REG - Victoria PLC - Interim Results <Origin Href="QuoteRef">VCP.L</Origin> - Part 2
28/11/2017 07:05
- Part 2: For the preceding part double click ID:nRSb6563Xa
Other segmental information
26 weeks ended 30 September 2017 26 weeks ended 1 October 2016
UK &Europe Australia Total UK &Europe Australia Total
£000 £000 £000 £000 £000 £000
Depreciation 4,911 1,513 6,424 4,612 1,217 5,829
Amortisation of acquisition intangibles 2,772 278 3,050 1,578 368 1,946
7,683 1,791 9,474 6,190 1,585 7,775
26 weeks ended 30 September 2017 26 weeks ended 1 October 2016
UK &Europe Australia Total UK &Europe Australia Total
£000 £000 £000 £000 £000 £000
Capital expenditure 6,047 890 6,937 5,092 938 6,030
4 Exceptional Items
26 Weeks 26 Weeks
ended ended
30 Sep 2017 1 Oct 2016
£000 £000
(a) Acquisition related costs 440 494
(b) Reorganisation costs 1,841 -----
Exceptional items 2,281 494
All exceptional items are classified within administrative expenses.
(a) Professional fees in connection with prospecting acquisitions during the period.
(b) Reorganisation costs comprise various fees incurred to date in relation to reviewing the Group's manufacturing and logistics operations, as well as other corporate restructuring.
5 Finance Costs
2017 2016
£000 £000
Interest payable on bank loans and overdrafts 1,675 1,253
Cash interest payable on BGF loan 500 500
Interest payable on Hire Purchase and Finance Leases 31 32
Total interest payable on loans 2,206 1,785
Amortisation of prepaid finance costs 306 202
Interest rolled up into BGF loan 97 72
Net interest expense on defined benefit pensions 138 57
Underlying interest costs 2,747 2,116
(a) BGF loan and option, redemption premium charge 115 90
(b) Unwinding of present value of deferred and contingent earn-out liabilities 1,261 1,317
(c) Mark to market adjustment on foreign exchange forward contracts (43) 63
4,080 3,586
(a) Non-cash annual cost of the redemption premium in relation to the BGF loan and option.
(b) Deferred and contingent consideration in respect to acquisitions is measured under IFRS 3, initially at fair value discounted for the time value of money. The present value is then remeasured at each half-year and year-end in relation to the unwind of this discount. In addition, any changes to contingent earn-outs arising from actual and forecast business performance are reflected. All such adjustments are non-cash items.
(c) Non-cash fair value adjustment on foreign exchange forward contracts.
6 Tax
2017 2016
£000 £000
Current tax
- Current year UK 1,594 2,392
- Current year overseas 2,075 1,187
3,669 3,579
Deferred Tax
- Credit recognised in the current year (839) (1,236)
- Adjustments in respect of prior years - 64
(839) (1,172)
Total tax charge 2,830 2,407
The overall effective corporation tax rate on underlying profit before tax is 22.9% (2016: 22.8%), representing the best estimate of the weighted average annual corporation tax rate expected for the full financial year.
7 Earnings per share
The calculation of the basic, adjusted and diluted earnings per share is based on the following data:
Basic Adjusted Basic Adjusted
2017 2017 2016 2016
£000 £000 £000 £000
Profit attributable to ordinary equity holders of the parent entity 5,956 5,956 5,974 5,974
Exceptional items:
Amortisation of acquired intangibles - 3,050 - 1,946
Acquisition related cost - 440 - 494
Reorganisation costs - 1,841 - -
BGF loan and option, redemption premium charge - 115 - 90
Deferred and contingent consideration fair value adjustments - 1,261 - 1,317
Mark to market adjustment on foreign exchange forward contracts - (43) - 63
Tax effect on adjusted items where applicable - (706) - (395)
Earnings for the purpose of basic and adjusted earnings per share 5,956 11,914 5,974 9,489
Weighted average number of shares
2017 2016
Numberof shares Numberof shares
(000's) (000's)
Weighted average number of shares for the purpose of basic and adjusted earnings per share 90,969 90,967
Effect of dilutive potential ordinary shares:
BGF share options 3,266 2,973
Weighted average number of ordinary shares for the purposes of diluted earnings per share 94,235 93,940
The potential dilutive effect of the share options has been calculated in accordance with IAS 33 using the average share price in the period.
The Group's earnings per share are as follows:
2017 2016
Pence Pence
Earnings per share
Basic adjusted earnings per share 13.10 10.43
Diluted adjusted earnings per share 12.64 10.10
Basic earnings per share 6.55 6.57
Diluted1 earnings per share 6.44 6.46
1 Earnings for the purpose of diluted (basic) earnings per share have been adjusted to add back the Business Growth Fund ('BGF') redemption premium charge as this cost is only incurred if the BGF share options are not exercised.
8 Rates of exchange
The results of the Group's overseas subsidiaries have been translated into Sterling at the average exchange rates prevailing during the periods. The balance sheets are translated at the exchange rates prevailing at the period ends:
26 Weeks 26 Weeks 52 weeks
ended ended ended
30 Sep 2017 1 Oct 2016 1 April 2017
Australia (A$) - average rate 1.6805 1.8196 1.7435
Australia (A$) - period end 1.7104 1.6942 1.6448
Euro (E) - average rate 1.1417 n.a 1.1785
Euro (E) - period end 1.1341 n.a 1.1777
9 Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance and the factors which mitigate these risks have not changed from those set out on page 11 of the Group's 2017 Annual Report, a copy of which is available on the Group's website - www.victoriaplc.com. The Chairman's Statement includes consideration of uncertainties affecting the Group in the remaining six
months of the year.
On behalf of the Board
Geoffrey Wilding
Chairman
27 November 2017
This information is provided by RNS
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