TIDMTPG
RNS Number : 6329L
TP Group PLC
14 September 2021
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
14 September 2021
TP Group plc
("TP Group" or the "Company" or the "Group")
Unaudited interim results for the six months ended 30 June
2021
TP Group (AIM: TPG) today announces its unaudited interim
results for the six months ended 30 June 2021.
TP Group overall delivered a much improved performance in a
difficult market and is well positioned to deliver good growth that
will increase shareholder value. UK Consulting grew revenues and
margins. Our recent acquisition of Osprey Consulting Ltd ("Osprey")
delivered an excellent performance despite COVID-19 ("C-19")
shutting down a large part of the aviation market. TPG Maritime's
profits increased. Central costs were historically too high and
have since been reduced by GBP1m per annum, the benefit of which
will fall straight to the bottom line. Looking forward we are
confident of good growth within the UK Consulting market and across
Europe.
H1 Performance Summary
-- Revenue up 23% to GBP33.8m (H1 2020: GBP27.5m)
-- Adjusted operating profit(1) up 23% to GBP1.7m (H1 2020: GBP1.4m)
-- Operating loss increased to GBP1.9m (H1 2020: GBP1.7m loss)
due to the GBP0.5m termination cost of the former CEO
-- Closing order book GBP60.9m (31 December 2020: GBP69.3m) -
provides strong H2 2021 revenue visibility with more than 90% of
full year market forecast revenues covered
-- Net debt of GBP3.5m (31 December 2020 net cash: GBP0.4m) -
cash performance is tracking in line with expectations and is well
within banking covenants
David Lindsay, Chief Executive Officer of TP Group,
commented:
"TP Group will significantly increase shareholder value by
focussing on Aerospace & Defence clients that place great trust
in our excellent people, expert technical knowledge and secure
processes & systems.
"TP Group has successfully grown its UK Consulting business
despite the C-19 pandemic and aims to replicate this success across
Europe using Sapienza as an important stepping stone.
"I have already streamlined our management structure and reduced
our central costs by GBP1m per annum that will directly benefit the
bottom line in 2022. We will also improve profitability by
increasing knowledge transfer, resource sharing and use of common
systems across our businesses.
"I am very optimistic about TP Group's future because we have
great people and operate in good markets where important clients
value our services highly."
(1.) (Adjusted operating profit is defined as operating result
adjusted to add back depreciation of property, plant and equipment
and right-of-use assets, amortisation of intangible assets and
impairment gains or losses on non-current assets, changes in fair
value of contingent consideration, acquisition consideration
accounted for as employment costs owing to on-going service
conditions, any other acquisition-related and disposal-related
charges, share based payment charges, and non-operating costs.
Non-operating costs are those items believed to be exceptional in
nature by virtue of their size and or incidence. The directors of
the Company believe this measure is more reflective of the
underlying performance of the Group than equivalent GAAP measures.
This is primarily due to the exclusion of non-cash items, such as
share-based payments, impairment, depreciation and amortisation, as
well as acquisition and non-operating costs. This provides
shareholders and other users of the financial statements with the
most representative year-on-year comparison of underlying operating
performance attributable to shareholders. This measure and the
separate components remain consistent with 2020.)
For further information, please contact:
TP Group plc Tel: 01753 285 810
David Lindsay, Chief Executive Officer
Derren Stroud, Chief Financial Officer
www.tpgroupglobal.com
Cenkos Securities plc Tel: 020 7397 8980
Stephen Keys / Mark Connelly / Callum
Davidson
www.cenkos.com
SEC Newgate UK Tel: 020 3757 6882
Elisabeth Cowell/ Bob Huxford/ Richard
Bicknell
www.secnewgate.co.uk
Business Review
Introduction
TP Group overall delivered a much improved result with revenue
and adjusted operating profit both up by 23% despite the difficult
market that was severely impacted by the C-19 pandemic.
