entu (UK) plc Final Results (8045A)

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Entu (UK)	LSE:ENTU	London	Ordinary Share	GB00BQXKYQ29	ORD GBP0.0005

Industry Sector	Turnover	Profit	EPS - Basic	PE Ratio	Market Cap
	0	0		N/A	0

Entu (UK) (LSE:ENTU)
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TIDMENTU

RNS Number : 8045A

entu (UK) plc

29 March 2017

ENTU (UK) PLC

("Entu" or the "Group")

Results for the Year Ended 31 October 2016

Entu (UK) plc, the home improvements group providing energy efficiency products and services to homeowners and businesses across the UK, announces its results for the 12 months ended 31 October 2016.

Key Points

   --     EBITDA in line with expectations at GBP2.7m (2015: GBP7.6m).

-- Fundamental restructuring programme undertaken to reduce risk and focus on core Home Improvements business.

-- Adjusting for non-recurring items, underlying margins were steady at 31.3% (2015: 31.6%) and underlying EBITDA was unchanged at GBP2.4m (2015: GBP2.4m).

-- The restructuring programme, a detailed balance sheet review and revisions to accounting policies resulted in exceptional charges of GBP4.6m and contributed to losses on discontinued operations of GBP3.8m, with the Group reporting an overall loss for the year of GBP5.6m (2015: profit GBP2.7m).

   --     No final dividend proposed.  Group will return to the dividend list as soon as possible.

-- Immediate priorities are improving EPS, generating cash and strengthening controls in the core business.

   --     Positioned for a return to growth in 2018. 
 
 Year Ended 31 October                            2016    2015 
  Audited                                         GBPm    GBPm 
---------------------------------------------  -------  ------ 
 
 Underlying Results(1) 
 Revenue                                          87.7    89.6 
 Gross margin                                    31.3%   31.6% 
 EBITDA                                            2.4     2.4 
 
 Continuing Operations 
 EBITDA before exceptional items                   2.7     7.6 
 Operating profit before exceptional 
  items                                            2.5     7.2 
 Operating (loss)/profit after exceptional 
  items                                          (2.1)     6.7 
 
 Overall Results 
 (Loss)/profit for the year                      (5.6)     2.7 
 Basic (LPS)/EPS                                (8.6)p    4.2p 
 Net cash inflow from operations                   1.4     1.2 
 Net decrease in cash and cash equivalents       (0.7)   (4.3) 
 Cash and cash equivalents                         0.8     1.4 
 
 (1) Underlying results exclude exceptional and other 
  non-recurring items, but include overheads allocated 
  to discontinued businesses which have been or will 
  be absorbed back into continuing operations. Underlying 
  and reported revenues are the same. A reconciliation 
  between underlying and reported results is set out 
  in Note 31 to the Financial Statements.

Chief Executive, Ian Blackhurst, commented:

"This has been a very difficult year for the Group. Our challenges began in September 2015 when, following the Government's surprise reduction in solar feed-in-tariffs, we were forced to close our Solar business, leaving the Group with an overhead base designed for a larger business set on growth.

We had hoped that targeted acquisitions and organic growth in new, commercial business streams would cover the overhead base, but by the half year it was clear that this would not materialise quickly enough and we acted decisively to scale back on acquisitions, close underperforming businesses and execute a radical restructuring programme to improve operational efficiency and reduce costs in our core Home Improvements business.

The restructuring programme also highlighted operational weaknesses that we are addressing by strengthening our management team and improving controls and processes across the Group.

Despite all the challenges, our core Home Improvements business remains a UK market leader, and the underlying performance and cash generating ability of the Group remains substantially unchanged. There is still much work to do in 2017 and our immediate priorities are to focus on our core strengths, improve returns in our Home Improvements Division and reposition the business for growth in 2018."

For further information, please contact:

 
Entu 
Ian Blackhurst, Chief Executive Officer      020 7457 2020 
Neill Skinner, Chief Financial Officer 
 
Zeus Capital Limited (Broker and Nominated 
 Adviser) 
John Gould                                   020 3829 5000 
Dominic King 
Andrew Jones 
 
Instinctif Partners (Public Relations) 
Helen Tarbet                                 020 7457 2020 
James Gray

Notes to Editors

Entu (UK) plc (AIM: ENTU) is a leading home improvement group providing energy efficiency products and services to homeowners and businesses in the UK.

Headquartered in Cheshire, Entu has national presence through a network of strong regional brands such as Weatherseal, Penicuik and Zenith. The Group operates three business segments: home improvement products, energy generation and energy saving products and repairs and renewals services.

Entu operates in a growing marketplace with myriad opportunities. Entu's primary strategy is to focus on driving organic growth from its diversified, fully integrated product portfolio, and also, over time, through the development of new product and service offerings, in particular, energy efficiency products and services.

The Group was admitted to AIM in October 2014.

CHAIRMAN'S STATEMENT

Review of the Year

During the year, we have taken difficult, but necessary, actions to focus on improving returns and cash generation in our core Home Improvements business and to reduce risk across the Group.

Shortly before the last year end we closed our Solar business because of the Government's unexpected decision to reduce substantially the feed-in-tariffs for solar energy, rendering that business uneconomic. This left the Group with an overhead base that had been established for a larger and growing business which, as I said last year, either had to be absorbed by acquisitions and growth in new business streams, or cut back to fit a refocussed Home Improvements business. Our preference was to absorb these excess overheads through growth, but we did not consider any of the available acquisition opportunities sufficiently attractive and the new business streams did not produce the growth we were hoping for. Consequently, we restructured operations and cut overheads aggressively to create a robust platform that was fit for purpose and allow the Group to make a sensible return in due course.

In addition to closing our Solar business last year, we also sold our under-performing Norwood Interiors kitchens business, and this year, as part of a wide-ranging restructure of our operations, we closed our Europlas business to create greater focus and to improve returns across the Group. We also sold Astley Façades Limited ("Astley"), which we acquired in March 2015 and grew faster than expected, creating an increased working capital requirement and risk profile that no longer matched the Group's strategy going forward.

Finally, we undertook a detailed review of all our subsidiary company balance sheets to remove any remnants of those discontinued businesses, in order to provide a stable platform from which to trade forward. This is discussed in more detail in the "Financial Review".

Results

Group revenue from continuing operations was GBP87.7m (2015: GBP89.6m) and operating profit from continuing operations before exceptional items was GBP2.5m (2015: GBP7.2m).

After exceptional items of GBP4.6m (2015: GBP0.5m), the Group made an operating loss of GBP2.1m (2015: profit GBP6.7m) and with losses on discontinued operations of GBP3.8m (2015: GBP3.0m), the overall loss for the year was GBP5.6m (2015: profit of GBP2.7m). This provided a basic loss per share of 8.6p (2015: earnings per share of 4.2p).

Dividend

The Board declared and paid an interim dividend for the year of 0.5p per share. However, in the light of the restructuring of the Group and the final results for the year, the Board has reconsidered the dividend policy and, as announced on 7 February 2017, determined that it is not appropriate to recommend a final dividend for the year ended 31 October 2016. The Board intends that Entu return to the dividend list as soon as possible and the Directors will assess future dividends as the Group's balance sheet and distributable reserves strengthen.

Board

There have been several changes to the Board during the year. On 14 January 2016, Geoff Stevens stepped down as Chief Financial Officer and assumed the role of Non-Executive Director. After the conclusion of last year's Annual General Meeting, Geoff was appointed Chairman of the Audit Committee and became a member of the Remuneration Committee. On the same date, and following an extensive external search, it was announced that Neill Skinner had joined the Board as Chief Financial Officer on a full time basis.

Following the restructuring exercise, the Group announced on 19 July 2016 that Andrew Corless, Chief Operating Officer (appointed 14 January 2016), had resigned from the Board to pursue new opportunities.

Darren Cornwall stood down from the Board with effect from 15 April 2016 to work on a more flexible basis. Darren continues to work for the Group developing opportunities which have the scope to add value to the Group's product and service offering as well as assisting in margin improvement plans for execution in the coming months. Darren also provided project support in the corporate transactions described in the

"Review of the Year".

People

On behalf of the Board, I wish to thank all our people for their hard work, professionalism and commitment in delivering the restructuring programme and putting in place the changes necessary to improve the Group's return and cash generation.

Strategy

Whilst the focus in the past year has been on disposals and closures, the immediate focus is on securing gains from operational efficiencies and organic growth to return the Group to an acceptable level of profitability.

In the longer term it remains the Board's strategy to make selective acquisitions, and to enter commercial partnerships and distribution agreements in the product and geographical areas in which we currently operate, providing always that we can see a sensible return within a modest timescale.

However, the core strategy in the medium term remains unchanged. Entu is one of the UK's leading home energy efficiency groups providing energy efficiency products and services to homeowners and businesses nationwide. We are aiming to build a business that anticipates a broadening of its sales channels and is well placed to serve them, with an increasing range of products, through an efficient and established infrastructure.

The Board intends to take advantage of these new opportunities in time, but in the short term, we need to focus on our core business, improve returns, strengthen our balance sheet and ensure that the risks inherent in the Group remain properly managed and controlled.

David M Forbes

Chairman

CHIEF EXECUTIVE'S STATEMENT

Overview

This has been a challenging year for the Group. In September 2015, the Government announced a surprise and substantial reduction in solar feed-in-tariffs, and we were forced to close our profitable Solar business, a major contributor to our Energy Generation and Savings Division.

This, along with the sale of our Norwood kitchens business earlier in the year, resulted in a significant loss of revenue and contribution, and left us with GBP3.6m of central overheads designed for a larger business set on growth that would need to be absorbed by our continuing operations.

We had planned for targeted acquisitions and organic growth in new, commercial business streams, mainly in the Energy Generation and Savings Division, to cover these central overheads. However, the pipeline of acquisition targets did not offer any sufficiently attractive opportunities and growth in the new, commercial business streams was slower than planned.

Therefore, in May we acted decisively to restructure the Home Improvements Division, scale back our acquisition activity and close underperforming commercial business streams in the Energy Generation and Savings Division. These actions resulted in an exceptional charge of GBP1.9m in FY2016, and removed GBP2.1m of cost from the Group on an annualised basis. Combined with the actions we have taken since the year end, which are discussed under "Short-Term Priorities" below, we are targeting an overall annualised saving of GBP4.0m by the end of FY2017.

We have also strengthened our Executive Team with senior appointments in operations, finance, compliance and human resources.

Group revenues from continuing operations before exceptional items were down slightly at GBP87.7m (2015: GBP89.6m), mainly due to lower finance commissions following a reduction in interest rates offered on consumer finance products. However, despite the challenges we faced this year, underlying gross margins were relatively constant at 31.3% (2015: 31.6%) and underlying EBITDA was unchanged at GBP2.4m (2015: GBP2.4m).

The overall loss for the year, after exceptional items and losses on discontinued operations, was GBP5.6m, (2015: profit of GBP2.7m). The Group's results are discussed in more detail in the "Financial Review".

The decisive actions we have taken will allow us to focus on our core strengths, improve returns in our core Home Improvements Division and reposition the business for growth in 2018.

Divisional Review

Home Improvements

Our Home Improvements Division is one of the UK's largest providers of replacement windows, doors, conservatories and other home improvement products and, despite the challenges faced by the Group, remains a market leader. The Division sells to retail customers directly through its own brands or indirectly through partnerships with other home improvement businesses.

We had a slow start to the financial year due to management time being focussed on stabilising the Group after the rapid exit from our Solar business in September 2015. However, in the first two months of 2016, we enjoyed our highest ever rise in new orders, which reached record levels in the second quarter of the financial year.

Whilst this was a significant achievement for the sales teams across the Division, the pressure this order book growth placed on our installation operations, coupled with the focus brought on the business through the restructuring exercise, exposed weaknesses in the Division's operations both in the planning and delivery of new installations and the clearing down of remedial works. This, in turn, led to an increase in our debtor position in 2016. Since May, I have assumed direct responsibility for installation operations and, although it has taken more time to address all the issues than expected originally, significant progress has been made.

The transition to a single national sales and marketing function as part of the restructuring exercise resulted in an inevitable dip in new orders in the third quarter, but this allowed breathing space for our installation operations to bring the order book back into balance with our installation capacity and, by the end of the fourth quarter, we were back on track.

The Division was also successful in securing FCA authorisation as a credit broker for consumer finance products provided through our finance partners.

Energy Generation and Savings

As noted above, our Energy Generation and Saving Division has seen significant change in the year with the closure of new, commercial business streams that were under performing and the sale of Astley. At the year end, the Division comprised our insulation and new commercial LED lighting installation businesses.

Repairs and Renewals Service Agreements ("RRSA")

The RRSA Division offers customers an annual cover plan on many of its core products and the division performed in line with expectations.

Short Term Priorities

We have restructured our business to focus on our core Home Improvements Division. The decisive actions taken in 2016 have stabilised the business, and the priorities for 2017 are to improve returns, increase cash generation further, reduce risk and, ultimately, create a robust platform that will enable us to return to sustainable growth in 2018. To deliver this, we have strengthened our Executive Team with senior appointments in operations, finance, compliance and human resources, who will focus on the following priorities in 2017:

-- Deliver GBP4m annualised savings. We delivered GBP2.1m of annualised savings from the actions we took in 2016. Through further actions in 2017 to centralise service teams at our Head Office in the North West, focus installation administration in three major hub depots and further operational efficiencies, we plan to deliver a total of an annualised GBP4m of savings by the end of 2017.

-- Improve operational efficiency. As part of the restructure in 2016, we identified a series of measures to improve the efficiency of our service and installation teams to reduce the lead times from sale to installation, which will improve returns and cash collection.

-- Leverage supply chain. Through tighter quality control procedures and management of supply contracts, we can reduce wastage further and reduce inefficiency in operations. We will also review our contractual arrangements with suppliers to obtain improved prices and payment terms where we can.

-- Improve cash collection. We have undertaken a series of measures to improve cash collection, including the implementation of revised terms and conditions, tighter job completion procedures and the strengthening of the credit control function. We are also focussed on clearing the backlog of remedial work that arose during 2016.

-- Strengthen controls and processes. With senior appointments in finance, compliance and human resources, we will strengthen controls and processes across the Group to improve management information systems and reduce risk.

Strategy

Our overall vision to become the UK's leading installer of energy efficient products for retail and commercial customers remains unchanged, and the three steps required to deliver this vision are as follows:

-- Step 1 - Focus on Core Strengths. As noted above, our immediate priority is to focus on our core strengths and improve returns, generate cash and reduce risk in our Home Improvements Division.

-- Step 2 - Leverage Our Core Business. Once we have delivered a robust platform for growth in our core Home Improvements Division, we will look for consolidation opportunities around strong national brands that will allow us to create sales and marketing leverage through higher sales conversion ratios and operational leverage driven by a single, national installation service.

