We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Midwich Group Plc | LSE:MIDW | London | Ordinary Share | GB00BYSXWW41 | ORD GBP0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 435.00 | 435.00 | 440.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Business Services, Nec | 1.29B | 26.82M | 0.2597 | 16.94 | 454.31M |
From Apr 2019 to Apr 2024
TIDMMIDW
RNS Number : 6210J
Midwich Group PLC
13 September 2016
For Immediate Release 13 September 2016
Midwich Group Plc
("Midwich" or "the Group")
Interim Results for the Six Months Ended 30 June 2016
Midwich, a specialist audio visual and document solutions distributor to the trade market, today announces its interim results for the six-month period ended 30 June 2016.
Hot Features
Premium
Note Six Months Ended
30 June 2016 30 June 2015 % change
Revenue 158,349 141,300 12%
Gross Profit 24,641 20,558 20%
Gross profit % 15.6% 14.6%
Operating profit 5,575 5,219 7%
Adjusted operating profit 13 7,872 6,414 23%
Adjusted operating profit % 5.0% 4.5%
Profit before tax 3,825 4,451 (14%)
Adjusted profit before tax 13 7,563 6,136 23%
Adjusted profit before tax % 4.8% 4.3%
Profit after tax 2,716 3,353 (19%)
Adjusted profit after tax 13 6,438 4,978 29%
Basic and diluted earnings per
share 3.5p 4.5p (22%)
Adjusted basic and diluted earnings
per share 13 8.7p 6.8p 28%
Interim Dividend per Share 1.5p - n/a
Financial Highlights
-- Revenue increased by 12.1% to GBP158.3 million (11.8% in constant currency) -- Gross margin increased by 1% to 15.6% due to improved product mix -- Adjusted operating profit increased by 22.7% to GBP7.9 million (22.4% on constant currency) -- Adjusted profit before tax improved by 23.3% to GBP7.6 million (22.9% on constant currency) -- Paying a maiden, interim dividend of 1.53 pence per share (2015: n/a)
Operating Highlights
-- Improved revenue and net profits across all territories driven by impressive growth in the audio visual business and the continued roll out of technical brands overseas
-- Significant new distribution agreements, including SMART Technologies in the UK and Biamp in Australia
-- Successfully listed on AIM in May 2016, positioning the Group well for its next stage of development and providing a strong platform for future growth
Post-Period Highlights
-- Acquisition of Holdan Limited, a UK based value-added distributor serving the UK and European broadcast and professional video markets
-- Acquisition of the business of Wired Limited, a small New Zealand based AV distributor
Andrew Herbert, Chairman, commented:
"We are pleased with performance over the first six months of the year, and in particular the continuing progress of the Group following the successful IPO in May. Sales increased in all territories, with particularly encouraging growth outside the UK.
The Group has a strong balance sheet and is well placed to continue its buy and build strategy in both new and existing territories. We were pleased to announce recently the acquisitions of Holdan Limited in the UK and Wired Limited in New Zealand.
The Board remains positive about the financial and operational prospects of the Group. Traditionally, the Group's financial performance tends to be slightly weighted towards the second half of the year, which we anticipate will be the case in the current year. Whilst it is still very early days, the uncertainties that have followed the Brexit vote so far appear to have had minimal impact on our business. Underlying trading since 30 June remains in line with the Board's expectations. As a result, on a constant currency basis and before the potential impact of the acquisition of Holdan, the Board's expectations for the full year remain unchanged. We expect the addition of Holdan to be modestly earnings accretive in the full year."
Enquiries:
Midwich Group +44 (0) 13 7964 9200
Stephen Fenby, Managing Director
Anthony Bailey, Finance Director
FTI Consulting +44 (0) 20 3727 1000
Oliver Winters/ Alex Beagley/ Tom Hufton
Note to Editors:
Midwich is a specialist AV and document solutions distributor to the trade market, with operations in the UK and Ireland, France, Germany and Australasia. The Group's long-standing relationships with over 300 vendors, including blue-chip organisations such as Samsung, LG, Epson and NEC, supports a comprehensive product portfolio across major audio visual categories such as large format displays, projectors, digital signage and printers. The Group operates as the sole or largest in-country distributor for a number of its vendors in their respective product sets. The Directors attribute this position to the Group's technical expertise, extensive product knowledge and strong customer service offering built up over a number of years. The Group has a large and diverse base of approximately 10,000 customers, most of which are professional AV integrators and IT resellers serving sectors such as corporate, education, retail, residential and hospitality. Although the Group does not sell directly to end users, it believes that the majority of its products are used by commercial and educational establishments rather than consumers.
Initially a UK only distributor, the Group now has 493 employees across the UK, Germany, France, Ireland, Australia and New Zealand, and in the six months to 30 June 2016, 36 per cent of the Group's revenues were derived from outside the UK. A core component of the Group's growth strategy is further expansion of its international operations and footprint into strategically targeted jurisdictions.
