TIDMAN.
RNS Number : 5026A
Alternative Networks plc
08 June 2016
Alternative Networks plc
Interim Results for the six months ended 31 March 2016
Alternative Networks plc, ('the Company' or 'the Group'), a
leading provider of IT managed services and independent
business-to-business communications, reports its Interim Results
for the six months ended 31 March 2016.
HIGHLIGHTS
-- Trading performance for the six months ended 31 March 2016
mixed but with encouraging underlying trends
-- Continued good growth in recurring revenues in Advanced
Solutions, with a higher level of non-recurring revenues expected
in the second half
-- Mobile performance impacted by challenging market conditions
and reduction in roaming tariffs implemented by the carriers, as
announced in February 2016. Evidence of improved performance in
Mobile following introduction of new tariffs and arrangements with
carriers
-- Mobile subscriber growth strong with 9% increase in the base
compared to the equivalent prior year period
-- Continued strong operating cash conversion (96% of adjusted
EBITDA). Resigned extended and improved banking facilities
-- High level of backlog and a healthy pipeline of new business
together with cost reductions are expected to support H2
performance
-- Progressive dividend policy maintained:
o Interim dividend of 6.2p payable on 8 July 2016, up 13% year
on year
o Full year dividend expected to grow by no less than 10% year
on year
KEY FINANCIAL INFORMATION
Unaudited results for the 6 months 2016 2015 Change
ended 31 March
(restated)
GBP'000 GBP'000 %
Revenue 69,300 71,984 -4%
Adjusted EBITDA* ** 7,483 10,270 -27%
Adjusted operating profit* 5,889 9,037 -35%
Adjusted profit before taxation* 5,351 8,337 -36%
Adjusted earnings per share***
- basic 8.7p 13.0p -33%
- diluted 8.6p 12.7p -32%
Interim dividend per share 6.2p 5.5p +13%
Operating profit 3,683 6,301 -42%
Profit before tax 3,145 5,601 -44%
Earnings per share - basic 5.3p 9.4p -44%
- diluted 5.2p 9.3p -44%
* Adjusted profits are stated before intangible asset
amortisation excluding software, exceptional items and share based
payments.
** Earnings before interest, taxation, depreciation and
amortisation.
*** Adjusted earnings per share is based on adjusted profit
after tax as set out in note 5
Mark Quartermaine, Chief Executive of Alternative Networks,
commented:
"There have been market challenges to our Mobile business, over
the past six months. However we have remained competitive, have
continued to improve our offering to customers and win new
customers. We have taken measures to mitigate the financial impact
of changes to roaming tariffs and maintained our focus on becoming
one of the UK's leading providers of IT managed services to UK
businesses. There are plenty of indicators to give us cause for
optimism about the relevance and appeal of our offer and we will
continue to drive organic growth. Our increase in the dividend
reflects this confidence in the business and its cash generative
nature."
Outlook
With changes to Mobile tariffs and carrier arrangements now in
place, we have greater confidence on Mobile performance for the
second half. Our high level of backlog also gives us a good
indication of the level of non-recurring revenue we can expect for
in Advanced Solutions, and we continue to develop our offer to
attract further new recurring revenues from mid-sized businesses,
while controlling our cost base as we have done in the first half.
As a consequence, we expect a higher weighting of revenue to the
second half than has been the case in previous years.
Enquiries:
Alternative Networks
Mark Quartermaine, Chief Executive
Officer
Gavin Griggs, Chief Financial Officer 0870 190 7444
Investec Bank PLC - Nominated Adviser
and Joint Broker Patrick Robb / Carlton
Nelson / Andrew Pinder 020 7597 5970
finnCap Limited - Joint Broker
Stuart Andrews 020 7220 0565
Bell Pottinger
Elly Williamson / Anna Legge 020 3772 2500
CHAIRMANS STATEMENT
Introduction
As announced in our trading update in February, in the first
half of 2016 Alternative Networks faced significant pressures in
its Mobile business. This has impacted on our results but the
business remains strong and we have continued the implementation of
our strategy with further investment in our product set and
customer service.
Results
Reported revenue, gross profit and adjusted EBITDA decreased 4%,
9% and 27% respectively due to the impact of the pressures on the
Mobile business. This is in line with our guidance in February and
April and includes the effect of mitigating actions taken by
management. Performance has been robust in the face of this
challenge. Revenue in Advanced Solutions was broadly flat at
GBP37.0m (H1 2015: GBP37.2m), with an increase in recurring revenue
offset by a decline in non-recurring revenue after the slippage of
a significant contract. We ended the first half of the financial
year with a high level of backlog of signed projects of GBP7.7m and
the prospect of a relatively stronger second half. Revenue in
Mobile declined 7% to GBP18.9m (H1 2015: 20.4m) due to new carrier
roaming tariffs compounded by a reduction in roaming usage
revenues.
Cash generation remained strong, with 96% of adjusted EBITDA
converted to cash. The period end net debt balance was GBP19.0m
versus GBP18.7m at 30 September 2015. In addition, we have recently
agreed a new syndicated bank loan facility with a further accordion
to support our growth plans.
Dividend
The Board has declared an interim dividend of 6.2p, up 13% year
on year, in keeping with its intention to grow the dividend at
least 10% each year. This is an expression of our confidence in the
business regardless of short term challenges and we expect the full
year dividend to grow by no less than 10%.
Review of operations
A number of positive indicators underpin our belief in the
relevance of our offering to customers and the growth this will
allow. In Advanced Solutions these positive indicators include the
backlog level, growth of 16% in Online Desktop driven by new
customers for our Online Desktop product, and further new client
wins across the portfolio, including in our core verticals, notably
Healthcare. A decrease in the margin was due to price mix on
hardware. In response to the challenges in Mobile, where new
carrier roaming tariffs have led to a reduction in roaming usage
revenues, we took action to mitigate the impact by negotiation with
carriers, and we see potential for an improved second half in this
business too. We are also encouraged by the fact that our
subscriber base in Mobile grew 9% compared to the equivalent prior
year period. Proactive management has been a key feature of our
response to a challenging half. Management made efforts to reduce
the cost base and devoted time to the continuing development of the
customer offering, including enhancement of the mobile workspace
proposition, the launch of Alternative Platform as a Service
(APaaS), and the improvement of customer service across our
portfolio with strategic projects to improve quality and efficiency
of service.
