TIDMPEB
RNS Number : 0382L
Pebble Beach Systems Group PLC
08 September 2021
Pebble Beach Systems Group plc
Results for the half-year ended 30 June 2021
Pebble Beach Systems Group plc (the "Group", "Company" or
"Pebble"), a leading global software business specialising in
playout automation and content management solutions for the
broadcast and streaming service markets, is pleased to announce its
unaudited half-year results for the six months ended 30 June 2021
.
Financial highlights
-- Orders received up 64% to GBP6.4m (H1 20: GBP3.9m).
-- Revenue up 9% to GBP4.9m (H1 20: GBP4.5m), recurring revenue
up 10% to GBP2.05m (H1 20: GBP1.86m).
-- Adjusted EBITDA(1) up 14% to GBP1.7m (H1 20: GBP1.5m),
representing 35% of revenue (H1 20: 34%).
-- Profit before tax up 36% to GBP1.0m (H1 20: GBP0.7m).
-- Adjusted earnings per share up 33% to 0.8p (H1 20: 0.6p).
-- Net cash from operating activities up 32% to GBP1.8m (H1 20: GBP1.4m).
-- Net debt(2) down GBP1.1m in last six months to GBP6.6m at 30 June 2021.
Operational highlights
-- The delays in customers order placement that were experienced
in H2 2020 have eased significantly in the period.
-- The capabilities of our Pebble Control application have been further enhanced.
-- Development of our Oceans platform continues to plan.
-- Strategic move to a fully remote operating model delivering
operational benefits in terms of resilience, organisational growth,
and performance.
Current trading and outlook
-- Sustained growth in the period with a further increase in our
pipeline by 7% coming on top of a 64% increase in our order
intake.
-- Well positioned to sustain performance into second half and beyond.
-- Considering ways in which to now further accelerate growth.
John Varney, Non-Executive Chairman of Pebble Beach Systems
Group plc, said:
" The Group has clearly delivered an excellent performance for
the first half of 2021. These results and our continued investment
in new software solutions coupled with our new remote operating
model, has demonstrated that we are correct to have confidence in
our ability to continue to grow this year and to take that momentum
into 2022."
Notes
(1) Adjusted EBITDA, a non-GAAP measure, is EBITDA before
non-recurring items and foreign exchange gains/losses.
(2) Net debt is the aggregation of cash and bank borrowings,
excluding IFRS 16 leases
For further information please contact:
Peter Mayhead - CEO +44 (0) 75 55 59
David Dewhurst - CFO 36 02
finnCap Ltd (Nominated Adviser
and Broker )
Marc Milmo / Teddy Whiley - Corporate +44 (0) 207 220
Finance 0500
Tim Redfern / Sunila de Silva
- ECM
The Company is quoted on the LSE AIM market (PEB.L). More
information can be found at www.pebbleplc.com .
About Pebble Beach Systems
Pebble Beach Systems (trading as Pebble) is a world leader in
designing and delivering automation, integrated channel and
virtualised playout solutions, with scalable products designed for
applications of all sizes. Founded in 2000, Pebble has commissioned
systems in more than 70 countries, with proven installations
ranging from single up to over 150 channels in operation, and
around 2000 channels currently on air under the control of our
automation technology. An innovative, agile company, Pebble is
focused on discovering its customers' requirements and pain points,
designing solutions which will address these elegantly and
efficiently, and delivering and supporting these professionally and
in accordance with its users' needs.
Forward-looking statements
Certain statements in this announcement are forward-looking.
Although the Group believes that the expectations reflected in
these forward-looking statements are reasonable, it can give no
assurance that these expectations will prove to be correct. Because
these statements involve risks and uncertainties, actual results
may differ materially from those expressed or implied by these
forward-looking statements. The Group undertakes no obligation to
update any forward-looking statements whether as a result of new
information, future events or otherwise. Nothing in this
announcement should be construed as a profit forecast.
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report that the Group has continued its robust
response to the challenges presented by COVID-19 and has now fully
embraced remote working as its primary means of operation. The
order intake increased 64% from the comparative period of 2020,
benefitting from two large orders totalling GBP1.5 million,
deferred because of COVID-19 into 2021, confirming our prior
confidence that COVID-19 had merely delayed a number of projects in
the pipeline.
