Source - RNS
RNS Number : 4732I
Churchill China PLC
31 August 2016
 

 For immediate release

31 August 2016

 

 

 

 

CHURCHILL CHINA plc

("Churchill China" or the "Company" or the "Group")

 

INTERIM RESULTS

For the six months ended 30 June 2016

 

Churchill China plc (AIM: CHH), the manufacturer and global distributor of performance ceramic and related products to hospitality and retail markets, is pleased to announce its interim results for the six months ended 30 June 2016.

 

Key Highlights:

 

·     Group revenue up 12% to £24.0m (2015: £21.4m)

-    Hospitality total revenue growth 15%

·     Operating profit up 30% to £2.0m (2015: £1.6m)

·     Profit before tax up 29% to £2.0m (2015: £1.6m)

·     Basic earnings per share up 30% to 14.8p (2015: 11.4p)

·     Interim dividend up 12% to 6.3p (2015: 5.6p)

·     Capital investment increased to £1.6m (2015: £0.6m)

·     Cash and deposit balances of £9.6m (June 2015: £8.7m)

 

Alan McWalter, Chairman of Churchill China, commented:

 

"Churchill has delivered a strong performance in the first half of the year and the Board remains confident that our strategies remain appropriate for the future progress of the business.

 

"Our Hospitality business has once more reported record revenues.

 

"We are confident that we will meet our expectations for the full year."

 

For further information, please contact:

 

Churchill China plc

Tel: 01782 577566

David O'Connor / David Taylor

 

 

 

Buchanan

Tel: 020 7466 5000

Mark Court / Sophie Cowles / Jane Glover

 

 

 

N+1 Singer

Tel: 020 7496 3000

Richard Lindley

 

 

 

Our interim results will be available today on the Company's website: www.churchill1795.com. Copies of the Interim Report will be sent to shareholders in due course.

 

 

CHAIRMAN'S STATEMENT

 

Introduction

 

I am pleased that we can again report a strong improvement in our performance over the first six months of the year. We have made good progress against our long term targets and have successfully completed a number of projects which we expect to contribute to the further development of the Company. Our Hospitality business has once more reported record revenues. This progress is attributable to the targeted development of export markets and increased sales of added value products.  Whilst we anticipate that the economic environment looking forward is likely to be more uncertain, we believe that our business is well positioned to respond positively to changing conditions within our markets.

 

Financial Review

 

Total revenues increased by 12% to £24.0m (2015: £21.4m) or 10% at constant exchange rates with exports increasing by over 30%. Overseas sales now represent over half of our business.

 

Gross margins improved as a result of increased revenues, an improved mix of products and more favourable exchange rates. The exchange rate benefit to revenue was £0.5m in comparison with 2015, principally from a stronger Euro, although the overall effect on operating profit was lower at £0.1m as currency hedges were revalued following the fall of Sterling towards the end of the first half year. We have retained our traditional operating efficiency and high standards of service.

 

Operating profit increased by 30% to £2.0m (2015: £1.6m). Operating margins improved by 1.2% to 8.4% (2015: 7.2%).

 

Earnings before interest, tax, depreciation and amortisation increased by 18% to £2.8m (2015: £2.4m).

 

Profit before tax rose by 29% to £2.0m (2015: £1.6m), largely attributable to the improved operating performance.

 

Earnings per share improved by 30% to 14.8p (2015: 11.4p).

 

Operating cash generation improved against a low comparative in 2015, largely as a result of lower working capital demands. Operating cash generation was £1.6m (2015: £0.4m). As normal in the first half year, we rebuilt inventory levels to support our service promise in the seasonally stronger second half year. At the end of the period, net cash and deposit balances were £9.6m (June 2015: £8.7m).

 

We have continued to invest in our business to deliver additional capacity for higher value product for our Hospitality business. Capital investment increased to £1.6m (2015: £0.6m). We have successfully completed a 28,000 square feet extension to our factory and commissioned additional  manufacturing capacity. Further investment in the UK is planned over the remainder of 2016 and into 2017, building on the progress we have made to date.

