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Norman Broadbent PLC   -  NBB   

Interim Results for six months ended 30 June 2019

Released 07:00 26-Sep-2019

RNS Number : 6907N
Norman Broadbent PLC
26 September 2019
 

 26 September 2019

 

Norman Broadbent plc

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

Interim Results 

 

The Board (the "Board") of Norman Broadbent plc (AIM: NBB) - a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services (Board & Leadership Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Talent Solutions) - is pleased to announce the Group's unaudited interim results for the six months ended 30 June 2019

 

Highlights

 

·      The Group posted a small profit before tax

·      Group revenue increased by £0.6m (+13%) to £5.2m

·      Net Fee Income (NFI) increased by £0.2m (+7%) to £3.5m

·      Group Operating Profit was £55,000 against a Group Operating Loss of £234,000 in H1 2018

·      PBT was £16,000 against a loss of £265,000 in H1 2018

·      Interim Management NFI for H1 2019 was £900,000, an increase of £101,000 from H1 2018 (+13%)

·      Following a change in leadership, Solutions H1 2019 NFI was £901,000, an increase of £283,000 (+46%) on the prior six months, and the best ever NFI and PBT results

·      New and enhanced Working Capital Facility agreed with Bibby Financial Services

 

Mike Brennan, Norman Broadbent Group CEO, said:

 

"I am pleased to report that the first six months of 2019 have seen continued positive top line growth. We also recorded a small profit before tax - the first for many years.  The return to profitability in H1 is an extremely important milestone for the Group. Having posted a loss of £0.3m in H1 2018, and a loss of £0.5m in H2 2018, I am pleased with the significant improvement in H1 2019 which saw the Group return to profit.

 

These results validate our strategy of building a more diversified business supplying high value, more relevant services to clients. As we build a disruptive, market leading Professional Services business, we continue to attract, and invest in, highquality Talent keen to join us on our journey.

 

On achieving this milestone, I would like to again thank my colleagues for their continued hard work, innovation and commitment, our clients for placing their continued trust in us, and our supportive shareholders"

 

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

For further information please contact:

 

Norman Broadbent plc                                                                                  

Mike Brennan/Will Gerrand                                                                               020 7484 0000

 

WH Ireland Limited

Adrian Hadden/Darshan Patel

                                                                                                                                020 7220 1666

 

About Norman Broadbent plc:

 

Norman Broadbent plc (AIM: NBB) is a leading Professional Services firm focusing on Talent Acquisition & Advisory Services. Since its formation nearly 40 years ago, NBB has developed a portfolio of complementary service centered on Board & Leadership & Executive Search, Senior Interim Management, Research & Insight, Leadership Consulting & Assessment, and executive level Recruitment Solutions. Unusually, NBB is one of the few businesses of its type offering clients an integrated Executive Search and Interim Management offering.  This innovative approach gives clients access to business critical executive-level Talent, meeting both short and longer-term needs.

 

 

 

CEO Review:

 

In the six months to 30 June 2019, the Group posted an operating profit of £55,000 (2018: loss £234,000) on turnover of £5,260,000 (2018: £4,667,000). The achievement of operating profit for the first six months is a major landmark in our strategic journey.

 

The Group has changed from a predominantly single service executive search business to an enterprise providing our clients with an integrated range of complementary, progressive, and sophisticated offerings geared specifically to their needs. This not only helps us serve our clients better, but also enables us to differentiate ourselves in what is becoming an increasingly transactional/commoditised traditional executive search market. This also helps build a more balanced Group with complementary, high-quality recurring annuity type revenue streams.

 

The rebalancing of our service mix saw our established Executive Search business, (including Insight and Research revenue), contribute 46% of Net fee Income (56% in the year to 31 December 2018) with Interim and Solutions both growing and increasing their percentage share of Group Net Fee Income. This continued overall growth across the Group, and the introduction of new services has created a more relevant and balanced business. 

 

Our aim is to continue strategically scaling all of the business units via the development of our existing resources and, where appropriate, the selective recruitment of high quality Talent to the Group. As we continue to grow, we will maintain our focus on innovation, client-service, enhancing our established brand, the growth of high-quality recurring revenues, and a return to profitability.

 

Summarised Financial Results:

 

The table below summarises the results for the Group.

