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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Pebble Beach Systems Group Plc | LSE:PEB | London | Ordinary Share | GB0001482891 | ORD 2.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 10.50 | 10.00 | 11.00 | 10.50 | 9.90 | 10.50 | 7,202 | 08:00:06 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Radio, Tv Broadcast, Comm Eq | 12.37M | 1.53M | 0.0123 | 8.54 | 13.07M |
From Apr 2019 to Apr 2024
TIDMPEB
RNS Number : 7558Y
Pebble Beach Systems Group PLC
24 August 2018
Pebble Beach Systems Group plc
Results for the half year ended 30 June 2018
Pebble Beach Systems Group plc, a leading global software business specialising in solutions for playout automation and content serving customers in the broadcast markets, today announces its unaudited results for the half year ended 30 June 2018.
Financial Headlines
For the half year ended 30 June 2018
Hot Features
Premium
2018 2017
------------------------------------------------ ----------- -----------
Revenue GBP3.7m GBP4.6m
Adjusted* operating profit/(loss) - continuing GBP0.6m GBP(1.0)m
operations
Adjusted* earnings/(loss) per share) -
continuing operations 0.4p (0.9)p
Operating loss - continuing operations GBP(0.8)m GBP(2.0)m
Basic loss per share (0.6)p (1.6)p
Net profit from discontinued operations GBP0.1m GBP3.7m
Net (loss)/profit for the half year GBP(0.7)m GBP1.7m
Basic (loss)/earnings per share (0.6)p 1.4p
Net debt GBP(10.5)m GBP(11.1)m
Total dividend per share proposed - -
------------------------------------------------ ----------- -----------
*Adjusted operating profit/(loss), a non-GAAP measure, is operating profit/(loss) before depreciation, the amortisation and impairment of goodwill and acquired intangibles, the amortisation of capitalised development costs, non-recurring items and foreign exchange gains (see note 4). Adjusted earnings per share is calculated on the same basis after taking account of related tax effects.
Headlines
-- Adjusted operating profit for the continuing business of GBP0.6 million (loss in 2017: GBP(1.0 million))
-- Costs of the continuing operations reduced by GBP1.5 million for the first six months of 2018. This was achieved though the closure of the PLC head office in 2017 and the restructure of Pebble Beach Systems operations in 2018
-- Gross margin has improved to 73% (2017: 57%)
-- Steady performance of Pebble Beach Systems, despite general market conditions remaining challenging during ongoing period of technology change
-- Profitability is expected to continue to improve as higher margins are maintained, and the full year impact of the cost savings are realised in 2019
-- Net cash generated from operating activities improved significantly to GBP0.1 million (outflow in 2017: GBP6.5 million)
John Varney, Non-Executive Chairman of Pebble Beach Systems Group plc, said:
"The first half of 2018 has seen steady trading results which are in line with our expectations, and the significant steps taken to move to ongoing profitability and cash generation have proved to be effective.
We are strengthening our ability to develop the technology and services required to support customers through a period of significant technology change to underpin future growth.
With the issues of the past now behind us we look forward to focussing on the opportunities being presented by the changes in the broadcast market.
- ends -
For further information please contact:
+44 (0) 75 55 59
John Varney, Non-Executive Chairman 36 02
Shaun Dobson / James White +44 (0) 20 74 96
N+1 Singer 30 00
The Company is quoted on the LSE AIM market (PEB.L). More information can be found at www.pebbleplc.com.
About Pebble Beach Systems
Pebble Beach Systems is a world leader in automation, channel in a box, integrated and virtualised playout technology, with scalable products designed for highly efficient multichannel transmission as well as complex news and sports television. Installed in more than 70 countries and with proven systems ranging from single up to over 150 channels in operation, Pebble Beach Systems offers open, flexible systems, which encompass ingest and playout automation, and complex file-based workflows. The company trades in the US as Pebble Broadcast Systems.
Forward-looking statements
Certain statements in this announcement are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. The Group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast.
CHAIRMAN'S STATEMENT
Introduction
The first half of 2018 has focused on ensuring that we have a solid financial base on which to rebuild the business following the disposal of the hardware division.
Financial Results
Pebble Beach Systems achieved H1 revenue of GBP3.7 million (2017 H1: GBP4.6 million).
Unsettled market conditions during this period of technology and commercial transition delayed certain orders in H1 which are now scheduled for H2.