Consulting:
-- The Osprey acquisition in August 2020 has strengthened
Consulting, adding both specialist safety assurance capability and
aviation market access. Osprey's performance improved thanks to its
entry into the space, drone and digital technology markets and
despite the devastating impact of C-19 on the civil aviation
sector.
-- Our established UK Consulting business saw strong organic growth in its core defence markets.
-- In Europe, Sapienza also delivered good organic growth in
consultancy from existing customers, with both revenues and profits
up.
Engineering:
-- TPG Maritime's profits increased despite delays in new
contract awards and cost overruns in European contracts that are
now addressed, and we are confident that the business has a good
future.
-- Westek disappointed due to product design difficulties and
delayed order intake. We are currently reviewing how best to
realise value from this business.
Northstar/Optimiser, our artificial intelligence software suite
continues to offer the potential of profitable growth but has not,
to date, generated significant revenues. We are currently reviewing
the costs and potential benefits of this activity and how they can
best be monetised.
Central costs were too high and action has already been taken to
address this by the Company's new CEO, who joined post period
end.
Financial summary
Group revenue increased 23% to GBP33.8m (H1 2020: GBP27.5m):
-- Consulting increased revenues by GBP4.6m (31%) to GBP19.7m.
Excluding the contribution from Osprey of GBP2.5m, revenue grew
organically by GBP2.1m (14%);
-- Revenues in Software and Digital Solutions decreased by GBP0.2m to GBP0.5m; and
-- Engineering grew organically overall by GBP1.8m (16%) to
GBP13.6m, with growth in TPG Maritime of GBP2.3m being partially
offset by a reduction in Westek revenues of GBP0.5m.
The Group's gross profit margin remained consistent at 24% year
on year:
-- The Consulting margin increased to 24% from 21%, principally
arising from Osprey which has taken the Group into higher margin
markets and activities;
-- Margins in Digital Solutions remained broadly constant year on year; and
-- Margins in Engineering reduced to 24% from 29% as a result of
execution and delivery issues in key overseas projects as noted
above. These costs are not expected to repeat in 2022 and margins
are expected to improve as a result.
Operating expenses increased from GBP8.4m to GBP10.0m in the
period. The key drivers include:
-- The acquisition of Osprey which added GBP0.6m;
-- Investment of GBP0.2m into the European consulting business
to drive future business performance;
-- Investment of GBP0.2m to support development of UK Software and Hydrogen activities;
-- An increase in depreciation and amortisation charges of
GBP0.2m following the acquisition of Osprey; and
-- Non-operating restructuring costs of GBP0.5m (H1 2020:
GBP0.3m) due to the departure of the previous CEO.
The Group's H1 2021 GBP1.9m (H1 2020: GBP1.7m loss) operating
loss includes the GBP0.5m termination cost for the former CEO.
Adjusted operating profit rose by 23% to GBP1.7m (H1 2020:
GBP1.4m). The GBP0.3m improvement in adjusted operating profit was
driven by a GBP1.4m increase in gross profit partially offset by an
increase in operating expenses of GBP1.1m.
H1 2021 H1 2020
GBPm GBPm
Operating loss (1.9) (1.7)
Depreciation, amortisation and
impairment 2.3 2.0
Acquisition and disposal-related
costs 0.1 0.2
Non-operating costs 0.5 0.3
Earn-out payments 0.6 0.5
Share-based payments - 0.1
Adjusted operating profit 1.7 1.4
---------------------------------- -------------- --------
Earn-out payments relate to the acquisition of Osprey.
The Group's net debt position as at 30 June 2021 was GBP3.5m (31
December 2020 net cash of GBP0.4m). Cash performance is tracking in
line with market expectations, providing sufficient liquidity and
bank covenant compliance.
Group order intake of GBP25.5m was GBP7.9m lower than that
secured in the same period last year (H1 2020: GBP33.4m). Included
in the 2020 figures, however, was the renewal of the 2 1/2 year
European Space Agency ('ESA') agreement which contributed c.
