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Company Avesco Group PLC
TIDM AVS
Headline

Final Results

Released 07:00 10-Jan-2013
Number 2107V07

RNS Number : 2107V
Avesco Group PLC
10 January 2013
 



EMBARGOED UNTIL 7.00am, 10 January 2013

 

AVESCO GROUP plc

 

Preliminary Results for the year ended 30 September 2012

 

Avesco Group plc ("Avesco" or the "Group") (AIM: AVS), the international provider of services to the corporate presentation, entertainment and broadcast markets, announces its preliminary results for the year ended 30 September 2012.

 

KEY HIGHLIGHTS

 

·    Revenue up 14% to £143.5m (2011: £125.5m)

·    Operating profit up 196% to  £4.5m (2011: £1.5m)

·    Trading profit up 217% to £7.4m (2011: £2.3m)*

·    Trading EBITDA up 34% to £27.1m (2011: £20.3m)*

·    Basic earnings per share of 7.3p (2011: loss per share of 0.5p)

·    Adjusted basic earnings per share of 21.7p (2011: 2.6p)*

·    Total dividend increased up 33% to 4.0p per share (2011: 3.0p)

 

* As described in note 8, the Group uses certain non-GAAP alternative measures to assess underlying operating performance.

 

Richard Murray, Chairman, commented:

 

"It is very satisfying to be able to report on a highly successful year for the Avesco Group.  The staging of the London 2012 Olympic Games and Paralympic Games on our doorstep in the UK has been an undoubted benefit.  However, even excluding the impact of these events, our underlying growth has been substantial and gives us confidence for the future.

           

 We have gained considerable forward momentum over recent years, despite the uncertain economic situation around the world.  We shall continue to seek to generate cash, grow dividends for our shareholders and ensure that our balance sheet remains strong.

           

 Longer term, the underlying strengths of our business in terms of people, equipment and quality of service augur well for continued growth in all our divisions."

 

 

For further information please contact:

 

Avesco Group plc


Richard Murray, Chairman

01293 583400

John Christmas, Group Finance Director






finnCap

Ed Frisby/Rose Herbert, Corporate Finance

Brian Patient/Victoria Bates, Corporate Broking

 

020 7220 0500

 



 

Avesco Group plc

Chairman's statement and review

           

It is very satisfying to be able to report on a highly successful year for the Avesco Group.  The staging of the London 2012 Olympic Games and Paralympic Games on our doorstep in the UK has been an undoubted benefit.  However, even excluding the impact of these events, our underlying growth has been substantial and gives us confidence for the future.

           

Results

           

During the twelve months ended 30 September 2012, our revenue grew 14% to £143.5m (2011: £125.5m).  While 2012 saw significant Olympic-related turnover, in 2011 the Group benefitted from the Commonwealth Games in Delhi and extra motor shows in Europe.   If these events (and the results of our former business in Monaco (sold in December 2011) are eliminated, a better comparison would show that the underlying business has achieved a like-for-like growth in revenue of 9%.

           

Our operating profit was £4.5m (2011: £1.5m), and after taking account of net interest costs of £1.5m (2011: £1.4m), the profit before income tax was £3.0m (2011: £0.1m). The basic earnings per share were 7.3p (2011: loss per share 0.5p), and the diluted earnings per share were 7.0p (2011: loss per share 0.5p).

           

The trading profit (which excludes restructuring costs, compensation for loss of office and other non-recurring costs) more than tripled to £7.4m (2011: £2.3m).  The trading profit less interest and current tax was £5.5m (2011: £0.7m) and on this basis the adjusted basic earnings per share rose significantly to 21.7p (2011: 2.6p).

           

The Group also produced a significant improvement in trading EBITDA, which rose to £27.1m (2011: £20.3m).

