REG - Telecom Plus PLC - Half-year Report <Origin Href="QuoteRef">TEP.L</Origin> - Part 2
22/11/2016 07:06
- Part 2: For the preceding part double click ID:nRSV7589Pa
(26,126) (25,882) (52,355)
Share incentive scheme charges (736) (1,661) (2,479)
Amortisation of intangible assets 5 (5,614) (5,614) (11,228)
Total administrative expenses (32,476) (33,157) (66,062)
Other income 214 201 397
Operating profit 18,518 14,363 36,749
Financial income 60 54 126
Financial expense (745) (931) (1,801)
Net financial expense (685) (877) (1,675)
Share of profit of associate 832 1,754 5,609
Profit before taxation 18,665 15,240 40,683
Taxation (4,445) (3,838) (8,909)
Profit and total comprehensive income for the period attributable to owners of the parent 14,220 11,402 31,774
Basic earnings per share 9 17.8p 14.3p 39.8p
Diluted earnings per share 9 17.7p 14.2p 39.6p
Interim dividend per share 23.0p 22.0p
Condensed Consolidated Interim Balance Sheet
Note As at As at As at
30 September 30 September 31 March
2016 2015 2016
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 33,115 32,870 33,063
Investment property 4 9,268 9,401 9,211
Intangible assets 5 193,319 203,978 198,364
Goodwill 3,742 3,742 3,742
Investment in associate 7,417 7,160 11,604
Other non-current receivables 14,131 14,027 13,800
Total non-current assets 260,992 271,178 269,784
Current assets
Inventories 2,921 1,266 2,762
Trade and other receivables 26,156 24,240 27,749
Prepayments and accrued income 61,513 64,811 97,233
Cash 15,326 23,520 35,343
Total current assets 105,916 113,837 163,087
Total assets 366,908 385,015 432,871
Current liabilities
Short term borrowings 6 - (9,895) -
Deferred consideration (21,500) - (21,500)
Trade and other payables (25,405) (22,028) (26,580)
Current tax payable (4,737) (1,456) (936)
Deferred tax (586) (289) (839)
Accrued expenses and deferred income (68,641) (76,028) (114,583)
Total current liabilities (120,869) (109,696) (164,438)
Non-current liabilities
Long term borrowings 6 (51,525) (59,369) (70,152)
Deferred consideration - (21,500) -
JSOP creditor - (2,476) -
Total non-current liabilities (51,525) (83,345) (70,152)
Total assets less total liabilities 194,514 191,974 198,281
Equity
Share capital 4,019 4,014 4,016
Share premium 138,160 137,550 137,729
Treasury shares (760) (760) (760)
JSOP reserve (1,150) (2,275) (1,150)
Retained earnings 54,245 53,445 58,446
Total equity 194,514 191,974 198,281
Condensed Consolidated Interim Cash Flow Statement
Note 6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2016 2015 2016
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating activities
Profit before taxation 18,665 15,240 40,683
Adjustments for:
Share of profit of associate (832) (1,754) (5,609)
Net financial expense 685 877 1,675
Depreciation of property, plant and equipment 1,936 1,712 3,596
Profit on disposal of fixed assets (8) - (12)
Amortisation of intangible assets 5,614 5,614 11,228
Amortisation of debt arrangement fees 114 191 985
Increase in inventories (159) (373) (1,869)
Decrease in trade and other receivables 36,980 43,907 8,202
Increase / (decrease) in trade and other payables (47,116) (41,810) 1,206
Share incentive scheme charges 784 1,641 2,515
Corporation tax paid (900) (3,732) (8,755)
Net cash flow from operating activities 15,763 21,513 53,845
Investing activities
Purchase of property, plant and equipment (2,052) (2,183) (4,080)
Purchase of intangible assets (569) - -
Disposal of property, plant and equipment 14 - 22
Distribution from associated company 5,074 5,474 5,474
Purchase of shares in associated company (55) (36) (626)
Interest received 62 57 115
Cash flow from investing activities 2,474 3,312 905
Financing activities
Dividends paid 7 (19,205) (16,734) (34,331)
Interest paid (742) (1,422) (2,202)
Drawdown of long term borrowing facilities - - 71,241
Repayment of borrowing facilities (18,741) - (70,000)
Fees associated with borrowing facilities - - (1,147)
Issue of new ordinary shares 8 434 315 496
Cash flow from financing activities (38,254) (17,841) (35,943)
Increase/(decrease) in cash and cash equivalents (20,017) 6,984 18,807
Net cash and cash equivalents at the beginning of the period 35,343 16,536 16,536
Net cash and cash equivalents at the end of the period 15,326 23,520 35,343
Condensed Consolidated Interim Statement of Changes in Equity
Share Share Treasury JSOP Retained
Capital Premium Shares Reserve Earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2015 4,011 137,238 (760) (2,275) 58,106 196,320
Profit and total - - - - 11,402 11,402
comprehensive income for
the period
Dividends - - - - (16,734) (16,734)
Credit arising on share - - - - 671 671
options
Issue of new ordinary 3 312 - - - 315
shares
Balance at 30 September 4,014 137,550 (760) (2,275) 53,445 191,974
2015
Balance at 1 October 4,014 137,550 (760) (2,275) 53,445 191,974
2015
Profit and total - - - - 20,372 20,372
comprehensive income for
the period
