TIDMELCO
RNS Number : 4790O
Eleco PLC
20 September 2013
20 September 2013
Eleco plc
("Eleco" or the "Group")
The Construction Software and Building Systems Group
Interim Results for the six month period ended 30 June 2013
Group Performance
Continuing Operations
-- Revenue of GBP13.2m (2012: GBP13.5m)
-- Adjusted operating profit of GBP1.0m before product
development costs of GBP1.3m (2012: profit of GBP1.0m before
product development costs of GBP1.1m)
-- Loss before tax of GBP0.6m (2012: Loss of GBP0.3m)
-- Loss per share - basic and diluted of 1.1p (2012: loss 0.8p)
-- EBITDA of GBP0.5m (2012: GBP0.6m)
Discontinued Operations
-- Loss for the financial period GBP2.8m (2012: loss GBP0.4m)
Group Borrowings
-- Net bank borrowings at 30 June 2013 of GBP6.3m (31 December 2012: GBP6.5m)
ElecoSoft(R)
-- Revenue of GBP8.3m (2012: GBP8.2m)
-- Adjusted operating profit of GBP2.0m before product
development costs of GBP1.3m (2012: profit of GBP2.0m before
product developments costs GBP1.1m)
-- Profit before interest and tax of GBP0.8m (2012: GBP0.9m)
-- EBITDA GBP1.1m (2012: GBP1.2m)
ElecoPrecast(R)
-- Revenue of GBP4.9m (2012: GBP5.3m)
-- Operating loss of GBP0.5m (2012: GBP0.5m)
-- EBITDA loss GBP0.2m (2012: loss GBP0.2m)
Outlook
-- The board remains optimistic about the prospects for the full
year with a positive start to the second half at ElecoSoft(R) and a
growing order book at ElecoPrecast(R).
Executive Chairman, John Ketteley said:
"It is clear from the Group's performance over the past half
year that trading conditions have been challenging.
With that being said however, the increasing signs of both an
upturn in our business and the wider economy are strongly
encouraging.
The sale in May of our loss-making building systems businesses,
alongside many other similarly tough decisions, now leaves the
Group in a far stronger position now than it has been in for many a
year. With the company's new-found ability to increasingly
capitalise on profitable growth across its divisions and markets
and with Eleco increasingly seeking to take advantage of growing
activity across the building and construction sectors, I look to
the Company regaining its poise and moving back onto the path of
sustained growth."
For further information
please contact:
Eleco plc http://www.eleco.com
John Ketteley, Executive Tel: 0207 422 0044
Chairman
Matthew Turner, Group Tel: 0207 422 0044
Finance Director
Peckwater PR
Tarquin Edwards Tel: 07879 458 364 /
0207 808 7340
Cenkos Securities plc
Nicholas Wells / Adrian Tel: 0207 397 8900
Hargrave
Chairman's Statement
Operational Review
ElecoSoft(R)
Turnover of ElecoSoft(R) for the six months to 30 June 2013 from
its software businesses in Sweden, Germany and the UK
("ElecoSoft(R) ") increased marginally to GBP8.3m (H1 2012:
GBP8.2m), despite lower turnover from our Swedish architectural
services business of GBP1.3m (H1 2012: GBP1.1m), due to lower
demand for new houses in Sweden. Furthermore, an architectural
design contract for a flagship office building in Skeleftea was
regrettably cancelled by a customer partway through the project,
this also adversely impacted revenue and profit of our Swedish
business units in the period.
ElecoSoft(R) 's share of Group turnover increased to 63 per cent
(H1 2012: 61 per cent) during the period.
I am pleased to report that in April 2013, the Group acquired
for GBP64,000 the business and certain assets of Wagemeyer, a
Germany software development company specialising in the
development of software for the timber stair design and
manufacturing markets. This acquisition enhances ElecoSoft(R) 's
StairCon existing range of staircase engineering software and will
provide it with a direct channel to the largest market for stair
design and manufacturing software in Europe.
As anticipated, the integration of these businesses initially
impacted the profitability of Wagemayer with StairCon in the short
term, due to the disruption and initial costs of amalgamating them.
The merger has been very well received by both stair manufacturers
and suppliers of computer aided machinery to the industry and we
are confident that the Wagemayer with StairCon combination will
establish itself as a leading force in the European market for
stair design and manufacturing software.
