REG - Tracsis PLC - Interim Results <Origin Href="QuoteRef">TRCS.L</Origin> - Part 2
23/03/2017 07:26
- Part 2: For the preceding part double click ID:nRSW2547Aa
31 July 2016
Rail Technology & Services Traffic & Data Services Unallocated Total
£'000 £000 £000 £000
Assets
Total assets for reportable segments (exc. cash) 2,401 6,944 - 9,345
Intangible assets - - 26,882 26,882
Deferred tax assets - - 573 573
Cash and cash equivalents 4,365 1,507 5,513 11,385
Consolidated total assets 6,766 8,451 32,968 48,185
Liabilities
Total liabilities for reportable segments (5,004) (4,081) - (9,085)
Deferred tax - - (4,284) (4,284)
Contingent & deferred consideration - - (6,150) (6,150)
Consolidated total liabilities (5,004) (4,081) (10,434) (19,519)
5 Earnings per share
Basic earnings per share
The calculation of basic earnings per share for the Half Year to 31 January
2017 was based on the profit attributable to ordinary shareholders of
£1,401,000 (Half Year to 31 January 2016: £1,127,000, Year ended 31 July 2016:
£3,533,000) and a weighted average number of ordinary shares in issue
27,706,000 (Half Year to 31 January 2016: 26,872,000, Year ended 31 July 2016:
27,807,000), calculated as follows:
Weighted average number of ordinary shares
In thousands of shares
Six months ended 31 January2017 Six months ended 31 January2016 Year ended 31 July 2016
Issued ordinary shares at start of period 27,546 26,564 26,564
Effect of shares issued related to business combinations - 106 360
Effect of shares issued for cash 160 202 883
Weighted average number of shares at end of period 27,706 26,872 27,807
Diluted earnings per share
The calculation of basic earnings per share for the Half Year to 31 January
2017 was based on the profit attributable to ordinary shareholders of
£1,401,000 (Half Year to 31 January 2016: £1,127,000, Year ended 31 July 2016:
£3,533,000) and a weighted average number of ordinary shares in issue after
adjustment for the effects of all dilutive potential ordinary shares of
28,591,000 (Half Year to 31 January 2016: 27,904,000, Year ended 31 July 2016:
28,811,000).
Adjusted EPS
In addition, Adjusted Profit EPS is shown below on the grounds that it is a
common metric used by the market in monitoring similar businesses. A
reconciliation of this figure is provided below:
Six months ended 31 January2017 Six months ended 31 January2016 Year ended 31 July 2016
£'000 £'000 £'000
Profit attributable to ordinary shareholders 1,401 1,127 3,533
Amortisation of intangible assets 837 566 1,378
Share-based payment charges 484 486 1,087
Exceptional item: Loss on disposal - 272 175
Exceptional items: Acquisition & disposal costs - 152 272
Adjusted profit for EPS purposes 2,722 2,603 6,445
Weighted average number of ordinary sharesIn thousands of shares
For the purposes of calculating Basic earnings per share 27,706 26,872 27,807
Adjustment for the effects of all dilutive potential ordinary shares 28,591 27,904 28,811
Basic adjusted earnings per share 9.82p 9.69p 23.18p
Diluted adjusted earnings per share 9.52p 9.33p 22.37p
6 Seasonality
The Group offers a range of products and services within its overall suite,
meaning that revenues can fluctuate depending on the status and timing of
certain sales. Some of these are exposed to high levels of seasonality for
example:
· SEP Limited has a high level of seasonality based on the timing of
events and as such made a loss in the period to 31 January 2017 and 2016 but
this is expected to reverse in the second half of the year as was noted in the
year ended 31 July 2016;
· Ontrac Limited performs some significant software development projects
and the specific timing of these can vary depending on the commercial terms;
· The Group's Traffic & Data Services division also derives revenue from
work taking place at certain times of the year and is exposed to seasonality;
· Revenues from remote condition monitoring are also driven by the size
and timing of significant orders received from major customers;
· Finally, the timing of certain software licence renewals and new sales
along with consultancy offerings can also impact on when work is performed,
revenues are delivered and therefore recognised.
As such, the overall Group continues to be exposed to a high degree of
seasonality throughout the year and reporting period and this seasonality has
increased in the period under review.
7 Dividends
As part of the Group's commitment to a progressive dividend policy adopted in
2012, the Directors recommend an interim dividend payment of 0.60p per share,
with a total expected value of c. £167k based on the number of shares in issue
at the date of this interim report.
