REG - Telecom Plus PLC - Half Yearly Report <Origin Href="QuoteRef">TEP.L</Origin> - Part 2
19/11/2014 08:00
- Part 2: For the preceding part double click ID:nRSS3773Xa
Condensed Consolidated Cash Flow Statement
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2014 2013 2014
(unaudited) (unaudited) (audited)
Operating activities £'000 £'000 £'000
Profit before taxation 15,390 12,620 36,630
Adjustments for:
Share of profit of associate (1,816) (1,546) (4,654)
Net financial expense 1,061 10 746
Depreciation of property, plant and equipment 892 630 1,307
Loss on disposal of fixed assets 6 - -
Amortisation of intangible assets 5,603 - 3,785
Amortisation of debt arrangement fees 172 - 118
(Increase) / decrease in inventories 897 (87) (1,280)
Decrease in trade and other receivables 59,910 31,146 41,284
Decrease in trade and other payables (64,119) (33,019) (92,208)
Share incentive scheme charges 314 1,103 4,193
Corporation tax paid (4,719) (3,194) (7,104)
Net cash flow from operating activities 13,591 7,663 (17,183)
Investing activities
Purchase of property, plant and equipment (10,444) (791) (5,736)
Disposal of property, plant and equipment 46 - -
New energy supply agreement:
- Cash consideration and fees paid - - (202,629)
- Cash held in statutory entities acquired - - 64,175
Distribution from associated company 4,148 3,056 3,056
Purchase of shares in associate (171) - -
Interest received 92 31 107
Cash flow from investing activities (6,329) 2,296 (141,027)
Financing activities
Dividends paid (15,105) (12,656) (23,921)
Interest paid (1,226) (41) (769)
Drawdown of borrowing facilities - - 100,000
Repayment of borrowing facilities (30,000) - -
Fees associated with borrowing facilities (315) - (1,098)
Issue of new ordinary shares 323 573 131,061
Payment of share issue costs - - (2,447)
Purchase of own shares (760) - -
Cash flow from financing activities (47,083) (12,124) 202,826
Increase/(decrease) in cash and cash equivalents (39,821) (2,165) 44,616
Net cash and cash equivalents at the beginning of the period 45,389 773 773
Net cash and cash equivalents at the end of the period 5,568 (1,392) 45,389
Cash 5,568 3,344 45,389
Short term borrowings (cash equivalents) - (4,736) -
Net cash and cash equivalents at the end of the period 5,568 (1,392) 45,389
Condensed Consolidated Statement of Changes in Equity
Share Share Treasury JSOP Retained
Capital Premium Shares Shares Earnings Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 April 2013 3,530 8,508 - (2,275) 60,979 70,742
Profit and total comprehensive income for the period - - - - 10,053 10,053
Deferred tax on share options - - - - 203 203
Dividends - - - - (12,656) (12,656)
Credit arising on share options - - - - 311 311
Issue of new shares 12 561 - - - 573
Balance at 30 September 2013 3,542 9,069 - (2,275) 58,890 69,226
Balance at 1 October 2013 3,542 9,069 - (2,275) 58,890 69,226
Profit and total comprehensive income for the period - - - - 18,922 18,922
Deferred tax on share options - - - - 545 545
Dividends - - - - (11,265) (11,265)
Credit arising on share options - - - - 497 497
Issue of new shares 459 130,029 - - - 130,488
Costs associated with the issue of new ordinary shares - (2,447) - - - (2,447)
Balance at 31 March 2014 4,001 136,651 - (2,275) 67,589 205,966
Balance at 1 April 2014 4,001 136,651 - (2,275) 67,589 205,966
Profit and total comprehensive income for the period - - - - 11,475 11,475
Deferred tax on share options - - - - (1,524) (1,524)
Dividends - - - - (15,105) (15,105)
Purchase of treasury shares - - (760) - - (760)
Credit arising on share options - - - - 637 637
Issue of new shares 7 316 - - - 323
Balance at 30 September 2014 4,008 136,967 (760) (2,275) 63,072 201,012
Notes to the condensed financial statements
1. General information
The condensed consolidated 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
2014 and are consistent with those that the company
expects to apply in its financial statements for
the year ended 31 March 2015. The condensed
consolidated financial statements for the year
ended 31 March 2014 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 2014 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
2014 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 2014 and 30 September
2013 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 was
approved for issue by the Board of Directors on 18
November 2014.
