We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Safestyle Uk Plc | LSE:SFE | London | Ordinary Share | JE00BGP63272 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.32 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Manufacturing Industries,nec | 154.32M | -6.51M | -0.0469 | -0.07 | 444.37k |
TIDMSFE
RNS Number : 8831J
Safestyle UK PLC
15 September 2016
15 September 2016
This announcement contains inside information
Safestyle UK plc
Unaudited Interim Results for the six months ended 30 June 2016
Safestyle UK plc (AIM: SFE), the leading UK-focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner market, today announces its interim results for the six months ended 30 June 2016.
Financial and Operational highlights
Unaudited Unaudited % change 6 months ended 6 months ended 30 June 2016 30 June 2015 GBPm GBPm -------------------- ---------------- ---------------- ---------- Revenue 83.5 74.0 +12.8% -------------------- ---------------- ---------------- ---------- Gross profit*** 28.2 25.2 +11.9% -------------------- ---------------- ---------------- ---------- Gross margin %*** 33.7% 34.1% -40bps -------------------- ---------------- ---------------- ---------- EBITDA 10.1 9.3 +8.6% -------------------- ---------------- ---------------- ---------- Underlying EBITDA* 11.1 9.5 +16.8% -------------------- ---------------- ---------------- ---------- PBT 9.5 8.7 +9.2% -------------------- ---------------- ---------------- ---------- Underlying PBT** 10.6 9.0 +17.8% -------------------- ---------------- ---------------- ---------- EPS - Basic 9.4p 9.1p +3.3% -------------------- ---------------- ---------------- ---------- Interim Dividend 3.75p 3.40p +10.3% -------------------- ---------------- ---------------- ----------
* Underlying EBITDA is defined as earnings before interest, tax, depreciation, amortisation and share based payments charges
** Underlying PBT is defined as earnings before taxation and share based payments charges
*** Cost of sales restated to reflect lead generation costs previously stated as other operating expenses
-- Volume of frames installed increased by 5.7% to 149,742 (H1 2015: 141,712) -- Continued growth in market share to 10.0% at 30 June 2016 (End 2015: 9.5%) -- Leads generated from media and on-line marketing grew by 26% to 39,118 (H1 2015: 31,095) -- Average unit sales price up 4.7% to GBP556 (FY 2015: GBP531) -- New sales offices opened in Guildford and Norwich -- Pre-tax operating cash flow of GBP9.8 million (2015: GBP8.7 million)
Commenting on the results, Steve Birmingham, CEO said:
"I am pleased to report that Safestyle UK has delivered another record performance in the first half of 2016 in which our revenue, market share and profit all increased. We have continued to build on the positive momentum generated last year and the Group's cash conversion and balance sheet remain strong. Furthermore, we continue to execute on our strategy of increasing market share and expanding geographically, with new sales branches opened in Guildford and Norwich.
So far in H2 we have seen no change in demand which might be attributed to June's Brexit vote. Order intake since the half year has increased on the previous year, albeit at a lower rate than in the first half due to more challenging comparatives.
We have entered the second half of 2016 in a strong position and the Board remains confident of making further progress and delivering a full year outturn in line with management expectations."
Enquiries:
Safestyle UK plc Tel: 0207 653 9850 Steve Birmingham, Chief Executive Officer Mike Robinson, Chief Financial Officer Zeus Capital (Nominated Adviser & Joint Tel: 0203 829 5000 Broker) Nick How / Dominic King / Andrew Jones Liberum (Joint Broker) Tel: 0203 100 2100 Neil Patel FTI Consulting (Financial PR) Tel: 0203 727 1000 Oliver Winters / Alex Beagley / James safestyle@fticonsulting.com Styles
About Safestyle UK plc
The Group is the leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market. For more information please visit www.safestyleukplc.co.uk and www.safestyle-windows.co.uk.
Chairman's Statement
Summary of Performance
I am pleased to report that Safestyle UK has continued to perform well in the six months ended 30 June 2016.
