TIDMVP.
RNS Number : 5376I
Vp PLC
27 November 2018
Press Release 27 November 2018
Vp plc
('Vp' or the 'Group')
Interim Results
Vp plc, the equipment rental specialist, today announces its
Interim Results for the six months ended 30 September 2018 ('H1
2019' or the 'period').
Highlights
-- Profit before tax and amortisation increased 22% to GBP25.9
million (H1 2018: GBP21.2 million)
-- Revenues up by 42% to GBP193.2 million (H1 2018: GBP136.0
million)
-- EPS, pre amortisation, increased 18% to 52.3 pence per
share (H1 2018: 44.2 pence per share)
-- Interim dividend increased by 21% to 8.2 pence per share
(H1 2018: 6.8 pence per share)
-- Return on average capital employed 14.5% (H1 2018: 16.0%)
-- EBITDA increased by 25% to GBP51.6 million (H1 2018: GBP41.1million)
-- Capital investment in rental fleet up 13% at GBP36.7 million
(H1 2018: GBP32.5 million)
-- Statutory profit before tax of GBP23.9 million (H1 2018:
GBP20.3 million) and statutory earnings per share of 48.3
pence (H1 2018: 42.5 pence)
Jeremy Pilkington, Chairman of Vp plc, commented: "The Group has
produced yet another excellent set of results with revenues,
profits and earnings per share all significantly ahead. Both our UK
and International Divisions have performed strongly with most of
our business units busy supporting stable end markets. In the UK
Division, whilst Brexit continues to be a distraction, day to day
activity seems to be continuing largely unaffected.
With the benefit of a strong first half, which includes an in
line contribution from Brandon Hire, we look forward to the
remainder of the year, and beyond, with every confidence."
- Ends -
For further information:
Vp plc
Jeremy Pilkington, Chairman Tel: +44 (0) 1423 533
400
Neil Stothard, Chief Executive www.vpplc.com
Allison Bainbridge, Group Finance Director
Media enquiries:
Buchanan
Henry Harrison-Topham / Jamie Hooper Tel: +44 (0) 20 7466
/ Maddie Seacombe 5000
Vp@buchanan.uk.com www.buchanan.uk.com
Notes on alternative performance measures:
-- All performance measures stated as before amortisation are
also before impairment of intangibles.
-- Basic earnings per share pre amortisation and exceptionals is
reconciled to basic earnings per share in note 7.
-- Profit before tax, amortisation and exceptionals is
reconciled to profit before tax in the Income Statement.
-- Return on average capital employed is based on profit before
tax, interest, amortisation and exceptionals divided by average
capital employed on a monthly basis using the management accounts.
Profit before tax, interest, amortisation and exceptionals is
reconciled to profit before interest and tax in the Income
Statement.
CHAIRMAN'S STATEMENT
I am very pleased to report further significant progress for the
Group in the six month period to 30 September 2018.
Profit before tax and amortisation rose by 22% to GBP25.9
million (H1 2018: GBP21.2 million) on revenues that were 42% higher
at GBP193.2 million (H1 2018: GBP136.0 million). These results
include a maiden first half year contribution from Brandon Hire
('Brandon') which the Group acquired in November 2017. Earnings per
share pre-amortisation increased by 18% to 52.3 pence per share (H1
2018: 44.2 pence per share). As expected, return on average capital
employed ('ROACE') softened slightly, to a still extremely
satisfactory 14.5% (H1 2018: 16.0%) reflecting the temporary effect
of the Brandon acquisition. Excluding this acquisition, the
underlying ROACE remained above 16%.
Capital investment in fleet rose to GBP36.7 million (H1 2018:
GBP32.5 million). Borrowings at the period end stood at GBP188.2
million (31 March 2018: GBP179.2 million). EBITDA increased to
GBP51.6 million (H1 2018: GBP41.1 million) demonstrating the
quality of the Group's cash flow.
