TIDMIHC
RNS Number : 9695D
Inspiration Healthcare Group PLC
03 May 2017
Inspiration Healthcare Group plc
Inspiration Healthcare Group plc ("Inspiration Healthcare", the
"Company" or the "Group")
Preliminary Results for the year ended 31 January 2017
Inspiration Healthcare Group plc (AIM: IHC), the global medical
device company, today announces its preliminary results for the
twelve months ended 31 January 2017.
Highlights:
-- Revenue increased by 9.4 % to GBP14.3 million
-- International revenue up by 9.9%
-- Domestic revenue increased by 9.1%
-- R&D spend up to 4.4% of revenue
-- Inditherm product manufacturing outsourced
-- Rotherham factory closed
-- New corporate head office opened in Crawley
Commenting on the results, Neil Campbell, Chief Executive
Officer of Inspiration Healthcare Group plc, said:
"Our growth in the year ending January 2017 is extremely
pleasing, and in line with expectations, maintaining the momentum
of the private company as we transitioned fully into a public
traded company. To have achieved this at the same time as
restructuring the company is a credit to the whole team. We have
prioritised our product development and will continue to invest in
our infrastructure, staff and management systems to grow our
business and realise its full potential."
Enquiries:
Inspiration Healthcare Tel: 01455 840555
Group plc
Neil Campbell, Chief
Executive Officer
Mike Briant, Chief Financial
Officer
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Nominated Adviser & Broker Tel: 0207 397 8900
Cenkos Securities plc
Bobbie Hilliam (NOMAD)
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Cadogan PR Tel: 07771 713608
Alex Walters
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About Inspiration Healthcare
Inspiration Healthcare (AIM: IHC) is a global supplier of
medical technology for critical care, operating theatre and home
healthcare. The Company provides high quality innovative products
to patients and caregivers around the world that help to improve
patient outcomes and efficiencies of healthcare organisations with
patient focused customer service and technical support.
The Company's own brand of critical care solutions span
non-invasive respiratory management, thermoregulation and
diagnostics, and patient warming for newborns through to adults in
intensive care and the operating theatre, whilst the distribution
business supplies solutions to support specialised surgical
procedures and infusion therapies.
Present in over 50 countries worldwide, Inspiration Healthcare's
success has been built on continuous innovation, excellent customer
service and an inherent commitment to improving the quality of life
of patients, working in close collaboration with key opinion
leaders and stakeholders in the clinical and medical community
across the globe.
Chairman's Report
A year ago I introduced the first annual report of a newly
merged Group, Inspiration Healthcare Group plc. This year I am
delighted to report on the excellent progress that has been made
across the Group in its first full year of trading.
The Group's revenue increased to GBP14.3 million for the year
ended 31 January 2017 ("2017") (2016: GBP13.1 million), a rise of
9.4% over last year. The increase is measured against the 2016
revenue shown in the unaudited Proforma Consolidated Income
Statement set out overleaf (and included in last year's annual
report) as it is used for comparison by the Board, representing 12
months of trading of both Inspiration Healthcare Limited and
Inditherm plc for 2016.
As a result of the reverse acquisition of Inditherm plc by
Inspiration Healthcare Limited, the statutory basis for reporting
results for the year ended 31 January 2016 ("2016") showed revenue
of GBP12.3 million and thus reported revenue growth for 2017 is
16.7%.
Compared to the statutory results for 2016, the unaudited
Proforma Consolidated Income Statement set out overleaf, includes
an additional 20 weeks of Inditherm plc's results prior to the
reverse acquisition which has the impact on 2016 of increasing
revenue by GBP0.8 million and reducing the operating profit before
impairment charges and exceptional items by GBP0.2 million.
Proforma Consolidated Income Statement
(unaudited)
Actual Proforma
2017 2016
GBP'000 GBP'000
Revenue 14,323 13,096
Cost of sales (7,965) (7,118)
Gross profit 6,358 5,978
Operating expenses (5,913) (6,553)
Other income - 295
Operating profit/(loss) 445 (280)
Analysed as:
Operating profit before
impairment of goodwill and
intangible
Assets arising on acquisition
and exceptional items 1,163 1,109
Impairment of goodwill and
intangible assets - (517)
Exceptional items (718) (872)
Operating profit/(loss) 445 (280)
----------------------------------------- --------------------- -------------
Net Finance (Expense) /
Income (1) 3
Profit/(loss) on ordinary
activities before 444 (276)
Income tax expense (132) (136)
Profit/(loss) for the year attributable
to owners of the parent company 312 (412)
Earnings per share before
impairment of goodwill and
intangible assets arising
on acquisition and exceptional
items, attributable to the
owners of the parent company
during the period - basic
and diluted 3.4 3.4
----------------------------------------- --------------------- -------------
Adjusted earnings per share is included as, in the opinion of
the Directors, this will allow shareholders to gain a clearer
understanding of the trading performance of the Group for the
period.
