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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Norman Broadbent Plc | LSE:NBB | London | Ordinary Share | GB00B3VF4Y66 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 9.75 | 9.00 | 10.50 | 9.75 | 9.75 | 9.75 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Business Consulting Svcs,nec | 8.7M | -338k | -0.0056 | -17.41 | 5.92M |
From Apr 2019 to Apr 2024
TIDMNBB
RNS Number : 1738S
Norman Broadbent PLC
29 September 2017
Norman Broadbent plc
("Norman Broadbent" or "the Company" or "the Group")
Interim Results
Norman Broadbent plc (AIM: NBB) - a leading provider of Talent Acquisition & Advisory Services, comprising Board and Executive Search, Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive-level Recruitment Solutions today announces its unaudited interim results for the six months ended 30 June 2017.
Highlights
-- Phase One of the turnaround completed; Phase Two of the turnaround underway -- New Senior Leadership Team appointed across all NB brands -- New fee-earning hires ahead of plan and contributing -- Gary Browning appointed as a Senior Advisor to the Board -- Losses significantly reduced from the six months to 31 December 2016 -- New Group CFO in final stage of appointment -- Equity placing to raise GBP1.23m to be shortly announced
Mike Brennan, CEO of Norman Broadbent, said:
"The company has completed Phase One of its restructuring and is now well positioned to move forward with confidence and anticipates announcing the details of an equity placing later this morning as we move into Phase Two of our plan".
For further information please contact:
Norman Broadbent plc
Mike Brennan/Frank Carter 020 7484 0000
WH Ireland Limited
Adrian Hadden/ Jessica Cave/ Alex Bond 020 7220 1666
Notes to Editors
Norman Broadbent plc is a leading provider of Talent Acquisition & Advisory Services. These comprise Board and Executive Search, Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive-level Recruitment Solutions.
For further information visit www.normanbroadbent.com
CEO Review:
As set out in table below in the 6 months to 30 June 2017 the Group incurred an operating loss of GBP667,000 (2016: loss GBP62,000) on turnover of GBP3,292,000 (2016: GBP3,366,000).
This comparison belies the very substantial progress made by the Group in the period both in the completion of the first, defensive consolidation, phase of its business plan and the improvement in trading as compared to the 6 months to 31 December 2016 which had resulted in an operating loss of GBP1,161,000 on turnover of GBP2,295,000.
In the period we have seen significant changes in personnel, proposition and process across the businesses. The changes in personnel reflect the filling of important senior leadership positions, the replacement of underperforming consultants and newer, more robust internal recruitment process. The more diverse portfolio of offerings has enabled an encouraging increase in cross selling by each of our businesses, and clients have responded well to the development of enhanced service lines and a more integrated offering.
We now have a more diverse offering, with varied revenue streams and less reliance on executive search, a service line which continues to be an important offering. We are now positioning ourselves to move into Phase 2, the Growth Phase, of the strategic plan which will seek to scale up our businesses and move forward.
Summarised Financial Results:
The table below summarises the results for the Group.
Hot Features
Premium
Re-Presented
Six months Six months Year ended
to 30 June to 30 June 31 Dec
2017 2016 2016
GBP000's GBP000's GBP000's
Continuing operations
Revenue 3,292 3,366 5,661
Cost of sale (696) (424) (735)
------------ ------------- -----------
Gross profit 2,596 2,942 4,926
Operating expenses (3,263) (3,004) (6,149)
Group operating profit / (loss) (667) (62) (1,223)
------------ ------------- -----------
Net finance cost (12) (33) (54)
(Loss) / profit before tax (679) (95) (1,277)
Income tax - - -
------------ ------------- -----------
(Loss) / profit from discontinued
operation - (11) 279
------------ ------------- -----------
(Loss) / profit after tax (679) (106) (998)
------------ ------------- -----------
Norman Broadbent Executive Search ("NBES")
NBES underwent substantial restructuring during the first 6 months of 2017. This has included significant investment in new hires, including the appointment of Tim Hammett as Managing Partner and the departure of a number of underperforming legacy consultants. The process of dealing with legacy departures is now complete, and the new consultant hires made in Q1/Q2 2017 are ahead of plan. As a result of the restructure and subsequent reinvestment, revenues fell to GBP1,430,000 from GBP2,351,000 in H1 2016, resulting in a loss of GBP566,000 (Profit GBP329,000). Encouragingly, NBES has had its highest new retainer wins so far this year in the month of September.
