RNS Number:2543I
H&T Group PLC
31 August 2006
H&T Group plc
"H&T" or "the Group"
H&T Group plc, which trades under the H&T Pawnbrokers and Get>Go brands, is the
UK's leading pawnbroking business by size of pledge book. The Group today
announces its Interim Results, for the period ended 30 June 2006.
Financial highlights
6 months 6 months
to 30 June to 30 June
2006 2005 Change
#m #m %
Gross profit 10.8 9.4 +14.1
Earnings before Interest, Tax, Depreciation, Amortisation (EBITDA) 3.9 3.4 +12.6
before exceptional items
Operating profit before exceptional items 2.9 2.4 21.0
Operating profit 1.0 2.4 -59.3
Pledge book 24.3 23.7 +2.3
Operational highlights
* Store expansion programme on track with one new store opened in H1 2006
and two further stores opened since the end of June 2006
* In-house cheque cashing & pay day advance underwriting and collecting
facilities
* Pre-paid debit cards now available in all stores
* Admission to AIM on 8 May 2006 with share price of 172 pence per share
Peter Middleton, Chairman said:
"I am very happy to present H&T's maiden Interim Results as a public company.
The period has included the major achievement of an initial public offering on
AIM which was well supported primarily by UK institutional investors. The
results announced today show continued progress and growth and provides a strong
foundation for the Group going forward. Overall, this has been an excellent
start for H&T as a public company."
John Nichols, CEO said
"Whilst pawnbroking will remain both the core of our business and a major growth
driver, we continue to develop new products within our financial services
offering. Pay Day Advance, Kwikloan, our pre-paid debit cards and Get>Go, our
alternative financial services outlet, are progressing well and I believe that
they offer valuable growth potential.
I look forward to the full year with confidence."
31 August 2006
For further information please contact:
H&T Group plc
John Nichols, Chief Executive 0870 9022 600
Hawkpoint Partners Limited (Nominated adviser)
Lawrence Guthrie/Sunil Duggal 020 7665 4500
Numis Securities Limited (Broker)
Oliver Hemsley/Charles Farquhar 020 7776 1500
College Hill Associates (PR)
Gareth David/Paddy Blewer 020 7457 2020
Notes to Editors
H&T is the UK's leading pawnbroking business by size of pledge book. The
business was founded in 1897 and now has 71 outlets across the UK and
approximately 300 employees.
H&T's outlets offer a range of services including pawnbroking, cheque cashing
and unsecured loans. H&T is also a retailer of jewellery, both second-hand
items sourced from its pawnbroking operations and a relatively small number of
new products brought in for re-sale.
H&T provides lending solutions designed to meet the financing needs of
individuals who may not satisfy the lending criteria of high street banks. As
these individuals are not adequately serviced by mainstream lenders, the
Directors believe that it is an attractive niche market. The Directors believe
that H&T has developed strong client relationships founded on its ability to
reach lending decisions quickly and the emphasis on customer service, evidenced
by repeat business where a single item may be pawned more than once. New
customers are typically sourced through passing trade at the Company's high
street and shopping mall locations, introductions from existing clients and
advertising.
In May 2006 H&T was admitted to AIM, placing shares worth #49 million, at 172
pence per share. The Daily Official List closing share price on 29 August 2006
was 182.5 pence giving the Group a market capitalisation of #57.5 million.
Report of the Chief Executive Officer and Finance Director
The first half of 2006 brought an exciting transformation for H&T, with the
successful admission to AIM in May which attracted investment from a number of
leading UK institutions. The Board is very pleased to be able to report a
positive trading performance which saw an increase in gross profit of 14.1% to
#10.8 million from #9.4 million in the equivalent period last year.
The pawnbroking segment of the business performed well with gross profit
increasing by 13.1% on the equivalent period last year, driven by strong cash
collections. Although there is evidence that consumer discretionary spend has
been under pressure, the Group has responded to the challenge with both revenue
and margin for H1 2006 ahead of the same period last year.
