REG - Topps Tiles - Unaudited Interim Report 26 Weeks Ended 2 April 16 <Origin Href="QuoteRef">TPT.L</Origin> - Part 2
24/05/2016 07:05
- Part 2: For the preceding part double click ID:nRSX0536Za
payment transactions - - - - - -
(57) (57) Balance at 2 April 2016
(Unaudited) 6,487 1,914
(2,637) (399) 3,299 20,359
(16,129) 12,894 For the 26 weeks
ended 28 March 2015 Equity
attributable to equity holders of
the parent Share-based Capital
Share Share Own Merger payment
redemption Retained Total capital
premium shares reserve reserve
reserve earnings equity £'000
£'000 £'000 £'000 £'000 £'000
£'000 £'000 Balance at 27
September 2014 (Audited) 6,455
1,879 (656) (399) 1,941 20,359
(28,736) 843 Total comprehensive
income for the period - - - - - -
7,116 7,116 Issue of share
capital 1 19 - - - - - 20
Dividends - - - - - - (3,087)
(3,087) Own shares purchased in
the period - - (504) - - - - (504)
Credit to equity for equity
-settled share based payments - -
- - 69 - - 69 Deferred tax on
share-based payment transactions -
- - - - - 113 113 Balance at 28
March 2015 (Unaudited) 6,456 1,898
(1,160) (399) 2,010 20,359
(24,594) 4,570
Condensed Consolidated Statement of Changes in Equity (continued) For the 53 weeks ended 3 October 2015 Equity attributable to equity holders of the parent Share-based Capital Share Share Own Merger payment redemption Retained Total capital premium shares reserve reserve reserve earnings equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 27 September 2014 (Audited) 6,455 1,879 (656) (399) 1,941 20,359 (28,359) 843 Total comprehensive income - - - - - - 13,065 13,065 for the period Issue of share capital 2 27 - - - - - 29 Dividends - - - - - - (4,534) (4,534) Own shares purchased in the period - - (504) - - - - (504) Own shares issued in the period - - 530 - - - - 530 Credit to equity for equity-settled share based payments - - - - 879 - - 879 Deferred tax on share-based payment transactions - - - - - - 490 490 Balance at 3 October 2015 (Unaudited) 6,457 1,906 (630) (399) 2,820 20,359 (19,715) 10,798
capital
premium
shares
reserve
reserve
reserve
earnings
equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at
03 October 2015 (Audited)
6,457
1,906
(630)
(399)
2,820
20,359
(19,715)
10,798
Total comprehensive income
for the period
-
-
-
-
-
-
8,009
8,009
Issue of share capital
30
8
-
-
(29)
-
-
9
Dividends
-
-
-
-
-
-
(4,366)
(4,366)
Own shares purchased in the period
-
-
(2,007)
-
-
-
-
(2,007)
Credit to equity for equity-settled share based payments
-
-
-
-
508
-
-
508
Deferred tax on share-based payment transactions
-
-
-
-
-
-
(57)
(57)
Balance at
2 April 2016
(Unaudited)
6,487
1,914
(2,637)
(399)
3,299
20,359
(16,129)
12,894
For the 26 weeks ended 28 March 2015
Equity attributable to equity holders of the parent
Share-based Capital
Share Share Own Merger payment redemption Retained Total
capital premium shares reserve reserve reserve earnings equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at
27 September 2014 (Audited) 6,455 1,879 (656) (399) 1,941 20,359 (28,736) 843
Total comprehensive income
for the period - - - - - - 7,116 7,116
Issue of share capital 1 19 - - - - - 20
Dividends - - - - - - (3,087) (3,087)
Own shares purchased in the period - - (504) - - - - (504)
Credit to equity for equity-settled share based payments - - - - 69 - - 69
Deferred tax on share-based payment transactions - - - - - - 113 113
Balance at
28 March 2015
(Unaudited) 6,456 1,898 (1,160) (399) 2,010 20,359 (24,594) 4,570
Condensed Consolidated Statement of Changes in Equity (continued) For the 53
weeks ended 3 October 2015
Equity attributable to equity holders of the parent
Share-based Capital
Share Share Own Merger payment redemption Retained Total
capital premium shares reserve reserve reserve earnings equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at
27 September 2014 (Audited) 6,455 1,879 (656) (399) 1,941 20,359 (28,359) 843
Total comprehensive income - - - - - - 13,065 13,065
for the period
Issue of share capital 2 27 - - - - - 29
Dividends - - - - - - (4,534) (4,534)
Own shares purchased in the period - - (504) - - - - (504)
