TIDMSWP
RNS Number : 6201I
SWP Group PLC
27 March 2015
SWP Group plc (the "Group")
Half Yearly Results
for the six months ended 31 December 2014
Financial Highlights
n Group sales decreased by 13% to GBP8.632M (2013:
GBP9.920M).
n Operating profit before exceptional costs and amortisation of
intangible assets fell by 44% to GBP480K (2013: GBP863K).
n Profits before tax decreased by 44% to GBP347K (2013:
GBP624K).
n Earnings per share decreased to 0.14p per share (2013:
0.25p).
n Group bank debt reduced by 49% to GBP859K (2013:
GBP1.692M).
n Finance lease obligations increased to GBP954K (2013:
GBP13K).
n Profit attributable to associate increased to GBP82K (2013:
GBP15K).
n Capital expenditure in period increased to GBP703K (2013:
GBP128K).
Operational Highlights
n New production line at ULVA in Telford delivering to plan in
terms of productivity, efficiency, yield and quality.
n New production facilities and factory established at West
Bromwich in West Midlands to house manufacturing of ULVAGRP by
May/June 2015.
n Nuclear business at Plasflow at increased levels.
n Fullflow International development in accordance with
plan.
n Temporary drop in sales at ULVA due to timing of projects.
n Orderly closure of Crescent of Cambridge Limited to eliminate
losses.
n Continued commitment to R&D to develop ULVA brands.
n Maintained cost control throughout the various businesses.
n Strengthening of management teams at both ULVA and Fullflow
through recruitment of key personnel.
Alan Walker, Executive Chairman, commented:
"The results delivered in this six month period reflect the
adverse timing associated with project led businesses. ULVA
continues to make progress and we expect the arrival of ULVAGRP for
the new 2015/2016 financial year to be welcomed by the market.
Prospects for 2015/2016 appear to be encouraging for this quality
business. At Fullflow and Plasflow progress has been made but there
remains a lot to do to fulfil the real potential of these brands on
an international basis. The closure of Crescent whilst
disappointing will eliminate losses and senior management time can
be more profitably deployed in the promotion of our core
activities"
Chairman's Statement
Corporate Review
When I last reported to shareholders at our most recent Annual
General Meeting I was able to report that following the strong
results recorded for the year to 30(th) June 2014, we anticipated
steady if unspectacular results for the current year. This has
proved to have been the case primarily due to the project led
nature of our two principal businesses, ULVA, a leading supplier of
specialised materials designed to reduce Corrosion Under Insulation
("CUI") and Fullflow, a leading supplier in the delivery of
syphonic rainwater management systems to a wide cross-section of
international customers.
In the corresponding period last year ULVA benefitted from the
carryover from the previous year of a major supply contract, the
absence of which this year has resulted in reduced sales. Turnover
has in the main centred on an increased number of smaller projects
due to the timing of further major international projects where
ULVA has been specified, falling into periods outside the current
financial year.
Financial Results
The sharp upturn in economic activity in the United Kingdom has
witnessed greater enquiry levels within Fullflow's core business in
the UK, which extends beyond the construction industry, into the
provision of fabricated and welded pipe solutions to the nuclear
sector from Plasflow's dedicated facilities based in Rotherham.
Market conditions have improved despite competitive pressures. At
the same time ULVA's presence in the global oil and gas
petrochemical markets has been largely unaffected by the rapid and
dramatic fall in oil prices as most of the projects with which ULVA
is associated have been in the planning phase for a number of
years. In the event that the oil price remains at the current
depressed level, it is envisaged that certain projects could be
mothballed and/or postponed towards the end of the decade from 2019
onwards. At least in the short run over the next two to three years
ULVA benefits from the transparency over a number of large projects
where ULVAShield has been specified which should provide
significant revenue streams going forward.