The Board is confident of improvements in H2, with an increased backlog of GBP4.7 million at 30 June 2018 and a growing pipeline leading to improved revenue for the period with full year revenue marginally below FY17.
The business has historically high margins which were under pressure during 2017 as a result of a number of projects being completed ahead of the Harmonic OEM agreement coming to an end in March 2018. The number of projects increased as Harmonic looked to utilise the non-refundable software licences. The margins have shown the expected recovery in FY18.
Adjusted operating profit was GBP0.6 million in the first half of 2018 (loss in 2017: GBP1.0 million) before the deduction of depreciation and amortisation costs of GBP1.2 million and non-recurring costs of GBP0.2 million. Headcount reductions made in early FY18 from 78 to 62 have contributed to adjusted operating profit improvement.
In the first half Central costs were GBP0.2 million (2017: GBP1.2 million). This decrease is due to a GBP0.2 million release of the Pebble Beach Systems VCP accrual in 2018 (2017: release of GBP0.5 million), the closure in 2017 of the head office in Hungerford and consolidation of head office roles with the operating business in Weybridge.
Net finance costs remained steady during H1 2018. The available Revolving Credit Facility (RCF) as at 30 June 2018 was GBP11.5 million (2017: GBP15.0 million) which had been fully drawn down. Interest paid on the RCF was GBP0.2 million (2017: GBP0.2 million). There is now no overdraft facility (2017: GBP1.0 million). In July 2018 in accordance with the terms of the RCF GBP0.3 million was paid down (2017: GBP3.5 million).
Liquidity risk has decreased as a result of combined secured bank loans and trade and other payables being reduced by GBP0.5 million, from GBP16.6 million at 30 June 2017 to GBP16.1 million at 30 June 2018.
The Company continues to view investment in the development of new products and services as key to future growth. In the first half of 2018 Pebble Beach Systems capitalised GBP0.4 million of development costs (2017: GBP0.4 million) and amortised GBP0.4 million (2017: GBP0.3 million).
xG Technology Inc. (xG)
Following the settlement of two historic creditors totaling $390k for $260k, excluding associated legal fees, the Board believes that there are no further liabilities relating to xG and $100k of provision not required has been released. A formal process to recover these sums from xG is currently underway.
Pebble Beach Systems Value Creation Plan (VCP)
The performance targets of the VCP had not been met and the Board concluded that no payments to participants would be made pursuant to the VCP. A GBP243,000 provision was credited to the income statement.
Dividends
As in previous years, the Board is not declaring an interim dividend.
Trading Outlook
The broadcast market continues to be challenging as customers assess how best to invest in the evolving technologies of IP and cloud-based infrastructures whilst maintaining their traditional infrastructure.
Orders for the second half are forecast to be stronger than the first half, and this improved pipeline underpins this outlook. This will feed through to improved revenue in the second half.
The Company expect the current trading trends to continue into 2019 during this period of technology and commercial transition.
John Varney
Non-Executive Chairman
For the six months ended 30 June 2018
FINANCIAL REVIEW
Divisions and Markets
For the half year ended 30 June 2018
Continuing Operations
2018 2017 Change
GBP'm GBP'm %
---------------------------------------- ------------ ------------ --------
(Unaudited) (Unaudited)
Pebble Beach Systems 3.7 4.6 -17.7%
--------
Total Revenue 3.7 4.6 -17.7%
---------------------------------------- ------------ ------------ --------
Pebble Beach Systems 0.8 0.2 255.9%
Central (0.2) (1.2) -83.6%
---------------------------------------- ------------ ------------ --------
Total adjusted operating profit/(loss) 0.6 (1.0) -155.9%
Pebble Beach Systems has contributed GBP3.7 million of revenues and GBP0.8 million of adjusted operating profit in the six months to 30 June 2018. Non-recurring items excluded from adjusted profit comprise a GBP0.2 million charge in respect of rationalisation and redundancy costs for restructuring the Pebble Beach Systems operations.
Intangible assets impairment
In accordance with the requirements of IAS 36 'Impairment of assets', goodwill is required to be tested for impairment on an annual basis, with reference to the value of the cash-generating units ("CGU") in question. The carrying value of goodwill at 30 June 2018 is GBP3.2 million (2017: GBP3.2 million) and relates solely to Pebble Beach Systems. There is significant headroom between the carrying value and the value of the forecast discounted cash flows.
