TIDMVANL
RNS Number : 0767M
Van Elle Holdings PLC
26 July 2017
Van Elle Holdings plc
For Immediate Release 26 July 2017
Preliminary Results for the year ended 30 April 2017
Van Elle Holdings plc ("Van Elle", the "Company" or the
"Group"), the AIM quoted geotechnical engineering contractor
offering a wide range of ground engineering techniques and services
to customers in a variety of UK construction end markets, announces
its preliminary results for the year ended 30 April 2017.
Highlights
Year ended Year ended Growth %
30 April 2017 30 April 2016
---------------------------------- --------------- --------------- ---------
Revenue (GBPm) 94.1 84.2 11.8
Underlying* EBITDA (GBPm) 16.3 14.4 12.9
Reported EBITDA (GBPm) 14.4 14.4 -
Underlying* operating profit
(GBPm) 11.6 11.1 4.6
Reported operating profit (GBPm) 9.7 11.1 (12.2)
Underlying* earnings per share
(p) 12.1 12.1 -
Reported earnings per share
(p) 9.8 12.1 (19.0)
Operating cash conversion (%) 91.9% 79.6%
Return on capital employed
(%) 30.6% 38.0%
---------------------------------- --------------- --------------- ---------
* before share-based payments and exceptional costs
Summary highlights
-- Successful first year on the market, delivering record
revenue and underlying operating profit
-- Group revenue increased by 11.8% to GBP94.1m (2016:
GBP84.2m), with growth in all four divisions
-- Robust operational performance and impact of sales mix
delivered gross margin of 35.5% (2016: 36.1%)
-- Underlying EBITDA increased by 12.9% to GBP16.3m (2016: GBP14.4m)
-- Underlying operating profit increased by 4.6% to GBP11.6m
(2016: GBP11.1m) reflecting sales mix effect and overhead
investment
-- Progress in delivering the growth strategy - increasing the
service offering with new techniques, rigs and geographical
presence
-- Strong balance sheet with net debt at 30 April 2017 of GBP1.5m (2016: GBP8.3m)
-- The Board is pleased to recommend a final dividend of 1.75p
per share (total dividend of 2.60p per share)
-- Trading in the new financial year has started well and is in
line with the Board's expectations
Jon Fenton, Chief Executive, commented:
"We are delighted to announce these results reflecting record
turnover and underlying operating profit in our maiden year as a
quoted company. This year will stand out as transformational in the
development of Van Elle with the admission to AIM giving the
Company an elevated platform from which to drive the business
forward.
Looking ahead, we continue to actively monitor conditions in our
core markets and, whilst mindful of the risks posed by any
sustained period of political or economic uncertainty, we are
cautiously optimistic for further progress in the year ahead."
For further information please contact:
Instinctif Parters (Financial Public Tel: 020 7457 2020
Relations)
Mark Garraway
James Gray
Rosie Driscoll
Peel Hunt LLP (Nominated Adviser and Tel: 020 7418 8900
corporate broker)
Charles Batten
Mike Bell
Justin Jones
Chairman's statement
I am delighted to announce, on behalf of the Board of Van Elle
Holdings plc, a positive set of results for the year ended 30 April
2017. This is the first full year statement following the
successful Initial Public Offering ("IPO") on the Alternative
Investment Market ("AIM") of the London Stock Exchange in October
2016.
Van Elle's equity story, which centred around the Company's
leading position in the UK, its differentiated offering and
attractive end markets, supported by a strong financial profile, a
well-invested platform and a strategy for growth, was well received
by investors.
Although we have only been a quoted company for a short time, I
believe that we have made much progress across the business and
confidence is high. It is thanks to the hard work put in by our
talented management team, as well as those working across and
within the business, that we could make this progress and create
the foundation from which to continue to grow our operation.
Highlights
I am pleased that in our maiden results as a quoted company Van
Elle has reported an 11.8% increase in revenue to GBP94.1m (2016:
GBP84.2m) and an underlying operating profit of GBP11.6m (2016:
GBP11.1m), representing a record year and continuing our impressive
year-on-year profitable growth.
These results reflect our continuing strategic drive to focus on
growth markets, enabled by targeted investment in specialist rigs,
expansion of our precast concrete manufacturing capabilities and
further expansion of our geographical footprint in Scotland,
serviced by a dedicated facility at Blantyre, Glasgow.
The IPO in October 2016, together with the funds raised,
strengthens our balance sheet and gives us the flexibility to
invest in new equipment and consider acquisitions that complement
our strategy for growth.
As a company, we have worked hard to bring together a team that
has the right combination of sector knowledge and corporate
experience to enable us to deliver on our vision and strategy.
Dividend
As a quoted company, one of our key ongoing objectives is to
create shareholder value. The Board has adopted a progressive
dividend policy and, having paid an interim dividend of 0.85p, is
recommending a final dividend of 1.75p, making a total of 2.6p for
the financial year.
Board and governance
On behalf of the Board, I would like to express our thanks to
Michael Ellis who retired from the Board in December 2016. Michael,
along with his wife Joan, founded the business some 33 years ago
and their contribution during that time has been invaluable.
Michael and Joan created the high-quality company that Van Elle now
is and I would like to wish them a happy retirement.
