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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Apc Technology Group Plc | LSE:APC | London | Ordinary Share | GB0000373984 | ORD 2P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 9.875 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMAPC
RNS Number : 4323O
APC Technology Group PLC
28 May 2015
28 May 2015
APC Technology Group PLC
("APC", "Group" or the "Company")
Unaudited Interim Results for the six months ended 28 February 2015
APC Technology Group PLC (AIM: APC), the provider of technologies and services intended to help improve organisational sustainability and specialist distributor of electronic components, is pleased to announce its unaudited interim results for the six months ended 28 February 2015.
Financial Highlights
-- Group revenues up 19% to GBP14.5m (H1 2014: GBP12.1m)
-- Revenues in Minimise Group, the Group's sustainability-related business, up 41% to GBP8.3m (H1 2014: GBP5.9m)
-- Revenues in Advanced Power Components, the Group's electronic component distribution business, flat at GBP6.2m (H1 2014: GBP6.2m)
-- Group gross profit up 16% to GBP5.2m (H1 2014: GBP4.5m)
-- GBP3.5m raised during the period to fund expansion
Operational Highlights
-- Strengthening of management team: Appointment of Richard Hodgson as Group CFO and Andrew Shortis as MD of Minimise Group
-- Expansion of end-to-end sustainability offering through the creation of Minimise Water and Minimise Generation
-- Deepening and diversification of customer base
-- Delivery of cross-selling momentum and operational efficiencies following the acquisition of Green Compliance plc
Commenting on the results, Mark Robinson, Chief Executive, said:
"The first half has been a period of further progress and expansion for the Group. There has been a great deal of investment to support the Board's longer-term growth strategy and we're already starting to see strong sales to support this approach, which should provide investors with reassurance that the Group is moving in the right direction.
With the acquisition of Green Compliance, the establishment of Minimise Generation, the deepening and diversification of our customer base and the impressive sales we're already starting to achieve, the future of our end-to-end sustainability-related offering looks bright. I'm confident that the foundations are now being laid in the right way to support dramatically improved profitability in the near future.
APC is on the cusp of an exciting phase of growth worthy of continued investment and I would like to take this opportunity to thank our shareholders for their funding and support. Without them, the Group would not be in the favourable position it is today. I look forward to the future with confidence and to reporting further progress in the coming months."
Enquiries:
APC Technology Group PLC 01634 290 588 Mark Robinson, Chief Executive http://www.apc-plc.co.uk Officer Richard Hodgson, Chief Financial Officer Strand Hanson Limited (Nominated Adviser) James Harris / Angela Hallett 020 7409 3494 / Ritchie Balmer Cantor Fitzgerald Europe (Broker) 020 7894 7000 Rick Thompson / Andrew Craig / Will Goode Redleaf Communications (Financial PR) 020 7382 4730 Rebecca Sanders-Hewett / David Ison / Susie Hudson
Notes to Editors:
A video with Mark Robinson discussing APC's interim results is available here:
http://brrmedia.co.uk/event/138776?popup=true
Since 2009 APC has been in a process of diversification. The distribution of specialist electronic components, which has represented the majority of revenues since incorporation in 1982, remains a key part of the business but the rapid growth of Minimise Energy, coupled with the creation of Minimise Finance and Minimise Solutions, the recent acquisition of Green Compliance plc and the even more recent incorporation of Minimise Generation has created a sustainability focussed business that is set to grow rapidly in the UK, North and Latin America with the potential to generate significant, profitable growth for the foreseeable future.
APC's sustainability related activities are designed to offer its clients a simple, 'one stop shop' approach to meeting their sustainability obligations. With sustainability related consulting, energy management, water management and project financing under one roof the relationships required to overcome the obstacles which have historically held up sustainability enhancing projects are being created.
APC's electronic component distribution business, trading as Advanced Power Components, sells specialist components into defence, aerospace, space, transportation medical and industrial sectors. The Company's value-add business model, centred upon the technical experience and capabilities of the Company's sales engineers, are of value to both clients and suppliers, for whom APC typically acts on an exclusive basis.
