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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Progility | LSE:PGY | London | Ordinary Share | GB00BF5L3580 | ORD 0.25P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 47.50 | 40.00 | 55.00 | 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
TIDMPGY
RNS Number : 4714X
Progility PLC
24 November 2017
24 November 2017
The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
Progility plc
("Progility" or "the Company" or "the Group")
Final Results
Progility plc (AIM: PGY) is the holding company of a systems integration and project management services group which has been created to provide a range of project management services including innovative and market leading technology solutions.
Chairman's Statement
I am pleased to present Progility's results for the twelve months to 30 June 2017. Our focus during the year has been to seek further improvement in the efficiency and effectiveness of our operations within our three business sectors; Professional Services, (comprising our training and recruitment businesses), Healthcare (comprising Starkstrom) and Communications (comprising our technology businesses in India and Australia).
Financial Performance
Overall revenue was GBP74.7 million, an increase of 21% from continuing operations, which is broadly in line with our revenue growth in the first half. Of this increase of GBP13.1 million, GBP10.5 million arises in our Communications segment where underlying revenue growth of 17% in India and 6% in Australia translated into sterling growth of 34% and 26% respectively.
Our reported operating profit on continuing activities was GBP3.4 million. This was after crediting GBP1.0 million arising from the release of provisions in our Indian business. Our operating profit before highlighted items was GBP2.45 million as compared to a loss of GBP0.1 million in the prior year. We achieved a reported profit before tax of GBP0.1 million (2016 a loss of GBP1.4 million). Our strategic report contains more commentary on our three business areas.
Management and the Board
During the year we have changed the senior management in our Australian business and have continued to work on improving the operational management throughout the group.
I have remained both Chairman and interim Chief Executive throughout the period and I am now working with a senior experienced consultant to implement the next stage of operational effectiveness and to re-examine the potential for the group's constituent businesses and the strategic direction of the group.
During the year the Board of Directors has remained unchanged.
Prospects
Although the last year has shown substantial progress we have still not yet achieved acceptable financial performance, neither have we raised our operational efficiency and processes to an acceptable level.
The next year will be focussed on embedding greater operational controls and efficiencies and ensuring that this will be reflected in long term consistent financial performance. Progress in the current year may potentially be held back as we implement the necessary changes.
Wayne Bos
Executive Chairman
Strategic Report
Progility Plc - Overview
The Progility Group comprises three business segments: Professional Services, (comprising the training and recruitment businesses), Healthcare (comprising Starkstrom) and Communications (comprising our technology businesses in India and Australia).
The group continues to be run as a portfolio. Mergers, acquisitions and disposals are considered when the opportunity to generate above average returns arises. The current and prior period saw no transactions occur.
Principal activity
The principal activities of the Group during the period, as outlined above, are Professional Services, Healthcare and Communications.
Corporate management and segmental reporting
The Group's global headquarters remain in central London, to suit the diverse needs of the various businesses within the Group and is collocated with our professional services London based operations. Operational management is delegated to the senior management in each segment, with a very small team in corporate headquarters now maintaining oversight of business performance and control over cash management. The annual budget process has become increasingly rigorous and will continue to be improved with greater accountability and transparency being provided to the group.
Our business is managed through three business segments to maximize our ability to communicate and to deliver our full range of products and expertise to our key clients' decision makers across the diverse territories and time zones in which we operate. These three segments reflect the management responsibility and accounting arrangements used to manage and report upon the performance of the business.
Key performance indicators (KPI's) for each business are revenue, gross profit margin and operating profit.
The Group's chief operating decision maker remains the Executive Chairman who reviews and considers these reports at the formal board meetings and in regular dialogue with the senior management in each segment.
Business Review
Professional Services
Hot Features
Premium
As reported As reported
Year ended Year ended
30.6.17 30.6.17 30.6.16 30.6.16
GBP000 GBP000 GBP000 GBP000
Revenue Segment Revenue Segment
Profit Profit
Professional Services
continuing operations 15,310 1,277 15,924 1,087
Professional Services
discontinued operations 416 1 824 (268)
Professional Services
total 15,726 1,278 16,748 819
The founding unit of the Group, the Training business, operates under the ILX brand. ILX is a leading provider of training in best practice for programme, project and IT service management, including strategic programme and project management consulting solutions. ILX also develops bespoke training courses for large-scale IT migration and transformation projects. We deliver ILX services from offices in the UK, Dubai and Australia, with partnerships extending into Europe and the US.
