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TPG Tp Group Plc

2.20
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Share Name Share Symbol Market Type Share ISIN Share Description
Tp Group Plc LSE:TPG London Ordinary Share GB0030591514 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% 2.20 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

TP Group PLC Interim Report for six months ended 30 June 2016 (6213J)

13/09/2016 7:00am

UK Regulatory


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RNS Number : 6213J

TP Group PLC

13 September 2016

13 September 2016

TP Group plc

("TP Group" or the "Company" or the "Group")

Interim Report for the six months ended 30 June 2016

Strategy delivering improving profitability and clear growth prospects

TP Group (AIM: TPG), the specialist technology, engineering and managed solutions group, today announces its interim results for the six months ended 30 June 2016.

Financial highlights

   --     Revenue up 13% to GBP9.4m (H1 2015: GBP8.3m) 
   --     Group adjusted EBITDA(1) improved to breakeven (H1 2015: loss of GBP1.0m) 
   --     Net cash of GBP0.7m generated from operations (H1 2015: GBP2.0m consumed) 
   --     Improved cash balance of GBP7.5m (31 December 2015: GBP7.0m) 

Operational highlights

-- Strategy to operate throughout the engineering life cycle with four interlinked business units is delivering results and growth opportunities

-- TPG Maritime revenue up 40% compared to H1 2015 with a growing customer base and a wider offering to our current partners

-- TPG Engineering is seeing accelerated order capture, improving backlog and growing pipeline, driven by the business unit's new management team

-- TPG Managed Solutions appointed to four Government service framework agreements with resource under contract

-- TPG Design & Technology successfully repositioned as a technical consulting and design services business

   --     Continuing to achieve cost efficiencies in project delivery and administration 
   --     Appointment of Derren Stroud as Chief Financial Officer in March 2016 

Outlook

-- Pipeline of future sales opportunities has grown to c. GBP150m, including two significant single source contracts due to begin negotiations with the Ministry of Defence (MoD) totalling c. GBP50m.

-- Strong H1 order capture by TPG Engineering at 40% above that achieved in H1 2015. This has created an order backlog of c. 4 months' activity (31 Dec 2015: c. 2 months) scheduled to be delivered before year-end

-- Significant new opportunities in the UK, Europe, Far East and Australia, all with long-term business prospects

-- Group performance provides confidence that the business will trade in line with 2016 market expectations

Commenting on the results, Chief Executive Officer, Phil Cartmell said:

"TP Group has delivered strong results in the first half of 2016. We have moved from loss making to breakeven with positive cash generation. We believe that further progress will follow in H2, and we expect to deliver significantly improved results in line with market forecasts.

"Our business operates in growing markets and has developed a strong reputation with our customers as a supplier of critical end-to-end engineering services with a pipeline of opportunities of c GBP150m.

"Operational management has been strengthened to align with our services and markets leading to improved project and business development performance.

"The Group, at last, is free of the obligations of legacy Oil & Gas R&D ventures. Costs have been controlled and cash collection enhanced providing a much more stable platform for future growth.

"In line with our acquisition strategy to complement both our services and market access, we are actively pursuing a number of opportunities that are expected to be accretive to earnings.

"After a strong start to the second half of the year, the Board is confident that the transformed business of TPG will deliver profit at the adjusted EBITDA(1) level in line with market expectations for 2016 and onward to sustainable profitability."

Notes

(1) Adjusted EBITDA is defined as operating profit adjusted to add back depreciation of property, plant and equipment, amortisation and impairment of acquired intangible assets and any other acquisition-related charges, share based payment charges and exceptional items. Exceptional items are those items believed to be exceptional in nature by virtue of their size and or incidence. Exceptional items in the period to 30 June 2016 comprise termination costs of GBP231k (2015: Exceptional items in 2015 comprised restructuring costs of GBP976k, including impairment of fixed assets GBP493k and termination costs of GBP146k).