Chairman's Statement
Since 2009, APC has been in a process of diversification. While it maintains a key and stable division involved in the distribution of specialist electronic components, which has represented the majority of revenues since incorporation in 1982, the rapid growth of Minimise Group ("Minimise"), the holding company for APC's sustainability operations, has led to a shift in commercial emphasis. Through its Minimise brand of integrated business units, each of which offers a different sustainability-related product or service, the Group's objective is to become a "one stop shop" for corporates and SMEs looking to address all of their sustainability needs and requirements.
Achieving this objective is an ongoing process, and to that end the six-month period ending 28 February 2015 has been one of further progress and expansion for the Group defined by on-going investment, early success in the deepening and diversification of its customer base and the continued development of its end-to-end sustainability offering.
Summary of financial performance
Revenues for the period were GBP14.5m (2014 H1: GBP12.1m) representing growth of 19% over the corresponding period in the preceding year.
In the Group's sustainability business, Minimise Group, the underlying revenue performance in the period under review reflects a more significant growth rate of close to 41% taking into account the significant reduction in revenues from WM Morrisons, which encouragingly has now recommenced ordering, and the incremental revenues achieved through the acquisition of Green Compliance plc in September 2014. As mentioned in the March 2015 trading statement, significant progress has been made in reducing over-reliance on any one customer in the period, with sales to customers other than WM Morrisons by Minimise Energy increasing 300% from GBP0.9m to GBP3.6m.
The Board is pleased to confirm that this level of growth for Minimise has continued into the second half of the year to date with new customers being added and more services and products being sold to existing clients.
During the period, the Group achieved an operating profit before interest, tax, amortisation, share based payments and exceptional costs of GBP249,000 (2014 H1: GBP815,000). Exceptional costs incurred in the period include acquisition costs in respect of Green Compliance plc of GBP650,000, restructuring costs of GBP150,000 and discontinued costs relating to the acquisition of Green Compliance plc totalling GBP345,000. Taking into account interest, tax, amortisation, share based payments and exceptional costs, the retained loss for the period was GBP1,077,000.
Minimise Group
Minimise is at the crux of APC's growth strategy. It creates and implements sustainability strategies that help organisations improve financial and commercial performance and help meet corporate, environmental and legislative targets. Made up of several business units, it provides a complete range of integrated and complementary sustainability technologies, products and services which dedicated client managers are trained to cross-sell; including energy efficiency, energy generation, water management, sustainability consulting and project financing.
This integrated approach results in customers benefitting from greater efficiencies across their business or an individual site and therefore offers them a dramatically improved return on their investment.
Business units
-- Minimise Energyoffers innovative energy efficiency technologies to help organisations achieve on-going energy reduction goals. These include LED lighting (design, supply and installation), energy monitoring and reporting, contactless power systems and optimisation for electric motors, gas and electric boilers and air-conditioning systems. This business is capitalising on the increasing demand for energy efficiency technologies and the growth in revenues from new customers experienced in the first half year is continuing into the second half.
-- Minimise Generation, which optimises businesses' energy generation using renewables to help customers drive operational savings, increase energy self-sufficiency while simultaneously reducing carbon emissions and helping to meet carbon reduction targets, is now building its own revenue stream. Although limited initially, this is backed up by a strong project pipeline which is currently being helped by UK Government initiatives intended to stimulate renewable generation at point of consumption.
-- Minimise Solutions, a strategic consultancy and advisory service helping organisations to develop sustainability models, meet reduction targets and comply with legislation, is gaining traction having acquired a number of new customers in addition to Royal Mail Group. The recent introduction of the Energy Savings Opportunity Scheme ("ESOS") is presenting an opportunity to engage with a wider customer base which is potentially interested in both sustainability related consulting services plus products and technologies with the potential to drive down consumption and cost.
-- Minimise Finance, which delivers tailor-made financing options to fund energy efficiency and renewable energy schemes from identified savings, secured its initial energy efficiency projects during the period and has significant proposals moving forward with a number of potential customers.
