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Norman Broadbent PLC   -  NBB   

Half-year Report

Released 07:00 29-Sep-2017

RNS Number : 1738S
Norman Broadbent PLC
29 September 2017
 



 

 

Norman Broadbent plc

("Norman Broadbent" or "the Company" or "the Group")

Interim Results

 

Norman Broadbent plc (AIM: NBB) - a leading provider of Talent Acquisition & Advisory Services, comprising Board and Executive Search, Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive-level Recruitment Solutions today announces its unaudited interim results for the six months ended 30 June 2017.

 

Highlights

 

·      Phase One of the turnaround completed; Phase Two of the turnaround underway

·      New Senior Leadership Team appointed across all NB brands

·      New fee-earning hires ahead of plan and contributing 

·      Gary Browning appointed as a Senior Advisor to the Board

·      Losses significantly reduced from the six months to 31 December 2016

·      New Group CFO in final stage of appointment

·      Equity placing to raise £1.23m to be shortly announced

 

Mike Brennan, CEO of Norman Broadbent, said:

 

"The company has completed Phase One of its restructuring and is now well positioned to move forward with confidence and anticipates announcing the details of an equity placing later this morning as we move into Phase Two of our plan".

 

 

For further information please contact:

 

Norman Broadbent plc                                                                                   

Mike Brennan/Frank Carter                                                                               020 7484 0000

 

WH Ireland Limited

Adrian Hadden/ Jessica Cave/ Alex Bond                                                      020 7220 1666

 

 

 

 

 

 

 

 

 

 

Notes to Editors

Norman Broadbent plc is a leading provider of Talent Acquisition & Advisory Services. These comprise Board and Executive Search, Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive-level Recruitment Solutions.

 

For further information visit www.normanbroadbent.com 



CEO Review:

 

As set out in table below in the 6 months to 30 June 2017 the Group incurred an operating loss of £667,000 (2016: loss £62,000) on turnover of £3,292,000 (2016: £3,366,000).

 

This comparison belies the very substantial progress made by the Group in the period both in the completion of the first, defensive consolidation, phase of its business plan and the improvement in trading as compared to the 6 months to 31 December 2016 which had resulted in an operating loss of £1,161,000 on turnover of £2,295,000.

 

In the period we have seen significant changes in personnel, proposition and process across the businesses. The changes in personnel reflect the filling of important senior leadership positions, the replacement of underperforming consultants and newer, more robust internal recruitment process.  The more diverse portfolio of offerings  has enabled  an encouraging increase in cross selling by each of our businesses, and clients have responded well to the development of enhanced service lines and a more integrated offering. 

 

We now have a more diverse offering, with varied revenue streams and less reliance on executive search, a service line which continues to be an important offering. We are now positioning ourselves to move into Phase 2, the Growth Phase, of the strategic plan which will seek to scale up our businesses and move forward.

 

Summarised Financial Results:

 

The table below summarises the results for the Group.

 


Six months to 30 June

2017

Re-Presented

Six months to 30 June

2016

Year ended

31 Dec

2016


£000's

£000's

£000's

Continuing operations








Revenue

3,292

3,366

5,661

Cost of sale

(696)

(424)

(735)





Gross profit

2,596

2,942

4,926

Operating expenses

(3,263)

(3,004)

(6,149)





Group operating profit / (loss)

(667)

(62)

(1,223)





Net finance cost

(12)

(33)

(54)





(Loss) / profit before tax

(679)

(95)

(1,277)

Income tax

-

-

-





(Loss) / profit from discontinued operation

-

(11)

279





(Loss) / profit after tax

(679)

(106)

(998)

 

 

Norman Broadbent Executive Search ("NBES")

 

NBES underwent substantial restructuring during the first 6 months of 2017. This has included significant investment in new hires, including the appointment of Tim Hammett as Managing Partner and the departure of a number of underperforming legacy consultants. The process of dealing with legacy departures is now complete, and the new consultant hires made in Q1/Q2 2017 are ahead of plan. As a result of the restructure and subsequent reinvestment, revenues fell to £1,430,000 from £2,351,000 in H1 2016, resulting in a loss of £566,000 (Profit £329,000). Encouragingly, NBES has had its highest new retainer wins so far this year in the month of September. 

