We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Spaceandpeople Plc | LSE:SAL | London | Ordinary Share | GB00BPQDJM21 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 86.00 | 82.00 | 90.00 | 86.00 | 81.25 | 86.00 | 2,561 | 08:00:20 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Real Estate Agents & Mgrs | 5.53M | -1.71M | -0.8781 | -0.98 | 1.68M |
From May 2019 to May 2024
TIDMSAL
RNS Number : 7939I
SpaceandPeople PLC
26 March 2018
SpaceandPeople plc
("SpaceandPeople" and the "Company")
Preliminary Results
SpaceandPeople, the retail, promotional and brand experience specialist, is pleased to announce its preliminary results for the 12 months ended 31 December 2017.
Financial Highlights
-- Gross revenue of GBP22.4 million (2016: GBP22.9 million) -- Net revenue of GBP10.0 million (2016: GBP9.7million) -- Profit from before taxation attributable to shareholders of GBP1.2 million (2016: GBP60k) -- Basic Earnings per Share before non-recurring costs of 4.8p (2016: 0.3p)
-- Net cash at year end of GBP2.7 million (2016: GBP0.4 million) and all bank borrowings now repaid
-- Dividend resumed with proposed payment of 1.5p per share (2016: nil)
Operational Highlights
-- Focus on core UK and German markets -- Growth in UK promotional and MPK revenue and profitability -- Increase in average MPK selling price and occupancy led to an increase in revenue of 24% -- Prestigious Broadgate Estates contract win and Landsec contract renewal -- Costs reduced and senior team strengthened
-- Successful renegotiation of terms with ECE in relation to the German RMU business for a one year contract extension in 2018
-- Majority of UK revenue driven by venues other than shopping centres for the first time
Contact details:
SpaceandPeople Plc 0845 241 8215 Matthew Bending, Gregor Dunlay Cantor Fitzgerald Europe 020 7894 7000 David Foreman, Will Goode (Corporate Finance) Alexander Pollen (Sales)
Chairman's Statement
I am pleased to report that the measures we took to meet the challenges faced by the Group in 2016 have resulted in an improved and more sustainable trading and financial performance in 2017.
Our focus on the core UK market and the effectiveness of our sales function delivered growth in both our UK Promotional and Retail revenues and profitability. The financial performance of our existing MPKs improved, and we succeeded in restructuring and extending our main contract in Germany with ECE, with lower costs and overheads, returning it to profitability.
The Group continues to be successful in retaining and winning new contracts with large scale venue and retail owners, such as Landsec and our improved effectiveness and performance in sales and venue optimisation has allowed us to create more revenue opportunities with long term clients such as Network Rail.
To complement this, we have recently strengthened the sales and venue teams with two senior appointments.
From a financial perspective, it is encouraging to see the Group strengthen its net cash position and resume dividend payments to shareholders.
Our strategy is to focus on our core markets of the UK and Germany, continue to win good quality contracts and diversify our revenue generation to deliver solid sustainable and growing returns for our shareholders.
Although there are many challenges in the retail sector, with a stronger and more focused senior team delivering our strategy, we look forward to the future with confidence.
Charles G. Hammond
Chairman
23 March 2018
Strategic Report
Principal Activities
The principal activity of the Group is the marketing and selling of promotional and retail licensing space on behalf of shopping centres and other venues throughout the UK and Germany and also in India.
Review of Business and Future Developments
The results for the period and the financial position of the Group are shown in the financial statements.
The review of the business and a summary of future developments are included in the Chairman's Statement, the Chief Executive Officer's Review and the Operating and Financial Review.
Principal Risks and Uncertainties
The principal risks identified in the business are:
Loss of client - Each year a number of the Group's contracts with clients come to an end. At this point, some are renewed, some are not renewed and others are renegotiated. When the amount of business that we transact with an established client reduces, it can take time to replace this income with business from new clients. The Group is not overly reliant on any single client and the loss of a significant client, although unwelcome, would not put the viability of the business at risk.
Loss of key personnel - The unexpected loss of a member of our senior management team could have a negative effect on the business in the short term, however, we have a management team of nine members who are encouraged and required to engage with and assist their colleagues in other areas of the business to ensure that understanding and exchange of ideas is a core element of their roles. This ensures that the business is not at risk while we seek to replace the member or conduct a reorganisation of the team.
System failure - Whilst no guarantees can be given that all possible eventualities are covered, the Group has comprehensive and strict policies and contingency plans concerning power outages, telecommunications failure, virus protection, hardware and software failure, frequent and full offsite backup of all data and disaster recovery. Contracts and service level agreements are in place with reputable suppliers to ensure that any disruption and risk to the business is kept to an absolute minimum. The adequacy and appropriateness of these policies and plans are reviewed on a regular basis. A significant hardware upgrade has been completed during 2017 and early 2018 and the Group has implemented a new CRM system during 2017 that is now fully operational.
Legal claims - The Group constantly reviews its exposure to possible legal claims and takes appropriate advice and action to protect both itself and its clients where any avoidable risk is identified, for example, by amending terms and conditions, service agreements, licences and risk assessments.
Key Performance Indicators
The key performance indicators are:
Hot Features
Premium
2017 2016
---------------------------------------- ----- -----
Gross revenue (GBP million) 22.4 22.9
---------------------------------------- ----- -----
Net revenue (GBP million) 10.0 9.7
---------------------------------------- ----- -----
Profit before taxation and
non-recurring costs attributable
to shareholders (GBP million) 1.17 0.06
---------------------------------------- ----- -----
Basic earnings per share before
non-recurring costs (p) 4.8 0.3
---------------------------------------- ----- -----
Proposed dividend (p) 1.5 -
---------------------------------------- ----- -----
Average number of Retail Merchandising
Units (RMUs) 185 220
---------------------------------------- ----- -----
Average number of Mobile Promotions
Kiosks (MPKs) 75 74
---------------------------------------- ----- -----
By order of the Board
Gregor Dunlay
Company Secretary
23 March 2018
Chief Executive Officer's Review
I am pleased that 2017 saw the Group recover from the issues it faced in 2016. Profit before tax attributable to shareholders rebounded to GBP1.2 million (2016 GBP0.1m before non-recurring costs). This was achieved through increased focus on our core businesses in the UK and Germany with strong performance in the UK brand experience and MPK divisions along with the German RMU business.
