TIDMAVS
RNS Number : 9240G
Avesco Group PLC
13 June 2013
EMBARGOED UNTIL 7.00am, 13 June 2013
AVESCO GROUP plc
RESULTS FOR THE THREE MONTHS AND SIX MONTHS ENDED 31 MARCH
2013
Avesco Group plc (AIM: AVS), a leading international provider of
services to the corporate presentation, entertainment and broadcast
markets, announces its results for the three months and six months
ended 31 March 2013.
KEY HIGHLIGHTS
Six months to 31 March 2013
-- Revenue down 2% to GBP65.9m (six months ended 31 March 2012: GBP67.5m)
-- Operating profit increased to GBP2.7m (six months ended 31 March 2012: GBP1.7m)
-- Trading profit increased to GBP2.8m (six months ended 31 March 2012: GBP2.1m)*
-- Trading EBITDA up 1% to GBP11.8m (six months ended 31 March 2012: GBP11.6m)*
-- Basic earnings per share of 4.8p (six months ended 31 March 2012: 3.7p)
-- Adjusted basic earnings per share of 7.5p (six months ended 31 March 2012: 5.1p)*
Three months to 31 March 2013
-- Revenue up 5% to GBP35.7m (three months ended 31 March 2012: GBP33.9m)
-- Operating profit increased to GBP2.9m (three months ended 31 March 2012: GBP2.0m)
-- Trading profit increased to GBP2.9m (three months ended 31 March 2012: GBP2.0m)*
-- Trading EBITDA up 8% to GBP7.5m (three months ended 31 March 2012: GBP6.9m)*
-- Basic earnings per share of 7.0p (three months ended 31 March 2012: 6.3p)
-- Adjusted basic earnings per share of 9.6p (three months ended 31 March 2012: 6.3p)*
* As described in note 3, the Group uses certain non-GAAP
alternative measures to assess underlying operating
performance.
Court Case Settlement
-- Final settlement and receipt of Disney litigation
considerably in excess of previous estimates
-- A distribution will be made to shareholders and LTIP holders
(equivalent to GBP1.10 per share/LTIP) subject to shareholder
approval
Richard Murray, Chairman, commented:
"In my statement in March 2013, I reported that the Group's
underlying trading was showing encouraging signs after a slow first
quarter. Whilst the results for the quarter ended 31 March 2013
showed an improvement on the previous quarter, our markets remain
difficult with competitive pricing pressures and limited
visibility. The post-Olympic pick-up in demand in the UK has been
much slower than anticipated and our businesses in Germany have
also suffered from difficult market conditions and the departure of
some key staff. Therefore, as announced on 4 June 2013, we now
believe that it is likely that our results for the full year to 30
September 2013 will be below previous market expectations. 2014
sees a return to a run of major sporting events around the world,
including the Winter Olympics in Russia, the Commonwealth Games in
Scotland and the FIFA World Cup in Brazil, all of which offer
significant potential over the coming 18 months.
The Group received its share of the Disney litigation award on 4
June 2013. The cash received, after deductions for estimated tax
liabilities and indemnities was GBP45.6m, and after related bonuses
was GBP44.6m or $68.1m ("Net Receipt"), which was considerably in
excess of our previous estimates of $60m principally due to the
effects of post judgement interest and lower corporation tax
charges.
I am pleased to announce that the Board is proposing, subject to
shareholder approval, to return 69% (GBP30.6m) of this Net Receipt
to shareholders by way of a B & C Share Scheme ("The Scheme")
and to LTIP holders by way of a cash bonus. Under The Scheme, a
payment, equivalent to GBP1.10 per share, is planned to be paid to
shareholders while LTIP holders will receive a cash bonus of the
same amount in respect of the shares subject to LTIP awards. The
balance of the Net Receipt will be used to reduce Group debt.
The Scheme will be structured in such a way as to allow
shareholders, subject to applicable legal and regulatory
restrictions, to elect to receive their proceeds as income or
capital. A detailed circular setting out the full terms of The
Scheme and detailed timings will be sent to shareholders in the
autumn."
For further information please contact:
Avesco Group plc
Richard Murray, Chairman 01293 583400
John Christmas, Group Finance
Director
finnCap
Ed Frisby/Rose Herbert,
Corporate Finance
Brian Patient/Victoria
Bates, Corporate Broking 020 7220 0500
Chairman's Statement
In my statement in March 2013, I reported that the Group's
underlying trading was showing encouraging signs after a slow first
quarter. I am pleased to report on an improved performance in the
second quarter, although the outlook for the year as a whole has
become more challenging.
