REG - Rosenblatt Group PLC - Unaudited Interim Results

RBG HoldingsAnnouncement

18/09/2018 07:05

RNS Number : 0393B
Rosenblatt Group PLC
18 September 2018
 


18 September 2018
 
Rosenblatt Group Plc
("Rosenblatt" or the "Group" or the "Company")
 
Unaudited Interim Results for the period ended 30 June 2018
 
Rosenblatt Group plc (AIM:RBGP), the professional legal services company, is pleased to announce its unaudited results for the eight-week period ended 30 June 2018.   
 
Financial Highlights:
 
·     Revenue of £3.0 million (2017: £2.6 million***)
·     Adjusted EBITDA of £1.0 million* (2017: £0.9 million***),
·     Adjusted profit before tax of £0.95 million** (2017: £0.80 million***)
·     Strong balance sheet with net assets of £32.7 million 
·     Cash and cash equivalents of £11.8 million
 
* Adjusted EBITDA is defined as earnings before interest, tax, share-based payment expense, non-operating exceptional costs, depreciation and amortisation
 
** Adjusted profit before tax is defined as earnings before tax, share-based payment expense and non-operating exceptional costs
 
*** To provide a relative comparison on trading, reference is made to 2/12 of the income statement (i.e. two months of trading) from the prior year of Rosenblatt Solicitors, the business and certain of the assets of which were acquired by the Company on 8 May 2018 by the Company, that was incorporated on the 6 February 2018.
 
Operational Highlights:
 
·     Group was successfully admitted to AIM on 8 May 2018, following a placing of £43 million
·     New litigation funding subsidiary launched today - Rosenblatt Litigation Funding Ltd
 
 
Nicola Foulston, CEO, Rosenblatt Group plc, commented: "Our maiden results show that Rosenblatt has made a strong start to life as a public company. Our current caseload and pipeline of new business remain healthy and consistent with what we expected at the time of our IPO in May.
 
"We are progressing with the strategy we set out at IPO to deliver long-term value to shareholders. This includes using the proceeds to underwrite more of Rosenblatt's litigation portfolio by increasing the number of cases we are undertaking on either a conditional fee or damages-based agreement basis.
 
"To enable this, we have set up a separate subsidiary, Rosenblatt Litigation Funding Ltd, with £2 million of the proceeds of the float. This will give us the capability to take on more cases where there is a third-party cost element, thereby retaining the funding margin otherwise paid to an external funder. We are delighted to have already secured our first case, which is a Damages-Based Agreement, with more in the pipeline.
 
"Looking ahead, the market for legal services is stable, despite a cautious UK business environment, with strong demand for litigation services, dispute resolution and third-party funding. The Group remains confident that this will continue to be the case, regardless of any uncertainty caused by Brexit."
 
 
 
 
Enquiries:
 




Rosenblatt Group plc
Nicola Foulston, CEO
 


 Via Redleaf
 




Cenkos Securities plc (Nominated Adviser and Broker)


Tel: 020 7397 8900




Stephen Keys/ Nick Wells
 


 




Redleaf (for media enquiries)
Robin Tozer


Tel: 020 3757 6867; rosenblatt@redleafpr.com




Elisabeth Cowell


 




 
 
About Rosenblatt Group plc
Rosenblatt Group plc is a professional legal services company, which includes one of the UK's leading dispute resolution practices. It provides a range of legal services to its diversified client base, which includes companies, banks, entrepreneurs and individuals. Complementing this is the Group's increasingly international footprint, advising on complex cross-jurisdictional cases in China, Israel, America and India. Rosenblatt's practice areas cover dispute resolution, corporate, banking and finance, insolvency and financial restructuring, construction and projects, employment, financial services, IP/technology/media, real estate, regulatory and tax.
 
