TIDMUCG
RNS Number : 5614X
United Carpets Group plc
20 December 2019
20 December 2019
UNITED CARPETS GROUP PLC
(the "Group" or "Company" or "United Carpets")
Interim Results for the 6 month period ended 30 September
2019
United Carpets Group plc (LSE: UCG), the third largest chain of
specialist retail carpet and floor covering stores in the UK, today
announces its interim results for the 6 month period ended 30
September 2019.
Key points
-- Revenue for the period increased by 36.4% to GBP14.75m (2018: GBP10.81m)
-- Like for like sales* were +1.8%
-- Profit before tax and IFRS 16 adjustments** was GBP154,000 (2018: GBP121,000)
-- Earnings per share before IFRS 16 adjustments were 0.14p (2018: 0.09p)
-- Profit before tax after IFRS 16 adjustments was GBPnil (2018: loss before tax of GBP4,000)
-- Earnings per share after IFRS 16 adjustments were -0.01p (2018: -0.03p)
-- Interim dividend maintained at 0.135p per share (2018: 0.135p) payable 17 January 2020
-- Net funds*** were GBP1.09m (2018: GBP2.01m)
-- LFL sales for the 11 weeks since the period end were -3.5%
* Like for like sales are defined in the financial review
** IFRS 16 adjustments are explained in note 1
*** Net funds comprise cash and cash equivalents less borrowings
(hire purchase liabilities)
Paul Eyre, Chief Executive, said:
"A small improvement in profit before tax and IFRS 16
adjustments is a satisfactory performance in a challenging market
environment with consumer confidence constrained by political
uncertainty. Nevertheless, the Group generated a significant
increase in revenues, primarily driven by a small increase in the
average number of stores trading compared to the prior period and
the Group's fledgling instalment payment model, a new business
channel for the Group with the potential to become an important
future profit centre. Importantly, the fundamentals of the Group
remain sound. We have a strong network of mostly franchised stores,
offering an excellent range of good quality, great value products
making us well placed to benefit from any uptick in the market
environment."
Enquiries:
United Carpets Group plc
Paul Eyre, Chief Executive
Ian Bowness, Finance Director 01709 732 666
Cantor Fitzgerald Europe (NOMAD and Broker)
Rick Thompson
Michael Boot 020 7894 7000
Novella Communications Limited
Tim Robertson
Fergus Young 020 3151 7008
Chairman's Statement
Overview
The retail environment continues to be challenging and, combined
with an uninspiring housing market, made it a difficult period in
which to operate. Given this backdrop, we believe the results
achieved for the 6 months to 30 September 2019 are satisfactory
being in line with management targets for the financial year and
showing a small improvement in profit before tax and IFRS 16
adjustments compared to the same period in the prior year.
During the period under review, the Company continued to focus
on implementing good retail practices, expanding the product ranges
on offer across the store network and providing strong customer
services levels. Flooring ranges have been refreshed, providing new
options and keeping abreast of up and coming trends with a number
of new lines being successfully introduced.
The significant rise in online shopping has impacted upon all
areas of the store-led retail market and the same is true of the
flooring and beds sector. However, as with other larger ticket
retail items, there is a greater desire amongst consumers to visit
and purchase in-store providing some degree of protection to our
market place.
Looking ahead, if 2020 sees an improvement in the political and
economic outlook for the UK leading to a rally in consumer
sentiment, then United Carpets is well placed to benefit.
Financial review
As previously reported (and explained more fully in note 1),
from 1 April 2019 the Group has adopted IFRS 16 'Leases' using the
full retrospective approach. The adjustments included in this
Interim Report are in line with the estimates provided in the
Annual Report for the year ended 31 March 2019, reducing profit
before tax in the 6 month period ended 30 September 2019 by
GBP154,000 (6 month period ended 30 September 2018: GBP125,000,
year ended 31 March 2019: GBP319,000).
