- Part 2: For the preceding part double click ID:nRSD9971Ja
_________ _________
(1,064) (1,098)
_________ _________
4,313 (941)
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2017 (continued)
Cash and cash equivalents comprise:
2017 2016
£'000 £'000
Net increase/(decrease) in cash and cash equivalents 4,313 (941)
Cash and cash equivalents at beginning of year (3,404) (2,463)
__________ __________
Cash and cash equivalents at end of year 909 (3,404)
__________ __________
There were no significant non-cash transactions
2017 2016
£'000 £'000
Cash available on demand 909 994
Overdrafts - (4,398)
__________ __________
909 (3,404)
__________ __________
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2017
1. All figures are taken from the 2017 audited annual accounts which were
approved by the directors on 4 July 2017, unless denoted as 'unaudited'.
Comparative figures in the results for the year ended 31 March 2016 have been
taken from the 2016 audited annual accounts other than where represented for
the impact of discontinued operations and adjusted performance metrics as set
out in note 7 and 8.
This financial information is presented in pounds sterling and all values are
rounded to the nearest thousand (£'000) except when otherwise indicated.
The financial information for the year ended 31 March 2017 does not constitute
statutory accounts as defined in section 435 (1) and (2) of the Companies Act
2006.
Whilst this preliminary announcement has been prepared in accordance with
International Financial Reporting Standards (IFRS) and IFRS Interpretations
Committee (IFRIC) interpretations adopted for use by the European Union, with
those parts of the Companies Act 2006 applicable to companies reporting under
these condensed financial statements do not contain sufficient information to
comply with IFRS.
The auditors have reported on these accounts; their reports were unqualified,
did not include a reference to any matter to which the auditors drew attention
by way of emphasis of matter and did not contain a statement under section 498
(2) or (3) of the Companies Act 2006.
Statutory accounts for the year ended 31 March 2016 have been delivered to the
Registrar of Companies and those for the year ended 31 March 2017 will be
delivered to the Registrar of Companies shortly.
Certain statements in this announcement constitute forward-looking statements.
Any statement in this announcement that is not a statement of historical fact
including, without limitation, those regarding the Group's future
expectations, operations, financial performance, financial condition and
business is a forward-looking statement. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially. These risks and uncertainties include, among other factors,
changing economic, financial, business or other market conditions. These and
other factors could adversely affect the outcome and financial effects of the
plans and events described in this announcement and the Group undertakes no
obligation to update its view of such risks and uncertainties or to update the
forward-looking statements contained herein. Nothing in this announcement
should be construed as a profit forecast.
2. ACCOUNTING POLICIES AND CRITICAL ACCOUNTING JUDGEMENTS
The financial information in this preliminary announcement has been prepared
using the recognition and measurement principles of International Accounting
Standards, International Financial Reporting Standards and Interpretations
adopted for use in the European Union (collectively Adopted IFRSs).
The application of these standards and interpretations necessitates the use of
estimates and judgements. This financial information is also prepared on a
going concern basis under the historical cost convention except where fair
value measurement is required by IFRS.
The principal accounting policies used in preparing the preliminary
announcement are those the Group will apply in its financial statement for the
year ended 31 March 2017 and are unchanged from those disclosed in the Group's
Report and Financial Statements for the year ended 31 March 2016.
3. EARNINGS PER SHARE
The earnings per share is based on the following:
2017 2016
£'000 £'000
Adjusted continuing earnings post tax 2,693 2,656
Reported continuing earnings post tax 2,289 2,303
Discontinued earnings post tax (438) 1,865
Adjusted total earnings post tax 2,255 4,521
Reported total earnings post tax 1,851 4,168
__________ __________
Weighted average number of shares 8,426,418 8,345,406
Diluted number of shares 8,426,418 8,474,536
Reported EPS
Basic EPS from continuing operations 27.2p 27.6p
Basic EPS from discontinued operations (5.2p) 22.3p
Basic EPS from profit for the year 22.0p 49.9p
Diluted EPS from continuing operations 27.2p 27.2p
Diluted EPS from discontinued operations (5.2p) 22.0p
Diluted EPS from profit for the year 22.0p 49.2p
Adjusted EPS
Adjusted basic EPS from continuing operations 32.0p 31.8p
Adjusted basic EPS from discontinued operations (5.2p) 22.3p
Adjusted basic EPS from profit for the year 26.8p 51.8p
Adjusted diluted EPS from continuing operations 32.0p 31.3p
Adjusted diluted EPS from discontinued operations (5.2p) 22.0p
Adjusted diluted EPS from profit for the year 26.8p 51.3p
Earnings per ordinary share has been calculated using the weighted average number of shares in issue during the year. The weighted average number of equity shares in issue was 8,426,418 (2016: 8,345,406). The diluted earnings per share is based on 8,426,418 (2016: 8,474,536) ordinary shares which allow for the exercise of all dilutive potential ordinary shares. The adjustments to profit made in calculating the adjusted earnings are set out in note 7.