The key aims for the year were to ensure that growth in revenue and profit were sustainable and that more diverse revenue streams would help insulate us from overexposure to any one large market or client. To achieve this, we restructured the UK management team bringing in additional management resource during the year. We also developed and implemented a new CRM system which has recently gone live and will improve productivity. The post year end contract renewal with Landsec has expanded and enhanced our relationship with them and reinforces our ability to improve revenues and diversity with a complex and multi-use property portfolio.
The fact we have driven profits, repaid all bank debt and generated strong cashflow in the year has enabled us to resume dividend payments and also invest in new staff and systems.
UK
Promotions
The very visible experiential campaigns which the Company facilitates rose by 30% in 2017 driven by an increase in locations such as Broadgate Estates in The City and the development of the Network Rail portfolio. Over 270 brands utilised our network of national locations with Johnnie Walker/McLaren F1 and the Fast and Furious movie franchise using London venues in particular for their high-profile launches. Lucozade, Coca Cola and The Economist engaged with us for sampling direct to consumers, and others including Porsche and Nespresso created pop up shops to sell direct to the public.
One of our key aims has been to increase the volume of business we transact in non-shopping centre, high footfall venues as this creates a greater balance of locations for brands to select. As a result, and for the first time, 2017 saw more revenue generated from these locations than traditional shopping centres.
Retail
Revenue in the UK retail division increased to GBP3.4 million (2016: GBP3.2 million) driven by a GBP400k increase in MPK revenue. Whilst the average number or MPKs in operation remained the same, increases in both occupancy and selling price had a positive effect. This demonstrates the traditional temporary retailer wants to be more temporary than ever and that local and national brands appreciate the added value an installed MPK delivers in the form of higher responses and visibility. As expected, the number of RMUs declined from 110 to 91 in the year, however, Just-in-Time RMUs around the Christmas trading period grew revenue from this activity to GBP250k from GBP150k in the previous year, again, representative of the temporary trends described above.
New Venues
The Company has been negotiating an expanded contract for Landsec throughout 2017 which was formally announced post year end. The other notable win was Broadgate Estates' portfolio of outdoor venues in London. New venue growth, as well as offering new services to a greater and more diverse venue type, is a priority of the Group. Accordingly, we have created a New Venues Director position, working with Nancy Cullen who remains in charge of existing venue management. This new role should give us more bandwidth to develop these new contracts going forward.
Germany
Trading in Germany was mixed, with the retail division performing well under the revised contract with ECE, while the promotions business struggled with the ending of the ECE contract in the previous year and a reduction in business transacted with MEC in 2017. Despite this uncertainty, both businesses still produced creditable efforts and remain core parts of the Group.
German Promotions
Revenue from this division declined by 12% from GBP0.9 million to GBP0.8 million due to the reduced opportunities with existing clients. Overheads have been reduced by moving to smaller accommodation and reducing headcount. The team must be given credit for their professionalism and loyalty during this difficult period.
German Retail
Post year end, we announced an extension of the ECE retail contract for a further year until January 2019. This is based on a smaller number of RMUs with a decrease from 94 units at the start of 2018 to 55 units in January 2019. However, we are optimistic that we could increase "Just-in-Time" units into ECE and expand our services to other property groups.
Germany remains a core territory for the Group. It has contributed much to revenue, profit and business development over the years and its sheer potential market size means it remains attractive for us to continue trying to grow these divisions in the future. I believe the contribution our German operations have made to the Group in 2017, despite the difficulties during the year, validate this. Post year end contract extensions at ECE for the "pop up shop" retail division as well as a strong new venues pipeline developing for both divisions and the fact that we have experienced management and staff gives us encouragement that the German businesses can perform well going forward.
Outlook for 2018
We entered 2018 in a good position on the back of the 2017 results. It is a challenge to forecast the macro business environment at this time, however the investment in staff along with the diversity of products and venues we now have does give me confidence the business will continue to perform well in 2018. I am hopeful that Germany will win some new contracts in both businesses which will enable them to grow their revenue and profits again in the future. I am also optimistic we can extend our Just-in-Time concept to more venues during 2018.
The UK experiential campaign team has had a slightly slower than expected start to in 2018, due to timing differences on repeat bookings, however, these delayed bookings are currently being worked on. Retail, MPK and regional sales are all performing ahead of this time last year and in line with management expectations.
The new roles of UK New Venues Director and appointments in the Client Services team mean we have the resources and capacity to reach and gain new venues, and access more spend from agencies and brands that we have not previously accessed.
Matthew Bending
Chief Executive Officer
23 March 2018
Operating and Financial Review
The principal focus of the Group during 2017 was to ensure that concentration of efforts on the core business units continued from the previous year. Coupled with the benefits that would come from the overhead rationalisation that had taken place, the Group has returned to profitability and performing better than had been anticipated at the start of 2017.
The UK divisions performed particularly strongly in 2017. Promotional revenue increased by 16% and operating profit increased by 44% compared with the previous year. All major contracts performed well, especially the Network Rail agreement. Retail revenue increased by 6% and operating profit of GBP0.4 million in this division was a significant improvement from the loss of GBP0.2 million in 2016. Improvements in MPK selling rates more than compensated for the reduction in the number of RMUs in operation where some unproductive agreements had been terminated.
German retail revenue fell by 10% due to a planned decrease in the number of RMUs in operation. However, due to the significant reduction in centre rent payable following the renegotiation of the contract with ECE, this division generated an operating profit of GBP0.2 million compared with an operating loss of GBP0.3 million in the previous year. Revenue in the German promotional division fell by 12% as the full effect of the termination of their contract with ECE during 2016 was felt for the first time. As a result of this reduction in the volume of business transacted, overheads have been reduced and the division made a small operating loss of GBP0.02 million in 2017 compared with a loss of GBP0.2 million the previous year.