Software Development costs of ElecoSoft(R) in the period mainly
for software projects that have yet to be launched in the market
were GBP200,000 higher at GBP1.3m (H1 2012: GBP1.1m). This
accounted in some measure for ElecoSoft(R) 's EBITDA in the period
being GBP100,000 lower at GBP1.1m (H1 2012: GBP1.2m). The strong
profit growth at our UK software operations in the period was
offset by a lower profit performance from our Swedish based
software businesses due mainly to weaker markets for their products
and services.
I am pleased to say that sentiment in the UK and German
economies in which we operate continues to improve and our Swedish
colleagues also recently reported an improvement in sentiment in
the Swedish economy.
ElecoPrecast(R)
Turnover of ElecoPrecast(R) in the period under review was
somewhat lower at GBP4.9m (H1 2012: GBP5.3m), mainly due to the
extended winter conditions that affected the demand for standard
products in the first quarter and as a consequence the EBITDA loss
for ElecoPrecast(R) in the period was marginally worse at
GBP214,000 (H1 2012: loss GBP152,000).
However, the RoomSolutions(R) order for Phase 3 of Reading
University Student Accommodation which went into production at Bell
& Webster's Grantham factory in January, 2013 progressed well
and final delivery to site was made this month. Manufacturing has
also begun recently on the Northern Developments student
accommodation project for Newcastle University, the first delivery
to site being scheduled for October 2013. I am pleased to say that
earlier this month we also begun production for Galliford Try on a
student accommodation project for High Wycombe University.
This recent rise in business activity at both our
ElecoPrecast(R) sites has resulted in an increase in the workforce
since the beginning of the year from 63 to 110 and includes the
strengthening of the management teams at both locations.
Eleco Group
Group turnover from continuing operations for the six months
ended 30 June 2013 amounted to GBP13.2m (H1 2012: GBP13.5m). The
prior year comparatives in this report have been restated, where
appropriate, following the disposal of the Yaxley based
ElecoBuild(R) businesses in May 2013.
The EBITDA from continuing operations was GBP460,000 (H1 2012:
GBP611,000) after higher development expenditure on Software of
GBP1.3m (H1 2012: GBP1.1m).
Group operating loss from continuing operations was GBP220,000
(H1 2012: loss GBP115,000), after the deduction of product
development costs and the amortisation of intangible assets.
The loss before tax from continuing operations and after net
exceptional income of GBP160,000 (H1 2012: expense GBP283,000) was
GBP610,000 (H1 2012: loss GBP327,000 restated).
The loss from continuing operations for the period amounted to
GBP667,000, equivalent to 1.1p per share (H1 2012: loss GBP454,000,
equivalent to 0.8p per share).
However despite the loss for the period, there was a reduction
of GBP0.2m in the Group's net bank debt over the period from
GBP6.5m at 1 January 2013 to GBP6.3m at 30 June 2013.
In May 2013, Eleco plc ("Eleco") disposed of its loss making
ElecoBuild(R) businesses based at Yaxley, Suffolk, comprising
SpeedDeck Building Systems, Downer Cladding, Stramit Panel Products
and Prompt Profiles. The decision to sell these businesses was
prompted by the fact that these businesses would have required
significant additional cash injections to enable them to continue
trading. The Board therefore reluctantly concluded that Eleco was
no longer in a position to support financially these loss making
businesses without placing the Company's own survival in jeopardy.
In negotiating the terms of the sale, the Board secured a full TUPE
agreement for the employees of these businesses, which inevitably
had a bearing on the price achieved for the sale which gave rise to
a book loss on this asset disposal before goodwill amounting to
GBP1.7m, which is included in losses of discontinued
businesses.
The loss for the period from discontinued operations, including
the transaction loss referred to above was GBP2.8m, equivalent to
4.7p per share, (H1 2012: loss GBP405,000, equivalent to 0.6p per
share).
Dividend
The board does not propose to recommend the payment of a
dividend in respect of the period under review.
Outlook
Our UK Software interests again produced a solid profit
performance in the period under review reflecting the fact that the
UK construction industry is continuing to show increasing signs of
recovery. The UK profit performance was due principally to the
beneficial impact of the UK software business restructuring
programme that was completed at the end of last year.
ElecoSoft(R) 's office in Bangalore, India is showing positive
signs with orders received for both project management and
visualisation software within the second month of opening. Our
Indian subsidiary is tracking ahead of budget in the period under
review.
