Source - RNS
RNS Number : 0035L
Bond International Software PLC
27 September 2016
 

FOR IMMEDIATE RELEASE                                                              27 September 2016

 

 

BOND INTERNATIONAL SOFTWARE PLC

 

UNAUDITED INTERIM RESULTS

 

Bond International Software Plc ("the Group"), the specialist provider of software for the international recruitment and human resources industries, with operations in the UK, USA and Asia Pacific, today announces its unaudited interim results for the six months to 30 June 2016.

 

HIGHLIGHTS

 

·      Disposal of Strictly Education Limited in April 2016 for a total consideration of £11.3m

·      Bank debt fully repaid in the period

·      Disposal of the HR and Payroll subsidiaries in August 2016 for a consideration of £27.3m cash and the assumption of £2.6m debt

 

 

 

For further information, please contact:

 

Bond International Software Plc:

Tel: 01903 707070

Steve Russell: Group Chief Executive

e-mail: [email protected]

Bruce Morrison: Finance Director


 
Buchanan:                                
 
Tel: 020 7466 5000

Richard Darby

e-mail : [email protected]

Stef Watson




Cenkos Securities plc:

 Tel: 020 7397 8900

Stephen Keys

Camilla Hume



Bond International Software Plc

 

Chairman's Statement

 

I am pleased to report the results for the six months ended 30 June 2016. 

 

Strategic review

 

As I reported to you in March 2015, the Board had decided to undertake a wide ranging review of all the strategic options available to the Group including a strategic partnership, acquisitions to increase the scale of the Group, a sale of the Company or a new or extended bank facility to continue to invest in the Company.

Having considered all the options available to the Group, the Board determined that the way to deliver the best return to shareholders as a whole is through a programme of divestments. 

On 29 April 2016 the Group completed the first of these disposals with the sale of Strictly Education Limited to Education Services Solutions Limited, for a total consideration of £11.3m, comprising an initial cash consideration of £7.0m and a loan note of £4.3m which is repayable within six months of completion. Further details of the disposal and its impact on the interim results is set out in note 7.

On 22 July 2016 the Group announced that it had entered into a conditional agreement with FMP Global Bidco Limited for the sale of the entire issued share capital of its payroll subsidiaries comprising Bond HR and Payroll Software, Bond Payroll Services and Eurowage Limited, for a net cash consideration of £27.4 million and the assumption of £2.0 million of net debt. The sale was conditional on shareholder approval in a general meeting; the Purchaser's debt financing for the acquisition being completed, and finalisation of documentation with Barclays Bank Plc for the continuation of existing facilities for the payroll subsidiaries.  The conditions of the agreement were subsequently satisfied and the sale completed on 19 August 2016.

On 12 September 2016 the Group announced that it had entered into a conditional agreement for the sale of the entire issued share capital of its staffing software subsidiaries comprising Bond International Software (UK) Limited, Bond International Software Inc, Bond International Software Pty Limited, Bond International Singapore Pte Limited, Bond International Software China Limited, Bond International Japan KK for a cash consideration of £17.25m subject to adjustments for net debt and net working capital.  The agreement is conditional upon shareholders voting in favour of a resolution to approve the sale at a general meeting of shareholders on 28 September 2016.

Further, on 30 June 2016, Constellation Software Inc ("Constellation") announced an unsolicited offer for the issued and to be issued Ordinary Shares of the Company not already owned by Constellation and the parties acting in concert with Constellation, at 105 pence per Ordinary Share in cash (the "Constellation Offer"). The full terms of the Constellation Offer were set out in the Constellation Offer Document published by Constellation on 18 August 2016.  On 8 September 2016, Constellation announced the level of acceptances, being approximately 6.3 per cent of the Company's existing issued ordinary share capital, extended the first closing date to 1.00 p.m. on 29 September 2016 and lowered the acceptance condition from not less than 90 per cent of the Ordinary Shares to which the Constellation Offer relates to more than 50 per cent voting rights normally exercisable at a general meeting of the Company.