Revenue was up 12.8% to GBP83.5 million (H1 2015: GBP74.0 million) as we continued to increase our market share in the period to 10.02% (9.46% as at 31 December 2015), according to FENSA installations data. Order intake was up 19.7% and we closed the period with a record half-year order book.
Profit before tax increased by 8.9% to GBP9.5 million (H1 2015: GBP8.8 million), after including an unusually high charge related to LTIP share options granted at the time of the company's IPO in 2013, and exercised during the period, of GBP1.05 million (H1 2015: GBP0.22 million). Underlying EBITDA was up 16.5% at GBP11.1 million. EPS for the period is up marginally to 9.4p, reflecting both the option expense and the increased number of shares in issue as a result of the April 2016 exercise of share options and the October 2015 warrant exercise.
The business continues to convert profit into cash, with H1 2016 cash conversion (the ratio of net cashflow from operating activities before taxation to underlying EBITDA) for the period at 88%, compared with 91% for FY 2015. The Group's balance sheet is robust with cash of GBP23.6 million at 30 June 2016 (GBP16.5 million as at 31 December 2015). The special dividend of GBP5.6 million announced with the 2015 full year results was paid on 11 July 2016 alongside the final dividend of GBP5.6 million.
Interim Dividend
We will pay an interim dividend of 3.75 pence per share, an increase of 10.3%, on 31 October 2016. The record date will be 30 September 2016.
Business Review
The market in which the Group operates contracted by 2.2% by volume in H1 2016 (according to FENSA data), albeit with some recovery in Q2, which we expect will continue in Q3. Our own order intake has been very strong in the first half of the year. The second half has started on plan, with the three new frame colours introduced at the beginning of June being well received and current order intake shows growth in line with our expectations. We remain encouraged by the demand for our conservatory refurbishment program which remains on target.
We note the caution expressed by many commentators about the short-term market outlook for RMI related expenditure. We are pleased that we continue to trade well in an uncertain market place, and see some signs of returning consumer confidence. Taking into consideration the record low interest rates in the UK, we consider that the long-term prospects for enhanced RMI expenditure by the homeowner are robust.
Our continued market outperformance reflects our outstanding quality and value proposition, reinforced by our broad product range and ongoing development, geographic expansion, an effective digital strategy, and a market leading finance proposition.
Investment in our new factory extension at Wombwell, South Yorkshire, has commenced, and we are currently on time and on budget. The facility is scheduled to be operational in summer 2017.
Outlook
Our expectation is that the market will show some modest volume growth for the rest of 2016. We expect to continue to gain market share in H2, reflecting our strong order book at 30 June 2016 and our continued sales performance.
The business is well positioned and we expect to deliver a full year outturn in line with management expectations.
RS Halbert
Chairman
15 September 2016
Finance Review
Revenue
Revenue for the period was GBP83.5 million against GBP74.0 million for the same period last year, representing growth of 12.8%. The key factors underpinning this growth were:
-- 26.0% growth in leads generated from direct response from 31,095 to 39,118 -- 5.7% growth in the volume of frames installed from 141,712 to 149,742 -- 6.9% growth in average unit price from GBP520 to GBP556 ex VAT
The price list increase implemented at the start of the year to counterbalance the additional costs of the new consumer finance products has been secured. Unit prices have been further boosted by the sale and installation of 208 conservatory upgrades in the first 6 months of the year.
Gross margin
The basis of calculating gross margin has been changed from the beginning of this year and the prior period comparatives have been restated accordingly. Marketing costs that are directly linked to lead generation and previously included as 'Operating expenses' have been reclassified as 'Cost of sales', as explained in note 4.
On this basis gross profit increased by 11.9% in the period from GBP25.2 million in 2015 to GBP28.2 million in 2016. Gross margin suffered a small drop from 34.1% in the first half of 2015 to 33.7% for the same period in 2016.
The gross margin reduction is in line with expectations. The price list increase from 1 January 2016 almost offset the additional cost of the consumer finance products introduced on 1 June 2015. Average sales prices increased steadily through the first half as the pre-increase order book was installed, supporting expectations that gross margin will continue to improve in the second half of the year.
