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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Property Franchise Group Plc (the) | LSE:TPFG | London | Ordinary Share | GB00BH0WFH67 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-3.00 | -0.87% | 342.00 | 335.00 | 345.00 | 345.00 | 340.00 | 345.00 | 94,568 | 16:35:01 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Real Estate Agents & Mgrs | 27.16M | 7.23M | 0.2256 | 15.07 | 108.94M |
TIDMTPFG
RNS Number : 7344L
Property Franchise Group PLC (The)
10 September 2019
10 September 2019
THE PROPERTY FRANCHISE GROUP PLC
(the "Company" or the "Group")
Interim Results for the six months ended 30 June 2019
Profit up 6% and interim dividend up 8%
The Property Franchise Group, one of the UK's largest property franchises, today announces its interim results for the period ended 30 June 2019.
Financial Highlights
-- Revenue of GBP5.5m (H1 2018: GBP5.5m), in line with expectations -- Management Service Fees ("royalties") increased by 5% to GBP4.6m (H1 2018: GBP4.4m) -- Operating margin increased to 37% (H1 2018: 35%) -- EBITDA increased by 5% to GBP2.4m (H1 2018: GBP2.3m) -- Profit before tax increased 6% to GBP2.0m (H1 2018: GBP1.9m) -- Strong balance sheet with a net cash position of GBP2.8m (H1 2018: GBP0.5m) -- Interim dividend increased by 8% to 2.6p per share (H1 2018: 2.4p)
Operational Highlights
-- Tenanted managed properties increased 6% to 56,000 (H1 2018: 53,000)
-- 17 acquisitions by franchisees completed year to date, generating annualised Management Services Fees of GBP0.2m
-- 369 trading offices (H1 2018: 377) -- 8 new franchisees recruited and 9 new offices opened
-- Group remains heavily weighted towards lettings, accounting for 70% of Management Service Fees (H1 2018: 69%)
Ian Wilson, Chief Executive Officer of The Property Franchise Group, commented:
"We have delivered another strong set of results, with progress in each of our six brands, which have all grown our most important revenue stream, franchise management services fees over the same period last year. Our profit has also grown, driven by the health of our franchisees' businesses and prudent cost management.
"Historically, the Group experiences stronger trading in the second half year, associated with heightened lettings activity in the period from June to September. At this stage we believe that this pattern will be maintained. Our strong balance sheet and our continued confidence in the underlying strength of our business model means that we are pleased to be increasing the interim dividend by 8% to 2.6p in line with our progressive dividend policy.
"Thanks to our franchise business model, diverse brand offering, lettings weighting and high levels of cash generation, resulting in a strong balance sheet, we are well-positioned to outperform our competitors, increase market share and deliver value for all our stakeholders in the immediate and longer term."
For further information, please contact:
The Property Franchise Group PLC Ian Wilson, Chief Executive Officer David Raggett, Chief Financial Officer 01202 292829 Cenkos Securities plc Max Hartley, Callum Davidson (Nominated Adviser) Julian Morse (Sales) 0207 397 8900 Alma PR Susie Hudson Rebecca Sanders-Hewett Jessica Joynson 0203 405 0205
Chief Executive's Review
The Property Franchise Group has continued to outperform with all of our six brands' franchisee networks achieving revenue growth over the period, despite challenging market conditions.
Our franchisees added 1,175 tenanted managed properties in the reporting period through our assisted acquisitions programme. These additions, alongside the continued organic growth of the portfolio leaves the Group managing 56,000 properties, as at the period end.
Driving continued growth in our traditional brands
For our traditional brands the growth was driven largely by a robust increase in lettings management service fees (MSF), which outweighed the market weakness faced in sales. We were pleased to see the Group's strategic weighting towards lettings showing its resilience as expected during this time of uncertainty.
