TIDMNTBR
RNS Number : 7330S
Northern Bear Plc
13 July 2020
13 July 2020
Northern Bear PLC
("Northern Bear" or the "Company")
Preliminary results for the year ended 31 March 2020 and
Directorate change
The board of directors of Northern Bear (the "Board") is pleased
to announce its unaudited preliminary results for the year ended 31
March 2020 for the Company and its subsidiaries (together, the
"Group").
Financial summary
-- Revenue of GBP54.4m (2019: GBP56.6m)
-- Operating profit of GBP2.1m (2019: GBP3.3m)
-- Adjusted operating profit* of GBP2.2m (2019: GBP3.2m)
-- Adjusted operating profit* contributed by our trading
subsidiaries of GBP3.1 million (2019: GBP4.3 million)
-- Basic earnings per share of 8.0p (2019: 14.0p)
-- Adjusted basic earnings per share* of 8.7p (2019: 13.5p)
-- Net cash position at year end of GBP0.2m (2019: net cash of GBP2.0m)
-- Results significantly affected by events outside the control of the Group
-- Very strong order book which has continued to grow throughout the year
* stated prior to the impact of amortisation and transaction and
other one-off costs
Steve Roberts, Executive Chairman of Northern Bear,
commented:
"In light of the unprecedented set of circumstances which faced
the Group throughout the financial year, we are very pleased with
the Group's financial performance. Whilst those circumstances meant
that the Group could not generate the level of profitability which
would ordinarily have been possible from its very strong opening
order book, that order book has grown further which should lead to
a sustained period of strong profitability now that a more normal
level of operating activity appears to be in the process of
returning."
For further information contact:
+44 (0) 166
Northern Bear PLC 182 0369
Steve Roberts - Executive Chairman +44 (0) 166
Tom Hayes - Finance Director 182 0369
Strand Hanson Limited (Nominated Adviser
and Broker)
James Harris +44 (0) 20 7409
James Bellman 3494
Chairman's Statement
Introduction
I am pleased to report the results for the year to 31 March 2020
("FY20") for Northern Bear and its subsidiaries (together, the
"Group").
The word 'unprecedented' has been overused in recent times but
is, nonetheless, very appropriate to describe a financial period
which included:
- the lengthy and continuing uncertainty of Brexit;
- the political upheaval of a General Election;
- a spring of record breaking storms; and
- a global pandemic.
It was also a frustrating year. We started the year with an
exceptionally strong order book. That order book then remained with
the Group throughout the year and has continued into FY21, as the
circumstances referred to above prevented us from maximising our
operating performance.
In light of all the above, we are very pleased with the
performance of the Group in FY20.
The continued strength of our order book also stands us in good
stead to produce strong and sustained levels of profitability now
that a more normal level of operating activity appears to be in the
process of returning.
Trading
When we reported our interim results in November 2019, we stated
that we had experienced contract delays in the three months ended
30 June 2019 ("Q1"), but trading had since improved and the strong
momentum in the three months ended 30 September 2019 ("Q2") had
continued into the second half of the financial year.
In December 2019 and January 2020, despite very wet and windy
weather conditions, the Group continued to trade well and broadly
in line with our prior year comparatives, which themselves
represented exceptional results for the Group. Unfortunately, the
severe weather in February, where we experienced three major storms
in the UK and the wettest month on record, had a significant impact
on our ability to work on construction and roofing projects.
Trading in March 2020 began well but, during the course of the
last two weeks of the month, the majority of the Group was impacted
by site closures related to the COVID-19 pandemic. We comment
further on the effects of the pandemic below.
The last two months of the financial year are usually an
important period for the Company and ordinarily account for a
significant proportion of the Group's full year profits. The above
events were all extremely frustrating as we had, and continue to
have, an excellent order book across the Group and our only issue
has been our inability to deliver the work on site due to factors
beyond our control.
In light of the contract delays in Q1, the effects of the
political uncertainty surrounding both Brexit and the General
Election in December, the wet winter which culminated in the storms
of February, and the impact of COVID-19, we are pleased with the
performance for the full year.
