TIDMMCM
RNS Number : 2833D
Motivcom PLC
27 March 2014
27 March 2014
Motivcom plc
("Motivcom", "the Company" or "the Group")
Final Results for the year ended 31 December 2013
Motivcom plc (AIM:MCM), a leading business services group
offering incentives & loyalty expertise and meetings &
event management services to major blue-chip corporate clients, is
pleased to announce its final results for the year ended 31
December 2013.
HIGHLIGHTS
-- Headline operating profit* increased by 5% to GBP4,375,000 (2012: GBP4,147,000)
-- Headline profit before tax increased by 6% to GBP4,359,000 (2012: GBP4,121,000)
-- Headline basic earnings per share++ increased by 11% to 12.00 pence (2012: 10.79 pence)
-- Operating profit increased by 7% to GBP2,900,000 (2012: GBP2,713,000)
-- Profit before tax increased by 13% to GBP2,817,000 (2012: GBP2,502,000)
-- Basic earnings per share increased by 5 % to 6.86 pence (2012: 6.52 pence)
-- Proposed final dividend of 3.6 pence per share to be paid on
18 June 2014, making a total dividend of 5.4 pence per share (2012:
4.5 pence per share), an increase of 20%
-- Net cash balances at 31 December 2013 of GBP6,388,000 (2012:
GBP11,993,000) having accounted for, inter alia, April 2013 share
tender offer cost of GBP3,364,000
*Operating profit of GBP2,900,000 (2012: GBP2,713,000) plus
amortisation and impairment of intangible assets of GBP1,500,000
(2012: GBP2,075,000) and acquisition expenses of GBPnil (2012:
GBP59,000) less contingent consideration adjustment credit of
GBP25,000 (2012: GBP700,000).
Profit before tax of GBP2,817,000 (2012: GBP2,502,000) plus
amortisation and impairment of intangible assets of GBP1,500,000
(2012: GBP2,075,000), acquisition expenses of GBPnil (2012:
GBP59,000) and unwinding of discount relating to contingent
consideration liability of GBP67,000 (2012: GBP185,000), less
contingent consideration adjustment credit of GBP25,000 (2012:
GBP700,000).
++ See reconciliation in Note 5
Commenting on the results, Colin Lloyd, Chairman of Motivcom
plc, said: "The Board is pleased to announce an increase in
headline operating profit during the period, although budgetary
pressures have continued to impact the Meetings and Events
business, resulting in the overall outcome for the year being
slightly lower than the Board's expectations. The Group continues
to make good progress on its stated five year strategy, with the
Motivation division performing particularly well, increasing
headline operating profit by 72%, and the Employee Benefits market
also seeing uplift during the period, particularly in the SME
sector.
Given the Group's strong cash balance and ongoing cash
generation, the Board has proposed a final dividend of 3.6 pence, a
20% increase over 2012. The Group is cautiously optimistic about
the Group's prospects, assuming no material change to the economic
environment."
- Ends -
For further information:
Motivcom
Sue Hocken Tel: +44 (0) 845 053 5529
sue.hocken@motivcom.com www.motivcom.com
Grant Thornton Corporate Finance
Philip Secrett / Salmaan Khawaja / Tel: +44 (0)207 383 5100
Jamie Barklem
philip.j.secrett@uk.gt.com www.gtuk.com
Numis Securities Limited
David Poutney/James Serjeant Tel: +44 (0)207 383 5100
Media enquiries:
Abchurch
Joanne Shears / Quincy Allan Tel: +44 (0) 207 398 7710
joanne.shears@abchurch-group.com www.abchurch-group.com
CHAIRMAN'S STATEMENT
I am pleased to report that the results for the year to 31
December 2013 show an increase over the outcome for 2012, albeit
slightly below the Board's expectations. As set out in the interim
report for the period ended 30 June 2013, the event management and
live production areas have continued to see budgetary pressures and
reducing numbers of delegates impacting volume, average spend per
head and profitability. Whilst a flat performance was expected for
the events business area in 2013, the final outturn was impacted by
lower than expected new business intake in this area towards the
end of the year. The Board remains cautious about the levels of new
events business in the Meetings & Events business.
The Group remains cash generative and maintains a strong balance
sheet with average net cash of circa GBP3 million which enables the
continuation of a progressive dividend policy. The April 2013 share
tender offer successfully returned GBP3.3 million of cash to
shareholders.
