REG-XP Power Ltd: Half-yearly Report <Origin Href="QuoteRef">XPP.L</Origin> - Part 2
27/07/2015 07:00
- Part 2: For the preceding part double click ID:nPRrRB81Ba
(Unaudited) (Unaudited)
Gross research and development expenditure 3.1 2.6
Development expenditure capitalised (1.4) (1.2)
Amortisation of development expenditure 0.9 0.7
capitalised
Net research and development expenditure 2.6 2.1
1. Taxation
Income tax expense is recognised based on management's best estimate of
the weighted average annual income tax expected for the full financial year.
The estimated effective annual tax rate used for 2015 is 24.1% (2014: 20%).
£ Millions Six months ended Six months ended
30 June 2015 30 June 2014
(Unaudited) (Unaudited)
Singapore corporation tax 1.0 0.7
Overseas corporation tax 2.0 1.7
Total taxation 3.0 2.4
1. Dividends
Amounts recognised as distributions to equity holders of the Company in
the period:
Six months ended Six months ended
30 June 2015 30 June 2014
(Unaudited) (Unaudited)
Pence per £ Millions Pence £ Millions
share per
share
Prior year 3rd quarter 14.0 2.6 13.0 2.5
dividend paid
Prior year final dividend 22.0 4.2 19.0 3.6
paid
Total 36.0 6.8 32.0 6.1
The dividends paid recognised in the interim financial statements relate to the
third quarter and final dividends for 2014.
The first quarterly dividend of 13 pence per share (2014: 12 pence) was paid on
9 July 2015. A second quarterly dividend of 14 pence per share (2014: 13 pence)
will be paid on 8 October 2015 to shareholders on the register at 11 September
2015.
1. Earnings per share
Earnings per share attributable to equity holders of the company arise
from continuing operations as follows:
£ Millions Six months Six months
ended ended
30 June 2015 30 June 2014
(Unaudited) (Unaudited)
Earnings
Earnings for the purposes of basic and
diluted earnings per share (profit for the
period attributable to equity shareholders 9.6 9.7
of the company)
Earnings for adjusted earnings per share 9.6 9.7
Number of shares '000 '000
Weighted average number of shares for the
purposes of basic earnings per share 18,998 19,000
(thousands)
Effect of potentially dilutive share options 177 209
(thousands)
Weighted average number of shares for the
purposes of dilutive earnings per share 19,175 19,209
(thousands)
Earnings per share from operations
Basic 50.5p 51.1p
Diluted 50.1p 50.5p
1. Intangible assets
Intangible assets comprises development expenditure capitalised when it meets
the criteria laid out in IAS 38, "Intangible Assets", trademarks and
non-contractual customer relationships.
1. Cash and cash equivalents
For the purpose of presenting the consolidated cash flow statement, the
consolidated cash and cash equivalents comprise the following:
£ Millions Six months ended Six months ended
30 June 2015 30 June 2014
(Unaudited) (Unaudited)
Cash and bank balances 3.9 5.6
Less: Bank overdrafts (4.3) (1.8)
Cash and cash equivalents per
consolidated cash flow statement (0.4) 3.8
Reconciliation to free cash flow:
Net cash inflow from operating 8.5 10.4
activities
Development expenses capitalised (1.4) (1.2)
Finance cost (0.1) (0.1)
Free cash flow 7.0 9.1
1. Borrowings, bank loans and overdraft
£ Millions 30 June 2015 31 December 2014 30 June 2014
(Unaudited)
(Unaudited)
Current 4.3 2.5
7.1
Total 4.3 2.5
7.1
1. Currency Impact
We report in Pounds Sterling (GBP) but have significant revenues and costs as
well as assets and liabilities that are denominated in United States Dollars
(USD). The table below sets out the prevailing exchange rates in the periods
reported.
First half First half % 30 June 31 December 30 June
2015 2014 Change 2015 2014 2014
Average Average Period end Period end Period end
USD/GBP 1.52 1.67 (8.6%) 1.57 1.56 1.69
EUR/GBP 1.35 1.21 11.5% 1.40 1.28 1.25
Approximately 62% of the Group's revenues are invoiced in USD so the change in
the USD to GBP exchange rate has a significant effect on reported revenue in
GBP. However, as the majority of our cost of goods sold and operating expenses
are also denominated in USD the change in profit before tax with the USD to GBP
exchange rate is relatively minor. The impact of changes in the key exchange
rates from the first half of 2014 to the first half of 2015 are summarised as
follows:
£ Millions USD EUR
Impact on revenues 2.9 (1.3)
Impact on profit before tax 0.7 (0.3)
Impact on net debt (0.2) -
1. Risks and uncertainties
Like many other international businesses the Group is exposed to a number of
risks and uncertainties which might have a material effect on its financial
performance. These include:
Fluctuations in foreign currency
The Group has an exposure to foreign currency fluctuations. This could lead to
material adverse movements in reported earnings.
Dependence on key personnel
The future success of the Group is substantially dependent on the continued
services and continuing contributions of its Directors, senior management and
other key personnel.
Loss of key customers/suppliers
The Group is dependent on retaining its key customers and suppliers. However,
for the six months ended 30 June 2015, no one customer accounted for more than
6% of revenue.
Shortage, non-availability or technical fault with regard to key electronic
components
The Group is reliant on the supply, availability and reliability of key
electronic components. If there is a shortage, non availability or technical
fault with any of the key electronic components this may impair the Group's
ability to operate its business efficiently and lead to potential disruption to
its operations and revenues.
Fluctuations of revenues, expenses and operating results
The revenues, expenses and operating results of the Group could vary
significantly from period to period as a result of a variety of factors, some
of which are outside its control.
Information Technology Systems
The business of the Group relies to a significant extent on information
technology systems used in the daily operations of its operating subsidiaries.
Any failure or impairment of those systems or any inability to transfer data
onto any new systems introduced could cause a loss of business and/or damage to
the reputation of the Group together with significant remedial costs.
Risks relating to taxation of the Group
The Group is exposed to corporation tax payable in many jurisdictions. The
effective tax rate of the Group is affected by where its profits fall
geographically. The Group effective tax rate could therefore fluctuate over
time. This could have an impact on earnings and potentially its share price.
Further, the Group's tax position includes judgments about past and future
events and relies on estimates and assumptions.
1. Directors' responsibility statement
The interim results were approved by the board of directors on 27 July
2015.
The directors confirm that to the best of their knowledge that:
* This unaudited interim results has been prepared in accordance with IAS 34
"Interim Reporting" as adopted by the European Union; and
* The interim results includes a fair view of the information required by DTR
4.2.7 (indication of important events during the first six months and
description of principal risks and uncertainties for the remaining six
months of the year) and DTR 4.2.8 (disclosure of related party transactions
and changes therein).
The directors of XP Power Limited are as listed in the Company's 2014 Annual
Report.
END
Copyright © 2015 PR Newswire Association, LLC. All Rights ReservedRecent news on XP Power
See all newsREG-XP Power Ltd: Result of AGM
AnnouncementREG-XP Power Ltd: Q1 Trading Update
AnnouncementREG-XP Power Ltd: Annual Financial Report
AnnouncementREG-XP Power Ltd: Holding(s) in Company
AnnouncementREG-XP Power Ltd: Holding(s) in Company
Announcement