6 month 6 month Year
period ended period ended ended
30 September 30 September 31 March
2019 2018 2019
GBP000 GBP000 GBP000
Profit before tax and IFRS 16 adjustments 154 121 595
IFRS 16 adjustments (154) (125) (319)
-------------- -------------- ----------
(Loss)/profit before tax after IFRS
16 adjustments - (4) 276
-------------- -------------- ----------
Revenue, which as in previous years includes marketing and
rental costs incurred by the Group and recharged to franchisees,
was GBP14.75m (2018: GBP10.81m). The increase in revenues came
primarily from the ongoing development of the recently introduced
instalment payment channel, 2 new stores opened in the 6 months to
30 September 2019 offset by a closure, a full period's trading from
stores opened in the prior year and a modest increase in like for
like sales in the period.
Like for like sales across the whole of the network (based on
stores that have traded throughout both the period under review and
the corresponding period in the prior year and thus excluding
stores that opened or stores that closed during either period)
increased by 1.8%, a reasonable performance albeit against
relatively weak comparatives from the previous summer period.
Gross margin was 63.4% compared to 62.3% in the same period in
2018. Warehousing gross margins improved as a result of actions
taken during the prior year to improve overall profitability. This,
together with the inherently higher margin of the instalment
payment channel, more than offset the "mix" impact from an
increased proportion of total revenue being derived from corporate
stores and new business channels with a corresponding reduction in
the proportion of total revenue from franchise related income.
Combined distribution costs and administrative expenses
increased by GBP1.83m from GBP6.17m in the prior period to GBP8.0m,
but reduced from 57.1% of revenue to 54.3% reflecting:
- substantial operating costs associated with the new instalment payment channel,
- increased costs from non like for like corporate stores opened
during the period and in the prior year,
- increased property, plant and equipment depreciation (non-cash
charge against profit) as a result of controlled expansion and
modest ongoing refurbishment of the existing store estate, and
- an increase in the charge for the potential cost associated with vacating a small number of underperforming stores.
The instalment payment channel suffers an inherently greater
risk of default than traditional retailing and an impairment charge
of GBP0.77m (2018: GBP0.09m) was made during the year against these
receivables as this business channel was rapidly expanded. The
level of charge incurred is broadly in line with the expected
levels of default in our original planning model. A further
impairment charge of GBP0.11m (2018: GBPnil) was made during the
year against receivables, reflecting the impact of the prevailing
market environment on the franchise network as the Group continues
to support its franchisees.
Before the IFRS 16 adjustments, operating profit was GBP154,000
(2018: GBP118,000) and profit before tax was GBP154,000 (2018:
GBP121,000). As a result, earnings per share before the IFRS 16
adjustments were 0.14p (2018: 0.09p).
After the IFRS 16 adjustments, operating profit was GBP466,000
(2018: GBP487,000) and profit before tax was GBPnil (2018:
operating loss before tax of GBP8,000). As a result, basic earnings
per share were -0.01p (2018: -0.03p).
The statement of financial position included net funds of
GBP1.09m as at 30 September 2019 (2018: GBP2.01m).
Dividend
The Board is pleased to announce an interim dividend of 0.135
pence per share to be paid on 17 January 2020 to all shareholders
on the register at the close of business on 3 January 2020. The
ex-dividend date will be on 2 January 2020.
Operational review
At 30 September 2019, there were 60 stores of which 48 were
franchised and 12 were corporate stores. During the period under
review, the Group opened a flagship corporate store in Stockton on
Tees operating from a higher profile retail park and another
corporate store in Failsworth principally servicing the instalment
payment channel in the Manchester region. In addition, a small
corporate store in Bristol was closed following a short,
unsuccessful trial. Since the period end, a corporate store has
been transferred, within the Group, to an experienced franchisee
whose existing store lease expires during early 2020 and where the
landlord has indicated that they do not wish to renew.