Dividends - - - - (17,597) (17,597)
Credit arising on share - - - - 553 553
options
Credit on exercise of - - - 1,125 1,673 2,798
JSOP
Issue of new ordinary 2 179 - - - 181
shares
Balance at 31 March 2016 4,016 137,729 (760) (1,150) 58,446 198,281
Balance at 1 April 2016 4,016 137,729 (760) (1,150) 58,446 198,281
Profit and total - - - - 14,220 14,220
comprehensive income for
the period
Dividends - - - - (19,205) (19,205)
Credit arising on share - - - - 784 784
options
Issue of new ordinary 3 431 - - - 434
shares
Balance at 30 September 4,019 138,160 (760) (1,150) 54,245 194,514
2016
Notes to the condensed
interim financial
statements
1. General information
The condensed
consolidated interim
financial statements
presented in this half
-year report ("the Half
-Year Results") have
been prepared in
accordance with IAS 34.
The principal accounting
policies adopted in the
preparation of the
condensed consolidated
financial statements are
unchanged from those
used in the annual
report for the year
ended 31 March 2016 and
are consistent with
those that the company
expects to apply in its
financial statements for
the year ended 31 March
2017. There are no new
standards or amendments
to standards that are
mandatory for the first
time for the financial
year beginning 1 April
2016 that have an impact
on the Group financial
statements. The
condensed consolidated
financial statements for
the year ended 31 March
2016 presented in this
half-year report do not
constitute the company's
statutory accounts for
that period. The
condensed consolidated
financial statements for
that period have been
derived from the Annual
Report and Accounts of
Telecom Plus Plc. The
Annual Report and
Accounts of Telecom Plus
Plc for the year ended
31 March 2016 were
audited and have been
filed with the Registrar
of Companies. The
Independent Auditors'
Report on the Annual
Report and Accounts of
Telecom Plus Plc for the
year ended 31 March 2016
was unqualified and did
not draw attention to
any matters by way of
emphasis and did not
contain statements under
s498(2) or (3) of the
Companies Act 2006. The
financial information
for the periods ended 30
September 2016 and 30
September 2015 is
unaudited but has been
subject to a review by
the company's auditors.
Seasonality of business:
in respect of the energy
supplied by the Group,
approximately two thirds
is consumed by customers
in the second half of
the financial year.
The Half-Year Results
were approved for issue
by the Board of
Directors on 21 November
2016. 2. Judgements and
estimates The
preparation of the
condensed consolidated
interim financial
statements requires
management to make
judgements, estimates
and assumptions that
affect the application
of policies and reported
amounts of assets and
liabilities, income and
expenses. The estimates
and associated
assumptions are based on
historical experience
and various other
factors that are
believed to be
reasonable under the
circumstances, the
results of which form
the basis of making
judgments about carrying
values of assets and
liabilities that are not
readily apparent from
other sources. Actual
results may differ from
these estimates. The
estimates and underlying
assumptions are reviewed
on an ongoing basis.
Revisions to accounting
estimates are recognised
in the period in which
the estimate is revised
and in future periods if
applicable. In preparing
these condensed
consolidated interim
financial statements,
the significant
judgements made by
management in applying
the group's accounting
policies and the key
sources of estimation
uncertainty were the
same as those that
applied to the
consolidated financial
statements as at and for
the year ended 31 March
2016.
3. Operating segments
For management reporting
purposes, the Group is
currently organised into
two operating divisions:
Customer Management and
Customer Acquisition.
These divisions form the
basis on which the Group
reports its segment
information.
6 months ended 6 months ended Year ended
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited) (audited)
Segment Segment Segment
Revenue Result Revenue Result Revenue Result
£'000 £'000 £'000 £'000 £'000 £'000
Customer Management 282,673 27,379 286,262 20,080 727,936 51,305
Customer Acquisition 8,639 (8,861) 7,773 (5,717) 16,796 (14,556)
Total 291,312 18,518 294,035 14,363 744,732 36,749
As at 30 September 2016 (unaudited) As at 30 September 2015(unaudited) As at 31 March 2016 (audited)
£'000 £'000 £'000
Customer Management 359,535 377,310 422,896
Customer Acquisition 7,373 7,705 9,975
Total Assets 366,908 385,015 432,871
Customer Management (169,457) (190,551) (231,553)
Customer Acquisition (2,937) (2,490) (3,037)
Total Liabilities (172,394) (193,041) (234,590)
4. Investment property
Investment properties are properties which are held either to earn rental
income or for capital appreciation or for both. Investment properties are
stated at cost less accumulated depreciation.
