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Begbies Traynor Group PLC  -  BEG   

Half-year Report

Released 07:00 12-Dec-2017

RNS Number : 0206Z
Begbies Traynor Group PLC
12 December 2017
 

 

12 December 2017

Begbies Traynor Group plc

 

Half year results

for the six months ended 31 October 2017

 

Begbies Traynor Group plc (the 'company' or the 'group'), the business recovery, financial advisory and property services consultancy, today announces its half year results for the six months ended 31 October 2017.

 

Financial overview

 

 

2017

2016*

 

£m

£m

Revenue

26.0

24.5

Adjusted profit before tax**

2.9

2.5

Profit before tax

1.0

0.9

Adjusted basic EPS*** (p)

2.0

1.8

Basic EPS (p)

0.3

0.5

Interim dividend (p)

0.7

0.6

Net debt

6.9

12.2

 

* Restated as detailed in note 1

 

** Profit before tax of £1.0m (2016: £0.9m) plus amortisation of intangible assets arising on acquisitions of £0.9m (2016: £1.3m) plus transaction costs of £1.0m (2016: £0.3m).

 

*** See reconciliation in note 5

 

Highlights:

 

·      A good first half performance, results in line with expectations

·      Business recovery and advisory services improved its performance:

increase in insolvency market activity levels over the last twelve months

revenue growth and improved margins

·      Property services performed in line with expectations as we continued to invest in its service offering and geographical coverage

·      Strong cash generation drove a significant reduction in net debt and supports the board's decision to declare an increased interim dividend, the first increase since 2011

 

Outlook:

 

·      Well placed to deliver upon current market expectations for the full year

 

 

Commenting on the results, Ric Traynor, Executive Chairman of Begbies Traynor Group, said:

 

"I am pleased to report a good first half performance, in line with our expectations, reflecting a continuation of the improved performance in business recovery and advisory services experienced in the second half of last year, with property services performing as anticipated.

 

"Our good performance in the first half of the year leaves us well placed to deliver upon current market expectations for the full year; the delivery of which will enable the group to continue its recent track record of profit and earnings growth.

 

"The group is in its strongest position for many years, which enables us to execute our strategy and continue to invest in the growth of the business."

 

 

A meeting for analysts will be held today at 8:45am for 9.00am at the offices of MHP Communications, 6 Agar Street, London WC2N 4HN.  Please contact Peter Lambie on 020 3128 8570 or via peter.lambie@mhpc.com if you would like to attend.
 

Enquiries please contact:

               

Begbies Traynor Group plc                                                                                                              0161 837 1700

Ric Traynor - Executive Chairman

Nick Taylor - Group Finance Director

 

Canaccord Genuity Limited                                                                                                             020 7523 4588

(Nominated Adviser and Joint Broker)

Sunil Duggal

Andrew Buchanan

Margarita Mitropoulou

 

Shore Capital                                                                                                                                       020 7408 4090

(Joint Broker)

Mark Percy / Anita Ghanekar

               

MHP Communications                                                                                                                      020 3128 8100

Reg Hoare / Katie Hunt

 

 

Information on Begbies Traynor Group can be accessed via the Group's website at
www.begbies-traynorgroup.com

 

 

CHAIRMAN'S STATEMENT

 

INTRODUCTION

 

I am pleased to report a good first half performance, in line with our expectations, reflecting an improved performance in business recovery and advisory services, with property services performing as anticipated.

 

In the business recovery and advisory division, we were encouraged to see a continuation of the increase in activity levels experienced in the second half of the prior year, with a strong year on year improvement in results. We remain the leading UK corporate appointment taker by volume, leaving us well positioned to take advantage of any sustained increase in activity levels, which remain close to historically low levels.

 

Property services performed in line with our expectations. We have continued to invest in the division to develop both our service offering and our geographical coverage, which we anticipate will benefit future years.

 

This strong financial performance has enabled the group to remain strongly cash generative, leading to reduction in net debt to £6.9m as at 31 October 2017 (2016: £12.2m) and allowing continued investment in growth opportunities.

 

The group's financial performance and cash generation in the first half, combined with our improved confidence in sustaining our recent earnings growth, has led the board to declare a 17% increase in the interim dividend to 0.7p. This is the first dividend increase since 2011.