-- Minimise Water(Green Compliance), offers a complete range of water management and air hygiene technologies and services to help reduce the cost of compliance and save money on operating costs. Since the integration of Green Compliance, this business unit has maintained its core water hygiene and treatment contract base and has begun to develop new revenue streams through an extension of its products and services related to the management of water consumption.
-- Investment in Minimise Energy Americas, the Group's sustainability offering in the Americas, was expanded during the latter months of 2014. It is clear that Minimise's approach of combining LEDs alongside a number of other products and services designed to target specific applications is proving successful in certain significant market areas. The Board remains excited about the opportunity, in what is clearly a significant potential market, and intends to further develop its presence in the Americas in a carefully controlled manner.
Following the acquisition of Green Compliance plc and the creation of Minimise Generation Limited in January 2015, Minimise now delivers an expanded range of innovative technologies, products and services through its brands.
As the breadth and depth of the Minimise offering is now better understood by the market and existing customers, the scale of sales opportunities being developed across the Group is escalating and the Board is confident that its strategy of developing an end-to-end sustainability offering will prove increasingly successful in what is a rapidly expanding market. Early evidence of the commercial viability of this model can be seen in its relationship with the Royal Mail Group where revenues have grown strongly from an increasing number of projects related to sustainability consulting services, energy efficiency and water management technologies in the initial phase at the largest 70 of the Royal Mail Group's 1,200 sites.
Revenues in Minimise (excluding Water) were approximately GBP4.0m during the period (2014 H1: GBP5.9m), the vast majority of which came from sales made by Minimise Energy. Importantly, as a result of investments being made in the other parts of the Minimise Group, additional revenues streams are now beginning to gather momentum.
Half year revenues in Green Compliance, which now trades as a part of Minimise Water, were in line with expectations at GBP4.1m.
Investment
Investment in Minimise was significant in the period under review and has continued into the second half of the year. Whilst the level of on-going investment in the various business units and Minimise Energy Americas is reducing short term profitability, the Board is satisfied that the Group's available funding and strategy of investing in technologies, products, services, and the teams required to deliver them for significant long term growth puts it in a strong position. It expects that each of these business units will become profitable in their own right in the coming months, thus improving future Group profitability significantly. The Board will continue to consider acquisition and investment opportunities to expand existing operations or to add a new technologies, solutions or product sets for which demand from its customers is evident.
Advanced Power Components
Revenues in APC's electronic component distribution business, which trades as Advanced Power Components, were GBP6.2m (2014 H1: GBP6.2) which was in line with expectations. The order book for the second half of the current financial year is strong, which is consistent with historic trading patterns in which trading in the second half of the year is typically slightly stronger than the first half. The distribution business continues to be profitable and provide cash flow stability to the Group.
Group
Working Capital and Funding for Growth
Between December 2014 and February 2015, GBP3.4m of cash was raised to fund expansion via the placing of, in aggregate, 17,193,182 new ordinary shares in the Company. These funds were raised to support the investment required to take advantage of the growth opportunities that have been identified. In the current financial year the Group has invested approximately GBP1m to develop Minimise Energy, Minimise Solutions, Minimise Generation and in its American operations to address what is clearly a growing opportunity. The Group has also invested approximately GBP1.5m in working capital to support the recent expansion in revenues, and will continue to make strategic, but controlled, investments to maintain the current rate of growth.
Net debt at the end of the period was GBP1.25m including cash on hand of GBP2.4m, GBP2.9m drawn on the invoice finance facility (against a gross debtor book of GBP4.5m) and GBP750,000 of unsecured loan notes from shareholders, which are due to be redeemed in July 2015.
Outlook
In advance of the United Nations Climate Change Conference in Paris in December 2015, UK government legislation, including the ESOS and changes to the UK's Photovoltaic feed-in tariff, are being used to encourage the UK corporates and SME's to take action to reduce energy consumption and, where possible, to generate energy renewably on-site. The Board considers that this legislation further enhances what is already a significant domestic opportunity for future growth.