For further information, please contact:

 
TP Group Plc 
Phil Cartmell, Chief Executive Officer   01753 285 810 
Derren Stroud, Chief Financial Officer 
 www.tpgroup.uk.com 
Cenkos 
Stephen Keys / Mark Connelly 
 www.cenkos.com                          020 7397 8980 
Vigo Communications 
Jeremy Garcia / Fiona Henson             020 7830 9700 
www.vigocomms.com 
 

NOTES TO EDITORS

TP Group is a group of innovative UK based engineering companies, supplying technologies and support to global markets. TP Group designs and develops advanced technologies, engineers complex equipment and systems, and provides support throughout their operational life. The Company's shares have been traded on AIM since July 2001.

Chief Executive's Review

The Group strategy declared in past reports has now been implemented with specific improvement initiatives that have together delivered the positive results announced today. The Group will continue on this path with a balanced business that:

   --     continues to improve operational effectiveness leading to higher profitability; 

-- focuses on major accounts to maximise value and expand service offerings within established relationships;

-- links the business units to share capability most efficiently and add value through cross-selling; and

   --     enhances its product offering and market reach through acquisition 

Financial Overview

The Group has delivered a move into profitability at an adjusted EBITDA(1) level in the first half, whilst achieving growth in our core markets.

Revenue grew to GBP9.4m (H1 2015: GBP8.3m). This is primarily due to a strong performance by TPG Maritime with effective conversion of a high value order backlog at the start of the year. Order book values fluctuate in the defence sector due to the infrequent timing of major contract awards. Recent announcements include the intent by the UK MoD to enter into two single source negotiations for supply and service contracts worth circa GBP50m over eight years. These are expected to be entered into in the second half or early in 2017, and build confidence in future workload.

Revenues in TPG Engineering were slightly down due to issues in the energy sector leading to a slow start to the year and weakness in the opening order book. Management focus on business development methods and personnel has returned a much improved performance.

TP Group's strong order intake in H1 2016 leaves the business in much better shape for the second half of the year, in line with our normal business profile which is typically weighted towards higher revenues in the second half.

The Group's overall revenue improvement and continued focus on cost control has resulted in this growth feeding directly into adjusted EBITDA(1) . Group adjusted EBITDA(1) therefore improved by GBP1.0m compared with the equivalent period last year to achieve breakeven (2015: GBP1.0m loss) in line with our objective to report profitability at an adjusted EBITDA(1) level in 2016.

The Group continues to develop new opportunities and has an active sales pipeline of circa GBP150m.

Central costs remained flat in the first half at GBP0.6m after exceptional items (H1 2015: GBP0.6m). All costs associated with supporting the four business units are fully allocated to them.

The Group cash balance at 30 June 2016 was GBP7.5m (31 December 2015: GBP7.0m). Cash generated in the first half from operations was GBP0.7m (H1 2015: GBP2.0m loss), reflecting our underlying focus on generating improved operational cashflow. Management expects to retain a healthy cash balance at the year end, in line with market forecasts.

TPG Maritime

The Company has built on its long standing relationship with the MoD with the award of an extension to the Submarine Air Purification equipment support contract in March 2016. This 12-month extension to an existing ten-year agreement is valued at an estimated GBP1.5 million over the period.

The business outlook is strengthened with the MoD's intention to enter single source negotiations on two contracts announced in July and August for submarine equipment supply and support, together worth c. GBP50m. These negotiations demonstrate the long term value of our approach to through-life support on major equipment programmes. In addition, we have extended our global reach with new and established customers in South East Asia and in Europe as reported in recent contract announcements.

TPG Engineering

The Group took steps during the first half of the year to build a new management team and to continue to support business improvement initiatives. This included the appointment of Tony Clowrey as Head of Engineering and Nick Pilditch as Sales Director. Both Tony and Nick have a wealth of experience in the sector and have brought this to bear very quickly, delivering rapid improvement in order capture and overall business efficiency.