Results
Revenue in the three months ended 31 March 2013 rose 5% to
GBP35.7m (three months ended 31 March 2012: GBP33.9m) but this
increase was insufficient to fully offset the first quarter's 10%
revenue fall, leaving the total revenue for the six months to 31
March 2013 down 2% at GBP65.9m (six months ended 31 March 2012:
GBP67.5m). If the effect of major events in each of those periods
is excluded, the prior period comparisons show that the underlying
business on a like for like basis continued to make some progress,
with 10% growth in the quarter and 3% growth over the 6 month
period.
The US operations of our Creative Technology division were once
again the main driver behind the improved performance although our
Creative Technology business in China and our UK Full Service
business both contributed with pleasing revenue growth.
Operating profit for the three months ended 31 March 2013 grew
strongly to GBP2.9m (three months ended 31 March 2012: GBP2.0m) and
to GBP2.7m for the six months to the same date (six months ended 31
March 2012: GBP1.7m).
Trading profits (which exclude restructuring costs, compensation
for loss of office and other non-recurring costs) for the three
months ended 31 March 2013 and 2012 were in line with the operating
profits. The adjusted basic earnings per share showed similar
improvement and were 9.6p (three months ended 31 March 2012:
6.3p).
For the six months ended 31 March 2013 the trading profit
increased to GBP2.8m (six months ended 31 March 2012: GBP2.1m). The
adjusted basic earnings per share were 7.5p (three months ended 31
March 2012: 5.1p).
Due to the availability of trading losses in certain
territories, our current tax charge remains low. However our
continued profitability means that these historic losses are being
utilised and as a result there has been an increase in our total
tax charge for the six months ended 31 March 2013 to GBP0.7m (six
months ended 31 March 2012: GBP0.1m), although the increase relates
almost entirely to deferred tax rather than current tax.
We continue to spend significantly less on new equipment than
last year, with net investments in fixed assets during the first
half year of GBP9.9m (6 months ended 31 March 2012: GBP18.6m).
Although net debt increased by GBP2.3m during the quarter to
GBP30.0m, we expect to see a reduction by the year end as a result
of underlying trading.
On 31 March 2013, the net assets of the Group were GBP39.6m (31
March 2012: GBP38.0m) or GBP1.53 per share (31 March 2012: GBP1.46
per share).
We are maintaining the interim dividend at 1.0p per share in
line with last year. This payment will be made on 1 October 2013 to
shareholders on the register on 6 September 2013. The shares will
be quoted ex dividend from 4 September 2013.
Disney
The Group has previously announced that the Ninth Circuit Court
of Appeals had issued its order returning the Disney court case to
the trial court, an act which had the legal effect of making the
judgement collectible by Celador International Ltd ("Celador"), and
that the Group received its share of the award on 4 June 2013.
The cash received, after deductions for estimated tax
liabilities and indemnities was GBP45.6m, and after related bonuses
was GBP44.6m or $68.1m ("Net Receipt"), which was considerably in
excess of our previous estimates of $60m principally due to the
effects of post judgement interest and lower corporation tax
charges.
I am pleased to announce that the Board is proposing, subject to
shareholder approval, to return 69% (GBP30.6m) of this Net Receipt
to shareholders by way of a B & C Share Scheme ("The Scheme")
and to LTIP holders by way of a cash bonus. The Scheme will provide
for a payment, equivalent to GBP1.10 for each ordinary share, and
will be structured in such a way as to allow shareholders, subject
to applicable legal and regulatory restrictions, to elect to
receive their proceeds as income or capital. A detailed circular
setting out the full terms of The Scheme and detailed timings will
be sent to shareholders in the autumn.
Our business has been built on the quality and expertise of our
people and the Board is keen to ensure that LTIP holders are not
disadvantaged by The Scheme. Therefore, it is proposed that LTIP
holders will receive a cash bonus of GBP1.10 for each ordinary
share the subject of an LTIP award.
As a result, shareholders are expected to receive payments of
GBP28.5m in total and LTIP holders cash bonuses of GBP2.1m in
total. Payments to LTIP holders and bonuses will be excluded from
Trading Profit, as defined in note 3. The balance of the Net
Receipt will be used to reduce Group debt.