Our software development teams have the flair, creativity and
technology, to produce well-designed and relevant software programs
and in this connection are working on some exciting new projects
which include mobile applications, BIM (Building Information
Modelling) tools and Arcon Next Generation(R), a totally new
architectural software program which has evolved from our original
Arcon program, one of the most successful German visual
architectural programs in its field.
As mentioned above, the period under review also saw the
disposal of more of our loss making building systems businesses and
the ongoing recovery of ElecoPrecast(R) as a well-balanced
specialist precast concrete business.
ElecoPrecast(R) is continuing to grow its order book which
increased to GBP5.4m at 30 June 2013 (31 December 2012: GBP4.0m).
We have successfully completed the Reading University Student
Accommodation Project; and have begun two more student
accommodation projects, one for Newcastle and one for High Wycombe,
and prospects are improving with the economy.
It will be apparent from the Group's performance in the period
under review that trading conditions were very challenging,
particularly in the first quarter. That said however, we are
beginning to see increasing signs of an upturn in the markets in
which our businesses are engaged as well as in the wider economy.
This is encouraging.
The sale in May of our loss-making building systems businesses,
alongside many other similarly tough decisions, now leaves the
Group in a much stronger position now than it has been in for some
time. I believe that Eleco is now in a position to take advantage
of growing activity in both the construction software and precast
concrete markets in which it operates.
Accordingly, I look forward to Eleco regaining its poise and
taking advantage in due course of opportunities to improve the
profits of its ElecoSoft software interests and to return its
ElecoPrecast(R) interests to profit. We shall certainly be doing
all we can to achieve these objectives.
John Ketteley
Executive Chairman
20 September 2013
Condensed Consolidated Income Statement
for the financial period ended 30 June 2013
6 months to 30
June Year Ended
-----------------------------
2012 31 December
(unaudited
2013 - 2012
(unaudited) restated) (restated)
Notes GBP'000 GBP'000 GBP'000
--------------------------- ------ ------------ ----------- ------------
Continuing operations
Revenue 3 13,150 13,499 24,830
Cost
of sales (5,017) (5,171) (8,877)
Gross
profit 8,133 8,328 15,953
Distribution
costs (519) (633) (1,271)
Administrative
expenses (7,994) (7,527) (14,179)
Operating (loss)/profit
before exceptionals 3 (380) 168 503
Exceptional items 5 160 (283) (1,449)
Loss from operations 3 (220) (115) (946)
Finance income 6 3 24 19
Finance
cost 6 (393) (236) (512)
Loss before tax (610) (327) (1,439)
Tax (57) (127) 79
Loss for the financial
period from continuing
operations (667) (454) (1,360)
Loss for the financial
period from discontinued
operations 4 (2,799) (405) (1,387)
Loss for the
financial period (3,466) (859) (2,747)
--------------------------- ------ ------------ ----------- ------------
Attributable
to:
Equity holders
of the parent (3,466) (859) (2,747)
--------------------------- ------ ------------ ----------- ------------
Loss per share - basic
and diluted
Continuing operations 7 (1.1) p (0.8) p (2.3) p
Discontinued
operations 7 (4.7) p (0.7) p (2.3) p
Total operations 7 (5.8) p (1.5) p (4.6) p
--------------------------- ------ ------------ ----------- ------------
Condensed Consolidated Statement of Comprehensive Income
for the financial period ended 30 June 2013
6 months to Year
30 June Ended
-------------------------
2012 31 December
(unaudited
2013 - 2012
(unaudited) restated) (restated)
GBP'000 GBP'000 GBP'000
------------------------------ ------------ ----------- ------------
Loss for the
period (3,466) (859) (2,747)
Other comprehensive
income
Actuarial loss on retirement
benefit obligation (354) (367) (2,475)
Deferred tax on
retirement benefit
obligation 81 (11) 99
Other gains/(losses)
on retirement benefit
obligation 303 - (81)
Translation differences
on foreign operations 2 (26) (101)
Other comprehensive
income net of tax 32 (404) (2,558)
Total comprehensive income
for the period (3,434) (1,263) (5,305)
------------------------------- ------------ ----------- ------------
Attributable
to:
Equity holders
