REG - OMG PLC - Preliminary Results <Origin Href="QuoteRef">OMG1.L</Origin> - Part 2
06/12/2016 07:06
- Part 2: For the preceding part double click ID:nRSF0230Ra
4,110
Cash and cash equivalents at beginning of the period 11,738 7,628
Cash and cash equivalents at end of the period 8,273 11,738
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER
2016
Group Sharecapital Shares to be issued Share premium account Merger reserve Retained earnings Cash flow hedging reserve Foreign currency translation reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance as at 1 October 2014 283 65 15,443 6,589 8,493 - (55) 30,818
Net profit for the year - - - - 8,042 - - 8,042
Exchange differences on retranslation of overseas subsidiaries - - - - - - 336 336
Transfer between reserves - - - (6,589) 6,815 - (226) -
Tax recognised directly in equity - - - - 336 - - 336
Transactions with owners:
Dividends - - - - (11,541) - - (11,541)
Issue of share capital 11 - 883 - - - 894
Movement in relation to share options - - - - 170 - - 170
Balance as at 30 September 2015 294 65 16,326 - 12,315 - 55 29,055
Net profit for the year - - - - 2,271 - - 2,271
Exchange differences on retranslation of overseas subsidiaries - - - - - - 224 224
Loss on hedging instrument - - - - - (158) - (158)
Tax recognised directly in equity - - - - 121 - - 121
Transactions with owners:
Dividends - - - - (5,304) - - (5,304)
Issue of share capital 9 - 508 - - - - 517
Movement in relation to share options - - - - 103 - - 103
Balance as at 30 September 2016 303 65 16,834 - 9,506 (158) 279 26,829
1. Basis of preparation of the financial information
The financial information in this preliminary announcement has been prepared
in accordance with the recognition and measurement criteria of IFRSs, this
announcement does not itself contain sufficient information to comply with
IFRSs. The Company expects to publish full financial statements that comply
with IFRS on 6th December 2016.
The preparation of financial statements in conformity with IFRS requires the
use of certain critical accounting estimates. It also requires management to
exercise judgement in the process of applying the Group's accounting policies
which affect the reported amount of assets and liabilities at the balance
sheet date and the reported amounts of revenues and expenses during the
reported period. Although the estimates are based on management's best
knowledge of the amount, event or actions, actual results may ultimately
differ from those estimates. There have been no significant changes to the
Group's accounting policies during the year.
The financial information set out in this preliminary announcement does not
constitute statutory accounts for the years ended 30 September 2016 and 30
September 2015, but is derived from those accounts. The statutory accounts for
the year ended 30 September 2015 have been delivered to the Registrar of
Companies and those for the year ended 30 September 2016 will be delivered
following the Company's annual general meeting. The auditors have reported on
those accounts: their report was unqualified, did not contain references to
any matters to which the auditors drew attention by way of emphasis and did
not contain a statement under Section 498 of the Companies Act 2006 for the
year ended 30 September 2016 or 30 September 2015.
2. Basis of consolidation
The consolidated financial information incorporates the results of the Company
and all of its subsidiary undertakings drawn up to 30 September 2016.
3. Segmental analysis
Segment information is presented in the financial information in respect of
the Group's business segments, which are reported to the Chief Operating
Decision Maker (CODM). The Group has identified the Board of Directors of OMG
plc ("the Board") as the CODM. The business segment reporting reflects the
Group's management and internal reporting structure.
The Group comprises the following business segments:
· Vicon Group: This is the development, production and sale of computer
software and equipment for the engineering, entertainment and life science
markets;
· Yotta Group: This is services for the management of infrastructure,
highway surveying and associated software development;
· 2d3 Group: This is the development and sale of computer software for
the defence market; and
· OMG Life: Development and sale of software and hardware solutions for
the consumer electronics market.
Other unallocated costs represent head office expenses not recharged to
subsidiary companies.
Inter segment transfers are priced along the same lines as sales to external
customers, with an appropriate discount being applied to encourage use of
Group resources. This policy was applied consistently throughout the current
and prior year. There were no significant inter segment transfers during the
current or prior year.
Intra segment sales between Vicon UK and Vicon USA are eliminated prior to
management and internal reporting, and hence are not shown separately in the
analysis below. The total sales from Vicon UK to Vicon USA in the year ended
30 September 2016 are £6,150,000 (2015: £3,416,000).
Segment assets consist primarily of property, plant and equipment, intangible
assets, inventories and trade and other receivables. Unallocated assets
comprise deferred taxation, investments and cash and cash equivalents.