I am delighted to follow Michael Ellis as Chairman of Van Elle
Holdings plc and I am joined by Robin Williams as Senior
Independent Director. Robin chairs the Audit Committee and sits on
the Remuneration and Nomination Committees, both of which I chair.
We are joined on the Board by the two Executive Directors: Jon
Fenton as Chief Executive Officer and Paul Pearson as Chief
Financial Officer. The Board intends to recruit a further
Non-Executive Director to broaden the experience and support
offered to the Company during the new financial year.
I would also like to thank Thomas Lindup, who left the Board as
Executive Director in March 2017. Thomas joined the Company in 2015
and helped steer the Group through its successful IPO in October
2016.
As a board, we are committed to promoting the highest standards
of corporate governance and ensuring effective communication with
shareholders. We intend to apply the UK Corporate Governance Code
as far as it is appropriate for a Company of its size.
People
Van Elle has an outstanding group of employees and we continue
to place great importance on their engagement. Our objective is to
provide opportunities for development, personal growth and
successful careers with the Company.
All our staff have gone through a year of significant change.
They have coped admirably and delivered an excellent result. On
your behalf and on behalf of the Board, I wish to formally record
our thanks.
Outlook
The fundamental market drivers for our business look positive in
the short and medium terms. The order book remains in line with our
expectations and we are well placed in each of our markets.
This is an exciting time to be part of Van Elle as we seek to
build on the performance outlined in these accounts. As a
profitable and fast-growing geotechnical engineering company, I am
confident that the Company has an exciting year ahead. The Board
looks forward to meeting shareholders at the AGM on 12 September
2017.
Adrian Barden
Chairman
25 July 2017
Chief Executive's review
This year will stand out as being transformational in the
development of Van Elle. We successfully joined AIM, the junior
market of the London Stock Exchange, on 26 October 2016 after
extensive preparations. This step is important for the Group as not
only does it give us access to equity capital markets as we seek to
grow the business, but it has also resulted in enhanced governance
and improved discipline, which we implemented in preparation for
our IPO.
You have already heard from our Chairman on the appointments to
the Board. I would also like to echo the words of our Chairman and
take this opportunity to thank our founders, Michael and Joan, for
their vision and hard work over the last 33 years and to reassure
them that the business is in safe hands as they enjoy their well
earned retirement.
Delivering the strategy
Van Elle's strategy can be framed, quite simply, as "Driving
Profitable Growth". We aim to grow the business by broadening our
range of products and services and extending our geographical
footprint into high-growth markets. This will be achieved both
organically and selectively through acquisitions.
Capital investment has been a key driver of our growth with a
further GBP11.8m spent in the current year bringing the total to
GBP31.5m over the last three years. Our rig fleet now stands at 111
rigs (2016: 98 rigs) and we believe that Van Elle has the broadest
and most modern range of specialist piling rigs in the market.
Following our successful move into rail infrastructure and after
swiftly becoming one of the sector's leading on-track ground
engineering specialists, we have recently completed works on our
new test track located at our Kirkby-in-Ashfield site. As one of
the largest privately owned specialist facilities in the country,
it is designed to enable us to test equipment, develop new
techniques and practice for complex projects. There is no other UK
specialist putting such time and resource into developing
innovative solutions for the UK's rail network.
As part of our continued development, the Group is launching its
own training academy to deliver an unequalled standard of training
to all industry professionals and companies. Our brand new
state-of-the-art, purpose-built training facility is due for
completion late summer 2017.
To extend our geographical footprint, we have recently invested
in a new factory, offices and a maintenance depot in Blantyre near
Glasgow. We often work on large schemes in Scotland and
manufacturing our Smartfoot(R) precast ground beams locally will
ensure that mobilisation costs are minimised whilst also delivering
environmental benefits, which is key for our housebuilding
partners. We are always looking for ways in which we can improve
and we see this commitment to Scotland as the next step in
delivering a truly comprehensive service for years to come.
We continue to pursue acquisition opportunities and discussions
are ongoing with several interested parties. We have discounted
certain targets due to unrealistic price expectations and lack of
fit; however, there remains a positive pipeline of good
opportunities.
Trading performance
I am pleased that we successfully grew revenues by 11.8% in the
year to GBP94.1m (2016: GBP84.2m), our fourth successive year of
double-digit revenue growth. UK construction output grew by 2.2%
for the same period, reflecting our view that we continue to grow
our market share. We also maintained our record of profitable
growth since 2010.
In terms of our performance in the end markets, sales to the
housebuilding sector were up 24.4% to GBP42.5m (2016: GBP34.2m) and
infrastructure sector were up 17.3% to GBP28.9m (2016: GBP24.6m).
Sales to the commercial and industrial sector reduced by 17.0% to
GBP18.8m (2016: GBP22.7m) which was, in part a reflection of some
short term market uncertainty and the deferral or cancellation of
several projects but also reflects the completion of several large
education and retail projects by the Company in the previous year.
The ability to redirect resources to reflect short term trends in
our markets is a key strength of the business, mitigating the
impact of a slow down in any one sector.
As we reported in March 2017, the Group experienced a
challenging period in its rail business during the fourth quarter
with the start dates for several contracts delayed and expected
call-off and work distribution schedules revised. Whilst we have
seen some encouraging signs of stabilisation in the market, and
remain confident in the long term structural growth opportunity in
rail, we are remaining cautious as to the near term outlook for the
sector.