In view of this excellent set of results, the Board is pleased
to declare a 21% increase in the interim dividend to 8.2 pence per
share (H1 2018: 6.8 pence per share) payable on 11 January 2019 to
shareholders on the register as at 7 December 2018.
UK Division
The UK Division delivered a strong first half with operating
profits before amortisation 21% ahead at GBP26.9 million (H1 2018:
GBP22.2 million) on revenues up 46% at GBP175.3 million (H1 2018:
GBP120.3 million), including a GBP39.4 million contribution from
Brandon.
The division experienced continued strong demand from its rail,
transmission and water infrastructure markets benefitting our
Groundforce, TPA and Torrent Trackside businesses. Residential
construction remained supportive and enhanced by significant
customer wins for UK Forks. The general UK construction market
remained broadly supportive to our specialist tool hire
division.
Twelve months after the acquisition we are pleased to report
good progress at Brandon Hire, which is now integrated with the
Hire Station tool hire business and is performing in line with the
Board's expectations. We expect full integration to be completed
within 12 months.
International Division
Operating profits before amortisation moved ahead in the period
to GBP1.3 million (H1 2018: GBP0.3 million) on revenues ahead by
14% at GBP17.9 million (H1 2018: GBP15.7 million).
These results reflect a further good performance from TR
including encouraging progress from the newer locations in Malaysia
and Singapore.
Airpac Bukom benefitted from marginally improved activity in the
oil and gas market including a good contribution from our European
operations. Several LNG contracts in Australia completed in the
period and we have had some success in replacing this work with
alternative revenue streams across the Asia Pacific region.
Outlook
The Group has produced yet another excellent set of results with
revenues, profits and earnings per share all significantly ahead.
Both our UK and International Divisions have performed strongly
with most of our business units busy supporting stable end markets.
In the UK Division, whilst Brexit continues to be a distraction,
day to day activity seems to be continuing largely unaffected.
With the benefit of a strong first half, which includes an in
line contribution from Brandon Hire, we look forward to the
remainder of the year, and beyond, with every confidence.
Jeremy Pilkington
Chairman
27 November 2018
Condensed Consolidated Income Statement
For the period ended 30 September 2018
Note Six months Six months Full year
to to to
30 Sep 2018 30 Sep 2017 31 Mar 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Revenue 3 193,211 135,992 303,639
Cost of sales (146,101) (98,083) (229,477)
------------- ------------- -------------
Gross profit 47,110 37,909 74,162
Administrative expenses (20,917) (16,315) (39,927)
------------- ------------- -------------
Operating profit 3 26,193 21,594 34,235
Net financial expenses (2,325) (1,284) (3,421)
------------- ------------- -------------
Profit before exceptionals,
amortisation and taxation 25,853 21,155 40,597
Amortisation and impairment (1,985) (845) (8,101)
Exceptional items - - (1,682)
Profit before taxation 23,868 20,310 30,814
Income tax expense 4 (4,752) (3,602) (6,448)
------------- ------------- -------------
Net profit for the period 19,116 16,708 24,366
============= ============= =============
Basic earnings per share 7 48.26p 42.49p 61.72p
Diluted earnings per share 7 46.38p 41.21p 60.95p
Dividend per share 8 8.20p 6.80p 26.00p
Condensed Consolidated Statement of Comprehensive Income
For the period ended 30 September 2018
Six months Six months Full year
to to to
30 Sep 2018 30 Sep 2017 31 Mar
2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Profit for the period 19,116 16,708 24,366
Other comprehensive income:
Items that will not be reclassified
to profit or loss
Actuarial gains on defined benefit
pension scheme - - 275
Tax on items taken direct to equity - - (50)
Impact of tax rate change - - (65)
Items that may be subsequently
reclassified to profit or loss
Foreign exchange translation difference 667 (264) (900)
Effective portion of changes in
fair value of cash flow hedges (194) 356 444
Other comprehensive income/(expense) 473 92 (296)
Total comprehensive income for
the period 19,589 16,800 24,070
------------ ------------ ----------
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 September 2018
Six months Six months Full year
to to to
30 Sep 2018 30 Sep 2017 31 Mar 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Total comprehensive income for
the period 19,589 16,800 24,070
Tax movements to equity 1,060 172 444
Impact of tax rate change - (20) (25)
Share option charge in the period 1,339 1,158 2,446
Net movement relating to shares
held by Vp Employee Trust (2,029) (920) (822)
Dividends to shareholders (7,606) (6,286) (8,983)
Change in equity during the period 12,353 10,904 17,130
Equity at the start of the period 154,446 137,316 137,316
Equity at the end of the period 166,799 148,220 154,446
------------ ------------ ------------
There were no movements in issued share capital, the capital
redemption reserve or share premium in the reported periods.