The Group has invested in the Dukinfield site, with the installation of an advanced paint line facility. This allows the business to bring previously subcontracted finishing work in-house and to add high quality finishing to our extensive fabrication offer. We can now offer high added-value services across a wide range of markets and applications. Further investment in the factory was made as part of our continuous improvement campaign to improve product quality, working environment and reduce costs.

The business has also built upon its relationship with the Nuclear Advanced Manufacturing Research Centre (NAMRC) to enhance technical and manufacturing methods and develop new service offerings into markets such as nuclear power. This work is already generating additional enquiries and business development activity.

TPG Design & Technology

The long standing relationship with Spirax-Sarco Engineering plc remains strong and TPG has delivered the final assembly and testing of a batch of pre-production units for end-user trials.

Work on the European Cryohub programme continues and the next delivery of the American gas let-down expander project is expected in the second half of this year.

The technical team has also been responding to numerous enquiries for advanced turbomachines, with discussions in progress for renewable energy, upstream production, distribution and power applications in Europe and Australia.

TPG Managed Solutions

The Managed Solutions team has built upon its position within the UK Government's Functional and Technical Services framework (FATS5) to develop a significant pipeline of opportunities to place specialist resources into technical programmes in defence and other public programmes. This was rewarded with the first resource contract being placed during H1 2016, and a number of other contracts currently in negotiation. These contracts are significant as they place TPG resources within the customer site operations and provides a very effective link to future business opportunities.

During the period, TPG has also been admitted to other frameworks including:

   --     Niteworks, the MoD-Industry technical partnership; 

-- The G_Cloud procurement framework to connect government bodies with support in cloud technology and other specialist services for digital projects;

   --     The R_Cloud framework for science and technology research; and 

-- Bluelightworks, the community supporting procurement and process improvement for the emergency services.

Strategy and Outlook

The Group is now in an extremely robust position with two major defence contracts about to enter negotiation for which TPG is, we understand, the sole supplier. Securing both contracts would lead to even greater long term revenue visibility for TPG Maritime. In addition, we are building momentum in resource provision to defence customers through TPG Managed Solutions whilst pursuing equipment service opportunities with both defence and commercial customers.

TPG Engineering continues to develop its market position with enhanced capability and competitive positioning leading to an accelerated customer conversion rate. The appointment of a new management team has resulted in further strategic progress with qualification for large-scale projects and opportunities in nuclear and conventional power facilities. In the energy markets, TPG Design & Technology is working on a growing pipeline of opportunities.

The pipeline of future business reflects our increasingly productive collaboration with major partners to open new opportunities in global, high value sectors. In addition, all business units are increasing their exposure to new activities through increased cross-selling and referrals across the Group, enabling all four business units to take advantage of TPG's world class customer base.

The overall result is a more capable, focused and coordinated business that is demonstrating its ability to deliver growth and move into profitability whilst attracting a sales pipeline of future business opportunities, currently valued at approximately GBP150m. The Board is confident that this momentum and strategic focus will enable the Group to deliver on its objectives and greatly enhance shareholder value.

Phil Cartmell

Chief Executive Officer

12 September 2016

Condensed Consolidated Statement of Comprehensive Income

 
                                    Unaudited     Unaudited        Audited 
                                   Six months    Six months     Year ended 
                                        ended         ended    31 December 
                                      30 June       30 June           2015 
                                         2016          2015 
                                      GBP'000       GBP'000        GBP'000 
 
 
 Revenue                                9,363         8,340         20,446 
 
 Cost of sales                        (6,878)       (6,161)       (14,834) 
===============================  ------------  ------------  ------------- 
 
 Gross profit                           2,485         2,179          5,612 
===============================  ------------  ------------  ------------- 
 
 Distribution costs(1)                  (188)      (143)(2)          (304) 
 Research and development 
  costs                                  (12)          (51)           (76) 
 Administrative expenses              (3,062)       (4,601)        (7,527) 
===============================  ------------  ------------  ------------- 
 
