Source - RNS
RNS Number : 1360J
Hydrogen Group PLC
07 September 2016
 

 

 

Hydrogen Group Plc

7 September 2016
 

UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2016

 

The Board of Hydrogen Group plc ("Hydrogen" or the "Group") (AIM: HYDG) announces its unaudited results for the half year ended 30 June 2016.

 

Financial and Operating Highlights

 

·    Net Fee Income ("NFI") declined by 12% (12% on a constant currency basis) to £8.9m (H1 2015: £10.1m). However, the Group has moved back into growth with a 6% (3% on a constant currency basis) increase in NFI on the second half of 2015 of £8.5m which is due primarily to:

·      31% growth in EMEA Life Science to £1.7m (H2 2015: £1.3m)

·      8% growth in EMEA Business Transformation to £2.6m (H2 2015: £2.4m)

·      Asia NFI up 18% to £1.3m (H2 2015: £1.1m).

·      Contract NFI margin increased to 9.6% (H2 2015: 9.3%)

·      EMEA Legal Practice held back in the lead up to the EU Referendum with NFI down 12.5% to £1.4m (H2 2015: £1.6m)

·      EMEA Energy NFI down 25% to £0.6m (H2 2015: £0.8m)

·      US Business building a Life Science contract base with NFI up to £0.2m (H2 2015 £0.1m)

·    Administration costs, which are predominantly based in GBP, down 15% to £8.7m (H1 2015: £10.2m) and 6% down on H2 2015 administration costs of £9.0m

·    Selective hiring to support growth. Headcount increasing 6% to 210 (31 December 2015: 199)

·    Operating profit of £0.3m (H1 2015: Operating loss before exceptional items £0.1m)

·    Net cash position of £1.0m at 30 June 2016 (31 December 2015: £2.6m and 30 June 2015: £0.1m)

 

Commenting, Ian Temple, CEO of Hydrogen Group plc said:
 

"The first half of 2016 has seen a stabilisation of the business and a move back into NFI growth compared to H2 2015.  We have started hiring in the areas where we have identified sustainable growth opportunities.

 

We are implementing a new vision for the business focussing resource on building market leading niche businesses. The roll out will continue into Q3 but is already generating results."

 

Enquiries:

 

Hydrogen Group plc

020 7090 7702

Ian Temple, CEO

Colin Adams, CFO

 


Shore Capital (NOMAD and Broker)

020 7408 4080

Bidhi Bhoma

Edward Mansfield


 

Notes to the editor

Empowering careers. Powering business

Our clients believe that an organisation's greatest asset is its people so we work hard to ensure that we always match people with the right role.

Using our global platform we have placed people in over 50 countries in the last year, empowering thousands of people in their careers and powering the world's leading businesses.

 

Overview

 

The first half of 2016 has seen a stabilisation of the business and a move back into NFI growth over H2 2015 with the exception of Energy and Legal. The benefits of the changes made in 2015 are now coming through. In Energy, upstream Oil and Gas continues to be challenging and revenues continued to decline but we have structured the operation so that it remains profitable. Should the oil price recover and demand for our services increase, we will be in a position to react quickly and take advantage of any upswing in the market. We are implementing a new vision for the business which focuses resource on building market leading niche businesses.

 

Financial Highlights

 

Group revenue for the period declined by 9% (11% in constant currency) to £59.4m (H1 2015: £65.9m). Group NFI declined by 12% (12% in constant currency) to £8.9m (H1 2015: £10.1m). The Group has moved back into growth with a 6% NFI increase on the second half 2015 NFI of £8.5m.

 

44% of the Group's NFI for this period was denominated in currencies other than Sterling (H1 2015: 38%), with the Euro, Singapore Dollars, United States Dollars, Australian Dollars and Malaysian Ringgit being the most significant. Foreign currency income, where applicable is naturally hedged against foreign currency expenditure. The Euro is the most significant currency and any excess over expenditure is hedged by drawing down on the Group's invoice finance facility and converting into sterling on the same day.

