TIDMOPD
RNS Number : 6649K
OPD Group PLC
23 April 2010
PRELIMINARY ANNOUNCEMENT
23 April 2010
OPD Group plc, the international recruitment services group, announces its
preliminary results for the year to 31 December 2009
For further information contact
Francesca Robinson, Chief Executive Officer Tel: 0207 970
9661
Ian Moss, Finance Director Tel:
0207 970 9668
OPD Group plc
Gary Clarence
Investec
Tel: 0207 597 5197
Chairman's Statement
In December 2009 the Group announced that it intended to sell 50.5% of its
interest in International Resources Group ('Odgers') to a company controlled by
the management of Odgers. Odgers, for the purpose of the sale was valued at
GBP16 million and in addition a pre-completion dividend of GBP2 million was paid
to the Group. This disposal completed on 8 January 2010 and within these results
Odgers has been classified as a discontinuing operation.
Excluding the results of Odgers, the operating profits before non-recurring
items decreased to GBP403,000 from GBP3.5 million in 2008. Odgers generated a
profit after tax of GBP1.3 million (2008: GBP4.7 million) and before an
impairment charge of GBP16.8 million was incurred in respect of goodwill arising
from its acquisition.
The Group incurred a loss after tax of GBP17.6 million (2008: loss GBP2.3
million) and the basic loss per share was 66.5 pence (2008: loss 8.9 pence).
Net fee income from the Odgers business decreased by 18% to GBP44.6 million from
GBP54.3 million in 2008. The Group's other businesses also experienced a decline
in income with PSD's net fee income falling by 39% from GBP29.3 million to
GBP18.0 million and Hoggett Bowers by 37% from GBP7.3 million to GBP4.6 million.
Net Fee Income ('NFI')
Our net fee income by brand is set out below:
+----------------+---------------------+---------------------+
| | Year to 31 December | Year to 31 December |
| | 2009 | 2008 |
| | GBP'm | GBP'm |
+----------------+---------------------+---------------------+
| | | |
+----------------+---------------------+---------------------+
| Odgers | 44.6 | 54.3 |
+----------------+---------------------+---------------------+
| PSD (including | | |
| Portfolio) | 18.0 | 29.3 |
+----------------+---------------------+---------------------+
| Hoggett Bowers | 4.6 | 7.3 |
+----------------+---------------------+---------------------+
| | | |
+----------------+---------------------+---------------------+
| Total | 67.2 | 90.9 |
+----------------+---------------------+---------------------+
The cost base of both the continuing group and Odgers were reduced during 2009
and both businesses are currently trading profitably.
The Board is not proposing to pay a final dividend for 2009 (2008: Nil pence)
and no interim dividend was paid for 2009 (October 2008: 3 pence). It is
unlikely that any dividend will be paid in respect of 2010.
The OPD Board is currently discussing with the senior management of PSD and
Hoggett Bowers the possibility of the management team acquiring a significant
holding in these businesses. A further announcement will be made once these
discussions have been concluded.
On 17 December 2009 the Board made an announcement in respect of the company's
non-compliance with the requirement of Listing Rule 9.2.15 that at least 25 per
cent. of a listed company's share capital must be held in public hands. The
Company remains in breach of this requirement as currently approximately 68 per
cent of the company's share capital is held by Offerco and its related party and
25 per cent. by funds controlled by Schroders. The Board has held discussion
with relevant parties to seek a resolution to the breach of Rule 9.2.15 but
these are so far inconclusive.
