We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Inspiration Healthcare Group Plc | LSE:IHC | London | Ordinary Share | GB00BXDZL105 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.25 | 1.58% | 16.10 | 15.70 | 16.50 | 16.10 | 15.85 | 15.85 | 805,098 | 14:11:48 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Home Health Care Services | 41.23M | 272k | 0.0040 | 40.25 | 10.98M |
From May 2019 to May 2024
TIDMIHC
RNS Number : 9695D
Inspiration Healthcare Group PLC
03 May 2017
Inspiration Healthcare Group plc
Inspiration Healthcare Group plc ("Inspiration Healthcare", the "Company" or the "Group")
Preliminary Results for the year ended 31 January 2017
Inspiration Healthcare Group plc (AIM: IHC), the global medical device company, today announces its preliminary results for the twelve months ended 31 January 2017.
Highlights:
-- Revenue increased by 9.4 % to GBP14.3 million -- International revenue up by 9.9% -- Domestic revenue increased by 9.1% -- R&D spend up to 4.4% of revenue -- Inditherm product manufacturing outsourced -- Rotherham factory closed -- New corporate head office opened in Crawley
Commenting on the results, Neil Campbell, Chief Executive Officer of Inspiration Healthcare Group plc, said:
"Our growth in the year ending January 2017 is extremely pleasing, and in line with expectations, maintaining the momentum of the private company as we transitioned fully into a public traded company. To have achieved this at the same time as restructuring the company is a credit to the whole team. We have prioritised our product development and will continue to invest in our infrastructure, staff and management systems to grow our business and realise its full potential."
Enquiries:
Inspiration Healthcare Tel: 01455 840555 Group plc Neil Campbell, Chief Executive Officer Mike Briant, Chief Financial Officer ------------------------------ ------------------- Nominated Adviser & Broker Tel: 0207 397 8900 Cenkos Securities plc Bobbie Hilliam (NOMAD) ------------------------------ ------------------- Cadogan PR Tel: 07771 713608 Alex Walters ------------------------------ -------------------
About Inspiration Healthcare
Inspiration Healthcare (AIM: IHC) is a global supplier of medical technology for critical care, operating theatre and home healthcare. The Company provides high quality innovative products to patients and caregivers around the world that help to improve patient outcomes and efficiencies of healthcare organisations with patient focused customer service and technical support.
The Company's own brand of critical care solutions span non-invasive respiratory management, thermoregulation and diagnostics, and patient warming for newborns through to adults in intensive care and the operating theatre, whilst the distribution business supplies solutions to support specialised surgical procedures and infusion therapies.
Present in over 50 countries worldwide, Inspiration Healthcare's success has been built on continuous innovation, excellent customer service and an inherent commitment to improving the quality of life of patients, working in close collaboration with key opinion leaders and stakeholders in the clinical and medical community across the globe.
Chairman's Report
A year ago I introduced the first annual report of a newly merged Group, Inspiration Healthcare Group plc. This year I am delighted to report on the excellent progress that has been made across the Group in its first full year of trading.
The Group's revenue increased to GBP14.3 million for the year ended 31 January 2017 ("2017") (2016: GBP13.1 million), a rise of 9.4% over last year. The increase is measured against the 2016 revenue shown in the unaudited Proforma Consolidated Income Statement set out overleaf (and included in last year's annual report) as it is used for comparison by the Board, representing 12 months of trading of both Inspiration Healthcare Limited and Inditherm plc for 2016.
As a result of the reverse acquisition of Inditherm plc by Inspiration Healthcare Limited, the statutory basis for reporting results for the year ended 31 January 2016 ("2016") showed revenue of GBP12.3 million and thus reported revenue growth for 2017 is 16.7%.
Compared to the statutory results for 2016, the unaudited Proforma Consolidated Income Statement set out overleaf, includes an additional 20 weeks of Inditherm plc's results prior to the reverse acquisition which has the impact on 2016 of increasing revenue by GBP0.8 million and reducing the operating profit before impairment charges and exceptional items by GBP0.2 million.