Outlook
Whilst the results for the quarter ended 31 March 2013 showed an
improvement on the previous quarter, our markets remain difficult
with competitive pricing pressures and limited visibility. The
post-Olympic pick-up in demand in the UK has been much slower than
anticipated, particularly at the large event end of the market. Our
businesses in Germany have also suffered from difficult market
conditions and the departure of some key staff, whilst the
consequent management restructuring will necessitate some
additional costs. Therefore, as announced on 4 June 2013, we now
believe that it is likely that our results for the full year to 30
September 2013 will be below previous market expectations.
As an even year, 2014 sees a return to a run of major sporting
events around the world, including the Winter Olympics in Russia,
the Commonwealth Games in Scotland and the FIFA World Cup in
Brazil. The additional potential revenue that can be derived from
these events is expected to have a beneficial effect on our
results.
Whilst we remain committed to our strategy of developing our
core business to provide cash generation and dividend growth, the
post balance sheet receipt of the Disney funds has temporarily
eliminated our net debt. Even after the return of the majority of
this gain to shareholders, our gearing will be low, leaving the
Group well placed for the future.
Unaudited condensed consolidated income statement
For the three months and six months ended 31 March 2013
Year
Three months Six months ended
ended 31 March ended 31 March 30 September
2013 2012 2013 2012 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
-------------------- ---------------------- ---------------------- --------- --------------------- --------------
Continuing
operations
Revenue 35,733 33,912 65,878 67,462 143,452
Cost of sales (21,881) (21,181) (41,439) (43,874) (93,246)
-------------------- ---------------------- ---------------------- --------- --------------------- --------------
Gross profit 13,852 12,731 24,439 23,588 50,206
Operating expenses (10,949) (10,707) (21,673) (21,848) (45,979)
Share of
associate's
(loss)/profit (25) - (40) - 271
-------------------- ---------------------- ---------------------- --------- --------------------- --------------
Operating profit 2,878 2,024 2,726 1,740 4,498
Finance income - - 1 2 51
Finance costs (400) (375) (812) (699) (1,586)
-------------------- ---------------------- ---------------------- --------- --------------------- --------------
Profit before
income
tax 2,478 1,649 1,915 1,043 2,963
Income tax expense (683) (50) (684) (102) (1,108)
-------------------- ---------------------- ---------
Profit for the
financial
period 1,795 1,599 1,231 941 1,855
-------------------- ---------------------- ---------------------- --------- --------------------- --------------
Pence Pence
Pence Pence per per Pence
per share per share share share per share
Earnings per share
for profit
attributable
to the equity
holders
of the company
- basic 7.0p 6.3p 4.8p 3.7p 7.3p
- diluted 6.5p 6.0p 4.5p 3.5p 7.0p
Alternative performance measures (non-GAAP)
For the three months and six months ended 31 March 2013
Year
ended
Three months Six months 30
ended 31 March ended 31 March September
2013 2012 2013 2012 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
--------------- ------------------------- ------------------------ ------------------------ ------------------------ ----------
Operating
profit 2,878 2,024 2,726 1,740 4,498
Adjusted to
exclude:
Restructuring
costs
and
compensation
for loss of
office 44 - 61 - 2,458
Other
non-recurring
costs - - - 350 428
Trading profit 2,922 2,024 2,787 2,090 7,384
Net finance
costs (400) (375) (811) (697) (1,535)
Trading profit
after
net finance
costs 2,522 1,649 1,976 1,393 5,849
--------------- ------------------------- ------------------------ ------------------------ ------------------------ ----------
Current tax
expense (43) (50) (44) (102) (346)
Trading profit
after
net finance
costs
and current
tax
expense 2,479 1,599 1,932 1,291 5,503
--------------- ------------------------- ------------------------ ------------------------ ------------------------ ----------
Trading EBITDA 7,450 6,888 11,778 11,620 27,147
--------------- ------------------------- ------------------------ ------------------------ ------------------------ ----------
Adjusted
earnings Pence Pence Pence Pence Pence
per share per share per share per share per share per share
--------------- ------------------------- ------------------------ ------------------------ ------------------------ ----------
- basic 9.6p 6.3p 7.5p 5.1p 21.7p
- diluted 9.0p 6.0p 7.0p 4.9p 20.8p
Refer to note 3 for a full description of the alternative
performance measures adopted by the Group.
