REG - Telecom Plus PLC - Final Results <Origin Href="QuoteRef">TEP.L</Origin> - Part 2
14/06/2016 07:05
- Part 2: For the preceding part double click ID:nRSN0649Ba
earnings
from the level we achieved this year should be reflected in a corresponding
rise in the level of distributions to shareholders.
Share Incentive Scheme Charges
Operating profit is stated after share incentive scheme charges of £2.5m
(2015: credits of £1.0m). These relate to an accounting charge under IFRS 2
Share Based Payments ('IFRS 2') and arose principally as a result of the
increase in the Company's share price over the year.
As a result of the relative size of share incentive scheme charges/credits as
a proportion of our pre-tax profits, we are separately disclosing this amount
within the Consolidated Statement of Comprehensive Income for the period (and
excluding these charges from our calculation of adjusted profits and earnings)
so that the underlying performance of the business can be clearly identified.
Our current adjusted earnings per share have also therefore been adjusted to
eliminate these share incentive scheme charges.
Taxation
A full analysis of the taxation charge for the year is set out in note 4 to
the financial statements in the Annual Report. The tax charge for the year is
£8.9m (2015: £9.8m).
The effective tax rate for the year was 21.9% (2015: 23.2%).
Nick Schoenfeld
Chief Financial Officer
13 June 2016
Principal Risks and Uncertainties
Background
The Group faces various risk factors, both internal and external, which could
have a material impact on long-term performance. However, the Group's
underlying business model is considered relatively low-risk, with no need for
management to take any disproportionate risks in order to preserve or generate
shareholder value.
The Group continues to develop and operate a consistent and systematic risk
management process, which involves risk ranking, prioritisation and subsequent
evaluation, with a view to ensuring all significant risks have been
identified, prioritised and (where possible) eliminated, and that systems of
control are in place to manage any remaining risks.
A formal document is prepared by the executive directors and senior management
team on a regular basis detailing the key risks faced by the Group and the
operational controls in place to mitigate those risks; this document is then
reviewed by the Audit Committee. No new principal risks have been identified
during the year, and save as set out below, nor has the magnitude of any risks
previously identified significantly changed during the year.
Business model
The principal risks outlined below should be viewed in the context of the
Group's business model as a reseller of utility services (gas, electricity,
fixed line telephony, mobile telephony and broadband) under the Utility
Warehouse and TML brands. As a reseller, the Group does not own any of the
network infrastructure required to deliver these services to its membership
base. This means that while the Group is heavily reliant on third party
providers, it is insulated from all the direct risks associated with owning
and/or operating such capital intensive infrastructure itself.
The Group's services are promoted using 'word of mouth' by a large network of
independent Partners, who are paid solely on a commission basis. This means
that the Group has minimal fixed costs associated with acquiring new Members.
The principal specific risks arising from the Group's business model, and the
measures taken to mitigate those risks, are set out below.
Reputational risk
The Group's reputation amongst its Members, suppliers and Partners is believed
to be fundamental to the future success of the Group. Failure to meet
expectations in terms of the services provided by the Group, the way the Group
does business or in the Group's financial performance could have a material
negative impact on the Group's performance.
In relation to the service provided to its membership base, reputational risk
is principally mitigated through the Group's recruitment processes, a focus on
closely monitoring staff performance, including the use of direct feedback
surveys from Members (Net Promoter Score), and through the provision of
rigorous staff training.
Responsibility for maintaining effective relationships with suppliers and
Partners rests primarily with the appropriate member of the Group's senior
management team with responsibility for the relevant area. Any material
changes to supplier agreements and Partner commission arrangements which could
impact the Group's relationships are generally negotiated by the executive
Directors and ultimately approved by the full Board.
