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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Judges Scientific Plc | LSE:JDG | London | Ordinary Share | GB0032398678 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 250.00 | 2.29% | 11,150.00 | 10,850.00 | 11,250.00 | 11,050.00 | 10,975.00 | 10,975.00 | 1,427 | 16:35:11 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Lab Analytical Instruments | 113.21M | 12.44M | 1.8823 | 58.70 | 730.16M |
From Apr 2019 to Apr 2024
TIDMJDG
RNS Number : 6838M
Judges Scientific PLC
18 September 2019
Hot Features
Premium
18 September 2019
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon publication of this announcement via a regulatory information service ("RIS"), the inside information contained in this document is now considered to be in the public domain.
Judges Scientific plc
("Judges Scientific", "the Company", or "the Group")
Interim results for the six months ended 30 June 2019
Key financials **
-- Revenues increased 9% to a record GBP40.2 million (H1 2018: GBP37.0 million);
-- Adjusted*pre-tax profit increased 27% to GBP8.4 million (H1 2018: GBP6.6 million);
- Statutory pre-tax profit increased to GBP6.9 million (H1 2018: GBP4.2 million);
-- Adjusted* basic earnings per share increased 30% to 108.7p (H1 2018: 83.4p);
- Statutory basic earnings per share increased to 90.1p (H1 2018: 53.3p);
-- Interim dividend of 15.0p (H1 2018: 12.0p), an increase of 25%; covered 7 times by adjusted earnings;
-- Order intake increased 4% compared with H1 2018;
-- Order book at 13.2 weeks (H1 2018: 15.0 weeks);
-- Cash generated from operations increased to GBP8.5 million (H1 2018: GBP6.3 million);
-- Adjusted* net cash increased to GBP7.4 million as at 30 June 2019 (31 December 2018: GBP0.9 million);
- Statutory net cash increased to GBP7.2 million as at 30 June 2019 (31 December 2018: GBP0.7 million);
-- Cash balances increased to GBP20.8 million as at 30 June 2019 (31 December 2018: GBP15.7 million).
Outlook
-- Adjusted profit before tax and earnings per share anticipated to be ahead of FY 2019 expectations***.
* Adjusted earnings figures are stated before adjusting items relating to hedging of risks materialising after the end of the period, amortisation of acquired intangible assets, share based payments and acquisition-related costs. Adjusted net cash notionally includes acquisition-related payments which had yet to be settled at the balance sheet date and excludes subordinated debt owed by subsidiaries to non-controlling shareholders.
** In the absence of any material acquisition since 1 January 2018, this statement shows no distinction between total and organic performance.
*** Judges Scientific's compiled analyst forecast range for adjusted profit before tax (year to 31 December 2019): GBP14.8m to GBP15.1m, with an average consensus of GBP15.0m. The forecast range for Adjusted earnings per share: 184.7p to 190.5p, with an average consensus of 188.4p.
Alex Hambro, Chairman of Judges Scientific, commented:
"The delivery of record revenue, adjusted profit before tax, earnings per share, cash generation and dividends for the first half is testament to the Group's pursuit of operational excellence. Orders to date are in line with our expectations, despite a subdued second quarter. The strong first half financial performance and healthy order book give the Board confidence that full year adjusted profit before tax and EPS will exceed current consensus market expectations."
For further information please contact:
Judges Scientific David Cicurel, CEO Tel: +44 (0) 203 829 6970 Brad Ormsby, Group FD Shore Capital (Nominated Adviser & Joint Broker) Stephane Auton Tel: +44 (0) 20 7408 4090 Edward Mansfield Sarah Mather Liberum (Joint Broker) Tel: +44 (0) 20 3100 2222 Bidhi Bhoma Euan Brown Alma (Financial Public Relations) Rebecca Sanders-Hewett Tel: +44 (0) 20 3405 0205 Sam Modlin
Chairman's Statement
It is gratifying to be able to report record figures across revenues, adjusted profit before tax, adjusted earnings per share and dividends for the first half of 2019, maintaining the positive financial performance experienced since the second half of 2016.
The Group's results for the six-month period to 30 June 2019 omits any distinction between "total" and "organic" as no material acquisitions were completed in the period.
Revenues
Group revenues for the period increased 9% to a record GBP40.2 million (H1 2018: GBP37.0 million). Sales were particularly strong in North America (up 33%). After the pause observed in FY18, China/Hong Kong showed some improvement (up 5%) but the Rest of the World receded 8%. The UK was stable and the Rest of Europe up 2%. For followers of the status of Brexit and of the US/China trade tensions, the Rest of Europe (largely the EU27) represented 29% of the Group's revenue and North America plus China/HK represented 42%.