We delivered revenue up 9% on the comparative period of 2020,
when the pandemic was just starting to impact, so it is encouraging
to see business recover and flourish. Recurring revenue from our
service contracts was up 10% and this remains an important element
of our growth plans.
We continue to see an increasing opportunity for our software
and are accelerating our investment in cloud and IP-based
technology which will facilitate the delivery of our software
solutions on new commercial offerings or a subscription basis that
some customers are keen to explore. The investment in our new
digital platform, Oceans, also combines the benefits of current
technologies enabling our customers to establish all-IP workflows
and continuing to benefit from their existing investments. We
firmly believe that increasing the rate of investment in our new
technology is critical to meet the market demand for all-IP and
cloud-based solutions.
Financial performance
-- Orders received up 64% to GBP6.4m (H1 20: GBP3.9m)
o Includes GBP1.5m delayed from 2020 but still up 26% allowing
for these COVID-19 related delayed contracts.
-- Revenue up 9% to GBP4.9m (H1 20: GBP4.5m), recurring revenue
up 10% to GBP2.05m (H1 20: GBP1.86m).
-- Adjusted EBITDA1 up 14% to GBP1.7m (H1 20: GBP1.5m),
representing 35% of revenue (H1 20: 34%).
-- Net cash from operating activities up 32% to GBP1.8m (H1 20: GBP1.4m);
o Funded increased investment in capitalised R&D of GBP0.7m
(H1 20: GBP0.6m).
Operational performance
-- Four significant new project wins in the period
o GBP1.2m project underway in partnership with Qvest, a leading
Systems Integrator, to fully upgrade ORF's existing playout
capability with all-IP and UHD capability retaining Pebble as the
automation provider.
o Two significant projects totalling GBP1.5m were won in the
period to enable new customers in Europe and the Far East to
migrate from legacy solutions historically supplied by competitors
Imagine and Grass Valley.
o A key project was won and delivered in the period for an
existing customer, TV2 Denmark, to enable them to broadcast the
recent European football tournament on their "TV2 Play" online
platform.
-- Ongoing software development
o The capabilities of Pebble Control have been further enhanced
with the release of the VideoIPath integration allowing control of
Software Defined Networks through Sony's Nevion orchestration
product.
o Five positions filled in the period as we move to expand our
software development capability to meet both long term roadmap and
immediate customer requirements.
o Two new R&D projects have been launched to develop our
next generation Media Processing and Automation Engines native to
the Oceans platform. These applications will sit alongside Pebble
Control and our upcoming Pebble Orchestration engine thus enabling
us to fulfil the technical element of our strategy to offer
customers the full flexibility only achievable with the Oceans
platform offering IP native next generation media management,
automation, and control.
-- Remote operating model
o The move to remote working has significantly curtailed the
ongoing impact of COVID-19 on our operations and the sizeable
increase in order intake demonstrates that we are able to do
business; however, there is no doubt that our selling and delivery
efforts continue to experience some delays as the result of
international travel restrictions.
o We have further enhanced our commitment to a fully remote
operating model with the recent vacation of one of our two
Weybridge office units and the commencement of the process to hire
a Head of Remote to work with the management over the next twelve
months to support our transformation to a world class fully remote
organisation.
-- Inventory build
o The worldwide shortage of semiconductors is having some impact
on project delivery timescales for those projects where customers
have asked us to supply configured hardware. We have mitigated the
impact by temporarily increasing our hardware inventory.
Cash flows and net debt
The Group held cash and cash equivalents of GBP1.4 million at 30
June 2021 (H1 2020: GBP1.4 million). The table below summarises the
cash flows for the half year.
2021 2020
GBP'million GBP'million
------------------------------------------- ------------ ------------
Cash generated from operating activities 1.8 1.4
Net cash used in investing activities (0.7) (0.7)
Net cash used in financing activities (0.5) (0.4)
Net increase in cash and cash equivalents 0.6 0.3
Cash and cash equivalents at 1 January 0.8 1.1
------------------------------------------- ------------ ------------
Cash and cash equivalents at 30 June 1.4 1.4
------------------------------------------- ------------ ------------
As at 30 June 2021 net debt(2) , excluding the impact of IFRS16,
was GBP6.6 million (cash GBP1.4 million and bank debt of GBP8.0
million). The Group was using all GBP8.0 million of its available
facilities at 30 June 2021, having re-paid GBP0.5 million in the
period.