Condensed Consolidated Balance Sheet
At 30 September 2018
Note 30 Sep 2018 31 Mar 30 Sep 2017
2018
(unaudited) (audited) (unaudited)
GBP000 GBP000 GBP000
Non-current assets
Property, plant and equipment 5 251,882 241,938 211,805
Goodwill 6 60,546 60,355 41,380
Intangible assets 6 29,167 31,122 8,689
Employee benefits 2,230 2,230 1,928
------------ ------------ ------------
Total non-current assets 343,825 335,645 263,802
------------ ------------ ------------
Current assets
Inventories 8,017 8,662 6,328
Trade and other receivables 82,377 70,915 57,040
Cash and cash equivalents 9 15,508 18,194 17,129
Total current assets 105,902 97,771 80,497
------------ ------------ ------------
Total assets 449,727 433,416 344,299
------------ ------------ ------------
Current liabilities
Interest bearing loans and
borrowings 9 (7,784) (10,218) (8,924)
Income tax payable (3,447) (2,365) (3,001)
Trade and other payables (67,238) (69,899) (53,892)
------------ ------------ ------------
Total current liabilities (78,469) (82,482) (65,817)
------------ ------------ ------------
Non-current liabilities
Interest bearing loans and
borrowings 9 (195,960) (187,148) (123,596)
Deferred tax liabilities (8,499) (9,340) (6,666)
------------ ------------ ------------
Total non-current liabilities (204,459) (196,488) (130,262)
------------ ------------ ------------
Total liabilities (282,928) (278,970) (196,079)
------------ ------------ ------------
Net assets 166,799 154,446 148,220
------------ ------------ ------------
Equity
Issued share capital 2,008 2,008 2,008
Capital redemption reserve 301 301 301
Share premium 16,192 16,192 16,192
Foreign currency translation
reserve 380 (287) 349
Hedging reserve 97 291 203
Retained earnings 147,794 135,914 129,140
------------ ------------ ------------
Total equity attributable
to equity
holders of parent 166,772 154,419 148,193
Non-controlling interest 27 27 27
Total equity 166,799 154,446 148,220
------------ ------------ ------------
Condensed Consolidated Statement of Cash Flows
For the period ended 30 September 2018
Note Six months Six months Full year
to to to
30 Sep 2018 30 Sep 2017 31 Mar
2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Cash flows from operating activities
Profit before taxation 23,868 20,310 30,814
Adjustment for:
Share based payment charges 1,339 1,158 2,446
Depreciation 5 23,451 18,659 40,319
Amortisation and impairment of
intangibles 1,985 845 8,101
Net financial expense 2,325 1,284 3,421
Profit on sale of property, plant
and equipment (3,084) (3,229) (6,095)
------------ ------------ -----------
Operating cash flow before changes
in working capital and provisions 49,884 39,027 79,006
Decrease/(increase) in inventories 617 (177) (1,049)
Increase in trade and other receivables (11,462) (5,483) (6,225)
(Decrease)/increase in trade and
other payables (3,560) (4,796) 1,907
------------ ------------ -----------
Cash generated from operations 35,479 28,571 73,639
Interest paid (2,336) (1,192) (3,190)
Interest element of finance lease
rental
payments (117) (90) (213)
Interest received 91 6 75
Income tax paid (3,451) (2,663) (7,014)
------------ ------------ -----------
Net cash flows from operating
activities 29,666 24,632 63,297
Cash flows from investing activities
Proceeds from sale of property,
plant and equipment 9,850 8,694 18,518
Purchase of property, plant and
equipment (39,194) (32,646) (71,571)
Acquisition of businesses and
subsidiaries (net of cash and
overdrafts) - (8,185) (49,660)
------------ ------------ -----------
Net cash flows used in investing
activities (29,344) (32,137) (102,713)
Cash flows from financing activities
Purchase of own shares by Employee
Trust (2,029) (920) (822)
Repayment of loans - (77) (29,036)
New loans 9,000 15,000 79,000
New finance leases 108 - 348
