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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Character Group Plc | LSE:CCT | London | Ordinary Share | GB0008976119 | ORD 5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
1.00 | 0.38% | 262.00 | 260.00 | 264.00 | 262.00 | 261.00 | 261.00 | 15,951 | 10:16:54 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Toys,hobby Gds & Supply-whsl | 122.59M | 3.5M | 0.1807 | 14.50 | 50.74M |
TIDMCCT
RNS Number : 4810D
Character Group PLC
27 April 2017
THURSDAY 27 APRIL 2017
The Character Group plc
Designers, developers and international distributor of toys, games and giftware
HALF YEARLY FINANCIAL REPORT
for the six months ended 28 February 2017
"Profitable, cash generative with a strong balance sheet; a set of solid results in challenging market conditions and against the backdrop of significant growth in the comparative period. Character remains the UK's leading independent toy company."
KEY PERFORMANCE INDICATORS
CONTINUING OPERATIONS Half-year Half-year Full-year ended ended ended February February August 2017 2016 Change 2016 ----------------------------- ---------- ---------- ------- ---------- Revenue GBP61.5m GBP65.2m -5.7% GBP121.0m Underlying operating -17.2% GBP12.7m profit* GBP7.2m GBP8.7m Operating profit GBP6.6m GBP8.8m -25.0% GBP13.3m Underlying pre-tax profit* GBP7.1m GBP8.6m -17.4% GBP12.5m Pre-tax profit GBP6.5m GBP8.7m -25.3% GBP13.1m Underlying basic earnings per share* 27.86p 32.43p -14.1% 47.63p Underlying diluted earnings per share* 27.07p 30.69p -11.8% 45.16p Basic earnings per share 25.18p 32.85p -23.3% 50.30p Diluted earnings per share 24.47p 31.09p -21.3% 48.54p Proposed dividend per share 9.0p 7.0p +28.6% 8.0p Underlying EBITDA* GBP8.5m GBP10.4m -18.3% GBP15.1m EBITDA GBP7.9m GBP10.5m -24.8% GBP15.7m Net cash GBP18.6m GBP14.5m +27.9% GBP6.9m Net assets GBP25.2m GBP21.4m +17.8% GBP22.9m ----------------------------- ---------- ---------- ------- ---------- * Excludes mark to market (loss)/profit adjustments on FX derivative positions GBP(0.6)m GBP0.1m GBP0.6m ------------------------------ ---------- -------- -------- Ø Core group of products continues to have brand strength in depth - Top 3 brands are Peppa Pig, Little Live Pets and Teletubbies Ø Recently launched Stretch range becomes one of our top brands Ø Gross profit level holding well despite increased purchasing costs due to weakness of sterling Ø Strong balance sheet and highly cash generative model with net cash at bank of GBP18.6m at HY 17 Ø Proposed dividend of 9.0p up 28.6% on comparative period Ø Major range extensions currently in development for Peppa, Little Live Pets, Teletubbies, Stretch, Mashems and Minecraft Ø We remain on target to achieve current market expectations for the full financial year to 31 August 2017 FTSE sector: leisure: FTSE AIM All-share: symbol: CCT.L: Market cap: GBP101m Copies of this statement can be viewed at www.thecharacter.com. Product ranges can be viewed at www.character-online.co.uk. ENQUIRIES The Character Group plc Jon Diver, Joint Managing Director Kiran Shah, Joint Managing Director Mark Dowding, Group Finance Director Office: +44 (0) 208 329 3377 Mobile: +44 (0) 7831 802219 (JD) Mobile: +44 (0) 7956 278522 (KS) Mobile: +44(0)7967185269 (MD) Email: info@charactergroup.plc.uk Panmure Gordon (Nominated Adviser and Joint Broker) Andrew Godber, Investment Banking Tom Salvesen, Corporate Broking Tel: +44 (0) 20 7886 2500 Allenby Capital Limited (Joint Broker) Nick Athanas Katrina Perez Tel: +44 (0) 20 3328 5656 TooleyStreet Communications Limited (Investor and media relations) Fiona Tooley Tel: +44 (0) 7785 703523 Email: fiona@tooleystreet.com
The Character Group plc
(the "Company" or "Group" or "Character")
Designers, developers and international distributor of toys, games and giftware
HALF YEARLY FINANCIAL REPORT
for the six months ended 28 February 2017
INTRODUCTION
The Board is pleased to report that the Group continues to deliver consistently solid financial results. In a period where a number of macro-economic factors, particularly the weakness of sterling have worked against us and considering the backdrop of an exceptional period of growth experienced in the comparative period last year, our core brands have continued to perform well.