Financial update
Headline operating profit increased by 5% to GBP4,375,000 (2012:
GBP4,147,000) on a gross profit that decreased by 2% to
GBP28,717,000 (2012: GBP29,317,000). Headline profit before tax
increased by 6% to GBP4,359,000 (2012: GBP4,121,000). Headline
basic earnings per share increased by 11% to 12.00 pence (2012:
10.79 pence).
Net cash balances stood at GBP6,388,000 (2012: GBP11,933,000)
after the Company's share tender offer in April 2013 which cost
GBP3.4 million. The 2012 net cash balance contained an exceptional
GBP3.5 million of cash relating to client pass through costs that
were paid out in early January 2013.
Dividends
In view of the cash generative nature of the Group's business,
the Company proposes a final dividend for 2013 of 3.6 pence per
share. This makes a total dividend per share of 5.4 pence for 2013
(2012: total dividend of 4.5 pence), an increase of 20%. This final
dividend will be paid on 18 June 2014 to shareholders on the
register at close of business on 4 April 2014.
The Board intends to grow the dividend in real terms whilst
aiming for earnings cover of two times over the medium term.
Strategy
As stated in my previous reports the Board has set a clear and
achievable five year strategy for the Group covering people and
client development, new products and services as well as executing
appropriate acquisitions as they arise. This strategy is being met
through the various developments set out in this report. The Board
believes that the strategy will continue to build on the core
strengths of the Group and places Motivcom in an excellent position
to take advantage of the reported upturn in the economy.
Divisional Reports
Motivation
The Motivation division increased gross profit by 18% to GBP6.9
million and divisional headline operating profit increased by 72%
to GBP2.6 million. The increase in gross profit has dropped
directly to the operating profit of the division reflecting the
upside of growing scale in the operation combined with tight cost
control. Whilst some modest investment in operating resources will
be required in 2014 to meet the demands of a growing client base,
the division maintains a positive outlook.
Motivation programme activity developed well in 2013; our
clients continue to recognise the positive impact of employee
engagement on productivity, customer satisfaction and employee
attrition. In response to slow decision making in terms of new
business, there was an increased focus on existing client
development which proved fruitful. In addition our increasing
expertise in digital marketing for new business lead generation is
working well, and a number of new client wins in early 2014 is
testament to that success.
Voucher and gift card volumes were down 3% on 2012 to GBP66
million. Whilst slightly disappointing this is more a reflection of
certain one off voucher based promotions in early 2012 rather than
a poor 2013. Operational efficiencies were delivered from a
continued migration from paper vouchers to plastic gift cards with
49% of the volume on plastic at the end of 2013. A strong end to
the year indicates a positive sentiment from our wide client base
in this area.
Following a slightly hesitant start to the year, Spree, the
Group's prepaid MasterCard(R) product, has continued to expand. In
2013, load values were up 10% to GBP184 million (2012: GBP170
million). This growth was primarily driven by the expansion of
existing card programmes which also benefited from improved
profitability as the investment in data analytics and marketing to
our existing cardholder base showed good returns.
Promotions
In the Promotions division, gross profit increased by 9% to
GBP9.3 million but divisional headline operating profits fell by
26% from GBP1 million to GBP0.8 million. The operating loss in
Summersault Communications widened by GBP0.1 million in 2013 and
final margins in fixed fee business were lower than expected.
Employee Benefits
All Employee Benefit markets continued to see healthy growth in
2013. The SME market remained strong, with employers looking to
provide more to staff without significant cost. We also re-enforced
our position in the Public sector, both winning a number of
significant new contracts and also retaining existing ones.
Innovation and market leading product led to a record year for new
business intake and retention levels for our existing clients
exceeded expectations. Testimony to this was our award for 'Best
Voluntary Benefits provider of the Year' at the Workplace Savings
and Benefits Awards in October 2013.
2013 was another good year for Allsave, the Group's flagship
child care provider despite pressure on fee rates due to a highly
competitive market place and a reduction in voucher value for
higher rate taxpayers. Pleasingly the number of scheme members grew
by 11% which we believe outperformed the market. Client retention
remains a major strength in the business as client relationships
are secured and enhanced through excellent customer service and
client activity. As a result we continue to grow existing schemes
year on year. With the announcement of the new Tax Free Childcare
("TFC") Scheme by the Government from autumn 2015, Allsave has been
working closely with HMRC in the TFC consultation process, to input
into the design of the new TFC scheme.
The outlook for 2014 looks particularly promising for this area
of the business. Our Intermediary relationships are strengthening
and marketing campaigns are resulting in a healthy pipeline of
leads with good conversion expected. Quarter 2 will see the launch
of a portfolio of salary sacrifice products and voluntary benefits
which will secure our commitment to the B2B market to both existing
clients and new prospects.
