- Part 3: For the preceding part double click ID:nRSL7312Hb
contributed 27% of Group revenue and was in the public sector.
In 2016, the largest single customer contributed 24% of Group revenue and was
in the private sector.
5. Profit from operations
2017 2016
£'000 £'000
Profit from operations is stated after charging:
Depreciation of owned assets 60 46
Amortisation of intangible assets 5 38
Impairment of intangible assets - 69
Operating leases for land and buildingsOther operating leases 48944 47950
Impairment of receivables 69 12
Auditors' remuneration:
Audit of financial statements: Group and company 53 50
Taxation compliance services 4 5
--------- ---------
6. Finance expense
2017£'000 2016£'000
Bank interest payable 3 8
Other interest payable 1 2
-------- --------
Total interest expense 4 10
Unwinding of discount on provisions 27 108
-------- --------
Total finance expense 31 118
--------- ---------
7. Employees and directors
Group and company 2017 2016
Number Number
Average number of persons (including executive Directors) employed
Senior management 5 4
Fee earners 27 26
Sales 13 14
Administration and finance 8 8
--------- ---------
53 52
--------- ---------
Staff costs for the above persons (including executive Directors) 2017£'000 2016£'000
Wages and salaries 3,291 3,040
Social security costs 381 358
Defined contribution pension costs 320 264
Equity settled share-based payments 2 4
--------- ---------
3,994 3,666
--------- ---------
2017 2016
Directors £'000 £'000
Emoluments 299 280
Money purchase pension contributions 27 27
-------- --------
326 307
--------- ---------
Two Directors (2016: two) had retirement benefits accruing under money
purchase pension schemes.
8. Tax credit
2017 2016
£'000 £'000
Current tax
Current tax on profits for the year - -
Research and development tax credit relating to earlier period (2) -
Deferred tax
Increase in recognised deferred tax asset (11) (350)
-------- --------
Total tax credit for the year (13) (350)
--------- ---------
The differences between the actual tax credit for the year and the standard
rate of corporation tax in the UK applied to profits for the year are as
follows:
2017 2016
£'000 £'000
Profit before tax 1,521 863
Profit before tax multiplied by standard rate of corporation tax in the UK of 20% (2016: 21%) 304 173
Research and development tax credit relating to earlier period (2) -
Expenses not deductible for tax purposes 8 24
Brought forward losses utilised against taxable profits - (197)
Recognition of previously unrecognised deferred tax on losses (323) (350)
-------- --------
Tax credit for the year (13) (350)
--------- ---------
2017 2016
£'000 £'000
Deferred tax asset
The movement in deferred tax is as follows:
At beginning of the year 350 -
Utilisation against taxable profits (312) -
Recognition of previously unrecognised deferred tax on losses 342 316
(Decrease)/increase in relation to timing differences (15) 34
Rate change (4) -
-------- --------
At end of the year 361 350
--------- ---------
Deferred tax assets have been recognised in respect of tax losses where the
Directors believe it is probable that the assets will be recovered. A deferred
tax asset amounting to £732,000 (2016: £1,081,000) has not been recognised in
respect of trading losses, which can be carried forward indefinitely.
9. Dividends
Dividend paid on equity shares during the year: nil (2016: nil)
Proposed final dividend on equity shares: 0.5p per share (2016: nil),
totalling £77,448 (2016: nil). This dividend has not been accrued in the
statements of financial position.
Subject to shareholder approval at the Annual General Meeting, the Company
will pay the proposed dividend on Tuesday 7 September 2017 to all shareholders
on the register of members of the Company at the close of business on 11
August 2017 (the "Record Date").
