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TIDMAVS
RNS Number : 4102V
Avesco Group PLC
12 January 2012
EMBARGOED UNTIL 7.00am, 12 January 2011
AVESCO GROUP plc
Preliminary Results for the year ended 30 September 2011
Avesco Group plc ("Avesco" or the "Group") (AIM: AVS), the international provider of services to the corporate presentation, entertainment and broadcast markets, announces its preliminary results for the year ended 30 September 2011.
KEY HIGHLIGHTS
-- Revenue up 7% to GBP125.5m (2010: GBP117.2m)
-- Trading EBITDA of GBP20.3m (2010: GBP19.7m)*
-- Trading profit of GBP2.3m (2010: GBP1.3m)*
-- Operating profit of GBP1.5m (2010: loss of GBP0.8m)
-- Adjusted basic earnings per share of 2.6p (2010: losses per share of 1.2p)*
-- Net cash inflow of GBP1.7m (2010: GBP7.4m)
-- Final dividend tripled to 3.0p per share (2010: 1.0p)
* As described in note 8, the Group uses certain non-GAAP alternative measures to assess underlying operating performance.
Ian Martin, Chief Executive, commented:
"The 12 months ended 30 September 2011 have witnessed another period of strong growth for the Avesco Group. This performance reflects various strategic decisions and actions that we have taken over the last few years to develop the Group to meet the challenges and requirements of a global economy with a more international spread of customers and events across the globe.
Moving forward into 2012, we have good reason to believe it will be a year of significant progress for the Group. Although the economic conditions look uncertain, we have substantial forward momentum and the additional benefit of many large events this year.
Our strategy continues to be centred around the organic growth and development of the business. Since 2005, the Group has grown revenues at around 15% annually while maintaining a strong, conservative financial structure with modest levels of debt.
Longer term, we believe that Avesco is well placed to meet any of the shifts in our market and to continue to grow by building on our international network, adding additional services, retaining our culture, maintaining a strong balance sheet and never forgetting to give our customers a world-class service."
For further information please contact:
Avesco Group plc
Ian Martin, Chief Executive Tel: 01293 583400
John Christmas, Finance
Director
FinnCap
Ed Frisby, Corporate Finance Tel: 020 7220 0500
Brian Patient/Victoria Bates,
Corporate Broking
Avesco Group plc
Chairman's statement
Introduction
I am pleased to report that as we look back on 2011, the Avesco Group has made considerable progress. Our businesses are widely regarded as market leaders in their fields, increasingly providing our services at some of the most high profile events around the world and boasting a high quality customer base, including many blue chip corporations, major production companies and event organisers. Of course, good companies never stop innovating, adapting and growing, even through difficult economic times, and while there is still much hard work ahead, we are confident that we are positioning Avesco for further improvement and success.
Results
Our progress is reflected in these financial results which show a greatly improved performance. The Group grew revenue, improved margins, increased profitability, generated cash and reduced debt, all of which were achieved after a significant investment in the Group's operations and equipment.
During the twelve months ended 30 September 2011, our revenue grew 7% to GBP125.5m (2010: GBP117.2m). If allowance is made for the fact that, in contrast to 2010, 2011 did not benefit from the inclusion of the Winter Olympics or the FIFA World Cup, a truer comparison would show that the underlying business has achieved a like-for-like growth in revenue of over 15%.
The trading profit (which excludes the amortisation of acquired intangible assets, restructuring costs, and other non-recurring costs) rose 82% to GBP2.3m (2010: GBP1.3m). The trading profit less interest and current tax was GBP0.7m (2010: loss GBP0.3m) and on this basis, the basic earnings per share rose to 2.6p.
The Group produced a 3% improvement in EBITDA to GBP20.3m (2010: GBP19.7m). Cash generation remained a key focus and, despite a cash investment of GBP18.0m (2010: GBP13.8m) in new equipment to support future growth, the Group generated GBP1.7m in cash during the year. As a result the net debt at the year-end reduced to GBP12.1m (2010: GBP13.7m), resulting in a further strengthening of the Group's financial position. Gearing (being net debt divided by net assets) also fell to 33% (2010: 37%). On 30 September 2011, the net assets of the Group were GBP37.1m (2010: GBP37.3m) or GBP1.46 per share (2010: GBP1.49).