Acquired intangibles had a carrying value of GBP1.8 million (2017: GBP3.2 million) and capitalised development costs had a carrying value of GBP1.2 million (2017: GBP1.2 million). Impairment reviews are undertaken when the directors consider that there has been a potential indication of impairment.
Non-recurring items
The Group charged GBP0.2 million (2016: GBP(0.1) million) of non-recurring costs to the consolidated income statement. The charge comprised:
-- GBP0.2 million in respect of restructuring Pebble Beach Systems operations
Cash flows
The Group held cash and cash equivalents of GBP1.3 million at 30 June 2018 (2017: GBP1.5 million). Against this are set off debit balances of GBP0.3 million (2017: GBP1.1 million). The table below summarises the cash flows for the half year.
2018 2017
GBP'million GBP'million
----------------------------------------- ------------ --------------
Cash generated from/(used in) operating
activities 0.1 (6.5)
Net cash used in/(generated from)
investing activities (0.4) 10.8
Net cash used in financing activities - (4.0)
Effects of foreign exchange - (0.3)
----------------------------------------- ------------ --------------
Net increase/(decrease) in cash and
cash equivalents 0.3 (0.0)
Cash and cash equivalents at 1 January 1.2 0.5
----------------------------------------- ------------ --------------
Cash and cash equivalents at 30 June 1.0 0.4
----------------------------------------- ------------ --------------
As at 30 June 2018 net debt was GBP10.5 million (cash GBP1.3 million and bank debt of GBP11.8 million). At the end of July 2018, net debt had increased to GBP10.6 million. The Group was using GBP11.5 million of its available facilities in June 2018.
A marginally positive net increase in cash and cash equivalents is forecast for the second half of 2018. A scheduled debt repayment of GBP0.25 million was made in July 2018. Further repayments of GBP0.4 million and GBP0.2 million are due in September and December 2018 respectively.
Foreign exchange
The principal exchange rates used by the Group in translating overseas profits and net assets into sterling are set out in the table below.
Average Average Year end Year end
rate rate rate rate
Rate compared to GBP sterling 2018 2017 2018 2017
------------------------------ ------- ------- -------- --------
US dollar 1.376 1.260 1.320 1.299
------------------------------ ------- ------- -------- --------
Risk management
The Board regularly reviews the full range of business risks facing the Group. The approach adopted is to identify, evaluate and manage the likely impact of risk on the Group's business objectives. Where the risks are unavoidable they are managed through business controls and where appropriate through insurance and treasury activities.
The Group has a programme of regular risk assessment, which incorporates internal control reviews of both a financial and non-financial nature. A process of continuous review has been in place throughout the year at an operating company level to consider the risk environment and the effectiveness of controls. The results of reviews, initiatives and progress on implementing control improvements are regularly reported to the Board.
CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2018
6 months 6 months Year ended
to 30 June to 30 June 31 December
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
Notes GBP'000 GBP'000 GBP'000
Revenue 4 3,748 4,554 10,320
Cost of sales (1,028) (1,964) (3,831)
------------ ------------ -------------
Gross profit 2,720 2,590 6,489
Sales and marketing expenses (1,196) (1,133) (2,351)
Research and development expenses (600) (864) (1,762)
Administrative expenses (830) (1,935) (2,718)
Foreign exchange gains 26 42 (95)
Other expenses (871) (704) (1,931)
Operating loss 4 (751) (2,004) (2,368)
--------------------------------------------- ------ ------------ ------------ -------------
Operating loss is analysed as:
Adjusted operating profit/(loss) 559 (894) 500
Depreciation (65) (77) (187)
Amortisation and impairment of acquired
intangibles (704) (704) (1,419)
Amortisation of capitalised development
costs (400) (265) (655)
Non-recurring items (167) - (512)
Exchange (losses)/gains charged/credited
to the income statement 26 42 (95)
--------------------------------------------- ------ ------------ ------------ -------------
Finance costs (152) (180) (339)
Finance income 3 3 4
Loss before tax (900) (2,181) (2,703)
Tax 5 117 164 95
------------ ------------ -------------
Loss for the period being loss attributable
to owners of the parent (783) (2,017) (2,608)
Net result from discontinued operations 56 3,710 2,892
------------ ------------ -------------
Net result for the period (727) 1,693 284
Earnings per share from continuing
and
discontinued operations attributable
to the owners of
the parent during the period
Basic (loss)/earnings per share
From continuing operations 7 (0.6)p (1.6)p (2.1)p
From discontinuing operations 0.0p 3.0p 2.3p
------------ ------------ -------------
From loss for the period (0.6)p 1.4p 0.2p
--------------------------------------------- ------ ------------ ------------ -------------
Diluted (loss)/earnings per share
From continuing operations 7 (0.6)p (1.6)p (2.1)p
