REG - Vislink PLC - Final Results <Origin Href="QuoteRef">VLK.L</Origin> - Part 2

Pebble Beach SystemsAnnouncement

24/03/2015 07:01

- Part 2: For the preceding part double click  ID:nRSX2451Ia 

             
                                                                                                                                                                  (938)      (162)       
 
 
The Group has incurred rationalisation and redundancy costs of £722,000 in the
year (2013: £nil). 
 
An on-going creditor dispute was also resolved during the year, resulting in a
£169,000 reduction in the payable amount. The agreed revised settlement figure
will be paid in 2015. 
 
In 2014 an on-going contractual dispute was resolved and a final settlement
figure of £167,000 was agreed and paid. In 2013 the Group released a £330,000
provision that was in place relating to a contractual dispute. 
 
There was a £2,000,000 release of deferred consideration owing to the vendors
of Amplifier Technology Ltd during the year as a result of the failure to meet
target revenues (2013: £nil). 
 
The Group incurred costs of £224,000 during the year in relation to the
acquisition of Pebble Beach Systems Ltd and also incurred £46,000 of costs
associated with an aborted acquisition. In 2013 the Group incurred costs of
£93,000 in relation to the acquisition of Amplifier Technology Ltd and £75,000
of costs were incurred in respect of operations in Brazil. 
 
The Group incurred costs of £72,000 in relation to the move to AIM. 
 
5.   FINANCE INCOME - NET 
 
                                     2014£'000  2013 £'000  
 Interest payable on bank borrowing  (169)      (4)         
 Finance costs                       (169)      (4)         
                                                            
 Finance income                      24         19          
 Finance (costs)/income - net        (145)      15          
 
 
Finance income is derived from cash held on deposit. 
 
6.   INCOME TAX EXPENSE 
 
                                        2014£'000  2013£'000  
                                                              
 Current tax                                                  
 UK corporation tax                     585        (8)        
 Foreign tax - current year             74         95         
 Adjustments in respect of prior years  -          (66)       
 Total current tax                      659        21         
                                                              
 Deferred tax                                                 
 UK corporation tax                     112        (144)      
 Foreign tax                            837        (261)      
 Adjustments in respect of prior years  15         -          
 Total deferred tax                     964        (405)      
                                                              
 Total taxation                         1,623      (384)      
 
 
Total taxation 
 
1,623 
 
(384) 
 
From 1st April 2014 the corporation tax rate will be 21 per cent and from 1st
April 2015 will be 20 per cent.  These rates were substantively enacted on 2
July 2013 and hence deferred tax assets and liabilities are calculated at 20
per cent. 
 
Deferred tax has been provided for at the rate of 20 per cent (2013: 20 per
cent). There was not a material impact on the deferred tax charge as a result
of the change in deferred tax rates. 
 
There is no tax impact for the Group associated with the dividend proposed
(note 7). 
 
7.   DIVIDENDS 
 
The directors are proposing a final dividend in respect of the financial year
ending 31 December 2014 of 1.50 pence per share, which will absorb an
estimated £1.8 million of shareholders' funds. It will be paid on 17 July 2015
to shareholders who are on the register of members on 26 June 2015. 
 
8.   EARNINGS PER ORDINARY SHARE 
 
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of ordinary shares
outstanding during the year, excluding those held in the employee share trust
which are treated as cancelled. Earnings per share is calculated by reference
to a weighted average of 117,797,000 ordinary shares in issue during the year
(31 December 2013: 113,070,000). 
 
For diluted earnings per share the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The dilutive shares are those share options granted to employees where
the exercise price is less than the average market price of the company's
ordinary shares during the year. 
 
Adjusted earnings 
 
The directors believe that the adjusted operating profit, adjusted profit
before tax, adjusted earnings and adjusted earnings per share provide
additional useful information on underlying trends to shareholders. These
measures are used by management for internal performance analysis and
incentive compensation arrangements. The term "adjusted" is not a defined term
used under IFRS and may not therefore be comparable with similarly titled
profit measurements reported by other companies. The principal adjustments are
made in respect of the amortisation of acquired intangibles, impairment of
goodwill and non-recurring items and their related tax effects. 
 
The reconciliation between reported and underlying earnings and basic earnings
per share is shown below: 
 
                                                 2014           2013    
                                                 Earnings£'000  Pence   Earnings£'000  Pence   
 Reported earnings per share                     3,744          3.2p    3,477          3.1p    
 Amortisation of acquired intangibles after tax  2,209          1.9p    1,336          1.2p    
 Non-recurring items after tax                   (1,093)        (1.0)p  (124)          (0.1)p  
 Adjusted earnings per share                     4,860          4.1p    4,689          4.2p    
 
 
9.   CASH FLOW FROM OPERATING ACTIVITIES 
 
Net cash flow from operating activities comprises: 
 
                                                      2014£'000  2013£'000  
 Profit for the year                                  5,367      3,093      
 Depreciation of property, plant and equipment        886        790        
 Loss on disposal of property, plant and equipment    -          3          
 Acquisition related costs                            224        93         
 Write back of deferred consideration un-earned       (2,000)    -          
 Amortisation and impairment of development costs     2,092      2,189      
 Amortisation and impairment of acquired intangibles  2,630      1,420      
 Share-based payment expense                          500        361        
 Finance income                                       (24)       (19)       
 Finance costs                                        169        4          
 Increase in inventories                              (1,268)    (1,478)    
 Increase in trade and other receivables              (2,233)    (1,677)    
 Increase in trade and other payables                 1,807      366        
 Decrease in provisions                               (151)      (793)      
 Net cash from operating activities                   7,999      4,352      
 
 
10.  CALLED UP SHARE CAPITAL, SHARE PREMIUM AND CAPITAL REDEMPTION RESERVE 
 
                      Number of shares  '000  Share Capital £'000  Share Premium £'000  Capital redemption reserve£'000  Total  £'000  
 At 1 January 2014    113,902                 2,848                4,900                617                              8,365         
 Share issues         8,701                   218                  1,900                -                                2,118         
 At 31 December 2014  122,603                 3,066                6,800                617                              10,483        
 
 
617 
 
10,483 
 
11.  NET FUNDS 
 
The movements in cash and cash equivalents and borrowings in the year are as
follows: 
 
                                                                        Cash and cash equivalents£'000  Other borrowings£'000  Total net cash£'000  
 At 1 January 2014                                                      3,705                           -                      3,705                
 Cash flow for the year before financing and acquisition of subsidiary  3,187                           -                      3,187                
 Proceeds on issue of shares                                            2,000                           -                      2,000                
 Purchase of subsidiary                                                 (13,092)                        -                      (13,092)             
 Cash acquired from subsidiary                                          6,089                           -                      6,089                
 Movement in borrowings in the year                                     8,000                           (8,000)                -                    
 Dividend paid                                                          (1,473)                         -                      (1,473)              
 Exchange rate adjustments                                              (36)                            -                      (36)                 
 At 31 December 2014                                                    8,380                           (8,000)                380                  
 
 
380 
 
Ends. 
 
This information is provided by RNS
The company news service from the London Stock Exchange