For further information, please visit www.midwichgroupplc.com
13 September 2016
Midwich Group Plc
("Midwich" or "the Group")
Interim Results for the six months ended 30 June 2016
INTERIM STATEMENT
MANAGING DIRECTOR'S REPORT
Overview
The Group has performed well in the first six months of 2016. Our business continues to develop in all markets, with particularly encouraging performances seen across our overseas businesses. The momentum of the business has also continued apace with the Group taking on a number of significant new distribution agreements, including SMART Technologies in the UK and Biamp in Australia.
Our admission to AIM ("IPO") in May 2016 has been well received by our customers, vendors and staff as the Group continues to follow the strategy that made it such a successful independent business. The Group's senior management team remains highly ambitious and focussed on driving performance.
Strategy
As stated at the time of IPO, the Group's strategy for growth is both organic and inorganic, reflecting the contributors to the successful growth track record in recent years.
The Group's organic growth strategy is focussed on the provision of market leading support to its customers and vendors. As a distributor, the Group neither develops product nor does it sell to the end-users of those products. It is aware that both its vendors and customers generally have a choice of distribution partner. The Group's expertise is the provision of services which provide the greatest assistance to vendors in pushing product out into the market, and to help customers provide the highest level of support to their end-users.
Underpinning the Group's growth strategy is its success in sourcing, executing and integrating its chosen acquisitions. The Group takes a disciplined approach to acquisitions, seeking to add capital value without an adverse impact on the existing business. Acquisitions remain a fundamental aspect of the Group's strategy and it continues to pursue a strong pipeline of opportunities.
Acquisitions and trading relationships
On 8 September the Group announced the acquisition of Holdan Limited, a UK based value-added distributor serving the UK and European broadcast and professonal video markets for a maximum consideration of approximately GBP7.1m(1) . This followed the purchase of the business of Wired Limited, a small New Zealand based AV distributor. As outlined at the time of IPO, the Group's robust balance sheet means it is well placed to continue its buy and build strategy both in new and existing territories.
Shortly before the end of the period, the Group signed a distribution agreement with SMART Technologies to distribute its products in the UK. SMART is a major supplier of digital whiteboards, collaboration software and interactive displays for education, business and government. Although it is too early to properly assess the potential impact of this new vendor relationship, the Board is pleased with initial progress.
Trading and Financial Review
Group turnover increased by 12% to GBP158.3 million for the period (H1 2015: GBP141.3m). Growth was achieved in all territories, with France and Germany demonstrating the largest growth at 43% and 23% respectively. Sidev in France continues to build market share in each of the projection, large format and technical categories. Kern and Stelly in Germany has focused more on higher end products in its key projector business, and has made encouraging progress in developing its large format display and technical product categories. The UK and Ireland segment grew at 7%, with particularly strong growth being seen in Ireland. Australasia grew at 10% - a notable performance given that the business had a large project in the first half of 2015 that did not recur in 2016.
The Group's gross margin improved by 1% to 15.6%, with particularly strong performance being seen in Australia (from 12.8% in the comparative period in 2015 to 15.3% in the first half of this year). The large fulfillment project in Australia in 2015 was at a relatively low margin and had a one off impact on the comparative margin. In addition, high margin brands have also taken an increasing share of our Australasian business in H1 2016.
The only territory in which gross margins declined was France, where the large format display category, which grew at the fastest rate year on year, is currently less profitable than other categories due to Sidev holding a relatively low market share and carrying out a higher proportion of fulfillment deals than other Group companies.
Operating profit (after one-off charges in respect of the IPO of GBP1.0 million) increased to GBP5.6 million (H1 2015: GBP5.2 million). Adjusting for the IPO costs & amortisation, the total increase in operating profit of GBP1.4 million to GBP7.9 million represents growth of 23% on H1 2015. Adjusted operating profit in the UK and Ireland improved by 11% (after adding back IPO costs), with particularly strong performance from Square One in Ireland and Invision in the UK. PSCo (the Group's rental and LED distribution specialist) had a slower than expected start to the year, following some product supply issues, but has since improved. Operating profit in Germany and Australasia grew by over 70% compared with the prior year, and the profit in France more than doubled (albeit from a low base in 2015).
Taxation
The tax charge for the period was GBP1.1 million (H1 2015: GBP1.1 million) which represents an effective tax rate of 22% (H1 2015: 23.5%). The charge in H1 2016 is stated after prior year credits amounting to an aggregate of GBP0.3m. The Group benefited from a very small foreign currency gain in H1. Were it to be sustained, the recent devaluation of Sterling to the Euro and Australian Dollar should have a positive impact on full year earnings.
Financial Position
The Group had a net cash outflow from operations before tax of GBP1.2 million for the period. This included a GBP1.0 million outflow in respect of one-off IPO costs. The negative movement in working capital in the period was partly down to normal seasonal factors in the first half of the year, a stronger increase in inventory in June 2016 (in expectation of higher trading over the summer months) and an expected reversal in the abnormally low level of inventory and trade receivables in Kern & Stelly at 31 December 2015.
The proceeds of the placing at IPO substantially strengthened the Group's financial position, resulting in net debt at 30 June 2016 of GBP13.9 million (GBP29.8 million at 31 December 2015)
Dividend
The Board is delighted to declare an interim dividend of 1.53p per share (2015: nil), which will be paid on 21 October 2016 to those shareholders on the Company's register as at 23 September 2016.