Going concern
The Directors, having made suitable enquiries and analysis of
the accounts, consider that the Group has adequate resources to
continue in business for the foreseeable future. In making this
assessment, which covers a minimum period of twelve months from
approval of this half-year report, the Directors have considered
the Group's trading forecast, cash flow forecasts, available
headroom and projected financial covenants on the banking facility,
and levels of recurring support revenue. (See Note 3 below).
Board
On 4 May 2021, Chris Errington, a partner at our largest
shareholder Kestrel Partners LLP, was appointed to the Board as a
non-executive director.
Principal risks and uncertainties
The principal risks and uncertainties facing the Group remain
consistent with the Principal Risks and Uncertainties reported in
the Group's 31 December 2020 Annual Report. Since the 2020 Annual
Report, the impact of the COVID-19 pandemic on the business
continues to be monitored by the Board.
Current trading and outlook
Globally, all sectors are still impacted by the ongoing effects
of COVID-19, but our results for the first half show those effects
are lessening, despite some customers still displaying a cautionary
approach to their investment decisions.
Our pipeline remains strong with good growth evident during H1
which has continued into the second half. Our results for the first
half of the year and our continued investment in new software
solutions coupled with our new remote operating model, has
demonstrated that we are correct to have confidence in our ability
to continue to grow this year and to take that momentum into
2022.
John Varney
Non-Executive Chairman
CONSOLIDATED INCOME STATEMENT
for the half year ended 30 June 2021
6 months 6 months Year ended
to 30 June to 30 June 31 December
2021 2020 2020
(Unaudited) (Unaudited) (Audited)
Notes GBP'000 GBP'000 GBP'000
Revenue 4 4,889 4,486 8,393
Cost of sales (1,025) (1,116) (1,964)
------------ ------------ -------------
Gross profit 3,864 3,370 6,429
Sales and marketing expenses (789) (901) (1,687)
Research and development expenses (638) (605) (1,263)
Administrative expenses (1,233) (878) (1,870)
Foreign exchange (losses)/gains (33) 103 15
Other expenses - (156) (156)
Operating profit 5 1,171 933 1,468
--------------------------------------------- ------ ------------ ------------ -------------
Operating profit is analysed as:
Adjusted EBITDA 1,733 1,515 2,658
Exchange (losses)/gains (charged)/credited
to the income statement (33) 103 15
--------------------------------------------- ------ ------------ ------------ -------------
Earnings before interest, tax, depreciation
and amortisation (EBITDA) 1,700 1,618 2,673
--------------------------------------------- ------ ------------ ------------ -------------
Depreciation (114) (124) (234)
Amortisation and impairment of acquired
intangibles - (156) (156)
Amortisation of capitalised development
costs (415) (405) (815)
Finance costs (168) (195) (374)
Finance income - 1 1
Profit before tax 1,003 739 1,095
Tax 6 (19) 6 199
------------ ------------ -------------
Profit for the period being attributable
to owners of the parent 984 745 1,294
Earnings per share
attributable to the owners of
the parent during the period
Basic earnings per share 7 0.8p 0.6p 1.0p
Diluted earnings per share
Diluted earnings per share 7 0.8p 0.6p 1.0p
--------------------------------------------- ------ ------------ ------------ -------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the half year ended 30 June 2021
6 months 6 months Year ended
to 30 to 30 31 December
June 2021 June 2020 2020
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
----------------------------------- ------------ ------------ -------------
Profit for the financial
year 984 745 1,294
Other comprehensive income
- items that may be reclassified
subsequently to profit
or loss:
Exchange differences on
translation of overseas
operations 6 (49) 26
Total profit for the period
attributable to owners
of the parent 990 696 1,320
------------------------------------ ------------ ------------ -------------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
for the half year ended 30 June 2021
Capital
Ordinary Share redemption Merger Translation Accumulated
shares premium reserve reserve reserve losses Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 1 January 2021 3,115 6,800 617 29,778 (150) (43,626) (3,466)
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Share based payments:
value of employee
services - - - - - 13 13
Transactions with
owners - - - - - 13 13
Retained profit
for the period - - - - - 984 984
Exchange differences
on translation of
overseas operations - - - - 6 - 6
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Total comprehensive
income/expense for
the period - - - - 6 984 990
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 30 June 2021
(Unaudited) 3,115 6,800 617 29,778 (144) (42,629) (2,463)
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 1 January 2020 3,115 6,800 617 29,778 (176) (44,976) (4,842)