The financial services operation made further strong progress with an increase
in gross profit of 24.4% on the equivalent period last year, driven by growth
across the product range including cheque cashing, pay day advance and Kwikloan.
The Group has also brought the authorisations and collections "in house",
resulting in an improvement in margin.
In line with the Group's growth strategy, we have continued to grow our estate
with one new store opening in the first half of the year and two further new
store openings since 30 June. On the product side, we are continuing to invest
in our recently launched alternative financial products, such as Kwikloan and
our pre- paid debit card, as well as trialling new product initiatives.
OPERATIONAL REVIEW
Pawnbroking:
- Pawnbroking activities contributed #9.7 million (H1 2005: #8.6
million) or 91% of Group gross profit in H1 2006 (H1 2005: 91%).
- The pledge book totalled #24.3 million at 30 June 2006 compared with
#23.7 million at the same time in 2005. The current pledge book represents a
small decrease on the 31 December 2005 position (#24.4 million) due to seasonal
factors.
- Pawn Service Charge (PSC) rose by 8.3% to #7.6 million (2005: #7.0
million).
- Disposition combines contribution from retail and scrap. Difficult
high street trading conditions experienced in the sector in the second half of
2005 continued in the first half of 2006 and consequently retail gross revenues
were 2.3% down on prior year. However, the revision of the retail pricing policy
proved successful with the gross profit margin rising from 38.4% to 43.7%. As a
result, the retail gross profit increased by 11.1% to #1.6 million (2005: #1.4
million). Scrap sales benefited from the rise in the gold price showing an
increase of #0.4 million in gross margin.
Financial services:
- Financial services activities contributed #1.1 million (H1 2005: #0.9
million) or 9% of Group gross profit in H1 2006 (H1 2005: 9%).
- In January 2006, the arrangements for the underwriting of cheque
cashing and pay day advances with the The Money Shop were terminated. The
transition to in-house facilities has proved successful generating a positive
contribution from the outset.
- Kwikloan, the Group's unsecured loan product, was fully rolled out at
the end of 2005 and exhibited good growth in H1 2006. However, the Kwikloan
book remains small and the product's contribution to Group results remains
limited at present.
- The pre-paid debit card product has attracted new customers to the
stores although, as anticipated, it has made an immaterial direct financial
contribution to the H1 results. However, the Board believes there is
considerable potential for this product going forward.
STRATEGY REVIEW
H&T's admission document produced in connection with its admission to AIM,
presented the growth strategy on four main streams:
- Expand geographical footprint: The Group opened one new store in H1
2006 in Hastings. Two further new stores in Irvine and Basildon have been
opened since 30 June 2006, taking the current number of stores to 71. Leases
have been signed in respect of three further sites and subject to planning
consents these stores will be opened during the second half of 2006. The Board
also continues to review acquisition opportunities to expand the Group's estate
on an ongoing basis.
- Establish recently introduced products and services: The pre-paid
debit cards are attracting new customers to stores and the Group continues to
invest in the Kwikloan product.
- New store format Get>Go: The Group is planning to add a further store
in the Get>Go format, which focuses on cheque cashing and other financial
services. A pawnbroking offering presented as "cash lent on gold" is currently
being launched within this store format.
- New products: A trial of a new referral loans service is currently
planned for the second half of 2006.
Staff incentives
The Group has put in place both an approved and an unapproved share option
scheme. The approved scheme will enable share options to be granted to store
management as well as operational staff and should provide a strong incentive
for staff to contribute to the success of the Group.
Trading outlook
The Board is pleased with the overall trading performance of the Group which
remains in line with its expectations.
Seasonality within the business means that the second half of the year tends to
make a larger contribution to the full year result than the first half. The
extent of this is affected by retail sentiment, particularly during the
Christmas period. The business has good prospects for organic growth which will
be driven by further branch openings in the second half of the year.