 Operating (loss)                       (777)       (2,616)        (2,295) 
 
 Adjusted EBITDA(2)                        12         (965)             45 
 Depreciation, amortisation 
  and impairment                        (540)         (686)        (1,328) 
 Exceptional items                      (231)         (943)          (976) 
 Share based payments                    (18)          (22)           (36) 
 Operating loss                         (777)       (2,616)        (2,295) 
-------------------------------  ------------  ------------  ------------- 
 
 Finance (cost)/income                   (69)             6             77 
===============================  ------------  ------------  ------------- 
 
 Loss before income 
  tax                                   (846)       (2,610)        (2,218) 
 
 Income tax credit                         70            70            311 
===============================  ------------  ------------  ------------- 
 
 Total comprehensive 
  loss for the period 
  attributable to shareholders          (776)       (2,540)        (1,907) 
===============================  ============  ============  ============= 
 
 Loss per share expressed               Pence         Pence          Pence 
  in pence per share 
 Basic and diluted 
  loss per share                       (0.13)        (0.60)         (0.45) 
===============================  ============  ============  ============= 
 
 

All results relate to continuing activities.

(1) The presentation of the Distribution costs and Administrative expenses for the six months to 30 June 2015 have been reclassified to be consistent with the current year presentation and that presented in audited financial statements of the year to 31 December 2015. The overall reported loss for the period has not changed.

(2) Adjusted EBITDA is defined as operating profit adjusted to add back depreciation of property, plant and equipment, amortisation and impairment of acquired intangible assets and any other acquisition-related charges, share based payment charges and exceptional items. Exceptional items are those items believed to be exceptional in nature by virtue of their size and or incidence. Exceptional items in the period to 30 June 2016 comprise termination costs of GBP231k (2015: Exceptional items in 2015 comprised restructuring costs of GBP976k, including impairment of fixed assets GBP493k and termination costs of GBP146k).

Condensed Consolidated Statement of Financial Position

 
                                 Unaudited   Unaudited        Audited 
                                   30 June     30 June    31 December 
                                      2016        2015           2015 
                                   GBP'000     GBP'000        GBP'000 
==============================  ==========  ==========  ============= 
 ASSETS 
 Non-current assets 
  Goodwill                           4,953       5,036          4,953 
  Other intangible assets            9,054       9,919          9,514 
  Property, plant and 
   equipment                           693         554            560 
==============================  ==========  ==========  ============= 
                                    14,700      15,509         15,027 
==============================  ==========  ==========  ============= 
 Current assets 
  Inventories                          136         143            169 
  Trade and other receivables        5,871       6,914          6,386 
  Derivative financial 
   assets                                -           -             70 
  Taxation recoverable                  79         149             66 
  Cash and cash equivalents          7,482       6,623          7,005 
==============================  ==========  ==========  ============= 
                                    13,568      13,829         13,696 
==============================  ==========  ==========  ============= 
 Total assets                       28,268      29,338         28,723 
==============================  ==========  ==========  ============= 
 LIABILITIES 
 Current liabilities 
  Trade and other payables         (6,338)     (6,553)        (5,756) 
                                   (6,338)     (6,553)        (5,756) 
==============================  ==========  ==========  ============= 
 Non-current liabilities 
  Deferred taxation                (1,636)     (1,985)        (1,713) 
  Provisions                         (894)     (1,289)        (1,096) 
==============================  ==========  ==========  ============= 
                                   (2,530)     (3,274)        (2,809) 
==============================  ==========  ==========  ============= 
 Total liabilities                 (8,868)     (9,827)        (8,565) 
==============================  ==========  ==========  ============= 
 Net assets                         19,400      19,511         20,158 
==============================  ==========  ==========  ============= 
 EQUITY 
  Share capital                     42,246      42,246         42,246 
  Share premium                     13,769      13,769         13,769 
  Capital redemption 
   reserve                             575         575            575 
  Own shares held by 
   the Employee Benefit 
   Trust                             (561)       (561)          (561) 
  Share-based payments 
   reserve                           1,192       1,160          1,174 
  Retained earnings               (37,821)    (37,678)       (37,045) 
==============================  ==========  ==========  ============= 
 Total equity                       19,400      19,511         20,158 
==============================  ==========  ==========  ============= 
 

