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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Spaceandpeople | AQSE:SAL.GB | Aquis Stock Exchange | Ordinary Share | GB00BPQDJM21 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 87.50 | 80.00 | 95.00 | 87.50 | 87.50 | 87.50 | 0.00 | 06:56:11 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMSAL
RNS Number : 2642T
SpaceandPeople PLC
29 March 2016
SpaceandPeople plc
("SpaceandPeople" and the "Company")
Preliminary Results and Proposed Final Dividend
SpaceandPeople, the retail, promotional and brand experience specialist, is pleased to announce its preliminary results for the 12 months ended 31 December 2015.
Financial Highlights
-- Gross revenue of GBP26.5 million -- Net revenue of GBP13.8 million -- Profit before tax attributable to shareholders of GBP1.0 million -- Basic Earnings per share of 4.26p -- Proposed final dividend of 2.2p -- Net cash at year end of GBP0.7 million
Operational Highlights
-- 56 Mobile Promotion Kiosks in operation by the year end -- 5 year Network Rail contract won -- British Land contract won in early 2016 -- Immochan pilot MPK contract agreed in France starting in 2016
For further information, contact:
SpaceandPeople Plc 0845 241 8215 Matthew Bending, Gregor Dunlay Cantor Fitzgerald Europe 020 7894 7000 David Foreman, Will Goode (Corporate Finance) David Banks (Corporate Broking)
About SpaceandPeople
The SpaceandPeople Group is the leading international media specialist representing 750+ venues with a weekly footfall of over 70 million. The Group markets, sells and administers space in high footfall venues, including shopping centres, railway stations, retail parks and city centres. As the media owner of promotional spaces, we offer consumer brands the opportunity to promote their products through direct consumer engagement with experiential marketing events.
Chairman's Statement
2015 was a year of evolution and progress for SpaceandPeople against the background of a continuing tough retail trading environment.
In terms of financial performance, profit before tax and non-recurring items attributable to the shareholders was similar to the previous year at GBP1.0 million (2014: GBP1.0 million), however, basic EPS increased by 82% to 4.26p (2014: 2.34p) as a result of there being no non-recurring costs in 2015 (2014: GBP391k).
There were a number of areas where the business and product offering have been significantly changed for the future which we are confident will be of longer term benefit for the Group:
-- Commercially, the winning of the Network Rail contract will allow the Group to expand its range of venues and provides the security of a long term contract;
-- The Mobile Promotional Kiosk product was launched in 2014 and was expanded successfully in the course of the last year with 56 units currently operational and a target of expanding this to at least 80 to 90 units by the end of 2016; and
-- We commenced a promising pilot project with Immochan in France, a geographic expansion with significant potential. We see the start-up costs on this as a fruitful investment.
As these new initiatives roll out and deliver growth, there will continue to be existing venues which will opt to create commercialisation revenues in-house rather than use the services of SpaceandPeople, but the pipeline of new opportunities, venue development and geographic expansion continues to outweigh business reversals.
It was also encouraging to see the cost base of the business lowered and underlying margins increasing in the course of the year.
With an expanded range of venues, new products available, the Management Team are focussed on ensuring that the sales effort is stepped up to meet the potential of these opportunities.
We believe that SpaceandPeople is creating a solid platform for growth and a sustainable future.
The Board has decided to recommend a full dividend of 2.20p per share, a ten percent increase on last year's dividend, payable on 29 April 2016 to all shareholders on the register on 15 April 2016.
I would like to thank all our staff for their hard work and effort in 2015.
Charles G. Hammond
Chairman
24 March 2016
Strategic Report
Principal Activities
The principal activity of the Group is the marketing and selling of promotional and retail licensing space on behalf of shopping centres and other venues throughout the UK and Germany and also in France and India.
Review of Business and Future Developments
The results for the period and the financial position of the Group are shown in the financial statements.
The review of the business and a summary of future developments are included in the Chairman's Statement, the Chief Executive Officer's Review and the Operating and Financial Review.
Principal Risks and Uncertainties
The principal risks identified in the business are:
Loss of client - Each year a number of the Group's contracts with clients come to an end. At this point some are renewed, some are not renewed and others are renegotiated. When the amount of business that we transact with an established client reduces, it can take time to replace this income with business from new clients. The Group is not overly reliant on any single client and the loss of a significant client, although unwelcome, would not put the viability of the business at risk.
Loss of key personnel - The unexpected loss of a member of our senior management team could have a negative effect on the business in the short term, however, we have a management team of ten members who are encouraged and required to engage with and assist their colleagues in other areas of the business to ensure that understanding and exchange of ideas is a core element of their roles. This ensures that the business is not at risk while we seek to replace the member or conduct a reorganisation of the team.
System failure - Whilst no guarantees can be given that all possible eventualities are covered, the Group has comprehensive and strict policies and contingency plans concerning power outages, telecommunications failure, virus protection, hardware and software failure, frequent and full offsite backup of all data and disaster recovery. Contracts and service level agreements are in place with reputable suppliers to ensure that any disruption and risk to the business is kept to an absolute minimum. The adequacy and appropriateness of these policies and plans are reviewed on a regular basis.
Legal claims - The Group constantly reviews its exposure to possible legal claims and takes appropriate advice and action to protect both itself and its clients where any avoidable risk is identified, for example, by amending terms and conditions, service agreements, licences and risk assessments.
Key Performance Indicators
The key performance indicators are:
Hot Features
Premium
2015 2014
Gross revenue (GBPm) 26.5 31.6
Net revenue (GBPm) 13.8 15.4
Profit before taxation attributable
to shareholders (GBPm) 1.0 0.6
Basic earnings per share (p) 4.26 2.34
Proposed dividend (p) 2.2 2.0
Average number of Retail Merchandising
Units (RMUs) 267 276
Average number of Mobile Promotions 32 -
Kiosks (MPKs)
By order of the Board
Gregor Dunlay
Company Secretary
24 March 2016
Chief Executive Officer's Review
Overview
2015 has been a year of transition for SpaceandPeople with a focus on gaining significant new clients and delivering higher value services to both them and our existing clients.