Information technology risk
The Group is dependent on its proprietary billing and membership management
software for the successful operation of its business model. This software is
developed and maintained in accordance with the changing needs of the business
by a team of highly skilled, generally long-standing, motivated and
experienced individuals. The Group relies on this software and any failure in
its operation could negatively impact service to Members and potentially be
damaging to the Group's brand. During the year the Group recruited a new
highly experienced Chief Technology Officer in order to strengthen the
existing IT team.
All significant changes which are made to the billing and membership
management software are tested as extensively as reasonably practicable before
launch and are ultimately approved by the Chief Technology Officer and Billing
departments in consultation with the Chief Executive as appropriate.
Back-ups of both the software and underlying billing and membership data are
made on a regular basis and securely stored off-site. The Group also maintains
a disaster recovery facility in a warm standby state in the event of a failure
of the main system, designed to ensure that a near-seamless service to Members
can be maintained.
The Group has full strategic control over the source code behind its billing
and membership management system, thereby removing any risk of future software
development not being able to meet the precise requirements of the Group.
Data security risk
The Group processes sensitive personal and commercial data during the course
of its business. The Group looks to protect customer and corporate
information and data and to keep its infrastructure secure. A significant
breach of cyber security could result in the Group facing prosecution and
fines, loss of commercially sensitive information, financial losses from fraud
and theft, lost productivity from not being able to process orders and
invoices, and unplanned costs to restore and improve the Group's security.
This could damage the Group's brand which might take an extended period of
time to rebuild. Ultimately, individuals' welfare could be put at risk in the
event that the Group was not able to provide services or personal data was
misappropriated. The Group uses high specification firewalling, network
segmentation, and multifaceted network and endpoint anti-viral mitigation
systems; external consultants are also used to conduct penetration testing of
the Group's internal and external IT infrastructure.
Legislative and regulatory risk
The Group is subject to varying laws and regulations, including possible
adverse effects from European regulatory intervention. The energy markets in
the UK and Continental Europe are subject to comprehensive operating
requirements as defined by the relevant sector regulators and/or government
departments. Amendments to the regulatory regime could have an impact on the
Group's ability to achieve its financial goals and any failure to comply may
result in the Group being fined and lead to reputational damage which could
impact the Group's brand. Furthermore, the Group is obliged to comply with
retail supply procedures, amendments to which could have an impact on
operating costs.
The Group is a licenced gas and electricity supplier, and therefore has a
direct regulatory relationship with Ofgem. If the Group fails to comply with
its licence obligations, it could be subject to fines or to the removal of its
respective licences.
Proposed regulatory changes such as the new requirements in relation to smart
energy meters (with the potential for additional costs if existing meters must
be replaced prior to the end of their planned lives) and social tariffs, and
changes to the current decommissioning regime, could all have a potentially
significant impact on the sector, although such additional costs are not
expected to affect the net margins earned by energy suppliers in the longer
term (as any such extra costs are likely to be reflected in higher retail
charges).
In general, the majority of the Group's services are supplied into highly
regulated markets, and this could restrict the operational flexibility of the
Group's business. In order to mitigate this risk, the Group seeks to maintain
appropriate relations with both Ofgem and Ofcom (the UK regulators for the
energy and communications markets respectively), the Department for Energy and
Climate Change ('DECC'), and the Financial Conduct Authority ('FCA'). The
Group engages with officials from all these organisations on a periodic basis
to ensure they are aware of the Group's views when they are consulting on
proposed regulatory changes or if there are competition issues the Group needs
to raise with them.
It should be noted that the regulatory environment for the various markets in
which the Group operates is generally focussed on promoting competition; it
therefore seems reasonable to expect that most potential changes will broadly
be beneficial to the Group, given the Group's relatively small size compared
to the former monopoly incumbents with whom it competes, although these
changes, and their actual impact, will always remain uncertain.
Political and consumer concern over energy prices and fuel poverty may lead to
further reviews of the energy market which could result in further consumer
protection legislation being introduced through energy supply licences. The
Government could also choose to introduce adverse measures such as a windfall
tax on the Group or price controls for certain customer segments. In
addition, political and regulatory developments affecting the energy and
telecoms markets within which the Group operates may have a material adverse
effect on the Group's business, results of operations and overall financial
condition.