 

Norman Broadbent Interim Management ("NBIM")

 

NBIM was re-launched at the end of 2016 with the hiring of Angela Hickmore as Managing Director. While still an early stage business, the Board is pleased with its progress to date. The business now has four senior billing consultants, three of which were hired in H1 2017. Gross revenues increased to £807,000 from £402,000 in H1 2016, resulting in a loss of £113,000 (Profit £13,000). This loss reflects an anticipated time lag from the hiring of new consultants to their generation of revenue.

 

Norman Broadbent Leadership Consulting ("NBLC") 

 

NBLC has performed exceptionally well in H1 2017. Revenues increased to £662,000 from £199,000, resulting in a profit before tax of £365,000 (Loss £4,000). As announced on the 4th July 2017, NBLC won a significant contract with a FTSE 250 company to provide executive assessment, research and insight services over a three-year period (we expect the benefit of this to begin to materialise in Q4 2017).

 

NB Solutions ("NBS")

 

NBS has performed broadly in line with the previous reporting period. While revenues declined by 5% to £393,000 from £414,000 in H1 2016, resulting in a loss of £62,000 (Loss £32,000), the revenues for the 6 months to June 2017 were more than double the £163,000 earned in the second half of 2016, reflecting the impact of the restructuring that took place in June 2016 .  Going forward, management focus for NBS is to increase headcount in order to grow the business to adequate scale.

 

Research & Insight ("R&I")

 

Although not a separate reporting line, we have continued to invest in R&I capabilities with strategic hiring. The R&I team now not only serves our own internal requirements, but provides complementary client services to our other businesses.

 

Financial Position

 

Equity shareholders' funds were £1,755,000 as at 30 June 2017 (£2,434,000 at 31 December 2016), with net current assets of £154,000 (£825,000 at 31 December 2016). Cash and cash equivalents at 30 June 2017 amounted to £304,000 (£963,000 at 31 December 2016), reflecting continued investment and restructuring in all businesses. The balance on the Group's revolving invoice discounting facility was £833,000 (£444,000 at 31 December 2016), reflecting a trade receivables balance of £1,104,000 (£634,000 at 31 December 2016).

 

Net cash outflow from operations was £1,024,000 (£797,000 at 31 December 2016) and net cash inflow from financing activities amounted to £304,000 (£1,404,000 at 31 December 2016).

 

Appointment of Gary Browning

 

The Board was very pleased to announce the appointment of Gary Browning as a Consultant and Strategic Adviser in August 2017. Gary's role will be to provide advice and support in the areas of strategic opportunities, market and competitive developments and to assist in the execution of Norman Broadbent's growth plan. Gary Browning's appointment brings the benefit of over 20 years' relevant sector experience to the Company. Gary joined Penna Consulting plc, the international human resources consulting group, in 2002. He was Chief Executive from 2005, when the business was capitalised at approximately £25.0m, until 2016 when the business was sold to ADECCO S.A. for £105m.

Board Changes

James Webber, Group CFO, informed the Board of his intention to resign from the Company in August. An offer has been extended to a potential candidate. On behalf of the Board I would also like to thank James for his significant contribution to Norman Broadbent over the last 4 years.

Outlook

 

The business is now positioned to move onto Phase Two of its business plan which aims to build on the work carried out to date, upscale all of our businesses and become self-funding and profitable. In order to fund Phase Two, the company has been in discussion with its existing institutional shareholders and a number of new investors and anticipates shortly announcing the details of a proposed placing to raise up to £1.23m.

