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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Paragon Entertainment Limited | LSE:PEL | London | Ordinary Share | KYG6906M1069 | ORD 0.1P (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 1.15 | 1.10 | 1.20 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMPEL
RNS Number : 7893C
Paragon Entertainment Limited
20 April 2017
Date: 20 April 2017
On behalf of: Paragon Entertainment Limited ("Paragon", the "Company" or the "Group")
Embargoed until 7am
Paragon Entertainment Limited
Final Results Statement
Paragon Entertainment Limited (AIM: PEL), the attractions design, production and fit-out business, is pleased to announce its final results for the year ended 31 December 2016.
Financial Highlights
-- Revenue of GBP14.4 million (2015: GBP8.5 million) grew by 70% -- Gross profit of GBP3.76 million (2015: GBP1.97 million) grew by 91% -- EBITDA profit of GBP1.19 million (2015: profit of GBP0.24 million) -- Earnings of GBP0.31 million (2015: GBP0.60 million) -- Basic EPS of 0.17p (2015: 0.32p) -- Normalised EPS of 0.48p (2015: 0.05p)
Operational Highlights
-- Major projects completed include 'Kung Fu Panda', 'Madagascar' and 'Little Explorers' in the Middle East, with 'Coronation Street', 'Fountains Abbey', 'Rolling Stones' and 'Centre for Life' in the UK
-- Current projects include 'Cloudy with a Chance of Meatballs' and 'Hunger Games', 'Sabic Life Galleries', and the 'Sheikh Abdullah Al Salem Cultural Centre' (SAASCC) in the Middle East
-- In the UK, we are working on Manchester and Cheshire fire safety centres as well as other products for family entertainment centres ('FECs')
-- Secured further strategic relationships with two companies providing for reciprocal representation of each other's products and services
-- Paragon's workshops remain active and the business intends to consolidate its activities in one location
Commenting on the announcement, Mark Taylor, Executive Chairman of Paragon Entertainment said:
"We achieved two notable strategic aims in 2016: First, we achieved solid growth in revenue, EBITDA and normalised earnings, and second, we took the opportunity to invest in building capacity for the future.
In previous years, the growth in revenue would have placed enormous stress on the business but by anticipating this and investing in building long-term capacity, some of which we had previously neglected, we were able to manage the growth well. We have strengthened our management team, including appointing a new CEO, John Dobson, and freeing up the founder, Mark Pyrah, to continue to drive growth in the business. We also made several other new appointments to complement the high quality of existing skills in our team. We have invested in HR, technology and IT infrastructure, and re-configured our premises for the additions to the team.
The numbers speak for themselves: in short, we have continued to do what we said we would do, and we remain excited about the future."
-S -
For further information: Paragon Entertainment Limited Mark Taylor (Chairman) finnCap Ltd 01904 608020 Julian Blunt / Simon Hicks (corporate finance) Alice Lane (corporate broking) 020 7220 0500
Notes to Editors:
Paragon Entertainment Limited (AIM:PEL) is an award winning provider of attraction services from initial design production and consulting through to the fit out and installation of themed attractions, heritage exhibits, museums, aquariums and water parks, inter alia.
Paragon Entertainment is the holding company for Paragon Creative Limited.
The Group's projects have included:
-- The design and build of Kidzania, London;
-- The design and build of galleries at the Olympic Museum for the IOC in Lausanne, Switzerland;
-- The design and build of the galleries at The National Museum of Kazakhstan; -- The design and build of Titanic Belfast; -- The thematic build of the Wallace and Gromit ride at Blackpool Pleasure Beach; -- Licensing and distribution installations at Gullivers, Milton Keynes and Art Mall, Ukraine.
The Group listed on AIM in 2011.
Further information can be found at: http://www.paragonent.com/
CHAIRMAN'S STATEMENT
Our 2016 annual results are particularly gratifying and align with the strategic and financial aims we set at the start of the year. In prior years we under-invested in capacity, so we spent 2016 catching up on our investment in people, equipment and processes. This investment will now help underpin the future of the business.
