TIDMMVW
RNS Number : 2306S
Mavinwood PLC
07 September 2010
Under embargo until 7:00am on 7 September 2010
Mavinwood Plc
("Mavinwood" or "the Company")
Interim results for the six months ended 30 June 2010
+------------------------------------------------+----------+-----------+
| Financial highlights | | Restated |
| | 2010 | 2009 |
+------------------------------------------------+----------+-----------+
| Continuing operations: | | |
| | | |
+------------------------------------------------+----------+-----------+
| Revenue | GBP13.4m | GBP14.1m |
| | | |
+------------------------------------------------+----------+-----------+
| Operating profit before amortisation and | GBP1.4m | GBP0.9m |
| impairment of intangible | | |
| assets and exceptional items (EBITA) | | |
| | | |
+------------------------------------------------+----------+-----------+
| Operating profit/(loss) | GBP1.0m | GBP(0.2)m |
| | | |
+------------------------------------------------+----------+-----------+
| Profit/(loss) before tax | GBP0.4m | GBP(2.1)m |
| | | |
+------------------------------------------------+----------+-----------+
| Basic profit/(loss) per share from continuing | 1.12p | (17.26)p |
| operations | | |
| | | |
+------------------------------------------------+----------+-----------+
| Adjusted profit/(loss) before tax* | GBP0.7m | GBP(0.3)m |
| | | |
+------------------------------------------------+----------+-----------+
| Adjusted earnings per share* | 2.67p | 2.26p |
| | | |
+------------------------------------------------+----------+-----------+
| Total basic earnings/(loss) per share | 1.08p | (29.32)p |
| | | |
+------------------------------------------------+----------+-----------+
| Net bank debt | GBP12.8m | GBP17.8m |
| | | |
+------------------------------------------------+----------+-----------+
* before discontinued operations, amortisation of intangible assets and
exceptional items
Charles Skinner, Chief Executive, commented:
"I am pleased to report a return to profitability of the Group, following the
change of management in June 2009. We now have a stable, profitable business
with a sensible balance sheet. This provides an excellent platform for the
continuing development of our data management activities and other activities in
the support services sector."
Enquiries:
Mavinwood plc
Charles Skinner, Chief Executive
07966 234075
Cenkos
Nick Wells/Elizabeth Bowman
020 7397 8900
Threadneedle PR
John Coles
020 7653 9848
CHIEF EXECUTIVE'S REVIEW
SUMMARY
I am pleased to report a return to profitability of the Group, following the
change of management in June 2009. Trading has been robust in our document
storage business with operating profit up by 25%. Our document scanning business
has operated profitably despite extremely taxing market conditions. Peter Cox,
our damp treatment and timber proofing business, has made a small contribution
compared to a GBP423,000 loss in the first half of 2009. Head Office costs have
reduced by over one-third. The closure of ABS, which recorded a loss of GBP0.8m
in the first half of 2009, has removed a drain on company profits and resources.
Interest charges have fallen from GBP1.15m to GBP0.6m and will reduce further
following the conversion of GBP8m of subordinated debt into equity in April
2010.
The acquisition of Datacare announced this morning will further strengthen and
increase the profitability of our document storage activities. Our balance sheet
has been strengthened by the GBP8m equity issue in April 2010.
We now have a stable, profitable business with a sensible balance sheet. This
provides an excellent platform for the continuing development of our data
management activities and other activities in the support services sector.
RESULTS
The operating profit from continuing operations was GBP1,024,000 (2009 loss:
GBP214,000). Profit before tax before amortisation of intangible assets and
exceptional items for the six months ended 30th June 2010 was GBP714k (2009:
loss (GBP290k) on sales of GBP13.4m (2009: GBP14.1m). Adjusted basic earnings
per share for the period were 2.67p (2009: 2.26p).
PROFIT BEFORE TAX
+-----------------------------------------+---------+----------+----------+----------+----------+
| | Six | | Restated | | Year |
| | months | | Six | | ended |
| | ended | | months | | 31 |
| | 30 | | ended | | December |
| | June | | 30 June | | 2009 |
| | 2010 | | 2009 | | |
+-----------------------------------------+---------+----------+----------+----------+----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Continuing operations | | | | | |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Restore | 1,699 | | 1,361 | | 2,832 |
+-----------------------------------------+---------+----------+----------+----------+----------+
| DCS | 132 | | 681 | | 314 |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Peter Cox | 19 | | (423) | | (345) |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Central costs | (498) | | (762) | | (1,339) |
+-----------------------------------------+---------+----------+----------+----------+----------+
| | 1,352 | | 857 | | 1,462 |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Share based payments credit | - | | - | | 1147 |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Impairment of intangible assets | - | | - | | (5,000) |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Exceptional items - operating costs | (135) | | (952) | | (1,183) |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Amortisation of intangible assets | (193) | | (119) | | (257) |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Operating profit /(loss) | 1,024 | | (214) | | (3,831) |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Net finance costs | (638) | | (1,147) | | (1,984) |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Exceptional items - finance arrangement | - | | (750) | | (1,975) |
| fee | | | | | |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Profit/(loss) before tax | 386 | | (2,111) | | (7,790) |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Share based payments credit | - | | - | | (1,147) |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Impairment of intangible assets | - | | - | | 5,000 |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Exceptional items - total | 135 | | 1,702 | | 3,158 |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Amortisation of intangible assets | 193 | | 119 | | 257 |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Adjusted profit/(loss) before tax - | 714 | | (290) | | (522) |
| continuing operations | | | | | |
+-----------------------------------------+---------+----------+----------+----------+----------+
| Discontinued activities - ABS | (7) | | (793) | | (2,609) |
+-----------------------------------------+---------+----------+----------+----------+----------+
OPERATIONS
Restore (Wansdyke), our document storage business, now trading wholly under the
Restore brand, traded robustly despite the overall economic environment. Sales
were marginally ahead year-on-year at GBP5.0m but operating profits improved by
25% to GBP1.7m with EBITDA of GBP2.0m. The operations of Restore and Wansdyke
were merged, with all administrative activities now in one place at Redhill.
