REG - Victoria PLC - Preliminary Results <Origin Href="QuoteRef">VCP.L</Origin> - Part 2
25/07/2017 07:06
- Part 2: For the preceding part double click ID:nRSY9499La
Group's budgets, projections and funding requirements, and taking account of reasonable possible
changes in trading performance, the Directors believe they have reasonable grounds for stating that the Group has adequate
resources to continue in operational existence for the foreseeable future.
The Directors are of the view that the Group is well placed to manage its business risks. Accordingly, the Directors
continue to adopt the going concern basis in preparing the Annual Report and Accounts.
Michael Scott
Group Finance Director
24 July 2017
Financial Statements
Consolidated Income Statement
For the 52 weeks ended 1 April 2017
52 weeks ended 1 April 2017 53 weeks ended 2 April 2016
Underlying Non- Reported Underlying Non- Reported
performance underlying numbers performance underlying numbers
items items
Notes £000 £000 £000 £000 £000 £000
Continuing Operations
Revenue 1 330,406 - 330,406 255,174 - 255,174
Cost of Sales (220,791) - (220,791) (169,930) (249) (170,179)
Gross profit 109,615 - 109,615 85,244 (249) 84,995
Distribution costs (54,886) - (54,886) (49,852) (157) (50,009)
Administrative expenses (including intangible amortisation) (21,507) (7,036) (28,543) (13,753) (3,787) (17,540)
Other operating income 445 - 445 292 - 292
Operating profit/(loss) 33,667 (7,036) 26,631 21,931 (4,193) 17,738
Comprising:
Operating profit before non-underlying and exceptional items 1 33,667 - 33,667 21,931 - 21,931
Amortisation of acquired intangibles - (4,432) (4,432) - (2,315) (2,315)
Exceptional items 1, 2 - (2,604) (2,604) - (1,878) (1,878)
Finance Costs 3 (4,259) (3,598) (7,857) (3,714) (4,734) (8,448)
Comprising:
Interest payable on loans 3 (3,555) - (3,555) (3,225) - (3,225)
Amortisation of prepaid finance costs 3 (419) - (419) (226) (228) (454)
Interest accrued on BGF loan 3 (169) (202) (371) (199) (180) (379)
Net interest expense on defined benefit pensions 3 (116) - (116) (64) - (64)
Other non-underlying finance costs 3 - (3,396) (3,396) - (4,326) (4,326)
Profit/(loss) before tax 29,408 (10,634) 18,774 18,217 (8,927) 9,290
Taxation (6,437) 255 (6,182) (4,302) 961 (3,341)
Profit/(loss) for the period from continuing operations 22,971 (10,379) 12,592 13,915 (7,966) 5,949
Profit (loss) from discontinued operations - - - - (2,132) (2,132)
Profit/(loss) for the period 22,971 (10,379) 12,592 13,915 (10,098) 3,817
Earnings per share from continuing basic 4 13.84 7.22
operations - pence
diluted 4 13.60 7.11
Earnings per share - pence basic 4 13.84 4.63
diluted 4 13.60 4.60
Consolidated Statement of Comprehensive Income
For the 52 weeks ended 1 April 2017
52 weeks ended 53 weeks ended
1 April 2017 2 April 2016
£000 £000
Profit for the period 12,592 3,817
Other comprehensive income/(expense):
Items that will not be reclassified to profit or loss:
Actuarial losses on defined benefit pension scheme (7,846) (152)
Increase in deferred tax asset relating to pension scheme liability 1,448 53
Items that will not be reclassified to profit or loss (6,398) (99)
Items that may be reclassified subsequently to profit or loss:
Retranslation of overseas subsidiaries 1,943 708
Items that may be reclassified subsequently to profit or loss 1,943 708
Other comprehensive (expense)/income (4,455) 609
Total comprehensive income for the year attributable to the owners of the parent 8,137 4,426
Consolidated Balance Sheet
As at 1 April 2017
Group
1 April 2017 2 April 2016
Notes £000 £000
Non-current assets
Goodwill 59,830 37,205
Intangible assets other than goodwill 66,320 43,476
Property, plant and equipment 41,826 38,811
Investment property 180 180
Investments in subsidiaries - -
Trade and other non-current receivables - -
Deferred tax assets 4,986 3,287
Total non-current assets 173,142 122,959
Current assets
Inventories 73,062 58,970
Trade and other receivables 55,076 42,946
Cash at bank and in hand 27,979 19,078
Total current assets 156,117 120,994
Total assets 329,259 243,953
Current liabilities
Trade and other current payables 82,873 66,913
Current tax liabilities 4,260 2,891
Other financial liabilities 617 596
Total current liabilities 87,750 70,400
Non-current liabilities
Trade and other non-current payables 19,855 11,524
Other non-current financial liabilities 116,086 78,522
Deferred tax liabilities 15,190 9,129
Retirement benefit obligations 6 11,086 3,345
Total non-current liabilities 162,217 102,520
Total liabilities 249,967 172,920
Net assets 79,292 71,033
