TIDMIGR
RNS Number : 3968T
International Greetings PLC
06 December 2011
6(th) December 2011
International Greetings PLC ("the Company" or "the Group")
Interim Results
International Greetings PLC, one of the world's leading
designers, innovators and manufacturers of gift wrap, crackers,
cards, stationery and accessories, announces its interim results
for the six months ended 30 September 2011 (2011 H1).
Financial highlights
-- Sales up 6% to GBP110.3 million (2010 H1: GBP104.5 million)
-- Operating profit before exceptional costs up 38% to
GBP5.2 million (2010 H1: GBP3.8 million)
-- Profit before tax and exceptional items up 50% to GBP3.2
million (2010 H1: GBP2.1 million)
-- Profit from continuing operations before tax was level
at GBP2.1 million (2010 H1: GBP2.1 million) including
exceptional costs of GBP1.1 million (2010 H1: GBPnil)
-- Debt reduction programme remains on track
-- H1 seasonal working capital increase as expected - net
debt at 30 September 2011 GBP88.5 million (2010 H1:
GBP86.4 million)
Operational highlights
-- Continued focus on developing a more balanced business
-- Increasing innovation and cross-selling throughout the
Group's businesses continues to deliver improved results
-- Positive momentum sustained in the USA with opportunities
across all market segments
-- Relocation of our manufacturing facility in China is
on track
Paul Fineman, Chief Executive said:
"We have achieved sales and profit growth despite the
challenging market conditions and have continued to enjoy
significant business with value and mass market retailers across
the globe. This has included growth in Everyday greetings card
activities, which is an exciting new growth area for the Group.
Having completed the Christmas season manufacturing in China, we
have instigated our plans for the relocation of our facilities in
good time to meet future production deadlines whilst maintaining
our competitive position.
We have continued to benefit from streamlining processes
throughout the Group, including our Board structure. These measures
optimise our competitive position and increase our efficiency and
future ability to generate profit growth.
In these difficult trading markets around the world, we have
delivered results in line with our expectations in the first half,
which gives us optimism for the future. Significant opportunities
for International Greetings exist across the markets in which we
operate."
For further information, please contact:
International Greetings plc Tel: 01707 630617
Paul Fineman, Chief Executive
Anthony Lawrinson, Chief Financial
Officer
Arden Partners plc Tel: 020 7614 5917
Richard Day
Jamie Cameron
FTI Consulting Tel: 020 7831 3113
Jonathon Brill
Caroline Stewart
Georgina Bonham
Chief Executive's Review
Overview
We have achieved good progress in the first half of this year as
we have continued to deliver on our strategy of driving profitable
growth. Sales and profitability in the first half year have grown
in line with management's expectations.
Operational Review
Our key focus has been on ensuring that our major revenue
streams are delivered across a "balanced" portfolio of activity and
we continued to achieve this in the period.
Profits in the UK and Asia have grown through greater
collaboration between our manufacturing and sales operations.
Additionally we have driven synergies in sourcing, having utilised
the combined experience of our recently centralised team in the Far
East.
We are relocating our manufacturing facility in China having
completed Christmas season manufacturing requirements. This process
remains on track and the efficiency gains will offset forecast
inflationary pressures.
The first half has seen sales and profit meeting expectations in
our businesses in the Netherlands and Poland. This is particularly
pleasing given the challenging market conditions. However we
anticipate that adverse conditions will continue in the period
ahead and have planned accordingly.
Having re-established profitability in the USA, we are
encouraged that positive momentum has been sustained with
significant improvement in profitability on a growing sales base.
Performance in Australia has also been strong with sales and
profitability growing well.
A lot has been achieved through the business restructuring, and
this continues. Our achievement was recently acknowledged through
the Company being awarded Listed Company Turnaround 2011 Award by
the Institute for Turnarounds.
As recently announced, Martin Hornung will step down from the
Board during this month. The Board would like to take the
opportunity to thank Martin for many years of service across many
aspects of our business.
Financial Review
Revenue from continuing operations for the period increased by
6% to GBP110.3 million (2010 H1: GBP104.5 million). On a constant
exchange basis, like-for-like turnover increased by 5% over the
period, with growth across all geographic regions.
Despite significant inflationary pressures including rising raw
materials prices and Chinese-based labour costs, together with the
impact of the strengthening Chinese currency, we have achieved
encouraging gross profit margins of 19.1% (2010 H1: 18.3%).
