TIDMSKHG
RNS Number : 4855S
Sky High PLC
03 December 2012
Sky High Plc
Interim Report for the Six Months to 30 September 2012
Sky High Plc ('Sky High' or the 'Group'), the data collection
and analysis group, today announces its results for the six months
ended 30 September 2012.
Highlights
The results show turnover and profit growth compared to the
equivalent period last year despite the challenging economic
conditions.
-- Results show profit before tax for the period of GBP289k
(2011: GBP153k), reflecting a very strong trading performance
across the Group especially in the UK.
-- Group revenue up by 60% to GBP4,793k (2011: GBP2,989k)
-- Significant improvement in the UK market for traffic data
collection services, with UK Traffic revenue up by 119% to
GBP3,626k (2011: GBP1,656k)
-- Australia Traffic revenues down by 20% to GBP889k (2011: GBP1,115k) but still profitable
-- Data Capture revenue increased by 28% to GBP278k (2011: GBP218k)
-- The Board is confident that the Group is well positioned to
take advantage of opportunities as the market improves further.
For further information, please contact:
Sky High Plc WH Ireland Limited
Mark Mattison, Chief Executive Mike Coe
Officer Marc Davies
Alex Johnson, Finance Director
Tel: 01937 833 933 Tel: 0117 945 3470
Chairman's Statement
I am pleased to present the Interim Report for Sky High Plc for
the six month period ended 30 September 2012.
Results
I am delighted to report on a period of continued improvement
for Sky High Plc during the first six months of the 2012/13
financial year. The Group's profit before tax for the first six
months of the year was GBP289k compared to a profit of GBP153k for
the equivalent period last year. Other administrative expenses
include approximately GBP75k of costs associated with the
integration of Count On Us that the Directors consider to be
non-recurring. Turnover for the half year was GBP4,793k which was
an increase of 60% over the equivalent period last year (2011:
GBP2,989k).
The results reflect a very strong performance in the UK which
has been underpinned by the contribution of the Count On Us
business acquired in March 2012 and an improved market for traffic
data collection services. Turnover in the UK for the first six
months was GBP3,904k, an increase of GBP2,030k (108%), over the
same period last year.
Trading in Australia has been more challenging and revenues for
the period were GBP889k, a decrease of GBP226k (20%) on the same
period last year. Whereas the market in Australia was strong last
year, this year has seen a decline due to a slowdown in the
Australian economy and implementation of general budget and cost
reduction programmes by state governments.
Cash and cash equivalents have decreased in the period by
GBP271k which is largely due to a temporary increase in working
capital required to fund a number of high value projects for which
work is on-going or from which payment was not due as at 30
September. In addition the Group has invested GBP113k in equipment
during the period. The business is expected to generate cash for
the remainder of the financial year.
UK Traffic
Turnover in the UK Traffic business for the period increased by
119% to GBP3,626 k (2011: GBP1,656k) and the profit before tax was
GBP404k (2011:GBP60k). The improved performance from last year is
due to a number of factors including the increased market share due
to the contribution of the Count On Us business, a much improved
market for traffic data collection services and the development of
our innovative vehicle and pedestrian tracking service.
The Count On Us business has been integrated into the UK Traffic
division which is now trading as Sky High-Count on Us to reflect
the contribution and importance of both brands in the UK traffic
market. Whilst the integration is largely complete the Directors
expect further cost savings in the future which should further
reduce other administrative expenses as a percentage of sales.
Based on management accounts the Count On Us business has
contributed GBP1,065k revenue and GBP72k profit before tax in the
period.
The market improvement is illustrated by the like for like
increase in sales (excluding Count On Us) of GBP905k which is an
increase of 55% on the prior year period. The data collection
market has been stimulated by an increase in government
infrastructure spending and some high profile infrastructure
projects. This has had a positive impact on both the volume and
value of enquiries. The market improvement has also meant that the
volume of work that has been generated by our key framework
contracts has increased.
The period has also seen further growth in revenues from our
vehicle and pedestrian tracking service. As well as core traffic
data collection projects, this service has opened up new
opportunities in the pedestrian tracking market. During the period
we undertook a spectator movement monitoring project at the Olympic
and Paralympic Games. This was a high profile project for Sky High
and the experience gained will assist us in growing our market
share of the pedestrian tracking market.
The gross profit margin in the business has increased by 4% year
on year, due to less price pressure in the UK due to the improved
market.
Australia Traffic
Sky High Australia has had a more challenging start to the year.
The Australian economy has slowed down due to a lower demand for
its resources and a decrease in domestic consumption. This has
resulted in a reduction in public spending that has impacted the
demand for data collection. This has resulted in a more competitive
market and less large scale projects.
