TIDMIDEA
RNS Number : 8969U
Ideagen PLC
24 January 2017
24 January 2017
Ideagen PLC
("Ideagen" or the "Group")
Unaudited Interim Results for the six months ended 31 October
2016
Ideagen PLC (AIM: IDEA), a leading supplier of Information
Management software to highly regulated industries, announces its
unaudited interim results for the six months ended 31 October
2016.
Financial Highlights
-- Revenue increased by 22% to GBP12.02 million (2015: GBP9.87 million)
o Underlying organic revenue growth of 16%
o Recurring revenues represent 56% (2015: 53%) of overall
revenues and are equivalent to 90% (2015: 87%) of fixed operating
costs
-- Adjusted diluted EPS** increased by 28% to 1.25p (2015: 0.98p)
-- Adjusted EBITDA* increased by 29% to GBP3.11 million (2015: GBP2.41 million)
-- Adjusted PBT** increased by 23% to GBP2.63 million (2015: GBP2.13 million)
-- Cash generated by operations of GBP2.98 million (2015: GBP1.15 million)
-- Net cash of GBP4.82 million (30 April 2016: GBP6.32 million;
31 October 2015: GBP5.44 million)
-- 11% increase in interim dividend to 0.068p (2015: 0.061p)
*Before share based payments and exceptional items
**Before share based payments, amortisation of acquisition
intangibles and exceptional items
Operational Highlights
-- Acquisition of Covalent Software Ltd and Logen adding IP,
recurring revenues and over 200 customers to the Group
-- Acquisition of IPI Solutions Ltd post period end
-- Significant progress within cloud business
o 37 new SaaS customer wins
o 7 new Enlighten customer wins including Air Transat,
Telefonica and Johnson Matthey
-- 59 new on premise customer wins including KLM, Medway NHS Foundation Trust and Sabic Kemya
-- Strong customer retention - 98% maintenance and support contract renewal rate
-- Significant contract extensions from existing customers
including Babcock, BDO, Jaguar Land Rover, Imperial Tobacco, Great
Ormond Street Hospital and DHL
David Hornsby, CEO of Ideagen, commented: "We are delighted to
report on another strong performance from the Group across all of
our vertical markets during the first half of the year.
As well as recording significant organic growth and a further
increase in revenues, the Group has successfully acquired and
integrated two companies in the period which marks a return to our
strategy of acquiring businesses with strong IP and recurring
revenues. In addition, we have achieved strong momentum within our
SaaS based business which has helped increase recurring revenues
and supports the Group's medium term strategy to transition from a
predominantly perpetual to a predominantly SaaS based licence
model.
Current trading is robust and remains in line with both market
and management expectations. As such, long term prospects for the
Group remain positive and we are confident in the outlook for the
rest of the year."
Enquiries:
Ideagen plc 01629 699100
David Hornsby, Chief
Executive
Graeme Spenceley, Finance
Director
Joe O'Brien, Investor
Relations
finnCap Limited 020 7220 0500
Stuart Andrews/James
Thompson (Nomad)
Stephen Norcross (Corporate
Broking)
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
About Ideagen plc
Ideagen is a UK company quoted on the London Stock Exchange AIM
market (Ticker: IDEA.L). Ideagen is a supplier of Information
Management software with operations in the UK, the United States
and the Middle East. The Company specialises in GRC ( Governance,
Risk and Compliance) and Content and Clinical solutions with a
primary focus on organisations operating within highly regulated
industries. With an excellent portfolio of software products,
Ideagen is able to provide complete information lifecycle solutions
that enable organisations to reduce risk, meet their regulatory and
compliance standards, helping them to reduce costs and improve
efficiency.
The Group has a customer base of over 3,000 organisations using
the Ideagen suite of products, including many blue chip names such
as BAE Systems, Emirates, Shell and the European Central Bank as
well as 150 hospitals in the UK and US.
For further information please visit www.ideagen.com
CHIEF EXECUTIVE'S REVIEW
Business Review
I am pleased to report on another excellent performance for the
six months ended 31 October 2016 combining strong organic revenue
growth of 16% with the acquisitions of Covalent Software Ltd and
Logen. Since the end of the period, the group has also completed
the acquisition of IPI Solutions Ltd.
The Group's core expertise is in the development and
implementation of Governance, Risk and Compliance (GRC) software
tools that enable customers to identify, assess and prioritise risk
and to manage information in line with rigorous regulations. In
each of our chosen verticals, our customers are increasingly
required to take a holistic view of risk management, internal audit
and compliance, with many organisations at the beginning of the
adoption phase of high value enterprise-wide solutions.
Demand in all of the Group's key GRC verticals continues to be
robust, with new customer wins achieved across a range of
industries. Growth in the period was driven by several new customer
wins and the expansion of our footprint within the existing
customer base - which now stands at more than 3,000 organisations
globally. New wins in the period included Air Transat, Booz Allen
Hamilton, Telefonica/ISS, Johnson Matthey, KLM, Medway NHS
Foundation Trust and Sabic Kemya. Significant orders from the
existing customer base include Babcock, BDO, Jaguar Land Rover,
Imperial Tobacco, Great Ormond Street Hospital and DHL.
The Group continues to benefit from a strong and growing base of
recurring revenues, which now represent 56% of total revenue (2015:
53%), equivalent to 90% of the fixed overhead base (2015: 87%).
Most of this growth is in respect of recurring SaaS revenues which
represented 14% (Year to 30 April 2016: 9%) of total revenues.
The Group has continued to invest in product development and
further sales resources and we view this as key to the future long
term growth of the business.
Markets: GRC and Content & Clinical
The Group operates in two areas: supplying GRC solutions to
highly regulated industries including Healthcare, Manufacturing,
Life Sciences, Finance and Transport; and the supply of Content and
Clinical management solutions, predominately to the NHS. The Group
has established a broad customer base across both areas, including
7 of the top 10 UK accounting firms; 125 of the 165 English NHS
Acute Trusts; all 7 of the top 7 Global Aerospace & Defence
companies; and 14 of the 14 Scottish Regional Health Boards.
GRC solutions account for an increasing proportion of the
group's revenues. GRC revenues were 82% (2015: 77%) of total
revenues in the period and this area will continue to be the core
driver of growth for the overall business. GRC enjoyed strong
organic revenue growth of 18% in the period in line with the
enhanced focus on this area. The market remains highly fragmented -
there is no one dominant supplier but rather numerous vendors
providing niche product sets. Management believes that, with our
broad product portfolio and best of breed capabilities, the Group
has realised only a small proportion of the available opportunity
to date.
Revenue derived from our Content and Clinical solutions
currently represents 18% (2015: 23%) of total group revenues.
Although Content and Clinical revenues represent a reducing
proportion of total group revenues, this area has now stabilised
with an 8% growth in revenues in the period ending the pattern of
declining revenues experienced over the last two years. As
mentioned in previous reports, this area of the Group's operations
continues to be impacted by delays in decision making within acute
NHS trusts, typically around enterprise patient information
opportunities. This is due to budgetary constraints at acute trust
level as no additional technology fund has been made available for
the current financial year to support the Government Paperless NHS
strategy. However, outlook for the business remains encouraging
over the medium term as it is likely that the central technology
fund will be reintroduced in the coming months, following which
there will be a locally funded Sustainability and Transformation
Plan (STP) which will focus on digital initiatives at acute trust
level.
Acquisitions
Covalent Software, acquired in August 2016, brings a
complementary GRC cloud solution which further consolidates
Ideagen's position in the NHS, local government and financial
services verticals.
Logen, based in Bulgaria, specialises in the provision of audit
software and related consultancy services and, as a former reseller
of our GRC audit management and risk assessment solution, Pentana,
its acquisition enables Ideagen to create a solid operational base
in central Europe, enhancing our sales reach and future software
development capacity.
These businesses have already been successfully integrated into
the group.
IPI Solutions, acquired post period end, provides outstanding IP
that is already integrated with the Group's Electronic Quality
Management product 'Q-Pulse'. This extends our reach into the
manufacturing process within three of our target verticals.
All three acquisitions enhance the Group's business platform.
The Board continues to pursue acquisition opportunities in line
with its stated strategy of acquiring complementary businesses that
have strong IP and significant recurring revenues.
Product Strategy
"On Premise"
The focus for on premise product development going forward
continues to be the closer integration of the established product
set. Demand from customers continues to evolve towards the need for
robust operational risk management across the enterprise combining
the need for big data analysis with the escalation of information
available within a corporate environment. We believe the optimum
way to achieve this is through the implementation of a single,
modular platform.
As such, our efforts will be on the closer integration of our
best-in-breed product set to unify all product components
(development standards, installation method, user interface) into a
single standard format, and to enable product interoperability - or
the exchange of data across each product - through a common service
bus. This will allow us to rationalise the product set to avoid any
duplicate functionality whilst providing a modular platform.
The ability to deliver this comprehensive capability through a
modular portal will enable us to continue to pursue a 'land and
expand' growth strategy as well as move into complementary industry
verticals.
"Cloud"
To ensure that the Group takes advantage of the growing demand
for cloud based solutions we have continued to invest in Enlighten,
a risk-based, ultra-modern GRC software product. Enlighten has been
designed for large enterprise and built for the cloud using Amazon
Web Services (AWS). It contains all the rich features that any
large, highly regulated organisation needs to achieve exceptional
performance while managing compliance, quality and safety.
Enlighten is suitable for large enterprises who have a dispersed
workforce, require rapid deployment and fast access to a GRC
platform often through a mobile device.
The Group enhanced its cloud based software offering with the
acquisition of Covalent Software Ltd. The addition of the Covalent
product, a cloud-based performance management software platform
primarily for the Public Sector and Financial Services markets,
will allow Ideagen's existing product set to become a broader and
more valuable GRC solution, which will provide significant cross
selling opportunities and a strong platform for future growth.
Covalent's solutions are delivered via its cloud-based platform and
further enhances Ideagen's cloud development strategy, which the
Directors believe is an area of significant growth area for the
Group.
Current Trading & Outlook
The market for GRC management solutions remains fragmented and
the drivers are long term and highly strategic. Trading continues
to remain robust while a healthy pipeline reinforces confidence in
our forecasts.
Whilst we remain alert to prevailing economic and political
conditions, the Group has a strong presence in a variety of
different markets across the globe, which, together with our
increasing levels of recurring revenue and repeat business from our
3,000 customer base, provides us with confidence in the future
prospects of the Group.
David Hornsby
Chief Executive Officer
FINANCIAL REVIEW
Revenue for the 6 months ended 31 October 2016 increased by 22%
to GBP12.02m (2015: GBP9.87 m) as a result of strong organic
revenue growth of 16% and a contribution of GBP0.5m from the
acquisitions of Covalent Software and Logen. Recurring revenues now
represent 56% (2015: 53%) of overall revenues and are equivalent to
90% (2015: 87%) of fixed operating overheads. Strong customer
retention continued in the period with a 98% (2015: 97%) renewal
rate on maintenance and support contracts.
The group provides software solutions in two areas; GRC and
Content and Clinical. GRC is the main area of focus for the group
and this provides an increasing proportion of total revenues at 82%
(2015: 77%). Organic revenue growth in GRC was strong in the period
at 18%. Content and Clinical, which accounts for 18% of group
revenues (2015: 23%) is predominantly focused on content management
for the NHS. It has seen revenues decline in recent periods however
this stabilised in the first half of the year with organic revenue
growth of 8%.
Adjusted EBITDA increased by 29% to GBP3.11m (2014: GBP2.41m).
The adjusted EBITDA margin improved to 25.8% (2015: 24.4%)
resulting from the gearing effect of strongly growing revenues
while maintaining control of costs. Revenues are seasonally biased
towards the second half of the year thereby resulting in higher
adjusted EBITDA margins in the second half and for the year as a
whole.
The group has significant intangible assets from the
acquisitions it has made. The amortisation of these acquired
intangibles of GBP1.97m (2015: GBP1.86m) represents the majority of
the total depreciation and amortisation charge for the period of
GBP2.45m (2015: GBP2.14m). The amortisation of development costs
amounted to GBP0.37m (2015: GBP0.18m). The share-based payment
charge of GBP0.51m (2015: GBP0.38m) relates to the group's
equity-settled share option schemes including the group's Long Term
Incentive Plan.
The adjusted group tax charge was GBP0.31m (2015: GBP0.31m) and
is analysed in note 3. This has been adjusted to exclude the
deferred taxation associated with the amortisation of acquired
intangibles and share-based payment charges. The adjusted group tax
charge represents 12% (2015: 15%) of adjusted PBT of GBP2.63m
(2014: GBP2.13m). The Group continues to benefit from the
availability of R&D taxation credits.
As a result of the above, adjusted diluted earnings per share
increased by 28% to 1.25p (2015: 0.98p). Details of the calculation
of adjusted earnings per share are provided in note 2.
The Group's financial position has continued to strengthen with
net assets increasing to GBP34.7m (30 April 2016: GBP33.7m; 31
October 2015: GBP31.8m). Net current assets were reduced to GBP1.2m
(30 April 2016: GBP3.8m) largely due to the use of cash resources
to complete acquisitions. However, current liabilities includes
GBP7.7m (30 April 2016: GBP6.6m) in respect of revenue invoiced on
maintenance and support contracts which has been deferred to future
periods in accordance with the group's accounting policy. This is
not a cash liability.
The level of intangible assets increased to GBP36.9m (30 April
2016: GBP32.6m) mainly as a result of the intangibles acquired with
Covalent Software. The Group also capitalised GBP0.93m (2015:
GBP0.88m) of R&D development costs during the period which
represented 7.7% (2015: 8.9%) of total revenues.
Cash generated by operations improved significantly and amounted
to GBP3.0m (2015: GBP1.2m) representing 96% (2015: 48%) of adjusted
EBITDA. Free Cash flow also improved significantly to GBP1.8m
(2015: GBP0.04m) representing 59% (2015: 2%) of adjusted EBITDA.
The net cash cost of the acquisitions of Covalent Software and
Logen, completed in the period, amounting to GBP3.7m, was made
wholly from the group's existing cash resources. The group ended
the period with net cash balances of GBP4.8 million (30 April 2016:
GBP6.3m).
Event after the end of the reporting period
On 8 December 2016, Ideagen acquired the whole of the issued
share capital of IPI Solutions Limited, a company based in
Mansfield. Net consideration payable is GBP5.54 million being gross
consideration of GBP7.02million less GBP1.48 million of cash
balances in the business acquired. The consideration is payable as
to GBP4.42 million in cash plus GBP0.5 million of new Ideagen
shares at completion plus deferred cash payments of GBP1.64 million
12 months after completion and GBP0.46 million 24 months after
completion.
The GBP0.5 million of new Ideagen shares issued at completion is
represented by 889,680 ordinary shares issued at 56.2 pence each
being the average closing mid-market share price of Ideagen shares
over the 20 business days immediately prior to completion.
Dividend
The Board proposes increasing the interim dividend by 11% to
0.068 pence per share (2015: 0.061 pence per share) payable on 15th
March 2017 to shareholders on the register on 27th February 2017.
The corresponding ex-dividend date is 24th February 2017.
Graeme Spenceley
Finance Director
Ideagen plc
Consolidated Statement of Comprehensive Income for the six
months ended 31 October 2016
Six months Six months
ended ended
31 October 31 October
2016 2015
GBP'000 GBP'000
Revenue 12,024 9,867
Cost of sales (1,436) (1,206)
Gross profit 10,588 8,661
Operating costs (7,481) (6,254)
----------- -----------
Profit from operating activities
before depreciation, amortisation,
share-based payment charges and
exceptional items 3,107 2,407
Depreciation and amortisation (2,446) (2,141)
Share-based payment charges (509) (384)
Costs of acquiring businesses (176) -
----------- -----------
Loss from operating activities (24) (118)
Finance income - 3
----------- -----------
Loss before taxation (24) (115)
Taxation credit (note 3) 26 121
----------- -----------
Profit for the period 2 6
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss:
Exchange differences on translating
foreign operations 380 (10)
Corporation tax on exercise of
options 76 -
Total comprehensive income for
the period attributable to the
owners of the parent company 458 (4)
=========== ===========
Earnings per share (note 2) Pence Pence
Basic 0.00 0.00
Diluted 0.00 0.00
Ideagen plc
Consolidated Statement of Financial Position at 31 October
2016
31 October 30 April 31 October
2016 2016 2015
GBP'000 GBP'000 GBP'000
Assets and liabilities
Non-current assets
Intangible assets 36,887 32,572 33,891
Property, plant and equipment 445 433 339
Deferred income tax assets 777 877 962
----------- --------- -----------
38,109 33,882 35,192
----------- --------- -----------
Current assets
Inventories 16 33 55
Trade and other receivables 8,941 8,244 7,312
Cash and cash equivalents 4,817 6,317 5,442
----------- --------- -----------
13,774 14,594 12,809
----------- --------- -----------
Current liabilities
Trade and other payables 3,154 2,506 2,206
Contingent consideration
on business combinations - - 47
Current income tax liabilities 94 13 129
Deferred revenue 7,686 6,603 6,108
Deferred consideration
on business combinations 1,623 1,623 1,628
----------- --------- -----------
12,557 10,745 10,118
----------- --------- -----------
Non-current liabilities
Deferred consideration
on business combinations - - 1,613
Deferred income tax liabilities 4,587 4,048 4,434
----------- --------- -----------
4,587 4,048 6,047
----------- --------- -----------
Net assets 34,739 33,683 31,836
=========== ========= ===========
Ideagen plc
Consolidated Statement of Financial Position at 31 October 2016
(continued)
31 October 30 April 31 October
2016 2016 2015
GBP'000 GBP'000 GBP'000
Equity
Issued share capital 1,815 1,790 1,789
Share premium 23,766 23,598 23,568
Merger reserve 1,167 1,167 1,167
Share-based payments reserve 1,138 1,482 956
Retained earnings 6,392 5,565 4,373
Foreign currency translation
reserve 461 81 (17)
Equity attributable to
owners of the parent 34,739 33,683 31,836
=========== ========= ===========
Ideagen plc
Consolidated Statement of Cash Flows for the six months ended 31
October 2016
Six months Six months
ended 31 ended 31
October October
2016 2015
GBP'000 GBP'000
Cash flows from operating activities
Profit for the period 2 6
Depreciation of property, plant
and equipment 107 98
Loss on disposal of property,
plant and equipment - 2
Amortisation of intangible
non-current assets 2,339 2,043
Business acquisition costs
in profit or loss 176 -
Share-based payment charges
in profit or loss 509 384
Finance income recognised in
profit or loss - (3)
Taxation credit recognised
in profit or loss (26) (121)
Decrease in inventories 17 -
(Increase) / decrease in trade
and other receivables (108) 19
Increase / (decrease) in trade
and other payables 194 (1,158)
Decrease in deferred revenue (232) (119)
---------- ----------
Cash generated by operations 2,978 1,151
Interest received - 3
Income tax repaid 42 8
Business acquisition costs
paid (164) (102)
---------- ----------
Net cash generated by operating
activities 2,856 1,060
---------- ----------
Cash flows from investing activities
Net cash outflow on acquisition
of businesses net of cash acquired (3,657) -
Payments for development costs (932) (884)
Payments for property, plant
and equipment (90) (150)
Proceeds of disposal of property,
plant and equipment - 12
Net cash used by investing
activities (4,679) (1,022)
---------- ----------
Cash flows from financing activities
Proceeds from issue of shares
under share option scheme 193 141
Net cash generated by financing
activities 193 141
---------- ----------
Net (decrease) / increase in
cash and cash equivalents during
the period (1,630) 179
Cash and cash equivalents at
the beginning of the period 6,317 5,266
Effect of exchange rate changes
on cash balances held in foreign
currencies 130 (3)
Cash and cash equivalents at
the end of the period 4,817 5,442
---------- ----------
Ideagen plc: Consolidated Statement of Changes in Equity for the
six months ended 31 October 2016
Share Share Merger Share-based Retained Foreign Total
capital premium reserve payments earnings currency attributable
reserve translation to owners
reserve of the
parent
-------- -------- --------- ----------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2016 1,790 23,598 1,167 1,482 5,565 81 33,683
Shares issued under
share option
scheme 25 168 - - - - 193
Share-based payments - - - 403 - - 403
Transfer on exercise
of share
options - - - (747) 747 - -
Taxation on
share-based payments
in equity - - - - 2 - 2
Total transactions
with owners
recognised directly
in equity 25 168 - (344) 749 - 598
-------- -------- --------- ----------- --------- ------------ -------------
Profit for the year - - - - 2 - 2
Other comprehensive
income
for the year - - - - 76 380 456
-------- -------- --------- ----------- --------- ------------ -------------
Total comprehensive
income
for the year - - - - 78 380 458
-------- -------- --------- ----------- --------- ------------ -------------
Balance at 31 October
2016 1,815 23,766 1,167 1,138 6,392 461 34,739
======== ======== ========= =========== ========= ============ =============
Ideagen plc: Consolidated Statement of Changes in Equity for the
six months ended 31 October 2015
Share Share Merger Share-based Retained Foreign Total
capital premium reserve payments earnings currency attributable
reserve translation to owners
reserve of the
parent
-------- -------- --------- ----------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2015 1,773 23,443 1,167 653 4,160 (7) 31,189
Shares issued under
share option
scheme 16 125 - - - - 141
Share-based payments - - - 384 - - 384
Transfer on exercise
of share
options - - - (81) 81 - -
Taxation on
share-based payments
in equity - - - - 126 - 126
Total transactions
with owners
recognised directly
in equity 16 125 - 303 207 - 651
-------- -------- --------- ----------- --------- ------------ -------------
Profit for the period - - - - 6 - 6
Other comprehensive
income
for the period - - - - - (10) (10)
-------- -------- --------- ----------- --------- ------------ -------------
Total comprehensive
income
for the period - - - - 6 (10) (4)
-------- -------- --------- ----------- --------- ------------ -------------
Balance at 31 October
2015 1,789 23,568 1,167 956 4,373 (17) 31,836
======== ======== ========= =========== ========= ============ =============
Ideagen plc: Consolidated Statement of Changes in Equity for the
year ended 30 April 2016
Share Share Merger Share-based Retained Foreign Total
capital premium reserve payments earnings currency attributable
reserve translation to owners
reserve of the
parent
-------- -------- --------- ----------- --------- ------------ -------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 May 2015 1,773 23,443 1,167 653 4,160 (7) 31,189
Shares issued under
share option
scheme 17 155 - - - - 172
Share-based payments - - - 921 - - 921
Transfer on exercise
of share
options - - - (92) 92 - -
Taxation on
share-based payments
in equity - - - - 275 - 275
Equity dividends paid - - - - (306) - (306)
-------- -------- --------- ----------- --------- ------------ -------------
Total transactions
with owners
recognised directly
in equity 17 155 - 829 61 - 1,062
-------- -------- --------- ----------- --------- ------------ -------------
Profit for the year - - - - 1,317 - 1,317
Other comprehensive
income
for the year - - - - 27 88 115
-------- -------- --------- ----------- --------- ------------ -------------
Total comprehensive
income
for the year - - - - 1,344 88 1,432
-------- -------- --------- ----------- --------- ------------ -------------
Balance at 30 April
2016 1,790 23,598 1,167 1,482 5,565 81 33,683
======== ======== ========= =========== ========= ============ =============
Ideagen plc
Notes to the interim financial information
1 Basis of information
The interim financial information for the 6 months ended 31
October 2016 and the six months ended 31 October 2015 included in
this announcement is unaudited. The financial information for the
year ended 30 April 2016 included in this announcement does not
constitute the annual report and accounts of the Company for the
year ended 30 April 2016 within the meaning of section 434 of the
Companies Act 2006. The audited annual report and financial
statements of the Company for the year ended 30 April 2016 has been
filed with the Registrar of Companies. The auditor's report on
those financial statements was unqualified and did not contain any
statement under section 498 (2) or (3) of the Companies Act 2006
and did not include references to any matters to which the auditor
drew attention by way of emphasis. Consistent accounting policies
have been applied in the preparation of this information unless
otherwise stated below.
2 Earnings per share information
Basic earnings per share is calculated by dividing the profit
for the period attributable to the owners of the Company
('Earnings') by the weighted average number of ordinary shares
outstanding during the period. Diluted earnings per share is
calculated by dividing Earnings by the weighted-average number of
ordinary shares outstanding during the period as adjusted for the
effect of all potentially dilutive shares, including share
options.
In order to better demonstrate the performance of the Company,
adjusted earnings per share calculations have also been presented
which take into account items typically adjusted for by users of
financial statements. The adjusted earnings and earnings per share
information are shown below.
Earnings per share information Six months Six months
ended ended
31 October 31 October
2016 2015
GBP'000 GBP'000
Profit for the period (Earnings) 2 6
Adjustments:
Share-based payment charges 509 384
Deferred taxation on share-based
payment charges 54 (64)
Costs of acquiring businesses 176 -
Amortisation of acquired intangibles 1,973 1,859
Deferred taxation on amortisation
of acquired intangibles (393) (370)
------------ ------------
Adjusted earnings 2,321 1,815
Weighted average number of shares 179,705,928 177,871,466
Diluted weighted average number
of shares 186,201,454 186,023,737
Basic earnings per share 0.00 pence 0.00 pence
Diluted earnings per share 0.00 pence 0.00 pence
Basic adjusted earnings per 1.29 pence 1.02 pence
share
Diluted adjusted earnings per 1.25 pence 0.98 pence
share
3 Taxation
Further information on the taxation charge in the Statement of
Comprehensive Income is as follows:
Six months Six months
ended ended
31 October 31 October
2016 2015
GBP'000 GBP'000
Income taxation charge 145 60
Deferred tax credit on amortisation
of acquisition intangibles (393) (370)
Deferred tax on share-based payment
charges 54 (64)
Deferred tax charge on utilisation
of tax losses 48 104
Deferred tax charge on development
costs 120 149
Total deferred income taxation
credit (171) (181)
Total taxation credit (26) (121)
----------- -----------
4 Adjusted profit before taxation and adjusted taxation charge
6 months 6 months
ended ended
31 October 31 October
2016 2015
GBP'000 GBP'000
Adjusted earnings (note 2) 2,321 1,815
Adjusted taxation charge (below) 313 313
----------- -----------
Adjusted profit before taxation 2,634 2,128
----------- -----------
Taxation in the Statement of
Comprehensive Income (26) (121)
Add back:
Deferred taxation credit on amortisation
of acquisition intangibles (note
3) 393 370
Deferred taxation on share based
payment charges (54) 64
----------- -----------
Adjusted taxation charge 313 313
----------- -----------
Adjusted taxation charge based
on adjusted profit before taxation 11.9% 14.7%
----------- -----------
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BIGDBUDDBGRX
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