Our franchisees continue to invest in our centralised digital marketing and, in the reporting period just pay-per-click delivered 29,490 new business leads compared to 30,474 leads in the whole of 2018. Our capability in this area is improving all the time which means that our traditional high street agents can compete with the perceived threat from online and hybrid competitors.
EweMove
As well as also increasing its lettings revenue our hybrid brand EweMove demonstrated that its unique, highly customer centric offering can defy the challenging sales market, as its sales revenue increased. This was through existing franchisees achieving higher sales conversion rates.
EweMove has 115 franchise territories trading at the end of the reporting period which is broadly flat against the prior year. However property listings have increased to 3,173 in H1 2019 (H1 2018: 3,062), which was pleasing against the backdrop of a falling market. EweMove has improved its cash generation year on year, and tight cost control has delivered a corresponding improvement in profitability. We are on track to materially improve on the 2018 result for the full year.
Having examined the evidence, experienced estate agents initially outperform inexperienced franchise recruits from other sectors, but only in the first two years trading as a EweMove franchisee. Consequently, we have resumed recruiting non-agents as franchisees at EweMove provided that we are satisfied they have transferable sales skills and access to sufficient working capital during the build-up period.
The importance of the franchise business model
The period has been another example of the importance of our business model in allowing us to support franchisees through new regulation and wider macro-economic challenges.
The Government's tenant fee ban took effect on 1 June, with these results reflecting one month's impact of the ban. Pleasingly, post period we have seen July's letting results exceed our expectations, with evidence of pent up tenant demand feeding through. We continue to work closely with our franchisees on mitigating the effects of the ban.
The Government has proposed the creation of a unitary regulatory body for letting agents and the requirement for all practitioners to submit to a test of professional competence. Our Group is particularly well positioned to navigate hurdles such as these. Our founding business, Martin & Co, built its reputation by recruiting franchisees from disparate backgrounds and instilling, through its training programme, all of the skills and knowledge they needed to practise as agents. We have a strong heritage in this capability and are well placed to continue supporting our franchisees through increased regulatory challenges.
Outlook
Whilst we are cognisant of the UK market conditions and the challenges we face, our franchisees are proving highly resilient, taking up the opportunities to outpace their competitors afforded through our centralised digital marketing and assisted acquisitions programme.
As is appropriate, we are consciously risk-adverse at this point in the cycle and continue to manage our operating margin in order to further drive profitability. Notwithstanding this, our strong net-cash position and available bank facility means that we are in an excellent position to capitalise on opportunities in the remainder of 2019 and into 2020. The Board remains confident of delivering on market expectations for the full year.
Ian Wilson, Chief Executive Officer
Financial Review
Revenue
Revenue for the six months ended 30 June 2019 was GBP5.5m (H1 2018: GBP5.5m), in line with expectations. This is before the amortisation of assisted acquisition support provided to franchisees to incentivise the purchase of portfolios of managed properties.
Underlying this was a strong performance from our network, outperforming the market in sales and lettings. Management Service Fees ("MSF") grew by 5% to GBP4.6m accounting for 85% of total revenue, up from 80% this time last year.
Traditional Brands' MSF
Overall, our traditional brands' network continues to prosper. In the traditional brands, lettings MSF grew by 6% to GBP2.85m and sales MSF declined by 9% to GBP0.67m in the six months ended 30 June 2019 compared to the same period of 2018. Despite the falling number of lettings instructions and the implementation of the tenant fee ban on 1 June 2019, our network is growing revenue, primarily due to their focus on acquiring portfolios of managed properties with our assistance. Whilst it is disappointing to see sales MSF decline, the weaknesses of the housing market are well documented and 3% of the reduction is due to us reducing the number of CJ Hole offices. We continue to pursue digital marketing initiatives aimed at continuing to outperform the market.
EweMove's MSF
EweMove franchisees pay a monthly licence fee and a completion fee per transaction. The total of the licence fees and completion fees for the six months ended 30 June 2019 was GBP1.06m (H1 2018: GBP0.92m), a 15% increase on the same period of 2018. We include these licence fees and completion fees within MSF.