Norman Broadbent Interim Management ("NBIM")
NBIM was re-launched at the end of 2016 with the hiring of Angela Hickmore as Managing Director. While still an early stage business, the Board is pleased with its progress to date. The business now has four senior billing consultants, three of which were hired in H1 2017. Gross revenues increased to GBP807,000 from GBP402,000 in H1 2016, resulting in a loss of GBP113,000 (Profit GBP13,000). This loss reflects an anticipated time lag from the hiring of new consultants to their generation of revenue.
Norman Broadbent Leadership Consulting ("NBLC")
NBLC has performed exceptionally well in H1 2017. Revenues increased to GBP662,000 from GBP199,000, resulting in a profit before tax of GBP365,000 (Loss GBP4,000). As announced on the 4th July 2017, NBLC won a significant contract with a FTSE 250 company to provide executive assessment, research and insight services over a three-year period (we expect the benefit of this to begin to materialise in Q4 2017).
NB Solutions ("NBS")
NBS has performed broadly in line with the previous reporting period. While revenues declined by 5% to GBP393,000 from GBP414,000 in H1 2016, resulting in a loss of GBP62,000 (Loss GBP32,000), the revenues for the 6 months to June 2017 were more than double the GBP163,000 earned in the second half of 2016, reflecting the impact of the restructuring that took place in June 2016 . Going forward, management focus for NBS is to increase headcount in order to grow the business to adequate scale.
Research & Insight ("R&I")
Although not a separate reporting line, we have continued to invest in R&I capabilities with strategic hiring. The R&I team now not only serves our own internal requirements, but provides complementary client services to our other businesses.
Financial Position
Equity shareholders' funds were GBP1,755,000 as at 30 June 2017 (GBP2,434,000 at 31 December 2016), with net current assets of GBP154,000 (GBP825,000 at 31 December 2016). Cash and cash equivalents at 30 June 2017 amounted to GBP304,000 (GBP963,000 at 31 December 2016), reflecting continued investment and restructuring in all businesses. The balance on the Group's revolving invoice discounting facility was GBP833,000 (GBP444,000 at 31 December 2016), reflecting a trade receivables balance of GBP1,104,000 (GBP634,000 at 31 December 2016).
Net cash outflow from operations was GBP1,024,000 (GBP797,000 at 31 December 2016) and net cash inflow from financing activities amounted to GBP304,000 (GBP1,404,000 at 31 December 2016).
Appointment of Gary Browning
The Board was very pleased to announce the appointment of Gary Browning as a Consultant and Strategic Adviser in August 2017. Gary's role will be to provide advice and support in the areas of strategic opportunities, market and competitive developments and to assist in the execution of Norman Broadbent's growth plan. Gary Browning's appointment brings the benefit of over 20 years' relevant sector experience to the Company. Gary joined Penna Consulting plc, the international human resources consulting group, in 2002. He was Chief Executive from 2005, when the business was capitalised at approximately GBP25.0m, until 2016 when the business was sold to ADECCO S.A. for GBP105m.
Board Changes
James Webber, Group CFO, informed the Board of his intention to resign from the Company in August. An offer has been extended to a potential candidate. On behalf of the Board I would also like to thank James for his significant contribution to Norman Broadbent over the last 4 years.
Outlook
The business is now positioned to move onto Phase Two of its business plan which aims to build on the work carried out to date, upscale all of our businesses and become self-funding and profitable. In order to fund Phase Two, the company has been in discussion with its existing institutional shareholders and a number of new investors and anticipates shortly announcing the details of a proposed placing to raise up to GBP1.23m.