Dividend
The Board is pleased to announce that it proposes to increase the dividend to 3.0p per share (2010: 1.0p) and it is our current intention to reintroduce an interim dividend for the forthcoming year. This rise is underpinned by the improved trading performance of the Group, continued cash generation and the strong balance sheet. Although we hope to continue to increase dividends over time, the actual level of payment will be determined by the Board's assessment of the Group's then balance sheet strength and future trading and prospects.
Disney
The Group has an economic interest in the outcome of litigation brought by Celador International against the Walt Disney Company and others ("Disney"). Celador was awarded $319m in damages and pre judgement interest and, if paid in full, the Group's share after costs is estimated to be $60m. Disney has appealed the decision and the case has been sent to the United States Court of Appeals for the Ninth Circuit. It is expected that the Appeal Court will schedule the oral argument to be heard in the summer of 2012, with the final decision being received within twelve months of that hearing.
Current Trading
To date we have seen little, if any, impact on overall client spending from the current macro economic gloom and Avesco's growth in revenue for the first quarter of 2012 continues the positive trends seen throughout 2011. In addition, we expect that demand for our services over the summer months should be boosted by the London 2012 Olympics and the UEFA Euro 2012 football championships. Although negative developments in the global economy still have the potential to affect our corporate business, we still believe that 2012 should mark another year of good progress for Avesco.
People
Our business has been built on the quality and expertise of our people. There are many occasions when the business places huge demands and pressures on them and I am very grateful to all our employees for the excellence and service they deliver time after time. When I see the calibre of the staff throughout the Avesco Group, I am confident that the productivity and growth of the last few years will continue strongly into the future.
Future Prospects
We are very much focused on the challenges and opportunities ahead and we have defined our priorities for 2012 and beyond. First and foremost, we must continue to perform well in our core services business, providing our customers with a high quality service while maintaining a strict financial discipline. Secondly we must be ready to respond to developments within our markets such as the continued growth in both the number and the size of live events, the increasingly international nature of the industry and the trend towards 'one-stop shopping' where the client seeks to obtain a wider range of services from a single supplier. The first two play to the Group's current strengths and structure while the last offers us an exciting opportunity to expand the breadth of services that we presently offer.
Our strategy continues to be centred around the organic growth and development of the business. Since 2005, the Group has grown revenues at around 15% annually while maintaining a strong conservative financial structure with modest levels of debt.
It is possible we are now approaching the point where our more recent start-up businesses begin to make a more significant contribution to the Group's financial performance, particularly in terms of cash generation and profitability. The future looks very exciting as we position Avesco for significant and sustained growth.
Avesco Group plc
Chief Executive's Report
The 12 months ended 30 September 2011 have witnessed another period of strong growth for the Avesco Group. This performance reflects various strategic decisions and actions that we have taken over the last few years to develop the Group to meet the challenges and requirements of a global economy with a more international spread of customers and events.
As we have developed the Group, we have sought to provide our clients with the same high quality levels of service, wherever they require it, whether it be locally, nationally or internationally. In recent years we have seen the increasing effects of globalisation as new markets have opened up across the world. We have recognised the importance of being able to support our customers in these new geographical areas and have taken steps to ensure that we have the financial and technical capability to meet these exciting new business opportunities.
At the higher end of our markets, we have seen a demand for increasingly large and complex events. We are being asked to work at opening ceremonies and other showcase events, providing creative and innovative solutions to large and often international live audiences. The in-depth knowledge and experience that we are able to bring to events is often a crucial factor in winning this business and to building trust, confidence and stronger relationships with our customers. Of course, we must also be able to offer the best technology for the job and our investment decisions are key to ensuring that we achieve a high utilisation of equipment and good financial returns.
We also made the decision to concentrate our attention on organic growth and start ups in our underlying businesses. Although this route can be tougher than the instant boost of an acquisition, it has given us the advantage that we can build the business exactly as we want it and around our own management team, writing off the costs of this expansion against the profit of the day. Individually, many of these businesses are now starting to yield a good return and may be at the point where collectively they will start to enhance our profitability and cash flow.
