TIDMRNWH
RNS Number : 5111H
Renew Holdings PLC
20 May 2014
Renew Holdings plc
("Renew" or the "Group" or the "Company")
Interim Results
Renew (AIM: RNWH), the Engineering Services Group supporting UK
infrastructure, announces record interim results for the six months
ended 31 March 2014, achieving strong growth in both operating
profit and revenue and reporting a strong cash position.
In line with the Company's progressive dividend policy, the
interim dividend has increased by 36% to 1.50p (H1 2013:
1.10p).
Financial Highlights
H1 2014 H1 2013
------------------------ ---------- ---------- -----
Revenue GBP225.8m GBP152.4m +48%
------------------------ ---------- ---------- -----
Adjusted operating
profit* GBP7.8m GBP4.9m** +59%
------------------------ ---------- ---------- -----
Adjusted operating
margin* 3.4% 3.2%
------------------------ ---------- ---------- -----
Adjusted profit before
tax* GBP7.6m GBP4.6m** +65%
------------------------ ---------- ---------- -----
Adjusted earnings
per share* 9.80p 5.79p** +69%
------------------------ ---------- ---------- -----
Interim dividend
per share 1.50p 1.10p +36%
------------------------ ---------- ---------- -----
*Adjusted results are shown prior to amortisation charges
**Restated to reflect IAS 19 (2011)
Operational Highlights
-- Engineering Services revenue up 53% to GBP169.2m , (H1 2013: GBP110.4m)
-- Engineering Services operating profit prior to amortisation
up 59% to GBP7.8m (H1 2013 GBP4.9m)
-- GBP8.1m cash and no debt at 31 March 2014 (2013: net debt GBP3.2m)
-- Order book up 18% to GBP427m at 31 March 2014 (H1 2013: GBP361m)
-- 17% increase in Engineering Services order book to GBP306m (H1 2013: GBP261m)
-- Interim dividend increased by 36% to 1.50p (H1 2013: 1.10p)
Post Period End Highlights
-- Entry into the growing wireless telecoms infrastructure
market through successful acquisition of Clarke Telecom Limited
R J Harrison OBE, Chairman said: "I am pleased to announce
another record set of interim results for the Group. The Group has
achieved excellent underlying organic growth together with good
cash generation. Our strategy continues to deliver shareholder
value and we have built upon this robust financial performance with
the acquisition of Clarke Telecom. The strong order book justifies
the Board's confidence that the Group will meet market expectations
for the full financial year."
Enquiries:
Renew Holdings plc Tel: 0113 281 4200
Brian May, Chief Executive
John Samuel, Group Finance
Director
Numis Securities Limited Tel: 020 7260 1000
Stuart Skinner (Nominated
Adviser)
James Serjeant (Corporate
Broker)
Walbrook PR Tel: 020 7933 8780 or renew@walbrookpr.com
Paul McManus Mob: 07980 541 893
Bob Huxford Mob: 07747 635 908
Chairman's statement
The first half of 2014 has again seen the Group deliver record
interim results, achieving strong growth in both operating profit
and revenue. These results are a positive reflection on the Group's
long term strategy of providing engineering services in regulated
markets which benefit from established spending plans.
Results
Group operating profit, prior to amortisation charges, increased
by 59% to GBP7.8m (2013: GBP4.9m), on revenue up 48% to GBP225.8m
(2013: GBP152.4m). Operating margin improved to 3.4% (2013: 3.2%)
with adjusted earnings per share increasing by 69% to 9.80p (2013:
5.79p).
Engineering Services revenue grew by 53% to GBP169.2m (2013:
GBP110.4m), representing 75% of Group revenue. Operating profit
prior to amortisation charges increased by 59% to GBP7.8m (2013:
GBP4.9m) with an operating margin of 4.6% (2013: 4.4%).
Specialist Building maintained its operating profit at GBP1.0m
(2013: GBP1.0m) on increased revenue of GBP56.6m (2013: GBP42.0m).
In Specialist Building, the Board's emphasis is on maintaining its
level of operating profit and managing risk.
Dividend
In line with its progressive policy, the Board is increasing the
interim dividend by 36% to 1.50p per share (2013: 1.10p) which will
be paid on 7 July 2014 to shareholders on the register at 6 June
2014.
