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Capital expenditure at the half year was GBP0.512m (2010: GBP0.037m), which included GBP0.204m taken on finance leases. Further capital commitments are in place for selective investments, and are scheduled to be completed during the third quarter.
In June 2011, to satisfy institutional demand, the Group sold 875,000 shares that it held in Treasury. This resulted in a cash inflow of GBP0.278m, net of fees, and helped to improve cash and equivalents to GBP2.061m at the half year, an increase of GBP0.747m (57%) over the 30 September 2010 balance of GBP1.314m.
At the half year, the Group delivered a consolidated net cash position of GBP0.072m, compared to a net debt position at 30 September 2010 of GBP0.551m and at 31 March 2011 of GBP0.061m.
The Group continually reviews its borrowings facilities and requirements, and on 30 September 2011 gave notice to its bankers of the intention to repay, in full, its term loan which was not due to be fully repaid until August 2012. As a result, on 20 October 2011 the Group completed the full repayment of its term loan facility through a payment of GBP250k.
Balance Sheet
The total assets of the Group increased to GBP13.543m (2010: GBP11.609m) at the half year, driven primarily by increases in capital expenditure, a strong cash and equivalents balance, and higher trade receivables.
At the half year working capital had increased to GBP4.448m (2010: GBP3.840m). As already indicated this was as a result of an increase in trade debtors, as well as the continued programme of sourcing key components from low cost sources. Encouragingly, inventory fell to GBP3.020m on the higher volumes compared to a 30 September 2010 balance of GBP3.266m.
Half year net cash was GBP0.072m, compared to a net debt position at 30 September 2010 of GBP0.551m. With the term loan appearing in current liabilities at the half year, the Group's remaining long term borrowings of GBP0.164m relate to assets under finance lease.
Outlook
We have been encouraged by the progress made in the period with the Group benefiting from its exposure to global markets, increased account penetration and continued focus on operational excellence. With a strong and improving balance sheet we remain ideally positioned to invest in opportunities to develop the Group further.
The Board is confident in meeting market expectations for the year.
Nick Paul CBE Mike Welburn
Chairman Chief Executive
Group statement of comprehensive income
For period ended 30 September 2011
All of the activities of the Group are classed as continuing.
Note Unaudited Unaudited Audited
Six months to Six months to Year Ended
30 September 30 September 31 March
2011 2010 2011
GBP000 GBP'000 GBP'000
Revenue 3 12,420 10,090 21,764
Cost of sales (8,400) (6,876) (14,845)
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Gross profit 4,020 3,214 6,919
Distribution costs (516) (460) (925)
Administration costs (2,719) (2,235) (4,796)
Operating profit before intangible amortisation, fair value
adjustments for foreign exchange
contracts and share based payment charge 3 785 519 1,198
Intangible asset amortisation (59) (59) (117)
Share based payment charge (26) (36) (44)
Fair value credit/(charge) relating to foreign exchange contracts 31 - (11)
Operating profit 3 731 424 1,026
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Finance income 2 2 5
Finance costs (48) (75) (104)
Profit before tax 685 351 927
Income tax expense (175) (107) (240)
Profit for the year and total comprehensive income 510 244 687
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Attributable to:
Equity holders of the parent company 510 244 687
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Earnings per share:
Basic earnings per share 4 1.55p 0.76p 2.14p
Diluted earnings per share 4 1.51p 0.76p 2.12p
Group statement of changes in equity
For period ended 30 September 2011
Share
based Invest-ment Profit
Share Share Merger payment in own and loss
capital premium reserve reserve shares account Total
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GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
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Balance at 1 April 2010 3,302 1,448 1,388 193 (49) (1,504) 4,778
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(audited)
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Share based payment
charge - - - 36 - - 36
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Comprehensive income - - - - - 244 244
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Balance at 30 September
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