Other operating expenses
Other operating expenses for the period were GBP18.7 million (2015: GBP16.5 million), an increase of 13%. Employer National Insurance costs of GBP0.9 million were incurred in the period as a result of the exercise in April 2016 of LTIP options granted when the company floated in 2013.
The business continued to invest in building its brand profile, particularly in the south of England, and spent an additional GBP0.6 million in TV advertising.
Salary costs increased by GBP0.6 million as a result of the annual pay award and continued investment in organic growth.
EBITDA, PBT and EPS
Underlying EBITDA before share based payments was GBP11.1 million for the period (H1 2015: GBP9.5 million), an increase of 17%. PBT increased by 8% from GBP8.8 million in H1 2015 to GBP9.5 million but this was impacted by the one-off cost GBP0.9 million from the LTIP exercise.
Basic earnings per share for the period were 9.4p compared to 9.1p for the same period last year. The value for the first half of 2016 has been impacted by the one-off LTIP cost and by the dilution effect on the weighted average number of shares of both the LTIP exercise and the October 2015 warrant exercise. The basis for these calculations are detailed in note 6 to the accounts.
Cash
The cash balance at 30 June 2016 was GBP23.6 million, an increase of GBP7.1 million in the period.
Pre-tax operating activities generated GBP9.8 million (2015: GBP8.7 million). Capital expenditure in the period was GBP1.0 million. GBP0.7 million of this total related to the factory expansion project.
Dividends
The Board is declaring an interim dividend of 3.75p per share. The dividend will be paid on 31 October 2016 to shareholders on the register at close of business on 30 September 2016.
Condensed consolidated interim statement of comprehensive income
Unaudited Unaudited Audited Restated Restated Note 6 months 6 months 12 months ended 30 June ended 30 June ended 31 December 2016 2015 2015 GBP000 GBP000 GBP000 Revenue 83,548 73,990 148,902 Cost of sales (55,361) (48,777) (99,212) Gross profit 28,187 25,213 49,690 Other operating expenses (18,697) (16,485) (32,205) Operating profit 9,490 8,728 17,485 EBITDA before share based payments and charges relating to exercised LTIP options 11,103 9,528 19,060 Equity settled share based payments charges 8 (104) (224) (443) Charges relating to exercised LTIP options 9 (947) - - Depreciation and amortisation (562) (576) (1,132) Operating profit 9,490 8,728 17,485 Finance income 55 45 96 Finance expense (7) (12) (18) Profit before taxation 9,538 8,761 17,563 Taxation 7 (1,920) (1,701) (3,603) Profit after taxation for the period 7,618 7,060 13,960 Other comprehensive - - - income Total comprehensive profit for the period attributable to shareholders 7,618 7,060 13,960 ================ ================ =================== Earnings per share Basic (pence) 6 9.4 9.1 17.8 Diluted (pence) 6 9.3 8.7 17.3
All operations were continuing throughout all periods.