           

As part of our approval process for large capital expenditure commitments, we seek to ensure that we have a sufficient order book visibility to justify the purchase decision.  This year, with London 2012 and other events in the diary, we were able to invest a net £30.3m (2011: £15.6m) with the reasonable expectation that significant revenues would be earned.  With the Olympics and Paralympics taking place so close to our financial year end, our working capital requirements increased temporarily by £4.9m which, when combined with the investments in new equipment and dividend payment for the previous financial year, contributed to a net debt cash outflow for the year of £13.6m (2011: £1.8m inflow).  As a result, gearing (being net debt divided by net assets) increased to 64% at the year end (2011: 33%) although we expect this ratio to reduce going forward.  The net assets of the Group grew over the year to £38.6m (2011: £37.1m) or £1.52 per share (2011: £1.46).

           

Creative Technology (CT)

          

The main driver of growth this year was Creative Technology, our largest business, with revenues up to £95.5m (2011: £80.5m) and trading profit of £4.5m (2011: £1.5m).  The 2012 Olympics were a major factor, generating revenue of £6.5m.  We provided services to Panasonic at many of the venues, at the torch relay for Samsung, at all four opening and closing ceremonies, the Athlete's Village and numerous corporate pavilions and hospitality projects, including the Hyde Park BT Live Events, Cisco House, the BA Live Site, Russia Sochi Park and Holland Heineken House. Dimension Audio, a division of CT, also provided sound systems to Sports Technology, in which the Group has a 40% interest, at many venues around the country.

           

While London was the focus of much of the world's attention, the underlying performance in CTUS was particularly strong and CT Europe also performed well in a difficult market in mainland Europe. 

           

Creative Technology Asia Pacific ("CTAP"), the business we set up in China four years ago, failed to reach its break even target and, disappointingly, losses there were in excess of £1m.  In deciding to start up CTAP from scratch, we recognised that there would be challenges and that it may take some time before the business becomes fully established and profitable.  CTAP provides an important service to our international clients at their events in the region and therefore we still regard a presence in the region as material to CT's long term strategy.  However, in order to enable us to move the business to the next level, we recognise the need to add more local clients to our portfolio of inbound work from the rest of the world.  As a result, we have strengthened the CTAP management team over the summer by recruiting additional Chinese nationals and we look forward to the benefits of their local knowledge and expertise leading to an improvement in our results in the region.

           

Last year we brought our CT operations around the world up to 17 locations with the opening of an office in Qatar, alongside our other Middle East operation in Dubai.  These businesses share equipment and personnel as required and it is very pleasing to be able to report a positive contribution to profit from the region for the first time.

           

The trend for some clients to prefer to source all of their show requirements from a single supplier has continued.  In response, we plan to build upon our expertise in video and audio by further expanding our lighting stock in 2013 with the aim of broadening the range of services that we offer and to enhance the level of support that we can provide to our major customers.

           

Full Service

           

Our Full Service businesses had another strong year with a trading profit of £1.1m (2011: £0.4m) despite revenues down slightly at £19.4m (2011: £20.8m).  These figures are somewhat distorted by the inclusion of our full service business in Monaco that was sold in December 2011.  Excluding the Monaco business, revenue increased significantly to £19.4m (2011: £17.8m), and trading profit more than doubled to £1.1m (2011: £0.4m). 

           

Whilst the performance in mainland Europe showed modest growth in profitability, UK-based MCL, the division's largest business, did exceptionally well. A good year for MCL was bolstered by a busy Olympics' period, when MCL worked for a number of clients, including providing its services at various Olympics soccer venues around the country.

           

Broadcast Services

           

Revenue for our Broadcast Services division grew comfortably to £28.6m (2011: £24.3m) with trading profit also up to £2.3m (2011: £0.8m).  Of the two businesses that make up this division, Fountain Studios continued to produce strong profits, albeit down on the previous year, and Presteigne Charter was able to benefit from the 2012 Olympics by supplying television facilities and equipment to broadcasters from the Americas, Asia, Australia and across Europe.  A strategic review of the Presteigne Charter business at the end of the year resulted in a restructure of its projects division, which contributed to higher than budgeted operating expenses.