The cash cost of the dividend payments made is shown below:
Six months ended 31 January 2017 Six months ended 31 January 2016 Year ended 31 July 2016
£000 £000 £000
Final dividend for 2014/15 of 0.60p per share paid - - 164
Interim dividend for 2015/16 of 0.50p per share paid - - 137
Total dividends paid - - 301
The dividends paid or proposed in respect of each financial year ended 31 July
is as follows:
2017 2016 2015 2014 2013 2012
£'000 £'000 £000 £000 £000 £000
Interim dividend for 2011/12 of 0.20p per share paid - - - - - 48
Final dividend for 2011/12 of 0.35p per share paid - - - - - 87
Interim dividend for 2012/13 of 0.30p per share paid - - - - 75 -
Final dividend for 2012/13 of 0.40p per share paid - - - - 102 -
Interim dividend for 2013/14 of 0.35p per share paid - - - 89 - -
Final dividend for 2013/14 of 0.45p per share paid - - - 119 - -
Interim dividend for 2014/15 of 0.40p per share paid - - 106 - - -
Final dividend for 2014/15 of 0.60p per share paid - - 164 - - -
Interim dividend for 2015/16 of 0.50p per share paid - 137 - - - -
Final dividend for 2015/16 of 0.70p per share paid - 195 - - - -
Interim dividend for 2016/17 of 0.60p per share proposed 167 - - - - -
The total dividends paid or proposed in respect of each financial year ended
31 July is as follows:
2017 2016 2015 2014 2013 2012
£'000 £'000 £000 £000 £000 £000
Total dividends paid per share n/a 1.2p 1.0p 0.8p 0.7p 0.55p
8 Related party transactions
The following transactions took place during the year with other related
parties:
Purchase of Amounts owed to
goods and services related parties
H1 2017 H1 2016 FY 2016 H1 2017 H1 2016 FY 2016
£'000 £'000 £'000 £'000 £'000 £'000
Leeds Innovation Centre Limited 41 37 74 8 8 7
Ashtead Plant Hire Co Limited 10 - 25 1 - 13
Leeds Innovation Centre Limited is a company which is connected to The
University of Leeds. Tracsis plc rents its office accommodation, along
with related office services, from this company.
Ashtead Plant Hire Co Limited is a subsidiary of Ashtead Group plc (Ashtead)
of which Chris Cole is Chairman. SEP Limited, one of the Group's
subsidiaries purchased goods and services from Ashtead during the year. All
transactions with Ashtead took place at arm's length commercial
rates and were not connected to Mr Cole's position at Ashtead. SEP Limited
traded with Ashtead prior to its acquisition by Tracsis plc.
Sale of Amounts owed by
goods and services related parties
H1 2017 H1 2016 FY 2016 H1 2017 H1 2016 FY 2016
£'000 £'000 £'000 £'000 £'000 £'000
WSP | Parsons Brinckerhoff 1,015 945 2,136 69 18 679
WSP | Parsons Brinckerhoff (WSP) is a company which is connected to Chris Cole
who serves as non-executive Chairman of Tracsis plc and also of WSP. Sales to
WSP took place at arm's length commercial rates and were not connected to Mr
Cole's position at WSP as the Group traded with WSP prior to his appointment
at Tracsis in April 2014. On 31 October 2014, WSP completed the acquisition of
Parsons Brinckerhoff
(PB) which made PB a related party of the Group from this date. One of the
Group's subsidiary companies, Tracsis Traffic Data Limited, traded extensively
with PB prior to its acquisition by WSP as it carried out an agreement for a
significant piece of data collection work for a UK transport agency which was
entered into in May 2014. All transactions with PB took place at arm's length
commercial rates and were not connected to Mr Cole's position at WSP.
Nutshell Software Limited
On 21 July 2016, the Group entered into an agreement to make an investment in
Nutshell Software Limited, a company connected to Martyn
Cuthbert who is a Director of Ontrac Limited and Ontrac Technology Limited,
subsidiary companies of the Group following their acquisition in
December 2015.
Statement of Directors' Responsibilities
The Directors confirm to the best of their knowledge that:
i) The condensed consolidated interim financial information has been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union;
ii) The interim management report includes a fair review of the
information required by the FSA's Disclosure and Transparency Rules (4.2.7 R
and 4.2.8 R).
Financial statements are published on the Group's website in accordance with
legislation in the United Kingdom governing the preparation and dissemination
of financial statements, which may vary from legislation in other
jurisdictions. The maintenance and integrity of the Group's website is the
responsibility of the Directors. The Directors' responsibility also extends
to the ongoing integrity of the financial statements contained therein.
The Directors of Tracsis plc and their functions are listed below.
Further information for Shareholders
Company number: 05019106
Registered office: Leeds Innovation Centre
103 Clarendon Road
Leeds
LS2 9DF
Directors: Chris Cole (Non-Executive Chairman)
John McArthur (Chief Executive Officer)
Max Cawthra (Group Finance Director)
John Nelson (Non-Executive Director)
Lisa Charles-Jones (Non-Executive Director)
Liz Richards (Non-Executive Director)
Company Secretary: Max Cawthra
This information is provided by RNS
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