TIDMJNY
RNS Number : 5530T
Journey Group PLC
30 September 2010
30 September 2010
Journey Group plc
Interim Results
for the six monthsended 30 June 2010
Journey Group plc ("Journey Group" or the "Group") a leading provider of
in-flight products, catering and media services to the airline and travel
industry today announces its results for the six months ended 30 June 2010.
Highlights
- EBITDA before exchange differences improved to GBP0.4 million from GBP0.1
million in H1 2009, but, adjusting for the transfer of businesses to the
Alpha-Airfayre Limited joint venture, on a like for like basis EBITDA before
exchange differences rose by GBP0.6 million.
- Los Angeles operation EBITDA profit of GBP1.0 million versus GBP0.6
million in H1 2009.
- New GBP4.5 million three year borrowing facility.
- Underlying net debt reduced to GBP2.9 million.
- Provision of GBP1.2 million against the carrying value of the investment
in Alpha-Airfayre Limited.
Stephen Yapp, Chairman commented
"Whilst conditions within the international airline industry generally remain
challenging, your Group has re-positioned each of its businesses to provide a
service offering that is relevant and attractive to its customers' present and
future needs. With the new 3 year borrowing facility in place, the Group now has
a stable financial base. We are confident that the achievement of these
objectives will, in time and with market recovery, lead to attractive growth".
For further information please contact:
Stephen Yapp
Journey Group plc
Tel: +44 (0) 20 8606 2000
info@journeygroup.plc.uk
Carl Fry
Journey Group plc
Tel: +44 (0) 20 8606 2000
info@journeygroup.plc.uk
KBC Peel Hunt Ltd (Nominated Advisor & Broker)
Daniel Harris
Tel: +44 (0) 20 7418 8900
EXECUTIVE CHAIRMAN'S LETTER TO SHAREHOLDERS
Dear Shareholder,
INTRODUCTION
In line with the confidence expressed in my 2009 year end statement, the Group
has made solid progress during the first half despite the tentative nature of
the global economic recovery. The results for the half year reflect the strength
of the Group's operation in Los Angeles and at the same time the challenging
market conditions impacting our in-flight products business and the
Alpha-Airfayre Limited joint venture.
The key highlights:
- EBITDA before exchange differences improved to GBP0.4 million from GBP0.1
million in H1 2009, but, adjusting for the transfer of businesses to the
Alpha-Airfayre Limited joint venture, on a like for like basis EBITDA before
exchange differences rose by GBP0.6 million.
- Los Angeles operation EBITDA profit of GBP1.0 million versus GBP0.6
million in H1 2009.
- New GBP4.5 million three year borrowing facility.
- Underlying net debt reduced to GBP2.9 million.
- Provision of GBP1.2 million against the carrying value of the investment
in Alpha-Airfayre Limited.
The recovery in the airline industry has been geographically driven with the
Asia Pacific and Middle East regions leading the way. Airlines in Asia Pacific,
North America and Middle East regions are forecasting significantly improved
profitability in 2010, although European airlines continue to forecast losses.
BORROWING FACILITIES
The key corporate activity this year has been the successful refinancing of the
Group's GBP3.25m on demand bank facility and GBP0.1 million guarantee facility
provided by Barclays Bank plc with new term facilities. As announced on 3
September 2010, the Group has entered a GBP4.5 million facility with a term of
three years. Under the facility, warrants have been issued over up to 35,185,825
new ordinary shares, representing approximately 10% of the Group's fully diluted
share capital, exercisable at a price of 1 pence per share on or before 2
September 2020. This refinancing was achieved against a difficult lending
environment and is a testament to the current state of the Group's businesses
and its future prospects. The longer term nature of this funding provides the
Group with a stable capital base from which to plan its future strategy and
growth. The refinancing also resulted in the termination of the substantial
monthly facility fees charged by Barclays Bank plc, which have been treated as
an exceptional item in these results.
RESULTS
The results for the half year were as follows:
+---------------------------------------------+--------+-+--------+----------+
| 6 months to 30 June | 2010 | | 2009 | |
| | GBP'm | | GBP'm | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| Revenue | 17.1 | | 39.8 | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| EBITDA before exchange differences | 0.4 | | 0.1 | |
+---------------------------------------------+--------+-+--------+----------+
| Exchange differences | 0.3 | | - | |
+---------------------------------------------+--------+-+--------+----------+
| EBITDA | 0.7 | | 0.1 | |
+---------------------------------------------+--------+-+--------+----------+
| Depreciation and amortization | (0.5) | | (1.1) | |
+---------------------------------------------+--------+-+--------+----------+
| Operating profit/(loss) before exceptional | 0.2 | | (1.0) | |
| items and share based payments | | | | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| Share based payments | (0.1) | | (0.1) | |
+---------------------------------------------+--------+-+--------+----------+
| Exceptional items | (1.8) | | (1.1) | |
+---------------------------------------------+--------+-+--------+----------+
| Share of joint venture's net loss | (0.5) | | - | |
+---------------------------------------------+--------+-+--------+----------+
| Finance charges | (0.2) | | (0.4) | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| Loss before taxation | (2.4) | | (2.6) | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| Basic loss per share (pence) | 0.8 | | 0.9 | |
+---------------------------------------------+--------+-+--------+----------+
Due to the transfer of the activities of Air Fayre Limited and Elev8 Retail
Limited to the Alpha-Airfayre Limited joint venture in H2 2009, both turnover
and EBITDA were negatively impacted. Turnover fell by GBP22.7 million to GBP17.1
million largely for this reason, but EBITDA before exchange differences rose by
GBP0.3 million to GBP0.4 million. Adjusting for the transfer to the
Alpha-Airfayre Limited joint venture, on a like for like basis EBITDA rose by
GBP0.6 million. Foreign exchange differences of GBP0.3 million reflected the
strength of the US dollar over the half year. After exchange differences, EBITDA
rose by GBP0.6 million to GBP0.7 million.