It is pleasing that good sales growth was achieved both
Domestically (UK and Ireland) and Internationally, at 9.1% and
9.9%, respectively (on a proforma basis). Sales continue to do well
in the USA with our Tecotherm product and our Inspire nCPAP range
continues to grow around the world using our distribution partners
and strategic alliances.
The main fall-out from Brexit was the volatility of exchange
rates which has impacted our cost of goods, particularly of
distributed products. However, we have been able to take some
actions to partly mitigate the impact: including selective price
increases, renegotiating purchase prices as well as benefiting from
currency movements on international sales. The net result for the
Group has been a slight decline in gross margin.
Our 2017 Operating Profit (before exceptional items) at GBP1.2m
was in line with expectations and reflects an increase on the 2016
Proforma Operating Income of 5%.
The first full year results as a combined entity reflect a
continuation of the sales momentum from the privately held company
and we expect this to continue throughout next year, albeit we face
headwinds in our growth programme as a tougher regulatory
environment will slow new product introductions.
Regulatory standards for Medical Device companies have continued
to become more stringent over recent years. Patient safety is
paramount and underpins everything we do. The exhaustive testing
for verification and validation of innovative new products is
necessary to ensure the safety of our products. The Group will be
making further investments in Regulatory Affairs and R&D
resources to increase our capacity to meet the heightened
regulatory requirements and minimise any impact on speed to market
of new products.
During the year, we were delighted to attract some significant
new shareholders to the business, following a secondary placement
by the founder shareholders. The founder Director shareholders
still retain 28% of the shares.
It was a sad moment when we closed the manufacturing facility in
South Yorkshire and it is a testament to the staff that were
affected, who remained loyal and professional throughout the
process. On behalf of the Board I would like to thank them for this
and wish them well for the future. We remain convinced that this
was an important and correct decision and we will benefit from
outsourced manufacturing giving greater flexibility in the
future.
Employees
We are delighted to report that we are a Living Wage employer,
accredited by the Living Wage Foundation. The Living Wage
Foundation recognises employers that pay all employees at or above
an hourly rate calculated based on the cost of living in the
UK.
We are committed to attracting, retaining, engaging and
developing the best people. We know that creating and sustaining an
inclusive work environment is critically important, offering equal
opportunity from the Boardroom down regardless of race, gender,
gender identity or reassignment, age, disability, religion or
sexual orientation.
We have continued our policy of retaining our loyal staff
through the short-term peaks and troughs of demand. We acknowledge
the hard work and endeavour from our staff and on behalf of the
Board, I thank them most sincerely for their continued support.
Looking forward
This year, we believe we will benefit from the marketing
groundwork on our products focused around birth and the first few
moments of life, along with new products in development that should
reach the market.
We intend to strengthen our internal resources and invest in our
systems and processes to keep pace with the greater regulatory
requirements referred to above in order to enhance our platform for
future growth. Accordingly, we expect some additional expenses
going forward and that some sales will move from the first half to
the second half.
The impact of Brexit and the value of sterling still presents
some challenges to a company of our size that both imports and
exports goods. Our cash reserves and cash collection remain strong
and we believe that we are well positioned for the year ahead.
Our expectations for underlying full year growth remain robust
and unchanged albeit new product growth will inevitably be slowed
as explained above. Notwithstanding the additional revenue
investment, we plan to maintain our returns on a growing revenue
line.
Mark Abrahams
Chairman
3 May 2017
Operating and Financial Review*
Our revenue grew by 9.4% during the year ended 31 January 2017
("2017") with good growth being achieved both domestically and
internationally.
Operating profit before impairment charges and exceptional items
was GBP1.2 million (2016: GBP1.1 million on a proforma basis) and
in line with expectations. Underlying operating margin for 2017 was
8.1% (2016: 8.5%). Profit after tax was GBP0.3 million, up GBP0.7
million on 2016. Adjusted EPS** was constant at 3.4p per share.