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Share based payments:
value of employee
services - - - - - 6 6
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Transactions with
owners - - - - - 6 6
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Retained profit
for the period - - - - - 745 745
Exchange differences
on translation of
overseas operations - - - - (49) - (49)
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Total comprehensive
income/expense for
the period - - - - (49) 745 696
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 30 June 2020
(Unaudited) 3,115 6,800 617 29,778 (225) (44,225) (4,140)
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 1 January 2020 3,115 6,800 617 29,778 (176) (44,976) (4,842)
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Share based payments:
value of employee
services - - - - - 12 12
Unclaimed dividends - - - - - 44 44
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Transactions with
owners - - - - - 56 56
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Retained profit
for the year - - - - - 1,294 1,294
Exchange differences
on translation of
overseas operations - - - - 26 - 26
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
Total comprehensive
income/expense for
the period - - - - 26 1,294 1,320
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
At 31 December 2020
(Audited) 3,115 6,800 617 29,778 (150) (43,626) (3,466)
----------------------- ----------- ---------- ------------ ---------- -------------- -------------- ---------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2021
30 June 30 June 31 December
2021 2020 2020
(Unaudited) (Unaudited) (Audited)
Notes GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 8 5,297 4,730 5,001
Property, plant and equipment 1,114 1,151 1,208
6,411 5,881 6,209
------------ ----------- ------------
Current assets
Inventories 282 188 148
Trade and other receivables 3,057 3,344 3,125
Cash and cash equivalents 1,444 1,395 826
------------ ----------- ------------
4,783 4,927 4,099
Liabilities
Current liabilities
Financial liabilities - borrowings 1,300 1,520 1,800
Trade and other payables 4,521 4,437 4,059
Lease liabilities - current 143 126 145
------------ ----------- ------------
5,964 6,083 6,004
------------ ----------- ------------
Net current liabilities (1,181) (1,156) (1,905)
------------ ----------- ------------
Non-current liabilities
Financial liabilities - borrowings 6,750 7,650 6,750
Lease liabilities - non-current 943 991 1,020
Deferred tax liabilities - 224 -
7,693 8,865 7,770
------------ ----------- ------------
Net liabilities (2,463) (4,140) (3,466)
------------------------------------ ------ ------------ ----------- ------------
Equity attributable to owners of
the parent
Ordinary shares 3,115 3,115 3,115
Share premium account 6,800 6,800 6,800
Capital redemption reserve 617 617 617
Merger reserve 29,778 29,778 29,778
Translation reserve (144) (225) (150)
Retained earnings (42,629) (44,225) (43,626)
------------ ----------- ------------
Total equity (2,463) (4,140) (3,466)
------------------------------------ ------ ------------ ----------- ------------
CONSOLIDATED STATEMENT OF CASH FLOWS
for the half year ended 30 June 2021
6 months 6 months Year ended
to 30 June to 30 June 31 December
2021 2020 2020
(Unaudited) (Unaudited) (Audited)
Notes GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from operations 9 2,030 1,603 2,484
Interest paid (168) (195) (374)
Taxation paid (19) (16) (46)
------------ ------------ -------------
Net cash from operating activities 1,843 1,392 2,064
------------ ------------ -------------
Cash flows from investing activities
Interest received - 1 1
Purchase of property, plant and equipment (21) (63) (107)
Expenditure on capitalised development
costs (711) (620) (1,301)
Net cash used in investing activities (732) (682) (1,407)
------------ ------------ -------------
Cash flows from financing activities
Net cash used in repayment of financing
activities (500) (380) (1,000)
Net cash used in financing activities (500) (380) (1,000)
------------ ------------ -------------
Net increase/(decrease) in cash and
cash equivalents 611 330 (343)
Effect of foreign exchange rate changes 7 (79) 25
------------ ------------ -------------
Cash and cash equivalents and overdrafts
at 1 January 826 1,144 1,144
Cash and cash equivalents and overdrafts
at period end 1,444 1,395 826
------------ ------------ -------------
Net debt comprises:
Cash and cash equivalents and overdrafts 1,444 1,395 826
Borrowings (8,050) (9,170) (8,550)
------------ ------------ -------------
Net debt at period end (6,606) (7,775) (7,724)
------------------------------------------- ------ ------------ ------------ -------------
NOTES TO THE HALF-YEAR REPORT
for the six months ended 30 June 2021
1. GENERAL INFORMATION
The Pebble Beach Systems Group is a leading global software
business specialising in solutions for playout automation and
content, serving customers in the broadcast markets.
