TIDMAMR

RNS Number : 4224L

Armour Group PLC

28 April 2015

Armour Group plc

(AIM: AMR)

Unaudited Interim Statement

For the six months to 28 February 2015

The Company remains an investing company and continues to look at a number of opportunities. The Company did not trade in the six month period.

For further information please contact:

Armour Group plc Tel: 01634 673172

Mark Wilson, Finance Director

   FinnCap, Nominated Adviser and Broker                                            Tel: 0207 220 0500 

Geoff Nash (Corporate Finance)

Stephen Norcross (Broking)

Unaudited Interim Statement

For the six months to 28 February 2015

Corporate activity

The Company has been an investing company since August 2014 and accordingly has continued to reduce its operating costs. The Tunbridge Wells head office was closed in December 2014.

As previously announced, in December 2014, I was required under Rule 9 of the City Code to make a general offer for those shares in Armour that I (and persons deemed to be acting in concert with me) did not already own. This offer period ended on 20 February 2015. Hawk Investment Holdings Limited now owns 47.9% of the issued share capital of the Company, whilst the concert party together owns 64.6%.

The Company was granted a court order on 18 February 2015 to perform a capital reduction, by cancellation of the share premium account and the deferred shares of 9 pence each. The effect of this capital reduction is set out in Consolidated Statement of Changes in Shareholder Equity.

Outlook

The Company continues to seek opportunities that will enhance shareholder capital growth and income. The Company's objective is to generate an attractive rate of return for shareholders by taking advantage of these opportunities.

Bob Morton

Chairman

28 April 2015

CONSOLIDATEDSTATEMENT OF COMPREHENSIVE INCOME

For the six months to 28 February 2015

 
                                                     Six months     Six months    Twelve months 
                                                             to             to               to 
                                                    28 February    28 February        31 August 
                                                           2015           2014             2014 
                                           Notes    (unaudited)    (unaudited) 
                                                         GBP000         GBP000           GBP000 
---------------------------------------  -------  -------------  -------------  --------------- 
 
 
 Revenue                                    2                 -         16,563                - 
---------------------------------------  -------  -------------  -------------  --------------- 
 (Loss)/profit from operations 
  before exceptional operations             2             (242)             79            (725) 
 Exceptional Items                          4                 -              -            (214) 
---------------------------------------  -------  -------------  -------------  --------------- 
 Total (loss)/profit from operations                      (242)             79            (939) 
 Finance income                                              67              -               20 
 Finance expense                                              -          (281)            (150) 
 Share of post-tax losses of equity 
  accounted associate                                      (32)              -             (70) 
 Loss before taxation                                     (207)          (202)          (1,139) 
 Taxation credit                            3                 -             44               11 
---------------------------------------  -------  -------------  -------------  --------------- 
 Loss for the financial period                            (207)          (158)          (1,128) 
---------------------------------------  -------  -------------  -------------  --------------- 
 Loss from discontinued operations, 
  net of tax                                5                 -              -         (10,071) 
---------------------------------------  -------  -------------  -------------  --------------- 
 Total loss for the financial 
  period                                                  (207)          (158)         (11,199) 
 Other comprehensive income 
 Exchange (loss)/gain arising 
  on translation of foreign operations                        -           (38)            (144) 
---------------------------------------  -------  -------------  -------------  --------------- 
 Total comprehensive loss                                 (207)          (196)         (11,343) 
---------------------------------------  -------  -------------  -------------  --------------- 
 
 
 Loss per ordinary share                    6 
 Basic                                                   (0.22)        (0.17)p         (11.96)p 
 Diluted                                                 (0.22)        (0.17)p         (11.96)p 
 
 

CONSOLIDATEDSTATEMENT OF FINANCIAL POSITION

At 28 February 2015

 
                                          28 February    28 February   31 August 
                                                 2015           2014        2014 
                                          (unaudited)    (unaudited) 
                                               GBP000         GBP000      GBP000 
--------------------------------  ----  -------------  -------------  ---------- 
 
