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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Office2Off. | LSE:OFF | London | Ordinary Share | GB00B01GL703 | 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% | 50.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMOFF
RNS Number : 1682Q
Office2office PLC
28 August 2014
office2office plc
Half Yearly Results
office2office plc (o2o, the Company or the Group), a leading provider of office supplies and business solutions, announces its half yearly results for the six month period ended 30 June 2014 (the period).
Operational highlights
-- Revenue in Business Critical Services fell marginally by 1.4% to GBP42.8m (2013: GBP43.4m) and segmental adjusted EBITA (being underlying profit before income tax and before charging Group administration and finance costs as detailed was stable at GBP3.7m (2013: GBP3.8m)
-- Managed Procurement revenue decreased 5.2% to GBP71.8m (2013: GBP75.7m), and adjusted EBITA declined to GBP3.6m (2013: GBP4.8m).
Financial performance
-- Group revenue was down 4% to GBP114.6m (2013: GBP119.2m)
-- Underlying profit before tax of GBP1.6m (2013: GBP2.0m)
-- Profit before tax was GBP0.1m (2013: GBP1.2m) reflecting a higher level of non-recurring charges GBP0.8m (2013: GBP0.3m)
-- Underlying earnings per share were 3.3p (2013: 3.9p), and basic earnings per share were 0.0p (2013: 2.3p)
-- Continued cash generation progress of GBP1.6m (2013: GBP6.5m)
-- Net debt managed down to GBP20.4m (2013: GBP23.3m)
-- No interim dividend recommended (2013: nil)
Jim Cohen, Chairman of o2o, said,
"On 21 August the Board recommended shareholders to accept an offer from EVO Business Supplies Limited of 51p per share. We did so in the full knowledge that only a week later we would be announcing results for the first half of 2014 that are on track for the year as a whole and in line with the market's and our own expectations, and with net debt reduced further since the year end."
Further enquiries:
office2office
Simon Moate, CEO 01603 691 102
Hugh Cawley, Group Finance Director
MHP Communications
Reg Hoare/ Katie Hunt 020 3128 8793 / 8794
CHAIRMAN'S STATEMENT
On 21 August your Board recommended shareholders to accept an offer from EVO Business Supplies Limited (EVO) of 51p per share. We did so in the full knowledge that only a week later we would be announcing results for the first half of 2014 that are on track for the year as a whole and in line with the market's and our own expectations, and with net debt reduced further since the year end.
In recommending the offer, the Board took into account a number of factors including the structural change and need for consolidation in the Group's principal, but declining, business supplies sector; current trading and prospects of the Group; the Group's financial position and the feasibility of other strategic options.
Our current on-track performance does not mask the fact that the trading environment for Managed Procurement is challenging. Customer buying habits have changed, with a focus on making smaller purchasing orders on a more frequent basis, buying lower cost products and reducing their direct costs generally. Your Board believes this is a permanent shift in buying behaviour, which has increased the Group's cost-to-serve and negatively impacted the Group's financial performance. We have therefore implemented a strategy to improve the performance of Managed Procurement by cutting costs, reducing debt and remodelling the business through changes to its logistics platform.
The Board believes there is also a need for industry consolidation, requiring a material commitment of resources, to reduce costs and duplication in the business supplies sector. Hence, in combination with its operational initiatives, the Board decided to explore a number of consolidation opportunities. We have concluded that combining office2office with another business in the office supplies industry is the best way of creating value for our shareholders, and that this can best be achieved by EVO acquiring office2office.
The Group has also in recent years focused on expanding its Business Critical Services activity, a process which the Board believes has been successful to date. However, the Group does not have sufficient funds to invest further in this activity in order to fulfil its growth potential while at the same time restructuring the Group's role in the declining business supplies sector.