Unaudited condensed consolidated statement of comprehensive
income
For the three months and six months ended 31 March 2013
Year
Three months Six months ended
ended 31 March ended 31 March 30 September
2013 2012 2013 2012 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------------ -------- -------- -------- -------- --------------
Profit for the period 1,795 1,599 1,231 941 1,855
Other comprehensive
income/(expense)
Currency translation
differences 528 (109) 520 (235) (143)
Total comprehensive
income for the period 2,323 1,490 1,751 706 1,712
------------------------ -------- -------- -------- -------- --------------
Unaudited condensed consolidated balance sheet
As at 31 March 2013
31 March 31 March 30 September
2013 2012 2012
GBP000s GBP000s GBP000s
-------------------------------- --------- ----------------------------- -------------
Assets
Non-current assets
Property, plant and
equipment 63,308 62,630 61,786
Intangible assets 138 150 130
Investment in associate 231 - 271
Deferred income tax
assets 6,091 6,100 6,707
Trade and other receivables 210 141 159
-------------------------------- --------- ----------------------------- -------------
69,978 69,021 69,053
Current assets
Inventories 1,476 1,654 1,794
Trade and other receivables 27,720 29,550 26,573
Current income tax assets 131 150 86
Cash and cash equivalents 5,692 6,704 4,345
35,019 38,058 32,798
-------------------------------- --------- ----------------------------- -------------
Total assets 104,997 107,079 101,851
-------------------------------- --------- ----------------------------- -------------
Liabilities
Non-current liabilities
Borrowings and loans 27,659 24,051 21,662
Deferred income tax
liabilities 4,434 3,041 4,425
Provisions for other
liabilities and charges 513 485 432
-------------------------------- --------- ----------------------------- -------------
32,606 27,577 26,519
Current liabilities
Trade and other payables 24,278 33,875 28,540
Current income tax liabilities 492 594 544
Borrowings and loans 8,027 6,930 7,448
Provisions for other
liabilities and charges 11 41 189
--------------------------------
32,808 41,440 36,721
-------------------------------- --------- ----------------------------- -------------
Total liabilities 65,414 69,017 63,240
-------------------------------- --------- ----------------------------- -------------
Total assets less total
liabilities 39,583 38,062 38,611
-------------------------------- --------- ----------------------------- -------------
Equity
Capital and reserves
attributable to equity
holders of the company
Ordinary shares 2,650 2,599 2,599
Share premium 23,286 23,286 23,286
Other reserves 493 (119) (27)
Retained earnings 13,154 12,296 12,753
-------------------------------- --------- ----------------------------- -------------
Total equity 39,583 38,062 38,611
-------------------------------- --------- ----------------------------- -------------
Unaudited condensed consolidated statement of changes in
equity
For the three months and six months ended 31 March 2013
Share capital Share premium
account account Other reserves Retained earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Balance at 1
January 2013 2,599 23,286 (35) 12,070 37,920
Profit for the
period - - - 1,795 1,795
Other comprehensive
income net of tax - - 528 - 528
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Total comprehensive
income - - 528 1,795 2,323
Transactions with
owners in their
capacity as owners:
External dividends
paid - - - (778) (778)
LTIP and share
options 51 - - 67 118
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Balance at 31 March
2013 2,650 23,286 493 13,154 39,583
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Share capital Share premium
account account Other reserves Retained earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Balance at 1
October 2012 2,599 23,286 (27) 12,753 38,611
Profit for the
period - - - 1,231 1,231
Other comprehensive
income net of tax - - 520 - 520
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Total comprehensive
income - - 520 1,231 1,751
Transactions with
owners in their
capacity as owners:
External dividends
paid - - - (1,032) (1,032)
LTIP and share
options 51 - - 202 253
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Balance at 31 March
2013 2,650 23,286 493 13,154 39,583
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Share capital Share premium
account account Other reserves Retained earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Balance at 1
January 2012 2,599 23,286 (10) 10,567 36,442
Profit for the
period - - - 1,599 1,599
Other comprehensive
expense net of tax - - (109) - (109)
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Total comprehensive
(expense)/income - - (109) 1,599 1,490
Transactions with
owners in their
capacity as owners:
LTIP and share
options - - - 130 130
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Balance at 31 March
2012 2,599 23,286 (119) 12,296 38,062
-------------------- ------------------- -------------------- ---------------- ------------------ ---------------
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Balance at 1 October
2011 2,599 23,286 116 11,072 37,073
Profit for the
period - - - 941 941
Other comprehensive
expense net of
tax - - (235) - (235)
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Total comprehensive
(expense)/income - - (235) 941 706