 

The split between contract and permanent NFI for H1 2016 was 60% contract; 40% permanent (H1 2015: 55% Contract, 45% Permanent). Contract margin continued its incremental improvement as we have reduced the number of lower margin deals on our contract book. The Group achieved a contract margin of 9.6% in H1 2016 (H1 2015: 9.1% and H2 2015: 9.3%).

 

There has been a change to how we report segmental analysis. Previously the operating segments were Professional Support Services and Technical and Scientific. As part of the restructure, current management reporting focuses on performance of our EMEA (including USA) and APAC businesses. The new segmental analysis reflects this. Within these operating segments are the individual practices; Technology, Finance, Energy, Legal, Life Sciences and Business Transformation.

 

In EMEA the Life Sciences practice showed 31% growth to £1.7m (H2 2015 £1.3m). The contract business was the main driver with improved deal flow from its client base plus new client wins. Business Transformation showed respectable growth of 8% to £2.6m (H2 2015: £2.4m) driven by growth with existing and new clients in both our London and Edinburgh offices.  Legal practice permanent activity was soft in the lead up to the EU Referendum as clients held back on making decisions on placements until after the outcome. NFI was down 12.5% to £1.4m when compared to a typically stronger H2 2015 of £1.6m but was flat compared to H1 2015 of £1.4m. The Technology practice has just started to move into growth as we have refocussed its business proposition but NFI was broadly similar to H2 2015 at £0.6m. In the US we started a Life Science contract business in 2015 and this has really gained traction offsetting the decline in Energy revenues. NFI has increased 100% to £0.2m (H2 2015: £0.1m)

 

 

Asia has shown growth in the first half of 2016 compared to H2 in 2015. NFI increased 18% to £1.3m (H2 2015: £1.1m). Main contributors to growth were the Energy practice, and the Business Transformation practice where the contractor book, started in 2015, is building momentum. NFI for Australia is down 25% to £0.3m (H2 2015: £0.4m). Action was taken to reduce the cost base which has helped the operation to move into profit in 2016.

 

 

We implemented changes throughout 2015 and we have now positioned the practices, with the exception of Energy, for growth. Headcount at the end of 2015 was 199 (Sales: 143, Operations: 56). We have started hiring in the areas where we have identified sustainable growth opportunities. Headcount at 30 June 2016 increased 6% to 210 (Sales: 155, Operations: 55). During 2015 we reduced operating costs to bring practices back into profit. Energy remained profitable as a result, even though the NFI in EMEA Energy was down 25% to £0.6m (H2 2015: £0.8m). Administration costs, which are predominantly based in GBP, for the six-month period were £8.7m (H1 2015: £10.2m), 15% down on the comparative period and 6% down on the second half of 2015 (H2 2015: £9.0m). With the EU Referendum in favour of an exit from the EU, the currency swing, particularly the Euro has generated a foreign exchange gain for the six-month period of £0.14m (H1 2015: £(0.1)m).

 

With NFI back into growth and a lower cost base post restructure, the Group operating profit for the period was £0.3m (H1 2015: loss before exceptional items, £0.1m). Exceptional costs were nil for the six-month period (H1 2015: £1.8m). Profit before tax was £0.3m (H1 2015: £1.9m) loss after exceptional items).  Basic earnings per share was 0.09p (H1 2015: (8.18)p). Fully diluted earnings per share was 0.08p (H1 2015: (8.12)p).

 

As a result of the Group's trading performance and the exceptional costs incurred during 2015 the consolidated group balance sheet at 30 June 2016 had negative retained earnings of £1.7m (31 December 2015: £2.1m). However, the parent company has retained earnings of £9.4m (31 December 2015: £10.0m).

 

As the Group is going through a period of major transition, the Board has taken the decision not to declare an interim dividend. The Board will take a view on any dividend for the full year based on how the Group performs in the second half of this year.