The Group is currently in discussions to refinance its GBP12.5 million term loan, GBP3 million revolving credit facilities and GBP30 million asset-backed lending facility, which are all committed to June 2015. Whilst these discussions are constructive, the terms of such a refinancing and when it would be completed depend in part on the Group's finalising its strategic plans to address change in the business supplies sector.
At this stage, EVO's offer remains subject to Competition Markets Authority clearance as well as shareholder approval. Management and the Board remain committed to driving the business forward, pending approval of EVO's offer.
With our six month average share price pre-announcement of 25.88p the offer price of 51p represents a premium of 97.1%.
Results
In the six months to 30 June 2014, Group revenue was GBP114.6m (2013: GBP119.2m), underlying profit before tax was GBP1.6m (2013: GBP2.0m), non-recurring costs were GBP0.8m (2013: GBP0.3m) and profit before tax was GBP0.1m (2013: GBP1.2m). Underlying earnings per share were 3.3p (2013: 3.9p) and basic earnings per share were 0.0p (2013: 2.3p).
The Group has continued to reduce its net borrowings, which at 30 June 2014 stood at GBP20.4m (2013:GBP23.3m). In the first half of this year cash generation continued the progress made last year at GBP1.6m (2013 GBP6.5m).
Segmental review
Managed Procurement
Managed Procurement revenue decreased 5.2% to GBP71.8m (2013: GBP75.7m), and adjusted EBITA (being underlying profit before income tax and before charging Group administration and finance costs as detailed in note 6) declined to GBP3.6m (2013: GBP4.8m).
Business Critical Services
Revenue in Business Critical Services decreased 1.4% to GBP42.8m (2013: GBP43.4m) and segmental adjusted EBITA (as discussed above and in note 6) was stable at GBP3.7m (2013: GBP3.8m).
Dividend policy
The Board is not recommending an interim dividend (2013: nil).
Employees
I would like to take this opportunity to thank the many employees who have helped contribute to the Group's success. The Board recognises that a change of owner and industry consolidation will introduce fresh challenges. Consolidation is, however, inevitable, and a combined group will be better able to stand up to the market than we could alone.
As mentioned in our 2013 Annual Report & Accounts, the half yearly financial report will be published on the o2o website and hard copies will be provided only on request.
J L Cohen
Chairman
28 August 2014
UNAUDITED CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2014
Unaudited Unaudited Audited six months six months year ended ended ended 30 Jun 30 Jun 13 31 Dec 13 14 Note GBP000 GBP000 GBP000 Revenue 6 114,562 119,174 231,887 Cost of sales (85,416) (89,674) (173,427) --------------------------------- ---- ----------- ----------- ----------- Gross profit 29,146 29,500 58,460 Distribution costs (11,343) (11,732) (23,367) Administrative expenses (16,858) (15,938) (31,863) Other operating income 252 564 925 --------------------------------- ---- ----------- ----------- ----------- Operating profit 1,197 2,394 4,155 Finance costs (1,111) (1,227) (2,332) Profit before income tax 6 86 1,167 1,823 Analysed as: Underlying profit before income tax (#) 1,608 1,969 4,192 Share option credit /(expense) 94 167 (48) Non-recurring costs 8 (757) (333) (834) Amortisation of intangibles (859) (636) (1,487) Profit before income tax 86 1,167 1,823 ---- ----------- ----------- Income tax expense 9 (79) (327) (503) Profit for the period 7 840 1,320 Earnings per Ordinary share attributable to owners of the Company: Basic 10 0.0p 2.3p 3.6p Diluted 10 0.0p 2.3p 3.6p
(#) Profit before income tax, non-recurring costs, amortisation of intangibles and share option credit/(expense).