Operating profit before exceptional items and share based payments amounted to
GBP0.2 million compared with a loss of GBP1.0 million in H1 2009. The reduction
in depreciation of GBP0.6 million was substantially due to the transfer of
businesses to the Alpha-Airfayre Limited joint venture. Exceptional items of
GBP1.8 million comprised a provision of GBP1.2 million against the carrying
value of the investment in Alpha-Airfayre Limited, bank facility fees of GBP0.3
million as referred to above and reorganisation costs of GBP0.3 million mainly
relating to the Products Division. The share of joint venture's net loss
amounted to GBP0.5 million and finance charges fell by GBP0.2 million to GBP0.2
million.
There was a net loss before taxation of GBP2.4 million compared with a loss of
GBP2.6 million in H1 2009. The basic loss per share was 0.8 pence compared with
0.9 pence in H1 2009.
Net debt amounted to GBP2.1 million compared with GBP0.5 million at 31 December
2009 and GBP5.2 million at 30 June 2009. However, under transitional
arrangements the Group continued to collect cash belonging to the Alpha-Airfayre
Limited joint venture and at 31 December 2009 had material creditors on deferred
terms. Adjusting for these factors, underlying net debt fell to GBP2.9 million
from GBP3.0 million at 31 December 2009.
LOS ANGELES DIVISION
+---------------------------------------------+--------+-+--------+----------+
| 6 months to 30 June | 2010 | | 2009 | |
| | GBP'm | | GBP'm | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| Revenue | 7.4 | | 8.2 | |
+---------------------------------------------+--------+-+--------+----------+
| EBITDA before exceptional items and share | 1.0 | | 0.6 | |
| based payments | | | | |
+---------------------------------------------+--------+-+--------+----------+
The Los Angeles operation performed better than expected and had a robust first
half with EBITDA well ahead of the prior period. Turnover was lower due to a
change in food supply arrangements towards free issue from United Airlines and
away from third party purchases that are charged to United Airlines.
The operation maintained a high level of efficiency and has seen organic growth
from United Airlines, its core customer. A high standard of service continued to
be delivered to United and in recognition of this it was awarded first place by
United for the best hub worldwide in the category of reliability / on time
performance for the first half of 2010.
The unit was successful in winning a new customer, Express Jet, which is a
charter airline serving the entertainment industry and VIP private business. The
potential for this airline is exciting as it develops its business prospects.
The Air Fayre business model continued to attract significant interest from
airlines and non-aviation prospective clients with enquiries / RFPs and station
visits. With significant spare capacity, the focus remains on securing new
customers.
PRODUCTS DIVISION
+---------------------------------------------+--------+-+--------+----------+
| 6 months to 30 June | 2010 | | 2009 | |
| | GBP'm | | GBP'm | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| Revenue | 8.4 | | 10.3 | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| EBITDA before exchange differences | (0.2) | | (0.3) | |
+---------------------------------------------+--------+-+--------+----------+
| Exchange differences | 0.1 | | (0.1) | |
+---------------------------------------------+--------+-+--------+----------+
| EBITDA before exceptional items and share | (0.1) | | (0.4) | |
| based payments | | | | |
+---------------------------------------------+--------+-+--------+----------+
The Products Division continued to be adversely impacted by very competitive
market conditions leading to reduced turnover and gross profits. However, the
restructuring that was largely implemented in 2009 led to significant overhead
savings and as a result EBITDA showed a small increase.
These difficult conditions mainly impacted the in-flight products business, but
the cancellations due to the ash cloud and the BA crew strike also had a
negative effect. The restructuring of the in-flight products business was
largely completed during the half year leading to additional exceptional costs.
Management has recently been strengthened with the appointment of an Operations
Director and a Finance Director. The focus for H2 is on stabilizing the new
teams and enhancing the capabilities within sales and marketing to take
advantage of emerging opportunities. Whilst the UK and Western Europe were
particularly difficult, sales growth was achieved in the Middle East and Asia
Pacific regions with both expected to be strong contributors to trading in 2011.
In particular, new contracts were won with Etihad Airlines, Singapore Airlines,
Qantas and Air New Zealand. MNH's sustainability and cabin management business
continued to perform well.
We continue to develop the Division's strategy by broadening the in-flight
products business into a creative products agency serving a broader range of
industries. MNH continues to develop its services to provide a global
capability.
SERVICES DIVISION
+---------------------------------------------+--------+-+--------+----------+
| 6 months to 30 June | 2010 | | 2009 | |
| | GBP'm | | GBP'm | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| Revenue | 1.3 | | 21.3 | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| EBITDA before exchange differences | 0.1 | | 0.4 | |
+---------------------------------------------+--------+-+--------+----------+
| Exchange differences | - | | 0.3 | |
+---------------------------------------------+--------+-+--------+----------+
| EBITDA before exceptional items and share | 0.1 | | 0.7 | |
| based payments | | | | |
+---------------------------------------------+--------+-+--------+----------+
Following the transfer of the activities of Air Fayre Limited and Elev8 Retail
Limited to the Alpha-Airfayre Limited joint venture in H2 2009, the remaining
business within the Division is Media on the Move Limited, which provides media
services mainly to the international airline industry. The reduction in turnover
and EBITDA arose substantially from transfers to Alpha-Airfayre Limited.
Media on the Move Limited experienced a tougher half year than expected, but
still achieved turnover of GBP1.2 million versus GBP1.2 million in H1 2009 and
EBITDA of GBP28,000 versus GBP35,000 in H1 2009. The business continues to
broaden its services and markets. New business wins included Sky Teams lounge at
Heathrow, the carriers TAM and Eva Air, and Cross Country Rail. Developmental
work during the first half is expected to see new media services being offered
to Thomson Airways and National Express coaches in H2. A dedicated Financial
Controller was appointed providing a stronger focus on key performance
indicators, including margins, working capital and cash flow.
