TIDMIDOX
RNS Number : 1945G
IDOX PLC
22 July 2019
IDOX plc
Half Year Results for the six months ended 30 April 2019
IDOX plc (AIM: IDOX, "Idox", "the Company" or "the Group"), a
leading supplier of specialist information management solutions and
services, today announces its unaudited half year results for the
six months ended 30 April 2019.
Financial highlights
-- Stable financial performance during a period of significant transformation.
-- Consolidated revenue for the continuing operations, excluding
our Digital business, of GBP31.5m (H1 2018: GBP31.8m)
-- Recurring revenue increased to 54% (H1 2018: 48%)
-- Adjusted EBITDA for the continuing operations, excluding our
Digital business, of GBP4.4m (H1 2018: GBP4.6m).
-- Statutory loss after tax for continuing operations of GBP2.2m
(H1 2018: loss of GBP32.5m). Loss after tax on discontinued
operations of GBP0.6m (H1 2018: GBP7.9m, including an impairment
charge of GBP6.3m).
-- Net debt of GBP25.4m as at 30 April 2019 (30 April 2018:
GBP26.0m); comprised cash of GBP6.8m, bank debt of GBP20.9m, and a
listed bond of GBP11.3m (30 April 2018: cash of GBP10.4m, bank debt
of GBP24.9m, and a listed bond of GBP11.5m).
-- The Group retains significant headroom within its existing
facilities and continues to have good support and dialogue with our
main lenders Natwest and Silicon Valley Bank.
Operational highlights
The first half of FY19 has seen extensive transformation
throughout the Group as we have addressed historical issues and
established improved operational execution, financial management
and strategic focus across all parts of the Group.
-- New Executive Directors, Chairman and Non-Executive Directors
-- Appointment of new senior managers throughout the business
-- Exit of loss-making Digital division
-- Focus on our core 3 business units of: Public Sector
Software, Engineering Information Management, and our Content
business delivering Grants, Information & Compliance
solutions
-- Rationalisation of property portfolio, with ongoing work to manage down costs
-- Transition to more appropriate accounting judgements, including revenue recognition
-- Improved operational governance and financial support throughout the Group
-- Significant increase in annuity revenue, providing improved
visibility of recurring revenues and a strong platform for future
growth.
-- Confident all material legacy issues identified and resolved;
now looking to future and strategy
Current trading
-- Stronger operational and financial performance is expected in
the second half and future years as the Group benefits from the
rationalisation work undertaken over the past 12 months.
-- Management remain confident in the outlook and prospects of
the business. Adjusted EBITDA for the full year is expected to be
similar to that reported for the Group's continuing operations for
the previous year and an increase of approximately 25% compared to
previous year Group Adjusted EBITDA of GBP11.6m including our
disposed Digital Business.
* Adjusted EBITDA is defined as earnings before amortisation,
depreciation, restructuring, acquisition, impairment, corporate
finance and share option costs.
David Meaden, Chief Executive of Idox, commented:
"My first twelve months in the business has seen a significant
transformation as we have worked closely with all of our
stakeholders to overcome the legacy issues identified and create a
more stable platform from which to build value for shareholders
customers and staff.
I am pleased by the progress we have made in such a short period
of time. We have now addressed the many legacy issues the business
faced and can focus on driving future performance, built upon our
core strengths of software and deep domain understanding.
We continue to explore ways to accelerate the Group's strategy,
and are currently assessing a strategic, earnings enhancing bolt-on
acquisition which would strongly enhance the Company's
technological capabilities and our market leading positions.
We remain confident in the outlook for the Group and remain
ambitious in securing and improving margins and cash generation. We
are focussed on growing the Group by cross-selling to our
customers, expanding the applicability of our existing products and
extending our reach to new areas where there is good opportunity to
create further value."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No 596/2014.
For further information please contact:
Enquiries:
Idox plc +44 (0) 870 333 7101
Chris Stone, Non-Executive Chairman
David Meaden, Chief Executive
Rob Grubb, Chief Financial Officer
N+1 Singer (NOMAD and Broker) +44 (0) 20 7496 3000
Shaun Dobson / Jen Boorer
Tom Salvesen (Corporate Broking)
For more information see www.idoxplc.com and @Idoxgroup
CHAIRMAN'S STATEMENT
Introduction
I was pleased to have the opportunity to join Idox in November
last year, and work with David Meaden and the rest of the Board of
Idox. The results we are announcing today do not represent the full
story of the work that has been done to deal with some historic
issues that were preventing us from driving the business forwards.
I am pleased to say that although it has taken a lot of time,
distracting Management from the real business of delivering
valuable software and services to our substantial client base, this
work is now complete. The swift and decisive action taken has
ensured that the business is now in much better shape, with a much
stronger management team and I fully expect that this will lead to
a sustained improvement in the Group's financial performance over
the coming years.
The majority of the divisions within the Group have performed
well, with particular highlights being our European based Content
Management business, which enjoyed strong growth in revenue and
profit. In addition, I am pleased to report a positive return to
growth in orders for our EIM engineering business and we expect the
improving trend to continue. Our core Public Sector business had a
quieter period while we rigorously worked through the previously
reported historic revenue recognition irregularities that were
identified. Whilst disappointing, we are reassured that these
historic issues are now resolved and we can now focus, once again,
on our service proposition and growing our market share.
I would like to thank the Finance team, led by our new CFO, Rob
Grubb, who have implemented and delivered our project to ensure
stronger oversight of our core financial management and governance.
This will remain a key focus and I am pleased to report that we
continue to benefit from strong working capital management and good
financial headroom.
Board
During the period, Rob Grubb joined us as CFO. Rob has made a
very positive contribution to the business since he joined, picking
up and dealing with many of the more entrenched historic
issues.
We appointed Oliver Scott to our Board as a Non-Executive
Director in November 2018. Oliver is a shareholder representative
of Kestrel Partners LLP. We also appointed Phil Kelly to our Board
as a Non-Executive Director in March 2019. Both Oliver and Phil
bring a lot of directly relevant experience to bear in our
discussions, and their support to me and the rest of the team is
hugely appreciated.
Laurence Vaughan, my predecessor stepped down in November 2018
after serving for 3 years as Non-Executive Chairman. Barbara
Moorhouse, who was with the Board for 3 years, stepped down at our
AGM in March 2019 and Richard Kellett-Clarke, who has held many
positions in the Group over the past 13 years, stepped down in May
2019. I would like to thank them all for their contributions over
the years.