Peter Hearn
Chairman
Consolidated statement of comprehensive income for the year ended 31 December
2009
+------------------------------------------+-------+----------------+--+--------------+
| | | 2009 | | 2008 |
| |Notes | GBP'000 | | GBP'000 |
+------------------------------------------+-------+----------------+--+--------------+
| Continuing Operations: | | | | |
| | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Revenue ("Gross fee income") | 2 | 49,409 | | 69,672 |
+------------------------------------------+-------+----------------+--+--------------+
| Cost of Sales | | (26,764) | | (33,050) |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Gross Profit ("Net fee Income") | | 22,645 | | 36,622 |
| | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Administrative expenses | | (24,562) | | (34,183) |
+------------------------------------------+-------+----------------+--+--------------+
| Other income | | - | | 315 |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
| Operating (loss)/ profit | | (1,917) | | 2,754 |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
| Analysed as: | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Operating profit before exceptional | | | | |
| items and | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| losses from closed businesses | | 403 | | 3,532 |
+------------------------------------------+-------+----------------+--+--------------+
| Costs and charges arising from: | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| -unsuccessful bid for Imprint plc | | - | | (645) |
+------------------------------------------+-------+----------------+--+--------------+
| -bid from Offerco Limited | 3 | (545) | | - |
+------------------------------------------+-------+----------------+--+--------------+
| -redundancies | 3 | (177) | | - |
+------------------------------------------+-------+----------------+--+--------------+
| Losses from closed businesses | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| -trading losses | 3 | (823) | | (448) |
+------------------------------------------+-------+----------------+--+--------------+
| -closure costs | 3 | (775) | | - |
+------------------------------------------+-------+----------------+--+--------------+
| Profit on sale of shares in Imprint plc | | - | | 315 |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Operating (loss)/ profit | | (1,917) | | 2,754 |
| | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Finance income | | 6 | | 149 |
+------------------------------------------+-------+----------------+--+--------------+
| Finance costs | | (85) | | (876) |
+------------------------------------------+-------+----------------+--+--------------+
| Finance costs - net | | (79) | | (727) |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| (Loss)/ profit before income tax | | (1,996) | | 2,027 |
+------------------------------------------+-------+----------------+--+--------------+
| Income tax expense | 4 | (36) | | (1,531) |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
| (Loss)/ profit for the year from | | (2,032) | | 496 |
| continuing operations | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Discontinued operations | | (15,522) | | (2,833) |
+------------------------------------------+-------+----------------+--+--------------+
| (Loss) for the year | | (17,554) | | (2,337) |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Other comprehensive income: | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Currency translation differences | | 48 | | 57 |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
| Total comprehensive loss for the year | | (17,506) | | (2,280) |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| (Loss) attributable to equity | | (17,554) | | (2,337) |
| shareholders of the company | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| Total comprehensive (loss) attributable | | | | |
| to equity shareholders of the company | | (17,506) | | (2,280) |
+------------------------------------------+-------+----------------+--+--------------+
| Basic (loss)/ earnings per share (p) | | | | |
+------------------------------------------+-------+----------------+--+--------------+
| From continuing operations | 5 | (7.7) | | 1.9 |
+------------------------------------------+-------+----------------+--+--------------+
| From discontinued operations | 5 | (58.8) | | (10.8) |
+------------------------------------------+-------+----------------+--+--------------+
| | | | | |
| | | (66.5) | | (8.9) |
+------------------------------------------+-------+----------------+--+--------------+