Order book
The Group's order book at 31 March 2014 was GBP427m (2013:
GBP361m), an increase of 18%. The Engineering Services order book
grew by 17% to GBP306m (2013: GBP261m). The Group's expected
revenue for the second half of the financial year is fully
secured.
Acquisition of Clarke Telecom Ltd
Subsequent to the period end, the Group announced the GBP17m
acquisition of Clarke Telecom Limited ("CTL"). CTL is a leader in
the wireless telecoms infrastructure delivery market, a field which
is enjoying strong structural growth. CTL will enhance the Group's
operating margin in Engineering Services as we progress towards our
target of 5%.
Cash
The Group had no bank debt at 31 March 2014 and a strong cash
position of GBP8.1m (31 March 2013: net debt GBP3.2m). On 28 April
2014, the Group deployed GBP5m of cash to part fund the acquisition
of CTL with the remaining GBP12m consideration being funded by a
four year term loan. The Board expects further strong cash
generation from operating activities in the second half of the
financial year.
Outlook
The regulated markets in which the Group operates provide good
visibility of opportunities and a strong pipeline of work. During
the first half of the financial year our Rail business experienced
very high levels of demand, partly due to the necessary emergency
repair works following the very bad weather conditions which caused
substantial damage to the rail network most notably in the South
West of England.
The consequence of this is that the Board considers that our
first half results may prove to be slightly higher than those we
will report in the second half, both in revenue and operating
profit. The excellent underlying organic growth achieved in the
first half, subsequent acquisitive growth and strong order book
gives the Board great confidence that the Group will meet market
expectations for the full financial year.
R J Harrison OBE
Chairman
20 May 2014
Chief Executive's review
Engineering Services
Renew delivers multidisciplinary Engineering Services supporting
critical infrastructure assets in the UK. Operating in the
regulated Energy, Environmental and Infrastructure markets our
services are delivered by our directly employed highly skilled
workforce through local, independently branded businesses. We have
strong client relationships built through responsiveness in our
target markets which have high barriers to entry. We focus on
providing essential asset support in markets which have long term
established spending plans. The majority of our work is within our
clients' ongoing operating expenditure budgets providing good
visibility of spending. Much of our work is undertaken through
asset renewal and maintenance framework agreements.
During the first half of the year, Engineering Services revenue
grew by 53% to GBP169.2m (2013: GBP110.4m), representing 75% of
Group revenue. Operating profit prior to amortisation charges
increased by 59% to GBP7.8m (2013: GBP4.9m) with an operating
margin of 4.6% (2013: 4.4%).
At 31 March 2014 the Engineering Services order book was GBP306m
(2013: GBP261m), an increase of 17%.
Energy
The majority of activity in Nuclear is undertaken on the
Sellafield site where we have seen record revenue in the period
with a number of work programmes accelerating spending together
with market share gains. We remain the largest mechanical and
electrical contractor at Sellafield, where our integrated offering
focuses on providing support for the care and maintenance of
operational plant associated with waste treatment or reprocessing,
decommissioning, demolition and clean-up of redundant
facilities.
Work under the current Multi Discipline Site Works framework,
which commenced in April 2013, has seen an increase in activity
over the period and provides good visibility of future
opportunities. The framework is expected to deliver work packages
of up to GBP280m over four years where our focus is on Production
Operations Support.
The Group is well positioned on eight additional nuclear
licensed sites. At Springfields, we have experienced substantial
activity growth and our recent appointment to lead the new waste
processing facility project has broadened our service offering at
this site which also continues to present a range of ongoing
decommissioning opportunities.
In renewables, we continue to provide maintenance services for
onshore wind turbine facilities and we have successfully broadened
this service offering into the offshore wind turbine maintenance
market.
Environmental
The Group works for a number of clients in the Water sector
providing infrastructure development and engineering services
including sewer maintenance, clean and wastewater rehabilitation,
strategic water mains maintenance, trunk mains cleaning and general
utility infrastructure services.
For Northumbrian Water, work continued under the AMP 5 Major
Waste Water project framework as well as on our non-discretionary
maintenance and trunk mains cleaning frameworks where we have seen
good progress and the award of a further framework during the
period. In addition to continued workload from our framework with
Wessex Water we have also been awarded two projects on their Water
Supply Grid Improvement scheme.
