TIDMJNY
RNS Number : 2937N
Journey Group PLC
27 September 2012
27 September 2012
Journey Group plc
Interim Results
for the six months ended 30 June 2012
Journey Group plc (the "Group") a leading provider of catering
services and in-flight products to the international airline and
travel industries today announces its results for the six months
ended 30 June 2012.
Key highlights
-- Adjusted profit before tax of GBP338,000 (H1 2011: GBP74,000)
-- Adjusted basic earnings per share 0.09p (H1 2011: 0.02p)
-- Net cash at 30 June 2012 of GBP1,830,000 and at 31 August 2012 of GBP3,250,000
-- Improved financial results driven by the US Division
-- Award by United Airlines of the former Continental traffic
bringing the average number of United Airlines flights up to
approaching 100 flights per day positions the US Division for
significant growth in 2013
-- Capital reduction completed and expected to restore the ability to pay dividends
Stephen Yapp, Executive Chairman commented
"The financial results for the first half of this financial year
demonstrate the resilience of the Group's businesses, particularly
the US model, and the capability of its management teams in
challenging conditions.
Trading in the second half of the year continues to be in line
with market expectations and the prospects for 2013 are positive
following the award to the US Division by United Airlines of the
former Continental flight traffic. In these circumstances and from
a solid platform, your Board looks forward with confidence to
delivering shareholder value."
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
Singer Capital Markets Limited (Nominated Advisor &
Broker)
Jonny Franklin-Adams
Matt Thomas
Tel: +44 (0) 20 3205 7500
EXECUTIVE CHAIRMAN'S LETTER TO SHAREHOLDERS
INTRODUCTION
Your Group continues to make significant progress both
financially and strategically despite increasingly competitive
conditions in its markets.
The key highlights for the half year were as follows:
-- Adjusted profit before tax of GBP338,000 (H1 2011: GBP74,000)
-- Adjusted basic earnings per share 0.09p (H1 2011: 0.02p)
-- Net cash at 30 June 2012 of GBP1,830,000 and at 31 August 2012 of GBP3,250,000
-- Improved financial results driven by the US Division
-- Award by United Airlines of the former Continental traffic
bringing the average number of United Airlines flights up to
approaching 100 flights per day positions the US Division for
significant growth in 2013
-- Capital reduction completed and expected to restore the ability to pay dividends
MARKET CONDITIONS
Total year on year passenger traffic growth to 30 June 2012
amounted to 6.1%, but this masks a significant slow down in growth,
particularly over Q2 2012 and continuing into Q3, driven by poor
economic conditions and declining business confidence. In the zones
most served by the Group, growth in total passenger traffic was
mixed with North America up just 1.1%, but Asia Pacific up 6.3% and
Europe up 7.0%. In response to the lower growth, airlines have
reduced capacity growth with resulting stronger passenger load
factors, which have reached relatively high levels and provide some
support for profitability despite high aviation fuel prices. Whilst
the USA continues to show evidence of some economic recovery, most
other major economies worldwide have slipped steadily into slower
growth. Whilst these circumstances prevail and uncertainty remains
over the stability of the Eurozone, growth in passenger traffic and
freight seems likely to continue to be restrained leading to
competitive conditions in the Group's markets remaining at elevated
levels.
REDUCTION OF CAPITAL
With the Group's turnaround complete, its transition to a focus
on growth and present strong financial position, steps have been
taken to remove the final legacy of its earlier financial
difficulties that led to the Company's negative retained earnings
at 31 December 2011 of GBP26,276,000 and so created a block to any
possible payment of dividends to shareholders. On 28 May 2012 a
reduction of capital was announced under which the Company's share
premium account and capital redemption reserve, which at 31
December 2011 totalled GBP36,521,000, would be cancelled and,
subject to measures being taken for the protection of the Company's
creditors, create positive distributable reserves that may in due
course be used to facilitate the payment of dividends. The
proposals were approved by shareholders on 27 June 2012 and became
effective on 26 July 2012 following approval by the High Court and
filing at Companies House. It is expected that measures for the
protection of the Company's creditors will be in place by 31
December 2012, which will lead to substantial positive retained
earnings at that date. With dividend capacity established the Board
will have an additional avenue through which to deliver value to
shareholders in future.