The Company is a public limited company and is quoted on the
Alternative Investment Market (AIM) of the London Stock Exchange.
The Company is incorporated and domiciled in the UK, with
registered number of 04082188.. The address of its registered
office is 12 Horizon Business Village, 1 Brooklands Road,
Weybridge, Surrey, KT13 0TJ.
This half-year results announcement was approved by the board on
7 September 2021.
2. BASIS OF PREPARATION
The financial information for the period ended 30 June 2021 set
out in this half-year report does not constitute statutory accounts
as defined in Section 434 of the Companies Act 2006. The Group's
statutory financial statements for the year ended 31 December 2020
have been filed with the Registrar of Companies. The auditor's
report on those financial statements was unqualified.
The half-year financial information has been prepared using the
same accounting policies and estimation techniques as will be
adopted in the Group financial statements for the year ending 31
December 2021. The Group financial statements for the year ended 31
December 2020 were prepared under International Financial Reporting
Standards as adopted by the European Union. These interim financial
statements have been prepared on a consistent basis and format. The
Group has not applied IAS 34 'Interim Financial Reporting', which
is not mandatory for AIM companies, in the preparation of these
interim financial statements.
3. GOING CONCERN
The Directors, having made suitable enquiries and analysis of
the accounts, consider that the Group has adequate resources to
continue in business for the foreseeable future. In making this
assessment, which covers a minimum period of twelve months from
approval of this half-year report, the Directors have considered
the Group's trading forecast, cash flow forecasts, available
headroom and projected financial covenants on the banking facility,
the levels of opportunities in the pipeline and recurring support
revenue.
Pebble along with most companies has been impacted by the
COVID-19 pandemic and recurring national lockdowns, however the
impact on our Group has in the main been limited to the initial
disruption of the early stages of the emerging challenges,
including the on-going restrictions on physical movement of staff
around the world. We moved to remote working and have adopted that
as our primary mode of operation.
We remain cautious in respect of the ongoing impact of the
COVID-19 pandemic. From our experience of the impact of the
pandemic since March 2020, we are confident we are fundamentally
resilient to the challenges it brings due to the Group's ability to
service its customers remotely and its recurring revenue base from
support contracts.
On the basis of the above considerations, the Directors have a
reasonable expectation that the Group will have adequate resources
to continue in business for the foreseeable future and therefore
continue to adopt the going concern basis in preparing the interim
financial statements .
4. SEGMENTAL REPORTING
The Group's internal organisational and management structure and
its system of internal financial reporting to the Board of
Directors comprise of Pebble Beach Systems Limited and PLC costs.
The chief operating decision-maker has been identified as the
Board.
The Board reviews the Group's internal financial reporting in
order to assess performance and allocate resources. Management have
therefore determined that the operating segments for the Group will
be based on these reports.
The Pebble Beach Systems Limited business is responsible for the
sales and marketing of all Group software products and
services.
The table below shows the analysis of Group external revenue and
operating profit by business segment.