Recent weather events have seen flood protection and alleviation
schemes given higher priority with an increase in spending through
a number of established frameworks for the Environment Agency.
Our relationship with the Environment Agency was strengthened
with our appointment as sole supplier to the GBP10m four year MEICA
framework for the Northern Region.
Infrastructure
In Rail, the Group provides national off-track civil, mechanical
and electrical engineering services to Network Rail, where we
continue to focus on delivering planned and reactive infrastructure
maintenance, refurbishment and renewal services.
As the only national provider of engineering maintenance
services for Network Rail, we undertake the majority of our work
under the Buildings and Civils Delivery Partnership and Asset
Management frameworks where we experienced substantial increases in
activity during the period.
Working across all ten Network Rail routes, our national 24 hour
emergency response services saw substantial demand during the
period. Our business responded admirably to support our customer
and I would like to take this opportunity to congratulate and thank
all of our staff who were involved. Emergency works included the
high profile repairs to the Great Western Mainline railway
infrastructure at Dawlish following storm damage. The work was
completed on time and the line re-opened on schedule. That project
plus other emergency works have resulted in our Rail business
experiencing higher levels of activity than are likely to be
recorded in the second half of the financial year.
Our market leading capabilities in tunnel maintenance and
refurbishment for Network Rail saw the successful completion of
schemes at Holme Tunnel and Whiteball Tunnel during the period.
Specialist Building
Specialist Building revenue was 35% higher than a year ago at
GBP56.6m (2013: GBP42.0m) with operating profit maintained at
GBP1.0m (2013: GBP1.0m). The forward order book increased by 21% to
GBP121m (2013: GBP100m).
In High Quality Residential, we are experiencing increased
demand and the Group's expertise in the challenging temporary
structural works required by many projects provides a
differentiator in this market.
The New Build Affordable Housing market in the South East
remains strong and stable with our established relationships
providing access to an advertised spend of GBP700m per annum.
Strategy
In line with the Group's strategy, our range of services in the
infrastructure market has been extended since the period end with
the acquisition of Clarke Telecom Limited ("CTL"). CTL is a leading
provider in its market and delivers all aspects of wireless
telecoms infrastructure including site acquisition and design,
construction, installation and site optimisation. CTL also carries
out site maintenance and decommissioning and has relationships with
all of the UK's cellular network operators and major network
equipment manufacturers. The wireless telecoms market has excellent
growth opportunities with increasing demand for mobile internet
access, voice and data communications including the roll out of 4G
infrastructure.
Whilst continuing to develop organic growth in Engineering
Services, the Group continues to look for earnings enhancing,
complementary acquisitions to improve and expand our range of
services.
Brian May
Chief Executive
20 May 2014
Group income statement
for the six months ended 31 March 2014
Exceptional
items
and
Amortisation Before amortisation
of exceptional of
Before intangible items intangible
amortisation assets and assets
of (see Six months amortisation (see Year
intangible Note ended of intangible Note ended
assets 3) 31 March assets 3) 30 September
2014 2014 2014 2013* 2013 2013
(Restated**) (Restated**) 2013 (Restated**)
Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
Note GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Group revenue
from continuing
activities 2 225,795 - 225,795 152,411 334,649 15,412 350,061
Cost of sales (200,218) - (200,218) (131,159) (296,232) (14,408) (310,640)
-------------- -------------- ----------- -------------- -------------- ------------- --------------
Gross profit 25,577 - 25,577 21,252 38,417 1,004 39,421
Administrative
expenses (17,811) (750) (18,561) (16,583) (27,585) (968) (28,553)
-------------- -------------- ----------- -------------- -------------- ------------- --------------
Operating profit 2 7,766 (750) 7,016 4,669 10,832 36 10,868
Finance income 74 - 74 18 25 - 25
Finance costs (149) - (149) (193) (362) - (362)
Other finance
(expense)/income
- defined
benefit pension
schemes (61) - (61) (150) 42 - 42
-------------- -------------- ----------- -------------- -------------- ------------- --------------
Profit before
income
tax 2 7,630 (750) 6,880 4,344 10,537 36 10,573
Income tax
expense 4 (1,678) 188 (1,490) (1,062) (1,778) (9) (1,787)
-------------- -------------- ----------- -------------- -------------- ------------- --------------
Profit for the
period
from continuing
activities 5,952 (562) 5,390 3,282 8,759 27 8,786
Loss for the
period
from
discontinued
operation (18) (105) (315)
----------- -------------- --------------
Profit for the
period
attributable to
equity
holders of the
parent
company 5,372 3,177 8,471
----------- -------------- --------------
Basic earnings
per share
from continuing
activities 5 8.87p 5.48p 14.64p
Diluted earnings
per
share from
continuing
activities 5 8.75p 5.24p 14.49p
----------- -------------- --------------
Basic earnings
per share 5 8.84p 5.30p 14.12p
Diluted earnings
per
share 5 8.72p 5.08p 13.97p
----------- -------------- --------------
Proposed dividend 6 1.50p 1.10p 3.60p
----------- -------------- --------------
*Operating profit for the six months ended 31 March 2013 is
after charging GBP250,000 of amortisation cost. (See Note 3)
** Comparative figures have been restated to reflect IAS 19
(2011). Details are set out in Note 1.