 

Mike Brennan

Group CEO

 

 



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six month period ended 30 June 2017

 

 

 

Note

 

Six months ended 30 June 2017

(unaudited)

 

Re-Presented

Six months ended 30 June 2016

(unaudited)

 

Year ended

31 December 2016

(audited)



£000

£000

£000

Continuing operations





Revenue


3,292

3,366

5,661






Cost of Sales


(696)

(424)

(735)






Gross profit

 


2,596

2,942

4,926

Operating expenses


(3,263)

(3,004)

(6,149)






Group operating profit / (loss)


(667)

(62)

(1,223)






Net finance cost


(12)

(33)

(54)

Exceptional Items


-

-

-

Loss on disposal of investment


-

-

-






Loss on ordinary activities before income tax


(679)

(95)

(1,277)






Income tax expense


-

-

-

Loss from continuing operations  


(679)

(95)

(1,277)






Discontinued operations





Profit/(Loss) from discontinued operation

6

-

(11)

279






Loss for the period


(679)

(106)

(998)






Other comprehensive income










Foreign currency translation differences - foreign operations


-

2

-






Total comprehensive loss


(679)

(104)

(998)






Loss attributable to:










Owners of the Company


(651)

(108)

(1,304)

Non-controlling interests


(28)

2

306

Loss for the period


(679)

(106)

(998)






Total comprehensive loss attributable to:










Owners of the Company


(651)

(106)

(1,304)

Non-controlling interests


(28)

2

306

Total comprehensive loss for the period


(679)

(104)

(998)






Loss per share

4




 - Basic


(1.56p)

(0.60)p

(5.36)p

 - Diluted


(1.56p)

(0.60)p

(5.36)p






Adjusted loss per share





 - Basic


(1.53p)

(0.60)p

(5.32)p

 - Diluted


(1.53p)

(0.60)p

(5.32)p






Loss per share - continuing operations

4




 - Basic


(1.56p)

(0.55)p

(5.25)p

 - Diluted


(1.56p)

(0.55)p

(5.25)p






Adjusted loss per share - continuing operations





 - Basic


(1.53p)

(0.55)p

(5.21)p

 - Diluted


(1.53p)

(0.55)p

(5.21)p

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2017

 


Note

As at

 30 June

2017

As at

30 June

2016

As at

31 December 2016

 



(unaudited)


(unaudited)


(audited)



£000


£000


£000








Non-current assets







Intangible assets


1,363


1,363


1,363

Property, plant and equipment


60


62


68

Trade and other receivables


201


-


234

Deferred tax


69


69


69

Total non-current assets


1,693


1,494


1,734








Current assets







Trade and other receivables


1,935


1,707


1,347

Cash and cash equivalents


304


263


963

Total current assets


2,239


1,970


2,310








Total assets


3,932


3,464


4,044








Current Liabilities







Trade and other payables


(1,208)


(1,243)


(1,041)

Provisions

5

(125)


-


-

Bank overdraft and interest bearing loans


(833)


(645)


(444)

Total current liabilities


(2,166)


(1,888)


(1,485)








Net current assets


73


82


825








Non-current liabilities







Provisions

Loan Note                 

5

-

-


(125)

(350)


(125)

-








Total liabilities


(2,166)


(2,363)


(1,610)








Total assets less total liabilities


1,766


1,101


2,434








Equity







Issued share capital


6,143


5,901


6,143

Share premium account


12,685


10,699


12,685

Retained earnings


(17,034)


(15,203)


(16,394)

Equity attributable to owners of the Company


1,794


1,397


2,434








Non-controlling interests


(28)


(296)


-








Total equity


1,766


1,101


2,434

 

 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six month period ended 30 June 2017

 


Attributable to owners of the Company


CONSOLIDATED GROUP








Share Capital

Share Premium

Retained Earnings

Total Equity

Non-controlling interests

Total Equity


£000

£000

£000

£000

£000

£000








Balance at 1 January 2016

5,901

10,699

(15,101)

1,499

(294)

1,205

Loss for the period

-

-

(104)

(104)

(2)

(106)

Adjustment for discontinued operation

-

-

-

-

-

-

Total other comprehensive income

-

-

2

2

-

2

Total comprehensive income for the period

-

-

(102)