Unaudited Unaudited
six months six months
ended 31.12.14 ended 31.12.13
GBP'000 GBP'000
Revenue 8,632 9,920
Operating profit before exceptional
costs and amortisation of intangible
assets 480 863
Profit before tax 347 624
Taxation (69) (122)
Profit after tax 278 502
Earnings per share 0.14p 0.25p
Revenue in the period declined to GBP8.63M (2013: GBP9.92M) with
operating profits before exceptional costs and amortisation of
intangible assets falling to GBP480K (2013: GBP863K) or by 44.3%.
Profits before taxation fell to GBP347K (2013: GBP624K) with
earnings per share declining to 0.14p per share (2013: 0.25p).
Group Bank Debt
A consistent feature of the Group's results over the past three
years has been our ability to reduce bank debt throughout the
recession to the current low levels of gearing. This is primarily
due to the incidence of strong cash generation within ULVA which
has not only permitted the reduction in borrowings, but also
allowed the business to invest heavily in its future through two
major capital expenditure programmes to which I refer below.
On a straight year-on-year comparison, bank debt has declined to
GBP859K (2013: GBP1.692M) or 49.2% notwithstanding the investment
of GBP1.721M in capital expenditure in the year to 30(th) June 2014
and a further GBP703K in the six months to 31(st) December 2014.
Against this, however one has to take cognisance of the
introduction of finance leases which have been entered into of
GBP799K at 30(th) June 2014 which have since reduced to GBP595K as
at the period end on 31(st) December 2014 (2013: GBP4K). The return
on capital within ULVA is considerable as is its ability to fund
and discharge the lease obligations over the next three years.
As in previous years the Consolidated Statement of Financial
Position remains robust with investment in the modernisation and
expansion into plant and equipment of a bespoke nature financed
largely through cash generated within the business.
Operational Highlights
ULVA
ULVA specialises in the manufacture of systems to reduce
corrosion under insulation (CUI) in the oil, gas and petrochemical
sectors.
Less than a year has passed since the commissioning of the
process line in Telford for the manufacture of the ULVAShield range
of products but the substantially extended operations are already
very much "the way we do things around here" which is of great
credit to ULVA's operations team. Productivity, efficiency, yield
and quality are all precisely to plan.
The business is now well into the launch of its new ULVAGRP
product range. Product formulations and recipes were completed over
one year ago which has allowed the complete range of third party
testing and accreditation to be undertaken and established. The
complete range of moulding tools is now in place ready to commence
supply of the ULVAClad pre-cured system. The commercial launch at
Offshore Korea in November 2014 generated substantial interest
ahead of the commencement of supply in the final quarter of the
financial year ending on 30(th) June 2015. A new facility has been
established in West Bromwich in order to take advantage of the
historical skill base that has been long established as a centre of
excellence for the UK in the area, for this particular technology.
Installation of the "designed for purpose" process line, which is
being designed and manufactured at a specialist company in Germany,
will take place during April and May 2015 with commercial supply
following almost immediately.
ULVA's presence continues to grow in terms of depth of
specification and the number of projects being concurrently
transacted which is being aided by the stability in ULVA's globally
based team. As predicted the absence of a single large project in
the current financial year will mean that overall results will not
match the prior year. However, continued growth in the ULVAShield
range of projects and customers combined with the anticipated flow
of ULVAGRP systems gives cause for optimism for the financial year
to 30(th) June 2016 ahead of the commencement of long awaited major
projects thereafter.
ULVA continues to invest heavily in R&D in support of the
requirement for innovative solutions from discerning customers and
specifiers all over the world.
Fullflow
Shareholders will recognise that Fullflow's brand is synonymous
with the provision of rainwater management systems to a wide range
of customers on an increasingly global basis who appreciate the
advantages of using modern technology to drain large roofscapes
effectively and efficiently. This is increasingly prevalent when
rainfall intensity is more volatile than in the past and climatic
weather conditions are constantly changing.