2. 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 2014 30 September 2013 31 March 2014
(unaudited) (unaudited) (audited)
Segment Segment Segment
Revenue Result Revenue Result Revenue Result
£'000 £'000 £'000 £'000 £'000 £'000
Customer Management 259,412 21,033 238,229 16,819 642,541 44,858
Customer Acquisition 7,884 (6,398) 7,588 (5,735) 16,219 (12,136)
Total 267,296 14,635 245,817 11,084 658,760 32,722
As at 30 September 2014 (unaudited) As at 30 September 2013(unaudited) As at 31 March 2014 (audited)
£'000 £'000 £'000
Customer Management 371,412 145,211 474,145
Customer Acquisition 7,724 3,698 5,310
Total Assets 379,136 148,909 479,455
Customer Management (175,647) (77,415) (269,841)
Customer Acquisition (2,477) (2,268) (3,648)
Total Liabilities (178,124) (79,683) (273,489)
3. Property, plant and equipment
The increase in property plant and equipment during the six month period to 30
September 2014 mainly relates to the costs of refurbishing Merit House, the
Company's new headquarters office in north-west London.
4. Intangible assets
6 months ended 30 September 2014 (unaudited) 6 months ended 30 September 2013 (unaudited) Year ended 31 March 2014 (audited)
£'000 £'000 £'000
Cost
Amount brought forward 224,563 2,969 2,969
Additions - - 221,594
Amount carried forward 224,563 2,969 224,563
Amortisation
Amount brought forward (3,785) - -
Charge for the period (5,603) - (3,785)
Amount carried forward (9,388) - (3,785)
Carrying amount 215,175 2,969 220,778
The additions to intangible assets during the year ended 31 March 2014 related
to the entering into of the new energy supply arrangements with npower on
improved commercial terms through the acquisition of Electricity Plus Supply
Limited and Gas Plus Supply Limited ("the Companies") from npower Limited
having effect from 1 December 2013 ("the Transaction"). For accounting
purposes, the Transaction was treated as an asset purchase, not a business
combination, as the Companies acquired did not constitute businesses. Further
information on the Transaction can be found in Note 21 of the 2014 annual
financial statements.
The total consideration for the Transaction comprised a payment to npower of
£196.5 million on 20 December 2014, a deferred amount of £21.5 million payable
on 20 December 2016 and a payment of £2.5 million made in January 2014 for the
net assets acquired in the Companies which comprised cash and short term
working capital balances.
The addition to intangible assets of £221.6 million in the year ended 31 March
2014 therefore represents the total consideration paid and payable to npower,
excluding the payment for net assets acquired in the Companies, plus
transaction costs of £3.6 million, which in accordance with the relevant
accounting standards, have been recognised as a cost of acquisition.
The intangible asset is being amortised evenly over the 20 year life of the
energy supply agreement.
5. Interest bearing loans and borrowings
6 months ended 30 September 2014 (unaudited) 6 months ended 30 September 2013 (unaudited) Year ended 31 March 2014 (audited)
£'000 £'000 £'000
Bank loans 70,000 - 100,000
Unamortised loan arrangement fees (1,123) - (980)
Working capital facilities - 4,736 -
68,877 4,736 99,020
Due within one year - 4,736 20,000
Due after one year 70,000 - 80,000
70,000 4,736 100,000
The Group entered into total bank loan facilities of £125 million during the
year ended 31 March 2014, comprising a transaction facility of £100 million
("the Transaction Facility") which was fully drawn down as at 31 March 2014
and working capital facilities of £25 million ("the Working Capital
Facilities") of which £Nil were drawn down as at 31 March 2014.
The Transaction Facility was divided into two tranches: (i) Term Loan A of £70
million repayable by 20 December 2016; and (ii) Term Loan B of £30 million
repayable by 20 December 2015.
In July 2014 the Group restructured the Transaction Facility which involved
the early repayment of Term Loan B and extending the maturity and repayment
dates of Term Loan A. An extension to the Working Capital Facilities up to a
maximum of £40 million was also agreed.
6. Share premium
The increase in the share premium account during the year ended 31 March 2014
related mainly to the issue of 8,813,500 new ordinary shares at a price of
1475p per share on 20 December 2013 in order to fund the acquisition of
Electricity Plus Supply Limited and Gas Plus Supply Limited from npower
Limited.
7. Dividends
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2014 2013 2014
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Final dividend for the year ended 31 March 2014 of 19p per share 15,105 - -
Final dividend for the year ended 31 March 2013 of 18p per share - 12,656 12,656
Interim dividend for the year ended 31 March 2014 of 16p per share (2013: 13p) - - 11,265
An interim dividend of 19p per share will be paid on 15 December 2014 to shareholders on the register at close of business on 28 November 2014. The estimated amount of this dividend to be paid is £15.1 million and, in accordance with IFRS accounting requirements, has not been recognised in these accounts.
8. Earnings per share
6 months 6 months Year
ended ended ended
30 September 30 September 31 March
2014 2013 2014
(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 11,475 10,053 28,975Recent news on Telecom Plus
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