Financing risk
The Group has debt service obligations which may place operating and financial
restrictions on the Group. This debt could have adverse consequences insofar
as it: (a) requires the Group to dedicate a proportion of its cash flows from
operations to fund payments in respect of the debt, thereby reducing the
flexibility of the Group to utilise its cash to invest in and/or grow the
business; (b) increases the Group's vulnerability to adverse general economic
and/or industry conditions; (c) may limit the Group's flexibility in planning
for, or reacting to, changes in its business or the industry in which it
operates; (d) may limit the Group's ability to raise additional debt in the
long term; and (e) could restrict the Group from making larger strategic
acquisitions or exploiting business opportunities.
Each of these prospective adverse consequences (or a combination of some or
all of them) could result in the potential growth of the Group being at a
slower rate than may otherwise be achieved.
Fraud and bad debt risk
The Group has a universal supply obligation in relation to the provision of
energy to domestic customers. This means that although the Group is entitled
to request a reasonable deposit from potential new Members who are not
considered creditworthy, the Group is obliged to supply domestic energy to
everyone who submits a properly completed application form. Where Members
subsequently fail to pay for the energy they have used ('Delinquent Members'),
there is likely to be a considerable delay before the Group is able to control
its exposure to future bad debt from them by either installing a pre-payment
meter or disconnecting their supply, and the costs associated with preventing
such Delinquent Members from increasing their indebtedness are not always
fully recovered.
Fraud and bad debt within the telephony industry may arise from Members using
the services, or being provided with a mobile handset, without intending to
pay their supplier. The amounts involved are generally relatively small as the
Group has sophisticated call traffic monitoring systems to identify material
occurrences of usage fraud. The Group is able to immediately eliminate any
further usage bad debt exposure by disconnecting any telephony service that
demonstrates a suspicious usage profile, or falls into arrears on payments.
More generally, the Group is also exposed to payment card fraud, where Members
use stolen cards to obtain credit (e.g. on their CashBack card) or goods (e.g.
Smartphones and Tablets) from the Group; the Group regularly reviews and
refines its fraud protection systems to reduce its potential exposure to such
risks.
Wholesale prices risk
The Group does not own or operate any utility network infrastructure itself,
choosing instead to purchase the capacity needed from third parties. The
advantage of this approach is that the Group is protected from technological
risk, capacity risk or the risk of obsolescence, as it can purchase the amount
of each service required to meet its Members' needs.
Whilst there is a theoretical risk that in some of the areas in which the
Group operates it may be unable to secure access to the necessary
infrastructure on commercially attractive terms, in practice the pricing of
access to such infrastructure is either regulated (as in the energy market) or
subject to significant competitive pressures (as in telephony and broadband).
The profile of the Group's Members, the significant quantities of each service
they consume in aggregate, and our clearly differentiated route to market has
historically proven attractive to infrastructure owners, who compete
aggressively to secure a share of the Group's growing business.
The supply of energy has different risks associated with it. The wholesale
price can be extremely volatile, and Member demand can be subject to
considerable short term fluctuations depending on the weather. The Group has a
long-standing supply relationship with Npower under which the latter assumes
the substantive risks and rewards of hedging and buying energy for the Group's
Members, and where the price paid by the Group is set by reference to the
average of the standard variable tariffs charged by the 'Big 6' to their
domestic customers less an agreed discount; this may not be competitive
against the wholesale prices paid by new and/or other independent suppliers.
However, if the Group did not have the benefit of this long term supply
agreement it would be exposed to the pricing risk of securing access to the
necessary energy on the open market and the costs of balancing.
Competitive risk
The Group operates in highly competitive markets and significant service
innovations or increased price competition could impact future profit margins.