Group statement of comprehensive income
for the six months ended 31 March 2014
Six months ended Year ended
31 March 30 September
2014 2013 2013
(Restated**) (Restated**)
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Profit for the period attributable
to equity holders of the parent company 5,372 3,177 8,471
Items that will not be reclassified
to profit or loss:
Movements in actuarial deficit - - (6,769)
Movement on deferred tax relating
to the defined benefit pension schemes - - 1,429
---------- ------------- -------------
Total items that will not be reclassified
to profit or loss - - (5,340)
---------- ------------- -------------
Items that are or may be reclassified
subsequently to profit or loss:
Exchange movement in reserves (246) 715 (24)
---------- ------------- -------------
Total items that are or may be reclassified
subsequently to profit or loss (246) 715 (24)
---------- ------------- -------------
Total comprehensive income for the
period attributable to equity holders
of the parent company 5,126 3,892 3,107
---------- ------------- -------------
Group statement of changes in equity
for the six months ended 31 March 2014
Called Share Capital Cumulative Share Retained Total
up based
share premium redemption translation payments earnings equity
capital account reserve adjustment reserve (Restated**) Unaudited
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October 2012 5,990 5,893 3,896 775 289 (7,949) 8,894
Transfer from income
statement for the period 3,177 3,177
Dividends paid (1,258) (1,258)
Recognition of share
based payments 53 53
Exchange differences 715 715
-------- -------- ----------- ------------ --------- ------------- ----------
At 31 March 2013 5,990 5,893 3,896 1,490 342 (6,030) 11,581
Transfer from income
statement for the period 5,294 5,294
Dividends paid (659) (659)
New shares issued 150 150
Recognition of share
based payments 48 48
Exchange differences (739) (739)
Actuarial losses recognised
in pension schemes (6,769) (6,769)
Movement on deferred
tax relating to the pension
schemes 1,429 1,429
-------- -------- ----------- ------------ --------- ------------- ----------
At 30 September 2013 6,140 5,893 3,896 751 390 (6,735) 10,335
Transfer from income
statement for the period 5,372 5,372
Dividends paid (1,538) (1,538)
New shares issued 12 49 61
Recognition of share
based payments (187) (187)
Exchange differences (246) (246)
-------- -------- ----------- ------------ --------- ------------- ----------
At 31 March 2014 6,152 5,942 3,896 505 203 (2,901) 13,797
-------- -------- ----------- ------------ --------- ------------- ----------
Group balance sheet
at 31 March 2014
31 March 30 September
2014 2013 2013
(Restated**)
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Non-current assets
Intangible assets
- goodwill 33,060 26,918 33,060
- other 3,209 2,000 3,959
Property, plant and equipment 9,638 4,433 8,680
Retirement benefit assets 1,062 3,253 962
Deferred tax assets 2,819 2,535 3,051
---------- ------------- -------------
49,788 39,139 49,712
---------- ------------- -------------
Current assets
Inventories 2,920 9,449 3,195
Trade and other receivables 94,130 64,229 75,868
Current tax assets 1,243 834 1,007
Cash and cash equivalents 8,123 1,812 5,348
106,416 76,324 85,418
---------- ------------- -------------
Total assets 156,204 115,463 135,130
---------- ------------- -------------
Non-current liabilities
Obligations under finance
leases (1,779) (548) (1,984)
Retirement benefit obligations (2,172) (569) (3,545)
Deferred tax liabilities (1,036) (1,039) (1,036)
Provisions (628) (566) (628)
---------- ------------- -------------
(5,615) (2,722) (7,193)
---------- ------------- -------------
Current liabilities
Borrowings - (5,000) (2,500)
Trade and other payables (131,860) (94,483) (112,329)
Obligations under finance