The Board intends to adopt a progressive dividend policy to reflect the Group's strong earnings potential and cash generative qualities whilst maintaining an appropriate level of dividend cover to allow the Board to invest in the Group's long term growth. This first interim dividend covers the period since the Company's Admission to AIM.
Outlook
The Board remains positive about the financial and operational prospects of the Group. Traditionally, the Group's financial performance tends to be slightly weighted towards the second half of the year, which we anticipate will be the case in the current year. Whilst it is still very early days, the uncertainties that have followed the Brexit vote so far appear to have had minimal impact on our business. Underlying trading since 30 June remains in line with the Board's expectations. As a result, on a constant currency basis and before the potential impact of the acquisition of Holdan, the Board's expectations for the full year remain
unchanged. We expect the addition of Holdan to be modestly earnings accretive in the full year.
Stephen Fenby
Managing Director
(1) The announcement on 8 September 2016 incorrectly stated a maximum consideration for Holdan Limited of GBP7.9m. Under the terms of the sale and purchase agreement entered into by Midwich, the maximum consideration that might be paid out by the Group including deferred consideration is c.GBP7.1m
KEY STRENGTHS
The Directors believe that the key strengths of the Group are as follows
-- Proven buy and build capabilities. The Group has proven expertise in entering new geographies and product markets through acquisition and then substantially growing the acquired businesses.
-- Strong financial track record and delivery of growth strategy. For each of the last ten years, the Group has delivered revenue growth and gross margin improvement.
-- Focus on the AV and document solutions markets. Depth of expertise and focus ensures that the Group has built up a strong position in the AV and document solutions markets, and is at the forefront of technological developments.
-- Key long-term, value-add relationships with major vendors and customers. Expertise and consistent delivery of high value-add services has built mutually beneficial long-term trading relationships with the Group's key vendors and customers. The Group's market insight, highly effective sales and marketing operations and efficient logistics provide significant value to both vendors and customers.
-- High value-add distribution with specialisms and bespoke service offering acting as a key differentiator. The focus on adding value rather than just cost differentiates the Group from its competitors and increases its relevance to customers and vendors. The Group's focus on products and technologies that are in their early to mid-growth phase increases its ability to provide a value-add service and enhances the value that vendors and customers can gain from the Group's offering.
-- Leading competitive position and established international platform for future growth, underpinned by compelling market drivers. With strong market positions in most of its product and geographical markets, the Group is well placed to take advantage of the opportunities presented by increased demand for AV products and the development of new technologies.
-- Experienced management team with long-standing industry expertise. Senior management team with an average of 18 years' experience in the AV and/or document solutions markets. Experience gained through distributors, integrators and manufacturers gives an in-depth understanding of the needs of different parts of the market.
GROUP STRATEGY AND GROWTH OPPORTUNITIES
The Group's growth strategy is both organic and inorganic, reflecting the contributors to the successful growth track record in recent years. Underpinning the Group's growth strategy is its success in sourcing, executing and integrating its chosen acquisitions. The Group takes a disciplined approach to acquisitions, seeking to add capital value without an adverse impact on the existing business. Acquisitions remain a fundamental aspect of the Group's strategy, of which it has a strong ongoing pipeline of multiple opportunities that it will be reviewing and actively engaging with at any given time. The Group expects its future acquisitions to fit a similar mould to those it has completed historically with regards size and valuation. The Board believe they have had success in acquiring businesses for sensible multiples and driving good growth post-acquisition and this is something they will continue to target.
Overall strategy comprises development across the Group's established jurisdictions, developing jurisdictions and potential new jurisdictions. It involves continued progression in areas of technology, product and vendor selection to ensure that the right growth areas are targeted in order to maximise the value that the Group can add to customers in a manner that maximises gross margins.
Established jurisdictions
Across the UK and Ireland, the core focus is on the continued development of the respective product portfolios and the appropriate mix of higher margin and higher growth product sets. Areas of particular focus are currently large format display, LED display technology, audio and technical products. The development of the business is reliant on continued success in identifying and developing the business into new product areas and technologies. In addition, the success of the Group's operations in its established markets has been underpinned by the high levels of service provided to both vendors and customers. The future growth of the business will continue to be driven by the ability of the Group to consistently deliver high general service levels and further penetration of the Midwich Solutions offering across the client base. The Group will also continue to use selective acquisitions to enter or grow its presence in market niches where it sees opportunities. This is most likely to include acquisitions that will add to the Group's capability in a new or underweight technology or product area, such as security or broadcast equipment.
Developing jurisdictions
Across the Group's developing markets - France, Germany, Australia and New Zealand - the core focus is on driving profitable market share growth in these regions. The means of driving this growth will be the continued expansion of the product range, which are more limited in these geographies than in the Group's more established UK market, with a bias towards higher margin and technical products. The Group has established a successful blueprint in the UK for targeted acquisitions to bolster its product offering and sector penetration. Bolt-on acquisitions to either gain access to new areas or increase scale will be a key focus of the Group in its developing markets.