Equity
Share capital 4,548 4,548
Share premium 52,472 52,462
Retained earnings 16,451 10,257
Foreign exchange reserve 5,027 3,084
Other reserves 794 682
Total Equity 79,292 71,033
Consolidated Statement of Changes in Equity
For the 52 weeks ended 1 April 2017
Share Share Retained Foreign Other Total
capital premium earnings exchange reserves equity
reserve
£000 £000 £000 £000 £000 £000
At 29 March 2015 3,639 10,144 6,539 2,376 682 23,380
Profit for the period to 2 April 2016 - - 3,817 - - 3,817
Other comprehensive profit for the period - - (99) - - (99)
Retranslation of overseas subsidiaries - - - 708 - 708
Total comprehensive profit - - 3,718 708 - 4,426
Issue of share capital 909 42,318 - - - 43,227
Transactions with owners 909 42,318 - - - 43,227
At 2 April 2016 4,548 52,462 10,257 3,084 682 71,033
Profit for the period to 1 April 2017 - - 12,592 - - 12,592
Other comprehensive loss for the period - - (6,398) - - (6,398)
Retranslation of overseas subsidiaries - - - 1,943 - 1,943
Total comprehensive profit - - 6,194 1,943 - 8,137
Issue of share capital - 10 - - - 10
Share-based payment charge - - - - 112 112
Transactions with owners - 10 - - 112 122
At 1 April 2017 4,548 52,472 16,451 5,027 794 79,292
Consolidated Statement of Cash Flows
For the 52 weeks ended 1 April 2017
Group
52 weeks ended 53 weeks ended
1 April 2017 2 April 2016
£000 £000
Cash flows from operating activities
Operating profit from continuing operations 26,631 17,738
Adjustments For:
Depreciation charges 12,039 10,347
Amortisation of intangible assets 4,432 2,315
Goodwill adjustment - (43)
Asset impairment 17 160
Amortisation of government grants (233) (269)
Profit on disposal of property, plant and equipment (40) (143)
Share-based employee remuneration 112 -
Defined benefit pension (221) 166
Net cash flow from operating activities before movements in working capital 42,737 30,271
Change in inventories (445) (7,767)
Change in trade and other receivables (5,919) 215
Change in trade and other payables 4,752 7,731
Cash generated by continuing operations 41,125 30,450
Interest paid (3,554) (3,243)
Income taxes paid (5,792) (3,243)
Net cash flow from discontinued operations - 65
Net cash inflow from operating activities 31,779 24,029
Investing activities
Purchases of property, plant and equipment (9,422) (9,752)
Loan to subsidiary companies - -
Proceeds on disposal of property, plant and equipment 215 1,034
Deferred consideration and earn-out payments (10,314) (7,453)
Acquisition of subsidiaries net of cash acquired (37,798) (19,265)
Proceeds from disposal of discontinued operations - 431
Net cash used in investing activities (57,319) (35,005)
Financing activities
Increase/(decrease) in long terms loans 34,283 (4,573)
Issue of share capital 10 43,043
Repayment of obligations under finance leases / hire purchase (934) (650)
Net cash generated in financing activities 33,359 37,820
Net increase in cash and cash equivalents 7,819 26,844
Cash and cash equivalents at beginning of period 19,078 (8,502)
Effect of foreign exchange rate changes 1,082 736
Cash and cash equivalents at end of period 27,979 19,078
Comprising:
Cash at bank and in hand 27,979 19,078
Bank overdrafts - -
27,979 19,078
Notes
1. Segmental information
The Group is organised into two operating divisions, the sale of floorcovering products in the UK & Europe and Australia.
Geographical segment information for revenue, operating profit and a reconciliation to entity net profit is presented below.
Income statement
52 weeks ended 1 April 2017 53 weeks ended 3 April 2016
UK & Australia Unallocated Total UK & Australia Unallocated Total
Europe central Europe central
expenses expenses
£000 £000 £000 £000 £000 £000 £000 £000
Revenue from continuing operations 241,748 88,658 - 330,406 196,908 58,266 - 255,174
Underlying operating profit 26,218 8,238 (789) 33,667 18,183 4,958 (1,210) 21,931
Non-underlying operating items (3,573) (859) - (4,432) (1,890) (425) - (2,315)
Exceptional operating items (816) (481) (1,307) (2,604) (1,311) (251) (316) (1,878)
Operating profit from continuing operations 21,829 6,898 (2,096) 26,631 14,982 4,282 (1,526) 17,738
Underlying finance costs (4,259) (3,714)
Non-underlying finance costs (3,598) (4,734)
Profit before tax from continuing operations 18,774 9,290
Tax (6,182) (3,341)
Profit after tax from continuing operations 12,592 5,949
Loss from discontinued operations - (2,132)
Profit for the period 12,592 3,817
* The prior year loss from discontinued operations relates to the disposal of Westwood Yarns Limited, which was sold on 2 October 2015.