 
 
Chief Executive's Statement
 
 
Overview
Our maiden results as a public company, show that the Company has consolidated the achievements made in 2017 and has continued to trade strongly under its new structure. We expect this to continue through the remainder of 2018 as we complete the integration of the business of Rosenblatt Solicitors into the Group.
 
Revenue for the period was £3.0 million (2017: £2.6 million***) with our advisory services across our Dispute Resolution, Real Estate and Employment practices delivering double-digit growth compared to the previous year. Adjusted EBITDA of £1.0 million (2017: £0.9 million***), equivalent to 33.6 per cent of total revenue, is consistent with the high margins we aim to deliver.
 
The Group has a strong balance sheet, with net assets of £32.7 million, and cash and cash equivalents of £11.8 million, which will support our growth plans.
 
Divisional performance
Our main practise areas, which are focused on contentious law, namely Dispute Resolution and Employment have performed well. In total, these are up 53.5% on 2017*** with strong gross margins of 73% and 66% respectively.
 
In line with our expectations, the Corporate division which is focused on commercial transactions has not performed as strongly as last year. Like other sub-sectors of the legal market, it has been impacted by the cautious business environment in part caused by Brexit uncertainty. However, there is a good pipeline of new business in both this and our real estate division which has performed well.
 
Litigation Funding
The Company is pleased to announce that, ahead of the timetable set out at Admission, it has established Rosenblatt Litigation Funding Ltd ("RLFL"), a separate subsidiary to fund external litigation cost. Initially, £2.0 million of the proceeds of the float will be used by RLFL and will enable the Group to take on more cases where there is a third-party cost element and retain the funding margin that would otherwise be paid to an external funder.
 
The Company is delighted that RLFL has secured its first case under a Damages-Based Agreement and is in the process of on-boarding two further cases.
 
Board Changes and personnel
On 12 July 2018, non-Executive Chairman, Brook Land resigned and was succeeded by non-Executive Director, Stephen Davidson, while on 31 August 2018, Finance Director, Patrick Firebrace stood down for personal reasons. The Group has appointed an experienced interim Finance Director, Robert Parker until a permanent replacement is named.  
 
On 3 September 2018, Victoria Hull joined the Board as a non-Executive Director. She is a highly experienced director and has had an extensive legal career. Victoria is currently a non-executive director of Ultra Electronics plc and is a former Executive Director and General Counsel of Invensys plc and Telewest Communications plc. The Group is currently seeking an additional non-Executive Director to join the Board.
 
Equity ownership is now a crucial part of the Company's culture and the Directors have been encouraged by the enhanced levels of productivity and focus across the Company since the IPO.
 
Outlook
In the Company's Admission Document, the Directors stated that the business, which at the time was part of Rosenblatt Solicitors, had traded strongly since the beginning of the year. For the first three months of 2018, Rosenblatt Solicitors, the business and certain assets of which were acquired by the Company, delivered turnover of £3.5 million****. Since Admission, the Directors have been pleased with the progress that has continued to be made, both in terms of the trading of the core business and the implementation of management's strategy.
 
The overall outlook for the broader legal sector is mixed due to the uncertainty caused by Brexit, which is impacting general business confidence. However, we believe that there is increasing demand for litigation services and the funding to support such actions which provide significant opportunities for the Group. We remain confident that Rosenblatt is ideally placed to capitalise on the cases and commercial opportunities that have already come to us since IPO and which we expect to continue as our profile and track record are enhanced further as a public company. 
 
The Company has been encouraged by the level of inbound enquiries it has received regarding potential acquisition opportunities, whether they be at the individual, team or firm level. The Board will pursue those that meet its strategic and valuation criteria. The Directors are confident about the outcome for the rest of the year.
 