EweMove grew house sales completions in the first six months of 2019 by 16% compared to the same period last year through existing franchisees converting more of the fewer opportunities into sales. Lettings completions in the first six months of 2019 increased by 12% compared to the same period last year.
Franchise Sales
Franchise sales income was GBP0.1m (H1 2018: GBP0.2m). New recruits in the first half of this year were 8 compared to 16 for the comparative period. All have joined EweMove so far this year of which 63% are experienced estate agents.
Other
Other income was GBP0.74m (H1 2018: GBP0.89m), down 17% on the six months ended 30 June 2018 mainly due to reorganisations in the network generating fewer and lower fees so far this year.
Assisted Acquisitions
In the year to end of August 19, franchisees completed on 17 Assisted Acquisitions with a total deal value of GBP3.1m (2018 YTD: 20 Assisted Acquisitions with a total deal value of GBP3.2m). The total number of managed properties acquired was 2,000 (2018 YTD: 2,400). Based on their historic results, these acquisitions added GBP2.4m to annualised network revenue and increased annualised recurring MSF by GBP0.2m (2018 YTD: GBP2.3m of annualised network revenue and additional annualised recurring MSF of GBP0.2m).
Administrative expenses
Administrative expenses have been reduced by GBP0.15m to GBP2.85m due to targeted cost control in what we knew would be a challenging year.
EBITDA
The Group's EBITDA was GBP2.4m (H1 2018: GBP2.3m), an increase of 5% over the comparative period. There were no exceptional items or share-based payment charges in the first half of 2019 nor the comparative period.
Operating profit
Operating profit increased 5% to GBP2.0m (H1 2018 GBP1.9m) and operating margin was 37% (H1 2018: 35%) helped by the reduction in administrative expenses.
Earnings per share
Earnings per share for the six months ended 30 June 2019 was 6.3p (H1 2018: 5.9p). The income attributable to owners was GBP1.6m (H1 2018: GBP1.5m).
Profit before income tax
Profit before tax was GBP2.0m (2018: GBP1.9m), an increase of 6%.
Dividends
The Board has pursued a progressive dividend policy since the IPO. Once again, the Company has increased the interim dividend by 8% over last year reflecting the increase in profitability and reconfirming its commitment to that policy. The Company intends to make an interim dividend payment of 2.6p per share on 1 October 2019 to shareholders on the register on 20 September 2019, being the record date. The ex-dividend date will be 19 September 2019.
Cash flow
At an operational level, the Group is highly cash generative and its cash flow has annuity like characteristics. The net cash inflow from operating activities in the first six months of 2019 increased 11% to GBP2.2m (H1 2018: GBP2.0m).
The payments of assisted acquisitions support amounted to GBP0.1m (H1 2018: GBP0.1m) and are explained by incentives targeted at encouraging franchisees to acquire portfolios of tenanted managed properties.
In the first six months of 2019 the Group made bank loan repayments of GBP0.45m (H1 2018: GBP0.45m) and paid a final dividend of GBP1.5m for the year ended 31 December 2018 (H1 2018: GBP1.4m for the year ended 31 December 2017).
Overall cash balances increased by GBP1.3m to GBP3.9m (H1 2018: GBP2.6m).
Liquidity
The Group had a net cash balance of GBP2.8m at the end of the period (H1 2018: net cash GBP0.5m).
The Group had undrawn bank loan facilities of GBP3.8m at 30 June 2019 (30 June 2018: GBP3.0m). These are due for renewal in October 2019 and arrangements are at an advanced stage. Their renewal does not impact the repayment terms for the two existing loans.
Financial position
The Group continues to be strongly cash generative with a significantly enhanced net cash position affording it increasing headroom in its dividend policy as it continues to pursue an attractive yield for investors. At the same time our strong balance sheet enables us to continue to fulfil the acquisition element of our strategic plan and to pursue the fulfilment of EweMove's potential.