Growth strategy
After significant investment in our platform throughout 2015 and
continued investment in the first half of 2016, we are well
positioned to return to growth. We remain one of the UK's leading
providers of IT managed services to UK businesses. We will continue
to use our breadth of products and services to establish ourselves
as the long term supplier of choice for a larger customer target
base and to drive organic growth. Our strong cash generation and
our new financing arrangements underpin our active interest in
acquisitions which complement our product set and allow us to build
further onto our platform. We are seeing opportunities which we
will continue to screen to ensure we make only acquisitions which
add value for customers and shareholders alike.
James Murray
Executive Chairman
Performance & strategic overview
The Group's strategy remains unchanged; to become a leading IT
managed services provider for UK businesses via organic and
acquisitive growth.
Business performance
Performance in the first half of 2016 has been robust in the
face of a significant challenge to our Mobile business, with
positive indicators including a high level of Advanced Solutions
order backlog, new wins in Online Desktop and a healthy pipeline of
new business opportunities across the portfolio offset by the
financial results in the Mobile division.
In Advanced Solutions the solid underlying performance seen over
recent periods has continued. Recurring revenue was 5% ahead of the
first half of the prior year, while non-recurring revenue was 8%
below due to the phasing of project completions into the second
half of the current financial year resulting in a high level of
non-recurring signed order backlog of GBP7.7m. This growth is due
to new orders from both new and existing customers and is expected
to result in a higher weighting of revenue to the second half than
has been the case in previous years. Hosted Managed Services and On
Demand Services continue to perform in line with expectations. In
particular, the hosted desktop market continues to grow and the
Group has seen 16% revenue growth with our Online Desktop product.
New orders have been generated across the portfolio, with notable
new clients wins in our core verticals. In the Healthcare vertical,
Alternative was chosen by North Lincolnshire & Goole Healthcare
Trust to replace their telephony estate with an IP solution
covering 3,500 users and to provide five year support. In addition
the Group has won a number of new Online Desktop and Unified
Communications solution customers demonstrating the Group's
credentials in this area.
The gross margin in Advanced Solutions decreased slightly in the
period to 38% (2015: 39%) due to the decrease in higher margin
professional services completions, mostly held in backlog and
therefore expected to execute in the second half of the current
financial year together with price mix on hardware orders.
As reported in February, within Mobile, both revenues and
profitability have been impacted by the new carrier roaming tariffs
which have led to a reduction in roaming usage revenue. Mobile
revenue declined by 7% year on year with gross margins declining to
41% (2015: 46%). Mobile revenue now represents 27% of the Group's
overall revenue.
In response to this, the Group has negotiated improved cost
bases in data roaming, and has mitigated the risks surrounding
future operator changes, which are expected to improve Mobile
business performance in the second half of the financial year.
Fixed Voice revenues were 7% below the comparative period in the
prior year, in line with market trends. Gross profit has declined
at a similar rate owing to ongoing churn mitigated by the signing
of new commercial agreements. The key focus remains the migration
of the fixed line base to SIP channels, the number of which have
almost doubled year on year. Overall, the Fixed Voice business now
represents 19% of the Group's revenue. During the period we have
added a new SIP provider, resulting in improved margins and
international capabilities, which will continue to support the
healthy growth in this area.
The Group has also reviewed its cost base and taken action that
will reduce overheads in the second half of the financial year.
Product development and growth platform
In 2016 the Group is capitalising on the transformational
activities of 2015, by expanding the product portfolio, developing
the customer service proposition and further improving our portal
functionality. Furthermore, we have made key investments into the
Group's storage platform. These combined investments are expected
not only to improve our service offerings to customers, but also to
increase productivity and collaboration amongst our people and
allow easier integration of any future acquisitions.
The Board is intent on building a broader and stronger platform
for growth. We have set out our vision to be the leading IT managed
services provider of choice to UK businesses. The Group's
infrastructure and hosting services are critical to the delivery of
this strategy and in line with this, the first half of 2016 has
seen a number of major initiatives, including:
o Enhancement of our mobile workspace proposition, with new
products covering device management, data optimisation and mobile
security capabilities; and
o APaaS, has been successfully launched with seven customers
(1,500 handsets) signed on to the platform already, and a growing
pipeline developing.
In order to further develop the Group's cloud offering, during
the second half of the financial year we expect to launch
OnlineCompute, a platform designed to provide Infrastructure as a
Service (IaaS) for enterprise workloads, complementing existing
Hosted Managed Services. This will be delivered under our own
monitoring and management, allowing us to offer a range of options
and deliver a best fit hybrid solution to our clients' business
requirements.
In addition to specific product development, the Group has
initiated a number of strategic projects to improve service across
the portfolio, including completion of the rollout of ServiceNow (a
market leading case management system) allowing us to manage
customer's issues, or changes, in a consistent and simplified
manner, of which initial customer feedback has all been very
positive. Furthermore we have instigated a CPQ (configure, price,
quote) process to ensure we improve the quality and efficiency of
the bid process for both customers and our own benefit.
Organic growth
The Group continues to build successfully on the following four
key areas of focus to deliver further organic growth:
o Winning new customers in our target markets;
o Using improved customer service and Synapse, combined with the
acquired portals, to drive improved customer retention across the
wider product set;
o Improved product penetration across our customer base; and
o Product development and innovation to increase value to our customer base.
Our target customers are in the mid-sized enterprise market,
particularly those customers with multi-sites and with 80 to 1,000
employees. With an ever broadening product base, there are multiple
entry points to these customers.
The Group's ability to win large contracts with new customers
has been proven once again including sizeable deals with North
Lincolnshire & Goole Healthcare Trust, Optima, Fellowes and
HCC.
We continue to focus on winning "right size" customers (a
'large' customer being defined as having a monthly spend in excess
of GBP10,000, increased from a previously reported GBP1,000
reflecting the evolving focus of the Group). The proportion of
total Group revenue arising from this larger right size group has
remained constant at around 57%, reflecting growth across the
entire customer base. At the period end the Group had 181 large
customers, (31 March 2015: 185) and the proportion taking more than
three products has risen from 30% in 2015 to 32% in H1 2016
demonstrating the success of the upsell strategy.
The number of all customers taking more than one product year on
year has been maintained at 46% in line with the Group's stated
strategy of growing the average size of the customers, via higher
enterprise sales and cross sales.