Transactions with
owners in their
capacity as owners:
LTIP and share
options - - - 283 283
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Balance at 31 March
2012 2,599 23,286 (119) 12,296 38,062
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Balance at 1 October
2011 2,599 23,286 116 11,072 37,073
Profit for the
period - - - 1,855 1,855
Other comprehensive
expense net of
tax - - (143) - (143)
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Total comprehensive
(expense)/income - - (143) 1,855 1,712
Transactions with
owners in their
capacity as owners:
External dividends
paid - - - (761) (761)
LTIP and share
options - - - 587 587
Balance at 30 September
2012 2,599 23,286 (27) 12,753 38,611
------------------------- ---------------- ---------------- ---------------- ---------------- --------
Unaudited condensed consolidated cash flow statement
For the three months and six months ended 31 March 2013
Year
Three months Six months ended
ended 31 March ended 31 March 30 September
2013 2012 2013 2012 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
--------------------- ---------------------- ---------------------- --------------------- --------------------- ---------------------
Cash flows from
operating
activities
Cash generated from
operations 2,481 6,634 6,960 6,952 19,715
Net interest paid (394) (353) (857) (722) (1,517)
Income tax paid (68) (109) (137) (231) (466)
Net cash generated
from operating
activities 2,019 6,172 5,966 5,999 17,732
--------------------- ---------------------- ---------------------- --------------------- --------------------- ---------------------
Cash flows from
investing
activities
Purchases of
property,
plant and equipment (3,937) (8,764) (11,196) (19,758) (32,539)
Proceeds from sale
of property, plant
and equipment 290 695 1,331 1,123 1,831
Proceeds from
disposal
of investments - 43 - 403 403
Net cash used in
investing
activities (3,647) (8,026) (9,865) (18,232) (30,305)
--------------------- ---------------------- ---------------------- --------------------- --------------------- ---------------------
Cash flows from
financing
activities
Proceeds from
borrowings 2,702 3,803 9,799 13,849 18,128
Repayments of
borrowings (2,317) (769) (4,371) (2,360) (8,258)
Dividends paid to
Company's
shareholders - - (254) - (761)
---------------------
Net cash generated
in financing
activities 385 3,034 5,174 11,489 9,109
--------------------- ---------------------- ---------------------- --------------------- --------------------- ---------------------
Cash used from
discontinued
operations - (54) (62) (245) (247)
--------------------- ---------------------- ---------------------- --------------------- --------------------- ---------------------
Net
(decrease)/increase
in cash, cash
equivalents
and bank overdrafts (1,243) 1,126 1,213 (989) (3,711)
Cash, cash
equivalents
and bank overdrafts
at beginning of
period 6,337 5,359 4,116 7,501 7,501
Exchange
(losses)/gains
on cash and bank
overdrafts 190 67 (45) 40 326
Cash, cash
equivalents
and bank overdrafts
at end of period 5,284 6,552 5,284 6,552 4,116
Bank overdrafts at
end of period 408 152 408 152 229
Cash, cash
equivalents
at end of period 5,692 6,704 5,692 6,704 4,345
--------------------- ---------------------- ---------------------- --------------------- --------------------- ---------------------
Notes to the interim report and accounts
1. General information
Avesco Group plc ('the Company') and its subsidiaries (together
'the Group') is an international media services business. The Group
has subsidiaries around the world and sells in the UK, USA, Europe,
Asia Pacific and the Middle East.
The Company is a public limited company which is admitted to
trading on the AIM Market of the London Stock Exchange and is
incorporated and domiciled in the UK. The address of its registered
office is Unit E2, Sussex Manor Business Park, Gatwick Road,
Crawley, West Sussex, RH10 9NH.
The registered number of the Company is 01788363.
2. Status of interim report and accounts
The interim report and accounts are unaudited but have been
reviewed by the auditors, Ernst & Young LLP, and their
independent review report is appended to this document. The interim
report and accounts, which were approved by the Board of Directors
on 13 June 2013, are not full accounts within the meaning of
section 434 of the Companies Act 2006.
The figures for the year ended 30 September 2012 have been
extracted from the audited annual report and accounts that have
been delivered to the Registrar of Companies. The auditors, Ernst
& Young LLP, reported on those accounts under section 495 of
the Companies Act 2006. Their report was unqualified and did not
contain a statement under section 498 of that Act.
3. Basis of preparation
The interim report and accounts have been prepared using the
accounting policies to be applied in the annual report and accounts
for the year ending 30 September 2013. These are consistent with
those included in the previously published annual report and
accounts for the year ended 30 September 2012, which have been
prepared in accordance with IFRS as adopted by the European
Union.
The directors have a reasonable expectation that the Group has
adequate resources to continue operating for the foreseeable
future, and for this reason they have adopted the going concern
basis of preparation in the consolidated quarterly financial
statements.