Condensed consolidated interim statement of financial position
Unaudited Unaudited Audited Note 6 months 6 months 12 months ended 30 ended 30 ended 31 June 2016 June 2015 December 2015 GBP000 GBP000 GBP000 Assets Intangible assets - Trademarks 504 504 504 Intangible assets - Goodwill 20,283 20,758 20,758 Intangible assets - Software 475 548 609 Property, plant and equipment 8,498 7,212 7,492 Deferred tax asset 30 746 1,241 Non-current assets 29,790 29,768 30,604 Inventories 1,711 1,556 1,500 Trade and other receivables 6,752 5,242 3,858 Cash and cash equivalents 23,552 14,864 16,485 Current assets 32,015 21,662 21,843 Total assets 61,805 51,430 52,447 ============ ============ ========== Equity Called up share capital 828 778 803 Share premium account 81,979 77,000 79,440 Profit and loss account 18,375 19,311 24,278 Common control transaction reserve (66,527) (66,527) (66,527) 34,655 30,562 37,994 Liabilities Trade and other payables 12,812 11,673 10,159 Dividends accrued 5 11,263 4,822 - Financial liabilities 70 94 108 Corporation tax liabilities 521 1,784 1,746 Provision for liabilities and charges 701 719 668 Current liabilities 25,367 19,092 12,681 Financial liabilities 35 130 70 Provision for liabilities and charges 1,748 1,646 1,702 Non-current liabilities 1,783 1,776 1,772 Total liabilities 27,150 20,868 14,453 ------------ ------------ ---------- Total equity and liabilities 61,805 51,430 52,447 ============ ============ ==========
Condensed consolidated interim statement of changes in equity
Share Share Profit Common Total capital premium and loss control equity account transaction reserve GBP000 GBP000 GBP000 GBP000 GBP000 Balance at 30 June 2015 778 77,000 19,311 (66,527) 30,562 Total comprehensive profit for the period - - 6,900 - 6,900 Transactions with owners of the Company: Issue of shares 25 2,440 - - 2,465 Equity settled share based payment - - 219 - 219 Deferred tax on equity settled share based payments - - 496 - 496 Dividends - - (2,648) - (2,648) Balance at 31 December 2015 803 79,440 24,278 (66,527) 37,994 Total comprehensive profit for the period - - 7,618 - 7,618 Transactions with owners of the Company: Issue of shares 25 2,539 (2,564) - - Equity settled share based payment - - 104 - 104 Deferred tax on equity settled share based payments - - 203 - 203 Dividends - - (11,263) - (11,263) Balance at 30 June 2016 828 81,979 18,375 (66,527) 34,655 ========= ========= ========== ============= =========
Condensed consolidated interim statement of cash flows
Unaudited Unaudited Audited 6 months 6 months 12 months ended 30 ended 30 ended 31 June 2016 June 2015 December 2015 GBP000 GBP000 GBP000 Cash flows from operating activities Profit for the year 7,435 7,060 13,960 Adjustments for: Depreciation of plant, property and equipment 461 493 957 Amortisation of intangible fixed assets 101 83 175 Finance income (54) (45) (96) Finance expense 7 12 18 Profit on sale of plant, 7 - - property and equipment Equity settled share based payments 104 224 443 Tax expense 2,103 1,701 3,603 ------------ ------------ ---------- 10,164 9,528 19,060 Increase in inventories (211) (93) (36) Increase in trade and other receivables (2,894) (1,928) (544) Decrease in trade and other payables 2,654 1,356 (160) Decrease in provisions 79 (147) (142) ------------ ------------ ---------- (372) (812) (882) Hire purchase interest paid (7) (11) (17) Other interest paid - (1) (1) (7) (12) (18) Taxation paid (1,734) (1,600) (3,540) Net cash from operating activities 8,051 7,104 14,620 ------------ ------------ ---------- Cash flows from investing activities Acquisition of property, plant and equipment (1,007) (663) (1,343) Interest received 54 45 96 Proceeds from issue of 42 - - property, plant and equipment Acquisition of intangible fixed assets - (28) (243) ------------ ------------ ---------- Net cash outflow from investing activities (911) (646) (1,490) Cash flows from financing activities Proceeds from the issue of ordinary shares - - 2,465 Payment of hire purchase and finance leases (73) (51) (97) Dividends paid - - (7,470) ------------ ------------ ---------- Net cash outflow from financing activities (73) (51) (5,102) Net increase in cash and cash equivalents 7,067 6,407 8,028 Cash and cash equivalents at start of year 16,485 8,457 8,457 Cash and cash equivalents at end of year 23,552 14,864 16,485 ============ ============ ==========
Notes to the interim financial information
1 General information
The condensed interim financial information set out herein is in respect of Safestyle UK plc and its subsidiaries (the Group) for the period ended 30 June 2016.
Safestyle UK plc is a public listed company incorporated in Jersey. The registered office address of Safestyle UK plc is 47 Esplanade, St Helier, Jersey JE1 0BD.
