REG - Telecom Plus PLC - Half-year Report <Origin Href="QuoteRef">TEP.L</Origin> - Part 2
21/11/2017 07:05
- Part 2: For the preceding part double click ID:nRSU0315Xa
17,833 40,867
Taxation (5,052) (4,445) (10,424)
Profit for period 14,022 13,388 30,443
Discontinued operations
Profit for period from associate - 832 64,517
Profit and other comprehensive income for the period attributable to owners of the parent 14,022 14,220 94,960
Basic earnings per share
Continuing operations 17.7p 16.7p 38.0p
Discontinued operations - 1.1p 80.6p
9 17.7p 17.8p 118.6p
Diluted earnings per share
Continuing operations 17.6p 16.7p 37.8p
Discontinued operations - 1.0p 80.1p
9 17.6p 17.7p 117.9p
Interim dividend per share 24.0p 23.0p
Condensed Consolidated Interim Balance Sheet
Note As at As at As at
30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 30,144 33,115 31,117
Investment property 4 8,880 9,268 9,089
Intangible assets 5 185,936 193,319 190,575
Goodwill 3,742 3,742 3,742
Investment in associate - 7,417 -
Other non-current assets 15,611 14,131 15,593
Total non-current assets 244,313 260,992 250,116
Current assets
Inventories 4,977 2,921 2,676
Trade and other receivables 31,011 26,156 29,812
Prepayments and accrued income 67,532 61,513 98,320
Cash 23,858 15,326 18,732
Total current assets 127,378 105,916 149,540
Total assets 371,691 366,908 399,656
Current liabilities
Deferred consideration - (21,500) -
Trade and other payables (25,674) (25,405) (24,608)
Current tax payable (4,737) (4,737) (5,407)
Accrued expenses and deferred income (68,059) (68,641) (111,322)
Total current liabilities (98,470) (120,283) (141,337)
Non-current liabilities
Long term borrowings 6 (44,255) (51,525) -
Deferred tax (870) (586) (605)
Total non-current liabilities (45,125) (51,111) (605)
Total assets less total liabilities 228,096 194,514 257,714
Equity
Share capital 3,928 4,019 4,024
Share premium 114,000 138,160 138,642
Treasury shares (760) (760) (760)
JSOP reserve (1,150) (1,150) (1,150)
Retained earnings 112,078 54,245 116,958
Total equity 228,096 194,514 257,714
Condensed Consolidated Interim Cash Flow Statement
Note 6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Operating activities
Profit before taxation - continuing operations 19,074 17,833 40,867
Adjustments for:
Net financial expense 407 685 1,289
Depreciation of property, plant and equipment 1,685 1,936 3,203
Profit on disposal of fixed assets - (8) (21)
Amortisation of intangible assets 6,101 5,614 12,088
Amortisation of debt arrangement fees 114 114 229
(Increase) / decrease in inventories (2,301) (159) 86
Decrease / (increase) in trade and other receivables 28,711 36,980 (4,084)
(Decrease) / increase in trade and other payables (42,194) (47,116) (5,241)
Share incentive scheme charges 995 784 1,185
Corporation tax paid (5,456) (900) (6,190)
Net cash flow from operating activities 7,136 15,763 43,411
Investing activities
Purchase of property, plant and equipment (503) (2,052) (2,066)
Purchase of intangible assets (1,462) (569) (3,406)
Disposal of property, plant and equipment - 14 60
Payment of deferred consideration - - (21,500)
Disposal of associated company - - 71,103
Distribution from associated company - 5,074 5,074
Purchase of shares in associated company - (55) (55)
Interest received 31 62 91
Cash flow from investing activities (1,934) 2,474 49,301
Financing activities
Dividends paid 7 (19,523) (19,205) (37,633)
Interest paid (441) (742) (1,370)
Drawdown of long term borrowing facilities 45,000 - -
Repayment of borrowing facilities - (18,741) (71,241)
Issue of new B shares in subsidiary 7 - -
Issue of new ordinary shares 8 254 434 921
Purchase of own shares 8 (25,373) - -
Cash flow from financing activities (76) (38,254) (109,323)
Increase/(decrease) in cash and cash equivalents 5,126 (20,017) (16,611)
Net cash and cash equivalents at the beginning of the period 18,732 35,343 35,343
Net cash and cash equivalents at the end of the period 23,858 15,326 18,732
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 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
Balance at 1 October 4,019 138,160 (760) (1,150) 54,245 194,514
2016
Profit and total - - - - 80,740 80,740
comprehensive income for
the period
Dividends - - - - (18,428) (18,428)
Credit arising on share - - - - 401 401
options
Issue of new ordinary 5 482 - - - 487
shares
Balance at 31 March 2017 4,024 138,642 (760) (1,150) 116,958 257,714
Balance at 1 April 2017 4,024 138,642 (760) (1,150) 116,958 257,714
Profit and total - - - - 14,022 14,022
comprehensive income for
the period
Dividends - - - - (19,523) (19,523)
Credit arising on share - - - - 995 995
options
Issue of new ordinary 4 250 - - - 254
shares
Issue of B shares in 7 - - - - 7
subsidiary
Purchase of cancelled (107) (24,892) - - (374) (25,373)
shares
Balance at 30 September 3,928 114,000 (760) (1,150) 112,078 228,096
2017
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 2017 and
are consistent with
those that the company
expects to apply in its
financial statements for
the year ended 31 March
2018. There are no new
standards or amendments
to standards that are
mandatory for the first
time for the financial
year beginning 1 April
2017 that have an impact
on the Group financial
statements. The
condensed consolidated
financial statements for
the year ended 31 March
2017 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 2017 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 2017
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 2017 and 30
September 2016 is
unaudited but has been
subject to a review by
the company's auditors.