Auditor
Deloitte LLP continue as our Auditor for the next financial
year.
Dividend
As we rebuild our business, the Board has decided that it would
not be the right moment to resume the payment of a dividend. The
Board will review the Group's future dividend policy to ensure an
appropriate payout ratio taking into consideration the Group's
expectations of future cash flow generation and long term
earnings.
Christopher Stone
Non-Executive Chairman
22 July 2019
CHIEF EXECUTIVE'S STATEMENT
Laying Strong Foundations
My first twelve months in the business have seen a significant
transformation. This has involved establishing the relevant
operational and financial disciplines necessary for a business of
Idox's stature and complexity, but which had been previously
lacking. The foundations that have now been embedded across the
business leave us well positioned in the short term and will also
support future progress against our strategic objectives.
In addition, the Board and Executive team have been overhauled
during the last 12 months and we continue to attract the talent
needed for future success.
I am pleased that Jonathan Legdon has now joined the business in
a senior management role as Chief Operating Officer. Jonathan was
Managing Director at NGA Human Resources and has a tremendous track
record in running and growing software businesses.
Andy Jones has also joined as Sales Director for the Public
Sector Business. Andy has spent the last 3 years at Capita where he
was responsible for sales in the Local Government Software
operation.
We remain confident in both the outlook for the Group and our
ambitions to improve margins in our existing business and drive
increased cash generation. We anticipate growing our Group by doing
more with our existing products and customers and extending this to
new areas where there is good opportunity to create further
value.
The Future
It is clear that the future of our business is in cloud
provisioned software and related services. We have made strides to
accelerate our move into Software-as-a-Service (SaaS) product
offerings and have had success in both our Social Care and EIM
businesses over the past six months. We will continue to accelerate
our new 'cloud first' strategy, growing recurring income streams
and future earnings visibility.
The appointments that we have made across the Group have helped
to support the hard work of our teams and we continue to raise the
bar on what can be achieved and what is expected.
I am grateful to all our employees for their hard work and
determination during this challenging period of transformation as
well as for their huge enthusiasm for the required changes we have
made to ensure that we have a strong foundation from which to
grow.
Positive Progress
The Chairman has referenced the historic issues we inherited and
the inevitable distraction that this has caused within our
day-to-day operations. However, we believe that these issues have
now been fully addressed over the last six months and we have made
substantive progress towards our goal of delivering a simplified
business and operating model.
We are sharing common infrastructure across the Group more
effectively and have sharpened our focus on the supply chain and on
serving the needs of our clients. There is always more to do, but
we believe progress has been swift and effective.
We have also implemented a number of initiatives that will have
the effect of lowering costs and overheads, whilst making the
Company more efficient in combining solutions to clients across our
chosen sectors. Our focus on the long-term visibility of recurring
and repeating revenues has been unrelenting and, alongside our
growing SaaS offering, we have made a number of operational changes
to reflect our future client service obligations and the true
recurring nature of our client contracts.
Division Review
Digital
During the period we disposed of our Digital business to
Fatmedia Limited. This area incurred losses of GBP9.1m in FY18,
including impairments of GBP6.3m. The disposal was a necessary step
in sharpening the Group's focus on its key market areas and to
ensure that resources are appropriately deployed across the
remaining businesses.
Public Sector Software
Our Public Sector Software division has seen a number of
customer successes in the period:
-- During the period we saw new Local Government client wins at
South Staffordshire and Wakefield for the EDMS product and a
further extension of the contract on behalf of the Northern Ireland
Planning Portal for our Planning Solution. This continues the
existing relationship along with additional developments of the
system.
We have also seen a number of customers enter into new long-term
contracts for existing products, for example Winchester City
Council signed a new 4-year contract for the Uniform product and a
number of other distinct products.
-- We have seen three new customers for our Social Care
Education Health and Care Hub (EHC) enabling collaboration of EHC
assessments, plans and reviews. We have also partnered with
Westminster City Council to develop an innovative new Family Hub
which enables multi-agency working with vulnerable families.
-- Our CAFM business has enjoyed a successful half year with a
number of new deals including West Midlands Combined Authority and
Serco Justice and Immigration.
-- In our Health business we signed a deal with Virgin Care
Services to provide the Lillie software in support of Cheshire West
and Chester Council and secured a long-term five-year extension for
iFIT across 3 sites within the Betsi Cadwaladr Health Board.
-- Our Transport business has signed its first agreement with
Highways England to drive integration between Urban Traffic
Management and Control systems.
-- Our Elections team supported over 100 authorities to deliver
the Local Elections and European Parliamentary election in May.
With less than 7 weeks' notice for delivering the poll, the Group
supported customers covering over 12 million electors. Idox was
contracted to print 3.8 million election documents and train 7,000
polling staff. Idox also ran managed services across 17 sites to
verify the statements and ballots of over 650,000 postal
voters.
In addition, the business won a contract from the Cabinet Office
to implement phases 1 and 2 of the government's Canvass Reform
programme, involving several hundred days of design, development,
test, deployment and support, and will allow customers to improve
their annual electoral canvass.
Engineering
Our Engineering division continues to progress with its market
leading, cloud based FusionLive offering:
-- In the first half of the year we secured a five-year contract
for our new offering FusionLive with Wood PLC to manage its
projects with Exxon Mobile.
-- NextDecade, a Liquid Natural Gas company based in US, also
contracted with us for a new FusionLive deliverables management
system.
Content
Our Content division has continued to trade strongly,
capitalising on the strong domain knowledge we hold in our key
target markets:
-- Our Compliance business delivered an innovative game-based
GDPR compliance training solution for Statkraft along with a
contract with Stada to communicate compliance training in eleven
different languages.
-- There were further wins for our RESEARCHconnect and
Grantfinder products with wins at Imperial College London, Swansea
University, a consortium of South African Universities and Orbit
Heart of England Housing & Care.
-- Our Grants team in the Netherlands had several notable
successes including contracts with BITS, N2000 and LightSense SME
II.
Outlook
Having resolved a wide range of historic issues we expect our
full year performance to be at a similar level to that reported in
FY18 for continuing operations, an increase of approximately 25%
compared to previous year Group Adjusted EBITDA of GBP11.6m
including our disposed Digital Business.
We continue to explore ways to accelerate the Group's strategy,
and are currently assessing a strategic, earnings enhancing bolt-on
acquisition which would enhance the Company's technological
capabilities and market leading positions.