Portal development
Central to our strategy is the use of Synapse, the Group's
dynamic service interface, offering customers significant service
and flexibility benefits. In H2 2016 we have released Synapse2,
which will ultimately absorb and encapsulate all Group portal
functions, including the current Synapse portal. The first phase of
this new portal will incorporate support ticketing across all
products and services of the Group, bringing these into a single
portal. The portal will integrate directly with ServiceNow enabling
our customers to engage in real time with our ServiceNow ticketing.
The current Synapse portal will continue to be the primary source
for all other customer information.
Growth by acquisition
The Group's cash generation has enabled the Group to reduce net
debt significantly since the completion of the two acquisitions
made in 2014. This, combined with the strong balance sheet and new
financing arrangements signed in May 2016, leaves us well placed to
capitalise on further opportunities should they arise, and the
Group continues to monitor the market proactively for further
"right-fit" acquisitions. Acquisitions are being targeted to
complement the existing products and to further expand our
capabilities and product set in the Advanced Solutions area, with a
focus on managed and hosted services.
Results & trading overview
Despite the performance of Mobile, The Group ended the half year
with a number of positive indicators, including a high level of
Advanced Solutions order backlog, rising Fixed Voice margins, new
wins in Online Desktop, a healthy pipeline of new business
opportunities over the portfolio and a number of new products and
offerings that are expected to be launched in the second half of
the financial year.
Advanced Solutions Mobile Fixed Voice Group
--------------------- --------------------- -------------------- ---------------------
Six months Six months Six months Six months
to Change to Change to Change to Change
31 March 31 March 31 March 31 March
2016 % 2016 % 2016 % 2016 %
GBPm GBPm GBPm GBPm
Revenue 37.0 - 18.9 -7% 13.4 -7% 69.3 -4%
Recurring 23.0 5% 18.9 -7% 13.4 -7% 55.3 -2%
Non-recurring 14.0 -8% 14.0 -8%
Gross profit 14.0 -4% 7.8 -18% 5.9 -7% 27.7 -9%
Margin 37.9% -130bps 41.0% -520bps 44.1% - 39.9% -230bps
Total reported revenue decreased 4% to GBP69.3m (2015:
GBP72.0m). The Advanced Solutions business was flat overall but
recurring products were up 5% (to GBP23.0m). Revenue in Mobile was
7% down on the equivalent period in the prior year, affected
largely by new carrier roaming tariffs that have compounded a
reduction in roaming usage revenues. The Fixed Voice business
continued in managed decline, ending the period down 7% to GBP13.4m
revenue.
Gross profit decreased by 9% (GBP2.7m), from GBP30.4m to
GBP27.7m, with GBP1.6m of this decline in the Mobile division.
Gross margin decreased by 230 basis points from 42.2% to 39.9% due
to a reduction in higher margin non-recurring profits in Advanced
Solutions and Mobile, offset slightly by improved profitability in
Fixed Voice.
Adjusted EBITDA at GBP7.5m was down 27% (GBP2.8m). This is
almost entirely due to the decreases in gross profit as the
operating cost base has been maintained year on year despite the
Group expanding its product set, and moving to new premises in
2015. Actions have been taken to reduce the cost base which will
benefit the second half of the financial year.
Adjusted EBITDA is stated before non-cash intangible asset
amortisation of GBP1.8m (H1 2015: GBP2.0m), IFRS2 share option
costs of GBP0.1m (H1 2015: GBP0.7m) and non-recurring restructuring
charges of GBP0.2m. Restructuring charges consist of further
redundancies and professional fees as the Group continues to
further increase operational efficiencies across core
functions.
Advanced Solutions
6 months to 6 months 12 months to
31 March 2016 to 30 September
31 March 2015
2015
GBPm
Revenue GBPm GBPm
Recurring
Managed services 8.6 8.7 17.6
Online desktop 1.8 1.6 3.3
Maintenance 5.6 5.6 11.6
Connectivity 4.7 3.9 8.3
Billing 2.3 2.0 4.2
Subtotal 23.0 21.8 45.0
Non-Recurring
Hardware / software 10.9 12.1 26.3
Professional Services 3.1 3.3 6.6
Subtotal 14.0 15.4 32.9
Total 37.0 37.2 77.9
Gross Margins
Recurring 43% 44% 44%
Hardware / software 21% 25% 21%
Professional services 58% 53% 59%
Advanced Solutions 38% 39% 38%
In total, Advanced Solutions revenues are broadly level half
year on half year at GBP37.0m, with the improvement in recurring
revenues offsetting the reduction seen in non-recurring revenues,
with the latter seeing slippage on one specific contract which is
expected to occur in the second half. As a result of the latter,
the backlog of signed projects has risen to GBP7.7m, of which the
majority is expected to recognised in the second half.
This growth in backlog is due to new orders from both new and
existing customers and is expected to result in a higher weighting
of revenue to the second half than in previous years.
As detailed above, new orders have been generated across the
portfolio, with notable new clients in core verticals for
Alternative, such as Healthcare.
The gross margin in Advanced Solutions is slightly lower than
the prior year at 38% (2015: 39%) as a result of lower completions
in high margin Professional Services.
Managed services
Managed services encompass the Group's offerings in all hosting,
cloud and utility services, including all outsourcing services.
Growth in this area is a key focus with both existing and new
customers. High margins in this area represent the added value
nature of the services provided. The 2% decline in revenue reflects
a decrease in the lower margin pure hosting and colocation revenue
as the Group encourages clients to move towards higher margin,
fully managed services.
Online desktop
Online desktop represents the Group's cloud based Desktop as a
Service (DaaS) remote access offering. 16% revenue growth in the
period year on year reflects our key position in this growing
market.
Maintenance
Maintenance revenues were flat half year on half year as a
result of growth in the customer base as we connect a healthy
pipeline of new business, offset by the loss of one larger customer
in February 2016. The Group continues to offer this service as an
ongoing component of longer term contracts. Margins are also
consistent year on year as the group has been able to renew
contracts at historical pricing levels due to the service quality
available to clients, and proactively churn any that involve lower
pricing.
Connectivity
Connectivity revenues increased 20% to GBP4.7m in the period.
This growth was generated from growth in data connectivity sales
solutions for both existing and new customers. Sales growth has
arisen from a number of key wins, including Findel plc. Margins
have risen slightly year on year reflecting a broadened supplier
base.