Operating performance
Sales have grown in each of our operating segments, with a
particularly strong performance in Ground Engineering Products, up
71.2% to GBP10.4m (2016: GBP6.1m). This has been driven by a
significant increase in demand for Smartfoot(R) as well as
additional precast concrete products and our additional investment
in manufacturing capacity has enabled this demand to be met.
Sales growth was also strong in Specialist Piling, up 16.6% to
GBP30.1m (2016: GBP25.8m), enabled by our investment in several
specialist rigs and equipment during the year. The restricted
access business performed strongly, including securing its largest
ever contract at Eden Brows. The division's profit result though
was adversely impacted by the weaker-than-expected performance in
the higher margin rail business during the fourth quarter.
General Piling has seen sales growth in the year, up 1.9% to
GBP42.9m (2016: GBP42.1m), a result of the healthy housebuilding
sector offset by reduced demand for industrial and commercial work.
Divisional gross margin remained strong at 32% (2016: 31%),
reflecting the Group's ability to deliver a large number of
contracts across a broad range of end markets, achieving good
returns through its long-standing and effective operational
model.
Ground Engineering Services has increased its sales by 4.6% to
GBP10.6m (2016: GBP10.2m), boosted by the establishment of a
stand-alone operation in Scotland during January 2017.
Outlook
Trading in the new financial year has started well and is in
line with our expectations. We are seeing opportunities with each
of our markets as we continue our strategy of broadening our range
of products and services. We continue to actively monitor
conditions in our core markets and, whilst mindful of the risks
posed by any sustained period of political or economic uncertainty,
we are cautiously optimistic for further progress in the year
ahead.
I continue to believe that, with our growth strategy described
above, Van Elle is well positioned to deliver further value to
shareholders in the year ahead.
Jon Fenton
Chief Executive Officer
25 July 2017
Financial Review
Revenue
The Group continued its strong revenue growth during the year.
Revenue for the year ended 30 April 2017 was GBP94.1m (2016:
GBP84.2m), which represented an increase of 11.8%. Our business
continues to be weighted towards the second half of the year as
shown below:
2017 2016 Change 2017 2016
GBP'000 GBP'000 % % %
--------- --------- --------- ------- ------ ------
H 1 43,126 40,063 7.6 45.8 47.6
H 2 50,967 44,136 15.5 54.2 52.4
--------- --------- --------- ------- ------ ------
Revenue 94,093 84,199 11.8 100.0 100.0
--------- --------- --------- ------- ------ ------
Group results are seasonally weighted to H2 due to work patterns
over the Christmas and Easter holiday periods, particularly in the
infrastructure sector. Weighting is most pronounced in the highest
margin Specialist Piling division which has an additional impact on
the split of profit. This year saw the seasonal weighting further
impacted by a lower level of rail infrastructure activity year on
year in Q1 as well as a strong Q3 that saw delivery of the Eden
Brows contract for GBP5.4m, alongside an active rail sector.
Our strategy is to direct our resources and investment into
growth markets and, by tracking enquiry levels by end market, this
acts as a barometer for identifying trends and targeting our
activities into the growth areas. The mix of revenue by end markets
is shown below:
2017 2016 Change 2017 2016
GBP'000 GBP'000 % % %
--------------------------- --------- --------- ------- ------ ------
Housebuilding 42,504 34,156 24.4 45.2 40.6
Infrastructure 28,906 24,637 17.3 30.7 29.3
Commercial and industrial 18,814 22,667 (17.0) 20.0 26.9
Public sector 3,171 2,425 30.8 3.4 2.9
Other 698 315 121.9 0.7 0.4
--------------------------- --------- --------- ------- ------ ------
Revenue 94,093 84,199 11.8 100.0 100.0
--------------------------- --------- --------- ------- ------ ------
New housing, infrastructure and public sector continued to
generate growth with strong revenues in this year's sales mix
buoyed by the healthy housing market and the Government's
investment in the country's infrastructure networks. The commercial
and industrial revenues fell year on year as 2016 benefited from
several significant contracts for retail developments and student
accommodation units in the education sector, boosting
performance.
The mix of revenue by our divisions is shown below:
2017 2016 Change 2017 2016
GBP'000 GBP'000 % % %
----------------------------- --------- --------- ------- ------ ------
General Piling 42,905 42,111 1.9 45.7 50.0
Specialist Piling 30,126 25,840 16.6 33.2 30.6
Ground Engineering Services 10,621 10,151 4.6 10.8 12.1
Ground Engineering Products 10,441 6,097 71.2 10.3 7.3
----------------------------- --------- --------- ------- ------ ------
Revenue 94,093 84,199 11.8 100.0 100.0
----------------------------- --------- --------- ------- ------ ------
The changing mix reflects our focus on growth markets as well as
our ability to focus resources where we feel the best opportunities
lie. We have targeted investment into several specialist rigs and
equipment during the year and this will be our continuing strategy
into the medium term.
Our investment in our production capabilities has increased our
capacity to meet demand from the housebuilders for Smartfoot(R)
modular beams and internal demand for precast piles, reducing our
reliance on the supply chain. The returns can be seen in our growth
in Ground Engineering Products revenues.