FINANCIAL REVIEW
Turnover and gross profit
Turnover for the first six months of 2006 amounted to #14.5 million compared
with #13.6 million for the corresponding period in 2005. This 6.2% increase was
driven by strong PSC and scrap sales. The improvement in retail gross margin and
scrap gross profit resulted in an increase in total gross profit of 14.1% to
#10.8 million (2005: #9.4 million).
Administrative expenses
The Group's administrative expenses before exceptional items in the first six
months of 2006 were #7.9 million compared with #7.1 million for the same period
in 2005. This 11.9% increase was due to nine additional stores and the
introduction of the new cheque cashing authorisation and debt collection
facility. Exceptional expenses of #1.9 million were incurred as part of the
Initial Public Offer (IPO).
Operating profit
The Group recorded an operating profit before exceptional items of #2.9 million
for the period compared with #2.4 million in the previous period. Earnings
before interest, taxation, depreciation, amortisation and exceptional items
(EBITDA before exceptional items) increased by 12.6% to #3.9 million (2005: #3.4
million). After taking account of the exceptional items, operating profit was
#1.0 million in the six months ended 30 June 2006 compared with #2.4 million in
the same 2005 period.
Interest payable and similar charges
Interest payable before exceptional items decreased by #0.3 million from #2.6
million in the first six months of 2005 to #2.3 million in 2006. This reduction
has arisen as a result of the repayment of the Rutland loan notes and the
restructuring of bank facilities at the time of H&T's admission to AIM in May
2006. This restructuring incurred an exceptional charge of #0.8 million in the
period. Had this restructuring and IPO been effective as from the beginning of
the year, the Board estimates that the interest payable before exceptional items
would have been #1.6 million for H1 2006.
Profit/(loss) before taxation
The Group has recorded a loss before taxation of #2.3 million in H1 2006
compared with a profit before taxation of #0.4 million in H1 2005. The result in
H1 2006 was impacted by exceptional costs consisting of #1.9 million of
exceptional administrative expenses relating to H&T's admission to AIM and #0.8
million of debt restructuring costs. Profit before taxation and exceptional
items in H1 2006 was #0.4 million compared to a loss of #0.5 million in H1 2005.
(Loss)/Earnings per share
Basic loss per share for H1 2006 was 9.88 pence compared with basic earnings per
share of 0.83 pence in H1 2005. After adjusting for exceptional items, adjusted
basic loss per share for H1 2006 was 0.08 pence compared with adjusted basic
loss per share of 2.42 pence in H1 2005.
IPO/New debt structure
Following the IPO of H&T, a new debt structure was put in place. The mezzanine
debt (#5.2 million) and the Rutland loan notes (#18.3 million) were repaid with
the placing proceeds and an increase in other banking facilities provided by
Barclays Bank PLC. Net debt (before unamortised debt issue costs) was #35.8
million at 30 June 2006 compared with #52.7 million at 30 June 2005.
Hedging policy
The Group entered into a hedging agreement fixing the interest rate on #35.0
million of banking debt for a period of 3 years. This instrument was effective
from 30 June 2006.
Dividends
The Directors intend to pay a dividend of approximately 3 pence per ordinary
share in respect of the financial year ending 31 December 2006. The Directors
intend this to be declared as a final dividend and paid in April 2007.
J. G. Nichols L P Genthialon
Chief Executive Officer Finance Director
31 August 2006
H&T Group plc
Unaudited consolidated Profit and Loss Account
Six months Ended 30 June 2006
Before Exceptional Six months Before Exceptional Six months
Exceptional Items ended Exceptional Items ended
Items 30 June Items 30 June
2006 2005
Total Total
Note #'000 #'000 #'000 #'000 #'000 #'000
Turnover 14,478 - 14,478 13,636 - 13,636
Cost of sales (3,717) - (3,717) (4,208) - (4,208)
Gross profit 2 10,761 - 10,761 9,428 - 9,428
Administrative expenses 3 (7,904) (1,896) (9,800) (7,066) - (7,066)
Operating profit/(loss) 2,857 (1,896) 961 2,362 - 2,362
Profit on disposal of 4 - - - - 898 898
fixed assets
Interest receivable and 11 - 11 12 - 12
similar income
Interest payable and 5 (2,479) (800) (3,279) (2,909) - (2,909)
similar charges
Profit/(loss) on ordinary 389 (2,696) (2,307) (535) 898 363
activities before taxation
Tax on (loss)/profit on 6 (408) 400 (8) 52 (250) (198)
ordinary activities
(Loss)/profit for the 11 (19) (2,296) (2,315) (483) 648 165
period
(Loss)/earnings per share 7 (9.88) p 0.83 p
- basic
(Loss)/ earnings per 7 (9.88) p 0.79 p
share - diluted
Adjusted loss per share - 7 (0.08) p (2.42) p
basic
Adjusted loss per share - 7 (0.08) p (2.32) p
diluted
The consolidated Profit and Loss account for the 12 months ended 31 December 2005 is provided in note 1.