TFPL, Sue Hill and Progility Recruitment are our UK-based recruitment services brands. TFPL became part of the Group in July 2014 with Sue Hill joining in November 2014. Together they form a recruitment division which has access to a pool of quality assured candidates trained in, amongst other skills, project management services and digital information management. Obrar is a consulting-led project management services company, with over 30 years' experience of delivering technology and people solutions in the UK and internationally. Obrar focuses on multimedia-driven contact centres, corporate technology infrastructure and associated operational change management.
Woodspeen Training works with individuals and companies across a range of occupational areas, led by an experienced team of advisers and trainers, operating from four locations across the UK, enhancing young people's skills and helping them into work.
Overall revenue of this segment fell by 6%, while operating profits improved by 56%, a result of better margins in the ILX and Woodspeen training businesses and the elimination of losses from the southern operations of Woodspeen, treated as a discontinued activity as they are being progressively wound down.
During the year the ILX training business achieved revenue ahead of the prior year with improved operating margins. This year has seen a turnaround in the performance of the business with improvements in operational efficiency and marketing effectiveness being translated into an improved financial performance.
The recruitment business, which specialises in both temporary and permanent resources in information management, has had a challenging year with differing performance across the various industry categories of our clients. Net fee income fell across the business, largely due to difficult trading conditions within the financial services sector with uncertainty surrounding Brexit. The core markets of the recruitment business (Knowledge and Information Management) remain favourable and profitable and we are investing in new areas for the future. As part of this diversification of revenue streams, we are delighted to have been awarded a place on a key government contract which we see providing excellent growth opportunities over the next few years. The business remains focussed on building its proposition and developing new markets, especially the areas of Project Management and Data Protection/Privacy.
Woodspeen's vocational training operations have faced a tough year operating in a sector that has seen significant structural changes. This notwithstanding it has completed its restructure and grown its manufacturing business significantly, winning multi-year contracts with large automotive and aerospace manufacturing clients. The business is now profitable, contributing GBP3.3 million to sector revenue and GBP0.2 million to sector profit, a much improved performance over the prior year. The decision to cease providing training in the south of the UK, which was made in the previous financial year, has also seen the elimination of losses in that part of the business. Woodspeen is also now sized and staffed appropriately to harness the opportunities brought by the Government's newly introduced 'Apprenticeship Reforms'.
Healthcare
As reported As reported
Year ended Year ended
30.6.17 30.6.17 30.6.16 30.6.16
GBP000 GBP000 GBP000 GBP000
Revenue Segment Revenue Segment
Profit Profit
Healthcare 14,281 1,433 11,148 62
Healthcare comprises the activities of the Starkstrom Group, the operating theatre and critical care equipment business, which delivers and installs advanced medical equipment and is a leading provider of fully integrated solutions, with over 40 years' experience in the UK.
The year saw a particularly strong performance by Starkstrom where the turnkey strategy gained significant momentum and helped to secure several large design and build projects in excess of GBP1m, along with a variety of state of the art hybrid operating theatres. The year also saw the addition of new product lines where large orders were secured. This was particularly satisfying as one of the new product lines gained traction in an established market with other suppliers who already have a strong reputation and large installed customer base. These sales were also secured at strategically important reference sites such as the University teaching hospitals, Addenbrookes and the John Radcliffe, which will provide a platform for continued growth.
Starkstrom achieved an operating profit of GBP1.7 million with an operating margin of 12% .The year on year improvement was significant, however in 2016 the division had to absorb approximately GBP0.7 million in respect of the closure of its activities in the middle east which needs to be taken into account when considering the underlying improvement.
Particular focus was also given to the regulatory side of the business, in consideration of transitioning quality standards and our need as a manufacturer and supplier to be aligned with these new standards, and also to be ahead of our competition. As such, and after many months work, Starkstrom secured certification against ISO9001 2015 and ISO13485, a major achievement. Investment in this area will continue.
The order book has been maintained at a high level and finished the year at GBP4.8m, leaving the business well placed to continue the strong performance into the next financial year.
