Part 2 : For preceding part double click [nRn1Y3284E]
£'000 £'000 £'000 Discontinued operations
Other £'000 Group
£'000 £'000
Assets 14,040 7,006 (826) 20,220 6,010 26,230
Current tax assets 408
Deferred tax assets 1,742
28,380
Liabilities 9,927 4,666 1,475 16,068 4,716 20,784
Borrowings (excluding finance leases) 1,505
22,289
Capital expenditure 583 209 - 792 1,271 2,063
The segment assets and liabilities at 30 June 2007 and capital expenditure for
the period then ended are as follows:
Professional Business Services Stock and Inventory Services Total continuing operations
£'000 £'000 £'000 Discontinued operations
Other £'000 Group
£'000 £'000
Assets 20,083 6,153 285 26,521 11,475 37,996
Deferred tax assets 1,894
39,890
Liabilities 13,229 4,278 1,151 18,658 3,951 22,609
Current tax liabilities 740
Borrowings (excluding finance leases) 2,071
25,420
Capital expenditure 90 187 - 277 889 1,166
The segment assets and liabilities at 31 December 2007 and capital expenditure
for the period then ended are as follows:
Professional Business Services Stock and Inventory Services Total continuing operations
£'000 £'000 £'000 Discontinued operations
Other £'000 Group
£'000 £'000
Assets 10,614 6,040 7,808 24,462 11,618 36,080
Deferred tax assets 2,664
38,744
Liabilities 9,669 3,526 2,749 15,944 4,401 20,345
Current tax liabilities 700
Borrowings (excluding finance leases) 1,735
22,780
Capital expenditure 277 343 2 622 2,676 3,298
b. Secondary format - geographical segments
The Group manages its business segments on a global basis. The UK is the home
country of the parent. The operations are based mainly in Europe.
The Group's sales are mainly in Europe. Sales are allocated based on the country
in which the customer is located.
30 June 2008 30 June 2007 31 December 2007
Discontinued Discontinued Discontinued
Continuing operations operations Continuing operations operation Continuing operations operations
£'000 £'000 £'000 £'000 £'000 £'000
Sales
Europe 35,665 7,604 38,770 7,066 74,473 12,625
Rest of the World - 73 - 267 - 274
35,665 7,677 38,770 7,333 74,473 12,899
Total segment assets are allocated based on where the assets are located.
30 June 2008 30 June 2007 31 December 2007
Discontinued Discontinued Discontinued
Continuing operations operations Continuing operations operation Continuing operations operations
£'000 £'000 £'000 £'000 £'000 £'000
Total assets
Europe 20,220 5,912 26,521 11,321 24,462 11,527
Rest of the World - 98 - 154 - 91
20,220 6,010 26,521 11,475 24,462 11,618
Capital expenditure is allocated based on where the assets are located.
30 June 2008 30 June 2007 31 December 2007
Discontinued Discontinued Discontinued
Continuing operations operations Continuing operations operation Continuing operations operations
£'000 £'000 £'000 £'000 £'000 £'000
Capital expenditure
Europe 792 1,271 277 889 622 2,675
Rest of the World - - - - - 1
792 1,271 277 889 622 2,676
5. Taxation
There is no tax charge arising on the results for the six months ending 30 June
2008. The tax charge for the six months ended 30 June 2007 was based on an
underlying tax rate (current year corporation and deferred tax as a percentage
of pre tax profit) of 37.2% (Year ended 31 December 2007: 35.5%), which includes
the movement in deferred tax asset relating to Retirement Benefit obligations.