of the parent (3,434) (1,263) (5,305)
------------------------------- ------------ ----------- ------------
Condensed Consolidated Statement of Changes in Equity
for the financial period ended 30 June 2013
Share Share Merger Translation Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ --------- --------- --------- ------------ --------- ---------- --------
At 1 January 2013 6,066 6,396 7,371 (214) (358) (10,411) 8,850
Transactions with
owners - - - - - - -
--------- --------- --------- ------------ --------- ---------- --------
Loss for the period - - - - - (3,466) (3,466)
Other comprehensive
income:
Actuarial loss on
defined benefit
pension scheme net
of tax and other
scheme gains - - - - - 30 30
Exchange differences
on translation of
net investments
in foreign operations - - - 2 - - 2
Total comprehensive
income for the period - - - 2 - (3,436) (3,434)
--------- --------- --------- ------------ --------- ---------- --------
At 30 June 2013
(unaudited) 6,066 6,396 7,371 (212) (358) (13,847) 5,416
========= ========= ========= ============ ========= ========== ========
Share Share Merger Translation Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ --------- --------- --------- ------------ --------- ---------- --------
At 1 January 2012 6,066 6,396 7,371 (113) (358) (5,207) 14,155
Transactions with
owners - - - - - - -
--------- --------- --------- ------------ --------- ---------- --------
Loss for the period - - - - - (859) (859)
Other comprehensive
income:
Actuarial loss on
defined benefit
pension scheme net
of tax and other
scheme losses - - - - - (378) (378)
Exchange differences
on translation of
net investments
in foreign operations - - - (26) - - (26)
Total comprehensive
income for the period - - - (26) - (1,237) (1,263)
--------- --------- --------- ------------ --------- ---------- --------
At 30 June 2012
(unaudited) 6,066 6,396 7,371 (139) (358) (6,444) 12,892
========= ========= ========= ============ ========= ========== ========
Share Share Merger Translation Other Retained
capital premium reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ --------- --------- --------- ------------ --------- ---------- --------
At 1 January 2012 6,066 6,396 7,371 (113) (358) (5,207) 14,155
Transactions with
owners - - - - - - -
--------- --------- --------- ------------ --------- ---------- --------
Loss for the period - - - - - (2,747) (2,747)
Other comprehensive
income:
Actuarial loss on
defined benefit
pension scheme net
of tax and other
scheme losses - - - - - (2,457) (2,457)
Exchange differences
on translation of
net investments
in foreign operations - - - (101) - - (101)
Total comprehensive
income for the period - - - (101) - (5,204) (5,305)
--------- --------- --------- ------------ --------- ---------- --------
At 31 December 2012 6,066 6,396 7,371 (214) (358) (10,411) 8,850
========= ========= ========= ============ ========= ========== ========
Condensed Consolidated Balance Sheet
at 30 June 2013
30 June
--------------------------
2013 2012 31 December
(unaudited) (unaudited) 2012
Notes GBP'000 GBP'000 GBP'000
------------------------------- ------ ------------ ------------ ------------
Non-current
assets
Goodwill 12,676 13,622 13,009
Other intangible
assets 1,743 2,129 1,904
Property, plant and
equipment 6,218 7,570 7,223
Deferred tax
assets 1,538 1,194 1,389
Other non-current
assets - 865 -
Total non-current
assets 22,175 25,380 23,525
------------------------------- ------ ------------ ------------ ------------
Current assets
Inventories 903 2,254 2,144
Trade and other receivables 5,324 7,084 6,905
Current tax
assets 157 85 5
Cash and cash equivalents 1,170 1,673 888
Other current
assets 800 460 800
Total current
assets 8,354 11,556 10,742
------------------------------- ------ ------------ ------------ ------------
Total assets 30,529 36,936 34,267
------------------------------- ------ ------------ ------------ ------------
Current liabilities
Bank overdraft 8 (3,425) (3,633) (4,501)
Borrowings 8 (400) (900) (900)
Obligations under
finance leases (234) (161) (212)
Trade and other payables (4,466) (5,285) (4,962)
Provisions (255) (20) (256)
Current tax
liabilities (111) (191) (56)
Accruals and deferred
income (5,449) (5,432) (5,819)
Total current
liabilities (14,340) (15,622) (16,706)
------------------------------- ------ ------------ ------------ ------------
Non-current
liabilities
Borrowings 8 (3,600) (2,475) (2,025)
Obligations under