Consolidated statement of changes in equity for the year ended 31 December 2009
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| | | Share | Capital | Own | Foreign | Retained | Total |
| | Called | premium | redemption | shares | currency | earnings | equity |
| | up | GBP'000 | reserve | GBP'000 | translation | GBP'000 | GBP'000 |
| | share | | GBP'000 | | GBP'000 | | |
| | capital | | | | | | |
| | GBP'000 | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| | 1,328 | 18,409 | 50 | (680) | 11 | 28,311 | 47,429 |
| At 1 January | | | | | | | |
| 2008 | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Currency | - | - | - | - | 57 | - | 57 |
| translation | | | | | | | |
| differences | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| (Loss) for the | - | - | - | - | - | (2,337) | (2,337) |
| year | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Comprehensive | | | | | 57 | (2,337) | (2,280) |
| (loss) for the | | | | | | | |
| year | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Own shares | - | - | - | (120) | - | - | (120) |
| acquired | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Exercise of | - | - | - | 30 | - | (30) | - |
| share options | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Credit for | - | - | - | - | - | 371 | 371 |
| share based | | | | | | | |
| incentive | | | | | | | |
| schemes | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| IFRS2 Deferred | - | - | - | - | - | (255) | (255) |
| tax charge to | | | | | | | |
| equity | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Equity | - | - | - | - | - | (2,375) | (2,375) |
| dividends | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| | 1,328 | 18,409 | 50 | (770) | 68 | 23,685 | 42,770 |
| At 31 December | | | | | | | |
| 2008 | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Currency | - | - | - | - | 48 | - | 48 |
| translation | | | | | | | |
| differences | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| (Loss) for the | - | - | - | - | - | (17,554) | (17,554) |
| year | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Comprehensive | - | - | - | - | 48 | (17,554) | (17,506) |
| (loss) for the | | | | | | | |
| year | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Own shares sold | - | - | - | 770 | - | (589) | 181 |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Exercise of | 6 | 66 | - | - | - | (72) | - |
| share options | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| Credit for | - | - | - | - | - | 369 | 369 |
| share based | | | | | | | |
| incentive | | | | | | | |
| schemes | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| IFRS2 deferred | - | - | - | - | - | (117) | (117) |
| tax charge to | | | | | | | |
| equity | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
| | 1,334 | 18,475 | 50 | - | 116 | 5,722 | 25,697 |
| At 31 December | | | | | | | |
| 2009 | | | | | | | |
+-----------------+---------+---------+------------+---------+-------------+----------+----------+
Balance sheet as at 31 December 2009
+--------------------------------+------+---------+---------+
| | | Group | |
| | | 2009 | 2008 |
| | | GBP'000 | GBP'000 |
+--------------------------------+------+---------+---------+
| Assets | | | |
+--------------------------------+------+---------+---------+
| Non-current assets | | | |
+--------------------------------+------+---------+---------+
| Property, plant and equipment | | 750 | 3,199 |
+--------------------------------+------+---------+---------+
| Intangible assets | | 1,509 | 30,765 |
+--------------------------------+------+---------+---------+
| Investments in subsidiaries | | - | - |
+--------------------------------+------+---------+---------+
| Deferred income tax assets | | 457 | 406 |
+--------------------------------+------+---------+---------+
| | | | |
| Total non-current assets | | 2,716 | 34,370 |
+--------------------------------+------+---------+---------+
| | | | |
| Current assets | | | |
+--------------------------------+------+---------+---------+
| Trade and other receivables | | 10,858 | 28,537 |
+--------------------------------+------+---------+---------+
| Cash and cash equivalents | | 2,423 | 10,823 |
+--------------------------------+------+---------+---------+
| | | | |
| Total current assets | | 13,281 | 39,360 |
+--------------------------------+------+---------+---------+
| Assets of disposed group | | | |
| classified as held for sale | | 28,774 | - |
+--------------------------------+------+---------+---------+
| | | | |
| Total assets | | 44,771 | 73,730 |