6. Discontinued operations
The results of the discontinued operations are summarised below:
Half year to 30 June 2008 Half year to 30 June 2007 Year ended 31 December 2007
£'000 £'000 £'000
(Unaudited) (Unaudited)
Software Solutions division (2,430) (551) (2,913)
Fair value adjustment of Software division assets (8,328) - -
Christie Corporate Finance (139) (270) (340)
Loss for the period after tax (10,897) (821) (3,253)
6a. Software Solutions Division
On 23 June the Group announced its intention to seek a strategic partner for its
Software Solutions division. From this date this segment has been classified as
a discontinued operation. On 17 September 2008 contracts were exchanged for the
disposal of its Retail Software business for a consideration of E4,000,000 cash
(£3,200,000 at the exchange rate expected to prevail on completion) and its
results are presented in these interim consolidated financial statements as a
discontinued operation. Associated costs relating to the disposal are
anticipated to amount to £1,400,000.
The results for the Software Solutions division are presented below:
Half year to 30 June Half year to 30 June Year ended 31 December 2007
2008 2007 £'000
£'000 £'000
(Unaudited) (Unaudited)
Revenue 7,657 7,316 12,640
Employee benefit expenses (5,495) (4,634) (8,432)
2,162 2,682 4,208
Depreciation, amortisation and impairment (146) (110) (1,546)
Other operating expenses (4,447) (2,985) (5,595)
Operating loss (2,431) (413) (2,933)
Total finance costs 1 (261) (631)
Loss before tax (2,430) (674) (3,564)
Taxation - 123 651
Loss for the period after tax (2,430) (551) (2,913)
The net cash flows after tax of this discontinued operation are as follows:
Half year to 30 June Half year to 30 June Year ended 31 December 2007
2008 2007 £'000
£'000 £'000
(Unaudited) (Unaudited)
Operating activities 1,652 1,186 2,599
Investing activities (1,268) (1,005) (2,668)
Net cash outflow 384 181 (69)
On recognition of the assets and liabilities of the Software Solutions business
as a disposal group in accordance with IFRS 5 'Non-current Assets held for Sale
and Discontinued Operations', an adjustment to fair values was recognised. The
adjustment to the carrying value was £8,328,000 as follows:
Half year to 30 June
2008
£'000
(Unaudited)
Intangible assets - Goodwill 3,085
Intangible assets - Other 4,566
Deferred tax assets -
Current tax assets 677
8,328
IFRS 5 requires that the total assets and total liabilities of discontinued
operations are each shown separately and excluded from the individual lines of
the balance sheet. However no re-presentation of the prior period is required
and the assets and liabilities are included in the individual line items.
At 30 June 2008
£'000
(Unaudited)
Assets
Non-current assets
Intangible assets - Other 1,400
Property, plant and equipment 377
1,777
Current assets
Inventories 396
Trade and other receivables 3,098
Cash and cash equivalents 674
4,168
Assets of disposal group 5,945
Liabilities
Non-current liabilities
Retirement benefit obligations 58
Current liabilities
Trade and other payables 4,648
Liabilities of disposal group 4,706
6b. Christie Corporate Finance
On 1 August 2008 Christie Corporate Finance was closed. This was previously
included in the Professional Business Services segment. From this date it has
been classified as a discontinued operation.
The results for Christie Corporate Finance are presented below:
Half year to 30 June Half year to 30 June Year ended 31 December 2007
2008 2007 £'000
£'000 £'000
(Unaudited) (Unaudited)
Revenue 20 17 259
Employee benefit expenses (118) (200) (377)
(98) (183) (118)
Other operating expenses (41) (87) (222)
Operating loss (139) (270) (340)
Loss for the period after tax (139) (270) (340)
The net cash flows after tax of this discontinued operation are as follows:
Half year to 30 June Half year to 30 June Year ended 31 December 2007
2008 2007 £'000
£'000 £'000
(Unaudited) (Unaudited)
Operating activities 68 - -
Net cash outflow 68 - -
7. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary shares
in issue during the period, which excludes the shares
held in the Employee Share Ownership Plan (ESOP) trust.