In the last five years, we have grown the business at an average of over 15% per annum, doubling the turnover in that period. We have achieved this growth despite maintaining relatively low debt levels and without any material additional equity funding or weakening of the balance sheet.
Our strategy has meant that Avesco is now a stronger, better positioned Group as a result. Over the last few years, we have invested significantly in our people and capability. We have accelerated the development of our ability to service our customers wherever they are located and wherever they wish to stage events. We are only part way through this journey but I believe that we have built a strong foundation to continue our impressive growth.
Creative Technology (CT)
In the year in which it celebrated its 25(th) anniversary, Creative Technology, the Group's largest business, grew revenues to GBP80.5m (2010: GBP69.1m) and trading profits increased to GBP1.5m (2010: GBP0.8m). The results of the division were driven by an outstanding performance from CTUS. In CT Europe, steps were taken to merge various operational activities in the UK, Germany, Holland and the Middle East to bring about closer cooperation and planning between the various offices and to improve efficiency and utilisation. Overall, CT Europe produced another good performance with CT Germany in particular making excellent progress. With the opening of an office in Qatar, CT now operates from 17 locations around the world, leaving the business well placed to offer customers both a local and international capability while also providing the Group with exposure to new and important emerging markets. As the offices in the Middle East and Asia Pacific move beyond their start-up phase and begin to make a more positive financial impact, we have a very solid foundation from which to drive further growth from the CT division.
Full Service
Our Full Service businesses have seen a welcome turnaround and have returned to profitability with a trading profit of GBP0.4m (2010: loss GBP0.7m). Full Service is one of the Group's most competitive markets and the achievement during the past year is testament to the growing recognition of the MCL brand as a provider of a top quality service at a competitive price. The division's largest business is in the UK, where great strides have been made to build on strong customer relationships and to target new business opportunities. New inventory IT systems are being introduced in the UK, which should produce improvements in asset utilisation and will be rolled out to the operations in the Netherlands and Spain. A number of partnerships have been entered into with conference centre and hotel venues to provide on-site services, opening up a steady flow of new business to add to the division's existing work in the conference and corporate event market.
Our Full Service business in Monaco has been operating in an increasingly competitive market with strong price pressures. Although we looked at acquisition opportunities to bring greater scale to the business, we eventually decided to accept an offer for the company and the sale was successfully completed in December 2011, at a price approximating to net asset value.
Broadcast Services
Collectively our Broadcast Services division, which comprises Presteigne Charter and Fountain Studios, saw reduced profitability with trading profit dropping to GBP0.8m (2010: GBP2.1m) as Presteigne Charter suffered an expected "odd year" dip in its revenues. Presteigne Charter is a key supplier to many broadcasters at major sporting events but, as these tend to take place in even years, 2011 was always going to be a challenging year. However, the coming summer brings the prospect of the UEFA Euro 2012 football championships and London 2012 Olympics and, therefore, promises to be a busy period for Presteigne Charter. 2011 was in contrast a highly successful year for Fountain Studios, our television studios in London. Fountain enjoyed its busiest year ever, with high levels of utilisation of its facilities resulting in record profitability.
Conclusion
Moving forward into 2012, we have good reason to believe it will be a year of significant progress for the Group. Although the economic conditions look uncertain, we have substantial forward momentum and the additional benefit of many large events this year.
Longer term, we believe that Avesco is well placed to meet any of the shifts in our market and to continue to grow by building on our international network, adding additional services, retaining our culture, maintaining a strong balance sheet and never forgetting to give our customers a world-class service.