 

On 1 September 2016, the Directors published their response to the Constellation Offer, which concluded that the Directors, who have been so advised by Houlihan Lokey, having considered the merits of the Constellation Offer, believe that it is not in the interests of Shareholders to accept the Constellation Offer. In providing advice to the Directors, Houlihan Lokey took into account the Directors' commercial assessment. 

 

On 2 September 2016, the Directors issued a statement confirming that ESW Capital, LLC. had made a highly preliminary approach to the Company without any indication of the price, timing, terms or transaction structure of any offer ESW might make, if any formal offer is made.  There can be no certainty that a firm offer by ESW will be made, nor as to the terms on which any firm offer might be made.

 

On 23 September 2016, Constellation and the Directors announced a recommended revised cash offer from Constellation at 115.5p per share. On 22 September 2016 Constellation and parties acting in concert with Constellation either owned or had received valid acceptances in respect of a total of 35.9%.

 

Financial overview 

Following the decision to pursue a programme of divestments, the Board is required to treat the activities of those businesses which it is actively considering the sale of, as discontinued operations.  As a consequence the 2015 results have been restated to treat those same businesses as discontinued operations.

The Board has identified three separate disposal groups, Strictly Education Limited, HR and Payroll and Recruitment Software. The results of each of those disposal groups and their assets and liabilities are disclosed in note 7. The remaining activities of the Company are disclosed as that of a holding company.

Following the reclassification the Group has made an operating loss on continuing activities of £639,000 in 2016 compared with a loss of £720,000 for the same period in 2015 and a loss before tax of £762,000 (2015: £937,000).  The loss principally comprises the operating costs of the holding company for the period.

There is a profit from discontinued activities of £9,003,000 (2015: £1,520,000) including a profit on the sale of Strictly Education Limited of £8,073,000 with the balance of £930,000 arising from the operations of the disposal groups. The result is earnings per share of 19.30p (2015: 1.65p).

The Group generated £2,469,000 of cash from its operating activities (2015: £2,863,000) and a further £6,538,000 (net of cash disposed of) through the sale of Strictly Education Limited. The Group paid out £500,000 for deferred consideration for Eurowage Limited and £1,860,000 on capital expenditure on property, plant and equipment and intangible assets (2015: £2,253,000).  As a result of these cash flows the Group has repaid its bank borrowings of £5,950,000 in full. The group has financial liabilities at 30 June 2016 comprising a loan note due to the vendor of Eurowage Limited - which had a fair value of £2,609,000 (At 31 December 2015: £2,670,000). 

 

 

Martin Baldwin

Chairman

27 September 2016


Bond International Software Plc

 

Consolidated statement of comprehensive income for the six months ended 30 June 2016

 

 



 

            Six months ended 30 June

Year ended

31 December


Note

  2016

2015

2015



£000

(Unaudited)

£000

(Unaudited)

£000

(Audited)



Continuing operations







Administrative expenses


(639)


(720)


(1,636)

 







Operating loss


(639)


(720)


(1,636)

Finance income


-


-


7

Finance costs


(123)


(217)


(411)








Loss before income tax


(762)


(937)


(2,040)

Income tax

3

(1)


120


270








Loss from continuing operations


(763)


(817)


(1,770)








Discontinued operations







Profit/(loss) for the period from discontinued operations

 

7

 

9,003


 

1,520


 

(443)








Profit/(loss) the period attributable to owners of the parent


 

8,240


 

703


 

(2,213)

 







 
 
Earnings per share from continuing operations attributable to the owners of the parent during the period (pence per share)

 

 

 

 

4






 







Basic earnings per share

cFrom continuing operations

FFrom discontinued operations


 

(1.79)

21.09


 

(1.92)

3.57


 

(4.15)

(1.04)

 

Total


 

19.30


 

1.65


 

(5.19)

 

Diluted earnings per share

cFrom continuing operations

From discontinued operations


 

 

(1.79)

21.09


 

 

(1.92)

3.57


 

 

(4.15)

(1.04)

 

Total


 

19.30


 

1.65


 

(5.19)

 



 