EUR18.0m (c. GBP16.0m) to H1 2020 order intake. Excluding this,
order intake across both the Consulting and Engineering business
streams was up on the prior period.
The closing order book reduced by GBP8.4m to GBP60.9m from the
2020 year-end position of GBP69.3m because of the timing of
multi-year contracts won in prior years, including ESA as noted
above. The current order book provides 95% coverage of market
revenue expectations for the 2021 financial year.
Post period-end
David Lindsay was appointed as the Company's permanent CEO on 26
July 2021.
Following his in-depth review of the business, David has
identified a number of measures which will immediately improve the
business and provide an initial upgrade in the market forecasts for
2022 to GBP6.1m adjusted Operating Profit. He sees a number of
opportunities to further improve performance.
The Company was the subject of a speculative takeover approach
by Science Group in August, which the Board regarded as
opportunistic and seeking to capitalise on the short-term impact
suffered by TP Group as a result, primarily, of the C-19 pandemic.
No formal offer was made by Science Group, and they withdrew
interest in making an offer for the Company on 3 September
2021.
During the past several weeks, Science Group has acquired more
than 27% of the shares of the Company and, despite the possible
offer for the Company being withdrawn, has requested that the
business call a General Meeting proposing that two of the current
Non-Executive Directors, Andrew McCree and Jeremy Warner-Allen, are
replaced by two of Science Group's directors Martyn Ratcliffe
(Executive Chairman and CEO of Science Group) and Peter Bertram
(non-executive Director of Science Group). The General Meeting has
been convened for 1 October 2021. The Board is vehemently
challenging the resolutions proposed by Science Group and further
details can be found in the circular posted to shareholders on 6
September 2021 and which is available on the Company's website.
Market outlook
Our UK Consulting business is well established in the defence
market, and we expect to see growth in its recurring revenues
through the frameworks agreements already in place.
Osprey will grow as airports and the aviation market generally
returns to normal operations as the C-19 impact subsides. Osprey
will also benefit from its entry into adjacent markets such as
spaceports.
Sapienza will continue to benefit from recurring revenues from
ESA. Sapienza will also serve as a stepping stone as we explore
transferring skills and services across Europe to target the
aerospace and defence markets. Sapienza's offices in France,
Germany, Italy, Netherlands and North Macedonia offer potential
in-country bases.
TPG Maritime is expected to perform well in FY22 with an
established submarine order book and potential opportunities within
the hydrogen market.
David Lindsay
14 September 2021
Condensed consolidated statement of comprehensive income
Six months Six months Year ended
ended ended
30 June 30 June 31 December
2021 2020(1,2) 2020(1)
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Revenue from continuing
operations 33,772 27,520 59,045
Cost of sales (25,702) (20,897) (43,368)
--------------------------------------- -------------- -------------- --------------
Gross profit from continuing
operations 8,070 6,623 15,677
Administrative expenses (9,976) (8,362) (20,518)
--------------------------------------- -------------- -------------- --------------
Operating loss from continuing
operations (1,906) (1,739) (4,841)
--------------------------------------- -------------- -------------- --------------
Net finance costs (145) (84) (337)
--------------------------------------- -------------- -------------- --------------
Loss before taxation from
continuing operations (2,051) (1,823) (5,178)
Taxation credit 243 249 196
--------------------------------------- -------------- -------------- --------------
Loss for the period from
continuing operations (1,808) (1,574) (4,982)
Loss for the period from
discontinued operations
(attributable to equity
holders of the company) - (2,833) (5,017)
--------------------------------------- -------------- -------------- --------------
Loss for the period (1,808) (4,407) (9,999)
--------------------------------------- -------------- -------------- --------------
Attributable to:
Equity holders of the parent
company (1,808) (4,386) (9,999)
Non-controlling interest - (21) -
--------------------------------------- -------------- -------------- --------------
Total loss for the period (1,808) (4,407) (9,999)
--------------------------------------- -------------- -------------- --------------
Other comprehensive income/(expense)
for the period:
Loss for the period (1,808) (4,407) (9,999)