As previously stated, expansion of the store network is focused
on finding the right sites rather than just seeking to increase the
size of the store network. The Group is always looking for
locations where a United Carpets store might excel and, as
importantly, matching those sites with potential franchisees. As is
the case with the new store in Stockton on Tees, the Group is also
open to taking on larger sites in higher profile retail parks with
rents above average for the Group but offering higher potential
returns.
Challenging and highly competitive market environments increase
the importance of ensuring the Group's marketing activities are
effective. Whilst the Group continues to deploy advertising
campaigns across radio, television and print, the
weighting and timing of these campaigns is under constant review
and analysis. Following a review of marketing spend directed at
generating online sales, investment has been switched to increasing
in-house marketing expertise with the initial result being to
significantly reduce costs whilst striving to minimise the impact
on revenues.
Franchising and Retail
Floor coverings are the Group's primary driver of sales
(predominantly carpet, laminate and vinyl floorings) through both
franchised stores and the Group's own corporate stores. In the
period under review, the portfolio performed well given the adverse
market conditions with like for like sales up 2.4%. New product
ranges and lines were successfully introduced to refresh customer
options such as water-resistant laminate ranges which have been
well received by customers.
Bed sales are an important part of the United Carpets retail
proposition with over 85% of stores now offering beds alongside
flooring ranges. Like for like sales in the period were 5.0% lower
than the same period in the previous year, a disappointing
performance reflecting the competitive environment which is not
expected to improve markedly in the short term. Bed sales have, in
the past, been more volatile but they are a natural combination
with flooring and the Group will continue to look to expand the
ranges offered and the number of stores from which they are
sold.
Interest free credit continues to be a growing and important
part of the business although not yet achieving the levels of
penetration reported by some of our competitors. It is marketed
online and in store and is carefully managed to ensure customer
suitability for the product. The offer continues to be popular and
tends to lead to substantially higher average transaction values,
representing a significant opportunity as we increase our focus in
this area.
Instalment payment channel
Following earlier trials, the instalment payment model was
rapidly expanded during the period under review and is believed to
have the potential to be a significant future profit centre.
Targeting a different customer base and offering a separate,
limited range of products, this service is available on an interest
free pay per week basis in contrast to the traditional monthly
interest free credit offer referred to above. While profitable, the
costs associated with establishing the service within the Group are
still relatively high, however, there is the potential for this to
be a valuable new business channel for the Group in the near to
medium term.
Warehousing
Our in-house cutting operation supports the whole network
providing a quick, efficient cutting and delivery service enabling
our franchisees to offer attractive retail price points with good
margins. To increase volume and accuracy, the Group has invested in
a new cutting and sortation system. This valuable addition to the
distribution centre is currently being installed and is expected to
be operational in the final quarter of our financial year. The
Warehousing division is seen as a key element of service to the
store network and, whilst it is not intended to generate a normal,
commercial return, a modest ongoing profit is the target.
Property
The Property division leases properties from third parties and
sublets those properties to the store network.
People
Once again, on behalf of the Board, I would like to thank our
franchisees, supplier partners, employees and everyone connected
with the Group for their contribution in the first 6 months of this
year and for their continued efforts to ensure a successful outcome
for the year as a whole.
Outlook
Demand for our good quality, great value flooring and beds will
continue to support this business and its ability to deliver
reasonable returns over the long-term. For the business to flourish
requires a positive market environment which has not been the case
for some time alongside the ongoing political uncertainties which
has unsettled consumer confidence and also the housing market. In
the face of further Brexit uncertainty and a snap General Election,
the important trading period since 30 September has proven to be
more difficult with like for like sales for the 11 weeks since the
period end 3.5% down. While the Board remain confident in the
United Carpets model, the outcome for the full year could be
significantly influenced by the ultimate conclusion to Brexit and
also in the event of any prolonged period of significant adverse
weather conditions. The Board therefore remains cautious over the
outcome for the full year.
Importantly, the fundamentals of the business in terms of being
virtually debt free, operating from a stable store network, under a
well-known and trusted brand means that the business remains well
placed to benefit from any potential upturn.