leases (2,410) (577) (1,509)
Current tax liabilities (2,418) (934) (1,160)
Provisions (104) (166) (104)
(136,792) (101,160) (117,602)
---------- ------------- -------------
Total liabilities (142,407) (103,882) (124,795)
Net assets 13,797 11,581 10,335
---------- ------------- -------------
Share capital 6,152 5,990 6,140
Share premium account 5,942 5,893 5,893
Capital redemption reserve 3,896 3,896 3,896
Cumulative translation
adjustment 505 1,490 751
Share based payments
reserve 203 342 390
Retained earnings (2,901) (6,030) (6,735)
---------- ------------- -------------
Total equity 13,797 11,581 10,335
---------- ------------- -------------
Group cashflow statement
for the six months ended 31 March 2014
Six months ended Year ended
31 March 30 September
2014 2013 2013
(Restated**) (Restated**)
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Profit for the period from continuing
operating activities 5,390 3,282 8,786
Amortisation of intangible assets 750 250 500
Depreciation 1,185 513 1,288
Profit on sale of property, plant and
equipment (143) (27) (110)
Decrease in inventories 79 192 6,466
(Increase)/decrease in receivables (18,337) 9,949 2,093
Increase/(decrease) in payables 19,471 (10,047) 1,936
Current service cost in respect of defined
benefit pension scheme 29 26 53
Cash contribution to defined benefit
schemes (1,473) (1,433) (2,946)
(Credit)/expense in respect of share
options (187) 53 101
Finance income (74) (18) (25)
Finance costs and expense 210 343 320
Interest paid (149) (193) (362)
Income taxes paid (236) - (429)
Income tax expense 1,490 1,062 1,787
Net cash inflow from continuing operating
activities 8,005 3,952 19,458
Net cash outflow from discontinued operating
activities (18) (105) (220)
---------- ------------- -------------
Net cash inflow from operating activities 7,987 3,847 19,238
---------- ------------- -------------
Investing activities
Interest received 74 18 25
Proceeds on disposal of property, plant
and equipment 188 40 1,854
Purchases of property, plant and equipment (600) (52) (705)
Acquisition of subsidiaries net of cash
acquired - - (9,384)
Net cash (outflow)/inflow from investing
activities (338) 6 (8,210)
---------- ------------- -------------
Financing activities
Dividends paid (1,538) (1,258) (1,917)
Issue of Ordinary Shares 61 - 150
Loan repayments (2,500) (2,500) (5,000)
Repayment of obligations under finance
leases (892) (338) (958)
---------- ------------- -------------
Net cash outflow from financing activities (4,869) (4,096) (7,725)
---------- ------------- -------------
Net increase/(decrease) in continuing
cash and cash equivalents 2,798 (138) 3,523
Net decrease in discontinued cash and
cash equivalents (18) (105) (220)
---------- ------------- -------------
Net increase/(decrease) in cash and cash
equivalents 2,780 (243) 3,303
Cash and cash equivalents at the beginning
of the period 5,348 2,040 2,040
Effect of foreign exchange rate changes (5) 15 5
Cash and cash equivalents at the end
of the period 8,123 1,812 5,348
---------- ------------- -------------
Bank balances and cash 8,123 1,812 5,348
---------- ------------- -------------
NOTES TO THE ACCOUNTS
Note 1 - Basis of preparation
(a) The consolidated interim financial report for the six months
ended 31 March 2014 and the equivalent period in 2013 have not been
audited or reviewed by the Group's auditor. They do not comprise
statutory accounts within the meaning of Section 435 of the
Companies Act 2006. They have been prepared under the historical
cost convention and on a going concern basis in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union. This interim financial report does not comply
with IAS34 "Interim Financial Reporting", which is not currently
required to be applied for AIM companies. This interim report was
approved by the Directors on 20 May 2014.