On a statutory basis reported operating profit was GBP0.4
million for the year (2016: GBP0.1 million) with operating profit
before exceptional items of GBP1.2 million (2016: before impairment
charges and exceptional items, GBP1.3 million). Profit after tax
increased by GBP0.3 million from 2016. Adjusted EPS** declined from
4.1p to 3.4p as the statutory results for 2016 do not include a
full year of trading losses of Inditherm plc.
Revenue
From a revenue perspective, the overall performance of the Group
was in line with expectations at GBP14.3 million (2016: GBP13.1
million), an increase of 9.4%. Domestic revenue growth was 9.1% and
international revenue grew by 9.9%. On a statutory basis 2016
revenue was GBP12.3 million.
Critical Care
(GBP10.0 million, +11% year on year)
Our Critical Care business grew strongly with domestic sales up
10.4% and international sales up 13.0%. The re- organisation of the
UK salesforce in 2016 to create a dedicated team including a full
time Critical Care sales manager has reaped benefits and
underpinned the sales growth in this division. Whereas the Domestic
market is particularly important to us in our distribution model,
the real growth from our own products in the longer term will be
attained internationally. During the financial year, we have made
strong progress in both North America and Europe.
Our Technical Support department has contracts with NHS Trusts
for planned preventative maintenance. Additionally, we also carry
out ad hoc repairs chargeable by the hour and supply spare parts.
Technical Support is a core part of our business, which adds value
to distribution and helps differentiate us from competitors. Our
service offering includes 24/7 emergency hire of life support
equipment. Service revenues increased 17% year on year.
Operating Theatre
(GBP1.9 million, -5% year on year)
Our Operating Theatre business includes the original Inditherm
surgical warming products as well as some distributed products in
the UK that can add value to customers in this area. As expected,
the performance reflects a slight decline in revenue for the
products acquired from Inditherm in the reverse takeover in 2015 as
we restructured this area of the business. Not only have we
rationalised the product range to improve manufacturing efficiency,
outsourcing production and closing our Rotherham facility towards
the end of the year, we also commenced the repositioning of the
pricing proposition. By challenging the commercial offering in the
UK to offer longer term managed service contracts, thus generating
recurring revenue over three years or more rather than an outright
one-off sale, we can access NHS revenue budgets.
We expect to continue to increase the customer base and long
term revenue as we continue to roll out this new offering to the
NHS. We have been extremely pleased in the interest from new and
existing customers who were previously unable to secure the large
initial capital funding to proceed with our offering. Removing this
barrier has significantly strengthened our position in this
ever-competitive price sensitive market.
*In the Operational and Financial Review, all comparatives to
2016 are, unless otherwise stated, to the unaudited Proforma
Consolidated Income Statement for 2016 ("Proforma") as set out in
the Chairman's Report. The Proforma has the impact on 2016 of
increasing revenue by GBP0.8 million and reducing operating profit
(before impairment charges and exceptional items) by GBP0.2
million.
**EPS before impairment charges and exceptional items
Home Healthcare
(GBP2.4 million, +14% year on year)
We continue to see growth in our parenteral feeding product
offering sharing experience with other infusion based products in
the portfolio.
The industrial business of Inditherm has made a small
contribution to this segment in 2017, but following a strategic
review of the business, the decision to close the Rotherham
facility during the year resulted in this business being
discontinued.
Gross Profit
Gross Profit at GBP6.4 million increased by 6.4% over 2016
(GBP6.0 million). Gross margin declined to 44% from 46% due to the
impact of exchange rate movements between Sterling and the Euro
since "Brexit". This adversely impacted the gross margin of
Distributed products which are sourced in Euro and largely sold
domestically in Sterling. Some mitigation of the impact of exchange
rates was achieved through selected price increases and supplier
negotiations. Gross margins of Inspiration Branded products have
held up well.
Operating Expenses
The year on year increase in operating expenses (before
impairment charges and exceptional items) of GBP0.5 million is
primarily due to higher investment in people-related costs to
strengthen Sales and Marketing. Operating expenses (before
impairment charges and exceptional items) amounted to 36.3% of
revenue, improved from 37.2% in 2016.