Revenue
Gross revenue generated on behalf of our clients was GBP22.4 million in 2017, which was GBP0.5 million (2%) lower than like for like gross revenue in the previous year. This was mainly due to reductions in German promotional and retail revenue. Despite gross revenue falling by 2%, net revenue increased by 3% to GBP10.0 million as both the UK and German promotional divisions achieved higher blended commission income than in the previous year.
The strong performance of the UK promotional division was across all business types with Brand Experience revenue being 27% higher than in the previous year and retail and regional business also performing particularly strongly.
UK retail revenue increased by GBP0.2 million to GBP3.4 million in 2017. This was due to an increase in MPK revenue of GBP0.4 million being partially offset by a decline in RMU revenue of GBP0.2 million. The increase of 24% in MPK revenue was achieved even though the average number of units in operation during the year remained the same as in 2016 at 68 units. This was due to an increase in the average selling price of 15% and an increase in the occupancy rate of 7%. The decline in RMU revenue of 12% was due to a reduction of the average number of units in operation by 17%.
Administrative Expenses
The gross profit of the Group was 20% higher than in 2016 at GBP6.6 million (2016: GBP5.5 million). This was achieved without any significant increase in administrative costs, with the savings made in 2016 being maintained in 2017.
The average number of people employed in the business fell by 19 to 99 in 2017. This was due to a reduction in the number of telesales and commercial staff with there being 6 fewer in India, 5 fewer in German retail and 4 fewer due to the closure of S&P+ during 2016.
Profit
Operating profit of GBP1.2 million was an increase of GBP1.4 million on the previous year (2016: loss of GBP0.2million). GBP0.3 million of this was due to non-recurring costs in the previous year and the other GBP1.1 million being on a like-for-like basis. The improvement is due to the operational gearing of the Group, with administration costs maintained so improved revenue and gross profit flowed down directly to operating profit.
Basic Earnings per Share ("EPS") increased to 4.8p (2016: negative 3.38p). Fully diluted EPS increased to 4.3p (2016: negative 3.12p). Basic EPS is calculated as profit after tax attributable to the owners of the Company divided by the weighted average number of shares in issue during the year which was 19,519,563 (2016: 19,519,563). Fully diluted EPS also takes into account the number of shares that would be issued on the exercise of outstanding share options. The weighted average number of shares used to calculate the diluted EPS was 21,840,060 (2016: 21,168,724).
Cash Flow
The Group generated GBP2.4 million of net cash flow from operating activities during the year (2016: GBP0.4 million). This was achieved due to strong operating profit before depreciation and amortisation. During the year GBP0.1 million was spent on fixed assets as the UK divisions implemented a new bespoke CRM system. No dividend was paid during the year and the GBP1.2 million bank facility drawn down at the beginning of the year was repaid in full. Consequently, the gross cash position was GBP1.1 million higher at the end of 2017 than 2016 and the net cash position was GBP2.3 million higher.
Dividends
As a result of the return to profitability in 2017 and strong balance sheet position, the Board is proposing a final dividend of 1.5p per share at the Annual General Meeting on 24 April 2018. If approved, this will be paid on 25 April 2018. This dividend will represent a distribution to shareholders of 31% of the basic EPS in 2017.
Gregor Dunlay
Chief Financial Officer
23 March 2018
Consolidated Statement of Comprehensive Income
For the 12 months ended 31 December 2017
Notes
12 months 12 months
to to
31 December 31 December
'17 '16
GBP'000 GBP'000
Revenue 4 9,995 9,661
Cost of Sales 4 (3,389) (4,133)
Gross Profit 6,606 5,528
Administration expenses (5,640) (5,618)
Other operating
income 210 194
Operating Profit
before non-recurring
costs 1,176 104
Non-recurring costs 7 - (289)
Operating Profit
/ (Loss) 1,176 (185)
------------ ------------
Finance income 12 -
Finance costs 8 (35) (40)
Profit / (Loss)
before taxation 1,153 (225)
------------ ------------
Taxation 9 (237) (44)
Profit / (Loss)
after taxation from
continuing operations 916 (269)
------------ ------------
Discontinued Operations 10 - (543)
Profit / (Loss)
after taxation 916 (812)
----- -------
Other Comprehensive
income
Foreign exchange
differences on
translation of foreign
operations 3 104
Total comprehensive
income for the 919 (708)
----- -------
Period
Profit / (Loss)
for the year attributable
to:
Owners of the Company 933 (660)
Non-controlling
interests (14) (152)
----- -------
919 (812)
----- -------
Total comprehensive
income for the
period attributable
to:
Owners of the Company 933 (556)
Non-controlling
interests (14) (152)
----- -------
Total comprehensive
income for the 919 (708)
----- -------
Period
Earnings per share 25
Basic - Before non-recurring
costs 4.8p 0.3p
Basic - After non-recurring
costs 4.8p (3.4p)
Diluted - Before
non-recurring costs 4.3p 0.3p
Diluted - After
non-recurring costs 4.3p (3.1p)
Consolidated Statement of Financial Position
At 31 December 2017
Company number SC212277
Notes 31 December 31 December
'17 '16
GBP'000 GBP'000
Assets
Non-current assets:
Goodwill 13 8,225 8,225
Other intangible
assets 14 15 21
Property, plant
& equipment 15 1,147 1,558
------------ ------------
9,387 9,804
Current assets:
Trade & other receivables 17 3,367 3,350
Cash & cash equivalents 18 2,661 1,584
------------ ------------
6,028 4,934
Total assets 15,415 14,738
------------ ------------
Liabilities
Current liabilities:
Trade & other payables 19 5,120 4,266
Current tax payable 19 (46) (146)
Other borrowings 20 - 1,000
------------ ------------
5,074 5,120
Non-current liabilities:
Deferred tax liabilities 16 91 90
Long-term loan 20 - 200
------------ ------------
91 290
Total liabilities 5,165 5,410
------------ ------------
Net assets 10,250 9,328
------------ ------------
Equity
Share capital 23 195 195
Share premium 4,868 4,868
Special reserve 233 233
Retained earnings 4,698 3,762
Equity attributable
to owners of the 9,994 9,058
Company
Non-controlling
interest 256 270
------------ ------------
Total equity 10,250 9,328
------------ ------------
The financial statements were approved by the Board of Directors and authorised for issue on 23 March 2018.