 Non-current assets 
 Goodwill                                           -         12,084           - 
 Other intangible assets                            -          2,778           - 
 Property, plant and equipment                      -            698           1 
 Investment in associate                          827              -         859 
 Loan                                           1,000              -       1,000 
 Deferred taxation asset                            6            675           6 
 Total non-current assets                       1,833         16,235       1,866 
--------------------------------------  -------------  -------------  ---------- 
 
 Current assets 
 Inventories                                        -          7,481           - 
 Trade and other receivables                       11          6,063          60 
 Corporation tax asset                              -             93           - 
 Cash and cash equivalents                      3,711            326       4,070 
--------------------------------------  -------------  -------------  ---------- 
 Total current assets                           3,722         13,963       4,130 
--------------------------------------  -------------  -------------  ---------- 
 Total assets                                   5,555         30,198       5,996 
--------------------------------------  -------------  -------------  ---------- 
 
 Current liabilities 
 Loans and borrowings                               -        (8,084)           - 
 Trade and other payables                       (181)        (5,202)       (415) 
 Corporation taxation liability                     -           (12)           - 
 Provisions                                         -           (48)           - 
--------------------------------  ----  -------------  -------------  ---------- 
 Total current liabilities                      (181)       (13,346)       (415) 
--------------------------------------  -------------  -------------  ---------- 
 
 Non-current liabilities 
 Provisions                                         -           (53)           - 
 Deferred taxation liability                        -           (71)           - 
 Total non-current liabilities                      -          (124)           - 
--------------------------------  ----  -------------  -------------  ---------- 
 Total liabilities                              (181)       (13,470)       (415) 
--------------------------------------  -------------  -------------  ---------- 
 Total net assets                               5,374         16,728       5,581 
--------------------------------------  -------------  -------------  ---------- 
 
 
 
 Equity 
 Share capital                                    971          7,134       7,134 
 Share premium                                      -         10,084      10,084 
 Other reserves                                     -            871           - 
 Retained earnings                              4,975          (895)    (11,065) 
 Translation reserve                                -            106           - 
 Share trust reserve                            (572)          (572)       (572) 
--------------------------------------  -------------  -------------  ---------- 
 Total equity                                   5,374         16,728       5,581 
--------------------------------------  -------------  -------------  ---------- 
 

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the six months to 28 February 2015 (unaudited)

 
                                       Share      Share    Retained      Share     Total 
                                     capital    premium    earnings      trust    equity 
                                                                       reserve 
                                      GBP000     GBP000      GBP000     GBP000    GBP000 
---------------------------------  ---------  ---------  ----------  ---------  -------- 
 At 1 September 2014                   7,134     10,084    (11,065)      (572)     5,581 
 Total comprehensive loss                  -          -       (207)          -     (207) 
 Capital restructuring                     -   (10,084)      10,084          -         - 
 Cancellation of deferred shares     (6,163)          -       6,163          -         - 
 At 28 February 2015                     971          -       4,975      (572)     5,374 
---------------------------------  ---------  ---------  ----------  ---------  -------- 
 

For the six months to 28 February 2014 (unaudited)

 
                           Share      Share       Other    Retained   Translation      Share     Total 
                         capital    premium    reserves    earnings       reserve      trust    equity 
                                                                                     reserve 
                          GBP000     GBP000      GBP000      GBP000        GBP000     GBP000    GBP000 
---------------------  ---------  ---------  ----------  ----------  ------------  ---------  -------- 
 At 1 September 
  2013                     7,134     10,084         871       (737)           144      (572)    16,924 
 Total comprehensive 
  loss                         -          -           -       (158)          (38)          -     (196) 
 At 28 February 
  2014                     7,134     10,084         871       (895)           106      (572)    16,728 
---------------------  ---------  ---------  ----------  ----------  ------------  ---------  -------- 
 

