Source - RNS
RNS Number : 3737J
Journey Group PLC
08 September 2016
 

 

 

 

The following replaces the 'Half-Year Results' announcement released on 8 September 2016 at 07.00 under RNS No 2449J.

 

The net cash figure was incorrectly stated at 31 August 2016 as being $5,473,000 whereas in fact this was the gross cash figure. The actual net cash figure as at 31 August 2016 was $3,273,000.

 

 The full amended text is shown below:

 

Journey Group PLC

8 September 2016

 

                                                                         Journey Group plc

         ("Journey" or the "Group")

                                                                            Interim results

 

Journey Group, a leading provider of in-flight products and catering services to the international airline and travel industries announces its interim results for the six months to 30 June 2016.

 

The key highlights for the half year were:

 

Financial Highlights:

 

·       Revenue growth of 7% to $32.7 million  (H1 2015: $30.5 million)

·       EBITDA increased by 50% to $2.7 million (H1 2015: $1.8 million)

·      Profit before tax of $1.8 million  (H1 2015: $1.0 million)

·       Basic earnings per share of 11.32 cents (H1 2015 5.27 cents)

·       Net cash at 30 June 2016 of $2,620,000 and at 31 August 2016 of $3,273,000

·       Interim dividend of 3.4 pence per share paid on 31 March 2016 in lieu of a final dividend for the previous financial year

 

Operational Highlights:

 

·       Air Fayre:

·      Awarded and successfully launched contracts in mid-June with WOW Air and Dynamic International out of Los Angeles International Airport ("LAX")

·      Post the period end awarded a contract with American Airlines for four daily international flights out of LAX, two of which commenced mid-July 2016 with the remainder launching H2 2016

 

·       Watermark:

·      Opened an office in the USA with encouraging number of new business enquiries

·      Secured new business with Swiss International Air Lines AG

 

Post-period end, on 23 August 2016, the boards of Jaguar Holdings Limited and the Independent Directors of Journey Group plc announced that they had reached agreement on the terms of a recommended cash offer by Jaguar Holdings for the entire issued and to be issued share capital of Journey to be effected by means of a Court sanctioned scheme of arrangement between Journey and its shareholders pursuant to the provisions of Part 26 of the Companies Act 2006. A circular setting out the full details of the Scheme and procedures to be followed by shareholders to approve the Scheme is expected to be despatched to shareholders later today.

 

 

Stephen Yapp, Executive Chairman commented "The Group has delivered an excellent half-year performance overall, with a strong growth in profitability reflecting the impact of new customers launched in 2015 and we have continued to make good progress on our strategic objectives.

 

To date, our strategy for growth has worked as we have been awarded and successfully launched a range of Air Fayre's catering services to existing and new customers from our LAX facility and demonstrated the transferability of the model with the opening of the facility at Memphis. 

 

Looking ahead, however, we are at an inflection point where future growth will require new contract wins and additional, potentially speculative, investment in capacity. Whilst the business has fared well in the public markets, the Journey Independent Directors believe that Journey will be better placed to deliver the next phase of its strategic objectives and to grow its US in-flight catering business as a private company. Consequently, as announced on 23 August 2016, Journey's Independent Directors are recommending shareholders accept the 240 pence per share cash offer for the Group.

 

The Board continues to expect full year performance to be in line with expectations."

 

 

 

 

 

 

 

 

Journey Group plc

 Stephen Yapp

Alison Whittenbury

 

Tel: +44 (0) 20 8606 1300

[email protected]

 

N+1 Singer (Nominated Adviser & Broker)

Nic Hellyer

Alex Price

Lauren Kettle

Tel: +44 (0) 20 7496 3000

 

 

CHAIRMAN'S STATEMENT

 

The Group has had a good first half of the year overall delivering results in line with expectations and making further progress strategically.  Against a backdrop of adverse weather in the first quarter of 2016 and heightened economic uncertainty globally, it is encouraging that we can continue this growth momentum and shortly after the period end, the Board was delighted to announce the contract for four daily international flights from Los Angeles International Airport with an important new customer, American Airlines. 

