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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| H&t Group Plc | LSE:HAT | London | Ordinary Share | GB00B12RQD06 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 5.00 | 1.23% | 411.00 | 406.00 | 419.00 | 416.00 | 415.00 | 416.00 | 50,323 | 16:35:23 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Finance Services | 220.78M | 21.08M | 0.4793 | 8.66 | 182.55M |
From Apr 2019 to Apr 2024
TIDMHAT
RNS Number : 6728X
H&T Group PLC
14 August 2018
14 August 2018
H&T Group plc
("H&T" or "the Group" or "the Company")
UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHSED 30 JUNE 2018
H&T Group plc today announces its interim results for the six months ended 30 June 2018.
The Group financial statements have been prepared, as required, for the first time under IFRS 9 ('Financial Instruments - Recognition and Measurement').
John Nichols, H&T chief executive, said:
"We have made a solid start to the year due to the resilient nature of our product set and our digital initiatives.
Revenue is up GBP10.8m, across all key product segments. Profit before tax is up to GBP6.1m (H1 2017: GBP5.5m) on an IFRS 9 basis.
Steady pawnbroking growth, driven by increasing numbers of new customers and the continuing growth of the personal loans book, is pleasing. The personal lending book has increased by 19% since December 2017. We have maintained this growth, while ensuring we remain disciplined around our credit-risk management practices. The broadening of our product suite into lower APR categories has proven successful, with 54% of our personal lending now out of the High-Cost Short-Term credit category. This is important as we strive towards our vision of helping our customers to rebuild their credit rating.
We have further developed our digital platforms by upgrading and revamping our retail site, www.est1897.co.uk and our main H&T site. Our click-to-bricks retail and lending offering has been further expanded by introducing click-and-collect foreign currency. We will continue to invest in digital technology as we refine the pawnbroking model and leverage our store estate."
KEY FINANCIAL RESULTS
-- Profit before tax up 10.9% to GBP6.1m (H1 2017: GBP5.5m) -- Basic EPS of 13.51p (H1 2017: 11.70p)
-- Net pledge book, including accrued interest increased by 8.6% to GBP47.8m (30 June 2017: GBP44.0m)
-- Personal Loan book increased 78.0% to GBP17.8m (30 June 2017: GBP10.0m)
-- Net debt increased to GBP16.8m (30 June 2017: GBP11.5m) due to personal loan and other working capital increases
-- Interim dividend of 4.4p (2017 interim: 4.3p)
OPERATIONAL HIGHLIGHTS
-- Growth in pawnbroking customer lending and new customers -- Development of our Expert Eye valuation system
-- Enhancement of the est1897.co.uk website with typically more than 2,000 high-end watches and jewellery pieces now available online or through click-and-collect
-- Growth of our personal loan product, in part driven by increasing numbers of customers being offered our lower APR products
Enquiries:
H&T Group plc
Tel: 0870 9022 600
John Nichols, chief executive
Steve Fenerty, finance director
Numis Securities (broker and nominated adviser)
Tel: 020 7260 1000
Mark Lander, corporate broking
Freddie Barnfield, nominated adviser
Haggie Partners (financial public relations)
Tel: 020 7562 4444
Damian Beeley
Sarah Shephard
Chanice Smith
INTERIM REPORT
Introduction
We have continued to achieve growth from all core revenue streams because of our ongoing focus on in-store execution excellence alongside our continuing development in digital technology. Bringing together enhanced digital offerings with our 182 stores is key.
The trading environment has become more challenging with high street footfall reductions and localised competitor activity.
We increased our store estate via an acquisition of a single site business and continue to offer high-end lending through our office in Bond Street, London.
IFRS 9
These statements have been prepared under IFRS 9 'Financial instruments', with prior periods restated. IFRS 9 introduced an expected loss model where impairment is recognised on initial recognition of a personal loan or pledge based on the probability and timing of default together with the expected loss. The impact on H1 2017 and H1 2018 results is summarised below.
Hot Features
Premium
Revenue less Impairment
IFRS IAS
9 39 Change
GBP'000 GBP'000 GBP'000
6 months ended 30 June: 2017
----------------------------
Pawnbroking 14,465 14,708 (243)
Personal Lending 1,849 2,184 (335)
--------
(578)
6 months ended 30 June: 2018
----------------------------
Pawnbroking 16,182 15,471 711
Personal Lending 3,123 3,733 (610)
--------
101
We have placed comparatives on the H&T website at https://handt.co.uk/about/investor-relations/reports/announcements which explains the differences in accounting treatments between IAS 39 and IFRS 9 with the effect on full year 2017 as well as H1 2017 and H1 2018.