At GBP16.2 million (2010 H1: GBP15.9 million), our overheads as
a percentage of sales continued to fall from 15.2% to 14.7%.
Operating profit before exceptional costs was up 38% to GBP5.2
million (2010 H1: GBP3.8 million) and profit before tax and
exceptional items was up 50% to GBP3.2 million (2010 H1: GBP2.1
million).
Exceptional items during the period were GBP1.1 million (2010
H1: GBPnil) relating to senior management restructuring and
provisions against leasehold assets in China in anticipation of our
impending factory relocation. In particular, the management
restructuring reflects synergies available at Board level as the
Group simplifies the management control of its operational
businesses in Asia, the UK and Europe. This is expected to generate
future annualised savings of GBP0.6 million.
Finance expenses in the period were GBP2.0 million (2010 H1:
GBP1.6 million) due to increased bank charges associated with the
refinancing and extension of the maturity of our facilities and
GBP0.2 million in respect of unrealised market movements on euro
denominated interest rate swaps, which are not hedge accounted. A
range of facilities are now available across UK, Europe, USA and
Australia, matched to the working capital and currency needs of our
respective businesses, with maturities on the majority of our core
non-seasonal debt extended out to 2015/16. Debt reduction remains a
key focus and our programme for this is on-track.
Net debt at 30 September 2011 was up 2% to GBP88.5 million (2010
H1: GBP86.4 million). With customer orders received earlier to
optimise efficiency and production accelerated in China ahead of
the move to our new factory, the usual seasonal working capital
increase was entirely as expected. Details of the Group's new
banking facilities are included in note 1 of the interim financial
statements.
Profit from continuing operations before tax was level at GBP2.1
million (2010 H1: GBP2.1 million), including exceptional items of
GBP1.1 million (2010: GBPnil).
The effective underlying tax rate was 27.5% (2010 H1: 6%) with
the prior period benefitting from recognition of deferred tax
assets. There are still tax losses of $15 million in the USA and
GBP1.7 million in the UK not recognised as assets in the balance
sheet.
Stated before exceptional items, and discontinued operations,
basic earnings per share were 3.4p (2010 H1: 3.1p), and 1.8p (2010
H1: 3.1p) after exceptional items. See note 6 of the interim
financial statements.
Capital expenditure in the six months was GBP1.4 million (2010
H1: GBP1.4 million). Our property asset held for resale was sold in
the period, generating GBP0.5 million which was used to pay down
debt.
Cash used by operations was GBP39.9 million (2010 H1: GBP34.7
million), which reflects the seasonality of the business as 59% of
the sales in the six month period occurred in the last two
months.
Debtors and receivables at GBP69.4 million are up 3% from
GBP67.5 million at H1 2010 and 2% on like-for-like exchange rates
with stock levels up by just 1% from GBP63.5 million (H1 2010) to
64.2 million (H1 2011) despite the sales increase of 6% and the
effect of early production against customer orders and the move of
our factory in China.
The Board will not be declaring an interim dividend and will
keep this policy under review (2010 H1: nil).
Current trading/outlook
Our focus on providing our customers with excellent service and
innovative products has enabled us to continue to enjoy profit
growth and success across the globe. We expect conditions to remain
challenging, particularly in Continental Europe, and we will manage
the business accordingly, with a strong focus on tight cost control
and continuing to drive further efficiencies throughout the
business.
The overall quality of our earnings continues to improve.
Notwithstanding difficult trading markets around the world, we have
delivered results in line with our expectations in the first half,
which gives us optimism for the future. Significant opportunities
for International Greetings exist across the markets in which we
operate.