Revenues for the period at GBP889k are down 20% on the same
period last year (2011:GBP1,115k). On a positive point, despite the
revenue decline the business remains profitable and profit before
tax for the period was GBP16k (2011: GBP143k). The changes made to
the cost base in previous years and the outsourcing of analysis to
South Korea has given the business an ability to better flex its
costs in line with revenues.
The business maintains a strong focus on business development
and remains a market leading data collection business in Australia.
Whilst the economy has flattened the expectation is that it will
remain relatively stable going forward.
Data Capture
Sky High Data Capture results show a profit before tax for the
period of GBP15k (2011: GBP1k). Turnover in the period was higher
than the previous year at GBP278k (2011: GBP218k). The increased
turnover is primarily due to a 4 year contract with Transport for
London ('TfL') that commenced at the beginning of the financial
year. Gross profits in the business have declined slightly by 2%,
the major factor in this movement is connected to the TfL contract
which is lower margin than other core work due to the contract
length. Whilst the TfL contract has been a significant win for the
business it remains challenging in the current economic environment
to win core retail work.
The short term strategy for the Data Capture business is to
reduce the investment in sales and marketing so that the business
generates a profit. The Directors believe that the business will
remain stable and we will still look to grow and develop the
business where appropriate and cost effective to do so.
Head Office
The head office costs which include the costs of maintaining the
Company's listing increased in the period to GBP146k (2011:
GBP51k). The increase is primarily due to the prior year period
costs including a non-recurring credit on the settlement of a legal
claim and the re-instatement of fees for the non-executive
directors who kindly agreed to waive their fees during the previous
financial year due to difficult trading.
Dividends
The Directors maintain the view that despite the improvement in
trading, at present the business needs to retain cash to bolster
the level of working capital available to the business.
Accordingly, the Directors do not recommend the payment of an
interim dividend.
Directors and Employees
I would also like to acknowledge the continued support and
flexibility of all the Directors and the employees in our business
whose attitude and commitment have been instrumental in the
improved performance of the business.
Prospects
Despite the slow UK economy in general, the market for traffic
data collection services has improved considerably over the first
half of this financial year. This has been driven by increased
Government spending and focus on infrastructure projects including
a number of high profile rail projects. Enquiries have increased in
both quantity and value and there are more high profile, complex
projects for which Sky High has a competitive advantage in
delivering due to its size and experience. Sky High is now in a
much better position to benefit from the improved market due to its
greater geographical coverage and increased resources after the
Count On Us acquisition. The Directors are confident that the
stronger market conditions will continue at least to the end of
this financial year.
The Directors remain committed to continued investment in
business development and are continually looking to improve market
share through tendering for new major contracts and looking to
develop strategic relationships with other market participants. The
Directors are committed to continue to develop the vehicle and
pedestrian tracking service with the aim for Sky High to be the
market leader in both the traffic and pedestrian markets.
Whilst Australia has declined in this trading period the
Directors remain confident about the prospects for Australia
Traffic in the medium term. The business is well positioned in its
market and is in the prime position to benefit when the market
improves, which as we have seen in the UK, is only a matter of
time. When the market improves the Directors expect Australia
Traffic to enter another growth phase as it will look to increase
geographical coverage.
The performance since the 30 September has continued to be
strong, especially in the UK, which has continued to perform in
line with the trends described above. Whilst the second half of the
year has less work from the DfT National Road Traffic Census
contract and we expect December and January to be seasonally slow,
due to the combination of holidays and weather, the general outlook
for the second half of the year is positive.
It is expected that trading in Australia will remain challenging
but some improvement on the first half of the year is expected.
Overall, the Board remain positive about the prospects for the
Group for the remainder of the year and beyond.