 

 

 

Dividend

 

We recognise the importance to our shareholders of growing dividends. The Board is declaring a 12.5% increase in the interim dividend to 6.3p per share (2015: 5.6p). This increase reflects our policy of linking dividends growth to increased profitability whilst maintaining appropriate levels of dividend cover. The interim dividend will be paid on 6 October 2016 to shareholders on the register on 9 September 2016.

 

Markets

 

Hospitality

 

Total sales to Hospitality customers increased by £2.7m (15%) to £20.5m (2015: £17.8m). Contribution to Group operating profits rose by 30% to £3.7m from £2.9m.

 

We have delivered an exceptional performance in our export markets in first half of the year. Overall export revenue growth was over 30% or £2.6m in absolute terms. We made good progress in all our geographic market sectors. Whilst this increase was achieved with support from more favourable exchange rates, the majority of the growth reflects the progressive investment we have made in both market and product development over several years.

 

Performance in the UK was more restrained as market growth, particularly in larger accounts, moderated. We continue to make progress and remain satisfied with the returns delivered from the market and the leading position we hold.

 

Much of our success this year can be attributed to a strong programme of new product development. Our Stonecast range has continued to perform well and the initial response to further new introductions in 2016 has been good.

 

Retail

 

Although revenues declined, our Retail business has performed well in the first half. In accordance with our strategy, sales of licensed ranges reduced and were largely replaced by sales of UK manufactured Churchill products.

 

Revenue declined by £0.1m to £3.5m. The effect on profitability of this reduction was offset by an improvement in margins and control of overheads. As a consequence, contribution to Group profit rose slightly to £0.3m (2015: £0.2m).

 

Operations

 

Manufacturing and logistics operations have continued to deliver well against high expectations. We have made further investments in both people and productive capacity. Our strategy places heavy demands on our operations to deliver new products, to meet high service requirements and maintain operational efficiency. Our products meet the highest standards for performance and design.

 

Capital expenditure increased during the first half year, with much of the investment associated with the construction of new buildings. We expect that capital expenditure on machinery will continue over the next 18 months. We have reached the half year well positioned to meet the expected seasonal increase in demand in the second half year.

 

 

People

 

Our market expansion and the increased flexibility and capacity in our operations is being underpinned by increased focus on the development of our workforce at all levels. The skills and capabilities of our staff are the cornerstone of our current and future success.

 

We have a programme of continuous improvement and have supplemented the training and development of existing employees with targeted recruitment to acquire specific skills and experience.

 

At Board level we are pleased to welcome Angela Bromfield as a non executive Director and we believe that she will provide additional support and guidance to the long term growth of the Company.

 

Prospects

 

Churchill has delivered a strong performance in the first half of the year and the Board remains confident that our strategies remain appropriate for the future progress of the business.

 

We believe that the increased scale of our Export business and our record of successful market and product development will provide further growth opportunities in line with our established strategy. We anticipate that the UK may continue to be affected by increased levels of uncertainty following the result of the EU referendum, but believe we hold a strong position in an attractive market.

 

Our central aim is to develop our business steadily for the long term, meeting customer requirements across diverse markets and maintaining a robust financial position to allow progressive investment across business cycles.

 

We are confident that we will meet our expectations for the full year.

 

 

Alan McWalter

Chairman

30 August 2016

 

Churchill China plc

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

 

 

 

for the six months ended 30 June 2016

 

 

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

Six months to

 

Six months to

 

Twelve months to

 

 

 

 

30 June 2016

 

30 June 2015

 

31 December 2015

 

 

 

 

£000

 

£000

 

£000

 

 

 

Note

 

 

 

 

 

Revenue

 

 

 

23,980

 

21,449

 

46,829

 

 

 

 

 

 

 

 

 

Operating profit

 

 

1

2,011

 

1,549

 

4,959

 

 

 

 

 

 

 

 

 

Share of results of associate company

 

62

 

75

 

135

Finance income

 

 

2

46

 

41

 

82

Finance costs

 

 

2

(75)

 

(84)

 

(162)

 

 

 

 

 

 

 

 

 

Profit before income tax

 

 

2,044

 

1,581

 

5,014

 

 

 

 

 

 

 

 

 

Income tax expense

 

3

(417)

 

(341)

 

(928)

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

1,627

 

1,240

 

4,086

 

 

 

 

 

 

 

 

 

                   

 

 

 

 