 

RESULTS

 

Group revenue from continuing operations in the half year ended 31 October 2017 was £26.0m (2016: £24.5m). Adjusted profit before tax* increased to £2.9m (2016: £2.5m). Profit before tax was £1.0m (2016: £0.9m). Profit for the period from continuing operations was £0.4m (2016: £0.5m).

 

Earnings per share from continuing operations**, adjusted for the net of tax impact of amortisation of intangible assets arising on acquisitions and transaction costs, were 2.0p (2016: 1.8p). Basic and fully diluted earnings per share from continuing operations were 0.3p (2016: 0.5p).

                                                          

Net debt at 31 October 2017 was £6.9m (30 April 2017: £10.3m, 31 October 2016: £12.2m). Gearing stood at 12% (Apr 17: 18%, Oct 16: 21%) and the group retains significant headroom in its committed banking facilities. Interest cover*** was 12.2 times (2016: 6.3 times).

 

* Profit before tax from continuing operations of £1.0m (2016: £0.9m) plus amortisation of intangible assets arising on acquisitions of £0.9m (2016: £1.3m) plus transaction costs of £1.0m (2016: £0.3m) 

** See reconciliation in note 5

*** Before amortisation and transaction costs 

 

DIVIDEND

 

The board is pleased to declare an increased interim dividend of 0.7p (2016: 0.6p), an increase of 17%.

 

The full year dividend will be set in line with our commitment to a long-term progressive dividend policy, with any dividend growth taking account of both the market outlook and earnings growth.

 

The interim dividend will be paid on 10 May 2018 to shareholders on the register as at 13 April 2018, with an ex-dividend date of 12 April 2018.

 

OUTLOOK

 

Our good performance in the first half of the year leaves us well placed to deliver upon current market expectations for the full year; the delivery of which will enable the group to continue its recent track record of profit and earnings growth.

 

The group is in its strongest position for many years, which enables us to execute our strategy and continue to invest in the growth of the business. We will provide an update on third quarter trading in early March 2018.

 

Ric Traynor

Executive chairman

12 December 2017
 

BUSINESS REVIEW

 

Begbies Traynor Group plc is a leading business recovery, financial advisory and property services consultancy, providing services nationally from a comprehensive network of UK locations through two complementary operating divisions.

 

Business recovery and financial advisory services

 

Begbies Traynor is the UK's leading independent business recovery practice, handling the largest number of corporate appointments, principally serving the mid-market and smaller companies.

 

BTG Advisory provides transactional support, valuations and advisory services.

 

We provide these services to businesses, professional advisors, other stakeholders, investors and financial institutions, working with all the major UK clearing banks.

 

Property services

 

Eddisons is a national firm of chartered surveyors, delivering advisory and transactional services to owners and occupiers of commercial property, investors and financial institutions. The division includes Pugh & Co, the largest regional firm of commercial property auctioneers by number of lots.

 

OPERATING REVIEW

 

Business recovery and financial advisory

 

Insolvency market

 

The number of corporate insolvencies (source: The Insolvency Service) increased by 8% in the twelve months ended 30 September 2017* to 15,572 (2016: 14,482). Corporate insolvencies in calendar years 2015 and 2016 were circa 14,700 per annum, representing the lowest level of corporate appointments since 2004.

 

*Source: The Insolvency Service quarterly insolvency statistics, excluding the one-off effect of 1,131 connected personal service companies which entered liquidation on the same date following changes to claimable expenses rules.

 

Financial performance

 

The increase in market activity levels (as noted above), combined with a success fee of £0.8m on a contingent insolvency case, increased revenue by 10% to £19.2m (2016: £17.4m). Segmental profits* increased to £4.1m (2016: £3.2m) with an improvement in operating margins to 21.4% (2016: 18.1%).

 

We have continued to develop our advisory services in the period and have recently launched BTG Advisory, which brings together our restructuring, financial advisory, corporate finance, forensic and investigation teams to operate as one national team.

 

The number of people employed in the division has increased to 342 as at 31 October 2017 from 337 at the start of the financial year.  We retain the capacity to deliver growth in revenue and profits from our existing team in the event of a further increase in activity levels.

