TIDMCCP
RNS Number : 2463D
Celtic PLC
26 October 2020
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Celtic PLC
Announcement of Results for the year ended 30 June 2020
SUMMARY OF THE RESULTS
Operational Highlights
-- Winner of our 9(th) consecutive SPFL Premiership title and
our 11(th) consecutive domestic trophy success
-- Winner of the Scottish League Cup for the 4(th) season in a row
-- Finished top of our Europa League group, qualifying for the
Round of 32 for the third year in a row
-- 26 (1) home matches played at Celtic Park (2019: 30 games)
Financial Highlights
-- Group revenue decreased by 15.8% to GBP70.2m (2019: GBP83.4m)
-- Operating expenses including labour decreased by 7.3% to GBP80.5m (2019: GBP86.9m)
-- Gain on sale of player registrations of GBP24.2m (2019: GBP17.7m)
-- Acquisition of player registrations of GBP20.7m (2019: GBP6.2m)
-- Profit before taxation of GBP0.1m (2019: GBP11.3m)
-- Year-end cash net of bank borrowings of GBP18.2m (2019: GBP28.6m)
(1) due to the early curtailment of the Scottish domestic
season, 4 home SPFL Premiership matches were unfulfilled.
For further information contact:
Celtic plc
Ian Bankier, Celtic Tel: 0141 551 4235
plc
Peter Lawwell,
Celtic plc
Iain Jamieson,
Celtic plc
Canaccord Genuity Limited, Nominated
Adviser
Simon Bridges Tel: 0207 523 8000
CHAIRMAN'S STATEMENT
The overwhelming event in the year under review was the
emergence of Covid-19 and the attendant restrictions on social
movement and trade. This has had an adverse impact on our
operations and our balance sheet. At the time of writing we, like
many football clubs and indeed many businesses, are still grappling
with the challenges the pandemic presents including the near term
uncertainty. However, the Board continues to monitor the situation
closely, taking proactive measures to ensure the Club and our
colleagues remain safe and is in the best position to allow
football to continue.
The SFA and the SPFL suspended football at all levels on 13(th)
March 2020. By this time, we had retained the Betfred Cup for the
fourth successive season and had reached the semi-final of the
Scottish Cup. In addition, we enjoyed a 13-point lead in the
Scottish Premiership.
As a club we were involved in discussions with the SFA and SPFL
concerning the plans for Scottish Football. Like many of our peers,
our strongest desire was to finish season 2019/20. As it became
increasingly obvious that a compromise would have to be made in
order to protect the seasonal calendar for 2020/21 and remove the
financial burden on many Scottish Clubs of an extensive and
uncertain delay, we accepted, reluctantly, that the current
season's football would have to be curtailed. This view was widely
shared across Scottish Football and we supported an SPFL resolution
which afforded the SPFL Board the power to call an end to the
season. The resolution also gave the SPFL Board the power to award
the league title based on an average points basis. On 18(th) May
2020 the SPFL formally ended the season and Celtic were declared
Champions for the ninth consecutive season. We warmly congratulate
Neil and the team for this record equalling achievement.
Unsurprisingly, Covid-19 has had a material detrimental effect
on the financial results and the year ended 30 June 2020 saw
revenue fall to GBP70.2m (2019: GBP83.4m) and profit before tax
fall to GBP0.1m (2019: GBP11.3m). As discussed in more detail in
the Strategic Report, this was largely attributable to the value
destructive impact of the pandemic across many aspects of our
business. Nevertheless, these results are satisfactory in the
circumstances at hand. Our year end cash net of bank borrowings was
GBP18.2m (2019: GBP28.6m). Post year end we also took the
opportunity to increase our existing revolving credit facility from
GBP2m to GBP13m to provide a further buffer should it ever be
required
Following the suspension of football, the Club's executive
worked successfully on developing protocols and engaging with both
the football authorities and Government authorities to have our
players return to training and to then commence season 2020/21 on
time. Additionally, they focussed on protecting our key revenue
streams and retaining our people infrastructure. I am pleased to
report that all of our commercial sponsorship arrangements are
intact and season 2020/21 saw us welcome Adidas as our new kit
supplier. The response to the launch of the Adidas products in
August was outstanding and exceeded our expectations.