Own shares issued in the period - - 530 - - - - 530
Credit to equity for equity-settled share based payments - - - - 879 - - 879
Deferred tax on share-based payment transactions - - - - - - 490 490
Balance at
3 October 2015
(Unaudited) 6,457 1,906 (630) (399) 2,820 20,359 (19,715) 10,798
Condensed Statement of Cash Flows
for the 26 weeks ended 2 April 2016
26 weeks 26 weeks 53 weeks
ended ended ended
2 April 28 March 3 October
2016 2015 2015
£'000 £'000 £'000
(Unaudited) (Unaudited) (Audited)
Cash flow from operating activities
Profit for the period 8,009 7,116 13,065
Taxation 2,044 1,986 3,954
Finance costs 597 1,132 2,083
Investment revenue (233) (93) (242)
Other (gains)/losses - (81) 23
Group operating profit 10,417 10,060 18,883
Adjustments for:
Depreciation of property, plant and equipment 2,812 2,461 5,243
Impairment of property, plant and equipment 77 47 432
Share option charge 508 69 1,409
Business simplification costs - - 2,619
(Increase)/decrease in trade and other receivables 1,841 (1,446) (2,125)
Decrease/(increase) in inventories 177 (2,595) 438
(Decrease)/increase in payables (2,437) 2,105 (2,680)
Cash generated by operations 13,395 10,701 24,219
Interest paid (440) (1,342) (1,882)
Taxation paid (1,910) (1,762) (3,882)
Net cash from operating activities 11,045 7,597 18,455
Investing activities
Interest received 43 92 127
Purchase of property, plant and equipment (4,730) (5,223) (12,058)
Proceeds on disposal of property, plant and equipment - 592 512
Purchase of own shares (2,007) (504) (504)
Net cash used in investment activities (6,694) (5,043) (11,923)
Financing activities
Dividends paid (4,366) (3,087) (4,534)
Proceeds from issue of share capital 9 20 29
Repayment of bank loans (5,000) (5,000) (5,000)
Loan issue costs - (10) (10)
Net cash used in financing activities (9,357) (8,077) (9,515)
Net decrease in cash and cash equivalents (5,006) (5,523) (2,983)
Cash and cash equivalents at beginning of period 16,564 19,547 19,547
Cash and cash equivalents at end of period 11,558 14,024 16,564
1. General information
The interim report was approved by the Board on 24th May 2016. The financial
information for the 26 weeks ended 2 April 2016 has been reviewed by the
company's auditor. Their report is included within this announcement. The
financial information for the 53 week period ended 3 October 2015 has been
based on information in the audited financial statements for that period.
The comparative figures for the 53 week period ended 3 October 2015 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 53
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 2 April 2016 and the comparative period has been prepared
for the 26 weeks ended 28 March 2015.
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 53 weeks ended ended Ended 2 April 28 March 3 October 2016 2015 2015 £'000 £'000 £'000 (Unaudited) (Unaudited) (Audited) Current tax - charge for the period 1,706 1,986 3,946 Current tax - adjustment in respect of previous periods - - 103 Deferred tax - effect of reduction in UK corporation tax rate (76) - - Deferred tax - charge / (credit) for the period 414 - (158) Deferred tax - adjustment in respect of previous periods - - 63
2,044 1,986 3,954
ended
ended
Ended
2 April
28 March
3 October
2016
2015
2015
£'000
£'000
£'000
(Unaudited)
(Unaudited)
(Audited)
Current tax - charge for the period
1,706
1,986
3,946
Current tax - adjustment in respect of previous periods
-
-
103
Deferred tax - effect of reduction in UK corporation tax rate
(76)
-
-
Deferred tax - charge / (credit) for the period
414
-
(158)
Deferred tax - adjustment in respect of previous periods
-
-
63
2,044
1,986
3,954
4. Interim dividend
An interim dividend of 1.00p (2015: 0.75p) per ordinary share has been
declared payable on 15 July 2016 to shareholders on the register at 10 June
2016; in accordance with IFRS the dividend will be recorded in the financial
statements in the second half of the period. A final dividend of 2.25p per
ordinary share was approved and paid in the period, in relation to the 53 week
period ended 3 October 2015.