Sales Promotion
2013 was both a challenging and positive year for fixed fee
sales promotions at P&MM. Sales were strong but margins were
lower than anticipated. We nevertheless ended the year with good
figures and a positive outlook.
The Board is confident about 2014 as we have recently recruited
some particularly experienced business developers. We continue to
look at business structures in order to improve both our
profitability and client service and have exciting development
opportunities with long term clients that should help us have a
strong year.
Treatme, our in house experience and activity brand, has bedded
into the Group, meeting the challenges of its relocation from
Chester to Milton Keynes and the employment of a whole new customer
service team. We began implementing a strategy of becoming a market
leading player through a new website, improved customer journey and
increased breadth and depth of product offering, whilst maintaining
a firm control on marketing costs. Treatme is now in a very
advantageous position to move forward and 2014 is already looking
positive with all the key KPIs improving.
Our Entice customer loyalty proposition was significantly
re-engineered during the course of the year which resulted in
excellent new client confirmations in the latter part of 2013 for
delivery in 2014. Further major investment is being made in the
product and talent during 2014 from which we expect to deliver
further continued growth during the year.
Overall, although the markets we operate in remain very
competitive, we are confident we can continue to outperform the
market.
Meetings & Event Management
Gross profit in the Events division fell by 18% to GBP12.2
million and divisional headline operating profits decreased by 50%
to GBP0.9 million. Whilst venue find volumes were 24% above budget
the event and live production areas continued to see budgetary
pressures and reducing numbers of delegates impacting volume,
average spend per head and profitability. Expected new business
intake towards the end of the year in this area was also lower than
expected.
2013 has been a year of evolution for the Meetings and Events
division. Following a fundamental strategic review, the business is
being reorganised under one primary brand, Zibrant, and into three
core operating areas. These will focus on meeting booking, meeting
management and creative production and communications. These core
functions will provide each market sector with more specialist
skill sets and provide more clarity of message to prospective
clients.
Gross profit in 2014 is expected to be maintained at the 2013
level. Our cost reduction programme continued in 2013 and will
continue into 2014 as we re-engineer and right-size the
business.
During this time we have also invested in the Events division,
recruiting new creative talent into our live creative production
area to strengthen our competitive offering and win new business.
In the meetings booking area we are investing in new software to
improve the product offering and reduce cost of delivery.
The anticipated upturn in the events business has, to date, not
materialised and the Board remains cautious about the Meeting &
Events area of the business. However, there has been a gradual
recovery in the meeting booking environment which we expect to
continue into 2014 and beyond. This recovery coupled with the
continued restructure of our event management services provides a
platform for medium term growth.
Outlook
The Group is cautiously optimistic about the Group's prospects,
assuming no material change to the economic environment.
Colin Lloyd
Chairman
26 March 2014
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2013
Year ended Year ended
31 31
December 2013 December 2012
Note GBP000 GBP000
Revenue 2 95,990 106,590
Cost of sales (67,273) (77,273)
-------------- --------------
Gross profit 28,717 29,317
Administrative expenses (24,342) (25,170)
Amortisation and impairment of
intangibles (1,500) (2,075)
Acquisition expenses - (59)
Contingent consideration adjustment 25 700
-------------- --------------
Operating profit 2,900 2,713
Interest expense 3 (151) (291)
Interest income 68 80
-------------- --------------
Profit before income tax 2,817 2,502
Income tax expense 4 (896) (572)
-------------- --------------
Profit for the period 1,921 1,930
============== ==============
Attributable to:
Equity holders of the Company 1,921 1,930
============== ==============
Earnings per share for profit
attributable to the equity holders
of the Company during the year
(expressed in pence)
- basic 5 6.86 6.52
============== ==============
- diluted 5 6.81 6.35
============== ==============
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2013
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
Profit for the period 1,921 1,930
Other comprehensive income:
Items that will be reclassified
subsequently to profit or loss
Deferred tax on property 52 42
-------------- --------------
Other comprehensive income, net
of tax 52 42
-------------- --------------
Total comprehensive income for