From discontinued operations 0.0p 3.0p 2.3p
------------ ------------ -------------
From loss for the period (0.6)p 1.4p 0.2p
--------------------------------------------- ------ ------------ ------------ -------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2018
6 months 6 months Year ended
to 30 June to 30 June 31 December
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
--------------------------------------------------- ------------ ------------ -------------
Profit/(Loss) for the financial year (724) 1,693 284
Other comprehensive income - items that
may be reclassified subsequently to profit
or loss:
Exchange differences on translation of
overseas operations
- continuing operations (18) (147) (92)
- discontinued operations 3 (129) (176)
Recycle translation reserve for discontinued
operations - (5,077) (5,077)
Total loss for the period attributable
to owners of the parent (739) (3,660) (5,061)
--------------------------------------------------- ------------ ------------ -------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the half year ended 30 June 2018
Capital
Ordinary Share redemption Merger Translation Accumulated
shares premium reserve reserve reserve losses Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
At 1 January 2018 3,115 6,800 617 29,778 (139) (46,236) (6,065)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Retained loss for
the period - - - - - (727) (727)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Exchange differences
on translation of
overseas operations - - - - (15) - (15)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Total comprehensive
income/expense for
the period - - - - (15) (727) (742)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
At 30 June 2018 3,115 6,800 617 29,778 (154) (46,963) (6,807)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
At 1 January 2017 3,115 6,800 617 32,448 5,206 (49,218) (1,032)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Share based payments:
Value
of employee services - - - - - 24 24
Transaction with
owners - - - - - 24 24
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Retained profit
for the period - - - - - 1,693 1,693
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Recycle translation
reserve for discontinued
operations - - - - (5,077) - (5,077)
Exchange differences
on translation of
overseas operations - - - - (276) - (276)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Total comprehensive
income/expense for
the period - - - - (5,353) 1,693 (3,660)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
At 30 June 2017 3,115 6,800 617 32,448 (147) (47,501) (4,668)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
At 1 January 2017 3,115 6,800 617 32,448 5,206 (49,218) (1,032)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Share based payments:
Value
of employee services - - - - - 28 28
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Transaction with
owners - - - - - 28 28
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Retained profit
for the period - - - - - 284 284
Transfer - - - (2,670) - 2,670 -
Recycle translation
reserve for discontinued
operations - - - - (5,077) - (5,077)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Exchange differences
on translation of
overseas operations - - - - (268) - (268)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
Total comprehensive
income/expense for
the period - - - (2,670) (5,345) 2,982 (5,033)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
At 31 December 2017 3,115 6,800 617 29,778 (139) (46,236) (6,065)
--------------------------- --------- --------- ------------- ---------- ------------- ------------ ---------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2018
30 June 30 June 31 December
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
Notes GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 6,202 7,631 6,941
Property, plant and equipment 232 357 285
Deferred tax assets - - -
------------ ------------ ------------
6,434 7,991 7,226
------------ ------------ ------------
Current assets
Inventories 220 302 225
Trade and other receivables 2,774 4,897 3,729
Current tax assets 18 476 5
Cash and cash equivalents 1,275 1,491 1,862
------------ ------------ ------------
4,287 7,166 5,821
Liabilities
Current liabilities
Financial liabilities - borrowings 1,288 2,057 1,613
Trade and other payables 8 4,646 5,067 5,588
Current tax liabilities - - -
Provisions for other liabilities
and charges 400 754 400
------------ ------------ ------------
6,334 7,878 7,601
------------ ------------ ------------
Net current liabilities (2,047) (712) (1,780)
------------ ------------ ------------
Non-current liabilities
Financial liabilities - borrowings 10,500 10,500 10,500
Deferred tax liabilities 527 1,045 644
Provisions for other liabilities
and charges 167 402 367
------------ ------------ ------------
11,194 11,947 11,511
------------ ------------ ------------
Net assets (6,807) (4,668) (6,065)
------------------------------------ ------ ------------ ------------ ------------
Equity attributable to owners of
the parent
Ordinary shares 3,115 3,115 3,115
Share premium account 6,800 6,800 6,800