David Raggett, Chief Financial Officer
THE PROPERTY FRANCHISE GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHSED 30 JUNE 2019
Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 30.06.19 30.06.18 31.12.18 Notes GBP GBP GBP CONTINUING OPERATIONS Revenue 6 5,403,446 5,478,076 11,245,613 Cost of sales (524,140) (539,503) (1,080,271) ------------ ------------ ------------ GROSS PROFIT 4,879,306 4,938,573 10,165,342 Administrative expenses (2,846,388) (3,000,645) (5,783,482) Share-based payments charge - - (49,857) ------------ ------------ ------------ OPERATING PROFIT 2,032,918 1,937,928 4,332,003 Finance income 4,235 5,256 8,968 Finance costs (24,432) (38,945) (71,494) ------------ PROFIT BEFORE INCOME TAX 2,012,721 1,904,239 4,269,477 Tax 7 (379,607) (390,882) (847,041) ------------ ------------ ------------ PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS 1,633,114 1,513,357 3,422,436 ============ ============ ============ Earnings per share attributable to owners 8 6.3p 5.9p 13.3p ============ ============ ============ Diluted earnings per share attributable to owners 8 6.3p 5.9p 13.3p ============ ============ ============
THE PROPERTY FRANCHISE GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2019
Unaudited Unaudited Audited As at As at As at 30.06.19 30.06.18 31.12.18 Notes GBP GBP GBP ASSETS NON-CURRENT ASSETS Intangible assets 10 15,033,021 15,618,215 15,324,755 Property, plant and equipment 88,549 108,581 103,584 Prepaid assisted acquisitions support 483,325 341,911 453,836 15,604,895 16,068,707 15,882,175 ----------- ----------- ----------- CURRENT ASSETS Trade and other receivables 11 1,189,127 1,095,882 1,096,274 Cash and cash equivalents 3,917,335 2,595,620 3,857,988 ----------- ----------- 5,106,462 3,691,502 4,954,262 ----------- ----------- ----------- TOTAL ASSETS 20,711,357 19,760,209 20,836,437 =========== =========== =========== EQUITY SHAREHOLDERS' EQUITY Share capital 12 258,228 258,228 258,228 Share premium 4,039,800 4,039,800 4,039,800 Other reserves 13 2,983,861 2,934,004 2,983,861 Retained earnings 8,526,709 7,153,627 8,442,960 ----------- TOTAL EQUITY 15,808,598 14,385,659 15,724,849 ----------- ----------- ----------- LIABILITIES NON-CURRENT LIABILITIES Borrowings 14 500,000 1,150,000 700,000 Deferred tax 1,327,888 1,423,288 1,372,196 ----------- 1,827,888 2,573,288 2,072,196 ----------- ----------- ----------- CURRENT LIABILITIES Borrowings 14 650,000 900,000 900,000 Trade and other payables 15 1,534,323 1,370,152 1,476,819 Tax payable 890,548 531,110 662,573 ----------- 3,074,871 2,801,262 3,039,392 ----------- ----------- ----------- TOTAL LIABILITIES 4,902,759 5,374,550 5,111,588 ----------- ----------- ----------- TOTAL EQUITY AND LIABILITIES 20,711,357 19,760,209 20,836,437 =========== =========== ===========
THE PROPERTY FRANCHISE GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHSED 30 JUNE 2019
Called up Retained Share Other reserves Total equity share capital earnings premium (note 13) (note 12) GBP GBP GBP GBP GBP Balance at 1 January 2018 (audited) 258,228 7,034,699 4,039,800 2,934,004 14,266,731 -------------------------------------- -------- ------------ ---------- --------------- ------------- Profit and total comprehensive income - 1,513,357 - - 1,513,357 Dividends paid (note 9) - (1,394,429) - - (1,394,429) -------------------------------------- -------- ------------ ---------- --------------- ------------- Total transactions with owners - (1,394,429) - - (1,394,429) -------------------------------------- -------- ------------ ---------- --------------- ------------- Balance at 30 June 2018 (unaudited) 258,228 7,153,627 4,039,800 2,934,004 14,385,659 -------------------------------------- -------- ------------ ---------- --------------- ------------- Profit and total comprehensive income - 1,909,079 - - 1,909,079 -------------------------------------- -------- ------------ ---------- --------------- ------------- Dividends paid (note 9) - (619,746) - - (619,746) Share-based payments charge - - - 49,857 49,857 -------------------------------------- -------- ------------ ---------- --------------- ------------- Total transactions with owners - (619,746) - 49,857 (569,889) -------------------------------------- -------- ------------ ---------- --------------- ------------- Balance at 31 December 2018 (audited) 258,228 8,442,960 4,039,800 2,983,861 15,724,849 -------------------------------------- -------- ------------ ---------- --------------- ------------- Profit and total comprehensive income - 1,633,114 - - 1,633,114 -------------------------------------- -------- ------------ ---------- --------------- ------------- Dividends paid (note 9) - (1,549,365) - - (1,549,365) Total transactions with owners - (1,549,365) - - (1,549,365) -------------------------------------- -------- ------------ ---------- --------------- ------------- Balance at 30 June 2019 (unaudited) 258,228 8,526,709 4,039,800 2,983,861 15,808,598 ====================================== ======== ============ ========== =============== =============
THE PROPERTY FRANCHISE GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHSED 30 JUNE 2019
Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 30.06.19 30.06.18 31.12.18 GBP GBP GBP Cash flows from operating activities Profit before income tax 2,012,721 1,904,239 4,269,477 Depreciation and amortisation charges 384,193 355,228 714,440 Share-based payments charge - - 49,857 Loss on disposal of intangible assets - 1,749 17,989 Finance costs 24,432 38,945 71,494 Finance income (4,235) (5,256) (8,968) ------------ ------------ ------------ Operating cash flow before changes in working capital 2,417,111 2,294,905 5,114,289 (Increase) / decrease in trade and other receivables (92,853) 21,455 21,062 Increase / (decrease) in trade and other payables 59,642 70,656 178,998 ------------ ------------ ------------ Cash generated from operations 2,383,900 2,387,016 5,314,349 Interest paid (26,568) (39,086) (75,346) Tax paid (195,943) (395,991) (771,779) Net cash generated from operations 2,161,389 1,951,939 4,467,224 ------------ ------------ ------------ Cash flows from investing activities Purchase of intangible assets - (10,000) (20,000) Purchase of tangible assets (2,053) (15,042) (30,505) Payment of assisted acquisitions support (104,859) (86,630) (248,050) Interest received 4,235 5,256 8,968 Net cash used in investing activities (102,677) (106,416) (289,587) ------------ ------------ ------------ Cash flows from financing activities Repayment of borrowings (450,000) (450,000) (900,000) Equity dividends paid (note 9) (1,549,365) (1,394,429) (2,014,175) Net cash used in financing activities (1,999,365) (1,844,429) (2,914,175) ------------ ------------ ------------ Increase in cash and cash equivalents 59,347 1,094 1,263,462 Cash and cash equivalents at the beginning of the period 3,857,988 2,594,526 2,594,526 Cash and cash equivalents at end of the period 3,917,335 2,595,620 3,857,988 ============ ============ ============
THE PROPERTY FRANCHISE GROUP PLC
NOTES TO THE INTERIM RESULTS
FOR THE SIX MONTHSED 30 JUNE 2019
1. GENERAL INFORMATION
The principal activity of The Property Franchise Group plc and its subsidiaries is that of a UK residential property franchise business. The Group operates in the UK. The company is a public limited company incorporated and domiciled in the UK. The address of its head office and registered office is 2 St Stephen's Court, St Stephen's Road, Bournemouth, Dorset, UK.
