REG - RM PLC - Interim Results <Origin Href="QuoteRef">RM.L</Origin> - Part 2
04/07/2016 07:10
- Part 2: For the preceding part double click ID:nRSD0613Da
6 months ended 31 May 2015 RM Resources RM Results RM Education Corporate Services Exited Businesses Total
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 30,574 10,640 36,516 - 2,076 79,806
Adjusted profit/(loss) from operations 4,468 1,610 2,571 (1,756) 55 6,948
Adjusted investment income 180
Adjusted finance costs (782)
Adjusted profit before tax 6,346
Adjustments (see note 1) 2,875
Profit before tax 9,221
Year ended 30 November 2015 RM Resources RM Results RM Education Corporate Services Exited Businesses Total
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 63,543 30,725 80,243 - 3,717 178,228
Adjusted profit/(loss) from operations 11,107 5,554 5,494 (4,140) 184 18,199
Investment income 409
Adjusted finance costs (1,510)
Adjusted profit before tax 17,098
Adjustments (see note 1) 2,137
Profit before tax 19,235
Segmental assets
RM Resources RM Results RM Education Corporate Services Exited Businesses Total
At 31 May 2016 £000 £000 £000 £000 £000 £000
Segmental 34,444 5,662 15,949 3,362 - 59,417
Other 39,505
Total assets 98,922
RMResources RM Results RM Education Corporate Services Exited Businesses Total
At 31 May 2015 £000 £000 £000 £000 £000 £000
Segmental 34,553 6,067 17,422 409 1,416 59,867
Other 53,286
Total assets 113,153
RMResources RM Results RM Education Corporate Services Exited Businesses Total
At 30 November 2015 £000 £000 £000 £000 £000 £000
Segmental 32,962 7,732 16,539 700 1,162 59,095
Other 55,826
Total assets 114,921
Other non-segmented assets includes tax assets, cash and short-term deposits and other non division-specific assets.
4. Tax
Corporation tax for the interim period is charged at the expected effective tax rate for the financial year ending 30 November 2016, based upon adjusted profit as explained within note 1. The charge incorporates both current and deferred taxation:
6 months ended 31 May 2016 6 months ended 31 May 2015 Year ended 30 November 2015
Adjusted Adjustments Total Adjusted Adjustments Total Adjusted Adjustments Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Profit before tax 6,532 (531) 6,001 6,346 2,875 9,221 17,098 2,137 19,235
Tax charge (1,372) (9) (1,381) (1,488) (375) (1,863) (3,984) (289) (4,273)
Effective tax rate 21.0% -1.7% 23.0% 23.4% 13.0% 20.2% 23.3% 13.5% 22.2%
5. Earnings per ordinary share
6 months ended 31 May 2016 6 months ended 31 May 2015 Year ended 30 November 2015
Profit after tax Weighted average number of shares Pence per share Profit after tax Weighted average number of shares Pence per share Profit after tax Weighted average number of shares Pence per share
£000 000 £000 000 £000 000
Basic earnings per ordinary share:
Basic earnings 4,620 80,954 5.7 7,358 80,913 9.1 14,962 80,954 18.5
Adjustments (see note 1) 540 - 0.7 (2,500) - (3.1) (1,848) - (2.3)
Adjusted basic earnings 5,160 80,954 6.4 4,858 80,913 6.0 13,114 80,954 16.2
Diluted earnings per ordinary share:
Basic earnings 4,620 80,954 5.7 7,358 80,913 9.1 14,962 80,954 18.5
Effect of dilutive potential ordinary shares: share-based payment awards - 4,245 (0.3) - 3,010 (0.3) - 3,080 (0.7)
Diluted earnings per ordinary share 4,620 85,199 5.4 7,358 83,923 8.8 14,962 84,034 17.8
Adjustments (see note 1) 540 - (2,500) - (1,848) -
Adjusted diluted earnings 5,160 85,199 6.1 4,858 83,923 5.8 13,114 84,034 15.6
6. Dividends
Amounts recognised as distributions to equity holders were:
6 months ended 6 months ended Year ended
31 May 2016 31 May 2015 30 November
2015
£000 £000 £000
Final dividend for the year ended 30 November 2015 - 3.80p per share (2014: 3.04p) 3,079 2,451 2,451
Interim dividend for the year ended 30 November 2015 - 1.20p per share - - 973
3,079 2,451 3,424
The proposed interim dividend of 1.50p per share was approved by the Board on 4 July 2016. The anticipated cost of £1,214,000 has not been included as a liability at 31 May 2016.