Fullflow Group
In the United Kingdom market sentiment within the construction
sector has continued to improve. Enquiry levels have increased
across the board and there are encouraging signs that
infrastructure projects particularly in the area of waste plants,
crossrail and distribution centres as well as in the field of
education through schools are areas of growth. In the UK, markets
remain price sensitive with competitive pressures being applied by
main contractors whose only objective criteria to assess the award
of a contract appears to be "price". This excludes most if not all
elements of the tender offerings including product warranty,
insurance and quality of installation whether or not in accordance
with specification. This is rapidly becoming an area of concern for
the ultimate end user of these systems whose reliance on collateral
warranties long after the main contractor has moved on is open to
serious doubt as sub contractors disappear from the market into
insolvency only to return shortly thereafter in another guise to
resume their activities from where they left off. In such
circumstances main contractors are doing their employers and indeed
the image of the syphonic sector a disservice and potentially long
term damage. Fullflow is embracing the challenges which this trend
has created with customary vigour. Fullflow has been slow to react
to the changing circumstances within the construction industry in
the UK. However, the sales team has been strengthened and our
product offering refined in a number of key areas so as to promote
the advantages of specifying Fullflow's product offering which has
installed well over 30,000 systems over the past 30 years.
Technical innovation features prominently, the majority of which is
designed to promote productivity and effectiveness on site. The
results to the half year have been disappointing but the order book
has been increasing and the measures taken to inject leadership and
focus are expected to deliver improved results for the full year to
30(th) June 2015.
Fullflow International
This rapidly expanding business in terms of territories and
opportunities continues to please. The brand is associated with
leadership in the field of syphonics and is being heavily promoted
in countries such as Brazil, Mexico and Korea. The completion of
the major infrastructure project in the shape of the Fiat/Chrysler
car plant in Gionna, Brazil, was hailed by our customer as a huge
success and represents a crucial example of Fullflow's capabilities
in international markets through supply of components, design and
project management allied to the competence of locally selected
partners to supply locally sourced materials and installation
labour. The results to the period end are entirely to plan and the
expectations for the financial year are similar to those of last
year. This well managed business represents a cornerstone in
Fullflow's strategy of expanding internationally in line with
increased globalisation of the brand.
Fullflow Systemé
It is fair to say that whilst the UK suffered in the depths of
recession during the period 2008 - 2012 the French economy remained
fairly resilient. The economic fortunes of France have since
declined and the country faces difficult economic conditions which
are having a deleterious effect on its construction sector. For
this reason we continue to take a cautious approach to our business
in France. The principal feature of this current year lies in the
execution of a major contract to install a large syphonic system
into the new Stade de Lyon. This contract began with a slow and
unproductive start which rendered the period results as
disappointing but the project is now in full swing with delivery
expected to complete in July 2015 in readiness for the new season
in September 2015 when Lyon are expected to feature in the European
Champions League if their form is sustained to the end of this
soccer season. Elsewhere margins continue to be under pressure as
we execute contracts on a national basis and we are taking
stringent measures to the control of costs at a time of economic
uncertainty.
Plasflow
I am happy to report that this business is enjoying a period of
strong growth particularly in the field of supply to the nuclear
sector where our experienced team is able to offer large scale
pipework solutions to most of the UK nuclear plants under the
ownership and control of EDF of France. There are three main
strands to Plasflow's business activities. Firstly, as a sub
contractor to each of the Fullflow businesses in the UK and
internationally where fabrications of pipe and rail are carried out
in Rotherham and dispatched to site wheresoever located. Secondly,
as a fabricator of choice to a number of UK third party customers
who recognise that through Plasflow's expertise and advanced
welding techniques they enjoy good relations across a wide range of
customers whose needs are aligned with the core competences on
offer at Plasflow. Thirdly, as a major provider of pipe based
solutions to meet the technically advanced requirements of the
nuclear industry in the UK. As a core supplier in partnership with
other major sub contractors to the nuclear industry, Plasflow has
carved its own niche which has enabled it not only to record strong
profits for the period but to anticipate a continuation to the end
of the financial year to 30(th) June 2015 and beyond.