In order to maintain its competitive position, there is a consistent focus on
ways of improving operational efficiency. New service innovations are
monitored closely by senior management and the Group is generally able to
respond within an acceptable timeframe by offering any new services using the
infrastructure of its existing suppliers. The Group offers a unique
multi-utility proposition. The increasing proportion of Members who are
benefiting from a genuine multi-utility solution, that is unavailable from any
other known supplier, materially reduces any competitive threat.
The Directors anticipate that the Group will face continued competition in the
future as new companies enter the market and alternative technologies and
services become available. The Group's services and expertise may be rendered
obsolete or uneconomic by technological advances or novel approaches developed
by one or more of the Group's competitors. In the event that smaller
independent energy suppliers were to experience financial difficulties as a
result of increasing wholesale prices for instance, it is possible that
customers could also have a loss of confidence in the Group, given that it is
also an independent energy supplier. The existing approaches of the Group's
competitors or new approaches or technologies developed by such competitors
may be more effective or affordable than those available to the Group. There
can be no assurance that the Group will be able to compete successfully with
existing or potential competitors or that competitive factors will not have a
material adverse effect on the Group's business, financial condition or
results of operations. However, as the Group's membership base continues to
rise, competition amongst suppliers of services to the Group is expected to
increase. This has already been evidenced by various volume-related growth
incentives which have been agreed with the Group's three largest wholesale
suppliers. This should also ensure that the Group has direct access to new
technologies and services available to the market.
Infrastructure risk
The provision of services to the Group's Members is reliant on the efficient
operation of third party physical infrastructure. There is a risk of
disruption to the supply of services to Members through any failure in the
infrastructure e.g. gas shortages, power cuts or damage to communications
networks. However, as the infrastructure is generally shared with other
suppliers, any material disruption to the supply of services is likely to
impact a large part of the market as a whole and it is unlikely that the Group
would be disproportionately affected. In the event of any prolonged disruption
isolated to the Group's principal supplier within a particular market,
services required by Members could in due course be sourced from another
provider.
Energy industry estimation risk
A significant degree of judgement and estimation is required in order to
determine the actual level of energy used by Members and hence that should be
recognised by the Group as sales. There is an inherent risk that the
estimation routines used by the Group do not in all instances fully reflect
the actual usage of Members. However, this risk is mitigated by the relatively
high proportion of Members who provide meter readings on a periodic basis, and
the rapid anticipated growth in the installed base of smart meters over the
next four years.
Gas Leakage within the national gas distribution network
The operational management of the national gas distribution network is outside
the control of the Group. There is a risk that the level of leakage in future
could be higher than those historically experienced, and above the level
currently expected.
Key man risk
The Group is dependent on its key management for the successful development
and operation of its business. In the event that any or all of the members of
the key management team were to leave the business, it could have a material
adverse effect on the Group's operations.
Single site risk
The Group operates from one principal site and, in the event of significant
damage to that site through fire or other issues, the operations of the Group
could be adversely affected.
Acquisition Risk
The Group may invest in other businesses, taking a minority, majority or 100%
equity shareholding, or through a joint venture partnership. Such investments
may not deliver the anticipated returns, and may require additional funding in
future.