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2014
Unaudited Unaudited Audited six months six months year ended ended ended 30 Jun 30 Jun 13 31 Dec 13 14 GBP000 GBP000 GBP000 Profit for the period 7 840 1,320 Other comprehensive income Items that will never be reclassified to profit or loss: Remeasurements of the defined benefit liability (191) (368) (1,147) Tax on items that will never be reclassified to profit or loss 38 73 206 Items that are or may be reclassified subsequently to profit or loss: Currency translation differences (68) 85 25 ----------------------------------------- ----------- ----------- ----------- Total comprehensive income for the period (214) 630 404 ----------------------------------------- ----------- ----------- -----------
UNAUDITED CONSOLIDATED BALANCE SHEET
as at 30 June 2014
Unaudited Unaudited Audited 30 Jun 14 30 Jun 13 31 Dec 13 GBP000 GBP000 GBP000 ------------------------------- ---------- ---------- ---------- Assets Non-current assets Intangible assets 56,712 57,429 57,561 Property, plant and equipment 1,866 3,233 2,232 Deferred income tax asset 1,130 1,012 1,135 59,708 61,674 60,928 ------------------------------- ---------- ---------- ---------- Current assets Inventories 8,373 8,594 8,637 Trade and other receivables 33,152 36,550 34,985 Current income tax asset 731 - 550 Cash and cash equivalents 2,441 5,267 1,906 44,697 50,411 46,078 ------------------------------- ---------- ---------- ---------- Total assets 104,405 112,085 107,006 ------------------------------- ---------- ---------- ---------- Equity Capital and reserves attributable to owners of the Company Ordinary shares 363 363 363 Share premium account 5,009 5,009 5,009 Other reserves (2) 126 66 Retained earnings 8,895 11,807 9,092 Total equity 14,265 17,305 14,530 ------------------------------- ---------- ---------- ---------- Liabilities Non-current liabilities Borrowings 54 9,883 10,943 Deferred income tax liability 735 1,018 830 Provisions 289 496 432 Retirement benefit liability 1,722 1,004 1,646 2,800 12,401 13,851 ------------------------------- ---------- ---------- ---------- Current liabilities Trade and other payables 64,279 62,213 65,741 Borrowings 22,779 18,636 12,733 Provisions 282 62 151 Proposed dividends - 1,302 - Current income tax liabilities - 166 - 87,340 82,379 78,625 ------------------------------- ---------- ---------- ---------- Total liabilities 90,140 94,780 92,476 ------------------------------- ---------- ---------- ---------- Total equity and liabilities 104,405 112,085 107,006 ------------------------------- ---------- ---------- ----------
The half yearly financial report was approved by the Board of Directors on 28 August 2014.
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Unaudited Ordinary premium Other Retained total shares account reserves earnings equity Note GBP000 GBP000 GBP000 GBP000 GBP000 ------------------------------------- ---- ---------- -------- ---------- ---------- --------- Balance at 1 January 2013 363 5,009 41 12,883 18,296 Profit for the period - - - 840 840 Other comprehensive income - - 85 (295) (210) ------------------------------------- ---- ---------- -------- ---------- ---------- --------- Total comprehensive income for the period ended 30 June 2013 - - 85 545 630 Net expenditure recognised directly in equity Employee share options: * value of employee services - - - (103) (103) * deferred tax on share options - - - (216) (216) Dividends and other appropriations: * Ordinary shares 12 - - - (1,302) (1,302) - - 85 (1,076) (991) Balance at 30 June 2013 363 5,009 126 11,807 17,305 ------------------------------------- ---- ---------- -------- ---------- ---------- ---------
for the six months ended 30 June 2014
Share Unaudited Ordinary premium Other Retained total shares account reserves earnings equity Note GBP000 GBP000 GBP000 GBP000 GBP000 ------------------------------------- ----- ---------- -------- ---------- ---------- --------- Balance at 1 January 2014 363 5,009 66 9,092 14,530 -------------------------------------------- ---------- -------- ---------- ---------- --------- Profit for the period - - - 7 7 Other comprehensive income - - (68) (153) (221) -------------------------------------------- ---------- -------- ---------- ---------- --------- Total comprehensive income for the period ended 30 June 2014 - - (68) (146) (214) Net expenditure recognised directly in equity Employee share options: * value of employee services - - - (79) (79) * deferred tax on share options - - - 28 28 - - (68) (197) (265) Balance at 30 June 2014 363 5,009 (2) 8,895 14,265 -------------------------------------------- ---------- -------- ---------- ---------- ---------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended 30 June 2014