Further details are set out in the Financial review. However, by way of highlights, we have:
-- Grown revenue by 70% to GBP14.4 million (2015: GBP8.5 million). -- Delivered EBITDA of GBP1.19 million (2015: profit of GBP0.24 million).
-- Continued to increase gross margins from 23.2% to 26.1%, which is now higher than our previous 5-year average, so we remain focused on maintaining this key metric.
We have continued to make positive progress, emerging as a far stronger team and a more disciplined business. Here are the points from last year that we said we would develop during 2016 and beyond:
-- Strengthening management with a strong focus on blending our existing talented people with new talent from within and outside our industry. This gives the business a stronger cultural perspective both operationally and from a customer perspective.
-- We have embarked on a strategic review of the business, focusing on key markets and customers, and where we feel we can add the most value to our customers' businesses.
-- Streamlining internal processes for greater efficiency. -- Focusing on cash management.
-- Improving corporate governance with the introduction of an additional Non-Executive Director, David Bridgford, who has a strong background in our market.
-- Engaging meaningfully with both our bankers and the wider investment community.
The entire Paragon Team have worked tremendously hard for this to happen and I am proud to be part of this team. I would like to welcome all my new colleagues, congratulate everyone at Paragon for the 2016 results, and thank our financiers and investors for their ongoing confidence in us.
Mark Taylor
Executive Chairman
REPORT OF THE CHIEF EXECUTIVE OFFICER
Strategic review
We have reassessed our strategic position with the creation of a clear vision, mission and core values. The core values concern the way we do business and as such have been communicated out to the entire workforce:
Vision:
To be the number one global attractions 'design & build' business in the world.
Mission:
Our core purpose is to use our unique mix of skills and expertise to design and build attractions that delight our customers and deliver sustainable value to all our stakeholders.
Core Values:
-- Recognition: Recognise or honour employees for great levels of service and encourage repeat actions.
-- Passion: We have the humility and hunger to learn. -- Creativity: Think outside the box, innovate, and perceive the world in new ways. -- Results: We love success. -- Customer at the Heart: The core to everything we do.
This, together with our strong sales growth in 2016, underpins our future as a major player in our market place.
We have also spent a significant amount of energy in 2016 realigning our business with our core skill set which is the 'design & build' of attractions. What do we mean by 'attractions'? 'A place which draws visitors by providing something of interest or pleasure'. Basically, anything from a museum to a theme park to a family entertainment centres ('FEC') to experiential retail.
We are now operating based on our "3P" strategy:
-- Projects: Our traditional business of 'design & build.'
-- Partnerships: We continue to develop stronger relationships with key partners like Hamleys, focusing on their global requirements for 'design & build.'
-- Products: This segment is a small but growing part of our business and we are already rolling out FECs themed with quality third party brands.
For the purposes of this review, I have treated licensing and distribution as part of our design and build business.
Market review
We are uniquely positioned to design and build theme parks, domestic and international museums, zoos and aquaria, experiential retail, FECs and science centres because of the quality of our work and breadth of our in-house skills. None of our competitors has this breadth of scope.
In 2016, we competed for, won and executed projects valued at GBP2.5 million on behalf of new clients, with the remaining GBP11.9 million of revenue being repeat business from existing partners. In 2016, our work had the following geographical split: 17% UK, 5% Europe, 75% Middle East & North Africa ('MENA') and 3% rest of the world. This is in line with previous market guidance.
In 2017, we expect that GBP7 million of our turnover will come from repeat partnership business, amounting to approximately 45% of our revenue guidance of GBP15.7 million for 2017 and we anticipate our work to have the following geographical split: 20% UK, 10% Europe, 65% MENA and 5% China.
Internal review
We have invested heavily in infrastructure in 2016 and will continue to do so in 2017. Some of the key projects are listed below:
-- Completely updated our IT systems which will give huge efficiency improvements and set the business up for future growth.
-- Continued to recruit new management in key disciplines such as HR, Purchasing, Contracts and Project management.