-- Step 3 - Build Our Energy Efficiency Offering. We will continue to invest in a select number of corporate relationships where we can build our portfolio of energy efficient products and expand our services into commercial markets in 2017, initially through outsourced delivery. Our key investment criteria, as well as producing returns at least equal to our core Home Improvements business, will be opportunities where we can influence sales directly and, eventually, absorb delivery capability into our national installation platform.

To provide greater clarity between our existing core retail markets and the significant growth opportunities open to us in commercial markets in 2017, we intend to simplify our internal segmental reporting of results in 2017 to "Retail" (i.e. B2C) and "Commercial" (i.e. B2B) to align our segmental analysis more closely with our expected customer base. Longer term, we also envisage reporting our national installation service, Job Worth Doing, as a separate profit centre.

Outlook

The firm and decisive actions we have taken in 2016 leave us leaner and more focussed. However, there is still much work to do to improve operational efficiency, clear down our backlog of remedial work and strengthen our controls and processes. We have defined plans to reduce costs further, but it remains a challenge to realise all the potential savings in 2017.

Nevertheless, revenues in the first quarter were ahead of plan and, if we can hold this level of performance and continue to make the progress we have already made in reducing costs, we can end the year in line with expectations with a robust platform for a return to growth in 2018.

Ian Blackhurst

Chief Executive

FINANCIAL REVIEW

Group Result

Continuing Operations Before Exceptional Items

Revenues were down slightly at GBP87.7m (2015: GBP89.6m) with nearly all the reduction due to lower finance commissions following a reduction in the interest rates charged on customer finance products.

Reported gross profit was also down at GBP27.5m (2015: GBP29.9m), but this year-on-year comparison does not reflect the underlying performance of the Group's continuing operations. As part of a detailed review of subsidiary balance sheets following the restructuring of the Group (see "Exceptional Items" below) we identified GBP1.6m of exceptional items that reduce the underlying comparative to GBP28.3m. On this basis, underlying gross margins were steady at 31.3% (2015: 31.6%).

As expected, EBITDA was GBP2.7m (2015: GBP7.6m), but again, a more meaningful year-on-year comparison needs to reflect the GBP1.6m of exceptional items referred to above. Furthermore, and as noted in the Chief Executive's Statement, the closure of the Solar business resulted in GBP3.6m of central overheads being disclosed as part of discontinued operations in 2015 which remained part of the continuing business in 2016. Adjusting for both these items in the 2015 comparative, and adjusting the 2016 result by GBP0.3m for central overheads allocated to discontinued operations in respect of Europlas and Astley, results in underlying EBITDA remaining unchanged at GBP2.4m. Operating profit was GBP2.5m (2015: GBP7.2m).

Overall Result

Exceptional items were GBP4.6m (2015: GBP0.5m), comprising of GBP1.9m of restructuring costs and GBP2.7m from the balance sheet review, resulting in an operating loss after exceptional items of GBP2.1m (2015: profit GBP6.7m).

After net finance costs of GBP0.2m (2015: GBPnil) and a tax credit of GBP0.5m (2015: tax charge GBP1.0m), the loss for the year from continuing operations was GBP1.8m (2015: profit GBP5.7m).

The overall loss for the year was GBP5.6m (2015: profit GBP2.7m) after losses from discontinued operations of GBP3.8m (2015: GBP3.0m).

Divisional Results

 
 Year Ended 31                  Home Improvements     Energy Generation         Repairs and            Group 
  October                                                 and Saving              Renewals 
                                                                             Service Agreements 
                                   2016       2015       2016       2015        2016        2015    2016    2015 
                                   GBPm       GBPm       GBPm       GBPm        GBPm        GBPm    GBPm    GBPm 
----------------------------  ---------  ---------  ---------  ---------  ----------  ----------  ------  ------ 
 
 Underlying Results(1) 
 Revenue                           77.1       79.2        8.0        7.7         2.6         2.7    87.7    89.6 
 Gross margin                     30.8%      31.6%      18.7%      15.4%       85.5%       76.1%   31.3%   31.6% 
 EBITDA                             0.1        0.5        0.1      (0.2)         2.2         2.1     2.4     2.4 
 
 Continuing Operations 
 EBITDA(2)                          0.4        4.6        0.1        0.9         2.2         2.1     2.7     7.6 
 Operating (loss)/profit(3)       (3.9)        3.7      (0.4)        0.9         2.2         2.1   (2.1)     6.7 
 
 (1) Underlying results exclude exceptional and other non-recurring 
  items, but include overheads allocated to discontinued businesses 
  which have been or will be absorbed back into continuing operations. 
  Underlying and reported revenues are the same. A reconciliation 
  between underlying and reported results is set out in Note 31 to 
  the Financial Statements. 
  (2) Before exceptional items. 
  (3) After exceptional items.

Home Improvements

Home Improvement revenues fell by 2.6% to GBP77.1m (2015: GBP79.2m), largely due to lower finance commissions. Underlying gross margin was slightly down at 30.8% (2015: 31.6%), again due to lower finance commissions, and underlying EBITDA was GBP0.1m (2015: GBP0.5m), with lower gross profit partly offset by overhead savings.

Operating loss from continuing operations and after exceptional items was GBP3.9m (2015: profit of GBP3.7m).

Energy Generation and Saving

Revenues were up 4.3% to GBP8.0m (2015: GBP7.7m) due to growth in our new LED installations business. Underlying gross margin also was higher at 18.7% (2015: 15.4%), again due to the higher margin LED business, and underlying EBITDA was GBP0.1m (2015: loss of GBP0.2m).

Operating loss from continuing operations and after exceptional items was GBP0.4m (2015: profit GBP0.9m).

Repairs and Renewals Service Agreements ("RRSA")

Revenue was GBP2.6m (2015: GBP2.7m), representing a steady proportion of Home Improvements revenues at 3.4% (2015: 3.4%). Operating profit from continuing operations and after exceptional items increased by 8.5% to GBP2.2m (2015: GBP2.1m).

Exceptional Items

The restructuring of the Group's operations, discussed in the Chief Executive's Statement, resulted in an exceptional charge of GBP1.9m in 2016. This charge is made up of redundancy and other employee related costs of GBP0.8m, full provision for onerous lease obligations for exited properties and dilapidation costs of GBP1.0m, and other associated restructuring costs of GBP0.1m.

Following the restructuring of the Group in the year, we undertook a detailed review of all subsidiary balance sheets and identified GBP2.7m of additional exceptional charges, bringing the total exceptional items in respect of continuing operations to GBP4.6m (2015: GBP0.5m). A detailed breakdown of the exceptional items in respect of continuing operations is set out in Note 5 to the Financial Statements.

The balance sheet review also resulted in a further GBP2.5m of exceptional charges relating to discontinued operations. These are included in the loss on discontinued operations, and a detailed breakdown is set out in Note 10 to the Financial Statements.

Interest and Taxation

Net finance costs were GBP0.2m (2015: GBPnil) and the trading losses in the year resulted in a tax credit of GBP0.9m (2015: tax charge of GBP1.0m), with GBP0.5m in respect of continuing operations and GBP0.4m for discontinued operations.

Discontinued Operations

As part of the restructure of the Home Improvements Division, we closed our regional head offices to create a national sales, marketing and operational management structure, closed under-performing depots and exited our Europlas business which operated predominantly in the South West of England. Although Europlas turned a small profit, results were declining and there were significant marketing and operational challenges that management were unable to address. We decided, therefore, to focus resources on improving performance in our larger operations in Home Improvements Division. The loss before taxation on Europlas, after exceptional costs, was GBP1.6m.

We also decided to sell Astley which we acquired on 27 March 2015 primarily as a platform for our insulation business to expand into new, commercial markets. In the time that we owned Astley, we grew the orderbook from GBP2m to GBP21m and secured a number of high-profile contracts. However, the market for Astley's services had moved towards larger, construction contracts and, with the need to restructure the Group and focus on the core Home Improvements Division, the risk profile no longer fitted within the Group. This came into sharp focus when an unexpected contractual issue arose in the late stages of the sale process, as a result of which, we took the difficult decision to sell the business for GBP1, rather than fund a lengthy dispute process.

The sale completed on 27 October 2016 and, although this resulted in a loss on sale of GBP1.7m, and, an overall loss before taxation for the year of GBP0.7m, Entu made a gross return of GBP2.7m during its period of ownership, and a net return of GBP0.9m after loss on sale and disposal costs.

Finally, the Group continued to incur unanticipated costs in relation to the discontinued Solar business and identified exceptional items as part of the balance sheet review, resulting in a loss before taxation, after exceptional costs, of GBP1.9m.

A detailed breakdown of the Group's discontinued operations is set out in Note 10 to the Financial Statements.

Dividend

As noted in the Chairman's Statement, the Board declared and paid an interim dividend of 0.5p per share, but in light of the results for the financial year, and as announced on 7 February 2017, the Board has determined that it is not appropriate to recommend a final dividend in respect of the 2016 financial year. The Board will assess its future dividend policy for the Group once distributable reserves are strengthened.

Accounting Policy Review

We conducted a review of our accounting policies to ensure they were in line with best practice and appropriate to the business going forward. This resulted in the accounting for our Repairs and Renewals Service Agreements and finance commissions being changed to reflect more appropriately the timing of revenue recognition as well as other adjustments to bring accounting policies in line across the Group.

The impact of these adjustments on the results for both 2016 and 2015 was less than GBP0.1m, but resulted in a reduction in opening reserves of GBP1.6m after a tax credit of GBP0.4m.

A detailed analysis of the impact of the change in accounting policies is set out in Note 2 to the Financial Statements.

Balance Sheet

The Group's only freehold site in was sold to Ian Blackhurst at the end of October 2016. The sale price of GBP0.5m, and the future rental charge, were determined through independent valuers on an arm's length basis and were approved by the Non-Executive Directors in advance of the transaction. This allows the Group more flexibility in its property strategy as support functions become centred in the North West.

Inventories reduced to GBP1.3m (2015: GBP1.8m) largely due to a GBP0.5m exceptional charge resulting from the balance sheet review. Similarly, trade and other receivables fell to GBP8.1m (2015: GBP14.1m) largely due to exceptional charges resulting from the balance sheet review and sale of Astley.

Trade payables were GBP18.5m (2015: GBP17.5m) with decreases in trade creditors and accruals being offset by an increase in deferred income and advanced payments resulting from the accounting policy changes and leveraging terms with suppliers.

Overall, net liabilities were GBP8.3m (2015: GBP0.6m) with the reduction due to losses after exceptional items, discontinued operations and changes in accounting policies.

Capital Structure

During March 2017, the Group extended it facilities with Barclays Bank plc, with the renewal of its GBP4m revolving credit facility for 12-months alongside the Group's existing variable overdraft facility.

Cash Flow

Net cash generated from operations was GBP1.4m (2015:GBP1.2m). Cash outflows in relation to the restructuring programme and losses on discontinued operations were offset by advanced payments of finance commissions and improved terms from suppliers.

Cash outflows on interest, taxation and the purchase of plant and equipment were offset by the receipt from the sale of our Winsford depot. After dividends paid of GBP2.1m (2015: GBP2.7m), of which GBP1.8m related to the final dividend for 2015 and GBP0.3m to the 2016 interim dividend, there was net decrease in cash and cash equivalents of GBP0.7m (2015: net decrease of GBP4.3m).

Short-Term Priorities

This has been a difficult, but necessary year, focussing on reducing central overheads and building a stable platform for future growth. The short-term focus will be on improving returns, generating cash and strengthening controls and processes across the Group to reduce risk further.

Neill Skinner

Chief Financial Officer

CONSOLIDATED INCOME STATEMENT

 
                                                             2016       2015 
Year ended 31 October                                               Restated 
                                                  Notes  GBP000's   GBP000's 
-----------------------------------------------   -----  --------  --------- 
 
Continuing operations 
Revenue                                             4      87,745     89,563 
Cost of sales                                            (60,284)   (59,645) 
 
Gross profit                                               27,461     29,918 
 
Administrative expenses                                  (24,994)   (22,658) 
 
Operating profit before exceptional items                   2,467      7,260 
 
Exceptional items                                   5     (4,581)      (518) 
 
Operating (loss)/profit after exceptional 
 items                                                    (2,114)      6,742 
 
Finance income                                      8           -          4 
Finance costs                                       8       (219)       (27) 
 
(Loss)/profit before taxation                             (2,333)      6,719 
 
Taxation credit/(charge)                            9         512      (973) 
 
(Loss)/profit for the year from continuing 
 operations                                         6     (1,821)      5,746 
 
Discontinued operations 
Loss for the year from discontinued operations     10     (3,801)    (3,032) 
 
(Loss)/ profit for the year                        23     (5,622)      2,714 
------------------------------------------------  -----  --------  --------- 
 
 
Continuing basic (loss)/earnings per share 
 (pence)                                           12       (2.8)        8.8 
 
Discontinued basic loss per share (pence):         12       (5.8)      (4.6) 
 
Total basic (loss)/earnings per share (pence)      12       (8.6)        4.2 
------------------------------------------------  -----  --------  --------- 
 
Diluted continuing operations (loss)/earnings 
 per share (pence)                                  12      (2.8)        8.8 
------------------------------------------------  -----  --------  ---------

Adjusted earnings per share is shown in note 12 to the accounts.

The notes 1 to 31 are an integral part of these Consolidated Financial Statements.

There are no other items of comprehensive income for the year other than the (loss)/profit for the year attributable to the equity holders.

