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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Servoca | LSE:SVCA | London | Ordinary Share | GB00BF2VKD83 | 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% | 8.50 | 2.00 | 15.00 | 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
TIDMSVCA
RNS Number : 0230Z
Servoca PLC
12 December 2017
SERVOCA Plc
("Servoca" or the "Group")
Preliminary unaudited results
for the year ended 30 September 2017
Highlights
-- Revenue GBP80.2m (2016: GBP69.2m), an increase of 15.9% -- Gross profit GBP19.7m (2016: GBP18.6m), an increase of 5.9% -- Adjusted EBITDA* GBP4.4m (2016: GBP3.9m), an increase of 12.8% -- Adjusted profit before taxation* GBP3.9m (2016: GBP3.5m), an increase of 11.4% -- Profit before taxation unchanged from prior year at GBP2.9m (2016: GBP2.9m)
-- Cash generated from operations before tax in the year was GBP2.7 million (2016: GBP2.3 million)
-- Adjusted basic EPS of 2.56p* (2016: 2.25p), an increase of 13.8% -- Dividend of 0.40p per share (2016: 0.35p), an increase of 14.3%
* Before share based payment charges, amortisation of intangible assets and contingent consideration totalling GBP1.0m (2016: GBP0.7m).
Andy Church, CEO, commented:-
These results represent another very positive year of progress and build on our consistent improvement over recent years. All five of the business areas through which we manage the Group saw an increase in revenues and our Outsourcing operations enjoyed a significant improvement in operating profits. The performance of the Group continues to benefit from its diversified business mix. We are again pleased to be able to declare an increased dividend payment for the year-end, which our strong financial performance enables us to do. Our performance over the last year means we continue to face the future with confidence.
For further enquiries:
Servoca Plc
Andrew Church, CEO 020 7747 3030
N+1 Singer
Alex Price (Corporate Finance) 020 7496 3000
Michael Taylor (Corporate Broking)
Newgate Communications
Bob Huxford/James Ash 020 7653 9850
Chairman / CEO Review and Strategic Report
Introduction
We are pleased to report that for the year ended 30 September 2017 we have delivered another year of improved performance for the Group. Revenue and adjusted pre-tax profits achieved double-digit growth over prior year and continue to evidence the resilience of the Group's business mix.
Both our Recruitment and Outsourcing operations delivered revenue growth and improved adjusted profitability over prior year with the biggest increase in operating profit coming from our Outsourcing businesses.
Our Security business benefited from the combined impact of sales growth and action taken at the end of the prior year to reduce overheads. It has therefore seen a substantial increase in operating profits. As reported in our Interim statement, our Domiciliary Care business had made good progress in the first half and was well positioned for the full year. We are pleased to report that this progress accelerated in the second half helping to deliver a significant improvement in financial performance over prior year.
Our Recruitment operations all delivered increased revenue with the improvement to profitability being led by our Health and Social Care business and our Criminal Justice division. Our recruitment services into the NHS and parts of the Education market faced a more challenging year. It is therefore particularly pleasing to see adjusted operating profits continue to move forward in the Recruitment operation despite these challenges.
The Group's strong financial performance enables the Board to propose a dividend of 0.40p per share for the year end (2016: 0.35p), an increase of 14.3% over the prior year.
The Board also intends to continue the current policy of buying back the Group's shares, in particular at recent price levels, which the Board thinks fail to fairly represent the value of the company. Our strong balance sheet and operating cash flow enable us to continue to do so for the foreseeable future.
Financial review
Group revenue was GBP80.2 million compared with GBP69.2 million (2016), an increase of 15.9 %. Gross profit for the year was GBP19.7 million against GBP18.6 million (2016), an increase of 5.9%.
Adjusted EBITDA* increased to GBP4.4 million (2016: GBP3.9 million), an increase of 12.8%. Unadjusted EBITDA was GBP3.4m (2016: GBP3.3m).
Adjusted profit before taxation* was GBP3.9 million (2016: GBP3.5 million), an increase of 11.4%. Unadjusted profit before taxation was GBP2.9m (2016: GBP2.9m).
Adjusted profit after taxation* was GBP3.2 million (2016: GBP2.8 million), an increase of 14.3%. Unadjusted profit after taxation was GBP2.2m (2016: GBP2.1m).
Adjusted basic earnings per share* were 2.56p compared with 2.25p (2016), an increase of 13.8%. Unadjusted basic earnings per share were 1.74p (2016: 1.71p).