Capital redemption reserve 617 617 617
Merger reserve 29,778 32,448 29,778
Translation reserve (154) (147) (139)
Retained earnings (46,963) (47,501) (46,236)
------------ ------------ ------------
Total equity (6,807) (4,668) (6,065)
------------------------------------ ------ ------------ ------------ ------------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the half year ended 30 June 2018
6 months 6 months Year ended
to 30 June to 30 June 31 December
2018 2017 2017
(Unaudited) (Unaudited) (Audited)
Notes GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from/(used in) operations 9 291 (6,308) (2,761)
Interest paid (152) (188) (348)
Taxation (paid)/received (13) - 528
------------ ------------ -------------
Net cash from operating activities 126 (6,496) (2,581)
------------ ------------ -------------
Cash flows from investing activities
Interest received 3 - 47
Proceeds from sale of property, plant
and equipment - 510 510
Proceeds from sale of intangibles - 10,261 7,493
(Purchase)/proceeds from sale of property,
plant and equipment (19) 392 (107)
Expenditure on capitalised development
costs (364) (384) (798)
Net cash (used in)/generated from investing
activities (380) 10,779 7,145
------------ ------------ -------------
Cash flows from financing activities
Net bank loans repaid - (4,030) (3,500)
Net cash used in financing activities - (4,030) (3,500)
------------ ------------ -------------
Net (decrease)/increase in cash and
cash equivalents and overdrafts (254) 253 1,064
Effect of foreign exchange rate changes (8) (276) (272)
------------ ------------ -------------
Cash and cash equivalents and overdrafts
at 1 January 1,249 457 457
Cash and cash equivalents and overdrafts
at period end 987 434 1,249
------------ ------------ -------------
Net debt comprises:
Cash and cash equivalents and overdrafts 987 434 1,249
Borrowings (11,500) (11,500) (11,500)
------------ ------------ -------------
Net debt at period end (10,513) (11,066) (10,251)
--------------------------------------------- ------ ------------ ------------ -------------
The cash and cash equivalents and overdrafts balance comprise credit balances of GBP1,275,000 (2017: GBP1,491,000) which have been set off against debit balances of GBP288,000 (2017: GBP1,063,000).
NOTES TO THE FINANCIAL STATEMENTS
for the half year ended 30 June 2018
1. GENERAL INFORMATION
The Pebble Beach Systems Group is a leading global software business specialising in solutions for playout automation and content, serving customers in the broadcast markets.
The Company is a public limited company and is quoted on the Alternative Investment Market (AIM) of the London stock exchange. The Company is incorporated and domiciled in the UK. The address of its registered office is 12 Horizon Business Village, 1 Brooklands Road, Weybridge, Surrey, KT13 0TJ.
The registered number of the Company is 04082188.
This half year results announcement was approved on 24 August 2018.
2. BASIS OF PREPARATION
The Group financial statements have been prepared on a going concern basis in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS), IFRIC interpretations and the Company Act 2006 applicable to companies reporting under IFRS.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the Group financial statements are disclosed in note 4 of the Group financial statements.
During the current reporting period IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers became effective. IFRS 9 did not impact the net assets of the Group. IFRS 15 has not had a material impact on the net assets of the Group and the revenue for 2017 has not been re-stated. In addition, standards or amendments issued but not yet effective are not expected to have a material impact on the net assets of the Group.
Going Concern
The directors are required to make an assessment of the Group's ability to continue to trade as a going concern.
The Group has prepared forecasts which indicate that it is able to meet its ongoing banking covenants and debt reduction schedule.
We have a strong order book and pipeline which underpin our third and fourth quarter revenue.
The Board remains confident about the future prospects for the Group and have concluded that it is appropriate to prepare the Group interim financial statements on a going concern basis.
3. ACCOUNTING POLICIES
The accounting policies applied are consistent with those of the annual report and financial statements for the year ended 31 December 2017, as described in those annual report and financial statements.
Exceptional items are disclosed and described separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the Group. They are material items of income or expense that have been shown separately due to the significance of their nature or amount.
Taxes on income in the half year periods are accrued using the tax rate that would be applicable to expected total annual earnings on a country by country basis.
4. SEGMENTAL REPORTING
The Group's internal organisational and management structure and its system of internal financial reporting to the Board of Directors comprise of Pebble Beach Systems Limited and Central costs. The chief operating decision-maker has been identified as the Board.