Signed on behalf of the Board of Directors by:
M J Bending - Director
Consolidated Statement of Cash Flows
For the 12 months ended 31 December 2017
Notes 12 months 12 months
to to
31 December 31 December
'17 '16
GBP'000 GBP'000
Cash flows from operating
activities
Cash generated from
operations 2,559 335
Interest received 12 -
Interest paid 8 (35) (40)
Taxation (136) 128
Net cash inflow from
operating 2,400 423
activities
------------ ------------
Cash flows from investing
activities
Purchase of intangible
assets 14 (12) (25)
Purchase of property,
plant & equipment 15 (111) (308)
Net cash (outflow)
from investing (123) (333)
activities
------------ ------------
Cash flows from financing
activities
Bank facility (repaid)
/ received (1,200) 200
Dividends paid 12 - (429)
------------ ------------
Net cash (outflow)
from (1,200) (229)
Financing activities
------------ ------------
Increase / (Decrease)
in cash and cash
equivalents 1,077 (139)
Cash and cash equivalents
at beginning of 1,584 1,723
period
------------ ------------
Cash and cash equivalents
at end of 18 2,661 1,584
period
------------ ------------
Reconciliation of
operating profit
to net
cash flow from operating
activities
Operating profit
/ (loss) 1,176 (185)
Operating profit
/ (loss) from discontinued
operation 10 - (543)
Amortisation of
intangible assets 14 18 16
Depreciation of
property, plant
& 15 522 328
equipment
Effect of foreign
exchange rate moves 6 104
(Increase) / Decrease
in receivables (17) 855
Increase / (Decrease)
in payables 854 (240)
------ ------
Cash flow from operating
activities 2,559 335
------ ------
Consolidated Statement of Changes in Equity
For the 12 months ended 31 December 2017
Share Share Special Retained Non- Total
capital premium reserve earnings controlling equity
GBP'000 GBP'000 GBP'000 GBP'000 interest GBP'000
GBP'000
At 31 December
2015 195 4,868 233 4,747 170 10,213
Comprehensive
income:
Foreign currency
Translation - - - 104 - 104
(Loss) for
the period - - - (660) (152) (812)
-------- -------- -------- --------- ------------ --------
Total comprehensive - - - (556) (152) (708)
Income
-------- -------- -------- --------- ------------ --------
Transactions
with
owners:
Elimination
of non- controlling
interest in
S&P+ - - - - 252 252
Dividends
paid - - - (429) - (429)
-------- -------- -------- --------- ------------ --------
Total transactions
with - - - (429) 252 (177)
Owners
At 31 December
2016 195 4,868 233 3,762 270 9,328
-------- -------- -------- --------- ------------ --------
Comprehensive
income:
Foreign currency
Translation - - - 3 - 3
Profit / (Loss)
for the period - - - 933 (14) 919
---- ------ ---- ------ ----- -------
Total comprehensive - - - 936 (14) 922
Income
---- ------ ---- ------ ----- -------
Transactions
with
owners:
Dividends - - - - - -
paid
---- ------ ---- ------ ----- -------
Total transactions - - - - - -
with
Owners
At 31 December
2017 195 4,868 233 4,698 256 10,250
---- ------ ---- ------ ----- -------
Notes to the Financial Statements
1. General information
SpaceandPeople plc is a public limited company incorporated and domiciled in Scotland (registered number SC212277) which is listed on AIM (dealing code SAL).
2. Basis of preparation
The Group's financial statements for the period ended 31 December 2017 and for the comparative period ended 31 December 2016 have been prepared on a going concern basis under the historical cost convention in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and International Financial Reporting Interpretations Committee (IFRIC) interpretations, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
The Directors have, at the time of approving the financial statements, a reasonable expectation that SpaceandPeople 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 financial statements.
Future accounting developments
New and revised IFRSs applied with no material effect on the consolidated financial statements
Title Implementation Effect on Group
IAS 12 - Amendments Annual periods None
to "Recognition beginning on
of Deferred Tax or after 1 January
Assets for Unrealised 2017
Losses"
IAS 7 - Amendments Annual periods None
to "Disclosure beginning on
Initiative" or after 1 January
2017
The following standard will be introduced in future periods
Title Implementation Effect on Group
IFRS 15 - "Revenue Annual periods None
from Contracts beginning on
with Customers" or after 1 January
2018
IFRS 9 - "Financial Annual periods None
Instruments" beginning on
or after 1 January
2018
IFRS 16 - "Leases" Annual periods This standard
beginning on is likely to
or after 1 January have implications
2019 to the Statement
of Financial
Position with
an increase in
both assets and
liabilities recognised.
A full impact
assessment will
be carried out
during 2018.
Management anticipates that the standards and interpretations in issue, but not yet effective will be adopted in the financial statements when they become effective and foresee currently no material impact by the adoptions on the financial statements of the Group in the period of initial application. However, this will be assessed further upon implementation.
3. Accounting policies
Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.
For the purpose of impairment testing, goodwill is allocated to each of the Group's cash-generating units (or groups of cash-generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss of goodwill is recognised directly in the consolidated statement of comprehensive income. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
The Group's policy for goodwill arising on the acquisition of an associate is described below.
Investments in subsidiaries
The parent Company's investments in subsidiary undertakings are included in the Company statement of financial position at cost, less provision for any impairment in value.
Revenue
Revenue is measured at the fair value of consideration received or receivable. Revenue is shown net of value-added tax, rebates and discounts and after eliminating intergroup sales. Revenue is recognised when the amount of revenue can be measured reliably, it is probable that future economic benefits will flow to the Group and when any specific delivery criteria have been met.
Commission
Revenue from commission receivable while acting as agent is recognised when the following conditions are satisfied;
- Contract is agreed with promoter / merchant - Venue acceptance of contract - Invoice issued and no further input anticipated
Acting as principal
Revenue from agreements where we act as principal i.e. renting space from venues and reselling to promoters and operators, is recognised as gross revenue receivable by us, with the corresponding amount payable to the venue owner being recognised in cost of sales.
Leasing Income
Revenue from leasing activities is recognised on a straight-line basis over the term of the lease.