* Before share based payment charges, amortisation of intangible assets and contingent consideration totalling GBP1.0m (2016: GBP0.7m).
Cash generated from operations was GBP2.7 million (2016: GBP2.3 million)
Net debt decreased by GBP0.1 million from GBP2.4 million at 30 September 2016 to GBP2.3 million at 30 September 2017. The principal differences between cash generated from operations of GBP2.7 million and the GBP0.1 million decrease in net debt were corporation tax payments of GBP1.0 million, the purchase of property, plant and equipment of GBP0.7m, the 2016 final dividend of GBP0.4 million and GBP0.3 million in respect of the purchase of own shares.
The dividend of 0.40p per share will be paid on 9th February 2018 to shareholders on the register on 5 January 2018. The associated ex-dividend date is 4 January 2018.
Operational highlights
Strategy and delivery
The focus in the period has remained the development of the Group's capabilities in those areas that afford good growth opportunities. We would like to thank all of our employees for their excellent contribution to another successful year.
Outsourcing
Our outsourcing activities are primarily based in two areas; Domiciliary Care and Security. Combined revenues from these areas were up 17% on prior year and accounted for 21% of Group revenues.
Our Security business increased revenues by 14% and gross profit by 8% over the prior year. Combined with previous action taken to yield a more efficient overhead base, this produced a substantial improvement in operating profit.
Growth was led by our Manned Guarding and Electronic security offerings. As referenced in our Interim Statement, both of these areas secured substantial additional work towards the end of the prior year that we have seen material benefit from during the year under report.
The growth in our Electronics division is largely attributable to the substantial expansion of an existing contract. The contract involves the deployment of a unique software solution for loss prevention in the retail industry. The client is a major national UK grocery retailer that has deployed the product for several years in a sizeable number of their stores. Having carefully monitored the results and return on investment during this period, the client has committed to a significant expansion into what is expected to be a majority of their store estate over the next few years.
Our Domiciliary Care business increased revenues by 19% and gross profit by 12% over the prior year and this has also led to a substantial improvement in their operating profit.
In our Interim Statement for the six months ended 31 March 2017, we reported that our Domiciliary Care business had enjoyed a better start to the year and that results were ahead of the same period in the prior year. We are pleased to report that this progress has accelerated in the second half with revenues and gross profit both 18% higher than in the first half. The second half has benefitted from the implementation of some meaningful new contract wins that were secured earlier in the year.
This year has seen the start of action that recognizes the sector had to receive additional funding in order for critical health and social care services to remain viable. There have been well documented pressures on providers' costs in recent years (including increases to the National Living Wage, Pension Auto-Enrolment and Apprenticeship Levy costs) and equally well documented funding constraints that have resulted in static or declining charge rates. There is also increasing recognition that a failure to adequately fund care in the community only increases the financial and resource burden placed upon the NHS in hospital settings or elsewhere. The adult social care precept has been one step towards generating additional funding and our experience during the year under report has been that the majority of commissioning authorities have increased fee rates in line with increases to statutory costs.
We have always managed costs tightly in this business area and retained a focus on only those supply arrangements that we believed were sustainable. We continue to adopt this philosophy and this has given us a solid foundation for profitable growth. The new contract wins are consistent with these principles and are therefore delivering a positive impact on operating profits.
Recruitment
Our recruitment businesses supply into the Education, Healthcare and Criminal Justice markets. Combined revenues from these areas were up 16% on prior year and accounted for 79% of Group revenues.
Our Healthcare recruitment division has enjoyed another year of significant growth over prior year, increasing revenues by 16% and gross profits by 11%. This also led to the most significant improvement to prior year operating profits of any area of the Group.
It is important to understand that our services in this area operate in two distinct markets through separate subsidiary brands. Servoca Nursing and Care supplies temporary resource to the Health and Social Care market, which is almost exclusively within the private sector, whilst Firstpoint Healthcare supplies Nursing and Care professionals into the NHS. This distinction continues to prove important as, whilst revenues increased in both areas, gross profit and adjusted operating profit growth came entirely from our Health and Social Care supply.
As previously reported, the NHS supply has faced significant challenges, largely as a result of previously imposed agency price caps and a focus on reducing agency spend. This has been compounded in the second half of this year by reforms to IR35 and the use of personal service companies in the public sector. In response to these challenges and the margin pressure that resulted, we have focused efforts on increasing volumes of supply in an efficient manner to protect profitability. This has included the restructure of support operations and the establishment of a low cost offshore capability. It is therefore pleasing that we have increased revenues over prior year and seen only a relatively modest reduction in profitability.