Bond International Software Plc

 

Consolidated statement of changes to shareholders' equity for the six months ended 30 June 2016 (unaudited)

 



 

            Six months ended 30 June

Year ended

31 December



  2016

2015

2015



£000

(Unaudited)

£000

(Unaudited)

£000

(Audited)



Profit/(loss) for the year attributable to the owners of the parent


 

8,240


 

703


 

(2,213)

 







Other comprehensive income net of tax







Currency translation differences on foreign currency net investments


 

291


 

(217)


 

353








Total other comprehensive income net of tax


291


(217)


353








Total comprehensive income for the financial period attributable to the owners of the parent


 

8,531


 

486


 

(1,860)

Total comprehensive income attributable to equity shareholders arises from:

-       Continuing operations

-       Discontinued operations


 

 

(763)

9,294


 

 

(817)

1,303


 

 

(1,770)

(90)










8,531


486


(1,860)


 

 

There are no taxation effects in respect of the foreign currency translation differences.


Bond International Software Plc

 

Consolidated balance sheet at 30 June 2016

 



 

      At 30 June

At

31 December

 



  2016

2015

2015


 

Note

£000

(Unaudited)

£000

(Unaudited)

£000

(Audited)




 

ASSETS







Non-current assets

Property, plant and equipment

Intangible assets

Deferred tax assets

Trade and other receivables


 

1,673

-

3

-


 

2,739

40,911

1,447

630


 

1,697

-

2

631










1,676


45,727


2,330








Current assets

Inventories

Trade and other receivables

Cash and cash equivalents


 

-

5,336

3,341


 

64

8,374

4,084


 

-

438

2,437










8,677


12,522


2,875

Assets of disposal group classified as held for sale

7

44,484


-


48,493

 

 


 

53,161


 

12,522


 

51,368








Total assets


54,837


58,249


53,698








EQUITY

Share capital

Share premium account

Merger reserve

Equity option reserve

Currency translation reserve

Retained earnings


 

427

24,052

989

107

(367)

17,332


 

427

24,049

989

175

(1,228)

11,940


 

427

24,052

989

170

(658)

9,029

 

Total equity attributable to the owners of the parent


 

 

42,540


 

 

36,352


 

 

34,009








LIABILITIES







Non-current liabilities

Borrowings

Deferred tax liabilities


 

-

-


 

2,962

2,748


 

2,563

-



 

-


 

5,710


 

2,563








Current liabilities

Trade and other payables

Current income tax liabilities

Borrowings


 

539

-

2,609


 

12,312

136

3,739


 

652

-

5,950

 

 


 

3,148


 

16,187


 

6,602

Liabilities of disposal group classified as held for sale

7

9,149


-


10,524

 

 


 

12,297


 

16,187


 

17,126








Total liabilities


12,297


21,897


19,689

 







Total liabilities and equity


54,837


58,249


53,698







 

                        

 

 

Bond International Software Plc

 

Consolidated cash flow statement for the six months ended 30 June 2016

 



 

Six months ended 30 June

Year ended

31 December



  2016

2015

2015


Note

£000

(Unaudited)

£000

(Unaudited)

£000

(Audited)




Cash flows generated from operating activities

Cash generated from operations

Interest paid

Income tax paid

 


6

 


2,469

(72)

(63)


 


2,863

(173)

(317)


6,595

(248)

(866)








Net cash from operating activities


2,334


2,373


5,481








Cash flows from investing activities

Payment of deferred consideration arising on business combinations

Proceeds from sale of subsidiaries (net of cash disposed of)

Interest received

Purchase of property, plant and equipment

Purchase of other intangible assets

Proceeds from sale of property, plant and equipment


 

 

(500)

 

6,538

28

(249)

(1,611)

 

-


 

 

-

 

-

41

(216)

(2,037)

 

-


 

 

 (3,370)

 

-

66

(377)

(4,159)

 

12








Net cash flow used in investing activities


4,206


(2,212)


(7,828)








Cash flows from financing activities

Issue of new ordinary shares

Increase in bank borrowings

Repayment of bank loans

New finance leases

Repayment of finance leases

Equity dividend paid

 