Mike Brennan
Group CEO
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six month period ended 30 June 2017
Note Six months Re-Presented Year ended
ended 30
June 2017
(unaudited) Six months 31 December
ended 30 2016
June 2016
(unaudited) (audited)
GBP000 GBP000 GBP000
Continuing operations
Revenue 3,292 3,366 5,661
Cost of Sales (696) (424) (735)
-------------- -------------- --------------
Gross profit 2,596 2,942 4,926
Operating expenses (3,263) (3,004) (6,149)
Group operating profit / (loss) (667) (62) (1,223)
Net finance cost (12) (33) (54)
Exceptional Items - - -
Loss on disposal of investment - - -
-------------- -------------- --------------
Loss on ordinary activities
before income tax (679) (95) (1,277)
Income tax expense - - -
Loss from continuing operations (679) (95) (1,277)
============== ============== ==============
Discontinued operations
Profit/(Loss) from discontinued
operation 6 - (11) 279
Loss for the period (679) (106) (998)
============== ============== ==============
Other comprehensive income
Foreign currency translation - 2 -
differences - foreign operations
Total comprehensive loss (679) (104) (998)
============== ============== ==============
Loss attributable to:
Owners of the Company (651) (108) (1,304)
Non-controlling interests (28) 2 306
-------------- -------------- --------------
Loss for the period (679) (106) (998)
============== ============== ==============
Total comprehensive loss attributable
to:
Owners of the Company (651) (106) (1,304)
Non-controlling interests (28) 2 306
-------------- -------------- --------------
Total comprehensive loss for
the period (679) (104) (998)
============== ============== ==============
Loss per share 4
- Basic (1.56p) (0.60)p (5.36)p
- Diluted (1.56p) (0.60)p (5.36)p
Adjusted loss per share
- Basic (1.53p) (0.60)p (5.32)p
- Diluted (1.53p) (0.60)p (5.32)p
Loss per share - continuing
operations 4
- Basic (1.56p) (0.55)p (5.25)p
- Diluted (1.56p) (0.55)p (5.25)p
Adjusted loss per share -
continuing operations
- Basic (1.53p) (0.55)p (5.21)p
- Diluted (1.53p) (0.55)p (5.21)p
============== ============== ==============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2017
Note As at As at As at
30 June 30 June 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Non-current assets
Intangible assets 1,363 1,363 1,363
Property, plant and equipment 60 62 68
Trade and other receivables 201 - 234
Deferred tax 69 69 69
Total non-current assets 1,693 1,494 1,734
Current assets
Trade and other receivables 1,935 1,707 1,347
Cash and cash equivalents 304 263 963
------------ ------------ ------------
Total current assets 2,239 1,970 2,310
Total assets 3,932 3,464 4,044
------------ ------------ ------------
Current Liabilities
Trade and other payables (1,208) (1,243) (1,041)
Provisions 5 (125) - -
Bank overdraft and interest
bearing loans (833) (645) (444)
Total current liabilities (2,166) (1,888) (1,485)
Net current assets 73 82 825
Non-current liabilities
Provisions 5 - (125) (125)
Loan Note - (350) -
Total liabilities (2,166) (2,363) (1,610)
------------ ------------ ------------
Total assets less total liabilities 1,766 1,101 2,434
------------ ------------ ------------
Equity
Issued share capital 6,143 5,901 6,143
Share premium account 12,685 10,699 12,685
Retained earnings (17,034) (15,203) (16,394)
Equity attributable to owners
of the Company 1,794 1,397 2,434
Non-controlling interests (28) (296) -
Total equity 1,766 1,101 2,434
------------ ------------ ------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six month period ended 30 June 2017
Attributable to owners of
the Company
-----------------------------------------------
CONSOLIDATED GROUP
Share Capital Share Retained Total Non-controlling Total
Premium Earnings Equity interests Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January 2016 5,901 10,699 (15,101) 1,499 (294) 1,205
Loss for the period - - (104) (104) (2) (106)
Adjustment for discontinued - - - - - -
operation
Total other comprehensive
income - - 2 2 - 2
-------------- --------- ---------- -------- ---------------- --------
Total comprehensive income
for the period - - (102) (102) (2) (104)
-------------- --------- ---------- -------- ---------------- --------
Transactions with owners of the Company,
recognised directly in equity:
Issue of ordinary shares - - - - - -
Credit to equity for share - - - - - -
based payments
-------------- --------- ---------- -------- ---------------- --------
Total transactions with - - - - - -
owners of the Company, recognised
directly in equity
-------------- --------- ---------- -------- ---------------- --------
Balance at 30 June 2016 5,901 10,699 (15,203) 1,397 (296) 1,101
============== ========= ========== ======== ================ ========
Balance at 1 July 2016 5,901 10,699 (15,203) 1,397 (296) 1,101