Crescent of Cambridge
This small business operating from St Ives in Cambridgeshire has
been a disappointing performer for several years and has never
really recovered from the economic recession in the UK at which
time sales volume declined to potentially uneconomic levels. The
market for spiral and helical stairs is very fragmented. During the
period the company has successfully completed the single biggest
contract in Crescent's history in the City of London and yet the
business has failed to make sufficient headway to justify
continuing support from the parent whilst operating losses have
continued to be recorded. Crescent's losses have had a negative
impact on the Group's results for the six months to 31(st) December
2014. As a consequence and following receipt of planning permission
to redevelop the company's factory and offices in St Ives, the
Board embarked upon a strategic review of this subsidiary's
operations and decided as a post balance sheet event in March 2015
to close the business in an orderly manner thereby eliminating the
losses ahead of the new financial year from 1(st) July 2015. This
is a disappointing outcome for this quality brand and will lead to
an impairment provision as at 30(th) June 2015. However, the cash
impact of this provision is considered to be modest when compared
to the cost of continuing to fund losses at Crescent. The prospect
of being able to redevelop the property assets in St Ives offers
the Group significantly better returns than Crescent was considered
likely to produce and the eventual sale of the property will help
to generate further cash resources for investment in the Group's
core activities. In recent times Crescent has required an
increasing level of management resources from the parent that have
been disproportionate and difficult to justify. The elimination of
such distractions will release senior management in its efforts to
promote both ULVA and Fullflow in their international expansion
plans going forward.
Research & Development
As previously, the Group remains committed to be at the leading
edge of technical development in each of the fields in which we
operate. At Ulva there is an ongoing requirement to test and
certify each of our products in order to meet the stringent
specification requirements laid down by the oil and gas majors. The
pace of product development and innovation is likely to quicken
which we believe will set us apart from competition. At Fullflow
there is less scope for innovation but patents have now been taken
out on a fusion butt welding process which allows such joints to be
welded at height in predetermined circumstances. Innovation and
creative solutions have and will continue to be one of Plasflow's
key competences and this is likely to continue for the foreseeable
future.
Staff
There is a vibrancy to present market conditions which has
allowed the Group to invest heavily in the future. The efforts to
expand into ULVAGRP with the establishment of a brand new factory
in the Midlands with associated manufacturing plant and equipment
are key strategic developments as are the efforts within Fullflow
and Plasflow to gain market share and improve profitability.
To all our employees the Board offers its sincere gratitude for
the considerable efforts that are expended in the delivery of our
strategic plans to expand the Group's two principal brands on an
international basis.
Current Trading and Prospects
Trading in the second half of the year is likely to improve
against the performance in the first half save for the elimination
of the activities at Crescent which will require an impairment
provision on a once and for all basis as a "discontinued business".
The commencement of manufacture of ULVAGRP will take place in the
final two months of this financial year. Prospects for ULVA in
2015/2016 are very encouraging with expectations for the delivery
of a number of projects for which ULVAShield is specified likely to
accrue. In addition the introduction of ULVAGRP will begin as
eagerly anticipated by the market and will be highly complementary
to the existing range of ULVA products. Both at Fullflow and
Plasflow there are many challenges to face but market conditions
are favourable in each area of expertise. Both sales and
operating
profits are expected to advance in the short and longer
term.
As we enter 2015/2016 the investment programme will have been
completed and our focus will be entirely market facing as ULVA
embarks upon its expansion plans on a multinational basis. We
anticipate this will occur at much the same time as the Group
achieves its debt free status.