Hardware & software
Hardware and Software revenues comprise all individual
non-recurring direct sales, either as single sales or as part of
wider installation and IT service projects. Revenue decreased 9%,
owing to lower completions in the period as customers extended lead
times on certain large projects due to wider market uncertainties.
Gross margins have reduced across the Group due to a number of
large deals where competitive pricing has been offered in order to
secure further growth opportunities in higher margin products and
services with recurring revenue.
Professional services
Professional services revenue, comprising a mix of IT solution
design and installation of data hardware, declined 6% to GBP3.1m.
On the system installation side of the business, revenues rose 60%
to GBP2.1m owing to key sales into larger enterprise clients.
However this was offset by an expected decline in revenue on the IT
side, as a result of the completion of a large migration contract
for a law firm in the comparative period in H1 2015.
Margins have stabilised during the year following the completion
of the integration of the acquisitions from 2014, and they continue
to reflect the efficiency with which the Group is able to apply the
workforce to new and existing projects.
Billing services
Billing Services revenues and margins are up on the prior period
by 14% and 5pps respectively reflecting good wins and reduced
churn.
Telephony Services - Mobile
6 months 6 months 12 months to
to to 30 September
31 March 31 March 2015
2016 2015
(restated)
Revenue(#) (GBPm) 18.9 20.4 40.4
Gross profit(#) (GBPm) 7.8 9.4 19.0
Gross margin % 41% 46% 47%
Subscribers 103,515 95,260 99,413
Recurring revenue 92% 90% 93%
Mobile KPIs
Monthly ARPU (GBP) 30 35 34
Monthly ADPU (Mb) 280 143 170
Network churn 21% 14% 16%
Customer churn by value 15% 10% 14%
% Subscribers in-contract 80% 73% 78%
Monthly average contract
length 24m 24m 26m
(#) 2015 revenue and gross profit have been restated following a
reclassification of Mobile customer credits and other costs, as
discussed in note 1.
Mobile revenues declined by 7% half year on half year, with
gross profit declining at 18% and gross margins decreasing to 41%
(2015: 46%). As detailed above, this is due to the impact of new
carrier roaming tariffs that have compounded an ongoing reduction
in roaming usage. Significant trends in the period were as
follows:
-- The subscriber base has grown 4% organically to 103,515 since
30 September 2015, and 9% organically since 31 March 2015.
-- ARPU on the entire contracted base has declined from GBP35 to
GBP30 (period ending September 2015: GBP34). Whilst ARPU related to
data usage increased since the prior year (up GBP0.71 to GBP2.06),
this was mostly due to domestic effects, as overseas data ARPU
declined due to roaming tariffs, ongoing effects of regulation and
overseas use of wifi networks. Voice ARPUs continued to decline
(down GBP3.53 to GBP10.16), as the combined effects of ongoing
switches to data usage continue.
-- The growth in data continues, with ADPU up 96% to 280MB per
month year on year. With the predominance of smart phones and the
expansion of 4G networks we expect this will continue to grow
rapidly.
-- Mobile churn has risen across the base, as we actively churn
lower value customers to optimise profitability. Network churn
levels have increased slightly in the period resulting from churn
of smaller billing customers, as evidenced by the relatively low
churn by value of 15% (30 September 2015: 14%). Customer re-sign
levels, especially in higher billing customers, have remained high
and the number of subscribers in contract grew to 80% (30 September
2015: 78%) reflecting value seen in the Group's service offering
and the quality of the Synapse portal for customer retention.
Telephony Services - Fixed Voice
6 months 6 months 12 months
to to to
31 March 31 March 30 September
Fixed Voice 2016 2015 2015
GBPm GBPm GBPm
(restated)
Revenue (GBPm) 13.4 14.4 28.5
Gross profit(#) (GBPm) 5.9 6.3 12.3
Gross margin % 44% 44% 43%
Outbound monthly ARPU
(GBP) 1,373 1,368 1,385
Number of lines/channels
(inc. SIP) 67,070 71,985 68,388
SIP lines 13,453 10,196 10,924
Average customer contract
length (months) 32m 28m 30m
(#) 2015 gross profit has been restated following a
reclassification of other costs, as discussed in note 1.
Fixed Voice revenues declined 7% half year on half year due to a
combination of customer churn and reduction in call volume to
mobiles, regulatory price reductions and the continuing move to SIP
channels. These trends are in line with the wider market. Gross
profit has declined at a similar rate owing to ongoing churn versus
the signing of new commercial agreements and the rise in SIP
profitability. Significant trends in the period were as
follows:
-- The Group continues to proactively migrate the Fixed Voice
base to SIP based telephony. The migration to SIP lines has
increased the number of SIP Channels by 32% in the period to over
13,000, resulting in SIP gross profit rising by 75% from GBP0.45m
to GBP0.78m period on period.
-- The gross margin on this product set has remained level year
on year, and thus with the revenue decline, total gross profit has
reduced 6% year on year. The gross margin has been affected by a
combination of rising SIP profitability resulting from improved
commercials from greater scale, and an ongoing reduction in usage
across the traditional wholesale base.
-- Outbound revenues have decreased by 10% to GBP9.8m. Outbound
call revenues were down 7% from GBP5.4m to GBP5.0m, a significantly
lower rate than in prior periods, as mobile termination rate
reductions and ongoing migration to SIP continued to lower revenues
whilst new customer wins in the period have bolstered usage. The
average revenue per customer per month ('ARPU') has risen slightly
versus the prior year as a result of a general reduction in spend
resulting from the shift to mobile and data communications,
tempered by an increase arising from the signing of new, larger,
customers and churn of smaller customers.
-- Inbound revenues were flat at GBP3.6m year on year as usage
decreases offset ARPU increases from larger clients.
Earnings per share and taxation
Adjusted basic earnings per share was down 33% to 8.7 pence,
from 13.0 pence in the first half of 2015. The adjustments to
earnings relate to non-recurring costs associated with
restructuring in the period, amortisation of acquired intangibles
and share based payments which have been deducted in full from
profits for these earnings calculations.
Basic earnings per share was at 5.3p, down from 9.4p in 2015.
The weighted average shares in issue increased by 0.3m shares to
48.4m over the comparative period.