(102)

(2)

(104)

Transactions with owners of the Company, recognised directly in equity:





Issue of ordinary shares

-

-

-

-

-

-

Credit to equity for share based payments

-

-

-

-

-

-

Total transactions with owners of the Company, recognised directly in equity

-

-

-

-

-

-

Balance at 30 June 2016

5,901

10,699

(15,203)

1,397

(296)

1,101








Balance at 1 July 2016

5,901

10,699

(15,203)

1,397

(296)

1,101

Loss for the period

-

-

(1,200)

(1,200)

308

(892)

Total other comprehensive income

-

-

(2)

(2)

-

(2)

Total comprehensive income for the period

-

-

(1,202)

(1,202)

308

(894)

Transactions with owners of the Company, recognised directly in equity:














Issue of ordinary shares

242

1,986

-

2,228

-

2,228

Credit to equity for share based payments

-

-

11

11

-

11








Total transactions with owners of the Company, recognised directly in equity

242

1,986

11

2,239

-

2,239

Changes in ownership interest in subsidiaries

Disposal of non-controlling interests with change of control





(12)

(12)

Total transactions with owners of the company

242

1,986

11

2,239

(12)

2,227

Balance at 31 December 2016

6,143

12,685

(16,394)

2,434

-

2,434








Balance at 1 January 2017

6,143

12,685

(16,394)

2,434

-

2,434

Loss for the period

-

-

(651)

(651)

(28)

(679)

Total other comprehensive income

-

-

-

-

-

-

Total comprehensive income for the period

-

-

(651)

(651)

(28)

(679)

Transactions with owners of the Company, recognised directly in equity:







Credit to equity for share based payments



11

11

-

11

Balance at 30 June 2017

6,143

12,685

(17,034)

1,794

(28)

1,766



CONSOLIDATED STATEMENT OF CASH FLOW

For the six month period ended 30 June 2017

 







Notes

Six months ended 30 June 2017 (unaudited)

Six months ended 30 June 2016 (unaudited)

 Year ended 31 December 2016

(audited)



£000

£000

£000

 

Net cash used in operating activities

 

(i)

 

(1,024)

 

119

 

(797)






Cash flows from investing activities and servicing of finance





Net finance cost


(12)

(33)

(54)

Payments to acquire tangible fixed assets


(11)

-

(24)

Disposal of discontinued operation, net of cash disposed of

6

-

-

(15)






 

Net cash used in investing activities


 

(23)

 

(33)

 

(93)





Cash flows from financing activities





Repayment of borrowings


-

-

(350)

Net cash inflows from equity placing


-

-

2,228

(Decrease)/increase in invoice discounting


388

(273)

(474)

 

Net cash from financing activities


 

388

 

(273)

 

1,404





Net (decrease)/increase in cash and cash equivalents


(659)

(187)

514

Net cash and cash equivalents at beginning of period


963

448

448

Effects of exchange rate changes on cash balances held in foreign currencies


-

 

2

 

1

 

 

Net cash and cash equivalents at end of period

 

304

 

263

 

963





Analysis of net funds





Cash and cash equivalents


304

263

963

Borrowings due within one year


(832)

(645)

(444)






 

Net funds


 

(528)

 

(382)

 

519





Note (i)





Reconciliation of operating profit to net cash from operating activities


Six months ended 30 June 2017 (unaudited)

Six months ended 30 June 2016 (unaudited)

     Year ended 31 December 2016

(audited)

 

Operating loss from continued operations


 

(62)

 

(914)

Operating loss from discontinued operations


-

(11)

(30)

Depreciation/ impairment of property, plant and equipment


19

20

38

Share based payment charge


11

-

11

Increase in trade and other receivables


(555)

465

871

Increase/(decrease) in trade and other payables


168

(293)

(464)

Profit on sale of investment


-

-

(309)

 

Net cash used in operating activities

 

 

 

(1,024)

 

119

 

(797)






 



NOTES TO THE FINACIAL STATEMENTS

 

1.         ACCOUNTING POLICIES

1.1       Basis of preparation

The financial information set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Group's statutory financial statements for the year ended 31 December 2016, prepared under International Financial Reporting Standards (IFRS), have been filed with the Registrar of Companies. The auditor's report on those statements was unqualified.