           

Dividend

           

As indicated in last year's Report and Accounts, we were able to reintroduce an interim dividend at the half year of 1.0p per share (2011: nil), which was paid in October 2012.  The Board is now pleased to announce that it proposes a final dividend of 3.0p per share, making a total dividend of 4.0p per share for the year (2011: 3.0p), an increase of one third, reflecting both the outstanding results achieved in 2012 and our confidence in the longer term prospects for the Group.

 

The proposed dividend is expected to be paid on 8 April 2013 to shareholders on the register at the close of business on 15 March2013.

 

Disney

 

The Group has an economic interest in the outcome of litigation brought by Celador International against the Walt Disney Company and others ("Disney").  Celador was awarded $319m in damages and pre judgement interest and, if paid in full, the Group's share after costs is estimated to be $60m.  Disney appealed the decision and their appeal was rejected on 3 December 2012.  On 31 December 2012, Disney filed a petition to seek leave for a rehearing of the appeal by the United States Ninth Circuit Court of Appeals en banc. The filing of the petition is the next stage in the appeal process and stays the enforcement of the judgement until the appeal process is complete.  We shall of course provide further updates, as appropriate, in due course. It remains the Board's current intention to distribute to shareholders the majority of the net monies received, after costs and taxes.

           

Current Trading

           

After a busy end to 2012, the new financial year has started more slowly.  In the UK, some major corporations appear to have used much of their 2012 events budget on the Olympics and as a result we are seeing a reduced spend in the final quarter of the calendar year.  In the US, uncertainties caused by the Presidential election and then the delay in reaching an agreement on federal fiscal policy appear to have held back demand from customers in certain areas.  In the Eurozone, the continuing economic difficulties in the region have not been helpful while, in the Middle East, some major events, to which we provided services in the early part of 2011/12, have either been delayed or have not repeated this year.  However, we are now seeing some encouraging results from our operations in China as well as firm evidence of an upturn in business in the first few months of the 2013 calendar year, both in the UK and the US.

           

People

           

The 2012 London Olympics put an unprecedented strain on all of the staff involved including many from our overseas offices who were drafted in to help.  Many staff, including those who were not directly involved, worked extended and unsocial hours to ensure that our customers received the excellent service that they have come to expect.  There is no doubt that the quality of our staff is the major factor in our continued success and I would take this opportunity to thank them all.

           

We are delighted to announce that Ami Giniger has been appointed as non-executive Deputy Chairman.  Ami has served as a non-executive Director of the Company since March 2011 and brings significant commercial and industry experience to the Board.

           

Future Prospects

           

Whilst 2012 results have been good, we must move on to the challenges of 2013, where we will not have the benefit of any major events of the same scale as last year to lift our revenue further.  We expect the major capital expenditure programme in 2012 to stand us in good stead and allow us to spend less this year as we look to reduce our net debt, while still leaving us well placed to maintain strong underlying growth.

           

We have gained considerable forward momentum over recent years, despite the uncertain economic situation around the world.  We shall continue to seek to generate cash, grow dividends for our shareholders and ensure that our balance sheet remains strong.

           

Longer term, the underlying strengths of our business in terms of people, equipment and quality of service augur well for continued growth in all our divisions.

 

Avesco Group plc

Consolidated Income Statement

For the year ended 30 September 2012

 



Year ended 30 September



2012

2011


Note

£000s

£000s





Revenue

1

143,452

125,529

Cost of sales


(93,246)

(82,965)

Gross profit


50,206

42,564





Operating expenses


(45,979)

(41,046)

Share of associate's profit


271

                         -  

Operating profit

1

4,498

1,518





Finance income


51

6

Finance costs


(1,586)

(1,422)

Profit before income tax


2,963

102





Income tax expense

3

(1,108)

(236)

Profit/(loss) for the financial year


1,855

(134)





Pence per share

Pence per share

Earnings/(losses) per share attributable to the equity holders of the company (note 4)