Our Health and Social Care business has enjoyed a great year and built on a strong start to deliver revenue and gross profit growth of almost 30% over prior year. This has led to a substantial improvement in adjusted operating profits. The business has maintained good momentum during the second half and over the course of the year has increased the weekly gross profit run rate by 25% and the volume of weekly hours supplied by over 23%. We also opened a new branch in the second half of the year.
Our Health and Social Care business accounted for approximately two thirds of all operating profit within our Healthcare recruitment operations.
As reported in our Interim statement, our Education recruitment business had seen increased revenues but reduced gross profit and this has remained the case for the full year. Revenues in this area were up 3% but gross profit was down 3%, leading to reduced operating profits over prior year.
Performance within this business shows distinct variances with our Regional offices seeing increased operating profits but our largest London facing operation materially down. This has impacted Permanent Fee Income as the majority comes from supply into the London and Home Counties areas.
Demand continues to outstrip supply despite the budget pressures faced by schools and there remains an acute shortage of qualified teachers. This shortage is evidenced by our successful appointment as one of only six suppliers to a major international recruitment framework being run by the Department for Education. This framework has been developed to try and recruit 1,200 additional Maths and Science teachers over the next 4 years. This initiative is set to deliver a positive impact on our Permanent Fee Income and builds on the investment we have made in prior years in our International sourcing capabilities.
We continue to develop our branch network where appropriate opportunity is identified and have taken action to strengthen management in London facing operations that has started to make a positive impact in the current year.
Our Criminal Justice business delivered a material improvement over prior year with revenues up 50% and gross profits 23% higher. This led to a substantial improvement in its operating profits.
As previously reported, this business has benefitted from a significant contract win for the supply of temporary probation staff towards the end of the prior year. Delivery into the contract has successfully continued to build throughout the year and has helped contribute towards the significant improvement in its revenues and profit over prior year.
Outlook
The balanced and diversified nature of the Group continues to provide growth opportunities. We anticipate that opportunities available to our Education, Health and Social Care and Domiciliary Care businesses in particular will offset current challenges in the area of NHS supply. We therefore continue to be confident about our future.
John Foley Andrew Church
Non Executive Chairman Chief Executive Officer
Hot Features
Premium
Consolidated statement of comprehensive income
For the year ended 30 September 2017
2017 2016
Before Amortisation, Before Amortisation,
Amortisation, share based Amortisation, share based
share based payments share based payments
payments and payments and
and contingent and contingent
contingent consideration Total contingent consideration Total
consideration (see note (unaudited) consideration (se note (audited)
(unaudited) 6) (audited) 6))
(unaudited) (audited)
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------- ------ ---------------- --------------- -------------- ---------------- --------------- ------------
Continuing
operations
Revenue 4 80,152 - 80,152 69,234 - 69,234
Cost of sales (60,493) - (60,493) (50,593) - (50,593)
----------------- ------ ---------------- --------------- -------------- ---------------- --------------- ------------
Gross profit 19,659 - 19,659 18,641 - 18,641
Administrative
expenses (15,669) (1,018) (16,687) (15,026) (665) (15,691)
Operating
profit 3,990 (1,018) 2,972 3,615 (665) 2,950
Finance costs (95) - (95) (77) - (77)
----------------- ------ ---------------- --------------- ---------------- --------------- ------------
Profit before
taxation 3,895 (1,018) 2,877 3,538 (665) 2,873
Tax charge (724) - (724) (740) - (740)
----------------- ------ ---------------- --------------- -------------- ---------------- --------------- ------------
Total
comprehensive
income for the
year,
net of tax,
attributable
to owners of
the
parent 3,171 (1,018) 2,153 2,798 (665) 2,133
----------------- ------ ---------------- --------------- -------------- ---------------- --------------- ------------
Earnings per Pence Pence Pence Pence Pence Pence
share:
- Basic 5 2.56 (0.82) 1.74 2.25 (0.54) 1.71
- Diluted 5 2.53 (0.82) 1.71 2.22 (0.53) 1.69
----------------- ------ ---------------- --------------- -------------- ---------------- --------------- ------------
Consolidated statement of financial position
As at 30 September 2017
30 September 30 September
2017 2016
(unaudited) (audited)
Note GBP'000 GBP'000
------------------------------ ------ ---- --------------- ---- ---------------
Assets
Non-current assets
Intangible assets 8,907 8,954
Property, plant and
equipment 1,153 829
Total non-current
assets 10,060 9,783
Current assets
Trade and other receivables 14,705 12,842
Inventories 269 222