Licence Fees
Licence fee revenue is recognised on an accrual basis in accordance with the substance of the relevant agreement.
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset's net carrying amount on initial recognition.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Property, plant & equipment
Depreciation is provided at the annual rates below in order to write off each asset over its estimated useful life.
Plant & equipment - 12.5% of cost Fixtures & fittings - 25% of cost Computer equipment - 25% of cost Computer software - 33% of cost
Property, plant & equipment is stated at cost less accumulated depreciation to date.
Intangible assets
Website development costs
The Group capitalises all costs directly attributable to further developing its websites, while costs which relate to on-going maintenance are expensed as they arise. The capitalised costs are depreciated over three years.
Patents and trademarks
The costs of obtaining patents and trademarks are capitalised and written off over the economic life of the asset acquired.
Impairment of non-current assets
The need for any non-current asset impairment is assessed by comparison of the carrying value of the asset against the higher of realisable value and the value in use or, in the case of intangible assets, the anticipated future cash flows arising from the asset.
Leasing commitments
Rentals paid under operating leases are charged against profit as incurred. The Group has no finance leases.
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis over the term of the relevant lease.
Taxation
The tax expense represents the sum of tax currently payable and deferred tax. Tax currently payable is based on the taxable profit for the period. The Group's liability for current tax is calculated using rates that have been enacted or substantially enacted at the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in computation of taxable profits and is accounted for using the liability method. Deferred tax liabilities are recognised for all temporary timing differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition, other than in a business combination, of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted at the balance sheet date. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.
Foreign exchange
Items included in the Group's financial statements are measured using Pounds Sterling, which is the currency of the primary economic environment in which the Group operates and is also the Group's presentational currency.
Transactions denominated in foreign currencies are translated into Sterling at the rates ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates at that date. These translation differences are dealt with in the profit and loss account.
The income and expenditure of overseas operations are translated at the average rates of exchange during the period. Monetary items on the balance sheet are translated into Sterling at the rate of exchange ruling on the balance sheet date and fixed assets at historical rates. Exchange difference arising are treated as a movement in reserves.
Financial instruments
Financial assets and liabilities are recognised in the Group's balance sheet when it becomes a party to the contractual provisions of the instrument.
Trade and other receivables
Trade and other receivables are carried at original invoice value less an allowance for any uncollectable amounts. An allowance for bad debts is made when there is objective evidence that the Group will not be able to collect the debts. Bad debts are written off in the income statement when identified.
Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at cost and comprise cash in hand, cash at bank and deposits with banks.
Trade and other payables
Trade and other payables are carried at amortised costs and represent liabilities for goods or services provided to the Group prior to the period end that are unpaid and arise when the Group becomes obliged to make future payments in respect of these goods and services.
Equity instruments
Equity instruments issued by the Group are recorded at the proceeds received, net of direct issue costs.
Share based payments
The Group operates a number of equity settled share-based payment schemes under which share options are issued to certain employees. The fair value determined at the grant date of the equity settled share-based payment, where material, is expensed on a straight-line basis over the vesting period. For schemes with only market-based performance conditions, those conditions are taken into account in arriving at the fair value at grant date.
Pensions
The Group pays contributions to the personal pension schemes of certain employees. Contributions are charged to the income statement in the period in which they fall due.
Critical accounting judgements and estimates
The preparation of financial statements in conformity with IFRS requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the period. Although these estimates are based on management's best knowledge of current events and actions, actual results may differ from those estimates. IFRS also requires management to exercise its judgement in the process of applying the Group's accounting policies.
The areas where significant judgements and estimates have been made in the preparation of these financial statements are the useful lives and impairment of non-current and intangible assets, impairment of the value of investment in associates and taxation. Explanations of the methodology and the resultant assumptions are detailed in the relevant accounting policies above and the respective notes to the financial statements.
Borrowing costs
Borrowing costs are amortised over the duration of the loan and recognised throughout the term of the loan.
4. Segmental reporting
The Group maintains its head office in Glasgow and a subsidiary office in Hamburg, Germany. These are reported separately. In addition, the retail business, now trading as POP retail, has an office in London and a subsidiary in Germany. The Group has determined that these are the principal operating segments as the performance of these segments is monitored separately and reviewed by the Board.
The following tables present revenues, results and asset and liability information regarding the Group's two core business segments - Promotional Sales and Retail, split by geographic area, after licence fees and management charges made between Group companies. The Other segment incorporates SpaceandPeople India.