FINANCIAL RESULTS
The Group has reported profit before tax of GBP6.1m (H1 2017: GBP5.5m), a 10.9% increase, reflecting a good operational performance.
Gross profit increased by GBP5.4m, 14.5%, to GBP42.6m (H1 2017: GBP37.2m). The average H1 2018 gold price has decreased 2.6% to GBP958 per troy ounce for H1 2018 (H1 2017: GBP984).
Total direct and administrative expenses increased by GBP4.6m, 14.6%, to GBP36.1m (H1 2017: GBP31.5m). Of this increase, GBP2.1m relates to additional loan impairment charges, due to the change in IFRS 9 accounting treatment, and in line with the growth in the personal loan book. There has been GBP1.2m of cost increases because of store staff investment including the adoption of the living wage and increased London salary weighting and higher store operating costs, including higher utility costs and cash delivery expenditures. GBP0.6m of the uplift is associated with additional staffing and marketing costs associated with the personal loans growth. There has been GBP0.4m of one-off costs associated with staff settlement and recruitment fees and an increase of GBP0.3m in central staff costs.
The Group's balance sheet remains strong with net debt at GBP16.8m (30 June 2016: GBP11.5m) and a net debt to EBITDA ratio, calculated in accordance with bank covenant arrangements, of 0.97x (30 June 2017: 0.75x). The increased borrowings have principally been invested into working capital of the business, including growth of the personal loan book. The bank debt position is well within the covenant test of 3.0x. The Group has GBP9.0m of headroom available on its debt facility of GBP35.0m at 30 June 2018. We do not anticipate this position materially changing by year end.
Dividend
The Board has approved an interim dividend of 4.4 pence (2017 interim: 4.3 pence). This will be payable on 5 October 2018 to all shareholders on the register at the close of business on 7 September 2018.
REVIEW OF OPERATIONS
Pawnbroking
Pawnbroking remains a core product for H&T and we are pleased to report that the gross pledge book increased to GBP47.8m, including accrued interest, (30 June 2017: GBP44.0m). This growth has been achieved because of the following factors:
-- A consistently high redemption rate of 84%
-- The continued growth in customer lending sourced via our appointed introducers and online marketing activity has increased our new customer count
-- Our average number of customer visits has increased
-- The quality-watch segment of the book has improved with the support of the Expert Eye system and additional specialist valuation staff which has driven a 25% increase in this category of lending
Pawnbroking revenue less impairment increased GBP1.7m to GBP16.2m (H1 2017: GBP14.5m) resulting in an annualised risk-adjusted margin (RAM) of 67.6% (H1 2017: 66.5%).
Pawnbroking summary:
6 months ended 30 June: Restated
for IFRS
9
2018 2017 * Change
GBP'000 GBP'000 %
-------------------------- -------- ---------- --------
Period-end net pledge
book(1) 47,847 44,027 8.7%
Average monthly net
pledge book 47,836 43,521 9.9%
Revenue less impairment 16,182 14,465 11.9%
Annualised Risk-adjusted
margin(2) 67.7% 66.5%
Notes to table
1 - Includes accrued
interest
2 - Revenue less impairment as a percentage
of average loan book
Pawnbroking scrap
Pawnbroking scrap produced gross profits of GBP1.0m (H1 2017: GBP1.2m) for the half year, on sales of GBP8.0m (H1 2017: GBP5.9m). The reduced margin from 20% to 13% is a result of the reduction in the gold price between H1 2017 and H1 2018.
Retail
Retail sales increased 7.2% to GBP16.4m (H1 2017: GBP15.3m) and gross profits increased by 1.7% to GBP6.0m (H1 2017: GBP5.9m). Margin at 36.6% (H1 2017: 38.6%) reflects an increased proportion of new items to supplement unredeemed pledge stock.
Improvements have been made to both our www.handt.co.uk and www.est1897.co.uk websites. We typically hold more than 2,000 high-end pre-owned watches and jewellery items on our website, available online via our own websites and www.chrono24.co.uk.
Further enhancements to our www.est1897.co.uk and to our Customer Relationship Management system are planned for H2 2018 as we ensure that the customer experience is as good as it can be.
Personal Loans
Net revenue increased 72.2% to GBP3.1m (H1 2017: GBP1.8m), and the loan book increased 79.1% to GBP17.8m (30 June 2017: GBP10.0m). The principal factor in the loan book growth has been the continuing development of the store business, supplemented by online and broker-to-store third-party relationships.