Rental income from investment properties is accounted for on an accruals
basis. The Company vacated its former head office, Southon House, in the
prior year and the property is now held as an investment property.
An independent valuation of Southon House was conducted at 30 September 2015
in accordance with RICS Valuation - Professional Standards UK January 2014
(revised April 2015) guidelines. The independent market value of Southon
House was determined to be £10.2 million. The directors believe that there
have not been any material changes in circumstances that would lead to a
significant change in the market valuation of Southon House since 30 September
2015.
5. Intangible assets
Energy Supply Contract IT Software Development Total
£'000 £'000 £'000
Cost
At 31 March 2016 224,563 - 224,563
Additions - 569 569
At 30 September 2016 224,563 569 225,132
Amortisation
At 31 March 2016 (26,199) - (26,199)
Charge for the period (5,614) - (5,614)
At 30 September 2016 (31,813) - (31,813)
Net book amount at 30 September 2016 (unaudited) 192,750 569 193,319
Net book amount at 31 March 2016 (audited) 198,364 - 198,364
Net book amount at 30 September 2015 (unaudited) 203,978 - 203,978
The Energy Supply Contract intangible asset relates to the entering into of
the energy supply arrangements with npower on improved commercial terms
through the acquisition of Electricity Plus Supply Limited and Gas Plus Supply
Limited from Npower Limited having effect from 1 December 2013. The
intangible asset is being amortised evenly over the 20 year life of the energy
supply agreement.
The IT Software Development intangible asset relates to the capitalisation of
certain costs associated with the development of new IT systems.
6. Interest bearing loans and borrowings
6 months ended 30 September 2016 (unaudited) 6 months ended 30 September 2015 (unaudited) Year ended 31 March 2016 (audited)
£'000 £'000 £'000
Bank loans 52,500 70,000 71,241
Unamortised loan arrangement fees (975) (736) (1,089)
Working capital facilities - - -
51,525 69,264 70,152
Due within one year - 10,000 -
Due after one year 51,525 60,000 71,241
51,525 70,000 71,241
7. Dividends
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2016 2015 2016
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Final dividend for the year ended 31 March 2016 of 24p per share 19,205 - -
Final dividend for the year ended 31 March 2015 of 21p per share - 16,734 16,734
Interim dividend for the year ended 31 March 2016 of 22p per share (2015: 19p) - - 17,597
An interim dividend of 23.0p per share will be paid on 16 December 2016 to
shareholders on the register at close of business on 2 December 2016. The
estimated amount of this dividend to be paid is approximately £18.4m and, in
accordance with IFRS accounting requirements, has not been recognised in these
accounts.
8. Share capital
During the period the Company issued 66,433 new ordinary shares to satisfy the
exercise of employee and distributor share options.
9. Earnings per share
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2016 2015 2016
(unaudited) (unaudited) (audited)
The calculation of the basic and diluted earnings per share is based on the following data: £'000 £'000 £'000
Earnings for the purpose of basic and diluted earnings per share 14,220 11,402 31,774
Share incentive scheme charges / (credits) (net of tax) 637 1,502 2,278
Amortisation of intangible assets 5,614 5,614 11,228
Earnings excluding share incentive scheme charges for the purpose of adjusted basic and diluted earnings per share 20,471 18,518 45,280
Number Number Number
('000) ('000) ('000)
Weighted average number of ordinary shares for the purpose of basic earnings per share 80,024 79,679 79,789
Effect of dilutive potential ordinary shares (share incentive awards) 370 619 363
Weighted average number of ordinary shares for the purpose of diluted earnings per share 80,394 80,298 80,152
Adjusted basic earnings per share 1 25.6p 23.2p 56.7p
Basic earnings per share 17.8p 14.3p 39.8p
Adjusted diluted earnings per share1 25.5p 23.1p 56.5p
Diluted earnings per share 17.7p 14.2p 39.6p
1 In order to provide a clearer understanding of the underlying trading
performance of the Group, adjusted basic EPS excludes: (i) share incentive
scheme charges; and (ii) the amortisation of intangible assets arising on
entering into the new energy supply arrangements with npower in December 2013.
The amortisation of intangible assets and share incentive scheme charges have
been excluded on the basis that they represent non-cash accounting charges.
These balances can be derived directly from amounts shown separately on the
face of the condensed consolidated interim statement of comprehensive income.
This information is provided by RNS
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