-- Created training and development plans for the entire business including: management training, key skills training, formal apprenticeship scheme and graduate training program.
Our emphasis is clearly on developing our existing people, future generations and our internal systems to meet the future needs of our business so that we can better serve our customers.
John Dobson
Chief Executive Officer
Financial review
Results and comparison with previous period
Hot Features
Premium
2016 2015
GBP000s
GBP000s
---------------------- --------- ---------
Revenue 14,424 8,508
Gross profit 3,762 1,970
EBITDA (1) 1,188 238
Underlying operating
profit (2) 963 103
Profit for the year 311 601
----------------------- --------- ---------
(1) EBITDA is defined as earnings before depreciation, impairment, amortisation, interest, share based payments, exceptional items and tax.
(2) Underlying operating profits are defined as EBITDA less depreciation and amortisation of intangibles not related to acquisition.
Results for the year
This final results statement reports the financial performance of the Group for the year ended 31 December 2016. The financial performance for the comparative period 2015 is taken from the audited accounts for that year.
Revenue
Revenue from continuing operations increased 70% to GBP14.4 million (2015: GBP8.5 million).
Gross profit
The gross profit of the Group increased 91% to GBP3.762 million (2015: GBP1.970 million).
Gross margins have seen an increase from 23.2% to 26.1%. As the Group engages on numerous bespoke projects, the gross margin can vary considerably with the mix, location and type of work required.
Operating expenses
Reported operating expenses for the year were GBP3.4 million (2015: GBP1.6 million).
Underlying operating expenses, which are operating expenses before depreciation, impairment, amortisation, share based payments and exceptional items, were GBP2.6 million (2015: GBP1.7 million).
EBITDA and operating profit
The reported EBITDA was earnings of GBP1.2 million (2015: GBP0.2 million).
The underlying operating profit was GBP1.0 million (2015: GBP0.1 million).
The earnings per ordinary share for the year was 0.17 pence (2015: 0.32 pence). Normalised earnings per share, before charging amortisation, charges for share options and exceptional items, was 0.48 pence per share (2015: 0.05 pence).
Interest and facilities
The Group incurred an interest charge of GBP25,000 (2015: GBP25,000) for the year of which GBP25,000 (2015: GBP24,000) was payable against bank loans, bank overdraft and financial leases.
Bank facilities
The Group has debt facilities with HSBC which amount to a GBP0.3 million term loan and a GBP0.8 million overdraft facility. The Group has also entered several financial leases and premium credit arrangements.
At the end of December 2016, the Group was utilising GBP0.2 million of the overdraft facility (2015: GBP0.2 million).
The Group has a secured bank loan with a carrying amount of GBP211,000 at 31 December 2016 (2015: GBP247,000). According to the terms of the agreement, this loan is repayable in equal capital and interest payments over the next five and a half years, completing in 2022. The loan carries an interest cover covenant stating that at the end of each quarter, the Group's EBITDA must exceed interest by 3 times. The loan also carries covenants in relation to tangible net worth and debtor cover. The bank overdraft facility has been renewed until 9 July 2017, and the bank has indicated that they will renew for another year.
Taxation
The Group has incurred taxation amounting to GBP21,000 in respect of the year to December 2016 (2015: GBP nil). A reduction in the deferred tax assets has not been met by the unwinding of the tax liability associated with the intangible assets and as a result, a total tax charge of GBP63,000 (2015: credit of GBP0.3 million mainly arising from Research and Development tax incentives received) is reported.
In 2015, we agreed a settlement with HMRC of a pre-Admission liability of GBP0.7 million which reduced the liability by GBP0.4 million.
Profit for the year
The Group's overall profit for the year is GBP311,000 (2015: GBP601,000).
The 2016 results are after charging GBP511,000 (2015: GBP202,000) for amortisation of acquired intangibles. This includes a charge of GBP314,000 relates to the complete write down of acquired goodwill from the purchase of TVAC (The Visitor Attraction Company). The Group no longer feels this acquired goodwill has any value to its future growth and financial performance.
