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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Hunters Property Plc | LSE:HUNT | London | Ordinary Share | GB00BYMW5L71 | ORD 4P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 70.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMHUNT
RNS Number : 9133Z
Hunters Property PLC
06 September 2018
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR)
Hunters Property PLC
Interim Results
Hunters Property Plc ("Hunters" or the "Company" or the "Group"), one of the UK's largest franchised sales and lettings agency businesses, is pleased to announce its interim results for the six months ended 30 June 2018.
'Robust half year results underpin confidence for full year outcome'
Financial Highlights:
-- Network Income up +2% to GBP17.9m (six months to June 2017: GBP17.6m); -- Revenue GBP6.7m (2017: GBP6.7m); -- Adjusted operating profit* up +7% to GBP854,000 (2017: 800,000); -- Adjusted earnings per share 2.03p (2017: 2.09p); and -- Interim dividend up +14% to 0.8p per share (2017: 0.7p per share).
Operational Highlights:
-- Opened a total of eight new branches in this period, including the conversions of six existing businesses expanding our branch network to 203 (June 2017: 206);
-- Further developed our Online capability as well as launching our revamped website;
-- Expanded our acquisition fund to network members for businesses seeking finance to acquire lettings books and or competitors and so consolidate the market;
-- Successfully completed 11 lettings book purchases since launch; -- Grown lettings income across the network by 14% for the period; and -- Returned a Customer Satisfaction Rating of 96% (Dec 2017: 95%).
Outlook
-- Board remains confident the 2(nd) half will, as usual, outperform the first and remains in line to exceed last year's full year performance despite completed sales for the market as a whole reporting a 9% decline;
-- Independent businesses continue to join the Hunters network to mitigate the current uncertainty and challenging backdrop; and
-- Strong net asset position and facilities available to continue our growth plans.
* (operating profit before depreciation, interest, amortisation and acquisition costs and share based payments)
Glynis Frew, Chief Executive of Hunters Property Plc, commented:
"We have delivered robust results in the six months to June 2018 against a backdrop of markets that have continued to contract in terms of completed sales transactions which HMRC reported as at June as being down 8.8%* as against the same period last year. We are underpinned by our strategy to grow and develop the franchise network and we are bolstered by the pipeline of prospective franchisees interested in joining Hunters. We are encouraged with the take-up from our network as looking to expand and taking advantage of our facility to do so. We are especially encouraged at the increase in strength of prospects we have registered reinforcing our view, especially in this environment, of the comparative benefits of joining the Hunters network.
Our view is that the challenging market is unlikely to improve in the foreseeable future, but our intention is to continue the industry's consolidation. The continuing work and support displayed by our staff and the franchise network is a great credit to the Group. I offer, on behalf of the Board, our gratitude to everyone that has been involved."
* Source: HMRC UK Property Transactions Statistics
For further details:
Hunters Property Plc Tel: 01904 756 197 Kevin Hollinrake, Chairman Glynis Frew, Chief Executive Officer Ed Jones, Chief Financial Officer Dowgate Capital Stockbrokers Tel: 020 3903 7715 David Poutney and James Serjeant (Corporate Broking) SPARK Advisory Partners Limited Tel: 020 3368 3551 Mark Brady and Neil Baldwin (Nominated Adviser) Smithfield Consultants Limited Tel: 020 7360 4900 Alex Simmons
Chairman's Statement
Overview
On behalf of the Board I am pleased to comment on robust half year results for 2018. In this period the Group added another eight branches to the network making a total of 122 in the last four and a half years. Network Income in the six months to June grew by 2% to GBP17.9m (six months to June 2017: GBP17.6m). The average per branch for this first six months has increased 3% to GBP88k (six months to June 2017: GBP85k) and the income balance of 66:34 sales to lettings for this period (2017: 69:31).
Turnover was maintained at GBP6.7m (2017: GBP6.7m) with an increase in adjusted operating profit of 7% to GBP854,000 (2017: GBP800,000). The Group's strategy is to grow a predominantly franchise network and during this period opened eight branches (2017: nine) including six (2017: six) that were existing businesses converting to Hunters. At the end of June, the network stood at 203 (June 2017: 206) branches, of which 192 (2017: 195) are franchised.
Our strategy combines leading online technologies, with particular focus on developing new ways of working which reduce labour costs, all combined with genuine local area expertise. We continued our significant investment in technology including online booking of valuations and new customer portals, allowing customers to track their property transactions 24/7 and development of our new website and online capabilities.
We continue to drive professional standards through our industry leading Hunters Training Academy, which has seen over 4,000 courses completed by the network in the first six months of this year (an increase of 70% versus 2017). Our web users increased by 13% in the period to July against the same period last year and our customer service rating to June has increased to 96% (to December 2017: 95%), a consistently market leading performance.
Outlook
Given the market challenges we are delighted with our results and our strong pipeline of transactions due to move to sales revenue that give the management team confidence for H2. Consequently, the Board is declaring an interim dividend of 0.8p (2017: 0.7p) per share, an increase of 14%. The dividend will be paid on 19 October 2018 to shareholders on the register on 21 September 2018.
It is encouraging that good quality independent businesses see the benefit of joining the Hunters network as evidenced by the number and calibre of enquiries we are receiving. We are delighted with the take up of our recently launched acquisition fund for purchases of letting portfolios by the network and we continue to look for further strategic, earnings enhancing acquisitions should they become available.
I look forward to updating you again in due course.
Kevin Hollinrake
Chairman
Financial Report
Hot Features
Premium
H1 2018 H1 2017
Network Income GBP17.9m GBP17.6m +2%
Sales GBP6,699,000 GBP6,688,000 +0%
Adjusted operating profit GBP854,000 GBP800,000 +7%
Profit before tax, adjusted GBP714,000 GBP663,000 +8%
Profit before tax GBP263,000 GBP191,000 +38%
Cash generated (GBP465,000) (GBP301,000)
Net debt GBP2,997,000 Dec-17 GBP2,278,000
Shareholders' funds GBP7,393,000 Dec-17 GBP7,596,000
Shares in issue 31,827,088 31,691,138
Weighted average number of
shares 31,818,043 30,241,422
Earnings after tax GBP207,000 GBP157,000 +32%
Adjusted earnings (Earnings
after tax excluding amortisation,
acquisition costs, finance
timing and investment income) GBP646,000 GBP631,000 +2%
EPS 0.65p 0.52p +25%
Adjusted EPS 2.03p 2.09p (3%)
Dividend 0.8p 0.7p +14%
Branches 203 206 (1%)
Revenue
Network income from sales and lettings across the network rose by 2% to GBP17.9m as against a market as reported down 9% and GBP17.6m for the same first half period last year. Turnover remained flat at GBP6.7m (2017: GBP6.7m) due to the effect of well documented challenging market conditions.
We continued the strategy of converting independent agents to new franchise branches and in the six month period to June 2018 opened six (2017: six). This brings the total number of branches to 203 (2017: 206).
Profit before tax, adjusted to exclude amortisation, amortised finance costs, acquisition costs and other finance income
Adjusted profit before tax for the six months ended June 2018 was GBP714,000, an increase of 8% on the equivalent period last year (2017: GBP663,000).
Adjusted operating profit
Adjusted operating profit for the six months to June 2018 was GBP854,000, an increase of 7% on the same period last year (2017: GBP800,000).
Earnings per share
Basic earnings per share for the six months ended 30 June 2018 was 0.65p (2017: 0.52p). Adjusted earnings per share, excluding amortisation and acquisition costs, finance timing investment income and share-based payment expenses for the six months to June 2018 was 2.03p (2017: 2.09p).
Dividend
The Board declares an interim dividend of 0.8p (Interim 2017: 0.7p) per share, an increase of 14% as part of its policy to pay a progressive dividend whilst maintaining dividend cover of at least two times. The dividend will be payable on 19 October 2018 to shareholders on the register on 21 September 2018.
Cash flow
The Company generated net cash from operations of GBP222,000 during the six months to June 2018. We repaid GBP325,000 in debt (2017: GBP45,000). There were further debt drawdowns in the six months to June 2018 totalling GBP564,000, which was used along with the operating cash inflow to fund the opening of more franchisee offices during the first six months of 2018.
Liquidity and capital reserves
As at 30 June 2018, the Group's cash balance was GBP1,117,000 (June 2017: GBP886,000) with net debt of GBP2,997,000 (December 2017: GBP2,278,000).
Risks
The primary risk to the business continues to be the state of the UK property market. Some uncertainty remains in the market place, as individuals and businesses take stock and assess the macro-economic outlook. Our balance between franchising, sales and lettings and geographical mix allows us, as these results have demonstrated, to mitigate against this risk.
Ed Jones
Chief Financial Officer
6 September 2018
Consolidated Statement of Comprehensive Income
For the six months ended 30 June 2018
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
2018 2017 2017
GBP'000s GBP'000s GBP'000s
Revenue 6,699 6,688 14,169
Ongoing administrative expenses (5,845) (5,888) (11,938)
-------------- --------------
Operating profit before depreciation,
amortisation, costs of business
combinations and share-based
payments 854 800 2,231
Depreciation and adjustments
on disposal (57) (63) (137)
Amortisation and adjustments
on disposal (409) (349) (731)
Business combination acquisition
expenses (2) (49) (50)
Share-based payment expense (33) (63) (118)
-------------- -------------- --------------
Operating profit 353 276 1,195
Finance income 8 - 18
Finance costs (98) (85) (185)
Profit before taxation 263 191 1,028
Taxation (56) (34) (133)
Profit for the period 207 157 895
-------------- -------------- --------------
Other comprehensive income - - -
Total comprehensive income
for the period attributable
to equity owners of the parent 207 157 895
Basic earnings per share 4 0.65p 0.52p 2.89p
Diluted earnings per share 4 0.63p 0.50p 2.77p
Consolidated Statement of Financial Position
As at 30 June 2018
Notes 30 June 2018 30 June 31 December
2017 2017
GBP'000s GBP'000s GBP'000s
ASSETS
Non-current assets
Intangible assets 3 11,195 11,075 11,174
Property, plant and equipment 305 383 344
Investments 50 1 1
Deferred tax assets 124 62 87
------------------- ---------
11,674 11,521 11,606
------------------- --------- ------------
Current assets
Trade and other receivables 1,840 1,687 1,645
Cash and cash equivalents 1,117 886 1,582
------------------- --------- ------------
2,957 2,573 3,227
------------------- --------- ------------
Total assets 14,631 14,094 14,833
------------------- --------- ------------
LIABILITIES
Current liabilities
Borrowings 80 373 77
Finance lease liabilities 20 28 19
Current tax liabilities 250 134 163
Trade and other payables 2,003 2,000 2,291
---------
2,353 2,535 2,550
------------------- --------- ------------
Non-current liabilities
Borrowings 4,034 3,560 3,783
Obligations under finance
leases 52 72 62
Other payables 19 43 19
---------
4,105 3,675 3,684
------------------- --------- ------------
Provisions for liabilities
Provisions 60 50 55
Deferred tax liabilities 720 849 768
------------------- --------- ------------
780 899 823
------------------- --------- ------------
Total liabilities 7,238 7,109 7,237
------------------- --------- ------------
Net assets 7,393 6,985 7,596
------------------- --------- ------------
EQUITY
Share capital 1,273 1,268 1,272
Share premium 4,107 4,068 4,105
Merger reserve 899 899 899
Retained earnings 1,114 750 1,320
Total equity 7,393 6,985 7,596
------------------- --------- ------------
Consolidated Statement of Changes in Equity
For the six months ended 30 June 2018
Share Share Merger Retained Total equity
capital premium reserve earnings attributable
to owners
of the parent
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
At 1 January 2017 1,145 2,633 899 971 5,648
Profit and total comprehensive income - - - 157 157
Dividends paid - - - (412) (412)
Credit to equity for equity settled share-based
payments - - - 63 63
Issue of share capital 123 1,432 - - 1,555
Deferred tax on share-based payment
transactions - - - (26) (26)
Exercise of share options - 3 - (3) -
At 30 June 2017 1,268 4,068 899 750 6,985
--------- --------- --------- ---------- ---------------
Profit and total comprehensive income - - - 738 738
Dividends paid - - - (222) (222)
Credit to equity for equity settled share-based
payments - - - 55 55
Issue of share capital 4 112 - - 116
Costs of raising equity - (76) - - (76)
Exercise of share options - 1 - (1) -
At 31 December 2017 1,272 4,105 899 1,320 7,596
--------- --------- --------- ---------- ---------------
Profit and total comprehensive income - - - 207 207
Dividends paid - - - (477) (477)
Credit to equity for equity settled share-based
payments - - - 33 33
Issue of share capital 1 2 - - 3
Deferred tax on share-based payment
transactions - - - 31 31
At 30 June 2018 1,273 4,107 899 1,114 7,393
--------- --------- --------- ---------- ---------------
Consolidated Statement of Cashflows
For the six months ended 30 June 2018
6 months Year ended
ended 6 months 30 December
30 June ended 2017
2018 30 June 2017
GBP000's GBP000's GBP000's
Cash flow from operating activities
Operating profit 353 276 1,195
Adjustment for:
Depreciation of property, plant and
equipment 57 71 137
Amortisation of intangible assets 391 350 755
(Gain) on disposal of property, plant - (1) -
and equipment
Loss/(profit) on disposal of intangible
assets 18 (8) (24)
Share options fair value expense 33 63 118
Expensed/(released) element of provisions 5 (17) (16)
Share exchange transactions (50) - -
Costs of acquisitions 3 49 50
Changes in working capital:
Increase in trade and other receivables (195) (235) (193)
Decrease in trade and other payables (287) (374) (64)
--------- -------------- -------------------
Cash generated from operations 328 174 1,958
Interest paid (83) (83) (147)
Income tax paid (23) (68) (246)
--------- -------------- -------------------
Net cash from operating activities 222 23 1,565
--------- -------------- -------------------
Cash flow from investing activities
Capital expenditure (tangible and
intangible) (747) (311) (920)
Proceeds from sale of tangible and
intangible assets 297 20 114
Business combinations, net of cash
acquired - (2,459) (2,460)
Repayments for deferred consideration - (11) (52)
Interest received 8 - 18
Net cash used in investing activities (442) (2,761) (3,300)
--------- -------------- -------------------
Cash flow from financing activities
Dividends paid to shareholders (477) (412) (634)
Repayment of borrowings (325) (45) (90)
Issue of borrowings 564 1,617 1,851
Issue of share capital 2 1,305 1,345
Repayments for deferred consideration
debentures - - (295)
Repayment of capital element of finance
lease contracts (9) (28) (47)
Net cash (used in)/ from investing
activities (245) 2,437 2,130
--------- -------------- -------------------
(Decrease) in cash and cash equivalents (465) (301) 395
Net cash and cash equivalents at
beginning of the period 1,582 1,187 1,187
--------- -------------- -------------------
Net cash and cash equivalents at
end of period 1,117 886 1,582
--------- -------------- -------------------
Notes to the Financial Statements
For the six months ended 30 June 2018
1. General information
Hunters Property Plc is a Company incorporated in the United Kingdom. The registered address of the Company is Apollo House, Eboracum Way, York, YO31 7RE. The consolidated financial statements (or "financial statements") incorporate the financial statements of the Company and entities (its subsidiaries) controlled by the Company (collectively comprising the "Group").
The principal activity of the Group is the provision of property services to consumers and businesses which include sales, lettings, franchising and related services.
2. Accounting policies
2.1. Basis of preparation
The financial information set out in these interim consolidated financial statements for the six months ended 30 June 2018 is unaudited. The financial information presented are not statutory accounts prepared in accordance with the Companies Act 2006, and are prepared only to comply with AIM requirements for interim reporting. Statutory accounts for the year ended 31 December 2017 on which the auditors gave an audit report which was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies. The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union.