H&T Group plc
Unaudited consolidated Balance Sheet
As at 30 June 2006
30 June 2006 30 June 2005 31 December 2005
Note #'000 #'000 #'000
Fixed Assets
Intangible assets - goodwill 13,962 14,197 14,346
Tangible 5,437 4,920 5,144
19,399 19,117 19,490
Current Assets
Stock 4,277 4,534 3,373
Debtors 31,185 30,658 31,526
Cash at bank and in hand 1,220 2,101 1,434
36,682 37,293 36,333
Creditors: amounts falling due within 8 (4,589) (2,855) (3,569)
one year
Net Current Assets 32,093 34,438 32,764
Total Assets Less Current Liabilities 51,492 53,555 52,254
Creditors: amounts falling due after 9 (34,846) (52,409) (50,990)
more than one year
Provisions for liabilities & charges (143) (171) (133)
Net Assets 16,503 975 1,131
Capital and Reserves
Called up share capital 10,11 1,574 1,000 1,000
Share premium account 11 17,113 - -
Profit and loss account 11 (2,184) (25) 131
Shareholders' Funds 11 16,503 975 1,131
H&T Group plc
Unaudited consolidated Cash Flow Statement
Six months ended 30 June 2006
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2006 2005 2005
Note #'000 #'000 #'000
Net cash inflow from operating activities 12 3,020 686 5,421
Returns on investment and servicing of finance
Interest received 11 12 16
Debt restructuring cost (800) - -
Interest paid (1,299) (1,423) (2,850)
Net cash outflow from returns on investments and
servicing of finance
(2,088) (1,411) (2,834)
Taxation - corporation tax paid (150) (437) (806)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (1,462) (268) (910)
Sales of tangible fixed assets 42 999 1,074
Net cash (outflow)/inflow from capital
expenditure and financial investment
(1,420) 731 164
Acquisitions and disposals
Purchase of businesses - (390) (636)
Cash acquired with unincorporated businesses - - 3
Net cash outflow from acquisitions and disposals - (390) (633)
Financing
Issue of shares 18,364 - -
Expenses of share issue (677) - -
New borrowings 6,400 2,800 500
Repayment of borrowings (23,663) (500) (1,000)
Net cash inflow/(outflow) from financing 424 2,300 (500)
(Decrease)/increase in cash in the period (214) 1,479 812
H&T Group plc
Unaudited Notes to the Interim Statement
Six months ended 30 June 2006
Note 1 Consolidated profit and loss account for the 12 months ended 31 December
2005
Note Before Total
Exceptional Exceptional
Items Items
#'000 #'000 #'000
Turnover 29,638 - 29,638
Cost of sales (9,576) - (9,576)
Gross profit 2 20,062 - 20,062
Administrative expenses 3 (14,354) - (14,354)
Operating profit 5,708 - 5,708
Profit on disposal of fixed assets 4 - 898 898
Interest receivable and similar income 16 - 16
Interest payable and similar charges 5 (5,860) - (5,860)
(Loss)/profit on ordinary activities before (136) 898 762
taxation
Tax on (loss)/profit on ordinary activities 6 (191) (250) (441)
(Loss)/profit for the financial year 11 (327) 648 321
Earnings per share - basic 7 1.61 p
Earnings per share - diluted 7 1.54 p
Adjusted loss per share - basic 7 (1.64) p
Adjusted loss per share - diluted 7 (1.57) p
Note 2 Gross profit analysis
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2006 2005 2005
#'000 #'000 #'000
Pawn service charge (PSC) 7,615 7,029 14,258
Retail 1,552 1,397 3,561
Scrap 537 152 484
Disposition 2,089 1,549 4,045
Other financial services 1,057 850 1,759
Total gross profit 10,761 9,428 20,062
Pawn service charge principally comprises interest on loans, plus auction profit and loss, less any auction
commissions payable and less surplus payable to the customer.
