REG-SThree SThree: Final results for the year ended 30 November 2017 <Origin Href="QuoteRef">STHR.L</Origin> - Part 3
29/01/2018 07:05
- Part 3: For the preceding part double click ID:nEQ45cv1Jb
Effects of:
Disallowable items 847 - 847 442
Differing tax rates on overseas earnings 2,725 - 2,725 1,588
Adjustments in respect of prior periods (1,385) - 1,475
(1,385)
Adjustment due to tax rate changes 33 - 33
(41)
Tax losses for which deferred tax asset was 578 - 578
derecognised/(recognised) (868)
Tax expense for the year 11,392 (1,303) 10,089 10,056
Effective tax rate 25.6% 19.3% 26.7% 27.0%
(c) Current and deferred tax movement recognised directly in equity
30 November 30 November
2017 2016
£'000 £'000
Equity-settled share-based payments
Current tax - (26)
Deferred tax (62) 38
(62) 12
The Group expects to receive additional tax deductions in respect of share options currently unexercised. Under IFRS
the Group is required to provide for deferred tax on all unexercised share options. Where the amount of the tax
deduction (or estimated future tax deduction) exceeds the amount of the related cumulative remuneration expense,
this indicates that the tax deduction relates not only to remuneration expense but also to an equity item. In this
situation, the excess of the current or deferred tax should be recognised in equity. At 30 November 2017 a deferred
tax asset of £1.0 million (2016: £0.6 million) has been recognised in respect of these options.
6. Dividends
2017 2016
£'000 £'000
Amounts recognised as distributions to equity holders in the year
Interim dividend of 4.7p (2016: 4.7p) per share (i) 6,052 6,049
Final dividend of 9.3p (2016: 9.3p) per share (ii) 11,942 11,923
17,994 17,972
Amounts proposed as distributions to equity holders
Interim dividend of 4.7p (2016: 4.7p) per share (iii) 6,038 6,052
Final dividend of 9.3p (2016: 9.3p) per share (iv) 12,086 12,002
(i) 2016 interim dividend of 4.7 pence (2015: 4.7 pence) per share was paid on 9 December 2016 to
shareholders on record at 4 November 2016.
(ii) 2016 final dividend of 9.3 pence (2015: 9.3 pence) per share, was paid on 9 June 2017 to
shareholders on record at 5 May 2017.
(iii) 2017 interim dividend of 4.7 pence (2015: 4.7 pence) per share was paid on 8 December 2017 to
shareholders on record at 3 November 2017.
(iv) The Board has proposed a 2017 final dividend of 9.3 pence (2016: 9.3 pence) per share, to be
paid on 8 June 2018 to shareholders on record at 27 April 2018. This proposed final dividend is subject to approval
by shareholders at the Company's next Annual General Meeting on 26 April 2018, and therefore, has not been included
as a liability in these financial statements.
7. Earnings per share
The calculation of the basic and diluted earnings per share ('EPS') is set out below:
Basic EPS is calculated by dividing the earnings attributable to owners of the Company by the weighted average
number of shares in issue during the year excluding shares held as treasury shares and those held in the EBT which
are treated as cancelled.
For diluted EPS, the weighted average number of shares in issue is adjusted to assume conversion of dilutive
potential shares. Potential dilution resulting from tracker shares takes into account profitability of the
underlying tracker businesses and SThree plc's earnings per share. Therefore, the dilutive effect on EPS will vary
in future periods depending on any changes in these factors.
30 November 30 November
2017 2016
£'000 £'000
Earnings
Profit for the year after tax before exceptional items 33,066 27,242
Exceptional items net of tax (5,438) -
Profit for the year attributable to owners of the Company 27,628 27,242
million million
Number of shares
Weighted average number of shares used for basic EPS 128.6 128.3
Dilutive effect of share plans 4.0 3.8
Diluted weighted average number of shares used for diluted EPS 132.6 132.1
30 November 30 November
2017 2016
pence pence
Basic
Basic EPS before exceptional items 25.7 21.2
Impact of exceptional items (4.2) -
Basic EPS after exceptional items 21.5 21.2
Diluted
Diluted EPS before exceptional items 24.9 20.6
Impact of exceptional items (4.1) -
Diluted EPS after exceptional items 20.8 20.6
8. Cash and cash equivalents
30 November 30 November
2017 2016
£'000 £'000
Cash at bank 21,338 15,707
Bank overdraft (3,717) (5,685)
Net cash and cash equivalents per the consolidated statement of cash flow 17,621 10,022
Cash and cash equivalents comprise cash and short-term bank deposits with an original maturity of three months or
less, net of outstanding bank overdrafts. The carrying amount of these assets is approximately equal to their fair
values.
The Group has cash pooling arrangements with legally enforceable rights to set-off cash and overdraft balances.
Where there is an intention to settle on a net basis, cash and overdraft balances relating to the cash pooling
arrangements are reported on a net basis in the statement of financial position. Other bank overdrafts are shown
separately as above and in the statement of financial position.
9. Borrowings
The Group has a committed RCF of £50 million along with an uncommitted £20 million accordion feature in place with
HSBC and Citibank, giving the Group an option to increase its total borrowings under the facility up to £70 million.
The RCF expires in May 2019. The funds borrowed under the facility bear interest at an annual rate of 1.3% (2016:
1.3%) above 3 month LIBOR. The average interest rate paid on the RCF during the year was 1.5% (2016: 1.8%). The
Group also has an uncommitted £5 million overdraft facility with RBS.
At the year end the Group had drawn down £12 million (2016: £nil) on these facilities.
The RCF is subject to certain covenants requiring the Group to maintain financial ratios over interest cover,
leverage and guarantor cover. The Group has been in compliance with these covenants throughout the year.
10. Annual Report and Annual General Meeting
The 2017 Annual Report and Notice of 2017 Annual General Meeting will be posted to shareholders shortly. Copies will
be available on the Company's website www.sthree.com or from the Company Secretary, 8th Floor, City Place House, 55
Basinghall Street, London, EC2V 5DX. The Annual General Meeting of SThree plc is to be held on 26 April 2018.
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ISIN: GB00B0KM9T71
Category Code: ACS
TIDM: STHR
LEI Code: 2138003NEBX5VRP3EX50
Sequence No.: 5145
End of Announcement EQS News Service
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648919 29-Jan-2018
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