Overall turnover was GBP54.4 million (2019: GBP56.6 million) and
gross profit was GBP10.9 million (2019: GBP11.9 million). Gross
margin reduced slightly to 20.0% (2019: 21.1%) as a result of a
change in sales mix. Gross margin remains a key focus for us and we
continue to review our approach to contract tendering and
authorisation.
Administrative expenses were GBP8.7 million (2019: GBP8.7
million), in line with the prior year. Expenses were impacted by
the acquisition of Lister Holdings (York) Limited and its trading
subsidiary J Lister Electrical Limited (together, "J Lister") in
January 2020.
As in the prior year, we have presented amortisation and certain
other adjustments separately within the Consolidated Statement of
Comprehensive Income, in addition to an adjusted earnings per share
calculation in the notes to the accounts, in order to provide an
indication of underlying trading performance.
Operating profit before amortisation and other adjustments is in
line with the estimated range given in our trading update of 31
March 2020 at GBP2.2 million (2019: GBP3.2 million). After taking
adjustments into account, operating profit was GBP2.1 million
(2019: GBP3.3 million). The adjustments in the current year include
the write-back of deferred consideration, transaction costs related
to the acquisition of J Lister and the tender offer in September
2019, payments to departing employees and all associated
professional costs.
We have also presented adjusted earnings per share for the year,
the calculation for which is included later in this document.
Adjusted basic earnings per share was 8.7p (2019: 13.5p). Reported
basic earnings per share was 8.0p (2019: 14.0p).
The element of operating profit before amortisation and other
adjustments contributed by our trading subsidiaries was GBP3.1
million (2019: GBP4.3 million), offset by corporate and central
costs of GBP0.9 million (2019: GBP1.1 million). While we were able
to make some savings on the latter in the year, this cost is more
fixed than variable. Should future subsidiary profits increase via
organic growth or acquisition then central costs would not be
expected to increase proportionately and this would provide some
operating leverage.
Cash flow and bank facilities
The Group had a net cash position (defined as cash balances less
revolving credit facility) of GBP0.2 million at 31 March 2020
(GBP2.0 million at 31 March 2019). Cash generated from operations
during the year was GBP1.4 million (2019: GBP5.1 million).
We stated in the commentary on the 2019 results that the net
cash position at 31 March 2019 reflected some favourable working
capital swings which, to an extent, would be expected to reverse
post year-end. This proved to be the case and the current customer
and contract mix has led to an increased working capital
requirement within the Group. The net cash position was also
impacted by the initial consideration of GBP0.8 million payable for
the J Lister acquisition in January 2020.
As we have emphasised in previous years' results, our net
cash/bank debt position represents a snapshot at a particular point
in time and can move by up to GBP1.5 million in a matter of days,
given the nature, size and variety of contracts that we work on and
the related working capital balances.
The lowest position during the year was GBP4.2 million net bank
debt, the highest was GBP2.0 million net cash, and the average was
GBP1.7 million net bank debt. Following some adverse working
capital movements during the second half of the financial year, the
Group finance function implemented a number of initiatives in an
attempt to improve working capital management procedures and this
has proved invaluable for cash management prior to and during the
COVID-19 pandemic.
The Group's working capital requirements will continue to vary
depending on the ongoing customer and contract mix. I believe that
the Group's cash results, when considered on a rolling basis, have
demonstrated a strong ratio of profit to operating cash
generation.
New bank facilities
Our existing GBP3.5m revolving credit facility with Yorkshire
Bank, which was due for renewal in May 2020, was renewed in March
2020, ahead of schedule and with better terms than those previously
in place. This reflects the strength of our banking relationship
and provides us with committed working capital facilities to May
2023. In addition, we retain a GBP1m overdraft facility, which is
renewable annually.
I would like to thank both our finance team and Yorkshire Bank
for their hard work in ensuring that facilities were renewed ahead
of schedule and prior to the national lockdown which commenced
towards the end of March. We appreciate the continued support of
Yorkshire Bank.
COVID-19 impact and Outlook
The Company was admitted to trading on AIM in 2006, but the
majority of businesses in our Group were established long before
then. On average, our businesses, excluding those established by us
following our listing, were founded some 40 years ago. As such,
most have significant experience and expertise of operating in
challenging periods in the construction industry, including in the
early 1990s and the late 2000s.