+--------------------------------+------+---------+---------+
| | | | |
| Liabilities and equity | | | |
+--------------------------------+------+---------+---------+
| Non-current liabilities | | | |
+--------------------------------+------+---------+---------+
| Provisions for liabilities and | | 716 | 504 |
| charges | | | |
+--------------------------------+------+---------+---------+
| | | | |
| Total non-current liabilities | | 716 | 504 |
+--------------------------------+------+---------+---------+
| | | | |
| Current liabilities | | | |
+--------------------------------+------+---------+---------+
| Current income tax liabilities | | 706 | 2,685 |
+--------------------------------+------+---------+---------+
| Borrowings | | 1,062 | 850 |
+--------------------------------+------+---------+---------+
| Trade and other payables | | 3,816 | 21,486 |
+--------------------------------+------+---------+---------+
| Contingent consideration for | | - | 5,435 |
| acquisition | | | |
+--------------------------------+------+---------+---------+
| | | | |
| Total current liabilities | | 5,584 | 30,456 |
+--------------------------------+------+---------+---------+
| Liabilities of disposed group | | | |
| classified as held for sale | | 12,774 | - |
+--------------------------------+------+---------+---------+
| | | | |
| Total liabilities | | 19,074 | 30,960 |
+--------------------------------+------+---------+---------+
+--------------------------------+------+--------+--------+
| | | | |
+--------------------------------+------+--------+--------+
| Equity attributable to owners | | | |
| of the parent | | | |
+--------------------------------+------+--------+--------+
| Called up share capital | | 1,334 | 1,328 |
+--------------------------------+------+--------+--------+
| Share premium account | | 18,475 | 18,409 |
+--------------------------------+------+--------+--------+
| Capital redemption reserve | | 50 | 50 |
+--------------------------------+------+--------+--------+
| Merger reserve | | - | - |
+--------------------------------+------+--------+--------+
| Own shares | | - | (770) |
+--------------------------------+------+--------+--------+
| Foreign currency translation | | 116 | 68 |
+--------------------------------+------+--------+--------+
| Retained earnings | | 5,722 | 23,685 |
+--------------------------------+------+--------+--------+
| | | | |
+--------------------------------+------+--------+--------+
| Total equity | | 25,697 | 42,770 |
+--------------------------------+------+--------+--------+
| Total equity and liabilities | | 44,771 | 73,730 |
+--------------------------------+------+--------+--------+
Cash flow statement for the year ended 31 December 2009
+----------------------------------+------+---------+---------+
| | | Group | |
| | | 2009 | 2008 |
| |Note | GBP'000 | GBP'000 |
+----------------------------------+------+---------+---------+
| | | | |
| Cash flows from operating | | | |
| activities | | | |
+----------------------------------+------+---------+---------+
| Continuing activities: | | | |
+----------------------------------+------+---------+---------+
| Cash generated by operations | 7 | 214 | 5,722 |
+----------------------------------+------+---------+---------+
| Interest paid | | (27) | (276) |
+----------------------------------+------+---------+---------+
| Income tax paid | | (842) | (2,004) |
+----------------------------------+------+---------+---------+
| Cash flows from discontinued | | | |
| operating activities | | 4 | 6,847 |
+----------------------------------+------+---------+---------+
| | | | |
| Net cash (absorbed by)/ | | | |
| generated from operating | | (651) | 10,289 |
| activities | | | |
+----------------------------------+------+---------+---------+
| | | | |
| Cash flows from investing | | | |
| activities | | | |
+----------------------------------+------+---------+---------+
| Continuing activities: | | | |
+----------------------------------+------+---------+---------+
| Acquisition of subsidiary | | (4,929) | (8,670) |
+----------------------------------+------+---------+---------+
| Investment in subsidiary | | - | - |
+----------------------------------+------+---------+---------+
| Purchase of property, plant and | | (36) | (302) |
| equipment | | | |
+----------------------------------+------+---------+---------+
| Purchase of intangible assets | | (28) | (109) |
+----------------------------------+------+---------+---------+
| Proceeds on disposal of | | | |
| property, plant and equipment | | 26 | 6 |
+----------------------------------+------+---------+---------+