Hot Features
Premium
Proforma Consolidated Income Statement
(unaudited)
Actual Proforma
2017 2016
GBP'000 GBP'000
Revenue 14,323 13,096
Cost of sales (7,965) (7,118)
Gross profit 6,358 5,978
Operating expenses (5,913) (6,553)
Other income - 295
Operating profit/(loss) 445 (280)
Analysed as:
Operating profit before
impairment of goodwill and
intangible
Assets arising on acquisition
and exceptional items 1,163 1,109
Impairment of goodwill and
intangible assets - (517)
Exceptional items (718) (872)
Operating profit/(loss) 445 (280)
----------------------------------------- --------------------- -------------
Net Finance (Expense) /
Income (1) 3
Profit/(loss) on ordinary
activities before 444 (276)
Income tax expense (132) (136)
Profit/(loss) for the year attributable
to owners of the parent company 312 (412)
Earnings per share before
impairment of goodwill and
intangible assets arising
on acquisition and exceptional
items, attributable to the
owners of the parent company
during the period - basic
and diluted 3.4 3.4
----------------------------------------- --------------------- -------------
Adjusted earnings per share is included as, in the opinion of the Directors, this will allow shareholders to gain a clearer understanding of the trading performance of the Group for the period.
It is pleasing that good sales growth was achieved both Domestically (UK and Ireland) and Internationally, at 9.1% and 9.9%, respectively (on a proforma basis). Sales continue to do well in the USA with our Tecotherm product and our Inspire nCPAP range continues to grow around the world using our distribution partners and strategic alliances.
The main fall-out from Brexit was the volatility of exchange rates which has impacted our cost of goods, particularly of distributed products. However, we have been able to take some actions to partly mitigate the impact: including selective price increases, renegotiating purchase prices as well as benefiting from currency movements on international sales. The net result for the Group has been a slight decline in gross margin.
Our 2017 Operating Profit (before exceptional items) at GBP1.2m was in line with expectations and reflects an increase on the 2016 Proforma Operating Income of 5%.
The first full year results as a combined entity reflect a continuation of the sales momentum from the privately held company and we expect this to continue throughout next year, albeit we face headwinds in our growth programme as a tougher regulatory environment will slow new product introductions.
Regulatory standards for Medical Device companies have continued to become more stringent over recent years. Patient safety is paramount and underpins everything we do. The exhaustive testing for verification and validation of innovative new products is necessary to ensure the safety of our products. The Group will be making further investments in Regulatory Affairs and R&D resources to increase our capacity to meet the heightened regulatory requirements and minimise any impact on speed to market of new products.
During the year, we were delighted to attract some significant new shareholders to the business, following a secondary placement by the founder shareholders. The founder Director shareholders still retain 28% of the shares.
It was a sad moment when we closed the manufacturing facility in South Yorkshire and it is a testament to the staff that were affected, who remained loyal and professional throughout the process. On behalf of the Board I would like to thank them for this and wish them well for the future. We remain convinced that this was an important and correct decision and we will benefit from outsourced manufacturing giving greater flexibility in the future.
Employees
We are delighted to report that we are a Living Wage employer, accredited by the Living Wage Foundation. The Living Wage Foundation recognises employers that pay all employees at or above an hourly rate calculated based on the cost of living in the UK.
We are committed to attracting, retaining, engaging and developing the best people. We know that creating and sustaining an inclusive work environment is critically important, offering equal opportunity from the Boardroom down regardless of race, gender, gender identity or reassignment, age, disability, religion or sexual orientation.
We have continued our policy of retaining our loyal staff through the short-term peaks and troughs of demand. We acknowledge the hard work and endeavour from our staff and on behalf of the Board, I thank them most sincerely for their continued support.
Looking forward
This year, we believe we will benefit from the marketing groundwork on our products focused around birth and the first few moments of life, along with new products in development that should reach the market.
We intend to strengthen our internal resources and invest in our systems and processes to keep pace with the greater regulatory requirements referred to above in order to enhance our platform for future growth. Accordingly, we expect some additional expenses going forward and that some sales will move from the first half to the second half.
The impact of Brexit and the value of sterling still presents some challenges to a company of our size that both imports and exports goods. Our cash reserves and cash collection remain strong and we believe that we are well positioned for the year ahead.
Our expectations for underlying full year growth remain robust and unchanged albeit new product growth will inevitably be slowed as explained above. Notwithstanding the additional revenue investment, we plan to maintain our returns on a growing revenue line.