7.3p

(0.5)p


7.0p

(0.5)p

 

 

 



Avesco Group plc

Alternative Performance Measures (non-GAAP)

For the year ended 30 September 2012

              










               Year ended 30 September





2012

2011





£000s

£000s









Operating profit


4,498

1,518



Adjusted to exclude:






Restructuring costs and compensation for loss of office


2,458

669



Other non-recurring costs


428

140



Trading profit


7,384

2,327









Net finance costs


(1,535)

(1,416)



Trading profit after net finance costs


5,849

911









Current tax expense (note 3)


(346)

(247)



Trading profit after net finance costs and current tax expense


5,503

664









Trading EBITDA (note 2)


27,147

20,262









Adjusted earnings per share (per note 4)


Pence per share

Pence per share



- basic


21.7p

2.6p



- diluted


20.8p

2.6p








 

 

Refer to note 8 for a full description of the alternative performance measures adopted by the Group.

 

 

 

Consolidated Statement of Comprehensive Income

For the year ended 30 September 2012

 

 

 



Year ended 30 September



2012

2011



£000s

£000s





Profit/(loss) for the financial year


1,855

(134)





Other comprehensive expense:




Currency translation differences


(143)

(98)

Total comprehensive income/(expense) for the year


1,712

(232)

 

 

 

Avesco Group plc

Consolidated balance sheet

As at 30 September 2012

 



                          Year ended 30 September



2012

2011



£000s

£000s

Assets




Non-current assets




Property, plant and equipment


61,786

55,186

Intangible assets


130

179

Investment in associate


271

                      -  

Deferred income tax assets


6,707

6,117

Trade and other receivables


159

182



69,053

61,664

Current assets




Inventories


1,794

1,507

Trade and other receivables


26,573

23,590

Current income tax assets


86

85

Cash at bank and on hand


4,345

7,501



32,798

32,683

Total assets


101,851

94,347

Liabilities




Non-current liabilities




Borrowings and loans


21,662

14,157

Deferred income tax liabilities


4,425

3,041

Provisions for other liabilities and charges


432

491



26,519

17,689

Current liabilities




Trade and other payables


28,540

33,242

Current income tax liabilities


544

656

Borrowings and loans


7,448

5,483

Provisions for other liabilities and charges


189

204



36,721

39,585

Total liabilities


63,240

57,274

Total assets less total liabilities


38,611

37,073





Equity




Capital and reserves attributable to equity holders of the company




Ordinary shares


2,599

2,599

Share premium


23,286

23,286

Translation reserve


(27)

116

Retained earnings


12,753

11,072

Total equity


38,611

37,073

 

Avesco Group plc

Consolidated Statement of Changes in Equity

For the year ended 30 September 2012

 


Share capital account

Share premium account

Translation reserves

Retained earnings

Total

Group

£000s

£000s

£000s

£000s

£000s







Balance at 1 October 2011

2,599

23,286

116

11,072

37,073

Profit for the period

               -  

               -  

               -  

1,855

1,855

Other comprehensive expense, net of tax

               -  

               -  

(143)

               -  

(143)

Total comprehensive income for the period

               -  

               -  

(143)

1,855

1,712

Transactions with owners in their capacity as owners:





External dividends paid

               -  

               -  

               -  

(761)

(761)

LTIP and share options

               -  

               -  

               -  

587

587

Balance at 30 September 2012

2,599

23,286

(27)

12,753

38,611







 








Share capital account

Share premium account

Translation reserves

Retained earnings

Total


£000s

£000s

£000s

£000s

£000s







Balance at 1 October 2010

2,599

23,286

214

11,151

37,250

Loss for the period

               -  

               -  

               -  

(134)

(134)

Other comprehensive expense, net of tax

               -  

               -  

(98)

               -  

(98)

Total comprehensive expense for the period

               -  

               -  

(98)

(134)

(232)






Transactions with owners in their capacity as owners:





External dividends paid

               -  

               -  

               -  

(254)

(254)