RESULTS
The results for the half year were as follows:
6 months to 30 June 2012 2011
GBP'000 GBP'000
------------------------------------------------------ -------- ---------
Continuing operations
Revenue 20,093 20,119
------------------------------------------------------ -------- ---------
EBITDA before exchange differences 821 618
Exchange differences (11) (41)
------------------------------------------------------ -------- ---------
EBITDA before share based payments 810 577
Depreciation and amortisation (380) (370)
------------------------------------------------------ -------- ---------
Operating profit before share based payments 430 207
Finance charges (92) (133)
------------------------------------------------------ -------- ---------
Adjusted profit before tax from continuing operations 338 74
Share based payments (84) (376)
------------------------------------------------------ -------- ---------
Profit/(loss) before tax from continuing operations 254 (302)
Income tax expense (57) (6)
------------------------------------------------------ -------- ---------
Profit/(loss) after tax from continuing operations 197 (308)
Discontinued operations
Loss from discontinued operations - (1,064)
------------------------------------------------------ -------- ---------
Profit/(loss) attributable to equity shareholders 197 (1,372)
------------------------------------------------------ -------- ---------
Basic earnings/(loss) per share from continuing
operations 0.06p (0.11p)
Adjusted basic earnings per share from continuing
operations 0.09p 0.02p
Basic earnings/(loss) per share from continuing
and discontinued operations 0.06p (0.47p)
------------------------------------------------------ -------- ---------
Driven by the US Division, the Group's financial results
improved significantly over H1 2011. The Products Division produced
a mixed trading performance.
Revenues from continuing operations were almost unchanged at
GBP20,093,000, but EBITDA before exchange differences increased 33%
to GBP821,000. Operating profit before share based payments
increased 108% to GBP430,000. Adjusted profit before tax from
continuing operations improved considerably to GBP338,000 compared
with GBP74,000 in H1 2011. Adjusted earnings per share from
continuing operations amounted to 0.09 pence compared with 0.02
pence in H1 2011. The Board considers that adjusted profit before
tax and adjusted earnings per share provide a better guide to the
underlying performance of the Group.
The reduction in the charge for share based payments to
GBP84,000 from GBP376,000 in H1 2011 was due to the absence of the
GBP292,000 charge in H1 2011 in respect of the prior period
vesting. These charges relate to the management incentive scheme
for the Company's Executive Directors and are non-cash fair value
charges. A final charge of GBP84,000 will be made in H2 2012. On a
statutory basis, profit before tax from continuing operations was
GBP254,000 compared with a loss of GBP302,000 in H1 2011. There was
a profit attributable to equity shareholders of GBP197,000 compared
with a loss of GBP1,372,000 in H1 2011, which included a loss from
discontinued operations of GBP1,064,000.
Net cash at the half year end amounted to GBP1,830,000,
comprising cash of GBP2,104,000 less debt under finance leases of
GBP274,000, compared with net cash of GBP2,055,000 at 31 December
2011. The reduction in net cash of GBP225,000 was due to an
increase in working capital of GBP707,000, which mainly arose from
the timing of sales resulting in significantly higher trade
receivables in June 2012 than in December 2011. At 31 August 2012,
net cash had risen to GBP3,250,000.
US DIVISION
6 months to 30 June 2012 2011
GBP'000 GBP'000
--------------------------------------------- -------- --------
Revenue 8,364 7,298
--------------------------------------------- -------- --------
EBITDA before share based payments 925 747
--------------------------------------------- -------- --------
Operating profit before share based payments 597 431
--------------------------------------------- -------- --------
The US Division produced a strong performance ahead of its
expectations and in an environment of slow growth coupled with its
largest customer, United Airlines, dealing with the complexity of
its merger with the former Continental.