Paul Fineman
Chief Executive
Consolidated income statement
six months ended 30 September 2011
Unaudited Unaudited
--------- ------------ ----------
six months six months
ended
ended 30 30 12 months
September September to March
2011 2011 2010 2011 2011 2010 2011
------------------------ --------- ------------ --------- ----------- ------------ --------------
Before Exceptional Before Exceptional
-----------
exceptional items exceptional items
(note (note
items 3) Total items 10) Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------------- ------------ --------- ----------- ------------ ------------ ----------
Continuing operations
Revenue 110,277 - 110,277 104,453 216,857 - 216,857
Cost of sales (89,194) - (89,194) (85,296) (179,108) (27) (179,135)
------------------------ --------- ------------ --------- ----------- ------------ ------------ ----------
Gross profit 21,083 - 21,083 19,157 37,749 (27) 37,722
19.1% - 19.1% 18.3% 17.4% - 17.4%
Selling expenses (6,451) - (6,451) (7,036) (12,698) (401) (13,099)
Administration
expenses (9,734) (1,080) (10,814) (8,844) (18,021) (472) (18,493)
Other operating
income 287 - 287 501 1,019 - 1,019
Profit on sales
of property,
plant and equipment 22 - 22 (1) 33 - 33
------------------------ --------- ------------ --------- ----------- ------------ ------------ ----------
Operating profit/(loss) 5,207 (1,080) 4,127 3,777 8,082 (900) 7,182
Finance expenses (1,994) - (1,994) (1,642) (2,917) - (2,917)
------------------------ --------- ------------ --------- ----------- ------------ ------------ ----------
Profit/(loss)
before tax 3,213 (1,080) 2,133 2,135 5,165 (900) 4,265
Income tax (charge)/
credit (884) 222 (662) (138) 426 267 693
------------------------ --------- ------------ --------- ----------- ------------ ------------ ----------
Profit/(loss) from continuing operations
Discontinued
operations 2,329 (858) 1,471 1,997 5,591 (633) 4,958
Loss from discontinued
operations (net
of tax) - - - (78) (100) - (100)
------------------------ --------- ------------ --------- ----------- ------------ ------------ ----------
Profit/(loss)
for the period 2,329 (858) 1,471 1,919 5,491 (633) 4,858
------------------------ --------- ------------ --------- ----------- ------------ ------------ ----------
Attributable to:
Owners of the
Parent Company 993 1,563 4,010
Non-controlling
interests 478 356 848
------------------------ ---------------------------------- ----------- --------------------------------------
Unaudited six Unaudited six 12 months to March
months ended 30 months ended 30 2011
September September
2011 2010
-------------------------- ------------------- ------------------- ---------------------
Earnings per ordinary
share Diluted Basic Diluted Basic Diluted Basic
---------- ------- ---------- ------- ----------- --------
Adjusted earnings
per share excluding
exceptional items
and discontinued
operations 3.2p 3.4p 2.8p 3.1p 8.2p 8.9p
Loss per share on
exceptional items (1.5)p (1.6)p - - (1.1)p (1.2)p
-------------------------- ---------- ------- ---------- ------- ----------- --------
Earnings per share
from continuing
operations 1.7p 1.8p 2.8 p 3.1p 7.1p 7.7p
Loss per share on
discontinued operations - - (0.1)p (0.1)p (0.2)p (0.2)p
-------------------------- ---------- ------- ---------- ------- ----------- --------
Earnings per share 1.7p 1.8p 2.7p 3.0p 6.9p 7.5p
-------------------------- ---------- ------- ---------- ------- ----------- --------
Consolidated statement of comprehensive income
six months ended 30 September 2011
Unaudited Unaudited
six months six months
ended ended 12 months
30 September 30 September to March
2011 2010 2011
-------------------------------------------- -------------- -------------- ----------
Profit for the year 1,471 1,919 4,858
Other comprehensive income:
-------------------------------------------- -------------- -------------- ----------
Recycling translation reserves on closure
of subsidiary - - (97)
Exchange difference on translation of
foreign operations (155) (380) 529
Net profit/(loss) on cash flow hedges
(net of tax) 274 - (124)
-------------------------------------------- -------------- -------------- ----------
Other comprehensive income for period,
net of tax 119 (380) 308
Total comprehensive income for the period,
net of tax 1,590 1,539 5,166
Attributable to:
Owners of the Parent Company 1,018 1,127 4,300
Non-controlling interests 572 412 866
-------------------------------------------- -------------- -------------- ----------
1,590 1,539 5,166
-------------------------------------------- -------------- -------------- ----------
Consolidated statement of changes in equity
six months ended 30 September 2011
Share
premium
and capital Non-
Share redemption Merger Hedging Translation Retained Shareholder controlling
capital reserve reserves reserves reserve earnings equity interest Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