10. Earnings per ordinary share
Earnings per share have been calculated on the profit for the year divided by
the weighted average number of shares in issue during the period based on the
following:
2017 2016
Profit for the year £1,534,000 £1,213,000
-------------- --------------
Average number of shares in issue 15,219,826 15,149,579
Effect of dilutive options 848,437 554,919
_________ _________
Average number of shares in issue plus dilutive options 16,068,263 15,704,498
-------------- --------------
Basic earnings per share 10.08p 8.01p
--------- ---------
Diluted earningsper share 9.55p 7.72p
--------- ---------
11. Intangible assets
Group and company Purchasedsoftware Internally developed software Total
£'000 £'000 £'000
Cost
At 31 March 2015 264 1,110 1,374
Additions 8 - 8
-------- -------- --------
At 31 March 2016 272 1,110 1,382
Additions - - -
-------- -------- --------
At 31 March 2017 272 1,110 1,382
--------- --------- ---------
Accumulated amortisation/impairment
At 31 March 2015 255 1,007 1,262
Charge for the year 4 34 38
Impairment - 69 69
-------- -------- --------
At 31 March 2016 259 1,110 1,369
Charge for the year 5 - 5
-------- -------- --------
At 31 March 2017 264 1,110 1,374
--------- --------- ---------
Net book value
At 31 March 2017 8 - 8
--------- --------- ---------
At 31 March 2016 13 - 13
--------- --------- ---------
12. Property, plant and equipment
Group and company Computerhardware Fixtures& fittings Motorvehicles Total
£'000 £'000 £'000 £'000
Cost
At 31 March 2015 302 706 42 1,050
Additions 29 13 - 42
-------- -------- -------- --------
At 31 March 2016 331 719 42 1,092
Additions 39 35 - 74
-------- -------- -------- --------
At 31 March 2017 370 754 42 1,166
--------- --------- --------- ---------
Accumulated depreciation
At 31 March 2015 256 650 20 926
Charge for the year 21 15 10 46
-------- -------- -------- --------
At 31 March 2016 277 665 30 972
Charge for the year 28 22 10 60
-------- -------- -------- --------
At 31 March 2017 305 687 40 1,032
--------- --------- --------- ---------
Net book value
At 31 March 2017 65 67 2 134
--------- --------- --------- ---------
At 31 March 2016 54 54 12 120
--------- --------- --------- ---------
The net carrying amount of property, plant and equipment includes £2,000
(2016: £12,000) in respect of assets held under finance leases.
13. Investments
Company
Investments are:
(a) Generic Software Consultants Limited ("Generic"), a 100% subsidiary
undertaking, in respect of both voting rights and issued shares, which is
registered in England and Wales and has an issued share capital of 5,610 US$1
ordinary shares. The investment is stated in the Company's books at £440.
Up to 31 March 2009 Generic acted as an agent for the business, but did not
enter into any transactions in its own right: its business was included within
the figures reported by the Company. On 1 April 2009 the agency agreement was
terminated and all business is now conducted directly by the parent company
through its Generic business.
(b) Triad Special Systems Limited, Generic Online Limited, Zubed Geospatial
Limited, Zubed Sales Limited, are all 100% subsidiaries which are registered
in England and Wales. They are dormant companies, which have never traded.
Each has a share capital of £1.
The registered office of Triad Special Systems is Huxley House, Weyside Park,
Catteshall Lane, Godalming, Surrey GU7 1XE. The registered office of the other
subsidiaries is 37 Sunningdale House, Caldecotte Lake Drive, Caldecotte,
Milton Keynes MK7 8LF.
14. Trade and other receivables
Group and company 2017 2016
£'000 £'000
Trade receivables 4,081 3,507
Less: provision for impairment of trade receivables (33) (18)
-------- --------
Trade receivables-net 4,048 3,489
Accrued income 757 1,036
-------- --------
Trade and other receivables 4,805 4,525
Prepayments 246 158
-------- --------
5,051 4,683
--------- ---------
The fair value of trade and other receivables approximates closely to their
book value.