Foreign exchange gains /
(losses) on translation
of foreign operations 65 (40) 427
--------------------------------------- -------------- -------------- --------------
Total comprehensive expense
for the period (1,743) (4,447) (9,572)
======================================= ============== ============== ==============
Attributable to:
Equity holders of the parent
company (1,743) (4,426) (9,572)
Non-controlling interest - (21) -
--------------------------------------- -------------- -------------- --------------
(1,743) (4,447) (9,572)
======================================= ============== ============== ==============
Earnings per share:
Loss per share (pence per
share)
Continuing operations:
Basic and diluted loss per
share (pence per share) (0.23) (0.21) (0.64)
--------------------------------------- -------------- -------------- --------------
Discontinued operations:
Basic and diluted loss per
share (pence per share) - (0.36) (0.64)
Total:
Basic and diluted loss per
share (pence per share) (0.23) (0.57) (1.28)
======================================= ============== ============== ==============
(1) The comparative condensed statements of comprehensive income
have been presented to reflect continuing operations and exclude
the results of TPG Engineering Limited which was disposed of on 29
October 2020. The comparative results for TPG Engineering Limited
are presented above as 'Loss for the period from discontinued
operations'.
(2) A reclassification between Cost of Sales and Administrative
expenses of GBP172,000 has been made for the six months to 30 June
2020 to reflect gross profit on a consistent basis.
Condensed consolidated statement of financial position
30 June 30 June 31 December
2021(1) 2020(1) 2020
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------ -------------- -------------- -------------
Assets
Non-current assets
Goodwill 8,091 8,560 8,091
Other intangible assets 18,521 18,209 19,633
Property, plant and equipment 920 1,056 962
Right-of-use assets 3,471 4,064 3,841
31,003 31,889 32,527
------------------------------------ -------------- -------------- -------------
Current assets
Inventories 1,820 1,515 1,417
Trade and other receivables 10,469 7,090 10,268
Amounts due from contract
customers 12,378 5,962 9,388
Taxation recoverable 143 - 239
Cash and bank balances 3,480 13,802 7,372
------------------------------------ -------------- -------------- -------------
28,290 28,369 28,684
Assets held for sale(1) - 6,673 -
------------------------------------ -------------- -------------- -------------
28,290 35,042 28,684
------------------------------------ -------------- -------------- -------------
Total assets 59,293 66,931 61,211
------------------------------------ -------------- -------------- -------------
Liabilities
Current liabilities
Trade and other payables (14,434) (9,911) (13,925)
Amounts due to contract customers (5,310) (3,017) (5,351)
Current tax liabilities - (108) -
Lease liabilities (619) (957) (609)
------------------------------------ -------------- -------------- -------------
(20,363) (13,993) (19,885)
Liabilities held for sale(1) - (6,673) -
------------------------------------ -------------- -------------- -------------
(20,363) (20,666) (19,885)
------------------------------------ -------------- -------------- -------------
Non-current liabilities
Trade and other payables - (512) -
Deferred taxation (2,766) (2,514) (3,001)
Lease liabilities (3,657) (3,922) (4,079)
Borrowings (7,000) (7,000) (7,000)
Provisions (223) (183) (254)
------------------------------------ -------------- -------------- -------------
(13,646) (14,131) (14,334)
------------------------------------ -------------- -------------- -------------
Total liabilities (34,009) (34,797) (34,219)
------------------------------------ -------------- -------------- -------------
Net assets 25,284 32,134 26,992
==================================== ============== ============== =============
Equity
Share capital 7,792 7,792 7,792
Share premium 18,529 18,529 18,529
Own shares held by EBT (561) (561) (561)
Translation of foreign operations 475 (44) 415
Share-based payments reserve 720 1,257 685
Retained earnings (1,672) 4,754 131
------------------------------------ -------------- -------------- -------------
Total equity due to shareholders 25,283 31,727 26,991
Non-controlling interest 1 407 1
------------------------------------ -------------- -------------- -------------
Total equity 25,284 32,134 26,992
==================================== ============== ============== =============
(1) The comparative Statement of Financial Position shows
current assets and liabilities held for sale due to the planned
disposal of TPG Engineering which was ultimately completed on 29
October 2020.
