A successful bid for Deutsche Bank provided the studio with a
turnaround performance in the year and much needed revenue
visibility.
Revenues grew by 83% to GBP909k (2013: GBP496k) and profits up
five fold to GBP292k (2013: GBP58k).
The office retains a high calibre client portfolio including:
The Bank of New York Mellon, JP Morgan, Microsoft, Morgan Stanley
and Tishman Speyer.
Prague
The market for services in the Czech Republic is depressed and
achieving a breakeven result has been a considerable achievement.
The Group's decision to move to a JV arrangement has been
vindicated by recent results. As the studio has considerable design
skills, the Group will remain committed to its continuation as part
of the Group until the economy recovers.
Group costs
Group costs rose to GBP398k (2013: GBP144k). The increase
comprises one off costs in respect of corporate finance and legal
work and the acquisition of SHCE. It also reflects the impacts of
salary reinstatements, the addition of a new non executive director
and an enhanced Head Office team to support the enlarged Group,
together with recruitment fees for those individuals.
Swanke Hayden Connell Europe Limited integration
During the past nine months significant progress has been made
to integrate SHCE into our business model. Both IT platforms and
software systems have been aligned and we have co located our joint
offices in London and Moscow. This has resulted in a significant
capital spend in IT infrastructure and property refurbishment, but
brings identified cost savings that should materialise downstream.
Additionally we have been able to commence joint working on new
projects in order to yield longer term synergies and maximise our
combined expertise on project delivery.
Little of this benefit (but all of the cost) has been seen in
these results. However, our end of year reviews have highlighted
little or no further capex requirements in 2014/15 for either IT or
property (other than volume expansion) and budgets reflect an
ongoing underlying cost saving profile in these areas.
We are pleased to report that the merger will bring the expected
longer term benefits not only in critical mass and brand quality,
but in greater efficiency from our underlying overhead.
Dividends
It is the Board's intention to bring the timing of any future
dividend into line with market practice, declaring final and
interim dividends at the time of our final and interim results,
respectively.
Summary
The 2014 results reflect a considerable improvement in our
underlying performance and the executive directors are confident
that this performance can be maintained as the markets in which we
operate also improve.
Nicholas Thompson Beverley Wright
Chief Executive Officer Group Finance Director
28 January 2015
Consolidated income statement
For the year ended 30 September 2014
2014 2013
GBP'000 GBP'000
---------------------------------- --------- ---------
Revenue 17,326 8,406
Sub consultant costs (2,594) (1,290)
----------------------------------- --------- ---------
Revenue less sub consultant
costs 14,732 7,116
Personnel related costs (9,868) (4,751)
Property related costs (2,343) (1,256)
Other operating expenses (1,861) (1,027)
Other operating income 404 217
----------------------------------- --------- ---------
Operating profit 1,064 299
Finance income - 1
Finance costs (18) (14)
----------------------------------- --------- ---------
Profit after finance costs 1,046 286
Share of results of associate
and joint ventures 354 264
----------------------------------- --------- ---------
Profit before tax 1,400 550
Tax charge (354) (176)
----------------------------------- --------- ---------
Profit from continuing
operations 1,046 374
Profit for the year attributable
to equity
holders of the Company 1,046 374
----------------------------------- --------- ---------
Basic and diluted earnings
per share
From continuing operations 0.65p 0.26p
Total earnings per share 0.65p 0.26p
----------------------------------- --------- ---------
Consolidated statement of comprehensive income
For the year ended 30 September 2014
2014 2013
GBP'000 GBP'000
---------------------------------- --------- ---------
Profit for the year 1,046 374
Other comprehensive income:
Currency translation differences (103) (2)
Currency translation differences
recycled on discontinued
operations - 1
----------------------------------- --------- ---------
Other comprehensive income
for the year (103) (1)
Total comprehensive income
for the year
attributable to equity
holders of the Company 943 373
----------------------------------- --------- ---------
Consolidated statement of financial position
At 30 September 2014
2014 2013
GBP'000 GBP'000
------------------------------- --------- ---------
Non current assets
Goodwill 1,835 1,369
Other intangible assets 594 -
Property, plant and equipment 648 326
Investment in associate 244 190
Investments in joint ventures 131 39
Deferred tax 290 454
-------------------------------- --------- ---------
Total non current assets 3,742 2,378
Current assets
Trade and other receivables 6,379 3,515
Current tax - 117
Cash and cash equivalents 1,891 1,343
-------------------------------- --------- ---------
Total current assets 8,270 4,975
Total assets 12,012 7,353
Current liabilities
Trade and other payables (6,540) (4,005)
Current tax (131) -
Short term borrowings (113) (150)
Provisions (104) (50)
-------------------------------- --------- ---------
Total current liabilities (6,888) (4,205)
Non current liabilities
Long term borrowings - (113)
Deferred tax (71) (6)
-------------------------------- --------- ---------
Total non current liabilities (71) (119)
Total liabilities (6,959) (4,324)
Net assets 5,053 3,029
-------------------------------- --------- ---------
Capital and reserves
Share capital 1,652 1,456
Merger reserve 1,176 -
Foreign currency translation
reserve (74) 29
Retained earnings 148 (898)
Other distributable reserve 2,151 2,442
-------------------------------- --------- ---------
Total equity attributable
to
equity holders of the
Company 5,053 3,029
-------------------------------- --------- ---------
Consolidated statement of cash flows
For the year ended 30 September 2014
2014 2013
GBP'000 GBP'000
---------------------------------- --------- ---------
Cash flows from operating
activities
Cash generated from operations 1,360 646
Interest paid (18) (14)
Income taxes received
/ (paid) 70 61
----------------------------------- --------- ---------
Net cash inflow from operating
activities 1,412 693
Cash flows from investing
activities
Purchase of property,
plant and equipment (523) (157)
Sale of property, plant
and equipment 4 4
Acquisition of subsidiary, (57) -
net of cash acquired
Interest received - 1
Dividends received 184 210
----------------------------------- --------- ---------
Net cash generated from
/ (used in) investing
activities (392) 58
Net cash inflow before
financing activities 1,020 751
Cash flows from financing
activities
Repayment of bank loans (150) (150)
Payment of asset finance - -
liabilities
Dividends paid (291) -
---------------------------------- --------- ---------
Net cash used in financing
activities (441) (150)
Net change in cash, cash
equivalents and
bank overdraft 579 601
Cash and cash equivalents
and bank
overdraft at start of
year 1,343 739
Currency translation differences (31) 3
Cash, cash equivalents
and bank
overdraft at end of year 1,891 1,343
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