Cash and cash equivalents 8 579 342
------------------------------ ------ ---- --------------- ---- ---------------
Total current assets 15,553 13,406
------------------------------ ------ ---- --------------- ---- ---------------
Total assets 25,613 23,189
------------------------------ ------ ---- --------------- ---- ---------------
Liabilities
Current liabilities
Trade and other payables (6,880) (5,807) Corporation tax payable (839) (1,127) Other financial liabilities (2,915) (2,745) Total current liabilities (10,634) (9,679) Total net assets 14,979 13,510 ------------------------------ ------ ---- --------------- --------------- Capital and reserves attributable to equity owners of the company Called up share capital 7 1,256 1,256 Share premium account 202 202 Merger reserve 2,772 2,772 Reverse acquisition reserve (12,268) (12,268) Retained earnings 23,017 21,548 -------------------------- --- ---------- ---------- Total equity 14,979 13,510 -------------------------- --- ---------- ----------
Consolidated statement of cash flows
As at 30 September 2017
2017 2016
(unaudited) (audited)
Note GBP'000 GBP'000
--------------------------------------- ------ -------------- ------------
Operating activities
Profit before tax 2,877 2,873
Adjustments to reconcile profit
before tax to net cash flows:
Depreciation and amortisation 453 381
Share based payments 63 63
Finance costs 95 77
Increase in inventories (47) (119)
Increase in trade and other
receivables (1,863) (882)
Increase/(decrease) in trade
and other payables 1,139 (72)
Cash generated from operations 2,717 2,321
Corporation tax paid (1,012) (466)
Cash flows from operating activities 1,705 1,855
--------------------------------------- ------ -------------- ------------
Investing activities
Acquisitions, net of cash acquired - (1,123)
Deferred consideration paid (66) (805)
Purchase of property, plant
and equipment (730) (424)
Net cash flows used in investing
activities (796) (2,352)
--------------------------------------- ------ -------------- ------------
Financing activities
Interest paid (95) (77)
Dividend paid (435) (374)
Net purchase of shares held
in treasury (312) (276)
Net cash flows used in financing
activities (842) (727)
--------------------------------------- ------ -------------- ------------
Increase/(decrease) in cash
and cash equivalents 67 (1,224)
Cash and cash equivalents at
beginning of the year (2,403) (1,179)
--------------------------------------- ------ -------------- ------------
Cash and cash equivalents at
end of the year 8,9 (2,336) (2,403)
--------------------------------------- ------ -------------- ------------
Notes to the preliminary financial statements
For the year ended 30 September 2017
1 Financial information
The preliminary financial information for the full year ended 30 September 2017 does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.
The financial information for the year ended 30 September 2017 is unaudited. The comparative figures for the year ended 30 September 2016 are audited but are not the full statutory accounts for the year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors have reported on those accounts; their reports were unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under Section 498 of the Companies Act 2006.
2 Basis of preparation and accounting policies
The preliminary financial statements have been prepared using the recognition and measurement principles of IFRS as endorsed for use in the European Union.
The accounting policies adopted in the preparation of this preliminary financial information are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 30 September 2016 and no new standards or interpretations that have come into effect in the year have had a material impact on the results of the business.
3 Adjustments in respect of prior period results
The acquisition of subsidiaries in prior years gives rise to an obligation to pay contingent consideration based on future earnings. The Group is therefore required to make an estimate at each year end of the amount of contingent consideration payable and to reflect this within the financial statements. In the prior year, the Group accounted for contingent consideration on the basis of cash payments made in the year. In the year ended 30 September 2017 the Group has accounted for contingent consideration on an accruals basis. As a consequence, the results for the year ended 30 September 2016 include a prior year adjustment to increase contingent consideration payable by GBP541,000 and to decrease profit for that financial year by the same amount. The retained earnings have decreased by GBP541,000 and trade and other payables has increased by the same amount as at 30 September 2016. The effect on the basic earnings per share is to decrease it from 2.15p to 1.71p. The adjustment reflects timing differences only and will have no impact on the overall charge in respect of contingent consideration for the acquisitions concerned.
4 Segmental analysis
The Group's primary format for reporting segment information is by business segment, being by type of service supplied. The operating divisions are organised and managed by reporting segment where applicable and by divisions within a reporting segment where necessary. This information is provided to the Board of Directors.
The Outsourcing segment provides services to the Domiciliary Care and Security sectors.