the period 1,973 1,972
============== ==============
Attributable to:
Equity holders of the Company 1,973 1,972
============== ==============
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER 2013
Year ended Year ended
31 31 December
December 2013 2012
GBP000 GBP000
ASSETS
Non-current assets
Property, plant and equipment 4,433 4,623
Intangible assets 22,149 23,649
--------------- -------------
26,582 28,272
--------------- -------------
Current assets
Inventories 798 743
Trade and other receivables 24,241 22,475
Cash and cash equivalents 10,188 13,933
--------------- -------------
35,227 37,151
--------------- -------------
Total assets 61,809 65,423
=============== =============
EQUITY
Capital and reserves attributable
to the Company's equity holders
Share capital 140 155
Share premium account 9,944 9,944
Own shares (1,016) (1,083)
Capital redemption reserve 15 -
Other reserves 75 75
Retained earnings 10,872 13,696
--------------- -------------
Total equity 20,030 22,787
=============== =============
LIABILITIES
Non-current liabilities
Borrowings 1,594 1,800
Deferred income tax liabilities 362 329
Provisions - 267
--------------- -------------
1,956 2,396
--------------- -------------
Current liabilities
Trade and other payables 36,938 39,455
Current income tax liabilities 245 138
Borrowings 2,193 200
Provisions 447 447
--------------- -------------
39,823 40,240
--------------- -------------
Total liabilities 41,779 42,636
=============== =============
Total equity and liabilities 61,809 65,423
=============== =============
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2013
Year ended Year ended
31 31 December
December 2013 2012
Note GBP000 GBP000
Cash flows from operating activities
Cash generated from operations 7 636 8,662
Interest paid (97) (89)
Income tax paid (752) (1,110)
--------------- -------------
Net cash (used in)/generated from
operating activities (213) 7,463
--------------- -------------
Cash flows from investing activities
Acquisition of subsidiaries, net
of cash acquired (309) (552)
Purchases of property, plant and
equipment (PPE) (401) (239)
Proceeds on disposal of PPE - 658
Interest received 68 80
--------------- -------------
Net cash used in investing activities (642) (53)
--------------- -------------
Cash flows from financing activities
Payment of dividends (1,393) (1,287)
Payments to acquire own shares (3,364) (91)
Proceeds from issue of shares 67 262
Repayments of borrowings 1,800 (3,550)
--------------- -------------
Net cash used in financing activities (2,890) (4,666)
--------------- -------------
Net (decrease)/increase in cash
and cash equivalents (3,745) 2,744
Cash and cash equivalents at beginning
of period 13,933 11,189
--------------- -------------
Cash and cash equivalents at end
of period 10,188 13,933
=============== =============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2013
Share Share Own Capital Other Retained Total
capital premium shares redemption reserves earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January
2012 155 9,944 (1,254) - 75 13,026 21,946
Dividends paid - - - - - (1,287) (1,287)
Share based payments - - - - - 24 24
Own shares disposed
of on exercise of
options - - 262 - - - 262
Purchase of own shares - - (91) - - (91)
Deferred tax on equity
share based payments - - - - - (39) (39)
--------- --------- -------- ------------ ---------- ---------- ----------
Transactions with
owners - - 171 - - (1,302) (1,131)
--------- --------- -------- ------------ ---------- ---------- ----------
Profit for the period - - - - - 1,930 1,930
Other comprehensive
income:
* Deferred tax on property - - - - - 42 42
--------- --------- -------- ------------ ---------- ---------- ----------
Total comprehensive
income for the period - - - - - 1,972 1,972
--------- --------- -------- ------------ ---------- ---------- ----------
Balance at 31 December
2012 155 9,944 (1,083) - 75 13,696 22,787
Dividends paid - - - - - (1,393) (1,393)
Share based payments - - - - - 8 8
Own shares disposed
of on exercise of
options - - 67 - - - 67
Purchase and cancellation
of own shares (15) - - 15 - (3,364) (3,364)
Deferred tax on equity
share based payments - - - - - (48) (48)
--------- --------- -------- ------------ ---------- ---------- ----------
Transactions with
owners (15) - 67 15 - (4,797) (4,730)
--------- --------- -------- ------------ ---------- ---------- ----------
Profit for the period - - - - - 1,921 1,921
Other comprehensive
income:
Deferred tax on property - - - - - 52 52
--------- --------- -------- ------------ ---------- ---------- ----------
Total comprehensive
income for the period - - - - - 1,973 1,973
At 31 December 2013 140 9,944 (1,016) 15 75 10,872 20,030
========= ========= ======== ============ ========== ========== ==========
NOTES TO THE FINANCIAL INFORMATION
1 Basis of information in this announcement
The financial information in this announcement does not
constitute the Company's statutory accounts for the years ended 31
December 2013 or 31 December 2012 but is derived from those
accounts.