Retail is the gross margin made on retail sales less direct costs.
Scrap is the proceeds from scrap less the pledge value of the item and associated disposition cost.
Other financial services includes cheque cashing commission, pay day advances commission, Kwikloan interest,
prepaid debit card commission, netted off with any bad debt write off or provision associated with any of
these products.
H&T Group plc
Unaudited Notes to the Interim Statement (continued)
Six months ended 30 June 2006
Note 3 Administrative expenses
Six months ended Six months ended Year ended
30 June 30 June 31 December
2006 2005 2005
#'000 #'000 #'000
Other administrative expenses 6,900 6,000 12,217
Depreciation charge on owned tangible fixed 620 699 1,361
assets
Amortisation charge on intangible fixed 384 367 776
assets
Total administrative expenses before 7,904 7,066 14,354
exceptional items
Exceptional items (IPO expenses - note 13) 1,896 - -
Total administrative expenses 9,800 7,066 14,354
Note 4 Exceptional items for the six months ended 30 June 2005 and the year
ended 31 December 2005
During the first six months of 2005, the Group disposed of three freehold
properties, two of which were leased back under operating leases. The profit
arising on disposal amounted to #898,000.
Note 5 Interest payable and similar charges
Six months ended Six months ended Year ended
30 June 30 June 31 December
2006 2005 2005
#'000 #'000 #'000
Interest payable on bank loans and overdraft 1,360 1,521 3,023
On Rutland loan notes * 896 1,088 2,273
Other interest 15 3 29
Amortisation of debt issue costs 208 297 535
2,479 2,909 5,860
Exceptional items ** 800 - -
Total interest payable and similar charges 3,279 2,909 5,860
* The Rutland loan notes interest for the 2006 period ceased to accrue on 12 May
2006 when the loan notes were fully repaid.
** The #800k charge in the six month period ended 30 June 2006 relates to costs
expensed associated with the arrangement fees of the bank loan restructuring
disclosed in note 9.
H&T Group plc
Unaudited Notes to the Interim Statement (continued)
Six months ended 30 June 2006
Note 6 Tax on (loss)/profit on ordinary activities
The taxation on profit/(loss) on ordinary activities before exceptional items
assessed for the 6 months ended 30 June 2006 is higher than that resulting from
applying the standard rate of corporation tax in the UK of 30% (2005 - 30%). The
differences are explained below:
Six months ended Six months ended Year ended
30 June 30 June 31 December
2006 2005 2005
#'000 #'000 #'000
Profit/(Loss) on ordinary activities before 389 (535) 762
taxation
Taxation on profit/(loss) on ordinary activities 117 (161) 229
before taxation
Effects of:
Disallowed expenses and non taxable income 99 140 348
Capital allowances and other timing differences 43 (48) (82)
Short term timing differences 139 4 9
Disposal of properties - - (23)
Adjustments to tax charge in respect of previous - - (104)
periods
Total actual amount of current tax 398 (65) 377
Deferred tax 10 13 64
Tax on profit/(loss) on ordinary activities 408 (52) 441
Tax on exceptional items
The #400k tax credit on exceptional items for the 6 month period ended 30 June
2006 is based on #160k available relief for IPO expenses and #240k available
relief for the debt restructuring costs. The #250k tax on exceptional items for
the 6 months ended 30 June 2005 and for the year ended 31 December 2005 is due
to the gain on the disposal of tangible fixed assets.
H&T Group plc
Unaudited Notes to the Interim Statement (continued)
Six months ended 30 June 2006
Note 7 (Loss)/Earnings per share
Basic (loss)/earnings per share is calculated by dividing the profit on ordinary
activities after taxation by the weighted average number of ordinary shares in
issue during the period. For diluted (loss)/earnings per share, the weighted
average number of ordinary shares in issue is adjusted to assume the exercise of
warrants over shares.
Reconciliations of the (loss)/earnings per ordinary shares and weighted average
number of shares used in the calculations are set out below:
Six months ended Six months ended Year ended
30 June 30 June 31 December
2006 2005 2005
#'000 #'000 #'000
(Loss)/profit after taxation used for Basic and
Diluted (L)/EPS (2,315) 165 321
IPO costs 1,896 - -
Profit on fixed assets disposal - (898) (898)
Debt restructuring costs 800 - -
Tax relating to IPO costs, profit on fixed assets
disposal and debt restructuring costs (400) 250 250
Loss after taxation used for Adjusted Basic and (19) (483) (327)
Diluted (L)/EPS
Weighted average number of shares used for Basic
and Adjusted Basic (L)/EPS 23,426,675 20,000,000* 20,000,000*
Assumed conversion of warrants - 833,340* 833,340*
Diluted weighted average number of shares 23,426,675 20,833,340 20,833,340
* Reflects the subdivision of the ordinary shares from 100p to 5p
The Adjusted loss per share is presented as the directors consider that it
reflects the group results on a comparable basis once non recurring items are
taken into consideration. All the adjustments made to the non-adjusted (loss)/
earnings per share in arriving at adjusted (loss)/earnings per share are for
exceptional items disclosed separately on the face of the profit and loss
account.
Note 8 Creditors: Amounts falling due within one year
At 30 June At 30 June At 31 December
2006 2005 2005
#'000 #'000 #'000
Short term 1,250 1,250 1,500
portion of
bank loan
Unamortised (207) (577) (518)
debt issue
costs
Net 1,043 673 982
short-term
portion of
bank loans
Trade 1,034 579 859
creditors
Corporation - 377 73
tax
Other 967 133 239
taxation
and social
security
costs
Accruals 1,545 1,093 1,416
and
deferred
income
4,589 2,855 3,569
H&T Group plc
Unaudited Notes to the Interim Statement (continued)
Six months ended 30 June 2006
Note 9 Creditors: Amounts falling due after more than one year
At 30 June 2006 At 30 June 2005 At 31 December
2005
#'000 #'000 #'000
Facility A 13,750 11,250 10,500
Facility B 22,000 20,900 18,600
Mezzanine debt - 5,164 5,265
Bank loans 35,750 37,314 34,365
Unamortised issue costs (904) (1,145) (801)
Rutland loan notes - 16,240 17,426
34,846 52,409 50,990
The Group restructured its banking arrangements at the time of the IPO. As a
result, the mezzanine debt was fully repaid, the Facility A loan was increased
to #15.0m, the Facility B was increased (enabling the Group to draw down to a
maximum amount of #29.0m based on the value of the Group's pledge book and a
#3.0m working capital facility was made available. The Group does not consider
these facilities as new debt but as a restructuring of its existing facilities
and accordingly the arrangement and associated fees incurred have been expensed
in the period. The proceeds to the Group from the IPO were used to repay in full
the #18.3m balance of Rutland loan notes.