Alternative performance measures
The Group uses alternative non-Generally Accepted Accounting
Practice ("non-GAAP") financial measures which are not defined
within IFRS. The Directors use these measures in order to assess
the underlying operational performance of the Group and as such,
these measures are important and should be considered alongside the
IFRS measures. The following non-GAAP measures are referred to in
these interim report and accounts.
a) Trading profit/loss
'Trading profit/loss' is separately disclosed, being defined as
operating profit adjusted to exclude restructuring costs and
compensation for loss of office and other non-recurring costs.
Other non-recurring costs relate to items which management believe
do not accurately reflect the underlying trading performance of the
business in the period. Examples of other non-recurring costs are
profit/loss on disposal of investments and one off consultancy and
legal costs incurred which management believe do not accurately
reflect the trading performance of the business. The Directors
believe that trading profit/loss is an important measure of the
underlying performance of the Group.
b) Adjusted earnings per share
'Adjusted earnings per share' is calculated by dividing the
profit for the period excluding restructuring costs and
compensation for loss of office, other non-recurring costs and the
deferred tax charge/credit by the weighted average number of
ordinary shares in issue during the period. The Directors believe
that adjusted earnings per share provides an important measure of
the underlying performance of the Group.
c) Trading EBITDA
Trading earnings before interest, taxation, depreciation and
amortisation ('EBITDA') is separately disclosed, being defined as
trading profit/loss adjusted to exclude depreciation and
amortisation of software. The Directors believe that trading EBITDA
is an important measure of the underlying performance of the
Group.
4. Segmental information
Year
Three months Six months ended 30
ended 31 March ended 31 March September
2013 2012 2013 2012 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
--------------- --------------------- ------------------------ ----------------------- ------------------------ ----------
Revenue
Creative
Technology 27,241 23,661 46,223 46,091 96,232
Full Service 4,804 5,234 9,623 10,431 19,988
Broadcast 4,452 5,849 11,639 12,700 29,653
Inter Segment
revenue (764) (832) (1,607) (1,760) (2,421)
--------------- ------------------------ ----------
Group revenue 35,733 33,912 65,878 67,462 143,452
--------------- --------------------- ------------------------ ----------------------- ------------------------ ----------
Operating
profit
Creative
Technology 3,485 2,524 3,046 2,371 4,526
Full Service 114 341 442 632 1,055
Broadcast (866) (729) (723) (804) 2,293
Head Office 189 (112) 22 (109) (490)
--------------- ------------------------ ----------
Trading profit 2,922 2,024 2,787 2,090 7,384
Restructuring
costs and
compensation
for loss of
office (44) - (61) - (2,458)
Other
non-recurring
costs - - - (350) (428)
Operating
profit 2,878 2,024 2,726 1,740 4,498
--------------- --------------------- ------------------------ ----------------------- ------------------------ ----------
5. Trading earnings before interest, taxation, depreciation and amortisation ('EBITDA')
Year
Three months Six months ended
ended 31 March ended 31 March 30 September
2013 2012 2013 2012 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
-------------------------- -------- -------- -------- -------- --------------
Trading profit 2,922 2,024 2,787 2,090 7,384
Depreciation 4,504 4,832 8,944 9,463 19,645
Amortisation of software 24 32 47 67 118
Trading EBITDA 7,450 6,888 11,778 11,620 27,147
-------------------------- -------- -------- -------- -------- --------------
Trading EBITDA is defined in note 3.
6. Taxation
Year
Three months Six months ended
ended 31 March ended 31 March 30 September
2013 2012 2013 2012 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------------ -------- --------------------- -------- ------------------- --------------
Current tax:
Current tax on profits
for the year 43 50 44 102 358
Adjustments in respect
of prior periods - - - - (12)
------------------------ -------- --------------------- -------- ------------------- --------------
Total current tax 43 50 44 102 346
Deferred tax 640 - 640 - 762
------------------------ -------- --------------------- -------- ------------------- --------------
Income tax expense 683 50 684 102 1,108
------------------------ -------- --------------------- -------- ------------------- --------------
7. Earnings per share
Year
Three months Six months ended
ended 31 March ended 31 March 30 September
2013 2012 2013 2012 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------ ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Profit for the
financial
period 1,795 1,599 1,231 941 1,855
Restructuring
costs
and compensation
for
loss of office 44 - 61 - 2,458
Other
non-recurring
costs - - - 350 428
Deferred tax
charge 640 - 640 - 762
Trading profit
after
net finance
costs and
income tax
expense 2,479 1,599 1,932 1,291 5,503
------------------ ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Weighted average
number
of shares (net of
treasury
shares)
For basic
earnings
per share
(000's) 25,776 25,372 25,609 25,372 25,393
Effect of
dilutive
share options
(000's) 1,861 1,190 2,028 1,190 1,020
For diluted
earnings
per share
(000's) 27,637 26,562 27,637 26,562 26,413
------------------ ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Earnings per
share
Basic 7.0p 6.3p 4.8p 3.7p 7.3p
Diluted 6.5p 6.0p 4.5p 3.5p 7.0p
------------------ ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Adjusted basic 9.6p 6.3p 7.5p 5.1p 21.7p
Adjusted diluted 9.0p 6.0p 7.0p 4.9p 20.8p
------------------ ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Basic earnings per share have been calculated by dividing
profit/loss for the period by the weighted average number of
ordinary shares in issue during the period.