Unaudited Unaudited Audited six months six months year ended ended ended 30 Jun 14 30 Jun 31 Dec 13 13 Note GBP000 GBP000 GBP000 ----------------------------------------- ---- ------------- ----------- -------- Cash flows from operating activities Cash generated from operations 11 2,808 7,759 12,966 Interest paid (948) (1,253) (2,522) Income tax received/(paid) (284) 2 (324) Net cash generated from operating activities 1,576 6,508 10,120 ----------------------------------------------- ------------- ----------- -------- Cash flows from investing activities Purchase of property, plant and equipment (25) (499) (307) Capitalised software (10) (187) (1,170) Net cash used in investing activities (35) (686) (1,477) ----------------------------------------- ---- ------------- ----------- -------- Cash flows from financing activities Finance lease principal payments (12) (96) (143) Repayment of borrowings - (3,000) (5,000) Dividends paid to Company's shareholders 12 - - (1,302) Net cash used in financing activities (12) (3,096) (6,445) ----------------------------------------------- ------------- ----------- -------- Net increase in cash and cash equivalents 1,529 2,726 2,198 Cash, cash equivalents and bank overdrafts at 1 January (9,546) (11,744) (11,744) Cash, cash equivalents and bank overdrafts at period end (8,017) (9,018) (9,546) ----------------------------------------------------- ------- ----------- --------
Net debt at period end comprises:
GBP000 GBP000 GBP000 -------------------------------- -------- -------- -------- Cash, cash equivalents and bank overdrafts (8,017) (9,018) (9,546) Finance leases (77) (136) (89) Bank loans (12,298) (14,098) (12,135) Net debt at period end (20,392) (23,252) (21,770) -------------------------------- -------- -------- --------
NOTES TO THE INTERIM FINANCIAL INFORMATION
for the six months ended 30 June 2014
1. General information
office2office plc (the Company) and its subsidiaries (the Group) provide managed procurement and business critical services. The Group operates in the United Kingdom and Republic of Ireland. The Company is a public limited company incorporated and domiciled in the United Kingdom and its shares are listed on the London Stock Exchange. The address of its registered office is St Crispins, Duke Street, Norwich, NR3 1PD.
The half yearly financial report does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2013 were approved by the Board of Directors on 2 April 2014 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.
The half yearly financial report has been reviewed, not audited and was approved for issue by the Directors on 28 August 2014.
2. Basis of preparation
This half yearly financial report for the six months ended 30 June 2014 has been prepared in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority and with IAS 34, 'Interim financial reporting' as adopted by the European Union. The half yearly financial report should be read in conjunction with the annual report and financial statements for the year ended 31 December 2013, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.
The Directors, in their detailed consideration of going concern, have reviewed the Group's future cash forecasts, covenant forecasts and revenue projections, which they believe are based on prudent market data and past experience, and believe based on these forecasts and projections, underpinned by the continuing support of RBS, that it is appropriate to prepare the financial statements of the Group on a going concern basis.
The announcement dated 21 August, which outlined an agreed offer for the entire issued share capital of the Group, does not, in the opinion of the Directors influence the Group's ability to continue as a going concern. The Board has been exploring strategic options for the Group and in this context it was not felt appropriate, at this time, to put in place long term funding that would prove costly and potentially ultimately unnecessary in light of that announcement. As a consequence the Group has not currently agreed refinancing arrangements with the Group's bankers for the period beyond June 2015, when, in the absence of such agreement, the current facilities would be due to expire.