Note 10 Called up share capital
At 30 June 2006 At 30 June 2005 At 31 December
2005
# # #
Authorised:
830,000 Ordinary A-class shares of #1 each - 830,000 830,000
110,000 Ordinary B-class shares of #1 each - 110,000 110,000
60,000 Ordinary C-class shares of #1 each - 60,000 60,000
41,667 Ordinary D-class shares of #1 each - 41,667 41,667
41,970,000 Ordinary shares of #0.05 each 2,098,500 - -
2,098,500 1,041,667 1,041,667
Allotted, called up and fully paid
830,000 Ordinary A-class shares of #1 each - 830,000 830,000
110,000 Ordinary B-class shares of #1 each - 110,000 110,000
60,000 Ordinary C-class shares of #1 each - 60,000 60,000
31,485,706 Ordinary shares of #0.05 each 1,574,285 - -
1,574,285 1,000,000 1,000,000
The cumulative authorised share capital as at 31 December 2005 of #1,041,667 has
been sub-divided during the six months ended 30 June 2006 into one class of
ordinary 5p share comprising 20,833,340 shares. 21,136,660 new ordinary shares
of 5p each have been authorised in the six months ended 30 June 2006 taking the
authorised ordinary share capital to 41,970,000 shares. Of these 21,136,660 new
ordinary shares, 10,652,366 were issued, called up and fully paid at the placing
price of #1.72 per share upon the admission of the Group to AIM on 8 May 2006.
H&T Group plc
Unaudited Notes to the Interim Statement (continued)
Six months ended 30 June 2006
Note 11 Combined reconciliation of movement in shareholders' funds & statement
of movements on reserves
Share Share premium Profit and loss Total
capital account account
#'000 #'000 #'000 #'000
At 1 January 2005 1,000 - (190) 810
Retained profit for the period - - 165 165
At 30 June 2005 1,000 - (25) 975
Retained profit for the period - - 156 156
At 31 December 2005 1,000 - 131 1,131
Retained loss for the period - - (2,315) (2,315)
Issue of share capital 574 17,790 - 18,364
Issue expenses - (677) - (677)
At 30 June 2006 1,574 17,113 (2,184) 16,503
Note 12 Cash flow from operating activities
Six months Six months
ended ended Year ended
30 June 30 June 31 December
2006 2005 2005
Continuing operations #'000 #'000 #'000
Operating profit 961 2,362 5,708
Amortisation of intangible assets 384 367 776
Profit on disposal of fixed assets (7) - (20)
Depreciation of tangible fixed assets 620 699 1,361
(Increase)/decrease in stock (904) (712) 456
Decrease/(increase) in debtors 431 (2,170) (3,429)
Increase in creditors 1,535 140 569
Net cash inflow from operating activities 3,020 686 5,421
Note 13 Initial Public Offer (IPO) costs
In the six months ended 30 June 2006, the Group incurred #3.4m of expenses
relating to the IPO and its debt restructuring. #0.8m was incurred for the
restructuring of its debt and accordingly was expensed to the profit and loss
account (note 5). #0.7m was directly allocated to the issue of new shares and
written off to the share premium account (note 11). The balance of #1.9m was
expensed to the profit and loss account (note 3).
H&T Group plc
Unaudited Notes to the Interim Statement (continued)
Six months ended 30 June 2006
Note 14 Reconciliation of the Earnings before Interest, Tax, Depreciation and
Amortisation (EBITDA) before exceptional items to Operating Profit before
exceptional items
Six months ended Six months ended Year ended
30 June 2006 30 June 2005 31 December 2005
#'000 #'000 #'000
Operating profit before exceptional items 2,857 2,362 5,708
Add depreciation 620 699 1,361
Add amortisation 384 367 776
EBITDA before exceptional items 3,861 3,428 7,845
Note 15 Statutory information
These results have been prepared on the basis of the UK generally accepted
accounting principles (GAAP) and accounting policies set out in the Group's 2005
audited statutory accounts. These results do not constitute the Group statutory
accounts for the periods ended 30 June 2006 or 30 June 2005 within the meaning
of section 240 of the Companies Act 1985. Financial information for the period
ended 31 December 2005 is extracted from the Group financial statements for the
year ended 31 December 2005, which was reported on by the Group's auditors,
Deloitte & Touche LLP, and have been filed with the Registrar of Companies. The
report of the auditors thereon was unqualified and did not contain a statement
under section 237(2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR WUUQGRUPQGAU
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