We are clear that a cloud first approach across each of our
business areas is a strategic necessity and we will continue to
invest selectively to grow our capabilities and support our
customers. The business has a strong foundation in property and
asset-based solutions and this, along with our focus on a broader
SaaS provision, will underpin our future strategy and growth.
David Meaden
Chief Executive
22 July 2019
CHIEF FINANCIAL OFFICERS REVIEW
We have reviewed our revenue recognition and cost accrual
practises in the first half of FY19 to ensure our financial
performance is always representative of our actual activities
during the period, and our balance sheet properly accrues and
defers any revenues and costs associated with outstanding
performance obligations.
Our financial stability, control environment and management
information are significantly improved since the start of the
current financial year and we are generating cash as we consolidate
and improve the operational execution of the existing businesses in
our Group.
I would like to place on record my gratitude for the finance
teams who have shown strong leadership and energy during this
transition phase as we have driven change and engaged with the
wider Idox Group to provide financial expertise and support. I am
confident these changes will allow much improved quality of
financial information for the current financial year and beyond
which will lead to enhanced decision-making and improved financial
performance.
Revenues
The Group adopted IFRS 15 Revenue from Contracts with Customers
with effect from 1 November 2018 using the cumulative effect
method. The application of IFRS 15 has no impact on the lifetime
profitability or cash flows of our contracts. Instead, the
resulting changes in the timing of revenue and cost recognition
more closely aligns our financial results with the timing of the
delivery of our sales and services to our clients. Under the
cumulative effect method, the impact of the change to IFRS 15 has
been recorded as an adjustment to the opening accrued income,
deferred income and retained earnings position. The comparative
income statement figures have therefore not been restated.
The following details revenues from our operations
H1 2019 H1 2018 Variance
GBP'm GBP'm GBP'm %
Public Sector Software
(1)
- Recurring 11.4 9.6 1.8 18.7%
- Non-recurring 8.0 10.6 (2.6) -24.5%
--------- ---------
19.4 20.2 (0.8) -4.0%
Engineering Information
Management
- Recurring 3.5 3.5 - 0.0%
- Non-recurring 1.1 1.3 (0.2) -15.4%
--------- ---------
4.6 4.8 (0.2) -4.1%
Content
- Recurring 2.2 2.1 0.1 4.8%
- Non-recurring 5.3 4.7 0.6 12.8%
--------- ---------
7.5 6.8 0.7 10.3%
Total
- Recurring 17.1 15.2 1.9 12.5%
- Non-recurring 14.4 16.6 (2.2) -13.3%
--------- ---------
31.5 31.8 (0.3) -0.9%
(1) Includes Health division, previously disclosed separately
Group revenues from continuing operations fell by 0.9% to
GBP31.5m (2018: GBP31.8m).
Revenues from our Public Sector Software ("PSS") division, which
now incorporates our Health division following integration of the
6PM group, reported 4% lower revenues of GBP19.4m (2018:
GBP20.2m).
Our Engineering Information Management ("EIM") revenues fell 4%
to GBP4.6m (2018: GBP4.8m) in the period. Our EIM business
continues to transition its market propositions from
enterprise-class on-premises deployments to project-led,
cloud-based solutions with its market-leading Opidis FusionLive
platform, in line with changing market demands. As a result of this
transition, over time the EIM business will experience lower
revenues from non-recurring product revenues and associated
services, but a building base of recurring FusionLive annuity
revenues.
Revenues from our Content business increased by 10.3% to GBP7.5m
(2018: GBP6.8m), due to a strong performance in our
Netherland's-based Grants business. Our Content division
encompasses grant consultancy solutions delivered from our
Netherlands base, compliance software platforms delivered from our
teams in Germany and other parts of central Europe, and provision
of knowledge databases and bespoke research services provided by
our UK-based teams.
Recurring revenues made up 54% (2018: 48%) of all revenues in
the period. This increase is largely attributable to the revisions
in our method of allocating revenues associated with bundled
software contracts following the adoption of IFRS 15 in our PSS
division. We anticipate our proportions of recurring revenues will
continue to increase as we focus more on higher quality and
longer-term arrangements with our customers; and as the Group's
product strategy becomes more cloud native and we adopt more
SaaS-led commercial arrangements in our businesses.
Earnings
The following table sets out our adjusted and reported earnings
from our continuing activities:
H1 2019 H1 2018 Variance
GBP'm GBP'm GBP'm %
Adjusted EBITDA (1)
- Public Sector Software 3.0 3.7 (0.7) -18.7%
- Engineering Information
Management 0.5 0.2 0.3 146.3%
- Content 0.9 0.7 0.2 28.6%
--------- ---------
Total adjusted EBITDA
(1) 4.4 4.6 (0.2) -4.3%
Adjusted EBITDA (1)
margin 13.9% 14.6%
Depreciation & Amortisation (2.2) (2.5) 0.3 12.1%
Interest (0.8) (1.1) 0.3 -26.7%
--------- ---------
Adjusted profit before
taxation 0.8 1.0 0.4 40.0%
Amortisation from acquired
intangibles (2.1) (2.4) 0.3 -12.5%
Impairment - (33.3) 33.3 -100%
Exceptional items (1.3) 0.2 (1.5) -688.1%
Share-based payment
charge (0.3) (0.0) (0.3) 638.3%
Statutory loss before
taxation (2.3) (34.5) 32.2 -93.4%
(1) Adjusted EBITDA is defined as earnings before amortisation,
depreciation, restructuring, acquisition, impairment, corporate
finance and share option costs
Adjusted EBITDA for the Group fell 4% to GBP4.4m (2018:
GBP4.6m). This decrease is largely attributable to our PSS division
which, excluding low-margin revenue associated with our delivery of
services associated with the EU Elections, saw lower software and
services revenues from other parts of the division resulting in a
lower blended adjusted EBITDA contribution. Our EIM business
recorded an increase in adjusted EBITDA despite lower revenues in
the period which reflects changes to its operating model and cost
base as part of its transition to SaaS. Our Content division
recorded higher adjusted EBITDA compared to the prior year as a
result of the strong performance in its grants business.
Our adjusted EBITDA margin for the period was 13.9%, down
slightly from 14.6% given these movements in the underlying
constituent businesses. We anticipate our adjusted EBITDA margin
will improve as the Group progressively moves to higher levels of
recurring revenues and we continue to make improvements to our
business models by fully integrating prior period acquisitions,
continuing to remove all unnecessary cost and allocating capital to
our best performing businesses.