At 1 April
2011 2,698 4,386 17,164 (124) 776 23,190 48,090 4,220 52,310
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Profit for
the year - - - - - 993 993 478 1,471
Other
comprehensive
income - - - 274 (249) - 25 94 119
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Total
comprehensive
income for
the year - - - 274 (249) 993 1,018 572 1,590
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Equity-settled
share-based
payment - - - - - 53 53 - 53
Shares issued - - - - - - - - -
Options
exercised 14 25 - - - - 39 - 39
Equity
dividends
paid - - - - - - - (958) (958)
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
At 30 September
2011 2,712 4,411 17,164 150 527 24,236 49,200 3,834 53,034
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
For the six months ended 30 September 2010
Share
premium
and capital Non-
Share redemption Merger Hedging Translation Retained Shareholder controlling
capital reserve reserves reserves reserve earnings equity interest Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
At 1 April
2010 2,608 4,346 16,216 - 362 19,071 42,603 3,354 45,957
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Profit for
the period - - - - - 1,563 1,563 356 1,919
Other
comprehensive
income - - - - (436) - (436) 56 (380)
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Total
comprehensive
income for
the year - - - - (436) 1,563 1,127 412 1,539
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Equity-settled
share-based
payment - - - - - 49 49 - 49
Shares issued 74 - 948 - - - 1,022 - 1,022
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
At 30 September
2010 2,682 4,346 17,164 - (74) 20,683 44,801 3,766 48,567
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
For the year ended 31st March 2010
Share
premium
and capital Non-
Share redemption Merger Hedging Translation Retained Shareholder controlling
capital reserve reserves reserves reserve earnings equity interest Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
At 1 April
2010 2,608 4,346 16,216 - 362 19,071 42,603 3,354 45,957
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Profit for
the year - - - - - 4,010 4,010 848 4,858
Other
comprehensive
income - - - (124) 414 - 290 18 308
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Total
comprehensive
income for
the year - - - (124) 414 4,010 4,300 866 5,166
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Equity-settled
share-based
payment - - - - - 109 109 - 109
Shares issued 74 - 948 - - - 1,022 - 1,022
Options
exercised 16 40 - - - - 56 - 56
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
At 31 March
2011 2,698 4,386 17,164 (124) 776 23,190 48,090 4,220 52,310
---------------- ------ ----------- --------- --------- ------------ --------- ------------ ------------ -------
Consolidated balance sheet
as at 30 September 2011
Unaudited Unaudited
as at
as at 30 30 As at
September September 31 March
2011 2010 2011
Note GBP000 GBP000 GBP000
----------------------------------- ------- ---------- ---------
Non-current assets
Property, plant and equipment 31,130 32,404 31,518
Intangible assets 33,082 33,047 33,385
Deferred tax assets 4,758 3,456 4,616
------------------------------- ----------- ---------- ---------
Total non-current assets 68,970 68,907 69,519
------------------------------- ----------- ---------- ---------
Current assets
Inventory 64,202 63,465 45,582
Assets classified as held
for sale - 780 497
Trade and other receivables 69,360 67,537 21,494
Cash and cash equivalents 4 1,734 1,911 1,885
------------------------------- ------- ---------- ---------
Total current assets 135,296 133,693 69,458
------------------------------- ----------- ---------- ---------
Total assets 204,266 202,600 138,977
------------------------------- ----------- ---------- ---------
Equity
Share capital 2,712 2,682 2,698
Share premium 3,071 3,006 3,046
Reserves 19,181 18,430 19,156
Retained earnings 24,236 20,683 23,190
------------------------------- ----------- ---------- ---------
Equity attributable to owners of the
Parent Company 49,200 44,801 48,090
------------------------------- ----------- ---------- ---------
Non-controlling interests 3,834 3,766 4,220
------------------------------- ----------- ---------- ---------
Total equity 53,034 48,567 52,310
------------------------------- ----------- ---------- ---------
Non-current liabilities
Loans and borrowings 4 34,926 8,602 8,377
Deferred income 2,154 2,704 2,429
Provisions 1,847 1,722 1,847
Other financial liabilities 355 44 375
------------------------------- ----------- ---------- ---------
Total non-current liabilities 39,282 13,072 13,028
------------------------------- ----------- ---------- ---------
Current liabilities
Bank overdraft 5,940 7,174 3,620
Loans and borrowings 4 49,383 72,509 34,312
Deferred income 4 550 619 550
Provisions - 260 -
Income tax payable 585 686 162