The Recruitment segment provides recruitment services to the Healthcare, Education and Police sectors.
2017 Outsourcing Recruitment Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ------------- ------------- ------------- -----------
Revenue 17,225 62,927 - 80,152
------------- ------------- ------------- -----------
Segment expense (16,608) (57,927) (1,627) (76,162)
Operating profit/(loss)
before amortisation,
share based payment
expense and contingent
consideration 617 5,000 (1,627) 3,990
Amortisation,
share based payment
expense and contingent
consideration (52) (934) (32) (1,018)
Operating profit/(loss) 565 4,066 (1,659) 2,972
Finance costs (31) (64) - (95)
---------------------------- ------------- ------------- ------------- -----------
Profit/(loss)
before tax 534 4,002 (1,659)1 2,877
---------------------------- ------------- ------------- ------------- -----------
Statement of
financial position
--------------------------- ------------- ------------- ------------- -----------
Assets 6,935 17,554 1,124 25,613
Liabilities (3,018) (7,025) (591) (10,634)
---------------------------- ------------- ------------- ------------- -----------
Net assets 3,917 10,529 533 14,979
---------------------------- ------------- ------------- ------------- -----------
Other
Capital expenditure 99 139 492 730
Depreciation 145 100 161 406
Amortisation 42 5 - 7
---------------------------- ------------- ------------- ------------- -----------
The majority of the Group's customers and assets are located in the UK and therefore it does not report by geographical location. There is no inter-segment revenue.
4 Segmental analysis (continued)
2016 Outsourcing Recruitment Unallocated Total
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ------------- ------------- ------------- ----------
Revenue 14,786 54,448 - 69,234
------------- ------------- ------------- ----------
Segment expense (14,646) (49,658) (1,315) (65,619)
Operating profit/(loss)
before amortisation,
share based payment
expense and contingent
consideration 140 4,790 (1,315) 3,615
Amortisation,
share based payment
expense and contingent
consideration (52) (581) (32) (665)
Operating profit/(loss) 88 4,209 (1,347) 2,950
Finance costs (23) (54) - (77)
---------------------------- ------------- ------------- ------------- ----------
Profit/(loss)
before tax 65 4,155 (1,347)1 2,873
---------------------------- ------------- ------------- ------------- ----------
Statement of
financial position
--------------------------- ------------- ------------- ------------- ----------
Assets 5,904 16,478 807 23,189
Liabilities (2,907) (6,262) (510) (9,679)
---------------------------- ------------- ------------- ------------- ----------
Net assets 2,997 10,216 297 13,510
---------------------------- ------------- ------------- ------------- ----------
Other
Capital expenditure 63 1,245 305 1,613
Depreciation 144 82 108 334
Amortisation 42 5 - 47
---------------------------- ------------- ------------- ------------- ----------
[1] The profit for each operating segment does not include holding company director costs, group legal costs, central share based payment charges or a share of central property costs.
5 Earnings per share
The calculation of earnings per share is based on a weighted average number of shares in issue during the year of:
Dilutive effect
of
Basic share options Diluted
and shares
to be issued
30 September
2017 123,802,686 1,800,658 125,603,344
30 September
2016 124,509,189 1,834,340 126,343,529
---------------- ------------- ----------------- -------------
Basic earnings per share are calculated by dividing the net profit for the year attributable to the equity holders of the parent by the weighted average number of ordinary shares outstanding during the year excluding ordinary shares purchased by the Company and held as treasury shares.
5 Earnings per share (continued)
Additional disclosure is also given in respect of adjusted earnings per share before amortisation of intangible assets, share based payments and contingent consideration as the directors believe this gives a more accurate presentation of maintainable earnings.