Gross profit
The gross margin of the Group has reduced slightly to 35.5%
(2016: 36.1%), reflecting sales mix changes due to reduced rail
activity in Q4. The delay and restructuring of several contracts
prior to the year end adversely impacted utilisation of our RRV
rigs which had a consequent impact on divisional overhead recovery.
The variability of timing of contracts in the rail sector is
unfortunately a feature of Government-backed infrastructure spend
and one that we are mindful of and will continue to monitor closely
going forward.
Operating profit
The strong revenue performance has translated into strong
underlying EBITDA growth during the year. Our EBITDA, before
exceptional IPO costs and share-based payment charges, for the year
ended 30 April 2017 was GBP16.3m (2016: GBP14.4m), which
represented an increase of 12.9%.
2017 2016 Change
GBP'000 GBP'000 %
----------------------------- --------- --------- --------
Underlying EBITDA 16,250 14,388 12.9%
Share-based payments (77) - -
Exceptional items (1,781) - -
----------------------------- --------- --------- --------
EBITDA 14,392 14,388 -
Depreciation / amortisation (4,687) (3,333) -
----------------------------- --------- --------- --------
Operating profit 9,705 11,055 (12.2%)
----------------------------- --------- --------- --------
Underlying EBITDA 17.3% 17.1%
EBITDA 15.3% 17.1%
Underlying operating margin 12.3% 13.1%
Operating margin 10.3% 13.1%
----------------------------- --------- --------- --------
Our underlying EBITDA margin has improved marginally to 17.3%
(2016: 17.1%) despite the sales mix impact of reduced rail activity
and an investment in overheads to facilitate our year on year
growth strategy. Consequently, our underlying operating margin has
reduced slightly to 12.3% (2016: 13.1%).
Exceptional costs
Exceptional items, by their size, incidence or nature, are
disclosed separately to allow a better understanding of the
underlying performance of the Group. During the year, exceptional
items of GBP1,781,000 were incurred in respect of the IPO of the
Company on 26 October 2016 and legal costs associated with post IPO
claim and settlements (see note 4).
The Board believes that the underlying performance measures for
operating profit, EBITDA and EPS, stated before the deduction of
exceptional items and share-based payment charges, give a clearer
indication of the actual performance of the business.
Net finance cost
Net finance costs were GBP422,000 (2016: GBP333,000) and
interest was covered 23.0 times (2016: 33.2 times). This increase
reflects the targeted capital investment expenditure over the last
couple of years funded by hire purchase lease contracts. The hire
purchase contracts are at fixed rates of interest and normally for
a five-year term.
Taxation
The effective tax rate for the year was 20.8% (2016: 21.2%). The
decrease in effective tax rate from the previous year is
principally due to the adjustment in respect of prior year charges
mitigated by exceptional IPO costs of GBP1,348,000 being disallowed
for tax purposes. The tax charge includes a deferred tax credit of
GBP40,000 arising due to substantively enacted reductions in the
rate of corporation tax to 17% by April 2020.
The Group has paid GBP2,281,000 (2016: GBP1,748,000) of
corporation tax during the year.
Contingent liability
Our interim announcement referenced a possible liability
relating to material bonus payments allegedly due to a former
employee pursuant to historic employment arrangements. Having
robustly rejected that any such liability exists, the Board has now
been informed by solicitors acting for the former employee, that he
no longer wishes to pursue the claim.
Dividends
The Board has adopted a progressive dividend policy. On 28
February 2017, the Company paid an interim dividend of 0.85p per
share. The Board is now recommending a final dividend of 1.75p per
share making a total dividend of 2.60p per share for the financial
year.
Subject to approval at our Annual General Meeting of
shareholders on 12 September 2017, the recommended final dividend
will be paid on 29 September 2017 to shareholders who are on the
register on 22 September 2017.
Earnings per share
The underlying basic earnings per share was 12.1p (2016: 12.1p),
based on underlying earnings of GBP9,125,000 (2016: GBP8,445,000).
Underlying earnings are stated after adding back GBP1,781,000 of
exceptional IPO costs, GBP77,000 of share-based payment charges and
deducting tax arising on exceptional charges of GBP86,000.
This flat performance in underlying earnings per share reflects
the consequences of the additional funds raised on IPO to fund
future acquisitions with no acquisitions having been completed in
the period.
Capital structure and allocation
The Group's capital structure is kept under constant review,
taking account of the need for, and availability and cost of,
various sources of finance.
The Group's objective is to deliver long-term value to its
shareholders whilst maintaining a balance sheet structure that
safeguards the Group's financial position through economic cycles.
In this context, the Board has established clear priorities for the
use of capital. In order of priority these are:
-- to fund profitable organic growth opportunities;
-- to finance bolt-on acquisitions that meet the Group's investment criteria;
-- to pay ordinary dividends at a level which allows dividend growth through the cycle; and
-- where the balance sheet allows, to deploy funds for the
benefit of shareholders in the most appropriate manner.