LTIP and share options

               -  

               -  

               -  

309

309

Balance at 30 September 2011

2,599

23,286

116

11,072

37,073

 

Avesco Group plc

Consolidated cash flow statement

For the year ended 30 September 2012

              




Year ended 30 September



2012

2011



£000s

£000s





Cash flows from operating activities




Cash generated from continuing operations


19,715

19,368

Net interest paid


(1,517)

(1,422)

Income tax paid


(466)

(62)

Net cash generated from operating activities


17,732

17,884





Cash flows from investing activities




Purchases of property, plant and equipment and software


(32,539)

(17,954)

Proceeds from sale of property, plant and equipment


1,831

2,332

Proceeds from disposal of investments


403

                   -  

Net cash used in investing activities


(30,305)

(15,622)





Cash flows from financing activities




Proceeds from borrowings


18,128

8,901

Repayments of external borrowings


(8,258)

(10,000)

Dividends paid to Company's shareholders


(761)

(254)

Net cash generated from/(used in) financing activities


9,109

(1,353)





Cash used in discontinued operations


(247)

(262)





Net (decrease)/increase in cash and cash equivalents


(3,711)

647

Cash, cash equivalents and bank overdrafts at beginning of year


7,501

6,896

Exchange gains/(losses) on cash and bank overdrafts


326

(42)

Cash and cash equivalents at end of year


4,116

7,501

 

 



 

Avesco Group plc

Notes to the preliminary announcement

For the year ended 30 September 2012

 

 

1.   Segmental information

 

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions.

 

The Board of Directors categorises Group companies based on the services they provide and as a result the business is split into four segments.  These correspond to three operating segments (Creative Technology, Full Service and Broadcast Services) which together provide the Group's principal activity of services to the corporate presentation, entertainment and broadcast markets.  In addition, the Group recognises a further segment, Head Office, which provides administrative support to the rest of the Group.

 

Creative Technology provides specialist AV services and equipment to the live events, broadcast and entertainment markets.  The Full Service segment consists of companies which provide full technical support for conferences, sports, music, corporate and television programmes.  Finally, the Broadcast Services segment provides broadcast equipment, systems and services to the broadcast industry.

 

The Board of Directors assesses performance of the operating segments based on trading profit (see note 8).  As segmental performance does not therefore include finance costs and tax, such items are not allocated to segments.

 

The segmental results for the year ended 30 September 2012 are as follows:

 


Creative Technology

Full Service

Broadcast Services

Head Office

Group


£000s

£000s

£000s

£000s

£000s







Total segment revenue

96,232

19,988

29,653

                  -  

145,873

Inter segment revenue

(753)

(601)

(1,067)

                  -  

(2,421)

Revenue

95,479

19,387

28,586

                  -  

143,452







Trading EBITDA*

17,512

1,874

8,238

(477)

27,147

Less depreciation

(12,932)

(787)

(5,914)

(12)

(19,645)

Less amortisation

(54)

(32)

(31)

(1)

(118)

Trading profit/(loss)

4,526

1,055

2,293

(490)

7,384

Restructuring costs and compensation for loss of office

(298)

(103)

(1,194)

(863)

(2,458)

Other non-recurring credits/(costs)

7

                  -  

10

(445)

(428)

Operating profit/(loss)

4,235

952

1,109

(1,798)

4,498







Net finance costs





(1,535)

Profit before income tax





2,963







Income tax expense





(1,108)

Profit for the financial year





1,855

 

*Trading EBITDA includes profit on sale of property, plant and equipment of £859,000 for Creative Technology, £21,000 for Full Service and £422,000 for Broadcast Services.