The governmental restrictions imposed to protect public health
continue to have a negative financial impact on the football
industry. Our hard work and measured approach to investment in
recent years has provided a degree of protection, but given the
inherent uncertainty of the current environment, we must proceed
and invest with a degree of caution. Nevertheless, we remain
confident in the fundamentals of our football model and since the
Balance Sheet date we have strengthened our player squad. Following
the year end we invested in the registrations of Vasilis Barkas,
Albian Ajeti, David Turnbull and brought in loan signings Shane
Duffy and Diego Laxalt. We also extended the loan of Mohamed
Elyounoussi. Moreover, we have retained all of our key players from
last season.
As we look ahead, our immediate priorities are to work with the
football authorities and Government to have fans return to watching
football in our stadium in a safe manner. Having qualified for the
2020/21 UEFA Europa League against a challenging backdrop of single
leg qualification ties, we are matched against AC Milan, Lille and
Sparta Prague in what is sure to be both a testing and exciting,
group stage. Domestically, the overriding objective is to win our
tenth consecutive league title.
In closing, I sincerely thank our supporters for their
commitment to buying season tickets and also our sponsors, partners
and all of the colleagues at Celtic Football Club for their
steadfast support in these most difficult of times. Please be
assured that the Board recognises the challenges and sacrifices
made and is determined to balance the objective of success with the
strategy of long term sustainability.
Ian P Bankier, Chairman
26 October 2020
CHIEF EXECUTIVE'S REVIEW
The last six months have been an extremely challenging time for
the global economy, the global health environment, the football
industry and the Club. The adverse effect of Covid-19 has been both
deep and prolonged and the outlook is still uncertain on many
levels. Your Board has always managed the Club by balancing the
objective of delivering football success and retaining sufficient
reserves to manage downturns. Whilst the scale and impact of the
current Covid-19 crisis could never conceivably have been
predicted, our prudent strategy puts us in a better position than
many as we seek to navigate an exit from the current crisis with
the Club intact.
Being crowned champions for the ninth season in a row, winning
the Betfred Cup and reaching the semi-final of the Scottish Cup had
put us on a trajectory for yet another record breaking season
through the potential to secure a quadruple treble. We also reached
the last 32 of the Europa League for the third consecutive season.
My thanks go to Neil, his backroom team and all of the players for
their tremendous achievements. We also recognise the efforts made
by the players and coaching staff following the curtailment of
football in March in maintaining high professional standards during
"lockdown", thus putting themselves and the Club in the best
possible position when football resumed.
The last 18 months saw the Club invest record sums into the
playing squad with the key objective of maintaining our domestic
dominance and making an impact in European competition and this
strategy has been successful to date. At the beginning of last
season, we also welcomed our new head of football operations, Nick
Hammond. Nick brings a wealth of experience and has developed and
enhanced our recruitment processes yet further. The Club is now
seeing the benefits and we expect more to come. We continue to
invest into our academy to bring through the best talent in
Scotland and the transfer of Kieran Tierney to Arsenal F.C.
demonstrates the quality that our academy can produce. As football
evolves, we also strive to be at the forefront in investing into
world class technology to support football analysis, sports science
and medical care. We will continue to invest into key areas where
we believe it enhances our ability to compete at a high level. This
strategy has served us well and has resulted in us having
significant value in our playing squad that will serve us this
season and beyond. We believe that we have built a modern,
internationally recognised football club that operates to the
highest standards and one that our fans can be proud of.
The commencement of season 2020/21 has presented many
challenges; from demonstrating to the football and Government
authorities our ability to safely play matches behind closed doors,
to developing and implementing a rigorous Covid-19 player testing
regime, to negotiating single leg European qualification matches
all without the crucial backing of our fans in our stadium. Our
immediate objective was Champions League qualification, and whilst
we were disappointed not to progress to the group stages this year,
we secured Europa League football and find ourselves in a group
alongside quality opposition. We also look forward to completing
season 2019/20's Scottish Cup tournament. This involves playing a
semi-final against Aberdeen and, should we overcome this, a final
against either Heart of Midlothian F.C. or Hibernian F.C. We do not
underestimate the scale of the task at hand but if we are
successful then the history books will show an historic quadruple
treble.