Pebble PLC costs Total
Beach Systems
GBP'000 GBP'000 GBP'000
----------------------------------------------- --------------- ---------- --------
6 months to 30 June 2021 (Unaudited)
--------------- ---------- --------
Total revenue 4,889 - 4,889
--------------- ---------- --------
Adjusted EBITDA 1,987 (254) 1,733
Depreciation (114) - (114)
Amortisation of capitalised development
costs (415) - (415)
Exchange losses (31) (2) (33)
Finance costs (19) (149) (168)
Intercompany finance income/(costs) 46 (46) -
Profit/(loss) before taxation 1,454 (451) 1,003
Taxation (77) 58 (19)
Profit/(loss) for the period being
attributable to owners of the parent 1,377 (393) 984
----------------------------------------------- --------------- ---------- --------
6 months to 30 June 2020 (Unaudited)
--------------- ---------- --------
Total revenue 4,486 - 4,486
--------------- ---------- --------
Adjusted EBITDA 1,755 (240) 1,515
Depreciation (124) - (124)
Amortisation and impairment of acquired
intangibles (156) - (156)
Amortisation of capitalised development
costs (405) - (405)
Exchange gains 96 7 103
Finance costs (24) (171) (195)
Finance income 1 - 1
Profit/(loss) before taxation 1,143 (404) 739
Taxation 6 - 6
Profit/(loss) for the period being
attributable to owners of the parent 1,149 (404) 745
----------------------------------------------- --------------- ---------- --------
Year to 31 December 2020 (Audited)
--------------- ---------- --------
Total revenue 8,393 - 8,393
--------------- ---------- --------
Adjusted EBITDA 3,234 (576) 2,658
Depreciation (234) - (234)
Amortisation of acquired intangibles (156) - (156)
Amortisation of capitalised development
costs (815) - (815)
Exchange (losses)/gains (3) 18 15
Finance costs (40) (334) (374)
Finance income 1 - 1
Intercompany finance income/(costs) 217 (217) -
Profit/(loss) before taxation 2,204 (1,109) 1,095
Taxation (152) 351 199
Profit/(loss) for the year being attributable
to owners of the parent 2,052 (758) 1,294
----------------------------------------------- --------------- ---------- --------
Geographic external revenue analysis
The revenue analysis in the table below is based on the
geographical location of the customer of the business.
6 months 6 months Year ended
to 30 June to 30 June 31 December
2021 2020 2020
(Unaudited) (Unaudited) (Audited)
Total Total Total
GBP'000 GBP'000 GBP'000
---------------- ------------- ------------ -------------
By market
UK & Europe 3,002 2,532 4,855
North America 327 276 842
Latin America 156 339 333
Middle East 776 1,118 2,114
Asia / Pacific 628 221 249
4,889 4,486 8,393
---------------- ------------- ------------ -------------
Net assets
The table below summarises the net assets of the Group by
division. Balance sheet reporting is disclosed by the divisional
assets and liabilities of the Group as this is consistent with the
presentation of internal information provided to the Executive
Management Board and the Board of Directors.
6 months 6 months Year ended
to 30 June to 30 31 December
2021 June 2020 2019
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
---------------------- ------------ ----------- -------------
By division:
Pebble Beach Systems 5,410 5,404 5,018
PLC costs (7,873) (9,544) (8,484)
(2,463) (4,140) (3,466)
---------------------- ------------ ----------- -------------
5. OPERATING PROFIT
The following items have been included in arriving at the
operating profit for the business:
6 months 6 months Year ended
to 30 June to 30 31 December
2021 June 2020 2020
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
----------------------------------------------------------- ------------ ----------- -------------
Depreciation of property, plant and equipment 114 124 234
Amortisation of acquired intangibles - 156 156
Exchange losses/(gains) charged/(credited)
to profit and loss 33 (103) (15)
Research and development expenditure in
the year which includes: 638 605 1,263
* Amortisation of capitalised development costs 415 405 815
----------------------------------------------------------- ------------ ----------- -------------
6. INCOME TAX EXPENSE
6 months 6 months Year ended
to 30 June to 30 31 December
2021 June 2020 2020
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
--------------------------------------- ------------ ----------- -------------
Current tax
UK corporation tax - - -
Foreign Tax - current year 19 16 35
Adjustments in respect of prior years - - 11
--------------------------------------- ------------ ----------- -------------
Total current tax 19 16 46
--------------------------------------- ------------ ----------- -------------
Deferred tax
UK corporation tax - (22) (276)
Foreign Tax - current year - - 26
Adjustments in respect of prior years - - 5
Total deferred tax - (22) (245)
--------------------------------------- ------------ ----------- -------------
Total taxation 19 (6) (199)
--------------------------------------- ------------ ----------- -------------
In the Spring Budget 2021, the Government announced that from 1
April 2023 the corporation tax rate would increase from 19 per cent
to 25 per cent. Deferred taxes at the balance sheet date have been
measured using current rate of 19 per cent and this is reflected in
these financial statements. It is likely that the overall effect
had a rate of 25 per cent been used, would be no change to the tax
charge for the period nor to the deferred tax liability.