 

The key highlights for the half year were:

 

Financial Highlights:

 

·       Revenue growth of 7% to $32.7 million  (H1 2015: $30.5 million)

·       EBITDA increased by 50% to $2.7 million (H1 2015: $1.8 million)

·      Profit before tax of $1.8 million  (H1 2015: $1.0 million)

·       Basic earnings per share of 11.32 cents (H1 2015 5.27 cents)

·       Net cash at 30 June 2016 of $2,620,000 and at 31 August 2016 of $3,273,000

·       Interim dividend of 3.4 pence per share paid on 31 March 2016 in lieu of a final dividend for the previous financial year

 

 

Operational Highlights:

 

·       Air Fayre:

·      Awarded and successfully launched contracts in mid-June with WOW Air and Dynamic International out of Los Angeles International Airport ("LAX")

·      Post the period end awarded a contract with American Airlines for four daily international flights out of LAX, two of which commenced mid-July 2016 with the remainder launching H2 2016

 

·       Watermark:

·      Opened an office in the USA with encouraging number of new business enquiries

·      Secured new business with Swiss International Air Lines AG

 

Post-period end, on 23 August 2016, the boards of Jaguar Holdings Limited and the Independent Directors of Journey Group plc announced that they had reached agreement on the terms of a recommended cash offer by Jaguar Holdings for the entire issued and to be issued share capital of Journey to be effected by means of a Court sanctioned scheme of arrangement between Journey and its shareholders pursuant to the provisions of Part 26 of the Companies Act 2006. A circular setting out the full details of the Scheme and procedures to be followed by shareholders to approve the Scheme is expected to be despatched to shareholders later today.

 

 

MARKET CONDITIONS

 

Passenger numbers to May 2016 are estimated by IATA, the airline trade body, to have grown at approximately 5.3% globally. This is a rate which they describe as "robust" and in line with the average pace seen over the past decade. However, following a bumper year in 2015 there are signs that growth momentum globally has weakened slightly. This is partly attributed to the Brussels terrorist attacks and as a reflection of the ongoing fragile global economic backdrop including the uncertainty post 'Brexit'. It is anticipated, however, that there may be some stimulus in the short term from lower fares resulting from the lower oil price environment.

 

Reassuringly for the Group, in North America - Air Fayre's core market - carriers have focused their efforts on the larger domestic market with a key metric of domestic revenue passenger kilometres increasing 4.4% year-on-year up from 2.4% in the prior year.

 

 

RESULTS

 

The results for the half year were as follows:

 

6 months to 30 June

 



2016

$'000

 

2015

$'000

 

Revenue



32,664

 

30,494

 

EBITDA before exchange differences



2,686

 

1,812

Exchange differences



20

(12)

EBITDA



2,706

1,800

Depreciation and amortisation



(875)

(757)

Operating profit



1,831

1,043

 

Finance costs



(56)

(48)

Profit before tax



1,775

995

Income tax expense



(423)

(282)

Profit attributable to equity shareholders



1,352

713

 

Basic earnings per share

Diluted earnings per share

11.32 cents

11.32 cents

5.27 cents

5.27 cents

 

From a financial perspective, the Group had a good first half trading with revenue increasing by 7% to $32.7million and EBITDA increasing by 50% to $2.7 million from $1.8 million mainly reflecting Air Fayre's FedEx contract in Memphis and also the UAX (United Express Jets) for a full 6 months, as this contract only launched in later April 2015.  Consequently Operating Profit before tax and Profit before tax also showed increases of 76% and 78% respectively.

 

The tax charge decreased to approximately 24% as a result of the greater proportion of US profits and related tax charges at an average rate of 39.5% combined with a tax credit relating to year 2015, giving a Profit after tax of $1.35 million. The Basic earnings per share amounted to 11.32 cents compared with 5.27 cents last year.