Peter Cowgill
Chairman
20 December 2019
Consolidated Statement of Comprehensive Income
For the 6 month period ended 30 September 2019
Pro forma Impact
IAS 17 of
6 month IFRS 16
period 6 month 6 month
ended period period 6 month Year
30 September ended ended period ended ended
2019 30 September 30 September 30 September 31 March
Unaudited 2019 2019 2018 2019
Note Unaudited Unaudited Unaudited Audited
GBP'000 Restated Restated
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 2 14,749 - 14,749 10,807 23,983
Cost of sales (5,402) - (5,402) (4,076) (9,203)
Gross profit 9,347 - 9,347 6,731 14,780
Distribution costs (304) - (304) (195) (453)
Administrative expenses (8,011) 312 (7,699) (5,973) (12,517)
Impairment of receivables (878) - (878) (91) (579)
Other operating
income - - - 15 -
Operating profit 154 312 466 487 1,231
Financial income 4 - 4 5 12
Financial expenses (4) (466) (470) (496) (967)
Profit/(loss) before
tax 154 (154) - (4) 276
Income tax (expense)/credit 3 (37) 29 (8) (21) (116)
Profit/(loss) for
the period* 2 117 (125) (8) (25) 160
Earnings per share 5
- Basic (pence per
share) 0.14p (0.15)p (0.01)p (0.03)p 0.20p
- Diluted (pence
per share) 0.14p (0.15)p (0.01)p (0.03)p 0.20p
*All activities relate to continuing operations and are
attributable to the owners of the parent.
There were no other recognized gains and losses for the current
period other than shown above and therefore no separate Statement
of Other Comprehensive Income has been presented.
Consolidated Statement of Financial Position
At 30 September 2019
At At At
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
Restated Restated
Note GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 108 136 109
Right-of-use assets 1 18,338 18,839 18,830
Property, plant and equipment 4 3,022 2,544 2,846
Investment property 91 94 93
Deferred tax assets 1 318 310 350
21,877 21,923 22,228
Current assets
Inventories 2,201 2,053 2,146
Trade and other receivables 6,153 2,985 3,663
Current tax receivable 38 62 13
Cash and cash equivalents 1,215 2,064 2,259
9,607 7,164 8,081
Total assets 31,484 29,087 30,309
Capital and reserves
Issued capital 814 814 814
Retained earnings 2,880 3,045 3,120
Total equity attributable
to owners of the parent 1 3,694 3,859 3,934
Non-current liabilities
Lease liabilities 1 17,071 17,313 17,470
Borrowings - hire purchase
liabilities 65 35 96
Trade and other payables 1 281 384 320
17,417 17,732 17,886
Current liabilities
Lease liabilities 1 3,473 3,221 3,334
Borrowings - hire purchase
liabilities 61 18 62
Trade and other payables 6,688 4,106 4,942
Provisions 151 151 151
10,373 7,496 8,489
Total liabilities 27,790 25,228 26,375
Total equity and liabilities 31,484 29,087 30,309
Consolidated Statement of Changes in Equity
For the 6 month period ended 30 September 2019
Total equity
attributable
Retained to owners
Issued earnings of the parent
capital Restated Restated
Note GBP'000 GBP'000 GBP'000
At 31
March
2018 814 3,302 4,116
Profit for
the
period - (25) (25)
Equity 6 - (232) (232)
dividends
At 30 814 3,045 3,859
September
2018
Profit for
the
period - 185 185
Equity
dividends 6 - (110) (110)
At 31
March
2019 814 3,120 3,934
Loss for
the
period - (8) (8)
Equity 6 - (232) (232)
dividends
At 30
September
2019 814 2,880 3,694
Consolidated Statement of Cash Flows
For the 6 month period ended 30 September 2019
6 month 6 month Year
period ended period ended ended
30 September 30 September 31 March
2019 2018 2019
Unaudited Unaudited Audited
Restated Restated
Note GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 7 709 1,068 3,131
Income tax paid (1) (189) (275)
Net cash flows from operating activities 708 879 2,856
Cash flows from investing activities
Acquisition of intangible assets (18) (11) (15)
Acquisition of property, plant and
equipment (397) (206) (516)
Proceeds from sale of property, plant
and equipment - 8 39
Interest received 4 5 12