Condensed consolidated statement of changes in equity
Own
shares Share-based
Share Share held payments Translation Retained Non-controlling
capital premium by EBT reserve reserve earnings interest Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January
2021 7,792 18,529 (561) 685 415 131 1 26,992
Loss for the
period - - - - - (1,808) - (1,808)
Other
comprehensive
profit - - - - 65 - - 65
----------------- -------- -------- -------- ------------ ----------- --------- --------------- --------
Total
comprehensive
loss - - - - 65 (1,808) - (1,743)
Share-based
payments
charge - - - 35 - - - 35
Forex movement - - - - (5) 5 - -
----------------- -------- -------- -------- ------------ ----------- --------- --------------- --------
Balance at 30
June
2021 7,792 18,529 (561) 720 475 (1,672) 1 25,284
================= ======== ======== ======== ============ =========== ========= =============== ========
Balance at 1
January
2020 7,792 18,529 (561) 1,142 (4) 9,140 428 36,466
----------------- -------- -------- -------- ------------ ----------- --------- --------------- --------
Loss for the
period - - - - - (4,386) (21) (4,407)
Other
comprehensive
loss - - - - (40) - - (40)
----------------- -------- -------- -------- ------------ ----------- --------- --------------- --------
Total
comprehensive
loss - - - - (40) (4,386) (21) (4,447)
Share-based
payments
charge - - - 115 - - - 115
Balance at 30
June
2020 7,792 18,529 (561) 1,257 (44) 4,754 407 32,134
================= ======== ======== ======== ============ =========== ========= =============== ========
Balance at 1
January
2020 7,792 18,529 (561) 1,142 (4) 9,140 428 36,466
----------------- -------- -------- -------- ------------ ----------- --------- --------------- --------
Loss for the
year - - - - - (9,999) - (9,999)
Other
comprehensive
loss - - - - 427 - - 427
----------------- -------- -------- -------- ------------ ----------- --------- --------------- --------
Total
comprehensive
loss - - - - 427 (9,999) - (9,572)
Share-based
payments
charge - - - 98 - - - 98
Share-based
payments
reserves
transfer - - - (555) - 555 - -
Forex movement - - - - (8) 8 - -
Non-controlling
interest
transfer on
acquisition
of 100%
ownership
of Lift BV - - - - - 427 (427) -
----------------- -------- -------- -------- ------------ ----------- --------- --------------- --------
Balance at 31
December
2020 7,792 18,529 (561) 685 415 131 1 26,992
================= ======== ======== ======== ============ =========== ========= =============== ========
Condensed consolidated statement of cash flows
Six months Six months Year ended
ended ended
30 June 30 June 31 December
2021 2020 2020
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
---------------------------------------- -------------- -------------- --------------
Operating activities
Loss before income tax from
continuing operations (2,051) (1,823) (5,178)
Loss before income tax from
discontinued operations - (2,933) (5,144)
---------------------------------------- -------------- -------------- --------------
Total loss before taxation (2,051) (4,756) (10,322)
Adjustments for:
Depreciation, amortisation
and impairment 2,260 2,296 5,563
Finance cost 145 112 416
Share-based payment expense 35 115 98
Impairment loss on available-for-sale
assets - 2,044 2,721
Loss on disposal of subsidiary - - 596
(Increase) / decrease in
inventories (404) 2,067 483
(Increase) / decrease in
trade and other receivables (3,190) 3,786 (1,423)
Increase / (decrease) in
trade and other payables 581 (3,148) 2,017
(Decrease) / increase in
provisions (31) - 73
---------------------------------------- -------------- -------------- --------------
(2,655) 2,516 222
Income tax received / (paid) 103 (15) 189
---------------------------------------- -------------- -------------- --------------
Net cash (used in) / generated
from operating activities (2,552) 2,501 411
---------------------------------------- -------------- -------------- --------------
Investing activities
Purchase of property, plant
and equipment (143) (498) (781)
Purchase of intangible fixed
assets (529) (319) (1,562)
Acquisition of subsidiary,
net of cash acquired - - (2,000)
Acquisition of subsidiary