Payment of hire purchase and finance
lease liabilities (880) (551) (1,275)
Dividends paid 8 (7,606) (6,286) (8,983)
------------ ------------ -----------
Net cash flows (used in)/from
financing activities (1,407) 7,166 39,232
Net decrease in cash and cash
equivalents (1,085) (339) (184)
Effect of exchange rate fluctuations
on cash held 249 (160) (395)
Cash and cash equivalents at beginning
of period 9,503 10,082 10,082
------------ ------------ -----------
Cash and cash equivalents at end
of period 9 8,667 9,583 9,503
------------ ------------ -----------
Notes to the Condensed Financial Statements
1. Basis of Preparation
Vp plc (the "Company") is incorporated and domiciled in the
United Kingdom. The Condensed Consolidated Interim Financial
Statements of the Company for the half year ended 30 September 2018
consolidate the financial information of the Company and its
subsidiaries (together referred to as the "Group").
This interim announcement has been prepared in accordance with
the Disclosure and Transparency Rules of the UK Financial Services
Authority and the requirements of IAS34 ("Interim Financial
Reporting") as adopted by the EU. With the exception of the new
standards below, the accounting policies applied are consistent for
all periods presented and are in line with those applied in the
annual financial statements for the year ended 31 March 2018, which
were prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the EU.
New accounting standards became applicable for the current
reporting period and the Group changed its accounting policies as a
result of adopting the following standards: IFRS 9 Financial
Instruments and IFRS 15 Revenue from Contracts with Customers. The
impact of the adoption of these standards and the new accounting
policies are disclosed in note 11.
In addition, the group is in the process of reviewing IFRS 16
Leases. It will result in almost all leases being recognised on the
balance sheet, as the distinction between operating and finance
leases is removed. Under the new standard, an asset (the right to
use the leased item) and a financial liability to pay rentals are
recognised. The only exceptions are short-term and low-value
leases. The accounting for lessors will not significantly change.
The Group has not yet determined to what extent the new standard
will result in the recognition of an asset and a liability for
future payments and how this will affect the Group's profit and
classification of cash flows. The standard is mandatory for first
interim periods within annual reporting periods beginning on or
after 1 January 2019. The Group does not intend to adopt the
standard before its effective date.
The interim announcement was approved by the Board of Directors
on 26 November 2018.
The Condensed Consolidated Interim Financial Statements do not
constitute statutory accounts as defined in Section 434 of the
Companies Act 2006.
The comparative figures for the financial year ended 31 March
2018 are extracted from the Company's statutory accounts for that
financial year. Those accounts have been reported on by the
Company's auditors and delivered to the Registrar of Companies.
The report of the auditors was (i) unqualified, (ii) did not
include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 498 (2) or (3) of
the Companies Act 2006.
The preparation of financial statements requires management to
make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates. In preparing these condensed
consolidated interim financial statements, the significant
judgements made by management in applying the Group's accounting
policies and key sources of estimation uncertainty were the same as
those that applied to the consolidated financial statements for the
year ended 31 March 2018 except as described in note 11.