Our statutory loss before taxation for continuing activities is
significantly lower at GBP2.3m (2018: GBP34.5m) given the large
impairment charge in the prior year. We have recorded lower net
interest charges of GBP0.8m (2018: GBP1.1m) due to foreign exchange
on our Maltese listed bond in the period; lower levels of
amortisation of acquired intangibles of GBP2.1m (2018: GBP2.4m)
following the prior period impairments; higher levels of
exceptional charges as we have made structural changes to our staff
and property cost bases; and higher share-based payment charges of
GBP0.3m (2018: GBP0.0m) following the share awards to the new Board
and senior management team in 2019.
Cashflow
The following table sets out our cashflows for the period:
H1 2019 H1 2018 Variance
GBP'm GBP'm GBP'm %
Adjusted EBITDA continuing
activities 4.4 4.6 (0.2) -4.3%
Adjusted EBITDA discontinued - (1.9) 1.9 -98.0%
-------- --------
Adjusted EBITDA 4.4 2.7 1.7 63.0%
Working capital movements 5.4 9.8 (4.4) -44.9%
Exceptional items (1.3) 0.2 (1.5) -688.1%
Taxation 1.3 (0.6) 1.9 -331.6%
Acquisition of subsidiaries (0.2) (0.2) - 0.0%
Tangible Capital Expenditure (0.3) (0.4) 0.1 -27.4%
Intangible Capital Expenditure (2.2) (1.8) (0.4) 22.2%
Finance costs (0.6) (0.4) (0.2) 57.0%
Dividends - (2.7) 2.7 -99.4%
Cashflow 6.5 6.6 (0.1) -1.5%
Opening net debt (31.8) (32.6) 0.8 -2.5%
Closing net debt (25.3) (26.0) 0.7 -2.7%
Comprising:
Cash and cash equivalents 6.8 10.4 (3.6) -34.5%
Borrowings (20.8) (24.9) 4.1 -16.4%
Bonds in issue (11.3) (11.5) 0.2 -1.7%
-------- --------
(25.3) (26.0) 0.7 -2.7%
Cashflows from continuing and discontinued adjusted EBITDA was
up to GBP4.4m (2018: GBP2.7m), offset by lower working capital
movements of GBP5.4m (2018: GBP9.8m) as result of lower net accrued
and deferred revenue balances following adoption of IFRS 15. The
Group recorded higher exceptional charges of GBP1.3m (2018: credit
GBP0.2m) following the changes to staff and property. The Group
recorded strong taxation cash inflows of GBP1.3m (2018: outflow
GBP0.6m) following an exercise to review historical claims for
R&D SME credits in acquired businesses. No dividend was paid in
the period (2018: GBP2.7m).
As a result of these cashflows the Group's net debt was GBP25.3m
at the end of the period (2018: GBP26.0m). We anticipate our cash
generation will continue to improve as recurring revenues and
earnings improve, and the Group has lower exceptional charges.
The Group retains strong headroom against its committed
borrowing facilities which were GBP30.3m at the end of the period
(2018: GBP31.3m, excluding overdraft repayable on demand).
The Group's banking facility is presented as being due within
one year as the current facilities mature in February 2020. The
Group's forecasts and projections, taking account of reasonably
possible changes in trading performance, show that the Group should
be able to operate within the level of its current facility. The
Group will open renewal negotiations with the bank in due course
and has, at this stage, not sought any written commitment that the
facility will be renewed. However, the Group has held discussions
with its bankers about its future borrowing needs and no matters
have been drawn to its attention to suggest that renewal may not be
forthcoming on acceptable terms to the bank.
Rob Grubb
Chief Financial Officer
22 July 2019
Consolidated Interim Statement of Comprehensive Income
For the six months ended 30 April 2019
Restated
6 months 12 months
to to
6 months
to 30 April 30 April 31 October
2019 2018 2018
(unaudited) (unaudited) (audited)
Note GBP000 GBP000 GBP000
Revenue 3 31,457 31,826 67,443
Cost of sales (10,076) (8,521) (18,382)
------------------- ------------- -------------
Gross profit 21,381 23,305 49,061
Administrative expenses (22,846) (56,663) (77,184)
------------------- -------------
Operating loss (1,465) (33,358) (28,123)
----------------------------------------------- ----- ------------------- -------------
Analysed as:
Adjusted EBITDA* 4,391 4,645 14,417
Depreciation (403) (557) (1,106)
Amortisation (3,842) (4,362) (8,213)
Restructuring costs (1,157) (433) (436)
Acquisition credits - 681 856
Impairment - (33,255) (33,255)
Corporate finance costs (163) (30) (336)
Share option costs (291) (47) (50)
----------------------------------------------- ----- ------------------- ------------- -------------
Finance income 443 103 449
Finance costs (1,278) (1,228) (1,788)
------------------- ------------- -------------
Loss before taxation (2,300) (34,483) (29,462)
------------------- ------------- -------------
Income tax credit 5 58 1,973 2,481
------------------- ------------- -------------
Loss for the period from continuing
operations (2,242) (32,510) (26,981)
Loss for the year from discontinued
operations 6 (602) (7,943) (9,067)
------------------- ------------- -------------
Loss for the period (2,844) (40,453) (36,048)
Non-controlling interest 115 22 6
------------------- ------------- -------------
Loss for the period attributable to
the owners of the parent (2,729) (40,431) (36,042)
------------------- ------------- -------------
Other comprehensive (loss)/income for
the period
Items that will be reclassified subsequently
to profit or loss:
Exchange (losses)/gains on retranslation
of foreign operations 38 (17) (133)
------------------- ------------- -------------
Other comprehensive (loss)/income for
the period, net of tax 38 (17) (133)
------------------- ------------- -------------
Total comprehensive loss for the period
attributable to owners of the parent (2,691) (40,448) (36,175)
=================== ============= =============
Earnings per share attributable to owners
of the parent during the period
From continuing operations
Basic losses per share 7 (0.51)p (7.88)p (6.53)p
Diluted losses per share 7 (0.51)p (7.80)p (6.47)p
From continuing and discontinued operations
Basic losses per share 7 (0.66)p (9.80)p (8.72)p
Diluted losses per share 7 (0.65)p (9.71)p (8.65)p
*Adjusted EBITDA is defined as earnings before depreciation,
amortisation, restructuring costs, acquisition costs, impairment,
corporate finance costs and share option costs.
The accompanying notes form an integral part of these financial
statements.
Consolidated Interim Balance Sheet
At 30 April 2019
At
Restated Restated
30 April At At
30 April 31 October
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Non-current assets
Property, plant and equipment 1,105 1,502 1,211
Intangible assets 8 77,109 80,538 78,787
Investments 18 18 18
Deferred tax assets 3,303 1,433 1,107
Other receivables 2,968 5,621 7,036
-------------
Total non-current assets 84,503 89,112 88,159
-------------
Current assets
Stock 92 82 115
Trade and other receivables 24,273 27,972 25,690
Current Tax - - 1,084
Cash and cash equivalents 6,822 10,421 5,534
Total current assets 31,187 38,475 32,423
------------- --------------- -------------
Assets Classified as held for sale 6 - 1,552 1,114
------------- --------------- -------------
Total assets 115,690 129,139 121,696
------------- --------------- -------------
LIABILITIES
Current liabilities
Trade and other payables 7,508 9,297 7,941
Deferred consideration 2,808 934 750
Other liabilities 33,577 32,364 20,366
Provisions 272 319 90
Current tax 176 (309) -
Borrowings 20,843 24,926 3,289
------------- ---------------
Total current liabilities 65,184 67,531 32,436
------------- --------------- -------------
Liabilities directly associated with
assets classified as held for sale 6 - 652 963
Non-current liabilities
Deferred tax liabilities 3,422 4,518 3,724
Other liabilities - - 1,288
Bonds in issue 11,339 11,507 11,491
Borrowings - - 22,505
------------- --------------- -------------
Total non-current liabilities 14,761 16,025 39,008
------------- --------------- -------------
Total liabilities 79,945 84,208 72,407
------------- --------------- -------------
Net assets 35,745 44,931 49,289
============= =============== =============
EQUITY
Called up share capital 4,170 4,164 4,169
Capital redemption reserve 1,112 1,112 1,112
Share premium account 34,201 34,109 34,188
Treasury reserve (621) (621) (621)
Share option reserve 1,517 1,274 1,232
Other reserves 7,528 7,528 7,528
ESOP trust (377) (381) (399)
Foreign currency translation reserve 154 229 116
Retained earnings (11,827) (2,470) 1,961
Non-controlling interest (112) (13) 3
------------- --------------- -------------
Total equity 35,745 44,931 49,289
============= =============== =============
The accompanying notes form an integral part of these financial
statements.
Consolidated Interim Statement of Changes in Equity
For the six months ended 30 April 2019
Restated Foreign
Called Capital share Share Restated currency Restated
up redemption premium Treasury options other ESOP translation retained
share reserve account reserve reserve reserves trust reserve earnings Non-controlling Total
capital GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 interests GBP000
GBP000 GBP000
Restated Balance
at 1 November
2017 (audited) 4,145 1,112 34,109 (621) 1,730 7,528 (349) 249 40,172 9 88,084
Issue of share
capital 19 - - - - - - - - - 19
Cost of share
issue - - - - 47 - - - - - 47
Transfer on
exercise of
share
options - - - - (503) - - - 503 - -
ESOP trust - - - - - - (32) - - - (32)
Equity dividends
paid - - - - - - - - (2,717) - (2,717)
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ----------------- ---------
Transactions
with owners 19 - - - (456) - (32) - (2,214) - (2,683)
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ----------------- ---------
Profit for the
period - - - - - - - - (40,431) - (40,431)
Non-controlling
interest - - - - - - - - - (22) (22)
Other
comprehensive
income
Exchange losses
on translation
of foreign
operations - - - - - - - (20) 3 - (17)
Total
comprehensive
income
for the period - - - - - - - (20) (40,428) (22) (40,470)
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ----------------- ---------
At 30 April 2018
(unaudited) 4,164 1,112 34,109 (621) 1,274 7,528 (381) 229 (2,470) (13) 44,931
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ----------------- ---------
Issue of share
capital 5 - 79 - - - - - - - 84
Share options
charge - - - - 3 - - - - - 3
Exercise of
share options - - - - (45) - - - 45 - -
ESOP trust - - - - - - (18) - - - (18)
Transactions
with owners 5 - 79 - (42) - (18) - 45 - 69
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ----------------- ---------
Loss for the
period - - - - - - - - 4,389 - 4,389
Non-controlling
interest - - - - - - - - - 16 16
Other
comprehensive
income
Exchange gains
on translation
of foreign
operations - - - - - - - (113) (3) - (116)
Total
comprehensive
loss
for the period - - - - - - - (113) 4,386 16 4,289
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ----------------- ---------
Balance at 31
October 2018
(audited) 4,169 1,112 34,188 (621) 1,232 7,528 (399) 116 1,961 3 49,289
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ----------------- ---------
Foreign
Called Capital Share Share currency
up redemption premium Treasury options Other ESOP translation Retained
share reserve account reserve reserve reserves trust reserve earnings Non-controlling Total
capital GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 interests GBP000
GBP000 GBP000
Issue of share
capital 1 - 13 - (7) - - - 7 - 14
Share option
charge - - - - 292 - - - - - 292
ESOP trust - - - - - - 22 - - - 22
Transactions
with owners 1 - 13 - 285 - 22 - 7 - 328
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ---------------- ---------
IFRS 15 opening
adjustment - - - - - - - - (13,260) - (13,260)
IFRS 15 Deferred
Tax opening
adjustment - - - - - - - - 2,309 - 2,309
Loss for the
period - - - - - - - - (2,844) - (2,844)
Non-controlling
interest - - - - - - - - - (115) (115)
Other
comprehensive
income
Exchange losses
on translation
of foreign
operations - - - - - - - 38 - - 38
Total
comprehensive
loss
for the period - - - - - - - 38 (13,795) (115) (13,872)
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ---------------- ---------
At 30 April 2019
(unaudited) 4,170 1,112 34,201 (621) 1,517 7,528 (377) 154 (11,827) (112) 35,745
--------- ------------ --------- ---------- --------- ---------- -------- ------------ ---------- ---------------- ---------
The accompanying notes form an integral part of these financial
statements.