Trade and other payables 42,324 45,112 25,353
Other financial liabilities 13,168 14,601 9,642
------------------------------- ----------- ---------- ---------
Total current liabilities 111,950 140,961 73,639
------------------------------- ----------- ---------- ---------
Total liabilities 151,232 154,033 86,667
------------------------------- ----------- ---------- ---------
Total equity and liabilities 204,266 202,600 138,977
------------------------------- ----------- ---------- ---------
Consolidated cash flow statement
six months ended 30 September 2011
Unaudited Unaudited
six months six months
ended ended 12 months
to 31
September September March
2011 2010 2011
GBP000 GBP000 GBP000
------------------------------------------------------ ----------- ----------
Cash flows from operating activities
Profit for the year 1,471 1,919 4,858
Adjustments for:
Depreciation 1,951 2,118 4,108
Impairment of tangible fixed assets 214 - -
Amortisation of intangible assets 261 177 331
Finance expenses - continuing operations 1,994 1,642 2,917
Finance expenses - discontinued
operations - 26 26
Recycling of translation reserves
on closure of subsidiary - - (97)
Income tax credit - continuing operations 662 138 (693)
(Profit)/loss on sales of property,
plant and equipment (7) 1 (33)
(Profit)/loss on disposal of assets
held for resale (15) - -
Impairments of assets held for resale - - 238
Equity-settled share-based payment 53 49 109
------------------------------------------- --------- ----------- ----------
Operating profit after adjustments
for non-cash items 6,584 6,070 11,764
Change in trade and other receivables (48,188) (45,955) 173
Change in inventory (18,643) (18,589) (303)
Change in trade and other payables 20,658 24,498 (381)
Change in provisions and deferred
income (275) (684) (518)
------------------------------------------- --------- ----------- ----------
Cash (used by)/generated from operations (39,864) (34,660) 10,735
Tax paid (388) 357 (420)
Interest and similar charges paid (1,628) (1,552) (3,226)
Receipts from sales of property
for resale 528 - -
Acquisition of property for resale - (780) (780)
------------------------------------------- --------- ----------- ----------
Net cash (outflow)/inflow from operating
activities (41,352) (36,635) 6,309
------------------------------------------- --------- ----------- ----------
Cash flow from investing activities
Proceeds from sale of property,
plant and equipment 42 14 73
Acquisition of intangible assets (166) (288) (521)
Acquisition of property, plant and
equipment (1,187) (1,186) (1,900)
------------------------------------------- --------- ----------- ----------
Net cash outflow from investing
activities (1,311) (1,460) (2,348)
------------------------------------------- --------- ----------- ----------
Cash flows from financing activities
Proceeds from issue of share capital 39 - 56
Repayment of secured borrowings (1,118) (471) (947)
Net movement in credit facilities 11,799 34,541 (3,222)
Payment of finance lease liabilities (35) (29) (113)
New bank loans raised 30,170 - -
New finance leases - 74 -
Dividends paid to non-controlling
interests (918) - -
------------------------------------------- --------- ----------- ----------
Net cash inflow/(outflow) from financing
activities 39,937 34,115 (4,226)
------------------------------------------- --------- ----------- ----------
Net increase in cash and cash equivalents (2,726) (3,980) (265)
Cash and cash equivalents at end
of period (1,735) (993) (993)
Effect of exchange rate fluctuations
on cash held 255 (290) (477)
------------------------------------------- --------- ----------- ----------
Cash and cash equivalents at 31
March (4,206) (5,263) (1,735)
------------------------------------------- --------- ----------- ----------
Notes to the interim financial statements
1 Accounting policies
Basis of preparation
The financial information contained in this interim report does
not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006 and is unaudited.
The Group interim report has been prepared and approved by the
Directors in accordance with International Financial Reporting
Standards as adopted by the EU ("Adopted IFRSs"). The financial
information for the year ended 31 March 2011 is extracted from the
statutory accounts of the Group for that financial year and does
not constitute statutory accounts as defined in Section 434 of the
Companies Act 2006. The report of the auditors was (i) unqualified;
(ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their
report and (iii) did not contain a statement under section 498 (2)
of the Companies Act 2006.
Going concern basis
The financial statements have been prepared on the going concern
basis. Following the restructure of its principal banking
facilities in July 2011 the Group now shows net current assets of
GBP23.3 million (2010 net current liabilities H1: GBP7.3
million).