Avesco Group plc
Consolidated Income Statement
For the year ended 30 September 2011
Year ended 30
September
2011 2010
Note GBP000s GBP000s
------------------------------- ----- ----------- -----------
Revenue 1 125,529 117,236
Cost of sales (82,965) (78,163)
------------------------------- ----- ----------- -----------
Gross profit 42,564 39,073
Operating expenses (41,046) (39,829)
------------------------------- ----- ----------- -----------
Operating profit/(loss) 1,518 (756)
Finance income 6 6
Finance costs (1,422) (1,368)
------------------------------- ----- ----------- -----------
Profit/(loss) before income
tax 102 (2,118)
Income tax (expense)/credit 3 (236) 1,071
------------------------------- -----
Loss for the financial
year (134) (1,047)
------------------------------- ----- ----------- -----------
Pence Pence
per share per share
Losses per share attributable
to the equity holders
of the company (note 4)
- basic (0.5)p (4.2)p
- diluted (0.5)p (4.2)p
Avesco Group plc
Alternative Performance Measures (non-GAAP)
For the year ended 30 September 2011
Year ended 30
September
2011 2010
GBP000s GBP000s
----------------------------- -------------------------- -----------
Operating profit/(loss) 1,518 (756)
Adjusted to exclude:
Amortisation of acquired
intangible assets (IFRS 3) - 244
Restructuring costs 669 1,316
Other non-recurring costs 140 475
Trading profit 2,327 1,279
Net finance costs (1,416) (1,362)
Current tax expense (247) (209)
Trading profit after net
finance costs and current
tax expense 664 (292)
----------------------------- -------------------------- -----------
Trading EBITDA (note 2) 20,262 19,652
----------------------------- -------------------------- -----------
Adjusted earnings/(losses) Pence Pence
per share (per note 4) per share per share
----------------------------- -------------------------- -----------
- basic 2.6p (1.2)p
- diluted 2.6p (1.2)p
Refer to note 8 for a full description of the alternative performance measures adopted by the Group.
Consolidated Statement of Comprehensive Income
For the year ended 30 September 2011
Year ended 30
September
2011 2010
GBP000s GBP000s
---------------------------------- -------- --------
Loss for the financial
year (134) (1,047)
Other comprehensive expense:
Currency translation differences (98) (404)
---------------------------------- -------- --------
Other comprehensive expense
for the year (98) (404)
Total comprehensive expense
for the year (232) (1,451)
---------------------------------- -------- --------
Avesco Group plc
Consolidated balance sheet
As at 30 September 2011
Year ended
30 September
2011 2010
GBP000s GBP000s
------------------------- -------- --------
Assets
Non-current assets
Property, plant
and equipment 55,186 51,971
Intangible assets 179 328
Deferred income
tax assets 6,117 4,470
Trade and other
receivables 182 277
------------------------- -------- --------
61,664 57,046
Current assets
Inventories 1,507 1,385
Trade and other
receivables 23,590 19,355
Current income
tax assets 85 113
Cash and cash
equivalents 7,501 6,896
32,683 27,749
------------------------- -------- --------
Total assets 94,347 84,795
------------------------- -------- --------
Liabilities
Non-current liabilities
Borrowings and
loans 14,157 15,342
Deferred income
tax liabilities 3,041 1,398
Provisions for
other liabilities
and charges 491 815
------------------------- -------- --------
17,689 17,555
Current liabilities
Trade and other
payables 33,242 23,980
Current income
tax liabilities 656 520
Borrowings and
loans 5,483 5,279
Provisions for
other liabilities
and charges 204 211
------------------------- -------- --------
39,585 29,990
------------------------- -------- --------
Total liabilities 57,274 47,545
------------------------- -------- --------
Total assets less
total liabilities 37,073 37,250
------------------------- -------- --------
Equity
Capital and reserves
attributable to
equity holders
of the company
Ordinary shares 2,599 2,599
Share premium 23,286 23,286
Translation reserves 116 214
Retained earnings 11,072 11,151
------------------------- -------- --------
Total equity 37,073 37,250
------------------------- -------- --------