The growth in our Mobile Promotion Kiosk ("MPK") business has been a real highlight for me and our significant investment in equipment and staffing for this is beginning to deliver positive results. Innovation, sustainability and development into new areas is key for our business. Innovation is about new products and new processes, sustainability is about winning new venues and driving efficiencies. I am pleased to say the management team has delivered on both these areas.
Overall, profitability for 2015 was in line with our expectations given that we invested significantly in the MPK roll-out in the UK and France as well as deciding to recognise an element of promotional revenue that is now derived from the MPKs on the same basis that we recognise revenue from Retail Merchandising Units. This resulted in the deferral of GBP150k of net promotional revenues into 2016 that would previously have been accounted for in 2015.
The main achievements of 2015 included winning significant new business in the UK, such as the Network Rail contract from a very large and established incumbent. The contract, although only starting in the last few months of the year saw our UK agencies division have a significant increase in enquiries and this has created a strong sales pipeline for 2016. Also the venues team headed up by Nancy Cullen delivered the British Land contract early in 2016 which is rolling out venue by venue throughout the year. These are important wins and will help us maintain sales in the UK.
In Germany we secured an extension to the ECE retail contract and also managed to renegotiate the opportunity to focus on the most profitable locations with reduced risk.
Finally, we negotiated a pilot project with Immochan group; the property arm of Auchan in France. Five key centres were selected for us to roll out the MPK programme in 2016, with an aim of securing a longer term full portfolio deal. The cost of setting up this division, in advance of it beginning to operate, was absorbed during the year.
(MORE TO FOLLOW) Dow Jones Newswires
March 29, 2016 02:01 ET (06:01 GMT)
Net revenue in 2015 was GBP1.6 million lower than 2014 at GBP13.8 million as a result of three main factors. Firstly, UK revenue was affected by the decision of a few venues to stop using our service. These decisions were known in advance and had been planned for with the cost base being adjusted to compensate for this. Secondly, German retail revenue was also lower than in the previous year, however almost all of the reduction of GBP356k was the result of weaker Sterling:Euro exchange rates. Thirdly, S&P+ did not have a repeat of the very large contract they transacted in 2014, but did deliver significantly more projects than in the previous year which was more in line with their business model and our expectations.
As I mentioned earlier, the other significant goal we set for 2015 was the roll out of the MPK programme in the UK. This innovative and unique product has been developed from an early prototype to an evolved design, and from 4 units in January 2015 we had 49 units operating in the UK by December 2015. Customer demand from both venues and brands wishing to use the product has been strong and the objective for 2016 is to enhance the scope and range of the MPKs reaching at least 80 units by the end of the year.
UK
As had been expected, retail operations in the UK contracted with the average number of RMUs in operation falling to 133 (2014: 141 RMUs) mainly as a result of the termination of the agreement with Intu. It is anticipated that this will continue to a lesser extent in 2016 as the contract with Whiterose Shopping Centre ends in the spring. The team however, has responded to the challenge of changing customer requirements and has developed a new pop up retail product. We piloted this programme in 2015 and saw some 30 pop up units trading over Christmas. The team has worked on improving the operations after the initial pilot and we anticipate that the industry will see short term on-demand retail as the new normal. The team is also making great strides in building a pipeline of new venues including winning the Queensmere/Observatory centre in Slough in late 2015 and we are encouraged by the progress they are making.
The promotions business had a mixed year with some areas such as Agency and Brand Experience sales performing strongly, while historical bankers such as "Protailing" seeing significant declines due to products moving out of vogue and in-house teams being developed to service these specific users in malls. These pressures are well known and we have driven the growth of MPK's and pop up retail to counter these threats.
Germany
German promotions did very well in the face of tough trading conditions, seeing a 15% increase in sales compared with the previous year. Unfortunately this improvement was negated by foreign exchange movements in the year. We rolled out seven MPKs which is slightly fewer than we had hoped for, but we are focused on winning more contracts with this product in 2016.
SpaceandPeople Ventures
This is the grouping of overseas companies and companies that are new and that we are developing.
India delivered results that were in line with expectations, however, the environment in India remains tough for commercialisation and we don't see significant opportunities for growth in the Indian business in 2016. In the other branch of the Indian business, the contract selling consultancy, management services and IP to Quiosco to help develop their MacV brand saw 27 kiosks established during 2015 which we expect to grow further in 2016.
S&P+, our London based above-the-line ("ATL") advertising support company's main goal was customer and revenue diversification. In 2014 they transacted one large project that dominated the resources of the small team. In 2015 they broadened their offer and a larger number of smaller contracts were won, further establishing this unique business model. Revenues were lower than 2014 at GBP2.4 million, but I view the progress made in 2015 as being a real success.
Summary
The development of the MPK programme and the focus on product solutions as opposed to service solutions to UK and French venues in particular will be the key driver in 2016. The venues teams in Germany, UK and France have specific targets for rolling out MPKs and pop up retail solutions this year and this should make up the loss of the Whiterose Shopping Centre RMU contract. Although 2016 will see modest growth in profitability, the behind the scenes transformations the group is making will reposition and strengthen our offer which we believe will result in a more sustainable and growing business.
Matthew Bending
Chief Executive Officer
24 March 2016
Operating and Financial Review
The main aims for the Group in 2015 were to stabilise the business following the difficulties of 2014 and to make progress in gaining new clients, retain existing ones and roll out the new Mobile Promotion Kiosk ("MPK") service.
These objectives have been achieved. By the end of 2015 we had forty nine MPKs installed in venues throughout the UK and a further seven in Germany. We announced that we had won the exclusive rights to carry out promotional activities in Network Rail's portfolio of UK stations as well as securing a number of further individual contracts with a number of venues. In early 2016 we were able to announce a significant contract with British Land and we also commenced the pilot contract with Immochan in France to trial MPKs in five of their shopping malls.
The restructuring of overheads undertaken in 2014 has been successful and the business now operates more efficiently and effectively as a result.
Revenue
During 2015, gross revenue generated on behalf of our clients was GBP26.5 million, which was GBP5.1 million (16%) lower than in the previous year. This was due mainly to reductions in UK retail revenue along with a reduction in S&P+ revenue that was lower as a result of the large contract they carried out in 2014 not being replicated in 2015. As a result of this decrease in gross revenue, net revenue to the Group fell by GBP1.6 million (11%) to GBP13.8 million.