 

Net cash as at 30 June 2016 amounted to $2.6 million comprising cash of $5.0 million offset by finance lease debt of $2.4 million. This compares with net cash at 31 December 2015 of $3.6 million and at 30 June 2015 of $7.2 million. The reduction reflects a temporary increase in trade receivables in the US division, resulting from delays in the annual price updates, along with a decrease in trade payables and a small increase in inventory days. These metrics are related to the new airline customers in recent months and associated new suppliers. Additionally, the company completed its buyback programme on 15 April 2016 with a repurchase of 164,815 shares and in so doing, returning £313,149 to shareholders.

 

 

US DIVISION

6 months to 30 June



2016

 

2015




$'000

$'000

 

Revenue



24,944

 

20,802

EBITDA



2,303

1,438

Operating profit



1,465

727

 

The US Division delivered a strong first half performance despite several flight cancellations as a result of adverse weather in the first quarter and the impact of the ongoing United Airlines change in the mix of the types of aircraft utilised year on year.

 

Revenue rose 20% to $24.9 million from $20.8m reflecting a full six months impact for both UAX Express Jets and the FedEx contract in Memphis. This also impacted EBITDA which increased by 60% to $2.3 million from $1.4 million and similarly Operating profit which more than doubled to $1.5 million from $0.7 million.

 

Pleasingly, two new customers were awarded and launched during the first half of the year. One contract awarded was with WOW Air, the low cost Icelandic airline, to provide a buy on board catering offering and crew meals for four weekly international flights to Reykjavik out of LAX. The other was to provide a range of catering services for Dynamic International for their four weekly flights to Cancun from LAX including hot and cold meals, snacks, crew meals and international waste handling.

 

In July we announced the award of the contract with American Airlines. Air Fayre will provide catering services for four daily international flights out of LAX from some additional space in the vicinity. Two flights commenced in mid-July 2016 with the remainder launching later in 2016 which will have a small positive impact on our performance in the second half of the year.

 

PRODUCTS DIVISION

 

6 months to 30 June



2016

 

2015




$'000

$'000

 

Revenue



 

7,720

 

9,692

EBITDA before exchange differences



8

247

Exchange differences



4

(19)

EBITDA after exchange differences



12

228

Operating (loss)/profit



(25)

182

 

The Products Division "Watermark" was impacted by the reduction in business from Delta Airlines. As previously explained, the contract with Delta has not been renewed and will formally come to an end in [October 2016].  Revenue fell 20% to $7.7 million from $9.7 million. EBITDA fell to $12,000 from $228,000 with an operating loss of $25,000 in comparison with $182,000 profit for the prior year period.

 

The strategically important opening of a US-based office in New York has enabled a focus on expanding business with the American carriers and already facilitated a number of new enquiries.

 

DIVIDEND

 

The interim dividend of 3.4 pence per share in lieu of a final dividend in respect of the year ended 31 December 2015 was paid on 31 March 2016 at a cost of £408,364. This was deemed beneficial to shareholders ahead of tax changes relating to dividends which took effect in April 2016. Consequently, the Board did not recommend the payment of a final dividend in respect of the year ended 31 December 2015.  

 

RECOMMENDED CASH OFFER

As announced on 23 August 2016, Jaguar Holding has announced a recommended cash offer of 240 pence per share for the entire issued and to be issued share capital of Journey. This values the Group at approximately £28.4 million and is to be effected by way of a court-sanctioned scheme of arrangement. Jaguar Holdings is a private limited company incorporated in England and Wales, which was formed at the direction of Harwood Capital LLP, Journey Group's largest shareholder. A scheme circular outlining the terms of the offer and the recommendation made by the independent Directors to vote in favour of the scheme is expected to be posted to shareholders later today.

 

.

OUTLOOK

The Group has delivered an excellent half-year performance overall, with a strong growth in profitability reflecting the impact of new customers launched in 2015 and we have continued to make good progress on our strategic objectives.