In previous years the Group relied primarily on a short-term
facility for its working capital needs. In July 2011 the Group
negotiated with its principal bank more structured borrowings
(split between US dollars and sterling) comprising a five year loan
of GBP15.2 million with a bullet repayment on the fifth
anniversary, a four year amortising loan of GBP14.8 million, a one
year revolving multi-currency credit facility of up to GBP33
million and a one year rolling multi-currency overdraft facility of
up to GBP5 million, plus a two year asset back loan facility
secured on the UK business inventory and debtors.
We have also secured a three year asset backed loan facility of
up to GBP25 million with a US bank to assist in the funding of the
US business and to mitigate the currency effect on our facility
headroom.
The borrowing requirement of the Group increases steadily over
the period from July 2011 and peaks in September and October 2011
due to the seasonality of the business, as the sales of wrap and
crackers are mainly for the Christmas market, before then
reducing.
As with any company placing reliance on external entities for
financial support, the Directors acknowledge that there can be no
certainty that this support will continue although, at the date of
approval of this interim report, they have no reason to believe it
will not do so.
After making enquiries, the Directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in
preparing this interim report.
The interim report does not include all the information and
disclosures required in the annual financial statements, and should
be read in conjunction with the Group's annual financial statements
as at 31 March 2011.
Significant accounting policies
The accounting policies adopted in the preparation of the
interim report are consistent with those followed in the
preparation of the Group's annual financial statements for the year
ended 31 March 2011.
2 Segmental information
The Group has one material business activity being the design,
innovation and manufacture of giftwrap, crackers, card, stationery
and gift accessories.
For management purposes the Group is organised into four
geographic business units.
The results below are allocated based on the region in which the
businesses are located; this reflects the Group's management and
internal reporting structure. The decision was made during the last
year to focus Asia as a service provider of manufacturing and
procurement operations, whose main customers are our UK businesses.
Both the China factory and the majority of the Hong Kong
procurement operations are now managed by our UK operational
management team and we are therefore now including Asia within the
internal reporting of the UK operations, such that UK and Asia
comprise an operating segment. The Chief Operating Decision Maker
is the Board.
Intra-segment pricing is determined on an arm's length basis.
Segment results include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis.
Financial performance of each segment is measured on operating
profit. Interest expense or revenue and tax are managed on a Group
basis and not split between reportable segments.
Segment assets are all non-current and current assets, excluding
deferred tax and income tax receivable. Where cash is shown in one
segment, which nets under the Group's banking facilities, against
overdrafts in other segments, the elimination is shown in the
eliminations column. Similarly inter-segment receivables and
payables are eliminated.
UK and Asia Europe USA Australia Eliminations Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------------------------------- --------- --------- ---------- ------------- ----------
Six months ended 30 September 2011
Continuing operations
Revenue - external 59,945 12,409 23,764 14,159 - 110,277
- intra-segment 2,340 1,302 - - (3,642) -
---------------------------- --------- --------- --------- ---------- ------------- ----------
Total segment revenue 62,285 13,711 23,764 14,159 (3,642) 110,277
---------------------------- --------- --------- --------- ---------- ------------- ----------
Segment result before
exceptional items 3,058 701 1,145 1,405 - 6,309
Exceptional items (225) - - - - (225)
---------------------------- --------- --------- --------- ---------- ------------- ----------
Segment result 2,833 701 1,145 1,405 - 6,084
---------------------------- --------- --------- --------- ---------- ------------- ----------
Central administration costs (1,102)
Central administration exceptional items (855)
Net finance expenses (1,994)
Income tax (662)
---------------------------------------------------------------------------------------- ----------
Profit from continuing operations for the
six months ended 30 September 2011 1,471
---------------------------------------------------------------------------------------- ----------
Balances at 30 September 2011
Continuing operations
----------------------------------------------------------------------------------------------------
Segment assets 143,246 24,324 19,158 12,781 4,757 204,266
---------------------------- --------- --------- --------- ---------- ------------- ----------
Segment liabilities (81,867) (21,766) (39,632) (7,388) (579) (151,232)
---------------------------- --------- --------- --------- ---------- ------------- ----------
Capital expenditure
- property, plant and
equipment 232 746 147 62 1,187
- intangible 72 29 48 17 166
Depreciation 1,119 395 346 91 - 1,951
Amortisation 178 29 12 42 - 261
Impairment of property,
plant and equipment 214 - - - - 214