The financial information presented for the year ended 31 December 2015 is not the statutory accounts for that financial year, these accounts have been reported on by the company's auditor. The report of the auditor was unqualified and did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report.
The company is not required to present parent company information.
2 Basis of preparation
The condensed consolidated interim financial information for the period ended 30 June 2016 has been prepared in accordance with IAS 34, 'Interim financial reporting' as adopted by the European Union.
Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the last annual consolidated financial statements as at and for the year ended 31 December 2015.
The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the period ended 31 December 2015 which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
The accounting policies adopted in the condensed interim financial information are consistent with those set out in financial statements for the period ended 31 December 2015.
3 Going concern
The Group has considerable financial resources and has prepared forecasts that show the Group is expected to continue to trade strongly. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully.
The assessment of the Group's ability to execute its strategy by funding future working capital requirements involves judgement. The Directors monitor future cash requirements to assess the Group's ability to meet these funding requirements.
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
4 Significant accounting policies
Accounting Estimates
In preparing this condensed consolidated interim financial report, significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2015.
Reclassification of costs
In the current year costs of GBP3.0m (H1 2015: GBP2.3m, FY 2015: GBP4.8m) relating to the cost of generating of customer leads were reclassified as a 'cost of sale', previously these were classed as 'other operating expenses'. The board of Directors decided this reflected the 'true nature' of the cost. There is no resulting change to operating profit in the period and there are no prior year adjustments to profit. The previous year's figures have been restated to allow comparison with the current year.
5 Dividends Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 30 June 2016 30 June 2015 31 December 2015 The aggregate amount of dividends comprises: GBP'000 GBP'000 GBP'000 Dividends paid in respect of the period - - 4,822 Dividends declared 11,263 4,822 2,648 11,263 4,822 7,470 ------------- ------------- ------------
A final dividend for the year end 31 December 2015 of 6.8 pence per ordinary share totalling GBP5,630,847 was paid on 11 July 2016.
A special dividend for the year end 31 December 2015 of 6.8 pence per ordinary share totalling GBP5,630,847 was also paid on 11 July 2016.
A proposed interim dividend for the half year end 30 June 2016 of 3.75 pence per ordinary share will be paid on 31 October 2016.
6 Earnings per share
a) Basic earnings per share
The calculation of basic earnings per share has been based on the following profit attributable to ordinary shareholders and weighted-average number of shares outstanding. Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 30 June 2016 30 June 2015 31 December 2015 GBP'000 GBP'000 GBP'000 Profit attributable to ordinary shareholders 7,618 7,060 13,960 ============= ============= ============= Weighted-average number of ordinary shares (basic) No of shares No of shares No of shares '000 '000 '000 Issued ordinary shares at period end 81,184 77,778 78,283 ============= ============= =============
b) Diluted earnings per share
The calculation of diluted earnings per share has been based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares. Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 30 June 2016 30 June 2015 31 December 2015 GBP'000 GBP'000 GBP'000 Profit attributable to ordinary shareholders 7,618 7,060 13,960 ============= ============= ============= No of shares No of shares No of shares '000 '000 '000 Weighted-average number of ordinary shares (basic) 81,184 77,778 78,283 Effect of dilutive share options and warrants 385 3,040 2,435 Weighted-average number of ordinary shares (basic) at period end 81,569 80,818 80,718 ============= ============= ============= The average market value of the Company's shares for the purpose of calculating the dilutive effect of share options was based on quoted market prices for the period during which the options were outstanding. Unaudited Unaudited Audited 6 months 6 months 12 months ended ended ended 30 June 2016 30 June 2015 31 December 2015 Earnings per share (pence) 9.4 9.1 17.8 Diluted earnings per share (pence) 9.3 8.7 17.3 7 Taxation
The condensed interim financial information includes a tax charge based on the management's best estimate of the full year effective tax rate based on expected full year profits to 31 December 2016. The effective tax rate applied in the period was 20.13% (period ended 30 June 2015: 19.4%) which compares to the standard corporation tax rate of 20.00%. The main reason for the effective tax rate being higher than the standard rate is due to movements in deferred tax relating to capital allowances and share based payments.
