REG - Wilmington PLC - Interim Results <Origin Href="QuoteRef">WIL.L</Origin> - Part 3

WilmingtonAnnouncement

22/02/2018 07:06

- Part 3: For the preceding part double click  ID:nRSV5853Fb 

49,500      
 
 
On 20 September 2017, 166,099 ordinary shares were issued in respect of the
vesting of the 2014 PSP Share Awards to employees (including Directors). 
 
At 31 December 2017, 46,584 shares (2016: 46,584) were held in Treasury, which
represents 0.1% (2016: 0.1%) of the called up share capital of the Company. 
 
17.               Cash generated from operations 
 
                                                                               Six months ended 31 December 2017  Six months ended 31 December 2016  Year ended 30 June  
                                                                                                                                                      2017               
                                                                               (unaudited)                        (unaudited)                        (audited)           
                                                                               £'000                              £'000                              £'000               
                                                                                                                                                                         
 Profit from continuing operations before income tax                           2,039                              5,031                              15,862              
 Gain on sale of leasehold property                                            -                                  -                                  (6,333)             
 Adjusting items - excluding depreciation of property plant and equipment      3,094                              947                                3,468               
 Adjusting items - depreciation of property, plant and equipment               432                                -                                  -                   
 Depreciation of property, plant and equipment included in operating expenses  399                                493                                1,071               
 Amortisation of intangible assets                                             4,060                              3,275                              7,193               
 Impairment of goodwill and intangible assets                                  -                                  -                                  2,366               
 (Profit)/loss on disposal of property, plant and equipment                    (3)                                8                                  (20)                
 Share based payments (including social security costs)                        338                                310                                552                 
 Finance costs                                                                 986                                915                                1,961               
 Operating cash flows before movements in working capital                      11,345                             10,979                             26,120              
 Decrease/(increase) in trade and other receivables                            968                                (3,614)                            (1,997)             
 (Decrease)/increase in trade and other payables                               (4,585)                            597                                2,530               
 Cash generated from operations before adjusting items                         7,728                              7,962                              26,653              
 
 
Cash conversion is calculated as a percentage of cash generated by operations
to Adjusted EBITA as follows: 
 
                                                                               Six months ended 31 December 2017(unaudited)£'000  Six months ended 31 December 2016(unaudited)£'000  Year ended 30 June   2017(audited)£'000  
 Funds from operations before adjusting items:                                                                                                                                                                                
 Adjusted EBITA                                                                9,958                                              9,713                                              23,352                                   
 Share based payments (including social security costs)                        338                                                310                                                552                                      
 Amortisation of intangible assets - computer software                         653                                                455                                                1,165                                    
 Depreciation of property, plant and equipment included in operating expenses  399                                                493                                                1,071                                    
 (Profit)/loss on disposal of property, plant and equipment                    (3)                                                8                                                  (20)                                     
 Operating cash flows before movements in working capital                      11,345                                             10,979                                             26,120                                   
 Net working capital movement                                                  (3,617)                                            (3,017)                                            533                                      
 Funds from operations before adjusting items                                  7,728                                              7,962                                              26,653                                   
 Cash conversion                                                               78%                                                82%                                                114%                                     
                                                                                                                                                                                                                              
 Free cash flows:                                                                                                                                                                                                             
 Operating cash flows before movement in working capital                       11,345                                             10,979                                             26,120                                   
 Proceeds on disposal of property, plant and equipment                         31                                                 21                                                 43                                       
 Net working capital movement                                                  (3,617)                                            (3,017)                                            533                                      
 Interest paid                                                                 (1,027)                                            (880)                                              (1,656)                                  
 Tax paid                                                                      (2,518)                                            (1,996)                                            (3,905)                                  
 Purchase of property, plant and equipment                                     (2,860)                                            (579)                                              (1,300)                                  
 Purchase of intangible assets                                                 (1,047)                                            (888)                                              (1,599)                                  
 Free cash flows                                                               307                                                3,640                                              18,236                                   
 
 
18.               Related party transactions 
 
The Company and its wholly owned subsidiary undertakings offer certain
Group-wide purchasing facilities to the Company's other subsidiary
undertakings whereby the actual costs are recharged. 
 
The Chief Executive Officer, Pedro Ros, owns a minority shareholding in SMARP
OY (a company incorporated in Finland) which provides ongoing social media
services to the Group, invoiced on an annual basis. SMARP UK Limited, a
subsidiary of SMARP OY, invoiced £nil (2016: £nil) during the period. 
 
Close family members of key management personnel provided services to the
Group during the period for lecturing and photography. The total invoiced for
these services was £40,466 (2016: £120). 
 
19.               Seasonality 
 
The Group has traditionally generated the majority of its revenues and profits
during the second half of the financial year. This has historically resulted
from two factors. Firstly, most of the Group's businesses (the notable
exception being AMT) produce seasonally low sales in July, August and December
which include holiday periods for many of the Group's clients. Secondly,
Inese, Compliance Week, FRA and HSJ, have major annual events in the second
half of the year. 
 
20.               Events after the reporting period 
 
Acquisition - Interactive Medica, S.L. 
 
On 12 February 2018 Wilmington Insight Limited (a wholly owned indirect
subsidiary of Wilmington plc) acquired the entire share capital of the
Interactive Medica, S.L. group of companies ('IM'). IM is a pan-European
provider of cloud-based insight, CRM and KAM offerings to the pharmaceutical
industry. The Group acquired IM from its founding management team, who will
continue in the business. The initial consideration is E2.8m (£2.4m) with an
adjustment for working capital payable on completion. Further deferred
consideration of up to E1.6m (£1.4m), conditional upon the continued
employment of a key member of the management team and subject to IM achieving
revenue targets, for the periods to 31 December 2018 and 31 December 2019 is
payable in the future. IM was acquired with E0.6m (£0.5m) of cash. 
 
The initial consideration has been financed out of the extended £75.0m
multi-currency revolving credit facility. The process of fair valuing IM has
not been completed at the date of these financial statements. Subject to this
process to fair value, the Group acquired intangible assets that include the
IM brand, technology and customer relationships. The excess consideration
above the fair value of these acquired net assets and will be recognised as
goodwill and intangible assets following completion of the exercise to fair
value. All amounts are disclosed as provisional. 
 
Statement of Directors' Responsibilities 
 
The Directors confirm that, to the best of their knowledge, the Interim
Information has been prepared in accordance with International Accounting
Standard 34 Interim Financial Reporting as adopted by the European Union. The
Interim Management Report includes a fair review of the Interim Information
and, as required by DTR 4.2.7R and DTR 4.2.8R, the following information: 
 
·      an indication of important events that have occurred during the first
six months of the financial year, and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and 
 
·      disclosure of material related party transactions that have taken place
in the first six months of the current financial year and of any material
changes in the related party transactions described in the last Annual Report
and Financial Statements. 
 
A list of current Directors is maintained on the Wilmington plc website:
wilmingtonplc.com. 
 
By order of the Board 
 
Anthony Foye 
 
Chief Financial Officer 
 
21 February 2018 
 
This information is provided by RNS
The company news service from the London Stock Exchange