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2016
Note 2016£'000 2015£'000
Revenue 1 744,732 729,178
Cost of sales (620,858) (612,969)
Gross profit 123,874 116,209
Distribution expenses (21,424) (21,876)
Share incentive scheme charges (36) (151)
Total distribution expenses (21,460) (22,027)
Administrative expenses (52,355) (46,544)
Share incentive scheme (charges) / credits (2,479) 1,173
Amortisation of intangible assets (11,228) (11,186)
Total administrative expenses (66,062) (56,557)
Other income 397 361
Operating profit 1 36,749 37,986
Financial income 126 133
Financial expenses (1,801) (2,066)
Net financial expense (1,675) (1,933)
Share of profit of associates 5,609 6,006
Profit before taxation 40,683 42,059
Taxation (8,909) (9,758)
Profit and other comprehensive income for the year attributable to owners of the parent 31,774 32,301
Basic earnings per share 2 39.8p 40.6p
Diluted earnings per share 2 39.6p 40.2p
Consolidated Balance Sheet
As at 31 March 2016
2016 2015
Assets £'000 £'000
Non-current assets
Property, plant and equipment 33,063 41,800
Investment property 9,211 -
Intangible assets 198,364 209,592
Goodwill 3,742 3,742
Investments in associates 11,604 10,843
Other non-current receivables 13,800 13,929
Total non-current assets 269,784 279,906
Current assets
Inventories 2,762 893
Trade and other receivables 27,749 28,128
Prepayments and accrued income 97,233 104,931
Cash 35,343 16,536
Total current assets 163,087 150,488
Total assets 432,871 430,394
Current liabilities
Short term borrowings - (4,934)
Deferred consideration (21,500) -
Trade and other payables (26,580) (24,885)
Current tax payable (936) (1,086)
Deferred tax (839) (551)
Accrued expenses and deferred income (114,583) (115,472)
Total current liabilities (164,438) (146,928)
Non-current liabilities
Long term borrowings (70,152) (64,139)
Deferred consideration - (21,500)
JSOP creditor - (1,507)
Total non-current liabilities (70,152) (87,146)
Total assets less total liabilities 198,281 196,320
Equity
Share capital 4,016 4,011
Share premium 137,729 137,238
Treasury shares (760) (760)
JSOP reserve (1,150) (2,275)
Retained earnings 58,446 58,106
Total equity 198,281 196,320
Consolidated Cash Flow Statement
For the year ended 31 March 2016
2016 2015
£'000 £'000
Operating activities
Profit before taxation 40,683 42,059
Adjustments for:
Share of profit/distributions from associates (5,609) (6,006)
Net financial expense 1,675 1,933
Depreciation of property, plant and equipment 3,596 1,834
Profit on disposal of fixed assets (12) -
Amortisation of intangible assets 11,228 11,186
Amortisation of debt arrangement fees 985 367
(Increase)/decrease in inventories (1,869) 878
Decrease in trade and other receivables 8,202 14,914
Increase/(decrease) in trade and other payables 1,206 (7,427)
Share incentive scheme charges/(credits) 2,515 (1,022)
Corporation tax paid (8,755) (9,058)
Net cash flow from operating activities 53,845 49,658
Investing activities
Purchase of property, plant and equipment (4,080) (20,306)
Disposal of property, plant and equipment 22 47
Distribution from associated company 5,474 4,148
Purchase of shares in associated company (626) (171)
Interest received 115 130
Cash flow from investing activities 905 (16,152)
Financing activities
Dividends paid (34,331) (30,230)
Interest paid (2,202) (1,652)
Drawdown of long term borrowing facilities 71,241 -
Repayment of borrowing facilities (70,000) (30,000)
Fees associated with long term borrowing facilities (1,147) (315)
Issue of new ordinary shares 496 598
Purchase of own shares - (760)
Cash flow from financing activities (35,943) (62,359)
Increase/(decrease) in cash and cash equivalents 18,807 (28,853)
Net cash and cash equivalents at the beginning of the year 16,536 45,389
Net cash and cash equivalents at the year end 35,343 16,536
Consolidated Statement of Changes in Equity
For the year ended 31 March 2016
Consolidated Share Share premium Treasury shares JSOP reserve Retained earnings Total
capital
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2014 4,001 136,651 - (2,275) 56,344 194,721
Profit and total comprehensive income - - - - 32,301 32,301
Deferred tax on share options - - - - (1,861) (1,861)
Dividends - - - - (30,230) (30,230)
Purchase of treasury shares - - (760) - - (760)
Credit arising on share options - - - - 1,552 1,552
Issue of new ordinary shares 10 587 - - - 597
Balance at 31 March 2015 4,011 137,238 (760) (2,275) 58,106 196,320
Profit and total comprehensive income - - - - 31,774 31,774
Dividends - - - - (34,331) (34,331)
Credit arising on share options - - - - 1,224 1,224
Credit arising on exercise of JSOP - - - 1,125 1,673 2,798
Issue of new ordinary shares 5 491 - - - 496
Balance at 31 March 2016 4,016 137,729 (760) (1,150) 58,446 198,281
Notes
1. Segment reporting
The Group's reportable segments reflect the two distinct activities around
which the Group is organised:
· Customer Acquisition; and
· Customer Management.