Balance sheet summary
2017 2016
GBP'000 GBP'000
-------------------------------------------- --------- ---------
Fixed assets (including intangible assets) 34,440 27,411
Net working capital 5,337 3,993
Net debt (1,458) (8,341)
Taxation and provisions (1,998) (2,311)
-------------------------------------------- --------- ---------
Net assets 36,321 20,752
-------------------------------------------- --------- ---------
The Group has increased net assets by GBP15.6m to GBP36.3m
(2016: GBP20.8m) during the year. This increase is partly due to
the issue of shares on IPO, raising net funds of GBP8.8m to finance
future acquisitions, and the balance is retained profit from robust
underlying trading for the year.
The Group continues to invest in specialist rigs to drive growth
in our chosen markets, as well as continuing to invest in our
facilities with capital expenditure of GBP11.8m in the year and a
corresponding annual depreciation charge of GBP4.7m.
The ROCE has decreased in the period to 30.6% at 30 April 2017
(2016: 38.0%), reflecting the additional capital expenditure
investment during the year.
Analysis of net debt
2017 2016
GBP'000 GBP'000
--------------------------- --------- ---------
Bank loans (1,275) (1,425)
Other loans (205) -
Finance leases (12,836) (10,517)
--------------------------- --------- ---------
Total borrowings (14,316) (11,942)
Cash and cash equivalents 12,858 3,601
--------------------------- --------- ---------
Net debt (1,458) (8,341)
--------------------------- --------- ---------
Net debt has reduced by GBP6.9m to GBP1.5m at 30 April 2017,
reflecting the net cash inflow from the additional shares issued as
part of the IPO of GBP8.8m, and the movement in hire purchase
obligations.
Cash flow summary
2017 2016
GBP'000 GBP'000
---------------------------------------------- --------- ---------
Operating cash flows before working capital 14,380 14,335
Working capital movements (1,251) (2,917)
---------------------------------------------- --------- ---------
Cash generated from operations 13,129 11,418
Net interest paid (422) (333)
Income tax paid (2,281) (1,748)
---------------------------------------------- --------- ---------
Net cash generated from operating activities 10,426 9,337
Capital expenditure (5,495) (6,177)
Financing activities 4,326 (1,903)
---------------------------------------------- --------- ---------
Net increase in cash and cash equivalents 9,257 1,257
The Group has always placed a high priority on cash generation
and the active management of working capital. Cash generated from
operations was GBP13.1m (2016: GBP11.4m), representing 92% of
EBITDA (2016: 80%).
Paul Pearson
Chief Financial Officer
25 July 2017
Consolidated statement of comprehensive income
For the year ended 30 April 2017
Note 2017 2016
GBP'000 GBP'000
------------------------------------------- ----- --------- ---------
Revenue 2 94,093 84,199
Cost of sales (60,712) (53,796)
------------------------------------------- ----- --------- ---------
Gross profit 33,381 30,403
Administrative expenses (22,018) (19,348)
Other operating income 3 200 -
------------------------------------------- ----- --------- ---------
Operating profit before exceptional costs
and share-based payment expense 11,563 11,055
Share-based payment expense (77) -
Exceptional costs 4 (1,781) -
------------------------------------------- ----- --------- ---------
Operating profit 9,705 11,055
Finance expense (436) (344)
Finance income 14 11
------------------------------------------- ----- --------- ---------
Profit before tax 9,283 10,722
Income tax expense 5 (1,930) (2,277)
------------------------------------------- ----- --------- ---------
Total comprehensive income for the year 7,353 8,445
Earnings per share (pence)
Basic 7 9.8 12.1
Diluted 7 9.8 12.1
Underlying earnings per share (pence)
Basic 7 12.1 12.1
Diluted 7 12.1 12.1
------------------------------------------- ----- --------- ---------
All amounts relate to continuing operations. There was no other
comprehensive income in either the current or preceding year.
Consolidated statement of financial position
As at 30 April 2017
2017 2016
GBP'000 GBP'000
------------------------------- -------- --------
Non-current assets
Property, plant and equipment 32,110 25,120
Intangible assets 2,330 2,291
-------------------------------- -------- --------
34,440 27,411
------------------------------- -------- --------
Current assets
Inventories 2,423 1,611
Trade and other receivables 18,796 16,696
Cash and cash equivalents 12,858 3,601
-------------------------------- -------- --------
34,077 21,908
------------------------------- -------- --------
Total assets 68,517 49,319
-------------------------------- -------- --------
Current liabilities
Trade and other payables 15,882 14,314
Loans and borrowings 4,461 3,500
Corporation tax payable 878 1,224
-------------------------------- -------- --------
21,221 19,038
------------------------------- -------- --------
Non-current liabilities
Loans and borrowings 9,855 8,442
Provisions 342 375
Deferred tax 778 712
-------------------------------- -------- --------
10,975 9,529
------------------------------- -------- --------
Total liabilities 32,196 28,567
-------------------------------- -------- --------
Net assets 36,321 20,752
-------------------------------- -------- --------
Equity
Share capital 1,600 1,006
Share premium 8,633 -
Retained earnings 26,070 19,728
Non-controlling interest 18 18
-------------------------------- -------- --------
Total equity 36,321 20,752
-------------------------------- -------- --------