Revenues increased by 15% to GBP8,364,000 through a combination
of increased food sales arising from a higher proportion of cater
sourced food and higher handling fees driven by improved pricing.
EBITDA before exceptional items and share based payments grew by
24% to GBP925,000 leading to operating profit before exceptional
items and share based payments being 39% better at GBP597,000.
Following the merger of United Airlines and Continental, the US
Division has recently been awarded the former Continental traffic.
These additional flights, which are expected to commence in early
November 2012, will bring the average number of United Airlines
flights up to approaching 100 flights per day compared with an
average of 69 flights a day in 2011. During high season there will
be approximately 115 flights a day and approximately 90 flights a
day in low season. The US Division was delighted to be awarded this
business, which represents a substantial step forward, positions
the US Division for significant growth during 2013, and further
underlines the benefits to both customer and the US Division of its
unique business model.
For the fourth consecutive half year the Los Angeles facility
has met or exceeded all of its performance goals of reliability and
food quality as perceived by passenger ratings. It was once again
recognised by United Airlines for its outstanding service and
awarded best hub worldwide for on-time performance and food
quality.
Los Angeles International Airport measured in passenger traffic
is one of the most visited international airports in the USA and is
the 6(th) largest airport worldwide. The US Division has a
significant share of the LAX catering market and has demonstrated
its ability to deliver high quality service at competitive pricing.
The US Division's patented business model continues to receive
interest from international and domestic airlines and its focus
remains on filling the remaining capacity at the Los Angeles
facility and developing new business opportunities and strategic
partnerships. With opportunities identified to execute on these
objectives, the US Division has become the key focus of growth.
PRODUCTS DIVISION
6 months to 30 June 2012 2011
GBP'000 GBP'000
--------------------------------------------- -------- --------
Revenue 11,729 12,821
--------------------------------------------- -------- --------
EBITDA before non-recurring items 79 244
Non-recurring items 111 -
--------------------------------------------- -------- --------
EBITDA before exchange differences 190 244
Exchange differences (6) (28)
--------------------------------------------- -------- --------
EBITDA before share based payments 184 216
--------------------------------------------- -------- --------
Operating profit before share based payments 132 176
--------------------------------------------- -------- --------
It has been a mixed trading period for the Products Division.
Two major product launches in Watermark during 2011 saw inflated
volumes in that year, which has led to the fall in revenues of 9%
in the current period. However, as the airlines work through the
impact of these launches we anticipate that more normalised
activity will return in 2013.
EBITDA fell significantly to GBP79,000 before taking into
account non-recurring items amounting to a credit of GBP111,000.
This credit comprised the release of accruals and inventory
provision of GBP208,000 less a bad debt write off of GBP97,000. The
accruals and inventory provision arose primarily in the previous
year mainly as a consequence of uncertainties relating to contract
terms and renewals that have been resolved and, accordingly, are no
longer considered necessary.
Further consolidation in the Products Division's market has
reduced competitor numbers and extended the reach and size of the
major player. This along with the general economic uncertainty has
led to a reduction in overall contract activity and wins for
Watermark.
MNH Sustainable Cabin Services faced more benign conditions,
although it suffered a bad debt of GBP97,000 through the insolvency
of a distributor of certain products. The distributor was quickly
replaced with only a minimal loss to on-going revenues.
Looking forward from a tactical and operational standpoint,
Watermark will continue to pursue its stated plans of targeted
opportunities in the airline sector whilst strategically working
through options to counter the recent significant shift in its
market place.
MNH expects stable conditions through the remainder of 2012. It
continues to focus on its unique price per seat model for headsets
and amenity kits, both within the existing customer base and
prospectively to other carriers in the Asia Pacific and USA
regions.