- payment of earn-out (35) (877) -
Disposal of subsidiary, net
of cash disposed of - - (349)
---------------------------------------- -------------- -------------- --------------
Net cash used in investing
activities (707) (1,694) (4,692)
---------------------------------------- -------------- -------------- --------------
Financing activities
New borrowings - 7,000 7,000
Interest payable (146) (107) (313)
Repayment of lease liabilities (493) (465) (1,622)
---------------------------------------- -------------- -------------- --------------
Net cash (used in) / generated
from financing activities (639) 6,428 5,065
---------------------------------------- -------------- -------------- --------------
Effect of exchange rates
on cash and cash equivalents 6 (1) 20
---------------------------------------- -------------- -------------- --------------
Net (decrease) / increase
in cash and cash equivalents (3,892) 7,234 804
Cash and cash equivalents
at the beginning of the period 7,372 6,568 6,568
---------------------------------------- -------------- -------------- --------------
Cash and cash equivalents
at the end of the period 3,480 13,802 7,372
---------------------------------------- -------------- -------------- --------------
Net increase in cash and
cash equivalents for discontinued
operations - 41 -
======================================== ============== ============== ==============
Notes to the condensed set of unaudited interim financial
statements
1. General information
TP Group is a consulting, software and technologies business,
working to make the world a safer place, employing more than 400
highly skilled individuals across six European countries. We
combine to deliver mission, business and safety critical services
and solutions across three high growth sectors - Defence, Space and
Energy.
Our customers trust us to ensure the safety, reliability and
performance of complex systems in the most challenging or arduous
situations. With global presence and proven field experience, TP
Group is a leading choice for platform builders, integrators and
users of both military and industrial systems.
The Group currently reports as three complementary value
streams:
-- Atmosphere Management Systems ('Engineering') - life support
systems and specialist electronics in critical workspaces,
-- Consulting - specialist services to enable our clients to
transform their enterprise and evolve their systems and services,
and
-- Software and Digital Solutions - solving complex problems in
dynamic and changing environments with AI and software tools.
This structure allows us to be clearer in the nature of our
offerings to support customers through the full lifecycle of their
projects or programmes. Our consultants can support initial
planning, justification and project management whilst specialist
teams can deliver software or equipment as required.
TP Group plc (the 'Company') is the Group's ultimate parent
company, is incorporated under the Companies Act and domiciled in
the United Kingdom. The address of the registered office of the
Company is Cody Technology Park, Old Ively Road, Farnborough,
Hampshire, GU14 0LX. The Company's shares are listed on the
Alternative Investment Market of the London Stock Exchange.
2. Basis of preparation
The financial information for the six months ended 30 June 2021
presented in these unaudited condensed consolidated interim
financial statements (the 'interim report') has been prepared under
the historical cost convention using accounting policies consistent
with International Financial Reporting Standards (IFRS) as adopted
by the European Union and is presented in pounds sterling, which is
the currency of the primary economic environment in which the Group
operates. All amounts have been rounded to the nearest thousand,
unless otherwise stated.
While the financial figures included in the interim report have
been computed in accordance with IFRS applicable to interim
periods, the report does not contain sufficient information to
constitute interim financial statements as defined by International
Accounting Standard 34 'Interim Financial Reporting' (IAS 34) as
adopted by the European Union (the 'EU').