7. Cash and short-term deposits
31 May 2016 31 May 2015 30 November 2015
£000 £000 £000
Cash and cash equivalents 26,118 37,103 42,320
Short-term deposits 6,000 6,000 6,000
Cash and short-term deposits 32,118 43,103 48,320
8. Long-term contracts
31 May 2016 31 May 2015 30 November 2015
Note £000 £000 £000
Amounts due from contract customers included in trade and other receivables 9 1 83 138
Amounts due to contract customers included in trade and other payables 10 (21,664) (29,245) (25,509)
(21,663) (29,162) (25,371)
9. Trade and other receivables
31 May 2016 31 May 2015 30 November 2015
£000 £000 £000
Current
Financial assets
Trade receivables 18,319 17,264 17,303
Long-term contract balances 1 83 138
Other receivables 1,796 826 1,048
Derivative financial instruments - 340 138
Accrued income 762 2,155 1,489
20,878 20,668 20,116
Non-financial assets
Prepayments 4,937 3,938 5,476
25,815 24,606 25,592
Non-current
Financial assets
Other receivables 1,166 1,172 1,168
10. Trade and other payables
31 May 2016 31 May 2015 30 November 2015
£000 £000 £000
Current
Financial liabilities
Trade payables 11,707 9,748 11,518
Other payables 315 1,053 761
Derivative financial instruments - 26 5
Accruals 8,813 12,507 12,525
Obligations under finance leases - 106 40
20,835 23,440 24,849
Non-financial liabilities
Other taxation and social security 4,006 4,059 4,010
Long-term contract balances 21,664 29,245 25,509
Deferred income 10,214 12,144 10,606
35,884 45,448 40,125
56,719 68,888 64,974
Non-current
Non-financial liabilities
Deferred income:
- due after one year but within two years 422 667 472
- due after two years but within five years 268 296 190
690 963 662
11. Provisions
Onerous lease and dilapidations Employee-related restructuring Other Total
£000 £000 £000 £000
At 1 December 2015 3,579 184 1,178 4,941
Utilisation of provisions (306) (94) (381) (781)
Release of provisions (150) - (58) (208)
Increase in provisions - - 90 90
Unwind of discount 38 - - 38
At 31 May 2016 3,161 90 829 4,080
12. Defined Benefit Pension scheme
In the half-years ended 31 May 2016 and 31 May 2015 the financial position of
the Group's Defined Benefit Pension Scheme has been rolled forward from the
respective prior period end. The roll forward includes updating for actual
investment returns for the periods; market derived discount rates on
liabilities; and market derived inflation assumptions. Mortality assumptions
have been held in line with those applied at 30 November 2015 of the preceding
financial year.
The last triennial valuation at 31 May 2015 was used as the basis for the 30
November 2015 IAS 19 valuation and the roll-forward to 31 May 2016.
As at 31 May 2015, the triennial valuation for statutory funding purposes
showed a deficit of £41.8 million (31 May 2012: £53.5 million). The Group
agreed with the Scheme Trustees to repay this amount via deficit catch up
payments of £4.0 million in December 2015 and £3.6 million per annum until 30
September 2024. In addition the Group pays the administration costs of the
scheme including the Payment Protection Fund levy. In the half-year to 31 May
2016 total payments of £6.0 million were made under this arrangement.
In addition to the £4.0 million of catch up payments in December 2015, a
further £4.0 million contribution was paid in December 2015 into an escrow
account established in March 2014, the use of which within the Scheme is
required to be agreed by RM Education Limited and the Scheme Trustee. As at 31
May 2016 £7.0 million remained unutilised in an escrow account and has been
included within the calculation of the Scheme assets under IAS 19.
The Scheme is closed to future accrual of benefits.
13. Related party transactions
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation.
The Group encourages its Directors and employees to be Governors, Trustees or
equivalent of educational establishments. The Group trades with these
establishments in the normal course of its business.
Responsibility statement of the directors in respect of the interim financial
statements
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the EU;
· the interim management report includes a fair review of the information
required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
of important events that have occurred during the first six months of the
financial period and their impact on the condensed set of financial
statements; and a description of the principal risks and uncertainties for the
remaining six months of the period; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial period and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
By order of the Board,
Neil MartinChief Financial Officer
4 July 2016
INDEPENDENT REVIEW REPORT TO RM PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31 May
2016 which comprises the Condensed Consolidated Income Statement, Condensed
Consolidated Statement of Comprehensive Income, Condensed Consolidated Balance
Sheet, Condensed Consolidated Cash Flow Statement, Condensed Consolidated
Statement of Changes in Equity and the related explanatory 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.
This report is made solely to the Company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work,
for this report, or for the conclusions we have reached.
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 DTR of the UK FCA.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this half-yearly financial report has been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU.
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.
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 UK. 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 31 May 2016 is not prepared, in all
material respects, in accordance with IAS 34 as adopted by the EU and the DTR
of the UK FCA.
John Bennett
For and on behalf of KPMG LLP
Chartered Accountants
Arlington Business Park, Theale
Reading RG7 4SD
4 July 2016
This information is provided by RNS
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