Consolidated Interim Statement of Cash Flows
For the six months ended 30 April 2019
6 months 6 months 12 months
to to to
30 April 30 April 31 October
2019 2018 (unaudited) 2018 (audited)
(unaudited) GBP000 GBP000
GBP000
Cash flows from operating activities
Loss for the period before taxation (2,902) (43,178) (39,205)
Adjustments for:
Depreciation of property, plant
and equipment 403 604 1,144
Amortisation of intangible assets 3,842 4,764 8,615
Acquisition credits (750) (684) (684)
Impairment - 39,530 39,530
Finance income (84) (79) (211)
Finance costs 1,308 1,063 1,531
Debt issue costs amortisation (102) 50 90
Research and development tax credit (138) (142) (832)
Share option costs 291 47 50
Movement in stock 23 80 48
Movement in trade and other receivables (895) 7,692 8,476
Movement in trade and other payables 7,509 3,806 (8,041)
-------------- -------------------- ------------------
Cash generated by operations 8,505 13,553 10,511
Net Cash generated from discontinued
operations 264 - -
Tax on profit paid 1,264 (573) (760)
Net cash from operating activities 10,033 12,980 9,751
Cash flows from investing activities
Acquisition of subsidiaries (220) (209) (209)
Purchase of property, plant and
equipment (299) (365) (606)
Purchase of intangible assets (2,201) (1,805) (3,868)
Finance income 84 79 211
------------------
Net cash used in investing activities (2,636) (2,300) (4,472)
Cash flows (used in)/generated from
financing activities
Interest paid (700) (430) (1,456)
New loans 3,000 4,500 6,500
Loan related costs (811) (90) 42
Loan repayments (7,250) (4,250) (5,500)
Equity dividends paid - (2,717) (2,717)
Sale of own shares 36 (11) 53
-------------- --------------------
Net cash flows from financing activities (5,725) (2,998) (3,078)
-------------- -------------------- ------------------
Net movement on cash and cash equivalents 1,672 7,682 2,201
Cash and cash equivalents at the
beginning of the period 5,534 3,248 3,248
Exchange (losses)/gains on cash
and cash equivalents (384) (509) 85
Cash and cash equivalents at the
end of the period 6,822 10,421 5,534
============== ==================== ==================
The accompanying notes form an integral part of these financial
statements.
Notes to the Interim Consolidated Financial Statements
For the six months ended 30 April 2019
1. GENERAL INFORMATION
Idox plc is a supplier of specialist information management
solutions to the public sector and to highly regulated asset
intensive industries around the world in the wider corporate
sector. The Company is a public limited company which is quoted on
the Alternative Investment Market and is incorporated and domiciled
in the UK. The address of its registered office is 1310 Waterside,
Arlington Business Park, Theale, Reading, RG7 4SA. The registered
number of the Company is 03984070.
2. BASIS OF PREPARATION
The financial information for the period ended 30 April 2019 set
out in this interim 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 October 2018
have been filed with the Registrar of Companies. The auditor's
report on those financial statements was modified with respect to
the comparative figures for revenue and deferred income within the
sub-group headed by 6PM Holdings plc.
The interim 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
October 2019. The Group financial statements for the year ended 31
October 2018 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.
Going Concern
It is the responsibility of the Directors to consider going
concern and to prepare the interim financial statements on this
basis unless it is inappropriate to do so. In making this
assessment the Directors are mindful of the recent challenging
trading period and have reviewed and analysed forecasts, including
reasonable forecast sensitivities, covering a period of at least 12
months from the date of this interim statement and considered its
ability to meet liabilities as they fall due.
The Group's banking facility is presented as being due within
one year as the current facilities mature in February 2020. The
Group's forecasts and projections, taking account of reasonably
possible changes in trading performance, show that the Group should
be able to operate within the level of its current facility. The
Group will open renewal negotiations with the bank in due course
and has, at this stage, not sought any written commitment that the
facility will be renewed. However, the Group has held discussions
with its bankers about its future borrowing needs and no matters
have been drawn to its attention to suggest that renewal may not be
forthcoming on acceptable terms to the bank.
To ensure the Group has sufficient liquidity the Directors have
reviewed detailed cash flow projections which are based on the
banking facilities being successfully renewed. These forecasts
include a number of different scenarios including downside
sensitivities and mitigating actions available to the Group if
required. These show that there is sufficient headroom to operate
within the current facilities, if renewed as expected, for at least
12 months from the date of this interim statement.
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.
Prior Period Adjustments
In October 2017, the finance team conducted a comprehensive
review of revenue, accrued income and debtors, and identified a
number of prior period errors which have been corrected.
In addition, in March 2019, the new management team identified a
small number of contract documentation irregularities in respect to
the 2016 year-end. As part of our more stringent approach to
contract monitoring and execution we identified three instances of
irregularities in historic customer contracts, signed and
recognised in the year ended 31 October 2016 ("FY16") that had been
inappropriately amended by a small number of employees whom have
since left the Idox Group.
Having thoroughly assessed the financial impact, the Board has
concluded that this issue is historical in nature and has no impact
on the Group's cash balances or its current year financial
performance.
The following tables summarise the impact of the prior period
errors in the financial statements of the Group:
Consolidated Balance Sheet 30 April 31 October
2018 2018
GBP000 GBP000
Net assets as originally presented 45,889 49,786
Property, plant & equipment (64) -
Deferred tax assets 1 -
Stock (3) -
Trade and other receivables (1,060) (497)
Cash and cash equivalents (12) -
Trade and other payables (100) -
Other creditors 124 -
Borrowings 156 -
Net assets as restated 44,931 49,289
3. SEGMENTAL ANALYSIS
The Group is organised into three main operating segments.
Financial information is reported to the chief operating
decision makers, which comprises the Chief Executive Officer and
the Chief Financial Officer, on a monthly basis with revenue and
operating profits split by business unit.
Each business unit is deemed an operating segment as each offers
different products and services.
-- Public Sector Software (PSS) - delivering specialist
information management solutions and services to the public sector.
This division includes Health, which delivers a broad range of
innovative solutions to the healthcare market.
-- Engineering Information Management (EIM) - delivering
engineering document management and control solutions to asset
intensive industry sectors.
-- Content (CONT) - delivering Grants, Information & Compliance solutions.
Segment revenue comprises sales to external customers and
excludes gains arising on the disposal of assets and finance
income. Segment profit reported to the Board represents the profit
earned by each segment before the allocation of taxation, Group
interest payments and Group acquisition costs. The assets and
liabilities of the Group are not reviewed by the chief operating
decision maker on a segment basis.
The Group does not place reliance on any specific customer and
has no individual customer that generates 10% or more of its total
Group revenue.
The segment revenues by geographic location were as follows:
6 months 6 months
to 30 April to 30 April
2019 2018
GBP000 GBP000
Revenues from external customers:
United Kingdom 18,567 21,926
North America 3,129 2,360
Europe 9,292 7,291
Australia 238 142
Rest of World 231 107
-------------- --------------
31,457 31,826
============== ==============
The segment results for the 6 months to 30 April 2019 were:
Continuing Discontinued
Operations Operations
PSS EIM CONT Total Digital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 19,357 4,565 7,535 31,457 - 31,457
--------- --------- --------- ------------ ------------- ---------
Profit before interest,
tax, depreciation,
amortisation, share option
costs,
acquisition costs, impairment,
and restructuring costs 3,009 486 896 4,391 - 4,391
--------- --------- --------- ------------ ------------- ---------
Depreciation (358) (35) (10) (403) - (403)
Amortisation - software
licences and R&D (1,340) (377) (93) (1,810) - (1,810)
Amortisation - acquired
intangibles (1,566) (220) (246) (2,032) - (2,032)
Restructuring costs (1,156) (1) - (1,157) - (1,157)
Share option costs (291) - - (291) - (291)
--------- --------- --------- ------------ ------------- ---------
Adjusted segment operating
profit (1,702) (147) 547 (1,302) - (1,302)
--------- --------- --------- ------------ ------------- ---------
Corporate finance costs (163) (163)
Loss from the sale of
discontinued operations - (602) (602)
Finance income 443 - 443
Finance costs (1,278) - (1,278)
Loss before Tax (2,300) (602) (2,902)
--------- --------- --------- ------------ ------------- ---------
The segment results for the 6 months to 30 April 2018 were:
Continuing Discontinued
Operations Operations
PSS EIM CONT DIG Total Digital Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 20,181 4,830 6,547 268 31,826 3,415 35,241
--------- --------- --------- --------- ------------ ------------- ---------
Profit before interest,
tax, depreciation,
amortisation, share option
costs,
acquisition costs, impairment,
and
restructuring costs 3,736 205 1,013 (309) 4,645 (1,938) 2,707
--------- --------- --------- --------- ------------ ------------- ---------
Depreciation (459) (91) (7) - (557) (47) (604)
Amortisation - software
licences and R&D (1,520) (308) (86) - (1,914) - (1,914)
Amortisation - acquired
intangibles (1,969) (233) (246) - (2,448) (402) (2,850)
Restructuring costs (88) (321) (24) - (433) (33) (466)
Acquisition costs 684 - (3) - 681 - 681
Impairment (31,455) (1,800) - - (33,255) (6,275) (39,530)
Share option costs (45) - (2) - (47) - (47)
--------- --------- --------- --------- ------------ ------------- ---------
Adjusted segment operating
profit (31,116) (2,548) 645 (309) (33,328) (8,695) (42,023)
--------- --------- --------- --------- ------------ ------------- ---------
Corporate finance costs (30) - (30)
Finance income 103 - 103
Finance costs (1,228) - (1,228)
Loss before Tax (34,483) (8,695) (43,178)
--------- --------- --------- --------- ------------ ------------- ---------
4. DIVIDS
During the period no dividend was paid in respect of the year
ended 31 October 2018 (2018: GBPNil).
The directors do not propose a dividend in respect of the
interim period ended 30 April 2019 (H1 2018: GBPNil).
5. TAX ON PROFIT ON ORDINARY ACTIVITIES
Continuing
Continuing Continuing Operations
Operations Operations 12 months
6 months 6 months to
to to 31 October
30 April 30 April 2018
2019 (unaudited) 2018 (unaudited) (audited)
GBP000 GBP000 GBP000
Current tax
Corporation tax on profits for
the period - 29 424
Foreign tax on overseas companies 167 107 274
Over provision in respect of prior
periods (23) (19) (567)
------------------ ------------------ ------------
Total current tax 144 117 131
------------
Deferred tax
Origination and reversal of timing
differences (300) (2,044) (3,020)
Adjustment for rate change 98 (42) 407
Adjustments in respect of prior
periods - (4) 1
------------------ ------------------ ------------
Total deferred tax (202) (2,090) (2,612)
------------------ ------------------ ------------
Total tax charge (58) (1,973) (2,481)
------------------ ------------------ ------------
Unrelieved trading losses of GBP4,871,000 in the UK and
GBP1,451,000 overseas remain available to offset against future
taxable trading profits (excluding unrecognised losses of
GBP641,000 in the UK and GBP9,155,000 overseas).
Discontinued
Discontinued Discontinued Operations
Operations Operations 12 months
6 months 6 months to
to to 31 October
30 April 30 April 2018
2019 (unaudited) 2018 (unaudited) (audited)
GBP000 GBP000 GBP000
Current tax
Corporation tax on profits for
the period - - -
Foreign tax on overseas companies - - -
Under provision in respect of
prior periods - 11 11
------------------- ------------------ -------------
Total current tax - 11 11
-------------
Deferred tax
Origination and reversal of timing
differences - (807) (731)
Adjustment for rate change - 44 44
Adjustments in respect of prior
periods - - -
------------------- ------------------ -------------
Total deferred tax - (763) (687)
------------------- ------------------ -------------
Total tax charge - (752) (676)
------------------- ------------------ -------------
6. DISCONTINUED OPERATIONS
On 12 September 2018 the Group resolved to seek to dispose of
the Digital division which carried out the Group's digital
consultancy operations. The disposal was effected in order to limit
the Group's exposure to future losses and liabilities and improve
the Group's working capital position. The disposal was completed on
2 November 2018, on which date control of the Digital division was
passed to the acquirer.
The results of the discontinued operations, which have been
excluded in the consolidated income statement, were as follows:
6 months 6 months 12 months
to 30 April to 30 April to 31 October
2019 2018 2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Revenue - 3,415 6,221
Expenses (602) (12,110) (15,964)
Loss before tax (602) (8,695) (9,743)
Attributable tax expense - 752 676
Net loss attributable to discontinued
operations (602) (7,943) (9,067)
============= ============= ===============
During the year, Digital contributed GBPNil (2018: loss of
GBP1,856,000) to the Group's net operating cash flows, paid GBPNil
(2018: GBPNil) in respect of investing and financing
activities.
The Digital operations have been classified as a disposal group
held for sale and presented separately on the balance sheet.
Non-current assets were fully impaired at April 2018 with an
impairment loss of GBP6.3m recognised. No further impairment loss
has been recognised on the classification of these operations held
for sale.