Richard Jackson
Chairman
3 December 2012
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six month period to 30 September 2012
6 months 6 months 12 months
ended ended ended
30 September 30 September 31 March
2012 2011 2012
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Revenue 8 4,793 2,989 5,779
Cost of sales (3,133) (1,893) (3,647)
Gross profit 1,660 1,096 2,132
Other administrative expenses (1,357) (932) (1,929)
Profit from operating activities 8 303 164 203
Exceptional costs on acquisition - - (76)
Finance income - - 1
Finance expenses (14) (11) (48)
Profit before taxation 289 153 80
Taxation 26 (61) (49)
Profit from continuing operations 8 315 92 31
Other comprehensive loss
Loss on translation of foreign
operations (4) (16) (6)
Total comprehensive income 311 76 25
============= ============= ==========
Basic profit per ordinary
share 5 1.5p 0.7p 0.2p
============= ============= ==========
Diluted profit per ordinary
share 5 1.4p 0.7p 0.2p
============= ============= ==========
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September 2012
At 30 At 30 At 31
September September March
2012 2011 2012
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 1,062 705 1,096
Goodwill 730 730 730
Other intangible assets 156 27 179
---------- ---------- --------
Total non-current assets 1,948 1,462 2,005
---------- ---------- --------
Current assets
Trade and other receivables 2,724 1,414 1,686
Cash and cash equivalents 330 100 285
---------- ---------- --------
Total current assets 3,054 1,514 1,971
---------- ---------- --------
Total assets 8 5,002 2,976 3,976
---------- ---------- --------
Current liabilities
Bank borrowings (548) (322) (205)
Hire purchase contracts (85) (97) (115)
Trade and other payables (1,432) (796) (1,034)
Current tax payable (7) (41) -
---------- ---------- --------
Total current liabilities (2,072) (1,256) (1,354)
---------- ---------- --------
Non-current liabilities
Bank borrowings (70) - (50)
Hire purchase contracts (163) (91) (186)
Total non-current liabilities (233) (91) (236)
---------- ---------- --------
Total liabilities 8 (2,305) (1,347) (1,590)
---------- ---------- --------
Net assets 2,697 1,629 2,386
========== ========== ========
Capital and reserves
Called up share capital 1,362 1,275 1,362
Share premium account 2,376 1,655 2,376
Profit and loss account 645 391 330
Foreign Exchange reserve 88 82 92
Reverse acquisition reserve (1,774) (1,774) (1,774)
Shareholders' funds 2,697 1,629 2,386
========== ========== ========
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six month period to 30 September 2012
Called up Share
share premium Retained Exchange Reverse acquisition
capital account earnings gain reserve reserve Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the 6 months ended
30 September 2012
Unaudited
At start of period 1,362 2,376 330 92 (1,774) 2,386
Total comprehensive
income for the period - - 315 (4) - 311
At end of period 1,362 2,376 645 88 (1,774) 2,697
Called up Share
share premium Retained Exchange Reverse acquisition
capital account earnings gain reserve reserve Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the 6 months ended
30 September 2011
Unaudited
At start of period 1,275 1,655 299 98 (1,774) 1,553
Total comprehensive
income for the period - - 92 (16) - 76
At end of period 1,275 1,655 391 82 (1,774) 1,629
Called up Share
share premium Retained Exchange Reverse acquisition
capital account earnings gain reserve reserve Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
For the 12 months ended
31 March 2012
Audited
At start of period 1,275 1,655 299 98 (1,774) 1,553
Total comprehensive
income for the year - - 31 (6) - 25
Shares issued 87 739 - - - 826
Professional fees -
share issue - (18) - - - (18)
At end of period 1,362 2,376 330 92 (1,774) 2,386
UNAUDITED CONSOLIDATED STATEMENT OF CASHFLOW
For the six month period to 30 September 2012
6 months 6 months 12 months
ended ended ended
30 September 30 September 31 March
2012 2011 2012
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Net cashflow from operations 7 (134) 60 311
Taxation
Income taxes paid - (49) (45)
Cashflow from investing
activities
Acquisition of business - - (159)
Exceptional costs on acquisition - - (76)
Purchase of property, plant
and equipment (113) (107) (620)
Proceeds from disposal of
property, plant and equipment 1 - 16
Equity raised from share
issue - - 808
Interest paid (14) (11) (48)
Interest received - - 1
Net cash outflow from investing
activities (126) (118) (78)
------------- ------------- ----------
Cashflow from financing
activities
Proceeds from new bank loan 67 - 75
Repayment of bank loans (25) - -
Hire purchase repayments (53) (53) (106)
Net cash outflow from financing (11) (53) (31)
------------- ------------- ----------
Net (decrease)/increase
in cash and cash equivalents (271) (160) 157
Effect of exchange fluctuations (4) (16) (6)
Cash and cash equivalents
at beginning of period 105 (46) (46)
Cash and cash equivalents
at end of period (170) (222) 105
============= ============= ==========
NOTES TO THE ACCOUNTS
For the six month period to 30 September 2012
1 BASIS OF PREPARATION
The interim financial report comprises the results and balances
of the Company and its subsidiaries (the Group) for the six month
period ended 30 September 2012. They are unaudited and do not
comprise statutory accounts in accordance with Section 434 of the
Companies Act 2006.
The comparative period for the six months ended 30 September
2011 is also unaudited but the comparative information for the year
ended 31 March 2012 is audited and taken from the statutory
financial statements on which an audit report with an unmodified
opinion was issued.
This set of interim financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union. As required, the condensed set of financial
statements has been prepared applying the accounting policies and
presentation that were applied in the preparation of the Group's
published consolidated financial statements for the year ended 31
March 2012 and should be read in conjunction with those annual
financial statements, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union.
2 ACCOUNTING POLICIES
Basis of Accounting
The interim financial statements have been prepared applying the
accounting policies and presentation that were applied in the
preparation of the Group's published consolidated financial
statements for the year ended 31 March 2012.