Communications
As reported As reported
Year ended Year ended
30.6.17 30.6.17 30.6.16 30.6.16
GBP000 GBP000 GBP000 GBP000
Revenue Segment Revenue Segment
Profit Profit
Communications 45,091 689 34,559 515
Communications comprises the technology businesses in Australia and India. The Communications segment overall has shown strong revenue growth of 30% significantly impacted by the beneficial movement in exchange rates over the period. Underlying local revenue growth of 17% in India and 6% in Australia translated into sterling growth of 34% and 26% respectively. Although operating profit in this segment grew by 34% year on year this is made up of an improvement in the performance in Australia with a return to an albeit small profit but a decline in Indian profitability.
Progility Technologies in Australia operates a communication systems integration business that designs, implements, trains and maintains technology solutions for medium and large enterprises. Its focus is on the transport, utilities, retail and healthcare industries in Australasia and on the mining industry globally. The business is headquartered in Melbourne, Australia, with five regional sales offices.
The client facing brands include:
-- Communications Australia, focused on communication systems integration; -- CA Bearcom, Australia's largest distributor of two-way radio communications products;
-- Minerals & Energy Technologies, which designs, implements and manages an array of integrated communications solutions for specific mining, energy and transport projects.
In Australia the year under review saw a continuation of the recovery started in the previous year. Revenue rose by 26% to GBP19.6 million, 6% growth in local currency, and the business returned to operating profitability. The market remains challenging, but the recovery is expected to gain momentum in the upcoming year. During the year the top management in Australia was changed which we believe will help achieve this. The costs of this change have been absorbed in the operating result.
Progility Technologies Pvt. Ltd, formerly known as Unify Enterprise Communications Pvt, provides unified communications and systems integration solutions across India and surrounding countries. The business has significant overlap of product offerings with Communications Australia, whilst adding extensive service and maintenance capabilities, providing level 1, 2 and 3 support to its clients, which include over 200 hospitals under contract in the Indian market.
Revenue contribution from our business in India grew by 34% to GBP25.5 million, 17% growth in local currency. During the year, the business has been stabilised across all our target business segments (voice, video, data, surveillance and services) and we have strengthened the Progility brand across the enterprise market
The key growth areas in India have been video conferencing and audio visual integration. The voice business has seen a steady growth mainly due to better price negotiation with the product suppliers and increased sales of Progility branded voice products to address the fast growing SME market. The services business achieved marginal growth over the prior year. There has been strong customer retention year on year and a large majority of customers entered into a comprehensive maintenance contract after warranty.
Progility Technologies Pvt. Ltd was awarded "Partner of the year Enterprise Segment" and Partner of the year Government segment" by Polycom, it's original equipment supplier. The company also received a special recognition from Polycom for the on-time execution of a single order spread over 160 locations.
Performance Management
Highlights
-- Overall revenue grew from GBP61.6 million to GBP74.7 million an increase of 21%.
-- GBP10.5 million of the revenue growth was attributable to our Communications segment making up almost 80% of the growth.
-- Operating profit of GBP2.45 million before highlighted items compared to a loss of GBP0.1million in 2016.
-- Operating profit performance in the Professional services and healthcare segments together contributed GBP1.8 million of the improved operating profit from GBP2.1 million of increased revenue.
Highlighted items
As reported As reported
Year ended Year ended
30.6.17 30.6.16
GBP000 GBP000
Highlighted items 1,000 1,412
In the period under review, the Group was able to release a further GBP1.0 million of its provision made for potential tax liabilities, when Progility Technologies Pvt Limited was acquired at the end of 2014. The provision has been reduced to nil, as there are now no remaining years outstanding for which pre-acquisition related potential tax liabilities may arise.
Central corporate costs
As reported As reported
Year ended Year ended
30.6.17 30.6.16
GBP000 GBP000
Central corporate costs (952) (1,770)
Central costs comprise back office operations including property, legal, finance, IT, communications, HR and board costs in London. Central costs have declined following the rationalisation exercise in the prior year, and a number of non-recurring items incurred in the prior year were not repeated. Central costs have been recharged to subsidiaries where possible and these costs cannot be further allocated to CGUs beyond the allocations already made.