 

 

Pence per

 

Pence per

 

Pence per

 

 

 

 

share

 

share

 

share

 

 

 

 

 

 

 

 

 

Basic earnings per ordinary share

 

4

14.8

 

11.4

 

37.3

 

 

 

 

 

 

 

 

 

Diluted basic earnings per ordinary share

4

14.7

 

11.2

 

36.9

 

 

 

 

 

 

 

 

 

All the above figures relate to continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statement of Comprehensive Income

for the six months ended 30 June 2016

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

Six months to

 

Six months to

 

Twelve months to

 

 

 

 

30 June 2016

 

30 June 2015

 

31 December 2015

 

 

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

Other comprehensive income/(expense)

 

 

 

 

 

 

Items that will not be reclassified to profit and loss:

 

 

 

 

 

 Actuarial gain on retirement benefit obligations

 

-

 

-

 

104

Items that may be reclassified subsequently to profit

 

 

 

 

 

 and loss

 

 

 

 

 

 

 

 

 Impact of change in UK tax rate on deferred tax on

-

 

-

 

24

  revaluation reserve

 

 

 

 

 

 

 

 

 Exchange differences

 

 

35

 

(3)

 

16

 

 

 

 

 

 

 

 

 

Other comprehensive income/(expense)

 

35

 

(3)

 

144

 

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

1,627

 

1,240

 

4,086

 

 

 

 

 

 

 

 

 

 

1,662

 

1,237

 

4,230

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

Equity holders of the Company

 

 

1,662

 

1,237

 

4,230

                       

 

 

 

 

 

Churchill China plc

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

as at 30 June 2016

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

30 June

 

30 June

 

31 December

 

 

 

 

2016

 

2015

 

2015

 

 

 

 

£000

 

£000

 

£000

Assets

 

 

 

 

 

 

 

 

Non Current assets

 

 

 

 

 

 

 

Property, plant and equipment

 

 

15,106

 

14,026

 

14,046

Intangible assets

 

 

 

57

 

53

 

59

Investment in associates

 

 

1,293

 

1,171

 

1,231

Deferred income tax assets

 

 

791

 

1,002

 

848

 

 

 

 

17,247

 

16,252

 

16,184

Current assets

 

 

 

 

 

 

 

 

Inventories

 

 

 

8,980

 

8,942

 

8,360

Trade and other receivables

 

 

8,466

 

8,457

 

8,648

Other financial assets

 

 

3,000

 

2,250

 

2,500

Cash and cash equivalents

 

 

6,631

 

6,421

 

9,307

 

 

 

 

27,077

 

26,070

 

28,815

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

44,324

 

42,322

 

44,999

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Trade and other payables

 

 

(8,170)

 

(7,516)

 

(8,721)

Current income tax liabilities

 

 

(578)

 

(490)

 

(580)

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

(8,748)

 

(8,006)

 

(9,301)

 

 

 

 

 

 

 

 

 

Non current liabilities

 

 

 

 

 

 

 

Retirement benefit obligations

 

 

(3,912)

 

(4,715)

 

(3,837)

Deferred income tax liabilities

 

 

(948)

 

(1,070)

 

(936)

 

 

 

 

 

 

 

 

 

Total non current liabilities

 

 

(4,860)

 

(5,785)

 

(4,773)

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 

(13,608)

 

(13,791)

 

(14,074)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets

 

 

 

30,716

 

28,531

 

30,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

Issued share capital

 

 

1,103

 

1,101

 

1,101

Share premium account

 

 

2,348

 

2,348

 

2,348

Treasury shares

 

 

 

(575)

 

(10)

 

(144)

Retained earnings

 

 

 

26,409

 

23,740

 

26,181

Other reserves

 

 

 

1,431

 

1,352

 

1,439

 

 

 

 

30,716

 

28,531

 

30,925

 

 

 

 

 

 

 

 

Churchill China plc

 

 

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

 

 

 

 

 

 

as at 30 June 2016

 

 

 

 

 

 

 

 

 

 

 

Retained

Share

Share

Treasury

Other

 

 

 

 

 

earnings

capital

premium

shares

reserves

Total

 

 

 

 

£000

£000

£000

£000

£000

£000

 

Balance at 1 January 2015

 