We feel confident that we have a robust group of specialist
construction businesses, run by an outstanding team of people and
with a workforce that is second to none.
The impact of the COVID-19 pandemic is unprecedented, in our
experience, and has proved a major challenge. The majority of our
businesses saw construction sites close in late March and, with the
exception of Isoler Limited (our fire protection business), where
many of its ongoing projects were deemed essential works, our Group
companies had limited on-site work opportunities at that time.
At the outset of the COVID-19 pandemic, we asked each of our
subsidiary Managing Directors to produce a plan to be implemented
following the enforced reduction in work levels, which included
using the Coronavirus Job Retention Scheme to temporarily furlough
employees and keeping a tight control over the remaining cost base
and cash. This focus on costs included temporary pay reductions for
the Company's Executive Directors and the Group's senior management
team.
Our priority since then has been to retain and protect our
employees and to seek to resume activities, while following all
Government guidance on operational safety. Special praise must go
to our health and safety advisory business, Northern Bear Safety
Limited. It has played a critical part in managing operations,
working very closely with our employees and customers to implement
and document revised safety guidance in order to ensure that our
employees can resume work in a controlled and safe manner.
I am pleased to say that, while activity levels were low during
April, we have seen a gradual and sustained improvement during the
latter part of May and June, with a number of private sector and
local authority contracts resuming. At the time of writing I am
pleased to state that we are back to circa 75% of normal activity
levels and the short term outlook is positive. Whilst there remains
the possibility of a second wave of COVID-19 infections and renewed
restrictions, the Government has encouraged the construction
industry to remain active and we hope that the revised safety
guidance now in place will reduce future disruption to our site
activities.
In the meantime, we have an even stronger order book, which has
pleasingly continued to increase during the lock down period and
should support a return to a much improved level of operating
performance across the Group in the coming months.
Dividend
In the light of the fact that most of our businesses have been
unable to operate on site with the consequent furloughing of direct
and indirect staff, we have received significant sums from the
Government's Coronavirus Job Retention Scheme. When this is
considered, together with our asking non-furloughed staff to take
temporary pay reductions across the Group, and a number of senior
staff volunteering to reduce their wages even further, we do not
consider it appropriate to return capital to shareholders via a
final dividend for the year ended 31 March 2020.
I would note that, despite the impact of COVID-19 on recent
trading, we have the cash resources available to pay a final
dividend commensurable with last year's level, should it have been
deemed appropriate.
Should trading continue to improve in line with our
expectations, and subject to the ongoing cash requirements of the
Group as a result of the continuing pandemic, then our intention is
to resume dividend payments in respect of the year ending 31 March
2021.
The Board will continue to assess dividend levels generally and
our intention for the longer term remains to adjust future
dividends in line with the Group's relative performance, after
taking into account the Group's available cash, working capital
requirements, corporate opportunities, debt obligations, and the
macro-economic environment at the relevant time.
Strategy and Acquisition
We continue to seek acquisitions of established specialist
building services businesses, either in the same or complementary
sectors to our current operations. Our main criteria are that a
business is well-established in its sector, has a consistent track
record of profitability and cash generation and has a strong
management team who are committed to remaining with the business.
Any potential acquisition would, in addition, need to be earnings
accretive and provide an acceptable return on investment.
In January 2020 we announced the acquisition of Lister Holdings
(York) Limited and its trading subsidiary J Lister Electrical
Limited. We had looked at a large number of opportunities since the
acquisition of H Peel & Sons (Holdings) Limited ("H Peel") in
July 2017. The J Lister acquisition represented a real opportunity
to acquire a well-established, consistently profitable and cash
generative business with a strong management team, committed to
remaining with the business. In addition, J Lister has a number of
opportunities for expansion which the Group is well placed to help
it take advantage of, as well as providing an opportunity to
cross-sell with our existing Group companies. I would like to
welcome all of the J Lister employees to our Group and we look
forward to working with them.
People
Graham Jennings
Graham Jennings left the Board of the Company on 31 March 2020.
Following a board reorganisation in October 2011, Graham became
Group Managing Director, performing that role alongside his
position as Managing Director of Jennings Roofing Limited. Graham
was instrumental in steering the Group to renewed success. In
addition to fulfilling his other duties, Graham also played a key
role in the acquisitions of H Peel and J Lister.