 



 

The segmental results for the year ended 30 September 2011 are as follows:

 


Creative Technology

Full Service

Broadcast Services

Head Office

Group


£000s

£000s

£000s

£000s

£000s







Total segment revenue

81,154

20,931

24,608

                  -  

126,693

Inter segment revenue

(685)

(122)

(357)

                  -  

(1,164)

Revenue

80,469

20,809

24,251

                  -  

125,529







Trading EBITDA*

12,212

1,681

6,710

(341)

20,262

Less depreciation

(10,580)

(1,217)

(5,885)

(8)

(17,690)

Less amortisation

(133)

(69)

(41)

(2)

(245)

Trading profit/(loss)

1,499

395

784

(351)

2,327

Restructuring costs

(300)

(299)

(70)

                  -  

(669)

Other non-recurring and prior year costs

                  -  

                  -  

                  -  

(140)

(140)

Operating profit/(loss)

1,199

96

714

(491)

1,518







Net finance costs





(1,416)

Profit before income tax





102







Income tax expense





(236)

Loss for the financial year





(134)

 

* Trading EBITDA includes profit on sale of property, plant and equipment of £103,000 for Creative Technology, £768,000 for Full Service and £931,000 for Broadcast Services.

 

Inter-segment transactions are entered into under the normal commercial terms and conditions that would be available to unrelated third parties.

 

No single customer contributed revenues of greater than 5% of the Group's total revenue for 2011 or 2012.

 

Revenue recognised in the income statement is analysed as follows:

 



2012

2011

Revenue


£000s

£000s





Revenue from audiovisual and broadcast services


143,452

125,529

Interest income


5

6



143,457

125,535

 

The revenue listed above cannot be further split between hire of goods and provision of services as the sales are interlinked and viewed as one amount.

 

The segmental assets and liabilities at 30 September 2012, external net debt at 30 September 2012 and capital expenditure cash flows for the year then ended are shown below.

 



Creative Technology

Full Service

Broadcast Services

Head Office

Unallocated

Group



£000s

£000s

£000s

£000s

£000s

£000s









Total assets


62,127

8,456

34,662

(10,187)

6,793

101,851

Non-current assets


36,154

2,561

23,453

19

6,707

68,894

Total liabilities


29,081

3,805

10,081

15,304

4,969

63,240

Capital expenditure


26,069

1,629

4,840

1

                 -  

32,539

External net debt


5,371

(1,968)

613

20,749

                 -  

24,765

 

Unallocated items relate to deferred tax and income tax. Total assets in the 'Head Office' segment are shown as a credit balance primarily as a result of the offset arrangement the Group has with HSBC Bank plc. This is structured in such a way that every company in the pool is jointly and individually liable for the overdraft and, therefore, in practice the net position is applicable.

 



 

The segmental assets and liabilities at 30 September 2011, external net debt at 30 September 2011 and capital expenditure cash flows for the year then ended are shown below.

 



Creative Technology

Full Service

Broadcast Services

Head Office

Unallocated

Group



£000s

£000s

£000s

£000s

£000s

£000s









Total assets


53,811

7,739

34,551

(7,956)

6,202

94,347

Non-current assets


26,757

2,438

26,141

29

6,117

61,482

Total liabilities


28,319

4,074

9,584

11,600

3,697

57,274

Capital expenditure


10,079

1,161

6,679

35

                 -  

17,954

External net debt


(3,348)

(1,082)

1,635

14,934

                 -  

12,139

 

The Group's main business segments operate in four main geographical areas. Details of the segmental allocation of revenue, assets and capital expenditure can be found below.

 



2012

2011

Revenue


£000s

£000s





United Kingdom


50,462

45,063

Mainland Europe


28,721

29,181

United States of America


43,705

39,216

Rest of the World


20,564

12,069



143,452

125,529

 

Revenue is allocated based on the country in which the customer is located.

 

 



2012

2011

Total assets


£000s

£000s





United Kingdom


49,960

46,987

Mainland Europe


17,354

13,815

United States of America


21,131

17,267

Rest of the World


6,613

10,076



95,058

88,145

Unallocated assets


6,793

6,202



101,851

94,347

 

Total assets are allocated based on where the assets are owned.