Customer Acquisition revenues represent joining fees from the Group's
distributors, the sale of marketing materials and sales of equipment including
mobile phone handsets and wireless internet routers. Customer Management
revenues are principally derived from the supply of fixed telephony, mobile
telephony, gas, electricity and internet services to residential and small
business customers.
The Board measures the performance of its operating segments based on revenue
and segment result, which is referred to as operating profit. The Group
applies the same significant accounting policies across both operating
segments.
Operating segments
Year ended 31 March 2016 Year ended 31 March 2015
Customer Management Customer Acquisition Total Customer Management Customer Acquisition Total
£'000 £'000 £'000 £'000 £'000 £'000
Revenue 727,936 16,796 744,732 712,652 16,526 729,178
Segment result 51,305 (14,556) 36,749 53,451 (15,465) 37,986
Operating profit 36,749 37,986
Net financing expense (1,675) (1,933)
Share of profit of associates 5,609 6,006
Profit before taxation 40,683 42,059
Taxation (8,909) (9,758)
Profit for the year 31,774 32,301
Segment assets 411,292 9,975 421,267 410,842 8,709 419,551
Investment in associates 11,604 - 11,604 10,843 - 10,843
Total assets 422,896 9,975 432,871 421,685 8,709 430,394
Segment liabilities (231,553) (3,037) (234,590) (231,048) (3,026) (234,074)
Net assets 198,281 196,320
Capital expenditure (3,988) (92) (4,080) (19,845) (461) (20,306)
Depreciation 3,515 81 3,596 1,792 42 1,834
Amortisation 11,228 - 11,228 11,186 - 11,186
The share of profit of associates relates to the Customer Management operating
segment.
Revenue by service
2016 2015
£'000 £'000
Customer Management
- Electricity 313,689 304,713
- Gas 273,889 278,367
- Fixed communications 102,085 93,706
- Mobile 24,434 20,334
- Other 13,839 15,532
727,936 712,652
Customer Acquisition 16,796 16,526
744,732 729,178
The Group operates solely in the United Kingdom.
2. Earnings per share
The calculation of basic and diluted earnings per share is based on the
following data:
2016£'000 2015£'000
Earnings for the purpose of basic and diluted earnings per share 31,774 32,301
Share incentive scheme charges/(credits) (net of tax) 2,278 (1,316)
Amortisation of intangible assets 11,228 11,186
Earnings excluding share incentive scheme charges and amortisation of intangibles for the purpose of adjusted basic and diluted earnings per share 45,280 42,171
Number Number
('000s) ('000s)
Weighted average number of ordinary shares for the purpose of basic earnings per share 79,789 79,581
Effect of dilutive potential ordinary shares (share incentive awards) 363 783
Weighted average number of ordinary shares for the purpose of diluted earnings per share 80,152 80,364
Adjusted basic earnings per share 56.7p 53.0p
Basic earnings per share 39.8p 40.6p
Adjusted diluted earnings per share1 56.5p 52.5p
Diluted earnings per share 39.6p 40.2p
It has been deemed appropriate to present the analysis of adjusted earnings
per share excluding share incentive scheme charges, and the amortisation of
intangible assets arising from the energy supply agreement with Npower, in
order to present a clearer picture of the underlying trading performance of
the Group.
