been issued assuming the exercise price of the share
options.
9. Dividends
2015 2014
Equity - ordinary £'000 £'000
Final 2014 paid in 2015 (0.50 pence per share) 567 -
Special paid in 2015 (4.5 pence per share) 5,102 -
Special paid in 2015 (5.0 pence per share) 5,872 -
Final 2013 paid in 2014 (0.40 pence per share) - 429
11,541 429
The directors have announced a further special dividend of 3.75 pence per
share which will absorb an estimated £4,404,000 of shareholders' funds. This
dividend will be paid on 12 January 2016 to shareholders on the register of
members at close of business on 18 December 2015.
The directors are proposing a final dividend in respect of the financial year
ended 30 September 2015 of 0.65 pence per share (2014: 0.50 pence per share)
which will absorb an estimated £763,000 of shareholders' funds. This dividend
will be paid on 9 March 2016 to shareholders who are on the register of
members at close of business on 18 December 2015 subject to approval at the
AGM. These dividends have not been accrued in these financial statements.
10. Copies of announcement
Copies of this announcement will be available from the Company's registered
office at 14 Minns Business Park, West Way, Oxford, OX2 0JB.
This information is provided by RNS
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