J A F Walker
Chairman
27(th) March 2015
Unaudited Consolidated Statement of Comprehensive Income
Six months Six months Year
ended 31.12.14 ended 31.12.13 ended
Unaudited Unaudited 30.06.14
GBP'000 GBP'000 Audited
GBP'000
Revenue 8,632 9,920 20,325
Cost of sales (5,055) (6,078) (12,358)
---------------- ---------------- ----------
Gross profit 3,577 3,842 7,967
Operating expenses (3,097) (2,979) (6,100)
---------------- ---------------- ----------
480 863 1,867
Profit attributable to associate 82 15 41
Exceptional operating expenses - (53) (63)
Amortisation of intangible assets
acquired through business combinations
net of deferred tax (83) (83) (165)
Share based payment (40) (40) (80)
---------------- ---------------- ----------
Operating profit 439 702 1,600
Financial costs (92) (78) (178)
---------------- ---------------- ----------
Profit on ordinary activities before
taxation 347 624 1,422
Income tax charge (69) (122) (246)
---------------- ---------------- ----------
Profit for the period 278 502 1,176
Total comprehensive income
Profit for the period and total comprehensive
income attributable to equity holders
of the company 278 502 1,176
---------------- ---------------- ----------
Earnings per share from continuing
and discontinued operations attributable
to the equity holders of the company
during the yearBasic earnings per share (pence) 0.14p 0.25p 0.59p
---------------- ---------------- ----------
Diluted earnings per share (pence) 0.14p 0.25p 0.25p
---------------- ---------------- ----------
Unaudited Consolidated Statement of Changes in Equity
Called Capital Re-valuation Retained Total
up share reserve reserve earnings
capital
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2013 1,016 142 229 13,557 14,944
Result for the
period - - - (1,003) (1,003)
Revaluation - - (19) - (19)
Dividend - - - (151) (151)
Share based payment - 59 - - 59
Purchase of treasury
shares - - - (9) (9)
At 30 June 2013 1,016 201 210 12,394 13,821
Result for the
period - - - 502 502
Share based payment - 40 - - 40
At 31 December
2013 1,016 241 210 12,896 14,363
Result for the
period - - - 674 674
Revaluation - - (6) - (6)
Dividend - - - (151) (151)
Share based payment - 40 - - 40
Purchase of treasury
shares - - - (43) (43)
---------- --------- ------------- ---------- --------
At 30 June 2014 1,016 281 204 13,376 14,877
Result for the
period - - - 278 278
Share based payment - 40 - - 40
At 31 December
2014 1,016 321 204 13,654 15,195
---------- --------- ------------- ---------- --------
Unaudited Consolidated Statement of Financial Position
As at As at As at
31.12.14 31.12.13 30.06.14
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 7,740 7,965 7,860
Property, plant and equipment 7,098 5,216 6,579
Trade and other receivables 226 297 246
Deferred tax assets 218 402 237
Investment 211 103 129
---------- ---------- ----------
15,493 13,983 15,051
---------- ---------- ----------
Current assets
Inventories 2,571 2,570 2,382
Trade and other receivables 4,396 6,117 5,793
----------
6,967 8,687 8,175
---------- ---------- ----------
Total assets 22,460 22,670 23,226
---------- ---------- ----------
Current liabilities
Trade and other payables (3,452) (4,484) (4,308)
Current tax liabilities (270) (135) (298)
Obligations under finance leases (359) (9) (361)
Bank loans and overdrafts (859) (1,411) (868)
---------- ---------- ----------
(4,940) (6,039) (5,835)
---------- ---------- ----------
Non-current liabilities
Bank loans - (281) -
Deferred tax liabilities (1,730) (1,983) (1,715)
Obligations under finance leases (595) (4) (799)
---------- ---------- ----------
(2,325) (2,268) (2,514)
---------- ---------- ----------
Total liabilities (7,265) (8,307) (8,349)
---------- ---------- ----------
NET ASSETS 15,195 14,363 14,877
========== ========== ==========
Capital and reserve
Called up share capital 1,016 1,016 1,016
Other reserves 321 241 281
Revaluation reserve 204 210 204
Retained earnings 13,654 12,896 13,376
---------- ---------- ----------
TOTAL EQUITY 15,195 14,363 14,877