Financial Review
Operating performance
The Group delivered revenues of GBP74.7 million (2016: GBP61.6 million), growth of 21.3%. Gross margins decreased slightly to 32.9% (2016: 36.7%). Operating profit before highlighted items (see note 10) rose to GBP2.4 million (2016: GBP0.1 million loss).
Highlighted items include the release of GBP1.0 million from a provision which arose from the acquisition of Progility Technologies Pvt in India. No impairment charge was made relating to goodwill in the Australian operations (2016: GBP0.6 million).
Result Underlying
for the result
period for the
ended Highlighted period
30.6.2017 items ended
30.6.2017 30.6.2017
GBP'000 GBP'000 GBP'000
Revenue - continuing operations 74,682 - 74,682
Revenue - discontinued
operations 416 - 416
Revenue - total 75,098 - 75,098
Operating profit/(loss)
- continuing operations 2,446 1,000 3,446
Operating profit/(loss)
- discontinued operations 1 - 1
Operating profit/(loss)
- total 2,447 1,000 3,447
=========== ============ ===========
Finance costs
The Group incurred net finance costs of GBP3.3 million (2016: GBP2.7 million) during the reporting period. The year on year increase reflects the higher levels of debt in the Group, a result of the capitalisation of unpaid interest.
Taxation
The tax expense for the year was GBP0.6 million (2016: GBP1.0 million), lower than the prior year as a result of lower tax in India, Australia and New Zealand.
Profit for the period and earnings per share
The loss attributable to equity shareholders was GBP0.5 million (2016: GBP2.7 million loss) from continuing and discontinued operations. Losses per share were 0.22 pence basic and diluted (2016: 1.22 pence loss per share basic and diluted) from continuing and discontinued operations.
Hive Down
Progility Plc is the AIM listed holding company of the Progility Group. Until 30 June 2015, the United Kingdom operations of the ILX Group training division of the business traded as part of the Progility plc legal entity. A decision was made to hive down the assets, liabilities and trade of the ILX training division to a 100% owned subsidiary company, ILX Group Plc, with effect from 1 July 2015. Details of the assets and liabilities transferred to ILX Group Plc are included in the note 2 to the accounts. It should be noted that this transaction has no impact on the consolidated financial statements as it is intra-group.
Going Concern
The Group has prepared its accounts on a going concern basis based on current forecasts for the period through to December 2018. The Board believes that it can meet its day-to-day working capital requirements from operating cash flows and its existing facilities.
Cash flow, net debt and facilities
Cash flow
Cash generated from operating activities was GBP1.4 million (2016: GBP1.8 million). The Group generates operating cash flow from its product sales, maintenance contracts and from advance payments from customers.
The Group paid GBP0.4 million in income tax during the reporting period (2016: GBP0.6 million paid).
The Group continues to invest in its staff development, its product range and also incurred capital expenditure in the period relating to updates of intellectual property assets, product development and its internal systems and equipment to improve operating efficiency.
Net debt and facilities
At the balance sheet date the Group's debt comprised loans and overdrafts due within one year of GBP1.3 million (2016: GBP1.2 million) and GBP19.3 million (2016: GBP18.5 million) falling due in over one year. Of these amounts a total of GBP19.7 million represents shareholder loans made up of GBP0.4 million of convertible loan notes and GBP19.3 million of other notes.
Net debt at the year end, defined as all bank and third party debt, less cash at bank, excluding shareholder loans was an asset of GBP2.4 million (2016: asset of GBP2.8 million). This comprised: GBP3.3 million in cash balances, less GBP0.9 million in invoice discounting facilities.