CENTRAL COSTS
6 months to 30 June 2012 2011
GBP'000 GBP'000
--------------------------------------------- -------- --------
EBITDA before non-recurring item (347) (373)
Non-recurring item 53 -
--------------------------------------------- -------- --------
EBITDA before exchange differences (294) (373)
Exchange differences (5) (13)
--------------------------------------------- -------- --------
EBITDA before share based payments (299) (386)
--------------------------------------------- -------- --------
Operating profit before share based payments (299) (400)
--------------------------------------------- -------- --------
Central EBITDA before exchange differences was 21% lower than in
H1 2011, benefitting from continued close control and the reduction
of GBP53,000 in an historic accrual in accordance with a revised
estimate.
BOARD
As announced earlier in the year, Max Lesser has been appointed
as a Non-executive Director. Max's appointment extends the Board's
skill set and creates a better balance in pursuing the Company's
objective of creating shareholder value.
OUTLOOK
The financial results for the first half of this financial year
demonstrate the resilience of the Group's businesses, particularly
the US model, and the capability of its management teams in
challenging conditions. Trading in the second half of the year
continues to be in line with market expectations and the prospects
for 2013 are positive following the award to the US Division by
United Airlines of the former Continental flight traffic. In these
circumstances and from a solid platform, your Board looks forward
with confidence to delivering shareholder value.
Stephen Yapp
Executive Chairman
UNAUDITED CONDENSED CONSOLIDATED INCOME
STATEMENT
for the 6 months to 30 June 2012
6 months 6 months 12 months
to to to
30 June 30 June 31 December
Note 2012 2011 2011
GBP'000 GBP'000 GBP'000
------------------------------------------ --- ------ ---------- ---------- ------------
Continuing operations
Revenue 3 20,093 20,119 42,639
Cost of sales (15,082) (15,468) (32,907)
--------------------------------------------------- ------ ---------- ---------- ------------
Gross profit 5,011 4,651 9,732
Operating and administrative costs (4,665) (4,820) (9,580)
Operating profit/(loss) 3 346 (169) 152
--------------------------------------------------- ------ ---------- ---------- ------------
Operating profit before share based payments 430 207 658
Share based payments 4 (84) (376) (506)
--------------------------------------------------- ------ ---------- ---------- ------------
Finance costs 6 (92) (133) (289)
--------------------------------------------------- ------ ---------- ---------- ------------
(302)
Profit/(loss) before tax from continuing
operations 254 (6) (137)
Income tax expense
(57) (59)
--------------------------------------------------- ------ ---------- ---------- ------------
Profit/(loss) after tax from continuing
operations 3 197 (308) (196)
Discontinued operations
Loss from discontinued operations - (1,064) (1,072)
--------------------------------------------------- ------ ---------- ---------- ------------
Profit/(loss) attributable to equity
shareholders 197 (1,372) (1,268)
--------------------------------------------------- ------ ---------- ---------- ------------
Earnings/(loss) per share from continuing
and discontinued operations
Basic 5 0.06p (0.47p) (0.43p)
Diluted 5 0.06p (0.47p) (0.43p)
Earnings/(loss) per share from continuing
operations
Basic 5 0.06p (0.11p) (0.07p)
(0.07p)
Diluted 5 0.06p (0.11p)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
for the 6 months to 30 June 2012
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
--------------------------------------------------- -------- --------- ------------
Profit/(loss) attributable to equity shareholders 197 (1,372) (1,268)
Other comprehensive (loss)/income
Exchange differences on translating foreign
operations (48) (91) 58
--------------------------------------------------- -------- --------- ------------
Other comprehensive (loss)/income, net of
tax (48) (91) 58
--------------------------------------------------- -------- --------- ------------
Total comprehensive income/(loss) attributable
to equity shareholders of the parent company 149 (1,463) (1,210)
--------------------------------------------------- -------- --------- ------------
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
as at 30 June 2012
Note 30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
---------------------------------------- ----- ---------- ---------- -----------
Assets 7 4,299 4,690 4,588
Non-current assets 3,960 3,960 3,960
Property, plant and equipment 60 14 7
Goodwill
Intangible assets
---------------------------------------- ----- ---------- ---------- -----------
8,319 8,664 8,555