---------------------------- --------- --------- --------- ---------- ------------- ----------
Restated Restated Restated
UK and Asia Europe USA Australia Eliminations Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------------------------------------- --------- --------- ---------- ------------- ----------
Six months ended 30 September 2010 restated
Continuing operations
Revenue - external 58,716 11,635 22,575 11,527 - 104,453
- intra-segment 3,391 1,034 - - (4,425) -
---------------------------------- --------- --------- --------- ---------- ------------- ----------
Total segment revenue 62,107 12,669 22,575 11,527 (4,425) 104,453
----------------------------------- --------- --------- --------- ---------- ------------- ----------
Segment result from continuing
operations 2,437 816 262 1,077 (32) 4,560
Pre-tax loss from discontinued
operations (see below) - (78) - - - (78)
Segment result 2,437 738 262 1,077 (32) 4,482
----------------------------------- --------- --------- --------- ---------- ------------- ----------
Pre-tax loss from discontinued operations 78
Central administration costs (783)
Net finance expenses (1,642)
Income tax (138)
----------------------------------------------------------------------------------------------- ----------
Profit from continuing operations for the
six months ended 30 September 2011 1,997
----------------------------------------------------------------------------------------------- ----------
Balances at 30 September 2011
Continuing operations
-----------------------------------------------------------------------------------------------------------
Segment assets 158,728 30,887 13,272 13,209 (13,496) 202,600
----------------------------------- --------- --------- --------- ---------- ------------- ----------
Segment liabilities (87,333) (29,615) (46,299) (6,252) 15,466 (154,033)
----------------------------------- --------- --------- --------- ---------- ------------- ----------
Capital expenditure
- property, plant and
equipment 848 132 38 168 - 1,186
- asset for resale - - 780 - - 780
- intangible 121 - 61 106 - 288
Depreciation 1,184 444 413 74 3 2,118
Amortisation 100 15 38 24 - 177
Impairment of property,
plant and equipment 3 - - - (3) -
----------------------------------- --------- --------- --------- ---------- ------------- ----------
UK and Asia Europe USA Australia Eliminations Group
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------------------------------------------- --------- --------- ---------- ------------- ---------
Year ended 31 March 2011
Continuing operations
Revenue - external 117,806 33,493 39,980 25,578 - 216,857
- intra-segment 11,895 1,336 - - (13,231) -
----------------------------------------- --------- --------- --------- ---------- ------------- ---------
Total segment revenue 129,701 34,829 39,980 25,578 (13,231) 216,857
----------------------------------------- --------- --------- --------- ---------- ------------- ---------
Segment result before
exceptional items and
discontinued operations 2,673 2,107 2,096 2,455 9,331
Exceptional items (510) - (238) - (748)
----------------------------------------- --------- --------- --------- ---------- ------------------------
Segment result from continuing
operations 2,163 2,107 1,858 2,455 - 8,583
Pre-tax loss from discontinued
operations - (100) - - - (100)
----------------------------------------- --------- --------- --------- ---------- ------------- ---------
Segment result 2,163 2,007 1,858 2,455 - 8,483
----------------------------------------- --------- --------- --------- ---------- ------------- ---------
Pre-tax loss from discontinued operations 100
Central administration costs (1,249)
Central administration costs exceptional items (152)
Net finance expenses (2,917)
Income tax 693
----------------------------------------------------------------------------------------------------- ---------
Profit from continuing operations for the
year ended 31 March 2010 4,958
----------------------------------------------------------------------------------------------------- ---------
Balances at 31 March 2011
Continuing operations
----------------------------------------------------------------------------------------------------------------
Segment assets 100,853 18,112 6,272 9,438 4,302 138,977
----------------------------------------- --------- --------- --------- ---------- ------------- ---------
Segment liabilities (41,243) (15,721) (27,245) (2,611) 153 (86,667)
----------------------------------------- --------- --------- --------- ---------- ------------- ---------
Capital expenditure
- property, plant and
equipment 1,334 297 231 279 - 2,141
- intangible 307 17 16 181 - 521
Depreciation 2,346 821 780 161 - 4,108
Amortisation 161 44 64 62 - 331
Impairment of property,
plant and equipment - - 238 - - 238
----------------------------------------- --------- --------- --------- ---------- ------------- ---------
3 Exceptional items
Six months
ended 30
September
2011
GBP000
----------------------------------------------------
Restructuring of operational activities
- Redundancies (note a) 855
- Impairment of leasehold land & buildings
in China (note b) 225
-------------------------------------------- ------
Total restructuring costs 1,080
Income tax credit (222)
-------------------------------------------- ------
858
-------------------------------------------- ------
(a) Redundancies relating to the termination expenses of three
directors who have left the business following a review of Board
responsibilities.