 

The interim financial information for the six months ended 30 June 2017, has been prepared in accordance with the AIM Rules for Companies. The Group has not elected to apply IAS 34 'Interim Financial Reporting'. The principal accounting policies used in preparing the interim results are those the Group expects to apply in its financial statements for the year ending 31 December 2017 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2016. The interim financial statements have not been audited.

 

1.2       Basis of consolidation and business combinations

Group financial statements consolidate those of the Company and of the following subsidiary undertakings:

Principal Group investments:


Country of incorporation or registration and operation

 

 

 

Principal activities

 

Description and proportion of shares held by the Company






Norman Broadbent Executive Search Ltd

 


England and Wales

Executive Search

100 per cent ordinary shares

Norman Broadbent Overseas Ltd


England and Wales

Executive Search

100 per cent ordinary shares

Norman Broadbent Leadership Consulting Ltd

 


England and Wales

Assessment, Leadership Consulting and Talent Mgmt.

 

100 per cent ordinary shares

Norman Broadbent Solutions Ltd (formerly AGP NB Ltd )

 


England and Wales

Executive Recruitment Solutions

100 per cent ordinary shares

Norman Broadbent Interim Management Ltd


England and Wales

Senior Interim Management  

100 per cent ordinary shares






Norman Broadbent (Ireland) Ltd *


Republic of Ireland

Dormant

100 per cent ordinary shares

Bancomm Ltd


England and Wales

Dormant

100 per cent ordinary shares






 

* 100 per cent of the issued share capital of this company is owned by Norman Broadbent Overseas Ltd.

 

 

2.         copies of the unaudited interim report

 

Copies of this report are available on request from the Company's registered office at 12 St James's Square, London, SW1Y 4LB and are also available on the Company's website at www.normanbroadbent.com.

 

 

3.         SEGMENTAL ANALYSIS

Management has determined the operating segments based on the reports reviewed regularly by the Board for use in deciding how to allocate resources and in assessing performance. The Board considers Group operations from both a class of business and geographic perspective. 

Each class of business derives its revenues from the supply of a particular recruitment related service, from retained executive search through to executive assessment and coaching. Business segment results are reviewed primarily to operating profit level, which includes employee costs, marketing, office and accommodation costs and appropriate recharges for management time.

Group revenues are primarily driven from UK operations, however when revenue is derived from overseas business the results are presented to the Board by geographic region to identify potential areas for growth or those posing potential risks to the Group.

 

i)          Class of Business:

The analysis by class of business of the Group's turnover and profit before taxation is set out below:




BUSINESS SEGMENTS

Six months ended 30 June 2017

 

 

NBES

£000

 

 

NBLC

£000

 

 

NBS

£000

 

 

NBIM

£000

 

Disc.

Operation

£000

 

Un

allocated

£000

 

 

Total

£000

 

Revenue

1,430

662

393

807

-

-

3,292

Cost of sales

(11)

(193)

(20)

(472)

-

-

(696)

Gross profit

1,419

469

373

335

-

-

2,596






-

-


Operating expenses

(1,963)

(102)

(432)

(444)

-

(303)

(3,244)

Other operating income

-

-

-

-

-

-

-

Finance costs

(6)

(2)

(1)

(3)

-

-

(12)

Depreciation and amort.

(16)


(2)

(1)

-

-

(19)

Restructuring costs

-

-

-

-

-

-

-

Exceptional items

-

-

-

-

-

-

-

Loss on disposal of investment

-

-

-

-

-

-

-

Profit/(Loss) before tax

(566)

365

(62)

(113)

-

(303)

(679)









 




BUSINESS SEGMENTS

Six months ended 30 June 2016

 

 

NBES

£000

 

 

NBLC

£000

 

 

NBS

£000

 

 

NBIM

£000

 

Disc.

