REG - Trakm8 Holdings PLC - Final Results <Origin Href="QuoteRef">TKM8.L</Origin> - Part 2
03/07/2017 07:06
- Part 2: For the preceding part double click ID:nRSC8451Ja
Loss on foreign exchange transactions 40,048 46,212
Staff costs 7,301,417 6,036,138
Profit on disposal of property plant & equipment 103 -
£ £
Auditors' remuneration
Fees payable to the Company's auditors for the audit of the parent
company and consolidated financial statements 71,000 57,000
Fees payable to the Company's auditors for other services:
The audit of the Company's subsidiaries - 40,000
Tax compliance services 9,800 12,500
Tax advisory services 9,930 12,450
Adjusted Operating profit is monitored by the Board and measured as follows:
Year ended 31 March 2017 Year ended 31 March 2016
£ £
Operating Profit 857,601 3,110,406
Exceptional administrative costs 214,492 612,559
Share based payments 249,425 198,079
Adjusted Operating profit 1,321,518 3,921,044
5. EXCEPTIONAL ADMINISTRATIVE COSTS
Year ended 31 March 2017 Year ended 31 March 2016
£ £
Acquisition costs 63,190 578,943
Integration costs 89,514 33,616
Contract manufacturing residual inventory provisions 61,788 -
214,492 612,559
The acquisition costs related to the purchase of 100% of the share capital of
Roadsense Technology Limited in August 2016. The 2016 acquisition costs related to
the purchase of the trade and assets of DCS in June 2015 and 100% of the share
capital of Route monkey Holdings Limited. The integration costs related to the
reorganisation of management and integration of business systems and processes
following the acquisitions. The contact manufacturing residual inventory costs are
associated with the cessation of our manufacturing contracts with third parties as
part of our streamlining of the business. These costs have been included as part of
Administration costs.
6. FINANCE COSTS
Year ended 31 March 2017 Year ended 31 March 2016
£ £
Interest on bank loans 148,348 102,345
Interest on Hire Purchase agreements 16,237 5,863
164,585 108,208
7. EARNINGS PER ORDINARY SHARE
The earnings per Ordinary share have been calculated using the profit for the year and the weighted average number of Ordinary shares in issue during the year as follows:
Year ended 31 March 2017 Year ended 31 March 2016
£ £
Profit for the year after taxation 1,470,443 3,343,750
Exceptional administrative costs 214,492 612,559
Share based payments 249,425 198,079
Tax effect of adjustments (42,898) (122,512)
Adjusted profit for the year after taxation 1,891,462 4,031,876
No. No.
Number of Ordinary shares of 1p each 35,723,254 32,035,064
Basic weighted average number of Ordinary shares of 1p each 32,594,891 30,000,972
Diluted weighted average number of Ordinary shares of 1p each 33,708,702 32,571,617
Earnings per share 4.51p 11.15p
Diluted earnings per share 4.36p 10.27p
Adjust for effects of:
Exceptional costs 0.53p 1.63p
Share based payments 0.77p 0.66p
Adjusted earnings per share 5.81p 13.44p
Adjusted diluted earnings per share 5.61p 12.56p
8. SHARE CAPITAL
As at 31 March 2017 As at 31 March 2016
No's £ No's £
Authorised '000's '000's
Ordinary shares of 1p each 200,000 2,000,000 200,000 2,000,000
Allotted, issued and fully paid
Ordinary shares of 1p each 35,723 357,232 32,035 320,350
Movement in share capital:
As at 31 March 2017 As at 31 March 2016
£ £
As at 1 April 320,350 289,738
New shares issued 36,882 30,612
As at 31 March 357,232 320,350
The Company currently holds 29,000 Ordinary shares in treasury representing 0.08% (2016: 0.09%) of the Company's issued share capital. The number of 1 pence Ordinary shares that the Company has in issue less the total number of Treasury shares is 35,694,254.