Having put a strong and capable management structure in place at
Jennings Roofing Limited, from April 2018 Graham focused all of his
time on his Group role. One of his primary responsibilities was the
creation of a succession plan for each of the other operating
subsidiaries.
Graham departed in March 2020 having agreed with the rest of the
Board that his primary responsibility had been fulfilled. The
succession plan is now in place at each Group company. He remains a
supporter of Northern Bear and I would like to thank him for his
hard work which has helped in making Northern Bear what it is
today.
There is no immediate plan to replace Graham as the Group's
businesses are well placed to operate independently, without
day-to-day involvement. Graham's Group responsibilities have been
shared amongst the remaining members of the executive management
team.
Jeff Baryshnik
Jeff was appointed as a non-executive Director of the Company on
6 March 2020. Jeff acquired a major interest in the Company's
issued share capital following a tender offer announced on 26
September 2019 and both myself and my colleagues were delighted to
welcome him to the Board. Jeff has substantial experience in the
asset management, real estate and financial services industries and
we look forward to working with him in the coming months and
years.
Howard Gold
Howard Gold, non-executive Director, has retired from the
Company's Board as of today's date. Howard has been involved with
the Group since inception, initially as Deputy Chairman, and was
appointed non-executive Chairman in October 2008. In February 2014
he stepped down from that role in order to focus more on other
business commitments, remaining as a non-executive Director of the
Company.
In his role as Chairman, Howard guided the Group through
difficult circumstances, including a severe recession and a major
restructuring process, and his continued involvement and advice
have proved invaluable to us all. Accordingly, the Board have asked
Howard to remain involved as Life President of the Group, alongside
his other business interests, and he will retain his ambassadorial
role in the North East professional community and beyond. I look
forward to continuing to work with Howard in the coming years.
Our workforce
As always, our loyal, dedicated, and skilled workforce is a key
part of our success and we make every effort to support them
through continued training and health and safety compliance.
Conclusion
I am pleased with the Group's results, given the continued level
of uncertainty which existed for much of the year and the
unprecedented events which subsequently unfolded. I would like to
thank all of our employees for their hard work and their fortitude
in the face of the challenges in recent months.
Our order book is stronger than ever, and, with our solid
financial position, we believe we are very well positioned to
deliver a sustained period of strong operating performance as we
progress towards a more normal level of operating activity. This
is, of course, subject to the wider economic climate in which we
operate and, in particular, no further major impact on our
operations from any resurgence of COVID-19 cases.
Steve Roberts
Executive Chairman
13 July 2020
Consolidated statement of comprehensive income
for the year ended 31 March 2020
2020 2019
GBP000 GBP000
Revenue 54,421 56,575
Cost of sales (43,545) (44,659)
--------- ---------
Gross profit 10,876 11,916
Other operating income 25 24
Administrative expenses (8,682) (8,725)
------------------------------------------------ --------- ---------
Operating profit (before amortisation
and other adjustments) 2,219 3,215
Transaction and other one-off costs (264) -
Deferred consideration adjustments 277 265
Amortisation of intangible assets arising
on acquisitions (155) (152)
------------------------------------------------ --------- ---------
Operating profit 2,077 3,328
Finance costs (229) (197)
--------- ---------
Profit before income tax 1,848 3,131
Income tax expense (360) (540)
--------- ---------
Profit for the year 1,488 2,591
--------- ---------
Total comprehensive income attributable
to equity holders of the parent 1,488 2,591
========= =========
Earnings per share from continuing operations
Basic earnings per share 8.0p 14.0p
Diluted earnings per share 8.0p 13.9p
--------- ---------
Consolidated balance sheet
at 31 March 2020
2020 2019
GBP000 GBP000
Assets
Property, plant and equipment 3,213 3,033
Right of use asset 1,132 -
Intangible assets 20,923 20,476