The estimated effective tax rate used for the period to 31 March
2016 is 18.3% as compared to 18.9% in the prior period. Despite the
recognition of multiple years of R&D credits in the prior year,
the current year rate is reduced by the lowering of UK corporation
tax in future years which reduces the value of the deferred tax
liability that will be realised in those future periods, plus a
further reduction in the UK rate of corporation tax (from 20.5% to
20.0%).
Cash flow and net debt
In May 2016, the Group secured a new GBP40.0m syndicated bank
loan facility with a further GBP30.0m accordion facility following
an "amend and extend" of the previous facility to May 2020. The new
facility consists solely of a revolving credit facility as the term
loan element of the previous facility has been removed, and also
incorporates fewer covenant tests. The average margin payable
throughout the first half of the 2016 financial year was 2.25%, and
the new facility margin is expected to be no higher than 1.35% for
the remainder of the financial year.
The Group's operating cash conversion was 96% (2015: 93%) of
adjusted EBITDA, resulting in a period end net debt balance of
GBP19.0m, (GBP18.7m at 30 September 2015), in line with the Board's
expectations, and includes non-recurring capital expenditure of
GBP0.3m on continued development of the Group's office space and IT
infrastructure, and payment of the FY15 final dividend of GBP5.3m.
The net debt has however reduced rapidly since the acquisitions in
2014 in a period where there has been significant investment in the
Group's infrastructure and funding a progressive dividend policy
reflecting the highly cash generative nature of the business.
Capital expenditure
Capital expenditure in the period was GBP1.5m, compared to
GBP4.1m in the six months to 31 March 2015, largely due to the
non-recurring office, IT functionality and customer related
investments in 2015. Of the total capital expenditure in the
current year, GBP0.4m was non-recurring investment in the Group's
office space and customers, and the remaining GBP1.1m was in line
with previous periods being further expenditure in respect of IT
development, including the Synapse Portal.
Going concern
After considering the Group's financial projections, available
borrowing facilities, covenants on borrowing facilities and other
relevant financial matters, the Board is satisfied that on the date
of approving the financial statements, there is a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. For this reason
the Directors continue to adopt the going concern basis in
preparing the financial statements.
Dividend
The Group's strong cash generation has enabled the Board to
maintain its progressive dividend policy. The Board has declared an
interim dividend of 6.2 pence per share on 8 July 2016 which is a
13% increase on the interim dividend of 5.5 pence per share paid in
2015. The Board expects to pay a total dividend for the year at
least 10% ahead of the prior year. The interim dividend will be
paid on 8 July 2016 to shareholders on the register at 17 June
2016.
Mark Quartermaine
Gavin Griggs
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 March 2016
Six months Six months Year ended
to to
31 March 31 March 2015 30 September
2016 2015
Note GBP'000 GBP'000 GBP'000
(Restated)
Revenue 69,300 71,984 146,816
Cost of sales (41,639) (41,616) (86,113)
------------------------------- -----
Gross profit 27,661 30,368 60,703
Operating costs (23,978) (24,067) (45,603)
------------------------------- ----- ----------- -------------- -------------
Operating profit 3,683 6,301 15,100
Operating profit - analysed:
Adjusted operating profit 5 5,889 9,037 19,194
Share based payments (139) (663) (1,309)
Amortisation of intangible
assets (excluding computer
software) 7 (1,849) (2,026) (3,698)
Income from property exit - 1,170 3,299
Restructuring and associated
costs 11 (218) (1,217) (2,386)
----------- -------------- -------------
Operating profit 3,683 6,301 15,100
------------------------------- ----- ----------- -------------- -------------
Finance income - 3 3
Finance costs (538) (703) (1,297)
------------------------------- -----
Profit before taxation 3,145 5,601 13,806
Taxation 6 (575) (1,059) (2,339)
------------------------------- -----
Profit and comprehensive
income for the year 2,570 4,542 11,467
------------------------------- ----- ----------- -------------- -------------
Attributable to:
Owners of the company 2,570 4,542 11,467
2,570 4,542 11,467
------------------------------- ----- ----------- -------------- -------------
Earnings per ordinary share:
Basic 4 5.3p 9.4p 23.8p
Diluted 4 5.2p 9.3p 23.3p
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 31 March 30 September
2016 2015 2015
Note GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Intangible assets 7 71,557 74,715 73,166
Property, plant and equipment 4,582 5,164 4,917
Deferred tax asset 555 1,230 559
Property deposits 153 281 280
76,847 81,390 78,922
------------------------------- ----- --------- --------- -------------
Current assets
Asset held for resale - 1,401 -
Inventories 1,019 266 1,293
Trade and other receivables 27,558 28,567 28,288
Cash and cash equivalents 9 3,205 4,568 2,362
31,782 34,802 31,943
------------------------------- ----- --------- --------- -------------
Total assets 108,629 116,192 110,865
------------------------------- ----- --------- --------- -------------
EQUITY AND LIABILITIES
Equity
Called up share capital 62 62 62
Share premium 6,600 6,593 6,600
Capital redemption reserve 8 8 8
Merger reserve 2,749 2,749 2,749
Retained earnings 30,681 28,452 33,249
------------------------------- -----
Total equity 40,100 37,864 42,668
------------------------------- ----- --------- --------- -------------
Current liabilities
Borrowings 9 7,704 6,640 6,598
Current tax liabilities 3,171 1,591 2,211
Trade and other payables 39,926 38,307 41,201
50,801 46,538 50,010
------------------------------- ----- --------- --------- -------------
Non-current liabilities
Borrowings 9 14,500 28,010 14,500
Deferred tax liabilities 3,228 3,780 3,687
17,728 31,790 18,187
------------------------------- ----- --------- --------- -------------
Total liabilities 68,529 78,328 68,197
------------------------------- ----- --------- --------- -------------
Total equity and liabilities 108,629 116,192 110,865
------------------------------- ----- --------- --------- -------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Capital Merger Profit and loss Total Equity
redemption reserve
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at
1 October 2014 62 6,563 8 2,749 27,728 37,110
Shares issued - 30 - - - 30
Reissue of
shares held
in trust - - - - 277 277
IFRS 2 share
based
payments - - - - 494 494
Deferred tax
on share
options - - - - 55 55
Comprehensive
income for
the period - - - - 4,542 4,542
Dividends paid
(note 3) - - - - (4,644) (4,644)
--------------- -------------- ---------------- -------------- -------------- ------------------- -------------------
Balance at
31 March 2015 62 6,593 8 2,749 28,452 37,864
Shares issued - 7 - - - 7
IFRS 2 share
based
payments - - - - 584 584
Deferred tax