Consolidated statement of cash flows
For the year ended 30 April 2017
Note 2017 2016
GBP'000 GBP'000
----------------------------------------------- ----- -------- --------
Cash flows from operating activities
Cash generated from operations 8 13,129 11,418
Interest received 14 11
Interest paid (436) (344)
Income tax paid (2,281) (1,748)
----------------------------------------------- ----- -------- --------
Net cash generated from operating activities 10,426 9,337
----------------------------------------------- ----- -------- --------
Cash flows from investing activities
Purchases of property, plant and equipment (5,562) (6,162)
Disposal of property, plant and equipment 138 97
Purchases of intangibles (71) (112)
----------------------------------------------- ----- -------- --------
Net cash absorbed in investing activities (5,495) (6,177)
----------------------------------------------- ----- -------- --------
Cash flows from financing activities
Proceeds from bank borrowings - 1,425
Repayment of bank borrowings (150) -
Proceeds from Invest to Grow loan 260 -
Repayments of Invest to Grow loan (55) -
Issue of shares (net of issue costs) 8,833 -
Repayment of confidential invoice discounting
facility - (4)
Payments to finance lease creditors (3,882) (2,903)
Dividends paid (680) (421)
----------------------------------------------- ----- -------- --------
Net cash generated/(absorbed) in financing
activities 4,326 (1,903)
----------------------------------------------- ----- -------- --------
Net increase in cash and cash equivalents 9,257 1,257
Cash and cash equivalents at beginning
of year 3,601 2,344
----------------------------------------------- ----- -------- --------
Cash and cash equivalents at end of year 9 12,858 3,601
----------------------------------------------- ----- -------- --------
Consolidated statement of changes in equity
For the year ended 30 April 2017
Non-controlling
Share Share interest Retained Total
capital premium earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- ---------- ---------- ---------------- ----------- ---------
Balance at 1 May 2015 1,006 - 18 11,704 12,728
----------------------------- ---------- ---------- ---------------- ----------- ---------
Total comprehensive income - - - 8,445 8,445
Dividend paid - - - (421) (421)
- - - 8,024 8,024
----------------------------- ---------- ---------- ---------------- ----------- ---------
Balance at 30 April 2016 1,006 - 18 19,728 20,752
----------------------------- ---------- ---------- ---------------- ----------- ---------
Total comprehensive income - - - 7,353 7,353
Share re-designation 63 - - - 63
Issue of bonus shares 331 - - (331) -
Issue of ordinary shares on
IPO 200 9,800 - - 10,000
Share issue costs - (1,167) - - (1,167)
Dividends paid - - - (680) (680)
----------------------------- ---------- ---------- ---------------- ----------- ---------
594 8,633 - 6,342 15,569
----------------------------- ---------- ---------- ---------------- ----------- ---------
Balance at 30 April 2017 1,600 8,633 18 26,070 36,321
----------------------------- ---------- ---------- ---------------- ----------- ---------
Notes to the preliminary results
For the year ended 30 April 2017
1. Basis of preparation
The consolidated financial statements and preliminary
announcement of Van Elle Holdings plc for the year ended 30 April
2017 were authorised for issue by the Board of Directors on 25 July
2017.
The financial information included within this preliminary
announcement does not constitute statutory accounts within the
meaning of section 435 of the Companies Act 2006 (the "Act"). The
financial information for the year ended 30 April 2017 has been
extracted from the statutory accounts on which an unqualified audit
opinion has been issued.
The financial statements for the year ended 30 April 2017 will
be posted to shareholders on 21 August 2017 and copies will be
available from that date from the company secretary at the
registered office of the Company, Kirkby Lane, Pinxton,
Nottinghamshire, NG16 6JA. The statutory accounts for the year
ended 30 April 2017 will be delivered to the Registrar of Companies
following the Company's Annual General Meeting.
The consolidated financial statements of Van Elle Holdings plc
and its subsidiaries have been prepared in accordance with
International Financial Reporting Standards as endorsed by the
European Union ("IFRS"), International Financial Reporting
Standards Interpretation Committee ("IFRS IC") interpretations and
those provisions of the Companies Act 2006 applicable to companies
reporting under IFRS. The Group financial statements have been
prepared on the going concern basis and adopting the historical
cost convention. The accounting policies adopted are consistent
with those of the previous financial year. New standards and
interpretations which came into force during the year did not have
a significant impact on the Group's financial statements.
2. Segment information
The Group evaluates segmental performance based on profit or
loss from operations calculated in accordance with IFRS but
excluding non-recurring losses, such as goodwill impairment, and
the effects of share-based payments. Inter-segment sales are priced
along the same lines as sales to external customers, with an
appropriate discount being applied to encourage use of group
resources at a rate acceptable to local tax authorities. Loans and
borrowings, insurances and head office central services' costs are
allocated to the segments based on levels of turnover. All turnover
and operations are based in the UK.