For the twelve months ended 31 August 2014

 
                               Share      Share       Other    Retained   Translation      Share      Total 
                             capital    premium    reserves    earnings       reserve      trust     equity 
                                                                                         reserve 
                              GBP000     GBP000      GBP000      GBP000        GBP000     GBP000     GBP000 
-------------------------  ---------  ---------  ----------  ----------  ------------  ---------  --------- 
 At 1 September 
  2013                         7,134     10,084         871       (737)           144      (572)     16,924 
 Total comprehensive 
  loss                             -          -           -    (11,199)             -          -   (11,199) 
 Other comprehensive 
  expense                          -          -           -           -         (144)          -      (144) 
 Discontinued operations           -          -       (871)         871             -          -          - 
 At 31 August 2014             7,134     10,084           -    (11,065)             -      (572)      5,581 
-------------------------  ---------  ---------  ----------  ----------  ------------  ---------  --------- 
 

CONSOLIDATEDSTATEMENT OF CASH FLOWS

For the six months to 28 February 2015

 
                                                      Six months     Six months   Twelve months 
                                                              to             to              to 
                                                     28 February    28 February       31 August 
                                                            2015           2014            2014 
                                                     (Unaudited)    (Unaudited) 
                                            Notes         GBP000         GBP000          GBP000 
----------------------------------------  -------  -------------  -------------  -------------- 
 
 Cash flow from operating activities 
 Cash (utilised in)/generated from 
  operations                                 8             (426)            627              87 
 Income taxes recovered by discontinued 
  operations                                                   -            180             272 
----------------------------------------  -------  -------------  -------------  -------------- 
 Net cash (outflow)/inflow from 
  operating activities                                     (426)            807             359 
----------------------------------------  -------  -------------  -------------  -------------- 
 
 Investing activities 
 Purchase of property, plant and 
  equipment                                                    -          (123)           (206) 
 Sale of property, plant and equipment                         -              1               9 
 New loans issued                                              -              -         (1,000) 
 Proceeds on disposal of discontinued 
  operations                                                   -              -          11,226 
 Costs of disposal of discontinued 
  operations                                                   -              -           (822) 
 Expenditure on intangible assets                              -          (475)           (797) 
 Interest received                                            67              -              17 
----------------------------------------  -------  -------------  -------------  -------------- 
 Net cash generated from/(used in) 
  investing activities                                        67          (597)           8,427 
----------------------------------------  -------  -------------  -------------  -------------- 
 
 Financing activities 
 New loans taken out                                           -            297               - 
 Repayment of loans                                            -           (28)         (4,499) 
 Interest paid                                                 -          (246)           (348) 
----------------------------------------  -------  -------------  -------------  -------------- 
 Net cash arising from/(used in) 
  financing activities                                         -             23         (4.847) 
----------------------------------------  -------  -------------  -------------  -------------- 
 
 Net (decrease)/increase in cash, 
  cash equivalents 
  and bank overdrafts                        9             (359)            233           3,939 
 Currency variations                                           -           (38)               - 
 Cash, cash equivalents and bank 
  overdrafts 
  at the start of the period                               4,070            131             131 
 Cash, cash equivalents and bank 
  overdrafts at the end of the period                      3,711            326           4,070 
----------------------------------------  -------  -------------  -------------  -------------- 
 

Notes to the Interim Financial Statements

   1.   Basis of Preparation 

These interim financial statements have been prepared using the recognition and measurement principles of International Accounting Standards, International Financial Reporting Standards and Interpretations adopted for use in the European Union (collectively "Adopted IFRS").

The principal accounting policies used in preparing these interim financial statements are those expected to apply to the Group's Consolidated Financial Statements for the year ending 31 August 2015 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 August 2014. The financial information for the six months ended 28 February 2015 and 28 February 2014 is unaudited and does not constitute statutory financial statements for those periods.

The comparative financial information for the twelve months ended 31 August 2014 has been derived from the audited statutory financial statements for that year. These financial statements were approved by shareholders at the Annual General Meeting and have been delivered to the Registrar of Companies. The Auditors' Report on those financial statements was unqualified, did not include a reference to any matters to which the Auditors drew attention by way of emphasis without qualifying their report and did not include a statement under section 498(2) or 498(3) of the Companies Act 2006.

The Board of Directors approved this interim report on 27 April 2015.