During the year the following shares were issued:
Date Description Shares Consideration Premium
number £ £
07/04/2016 Exercise of options over Ordinary Shares by an employee 100,000 13,000 12,000
28/04/2016 Exercise of options over Ordinary Shares by an employee 100,000 19,500 18,500
03/05/2016 Exercise of options over Ordinary Shares by an employee 50,000 9,750 9,250
26/07/2016 Exercise of options over Ordinary Shares by an employee 200,000 36,500 34,500
30/09/2016 Share issue to senior management shareholders of Roadsense 7,420 15,471 15,397
10/03/2017 Share issue in connection with capital raising 3,230,770 2,100,000 2,067,692
3,688,190 2,194,221 2,157,339
The shares issued to senior management shareholders of Roadsense were issued at a premium which was subject to merger relief and has been taken to the Merger reserve.
9. CASH GENERATED FROM OPERATIONS
Year ended 31 March 2017 Year ended 31 March 2016
£ £
Profit before tax 693,061 3,003,072
Depreciation 303,958 232,269
Profit on disposal of fixed assets (103) -
Net bank and other interest 164,540 107,334
Amortisation of intangible assets 1,156,947 655,528
Share based payments 249,425 198,079
Operating cash flows before movement in working capital 2,567,828 4,196,282
Movement in inventories (1,376,921) (39,011)
Movement in trade and other receivables 498,593 (1,211,259)
Movement in trade and other payables (1,104,571) 1,489,544
Movement in provisions (46,282) 11,754
Cash generated from operations 538,647 4,447,310
Income taxes received 128,957 -
Net cash inflow from operating activities 667,604 4,447,310
10. BUSINESS COMBINATIONS
Roadsense Technology Limited
On 1 August 2016 the Company acquired the entire share capital of Roadsense
Technology Limited for a total consideration of £778,932.
Roadsense provides telematics solutions to smaller businesses. The company was
acquired to extend the customer base of the Group. The assets and liabilities
as at 1 August 2016 arising from the acquisition were as follows:
Fair value
£
Intangible assets 100,000
Property and equipment 99,875
Inventory 38,200
Trade and other receivables 62,486
Trade and other payables (186,584)
Net assets acquired 113,977
Goodwill 664,955
Total consideration 778,932
Satisfied by:
Cash 763,461
Fair value of shares in the Company 15,471
778,932
The acquisition was settled in cash of £763,461 and by issuing 7,420 shares in
Trakm8 Holdings PLC. The fair value of the equity shares issued was based on
the market value of Trakm8 Holdings PLC's traded shares with a fair value of
£15,471 on the acquisition date. Merger relief has been applied, leading to
the addition of £15,397 to the merger reserve rather than share premium.
The revenue included in the consolidated statement of comprehensive income
since 1 August 2016 contributed by Roadsense was £580,010. Roadsense also
contributed an operating loss of £235,239 over the same period. The Directors
have concluded that it is impractical to provide disclosure of the revenues
and profit that Roadsense would have contributed to the Group had it been
consolidated from 1 April 2016. This is due to audited accounts not being
available for the period 1 April 2016 to 31 July 2016, and significant
adjustments have been required to Roadsense's accounting policies in respect
of revenue recognition to align with the requirements of IFRS and Trakm8
Holdings PLC's accounting policies. Therefore it is impractical to recalculate
revenues for the period 1 April 2016 to 31 July 2016.
Acquisition related costs amounting to £63,190 have been recognised as an
exceptional administrative expense in the consolidated statement of
comprehensive income. The goodwill arising on the acquisition represents the
value of the marketing expertise and customer relationships acquired which
Trakm8 Holdings PLC plans to integrate into their existing telematics
offerings.
Route Monkey Holdings Limited
On 30 December 2015 the Company acquired the entire share capital of Route
Monkey Holdings Ltd and its wholly owned subsidiary Route Monkey Limited.
Under the purchase agreement, contingent consideration of up to £2,000,000 was
payable subject to the business achieving certain performance targets during
the year to 31 December 2016. None of this contingent consideration is
payable. No provision in relation to this consideration was recognised in the
prior year financial statements, so no adjustment has been made in these
financial statements.
This information is provided by RNS
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