ALPHA-AIRFAYRE LIMITED JOINT VENTURE
The first half was focused on the integration of the Alpha and the Air Fayre
businesses, on the renewal of some important customer contracts and on bids for
new business. The integration was achieved successfully with the planned cost
synergies being achieved. However, operating performance fell short of
expectations primarily due to the ash cloud, which led to the temporary closure
of operations at Heathrow. A key contract was not retained on renewal and the
scope of another materially reduced. As a consequence, steps to restructure the
business are planned that will lead to an overall smaller operation. In the
light of this, the carrying value of the investment in the joint venture has
been reviewed for impairment and an exceptional provision of GBP1.2 million has
been made.
CENTRAL COSTS
+---------------------------------------------+--------+-+--------+----------+
| 6 months to 30 June | 2010 | | 2009 | |
| | GBP'm | | GBP'm | |
+---------------------------------------------+--------+-+--------+----------+
| | | | | |
| Corporate expenses before exchange | (0.5) | | (0.7) | |
| differences | | | | |
+---------------------------------------------+--------+-+--------+----------+
| Exchange differences | 0.2 | | (0.2) | |
+---------------------------------------------+--------+-+--------+----------+
| Corporate expenses after exchange | (0.3) | | (0.9) | |
| differences | | | | |
+---------------------------------------------+--------+-+--------+----------+
Firm control remained over corporate expenses.
OUTLOOK
Whilst conditions within the international airline industry generally remain
challenging, your Group has re-positioned each of its businesses to provide a
service offering that is relevant and attractive to its customers' present and
future needs. With the new 3 year borrowing facility in place, the Group now has
a stable financial base. We are confident that the achievement of these
objectives will, in time and with market recovery, lead to attractive growth.
Stephen Yapp
Executive Chairman
30 September 2010
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT
for the 6 months to 30 June 2010
+-----------------------+------+-------------+-------------+--------+--------+----------+
| | | Before | | | | |
| | | Exceptional | Exceptional | Total | Total | Total |
| | | items to | items to | 6 | 6 | 12 |
| | | 30 June | 30 June | months | months | months |
| | | 2010 | 2010 | to | to | to |
| | Note | GBP'm | GBP'm | 30 | 30 | 31 |
| | | | | June | June | December |
| | | | | 2010 | 2009 | 2009 |
| | | | | GBP'm | GBP'm | GBP'm |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| | | | | | | |
| Revenue | 3 | 17.1 | - | 17.1 | 39.8 | 74.5 |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| | | | | | | |
| Cost of sales | | (12.7) | - | (12.7) | (31.8) | (59.4) |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| | | | | | | |
| Gross Profit | | 4.4 | - | 4.4 | 8.0 | 15.1 |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| | | | | | | |
| Operating and | | | | | | |
| administrative costs | | (4.3) | - | (4.3) | (9.1) | (16.3) |
| (excluding | | | | | | |
| exceptional items) | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Exceptional items: | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Banking costs | 4 | - | (0.3) | (0.3) | (0.2) | (1.0) |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Re-organisation costs | 4 | - | (0.3) | (0.3) | (0.4) | (0.7) |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Exceptional | | | | | | |
| impairment of | 4 | - | (1.2) | (1.2) | - | - |
| investment in joint | | | | | | |
| venture | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Los Angeles start-up | 4 | - | - | - | (0.5) | (0.6) |
| costs | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Settlement of | 4 | - | - | - | - | (0.1) |
| contract | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Other | 4 | - | - | - | - | (0.1) |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Total operating and | | | | | | |
| administrative | | (4.3) | (1.8) | (6.1) | (10.2) | (18.8) |
| expenses | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Operating | | | | | | |
| profit/(loss) | 3 | 0.1 | (1.8) | (1.7) | (2.2) | (3.7) |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Operating | | | | | | |
| profit/(loss) before | | 0.2 | (1.8) | (1.6) | (2.1) | (3.4) |
| share based payments | | (0.1) | - | (0.1) | (0.1) | (0.3) |
| Share based payments | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Share of joint | | (0.5) | - | (0.5) | - | (0.4) |
| venture's net loss | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Finance costs | 6 | (0.2) | - | (0.2) | (0.4) | (0.6) |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Loss before tax | | | | | | |
| attributable to | | (0.6) | (1.8) | (2.4) | (2.6) | (4.7) |
| equity shareholders | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Income tax credit | | - | - | - | - | 0.1 |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Loss after tax | | | | | | |
| attributable to | 3 | (0.6) | (1.8) | (2.4) | (2.6) | (4.6) |
| equity shareholders | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| | | | | | | |
| Loss per share | | | | | | |
| (pence) | | | | | | |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Basic | 5 | | | (0.8p) | (0.9p) | (1.6p) |
+-----------------------+------+-------------+-------------+--------+--------+----------+
| Diluted | 5 | | | (0.8p) | (0.9p) | (1.6p) |
+-----------------------+------+-------------+-------------+--------+--------+----------+
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the 6 months to 30 June 2010
+------------------------------------------+----------+--------+----------+
| | 6 months | 6 | 12 |
| | to | months | months |
| | 30 June | to | to |
| | 2010 | 30 | 31 |
| | GBP'm | June | December |
| | | 2009 | 2009 |
| | | GBP'm | GBP'm |
+------------------------------------------+----------+--------+----------+
| | | | |
| Loss for the period | (2.4) | (2.6) | (4.6) |
| | | | |
+------------------------------------------+----------+--------+----------+
| Other comprehensive loss | | | |
| | | | |
+------------------------------------------+----------+--------+----------+
| Exchange differences on translating | 0.1 | (0.1) | (0.1) |
| foreign operations | | | |