5. Earnings per share
Basic earnings per share for the 26 weeks ended 2 April 2016 were 4.17p (2015:
3.67p) having been calculated on earnings (after deducting taxation) of
£8,009,000 (2015: £7,116,046) and on ordinary shares of 192,055,438 (2015:
193,675,300), being the weighted average of ordinary shares in issue during
the period.
Diluted earnings per share for the 26 weeks ended 2 April 2016 were 4.15p
(2015: 3.65p) having been calculated on earnings (after deducting taxation) of
£8,009,000 (2015: £7,116,046) and on ordinary shares of 193,057,423 (2015:
194,715,418), being the weighted average of ordinary shares in issue during
the period.
Adjusted earnings per share for the 26 weeks ended 2 April 2016 were 4.29p
(2015: 3.67p) having been calculated on adjusted earnings after tax of
£8,235,477 (2015: £7,101,469) being earnings (after deducting taxation) of
£8,009,000 adjusted for the post-tax impact of the following items; forward
currency contracts fair value gain of £150,240 (2015: gain £16,296),
impairment of property, plant and equipment of £61,310 (2015: £47,447), a net
charge impact of onerous lease provision reductions and restructuring costs of
£315,407 (2015: £33,263 net credit).
6. Bank loans
26 weeks 26 weeks 53 weeks ended ended ended 2 April 28 March 3 October 2016 2015 2015 £'000 £'000 £'000 (Unaudited) (Unaudited) (Audited) Bank loans (all sterling) 39,622 44,516 44,576 The borrowings are repayable as follows: On demand or within one year - - - In the second to fifth year 40,000 45,000 45,000 40,000 45,000 45,000 Less: total unamortised issue costs (378) (484) (424) 39,622 44,516 44,576 Issue costs to be amortised within 12 months 116 116 116 Amount due for settlement after 12 months 39,738
44,632 44,692
The Group now has in place a £50.0 million committed revolving credit facility, expiring 1 June 2019. As at the financial period end £40.0 million of this facility was drawn, with a further £10.0 million of undrawn financing available. The loan facility contains financial covenants which are tested on a biannual basis. At 2 April 2015, the Group had available £10 million (2015: £5 million) of undrawn committed banking facilities.
28 March
3 October
2016
2015
2015
£'000
£'000
£'000
(Unaudited)
(Unaudited)
(Audited)
Bank loans (all sterling)
39,622
44,516
44,576
The borrowings are repayable as follows:
On demand or within one year
-
-
-
In the second to fifth year
40,000
45,000
45,000
40,000
45,000
45,000
Less: total unamortised issue costs
(378)
(484)
(424)
39,622
44,516
44,576
Issue costs to be amortised within 12 months
116
116
116
Amount due for settlement after 12 months
39,738
44,632
44,692
The Group now has in place a £50.0 million committed revolving credit
facility, expiring 1 June 2019. As at the financial period end £40.0 million
of this facility was drawn, with a further £10.0 million of undrawn financing
available. The loan facility contains financial covenants which are tested on
a biannual basis. At 2 April 2015, the Group had available £10 million (2015:
£5 million) of undrawn committed banking facilities.
7. Contingent liabilities
The directors are not aware of any contingent liabilities faced by the Group
as at 2 April 2016.
8. Events after the balance sheet date
There were no events after the balance sheet date to report.
9. Share capital
The issued share capital of the Group as at 2 April 2016 amounted to
£6,487,000 (28 March 2015: £6,456,000). The Group issued 897,492 shares during
the period increasing the number of shares from 193,700,459 to 194,597,951.
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 9.9% shareholding
(19,343,950 ordinary shares) in the Group's issued share capital (2015: 10.45%
shareholding of 20,243,950 ordinary shares).
At 2 April 2016 S.K.M Williams was the landlord of three properties leased to
Multi Tile Limited, a trading subsidiary of Topps Tiles Plc, for £106,000
(2015: four properties for £230,000) per annum.
No amounts were outstanding with S.K.M. Williams at 2 April 2016 (2015: £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 2
April 2016 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 2 April 2016 is not prepared, in
all material respects, in accordance with
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