Condensed Consolidated Statement of Changes in Equity

 
 
                                                              Own 
                                                Capital      shares   Share-based 
                         Share      Share      redemption     held      payments    Retained 
                         capital    premium     reserve      by EBT     reserve      earnings    Total 
 Six months             GBP'000    GBP'000      GBP'000     GBP'000     GBP'000      GBP'000    GBP'000 
  to 30 June 
  2016 
---------------------  ---------  ---------  ------------  --------  ------------  ----------  --------- 
 Balance at 
  1 January 
  2016                    42,246     13,769           575     (561)         1,174    (37,045)     20,158 
 IFRS 2 share 
  option charge                -          -             -         -            18           -         18 
=====================  =========  =========  ============  ========  ============  ==========  ========= 
 Total comprehensive 
  loss for 
  the period                   -          -             -         -             -       (776)      (776) 
=====================  =========  =========  ============  ========  ============  ==========  ========= 
 Balance at 
  30 June 2016            42,246     13,769           575     (561)         1,192    (37,821)     19,400 
=====================  =========  =========  ============  ========  ============  ==========  ========= 
 Six months 
  to 30 June 
  2015 
=====================  ================================================================================= 
 Balance at 
  1 January 
  2015                    42,246     13,769           575     (561)         1,138    (35,138)     22,029 
 IFRS 2 share 
  option charge                -          -             -         -            22           -         22 
---------------------  ---------  ---------  ------------  --------  ------------  ----------  --------- 
 Total comprehensive 
  loss for 
  the period                   -          -             -         -             -     (2,540)    (2,540) 
=====================  =========  =========  ============  ========  ============  ==========  ========= 
 Balance at 
  30 June 2015            42,246     13,769           575     (561)         1,160    (37,678)     19,511 
=====================  =========  =========  ============  ========  ============  ==========  ========= 
 
   Year to 31 
   December 
   2015 
=====================  ================================================================================= 
 Balance at 
  1 January 
  2015                    42,246     13,769           575     (561)         1,138    (35,138)     22,029 
 IFRS 2 share 
  option charge                -          -             -         -            36           -         36 
=====================  =========  =========  ============  ========  ============  ==========  ========= 
 Total comprehensive 
  loss for 
  the year                     -          -             -         -             -     (1,907)   (1,,907) 
 Balance at 
  31 December 
  2015                    42,246     13,769           575     (561)         1,174    (37,045)     20,158 
=====================  =========  =========  ============  ========  ============  ==========  ========= 
 

Condensed Consolidated Statement of Cash Flows

 
                                    Unaudited     Unaudited 
                                   Six months    Six months        Audited 
                                        ended         ended     Year ended 
                                      30 June       30 June    31 December 
                                         2016          2015           2015 
                                      GBP'000       GBP'000        GBP'000 
===============================  ============  ============  ============= 
 Operating activities 
 Loss before income 
  tax                                   (846)       (2,610)        (2,218) 
 Adjustments for: 
   Depreciation                            81           265            421 
   Amortisation                           459           421            907 
   Loss on disposal of 
    fixed assets                            -             -            493 
   Finance cost/(income)                   69           (6)           (77) 
   Impairment of property, 
    plant and equipment                     -           557              - 
   Share-based payment 
    expense                                18            22             36 
   (Increase)/decrease 
    in inventories                         33          (60)           (86) 
   Decrease/(increase) 
    in trade and other 
    receivables                           496           687          1,098 
   (Decrease)/Increase 
    in trade and other 
    payables                              582       (1,188)        (1,876) 
   (Decrease) in provisions             (202)          (66)          (259) 
===============================  ============  ============  ============= 
                                          690       (1,978)        (1,561) 
 
