REG - SpaceandPeople PLC - Preliminary Results and Proposed Final Dividend <Origin Href="QuoteRef">SAL.L</Origin> - Part 2
23/03/2015 07:00
- Part 2: For the preceding part double click ID:nRSW1032Ia
UK Germany UK Germany Office
for 12 months to £'000 £'000 £'000 £'000 £'000 £'000 £'000
31 December '14
Continuing operations 3,603 2,507 3,277 2,988 - 3,071 15,446
revenue
Cost of sales - - (2,148) (1,651) - (2,040) (5,839)
Administrative expenses (2,438) (2,335) (883) (1,110) (1,183) (747) (8,696)
Other revenue - 24 - 190 - 10 224
Non recurring costs (214) (27) (150) - - - (391)
Segment operating profit 951 169 96 417 (1,183) 294 744
/ (loss)
Finance income 36 - - - - - 36
Finance costs (16) - (2) - - - (18)
Segment profit / (loss) 971 169 94 417 (1,183) 294 762
before taxation
Segment assets and Promotion Promotion Retail Retail Other Group
liabilities UK Germany UK Germany
as at 31 December '14 £'000 £'000 £'000 £'000 £'000 £'000
Total segment assets 5,558 2,786 4,869 1,681 1,059 15,953
Total segment liabilities (2,540) (1,132) (1,138) (671) (694) (6,175)
Total net assets 3,018 1,654 3,731 1,010 365 9,778
Segment revenues and Promotion Promotion Retail Retail Head Other Group
results UK Germany UK Germany Office
for 12 months to £'000 £'000 £'000 £'000 £'000 £'000 £'000
31 December '13
Continuing operations 3,566 3,106 4,489 2,994 - 412 14,567
revenue
Cost of sales - - (2,542) (1,312) - (169) (4,023)
Administrative expenses (2,104) (2,365) (931) (1,166) (1,402) (619) (8,587)
Other revenue - 111 - 202 - 9 322
Segment operating profit 1,462 852 1,016 718 (1,402) (367) 2,279
/ (loss)
Finance Income - - 215 - - - 215
Finance costs - - (55) - - - (55)
Segment profit / (loss) 1,462 852 1,176 718 (1,402) (367) 2,439
before taxation
Segment assets and Promotion Promotion Retail Retail Other Group
liabilities UK Germany UK Germany
as at 31 December '13 £'000 £'000 £'000 £'000 £'000 £'000
Total segment assets 5,753 3,049 5,445 2,140 660 17,047
Total segment liabilities (1,625) (1,248) (1,997) (1,557) (610) (7,037)
Total net assets 4,128 1,801 3,448 583 50 10,010
5. Operating profit
The operating profit is stated after charging:
12 months to 12 months to
December '14 December '13
£'000 £'000
Motor vehicle leasing 63 53
Property leases 290 287
Amortisation of intangible assets 19 14
Depreciation of property, plant and equipment 461 364
833 718
Auditor's remuneration:
Fees payable for:
Audit of Company 18 18
Audit of subsidiary undertakings 22 16
Tax services 4 4
Other services 7 9
51 47
Directors' remuneration 671 666
6. Staff costs
The average number of employees in the Group during the period was as
follows:
12 months to 12 months to
December '14 December '13
Executive Directors 6 6
Administration 26 27
Telesales 65 70
Commercial 25 27
Maintenance 7 9
129 139
12 months to 12 months to
December '14 December '13
£'000 £'000
Wages and salaries 4,470 4,354
Social Security costs 524 551
Pensions 42 26
5,036 4,931
Details of Directors' emoluments, including details of share option schemes,
are given in the remuneration report. These disclosures form part of the
audited financial statements of the Group.
7. Non-recurring costs
During the period, the Group took steps to reduce costs and streamline
overheads. As a result, non-recurring costs of £391,000 were incurred. This
was as a result of redundancy costs (£230,000) and other costs (£11,000). The
Group also made provision for possible retrospective costs in relation to UK
centres (£150,000).
8. Finance income and costs
12 months to 12 months to
December '14 December '13
£'000 £'000
Finance costs:
Interest received 36 215
Interest payable (18) (55)
Interest received in 2013 included the refund of interest previously paid on
interest hedging products and the associated interest on overpayments.