2. GOING CONCERN
The interim financial information has been prepared on the basis that the Group is a going concern.
When assessing the foreseeable future the directors have looked at a period of 12 months from the date of approval of the interim financial information. The directors have a reasonable expectation that the Group has adequate resources to continue to trade for the foreseeable future and, therefore, consider it appropriate to prepare the Group's interim financial information on a going concern basis.
3. BASIS OF PREPARATION
The consolidated interim financial information for the six months ended 30 June 2019 was approved by the Board and authorised for issue on 10 September 2019. The results for 30 June 2019 and 30 June 2018 are unaudited. The disclosed figures are not statutory accounts in terms of Section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2018 on which the auditors gave an audit report which was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies. The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union.
This interim report has been prepared on a basis consistent with the accounting policies expected to be applied for the year ending 31 December 2019, and uses the same accounting policies and methods of computation applied for the year ended 31 December 2018. IFRS 16 Leases applies to the financial year beginning 1 January 2019 but has not been applied in this interim report because the impact of IFRS 16 is immaterial to the Group's interim financial information.
IFRS 16 requires that almost all leases will be brought onto lessees' balance sheets under a single model (except leases of less than 12 months and leases of low-value assets), eliminating the distinction between operating and finance leases. Currently, the Group holds some non-cancellable operating leases but no finance leases. The non-cancellable operating lease commitments meet the definition of a lease under IFRS 16. Thus, the Group will recognise a right-of-use asset and a corresponding liability in respect of all these leases in its year-end accounts in the order of GBP0.05m. The charge to be recognised in the consolidated statement of comprehensive income is estimated to be GBP0.05m for 2019, comprising depreciation and interest and will replace the operating lease rentals which would have been charged had IFRS 16 not been applied.
4. BASIS OF CONSOLIDATION
The Group's interim financial information includes those of the parent company and its subsidiaries, drawn up to 30 June 2019. Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. When necessary amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies.
5. SEGMENTAL REPORTING
The board of Directors, as the chief operating decision-making body, review financial information for and make decisions about the Group's overall franchising business and have identified a single operating segment, that of property franchising.
6. REVENUE
The Directors believe there to be three material income streams relevant to property franchising which are split as follows:
Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 30.06.19 30.06.18 31.12.18 GBP GBP GBP Management service fee 4,641,386 4,406,284 9,464,388 Franchise sales 79,842 212,265 289,808 Other 737,469 885,630 1,552,909 ----------- ----------- ----------- 5,458,697 5,504,179 11,307,105 Prepaid assisted acquisitions support release (55,251) (26,103) (61,492) 5,403,446 5,478,076 11,245,613 =========== =========== ===========
All revenue is earned in the UK and no customer represents greater than 10 per cent of total revenue in the periods reported.
7. TAXATION
The underlying tax charge is based on the expected effective tax rate for the full year to December 2019. The majority of the tax arises from applying this effective tax rate to the profit on ordinary activities.
8. EARNINGS PER SHARE
Earnings per share is calculated by dividing the profit for the financial period by the weighted average number of shares during the period.
Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 30.06.19 30.06.18 31.12.18 Basic earnings per share Weighted average number of shares 25,822,750 25,822,750 25,822,750 ----------- ------------ --------------- Profit for the period (GBP) 1,633,114 1,513,357 3,422,436 ----------- ------------ ------ ----------- Earnings per share (pence) 6.3p 5.9p 13.3p ----------- ------------ --------------- Unaudited Unaudited Audited 6 Months 6 Months 12 Months Ended Ended Ended 30.06.19 30.06.18 31.12.18 Diluted earnings per share Weighted average number of shares 25,822,750 25,822,750 25,822,750 Dilutive effect of share options on ordinary shares - 349 - 25,822,750 25,823,099 25,822,750 ----------- ----------- ----------- Diluted earnings per share (pence) 6.3p 5.9p 13.3p ----------- ----------- ----------- 9. DIVIDS Unaudited Unaudited Audited As at As at As at 30.06.19 30.06.18 31.12.18 GBP GBP GBP Dividends (ordinary share of GBP0.01 each) 1,549,365 1,394,429 2,014,175 Dividend per share paid 6.0p 5.4p 7.8p
10. INTANGIBLE ASSETS
Master Brands Technology Customer Goodwill Total Franchise Lists Agreement GBP GBP GBP GBP GBP GBP Cost Balance at 1 January 2018 (Audited) 7,803,436 1,972,239 274,210 301,712 7,226,160 17,577,757 Additions - - - 10,000 - 10,000 Disposals - - - (84,205) - (84,205) ---------- ---------- ----------- --------- ---------- ----------- Balance at 30 June 2018 (Unaudited) 7,803,436 1,972,239 274,210 227,507 7,226,160 17,503,552 ========== ========== =========== ========= ========== =========== Additions - - - 10,000 - 10,000 Disposals - - - (22,567) - (22,567) ---------- ---------- ----------- --------- ---------- ----------- Balance at 31 December 2018 (Audited) 7,803,436 1,972,239 274,210 214,940 7,226,160 17,490,985 ========== ========== =========== ========= ========== =========== Additions - - - - - - Disposals - - - - - - ========== ========== =========== ========= ========== =========== Balance at 30 June 2019 (Unaudited) 7,803,436 1,972,239 274,210 214,940 7,226,160 17,490,985 ========== ========== =========== ========= ========== =========== Amortisation Balance at 1 January 2018 (Audited) 1,325,528 88,968 49,118 201,846 - 1,665,460 Charge for period 206,587 33,363 39,518 22,867 - 302,335 Eliminated on disposals - - - (82,454) - (82,454) Balance at 30 June 2018 (Unaudited) 1,532,115 122,331 88,636 142,259 - 1,885,341 Charge for period 206,587 33,363 39,519 10,519 - 289,988 Eliminated on disposals - - - (9,099) - (9,099) ---------- ---------- ----------- --------- ---------- ----------- Balance at 31 December 2018 (Audited) 1,738,702 155,694 128,155 143,679 - 2,166,230 Charge for period 206,587 33,363 39,518 12,266 - 291,734 Disposals - - - - - - ========== ========== =========== ========= ========== =========== Balance at 30 June 2019 (Unaudited) 1,945,289 189,057 167,673 155,945 - 2,457,964 ========== ========== =========== ========= ========== =========== Net book value 30 June 2018 (Unaudited) 6,271,321 1,849,908 185,574 85,252 7,226,160 15,618,215 ============ ========== ======== ======= ========== =========== 31 December 2018 (Audited) 6,064,734 1,816,545 146,055 71,261 7,226,160 15,324,755 ============ ========== ======== ======= ========== ===========
30 June 2019 (Unaudited) 5,858,147 1,783,182 106,537 58,995 7,226,160 15,033,021 ============ ========== ======== ======= ========== ===========
11. TRADE AND OTHER RECEIVABLES
Unaudited Unaudited Audited As at As at As at 30.06.19 30.06.18 31.12.18 GBP GBP GBP Trade receivables 237,304 157,319 113,466 Loans to franchisees 80,227 18,102 36,523 Other receivables 10,113 42,193 8,539 Prepayments and accrued income 861,483 878,268 937,746 1,189,127 1,095,882 1,096,274 ========== ========== ==========
12. CALLED UP SHARE CAPITAL
Unaudited Unaudited Audited As at As at As at 30.06.19 30.06.18 31.12.18 GBP GBP GBP Group 25,822,750 allotted issued and fully paid Ordinary Shares of 1p each 258,228 258,228 258,228 ========== ========== ============
Enterprise Management Incentive ("EMI") Share Option Scheme 2017
During the year ended 31 December 2017 the Company implemented an EMI scheme as part of the remuneration for all staff and granted options over 2,290,000 ordinary shares at an exercise price of GBP0.01 each which included options over 1,500,000 ordinary shares being granted to two Executive Directors.