 

We have maintained our market share and remain the leading corporate appointment taker by volume. In the second half, we expect the division to perform broadly in line with the first half, excluding the benefit of the contingent fees.

 

* See note 2

 

Property services

 

Revenue decreased to £6.8m (2016: £7.1m) as anticipated, due to a one-off advisory fee of £0.4m which benefitted the comparative period. Operating costs increased to £5.5m (2016: £5.1m) due to the full year impact of prior year acquisitions, investment in new people and increased share-based payment charges.

 

Segmental profits* were £1.3m (2016: £2.0m) with operating margins of 19.7% (2016: 28.3%).

 

As noted above, we have continued to invest in the division and in the period have recruited a new team in Liverpool providing valuation and agency services operating from the group's existing office, which we anticipate will benefit future years. The number of people employed in the division has increased to 177 as at 31 October 2017 from 170 at the start of the financial year and 164 in October 2016.

 

We continue to seek opportunities to invest in the division through senior recruitment, in addition to seeking further acquisitions. These growth initiatives will develop both our service offering and geographical coverage. In the second half, we anticipate trading to continue at least at current levels.

 

* See note 2

 

FINANCE REVIEW

 

Financial summary

 

 

2017

Restated

2016

 

£'000

£'000

 

 

 

Revenue

26,016

24,454

Operating profit (before transaction costs and amortisation)

3,134

2,969

Interest costs

(256)

(472)

Adjusted profit before tax

2,878

2,497

Transaction costs

(1,029)

(329)

Amortisation of intangible assets arising on acquisitions

(895)

(1,291)

Profit before tax

954

877

Tax

(570)

(346)

Profit for the period

384

531

 

Revenue

 

Revenue in the period was £26.0m (2016: £24.5m).

 

Business recovery and financial advisory revenue increased by £1.9m, partially offset by reduced property services revenue of £0.3m.

 

Operating profit (before transaction costs and amortisation)

 

Operating profit increased to £3.1m (2016: £3.0m) with margins of 12.0% (2016: 12.1%).

 

Interest costs

 

Interest costs reduced to £0.3m (2016: £0.5m), as a result of the group's reduced borrowing costs following the refinancing in November 2016.

                     

Transaction costs

 

Transaction costs in the period were £1.0m (2016: £0.3m) comprising:

 

·      acquisition costs of £nil (2016: £0.1m);

·      deemed remuneration charges of £0.7m (2016: £0.6m);

·      charge relating to the put and call option over Begbies Traynor (London) LLP of £0.3m (2016: £nil), offset by:

·      gain on acquisition of £nil (2016: £0.4m).

 

Amortisation of intangible assets arising on acquisitions

 

Amortisation costs decreased to £0.9m (2016: £1.3m).

 

Tax

 

The tax charge for the period was £0.6m (2016: £0.3m) based on the expected tax rate for the full year.

 

Earnings per share ('EPS')

 

EPS*, adjusted for the net of tax impact of amortisation and transaction costs were 2.0p (2016: 1.8p).

 

Basic and diluted earnings per share were 0.3p (2016: 0.5p).

 

* See reconciliation in note 5

 

Cash flows

 

Cash generated by operations (before interest and tax payments) in the period was £4.9m (2016: £2.2m). Tax payments in the period were £0.4m (2016: £0.7m). Interest payments were £0.2m (2016: £0.4m).

 

Cash outflows from investing activities were £0.3m (2016: £2.2m). Capital expenditure was £0.2m (2016: £0.1m). Deferred payments relating to prior year acquisitions were £0.1m (2016: £0.5m). Acquisition payments were £nil (2016: £1.6m, net of cash acquired).

 

Financing cash outflows were £2.6m (2016: £1.6m). During the period we reduced the level of drawn debt under our banking facilities by £2.0m (2016: £1.0m). Dividend payments were £0.6m (2016: £0.6m).

 

Financing

 

Net borrowings reduced to £6.9m at 31 October 2017 (Apr 2017: £10.3m, Oct 16: £12.2m), with gearing of 12% (Apr 17: 18%, Oct 16: 21%) and significant headroom within the committed banking facilities. During the period, all bank covenants were comfortably met and the group remains in a strong financial position. Interest cover* was 12.2 times (2016: 6.3 times).