 

 

 

 

Cash flow

 

The business had a net cash outflow of £1.7m (H1 2015 inflow: £8.2m) from operating activities in the first six months of the year. Part of the working capital outflow was due to the 10.2% increase in contract NFI over H2 2015, to £5.4m (H2 2015: £4.9m). In addition, there were a couple of major clients in the UK and Asia who delayed payment which also contributed to the outflow: in aggregate we estimate the delayed payment to be less than £0.7m. Most of these delayed payments were received in the early part of H2. At the end of 2014 there was a payment from a client of £5.0m which was received in the first half of 2015. When adjusted for, it reduces the £8.2m generated from operating activities to £3.2m. We have maintained our strong track record on cash collection. Trade receivables measured as days sale outstanding (DSO) were 20 days (H1 2015: 22 days).

 

After tax payments of £0.1m (H1 2015: £0.1m) and capital expenditure of £0.1m (H1 2015: £0.1m) the Group finished the period with net cash of £1.0m. The Group retains an £18.0m invoice finance facility committed to April 2018.

 

Current Trading

 

We are encouraged by the growth achieved in the first half with around 45% of our NFI being generated internationally. It is too early to assess the impact of the result of the EU Referendum and the effect it could have on client and candidate confidence in our UK business. There was a slight weakness in permanent recruitment in the second quarter in the lead up to the result. Since the Referendum result there has been no discernible change in sentiment and activity.

 

We continue to roll out our plans to turn around the business which should continue to benefit the financial performance in the second half of the year.

 

 

Ian Temple, CEO

Hydrogen Group Plc


 


 

 

 

 

Hydrogen Group Plc







UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2016
















Six months ended


Year ended



30 June

30 June

31 December


2016

2015

2015

Note

£'000

£'000

£'000






Revenue

3

59,391


65,884


122,765








Cost of sales


(50,463)


(55,774)


(104,200)






Gross profit


8,928


10,110


18,565








Administration expenses


(8,645)


(10,172)


(19,193)








Operating profit/(loss) before exceptional items


283


(62)


(628)








Exceptional items

4

-


(1,805)


(5,493)








Operating profit/(loss)

283


(1,867)


(6,121)








Finance costs


(21)


(54)


(80)

Finance income


1


-


5








Profit/(Loss) before taxation


264


(1,921)


(6,196)








Income tax

5

(71)


80


-








Profit/(Loss) for the period/year


192


(1,841)


(6,196)








Other comprehensive profit/(loss):














Exchange differences on translating foreign operations

422


(84)


(136)








Other comprehensive profit/(loss)


422


(84)


(136)








Total comprehensive profit/(loss) for the period/year

614


(1,925)


(6,332)















Attributable to:







Equity holders of the parent


614


(1,925)


(6,332)















Earnings per share







Basic profit/(loss) per share (pence)

7

0.09p


(8.18p)


(27.52p)

Diluted profit/(loss) per share (pence)

7

0.08p


(8.12p)


(26.12p)

Adjusted basic profit/(loss) per share (pence)

7

0.09p


(0.16p)


(3.12p)

Adjusted diluted profit/(loss) per share (pence)

7

0.08p


(0.16p)


(2.96p)

The notes to the accounts set out below form an integral part of this unaudited condensed consolidated interim report.

 

 

 

 

 

Hydrogen Group Plc







UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

As at 30 June 2016









30 June


30 June


31 December


2016


2015


2015

Note

£'000


£'000


£'000

Non-current assets







Goodwill


10,141


13,658


10,141

Other intangible assets


736


889


778

Property, plant and equipment


623


770


687

Deferred tax assets


138


120


138

Other financial assets

9

107


265


108










11,745


15,702


11,852

Current assets







Trade and other receivables

9

20,421


22,116


15,631

Cash and cash equivalents


1,873


2,716


3,034










22,294


24,832


18,665








Total assets


34,039


40,534


30,517








Current liabilities







Trade and other payables

10

13,856


15,072


11,527

Borrowings


840


2,598


454

Current tax liabilities


2


39


5

Provisions

11

-


203


-










14,698


17,912


11,986








Non-current liabilities







Deferred tax


101


-


98

Provisions

11

84


67


68










185


67


166








Total liabilities


14,883


17,979


12,152








Net assets


19,156


22,555


18,365

Equity







Capital and reserves attributable to the equity holders:





Called-up share capital


239


239


239

Share premium account


3,520


3,521


3,520

Merger reserve


16,100


16,100


16,100

Own shares held


(1,338)


(1,312)


(1,338)

Share option reserve


2,390


2,042


2,213

Translation reserve


90


(280)


(332)

Retained earnings


(1,845)


2,245


(2,037)








Total equity


19,156


22,555


18,365

 

 


The notes to the accounts set out below form an integral part of this unaudited condensed consolidated interim report.

 

 

 

Hydrogen Group Plc









UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY


For the six months ended 30 June 2016

















Called-up

Share


Own

Share

Trans-




 share

 premium

Merger

shares

option

lation

Retained

Total


capital

account

reserve

held

 reserve

reserve

 earnings

equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 1 January 2015

239

3,520

16,100

(1,338)

2,041

(196)

4,857

25,223

Dividends

-

-

-

-

-

-

(698)

(698)

Increase in share capital

-

1

-

-

-

-

-

1

Share option charge

-

-

-

-

27

-

-

27

Transactions with owners

-

1

27


(698)

(670)

Loss for the 6m to 30.6.15

-

-

-

-

-

-

(1,841)

(1,841)

Other comprehensive income:

-

-

-

-

-

-

(84)

(84)

Foreign currency translation

-

-

-

-

-

(84)

11

(73)

Total comprehensive loss for the period

-

-

-

-

-

(84)

(1,841)

(1,925)

At 30 June 2015

239

3,521

16,100

(1,338)

2,068

(280)

2,245

22,555

Share option charge reversal

-

-

-

-

144

-

-

144

Tax on share options charge

-

-

-

-

-

-

(52)

(52)

New shares issued

-

-

-

-

-

-

-

-

Transactions with owners

-

-

 -

144

(52)

92

Loss for the 6m to 31.12.15

-

-

-

-

-

-

(4,230)

(4,230)

Other comprehensive income:

-

-

-

-

-

-

-

-

Foreign currency translation

-

-

-

-

-

(52)

-

(52)

Total comprehensive loss for the period

-

-

-

-

-

(52)

(4,230)

(4,282)










At 31 December 2015

239

3,520

16,100

(1,338)

2,213

(332)

(2,037)

18,365

Increase in share capital

-

-

-

-

-

-

-

-

Share option charge

-

-

-

-

180

-

-

180

Transactions with owners

-


-

-

-

-

Profit for the 6m to 30.6.16

-

-

-

-

-

-

192

192

Other comprehensive income:

-

-

-

-

-

-

-

-

Foreign currency translation

-

-

-

-

(3)

422

-

419

Total comprehensive profit for the period

-

-

-

-

-

422

192

611










At 30 June 2016

239

3,520

16,100

(1,338)

2,390

90

(1,845)

19,156

 

 

The notes to the accounts set out below form an integral part of this unaudited condensed consolidated interim report.

 

 




Hydrogen Group Plc





UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOW


For the six months ended 30 June 2016












Six months ended

Year ended



30 June

30 June

31 December



2016

2015

2015


Note

£'000

£'000

£'000






Net cash (outflow)/inflow from operating activities

8

(1,910)

7,667

10,255






Investing activities





Finance income


1

83

4

Proceeds from disposal of property, plant and equipment


-

16

23

Purchase of property, plant and equipment


-

-

(3)

Purchase of software assets


(60)

(101)

(138)

Net cash used in investing activities


(59)

(2)

(114)






Financing activities





Proceeds on issue of shares


-

1

-

Increase/(decrease) in borrowings


386

(10,081)

(12,250)

Equity dividends paid

6

-

(698)

(698)