Segment revenues Promotion Promotion Retail Retail Head Other Group
and
results UK Germany UK Germany Office
for 12 months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
to
31 December
'17
Continuing
operations 3,695 807 3,438 1,993 - 62 9,995
Revenue
Cost of sales - - (2,648) (741) - - (3,389)
Administrative
expenses (1,710) (895) (389) (1,230) (1,307) (109) (5,640)
Other revenue - 69 - 141 - - 210
Segment operating
profit 1,985 (19) 401 163 (1,307) (47) 1,176
/ (loss)
------------ ------------ --------- --------- -------- -------- --------
Finance income - - - - - 12 12
Finance costs (35) - - - - - (35)
Segment profit
/ (loss) 1,950 (19) 401 163 (1,307) (35) (1,153)
before taxation
------------ ------------ --------- --------- -------- -------- --------
Segment assets Promotion Promotion Retail Retail Other Group
and
liabilities UK Germany UK Germany
as at 31 December GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
'17
Total segment
assets 7,486 725 5,386 1,077 741 15,415
Total segment
liabilities (2,882) (493) (1,336) (383) (71) (5,165)
Total net
assets 4,604 232 4,050 694 670 10,250
---------- ---------- -------- -------- -------- --------
Segment revenues Promotion Promotion Retail Retail Head Other Group
and
results UK Germany UK Germany Office
for 12 months GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
to
31 December
'16
Continuing
operations 3,185 917 3,244 2,226 - 89 9,661
revenue
Cost of sales - - (2,829) (1,304) - - (4,133)
Administrative
expenses (1,718) (1,162) (504) (1,294) (832) (108) (5,618)
Other revenue - 90 - 100 - 4 194
Non-recurring
costs (87) - (126) - (76) - (289)
Segment operating
profit 1,380 (155) (215) (272) (908) (15) (185)
/ (loss)
---------- ---------- -------- -------- -------- -------- --------
Finance costs (40) - - - - - (40)
Segment profit
/ (loss) 1,340 (155) (215) (272) (908) (15) (225)
before taxation
---------- ---------- -------- -------- -------- -------- --------
Segment assets Promotion Promotion Retail Retail Other Group
and
liabilities UK Germany UK Germany
as at 31 December GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
'16
Total segment
assets 7,130 1,002 4,819 995 792 14,738
Total segment
liabilities (3,334) (694) (964) (352) (66) (5,410)
Total net
assets 3,796 308 3,855 643 726 9,328
---------- ---------- -------- -------- -------- --------
5. Operating profit
The operating profit is stated after charging:
12 months 12 months
to to
December December
'17 '16
GBP'000 GBP'000
Motor vehicle leasing 78 93
Property leases 347 369
Amortisation of intangible
assets 18 16
Depreciation of property,
plant and equipment 532 328
---------- ----------
975 806
---------- ----------
Auditor's remuneration:
Fees payable for:
Audit of Company 22 19
Audit of subsidiary
undertakings 19 22
Tax services 8 4
Other services 1 3
---------- ----------
50 48
---------- ----------
Directors' remuneration 741 539
---------- ----------
6. Staff costs
The average number of employees in the Group during the period was as follows:
12 months 12 months
to to
December December
'17 '16
Executive Directors 3 3
Non-executive Directors 3 3
Administration 32 30
Telesales 42 60
Commercial 10 15
Maintenance 9 7
---------- ----------
99 118
---------- ----------
12 months 12 months
to to
December December
'17 '16
GBP'000 GBP'000
Wages and salaries 3,782 4,149
Social Security costs 425 481
Pensions 189 50
---------- ----------
4,396 4,680
---------- ----------
Details of Directors' emoluments, including details of share option schemes, are given in the remuneration report. These disclosures form part of the audited financial statements of the Group.
7. Non-recurring costs
During the period, the Group did not incur any one-off costs (2016: GBP289k in relation to restructuring costs and MPK France pilot costs).
8. Finance income and costs
12 months 12 months
to to
December December
'17 '16
GBP'000 GBP'000
Finance income:
Interest receivable 12 -
Finance costs:
Interest payable (35) (40)
9. Taxation
12 months 12 months
to to
December December
'17 '16
GBP'000 GBP'000
Current tax expense:
Current tax on profits for
the year 243 70
Adjustment for (over) provision
in prior periods (1) (62)
---------- ----------
Total current tax 242 8
Foreign tax:
Current tax on foreign income 52 -
for the period
Adjustment for (over) /
under provision in prior
periods (57) 4
---------- ----------
Total foreign tax (5) 4
Deferred tax:
Charge / credit in respect
of tax losses - 37
Charge in respect of temporary
timing differences - (18)
Charge in relation to prior
period - 13
---------- ----------
Total deferred tax - 32
Income tax expense as reported
in the Income Statement 237 44
---------- ----------
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The differences are explained below:
12 months 12 months
to to
December December
'17 '16
GBP'000 GBP'000
Profit on ordinary activities
before tax 1,153 (768)
---------- ----------
Profit on ordinary activities
at the standard rate of
corporation tax in
the UK of 19% (2016: 20%)
Jan - Dec 2016: 20% - (154)
Jan - Mar 2017: 20% 57 -
Apr - Dec 2017: 19% 165 -
Tax effect of:
* Prior period adjustment (57) (59)
18 -
* Difference due to foreign taxation rates 4 (17)
50 274
* Tax losses
* Disallowable items
Income tax expense as reported
in the Income Statement 237 44
---------- ----------
10. Discontinued operations
During the prior period, the Group took decision to close its S&P+ business of which it owned 51%. The combined results of the discontinued operations included in the loss for the previous year are set out below. The comparative loss / profit from discontinued operations have been represented to include those operations classified as discontinuing in the prior year.
12 months 12 months
to to
December December '16
'17
Profit / (Loss) for the GBP'000 GBP'000
year from discontinued
operations
Revenue - 487
Cost of Sales - (343)
Gross Profit - 144
Administration expenses - (435)
Results from Operating
activities (Net of Tax) - (291)
Non-controlling interest
eliminated - (252)
(Loss) / profit for period
from Discontinued operations - (543)
11. Profit for the period
The Company has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements. The Group profit for the period includes a Company profit after tax and before dividends of GBP570k after the incorporation of all UK head office costs (2016 loss: GBP73k) which is dealt with in the financial statements of the parent Company.
12. Dividends
12 months 12 months
to to
December December '16
'17
GBP'000 GBP'000
Paid during the period - 429
Recommended final dividend 293 -
Equity - A final dividend of 1.50p per ordinary share is recommended for 2017 (no final dividend for 2016)
13. Goodwill
Cost GBP'000
At 31 December 2015 8,225
Additions -
--------
At 31 December 2016 8,225
Additions -
--------
At 31 December 2017 8,225
--------
Accumulated impairment losses
At 31 December 2015 -
Charge for the period -
At 31 December 2016 -
Charge for the period -
At 31 December 2017 -
Net book value
At 31 December 2015 8,225
------
At 31 December 2016 8,225
------
At 31 December 2017 8,225
------
Goodwill acquired in a business combination is allocated at acquisition to the cash-generating units (CGUs) that are expected to benefit from that business combination. The Directors consider that the businesses of the UK Retail sub group and SpaceandPeople India Pvt Limited are identifiable CGUs and the carrying amount of Goodwill is allocated against these CGUs. No amortisation of the carrying value has been occurred at the financial statement review date. Goodwill for the UK Retail sub group remains unchanged at GBP7,981,000 and goodwill for SpaceandPeople India Pvt Limited remains unchanged at GBP244,000.
The recoverable amounts of the cash generating units are determined on value in use calculations which use cash flow projections based on financial budgets approved by the Board covering a five-year period followed by a terminal factor at a discount rate of 3% per annum. Cash flow projections during the budget period are based on an average growth in EBITDA which the Directors consider to be conservative given the plans for the businesses and the potential increased returns. As a result of the sensitivity analysis carried out, the Directors believe that any reasonable possible change in the key assumptions on which the recoverable amounts are based would not cause the aggregate carrying amounts to exceed the aggregate recoverable amounts of the cash generating units and that cash flows from these units will continue in line with expectations for the foreseeable future.