+------------------------------------------+----------+--------+----------+
| | | | |
| Other comprehensive income/(loss), net | 0.1 | (0.1) | (0.1) |
| of tax | | | |
+------------------------------------------+----------+--------+----------+
| | | | |
| Total comprehensive loss for the period | | | |
| attributable | | | |
+------------------------------------------+----------+--------+----------+
| to the equity shareholders of the parent | (2.3) | (2.7) | (4.7) |
| company | | | |
+------------------------------------------+----------+--------+----------+
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
as at 30 June 2010
+-----------------------------------+------+---------+---------+----------+
| | | 30 June | 30 June | 31 |
| | | 2010 | 2009 | December |
| | Note | GBP'm | GBP'm | 2009 |
| | | | | GBP'm |
+-----------------------------------+------+---------+---------+----------+
| Assets | | | | |
| Non-current assets | | | | |
| Property, plant and equipment | 7 | 5.7 | 13.8 | 5.6 |
| Goodwill | | 6.1 | 10.0 | 6.1 |
| Intangible assets | | - | 0.3 | 0.1 |
| Investment in joint venture | | 3.5 | - | 5.2 |
+-----------------------------------+------+---------+---------+----------+
| | | 15.3 | 24.1 | 17.0 |
| | | | | |
+-----------------------------------+------+---------+---------+----------+
| Current assets | | | | |
| Inventories | | 1.3 | 2.5 | 1.1 |
| Trade and other receivables | | 3.5 | 6.8 | 7.7 |
| Prepayments | | 0.3 | 1.4 | 0.7 |
| Current income tax | | 0.1 | 0.1 | 0.1 |
| Cash and short-term deposits | 9 & | 1.2 | 1.1 | 1.7 |
| | 10 | | | |
+-----------------------------------+------+---------+---------+----------+
| | | 6.4 | 11.9 | 11.3 |
| | | | | |
+-----------------------------------+------+---------+---------+----------+
| Total assets | | 21.7 | 36.0 | 28.3 |
+-----------------------------------+------+---------+---------+----------+
| | | | | |
+-----------------------------------+------+---------+---------+----------+
| | | | | |
| Equity and liabilities | | | | |
| Equity attributable to equity | | | | |
| share owners of the parent | | 2.9 | 2.9 | 2.9 |
| Issued share capital | | 36.4 | 36.4 | 36.4 |
| Share premium account | | 0.1 | 0.1 | 0.1 |
| Shares to be issued | | 1.5 | 1.5 | 1.5 |
| Merger reserve | | (0.9) | (1.0) | (1.0) |
| Foreign currency translation | | (29.0) | (25.1) | (26.7) |
| reserve | | | | |
| Retained earnings | | | | |
+-----------------------------------+------+---------+---------+----------+
| Total equity | | 11.0 | 14.8 | 13.2 |
+-----------------------------------+------+---------+---------+----------+
| | | | | |
+-----------------------------------+------+---------+---------+----------+
| Non-current liabilities | | | | |
| Interest bearing loans and | 9 | 0.8 | 1.2 | 0.9 |
| borrowings | | | | |
+-----------------------------------+------+---------+---------+----------+
| | | 0.8 | 1.2 | 0.9 |
+-----------------------------------+------+---------+---------+----------+
| Current liabilities | | | | |
| Trade and other payables | | 7.4 | 14.9 | 12.9 |
| Interest bearing loans and | 9 | 2.5 | 5.1 | 1.3 |
| borrowings | | | | |
+-----------------------------------+------+---------+---------+----------+
| | | 9.9 | 20.0 | 14.2 |
| | | | | |
+-----------------------------------+------+---------+---------+----------+
| Total liabilities | | 10.7 | 21.2 | 15.1 |
| | | | | |
+-----------------------------------+------+---------+---------+----------+
| Total equity and liabilities | | 21.7 | 36.0 | 28.3 |
+-----------------------------------+------+---------+---------+----------+
UNAUDITED CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the 6 months to 30 June 2010
+-------------------------------------+------+--------+--------+----------+
| | | 6 | 6 | 12 |
| | | months | months | months |
| | | to | to | to |
| | Note | 30 | 30 | 31 |
| | | June | June | December |
| | | 2010 | 2009 | 2009 |
| | | GBP'm | GBP'm | GBP'm |
+-------------------------------------+------+--------+--------+----------+
| Net cash flows from operating | | | | |
| activities | | (2.4) | (2.6) | (4.6) |
| Loss after tax | | 0.5 | 1.1 | 2.1 |
| Depreciation and amortisation | | 0.5 | - | 0.4 |
| Share of joint venture's net loss | | 0.1 | 0.1 | 0.3 |
| Share based payment expense | | 0.2 | 0.4 | 0.6 |
| Finance costs | | 1.2 | - | - |
| Exceptional impairment of | | - | - | 0.1 |
| investment in joint venture | | - | - | (0.2) |
| Tax credit | | - | - | 0.2 |
| Gain on disposal | | (0.2) | 1.4 | 2.1 |
| Fair value charges relating to | | 4.6 | 3.6 | 3.1 |
| warrrants | | (5.5) | (3.9) | (3.8) |
| (Increase)/decrease in inventories | | | | |
| Decrease in trade and other | | | | |
| receivables | | | | |
| Decrease in trade and other | | | | |
| payables | | | | |
+-------------------------------------+------+--------+--------+----------+
| Cash inflows (used in)/generated | | (1.0) | 0.1 | 0.3 |
| from operations | | (0.2) | (0.3) | (0.6) |
| Interest paid | | | | |
+-------------------------------------+------+--------+--------+----------+
| Net cash outflows used in operating | | (1.2) | (0.2) | (0.3) |
| activities | | | | |
+-------------------------------------+------+--------+--------+----------+
| | | | | |
| Cash flows from investing | | | | |
| activities | | | | |
+-------------------------------------+------+--------+--------+----------+
| Purchase of property, plant and | | (0.1) | (0.2) | (0.3) |
| equipment | | | | |
+-------------------------------------+------+--------+--------+----------+
| Cash arising from joint venture | | - | - | 5.0 |
| transaction | | | | |
+-------------------------------------+------+--------+--------+----------+
| Net cash flows (used in)/generated | | | | |
| from investing activities | | (0.1) | (0.2) | 4.7 |
+-------------------------------------+------+--------+--------+----------+
| | | | | |
| Cash flows from financing | | | | |
| activities | | | | |
+-------------------------------------+------+--------+--------+----------+
| Payment of bank loan and finance | | (0.1) | (1.1) | (5.9) |
| lease obligations | | | | |
+-------------------------------------+------+--------+--------+----------+
| Net cash flows used in financing | | (0.1) | (1.1) | (5.9) |
| activities | | | | |
+-------------------------------------+------+--------+--------+----------+
| | | | | |
| Net decrease in cash and cash | | (1.4) | (1.5) | (1.5) |