New jurisdictions
The Group intends to continue executing its successful strategy of entering into new jurisdictions through carefully targeted acquisitions, as was the case with its entry into each of the German, French, Irish and Australasian markets. The Group has so far chosen to enter new jurisdictions by way of acquisition rather than organically in order to ensure immediate local market knowledge, an established brand name and a local reputation. However, the Group may choose to enter organically in some circumstances.
The Group takes a disciplined approach to acquisitions with assessments made as to the long-term strategic rationale of opportunities based on the following criteria used to assess opportunities and new markets:
-- Size of the local market -- Global brand penetration and interest -- Vendor perceptions -- Market dynamics -- Competitive positions -- Cultural fit of brands and management teams
Further expansion opportunities have been identified across Europe and the Group expects to increase its European footprint within three years. Specifically, the Netherlands, Italy, Spain, Sweden and Poland are large AV European markets and could all present attractive opportunities for the Group. Outside of Europe, it is intended that the Group will further develop its Asia Pacific presence from its current Australasian base.
Unaudited Consolidated Income Statement for the 6 months ended 30 June 2016
Note 30 June 30 June 31 December 2015
2016 2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue 158,349 141,300 314,283
Cost of sales (133,708) (120,742) (267,322)
---------- ---------- -----------------
Gross profit 24,641 20,558 46,961
Distribution costs (16,001) (14,122) (30,037)
Admin expenses (3,380) (2,382) (6,751)
Exceptional admin expenses 6 (1,018) - -
Other operating income 1,333 1,165 2,468
---------- ---------- -----------------
Operating profit 5,575 5,219 12,641
Finance income - - 4
Finance costs 5 (1,750) (768) (4,087)
---------- ---------- -----------------
Profit before taxation 3,825 4,451 8,558
Taxation (1,109) (1,098) (2,746)
---------- ---------- -----------------
Profit after taxation 2,716 3,353 5,812
Profit for the financial year attributable to:
The company's equity shareholders 2,461 3,146 5,005
Non-controlling interest 255 207 807
---------- ---------- -----------------
2,716 3,353 5,812
========== ========== =================
Basic & diluted earnings per share 3 3.47p 4.47p 7.14p
========== ========== =================
Unaudited Consolidated Statement of Comprehensive Income for 6 months ended 30 June 2016
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit for the financial
year 2,461 3,146 5,005
Other comprehensive income
- items that may subsequently
be reclassified to profit
/ loss
Foreign exchange (losses)
/ gains on consolidation 1,261 (877) (785)
---------- ---------- ------------
Other comprehensive income
for the financial year,
net of tax 1,261 (877) (785)
---------- ---------- ------------
Total comprehensive income
for the financial year
attributable to the Company's
equity shareholders 3,722 2,269 4,220
========== ========== ============
Total comprehensive income
for the financial year
attributable to non-controlling
interests 255 207 807
========== ========== ============
Total comprehensive income
for the financial year 3,977 2,476 5,027
Unaudited Consolidated Balance Sheet as at 30 June 2016
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Goodwill 3,303 3,303 3,303
Intangible assets 18,370 20,665 19,520
Property, plant and equipment 3,424 3,027 3,653
---------- ---------- ------------
25,097 26,995 26,476
Current assets
Inventories 40,351 33,038 37,849
Trade and other receivables 48,015 43,241 42,707
Cash and cash equivalents 14,880 12,040 18,102
---------- ---------- ------------
103,246 88,319 98,658
Current liabilities
Trade and other payables (51,870) (44,620) (52,692)
Financial instruments - (3,299) (6,094)
Deferred consideration - (1,422) -
Borrowings (28,737) (39,811) (41,968)
Current tax (1,995) (1,380) (2,264)
---------- ------------
(82,602) (90,532) (103,018)
---------- ---------- ------------
Net current assets /
(liabilities) 20,644 (2,213) (4,360)
---------- ---------- ------------
Non-current liabilities:
Borrowings - (9,790) (5,908)
Finance lease payables (26) (190) (166)
Deferred tax (3,378) (3,914) (3,664)
---------- ---------- ------------
(3,404) (13,894) (9,738)
---------- ---------- ------------
Net assets 42,337 10,888 12,378
========== ========== ============
Capital and reserves
Share capital 794 1,449 1,398
Share premium 25,857 - -
Investment in own shares (5) (1,000) (1,000)
Retained earnings 15,220 7,853 8,652
Translation reserve 271 (1,082) (990)
Put option reserve - (1,735) (1,735)
Capital redemption reserve 50 - 50
Other reserve 150 1,145 1,145
---------- ---------- ------------
Equity attributable to
owners of parent 42,337 6,630 7,520
Non-controlling interests - 4,258 4,858
---------- ---------- ------------
Total equity 42,337 10,888 12,378
========== ========== ============
Unaudited Consolidated Statement of Changes in Equity for 6 months ended 30 June 2016
For the period ended 30 June 2016
Share Share Investment Retained Translation Put Capital Other Equity Non-controlling Total
capital premium in own earnings reserve option redemption reserve attributable interests
shares reserve reserve to owners
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance
at 1 January
2016 1,398 - (1,000) 8,652 (990) (1,735) 50 1,145 7,520 4,858 12,378
Profit
for the
period - - - 2,461 - - - - 2,461 255 2,716