2.2. Basis of consolidation
The Group financial information consolidates those of the Parent Company and the subsidiaries that the Parent has control of. Control is established when the Parent is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary.
Where a subsidiary is acquired/disposed of during the period, the consolidated profits or losses are recognised from/until the effective date of the acquisition/disposal.
All inter-company balances and transactions between group companies have been eliminated on consolidation.
Where necessary, adjustments are made to the financial information of subsidiaries to bring the accounting policies used into line with those used by the Group.
2.3. Going concern
When assessing going concern the Directors have looked at the period of 12 months from the date of approval of the interim financial statements. The Directors are satisfied that the Group has sufficient resources to continue in operation and accordingly these interim financial statements have been prepared on a going concern basis.
3. Intangible Fixed Assets
Goodwill Software FDG's Brands Customer
& Rebrands Lists Total
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Cost
At 1 January 2018 4,661 758 2,563 637 4,487 13,106
Additions - separately
acquired - 59 660 - 9 728
Disposals - - (412) - - (412)
----------------- --------- ---------
At 30 June 2018 4,661 817 2,811 637 4,496 13,422
--------- --------- ------------ ----------------- --------- ---------
Amortisations and Impairment
At 1 January 2018 35 215 446 206 1,030 1,932
Amortisation charged
for the year - 60 93 32 206 391
Amortisation on disposal - - (96) - - (96)
--------- --------- ------------ ----------------- --------- ---------
At 30 June 2018 35 275 443 238 1,236 2,227
--------- --------- ------------ ----------------- --------- ---------
Carrying amount
At 30 June 2018 4,626 542 2,368 399 3,260 11,195
--------- --------- ------------ ----------------- --------- ---------
At 31 December 2017 4,626 543 2,117 431 3,457 11,174
--------- --------- ------------ ----------------- --------- ---------
Franchise Development Grants ("FDG's") and rebrand costs are externally incurred expenses at the inception of certain contracts with franchisees in order to assist with the transition to using the Hunters brand name. The amounts invested are amortised over the minimum life of the underlying franchise contract, typically 10 to 15 years.
4. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings 30 June 2018 30 June 2017
GBP'000s GBP'000s
Earnings for the purpose of basic earnings
per share being net profit attributable
to owners of the parent 207 157
Effects of dilutive potential ordinary - -
shares
Earnings for the purposes of diluted earnings
per share 207 157
------------- -------------
Number of shares 30 June 2018 30 June 2017
GBP GBP
Weighted average number of ordinary shares
for the purposes of basic earnings per
share 31,818,043 30,241,422
Effects of dilutive potential ordinary
shares 1,016,037 1,076,661
Weighted average number of ordinary shares
for the purposes of diluted earnings per
share 32,834,080 31,318,083
------------- -------------
Earnings per share
Pence per weighted average shares 0.65p 0.52p
------ ------
Pence per weighted average diluted shares 0.63p 0.50p
------ ------
The Directors use adjusted earnings before time-value interest, investment revenue, amortisation, and costs of acquisition ("Adjusted Earnings") as a measure of ongoing profitability and performance. The calculated Adjusted Earnings for the current period of accounts is as follows:
Adjusted Earnings per Share 30 June 2018 30 June 2017
GBP'000s GBP'000s
Profit after taxation 207 157
Adjusted for:
Time-value interest costs 3 13
Investment revenues (8) -
Amortisation 409 349
Costs of acquisition 2 49
Share-based payment expense 33 63
Adjusted Earnings 646 631
------------- -------------
Adjusted Earnings per share
Pence per weighted average shares 2.03p 2.09p
------ ------
Pence per weighted average diluted shares 1.97p 2.02p
------ ------
Copies of the Interim Report are available from the Company Secretary at Apollo House, Eboracum Way, York, YO31 7RE and on the Company's website www.hunters.com.
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.
END
IR BLGDCRXGBGIU
(END) Dow Jones Newswires
September 06, 2018 02:00 ET (06:00 GMT)
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