The Group continues to be in a healthy financial position with
total banking facilities at the period end of GBP207.5 million,
including an overdraft facility. Since the year end net debt has
increased by GBP9.0 million to GBP188.2 million. The Board has
evaluated the banking facilities and the associated covenants on
the basis of current forecasts, taking into account the current
economic climate and an appropriate level of sensitivity analysis.
Having reassessed the principal risks the Directors consider it
appropriate to adopt the going concern basis of accounting in
preparing the interim financial information.
2. Risks and Uncertainties
The principal risks and uncertainties facing the Group and the
ways in which they are mitigated are described on page 18 and 19 of
the 31 March 2018 Annual Report and Accounts. The principal risks
and uncertainties are market risk, competition, investment /
product management, people, safety, financial risks and contractual
risk. These risks and uncertainties remain the same for this
interim financial report.
3. Summarised Segmental Analysis
Revenue Operating Profit Before Amortisation
Sept Sept Mar Sept Sept Mar
2018 2017 2018 2018 2017 2018
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
UK 175,338 120,299 271,989 26,912 22,178 43,001
International 17,873 15,693 31,650 1,266 261 1,017
193,211 135,992 303,639 28,178 22,439 44,018
-------- -------- -------- ------------- ----------- -------------
Amortisation (1,985) (845) (8,101)
Exceptional items - - (1,682)
------------- ----------- -------------
Operating Profit 26,193 21,594 34,235
------------- ----------- -------------
Net Assets
Assets Liabilities
Sept 18 Mar 18 Sept 17 Sept 18 Mar 18 Sept 17
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
UK 410,368 396,608 300,825 276,787 274,505 192,357
International 39,359 36,808 43,474 6,141 4,465 3,722
449,727 433,416 344,299 282,928 278,970 196,079
---------- ---------- ---------- ---------- ---------- ----------
Net Assets
Sept 18 Mar 18 Sept 17
GBP000 GBP000 GBP000
UK 133,581 122,103 108,468
International 33,218 32,343 39,752
166,799 154,446 148,220
---------- ---------- ----------
4. Income Tax
The effective tax rate is 19.9% in the period to 30 September
2018 (H1 2018: 17.7%). The effective rate for the period reflects
the current standard tax rate of 19% (H1 2018: 19%), as adjusted
for estimated permanent differences for tax purposes offset by
gains covered by exemptions. This is the best estimate of the
weighted average annual income tax rate expected for the full
financial year.
5. Property, Plant and Equipment
Sept 2018 Mar 2018 Sept 2017
GBP000 GBP000 GBP000
Opening carrying amount 241,938 195,569 195,569
Additions 39,935 71,412 34,929
Acquisitions (115) 28,337 5,549
Depreciation (23,451) (40,319) (18,659)
Disposals (6,766) (12,423) (5,465)
Effect of movements in exchange
rates 341 (638) (118)
-------------------- ------------------- --------------------
Closing carrying amount 251,882 241,938 211,805
-------------------- ------------------- --------------------
The value of capital commitments at 30 September 2018 was
GBP13,803,000 (31 March 2018 GBP8,349,000).
6. Business Combinations
As previously disclosed, the Group acquired Brandon Hire during
the year ended 31 March 2018. During the measurement period, the
fair value of the assets acquired and liabilities assumed are
provisional while management finalise the fair value
assessment.
There were no acquisitions in the interim period.
7. Earnings Per Share
Earnings per share have been calculated on 39,608,968 shares (H1
2018: 39,319,346 shares) being the weighted average number of
shares in issue during the period. Diluted earnings per share have
been calculated on 41,215,948 shares (H1 2018: 40,546,052 shares)
adjusted to reflect conversion of all potentially dilutive ordinary
shares. Basic earnings per share before the amortisation of
intangibles was 52.32 pence (H1 2018: 44.23 pence) and was based on
an after tax add back of GBP1,608,000 (H1 2018: GBP684,000) in
respect of the amortisation of intangibles. Diluted earnings per
share before amortisation of intangibles was 50.28 pence (H1 2018:
42.90 pence).