finance leases (204) (379) (319)
Deferred tax
liabilities (122) (396) (170)
Non-current
provisions (70) (86) (77)
Other non-current
liabilities (94) (111) (85)
Retirement benefit
obligation (6,683) (4,975) (6,035)
Total non-current
liabilities (10,773) (8,422) (8,711)
------------------------------- ------ ------------ ------------ ------------
Total liabilities (25,113) (24,044) - (25,417)
------------------------------- ------ ------------ ------------ ------------
Net assets 5,416 12,892 8,850
=============================== ====== ============ ============ ============
Equity
Share capital 6,066 6,066 6,066
Share premium
account 6,396 6,396 6,396
Merger reserve 7,371 7,371 7,371
Translation
reserve (212) (139) (214)
Other reserve (358) (358) (358)
Retained earnings (13,847) (6,444) (10,411)
Equity attributable to shareholders
of the parent 5,416 12,892 8,850
======================================= ============ ============ ============
Condensed Consolidated Statement of Cash Flows
for the financial period ended 30 June 2013
6 months to Year
30 June Ended
--------------------------
2013 2012 31 December
(unaudited) (unaudited) 2012
Notes GBP'000 GBP'000 GBP'000
---------------------------------- ------ ------------ ------------ ------------
Cash flows from operating
activities
Loss before tax (including
discontinued operations) (3,409) (626) (2,641)
Net finance costs 390 197 480
Depreciation and impairment
charge 493 556 1,004
Amortisation and impairment
charge 243 260 1,210
Loss/(profit) on sale of property,
plant and equipment 169 (4) (114)
Loss on sale
of businesses 2,153 - -
Retirement benefit
obligation - (402) (803)
(Decrease)/increase in
provisions (8) (27) 200
Cash generated/(used) in operations
before working capital movements 31 (46) (664)
Decrease in trade and other
receivables 276 1,517 3,438
(Increase)/decrease in inventories
and work in progress (578) 24 134
Increase/(decrease) in trade
and other payables 501 (2,163) (4,854)
Cash generated/(used) in
operations 230 (668) (1,946)
Interest paid (90) (66) (239)
Interest received 3 26 34
Income tax paid (208) (238) (396)
Net cash outflow from operating
activities (65) (946) (2,547)
---------------------------------- ------ ------------ ------------ ------------
Net cash used in investing
activities
Purchase of intangible
assets (48) (64) (149)
Purchase of property, plant
and equipment (59) (129) (157)
Acquisition of subsidiary
undertakings net of cash
acquired 9 (82) (46) (192)
Proceeds from sale of property,
plant, equipment and intangible
assets 504 45 393
Sale of businesses net
of expenses 159 - 400
Net cash inflow/(outflow) from
investing activities 474 (194) 295
------------------------------------------ ------------ ------------ ------------
Net cash used in financing
activities
Proceeds from new
bank loan 4,000 - -
Repayment of bank
loans (2,925) (5,450) (5,900)
Repayments of obligations under
finance leases (155) (86) (170)
Net cash inflow/(outflow) from
financing activities 920 (5,536) (6,070)
------------------------------------------ ------------ ------------ ------------
Net increase/(decrease)
in cash and cash equivalents 1,329 (6,676) (8,322)
---------------------------------- ------ ------------ ------------ ------------
Cash and cash equivalents at
beginning of period (3,613) 4,748 4,748
Effects of changes in foreign
exchange rates 29 (32) (39)
Cash and cash equivalents
at end of period (2,255) (1,960) (3,613)
---------------------------------- ------ ------------ ------------ ------------
Cash and cash equivalents
comprise:
Cash and short term
deposits 1,170 1,673 888
Bank overdrafts (3,425) (3,633) (4,501)
(2,255) (1,960) (3,613)
---------------------------------- ------ ------------ ------------ ------------
Notes to the Condensed Consolidated Interim Financial
Statements
1. General information
The company is a public limited company incorporated and
domiciled in the UK. The address of its registered office is 66
Clifton Street, London, EC2A 4HB.
The company is listed on the Alternative Investment Market
("AIM")
The condensed consolidated interim financial information does
not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. The Group's consolidated financial statements
for the year ended 31 December 2012 have been filed and the audit
report was not qualified and did not contain a statement under
section 498(2) or section 498(3) of the Companies Act 2006.