CONSOLIDATED BALANCE SHEET

 
At 31 October                                2016           2015       2014 
                                                        Restated   Restated 
                                  Notes  GBP000's       GBP000's   GBP000's 
--------------------------------  -----  --------  -------------  --------- 
 
Assets 
Non-current assets 
Intangible assets                  13       1,141          1,496      1,676 
Property, plant and equipment      14         481            948      1,048 
Deferred tax asset                 19         418              -         19 
--------------------------------  -----  --------  -------------  --------- 
                                            2,040          2,444      2,743 
--------------------------------  -----  --------  -------------  --------- 
 
Current assets 
Inventories                        15       1,267          1,839      1,751 
Trade and other receivables        16       8,103         14,089     10,029 
Cash and cash equivalents          17         768          1,435      5,768 
--------------------------------  -----  --------  -------------  --------- 
                                           10,138         17,363     17,548 
--------------------------------  -----  --------  -------------  --------- 
 
Total assets                               12,178         19,807     20,291 
--------------------------------  -----  --------  -------------  --------- 
 
Equity 
Share capital                      22          50             50         50 
Accumulated losses                        (8,356)          (655)      (663) 
--------------------------------  -----  --------  -------------  --------- 
Total shareholders' deficit               (8,306)          (605)      (613) 
--------------------------------  -----  --------  -------------  --------- 
 
Liabilities 
Non-current liabilities 
Deferred taxation liabilities      19           -             60         40 
Provisions                         20         403          1,318      1,488 
--------------------------------  -----  --------  -------------  --------- 
                                              403          1,378      1,528 
--------------------------------  -----  --------  -------------  --------- 
 
Current liabilities 
Trade and other payables           18      18,465         17,477     17,149 
Current taxation liabilities                   54            532      1,798 
Provisions                         20       1,562          1,025        429 
--------------------------------  -----  --------  -------------  --------- 
                                           20,081         19,034     19,376 
--------------------------------  -----  --------  -------------  --------- 
 
Total liabilities                          20,484         20,412     20,904 
--------------------------------  -----  --------  -------------  --------- 
 
Total shareholders' deficit and 
 liabilities                               12,178         19,807     20,291 
--------------------------------  -----  --------  -------------  ---------

The Financial Statements were approved by the Board of Directors on 28 March 2017 and authorised for issue on 28 March 2017. They were signed on its behalf by:

Neill Skinner

Chief Financial Officer

28 March 2017

Entu (UK) plc

Registered number 08957339

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
Year ended 31 October                                    Share  Accumulated  Total Shareholders' 
                                                       Capital       Losses              Deficit 
                                               Notes  GBP000's     GBP000's             GBP000's 
---------------------------------------------  -----  --------  -----------  ------------------- 
 
At 1 November 2014 (restated)                               50        (663)                (613) 
 
Profit for the financial year                                -        2,714                2,714 
 
Transactions with owners: 
Dividends                                       11           -      (2,736)              (2,736) 
Share based payment charge                      26           -           30                   30 
Total transactions with owners recognised 
 directly in equity                                          -      (2,706)              (2,706) 
---------------------------------------------  -----  --------  -----------  ------------------- 
 
At 31 October and 1 November 2015 (restated)                50        (655)                (605) 
 
Loss for the financial year                                  -      (5,622)              (5,622) 
 
Transactions with owners: 
Dividends                                       11           -      (2,079)              (2,079) 
Total transactions with owners recognised

 directly in equity                                          -      (2,079)              (2,079) 
---------------------------------------------  -----  --------  -----------  ------------------- 
 
At 31 October 2016                                          50      (8,356)              (8,306) 
---------------------------------------------  -----  --------  -----------  -------------------

Share Capital

The share capital account includes the nominal value for all shares issued and outstanding.

Accumulated Losses

The 'Accumulated Losses' column in the Statement of Changes in Equity includes the accumulated profits and losses arising from the Consolidated Income Statement and certain items from the Consolidated Statement of Changes in Equity attributable to equity shareholders, net of distributions to shareholders.

The notes 1 to 31 are an integral part of these Financial Statements.

CONSOLIDATED CASH FLOW STATEMENT

 
Year ended 31 October                                    2016      2015 
                                              Notes  GBP000's  GBP000's 
-------------------------------------------   -----  --------  -------- 
 
 
Cash flows from operating activities 
Cash generated from operations                 24       1,382     1,180 
Taxation paid                                            (12)   (2,216) 
Interest received                                           -         4 
Interest paid                                           (232)      (27) 
--------------------------------------------  -----  --------  -------- 
Net cash generated from/(used in) 
 operating activities                                   1,138   (1,059) 
--------------------------------------------  -----  --------  -------- 
 
Cash flows from investing activities 
Purchase of property, plant and equipment      14       (189)     (258) 
Proceeds from disposal of property 
 plant and equipment                           27         463         - 
IPO fees                                                    -   (1,320) 
Acquisition of subsidiary, net of 
 cash acquired                                 10           -     1,040 
 
Net cash generated from/(used in) 
 investing activities                                     274     (538) 
--------------------------------------------  -----  --------  -------- 
 
Cash flows from financing activities 
Dividends paid to equity shareholders          11     (2,079)   (2,736) 
--------------------------------------------  -----  --------  -------- 
Net cash used in financing activities                 (2,079)   (2,736) 
--------------------------------------------  -----  --------  -------- 
 
Net decrease in cash and cash equivalents               (667)   (4,333) 
 
Cash and cash equivalents at the beginning 
 of the year                                            1,435     5,768 
 
Cash and cash equivalents at the end 
 of the year                                   17         768     1,435 
--------------------------------------------  -----  --------  --------

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Preliminary announcement

While the financial information included in this preliminary announcement has been computed in accordance with IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The accounting policies used are consistent with those in the Group's Statutory Financial Statements for the year ended 31 October 2016 which have yet to be published. The key accounting policies applied by the Group have been set out below. The preliminary results for the year ended 31 October 2016 were approved by the Board of Directors on 28 March 2017.

The financial information set out in this preliminary announcement does not constitute the Group's Statutory Financial Statements for the year ended 31 October 2016 but is derived from those Financial Statements which were approved by the Board of Directors on 28 March 2017. The auditors have reported on the Group's Statutory Financial Statements and the report was unqualified and did not contain a statement under section 498 (2) or 498 (3) Companies Act 2006. The Statutory Financial Statements for the year ended 31 October 2016 have not yet been delivered to the Registrar of Companies and will be delivered following the Company's Annual General Meeting.

General information

Entu (UK) plc ('the Company') and its subsidiaries (together "the Group") principal activity during the year was the sale of replacement windows, double glazing, entrance doors, patio doors and exterior improvement products within the United Kingdom. Other activities, included within discontinued operations were solar home improvement products and within the Astley Facades UK group of companies, the provision of façade facilities for both new build construction and refurbishment products.

The Company is incorporated and domiciled in the UK. The Company's registered number is 08957339. The address of its registered office is 7 Road One, Winsford Industrial Estate, Winsford, Cheshire CW7 3PZ.

The Company is a public limited company and has its primary listing on the AIM division of the London Stock Exchange.

The Group Consolidated Financial Statements were authorised for issue by the Board on 28 March 2017.

Directors

The Directors of the Group during the year ended 31 October 2016 were as follows:

Executive

Ian Blackhurst, Chief Executive Officer

Neill Skinner, full time Chief Financial Officer appointed 14 January 2016.

Andrew Corless, Chief Operating Officer, appointed 14 January 2016, resigned 19 July 2016.

Darren Cornwall, Corporate Development Officer, resigned 15th April 2016, (see note 27 for services to the Group after he resigned as Director).

Geoff Stevens resigned as part time Chief Financial Officer 14 January 2016.

Non-Executive

David Forbes, Chairman

Geoff Stevens, appointed 14 January 2016 and appointed Chair of Audit Committee, 29 March 2016.

Lorraine Clinton, Chair of Remuneration Committee.

1. Accounting policies

The principal accounting policies applied in the preparation of these Consolidated Financial Statements are set out in this note. These policies have been consistently applied to all the years presented, unless otherwise stated.

Basis of preparation

The Consolidated Financial Statements of the Group have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS as adopted by the EU), IFRS Interpretations Committee (IFRS IC) Interpretations and the Companies Act 2006 applicable to companies reporting under IFRS. The Consolidated Financial Statements have also been prepared under the historical cost convention. Where it is appropriate to modify the historical cost convention, for example to value derivatives at fair value through profit and loss, the Group has a policy to do so.

The Financial Statements have been prepared in GBP, being the Group's presentational and functional currency and have been presented in thousands.

The preparation of Financial Statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of critical complexity, or areas where assumptions and estimates are significant to the Consolidated Financial Statements are disclosed in note 2.

During the year ended 31 October 2016 various prior year adjustments were recorded in order to amend accounting policies, in order to ensure they were in line with best practice and appropriate to the business going forwards. See note 2 to the accounts.

Basis of consolidation

Subsidiaries are defined as entities over which the Group exercises control. The Group controls an entity when the Group has power over an entity, is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect these returns through its power over the entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. The Group has applied IFRS 10 retrospectively in accordance with transition provisions of IFRS 10.

The Group applies the acquisition method to account for business combinations. The cost of an acquisition is measured as the fair value of the assets given, equity interests issued and liabilities incurred or assumed at the date of exchange.

The excess of the cost of an acquisition over the fair value of the Group's share of the identifiable net assets of the subsidiary acquired is recorded as goodwill. If the cost of the acquisition is less than the Group's share of net assets of the subsidiary acquired, the difference is recognised in the statement of comprehensive income.

Acquisition costs are expensed as incurred and included within exceptional items.

The accounting periods of the majority of subsidiary undertakings are coterminous with those of the Company. For subsidiaries with a different year end than the Parent Company, adjustments are made for material transactions or balances.

Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.

When the Group ceases to have control any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount recognised in profit or loss. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit and loss.

Adoption of new or amended standards and interpretations in the current year

Changes in accounting policy and disclosures

New standards, amendments and interpretations

No new standards, amendments or interpretations, effective for the first time for the financial year beginning on or after 1 November 2015 have had a material impact on the Group or Parent Company. No standards have been early adopted.

New standards, amendments and interpretations not yet adopted

A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 November 2015 and have not been applied in preparing these Financial Statements. None of these are expected to have a significant effect on the Financial Statements of the Group or Parent Company, except the following, set out in the following sections relating to accounting standards.

Standards

IFRS 9

IFRS 9 'Financial Instruments' addresses the classification, measurement and recognition of financial assets and financial liabilities. It replaces the guidance in IAS 39 that relates to the classification and measurement of financial instruments. IFRS 9 retains but simplifies the mixed measurement model and established three primary measurement categories for financial assets: amortised cost, fair value through OCI and fair value through the statement of comprehensive income. The basis of classification depends on the entity's business model and contractual cash flow characteristics of the financial asset. Investment in equity instruments are required to be measured at fair value through the statement of comprehensive income. Investments in equity instruments are required to be measured at fair value through the statement of comprehensive income with the irrevocable option at inception to present changes in fair value in other comprehensive income not recycling.

There is now an expected credit losses model that replaces the incurred loss impairment model used in IAS 39. There were no changes to classification and measurement except for the recognition of changes in own credit risk, for liabilities designated at fair value through profit and loss, recognised in the statement of other comprehensive income. IFRS 9 relaxes the requirements for hedge effectiveness by replacing the bright line effectiveness tests. It requires an economic relationship between the hedged item and hedging instrument and for the 'hedged ratio' to be the same as the one management actually uses for risk management purposes. Contemporaneous documentation is still required but it is different from that currently prepared under IAS 39. The standard is effective for periods beginning on or after 1 January 2018. Early adoption is permitted, subject to EU endorsement. The full impact of IFRS 9 has not yet been assessed.

IFRS 15

IFRS 15 'Revenue from Contracts with Customers' deals with revenue recognition and establishes principles for reporting useful information to users of the Financial Statements about the nature, timing, and uncertainty of revenue and cash flows arising from the entity's contracts with customers. Revenue is recognised when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from that good or service. The standard replaces IAS 18 'Revenue'. The standard is effective for annual periods beginning on or after 1 January 2018 and earlier application is permitted. The full impact of IFRS 15 is in the process of being assessed.

IFRS 16

IFRS 16 'Leases' addresses the definition of a lease, recognition and measurement of leases and establishes principles for reporting useful information to the users of Financial Statements about the leasing activities of both lessees and lessors. A key change arising from IFRS 16 is that most operating leases will be accounted for on balance sheet as lessees. The standard replaces IAS 17 'Leases' and related interpretations. The standard is effective for annual periods beginning on or after 1 January 2019 and earlier application is permitted, subject to EU endorsement and the entity adopting IFRS 15 'Revenue from Contracts with Customers' at the same time. The full impact of IFRS 16 has not yet been assessed.

Amendments to accounting standards

Annual improvements 2010-2012 (effective 1 July 2014 and endorsed for 1 February 2015)

Annual improvements 2011-2013 (effective 1 July 2014 and endorsed for 1 January 2015)

Amendment to IAS 19 'Employee Benefits' on defined benefit plans (effective 1 July 2014 and endorsed for 1 February 2015).

The adoption of amendments to these standards has not had a material impact for the year ended 31 October 2016.

Going concern

The Financial Statements have been prepared on a going concern basis. For the purpose of considering going concern the Directors have considered a period of at least 12 months from the date of approving these Financial Statements and have made the following assumptions around future trading: (i) revenues over the next 12 months are at similar levels to 2016 reported revenues; (ii) margins show a modest increase over 2016 following actions taken to improve operational efficiency and reduce costs in 2016; (iii) there is no material change to the Group's operating model or existing supply relationships; (iv) the Group is able to retain the benefit of the cost savings realised in 2016 following the actions taken to restructure the Group, as discussed in the "Chief Executive's Statement"; and (v) the key risks set out in the "Principal Risks and Uncertainties" section of the "Strategic Review" will not crystallise or have a material impact upon the Group within the next 12 months. The Directors have modelled a series of sensitivities around these assumptions taking into account reasonable, possible changes in trading performance and determined that there is sufficient headroom in the Group's facilities and/or mitigating actions available. The Directors have no reason to believe that the facilities will not be renewed upon expiry.

Revenue

The Group recognises revenue from the sale of goods and services when it has transferred significant risks and rewards of ownership to the buyer. For most of the Group's products the recognition will be when the installation is substantially complete. Where installation is completed in stages, revenue will be recognised by reference to the stage of completion of the transaction at the balance sheet date.

The Group receives commissions for introducing finance products to customers as finance commission income. Finance commission income is recognised in line with the revenue recognition policy for the product to which the finance commission relates.

Repairs and Renewals Service Agreement (RRSA) income is spread over the life of the relevant agreement and amounts received in advance are treated as deferred income.

Revenue received in advance of the recognition criteria outlined above is accounted for as deferred income within trade and other payables in the Financial Statements. Where the revenue recognition criteria have been met, but revenue has not been invoiced, the revenue is accrued on the balance sheet within prepayments and accrued income or other receivables.

Revenue is recognised net of VAT and any sales discounts and rebates offered.

Exceptional items

Exceptional items are considered by the Directors. The Directors apply judgement in assessing the particular items, which, by virtue of their scale and nature should be disclosed separately, as the Directors consider they are not representative of the underlying trading of the Group. Exceptional items may include restructuring expenses, onerous lease and dilapidation provisions, balance sheet impairments and other non-trading items.

Goodwill

Goodwill represents the excess of the purchase price of a business combination over the Group's interest in the fair value of identifiable net assets, liabilities and contingent liabilities acquired. The purchase price includes the fair value of contingent consideration where appropriate. Direct costs of acquisition are recognised immediately as an expense in profit or loss.

Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the Consolidated Income Statement. Where the fair value of identifiable assets, liabilities and contingent liabilities exceeds the fair value of consideration paid, the excess is credited in full to the Consolidated Income Statement on the date of acquisition.