This will continue to increase operational efficiency and profitability. We have
also successfully migrated all of Restore's activities onto one new IT system
with very little business disruption. Our sector-focussed sales strategy is
slowly beginning to yield results and we are developing a much broader data
management offering for our well-established customer base. The recent
acquisition of Datacare with its unique facilities at Upper Heyford in
Oxfordshire increases our geographical footprint, extends our customer base,
particularly in the pharmaceutical sector, and can be expected to increase
Restore's profits significantly.
DCS, our document scanning business, has had to negotiate extremely tough market
conditions over the last 12 months. We have a strong presence and capability in
the market but have been over-reliant on major contracts. While demand for the
digitisation of documents and for broader data management services can be
expected to grow strongly in the medium term, it can be perceived as a
discretionary spend in the short term, particularly for major projects and in
the public sector. Revenues fell year-on-year by over 40%, but we were able to
return the business to profitability, following losses in the second half of
2009, through cost-cutting. We are reducing costs further to ensure the business
operates profitably but need to retain appropriate skills to enable the business
to gear back up when demand improves.
Peter Cox, the damp-treatment and timber-roofing business which is the only
business remaining from the Group's historic repair business, has responded well
to more Group management involvement and the appointment of a new Executive
Chairman. In its seasonally weaker first half, it made a small operating profit
of GBP19,000 compared to a loss of GBP423,000 in the first half of 2009. Sales
increased marginally to GBP7.2m (2009 sales: GBP7.1m). It continues to have an
excellent product and reputation and commands attractive gross margins. It has
experienced many structural changes in recent years and has weathered the
turmoil in the construction sector. Its skilled and experienced workforce now
have the opportunity to operate from a stable base and take advantage of any
market improvement.
GROUP
Central costs for the period reduced from GBP762,000 to GBP498,000. Part of the
cost reductions in the operating companies reflected more streamlined financial
reporting structures. Head Office was relocated from St James's Square to Marble
Arch in London in February. The company's name is expected to be changed from
Mavinwood plc to Restore plc later this month.
BALANCE SHEET
Net interest payable amounted to GBP638,000 (2008: GBP1,147,000). This will fall
further as a result of the reduction in the subordinated debt, following the
conversion of GBP8.0m into equity in April. Net bank debt on 30th June 2010 was
GBP12.8m, within our banking facility of GBP17.5m. There is an additional
subordinated debt of GBP2.3m payable to Geraldton Services Inc, on which the
interest and principal are payable after the bank debt is repayable in July
2012.
DIVIDENDS
The Board does not recommend declaring an interim dividend (2009: Nil).
CASH FLOW
The net cash inflow from continuing operations before capital expenditure was
GBP1,013,000 (2009: GBP1,512,000). This inflow is after taking account of an
outflow of GBP0.6m on working capital.
Capital expenditure totalled GBP542,000 (2009: GBP1,014,000) compared to
depreciation of GBP299,000 (2009: GBP342,000). Significant expenditure
comprised the fitting out of further space in the underground storage areas at
Wansdyke and installing the industry standard IT system at Restore.
PEOPLE
The Group has undergone a difficult period with many changes. Our operating
companies have continued to operate with energy, enthusiasm and professionalism
during this period. I offer my thanks to the people in these businesses and look
forward to them sharing in the Group's future success.
OUTLOOK
Current trading is encouraging. Restore (Wansdyke) has always had strong
visibility of future earnings and we can expect their robust performance to
continue, with steadily increasing earnings, particularly following the
acquisition of Datacare. DCS's market place remains tough but we are confident
that it can show improved performance. Peter Cox's improvement in trading
continues and has started its seasonally-better second half strongly.
The Group is now stable and represents an excellent platform for growth. We have
a clear strategy to develop our data management activities both organically and
through acquisitions. Our businesses have established excellent customer
relationships over many years and we have the expertise to help these customers
manage cost-effectively the challenges presented by the explosion in the amount
and shape of the data they are holding and generating. We continue to look for
acquisitions in this exciting sector which will contribute strongly to our
profitability. There are many interesting opportunities available, particularly
of smaller well-established businesses which lack the critical mass to thrive in
unsettling market conditions.
It remains the intention of the Group to develop its activities in the broader
business-to-business support services sector as appropriate opportunities arise.