The Board reviews the Group's internal financial reporting in order to assess performance and allocate resources. Management have therefore determined that the operating segments for the Group will be based on these reports.
The Pebble Beach Systems Limited business is responsible for the sales and marketing of all Group software products and services.
The table below shows the analysis of Group external revenue and operating profit from continuing operations by business segment.
Pebble Central Total
Beach Systems
GBP'000 GBP'000 GBP'000
----------------------------------------- --------------- -------- --------
6 months to 30 June 2018 (unaudited)
Broadcast 3,748 - 3,748
Total revenue 3,748 - 3,748
--------------- -------- --------
Adjusted operating profit/(loss) 758 (199) 559
Depreciation (65) - (65)
Amortisation and impairment of acquired
intangibles (704) - (704)
Amortisation of capitalised development
costs (400) - (400)
Non-recurring items (167) - (167)
Exchange (losses)/gains 26 - 26
Finance costs - (152) (152)
Finance income 2 1 3
Loss before taxation (550) (350) (900)
Taxation 117 - 117
Loss for the period being attributable
to owners of the parent (433) (350) (783)
----------------------------------------- --------------- -------- --------
6 months to 30 June 2017 (unaudited)
Broadcast 4,554 - 10,879
Total revenue 4,554 - 10,879
--------------- -------- --------
Adjusted operating profit/(loss) 213 (1,213) (1,000)
Depreciation (77) - (77)
Amortisation and impairment of acquired
intangibles (704) - (704)
Amortisation of capitalised development
costs (265) - (265)
Non-recurring items - - -
Exchange (losses)/gains 42 - 42
Finance costs (1) (178) (179)
Finance income 1 1 2
Loss before taxation (791) (1,390) (2,181)
Taxation 164 - 164
Loss for the period being attributable
to owners of the parent (627) (1,390) (2,017)
----------------------------------------- --------------- -------- --------
Year to 31 December 2017 (audited)
Broadcast 10,320 - 10.320
Total revenue 10.320 - 10,320
--------------- -------- --------
Adjusted operating profit/(loss) 1,772 (1,272) 500
Depreciation (157) (30) (187)
Amortisation and impairment of acquired
intangibles (1,419) - (1,419)
Amortisation of capitalised development
costs (655) - (655)
Non-recurring items (113) (399) (512)
Exchange (losses)/gains (95) - (95)
Finance costs - (339) (339)
Finance income 73 (69) 4
Loss before taxation (594) (2,109) (2,703)
Taxation 511 (416) 95
Loss for the year being attributable
to owners of the parent (83) (2,525) (2,608)
----------------------------------------- --------------- -------- --------
The GBP167k non-recurring item in the period ended 30 June 2018 relates to the redundancy costs incurred in January 2018 as part of the Pebble Beach Ltd restructuring.
Geographic external revenue analysis
The revenue analysis in the table below is based on the geographical location of the customer for continuing operations of the business.
6 months 6 months Year ended
to 30 to 30 31 December
June 2018 June 2017 2017
Total Total Total
GBP'000 GBP'000 GBP'000
---------------- ----------- ----------- -------------
By market
UK & Europe 1,589 2,035 4,655
North America 251 1,239 1,772
Latin America 242 65 357
Middle East
and Africa 1,608 921 2,811
Asia / Pacific 58 294 725
3,748 4,554 10,320
---------------- ----------- ----------- -------------
Net assets
The table below summarises the net assets of the Group by division. Balance sheet reporting is disclosed by the divisional assets and liabilities of the Group as this is consistent with the presentation of internal information provided to the Executive Management Board and the Board of Directors.
6 months 6 months Year ended
to 30 June to 30 June 31 December
2018 2017 2017
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
---------------------- ------------ ------------ -------------
By division:
Pebble Beach Systems 6,360 9,013 8,104
Central (13,167) (13,681) (14,169)
(6,807) (4,668) (6,065)
---------------------- ------------ ------------ -------------
5. INCOME TAX EXPENSE
6 months 6 months Year ended
to 30 June to 30 June 31 December
2018 2017 2017
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ------------ ------------ -------------
Current tax
Foreign Tax - current year 3 - -
Adjustments in respect of prior years - (44) 169
--------------------------------------- ------------ ------------ -------------
Total current tax 3 (44) 169
--------------------------------------- ------------ ------------ -------------
Deferred tax
UK corporation tax (120) (120) (267)
Impact of change in tax rate - - -
Adjustments in respect of prior years - - 3
--------------------------------------- ------------ ------------ -------------
Total deferred tax (120) (120) (264)
--------------------------------------- ------------ ------------ -------------
Total taxation (117) (164) (95)
--------------------------------------- ------------ ------------ -------------
The UK corporation tax rate decreased from 20 per cent to 19 per cent from 1 April 2017. Changes to the UK corporation tax rates were substantively enacted on 7 September 2016. These include reductions to the main rate to reduce the rate to 17 per cent from 1 April 2020.