During 2015, UK promotions performed well with Brand Experience promotions increasing by 26% to GBP870k. Regional/Local revenue fell GBP309k (21%) although the majority of this was due to some revenue previously recorded as outbound sales being recorded as MPK revenue. UK retail sales were GBP464k (34%) lower than in the previous year. This was due in part to the loss of Manchester Arndale as a venue in early 2015 following a change in ownership control of this centre, but was also affected by a trend towards some venues deciding to arrange long-term retailers in-house.
UK RMU and MPK sales in 2015 were GBP3.2 million which was GBP83k (2%) lower than in 2014. This was due to there being fewer RMUs in operation during 2015 than in 2014 with an average of 133 compared with 141. The reduction in RMUs in operation was also due to the loss of Manchester Arndale as a venue along with the loss of Cabott Circus due to a change of control and the ending of the contract with Intu at Lakeside and Metro shopping centres. Efforts have been made to replace this lost business and towards the end of 2015 RMUs and Pop-Up kiosks were installed in the newly opened Grand Central in Birmingham, Ocean Terminal in Edinburgh and Queensmere/Observatory in Slough.
The decrease in RMU revenue was, however, almost fully offset by the increased revenue achieved from the roll out of MPKs. By the end of 2015, the 49 MPKs in operation in the UK had generated GBP656k of revenue in the year. They have been very well received by both venues and promoters and the roll out of new kiosks is continuing in 2016.
Gross revenue from German promotional activity was stable at EUR3.4 million compared with EUR3.3 million in the previous year, however, the relative weakness of Sterling compared with the Euro in 2015 compared with 2014 meant that converted revenue in 2015 was GBP2.4 million compared with GBP2.5 million in 2014. Revenue from German RMUs was GBP2.6 million compared with GBP3.0 million in the previous year. All but GBP74k of this difference was due to foreign exchange movements.
Administrative Expenses
Administrative expenses in the Group fell by GBP1.3 million (15%) to GBP7.4 million. This reduction was primarily as a result of the restructuring undertaken during 2014 along with additional savings identified during 2015.
The average number of people employed in the business increased by 3 to 132 from 129 in 2014 as a result of the recruitment of additional administrative staff.
Profit
Profit before tax and non-recurring costs attributable to shareholders was stable at GBP1.0 million (2014: GBP1.0 million). As there were no non-recurring costs in 2015, profit before taxation attributable to shareholders increased by 66% to GBP1.0 million (2014: GBP0.6 million).
The average rate of corporation tax across the Group in 2015 was 19% compared with 22% in 2014. This reduction was as a result of a reduction in the UK corporation tax rate and an increase in the proportion of the Group's profit that occurred in the UK where corporation tax rates are comparatively low.
Basic Earnings per Share ("EPS") increased by 82% to 4.26p (2014: 2.34p). Fully diluted EPS increased by 85% to 3.89p (2014: 2.10p). Basic EPS is calculated as profit after tax attributable to the owners of the Company divided by the weighted average number of shares in issue during the year which was 19,519,563 (2014: 19,519,563). Fully diluted EPS also takes into account the number of shares that would be issued on the exercise of outstanding share options. The weighted average number of shares used to calculate the diluted EPS was 21,385,604 (2014: 21,707,874).
Cash Flow
(MORE TO FOLLOW) Dow Jones Newswires
March 29, 2016 02:01 ET (06:01 GMT)
The Group generated GBP203k of net cash flow from operating activities during the year (2014: GBP771k). This was achieved after reducing the amount owed to creditors by GBP1.3 million during the year. During the year GBP690k was spent on fixed assets, the majority of which was spent on new MPKs, and a dividend of GBP390k was also paid during the year. An additional GBP500k was drawn down on the banking facility to part fund the capital expenditure.
Dividends
The Company is proposing a final dividend of 2.20p per share at the Annual General Meeting on 28 April 2016. If approved, this will be paid on 29 April 2016. This dividend would represent a distribution to shareholders of 53% of the basic EPS in 2015.
Gregor Dunlay
Chief Financial Officer
24 March 2016
Consolidated Statement of Comprehensive Income
Notes 12 months 12 months
to to
31 December 31 December
'15 '14
GBP'000 GBP'000
Revenue 4 13,814 15,446
Cost of Sales 4 (5,685) (5,839)
Gross Profit 8,129 9,607
Administration expenses (7,335) (8,696)
Other operating income 295 224
Operating profit
before 5 1,089 1,135
non-recurring costs
Non-recurring costs 7 - (391)
Operating Profit 1,089 744
------------ ------------
Finance income 8 - 36
Finance costs 8 (28) (18)
Profit before taxation 1,061 762
------------ ------------
Taxation 9 (197) (166)
Profit after taxation 864 596
------------ ------------
Foreign exchange
differences on (39) (28)
translation of foreign
operations
Total comprehensive
income for the 825 568
period
------ ------
Profit for the year
attributable to:
Owners of the Company 831 456
Non-controlling interests 33 140
------ ------
864 596
------ ------
Total comprehensive
income for the
period attributable
to:
Owners of the Company 792 428
Non-controlling interests 33 140
------ ------
Total comprehensive
income for the 825 568
period
------ ------
Earnings per share 24
Basic - Before non-recurring
costs 4.26p 3.91p
Basic - After non-recurring
costs 4.26p 2.34p
Diluted - Before
non-recurring costs 3.89p 3.51p
Diluted - After non-recurring
costs 3.89p 2.10p
Consolidated Statement of Financial Position
Company number SC212277
Notes 31 December 31 December
'15 '14
GBP'000 GBP'000
Assets
Non-current assets:
Goodwill 12 8,225 8,225
Other intangible
assets 13 17 18
Property, plant &
equipment 14 1,625 1,374
------------ ------------
9,867 9,617
Current assets:
Trade & other receivables 16 4,205 4,221
Cash & cash equivalents 17 1,723 2,115
------------ ------------
5,928 6,336
Total assets 15,795 15,953
------------ ------------
Liabilities
Current liabilities:
Trade & other payables 18 4,506 5,835
Current tax payable 18 18 (170)
Other borrowings 19 250 250
------------ ------------
4,774 5,915
Non-current liabilities:
Deferred tax liabilities 15 58 10
Long-term loan 19 750 250
------------ ------------
808 260
Total liabilities 5,582 6,175
------------ ------------
Net assets 10,213 9,778
------------ ------------
Equity
Share capital 22 195 195
Share premium 4,868 4,868
Special reserve 233 233
Retained earnings 4,747 4,345
Equity attributable
to owners of the 10,043 9,641
Company
Non-controlling interest 170 137
------------ ------------
Total equity 10,213 9,778
------------ ------------
The financial statements were approved by the Board of Directors and authorised for issue on 24 March 2016.