Other
comprehensive
Income - - - - 1,261 - - - 1,261 - 1,261
-------- -------- ----------- --------- ------------ -------- ----------- -------- ------------- ---------------- --------
Total
comprehensive
income - - - 2,461 1,261 - - - 3,722 255 3,977
Bonus
share
issue* 663 - (5) (663) - - - 5 - - -
Share
capital
reduction* (1,392) - 1,000 1,392 - - - (1,000) - - -
Issue
of shares* 125 26,647 - - - - - - 26,772 - 26,772
Costs
of share
issue* - (790) - - - - - - (790) - (790)
Acquisition
of
non-controlling
interest
(note
9) - - - 3,378 - 1,735 - - 5,113 (5,113) -
-------- -------- ----------- --------- ------------ -------- ----------- -------- ------------- ---------------- --------
Transactions
with owners (604) 25,857 995 4,107 - 1,735 - (995) 31,095 (5,113) 25,982
At 30
June 2016
(Unaudited) 794 25,857 (5) 15,220 271 - 50 150 42,337 - 42,337
-------- -------- ----------- --------- ------------ -------- ----------- -------- ------------- ---------------- --------
*See note 8
For the period ended 30 June 2015
Share Investment Retained Translation Put Other Equity Non-controlling Total
capital in own earnings reserve option reserve attributable interests
shares reserve to owners
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at
1 January
2015 1,449 (1,000) 4,707 (205) (1,735) 1,145 4,361 4,051 8,412
Profit for
the period - - 3,146 - - - 3,146 207 3,353
Other
comprehensive
Income - - - (877) - - (877) - (877)
-------- ----------- --------- ------------ -------- -------- ------------- ---------------- --------
Total
comprehensive
income - - 3,146 (877) - - 2,269 207 2,476
At 30 June
2015
(Unaudited) 1,449 (1,000) 7,853 (1,082) (1,735) 1,145 6,630 4,258 10,888
-------- ----------- --------- ------------ -------- -------- ------------- ---------------- --------
For the year ended 31 December 2015
Share Investment Retained Translation Put Capital Other Equity Non-controlling Total
capital in own earnings reserve option redemption reserve attributable interests
shares reserve reserve to owners of
the parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2015 1,449 (1,000) 4,707 (205) (1,735) - 1,145 4,361 4,051 8,412
Profit for the
year - - 5,005 - - - - 5,005 807 5,812
Other
comprehensive
Income - - - (785) - - - (785) - (785)
-------- ----------- --------- ------------ -------- ----------- -------- ------------- ---------------- --------
Total
comprehensive
income for
the year - - 5,005 (785) - - - 4,220 807 5,027
Purchase of
own shares (51) - (1,060) - - 50 - (1,061) - (1,061)
-------- ----------- --------- ------------ -------- ----------- -------- ------------- ---------------- --------
Transactions
with owners (51) - (1,060) - - 50 - (1,061) - (1,061)
At 31 December
2015
(Audited) 1,398 (1,000) 8,652 (990) (1,735) 50 1,145 7,520 4,858 12,378
======== =========== ========= ============ ======== =========== ======== ============= ================ ========
Unaudited Consolidated Cashflow Statement for 6 months ended 30 June 2016
30 June 30 June 31 December
2016 2015 2015
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash outflow from operating activities
Profit before tax 3,825 4,451 8,558
Depreciation 604 276 810
Amortisation 1,279 1,195 2,473
Gain on disposal of assets (85) - (121)
Foreign exchange (gains)/losses (15) (360) (22)
Finance income - - (4)
Finance costs 1,750 768 4,087
---------- ---------- ------------
Adjusted profit from operations
before changes in working capital 7,358 6,330 15,781
(Increase) / decrease in inventories (2,502) 3,497 (1,265)
(Increase) in trade and other receivables (5,308) (3,700) (3,168)
(Decrease) / increase in trade and
other payables (755) 917 9,104
---------- ---------- ------------
Cash flow from operations (1,207) 7,044 20,452
Income tax paid (1,664) (1,233) (2,248)
---------- ---------- ------------
Net Cash outflow from operating
activities (2,871) 5,811 18,204
Cash flow from investing activities
Acquisition of non-controlling interest (7,454) - -
Business acquisitions - (2,035) (2,170)
Cash acquired within business combination - 686 686
Deferred consideration paid - - (1,422)
Purchase of intangible assets (126) (3) (64)
Purchase of plant and equipment (606) (100) (1,261)
Proceeds on disposal of plant and
equipment 371 - 449
Interest received - - 4
---------- ---------- ------------
Net cash outflow from investing
activities (7,815) (1,452) (3,778)
---------- ---------- ------------
Net cash from financing activities
Issue of shares net of issue costs 25,982 - -
Invoice financing inflows / (outflows) (3,688) 1,293 2,337
Purchase of own shares - - (1,061)
New loans - - 6,500
Repayment of loans (13,424) (3,280) (13,052)
interest paid (390) (779) (1,683)
interest paid on finance leases (10) (6) (22)
Capital element of finance lease
payments (219) (188) (406)
---------- ---------- ------------
Net cash inflow / (outflow) from
financing activities 8,251 (2,960) (7,387)
Net (decrease) / increase in cash
and cash equivalents (2,435) 1,399 7,039
Cash and cash equivalents at beginning
of year 14,351 8,053 8,053
Effects of exchange rate changes 1,222 (517) (741)
-------- ------ -------
Cash and cash equivalents at end
of year 13,138 8,935 14,351
======== ====== =======
Comprising:
Cash at bank 14,880 12,040 18,102
Bank overdrafts (1,742) (3,105) (3,751)
-------- -------- --------
13,138 8,935 14,351
======== ======== ========
Notes to the Interim Consolidated Financial Information
1. GENERAL
The interim financial information for the period to 30 June 2016 is unaudited and does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.