 
****taken from the unaudited management accounts of Rosenblatt Solicitors for the three months ended 31 March 2018.
 
Nicola Foulston
Chief Executive Officer
Rosenblatt Group plc
18 September 2018
 
 
 
Finance Director's Review
 
Revenue for the 8-week period to 30 June 2018 was £3.0 million (2017: £2.6 million***), an increase of 15.4% over a comparison of last year. Advisory activity services across our Dispute Resolution, Real Estate and Employment lines have delivered double-digit revenue growth while, as expected, Corporate activity was down on the comparative period due to uncertainty caused by Brexit impacting business confidence.
 
Adjusted EBITDA* for the 8 weeks was £1.0 million (2017: £0.9 million***) representing 33.6% of total income, demonstrating a maintenance of a healthy margin as revenue grows.
 
Operating costs adjusted for exceptional costs relating to the IPO were £2.1 million (2017: £1.7 million***), including a £0.3 million increase in personnel costs, the majority of which arose from new recruitment and PLC management costs.
 
The loss before tax for the Period of £0.02 million includes £1.0 million of costs related to the IPO, resulting in a loss after tax of £0.016 million. Adjusted Profit before Tax** was £1.0 million (2017: £0.8 million***). This has been achieved through continuing tight control of Group operating expenses as the business continues to expand.
 
The average number of employees during the period was 70, of which five were Directors. Personnel costs were £1.4 million (2017: £1.1 million***). 
 
Balance sheet, cash flow and financing
 
The net proceeds of the Placing received by the Company was £31.8 million. The balance of the proceeds, having acquired the business and assets of Rosenblatt Solicitors, was £11.8 million, with approximately £5.0 to £7.0 million intended to be used for the in-house funding of litigation and working capital; and approximately £5.0 to £7.0 million for acquisitions of complementary businesses, investment in IT and AI systems.
 
The Group has a strong balance sheet with net assets of £32.7 million of which cash and cash equivalents was £11.8 million at 30 June 2018. 
 
Collection of debts and the lock up of work in progress ("WIP") remains a key focus for the Group, with total lock up (Debtor and WIP days) being 68 days at the end of the period, an improvement over the average for 2017. This will be a continued focus in the second half of the year.  
 
 
Robert Parker
Interim Finance Director
18 September 2018
 
  
 
 
Consolidated statement of profit and loss and other comprehensive income

for the period from 6th February to 30 June 2018




 


 


 


Unaudited Period for the 8 weeks to 30th June

2018


 




 


Note


 


£


 




 


 


 


 


 




Revenue


4


 


                3,043,908


 




 


 


 


 


 




Personnel costs


 


 


             (1,362,926)


 




Depreciation and amortisation


 


 


                  (72,934)


 




Other operating expenses


 


 


             (1,631,435)


 




 


 


 


 


 




 


 


 


 


 




Operating profit


 


 


                (23,387)


 




 


 


 


 


 




 


 


 


 


 




Adjusted EBITDA


 


 


                1,021,491


 




 


 


 


 


 




 


 


 


 


 




Depreciation and amortisation


 


 


                  (72,934)


 




 


 


 


 


 




Non-recurring charges


 


 


 


 




Admission Costs


 


 


                (971,944)


 




 


 


 


 


 




 


 


 


 


 




Financial income


 


 


                       3,260


 




Financial expenses


 


 


                    (1,663)


 




 


 


 


 


 




 


 


 


 


 




Net financing (expense) / income


 


 


                       1,598


 




 


 


 


 


 




Loss before tax


 


 


                (21,790)


 




 


 


 


 


 




Taxation


 


 


                       6,154


 




 


 


 


 


 




Loss for the period after taxation


 


 


                (15,636)


 




 


 


 


 


 




Statutory Earnings per share


 


 


 


 




Basic and diluted earnings per ordinary shares


  5


 


(0.02)


 




Basic and diluted earnings after non-recurring items per ordinary shares


 5


 


                       1.19p


 




 


 


 


 


 




The results for the periods presented above are derived from continuing operations.


 




There were no elements of other comprehensive income for the financial period other than those included in the income statement and therefore no statement of comprehensive income has been prepared.