Signed on behalf of the Board of Directors by:
M J Bending - Director
Consolidated Statement of Cash Flows
Notes 12 months 12 months
to to
31 December 31 December
'15 '14
GBP'000 GBP'000
Cash flows from operating
activities
Cash generated from
operations 192 1,687
Interest paid 8 (28) (18)
Taxation 39 (898)
Net cash inflow from
operating 203 771
activities
------------ ------------
Cash flows from investing
activities
Interest received 8 - 36
Purchase of intangible
assets 13 (15) (30)
Purchase of property,
plant & equipment 14 (690) (245)
Net cash (outflow)
from investing (705) (239)
activities
------------ ------------
Cash flows from financing
activities
Repayment of bank
loan / loan notes - (205)
Bank facility received 500 500
Dividends paid 11 (390) (800)
------------ ------------
Net cash inflow /
(outflow) from 110 (505)
Financing activities
------------ ------------
(Decrease) / Increase
in cash and cash
equivalents (392) 27
Cash and cash equivalents
at beginning of 2,115 2,088
period
------------ ------------
Cash and cash equivalents
at end of 17 1,723 2,115
period
------------ ------------
Reconciliation of
operating profit
to net
cash flow from operating
activities
Operating profit 1,089 744
Amortisation of intangible
assets 13 16 19
Depreciation of property,
plant & 14 439 461
equipment
Effect of foreign
exchange rate moves (39) (28)
Decrease in receivables 16 916
Decrease in payables (1,329) (425)
-------- ------
Cash flow from operating
activities 192 1,687
-------- ------
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March 29, 2016 02:01 ET (06:01 GMT)
Consolidated Statement of Changes in Equity
Share Share Special Retained Non- Total
capital premium reserve earnings controlling equity
GBP'000 GBP'000 GBP'000 GBP'000 interest GBP'000
GBP'000
At 31 December
2013 195 4,868 233 4,717 (3) 10,010
Comprehensive
income:
Foreign currency - - - (28) - (28)
translation
Profit for
the period - - - 456 140 596
-------- -------- -------- --------- ------------ --------
Total comprehensive - - - 428 140 568
income
-------- -------- -------- --------- ------------ --------
Transactions
with
owners:
Dividends
paid - - - (800) - (800)
-------- -------- -------- --------- ------------ --------
Total transactions
with - - - (800) - (800)
owners
At 31 December
2014 195 4,868 233 4,345 137 9,778
-------- -------- -------- --------- ------------ --------
Comprehensive
income:
Foreign currency
translation - - - (39) - (39)
Profit for
the period - - - 831 33 864
---- ------ ---- ------ ---- -------
Total comprehensive - - - 792 33 825
income
---- ------ ---- ------ ---- -------
Transactions
with
owners:
Dividends
paid - - - (390) - (390)
---- ------ ---- ------ ---- -------
Total transactions
with - - - (390) - (390)
owners
At 31 December
2015 195 4,868 233 4,747 170 10,213
---- ------ ---- ------ ---- -------
Notes to the Financial Statements
1. General information
SpaceandPeople plc is a public limited company incorporated and domiciled in Scotland (registered number SC212277) which is listed on AIM (dealing code SAL).
2. Basis of preparation
The Group's financial statements for the period ended 31 December 2015 and for the comparative period ended 31 December 2014 have been prepared on a going concern basis under the historical cost convention in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and International Financial Reporting Interpretations Committee (IFRIC) interpretations, and with those part of the Companies Act 2006 applicable to companies reporting under IFRS.
The Directors have, at the time of approving the financial statements, a reasonable expectation that SpaceandPeople has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
Future accounting developments
New and revised IFRSs applied with no material effect on the consolidated financial statements
Title Implementation Effect on Group
IAS 19 - Amendments Annual periods None
to 'Defined Benefit beginning on
Plans: Employee or after 1 July
Contributions' 2014
Annual Improvements Annual periods None
to IFRSs (2010-2012 beginning on
and 2011-2013) or after 1 July
2014
The following standard will be introduced in future periods
Title Implementation Effect on Group
IFRS 14 - 'Regulatory Annual periods None
Deferral Accounts' beginning on
or after 1 January
IFRS 15 - 'Revenue 2016 None
from Contracts
with Customers' Annual periods
beginning on None
IFRS 11 - Amendments or after 1 January
to 'Accounting 2018
for Acquisitions
of Interests in Annual periods None
Joint Operations' beginning on
or after 1 January
IAS 16 and IAS 2016
38 - Amendments
to 'Clarification None
of Acceptable Annual periods
Methods of Depreciation beginning on
and Amortisation' or after 1 January None
2016
IFRS 9 - 'Financial
Instruments (2014)'
None
IAS 27 - Amendments Annual periods
to 'Equity Method beginning on
in Separate Financial or after 1 January
Statements' 2018
None
IFRS 10 and IAS Annual periods
28 - Amendments beginning on
to 'Sale or Contribution or after 1 January None
of Assets between 2016
an Investor and
its Associate None
or Joint Venture' Annual periods
beginning on
Annual Improvements or after 1 January
to IFRSs (2012-2014) 2016 None
IAS 1 - Amendments
to 'Disclosure
Initiative' Annual periods
beginning on
IAS 12 - Amendments or after 1 January
to 'Recognition 2016
of Deferred Tax
Assets for Unrealised Annual periods
Losses' beginning on
or after 1 January
IAS 7 - Amendments 2016
to 'Disclosure
Initiative' Annual periods
beginning on
or after 1 January
2017
Annual periods
beginning on
or after 1 January
2017
Management anticipates that the standards and interpretations in issue, but not yet effective will be adopted in the financial statements when they become effective and foresee currently no material impact by the adoptions on the financial statements of the Group in the period of initial application. However, this will be assessed further upon implementation.