30 June 2008£'000 30 June 2007£'000 31 December 2007£'000
Profit from continuing operations attributable to equity holders of the Company 914 3,403 7,901
(Loss)/profit from discontinued operations attributable to equity holders of the (10,897) (821) (3,253)
Company
(Loss)/profit from total operations attributable to equity holders of the Company (9,983) 2,582 4,648
30 June 2008Thousands 30 June 2007Thousands 31 December 2007Thousands
Weighted average number of ordinary shares in issue 24,472 24,277 24,310
Adjustment for share options 189 945 610
Weighted average number of ordinary shares for diluted 24,661 25,222 24,920
earnings per share
30 June 2008Pence 30 June 2007Pence 31 December 2007Pence
Basic earnings per share
Continuing operations 3.73 14.02 32.50
Discontinued operations (44.52) (3.38) (13.38)
Total operations (40.79) 10.64 19.12
Diluted earnings per share
Continuing operations 3.71 13.49 31.70
Discontinued operations (44.19) (3.25) (13.05)
Total operations (40.48) 10.24 18.65
Diluted earnings per share is calculated adjusting the weighted average number
of ordinary shares outstanding to assume conversion of all dilutive potential
ordinary shares. The Company has only one category of potential dilutive
ordinary shares: share options.
The calculation is performed for the share options to determine the number of
shares that could have been acquired at fair value (determined as the average
annual market share price of the Company's shares) based on the monetary value
of the subscription rights attached to outstanding share options. The number of
shares calculated as above is compared with the number of shares that would have
been issued assuming the exercise of the share options.
8. Dividends per share
30 June 2008£'000 30 June 2007£'000 31 December 2007£'000
Interim
2007 interim, paid October 2007 (1.50p) - - 362
Final
2006 final, paid July 2007 (2.75p) - - 668
2007 final, paid June 2008 (2.75p) 670 - -
670 - 1,030
An interim dividend in respect of 2008 of 0.5p per share (2007: 1.50p per
share), amounting to a dividend of £123,000 (2007: £362,000), was declared by
the directors at their meeting on 25 September 2008. These financial statements
do not reflect this dividend payable.
The dividend of 0.5p per share will be payable to shareholders on the record on
3 October 2008. The ex-dividend date will be 1 October 2008. The dividend will
be paid on 30 October 2008.
9. Share capital 30 June 2008 30 June 2007 31 December 2007
Ordinary shares of 2p each Number £'000 Number £'000 Number £'000
Authorised:At 1 January, 30 June and 31 December 30,000,000 600 30,000,000 600 30,000,000 600
Allotted and fully paid:
At 1 January 25,263,551 505 25,216,384 504 25,216,384 504
Issued during the period - - 47,167 1 47,167 1
End of period 25,263,551 505 25,263,551 505 25,263,551 505
The consideration received for the shares issued in the Half year to 30 June
2007 and Year ended 31 December 2007 was £34,000.
The Company has one class of ordinary shares which carry no right to fixed
income.
Investment in own shares
The Group has established an Employee Share Ownership Plan (ESOP) trust in order
to meet its future contingent obligations under the Group's share option
schemes. The ESOP purchases shares in the market for distribution at a later
date in accordance with the terms of the Group's share option schemes. The
rights to dividend on the shares held have been waived.
At 30 June 2008 the total payments by the Group to the ESOP to finance the
purchase of ordinary shares was £2,026,000 (30 June 2007: £2,004,000; 31
December 2007: £1,973,000). The market value at 30 June 2008 of the ordinary
shares held in the ESOP was £510,000 (30 June 2007: £2,291,000; 31 December
2007: £1,183,000). The investment in own shares represents 733,000 shares (30
June 2007: 1,058,000; 31 December 2007: 816,000) with a nominal value of 2p
each.
10. Retirement benefit obligations
The amounts recognised in the balance sheet in respect of the net pension
liability of continuing operations is determined as follows:
30 June 2008£'000 30 June 2007£'000 31 December 2007£'000
United Kingdom 3,916 5,742 4,293
Overseas - 65 50
3,916 5,807 4,343
United Kingdom
The Group operates two defined benefit schemes (closed to new members) providing
pensions on final pensionable pay. The contributions are determined by qualified
actuaries on the basis of triennial valuations using the projected unit method.