 

To date, our strategy for growth has worked as we have been awarded and successfully launched a range of Air Fayre's catering services to existing and new customers from our LAX facility and demonstrated the transferability of the model with the opening of the facility at Memphis. 

 

Looking ahead, however, we are at an inflection point where future growth will require new contract wins and additional, potentially speculative, investment in capacity. Whilst the business has fared well in the public markets, the Journey Independent Directors believe that Journey will be better placed to deliver the next phase of its strategic objectives and to grow its US in-flight catering business as a private company. Consequently, as announced on 23 August 2016, Journey's Independent Directors are recommending shareholders accept the 240 pence per share cash offer for the Group.

 

The Board continues to expect full year performance to be in line with expectations.

 

 

Stephen Yapp

Executive Chairman

8  September 2016

 

UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT

 


Note

6 months to

30 June

2016

$'000

 

6 months to

30 June

2015

$'000

 

12 months to

31 December

2015

$'000

 

Revenue

 

3

32,664

30,494

63,574

 

Cost of sales

 

 

(24,008)

(23,073)

(47,871)

 

Gross profit

 

 

8,656

7,421

15,703

 

Operating and administrative costs

 

 

(6,825)

(6,378)

(12,353)

 

Operating profit

 

3

1,831

1,043

3,350

 

Finance costs

 

4

(56)

(48)

(96)

 

Profit before tax from continuing operations

 

 

1,775

995

3,254

 

Income tax expense

 

5

(423)

(282)

(954)

 

Profit attributable to equity shareholders

 

3

1,352

713

2,300

 

Earnings per share



 

Basic

Diluted

 

6

6

11.32 cents

11.32 cents

5.27 cents

5.27 cents

17.18 cents

17.18 cents

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 


6 months to

30 June

2016

$'000

 

6 months to

30 June

2015

$'000

12 months to

31 December

2015

$'000

 

Profit attributable to equity shareholders

1,352

713

2,300

 

Other comprehensive income




Items that will not be reclassified subsequently to profit or loss:




Exchange differences on translating in presentational currency

48

50

(57)

 

Other comprehensive income, net of tax

48

50

(57)

 

Total comprehensive income attributable to equity shareholders

1,400

763

2,243

 

 

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

 

 


Note

 

30 June

2016

$'000

 

30 June

2015

$'000

31 December

2015

$'000

 

Assets

 

 

 

 

 

 

 

 

Non-current assets





Property, plant and equipment

7

6,601

7,171

7,016

Goodwill


4,171

3,960

4,171

Intangible assets


598

115

612

Deferred tax


234

-

57



11,604

11,246

11,856

Current assets





Inventories


1,302

980

1,006

Trade and other receivables


5,987

4,436

6,002

Other short-term financial assets


-

-

-

Prepayments


1,559

535

240

Current income tax


283

57

435

Cash and short-term deposits

8

5,040

9,722

6,508



14,171

15,730

14,191

Total assets


25,775

26,976

26,047

 

 

Equity and liabilities

 

 

 




Equity attributable to equity shareholders of the parent





Issued share capital


5,715

5,380

5,715

Merger reserve


2,519

2,372

2,519

Foreign currency translation reserve


(1,796)

(954)

(1,844)

Retained earnings


8,530

10,450

8,169

Total equity


14,968

17,248

14,559

 

Non-current liabilities

 

 




Interest bearing loans and borrowings

8

1,661

1,827

1,960

Deferred tax


659

212

553



2,320

2,039

2,513

Current liabilities





Trade and other payables


7,728

6,986

8,069

Current income tax


-

-

-

Interest bearing loans and borrowings

8

759

703

906

 

 

 

 

8,487

7,689

8,975

Total liabilities

 

 

 

10,807

9,728

11,488

Total equity and liabilities


25,775

26,976

26,047

 

 

UNAUDITED CONDENSED CONSOLIDATED CASHFLOW STATEMENT

 

 



6 months to

30 June

2016

$'000

 

6 months to

30 June

2015

$'000

 