The presentation of
financial information
for the period ended 30
September 2016 has been
changed to reflect the
disposal on 10 February
2017 of the company's
20% investment in Opus
Energy Group Limited as
detailed in Note 8 of
the Annual Report and
Accounts for the year
ended 31 March 2017.
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 20 November
2017. 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
2017.
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 2017 30 September 2016 31 March 2017
(unaudited) (unaudited) (audited)
Segment Segment Segment
Revenue Result Revenue Result Revenue Result
£'000 £'000 £'000 £'000 £'000 £'000
Customer Management 291,043 28,710 282,673 27,379 722,748 60,445
Customer Acquisition 7,872 (9,229) 8,639 (8,861) 17,542 (18,289)
Total 298,915 19,481 291,312 18,518 740,290 42,156
As at 30 September 2017 (unaudited) As at 30 September 2016(unaudited) As at 31 March 2017 (audited)
£'000 £'000 £'000
Customer Management 364,770 359,535 390,639
Customer Acquisition 6,921 7,373 9,017
Total Assets 371,691 366,908 399,656
Customer Management (141,100) (169,457) (138,850)
Customer Acquisition (2,495) (2,937) (3,092)
Total Liabilities (143,595) (172,394) (141,942)
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 2015 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 & Web Development Total
£'000 £'000 £'000
Cost
At 31 March 2017 224,563 5,571 230,134
Additions - 1,462 1,462
At 30 September 2017 224,563 7,033 231,596
Amortisation
At 31 March 2017 (37,427) (2,132) (39,559)
Charge for the period (5,614) (487) (6,101)
At 30 September 2017 (43,041) (2,619) (45,660)
Net book amount at 30 September 2017 (unaudited) 181,522 4,414 185,936
Net book amount at 31 March 2017 (audited) 187,136 3,439 190,575
Net book amount at 30 September 2016 (unaudited) 192,750 569 193,319
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 & Web Development intangible asset relates to the
capitalisation of certain costs associated with the development of new IT
systems. As set out in the last annual report, during the year ended 31 March
2017 certain IT software and web development assets were reclassified from
Property, Plant and Equipment to Intangible Assets.
6. Interest bearing loans and borrowings
6 months ended 30 September 2017 (unaudited) 6 months ended 30 September 2016 (unaudited) Year ended 31 March 2017 (audited)
£'000 £'000 £'000
Bank loans 45,000 52,500 -
Unamortised loan arrangement fees (745) (975) (860)
44,255 51,525 (860)
Due within one year - - -
Due after one year 44,255 51,525 -
44,255 51,525 -
As at 31 March 2017 the Company's bank loans were not drawn down and therefore
the unamortised arrangement fees were shown in non-current assets.
7. Dividends
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Final dividend for the year ended 31 March 2017 of 25p per share 19,523 - -
Final dividend for the year ended 31 March 2016 of 24p per share - 19,205 19,205
Interim dividend for the year ended 31 March 2017 of 23p per share (2016: 22p) - - 18,428
An interim dividend of 24.0p per share will be paid on 15 December 2017 to
shareholders on the register at close of business on 1 December 2017. The
estimated amount of this dividend to be paid is approximately £18.7m and, in
accordance with IFRS accounting requirements, has not been recognised in these
accounts.
8. Share capital
During the period the Company issued 78,917 new ordinary shares to satisfy the
exercise of employee and distributor share options.
During the period the Company repurchased for cancellation 2,145,890 ordinary
shares at 1165p per share through a tender offer made available to all
shareholders.
9. Earnings per share
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2017 2016 2017
(unaudited) (unaudited) (audited)
The calculation of basic and diluted EPS is based on the following data: £'000 £'000 £'000
Earnings for the purpose of basic and diluted EPS 14,022 14,220 94,960
Share of profit related to associate (net of tax) - (832) (64,517)
Earnings for the purpose of basic and diluted EPS - continuing operations 14,022 13,388 30,443
Share incentive scheme charges (net of tax) 918 637 968
Amortisation of energy supply contract intangible assets 5,614 5,614 11,228
Earnings excluding share incentive scheme charges for the purpose of adjusted basic and diluted EPS 20,554 19,639 42,639
Number Number Number
('000s) ('000s) ('000s)
Weighted average number of ordinary shares for the purpose of basic EPS 79,188 80,024 80,073
Effect of dilutive potential ordinary shares (share incentive awards) 441 370 438
Weighted average number of ordinary shares for the purpose of diluted EPS 79,629 80,394 80,511
Continuing operations
Adjusted basic EPS 26.0p 24.5p 53.3p
Basic earnings per share 17.7p 16.7p 38.0p
Continuing operations
Adjusted diluted earnings per share1 25.8p 24.4p 53.0p
Diluted earnings per share 17.6p 16.7p 37.8p
_________________
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 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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