3. Accounting policies
Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.
For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss of goodwill is recognised directly in the consolidated statement of comprehensive income. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
The Group's policy for goodwill arising on the acquisition of an associate is described below.
Investments in subsidiaries
The parent Company's investments in subsidiary undertakings are included in the Company statement of financial position at cost, less provision for any impairment in value.
Revenue
Revenue is measured at the fair value of consideration received or receivable. Revenue is shown net of value-added tax, rebates and discounts and after eliminating intergroup sales. Revenue is recognised when the amount of revenue can be measured reliably, it is probable that future economic benefits will flow to the Group and when any specific delivery criteria have been met.
Commission
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Revenue from commission receivable while acting as agent is recognised when the following conditions are satisfied;
- Contract is agreed with promoter / merchant - Venue acceptance of contract - Invoice issued and no further input anticipated
Acting as principal
Revenue from agreements where we act as principal i.e. renting space from venues and reselling to promoters and operators, is recognised as gross revenue receivable by us, with the corresponding amount payable to the venue owner being recognised in administrative expenses.
Leasing Income
Revenue from leasing activities is recognised on a straight line basis over the term of the lease.
Licence Fees
Licence fee revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset's net carrying amount on initial recognition.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Property, plant & equipment
Depreciation is provided at the annual rates below in order to write off each asset over its estimated useful life.
Plant & equipment - 12.5% of cost Fixtures & fittings - 25% of cost Computer equipment - 25% of cost Computer software - 33% of cost
Property, plant & equipment is stated at cost less accumulated depreciation to date.
Intangible assets
Website development costs
The Group capitalises all costs directly attributable to further developing its websites, while costs which relate to on-going maintenance are expensed as they arise. The capitalised costs are depreciated over three years.
Patents and trademarks
The costs of obtaining patents and trademarks are capitalised and written off over the economic life of the asset acquired.
Impairment of non-current assets
The need for any non-current asset impairment is assessed by comparison of the carrying value of the asset against the higher of realisable value and the value in use or, in the case of intangible assets, the anticipated future cash flows arising from the asset.
Leasing commitments
Rentals paid under operating leases are charged against profit as incurred. The Group has no finance leases.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight line basis over the term of the relevant lease.
Taxation
The tax expense represents the sum of tax currently payable and deferred tax. Tax currently payable is based on the taxable profit for the period. The Group's liability for current tax is calculated using rates that have been enacted or substantially enacted at the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profits, and is accounted for using the liability method. Deferred tax liabilities are recognised for all temporary timing differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition, other than in a business combination, of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted at the balance sheet date. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.
Foreign exchange
Items included in the Group's financial statements are measured using Pounds Sterling, which is the currency of the primary economic environment in which the Group operates, and is also the Group's presentational currency.
Transactions denominated in foreign currencies are translated into Sterling at the rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates at that date. These translation differences are dealt with in the profit and loss account.
The income and expenditure of overseas operations are translated at the average rates of exchange during the period. Monetary items on the balance sheet are translated into Sterling at the rate of exchange ruling on the balance sheet date and fixed assets at historical rates. Exchange difference arising are treated as a movement in reserves.
Financial instruments
Financial assets and liabilities are recognised in the Group's balance sheet when it becomes a party to the contractual provisions of the instrument.
Trade and other receivables
Are carried at original invoice value less an allowance for any uncollectable amounts. An allowance for bad debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off in the income statement when identified.
Cash and cash equivalents
Are carried in the balance sheet at cost and comprise cash in hand, cash at bank and deposits with banks.
Trade and other payables
Are carried at amortised costs and represent liabilities for goods or services provided to the Group prior to the period end that are unpaid and arise when the Group becomes obliged to make future payments in respect of these goods and services.
Equity instruments
Issued by the Group are recorded at the proceeds received, net of direct issue costs.
Share based payments
The Group operates a number of equity settled share based payment schemes under which share options are issued to certain employees. The fair value determined at the grant date of the equity settled share based payment, where material, is expensed on a straight line basis over the vesting period. For schemes with only market based performance conditions, those conditions are taken into account in arriving at the fair value at grant date.
Pensions
The Group pays contributions to the personal pension schemes of certain employees. Contributions are charged to the income statement in the period in which they fall due.
Critical accounting judgements and estimates
The preparation of financial statements in conformity with IFRS requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the period. Although these estimates are based on management's best knowledge of current events and actions, actual results may differ from those estimates. IFRS also requires management to exercise its judgement in the process of applying the Group's accounting policies.
The areas where significant judgements and estimates have been made in the preparation of these financial statements are the useful lives and impairment of non-current and intangible assets, impairment of the value of investment in associates and taxation. Explanations of the methodology and the resultant assumptions are detailed in the relevant accounting policies above and the respective notes to the financial statements.
Borrowing costs
Borrowing costs are amortised over the duration of the loan and recognised throughout the term of the loan.
4. Segmental reporting
The Group maintains its head office in Glasgow and a subsidiary office in Hamburg, Germany. These are reported separately. In addition, the retail business, now trading as POP retail, has an office in London and a subsidiary in Germany. The Group has determined that these are the principal operating segments as the performance of these segments is monitored separately and reviewed by the Board.
The following tables present revenues, results and asset and liability information regarding the Group's two core business segments - Promotional Sales and Retail, split by geographic area, after licence fees and management charges made between Group companies, the Other segment incorporates S&P+ and SpaceandPeople India.