Net cash generated/(utilised) from financing activities


386

(10,778)

(12,948)






Net decrease in cash and cash equivalents


(1,583)

(3,113)

(2,807)






Cash and cash equivalents at beginning of period/year


3,034

5,975

5,975

Effect of foreign exchange rate movements


422

(147)

(134)






Cash and cash equivalents at end of period/year


1,873

2,716

3,034











UNAUDITED RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT


For the six months ended 30 June 2016












Six months ended

Year ended



30 June

30 June

31 December


2016

2015

2015


£'000

£'000

£'000






Decrease in cash and cash equivalents in the period/year

(1,161)

(3,234)

(2,941)

(Increase)/decrease in net debt resulting from cash flows


(386)

10,081

12,250






Movement in net cash in the period/year


(1,547)

6,847

9,309






Net cash /(debt) at the start of the period/year


2,580

(6,729)

(6,730)






Net cash at the end of the period/year


1,033

118

2,580

 

 

The notes to the accounts set out below form an integral part of this unaudited condensed consolidated interim report.


Hydrogen Group Plc


NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM REPORT

For the six months ended 30 June 2016

 

1     General information

Hydrogen Group plc ("the Company") and its subsidiaries' (together "the Group") principal activity is the provision of recruitment services for mid to senior level professional staff. The Group is organised into seven practices offering both Permanent and Contract specialist recruitment consultancy for large and medium sized organisations.  The Group operates primarily in the Technology, Finance, Energy, Legal, Life Sciences and Business Transformation sectors.  The Group is becoming increasingly international, with operations in Australia, Malaysia, Singapore and USA, and a number of internationally focused teams based in the UK.

Hydrogen Group plc is the Group's ultimate parent company. The Company is a limited liability company incorporated and domiciled in the United Kingdom. The address of Hydrogen Group's registered office and its principal place of business is 30-40 Eastcheap, London, EC3M 1HD, England. Hydrogen Group's shares are listed on the AIM Market.

The unaudited condensed consolidated interim report for the six months ended 30 June 2016 (including comparatives) is presented in GBP '000, and were approved and authorised for issue by the board of directors on 7 September 2016.

Copies of these interim results are available at the Company's registered office, 30 Eastcheap, London, EC3M 1HD, England, and on the Company's website - www.hydrogengroup.com.

This unaudited condensed consolidated interim report does not constitute statutory accounts of the Group within the meaning of section 434 of the Companies Act 2006.  The financial information for the year ended 31 December 2015 has been extracted from the statutory accounts for that year, which have been filed with the Registrar of Companies.  The auditor's report on those accounts was unqualified and did not contain a statement under section 498 of the Companies Act 2006.

 

2     Basis of preparation

The unaudited condensed consolidated interim report for the six months ended 30 June 2016 has been prepared using accounting policies consistent with International Financial Reporting Standards ("IFRSs") and in accordance with IAS 34, 'Interim financial reporting' as adopted by the European Union. The unaudited condensed consolidated interim report should be read in conjunction with the annual financial statements for the year ended 31 December 2015, which were prepared in accordance with IFRSs as adopted by the European Union.

These financial statements have been prepared under the historical cost convention.

To finance its working capital requirements, the Group has an £18m invoice discounting facility, committed to April 2018. The maximum amount of the invoice discount facility utilised during the period was 46%. The Group's forecasts and projections demonstrate that this facility should be adequate to meet the Group's obligations as they fall due in the foreseeable future.  Accordingly, the directors have adopted the going concern basis in preparing the interim report.

This unaudited condensed consolidated interim report has been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year ended 31 December 2015.

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of the condensed consolidated interim report.

 


3     Segment reporting

(a) Revenue, gross profit and operating profit by discipline
For management purposes, the Group is organised into two operating segments, EMEA including USA (EMEA) and Asia Pacific (APAC), based on the discipline of the candidate being placed. Both of the operating segments have similar economic characteristics and share a majority of the aggregation criteria set out in IFRS 8.12.