The balance sheet continues to strengthen and the repeating success of our cash generation model leads us to report a net cash balance of GBP18.6m at the 2017 HY balance sheet date. The Board's continued confidence gained from these results and the current outlook for the business enable it to declare an increased interim dividend of 9.0 pence per share, up 28.6% on last year.
As previously communicated we have instigated several specific measures to improve operational efficiency to mitigate the adverse effect of increased stock purchase costs arising as a result of the weakness of sterling. We are pleased to say that good progress has been made on these initiatives and material cost savings are now coming through, this gives us confidence on our ability to meet current market forecasts.
OUR BRANDS
Our Top performing brands in the period were Peppa Pig, Little Live Pets, Teletubbies, Mashems, Minecraft, Scooby Doo, Stretch and Fireman Sam. This core group of products continues to have brand strength and depth. Peppa is consistently our top performing brand; Little Live Pets and Teletubbies complete our Top 3. The recently launched Stretch range has importantly already established itself as one of our top brands in the UK and internationally.
Our continued market leading position in the UK ensures that we remain the partner of choice for many of the leading brand owners and we remain confident in our ability to further expand our presence both domestically and internationally in the years to come.
PERFORMANCE ON CONTINUING OPERATIONS
Revenue in the period was GBP61.5m, against GBP65.2m in the comparable 2016 period (year ended 31 August 2016 GBP121m). Geographically our revenue split in the period remained consistent with the comparable 2016 period and was United Kingdom 76% (2016: 76%), Rest of the World (including USA) 24% (2016: 24%). As we highlighted at the time of our Annual General Meeting in January 2017 our sales levels leading up to the 2016 Christmas period were marginally down compared to what was an exceptional comparative period in 2016. The Group adopted a cautious approach to purchasing stocks in the lead up to the Christmas 2016 period and, although the Group's sales in the period could have been marginally higher were it not for this caution, we believe that this was a prudent approach in the circumstances. Sales in the United States were down compared to HY 2016, which was a contributing factor to the reduction in revenue overall for the period, but the effect on gross profit was minimal, given that the margin on US sales is generally lower than on sales to other territories.
A significant proportion of the Group's purchases are made in US dollars. The business is therefore exposed to foreign currency fluctuations and manages the associated risk through the purchase of forward exchange contracts and derivative financial instruments. Under International Financial Reporting Standards (IFRS), at the end of each reporting period the Group is required to make an adjustment in its financial statements to incorporate a 'mark to market' valuation of such financial instruments. The 'mark to market' adjustment for this financial period results in a charge against profit of GBP0.6m being reported. This compares to an additional profit of GBP0.1m shown in the corresponding period in 2016 and an additional profit of GBP0.6m reported in the year to 31 August 2016. These mark to market adjustments are non-cash items calculated by reference to unpredictable and sometimes volatile currency spot rates at the various balance sheet dates. To highlight profitability on a normal basis these adjustments have been added back to arrive at the "underlying" profit measures presented in this report.
Underlying gross profit margin in the period being reported amounted to 32.2%, compared to 33.9% in the same 2016 period, (a reduction of 1.7%) and 31.1% for the August 2016 financial year. Underlying margins have been impacted by the weakness of sterling; in the case of UK domestic sales (which currently make up the majority of our business) purchase costs have increased whilst the profits from our US dollar based business make a positive impact when translated into our reporting currency sterling.