APC has evolved dramatically in recent months and now has a number of opportunities available to it with the resources and infrastructure that are in place. However, considering the proven effectiveness of the "one stop shop" business model and the increasing demand for technologies, products and services designed to help organisations manage the sustainability of their estate, the Board firmly believes there is a far more significant growth story worthy of continued investment in the second half and beyond. The Board is very appreciative of the Group's shareholders, whose continued support has enabled the Group to fund this exciting phase in its development, and looks forward to the future with confidence.
Leonard Seelig
Chairman
28 May 2015
CONDENSED CONSOLIDATED STATEMENT OF INCOME
for the 6 months ended 28 February 2015
6 months 6 months Year ended ended ended 28 February 28 February 31 August 2015 2014 2014 (unaudited) (unaudited) (audited) Note GBP000 GBP000 GBP000 Revenue 4 14,498 12,098 20,634 Cost of sales (9,302) (7,604) (13,076) ------------ ------------ ---------- Gross profit 5,196 4,494 7,558 Administration expenses (4,964) (3,712) (6,957) Share of results of associates 17 33 (28) Operating profit before exceptional items 249 815 573 Exceptional items (847) - (43) Share based payments (21) (24) (103) Operating profit/(loss) (619) 791 427 Finance costs (net) 4 (113) (30) (45) ------------ ------------ ---------- Profit/(loss) before taxation 4 (732) 761 382 Taxation expense - (206) (80) ------------ ---------- Profit/(loss) for the period from continuing operations 4 (732) 555 302 ============ ============ ========== Loss for the period from discontinued operations (345) - - ------------ ------------ ---------- Profit/(loss) for the period (1,077) 555 302 ============ ============ ========== Attributable to: Equity holders of the parent (1,139) 689 554 Non-controlling interests 62 (134) (252) (1,077) 555 302 ============ ============ ========== Basic earnings per share 5 (1.9p) 1.2p 1.0p Diluted earnings per share 5 (1.9p) 1.2p 0.9p Earnings per share on operating profit before exceptional costs and share based payments 5 0.4p 1.4p 1.0p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the 6 months ended 28 February 2015
6 months 6 months Year ended ended ended 28 February 28 February 31 August 2015 2014 2014 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Profit for the period (1,077) 555 302 ------------ ------------ ---------- Other comprehensive income Items that may be subsequently reclassified to profit or loss - Currency translation movement arising on consolidation 10 (15) - Other comprehensive income net of tax 10 (15) - ------------ ------------ ---------- Total comprehensive income for the period (1,067) 540 302 ============ ============ ========== Attributable to: Equity holders of the parent (1,129) 680 554 Non-controlling interests 62 (140) (252) (1,067) 540 302 ============ ============ ==========
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 28 February 2015
28 February 28 February 31 August 2015 2014 2014 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Non-current assets Intangible assets 15,677 7,173 7,260 Property, plant and equipment 295 298 343 Other investments 1,456 1,275 1,415 Financial asset 156 - 156 Deferred tax asset 33 - 33 17,617 8,746 9,207 Current assets Inventories 2,730 1,474 2,237 Trade and other receivables 5,916 4,431 4,011 Cash and cash equivalents 2,409 1,447 552 11,055 7,352 6,800 Total assets 4 28,672 16,098 16,007 Current liabilities Trade and other payables (6,545) (4,353) (3,651) Borrowings (2,927) - (754) Current tax liability (99) (239) (99) (9,571) (4,592) (4,504) Net current assets 1,484 2,760 2,296 Non-current liabilities Financial liabilities (831) (94) (102) Deferred tax liability (16) (28) (16) Net assets 18,254 11,384 11,385 ============ ============ ========== Equity attributable to equity holders of the company Called up share capital 1,812 1,163 1,199 Share premium account 15,546 8,103 8,244 Share option valuation reserve 419 319 398 Translation reserve - (9) (10) Retained earnings 472 1,746 1,611 Equity attributable to equity holders of the parent 18,249 11,322 11,442 Non-controlling interests 5 62 (57) Total equity 18,254 11,384 11,385 ============ ============ ==========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the 6 months ended 28 February 2015