Deferred tax has been provided for at the rate of 17 per cent (2017: 17 per cent).
6. DIVIDS
As in previous years, the Board is not declaring an interim dividend. In respect of 2017 there was no final dividend for the year ended 31 December 2017.
7. EARNINGS PER ORDINARY SHARE
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.
For diluted earnings per share the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The dilutive shares are those share options granted to employees where the exercise price is less than the average market price of the company's ordinary shares during the year.
Reconciliations of the earnings and weighted average number of shares used in the calculations are set out below.
Half year ended 30 June Year ended 31 December
2018 2017
Weighted Weighted
average Earnings average Earnings
number per number per
Earnings of shares share Earnings of shares share
GBP000 000s pence GBP000 000s pence
--------------------------------- --------- ------------ ---------- --------- ------------ ----------
Basic and diluted loss
per share
Loss attributable to
continuing operations (783) (0.6)p (2,608) (2.1)p
Profit/(loss) attributable
to discontinued operations 56 0.0p 2,892 2.3p
--------------------------------- --------- ------------ ---------- --------- ------------ ----------
Basic and diluted profit/(loss)
per share (727) 124,477 (0.6)p 284 124,292 0.2p
--------------------------------- --------- ------------ ---------- --------- ------------ ----------
Half year ended 30 June
2017
Weighted
average Earnings
number per
Earnings of shares share
GBP000 000s pence
--------------------------------- --------- ------------ ----------
Basic and diluted loss
per share
Loss attributable to
continuing operations (2,017) (1.6)p
Profit/(loss) attributable
to discontinued operations 3,710 3.0p
--------------------------------- --------- ------------ ----------
Basic and diluted profit/(loss)
per share 1,693 123,977 1.4p
--------------------------------- --------- ------------ ----------
Potential ordinary shares are non-dilutive in the current and prior years as they would decrease the loss per share from continuing operations. Accordingly, there is no difference between basic and diluted EPS.
8. TRADE AND OTHER PAYABLES
6 months 6 months Year ended
to 30 June to 30 June 31 December
2018 2017 2017
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ------------ ------------ -------------
Payments received on account 2,522 2,251 2,625
Trade payables 646 942 861
Accruals 1,146 1,494 1,619
Other taxes and social security costs 332 380 483
4,264 5,067 5,588
--------------------------------------- ------------ ------------ -------------
Net current assets, excluding payments received on account, are GBP0.5 million.
9. CASH FLOW GENERATED FROM OPERATING ACTIVITIES
Reconciliation of loss before taxation to net cash flows from operating activities.
6 months 6 months Year ended
to 30 June to 30 June 31 December
2018 2017 2017
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
----------------------------------------------- ------------ ------------ -------------
Loss before tax - continuing operations (900) (2,017) (2,703)
Profit/(loss) before tax - discontinued
operations 56 (1,367) (2,847)
----------------------------------------------- ------------ ------------ -------------
Total loss before tax (844) (3,384) (5,550)
Depreciation of property, plant and equipment 65 12 187
Profit on disposal of property, plant
and equipment - (171) (110)
Loss on disposal of VCS - - 1,335
Amortisation and impairment of development
costs 400 265 856
Amortisation and impairment of acquired
intangibles 703 704 1,418
Share-based payment expense - 24 28
Finance income (3) 510 (47)
Finance costs 152 180 348
Decrease/(increase) in inventories 5 (96) (19)
Decrease/(increase) in trade and other
receivables 955 600 2,489
Increase/(decrease) in trade and other
payables (942) (4,984) (3,345)
Increase/(decrease) in provisions (200) 32 (351)
----------------------------------------------- ------------ ------------ -------------
Net cash generated from operating activities 291 (6,308) (2,761)
----------------------------------------------- ------------ ------------ -------------
Ends
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 BIGDISDDBGIX
(END) Dow Jones Newswires
August 24, 2018 02:00 ET (06:00 GMT)
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