23,654

1,096

2,348

(224)

1,532

28,406

 

Comprehensive income

 

 

 

 

 

 

 

 

 Profit for the period

 

 

1,240

-

-

-

-

1,240

 

Other comprehensive income

 

 

 

 

 

 

 

 

 Depreciation transfer - gross

 

6

-

-

-

(6)

-

 

 Depreciation transfer - tax

 

(1)

-

-

-

1

-

 

Currency translation

 

-

-

-

-

(3)

(3)

 

Total comprehensive income

 

1,245

-

-

-

(8)

1,237

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

 Dividends

 

 

(1,200)

-

-

-

-

(1,200)

 

 Proceeds of share issue

 

-

5

-

-

-

5

 

 Share based payment

 

250

-

-

-

(172)

78

 

 Treasury shares

 

 

(209)

-

-

214

-

5

 

Total transactions with owners

 

(1,159)

5

-

214

(172)

(1,112)

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2015

 

23,740

1,101

2,348

(10)

1,352

28,531

 

Comprehensive income

 

 

 

 

 

 

 

 

Profit for the period

 

 

2,846

-

-

-

-

2,846

 

Other comprehensive income

 

 

 

 

 

 

 

 

Depreciation transfer - gross

 

6

-

-

-

(6)

-

 

Depreciation transfer - tax

 

(1)

-

-

-

1

-

 

Deferred tax - change in rate

 

-

-

-

-

24

24

 

Remeasurements of post employment

 

 

 

 

 

 

 

benefit obligation - net

 

104

-

-

-

-

104

 

Currency translation

 

-

-

-

-

19

19

 

Total comprehensive income

 

2,955

-

-

-

38

2,993

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

Dividends

 

 

(616)

-

-

-

-

(616)

 

Proceeds of share issue

 

-

-

-

5

-

5

 

Share based payment

 

-

-

-

-

49

49

 

Deferred tax - Share based payment

102

-

-

-

-

102

 

Treasury shares

 

 

-

-

-

(139)

-

(139)

 

Total transactions with owners

 

(514)

-

-

(134)

49

(599)

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2015

 

26,181

1,101

2,348

(144)

1,439

30,925

 

Comprehensive income

 

 

 

 

 

 

 

 

Profit for the period

 

 

1,627

-

-

-

-

1,627

 

Other comprehensive income

 

 

 

 

 

 

 

 

Depreciation transfer - gross

 

6

-

-

-

(6)

-

 

Depreciation transfer - tax

 

(1)

-

-

-

1

-

 

Currency translation

 

-

-

-

-

35

35

 

Total comprehensive income

 

1,632

-

-

-

30

1,662

 

 

 

 

 

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

 

 

 

Dividends

 

 

(1,395)

-

-

-

-

(1,395)

 

Proceeds of share issue

 

-

2

 

2

 

4

 

Share based payment

 

117

-

-

-

(38)

79

 

Deferred tax - Share based payment

16

-

-

-

-

16

 

Treasury shares

 

 

(142)

-

-

(433)

-

(575)

 

 

 

 

 

 

 

 

 

 

 

Total transactions with owners

 

(1,404)

2

-

(431)

(38)

(1,871)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 30 June 2016

 

26,409

1,103

2,348

(575)

1,431

30,716

 

 

 

 

Churchill China plc

 

 

 

 

 

 

 

 

Consolidated Cash Flow Statement

 

 

 

 

 

 

 

for the six months ended 30 June 2016

 

 

 

 

 

 

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

 

Six months to

 

Six months to

 

Twelve months to

 

 

 

 

 

30 June 2016

 

30 June 2015

 

31 December 2015

 

 

 

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

 

 

 

 

Cash flow from operating activities

 

 

 

 

 

 

 

Cash generated from operations (note 5)

 

1,634

 

355

 

5,319

 

Interest received

 

 

 

46

 

41

 

82

 

Interest paid

 

 

 

-

 

-

 

(1)

 

Income tax paid

 

 

 

(332)

 

(434)

 

(922)

 

 

 

 

 

 

 

 

 

 

 

Net cash generated from / (used by) operating activities

1,348

 

(38)

 

4,478

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(1,541)

 

(584)

 

(1,214)

 