7. EARNINGS PER ORDINARY SHARE
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares outstanding during the year.
For diluted earnings per share the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. The dilutive shares are those
share options granted to employees where the exercise price is less
than the average market price of the Company's ordinary shares
during the year. The average market value of the Company's shares
for the purpose of calculating the dilutive effect of share options
was based on quoted market prices for the year during which the
options were outstanding.
Reconciliations of the earnings and weighted average number of
shares used in the calculations are set out below.
6 months to 30 June 2021 (Unaudited)
Weighted
average Earnings
number per share
Earnings of shares pence
GBP'000 '000s
------------------------------------ --------------- ------------ ------------
Basic earnings per share
Profit attributable to ordinary
shareholders 984 0.8p
Basic earnings per share 984 124,477 0.8p
------------------------------------ --------------- ------------ ------------
Diluted earnings per share
Profit attributable to ordinary
shareholders 984 0.8p
------------------------------------ --------------- ------------ ------------
Diluted earnings per share 984 126,909 0.8p
------------------------------------ --------------- ------------ ------------
6 months to 30 June 2020
(Unaudited)
Weighted
average Earnings
number per
Earnings of shares share
GBP'000 '000s pence
--------------------------------- ----------- ------------ --------------
Basic earnings per share
Profit attributable to ordinary
shareholders 745 0.6p
Basic earnings per share 745 124,477 0.6p
--------------------------------- ----------- ------------- -------------
Diluted earnings per share
Profit attributable to ordinary
shareholders 745 0.6p
Diluted earnings per share 745 126,564 0.6p
--------------------------------- ----------- ------------- -------------
Year ended 31 December 2020
(Audited)
Weighted
average Earnings
number per share
Earnings of shares pence
GBP'000 '000s
------------------------------------ ----------- ------------ ------------
Basic earnings per share
Profit attributable to ordinary
shareholders 1,294 1.0p
Basic earnings per share 1,294 124,477 1.0p
------------------------------------ ----------- ------------ ------------
Diluted earnings per share
Profit attributable to ordinary
shareholders 1,294 1.0p
------------------------------------ ----------- ------------ ------------
Diluted earnings per share 1,294 126,862 1.0p
------------------------------------ ----------- ------------ ------------
Adjusted earnings
The directors believe that adjusted EBITDA, adjusted earnings
and adjusted earnings per share provide additional useful
information on underlying trends to shareholders. These measures
are used by management for internal performance analysis and
incentive compensation arrangements. The term "adjusted" is not a
defined term used under IFRS and may not therefore be comparable
with similarly titled profit measurements reported by other
companies. The principal adjustments are made in respect of the
amortisation of acquired intangibles, share based payment expense,
non-recurring items and exchange gains or losses charged to the
income statement and their related tax effects. This definition was
updated in 2020 and the comparative figure for H1 2020 is
restated.
The reconciliation between reported and underlying earnings and
basic earnings per share is shown below:
6 months 6 months Year ended
to 30 June to 30 June 31 December
2021 2020 2020
Total Total Total
(Unaudited) (Unaudited) (Audited)
Earnings Earnings Earnings
GBP'000 Pence GBP'000 Pence GBP'000 Pence
-------------------------------------- -------- ------ -------- ------- -------- ------
Reported earnings per share 984 0.8p 745 0.6p 1,294 1.0p
Amortisation of acquired intangibles
after tax - 0.0p 126 0.1p 126 0.1p
Share based payment expense 13 0.0p 27 0.0p 12 0.0p
Exchange (gains)/losses 27 0.0p (83) (0.1)p (12) 0.0p
-------- ------ -------- ------- -------- ------
Adjusted earnings per share 1,024 0.8p 815 0.6p 1,420 1.1p
-------------------------------------- -------- ------ -------- ------- -------- ------
8. INTANGIBLE ASSETS
Acquired Acquired Capitalised
customer intellectual development
Goodwill relationships property costs Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------- -------- --------------- -------------- ------------- ---------
Cost
At 1 January 2020 (audited) 3,218 4,493 3,350 4,122 15,183
Additions (unaudited) - - - 620 620
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2020 (unaudited) 3,218 4,493 3,350 4,742 15,803
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2020 (audited) 3,218 4,493 3,350 4,122 15,183