The Group is reporting an underlying profit before tax in the period under review of GBP7.1m, down 17.4% on the comparative period (HY2016: GBP8.6m), whilst the full year ended 31 August 2016 was GBP12.5m. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were GBP8.5m, down 18.3% on the comparative period (2016: GBP10.4m) and GBP15.1m for the full year to August 2016.
Underlying basic earnings per share amounted to 27.86 pence, a decrease of 14.19% (HY2016: 32.43p; FY2016: 47.63p. Underlying diluted earnings per share, on the same basis, were 27.07 pence (HY2016: 30.69p: FY2016: 45.16p).
The Key Performance Indicators table shown at the front of this report provides the foregoing data on an underlying basis and by reference to Generally Accepted Accounting Practice, as adopted consistently by the Group.
FINANCIAL POSITION, WORKING CAPITAL & CASH FLOW
The Group's capital base strengthened considerably in the period with net assets at 28 February 2017 of GBP25.2m an increase of 10% on the position shown at the end of the 2016 financial year of GBP22.9m.
Inventories at 28 February 2017 were GBP6.2m (HY2016: GBP5.2m: FY2016 GBP10.3m); the increased book value of stock is in large part due to the increased US dollar cost of purchase. Our stock position is lean and made up predominantly of recent purchases; slow moving inventory is minimal.
During the period the Group generated cash from operations of GBP16.4m (HY2016 GBP14.8m: FY 2016 GBP10.8m).
The Group has no long-term debt. Interest charges on the use of working capital facilities during the period were GBP0.1m (HY2016: GBP0.1m: FY 2016 GBP0.2m).
After making dividend payments and share buy-backs (see below), at the end of the first-half period, the Group had net cash on the balance sheet of GBP18.6m (2016: GBP14.5m) an increase of 27.8% on the position at the end of the comparative period.
SHARE BUY-BACK PROGRAMME
In the period under review, the Company acquired a total of 292,402 ordinary shares in the Company at an aggregate cost of GBP1.3m (excluding dealing costs), with the average cost being GBP4.475 per ordinary share (HY2016: 213,936 ordinary shares at an aggregate cost of GBP1m and an average cost of GBP4.70 per ordinary share). There have been no further buy-backs since 28 February 2017. The Company has an unutilised authority to buy-back up to a further 3,214,700 ordinary shares. It remains part of the Group's overall strategy to continue to repurchase the Company's own shares when appropriate under its current share buy-back programme and, as previously indicated, the Directors could also be prepared to participate in any future share buy-back programme the Company proposes.
Total Voting Rights (TVR)
As at today's date, the Company has 21,218,352 ordinary shares in issue. The Company holds 3,269,456 ordinary shares in treasury, representing approximately 15.41 per cent of the share capital excluding these treasury shares, which do not carry voting or dividend rights. The figure of 21,218,352 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or change to their interest, in the Company under the Disclosure and Transparency Rules.
DIVID
We remain focused on delivering a progressive dividend policy. Given our ongoing progress, the Board is declaring an interim dividend of 9.0 pence per share, an increase of 28.6% (2016: 7.0p). This interim dividend, which is covered 2.8 times by earnings, will be paid on 28 July 2017 to shareholders on the Register as at the close of business on 7 July 2017. The shares will be marked ex-dividend on 6 July 2017.
OUR PEOPLE
The business employs 194 people across its locations in the UK and Asia. The Board once again takes this opportunity to thank every one of its colleagues around the business for their continuous hard work, dedication and loyalty, which underpins both the high-level customer relationships and the Group's overall performance
OUTLOOK
Our strategic focus remains: "to seek out and develop exciting products which meet domestic and international market demand". Our portfolio continues to be derived from, both our own-developed in-house ranges, including those produced 'under licence', and others sourced through exclusive distribution agreements. We continue to have great strength and depth across our brands and a wide range of long term customers and suppliers; potential concentration risk is well diversified.