We have made progress in delivery of the longer-term strategy of helping our customers to rebuild their credit rating, with more customers obtaining access to one of the two lower interest rate and longer-term products launched in 2017. As a result, the proportion of loans that fall under the definition of high-cost short-term credit in H1 2018 fell to 50% (H1 2017 71%).
The proportionate growth in the loan book, with the average monthly net book having doubled on H1 2017, is higher than revenue growth. We do not anticipate this level of book growth to continue. The reduction in the annualised risk-adjusted margin to 37% (H1 2017: 44%) is the result of the increased proportion of new customers and repeat customers being offered our lower APR products. Returns and default levels are in line with management expectations for credit quality and collections performance.
Organic traffic to our website www.handt.co.uk continues to increase and we believe having a direct online loan offering and the ability to direct applicants from online into store is an important part of our growth strategy. The online loan book has increased from GBP0.9m to GBP1.1m since 30 June 2017 as we take a measured and prudent approach to our online lending scorecard.
Store lending remains the key driver for revenue growth, with the book having increased 85% since 30 June 2017.
We have continued to invest in our Customer Relations Management system so that we can more effectively engage with and redirect online and via broker loan enquiries to local branches where appropriate. The process of encouraging a potential customer from the website to a physical branch is an important component of our strategy, blending a digital offering with our store estate.
Personal Loans summary:
6 months ended
30 June:
2018 2017 Change
GBP'000 GBP'000 %
----------------------------- -------- -------- --------
Period-end net loan
book 17,757 10,013 77.3%
Average monthly net
loan book 16,639 8,316 100.1%
Interest before impairment 10,566 6,672 58.4%
Impairment (7,443) (4,823) 54.3%
Revenue less impairment 3,123 1,849 68.9%
Annualised Risk-adjusted
margin(1) 37.5% 44.5%
Notes to table
1 - Revenue less impairment as a percentage
of average loan book
Gold purchasing
Gold purchasing profits increased to GBP2.1m (H1 2017: GBP1.8m). The additional profit was mainly the result of increased volumes of gold scrapped, up 29.3% to GBP10.6m (H1 2017: GBP8.2m).
Typically, the impact of a decrease in gold price to purchasing profits is relatively short lived. There is a delay between purchasing gold in store and realising the value through the market; if the gold price falls during this period then margins are reduced. As the gold price stabilises, the rate that is paid for gold in store increases and we return to normal margins.
Other services
Total revenues from other services increased to GBP2.8m (H1 2017: GBP2.7m) with a GBP0.3m increase in Foreign Currency (FX) transaction profit offset by reductions in cheque cashing and Western Union income.
FX profit increased by 23% to GBP1.6m while the value of currency traded increased by 30%. This is a result of our strategy to ensure our rates remain competitive as we continue to raise customer awareness in the product. The product is relatively new to the business and we continue to optimise currency holdings in store, develop additional services such as the buy-back guarantee and improve customer awareness through development of marketing and point-of-sale materials, including digital boards. We have recently extended our online FX click-and-collect capability.
Buyback gross profits were flat at GBP0.8m. Customer transactions were down 19.5% on H1 2017, but the testing processes implemented during 2017 and reduction in the types of items we will accept has meant we are achieving improved value from disposition.
REGULATION
Assessing creditworthiness in consumer credit
In July 2017, the FCA published its consultation paper on changes to its rules and guidance on assessing creditworthiness in consumer credit. In particular they want to clarify:
-- the distinction between affordability and credit risk -- the factors that should be used when deciding the proportionality of assessments -- the role of income and expenditure information -- the regulator's expectations around firms' policies and procedures
We have designed our Personal Loan policies and procedures to include a robust assessment both of affordability and creditworthiness, so we are well placed to ensure our compliance with the final policy statement from the FCA.
Our strategy to evolve the Personal Loans product to lower interest rates allows existing customers to move away from high-cost credit where possible. Ensuring that we adequately assess creditworthiness and affordability and customers are provided with loans they can afford is in the best interests of our customers and is a more sustainable product for our business.
STRATEGY AND OUTLOOK
The demand for small-sum, short-term cash loans remains strong. The Company continues to focus and seek strategies to grow its pawnbroking offering while expanding its unsecured lending product and retail offering by focusing on digital and online strategies to complement its store estate.
We will continue to work towards our vision of helping our customers to rebuild their credit history by expanding the proportion of them on products that falls outside high cost short term lending. We will achieve this by continuing to focus on operational effectiveness aligned with the training, development and progression of our valuable staff.