Operating segments - 30 April 2017
Ground Ground
General Specialist Engineering Engineering Head Total
Piling Piling Services Products Office
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Revenue
Total revenue 45,008 30,126 10,621 13,714 - 99,469
Inter-segment revenue (2,103) - - (3,273) - (5,376)
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Revenue 42,905 30,126 10,621 10,441 - 94,093
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Operating profit
Underlying operating
profit 4,685 5,355 772 751 - 11,563
Share-based payments - - - - (77) (77)
Exceptional item - - - - (1,781) (1,781)
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Operating profit 4,685 5,355 772 751 (1,858) 9,705
Finance expense - - - - (436) (436)
Finance income - - - - 14 14
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Profit before tax 4,685 5,355 772 751 (2,280) 9,283
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Assets
Property, plant
& equipment 10,456 9,696 2,778 1,373 7,807 32,110
Inventories 414 370 179 1,460 - 2,423
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Reportable segment
assets 10,870 10,066 2,957 2,833 7,807 34,533
Intangible assets - - - - 2,330 2,330
Trade and other
receivables - - - - 18,796 18,796
Cash and cash equivalents - - - - 12,858 12,858
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Total assets 10,870 10,066 2,957 2,833 41,791 68,517
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Liabilities
Loans and borrowings - - - - 14,316 14,316
Trade and other
payables - - - - 16,760 16,760
Provisions - - - - 342 342
Deferred tax - - - - 778 778
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Total liabilities - - - - 32,196 32,196
----------------------------- ---------- ------------- ------------- ------------- --------- --------
Other information
Capital expenditure 4,267 2,948 1,841 668 2,041 11,765
Depreciation / amortisation 1,631 1,656 554 211 635 4,687
----------------------------- ---------- ------------- ------------- ------------- --------- --------
There are no individual customers accounting for more than 10%
of Group revenue in either the current or preceding year.
Operating segments - 30 April 2016
Ground Ground
General Specialist Engineering Engineering Head Total
Piling Piling Services Products Office
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Revenue
Total revenue 42,707 25,840 10,151 8,358 37 87,093
Inter-segment revenue (596) - - (2,261) (37) (2,894)
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Revenue 42,111 25,840 10,151 6,097 - 84,199
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Operating profit
Underlying operating
profit 4,735 5,879 456 (15) - 11,055
Share-based payments - - - - - -
Exceptional item - - - - - -
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Operating profit 4,735 5,879 456 (15) - 11,055
Finance expense - - - - (344) (344)
Finance income - - - - 11 11
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Profit before tax 4,735 5,879 456 (15) (333) 10,722
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Assets
Property, plant
& equipment 7,949 8,372 1,444 907 6,448 25,120
Inventories 338 217 82 974 - 1,611
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Reportable segment
assets 8,287 8,589 1,526 1,881 6,448 26,731
Intangible assets - - - - 2,291 2,291
Trade and other
receivables - - - - 16,696 16,696
Cash and cash equivalents - - - - 3,601 3,601
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Total assets 8,287 8,589 1,526 1,881 29,036 49,319
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Liabilities
Loans and borrowings - - - - 11,942 11,942
Trade and other
payables - - - - 15,538 15,538
Provisions - - - - 375 375
Deferred tax - - - - 712 712
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Total liabilities - - - - 28,567 28,567
--------------------------- ---------- ------------- ------------- ------------- --------- --------
Other information
Capital expenditure 2,534 4,280 359 390 3,842 11,405
Depreciation /
amortisation 1,421 1,316 435 161 - 3,333
--------------------------- ---------- ------------- ------------- ------------- --------- --------
3. Other operating income
2017 2016
GBP'000 GBP'000
---------------------------------------- -------- --------
Recovery in respect of insurance excess 200 -
---------------------------------------- -------- --------
Pursuant to an agreement with the Company, an employee settled
an insurance policy excess of GBP200,000. This was in respect of a
claim on a contract for which there is already an insurance
provision for the policy excess.
4. Exceptional costs
2017 2016
GBP'000 GBP'000
-------------------------------- -------- --------
Initial Public Offering ("IPO") 1,452 -
Other exceptional costs 329 -
-------------------------------- -------- --------
1,781 -
-------------------------------- -------- --------
Initial Public Offering ("IPO")
The charge in the year represents fees and other costs arising
because of the IPO which have not been treated as deductions
against the share premium account. Of the exceptional charge of
GBP1,452,000, approximately GBP342,000 is treated as tax deductible
and the balance of GBP1,110,000 is treated as disallowed tax
expenses in the tax computation (see note 5).
Other exceptional items
The other exceptional item relates to severance costs arising
from the Board changes following the IPO and other legal matters
arising as a consequence of the IPO. These are treated as fully tax
deductible within the tax computation.
5. Income tax expense
2017 2016
GBP'000 GBP'000
--------------------------------------------------- -------- --------
Current tax expense
Current tax on profits for the year 2,060 2,071
Adjustment for (over)/underprovision in the
prior period (196) 90
--------------------------------------------------- -------- --------
Total current tax 1,864 2,161
--------------------------------------------------- -------- --------
Deferred tax expense
Origination and reversal of temporary differences 103 105
Recognition of previously unrecognised deferred
tax assets 3 11
Effect of decreased tax rate on opening balance (40) -
--------------------------------------------------- -------- --------
Total deferred tax 66 116
--------------------------------------------------- -------- --------
Income tax expense 1,930 2,277
--------------------------------------------------- -------- --------
The reasons for the difference between the actual tax charge for
the year and the standard rate of corporation tax in the United
Kingdom applied to profits for the year are as follows:
2017 2016
GBP'000 GBP'000
--------------------------------------------------- -------- --------
Profit before income taxes 9,283 10,722
--------------------------------------------------- -------- --------
Tax using the standard corporation tax rate
of 19.9% (2016: 20%) 1,849 2,144
Adjustments for (over)/underprovision in previous
periods (193) 101
Expenses not deductible for tax purposes 288 55
Short-term timing differences (14) (23)
--------------------------------------------------- -------- --------
Total income tax expense 1,930 2,277
--------------------------------------------------- -------- --------
During the year ended 30 April 2017, because of the reduction in
the UK corporation tax rate from 20% to 19% from 1 April 2017,
corporation tax has been calculated at 19.9% of estimated
assessable profit for the year (2016: 20%).