Financial Statements
Consolidated Statement of Comprehensive Income for the Year ended 30 June 2017
Before Highlighted Before Highlighted
Highlighted items Year Highlighted items Year
items Note ended items Note ended
30.6.2017 10 30.6.2017 30.6.2016 10 30.6.2016
Continuing
operations GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 74,682 - 74,682 61,631 - 61,631
Cost of sales (50,141) - (50,141) (39,015) - (39,015)
---------------- ------------ -------------- ------------ ------------ ----------
Gross profit 24,541 - 24,541 22,616 - 22,616
Administrative
and distribution
expenses (22,095) - (22,095) (22,722) (588) (23,310)
Other operating
income - 1,000 1,000 - 2,000 2,000
---------------- ------------ -------------- ------------ ------------ ----------
Operating profit 2,446 1,000 3,446 (106) 1,412 1,306
Financial income 132 - 132 263 - 263
Financial
expenses (3,458) - (3,458) (2,962) - (2,962)
---------------- ------------ -------------- ------------ ------------ ----------
Profit/(Loss)
before tax (880) 1,000 120 (2,805) 1,412 (1,393)
Taxation (568) - (568) (1,038) - (1,038)
---------------- ------------ -------------- ------------ ------------ ----------
Profit/(Loss)
from continuing
operations (1,448) 1,000 (448) (3,843) 1,412 (2,431)
Discontinued
operation
Profit/(loss)
from
discontinued
operations, net
of tax 1 - 1 (268) - (268)
---------------- ------------ -------------- ------------ ------------ ----------
Profit/(Loss)
for the year
attributable
to equity
shareholders (1,447) 1,000 (447) (4,111) 1,412 (2,699)
================ ============ ============== ============ ============ ==========
Items that are
or may be
reclassified
subsequently to
profit or loss
Foreign
currency
translation
differences
- foreign
operations 600 662
-------------- ----------
Other
comprehensive
income for the
year, net of tax 600 662
-------------- ----------
Total
comprehensive
Income/(loss)
for the year 153 (2,037)
============== ==========
Earnings/(loss)
per share from
continuing
operations
Basic (0.22)p (1.22)p
Diluted (0.22)p (1.22)p
Consolidated statement of Financial Position as at 30 June 2017
As at As at
30.6.2017 30.6.2016
Assets GBP'000 GBP'000
Non-current assets
Plant and equipment 937 1,029
Intangible assets 19,535 19,501
Deferred tax asset 825 709
----------- -----------
Total non-current
assets 21,297 21,239
----------- -----------
Current assets
Inventories 3,927 3,260
Trade and other receivables 17,837 14,931
Other current assets 3,088 2,827
Cash and cash equivalents 3,305 3,564
----------- -----------
Total current assets 28,157 24,582
Total assets 49,454 45,821
----------- -----------
Current liabilities
Trade and other payables (23,797) (20,309)
Deferred/contingent
consideration - (681)
Provisions (2,144) (2,650)
Tax liabilities (443) (174)
Bank and shareholder
loans (1,261) (1,174)
----------- -----------
Total current liabilities (27,645) (24,988)
----------- -----------
Non-current liabilities
Shareholder loans (19,302) (18,463)
Deferred tax liability (186) (186)
Provisions (100) (131)
----------- -----------
Total non-current
liabilities (19,588) (18,780)
----------- -----------
Total liabilities (47,233) (43,768)
----------- -----------
Net assets 2,221 2,053
=========== ===========
Equity
Issued share capital 19,967 19,967
Share premium 114 114
Other reserve 75 75
Merger reserve (14,854) (14,854)
Own shares in trust (2) (2)
Share option reserve 57 42
Retained earnings (4,067) (3,620)
Foreign currency translation
reserve 931 331
Total equity 2,221 2,053
=========== ===========
Consolidated Cash Flow Statement for the Year ended 30 June 2017
Year ended Year ended
30.6.2017 30.6.2016
GBP'000 GBP'000
Operating profit 3,446 1,038
Adjustments for:
Depreciation and amortisation 743 1,135
Loss on fixed asset disposal - 96
Impairment of intangibles - 588
Share option charge 22 31
(Increase)/decrease in inventories (499) 1,113
(Increase)/decrease in trade
and other receivables (2,077) 2,400
Increase/(decrease) trade and
other payables (276) (4,446)
Exchange difference on consolidation 31 (170)
----------- -----------
Cash generated from operations 1,390 1,785
Income taxes (paid)/recovered (357) (590)
----------- -----------
Net cash generated from operating
activities 1,033 1,195
----------- -----------
Investing activities
Interest received 132 263
Purchases of property and equipment (465) (388)
Capitalised expenditure on product
development (80) (64)
Acquisition of subsidiaries,
net of cash acquired (681) (1,361)
----------- -----------
Net cash used by investing activities (1,094) (1,550)
----------- -----------
Financing activities
Proceeds from borrowings - 2,775
Repayment of borrowings (347) (2,402)
Interest costs paid (28) (75)
Net cash from financing activities (375) 298
----------- -----------
Net change in cash and cash equivalents (436) (57)
Cash and cash equivalents at
start of year 3,564 3,350
Effect of foreign exchange rate