Since the April 2008 refinancing, RBS, as sole providers to the Group, have demonstrated their continuing support of the business and, indeed, they have confirmed in writing that it is their intention to continue their constructive dialogue with the Board in the event that the sale in contemplation were not to complete.
Consequently, the Directors have a reasonable expectation that the Group will continue to comply with the covenants in their facilities and they have adequate resources to meet their liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
3. Accounting policies
The accounting policies applied are consistent with those of the annual report and financial statements for the year ended 31 December 2013, as described in the Annual Report and Accounts.
4. Financial assets and liabilities
Financial assets and financial liabilities are recognised on the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument.
The Group classifies its financial assets and liabilities in the following categories: loans and receivables, and other financial liabilities. The classification depends on the purpose for which the financial assets or liabilities were acquired. Management determines the classification of its financial assets and liabilities at initial recognition. The classification of financial liabilities is determined in accordance with IFRS 7, 'Financial instruments: Disclosures', taking account of the repayment profile of the liability. For those with fixed or determinable payment profiles the amounts are recognised as either current liabilities or, where amounts are not due for more than 12 months after the reporting period, as non-current liabilities.
Trade receivables: Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments (more than 60 days overdue) are considered indicators that the trade receivable is impaired. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows. The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in the income statement within revenue. When a trade receivable is uncollectable, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against revenue in the income statement.
Borrowings: Borrowings are recognised initially at fair value net of transaction costs. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.
Trade payables:Trade payables are not interest bearing and are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
Equity instruments:Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. Where any Group company purchases the Company's equity share capital (treasury shares), the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company's owners until the shares are cancelled or reissued. Where such shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company's owners.
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired.
The above financial assets and liabilities are grouped as follows:
-- Cash and cash equivalents and trade and other receivables (excluding prepayments) are classified as loans and receivables for the purpose of IFRS 7, 'Financial instruments: Disclosures'.
-- Borrowings, finance leases and trade and other payables (excluding statutory liabilities) are classified as other financial liabilities at amortised cost for the purpose of IFRS 7, 'Financial instruments: Disclosures'.
5. Principal risks and uncertainties
The principal risks and uncertainties facing the Group arise from: the impact of the economic downturn on customers, leading to reduced demand, and on suppliers, leading to sourcing issues; the impact of operating in a highly competitive market leading to the loss of a large customer or a reduction in gross margins; an interruption of the Group's operations or IT services; exposure to product cost increases and a variety of financial risks. A full review of these is included in the 2013 Annual Report. These remain unchanged but continue to be regularly monitored to ensure that any mitigating actions are prompt and appropriate.
6. Segmental information
IFRS 8, 'Operating Segments', requires a 'management approach', under which segment information is presented on the same basis as that used for internal reporting purposes. The operating segments are identified on the basis of internal reports regularly reviewed by the Board of Directors, the Board of Directors being the chief operating decision-maker, in order to allocate resources to the segments and to assess their respective performance.
The Board considers the business from a service perspective. The Group is organised into two main business segments:
-- Managed Procurement; and -- Business Critical Services.
The business units of each reportable segment, Banner Business Services and Truline in respect of Managed Procurement and Banner Managed Communication and Banner Document Services in respect of Business Critical Services, do not qualify as reportable segments as decisions about the allocation of resources and the assessment of performance are not made at this level.
The Board assesses the performance of the operating segments based on a measure of adjusted earnings before interest, income tax and amortisation (adjusted EBITA). This measurement basis excludes the effects of non-recurring expenditure from the operating segments, such as restructuring costs. Other information provided to the Board, except as noted below, is measured in a manner consistent with that in the financial statements.