Avesco Group plc
Consolidated Statement of Changes in Equity
For the year ended 30 September 2011
Share Share
capital premium Translation Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Balance at 1 October
2010 2,599 23,286 214 11,151 37,250
Total loss for the
period - - - (134) (134)
Currency translation
differences - - (98) - (98)
------------------------- ---------------- ---------------- ---------------- ---------------- --------
2,599 23,286 116 11,017 37,018
Transactions with owners
in their capacity as owners:
External dividends
paid - - - (254) (254)
LTIP and share options - - - 309 309
---------------- ---------------- ----------------
Balance at 30 September
2011 2,599 23,286 116 11,072 37,073
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Share Share
capital premium Translation Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Balance at 1 October
2009 2,599 23,286 618 12,028 38,531
Total loss for the
period - - - (1,047) (1,047)
Currency translation
differences - - (404) - (404)
------------------------- ---------------- ---------------- ---------------- ---------------- --------
2,599 23,286 214 10,981 37,080
Transactions with owners
in their capacity as owners:
LTIP and share options - - - 170 170
Balance at 30 September
2010 2,599 23,286 214 11,151 37,250
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Avesco Group plc
Consolidated cash flow statement
For the year ended 30 September 2011
Year ended
30 September
2011 2010
GBP000s GBP000s
---------------------------- --------- -----------------
Cash flows from
operating activities
Cash generated
from continuing
operations 19,368 20,050
Net interest paid (1,422) (1,311)
Income tax (paid)/received (62) 131
Net cash generated
from operating
activities 17,884 18,870
---------------------------- --------- -----------------
Cash flows from
investing activities
Purchases of property,
plant and equipment
and software (17,954) (13,843)
Proceeds from
sale of property,
plant and equipment 2,332 2,142
Net cash used
in investing activities (15,622) (11,701)
---------------------------- --------- -----------------
Cash flows from
financing activities
Proceeds from
borrowings 8,901 3,838
Repayments of
external borrowings (10,000) (8,100)
Dividends paid
to Company's shareholders (254) -
Net cash used
in financing activities (1,353) (4,262)
---------------------------- --------- -----------------
Cash (used in)/generated
from discontinued
operations (262) 257
---------------------------- --------- -----------------
Net increase in
cash, cash equivalents
and bank overdrafts 647 3,164
Cash, cash equivalents
and bank overdrafts
at beginning of
year 6,896 3,882
Exchange losses
on cash and bank
overdrafts (42) (150)
Cash, cash equivalents
and bank overdrafts
at end of year 7,501 6,896
---------------------------- --------- -----------------
Avesco Group plc
Notes to the preliminary announcement
For the year ended 30 September 2011
1. Segmental information
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions.
The Board of Directors categorises Group companies based on the services they provide and as a result the business is split into four segments. These correspond to three operating segments (Creative Technology, Full Service and Broadcast Services) which together provide the Group's principal activity of services to the corporate presentation, entertainment and broadcast markets. In addition, the Group recognises a further segment, Head Office, which provides administrative support to the rest of the Group.
Creative Technology provides specialist AV services and equipment to the live events, broadcast and entertainment markets. The Full Service segment consists of companies which provide full technical support for conferences, sports, music, corporate and television programmes. Finally, the Broadcast Services segment provides broadcast equipment, systems and services to the broadcast industry.
The Board of Directors assesses performance of the operating segments based on trading profit (see note 8). As segmental performance does not therefore include finance costs and tax, such items are not allocated to segments.