Net cash flows from investing activities (411) (204) (480)
Cash flows from financing activities
Payment of lease liabilities (1,305) (1,230) (2,350)
Payment of hire purchase liabilities (32) (19) (60)
Interest paid (4) (2) (5)
Equity dividends paid 6 - - (342)
Net cash flows from financing activities (1,341) (1,251) (2,757)
Increase in cash and cash equivalents
in the period (1,044) (576) (381)
Cash and cash equivalents at the
start of the period 2,259 2,640 2,640
Cash and cash equivalents at the
end of the period 1,215 2,064 2,259
Notes to the Condensed Consolidated Interim Financial
Statements
1. Basis of preparation
United Carpets Group plc (the "Company") is a public limited
company incorporated in England and Wales. The Condensed
Consolidated Interim Financial Statements of the Company for the 6
month period ended 30 September 2019 comprise the Company and its
subsidiary undertakings (together referred to as the "Group").
The Group financial statements for the year ended 31 March 2019
were prepared in accordance with International Financial Reporting
Standards and International Financial Reporting Interpretations
Committee pronouncements as adopted by the European Union, approved
by the Board of Directors on 23 August 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(2)
and 498(3) of the Companies Act 2006. These Condensed Consolidated
Interim Financial Statements do not comprise statutory accounts
within the meaning of section 434 of the Companies Act 2006. These
Condensed Consolidated Interim Financial Statements for the 6 month
period ended 30 September 2019 are unaudited.
The accounting policies applied are consistent with those of the
financial statements for the year ended 31 March 2019 and those
that are expected to be adopted in the financial statements for the
year ending 31 March 2020.
IFRS 16 'Leases'
IFRS 16 'Leases' has been applied in preparing these financial
statements for the first time. IFRS 16 'Leases' replaces IAS 17
'Leases' and for lessees eliminates the classifications of
operating leases and finance leases. Subject to exceptions, a
right-of-use asset is capitalised in the statement of financial
position, measured at the present value of the unavoidable future
lease payments to be made over the lease term. The exceptions
relate to short-term leases of 12 months or less and leases of
low-value assets (such as personal computers and small office
furniture) where an accounting policy choice exists whereby either
a right-of-use asset is recognised or lease payments are expensed
to profit or loss as incurred. A liability corresponding to the
capitalised lease is recognised, adjusted for lease prepayments,
lease incentives received, initial direct costs incurred and an
estimate of any future restoration, removal or dismantling costs.
Straight-line operating lease expense recognition is replaced with
a depreciation charge for the leased asset (included in operating
costs) and an interest expense on the recognised lease liability
(included in finance costs).
Under IFRS 16, the Group has recognised right-of-use assets of
GBP18,338,000, capitalised lease liabilities of GBP20,544,000 and
released a lease incentive accrual of GBP342,000 which in total,
after an associated tax credit of GBP326,000, has reduced net
assets by GBP1,538,000. The Group has recognised financial expenses
on the lease liabilities of GBP466,000, reversed lease costs of
GBP1,383,000 and recognised depreciation on the right-of-use assets
of GBP1,071,000. The net impact on the Consolidated Statement of
Comprehensive Income for the 6 month period ended 30 September 2019
being a reduction in profit before tax of GBP154,000. The following
tables summarise the impacts of adopting IFRS 16 on the Group's
Consolidated Statement of Financial Position at 30 September 2019
and its Consolidated Statement of Comprehensive Income for the 6
month period ended 30 September 2019.