========== ========== ==========
Unaudited Consolidated Statement of Cash Flows
Six months Six months Year ended
ended 31.12.14 ended 31.12.13 30.06.14
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit after tax 278 502 1,176
Adjustments for:
Net finance costs 92 78 178
Corporation tax (credit)/charge 69 122 303
Depreciation of property, plant
and equipment 184 71 242
Amortisation of intangible assets 120 118 237
Loss on disposal of plant and
equipment - - 5
---------------- ---------------- -----------
Operating cash flows before movement
in working capital 743 891 2,141
(Increase)/decrease in inventories (189) 669 857
Decrease/(increase) in receivables 1,417 (1,290) (915)
(Decrease)/increase in payables (866) 682 437
Interest paid (90) (80) (186)
Corporation tax paid (97) (94) (132)
---------------- ---------------- -----------
Net cash inflow from operating
activities 918 778 2,202
---------------- ---------------- -----------
Cash flow from investing activities
Purchase of property, plant and
equipment (703) (128) (1,721)
Purchase of intangible assets - - (14)
Proceeds from disposals of property,
plant and equipment - - 54
---------------- ---------------- -----------
Net cash outflow from investing
activities (703) (128) (1,681)
---------------- ---------------- -----------
Cash flow from financing activities
Dividend paid - - (151)
Bank loans repaid - (519) (1,341)
Purchase of treasury shares - - (43)
New hire purchase loans - - 1,198
Finance lease repayments, net (206) (8) (59)
---------------- ---------------- -----------
Net cash outflow from financing
activities (206) (527) (396)
---------------- ---------------- -----------
Net increase in cash and bank
overdrafts 9 123 125
Cash, cash equivalents and bank
overdrafts at
beginning of period (868) (993) (993)
---------------- ---------------- -----------
Cash, cash equivalents and bank
overdrafts at end of period (859) (870) (868)
================ ================ ===========
Notes to the Interim Report
1. Basis of Preparation
The Interim Financial Statements have been prepared using
accounting policies consistent with International Financial
Reporting Standards as adopted in the European Union and in
accordance with International Accounting Standards (IAS) 34 Interim
Financial Reporting.
The financial information for the six month periods ended 31
December 2014 and 31 December 2013 have not been audited by the
Group's auditors and does not constitute accounts within the
meaning of s240 of the Companies Act 2006. The financial
information for the year ended 30 June 2014 is an abridged version
of the Group's accounts which received an unqualified auditors'
report and did not contain a statement under s237(2) or (3) of the
Companies Act 2006 and have been filed with the Registrar of
Companies.
The same accounting policies, presentation and methods of
computation are followed in these interim financial statements as
were applied in the preparation of the Group's financial statements
for the year ended 30 June 2014 and which are expected to apply as
at 30 June 2015.
2. Taxation
Interim period income tax is accrued based on the estimated
average annual effective income tax rate. In reality this charge
will not fall to be paid in cash due to the incidence of Annual
Investment Allowances ("AIA") arising out of tax allowance on
capital expenditure during the period. As a result of timing
differences the payment of corporation tax is likely to be deferred
thereby requiring provision for deferred tax only.
3. Post Balance Sheet Event
In March 2015 following a strategic review and receipt of a
planning approval for the redevelopment of the buildings at the
freehold site in St Ives, Cambridgeshire a decision was taken to
cease trading at Crescent of Cambridge Limited and close the
business in an orderly manner. This will lead to an impairment
provision as at 30(th) June 2015 of which only a modest amount will
fall to be paid in cash. This will be reported in the full year
results to 30(th) June 2015 under the heading of "Discontinued
Businesses".