Impairments

The carrying values of the Group's assets are reviewed at each balance sheet date.

Goodwill is allocated to each of the Group's cash generating units expected to benefit from the business combination. Cash generating units to which goodwill has been allocated are tested annually for impairment, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit.

An impairment loss recognised for goodwill is not reversed in a subsequent period. On disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Impairment charges are included in profit or loss.

Other assets are reviewed to see if an indication of impairment exists. If any such indication exists, the assets recoverable amount is estimated.

The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of assets is impaired. For example, evidence of impairment might include indications that the asset will fail to generate cash or other forms of cash benefit to the Group in the future.

Share capital

Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Group's ordinary and deferred shares are classified as equity instruments.

Dividends

Final dividends are recognised when they are approved and become legally payable. Interim dividends are recognised when paid.

Dividends were paid out of Entu (UK) plc reserves, which had sufficient positive reserves at the date of the dividend distribution.

Taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised on other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of tax laws enacted or substantively enacted at the balance sheet date in the UK. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. However deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill, deferred income tax is not accounted for if it arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither the accounting nor taxable profit nor loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred tax income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred tax income assets are recognised on deductible temporary differences arising from the investment in subsidiaries, associates and joint arrangements only to the extent that it is probable that the temporary difference will reverse in the future and there is sufficient taxable profit available against which the temporary difference can be utilised.

Property plant and equipment

Assets are stated at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the item concerned.

Depreciation is charged so as to write off the cost or valuation of assets, other than land, over their estimated useful lives, using the straight-line method, on the following basis:

 
 Freehold property        5% per annum 
 Plant and machinery     33% per annum 
 Fixtures and fittings   33% per annum 
 Equipment               33% per annum 
 Motor vehicles          33% per annum

Depreciation is included within administrative expenses in the income statement.

Residual values, remaining useful lives and depreciation methods are reviewed annually and adjusted if appropriate.

Profits or losses on disposal of property, plant and equipment are included in the profit or loss for the year within administrative costs.

Trade receivables

Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle if the business if longer) they are classified as current assets. If not, they are presented as non-current assets.

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method, less provision for impairment. A provision for impairment is made when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables, and is measured as the difference between the carrying value and the present value of estimated future cash flows. Additionally, management use their judgement to assess the recoverability of debt in the light of circumstances within individual subsidiaries. Subsequent recoveries of previously impaired trade receivables are recognised as a credit to profit as recorded.

Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business, if longer). If not, they are presented as non- current liabilities.

Trade payables are not interest bearing, and are stated at fair value.

Deferred income, payments on account and advance payments are included within the category of trade and other payables and are not interest bearing.

Cash and cash equivalents

In the Consolidated Statement of Cash Flows, cash and cash equivalents include cash in hand, cash deposits held at call with banks and bank overdrafts. In the consolidated balance sheet where there is a bank overdraft which is not subject to a bank offset arrangement, it is included within borrowings in current liabilities.

Financial instruments

The Group classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.

Financial instruments are recognised on the balance sheet at fair value when the Group becomes a party to the contractual provisions of the instrument.

Borrowings

Interest-bearing bank loans and overdrafts are recorded at fair value, net of direct issue costs and directly attributable transaction costs, where applicable. Finance charges, are accounted for on an accruals basis through the income statement.

Operating leases

Payments made under operating leases are recognised in profit and loss on a straight-line basis over the term of the lease. The aggregate benefit of lease incentives is recognised as a reduction of the rental expense over the lease term on a straight-line basis.

Finance income and costs

Finance income and costs are recognised in the income statement on an accruals basis.

Inventories

Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. Cost comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. It excludes borrowing costs. Weighted average cost is used to determine the cost of ordinarily interchangeable items. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

Discontinued operations

A discontinued operation is a component of the Group's business that represents a separate major line of business or geographical area of operations that has been sold, closed, or operations have ceased.

Discontinued operations are presented in the Consolidated Income Statement as a single line which comprises the post-tax profit or loss of the discontinued operations concerned, together with the post-tax gain or loss recognised on sale or closure.

Prior periods are restated for comparative purposes.

Segmental reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Chief Operating Decision Maker (CODM), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Board.

Provisions

A provision is recognised in the balance sheet date if, as a result of a past event, the Group has a present, legal or constructive obligation that can be estimated fairly, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are not recognised for future operating losses.

Provisions recognised are the best estimate of the net expenditure required to settle the obligation at the reporting date, taking into account the nature of the provision.

Employee benefits and share based payments

Pension schemes

The Group operates post- employment benefit schemes in the form of contributions to defined contribution schemes but does not operate a defined benefit pension scheme. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current period and prior periods. Contributions to defined contribution schemes are charged to the Consolidated Income Statement on an accruals basis.

Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits at the earlier of the following dates a) when the group can no longer withdraw the offer of those benefits b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 and involves the payment of termination benefits.

Share based payments

The Company offers a Long Term lncentive Plan ('LTIP') and a Management Incentive Plan ('MIP') for a small senior management cohort, a Company Share Option Plan ('CSOP') for a wider management group and an all employee 'Save As You Earn' scheme ('SAYE').

All schemes are subject to a three-year vesting period and are designed to align employee interests with shareholder interests.

Under the terms of these share based compensation plans the entity receives services from employees as consideration for equity instruments (options) of the Group. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the options granted including any market performance conditions (for example share price) and excluding non-market conditions (such as profitability) and including the impact of any non-vesting conditions for example the requirement of employees to save or hold on to shares for a specific period of time. At the end of each reporting period, the Group adjusts the charge in the income statement in respect of revised estimates of the number of options that are expected to vest based on the non-market vesting conditions and service conditions.

2. Prior year adjustments and critical accounting estimates and judgements

The Group has disclosed certain prior year adjustments relating to changes to accounting policies or the application of those accounting policies. This has had a material impact on revenue recognition and cost of sales within the income statement, as well as impacting the balance sheets and statement of changes in equity for the prior two accounting periods, see 'Prior year adjustments'.

The Group makes certain critical estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Future actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed in 'Critical accounting estimates, judgments and key sources of estimation uncertainty'.

Prior year adjustments

During the year, the Directors undertook a review of the Group's revenue recognition policies and the application of those policies. As a result of this review, the Directors have taken the decision to change their accounting policies for certain revenue streams to better reflect industry practices and to align policies more consistently across the Group.

In accordance with IAS 8, the change in accounting policies has been applied retrospectively and the comparative financial information has been restated, as has the opening balance sheet as at 1 November 2014. The table below sets out the impact of the changes in accounting policies on both the profit for the year ended 31 October 2015 and the equity of the Group as at 1 November 2014 and 31 October 2015.

Impact of prior year adjustments on profit and equity of the Group

 
Year ended 31 October                                          2015 
                                                           GBP000's 
------------------------------------------------------    --------- 
 
Profit after tax as previously reported                       2,744 
Change in RRSA revenue recognition (i)                         (76) 
Change in other home improvements revenue recognition 
 (ii)                                                           380 
Change in finance commission revenue recognition 
 (iii)                                                         (84) 
Change in application of deferred commission 
 accounting policy (iv)                                       (258) 
Adjustment to tax in respect of changes to income 
 recognition (v)                                                  8 
--------------------------------------------------------  --------- 
Restated profit after tax                                     2,714 
--------------------------------------------------------  --------- 
 
 
At 31 October                                                  2015      2014 
                                                           GBP000's  GBP000's 
------------------------------------------------------    ---------  -------- 
 
Total equity as previously reported                             959       921 
Change in RRSA revenue recognition (i)                      (1,217)   (1,141) 
Change in other home improvements revenue recognition 
 (ii)                                                         (545)     (925) 
Change in finance commission revenue recognition 
 (iii)                                                          124       208 
Change in application of deferred commission 
 accounting policy (iv)                                       (327)      (69) 
Adjustment to tax in respect of changes to income 
 recognition (v)                                                401       393 
--------------------------------------------------------  ---------  -------- 
Restated deficit                                              (605)     (613) 
--------------------------------------------------------  ---------  --------

(i) Historically the Group recognised revenue in relation to the RRSA programme on a cash received basis. However, as the RRSA programme results in a 12-month commitment to customers the Directors have determined that it would be appropriate to spread the revenue over the 12-month contract period.

(ii) On review of recognition of revenue across the Group's businesses it was concluded that for certain types of installations in certain subsidiaries, there was a different interpretation of the point of completion of installation. In some cases, revenue was being recognised prior to the substantial completion of the installations. The Directors have determined that a consistent measurement criteria should be used across the Group to determine the point at which the substantial risks and rewards of ownership are deemed to have transferred.

(iii) Historically the Group recognised finance commissions on receipt from finance providers. There has been limited history of non-collection of commissions and, therefore, the Directors think it more appropriate to recognise finance commissions in line with the revenue recognition policy to which the product associated the finance commission relates.

(iv) The Group defers sales commissions costs incurred in a financial year which are considered to be directly related to revenue transactions which are not recognised until subsequent financial years. As part of the review of the Group's revenue recognition policy the Group aligned policies on deferred commissions across the Group. This has resulted in certain costs being required to be recognised earlier than previously recognised. The current and prior years cost of sales numbers have been restated in this respect.

(v) Taxation charges have been adjusted in respected of changes to income recognition and deferred commissions.

The overall impact on the restated 2015 Consolidated Income Statement was to increase revenue by GBP176,000 and increase costs of sales by GBP214,000, thereby reducing operating profit by GBP38,000. The changes to revenue recognition and associated cost of sales led to a small tax reduction of GBP8,000 in the restated 2015 tax charge.

Changes (i)-(iv) impacted on revenue and cost of sales in the restatement of the 2015 comparative in the Consolidated Income Statement Change (v) impacted on the tax charge. The overall impact on profit after tax for the restated 2015 comparative was GBP30,000. The Consolidated Income Statement for 2015 was also restated in respect of discontinued operations (see note 10) which accounts for the remaining differences between originally reported numbers in 2015 and the restated numbers shown as a comparative for 2015 in the 2016 Consolidated Income Statement.

Impact of prior year adjustments on the Consolidated Balance Sheets of the Group

 
At 31 October 2015          As reported    Change        Change       Change        Change        Change  Restated 
                             previously   in RRSA      in other   in finance   in deferred   In taxation 
                                                        revenue   commission    commission 
                                                    recognition 
                                              (i)          (ii)        (iii)          (iv)           (v) 
                               GBP000's  GBP000's      GBP000's     GBP000's      GBP000's      GBP000's  GBP000's 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
 
Assets 
Non-current assets 
Intangible assets                 1,496         -             -            -             -             -     1,496 
Property, plant 
 and equipment                      948         -             -            -             -             -       948 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
                                  2,444         -             -            -             -             -     2,444 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
 
Current assets 
Inventories                       1,839         -             -            -             -             -     1,839 
Trade and other 
 receivables                     15,078         -         (786)          124         (327)             -    14,089 
Cash and cash equivalents         1,435         -             -            -             -             -     1,435 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
                                 18,352         -         (786)          124         (327)             -    17,363 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  --------

Total assets                     20,796         -         (786)          124         (327)             -    19,807 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Equity 
Share capital                        50         -             -            -             -             -        50 
Retained earnings/ 
 (accumulated losses)               909   (1,217)         (545)          124         (327)           401     (655) 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
Total shareholders' 
 equity/(deficit)                   959   (1,217)         (545)          124         (327)           401     (605) 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Liabilities 
Non-current liabilities 
Deferred taxation 
 liabilities                         60         -             -            -             -             -        60 
Provisions                        1,318         -             -            -             -             -     1,318 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
                                  1,378         -             -            -             -             -     1,378 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
                                                                                                       - 
Current liabilities 
Trade and other 
 payables                        16,501     1,217         (241)            -             -             -    17,477 
Current taxation 
 liabilities                        933         -             -            -             -         (401)       532 
Provisions                        1,025         -             -            -             -             -     1,025 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
                                 18,459     1,217         (241)            -             -         (401)    19,034 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Total liabilities                19,837     1,217         (241)            -             -         (401)    20,412 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Total shareholders' 
 equity/(deficit) 
 and liabilities                 20,796         -         (786)          124         (327)             -    19,807 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  --------

(i) Changes in accounting policies for RRSA resulted in increased deferred income, which is included in trade and other payables category of liabilities.

(ii) Changes in accounting policies for other revenue recognition had the impact of reducing trade receivables, prepayments, accrued income and other receivables within the trade and other receivables category of asset.

(iii) Changes in accounting policies for finance commission had the impact of increasing the trade and other receivables category of asset.

(iv) Changes in the accounting for deferred commission had the impact of decreasing the trade and other receivables category of asset.

(v) The current taxation liability has been adjusted in respect of the reduction to tax charges as a consequence of changes to income recognition and deferred commissions.

 
At 31 October 2014          As reported    Change        Change       Change        Change        Change  Restated 
 and                         previously   in RRSA      in other   in finance   in deferred   In taxation 
 1 November 2014                                        revenue   commission    commission 
                                                    recognition 
                                              (i)          (ii)        (iii)          (iv)           (v) 
                               GBP000's  GBP000's      GBP000's     GBP000's      GBP000's      GBP000's  GBP000's 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
 
Assets 
Non-current assets 
Intangible assets                 1,676         -             -            -             -             -     1,676 
Property, plant 
 and equipment                    1,048         -             -            -             -             -     1,048 
Deferred tax asset                   19         -             -            -             -             -        19 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
                                  2,743         -             -            -             -             -     2,743 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Current assets 
Inventories                       1,751         -             -            -             -             -     1,751 
Trade and other 
 receivables                     11,060         -       (1,170)          208          (69)             -    10,029 
Cash and cash equivalents         5,768         -             -            -             -             -     5,768 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
                                 18,579         -       (1,170)          208          (69)             -    17,548 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Total assets                     21,322         -       (1,170)          208          (69)             -    20,291 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Equity 
Share capital                        50         -             -            -             -             -        50 
Retained earnings/ 
 (accumulated losses)               871   (1,141)         (925)          208          (69)           393     (663) 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
Total shareholders' 
 equity/(deficit)                   921   (1,141)         (925)          208          (69)           393     (613) 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Liabilities 
Non-current liabilities 
Deferred taxation 
 liabilities                         40         -             -            -             -             -        40 
Provisions                        1,488         -             -            -             -             -     1,488 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
                                  1,528         -             -            -             -             -     1,528 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Current liabilities 
Trade and other 
 payables                        16,253     1,141         (245)            -             -             -    17,149 
Current taxation 
 liabilities                      2,191         -             -            -             -         (393)     1,798 
Provisions                          429         -             -            -             -             -       429 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
                                 18,873     1,141         (245)            -             -         (393)    19,376 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Total liabilities                20,401     1,141         (245)            -             -         (393)    20,904 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  -------- 
 
Total shareholders' 
 equity/(deficit) 
 and liabilities                 21,322         -       (1,170)          208          (69)             -    20,291 
--------------------------  -----------  --------  ------------  -----------  ------------  ------------  --------

(i) Changes in accounting policies for RRSA resulted in increased deferred income, which is included in trade and other payables category of liabilities.

