REG - Topps Tiles - Unaudited Interim Report 26 Weeks Ended 1 Apr 2017 <Origin Href="QuoteRef">TPT.L</Origin> - Part 2
23/05/2017 07:06
- Part 2: For the preceding part double click ID:nRSW8870Fa
5,000 (5,000) (10,000)
Net cash generated from /(used in) financing activities 202 (9,357) (15,683)
Net increase/(decrease) in cash and cash equivalents 3,215 (5,006) (6,336)
Cash and cash equivalents at beginning of period 10,228 16,564 16,564
Cash and cash equivalents at end of period 13,443 11,558 10,228
1. General information
The interim report was approved by the Board on 23 May 2017. The financial
information for the 26 weeks ended 1 April 2017 has been reviewed by the
company's auditor. Their report is included within this announcement. The
financial information for the 52 week period ended 1 October 2016 has been
based on information in the audited financial statements for that period.
The comparative figures for the 52 week period ended 1 October 2016 are an
abridged version of the Group's full financial statements and, together with
other financial information contained in these interim results, do not
constitute statutory financial statements of the Group as defined in section
434 of the Companies Act 2006. A copy of the statutory accounts for that 52
week period has been delivered to the Registrar of Companies. The auditor has
reported on those accounts: their report was unqualified, did not draw
attention to any matters by way of emphasis and did not contain a statement
under s498(2) or (3) of the Companies Act 2006.
This condensed set of consolidated financial statements has been prepared for
the 26 weeks ended 1 April 2017 and the comparative period has been prepared
for the 26 weeks ended 2 April 2016.
Basis of preparation and accounting policies
The annual financial statements of Topps Tiles Plc are prepared in accordance
with IFRSs as adopted by the European Union. The unaudited condensed
consolidated set of financial statements included in this half-yearly
financial report has been prepared in accordance with International Accounting
Standard 34 'Interim Financial Reporting', as adopted by the European Union.
The same accounting policies, presentation and methods of computation are
followed in the condensed set of financial statements as applied in the
Group's latest annual audited financial statements.
Going concern
Based on a detailed review of the risks and uncertainties contained within the
risks and uncertainties section above, the financial facilities available to
the Group, management's latest revised forecasts and a range of sensitised
scenarios the Board believe the Group will continue to meet all of its
financial commitments as they fall due and will be able to continue as a going
concern. The Board, therefore, consider it appropriate to prepare the
financial statements on a going concern basis.
2. Business segments
IFRS 8 requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the Chief
Executive to allocate resources to the segments and to assess their
performance. As there is one segment, being the operation of retail stores in
the UK, and the Chief Executive bases decisions on the performance of the
Group as a whole, separate operating segments have not been identified.
3. Taxation
26 weeks 26 weeks 52 weeks ended ended Ended 1 April 2 April 1 October 2017 2016 2016 £'000 £'000 £'000 (Unaudited) (Unaudited) (Audited) Current tax - charge for the period 2,135 1,706 3,906 Current tax - adjustment in respect of previous periods - - 148 Deferred tax - effect of reduction in UK corporation tax rate - (76) - Deferred tax - (credit) /charge for the period (54) 414 302 Deferred tax - adjustment in respect of previous periods - - 95 2,081 2,044 4,451
ended
ended
Ended
1 April
2 April
1 October
2017
2016
2016
£'000
£'000
£'000
(Unaudited)
(Unaudited)
(Audited)
Current tax - charge for the period
2,135
1,706
3,906
Current tax - adjustment in respect of previous periods
-
-
148
Deferred tax - effect of reduction in UK corporation tax rate
-
(76)
-
Deferred tax - (credit) /charge for the period
(54)
414
302
Deferred tax - adjustment in respect of previous periods
-
-
95
2,081
2,044
4,451
4. Interim dividend
An interim dividend of 1.10p (2016: 1.00p) per ordinary share has been
declared payable on 14 July 2017 to shareholders on the register at 15 June
2017; in accordance with IFRS the dividend will be recorded in the financial
statements in the second half of the period. A final dividend of 2.50p per
ordinary share was approved and paid in the period, in relation to the 52 week
period ended 1 October 2016.
5. Earnings per share
Basic earnings per share for the 26 weeks ended 1 April 2017 were 3.86p (2016:
4.17p) having been calculated on earnings (after deducting taxation) of
£7,430,000 (2016: £8,009,000) and on ordinary shares of 192,264,018 (2016:
192,055,438), being the weighted average of ordinary shares in issue during
the period.