Trade and other receivables 1,063 1,057
Total non-current assets 26,331 24,566
-------- --------
Inventories 1,007 652
Trade and other receivables 8,218 8,709
Cash and cash equivalents 3,658 3,038
-------- --------
Total current assets 12,883 12,399
-------- --------
Total assets 39,214 36,965
======== ========
Equity
Share capital 190 189
Capital redemption reserve 6 6
Share premium 5,169 5,169
Merger reserve 9,703 9,605
Retained earnings 9,011 8,277
-------- --------
Total equity attributable to equity holders
of the Company 24,079 23,246
-------- --------
Liabilities
Loans and borrowings 3,500 1,236
Deferred consideration 50 217
Trade and other payables 88 -
Lease liabilities 1,072 -
Deferred tax liabilities 354 295
-------- --------
Total non-current liabilities 5,064 1,748
-------- --------
Loans and borrowings 31 232
Deferred consideration 50 97
Trade and other payables 9,103 11,152
Lease liabilities 549 -
Current tax payable 338 490
-------- --------
Total current liabilities 10,071 11,971
-------- --------
Total liabilities 15,135 13,719
-------- --------
Total equity and liabilities 39,214 36,965
======== ========
Consolidated statement of changes in equity
or the year ended 31 March 2020
Share Capital Share Merger Retained Total
capital redemption premium reserve earnings equity
reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 April 2018 189 6 5,169 9,605 6,409 21,378
Total comprehensive income
for the year
Profit for the year - - - - 2,591 2,591
Transactions with owners,
recorded directly in equity
Exercise of share options - - - - 17 17
Equity dividends paid - - - - (740) (740)
At 31 March 2019 189 6 5,169 9,605 8,277 23,246
======== =========== ======== ======== ========= ========
At 1 April 2019 189 6 5,169 9,605 8,277 23,246
Effect of adoption of IFRS
16 - - - - (18) (18)
-------- ----------- -------- -------- --------- --------
At 1 April 2019 (adjusted) 189 6 5,169 9,605 8,259 23,228
Total comprehensive income
for the year
Profit for the year - - - - 1,488 1,488
Transactions with owners,
recorded directly in equity
Issue of shares 1 - - - - 1
Exercise of share options - - - - 5 5
Equity dividends paid - - - - (741) (741)
Merger reserve arising on
acquisition - - - 98 - 98
At 31 March 2020 190 6 5,169 9,703 9,011 24,079
======== =========== ======== ======== ========= ========
Consolidated statement of cash flows
for the year ended 31 March 2020
2020 2019
GBP000 GBP000
Cash flows from operating activities
Operating profit for the year 2,077 3,328
Adjustments for:
Depreciation of property, plant and equipment 570 538
Depreciation of lease asset 367 -
Amortisation 155 152
Loss on sale of property, plant and equipment 1 17
Deferred consideration adjustments (277) (265)
------- -------
2,893 3,770
Change in inventories (275) 163
Change in trade and other receivables 1,039 332
Change in trade and other payables (2,215) 819
------- -------
Cash generated from operations 1,442 5,084
Interest paid (202) (127)
Tax paid (485) (669)
------- -------
Net cash flow from operating activities 755 4,288
------- -------
Cash flows from investing activities
Proceeds from sale of property, plant
and equipment 671 518
Acquisition of property, plant and equipment (1,156) (581)
Acquisition of subsidiary (net of cash
acquired) (876) (426)
-------
Net cash from investing activities (1,361) (489)
------- -------
Cash flows from financing activities
Issue/(repayment) of borrowings 2,513 (1,498)
Repayment of finance lease liabilities - (271)
Repayment of lease liabilities (551) -
Proceeds from the exercise of share options 5 17
Equity dividends paid (741) (740)
------- -------
Net cash from financing activities 1,226 (2,492)
------- -------
Net increase in cash and cash equivalents 620 1,307
Cash and cash equivalents at start of
year 3,038 1,731
------- -------
Cash and cash equivalents at end of year 3,658 3,038
======= =======
Notes
1 Basis of preparation
This announcement has been prepared in accordance with the
Company's accounting policies, which in turn are in accordance with
International Financial Reporting Standards ("IFRS") as adopted by
the European Union ("EU") applied in accordance with the provisions
of the Companies Act 2006. IFRS is subject to amendment and
interpretation by the International Accounting Standards Board
("IASB") and the IFRS Interpretations Committee and there is an
on-going process of review and endorsement by the European
Commission. The accounting policies comply with each IFRS that is
mandatory for the financial year ended 31 March 2020.