Other Income
Other income was GBPnil in 2017 compared to GBP0.3 million in
2016, all of which related to one-time grant income received during
that year. The Company will seek to apply for grants as and when
the opportunity arises and the qualifying conditions can be met
without compromising the direction or timing of the R&D
project.
Exceptional Items
The Group presents certain items as exceptional items that are
non-recurring and significant. These relate to items which, in the
Board's judgement, need to be disclosed by virtue of their size and
incidence in order to obtain a more meaningful understanding of the
financial information. The exceptional items reported in 2017
consist of GBP0.1 million of severance costs following the change
of Group Finance Director and GBP0.6 million for the closure of the
Rotherham facility and associated impacts. See note 4 for more
detail.
Taxation
The Group has recorded an income tax expense of GBP132,000
(2016: GBP136,000). For more detail see note 5.
Cashflow
The year-end cash and cash equivalents reduced to GBP2.2 million
from GBP2.3 million in 2016. Cash generated from operations of
GBP0.8 million was offset by payment of taxation GBP0.2 million and
investing activities of GBP0.7 million. The primary areas of
investment activity related to property, plant and equipment GBP0.3
million, including the new Corporate Head Office in Crawley, and
GBP0.3 million of capitalised research and development
expenditure.
Review of Business and Future Developments
On a Group basis the future prospects are set out in the
Chairman's Report above. Due to the change in the structure of the
business following the reverse acquisition during the year ended 31
January 2016 the Directors have included within the Chairman's
Report a 12 month Proforma Consolidated Income Statement
(unaudited) for 2016 as a comparison of performance to 2017. This
comparison for 2016 is used by the Board as the basis for
comparisons of financial performance for the year. The Board
believes that overall the Annual Accounts and Consolidated
Financial Statements are fair, balanced and understandable.
Share Price during the Year
The range of market prices during the period 1 February 2016 to
31 January 2017 as 34.0p to 73.5p and the market price of the
Company's shares at 31 January 2016 was 60.5p.
Mike Briant
Chief Financial Officer
3 May 2017
Consolidated Statement of Comprehensive Income for the year
ended 31 January 2017
2017 2016
GBP'000 GBP'000
Revenue 14,323 12,279
Cost of sales (7,965) (6,764)
Gross profit 6,358 5,515
Operating expenses (5,913) (5,664)
Other operating income - 295
Operating profit 445 146
Analysed as:
Operating profit before
impairment of goodwill and
intangible
assets and exceptional items 1,163 1,305
Impairment of goodwill and
intangible assets - (517)
Exceptional items (718) (642)
Finance income 3 3
Finance costs (4) (1)
Profit before tax 444 148
Income tax expense (132) (136)
Total comprehensive income
for the year attributable
to
owners of the parent company 312 12
Earnings per share, attributable
to owners of the
parent company- basic and
diluted 1.02p 0.04p
Consolidated Statement of Financial Position as at 31 January
2017
*Restated
2017 2016
GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 535 242
Property, plant and equipment 365 166
Deferred tax asset - 45
Investments 106 100
1,006 553
Current assets
Inventories 778 780
Trade and other receivables 2,491 2,147
Cash and cash equivalents 2,165 2,319
5,434 5,246
Total assets 6,440 5,799
Liabilities
Current liabilities
Trade and other payables (2,893) (2,502)
Obligations under finance
leases (16) (17)
Deferred income (368) (340)
(3,277) (2,859)
Non-current liabilities
Deferred income (25) (72)
Obligations under finance
leases - (16)
Deferred tax liability (13) (39)
(38) (127)
Total liabilities (3,315) (2,986)
Net assets 3,125 2,813
Shareholders' equity
Called up share capital 3,067 3,067
Share premium account 9,929 9,929
Merger reserve 4,600 4,600
Reverse acquisition reserve (16,164) (16,164)
Retained earnings 1,693 1,381
Total equity attributable
to owners of the parent
company 3,125 2,813
*Restated: Split of deferred income between current and
non-current.