They do not include all the information required in annual financial statements in accordance with IFRS, and should therefore be read in conjunction with the consolidated financial statements for the year ended 31 December 2015.
2. ACCOUNTING POLICIES
The interim financial information in this report has been prepared on the basis of the accounting policies set out in the audited financial statements for the year ended 31 December 2015, which complied with International Financial Reporting Standards as adopted for use in the European Union ("IFRS").
The financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 31 December 2016.
The Directors have adopted the going concern basis in preparing the financial information. In assessing whether the going concern assumption is appropriate, the Directors have taken into account all relevant available information about the foreseeable future.
The statutory accounts for the year ended 31 December 2015, which were prepared under IFRS, have been delivered to the Registrar of Companies. The auditors reported on these accounts; their report was unqualified; did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006, and did not include reference to any matters to which the auditor drew attention by way of emphasis.
3. EARNINGS PER SHARE
Basic earnings per share is based on the profit after tax for the year and the weighted average number of shares in issue during the year. Preference shares are non-participating and therefore excluded.
Diluted earnings per share is calculated by adjusting the average number of shares in issue during the period to assume conversion of all dilutive potential ordinary shares. The Company has no potentially dilutive shares in any period presented. Diluted loss per share is therefore the same as basic loss per share.
June June December
2016 2015 2015
Profit attributable to equity holders of the Group (GBP'000) 2,461 3,146 5,005
Weighted average number of shares in issue* 71,000,398 70,402,145 70,070,235
----------- ----------- -----------
Basic & diluted earnings per share 3.47p 4.47p 7.14p
=========== =========== ===========
*The weighted average number of shares for the purpose of earnings per share has been based on the assumed number of shares as if the bonus issue on 29 April 2016 had occurred at the beginning of the earliest period presented.
4. SEGMENTAL REPORTING
June June December
2016 2015 2015
Segment revenues: GBP'000 GBP'000 GBP'000
UK & Ireland 109,532 102,337 221,435
France 14,536 10,181 23,981
Germany 24,157 19,590 51,013
Australasia 10,124 9,192 17,854
-------- -------- ---------
Total for continuing operations 158,349 141,300 314,283
-------- ======== =========
June June December
2016 2015 2015
Gross profit by segment: GBP'000 GBP'000 GBP'000
UK & Ireland 17,961 15,525 34,745
France 1,915 1,446 3,301
Germany 3,220 2,407 6,366
Australasia 1,545 1,180 2,549
-------- -------- ---------
Gross profit 24,641 20,558 46,961
-------- ======== =========
June June December
2016 2015 2015
Segment results: GBP'000 GBP'000 GBP'000
UK & Ireland 3,508 4,079 8,944
France 342 152 489
Germany 1,159 661 2,505
Australasia 566 327 703
-------- -------- ---------
Total for continuing operations 5,575 5,219 12,641
Interest income - - 4
Interest expense (1,750) (768) (4,087)
-------- -------- ---------
Profit before tax 3,825 4,451 8,558
-------- ======== =========
Segment assets and liabilities
June June December
2016 2015 2015
Segment assets: GBP'000 GBP'000 GBP'000
UK & Ireland 93,520 89,697 95,732
France 10,561 8,318 7,544
Germany 17,799 12,987 16,824
Australasia 6,463 4,312 5,034
-------- -------- ---------
Total Consolidated Assets 128,343 115,314 125,134
-------- ======== =========
June June December
2016 2015 2015
Segment liabilities: GBP'000 GBP'000 GBP'000
UK & Ireland 65,557 90,147 94,255
France 9,701 6,752 7,056
Germany 5,899 4,610 7,118
Australasia 4,849 2,917 4,327
-------- -------- ---------
Total Consolidated Liabilities 86,006 104,426 112,756
======== ======== =========
Other information:
June June December
2016 2015 2015
Depreciation and amortisation GBP'000 GBP'000 GBP'000
UK & Ireland 1,539 1,209 2,760
France 63 45 95
Germany 207 203 389
Australasia 74 14 39
-------- -------- ---------
Total Consolidated 1,883 1,471 3,283
-------- ======== =========
June June December
2016 2015 2015
Total non-current assets GBP'000 GBP'000 GBP'000
UK & Ireland 20,615 22,356 20,122
Rest of the world 4,482 4,639 6,354
-------- -------- ---------
Total Consolidated 25,097 26,995 26,476
======== ======== =========
5. FINANCE COSTS
June 2016 June 2015 December 2015
GBP'000 GBP'000 GBP'000
Interest on overdraft and invoice discounting 305 265 568
Interest on finance leases 20 13 22
Dividend on preference shares treated as borrowings (14) 31 61
Interest on other loans 79 266 448
Interest & fair value movement on put option liability 1,360 193 2,988
1,750 768 4,087
========== ========== ==============
6. EXCEPTIONAL ADMINISTRATIVE EXPENSES
Exceptional administrative expenses in the period consists of expenses incurred pertaining to the admission of the company to the AIM Market.