The following standards, amendments and interpretations, which
became effective for the first time, were adopted by the Group for
the financial year ended 31 March 2020:
IFRS 16 'Leases'
The Group has adopted IFRS 16 'Leases' from 1 April 2019. IFRS
16 requires lessees to record all leases on the balance sheet by
recognising right of use assets relating to leased assets, and
lease liabilities representing future lease payment obligations.
The Group's leases previously recognised as operating leases under
IAS 17 'Leases' included land and buildings and motor vehicles.
Right of use assets and lease liabilities in relation to these
leases have both been presented separately on the face of the
Consolidated Balance Sheet in these financial statements.
The Group has adopted IFRS 16 using the modified retrospective
approach under which the cumulative effect of initial application
is recognised as an opening reserves adjustment of GBP18,000 at 1
April 2019. The Group's comparative information for prior years has
not been restated under this approach.
Under IFRS 16 the Group now recognises a right of use asset and
a lease liability at the lease commencement date.
The lease liability is measured initially at the present value
of future lease payments from the commencement date, discounted
using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Group's incremental borrowing
rate under its current bank facilities, with appropriate
adjustments if required for residual value guarantees, the exercise
price of purchase options, and termination penalties. The Group has
predominantly used the incremental borrowing rate as the discount
rate for this purpose. On adoption of IFRS 16 the weighted average
incremental borrowing rate applied to lease liabilities recognised
under IFRS 16 was 3.9%.
The right of use asset is measured based on the initial lease
liability with adjustments as required for initial direct costs,
the costs of removal and restoring, payments made at or prior to
commencement, and lease incentives received.
Following initial adoption of IFRS 16 the Group recognised
GBP902,000 of right of use assets and GBP920,000 of lease
liabilities, both in relation to leases formerly classed as
operating leases under IAS 17, on the Consolidated Balance Sheet at
1 April 2019. The Group recognised GBP367,000 depreciation of right
of use assets and GBP59,000 of interest payments in finance costs
in the Consolidated Statement of Comprehensive Income during the
year.
The following standards, amendments and interpretations, which
became effective for the first time, were also adopted by the
Group:
-- IFRS 9 Financial Instruments (Amendment): Prepayment Features
with Negative Compensation - effective date on or after 1 January
2019;
-- IFRIC 23 Uncertainty over Income Tax Treatments - effective
date on or after 1 January 2019;
-- IAS 19 Employee Benefits (Amendment): Plan Amendment,
Curtailment or Settlement - effective date on or after 1 January
2019; and
-- Annual Improvements to IFRSs (2015 - 2017 Cycle) - effective
date on or after 1 January 2019.
The adoption of the above standards and interpretations has not
had a significant impact on the Group's results for the year or
equity.
For the purposes of their assessment of the appropriateness of
the preparation of the Group's accounts on a going concern basis,
the directors have considered the current cash position and
forecasts of future trading including working capital and
investment requirements. This includes consideration of the impact
of COVID-19 on the Group's results and the building services
industry via a detailed forecasting and scenario planning exercise.
The Group's forecasts and projections, taking account of reasonable
possible changes in trading performance, show that the Group and
the Company should have sufficient cash resources to meet its
requirements for at least the next 12 months. Accordingly, the
adoption of the going concern basis in preparing the financial
statements remains appropriate.
2 Status of financial information
The financial information set out above does not constitute the
Company's financial statements for the years ended 31 March 2020 or
31 March 2019.
The financial information for the year ended 31 March 2019 is
derived from the financial statements for that year, which have
been delivered to the Registrar of Companies. The auditor has
reported on the 2019 financial statements; their report was i)
unqualified, ii) did not include references to any matters to which
the auditors drew attention by way of emphasis, without qualifying
their report, and iii) did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
The financial statements for 2020 will be finalised on the basis
of the financial information presented by the Directors in this
preliminary announcement and will be delivered to the Registrar of
Companies following the Company's Annual General Meeting. The
results are unaudited; however, we do not expect there to be any
difference between the numbers presented and those within the
annual report.