Current assets 8 956 2,249 1,364
Inventories 4,100 4,866 3,450
Trade and other receivables 405 344 238
Prepayments 73 82 69
Current income tax 2,104 1,385 2,591
Cash and short-term deposits
---------------------------------------- ----- ---------- ---------- -----------
7,638 8,926 7,712
Assets classified as held for sale - 1,637 -
---------------------------------------- ----- ---------- ---------- -----------
7,638 10,563 7,712
---------------------------------------- ----- ---------- ---------- -----------
Total assets 15,957 19,227 16,267
---------------------------------------- ----- ---------- ---------- -----------
3,098 2,953 3,098
Equity and liabilities 36,497 36,352 36,497
Equity attributable to equity share
owners of the parent 100 100 100
Issued share capital 24 24 24
Share premium account 1,521 1,521 1,521
Shares to be issued (991) (1,092) (943)
Capital redemption reserve (30,276) (30,830) (30,557)
Merger reserve
Foreign currency translation reserve
Retained earnings
---------------------------------------- ----- ---------- ---------- -----------
Total equity 9,973 9,028 9,740
Non-current liabilities
Interest bearing loans and borrowings 8 - 176 12
---------------------------------------- ----- ---------- ---------- -----------
Current liabilities 8 5,710 8,283 5,991
Trade and other payables 274 1,179 524
Interest bearing loans and borrowings
---------------------------------------- ----- ---------- ---------- -----------
5,984 9,462 6,515
Liabilities classified as held
for sale - 561 -
---------------------------------------- ----- ---------- ---------- -----------
5,984 10,023 6,515
---------------------------------------- ----- ---------- ---------- -----------
Total liabilities 5,984 10,199 6,527
---------------------------------------- ----- ---------- ---------- -----------
Total equity and liabilities 15,957 19,227 16,267
---------------------------------------- ----- ---------- ---------- -----------
UNAUDITED CONDENSED CONSOLIDATED CASH FLOW
STATEMENT
for the 6 months to 30 June 2012
6 months 6 months 12 months
to to to
30 June 30 June 31 December
2012 2011 2011
GBP'000 GBP'000 GBP'000
---------------------------------------------- --- -------- --------- ------------
Net cash flows from operating activities 197 (308) (196)
Continuing operations 380 370 768
Profit/(loss) after tax from continuing
operations 84 376 506
Depreciation and amortisation 92 133 289
Share based payments 57 6 59
Finance costs 408 (442) 443
Income tax expense (834) (368) 1,118
Decrease/(increase) in inventories (281) 685 (1,607)
(Increase)/decrease in trade and
other receivables
(Decrease)/increase in trade and
other payables
--------------------------------------------------- -------- --------- ------------
Cash flows generated from continuing
operations 103 452 1,380
Discontinued operations - (27) (48)
Cash used in discontinued operations
--------------------------------------------------- -------- --------- ------------
Cash flows generated from operations 103 425 1,332
Interest paid (75) (169) (289)
Income taxes paid (61) (7) (47)
--------------------------------------------------- -------- --------- ------------
Net cash flows (used in)/generated from
operating activities (33) 249 996
--------------------------------------------------- -------- --------- ------------
Cash flows from investing activities - - 1,070
Continuing operations (131) (54) (199)
Disposal of subsidiary company (55) - (3)
Purchase of property, plant and equipment
Purchase of intangible assets
--------------------------------------------------- -------- --------- ------------
Cash flows (used in)/generated from continuing
operations (186) (54) 868
Discontinued operations - (19) -
Purchase of property, plant and equipment
--------------------------------------------------- -------- --------- ------------
Net cash flows (used in)/generated from
investing activities (186) (73) 868
--------------------------------------------------- -------- --------- ------------
Cash flows from financing activities - 8 337
Continuing operations - 645 -
Proceeds from issue of shares (262) (1,769) (1,943)
Proceeds from borrowings
Payment of loan and finance lease obligations
--------------------------------------------------- -------- --------- ------------
Net cash flows used in financing activities (262) (1,116) (1,606)
--------------------------------------------------- -------- --------- ------------
Net (decrease)/increase in cash and cash
equivalents (481) (940) 258
Net foreign exchange difference (6) 35 43
Cash and cash equivalents at beginning
of period 2,591 2,290 2,290
--------------------------------------------------- -------- --------- ------------
Cash and cash equivalents at end
of period 2,104 1,385 2,591
--------------------------------------------------- -------- --------- ------------