   2.   Business Segments 

During the prior year the group operated in the following main business segments:

Armour Automotive: The design, manufacture and supply of products for the in-vehicle communications and entertainment market, this segment was disposed of on 31 March 2015;

Armour Home: The design, manufacture and supply of products into the Hi-Fi, home theatre, home entertainment and office furniture markets, this segment was disposed of on 4 August 2014;

Armour Asia: The sale of Armour Automotive and Armour Home products into Asian markets and provision of supplier support services, including quality control, to the UK businesses, this segment was disposed of on 4 August 2014;

Central operations: The provision of Group-wide support services including finance and future product concepts to the other business segments within the Group.

 
                                               Central 
   For the six months to 28 February        operations      Total 
   2015 (Unaudited)                             GBP000     GBP000 
-------------------------------------     ------------  --------- 
 Underlying (loss) for the period                (242)      (242) 
----------------------------------------  ------------  --------- 
 
 Depreciation                                        1          1 
----------------------------------------  ------------  --------- 
 
 
                                             Armour     Armour    Armour       Central 
   For the six months to 28 February     Automotive       Home      Asia    operations      Total 
   2014 (Unaudited)                          GBP000     GBP000    GBP000        GBP000     GBP000 
-------------------------------------  ------------  ---------  --------  ------------  --------- 
 Revenue                                      7,515      8,487       561             -     16,563 
 Underlying profit/(loss) for 
  the period                                    711         15     (129)         (518)         79 
-------------------------------------  ------------  ---------  --------  ------------  --------- 
 
 Additions to non-current assets                218        377         3             -        598 
 Depreciation                                    27        101         4             1        133 
 Amortisation of intangible assets               71        228         -             -        299 
-------------------------------------  ------------  ---------  --------  ------------  --------- 
 
                                             Armour     Armour    Armour       Central 
   For the twelve months to 31           Automotive       Home      Asia    operations      Total 
   August 2014                               GBP000     GBP000    GBP000        GBP000     GBP000 
-------------------------------------  ------------  ---------  --------  ------------  --------- 
 Continuing operations 
 Revenue                                          -          -         -             -          - 
 Loss from operations                             -          -         -         (939)      (939) 
-------------------------------------  ------------  ---------  --------  ------------  --------- 
 
 Discontinued operations 
 Revenue                                      8,915     14,987     1,154             -     25,056 
 Profit/(loss) from discontinued 
  operations net of tax                       3,524   (13,550)      (45)             -   (10,071) 
-------------------------------------  ------------  ---------  --------  ------------  --------- 
 
 
                                              Six months     Six months   Twelve months 
                                                      to             to              to 
                                             28 February    28 February       31 August 
                                                    2015           2014            2014 
                                             (Unaudited)    (Unaudited) 
                                                  GBP000         GBP000          GBP000 
----------------------------------  ----  --------------  -------------  -------------- 
 Revenue by location of customers 
 United Kingdom                                        -         10,327          15,668 
 Sweden                                                -          1,153           1,491 
 France                                                -            868           1,111 
 Italy                                                 -            637             763 
 Germany                                               -            305             453 
 Denmark                                               -            182             233 
 Hong Kong                                             -             29              53 
 Other countries                                       -          3,062           5,284 
----------------------------------------   -------------  -------------  -------------- 
 Total                                                 -         16,563          25,056 
----------------------------------------   -------------  -------------  -------------- 
 
   3.   Taxation 

No taxation charge/credit has been recognised for the six months to 28 February 2015, this will be assessed at the year end, and will be based on the effective taxation rate, which is estimated will apply for the year ending 31 August 2015.

   4.   Exceptional Items 

Exceptional items in the prior year relate to the redundancy costs at Head Office following the sale of the Armour Automotive division. The exceptional costs incurred are shown below:

 
                                     Six months      Six months   Twelve months 
                                             to              to              to 
                                    28 February     28 February       31 August 
                                           2015            2014            2014 
                                    (Unaudited)     (Unaudited) 
                                         GBP000          GBP000          GBP000 
-------------------------  ----  --------------  --------------  -------------- 
 Redundancy costs                              -              -             214 
-------------------------------   --------------  -------------  -------------- 
 Total exceptional costs                       -              -             214 
-------------------------------   --------------  -------------  -------------- 
 
   5.   Discontinued Operations 

During the prior year the Group disposed of both of its trading divisions: Armour Automotive was sold on 31 March 2014 and Armour Home on 4 August 2014. The post-tax loss of discontinued operations was determined as follows:

 
                                            Six months      Six months   Twelve months 
                                                    to              to              to 
                                           28 February     28 February       31 August 
                                                  2015            2014            2014 
                                           (Unaudited)     (Unaudited) 
                                                GBP000          GBP000          GBP000 
--------------------------------  ----  --------------  --------------  -------------- 
 Revenue                                              -              -          25,056 
 Expenses other than finance 
  costs                                               -              -        (24,699) 
 Finance costs                                        -              -           (232) 
 Tax expense                                          -              -           (108) 
 Net asset value of associate                         -              -             929 
 Loss from selling discontinued 
  operations after tax                                -              -        (11,017) 
               -                                                     -        (10,071) 
  --------------  ----------------------------------------------------  -------------- 
 
   6.   Loss per Ordinary Share 

The basic loss per ordinary share is calculated using the weighted average number of ordinary shares in issue during the financial period of 93,627,496 (28 February 2014 and 31 August 2014: 93,627,496).

The diluted loss per ordinary share is calculated using the weighted average number of ordinary shares in issue during the financial period of 93,627,496 (28 February 2014 and 31 August 2014: 93,627,496). The effect of the exercise of options on the weighted average number of ordinary shares in issue is nil for all periods.

The weighted average number of ordinary shares held by the Armour Employees' Share Trust of 3,424,000 (28 February 2014 and 31 August 2014: 3,424,000) are not included in either the weighted average, or diluted weighted average, ordinary shares in issue during the financial period.

 
                                    Six months        Six months        Twelve months 
                                         to                to                 to 
                                    28 February       28 February          31 August 
                                        2015              2014                2014 
                                    (Unaudited)       (Unaudited) 
                                  GBP000        p   GBP000        p     GBP000         p 
-------------------------------  -------  -------  -------  -------  ---------  -------- 
 Basic loss per ordinary share 
 Loss for the financial period     (207)   (0.22)    (158)   (0.17)   (11,199)   (11.96) 
 Discontinued operations net 
  of tax                               -        -        -        -     10,071     10.76 
-------------------------------  -------  -------  -------  -------  ---------  -------- 
 Continuing operations             (207)   (0.22)    (158)   (0.17)    (1,128)    (1.20) 
 Exceptional Items                     -        -        -        -        214      0.23 
-------------------------------  -------  -------  -------  -------  ---------  -------- 
 Underlying loss                   (207)   (0.22)    (158)   (0.17)      (914)    (0.97) 
-------------------------------  -------  -------  -------  -------  ---------  -------- 
 
 
                                    Six months        Six months        Twelve months 
                                         to                to                 to 
                                    28 February       28 February          31 August 
                                        2015              2014                2014 
                                    (Unaudited)       (Unaudited) 
                                  GBP000        p   GBP000        p     GBP000         p 
-------------------------------  -------  -------  -------  -------  ---------  -------- 
 Diluted loss per ordinary 
  share 
 Loss for the financial period     (207)   (0.22)    (158)   (0.17)   (11,199)   (11.96) 
 Discontinued operations net 
  of tax                               -        -        -        -     10,071     10.76 
-------------------------------  -------  -------  -------  -------  ---------  -------- 
 Continuing operations             (207)   (0.22)    (158)   (0.17)    (1,128)    (1.20) 
 Exceptional Items                     -        -        -        -        214      0.23 
-------------------------------  -------  -------  -------  -------  ---------  -------- 
 Underlying loss                   (207)   (0.22)    (158)   (0.17)      (914)    (0.97) 
-------------------------------  -------  -------  -------  -------  ---------  -------- 
 
   7.   Share Capital 

At the Company's Annual General Meeting held on 8 December 2014, resolutions were passed to allow the company to obtain court approval to cancel the deferred shares and the share premium account. Court approval was given on 18 February 2015.

Movements in issued share capital

 
                                       Ordinary       Deferred 
                                      shares of      shares of 
                                        1p each        9p each 
                                    (Unaudited)    (Unaudited) 
                                         Number         Number 
                                           '000           '000 
------------------------------    -------------  ------------- 
 In issue at 1 September 2014            97,051         68,480 
 Court approved cancellation 
  of deferred shares                          -       (68,480) 
 In issue at 28 February 2015            97,051              - 
--------------------------------  -------------  ------------- 
 
 
                                       Ordinary       Deferred 
                                      shares of      shares of 
                                        1p each        9p each 
                                    (Unaudited)    (Unaudited) 
                                         GBP000         GBP000 
------------------------------    -------------  ------------- 
 In issue at 1 September 2014               971          6,163 
 Court approved cancellation 
  of deferred shares                          -        (6,163) 
 In issue at 28 February 2015               971              - 
--------------------------------  -------------  ------------- 
 
   8.   Net Cash from Operations 
 
                                                  Six months     Six months   Twelve months 
                                                          to             to    to 31 August 
                                                 28 February    28 February            2014 
                                                        2015           2014 
                                                 (Unaudited)    (Unaudited)          GBP000 
                                                      GBP000         GBP000 
---------------------------------------------  -------------  -------------  -------------- 
 
 (Loss) for the period                                 (207)          (158)        (11,199) 
 Depreciation of property, plant 
  and equipment                                            1            133               1 
 Amortisation of intangible assets                         -            299               - 
 Depreciation, amortisation, finance 
  expense and tax relating to discontinued 
  operations                                               -              -           1,102 
 Loss on disposal of subsidiary undertakings               -              -          10,071 
 Share of post-tax losses of associate                    32              -              70 
 Finance income                                         (67)              -            (20) 
 Finance expense                                           -            281             150 
 Income tax credit                                         -           (44)            (11) 
---------------------------------------------  -------------  -------------  -------------- 
 EBITDA*                                               (241)            511             164 
---------------------------------------------  -------------  -------------  -------------- 
 Loss on sale of property, plant                                          -               - 
  and equipment 
 Decrease in inventories                                   -            476               - 
 Decrease/(increase) in trade and 
  other receivables                                       49            640            (25) 
 Decrease in trade, other payables 
  and provisions                                       (234)        (1,000)            (52) 
---------------------------------------------  -------------  -------------  -------------- 
                                                       (185)            116            (77) 
---------------------------------------------  -------------  -------------  -------------- 
 Cash (utilised in)/generated from 
  operations                                           (426)            627              87 
---------------------------------------------  -------------  -------------  -------------- 
 

*EBITDA is defined as (loss)/profit before interest, taxation, depreciation and amortisation.

   9.   Reconciliation of Net Cash Flow to Movement in Net Cash/(Debt) 

Net debt incorporates the Group's loans, borrowings and bank overdrafts less cash and cash equivalents. A reconciliation of the movement in the net debt is shown below:

 
                                              Six months     Six months   Twelve months 
                                                      to             to    to 31 August 
                                             28 February    28 February            2014 
                                                    2015           2014 
                                             (Unaudited)    (Unaudited)          GBP000 
                                                  GBP000         GBP000 
----------------------------------------  --------------  -------------  -------------- 
 
 Net (decrease)/increase in cash 
  and cash equivalents                             (359)            233           3,939 
 New loans                                             -          (297)               - 
 Repayment of loans                                    -             28           4,499 
 Other non-cash movements                              -           (73)           3,281 
----------------------------------------  --------------  -------------  -------------- 
 (Decrease)/increase in net cash/(debt) 
  in the financial period                          (359)          (109)          11,719 
 Opening net cash/(debt)                           4,070        (7,649)         (7,649) 
----------------------------------------  --------------  -------------  -------------- 
 Closing net cash/(debt)                           3,711        (7,758)           4,070 
----------------------------------------  --------------  -------------  -------------- 
 

10. Copies of Interim Report

A copy of this interim report can be viewed on the Group's website: www.armourgroup.uk.com and will be made available upon request at the Company's Registered Office, Suite 25, 6-8 Revenge Road, Lordswood, Chatham, Kent, ME5 8UD.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR SEIFEWFISEIL

Armour Group (LSE:AMR)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Armour Group Charts.
Armour Group (LSE:AMR)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Armour Group Charts.