The year ahead is unpredictable and Celtic are not immune to the
extent of the challenges that we could face at many levels. Whilst
we will continue to invest and not deviate from our strategy, we
are also cognisant that we may have to endure the Covid-19
restrictions for longer than we would all hope and therefore must
balance our desire to progress the Club against long-term
sustainability. The transfer market is likely to be unpredictable
as clubs around Europe struggle to adapt and many of the key
stakeholders in European football are expected to be inward facing
and adopting defensive strategies. It is important that Celtic's
interests and that of Scotland's are represented within European
football and through my role at the European Club Association, I
will continue to promote these interests.
In closing, I sincerely thank our fans for backing us in the
summer of 2020 with a remarkable response to our season ticket
campaign and the outstanding generosity shown in backing Celtic FC
Foundation's Football For Good initiative, all against a backdrop
of being unable to attend matches and an uncertain economic
environment. Your support has arguably never been more important
than the present. The dedication and sacrifices made by the support
are fully understood by both your Board and myself and are not
underestimated or taken for granted. Finally, I would like to thank
our employees for whom this has been a deeply unsettling and
uncertain time. Their commitment and dedication in the face of the
numerous challenges has been an outstanding reflection of their
character and the values of our Club.
Peter Lawwell, Chief Executive
26 October 2020
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
2020 2019
Notes GBP000 GBP000
Revenue 2 70,233 83,410
Operating expenses (before intangible asset
transactions and exceptional items) (80,549) (86,904)
Loss from trading before intangible asset transactions
and exceptional items (10,316) (3,494)
Exceptional operating expenses 3 (1,957) (1,789)
Amortisation of intangible assets (12,244) (9,709)
Profit on disposal of intangible assets 24,188 17,717
Other income - 8,795
Operating (loss) / profit (329) 11,520
Finance income 1,479 1,059
Finance expense (1,049) (1,267)
Profit before tax 101 11,312
Tax expense 5 (469) (2,574)
--------- ---------
(Loss) / profit and total comprehensive (loss)
/ income for the year (368) 8,738
Basic (loss) / earnings per Ordinary Share
for the year 6 (0.39)p 9.30p
Diluted (loss) / earnings per Share for the
year 6 (0.39)p 6.78p
CONSOLIDATED BALANCE SHEET
2020 2019
GBP000 GBP000
Assets
Non-current assets
Property, plant and equipment 58,752 58,690
Intangible assets 19,828 14,156
Trade receivables 13,527 8,089
92,107 80,935
======== ========
Current assets
Inventories 1,269 2,643
Trade and other receivables 28,478 25,426
Cash and cash equivalents 22,406 34,057
--------
52,153 62,126
======== ========
Total assets 144,260 143,061
======== ========
Equity
Issued share capital 27,166 27,157
Share premium 14,849 14,785
Other reserve 21,222 21,222
Accumulated profits 18,230 18,598
--------
Total equity 81,467 81,762
======== ========
Non-current liabilities
Borrowings 2,844 4,108
Debt element of Convertible Cumulative
Preference Shares 4,174 4,183
Trade and other payables 3,542 6,943
Lease liabilities 637 -
Provisions 272 455
Deferred tax liabilities 1,366 1,139
Deferred income 29 57
--------
12,864 16,885
======== ========
Current liabilities
Trade and other payables 20,744 13,957
Lease liabilities 604 -
Borrowings 1,364 1,364
Provisions 5,942 3,479
Deferred income 21,275 25,614
--------
49,929 44,414
======== ========
Total liabilities 62,793 61,299
======== ========
Total equity and liabilities 144,260 143,061
======== ========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Accumulated
Share Share Other (losses)/
capital premium reserve profit Total
GBP000 GBP000 GBP000 GBP000 GBP000
Equity shareholders'
funds
as at 1 July 2018 27,132 14,720 21,222 9,860 72,934
Share capital issued 1 65 - - 66
Reduction in debt element