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
for the 6 months to 30 June 2012
Condensed consolidated statement of changes in equity for the 6
months to 30 June 2012
Foreign
Issued Share Shares Capital currency
share premium to be redemption Merger translation Retained Total
capital account issued reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
At 1 January 2012 3,098 36,497 100 24 1,521 (943) (30,557) 9,740
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Share based payments - - - - - - 84 84
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Transactions with
owners - - - - - - 84 84
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Profit attributable
to equity - - - - - 197 197
shareholders - - - - - (48) - (48)
Other comprehensive
loss:
Exchange differences
on
translating foreign
operations -
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Total comprehensive
income - - - - - (48) 197 149
At 30 June 2012 3,098 36,497 100 24 1,521 (991) (30,276) 9,973
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Condensed consolidated statement of changes in equity for the 6
months to 30 June 2011
Foreign
Issued Share Shares Capital currency
share premium to be redemption Merger translation Retained Total
capital account issued reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
At 1 January 2011 2,906 36,352 100 24 1,521 (1,001) (29,795) 10,107
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Issue of ordinary
shares 47 - - - - - - 47
Exercise of share
options - - - - - - (39) (39)
Share based payments - - - - - - 376 376
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Transactions with
owners 47 - - - - - 337 384
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Loss attributable
to equity - - - - - (1,372) (1,372)
shareholders - - - - - (91) - (91)
Other comprehensive
loss:
Exchange differences
on
translating foreign
operations -
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Total comprehensive
loss - - - - - (91) (1,372) (1,463)
At 30 June 2011 2,953 36,352 100 24 1,521 (1,092) (30,830) 9,028
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Condensed consolidated statement of changes in equity for the 12
months to 31 December 2011
Foreign
Issued Share Shares Capital currency
share premium to be redemption Merger translation Retained Total
capital account issued reserve reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
At 1 January 2011 2,906 36,352 100 24 1,521 (1,001) (29,795) 10,107
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Issue of ordinary
shares 192 145 - - - - - 337
Share based payments - - - - - - 506 506
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Transactions with
owners 192 145 - - - - 506 843
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Loss attributable
to equity - - - - - - (1,268) (1,268)
shareholders - - - - - 58 - 58
Other comprehensive
income:
Exchange differences
on
translating foreign
operations
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
Total comprehensive
loss - - - - - 58 (1,268) (1,210)
At 31 December 2011 3,098 36,497 100 24 1,521 (943) (30,557) 9,740
---------------------- --------- --------- --------- ------------ --------- ------------ ---------- ---------
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
ACCOUNTS
for the 6 months to 30 June 2012
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 2011 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 records or returns inadequate,
accounts not agreeing with records and returns or failure to obtain
necessary information and explanations) of the Companies Act 2006.
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 2012 are unchanged from those adopted
in the financial statements for the year ended 31 December
2011.
ii. Statement of compliance
These interim consolidated financial statements are for the six
months ended 30 June 2012. 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 2011.
3. SEGMENTAL REPORTING
The Group is organised into two primary business segments, the
US and Products Divisions. These reportable segments are the
strategic divisions for which monthly financial information is
provided to the Chief Operating Decision Maker.
The US Division is a supplier of catering to the domestic and
international travel industry within the United States of America.
The Products Division provides a broad range of travel supplies
predominately to the international travel industry on a global
basis.
Segmental assets include all operating assets used by a segment
and consist principally of operating cash, receivables,
prepayments, inventories, goodwill and property, plant and
equipment, net of allowances and provisions. Where allocation
across segments is not possible, they are classified as unallocated
corporate assets.