(b) Impairment of leasehold land & buildings in China as a
result of the decision to move the China factory.
4 Cash, loans and borrowing
Six months Six months
ended 12 months
ended 30 30 to
September September 31 March
2011 2010 2011
GBP000 GBP000 GBP000
--------------------------------------------------- ---------- ----------
Secured bank loan (short term) (3,918) (1,042) (962)
Secured bank loan (long term) (34,926) (8,602) (8,377)
Asset backed loans (36,811) (22,999) (4,449)
Revolving credit facilities (8,654) (48,468) (28,901)
---------------------------------------- --------- ---------- ----------
Total loans (84,309) (81,111) (42,689)
Cash and bank deposits 1,734 1,911 1,885
Bank overdraft (5,940) (7,174) (3,620)
---------------------------------------- --------- ---------- ----------
Cash and cash equivalents per
cash flow statement (4,206) (5,263) (1,735)
---------------------------------------- --------- ---------- ----------
Net debt used in the Chief Executive's
Review (88,515) (86,374) (44,424)
---------------------------------------- --------- ---------- ----------
5 Taxation
Six months Six months
ended 12 months
ended 30 30 to
September September 31 March
2011 2010 2011
GBP000 GBP000 GBP000
------------------------------------------- ---------- ----------
Current tax expenses
Current income tax charge (825) (243) (539)
Deferred tax expense
Relating to original and reversal
of temporary differences 163 105 1,232
Total tax in income statement (662) (138) 693
----------------------------------- ------ ---------- ----------
Taxation for the six months to 30 September is based on the
effective rate of taxation, which is estimated to apply in each
country for the year ended 31 March 2012.
6 Earnings per share
As at As at As at
30 September 30 September 31 March
2011 2010 2011
------------------------------ ----------------- ----------------- -----------------
Diluted Basic Diluted Basic Diluted Basic
------------------------------ -------- ------- -------- ------- -------- -------
Adjusted earnings
per share excluding
exceptional items
and discontinued operations 3.2p 3.4p 2.8p 3.1p 8.2p 8.9p
Loss per share on
exceptional items (1.5)p (1.6)p - - (1.1)p (1.2)p
------------------------------ -------- ------- -------- ------- -------- -------
Loss per share on
discontinued operations - - (0.1)p (0.1)p (0.2)p (0.2)p
------------------------------ -------- ------- -------- ------- -------- -------
Earnings per share
from continuing operations 1.7p 1.8p 2.8 p 3.1p 7.1p 7.7p
------------------------------ -------- ------- -------- ------- -------- -------
The basic earnings per share is based on the profit attributable
to equity holders of the Parent Company of GBP993,000 (2010:
GBP1,563,000) and the weighted average number of ordinary shares in
issue of 54,102,407 (2010: 52,371,295) calculated as follows:
September September 31 March
Weighted average number of shares
in thousands of shares 2011 2010 2011
Issued ordinary shares at 1
April 53,967 52,150 52,150
Shares issued in respect of
acquisitions 0 221 854
Shares issued in respect of
exercising of share options 136 0 123
Weighted average number of shares
at 31 March 54,103 52,371 53,127
----------------------------------- ------- ---------- ---------
Total number of options, over 5p ordinary shares, in issue at 30
September 2011 and during the period was 5,772,556.
Adjusted basic earnings per share excludes exceptional items
charged of GBP1,080,000 (2010: nil), the tax relief attributable to
those items of GBP222,000 (2010: nil) and the loss on discontinued
operations (net of tax) of Nil (2010: GBP78,000), to give an
adjusted profit of GBP1,851,000 (2010: GBP1,641,000).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFIAFELEIIL
Ig Design (LSE:IGR)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Ig Design (LSE:IGR)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024