14. Other intangible assets
Cost Website Product Patents Total
&
development development trademarks
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2015 284 137 86 507
Additions - - 25 25
Elimination
of S&P+ - - (8) (8)
------------ ------------ ----------- --------
At 31 December
2016 284 137 103 524
Additions - - 12 12
------------ ------------ ----------- --------
At 31 December
2017 284 137 115 536
------------ ------------ ----------- --------
Amortisation Website Product Patents Total
&
Development development Trademarks
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2015 284 137 69 490
Charge for
the period - - 16 16
Elimination
of S&P+ - - (3) (3)
------------ ------------ ----------- --------
At 31 December
2016 284 137 82 503
Charge for
the period - - 18 18
------------ ------------ ----------- --------
At 31 December
2017 284 137 100 521
------------ ------------ ----------- --------
Net book Website Product Patents Total
value &
development Development trademarks
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2015 - - 17 17
------------- ------------- ----------- --------
At 31 December
2016 - - 21 21
------------- ------------- ----------- --------
At 31 December
2017 - - 15 15
------------- ------------- ----------- --------
15. Property, plant and equipment
The Group movement in property, plant & equipment assets was:
Cost Plant Fixture Computer Total
& &
equipment fittings equipment
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2015 2,907 258 542 3,707
Additions 151 16 159 326
Disposals (18) - - (18)
Elimination of
S&P+ - - (127) (127)
---------- --------- ---------- --------
At 31 December
2016 3,040 274 574 3,888
Additions 8 3 100 111
---------- --------- ---------- --------
At 31 December
2017 3,048 277 674 3,999
---------- --------- ---------- --------
Depreciation Plant Fixture Computer Total
& &
Equipment Fittings Equipment
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2015 1,408 246 428 2,082
Charge for the
period 235 3 90 328
Elimination of
S&P+ - - (80) (80)
---------- --------- ---------- --------
At 31 December
2016 1,643 249 438 2,330
Charge for the
period 418 4 100 522
---------- --------- ---------- --------
At 31 December
2017 2,061 253 538 2,852
---------- --------- ---------- --------
Net book value Plant Fixture Computer Total
& &
equipment Fittings Equipment
GBP'000 GBP'000 GBP'000 GBP'000
At 31 December
2015 1,499 12 114 1,625
---------- --------- ---------- --------
At 31 December
2016 1,397 25 136 1,558
---------- --------- ---------- --------
At 31 December
2017 987 24 136 1,147
---------- --------- ---------- --------
16. Deferred tax
31 December 31 December
'17 '16
GBP'000 GBP'000
Deferred tax liability:
Deferred tax liability
to be recognised after
more than 12 months
91 90
Deferred tax assets:
Deferred tax asset
to be recognised after
less than 12 months - -
Deferred tax liability
(net) 91 90
============ ============
At 1 January 2017 90 58
Debit / (Credit) in
respect of losses 37
Charge in respect
of temporary timing
differences on property,
plant and equipment 1 (5)
At 31 December 2017 91 90
============ ============
17. Trade and other receivables
31 December 31 December
'17 '16
GBP'000 GBP'000
Trade debtors 2,626 2,530
Other debtors 458 469
Prepayments 283 351
Total 3,367 3,350
============ ============
Amounts falling
due after more
than one year
included above
are: 424 424
The maximum exposure to credit risk at the balance sheet date is the carrying amount of receivables detailed above. The Group does not hold any collateral as security.
The Directors do not believe that there is a significant concentration of credit risk within the trade receivables balance. As of 31 December 2017, trade receivables of GBP784k (2016: GBP345k) were past due but not impaired.
The ageing of trade debtors:
Current 0 - 31 - 61 Days Total
30 Days 60 Days +
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
31 December
'17 1,842 277 244 263 2,626
31 December
'16 2,185 96 72 177 2,530
18. Cash and cash equivalents
31 December 31 December
'17 '16
GBP'000 GBP'000
Cash at bank
and on hand 2,661 1,584
2,661 1,584
============ ============
19. Trade and other payables
31 December 31 December
'17 '16
GBP'000 GBP'000
Trade creditors 568 514
Other creditors 1,767 1,625
Social Security
and other taxes 489 395
Accrued expenses 2,003 1,404
Deferred income 293 328
Trade and other
payables 5,120 4,266
Corporation tax (46) (146)
------------ ------------
Total 5,074 4,120
============ ============
20. Other borrowings
31 December 31 December
'17 '16
GBP'000 GBP'000
Bank loan:
Less than one
year - 1,000
Greater than
one year - 200
- 1,200
============== ============
As at 31 December 2017, SpaceandPeople plc had drawn down GBPnil (2016: GBP1.2 million) of its agreed bank facility of GBP1.25 million (2016: GBP2.0 million), GBP0.25 million of which expires in July 2018 and the other GBP1.0 million expires in July 2019. As at 31 December 2016, the Group was in technical breach of its covenants in relation to its facilities. This breach has now been resolved and there are no restrictions on the Groups ability to utilise its bank facilities.
21. Financial instruments and risk management
The Group has no material financial instruments other than cash, current receivables and liabilities, in both this and the prior period, all of which arise directly from its operations. The net fair value of its financial assets and liabilities is the same as their carrying value as detailed in the balance sheet and related notes.
Credit risk - The Group's credit risk relates to its receivables and is managed by undertaking regular credit evaluations of its customers.
Liquidity risk - The Group operates a cash-generative business and holds net funds. The Directors consider the funding structure to be adequate for the Group's current funding requirements and this is expected to strengthen further during 2018.
Borrowing facilities - The Group has agreed facilities of GBP1.25 million, of which GBPnil was utilised at the year end.
These facilities are secured by an omnibus guarantee and set off agreement, secured by an unlimited debenture incorporating a bond and floating charge.
Financial assets - These comprise cash at bank and in hand. All bank deposits are floating rate.