8. Dividends
The Directors have declared an interim dividend of 8.20 pence
(H1 2018: 6.80 pence) per share payable on 11 January 2019 to
shareholders on the register at 7 December 2018. The dividend
declared will absorb an estimated GBP3,247,000 (H1 2018:
GBP2,697,000) of shareholders funds. The dividend proposed at the
year-end was subsequently approved at the AGM in August 2018 and
GBP7,606,000 was paid in the period (H1 2018: GBP6,286,000 was
paid). The cost of dividends in the Statement of Changes in Equity
is after adjustments for the interim and final dividends waived by
the Vp Employee Trust in relation to the shares it holds for the
Group's share option schemes.
9. Analysis of Net Debt
As at Cash As at
1 Apr Flow 30 Sep
18 18
GBP000 GBP000 GBP000
Cash and cash equivalents 18,194 (2,686) 15,508
Bank overdraft (8,691) 1,850 (6,841)
Revolving credit facilities
/ loans (186,000) (9,000) (195,000)
Finance leases and hire
purchases (2,675) 772 (1,903)
------------ ---------- ------------
(179,172) (9,064) (188,236)
------------ ---------- ------------
The Group's committed revolving credit bank facilities comprise
a GBP65 million facility which expires in May 2020 and a GBP135
million facility which expires in December 2021, together with
overdraft facilities totalling GBP7.5 million.
10. Related Party Transactions
Transactions between Group Companies, which are related parties,
have been eliminated on consolidation and therefore do not require
disclosure. The Group has not entered into any other related party
transactions in the period which require disclosure in this interim
statement.
11. Changes in Accounting Policies
This note explains the impact of the adoption of IFRS 9
Financial Instruments and IFRS 15 Revenue from Contracts with
Customers on the Group's consolidated financial statements.
(a) IFRS 9 Financial Instruments
IFRS 9 replaces IAS 39 relating to the recognition,
classification and measurement of financial assets and financial
liabilities, derecognition of financial instruments, impairment of
financial assets and hedge accounting. The adoption of IFRS 9 from
1 April 2018 primarily resulted in changes in the Group's
accounting policy for impairment of financial assets. In accordance
with the transitional provisions in IFRS 9, comparative figures
have not been restated. In addition, the impact of IFRS 9 has not
been adjusted within opening reserves due to the revised policy
having an immaterial difference of GBP0.1 million as at 31 March
2018.
The Group was required to revise its impairment methodology
under IFRS 9 for trade receivables. The Group applies the IFRS 9
simplified approach to measuring expected credit losses which uses
a lifetime expected loss allowance for all trade receivables. Trade
receivables are written off when there is no reasonable expectation
of recovery. The loss allowances for trade receivables are based on
assumptions about risk of default and expected loss rates. The
Group uses judgement in making these assumptions based on the
Group's past history, existing market conditions as well as forward
looking estimates at the end of each reporting period.
(b) IFRS 15 Revenue from Contracts with Customers
The Group adopted IFRS 15 from 1 April 2018 which did not result
in significant changes to the Group's accounting policies and had
no impact to the amounts recognised in the consolidated financial
statements. Below summarises the disaggregation of revenue from
contracts with customers from the total revenue disclosed in the
Condensed Consolidated Income Statement:
Sept 2018 Sept 2017 Mar 2018
GBP000 GBP000 GBP000
Equipment hire 146,070 105,482 234,735
Services 30,680 20,854 44,260
Sales of goods 16,461 9,656 24,644
Total revenue 193,211 135,992 303,639
-------------------- -------------------- -------------------
(i) Equipment hire - Revenue from equipment hire, which is the
vast majority of Group revenue, is not affected by the adoption of
IFRS 15 and is accounted for under the leasing standard, IAS
17.