The Finance (No 2) Act 2015, which provides for reductions in
the main rate of corporation tax from 20% to 19% effective from 1
April 2017 and to 18% effective from 1 April 2020, was
substantively enacted on 26 October 2015. Subsequently, the Finance
Act 2016, which provides for a further reduction in the main rate
of corporation tax to 17% effective from 1 April 2020, was
substantively enacted on 6 September 2016. These rate reductions
have been reflected in the calculation of the deferred tax at the
statement of financial position date. The closing deferred tax
liability at 30 April 2017 has been calculated at 17% reflecting
the tax rate at which the deferred tax is expected to be utilised
in future periods.
6. Dividends
2017 2016
GBP'000 GBP'000
------------------------------------------------ -------- --------
Interim dividend - year ended 2016
* A and B ordinary shares (16p per share) - 312
* C ordinary shares (15p per share) - 33
* D ordinary shares (17p per share) - 76
Interim dividend - year ended 2017
0.85p per ordinary share paid during the year 680 -
------------------------------------------------ -------- --------
680 421
------------------------------------------------ -------- --------
The proposed final dividend for the year ended 30 April 2017 of
1.75p per share amounting to GBP1,400,000 and representing a total
dividend of 2.6p per share for the full year, will be paid on 29
September 2017 to the shareholders on the register at the close of
business on 22 September 2017. The proposed final dividend is
subject to approval by shareholders at the Annual General Meeting
and has not been included as a liability in these financial
statements.
7. Earnings per share
The calculation of basic and diluted earnings per share is based
on the following data:
2017 2016
'000 '000
----------------------------------------------------- -------- --------
Basic weighted average number of shares 75,123 70,000
Dilutive potential ordinary shares from share - -
options
----------------------------------------------------- -------- --------
Diluted weighted average number of shares 75,123 70,000
----------------------------------------------------- -------- --------
GBP'000 GBP'000
----------------------------------------------------- -------- --------
Profit for the year 7,353 8,445
----------------------------------------------------- -------- --------
Add back / (deduct):
Share-based payments 77 -
Exceptional costs 1,781 -
Tax effect of the above (86) -
----------------------------------------------------- -------- --------
Underlying profit for the year 9,125 8,445
----------------------------------------------------- -------- --------
Pence Pence
----------------------------------------------------- -------- --------
Earnings per share
Basic 9.8 12.1
Diluted 9.8 12.1
Basic - excluding exceptional costs and share-based
payments 12.1 12.1
Diluted - excluding exceptional costs and
share-based payments 12.1 12.1
----------------------------------------------------- -------- --------
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders and on 75,123,288
ordinary shares (2016: 70,000,000) being the weighted average
number of ordinary shares. In accordance with IAS 33 the weighted
average number of shares in issue during the period has been
retrospectively adjusted for the proportionate change in the number
of the shares outstanding because of the bonus issue and share
splits that occurred on admission to AIM.
The underlying earnings per share is based on profit adjusted
for exceptional operating costs and share-based payment charges,
net of tax, and on the same weighted average number of shares used
in the basic earnings per share calculation above. The Directors
consider that this measure provides an additional indicator of the
underlying performance of the Group.
There is no dilutive effect of the share options as performance
conditions remain unsatisfied and the share price was below the
exercise price.
8. Cash generated from operations
2017 2016
GBP'000 GBP'000
---------------------------------------------------- -------- --------
Operating profit 9,705 11,055
Adjustments for:
Depreciation of property, plant and equipment 4,687 3,333
Profit on disposal of property, plant and
equipment (89) (53)
Share-based payment expense 77 -
---------------------------------------------------- -------- --------
Operating cash flows before movement in working
capital 14,380 14,335
Increase in inventories (812) (507)
(Increase)/decrease in trade and other receivables (1,950) 440
Increase/(decrease) in trade and other payables 1,544 (1,919)
Decrease in provisions (33) (931)
---------------------------------------------------- -------- --------
Cash generated from operations 13,129 11,418
---------------------------------------------------- -------- --------
9. Analysis of cash and cash equivalents and reconciliation to net debt
2017 2016
GBP'000 GBP'000
--------------------------- --------- ---------
Cash at bank 12,810 3,550
Cash in hand 48 51
--------------------------- --------- ---------
Cash and cash equivalents 12,858 3,601
Bank loans secured (1,275) (1,425)
Other loans secured (205) -
Finance leases (12,836) (10,517)
--------------------------- --------- ---------
Net debt (1,458) (8,341)
--------------------------- --------- ---------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SEIFMIFWSELW
(END) Dow Jones Newswires
July 26, 2017 02:00 ET (06:00 GMT)
Van Elle (LSE:VANL)
Historical Stock Chart
From Apr 2024 to May 2024
Van Elle (LSE:VANL)
Historical Stock Chart
From May 2023 to May 2024