Trade receivables are normally on 30 days payment terms. As at 31 March 2017
trade receivables of £1,011,000 (2016: £603,000) were past due but not
impaired. They relate to customers with no default history. The total number
of customer ledger balances at 31 March 2017 was 51 (2016: 65). The ageing
analysis of these receivables is as follows:
Group and company 2017 2016
£'000 £'000
Up to 30 days past due 722 518
30 to 60 days past due 136 63
Over 60 days past due 153 22
-------- --------
1,011 603
--------- ---------
Movements on the provision for impairment of trade receivables is as follows:
Group and company 2017 2016
£'000 £'000
At beginning of the year 18 28
Charged to income statement 67 12
Credited to income statement - (22)
Written off during the year (52) -
-------- --------
At end of the year 33 18
--------- ---------
The carrying amount of the Group's trade and other receivables are denominated
in the following currencies:
Group and company 2017 2016
£'000 £'000
Sterling 4,780 4,505
Euros 25 20
-------- --------
4,805 4,525
---------- ---------
15. Cash and cash equivalents
Group and company 2017 2016
£'000 £'000
Cash available on demand 2,248 955
--------- ---------
The fair value of cash and cash equivalents approximates closely to their book
value.
The carrying amount of the Group's cash and cash equivalents is denominated in
the following currencies:
Group and company 2017 2016
£'000 £'000
Sterling 2,211 908
Euros 37 47
-------- --------
2,248 955
--------- ---------
For the purpose of the consolidated cash flow statement, cash and cash
equivalents consist of cash, as detailed above, net of bank borrowings
repayable on demand.
16. Trade and other payables
Group Company
2017 2016 2017 2016
£'000 £'000 £'000 £'000
Trade payables 2,568 1,945 2,568 1,945
Accruals 652 968 652 968
Owed to subsidiary - - 5 5
-------- -------- -------- --------
3,220 2,913 3,225 2,918
Deferred income 82 109 82 109
Other taxation and social security 400 474 400 474
-------- -------- -------- --------
3,702 3,496 3,707 3,501
--------- --------- --------- ---------
The maturity date of trade and other payables is as follows:
Group Company
2017 2016 2017 2016
£'000 £'000 £'000 £'000
Up to 3 months 2,698 2,637 2,703 2,642
3 to 6 months 151 156 151 156
6 to 12 months 371 120 371 120
-------- -------- -------- --------
3,220 2,913 3,225 2,918
--------- --------- --------- ---------
The fair value of trade and other payables approximates closely to their book
value.
The carrying amount of trade and other payables is denominated in the
following currencies:
Group Company
2017 2016 2017 2016
£'000 £'000 £'000 £'000
Sterling 3,193 2,889 3,198 2,894
Euros 27 24 27 24
-------- -------- -------- --------
3,220 2,913 3,225 2,918
--------- --------- --------- ---------
17. Financial liabilities
Group and company 2017 2016
£'000 £'000
Current
Finance lease obligations 11 7
--------- ---------
Non-current
Finance lease obligations - 11
--------- ---------
The fair value of bank borrowings approximates closely to their book value.
The carrying amount of the Group's financial liabilities is all denominated in
sterling.
Bank borrowings are in the form of a receivables finance facility to borrow an
amount up to 90% of approved trade debtors subject to a maximum limit of
£2.5m. This facility is secured by way of a debenture over all the assets of
the Group. Bank borrowings are repayable upon demand. The balance at the year
end was nil (2016: nil).
The receivables finance facility is included as part of cash and cash
equivalents for the purpose of the cash flow statement as it forms an integral
part of the Group's cash management.
18. Provisions
Group and company Provision forvacant properties Provision for property dilapidation Other provision Total
£'000 £'000 £'000 £'000
At 1 April 2016 465 86 - 551
Charged to income statement - 25 115 140
Utilised in year (252) (16) - (268)
Unwinding of discount: passage of time (note 6) 27 - - 27
-------- -------- -------- --------
At 31 March 2017 240 95 115 450
--------- --------- --------- ---------
The discount rate applied in the calculation of the provision for vacant
properties is 5.95% (2016:
5.84%).