Charles Skinner
Chief Executive
7
September 2010
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2010
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| | | | Unaudited | | Unaudited | | |
| | | | | | Restated | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| | | | Six months | | Six months | | Year ended |
| | | | ended | | ended | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| | | | 30 June | | 30 June | | 31 December |
| | | | 2010 | | 2009 | | 2009 |
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| | Note | GBP'000 | | GBP'000 | | GBP'000 |
+----------+-----------------------------------+------------+----------+------------+----------+-------------+
| Continuing operations | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| Revenue | 2 | 13,382 | | 14,110 | | 26,977 |
| | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| Cost of sales | | (6,930) | | (7,608) | | (14,523) |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| Gross profit | | 6,452 | | 6,502 | | 12,454 |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| Administrative expenses | | (5,293) | | (5,764) | | (11,249) |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| Impairment of intangible assets | | - | | - | | (5,000) |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| Share based payments credit | | - | | - | | 1,147 |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| Exceptional items- operating | | (135) | | (952) | | (1,183) |
| costs | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | Total operating costs | 2 | (5,428) | | (6,716) | | (16,285) |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| Operating profit/(loss) | | 1,024 | | (214) | | (3,831) |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| Investment income | | - | | - | | 6 |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| Finance costs | | (638) | | (1,147) | | (1,990) |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| Exceptional items - finance costs | 2 | - | | (750) | | (1,975) |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | Total finance costs | | (638) | | (1,897) | | (3,959) |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| Profit/(loss) before tax | | 386 | | (2,111) | | (7,790) |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| Income tax (expense)/credit | 3 | (176) | | 501 | | 164 |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| Profit/(loss) from continuing | | 210 | | (1,610) | | (7,626) |
| operations | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | |
| Discontinued operations | | | | | | |
| Loss from discontinued operations | 2 | (7) | | (1,124) | | (2,405) |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| Profit/(loss) for the period | | 203 | | (2,734) | | (10,031) |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| Attributable to owners of the | | 203 | | (2,734) | | (10,031) |
| parent | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| Total comprehensive income for | | | | | | |
| the period attributable to owners | | 203 | | (2,734) | | (10,031) |
| of the parent | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| Earnings/(loss) per share (pence) | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | Basic | 4 | 1.08p | | (29.32)p | | (107.57)p |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| | Diluted | 4 | 1.01p | | (29.32)p | | (107.57)p |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| | | | | | | |
| Earnings/(loss) per share from | | | | | | |
| continuing operations (pence) | | | | | | |
+-----------------------------------+----------+------------+----------+------------+----------+-------------+
| | Basic | 4 | 1.12p | | (17.26)p | | (81.78)p |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
| | Diluted | 4 | 1.04p | | (17.26)p | | (81.78)p |
+----------+------------------------+----------+------------+----------+------------+----------+-------------+
Consolidated Statement of Changes in Equity
for the six months ended 30 June 2010
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| | Attributable to owners of the parent |
+----------------------+-----------------------------------------------------------------------------------------+
| | | | | | Share | | | | |
| | | | | | based | | Retained | | |
| | Share | | Share | | payments | | earnings/ | | Total |
| | capital | | premium | | reserve | | (deficit) | | equity |
| | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Balance at 1 January | 516 | | 42,396 | | 2,069 | | (29,780) | | 15,201 |
| 2009 | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Loss for the period | - | | - | | - | | (2,734) | | (10,031) |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Total comprehensive | 516 | | 42,396 | | 2,069 | | (32,514) | | 12,467 |
| income for the | | | | | | | | | |
| period | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Transactions with | - | | - | | - | | - | | - |
| owners | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Balance at 30 June | 516 | | 42,396 | | 210 | | (32,514) | | 12,467 |
| 2009 | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Balance at 1 January | 516 | | 42,396 | | 210 | | (39,118) | | 4,004 |
| 2010 | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Profit for the | - | | - | | - | | 203 | | 203 |
| period | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Total comprehensive | 516 | | 42,396 | | 210 | | (38,915) | | 4,207 |
| income for the | | | | | | | | | |
| period | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Transactions with | - | | - | | - | | - | | - |
| owners | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Issue of shares | 1,067 | | 6,933 | | - | | - | | 8,000 |
| during the period | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
| Balance at 30 June | 1,583 | | 49,329 | | 210 | | (38,915) | | 12,207 |
| 2010 | | | | | | | | | |
+----------------------+---------+----------+---------+----------+----------+--+-----------+----------+----------+
Condensed Consolidated Statement of Financial Position
At 30 June 2010
+------+--------------------+------------+----------+------------+----------+------------+
| | | Unaudited | | Unaudited | | |
+------+--------------------+------------+----------+------------+----------+------------+
| | | 30 June | | 30 June | | 31 |
| | | 2010 | | 2009 | | December |
| | | | | | | 2009 |
+------+--------------------+------------+----------+------------+----------+------------+
| | Note | GBP'000 | | GBP'000 | | GBP'000 |
+------+--------------------+------------+----------+------------+----------+------------+
| Assets | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Non-current assets | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Intangible assets | 18,512 | | 21,832 | | 18,637 |
+---------------------------+------------+----------+------------+----------+------------+
| Property, plant and | 11,683 | | 11,329 | | 11,508 |
| equipment | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Deferred tax asset | 343 | | 48 | | 343 |
+---------------------------+------------+----------+------------+----------+------------+
| | | 30,538 | | 33,209 | | 30,488 |
+------+--------------------+------------+----------+------------+----------+------------+
| Current assets | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Inventories | 136 | | 66 | | 117 |
+---------------------------+------------+----------+------------+----------+------------+
| Trade and other | 7,011 | | 5,378 | | 7,756 |
| receivables | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Cash and cash equivalents | 1,359 | | 1,517 | | 4,599 |
| | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| | | 8,506 | | 6,961 | | 12,472 |
+------+--------------------+------------+----------+------------+----------+------------+
| | - | | 4,614 | | - |
| Assets held for sale | | | | | |
| 5 | | | | | |
| | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Total assets | 39,044 | | 44,784 | | 42,960 |
+---------------------------+------------+----------+------------+----------+------------+
| | | | | | | |
+------+--------------------+------------+----------+------------+----------+------------+
| Liabilities | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Current liabilities | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Trade and other payables | (4,840) | | (5,988) | | (7,168) |
+---------------------------+------------+----------+------------+----------+------------+
| Bank overdrafts and loans | (10,188) | | (10,898) | | (10,191) |
| | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Current tax liabilities | (176) | | - | | - |
+---------------------------+------------+----------+------------+----------+------------+
| Provisions | (313) | | (313) | | (313) |
| | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| | | (15,517) | | (17,199) | | (17,672) |
+------+--------------------+------------+----------+------------+----------+------------+
| Liabilities directly | - | | (2,302) | | - |
| associated with assets | | | | | |
| classified as held for | | | | | |
| sale | | | | | |
| 5 | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| | | | | | | |
+------+--------------------+------------+----------+------------+----------+------------+
| Net current liabilities | (7,011) | | (7,926) | | (5,200) |
+---------------------------+------------+----------+------------+----------+------------+
| | | | | | | |
+------+--------------------+------------+----------+------------+----------+------------+
| Non-current liabilities | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Bank loans | (4,000) | | (8,442) | | (5,980) |
| | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Other loans | (2,326) | | - | | (10,000) |
| 6 | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Deferred tax liability | (3,750) | | (3,261) | | (3,750) |
| | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Provisions | (1,244) | | (1,113) | | (1,554) |
| | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| | | (11,320) | | (12,816) | | (21,284) |
+------+--------------------+------------+----------+------------+----------+------------+
| | 12,207 | | 12,467 | | 4,004 |
| Net assets | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| | | | | | | |
+------+--------------------+------------+----------+------------+----------+------------+
| Equity | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Called up share capital | 1,583 | | 516 | | 516 |
| 7 | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Share premium account | 49,329 | | 42,396 | | 42,396 |
+---------------------------+------------+----------+------------+----------+------------+
| Share based payments | 210 | | 2,069 | | 210 |
| reserve | | | | | |
+---------------------------+------------+----------+------------+----------+------------+
| Retained loss | (38,915) | | (32,514) | | (39,118) |
+---------------------------+------------+----------+------------+----------+------------+
| Capital and reserves | 12,207 | | 12,467 | | 4,004 |
| attributable to | | | | | |
| owners of parent | | | | | |
+------+--------------------+------------+----------+------------+----------+------------+
Condensed Consolidated Statement of Cash Flows
for the six months ended 30 June 2010
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Unaudited | | Unaudited | | |
| | | | Restated | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | Six months | | Six months | | Year ended |
| | ended | | ended | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | | 30 June | | 30 June | | 31 |
| | | 2010 | | 2009 | | December |
| | | | | | | 2009 |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+----------+----------------------------+------------+----------+------------+----------+------------+
| Cash inflow from operating activities | | | | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | Continuing operations | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Profit/ (loss) for the | 210 | | (1,610) | | (7,626) |
| | period | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Depreciation of property, | 299 | | 342 | | 590 |
| | plant and equipment | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Amortisation of intangible | 193 | | 119 | | 257 |
| | assets | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Impairment of intangible | - | | - | | 5,000 |
| | assets | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Finance costs recognised | 638 | | 1,897 | | 3,959 |
| | in profit and loss | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Income tax | 176 | | (501) | | (164) |
| | expense/(credit) | | | | | |
| | recognised in profit and | | | | | |
| | loss | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Share based payments | - | | - | | (1,147) |
| | credit | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Operating exceptional | 135 | | 952 | | 1,084 |
| | items | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Gain on disposal of | - | | - | | 1 |
| | property, plant and | | | | | |
| | equipment | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Movement in working | | | | | |
| | capital | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Increase/(decrease) in | (19) | | 189 | | 83 |
| | inventories | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Increase in trade and | 972 | | 181 | | 3,909 |
| | other receivables | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Decrease/(increase) in | (1,591) | | (57) | | 1,149 |
| | trade and other payables | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| Net cash generated | 1,013 | | 1,512 | | 7,095 |
| from continuing operations | | | | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | Discontinued operations | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Loss for the period | (7) | | (1,124) | | (2,405) |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Depreciation of property, | - | | 338 | | 34 |
| | plant and equipment | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Amortisation of intangible | - | | - | | 63 |
| | assets | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Impairment of intangible | - | | 1,576 | | - |
| | assets | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Finance costs recognised | | | | | |
| | in profit and loss | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Income tax expense | - | | 46 | | 192 |
| | recognised in profit and | | | | | |
| | loss | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Share based payments | - | | - | | (19) |
| | credit | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | (Loss)/profit on disposal | - | | (741) | | 463 |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Gain on disposal of | - | | 13 | | - |
| | property, plant and | | | | | |
| | equipment | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Movement in working | - | | | | |
| | capital | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | (Increase)/decrease in | - | | (206) | | 12 |
| | inventories | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Decrease in trade and | - | | (1,377) | | (1,771) |
| | other receivables | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Increase in trade and | - | | 516 | | 1,491 |