3. Dividends
2016 2015
£'000 £'000
Prior year final paid 21p (2015: 19p) per share 16,734 15,105
Interim paid 22p (2015: 19p) per share 17,596 15,125
The Directors have proposed a final dividend of 24p per ordinary share
totalling approximately £19.2 million, payable on 29 July 2016, to
shareholders on the register at the close of business on 8 July 2016. In
accordance with the Group's accounting policies the dividend has not been
included as a liability as at 31 March 2016. This dividend will be subject to
income tax at each recipient's individual marginal income tax rate.
4. Related parties
Identity of related parties
The Company has related party relationships with its subsidiaries, its
associate and with its directors and executive officers.
Transactions with key management personnel
Directors of the Company and their immediate relatives control approximately
23.5% of the voting shares of the Company.
Details of the total remuneration paid to the directors of the Company as key
management personnel for qualifying services are set out below:
2016 2015
£'000 £'000
Short term employee benefits 1,377 1,202
Social security costs 184 296
Post employment benefits 80 83
1,641 1,581
Share incentive scheme (credits)/charges 1,555 (2,402)
3,196 (821)
During the year, the Company acquired goods and services worth approximately
£59,000 (2015: £16,000) from companies in which directors have a beneficial
interest. No amounts were owed to these companies by the Company as at 31
March 2016. During the year, the Company sold goods and services worth
approximately £33,000 (2015: £33,000) to companies in which directors have a
beneficial interest.
During the year directors purchased goods and services on behalf of the
Company worth approximately £161,000 (2015: £375,000). The directors were
fully reimbursed for the purchases and no amounts were owing to the directors
by the Company as at 31 March 2016.
Other related party transactions
Associates
During the year ended 31 March 2016, the associate supplied goods to the Group
which amounted to £1,371,000 (2015: £1,054,000) and at 31 March 2016 the
associate was owed £78,000 by the Group which is recognised within trade
payables (2015: £78,000). Transactions with the associate are priced on an
arm's length basis. Dividends received during the year from the associate
amounted to £5,474,000 (2015: £4,148,000) relating to the financial year to 31
March 2015.
Subsidiary companies
During the year ended 31 March 2016, the Company's subsidiaries purchased
goods and services from the Company in the amount of £50,519,000 (2015:
£49,262,000). At 31 March 2016 the Company owed the subsidiaries £35,466,000
which is recognised within trade payables (2015: £37,787,000 owed by the
Company to the subsidiaries).
5. Basis of preparation
The financial information set out above does not constitute the Group's
statutory information for the years ended 31 March 2016 or 2015, but is
derived from those accounts. The Group's consolidated financial information
has been prepared in accordance with accounting policies consistent with those
adopted for the year ended 31 March 2015. Statutory accounts for 2015 have
been delivered to the Registrar of Companies and those for 2016 will be
delivered following the Company's annual general meeting. The auditor has
reported on these accounts, their reports were unqualified and did not contain
statements under the Companies Act 2006, s498(2) or (3).
6. Directors' responsibility statement
The directors confirm, to the best of their knowledge:
(a) the financial statements, prepared in accordance with International
Financial Reporting Statements ("IFRSs") as adopted by the European Union,
give a true and fair view of the assets, liabilities, financial position and
profit or loss of the Group and the undertakings included in the consolidation
taken as a whole; and
(b) the Chairman's Statement, Chief Executive's Review, Financial Review and
Principal Risks and Uncertainties include a fair review of the development and
performance of the business and the position of the Group and the undertakings
included in the consolidation taken as a whole, together with a description of
the principal risks and uncertainties that they face.
The directors of Telecom Plus PLC and their functions are listed below:
Charles Wigoder - Executive Chairman
Julian Schild - Deputy Chairman and Senior Non Executive Director
Andrew Lindsay - Chief Executive Officer
Nick Schoenfeld - Chief Financial Officer
Melvin Lawson - Non Executive Director
Michael Pavia - Non Executive Director
By order of the Board
This information is provided by RNS
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