 

 

 

 

 

5

 

-

-

(5,950)

206

(35)

-


 

112

-

-

164

(48)

-


 

115

2,100

(216)

164

(83)

(1,067)








Net cash inflow from financing activities


(5,779)


228


1,013

 







Increase/(decrease) in cash and cash equivalents for the period


 

761


 

389


 

(1,334)

 







Cash, cash equivalents at the beginning of the period


2,437


3,688


3,688

Effects of foreign exchange rate changes


143


7


83

 

Cash, cash equivalents at the end of the period


3,341


4,084


 

2,437

 

            

For the purposes of the cash flow statement, cash includes deposits at call with financial institutions less bank overdrafts forming part of the working capital management.

 

 

 

 

 

 

 



 

Bond International Software Plc

 

Consolidated statement of changes to shareholders' equity for the six months ended 30 June 2016 (unaudited)

 

 


Attributable to the owners of the parent

 

 

 

Six months ended 30 June 2016

Share capital

Share premium account

 

Merger

reserve

Equity option reserve

Currency translation reserve

 

Retained earnings

 

 

Total

(Unaudited)

£000

£000

£000

£000

£000

£000

£000









At 1 January 2016

427

24,052

989

170

(658)

9,029

34,009









Comprehensive income:








Profit for the period

-

-

-

-

-

8,240

8,240

Other comprehensive income net of tax:

    Currency translation differences

 

 

-

-

 

 

-

-

291

-

291

 

Total comprehensive income for the year

 

 

-

-

 

 

-

-

291

8,240

8,531









Share options lapsed or exercised

-

-

-

(63)

-

63

-

 

At 30 June 2016

 

427

24,052

 

989

107

(367)

17,332

42,540

 

 

 



Attributable to the owners of the parent

 

 

Six months ended 30 June 2016

Share capital

Share premium

account

 

Merger

reserve

Equity option reserve

Currency translation reserve

 

Retained earnings

 

 

Total

(Unaudited)

£000

£000

£000

£000

£000

£000

£000









At 1 January 2015

426

23,938

989

246

(1,011)

12,233

36,821









Comprehensive income:








Profit for the period

-

-

-

-

-

703

703

Other comprehensive income net of tax

   Currency translation differences

 

 

-

-

 

 

-

-

(217)

-

(217)

Total comprehensive income for the period

 

 

-

-

 

 

-

-

(217)

703

486









Dividend

-

-

-

-

-

(1,067)

(1,067)

Issue of ordinary shares

1

111

-

-

-

-

112

Share options lapsed or exercised

-

-

-

(71)

-

71

-

 

At 30 June 2015

 

427

24,049

 

989

175

(1,228)

11,940

36,352

 

 

 



Attributable to the owners of the parent

 

 

 

Year ended 31 December 2015

Share capital

Share premium account

 

Merger

reserve

Equity option reserve

Currency translation reserve

 

Retained earnings

 

 

Total

(Audited)

£000

£000

£000

£000

£000

£000

£000








At 1 January 2015

426

23,938

989

246

(1,011)

12,233

36,821








Comprehensive income:








Profit for the financial year

-

-

-

-

-

(2,213)

(2,213)

Other comprehensive income net of tax

  Currency translation differences

 

-

-

 

 

-

-

353

-

353

Total comprehensive income for the period

 

-

-

 

-

-

353

(2,213)

(1,860)








Dividend paid

-

-

-

-

-

(1,067)

(1,067)

Issue of ordinary shares

1

114

-

-

-

-

115

Share options lapsed or exercised

-

-

-

(76)

-

76

-

 

At 31 December 2015

427

24,052

 

989

170

(658)

9,029

34,009

                  

 

 

Bond International Software Plc

 

Notes to the financial statements

 

1.             Basis of preparation

 

Bond International Software Plc is incorporated in England and domiciled in the United Kingdom. Its registered office is Courtlands, Parklands Avenue, Goring, West Sussex BN12 4NG and its principal activities is the provision of software solutions to companies operating in the recruitment industry. The financial statements are prepared in pounds sterling.