Business Managed Critical Procurement Services Total GBP000 GBP000 GBP000 Six months ended 30 June 2014 Revenue 71,762 42,800 114,562 Adjusted EBITA 3,567 3,749 7,316 --------------------------- ------------- --------- ------- Six months ended 30 June 2013 Revenue 75,738 43,436 119,174 Adjusted EBITA 4,813 3,840 8,653 --------------------------- ------------- --------- ------- Total assets 30 June 2014 50,514 53,621 104,135 30 June 2013 55,148 56,615 111,763 --------------------------- ------------- --------- -------
A reconciliation of total adjusted EBITA to profit before income tax is provided as follows:
Six months Six months ended ended 30 Jun 30 Jun 14 13 GBP000 GBP000 Adjusted EBITA for reportable segments 7,316 8,653 Group costs (4,597) (5,457) --------------------------------------- ---------- ---------- Underlying profit before income tax and finance costs 2,719 3,196 Finance costs (1,111) (1,227) --------------------------------------- ---------- ---------- Underlying profit before income tax 1,608 1,969 Share option expense 94 167 Non-recurring costs (757) (333) Amortisation (859) (636) --------------------------------------- ---------- ---------- Profit before income tax 86 1,167 --------------------------------------- ---------- ----------
Reportable segments' assets are reconciled to total assets as follows:
30 June 30 June 2014 2013 GBP000 GBP000 Total segment assets 104,135 111,763 Unallocated: Cash and cash equivalents 5 Short leasehold land and buildings - head office 265 322 ------------------------------------------ ------- ------- Total assets per balance sheet 104,405 112,085 ------------------------------------------ ------- ------- 7. Seasonality
The Group operates in markets where no significant seasonal or cyclical variations in sales are experienced during the financial year.
8. Non-recurring costs
The amounts recognised as non-recurring costs are as follows:
Six months Six months Year ended ended ended 30 Jun 30 Jun 31 Dec 14 13 13 GBP000 GBP000 GBP000 Compensation payments 725 333 589 Business review costs 32 - 245 ----------------------- ----------- ----------- --------- 757 333 834 ----------------------- ----------- ----------- ---------
Compensation payments relate to amounts paid to ex-employees of Group companies. Business review costs relate to costs incurred by the Group in relation to management's commitment to improve operational efficiency.
9. Income taxes
Income tax expense is recognised based on management's best estimate of the average annual income tax rate expected for the full financial year, as adjusted to reflect estimated disallowable expenses. The estimated average annual tax rate used for the six month period to 30 June 2014 of 91.9% (30 June 2013: 28.0%) is based on the prevailing current tax rate of 21.5% (six months ended 30 June 2013: 23.5%) as adjusted for the estimated impact of expenses permanently disallowable for income tax and other permanent differences.
10. Earnings per share
(a) Basic
Basic earnings per share is calculated by dividing profit attributable to owners of the Company by the weighted average number of Ordinary shares in issue during the period, excluding Ordinary shares held by the employee benefit trust which do not qualify for receipt of dividends.
Six months Six months Year ended ended ended 30 Jun 30 Jun 31 Dec 14 13 13 Profit attributable to equity holders of the Company (GBP000) 7 840 1,320 Weighted average number of Ordinary shares in issue (thousands) 36,171 36,171 36,171 Basic earnings per share (pence per share) 0.0 2.3 3.6 ------------------------------------- ----------- ----------- --------
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of Ordinary shares outstanding to assume conversion of all dilutive potential Ordinary shares. The Company has one category of dilutive potential Ordinary shares, being share options. For share options, a calculation is undertaken to determine the number of shares that could have been acquired at fair value (determined as the average market share price of the Company's shares during the period) based on the monetary value of the subscription rights attached to outstanding share 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 Six months Year ended ended ended 30 Jun 30 Jun 31 Dec 14 13 13 Profit attributable to equity holders of the Company (GBP000) 7 840 1,320 ---------------------------------------- ----------- ----------- -------- Weighted average number of Ordinary shares in issue (thousands) 36,171 36,171 36,171 Adjusted for share options (thousands) - - - Weighted average number of Ordinary shares for diluted earnings per share (thousands) 36,171 36,171 36,171 Diluted earnings per share (pence per share) 0.0 2.3 3.6 ---------------------------------------- ----------- ----------- --------
(c) Underlying earnings per share
Underlying earnings per share is calculated by dividing profit on ordinary activities after tax (before the after tax effect of non-recurring costs, share option expense and amortisation of intangibles) by the weighted average number of Ordinary shares in issue during the period excluding Ordinary shares held by the employee benefit trust.