When a member retires, the pension and any spouse's pension is either secured by
an annuity contract or paid from the managed fund. Assets of the schemes are
reduced by the purchase price of any annuity purchase and the benefits no longer
regarded as liabilities of the scheme.
The amounts recognised in the income statement and the movement in the liability
recognised in the balance sheet have been based on the forecasted position for
the year to 31 December 2008 after adjusting for the actual contributions to be
paid in the period.
The amounts recognised in the income statement are as follows:
Half year to Half year to Year ended
30 June 2008 30 June 2007 31 December 2007
£'000 £'000 £'000
Current service cost (421) (471) (940)
Interest cost (977) (797) (1,622)
Expected return on plan assets 1,014 908 1,851
Total included in employee benefit expenses (384) (360) (711)
The movement in the liability recognised in the balance sheet is as follows:
Half year to Half year to Year ended
30 June 2008 30 June 2007 31 December 2007
£'000 £'000 £'000
Beginning of the period 4,293 6,240 6,240
Expenses included in employee benefit expenses 384 360 711
Contributions paid (761) (858) (2,658)
End of the period 3,916 5,742 4,293
The principal actuarial assumptions used were as follows:
Half year to 30 June 2008% Half year to 30 June 2007% Year ended 31 December 2007%
Discount rate 5.80 - 6.60 5.80 5.80
Inflation rate 3.50 3.50 3.50
Expected return on plan assets 6.20 - 7.25 6.20 - 7.60 6.20 - 7.60
Future salary increases 3.50 3.50 - 3.60 3.50 - 3.60
Assumptions regarding future mortality experience were consistent with those
disclosed in the financial statements for the year ended 31 December 2007.
11. Note to the cash flow statement
Cash generated from operations
Half year to Half year to Year to
30 June 2008 30 June 2007 31 December 2007
£'000 £'000 £'000
Continuing operations
Profit for the period 914 3,403 7,901
Adjustments for:
- Taxation - 1,867 3,218
- Finance credits (64) (368) (845)
- Depreciation 417 397 1,004
- Amortisation of intangible assets 14 136 23
- Profit on sale of property, plant and equipment (29) - -
- Loss on sale of intangible assets 17 - -
- Foreign currency translation 116 179 166
- Increase in provision for other liabilities and charges 176 - 295
- Movement in available-for-sale financial asset - - 9
- Movement in share option charge 60 66 120
- Movement in retirement benefit obligation (378) (497) (1,945)
- Increase in non-current other receivables (21) (969) -
Changes in working capital (excluding the effects of
acquisitions and exchange differences on consolidation):
- Decrease/(increase) in inventories 4 - (4)
- (Increase)/decrease in trade and other receivables (4,415) (9,348) 4,504
- (Decrease)/increase in trade and other payables (3,455) 4,890 (8,634)
Cash (used in)/generated from continuing operations (6,644) (244) 5,812
Discontinued operations
Loss for the period (10,897) (821) (3,253)
Adjustments for:
- Taxation - (123) (651)
- Finance (credits)/costs (1) 261 631
- Depreciation 95 108 213
- Amortisation and impairment of intangible assets 51 2 1,333
- Impairment of discontinued operations 8,328 - -
- Loss on sale of intangible asset - 9 10
- Foreign currency translation (46) 34 46
- Movement in share option charge - - 1
- Movement in retirement benefit obligation - 4 (12)
Changes in working capital (excluding the effects of
acquisitions and exchange differences on consolidation):
- Decrease/(increase) in inventories 4 25 (68)
- Decrease/(increase) in trade and other receivables 373 6,292 (3,473)
- Increase/(decrease) in trade and other payables 4,088 (5,051) 7,363
Cash generated from discontinued operations 1,995 740 2,140
Cash (used in)/generated from operations (4,649) 496 7,952
12. Post Balance Sheet Events
On 17 September 2008 contracts were exchanged for the disposal of the Group's
Retail Software business for a consideration of E4,000,000 cash. Further details
are set out in Note 6a.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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