Current trading is in line with management's expectations.
Interim Condensed Financial Statements
Unaudited statement of comprehensive income
For the 6 months ended 30 June 2018
6 months 6 months 12 months
ended 30 ended 30 ended 31
June 2018 June 2017 December
2017
Note Total Total Total
Unaudited Unaudited Restated*
Restated*
GBP'000 GBP'000 GBP'000
Revenue 2 68,486 57,706 124,689
Cost of sales (25,915) (20,529) (46,567)
________ ________ ________
Gross profit 2 42,571 37,177 78,122
Other direct expenses (28,783) (25,413) (53,440)
Administrative expenses (7,341) (6,052) (12,233)
________ ________ ________
Operating profit 3 6,447 5,712 12,449
Investment revenues 3 - -
Finance costs 5 (348) (261) (567)
________ ________ ________
Profit before taxation 6,102 5,451 11,882
Tax on profit 6 (1,126) (1,193) (2,400)
________ ________ ________
Total comprehensive income for
the period 4,976 4,258 9,482
________ ________ ________
Pence Pence Pence
Earnings per ordinary share
- basic 7 13.51 11.70 25.99
Earnings per ordinary share
- diluted 7 13.45 11.67 25.88
All results derive from continuing operations.
*IFRS 9 restated
Unaudited condensed consolidated statement of changes in equity
For the 6 months ended 30 June 2018
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
Note 2018 2017 2017
Unaudited Audited
Unaudited Restated* Restated*
GBP'000 GBP'000 GBP'000
Opening total equity 99,689 92,768 92,768
Total comprehensive income for the
period 4,976 4,258 9,482
Issue of share capital 523 337 907
Share option movement taken directly
to equity (13) (18) 96
Dividends paid 9 (2,329) (1,964) (3,564)
Closing total equity 102,846 95,381 99,689
Unaudited condensed consolidated balance sheet
At 30 June 2018
At 30 June At 30 June At 31 December
2018 2017 2017
Unaudited
Unaudited Restated* Restated*
Note GBP'000 GBP'000 GBP'000
Non-current assets
Goodwill 17,643 17,676 17,643
Other intangible assets 449 429 331
Property, plant and equipment 6,660 6,417 6,381
Deferred tax assets 1,373 1,168 1,313
26,125 25,690 25,668
Current assets
Inventories 33,035 33,175 34,102
Trade and other receivables 68,535 56,453 64,470
Other current assets 841 1,192 665
Cash and cash equivalents 9,272 9,496 8,676
111,683 100,316 107,913
Total assets 137,808 126,006 133,581
Current liabilities
Trade and other payables (7,086) (7,227) (9,731)
Current tax liabilities (726) (1,163) (1,038)
(7,812) (8,390) (10,769)
Net current assets 103,871 91,926 97,144
Non-current liabilities
Borrowings 4 (25,831) (20,762) (21,810)
Provisions (1,319) (1,473) (1,313)
(27,150) (22,235) (23,123)
Total liabilities (34,962) (30,625) (33,892)
Net assets 102,846 95,381 99,689
EQUITY
Share capital 8 1,883 1,860 1,872
Share premium account 27,153 26,082 26,641
Employee Benefit Trust share
reserve (35) (35) (35)
Retained earnings 73,845 67,474 71,211
Total equity attributable to
equity holders of the parent 102,846 95,381 99,689
Unaudited condensed consolidated cash flow statement
For the 6 months ended 30 June 2018
6 months 6 months 12 months
Note ended ended ended
30 June 30 June 31 December
2018 2017 2017
Unaudited
Unaudited Restated* Restated*
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit for the period 4,976 4,258 9,482
Adjustments for:
Investment revenues (3) - -
Finance costs 348 261 567
Movement in provisions 6 (23) (184)
Income tax expense 1,126 1,193 2,400
Depreciation of property, plant
and equipment 1,160 1,231 2,428
Amortisation of intangible assets 72 101 200
Loss on disposal of fixed assets 81 124 69
Operating cash inflows before movements
in working capital 7,766 7,145 14,962
Decrease/(increase) in inventories 1,112 (3,383) (4,311)
(Increase)/decrease in other current
assets (176) (344) 184
Increase in receivables (3,756) (3,946) (11,982)
(Decrease)/Increase in payables (2,590) (1,869) 618
Cash generated from/(used in) operations 2,356 (2,397) (529)
Income taxes paid (1,512) (1,144) (2,508)
Debt restructuring cost (34) - -
Interest paid (279) (207) (456)
Net cash generated from/(used in)
operating activities 531 (3,748) (3,493)
Investing activities
Interest received 3 - -
Purchases of property, plant and equipment (1,563) (723) (1,768)
Proceeds on disposal of trade - 7 7
Acquisition of trade and assets of business (569) (21) (21)
Net cash used in investing activities (2,129) (737) (1,782)
Financing activities
Dividends paid 9 (2,329) (1,964) (3,564)
Net increase in borrowings 4,000 6,000 7,000
Issue of shares 523 337 907
Net cash generated from financing activities 2,194 4,373 4,343
Net increase/(decrease) in cash and cash
equivalents 596 (112) (932)