(iii) Changes in accounting policies for finance commission had the impact of increasing the trade and other receivables category of asset.

(iv) Changes in the accounting for deferred commission had the impact of decreasing the trade and other receivables category of asset.

(v) The current taxation liability has been adjusted in respect of the reduction to tax charges as a consequence of changes to income recognition and deferred commissions.

Critical accounting estimates, judgments and key sources of estimation uncertainty

Impairment of goodwill

The assessment of whether impairment charges are required against the carrying value of goodwill is made using value in use calculations. Although these calculations require the use of estimates including the discount rate, long term growth rate and forecasts (see note 13) the Directors do not believe there are any reasonably possible changes to the estimates made which would result in additional impairment charges. The changes in assumptions regarding future trading of discontinued operations resulted in the impairment charges made in the year which have been reflected within exceptional items within the Group's discontinued operations results.

Recoverability of trade receivables

The assessment of whether trade receivables are recoverable requires judgement. An allowance for impairment is made where there is an identified loss event which, based on experience, is evidence of a reduction in the recoverability of cash flows. Additionally, management use their judgement to assess the recoverability of debt in the light of circumstances within individual subsidiaries.

Deferred income and advance payments

Certain payments made by customers, suppliers, and service providers are received in advance of when they are due and are accounted for as creditors within the category deferred income and advance payments. The Directors made the judgement that this best represented the form and substance of the deferred income and advance payments.

Provisions

The Directors recognise a provision on the balance sheet where the Group has a known liability to transfer economic benefits but the liability is uncertain in timing or amount. Management uses judgement in estimating materially accurate outcomes based on estimates of a range of probabilities for each category of provision.

3. Financial risk management

General objectives, policies and processes

The Directors of Entu (UK) plc have overall responsibility for the determination of the Group's risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Group's finance function.

The overall objective of the Directors is to set policies that seek to reduce risk as far as possible without unduly affecting the Group's competitiveness and flexibility.

In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes the Group's objectives, policies and processes for managing those risks and the method used to measure them. Further quantitative information in respect of these risks is presented throughout these Financial Statements.

Financial instruments include trade receivables, trade payables and cash and cash equivalents which are treated as loans and receivables or financial liabilities at amortised cost for IFRS 7 classification purposes.

Credit risk

Credit risk is the risk that financial loss arises from the failure of a customer or counterparty to meet its obligations under a contract. The Group has dedicated standards, policies and procedures to control and monitor all such risks. Although the Group is potentially exposed to credit loss in the event of non-performance by counterparties, such credit risk is managed through third party credit rating agencies (for corporate customers) and internal financial reviews of the counterparties involved, and by limiting the total amount of exposure to any one party.

The credit rating awarded to Barclays Bank from a variety of external agencies is in the range of A to A-.

The Group is also exposed to credit risk in respect of amounts due from trade receivables. Given the nature of the Group's operations and customer base there is no concentration of credit risk to the Group. Therefore, no additional disclosure has been provided in respect of the credit worthiness of counterparties given that they are largely individuals and not companies.

Liquidity risk

Group Finance prepares and monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom through undrawn borrowing facilities. Such forecasting takes into account borrowing limits or covenant compliance. Liquidity risk arises from the Group's management of working capital, being the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The Group therefore monitors its risk to a shortage of funds through cash management procedures and the regular reviews of cash forecasts. The Group's objective is to maintain a balance in the continuity of its available funds to allow it to invest as necessary.

Capital risk management

The primary objective of the Group's capital management process is to ensure that it maintains a strong credit rating and healthy capital ratios. The Group manages its capital structure and makes adjustments to suit economic conditions. The Group's financing decisions are taken by the Board of Directors based on forecasts of the expected timing and level of capital and operating expenditure required to meet Group's commitments and development plans.

The Group sets the amount of capital required in proportion to risk. The Group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the dividends paid to shareholders, return capital to shareholders or issue new shares. The Group does not seek to maintain any particular capital ratio, but will consider opportunities on their merits and fund them in the most effective manner.

Fair value and cash flow interest rate risk

The Group had no outstanding loan balances other than short term overdrafts and revolving credit facilities during the year. Therefore, a change in LIBOR of 1%, being the average change in the LIBOR rate seen over the last 12 months, would change the Group's loss before tax by an insignificant amount of less than GBP0.1m.

Financial instruments by category

 
At 31 October 2016               Loans and      Financial 
                               receivables    liabilities 
                                             at amortised 
                                                     cost 
                                  GBP000's       GBP000's 
--------------------------    ------------  ------------- 
 
Assets 
Trade receivables                    4,074              - 
Cash and cash equivalents              768              - 
----------------------------  ------------  ------------- 
Total assets                         4,842              - 
----------------------------  ------------  ------------- 
 
Liabilities 
Trade payables                           -       (10,346) 
----------------------------  ------------  ------------- 
Total liabilities                        -       (10,346) 
----------------------------  ------------  ------------- 
 
Net assets/(liabilities)*            4,842       (10,346) 
----------------------------  ------------  ------------- 
 
 
At 31 October 2015               Loans and      Financial 
 Restated                      receivables    liabilities 
                                             at amortised 
                                                     cost 
                                  GBP000's       GBP000's 
--------------------------    ------------  ------------- 
 
Assets 
Trade receivables                    4,500              - 
Cash and cash equivalents            1,435              - 
----------------------------  ------------  ------------- 
Total assets                         5,935              - 
----------------------------  ------------  ------------- 
 
Liabilities 
Trade payables                           -       (13,239) 
----------------------------  ------------  ------------- 
Total liabilities                        -       (13,239) 
----------------------------  ------------  ------------- 
 
Net assets/(liabilities)*            5,935       (13,239) 
----------------------------  ------------  -------------

*This represents the net financial instrument balances included within the consolidated balance sheet net assets and liabilities.

4. Segmental analysis

The Chief Operating Decision Maker (CODM) has been identified as the Executive Board which comprises the two Executive Directors.

The CODM reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports which include an allocation of central costs as appropriate.

The CODM considers the business from an operating perspective, with Home Improvements, Energy Generation and Saving, Repair and Renewal Service Agreements being the three reporting segments. The CODM assesses the performance based on operating profit before exceptional items. Other information provided to the CODM, except as noted below, is measured in a manner consistent with that of the Financial Statements.

All revenue, profit and assets of the Group and all segments arise in the Group's country of domicile, being the United Kingdom.

 
Year ended 31 October 2016                          Home  Energy Generation        Repair and                    Total 
                                            Improvements        and Savings   Renewal Service 
                                                                                   Agreements 
                                                GBP000's           GBP000's          GBP000's                 GBP000's 
-----------------------------------------  -------------  -----------------  ----------------  ----------------------- 
 
Revenue                                           77,113              8,017             2,615                   87,745 
-----------------------------------------  -------------  -----------------  ----------------  ----------------------- 
 
Operating profit before exceptional 
 items                                               193                 38             2,236                    2,467 
Exceptional items                                (4,146)              (435)                 -                  (4,581) 
-----------------------------------------  -------------  -----------------  ----------------  ----------------------- 
Operating (loss)/ profit                         (3,953)              (397)             2,236                  (2,114) 
Finance costs                                      (219)                  -                 -                    (219) 
-----------------------------------------  -------------  -----------------  ----------------  ----------------------- 
(Loss)/profit before taxation-continuing 
 operations                                      (4,172)              (397)             2,236                  (2,333) 
-----------------------------------------  -------------  -----------------  ----------------  ----------------------- 
 
Loss for the year from discontinued 
 operations*                                     (2,258)            (1,543)                 -                  (3,801) 
-----------------------------------------  -------------  -----------------  ----------------  -----------------------

*Loss before tax from discontinued operations was GBP4,196,000. A tax credit of GBP395,000 was utilised in arriving at the loss after tax of GBP3,801,000.

There was no material inter-segment revenue in the year ended 31 October 2016.

The current year analysis is consistent with the prior year analysis, as restated for discontinued operations and prior year adjustments.

 
Year ended 31 October 2015                          Home  Energy Generation        Repair and     Total 
 Restated                                   Improvements        and Savings   Renewal Service 
                                                                                   Agreements 
                                                GBP000's           GBP000's          GBP000's  GBP000's 
-----------------------------------------  -------------  -----------------  ----------------  -------- 
 
Revenue                                           79,168              7,685             2,710    89,563 
-----------------------------------------  -------------  -----------------  ----------------  -------- 
 
Operating profit before exceptional 
 items                                             4,312                887             2,061     7,260 
Exceptional items                                  (518)                  -                 -     (518) 
-----------------------------------------  -------------  -----------------  ----------------  -------- 
Operating (loss)/ profit                           3,794                887             2,061     6,742 
Finance income                                         4                  -                 -         4 
Finance costs                                       (27)                  -                 -      (27) 
-----------------------------------------  -------------  -----------------  ----------------  -------- 
(Loss)/profit before taxation-continuing 
 operations                                        3,771                887             2,061     6,719 
-----------------------------------------  -------------  -----------------  ----------------  -------- 
 
Loss for the year from discontinued 
 operations*                                         107            (3,139)                 -   (3,032) 
-----------------------------------------  -------------  -----------------  ----------------  --------

*There was no tax charge or credit in respect of discontinued operations in the year ended 31 October 2015.

There was no material inter-segment revenue in the year ended 31 October 2015.

5. Exceptional items

 
Year ended 31 October                                    2016      2015 
                                                     GBP000's  GBP000's 
-------------------------------------------------    --------  -------- 
 
Restructuring and commercial 
Restructuring                                           1,930         - 
Other commercial                                          547         - 
Aborted acquisition costs                                   -       235 
---------------------------------------------------  --------  -------- 
                                                        2,477       235 
  -------------------------------------------------  --------  -------- 
 
Other 
Dilapidations provisions                                  244         - 
Inventory write down and provisioning                     482         - 
Other balance sheet items not deemed recoverable        1,378         - 
Property costs                                              -       115 
Directors' bonuses                                          -       168 
---------------------------------------------------  --------  -------- 
                                                        2,104       283 
  -------------------------------------------------  --------  -------- 
 
Total continuing operations                             4,581       518 
---------------------------------------------------  --------  --------

Restructuring and commercial

Restructuring costs relate to the restructuring of the Group announced as part of the Group's Interim Results for the six months to April 2016, in July 2016. The costs include: redundancy /other employee related costs arising from a reduction in headcount (GBP781,000), provision for onerous lease obligations for exited properties / estimated dilapidation costs (GBP979,000), and other associated restructuring costs (GBP170,000). Other commercial costs (GBP547,000) relates to provisions for various commercial matters including associated legal and professional settlement costs.

Other

A detailed review of the Group's subsidiary balance sheets identified GBP2,104,000 of further exceptional items relating to balances that were not deemed recoverable (with GBP1,652,000 originating in 2015 and GBP452,000 originating in earlier years). These adjustments included a large number of relatively small items, principally prepayments and other receivables, which will have no impact on the future cash flows of the Group.

Exceptional costs in the year ended 31 October 2015

Exceptional costs in the prior year relate to costs associated with the acquisition of the Astley business in March 2015. Also included were certain costs relating to planned acquisitions which were subsequently aborted and certain other non- trading items.

Discontinued operations also include costs that are classified as exceptional, which are further set out in note 10.

6. (Loss)/ profit for the year from continuing operations

 
Year ended 31 October                                   2016       2015 
                                                               Restated 
                                                    GBP000's   GBP000's 
-----------------------------------------   ------  --------  --------- 
 
(Loss)/profit for the year has been 
 arrived at after charging/ (crediting): 
Depreciation of property, plant and 
 equipment                                    (i)        237        349 
Profit on disposal of property, plant 
 and equipment (note 27)                               (213)          - 
Cost of inventories purchased for resale     (ii)     23,737     29,173 
Costs of inventories written down                         55          - 
Employee costs                               (iii)    11,613     12,033 
Operating lease costs                                  1,578      2,350 
Auditors' remuneration (see below)                       320         86 
--------------------------------------------------  --------  ---------

(i) Additional depreciation charged relating to discontinued operations is included within the total depreciation charge in note 14.

(ii) Cost of inventories written off excludes further write off of inventories disclosed in exceptional items amounting to GBP482,000 (2015: nil).

(iii) Employee costs relate to continuing operations only. Total employee costs including discontinued operations are shown in note 7.

A more detailed analysis of auditors' remuneration is provided below.

 
Year ended 31 October                                             2016      2015 
                                                              GBP000's  GBP000's 
----------------------------------------------------------    --------  -------- 
 
Fees payable to the Company's auditors for the audit 
 of the Company's annual accounts 
 and consolidation                                                  20        15 
 
Fees payable to the Company's auditors and their 
 associates for other services to the Group: 
The audit of the Company's subsidiaries                            150        71 
------------------------------------------------------------  --------  -------- 
Total audit fees                                                   170        86 
 
Fees payable to the Company's auditors and its associates 
 for other services: 
Corporate finance services                                         150         - 
------------------------------------------------------------  --------  -------- 
Total fees                                                         320        86 
------------------------------------------------------------  --------  --------

7. Directors and employees

Employee costs

 
Year ended 31 October                                2016      2015 
                                                   Number    Number 
---------------------------------------------    --------  -------- 
 
The average number of employees (including 
 Executive Directors) was as follows: 
Depot staff                                           120       135 
Administration, professional, supervisory 
 and other staff                                      240       301 
-----------------------------------------------  --------  -------- 
Total                                                 360       436 
-----------------------------------------------  --------  -------- 
 
 
Year ended 31 October                                2016      2015 
                                                 GBP000's  GBP000's 
---------------------------------------------    --------  -------- 
 
The costs incurred in respect of the above 
 were as follows: 
Wages and salaries                                 11,567    10,793 
Social security costs                               1,145     1,561 
Share based payments (note 26)                          -        30 
Pension costs (note 21) defined contribution 
 plans                                                385       290 
-----------------------------------------------  --------  -------- 
                                                   13,097    12,674 
  ---------------------------------------------  --------  --------

Employee costs in the year include almost a full year of wages and salaries for the Astley business, whereas this was only included for six months in the prior year. The Astley business is included within discontinued operations (note 10).

Directors' remuneration

 
Year ended 31 October                                  2016      2015 
                                                   GBP000's  GBP000's 
-----------------------------------------------    --------  -------- 
 
The costs incurred in respect of the Directors 
 and former Directors were as follows: 
Short term employee benefits                            820       635 
Compensation for loss of office                          45         - 
Other pension costs                                      17        14 
                                                        882       649 
  -----------------------------------------------  --------  --------

Additional payments were made to a former Director, see note 27.