| Costs arising from unsuccessful | | | |
| bid for Imprint plc | | - | (1,674) |
+----------------------------------+------+---------+---------+
| Sale of available-for financial | | - | 2,300 |
| assets | | | |
+----------------------------------+------+---------+---------+
| Interest received | | 6 | 149 |
+----------------------------------+------+---------+---------+
| Cash flows from discontinued | | | |
| investing activities | | (797) | (1,096) |
+----------------------------------+------+---------+---------+
| Cash flows from investing | | (5,758) | (9,396) |
| activities - net | | | |
+----------------------------------+------+---------+---------+
| | | | |
| Cash flows from financing | | | |
| activities | | | |
+----------------------------------+------+---------+---------+
| Continuing activities: | | | |
+----------------------------------+------+---------+---------+
| Dividends paid | | - | (2,375) |
+----------------------------------+------+---------+---------+
| Sale/ (purchase) of own shares | | 108 | (120) |
+----------------------------------+------+---------+---------+
| Cash flows discontinued | | - | - |
| financing activities | | | |
+----------------------------------+------+---------+---------+
| Cash flows from financing | | 108 | (2,495) |
| activities - net | | | |
+----------------------------------+------+---------+---------+
| | | | |
| Net (decrease)/ increase in cash | | | |
| and cash equivalents | | (6,301) | (1,602) |
+----------------------------------+------+---------+---------+
| Cash and cash equivalents at 1 | | 9,973 | 11,645 |
| January | | | |
+----------------------------------+------+---------+---------+
| Exchange gains/(losses) on cash | | | |
| and cash equivalents | | 70 | (70) |
+----------------------------------+------+---------+---------+
| | | | |
+----------------------------------+------+---------+---------+
| Cash and cash equivalents at 31 | | 3,742 | 9,973 |
| December | | | |
+----------------------------------+------+---------+---------+
| | | | |
+----------------------------------+------+---------+---------+
| Included in: cash and cash | | 2,423 | 10,823 |
| equivalents | | | |
+----------------------------------+------+---------+---------+
| Borrowings | | (1,062) | (850) |
+----------------------------------+------+---------+---------+
| Included in the assets of the | | 2,381 | - |
| disposal group | | | |
+----------------------------------+------+---------+---------+
| Cash and cash equivalents at 31 | | 3,742 | 9,973 |
| December | | | |
+----------------------------------+------+---------+---------+
Notes to the preliminary announcement for the year ended 31 December 2009
1. Basis of preparation
The financial information set out in this preliminary announcement which was
approved by the Board of Directors on 23 April 2009 has been prepared in
accordance with International Financial Reporting Standards adopted for use in
the European Union. Details of the accounting policies applied are set out in
OPD Group's Annual Report 2009.
The information set out in this announcement does not constitute statutory
accounts for the years ended 31 December 2009 or 31 December 2008, within the
meaning of section 434 of the Companies Act 2006. Statutory accounts for the
year ended 31 December 2008 have been delivered to the Registrar of Companies
and the auditors have reported on these accounts and given an unqualified report
which does not contain a statement under section 237(3) of the Companies Act
1985.
2. Segmental analysis
The Board considers that the continuing business comprises two operating
segments, PSD (including Portfolio) and Hoggett Bowers.
+---------------+---------+---------+---------+---------+---------+---------+
| | 2009 | | | 2008 | | |
| | Hoggett | PSD | Total | Hoggett | PSD | Total |
| | Bowers | | | Bowers | | |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | |
+---------------+---------+---------+---------+---------+---------+---------+
| Revenue | 7,895 | 41,514 | 49,409 | 11,972 | 57,700 | 69,672 |
+---------------+---------+---------+---------+---------+---------+---------+
| Gross | 4,630 | 18,015 | 22,645 | 7,300 | 29,322 | 36,622 |
| profit | | | | | | |
+---------------+---------+---------+---------+---------+---------+---------+
| | | | | | | |
| Profit/(loss) | 241 | (1,248) | (1,007) | 1,375 | 2,151 | 3,526 |
+---------------+---------+---------+---------+---------+---------+---------+
Separate balance sheets are not produced for the two segments and accordingly no
disclosure has been made of assets or liabilities.