Business segments are analysed below:
Revenue
2016 2015
£'000 £'000
Vicon UK 9,607 9,458
Vicon USA 10,802 7,637
Vicon Group 20,409 17,095
Yotta UK 5,889 5,708
Yotta Mayrise 3,194 2,930
Yotta Group 9,083 8,638
Continuing operations 29,492 25,733
OMG Life Group 87 32
House of Moves** - 38
2d3 UK - 380
2d3 USA - 1,580
2d3 Group - 1,960
Discontinued operations 87 2,030
OMG Group 29,579 27,763
Revenue
2016 2015
£'000 £'000
By destination
UK 11,218 10,386
Europe 3,014 2,532
North America 10,246 7,306
Asia Pacific 4,049 4,854
Other 965 655
Continuing operations 29,492 25,733
UK 1 274
Europe - 161
North America 86 1,580
Asia Pacific - 15
Discontinued operations 87 2,030
OMG Group 29,579 27,763
By origin
UK 18,670 18,096
North America 10,802 7,637
Asia Pacific 20 -
Continuing operations 29,492 25,733
UK 82 447
North America 5 1,583
Discontinued operations 87 2,030
OMG Group 29,579 27,763
2016 2015
£'000 £'000
Vicon revenue by market
Engineering 4,490 3,605
Entertainment 5,635 4,595
Life sciences 10,284 8,895
Vicon Group* 20,409 17,095
Group revenue by type
Sale of hardware 19,359 15,580
Sale of software 2,081 1,572
Rendering of services 8,052 8,581
Continuing operations 29,492 25,733
Sale of hardware - 32
Sale of software - 1,226
Rendering of services 87 772
Discontinued operations 87 2,030
OMG Group 29,579 27,763
Yotta revenue by type
Software and related services 5,775 4,743
Surveying services 3,308 3,895
Yotta Group 9,083 8,638
*This additional information is provided to the Chief Operating Decision
Maker. Further analysis by market is not available.
**House of Moves was considered part of the Vicon Group prior to its sale on
15 October 2014.
2016 2015
Adjusted profit/(loss) before tax Adjusting items Group recharges Profit/(loss) before tax Adjusted profit/(loss) before tax Adjusting items Group recharges Profit/(loss) before tax
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Vicon UK 1,544 - 2,360 3,904 2,489 (76) 791 3,204
Vicon USA 4,375 - (3,774) 601 2,769 (5) (1,796) 968
Vicon Group 5,919 - (1,414) 4,505 5,258 (81) (1,005) 4,172
Yotta UK 11 (29) (505) (523) 560 (107) (424) 29
Yotta Mayrise 1,949 (424) (347) 1,178 1,475 (424) (298) 753
Yotta Group 1,960 (453) (852) 655 2,035 (531) (722) 782
Unallocated (2,237) (64) 2,530 229 (2,404) (87) 2,308 (183)
Continuing operations 5,642 (517) 264 5,389 4,889 (699) 581 4,771
OMG Life Group (1,079) (1,673) (264) (3,016) (2,497) (657) (238) (3,392)
House of Moves** - - - - (93) (175) - (268)
2d3 UK - - - - 2,693 (8) (208) 2,477
2d3 USA - - - - (3,819) 10,840 (135) 6,886
2d3 Group - - - - (1,126) 10,832 (343) 9,363
Discontinued operations (1,079) (1,673) (264) (3,016) (3,716) 10,000 (581) 5,703
OMG Group 4,563 (2,190) - 2,373 1,173 9,301 - 10,474
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
2016 2015 2016 2015 2016 2015 2016 2015 2016 2015
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Vicon UK 3,381 3,501 1,044 1,752 10,949 16,262 (3,587) (3,229) 1,002 797
Vicon USA 860 885 17 330 6,342 4,772 (2,042) (1,332) 27 84
Vicon Group 4,241 4,386 1,061 2,082 17,291 21,034 (5,629) (4,561) 1,029 881
Yotta UK 3,742 4,288 361 458 8,706 9,076 (2,133) (2,531) 495 611
Yotta Mayrise 4,094 4,197 350 66 11,211 10,967 (1,884) (1,757) 456 448
Yotta Group 7,836 8,485 711 524 19,917 20,043 (4,017) (4,288) 951 1,059
Unallocated 254 2,091 37 32 6,184 2,498 (1,114) (1,310) 28 21
Continuing operations 12,331 14,962 1,809 2,638 43,392 43,575 (10,760) (10,159) 2,008 1,961
Yotta USA - - - - 32 28 (6) (5) - -
OMG Life Group 35 1,532 - 776 (5,709) (3,864) (120) (520) 1,642 893
2d3 UK - - - 23 - - - - - 3
2d3 USA - - - 18 - - - - - 255
2d3 Group - - - 41 - - - - - 258
Discontinued operations 35 1,532 - 817 (5,677) (3,836) (126) (525) 1,642 1,151
OMG Group 12,366 16,494 1,809 3,455 37,715 39,739 (10,886) (10,684) 3,650 3,112
4. Profit for the year
The profit for the year is stated after charging / (crediting):
2016 2015
£'000 £'000
Loss/(profit) on disposal of property, plant and equipment 9 (71)
Depreciation of property, plant and equipment - owned 478 575
- under hire purchase/finance lease - 82
Amortisation of customer relationships 305 397
Amortisation of intellectual property 126 228
Amortisation of development costs 1,107 1,415
Impairment of intangible fixed assets 1,634 415
Share based payments - equity settled 103 170
Operating lease charges - land and buildings 576 721
Foreign exchange (gain)/loss (552) 41
Grant income receivable (990) (490)
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.