Segment revenues Promotion Promotion Retail Retail Head Other Group and results UK Germany UK Germany Office for 12 months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 to 31 December '15 Continuing operations 3,063 2,438 3,151 2,632 - 2,530 13,814 revenue Cost of sales - - (2,540) (1,445) - (1,700) (5,685) Administrative expenses (1,351) (2,444) (405) (1,317) (1,039) (779) (7,335) Other revenue - 59 - 176 - 60 295
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Non recurring - - - - - - -
costs
Segment operating
profit 1,712 53 206 46 (1,039) 111 1,089
/ (loss)
------------ ------------ --------- --------- -------- -------- --------
Finance costs (28) - - - - - (28)
Segment profit
/ (loss) 1,684 53 206 46 (1,039) 111 1,061
before taxation
------------ ------------ --------- --------- -------- -------- --------
Segment assets Promotion Promotion Retail Retail Other Group
and
liabilities UK Germany UK Germany
as at 31 December GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
'15
Total segment
assets 6,482 1,654 4,781 1,455 1,423 15,795
Total segment
liabilities (2,031) (802) (1,214) (1,101) (434) (5,582)
Total net
assets 4,451 852 3,567 354 989 10,213
---------- ---------- -------- -------- -------- --------
Segment revenues Promotion Promotion Retail Retail Head Other Group
and
results UK Germany UK Germany Office
for 12 months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
to
31 December
'14
Continuing
operations 3,603 2,507 3,277 2,988 - 3,071 15,446
revenue
Cost of sales - - (2,148) (1,651) - (2,040) (5,839)
Administrative
expenses (2,438) (2,335) (883) (1,110) (1,183) (747) (8,696)
Other revenue - 24 - 190 - 10 224
Non recurring
costs (214) (27) (150) - - - (391)
Segment operating
profit 951 169 96 417 (1,183) 294 744
/ (loss)
---------- ---------- -------- -------- -------- -------- --------
Finance income 36 - - - - - 36
Finance costs (16) - (2) - - - (18)
Segment profit
/ (loss) 971 169 94 417 (1,183) 294 762
before taxation
---------- ---------- -------- -------- -------- -------- --------
Segment assets Promotion Promotion Retail Retail Other Group
and
liabilities UK Germany UK Germany
as at 31 December GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
'14
Total segment
assets 5,558 2,786 4,869 1,681 1,059 15,953
Total segment
liabilities (2,540) (1,132) (1,138) (671) (694) (6,175)
Total net
assets 3,018 1,654 3,731 1,010 365 9,778
---------- ---------- -------- -------- -------- --------
5. Operating profit
The operating profit is stated after charging:
12 months 12 months
to to
December December
'15 '14
GBP'000 GBP'000
Motor vehicle leasing 68 63
Property leases 298 290
Amortisation of intangible
assets 16 19
Depreciation of property,
plant and equipment 439 461
---------- ----------
821 833
---------- ----------
Auditor's remuneration:
Fees payable for:
Audit of Company 19 18
Audit of subsidiary
undertakings 22 22
Tax services 4 4
Other services 2 7
---------- ----------
47 51
---------- ----------
Directors' remuneration 534 671
---------- ----------
6. Staff costs
The average number of employees in the Group during the period was as follows:
12 months 12 months
to to
December December
'15 '14
Executive Directors 3 3
Non-executive Directors 3 3
Administration 32 26
Telesales 64 65
Commercial 24 25
Maintenance 6 7
---------- ----------
132 129
---------- ----------
12 months 12 months
to to
December December
'15 '14
GBP'000 GBP'000
Wages and salaries 4,208 4,470
Social Security costs 497 524
Pensions 57 42
---------- ----------
4,762 5,036
---------- ----------
Details of Directors' emoluments, including details of share option schemes, are given in the remuneration report. These disclosures form part of the audited financial statements of the Group.
7. Non-recurring costs
During the previous period, the Group took steps to reduce costs and streamline overheads. As a result, non-recurring costs of GBP391,000 were incurred. This was as a result of redundancy costs (GBP230,000) and other costs (GBP11,000). The Group also made provision for possible retrospective costs in relation to UK centres (GBP150,000).
8. Finance income and costs
12 months 12 months
to to
December December
'15 '14
GBP'000 GBP'000
Finance costs:
Interest received - 36
Interest payable (28) (18)
9. Taxation
12 months 12 months
to to
December December
'15 '14
GBP'000 GBP'000
Current tax expense:
Current tax on profits for
the year 117 152
Adjustment for under provision
in prior periods 7 (20)
---------- ----------
Total current tax 124 132
Foreign tax:
Current tax on foreign income
for the period 25 34
Adjustment for under provision - -
in prior periods
---------- ----------
Total foreign tax 25 34
Deferred tax:
Credit in respect of tax (37) -
losses
Charge in respect of temporary 85 -
timing differences
---------- ----------
Total deferred tax 48 -
Income tax expense as reported
in the Income Statement 197 166
---------- ----------
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The differences are explained below:
12 months 12 months
to to
December December
'15 '14
GBP'000 GBP'000
Profit on ordinary activities
before tax 1,061 762
---------- ----------
Profit on ordinary activities
at the standard rate of
corporation tax in
the UK of 20.25% (2014:
21.5%)
Jan - Mar 2014: 23% - 44
Apr - Dec 2014: 21% - 120
Jan - Mar 2015: 21% 56 -
Apr - Dec 2015: 20% 159 -
Tax effect of:
7 -
* Prior period adjustment
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March 29, 2016 02:01 ET (06:01 GMT)
12 2
* Difference due to foreign taxation rates (37) -
* Tax losses
Income tax expense as reported
in the Income Statement 197 166
---------- ----------
10. Profit for the period
The Company has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements. The Group profit for the period includes a Company profit after tax and before dividends of GBP568k after the incorporation of all UK head office costs (2014: GBP4k) which is dealt with in the financial statements of the parent Company.
11. Dividends
12 months 12 months
to to
December December '14
'15
GBP'000 GBP'000
Paid during the period 390 800
Recommended final dividend 429 390
Equity - 2.00p per ordinary share proposed and paid for 2014. Recommended final dividend for 2015 - 2.20p per ordinary share.
The recommended final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in the financial statements.
12. Goodwill
Cost GBP'000
At 31 December 2013 8,225
Additions -
--------
At 31 December 2014 8,225
Additions -
--------
At 31 December 2015 8,225
--------
Accumulated impairment losses
At 31 December 2013 -
Charge for the period -
-------
At 31 December 2014 -
Charge for the period -
At 31 December 2015 -
-------
Net book value
At 31 December 2013 8,225
------
At 31 December 2014 8,225
------
At 31 December 2015 8,225
------
Goodwill acquired in a business combination is allocated at acquisition to the cash-generating units (CGUs) that are expected to benefit from that business combination. The Directors consider that the businesses of Retail Profile Holdings Limited and SpaceandPeople India Pvt Limited are identifiable CGUs and the carrying amount of Goodwill is allocated against these CGUs. No amortisation of the carrying value has been occurred at the financial statement review date. Goodwill for Retail Profile Holdings Limited remains unchanged at GBP7,981,000 and goodwill for SpaceandPeople India Pvt Limited remains unchanged at GBP244,000.