Operation

£000

 

Un

allocated

£000

 

 

Total

£000

 

Revenue

2,351

199

414

402

 

273

-

3,639

Cost of sales

(55)

(36)

(2)

(330)

(1)

-

(424)

Gross profit

2,296

163

412

72

272

-

3,215









Operating expenses

(1,943)

(167)

(533)

(57)

(282)

(287)

(3,269)

Other operating income

-

-

-

-

-

-

-

Finance costs

(10)

-

(2)

(2)

-

(19)

(33)

Depreciation and amort.

(14)

-

(3)

-

(2)

-

(19)

Restructuring costs

-

-

-

-

-

-

-

Exceptional items

-

-

-

-

-

-

-

Loss on disposal of investment

-

-

-

-

-

-

-

Profit/(Loss) before tax

329

(4)

(126)

13

(12)

(306)

(106)









 

 

 




BUSINESS SEGMENTS

Year ended 31 December 2016

 

 

NBES

£000

 

 

NBLC

£000

 

 

NBS

£000

 

 

NBIM

£000

 

Disc.

Operation

£000

 

Un

allocated

£000

 

 

Total

£000

 

Revenue

4,005

293

577

786

 

470

-

6,131

Cost of sales

(92)

(41)

(7)

(595)

-

-

(735)

Gross profit

3,913

252

570

191

470

-

5,396









Operating expenses

(4,195)

(308)

(918)

(127)

(497)

(566)

(6,611)

Other operating income

-

-

-

-

-

-

-

Finance costs

(17)

-

(3)

(4)

-

(30)

(54)

Depreciation and amort.

(29)

-

(6)

-

(3)

-

(38)

Restructuring costs

-

-

-

-

-

-

-

Exceptional items

-

-

-

-

-

-

-

Profit on disposal of investment

-

-

-

-

309

-

309

Profit/(Loss) before tax

(328)

(56)

(357)

60

279

(596)

(998)









 

 

ii)         Revenue and gross profit by geography:

 

 



Revenue £'000

Gross Profit £'000



Six Months Ended

Year Ended

Six Months Ended

Year Ended



30 June

2017

30 June

2016

31 Dec

2016

30 June

2017

30 June

2016

31 Dec

2016

United Kingdom


3,292

3,605

6,030

2,596

3,180

5,295

Rest of the World


-

34

101

-

34

101

Total


3,292

3,639

6,131

2,596

3,214

5,396

 

 

4.         earnings PER ORDINARY SHARE

 

i)          Basic earnings per share:

 

This is calculated by dividing the profit attributable to equity holders of the company by the weighted average number of ordinary shares in issue during the period:

 

 

 


Six months ended 30 June 2017

Six months

ended

30 June 2016

Year ended

 31 December

 2016



(unaudited)

(unaudited)

(audited)






(Loss)/profit attributable to shareholders


(651,000)

(106,000)

(1,304,000)






Weighted average number of ordinary shares


41,633,320

   17,416,487

24,316,626

 

 

ii)             Diluted earnings per share:

 

This is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The company has issued share options which are potentially dilutive. A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average annual market share price of the company's shares) based on the monetary value of the subscription rights attached to the outstanding options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

 

 

 

Six months ended 30 June 2017

Six months ended 30 June 2016

Year ended 31 December 2016



(unaudited)

(unaudited)

(audited)






(Loss)/profit attributable to shareholders


(651,000)

(106,000)

(1,304,00)






Weighted average no. of ordinary shares


41,633,320

17,416,487

24,316,626

- assumed conversion of share options


-

-

-






Weighted average number of ordinary shares for diluted earnings per share


41,633,320

17,416,487

24,316,626

 

 

iii)        Adjusted earnings per share

 

Adjusted earnings per share has also been calculated in addition to the basic and diluted earnings per share and is based on earnings adjusted to eliminate charges for share based payments. It has been calculated to allow shareholders to gain a clearer understanding of the trading performance of the Group.