Segmental information by business segment for 6 months to 30
June 2012
US Products Total
Division Division GBP'000
GBP'000 GBP'000
------------------------------- --------- --------- ---------
Revenue
Continuing operations
Travel supplies and catering
services 8,364 11,729 20,093
------------------------------- --------- --------- ---------
Result
Continuing operations
Segment result 597 132 729
------------------------------- --------- ---------
Unallocated corporate expenses (299)
Share based payments (84)
Operating profit 346
Finance costs (92)
Income tax expense (57)
---------
Profit attributable to equity
shareholders 197
---------
Other information
Segment assets 6,408 5,402 11,810
Unallocated corporate assets 4,147
---------
Total assets 15,957
---------
Segmental information by business segment for 6 months to 30
June 2011
US Products Total
Division Division GBP'000
GBP'000 GBP'000
---------------------------------- --------- --------- ---------
Revenue
Continuing operations
Travel supplies and catering
services 7,298 12,821 20,119
---------------------------------- --------- --------- ---------
Result
Continuing operations
Segment result 431 176 607
---------------------------------- --------- ---------
Unallocated corporate expenses (400)
Share based payments (376)
Operating loss (169)
Finance costs (133)
Income tax expense (6)
---------
Loss after tax from continuing
operations (308)
Discontinued operations
Loss from discontinued operations (1,064)
---------
Loss attributable to equity
shareholders (1,372)
---------
Other information
Segment assets 5,714 7,899 13,613
Unallocated corporate assets 3,977
---------
Total continuing operations 17,590
Discontinued operations 1,637
---------
Total assets 19,227
---------
Segmental information by business segment for 12 months to 31
December 2011
US Products Total
Division Division GBP'000
GBP'000 GBP'000
---------------------------------- --------- --------- ---------
Revenue
Continuing operations
Travel supplies and catering
services 15,170 27,469 42,639
---------------------------------- --------- --------- ---------
Result
Continuing operations
Segment result 853 634 1,487
---------------------------------- --------- ---------
Unallocated corporate expenses (829)
Share based payments (506)
Operating profit 152
Finance costs (289)
Income tax expense (59)
---------
Loss after tax from continuing
operations (196)
Discontinued operations
Loss from discontinued operations (1,072)
---------
Loss attributable to equity
shareholders (1,268)
---------
Other information
Segment assets 6,051 5,229 11,280
Unallocated corporate assets 4,987
---------
Total assets 16,267
---------
4. EXPENSES
The reduction in the charge for share based payments to
GBP84,000 from GBP376,000 in H1 2011 was due to the absence of the
GBP292,000 charge in H1 2011 in respect of the prior period vesting
under the management incentive scheme.
5. EARNINGS/(LOSS) PER SHARE
The basic earnings/(loss) per share from continuing and
discontinued operations is calculated by dividing the profit/(loss)
attributable to equity shareholders by the weighted average number
of ordinary shares in issue during the period. The basic
earnings/(loss) per share from continuing operations is calculated
by dividing the profit/(loss) after tax from continuing operations
by the weighted average number of ordinary shares in issue during
the period. The basic loss per share from discontinued operations
is calculated by dividing the loss from discontinued operations by
the weighted average number of ordinary shares in issue during the
period.
The diluted earnings/(loss) per share is calculated using the
same numerator with the denominator adjusted for the dilutive
effects of share options and warrants.
The adjusted basic earnings per share uses the denominator
described above with the numerator adjusted to remove the post tax
impact of share based payments.