Diluted earnings per share have been calculated by dividing
profit/loss for the period by the weighted average number of
ordinary shares in issue during the period, adjusted for any awards
under the Company's Long Term Incentive Plan ("LTIP") where
pre-specified performance conditions have been satisfied and any
required conversion of dilutive potential options.
Adjusted earnings per share have been calculated as per note
3.
8. Analysis of net debt
Other At
At non Currency 31
1 January Cash cash translation March
2013 flow changes differences 2013
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ----------- -------- ---------------- ------------- ---------
Cash at bank
and in hand 6,586 (1,094) - (200 5,692
Bank overdrafts (249) (149) - (10) (408)
----------------- ----------- -------- ---------------- ------------- ---------
Net cash 6,337 (1,243) - 190 5,284
Bank loans
due in more
than one year (17,711) (1,031) - (358) (19,100)
Hire purchase
obligations
due in less
than one year (7,731) 1,729 (1,369) (248) (7,619)
Hire purchase
obligations
due in more
than one year (8,566) (1,083) 1,369 (279) (8,559)
Net debt (27,671) (1,628) - (695) (29,994)
----------------- ----------- -------- ---------------- ------------- ---------
Other At
At non Currency 31
1 October Cash cash translation March
2012 flow changes differences 2013
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ----------- -------- ---------------- ------------- ---------
Cash at bank
and in hand 4,345 1,376 - (29) 5,692
Bank overdrafts (229) (163) - (16) (408)
----------------- ----------- -------- ---------------- ------------- ---------
Net cash 4,116 1,213 - (45) 5,284
Bank loans
due in more
than one year (13,645) (5,053) - (402) (19,100)
Hire purchase
obligations
due in less
than one year (7,219) 2,773 (2,907) (266) (7,619)
Hire purchase
obligations
due in more
than one year (8,017) (3,148) 2,907 (301) (8,559)
Net debt (24,765) (4,215) - (1,014) (29,994)
----------------- ----------- -------- ---------------- ------------- ---------
Other At
At non Currency 31
1 January Cash cash translation March
2012 flow changes differences 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ----------- -------- ---------------- ------------- ---------
Cash at bank
and in hand 5,504 1,135 - 65 6,704
Bank overdrafts (145) (9) - 2 (152)
----------------- ----------- -------- ---------------- ------------- ---------
Net cash 5,359 1,126 - 67 6,552
Bank loans
due in more
than one year (17,932) 1,000 - 79 (16,853)
Finance lease
obligations
due in less
than one year (5,585) (60) (1,216) 83 (6,778)
Finance lease
obligations
due in more
than one year (4,512) (3,974) 1,216 72 (7,198)
Net debt (22,670) (1,908) - 301 (24,277)
----------------- ----------- -------- ---------------- ------------- ---------
Other At
At non Currency 31
1 October Cash cash translation March
2011 flow changes differences 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ---------------- --------- ---------------- ------------- -----------
Cash at bank
and in hand 7,501 (835) - 38 6,704
Bank overdrafts - (154) - 2 (152)
----------------- ---------------- --------- ---------------- ------------- -----------
Net cash 7,501 (989) - 40 6,552
Bank loans
due in more
than one year (10,020) (7,000) - 167 (16,853)
Finance lease
obligations
due in less
than one year (5,483) 857 (2,219) 67 (6,778)
Finance lease
obligations
due in more
than one year (4,137) (5,346) 2,219 66 (7,198)
Net debt (12,139) (12,478) - 340 (24,277)
----------------- ---------------- --------- ---------------- ------------- -----------
Other At
At non Currency 30
1 October Cash cash translation September
2011 flow changes differences 2012
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- ---------------- --------- ---------------- ------------- -----------
Cash at bank
and in hand 7,501 (3,484) - 328 4,345
Bank overdrafts - (227) - (2) (229)
----------------- ---------------- --------- ---------------- ------------- -----------
Net cash 7,501 (3,711) - 326 4,116
Bank loans
due in more
than one year (10,020) (4,000) - 375 (13,645)
Hire purchase
obligations
due in less
than one year (5,483) 3,549 (5,405) 120 (7,219)
Hire purchase
obligations
due in more
than one year (4,137) (9,419) 5,405 134 (8,017)
-----------
Net debt (12,139) (13,581) - 955 (24,765)
----------------- ---------------- --------- ---------------- ------------- -----------