| equivalents | | (0.3) | 0.8 | 0.6 |
| Net foreign exchange difference | | | | |
+-------------------------------------+------+--------+--------+----------+
| Cash and cash equivalents at | | 0.9 | 1.8 | 1.8 |
| beginning of period | | | | |
+-------------------------------------+------+--------+--------+----------+
| Cash and cash equivalents at end of | 10 | (0.8) | 1.1 | 0.9 |
| period | | | | |
+-------------------------------------+------+--------+--------+----------+
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
for the 6 months to 30 June 2010
Condensed consolidated statement of changes in equity for the 6 months to 30
June 2010
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| | | | | | Foreign | | |
| | Issued | Share | Shares | | Currency | | |
| | share | premium | | Merger | translation | Retained | Total |
| | capital | | to be | reserve | reserve | earnings | equity |
| | GBP'm | account | issued | GBP'm | GBP'm | GBP'm | GBP'm |
| | | GBP'm | GBP'm | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| | | | | | | | |
| At 1 January 2010 | 2.9 | 36.4 | 0.1 | 1.5 | (1.0) | (26.7) | 13.2 |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Cost of share | - | - | - | - | - | 0.1 | 0.1 |
| based payments | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Transactions with | - | - | - | - | - | 0.1 | 0.1 |
| owners | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Loss for the | - | - | - | - | - | (2.4) | (2.4) |
| period | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| loss: | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Exchange | | | | | | | |
| differences on | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| translating | - | - | - | - | 0.1 | - | 0.1 |
| foreign | | | | | | | |
| operations | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Total | | | | | | | |
| comprehensive | - | - | - | - | 0.1 | (2.4) | (2.3) |
| income/(loss) | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| At 30 June 2010 | 2.9 | 36.4 | 0.1 | 1.5 | (0.9) | (29.0) | 11.0 |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
Condensed consolidated statement of changes in equity for the 6 months to 30
June 2009
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| | | | | | Foreign | | |
| | Issued | Share | Shares | | Currency | | |
| | share | premium | | Merger | translation | Retained | Total |
| | capital | | to be | reserve | reserve | earnings | equity |
| | GBP'm | account | issued | GBP'm | GBP'm | GBP'm | GBP'm |
| | | GBP'm | GBP'm | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| | | | | | | | |
| At 1 January 2009 | 2.9 | 36.4 | 0.1 | 1.5 | (0.9) | (22.6) | 17.4 |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Cost of share | - | - | - | - | - | 0.1 | 0.1 |
| based payments | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Transactions with | - | - | - | - | - | 0.1 | 0.1 |
| owners | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Loss for the | - | - | - | - | - | (2.6) | (2.6) |
| period | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| loss: | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Exchange | | | | | | | |
| differences on | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| translating | - | - | - | - | (0.1) | - | (0.1) |
| foreign | | | | | | | |
| operations | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Total | - | - | - | - | (0.1) | (2.6) | (2.7) |
| comprehensive | | | | | | | |
| loss | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| At 30 June 2009 | 2.9 | 36.4 | 0.1 | 1.5 | (1.0) | (25.1) | 14.8 |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
Condensed consolidated statement of changes in equity for the 12 months to 31
December 2009
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| | | | | | Foreign | | |
| | Issued | Share | Shares | | Currency | | |
| | share | premium | | Merger | translation | Retained | Total |
| | capital | | to be | reserve | reserve | earnings | equity |
| | GBP'm | account | issued | GBP'm | GBP'm | GBP'm | GBP'm |
| | | GBP'm | GBP'm | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| | | | | | | | |
| At 1 January 2009 | 2.9 | 36.4 | 0.1 | 1.5 | (0.9) | (22.6) | 17.4 |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Cost of share | - | - | - | - | - | 0.3 | 0.3 |
| based payments | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Fair value | | | | | | | |
| charges relating | - | - | - | - | - | 0.2 | 0.2 |
| to | | | | | | | |
| warrants | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Transactions with | - | - | - | - | - | 0.5 | 0.5 |
| owners | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Loss for the | - | - | - | - | - | (4.6) | (4.6) |
| period | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Other | | | | | | | |
| comprehensive | | | | | | | |
| loss: | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Exchange | | | | | | | |
| differences on | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| translating | - | - | - | - | (0.1) | - | (0.1) |
| foreign | | | | | | | |
| operations | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| Total | - | - | - | - | (0.1) | (4.6) | (4.7) |
| comprehensive | | | | | | | |
| loss | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
| At 31 December | 2.9 | 36.4 | 0.1 | 1.5 | (1.0) | (26.7) | 13.2 |
| 2009 | | | | | | | |
+-------------------+---------+---------+--------+---------+-------------+----------+--------+
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED ACCOUNTS
for the 6 months to 30 June 2010
1. CORPORATE INFORMATION
Journey Group plc is a public limited company incorporated and domiciled in
England & Wales. The Company's shares were publicly traded on the AIM market of
the London Stock Exchange during the reporting period.
The comparative figures for the year ended 31 December 2009 were derived from
the statutory accounts for that year which have been delivered to the Registrar
of Companies. Those accounts received an unqualified audit report, which did not
contain statements under sections 498(2) or (3) (accounting record or returns
inadequate, accounts not agreeing with records and returns or failure to obtain
necessary information and explanations) of the Companies Act 2006, but which did
include a reference to an emphasis of matter regarding the Group's ability to
continue as a going concern. The interim results are unaudited.