of convertible cumulative
preference shares following
conversion 24 - - - 24
Profit and total comprehensive
income for
the year - - - 8,738 8,738
Equity shareholders'
funds
as at 30 June 2019 27,157 14,785 21,222 18,598 81,762
Share capital issued - 64 - - 64
Reduction in debt element
of convertible cumulative
preference shares following
conversion 9 - - - 9
Loss and total comprehensive
income for the year - - - (368) (368)
Equity shareholders'
funds
as at 30 June 2020 27,166 14,849 21,222 18,230 81,467
======== ======== ======== =========== ======
CONSOLIDATED CASH FLOW STATEMENT
2020 2019
Notes GBP000 GBP000
Cash flows from operating activities
(Loss) / profit for the year (368) 8,738
Taxation charge 469 2,574
Depreciation 2,640 2,064
Amortisation of intangible assets 12,244 9,709
Impairment of intangible assets 2,217 1,837
Reversal of prior period impairment charge (413) -
Profit on disposal of intangible assets (24,188) (17,717)
Net finance (income)/costs (430) 208
--------- ---------
(7,829) 7,413
Decrease / (increase) in inventories 1,374 (236)
Increase in receivables (1,656) (3,225)
Increase / (decrease) in payables and
deferred income 4,486 (6,654)
--------- ---------
Cash used in operations (3,625) (2,702)
Tax paid 5 (405) (2,435)
Net Interest received 14 7
--------- ---------
Net cash flow used in operating activities (4,016) (5,130)
--------- ---------
Cash flows from investing activities
Purchase of property, plant and equipment (1,175) (2,257)
Purchase of intangible assets (23,508) (13,671)
Proceeds from sale of intangible assets 19,603 14,040
--------- ---------
Net cash used in investing activities (5,080) (1,888)
--------- ---------
Cash flows from financing activities
Repayment of debt (1,280) (1,010)
Payments on leasing activities (798) -
Dividend on Convertible Cumulative Preference
Shares (477) (478)
--------- ---------
Net cash used in financing activities (2,555) (1,488)
--------- ---------
Net decrease in cash equivalents (11,651) (8,506)
Cash and cash equivalents at 1 July 2019 34,057 42,563
--------- ---------
Cash and cash equivalents at 30 June
2020 22,406 34,057
========= =========
NOTES TO THE FINANCIAL STATEMENTS
1. BASIS OF PREPARATION
The principal accounting policies applied in the preparation of
these Financial Statements are set out below. With the exception of
the change in accounting treatment for leases following the
implementation of IFRS16 (see below), these policies have been
consistently applied to financial years 2020 and 2019, presented,
for both the Group and the Company.
IFRS 16 Leases
IFRS 16 become effective for accounting periods beginning on or
after 1 January 2019. The Group has therefore applied the standard
for the first time for the year ended 30 June 2020 using the
modified retrospective transitional approach, whereby comparative
numbers are not restated. The reclassifications and the adjustments
arising from the new leasing rules are recognised in the opening
balance sheet on 1 July 2019.
On adoption of IFRS 16, the Group has recognised lease
liabilities in relation to leases which had previously been
classified as 'operating leases' under the principles of IAS 17
'Leases'. These liabilities were measured at the present value of
the remaining lease payments, discounted using the Group's
incremental borrowing rate as at 1 July 2019. The weighted average
incremental borrowing rate applied to the lease liabilities at 1
July 2019 was 3.82%.
The Group had no finance leases in place as at 1 July 2019 and
30 June 2020.
The Group has taken advantage of the following practical
expedients upon transition:
-- A single discount rate to be applied to a portfolio of leases
with reasonably similar characteristics, being 3.82%;
-- Reliance on its assessment of whether a lease is onerous by
applying IAS 37 immediately before the date of initial
application;
-- Exclusion of leases whose term ends within 12 months of the
date of initial application; and
-- Exclude initial direct costs from the right of use assets at
the date of initial application.
