REG - SpaceandPeople PLC - Preliminary Results and Proposed Final Dividend <Origin Href="QuoteRef">SAL.L</Origin> - Part 2
29/03/2016 07:07
- Part 2: For the preceding part double click ID:nRSc2642Ta
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
5. Operating profit
The operating profit is stated after charging:
12 months to 12 months to
December '15 December '14
£'000 £'000
Motor vehicle leasing 68 63
Property leases 298 290
Amortisation of intangible assets 16 19
Depreciation of property, plant and equipment 439 461
821 833
Auditor's remuneration:
Fees payable for:
Audit of Company 19 18
Audit of subsidiary undertakings 22 22
Tax services 4 4
Other services 2 7
47 51
Directors' remuneration 534 671
6. Staff costs
The average number of employees in the Group during the period was as
follows:
12 months to 12 months to
December '15 December '14
Executive DirectorsNon-executive Directors 33 33
Administration 32 26
Telesales 64 65
Commercial 24 25
Maintenance 6 7
132 129
12 months to 12 months to
December '15 December '14
£'000 £'000
Wages and salaries 4,208 4,470
Social Security costs 497 524
Pensions 57 42
4,762 5,036
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 previous 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 '15 December '14
£'000 £'000
Finance costs:
Interest received - 36
Interest payable (28) (18)
9. Taxation
12 months to 12 months to
December '15 December '14
£'000 £'000
Current tax expense:
Current tax on profits for the year 117 152
Adjustment for under provision in prior periods 7 (20)
Total current tax 124 132
Foreign tax:
Current tax on foreign income for the period 25 34
Adjustment for under provision in prior periods - -
Total foreign tax 25 34
Deferred tax:
Credit in respect of tax losses (37) -
Charge in respect of temporary timing differences 85 -
Total deferred tax 48 -
Income tax expense as reported in the Income Statement 197 166
The tax assessed for the period is lower than the standard rate of corporation
tax in the UK. The differences are explained below:
12 months to 12 months to
December '15 December '14
£'000 £'000
Profit on ordinary activities before tax 1,061 762
Profit on ordinary activities at the standard rate of corporation tax in
the UK of 20.25% (2014: 21.5%)
Jan - Mar 2014: 23% - 44
Apr - Dec 2014: 21% - 120
Jan - Mar 2015: 21% 56 -
Apr - Dec 2015: 20% 159 -
Tax effect of:
- Prior period adjustment 7 -
- Difference due to foreign taxation rates- Tax losses 12(37) 2-
Income tax expense as reported in the Income Statement 197 166
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 £568k after the incorporation of all
UK head office costs (2014: £4k) which is dealt with in the financial
statements of the parent Company.
11. Dividends
12 months to 12 months to
December '15 December '14
£'000 £'000
Paid during the period 390 800
Recommended final dividend 429 390
Equity - 2.00p per ordinary share proposed and paid for 2014. Recommended
final dividend for 2015 - 2.20p 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 2013 8,225
Additions -
At 31 December 2014 8,225
Additions -
At 31 December 2015 8,225
Accumulated impairment losses
At 31 December 2013 -
Charge for the period -
At 31 December 2014 -
Charge for the period -
At 31 December 2015 -
Net book value
At 31 December 2013 8,225
At 31 December 2014 8,225
At 31 December 2015 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 five 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 2013 284 137 41 462
Additions - - 30 30
At 31 December 2014 284 137 71 492
Additions - - 15 15
At 31 December 2015 284 137 86 507
Amortisation Website Product Patents & Total
development development trademarks
£'000 £'000 £'000 £'000
At 31 December 2013 284 137 34 455
Charge for the period - - 19 19
At 31 December 2014 284 137 53 474
Charge for the period - - 16 16
At 31 December 2015 284 137 69 490
Net book value Website Product Patents & Total
development Development trademarks
£'000 £'000 £'000 £'000
At 31 December 2013 - - 7 7
At 31 December 2014 - - 18 18
At 31 December 2015 - - 17 17
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 2013 2,071 258 443 2,772
Additions 210 - 35 245
At 31 December 2014 2,281 258 478 3,017
Additions 626 - 64 690
At 31 December 2015 2,907 258 542 3,707
Depreciation Plant & Fixture & Computer Total
Equipment Fittings Equipment
£'000 £'000 £'000 £'000
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
Charge for the period 342 13 84 439
At 31 December 2015 1,408 246 428 2,082
Net book value Plant & Fixture & Computer Total
equipment Fittings equipment
£'000 £'000 £'000 £'000
At 31 December 2013 1,346 50 194 1,590
At 31 December 2014 1,215 25 134 1,374
At 31 December 2015 1,499 12 114 1,625
15. Deferred tax
31 December '15 31 December '14
£'000 £'000
Deferred tax liability:Deferred tax liability to be recognised after more than 12 months Deferred tax assets:Deferred tax asset to be recognised after less than 12 months 95 (37) 10 -
Deferred tax liability (net) 58 10
At 1 January 2015Credit in respect of lossesCharge in respect of temporary timing differences on property, plant and equipment 10(37) 85 10- -
At 31 December 2015 58 10
16. Trade and other receivables
31 December '15 31 December '14
£'000 £'000
Trade debtors 3,516 3,864
Other debtors 443 44
Prepayments 246 308
Accrued revenue - 5
Total 4,205 4,221
Amounts falling due after more than one year included above are: 400 -
The maximum exposure to credit risk at the balance sheet date is the carrying
amount of receivables detailed above. The Group does not hold any collateral
as security.