7. BORROWINGS
On 22 April, the Preference shares classified as a financial liability were redeemed, settling the financial liability of GBP3,187,000 in full.
Proceeds from the issue of share capital were also used to pay the following borrowings balances:
-- Loan notes GBP3,737,000 -- Bank loan GBP6,500,000 8. SHARE CAPITAL
The total allotted share capital of the company is:
Allotted, issued and fully paid
June 2016 June 2015 December 2015
Classed as equity: Number GBP'000 Number GBP'000 Number GBP'000
Ordinary shares of GBP0.01 each 79,448,200 794 - - - -
Ordinary shares of GBP1 each - - 446,000 446 396,000 396
Preference share of GBP1 each - - 4,123,746 4,124 4,123,746 4,124
A Ordinary shares of GBP0.01 each - - 54,000 - 52,500 -
B1 Ordinary shares of GBP0.01 each - - 174,474 3 174,474 2
B2 Ordinary shares of GBP0.01 each - - 9,214 - - -
B3 Ordinary shares of GBP0.01 each - - 7,179 - 7,179 -
B4 Ordinary shares of GBP0.01 each - - 7,179 - - -
B5 Ordinary shares of GBP0.01 each - - 14,358 - 14,358 -
79,448,200 794 4,836,150 4,573 4,768,257 4,522
Shares classed as financial
liabilities:
Preference shares of GBP1 each - - (3,123,746) (3,124) (3,123,746) (3,124)
Total equity 79,448,200 794 1,712,404 1,449 1,644,511 1,398
=========== ======== ============ ======== ============ ========
Share transactions effected during the period (see notes):
Number of shares
Buy
back Write
of down
Issue B5 Redemption of Issue
of Ordinary Share of Preference, Re-designation Bonus of
Opening B1 shares capital Preference B3 and to Ordinary share Ordinary Closing
1 January Ordinary 4 reduction shares B5 shares shares issue shares 30 June
2016 shares* February 13 April 22 April 29 April 29 April 29 April 3 May 2016
Ordinary
shares of
GBP0.01 - - - - - - 669,482 66,278,718 12,500,000 79,448,200
Ordinary
shares of
GBP1 396,000 - - - - - (396,000) - - -
Preference
shares of
GBP1 4,123,746 - - - (3,123,746) (995,193) (4,807) - - -
A Ordinary
shares of
GBP0.01 52,500 - - - - - (52,500) - - -
B1 Ordinary
shares of
GBP0.01 174,474 36,450 - - - - (210,924) - - -
B2 Ordinary
shares of
GBP0.01 - - - - - - - - - -
B3 Ordinary
shares of
GBP0.01 7,179 - - - - (4,331) (2,848) - - -
B4 Ordinary
shares of
GBP0.01 - - - - - - - - - -
B5 Ordinary
shares of
GBP0.01 14,358 (7,179) - - (4,776) (2,403) - - -
4,768,257 36,450 (7,179) - (3,123,746) (1,004,300) - 66,278,718 12,500,000 79,448,200
---------- --------- --------- ---------- ------------ ------------ --------------- ----------- ----------- -----------
Value of shares
GBP'000
Buy
back Write
of down
Issue B5 Redemption of Bonus Issue
Opening of Ordinary Share of Preference, Re-designation share of
1 B1 shares capital Preference B3 and to Ordinary issue Ordinary Closing
January Ordinary 4 reduction shares B5 shares shares 29 shares 30 June
2016 shares* February 13 April 22 April 29 April 29 April April 3 May 2016
Ordinary
shares of
GBP0.01 - - - - - - 6 663 125 794
Ordinary
shares of
GBP1 396 - - (392) - - (4) - - -
Preference
shares of
GBP1 4,124 - - (990) (3,124) (10) (0) - - -
A Ordinary
shares of
GBP0.01 - - - - - - - - - -
B1 Ordinary
shares of
GBP0.01 2 - - - - - (2) - - -
B2 Ordinary
shares of
GBP0.01 - - - - - - - - - -
B3 Ordinary
shares of
GBP0.01 - - - - - - - - - -
B4 Ordinary
shares of
GBP0.01 - - - - - - - - - -
B5 Ordinary
shares of
GBP0.01 - - - - - - - - - -
4,522 - - (1,382) (3,124) (10) - 663 125 794
-------- --------- --------- ---------- ----------- ------------ --------------- ------ --------- --------
* Issue of B1 Ordinary shares took place on the following dates at a price of GBP21.20 per share:
13 January 10,000
18 January 20,000
4 February 3,700
10 March 2,750
-------
36,450
-------
Notes on share capital movements
As explained further in the admission document, the following share capital changes (as illustrated in the above tables) have taken place during the period:
1. Issue of B1 Ordinary shares at GBP21.20 per share as noted above, creating share premium of GBP772,000
2. Buy back of 7,179 B5 Ordinary shares on 4 February for cancellation at par value
3. Share capital reduction on 13 April, reducing the equity Preference share capital and Ordinary share capital from GBP1.00 per share nominal value to GBP0.01 per share nominal value
4. Redemption of Preference shares classified as a financial liability on 22 April, settling the financial liability in full
5. Re-designation of the Preference shares', B3 shares' and B5 shares' percentages on 29 April, and subsequently re-designation of these as Deferred shares, pursuant to which these Deferred shares were transferred in favour of the Company for nil consideration and then cancelled.
