REG - Vislink PLC - Interim Results <Origin Href="QuoteRef">VLK.L</Origin> - Part 2
16/09/2015 07:01
- Part 2: For the preceding part double click ID:nRSP1704Za
DIVIDENDS
No interim dividend is proposed for the period. In respect of 2014 there was
no interim dividend and the final dividend of 1.5 pence per share was approved
at the Group's Annual General Meeting on 20 May 2015 and paid on 17 July 2015.
The total cash cost of the dividend was £1.8 million.
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 period, 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 121,844,000 ordinary shares in issue during
the period (30 June 2014: 115,803,000 and 31 December 2014: 117,797,000).
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 period. At 30 June 2015 there were 2,756,000
dilutive share options (30 June 2014: 170,000 and 31 December 2014:
2,453,000). The effect of dilutive shares was not material and therefore there
is no difference between basic earnings per share and diluted earnings per
share.
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 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-15 30-Jun-14 31-Dec-14
Pence per share Pence per share Pence per share
£000 £000 £000
Reported earnings per share (459) (0.4) 2,010 1.7 3,744 3.2
Amortisation of acquired intangibles after tax 1,020 0.8 758 0.7 2,209 1.9
Non-recurring costs after tax 1,382 1.2 (1,420) (1.2) (1,093) (1.0)
Adjusted earnings per share 1,943 1.6 1,348 1.2 4,860 4.1
9. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Six months to 30 June 2015 Six months to 30 June 2014 Year ended 31 December 2014
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Property, plant and equipment
Opening net book value as at 1 January 2,665 2,430 2,430
Additions 359 440 919
Acquisitions through business combinations - 162 162
Disposals (341) - (1)
Depreciation (421) (431) (886)
Exchange adjustment 6 (22) 41
Closing net book value 2,268 2,579 2,665
Intangible assets
Capitalised development costs
Opening net book value as at 1 January 9,441 7,569 7,569
Additions 1,737 1,999 3,647
Amortisation (1,411) (800) (2,092)
Exchange adjustment (37) (161) 317
Capitalised development costs closing net book value 9,730 8,607 9,441
Goodwill and acquired intangible assets
Opening net book value as at 1 January 34,242 25,464 25,464
Additions - 7,844 7,986
Additions through business combinations - 3,076 3,076
Disposals (66) - -
Amortisation (1,210) (906) (2,130)
Impairment charge - - (500)
Exchange adjustment (48) (200) 346
Goodwill and acquired intangible assets closing net book value 32,918 35,278 34,242
Total closing net book value of intangible assets 42,648 43,885 43,683
10. 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 2015
At 1 January 2015 8,380 (8,000) 380
Cash flow for the period before financing (1,558) - (1,558)
Movement in borrowings in the period (600) 600 -
Exchange rate adjustments (42) - (42)
At 30 June 2015 6,180 (7,400) (1,220)
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)
Year ended 31 December 2014
At 1 January 2014 3,705 - 3,705
Cash flow for the period before financing and acquisition of subsidiary 3,188 - 3,188
Purchase of subsidiary (13,093) - (13,093)
Cash acquired with subsidiary 6,089 - 6,089
Repayment of borrowings 8,000 (8,000) -
Dividend paid to shareholders (1,473) - (1,473)
Proceeds on issues of shares 2,000 - 2,000
Exchange rate adjustments (36) - (36)
At 31 December 2014 8,380 (8,000) 380
The Group held cash of £6.2 million at the period-end and taken together with
the outstanding debt of £7.4 million, there was a net debt position of £1.2
million.
11. PROVISIONS FOR OTHER LIABILITIES AND CHARGES
Six months to 30 June 2015 Six months to 30 June 2014 Year ended 31 December 2014
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Warranty provision 269 340 270
Property provision 171 323 288
Rationalisation provision 293 247 -
733 910 558
Amounts due within one year 733 846 280
Amounts due after one year - 64 278
733 910 558
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.
Rationalisation provisions are in respect of future liabilities for committed
reorganisation costs at the statement of financial position dates.
12. NOTES TO THE CASH FLOW STATEMENT
Net cash flow from operating activities comprises:
Six months to 30 June 2015 Six months to 30 June 2014 Year ended 31 December 2014
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
(Loss)/profit before tax (881) 2,023 5,367
Depreciation 421 431 886
(Profit)/loss on disposal of property, plant and equipment (50) - -
Acquisition related costs - 227 224
Release of deferred consideration no longer payable - (2,000) (2,000)
Amortisation and impairment of development costs 1,411 800 2,092
Amortisation of acquired intangibles 1,209 906 2,630
Share based payment expenses 287 198 500
Finance income from continuing operations (4) - (24)
Finance costs from continuing operations 107 - 169
Increase in inventories (1,258) (1,092) (1,268)
Decrease/(increase) in trade and other receivables 712 1,563 (2,233)
(Decrease)/increase in payables (1,301) 2,344 1,807
(Decrease)/increase in provisions 176 210 (151)
Net cash inflow from operating activities 829 5,610 7,999
13. 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 2015 Six months to 30 June 2014 Year ended 31 December 2014
(Unaudited) (Unaudited) (Audited)
Average rate for the period
US dollar 1.5151 1.6690 1.648
Period end rate
US dollar 1.5729 1.7097 1.561
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 2015, 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 2015 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
16 September 2015
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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