Impact on the Consolidated Statement of Financial Position at 30
September 2019
Amounts
without
adoption
of IFRS
As reported Adjustments 16
GBP000 GBP000 GBP000
Non-current assets
Right-of-use assets 18,338 (18,338) -
Deferred tax assets 318 (318) -
Non-current liabilities
Lease liabilities 17,071 (17,071) -
Trade and other payables 281 342 623
Deferred tax liabilities - 8 8
Current liabilities
Lease liabilities 3,473 (3,473) -
Total
equity
attributable
to
owners
of
the
parent
Retained
earnings 3,694 1,538 5,232
-------------- -------------- ----------
Impact on the Consolidated Statement of Comprehensive Income for
the 6 month period ended 30 September 2019
Amounts
without
adoption
of IFRS
As reported Adjustments 16
GBP000 GBP000 GBP000
Administrative
expenses (7,699) (312) (8,011)
Financial
expenses (470) 466 (4)
-------------- -------------- ----------
Reconciliation of total equity attributable to owners of the
parent
At At At
31 March 30 September 31 March
2018 2018 2019
GBP000 GBP000 GBP000
Total
equity
attributable
to
owners
of
the
parent
as
previously
reported 5,271 5,115 5,347
IFRS
16
adjustments (1,155) (1,256) (1,413)
Equity
as
reported 4,116 3,859 3,934
Reconciliation of (loss)/profit for the financial period
6 month Year
period ended ended
30 September 31 March
2018 2019
GBP000 GBP000
Profit
for
the
period
as
previously
reported 76 418
IFRS
16
adjustments (101) (258)
(Loss)/profit
for
the
period
as
reported (25) 160
2. Segment reporting
Segment information is presented in the Condensed Consolidated
Interim Financial Statements in respect of the Group's business
segments, which are the primary basis of segment reporting. The
business segment reporting format reflects the Group's management
and internal reporting structure.
Franchising and Retail is the income that the Group receives
from its franchise activities together with the results of its
corporate stores. The Instalment Payment Channel offers customers
fixed, weekly payments with no hidden costs or extra charges.
Warehousing reflects the results of the Group's in-house cutting
operation which services the franchised and corporate stores and
some third parties. The Property division leases properties from
third parties and sublets those properties to the store
network.
Inter-segment pricing is determined on an arm's length basis.
Segment results include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis.
Franchising Instalment
and Retail Payment Channel Warehousing Property Consolidated
6 month
period
ended 6 month
30 period ended
September 30 September
2019 2018 2019 2018 2019 2018 2019 2018 2019 2018
Restated Restated Restated
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Gross sales 7,933 6,079 2,238 - 5,609 4,392 1,723 1,592 17,503 12,063
Inter-segment
sales - - (71) - (2,113) (851) (570) (405) (2,754) (1,256)
Segment
revenue 7,933 6,079 2,167 - 3.496 3,541 1,153 1,187 14,749 10,807
Segment
results (15) 104 78 - 117 68 257 255 437 427
Unallocated
income 29 45
Other
operating
income - 15
Operating
profit 466 487
Financial
income 4 5
Financial
expenses (470) (496)
Income tax
expense (8) (21)
Loss for the
period (8) (25)
3. Income tax expense/(credit)
(a) Analysis of charge for the period
6 month Year
6 month period ended ended
period ended 30 September 31 March
30 September 2018 2019
2019 Restated Restated
GBP'000 GBP'000 GBP'000
Current tax:
Current year - (4) 87
Adjustment in respect of prior periods (24) - 44
_______ _______ _______
(24) (4) 131
_______ _______ _______
Deferred tax:
Current year 32 9 (22)
Adjustment in respect of prior periods - 16 7
_______ _______ _______
32 25 (15)
_______ _______ _______
Total income tax expense recognised
in the current period 8 21 116
_______ _______ _______
(b) Reconciliation of total tax charge for the period
The tax charge for the period differs from the standard rate of
corporation tax in the UK of 19% (2018: 19%). The differences are
explained below:
6 month Year
6 month period ended ended
period ended 30 September 31 March
30 September 2018 2019
2019 Restated Restated