6. Re-designation of all remaining categories of shares as GBP0.01 Ordinary shares on 29 April
7. Bonus share issue on 29 April in the proportion of 99 Ordinary shares for each existing Ordinary share
8. Placing of new shares on 3 May (date of admission to the AIM Market) at GBP2.08 per share, creating share premium of GBP25,875,000 less issue costs of GBP790,000
All reductions in value of existing share capital have created additional distributable reserves which have been recorded in retained earnings. The bonus issue of ordinary shares has used some of the additional distributable reserves created by the preceding share capital reductions.
Rights and obligations
Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
Employee benefit trust
The employee benefit trust previously owned 1,000,000 of the Preference shares. This proportion of the share capital was treated as equity for disclosure purposes. Further to the above share capital changes, the employee benefit trust owns 480,700 GBP0.01 Ordinary shares.
9. ACQUISITION OF NON-CONTROLLING INTEREST
On 9 May, the Group exercised a call option to acquire the remaining 49% non-controlling interest in their subsidiary, Kern & Stelly Medientechnik GmbH for EUR9,237,000.
As a result of this acquisition, the put option liability and put option reserve have been derecognised and the non-controlling interests in equity have been extinguished.
As this company was previously consolidated as a subsidiary, no other changes in the net assets of the subsidiary included in the consolidated financial statements arise because no change in control has occurred.
10. CURRENCY IMPACT
The Group report in Pounds Sterling (GBP) but has significant revenues and costs as well as assets and liabilities that are denominated in Euros (EUR) and Australia Dollars (AUD). The table below sets out the prevailing exchange rates in the periods reported.
Six months to At 30 June At 31 December
30 June
2016 2015 2016 2015 2015
Average Average
EUR/GBP 1.3004 1.3244 1.2076 1.3916 1.3559
AUD/GBP 1.9658 1.9079 1.8022 1.9822 2.0190
The impact of changes in the key exchange rates from the first half of 2015 to the first half of 2016 are summarised as follows:
GBP000 EUR AUD Impact on revenues 662 (256) Impact on profit before tax 25 (8) Impact on net debt 91 (37)
11. COPIES OF INTERIM REPORT
Copies of the interim report are available to the public free of charge from the Company at Vinces Road, Diss, IP22 4YT.
12. POST BALANCE SHEET EVENTS
Share Awards
On 1 July 2016 the Company issued conditional share awards and share options to staff. The conditional award was offered to all staff who had been employed by the Group for at least one year prior to the IPO date of 6 May 2016. Share options were offered to a number of senior management around the Group, none of whom were shareholders at the time of the IPO. All of these share awards will vest on 1 July 2019. The maximum number of shares which will vest under these awards is 187,500.
No member of the Board participated in these share awards.
13. ADJUSTMENTS TO REPORTED RESULTS
Six months ended
30 June 30 June
2016 2015
GBP000 GBP000
Operating profit 5,575 5,219
Exceptional administrative costs 1,018 -
Amortisation 1,279 1,195
Adjusted operating profit 7,872 6,414
Profit before tax 3,825 4,451
Exceptional administrative costs 1,018 -
Amortisation 1,279 1,195
Finance costs - put and call option 1,360 193
Finance costs - interest on loan notes
and preference shares 81 297
Adjusted profit before tax 7,563 6,136
Profit after tax 2,716 3,353
Exceptional administrative costs 1,018 -
Amortisation 1,279 1,195
Finance costs - put and call option 1,360 193
Finance costs - interest on loan notes
and preference shares 81 297
Tax impact - at 20% / 20.25% (16) (60)
Adjusted profit after tax 6,438 4,978
Profit after tax 2,716 3,353
Non-controlling interest (255) (207)
Profit after tax attributable 2,461 3,146
Adjusted profit after tax 6,438 4,978
Non-controlling interest (255) (207)
Adjusted profit after tax attributable 6,183 4,771
Number of shares 71,000,398 70,402,145
Reported EPS - pence 3.5p 4.5p
Adjusted EPS - pence 8.7p 6.8p
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKBDQOBKDQCD
(END) Dow Jones Newswires
September 13, 2016 02:00 ET (06:00 GMT)
1 Year Midwich Chart |
1 Month Midwich 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