These accounting policies reflect IFRS and interpretations that
are expected to be applicable to the group for its 2012/13
financial statements. It is possible that there will be changes to
these standards and interpretations before the end of the group's
2012/13 financial year, which might require adjustments to this
information before it is included in the financial statements for
the year ended 31 March 2013.
3 CRITICAL ACCOUNTING JUDGEMENTS
Impairment of goodwill
Determining whether goodwill is impaired requires an estimation
of the value in use of the cash-generating units to which goodwill
has been allocated. The value in use calculation requires the
entity to estimate the future cash flows expected to arise from the
cash-generating unit and a suitable discount rate in order to
calculate present value.
4 Dividends
The directors do not recommend the payment of an interim
dividend.
5 EARNINGS per share
The calculation is based on the earnings attributable to
ordinary shareholders divided by the weighted average number of
Ordinary Shares in issue during the period as follows:
6 months 6 months 12 months
ended ended ended
30 September 30 September 31 March
2012 2011 2012
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit for the period 315 92 31
============= ============= ==========
No. '000 No. '000 No. '000
Weighted average number of
equity shares: Basic 21,518 12,745 13,129
============= ============= ==========
Weighted average number of
equity shares: Diluted 21,987 13,053 13,357
============= ============= ==========
6 PROPERTY, PLANT AND EQUIPMENT
During the period the Group made additions amounting to GBP113k
(2011: GBP107k).
7 CASH USED IN OPERATIONS
6 months 6 months 12 months
ended ended ended
30 September 30 September 31 March
2012 2011 2012
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Results from operating activities 303 164 203
Depreciation of property,
plant and equipment 140 87 190
Amortisation of intangible
fixed assets 23 7 14
Loss on disposal of property,
plant & equipment 5 - 8
Increase in receivables (1,038) (134) (405)
Increase/(Decrease) in payables 433 (64) 301
Net cashflow from operations (134) 60 311
============= ============= ==========
8 SEGMENT ANALYSIS
The primary reporting format is by business operations and then
split by geographical area on the same basis that management
reports are prepared for the chief operating decision maker. All
operations are UK based with the exception of Australia Traffic.
The relevant segments are presented below. There were no
discontinued operations in the period.
Segment results, assets and liabilities include items directly
attributable to a segment as well as those that can be allocated on
a reasonable basis.
Australia Total
UK Traffic Traffic Data Capture Head Office for group
For the 6 months ended
30 September 2012
Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 3,626 889 278 - 4,793
=========== ========== ============= ============ ===========
Operating profit/(loss) 410 24 15 (146) 303
Finance income - - - - -
Finance expenses (6) (8) - - (14)
Profit/(loss) before
taxation 404 16 15 (146) 289
Taxation - 26 - - 26
Profit/(loss) from continuing
operations 404 42 15 (146) 315
=========== ========== ============= ============ ===========
Balance sheet
Total assets 3,104 799 207 892 5,002
=========== ========== ============= ============ ===========
Total liabilities (1,700) (335) (95) (175) (2,305)
=========== ========== ============= ============ ===========
Australia Total
UK Traffic Traffic Data Capture Head Office for group
For the 6 months ended
30 September 2011
Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 1,656 1,115 218 - 2,989
=========== ========== ============= ============ ===========
Operating profit/(loss) 63 148 1 (48) 164
Finance income - - - - -
Finance expenses (3) (5) - (3) (11)
Profit/(loss) before
taxation 60 143 1 (51) 153
Taxation - (61) - - (61)
Profit/(loss) from continuing
operations 60 82 1 (51) 92
=========== ========== ============= ============ ===========
Balance sheet
Total assets 1,220 874 114 768 2,976
=========== ========== ============= ============ ===========
Total liabilities (733) (513) (75) (26) (1,347)
=========== ========== ============= ============ ===========
Australia Total
UK Traffic Traffic Data Capture Head Office for group
For the 12 months ended
31 March 2012
Audited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 3,322 2,023 434 - 5,779
=========== ========== ============= ============ ===========
Operating profit/(loss) 189 151 (13) (124) 203
Exceptional costs - - - (76) (76)
Finance income 1 - - - 1
Finance expenses (14) (34) - - (48)
Profit/(loss) before
taxation 176 117 (13) (200) 80
Taxation - (49) - - (49)
Profit/(loss) from continuing
operations 176 68 (13) (200) 31
=========== ========== ============= ============ ===========
Balance sheet
Total assets 2,034 822 206 914 3,976
=========== ========== ============= ============ ===========
Total liabilities (895) (391) (86) (218) (1,590)
=========== ========== ============= ============ ===========
Copies of this report will be available from the Company's
website at www.skyhighplc.co.uk and the Company's registered office
at 12-14 Westgate, Tadcaster, Leeds, LS24 9AB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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