(ii) Services - Revenue from providing services is recognised in
the accounting period in which the services are rendered, the
majority of which are short term and a very immaterial proportion
bridge a financial period end. Any increases or decreases in
estimated revenues or costs arising from changed circumstances are
reflected in profit in the period in which they become known by
management. Customers are invoiced on an agreed upon basis and
consideration is payable when invoiced.
(iii) Sales of goods - Revenue from the sales of goods primary
relates to consumables and new machine sales. Revenue is recognised
when a Group entity sells a consumable to the customer or when
control of the new machine has transferred ownership to the buyer
upon delivery. Depending on the type of sale, a receivable is
recognised when the goods are delivered or due immediately.
12. Contingent Liabilities
In an international group a variety of claims arise from time to
time in the normal course of business. Such claims may arise due to
actions being taken against group companies as a result of
investigations by fiscal authorities or under regulatory
requirements. Provision has been made in these consolidated
financial statements against any claims which the directors
consider are likely to result in significant liabilities.
13. Forward Looking Statements
The Chairman's Statement includes statements that are forward
looking in nature. Forward looking statements involve known and
unknown risks, assumptions, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Group to be materially different from any future results,
performance or achievements expressed or implied by such forward
looking statements. Except as required by the Listing Rules and
applicable law, the Company undertakes no obligation to update,
review or change any forward looking statements to reflect events
or developments occurring after the date of this report.
14. Alternative Performance Measures
(i) All performance measures stated as before amortisation are
also before impairment of intangibles.
(ii) Basic earnings per share pre amortisation and exceptionals
is reconciled to basic earnings per share in note 7.
(iii) Profit before tax, amortisation and exceptionals is
reconciled to profit before tax in the Income Statement.
(iv) Return on average capital employed is based on profit
before tax, interest, amortisation and exceptionals divided by
average capital employed on a monthly basis using the management
accounts. Profit before tax, interest, amortisation and
exceptionals is reconciled to profit before interest and tax in the
Income Statement.
Responsibility statement of the directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed consolidated set of interim financial
statements has been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the EU;
-- the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being
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 a description of the
principal risks and uncertainties for the remaining six months of
the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
By order of the Board
27 November 2018
The Board
The Directors who served during the six months to 30 September
2018 were:
Jeremy Pilkington (Chairman)
Neil Stothard (Chief Executive)
Allison Bainbridge (Group Finance Director)
Steve Rogers (Non-Executive Director)
Phil White (Non-Executive Director)
Independent review report to Vp plc
Report on the Condensed Consolidated Interim Financial
Statements
Our conclusion
We have reviewed Vp plc's Condensed Consolidated Interim
Financial Statements (the "interim financial statements") in the
interim report 2018/19 of Vp plc for the 6 month period ended 30
September 2018. Based on our review, nothing has come to our
attention that causes us to believe that the interim financial
statements are not prepared, in all material respects, in
accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
-- the Condensed Consolidated Balance Sheet as at 30 September 2018;
-- the Condensed Consolidated Income Statement and Condensed
Consolidated Statement of Comprehensive Income for the period then
ended;
-- the Condensed Consolidated Statement of Cash Flows for the period then ended;
-- the Condensed Consolidated Statement of Changes in Equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the interim report
2018/19 have been prepared in accordance with International
Accounting Standard 34, 'Interim Financial Reporting', as adopted
by the European Union and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
As disclosed in note 1 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Group is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The interim report 2018/19, including the interim financial
statements, is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the interim
report 2018/19 in accordance with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Our responsibility is to express a conclusion on the interim
financial statements in the interim report 2018/19 based on our
review. This report, including the conclusion, has been prepared
for and only for the company for the purpose of complying with the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility
for any other purpose or to any other person to whom this report is
shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the interim
report 2018/19 and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
Leeds
27 November 2018
- Ends -
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 FKADQABDDADB
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