The principal activities of the Group are described in Note 3.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
i. Basis of preparation
The accounting policies applied in preparing the interim results for the period
ended 30 June 2010 are unchanged from those adopted in the financial statements
for the year ended 31 December 2009.
ii. Statement of compliance
These interim consolidated financial statements are for the six months ended 30
June 2010. They have been prepared in accordance with IFRSs as adopted by the
European Union and IAS 34 Interim Financial Reporting. They do not include all
of the information required for full annual financial statements, and should be
read in conjunction with the consolidated financial statements of the Group for
the year ended 31 December 2009.
iii. Alpha-Airfayre Limited joint venture
As described in the full annual financial statements for the year ended 31
December 2009, the Group entered into a joint venture transaction with Alpha
Flight UK Limited in November 2009. The accounting policies adopted and key
judgements made in connection with that transaction are detailed in the full
financial statements. For the period ended 30 June 2009 the income statement
and balance sheets of the trading subsidiaries Air Fayre Limited, International
Catering Limited and Elev8 Retail Limited were fully consolidated on a line by
line basis into the Group financial statements. In the period ended 30 June
2010 these operations are included within the single line 'Share of joint
venture's net loss' in the Group income statement and 'Investment in joint
venture' in the Group balance sheet.
3. SEGMENTAL REPORTING
The Group is organised on a worldwide basis into three primary business
segments, the Products, Services and Los Angeles Divisions. These reportable
segments are the three strategic divisions for which monthly financial
information is provided to the Chief Operating Decision Maker.
The Products Division provides a broad range of travel supplies predominately to
the international travel industry on a global basis. The Los Angeles Division is
a supplier of catering to the domestic and international travel industry within
the United States of America. The Services Division was a supplier of catering
to the international travel industry within the United Kingdom until the
transfer of those operations to the joint venture with Alpha Flight UK Limited
on 20 November 2009 and is a supplier of media services to the international
travel industry in the United Kingdom. The Services Division was also engaged in
supply chain management, but since 31 December 2009 this revenue stream ceased.
Both the Products and Services Divisions provide marketing, design and
consultancy services.
Information on primary reporting by business segment is shown below.
Segment revenues, expenses and results include transfers and transactions
between business segments. Such transactions are accounted for at competitive
market prices which would be charged to unaffiliated clients for similar goods.
All inter-segment transactions are eliminated on consolidation. Exceptional
items relate to significant non-recurring expenditure of an unusual nature.
Segmental information by business segment for 6 months to 30 June 2010
+----------------------------+----------+----------+----------+--------------+--------+
| | | | Los | | |
| | Product | Services | Angeles | | |
| | Division | Division | Division | Eliminations | Total |
| | 6 months | 6 months | 6 months | 6 months to | 6 |
| | to | to | to | 30 June | months |
| | 30 June | 30 June | 30 June | 2010 | to |
| | 2010 | 2010 | 2010 | GBP'm | 30 |
| | GBP'm | GBP'm | GBP'm | | June |
| | | | | | 2010 |
| | | | | | GBP'm |
+----------------------------+----------+----------+----------+--------------+--------+
| | | | | | |
| Revenue | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Travel supplies, catering | 8.4 | 1.2 | 7.4 | - | 17.0 |
| and media services | - | 0.1 | - | - | 0.1 |
| Marketing, design and | | | | | |
| consultancy | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Total revenue | 8.4 | 1.3 | 7.4 | - | 17.1 |
+----------------------------+----------+----------+----------+--------------+--------+
| | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Result | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Segment result before | (0.2) | 0.1 | 0.6 | - | 0.5 |
| exceptional items | (0.2) | (0.1) | - | - | (0.3) |
| Exceptional costs | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Segment result | (0.4) | - | 0.6 | - | 0.2 |
+----------------------------+----------+----------+----------+--------------+--------+
| Unallocated corporate | | | | | (0.4) |
| expenses | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Unallocated exceptional | | | | | (0.3) |
| banking costs | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Unallocated exceptional | | | | | |
| impairment of investment | | | | | (1.2) |
| in joint venture | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Operating loss | | | | | (1.7) |
+----------------------------+----------+----------+----------+--------------+--------+
| Share of joint venture's | | | | | (0.5) |
| net loss | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Finance costs | | | | | (0.2) |
+----------------------------+----------+----------+----------+--------------+--------+
| Income tax | | | | | - |
+----------------------------+----------+----------+----------+--------------+--------+
| Loss after tax | | | | | (2.4) |
+----------------------------+----------+----------+----------+--------------+--------+
| | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Other information | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| Segment assets | 4.7 | 0.9 | 7.3 | (0.9) | 12.0 |
+----------------------------+----------+----------+----------+--------------+--------+
| Unallocated corporate | | | | | 9.7 |
| assets | | | | | |
+----------------------------+----------+----------+----------+--------------+--------+
| | | | | | 21.7 |
+----------------------------+----------+----------+----------+--------------+--------+
Segmental information by business segment for 6 months to 30 June 2009
+----------------------------+----------+----------+--------------+--------------+--------+
| | | | Los | | |
| | Product | Services | Angeles | | |
| | Division | Division | Division | Eliminations | Total |
| | 6 months | 6 months | 6 months | 6 months to | 6 |
| | to | to | to | 30 June | months |
| | 30 June | 30 June | 30 June | 2009 | to |
| | 2009 | 2009 | 2009 | GBP'm | 30 |
| | GBP'm | GBP'm | GBP'm | | June |
| | | | | | 2009 |
| | | | | | GBP'm |
+----------------------------+----------+----------+--------------+--------------+--------+
| | | | | | |
| Revenue | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| Travel supplies, catering | 10.3 | 20.8 | 8.2 | - | 39.8 |
| and media services | - | 0.4 | - | - | 0.4 |
| Supply chain management | - | 0.1 | - | - | 0.1 |
| Marketing, design and | | | | | |
| consultancy | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| Total revenue | 10.3 | 21.3 | 8.2 | - | 39.8 |