12 months to

31 December

2015

$'000

 

Net cash flows from operating activities

 

 

 

 

 

 

 

 






Profit after tax


1,352

713

2,300

Depreciation and amortisation


875

757

1,592

Share based payments


35


23

Finance costs


56

48

96

Income tax expense


423

282

954

(Increase)/decrease in inventories


(296)

(235)

(261)

Decrease/(increase) in trade and other receivables


(1,303)

393

(878)

Increase/(decrease) in trade and other payables


(341)

415

134

Cash flows generated from operations


801

2,373

3,960






Interest paid


(56)

(48)

(96)

Income taxes paid


(343)

(34)

(800)

Net cash flows generated from operating activities

402

2,291

3,064

 

Cash flows from investing activities

 

 









Purchase of property, plant and equipment


(430)

(370)

(434)

Purchase of intangible assets


(16)

(14)

(541)

Disposal of property, plant and equipment


-

-

15

Net cash flows generated from/(used in) investing activities

(446)

(384)

(960)

 

Cash flows from financing activities

 

 









Dividend paid


(577)

(328)

(333)

Share buy back


(449)

-

(3,068)

Share based payments


-

-

-

Payment of finance lease obligations


(341)

(260)

(630)

Net cash flows used in financing activities

(1,367)

(588)

(4,031)

 

Net increase/(decrease) in cash and cash equivalents

 

 

(1,411)

1,319

(1,927)

Net foreign exchange difference


48

16

(57)

Cash and cash equivalents at beginning of period


6,403

8,387

8,387

Cash and cash equivalents at end of period


5,040

9,722

6,403

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

Condensed consolidated statement of changes in equity for the 6 months to 30 June 2016

 

 


Issued share capital

$'000

Merger reserve

$'000

Foreign currency translation

reserve

$'000

Retained earnings

$'000

Total equity

$'000

 

At 1 January 2016

5,715

2,519

(1,844)

8,169

14,559

Dividend

-

-

-

(577)

(577)

Share Buy Back

-

-

-

(449)

(449)

Share based payments




35

35

Transactions with owners

-

-

-

(991)

(991)

Profit attributable to equity shareholders

 

-

 

-

 

-

1,352

1,352

Other comprehensive income:






Exchange differences on

translating into presentational currency

 

 

-

 

 

-

48

-

48

Total comprehensive income

-

-

48

1,352

1,400

 

At 30 June 2016

 

5,715

2,519

(1,796)

8,530

14,968

 

 

 

 

 

 

 

 

 

 

Condensed consolidated statement of changes in equity for the 6 months to 30 June 2015

 


Issued share capital

$'000

Merger reserve

$'000

Foreign currency translation

reserve

$'000

Retained earnings

$'000

Total equity

$'000

 

At 1 January 2015

 

5,380

2,372

(1,004)

10,065

16,813

Issue of ordinary shares

-

-

-

-

-

Dividend

-

-

-

(328)

(328)

Share buy back

-

-

-

-

-

Share based payments

-

-

-

-

-

Transactions with owners

-

-

-

(328)

(328)

Profit attributable to equity shareholders

 

-

-

-

713

713

Other comprehensive income:






Exchange differences on

translating into presentational currency

 

-

-

50

-

50

Total comprehensive income

-

-

50

713

763

 

At 30 June 2015

 

5,380

2,372

(954)

10,450

17,248

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Condensed consolidated statement of changes in equity for the 12 months to 31 December 2015

 

 


Issued share capital

$'000

Merger reserve

$'000

Foreign currency translation

reserve

$'000

Retained earnings

$'000

Total equity

$'000

 

At 1 January 2015

 

5,715

2,519

(1,787)

10,353

16,800

Issue of ordinary shares

-

-

-

-

-

Dividend

-

-

-

(333)

(333)

Share buy back

-

-

-

(4,174)

(4,174)

Share based payments

-

-

-

23

23

Transactions with owners

-

-

-

(4,484)

(4,484)

Profit attributable to equity shareholders

 

-

-

-

2,300

2,300

Other comprehensive income:






Exchange differences on

translating into presentational currency

 

-

-

(57)

-

(57)

Total comprehensive income

-

-

(57)

2,300

2,243

 

At 31 December 2015

 

5,715

2,519

(1,844)

8,169

14,559

 

 

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. CORPORATE INFORMATION

 

Journey Group plc is a public limited company incorporated and domiciled in England & Wales. The Company's shares were publicly traded on the AIM market of the London Stock Exchange during the reporting period.