Consolidated Statement of Changes in Shareholders' Equity
Issued Share Reverse
share premium Merger acquisition Retained
capital account reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 January
2015 511 9,929 - (10,440) 1,540 1,540
Profit for the
year and total
comprehensive
income - - - - 12 12
Dividends paid - - - - (171) (171)
Arising on reverse
acquisition - - - (5,724) - (5,724)
Shares issued
as consideration 2,556 - 4,600 - - 7,156
At 31 January
2016 3,067 9,929 4,600 (16,164) 1,381 2,813
Profit for the
year and total
comprehensive
income - - - - 312 312
At 31 January
2017 3,067 9,929 4,600 (16,164) 1,693 3,125
Consolidated Cash Flow Statement for the year ended 31 January
2017
*Restated
2017 2016
GBP'000 GBP'000
Cash flows from operating
activities
Cash generated from operations 771 1,793
Interest paid (4) (1)
Taxation paid (203) (172)
Net cash inflow from operating
activities 564 1,620
Cash flows from investing
activities
Interest received 3 2
Purchase of property, plant
and equipment (313) (132)
Purchase of intangible
assets (58) (169)
Capitalised development
costs (327) -
Cash and cash equivalents
acquired under reverse
acquisition - 894
Acquisition of investment (6) (100)
Net cash (used in) / generated
from investing activities (701) 495
Cash flows from financing
activities
Finance leases (17) 33
Dividends paid prior to
reverse acquisition - (171)
Net cash used in financing
activities (17) (138)
Net (decrease)/ increase
in cash and cash equivalents (154) 1,977
Cash and cash equivalents
at the beginning of the
year 2,319 342
Cash and cash equivalents
at the end of the year 2,165 2,319
*Restated: prior year previously showed interest paid under
Investing activities
Notes
1 Accounting Policies
Basis of preparation
The Final Results have been prepared and approved by the
Directors in accordance with International Financial Reporting
Standards as adopted by the European Union ('Adopted IFRSs'),
issued by the International Accounting Standards Board (IASB),
including interpretations by the International Financial Reporting
Interpretations Committee (IFRIC), and the Companies Act 2006
applicable to companies reporting under IFRS. The consolidated
financial statements are prepared under the historical cost
convention, as modified for any financial assets which are stated
at fair value through operating profit or loss and for share based
payments which are measured at fair value.
The consolidated financial statements cover the twelve months
ended 31 January 2017. The financial statements for the comparative
twelve months ended 31 January 2016 represent the substance of the
reverse acquisition of Inditherm plc and are those of Inspiration
Healthcare Limited.
This announcement does not constitute statutory accounts within
the meaning of Section 434 of the Companies Act 2006. This
announcement has been agreed with the Company's auditors for
release. It contains information extracted from the audited
financial statements of the Group for the year ended 31 January
2017 which were approved by the Board on 3 May 2017 and include an
audit report which was unqualified and which did not contain
a statement under Section 498 of the Companies Act 2006.
Alternative financial measures
In the reporting of its financial performance, the Group uses
certain measures that are not defined under IFRS, the Generally
Accepted Accounting Principles (GAAP) under which the Group
reports. The Directors believe that these non-GAAP measures assist
with the understanding of the performance of the business. These
non-GAAP measures are not a substitute for, or superior to, any
IFRS measures of performance but they have been included as the
Directors consider them to be an important means of comparing
performance year-on-year and they include key measures used within
the business for assessing performance.
2 Segmental analysis
Inspiration Healthcare Group's sales activities are split into
three market sectors, Critical Care, Operating Theatre and Home
Healthcare and the revenue segments are defined and reported in Our
business and the Operating and financial review. There is no
inter-segment trading.
The Group's Chief Operating Decision Maker is the Board of
Directors. Following the restructuring during the year of the
Group's manufacturing operations and the integration of the
activities previously conducted in the Rotherham facility into the
function-based management structure at our Leicester and Crawley
facilities, the Board of Directors consider that it is more
appropriate to report results as one single business segment, i.e.
Critical Care Medical Devices. This is consistent with management
accounting information reported regularly to the Board.
3 Revenue
Geographical analysis of revenue for the years ended 31 January
2017 and 31 January 2016 is as follows:
*Restated
2017 2016
GBP'000 GBP'000
UK 9,770 8,505
Europe 2,728 2,048
Asia Pacific 438 321
Middle East &
Africa 424 833
Americas 963 572
Total 14,323 12,279
*Restated: Prior year geographical split has been reanalysed: UK
increased by GBP120,000, Europe reduced by GBP279,000, Asia Pacific
reduced by GBP65,000, Middle East & Africa reduced by
GBP11,000, Americas increased by GBP235,000.
Significant categories
of revenue
2017 2016
GBP'000 GBP'000
Goods sold 12,543 10,586
Services 1,780 1,693
14,323 12,279
No single customer accounted for more than 10% of revenue.
4 Exceptional items
2017 2016
GBP'000 GBP'000
Professional fees in relation
to the reverse acquisition (62) 472
Severance and related costs 136 170
Closure of facilities 644 -
Total exceptional items 718 642
5 Taxation
(a) Analysis of tax charge for the year
2017 2016
GBP'000 GBP'000
Domestic current year tax
UK corporation tax -
current year 153 268
prior year adjustment (40) -
UK corporation tax credit
-
current year - (20)
prior year adjustment - (81)
Total current tax 113 167
Deferred tax
origination and reversal of
temporary timing differences 23 (29)
prior year adjustment (4) (2)
Total deferred tax 19 (31)
Tax on profit on ordinary
activities 132 136
(b) Factors affecting tax charge for the year
The tax assessed for the year is higher (2016: higher) than the
standard rate of corporation tax in the UK 20% (2016: 20.16%) as
explained below:
2017 2016
GBP'000 GBP'000
Profit on ordinary activities
before taxation 444 148
---------------------------------- -------------------------- ----------------
Tax using the UK corporation
tax rate of 20% (2016: 20.16%) 89 30
Effects of:
Fixed asset differences 5 -
Non-deductible expenses 128 330
Chargeable losses - (57)
Tax losses utilised for research
and development claim 10 28
Additional deduction for research
and development (52) (19)
Adjustments to tax charge from
pre reverse acquisition earnings - (73)
Adjustments to tax charge in
respect of prior years (44) (2)
136 237
Research and development tax
credit -
current year (4) (20)
prior year - (81)
Total tax charge/(credit) 132 136
(c) Factors that may affect future tax charges
The group has gross unused losses estimated at GBP7,596,000.
Brought forward losses transferred to the Group due to the reverse
acquisition amount to GBP7,373,000 and are potentially available
for relief against future trading profits.
6 Earnings per ordinary share
Basic earnings per share for the year is calculated by dividing
the profit attributable to ordinary shareholders for the year after
tax by the weighted average number of shares in issue. Basic
diluted earnings per share is calculated by adjusting the weighted
average number of ordinary shares in issue to assume conversion of
all potential dilutive ordinary shares.
2017 2016
GBP'000 GBP'000
Profit
Profit attributable to equity
holders of the company 312 12
Impairment of goodwill and
intangible assets - 517
Exceptional items 718 642
Numerator for adjusted earnings
per share calculation 1,030 1,171
The weighted average number of shares in issue and the diluted
weighted average number of shares in issue were as follows:
2017 2016
Shares
Weighted average number of ordinary
shares in issue during the year
for the purposes of basic earnings
per share 30,667,548 28,665,055
Dilutive effect of potential
Ordinary shares:
share options - 55,000
Diluted weighted number of shares
in issue during the year
for the purposes of diluted
earnings per share 30,667,548 28,720,055
The basic and diluted earnings per share for the year are as
follows:
Basic Diluted Basic Diluted
2017 2017 2016 2016
pence pence pence pence
Earnings per share 1.02 1.02 0.04 0.04
The adjusted basic and diluted earnings per share for the year
are as follows:
Basic Diluted Basic Diluted
2017 2017 2016 2016
pence pence pence pence
Adjusted earnings
per share 3.36 3.36 4.09 4.08
An adjusted earnings per share and an adjusted diluted earnings
per share have also been calculated as in the opinion of the
Directors this will allow shareholders to gain a clearer
understanding of the trading performance of the Group. These
adjusted earnings per share exclude:
-- Re-organisation and other significant non-recurring costs
-- Impairment of goodwill and intangible assets
-- The taxation effect at the appropriate rate on adjustments
Other than GBP110,000 of dilapidation cost, tax on exceptional
items has been provisionally disallowed pending finalisation of the
group tax computations. The tax impact of this is GBP22,000.
7 Intangible assets
Development Intellectual Software
costs property costs Goodwill Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 February
2015 - 395 59 - 454
Arising on reverse
acquisition - 139 - 378 517
Additions on
reverse acquisition 129 136 - - 265
Capitalised
in the year - 1 168 - 169
Disposals in
year - (10) - - (10)
At 1 February
2016 129 661 227 378 1,395
Capitalised
in the year 327 - 58 - 385
At 31 January
2017 456 661 285 378 1,780
Amortisation
At 1 February
2015 - 318 - - 318
Additions on
reverse acquisition 126 136 - - 262
Impairment of
intangible assets - 139 - 378 517
Charge in the
year 1 33 26 - 60
Disposals in
year - (4) - - (4)
At 1 February
2016 127 622 26 378 1,153
Charge in the
year 1 33 58 - 92
At 31 January
2017 128 655 84 378 1,245
Net book value
At 31 January
2017 328 6 201 - 535
At 31 January
2016 2 39 201 - 242
8 Property, plant and equipment
Plant,
Fixtures machinery,
Leasehold and office Motor
improvements fittings equipment vehicles Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 1 February
2015 5 32 159 23 219
Additions on
reverse acquisition - 237 198 10 445
Reclassification - - 503 - 503
Additions in
the year - - 132 - 132
Disposals in
year - - (14) - (14)
At 1 February
2016 5 269 978 33 1,285
Additions in
the year 221 1 91 - 313
Disposals in
year - (6) (76) - (82)
At 31 January
2017 226 264 993 33 1,516
Depreciation
At 1 February
2015 3 23 92 11 129
Additions on
reverse acquisition - 234 168 10 412
Reclassification - - 474 - 474
Charge in the
year 1 3 108 6 118
Disposals in
year - - (14) - (14)
At 1 February
2016 4 260 828 27 1,119
Charge in the
year 2 2 102 6 112
Disposals in
year - (4) (76) - (80)
At 31 January
2017 6 258 854 33 1,151
Net book value
At 31 January
2017 220 6 139 - 365
At 31 January
2016 1 9 150 6 166
9 Cash and cash equivalents
Cash and cash equivalents comprise solely of cash at bank and
cash in hand held by the Group.
The carrying amounts of the Group's cash and cash equivalents
are denominated in the following currencies:
2017 2016
GBP'000 GBP'000
Pounds sterling 1,715 1,979
Euro 77 160
US Dollars 373 142
JPY - 38
2,165 2,319
10 Provision for other liabilities and charges
The provision for closure of facilities relates to the
exceptional cost taken in the year and includes redundancy,
dilapidations, project management, obsolete inventory and dual
running lease and similar costs. The provision has arisen due to
expected timing of cash outflows along with associated uncertainty
regarding their final values, but is expected to be fully utilised
in the coming financial year.
Closure
of
Regulatory facilities Total
GBP'000 GBP'000 GBP'000
At 31 January 2016 103 - 103
Charged / (credited)
to the Income Statement
- Additional provisions - 644 644
- Unused amounts reversed (62) - (62)
- Used during the period (41) (272) (313)
-------------------------- ---------------------------------- ------------- ----------
At 31 January 2017 - 372 372
11 Note to the Consolidated Statement of Cash Flows
2017 2016
GBP'000 GBP'000
Profit before taxation 444 148
Adjustments for:
Net finance costs / (income) 1 (2)
Impairment of goodwill - 378
Impairment of intangible assets - 139
Depreciation and amortisation 204 178
Loss on disposal of intangible
asset - 6
Loss on disposal of tangible asset 2 -
Decrease in inventories 2 14
(Increase) / decrease in trade
and other receivables (461) 379
Increase in trade and other payables 598 579
(Decrease) in deferred income (19) (26)
Net cash generated from operations 771 1,793
------------------------------------------ ------------------------- ---------------
12 Events after the reporting period
The closure of the corporate head office and manufacturing site
at Rotherham was completed and lease surrendered on 10(th) March
2017 on completion of its term.
The new corporate office and R&D centre at Crawley, West
Sussex officially opened in March 2017 and former R&D facility
at Albourne was vacated.
There was no additional cost other than as recognised at balance
sheet date.
Forward looking statements
Certain statements contained in this document constitute
forward-looking statements. Such forward-looking statements involve
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Inspiration Healthcare
Group plc to be materially different from any future results,
performance or achievements expressed or implied by such
statements. Such risks, uncertainties and other factors include,
among others: general economic conditions and business
environment.
Annual Report
A further announcement will be made when the 2017 Annual Report
and Financial Statements is available on the Company's website
(www.inspiration-healthcare.com) and copies are sent to
shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GMGGKNZZGNZM
(END) Dow Jones Newswires
May 03, 2017 02:00 ET (06:00 GMT)
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