A number of new products are currently in development for launch this calendar year across our core ranges - Peppa, Little Live Pets, Teletubbies, Stretch, Mashems and Minecraft. In particular, there are a number of exciting developments on the "Stretch" range, which we believe will create a strong level of sales later this calendar year and beyond. Once again, the positive customer feedback we have received in relation to these iterations within existing brands and on other new products to be distributed in the near future provide the Board with great confidence in its view that the Group will continue to achieve consistently good results for the remainder of this financial year and beyond.
The second half has started in line with budget and the Board remains of the view that the Group is on target to achieve current market expectations for the full financial year to 31 August 2017.
27 April 2017
The Character Group plc Consolidated Income Statement six months ended 28 February 2017 Notes six months six months 12 months ended ended ended 28 February 29 February 31 August 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 -------------------------------------- ------ -------------- -------------- ----------- Revenue 61,542 65,245 120,967 Cost of sales (42,298) (43,035) (82,694) -------------------------------------- ------ -------------- -------------- ----------- Gross profit 19,244 22,210 38,273 Net operating expenses Selling and distribution costs (4,535) (4,440) (7,128) Administration expenses (8,280) (9,178) (18,447) Other operating income 206 250 602 -------------------------------------- ------ -------------- -------------- ----------- Operating profit 6,635 8,842 13,300 Finance income 14 14 47 Finance costs (139) (121) (215) -------------------------------------- ------ -------------- -------------- ----------- Profit before income taxation 6,510 8,735 13,132 Taxation (1,170) (1,683) (2,345) -------------------------------------- ------ -------------- -------------- ----------- Profit for the period attributable to equity holders of the parent 5,340 7,052 10,787 -------------------------------------- ------ -------------- -------------- ----------- Earnings per share (pence) 4 Basic earnings per share 25.18p 32.85p 50.30p Diluted earnings per share 24.47p 31.09p 48.54p Dividend per share (pence) 3 8.0p 6.0p 13.00p -------------------------------------- ------ -------------- -------------- ----------- EBITDA (earnings before interest, tax, depreciation and amortisation) 7,873 10,471 15,689 -------------------------------------- ------ -------------- -------------- ----------- Consolidated Statement of Comprehensive Income six months six months 12 months ended ended ended 28 February 29 February 31 August 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------------------------------- --- ------------- -------------- ------------ Profit for the period after tax 5,340 7,052 10,787 ------------------------------------------ ------------- -------------- ------------ Items that will not be reclassified subsequently to profit and loss Current tax credit relating to exercised share options - - 421 Deferred tax credit relating to share options 77 30 (414) ------------------------------------------ ------------- -------------- ------------ 77 30 7 ----------------------------------------- ------------- -------------- ------------ Items that may be reclassified subsequently to profit and loss Net exchange differences on translation of foreign operations (224) (129) (676) ------------------------------------------ ------------- -------------- ------------ Total comprehensive income for the period attributable to the equity holders of the parent 5,193 6,953 10,118 ------------------------------------------ ------------- -------------- ------------ The Character Group plc Consolidated Balance Sheet at 28 February 2017 28 February 29 February 31 August 2017 2016 (unaudited) (unaudited) 2016 GBP'000 GBP'000 (audited)
GBP'000 ---------------------------------- --- ------------- ------------- ----------- Non-current assets Intangible assets - product development 729 682 1,117 Investment property 1,813 1,878 1,845 Property, plant and equipment 3,317 3,450 3,357 Deferred tax assets 462 559 474 --------------------------------------- ------------- ------------- ----------- 6,321 6,569 6,793 -------------------------------------- ------------- ------------- ----------- Current assets Inventories 6,205 5,153 10,303 Trade and other receivables 5,754 8,302 25,082 Current income tax receivable - - 7 Derivative financial instruments 104 118 533 Cash and cash equivalents 21,709 16,331 28,560 --------------------------------------- ------------- ------------- ----------- 33,772 29,904 64,485 -------------------------------------- ------------- ------------- ----------- Current liabilities Short term borrowings (3,132) (1,790) (21,647) Trade and