Management information is reviewed on a segmental basis to operating profit.
During the year, no single customer accounted for 10% or more of the Group's revenue. Inter-segment sales in the year and in the prior year between the UK & Europe and Australia were immaterial.
Balance sheet
52 weeks ended 1 April 2017 53 weeks ended 3 April 2016
UK & Australia Total UK & Australia Total
Europe Europe
£000 £000 £000 £000 £000 £000
Total assets 276,954 52,304 329,259 205,654 38,299 243,953
Total liabilities (216,293) (33,673) (249,967) (148,822) (24,098) (172,920)
Net assets 60,661 18,631 79,292 56,832 14,201 71,033
The Group's non-current assets as at 1 April 2017 of £173,142,000 (2016: £122,959,000) are split geographically as follows: £130,404,000 in the UK & Europe (2016: £102,170,000) and £42,738,000 in Australia (2016: £20,789,000).
Materially all revenue and non-current assets in the UK & Europe segment relate to the UK other than goodwill and intangible assets relating to the acquisition disclosed in note 7(c).
Other segmental information
52 weeks ended 1 April 2017 53 weeks ended 3 April 2016
UK & Australia Total UK & Australia Total
Europe Europe
£000 £000 £000 £000 £000 £000
Depreciation (from continuing operations) 9,305 2,734 12,039 8,314 2,033 10,347
Amortisation of acquisition intangibles 3,573 859 4,432 1,890 425 2,315
12,878 3,593 16,471 10,204 2,458 12,662
52 weeks ended 1 April 2017 53 weeks ended 3 April 2016
UK & Australia Total UK & Australia Total
Europe Europe
£000 £000 £000 £000 £000 £000
Capital expenditure (from continuing operations) 9,361 1,864 11,225 8,961 1,242 10,203
2. Exceptional and non-underlying items from continuing operations
2017 2016
£000 £000
(a) Acquisition and disposal related costs (2,109) (1,355)
(b) Reorganisation costs (331) (406)
(c) Negative goodwill arising on acquisition - 43
(d) Asset impairment (17) (160)
(e) Preference payment claim (147) -
Exceptional items (2,604) (1,878)
All exceptional items are classified within administrative expenses.
(a) Professional fees in connection with prospecting and completing acquisitions during the year.
(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.
(c) Credit of £43,000 in the prior year in relation to negative goodwill arising on the acquisition of A&A Carpets.
(d) Figure in 2017 relates to impairment of capitalised facility costs. The prior year figure was previously included within other non-underlying items.
(e) Potential preference payment claim in respect of an Australian customer that has gone into administration.
3. Finance costs
2017 2016
£000 £000
Interest payable on bank loans and overdrafts 2,493 2,145
Cash interest payable on BGF loan 1,000 1,000
Interest payable on Hire Purchase and Finance Leases 62 80
Total interest payable on loans 3,555 3,225
Amortisation of prepaid finance costs 419 226
Interest rolled up into BGF loan 169 199
Net interest expense on defined benefit pensions 116 64
Underlying interest costs 4,259 3,714
(a) Release of prepaid finance costs - 228
(b) BGF loan and option, redemption premium charge 202 108
(c) Unwinding of present value of contingent earn-out liabilities 1,776 1,387
(c) Unwinding of present value of deferred consideration liabilities 413 257
(c) Other fair value adjustments to contingent earn-out liabilities 1,616 2,581
(d) Mark to market adjustment on foreign exchange forward contracts (15) 136
(e) Mark to market adjustment on interest rate swap contracts 4 36
(f) Retranslation of foreign currency loans (398) -
7,857 8,448
(a) Non-cash charge in the prior year relating to the release of the prepaid costs on the previous bank facilities, which were refinanced in April 2015.
(b) Non-cash annual cost of the redemption premium in relation to the BGF loan and option.
(c) 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 re-measured 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.
(d) Non-cash fair value adjustment on foreign exchange forward contracts.
(e) Non-cash fair value adjustment on an interest rate swap contract.
(f) Net impact of exchange rate movements on third party and intercompany loans.
4. 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 from continuing operations 12,592 12,592 5,949 5,949
Exceptional items:
Amortisation of acquired intangibles - 4,432 - 2,315
PPE impairment - 17 - 160
Preference payment claim - 147 - -
Acquisition and disposal related cost - 2,109 - 1,355
Reorganisation costs - 331 - 406
Negative goodwill arising on acquisition - - - (43)
Release of prepaid finance costs - - - 228
BGF loan and option, redemption premium charge
- More to follow, for following part double click ID:nRSY9499LcRecent news on Victoria
See all newsREG - Victoria PLC - Holding(s) in Company
AnnouncementREG - Victoria PLC - Purchase of Own Shares
AnnouncementREG - Victoria PLC - Purchase of Own Shares
AnnouncementREG - Victoria PLC - Purchase of Own Shares
AnnouncementREG - Victoria PLC - Purchase of Own Shares
Announcement