 




Consolidated statement of financial position at 30 June 2018
 




 


 


Unaudited at
30 June

2018




 


Note


£




Non-current assets


 


 




Property, plant and equipment


 


                 
        283,579




Intangible assets & goodwill


6


                     17,737,610




 


 


 




 


 


 




 Non-current assets


 


                     18,021,189




 


 


 




 


 


 




Current assets


 


 




Trade and other receivables


 


                       5,204,330




Cash and cash equivalents


 


                     11,791,978




 


 


 




 


 


 




 


 


 




Current assets


 


                     16,996,308




 


 


 




 


 


 




Total assets


 


                   35,017,497




 


 


 




 


 


 




Non-current liabilities


 


 




Deferred tax liabilities


 


                        (168,193)




 


 


 




 


 


 




Non-current liabilities


 


                        (168,193)




 


 


 




Current liabilities


 


 




Trade and other payables


 


                     (2,191,802)




Current tax liabilities


 


                              4,249




 


 


 




 


 


 




Current liabilities


 


                     (2,187,553)




 


 


 




 


 


 




Total liabilities


 


                  (2,355,746)




 


 


 




NET ASSETS


 


                   32,661,751




 
EQUITY


 


 




 


 


 




Share Capital


 


                          160,184




Share Premium


 


                     32,517,203




Retained Earnings


 


                          (15,636)




Total Equity


 


                   32,661,751



 
 
 
 
 
 
 



 
Consolidated cashflow statement for the period from 6 February 2018 to 30 June 2018
 




 
 


Unaudited Period for the
8 weeks to
30 June 2018 




Operating activities


 




Loss for the period after tax


           (15,636)




 


 




Adjustments for:


 




Depreciation


              16,656




Amortisation of intangible assets


              56,278




Financial income


             (3,260)




Financial expense


                1,663




Admission costs relating to IPO


            971,944




 


 




 


         1,027,645




(Increase) in trade and other receivables


      (2,635,966)




Increase in trade and other payables


         1,693,693




 


 




 


 




Cash generated from operations


              85,372




Interest paid


                     -  




 


 




Net cash from operating activities


            85,372




 


 




 


 




Cashflows from investing activities


 




Purchase of tangible fixed assets


                (435)




Sale of tangible fixed assets


                     -  




Acquisition of trade and assets of Rosenblatt solicitors


    (20,000,000)




Interest received


                3,260




Interest paid


             (1,663)




 


 




 


 




Net cash from investing activities


 (19,998,838)




 


 




 


 




Cashflows from financing activities


 




Issuing of new shares


       31,705,444




 


 




 


 




Net cash from financing activities


    31,705,444




 


 




 


 




Increase in cash and cash equivalents


       11,791,978




 


 




Cash and cash equivalents at the beginning of the year


                     -  




 


 




Cash and cash equivalents
at the end of the year


    11,791,978




 


 



 
 
 



 
Consolidated statement of changes in equity for period ended 30 June 2018
 
 
 




 


 


Share Capital


Share Premium


Retained Earnings


Total Equity




At 6 February 2018


 


0.002


-


-


0.002




Comprehensive income;


 


 


 


 


 




Loss for the year


 


-


-


(15,636)


(15,636)




 


 


 


 


 


 




Transactions with owners recognised directly in equity


 


 


 


 


 




 


 


 


 


 


 




Issue of shares


 


160,184


34,926,216


 


35,086,400




Share issue costs


 


-


(2,409,013)


 


(2,409,013)




 


 


 


 


 


 




 


 


 


 


 


 




Balance at 30 June 2018


 


160,184


32,517,203


(15,636)


32,661,751




 


 


 


 


 


 




 
 
 
 
 
Notes for the period from 6 February to 30 June 2018
1.   STATUTORY INFORMATION
Rosenblatt Group Plc and its sole subsidiary, Rosenblatt Limited, are limited companies based at 9-13 St Andrew Street, London, EC4A 3AF.
 