Reductions in the UK corporation tax rate from 23% to 21% (effective 1 April 2014) and 20% (effective from 1 April 2015) were substantively enacted on 2 July 2013. Further reductions to 19% (effective 1 April 2017) and to 18% (effective 1 April 2020) were substantively enacted on 26 October 2015. This will reduce the Group's future current tax charge accordingly. The deferred tax asset at 30 June 2016 has been calculated based on these rates.
8 Share Based Payments
At 30 June 2016 the Group had the following share based payment arrangements:
LTIPS
The Group operates an equity-settled LTIP remuneration scheme for Directors and certain management ("LTIP 2013", "LTIP 2015" & "LTIP 2016").
The only vesting condition attached to the LTIP 2013 scheme was that the individual must remain an employee of the Group for a minimum period. The LTIP 2013 options vested on 5 December 2015. On 22 April 2016 all the members vested their options resulting in the issue of 2,564,427 new shares out of 3,986,110 originally granted. The remaining shares are not exercisable under the criteria used in the issue of the shares and the LTIP 2013 has now closed.
On 29 April 2016, a further 448,523 options were granted ("LTIP 2016"). The LTIP 2015 and 2016 schemes require a combination of specific performance based criteria and remaining an employee for a minimum period.
The numbers of share options in existence during the year were as follows:
Unaudited Unaudited Audited 6 months ended 6 months ended 12 months ended 30 June 2016 30 June 2015 31 December 2015 Number Weighted Number Weighted Number Weighted of share average of share average of share average options exercise options exercise options exercise price price price ------------------ ------------ ---------- ---------- ---------- ---------- ---------- Outstanding at start of period 4,581,976 GBP1.10 4,083,333 GBP1.00 4,083,333 GBP1.00 Granted during the year 448,533 GBP2.68 595,866 GBP1.79 595,866 GBP1.79 Issued in the year (2,564,427) GBP0.00 - - (97,223) GBP1.00 Cancelled in the year (1,421,683) GBP1.00 - - - GBP1.00 Lapsed in the year (14,265) GBP1.79 - - - GBP1.00 Outstanding at end of period 1,030,134 GBP2.18 4,679,199 GBP1.10 4,581,976 GBP1.10 Exercisable at end of period - - - - 3,986,110 GBP1.00 ------------------- ------------ ---------- ---------- ---------- ---------- ---------- 8 Share Based Payments (continued)
Options are valued using the Black-Scholes option pricing model. The following information is relevant in the determination of the fair value of the options granted during the period.
Unaudited 6 months ended 30 June 2016 LTIP 2016 LTIP 2015 LTIP 2013 Grant date 29/04/2016 01/04/2015 05/12/2013 Vesting date 29/04/2019 01/04/2018 05/12/2015 Lapsing date 01/04/2026 01/04/2025 05/12/2018 Risk free interest rate 1.22% 1.28% 1.19% Expected volatility 36.93% 43.13% 38.90% Expected option life (in years) 6.50 6.50 3.50 Weighted average share price after GBP2.67 GBP1.80 GBP0.77 adjusting for PV of dividends Weighted average GBP2.68 GBP1.79 GBP1.00 exercise price Weighted average fair value of options granted 65.79p 44.78p 15.93p Dividend Yield 3.60% 5.20% 8.00% Remaining contractual life 9.76 8.76 2.43
At the grant date there was limited share price history for the company on which to calculate volatility. Volatility was therefore estimated using both Safestyle and companies classified in the 'Home Improvement Retailers' subsector on the London Stock Exchange.
8 Share Based Payments (continued)
SAYE
On 1 April 2016 the company launched a new share save (SAYE) scheme ("SAYE 2016") in addition to the existing schemes ("SAYE 2014" and "SAYE 2015") for employees. All schemes allow employees to acquire a certain number of shares at a discount of 20% of the share price prior to the invitation to join the scheme, using amounts saved under a 'Save As You Earn' savings contract.