The options are exercisable after the approval of the financial statements for the year ending 31 December 2019, and subject to meeting an Earnings per Share target.
Enterprise Management Incentive ("EMI") Share Option Scheme 2018
On 1 August 2018 employees including the two Executive Directors with options in the EMI Share Option Scheme 2017 were granted options in a parallel scheme, over the same number of shares, and with the same Earnings per Share target, but these are exercisable one year later, after the approval of the financial statements for the year ending 2020. These participants, therefore, hold two options, one for each Scheme, and are only be able to exercise one of their options. The total number of parallel options granted was 1,965,000.
On 1 August 2018 new employees who did not have options under the 2017 scheme were granted options over 155,000 shares at an exercise price of GBP0.01 each.
13. OTHER RESERVES
Merger Share Based Reserve Payment Reserve Total GBP GBP GBP 1 January 2018 (Audited) 2,796,984 137,020 2,934,004 30 June 2018 2,796,984 137,020 2,934,004 31 December 2018 (Audited) 2,796,984 186,877 2,983,861 30 June 2019 2,796,984 186,877 2,983,861
Merger reserve
The merger reserve relates to the acquisition of Martin & Co (UK) Limited by The Property Franchise Group plc. This did not meet the definition of a business combination and therefore, falls outside of the scope of IFRS 3. This transaction was accounted for in accordance with the principles of merger accounting as set out in Financial Reporting Standard 6 - Acquisitions and Mergers.
Share-based payment reserve
The share-based payments reserve comprises charges made to the income statement in respect of share-based payments and related deferred tax impacts under the Group's equity compensation scheme.
14. BORROWINGS
Unaudited Unaudited Audited As at As at As at 30.06.19 30.06.18 31.12.18 GBP GBP GBP Repayable within 1 year: Bank loan (term loan) 650,000 900,000 900,000 Repayable in more than 1 year: Bank loan (term loan) 500,000 1,150,000 700,000 Bank loans due after more than 1 year are repayable as follows: Between 1 and 2 years 400,000 900,000 400,000 Between 2 and 5 years 100,000 250,000 300,000
The term loan of GBP1.15m (30 June 2018: GBP2.05m) is secured with a fixed and floating charge over the Group's assets and a cross guarantee across all companies in the Group.
The Company has a loan facility of GBP5m and has drawn down two term loans under this facility, referred to below as 'Loan 1' and 'Loan 2'.
Loan 1 - GBP2.5m drawn down on 30 October 2014 and is repayable over 5 years in equal instalments. Interest is charged quarterly on the outstanding amount and the rate is fixed at 4.08%. The amount outstanding at 30 June 2019 was GBP0.25m (30 June 2018: GBP0.75m).
Loan 2 - GBP2m drawn down on 5 September 2016 and is repayable over 5 years in equal instalments. Interest is charged quarterly on the outstanding amount. The interest rate is variable during the term at 2.5% above LIBOR and at 30 June 2019 the rate was 3.3%. The amount outstanding at 30 June 2019 was GBP0.9m (30 June 2018: GBP1.3m).
At 30 June 2019 the unutilised amount of the facility was GBP3.85m (30 June 2018: GBP2.95m).
15. TRADE AND OTHER PAYABLES
Unaudited Unaudited Audited As at As at As at 30.06.19 30.06.18 31.12.18 GBP GBP GBP Trade payables 152,596 183,579 164,181 Other taxes and social security 540,404 526,840 619,119 Other payables 119,545 42,924 28,113 Accruals and deferred income 721,778 616,809 665,406 1,534,323 1,370,152 1,476,819 ========== ========== ==========
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 KKLFBKKFXBBQ
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September 10, 2019 02:01 ET (06:01 GMT)
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