The maturity profile of the present value of provisions is as follows:
Group and company Provision forvacant properties Provision for property dilapidation Other provision Total
£'000 £'000 £'000 £'000
Current 240 50 115 405
Non-current - 45 - 45
------- -------- -------- --------
240 95 115 450
--------- --------- --------- ---------
The provision for vacant properties covers the anticipated future costs of
rent, rates and other outgoings in respect of unoccupied property, less
anticipated future rental income. It has been calculated on the basis of when
the property is anticipated to be sub-let. These liabilities have been
discounted therefore there is no material difference between the value of the
provision recorded in the accounts and the fair value. The maturity profile of
the carrying amount of this provision as at 31 March 2017 is as follows:
Group and company 2017 2016
£'000 £'000
In one year or less 240 238
In more than one year, but not more than 2 years - 227
-------- --------
240 465
--------- ---------
The provision for property dilapidation covers the estimated future costs
required to meet obligations under property leases to redecorate and repair
property.
19. Share capital
2017 2016
Ordinary shares of 1p each
Issued, called up and fully paid:
Number 15,489,579 15,149,579
Nominal value £154,896 £151,496
During the year 340,000 1p ordinary shares were issued as a result of the exercise by employees of share options: Number Option price Increase in share capital Increase in share premium 55,000 14.0p £550 £7,150 285,000 13.5p £2,850 £35,625 ----------- ---------- ----------- 340,000 £3,400 £42,775 ----------- ---------- -----------
Increase in share premium
55,000
14.0p
£550
£7,150
285,000
13.5p
£2,850
£35,625
-----------
----------
-----------
340,000
£3,400
£42,775
-----------
----------
-----------
20. Share-based payments
At 31 March 2017, 878,000 options granted under employee share option schemes
remain outstanding:
Date option granted Number Exercise price Period options exercisable
7 August 2008 78,000 14.0p 7 August 2011 to 7 August 2018
23 September 2011 420,000 13.5p 23 September 2014 to 23 September 2021
18 September 2014 380,000 11.0p 18 September 2017 to 18 September 2024
Under the terms of the scheme, options vest after after a period of three
years continued employment and are subject to the following performance
condition:
In any financial year commencing at least one year after the date of grant,
the Company shall have achieved a positive basic earnings per share (subject
to adjustment to exclude identified exceptional items), as reported in its
audited annual accounts.
The options outstanding at 31 March 2017 had a weighted average remaining
contractual life of 5.5 years (2016: 6.1 years).
Options have been valued using the Black-Scholes option-pricing model. No
performance conditions were included in the fair value calculations.
There were no options granted during the year (2016: nil).
The total expense recognised in the year is £2,000 (2016: £4,000).
A reconciliation of option movements over the year to 31 March 2017 is shown
below:
2017 2016
Number of options Weighted average exercise price Number of options Weighted average exercise price
Pence Pence
Outstanding at start of year 1,268,000 12.8 1,476,000 17.4
Exercised (340,000) 13.6 - -
Forfeited (50,000) 12.6 (32,000) 15.5
Lapsed - - (176,000) 51.5
-------------- --------- -------------- ---------
Outstanding at end of year 878,000 12.5 1,268,000 12.8
-------------- --------- -------------- ---------
Exercisable at end of year 498,000 13.6 868,000 13.6
-------------- --------- -------------- ---------
There were 340,000 options exercised during the year. The above figures
include options held by Directors which are set out in the Directors'
Remuneration Report on page 22.
21. Commitments
The Group and Company had capital commitments totalling £nil at 31 March 2017
(31 March 2016: £nil).
The future aggregate minimum lease payments under non-cancellable operating
leases are:
2017 2016
£'000 £'000
Not later than 1 year 518 552
Later than 1 year and no later than 5 years 164 685
--------- ---------
682 1,237
--------- ---------
22. Related party transactions
The Group and Company rents two of its offices under contracts expiring in
2018. The current annual rents of £395,000 were fixed, by independent
valuation, at the last rent review in 2008. JC Rigg, a Director, has notified
the Board that he has a 50% beneficial interest in these contracts. The
balance owed at the year end was £nil (2016: £nil).