The following represents the profit/(loss) and share data used
to calculate basic, diluted and adjusted earnings per share:
Profit/(loss) table 6 months to 6 months to 12 months
30 June 2012 30 June 2011 to
GBP'000 GBP'000 31 December
2011
GBP'000
---------------------------------------- ------------- ------------- ------------
197 (1,372) (1,268)
Profit/(loss) attributable to
equity shareholders - 1,064 1,072
Loss from discontinued operations
---------------------------------------- ------------- ------------- ------------
Profit/(loss) after tax from continuing
operations 197 (308) (196)
Share based payments 84 376 506
---------------------------------------- ------------- ------------- ------------
Adjusted profit after tax from
continuing operations 281 68 310
---------------------------------------- ------------- ------------- ------------
Weighted average number of shares 6 months 6 months to 12 months
in issue to 30 June 2011 to
30 June 31 December
2012 2011
------------------------------------ ------------ ------------- ------------
Weighted average shares for basic
earnings/(loss) per share 309,780,243 291,141,279 298,203,887
------------------------------------ ------------ ------------- ------------
Weighted average shares for diluted
earnings/(loss) per share 344,966,068 291,141,279 298,203,887
------------------------------------ ------------ ------------- ------------
Earnings/(loss) per share table 6 months to 6 months to 12 months
30 June 2012 30 June 2011 to
Pence Pence 31 December
2011
Pence
------------------------------------- ------------- ------------- ------------
Basic earnings/(loss) per share 0.06 (0.47) (0.43)
From continuing and discontinued 0.06 (0.11) (0.07)
operations
From continuing operations 0.09 0.02 0.10
Adjusted from continuing operations 0.06 (0.47) (0.43)
Diluted earnings/(loss) per share 0.06 (0.11) (0.07)
From continuing and discontinued 0.08 0.02 0.10
operations
From continuing operations
Adjusted from continuing operations
------------------------------------- ------------- ------------- ------------
6. FINANCE COSTS
6 months to 6 months to 12 months
30 June 2012 30 June 2011 to
GBP'000 GBP'000 31 December
2011
GBP'000
---------------------- ------------- ------------- ------------
Loans and overdrafts 55 86 157
Finance leases 20 44 132
Other interest 17 3 -
---------------------- ------------- ------------- ------------
Total finance costs 92 133 289
---------------------- ------------- ------------- ------------
7. PROPERTY, PLANT AND EQUIPMENT
During the period plant and equipment has been purchased
amounting to GBP131,000 (6 months to 30 June 2011: GBP73,000).
There were no asset disposals in the reporting period. Capital
commitments contracted for but not provided for at 30 June 2012
amounted to GBPnil (30 June 2011: GBPnil).
8. NET FUNDS
30 June 2012 30 June 31 December
GBP'000 2011 2011
GBP'000 GBP'000
------------------------------------ ------------ -------- -----------
Cash and short term deposits 2,104 1,385 2,591
------------------------------------ ------------ -------- -----------
Current interest bearing loans and
borrowings: (274) (534) (524)
Finance leases - (645) -
Bank overdraft and sales finance
liability
------------------------------------ ------------ -------- -----------
(274) (1,179) (524)
------------------------------------ ------------ -------- -----------
Non-current interest bearing loans
and borrowings:
Finance leases - (176) (12)
------------------------------------ ------------ -------- -----------
Net funds 1,830 30 2,055
------------------------------------ ------------ -------- -----------
9. SUBSEQUENT EVENT
Subsequent to 30 June 2012, the Company completed a reduction of
capital under which its share premium account amounting to
GBP36,497,000 and capital redemption reserve amounting to GBP24,000
were cancelled. The total amount cancelled of GBP36,521,000 after
deducting the Company's deficit on retained earnings has been
transferred to a special non-distributable reserve.
10. INTERIM REPORT
The Interim Report will be posted to all shareholders shortly
and, in accordance with AIM Rules 20 and 26, copies of the Interim
Report will be available at the Company's website
www.journeygroup.plc.uk.
INDEPENDENT REVIEW REPORT TO JOURNEY GROUP PLC
Introduction
We have reviewed the condensed set of financial statements in
the half yearly financial report of Journey Group plc for the six
months ended 30 June 2012 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 9. We have read the
other information contained in the half yearly financial report
which comprises only the Executive 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's members those matters we are required
to state to them in an independent 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 and the
Company's members, 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 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 2012 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
IR FMGZLVNDGZZG
Journey Grp (LSE:JNY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Journey Grp (LSE:JNY)
Historical Stock Chart
From Jul 2023 to Jul 2024