2.   ACCOUNTING POLICIES                                                          
Basis of preparation and significant accounting policies
These interim unaudited financial statements for the period from incorporation of Rosenblatt Group Plc on 6 February 2018 to 30 June 2018 have been prepared in accordance with the accounting policies set out in the Admission Document of the Group dated 8th May 2018.
 
The recognition and measurement requirements of all International Financial Reporting Standards ('IFRSs'), International Accounting Standards ('IAS') and interpretations currently endorsed by the International Accounting Standards Board ('IASB') and its committees as adopted by the EU and as required to be adopted by AIM listed companies have been applied. 
 
The financial information contained in this interim report does not constitute statutory accounts for the period ended 30 June 2018. The business was Incorporated on the 6th February 2018 and admitted to AIM on the 8th May 2018 when it commenced trading.
 
The condensed unaudited financial statements for the period to 30 June 2018 have not been audited or reviewed by auditors pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.
 
The accounting policies set out below have been applied consistently to the period presented in this financial information.
 
Judgements made by the directors in the application of these accounting policies that have a significant effect on the financial information and estimates with a significant risk of material adjustment in the next year are discussed further in note 2 ("Accounting Estimates and Judgements").
 
Business Combinations
The Group applies the acquisition method of accounting to account for business combinations in accordance with IFRS 3, 'Business Combinations'. The consideration paid for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred at the date of acquisition. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. The excess of the consideration transferred over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill. All transaction related costs are expensed in the period they are incurred as operating expenses. If the consideration is lower than the fair value of the net assets of the subsidiary acquired, the difference is recognised in the income statement.
 
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised in accordance with IAS 39 in the income statement.
 
 
 
Going concern
These interim accounts are prepared on a going concern basis as the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.  On 8 May 2018 the Group was admitted to AIM and acquired, through its subsidiary, Rosenblatt Limited, the trade and certain assets of Rosenblatt Solicitors. Rosenblatt Limited, and the Group, are cash generative on an underlying basis, with a strong trading performance since the acquisition. 
 
Accounting estimates and judgements
Revenue from service contracts
Where fees are contractually able to be rendered by reference to time charged at agreed rates, the revenue is recognised to the extent that it is not considered likely to be reversed. 
Where revenue is subject to contingent fee arrangements, the Group estimates the amount of variable consideration to which it will be entitled and constrains the revenue recognised to the amount considered highly probable that there will be no significant reversal of.  Due to the nature of the work being performed, this typically means that contingent revenues are not recognised until such time as the outcome of the matter being worked on is certain.  Factors the Group considers when determining whether revenue should be constrained are whether:
 
i.    The amount of consideration receivable is highly susceptible to factors outside the Group's influence.
ii.    The uncertainty is not expected to be resolved for a long time.
iii.   The Group has limited previous experience (or limited other evidence) with similar contracts.
iv.   The range of possible consideration amounts is broad with a large number of possible outcomes.
 
Different views being determined for the amount of revenue to be constrained in relation to each contingent fee arrangement may result in a different value being determined for revenue and also a different carrying value being determined for unbilled amounts for client work.
 
In calculating revenue from fixed price contracts, the Group makes certain estimates as to the stage of completion of those contracts.  In doing so, the Group estimates the remaining time and external costs to be incurred in completing contracts and the clients' willingness to pay for the services provided.  A different assessment of the outturn of the contract may result in a different value being determined for the revenue and also a different carrying value being determined for unbilled amounts for client work.
 
Trade and other receivables
Provision levels in relation to trade and other receivables are determined after consideration of the likelihood of the clients to pay the amounts considered due and hence an estimation of expected credit losses that may arise.  A different assessment of the recoverability of either balance with reference to either the ability or willingness of the client to pay, may result in different values being determined.
 
When preparing the financial statements, management makes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.
 
