REG - Vislink PLC - Interim Results <Origin Href="QuoteRef">VLK.L</Origin> - Part 2
29/10/2014 07:21
- Part 2: For the preceding part double click ID:nRSB5662Qa
other companies. The principal adjustments are
made in respect of the amortisation of acquired intangibles, impairment of
goodwill and non-recurring costs and their related tax effects.
The reconciliation between reported and adjusted earnings and basic earnings
per share for the continuing business is shown below:
Six months to Six months to Year ended
30-Jun-14 30-Jun-13 31-Dec-13
Pence per share Pence per share Pence per share
£000 £000 £000
Reported earnings per share 2,010 1.7p 1,492 1.3p 3,477 3.1p
Amortisation of acquired intangibles after tax 758 0.7p 621 0.5p 1,336 1.2p
Non-recurring costs after tax (1,420) (1.2p) (67) (0.0p) (124) (0.1p)
Adjusted earnings per share 1,348 1.2p 2,046 1.8p 4,689 4.2p
10. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Six months to 30 June 2014 Six months to 30 June 2013 Year ended 31 December 2013
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Property, plant and equipment
Opening net book value as at 1 January 2,430 2,695 2,695
Additions 440 170 473
Acquisitions through business combinations 162 - 124
Disposals - (57) (67)
Depreciation (431) (397) (790)
Exchange adjustment (22) 56 (5)
Closing net book value 2,579 2,467 2,430
Intangible assets
Capitalised development costs
Opening net book value as at 1 January 7,569 5,439 5,439
Additions 1,999 2,010 4,453
Additions through business combinations - - -
Amortisation (800) (1,149) (2,189)
Impairment Charge - - -
Exchange adjustment (161) 234 (134)
Capitalised development costs closing net book value 8,607 6,534 7,569
Goodwill and acquired intangible assets
Opening net book value as at 1 January 25,464 23,237 23,237
Additions 7,844 - -
Additions through business combinations 3,076 - 3,752
Amortisation (906) (656) (1,420)
Exchange adjustment (200) 446 (105)
Goodwill and acquired intangible assets closing net book value 35,278 23,027 25,464
Total closing net book value of intangible assets 43,885 29,561 33,033
11. CASH, BORROWINGS AND LOANS
The movements in cash and cash equivalents (net of overdrafts), borrowings and
loans in the period were as follows:
Net cash and cash equivalents Other borrowings Total net cash
£000 £000 £000
Six months ended 30 June 2014
At 1 January 2014 3,705 - 3,705
Cash flow for the period before financing and acquisition of subsidiary 3,035 - 3,035
Purchase of subsidiary (13,093) - (13,093)
Cash acquired with subsidiary 6,089 6,089
Movement in borrowings in the period 8,000 (8,000) -
Exchange rate adjustments 13 - 13
At 30 June 2014 7,749 (8,000) (251)
Six months ended 30 June 2013
At 1 January 2013 8,131 - 8,131
Cash flow for the period before financing (992) - (992)
Movement in borrowings in the period - - -
Exchange rate adjustments 104 - 104
At 30 June 2013 7,243 - 7,243
Year ended 31 December 2013
At 1 January 2013 8,131 - 8,131
Cash flow for the period before financing and acquisition of subsidiary (1,012) - (1,012)
Purchase of subsidiary (2,093) (2,093)
Cash acquired with subsidiary 62 62
Repayment of borrowings - - -
Dividend paid to shareholders (1,413) - (1,413)
Exchange rate adjustments 30 - 30
At 31 December 2013 3,705 - 3,705
The Group held cash of £7.7m at the period-end and taken together with the
outstanding debt of £8.0m, there was a small net debt position of £0.3m.
12. PROVISIONS FOR OTHER LIABILITIES AND CHARGES
Six months to 30 June 2014 Six months to 30 June 2013 Year ended 31 December 2013
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Warranty provision 340 345 345
Property provision 323 367 359
Rationalisation provision 247 103 -
Other provision - 330 -
910 1,145 704
Amounts due within one year 846 1,040 638
Amounts due after one year 64 105 66
910 1,145 704
Warranty provisions are made in respect of the expected future warranty costs
in certain businesses based on historic actual costs. Warranty periods on
products are generally between one and two years.
The property provision is in respect of vacated leasehold properties acquired
as part of the Gigawave acquisition and represents the estimated future
liabilities associated with the properties. The provision has been reduced as
a result of a recent lease surrender for a vacated property.
Rationalisation provisions are in respect of future liabilities for committed
reorganisation costs at the statement of financial position dates.
The Group has since released the other provision that was in place at 30 June
2013 that represented an on-going dispute with a distributor regarding
contractual obligations. The provision represented the potential liabilities
associated with the costs incurred in resolving the dispute.
13. NOTES TO THE CASH FLOW STATEMENT
Net cash flow from operating activities comprises:
Six months to 30 June 2014 Six months to 30 June 2013 Year ended 31 December 2013
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Profit before tax 2,023 1,419 3,093
Depreciation 431 397 790
(Profit)/loss on disposal of property, plant and equipment - 29 3
Acquisition related costs 227 - 93
Release of deferred consideration no longer payable (2,000) - -
Amortisation and impairment of development costs 800 1,149 2,189
Amortisation of acquired intangibles 906 657 1,420
Share based payment expenses 198 125 361
Finance income from continuing operations - - (19)
Finance costs from continuing operations - - 4
Increase in inventories (1,092) (3,298) (1,478)
Decrease/(increase) in trade and other receivables 1,563 (2,730) (1,676)
Increase in payables 2,344 4,161 365
Increase/(decrease) in provisions 210 (290) (793)
Net cash inflow from operating activities 5,610 1,619 4,352
14. FOREIGN EXCHANGE RATES
The principal exchange rates used by the Group in translating overseas profits
and net assets into GBP are set out in the table below.
Six months to 30 June 2014 Six months to 30 June 2013 Year ended 31 December 2013
(Unaudited) (Unaudited) (Audited)
Average rate for the period
US dollar 1.6690 1.5438 1.5645
Period end rate
US dollar 1.7097 1.5167 1.6528
Independent review report to Vislink plc
Introduction
We have been engaged by the company to review the condensed consolidated
half-year financial information in the half-yearly financial report for the
six months ended 30 June 2014, which comprises the Consolidated Group Income
Statement, Consolidated Statement of Comprehensive Income, Consolidated
Statement of Changes in Shareholders Equity, Consolidated Group Statement of
Financial Position, Consolidated Group Cash Flow Statement and related notes.
We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of
financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the AIM Rules for Companies
which require that the financial information must be presented and prepared in
a form consistent with that which will be adopted in the company's annual
financial statements.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. This report, including the conclusion, has been prepared for and only
for the company for the purpose of the AIM Rules for Companies and for no
other purpose. We do not, in producing this report, accept or assume
responsibility for any other purpose or to any other person to whom this
report is shown or into whose hands it may come save where expressly agreed by
our prior consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2014 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the AIM Rules for Companies.
PricewaterhouseCoopers LLP
Chartered Accountants
2 September 2014
Bristol
Notes:
(a) The maintenance and integrity of the Vislink plc website is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept
no responsibility for any changes that may have occurred to the financial
statements since they were initially presented on the website.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.
This information is provided by RNS
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