Accounting approach
From 1 July 2019, leases have been recognised as a right-of-use
asset and a corresponding liability at the date at which the leased
asset is available for use by the Group. Each lease payment is
allocated between the liability and finance cost. The finance cost
is charged to profit or loss over the lease period so as to produce
a constant periodic rate of interest on the remaining balance of
the liability for each period. The right-of-use asset is
depreciated over the shorter of the asset's useful life and the
lease term on a straight-line basis. The lease payments are
discounted using the Group's incremental borrowing rate as noted
above.
Right-of-use assets are measured at cost comprising the
following:
-- the committed lease payments due from date of recognition to the end of the lease term;
-- any other committed payments in relation to the leases
including service charges and dilapidation commitments; and
-- an applied discount factor on the above commitments equal to
the Group's cost of borrowing as noted above;
1. BASIS OF PREPARATION (CONTINUED)
On the adoption of IFRS 16 the Group recognised the right-of-use
assets and lease liabilities. This table shows the measurement
methods adopted on transition:
Classification under Right-of-use assets Lease liabilities
IAS 17
-------------------------- ---------------------------------
Operating leases Right-of-use assets are Measured at the present
that do not meet measured at an value of the
the definition of amount equal to the lease remaining lease payments,
investment property liability discounted
in IAS 40 adjusted by the amount of using the Group's incremental
any prepaid or borrowing rate as at 1 July
accrued lease payments. 2019. The Group's incremental
borrowing rate is the rate
at which a similar borrowing
could be obtained from an
independent creditor under
comparable terms and conditions.
The weighted-average rate
applied was
3.82%.
-------------------- -------------------------- ---------------------------------
The following table presents the impact of adopting IFRS 16 on
the statement of financial position as at 1 July 2019:
Adjustments As originally IFRS16 1 July 2019
presented
GBP000 GBP000 GBP000
Assets
Property, plant
and equipment 58,690 - 58,690
Right of use assets
(cost) (a) - 1,704 1,704
Impairment of right
of use asset (b) - (486) (486)
Liabilities
Onerous lease provision (b) 486 (486) -
Lease liabilities (c) - 1,704 1,704
Equity
Retained earnings - - -
(a) The right of use assets adjustment reflect those items
previously classified as operating leases.
(b) An onerous lease provision existed at 30 June 2019 relating
to 2 retail units. As at 1 July 2019 this was recorded as an
impairment against the related assets in line with the practical
expedient available under the modified retrospective approach. Note
that during the year, a re-assessment of one of the properties
resulted in this impairment being reversed and released to the
statement of comprehensive income.
1. BASIS OF PREPARATION (CONTINUED)
(c) The following table reconciles the minimum lease commitments
disclosed in the Group's financial statements for the year end 30
June 2019, to the amount of lease liabilities recognised on 1 July
2019:
GBP000
Minimum operating lease commitment at 30
June 2019 1,545
Less: short term leases not recognised under
IFRS16 (45)
Use of practical expedient regarding lease
extensions 380
-------
Undiscounted lease payments 1,880
Less: effect of discounting using 3.82% as
at the date of initial application (176)
Lease liabilities for leases classified as
operating type under IAS17 1,704
=======
The net impact on retained earnings on 1 July 2019 was
GBPnil.
The additions to the 'Land & Buildings' and 'Plant &
Vehicles' categories within 'Property, plant & equipment' are
shown separately on a separate line on Note 16. The depreciation on
the right-of-use assets is included within the total for those
categories in Note 16.
As noted above the Group had no finance leases in place as at 1
July 2019 and therefore no reclassifications took place on
transition.
Other considerations
(i) Variable lease payments
Estimation uncertainty arising from variable lease payments
One retail property lease contains variable payment terms that
are linked to sales generated from the store. The initial
measurement of the lease payment terms are based on the minimum
guaranteed payments which are in-substance fixed payments. The
variability in lease terms based on sales levels over a certain
amount will be recognised in the profit or loss when such
conditions are triggered. As such, any decrease in sales would not
affect the lease liability. The variable element of this lease is
not considered material to the financial statements.
(ii) Extension and termination options
Extension and termination options are included in a number of
the property leases. These terms are used to maximise operational
flexibility in terms of managing contracts. The majority of
extension and termination options held are exercisable only by the
Company and not by the respective lessor.