 
 
 
Significant management judgements
IFRS 15 'Revenue from Contracts with Customers'
IFRS 15 'Revenue from Contracts with Customers' On 1 January 2018, IFRS 15 replaces the existing revenue recognition accounting standards - IAS 18 Revenue' and IAS 11 'Construction Contracts'. This standard introduces a new revenue recognition model that recognises revenue either at a point in time or over time. The model features a contract based five-step analysis of transactions to determine whether, how much and when revenue is recognised; this includes the matching of stand-alone prices for services provided to the satisfaction of performance obligations.
 
Under IFRS 15, revenue must be accounted for at the individual contract level. Therefore, the contracts will be disaggregated, and the assessment of revenue will depend on the performance obligations under the contract. The Group considers that there are typically two revenue contract types used in performing professional services advice, being non-contingent and contingent contract types. Non-contingent work is typically recognised at a fixed value or based upon the value of time incurred to complete the work. It is recognised over the duration of the contract. Contingent work is typically recognised once pre-agreed stages of the contracts performance are reached or concluded as a result of an event linked to each work type performance. Contingent work can contain a profit premium mark up as a result of the risks associated with offering this type of contractual arrangement to clients. Management believe that the performance of the Group's legal and complementary services can be categorised within these two category types. The group only recognises revenues that are contracted.
 
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised us based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilised. In addition, significant judgement is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions.
 
Estimation uncertainty
Useful lives of depreciable assets
Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of certain software and IT equipment.
 
Business combinations
Management uses valuation techniques when determining the fair values of certain assets and liabilities acquired in a business combination.
 
 
 
3.   Acquisitions and disposals                                                                                
Acquisition of Rosenblatt Partnership           
On the 8th May 2018, the Group acquired the trade and specific assets and liabilities of Rosenblatt Partnership. The acquisition was made in line with the business strategy to acquire legal services businesses and Rosenblatt is an established business in our target market.
 




Amount settled in cash


 


 


       20,000,000




 


 


 




Property, plant and equipment


 


            299,800




Brand Value


 


 


 


            750,000




Customer contracts


 


 


            200,111




Deferred Tax


 


 


 


          (170,098)




 


 


 


 


 


 




Total non-current assets


 


 


         1,079,813




Trade and other receivables


 


 


         2,315,367




Total current assets


 


 


         2,315,367




 


 


 


 


 


 




Trade and other payables


 


 


          (238,956)




Total Current liabilities


 


 


          (238,956)




 


 


 


 


 


 




Identifiable net assets


 


 


         3,156,224




 
Goodwill on acquisition


 


 


       16,843,776




 


 


 


 


 


 




Net Cash outflow on acquisition


 


    20,000,000.0



 
 
 
 
 
 
 
 
 



The details of the business combination are as follows:
 
The acquisition of the trade, certain assets and liabilities was settled with cash amounting to £20,000,000. The fair value of the acquired assets is deemed to be equal to that of the book value.           
 
All receivables acquired are expected to be collected in full.
 
The fair value of the WIP was calculated by assessing the terms of each individual contract in accordance with IFRS 15.
 
 
 
4.   OPERATING SEGMENTS
The Chief Operating Decision Makers ("CODM") are the Board of directors of Rosenblatt Group Plc and its subsidiary, Rosenblatt Limited.   The Group has the following four strategic business groups, which are its reportable segments. 
 
These business groups offer different services and are reported separately because of the different specialisms from the legal teams in those business groups.
 
The following summary describes the operations of each reportable segment:




Reportable segment


Operations




Real Estate


Provision of legal advice in respect of construction, planning, real estate and residential property development services. These revenue streams are often time and materials or fixed fee arrangements, with a minority-based success fee.
 




Employment   


Provision of legal advice in respect of employment and pension services. These revenue streams are often time and materials or fixed fee arrangements with a minority-based success fee.
 