Discontinued operations
The Group did not discontinue any operations during 2016. A loss of GBP8,000 was sustained in 2015 in relation to the discontinued operation at Merry Hill.
Cash flow and financing
Operating cash flow
The Group sustained an operating cash inflow for the year to 31 December 2016 of GBP1.7 million (2015: cash outflow of GBP0.5 million).
Cash position
The Group's net cash position at 31 December 2016 was a cash balance of GBP1.2 million (2015: deficit of GBP0.2 million).
Net current assets
As at 31 December 2016, the Group had net current assets of GBP1.3 million (2015: GBP0.5 million).
Scott Dickinson
GROUP FINANCE DIRECTOR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2016
Note 2016 2015
GBP000s GBP000s
-------------------------------------- ----- --------- ----------
Revenue 3 14,424 8,508
Cost of sales (10,662) (6,538)
-------------------------------------- ----- --------- ----------
Gross profit 3,762 1,970
Operating expenses (3,363) (1,642)
====================================== ===== ========= ==========
Operating profit analysed as:
EBITDA 1,188 238
Share based payment credit/(charges) (8) 7
Exceptional and other items 4 (45) 420
Amortisation of acquired intangibles (511) (202)
Depreciation (225) (135)
====================================== ===== ========= ==========
Operating profit from operations 399 328
Finance costs (25) (25)
Finance income - 43
Profit before income tax 374 346
Income tax (charge)/credit (63) 263
Profit from continuing operations 311 609
Loss on discontinued operation,
net of tax - (8)
Profit and total comprehensive
income attributable to the owners
of the parent 311 601
====================================== ===== ========= ==========
Earnings per share attributable to the equity holders
of the Company during the year (expressed in pence
per share)
Basic earnings per share
* from continuing operations 5 0.17 0.32
5 - -
* from discontinued operations
-------------------------------------- ----- --------- ----------
0.17 0.32
====================================== ===== ========= ==========
Diluted earnings per share
* from continuing operations 5 0.17 0.32
5 - -
* from discontinued operations
-------------------------------------- ----- --------- ----------
0.17 0.32
====================================== ===== ========= ==========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2016
Note 2016 2015
GBP000s GBP000s
=================================== ===== ========= =========
Non-current assets
Intangible assets 1,282 1,793
Property, plant and equipment 1,183 1,013
Deferred income tax asset 55 128
Total non-current assets 2,520 2,934
----------------------------------- ----- --------- ---------
Current assets
Inventories 32 36
Trade and other receivables 2,710 3,176
Cash and cash equivalents 1,428 33
Total current assets 4,170 3,245
=================================== ===== ========= =========
Total assets 6,690 6,179
=================================== ===== ========= =========
Current liabilities
Trade and other payables 1,568 1,104
Deferred income 838 1,160
Borrowings 6 461 488
Total current liabilities 2,867 2,752
----------------------------------- ----- --------- ---------
Non-current liabilities
Borrowings 6 118 8
Deferred income tax liabilities 52 86
----------------------------------- ----- --------- ---------
Total non-current liabilities 170 94
----------------------------------- ----- --------- ---------
Total liabilities 3,037 2,846
=================================== ===== ========= =========
Equity attributable to the owners
of the parent
Share capital 188 188
Share premium 9,638 9,638 Retained earnings (6,173) (6,493) ----------------------------------- ----- --------- --------- Total equity 3,653 3,333 ----------------------------------- ----- --------- --------- Total equity and liabilities 6,690 6,179 =================================== ===== ========= =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2016
Share Share Accumulated
capital premium losses Total
GBP000s GBP000s GBP000s GBP000s
============================= ========= ========= ============ ============
Balance at 31 December 2014 188 9,638 (7,087) 2,739
------------------------------ --------- --------- ------------ ------------
Comprehensive income
Profit for the year - - 601 601
------------------------------ --------- --------- ------------ ------------
Total comprehensive income - - 601 601
------------------------------ --------- --------- ------------ ------------
Transactions with owners
Share based payment credits - - (7) (7)
------------------------------ --------- --------- ------------ ------------
Transactions with owners - - (7) (7)
------------------------------ --------- --------- ------------ ------------
Balance at 31 December 2015 188 9,638 (6,493) 3,333
Comprehensive income
Profit for the year - - 311 311
------------------------------ --------- --------- ------------ ------------
Total comprehensive income - - 311 311