 

The principal activities of the Group are described in Note 3.

 

 

 

 

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

 

i. Basis of preparation

The interim condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting.  The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's financial statements for the year ended 31 December 2015, which were prepared in accordance with International Financial Reporting Standards adopted by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting Interpretations Committee  ("IFRIC") of the IASB (together "IFRS") as adopted by the European Union, and in accordance with the requirements of the Companies Act applicable to companies reporting under IFRS.

 

The same policies and methods as followed in the annual report have been used in the preparation of the interim condensed consolidated financial statements.

 

The information relating to the six months ended 30 June 2016 and the six months ended 30 June 2015 is unaudited and does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006.  The Group's statutory financial statements for the year ended 31 December 2015 have been reported on by its auditor and delivered to the Registrar of Companies. The report of the auditor was unqualified and did not draw attention to any matters by way of emphasis, or contain a statement under section 498(2) or (3) of the Companies Act 2006. The interim condensed consolidated financial statements have been reviewed by the auditor and their report to the Board of Journey Group plc is included within this interim report.

 

 

3. SEGMENTAL REPORTING

 

The Group is organised into two primary business segments, the US and Products Divisions. These reportable segments are the strategic divisions for which financial information is provided to the chief operating decision maker.

 

The US Division is a supplier of catering and beverages to the domestic and international travel industry within the United States of America. The Products Division provides a broad range of travel supplies predominately to the international travel industry on a global basis. Segment revenues are based on the country of domicile of the customer; information is not available to produce segment revenues based on sales by destination.

 

Segmental assets include all operating assets used by a segment and consist principally of operating cash, receivables, prepayments, inventories, goodwill and property, plant and equipment, net of allowances and provisions. Where allocation across segments is not possible, they are classified as unallocated corporate assets.

 

Segmental information by business segment for 6 months to 30 June 2016

 


US

Division

$'000

Products Division

$'000

Total

$'000

 

Revenue

Revenue from sale of unprocessed food*

23,548

1,396

7,720

-

31,268

1,396

Total Revenue

24,944

7,720

32,664

 

Segment result

1,465

(25)

1,440

Unallocated corporate expenses



426

Operating profit



1,866

Share based payments



(35)

Finance costs



(56)

Income tax expense



(423)

Profit attributable to equity shareholders



1,352





Segment assets

18,238

7,204

25,441

Unallocated corporate assets



(184)




25,258

Current & deferred income taxes



517

Total assets



25,775





Segment liabilities

(7,520)

(2,417)

(9,937)

Unallocated corporate liabilities and eliminations



(211)




(10,148)

Current and deferred income taxes



(659)

Total liabilities



(10,807)

 

*Revenue is recognised on raw materials that are bought in and sold on to caterers on the basis that the risks and rewards of ownership are initially assumed by Journey Group plc and are subsequently transferred to the caterer

 

Segmental information by business segment for 6 months to 30 June 2015

 


US

Division

$'000

Products Division

$'000

Total

$'000

 

Revenue

Revenue from sale of unprocessed food

19,027

1,775

9,692

-

28,719

1,775

Total Revenue

20,802

9,692

30,494

 

Segment result

727

182

909

Unallocated corporate expenses



134

Operating profit



1,043

Finance costs



(48)

Income tax expense



(282)

Profit attributable to equity shareholders



713





Segment assets

16,920

7,258

24,178

Unallocated corporate assets



2,741




26,919

Current income taxes



57

Total assets



26,976





Segment liabilities

(6,783)