Diluted earnings per share for the 26 weeks ended 1 April 2017 were 3.80p
(2016: 4.15p) having been calculated on earnings (after deducting taxation) of
£7,430,000 (2016: £8,009,000) and on ordinary shares of 195,742,070 (2016:
193,057,423), being the weighted average of ordinary shares in issue during
the period.
Adjusted earnings per share for the 26 weeks ended 1 April 2017 were 4.11p
(2016: 4.29p) having been calculated on adjusted earnings after tax of
£7,898,000 (2016: £8,235,000) being earnings (after deducting taxation) of
£7,430,000 adjusted for the post-tax impact of the following items; forward
currency contracts fair value gain of £nil (2016: £150,000), impairment of
property, plant and equipment of £206,000 (2016: £61,000), a net charge impact
of onerous lease provision reductions and restructuring costs of £262,000
(2016: £315,000).
6. Bank loans
26 weeks 26 weeks 52 weeks ended ended ended 1 April 2 April 1 October 2017 2016 2016 £'000 £'000 £'000
(Unaudited) (Unaudited) (Audited) Bank loans (all sterling) 39,749 39,622 34,691 The borrowings are repayable as follows: On demand or within one year - - - In the second to fifth year 40,000 40,000 35,000 40,000 40,000 35,000 Less: total unamortised issue costs (251) (378) (309) 39,749 39,622 34,691 Issue costs to be amortised within 12 months 116 116 116 Amount due for settlement after 12 months 39,865
39,738 34,807
52 weeks
ended
ended
ended
1 April
2 April
1 October
2017
2016
2016
£'000
£'000
£'000
(Unaudited) (Unaudited) (Audited)
Bank loans (all sterling) 39,749 39,622 34,691
The borrowings are repayable as follows:
On demand or within one year - - -
In the second to fifth year 40,000 40,000 35,000
40,000 40,000 35,000
Less: total unamortised issue costs (251) (378) (309)
39,749 39,622 34,691
Issue costs to be amortised within 12 months 116 116 116
Amount due for settlement after 12 months 39,865 39,738 34,807
The Group has in place a £50.0 million committed revolving credit facility, expiring 31 May 2019. As at 1 April 2017, £40.0 million of this facility was drawn (2016: £40.0 million), with a further £10.0 million of undrawn financing available (2016: £10.0 million). The loan facility contains financial covenants which are tested on a biannual basis. 7. Contingent liabilitiesThe directors are not aware of any contingent liabilities faced by the Group as at 1 April 2017. 8. Events after the balance sheet
dateThere were no events after the balance sheet date to report.
9. Share capital
The issued share capital of the Group as at 1 April 2017 amounted to
£6,547,000 (2 April 2016: £6,487,000). The Group issued 268,019 shares during
the period increasing the number of shares from 196,153,770 to 196,421,789.
10. Seasonality of sales
Historically there has not been any material seasonal difference in sales
between the first and second half of the reporting period, with approximately
50% of annual sales arising in the period from October to March.
11. Related party transactions
S.K.M Williams is a related party by virtue of his 10.5% shareholding
(20,593,950 ordinary shares) in the Group's issued share capital (2016: 9.9%
shareholding of 19,343,950 ordinary shares).
At 1 April 2017 S.K.M Williams was the landlord of two properties leased to
Multi Tile Limited, a trading subsidiary of Topps Tiles Plc, for £114,000
(2016: three properties for £187,000) per annum.
No amounts were outstanding with S.K.M. Williams at 1 April 2017 (2016: £nil).
The lease agreements on all properties are operated on commercial arm's length
terms.
Transactions between the Company and its subsidiaries, which are related
parties, have been eliminated on consolidation and are not disclosed in this
note, in accordance with the exemption available under IAS24.
INDEPENDENT REVIEW REPORT TO TOPPS TILES PLC
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the 26 week period ended 1
April 2017 which comprises the Consolidated Statement of Financial
Performance, the Consolidated Statement of Financial Position, the
Consolidated Statement of Changes in Equity, the Statement of Cash Flows and
related notes 1 to 11. We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the
condensed set of financial statements.
This report is made solely to the company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity"
issued by the Auditing Practices Board. Our work has been undertaken so that
we might state to the company those matters we are required to state to it in
an independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our review work, for this report, or for the conclusions
we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34 "Interim Financial Reporting" as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the 26 week period ended 1 April 2017 is not prepared, in
all material respects, in accordance with International Accounting Standard 34
as adopted by the European Union and the Disclosure and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditor
Manchester, United Kingdom
23 May 2017
This information is provided by RNS
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