 

The group's banking facilities are unsecured, mature on 31 August 2021 and comprise a £25m committed revolving credit facility and a £5m uncommitted acquisition facility.

 

* Before amortisation and transaction costs

 

Net assets

 

At 31 October 2017 net assets were £56.5m (2016: £58.6m) and are analysed as follows:

 

 

 

31 Oct 2017

 

 

30 Apr 2017

 

Restated

31 Oct 2016

 

£m

 

£m

 

£m

 

 

 

 

 

 

Non-current assets

58.9

 

60.0

 

61.3

Current assets

28.8

 

29.8

 

33.6

Net borrowings

(6.9)

 

(10.3)

 

(12.2)

Current tax

(1.2)

 

(0.8)

 

(1.0)

Other liabilities

(23.1)

 

(20.6)

 

(23.1)

 

 

 

 

 

 

Net assets

56.5

 

58.1

 

58.6

    

Ric Traynor                                                                          Nick Taylor

Executive chairman                                                           Group finance director

12 December 2017                                                            12 December 2017

 

Statement of comprehensive income

 

 

 

 

 

 

 

Six months ended

Restated

Six months ended 

 

Year ended

 

 

31 October 2017

31 October 2016

30 April 2017

 

 

(unaudited)

(unaudited)

(audited)

 

Note

£'000

£'000

£'000

Revenue

 

26,016

24,454

49,685

Direct costs

 

(14,659)

(13,739)

(28,130)

Gross profit

 

11,357

10,715

21,555

Other operating income

 

132

186

397

Administrative expenses

 

(10,279)

(9,552)

(20,309)

Operating profit before amortisation and transaction costs

 

3,134

2,969

5,627

Transaction costs

4

(1,029)

(329)

(1,545)

Amortisation of intangible assets arising on acquisitions

 

(895)

(1,291)

(2,439)

Operating profit

 

1,210

1,349

1,643

Finance costs

3

(256)

(472)

(1,001)

Profit before tax

 

954

877

642

Tax

 

(570)

(346)

(429)

Profit for the period from continuing operations

 

384

531

213

Discontinued operations

 

 

 

 

Loss for the period from discontinued operations

 

-

-

(476)

Profit (loss) for the period

 

384

531

(263)

Other comprehensive income

 

 

 

 

Exchange differences on translation of foreign operations

 

-

-

2

Total comprehensive income for the period

 

384

531

(261)

Earnings per share

 

From continuing operations

 

 

 

 

Basic and diluted

 

0.3p

0.5p

0.2p

From continuing and discontinued operations

 

 

 

 

Basic and diluted

5

0.3p

0.5p

(0.2)p

All of the profit and comprehensive income for the period is attributable to equity holders of the parent

Consolidated statement of changes in equity

 

 

 

 

 

 

 

For the six months ended 31 October 2017 (unaudited)

Share

Share

Merger

Translation

Retained

Total

 

capital

premium

reserve

reserve

earnings

equity

 

£'000

£'000

£'000

£'000

£'000

£'000

At 1 May 2017

5,640

23,258

17,584

-

11,618

58,100

Profit for the period

-

-

-

-

384

384

Other comprehensive income:

 

 

 

 

 

 

Exchange differences on translation of foreign operations

-

-

-

-

-

-

Total comprehensive income for the period

-

-

-

-

384

384

Dividends

-

-

-

-

(2,356)

(2,356)

Credit to equity for equity-settled share-based payments

-

-

-

-

161

161

Shares issued

28

349

-

-

(212)

165

At 31 October 2017

5,668

23,607

17,584

-

9,595

56,454

 

For the six months ended 31 October 2016 (unaudited)

Share

Share

Merger

Translation

Retained

Total

 

capital

premium

reserve

reserve

earnings

equity

 

£'000

£'000

£'000

£'000

£'000

£'000

At 1 May 2016 as previously reported

5,611

23,042

17,584

(2)

13,446

59,681

Restatement

-

-

-

-

549

549

At 1 May 2016 restated

5,611

23,042

17,584

(2)

13,995

60,230

Profit for the period as restated

-

-

-

-

531

531

Other comprehensive income:

 

 

 

 

 

 

Exchange differences on translation of foreign operations

-

-

-

-

-

-

Total comprehensive income for the period

-

-

-

-

531

531

Dividends

-

-

-

-

(2,335)

(2,335)

Credit to equity for equity-settled share-based payments

-

-

-

-

125

125

Shares issued

1

11

-

-

-

12

At 31 October 2016

5,612

23,053

17,584

(2)

12,316

58,563

 

For the year ended 30 April 2017 (audited)

Share

Share

Merger

Translation

Retained

Total

 

capital

premium

reserve

reserve

earnings

equity

 

£'000

£'000

£'000

£'000

£'000

£'000

At 1 May 2016

5,611

23,042

17,584

(2)

13,446

59,681

Restatement

-

-

-

-

549

549

At 1 May 2016 restated

5,611

23,042

17,584

(2)

13,995

60,230

Loss for the year

-

-

-

-

(263)

(263)

Other comprehensive income:

 

 

 

 

 

 

Exchange differences on translation of foreign operations

-

-

-

2

-

2

Total comprehensive income for the year

-

-

-

2

(263)

(261)

Dividends

-

-

-

-

(2,335)

(2,335)

Credit to equity for equity-settled share-based payments

-

-

-

-

431

431

Shares issued

29

216

-

-

(210)

35

At 30 April 2017

5,640

23,258

17,584

-

11,618

58,100

The merger reserve arose on the formation of the group in 2004.

Consolidated balance sheet

 

 

 

 

 

 

31 October 2017 (unaudited)

Restated

31 October 2016

(unaudited)

 

30 April 2017 (audited)

 

£'000

£'000

£'000

Non-current assets

 

 

 

Intangible assets

57,548

59,591

58,471

Property, plant and equipment

1,397

1,677

1,498

 

58,945

61,268

59,969

Current assets

 

 

 

Trade and other receivables

28,818

33,642

29,761

Cash and cash equivalents

8,069

4,823

6,715

 

36,887

38,465

36,476

Total assets

95,832

99,733

96,445

Current liabilities

 

 

 

Trade and other payables

(16,427)

(15,797)

(13,585)

Current tax liabilities

(1,231)

(997)

(843)

Borrowings

-

(7,000)

-

Provisions

(458)

(613)

(755)

 

(18,116)

(24,407)

(15,183)

Net current assets

18,771

14,058

21,293

Non-current liabilities

 

 

 

Trade and other payables

(671)

-

(335)

Borrowings

(15,000)

(10,000)

(17,000)

Provisions

(352)

(711)

(418)

Deferred tax

(5,239)

(6,052)

(5,409)

 

(21,262)

(16,763)

(23,162)

Total liabilities

(39,378)

(41,170)

(38,345)

Net assets

56,454

58,563

58,100

Equity

 

 

 

Share capital

5,668

5,612

5,640

Share premium

23,607

23,053

23,258

Merger reserve

17,584

17,584

17,584

Translation reserve

-

(2)

-

Retained earnings

9,595

12,316

11,618

Equity attributable to owners of the company

56,454

58,563

58,100

 

 

Consolidated cash flow statement

 

 

 

 

 

 

 

Six months ended 31

October 2017 (unaudited)

Six months ended 31 October 2016 (unaudited)

 

Year ended

30 April 2017 (audited)

 

Note

£'000

£'000

£'000

Cash flows from operating activities

 

 

 

 

Cash generated by operations

7

4,912

2,190

7,974

Income taxes paid

 

(352)

(701)

(1,462)

Interest paid

 

(248)

(429)

(919)

Net cash from operating activities

 

4,312

1,060

5,593

Investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(151)

(72)

(289)

Purchase of intangible fixed assets

 

(61)

(8)

(8)

Deferred consideration payments in the period

 

(122)

(539)

(1,144)

Acquisition of businesses

 

-

(1,627)

(1,773)

Net cash from investing activities

 

(334)

(2,246)

(3,214)

Financing activities

 

 

 

 

Dividends paid

 

(640)

(637)

(2,335)

Proceeds on issue of shares

 

16

12

37

Repayment of loans

 

(2,000)

(1,000)