In determining the lease term, management considers all facts
and circumstances that create an economic incentive to exercise an
extension option, or not exercise a termination option. Extension
options (or periods after termination options) are only included in
the lease term if the lease is reasonably certain to be extended
(or not terminated). In all leases recognised as at 31 December
2019, the lease end date has been taken as the first available
termination date per the lease agreements.
(iii) Leases not recognised under IFRS16
Short-term leases and leases of low-value assets are recognised
on a straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of 12 months or
less. There is therefore no change in the treatment of these within
the consolidated statement of comprehensive income.
1. BASIS OF PREPARATION (CONTINUED)
Going Concern
As part of the Directors' consideration of the going concern
assumption used in preparing the Financial Statements, different
scenarios have been analysed for a minimum period of 12 months from
the date of approval of the Financial Statements with outlook
assumptions used beyond this time frame. The main factors
considered were:
-- Current financial stability of the Group and on-going access to funds;
-- Continuing restrictions on trading conditions as a result of
Covid-19, primarily the attendance of fans in football stadia;
-- Security of revenue streams;
-- First team football performance and success; and
-- Player transfer market conditions.
The Directors have adopted a prudent approach in the assumptions
used in relation to the above, in order to provide additional
comfort around the viability of the Group going forward.
At 30 June 2020 the cash net of bank borrowings was GBP18.2m. In
addition, the Group had a net receivables position with respect to
player trading payables/receivables. This provides a strong
financial base over the short to medium term. At the time of
writing the Group has secured season ticket revenues for the
financial year ended 30 June 2021, retail outlets are fully
operational and performing strongly as a result of the new
partnership with Adidas, participation in the Europa League group
stages has been secured guaranteeing a minimum level of income, and
we have clear visibility over committed labour costs and transfer
outgoings. The Group has established contracts with a number of
commercial partners and suppliers providing assurance over future
revenues and costs. In addition, the Group has in recent years,
achieved significant gains in relation to player trading and
manages the movement of players in and out of the team
strategically to ensure maximising of value where required while
maintaining a squad of appropriate quality to ensure, as far as
possible, continued on field success.
The added complexity in forecasting which has been brought on by
Covid-19 primarily relates to the attendance of football fans in
stadia, however as noted above our assumptions on this matter are
considered to be appropriately prudent and do not consider there to
be a significant risk in the medium term.
Subsequent to the end of the financial year, the Group agreed an
amended and restated GBP13m RCF with the Co-operative Bank which
remains undrawn. This provides additional access to funds in the
short to medium term should these be required. The current cash
flow forecasts over the period of the going concern review do not
show a requirement to utilise this facility.
The Group continues to perform a detailed budgeting process each
year which looks ahead four years from the current financial year,
and is reviewed and approved by the Board. The Group also
re-forecasts each month and this is distributed to the Board. As a
consequence, and in conjunction with the additional forecasting and
sensitivity analysis which has taken place, the Directors believe
that the Company is well placed to manage its business risks
successfully despite the continuing uncertain economic outlook.
In consideration of all of the above, the Directors have a
reasonable expectation that the Group and Company has adequate
resources to continue in operational existence for the foreseeable
future. Thus they continue to adopt the going concern basis of
accounting in preparing the annual Financial Statements.
2. REVENUE
2020 2019
GBP000 GBP000
The Group's revenue comprised:
Football and Stadium Operations 35,797 43,252
Merchandising 15,042 18,076
Multimedia and Other Commercial Activities 19,394 22,082
--------- ---------
70,233 83,410
========= =========
3. EXCEPTIONAL OPERATING EXPENSES
The exceptional operating expenses of GBP1.96m (2019: GBP1.79m)
can be analysed as follows:
2020 2019
GBP000 GBP000
Impairment of intangible assets and other prepaid
costs 2,351 2,017
Reversal of prior period impairment charges (423) (52)
Onerous employment contracts - 383
Onerous employment contract releases (51) (580)
Settlement agreements on contract termination 80 21
-------- --------
1,957 1,789
======== ========
The impairment of intangible assets relate to adjustments
required as a result of management's assessment of the carrying
value of certain player registrations relative to their current
market value. The carrying value of intangible assets are reviewed
against criteria indicative of impairment and, where the carrying
value exceeds their current market value, impairment is
recognised.