Proceeds on disposal of property, plant and equipment

33

 

28

 

49

 

Purchases of intangible assets

 

 

(51)

 

(5)

 

(27)

 

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

(1,559)

 

(561)

 

(1,192)

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

Issue of ordinary shares

 

 

4

 

10

 

10

 

Purchase of treasury shares

 

 

(575)

 

-

 

(134)

 

Dividends paid

 

 

 

(1,395)

 

(1,200)

 

(1,816)

 

Sale of other financial assets

 

 

2,000

 

1,500

 

1,500

 

Purchase of other financial assets

 

(2,500)

 

(2,250)

 

(2,500)

 

 

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

(2,466)

 

(1,940)

 

(2,940)

 

 

 

 

 

 

 

 

 

 

 

Net (decrease) / increase in cash and cash equivalents

 

(2,677)

 

(2,539)

 

346

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at the beginning of the year

9,307

 

8,961

 

8,961

 

 

 

 

 

 

 

 

 

 

 

Exchange losses on cash and cash equivalents

1

 

(1)

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at the end of the year

6,631

 

6,421

 

9,307

 

                                       

 

 

 

 

 

1. Segmental analysis

          for the six months ended 30 June 2016

 

 

 

 

 

Hospitality

Retail

Unallocated

Group

 

 

 

 

£000

£000

£000

£000

Six months to 30 June 2016

 

 

 

 

 

 

Revenue

 

 

 

20,527

3,453

23,980

 

 

 

 

 

 

 

 

Contribution to group overheads excluding depreciation

4,267

341

(1,842)

2,766

Depreciation

 

 

 

(592)

(47)

(116)

(755)

 

 

 

 

 

 

 

 

Operating profit

 

 

 

3,675

294

(1,958)

2,011

 

 

 

 

 

 

 

 

Share of results of associate company

 

 

 

 

62

Finance income

 

 

 

 

 

 

46

Finance costs

 

 

 

 

 

 

(75)

Profit before income tax

 

 

 

 

 

2,044

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

(417)

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

 

1,627

 

 

 

 

 

 

 

 

Six months to 30 June 2015

 

 

 

 

 

 

Revenue

 

 

 

17,849

3,600

-

21,449

 

 

 

 

 

 

 

 

Contribution to group overheads excluding depreciation

3,383

325

(1,360)

2,348

Depreciation

 

 

 

(563)

(116)

(120)

(799)

 

 

 

 

 

 

 

 

Operating profit

 

 

 

2,820

209

(1,480)

1,549

 

 

 

 

 

 

 

 

Share of results of associate company

 

 

 

 

75

Finance income

 

 

 

 

 

 

41

Finance costs

 

 

 

 

 

 

(84)

Profit before income tax

 

 

 

 

 

1,581

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

(341)

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

 

1,240

 

 

 

 

 

 

 

 

Twelve months to 31 December 2015

 

 

 

 

 

Revenue

 

 

 

38,859

7,970

-

46,829

 

 

 

 

 

 

 

 

Contribution to group overheads excluding depreciation

8,182

1,121

(2,849)

6,454

Depreciation

 

 

 

(1,033)

(225)

(237)

(1,495)

 

 

 

 

 

 

 

 

Operating profit

 

 

 

7,149

896

(3,086)

4,959

 

 

 

 

 

 

 

 

Share of results of associate company

 

 

 

 

135

Finance income

 

 

 

 

 

 

82

Finance costs

 

 

 

 

 

 

(162)

Profit before income tax

 

 

 

 

 

5,014

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

(928)

 

 

 

 

 

 

 

 

Profit for the period

 

 

 

 

 

4,086

 

2. Finance income and costs

 

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

Six months to

 

Six months to

 

Twelve months to

 

 

 

 

30 June 2016

 

30 June 2015

 

31 December 2015

 

 

 

 

£000

 

£000

 

£000

Finance income

 

 

 

 

 

 

 

 

Other interest receivable

 

 

46

 

41

 

82

 

 

 

 

 

 

 

 

 

Finance income

 

 

 

46

 

41

 

82

 

 

 

 

 

 

 

 

 

Finance cost

 

 

 

 

 

 

 

 

Interest on pension scheme

 

 

(75)

 

(84)

 

(161)

Other interest

 

 

 

-

 

-

 

(1)

 

 

 

 

 

 

 

 

 

Finance costs

 

 

 

(75)

 

(84)

 

(162)

 

 

The interest cost arising from pension schemes is a non cash item.