 


Six months ended 30 June

 2017

Six months ended 30 June 2016

Year ended 31 December 2016






 

 

 

£000

Basic  pence per share

Diluted pence per share

 

 

 

£000

Basic  pence per share

Diluted pence per share

 

 

 

£000

Basic  pence per share

Diluted pence per share

Basic earnings










(Loss)/Profit after tax

(651)

(1.56)

(1.56)

(106)

(0.60)

(0.60)

(1,304)

(5.36)

(5.36)

Adjustment










Share based payment charge

11

0.03

0.03

-

-

-

11

0.04

0.04











Adjusted earnings

(640)

(1.53)

(1.53)

(106)

(0.60)

(0.60)

(1,293)

(5.32)

(5.32)











 

5.            PROVISIONS

 


Six months ended 30 June 2017

£000

Six months ended 30 June 2016

£000

Year ended 31 December 2016

£000





Balance at beginning of period

125

125

125

Provisions made during the period

-

-

-





Balance at end of period

125

125

125

Non-current


125

125

Current

125

-

-


125

125

125

 

On the 6 March 2013 the Company signed a ten year lease with a five year break for its main office in London. On signing the new lease the Company inherited the office fit-out from the previous tenant. Under the terms of the new lease the Company is obliged to return vacant possession to the landlord with the office returned to its original state. The Company had the present cost of the future works required to return the office to its original state valued by an independent firm of advisors and this liability of £125,000 is provided for in the financial period. In July 2017, the Company exercised the lease break option.

 

 

 

6.            DISCONTINUED OPERATION

 

On 31 December 2016, the Group sold its 51% stake in Social Media Search Limited. The comparative consolidated statement of comprehensive income has been re-presented to show the discontinued operation separately from continued operations. Under the terms of the Sale and Purchase Agreement ("SPA"), Norman Broadbent will receive a cash consideration of £325,000 for Social Media Search. As at the end of June, the company has received £32,502 which equates to 6 payments of £5,417.                                                                                                                                               

Six months ended 30 June 2017

(unaudited)

Six months ended 30 June 2016

(unaudited)

Year ended

31 December 2016

(audited)


£000

£000

£000

Results from discontinued operation




Revenue

-

272

470

Operating Expenses

-

(283)

(500)

Results from operating activities

-

(11)

(30)





Exceptional items

-

-

655

Tax

-

-

-

Results from operating activities, net of tax

-

(11)

625





Minority Interest

-

2

(306)





(Loss)/Profit for the period

-

(9)

319













The profit in 2016 from discontinued operations disclosed within the Consolidated Income Statement of £278,900 consists of the operating loss of £(30,000) and the profit on disposal of the subsidiary of £309,900. The exceptional item, relating to the write off of intercompany loan accounts, has been eliminated on consolidation within the Consolidated Income Statement.

 

7.            RELATED PARTY TRANSACTIONS

 

 

 

i)          Purchase of services:

Six months ended 30 June 2017

£000

Six months ended 30 June 2016

£000

Year ended 31 December 2016

£000





Brian Stephens & Company Limited

12

12

24

Connecting Corporates Limited

-

7

25





Total

12

19

49

 

Brian Stephens & Company Limited invoiced the Group for the directors' fees and corporate finance services of B Stephens (£10,000) and business related travel costs of £2,000. B Stephens is a director of Brian Stephens & Company Limited.

 

During the prior period the Group acquired research services from Connecting Corporates Limited of £7,000. The Group owned a 51 per cent stake in Connecting Corporates Limited.

All related party expenditure took place via "arms-length" transactions.

 

 

 

ii)         Period-end payables arising from the purchases of services:

Six months ended 30 June 2017

£000

Six months ended 30 June 2016

£000

Year ended 31 December 2016

£000





Brian Stephens & Company Limited

2

2

4

Connecting Corporates Limited

-

30

-





Total

2

32

4

 

The payables to related parties arise from purchase transactions and are due one month after date of purchase. The payables bear no interest.


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