(2,406)

(9,189)

Unallocated corporate liabilities and eliminations



(327)




(9,516)

Current and deferred income taxes



(212)

Total liabilities



(9,728)

 

 

Segmental information by business segment for 12 months to 31 December 2015

 


US

Division

$'000

Products Division

$'000

Total

$'000

 

Revenue

42,396

17,799

60,195

Revenue from sale of unprocessed food

3,379

-

3,379

Total Revenue

45,775

17,799

63,574

 

Segment result

2,401

346

2,747

Unallocated corporate expenses



626

Operating profit



3,373

Share based payments



(23)

Finance costs



(96)

Income tax expense



(1,018)

Profit attributable to equity shareholders



2,236





Segment assets

17,596

7,532

25,128

Unallocated corporate assets



427




25,555

Deferred income taxes



492

Total assets



26,047





Segment liabilities

6,713

2,780

9,493

Unallocated corporate liabilities and eliminations



1,442




10,935

Current and deferred income taxes



553

Total liabilities



11,488

 

 

 

 

4. FINANCE COSTS

 


6 months to

30 June

2016

$'000

6 months to

30 June

2015

$'000

12 months to

31 December

2015

$'000





Loans and overdrafts

4

4

8

Finance leases

52

44

88

Total finance costs

56

48

96

 

 

5. INCOME TAX

 

The Group is organised into two primary segments, the Products and the US Divisions. Geographically, the subsidiaries in Products Division are based in United Kingdom, Australia and Hong Kong and the subsidiaries in the US Division are based in United States of America. The operating income of divisions is subject to income tax in their respective geographical territories. The movement in income tax expense is the result of movement in divisional profits applicable to different tax rates.

 

6. EARNINGS PER SHARE

 

The basic earnings per share is calculated by dividing the profit attributable to equity shareholders (numerator) by the weighted average number of ordinary shares in issue during the period (denominator).

 

The diluted earnings per share is calculated using the same numerator, adjustable for the share based payments charge, with the denominator adjusted for the dilutive effects of share options. The dilutive effect of share options for the six months period to 30 June 2016 reflects the number issued effectively for nil value, of ordinary shares that would have been issuable at that date under the management incentive scheme.

 

 

Profit table

6 months to

30 June

2016

$'000

6 months to

30 June

2015

$'000

12 months to

31 December

2015

$'000





Profit attributable to equity shareholders

1,352

713

2,300





 

 

 

Weighted average number of shares in issue

6 months to

30 June

2016

6 months to

30 June

2015

12 months to

31 December

2015





For basic earnings per share

11,941,490

13,533,729

13,390,380

 

For diluted earnings per share

11,941,490

13,533,729

13,390,380

 

 

 

Earnings per share table

6 months to

30 June

2016

Cents

6 months to

30 June

2015

Cents

12 months to

31 December

2015

Cents





Basic earnings per share

11.32

5.27

17.18





Diluted earnings per share

11.32

5.27

17.18

 

 

 

7. PROPERTY, PLANT AND EQUIPMENT

During the period plant and equipment has been purchased amounting to $430,000 (6 months to 30 June 2015: $370,000). There were no asset disposals in the reporting period. Capital commitments contracted for but not provided for at 30 June 2016 amounted to $222,567 (30 June 2015: $nil).

 

 

8. NET CASH

 


30 June

2016

$'000

 

30 June

2015

$'000

 

31 December

2015

$'000





Cash and short-term deposits

5,040

9,722

6,508





Current interest bearing loans and borrowings:




Finance leases

(759)

(703)

(906)





Non-current interest bearing loans and borrowings:




Finance leases

(1,661)

(1,827)

(1,960)





Net cash

2,620

7,192

3,642

 

9. AVAILABILITY OF INTERIM REPORT

The Interim report will be available at the Company's website www.journeygroup.plc.uk, in accordance with AIM Rule 20.

 


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