The major classes of assets and liabilities comprising the
operations classified as held for sale are as follows:
At 30 At 30 At 31 October
April April 2018
2019 2018
GBP000 GBP000 GBP000
Trade and other receivables - 1,552 1,114
Total assets classified as held for
sale - 1,552 1,114
-------- ------- --------------
Trade and other payables - 251 384
Other liabilities - 401 579
Total liabilities associated with
assets classified as held for sale - 652 963
-------- ------- --------------
Net assets of disposal group - 900 151
======== ======= ==============
7. EARNINGS PER SHARE
The earnings per share is calculated by reference to the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during each period, as
follows:
12 months
to
6 months 6 months 31 October
to to 2018
30 April 30 April (audited)
2019 2018
(unaudited) (unaudited) GBP000
CONTINUING OPERATIONS GBP000 GBP000
Loss for the period (2,127) (32,488) (26,975)
Basic earnings per share
Weighted average number of shares
in issue 413,932,984 412,482,918 413,116,107
Basic losses per share (0.51)p (7.88)p (6.53)p
-------------- -------------- -------------
Diluted earnings per share
Weighted average number of shares
in issue used in basic earnings
per share calculation 413,932,984 412,482,918 413,116,107
Dilutive share options 3,413,319 3,826,751 3,613,752
-------------- -------------- -------------
Weighted average number of shares
in issue used in dilutive earnings
per share calculation 417,346,303 416,309,669 416,729,859
Diluted losses per share (0.51)p (7.80)p (6.47)p
-------------- -------------- -------------
6 months 6 months 12 months
to to to
30 April 30 April 31 October
2019 2018 2018
(unaudited) (unaudited) (audited)
Adjusted earnings per share GBP000 GBP000 GBP000
Loss for the period (2,127) (32,488) (26,975)
Add back:
Amortisation on acquired intangibles 2,032 2,449 4,495
Impairment - 33,254 33,255
Acquisition credits - (681) (856)
Restructuring costs 1,157 434 435
Tax effect (606) (548) (937)
-------------- ------------- -------------
Adjusted loss for the period (after
tax) 456 2,420 9,417
-------------- ------------- -------------
Adjusted basic earnings per share 0.11p 0.59p 2.28p
Adjusted diluted earnings per share 0.11p 0.58p 2.26p
12 months
to
6 months 6 months 31 October
to to 2018
30 April 30 April (audited)
2019 2018
(unaudited) (unaudited) GBP000
DISCONTINUED OPERATIONS GBP000 GBP000
Loss for the period (602) (7,943) (9,067)
Basic earnings per share
Weighted average number of shares
in issue 413,932,984 412,482,918 413,116,107
Basic losses per share (0.15)p (1.93)p (2.19)p
-------------- -------------- ------------
Diluted earnings per share
Weighted average number of shares
in issue used in basic earnings
per share calculation 413,932,984 412,482,918 413,116,107
Dilutive share options 3,413,319 3,826,751 3,613,752
-------------- -------------- ------------
Weighted average number of shares
in issue used in dilutive earnings
per share calculation 417,346,303 416,309,669 416,729,859
Diluted losses per share (0.14)p (1.91)p (2.18)p
-------------- -------------- ------------
12 months
to
6 months 6 months 31 October
to to 2018
30 April 30 April (audited)
2019 2018
(unaudited) (unaudited) GBP000
TOTAL OPERATIONS GBP000 GBP000
Loss for the period (2,729) (40,431) (36,042)
Basic earnings per share
Weighted average number of shares
in issue 413,932,984 412,482,918 413,116,107
Basic losses per share (0.66)p (9.80)p (8.72)p
-------------- -------------- ------------
Diluted earnings per share
Weighted average number of shares
in issue used in basic earnings
per share calculation 413,932,984 412,482,918 413,116,107
Dilutive share options 3,413,319 3,826,751 3,613,752
-------------- -------------- ------------
Weighted average number of shares
in issue used in dilutive earnings
per share calculation 417,346,303 416,309,669 416,729,859
Diluted losses per share (0.65)p (9.71)p (8.65)p
-------------- -------------- ------------
6 months 6 months 12 months
to to to
30 April 30 April 31 October
2019 2018 2018
(unaudited) (unaudited) (audited)
Adjusted earnings per share GBP000 GBP000 GBP000
Loss for the period (2,729) (40,431) (36,042)
Add back:
Amortisation on acquired intangibles 2,032 2,851 4,897
Impairment - 39,530 39,530
Acquisition credits - (681) (856)
Restructuring costs 1,157 466 630
Tax effect (606) (630) (1,050)
-------------- ------------- ------------
Adjusted (loss)/profit for the
period (after tax) (146) 1,105 7,109
-------------- ------------- ------------
Adjusted basic (losses)/earnings
per share (0.04)p 0.27p 1.72p
Adjusted diluted (losses)/earnings
per share (0.03)p 0.27p 1.71p
8. INTANGIBLES
Customer Trade Development Order Customer
Goodwill relationships names Software costs backlog Lists Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 31 October
2018 45,855 13,330 4,725 5,985 8,747 145 - 78,787
Additions 8 - - 255 1,703 - 203 2,169
Disposals - - - (5) - - - (5)
Amortisation - (820) (353) (1,107) (1,516) (42) (4) (3,842)
At 30 April 2019 45,863 12,510 4,372 5,128 8,934 103 199 77,109
======== ============== ====== ======== ============= ========= ======== =======
No impairment charge was incurred during H1 2019 (H1 2018:
GBP39,530,000).
Goodwill and other intangible assets values remain consistent
with amounts held as 31 October 2018.
9. LONG-TERM INCENTIVE PLAN (LTIP)
During the year, 6,226,687 options were granted under the
Long-Term Incentive Plan.
The Group recognised a total charge of GBP115,486 (H1 2018:
GBP44,000) for equity-settled share-based payment transactions
related to the LTIP during the year. The total cost was in relation
to share options granted and GBPNil (H1 2018: GBPNil) related to
share options exercised.
The number of options in the LTIP scheme is as follows:
2019 2018
No. No.
Outstanding at the beginning of the year - 3,600,000
Granted 6,226,687 -
Forfeited - (1,700,000)
Vested - (1,900,000)
------------------------------------------ ----------- ------------
Outstanding at the end of April 2019 6,226,687 -
------------------------------------------ ----------- ------------
Exercisable at the end of April 2019 - -
------------------------------------------ ----------- ------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR LLFLVDIIIFIA
(END) Dow Jones Newswires
July 22, 2019 02:00 ET (06:00 GMT)
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