The segmental results for the year ended 30 September 2011 are as follows:
Creative Full Broadcast Head
Technology Service Services Office Group
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------------- ------------------- ------------------- ------------------- ------------------- ---------
Total segment revenue 81,154 20,931 24,608 - 126,693
Inter segment revenue (685) (122) (357) - (1,164)
-------------------
Revenue 80,469 20,809 24,251 - 125,529
----------------------- ------------------- ------------------- ------------------- ------------------- ---------
Trading EBITDA 12,212 1,681 6,710 (341) 20,262
Less depreciation (10,580) (1,217) (5,885) (8) (17,690)
Less amortisation (133) (69) (41) (2) (245)
----------------------- ------------------- ------------------- ------------------- ------------------- ---------
Trading profit/(loss) 1,499 395 784 (351) 2,327
Restructuring costs (300) (299) (70) - (669)
Other non-recurring
and prior year costs - - - (140) (140)
----------------------- ------------------- ------------------- ------------------- ------------------- ---------
Operating
profit/(loss) 1,199 96 714 (491) 1,518
Net finance costs (1,416)
Profit before income
tax 102
Income tax expense (236)
----------------------- ------------------- ------------------- ------------------- -------------------
Loss for the financial
year (134)
----------------------- ------------------- ------------------- ------------------- ------------------- ---------
The segmental results for the year ended 30 September 2010 are as follows:
Creative Full Broadcast Head
Technology Service Services Office Group
GBP000s GBP000s GBP000s GBP000s GBP000s
-------------------------- ------------ ------------------- ------------------- ------------------- ---------
Total segment revenue 69,876 22,164 26,779 - 118,819
Inter segment revenue (815) (276) (492) - (1,583)
Revenue 69,061 21,888 26,287 - 117,236
-------------------------- ------------ ------------------- ------------------- ------------------- ---------
Trading EBITDA 11,450 1,286 7,894 (978) 19,652
Less depreciation (10,452) (1,881) (5,728) (9) (18,070)
Less amortisation (176) (72) (50) (5) (303)
-------------------------- ------------ ------------------- ------------------- ------------------- ---------
Trading profit/(loss) 822 (667) 2,116 (992) 1,279
Amortisation of acquired
intangible assets (87) - (157) - (244)
Restructuring costs (16) (456) (632) (212) (1,316)
Other non-recurring
and prior year costs (475) - - - (475)
-------------------------- ------------ ------------------- ------------------- ------------------- ---------
Operating profit/(loss) 244 (1,123) 1,327 (1,204) (756)
Net finance costs (1,362)
Loss before income
tax (2,118)
Income tax credit 1,071
-------------------------- ------------ ------------------- ------------------- -------------------
Loss for the financial
year (1,047)
-------------------------- ------------ ------------------- ------------------- ------------------- ---------
Inter-segment transactions are entered into under the normal commercial terms and conditions that would be available to unrelated third parties.
No single customer contributed revenues of greater than 5% of the Group's total revenue for 2010 or 2011.
The segmental assets and liabilities at 30 September 2011, external net debt at 30 September 2011 and capital expenditure cash flows for the year then ended are shown below.
Creative Full Broadcast Head
Technology Service Services Office Unallocated Group
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
--------------------- ------------ --------- ---------- -------- ------------------ --------
Total assets 53,811 7,739 34,551 (7,956) 6,202 94,347
Non-current
assets 26,757 2,438 26,141 29 6,117 61,482
Total liabilities 28,319 4,074 9,584 11,600 3,697 57,274
Capital expenditure 10,079 1,161 6,679 35 - 17,954
External net
debt (3,348) (1,082) 1,635 14,934 - 12,139
--------------------- ------------ --------- ---------- -------- ------------------ --------
Unallocated items relate to deferred tax and income tax.
The segmental assets and liabilities at 30 September 2010, external net debt at 30 September 2010 and capital expenditure cash flows for the year then ended are shown below.
Creative Full Broadcast Head
Technology Service Services Office Unallocated Group
GBP000s GBP000s GBP000s GBP000s GBP000s GBP000s
--------------------- ------------ --------- ---------- ------------------ ------------------ --------
Total assets 42,701 7,971 32,539 (2,999) 4,583 84,795
Non-current
assets 24,014 2,336 25,946 3 4,470 56,769
Total liabilities 18,659 4,674 8,049 14,245 1,918 47,545
Capital expenditure 10,493 879 2,471 - - 13,843
External net
debt (1,093) (14) 3,446 11,386 - 13,725
--------------------- ------------ --------- ---------- ------------------ ------------------ --------
Unallocated items relate to deferred tax and income tax.
The Group's main business segments operate in four main geographical areas. Details of the segmental allocation of revenue, assets and capital expenditure can be found below.
2011 2010
Revenue GBP000s GBP000s
-------------------------- -------- --------
United Kingdom 45,063 44,175
Mainland Europe 29,181 26,432
United States of America 39,216 31,300
Rest of the World 12,069 15,329
125,529 117,236
-------------------------- -------- --------
Revenue is allocated based on the country in which the customer is located.
2011 2010
Total assets GBP000s GBP000s
-------------------------- -------- --------
United Kingdom 46,987 47,314
Mainland Europe 13,815 12,534
United States of America 17,267 13,355
Rest of the World 10,076 7,009
88,145 80,212
Unallocated assets 6,202 4,583
94,347 84,795
-------------------------- -------- --------
Total assets are allocated based on where the assets are owned.