 


30 June 2016


30 June 2015


31 December 2015


EMEA

APAC

Group cost

Total


EMEA

APAC

Group cost

Total


EMEA

APAC

Group cost

Total


£'000

£'000

£'000

£'000


£'000

£'000

£'000

£'000


£'000

£'000

£'000

£'000
















Revenue

54,612

4,779

-

59,391


62,402

3,482

-

65,884


116,061

6,705

-

122,765
















Gross profit

7,293

1,635

-

8,928


1,739

-

10,110


15,369

3,196

-

18,565
















Depreciation and amortisation

162

4

-

166


217

8

-

225


383

30

-

413
















Operating profit /(loss)before exceptional items

855

45

(616)

283


714

(340)

(436)

(62)


1,399

(914)

(1,113)

(628)
















Finance costs




(21)





(54)





(80)

Finance income




-





-





5
















(Loss)/profit before tax and exceptional items




264





(116)





(703)


Segment reporting (continued)

Revenue reported above represents revenue generated from external customers. There were no sales between segments in the six months (30 June 2015: Nil, 31 December 2015: Nil).

The accounting policies of the reportable segments are the same as the Group's accounting policies described above. Segment profit represents the profit earned by each segment without allocation of central administration costs, finance costs and finance income.

The information reviewed by the chief operating decision maker, or otherwise regularly provided to the chief operating decision maker, does not include information on net assets. The cost to develop this information would be excessive in comparison to the value that would be derived.

There is one external customer that represented more than 31% of the entity's revenues with revenue of £18.5m, and approximately 16% of the Group's net fee income, included in the EMEA segment (30 June 2015: one customer, revenue £21.2m, EMEA segment; 31 December 2015: one customer, revenue £39.4m, EMEA segment).


(b) Revenue and gross profit by geography



Revenue


Gross profit





Six months ended

Year ended


Six months ended

Year ended


30 June

30 June

31 Dec

30 June

30 June

31 Dec

2016

2015

2015

2016

2015

2015

£'000

£'000

£'000

£'000

£'000

£'000








UK

45,649

54,298

100,992

4,987

6,394

11,923








Rest of World

13,742

11,586

21,773

3,941

3,716

6,642









59,391

65,884

122,765

8,928

10,110

18,565

 

(c) Revenue and gross profit by recruitment classification

 



Revenue


Gross profit





Six months ended

Year ended


Six months ended

Year ended


30 June

30 June

31 Dec

30 June

30 June

31 Dec

2016

2015

2015

2016

2015

2015

£'000

£'000

£'000

£'000

£'000

£'000








Permanent

3,547

4,521

8,079

3,544

4,521

8,044








Contract

55,844

61,364

114,686

5,384

5,589

10,521









59,391

65,884

122,765

8,928

10,110

18,565



 

 

4          Exceptional items

Exceptional items are costs that are separately disclosed due to their material and non-recurring nature. They arose as a result of the comprehensive review of the Group's operations and actions implemented to reduce the Group's administration costs:

 



Six months ended

Year ended



30 June

30 June

31 December

2016

2015

2015

£'000

£'000

£'000





Goodwill impairment

-

-

3,517

Tangible asset write down and disposal

-

943

988

Employee restructuring costs

-

788

939

Property costs

-

69

223

Onerous lease provision release

-

-

(212)

Advisor's costs

-

5

31

Other

-

-

7












-

1,805

5,493

 

 

5     Income tax expense

The charge for taxation on profits for the six months amounted to £0.1m (30 June 2015: £0.1m, 31 December 2015: £nil), being tax on profits and adjustment to prior year amounts.

 

6     Dividends

     



Six months ended

Year ended



30 June

30 June

31 December

2016

2015

2015

£'000

£'000

£'000

Amounts recognised and distributed to shareholders in the period




Final dividend for the year ended 31 December 2015 of Nil p per share (2014: 3.1p per share)




-

698

698








-

698

698

 

 

No dividend was proposed in respect of the year ended 31 December 2015.