 

 

Six months to 30 June

2019

Six months to 30 June

2018

Year ended

31 Dec

2018

 

£000's

£000's

£000's

Continuing operations

 

 

 

 

 

 

 

Revenue

5,260

4,667

9,414

Cost of sale

(1,738)

(1,377)

 (2,770)

 

 

 

 

Gross profit / Net Fee Income

3,522

3,290

6,644

Operating expenses

(3,467)

(3,524)

(7,308)

 

 

 

 

 

 

 

 

Group operating profit / (loss)

55

(234)

(664)

 

 

 

 

Net finance cost

(39)

(31)

(77)

 

 

 

 

Profit / (Loss) before tax

16

(265)

(741)

Income tax

-

-

-

 

 

 

 

Profit / (Loss) after tax

16

(265)

(741)

 

 

Norman Broadbent Executive Search ("NBES")

 

Net Fee Income for H1 2019 was £1,612,000, a decrease of £163,000 from H1 2018 (-9%).  NBES made a loss of £71,000 for H1 2019 compared with a loss of £18,000 in H1 2018.

 

Research & Insight ("R&I")

 

NBES revenues shown above include those generated by our R&I Practice where we continue to invest. The R&I Practice not only serves our own internal requirements, but also provides complementary services to our other businesses, and increasingly to external clients who buy our stand-alone Research & Insight services.   

 

Norman Broadbent Interim Management ("NBIM")

 

NBIM continues to grow. Net Fee Income for H1 2019 was £900,000, an increase of £101,000 from H1 2018 (+13%), and up £215,000 (+31%) from the underlying H2 2018 Net Fee income. We have continued to invest into NBIM and our aim is to selectively and carefully scale as and when appropriate. Profit in H1 was £13,000 (£118,000 in H1 2018).

 

NB Solutions ("NBS")

 

NBS Net Fee Income for H1 2019 was £901,000, an increase of £283,000 from H1 2018 (+46%). NBS posted a Profit before Tax of £258,000 compared with a profit of £66,000 in H1 2018. Following a change in leadership within NBS, this part of the business posted its "best ever" results in H1 2019 and indeed NBS H1 Net Fee Income was 56% up as compared to that achieved in H2 2018.

 

Norman Broadbent Leadership Consulting ("NBLC") 

 

NBLC Net Fee Income for H1 2019 was £108,000, an increase of £10,000 (+10%) from H1 2018. NBLC reported a loss of £30,000 for H1 2019 compared to a loss of £44,000 in H1 2018.

 

Financial Position

 

Equity shareholders' funds were £1,294,000 as at 30 June 2019 (£1,268,000 at 31 December 2018), with net current liabilities of (£418,000) (net current liabilities £454,000 at 31 December 2018). Cash and cash equivalents at 30 June 2019 amounted to £258,000 (£684,000 at 31 December 2018, £260,000 at 30 June 2018).

 

Net cash outflow from operations was £529,000 (Net cash inflow from operation was £354,000 at 31 December 2018) and net cash inflow from financing activities amounted to £160,000 (£103,000 outflow at 31 December 2018).

 

Outlook

 

These are positive results and evidence our progression. We remain confident that we will see continued top line and Net Fee Income growth, along with an improved bottom line for 2019. I would like to thank my colleagues for their hard work, innovation and commitment, our clients for placing their continued trust in us, and our supportive shareholders. 

 

Michael J. Brennan

Group Chief Executive Officer

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six month period ended 30 June 2019

 

 

 

 

Note

 

Six months ended 30 June 2019

(unaudited)

 

Six months ended 30 June 2018

(unaudited)

 

Year ended

31 December 2018

(audited)

 

 

£000

£000

£000

Continuing operations

 

 

 

 

Revenue

 

5,260

4,667

9,414

 

 

 

 

 

Cost of Sales

 

(1,738)

(1,377)

(2,770)

 

 

 

 

 

Gross profit / Net Fee Income

 

 

3,522

3,290

6,644

Operating expenses

 

(3,467)

(3,524)

(7,308)

 

 

 

 

 

Group operating Profit / (Loss)

 

55

(234)

(664)

 

 

 

 

 

Net finance cost

 

(39)

(31)

(77)

 

 

 

 

 

Profit / (Loss) on ordinary activities before income tax

 

16

(265)

(741)

 

 

 

 

 

Income tax expense

 

-

-

-

 

Profit / (Loss) for the period

 

16

(265)

(741)

 

 

 

 

 

Other comprehensive income

 

-

-

-

 

 

 

 

 

 

 

 

 

 

Total comprehensive Profit / (Loss)

 

16

(265)

(741)

 

 

 

 

 

Profit / (Loss) attributable to:

 

 

 

 

 

 

 

 

 

Owners of the Company

 

13

(294)

(763)

Non-controlling interests

 

3

29

22

Profit / (Loss) for the period

 

16

(265)

(741)

 

 

 

 

 

Total comprehensive profit / (loss) attributable to:

 

 

 

 

 

 

 

 

 

Owners of the Company

 

13

(294)

(763)

Non-controlling interests

 

3

29

22

Total comprehensive profit / (loss) for the period

 

16

(265)

(741)

 

 

 

 

 

Profit /(Loss) per share

4

 

 

 

 - Basic

 

0.02p

(0.55p)

(1.42)p

 - Diluted

 

0.02p

(0.55p)

(1.42)p

 

 

 

 

 

Adjusted profit/ (loss) per share

 

 

 

 

 - Basic

 

0.04p

(0.53p)

(1.38)p

 - Diluted

 

0.04p

(0.53p)

(1.38)p

 

 

 

 

 

           

 

 

  

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2019

 

 

Note

As at

 30 June

2019

As at

30 June

2018

As at

31 December 2018

 

 

 

(unaudited)

 

(unaudited)

 

(audited)

 

 

£000

 

£000

 

£000

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Intangible assets

 

1,363

 

1,363

 

1,363

Property, plant and equipment

 

127

 

174

 

155

Trade and other receivables

 

153

 

168

 

135

Deferred tax

 

69

 

69

 

69

Total non-current assets

 

1,712

 

1,774

 

1,722

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Trade and other receivables

 

2,732

 

2,597

 

2,175

Cash and cash equivalents

 

258

 

260

 

684

Total current assets

 

2,990

 

2,857

 

2,859

 

 

 

 

 

 

 

Total assets

 

4,702

 

4,631

 

4,581

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

Trade and other payables

 

(1,959)

 

(1,599)

 

(2,025)

Provisions

5

(240)

 

(125)

 

(240)

Loan Note

 

(233)

 

(300)

 

(272)

Bank overdraft and interest bearing loans

 

(976)

 

(872)

 

(776)

Total current liabilities

 

(3,408)

 

(2,896)

 

(3,313)

 

 

 

 

 

 

 

Net current assets / (liabilities)

 

(418)

 

(39)

 

(454)

 

 

 

 

 

 

 

Total liabilities

 

(3,408)

 

(2,896)

 

(3,313)

 

 

 

 

 

 

 

Total assets less total liabilities

 

1,294

 

1,735

 

1,268

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

Issued share capital

 

6,266

 

6,266

 

6,266

Share premium account

 

13,706

 

13,706

 

13,706

Retained earnings

 

(18,644)

 

(18,207)

 

(18,667)

Equity attributable to owners of the Company

 

1,328

 

1,765

 

1,305

 

 

 

 

 

 

 

Non-controlling interests

 

(34)

 

(30)

 

(37)

 

 

 

 

 

 

 

Total equity

 

1,294

 

1,735

 

1,268

               

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six month period ended 30 June 2019

 

 

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 2018

6,266

13,706

(17,923)

2,049

(59)

1.990

 

Loss for the period

-

-

(294)

(294)

29

(265)

 

Adjustment for discontinued operation

-

-

-

-

-

-

 

Total other comprehensive income

-

-

-

-

-

-

 

Total comprehensive income for the period

-

-

(294)

(294)

(29)

(265)

 

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

 

 

 

 

 

Issue of ordinary shares

-

-

-

-

-

-

 

Credit to equity for share based payments

-

-

10

10

-

10

 

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

 

-

-

-

        -

-

-

 

Balance at 30 June 2018

6,266

13,706

(18,207)

1,765

(30)

1,735

 

 

 

 

 

 

 

 

 

Balance at 1 July 2018

6,266

13,706

(18.207)

1,765

(30)

1,735

 

Loss for the period

-

-

(469)

(469)

(7)

(476)

 

Total other comprehensive income

-

-

-

-

-

-

 

Total comprehensive income for the period

-

-

(469)

(469)

(7)

(476)

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue of ordinary shares

-

-

-

-

-

-

 

Credit to equity for share based payments

-

-

9

9

-

9

 

 

 

 

 

 

 

 

 

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

-

-

9

9

-

9

 

Changes in ownership interest in subsidiaries

 

-

-

-

        -

-

-

 

Total transactions with owners of the Company

-

-

-

        -

-

-

 

Balance at 31 December 2018

6,266

13,706

(18,667)

1,305

(37)

1,268

 

 

 

 

 

 

 

 

 

Balance at 1 January 2019

6,266

13,706

(18,667)

1,305

(37)

1,268

 

Profit for the period

-

-

13

13

3

16

 

Total other comprehensive income

-

-

-

-

-

-

 

Total comprehensive income for the period

-

-

13

13

3

16

 

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

 

 

 

 

 

 

 

 