 

The interim financial statements do not include all of the information required for full annual financial statements and do not comply with all the requirements of International Accounting Standard (IAS) 34 'Interim Financial Reporting'.

 

The interim financial statements are unaudited and were approved by the Board of Directors on 27 September 2016.  The financial information contained in these statements does not constitute statutory accounts as defined in 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.  The statutory accounts for the year ended 31 December 2015 did not comply with the requirements of IFRS3 in the treatment of contingent consideration on the acquisition of Eurowage Limited and as a consequence the Auditor included a qualification in his Audit Report. The statutory accounts did not contain a statement made under Section 498(2) and (3) of the Companies Act 2006, and have been filed with the Registrar of Companies.

 

                Going Concern

                As referred to in the Chairman's Statement on page 1, the Company has entered in to programme of divestments and completed the sale of two divisions, one during the period ended 30 June 2016 and one after the period end. As a result the Company has reclassified the activities of the disposal group's as discontinued activities.  The Directors have considered the Company's position in the light of this strategy and believe that it remains a going concern.  If and when all business segments are disposed of the Directors will reconsider the position and determine whether the Company remains a going concern.  Whilst the negotiations for the disposal of the staffing software division are at an advanced stage, there remains a risk that it may not go ahead and the group continues as a going concern.  The Directors have considered the impact of this scenario on the Group's cash flows and prepared forecasts which support their conclusion that the Group is a going concern whatever the outcome of the negotiations.  



 

 

2.             Segmental Review

 

(i)            Operating segments

 

For management purposes, the Group was until recently organised into operating segments, which were represented by three divisions - Recruitment software, HR and Payroll software and Outsourcing. These divisions were the basis on which the Group has historically reported its segment information.  Following the decision to dispose of one or divisions of the Group, the activities of those divisions have been reclassified as discontinued and the segments reorganised into disposal groups. The results and assets and liabilities of those disposal groups are set out in note 7.

                                                                                                                 


 

       Six months ended 30 June

Year ended

31 December


2016

2015

2015


£000

£000

£000

Revenue




Recruitment Software

8,174

9,216

17,825

HR and Payroll Software

2,192

2,328

4,432

Outsourcing

7,326

8,874

17,430

 

 

 

17,692

 

20,418

 

39,687

Discontinued operations

(17,692)

(20,418)

(39,687)

 

 

 

-

 

-

 

-





Operating profit before the amortisation of intangible assets



Recruitment Software

1,283

1,242

2,089

HR and Payroll Software

509

681

1,329

Outsourcing

1,579

2,104

3,972

Central departments

(639)

(687)

(1,636)






2,732

3,340

5,754

Discontinued operations

(3,371)

(4,060)

(7,390)


 

(639)

 

(720)

 

(1,636)

 

 

3.             Income tax expense

 


 

            Six months ended 30 June

Year ended

31 December


2016

2015

2015


£000

£000

£000

Current tax

-       UK Corporation Tax

-       Adjustment in respect of prior years

 

-

-

 

(120)

-

 

(250)

 (7)

 

 

Total current tax

 

-

 

(120)

 

(257)

 

Deferred tax

1

-

(13)

 





 


1

(120)

              (270)

 

 



 

4.             Earnings per share

 

(a)           Basic

 

The basic earnings per share is calculated by dividing the profit attributable to equity holders of the parent company by the weighted average number of shares in issue.

 

                                                               

 

             Six months ended 30 June

Year ended

31 December


2016

2015

2015


£000

£000

£000

 

Profit attributable to equity holders of the company

 

8,240

 

703

 

(2,213)





Weighted average number of shares in issue (thousands)

 

42,697

 

42,627

 

42,661

 

(b)           Diluted

 

The diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding to assume the conversion of all dilutive potential ordinary shares.  The company has two categories of dilutive potential ordinary shares; non voting convertible shares and share options.  The non voting convertible shares  are assumed to have been converted into ordinary shares.  For the share options a calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price of the company's shares during the period) based on the monetary value of the subscription rights attached to outstanding share options. The number of shares calculated above is compared with the number of shares that would have been issued assuming the exercise of the share options.