Corporate


Provision of legal advice in respect of corporate, family, private client and taxation services.  These revenue streams are often time and materials or fixed fee arrangements with a minority-based success fee.
 




Dispute Resolution


Provision of legal advice in respect of commercial dispute resolution. The dispute resolution revenue stream is often long-term projects with a significant element of reward weighted to a successful outcome.




 




Segment revenue:


 




 
 
Dispute Resolution


2018 (£)
 
2,228,894




Corporate


372,187




Real Estate


336,024




Employment


106,803
 




 


3,043,908




 
 
 
 
 
 




 


 


 


 


 




Segment contribution:


 


 




 




 


 


 


 


 Real Estate


 Employment


 Corporate


 Dispute Resolution


 Total




 


 


 


 


 £


 £


 £


 £


 £


 




Period ended 30 June 2018


 


 


 


 


 


 


 




Segment revenue


 


 


     336,024


           106,803


     372,187


   2,228,894


    3,043,908


 




 


 


 


 


 


 


 


 


 


 




Segment contribution


 


     186,819


             71,254


       57,620


   1,627,403


    1,943,096


 




Costs not allocated to segments


               -  


                     -  


               -  


                -  


 


 




Other operating income


 


               -  


                     -  


               -  


                -  


           3,260


 




Depreciation and amortisation


               -  


                     -  


               -  


                -  


       (72,933)


 




Personnel costs


 


 


               -  


                     -  


               -  


                -  


     (262,113)


 




Other operating expense


 


               -  


                     -  


               -  


                -  


     (588,156)


 




 Net financial costs


 


 


               -  


                     -  


               -  


                -  


         (1,663)


 




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 




Adjusted Profit for the period after taxation


               -  


                     -  


               -  


                -  


   
   1,021,491
 


 




 


 


 


 


 


 


 


 


 


 



 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
 
 
5.   EARNINGS PER SHARE




 


 


 


2018




 


 


 


Number




 


Weighted average number of ordinary shares in issue, being weighted average number of shares for calculating basic earnings per share


 


       80,092,106




 


 


 


 




 


 


 


£




 


Loss for the period and basic earnings attributable to ordinary equity shareholders


 


            (15,636)




 


 


 


 




 


Admission Costs


 


            971,944




 


Underlying earnings before non-underlying items


 


            956,308




 


 


 


 




 


 


 


 




 


Earnings per share is calculated as follows:


 


Pence




 


 
Basic and diluted earnings per ordinary share


 


(0.02)




 


Basic and diluted earnings per ordinary share after non-recurring items


 


                1.19p




 
 
 

 




 


6.   INTANGIBLES


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


Cost


 


 


 


 Goodwill


 Customer Contracts


 Brand


 Total




 


As at 6 February 2018


 


 


 


 


 




 


Acquired through business combination


    16,843,776


      200,111


      750,000


 17,793,887




 


Adjustments in the period


 


 


 


 


 




 


Disposals


 


 


                  -  


                -  


                -  


                -  




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


As at 30 June 2018


 


 


    16,843,776


      200,111


      750,000


 17,793,887




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


Accumulated Amortisation


 


 


 


 


 




 


As at 6 February 2018


 


 


                  -  


                -  


                -  


                -  




 


Charge for period


 


 


                  -  


        50,028


          6,250


        56,278




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


As at 30 June 2018


 


 


                  -  


        50,028


          6,250


        56,278




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


Net book value


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


As at 2 February 2018


 


                  -  


                -  


                -  


                -  




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 


As at 30 June 2018


 


 


    16,843,776


      150,083


      743,750


 17,737,609




 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 




 
Details of the Intangibles are provided in Note 3 Acquisitions

 
 
These financial statements were approved by the directors on 18th September 2018 and were signed and authorised for issue on their behalf by:
             
Nicola Foulston        
Chief Executive Officer      
             
                         
Company registered number:  11189598
 
 
 
 
 
 




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