The financial information set out in this interim report does
not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The Group's statutory financial statements for
the year ended 31 December 2020, prepared under IFRS as adopted by
the EU, have been delivered to the Registrar of Companies. The
auditor's report on the 2020 financial statements was unqualified,
did not contain a statement under Section 498(2) or Section 498(3)
of the Companies Act 2006 but did draw attention to a material
uncertainty related to going concern. The audit opinion was not
modified in respect of this matter.
These unaudited condensed consolidated interim financial
statements were approved for issue by the Board of Directors on 13
September 2021.
Going concern
The Directors have reviewed the Group's cash position, trading
outlook and projections for a period of 12 months from the date of
approving these unaudited interim consolidated financial
statements. The Group has positive cash resources and has met, and
is projecting to continue to meet, all its banking covenants. The
Group is performing in line with market expectations and management
projects that there is no requirement for further funding from its
facility provider to support working capital.
Accordingly, the Directors are of the opinion that there are
reasonable grounds to believe that operational and financial
projections are achievable and have a reasonable expectation that
the Group will have adequate resources to meet its obligations as
and when they fall due for the foreseeable future. The Directors
are satisfied that it is appropriate to prepare these unaudited
interim consolidated financial statements for the Group on a going
concern basis.
The Directors made specific statements in the Company's 2020
Annual Report concerning going concern. The Company's auditor drew
attention to the Directors disclosure of a material uncertainty
related to going concern and issued an unqualified audit opinion on
the 2020 consolidated Group financial statements.
Accounting policies
The accounting policies adopted by the Group in these unaudited
consolidated interim financial statements are consistent with those
applied by the Group in its audited consolidated financial
statements for the year ended 31 December 2020.
The following Standards and Interpretations are effective.
Application of these standards has no material impact on the
results of the Group:
-- Amendments to the following standards:
o IFRS 16: Covid-19 Related Rent Concessions (Amendment),
effective 1 June 2020
o IFRS 9, IAS 39. IFRS 4, IFRS 7 and IFRS 16: Interest Rate
Benchmark Reform (Amendment) - Phase 2, effective 1 January
2021
-- Amendments to References to the Conceptual Framework in IFRS Standards
Notes to the condensed set of unaudited interim financial
statements (continued)
3. Segmental reporting
The following is an analysis of the Group's revenue and results
from the continuing operations by reportable segment.
Software Central
Digital unallocated
Engineering Consulting Solutions costs(2) Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Six months ended 30 June 2021
Revenue(1) 13,612 19,678 482 - 33,772
-------------------------------------- ----------- ---------- ------------ -------------- ---------
Operating profit / (loss) 618 104 (404) (2,224) (1,906)
Depreciation, amortisation
and impairment 813 1,237 75 135 2,260
Acquisition and disposal
related costs - - - 140 140
Non-operating costs - - - 531 531
Share based payments - - - 35 35
Movement in expected earn-out
payments - - - 631 631
-------------------------------------- ----------- ---------- ------------ -------------- ---------
Adjusted operating profit
/ (loss) including non-controlling
interest 1,431 1,341 (329) (752) 1,691
Non-controlling interest - - - - -
-------------------------------------- ----------- ---------- ------------ -------------- ---------
Adjusted operating profit
/ (loss)(3) 1,431 1,341 (329) (752) 1,691
====================================== =========== ========== ============ ============== =========
Six months ended 30 June 2020(4)
Revenue 11,777 15,059 684 - 27,520
-------------------------------------- ----------- ---------- ------------ -------------- ---------
Operating profit / (loss) 733 (402) (312) (1,758) (1,739)
Depreciation, amortisation
and impairment 753 1,098 52 134 2,037
Acquisition and disposal
related costs - - - 150 150
Non-operating costs 17 118 - 136 271
Share based payments - - - 115 115
Movement in expected earn-out