2011 2010
Total non-current assets (other
than deferred tax assets) GBP000s GBP000s
--------------------------------- -------- --------
United Kingdom 36,130 34,681
Mainland Europe 6,538 6,115
United States of America 8,696 8,020
Rest of the World 4,001 3,483
55,365 52,299
Unallocated assets 6,117 4,470
61,482 56,769
--------------------------------- -------- --------
Total non-current assets (other than deferred tax assets) are allocated based on where the assets are owned.
2011 2010
Capital expenditure GBP000s GBP000s
-------------------------- -------- --------
United Kingdom 11,052 7,610
Mainland Europe 2,545 1,428
United States of America 3,042 2,656
Rest of the World 1,315 2,149
17,954 13,843
-------------------------- -------- --------
Capital expenditure is allocated based on where the assets are located.
2. Trading earnings before interest, taxation, depreciation and amortisation ('EBITDA')
2011 2010
GBP000s GBP000s
-------------------------- -------- --------
Trading profit 2,327 1,279
Depreciation 17,690 18,070
Amortisation of software 245 303
Trading EBITDA 20,262 19,652
-------------------------- -------- --------
3. Income tax expense/(credit)
2011 2010
GBP000s GBP000s
--------------------------------- -------- --------
Current tax
Current tax on profits for
the year 272 219
Adjustments in respect of prior
years (25) (10)
--------------------------------- -------- --------
Total current tax 247 209
Deferred tax
Origination and reversal of
temporary differences (254) (1,362)
Impact of change in the UK
tax rate 243 82
--------------------------------- -------- --------
Total deferred tax (11) (1,280)
Income tax charge/(credit) 236 (1,071)
--------------------------------- -------- --------
4. (Losses)/earnings per share
2011 2010
GBP000s GBP000s
-------------------------------------- ------------------- --------------------------
Loss from continuing operations (134) (1,047)
Amortisation of acquired intangible
assets (IFRS 3 (Revised)) - 244
Restructuring costs 669 1,316
Other non-recurring costs 140 475
Deferred tax credit (11) (1,280)
Trading profit after net finance
costs and current tax expense 664 (292)
-------------------------------------- ------------------- --------------------------
Weighted average number of shares
(net of treasury shares)
For basic earnings per share (000's) 25,264 25,023
Effect of dilutive share options
(000's) - -
------------------- --------------------------
For diluted earnings per share
(000's) 25,264 25,023
-------------------------------------- ------------------- --------------------------
(Losses)/earnings per share
Basic (0.5)p (4.2)p
Diluted (0.5)p (4.2)p
-------------------------------------- ------------------- --------------------------
Adjusted basic 2.6p (1.2)p
Adjusted diluted 2.6p (1.2)p
-------------------------------------- ------------------- --------------------------
Basic earnings per share have been calculated by dividing profit/loss for the period by the weighted average number of ordinary shares in issue during the period.
Diluted earnings per share have been calculated by dividing profit/loss for the period by the weighted average number of ordinary shares in issue during the period, adjusted for any awards under the Company's Long Term Incentive Plan ("LTIP") where pre-specified performance conditions have been satisfied and any required conversion of dilutive potential options. There is no dilution in the current or prior period as the performance conditions have not yet been satisfied for the outstanding LTIP awards. Losses are not subject to dilution.
Adjusted earnings per share have been calculated as per note 8.
5. Dividends
A final dividend for the year ended 30 September 2010 of 1.0p per share amounting to a total of GBP254,000 was approved by shareholders and was paid on 6 April 2011 to shareholders on the register at 6.00pm on 11 March 2011. During the year ended 30 September 2010, the Group paid no dividends.
A final dividend for the year ended 30 September 2011 of 3.0p per share has been proposed and, subject to shareholders' approval, will be paid on 31 May 2012 to shareholders on the register at 6.00pm on 10 April 2012.