GBP'000 GBP'000 GBP'000
(Loss)/profit before tax - (4) 276
_______ _______ _______
Profit before tax multiplied by
the rate of corporation tax in the
UK of 19% (2018: 19%) - (1) 52
Effect of:
Expenses not deductible for tax
purposes 5 6 8
Adjustments in respect of prior years (24) 16 51
Other 27 - 5
_______ _______ _______
Total tax 8 21 116
_______ _______ _______
4. Property, plant and equipment
Fixtures,
fittings
Short and
Freehold leasehold office Motor
Group property property equipment vehicles Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 31 March
2019 888 922 1,706 285 3,801
Additions - 77 320 - 397
Disposals - (18) (32) - (50)
(___________) (___________) (___________) (___________) (___________)
At 30
September
2019 888 981 1,994 285 4,148
(___________) (___________) (___________) (___________) (___________)
Depreciation
At 31 March
2019 66 252 541 96 955
Charge for
the year 11 48 87 27 173
Eliminated on
disposal - (1) (1) - (2)
(___________) (___________) (___________) (___________) (___________)
At 30
September
2019 77 299 627 123 1,126
(___________) (___________) (___________) (___________) (___________)
Net book
value
At 30
September
2019 811 682 1,367 162 3,022
(___________) (___________) (___________) (___________) (___________)
At 31 March
2019 822 670 1,165 189 2,846
(___________) (___________) (___________) (___________) (___________)
5. Earnings per share
Basic earnings per share
The calculation of basic earnings per share for the 6 month
period ended 30 September 2019 was based on the loss attributable
to ordinary shareholders of GBP8,000 (6 month period ended 30
September 2018: loss of GBP25,000, year ended 31 March 2019: profit
of GBP160,000) and a weighted average number of ordinary shares
outstanding of 81,400,000 for each period.
Diluted earnings per share
The calculation of diluted earnings per share for the 6 month
period ended 30 September 2019 was based on the loss attributable
to ordinary shareholders of GBP8,000 (6 month period ended 30
September 2018: loss of GBP25,000, year ended 31 March 2019: profit
of GBP160,000) and a weighted average number of ordinary shares
outstanding and potential ordinary shares during the 6 month period
ended 30 September 2019 of 81,400,000 (6 month period ended 30
September 2018: 81,400,000, year ended 31 March 2019:
81,400,000).
6. Equity dividends
6 month 6 month Year
period ended period ended ended
30 September 30 September 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
Final dividend in respect of 2017/18
approved during the period of 0.285p
per ordinary share, paid on 11 October
2018 - 232 232
Interim dividend in respect of 2018/19
of 0.135p per ordinary share - - 110
Final dividend in respect of 2018/19
approved during the period of 0.285p
per ordinary share, paid on 10 October
2019 232
232 232 342
An interim dividend in respect of 2019/20 of GBP110,000 (2018:
GBP110,000) being 0.135p per share (2018: 0.135p per share) has
been declared but not provided in these financial statements.
7. Cash generated from operations
Reconciliation of the result for the period to cash generated
from operations:
6 month 6 month Year
period ended period ended ended
30 September 30 September 31 March
2019 2018 2019
Restated Restated
GBP'000 GBP'000 GBP'000
(Loss)/profit before tax - (4) 276
Depreciation and other non-cash items:
Amortisation of intangible assets 19 18 33
Depreciation of right-of-use assets 1,071 946 1,877
Depreciation of property, plant and
equipment 173 130 292
Depreciation of investment property 2 1 2
Loss/(profit) on disposal of property,
plant and equipment 48 (8) (31)
Changes in working capital:
Increase in inventories (55) (163) (256)
Increase in trade and other receivables (2,490) (743) (1,421)
Increase in trade and other payables 1,475 400 1,404
Financial income (4) (5) (12)
Financial expenses 470 496 967
Cash generated from operations 709 1,068 3,131
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 BRBDDIXBBGCC
(END) Dow Jones Newswires
December 20, 2019 02:00 ET (07:00 GMT)
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