(1,000)

Net cash from financing activities

 

(2,624)

(1,625)

(3,298)

Net increase (decrease) in cash and cash equivalents

 

1,354

(2,811)

(919)

Cash and cash equivalents at beginning of period

 

6,715

7,634

7,634

Cash and cash equivalents at end of period

 

8,069

4,823

6,715

1.     Basis of preparation and accounting policies

(a) Basis of preparation

 

The half year condensed consolidated financial statements do not include all of the information and disclosures required for full annual financial statements and should be read in conjunction with the group's annual financial statements as at 30 April 2017, which have been prepared in accordance with IFRSs as adopted by the European Union.

 

This condensed consolidated half year financial information does not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006. Statutory accounts for the year ended 30 April 2017 were approved by the board of directors on 10 July 2017 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

 

The directors have reviewed the financial resources available to the group and have concluded that the group is a going concern. This conclusion is based upon, amongst other matters, a review of the group's financial projections for a period of twelve months following the date of this announcement, together with a review of the cash and committed borrowing facilities available to the group.  Accordingly, the going concern basis has been used in preparing these half year condensed consolidated financial statements.

 

The condensed consolidated financial statements for the six months ended 31 October 2017 have not been audited nor subject to an interim review by the auditors.  IAS 34 'Interim financial reporting' is not applicable to these half year condensed consolidated financial statements and has therefore not been applied.

 

(b) Significant accounting policies

 

The accounting policies adopted in preparation of the half year condensed consolidated financial statements are consistent with those followed in the preparation of the group's annual financial statements for the year ended 30 April 2017.

 

(c) Prior period restatement

 

As disclosed in the group's statutory accounts for the year ended 30 April 2017, the group updated its accounting in respect of the acquisition of subsidiaries and businesses where the consideration payable requires post-acquisition service obligations to be performed by the selling shareholders. 

 

The net impact of these adjustments was a £549,000 credit to opening reserves at 1 May 2016 and a £307,000 credit to the consolidated statement of comprehensive income in the six months to 31 October 2016.  The group's KPI's of adjusted profit before tax and adjusted EPS were not impacted by this restatement. There were no restatements to reported cashflows.

 

The impact on each line item on the primary financial statements is shown in the table below:

 

 

As reported

31 October

Adjustments

31 October

Restated

31 October

 

2016

2016

2016

 

£'000

£'000

£'000

Consolidated income statement

 

 

 

Transaction costs

(692)

363

(329)

Finance costs

(499)

27

(472)

Tax

(263)

(83)

(346)

Profit for the year from continuing operations

224

307

531

 

 

 

 

Basic earnings per share

 

 

 

From continuing operations

0.2p

0.3p

0.5p

 

 

 

 

Consolidated balance sheet

 

 

 

Total assets

100,946

(1,213)

99,733

Total liabilities

(43,239)

2,069

(41,170)

Total shareholders funds

57,707

856

58,563

 

2.     Segmental analysis by class of business

 

Six months ended 31 October 2017 (unaudited)

Six months ended 31 October 2016 (unaudited)

 

Year ended 30 April 2017 (audited)

 

£'000

£'000

£'000

Revenue

 

 

 

Business recovery and advisory

19,246

17,360

36,231

Property

6,770

7,094

13,454

 

26,016

24,454

49,685

Operating profit before amortisation and transaction costs

 

 

 

Business recovery and advisory

4,113

3,150

7,353

Property

1,337

2,006

2,900

Shared and central costs

(2,316)

(2,187)

(4,626)

 

3,134

2,969

5,627

 

3.     Finance costs

 

 

Six months ended 31 October 2017 (unaudited)

Restated

Six months ended 31 October 2016 (unaudited)

 

 

Year ended 30 April 2017 (audited)

 

£'000

£'000

£'000

Interest on bank loans and overdrafts

256

472

760

Unwinding of discount on deferred consideration liabilities

-

-

16

Interest costs

256

472

776

Refinancing costs

-

-

225

 

256

472

1,001

 

4.     Transaction costs

 

 

Six months ended 31 October 2017 (unaudited)

Restated

Six months ended 31 October 2016 (unaudited)

 

 

Year ended 30 April 2017 (audited)

 