payments - - - 525 525
-------------------------------------- ----------- ---------- ------------ -------------- ---------
Adjusted operating profit
/ (loss) including non-controlling
interest 1,503 814 (260) (698) 1,359
Non-controlling interest - 21 - - 21
-------------------------------------- ----------- ---------- ------------ -------------- ---------
Adjusted operating profit
/ (loss)(3) 1,503 835 (260) (698) 1,380
====================================== =========== ========== ============ ============== =========
Year ended 31 December 2020(2)
Revenue 24,021 33,100 1,924 - 59,045
-------------------------------------- ------ ------- ----- ------- -------
Operating profit / (loss) 1,761 (3,135) 2 (3,469) (4,841)
Depreciation, amortisation
and impairment 1,553 3,692 75 396 5,716
Acquisition and disposal
related costs - - - 1,035 1,035
Non-operating costs 104 792 - 209 1,105
Share based payments - - - 98 98
Movement in expected earn-out
payments - - - 479 479
Lift BV discontinued business - 132 - - 132
-------------------------------------- ------ ------- ----- ------- -------
Adjusted operating profit
/ (loss) including non-controlling
interest 3,418 1,481 77 (1,252) 3,724
Non-controlling interest - - - - -
-------------------------------------- ------ ------- ----- ------- -------
Adjusted operating profit
/ (loss)(4) 3,418 1,481 77 (1,252) 3,724
====================================== ====== ======= ===== ======= =======
Notes to the condensed set of unaudited interim financial
statements (continued)
3. Segmental reporting (continued)
(1) Revenue generated in the Digital Solutions segment to 30
June 2021 is lower than reported for the period to 30 June 2020 due
to the discontinuation of the Lift BV business previously disclosed
here.
(2) Central unallocated costs are specific costs associated with
the Group's AIM listing and other Group operational costs that are
not charged out to the operating companies.
(3) Adjusted operating profit is defined as operating result
adjusted to add back depreciation of property, plant and equipment
and right-of-use assets, amortisation of intangible assets and
impairment gains or losses on non-current assets, changes in fair
value of contingent consideration, acquisition consideration
accounted for as employment costs owing to on-going service
conditions, any other acquisition-related and disposal-related
charges, share based payment charges, and non-operating costs.
Non-operating costs are those items believed to be exceptional in
nature by virtue of their size and or incidence. The directors of
the Company believe this measure is more reflective of the
underlying performance of the Group than equivalent GAAP measures.
This is primarily due to the exclusion of non-cash items, such as
share-based payments, impairment, depreciation and amortisation, as
well as acquisition and non-operating costs. This provides
shareholders and other users of the financial statements with the
most representative year-on-year comparison of underlying operating
performance attributable to shareholders. This measure and the
separate components remain consistent with 2020.
(4) The comparative segment for the six months to 30 June 2020
has been restated to present the segments in line with the
financial statements to 31 December 2020.
4. Loss per share
The calculation of the basic loss per share is based on the loss
after tax for the period divided by the weighted average number of
shares in issue during the period as follows:
Six months Six months Year ended
ended ended
30 June 2021 30 June 2020 31 December
2020
(unaudited) (unaudited) (audited)
Number of Number of Number of
shares shares shares
Weighted average shares
in issue 779,178,719 779,178,719 779,178,719
========================== =============== =============== ==============
The weighted average number of shares in issue has been reduced
by deducting the weighted average number of shares held by the
Employee Benefit Trust of 1,606,769 shares (six months ended 30
June 2020 and year ended 31 December 2020: 1,606,769 shares).
The issue of additional shares on exercise of employee share
options would decrease the basic loss per share and there is
therefore no dilutive effect of employee share options.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR ZZGMLRFKGMZM
(END) Dow Jones Newswires
September 14, 2021 02:00 ET (06:00 GMT)
Tp (LSE:TPG)
Historical Stock Chart
From Apr 2024 to May 2024
Tp (LSE:TPG)
Historical Stock Chart
From May 2023 to May 2024