other payables (9,921) (12,279) (25,418) Income tax payable (1,577) (723) (1,106) Derivative financial instruments (228) (156) (89) --------------------------------------- ------------- ------------- ----------- (14,858) (14,948) (48,260) -------------------------------------- ------------- ------------- ----------- Net current assets 18,914 14,956 16,225 --------------------------------------- ------------- ------------- ----------- Non - current liabilities Deferred tax (22) (136) (99) --------------------------------------- ------------- ------------- ----------- Net assets 25,213 21,389 22,919 --------------------------------------- ------------- ------------- ----------- Equity Called up share capital 1,224 1,235 1,235 Shares held in treasury (2,743) (2,743) (2,743) Capital redemption reserve 1,732 1,714 1,717 Share based payment reserve 2,854 2,705 2,778 Share premium account 15,483 15,428 15,450 Merger reserve 651 651 651 Translation reserve 1,293 1,578 1,274 Profit and loss account 4,719 821 2,557 --------------------------------------- ------------- ------------- ----------- Total equity 25,213 21,389 22,919 --------------------------------------- ------------- ------------- ----------- The Character Group plc Consolidated Statement of Cash Flows six months ended 28 February 2017 six months six months 12 months ended 28 February ended ended 2017 (unaudited) 29 February 31 August 2016 GBP'000 (unaudited) 2016 GBP'000 (audited) GBP'000 ----------------------------------------- ------------- -------------- ------------- Cash flow from operating activities Profit before taxation for the period 6,510 8,735 13,132 ----------------------------------------- ------------- -------------- ------------- Adjustments for: Depreciation of property, plant and equipment 204 224 441 Depreciation of investment property 33 33 65 Amortisation of intangible assets 1,001 1,372 1,925 (Profit) on disposal of property, plant and equipment - - (1) Interest expense 125 107 168 Financial instruments fair value adjustments 568 (91) (573) Share based payments 76 74 147 Decrease/(increase) in inventories 4,098 3,812 (1,338) Decrease/(increase) in trade and other receivables 19,328 7,233 (9,547) (Decrease)/increase in trade and other creditors (15,497) (6,736) 6,403 ----------------------------------------- ------------- -------------- ------------- Cash generated from operations 16,446 14,763 10,822 ----------------------------------------- ------------- -------------- ------------- Interest paid (125) (107) (168) Income tax paid (623) (2,219) (2,419) ----------------------------------------- ------------- -------------- ------------- Net cash inflow from operating activities 15,698 12,437 8,235 ----------------------------------------- ------------- -------------- ------------- Cash flows from investing activities Payments for intangible assets (613) (1,217) (2,205) Payments for property, plant and equipment (160) (128) (247) Proceeds from disposal of property, plant and equipment - 13 14 Net cash outflow from investing activities (773) (1,332) (2,438) ----------------------------------------- ------------- -------------- ------------- Cash flows from financing activities Proceeds from issue of share capital 37 1,417 1,442 Purchase of own shares for cancellation (1,315) (1,011) (1,244) Dividends paid (1,697) (1,285) (2,785) ----------------------------------------- ------------- -------------- ------------- Net cash used in financing activities (2,975) (879) (2,587) ----------------------------------------- ------------- -------------- ------------- Net increase in cash and cash equivalents 11,950 10,226 3,210 Cash, cash equivalents and borrowings at the beginning of the period 6,913 4,535 4,535 Effects of exchange rate movements (286) (220) (832) ----------------------------------------- ------------- -------------- ------------- Cash, cash equivalents and borrowings at the end of the period 18,577 14,541 6,913 ----------------------------------------- ------------- -------------- ------------- Cash, cash equivalents and borrowings consist of: Cash, cash equivalents 21,709 16,331 28,560 Short term borrowings (3,132) (1,790) (21,647) --------------------------------------- -------- -------- --------- Cash, cash equivalents and borrowings at the end of the period 18,577 14,541 6,913 --------------------------------------- -------- -------- --------- The Character Group plc Consolidated statement of changes in equity Called Investment Treasury Capital Share Share Translation Profit up in shares redemption premium Merger based reserve and share own reserve account reserve payment loss Total capital shares GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 account GBP'000 GBP'000 GBP'000 GBP'000 ------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ---------- Balance as at 1 September 2015 (unaudited) 1,244 - (3,373) 1,704 14,642 651 2,631 1,374 (3,632) 15,241 ------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ---------- Profit for