The Directors do not believe that there is a significant concentration of
credit risk within the trade receivables balance. As of 31 December 2015,
trade receivables of £596k (2014: £685k) were past due but not impaired.
The ageing of trade debtors:
Current 0 - 30 Days 31 - 60 Days 61 Days + Total
£'000 £'000 £'000 £'000 £'000
31 December '15 2,920 130 94 372 3,516
31 December '14 3,179 167 127 391 3,864
17. Cash and cash equivalents
31 December '15 31 December '14
£'000 £'000
Cash at bank and on hand 1,723 2,115
1,723 2,115
18. Trade and other payables
31 December '15 31 December '14
£'000 £'000
Trade creditors 628 685
Other creditors 1,470 2,098
Social Security and other taxes 610 613
Accrued expenses 1,342 1,707
Deferred income 456 732
Trade and other payables 4,506 5,835
Corporation tax 18 (170)
Total 4,524 5,665
19. Other borrowings
31 December '15 31 December '14
£'000 £'000
Bank loan:
Less than one year 250 250
Greater than one year 750 250
1,000 500
As at 31 December 2015, SpaceandPeople plc had drawn down £1,000,000 (2014:
£500K) of its agreed bank facility of £2 million (2014: £2 million), £1
million of which expires in January 2016 and the other £1 million expires in
July 2017.
20. Financial instruments and risk management
The Group has no material financial instruments other than cash, current
receivables and liabilities, in both this and the prior period, all of which
arise directly from its operations. The net fair value of its financial assets
and liabilities is the same as their carrying value as detailed in the balance
sheet and related notes.
Credit risk - The Group's credit risk relates to its receivables and is
managed by undertaking regular credit evaluations of its customers.
Liquidity risk - The Group operates a cash-generative business and holds net
funds. The Directors consider the funding structure to be adequate for the
Group's current funding requirements.
Borrowing facilities - The Group has agreed facilities of £2 million, of which
£1 million was utilised at the year end. £750,000 was drawn down from a £1
million facility, which expires in July 2017, at a rate of 2.99% above base
rate. The other £250,000 was drawn down from the other £1 million facility,
which expires in January 2016, at a rate of 3.69% above base rate. Both of
these facilities are secured by an omnibus guarantee and set off agreement,
secured by an unlimited debenture incorporating a bond and floating charge.
These facilities improve the financial flexibility of the Group.
Financial assets - These comprise cash at bank and in hand. All bank deposits
are floating rate.
Financial liabilities - These include short-term creditors and revolving
credit facilities of £2million, of which £1 million was utilised at the year
end. All financial liabilities will be financed from existing cash reserves
and operating cash flows.
Foreign currency risk - The Group is exposed to foreign exchange risk
primarily from Euros due to its German operations and Euro denominated
licensing income as detailed in note 4 Segmental Reporting. The Group monitors
its foreign currency exposure and hedges the position where appropriate. In
addition, the Group has investments in a subsidiary in India.
21. Operating lease commitments
At the period end date, SpaceandPeople plc had outstanding commitments for
future lease payments which fall due as follows:
31 December '15 31 December '14
£'000 £'000
Within 1 year 1,820 2,744
Between 2 and 5 years inclusive 1,239 4,439
22. Called up share capital
Allotted, issued and fully paid 31 December '15 31 December '14
Class Nominal value
Ordinary 1p £ 195,196 195,196
Number 19,519,563 19,519,563
23. Related party transactions
Compensation of key management personnel
Key management personnel of the Group are defined as those persons having
authority and responsibility for the planning, directing and controlling the
activities of the Group, directly or indirectly. Key management of the Group
are therefore considered to be the directors of SpaceandPeople plc. There were
no transactions with the key management, other than their emoluments, which
are set out in the remuneration report.