Six months Six months Year ended ended ended 30 Jun 30 Jun 31 Dec 14 13 13 Profit attributable to owners of the Company (GBP000) 7 840 1,320 ------------------------------------- ----------- ----------- -------- Non-recurring costs (net of tax GBP000) 594 255 1,141 Share option (credit)/expense (GBP000) (94) (167) 48 Amortisation of intangibles (net of tax GBP000) 674 487 640 Underlying profit attributable to owners of the Company (GBP000) 1,181 1,415 3,149 ------------------------------------- ----------- ----------- -------- Weighted average number of Ordinary shares in issue (thousands) 36,171 36,171 36,171 Underlying earnings per share (pence per share) 3.3 3.9 8.7 ------------------------------------- ----------- ----------- -------- 11. Cash generated from operations Six months Six months Year ended ended ended 30 Jun 30 Jun 31 Dec 14 13 13 GBP000 GBP000 GBP000 Profit before income tax 86 1,167 1,823 Adjustments for: Amortisation of intangible assets 859 636 1,487 Depreciation of property, plant and equipment 391 491 926 Loss on disposal of property, plant and equipment - - 374 Finance costs 1,111 1,227 2,332 Share option (credit)/expense (79) (103) 161 Decrease in inventories 264 451 408 Decrease in trade and other receivables 1,833 1,289 2,854 (Decrease)/increase in trade payables and provisions (1,657) 2,601 2,601 ---------------------------------------- ---------- ---------- ------- Total net cash inflow from operations 2,808 7,759 12,966 ---------------------------------------- ---------- ---------- ------- 12. Dividends Six months Six months Year ended ended ended 30 Jun 30 Jun 31 Dec 14 13 13 GBP000 GBP000 GBP000 Amounts recognised as a distribution in the period in respect of: Ordinary shares - final dividend 2012 - 3.6p per share - (1,302) (1,302) - (1,302) (1,302) ------------------------------------- ------------ ---------- ------- 13. Financial instruments
The fair values of financial assets and financial liablilities, together with the carrying amounts in the consolidated balance sheet, are as follows:
Carrying Fair amount value 30 June 2014 GBP000 GBP000 Non-current financial liabilities Borrowings (54) (54) ---------------------------------- -------- -------- Current financial liabilities Trade and other payables (64,279) (64,279) Borrowings (22,779) (22,779) ---------------------------------- -------- -------- (87,058) (87,058) ---------------------------------- -------- -------- Current financial assets Trade and other receivables 33,152 33,152 Cash and cash equivalents 2,441 2,441 ---------------------------------- -------- -------- 35,593 35,593 ---------------------------------- -------- --------
The Directors confirm that the interim financial information included in the half yearly financial report has been prepared in accordance with IAS 34 as adopted by the European Union and that the Chairman's Statement includes a true and fair view of the information required by Disclosure and Transparency Rules 4.2.7 and 4.2.8, namely:
-- An indication of the important events that have occurred during the first six months and their impact on the half yearly financial report, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
-- Material related party transactions in the first six months of the year and any material changes in the related party transactions described in the last annual report.
The Directors of office2office plc are listed in the Annual Report and Accounts for the year ended 31 December 2013, since when there have been no changes. A list of current Directors is maintained on the office2office plc website: www.office2office.co.uk.
By order of the Board
Simon Moate Hugh Cawley
Chief Executive Group Finance Director
28 August 2014
Forward-looking statements
Certain statements in this half yearly report are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. As these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. The Group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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