differences 177 271
Cash and cash equivalents at
end of year 3,305 3,564
=========== ===========
Cash and cash equivalents comprise
Cash in hand and at bank 3,305 3,564
Bank overdraft - -
3,305 3,564
=========== ===========
Statement of Changes in Equity for the year ended 30 June 2017
Called Own Foreign
up Share shares Share currency
share premium Other Merger in option translation Retained
capital account reserve reserve trust reserve reserve earnings Total
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance
at 30.6.2015 19,967 114 75 (14,854) (2) 43 (331) (953) 4,059
Options
granted - - - - - 31 - - 31
Revaluation
of own
shares - - - - - - - - -
Options
lapsed
and waived - - - - - (32) - 32 -
Transactions
with owners - - - - - (1) - 32 31
-------- -------- -------- --------- -------- -------- ------------ --------- --------
Loss for
the year - - - - - - - (2,699) (2,699)
Other
comprehensive
income:
Foreign
currency
translation
adjustment - - - - - - 662 - 662
-------- -------- -------- --------- -------- --------
Total
comprehensive
income
for the
year - - - - - - 662 (2,699) (2,037)
-------- -------- -------- --------- -------- -------- ------------ --------- --------
Balance
at 30.6.2016 19,967 114 75 (14,854) (2) 42 331 (3,620) 2,053
======== ======== ======== ========= ======== ======== ============ ========= ========
Balance
at 30.6.2016 19,967 114 75 (14,854) (2) 42 331 (3,620) 2,053
Options
granted - - - - - 22 - - 22
Revaluation
of own
shares - - - - - - - - -
Options
lapsed
and waived - - - - - (7) - - (7)
Transactions
with owners - - - - - 15 - - 15
------- ---- --- --------- ---- ---- ---- -------- ------
Profit
for the
year - - - - - - - (447) (447)
Other comprehensive
income:
Foreign
currency
translation
adjustment - - - - - - 600 - 600
------- ---- --- --------- ---- ----
Total comprehensive
income
for the
year - - - - - - 600 (447) 153
------- ---- --- --------- ---- ---- ---- -------- ------
Balance
at 30.6.2017 19,967 114 75 (14,854) (2) 57 931 (4,067) 2,221
======= ==== === ========= ==== ==== ==== ======== ======
Financial Information
The preliminary financial information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 but is derived from the audited accounts for the years ended 30 June 2017 and 30 June 2016.
Progility plc (the "Company") is a public limited company incorporated in England and Wales and, together with its subsidiaries, forms the Progility group (the "Group"). These financial statements are presented in pounds sterling which is the Company's functional currency. All amounts have been rounded to the nearest thousand unless otherwise indicated.
The Group financial statements were authorised for issue by the directors on 23 November 2017.
The Group financial statements consolidate those of the Company and its subsidiaries. The Company financial statements present information about the Company as a separate entity and not about its Group.
Both the Group financial statements and the Company financial statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU"). In publishing the Company financial statements here together with the Group financial statements, the Company has taken advantage of the exemption in Section 408 of the Companies Act 2006 not to present its individual statement of comprehensive income and related notes that form a part of these approved financial statements.
The statutory accounts for the year ended 30 June 2017 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. Statutory accounts for the year ended 30 June 2016 have been filed with the Registrar of Companies. The auditor's report on those 2016 accounts was unqualified.
Basis of preparation
The preparation of the Group accounts in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements. The key accounting estimates and assumptions are set out below. Such estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable in the circumstances and constitute management's best judgment of conditions at the date of the financial statements.
In the future, actual experience may deviate from these estimates and assumptions, which could affect the financial statements as the original estimates and assumptions are modified, as appropriate, in the year in which the circumstances change.
The financial statements have been prepared on the historical cost basis as modified by financial assets and financial liabilities (including derivative financial instruments) at fair value.
Highlighted items
The Group incurred costs during the year which we have highlighted. These costs, set out below, were the release of the transfer price provision.
Year ended Year ended
30.6.2017 30.6.2016
GBP'000 GBP'000
Non-recurring
Impairment of goodwill * - 588
Release of transfer pricing provision** (1,000) (2,000)
Total highlighted items (1,461) (1,412)
=========== ===========
* Relates to the impairment of Goodwill in Progility Pty Ltd - see note 15.