| | other payables | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| Net cash used | (7) | | (959) | | (1,940) |
| from discontinued operations | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
+------------------------------+------------+----------+------------+----------+------------+
| | 1,006 | | 553 | | 5,155 |
| Net cash generated from | | | | | |
| operations | | | | | |
+------------------------------+------------+----------+------------+----------+------------+
Condensed Consolidated Statement of Cash Flows (continued)
for the six months ended 30 June 2010
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Unaudited | | Unaudited | | |
| | | | Restated | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | Six months | | Six months | | Year ended |
| | ended | | ended | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | | 30 June | | 30 June | | 31 |
| | | 2010 | | 2009 | | December |
| | | | | | | 2009 |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | 1,006 | | 553 | | 5,155 |
| Net cash generated from operations | | | | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | | (451) | | | | |
| | Net finance costs | | | (1,147) | | (2,538) |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Income taxes paid | - | | 269 | | 268 |
+----------+----------------------------+------------+----------+------------+----------+------------+
| Net cash generated from /(used by) | 555 | | (325) | | 2,885 |
| operating activities | | | | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| Cash flows from investing activities | | | | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | Purchases of property, | (542) | | (1,014) | | (1,977) |
| | plant and equipment | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Contingent consideration | - | | (61) | | (61) |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Loan note receipts | - | | 43 | | - |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Sale of subsidiary, net of | - | | 17,945 | | 12,474 |
| | costs and cash disposed | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| Cash flows used in investing | (542) | | 16,913 | | 10,436 |
| activities | | | | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| Cash flows from financing activities | | | | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | Proceeds from share issue | - | | - | | - |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Repayment of borrowings | (5,000) | | (16,200) | | (19,456) |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Drawdown of indebtedness | | | | | 10,000 |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Deferred financing costs | - | | (274) | | (23) |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Increase in bank loans and | 1,747 | | 931 | | 185 |
| | overdrafts | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Finance lease principal | - | | - | | (3) |
| | repayments | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| Net cash used in financing activities | (3,253) | | (15,543) | | (9,297) |
+---------------------------------------+------------+----------+------------+----------+------------+
| | | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| Net (decrease)/increase in cash and | (3,240) | | 1,045 | | 4,024 |
| cash equivalents | | | | | |
+---------------------------------------+------------+----------+------------+----------+------------+
| | Cash and cash equivalents | 4,599 | | 575 | | 575 |
| | at start of period | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | Less: Net cash and cash | - | | (103) | | - |
| | equivalents included in | | | | | |
| | discontinued operations | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| | | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
| Cash and cash equivalents at the end | 1,359 | | 1,517 | | 4,599 |
| of period | | | | | |
+----------+----------------------------+------------+----------+------------+----------+------------+
Notes to the Consolidated Interim report
for the six months ended 30 June 2010
1 Basis of preparation
The condensed consolidated interim financial information for the half year ended
30 June 2010, which has been approved by the Board of Directors on 2 September
2010, has been prepared based on the accounting policies consistent with those
used in the financial statements for the year ended 31 December 2009 and those
expected to be applied in the financial statements for the year ended 31
December 2010.
The following Standards, which were effective for this financial period, have no
material impact on the financial statements of the Group:
- IFRS 3 (revised 2008), 'Business combinations'; The revised standard continues
to apply the acquisition method to business combinations, with some significant
changes in relation to the treatment of acquisition costs, contingent
consideration and accounting for business combinations achieved in stages. The
amendment also permits two methods for the accounting for goodwill along with
additional guidance relating to the recognition and measurement of fair values
and the assessment of whether transactions fall to be part of the business
combination.
- IAS 27 (revised 2008), 'Consolidated and separate financial statements'; the
revised standard provides guidance relating to the accounting for
non-controlling interests in loss making subsidiaries, the acquisition of
non-controlling interests and the accounting for subsidiaries when control by
the entity is lost.
- IAS 28 (amended), 'Investments in associates', and IAS 31 (amended),
'Interests in joint ventures'; the amendment provides additional guidance in
situations where significant influence or joint control is lost.
- IAS 39 (amended), 'Eligible Hedged Items'; the amendment provides further
clarification in the application guidance.
- IFRS 2 (amended), Group cash-settled Share-based Payment Transactions; the
amendment clarifies that an entity that receives goods or services in a share
based payment arrangement must account for those goods or services regardless of
which entity in the group settles the transaction.
- IFRS 1 (revised 2008), 'First-time adoption of IFRS'; additional exemptions
for first time adopters.
- IFRIC 17, Distributions of Non-cash Assets to Owners.
- IFRIC 18, Transfers of Assets to Customers.
- Annual Improvements 2009.
There were no other Standards and Interpretations which were in issue but not
effective at the date of authorisation of these financial statements that the
directors anticipate will have a material impact on the financial position or
performance of the Group.
The results and cash flows for the period ended 30 June 2009 have been restated
to show the impact of discontinued operations.
The annual financial statements of the Group are prepared in accordance with
International Financial Reporting Standards (IFRS) and International Financial
Reporting Interpretation Committee (IFRIC) pronouncements as adopted by the
European Union. The financial information for the year ended 31 December 2009
does not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. This information was derived from the statutory accounts
for the year ended 31 December 2009, a copy of which has been delivered to the
Registrar of Companies. The auditor's report on these accounts was unqualified
and did not include a reference to any matters to which the auditor drew
attention by way of an emphasis of matter and did not contain a statement under
section 498 (2) or (3) of the Companies Act 2006.
The condensed consolidated interim financial statements are unaudited and do not
constitute statutory financial statements within the meaning of section 434 of
the Companies Act 2006.