 Income tax received/(paid)                 -          (13)             64 
===============================  ============  ============  ============= 
 Net cash generated 
  from/(used in) operating 
  activities                              690       (1,991)        (1,497) 
===============================  ============  ============  ============= 
 
   Investing activities 
 Purchase of subsidiary, 
  net of cash acquired                      -         (886)          (886) 
 Interest received                          1             6              8 
 Purchase of property, 
  plant and equipment                   (214)          (65)          (204) 
 Proceeds from sale 
  of property, plant 
  and equipment                             -             -             40 
===============================  ============  ============  ============= 
 Net cash used in investing 
  activities                            (213)         (945)        (1,042) 
===============================  ============  ============  ============= 
 
   Financing activities 
 Repayment of hire purchase 
  liabilities                               -          (10)           (25) 
 Net cash from financing 
  activities                                -          (10)           (25) 
===============================  ============  ============  ============= 
 Net increase/(decrease) 
  in cash and cash equivalents            477       (2,946)        (2,564) 
 Cash and cash equivalents 
  at beginning of period                7,005         9,569          9,569 
                                               ============ 
 Cash and cash equivalents 
  at end of period                      7,482         6,623          7,005 
===============================  ============  ============  ============= 
 

Notes to the Condensed Consolidated Interim Financial Statements

1. Nature of operations and general information

The principal activities of TP Group plc and its subsidiaries (the "Group") comprise:

TPG Maritime - activities include the provision of air purification equipment for submarines including oxygen/hydrogen generation and purification, air handling and distribution systems.

TPG Design and Technology - specialises in the design and development of high-speed turbomachinery. Innovative compressors and expander generators use patented technologies.

TPG Engineering - activities include the manufacture of heat exchange equipment used in the heating and cooling of large scale industrial processes and other fabricated structures

TPG Managed Solutions - services to major organisations through prime contracting and provision of specialist resources

TP Group plc (the "Parent Company") is the Group's ultimate parent company which is incorporated and domiciled in the United Kingdom. The address of the registered office of the Company is Cody Technology Park, Old Ively Road, Farnborough, Hampshire, GU14 0LX. The Parent Company's shares are listed on the Alternative Investment Market of the London Stock Exchange.

The condensed consolidated interim financial statements are presented in pounds sterling, which is also the functional currency of the Parent Company, and all values are rounded to the nearest thousand pounds except when otherwise indicated.

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the

Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2015, prepared under IFRS as adopted by the EU, have been delivered to the Registrar of Companies. The auditor's report on the 2015 financial statements was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under Section 498(2) or Section 498(3) of the Companies Act 2006.

The condensed consolidated interim financial statements were approved for issue by the Board of Directors on 12 September 2016.

2. Basis of preparation

These condensed consolidated interim financial statements are for the six months ended 30 June 2016. They have been prepared following the principal accounting policies and methods of computation set out in the Group's Annual Report and Accounts for the year ended 31 December 2015.

These condensed consolidated interim financial statements have been prepared under the historical cost convention using accounting policies consistent with International Financial Reporting Standards (IFRS) as adopted by the European Union. The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest annual audited financial statements. While the financial figures included in this half-yearly report have been computed in accordance with IFRS applicable to interim periods, this half-yearly report does not contain sufficient information to constitute an interim financial report as that term is defined in IAS 34.

Going concern

The Directors are satisfied that the Group has adequate resources to continue in business for the foreseeable future, and accordingly continue to adopt the going concern basis in preparing the accounts.

Restatement of comparative segmental results for 2015

The presentation of the unaudited segmental results for the six months to 30 June 2015 have been reclassified to be consistent with the current year presentation and that presented in audited financial statements of the year to 31 December 2015. The overall reported loss for the period has not changed.

3. Segmental Reporting

The following table presents revenue and profit information for each business segment.