Loss for the period - - (1,200) (1,200) 308 (892)
Total other comprehensive
income - - (2) (2) - (2)
-------------- --------- ---------- -------- ---------------- --------
Total comprehensive income
for the period - - (1,202) (1,202) 308 (894)
-------------- --------- ---------- -------- ---------------- --------
Transactions with owners
of the Company, recognised
directly in equity:
Issue of ordinary shares 242 1,986 - 2,228 - 2,228
Credit to equity for share
based payments - - 11 11 - 11
Total transactions with
owners of the Company, recognised
directly in equity 242 1,986 11 2,239 - 2,239
-------------- --------- ---------- -------- ---------------- --------
Changes in ownership interest
in subsidiaries
Disposal of non-controlling
interests with change of
control (12) (12)
-------------- --------- ---------- -------- ---------------- --------
Total transactions with
owners of the company 242 1,986 11 2,239 (12) 2,227
-------------- --------- ---------- -------- ---------------- --------
Balance at 31 December 2016 6,143 12,685 (16,394) 2,434 - 2,434
============== ========= ========== ======== ================ ========
Balance at 1 January 2017 6,143 12,685 (16,394) 2,434 - 2,434
Loss for the period - - (651) (651) (28) (679)
Total other comprehensive - - - - - -
income
-------------- --------- ---------- -------- ---------------- --------
Total comprehensive income
for the period - - (651) (651) (28) (679)
-------------- --------- ---------- -------- ---------------- --------
Transactions with owners
of the Company, recognised
directly in equity:
Credit to equity for share
based payments 11 11 - 11
-------------- --------- ---------- -------- ---------------- --------
Balance at 30 June 2017 6,143 12,685 (17,034) 1,794 (28) 1,766
============== ========= ========== ======== ================ ========
CONSOLIDATED STATEMENT OF CASH FLOW
For the six month period ended 30 June 2017
Notes Six months ended 30 June 2017 (unaudited) Six months ended 30 June 2016 (unaudited) Year ended 31 December 2016
(audited)
GBP000 GBP000 GBP000
Net cash used in operating activities (i) (1,024) 119 (797)
Cash flows from investing activities and servicing of finance
Net finance cost (12) (33) (54)
Payments to acquire tangible fixed assets (11) - (24)
Disposal of discontinued operation, net of cash disposed of 6 - - (15)
Net cash used in investing activities (23) (33) (93)
------------------------------------------ ------------------------------------------ ---------------------------------
Cash flows from financing activities
Repayment of borrowings - - (350)
Net cash inflows from equity placing - - 2,228
(Decrease)/increase in invoice discounting 388 (273) (474)
Net cash from financing activities 388 (273) 1,404
------------------------------------------ ------------------------------------------ ---------------------------------
Net (decrease)/increase in cash and cash equivalents (659) (187) 514
Net cash and cash equivalents at beginning of period 963 448 448
Effects of exchange rate changes on cash balances held in foreign
currencies - 2 1
------------------------------------------ ------------------------------------------ ---------------------------------
Net cash and cash equivalents at end of period 304 263 963
========================================== ========================================== =================================
Analysis of net funds
Cash and cash equivalents 304 263 963
Borrowings due within one year (832) (645) (444)
Net funds (528) (382) 519
========================================== ========================================== =================================
Note (i)
Reconciliation of operating profit to net cash from operating activities Six months ended 30 June 2017 (unaudited) Six months ended 30 June 2016 (unaudited) Year ended 31 December 2016
(audited)
------------------------------------------ ------------------------------------------ ---------------------------------
Operating loss from continued operations (667) (62) (914)
Operating loss from discontinued operations - (11) (30)
Depreciation/ impairment of property, plant and equipment 19 20 38
Share based payment charge 11 - 11
Increase in trade and other receivables (555) 465 871
Increase/(decrease) in trade and other payables 168 (293) (464)
Profit on sale of investment - - (309)
------------------------------------------ ------------------------------------------ ---------------------------------
Net cash used in operating activities (1,024) 119 (797)
========================================== ========================================== =================================
NOTES TO THE FINACIAL STATEMENTS
1. ACCOUNTING POLICIES 1.1 Basis of preparation
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2016, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those statements was unqualified.