on share
options - - - - (51) (51)
Comprehensive
income for
the period - - - - 6,925 6,925
Dividends paid
(note 3) - - - - (2,661) (2,661)
--------------- -------------- ---------------- -------------- -------------- ------------------- -------------------
Balance at
30 September
2015 62 6,600 8 2,749 33,249 42,668
Shares issued - - - - - -
IFRS 2 share
based
payments - - - - 206 206
Deferred tax
on share
options - - - - (60) (60)
Comprehensive
income for
the period - - - - 2,570 2,570
Dividends paid
(note 3) - - - - (5,284) (5,284)
Balance at
31 March 2016 62 6,600 8 2,749 30,681 40,100
=============== ============== ================ ============== ============== =================== ===================
CONSOLIDATED statement OF Cash flowS
Six months Six months Year ended
to to
Notes 31 March 31 March 30 September
2016 2015 2015
GBP'000 GBP'000 GBP'000
------------------- ------ -------------------------- -------------------------- -------------------------------
Cash flows from
operating
activities
Cash generated
from operations 8 7,202 9,545 21,879
Income tax paid (130) (923) (1,247)
Net cash from
operating
activities 7,072 8,622 20,632
------------------- ------ -------------------------- -------------------------- -------------------------------
Cash flows from
investing
activities;-
Purchases of
property, plant
and equipment (577) (3,602) (4,020)
Purchase of
intangible assets
(software) (936) (468) (1,295)
Proceeds from sale
of property,
plant and
equipment - - 3,800
Interest received - 3 3
Net cash used in
investing
activities (1,513) (4,067) (1,512)
------------------- ------ -------------------------- -------------------------- -------------------------------
Cash flows from
financing
activities;-
Interest paid (538) (703) (1,298)
Dividends paid 3 (5,284) (4,644) (7,305)
Proceeds from
issue of share
capital - - 37
Borrowings
received/(repaid) 1,106 1,567 (11,985)
Net cash used in
financing
activities (4,716) (3,780) (20,551)
------------------- ------ -------------------------- -------------------------- -------------------------------
Increase / (decrease) in
cash and
cash equivalents 843 775 (1,431)
Cash and cash
equivalents at
start of period 2,362 3,793 3,793
------------------- ------
Cash and cash
equivalents at
end of period 3,205 4,568 2,362
------------------- ------ -------------------------- -------------------------- -------------------------------
NOTES TO THE FINANCIAL INFORMATION
1. Basis of preparation
The financial information contained in this interim statement
does not constitute financial statements as defined by section 434
of the Companies Act 2006. The interim statement has been reviewed
by PricewaterhouseCoopers LLP but has not been audited. The
financial information for the year ended 30 September 2015 is
derived from the statutory accounts for that period that have been
delivered to the Registrar of Companies and included an audit
report, which was unqualified and did not contain any statement
under section 498 of the Companies Act 2006.
Alternative Networks plc's consolidated financial statements and
this interim financial information have been prepared in accordance
with IFRS as adopted by the European Union (EU). The accounting
policies applied are consistent with those described in the Annual
Report and Financial Statements 2015 except as described below. The
Interim statement has been prepared in accordance with IAS 34
'Interim Financial Reporting' and should be read in conjunction
with the 2015 Annual Report and Financial Statements.
The Group offers discounts to Mobile customers which have
previously been treated as adjustments to cost of sales due to the
nature of the incentive written into contractual agreements. In
light of changes in the contractual agreements, as presented in our
financial statements for the year ended 30 September 2015, these
amounts are now treated as adjustments to revenue. In the current
period this change has resulted in a reduction in revenue and a
corresponding reduction in cost of sales of GBP2.4m. Separately, as
presented in our financial statements for the year ended 30
September 2015, in order to bring the basis of reported margins in
the Telephony Services segment in line with the Advanced Solutions
segment, certain costs have been reclassified from operating costs
to cost of sales, resulting in an increase in cost of sales in the
current period of GBP0.7m. In order to aid the comparability of
amounts included in these financial statements, adjustments to
revenue and cost of sales of GBP2.0m and GBP0.7m have been applied
to the comparative period for discounts to customers and cost
reclassification respectively. Accordingly, operating costs have
been reduced by GBP0.7m. There are no earnings per share or equity
impacts arising from these adjustments in any period presented in
this interim statement.
New and amended standards adopted by the Group
There are no IFRSs or IFRIC interpretations that are effective
for the first time in this financial period that had a material
impact on the Group.
New standards and interpretations not yet adopted and not
relevant to the Group's operations
A number of new standards and amendments to standards and
interpretations are effective for the annual periods beginning on
or after 1 January 2016, and have not been applied in preparing
this interim statement. None of these will materially impact the
financial reporting of the Group. These are:
Amendment to IFRS 11, 'Joint arrangements' on acquisition of an
interest in a joint operation
Amendment to IAS 16, 'Property, plant and equipment' and IAS
38,'Intangible assets', on depreciation and amortisation
Amendments to IAS 16, 'Property, plant and equipment' and IAS
41, 'Agriculture', regarding bearer plants
Amendments to IAS 27, 'Separate financial statements' on the
equity method
Amendment to IFRS 5, 'Non-current assets held for sale and
discontinued operations' regarding methods of disposal
Amendment to IFRS 7, 'Financial instruments: Disclosures', (with
consequential amendments to IFRS 1) regarding servicing
contracts
Amendment to IAS 19, 'Employee benefits' regarding discount
rates
Amendment to IAS 34, 'Interim financial reporting' regarding
disclosure of information
Amendment to IAS 1, 'Presentation of financial statements' on
the disclosure initiative
Amendment to IFRS 10 and IAS 28 on investment entities applying
the consolidation exception
In preparing the interim financial statements the Directors have
considered the Group's financial projections, borrowing facilities
and other relevant financial matters, and the Board is satisfied
that there is a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable
future. For this reason the Directors continue to adopt the going
concern basis in preparing the financial statements.
This interim statement was approved by the Board on 7 June
2016.
2. Accounting policies
The accounting policies applied for the period are consistent
with those of the annual financial statements for the year ended 30
September 2015. Taxes on income in the interim periods are accrued
using the tax rate that would be applicable to expected total
annual earnings.