------------------------------ --------- --------- ------------ ------------
Transactions with owners
Share based payment charges - - 8 8
Transactions with owners - - 8 8
------------------------------ --------- --------- ------------ ------------
Balance at 31 December 2016 188 9,638 (6,174) 3,652
============================== ========= ========= ============ ============
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2016
Note 2016 2015
GBP000s GBP000s
========================================== ===== ========= =========
Cash flows from operating activities
Cash generated/(used) in operations 7 1,769 (781)
Finance costs (25) (25)
Finance income - 43
Taxation received - 286
------------------------------------------ ----- --------- ---------
Net cash generated/(used) in continuing
operations 1,744 (477)
Net cash used in discontinued operations - (37)
------------------------------------------ ----- --------- ---------
Net cash generated/(used) in operating
activities 1,744 (514)
------------------------------------------ ----- --------- ---------
Cash flows from investing activities
Purchases of property, plant and
equipment (231) (32)
Sales of property, plant and equipment - 150
Net cash (used in)/generated from
investing activities (231) 118
------------------------------------------ ----- --------- ---------
Cash flows from financing activities
Repayment of borrowings (88) (72)
Net cash used in financing activities (88) (72)
------------------------------------------ ----- --------- ---------
Net increase/(decrease) in cash
and cash equivalents 1,425 (468)
Cash and cash equivalents and bank
overdrafts at beginning of year (182) 286
------------------------------------------ ----- --------- ---------
Cash and cash equivalents and bank
overdrafts at end of year 1,243 (182)
========================================== ===== ========= =========
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARED 31 DECEMBER 2016
1. Basis of preparation
Financial statements
The full year results for the year ended 31 December 2016 have been extracted from the draft consolidated financial statements. The financial information set out in this preliminary announcement does not constitute statutory accounts but is derived from those draft accounts. While the financial information in this preliminary announcement has been drafted in accordance with International Financial Reporting Standards ('IFRS'), this announcement does not itself contain sufficient information to comply with IFRS.
The financial information shown in this announcement has been extracted from, and is consistent with, the draft financial statements for the year ended 31 December 2016. As at the date of this announcement the audit is as at an advanced stage but the auditors have yet to conclude their work and the audit report in respect of the draft financial statements has not been signed. The Group will publish its Annual Report and Accounts for the year ended 31 December 2016 on its website www.paragonent.com once the audit has been concluded.
Additional performance measures
The Group presents one-off items, underlying EBITDA, adjusted profit before tax and adjusted earnings per share information. These measures are used by the Group for internal performance analysis and incentive compensation arrangements for employees. The terms 'one-off items', 'underlying' and 'adjusted' may not be comparable with similarly titled measures reported by other companies. The term 'EBITDA' refers to operating profit or loss excluding operating one-off items, share-based payment charges, depreciation and amortisation of intangible assets. The term 'underlying operating profits' refers to EBITDA less depreciation. Finally, 'normalised earnings per share' refers to EBITDA less depreciation, net finance costs and attributable tax.
2. Segment reporting
Management currently identifies the Group as having two active operating segments ("Design and Build" and "Licensing and Distribution"), and one historic operating segment that has been closed (Attractions). These operating segments are monitored by the Group's Chief Operating Decision Maker and used to make strategic decisions on the basis of adjusted segment operating results. The "Head Office" segment comprises the corporate activities which are unrelated to the individual operating segments and are only incidental to the activities of the Group as a whole.
Performance is measured based on EBITDA (as stated before share based payments and exceptional items and head office recharges) as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.
Inter-segment pricing is determined on an arm's length basis. The information provided to the Board comprises the Statement of comprehensive income for each segment, the Statement of financial position and the Statement of cash flows and other financial and non-financial information used to manage the business on a consolidated basis.