4. Segmental Reporting
Rainwater Metal staircases Polymer Corporate Total
management six months membrane six six
six months ended 31.12.14 six months months months ended
ended 31.12.14 ended 31.12.14 ended 31.12.14 31.12.14
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External revenues 4,675 1,283 2,674 - 8,632
Intergroup sales 745 - - - 745
---------------- ----------------- ---------------- ---------------- --------------
Total revenues 5,420 1,283 2,674 - 9,377
Cost of sales (3,718) (1,053) (1,029) - (5,800)
---------------- ----------------- ---------------- ---------------- --------------
Gross profit 1,702 230 1,645 - 3,577
Operating expenses (1,383) (367) (945) (402) (3,097)
---------------- ----------------- ---------------- ---------------- --------------
319 (137) 700 (402) 480
Profit attributable
to associate - - - 82 82
Amortisation of intangible
assets acquired through
business combinations
net of deferred tax - - - (83) (83)
Share based payment - - - (40) (40)
Intergroup royalty
(charge)/income - - (504) 504 -
Intergroup management
fees - - (114) 114 -
Intergroup rent - - - -
(charges)/income -
Operating profit/(loss) 319 (137) 82 175 439
Financial costs - - (27) (65) (92)
Intergroup financial
charges (11) - - 11 -
---------------- ----------------- ---------------- ---------------- --------------
Profit/(loss) on ordinary
activities before taxation 308 (137) 55 121 347
Income tax charge (62) 27 (11) (23) (69)
---------------- ----------------- ---------------- ---------------- --------------
Profit/(loss) for the
period attributable
to equity holders of
the company 246 (110) 44 98 278
================ ================= ================ ================ ==============
Rainwater Metal staircases Polymer Corporate Total
management six months membrane six six
six months ended 31.12.13 six months months months ended
ended 31.12.13 ended 31.12.13 ended 31.12.13 31.12.13
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue
External revenues 5,220 723 3,977 - 9,920
Intergroup sales 1,533 - - - 1,533
---------------- ----------------- ---------------- ---------------- --------------
Total revenues 6,753 723 3,977 - 11,453
Cost of sales (5,304) (436) (1,871) - (7,611)
---------------- ----------------- ---------------- ---------------- --------------
Gross profit 1,449 287 2,106 - 3,842
Operating expenses (1,353) (373) (837) (416) (2,979)
---------------- ----------------- ---------------- ---------------- --------------
96 (86) 1,269 (416) 863
Exceptional operating
expenses - - - 15 15
Amortisation of intangible
assets acquired through
business combinations
net of deferred tax (39) - - (14) (53)
Share based payment - - - (83) (83)
- - - (40) (40)
Intergroup royalty
(charge)/income - - (789) 789 -
Intergroup management
fees - - (114) 114 -
Intergroup rent
(charges)/income - - (36) 36 -
Operating profit/(loss) 57 (86) 330 401 702
Financial costs (1) - - (77) (78)
Intergroup financial
charges (12) - - 12 -
---------------- ----------------- ---------------- ---------------- --------------
Profit/(loss) on ordinary
activities before taxation 44 (86) 330 336 624
Income tax charge (9) 18 (65) (66) (122)
---------------- ----------------- ---------------- ---------------- --------------
Profit/(loss) for the
period attributable
to equity holders of
the company 35 (68) 265 270 502
================ ================= ================ ================ ==============
5. Income Tax Expense
Recognised in the income statement
Six months Six months Year
ended 31.12.14 ended 31.12.13 ended 30.06.14
Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000
Current tax expense
Current year - UK corporation
tax 67 77 262
Current year - overseas
tax - 25 41
Deferred tax movement 2 20 (57)
Total tax expense in income
statement 69 122 246
---------------- ---------------- ----------------
6. Earnings Per Share
Earnings per share is calculated on the basis of 195,530,006
shares (2013: 203,275,006) which is the weighted average of the
number of shares in issue during the period.
The diluted earnings per share is calculated on the basis of
197,710,837 shares (2013: 204,930,006) which is the weighted
average of the number of shares in issue during the period.
7. Copies of Half Yearly Report
Copies of the half yearly report are available to shareholders
electronically via the Group's website at
http://www.swpgroupplc.com or on request from the Group head office
at Bedford House, 1 Regal Lane, Soham, Ely, Cambridgeshire, CB7
5BA.
For further information or enquiries:
J.A.F Walker D.J. Pett
Chairman Finance Director
SWP Group plc SWP Group plc
Tel office: 01353 723270 Tel office: 01353 723270
Mobile: 07800 951251 Mobile: 07940 523135
Ranald McGregor-Smith Tim Feather/ Liam Gribben
Corporate Finance Advisors Nominated Adviser & Broker
Whitman Howard Limited WH Ireland Limited
Tel office: 020 7659 1250 Tel office: 020 7220 1666
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UNSNRVNAOUAR
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