2 Segmental information
+----------------------------+------------+----------+------------+----------+------------+
| | Unaudited | | Restated | | |
| | | | Unaudited | | |
+----------------------------+------------+----------+------------+----------+------------+
| | Six months | | Six months | | Year ended |
| | ended | | ended | | |
+----------------------------+------------+----------+------------+----------+------------+
| | 30 June | | 30 June | | 31 |
| | 2010 | | 2009 | | December |
| | | | | | 2009 |
+----------------------------+------------+----------+------------+----------+------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Revenue | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| The revenue was derived | | | | | |
| from the Group's principal | | | | | |
| activities in the UK as | | | | | |
| follows: | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Document Handling | 6,198 | | 7,024 | | 12,760 |
+----------------------------+------------+----------+------------+----------+------------+
| Emergency Repair | 7,184 | | 7,086 | | 14,217 |
+----------------------------+------------+----------+------------+----------+------------+
| | 13,382 | | 14,110 | | 26,977 |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Results | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| The profit/(loss) after | | | | | |
| tax was derived from the | | | | | |
| Group's principal | | | | | |
| activities in the UK as | | | | | |
| follows: | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Document Handling | 1,831 | | 2,042 | | 3,146 |
+----------------------------+------------+----------+------------+----------+------------+
| Emergency Repair | 19 | | (423) | | (345) |
+----------------------------+------------+----------+------------+----------+------------+
| Central costs | (498) | | (762) | | (1,339) |
+----------------------------+------------+----------+------------+----------+------------+
| Share based payments | - | | - | | 1,147 |
| credit | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Impairment of intangible | - | | - | | (5,000) |
| fixed assets | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Exceptional items - | (135) | | (952) | | (1,183) |
| operating costs | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Amortisation of intangible | (193) | | (119) | | (257) |
| assets | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Operating profit/(loss) | 1,024 | | (214) | | (3,831) |
+----------------------------+------------+----------+------------+----------+------------+
| Net finance cost | (638) | | (1,147) | | (1,984) |
+----------------------------+------------+----------+------------+----------+------------+
| Exceptional items - | - | | (750) | | (1,975) |
| finance costs | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Profit/(loss) before tax | 386 | | (2,111) | | (7,790) |
+----------------------------+------------+----------+------------+----------+------------+
| Income tax | (176) | | 501 | | 164 |
| (expense)/credit | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Profit/(loss) after | 210 | | (1,610) | | (7,626) |
| tax from continuing | | | | | |
| operations | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
The operating exceptional item of GBP135,000 relates to redundancy costs and
financing fees, (6 months ended 30 June 2009: GBP952,000 relates to a provision
for onerous lease costs in respect of properties retained by the group following
the disposal of ANSA and Independent Inspections Limited. Included within
finance costs is a fee of GBP750,000 in connection with Geraldton Services Inc
making available to the Company a short-term loan and underwrite facility).
In the year ended 31 December 2009, the exceptional items of GBP1,183,000 relate
to costs of a strategic review of GBP270,000, professional fees of GBP150,000
and redundancy costs of GBP763,000 following the sale of Ansa Holdings Limited
and Independent Inspections Limited. The impairment of intangible assets is in
respect of Document Control Services Limited and is comprised of goodwill
impairment of GBP5,000,000. The exceptional finance costs of GBP1,975,000 relate
to the write off of deferred financing costs of the previous banking facility
with Allied Irish bank plc of GBP477,000, costs associated with the new facility
of GBP510,000, underwriting fees of GBP900,000 paid to Geraldton (note 6) and
GBP88,000 of associated costs.
+----------------------------+------------+----------+------------+----------+------------+
| | Unaudited | | Restated | | |
| | | | Unaudited | | |
+----------------------------+------------+----------+------------+----------+------------+
| | Six months | | Six months | | Year ended |
| | ended | | ended | | |
+----------------------------+------------+----------+------------+----------+------------+
| | 30 June | | 30 June | | 31 |
| | 2010 | | 2009 | | December |
| | | | | | 2009 |
+----------------------------+------------+----------+------------+----------+------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+------------+----------+------------+----------+------------+
| Discontinued operations | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Disposed Emergency Repair | (7) | | 550 | | 903 |
+----------------------------+------------+----------+------------+----------+------------+
| Ansa Building Services | - | | (793) | | (2,609) |
+----------------------------+------------+----------+------------+----------+------------+
| Share based payments | - | | - | | 19 |
| credit | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Impairment of intangible | - | | (1,576) | | - |
| assets | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Amortisation of intangible | - | | - | | (63) |
| assets | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Profit on/(provision for | - | | 741 | | (463) |
| loss on) disposal | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Operating loss | (7) | | (1,078) | | (2,213) |
+----------------------------+------------+----------+------------+----------+------------+
| Net finance expense | - | | - | | (192) |
+----------------------------+------------+----------+------------+----------+------------+
| Loss before tax | (7) | | (1,078) | | (2,405) |
+----------------------------+------------+----------+------------+----------+------------+
| Income tax expense | - | | (46) | | - |
+----------------------------+------------+----------+------------+----------+------------+
| Loss from discontinued | (7) | | (1,124) | | (2,405) |
| operations | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
+----------------------------+------------+----------+------------+----------+------------+
| | Unaudited | | Unaudited | | |
+----------------------------+------------+----------+------------+----------+------------+
| | 30 June | | 30 June | | 31 |
| | 2010 | | 2009 | | December |
| | | | | | 2009 |
+----------------------------+------------+----------+------------+----------+------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Segmental assets: | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Emergency Repair | 2,826 | | 216 | | 1,761 |
+----------------------------+------------+----------+------------+----------+------------+
| Document Handling | 26,360 | | 39,194 | | 26,975 |
+----------------------------+------------+----------+------------+----------+------------+
| Central | 9,810 | | 760 | | 16,252 |
+----------------------------+------------+----------+------------+----------+------------+
| Discontinued operations | 48 | | 4,614 | | (2,028) |
+----------------------------+------------+----------+------------+----------+------------+
| Total | 39,044 | | 44,784 | | 42,960 |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Segmental liabilities: | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Emergency Repair | (3,395) | | 93 | | (2,215) |
+----------------------------+------------+----------+------------+----------+------------+
| Document Handling | (4,778) | | (4,551) | | (6,692) |
+----------------------------+------------+----------+------------+----------+------------+
| Central | (16,387) | | (25,557) | | (29,855) |
+----------------------------+------------+----------+------------+----------+------------+
| Discontinued operations | (2,277) | | (2,302) | | (194) |
+----------------------------+------------+----------+------------+----------+------------+
| Total | (26,837) | | (32,317) | | (38,956) |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Property, plant and | 542 | | 1,014 | | 1,977 |
| equipment additions | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Depreciation of property, | 492 | | 799 | | 847 |
| plant and equipment and | | | | | |
| amortisation of intangible | | | | | |
| assets | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
3 Tax
The underlying tax charge is based on the expected effective tax rate for the
full year to 31 December 2010 and is calculated as 28.5% on profit before tax.