Onerous employment contract costs result from a situation where
the committed costs under that contract are assessed as exceeding
the economic benefits expected to be received by the Group over the
term of the contract.
Settlement agreements on contract termination are costs in
relation to exiting certain employment contracts.
4. DIVID ON CONVERTIBLE CUMULATIVE PREFERENCE SHARES
A 6% non-equity dividend of GBP0.51m (2019: GBP0.51m) was paid
on 28 August 2020 to those holders of Convertible Cumulative
Preference Shares on the share register at 31 July 2020. A number
of shareholders elected to participate in the Company's scrip
dividend reinvestment scheme for the financial year to 30 June
2020. Those shareholders have received new Ordinary Shares in lieu
of cash. No dividends were payable or proposed to be payable on the
Company's Ordinary Shares.
During the year, the Company reclaimed GBPnil (2019: GBP0.07m)
in respect of statute barred preference dividends in accordance
with the Company's Articles of Association.
5. TAX ON ORDINARY ACTIVITIES
The corporation tax receivable as at 30 June 2020 was GBP0.02m
(2019: payable of GBP0.14m). The current year tax expense was
GBP0.24m and total tax payments in the year were GBP0.40m, of which
GBP0.38m related to the current financial year and the remainder
relating to prior years. The balance potentially due from HMRC for
the current year has been offset against prior periods. The
available capital allowances pool is approximately GBP7.53m (2019:
GBP9.00m). These estimates are subject to the agreement of the
current year's corporation tax computations with H M Revenue and
Customs.
The standard rate of corporation tax for the year in the United
Kingdom is 19% (2019: 19%).
2020 2019
GBP000 GBP000
Current tax expense
UK corporation tax 262 1,355
Adjustments in respect of prior periods (20) (80)
-------- --------
Total current tax expense 242 1,435
======== ========
Deferred tax expense
Origination of temporary timing differences
(Note 20) 254 1,196
Adjustments in respect of prior periods (27) (57)
-------- --------
Total deferred tax 227 1,139
-------- --------
Total tax expense 469 2,574
======== ========
6. EARNINGS PER SHARE
Reconciliation of basic earnings to diluted 2020 2019
earnings:
GBP000 GBP000
Basic earnings (368) 8,738
Non-equity share dividend 569 570
Reclaim of statute barred non-equity share
dividends - (67)
Diluted earnings 201 9,241
========== ==========
No.'000 No.'000
Reconciliation of basic weighted average
number of ordinary shares to
diluted weighted average number of ordinary
shares:
Basic weighted average number of ordinary
shares 94,276 93,977
Dilutive effect of convertible shares 42,358 42,410
---------- ----------
Diluted weighted average number of ordinary
shares 136,634 136,387
========== ==========
Loss per share and diluted loss per share of 0.39p (2019:
earnings per share of 9.30p) has been calculated by dividing the
loss for the period of GBP0.37m (2019: profit GBP8.74m) by the
weighted average number of Ordinary Shares of 94.3m (2019: 94.0m)
in issue during the year.
7. ANNUAL REPORT & FINANCIAL STATEMENTS
Copies of the Annual Report & Financial Statements together
with the Notice and Notes of the 2020 AGM will be issued to all
shareholders in due course.
The financial information set out above does not constitute the
Company's statutory financial statements for the years ended 30
June 2020 or 30 June 2019. The Independent Auditor's Reports on the
statutory financial statements for 2020 and 2019 were unqualified,
did not draw attention to any matters by way of emphasis, and did
not contain a statement under 498(2) or 498(3) of the Companies Act
2006. The statutory financial statements for 2019 have been filed
with the Registrar of Companies and those for 2020 will be
delivered to the Registrar of Companies in due course.
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END
FR MFBFTMTJTBJM
(END) Dow Jones Newswires
October 26, 2020 12:35 ET (16:35 GMT)
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