The recoverable amounts of the cash generating units are determined on value in use calculations which use cash flow projections based on financial budgets approved by the Board covering a five year period followed by a terminal factor at a discount rate of 6% per annum. Cash flow projections during the budget period are based on an average growth in EBITDA which the Directors consider to be very conservative given the plans for the businesses and the potential increased returns. As a result of the sensitivity analysis carried out, the Directors believe that any reasonable possible change in the key assumptions on which the recoverable amounts are based would not cause the aggregate carrying amounts to exceed the aggregate recoverable amounts of the cash generating units and that cash flows from these units will continue in line with expectations for the foreseeable future.
13. Other intangible assets
Cost Website Product Patents Total
&
development development trademarks
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2013 284 137 41 462
Additions - - 30 30
------------ ------------ ----------- --------
At 31 December
2014 284 137 71 492
Additions - - 15 15
------------ ------------ ----------- --------
At 31 December
2015 284 137 86 507
------------ ------------ ----------- --------
Amortisation Website Product Patents Total
&
development development trademarks
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2013 284 137 34 455
Charge for
the period - - 19 19
------------ ------------ ----------- --------
At 31 December
2014 284 137 53 474
Charge for
the period - - 16 16
------------ ------------ ----------- --------
At 31 December
2015 284 137 69 490
------------ ------------ ----------- --------
Net book Website Product Patents Total
value &
development Development trademarks
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2013 - - 7 7
------------- ------------- ----------- --------
At 31 December
2014 - - 18 18
------------- ------------- ----------- --------
At 31 December
2015 - - 17 17
------------- ------------- ----------- --------
14. Property, plant and equipment
The Group movement in property, plant & equipment assets was:
Cost Plant Fixture Computer Total
& &
equipment fittings equipment
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2013 2,071 258 443 2,772
Additions 210 - 35 245
---------- --------- ---------- --------
At 31 December
2014 2,281 258 478 3,017
Additions 626 - 64 690
---------- --------- ---------- --------
At 31 December
2015 2,907 258 542 3,707
---------- --------- ---------- --------
Depreciation Plant Fixture Computer Total
& &
Equipment Fittings Equipment
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2013 725 208 249 1,182
Charge for the
period 341 25 95 461
---------- --------- ---------- --------
At 31 December
2014 1,066 233 344 1,643
Charge for the
period 342 13 84 439
---------- --------- ---------- --------
At 31 December
2015 1,408 246 428 2,082
---------- --------- ---------- --------
Net book value Plant Fixture Computer Total
& &
equipment Fittings equipment
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2013 1,346 50 194 1,590
---------- --------- ---------- --------
At 31 December
2014 1,215 25 134 1,374
---------- --------- ---------- --------
At 31 December
2015 1,499 12 114 1,625
---------- --------- ---------- --------
15. Deferred tax
31 December 31 December
'15 '14
GBP'000 GBP'000
Deferred tax liability:
Deferred tax liability
to be recognised after
more than 12 months
95 10
Deferred tax assets:
Deferred tax asset
to be recognised after
less than 12 months (37) -
Deferred tax liability
(net) 58 10
============ ============
At 1 January 2015 10 10
Credit in respect
of losses (37) -
Charge in respect
of temporary timing
differences on property,
plant and equipment
85 -
At 31 December 2015 58 10
============ ============
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16. Trade and other receivables
31 December 31 December
'15 '14
GBP'000 GBP'000
Trade debtors 3,516 3,864
Other debtors 443 44
Prepayments 246 308
Accrued revenue - 5
Total 4,205 4,221
============ ============
Amounts falling 400 -
due after more
than one year
included above
are:
The maximum exposure to credit risk at the balance sheet date is the carrying amount of receivables detailed above. The Group does not hold any collateral as security.
The Directors do not believe that there is a significant concentration of credit risk within the trade receivables balance. As of 31 December 2015, trade receivables of GBP596k (2014: GBP685k) were past due but not impaired.
The ageing of trade debtors:
Current 0 - 31 - 61 Days Total
30 Days 60 Days +
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
31 December
'15 2,920 130 94 372 3,516
31 December
'14 3,179 167 127 391 3,864
17. Cash and cash equivalents
31 December 31 December
'15 '14
GBP'000 GBP'000
Cash at bank
and on hand 1,723 2,115
1,723 2,115
============ ============
18. Trade and other payables
31 December 31 December
'15 '14
GBP'000 GBP'000
Trade creditors 628 685
Other creditors 1,470 2,098
Social Security
and other taxes 610 613
Accrued expenses 1,342 1,707
Deferred income 456 732
Trade and other
payables 4,506 5,835
Corporation tax 18 (170)
------------ ------------
Total 4,524 5,665
============ ============
19. Other borrowings
31 December 31 December
'15 '14
GBP'000 GBP'000
Bank loan:
Less than one
year 250 250
Greater than
one year 750 250
1,000 500
============ ============
As at 31 December 2015, SpaceandPeople plc had drawn down GBP1,000,000 (2014: GBP500K) of its agreed bank facility of GBP2 million (2014: GBP2 million), GBP1 million of which expires in January 2016 and the other GBP1 million expires in July 2017.
20. Financial instruments and risk management
The Group has no material financial instruments other than cash, current receivables and liabilities, in both this and the prior period, all of which arise directly from its operations. The net fair value of its financial assets and liabilities is the same as their carrying value as detailed in the balance sheet and related notes.
Credit risk - The Group's credit risk relates to its receivables and is managed by undertaking regular credit evaluations of its customers.
Liquidity risk - The Group operates a cash-generative business and holds net funds. The Directors consider the funding structure to be adequate for the Group's current funding requirements.