Cash and cash equivalents at beginning
of period 8,676 9,608 9,608
Cash and cash equivalents at end of period 9,272 9,496 8,676
Unaudited notes to the condensed interim financial statements
For the 6 months ended 30 June 2018
Note 1 Basis of preparation
The interim financial statements of the group for the six months ended 30 June 2018, which are unaudited, have been prepared in accordance with the International Financial Reporting Standards ('IFRS') accounting policies adopted by the group and set out in the annual report and accounts for the year ended 31 December 2017, except for the adoption of IFRS 9. The group does not anticipate any change in these accounting policies for the year ended 31 December 2018. As permitted, this interim report has been prepared in accordance with the AIM rules but not in accordance with IAS 34 "Interim financial reporting". While the financial figures included in this preliminary interim earnings announcement have been computed in accordance with IFRSs applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as that term is defined in IFRSs.
The financial information contained in the interim report also does not constitute statutory accounts for the purposes of section 434 of the Companies Act 2006. The financial information for the year ended 31 December 2017, prior to the restatement as a result of the adoption of IFRS 9, is based on the the statutory accounts for the year ended 31 December 2017. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
After conducting a further review of the group's forecasts of earnings and cash over the next twelve months and after making appropriate enquiries as considered necessary, the directors have a reasonable expectation that the company and group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the half yearly condensed financial statements.
Unaudited notes to the condensed interim financial statements
For the 6 months ended 30 June 2018
Note 2 Segmental Reporting
Consolidated
for the
6 months
ended
Gold Pawnbroking Personal Other 30 June
2018 Pawnbroking purchasing Retail scrap Loans Services 2018
Revenue GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External revenue 20,092 10,611 16,420 7,954 10,566 2,843 68,486
Total revenue 20,092 10,611 16,420 7,954 10,566 2,843 68,486
Gross profit 20,092 2,107 5,965 998 10,566 2,843 42,571
Impairment (3,910) - - - (7,443) - (11,353)
Segment result 16,182 2,107 5,965 998 3,123 2,843 31,218
Other direct expenses excluding impairment (17,430)
Administrative expenses (7,341)
Operating profit 6,447
Investment revenue 3
Finance costs (348)
Profit before taxation 6,102
Tax charge on profit (1,126)
Profit for the financial year and
total comprehensive income 4,976
Consolidated
for the
6 months
ended
Personal Other 30 June
Pawnbroking Gold Pawnbroking loans Services 2017
2017 Restated* Purchasing Retail scrap Restated* Restated* Restated*
Revenue GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External revenue 18,874 8,241 15,254 5,940 6,672 2,725 57,706
Total revenue 18,874 8,241 15,254 5,940 6,672 2,725 57,706
Gross profit 18,874 1,820 5,928 1,158 6,672 2,725 37,177
Impairment (4,409) - - - (4,823) - (9,232)
Segment result 14,465 1,820 5,928 1,158 1,849 2,725 27,945
Other direct expenses excluding impairment (16,181)
Administrative expenses (6,052)
Operating profit 5,712
Investment revenue -
Finance costs (261)
Profit before taxation 5,451
Tax charge on profit (1,193)
Profit for the financial year and
total comprehensive income 4,258
Unaudited notes to the condensed interim financial statements (continued)
For the 6 months ended 30 June 2018
Note 2 Segmental Reporting (continued)
For the
Personal Other year
Pawnbroking Gold Pawnbroking Loans Services ended 2017
2017 Restated* purchasing Retail scrap Restated* Restated* Restated*
Revenue GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
External revenue 38,465 17,651 35,407 11,696 15,574 5,896 124,689
Total revenue 38,465 17,651 35,407 11,696 15,574 5,896 124,689
Gross profit 38,465 3,397 12,859 1,931 15,574 5,896 78,122
Impairment (9,167) - - - (11,679) - (20,846)
Segment result 29,298 3,397 12,859 1,931 3,895 5,896 57,276
Other direct expenses excluding impairment (32,594)
Administrative expenses (12,233)
Operating profit 12,449
Finance costs (567)
Profit before taxation 11,882
Tax charge on profit (2,400)
Profit for the financial year and
total comprehensive income 9,482
Note 3 Operating profit and EBITDA
EBITDA
The Board consider EBITDA to be a key performance measure as the Group borrowing facility includes a number of loan covenants based on it.
EBITDA is defined as Earnings Before Interest, Taxation, Depreciation and Amortisation. It is calculated by adding back depreciation and amortisation to the operating profit as follows:
6 months ended 30 June 2018 6 months 6 months 12 months
Unaudited ended ended ended
30 June 30 June 31 December
2018 2017 2017
Restated* Restated*
Unaudited Unaudited Audited
Total Total Total
GBP'000 GBP'000 GBP'000
Operating profit 6,447 5,712 12,449
Depreciation and amortisation 1,232 1,332 2,628
EBITDA 7,679 7,044 15,077
Unaudited notes to the condensed inter im financial statements (continued)
For the 6 months ended 30 June 2018
Note 4 Borrowings
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2018 2017 2017
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Long term portion of bank loan 26,000 21,000 22,000
Unamortised issue costs (169) (238) (190)
--------- --------- ------------
Amount due for settlement after more
than one year 25,831 20,762 21,810
========= ========= ============
Note 5 Finance costs
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2018 2017 2017
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Interest payable on bank loans and overdraft 294 213 472
Other interest 1 1 1
Amortisation of debt issue costs 53 47 94
Total finance costs 348 261 567
Unaudited notes to the condensed interim financial statements (continued)
For the 6 months ended 30 June 2018
Note 6 Tax on profit
The taxation charge for the 6 months ended 30 June 2018 has been calculated by reference to the expected effective corporation tax and deferred tax rates for the full financial year to end on 31 December 2018. The underlying effective full year tax charge is estimated to be 19% (six months ended 30 June 2017: 19.25%).
Note 7 Earnings per share
Basic earnings per share is calculated by dividing the profit for the period attributable to equity shareholders by the weighted average number of ordinary shares in issue during the period.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. With respect to the group these represent share options granted to employees where the exercise price is less than the average market price of the company's ordinary shares during the period.
Reconciliations of the earnings per ordinary share and weighted average number of shares used in the calculations are set out below:
Unaudited Unaudited (Restated*) (Restated*)
6 months ended 30 6 months ended 30 12 months ended 31
June 2018 June 2017 December 2017
Earnings Weighted Per-share Earnings Weighted Per-share Earnings Weighted Per-share
GBP'000 average amount GBP'000 average amount GBP'000 average amount
number pence number pence number pence
of shares of shares of shares
Earnings
per share
-
basic 4,976 36,832,563 13.51 4,258 36,383,440 11.70 9,482 36,479,426 25.99
Effect of
dilutive
securities
Options - 165,465 (0.06) - 83,299 (0.03) - 155,374 (0.11)
Earnings
per share
diluted 4,976 36,998,028 13.45 4,258 36,466,739 11.67 9,482 36,634,800 25.88
Unaudited notes to the condensed interim financial statements (continued)
For the 6 months ended 30 June 2018
Note 8 Share capital
At At At
30 June 2018 30 June 2017 31 December
2017
Unaudited Unaudited Audited
Allotted, called up and fully
paid
(Ordinary Shares of GBP0.05
each)
GBP'000 Sterling 1,883 1,860 1,872
Number 37,658,511 37,199,944 37,437,760
Note 9 Dividends
On 9 August 2018, the directors approved a 4.4 pence interim dividend (30 June 2017: 4.3 pence) which equates to a dividend payment of GBP1,657,000 (30 June 2017: GBP1,600,000). The dividend will be paid on 5 October 2018 to shareholders on the share register at the close of business on 7 September 2018 and has not been provided for in the 2018 interim results. The shares will be marked ex-dividend on 6 September 2018.
On 3 May 2018, the shareholders approved the payment of a 6.2 pence final dividend for 2017 which equates to a dividend payment of GBP2,329,000 (2016: GBP1,964,000). The dividend was paid on 1 June 2018.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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IR GGUCWRUPRGMW
(END) Dow Jones Newswires
August 14, 2018 02:00 ET (06:00 GMT)
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