+----------------------------+----------+----------+--------------+--------------+--------+
| | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| Result | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| Segment result before | (0.4) | - | 0.2 | - | (0.2) |
| exceptional items | (0.1) | (0.3) | (0.5) | - | (0.9) |
| Exceptional costs | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| Segment result | (0.5) | (0.3) | (0.3) | - | (1.1) |
+----------------------------+----------+----------+--------------+--------------+--------+
| Unallocated corporate | | | | | (0.9) |
| expenses | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| Unallocated exceptional | | | | | (0.2) |
| banking costs | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| Operating loss | | | | | (2.2) |
+----------------------------+----------+----------+--------------+--------------+--------+
| Finance costs | | | | | (0.4) |
+----------------------------+----------+----------+--------------+--------------+--------+
| Income tax | | | | | - |
+----------------------------+----------+----------+--------------+--------------+--------+
| Loss after tax | | | | | (2.6) |
+----------------------------+----------+----------+--------------+--------------+--------+
| | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| Other information | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| Segment assets | 3.8 | 12.7 | 6.3 | - | 22.8 |
+----------------------------+----------+----------+--------------+--------------+--------+
| Unallocated corporate | | | | | 13.2 |
| assets | | | | | |
+----------------------------+----------+----------+--------------+--------------+--------+
| | | | | | 36.0 |
+----------------------------+----------+----------+--------------+--------------+--------+
Segmental information by business segment for 12 months to 31 December 2009
+--------------------------+----------+----------+----------+--------------+----------+
| | | | Los | | |
| | Product | Services | Angeles | | |
| | Division | Division | Division | Eliminations | Total |
| | 12 | 12 | 12 | 12 months to | 12 |
| | months | months | months | 31 December | months |
| | to | to | to | 2009 | to |
| | 31 | 31 | 31 | GBP'm | 31 |
| | December | December | December | | December |
| | 2009 | 2009 | 2009 | | 2009 |
| | GBP'm | GBP'm | GBP'm | | GBP'm |
+--------------------------+----------+----------+----------+--------------+----------+
| | | | | | |
| Revenue | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Travel supplies, | 20.4 | 38.3 | 15.1 | - | 73.8 |
| catering and media | - | 0.5 | - | - | 0.5 |
| services | - | 0.2 | - | - | 0.2 |
| Supply chain management | | | | | |
| Marketing, design and | | | | | |
| consultancy | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Total revenue | 20.4 | 39.0 | 15.1 | - | 74.5 |
+--------------------------+----------+----------+----------+--------------+----------+
| | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Result | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Segment result before | (0.1) | 0.3 | 0.3 | - | 0.5 |
| exceptional items | (0.5) | (0.3) | (0.6) | - | (1.4) |
| Exceptional costs | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Segment result | (0.6) | - | (0.3) | - | (0.9) |
+--------------------------+----------+----------+----------+--------------+----------+
| Unallocated corporate | | | | | (1.7) |
| expenses | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Unallocated exceptional | | | | | (1.0) |
| banking costs | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Unallocated other | | | | | (0.1) |
| exceptional costs | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Operating loss | | | | | (3.7) |
+--------------------------+----------+----------+----------+--------------+----------+
| Share of joint venture's | | | | | (0.4) |
| net loss | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Finance costs | | | | | (0.6) |
+--------------------------+----------+----------+----------+--------------+----------+
| Income tax credit | | | | | 0.1 |
+--------------------------+----------+----------+----------+--------------+----------+
| Loss after tax | | | | | (4.6) |
+--------------------------+----------+----------+----------+--------------+----------+
| | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Other information | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| Segment assets | 5.4 | 5.7 | 6.6 | (2.1) | 15.6 |
+--------------------------+----------+----------+----------+--------------+----------+
| Unallocated corporate | | | | | 12.7 |
| assets | | | | | |
+--------------------------+----------+----------+----------+--------------+----------+
| | | | | | 28.3 |
+--------------------------+----------+----------+----------+--------------+----------+
4. EXCEPTIONAL ITEMS
+-----------------------------------------+---------+---------+----------+
| | 6 | 6 | 12 |
| | months | months | months |
| | to | to | to |
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | GBP'm | GBP'm | 2009 |
| | | | GBP'm |
+-----------------------------------------+---------+---------+----------+
| | | | |
| Banking costs | 0.3 | 0.2 | 1.0 |
| Re-organisation costs | 0.3 | 0.4 | 0.7 |
| Exceptional impairment of investment in | 1.2 | - | - |
| joint venture | - | 0.5 | 0.6 |
| Los Angeles start-up costs | - | - | 0.1 |
| Settlement of contract | - | - | 0.1 |
| Other | | | |
+-----------------------------------------+---------+---------+----------+
| Total exceptional items | 1.8 | 1.1 | 2.5 |
+-----------------------------------------+---------+---------+----------+
The exceptional items incurred during the period were as follows:
· The banking costs mainly relate to bank facility fees in respect of the
overdraft facility that are significantly in excess of reasonably normal levels.
· The re-organisation costs primarily relate to redundancies.
· The investment in joint venture has been written down to its recoverable
value. This followed the loss of a key contract and the scope of another being
materially reduced along with steps planned to restructure the business that
will lead to an overall smaller operation.
5. LOSS PER SHARE
The basic loss per share is calculated by dividing the after tax loss for the
period attributable to equity shareholders (numerator) by the weighted average
number of ordinary shares in issue during the period (denominator).
The diluted loss per share is calculated using the same numerator with the
denominator adjusted for the dilutive effects of share options and shares to be
issued. As the Group has made a loss for the first 6 months of the year, no
adjustment is made to the denominator for the impact of share options and shares
to be issued because the potential shares are anti-dilutive.
The adjusted loss per share, both basic and diluted, use the denominator
described in the appropriate paragraphs above. For both adjusted basic loss per
share and adjusted diluted loss per share, the numerator is adjusted to remove
the post tax impact of exceptional items from the calculations.