The interim financial information for the six months ended 30 June 2017, has been prepared in accordance with the AIM Rules for Companies. The Group has not elected to apply IAS 34 'Interim Financial Reporting'. The principal accounting policies used in preparing the interim results are those the Group expects to apply in its financial statements for the year ending 31 December 2017 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2016. The interim financial statements have not been audited.
1.2 Basis of consolidation and business combinations
Group financial statements consolidate those of the Company and of the following subsidiary undertakings:
Principal Group Country of incorporation or
investments: registration and operation Description and proportion
of shares held by the
Principal activities Company
--------------------------- ---------------------------- ---------------------------- ---------------------------
Norman Broadbent England and Wales Executive Search 100 per cent ordinary
Executive Search Ltd shares
Norman Broadbent Overseas England and Wales Executive Search 100 per cent ordinary
Ltd shares
Norman Broadbent England and Wales Assessment, Leadership 100 per cent ordinary
Leadership Consulting Ltd Consulting and Talent Mgmt. shares
Norman Broadbent England and Wales Executive Recruitment 100 per cent ordinary
Solutions Ltd (formerly Solutions shares
AGP NB Ltd )
Norman Broadbent Interim England and Wales Senior Interim Management 100 per cent ordinary
Management Ltd shares
Norman Broadbent Republic of Ireland Dormant 100 per cent ordinary
(Ireland) Ltd * shares
Bancomm Ltd England and Wales Dormant 100 per cent ordinary
shares
* 100 per cent of the issued share capital of this company is owned by Norman Broadbent Overseas Ltd.
2. copies of the unaudited interim report
Copies of this report are available on request from the Company's registered office at 12 St James's Square, London, SW1Y 4LB and are also available on the Company's website at www.normanbroadbent.com.
3. SEGMENTAL ANALYSIS
Management has determined the operating segments based on the reports reviewed regularly by the Board for use in deciding how to allocate resources and in assessing performance. The Board considers Group operations from both a class of business and geographic perspective.
Each class of business derives its revenues from the supply of a particular recruitment related service, from retained executive search through to executive assessment and coaching. Business segment results are reviewed primarily to operating profit level, which includes employee costs, marketing, office and accommodation costs and appropriate recharges for management time.
Group revenues are primarily driven from UK operations, however when revenue is derived from overseas business the results are presented to the Board by geographic region to identify potential areas for growth or those posing potential risks to the Group.
i) Class of Business:
The analysis by class of business of the Group's turnover and profit before taxation is set out below:
BUSINESS SEGMENTS
Six months Disc. Un
ended 30 June NBES NBLC NBS NBIM Operation allocated Total
2017 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------- --------- --------- --------- --------- ------------ ------------ ----------
Revenue 1,430 662 393 807 - - 3,292
Cost of sales (11) (193) (20) (472) - - (696)
-------------------- --------- --------- --------- --------- ------------ ------------ ----------
Gross profit 1,419 469 373 335 - - 2,596
- -
Operating expenses (1,963) (102) (432) (444) - (303) (3,244)
Other operating - - - - - - -
income
Finance costs (6) (2) (1) (3) - - (12)
Depreciation
and amort. (16) (2) (1) - - (19)
Restructuring
costs - - - - - - -
Exceptional
items - - - - - - -
Loss on disposal - - - - - - -
of investment
Profit/(Loss)
before tax (566) 365 (62) (113) - (303) (679)
-------------------- --------- --------- --------- --------- ------------ ------------ ----------
BUSINESS SEGMENTS
Six months Disc. Un
ended 30 June NBES NBLC NBS NBIM Operation allocated Total
2016 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------- --------- --------- --------- --------- ------------ ------------ ----------