 



2012

2011

Total non-current assets (other than deferred tax assets)


£000s

£000s





United Kingdom


34,596

36,130

Mainland Europe


10,352

6,538

United States of America


13,762

8,696

Rest of the World


3,477

4,001



62,187

55,365

Unallocated assets


6,707

6,117



68,894

61,482

 

Total non-current assets (other than deferred tax assets) are allocated based on where the assets are owned.

 



2012

2011

Capital expenditure


£000s

£000s





United Kingdom


11,171

11,052

Mainland Europe


7,982

2,545

United States of America


11,673

3,042

Rest of the World


1,713

1,315



32,539

17,954

 

Capital expenditure is allocated based on where the assets are owned or leased.



 

2.   Trading earnings before interest, taxation, depreciation and amortisation ('Trading EBITDA')

 

 



2012

2011



£000s

£000s





Trading profit


7,384

2,327

Depreciation


19,645

17,690

Amortisation of software


118

245

Trading EBITDA


27,147

20,262

 

 

 

3.   Income tax expense

 


2012

2011



£000s

£000s








358

272

Adjustments in respect of prior years


(12)

(25)


346

247








515

(254)

Impact of change in the UK tax rate


247

243


762

(11)




Income tax charge


1,108

236

 

 

 

 

 

4.   Earnings/(losses) per share

 


2012

2011


£000s

£000s




Profit/(loss) from continuing operations

1,855

(134)

Restructuring costs and compensation for loss of office

2,458

669

Other non-recurring costs

428

140

Deferred tax charge/(credit)

762

(11)

Trading profit after net finance costs and current tax expense

5,503

664







Weighted average number of shares (net of treasury shares)



For basic earnings per share (000's)

25,393

25,264

Effect of dilutive share options (000's)

1,020

                         -  

For diluted earnings per share (000's)

26,413

25,264




Earnings/(losses) per share



Basic

7.3p

(0.5)p

Diluted

7.0p

(0.5)p




Adjusted basic

21.7p

2.6p

Adjusted diluted

20.8p

2.6p

 

 

Basic earnings per share have been calculated by dividing profit/loss for the period by the weighted average number of ordinary shares in issue during the period.

 

Diluted earnings per share have been calculated by dividing profit/loss for the period by the weighted average number of ordinary shares in issue during the period, adjusted for any awards under the Company's Long Term Incentive Plan ("LTIP") where pre-specified performance conditions have been satisfied and any required conversion of dilutive potential options. There is no dilution in the prior period as the performance conditions had not yet been satisfied for the outstanding LTIP awards. Losses are not subject to dilution.

 

Adjusted earnings per share have been calculated as per note 8.

 

 

5.   Dividends

 

An interim dividend for the year ended 30 September 2012 of 1.0p per share amounting to a total of £254,000 was approved and was paid on 1 October 2012 to shareholders on the Register at 6.00pm on 14 September 2012.

 

A final dividend for the year ended 30 September 2011 of 3.0p per share amounting to a total of £761,000 was approved and was paid on 31 May 2012 to shareholders on the register at 6.00pm on 10 April 2012. A final dividend for the year ended 30 September 2010 of 1.0p per share amounting to a total of £254,000 was approved by shareholders and was paid on 6 April 2011 to shareholders on the register at 6.00pm on 11 March 2011.

 

A final dividend for the year ended 30 September 2012 of 3.0p per share has been proposed and, subject to shareholders' approval, will be paid on 8 April 2013 to shareholders on the register at the close of business on 15 March 2013.