Sales were boosted by efforts throughout the Group to further pursue operational excellence; in particular, management strived to reduce customer delivery lead times. As a consequence, sales in the first half accelerated ahead of order intake, resulting in a small reduction of the order book.
Order intake
As previously announced, order intake in the first half was consistent with the Group's expectations for the year, showing a progression of 4.2% on the same period last year. Due to the aforementioned acceleration of sales, the order book stood at a healthy 13.2 weeks of sales at 30 June 2019 against 14.4 weeks at the beginning of 2019 and 15.0 weeks at 30 June 2018.
Order intake was weak in the UK (22% below H1 2018) and solid in the Rest of Europe (5% above H1 2018), with double digit increases in the other major trading zones. North America was up 10%, China/HK up 13% and the Rest of the World up 13% versus H1 2018. This illustrates both the time gap between receipt of orders and their subsequent delivery, and the volatility of orders by geography over short periods.
Profits
The increased profitability was driven by revenue growth, the continuing favourable foreign exchange environment and the aforementioned efforts to optimise all aspects of our businesses. Contribution to EBITA and central costs advanced by 22% which led to a 27% increase in adjusted pre-tax profit to GBP8.4 million (H1 2018: GBP6.6 million). Return on Total Invested Capital ("ROTIC") advanced to 31.0% for the trailing 12 months ended 30 June 2019 (30 June 2018: 24.2%).
The 1.2 week order book compression contributed around half of the increased performance, which is not of a recurring nature.
Adjusted basic earnings per share progressed 30% to 108.7p (H1 2018: 83.4p) and adjusted diluted earnings per share grew similarly from 82.1p to 107.0p.
Your Directors continue to show adjusted figures, prepared consistently with past reports, in order to communicate to shareholders what is, in the Directors' opinion, the true operating performance of the Group. The total adjustments of GBP1.5 million (H1 2018: GBP2.4 million) consist primarily of a GBP1.4 million charge for amortisation of acquired intangible assets arising through acquisition. The adjusting items reduce profit before tax from GBP8.4 million to GBP6.9 million (H1 2018: GBP4.2 million) and earnings per share to 90.1p basic and 88.6p diluted (H1 2018: 53.3p basic and 52.4p diluted).
Cashflow and net debt
Cash flow during the first half of 2019 mirrored the trading accomplishment, with cash from operations of GBP8.5 million (H1 2018: GBP6.3 million) representing 98% of adjusted operating profit (H1 2018: 92%). The interim balance sheet includes cash balances of GBP20.8 million and adjusted net cash of GBP7.4 million, from GBP0.9 million at the beginning of 2019.
Dividend
In accordance with the Company's dividend policy and in view of the positive performance in the period, the Board is declaring an interim dividend of 15.0p (2018: 12.0p), which will be paid on Friday 1 November 2019 to shareholders on the register on Friday 4 October 2019. The shares will go ex-dividend on Thursday 3 October 2019. The interim dividend is covered 7 times by adjusted earnings (2018: 7 times).
Outlook
As noted in our trading update, the Group's order intake, whilst in line with expectations overall, experienced a small contraction in the second quarter. Since the period end order intake has recovered to a satisfactory level, maintaining a healthy order book. We continue to remain cautious about the ongoing macro-economic and political uncertainty and its potential impact on the future performance of the Group.
We do not expect a second half weighting similar to recent years, mostly in view of the aforementioned compression of the order book in the first half. Notwithstanding this - and concerns relating to the economic outlook - the strong financial performance in the first half and the healthy order book give the Board confidence that adjusted profit before tax and EPS will exceed current consensus market expectations for the year as a whole.
The Hon. Alexander Hambro
Chairman
17 September 2019
Condensed consolidated interim statement of comprehensive income
Six months Six months
to to Year to
Adjusting 30 June 30 June 31 December
Adjusted items 2019 2018 2018
Note GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------------- ----- --------- --------- ---------- ---------- ------------
Revenue 3 40,169 - 40,169 36,962 77,868
Operating costs (31,539) - (31,539) (30,102) (63,137)
----------------------------------- ----- --------- --------- ---------- ---------- ------------
Adjusted operating profit 3 8,630 - 8,630 6,860 14,731
Adjusting items 4 - (1,480) (1,480) (2,350) (4,045)
----------------------------------- ----- --------- --------- ---------- ---------- ------------
Operating profit/(loss) 8,630 (1,480) 7,150 4,510 10,686
Interest income 49 - 49 12 41
Interest expense 4 (257) (25) (282) (290) (539)
----------------------------------- ----- --------- --------- ---------- ---------- ------------
Profit/(loss) before tax 8,422 (1,505) 6,917 4,232 10,188
Taxation (charge)/credit (1,316) 265 (1,051) (556) (1,053)
----------------------------------- ----- --------- --------- ---------- ---------- ------------
Profit/(loss) for the period 7,106 (1,240) 5,866 3,676 9,135
----------------------------------- ----- --------- --------- ---------- ---------- ------------
Attributable to:
Owners of the parent 6,750 (1,158) 5,592 3,283 8,495
Non-controlling interests 356 (82) 274 393 640
----------------------------------- ----- --------- --------- ---------- ---------- ------------
Profit/(loss) for the period 7,106 (1,240) 5,866 3,676 9,135
----------------------------------- ----- --------- --------- ---------- ---------- ------------
Other comprehensive income
Items that will not be reclassified subsequently
to profit or loss
Retirement benefits actuarial
(loss)/gain (250) 128 168
Items that may be reclassified subsequently
to profit or loss
Exchange differences on translation of
foreign subsidiaries 16 20 66
----------------------------------------------------- --------- ---------- ---------- ------------
Other comprehensive (expense)/income
for the period, net of tax (234) 148 234
----------------------------------------------------- --------- ---------- ---------- ------------
Total comprehensive income for the period 5,632 3,824 9,369
----------------------------------------------------- --------- ---------- ---------- ------------
Attributable to:
Owners of the parent 5,358 3,431 8,729
Non-controlling interests 274 393 640
----------------------------------- ----- --------- --------- ---------- ---------- ------------
Pence Pence Pence
------------------------------ ----- ----- -----
Earnings per share - adjusted
Basic 5108.7 83.4 183.4
Diluted 5107.0 82.1 180.6
------------------------------ ----- ----- -----
Earnings per share - total
Basic 5 90.1 53.3 137.5
Diluted 5 88.6 52.4 135.4
------------------------------ ----- ----- -----
Condensed consolidated interim balance sheet
30 June 30 June 31 December
2019 2018 2018
Note GBP000 GBP000 GBP000
------------------------------------- ---- -------- -------- -----------
ASSETS
Non-current assets
Goodwill 14,650 14,650 14,650
Other intangible assets 6 3,989 6,861 5,373
Property, plant and equipment 5,460 5,534 5,524
Right-of-use leased assets 2 2,610 - -
Deferred tax assets 775 713 719
------------------------------------- ---- -------- -------- -----------
27,484 27,758 26,266
------------------------------------- ---- -------- -------- -----------
Current assets
Inventories 11,926 11,424 10,502
Trade and other receivables 11,610 13,708 13,231
Cash and cash equivalents 20,780 14,365 15,727
------------------------------------- ---- -------- -------- -----------
44,316 39,497 39,460
------------------------------------- ---- -------- -------- -----------
Total assets 71,800 67,255 65,726
------------------------------------- ---- -------- -------- -----------
LIABILITIES
Current liabilities
Trade and other payables (12,988) (13,961) (13,977)
Borrowings (3,047) (3,081) (3,058)
Right-of-use lease liabilities 2 (650) - -
Current tax liabilities (2,572) (3,680) (2,204)
------------------------------------- ---- -------- -------- -----------
(19,257) (20,722) (19,239)
------------------------------------- ---- -------- -------- -----------
Non-current liabilities
Borrowings (10,541) (13,642) (11,968)
Right-of-use lease liabilities 2 (1,900) - -
Deferred tax liabilities (1,215) (1,661) (1,477)
Retirement benefit obligations 10 (2,162) (2,094) (1,836)
------------------------------------- ---- -------- -------- -----------
(15,818) (17,397) (15,281)
------------------------------------- ---- -------- -------- -----------
Total liabilities (35,075) (38,119) (34,520)
------------------------------------- ---- -------- -------- -----------
Net assets 36,725 29,136 31,206
------------------------------------- ---- -------- -------- -----------
EQUITY
Share capital 7 311 309 310
Share premium 15,359 15,000 15,164
Other reserves 2,137 2,075 2,121
Retained earnings 18,295 10,282 13,049
------------------------------------- ---- -------- -------- -----------
Equity attributable to owners of the
parent 36,102 27,666 30,644
Non-controlling interests 623 1,470 562
------------------------------------- ---- -------- -------- -----------
Total equity 36,725 29,136 31,206
------------------------------------- ---- -------- -------- -----------
Condensed consolidated interim statement of changes in equity
Total
attributable Non-
Share Share Other Retained to owners controlling Total
capital premium reserves earnings of parent interests equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
At 1 January 2019 310 15,164 2,121 13,049 30,644 562 31,206
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Adjustment arising
from change in non-controlling
interest - - - (204) (204) (213) (417)
Issue of share capital 1 195 - - 196 - 196
Share-based payments - - - 108 108 - 108
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Transactions with
owners 1 195 - (96) 100 (213) (113)
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Profit for the period - - - 5,592 5,592 274 5,866
Retirement benefit
actuarial loss - - - (250) (250) - (250)
Foreign exchange differences - - 16 - 16 - 16
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Total comprehensive
income for the period - - 16 5,342 5,358 274 5,632
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
At 30 June 2019 311 15,359 2,137 18,295 36,102 623 36,725
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Total
attributable Non-
Share Share Other Retained to owners controlling Total
capital premium reserves earnings of parent interests equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------- -------- -------- --------- --------- ------------- ------------ -------
At 1 January 2018 307 14,529 2,055 6,688 23,579 1,077 24,656
----------------------------- -------- -------- --------- --------- ------------- ------------ -------
Issue of share capital 2 471 - - 473 - 473
Share-based payments - - - 183 183 - 183
----------------------------- -------- -------- --------- --------- ------------- ------------ -------
Transactions with
owners 2 471 - 183 656 - 656
----------------------------- -------- -------- --------- --------- ------------- ------------ -------
Profit for the period - - - 3,283 3,283 393 3,676
Retirement benefit
actuarial gain - - - 128 128 - 128
Foreign exchange differences - - 20 - 20 - 20
----------------------------- -------- -------- --------- --------- ------------- ------------ -------
Total comprehensive
income for the period - - 20 3,411 3,431 393 3,824
----------------------------- -------- -------- --------- --------- ------------- ------------ -------
At 30 June 2018 309 15,000 2,075 10,282 27,666 1,470 29,136
----------------------------- -------- -------- --------- --------- ------------- ------------ -------
Total
attributable Non-
Share Share Other Retained to owners controlling Total
capital premium reserves earnings of parent interests equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
At 1 January 2018 307 14,529 2,055 6,688 23,579 1,077 24,656
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Dividends - - - (2,103) (2,103) (162) (2,265)
Adjustment arising
from change in non-controlling
interest - - - (518) (518) (993) (1,511)
Issue of share capital 3 635 - - 638 - 638
Share-based payments - - - 319 319 - 319
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Transactions with
owners 3 635 - (2,302) (1,664) (1,155) (2,819)
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Profit for the year - - - 8,495 8,495 640 9,135
Retirement benefit
actuarial gain - - - 168 168 - 168
Foreign exchange
differences - - 66 - 66 - 66
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Total comprehensive
income for the year - - 66 8,663 8,729 640 9,369
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
At 31 December 2018 310 15,164 2,121 13,049 30,644 562 31,206
-------------------------------- -------- -------- --------- --------- ------------- ------------ -------
Condensed consolidated interim cashflow statement
Six months Six months Year
to to to
30 June 30 June 31 December
2019 2018 2018
GBP000 GBP000 GBP000
--------------------------------------------------- ---------- ---------- ------------
Cashflows from operating activities
Profit after tax 5,866 3,676 9,135
Adjustments for:
Financial instruments measured at fair value:
Hedging contracts (12) 22 56
Share-based payments 108 183 319
Depreciation of property, plant and equipment 367 373 746
Depreciation of right-of-use leased assets 395 - -
Amortisation of intangible assets 1,384 2,145 3,633
(Profit)/loss on disposal of property, plant
and equipment (28) - 18
Foreign exchange gains on foreign currency
loans - (18) (18)
Interest income (49) (12) (41)
Interest expense 257 263 485
Retirement benefit obligation net interest
cost 25 27 54
Contributions to defined benefit plans - - (236)
Tax recognised in income statement 1,051 556 1,053
Increase in inventories (1,424) (1,044) (122)
Decrease/(increase) in trade and other receivables 1,486 (1,881) (1,404)
(Decrease)/increase in trade and other payables (937) 1,989 2,000
--------------------------------------------------- ---------- ---------- ------------
Cash generated from operations 8,489 6,279 15,678
Finance costs paid (256) (266) (525)
Tax paid (947) (115) (2,351)
--------------------------------------------------- ---------- ---------- ------------
Net cash from operating activities 7,286 5,898 12,802
--------------------------------------------------- ---------- ---------- ------------
Cashflows from investing activities
--------------------------------------------------- ---------- ---------- ------------
Paid on acquisition of new subsidiaries - (599) (599)
Gross cash inherited on acquisition - - -
--------------------------------------------------- ---------- ---------- ------------
Acquisition of subsidiaries, net of cash acquired - (599) (599)
Purchase of property, plant and equipment (314) (557) (955)
Proceeds from the sale of property, plant
and equipment 28 - 18
Interest received 49 12 41
--------------------------------------------------- ---------- ---------- ------------
Net cash used in investing activities (237) (1,144) (1,495)
--------------------------------------------------- ---------- ---------- ------------
Cashflows from financing activities
Proceeds from issue of share capital 196 473 638
Repayments of borrowings (1,440) (1,518) (3,183)
Repayments of right-of-use lease liabilities (362) - -
Equity dividends paid - - (2,103)
Share repurchase - non-controlling interest
in subsidiary (417) - (1,511)
Dividends paid - non-controlling interest
in subsidiary - - (162)
Net cash used in financing activities (2,023) (1,045) (6,321)
--------------------------------------------------- ---------- ---------- ------------
Net change in cash and cash equivalents 5,026 3,709 4,986
Cash and cash equivalents at start of period 15,727 10,681 10,681 Exchange movements 27 (25) 60 --------------------------------------------------- ---------- ---------- ------------ Cash and cash equivalents at end of period 20,780 14,365 15,727 --------------------------------------------------- ---------- ---------- ------------
Notes to the interim report
1. General information and basis of preparation
The Judges Scientific plc Group's principal activities comprise the design, manufacture and sale of scientific instruments. The subsidiaries are grouped into two segments: Materials Sciences and Vacuum.
The financial information set out in this Interim Report for the six months ended 30 June 2019 and the comparative figures for the six months ended 30 June 2018 are unaudited. The Interim Report has been prepared in accordance with IAS 34 'Interim Financial Reporting'. The Interim Report does not contain all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2018, which have been prepared in accordance with IFRS as adopted by the European Union.
The financial information for the year ended 31 December 2018 set out in this Interim Report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2018 have been filed with the Registrar of Companies. The Auditor's Report in respect of those financial statements was unqualified and did not contain statements under section 498 of the Companies Act 2006.
Judges Scientific plc is the Group's ultimate parent company. The Company is a public limited company incorporated and domiciled in the United Kingdom. Its registered office and principal place of business is 52c Borough High Street, London SE1 1XN and the Company's shares are quoted on the Alternative Investment Market. The Interim Report is presented in Sterling, which is the functional currency of the parent company. The Interim Report has been approved for issue by the Board of Directors on 17 September 2019.
2. Significant accounting policies
The Interim Report has been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 December 2018, except for the taxation policy where, for the purposes of the interim results, the tax charge on adjusted business performance is calculated by reference to the estimated effective rate for the full year.
IFRS 16 'Leases' (effective date 1 January 2019)
The Group has adopted IFRS 16 'Leases' as of 1 January 2019. The modified retrospective approach was applied on transition. Prior period comparatives have not been restated, and there was no adjustment to equity on transition.
IFRS 16 requires the capitalisation of operating leases, such as the Group's building and vehicle leases, as right-of-use leased assets with an offsetting financial liability. The Group has elected to measure the right-of-use leased assets at an amount equal to the lease liabilities adjusted for any prepaid or accrued lease payments that existed at the date of transition. Right-of-use assets and liabilities are presented separately in the Consolidated Balance Sheet.
The weighted average incremental borrowing rate used to measure lease liabilities is 4.25%
In the Consolidated Statement of Comprehensive Income the previous rental charge has been replaced with a combination of depreciation from the right-of-use leased assets and an interest charge from the lease liabilities. The effect for the period ended 30 June 2019 is as follows:
Six months
to
30 June
2019
GBP000
-------------------------------------------------------- ----------
Rental lease charges under previous accounting standard 408
Depreciation of right-of-use leased assets (395)
-------------------------------------------------------- ----------
Increase in operating profit due to IFRS 16 13
Interest charge from right-of-use liabilities (45)
-------------------------------------------------------- ----------
Decrease in profit before tax due to IFRS 16 (32)
Decrease in earnings per share due to IFRS 16 (0.42p)
-------------------------------------------------------- ----------
In the year of adoption operating profit increases, but profit before tax decreases, and earnings per share is reduced. Assuming no further changes to the Group's leases, the increase in operating profit will endure, however in future years the interest charge will reduce as the discount unwinds.
The following is a reconciliation of total operating lease commitments at 31 December 2018 to the right-of-use lease liabilities and assets recognised at 1 January 2019:
1 January
2019
GBP000
----------------------------------------------------------- ---------------------
Total operating lease commitments disclosed at 31 December
2018 3,363
Adjustments to commitments disclosures (155)
----------------------------------------------------------- ---------------------
Right-of-use lease liabilities before discounting 3,208
Discounted using incremental borrowing rate (296)
----------------------------------------------------------- ---------------------
Right-of-use lease liabilities recognised at 1 January
2019 2,912
Adjustments for prepaid rent at 31 December 2018 135
Adjustments for accrued rent at 31 December 2018 (42)
----------------------------------------------------------- ---------------------
Right-of-use leased assets recognised at 1 January
2019 3,005
----------------------------------------------------------- ---------------------
Changes in the right-of-use leased assets for the six months ended 30 June 2019 were as follows:
Six months
to
30 June
2019
GBP000
--------------------------------------------------- ----------
Right-of-use leased assets recognised at 1 January
2019 3,005
Depreciation (395)
--------------------------------------------------- ----------
Right-of-use leased assets as at 30 June 2019 2,610
--------------------------------------------------- ----------
Changes in the right-of-use lease liabilities for the six months ended 30 June 2019 were as follows:
Six months
to
30 June
2019
GBP000
------------------------------------------------------- ----------
Right-of-use lease liabilities recognised at 1 January
2019 2,912
Interest accrued 45
Interest paid (45)
Repayments of right-of-use lease liabilities (362)
------------------------------------------------------- ----------
Right-of-use lease liabilities as at 30 June 2019 2,550
------------------------------------------------------- ----------
Split between:
Current 650
Non-current 1,900
------------------------------------------------------- ----------
3. Segmental analysis
Materials Unallocated
For the period ended 30 June Sciences Vacuum items Total
2019 Note GBP000 GBP000 GBP000 GBP000
----------------------------- ---- --------- -------- ----------- --------
Revenue 15,929 24,240 - 40,169
Operating costs (12,702) (17,566) (1,271) (31,539)
----------------------------- ---- --------- -------- ----------- --------
Adjusted operating profit 3,227 6,674 (1,271) 8,630
Adjusting items 4 (1,480)
----------------------------- ---- --------- -------- ----------- --------
Operating profit 7,150
Net interest expense (233)
----------------------------- ---- --------- -------- ----------- --------
Profit before tax 6,917
Income tax charge (1,051)
----------------------------- ---- --------- -------- ----------- --------
Profit for the period 5,866
----------------------------- ---- --------- -------- ----------- --------
Materials Unallocated
For the period ended 30 June Sciences Vacuum items Total
2018 Note GBP000 GBP000 GBP000 GBP000
----------------------------- ---- --------- -------- ----------- --------
Revenue 16,295 20,667 - 36,962
Operating costs (12,988) (15,991) (1,123) (30,102)
----------------------------- ---- --------- -------- ----------- --------
Adjusted operating profit 3,307 4,676 (1,123) 6,860
Adjusting items 4 (2,350)
----------------------------- ---- --------- -------- ----------- --------
Operating profit 4,510
Net interest expense (278)
----------------------------- ---- --------- -------- ----------- --------
Profit before tax 4,232
Income tax charge (556)
----------------------------- ---- --------- -------- ----------- --------
Profit for the period 3,676
----------------------------- ---- --------- -------- ----------- --------
Materials Unallocated
For the year ended 31 December Sciences Vacuum items Total
2018 Note GBP000 GBP000 GBP000 GBP000
------------------------------- ---- --------- -------- ----------- --------
Revenue 35,058 42,810 - 77,868
Operating costs (27,018) (33,445) (2,674) (63,137)
------------------------------- ---- --------- -------- ----------- --------
Adjusted operating profit 8,040 9,365 (2,674) 14,731
Adjusting items 4 (4,045)
------------------------------- ---- --------- -------- ----------- --------
Operating profit 10,686
Net interest expense (498)
------------------------------- ---- --------- -------- ----------- --------
Profit before tax 10,188
Income tax charge (1,053)
------------------------------- ---- --------- -------- ----------- --------
Profit for the year 9,135
------------------------------- ---- --------- -------- ----------- --------
Unallocated items relate to the Group's head office costs.
Segment assets and liabilities
Materials Unallocated
Sciences Vacuum items Total
At 30 June 2019 GBP000 GBP000 GBP000 GBP000
------------------------------------ --------- -------- ----------- --------
Assets 16,694 26,790 28,316 71,800
Liabilities (8,077) (13,366) (13,632) (35,075)
------------------------------------ --------- -------- ----------- --------
Net assets 8,617 13,424 14,684 36,725
------------------------------------ --------- -------- ----------- --------
Capital expenditure 78 224 12 314
Depreciation of property, plant
and equipment 90 262 15 367
Depreciation of right-of-use leased
assets 186 182 27 395
Amortisation 651 733 - 1,384
------------------------------------ --------- -------- ----------- --------
Materials Unallocated
Sciences Vacuum items Total
At 30 June 2018 GBP000 GBP000 GBP000 GBP000
-------------------------------- --------- -------- ----------- --------
Assets 19,445 24,704 23,106 67,255
Liabilities (9,491) (14,826) (13,802) (38,119)
-------------------------------- --------- -------- ----------- --------
Net assets 9,954 9,878 9,304 29,136
-------------------------------- --------- -------- ----------- --------
Capital expenditure 122 435 - 557
Depreciation of property, plant
and equipment 122 233 18 373
Amortisation 775 1,370 - 2,145
-------------------------------- --------- -------- ----------- --------
Materials Unallocated
Sciences Vacuum items Total
At 31 December 2018 GBP000 GBP000 GBP000 GBP000
-------------------------------- --------- -------- ----------- --------
Assets 17,275 24,410 24,041 65,726
Liabilities (7,888) (11,838) (14,794) (34,520)
-------------------------------- --------- -------- ----------- --------
Net assets 9,387 12,572 9,247 31,206
-------------------------------- --------- -------- ----------- --------
Capital expenditure 185 770 - 955
Depreciation of property, plant
and equipment 231 481 34 746
Amortisation 1,519 2,114 - 3,633
-------------------------------- --------- -------- ----------- --------
Unallocated items are borrowings, intangible assets and goodwill arising on acquisition, deferred tax, defined benefit obligations and parent company net assets.
Six months Six months
to to Year to
30 June 30 June 31 December
2019 2018 2018
Geographic analysis GBP000 GBP000 GBP000
-------------------- ---------- ---------- ------------
UK (domicile) 4,539 4,541 10,729
Rest of Europe 11,780 11,499 23,156
North America 13,294 9,972 20,884
China/Hong Kong 3,648 3,467 7,716
Rest of the world 6,908 7,483 15,383
-------------------- ---------- ---------- ------------
Revenue 40,169 36,962 77,868
-------------------- ---------- ---------- ------------
4. Adjusting items
Six months Six months
to to Year to
30 June 30 June 31 December
2019 2018 2018
GBP000 GBP000 GBP000
-------------------------------------------- ---------- ---------- ------------
Amortisation of intangible assets 1,384 2,145 3,633
Financial instruments measured at fair
value: Hedging contracts (12) 22 56
Share-based payments 108 183 319
Acquisition costs - - 37
-------------------------------------------- ---------- ---------- ------------
Total adjusting items within operating
profit 1,480 2,350 4,045
Retirement benefits obligation net interest
cost 25 27 54
-------------------------------------------- ---------- ---------- ------------
Total adjusting items 1,505 2,377 4,099
Taxation (265) (435) (1,085)
-------------------------------------------- ---------- ---------- ------------
Total adjusting items net of tax 1,240 1,942 3,014
-------------------------------------------- ---------- ---------- ------------
Attributable to:
Owners of the parent 1,158 1,857 2,834
Non-controlling interests 82 85 180
-------------------------------------------- ---------- ---------- ------------
1,240 1,942 3,014
-------------------------------------------- ---------- ---------- ------------
5. Earnings per share
Six months Six months
to to Year to
30 June 30 June 31 December
2019 2018 2018
Note GBP000 GBP000 GBP000
----------------------------------- ---- ---------- ---------- ------------
Profit for the period attributable
to owners of the parent
Adjusted profit 6,750 5,140 11,329
Adjusting items 4 (1,158) (1,857) (2,834)
----------------------------------- ---- ---------- ---------- ------------
Profit for the period 5,592 3,283 8,495
----------------------------------- ---- ---------- ---------- ------------
Pence Pence Pence
------------------------------ ----- ----- -----
Earnings per share - adjusted
Basic 108.7 83.4 183.4
Diluted 107.0 82.1 180.6
------------------------------- ----- ----- -----
Earnings per share - total
Basic 90.1 53.3 137.5
Diluted 88.6 52.4 135.4
------------------------------- ----- ----- -----
Number Number Number
----------------------------------- --------- --------- ---------
Issued Ordinary shares at start
of the period 76,196,678 6,141,128 6,141,128
Movement in Ordinary shares during
the period 7 24,163 43,050 55,550
----------------------------------- --------- --------- ---------
Issued Ordinary shares at end of
the period 76,220,841 6,184,178 6,196,678
----------------------------------- --------- --------- ---------
Weighted average number of shares
in issue 6,207,925 6,162,943 6,176,315
Dilutive effect of share options 101,158 96,928 96,800
----------------------------------- --------- --------- ---------
Weighted average shares in issue
on a diluted basis 6,309,083 6,259,871 6,273,115
----------------------------------- --------- --------- ---------
Adjusted basic earnings per share is calculated on the adjusted profit, which is presented before any adjusting items, attributable to the Company's shareholders divided by the weighted average number of shares in issue during the period.
Adjusted diluted earnings per share is calculated on the adjusted basic earnings per share, adjusted to allow for the issue of Ordinary shares on the assumed conversion of all dilutive options and any other dilutive potential Ordinary shares. The calculation is based on the treasury method prescribed in IAS 33. This calculates the theoretical number of shares that could be purchased at the average middle market price in the period out of the proceeds of the notional exercise of outstanding options. The difference between this theoretical number and the actual number of shares under option is deemed liable to be issued at nil value and represents the dilution.
Total earnings per share is calculated as above whilst substituting total profit for adjusted profit.
6. Other intangible assets
The following tables show the significant additions to and amortisation of intangible assets:
Carrying Carrying
amount amount
at at
1 January 30 June
2019 Amortisation 2019
GBP000 GBP000 GBP000
------------------------- ---------- ------------ --------
Distribution agreements 310 (110) 200
Research and development 2,458 (552) 1,906
Brand and domain names 2,235 (512) 1,723
Customer relationships 370 (210) 160
------------------------- ---------- ------------ --------
Total 5,373 (1,384) 3,989
------------------------- ---------- ------------ --------
Carrying Carrying
amount amount
at at
1 January 30 June
2018 Amortisation 2018
GBP000 GBP000 GBP000
------------------------- ---------- ------------ --------
Distribution agreements 606 (158) 448
Research and development 3,712 (702) 3,010
Brand and domain names 3,705 (973) 2,732
Customer relationships 983 (312) 671
------------------------- ---------- ------------ --------
Total 9,006 (2,145) 6,861
------------------------- ---------- ------------ --------
Carrying Carrying
amount amount
at at
1 January 31 December
2018 Amortisation 2018
GBP000 GBP000 GBP000
------------------------- ---------- ------------ ------------
Distribution agreements 606 (296) 310
Research and development 3,712 (1,254) 2,458
Brand and domain names 3,705 (1,470) 2,235
Customer relationships 983 (613) 370
------------------------- ---------- ------------ ------------
Total 9,006 (3,633) 5,373
------------------------- ---------- ------------ ------------
7. Share capital
Movements in the Group's Ordinary shares in issue are summarised as follows:
Six months Six months
to to Year to
30 June 30 June 31 December
2019 2018 2018
Ordinary shares of 5p each Number Number Number
--------------------------- ---------- ---------- ------------
Issued and fully paid
Start of the period 6,196,678 6,141,128 6,141,128
Exercise of share options 24,163 43,050 55,550
--------------------------- ---------- ---------- ------------
End of the period 6,220,841 6,184,178 6,196,678
--------------------------- ---------- ---------- ------------
During the first six months of 2019 the following allotments took place:
-- 24,163 Ordinary shares were issued to satisfy the exercise of share options as follows: -- on 5 February 2019 when the mid-market share price was 2,660.0p; -- on 22 February 2019 when the mid-market share price was 2,700.0p; -- on 29 March 2019 when the mid-market share price was 2,690.0p; -- on 3 April 2019 when the mid-market share price was 2,720.0p; -- on 12 April 2019 when the mid-market share price was 3,070.0p; -- on 26 April 2019 when the mid-market share price was 3,175.0p; -- on 3 May 2019 when the mid-market share price was 3,115.0p; -- on 8 May 2019 when the mid-market share price was 3,105.0p; and -- on 3 June 2019 when the mid-market share price was 3,090.0p.
8. Changes in net cash
Changes in net cash for the six months ended 30 June 2019 were as follows:
1 January Non-cash 30 June
2019 Cashflow items 2019
GBP000 GBP000 GBP000 GBP000
------------------------------------- --------- -------- -------- --------
Cash at bank and in hand 15,727 5,026 27 20,780
Bank debt (14,836) 1,440 (2) (13,398)
------------------------------------- --------- -------- -------- --------
Net cash including senior debt 891 6,466 25 7,382
Subordinated debt to non-controlling
shareholders (190) - - (190)
Total net cash 701 6,466 25 7,192
Subordinated debt to non-controlling
shareholders 190 - - 190
------------------------------------- --------- -------- -------- --------
Adjusted net cash 891 6,466 25 7,382
------------------------------------- --------- -------- -------- --------
Non-cash items primarily represent foreign exchange differences on foreign currency bank balances.
9. Acquisitions
On 29 March 2019 PE.fiberoptics Limited ("PFO"), one of the Company's subsidiaries, acquired the remaining shares of a third party shareholder for a consideration of GBP0.4 million. As a result, the Group's interest in PFO increased from 67.5% to 74.5%.
10. Defined benefit scheme
The Group's defined benefit pension scheme liability has increased to GBP2.2 million compared to GBP1.8 million at 31 December 2018, due to a decrease of 0.5% in the discount rate to 2.3% from 2.8% at 31 December 2018.
11. Dividends
During the period, the Company paid no dividends (Period to 30 June 2018: GBPnil).
The Company paid a final dividend of 28.0p per share totalling GBP1.7 million to shareholders on 5 July 2019 relating to the financial year ended 31 December 2018 (22.0 p per share totalling GBP1.4 million relating to the financial year ended 31 December 2017).
The Company will pay an interim dividend for 2019 of 15.0p per share (2018: interim dividend of 12.0p per share) on 1 November 2019 to shareholders on the register on 4 October 2019. The shares will go ex-dividend on 3 October 2019.
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
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