Year ended 30 September 2017 Basic Diluted
GBP'000 GBP'000
----------------------------------------------- --------- ---------
Profit for the year 2,153 2,153
Amortisation, share based payment
expense and contingent consideration:
Amortisation of intangible assets 47 47
Share based payment expense 63 63
Contingent consideration 908 908
Profit before amortisation, share
based payments and contingent consideration 3,171 3,171
------------------------------------------------ --------- ---------
Pence Pence
----------------------------------------------- --------- ---------
Earnings per share 1.74 1.71
Amortisation, share based payment
expense and contingent consideration:
Amortisation of intangible assets 0.04 0.04
Share based payment expense 0.05 0.05
Contingent consideration 0.73 0.73
Adjusted earnings per share before
amortisation, share based payments
and contingent consideration 2.56 2.53
------------------------------------------------ --------- ---------
6 Amortisation, share based payments and contingent consideration
2017 2016
GBP'000 GBP'000
--------------------------------- ---------- ----------
Amortisation of intangible
assets 47 47
Share based payments 63 63
Contingent consideration/costs
of acquisitions 908 555
1,018 665
---------- ----------
7 Called up share capital
30 30 30 30
September September September September
2017 2017 2016 2016
Number Number
'000 GBP'000 '000 GBP'000
---------------------- ------------ ------------ ------------ ------------
Allotted, issued
and fully paid:
New Ordinary shares
of 1p each 125,575 1,256 - -
Ordinary shares
of 1p each - - 125,575 1,256
----------------------- ------------ ------------ ------------ ------------
125,575 1,256 125,575 1,256
------------ ------------ ------------ ------------
Movements in issued share capital
Consolidated New
Ordinary ordinary Consolidated ordinary New
shares Ordinary shares ordinary shares ordinary
of 1p shares of GBP20 shares of 1p Shares
each of each of GBP20 each of 1p
Number 1p Number each Number each
'000 each '000 GBP'000 '000 GBP'000
GBP'000
------------------ ------------ ------------ -------------- ---------------- ----------- ------------
Issued:
In issue at
1 October 2016 125,575 1,256 - - - -
Consolidation
(see below) (125,575) (1,256) 63 1,256 - -
Subdivision
(see below) - - (63) (1,256) 125,575 1,256
------------------- ------------ ------------ -------------- ---------------- ----------- ------------
In issue at
30 September
2017 - - - - 125,575 1,256
------------------- ------------ ------------ -------------- ---------------- ----------- ------------
During August 2017, the Company carried out a share reorganisation in order to reduce the number of small shareholders and offer those shareholders holding 2,000 or less shares in the Company an option to sell their holdings back to the Company.
On 15 August, all the 1 pence Existing Ordinary Shares of the Company were consolidated into one GBP20 Consolidated Ordinary Share on the basis of one Consolidated Ordinary Share for each 2,000 Existing Ordinary Shares. The Company offered to purchase any resulting fractional entitlements to the Consolidated Shares from the existing shareholders.
After completion of the sale and purchase of the fractional entitlements from the small shareholders, these Consolidated Shares of GBP20 each were subdivided into 2,000 New Ordinary Shares of 1 pence each. These New Ordinary Shares have the same rights and are subject to the same restrictions as the existing Ordinary 1 pence shares before the reorganisation.
As a result of this reorganisation, the Company purchased 154,656 shares for a total consideration of GBP36,727 which represented 1,047 small shareholders from the pre-reorganisation number of 1,203.
During the year the Company acquired 1,270,946 of its own shares for GBP312,311 (including the 154,656 mentioned above) (2016: acquired 1,149,038 for GBP276,376) and transferred none of its own shares at nominal value (2016: 250,000). These amounts have been deducted from retained earnings within shareholders' equity. The number of shares held as "treasury shares" at the year end was 2,630,084 which represented 2.09% of the called up share capital of the Company (2016: 1,359,138 representing 1.08%). The Company has the right to re-issue these shares at a later date. The maximum number of treasury shares held during the year was 2,630,084 (2016: 1,359,138).
8 Cash and cash equivalents
30 September 30 September
2017 2016
GBP'000 GBP'000
---------------------------------- -------------- --------------
Cash available on demand 579 342
Invoice discounting facilities (2,915) (2,745)
(2,336) (2,403)
-------------- --------------
Cash and cash equivalents at
beginning of year (2,403) (1,179)
----------------------------------- -------------- --------------
Net increase/(decrease) in cash
and cash equivalents 67 (1,224)
----------------------------------- -------------- --------------
9 Net debt
As at As at
1 Non 30
October Cash cash September
2016 flow movement 2017
2017 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- ---------- --------- ------------ ------------
Cash and cash equivalents (2,403) 67 - (2,336)
----------------------------- ---------- --------- ------------ ------------
10 Annual General Meeting
The Annual General Meeting of Servoca Plc will be held at the Company's head office at Audrey House, 16-20 Ely Place, London, EC1N 6SN on 30 January 2018 at 2pm. It is expected that the Report and Accounts along with Notice of Meeting will be mailed to shareholders prior to 30 December 2017. The Financial Statements will be sent to the Registrar following the Annual General Meeting.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR TBBMTMBIBTIR
(END) Dow Jones Newswires
December 12, 2017 02:00 ET (07:00 GMT)
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