Additions (audited) - - - 1,301 1,301
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2021 (audited) 3,218 4,493 3,350 5,423 16,484
---------------------------------- -------- --------------- -------------- ------------- ---------
Additions (unaudited) - - - 711 711
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2021 (unaudited) 3,218 4,493 3,350 6,134 17,195
---------------------------------- -------- --------------- -------------- ------------- ---------
Accumulated amortisation
At 1 January 2020 (audited) - 4,337 3,350 2,825 10,512
Charge for the period (unaudited) - 156 - 405 561
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2020 (unaudited) - 4,493 3,350 3,230 11,073
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2020 (audited) - 4,337 3,350 2,825 10,512
Charge for the year (audited) - 156 - 815 971
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2021 (audited) - 4,493 3,350 3,640 11,483
Charge for the period (unaudited) - - - 415 415
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2021 (unaudited) - 4,493 3,350 4,055 11,898
---------------------------------- -------- --------------- -------------- ------------- ---------
Net book value
At 30 June 2021 (unaudited) 3,218 - - 2,079 5,297
---------------------------------- -------- --------------- -------------- ------------- ---------
At 31 December 2020 (audited) 3,218 - - 1,783 5,001
---------------------------------- -------- --------------- -------------- ------------- ---------
At 30 June 2020 (unaudited) 3,218 - - 1,512 4,730
---------------------------------- -------- --------------- -------------- ------------- ---------
At 1 January 2020 (audited) 3,218 156 - 1,297 4,671
---------------------------------- -------- --------------- -------------- ------------- ---------
The amortisation of development costs is included in research
and development expenses in the Consolidated Group Income
Statement. Within capitalised development costs there are GBP2.8
million (2020: GBP2.0 million) of fully written down assets that
are still in use.
9. CASH FLOW GENERATED FROM OPERATING ACTIVITIES
Reconciliation of profit before taxation to net cash flows from
operating activities.
6 months 6 months Year ended
to 30 June to 30 31 December
2021 June 2020 2020
Total Total Total
(Unaudited) (Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
----------------------------------------------- ------------ ----------- -------------
Profit before tax 1,003 739 1,095
Depreciation of property, plant and equipment 114 124 234
Amortisation and impairment of development
costs 415 405 815
Amortisation and impairment of acquired
intangibles - 156 156
Share based payment expense 13 6 12
Finance income - (1) (1)
Finance costs 168 195 374
Increase in inventories (134) (48) (8)
Decrease in trade and other receivables 68 124 343
Increase/(decrease) in trade and other
payables 383 (97) (536)
Net cash generated from operating activities 2,030 1,603 2,484
----------------------------------------------- ------------ ----------- -------------
10. NET FUNDS
Reconciliation of change in cash and cash equivalents to
movement in net cash:
Net cash and Other borrowings Total net
cash equivalents GBP'000 cash
GBP'000 GBP'000
------------------------------------------- ------------------ ----------------- ----------
At 1 January 2021 826 (8,550) (7,724)
Cash flow for the period before financing 1,111 - 1,111
Movement in borrowings in the period (500) 500 -
Exchange rate adjustments 7 - 7
------------------------------------------- ------------------ ----------------- ----------
Cash and cash equivalents at 30 June
2021 (Unaudited) 1,444 (8,050) (6,606)
------------------------------------------- ------------------ ----------------- ----------
At 1 January 2020 1,144 (9,550) (8,406)
Cash flow for the period before financing 710 - 710
Movement in borrowings in the period (380) 380 -
Exchange rate adjustments (79) - (79)
------------------------------------------- ------------------ ----------------- ----------
Cash and cash equivalents at 30 June
2020 (Unaudited) 1,395 (9,170) (7,775)
------------------------------------------- ------------------ ----------------- ----------
At 1 January 2020 1,144 (9,550) (8,406)
Cash flow for the year before financing 657 - 657
Movement in borrowings in the year (1,000) 1,000 -
Exchange rate adjustments 25 - 25
------------------------------------------- ------------------ ----------------- ----------
Cash and cash equivalents at 31 December
2020 (Audited) 826 (8,550) (7,724)
------------------------------------------- ------------------ ----------------- ----------
Ends
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END
IR BLGDCIUGDGBR
(END) Dow Jones Newswires
September 08, 2021 02:00 ET (06:00 GMT)
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