** Relates to the transfer pricing provision made on the acquisition of Progility India in Dec 2014.
Earnings per share from continuing operations
Earnings per share is calculated by dividing profits/(loss) from continuing operations attributable to shareholders by the weighted average number of shares in issue during the year.
Potential ordinary shares arising under potential conversion of the convertible loan and share options outstanding are considered anti-dilutive for the year ended 30 June 2017 and the period ended 30 June 2016. At 30 June 2017, the 3.95 million outstanding share options were excluded from the dilution calculation as the exercise price of 10 pence was greater than the average price for the period in issue.
Year
Year ended ended
30.6.2017 30.6.2016
GBP'000 GBP'000
Profit/(Loss) for the year from
continuing operations attributable
to equity shareholders (448) (2,431)
============ ============
Weighted average shares 199,666,880 199,666,880
Weighted average shares for
diluted earnings per share 199,666,880 199,666,880
============ ============
Basic earnings/(loss)
per share from continuing
operations (0.22)p (1.22)p
Diluted earnings/(loss)
per share from continuing
operations (0.22)p (1.22)p
Report and Accounts
The Report and Accounts and Notice of Annual General Meeting will be published and sent to shareholders in the next few days. It will also be made available on the Company's website - www.progility.com, pursuant to AIM Rule 20.
For further information, please contact:
Progility plc
Wayne Bos, Executive Chairman 020 7371 4444
www.progility.com
SPARK Advisory Partners Limited (Nominated Adviser)
Mark Brady 020 3368 3551
W H Ireland Limited (Broker)
Adrian Hadden/Mark Leonard 020 7220 1666
Note to Editors:
Group Description
Progility plc, the systems integrator and project management services firm has three operating divisions: Professional Services, Healthcare and Communications.
Professional Services
The Professional Services division includes ILX Training, the TFPL, Sue Hill and Progility Recruitment UK-based recruitment services brands, Obrar Consulting and Woodspeen Training.
The founding unit of the Group, ILX Training is a leading provider of training in best practice for programme, project and IT service management, including strategic programme and project management consulting solutions. ILX also develops bespoke training courses for large-scale IT migration and transformation projects. We deliver ILX services from offices in the UK and Dubai and Australia, with partnerships extending into Europe and the US.
TFPL became part of the group in July 2014 with Sue Hill joining in November 2014. Together they form a recruitment division which boasts a pool of quality assured candidates trained in project management services, including digital information management candidates. Progility Recruitment was established in January 2014 to offer specific project management recruitment services. Obrar is a consulting-led project management services company, with over 30 years' experience of delivering technology and people solutions in the UK and internationally. Woodspeen Training works with individuals and companies across a range of occupational areas, led by an experienced team of advisors and trainers, operating from four locations across the UK, enhancing young people's skills and helping them into work.
Communications
The Communications division comprises Progility Technologies in Australia and India.
Progility Technologies operates a communication systems integration business that designs, implements and maintains solutions for medium and large enterprises with a focus on the rail, port, oil and gas, power, water and healthcare industries in Australia, on the healthcare, hospitality, financial services, public sector, manufacturing, education and IT sectors in India and on the mining industry globally.
The Australian business, which merged with the Group in October 2013, is headquartered in Melbourne, Australia, and has offices in Sydney, Brisbane, Perth, Latrobe Valley and Castlemaine. The Indian business which joined the Group in December 2014, is headquartered in Mumbai and operates through a network of 21 offices throughout India.
Healthcare
Healthcare comprises the activities of the Starkstrom Group, the operating theatre and critical care business, which delivers and installs advanced medical equipment and is a leading provider of fully integrated solutions, with over 40 years' experience in the UK sector. Acquired in July 2014, Starkstrom is headquartered in north-west London and with a manufacturing and assembly facility in Leicester.
Progility Finco
Progility Finco is a wholly owned subsidiary of Progility plc which was incorporated as a special purpose vehicle in order to issue loan notes which would be admitted to the Official List of the Channel Island Securities Exchange Authority to help meet the financing requirements of the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
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November 24, 2017 10:59 ET (15:59 GMT)
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