for the 6 months ended 28 February 2015 Share Share Share premium option Translation Retained Sub Non-controlling capital account reserve reserves earnings total interests Total GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 at 1 September 2014 1,199 8,244 398 (10) 1,611 11,442 (57) 11,385 Profit / (Loss) for the period - - - - (1,139) (1,139) 62 (1,077) Other total comprehensive income for the period - - - 10 - 10 - 10 Total comprehensive income for the period - - - 10 (1,139) (1,129) 62 (1,067) -------- -------- -------- -------------- ----------- ---------- ------------------ ---------- Transactions with owners Issue of new shares 345 3,234 - - - 3,579 - 3,579 Issue of ordinary shares in relations to a business combination 268 4,491 - - - 4,759 - 4,759 Reclassification of non- controlling interest - (340) - - - (340) - (340) Costs associated with share issue - (83) - - - (83) - (83) Share option charge - - 21 - - 21 - 21 613 7,302 21 - - 7,936 - 7,936 -------- -------- -------- -------------- ----------- ---------- ------------------ ---------- at 28 February 2015 (unaudited) 1,812 15,546 419 - 472 18,249 5 18,254 ======== ======== ======== ============== =========== ========== ================== ========== for the 6 months ended 29 February 2014 at 1 September 2013 1,147 8,010 295 - 1,180 10,632 (41) 10,591 Profit / (Loss) for the period - - - - 689 689 (134) 555 Other total comprehensive income for the period - - - (9) - (9) (6) (15) -------- -------- -------- -------------- ----------- ---------- ------------------ ---------- Total comprehensive income for the period - - - (9) 689 680 (140) 540 -------- -------- -------- -------------- ----------- ---------- ------------------ ---------- Transactions with owners Issue of new shares 16 93 - - - 109 - 109 Group's and non-controlling interest in new subsidiary - - - - 304 304 202 506 Share option charge - - 24 - - 24 - 24 Non-controlling interest acquired - - - - (41) (41) 41 - IAS 27 transfer to reserves on business acquisitions - - - - (386) (386) - (386) -------- -------- -------- -------------- ----------- ---------- ------------------ ---------- 16 93 24 - (123) 10 243 253 -------- -------- -------- -------------- ----------- ---------- ------------------ ---------- at 28 February 2014 (unaudited) 1,163 8,103 319 (9) 1,746 11,322 62 11,384 ======== ======== ======== ============== =========== ========== ================== ==========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Continued
for the year ended 31 August 2014 Share Share Share premium option Translation Retained Sub Non-controlling capital account reserve reserves earnings total interests Total GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 at 1 September 2013 1,147 8,010 295 - 1,180 10,632 (41) 10,591 Profit / (Loss) for the period - - - - 554 554 (252) 302 Other comprehensive income - - - (10) - (10) (7) (17) Total comprehensive income for the period - - - (10) 554 544 (259) 285 -------- -------- -------- ------------ --------- ------- ---------------- ------- Transactions with owners Issue of new shares 52 234 - - - 286 - 286 Group and non-controlling interest in new subsidiary - - - - 304 304 202 506 Non-controlling interest acquired - - - - (41) (41) 41 - IAS 27 transfer to reserves on business acquisitions - - - - (386) (386) - (386) Share option charge - - 103 - - 103 - 103 52 234 103 - (123) 266 243 509 -------- -------- -------- ------------ --------- ------- ---------------- ------- at 31 August 2014 (audited) 1,199 8,244 398 (10) 1,611 11,442 (57) 11,385 ======== ======== ======== ============ ========= ======= ================ =======
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
for the 6 months ended 28 February 2015
6 months 6 months Year to 28 to 28 to 31 February February August 2015 2014 2014 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Reconciliation of cash flows from operating activities Profit /(Loss) before taxation for the period (1,077) 761 382 Share of results of associates (17) (33) 28 Loss on disposal of property, plant and equipment 53 - 5 Finance costs (net) 113 30 45 Increase/ (Decrease) in Financial Assets - - (156) Taxation payments - - (52) Depreciation of property, plant & equipment 59 42 99 Decrease / (increase) in inventories (493) 118 (645) Decrease / (increase) in trade and other receivables (376) 68 (24) Decrease in trade and other payables (608) (90) (813) Acquisition of non-controlling interest - - 371 Share-based payments 21 24 103 Net cash from operating activities (2,325) 920 (657) ------------ ------------ ---------- Cash flows from investing activities Acquisition of property, plant and equipment (64) (148) (202) Acquisition of subsidiary undertakings, net of cash acquired - (486) (385) Other Investment (24) - (200) Eligible development