Emoluments by Director for all Directors who served during the year ended 31 October 2016, including former Directors Darren Cornwall and Andrew Corless, were as follows:

 
Year ended 31 October     Salary     Bonus  Benefits  Compensation  Total emoluments 
 2016                                                          for 
                                                       for loss of 
                                                            office 
                        GBP000's  GBP000's  GBP000's      GBP000's          GBP000's 
----------------------  --------  --------  --------  ------------  ---------------- 
 
Ian Blackhurst               220         -        15             -               235 
Neill Skinner                122         -        23             -               145 
Geoff Stevens                 70         -         5             -                75 
Lorraine Clinton              31         -         -             -                31 
David Forbes                  56         -         -             -                56 
Darren Cornwall               74         -         5             -                79 
Andrew Corless               148        55        13            45               261 
----------------------  --------  --------  --------  ------------  ---------------- 
                             721        55        61            45               882 
----------------------  --------  --------  --------  ------------  ----------------

Benefits include contributions to defined contribution pension schemes of GBP17,000 in total for Neill Skinner, Ian Blackhurst and former director Andrew Corless. Other benefits include car allowances and healthcare insurance. Former Director Darren Cornwall received payments for services provided post his resignation date of 15 April 2016. See note 27 related party transactions for details of these payments of GBP53,000 which were made on an arm's length basis.

For the year ended 31 October 2016 the highest paid Director received GBP261,000 of emoluments. In the prior year ended 31 October 2015, the highest paid Director received total remuneration of GBP285,000 and pension contributions of GBP1,200.

Short term employment benefits include a bonus of GBP55,000. No share options, shares or other benefits were awarded to Directors in the year or upon commencement of employment. There are no pension benefits accruing to Directors, the only pension payments are made to defined contribution schemes. For further disclosures regarding Directors' emoluments, see the Remuneration Report which contains information relating to Directors in office as at 31 October 2016.

8. Finance income and costs

 
Year ended 31 October         2016      2015 
                          GBP000's  GBP000's 
----------------------    --------  -------- 
 
Interest receivable              -         4 
Interest payable             (219)      (27) 
------------------------  --------  -------- 
Net finance costs            (219)      (23) 
------------------------  --------  --------

Interest payable includes bank loan and overdraft interest.

9. Taxation

Continuing operations taxation is shown separately on the income statement whereas the taxation relating to discontinued operations is shown within the loss on discontinued operations. See note 10 for analysis of discontinued operations.

Continuing operations

 
Year ended 31 October                                 2016       2015 
                                                             Restated 
                                                  GBP000's   GBP000's 
----------------------------------------------    --------  --------- 
 
Current tax 
UK corporation tax charge for the year                   -        925 
Adjustments in respect of prior years                 (85)         24 
------------------------------------------------  --------  --------- 
Total current tax (credit)/ charge                    (85)        949 
------------------------------------------------  --------  --------- 
 
Deferred tax (note 19) 
Origination and reversal of temporary timing 
 differences                                          (41)         24 
Losses expected to reverse in the foreseeable 
 future                                              (386)          - 
------------------------------------------------  --------  --------- 
Total deferred tax(credit)/ charge                   (427)         24 
------------------------------------------------  --------  --------- 
 
Total tax(credit)/ charge                            (512)        973 
------------------------------------------------  --------  ---------

Discontinued operations

 
Year ended 31 October                                 2016      2015 
                                                  GBP000's  GBP000's 
----------------------------------------------    --------  -------- 
 
Current tax 
UK corporation tax credit for the year               (343)         - 
------------------------------------------------  --------  -------- 
Total current tax credit                             (343)         - 
------------------------------------------------  --------  -------- 
 
Deferred tax 
Losses expected to reverse in the foreseeable 
 future-continuing operations                         (52)         - 
------------------------------------------------  --------  -------- 
Total deferred tax credit                             (52)         - 
------------------------------------------------  --------  -------- 
 
Total tax credit discontinued operations             (395)         - 
------------------------------------------------  --------  --------

Reconciliation of total taxation (credit)/charge

 
Year ended 31 October                                     2016       2015 
                                                                 Restated 
                                                      GBP000's   GBP000's 
--------------------------------------------------    --------  --------- 
 
(Loss)/profit before tax on continuing operations      (2,333)      6,719 
Loss before tax on discontinued operations 
 (note 10)                                             (4,196)    (3,032) 
----------------------------------------------------  --------  --------- 
                                                       (6,529)      3,687 
 
Tax at the UK corporation tax rate of 20.0% 
 (2015: 20.4%)                                         (1,306)        752 
Tax effect of expenses that are not deductible             211        197 
Tax effect of losses not expected to be 
 recoverable                                               257          - 
Effect of tax rate changes                                  16          - 
Adjustments in respect of prior periods                   (85)         24 
Tax (credit)/ charge for the year                        (907)        973 
----------------------------------------------------  --------  --------- 
 
Reconciliation of total taxation: 
Tax (credit) /charge for continuing operations           (512)        973 
Tax credit for discontinued operations                   (395)          - 
----------------------------------------------------  --------  --------- 
Total tax (credit)/charge for the year                   (907)        973 
----------------------------------------------------  --------  ---------

The year ended 31 October 2016 tax credit relating to discontinued operations wholly arises from trading within discontinued operations. None of the tax credit relates to the loss on disposal of discontinued operations. The Group utilises group relief as appropriate amongst trading subsidiaries.

Factors that may affect future tax charges

Changes to the UK corporation tax rates were substantively enacted as part of the Finance Bill 2015 (on 26 October 2015) and Finance Bill 2016 (on 7 September 2016). These include reductions to the main rate to reduce the rate to 19% from 1 April 2017 and to 17% from 1 April 2020. Deferred taxes at the balance sheet date have been measured using those estimated tax rates and reflected in these Financial Statements (see note 19).

10. Discontinued Operations

During the year, the Group took the strategic decision to sell the Astley Facades (UK) Limited business (Astley) as well as close its loss making Europlas operations in the South East of England. The Directors consider both businesses to be separate major lines of business and as such the results of both businesses have been presented in discontinued operations in the current year with the prior year financial information being restated in accordance with IFRS 5.

In the year ended 31 October 2015 the Group also took the decision to close its Solar operations and the results were presented as discontinued operations in that year and have been treated consistently in the current financial year. The Norwood UK kitchen interiors business was also discontinued in the year ended 31 October 2015.

The trading results and exceptional items relating to these discontinued operations together with the loss on disposal of Astley were as follows:

 
Year ended 31 October 2016     Astley  Europlas     Solar     Total 
                             GBP000's  GBP000's  GBP000's  GBP000's 
---------------------------  --------  --------  --------  -------- 
 
Revenue                        15,452     2,954         -    18,406 
Cost of sales                (13,221)   (2,113)     (452)  (15,786) 
---------------------------  --------  --------  --------  -------- 
Gross profit/(loss)             2,231       841     (452)     2,620 
 
Administrative expenses       (1,192)   (1,200)     (211)   (2,603) 
---------------------------  --------  --------  --------  -------- 
Operating profit/ (loss) 
 before exceptional costs       1,039     (359)     (663)        17 
Exceptional costs                   -   (1,253)   (1,207)   (2,460) 
---------------------------  --------  --------  --------  -------- 
Operating profit/(loss)         1,039   (1,612)   (1,870)   (2,443) 
Loss on disposal of Astley    (1,740)         -         -   (1,740) 
Finance costs                     (2)       (7)       (4)      (13) 
---------------------------  --------  --------  --------  -------- 
Loss before tax                 (703)   (1,619)   (1,874)   (4,196) 
---------------------------  --------  --------  --------  -------- 
 
Taxation credit                                                 395 
---------------------------  --------  --------  --------  -------- 
Loss after taxation                                         (3,801) 
---------------------------  --------  --------  --------  -------- 
 
 
Year ended 31 October 2015     Astley  Europlas     Solar   Norwood     Total 
Restated                     GBP000's  GBP000's  GBP000's  GBP000's  GBP000's 
---------------------------  --------  --------  --------  --------  -------- 
 
Revenue                         6,625     3,021    14,521     3,342    27,509 
Cost of sales                 (5,305)   (2,134)  (12,181)   (2,666)  (22,286) 
---------------------------  --------  --------  --------  --------  -------- 
Gross profit                    1,320       887     2,340       676     5,223 
 
Administrative expenses         (726)     (754)   (5,179)   (1,296)   (7,955) 
---------------------------  --------  --------  --------  --------  -------- 
Operating profit/ (loss) 
 before exceptional costs         594       133   (2,839)     (620)   (2,732) 
Exceptional costs                   -         -     (300)         -     (300) 
---------------------------  --------  --------  --------  --------  -------- 
Operating profit/(loss)           594       133   (3,139)     (620)   (3,032) 
Finance costs                       -         -         -         -         - 
---------------------------  --------  --------  --------  --------  -------- 
Profit/(loss) before tax          594       133   (3,139)     (620)   (3,032) 
---------------------------  --------  --------  --------  --------  -------- 
 
Taxation                                                                    - 
---------------------------  --------  --------  --------  --------  -------- 
Loss after taxation                                                   (3,032) 
---------------------------  --------  --------  --------  --------  --------

Analysis of discontinued exceptional items and loss on disposal of discontinued operations

 
Year ended 31 October 2016        Astley  Europlas     Solar     Total 
                                GBP000's  GBP000's  GBP000's  GBP000's 
------------------------------  --------  --------  --------  -------- 
 
Restructuring costs                    -       474       417       891 
Impairment of goodwill                 -       299        56       355 
Other balance sheet items 
 no longer deemed recoverable          -       480       734     1,214 
------------------------------  --------  --------  --------  -------- 
Discontinued exceptional               -     1,253     1,207     2,460 
------------------------------  --------  --------  --------  -------- 
 
Loss on disposal of Astley       (1,740)         -         -   (1,740) 
------------------------------  --------  --------  --------  --------

Year ended 31 October 2015

Discontinued exceptional costs of GBP300,000 in the prior year related to restructuring in the Solar division.

Discontinued exceptional costs

Restructuring costs in relation to Europlas and Solar include people, property, and other costs associated with the exit of the business. The goodwill in relation to Europlas, GBP299,000, and KBC Energy Limited goodwill, GBP56,000, have been impaired in the year. KBC Energy Limited was the holding company with investments in a large number of the Group's Solar subsidiaries. See note 13.

The detailed review of the Group's subsidiary balance identified GBP1,214,000 of exceptional items relating to balances deemed no longer recoverable, (with GBP725,000 originating in 2015 and GBP114,000 originating in earlier years). These adjustments included a large number of relatively small items, principally prepayments and other receivables, which will have no impact on the future cash flows of the Group.

Loss on disposal of Astley

Astley was sold by the business on 28 October 2016 to Duality Group Ltd. The business was valued at GBP200,000. This price was based on the financial position of Astley as at 31 August 2016, (and future trading prospects and cost funding requirements), to be adjusted for subsequent net working capital adjustments before completion. These net working capital movements totalled an outflow of GBP200,000 to Entu, resulting in a net nominal disposal price of GBP1.

 
Year ended 31 October                                   2016 
                                                    GBP000's 
------------------------------------------------    -------- 
 
Purchase price                                           200 
Working capital adjustment                             (200) 
Cash inflow to the Group in respect of purchase            - 
 price 
Net assets disposed of, including impaired 
 intercompany balances                               (1,540) 
Professional fees associated with the disposal         (200) 
--------------------------------------------------  -------- 
Loss on disposal of Astley                           (1,740) 
--------------------------------------------------  --------

Statement of cash flows

 
Year ended 31 October                                            2016       2015 
                                                                        Restated 
                                                             GBP000's   GBP000's 
---------------------------------------------------------    --------  --------- 
 
The statement of cash flows includes the following 
 amounts relating to 
 discontinued operations: 
Net cash operating outflows from discontinued operations 
 (all operating cash flows)                                   (1,742)    (5,606) 
-----------------------------------------------------------  --------  ---------

The above operating cash flows include the cash impacts of restructuring activity in the year ended 31 October 2016 and the prior year ended 31 October 2015. In terms of investing and financing activities, the proceeds on sale of Astley, (excluding professional fees) in the year ended 31 October 2016 were GBP1 after adjustment for working capital movements. Similarly, the nominal purchase price for Astley in the year ended 31 October 2015 was GBP200,000, but after adjustments in respect of net assets, the final purchase price was GBP1.

Prior year acquisition of Astley (now included within discontinued operations)

Upon acquisition of Astley in the year ended 31 October 2015 the net impact of the cash inflow was GBP1,040,000.

11. Dividends

 
Year ended 31 October         2016      2015 
                          GBP000's  GBP000's 
----------------------    --------  -------- 
 
Dividends paid               2,079     2,736 
------------------------  --------  -------- 
 
 
                     GBP000's  Pence per 
                                   share 
-----------------    --------  --------- 
 
2016 Dividends 
Final dividend          1,750       2.67 
Interim dividend          329       0.50 
-------------------  --------  --------- 
                        2,079       3.17 
  -----------------  --------  --------- 
 
2015 Dividends 
Special dividend          984       1.50 
Interim dividend        1,752       2.67 
-------------------  --------  --------- 
                        2,736       4.17 
  -----------------  --------  ---------

In the light of the changes in the financial position of the Group, the Directors have concluded that no final dividend will be declared for the year.

The final dividend for the prior year ended 31 October 2015 of GBP1,750,000 was not recognised as a liability in the prior year Financial Statements but has been recognised in the movements for the year ended 31 October 2016 in the Consolidated Statement of Changes in Equity.

12. Earnings per share

Basic earnings per share and diluted earnings per share are calculated by dividing the loss or profit for the period attributable to equity holders by the weighted average number of shares in issue.

 
Year ended 31 October              2016        2015 
                                 Number      Number 
-------------------------    ----------  ---------- 
 
Basic weighted average       65,600,000  65,600,000 
---------------------------  ----------  ---------- 
 
Diluted weighted average     65,600,000  65,663,777 
---------------------------  ----------  ----------

The weighted average number of shares used to calculate earnings per share is consistent with the number of ordinary shares in issue as at the year end and this has been applied consistently for all years reported within these Financial Statements. As a result of the formation of the Group and the Company's capital structure the application of the closing number of ordinary shares has been deemed to give the most relevant and comparable calculation of earnings per share in the financial years reported.

Deferred shares have been excluded from the basic and diluted number of shares as deferred shares carry no voting right and no rights to any distributions to be made by the Group.