3. Dividends
The reported dividend in these financial statements represents
the 2015 proposed final dividend of 10.9 pence per 0.125p ordinary
share, which was paid on 29 January 2016 (2015: represents the 2015
proposed and paid final dividend of 9.6 pence per 0.125p ordinary
share). The amount of dividend paid was GBP5,284,000 (2015:
GBP4,644,000).
The directors propose an interim dividend of 6.2 pence per
0.125p ordinary share (2015: 5.5 pence), with a total payment value
of approximately GBP3,000,000 (2015: GBP2,662,000). The proposed
2016 interim dividend was approved on 26 May 2016, and has not been
accrued in the financial statements. It will be paid on 8 July 2016
to shareholders on the register on 17 June 2016. The ex-dividend
date is 16 June 2016.
4. Earnings per share
The calculation of basic and fully diluted earnings per ordinary
share is based on the profit attributable to equity holders of the
Company divided by the weighted average number of ordinary shares
in issue during the year.
For diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
potential dilutive ordinary shares. The Group has one category of
potential dilutive shares, being those share options granted to
employees where the exercise price is less than the average price
of the Company's ordinary share during the year.
The profit and weighted average number of shares used in the
calculations are set out below:
Basic and fully diluted earnings Profit attributable Weighted average Per share
per share to owners of of GBP0.00125 amount
the company ordinary shares
GBP'000 Number Pence
--------------------------------- ------------------------- ---------------- ---------
For the 6 months to March 2016
Earnings per share - basic 2,570 48,436,172 5.3
Potentially dilutive shares - 574,104 (0.1)
Earnings per share - diluted 2,570 49,010,276 5.2
--------------------------------- ------------------------- ---------------- ---------
For the 6 months to March 2015
Earnings per share - basic 4,542 48,071,601 9.4
Potentially dilutive shares - 860,202 (0.1)
Earnings per share - diluted 4,542 48,931,803 9.3
--------------------------------- ------------------------- ---------------- ---------
For the year to September 2015
Earnings per share - basic 11,467 48,212,619 23.8
Potentially dilutive shares - 940,364 (0.5)
Earnings per share - diluted 11,467 49,152,983 23.3
--------------------------------- ------------------------- ---------------- ---------
The adjusted EPS is based on the adjusted profit after tax as
set out in note 5, and the weighted average number of shares as
described above.
Basic and fully diluted adjusted Adjusted profit Weighted average Per share
earnings per share after taxation of GBP0.00125 amount
ordinary shares
GBP'000 Number Pence
--------------------------------- ------------------------- ---------------- ---------
For the 6 months to March 2016
Earnings per share - basic 4,224 48,436,172 8.7
Potentially dilutive shares - 574,104 (0.1)
Earnings per share - diluted 4,224 49,010,276 8.6
--------------------------------- ------------------------- ---------------- ---------
For the 6 months to March 2015
Earnings per share - basic 6,232 48,071,601 13.0
Potentially dilutive shares - 860,202 (0.3)
Earnings per share - diluted 6,232 48,931,803 12.7
--------------------------------- ------------------------- ---------------- ---------
For the year to September 2015
Earnings per share - basic 13,681 48,212,619 28.4
Potentially dilutive shares - 940,364 (0.6)
Earnings per share - diluted 13,681 49,152,983 27.8
--------------------------------- ------------------------- ---------------- ---------
The calculation of the weighted average number of shares in
issue excludes 1,298,784 shares held by the Alternative Networks
Employee Benefit Trust (EBT) (2015: 1,626,403).
There were 49,741,087 shares in issue at 31 March 2016 (2015:
49,714,010 shares). The weighted average number of shares during
the 6 months to 31 March 2016 was 48,436,172 (2015:
48,071,601).
5. Reconciliation to adjusted performance
Reconciliation of profit before tax to 31 March 31 March 30 September
adjusted EBITDA 2016 2015 2015
GBP'000 GBP'000 GBP'005
--------------------------------------------- --------------- --------------- ------------
Profit before tax 3,145 5,601 13,806
Adjustments
Amortisation of purchased customer contracts
and other intangibles (excluding computer
software) 1,849 2,026 3,698
Share based payments 139 663 1,309
Income from property exit - (1,170) (3,299)
Restructuring and other costs 218 1,217 2,386
---------------------------------------------
Adjusted profit before tax 5,351 8,337 17,900
Finance income - (3) (3)
Finance costs 538 703 1,297
--------------------------------------------- --------------- --------------- ------------
Adjusted operating profit 5,889 9,037 19,194
Add: Depreciation of property, plant
and equipment 898 763 1,681
Add: Amortisation of software (intangibles) 696 470 1,176
Adjusted EBITDA 7,483 10,270 22,051
--------------------------------------------- --------------- --------------- ------------
Reconciliation of adjusted profits for 31 March 31 March 30 September
earnings per share 2016 2015 2015
GBP'000 GBP'000 GBP'000
------------------------------------------------ ------------- ------------- -------------
Adjusted profit before tax (see above) 5,351 8,337 17,900
Less: Share based payments (139) (663) (1,309)
Less: Taxation per consolidated statement
of comprehensive income (575) (1,059) (2,339)
Less: Taxation on amortisation of purchased
customer contracts and other intangibles
(excluding computer software) and exceptional
charges (413) (383) (571)
Adjusted profit after tax 4,224 6,232 13,681
------------------------------------------------ ------------- ------------- -------------
Adjusted EPS is calculated on adjusted earnings after deduction
of share option costs. This analysis is provided as the Group
considers it provides a more appropriate reflection of the
underlying performance of the business.
6. Taxation on profit on ordinary activities
Income tax expense is recognised based on management's best
estimate of the weighted average annual effective income tax rate
expected for the full year. The estimated effective tax rate used
for the period to 31 March 2016 is 18.3% as compared to 18.9% in
the prior period. The current year rate reflects a further
reduction in the standard rate of corporation tax (from 20.5% to
20.0%) plus the lowering of UK corporation tax in future years
which reduces the value of the deferred tax liability that will be
realised in those future periods.