(b) The accounts for the year ended 30 September 2013 were
prepared under IFRS and have been delivered to the Registrar of
Companies. The report of the auditor on those accounts was
unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under Section 498(2) or (3) of the
Companies Act 2006. In this report, the comparative figures for the
year ended 30 September 2013 have been audited. The comparative
figures for the period ended 31 March 2013 are unaudited.
(c) For the year ending 30 September 2014, there are no new
accounting standards, which have been adopted by the EU, applied
and implemented for this interim financial report.
For this interim financial report however, the amended IAS 19
(2011) applies for accounting periods beginning on or after 1
January 2013 which impacts the Group's 2014 results. The 2013
comparative results have been amended to reflect this change in
accounting policy which is required by changes to the standard. The
principal adjustments are:
- Pension scheme administration costs are now reported within
central administration costs (March 2013: GBP263,000, September
2013: GBP400,000). Previously these costs were reported within the
total of contributions paid to the scheme by the employer and as a
deduction from the expected return on assets.
- Expected return on assets is replaced by interest on the
assets calculated using the IAS 19 discount rate. This reduces the
interest charge for the year ended 30 September 2013 by GBP274,000
from a GBP232,000 charge to a GBP42,000 credit.
** indicates where adjustments to previously reported results
have been made as a consequence of implementing IAS 19 (2011).
(d) The Directors are satisfied that the Group has adequate
resources to continue in operational existence for the foreseeable
future.
This interim statement is being sent to all shareholders and is
also available upon request from the Company Secretary, Renew
Holdings plc, Yew Trees, Main Street North, Aberford, West
Yorkshire LS25 3AA, or via the website www.renewholdings.com.
Note 2 - Segmental analysis
Operating segments have been identified based on the internal
reporting information provided to the Group's Chief Operating
Decision Maker. From such information, Engineering Services and
Specialist Building have been determined to represent operating
segments.
Six months ended Year ended
31 March 30 September
2014 2013 2013
Unaudited Unaudited Audited
Revenue is analysed as follows: GBP000 GBP000 GBP000
Engineering Services 169,190 110,372 232,371
Specialist Building 56,605 42,039 102,521
Inter segment revenue - - (246)
---------------------------- -------------------------------- --------------
Segment revenue 225,795 152,411 334,646
Central activities - - 3
---------------------------- -------------------------------- --------------
Group revenue before exceptional
items 225,795 152,411 334,649
Exceptional revenue - - 15,412
---------------------------- -------------------------------- --------------
Group revenue from continuing
operations 225,795 152,411 350,061
---------------------------- -------------------------------- --------------
Six months ended
31 March
Before
exceptional Exceptional
items items
and and Year Ended
Before
amortisation Amortisation amortisation amortisation
of intangible of intangible of intangible of intangible
assets assets assets assets 30 September
2014 2014 2014 2013* 2013 2013 2013
(Restated**) (Restated**) (Restated**)
Unaudited Unaudited Unaudited Unaudited Audited Audited Audited
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Analysis of
operating
profit
Engineering
Services 7,764 (750) 7,014 4,645 10,646 (500) 10,146
Specialist
Building 1,005 - 1,005 994 2,083 (3,539) (1,456)
-------------- -------------- ------------ -------------- --------------- --------------- --------------
Segment
operating
profit 8,769 (750) 8,019 5,639 12,729 (4,039) 8,690
Central
activities (1,003) - (1,003) (970) (1,897) 4,075 2,178
-------------- -------------- ------------ -------------- --------------- --------------- --------------
Operating
profit 7,766 (750) 7,016 4,669 10,832 36 10,868
Net
financing
expense (136) - (136) (325) (295) - (295)
-------------- -------------- ------------ -------------- --------------- --------------- --------------
Profit
before
income tax 7,630 (750) 6,880 4,344 10,537 36 10,573
-------------- -------------- ------------ -------------- --------------- --------------- --------------
*Operating profit for the six months ended 31 March 2013 is
after charging GBP250,000 of amortisation cost. There were no
exceptional items reported in the six months ended 31 March
2013.