2. Basis of preparation
The condensed consolidated interim financial statements for the
six months to 30 June 2013 have been prepared in accordance with
the accounting policies which will be applied in the twelve months
financial statements to 31 December 2013. These accounting policies
are drawn up in accordance with International Accounting Standards
(IAS) and International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board and as
adopted for use in the European Union that are effective at 30 June
2013.
The condensed consolidated interim financial statements are
unaudited and have not been subject to review. They do not include
all the information and disclosures required in the annual
financial statements, and therefore should be read in conjunction
with the Group's published financial statements as at 31 December
2012.
In accordance with IFRS 5, the prior year comparative figures
for the six months to 30 June 2012 and the year ended 31 December
2012 have been restated to reflect discontinued operations reported
in the Group's consolidated financial statements for the six months
to 30 June 2013. The comparative figures for the year ended 31
December 2012 are not the Company's statutory accounts for that
period but have been extracted from these accounts.
The Directors, having considered the Group's current financial
resources, have concluded that they are adequate for the Group's
present requirements. Thus the condensed consolidated interim
financial information has been prepared on the going concern
basis.
New accounting standards and interpretations are effective for
the first time in the current period but have had no impact on the
results or financial position of the Group. Furthermore, new
standards, new interpretations and amendments to standards and
interpretations that have been issued but are not effective for the
current period have not been adopted early.
Estimates
Application of the Group's accounting policies in preparing
condensed consolidated interim financial statements requires
management to make judgements and estimates that affect the
reported amount of assets and liabilities, revenues and expenses.
Actual results may ultimately differ from these estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the
consolidated financial statements for the year ended 31 December
2012.
Risks and uncertainties
A summary of the Group's principal risks and uncertainties was
provided on page 13 of the 2012 report and accounts. The Board
considers these risks and uncertainties are still relevant to the
current financial year and the impact of changes in the UK economy
is reviewed in the Chairman's statement contained in this
report.
3. Segmental information
Operating segments
For management purposes, the Group is organised into two
operating divisions based on the type of products and services
supplied by each business unit.
The principal activities of each segment are as follows:
ElecoSoft: Developer and supplier of resource management
software, building project software, design and engineering
software and 3D design software.
ElecoPrecast: Manufacturer and supplier of precast concrete
rooms, retaining walls, terracing units and pre-stressed and
precast retaining structures.
Central costs that cannot reasonably be allocated to the
operating divisions are reported under Corporate.
six months to 30
June 2013 (unaudited)
Continuing
ElecoSoft ElecoPrecast Corporate Elimination operations
---------- ------------- ---------- ------------ ------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 8,299 4,851 - - 13,150
Inter-segment revenue - - - - -
Total segment revenue 8,299 4,851 - - 13,150
------------------------- ---------- ------------- ---------- ------------ ------------
Adjusted operating
profit/(loss) 2,223 (483) (612) 1,128
Product development (1,264) (1) - (1,265)
Amortisation of
intangible assets (197) (46) - (243)
Operating profit/(loss)
before exceptionals 762 (530) (612) (380)
Restructuring costs - (2) 162 160
Segment result 762 (532) (450) (220)
Net finance cost (390)
Loss before tax (610)
Tax (57)
------------------------- ---------- ------------- ---------- ------------ ------------
Loss after tax (667)
------------------------- ---------- ------------- ---------- ------------ ------------
six months to 30
June 2012 (unaudited)
Continuing
ElecoSoft ElecoPrecast Corporate Elimination operations
---------- ------------- ---------- ------------ ------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 8,207 5,292 - - 13,499
Inter-segment revenue 37 - - (37) -
Total segment revenue 8,244 5,292 - (37) 13,499
------------------------- ---------- ------------- ---------- ------------ ------------
Adjusted operating
profit/(loss) 2,227 (236) (444) 1,547
Product development (1,118) (1) - (1,119)
Amortisation of
intangible assets (206) (54) - (260)
Operating profit/(loss)
before exceptionals 903 (291) (444) 168
Restructuring costs (1) (220) (62) (283)
Segment result 902 (511) (506) (115)
Net finance cost (212)
Loss before tax (327)
Tax (127)
------------------------- ---------- ------------- ---------- ------------ ------------
Loss after tax (454)
------------------------- ---------- ------------- ---------- ------------ ------------
twelve months to 31 December
2012 (restated)
Continuing
ElecoSoft ElecoPrecast Corporate Elimination operations
---------- ------------- ---------- ------------ ------------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 15,779 9,051 - - 24,830
Inter-segment revenue 42 7 - (49) -
Total segment revenue 15,821 9,058 - (49) 24,830
------------------------- ---------- ------------- ---------- ------------ ------------
Adjusted operating
profit/(loss) 4,176 (245) (872) 3,059
Product development (2,024) (4) - (2,028)
Amortisation of
intangible assets (359) (110) (59) (528)
Operating profit/(loss)
before exceptionals 1,793 (359) (931) 503
Impairment charges - (46) - (46)
Restructuring costs (152) (874) (377) (1,403)
Segment result 1,641 (1,279) (1,308) (946)
Net finance cost (493)
Loss before tax (1,439)
Tax 79
------------------------- ---------- ------------- ---------- ------------ ------------
Loss after tax (1,360)
------------------------- ---------- ------------- ---------- ------------ ------------
Geographical segments
Segment revenue by geographical segment represents revenue from
external customers based on the geographical location of the
customer.