Credit to equity for share based payments

-

-

10

10

-

10

 

Balance at 30 June 2019

6,266

13,706

(18,644)

1,328

(34)

1,294

 

 

 

 

 

 

 

 

 

                 
 

CONSOLIDATED STATEMENT OF CASH FLOW

For the six month period ended 30 June 2019

 

 

 

 

 

 

 

Notes

Six months ended 30 June 2019 (unaudited)

Six months ended 30 June 2018 (unaudited)

 Year ended 31 December 2018

(audited)

 

 

£000

£000

£000

 

Net cash generated / (used) in operating activities

 

(i)

 

(528)

 

(255)

 

354

 

 

 

 

 

Cash flows from investing activities and servicing of finance

 

 

 

 

Net finance cost

 

(39)

(31)

(77)

Payments to acquire tangible fixed assets

 

(20)

(152)

(168)

 

Net cash used in investing activities

 

 

(59)

 

(183)

 

(245)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Repayment of borrowings

 

(39)

-

(28)

Net cash inflows from equity placing

 

-

-

-

Increase / (decrease)  in invoice discounting

 

200

20

(75)

 

Net cash from financing activities

 

 

161

 

20

 

(103)

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

 (426)

(418)

6

Net cash and cash equivalents at beginning of period

 

684

678

678

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

 

-

 

-

 

-

 

 

Net cash and cash equivalents at end of period

 

258

 

260

 

684

 

 

 

 

 

Analysis of net funds

 

 

 

 

Cash and cash equivalents

 

258

260

684

Borrowings due within one year

 

(1,209)

(1,171)

(1,048)

 

 

 

 

 

 

Net funds

 

 

(951)

 

(911)

 

(364)

 

 

 

 

 

Note (i)

 

 

 

 

Reconciliation of operating profit to net cash from operating activities

 

Six months ended 30 June 2019 (unaudited)

Six months ended 30 June 2018 (unaudited)

     Year ended 31 December 2018

(audited)

 

Operating profit / (loss) from continued operations

       

 

55

 

(234)

 

(664)

Depreciation/ impairment of property, plant and equipment

 

46

23

60

Share based payment charge

 

10

10

19

Increase in trade and other receivables

 

(573)

(477)

(22)

Increase/(decrease) in trade and other payables

 

(66)

423

846

Increase/(decrease) in Provisions

 

-

-

115

 

Net cash generated / (used) in operating activities

 

 

 

(528)

 

(255)

 

354

 

 

 

 

 

 

 

NOTES TO THE FINANCIAL 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 2018, 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 2019, 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 2019 and are unchanged from those disclosed in the Group's Annual Report for the year ended 31 December 2018. 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, coaching and Talent Mgmt.

 

100 per cent ordinary shares

Norman Broadbent Solutions Ltd

 

 

England and Wales

Mezzanine Level Search

100 per cent ordinary shares

Norman Broadbent Interim Management Ltd

 

England and Wales

Interim Management  

75 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 10th Floor, Portland House, Bressenden Place, London, SW1E 5BH 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 2019

 

 

NBES

£000

 

 

NBLC

£000

 

 

NBS

£000

 

 

NBIM

£000

 

Un

allocated

£000

 

 

Total

£000

 

 

 

Revenue

1,617

130

901

2,611

-

5,259

 

 

Cost of sales

(5)

(22)

-

(1,711)

-

(1,738)

 

 

Gross profit / Net Fee Income

1,612

108

901

900

-

 

3,521

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

(1,631)

(136)

(640)

(879)

(134)

(3,420)

 

 

Other operating income

-

-

-

-

-

-

 

 

Finance costs

(8)

(2)

(2)

(7)

(20)

(39)

 

 

Depreciation and amort.

(44)

 

(1)

(1)

-

(46)

 

 

Profit/(Loss) before tax

(71)

(30)

258

13

(154)

16

 

 

 

 

 

 

 

 

 

 

 

Six months ended 30 June 2018

 

 

NBES

£000

 

 

NBLC

£000

 

 

NBS

£000

 

 

NBIM

£000

 

Un

allocated

£000

 

 

Total

£000

 

 

 

Revenue

1,778

161

618

2,110

-

4,667

 

 

Cost of sales

(3)

(63)

-

(1,311

-

(1,377)

 

 

Gross profit / Net Fee Income

1,775

98

618

799

-

 

3,290

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

(1,760)

(139)

(548)

(675)

(379)

(3,501)

 

 

Other operating income

-

-

-

-

-

-

 

 

Finance costs

(11)

(3)

(3)

(6)

(8)

(31)

 

 

Depreciation and amort.