Note 3 - Exceptional items and amortisation of intangible
assets
Six months ended Year ended
31 March 30 September
2014 2013 2013
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Redundancy and restructuring
costs - - 272
Provision against amounts
recoverable on
old building contracts - - 2,767
Costs related to exceptional
storm damage on a building
contract - - 500
Lewis acquisition costs - - 196
Profit arising from sale
of land - - (9,190)
Write down of land stock
in the USA - - 4,919
Total gains arising from
exceptional items - - (536)
Amortisation of intangible
assets 750 250 500
---------- ------------------ -------------
750 250 (36)
---------- ------------------ -------------
Amortisation of intangible assets relates to the acquisition
of:
Amalgamated Construction
Ltd 250 250 500
Lewis Civil Engineering 500 - -
Ltd
---------- ------------------ -------------
750 250 500
---------- ------------------ -------------
Note 4 - Income tax expense
Six months ended Year ended
31 March 30 September
2014 2013 2013
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Current tax:
UK corporation tax on profits
for the period (1,258) (668) (858)
Adjustments in respect of previous
periods - - 10
---------- ---------- -------------
Total current tax (1,258) (668) (848)
Deferred tax (232) (394) (982)
---------- ---------- -------------
Income tax expense (1,490) (1,062) (1,830)
Deferred tax in respect of discontinued
operation - - 43
---------- ---------- -------------
Income tax in respect of continuing
activities (1,490) (1,062) (1,787)
---------- ---------- -------------
Note 5 - Earnings per share
Six months ended 31 March Year ended 30 September
2014 2013 2013
(Restated**) (Restated**)
Unaudited Unaudited Audited
Earnings EPS DEPS Earnings EPS DEPS Earnings EPS DEPS
GBP000 Pence Pence GBP000 Pence Pence GBP000 Pence Pence
Earnings
before
exceptional
items
and
amortisation 5,952 9.80 9.66 3,469 5.79 5.54 8,759 14.60 14.45
Exceptional
items
and
amortisation (562) (0.93) (0.91) (187) (0.31) (0.30) 27 0.04 0.04
---------- ----------- ------- --------- --------------- --------- ----- --------- --------------- -------
Basic earnings
per share -
continuing
operations 5,390 8.87 8.75 3,282 5.48 5.24 8,786 14.64 14.49
Loss for the
period from
discontinued
operation (18) (0.03) (0.03) (105) (0.18) (0.16) (315) (0.52) (0.52)
---------- ----------- ------- --------- --------------- --------- ----- --------- --------------- -------
Basic earnings
per share 5,372 8.84 8.72 3,177 5.30 5.08 8,471 14.12 13.97
---------- ----------- ------- --------- --------------- --------- ----- --------- --------------- -------
Weighted
average
number of
shares 60,766 61,594 59,899 62,593 59,998 60,624
----------- ------- --------------- --------- --------------- -------
The dilutive effect of share options is to increase the number
of shares by 828,000 (March 2013: 2,694,000; September 2013:
626,000) and reduce the basic earnings per share by 0.12p (March
2013: 0.22p; September 2013: 0.15p). On 3 February 2014 114,280 new
Ordinary shares of 10p each were issued following the exercise of
share options bringing the total number in issue to 61,517,948.
Note 6 - Dividends
The proposed interim dividend is 1.50p per share (2013: 1.10p).
This will be paid out of the Company's available distributable
reserves to shareholders on the register on 6 June 2014, payable on
7 July 2014. In accordance with IAS 1, dividends are recorded only
when paid and are shown as a movement in equity rather than as a
charge in the income statement.
Note 7 - Acquisition of subsidiary
On 29 April 2014 the Company announced that it had agreed to
acquire the entire issued share capital of Clarke Telecom Limited
("Clarke"), an engineering services business focused in the
wireless telecoms infrastructure market, for a cash consideration
of GBP17m. GBP11.9m of the total consideration was paid on 28 April
2014 and a further GBP5.1m will be paid at the end of May 2014. The
acquisition was funded from the Group's cash resources and a four
year loan of GBP12m provided by HSBC Bank plc. Further information
on the acquisition will be included in the annual report and
accounts for the year ending 30 September 2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SFAFIUFLSELI
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