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REG - Solid State PLC - Final Results <Origin Href="QuoteRef">SOLI.L</Origin> - Part 2

- 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

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