(22)

 

(1)

-

-

(23)

 

 

Profit/(Loss) before tax

(18)

(44)

66

118

(387)

(265)

 

 

 

 

 

 

 

 

 

 

Year ended 31 December 2018

 

 

NBES

£000

 

 

NBLC

£000

 

 

NBS

£000

 

 

NBIM

£000

 

Un

allocated

£000

 

 

Total

£000

 

 

Revenue

3,737

345

1,196

4,136

-

9,414

 

Cost of sales

(12)

(106)

-

(2,652)

-

(2,770)

 

Gross profit / Net Fee Income

3,725

239

1,196

1,484

-

6,644

 

 

 

 

 

 

 

 

 

Operating expenses

(3,908)

(272)

(1,115)

(1,384)

(569)

(7,248)

 

Other operating income

-

-

-

-

-

-

 

Finance costs

(57)

-

(2)

(1)

(35)

(60)

 

Depreciation and amort.

(20)

(5)

(5)

(12)

-

(77)

 

Profit/(Loss) before tax

(260)

(38)

74

87

(604)

(741)

 

 

 

 

 

 

 

 

 

                                                     

 

 

 

ii)         Revenue and gross profit by geography:

 

 

 

 

Revenue £'000

Gross Profit £'000

 

 

Six Months Ended

Year Ended

Six Months Ended

Year Ended

 

 

30 June

2018

30 June

2018

31 Dec

2018

30 June

2018

30 June

2018

31 Dec

2018

United Kingdom

 

4,902

4,486

8,671

3,165

3,119

5,901

Rest of the World

 

357

181

743

356

171

743

Total

 

5,259

4,667

9,414

3,521

3,290

6,644

 

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 2019

Six months

ended

30 June 2018

Year ended

 31 December

 2018

 

 

(unaudited)

(unaudited)

 

 

 

 

 

Profit / (loss) attributable to shareholders

 

13,000

(294,000)

 

 

 

 

 

Weighted average number of ordinary shares

 

53,885,570

53,885,570

53,885,570

 

 

 

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 2019

Six months ended 30 June 2018

Year ended 31 December 2018

 

 

(unaudited)

(unaudited)

(audited)

 

 

 

 

 

Profit / (loss) attributable to shareholders

 

13,000

(294,000)

(763,000)

 

 

 

 

 

Weighted average no. of ordinary shares

 

53,885,570

53,885,570

53,885,570

- assumed conversion of share options

 

-

-

-

 

 

 

 

 

Weighted average number of ordinary shares for diluted earnings per share

 

53,885,570

53,885,570

53,885,570

 

 

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

 2019

Six months ended 30 June 2018

Year ended 31 December 2018

 

 

 

 

 

 

 

 

£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

13

0.02

0.03

(294)

(0.55)

(0.55)

(763)

(1.42)

(1.42)

Adjustment

 

 

 

 

 

 

 

 

 

Share based payment charge

10

0.02

0.02

10

0.02

0.02

19

0.04

0.04

 

 

 

 

 

 

 

 

 

 

Adjusted earnings

23

0.04

0.05

(284)

(0.53)

(0.53)

(744)

(1.38)

(1.38)

 

 

 

 

 

 

 

 

 

 

                     

 

 

5.            PROVISIONS

 

 

Six months ended 30 June 2019

£000

Six months ended 30 June 2018

£000

Year ended 31 December 2018

£000

 

 

 

 

Balance at beginning of period

240

125

125

Provisions made during the period

-

-

115

 

 

 

 

Balance at end of period

240

125

240

 

Non-Current

 

-

 

-

 

-

Current

240

125

240

 

240

125

240

 

The Company moved offices on the 30th of April 2018. Discussions are underway with the Landlord of St James Square to finalise the dilapidation position, The Group expects to have all negotiations concluded shortly.

 

 

6.            RELATED PARTY TRANSACTIONS

 

i)          Purchase of services:

Six months ended 30 June 2019

£000

Six months ended 30 June 2018

£000

Year ended 31 December 2018

£000

 

 

 

 

Brian Stephens & Company Limited

12

12

20

 

 

 

 

Total

12

12

20

 

Brian Stephens & Company Limited invoiced the Group for the directors' fees and corporate finance services of B Stephens (£12,000) and business related travel costs of £2,000. B Stephens is a director of Brian Stephens & Company 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 2019

£000

Six months ended 30 June 2018

£000

Year ended 31 December 2018

£000

 

 

 

 

Brian Stephens & Company Limited

2

4

2

 

 

 

 

Total

2

4

2

 

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


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Interim Results for six months ended 30 June 2019 - RNS