The following represents loss and share data used to calculate basic, diluted
and adjusted earnings per share:
+------------------------------------+----------+----------+------------+
| | 6 months | 6 months | 12 months |
| | to | to | to |
| Loss table | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | GBP'm | GBP'm | 2009 |
| | | | GBP'm |
+------------------------------------+----------+----------+------------+
| | | | |
| Loss attributable to equity | (2.4) | (2.6) | (4.6) |
| shareholders | 1.8 | 1.1 | 2.5 |
| Exceptional items (post tax) | | | |
+------------------------------------+----------+----------+------------+
| Adjusted loss after tax | (0.6) | (1.5) | (2.1) |
| attributable to equity | | | |
| shareholders | | | |
+------------------------------------+----------+----------+------------+
+------------------------------------+-------------+-------------+-------------+
| | Weighted | Weighted | Weighted |
| | average | average | average |
| | shares | shares | shares |
| | 6 months | 6 months | 12 months |
| Share table | to | to | to |
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | Number | Number | 2009 |
| | | | Number |
+------------------------------------+-------------+-------------+-------------+
| | | | |
| Weighted average shares for basic | 290,572,553 | 290,572,553 | 290,572,553 |
| loss per share | | | |
+------------------------------------+-------------+-------------+-------------+
| | | | |
| Weighted average shares for | 290,572,553 | 290,572,553 | 290,572,553 |
| diluted loss per share | | | |
+------------------------------------+-------------+-------------+-------------+
+------------------------------------+-----------+----------+------------+
| | Loss per | Loss per | Loss per |
| | share | share | share |
| | 6 months | 6 months | 12 months |
| Loss per share table | to | to | to |
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | Pence | Pence | 2009 |
| | | | Pence |
+------------------------------------+-----------+----------+------------+
| | | | |
| Basic loss per share | (0.8) | (0.9) | (1.6) |
| Diluted loss per share | (0.8) | (0.9) | (1.6) |
| Adjusted basic loss per share | (0.2) | (0.5) | (0.7) |
| Adjusted diluted loss per share | (0.2) | (0.5) | (0.7) |
+------------------------------------+-----------+----------+------------+
6. FINANCE COSTS
+------------------------------------+-----------+----------+------------+
| | 6 months | 6 months | 12 months |
| | to | to | to |
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | GBP'm | GBP'm | 2009 |
| | | | GBP'm |
+------------------------------------+-----------+----------+------------+
| | | | |
| Bank loans and overdrafts | 0.1 | 0.2 | 0.2 |
| Finance charges payable under | 0.1 | 0.1 | 0.2 |
| finance leases | - | 0.1 | 0.2 |
| Other interest | | | |
+------------------------------------+-----------+----------+------------+
| Total finance costs | 0.2 | 0.4 | 0.6 |
+------------------------------------+-----------+----------+------------+
7. PROPERTY, PLANT AND EQUIPMENT
During the period, plant and equipment has been purchased amounting to GBP0.1
million (6 months to 30 June 2009: GBP0.2 million). There were no asset
disposals in the reporting period.
8. CAPITAL COMMITMENTS
Capital commitments contracted for but not provided for at 30 June 2010 amounted
to nil (30 June 2009: nil).
9. NET DEBT
+------------------------------------+-----------+----------+------------+
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | GBP'm | GBP'm | 2009 |
| | | | GBP'm |
+------------------------------------+-----------+----------+------------+
| | | | |
| Cash and short term deposits | 1.2 | 1.1 | 1.7 |
+------------------------------------+-----------+----------+------------+
| | | | |
| Current interest bearing loans and | | | |
| borrowings: | (0.5) | (0.5) | (0.5) |
| Obligations under finance leases | (2.0) | (4.6) | (0.8) |
| Bank loans and overdraft | | | |
+------------------------------------+-----------+----------+------------+
| | (2.5) | (5.1) | (1.3) |
+------------------------------------+-----------+----------+------------+
| | | | |
| Non-Current interest bearing loans | | | |
| and borrowings: | (0.8) | (1.2) | (0.9) |
| Obligations under finance leases | | | |
+------------------------------------+-----------+----------+------------+
| | | | |
| Net debt | (2.1) | (5.2) | (0.5) |
+------------------------------------+-----------+----------+------------+
10. CASH AND CASH EQUIVALENTS
+------------------------------------+-----------+----------+------------+
| | 30 June | 30 June | 31 |
| | 2010 | 2009 | December |
| | GBP'm | GBP'm | 2009 |
| | | | GBP'm |
+------------------------------------+-----------+----------+------------+
| | | | |
| Cash and short term deposits | 1.2 | 1.1 | 1.7 |
| Bank overdraft | (2.0) | - | (0.8) |
+------------------------------------+-----------+----------+------------+
| Cash and cash equivalents | (0.8) | 1.1 | 0.9 |
+------------------------------------+-----------+----------+------------+
11. EVENTS AFTER BALANCE SHEET DATE
On 3 September 2010, the Group entered a GBP4.5 million facility with a term of
three years and repaid its existing indebtedness to Barclays Bank plc. Under the
facility, warrants were issued over up to 35,185,825 new ordinary shares
exercisable at a price of 1 pence per share on or before 2 September 2020.
12. INTERIM RESULTS
In accordance with AIM Rules 20 and 26, copies of the Interim Results will be
available at the Company's website www.journeygroup.plc.uk.
INDEPENDENT REVIEW REPORT TO JOURNEY GROUP PLC
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half yearly financial report for the six months ended 30 June
2010 which comprises the condensed consolidated income statement, condensed
consolidated statement of comprehensive income, condensed consolidated balance
sheet, condensed consolidated cash flow statement, condensed consolidated
statement of changes in equity and notes 1 to 11. We have read the other
information contained in the half yearly financial report which comprises only
the Chairman's Letter to Shareholders and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.
This report is made solely to the Company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the Company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company, for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the Directors. The Directors are responsible for preparing the interim
report in accordance with the AIM Rules.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, 'Interim Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 June 2010 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union, and the AIM Rules.
GRANT THORNTON UK LLP
REGISTERED AUDITORS
CHARTERED ACCOUNTANTS
LONDON
This information is provided by RNS
The company news service from the London Stock Exchange
END
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