 

7     Earnings per share

Earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Group by the weighted average number of ordinary shares in issue.

Fully diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares by existing share options and share incentive plans, assuming dilution through conversion of all existing options and shares held in share plans.

 

 



Six months ended

Year ended



30 June

30 June

31 December

2016

2015

2015

£'000

£'000

£'000

Earnings





Profit/(loss) for the period/year attributable to equity holders of the parent




192

(1,841)

(6,196)






Adjusted earnings





Profit/(loss) for the period


192

(1,841)

(6,196)

Add back: exceptional costs


-

1,805

5,493



192

(36)

(703)






Number of shares


Number

Number

Number

Weighted average number of shares used for earnings per share





22,530,249

22,513,793

22,516,021

Dilutive effect of share plans


1,987,668

166,345

1,207,033

Diluted weighted average number of shares used to calculate fully diluted earnings per share








24,517,917

22,680,138

23,723,054








Pence

Pence

Pence

Basic profit/(loss) per share


0.09

(8.18)

(27.52)

Fully diluted profit/(loss) per share


0.08

(8.12)

(26.12)

Adjusted basic profit/(loss)/earnings per share


0.09

(0.16)

(3.12)

Adjusted diluted profit/(loss)/earnings per share


0.08

(0.16)

(2.96)

 



 

8     Cash flow from operating activities



Six months ended

Year ended




30 June

30 June

31 December



2016

2015

2015



£'000

£'000

£'000








Profit/(loss) before taxation

264

(1,921)

(703)


Adjusted for:






Exceptional items


-

1,805

-


Depreciation and amortisation


150

226

414


Increase/(decrease)in provisions


16

(98)

(88)


Gain/(loss) on sale of property, plant and equipment

-

5

(4)


Share based payments


180

-

172


Net finance costs


20

54

76







Operating cash flows before movements in working capital

630

71

(133)








(Increase)/decrease in receivables


(4,822)

9,113

15,683


Increase/(decrease) in payables


2,522

(886)

(3,924)







Cash (utilised) /generated from operating activities

(1,670)

8,298

11,626








Income taxes paid


(90)

(44)

(89)


Finance costs


(20)

(54)

(80)








Net cash (outflow)/ inflow from operating activities and before exceptional costs

(1,781)

8,200

11,457








Cash flows arising from exceptional costs

(129)

(533)

(1,202)







Net cash (outflow)/ inflow from operating activities

(1,910)

       7,667

10,255


 

 



9     Trade and other receivables

 



Six months ended

Year ended



30 June

30 June

31 December

2016

2015

2015

£'000

£'000

£'000





Trade receivables

8,841

9,321

6,428

Allowance for doubtful debts

(149)

(44)

(319)

Accrued income

11,361

12,149

8,994

Prepayments

326

578

372

Other receivables




- due within 12 months

44

111

156

- due after more than 12 months

107

265

108








20,529

22,381

15,739






Current


20,421

22,116

15,631

Non-current


107

265

108

10   Trade and other payables

 



Six months ended

Year ended



30 June

30 June

31 December

2016

2015

2015

£'000

£'000

£'000





Trade payables

1,075

1,316

613

Other taxes and social security costs

719

600

489

Other payables

916

929

1,121

Accruals

11,147

12,227

9,304








13,856

15,072

11,527






 

 

 

11   Provisions

 



Leasehold

Onerous




dilapidations

contracts

Total



£'000

£'000

£'000





At 1 January 2015

60

308

368

New provision

7

-

7

Utilised

-

(105)

(105)

At 30 June 2015

67

203

270

New provision

21

-

21

Unutilised provision released


 

                     -

 

(212)

 

(212)

Utilised

(20)

9

(11)

At 31 December 2015


68

-

68

New provision


16

-

16

Utilised

-

-

-






At 30 June 2016


84

-

84






Current


-

-

-

Non-current


84

-

84

 

 

 

This announcement contains inside information.

 


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