£'000

£'000

£'000

Deemed remuneration

662

607

1,420

Acquisition costs

32

73

141

Gain on acquisition

-

(351)

(351)

Charge relating to the put and call option over Begbies Traynor (London) LLP

335

-

335

 

1,029

329

1,545

 

5.     Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

 

 

Six months ended 31 October 2017 (unaudited)

Restated

Six months ended 31 October 2016 (unaudited)

 

 

Year ended 30 April 2017 (audited)

 

£'000

£'000

£'000

Earnings

 

 

 

Profit for the period from continuing operations attributable to equity holders

384

531

213

Loss from discontinued operations attributable to equity holders

-

-

(476)

Profit (loss) for the period attributable to equity holders

384

531

(263)

 

 

31 October 2017 (unaudited)

31 October 2016 (unaudited)

30 April 2017 (audited)

 

Number

number

number

Number of shares

 

 

 

Weighted average number of ordinary shares for the purposes of basic earnings per share

 

108,352,224

 

106,202,986

 

107,246,497

Effect of dilutive potential ordinary shares:

 

 

 

 Share options

3,169,599

2,125,437

1,688,849

 Contingent shares

1,354,582

1,496,426

1,642,313

Weighted average number of ordinary shares for the purposes of diluted earnings per share

 

112,876,405

 

109,824,849

 

110,577,659

 

 

 

Six months ended 31 October 2017 (unaudited)

Six months ended 31 October 2016 (unaudited)

 

Year ended 30 April 2017 (audited)

Basic earnings (loss) per share from

Pence

pence

pence

Continuing operations

0.3

0.5

0.2

Discontinued operations

-

-

(0.4)

 

0.3

0.5

(0.2)

 

The following additional earnings per share figures are presented as the directors believe they provide a better understanding of the trading position of the group:

 

 

Six months ended 31

October 2017 (unaudited)

Restated

Six months ended 31 October 2016 (unaudited)

 

 

Year ended 30 April 2017 (audited)

 

£'000

£'000

£'000

Earnings

 

 

 

Profit for the period attributable to equity holders

384

531

213

Amortisation of intangible assets arising on acquisitions

895

1,291

2,439

Transaction costs

1,029

329

1,545

Refinancing costs

-

-

225

Tax effect of above items

(170)

(370)

(875)

Adjusted earnings

2,138

1,781

3,547

 

 

Six months ended 31

October 2017 (unaudited)

Six months ended 31 October 2016 (unaudited)

 

Year ended 30 April 2017 (audited)

 

pence

pence

pence

Adjusted basic earnings per share

2.0

1.8

3.3

Adjusted diluted earnings per share

1.9

1.7

3.2

  

6.     Dividends

The interim dividend of 0.7p (2016: 0.6p) per share (not recognised as a liability at 31 October 2017) will be payable on 10 May 2018 to ordinary shareholders on the register at the close of business on 13 April 2018.  The final dividend of 1.6p per share as proposed in the 30 April 2017 financial statements and approved at the group's AGM was paid on 8 November 2017 and was recognised as a liability at 31 October 2017.

 

7.     Reconciliation to the cash flow statement

 

 

Six months ended 31 October 2017 (unaudited)

Restated

Six months ended 31 October 2016 (unaudited)

 

 

Year ended 30 April 2017 (audited)

 

£'000

£'000

£'000

Profit (loss) for the period

384

531

(263)

Adjustments for:

 

 

 

Tax

570

346

311

Finance costs

256

472

1,001

Amortisation of intangible assets

984

1,378

2,613

Depreciation of property, plant and equipment

252

381

769

Deemed remuneration

662

607

1,420

Charge relating to the put and call option over Begbies Traynor (London) LLP

335

-

335

Gain on acquisition

-

(351)

(351)

Loss on disposal of property, plant and equipment

-

5

13

Loss on disposal of discontinued operations

-

-

594

Share-based payment expense

161

125

431

Decrease in provisions

(364)

(397)

(549)

Operating cash flows before movements in working capital

3,240

3,097

6,324

Decrease in receivables

918

452

3,179

Increase (decrease) in payables

754

(1,359)

(1,529)

Cash generated by operations

4,912

2,190

7,974

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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