A reconciliation of the results by segment to total (loss)/ profit before income
tax is provided as follows:
+------------------------+----------+----------------+-----------------+
| | | 2009 | 2008 |
| | | GBP'000 | GBP'000 |
| | | | |
+------------------------+----------+----------------+-----------------+
| (Loss)/profit for | | | |
| reportable segments | | (1,007) | 3,526 |
+------------------------+----------+----------------+-----------------+
| Central costs | | (365) | (442) |
+------------------------+----------+----------------+-----------------+
| Costs associated with | | | |
| bid for Imprint plc | | - | (645) |
+------------------------+----------+----------------+-----------------+
| Profit on sale of | | | |
| Imprint plc shares | | - | 315 |
+------------------------+----------+----------------+-----------------+
| Costs associated with | | | |
| bid from Offerco | | (545) | - |
| Limited | | | |
+------------------------+----------+----------------+-----------------+
| Operating | | | |
| (loss)/profit before | | (1,917) | 2,754 |
| income tax | | | |
+------------------------+----------+----------------+-----------------+
3. Exceptional/ non recurring items
During the year shareholders received an offer to purchase their shares in OPD
Group from Offerco Limited, a company controlled by Mr P Hearn, the chairman of
the Group. The costs incurred by the Group in connection with the bid
(GBP545,000) together with costs arising from redundancies (GBP177,000) have
been treated as exceptional items.
PSD offices in Singapore and Paris were closed in May 2009 and January 2010
respectively. The aggregate trading losses during the year were GBP823,000 and
the closure costs of the office in Singapore amounted to GBP775,000.
4. Taxation
The tax charge arises from continuing operations and is made up as follows:
+-------------------------------------------+---------+---------+
| | 2009 | 2008 |
| | GBP'000 | GBP'000 |
+-------------------------------------------+---------+---------+
| | | |
| Current tax | | |
+-------------------------------------------+---------+---------+
| UK corporation tax | 256 | 1,332 |
+-------------------------------------------+---------+---------+
| Foreign tax | 18 | 188 |
+-------------------------------------------+---------+---------+
| UK tax over-provided in previous years | (20) | (153) |
+-------------------------------------------+---------+---------+
| | | |
+-------------------------------------------+---------+---------+
| Total current tax | 254 | 1,367 |
+-------------------------------------------+---------+---------+
| | | |
+-------------------------------------------+---------+---------+
| Deferred tax | | |
+-------------------------------------------+---------+---------+
| Origination and reversal of temporary | (218) | 164 |
| differences | | |
+-------------------------------------------+---------+---------+
| | | |
+-------------------------------------------+---------+---------+
| Total income tax expense in the income | 36 | 1,531 |
| statement | | |
+-------------------------------------------+---------+---------+
5. Earnings Per Share
Basic earnings per share is calculated by dividing the earnings, attributable to
ordinary shareholders by the weighted average number of ordinary shares in issue
during the year, excluding those held in the employee share trust.
For diluted earnings per share, the weighted average number of shares in issue
is adjusted to assume conversion of all dilutive potential ordinary shares. The
Group had one category of potential ordinary shares: those share options granted
to employees where the exercise price is less than the average price of the
Company's ordinary shares. In July 2009 there was a change of control of the
Company and all outstanding share options were either exercised or lapsed. For
the two years ended 31 December 2009 the Group was loss-making, any shares
options in issue are considered to be "anti-dilutive" and, as such, there is no
separate calculation for diluted earning per share.