6. Analysis of net debt
Other At
At Net non Currency 30
1 October cash cash translation September
2010 flow changes differences 2011
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ---------------- ---------------- ---------------- ---------------- ----------------
Cash at bank
and in hand 6,896 647 - (42) 7,501
Bank overdrafts - - - - -
----------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net cash 6,896 647 - (42) 7,501
Bank loans due
in less than
one year - - - - -
Bank loans due
in more than
one year (12,363) 2,401 - (58) (10,020)
Finance lease
obligations
due in less
than one year (5,279) 4,273 (4,443) (34) (5,483)
Finance lease
obligations
due in more
than one year (2,979) (5,575) 4,443 (26) (4,137)
Net debt (13,725) 1,746 - (160) (12,139)
----------------- ---------------- ---------------- ---------------- ---------------- ----------------
Other At
At Net non Currency 30
1 October cash cash translation September
2009 flow changes differences 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ---------------- ---------------- ---------------- ---------------- ----------------
Cash at bank
and in hand 4,531 2,554 - (189) 6,896
Bank overdrafts (649) 610 - 39 -
----------------- ---------------- ---------------- ---------------- ---------------- ----------------
Net cash 3,882 3,164 - (150) 6,896
Bank loans due
in less than
one year - - - - -
Bank loans due
in more than
one year (13,700) 1,256 - 81 (12,363)
Finance lease
obligations
due in less
than one year (5,988) 5,565 (4,842) (14) (5,279)
Finance lease
obligations
due in more
than one year (5,256) (2,559) 4,842 (6) (2,979)
Net debt (21,062) 7,426 - (89) (13,725)
----------------- ---------------- ---------------- ---------------- ---------------- ----------------
Non cash changes comprise transfers between categories of bank loans and finance lease obligations.
7. Status of preliminary announcement
The financial information set out in this announcement for the year ended 30 September 2011 does not constitute the Group's statutory accounts as defined by s435 of the Companies Act but has been extracted from the 2011 statutory accounts on which an unqualified audit report has been made by the auditors, and which did not contain an emphasis of matter paragraph nor a statement under section 498(2) or (3) of the Companies Act 2006.
Statutory Accounts for the year ended 30 September 2010 have been delivered to the Registrar of Companies and the auditors' report on these accounts was unqualified and did not contain a statement under either Section 498(2) or (3) of the Companies Act 2006.
8. Basis of preparation
The preliminary results for the year ended 30 September 2011 have been prepared in accordance with the accounting policies set out in the annual report and accounts for the year ended 30 September 2010.
For the purposes of this preliminary announcement and the annual report and accounts, the Group uses alternative non-Generally Accepted Accounting Practice ("non-GAAP") financial measures which are not defined within IFRS. The Directors use these measures in order to assess the underlying operational performance of the Group, and as such, these measures are important and should be considered alongside the IFRS measures. The following non-GAAP measures are referred to in the preliminary announcement:
a) Trading profit/(loss)
'Trading profit/loss' is separately disclosed, being defined as operating profit adjusted to exclude amortisation of acquired intangible assets, restructuring costs and other non-recurring costs. Other non-recurring costs relate to items which management believe do not accurately reflect the underlying trading performance of the business in the period. The Directors believe that trading profit/loss is an important measure of the underlying performance of the Group.
b) Adjusted earnings per share
'Adjusted earnings per share' is calculated by dividing the profit for the period excluding the amortisation of acquired intangible assets, restructuring costs, other non-recurring costs and the deferred tax charge/credit by the weighted average number of ordinary shares in issue during the period. The Directors believe that adjusted earnings per share provides an important measure of the underlying performance of the Group.
c) Trading EBITDA
Trading earnings before interest, taxation, depreciation and amortisation ('EBITDA') is separately disclosed, being defined as trading profit/loss adjusted to exclude depreciation and amortisation of software. The Directors believe that trading EBITDA is an important measure of the underlying performance of the Group.
9. Annual general meeting
The Annual General Meeting of the Company will be held at 9.30am on 12 March 2012 at Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH.
10. Annual report and accounts
Copies of the full Statutory Accounts will be dispatched to shareholders in due course. Copies will also be available on the Company's website (www.avesco.com) and from the registered office of the Company: Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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