costs capitalised (155) - (87) Net cash used in investing activities (243) (634) (874) ------------ ------------ ---------- Cash flows used in financing activities Finance costs (net) (113) (30) (45) Finance leases (16) 34 42 Proceeds of Share Issue (net) 3,379 109 286 Bank short-term invoice discounting facility 1,256 (113) 639 Repayment of bank loan facility (90) (21) (21) Net cash used in financing activities 4,416 (21) 901 ------------ ------------ ---------- Increase in net cash 1,848 265 (630) ------------ ------------ ---------- Cash and cash equivalents as at 1 September 552 1,182 1,182 Increase in net cash 1,848 265 (630) Exchange gains on cash and cash equivalents 9 - - Cash and cash equivalents as at period end 2,409 1,447 552 ============ ============ ==========
NOTES TO THE INTERIM REPORT
1. General information
APC Technology Group PLC is a public limited Company ("the Company / the Group") incorporated in the United Kingdom under the Companies Act 2006 (registration number 01635609). The Company is domiciled in the United Kingdom and its registered address is 47 Riverside, Medway City Estate, Rochester, Kent, ME2 4DP. The Company's Ordinary Shares are traded on The AIM Market of the London Stock Exchange ("AIM"). The Group's principal activities are the distribution of specialist electronic components and the sale of smart energy & water saving products and services.
2. Basis of preparation
This unaudited consolidated interim financial information has been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively EU IFRSs). The principal accounting policies used in preparing the interim results are those it expects to apply in its financial statements for the year ended 31 August 2015 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 August 2014.
The financial information does not contain all of the information that is required to be disclosed in a full set of IFRS financial statements. The financial information for the six months ended 28 February 2015 and 28 February 2014 is unreviewed and unaudited and does not constitute the Group's statutory financial statements for those periods. The comparative financial information for the full year ended 31 August 2014 has, however, been derived from the audited statutory financial statements for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified, did not include references to any matters to which the auditor drew attention by way of emphasis without qualifying its report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.
The financial information in the Interim Report is presented in Sterling and all values are rounded to the nearest thousand pounds (GBP000) except where otherwise indicated.
3. Acquisitions
On 12 September 2014 the Group acquired through an all-share offer 100% of the share capital of Green Compliance plc ("Green Compliance"), a company incorporated in England and listed on AIM, whose principal activity comprises the provision of water quality monitoring services, in order to broaden its Cleantech activities into the market for water management. The purchase consideration consisted of the issue of 2 new ordinary shares in APC Technology Group PLC for every 71 shares in Green Compliance.
Provisional details of net assets acquired and goodwill are set out below:
GBP000 Total purchase consideration: share offer as set out above 4,759 Fair value of net liabilities acquired (see below) 4,051 ------ Goodwill 8,810
The above goodwill is attributable to Green Compliance's strong position in the niche market for water quality monitoring. The Board is currently considering whether there are separately identifiable intangible assets.
The Group is still in the process of finalising the list of identifiable assets and liabilities and establishing the fair values of those assets and liabilities acquired but it is anticipated that the fair value of the consideration paid over the book value of the net liabilities acquired will include customer relationships and goodwill representing the value attributable to new business and the assembled and trained workforce.
As at the date of acquisition, 12 September 2014, the net liabilities of Green Compliance, based on unaudited management accounts and reported under IFRS, were as follows:
Fair value GBP000 Cash and cash equivalents 213 Trade and other receivables 1,529 Trade and other payables (4,041) Borrowings (1,752) Net liabilities acquired (4,051) -------------------------
Included in the balance sheet of Green Compliance plc was acquired goodwill of GBP6,182,000, making net acquired assets, including goodwill, of GBP2,131,000.