+------------------------------------------+----------+----------------------------+
| | 2009 | 2008 |
+------------------------------------------+----------+----------------------------+
| | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------------------------+
| Earnings | | |
+------------------------------------------+----------+----------------------------+
| | (2,032) | 496 |
| (Loss)/ Profit for the year from | | |
| continuing operations | | |
+------------------------------------------+----------+----------------------------+
| Loss from discontinued operations | (15,522) | (2,833) |
+------------------------------------------+----------+----------------------------+
| | (17,554) | (2,337) |
+------------------------------------------+----------+----------------------------+
| | 2009 | 2008 |
| | '000 | '000 |
+------------------------------------------+----------+----------------------------+
| Number of shares | | |
+------------------------------------------+----------+----------------------------+
| Weighted average number of shares | 26,380 | 26,270 |
+------------------------------------------+----------+----------------------------+
| | | |
+------------------------------------------+----------+----------------------------+
| (Loss)/earnings per share (pence): | | |
+------------------------------------------+----------+----------------------------+
| - Continuing operations | (7.7) | 1.9 |
+------------------------------------------+----------+----------------------------+
| - Discontinued operations | (58.8) | (10.8) |
+------------------------------------------+----------+----------------------------+
| | (66.5) | (8.9) |
+------------------------------------------+----------+----------------------------+
6. Dividends
+------------------------------------------+---------+---------+
| | 2009 | 2008 |
| | GBP'000 | GBP'000 |
+------------------------------------------+---------+---------+
| | | |
+------------------------------------------+---------+---------+
| Final dividend for 2008 of Nil p per | - | 1,584 |
| share (2007: 6p) | | |
+------------------------------------------+---------+---------+
| Interim dividend for 2009 of Nil p per | - | 791 |
| share (2008: 3p) | | |
+------------------------------------------+---------+---------+
| | - | 2,375 |
+------------------------------------------+---------+---------+
| | | |
+------------------------------------------+---------+---------+
| Proposed final dividend for 2009 of Nil | - | - |
| p (2008: Nil p) | | |
+------------------------------------------+---------+---------+
7. Reconciliation of (Loss)/ profit before tax to net cash inflow from operating
activities
+---------------------+------------+---------------+------------+---------------+
| | Group | | | |
| | 2009 | 2009 | 2008 | 2008 |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | Continuing | Discontinuing | Continuing | Discontinuing |
| | | | | |
+---------------------+------------+---------------+------------+---------------+
| | | | | |
+---------------------+------------+---------------+------------+---------------+
| (Loss)/ profit | (1,996) | (14,303) | 2,027 | (611) |
| before tax | | | | |
+---------------------+------------+---------------+------------+---------------+
| Adjustments | | | | |
| for: | | | | |
+---------------------+------------+---------------+------------+---------------+
| Depreciation | 483 | 747 | 651 | 946 |
+---------------------+------------+---------------+------------+---------------+
| Amortisation | 85 | 97 | 82 | 72 |
+---------------------+------------+---------------+------------+---------------+
| Change in | 212 | - | 119 | - |
| provision | | | | |
+---------------------+------------+---------------+------------+---------------+
| Impairment of | | | | |
| goodwill/investment | - | 16,780 | - | 7,573 |
+---------------------+------------+---------------+------------+---------------+
| Loss/ (profit) | | | | |
| on disposal of | | | | |
| plant and | 62 | - | (6) | - |
| equipment | | | | |
+---------------------+------------+---------------+------------+---------------+
| Profit on | - | - | (315) | - |
| disposal of | | | | |
| investments | | | | |
+---------------------+------------+---------------+------------+---------------+
| Share option | 369 | - | 371 | - |
| charge | | | | |
+---------------------+------------+---------------+------------+---------------+
| Net finance | 79 | (35) | 727 | (155) |
| costs | | | | |
+---------------------+------------+---------------+------------+---------------+
| | | | | |
+---------------------+------------+---------------+------------+---------------+
| Changes in | | | | |
| working | | | | |
| capital: | | | | |
+---------------------+------------+---------------+------------+---------------+
| Decrease in | | | | |
| trade and other | 1,902 | 3,312 | 3,970 | 4,147 |
| receivables | | | | |
| | | | | |
+---------------------+------------+---------------+------------+---------------+
| (Decrease) in | | | | |
| trade and other | (982) | (4,593) | (1,904) | (2,598) |
| payables | | | | |
+---------------------+------------+---------------+------------+---------------+
| | | | | |
+---------------------+------------+---------------+------------+---------------+
| Cash flows from | | | | |
| operating | 214 | 2,005 | 5,722 | 9,374 |
| activities | | | | |
+---------------------+------------+---------------+------------+---------------+
8. Event after the reporting period, assets of disposal group classified as
held-for-sale and
discontinued operations
On 8 January 2010 50.5% of International Resources Group ('Odgers') was sold to
Broomco Limited, a company controlled by Mr Boggis-Rolfe, Baroness Bottomley and
certain other employees of Odgers.