 
Year ended 31 October                     2016       2015 
                                                 Restated 
                                         Pence      Pence 
------------------------------------    ------  --------- 
 
Basic(loss)/ earnings per share          (8.6)        4.2 
Exceptional items                          7.0        0.7 
Discontinued operations                    5.8        4.6 
--------------------------------------  ------  --------- 
Adjusted basic earnings per share          4.2        9.5 
--------------------------------------  ------  --------- 
 
Adjusted diluted earnings per share        4.2        9.5 
--------------------------------------  ------  ---------

Adjustments to earnings per share

Adjusted basic and diluted earnings per share figures are calculated by dividing adjusted profit after tax for the year by the weighted average number of shares in issue (as above). The adjusted profit after tax for the year is as follows:

 
Year ended 31 October                           2016       2015 
                                                       Restated 
                                            GBP000's   GBP000's 
----------------------------------------    --------  --------- 
 
(Loss)/profit attributable to owners of 
 the Parent Company                          (5,622)      2,714 
Exceptional items                              4,581        518 
Discontinued operations                        3,801      3,032 
------------------------------------------  --------  --------- 
Adjusted profit after tax                      2,760      6,264 
------------------------------------------  --------  --------- 
 
 
Year ended 31 October                           2016       2015 
                                                       Restated 
                                               Pence      Pence 
-------------------------------------------    -----  --------- 
 
Basic earnings per share: 
Continuing operations (loss)/ earnings per 
 share                                         (2.8)        8.8 
Discontinued operations loss per share         (5.8)      (4.6) 
---------------------------------------------  -----  --------- 
Total basic(loss)/earnings per share           (8.6)        4.2 
---------------------------------------------  -----  ---------

Diluted earnings per share

 
Year ended 31 October        2016       2015 
                                    Restated 
                            Pence      Pence 
------------------------    -----  --------- 
 
Continuing operations       (2.8)        8.8 
--------------------------  -----  --------- 
 
Discontinued operations     (5.8)      (4.6) 
--------------------------  -----  ---------

There is no material difference between diluted earnings per share and basic earnings per share for continuing and discontinued operations.

13. Intangible assets

 
At 31 October                                 Goodwill 
                                              GBP000's 
-----------------------------------------     -------- 
 
Cost 
At 1 November 2014                               1,749 
Disposal of a subsidiary                         (180) 
--------------------------------------------  -------- 
At 31 October 2015 and 31 October 2016           1,569 
--------------------------------------------  -------- 
 
Accumulated impairment losses 
At 1 November 2014 and 1 November 2015            (73) 
Impairment charge during the year ended 
 31 October 2016                                 (355) 
--------------------------------------------  -------- 
At 31 October 2016                               (428) 
--------------------------------------------  -------- 
 
Carrying value of goodwill at 31 October 
 2016                                            1,141 
--------------------------------------------  -------- 
 
Carrying value of goodwill at 31 October 
 2015                                            1,496 
--------------------------------------------  -------- 
 
Carrying value of goodwill at 31 October 
 2014                                            1,676 
--------------------------------------------  --------

Goodwill has arisen as follows:

-- the purchase of 100% of the share capital of Weatherseal Holdings Limited whose trade is now held within Weatherseal Home Improvements Limited;

   --      the acquisition of the trade and assets held within Zenith Staybrite Limited;

-- the acquisition of the trade and assets of a business which now sits in Penicuik Home Improvements Limited;

-- the acquisition of 100% of the share capital of Soltrac Limited, Energy Hypermarket Limited and The Essex Solar Company Limited (this was reflected on a consolidated basis in KBC goodwill which has been impaired during the year ended 31 October 2016); and

-- the acquisition of the trade and assets of trade of Europlas, a division of Specialist Building Products Limited, which has now been impaired in the year ended 31 October 2016.

Impairment testing of goodwill

The allocation of the carrying value of goodwill after impairment to Cash-Generating Units (CGU) is as follows:

 
At 31 October                              2016      2015 
                                       GBP000's  GBP000's 
-----------------------------------    --------  -------- 
 
Weatherseal Holdings Limited                876       876 
Zenith Staybrite Limited                    200       200 
Penicuik Home Improvements Limited           65        65 
KBC Energy Limited Group                      -        56 
Europlas Limited                              -       299 
-------------------------------------  --------  -------- 
Total                                     1,141     1,496 
-------------------------------------  --------  --------

The recoverable amount of a CGU is determined based on 'value-in-use' calculations. These calculations use pre-tax cash flow projections based on financial budgets, covering three years that are approved by the Board. Income and costs within the budgets are derived on a detailed, 'bottom up' basis. All income streams and cost lines are considered and appropriate growth or decline, rates are assumed for each based on historical experience, all of which are then reviewed and challenged, firstly by senior management and ultimately by the Board. Income and cost growth forecasts are risk adjusted to reflect the specific risks facing each CGU and take account of the markets in which they operate. Cash flows beyond the budgeted period are extrapolated using the estimated growth rate stated below. The growth rate does not exceed the long-term average growth rate for the markets in which the CGUs operate. Furthermore, it is assumed that there are no material adverse changes in legislation that would affect the forecast cash flows. The key assumptions used in the 'value-in-use' calculations for each CGU are as follows:

 
 Long term growth 
  rate                  2.00% 
 Market risk premium    5.75%

The pre-tax discount rate used within the recoverable amount calculations was 10.0% (2015: 10.0%) and is based upon the weighted average cost of capital reflecting the specific principal risks and uncertainties applicable to each CGU. The discount rate takes into account, amongst other things, the risk-free rate of return, the cost of equity and the market risk premium, which is used in deriving the cost of equity. The same discount rate has been used for each CGU as the principal risks and uncertainties associated with the Group, as highlighted earlier in this report as being those risks with the highest likelihood or impact, would also impact each CGU in a similar manner. The Board acknowledge that there are additional factors that could impact the risk profile of each CGU given the difference in operations, customer base and trading performance over recent years. These additional factors were considered by way of a sensitivity analysis performed as part of the annual impairment tests. A sensitivity analysis has been performed around the base assumptions with the conclusion that no reasonable possible changes in key assumptions would cause the recoverable amount of the goodwill assets to be less than the carrying value.

The Directors consider past experience and use forecasts when assessing the likely future cash flows of the cash generating units. Having completed the 2016 annual impairment review, the Group has recognised an impairment charge of GBP299,000 in respect of Europlas goodwill and GBP56,000 in respect of KBC goodwill. These impairment charges were taken in the year, because the goodwill originally arose on businesses which have now been discontinued, (see note 10).

14. Property, plant and equipment

 
                                 Freehold            Plant        Fixtures       Motor            Equipment      Total 
                                 property    and machinery    and fittings    vehicles 
                                 GBP000's         GBP000's        GBP000's    GBP000's             GBP000's   GBP000's 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  --------- 
 
 Cost 
 At 1 November 
  2014                                294              170             969         382                  710      2,525 
 Additions                              -               17              88           -                  153        258 
 Acquisition                            -               17               -           -                    -         17 
 Disposals                              -                -            (76)           -                  (4)       (80) 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  --------- 
 At 31 October 
  2015                                294              204             981         382                  859      2,720 
 Additions                              -                -             104           -                   85        189 
 Disposals                          (294)                -               -           -                    -      (294) 
 Disposals in 
  Astley business                       -             (35)               -           -                    -       (35) 
 Write downs                            -                -            (54)           -                    -       (54) 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  --------- 
 At 31 October 
  2016                                  -              169           1,031         382                  944      2,526 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  --------- 
 
 Accumulated 
 depreciation 
 At 1 November 
  2014                                 31              153             667          73                  553      1,477 
 Charge for the 
  year                                 13               13             160          64                  102        352 
 Disposals                              -                -            (54)           -                  (3)       (57) 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  --------- 
 At 31 October 
  2015                                 44              166             773         137                  652      1,772 
 Charge for the 
  year                                  -               18              63          66                  103        250 
 Disposals                           (44)                -               -           -                    -       (44) 
 Disposal of 
  Astley 
  business                              -             (15)               -           -                    -       (15) 
 Write downs                            -                -              52           -                   30         82 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  --------- 
 At 31 October 
  2016                                  -              169             888         203                  785      2,045 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  --------- 
 
 Net book value: 
 At 31 October 
  2016                                  -                -             143         179                  159        481 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  --------- 
 
 At 31 October 
  2015                                250               38             208         245                  207        948 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  --------- 
 
 At 1 November 
  2014                                263               17             302         309                  157      1,048 
-----------------  ----------------------  ---------------  --------------  ----------  -------------------  ---------

As at 31 October 2016, the Group had not entered into any commitments for the acquisition of property, plant and equipment. During the year, the freehold property was sold to a related party at market value. See note 27 on related party transactions.

15. Inventories

 
At 31 October                               2016      2015 
                                        GBP000's  GBP000's 
------------------------------------    --------  -------- 
 
Raw materials and consumables                932       789 
Finished goods and goods for resale          335     1,050 
--------------------------------------  --------  -------- 
                                           1,267     1,839 
  ------------------------------------  --------  --------

During the year GBP55,000 (2015: GBPnil) was charged to operating profit and a further GBP482,000 (2015:GBPnil) within exceptional items in the income statement for the write down of inventories.The cost of inventories recognised as an expense and included in cost of sales amounts to GBP23,737,000 (2015: GBP29,173,000).

16. Trade and other receivables

 
At 31 October                                         2016       2015 
                                                             Restated 
                                                  GBP000's   GBP000's 
----------------------------------------------    --------  --------- 
 
Trade receivables                                    5,498      5,361 
Provision for impairment of trade receivables      (1,424)      (861) 
------------------------------------------------  --------  --------- 
Net trade receivables                                4,074      4,500 
Other receivables                                      675      4,724 
Prepayments and accrued income                       3,354      4,865 
------------------------------------------------  --------  --------- 
                                                     8,103     14,089 
  ----------------------------------------------  --------  ---------

The fair value of trade and other receivables has been considered to be consistent with the book value given their short term nature.

Movements in the Group provision for impairment of trade receivables are as follows:

 
                                                2016      2015 
                                            GBP000's  GBP000's 
----------------------------------------    --------  -------- 
 
At 1 November                                  (861)     (725) 
Provision for receivables                      (779)     (708) 
Receivables written off during the year          216       572 
------------------------------------------  --------  -------- 
At 31 October                                (1,424)     (861) 
------------------------------------------  --------  --------

Provisions are estimated by management based on past default experience and their assessment of the current economic environment. The creation and release of provisions for receivables is charged/(credited) to administrative expenses in the statement of comprehensive income. The credit risk of customers is assessed at a subsidiary and Group level, taking into account their financial positions, past experiences and other relevant factors. Individual customer credit limits are imposed based on these factors.

No other receivables have been deemed to be impaired. The following table shows trade receivables at the reporting date including those that are overdue (over 31 days) and for which no allowance for impairment has been recognised.

Debt over 31 days (after provisions)

 
At 31 October         2016      2015 
                  GBP000's  GBP000's 
--------------    --------  -------- 
 
31- 60 days            840       421 
61-90 days             671       168 
91 + days              226       589 
----------------  --------  -------- 
                     1,737     1,178 
  --------------  --------  --------

Provisioning is based on debt over 31 days, with the bulk of the provision being applied to debt over 90 days.

17. Cash and cash equivalents

 
At 31 October                     2016      2015 
                              GBP000's  GBP000's 
--------------------------    --------  -------- 
 
Cash at bank and in hand           768     1,435 
----------------------------  --------  -------- 
Cash and cash equivalents          768     1,435 
----------------------------  --------  --------

The Group's banking facility is operated and managed as an integrated facility both internally and externally. Although individual bank accounts may have positive or negative cash balances, the interest calculated is on the net position of the banking balances within the Group facility. The cash at bank and in hand position shown in the above table represent the net position of the Group. Bank overdrafts have been offset against cash at bank and in hand as the Group has an enforceable right to offset positive and negative individual bank account positions and receives or pays interest on the net cash position of the Group. As at 31 October 2016 bank overdrafts offset against cash at bank and in hand totalled GBP3,066,000, (2015: GBP904,000).

18. Trade and other payables

 
At 31 October                                2016      2015 
                                         GBP000's  GBP000's 
-------------------------------------    --------  -------- 
 
Trade payables                              7,539     8,731 
Payments on account                           870     1,303 
Other taxation and social security          1,875     1,781 
Accruals                                    1,937     3,205 
Deferred income and advance payments        6,244     2,457 
---------------------------------------  --------  -------- 
                                           18,465    17,477 
  -------------------------------------  --------  --------

19. Deferred tax

Deferred tax liability

 
                         Accelerated     Total 
                                 tax 
                        depreciation 
                            GBP000's  GBP000's 
-------------------    -------------  -------- 
 
At 31 October 2015              (60)      (60) 
Credit to income                  22        22 
---------------------  -------------  -------- 
At 31 October 2016              (38)      (38) 
---------------------  -------------  --------

Deferred tax asset

 
                          Losses  Provisions     Total 
                        GBP000's    GBP000's  GBP000's 
---------------------   --------  ----------  -------- 
 
At 31 October 2015             -           -         - 
Movement in the year         437          19       456 
----------------------  --------  ----------  -------- 
At 31 October 2016           437          19       456 
----------------------  --------  ----------  --------

For the year ended 31 October 2016, certain deferred tax assets and liabilities have been offset in accordance with IAS 12 'Income taxes'. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

 
At 31 October                               2016      2015 
                                        GBP000's  GBP000's 
------------------------------------    --------  -------- 
 
Deferred tax assets                          456         - 
Deferred tax liabilities                    (38)      (60) 
--------------------------------------  --------  -------- 
Net deferred tax asset /(liability)          418      (60) 
--------------------------------------  --------  --------

There are no amounts on which a deferred tax asset is not recognised.

The net deferred tax asset of GBP418,000 (31 October 2015: GBPnil) is expected to be recovered within one year.

20. Provisions

The analysis between provisions included in liabilities within one year, and provisions included in liabilities over one year is provided below:

 
At 31 October                                    2016      2015 
                                             GBP000's  GBP000's 
-----------------------------------------    --------  -------- 
 
Onerous lease and dilapidations                 1,189         - 
Legal and commercial (including relating 
 to discontinued operations)                      570         - 
Finance clawback                                  105       105 
Warranty and contractual clauses                  101     2,238 
-------------------------------------------  --------  -------- 
                                                1,965     2,343 
  -----------------------------------------  --------  -------- 
 
Current                                         1,562     1,025 
Non-current                                       403     1,318 
-------------------------------------------  --------  -------- 
                                                1,965     2,343 
  -----------------------------------------  --------  --------

Onerous lease and dilapidations

Provision has been made for onerous lease obligations (properties which the Group is planning to exit prior to the lease expiry date) and has also provided for dilapidation costs where appropriate on leased properties.

Legal and commercial

Provision has been made for certain legal and commercial matters (including those relating to discontinued operations) where a liability is considered to exist, but where the final amount and the timing of any payment in this respect is uncertain.

Finance clawback

Subsidiaries of the Group offer a financing agreement to customers on the purchase of products. Such financing is provided by third parties from whom the Group receives a commission. In certain circumstances this may be clawed back within the first six months of the agreement, and therefore a provision is made based on historic clawback trends.

Warranty and contractual clauses

The Home Installations business historically manufactured products and as a result a suitable warranty provision was maintained. In addition, Astley carried warranty provisions arising from its various contractual issues. The Group has ceased to manufacture its own products and Astley has been sold, resulting in a significant reduction in the level of warranty provisions required.

 
                                           Onerous    Legal and    Finance      Warranty   Total 
                                         lease and   commercial   clawback           and 
                                     dilapidations                           contractual 
                                                                                 clauses 
                                          GBP000's     GBP000's   GBP000's      GBP000's  GBP000's 
----------------------------------  --------------  -----------  ---------  ------------  -------- 
 
Cost 
At 1 November 2014                               -            -        107         1,810     1,917 
Additional provisions                            -            -        105            22       127 
Acquisition                                      -            -          -         1,270     1,270 
Utilised in the year                             -            -          -          (19)      (19) 
Released in the year                             -            -      (107)         (845)     (952) 
----------------------------------  --------------  -----------  ---------  ------------  -------- 
At 31 October 2015                               -            -        105         2,238     2,343 
Additional provisions                        1,189          570        105             -     1,864 
Utilised in the year                             -            -      (105)             -     (105) 
Released in the year continuing                  -            -          -         (867)     (867) 
Released in the year discontinued                -            -          -         (500)     (500) 
Disposals                                        -            -          -         (770)     (770) 
----------------------------------  --------------  -----------  ---------  ------------  -------- 
At 31 October 2016                           1,189          570        105           101     1,965

----------------------------------  --------------  -----------  ---------  ------------  --------

The discontinued Astley business released GBP500,000 after closing out risks on a major project in the six months to 31 October 2016. The disposals adjustment of GBP770,000 in the provisions movement disclosed above is also in respect of Astley, which has now been sold.

21. Retirement benefits

The Group operates a defined contribution pension scheme. The assets of the scheme are administered by trustees in funds independent from those of the Company.

The total contributions paid in the year amounted to GBP385,000 (2015: GBP290,000) and at the balance sheet date pension contributions of GBP26,000 (2015: GBPnil) were outstanding.

22. Share capital

 
At 31 October                             2016      2016            2015      2015 
                                Number (000's)  GBP000's  Number (000's)  GBP000's 
------------------------------  --------------  --------  --------------  -------- 
 
Authorised: 
Ordinary shares of GBP0.0005 
 each                                   65,600        33          65,600        33 
Deferred shares of GBP0.0005 
 each                                   34,400        17          34,400        17 
------------------------------  --------------  --------  --------------  -------- 
                                       100,000        50         100,000        50 
------------------------------  --------------  --------  --------------  -------- 
 
Issued and fully paid: 
Ordinary shares of GBP0.0005 
 each                                   65,600        33          65,600        33 
Deferred shares of GBP0.0005 
 each                                   34,400        17          34,400        17 
------------------------------  --------------  --------  --------------  -------- 
Total called up share capital          100,000        50         100,000        50 
------------------------------  --------------  --------  --------------  --------

The Company was incorporated on 25 March 2014 at which time 100 ordinary shares of GBP0.01 were issued to the shareholders of the Company which were settled in full in cash.

On 7 July 2014, the Company issued a further 10,020 GBP0.01 ordinary shares. Consideration for the issue of these shares was in the form of the issued share capital of JWD Installations Limited, HI Sales Limited and KBC Energy Limited, which were entities controlled by common shareholders.

On 8 October 2014, a further 4,989,880 GBP0.01 ordinary shares were issued by the Company which were settled in full in cash.

On 8 October 2014, the Company's issued share capital of 5,000,000 GBP0.01 ordinary shares were subdivided into 100,000,000 GBP0.0005 ordinary shares.

On 8 October 2014 30,000,000 GBP0.0005 ordinary shares issued by the Company were converted into deferred shares in the Company.

On 8 October 2014 4,400,000 GBP0.0005 ordinary shares issued by the Company were converted into deferred shares in the Company.

Ordinary shares give holders the right to vote and participate in general meetings of the Group as well as the rights over distributions and the assets of the Group. All ordinary shareholders rank pari-passu.

Deferred share carry no voting rights and no rights to distributions and the assets of the Group.

23. Accumulated losses

Accumulated losses reserves are analysed in the Consolidated Statement of Changes in Equity and prior year reserves have been restated. See note 2 for details of and the reasons for the restatement.

24. Reconciliation of (loss)/profit before tax to cash generated from operations

 
Year ended 31 October                                      2016       2015 
                                                                  Restated 
                                                       GBP000's   GBP000's 
---------------------------------------------------    --------  --------- 
 
(Loss)/profit before tax including discontinued 
 operations                                             (6,529)      3,687 
Finance income                                                -        (4) 
Finance costs                                               232         27 
Depreciation of property, plant and equipment               250        352 
Profit on disposal of property                            (213)          - 
Goodwill impairment charge                                  355          - 
Other non-cash movements including write 
 downs of fixed assets                                       28          - 
Loss on disposal of Norwood kitchen operation                 -        156 
Loss on disposal of Astley group of companies             1,740          - 
Share based payment charge                                    -         30 
Increase/(decrease) in provisions                           392      (844) 
-----------------------------------------------------  --------  --------- 
Operating cash flows before movements in 
 working capital                                        (3,745)      3,404 
Movements in working capital: 
Decrease/(increase) in inventories                          469       (34) 
Decrease/(increase) in trade and other receivables        1,767    (1,833) 
Increase/(decrease) in trade and other payables           2,891      (357) 
-----------------------------------------------------  --------  --------- 
Cash generated from operations                            1,382      1,180 
-----------------------------------------------------  --------  ---------

The impact of the disposal of Astley Facades group of companies is adjusted in the movements in working capital in the above note.

The profit on sale of freehold property of GBP213,000 relates to sales proceeds of GBP463,000 less net book value of GBP250,000 eliminated on disposal.

25. Operating lease commitments

 
Year ended 31 October                                    2016      2015 
                                                     GBP000's  GBP000's 
-------------------------------------------------    --------  -------- 
 
Lease payments under operating leases recognised 
 as an expense in the year                              1,578     2,350 
---------------------------------------------------  --------  --------

At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

 
At 31 October                                  2016      2015 
                                           GBP000's  GBP000's 
---------------------------------------    --------  -------- 
 
Within one year                                 261     1,897 
In the second to fifth years inclusive        2,661     4,198 
Over five years                               2,031       902 
-----------------------------------------  --------  -------- 
                                              4,953     6,997 
  ---------------------------------------  --------  --------

26. Share based payment incentive schemes

All schemes are subject to a three-year vesting period and are designed to align employee interests with shareholder interests.

 
At 31 October 2016                                   CSOP       SAYE 
 
Number of options granted                         270,000    500,000 
Share price at date of grant (per share)      100p - 110p       100p 
Exercise price (per share)                           100p        80p 
Vesting period                                    3 years    3 years 
Option life                                      10 years  3.5 years 
Expected life                                     3 years    3 years 
Volatility                                         33.88%     33.77% 
Dividend yield                                         6%       5.6% 
Risk free rate                                      1.04%      1.07% 
Expected leaver rate                                  25%        25% 
Fair value of options granted                14.76p-20.1p      26.1p

A reconciliation of option movements is set out in the table below:

 
                                          CSOP        SAYE 
                                        Number      Number 
-------------------------------    -----------  ---------- 
 
Outstanding at 1 November 2015         240,000     433,625 
Granted                                      -           - 
Forfeited / cancelled                 (60,000)   (202,775) 
Lapsed                                       -     (1,350) 
Outstanding at 31 October 2016         180,000     229,500 
---------------------------------  -----------  ----------

As at 31 October 2016 there were no CSOP or SAYE options that were exercisable at the end of the year (2015: None).The Group has recognised a charge of GBPnil (2015: GBP30,000) in respect of the CSOP and SAYE schemes in the year.

LTIP and MIP schemes

The number of options issued under the LTIP and MIP schemes was 960,000 and 4,448,399 respectively. There is currently no expectation that any options will vest under these schemes and no charges has been recognised in these Financial Statements.

27. Related party transactions

Sale of freehold property

At the end of October 2016, a freehold property was sold to the Chief Executive Officer. The sale price of GBP463,000, and the future rental charge, were determined by independent valuers on an arm's length basis and were approved by the Non-Executive Directors in advance of the transaction. The Group generated a profit of GBP213,000 as a result of this transaction.

There were no balances outstanding as at 31 October 2016 in relation to this transaction. The purchase price was paid in full prior to the year-end date.

Key management personnel

After resignation as a director, Darren Cornwall provided some consultancy work for the Group. In addition to the emoluments of GBP79,000 included within note 7, former Director, Darren Cornwall received GBP53,000 in pay for the year ended 31 October 2016, (2015: GBPnil), in the period post his resignation from the Board of Directors on 15 April 2016, to 31 October 2016. The payments made were on an arm's length basis.

There are no other personnel which the Group defines as key management personnel, other than the Board of Directors.

28. Subsidiaries

Details of the Company's subsidiaries at 31 October 2016 are as follows:

 
Company                             Operation                   Country of       Parent Company's  Proportion 
                                                                 incorporation           interest   of voting 
                                                                                                     interest 
----------------------------------  --------------------------  ---------------  ----------------  ---------- 
 
Entu (UK) Holdings Limited          Holding Company             United Kingdom              *100%       *100% 
HI Sales Limited                    Holding Company             United Kingdom              *100%       *100% 
Weatherseal Home Improvements 
 Limited                            Retail                      United Kingdom               100%        100% 
Penicuik Home Improvements 
 Limited                            Retail/Marketing            United Kingdom               100%        100% 
Zenith Staybrite Limited            Manufacturing/Retail        United Kingdom               100%        100% 
Home Install Limited                Retail/Marketing            United Kingdom               100%        100% 
Europlas Limited                    Retail                      United Kingdom               100%        100% 
KBC Energy Limited                  Holding Company (Dormant)   United Kingdom              *100%       *100% 
Soltrac Limited                     Retail                      United Kingdom               100%        100% 
Energy Hypermarket Limited          Retail                      United Kingdom               100%        100% 
                                    Retail/Services to 
Job Worth Doing Limited              Group                      United Kingdom               100%        100% 
Window Care Limited                 Retail                      United Kingdom               100%        100% 
Zenith Windows Limited              Dormant                     United Kingdom               100%        100% 
Staybrite Windows Limited           Dormant                     United Kingdom               100%        100% 
Entu Home Energy Services Limited   Retail/Holding Company      United Kingdom               100%        100% 
JWD Installations Limited           Holding Company             United Kingdom               100%        100% 
Quotes Near Me Limited              Dormant                     United Kingdom               100%        100% 
St Andrews Home Improvements 
 Limited                            Retail                      United Kingdom               100%        100% 
Entu Services Limited               Dormant                     United Kingdom               100%        100%

* Shares held by the Company

Shares held by a subsidiary

All holdings represent ordinary share capital.

All subsidiary entities have a year end of 31 October except for JWD Installations Limited and Quotes Near Me Limited, which are not trading companies.

No subsidiaries of the Group other than dormant entities have taken the exemption from audit under Section 479A of CA 2006.

29. Ultimate controlling party

The Directors consider there to be no ultimate controlling party of the Group.

30. Events after the end of the reporting period.

During March 2017, the Group extended it facilities with Barclays Bank plc, with the renewal of its GBP4m revolving credit facility for 12 months alongside the Group's existing variable overdraft facility. The Directors have no reason to believe that the facilities will not be renewed upon expiry. The terms include a renewal of the existing cross guarantee and debenture security across the Entu (UK) plc group of companies.

31. Reconciliation of results to non-statutory measures

A reconciliation of reported profit to underlying profit:

 
Year ended                         Home    Energy Generation     Repair and Renewal               Total 
 31 October 2016           Improvements          and Savings     Service Agreements 
                        Gross    EBITDA      Gross    EBITDA       Gross     EBITDA     Gross    EBITDA 
                       profit               profit                profit               profit 
                     GBP'000s  GBP'000s   GBP'000s  GBP'000s    GBP'000s   GBP'000s  GBP'000s  GBP'000s 
-------------------  --------  --------  ---------  --------  ----------  ---------  --------  -------- 
 
Reported profit        23,727       414      1,498        54       2,236      2,236    27,461     2,704 
 
Recurring central 
 overheads charged 
 to discontinued 
 operations (i)             -     (350)          -         -           -          -         -     (350) 
                                                 -         - 
-------------------  --------  --------  ---------  --------  ----------  ---------  --------  -------- 
Underlying profit      23,727        64      1,498        54       2,236      2,236    27,461     2,354 
-------------------  --------  --------  ---------  --------  ----------  ---------  --------  -------- 
 
 
Year ended                         Home    Energy Generation     Repair and Renewal               Total 
 31 October 2015           Improvements          and Savings     Service Agreements 
                        Gross    EBITDA      Gross    EBITDA       Gross     EBITDA     Gross    EBITDA 
                       profit               profit                profit               profit 
                     GBP'000s  GBP'000s   GBP'000s  GBP'000s    GBP'000s   GBP'000s  GBP'000s  GBP'000s 
-------------------  --------  --------  ---------  --------  ----------  ---------  --------  -------- 
 
Reported profit        26,238     4,612      1,619       936       2,061      2,061    29,918     7,609 
 
Recurring central 
 overheads charged 
 to discontinued 
 operations (ii)            -   (2,904)          -     (676)           -          -         -   (3,580) 
 
Exceptional 
 items 
 originating 
 in 2015 (iii)        (1,217)   (1,217)      (435)     (435)           -          -   (1,652)   (1,652) 
                                                 -         - 
-------------------  --------  --------  ---------  --------  ----------  ---------  --------  -------- 
Underlying profit      25,021       491      1,184     (175)       2,061      2,061    28,266     2,377 
-------------------  --------  --------  ---------  --------  ----------  ---------  --------  --------

(i) In the year ended 31 October 2016, the recurring central overheads charged to discontinued operations related to Astley and Europlas.

(ii) In the year ended 31 October 2015, the recurring central overheads charged to discontinued operations related to Solar and Norwood.

(iii) See note 5.

This information is provided by RNS

The company news service from the London Stock Exchange

END

FR BUGDXCUDBGRI

(END) Dow Jones Newswires

March 29, 2017 02:00 ET (06:00 GMT)

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ENTU Entu (UK)