4 Earnings/(loss) per ordinary share
Basic earnings/(loss) per share have been calculated on the profit/(loss) after
tax for the period and the weighted average number of ordinary shares in issue
during the period.
Adjusted earnings/(loss) per share are before amortisation and impairment of
intangible assets and exceptional items and have been presented in addition to
the basic earnings per share since, in the opinion of the Directors, this
provides shareholders with a more appropriate representation of the underlying
earnings derived from the Group's businesses.
+----------------------------+------------+----------+------------+----------+------------+
| | Unaudited | | Restated | | |
| | | | Unaudited | | |
+----------------------------+------------+----------+------------+----------+------------+
| | Six months | | Six months | | Year |
| | | | | | ended |
| | ended | | ended | | |
+----------------------------+------------+----------+------------+----------+------------+
| | 30 June | | 30 June | | 31 |
| | 2010 | | 2009 | | December |
| | | | | | 2009 |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | No. of | | No. of | | No. of |
| | shares | | shares | | shares |
+----------------------------+------------+----------+------------+----------+------------+
| Weighted average number of | 18,754,211 | | 9,325,423 | | 9,325,423 |
| shares in issue | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Profit/(loss) for the | 203 | | (2,734) | | (10,031) |
| period | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Total basic | 1.08p | | (29.32)p | | (107.57)p |
| earnings/(loss) per | | | | | |
| ordinary share | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+------------+----------+------------+----------+------------+
| Profit/(loss) after | | | | | |
| taxation on ordinary | 210 | | (1,610) | | (7,626) |
| activities from continuing | | | | | |
| operations | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Adjustments | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Impairment of intangible | - | | - | | 5,000 |
| assets | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Exceptional items | 135 | | 1,702 | | 3,158 |
+----------------------------+------------+----------+------------+----------+------------+
| Tax effect | (38) | | - | | - |
+----------------------------+------------+----------+------------+----------+------------+
| Share based payments | - | | - | | (1,147) |
| credit | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Amortisation of intangible | 193 | | 119 | | 257 |
| assets | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Adjusted earnings/(loss) | | | | | |
| - continuing operations | 500 | | 211 | | (358) |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Basic earnings/(loss) per | | | | | |
| ordinary share from | 1.12p | | (17.26)p | | (81.78)p |
| continuing operations | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Adjusted basic | 2.67p | | 2.26p | | (3.84)p |
| earnings/(loss) per | | | | | |
| ordinary share (before | | | | | |
| amortisation and | | | | | |
| impairment of intangible | | | | | |
| assets and exceptional | | | | | |
| items) from continuing | | | | | |
| operations | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
+------------------------------+------------+-+------------+----------+------------+
| | No. of | | No. of | | No. of |
| | shares | | shares | | shares |
+------------------------------+------------+-+------------+----------+------------+
| Weighted average number of | 18,754,521 | | 9,325,423 | | 9,325,423 |
| Shares in issue | | | | | |
+------------------------------+------------+-+------------+----------+------------+
| Share options and LTIPs | 1,411,584 | | 796,281 | | 755 |
+------------------------------+------------+-+------------+----------+------------+
| Weighted average fully | 20,166,105 | | 10,121,704 | | 9,326,178 |
| diluted number of shares in | | | | | |
| issue | | | | | |
+------------------------------+------------+-+------------+----------+------------+
| | 1.01p | | (29.32)p | | (107.57)p |
| Total fully diluted | | | | | |
| earnings/(loss) per ordinary | | | | | |
| share | | | | | |
+------------------------------+------------+-+------------+----------+------------+
| | | | | | |
| Fully diluted | | | | | |
| earnings/(loss) per ordinary | 1.04p | | (17.26)p | | (81.78)p |
| share from continuing | | | | | |
| operations | | | | | |
+------------------------------+------------+-+------------+----------+------------+
| | | | | | |
+------------------------------+------------+-+------------+----------+------------+
| | 2.48p | | 2.08p | | (3.84)p |
| Adjusted fully diluted | | | | | |
| earnings/(loss) per ordinary | | | | | |
| share from continuing | | | | | |
| operations | | | | | |
+------------------------------+------------+-+------------+----------+------------+
The diluted earnings per share are the basic earnings per share adjusted for the
dilutive effect of the conversion into fully paid shares of the outstanding
share options and awards under the LTIP. At 30 June 2009 they are also adjusted
for the conversion of the A shares into ordinary shares at the average price for
the period of 2.5p.