Revenue 2,351 199 414 402 273 - 3,639
Cost of sales (55) (36) (2) (330) (1) - (424)
-------------------- --------- --------- --------- --------- ------------ ------------ ----------
Gross profit 2,296 163 412 72 272 - 3,215
Operating expenses (1,943) (167) (533) (57) (282) (287) (3,269)
Other operating - - - - - - -
income
Finance costs (10) - (2) (2) - (19) (33)
Depreciation
and amort. (14) - (3) - (2) - (19)
Restructuring - - - - - - -
costs
Exceptional - - - - - - -
items
Loss on disposal - - - - - - -
of investment
Profit/(Loss)
before tax 329 (4) (126) 13 (12) (306) (106)
-------------------- --------- --------- --------- --------- ------------ ------------ ----------
BUSINESS SEGMENTS
Year ended Disc. Un
31 December NBES NBLC NBS NBIM Operation allocated Total
2016 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------- --------- --------- --------- --------- ------------ ------------ ----------
Revenue 4,005 293 577 786 470 - 6,131
Cost of sales (92) (41) (7) (595) - - (735)
-------------------- --------- --------- --------- --------- ------------ ------------ ----------
Gross profit 3,913 252 570 191 470 - 5,396
Operating expenses (4,195) (308) (918) (127) (497) (566) (6,611)
Other operating - - - - - - -
income
Finance costs (17) - (3) (4) - (30) (54)
Depreciation
and amort. (29) - (6) - (3) - (38)
Restructuring - - - - - - -
costs
Exceptional - - - - - - -
items
Profit on disposal
of investment - - - - 309 - 309
Profit/(Loss)
before tax (328) (56) (357) 60 279 (596) (998)
-------------------- --------- --------- --------- --------- ------------ ------------ ----------
ii) Revenue and gross profit by geography:
Revenue GBP'000 Gross Profit GBP'000
Six Months Ended Year Ended Six Months Ended Year Ended
30 June 30 June 31 Dec 30 June 30 June 31 Dec
2017 2016 2016 2017 2016 2016
---------------- --------- -------- ----------- --------- -------- -----------
United Kingdom 3,292 3,605 6,030 2,596 3,180 5,295
Rest of
the World - 34 101 - 34 101
Total 3,292 3,639 6,131 2,596 3,214 5,396
----------------- --------- -------- ----------- --------- -------- -----------
4. earnings PER ORDINARY SHARE
i) Basic earnings per share:
This is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period:
Six months Year ended
ended 31 December
Six months ended 30 June 2017 30 June 2016 2016
(unaudited) (unaudited) (audited)
------------------------------ ---------------------- ---------------------------
(Loss)/profit attributable to
shareholders (651,000) (106,000) (1,304,000)
------------------------------ ---------------------- ---------------------------
Weighted average number of
ordinary shares 41,633,320 17,416,487 24,316,626
============================== ====================== ===========================
ii) Diluted earnings per share:
This is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The company has issued share options which are potentially dilutive. A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the company's shares) based on the monetary value of the subscription rights attached to the outstanding options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
Six months ended 30 June Six months ended 30 June Year ended 31 December
2017 2016 2016
(unaudited) (unaudited) (audited)
--------------------------- --------------------------- ---------------------------
(Loss)/profit attributable
to shareholders (651,000) (106,000) (1,304,00)
--------------------------- --------------------------- ---------------------------
Weighted average no. of
ordinary shares 41,633,320 17,416,487 24,316,626
- assumed conversion of
share options - - -
Weighted average number of
ordinary shares for diluted
earnings per share 41,633,320 17,416,487 24,316,626
=========================== =========================== ===========================
iii) Adjusted earnings per share
Adjusted earnings per share has also been calculated in addition to the basic and diluted earnings per share and is based on earnings adjusted to eliminate charges for share based payments. It has been calculated to allow shareholders to gain a clearer understanding of the trading performance of the Group.