Mark Abrahams
Chairman
3 May 2017
Operating and Financial Review*
Our revenue grew by 9.4% during the year ended 31 January 2017 ("2017") with good growth being achieved both domestically and internationally.
Operating profit before impairment charges and exceptional items was GBP1.2 million (2016: GBP1.1 million on a proforma basis) and in line with expectations. Underlying operating margin for 2017 was 8.1% (2016: 8.5%). Profit after tax was GBP0.3 million, up GBP0.7 million on 2016. Adjusted EPS** was constant at 3.4p per share.
On a statutory basis reported operating profit was GBP0.4 million for the year (2016: GBP0.1 million) with operating profit before exceptional items of GBP1.2 million (2016: before impairment charges and exceptional items, GBP1.3 million). Profit after tax increased by GBP0.3 million from 2016. Adjusted EPS** declined from 4.1p to 3.4p as the statutory results for 2016 do not include a full year of trading losses of Inditherm plc.
Revenue
From a revenue perspective, the overall performance of the Group was in line with expectations at GBP14.3 million (2016: GBP13.1 million), an increase of 9.4%. Domestic revenue growth was 9.1% and international revenue grew by 9.9%. On a statutory basis 2016 revenue was GBP12.3 million.
Critical Care
(GBP10.0 million, +11% year on year)
Our Critical Care business grew strongly with domestic sales up 10.4% and international sales up 13.0%. The re- organisation of the UK salesforce in 2016 to create a dedicated team including a full time Critical Care sales manager has reaped benefits and underpinned the sales growth in this division. Whereas the Domestic market is particularly important to us in our distribution model, the real growth from our own products in the longer term will be attained internationally. During the financial year, we have made strong progress in both North America and Europe.
Our Technical Support department has contracts with NHS Trusts for planned preventative maintenance. Additionally, we also carry out ad hoc repairs chargeable by the hour and supply spare parts. Technical Support is a core part of our business, which adds value to distribution and helps differentiate us from competitors. Our service offering includes 24/7 emergency hire of life support equipment. Service revenues increased 17% year on year.
Operating Theatre
(GBP1.9 million, -5% year on year)
Our Operating Theatre business includes the original Inditherm surgical warming products as well as some distributed products in the UK that can add value to customers in this area. As expected, the performance reflects a slight decline in revenue for the products acquired from Inditherm in the reverse takeover in 2015 as we restructured this area of the business. Not only have we rationalised the product range to improve manufacturing efficiency, outsourcing production and closing our Rotherham facility towards the end of the year, we also commenced the repositioning of the pricing proposition. By challenging the commercial offering in the UK to offer longer term managed service contracts, thus generating recurring revenue over three years or more rather than an outright one-off sale, we can access NHS revenue budgets.
We expect to continue to increase the customer base and long term revenue as we continue to roll out this new offering to the NHS. We have been extremely pleased in the interest from new and existing customers who were previously unable to secure the large initial capital funding to proceed with our offering. Removing this barrier has significantly strengthened our position in this ever-competitive price sensitive market.
*In the Operational and Financial Review, all comparatives to 2016 are, unless otherwise stated, to the unaudited Proforma Consolidated Income Statement for 2016 ("Proforma") as set out in the Chairman's Report. The Proforma has the impact on 2016 of increasing revenue by GBP0.8 million and reducing operating profit (before impairment charges and exceptional items) by GBP0.2 million.
**EPS before impairment charges and exceptional items
Home Healthcare
(GBP2.4 million, +14% year on year)
We continue to see growth in our parenteral feeding product offering sharing experience with other infusion based products in the portfolio.
The industrial business of Inditherm has made a small contribution to this segment in 2017, but following a strategic review of the business, the decision to close the Rotherham facility during the year resulted in this business being discontinued.
Gross Profit
Gross Profit at GBP6.4 million increased by 6.4% over 2016 (GBP6.0 million). Gross margin declined to 44% from 46% due to the impact of exchange rate movements between Sterling and the Euro since "Brexit". This adversely impacted the gross margin of Distributed products which are sourced in Euro and largely sold domestically in Sterling. Some mitigation of the impact of exchange rates was achieved through selected price increases and supplier negotiations. Gross margins of Inspiration Branded products have held up well.