In consideration OPD received GBP5.1 million in cash and loan notes for GBP6
million from Broomco Limited. Interest accrues on the loan note at a rate of 8
percent per annum over Barclays Base Rate and is paid quarterly in arrears. The
principal amount of the loan notes, being GBP6 million is repayable in equal
quarterly instalments between January 2011 and December 2014. The loan notes
are capable of early repayment at any time and on 27 January 2010 GBP3 million
was repaid.
Prior to completion Odgers paid an interim dividend of GBP2 million in respect
of the year ending 31 December 2010. On the date of disposal Odgers ceased to
be controlled by the Group and is no longer a subsidiary.
The assets and liabilities related to Odgers have been presented as held for
sale at 31 December 2009.
a) Assets of disposal group classified as held for sale
+-------------+---------+
| | 2009 |
| | |
+-------------+---------+
| | GBP'000 |
+-------------+---------+
| Property, | 1,308 |
| plant and | |
| equipment | |
+-------------+---------+
| Intangible | 12,427 |
| assets | |
+-------------+---------+
| Trade | 12,538 |
| and | |
| other | |
| receivables | |
+-------------+---------+
| Other | 2,501 |
| current | |
| assets | |
+-------------+---------+
| | 28,774 |
+-------------+---------+
b) Liabilities of disposal group classified as held for sale
+-------------+---------+
| | 2009 |
| | |
+-------------+---------+
| | GBP'000 |
+-------------+---------+
| Trade | 12,095 |
| and | |
| other | |
| payables | |
+-------------+---------+
| Other | 679 |
| current | |
| liabilities | |
+-------------+---------+
| | 12,774 |
+-------------+---------+
c) Result for 2009 / 2008
+----------------+----------+----------+
| | 2009 | 2008 |
| | GBP'000 | GBP'000 |
+----------------+----------+----------+
| | | |
+----------------+----------+----------+
| Revenue | 63,386 | 76,135 |
+----------------+----------+----------+
| Cost | (18,832) | (21,847) |
| of | | |
| Sales | | |
+----------------+----------+----------+
| Gross | 44,554 | 54,288 |
| Profit | | |
+----------------+----------+----------+
| Administrative | (42,077) | (47,326) |
| expenses | | |
+----------------+----------+----------+
| Profit | 2,477 | 6,962 |
| before | | |
| tax of | | |
| discontinued | | |
| operations | | |
+----------------+----------+----------+
| Pre | | |
| tax | (16,780) | (7,573) |
| loss | | |
| recognised | | |
| on the | | |
| re-measurement | | |
| of assets of | | |
| disposal group | | |
+----------------+----------+----------+
| Tax | (1,219) | (2,222) |
+----------------+----------+----------+
| (Loss) | (15,522) | (2,833) |
| for | | |
| the | | |
| year | | |
| from | | |
| discontinued | | |
| operations | | |
+----------------+----------+----------+
d) Impairment on disposal
+------------+---------+
| | GBP' |
| | Million |
+------------+---------+
| | |
+------------+---------+
| Value | 16.0 |
| at | |
| date | |
| of | |
| disposal | |
+------------+---------+
| Carrying | 29.0 |
| value of | |
| goodwill | |
+------------+---------+
| Net | 3.8 |
| assets | |
| at | |
| 31.12.09 | |
+------------+---------+
| | 32.8 |
+------------+---------+
| | |
+------------+---------+
| Impairment | 16.8 |
+------------+---------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR KKBDNOBKDCQB
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