5. Discontinued Operations
The business of Ansa Building Services ceased on 31 December 2009 and is treated
as a discontinued operation. The Group sold the Ansa and Independent businesses
on 26 June 2009.
An analysis of the net assets held for resale at 30 June 2009 is as follows:
+----------------------------+------------+--+---------+
| | | | GBP'000 |
+----------------------------+------------+--+---------+
| | | | |
+----------------------------+------------+--+---------+
| Property, plant and | | | 326 |
| equipment | | | |
+----------------------------+------------+--+---------+
| Inventories | | | 77 |
+----------------------------+------------+--+---------+
| Trade and other | | | 4,108 |
| receivables | | | |
+----------------------------+------------+--+---------+
| Cash and cash equivalents | | | 103 |
+----------------------------+------------+--+---------+
| Assets held for sale | | | 4,614 |
+----------------------------+------------+--+---------+
| | | | |
+----------------------------+------------+--+---------+
| Trade and other payables | | | 2,302 |
+----------------------------+------------+--+---------+
| Liabilities held for sale | | | 2,302 |
+----------------------------+------------+--+---------+
| | | | |
+----------------------------+------------+--+---------+
| Net assets classified as | | | 2,312 |
| held for resale | | | |
+----------------------------+------------+--+---------+
Adjustments have been made to the asset value in order that it is held at its
estimated realisable value at 30 June 2009.
6. Other loans
+----------------------------+------------+----------+------------+----------+------------+
| | Unaudited | | Unaudited | | |
+----------------------------+------------+----------+------------+----------+------------+
| | 30 June | | 30 June | | 31 |
| | 2010 | | 2009 | | December |
| | | | | | 2009 |
+----------------------------+------------+----------+------------+----------+------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+------------+----------+------------+----------+------------+
| | | | | | |
+----------------------------+------------+----------+------------+----------+------------+
| Loan from ultimate parent | 2,326 | | - | | 10,000 |
+----------------------------+------------+----------+------------+----------+------------+
The subordinated loan from ultimate parent attracts interest at 10% which is
compounded annually. On 12 April 2010, Geraldton subscribed for GBP8m of
ordinary shares, the proceeds of which were used to pay down the loan above.
7. Share Capital
+-----------------------------------+--------------+--+--------------+--+-------------+
| | Unaudited | | Unaudited | | |
+-----------------------------------+--------------+--+--------------+--+-------------+
| | 30 June 2010 | | 30 June 2009 | | 31 December |
| | | | | | 2009 |
+-----------------------------------+--------------+--+--------------+--+-------------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------------------------+--------------+--+--------------+--+-------------+
| Authorised: | | | | | |
+-----------------------------------+--------------+--+--------------+--+-------------+
| 9,950,000,000 ordinary shares of | 9,950 | | 9,950 | | 9,950 |
| 0.1p each | | | | | |
+-----------------------------------+--------------+--+--------------+--+-------------+
| 50,000,000 deferred/ | | | | | |
| convertible A shares of 0.1p each | 50 | | 50 | | 50 |
+-----------------------------------+--------------+--+--------------+--+-------------+
| | 10,000 | | 10,000 | | 10,000 |
+-----------------------------------+--------------+--+--------------+--+-------------+
| Allotted, issued and fully paid: | | | | | |
+-----------------------------------+--------------+--+--------------+--+-------------+
| 466,271,145 (2009: 466,271,145) | | | | | |
| ordinary shares of 0.1p each | 1,533 | | 466 | | 466 |
+-----------------------------------+--------------+--+--------------+--+-------------+
| 50,000,000 (2009: 50,000,000) | | | | | |
| deferred shares of 0.1p each | 50 | | 50 | | 50 |
+-----------------------------------+--------------+--+--------------+--+-------------+
| | 1,583 | | 516 | | 516 |
+-----------------------------------+--------------+--+--------------+--+-------------+
The issued share capital is as follows:
+------------------+---------------+---------+
| Ordinary shares | Number of | Issue |
| of 0.1p each | shares | price |
+------------------+---------------+---------+
| At 1 January | 466,271,145 | |
| 2010 | | |
+------------------+---------------+---------+
| 12 April 2010 | 1,066,666,666 | 0.75p |
+------------------+---------------+---------+
| At 30 June 2010 | 1,532,937,811 | |
+------------------+---------------+---------+
On 22 July 2010, 39 new shares were issued and 50 existing ordinary shares were
exchanged for 1 new 5p ordinary share, resulting in the issued share capital
being 30,658,757 5p ordinary shares.
8. Acquisitions
Today the company announced the acquisition of Datacare Ltd for GBP1.155m funded
from existing bank facilities. In the year to 31 March 2010, Datacare recorded
an operating profit of GBP183,000 and turnover of GBP1.8m. Net assets at
completion are forecast to be GBP500,000.
The Interim Report is available from Mavinwood's offices at Sixth Floor, Marble
Arch Tower, 55 Bryanston Street, London W1H 7AA and on the Mavinwood website at
www.mavinwoodplc.com.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UNAVRRVAKRAR
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