Six months ended 30 June Six months ended 30 June 2016 Year ended 31 December 2016
2017
Basic Diluted Basic Diluted Basic Diluted
pence per pence per pence per pence per pence per pence per
share share share share share share
GBP000 GBP000 GBP000
-------- ---------- --------- -------- ---------- ---------- -------- ---------- ----------
Basic earnings
(Loss)/Profit
after tax (651) (1.56) (1.56) (106) (0.60) (0.60) (1,304) (5.36) (5.36)
-------- ---------- --------- -------- ---------- ---------- -------- ---------- ----------
Adjustment
Share based
payment
charge 11 0.03 0.03 - - - 11 0.04 0.04
Adjusted
earnings (640) (1.53) (1.53) (106) (0.60) (0.60) (1,293) (5.32) (5.32)
5. PROVISIONS
Six months ended 30 June Six months ended 30 June Year ended 31 December 2016
2017 2016 GBP000
GBP000 GBP000
---------------------------- ---------------------------- ---------------------------
Balance at beginning of
period 125 125 125
Provisions made during the - - -
period
Balance at end of period 125 125 125
============================ ============================ ===========================
Non-current 125 125
Current 125 - -
---------------------------- ---------------------------- ---------------------------
125 125 125
============================ ============================ ===========================
On the 6 March 2013 the Company signed a ten year lease with a five year break for its main office in London. On signing the new lease the Company inherited the office fit-out from the previous tenant. Under the terms of the new lease the Company is obliged to return vacant possession to the landlord with the office returned to its original state. The Company had the present cost of the future works required to return the office to its original state valued by an independent firm of advisors and this liability of GBP125,000 is provided for in the financial period. In July 2017, the Company exercised the lease break option.
6. DISCONTINUED OPERATION
On 31 December 2016, the Group sold its 51% stake in Social Media Search Limited. The comparative consolidated statement of comprehensive income has been re-presented to show the discontinued operation separately from continued operations. Under the terms of the Sale and Purchase Agreement ("SPA"), Norman Broadbent will receive a cash consideration of GBP325,000 for Social Media Search. As at the end of June, the company has received GBP32,502 which equates to 6 payments of GBP5,417.
Six months Six months Year ended
ended 30 ended 30
June 2017 June 2016
(unaudited) (unaudited) 31 December
2016
(audited)
GBP000 GBP000 GBP000
Results from discontinued
operation
Revenue - 272 470
Operating Expenses - (283) (500)
-------------- ------------- -------------
Results from operating activities - (11) (30)
============== ============= =============
Exceptional items - - 655
Tax - - -
Results from operating activities,
net of tax - (11) 625
============== ============= =============
Minority Interest - 2 (306)
(Loss)/Profit for the period - (9) 319
============== ============= =============
The profit in 2016 from discontinued operations disclosed within the Consolidated Income Statement of GBP278,900 consists of the operating loss of GBP(30,000) and the profit on disposal of the subsidiary of GBP309,900. The exceptional item, relating to the write off of intercompany loan accounts, has been eliminated on consolidation within the Consolidated Income Statement.
7. RELATED PARTY TRANSACTIONS
i) Purchase of services: Six months ended 30 June Six months ended 30 June Year ended 31 December 2016
2017 2016 GBP000
GBP000 GBP000
---------------------------- ---------------------------- ---------------------------
Brian Stephens & Company
Limited 12 12 24
Connecting Corporates
Limited - 7 25
Total 12 19 49
============================ ============================ ===========================
Brian Stephens & Company Limited invoiced the Group for the directors' fees and corporate finance services of B Stephens (GBP10,000) and business related travel costs of GBP2,000. B Stephens is a director of Brian Stephens & Company Limited.
During the prior period the Group acquired research services from Connecting Corporates Limited of GBP7,000. The Group owned a 51 per cent stake in Connecting Corporates Limited.
All related party expenditure took place via "arms-length" transactions.
ii) Period-end payables Six months ended 30 June Six months ended 30 June Year ended 31 December 2016
arising from the purchases 2017 2016 GBP000
of services: GBP000 GBP000
---------------------------- ---------------------------- ---------------------------
Brian Stephens & Company
Limited 2 2 4
Connecting Corporates
Limited - 30 -
Total 2 32 4
============================ ============================ ===========================
The payables to related parties arise from purchase transactions and are due one month after date of purchase. The payables bear no interest.
This information is provided by RNS
The company news service from the London Stock Exchange
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September 29, 2017 02:02 ET (06:02 GMT)
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