3 Earnings per share
Basic earnings per share is the profit or loss for the year
divided by the weighted average number of ordinary shares
outstanding, excluding those in treasury, calculated as
follows:
2020 2019
Profit for the year (GBP000) 1,488 2,591
Weighted average number of ordinary shares
excluding shares held in treasury for the proportion
of the year held in treasury ('000) 18,548 18,515
-------- --------
Basic earnings per share 8.0p 14.0p
The calculation of diluted earnings per share is the profit or
loss for the year divided by the weighted average number of
ordinary shares outstanding, after adjustment for the effects of
all potential dilutive ordinary shares, excluding those in
treasury, calculated as follows:
2020 2019
Profit for the year (GBP000) 1,488 2,591
-------- --------
Weighted average number of ordinary shares
excluding shares held in treasury for the proportion
of the year held in treasury ('000) 18,548 18,515
Effect of potential dilutive ordinary shares
('000) 57 63
-------- --------
Diluted weighted average number of ordinary
shares excluding shares held in treasury for
the proportion of the year held in treasury
('000) 18,605 18,578
-------- --------
Diluted earnings per share 8.0p 13.9p
-------- --------
The following additional earnings per share figures are
presented as the directors believe they provide a better
understanding of the trading performance of the Group.
Adjusted basic and diluted earnings per share is the profit for
the year, adjusted for acquisition related items and transaction
and other one-off costs, divided by the weighted average number of
ordinary shares outstanding as presented above.
Adjusted earnings per share is calculated as follows:
2020 2019
Profit for the year (GBP000) 1,488 2,591
Transaction and other one-off costs 264 -
Deferred consideration adjustments (277) (265)
Amortisation of intangible assets arising on
acquisitions 155 152
Unwinding of discount on deferred consideration
liabilities 28 70
Corporation tax effect of above items (50) (43)
-------- --------
Adjusted profit for the year (GBP000) 1,608 2,505
Weighted average number of ordinary shares
excluding shares held in treasury for the proportion
of the year held in treasury ('000) 18,548 18,515
-------- --------
Adjusted basic earnings per share 8.7p 13.5p
Adjusted diluted earnings per share 8.6p 13.5p
-------- --------
4 Finance costs
2020 2019
GBP'000 GBP'000
On bank loans and overdrafts 114 106
Finance charges on lease liabilities 87 21
Unwinding of discount on deferred consideration
liabilities 28 70
-------- --------
229 197
-------- --------
5 Loans and borrowings
2020 2019
GBP'000 GBP'000
Non-current liabilities
Secured bank loans 3,500 1,000
Finance lease liabilities - 236
-------- --------
3,500 1,236
-------- --------
Current liabilities
Current portion of finance lease liabilities - 214
Other loans 31 18
-------- --------
31 232
-------- --------
The Group retains a GBP3.5 million revolving credit facility and
a GBP1.0 million overdraft facility, both with Yorkshire Bank, for
working capital purposes.
As at 31 March 2020 a total of GBP3.5 million (2019: GBP1.0
million) was drawn down on this facility, which is committed until
31 May 2023, providing a net cash figure at 31 March 2020 of GBP0.2
million (2019: GBP2.0 million net cash) after offsetting cash and
cash equivalents of GBP3.7 million (2019: GBP3.0 million).
The revolving credit facility was renewed on 19 March 2020 and
is committed until 31 May 2023. The overdraft facility was renewed
on 19 March 2020 and is next due for routine review and renewal on
28 February 2021.
Following the adoption of IFRS 16 'Leases', any liabilities
related to leases previously classified as finance leases have been
included with lease liabilities as disclosed separately in the
Consolidated Balance Sheet.
6 Availability of financial statements
The Group's Annual Report and Financial Statements for the year
ended 31 March 2020 are expected to be approved by 20 July 2020 and
will be posted to shareholders during the week commencing 20 July
2020. Further copies will be available to download on the Company's
website at: http://www.northernbearplc.com/ . It is intended that
the Annual General Meeting will take place at the Company's
registered office, A1 Grainger, Prestwick Park, Prestwick,
Newcastle upon Tyne, NE20 9SJ, at 10:00am on 18 August 2020.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR EAEXAFLKEEFA
(END) Dow Jones Newswires
July 13, 2020 02:00 ET (06:00 GMT)
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