 

 

 

3. Income tax expense

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

Six months to

 

Six months to

 

Twelve months to

 

 

30 June 2016

 

30 June 2015

 

31 December 2015

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

Current taxation

 

332

 

226

 

803

Deferred taxation

 

85

 

115

 

125

 

 

 

 

 

 

 

Income tax expense

417

 

341

 

928

 

 

4. Earnings per ordinary share                                                                                                                                                                                                                                                                         

Basic earnings per ordinary share is based on the profit after taxation of £1,627,000 (June 2015: £1,240,000, December 2015: £4,086,000) and on 10,982,793 (June 2015: 10,914,230, December 2015: 10,956,828) ordinary shares, being the weighted average number of ordinary shares in issue during the period.

Diluted basic earnings per ordinary share is based on the profit after taxation of £1,627,000 (June 2015: £1,240,000, December 2015: £4,086,000) and on 11,077,581 (June 2015: 11,021,343, December 2015: 11,064,046) ordinary shares, being the weighted average number of ordinary shares in issue during the year of 10,982,793 (June 2015: 10,914,230, December 2015: 10,956,828) increased by 94,788 (June 2015: 107,113, December 2015: 107,218) shares, being the weighted average number of ordinary shares which would have been issued if the outstanding options to acquire shares in the Group had been exercised at the average price during the period.

Adjusted earnings per ordinary share is based on the profit on ordinary activities after taxation and adjusted to take into account the exceptional profit on disposal of fixed assets.

 

 

 

5. Reconciliation of operating profit to net cash inflow from continuing activities

 

 

 

 

Unaudited

 

Unaudited

 

Audited

 

 

 

 

Six months to

 

Six months to

 

Twelve months to

 

 

 

 

30 June 2016

 

30 June 2015

 

31 December 2015

 

 

 

 

£000

 

£000

 

£000

Cash flow from operating activities

 

 

 

 

 

 

Operating profit

 

 

 

2,011

 

1,549

 

4,959

Adjustments for

 

 

 

 

 

 

 

 

Depreciation

 

 

 

755

 

799

 

1,495

Loss on disposal of property, plant and equipment

3

 

5

 

4

Charge for share based payment

 

 

79

 

78

 

128

Decrease in retirement benefit obligations

 

-

 

(43)

 

(758)

Changes  in working capital

 

 

 

 

 

 

 

Inventory

 

 

 

(620)

 

(669)

 

(86)

Trade and other receivables

 

 

228

 

(205)

 

(371)

Trade and other payables

 

 

(822)

 

(1,159)

 

(52)

 

 

 

 

 

 

 

 

 

Cash inflow from operations

 

 

1,634

 

355

 

5,319

 

6. Basis of preparation and accounting policies                                                                                                                   

The interim financial information for the period to 30 June 2016 has not been audited or reviewed and does not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The Company's statutory accounts for the year ended 31 December 2015, prepared in accordance with accounting standards adopted for use in the European Union (International Financial Reporting Standards - IFRS), have been delivered to the Registrar of Companies; the report of the auditors on these accounts was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

The interim financial statements have been prepared in accordance with IFRS as adopted by the European Union, IFRIC interpretations and the Companies Act 2006 applicable to companies reporting under IFRS, under the historical cost convention as modified by the revaluation of land and buildings, available for sale financial assets, and financial assets and liabilities (including derivative instruments) at fair value through the profit and loss account. The same accounting policies, presentation and methods of computation are followed in the interim financial statements as were applied in the Group's last audited financial statements.                                                                                                                  

The figures included in the statements in respect of Retirement Benefit Obligations are those calculated under IAS 19 (Revised) as at 31 December 2015 as adjusted for notional interest charges derived at that date and cash payments in the period to 30 June 2016. Asset and liability figures have not been recalculated to reflect changes in market conditions since 31 December 2015. The next full IAS 19 Revised calculation will be undertaken at 31 December 2016.                                                                                                                       

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR LLFSRTAIIVIR