Operating Expenses
The year on year increase in operating expenses (before impairment charges and exceptional items) of GBP0.5 million is primarily due to higher investment in people-related costs to strengthen Sales and Marketing. Operating expenses (before impairment charges and exceptional items) amounted to 36.3% of revenue, improved from 37.2% in 2016.
Other Income
Other income was GBPnil in 2017 compared to GBP0.3 million in 2016, all of which related to one-time grant income received during that year. The Company will seek to apply for grants as and when the opportunity arises and the qualifying conditions can be met without compromising the direction or timing of the R&D project.
Exceptional Items
The Group presents certain items as exceptional items that are non-recurring and significant. These relate to items which, in the Board's judgement, need to be disclosed by virtue of their size and incidence in order to obtain a more meaningful understanding of the financial information. The exceptional items reported in 2017 consist of GBP0.1 million of severance costs following the change of Group Finance Director and GBP0.6 million for the closure of the Rotherham facility and associated impacts. See note 4 for more detail.
Taxation
The Group has recorded an income tax expense of GBP132,000 (2016: GBP136,000). For more detail see note 5.
Cashflow
The year-end cash and cash equivalents reduced to GBP2.2 million from GBP2.3 million in 2016. Cash generated from operations of GBP0.8 million was offset by payment of taxation GBP0.2 million and investing activities of GBP0.7 million. The primary areas of investment activity related to property, plant and equipment GBP0.3 million, including the new Corporate Head Office in Crawley, and GBP0.3 million of capitalised research and development expenditure.
Review of Business and Future Developments
On a Group basis the future prospects are set out in the Chairman's Report above. Due to the change in the structure of the business following the reverse acquisition during the year ended 31 January 2016 the Directors have included within the Chairman's Report a 12 month Proforma Consolidated Income Statement (unaudited) for 2016 as a comparison of performance to 2017. This comparison for 2016 is used by the Board as the basis for comparisons of financial performance for the year. The Board believes that overall the Annual Accounts and Consolidated Financial Statements are fair, balanced and understandable.
Share Price during the Year
The range of market prices during the period 1 February 2016 to 31 January 2017 as 34.0p to 73.5p and the market price of the Company's shares at 31 January 2016 was 60.5p.
Mike Briant
Chief Financial Officer
3 May 2017
Consolidated Statement of Comprehensive Income for the year ended 31 January 2017
2017 2016
GBP'000 GBP'000
Revenue 14,323 12,279
Cost of sales (7,965) (6,764)
Gross profit 6,358 5,515
Operating expenses (5,913) (5,664)
Other operating income - 295
Operating profit 445 146
Analysed as:
Operating profit before
impairment of goodwill and
intangible
assets and exceptional items 1,163 1,305
Impairment of goodwill and
intangible assets - (517)
Exceptional items (718) (642)
Finance income 3 3
Finance costs (4) (1)
Profit before tax 444 148 Income tax expense (132) (136) Total comprehensive income for the year attributable to owners of the parent company 312 12 Earnings per share, attributable to owners of the parent company- basic and diluted 1.02p 0.04p
Consolidated Statement of Financial Position as at 31 January 2017
*Restated
2017 2016
GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 535 242
Property, plant and equipment 365 166
Deferred tax asset - 45
Investments 106 100
1,006 553
Current assets
Inventories 778 780
Trade and other receivables 2,491 2,147
Cash and cash equivalents 2,165 2,319
5,434 5,246
Total assets 6,440 5,799
Liabilities
Current liabilities
Trade and other payables (2,893) (2,502)
Obligations under finance
leases (16) (17)
Deferred income (368) (340)
(3,277) (2,859)
Non-current liabilities
Deferred income (25) (72)
Obligations under finance
leases - (16)
Deferred tax liability (13) (39)
(38) (127)
Total liabilities (3,315) (2,986)
Net assets 3,125 2,813
Shareholders' equity
Called up share capital 3,067 3,067
Share premium account 9,929 9,929
Merger reserve 4,600 4,600
Reverse acquisition reserve (16,164) (16,164)
Retained earnings 1,693 1,381
Total equity attributable
to owners of the parent
company 3,125 2,813
*Restated: Split of deferred income between current and non-current.
Consolidated Statement of Changes in Shareholders' Equity
Issued Share Reverse
share premium Merger acquisition Retained
capital account reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 January
2015 511 9,929 - (10,440) 1,540 1,540
Profit for the
year and total
comprehensive
income - - - - 12 12
Dividends paid - - - - (171) (171)
Arising on reverse
acquisition - - - (5,724) - (5,724)
Shares issued
as consideration 2,556 - 4,600 - - 7,156
At 31 January
2016 3,067 9,929 4,600 (16,164) 1,381 2,813
Profit for the
year and total
comprehensive
income - - - - 312 312
At 31 January
2017 3,067 9,929 4,600 (16,164) 1,693 3,125
Consolidated Cash Flow Statement for the year ended 31 January 2017
*Restated
2017 2016
GBP'000 GBP'000
Cash flows from operating
activities
Cash generated from operations 771 1,793
Interest paid (4) (1)
Taxation paid (203) (172)
Net cash inflow from operating
activities 564 1,620
Cash flows from investing
activities
Interest received 3 2
Purchase of property, plant
and equipment (313) (132)
Purchase of intangible
assets (58) (169)
Capitalised development
costs (327) -
Cash and cash equivalents
acquired under reverse
acquisition - 894
Acquisition of investment (6) (100)
Net cash (used in) / generated
from investing activities (701) 495
Cash flows from financing
activities
Finance leases (17) 33
Dividends paid prior to
reverse acquisition - (171)
Net cash used in financing
activities (17) (138)
Net (decrease)/ increase
in cash and cash equivalents (154) 1,977
Cash and cash equivalents
at the beginning of the
year 2,319 342
Cash and cash equivalents
at the end of the year 2,165 2,319
*Restated: prior year previously showed interest paid under Investing activities
Notes
1 Accounting Policies
Basis of preparation
The Final Results have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the European Union ('Adopted IFRSs'), issued by the International Accounting Standards Board (IASB), including interpretations by the International Financial Reporting Interpretations Committee (IFRIC), and the Companies Act 2006 applicable to companies reporting under IFRS. The consolidated financial statements are prepared under the historical cost convention, as modified for any financial assets which are stated at fair value through operating profit or loss and for share based payments which are measured at fair value.
The consolidated financial statements cover the twelve months ended 31 January 2017. The financial statements for the comparative twelve months ended 31 January 2016 represent the substance of the reverse acquisition of Inditherm plc and are those of Inspiration Healthcare Limited.
This announcement does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. This announcement has been agreed with the Company's auditors for release. It contains information extracted from the audited financial statements of the Group for the year ended 31 January 2017 which were approved by the Board on 3 May 2017 and include an audit report which was unqualified and which did not contain
a statement under Section 498 of the Companies Act 2006.
Alternative financial measures
In the reporting of its financial performance, the Group uses certain measures that are not defined under IFRS, the Generally Accepted Accounting Principles (GAAP) under which the Group reports. The Directors believe that these non-GAAP measures assist with the understanding of the performance of the business. These non-GAAP measures are not a substitute for, or superior to, any IFRS measures of performance but they have been included as the Directors consider them to be an important means of comparing performance year-on-year and they include key measures used within the business for assessing performance.
2 Segmental analysis
Inspiration Healthcare Group's sales activities are split into three market sectors, Critical Care, Operating Theatre and Home Healthcare and the revenue segments are defined and reported in Our business and the Operating and financial review. There is no inter-segment trading.
The Group's Chief Operating Decision Maker is the Board of Directors. Following the restructuring during the year of the Group's manufacturing operations and the integration of the activities previously conducted in the Rotherham facility into the function-based management structure at our Leicester and Crawley facilities, the Board of Directors consider that it is more appropriate to report results as one single business segment, i.e. Critical Care Medical Devices. This is consistent with management accounting information reported regularly to the Board.
3 Revenue
Geographical analysis of revenue for the years ended 31 January 2017 and 31 January 2016 is as follows:
*Restated
2017 2016
GBP'000 GBP'000
UK 9,770 8,505
Europe 2,728 2,048
Asia Pacific 438 321
Middle East &
Africa 424 833
Americas 963 572
Total 14,323 12,279
*Restated: Prior year geographical split has been reanalysed: UK increased by GBP120,000, Europe reduced by GBP279,000, Asia Pacific reduced by GBP65,000, Middle East & Africa reduced by GBP11,000, Americas increased by GBP235,000.
Significant categories
of revenue
2017 2016
GBP'000 GBP'000
Goods sold 12,543 10,586
Services 1,780 1,693
14,323 12,279
No single customer accounted for more than 10% of revenue.
4 Exceptional items
2017 2016
GBP'000 GBP'000
Professional fees in relation
to the reverse acquisition (62) 472
Severance and related costs 136 170
Closure of facilities 644 -
Total exceptional items 718 642
5 Taxation
(a) Analysis of tax charge for the year
2017 2016
GBP'000 GBP'000
Domestic current year tax
UK corporation tax -
current year 153 268
prior year adjustment (40) -
UK corporation tax credit
-
current year - (20)
prior year adjustment - (81)
Total current tax 113 167
Deferred tax
origination and reversal of
temporary timing differences 23 (29)
prior year adjustment (4) (2)
Total deferred tax 19 (31)
Tax on profit on ordinary
activities 132 136
(b) Factors affecting tax charge for the year
The tax assessed for the year is higher (2016: higher) than the standard rate of corporation tax in the UK 20% (2016: 20.16%) as explained below:
2017 2016
GBP'000 GBP'000
Profit on ordinary activities
before taxation 444 148
---------------------------------- -------------------------- ----------------
Tax using the UK corporation
tax rate of 20% (2016: 20.16%) 89 30
Effects of:
Fixed asset differences 5 -
Non-deductible expenses 128 330
Chargeable losses - (57)
Tax losses utilised for research
and development claim 10 28
Additional deduction for research
and development (52) (19)
Adjustments to tax charge from
pre reverse acquisition earnings - (73)
Adjustments to tax charge in
respect of prior years (44) (2)
136 237
Research and development tax
credit -
current year (4) (20)
prior year - (81)
Total tax charge/(credit) 132 136
(c) Factors that may affect future tax charges
The group has gross unused losses estimated at GBP7,596,000. Brought forward losses transferred to the Group due to the reverse acquisition amount to GBP7,373,000 and are potentially available for relief against future trading profits.
6 Earnings per ordinary share
Basic earnings per share for the year is calculated by dividing the profit attributable to ordinary shareholders for the year after tax by the weighted average number of shares in issue. Basic diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential dilutive ordinary shares.
2017 2016
GBP'000 GBP'000
Profit
Profit attributable to equity
holders of the company 312 12
Impairment of goodwill and
intangible assets - 517
Exceptional items 718 642
Numerator for adjusted earnings
per share calculation 1,030 1,171
The weighted average number of shares in issue and the diluted weighted average number of shares in issue were as follows:
2017 2016
Shares
Weighted average number of ordinary
shares in issue during the year
for the purposes of basic earnings
per share 30,667,548 28,665,055
Dilutive effect of potential
Ordinary shares:
share options - 55,000
Diluted weighted number of shares
in issue during the year
for the purposes of diluted
earnings per share 30,667,548 28,720,055
The basic and diluted earnings per share for the year are as follows:
Basic Diluted Basic Diluted
2017 2017 2016 2016
pence pence pence pence
Earnings per share 1.02 1.02 0.04 0.04
The adjusted basic and diluted earnings per share for the year are as follows:
Basic Diluted Basic Diluted
2017 2017 2016 2016
pence pence pence pence
Adjusted earnings
per share 3.36 3.36 4.09 4.08
An adjusted earnings per share and an adjusted diluted earnings per share have also been calculated as in the opinion of the Directors this will allow shareholders to gain a clearer understanding of the trading performance of the Group. These adjusted earnings per share exclude:
-- Re-organisation and other significant non-recurring costs -- Impairment of goodwill and intangible assets -- The taxation effect at the appropriate rate on adjustments
Other than GBP110,000 of dilapidation cost, tax on exceptional items has been provisionally disallowed pending finalisation of the group tax computations. The tax impact of this is GBP22,000.
7 Intangible assets
Development Intellectual Software
costs property costs Goodwill Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 February
2015 - 395 59 - 454
Arising on reverse
acquisition - 139 - 378 517
Additions on
reverse acquisition 129 136 - - 265
Capitalised
in the year - 1 168 - 169
Disposals in
year - (10) - - (10)
At 1 February
2016 129 661 227 378 1,395
Capitalised
in the year 327 - 58 - 385
At 31 January
2017 456 661 285 378 1,780
Amortisation
At 1 February
2015 - 318 - - 318
Additions on
reverse acquisition 126 136 - - 262
Impairment of
intangible assets - 139 - 378 517
Charge in the
year 1 33 26 - 60
Disposals in
year - (4) - - (4)
At 1 February
2016 127 622 26 378 1,153
Charge in the
year 1 33 58 - 92
At 31 January
2017 128 655 84 378 1,245
Net book value
At 31 January
2017 328 6 201 - 535
At 31 January
2016 2 39 201 - 242
8 Property, plant and equipment
Plant,
Fixtures machinery,
Leasehold and office Motor
improvements fittings equipment vehicles Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 February
2015 5 32 159 23 219
Additions on
reverse acquisition - 237 198 10 445
Reclassification - - 503 - 503
Additions in
the year - - 132 - 132
Disposals in
year - - (14) - (14)
At 1 February
2016 5 269 978 33 1,285
Additions in
the year 221 1 91 - 313
Disposals in
year - (6) (76) - (82)
At 31 January
2017 226 264 993 33 1,516
Depreciation
At 1 February
2015 3 23 92 11 129
Additions on
reverse acquisition - 234 168 10 412 Reclassification - - 474 - 474 Charge in the year 1 3 108 6 118 Disposals in year - - (14) - (14) At 1 February 2016 4 260 828 27 1,119 Charge in the year 2 2 102 6 112 Disposals in year - (4) (76) - (80) At 31 January 2017 6 258 854 33 1,151 Net book value At 31 January 2017 220 6 139 - 365 At 31 January 2016 1 9 150 6 166 9 Cash and cash equivalents
Cash and cash equivalents comprise solely of cash at bank and cash in hand held by the Group.
The carrying amounts of the Group's cash and cash equivalents are denominated in the following currencies:
2017 2016
GBP'000 GBP'000
Pounds sterling 1,715 1,979
Euro 77 160
US Dollars 373 142
JPY - 38
2,165 2,319
10 Provision for other liabilities and charges
The provision for closure of facilities relates to the exceptional cost taken in the year and includes redundancy, dilapidations, project management, obsolete inventory and dual running lease and similar costs. The provision has arisen due to expected timing of cash outflows along with associated uncertainty regarding their final values, but is expected to be fully utilised in the coming financial year.
Closure
of
Regulatory facilities Total
GBP'000 GBP'000 GBP'000
At 31 January 2016 103 - 103
Charged / (credited)
to the Income Statement
- Additional provisions - 644 644
- Unused amounts reversed (62) - (62)
- Used during the period (41) (272) (313)
-------------------------- ---------------------------------- ------------- ----------
At 31 January 2017 - 372 372
11 Note to the Consolidated Statement of Cash Flows
2017 2016
GBP'000 GBP'000
Profit before taxation 444 148
Adjustments for:
Net finance costs / (income) 1 (2)
Impairment of goodwill - 378
Impairment of intangible assets - 139
Depreciation and amortisation 204 178
Loss on disposal of intangible
asset - 6
Loss on disposal of tangible asset 2 -
Decrease in inventories 2 14
(Increase) / decrease in trade
and other receivables (461) 379
Increase in trade and other payables 598 579
(Decrease) in deferred income (19) (26)
Net cash generated from operations 771 1,793
------------------------------------------ ------------------------- ---------------
12 Events after the reporting period
The closure of the corporate head office and manufacturing site at Rotherham was completed and lease surrendered on 10(th) March 2017 on completion of its term.
The new corporate office and R&D centre at Crawley, West Sussex officially opened in March 2017 and former R&D facility at Albourne was vacated.
There was no additional cost other than as recognised at balance sheet date.
Forward looking statements
Certain statements contained in this document constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of Inspiration Healthcare Group plc to be materially different from any future results, performance or achievements expressed or implied by such statements. Such risks, uncertainties and other factors include, among others: general economic conditions and business environment.
Annual Report
A further announcement will be made when the 2017 Annual Report and Financial Statements is available on the Company's website (www.inspiration-healthcare.com) and copies are sent to shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GMGGKNZZGNZM
(END) Dow Jones Newswires
May 03, 2017 02:00 ET (06:00 GMT)
1 Year Inspiration Healthcare Chart |
1 Month Inspiration Healthcare Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