 

                                                               

 

             Six months ended 30 June

Year ended

31 December


2016

2015

2015


£000

£000

£000

 

Profit attributable to equity holders of the company

 

8,240

 

703

 

(2,213)

 

Weighted average number of shares in issue (thousands) - basic

 

 

42,697

 

 

42,627

 

 

42,661

Adjustments for:




Share options

-

2

1

 

Weighted average number of shares in issue (thousands) - diluted 

 

 

42,697

 

 

42,629

 

 

42,662

 

 

5.             Dividend

 


 

            Six months ended 30 June

Year ended

31 December


2016

2015

2015


£000

£000

£000





Dividend approved for payment to equity shareholders







Dividend of nil per share (2015: nil)


-


-


-

Dividend paid to equity shareholders







Dividend of nil per share (2015: 2.5p)


-


-


1,067

 

 

 



 

6.             Reconciliation of profit before tax to net cash flow from operations

 


 

            Six months ended 30 June

Year ended

31 December


2016

2015

2015


£000

£000

£000





Continuing operations

(Loss)/profit before tax

 

(762)

 

863

 

(2,040)

Adjustments for:




Depreciation of property, plant & equipment

25

178

50

Amortisation of development costs

-

1,593

-

Amortisation of acquired intangible assets

-

703

-

Loss on sale of property, plant & equipment

-

-

-

Finance income

-

(41)

(7)

Finance cost

123

222

411





Operating cash flows before movements in working capital

 

(614)

 

3,518

 

(1,586)

Decrease in inventories

-

14

-

Decrease/(increase) in trade and other receivables

(135)

892

3

Decrease in trade and other payables

(97)

(1,561)

(123)





Cash generated from/(used in) continuing operations

(846)

2,863

(1,706)





Discontinued activities

Profit/(loss) after tax

 

9,003

 

-

 

(443)

Adjustments for:




Income tax

66

-

785

Depreciation of property, plant & equipment

103

-

355

Amortisation of development costs

1,817

-

3,274

Amortisation of acquired intangible assets

619

-

1,370

Impairment of goodwill

-

-

1,904

Loss on sale of property, plant and equipment

-

-

1

Profit on sale of subsidary

(8,073)

-

-

Finance income

(28)

-

(59)

Finance cost

3







Operating cash flows before movements in working capital

 

3,510

 

-

 

7,187

Decrease in inventories

(12)

-

(10)

Decrease/(increase) in trade and other receivables

415

-

1,774

Decrease in trade and other payables

(598)

-

(650)





Cash generated from discontinued activities

3,315

-

8,301





Cash generated from operations

2,469

2,863

6,595

 

               



 

 

7.             Non current assets held for sale and discontinued operations

 

Strictly Education

 

On 29 April 2016 the group completed the disposal of Strictly Education Limited which formed part of our outsourcing operations.   As a result of this disposal, these operations have been treated as discontinued operations for the period ended 30 June 2016.  A single amount is shown on the face of the income statement comprising the post-tax result of discontinued operations and the post tax loss recognised on the disposal of the business.

 

The table below provides further details of the amount shown in the income statement.  The income statements for prior periods have been restated to show the discontinued operation separately from continuing operations.

 


 

           Six months ended 30 June

Year ended

31 December


2016

2015

2015


£000

£000

£000

Revenue


3,176


4,911


9,960

Cost of sales


(711)


(1,124)


(2,392)








Gross profit


2,465


3,787


7,568

Administrative expenses


(1,907)


(3,006)


(5,915)

Amortisation of acquired assets


(37)


(68)


(184)








Profit before taxation


521


713


1,469

Taxation


(96)


(146)


(293)

 

Profit after taxation


 

425


     

 567


          

 1,176

Profit on disposal of business


8,073


-


-








Discontinued operations


8,498


567


1,176

  

   The net assets at the date of disposal were as follows:

 