 



 

6.   Analysis of net debt

 



At 1 October 2011

Net cash flow

Other non cash changes

Currency translation differences

At 30 September 2012



£000s

£000s

£000s

£000s

£000s








Cash at bank and in hand


7,501

(3,484)

               -  

328

4,345

Bank overdrafts


               -  

(227)

               -  

(2)

(229)

Net cash


7,501

(3,711)

               -  

326

4,116








Bank loans due in less than one year


               -  

               -  

               -  

               -  

               -  

Bank loans due in more than one year


(10,020)

(4,000)

               -  

375

(13,645)

Finance lease obligations due in less than one year


(5,483)

3,549

(5,405)

120

(7,219)

Finance lease obligations due in more than one year


(4,137)

(9,419)

5,405

134

(8,017)

Net debt


(12,139)

(13,581)

               -  

955

(24,765)

















At 1 October 2010

Net cash flow

Other non cash changes

Currency translation differences

At 30 September 2011



£000s

£000s

£000s

£000s

£000s








Cash at bank and in hand


6,896

647

               -  

(42)

7,501

Bank overdrafts


               -  

               -  

               -  

               -  

               -  

Net cash


6,896

647

               -  

(42)

7,501








Bank loans due in less than one year


               -  

               -  

               -  

               -  

               -  

Bank loans due in more than one year


(12,363)

2,401

               -  

(58)

(10,020)

Finance lease obligations due in less than one year


(5,279)

4,273

(4,443)

(34)

(5,483)

Finance lease obligations due in more than one year


(2,979)

(5,575)

4,443

(26)

(4,137)

Net debt


(13,725)

1,746

               -  

(160)

(12,139)

 

Non cash changes comprise transfers between categories of bank loans and finance lease obligations.

 

 

7.   Status of preliminary announcement

 

The financial information set out in this announcement for the year ended 30 September 2012 does not constitute the Group's statutory accounts as defined by s435 of the Companies Act but has been extracted from the 2012 statutory accounts on which an unqualified audit report has been made by the auditors, and which did not contain an emphasis of matter paragraph nor a statement under section 498(2) or (3) of the Companies Act 2006.

 

Statutory Accounts for the year ended 30 September 2011 have been delivered to the Registrar of Companies and the auditors' report on these accounts was unqualified and did not contain a statement under either Section 498(2) or (3) of the Companies Act 2006.

 

 

8.   Basis of preparation

 

The preliminary results for the year ended 30 September 2012 have been prepared in accordance with the accounting policies set out in the annual report and accounts for the year ended 30 September 2011.

 

For the purposes of this preliminary announcement and the annual report and accounts, the Group uses alternative non-Generally Accepted Accounting Practice ("non-GAAP") financial measures which are not defined within IFRS. The Directors use these measures in order to assess the underlying operational performance of the Group, and as such, these measures are important and should be considered alongside the IFRS measures. The following non-GAAP measures are referred to in the preliminary announcement:

 

a)    Trading profit/(loss)

 

'Trading profit/loss' is separately disclosed, being defined as operating profit adjusted to exclude restructuring costs and compensation for loss of office and other non-recurring costs. Other non-recurring costs relate to items which management believe do not accurately reflect the underlying trading performance of the business in the period. Examples of other non-recurring costs are profit/loss on disposal of investments and one off consultancy and legal costs incurred which management believe do not accurately reflect the trading performance of the business. The Directors believe that trading profit/loss is an important measure of the underlying performance of the Group.

 

b)    Adjusted earnings per share

 

'Adjusted earnings per share' is calculated by dividing the profit for the period excluding restructuring costs and compensation for loss of office, other non-recurring costs and the deferred tax charge/credit by the weighted average number of ordinary shares in issue during the period. The Directors believe that adjusted earnings per share provides an important measure of the underlying performance of the Group.

 

c)     Trading EBITDA

 

Trading earnings before interest, taxation, depreciation and amortisation ('Trading EBITDA') is separately disclosed, being defined as trading profit/loss adjusted to exclude depreciation and amortisation of software. The Directors believe that trading EBITDA is an important measure of the underlying performance of the Group.

 

 

9.   Annual general meeting

 

The Annual General Meeting of the Company will be held at 9.30am on 14 March 2013 at Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH.

 

 

10. Annual report and accounts

 

Copies of the full Statutory Accounts will be dispatched to shareholders in due course. Copies will also be available on the Company's website (www.avesco.com) and from the registered office of the Company: Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH.

 

 

 

 


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