4. Segmental information
IFRS 8 "operating segments", requires consideration of the chief operating decision maker ('CODM') within the Group. In line with the Group's internal reporting framework and management structure, the key strategic and operating decisions are made by the CEO, who reviews internal monthly management reports, budget and forecast information as part of this. Accordingly the CEO is deemed to be the CODM.
Operating segments have then been identified based on the reporting information and management structures within the Group.
The Group operates in two trading business segments.
-- The distribution of specialist electronic components (Distribution).
-- The sale of smart energy & water saving products and services (Minimise).
The Group also contains a central services segment that provides support to the trading businesses.
In the table below reportable segment assets and liabilities include inter segment balances. These have been included to reflect the assets and liabilities of the segment as monies are freely moved around the group to provide funding for working capital where required.
6 months 6 months to 28 to 28 Year to February February 31 August Segmental information 2015 2014 2014 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Revenue Distribution 6,199 6,220 12,456 Minimise 8,299 5,878 8,178 Total revenue 14,498 12,098 20,634 ------------ ------------ ----------- Profit / (loss) before tax Distribution 265 86 508 Minimise 289 675 (83) Head office (439) - - ------------ ------------ ----------- Profit before tax for reported segments 115 761 425 ------------ ------------ ----------- Non-segmental cost / income Exceptional items (847) - (43) Total profit before tax from continuing operations (732) 761 382 ------------ ------------ ----------- Taxation expense - (206) (80) Profit for the period from continuing operations (732) 555 302 ------------ ------------ ----------- Assets Distribution 19,712 5,910 7,172 Minimise 6,306 4,770 4,445 Assets not attributable to segments 2,654 5,418 4,390 Total Assets 28,672 16,098 16,007 ------------ ------------ ----------- Liabilities Distribution (4,091) (1,764) (2,450) Minimise (6,327) (2,950) (2,108) Liabilities not attributable to segments - - (64) Total Liabilities (10,418) (4,714) (4,622) ------------ ------------ ----------- Other Net finance expense Distribution 59 19 25 Minimise 54 11 20 113 30 45 ------------ ------------ ----------- Capital expenditure Distribution 22 13 51 Minimise 42 135 201 64 148 252 ------------ ------------ ----------- Depreciation Distribution 23 15 33 Minimise 36 27 66 59 42 99 ------------ ------------ ----------- 6 months 6 months to 28 to 28 Year to Revenue by geographic February February 31 August location 2015 2014 2014 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 UK 13,698 11,302 18,856 North America 174 76 491 Far East, Europe and other 626 720 1,287 Total revenue 14,498 12,098 20,634 ------------ ------------ ----------- 5. Earnings per share
The calculation of basic earnings per share is based on the profit after taxation for the period and the weighted average number of shares in issue during the period.
Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding by the dilutive effect of ordinary shares that the Company may potentially issue relating to its share option scheme and warrants outstanding. Where the effect of the above adjustments is anti-dilutive they are excluded from the calculation of diluted earnings per share.
The profit for the period and the weighted average number of shares used in the calculations are set out in the following table: -
6 months 6 months to 28 to 28 Year to February February 31 August 2015 2014 2014 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Earnings- profit attributable to equity share holders (1,139) 689 554 Earnings- operating profit before exceptional costs and share based payments 249 815 573 Number Number Number of shares of shares of shares thousands thousands thousands Basic average number of shares in issue 59,945 57,883 58,087 Effect of dilutive potential shares 336 1,819 1,084 60,281 59,702 59,171 ============ ============ =========== Earnings per share Basic earnings per share (1.9p) 1.2p 1.0p Diluted earnings per share (1.9p) 1.2p 0.9p Earnings per share based on operating profit before exceptional costs and share based payments 0.4p 1.4p 1.0p
There were 90,587,675 shares in issue at 28 February 2015.
6. Discontinued operations
The amounts presented in the statement of loss under discontinued operations relate to the run-off costs of Green Compliance plc during the integration of the Company into the Group.
7. Copies of Interim report
The interim report is available to view and download from the Company's website at www.apc-plc.co.uk. If shareholders would like a hardcopy of the interim report, they should contact the Company Secretary.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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