4. DIVIDENDS
2017 2016
£'000 £'000
Final dividend paid for the prior year of 8p per share (2016: 8p) 680 673
Interim dividend paid of 4p per share (2016: 4p) 340 337
Cancelled dividends on shares held in treasury (4) (5)
__________ __________
1,016 1,005
__________ __________
Final dividend proposed for the year 8p per share (2016: 8p) 677 670
__________ __________
The proposed final dividend has not been accrued for as the dividend will be approved by the shareholders at the annual general meeting
5. SEGMENT INFORMATION
Year ended 31 March 2017 Distributiondivision Manufacturingdivision Headoffice Continuing operations Discontinued operations Total
£'000 £'000 £'000 £'000 £'000 £'000
External revenue 16,479 23,542 - 40,021 - 40,021
_________ _________ _______ _________ _________ _____
Profit/(loss) before tax 1,125 2,526 (957) 2,694 (539) 2,155
Tax expense (229) (371) 195 (405) 101 (304)
_________ _________ _______ _________ _________ _____
Profit after tax 896 2,155 (762) 2,289 (438) 1,851
_________ _________ _______ _________ _________ _____
Balance sheet
Assets 7,090 10,224 5,887 23,201 - 23,201
Liabilities (2,256) (3,997) (306) (6,559) - (6,559)
_________ _________ _______ _________ _________ _____
Net assets 4,834 6,227 5,581 16,642 - 16,642
_________ _________ _______ _________ _________ _____
Other
Capital expenditure
- Tangible fixed assets 348 1,129 - 1,477 - 1,477
- Intangible assets 40 389 - 426 - 426
Depreciation, 153 259 - 412 35 447
Amortisation 19 165 203 387 - 387
Other non-cash expenses - - - - - -
Interest paid 1 41 - 42 - 42
_________ _________ _______ _________ _________ _____
No individual customer contributed more than 10% of the Groups revenue in the
financial year ended 31 March 2017. During the year ended 31 March 2016,
greater than 10% of the Group's Revenue was derived from one customer within
the Manufacturing Division.
5. SEGMENT INFORMATION (continued)
Year ended 31 March 2016 Distributiondivision Manufacturingdivision Headoffice Continuing operations Discontinued operations Total
£'000 £'000 £'000 £'000 £'000 £'000
External revenue 16,628 20,179 - 36,807 7,293 44,100
_________ _________ _______ _________ _________ _____
Profit before tax 1,198 2,539 (1,148) 2,589 1,607 4,196
Tax expense (232) (411) 357 (286) 258 (28)
_________ _________ _______ _________ _________ _____
Profit after tax 966 2,128 (791) 2,303 1,865 4,168
_________ _________ _______ _________ _________ _____
Balance sheet
Assets 7,720 9,103 5,323 22,146 4,496 26,642
Liabilities (2,069) (3,260) (4,884) (10,213) (664) (10,877)
_________ _________ _______ _________ _________ _____
Net assets 5,651 5,843 439 11,933 3,832 15,765
_________ _________ _______ _________ _________ _____
Other
Capital expenditure
- Tangible fixed assets 295 330 - 625 - 625
- Intangible assets 17 19 - 36 - 36
Depreciation 159 247 - 406 - 406
Amortisation 10 33 182 225 - 225
Impairment - - - - 618 618
Other non-cash expenses - - 174 174 - 174
Interest paid 3 109 - 112 - 112
_________ _________ _______ _________ _________ _____
External revenue bylocation of customer Total assets bylocation of assets Net tangible capitalexpenditure by locationof assets
2017 2016 2017 2016 2017 2016
£'000 £'000 £'000 £'000 £'000 £'000
United Kingdom 32,199 30,277 23,201 26,642 1,477 625
Rest of Europe 5,061 3,267 - - - -
Asia 1,511 845 - - - -
North America 900 2,243 - - - -
Other 350 175 - - - -
_________ _________ _________ _________ _________ _________
40,021 36,807 23,201 26,642 1,477 625
_________ _________ _________ _________ _________ _________
All the above relate to continuing operations.The discontinued operations revenue reported above all related to customers located in the United Kingdom.