24. Earnings per share
12 months to 12 months to
31 December '15 31 December '14
Pence per share Pence per share
Basic earnings per share
Before non-recurring costs 4.26p 3.91p
After non-recurring costs 4.26p 2.34p
Diluted earnings per share
Before non-recurring costs 3.89p 3.51p
After non-recurring costs 3.89p 2.10p
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares.
Basic earnings per share
The earnings and weighted average number of ordinary shares used in the
calculation of basic earnings per share are as follows:
12 months to 12 months to
31 December '15 31 December '14
£'000 £'000
Profit after tax for the period attributable to 831 456
owners of the Company
12 months to 12 months to
31 December '15 31 December '14
'000 '000
Weighted average number of ordinary shares 19,520 19,520
for the purposes of basic earnings per share
Diluted earnings per share
The earnings and weighted average number of ordinary shares used in the
calculation of diluted earnings per share are as follows:
12 months to 12 months to
31 December '15 31 December '14
£'000 £'000
Profit after tax for the period attributable to 831 456
owners of the Company
12 months to 12 months to
31 December '15 31 December '14
'000 '000
Weighted average number of ordinary shares 21,386 21,708
for the purposes of diluted earnings per share
The weighted average number of ordinary shares for the purposes of diluted
earnings per share reconciles to the weighted average number of ordinary
shares used in the calculation of basic earnings per share as follows.
12 months to 12 months to
31 December '15 31 December '14
'000 '00
Weighted average number of shares in issue 19,520 19,520
during the period
Weighted average number of ordinary shares 1,866 2,188
used in the calculation of basic earnings per
share deemed to be issued for no
consideration in respect of employee options
Weighted average number of ordinary shares 21,386 21,708
used in the calculation of diluted earnings per
share
25. Share options
The Group has established a share option scheme that senior executives and
certain eligible employees are entitled to participate in at the discretion of
the Board which is advised on such matters by the Remuneration Committee.
In aggregate, share options have been granted under the share option scheme
over 1,000,307 ordinary shares exercisable within the dates and at the
exercise prices shown below, being the market value at the date of the grant.
Date of grant Number Option period Price
14 January 2009 8,000 14 January 2012 - 13 January 2016 50p
1 June 2009 12,307 1 June 2012 - 30 May 2015 65p
12 January 2015 980,000 12 January 2018 - 12 January 2025 47.4p
The movement in the number of options outstanding under the scheme over the
period is as follows:
12 months to 12 months to
31 December '15 31 December '14
Number of options outstanding as at the beginning of the period 1,130,082 2,452,911
Granted 980,000 -
LapsedForfeited (1,109,775)(15,000) (1,322,829)-
Number of options outstanding as at the end of the period 985,307 1,130,082
In total, 985,307 options were outstanding at 31 December 2015 (1,130,082 at
31 December 2014) with a weighted average exercise price of 47.6p (96.5p at 31
December 2014). Of these, 20,307 were exercisable (420,082 at 31 December
2014) with a weighted average exercise price of 59.1p (89.0p at 31 December
2014).
The total share-based payment charge for the year, calculated in accordance
with IFRS2 on share based payments, was £3k (2014: £nil). No value has been
included in the accounts for share options issued prior to 2012. The fair
value of these options was assessed at the date of issue and deemed to such
that no adjustment in the financial statements was required.
26. Save As You Earn Scheme
The Group has established a Save As You Earn ("SAYE") scheme that all UK based
employees are entitled to participate in. The scheme will run for three years
from 1 June 2015 and at the end of the term, participants will have the
opportunity to buy shares in the Company at a price of 46p, which is a 20
percent discount on the closing share price on 2 April 2015.
In aggregate, share options have been granted under the SAYE scheme over
273,515 ordinary shares exercisable within the dates and at the exercise
prices shown below, being the market value at the date of the grant.
Date of grant Number Option period Price
28 April 2015 273,515 1 June 2018 - 30 November 2018 46p
The movement in the number of options outstanding under the scheme over the
period is as follows:
12 months to
31 December '15
Number of options outstanding as at the beginning of the period -
Granted 273,515
Forfeited (15,652)
Number of options outstanding as at the end of the period 257,863
In total, 257,863 options were outstanding at 31 December 2015 (none at 31
December 2014) with an exercise price of 46p (nil at 31 December 2014).
The total share-based payment charge for the year, calculated in accordance
with IFRS2 on share based payments, was £7k (2014: £nil).
This information is provided by RNS
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