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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Nexus Infrastructure Plc | LSE:NEXS | London | Ordinary Share | GB00BZ77SW60 | ORD GBP0.02 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 72.50 | 65.00 | 80.00 | 0.00 | 07:49:08 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Management Services | 88.69M | 58.8M | 1.4546 | 0.50 | 29.31M |
From Apr 2019 to Apr 2024
TIDMNEXS
RNS Number : 7521P
Nexus Infrastructure PLC
12 June 2020
12 June 2020
Nexus Infrastructure plc
("Nexus" or the "Group" or the "Company")
Interim results for the six months ended 31 March 2020
Nexus Infrastructure plc, a leading provider of essential infrastructure services, utilities connections and smart energy infrastructure, today announces its unaudited interim results for the six months ended 31 March 2020.
Mike Morris, Chief Executive of Nexus, commented:
"Nexus' operational and financial performance for the six months to 31 March 2020 was positive and in line with the Board's expectations. However, the arrival of the COVID-19 pandemic towards the end of H1 severely impacted activity levels across our business with housebuilding customers pausing work and closing down sites. As previously announced, the Board has taken numerous and immediate actions to conserve cash and maintain profitability, in order to mitigate against the impact of COVID-19.
"The fundamentals of the UK housing market remain very attractive. We believe that Nexus, with its sustainable business model, growth strategy and strong cash flow characteristics, will emerge from this crisis in a strong position and will be able to capitalise on opportunities to drive future outperformance and long-term value creation for shareholders."
Interim Results Highlights:
-- Group revenue of GBP84.2m (H1 2019: GBP71.0m), an increase of 18.5% and in line with the Board's expectations
-- Group operating profit of GBP3.5m (H1 2019: 2.9m), an increase of 19.6% reflecting a significant improvement in revenue and profits for Tamdown, and continued growth from TriConnex
-- Strong balance sheet with a net cash position of GBP8.7m (H1 2019: GBP12.4m) with gross cash of GBP19.7m (H1 2019: GBP17.8m)
-- Group net assets of GBP24.6m (H1 2019: GBP21.3m)
Response to COVID-19:
-- Significant and immediate actions taken to mitigate the unprecedented impact of COVID-19 -- Focus on ensuring the safety and well-being of all employees, customers and communities -- Furloughed 87% of the workforce in line with the Government's Job Retention Scheme
-- Cut all non-essential capital expenditure, discretionary expenditures and implemented a recruitment freeze
-- CEO has taken a 100% reduction in salary
-- Non-Executive Directors, CFO and senior management have taken a reduction of up to 50% of their salary
-- Fully drawn GBP5m revolving credit facility to maximise liquidity position
-- Working with customers on appropriate social distancing measures and new health and safety site protocols
Outlook :
-- Group order book remains strong at GBP300m (H1 2019: GBP311m) with a diverse range of work and customers. To date no orders have been cancelled due to COVID-19
-- Particularly strong order book momentum within TriConnex. Since March TriConnex has continued to see good demand for essential utility services
-- eSmart Networks has continued to deliver electric vehicle and smart energy infrastructure schemes, with record levels of new sales enquires in April and May
-- Housebuilding customers are now returning to work, which is positive but general caution remains
-- Return to work mobilisation challenges expected in the short-term as site activity starts to increase
-- Longer-term, the Board believes Nexus will emerge from the COVID-19 crisis in a better position with a strong balance sheet which will allow the Group to capitalise on opportunities and drive future outperformance.
Enquiries:
Nexus Infrastructure plc Tel: 01376 320856 Michael Morris, Chief Executive Officer Alan Martin, Chief Financial Officer Numis Securities Limited Tel: 0207 260 1200 (Nominated Adviser & Broker) Oliver Hardy (Nomad) Heraclis Economides Ben Stoop Financial Public Relations Tel: 0203 757 4992 Camarco Ginny Pulbrook Tom Huddart Oliver Head
Notes to Editors:
Nexus is a leading provider of essential infrastructure services to the UK housebuilding and commercial sectors. The Group comprises: Tamdown, a provider of specialised civil engineering, infrastructure and concrete frame services; TriConnex which designs, installs and connects utility networks to properties on new residential and commercial developments; and eSmart Networks which focuses on electric vehicle charging and smart grid infrastructure.