6. TAX EXPENSE
2017 2016
£'000 £'000
Analysis of continuing and discontinuing total tax expense
Total tax charge from continuing operations 405 286
Total tax credit from discontinued operations (101) (258)
_________ _________
304 28
_________ _________
Current tax expense
UK corporation tax on profits or losses for the year 307 165
Adjustment in respect of prior periods - -
_________ _________
307 165
Deferred tax (credit) (3) (137)
_________ _________
Total tax charge 304 28
_________ _________
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK applied to profits for the year are as follows
2017 2016
£'000 £'000
Profit before tax including discontinued operations 2,155 4,196
_________ _________
Expected tax charge based on the standard rate of corporation tax in the UK of 20% (2016 - 20%) 431 839
Effect of:
Expenses not deductible for tax purposes 24 52
Deductible expenses not charged in Group accounts (47) (7)
Difference between depreciation for the year and capital allowances 12 18
Tax relief on exercise of share options at less than market value (15) (158)
Enhanced relief on research and development expenditure (94) (674)
Deferred tax credit arising on change of tax rate (15) (18)
Amortisation of intangibles 8 (4)
Other - (20)
_________ _________
Total tax charge 304 28
_________ _________
See note 8 for further analysis of continuing and discontinued tax charge
7. ADJUSTMENTS TO PROFIT
The group's results are reported after a number of imputed non-cash charges
and non-recurring items. Therefore we have provided additional information to
aid an understanding of the group's performance. We have presented an adjusted
profit metric adjusting for the following items:
· Non-cash accounting charges arising from share based payments and the
amortisation of acquisition related intangibles.
· One off cash costs relating to the acquisition of Creasefield Limited
and the re-organisation of the manufacturing division.
2017£'000 2016£'000
Acquisition and re-organisation costs in cost of sales 175 -
Acquisition and re-organisation costs in sales, general and administration expenses 61 -
Total acquisition and re-organisation costs 236 -
Amortisation of acquisition intangibles 203 182
Share based payments - 174
Taxation effect (35) (3)
Total 404 353
2017£'000 2016£'000
Reported gross profit from continuing operations 12,027 11,459
Adjusted gross profit from continuing operations 12,202 11,459
Reported gross margin percentage from continuing operations 30.1% 31.1%
Adjusted gross margin percentage from continuing operations 30.5% 31.1%
Reported operating profit from continuing operations 2,736 2,701
Adjusted operating profit from continuing operations 3,175 3,057
Reported operating margin percentage from continuing operations 6.8% 7.3%
Adjusted operating margin percentage from continuing operations 7.9% 8.3%
Reported profit before tax from continuing operations 2,694 2,589
Adjusted profit before tax from continuing operations 3,133 2,945
Reported profit after tax from continuing operations 2,289 2,303
Adjusted profit after tax from continuing operations 2,693 2,656
8. DISCONTINUED OPERATIONS
The table below reconciles the discontinued operations to the previously
reported income statement.
2017 2016
Continuing operations£'000 Discontinued operations£'000 Total£'000 Continuing operations £'000 Discontinued operations£'000 Total£'000
Revenue 40,021 - 40,021 36,807 7,293 44,100
Cost of sales (27,994) - (27,994) (25,348) (4,724) (30,072)
Gross profit 12,027 - 12,027 11,459 2,569 14,028
Sales general & administration expenses (9,291) (539) (9,830) (8,758) (962) (9,720)
Operating profit 2,736 (539) 2,197 2,701 1,607 4,308
Finance costs (42) - (42) (112) - (112)
Profit before tax 2,694 (539) 2,155 2,589 1,607 4,196
Tax expense (405) 101 (304) (286) 258 (28)
Profit after tax 2,289 (438) 1,851 2,303 1,865 4,168
Cash flows from discontinued operations are as follows:
2017 2016
Continuing operations£'000 Discontinued operations£'000 Total£'000 Continuing operations £'000 Discontinued operations£'000 Total£'000
Operating cash flows 5,824 3,328 9,152 3,542 (1,720) 1,822
Investing cash flows (3,775) - (3,775) (1,559) (106) (1,665)
Financing cash flows (1,064) - (1,064) (1,098) - (1,098)
9. The Annual Report will be sent to shareholders shortly and made
available to the public at the registered office of the Company at 2
Ravensbank Business Park, Hedera Rd, Redditch, B98 9EY and will also be
available to download on the Company's website www.solidstateplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange