TIDMCEPS
RNS Number : 0026O
CEPS PLC
30 September 2019
30 September 2019
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (MAR).
CEPS PLC
(the "Group" or the "Company")
HALF-YEARLY REPORT
The Board is pleased to announce its unaudited half-yearly
report for the six months ended 30 June 2019.
CHAIRMAN'S STATEMENT
Reading last year's interim statement again I was appalled to
see that I had hoped that we were heading to some kind of "Brexit"
resolution by March 2019. As we all know this charade just goes on
and on and there is no doubt that on the macro view it has begun to
affect the "real economy".
Last year I said, "Until the situation is clarified, and we
return to "normal" politics and business analysis, every comment
from Brussels and counter comment from the Government and the
numerous interested parties will dominate the investment and
business landscape". Frankly, and sadly, I can't put it any better
a year on.
In the meantime, the CEPS Group of companies are getting on
trying to manage in these extraordinary times.
Review of the period
The biggest corporate event of the first six months was the
acquisition by CEM of a major competitor, Sampling International.
Considerable effort, time and no little expense has gone into the
rationalisation of the two businesses, such that each site will
become more specialised and, eventually, more efficient and
profitable. However, as we reported on 20 August 2019, during the
six months to 30 June 2019, CEM's losses increased
significantly.
Besides this, several very interesting acquisition opportunities
have been, and are being, pursued and we hope to be able to bring
some interesting news on this front to shareholders in the next few
months.
Financial review
Revenue for the first six months of the year was GBP10.2m
compared to revenue from continuing operations for the six months
to 30 June 2018 of GBP9.1m. The gross profit from continuing
operations of GBP3.6m compares to GBP3.4m in 2018 and results in a
slightly reduced margin of 35% (2018: 38%). The reduction is
predominantly due to the challenges experienced by CEM/Sampling
International. The exceptional cost of GBP115,000 also relates to
CEM and the restructuring costs following the acquisition of
Sampling International.
Pleasingly, all subsidiary companies, save for CEM/Sampling
International, have improved their first half EBITDA performance,
as shown in the segmental analysis.
The profit before tax from continuing operations of GBP150,000
compares to GBP346,000 for the same period last year. As mentioned
above, the reduction can be explained by the issues faced by
CEM/Sampling International and we are working closely with the
management team to address these issues.
Operational review
Aford Awards
The company has continued its steady progress with further loan
note reduction.
The company has again reviewed several acquisition opportunities
and remains keen to add to its business activities, at the right
time and at the right price.
CEM/Sampling International
The merger of these two companies took place at the end of March
2019. A significant cost saving has been implemented and the
efficiency process is well underway and, whilst currently
challenging, we believe it will start to bear fruit next year.
The company has continued to make good progress on sales but is
currently struggling to produce all the orders it has won during
the year on time.
Davies Odell
The company has performed below our expectation in the period
but is beginning to make progress. However, it is being hampered by
the decline in the value of Sterling and the headwind of raw
material cost increases from China.
Friedman's
The company continues to do well, and its new product areas will
hopefully start to move forward and contribute next year.
Hickton
Hickton has performed well in the period. The company is
operating in a very dynamic market place in which there has been
considerable corporate interest. Hickton is developing plans for
the next phase of its development.
Dividend
The Board is very keen to recommence the payment of dividends
after a very long time. However, it is not appropriate at this time
to reintroduce the payment of a dividend.
Prospects
Despite the Group enduring the losses of CEM/Sampling
International, the Board is confident that the remaining Group
companies will make progress over the next year.
David Horner
Chairman
30 September 2019
CEPS PLC
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2019
Note Continuing Discontinued
Operations Operations Audited
Unaudited Unaudited Unaudited Unaudited 12 months
6 months 6 months 6 months
to 30 to 30 6 months to 30 to 31
June June to 30 June June December
2019 2018 2018 2018 2018
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 4 10,174 9,056 3,118 12,174 21,592
Cost of sales (6,593) (5,619) (3,172) (8,791) (15,641)
---------- ------------ ------------- ---------- ----------
Gross profit/(loss) 3,581 3,437 (54) 3,383 5,951
Net operating expenses (3,119) (2,952) (296) (3,248) (5,322)
---------- ------------ -------------
462 485 (350) 135 629
Operating profit/(loss)
Exceptional item (115) - 20 20 (53)
Customer list impairment - - - - (588)
---------- ------------ -------------
Adjusted operating profit/(loss) 347 485 (330) 155 (12)
Analysis of adjusted
operating profit/(loss)
---------- ------------ ------------- ---------- ----------
Trading 636 650 (350) 300 1,015
Exceptional item 3 (115) - 20 20 (53)
Customer list impairment - - - - (588)
Group costs 4 (174) (165) - (165) (386)
---------- ------------ ------------- ---------- ----------
347 485 (330) 155 (12)
---------- ------------ ------------- ---------- ----------
Net finance costs/income 4 (197) (139) 21 (118) (296)
Profit/(loss) before
tax 150 346 (309) 37 (308)
Taxation 4 (191) (180) - (180) (568)
---------- ------------ ------------- ---------- ----------
(Loss)/profit for the
period (41) 166 (309) (143) (876)
---------- ------------ ------------- ---------- ----------
Other comprehensive loss
Items that will not be
reclassified to profit
or loss
---------- ------------ ------------- ---------- ----------
Actuarial loss on defined
benefit pension plans - - - - (88)
---------- ------------ ------------- ---------- ----------
Items that may be subsequently
reclassified to profit
or loss - - - - -
---------- ------------ -------------
Other comprehensive loss
for the period, net of
tax - - - - (88)
---------- ------------ -------------
Total comprehensive (loss)/income
for the period (41) 166 (309) (143) (964)
---------- ------------ ------------- ---------- ----------
(Loss)/profit attributable
to:
Owners of the parent (270) (419) (309) (728) (1,369)
Non-controlling interest 229 585 - 585 493
---------- ------------ ------------- ---------- ----------
(41) 166 (309) (143) (876)
---------- ------------ ------------- ---------- ----------
Total comprehensive (loss)/income
attributable to:
Owners of the parent (270) (419) (309) (728) (1,457)
Non-controlling interest 229 585 - 585 493
---------- ------------ ------------- ---------- ----------
(41) 166 (309) (143) (964)
---------- ------------ ------------- ---------- ----------
Earnings per share attributable
to owners of the parent
during the period
----------
basic and diluted 5 (1.59)p (3.17)p (2.34)p (5.51)p (9.06)p
---------- ------------ ------------- ---------- ----------
CEPS PLC Consolidated Statement of Financial Position
As at 30 June 2019
Note Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 1,293 1,121 991
Right-of-use asset 10 1,478 - -
Intangible assets 5,102 5,600 4,741
Deferred tax asset - 5 -
7,873 6,726 5,732
---------- ---------- ------------
Current assets
Inventories 2,728 2,287 1,815
Trade and other receivables 4,029 3,561 3,331
Cash and cash equivalents
(excluding bank overdrafts) 2,048 1,528 1,705
8,805 7,376 6,851
---------- ---------- ------------
Total assets 4 16,678 14,102 12,583
========== ========== ============
Equity
Capital and reserves attributable
to owners of the parent
Called up share capital 5, 7 1,700 1,700 1,700
Share premium 5,841 5,789 5,841
Retained earnings (4,408) (3,284) (4,013)
---------- ---------- ------------
3,133 4,205 3,528
Non-controlling interest in equity 2,082 1,932 1,932
Total equity 5,215 6,137 5,460
---------- ---------- ------------
Liabilities
Non-current liabilities
Borrowings 4,667 1,284 1,128
Deferred tax liability 88 71 88
4,755 1,355 1,216
---------- ---------- ------------
Current liabilities
Borrowings 1,082 2,320 2,734
Lease liability 1,639 - -
Trade and other payables 3,805 4,253 2,925
Current tax liabilities 182 37 248
6,708 6,610 5,907
---------- ---------- ------------
Total liabilities 11,463 7,965 7,123
---------- ---------- ------------
Total equity and liabilities 16,678 14,102 12,583
========== ========== ============
CEPS PLC
Consolidated Statement of Cash Flows
Six months ended 30 June 2019
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2019 2018 2018
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 72 1,439 1,651
Income tax paid - - (258)
Interest paid (197) (118) (311)
Net cash (used in)/generated from operations (125) 1,321 1,082
---------- ---------- ------------
Cash flows used in investing activities
Acquisition of subsidiary net of cash 28 - -
acquired
Purchase of property, plant and equipment (87) (548) (859)
Proceeds from sale of assets - - 1
Purchase of intangibles - - (150)
Net cash used in investing activities (59) (548) (1,008)
---------- ---------- ------------
Cash flows from financing activities
Proceeds/(repayment) of borrowings 623 (1,157) (267)
Proceeds from share issue (net of costs) - 1,326 1,326
Dividend paid to non-controlling interests - - (45)
Repayment of capital element of finance
leases (96) (265) (234)
Net cash generated from/(used in) financing
activities 527 (96) 780
---------- ---------- ------------
Net increase in cash and cash equivalents 343 677 854
Cash and cash equivalents at the beginning
of the period 1,705 851 851
Cash and cash equivalents at the end
of the period 2,048 1,528 1,705
========== ========== ============
Cash generated from/(used in) operations
Profit before income tax 150 37 (308)
Adjustments for:
Depreciation and amortisation 404 308 470
Profit on disposal of a subsidiary - - (147)
Exceptional item - (20) -
Customer list impairment - - 588
Loss on disposal of property, plant
and equipment - - 29
Net finance costs 197 118 296
Operating profit before changes in
working capital and provisions 751 443 928
Increase in inventories (613) (517) (86)
Decrease/(increase) in trade and other
receivables 237 349 (773)
(Decrease)/increase in trade and other
payables (303) 1,264 1,682
Decrease in provisions - (100) (100)
Cash generated from operations 72 1,439 1,651
========== ========== ============
Cash and cash equivalents
Cash at bank and in hand 2,048 1,528 1,705
Bank overdrafts repayable on demand - - -
2,048 1,528 1,705
========== ========== ============
CEPS PLC
Consolidated Statement of Changes in Equity
Six months ended 30 June 2019
Share Share Retained Attributable Non-controlling Total
capital premium earnings to owners interest equity
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2018
(audited) 1,320 4,843 (2,556) 3,607 1,347 4,954
--------- --------- ---------- ------------- ---------------- --------
(Loss)/profit for
the period - - (728) (728) 585 (143)
--------- --------- ---------- ------------- ---------------- --------
Total comprehensive
(loss)/ income for
the period - - (728) (728) 585 (143)
--------- --------- ---------- ------------- ---------------- --------
Proceeds from shares
issued net of expenses 380 946 - 1,326 - 1,326
--------- --------- ---------- ------------- ---------------- --------
Total contributions
by owners of the parent
recognised in equity 380 946 - 1,326 - 1,326
--------- --------- ---------- ------------- ---------------- --------
At 30 June 2018 (unaudited) 1,700 5,789 (3,284) 4,205 1,932 6,137
--------- --------- ---------- ------------- ---------------- --------
Actuarial loss - - (88) (88) - (88)
--------- --------- ---------- ------------- ---------------- --------
Loss for the period - - (641) (641) (92) (733)
--------- --------- ---------- ------------- ---------------- --------
Total comprehensive
loss for the period - - (729) (729) (92) (821)
--------- --------- ---------- ------------- ---------------- --------
Changes in ownership
interest in a subsidiary - - - - 137 137
--------- --------- ---------- ------------- ---------------- --------
Dividend paid to non-controlling
interest - - - - (45) (45)
--------- --------- ---------- ------------- ---------------- --------
Total distributions
recognised directly
in equity - - - - 92 92
--------- --------- ---------- ------------- ---------------- --------
Correction to opening
position - 52 - 52 - 52
--------- --------- ---------- ------------- ---------------- --------
At 31 December 2018 1,700 5,841 (4,013) 3,528 1,932 5,460
(audited)
--------- --------- ---------- ------------- ---------------- --------
(Loss)/profit for
the period - - (270) (270) 229 (41)
--------- --------- ---------- ------------- ---------------- --------
Total comprehensive
(loss)/income for
the period - - (270) (270) 229 (41)
--------- --------- ---------- ------------- ---------------- --------
Acquisition of a subsidiary - - - - (79) (79)
--------- --------- ---------- ------------- ---------------- --------
Opening balance adjustment
re IFRS16 - - (125) (125) - (125)
--------- --------- ---------- ------------- ---------------- --------
At 30 June 2019 (unaudited) 1,700 5,841 (4,408) 3,133 2,082 5,215
--------- --------- ---------- ------------- ---------------- --------
Notes to the financial information
1. General information
The Company is a limited liability company incorporated and
domiciled in the UK. The address of its registered office is 11
Laura Place, Bath BA2 4BL and the registered number of the company
is 00507461.
The Company is listed on AIM.
This condensed consolidated half-yearly financial information
was approved by the Directors for issue on 30 September 2019.
This condensed consolidated half-yearly financial information
does not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006. Statutory accounts for the year
ended 31 December 2018 were approved by the Board of directors on 7
May 2019 and delivered to the Registrar of Companies. The report of
the auditors on those accounts was unqualified, did not contain an
emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006.
This condensed consolidated half-yearly financial information
has not been reviewed or audited.
There is no seasonality or cyclicality in relation to the
condensed consolidated half-yearly financial information.
Basis of preparation
This condensed consolidated half-yearly financial information
for the six months ended 30 June 2019 has been prepared in
accordance with IAS 34, 'Interim Financial Reporting' as adopted by
the European Union. The condensed consolidated half-yearly
financial information should be read in conjunction with the annual
financial statements for the year ended 31 December 2018, which
have been prepared in accordance with IFRSs as adopted by the
European Union.
Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 December 2018, as
described in those annual financial statements. The financial
position and performance of the group was affected by the new
leasing standard IFRS 16 Leases (see note 10) during the six months
to 30 June 2019.
2. Acquisitions in the current period
Acquisition of Travelfast Limited trading as Sampling
International
On 27 March 2019 the Group acquired 100% of the ordinary shares
in Travelfast Limited for a maximum aggregate consideration of
GBP1,200,009, payable in cash over three years based on
performance. Travelfast Limited, trading as Sampling International,
is one of the leading providers in designing and manufacturing
sample books, shade cards and other display solutions. The
acquisition of Travelfast Limited made the newly formed group one
of the largest individual pattern book and shade card makers in the
UK, with two production facilities.
Effect of acquisition
The acquisition had the following provisional effect on the
Group's assets and liabilities.
2019
GBP'000
Property, plant and equipment 380
Inventories 300
Trade and other receivables 936
Cash and cash equivalents 28
Trade and other payables (2,038)
Net identifiable assets and
liabilities (394)
Fair value of assets acquired (394)
Goodwill 394
Cash consideration transferred -
Cash acquired 28
Cash outflow -
The provisional fair values will be disclosed further in the
year end accounts.
3. Exceptional item
CEM
The exceptional item in the current year to date relates to the
acquisition costs of Travelfast Limited and the subsequent
restructuring costs of the CEM group.
Sunline
The exceptional item last year related to the liquidation of
Sunline Direct Mail Limited on 26 June 2018.
4. Segmental analysis
All activities, apart from those relating to Sunline, are
classed as continuing.
The chief operating decision maker of the Group is its Board.
Each operating segment regularly reports its performance to the
Board which, based on those reports, allocates resources to and
assesses the performance of those operating segments.
Operating segments and their principal activities are as
follows:
- Aford Awards, a sports trophy and engraving company;
- CEM, a manufacturer of fabric and wallpaper pattern books,
swatches and shade cards together with Travelfast, trading as
Sampling International, a manufacturer of sample books and shade
cards for the wallpaper and floorcovering industries;
- Davies Odell, a manufacturer and distributor of protection
equipment, matting and footwear components;
- Friedman's, a convertor and distributor of specialist Lycra;
- Hickton Consultants, a provider of services to the
construction industry together with BRCS (Building Consultants), a
leading provider of building control services nationally;
- Sunline, a supplier of services to the direct mail market
The United Kingdom is the main country of operation from which
the Group derives its revenue and operating profit and is the
principal location of the assets of the Group. The Group
information provided below, therefore, also represents the
geographical segmental analysis. Of the GBP10,174,000
(2018: GBP12,174,000) revenue, GBP8,910,000 (2018:
GBP10,790,000) is derived from UK customers.
The Board assesses the performance of each operating segment by
a measure of adjusted earnings before interest, tax, depreciation
and amortisation and Group costs. Other information provided to the
Board is measured in a manner consistent with that in the financial
statements.
i) Results by segment
Unaudited 6 months to 30 June 2019
Aford Davies Total
Awards CEM Odell Friedman's Hickton Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,094 2,264 1,692 2,750 2,374 10,174
-------- -------- -------- ------------- ---------- --------
Segmental result
(EBITDA) before exceptional
costs 285 (355) 49 613 448 1,040
Exceptional item - (115) - - - (115)
-------- -------- -------- ------------- ---------- --------
Segmental result
(EBITDA) after exceptional
costs 285 (470) 49 613 448 925
-------- -------- -------- ------------- ----------
Right of use depreciation
charge (42) (67) (19) (47) (7) (182)
Depreciation and
amortisation charge (3) (59) (27) (122) (11) (222)
-------- -------- -------- ------------- ----------
Group costs (174)
Net finance costs (197)
Profit before taxation 150
Taxation (191)
--------
Loss for the period (41)
========
Unaudited 6 months to 30 June 2018
Aford Davies Continuing Discon-tinued Total
Awards CEM Odell Friedman's Hickton operations Sunline Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,065 1,245 1,956 2,792 1,998 9,056 3,118 12,174
-------- -------- -------- ------------- ---------- ------------ -------------- --------
Segmental result
(EBITDA) before
exceptional costs 231 (48) (16) 358 285 810 (202) 608
Exceptional costs - - - - - 20 20
-------- -------- -------- ------------- ---------- ------------ -------------- --------
Segmental result
(EBITDA) after
exceptional
costs 231 (48) (16) 358 285 810 (182) 628
-------- -------- -------- ------------- ----------
Depreciation and
amortisation charge (4) (35) (11) (60) (50) (160) (148) (308)
-------- -------- -------- ------------- ----------
Group costs (165) - (165)
Net finance costs (139) 21 (118)
------------ --------------
Profit/(loss) before
taxation 346 (309) 37
Taxation (180) - (180)
------------ -------------- --------
Profit/(loss) for
the period 166 (309) (143)
============ ============== ========
Audited Year to 31 December 2018
Aford Davies Continuing Discon-tinued Total
Awards CEM Odell Friedman's Hickton operations Sunline Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,902 2,824 3,919 5,345 4,484 18,474 3,118 21,592
-------- -------- -------- ------------- ---------- ------------ -------------- ---------
Expenses (1,564) (3,251) (4,026) (4,173) (3,771) (16,785) (3,322) (20,107)
Segmental result
(EBITDA) before 338 (427) (107) 1,172 713
exceptional costs - - - - - 1,689 (204) 1,485
-------- -------- -------- ------------- ----------
Exceptional costs - (53) (53)
-------- -------- -------- ------------- ---------- ------------ -------------- ---------
Segmental result
(EBITDA) after
exceptional
costs 338 (427) (107) 1,172 713 1,689 (257) 1,432
-------- -------- -------- ------------- ----------
Depreciation and
amortisation
charge (13) (68) (58) (179) (6) (324) (146) (470)
Customer list
impairment (588) - (588)
Group costs (386) - (386)
Net finance costs (254) (42) (296)
------------ --------------
Profit/(loss)
before
taxation 137 (445) (308)
Taxation (568) - (568)
------------ -------------- ---------
Loss for the year (431) (445) (876)
============ ============== =========
ii) Assets and liabilities by segment
Unaudited as at 30 June
Segment assets Segment liabilities Segment net assets/(liabilities)
2019 2018 2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
CEPS Group 299 627 (2,371) (755) (2,072) (128)
Aford Awards 1,815 1,796 (439) (424) 1,376 1,372
CEM 3,457 1,928 (4,208) (2,286) (751) (358)
Davies Odell 1,567 1,993 (1,174) (1,921) 393 72
Friedman's 6,030 4,284 (1,892) (999) 4,138 3,285
Hickton 3,510 3,474 (1,379) (1,580) 2,131 1,894
Total - Group 16,678 14,102 (11,463) (7,965) 5,215 6,137
======== ======== =========== ========= ================= ================
Audited as at 31 December 2018
Segment assets Segment liabilities Segment net
assets/(liabilities)
GBP'000 GBP'000 GBP'000
CEPS Group 59 (1,623) (1,564)
Aford Awards 1,762 (494) 1,268
CEM 1,090 (1,410) (320)
Davies Odell 1,426 (966) 460
Friedman's 4,759 (1,017) 3,742
Hickton 3,487 (1,613) 1,874
Total - Group 12,583 (7,123) 5,460
=============== ==================== =======================
5. Earnings per share
Basic earnings per share is calculated on the loss after
taxation for the period attributable to owners of the Company of
GBP270,000 (2018: loss of GBP728,000) and on 17,000,000 (2018:
13,199,940) ordinary shares, being the weighted number in issue
during the period.
No adjustment is required for dilution in either period as there
are no items that would have a dilutive impact on earnings per
share.
6. Net debt and gearing
Gearing ratios at 30 June 2019, 30 June 2018 and 31 December
2018 are as follows:
Group Group Group audited
unaudited unaudited 31 December
30 June 2019 30 June 2018 2018
GBP'000 GBP'000 GBP'000
Total borrowings 4,906 2,376 3,057
Less: cash and cash equivalents (2,048) (1,528) (1,705)
-------------- -------------- --------------
Net debt 2,858 848 1,352
-------------- -------------- --------------
Total equity 5,215 6,137 5,460
-------------- -------------- --------------
Gearing ratio 55% 14% 25%
In order to provide a more meaningful gearing ratio, total
borrowings are the sum of bank borrowings and third-party debt,
excluding loan notes used to finance the Group's acquisitions.
7. Share capital and premium
Number Share capital Share premium Total
of shares GBP'000 GBP'000 GBP'000
At 1 January 2019 and 30 June
2019 17,000,000 1,700 5,841 7,541
----------- -------------- -------------- ---------
8. Related-party transactions
The Group has no material transactions with related parties
which might reasonably be expected to influence decisions made by
users of these financial statements.
During the period the Company entered into the following
transactions with its subsidiaries:
Sunline
Aford Direct
Awards CEM Davies Signature Hickton Mail
(Holdings) Teal Odell Fabrics Holdings (Holdings)
Limited Limited Limited Limited Limited Limited
GBP'000 GBP' GBP'000 GBP'000 GBP'000 GBP' 000
000
Receipt of equity
share dividend
- 2019 - - - - - -
- 2018 - - - - - -
- For the year to - - - 55 - -
31 December 2018
(audited)
Receipt/(write-back)
of preference share
dividend
- 2019 - - - - - -
- 2018 - - - - - (52)
- For the year to - - - - - -
31 December 2018
(audited)
Receipt/(write-back)
of loan interest
- 2019 19 86 12 - 24 -
- 2018 27 48 3 - 24 (125)
- For the year to
31 December 2018
(audited) 51 111 12 - 49 -
Receipt/(write-back)
of management charge
income
- 2019 10 - 8 18 6 -
- 2018 10 - 8 18 6 1
- For the year to
31 December 2018
(audited) 20 - 15 35 13 1
Amount owed to the
Company
* 30 June 2019 405 1,325 486 - 623 -
* 30 June 2018 618 1,872 194 - 623 -
* For the year to 31 December 2018 (audited) 537 - 534 - 623 -
Loans and investments
written-off or impaired
- 2019 - 2,719 - - - -
- 2018 - - - - - -
* For the year to 31
December 2018
(audited) - 2,719 - - - 2,702
9. AIM Compliance Committee
CEPS PLC is quoted on AIM and, as such, under AIM Rule 31 the
Company is required to:
1. have in place sufficient procedures, resources and controls
to enable its compliance with the AIM Rules;
2. seek advice from its nominated advisor ("Nomad") regarding
its compliance with the AIM Rules whenever appropriate and take
that advice into account;
3. provide the Company's Nomad with any information it requests
in order for the Nomad to carry out its responsibilities under the
AIM Rules for Companies and the AIM Rules for Nominated
Advisers
4. ensure that each of the Company's directors accepts full
responsibility, collectively and individually, for compliance with
the AIM Rules; and
5. ensure that each director discloses without delay all
information which the Company needs in order to comply with AIM
Rule 17 (Disclosure of Miscellaneous Information) insofar as that
information is known to the director or could with reasonable
diligence be ascertained by the director.
In order to ensure that these obligations are being discharged
the Board has established a committee of the Board (the "AIM
Compliance Committee"), chaired by Vivien Langford, an executive
director of the Company.
Having reviewed relevant Board papers and met with the Company's
Executive Board and the Nomad to ensure that such is the case, the
AIM Compliance Committee is satisfied that the Company's
obligations under AIM Rule 31 have been satisfied during the period
under review.
10. Changes in accounting policies
This note explains the impact of the adoption of IFRS 16 Leases
on the Group's financial statements and discloses the new
accounting policies that have been applied from 1 January 2019.
The new Standard has been applied using the modified
retrospective approach, with the cumulative effect of adopting IFRS
16 being recognised in equity as an adjustment to the opening
balance of retained earnings for the current period. Prior periods
have not been restated. The reclassifications and the adjustments
arising from the new leasing rules are therefore recognised in the
opening balance sheet on 1 January 2019.
The Group has elected not to include initial direct costs in the
measurement of the right-of-use asset for operating leases in
existence at the date of initial application of IFRS 16, being 1
January 2019. At this date, the Group has also elected to measure
the right-of-use assets at an amount equal to the lease liability
adjusted for any prepaid or accrued lease payments that existed at
the date of transition.
All of the lease agreements CEPS reported as operating leases in
2018 were converted as lease agreements and recognised on the
Consolidated Statement of Financial Position on the adoption of
IFRS 16.
On transition to IFRS 16, the weighted average incremental
borrowing rate applied to lease liabilities recognised under IFRS
16 was 8%.
Reconciliation of total operating lease commitments
Total
GBP'000
Total operating lease commitments disclosed
at 31 December 2018 2,387
Property - changes of lease length to break
date (665)
Vehicles - change of recognition to IFRS 16
present value (6)
Total lease liabilities recognised under IFRS
16 at 1 January 2019 1,716
The impact of adopting IFRS 16 for the six months to 30 June
2019 compared to prior years accounting standards is shown
below:
Total
GBP'000
Increase in depreciation 182
Increase in interest expense 72
Decrease in lease expense (219)
Decrease in underlying profit 35
Statement of directors' responsibility
The directors confirm that, to the best of their knowledge,
these condensed consolidated half--yearly financial statements have
been prepared in accordance with IAS 34 as adopted by the European
Union. The interim management report includes a fair review of the
information required by DTR 4.2.7R and DTR 4.2.8R, namely:
-- an indication of important events that have occurred during
the first six months of the financial year and their impact on the
condensed set of financial statements; and
-- material related-party transactions in the first six months
of the financial year and any material changes in the related-party
transactions described in the last Annual Report.
A list of current directors is maintained on the CEPS PLC Group
website: www.cepsplc.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LLFIVASIDFIA
(END) Dow Jones Newswires
September 30, 2019 02:00 ET (06:00 GMT)
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