9. Taxation
12 months to 12 months to
December '14 December '13
£'000 £'000
UK corporation tax:
Corporation tax 152 674
Adjustment in respect of prior period (20) 170
Foreign tax:
Current tax on foreign income for the period 34 -
Adjustment in respect of prior period - (196)
Income tax expense as reported in the Income Statement 166 648
The tax assessed for the period is higher than the standard rate of
corporation tax in the UK. The differences are explained below:
12 months to 12 months to
December '14 December '13
£'000 £'000
Profit on ordinary activities before tax 762 2,439
Profit on ordinary activities at the standard rate of corporation tax in
the UK of 21.5% (2013: 23.25%)
Jan - Mar 2013: 24% 144
Apr - Dec 2013: 23% 423
Jan - Mar 2014: 23% 44
Apr - Dec 2014: 21% 120
Tax effect of:
- Expenses not deductible for tax purposes 81
- Difference due to foreign taxation rates 2 -
Income tax expense as reported in the Income Statement 166 648
10. Profit for the period
The Company has taken advantage of the exemption allowed under Section 408 of
the Companies Act 2006 and has not presented its own Income Statement in these
financial statements. The Group profit for the period includes a Company
profit after tax and before dividends of £4,452 after the incorporation of all
UK head office costs (2013: £1,697,837) which is dealt with in the financial
statements of the parent Company.
Company profit in 2013 includes licence fee recharges back to both German
companies during the period for the years 2012 and 2013.
11. Dividends
12 months to 12 months to
December '14 December '13
£'000 £'000
Paid during the period 800 681
Recommended final dividend 390 800
Equity - 4.10p per ordinary share proposed and paid for 2013. Recommended
final dividend for 2014 - 2.00p per ordinary share.
The recommended final dividend is subject to approval by shareholders at the
Annual General Meeting and has not been included as a liability in the
financial statements.
12. Goodwill
Cost £'000
At 31 December 2012 8,225
Additions -
At 31 December 2013 8,225
Additions -
At 31 December 2014 8,225
Accumulated impairment losses
At 31 December 2012 -
Charge for the period -
At 31 December 2013 -
Charge for the period -
At 31 December 2014 -
Net book value
At 31 December 2012 8,225
At 31 December 2013 8,225
At 31 December 2014 8,225
Goodwill acquired in a business combination is allocated at acquisition to the
cash-generating units (CGUs) that are expected to benefit from that business
combination. The Directors consider that the businesses of Retail Profile
Holdings Limited and SpaceandPeople India Pvt Limited are identifiable CGUs
and the carrying amount of Goodwill is allocated against these CGUs. No
amortisation of the carrying value has been occurred at the financial
statement review date. Goodwill for Retail Profile Holdings Limited remains
unchanged at £7,981,000 and goodwill for SpaceandPeople India Pvt Limited
remains unchanged at £244,000.
The recoverable amounts of the cash generating units are determined on value
in use calculations which use cash flow projections based on financial budgets
approved by the Board covering a 5 year period followed by a terminal factor
at a discount rate of 6% per annum. Cash flow projections during the budget
period are based on an average growth in EBITDA which the Directors consider
to be very conservative given the plans for the businesses and the potential
increased returns. As a result of the sensitivity analysis carried out, the
Directors believe that any reasonable possible change in the key assumptions
on which the recoverable amounts are based would not cause the aggregate
carrying amounts to exceed the aggregate recoverable amounts of the cash
generating units and that cash flows from these units will continue in line
with expectations for the foreseeable future.
13. Other intangible assets
Cost Website Product Patents & Total
development development trademarks
£'000 £'000 £'000 £'000
At 31 December 2012 284 137 40 461
Additions - - 1 1
At 31 December 2013 284 137 41 462
Additions - - 30 30
At 31 December 2014 284 137 71 492
Amortisation Website Product Patents & Total
development development trademarks
£'000 £'000 £'000 £'000
At 31 December 2012 284 137 20 441
Charge for the period - - 14 14
At 31 December 2013 284 137 34 455
Charge for the period - - 19 19
At 31 December 2014 284 137 53 474
Net book value Website Product Patents & Total
development development trademarks
£'000 £'000 £'000 £'000
At 31 December 2012 - - 20 20
At 31 December 2013 - - 7 7
At 31 December 2014 - - 18 18
14. Property, plant and equipment
The Group movement in property, plant & equipment assets was:
Cost Plant & Fixture & Computer Total
equipment fittings equipment
£'000 £'000 £'000 £'000
At 31 December 2012 1,645 255 280 2,180
Additions 426 3 163 592
At 31 December 2013 2,071 258 443 2,772
Additions 210 - 35 245
At 31 December 2014 2,281 258 478 3,017
Depreciation Plant & Fixture & Computer Total
equipment fittings equipment
£'000 £'000 £'000 £'000
At 31 December 2012 478 161 179 818
Charge for the period 247 47 70 364
At 31 December 2013 725 208 249 1,182
Charge for the period 341 25 95 461
At 31 December 2014 1,066 233 344 1,643
Net book value Plant & Fixture & Computer Total
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