 
                                  TPG            TPG       TPG       TPG        Central     Group 
                             Maritime    Engineering       D&T        MS    unallocated 
                                                                                  costs 
                              GBP'000        GBP'000   GBP'000   GBP'000        GBP'000   GBP'000 
=========================  ==========  =============  ========  ========  =============  ======== 
 
 Six months ended 
  30 June 2016 
 Revenue                        5,155          2,749       279     1,180              -     9,363 
 Operating profit/(loss)        1,300          (641)     (752)       139          (823)     (777) 
 Depreciation, 
  amortisation 
  and impairment                  421             90         8         -             21       540 
 Exceptional items                  -              -         -         -            231       231 
 Share based payments               -              -         -         -             18        18 
=========================  ==========  =============  ========  ========  =============  ======== 
 Adjusted EBITDA(2)             1,721          (551)     (744)       139          (553)        12 
=========================  ==========  =============  ========  ========  =============  ======== 
 
   Six months ended 
   30 June 2015(2) 
 Revenue                        3,696          3,708       435       501              -     8,340 
 Operating profit/(loss)          236          (199)   (2,113)        19          (559)   (2,616) 
 Depreciation, 
  amortisation 
  and impairment                  406             76       203         -              1       686 
 Exceptional items                  -              -       943         -              -       943 
 Share based payments               -              -         -         -             22        22 
=========================  ==========  =============  ========  ========  =============  ======== 
 Adjusted EBITDA(1)               642          (123)     (967)        19          (536)     (965) 
=========================  ==========  =============  ========  ========  =============  ======== 
 
   Year ended 
   31 December 
   2015 
 Revenue                       10,948          7,067       901     1,530              -    20,446 
 Operating profit/(loss)        1,933          (471)   (2,843)       247        (1,161)   (2,295) 
 Depreciation, 
  amortisation 
  and impairment                  844            229       254         -              1     1,328 
 Exceptional items                  -              -       976         -              -       976 
 Share based payments               -              -         -         -             36        36 
=========================  ==========  =============  ========  ========  =============  ======== 
 Adjusted EBITDA(1)             2,777          (242)   (1,613)       247        (1,124)        45 
=========================  ==========  =============  ========  ========  =============  ======== 
 

(2) Adjusted EBITDA is defined as operating profit adjusted to add back depreciation of property, plant and equipment, amortisation and impairment of acquired intangible assets and any other acquisition-related charges, share based payment charges and exceptional items. Exceptional items are those items believed to be exceptional in nature by virtue of their size and or incidence. Exceptional items in the period to 30 June 2016 comprise termination costs of GBP231k (2015: Exceptional items in 2015 comprised restructuring costs of GBP976k, including impairment of fixed assets GBP493k and termination costs of GBP146k).

(3) The presentation of the unaudited segmental results for the six months to 30 June 2015 have been reclassified to be consistent with the current year presentation and that presented in audited financial statements of the year to 31 December 2015. The overall reported loss for the period has not changed.

4. Loss per share

The calculation of the basic loss per share is based on the loss after tax for the period divided by the weighted average number of shares in issue during the period as follows:

 
                              Unaudited     Unaudited       Audited 
                             Six months    Six months 
                                  ended         ended    Year ended 
                                30 June       30 June   31 December 
                                   2016          2015          2015 
                                 number        number        number 
=========================  ============  ============  ============ 
 Weighted average shares 
  in issue                  420,857,956   420,857,956   420,857,956 
=========================  ============  ============  ============ 
 

The weighted average number of shares in issue has been reduced by deducting the weighted average number of shares held by the Employee Benefit Trust of 1,606,770 shares (six months ended 30 June 2015 and year ended 31 December 2015: 1,606,770 shares).

The issue of additional shares on exercise of employee share options would decrease the basic loss per share and there is therefore no dilutive effect of employee share options.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR LTMRTMBABBLF

(END) Dow Jones Newswires

September 13, 2016 02:00 ET (06:00 GMT)

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