9. Interim and final dividends
A final dividend for the year ended 30 September 2012 of 3.0p
per share amounting to a total of GBP778,000 was approved and was
paid on 8 April 2013 to shareholders on the register at 6.00pm on
15 March 2013.
An interim dividend for the year ended 30 September 2012 of 1.0p
per share amounting to a total of GBP254,000 was approved and was
paid on 1 October 2012 to shareholders on the Register at 6.00pm on
14 September 2012.
An interim dividend of 1.0p per share will be paid on 1 October
2013 to shareholders on the Register at 6.00pm on 6 September 2013.
The shares will be quoted ex dividend from 4 September 2013.
10. Contingent liabilities and assets
Contingent liabilities
InvestinMedia Holdings Limited ("InvestinMedia"), a subsidiary
of the Company, sold its investment in Complete Communications
Corporation Limited ("Complete") on 20 December 2006. In connection
with the sale, InvestinMedia and other vendors gave certain
warranties and indemnities to the buyer, in respect of which the
period for notification of claims runs for periods of up to seven
years from the date of completion. So far as the Company is aware,
no legal claims have been brought against any company in the
Complete group that are outstanding and would give rise to
liability on the part of InvestinMedia and other vendors under the
warranties and indemnities.
Contingent assets
As announced on 4 June 2013 the Group has received its share of
the Disney litigation award. Cash received was GBP50.6m although
this is reduced by estimated tax liabilities of GBP4.1m and
indemnities of GBP1.0m to GBP45.6m. Further provision will be also
be made in the accounts for returns to LTIP holders of GBP2.1m and
related bonuses of GBP1.0m. No credit has been taken in these
accounts to reflect this verdict as the appeal process had not
concluded prior to 31 March 2013. The Group has announced plans to
distribute a further GBP28.5m (the equivalent of GBP1.10 per share)
by way of a B & C Share Scheme subject to shareholder
approval.
11. Distribution of interim report and accounts
Copies of this interim report and accounts are available from
the Company's web site (www.avesco.com) or from the Company's
registered office: Avesco Group plc, Unit E2, Sussex Manor Business
Park, Gatwick Road, Crawley,
West Sussex, RH10 9NH. Telephone: +44 (0) 1293 583 400. Fax: +44 (0) 1293 583 410. E-mail: mail@avesco.com.
INDEPENDENT REVIEW REPORT TO AVESCO GROUP PLC
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the Interim Report and Accounts for the
three and six months ended 31 March 2013, which comprises the
consolidated income statement, consolidated statement of
comprehensive income, consolidated balance sheet, consolidated
statement of changes in equity and consolidated cash flow statement
and the related explanatory notes that have been reviewed. We have
read the other information contained in the Interim Report and
Accounts and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the Company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK and Ireland) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the
Company, for our work, for this report, or for the conclusions we
have formed.
Directors' Responsibilities
The Interim Report and Accounts is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the Interim Report and Accounts in accordance with
the AIM Rules issued by the London Stock Exchange which require
that it is presented and prepared in a form consistent with that
which will be adopted in the Company's annual accounts having
regard to the accounting standards applicable to such annual
accounts.
As disclosed in note 3, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this Interim Report and Accounts has been prepared in accordance
with the AIM Rules issued by the London Stock Exchange.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the Interim Report and
Accounts based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the Interim Report and Accounts for the three and six months
ended 31 March 2013 is not prepared, in all material respects, in
accordance with the accounting policies outlined in Note 3, which
comply with IFRS's as adopted by the European Union and in
accordance with the AIM Rules issued by the London Stock
Exchange.
Ernst & Young LLP
Reading
13 June 2013
This information is provided by RNS
The company news service from the London Stock Exchange
END
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Avesco (LSE:AVS)
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Avesco (LSE:AVS)
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から 1 2024 まで 1 2025