The numbers of share options in existence during the year were as follows:
Unaudited Unaudited Audited 6 months ended 6 months ended 12 months ended 30 June 2016 30 June 2015 31 December 2015 Number Weighted Number Weighted Number Weighted of share average of share average of share average options exercise options exercise options exercise price price price ------------- -------------------- ---------- -------------------- ---------- -------------------- ---------- Outstanding at start of period 452,460 GBP1.37 262,598 GBP1.31 262,598 GBP1.31 Granted during the year 87,485 GBP2.25 211,657 GBP1.43 211,657 GBP1.43 Lapsed during the period (59,093) GBP1.49 (21,795) GBP1.31 (21,795) GBP1.31 Outstanding at end of period 480,852 GBP1.51 474,255 GBP1.43 452,460 GBP1.37 Exercisable at end of period - - - - - -
-------------- -------------------- ---------- -------------------- ---------- -------------------- ----------
Options are valued using the Black-Scholes option pricing model. The following information is relevant in the determination of the fair value of the options granted during the year.
Unaudited 6 months ended 30 June 2016 SAYE 2016 SAYE 2015 SAYE 2014 Grant date 01/04/2016 01/04/2015 27/03/2014 Vesting date 01/05/2019 01/05/2018 01/05/2017 Lapsing date 01/11/2019 01/11/2018 01/11/2017 Risk free interest rate 0.56% 0.76% 1.31% Expected volatility 32.88% 23.80% 52.80% Expected option life (in years) 3.35 3.35 3.35 Weighted average share price after GBP2.81 GBP1.80 GBP1.57 adjusting for PV of dividends Weighted average GBP2.25 GBP1.43 GBP1.31 exercise price Weighted average fair value of options granted 71.93p 41.52p 58.40p Dividend Yield 3.40% 5.20% 8.00% Remaining contractual life 3.34 2.34 1.34
At the grant date there was limited share price history for the company on which to calculate volatility. Volatility was therefore estimated using both Safestyle and companies classified in the 'Home Improvement Retailers' subsector on the London Stock Exchange.
8 Share Based Payment (continued)
The total share-based expense comprises:
Unaudited Unaudited Audited 6 months ended 6 months ended 12 months ended 30 June 2016 30 June 2015 31 December 2015 GBP000 GBP000 GBP000 Equity settled - LTIP 60 186 369 Equity settled - SAYE 44 38 74 104 224 443 ---------------- ---------------- ----------------- 9 Charges relating to exercised LTIP options
On 22 April 2016 the LTIP 2013 options were exercised resulting in an employer's national insurance contribution charge of GBP920k and GBP27k of associated charges. These have been shown within 'operating profit' but excluded from 'EBITDA before share based payments and charges relating to exercised LTIP options' on the face of the statement of comprehensive income.
10 Seasonality
Order intake is subject to small seasonal fluctuations with higher demand in the first and fourth quarters as a result of seasonal weather factors. The business can, within limits, smooth this demand by flexing its order book and aims to level load its operations to minimize costs. As a result revenues and profits would normally be similar for both halves of the year.
INDEPENDENT REVIEW REPORT TO SAFESTYLE UK PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-yearly report for the six months ended 30 June 2016 which comprises the Condensed Consolidated Interim Statement of Comprehensive Income, the Condensed Consolidated Interim Statement of Changes in Equity, the Condensed Consolidated Interim Statement of Financial Position, the Condensed Consolidated Interim Statement of Cash Flows and the related explanatory notes. We have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.
As disclosed in note 2, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly report for the six months ended 30 June 2016 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the AIM Rules.
Ian Beaumont
for and on behalf of KPMG LLP
Chartered Accountants
1 Sovereign Square,
Sovereign St,
Leeds
LS1 4DA
15 September 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR USSRRNAAKAUR
(END) Dow Jones Newswires
September 15, 2016 02:01 ET (06:01 GMT)
1 Year Safestyle Uk Chart |
1 Month Safestyle Uk Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions