RNS Number:6050C
H&T Group PLC
22 August 2007
H&T Group plc
"H&T" or "the Group"
Interim Results for the six months ended 30 June 2007
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 2007.
Financial highlights (under IFRS)
6 months to 6 months to Change
30 June 2007 30 June 2006
#m #m %
Gross profit 12.8 10.6 +20.9
Earnings before Interest, Tax, Depreciation, Amortisation
(EBITDA) before exceptional items 4.6 3.7 +26.3
Operating profit before exceptional items 4.0 3.1 +30.1
Operating profit 4.0 1.2 +242.0
Pledge book 25.6 24.3 +5.4
Operational highlights
* Interim dividend declared of 1.6p per share payable on 15 October 2007
* Successful placing in May 2007 at 204p raising #7m for store
acquisition and expansion programme
* 6 new stores have opened since the beginning of the year giving a
current total of 83 stores
John Nichols, Chief Executive, comments:
"This is an excellent result for the first half of 2007 with all product lines
showing double digit growth and gold asset backed lending continuing to prove a
success. We are capitalising on the opportunities we described at last year's
IPO, both in terms of revenue growth and development of our store base through
new builds and acquisitions. We have also declared an interim dividend of 1.6p
per share. Christmas remains a key season for our retail segment so provided
current retail conditions continue, we can look forward to the outturn of the
full year with confidence."
21 August 2007
Enquiries:
H&T Group plc Tel: 0870 9022 600
John Nichols, Chief Executive
Laurent Genthialon, Finance Director
Hawkpoint (Nominated adviser) Tel: 020 7665 4500
Lawrence Guthrie/Sunil Duggal
Numis Securities (Broker) Tel: 020 7260 1000
Oliver Hemsley/Charles Farquhar
College Hill Tel: 020 7457 2020
Gareth David/Paddy Blewer
Report of the Chief Executive Officer and Finance Director
H&T Group plc is pleased to report a very positive trading performance for the
first six months of 2007 ("H1 2007"). Gross profit for H1 2007 was #12.8 million
compared with #10.6 million for the first six months of 2006 ("H1 2006"), an
increase of 20.9%. Earnings before interest, tax, depreciation and amortisation
("EBITDA") before exceptional items rose by 26.3% from #3.7 million in H1 2006
to #4.6 million in H1 2007.
The directors have approved a 1.6p interim dividend (nil pence last year). This
will be payable on 15 October 2007 to all shareholders on the register at the
close of business on 14 September 2007.
In May 2007, H&T completed the placing of 3.6 million new ordinary shares to
existing shareholders, all leading UK institutions, and provides the Group with
#7 million of additional finance for its store expansion programme.
In accordance with the AIM Rules for Companies, this is the first period when H&
T will use International Financial Reporting Standards ("IFRS") accounting
standards rather than UK Generally Accepted Accounting Practices ("UK GAAP") as
the basis to report its financial results. This transition may lead to some
differences between reported numbers under IFRS and UK GAAP that are simply a
result of the accounting framework change and are not a reflection of a change
in business performance.
Pawnbroking activities, comprising Pawn Service Charge and Disposition,
performed well in the first six months of 2007 with gross profit increasing by
16.2% on the equivalent period last year, driven by an increase in pledge book
yield. The jewellery retail element has experienced growth in both revenue
(21.6%) and gross margin (39.1%) between H1 2006 and H1 2007.
The financial services segment's gross profit increased by 63.0% between H1 2006
and H1 2007; this strong performance was driven by growth across the financial
services product range including cheque cashing, pay day advance and KwikLoan.
In line with the Group's growth strategy, H&T has continued to grow its store
estate with two new stores opening in the first half of 2007. Since 30 June
2007, the Group has acquired an additional four stores. Taking into
consideration these six new stores H&T currently operates through 83 stores
across the United Kingdom.
Operational review
Pawnbroking:
- Pawnbroking activities contributed #11.1 million (H1 2006: #9.5
million) or 87% of the Group gross profit in H1 2007 (H1 2006: 90%).
- The Group's pledge book was #25.6 million at 30 June 2007
(#24.3 million at 30 June 2006).
- Pawn Service Charge rose to #8.4 million in H1 2007, an
increase of 10.8% on H1 2006 (#7.6 million).
- Disposition combines contributions from both the retail and
scrap operations. The retail segment recovery experienced in H2 2006 continued
in the first half of 2007 with retail gross revenues up by 21.6% on
H1 2006 (12.9% on a like for like basis). The improvement in the retail gross
profit margin in 2006 continued in H1 2007 with the retail gross profit margin
rising from 39.8% in H1 2006 to 49.6% in H1 2007. This translated in an increase
in retail gross profit of 39.1%, from #1.4 million in H1 2006 to #2.0 million in
H1 2007. Scrap gross profit increased by #0.2 million between H1 2006 and H1
2007, driven by higher volume of scrap sales.
Financial services:
- In H1 2007, the Group financial services activities contributed
#1.7 million (H1 2006: #1.1 million) or 13% of the Group's gross profit (H1
2006: 10%).
- The transition to in-house facilities for the underwriting of
cheque cashing and pay day advances implemented in early 2006 has enabled H&T to
drive both volumes and margins. The cheque cashing and pay day advance gross
profit increased from #1.0 million in H1 2006 to #1.6 million in H1 2007, an
increase of 60%.
- KwikLoan, the Group's unsecured loan product, doubled its loan
book from #0.3 million at
30 June 2006 to #0.6 million at 30 June 2007 (#0.4 million at 31 December 2006).
The pre-paid debit card product continues to attract new customers to the stores
although the general market awareness of the product has taken longer to develop
than anticipated. As a result, the pre-paid debit card operation has made only a
small contribution to the Group's H1 2007 results. However, the H&T Group Board
believes there is further potential in this product driven by the increased
convenience it grants to the consumer.
Strategy review
Update on business acquisitions
On 16 May 2007, the Group announced the placing of 3.6 million new ordinary
shares to finance the expansion of its store estate, in particular to fund the
cash element of acquisitions and the working capital required to grow these
businesses. At the time of the placing, H&T had already acquired a store in
Willesden, which was subsequently relocated to a nearby H&T store, and a store
in Wolverhampton. The contribution of these two new stores to the H1 2007
results was limited due to the timing of their acquisitions (mid May 2007).
Four stores for which key terms and exclusivity had been agreed in May 2007 were
acquired on 20 August 2007.
Exclusivity terms have been signed for a further 6 stores and completions are
expected to take place between September and November 2007 and terms are being
progressed on further opportunities.
Update on Greenfield sites
The Group opened one Greenfield store in H1 2007 (one in H1 2006) in Watford.
Leases have been signed in respect of four further sites and subject to planning
consents these stores will be opened during the second half of 2007.
Update on new point of sale development
The development of the replacement point of sale system for the business remains
within budget and the full roll out is expected in the second half of 2007 as
planned.
Trading outlook
The Board is pleased with the overall trading performance of the Group which
remains in line with 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 the impact of seasonality is affected by retail sentiment,
particularly during the Christmas period. The business has good prospects for
growth driven by a combination of further branch openings in the second half of
the year together with recent and scheduled store acquisitions.
Financial review
The financial results provided in the main body of this report have been
prepared using IFRS. For information only, we have included in the appendix the
Group's financial results under pro-forma UK GAAP and a reconciliation between
the pro-forma UK GAAP and IFRS. We should also point readers to the Group's
report on the impact of IFRS (relative to UK GAAP) on H&T's results released on
1 August 2007 and accessible on the Group's website (www.handtgroup.co.uk).
Turnover and gross profit
Turnover for the first six months of 2007 amounted to #17.3 million compared
with #14.5 million for the corresponding period in 2006; a 19.5% increase driven
by strong growth across all of the Group's activities. The improvement in retail
gross margin together with the growth in Pawn Service Charge and financial
services resulted in H1 2007 total gross profit of #12.8 million, an increase of
20.9% on H1 2006 (#10.6 million).
Administrative expenses
The Group's administrative expenses before exceptional items increased from #7.5
million in H1 2006 to #8.8 million in H1 2007. The increase was mainly due to
the higher number of stores owned by the Group (additional ten stores), the
development of the authorisations and collections back office and cost
inflation. There were no exceptional expenses in H1 2007 while #1.9 million were
incurred as part of the Initial Public Offer ("IPO") in H1 2006.
Operating profit
The Group recorded an operating profit before exceptional items of #4.0 million
for H1 2007 compared with #3.1 million in H1 2006. Earnings before interest,
taxation, depreciation, amortisation and exceptional items increased by 26.3%
between H1 2006 (#3.7 million) and H1 2007 (#4.6 million). After taking account
of the exceptional items, operating profit in H1 2007 was #4.0 million compared
with #1.2 million in H1 2006.
Other gains
The Group disposed of a freehold property in H1 2007 resulting in an exceptional
gain of #0.2 million (#nil in H1 2006).
Finance costs and similar charges
Finance costs before exceptional items decreased by #1.1 million from #2.5
million in H1 2006 to #1.4 million in H1 2007. This reduction resulted from the
repayment of the Rutland loan notes and the restructuring of bank facilities at
the time of the Group's admission to AIM in May 2006. The financial
restructuring in 2006 incurred an exceptional charge of #0.8 million. Had this
restructuring and IPO been effective from the beginning of 2006, the Board
estimates that the interest payable before exceptional items would have been
#1.6 million for H1 2006.
Under IFRS, movements in the fair value of the Group's interest rate swap are
recognised in the income statement. As a result, the Group recorded changes in
the fair value of the instrument amounting to income of #0.5 million in H1 2007
compared with income of #0.2 million in H1 2006.
Financial review (continued)
Profit/(loss) before taxation
The Group recorded a profit before taxation of #3.3 million in H1 2007 compared
with a loss before taxation of #1.9 million in H1 2006. In H1 2006, the Group
incurred #2.7 million exceptional costs compared with
#0.2 million of exceptional profit in H1 2007. Profit before taxation, fair
value hedge accounting and exceptional items in H1 2007 was #2.6 million
compared with #0.6 million in H1 2006. Profit before taxation and exceptional
items in H1 2007 was #3.1 million compared with #0.8 million in H1 2006.
Earnings/(loss) per share
Basic earnings per share for H1 2007 was 7.15 pence compared with basic loss per
share of 7.99 pence in H1 2006. After adjusting for exceptional items, adjusted
basic earnings per share for H1 2007 was 6.64 pence compared with 1.81 pence in
H1 2006.
Dividends
The directors have approved a 1.6p interim dividend (nil pence last year)
payable on the 15 October 2007. In June 2007, the Group paid a 3p final dividend
for the 2006 financial year results.
Interim Financial Statements
Unaudited consolidated income statement
For the 6 months ended 30 June 2007
6 months ended 30 June 2007 6 months ended 30 June 2006
Note Before Exceptional Before Exceptional
Exceptional Items Exceptional Items
Items (Note 4) Total Items (Note 4) Total
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
#'000 #'000 #'000 #'000 #'000 #'000
Continuing operations
Revenue 17,269 - 17,269 14,453 - 14,453
Cost of sales (4,459) - (4,459) (3,856) - (3,856)
Gross profit 12,810 - 12,810 10,597 - 10,597
Administrative expenses (8,827) - (8,827) (7,534) (1,896) (9,430)
Operating profit 3,983 - 3,983 3,063 (1,896) 1,167
Depreciation and 3 (664) - (664) (620) - (620)
amortisation
EBITDA* 4,647 - 4,647 3,683 (1,896) 1,787
Investment revenues 8 - 8 11 - 11
Other gains and losses 4 - 196 196 - - -
Finance costs 7 (1,409) - (1,409) (2,479) (800) (3,279)
Movement in fair value of 481 - 481 229 - 229
interest rate swap
Profit/(loss) before 3,063 196 3,259 824 (2,696) (1,872)
taxation
Tax on profit/(loss) 5 (947) (36) (983) (399) 400 1
Profit/(loss) for the period 2,116 160 2,276 425 (2,296) (1,871)
Earnings/(loss) per ordinary 7.15 p (7.99) p
share - basic 6
Earnings/(loss) per ordinary 7.14 p (7.99) p
share - diluted 6
*EBITDA: Earnings before Interest, Tax, Depreciation and Amortisation
The consolidated income statement for the 12 months ended 31 December 2006 is
provided in note 2.
Unaudited consolidated statement of changes in equity
For the 6 months ended 30 June 2007
Note 6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2007 2006 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Opening total equity 19,606 498 498
Profit/(loss) for the period 2,276 (1,871) 1,002
Dividend paid 10 (945) - -
Deferred tax credit on share based payments - - 400
taken directly to equity
Total of recognised income and expense for the period 20,937 (1,373) 1,900
Issue of new shares 8 7,063 17,687 17,687
Share option charge taken directly to equity 44 - 19
Closing total equity 28,044 16,314 19,606
Unaudited consolidated balance sheet
At 30 June 2007
At 30 June At 30 June At 31 December
2007 2006 2006
Unaudited Unaudited Audited
Note #'000 #'000 #'000
Non-current assets
Goodwill 15,300 14,346 14,899
Other intangible assets 1,216 554 804
Property, plant and equipment 5,594 4,825 5,396
22,110 19,725 21,099
Current assets
Inventories 6,290 4,442 4,237
Trade and other receivables 33,198 30,908 31,869
Assets held for sale - 58 37
Cash and cash equivalents 1,368 1,220 2,108
Derivative financial instruments 614 - 133
41,470 36,628 38,384
Current liabilities
Trade and other payables (3,322) (3,843) (3,510)
Current tax liabilities (857) (50) (88)
Bank overdrafts and loans (2,860) (1,043) (1,255)
Derivative financial instruments - (199) -
(7,039) (5,135) (4,853)
Net current assets 34,431 31,493 33,531
Non-current liabilities
Borrowings (28,034) (34,846) (34,617)
Deferred tax liabilities (463) (58) (407)
(28,497) (34,904) (35,024)
Total liabilities (35,536) (40,039) (39,877)
Net assets 28,044 16,314 19,606
EQUITY
Share capital 8 1,754 1,574 1,574
Share premium 23,995 17,113 17,112
Share option reserve 63 - 19
Retained earnings 2,232 (2,373) 901
Total equity 28,044 16,314 19,606
Unaudited consolidated cash flow statement
For the 6 months ended 30 June 2007
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2007 2006 2006
Unaudited Unaudited Unaudited
#'000 #'000 #'000
Cash flows from operating activities
Profit/(loss) for the period 2,276 (1,871) 1,002
Adjustments for:
Investment revenues (8) (11) (27)
Other gains and losses (196) - (46)
Finance costs 1,409 3,279 4,737
Movement in fair value of interest rate swap (481) (229) (561)
Income tax expense 983 1 1,035
Depreciation of property, plant and equipment 623 526 1,154
Amortisation of intangible assets 41 94 204
Share based payment expense 44 - 19
Profit on disposal of fixed assets (8) (7) (12)
Operating cash flows before movements in working 4,683 1,782 7,505
capital
Increase in inventories (1,772) (939) (734)
(Increase)/decrease in receivables (898) 456 (298)
(Decrease)/increase in payables (195) 1,721 1,152
Cash generated from operations 1,818 3,020 7,625
Income taxes paid (158) (150) (291)
Debt restructuring cost - (800) (801)
Interest paid (1,287) (1,299) (6,787)
Net cash from/(used by) operating activities 373 771 (254)
Investing activities
Interest received 8 11 27
Proceeds on disposal of property, plant and equipment 260 42 118
Purchases of property, plant and equipment (1,021) (1,462) (2,642)
Acquisition of trade and assets of businesses (1,377) - (1,013)
Net cash used in investing activities (2,130) (1,409) (3,510)
Financing activities
Dividends paid (945) - -
Repayments of borrowings (6,450) (23,663) (19,500)
Increase in borrowings - 6,400 6,251
Proceeds on issue of shares 7,063 17,687 17,687
Increase in bank overdrafts 1,349 - -
Net cash from financing activities 1,017 424 4,438
Net (decrease)/increase in cash and cash equivalents (740) (214) 674
Cash and cash equivalents at beginning of period 2,108 1,434 1,434
Cash and cash equivalents at end of period 1,368 1,220 2,108
Notes to the Interim Financial Report
Note 1 Basis of preparation
The AIM rules require that the next annual consolidated financial statements of
the Group for the year ending 31 December 2007, be prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the EU. The
company published its statement on the impact of the adoption of IFRS on 1
August 2007 which is available on the company website at www.handtgroup.co.uk
and the financial information presented in that document has been used as the
comparative information for the year ended 31 December 2006 and the period ended
30 June 2006.
The directors have applied the same accounting policies, as set out in the
document on the impact of the adoption of IFRS, which they expect to apply when
the first annual IFRS financial statements are prepared for the year ended 31
December 2007. This documented was audited by Deloitte & Touche LLP, the Group
auditors. The document, which includes their audit opinions on the IFRS opening
consolidated balance sheet as at 1 January 2006, and the IFRS consolidated
balance sheet as at 31 December 2006 is available from www.handtgroup.co.uk.
The comparative figures for the year ended 31 December 2006 or for the period
ended 30 June 2006 do not constitute statutory accounts for the purposes of
section 240 of the Companies Act 1985. A copy of the statutory accounts for the
year 31 December 2006, prepared under UK GAAP, has been delivered to the
Registrar of Companies and contained an unqualified auditors' report which made
no statement under sections 237(2) or (3) of the Companies Act 1985.
This interim financial report is unaudited.
Note 2 Consolidated income statement for the year ended 31 December 2006
Note Before Exceptional Total
Exceptional Items (Note 4)
Items
Audited Audited Audited
#'000 #'000 #'000
Continuing operations
Revenue 32,115 - 32,115
Cost of sales (8,787) - (8,787)
Gross profit 23,328 - 23,328
Administrative expenses (15,285) (1,903) (17,188)
Operating profit 8,043 (1,903) 6,140
Depreciation and amortisation 3 (1,358) - (1,358)
EBITDA 9,401 (1,903) 7,498
Investment revenues 27 - 27
Other gains and losses 4 - 46 46
Finance costs 7 (3,936) (801) (4,737)
Movement in fair value of interest rate 561 - 561
swap
Profit before taxation 4,695 (2,658) 2,037
Tax on profit 5 (1,421) 386 (1,035)
Profit for the financial year 3,274 (2,272) 1,002
Earnings per ordinary share - basic 6 3.65
Earnings per ordinary share - diluted 6 3.65
Notes to the Interim Financial Report (continued)
Note 3 Depreciation and amortisation
Operating profit is stated after charging:
6 months ended 6 months ended Year ended
30 June 2007 30 June 2006 31 December 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Depreciation on property, plant and equipment 623 526 1,154
Amortisation charge on intangible assets 41 94 204
664 620 1,358
Note 4 Exceptional items
During the first 6 months of 2007, the Group disposed of one freehold property
(6 months ended 30 June 2006: nil and year ended 31 December 2006: one which was
leased back as an operating lease) generating a profit of #196,000 (6 months
ended 30 June 2006: #nil and year ended 31 December 2006: #46,000).
During the first 6 months of 2006, the Group incurred a charge of #1,896,000 (6
months ended 30 June 2007: #nil and year ended 31 December 2006: #1,903,000) as
part of administrative expenses relating to the Initial Public Offering (IPO)
and #800,000 (6 months ended 30 June 2007: #nil and year ended 31 December 2006:
#801,000) as part of finance costs relating to the restructuring of the bank
facilities held by the Group following the IPO.
Note 5 Taxation
The taxation charge for the 6 months ended 30 June 2007 has been calculated by
reference to the expected effective corporation tax and deferred tax rates for
the full financial year to end on 31 December 2007. The underlying effective
full year tax charge is estimated to be 30.1% (6 months ended 30 June 2006:
48.4% and year ended 31 December 2006: 30.3%).
Note 6 Earnings/(loss) per share
Basic earnings/(loss) per share is calculated by dividing the profit for the
period attributable to equity shareholders by the weighted average number of
ordinary shares in issue during the period.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. With respect to the Group these represent share options granted to
employees where the exercise price is less than the average market price of the
Company's ordinary shares during the period.
The directors also present an adjusted earnings/(loss) per share 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 earnings/(loss) per share in arriving at adjusted earnings/
(loss) per share are for exceptional items disclosed separately on the face of
the consolidated income statement. Other than for the adjusting items, the
calculation is the same as for the statutory per share amounts.
Notes to the Interim Financial Report (continued)
Note 6 Earnings/(loss) per share (continued)
Reconciliations of the earnings/(loss) per ordinary share and weighted average
number of shares used in the calculations are set out below:
Unaudited Unaudited Audited
6 months ended 30 June 2007 6 months ended 30 June 2006 Year ended 31 December 2006
Earnings Weighted Per-share (Loss)/ Weighted Per-share Earnings Weighted Per-share
average amount earnings average amount average amount
#'000 number of pence number of pence #'000 number of pence
shares #'000 shares shares
Earnings/(loss) per
share basic 2,276 31,863,607 7.15 (1,871) 23,426,675 (7.99) 1,002 27,489,310 3.65
Effect of dilutive
securities
Options - 57,538 (0.01) - - - - 388 -
Earnings/(loss) per
share diluted 2,276 31,921,145 7.14 (1,871) 23,426,675 (7.99) 1,002 27,489,698 3.65
Earnings/(loss) per 2,276 31,863,607 7.15 (1,871) 23,426,675 (7.99) 1,002 27,489,310 3.65
share - basic
IPO costs - - - 1,896 - 8.09 1,903 - 6.92
Fixed assets (196) - (0.62) - - - (46) - (0.17)
disposal
Debt issue costs - - - 800 - 3.41 801 - 2.91
Tax adjustment 36 - 0.11 (400) - (1.70) (386) - (1.40)
Adjusted earnings
per share - basic 2,116 31,863,607 6.64 425 23,426,675 1.81 3,274 27,489,310 11.91
Effect of dilutive
securities
Options - 57,538 (0.01) - - - - 388 -
Adjusted earnings
per share - diluted 2,116 31,921,145 6.63 425 23,426,675 1.81 3,274 27,489,698 11.91
Note 7 Finance costs
6 months 6 months Year
ended ended ended
30 June 2007 30 June 2006 31 December 2006
Unaudited Unaudited Audited
#'000 #'000 #'000
Interest payable on bank loans and 1,265 1,360 2,684
overdraft
On loan notes - 896 896
Other interest 22 15 16
Amortisation of debt issue costs 122 208 340
1,409 2,479 3,936
Exceptional items - note 4 - 800 801
Total finance costs 1,409 3,279 4,737
Notes to the Interim Financial Report (continued)
Note 8 Share capital
At 30 June 2007 At 30 June 2006 At 31 December 2006
Unaudited Unaudited Audited
# # #
Authorised
(Ordinary Shares of #0.05 each)
# Sterling 2,098,500 2,098,500 2,098,500
Number 41,970,000 41,970,000 41,970,000
Allotted, called up and fully paid
(Ordinary Shares of #0.05 each)
# Sterling 1,754,285 1,574,285 1,574,285
35,085,706 31,485,706 31,485,706
Number
The reconciliation of the movement in share capital and share premium account is
set out below:
Share premium
account Total
Share capital share capital
Unaudited Unaudited Unaudited
#'000 #'000 #'000
At 1 January 2006 1,000 - 1,000
Issue of share capital 574 17,790 18,364
Issue expenses - (677) (677)
At 30 June 2006 1,574 17,113 18,687
Issue expenses - (1) (1)
At 31 December 2006 1,574 17,112 18,686
Issue of share capital 180 7,164 7,344
Issue expenses - (281) (281)
At 30 June 2007 1,754 23,995 25,749
Notes to the Interim Financial Report (continued)
Note 9 Business combinations
The Group made the following acquisitions during the period:
Total Total Total
6 months 6 months year
Acquisition Acquisition ended ended ended
1 2
30 June 2007 30 June 2006 31 December 2006
Unaudited Unaudited Audited
#'000 #'000 #'000 #'000 #'000
Assets acquired:
Intangible assets 74 175 249 - 163
Property, plant and equipment - 15 15 - -
Retail inventory - 281 281 - -
Current trade and other 142 289 431 - 297
receivables
Cash and cash equivalent - 18 18 - 7
Total assets acquired 216 778 994 - 467
Consideration:
Cash 236 1,159 1,395 - 1,020
Total consideration 236 1,159 1,395 - 1,020
Goodwill 20 381 401 - 553
The Group will present further disclosures with respect to the acquisition as
required by IFRS 3, "Business Contributions", in the financial statements for
the year ending 31 December 2007.
Note 10 Dividends
On 16 May 2007, the shareholders approved the payment of a 3.0p final dividend
for 2006 which equates to a dividend payment of #945,000. The dividend was paid
on 4 June 2007.
On 21 August 2007, the directors approved a 1.6p interim dividend (30 June 2005:
nil pence) which equates to a dividend payment of #563,000 (30 June 2006: #nil).
The dividend will be paid on 15 October 2007 to shareholders on the share
register at the close of business on 14 September 2007and has therefore not
been provided for in the 2007 interim results.
Appendix 1
Reconciliation of proforma UK GAAP* to IFRS
Six months ended 30 June 2007 (unaudited) Profit before tax Tax Profit after tax
#'000 #'000 #'000
Proforma UK GAAP * 2,688 (961) 1,727
IAS 12 Deferred tax on business combinations - 28 28
IAS 17 Lease incentives (1) - (1)
IAS 19 Holiday pay accrual (229) 69 (160)
IAS 38 Intangible assets amortisation (24) - (24)
IAS 39 Interest receivable recognition (59) 18 (41)
IAS 39 Interest hedging fair value 481 (137) 344
IFRS 3 Business combinations: reversal of 403 - 403
goodwill amortisation
IFRS 3,259 (983) 2,276
Six months ended 30 June 2006 (unaudited) Loss before tax Tax Loss after tax
#'000 #'000 #'000
Proforma UK GAAP * (2,307) (8) (2,315)
IAS 12 Deferred tax on business combinations - 25 25
IAS 17 Lease incentives 11 (3) 8
IAS 19 Holiday pay accrual (199) 60 (139)
IAS 39 Interest receivable recognition (25) 7 (18)
IAS 39 Interest hedging fair value 229 (69) 160
IFRS 3 Business combinations: reversal of 384 - 384
goodwill amortisation
Change in accounting policy for stock 35 (11) 24
IFRS (1,872) 1 (1,871)
Year ended 31 December 2006 (audited) Profit before tax Tax (Loss)/profit
#'000 #'000 after tax #'000
Proforma UK GAAP * 669 (903) (234)
IAS 12 Deferred tax on business combinations - 48 48
IAS 17 Lease incentives 15 (5) 10
IAS 19 Holiday pay accrual - - -
IAS 38 Intangible assets amortisation (9) - (9)
IAS 39 Interest receivable recognition (15) 4 (11)
IAS 39 Interest hedging fair value 561 (168) 393
IFRS 3 Business combinations: reversal of 779 - 779
goodwill amortisation
Change in accounting policy for stock 37 (11) 26
IFRS 2,037 (1,035) 1,002
* The UK GAAP applied in this appendix to prepare the proforma UK GAAP figures
above is defined as that which was applicable to the Group's UK GAAP statutory
financial statements for the year ended 31 December 2006.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PUURWRUPMGBG
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