Key management comprises the Board of Directors and their remuneration is set
out in the Directors' Remuneration Report on page 18.
Five year record
Consolidated income statement
Years ended 31 March 2017 2016 2015 2014 2013
£'000 £'000 £'000 £'000 £'000
Revenue 30,912 28,317 23,482 19,702 18,880
Gross profit 5,000 4,236 3,325 2,863 2,704
Profit before tax 1,521 863 352 11 28
Tax credit 13 350 - - -
Profit after tax 1,534 1,213 352 11 28
Retained profit for the financial year 1,534 1,213 352 11 28
Basic earnings per share (pence) 10.08 8.01 2.32 0.07 0.18
--------- --------- --------- --------- ---------
Balance sheet
As at 31 March 2017 2016 2015 2014 2013
£'000 £'000 £'000 £'000 £'000
Non-current assets 503 483 236 210 233
Current assets 7,299 5,638 4,401 3,544 3,343
Current liabilities (4,118) (3,757) (3,387) (2,705) (2,513)
Non-current liabilities (45) (308) (411) (570) (665)
_____ _____ _____ _____ _____
Net assets 3,639 2,056 839 479 398
--------- --------- --------- --------- ---------
Share capital 155 151 151 151 151
Share premium account 605 562 562 562 562
Capital redemption reserve 104 104 104 104 104
Retained earnings 2,775 1,239 22 (338) (419)
_____ _____ _____ _____ _____
Equity shareholders' funds 3,639 2,056 839 479 398
--------- --------- --------- --------- ---------
Shareholders' information and financial calendar
Share register
Equiniti maintain the register of members of the Company. If you have any
questions about your personal holding of the Company's shares, please
contact:
Equiniti
PO Box 4630
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6QQ
Telephone: 0870 6015366
If you change your name or address or if the details on the envelope enclosing
the report, including your postcode, are incorrect or incomplete, please
notify the registrar in writing.
Shareholders' enquiries
If you have an enquiry about the Group's business, or about something
affecting you as a shareholder (other than queries which are dealt with by the
registrar) you should contact the Company Secretary, by letter or telephone at
the Company's registered office.
Company Secretary and registered office:
Nick Burrows
Triad Group Plc
Weyside Park
Catteshall Lane
Godalming
Surrey
GU7 1XE
Telephone: 01908 860222
Email: investors@triad.co.uk
Website: www.triad.co.uk
Financial calendar
Annual General Meeting 23 August 2017
Final dividend: payment date Final dividend: record date 7 September 2017 11 August 2017
Financial year ended 31 March 2018:expected announcement of results
Half year November 2017
Full year June 2018
Corporate information
Executive Directors John Rigg, ChairmanNick BurrowsAdrian Leer Registered Auditors BDO LLP55 Baker StreetLondonW1U 7EU
Non-executive Directors Alistair FultonSteven Sanderson Brokers Arden Partners plc125 Old Broad StreetLondonEC2N 1AR
Secretary and registered office Nick BurrowsTriad Group PlcWeyside ParkCatteshall LaneGodalmingSurreyGU7 1XE Telephone: 01908 860222Email: investors@triad.co.ukWebsite: www.triad.co.uk Solicitors FreethsDavy AvenueKnowlhillMilton KeynesMK5 8HJ Bankers Lloyds Bank plcCity Office11-15 Monument StreetLondonEC3V 9JA
Country of incorporation and domicile of parent company United Kingdom Legal form Public limited company Registrars EquinitiAspect HouseSpencer RoadLancingWest SussexBN99 6DA
Company number 2285049
Bankers
Lloyds Bank plcCity Office11-15 Monument StreetLondonEC3V 9JA
Country of incorporation and domicile of parent company
United Kingdom
Legal form
Public limited company
Registrars
EquinitiAspect HouseSpencer RoadLancingWest SussexBN99 6DA
Company number
2285049
This information is provided by RNS
The company news service from the London Stock Exchange