2016 2015
£'000 £'000
Profit before tax - continuing operations 5,389 4,771
Share based payments - equity settled 64 117
Amortisation of intangibles arising on acquisition 424 502
Redundancy costs 29 80
Reapportion Group overheads (264) (581)
Adjusted profit before tax - continuing operations 5,642 4,889
(Loss)/profit before tax - discontinued operations (3,016) 5,703
Share based payments - equity settled 39 53
Amortisation of intangibles arising on acquisition - 124
Impairment of intangible assets 1,634 -
Redundancy costs - 80
Compensation to contract manufacturer and Autographer inventory write off - 540
Profit on disposal of House of Moves and 2d3 Group - (10,797)
Reapportion Group overheads 264 581
Adjusted loss before tax - discontinued operations (1,079) (3,716)
Total adjusted profit before tax - all operations 4,563 1,173
The redundancy costs in the year ended 30 September 2016 are associated with
the restructuring of the Yotta UK business segment and those in the year ended
30 September 2015 are associated with the restructuring of the Yotta UK, Vicon
and OMG Life business segments.
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:
2016 2015
£'000 £'000
United Kingdom corporation tax at 20% (2015: 20.5%) 492 212
Overseas taxation 312 2,041
Adjustments in respect of prior year (275) (155)
Current taxation 529 2,098
Deferred taxation (427) 334
Total taxation expense 102 2,432
Continuing and discontinued operations:
2016 2015
£'000 £'000
Income tax expense from continuing operations 608 361
Income tax credit from discontinued operations excluding gain on sale (526) (589)
82 (228)
Total tax expense:
2016 2015
£'000 £'000
Income tax expense/(credit) excluding tax on sale of discontinued operations 82 (228)
Income tax expense on gain on sale of discontinued operations 20 2,660
102 2,432
At 30 September 2016, the Group had an undiscounted deferred tax asset of
£311,000 (2015: £632,000). The asset comprises principally accelerated
capital allowances 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
17% and 38% in the UK and USA, respectively (2015: 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 17% from 1 April
2020 was substantively enacted on 15 September 2016
The tax assessed for the year is lower than the standard rate of corporation
tax in the UK of 20% (2015: higher than the standard rate of 20.5%).
The differences are explained as follows:
2016 2015
£'000 £'000
Profit on ordinary activities before tax 2,373 10,474
Expected tax income based on the standard rate of 475 2,147
corporation tax in the UK of 20% (2015: 20.5%)
Effect of:
Expenses not deductible for tax purposes (53) 61
Tax gain on sale of discontinued operation in excess of book gain 2 346
Book gain on sale of discontinued operation in excess of tax gain - (1,732)
Unrelieved current year losses - 475
Utilisation of losses brought forward 201 -
Adjustments to tax charge in respect of prior year current tax (275) (155)
Adjustments to tax charge in respect of prior year deferred tax (185) (203)
Higher rates on overseas taxation 250 1,754
Research and development tax credit (308) (320)
Tax deduction in excess of income statement charge 88 6
Effect of rate change (93) 53
Total tax expense 102 2,432
7. Finance income and expense
2016 2015
£'000 £'000
Finance expense - Hire purchase liabilities - (6)
- Bank interest paid - (4)
- (10)
Finance income - Interest income on short term bank deposits 23 30
- Unwinding of discount on contingent consideration 22 10
45 40
8. Earnings/(loss) per share
2016 2015
Earnings/(loss) Weighted average number of shares Per share amount Earnings 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 4,781 120,354 3.96 4,410 114,626 3.85
Dilutive effect of employee share options - 1,717 (0.06) - 2,789 (0.09)
Diluted earnings per share 4,781 122,071 3.90 4,410 117,415 3.76
Discontinued operations
Basic (loss)/earnings per share
(Loss)/earnings attributable to ordinary shareholders (2,510) 120,354 (2.07) 3,632 114,626 3.17
Dilutive effect of employee share options - 1,717 - - 2,789 (0.08)
Diluted (loss)/earnings per share (2,510) 122,071 (2.07) 3,632 117,415 3.09
Total operations
Basic earnings per share
Loss attributable to ordinary shareholders 2,271 120,354 1.89 8,042 114,626 7.02
Dilutive effect of employee share options - 1,717 (0.03) - 2,789 (0.17)
Diluted earnings per share 2,271 122,071 1.86 8,042 117,415 6.85
6.85
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
2016 2015
Equity - ordinary £'000 £'000
Final 2015 paid in 2016 (0.65 pence per share) 784 -
Final 2014 paid in 2015 (0.50 pence per share) - 567
Special paid in 2016 (3.75 pence per share) 4,520 -
Special paid in 2015 (4.50 pence per share) - 5,102
Special paid in 2015 (5.00 pence per share) - 5,872
5,304 11,541
The directors are proposing a final dividend in respect of the financial year
ended 30 September 2016 of 1.00 pence per share (2015: 0.65 pence per share)
which will absorb an estimated £1,213,000 of shareholders' funds. This
dividend will be paid on 9 March 2017 to shareholders who are on the register
of members at close of business on 16 December 2016 subject to approval at the
AGM. These dividends have not been accrued in this financial information.
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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