Financial liabilities - These include short-term creditors and a revolving credit facility of GBP1million, of which GBPnil was utilised at the year end. All financial liabilities will be financed from existing cash reserves and operating cash flows.
Foreign currency risk - The Group is exposed to foreign exchange risk primarily from Euros due to its German operations and Euro denominated licensing income as detailed in note 4 Segmental Reporting. The Group monitors its foreign currency exposure and manages the position where appropriate. In addition, the Group has investments in a subsidiary in India.
22. Operating lease commitments
At the period end date, SpaceandPeople plc had outstanding commitments for future lease payments which fall due as follows:
31 December 31 December
'17 '16
GBP'000 GBP'000
Within 1 year 357 863
Between 2 and
5 years inclusive 358 499
23. Called up share capital
Allotted, issued and fully 31 December 31 December
paid '17 '16
Class Nominal
value
Ordinary 1p GBP 195,196 195,196
Number 19,519,563 19,519,563
24. Related party transactions
Compensation of key management personnel
Key management personnel of the Group are defined as those persons having authority and responsibility for the planning, directing and controlling the activities of the Group, directly or indirectly. Key management of the Group are therefore considered to be the directors of SpaceandPeople plc. There were no transactions with the key management, other than their emoluments, which are set out in the remuneration report.
25. Earnings per share
12 months to 12 months to
31 December 31 December
'17 '16
Pence per share Pence per share
Basic earnings per
share
Before non-recurring
costs 4.8p 0.3p
After non-recurring
costs 4.8p (3.38p)
Diluted earnings per
share
Before non-recurring
costs 4.3p 0.3p
After non-recurring
costs 4.3p (3.12p)
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.
Basic earnings per share
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
12 months to 12 months to
31 December 31 December
'17 '16
GBP'000 GBP'000
Profit after tax for
the period attributable
to 933 (660)
owners of the Company
Profit after tax for
the period before
non-recurring costs
attributable to owners
of the company 933 67
12 months to 12 months to
31 December 31 December
'17 '16
'000 '000
Weighted average number
of ordinary shares 19,520 19,520
for the purposes of
basic earnings per
share
Diluted earnings per share
The earnings and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:
12 months to 12 months to
31 December 31 December
'17 '16
GBP'000 GBP'000
Profit after tax for
the period attributable
to 933 (660)
owners of the Company
Profit after tax for
the period before non-recurring
costs attributable
to owners of the company 933 67
12 months to 12 months to
31 December 31 December
'17 '16
'000 '000
Weighted average number
of ordinary shares 21,840 21,169
for the purposes of
diluted earnings per
share
The weighted average number of ordinary shares for the purposes of diluted earnings per share reconciles to the weighted average number of ordinary shares used in the calculation of basic earnings per share as follows.
12 months to 12 months to
31 December 31 December
'17 '16
'000 '00
Weighted average number
of shares in issue 19,520 19,520
during the period
Weighted average number
of ordinary shares 2,320 1,649
used in the calculation
of basic earnings
per
share deemed to be
issued for no
consideration in respect
of employee options
Weighted average number
of ordinary shares 21,840 21,169
used in the calculation
of diluted earnings
per
share
26. Share options
The Group has established a share option scheme that senior executives and certain eligible employees are entitled to participate in at the discretion of the Board which is advised on such matters by the Remuneration Committee.
In aggregate, share options have been granted under the share option scheme over 1,885,522 ordinary shares exercisable within the dates and at the exercise prices shown below, being the market value at the date of the grant.
Date of grant Number Option period Price
12 January 838,650 12 January 2018 - 47.4p
2015 12 January 2025
31 March 2016 646,872 31 March 2019 - 31 61.0p
March 2026
27 March 2017 400,000 29 March 2020 - 27 22.0p
March 2027
The movement in the number of options outstanding under the scheme over the period is as follows:
12 months 12 months
to to
31 December 31 December
'17 '16
Number of options outstanding
as at the beginning of the
period 1,557,235 985,307
Granted 400,000 700,000
Lapsed - (20,307)
Forfeited (71,713) (107,765)
------------ ------------
Number of options outstanding
as at the end of the period 1,885,522 1,557,235
In total, 1,885,522 options were outstanding at 31 December 2017 (1,557,235 at 31 December 2016) with a weighted average exercise price of 46.7p (53.1p at 31 December 2016).
The total share-based payment charge for the year, calculated in accordance with IFRS2 on share-based payments, was GBP8,400 (2016: GBPnil).
27. Save As You Earn Scheme
The Group has two Save As You Earn ("SAYE") schemes that all UK based employees are entitled to participate in. The schemes both run for three years. The first scheme runs from 1 June 2015 and at the end of the term, participants will have the opportunity to buy shares in the Company at a price of 46p, which is a 20 percent discount on the closing share price on 2 April 2015. The second scheme runs from 1 July 2017 with the opportunity to buy shares at a price of 19.5p, a 20% discount on the average closing share price on the three working days from 20 to 24 April 2017.
In aggregate, share options have been granted under the SAYE scheme over 675,200 ordinary shares exercisable within the dates and at the exercise prices shown below, being the market value at the date of the grant.
Date of grant Number Option period Price
1 June 2018 - 30 November
28 April 2015 21,677 2018 46.0p
1 July 2020 - 31 December
18 May 2017 653,523 2020 19.5p
The movement in the number of options outstanding under the scheme over the period is as follows:
12 months 12 months
to to
31 December 31 December
'17 '16
Number of options outstanding
as at the beginning of the
period 147,284 257,863
Granted 688,783 -
Forfeited (160,867) (110,579)
------------ ------------
Number of options outstanding
as at the end of the period 675,200 147,284
In total, 675,200 options were outstanding at 31 December 2017 (147,284 at 31 December 2016) with an average exercise price of 20.5p (46.0p at 31 December 2016).
The total share-based payment charge for the year, calculated in accordance with IFRS2 on share-based payments, was GBP42,016 (2016: GBPnil).
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GMGZFFFKGRZM
(END) Dow Jones Newswires
March 26, 2018 02:00 ET (06:00 GMT)
1 Year Spaceandpeople Chart |
1 Month Spaceandpeople 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