Tamdown has a well-established market position having been in operation for over 40 years and currently counts amongst its customers the majority of the top ten largest UK housebuilders. TriConnex was established in 2011 to take advantage of deregulation in the utilities market with the goal of being recognised as the UK's leading independent provider of utility connections to new developments. eSmart Networks was set up in 2017 to respond to the UK's need for charging infrastructure as the transition to electric vehicles gathers pace alongside the need for smart energy solutions.
Business and Financial Review
The Group recorded revenue and operating profit growth ahead of the performance in H1 2019, despite the impact of COVID-19, which disrupted trading in March 2020.
Group revenue increased 18.5% to GBP84.2m (H1 2019: GBP71.0m), with Group operating profit increasing by 19.6% to GBP3.5m (H1 2019: GBP2.9m), reflecting a significant improvement in revenue and profits for Tamdown, with continued growth within TriConnex.
The Group's balance sheet remained strong with net assets of GBP24.6m at 31 March 2020 compared to GBP21.3m at 31 March 2019. Included within the net assets balance is cash and cash equivalents of GBP19.7m (31 March 2019: GBP17.8m) and net cash as at 31 March 2020 was GBP8.7m (31 March 2019: GBP12.4m).
Tamdown
Tamdown provides a range of specialised infrastructure and engineering services to the UK housebuilding sectors, with operations focused on the South East of England and London. Tamdown has an established market-leading position, with a reputation for providing quality services. The fundamental structural undersupply of the housing market and the Government's desire to open this sector of the economy as quickly as possible provides us with confidence that, despite short-term COVID-19 driven issues, our customers will continue to demand our services.
Tamdown's revenue during the period increased by 21.1% to GBP61.5m (H1 2019: GBP50.8m). The increase in revenue was as a result of Tamdown's strong opening order book and customers being keen to progress sites. However, trading in March 2020 started to be impacted by COVID-19, with many sites slowing down works and eventually closing. As a result, Tamdown took the difficult decision to furlough 98% of its staff in April given that all of Tamdown's sites were closed during this period.
Gross profit increased by 11.2% to GBP7.5m (H1 2019: GBP6.8m) with gross margins for the period at 12.3% (H1 2019: 13.3%) impacted by unproductive working and site closures during March 2020 as a result of COVID-19.
Operating profit increased by 47.6% to GBP2.7m (H1 2019: GBP1.8m), with operating margins increasing to 4.4% (H1 2019: 3.6%) due to tight overhead controls mitigating the decrease in gross margin.
The order book at 31 March 2020 was GBP114.9m (H1 2019: GBP145.0m). The decrease in the order book in the period was caused by customers being keen to progress with sites (with orders converting at a strong rate into revenue as services were delivered) and work winning being impacted by the uncertainty caused by the General Election in December 2019 and COVID-19 towards the end of the period.
Since the start of May, housebuilders have begun to reopen sites. We currently anticipate that all of Tamdown's sites will be active again during June 2020, though activity levels are expected to be far lower than pre-COVID-19 levels. We are continuing to work with our customers on appropriate social distancing and health and safety protocols on site to ensure the safety of staff whilst maximising working efficiency.
Whilst in the short-term Tamdown is likely to see a significant reduction in activity levels and revenues we remain confident in the longer-term prospects of the sector and the business.
TriConnex
TriConnex designs, installs and connects gas, electricity, water and fibre networks on new residential and commercial developments, with operations in the South East, Midlands and South West of England.
TriConnex's revenue during the period increased by 19.3% to GBP23.2m (H1 2019: 19.5m). Gross profit increased by 17.6% to GBP7.1m (H1 2019: 6.0m) with gross margins for the period at 30.6% (H1 2019: 31.0%)
Operating profit increased by 7.7% to GBP2.5m (H1 2019: GBP2.3m), with the operating margin declining to 10.6% (H1 2019: 11.7%) due to the slight decrease in gross margin and year-on-year investment in overhead to support revenue growth.
TriConnex continues to differentiate itself in the market through the provision of a full multi-utility service offering design through to connection, coupled with a deep focus on outstanding customer service. The business continues to be successful in securing orders, with the order book increasing by 11.9% year-on-year to GBP182.4m (H1 2019: GBP163.0m).
Activity on site since March 2020 has been affected by COVID-19 resulting in 74% of staff being furloughed. However, some customers remained active during April and May and TriConnex has continued to deliver its full range of services to these customers throughout the crisis. We anticipate that the majority of TriConnex's sites will be active by the end of June 2020.
Notwithstanding the effects of COVID-19, the fundamental market growth drivers for the business are positive which means that TriConnex is well positioned to continue delivering its growth trajectory over the medium and longer-term.
eSmart Networks
eSmart Networks was created to respond to the UK's need for charging infrastructure as the transition from internal combustion engine to electric vehicles (EV) gathers pace, alongside the need for smart energy solutions. eSmart Networks provides a quality end-to-end solution of design, installation and connection of EV charging infrastructure, battery storage, renewable energy connections and smart grid infrastructure, for a variety of customer types. The skills and capabilities within the business allow us to provide solutions for customers, with our ability to control the timescale and grid connection process resulting in accelerated installations for customers.
Revenue for the period totalled GBP1.1m (H1 2019: GBP0.7m), an increase of 46.7%. Gross margin in the period was 21.3% with gross profit of GBP0.2m (H1 2019: GBP0.2m). The business continued to invest in order to scale up in the period, resulting in an operating loss of GBP0.7m (H1 2019: GBP0.4m loss).
eSmart Networks' order book at 31 March 2020 was GBP2.2m (H1 2019: GBP3.0m). Despite the pandemic the business is seeing increased enquiry levels, with a record GBP8.4m of sales enquires being received in April 2020, demonstrating the high demand nature of the market.
We are confident that eSmart Networks is well placed to address this substantial growth market and continued careful investment is required to deliver on its stated growth ambitions.
Dividend
Given the uncertainty surrounding the remainder of our financial year, the Board considers it is prudent to suspend the payment of dividends until further notice. Accordingly, an interim dividend will not be paid (HY 2019: 2.2 p per share). The Group's dividend policy will be reviewed prior to the announcement of our Final Results in December 2020, and it is our intention to restart the payment of dividends as soon as it is responsible to do so.
Financial Overview
Income statement
Group revenue increased 18.5% to GBP84.2m (H1 2019: GBP71.0m), with revenue growth across all businesses.
Group gross profit increased by 14.6% to GBP14.9m (H1 2019: GBP13.0m), with an overall gross margin of 17.7% (H1 2019: 18.3%).
The Group's operating profit totalled GBP3.5m (H1 2019: GBP2.9m). Net finance costs totalled GBP0.1m (H1 2019: GBP0.1m) resulting in profit before tax of GBP3.4m (H1 2019: GBP2.8m).
The tax charge for the period was GBP0.8m (H1 2019: GBP1.1m) reflecting an effective rate of 24.2% (H1 2019: 37.9%).
The profit after tax for the period totalled GBP2.6m (H1 2019: GBP1.7m).
Basic earnings per share for the period was 6.70p (H1 2019: 4.56p).
Guidance on the Group's future performance remains withdrawn at this stage. The Company intends to reinstate guidance when there is more clarity on the economic outlook and trading environment.
Statement of financial position and Cash Flow
The Group's balance sheet remains strong with net assets standing at GBP24.6m at 31 March 2020 compared to GBP21.3m at 31 March 2019. Included within the net assets balance is cash and cash equivalents of GBP19.7m (31 March 2019: GBP17.8m), with net cash, adjusting for borrowings, totalling GBP8.7m (31 March 2019: GBP12.4m).
In line with the prior year, cash was utilised in the first half of the year, with operating activities utilising GBP8.7m (H1 2019: GBP4.3m). Dividends utilised GBP1.7m (H1 2019: GBP1.7m) and other financing activities, including the draw down and repayment of loans and leases, generated a net GBP2.0m in the first half (H1 2019: consumed GBP1.8m) resulting in closing cash and cash equivalents of GBP19.7m (this includes GBP5.0m from the Group's revolving credit facility which was fully drawn in March 2020 to maximise liquidity position).
Risks and Uncertainties
The Group is subject to a number of risks and uncertainties as part of its activities. The Board regularly considers these and seeks to ensure that appropriate processes are in place to identify, monitor, mitigate and control these risks. The Directors have reconsidered the principal risks and uncertainties facing the Group in light of the COVID-19 pandemic, particularly the risk of a market downturn and health and safety issues. The Directors believe that the principal risks and uncertainties remain those as outlined on pages 30 to 33 of the Report and Accounts for the year ended 30 September 2019.
Summary and Outlook
The results for the period under review demonstrate that the services of the Group are in high demand with our customers. Nexus serves a wide range of customers, including large and medium housing developers, affordable housing suppliers, local authorities and EV/renewable energy companies. Currently the Group works with 176 customers, 97 of which have been secured since the IPO in July 2017, which together with our robust Group order book of GBP300m provides us with confidence for the future.
While the COVID-19 pandemic, which affected the last few weeks of the period under review, has resulted in a dramatic change for the UK economy and our industry, we have a strong balance sheet which will allow management to run the business for longer-term growth.
The Board believes that Nexus, with its sustainable business model, growth strategy, strong cash flow characteristics and experienced management team, will emerge from this crisis significantly stronger and will be able to capitalise on opportunities to drive future outperformance.
Mike Morris
Chief Executive Officer
Condensed consolidated statement of comprehensive income
For the six months to 31 March 2020
Hot Features
Premium
Unaudited Unaudited Audited
Six months Six months Year ended
to to 30 September
31 March 31 March 2019
Note 2020 2019 GBP'000
GBP'000 GBP'000
------------------------------------- ------- ------------ ------------ --------------
Revenue 2 84,194 71,022 155,103
Cost of sales (69,310) (58,035) (127,178)
Gross profit 14,884 12,987 27,925
------------ ------------ --------------
Administrative expenses (11,374) (10,053) (21,940)
Operating profit 3,510 2,934 5,985
------------ ------------ --------------
Finance income 32 26 59
Finance expense (173) (159) (339)
Profit before taxation 3,369 2,801 5,705
Taxation 4 (815) (1,061) (1,530)
Profit and total comprehensive
income for the period attributable
to equity holders of the parent 2,554 1,740 4,175
------------ ------------ --------------
Earnings per share (p per share)
Basic 6 6.70 4.56 10.95
Diluted 6 6.44 4.35 10.63
Condensed consolidated statement of financial position
at 31 March 2020
Unaudited Unaudited Audited
Six months Six months Year ended
to to 30 September
31 March 31 March 2019
Note 2020 2019 GBP'000
GBP'000 GBP'000
------------------------------- ------- ------------ ------------ --------------
Non-current assets
Property, plant and equipment 8,882 9,417 6,992
Right of use assets 3,811 1,724 4,845
Goodwill 2,361 2,361 2,361
Other investments 43 43 43
Deferred tax asset - 7 -
------------ ------------ --------------
Total non-current assets 15,097 13,552 14,241
Current assets
Inventories 658 5,648 378
Trade and other receivables 46,524 34,149 40,922
Contract assets 18,093 12,353 11,986
Corporation tax asset 32 - -
Cash and cash equivalents 19,653 17,836 27,366
------------ ------------ --------------
Total current assets 84,960 69,986 80,652
------------ ------------ --------------
Total assets 100,057 83,538 94,893
------------ ------------ --------------
Current liabilities
Borrowings 7 3,900 2,000 2,000
Trade and other payables 34,432 29,902 39,392
Contract liabilities 25,824 21,024 22,572
Lease liabilities 1,322 1,624 1,461
Corporation tax liability - 702 164
------------ ------------ --------------
Total current liabilities 65,478 55,252 65,589
Non-current liabilities
Borrowings 7 7,103 3,400 2,745
Lease liabilities 2,701 3,539 3,136
Deferred tax liabilities 152 - 152
------------ ------------ --------------
Total non-current liabilities 9,956 6,939 6,033
------------ ------------ --------------
Total liabilities 75,434 62,191 71,622
------------ ------------ --------------
Net assets 24,623 21,347 23,271
------------ ------------ --------------
Equity attributable to equity
holders of the Company
Share capital 762 762 762
Retained earnings 23,861 20,585 22,509
Total equity 24,623 21,347 23,271
------------ ------------ --------------
Condensed consolidated statement of changes in equity
For the six months to 31 March 2020
Share Retained Total
capital earnings
GBP'000 GBP'000 GBP'000
--------------------------------------- --------- ---------- ---------
Equity at 1 October 2018 (Audited) 762 21,049 21,811
--------- ---------- ---------
Transactions with owners
Dividend paid - (1,677) (1,677)
Share-based payments 260 260
--------- ---------- ---------
- (1,417) (1,417)
Total comprehensive income
Profit and total comprehensive income
for the period - 1,740 1,740
Opening IFRS 15 adjustment - (787) (787)
- 953 953
Equity at 31 March 2019 (Unaudited) 762 20,585 21,347
--------- ---------- ---------
Transaction with owners
Dividend paid - (838) (838)
Share-based payments - 327 327
- (511) (511)
Total comprehensive income
Profit and total comprehensive income
for the period - 2,435 2,435
- 2,435 2,435
Equity at 30 September 2019 (Audited) 762 22,509 23,271
--------- ---------- ---------
Transaction with owners
Dividend paid - (1,677) (1,677)
Share-based payments - 475 475
--------- ---------- ---------
- (1,202) (1,202)
Total comprehensive income
Profit and total comprehensive income
for the period - 2,554 2,554
- 2,554 2,554
Equity at 31 March 2020 (Unaudited) 762 23,861 24,623
--------- ---------- ---------
Condensed consolidated statement of cash flows
For the six months to 31 March 2020
Unaudited Unaudited Audited
Six months Six months Year ended
to to 30 September
31 March 31 March 2019
2020 2019 GBP'000
GBP'000 GBP'000
--------------------------------------------- ------------ ------------ --------------
Cash flow from operating activities
Profit before tax 3,369 2,801 5,705
Adjusted by:
Loss/(profit) on disposal of plant
and equipment - owned 60 (62) (40)
Loss on disposal of plant and equipment
- right of use - - 6
Share-based payments 475 261 587
Finance expense (net) 141 133 280
Depreciation of property, plant and
equipment - owned 430 986 686
Depreciation of property, plant and
equipment - right of use 597 - 1,504
------------ ------------ --------------
Operating profit before working capital
charges 5,072 4,119 8,728
Working capital adjustments:
Increase in trade and other receivables (11,709) (4,992) (8,111)
Increase in inventories (280) (2,331) (349)
(Decrease)/increase in trade and other
payables (1,760) (1,115) 9,927
------------ ------------ --------------
Cash (used in)/generated from operating
activities (8,677) (4,319) 10,195
Interest paid (121) (159) (339)
Taxation paid (1,011) (819) (1,667)
Net cash flows (used in)/generated
from operating activities (9,809) (5,297) 8,189
------------ ------------ --------------
Cash flow from investing activities
Purchase of property, plant and equipment
- owned (2,107) (562) (2,071)
Proceeds from disposal of property,
plant and equipment - owned 463 702 665
Proceeds from disposal of property,
plant and equipment - right of use - - 50
Proceeds from the disposal of assets
measured at FVOCI - 4 4
Interest received 32 26 59
------------ ------------ --------------
Net cash (used in)/generated from investing
activities (1,612) 170 (1,293)
------------ ------------ --------------
Cash flow from financing activities
Dividend payment (1,677) (1,677) (2,515)
Drawdown of term loan 6,758 - 345
Repayment of loans (500) (1,000) (2,000)
Principal elements of lease repayments (873) (774) (1,774)
Net cash generated from/(used in) financing
activities 3,708 (3,451) (5,944)
Net change in cash and cash equivalents (7,713) (8,578) 952
------------ ------------ --------------
Cash and cash equivalents at the beginning
of the period 27,366 26,414 26,414
------------ ------------ --------------
Cash and cash equivalents at the end
of the period 19,653 17,836 27,366
------------ ------------ --------------
Notes to the condensed consolidated financial statements
For the six months to 31 March 2020
1. Basis of preparation and accounting policies
The interim report of the Group for the six months ended 31 March 2020 has been prepared in accordance with IAS 34 "Interim Financial Reporting" and International Financial Reporting Standards ("IFRS") as adopted for use in the European Union ("EU") and in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority.
The interim report does not constitute financial statements as defined in Section 434 of the Companies Act 2006 and is neither audited nor reviewed. It should be read in conjunction with the Report and Accounts for the year ended 30 September 2019, which is available on request from the Group's registered office, 1 Tamdown Way, Braintree, Essex, CM7 2QL, or can be downloaded from the website www.nexus-infrastructure.com.
The comparative information for the financial year ended 30 September 2019 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been reported on by the Company's auditor and delivered to the Registrar of Companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters which the auditor drew attention by the way of emphasis without qualifying their report and (iii) did not contain statements under section 498 (2) or (3) of the Companies Act 2006.
The interim report has been prepared on the basis of the accounting policies as set out in the Report and Accounts for the year ended 30 September 2019.
In preparing this interim report, the significant estimates and judgements made by the Directors in applying the Group's accounting policies and financial risk management objectives, were the same as those set out in the Report and Accounts for the year ended 30 September 2019.
Going concern
In determining the appropriate basis of preparation of the interim report, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future. The Directors have prepared detailed forecasts for a range of different scenarios, mindful of the uncertainty in the market due to the impact of COVID-19. The Group is maintaining a strong relationship with its bankers and has agreed alternative covenants on committed banking facilities. The forecasts show the Group continues to have a robust balance sheet and significant financial headroom on these facilities. Accordingly, the Directors are comfortable that there is sufficient cash liquidity and covenant headroom within the banking facilities; therefore, they continue to adopt the going concern basis in preparing the interim report.
Notes to the condensed consolidated financial statements (continued)
For the six months to 31 March 2020
2. Revenue
Revenues from external customers are generated from the supply of services relating to construction contracts, design, installation and connection of utility networks and electric vehicle and smart grid infrastructure. Revenue is recognised over time in the following operating divisions.
Unaudited 31 March 2020
Tamdown TriConnex eSmart Networks Total
GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- ---------- ---------------- --------
Segment revenue 61,479 23,248 1,093 85,820
Inter-segment revenue (1,626) - - (1,626)
-------- ---------- ---------------- --------
Revenue from external
customers 59,853 23,248 1,093 84,194
-------- ---------- ---------------- --------
Timing of revenue
recognition
-------- ---------- ---------------- --------
Over time 59,853 23,248 1,093 84,194
-------- ---------- ---------------- --------
Customer type
Residential 58,657 23,248 - 81,905
Non-residential 1,196 - 1,093 2,289
-------- ---------- ---------------- --------
59,853 23,248 1,093 84,194
-------- ---------- ---------------- --------
Unaudited 31 March 2019
Tamdown TriConnex eSmart Networks Total
GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- ---------- ---------------- --------
Segment revenue 50,783 19,494 745 71,022
Inter-segment revenue - - - -
-------- ---------- ---------------- --------
Revenue from external
customers 50,783 19,494 745 71,022
-------- ---------- ---------------- --------
Timing of revenue
recognition
-------- ---------- ---------------- --------
Over time 50,783 19,494 745 71,022
-------- ---------- ---------------- --------
Customer type
Residential 50,663 19,494 - 70,157
Non-residential 120 - 745 865
-------- ---------- ---------------- --------
50,783 19,494 745 71,022
-------- ---------- ---------------- --------
Audited 30 September 2019
Tamdown TriConnex eSmart Networks Total
GBP'000 GBP'000 GBP'000 GBP'000
----------------------- -------- ---------- ---------------- --------
Segment revenue 112,228 41,798 2,108 156,134
Inter-segment revenue (1,031) - - (1,031)
-------- ---------- ---------------- --------
Revenue from external
customers 111,197 41,798 2,108 155,103
-------- ---------- ---------------- --------
Timing of revenue
recognition
-------- ---------- ---------------- --------
Over time 111,197 41,798 2,108 155,103
-------- ---------- ---------------- --------
Customer type
Residential 110,615 41,798 - 152,413
Non-residential 582 - 2,108 2,690
-------- ---------- ---------------- --------
111,197 41,798 2,108 155,103
-------- ---------- ---------------- --------
Inter-segment revenues are earned on an arm's length basis.
Notes to the condensed consolidated financial statements (continued)
For the six months to 31 March 2020
3. Segmental analysis
The Group is organised into the following three operating divisions under the control of the Executive Board, which is identified as the Chief Operating Decision Maker as defined under IFRS 8: Operating Segments:
-- Tamdown; -- TriConnex; and -- eSmart Networks
All of the Groups operations are carried out entirely within the UK.
Segment information about the Group's operations is presented below:
Unaudited Unaudited Audited
Six months Six months Year ended
to to 30 September
31 March 31 March 2019
2020 2019 GBP'000
GBP'000 GBP'000
--------------------------------------- ------------ ------------ --------------
Revenue
Tamdown 61,479 50,783 112,228
TriConnex 23,248 19,494 41,798
eSmart Networks 1,093 745 2,108
Inter-company trading (1,626) - (1,031)
------------ ------------ --------------
Total revenue 84,194 71,022 155,103
Gross profit
Tamdown 7,540 6,778 14,547
TriConnex 7,111 6,045 12,885
eSmart Networks 233 164 493
------------ ------------ --------------
Total gross profit 14,884 12,987 27,925
Operating profit
Tamdown 2,715 1,840 4,033
TriConnex 2,456 2,280 4,319
eSmart Networks (707) (364) (621)
Group administrative expenses (954) (822) (1,746)
------------ ------------ --------------
Total operating profit 3,510 2,934 5,985
Net finance cost (141) (133) (280)
------------ ------------ --------------
Profit before tax 3,369 2,801 5,705
Taxation (815) (1,061) (1,530)
------------ ------------ --------------
Profit and total comprehensive income
for the period 2,554 1,740 4,175
------------ ------------ --------------
Notes to the condensed consolidated financial statements (continued)
For the six months to 31 March 2020
3. Segmental analysis (continued)
Statement of financial position analysis of business segments:
Unaudited 31 March 2020
Assets Liabilities Net Assets
GBP,000 GBP'000 GBP'000
----------------- --------- ------------ -----------
Tamdown 46,465 30,853 15,612
TriConnex 23,567 31,276 (7,709)
eSmart Networks 761 966 (205)
Group 9,611 12,339 (2,728)
Net Cash 19,653 - 19,653
--------- ------------ -----------
100,057 75,434 24,623
--------- ------------ -----------
Unaudited 31 March 2019
Assets Liabilities Net Assets
GBP,000 GBP'000 GBP'000
----------------- --------- ------------ -----------
Tamdown 38,458 27,475 10,983
TriConnex 20,833 28,740 (7,907)
eSmart Networks 37 43 (6)
Group 6,374 5,933 441
Net Cash 17,836 - 17,836
--------- ------------ -----------
83,538 62,191 21,347
--------- ------------ -----------
Audited 30 September
2019
Assets Liabilities Net Assets
GBP,000 GBP'000 GBP'000
----------------- --------- ------------ -----------
Tamdown 38,931 35,674 3,257
TriConnex 20,576 29,849 (9,273)
eSmart Networks 828 542 286
Group 7,609 5,974 1,635
Net Cash 27,366 - 27,366
--------- ------------ -----------
95,310 72,039 23,271
--------- ------------ -----------
4. Taxation
Taxation is recognised based on management's estimate of the weighted average effective annual tax rate expected for the full financial year. The estimated effective annual tax rate applied to the pre-tax income for the six months ended 31 March 2020 is 24.2%.
5. Dividends
Unaudited Unaudited Audited
Six months Six months Year ended
to to 30 September
31 March 31 March 2019
2020 2019 GBP'000
GBP'000 GBP'000
--------------------------------------- ------------ ------------ --------------
Amounts recognised as distributions
to equity holders:
Final dividend for the year ended
30 September 2018 of 4.4p per share - 1,677 1,677
Interim dividend for the year ended
30 September 2019 of 2.2p per share - - 838
Final dividend for the year ended 1,677 - -
30 September 2019 of 4.4p per share
------------ ------------ --------------
1,677 1,677 2,515
------------ ------------ --------------
Notes to the condensed consolidated financial statements (continued)
For the six months to 31 March 2020
6. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of shares in issue for the period.
Diluted earnings per share is calculated by adjusting the weighted average number of shares in issue for the period to assume conversion of all dilutive potential shares.
The calculation of the basic and diluted earnings per share is based on the following data:
Unaudited Unaudited Audited
Six months Six months Year ended
to to 30 September
31 March 31 March 2019
2020 2019 GBP'000
GBP'000 GBP'000
---------------------------------------- ------------ ------------ --------------
Profit for the period attributable
to equity shareholders 2,554 1,740 4,175
------------ ------------ --------------
Weighted average number of shares
in issue for the period 38,117,850 38,117,850 38,117,850
Effect of dilutive potential ordinary
shares:
Share options 1,532,552 1,923,418 1,170,294
Weighted average number of shares
for the purpose of diluted earnings
per share 39,650,402 40,041,268 39,288,144
Basic earnings per share (p per share) 6.70 4.56 10.95
Diluted earnings per share (p per
share) 6.44 4.35 10.63
------------ ------------ --------------
7. Borrowings
Unaudited Unaudited Audited
Six months Six months Year ended
to to 30 September
31 March 31 March 2019
2020 2019 GBP'000
GBP'000 GBP'000
------------- ------------ ------------ --------------
Current 3,900 2,000 2,000
Non-current 7,103 3,400 2,745
------------ ------------ --------------
The Company entered into a GBP12.0m five-year facility with Allied Irish Bank in December 2015. The loan is secured over the whole of the Company's undertaking and assets and by way of cross guarantee from other Group undertakings. The loan carries interest at LIBOR plus 2.25% and is repayable in instalments of GBP2.0m per annum with a termination payment in October 2020.
The Company entered into a GBP10.0m ten-year term facility and GBP5.0m five-year revolving credit facility with an accordion facility extension of GBP5.0m with Allied Irish Bank in August 2019. The loan is secured over the whole of the Company's undertakings and assets and by way of cross guarantee from other Group undertakings. The loan carried interest at LIBOR plus up to 2.20% and is repayable in instalments of GBP750,000 per annum.
8. Related party transactions
There have been no significant changes in the nature and amount of related party transactions since the last Report and Accounts as at, and for the year ended 30 September 2019.
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated in full on consolidation.
Notes to the condensed consolidated financial statements (continued)
For the six months to 31 March 2020
Statement of Directors' responsibilities
The Directors confirm that, to the best of our knowledge:
-- the condensed set of financial statements has been prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the European Union; and
-- the interim management report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
-- the interim management report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual Report and Accounts that could do so.
Signed on 11 June 2020 on behalf of the Board
Mike Morris Alan Martin
Chief Executive Officer Chief Financial Officer
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 EAAKFFSFEEAA
(END) Dow Jones Newswires
June 12, 2020 02:00 ET (06:00 GMT)
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