the period - - - - - - - - 7,052 7,052 Exchange differences on translation of foreign operations - - - - - - - 204 (333) (129) Deferred tax credit relating to share options - - - - - - - - 30 30 Total comprehensive income/(expense) for the period - - - - - - - 204 6,749 6,953 ------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ---------- Transactions with owners Dividend paid - - - - - - - - (1,285) (1,285) Share based payment - - - - - - 74 - - 74 Shares issued 1 - 630 - 786 - - - - 1,417 Shares cancelled (10) - - 10 - - - - (1,011) (1,011) ------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ---------- Six months ended 29 February 2016 1,235 - (2,743) 1,714 15,428 651 2,705 1,578 821 21,389 ------------------ -------- ----------- --------- ----------- -------- --------- -------- ------------ -------- ---------- Balance as at 1 September 2015 (audited) 1,244 - (3,373) 1,704 14,642 651 2,631 1,374 (3,632) 15,241 --------------------- ------ -------- ------ ------- ---- ------ ------ -------- -------- Profit for the year after tax - - - - - - - - 10,787 10,787 Exchange differences on translation of foreign operations - - - - - - - (100) (576) (676) Deferred tax credit relating to share options - - - - - - - - (414) (414) Current tax credit relating to exercised share options - - - - - - - - 421 421 --------------------- ------ -------- ------ ------- ---- ------ ------ -------- -------- Total comprehensive income /(expense) for the year - - - - - - - (100) 10,218 10,118 --------------------- ------ -------- ------ ------- ---- ------ ------ -------- -------- Transactions with owners Share based payment - - - - - - 147 - - 147 Dividends - - - - - -- - - (2,785) (2,785) Shares issued 4 - 630 - 808 - - - - 1,442 Shares cancelled (13) - - 13 - - - - (1,244) (1,244) --------------------- ------ -------- ------ ------- ---- ------ ------ -------- -------- Year ended 31 August 2016 1,235 - (2,743) 1,717 15,450 651 2,778 1,274 2,557 22,919 --------------------- ------ -------- ------ ------- ---- ------ ------ -------- -------- Balance as at 1 September 2016 (unaudited) 1,235 - (2,743) 1,717 15,450 651 2,778 1,274 2,557 22,919 ------------------------ ------ -------- ------ ------- ---- ------ ------ -------- -------- Profit for the period - - - - - - - - 5,340 5,340 Exchange differences on translation of foreign operations - - - - - - - 19 (243) (224) Deferred tax credit relating to share options - - - - - - - - 77 77 ------------------------ ------ -------- ------ ------- ---- ------ ------ -------- -------- Total comprehensive income/(expense) for the period - - - - - - - 19 5,174 5,193 ------------------------ ------ -------- ------ ------- ---- ------ ------ -------- -------- Transactions with owners Dividend paid - - - - - - - - (1,697) (1,697) Share based payment - - - - - - 76 - - 76 Shares issued 4 - - - 33 - - - - 37 Shares cancelled (15) - - 15 - - - - (1,315) (1,315) ------------------------ ------ -------- ------ ------- ---- ------ ------ -------- -------- Six months ended 28 February 2017 1,224 - (2,743) 1,732 15,483 651 2,854 1,293 4,719 25,213 ------------------------ ------ -------- ------ ------- ---- ------ ------ -------- -------- The Character Group plc Notes to the Financial Statements 1. Basis of Preparation -------- -------------------------------------------------------- The financial information set out in this Half Yearly Financial Report has been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union and in accordance with the accounting policies which will be adopted in presenting the Group's Annual Report and Financial Statements for the year ending 31 August 2017. These are consistent with the accounting policies used in the financial statements for the year ended 31 August 2016 as described in those annual financial statements. As permitted, this Half Yearly Financial Report has been prepared in accordance with the AIM rules and not in accordance with IAS 34 'Interim Financial Reporting'. The consolidated financial statements are prepared under the historical cost convention, as modified by the revaluation of certain financial instruments and share based payments at fair value. These Half Yearly Financial Statements and the financial information for the six months ended 28 February 2017 do not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006 and are unaudited. These unaudited Half Yearly Financial statements were approved by the Board of Directors on 27 April 2017. The information for the year ended 31 August 2016 is based on the consolidated financial statements for that year on which the Group's auditor's report was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. ------------------------------------------------------------------ 2. Going concern The Directors consider that the Group has