£000



Property, plant and equipment

235

Goodwill

2,251

Other intangible assets

305

Trade and other receivables

1,253

Trade and other payables

(1,103)

Corporation tax

(103)

Deferred tax liability

(73)



Net assets at date of disposal

2,765

Profit on disposal

8,073



Total consideration

10,838



Satisfied by:


Cash payable on completion  (net of costs)

Cash disposed of with subsidiary

Loan note

6,740

(202)

4,300

 

 

 

10,838



 

 

7.            Non current assets held for sale and discontinued operations (cont'd)

 

                HR and payroll software and services

               

                The assets and liabilities of the disposal group comprising the HR and payroll software and outsourced services have been presented as held for resale following the acceptance of a conditional offer to buy the group.  The sale completed in August 2016.

 

Assets of the disposal group classified as held for sale


At 30

 June

2016

£000

At 30

 June

 2015

£000

At 31

December

2015

£000

 

Property, plant and equipment

 

100

 

-

 

97

Intangible assets

17,265

-

17,647

Inventory

Other current assets

49

2,176

-

-

36

2,257





19,590

-

20,037

 

Liabilities of the disposal group classified as held for sale


At 30

 June

2016

£000

At 30

 June

 2015

£000

At 31

December

2015

£000

 

Trade and other payables

 

2,091

 

-

 

1,878

Deferred tax

604

-

627





2,695

-

2,505

 

                Analysis of the results of discontinued operations and the results recognised on remeasurement of assets of HR and payroll software and services disposal group is as follow:


 

           Six months ended 30 June

Year ended

31 December


2016

2015

2015

 


£000

£000

£000

 

Revenue

6,342

6,292

11,902

Expenses (excluding amortisation of intangible assets on acquisition)

 

(4,812)

 

(4,287)

 

(8,258)

Operating profit before the amortisation of intangible assets on acquisition and exceptional items

 

1,530

 

2,005

 

3,644

Amortisation of intangible assets on acquisition

(402)

(424)

(818)

Exceptional items

Finance income

-

27

-

39

(559)

59





Profit before taxation

1,155

1,620

2,326

Taxation

(205)

(328)

(540)

 

Profit after taxation

 

950

     

 1,292

          

 1,789



 

        

 

7.            Non current assets held for sale and discontinued operations (cont'd)

               

                Recruitment software disposal group

                The assets and liabilities of the disposal group comprising the recruitment software businesses have been presented as held for resale following the acceptance of a conditional offer to buy the group.  The sale is expected to complete in October 2016.

 

Assets of the disposal group classified as held for sale


At 30

 June

2016

£000

At 30

 June

 2015

£000

At 31

December

2015

£000

 

Property, plant and equipment

 

755

 

-

 

620

Intangible assets

19,663

-

19,166

Deferred tax assets

Current assets

1,313

3,163

-

-

966

3,923





24,894

-

24,675

 

Liabilities of the disposal group classified as held for sale


At 30

 June

2016

£000

At 30

 June

 2015

£000

At 31

December

2015

£000

 

Trade and other payables

Finance lease liabilities

 

4,436

329

 

-

-

 

4,927

146

Deferred tax

1,689

-

1,756





6,454

-

6,829

 

                Analysis of the results of discontinued operations and the results recognised on remeasurement of assets of the Staffing Software disposal group is as follow:


 

           Six months ended 30 June

Year ended

31 December


2016

2015

2015


£000

£000

£000

Revenue

8,174

9,216

17,825

Expenses (excluding amortisation of intangible assets on acquisition)

 

(8,291)

 

(9,565)

 

(19,006)

Operating loss before the amortisation of intangible assets on acquisition and exceptional items

 

(117)

 

(349)

 

(1,181)

Amortisation of intangible assets on acquisition

(181)

(181)

(368)

Impairment of intangiible assets

Exceptional items

-

(380)

-

-

(1,904)

-





Loss before taxation

(678)

(530)

(3,453)

Taxation

233

190

48

 

Loss after taxation

 

(445)

     

 (340)

          

 (3,405)

 


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