Year
ended
6 months to 30
June 31 December
------------------
2013 2012 2012
GBP'000 GBP'000 GBP'000
---------------- -------- -------- ------------
UK 6,651 7,079 12,482
Scandinavia 4,364 4,389 8,209
Germany 1,215 1,189 2,181
Rest of Europe 768 745 1,707
Rest of World 152 97 251
13,150 13,499 24,830
-------- -------- ------------
4. Discontinued operations
During the six months to 30 June 2013, the Group sold the
following business units within its ElecoBuild division and they
are no longer part of the Group:
SpeedDeck Building May
Systems sold 2013
May
Downer Cladding sold 2013
May
Prompt Profiles sold 2013
Stramit Panel May
Products sold 2013
------------------- ----- ------
All of these businesses have been presented as discontinued
operations in the income statement and the management are of the
view that this presentation of information enables the users of the
financial statements to understand the financial effects of these
operations no longer being part of the Group.
The results from discontinued operations which have been
included in the income statement are set out below:
Year ended
6 months to 30
June 31 December
------------------
2013 2012 2012
GBP'000 GBP'000 GBP'000
-------------------------- -------- -------- ------------
Revenue 3,234 4,860 9,375
Cost of sales (2,918) (3,708) (7,193)
Gross profit 316 1,152 2,182
Distribution
costs (222) (315) (623)
Administrative expenses (635) (1,118) (2,745)
Other operating
costs (105) (33) (28)
Operating
loss (646) (314) (1,214)
Finance income - 15 13
Loss before
tax (646) (299) (1,201)
Taxation on discontinued
operations - (106) (186)
Loss for the period
from discontinued
operations (646) (405) (1,387)
-------------------------- -------- -------- ------------
The net loss from the disposal of the business units listed
above and included in the income statement are set out below:
Year ended
6 months to 30
June 31 December
------------------
2013 2012 2012
GBP'000 GBP'000 GBP'000
--------------------------- -------- -------- ------------
Consideration on disposals 200 - -
Net assets
on disposals (1,909) - -
Goodwill impairment
on disposal (404) - -
Other disposal
costs (40) - -
Loss on business disposals
before tax (2,153) - -
Tax on disposal of
discontinued operations - - -
Loss on business disposals
after tax (2,153) - -
----------------------------- -------- -------- ------------
The cash flows from discontinued operations and included in the
consolidated statement of cash flows are set out below:
Year ended
6 months to 30
June 31 December
------------------
2013 2012 2012
GBP'000 GBP'000 GBP'000
------------- -------- -------- ------------
Operating
activities (651) (979) (1,773)
Investing
activities (11) (38) (52)
Financing
activities (46) (8) (17)
Total cash
flows (708) (1,025) (1,842)
-------------- -------- -------- ------------
5. Exceptional items
Exceptional items represent costs considered necessary to be
separately disclosed by virtue of their size or nature.
Year ended
6 months to 30
June 31 December
------------------
2013 2012 2012
GBP'000 GBP'000 GBP'000
------------------------------ -------- -------- ------------
Impairment of intangible
assets - - 550
Impairment of property,
plant and equipment - - 7
Restructuring
costs 2 283 517
Profit on disposal of
land (384) - -
Pension scheme restructuring
costs 222 - 375
(160) 283 1,449
-------- -------- ------------
Restructuring costs, mainly in the UK, relate to employee
redundancy costs. Legal and professional fees associated with
setting up the pension scheme contribution holiday are reported
under pension scheme restructuring costs.