Borrowing facilities - The Group has agreed facilities of GBP2 million, of which GBP1 million was utilised at the year end. GBP750,000 was drawn down from a GBP1 million facility, which expires in July 2017, at a rate of 2.99% above base rate. The other GBP250,000 was drawn down from the other GBP1 million facility, which expires in January 2016, at a rate of 3.69% above base rate. Both of these facilities are secured by an omnibus guarantee and set off agreement, secured by an unlimited debenture incorporating a bond and floating charge. These facilities improve the financial flexibility of the Group.
Financial assets - These comprise cash at bank and in hand. All bank deposits are floating rate.
Financial liabilities - These include short-term creditors and revolving credit facilities of GBP2million, of which GBP1 million was utilised at the year end. All financial liabilities will be financed from existing cash reserves and operating cash flows.
Foreign currency risk - The Group is exposed to foreign exchange risk primarily from Euros due to its German operations and Euro denominated licensing income as detailed in note 4 Segmental Reporting. The Group monitors its foreign currency exposure and hedges the position where appropriate. In addition, the Group has investments in a subsidiary in India.
21. Operating lease commitments
At the period end date, SpaceandPeople plc had outstanding commitments for future lease payments which fall due as follows:
31 December 31 December
'15 '14
GBP'000 GBP'000
Within 1 year 1,820 2,744
Between 2 and
5 years inclusive 1,239 4,439
22. Called up share capital
Allotted, issued and fully 31 December 31 December
paid '15 '14
Class Nominal
value
Ordinary 1p GBP 195,196 195,196
Number 19,519,563 19,519,563
23. Related party transactions
Compensation of key management personnel
Key management personnel of the Group are defined as those persons having authority and responsibility for the planning, directing and controlling the activities of the Group, directly or indirectly. Key management of the Group are therefore considered to be the directors of SpaceandPeople plc. There were no transactions with the key management, other than their emoluments, which are set out in the remuneration report.
24. Earnings per share
12 months to 12 months to
31 December 31 December
'15 '14
Pence per share Pence per share
Basic earnings per
share
Before non-recurring
costs 4.26p 3.91p
After non-recurring
costs 4.26p 2.34p
Diluted earnings per
share
Before non-recurring
costs 3.89p 3.51p
After non-recurring
costs 3.89p 2.10p
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.
Basic earnings per share
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
12 months to 12 months to
31 December 31 December
'15 '14
GBP'000 GBP'000
Profit after tax for
the period attributable
to 831 456
owners of the Company
12 months to 12 months to
31 December 31 December
'15 '14
'000 '000
Weighted average number
of ordinary shares 19,520 19,520
for the purposes of
basic earnings per
share
Diluted earnings per share
The earnings and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:
12 months to 12 months to
31 December 31 December
'15 '14
GBP'000 GBP'000
Profit after tax for
the period attributable
to 831 456
owners of the Company
12 months to 12 months to
31 December 31 December
'15 '14
'000 '000
Weighted average number
of ordinary shares 21,386 21,708
for the purposes of
diluted earnings per
share
The weighted average number of ordinary shares for the purposes of diluted earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows.
12 months to 12 months to
31 December 31 December
'15 '14
'000 '00
Weighted average number
of shares in issue 19,520 19,520
during the period
Weighted average number
of ordinary shares 1,866 2,188
used in the calculation
of basic earnings per
share deemed to be
issued for no
consideration in respect
of employee options
Weighted average number
of ordinary shares 21,386 21,708
used in the calculation
of diluted earnings
per
share
25. Share options
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The Group has established a share option scheme that senior executives and certain eligible employees are entitled to participate in at the discretion of the Board which is advised on such matters by the Remuneration Committee.
In aggregate, share options have been granted under the share option scheme over 1,000,307 ordinary shares exercisable within the dates and at the exercise prices shown below, being the market value at the date of the grant.
Date of grant Number Option period Price
14 January 2012 - 13
14 January 2009 8,000 January 2016 50p
1 June 2012 - 30 May
1 June 2009 12,307 2015 65p
12 January 2018 -
12 January 2015 980,000 12 January 2025 47.4p
The movement in the number of options outstanding under the scheme over the period is as follows:
12 months 12 months
to to
31 December 31 December
'15 '14
Number of options outstanding
as at the beginning of the
period 1,130,082 2,452,911
Granted 980,000 -
Lapsed (1,109,775) (1,322,829)
Forfeited (15,000) -
------------ ------------
Number of options outstanding
as at the end of the period 985,307 1,130,082
In total, 985,307 options were outstanding at 31 December 2015 (1,130,082 at 31 December 2014) with a weighted average exercise price of 47.6p (96.5p at 31 December 2014). Of these, 20,307 were exercisable (420,082 at 31 December 2014) with a weighted average exercise price of 59.1p (89.0p at 31 December 2014).
The total share-based payment charge for the year, calculated in accordance with IFRS2 on share based payments, was GBP3k (2014: GBPnil). No value has been included in the accounts for share options issued prior to 2012. The fair value of these options was assessed at the date of issue and deemed to such that no adjustment in the financial statements was required.
26. Save As You Earn Scheme
The Group has established a Save As You Earn ("SAYE") scheme that all UK based employees are entitled to participate in. The scheme will run for three years from 1 June 2015 and at the end of the term, participants will have the opportunity to buy shares in the Company at a price of 46p, which is a 20 percent discount on the closing share price on 2 April 2015.
In aggregate, share options have been granted under the SAYE scheme over 273,515 ordinary shares exercisable within the dates and at the exercise prices shown below, being the market value at the date of the grant.
Date of grant Number Option period Price
1 June 2018 - 30 November
28 April 2015 273,515 2018 46p
The movement in the number of options outstanding under the scheme over the period is as follows:
12 months
to
31 December
'15
Number of options outstanding -
as at the beginning of the
period
Granted 273,515
Forfeited (15,652)
------------
Number of options outstanding
as at the end of the period 257,863
In total, 257,863 options were outstanding at 31 December 2015 (none at 31 December 2014) with an exercise price of 46p (nil at 31 December 2014).
The total share-based payment charge for the year, calculated in accordance with IFRS2 on share based payments, was GBP7k (2014: GBPnil).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR QZLFLQXFBBBQ
(END) Dow Jones Newswires
March 29, 2016 02:01 ET (06:01 GMT)
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