Segment revenues comprise revenues made to external customers and made between segments.
Segment information for the reporting periods is as follows:
2016
Design Licensing Head
and Build Attractions and Distribution Office Total
GBP000s GBP000s GBP000s GBP000s GBP000s
Revenue
* External customers 14,364 - 60 - 14,424
* From other segments - - - 480 480
-------------------------------- ----------- ------------ ------------------ --------- ---------
Segment revenues 14,364 - 60 480 14,904
EBITDA
* Continuing operations 1,066 - (33) 155 1,188
- - - - -
* Discontinued operations
Segment EBITDA 1,066 - (33) 155 1,188
================================ =========== ============ ================== ========= =========
2015
Design Licensing Head
and Build Attractions and Distribution Office Total
GBP000s GBP000s GBP000s GBP000s GBP000s
Revenue
* External customers 8,460 - 48 - 8,508
* Discontinued operations - 137 - - 137
* From other segments - - - 480 480
-------------------------------- ----------- ------------ ------------------ --------- ---------
Segment revenues 8,460 137 48 480 9,125
EBITDA
* Continuing operations 259 - (86) 65 238
* Discontinued operations - (33) - - (33)
Segment EBITDA 259 (33) (86) 65 205
================================ =========== ============ ================== ========= =========
Information about geographical areas
2016 2015
GBP000s GBP000s
------------------------------ --------- ---------
United Kingdom 2,498 4,692
Middle East and North Africa 10,871 2,870
Europe 657 863
Asia 389 8
Other 9 212
-------------------------------- --------- ---------
Total revenues from external
customers 14,424 8,645
================================ ========= =========
Major customer
Revenues from the largest customer of the Group's Design and Build segment represents GBP7,062,000 (2015: GBP1,408,000) of the Group's total revenues for the period.
3. Revenue
2016 2015
GBP000s GBP000s
-------------------------------- --------- ---------
Design and Build 14,364 8,460
Attractions - 137
Licensing and Distribution 60 48
Less revenue from discontinued
operations - (137)
Total revenues 14,424 8,508
================================== ========= =========
4. Exceptional and other items
2016 2015
GBP000s GBP000s
========================================= ========= =========
Waiver of deferred consideration
on acquisition of subsidiaries - (750)
Net costs related to vendor indemnities - 244
Professional fees regarding Research
and Development tax credits - 36
Cost associated with restructuring
of Group 45 25
Legal fees associated with customer
contract settlements - 25
45 (420)
----------------------------------------- --------- ---------
During 2016, we incurred GBP45,000 which related to redundancy costs as a result of the restructuring of certain departments within the business.
5. Earnings per share
Earnings per share have been calculated by dividing the profit or loss attributable to shareholders by the weighted average number of ordinary shares in issue during the year.
The calculations of basic and diluted earnings per share are:
2016 2015
GBP000s GBP000s
---------------------------------- --------- ---------
Profit for the year attributable
to shareholders 311 601
Loss for the year attributable
to discontinued operations - 8
------------------------------------ --------- ---------
Profit for the year attributable
to continuing operations 311 609
==================================== ========= =========
Weighted average number of ordinary shares in issue:
2016 2015
Number Number
--------- ------------ ------------
Basic 187,680,550 187,680,550
Diluted 187,680,550 188,284,569
=========== ============ ============
There are 2.5 million employee EMI options (2015: 3.1 million) and further Management Preference Options that vary in number and have been excluded in the calculation of diluted EPS. The Marwyn Participation Option expired in December 2016 and has therefore also been excluded.