7. Intangible assets
Group Purchased Computer Customer Trade Technology Goodwill Total
customer software contracts names
contracts and relationships
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------- ---------- --------- ------------------ ------- ---------- -------- -------
Cost
At 1 October 2014 1,662 5,054 32,434 757 1,897 51,907 93,711
Additions - 1,295 - - - - 1,295
At 1 October 2015 1,662 6,349 32,434 757 1,897 51,907 95,006
Additions - 936 - - - - 936
At 31 March 2016 1,662 7,285 32,434 757 1,897 51,907 95,942
------------------------- ---------- --------- ------------------ ------- ---------- -------- -------
Accumulated amortisation
At 1 October 2014 1,662 2,998 10,375 757 1,174 - 16,966
Charge for year - 1,175 3,476 - 223 - 4,874
------------------------- ---------- --------- ------------------ ------- ---------- -------- -------
At 1 October 2015 1,662 4,173 13,851 757 1,397 - 21,840
Charge for period - 696 1,738 - 111 - 2,545
At 31 March 2016 1,662 4,869 15,589 757 1,508 - 24,385
------------------------- ---------- --------- ------------------ ------- ---------- -------- -------
Net book amount
At 31 March 2016 -2,417 16,845 -388 51,907 71,557
------------------ ----- ------ --- ------ ------
At 30 September
2015 -2,176 18,583 -500 51,907 73,166
------------------ ----- ------ --- ------ ------
At 1 October 2014 -2,056 22,059 -723 51,907 76,745
------------------ ----- ------ --- ------ ------
Amortisation has been charged through the income statement
within operating costs.
8. Cash generated from operations
Six months Six months Year ended
to to
31 March 2016 31 March 2015 30 September
2015
GBP'000 GBP'000 GBP'000
-------------------------------- ------------------------- ------------------------- ------------
Operating profit 3,683 6,301 15,100
Adjustments for
Depreciation of property, plant
and equipment 898 431 1,681
Amortisation of intangible
assets 2,545 2,495 4,874
Employee share scheme charges 139 663 1,309
Profit on sale of tangible
assets - - (2,399)
Movements in working capital
Inventories 274 61 (966)
Trade and other receivables 786 609 (1,594)
Trade and other payables (1,123) (1,347) (3,874
Cash generated from operations 7,202 9,545 21,879
================================= ========================= ========================= ============
9. Analysis of movement in net debt
As at As at
1 October Cash flow 31 March 2016
2015
GBP'000 GBP'000 GBP'000
Net Cash:
Cash at bank and in hand 2,362 843 3,205
-------------------------- ------------------- --------- -------------
Debt
Debt due within one year (6,598) (1,106) (7,704)
Debt due after one year (14,500) - (14,500)
--------- -------------
Total debt (21,098) (1,106) (22,204)
-------------------------- ------------------- --------- -------------
Net debt (18,736) (263) (18,999)
-------------------------- ------------------- --------- -------------
10. Segmental information
Per IFRS 8, operating segments require identification on the
basis of internal reporting about components of the Group that are
regularly reviewed by the chief operating decision maker to
allocate resources to the segments and to assess their
performance.
The chief operating decision maker has been identified as the
Board. The Board review the Group's internal reporting in order to
assess performance and allocate resources. The operating segments
are Telephony Services and Advanced Solutions which are reported in
a manner consistent with the internal reporting to the Board. The
Board assesses the performance of the operating segments based on
revenue and gross profit.
Telephony Services consists of two revenue streams, fixed voice
and mobile. Advanced Solutions includes the installation and
maintenance of telephone systems, the integration of computer
networks, the provision of managed hosting solutions and the
provision of billing facilities.
For six months ended 31 March Telephony Advanced
2016 Services Solutions Total
GBP'000 GBP'000 GBP'000
----------- ----------- ---------
Total segment revenue 32,262 37,122 69,384
Inter segment revenue - (84) (84)
Revenue from external customers 32,262 37,038 69,300
--------------------------------- ----------- ----------- ---------
Gross Profit 13,641 14,020 27,661
--------------------------------- ----------- ----------- ---------
Operating costs (23,978)
Finance income -
Finance costs (538)
Profit before taxation 3,145
----------- ----------- ---------
Adjusted EBITDA 7,483
--------------------------------- ----------- ----------- ---------
For six months ended 31 March Telephony Advanced Total
2015 (restated) Services Solutions
GBP'000 GBP'000 GBP'000
---------- ---------- --------
Total segment revenue 34,796 37,317 72,113
Inter segment revenue - (129) (129)
Revenue from external customers 34,796 37,188 71,984
-------------------------------- ---------- ---------- --------
Gross Profit 15,781 14,587 30,368
-------------------------------- ---------- ---------- --------
Operating costs (24,067)
Finance income 3
Finance costs (703)
Profit before taxation 5,601
---------- ---------- --------
Adjusted EBITDA 10,270
-------------------------------- ---------- ---------- --------
For the year ended 30 September Telephony Advanced Total
2015 Services Solutions
GBP'000 GBP'000 GBP'000
---------- ---------- --------
Total segment revenue 68,941 78,189 147,130
Inter segment revenue - (314) (314)
Revenue from external customers 68,941 77,875 146,816
-------------------------------- ---------- ---------- --------
Gross Profit 31,368 29,335 60,703
-------------------------------- ---------- ---------- --------
Operating costs (45,603)
Finance income 3
Finance costs (1,297)
Profit before taxation 13,806
---------- ---------- --------
Adjusted EBITDA 22,051
-------------------------------- ---------- ---------- --------
Assets and liabilities are not disclosed by segment as they are
not reported to the chief operating decision maker.
Transactions with the largest customer of the Company are less
than 10% of Group revenue and do not require disclosure for either
2016 or 2015.
All sales have taken place within the United Kingdom and those
between segments are all carried out on an arm's length basis.
All non-current assets are located within the United
Kingdom.
11. Restructuring and associated costs
Six months Six months Year ended
to to
31 March 2016 31 March 2015 30 September
2015
GBP'000 GBP'000 GBP'000
-------------------- ------------------------ ------------------------- ------------
Restructuring costs 51 1,058 1,823
Redundancy costs 167 159 563
218 1,217 2,386
==================== ======================== ========================= ============
12. Post balance sheet events
Subsequent to the year end the Group has entered into a new loan
finance agreement that amends and extends the previous loan finance
agreement until May 2020. The new agreement is a rolling credit
facility with a fixed GBP40m limit plus a further GBP30m accordion
option.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DDLFBQQFBBBZ
(END) Dow Jones Newswires
June 08, 2016 02:00 ET (06:00 GMT)
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