6. Net finance (cost)/income
Finance income and costs from continuing operations is set out
below:
Year ended
6 months to
30 June 31 December
------------------
2013 2012 2012
GBP'000 GBP'000 GBP'000
--------------------------------- -------- -------- ------------
Finance income
Bank and other interest
receivable 3 24 19
Finance costs
Bank overdraft and
loan interest (156) (89) (221)
Finance leases and
hire purchase contracts (11) (12) (22)
Net return on pension
scheme assets and liabilities (226) (135) (269)
Total net
finance cost (390) (212) (493)
--------------------------------- -------- -------- ------------
7. Loss per share
The calculations of the loss per share are based on the total
loss after tax attributable to ordinary equity shareholders of the
Company and the weighted average number of shares in issue for the
reporting period.
Year ended
6 months to 30
June 31 December
----------------------------------
2013 2012 2012
------------------------- --------------- ------------- ---------------
Loss after taxation GBP(3,466,000) GBP(859,000) GBP(2,747,000)
Weighted average number
of shares in issue in
the period 59,761,646 59,761,646 59,761,646
Dilutive effect
of share options - - -
Number of shares for
diluted earnings per
share 59,761,646 59,761,646 59,761,646
------------------------- --------------- ------------- ---------------
Loss per share
- basic and
diluted
Continuing operations (1.1) p (0.8) p (2.3) p
Discontinued
operations (4.7) p (0.7) p (2.3) p
Total operations (5.8) p (1.5) p (4.6) p
------------------------- --------------- ------------- ---------------
There is no dilution in the loss per share calculation at 30
June 2013 due to the loss for the period. The diluted loss per
share is the same as the basic loss per share for the current
period.
8. Borrowings
The bank loans and overdrafts are repayable as follows:
at 30 June at 30 June at 31 December
2013 2012 2012
GBP'000 GBP'000 GBP'000
In one year
or less 3,825 4,533 5,401
Between one and
two years 400 900 900
Between two and
five years 3,200 1,575 1,125
More than five
years - - -
7,425 7,008 7,426
----------------- ----------- ----------- ---------------
9. Acquisitions
On 17 April 2013 the Group acquired the business and certain
assets of Wagemeyer, of Germany, enhancing its range of staircase
engineering software for a total consideration of GBP64,000. The
consideration comprised the payment of GBP42,000 in cash from the
Group's existing resources and deferred consideration of GBP22,000
payable over a three year period.
An analysis of the provisional fair value of the Wagemeyer net
assets acquired and the fair value of the consideration paid is set
out below:
Fair Provisional
Book value fair
value adjustments value
GBP'000 GBP'000 GBP'000
--------------------- -------- ------------- ------------
Intangible
assets 30 - 30
Property, plant and
equipment 4 - 4
34 - 34
Net assets 34 - 34
Goodwill 30
Total consideration 64
--------------------- -------- ------------- ------------
Satisfied
by:
Cash 42
Deferred purchase
consideration 22
64
--------------------- -------- ------------- ------------
Intangible assets relates to the value attributed to the
customer list acquired as part of the acquisition of the
business.
Goodwill contains certain intangible assets that cannot be
individually, separately and reliably measured from the acquiree
due to their nature. These items include the value of the
management and workforce together with synergies that are expected
to be gained from being part of the Group.
In addition to the cash consideration paid for Wagemeyer in the
period, GBP40,000 of deferred consideration was paid for Novator
Projekstyrning AB, of Sweden, acquired in 2012.
10. Related Party Disclosures
Transactions between Group undertakings, which are related
parties, have been eliminated on consolidation and are not
disclosed in this note.
With the exception of M L Turner, the Directors of the Company
had no material transactions with the Company during the six months
to 30 June 2013, other than a result of service agreements. An
amount of GBP62,000 (2012: GBP73,000) was paid to Shoremountain Ltd
of which M L Turner is a director. This was paid under the terms of
a consultancy arrangement by the Group.
An amount of GBP18,000 (2012: GBP12,500) was paid to JHB
Ketteley &Co Limited under a lease for occupation by the Group
of 66 Clifton Street, London, EC2A 4HB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FMGMLNLRGFZM
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