Earnings per share: 2016 2015
Pence Pence
per per
share share
--------------------------------- ------- -------
Earnings per share attributable
to the equity holders of
the Company
* Basic and diluted 0.17 0.32
Earnings per share from
discontinued operations
* Basic and diluted - -
Earnings per share from
continuing operations
* Basic and diluted 0.17 0.32
=================================== ======= =======
Normalised earnings per share
Normalised earnings per share has been calculated by dividing the profit or loss attributable to shareholders before amortisation, charges for share options and exceptional items including impairment charge on property, plant and equipment by the weighted average number of ordinary shares in issue during the year. The numbers used in calculating the normalised basic earnings per share are reconciled below:
2016 2015
GBP000s GBP000s
------------------------------------- --------- ---------
Profit from continuing operations
before income taxes 383 346
Amortisation 511 202
Charges/(credits) for share options 8 (7)
Exceptional items 45 (420)
Adjusted profit attributable to
shareholders 947 121
Current year tax charge excluding
tax effect of above items (39) (23)
======================================= ========= =========
Normalised earnings 908 98
======================================= ========= =========
Normalised earnings pence per
share 0.48 0.05
======================================= ========= =========
6. Borrowings
2016 2015
GBP000s GBP000s
=========================== ========= =========
Current liabilities
Bank overdraft 185 215
Bank loans 211 247
Hire purchase liabilities 65 26
============================ ========= =========
461 488
=========================== ========= =========
Non-current liabilities
Hire purchase liabilities 118 8
---------------------------- --------- ---------
118 8
=========================== ========= =========
Total borrowings 579 496
============================ ========= =========
Security
The bank loan and bank overdraft are secured by an unlimited debenture by each of the companies in the Group. In 2016 and 2015 the loan maturity has been classified as due on demand, due to a breach of bank covenant in 2014 and the requirements under IAS 1 regarding disclosure.
The hire purchase liabilities are secured against the assets that are subject to the specific arrangement.
Interest rates
The bank loan incurs interest at 2.95 per cent and the bank overdraft at 5.00 per cent above the Bank of England base rate. The hire purchase liabilities incur interest at 7.00 per cent APR.
Maturity analysis
The maturity of the bank loan is 2022 but in 2016 and 2015 the loan has been classified as 'due on demand' due to a breach of bank covenant in 2014 and the requirements under IAS 1 regarding disclosure. The bank notified the Group that it does not intend to take any action in relation to the breach, although reserves its rights under the terms of the agreement. The company has met the loan covenants for the years to 31 December 2016 and 31 December 2015. However, under the reporting requirements set out in IAS 1, the whole value of the loan has been classified as due within one year. The maturity of all hire purchase liabilities is 2018 - 2022. The future minimum payments, are payable as follows:
2016 2015
GBP000s GBP000s
=========================== ========= =========
Within one year 287 279
Between one and two years 95 43
Between two to five years 162 107
In over five years 35 67
Total 579 496
============================ ========= =========
The carrying amounts and fair value of the non-current borrowings are as follows:
Carrying amount Fair value
2016 2015 2016 2015
GBP000s GBP000s GBP000s GBP000s
Hire purchase liabilities 118 8 118 8
Total 118 8 118 8
=========================== ========= ========= ========= =========
The fair value of current borrowings is broadly equal to their carrying amount, as the impact of discounting is not significant. The fair values are based on cash flows discounted using a rate based on the borrowing rate of 7.5%.
The Group has the following undrawn borrowing facilities:
2016 2015
GBP000s GBP000s
============================ ========= =========
Floating rate:
- Expiring within one year 615 585
615 585
============================ ========= =========
The facilities expiring within one year are annual rolling facilities subject to a periodic review during each year. The next review date is July 2017 and the bank has indicated that they will renew for another year.
7. Cash generated/(used) in operations
2016 2015
GBP000s GBP000s
================================== ========= =========
Profit before taxation 374 346
Adjustments for:
Finance costs 25 (18)
Depreciation 225 135
Loss on disposal of fixed assets 35 -
Amortisation 511 202
Share based payments 8 (7)
Inventories 4 10
Trade and other receivables 466 (361)
Trade and other payables 121 (1,088)
Cash used in operations 1,769 (781)
=================================== ========= =========
Non-cash transactions
There are no significant non-cash transactions
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFIFWUFWSEEL
(END) Dow Jones Newswires
April 20, 2017 02:00 ET (06:00 GMT)
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