adequate resources to continue operating for the foreseeable future and therefore continue to adopt the going concern basis in preparing the financial statements. --------------------------------------------------------------- 3. Dividends ------------------------------ six months six months 12 months ended ended ended 28 February 29 February 31 August 2017 2016 2016 (unaudited) (unaudited) (audited) GBP'000 GBP'000 GBP'000 ------------- ------------- On equity shares: Final dividend paid for the year ended 31 August 2016 * 8.00 pence (2015: 6.00p) per share 1,697 1,285 1,285 * Interim - - 1,500 ---------------------------------------------------- ------------- ------------- ----------- 1,697 1,285 2,785 ---------------------------------------------------- ------------- ------------- ----------- 4. Earnings per share ------------------ ---------------------------------------------------------- Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares during the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all dilutive potential ordinary shares. The Group has only one category of dilutive potential ordinary shares, being share options granted where the exercise price is less than average price of the company's ordinary shares during this period. The calculations are based on the following: six months six months 12 months ended ended ended 28 February 29 February 31 August
2017 2016 2016 (unaudited) (unaudited) (audited) GBP000's GBP000's GBP000's ------------------- ------------ ------------- ------------- ------------- Profit attributable to equity shareholders of the parent 5,340 7,052 10,787 --------------------------------- ------------- ------------- ------------- Weighted average number of shares In issue during the year - basic 21,205,059 21,467,202 21,445,576 Dilutive potential ordinary shares 619,240 1,213,847 775,967 --------------------------------- ------------- ------------- ------------- Weighted average number of ordinary for diluted earnings per share 21,824,299 22,681,049 22,221,543 --------------------------------- ------------- ------------- ------------- Basic earnings per share (pence) 25.18 32.85 50.30 ---------------------------- ------ ------ ------ Diluted earnings per share (pence) 24.47 31.09 48.54 ---------------------------- ------ ------ ------ 5. Electronic Communications --- -------------------------------------------------------------------- The Half Yearly Financial Report for the six months ended 28 February 2017 will shortly be available for viewing and download on the Group's website, www.thecharacter.com. --- -------------------------------------------------------------------- Independent Review Report to The Character Group plc ---------------------------------------------------------------- Introduction We have been engaged by the Company to review the condensed set of financial statements in the Half Yearly Financial Report for the six months ended 28 February 2017, which comprises the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity and related notes 1 to 4. We have read the other information contained in the Half Yearly Financial Report which comprises the Board's letter and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. This report is made solely to the Company in accordance with guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our review work has been undertaken so that we might state to the company those matters we are required to state to them in a review report and for no other purposes. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed. Directors' responsibilities The Half Yearly Financial Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the AIM rules of the London Stock Exchange which requires that the accounting policies and presentation applied to the financial information in the Half Yearly Financial Report are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts. As disclosed in Note 1, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this Half Yearly Financial Report has been prepared in accordance with the AIM rules of the London Stock Exchange. Our Responsibility Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half Yearly Financial Report based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Review conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the Half Yearly Report for the six months ended 28 February 2017 is not prepared, in all material respects, in accordance with the AIM rules of the London Stock Exchange. MHA MacIntyre Hudson Statutory Auditors and Chartered Accountants New Bridge Street House 30-34 New Bridge Street London, EC4V 6BJ 27 April 2017 ================================================================
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUAWCUPMPPQ
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April 27, 2017 02:02 ET (06:02 GMT)
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