Statutory Accounts for 2012 have been delivered to the Registrar
of Companies and those for 2013 will be delivered following the
Company's annual general meeting. The auditor has reported on those
accounts; their reports were (i) unqualified, (ii) did not include
a reference to any matters to which the auditor drew attention by
way of emphasis without qualifying their report and (iii) did not
contain any statement under section 498 (2) or (3) of the Companies
Act 2006.
This announcement has been prepared on the basis of the Group's
accounting policies. These are set out in its Annual Report and
Accounts for the year ended 31 December 2012 which is available on
the Group's website (www.motivcom.com).
The financial statements are prepared on a going concern basis.
In considering going concern, the directors have reviewed the
Group's future cash requirements and earnings projections. The
directors believe these forecasts have been prepared on a prudent
basis and have also considered the impact of a range of potential
changes to trading performance. The directors have concluded that
the Group should be able to operate within its current facilities
and comply with its banking covenants for the foreseeable future
and therefore believe it is appropriate to prepare the financial
statements of the Group on a going concern basis. This is supported
by the Group's liquidity position at the year end.
2 Segment information
At 31 December 2013 the Group is organised into three main
business segments - (1) development and administration of third
party motivation and incentive programmes ("Motivation") - (2) the
provision of incentive travel, live events and venue find
("Events") - (3) trade and consumer sales promotions, employee
benefit products and communications ("Promotions"). Unallocated
costs represent corporate and share-based payment expenses.
The segment results for the year ended 31 December 2013 are as
follows:
Motivation Events Promotions Unallocated Group
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue from external
clients 33,270 33,077 29,341 302 95,990
=========== ========= =========== ============ ==========
Inter-segment revenues 3,422 377 67 (3,866) -
=========== ========= =========== ============ ==========
Gross profit 6,903 12,232 9,280 302 28,717
Administrative expenses (4,307) (11,340) (8,507) (188) (24,342)
----------
Headline operating profit 2,596 892 773 114 4,375
=========== ========= =========== ============
Amortisation and impairment
of intangibles (1,500)
Acquisition expenses -
Contingent consideration
adjustment 25
----------
Operating profit 2,900
Net interest expense (83)
Profit before tax 2,817
==========
The segment results for the year ended 31 December 2012 are as
follows:
Motivation Events Promotions Unallocated Group
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue from external
clients 38,236 44,439 23,915 - 106,590
=========== ========= =========== ============ ==========
Inter-segment revenues 4,038 414 559 (5,011) -
=========== ========= =========== ============ ==========
Gross profit 5,867 14,903 8,547 - 29,317
Administrative expenses (4,357) (13,105) (7,498) (210) (25,170)
----------
Headline operating profit 1,510 1,798 1,049 (210) 4,147
=========== ========= =========== ============
Amortisation and impairment
of intangibles (2,075)
Acquisition expenses (59)
Contingent consideration
adjustment 700
----------
Operating profit 2,713
Net interest expense (211)
Profit before tax 2,502
==========
The Group's business is divided into two main streams -
Incentives and Loyalty ("Incentives") and Meetings and Event
Management ("Meetings"). Incentives comprises the segment results
of Motivation and Promotions but also includes the motivation
business of AYMTM Limited included in Events. Meetings comprises
the segment results of Events less the motivation business of AYMTM
Limited. The Group recognises that this additional information
enables its shareholders better appreciate the nature of its
business.
The analysis for the year ended 31 December 2013 is as
follows:
Incentives Meetings Unallocated Group
GBP000 GBP000 GBP000 GBP000
Revenue from external
clients 72,299 23,389 302 95,990
=========== ========= ============ ==========
Inter-segment revenues 3,489 377 (3,866) -
=========== ========= ============ ==========
Gross profit 17,430 10,985 302 28,717
Administrative expenses (13,765) (10,389) (188) (24,342)
----------
Headline operating profit 3,665 596 114 4,375
=========== ========= ============
Amortisation and impairment
of intangibles (1,500)
Acquisition expenses -
Contingent consideration
adjustment 25
----------
Operating profit 2,900
Net interest expense (83)
Profit before tax 2,817
==========
The analysis for the year ended 31 December 2012 is as
follows:
Incentives Meetings Unallocated Group
GBP000 GBP000 GBP000 GBP000
Revenue from external
clients 69,287 37,303 - 106,590
=========== ========= ============ ==========
Inter-segment revenues 4,597 414 (5,011) -
=========== ========= ============ ==========
Gross profit 16,114 13,203 - 29,317
Administrative expenses (12,836) (12,124) (210) (25,170)
----------
Headline operating profit 3,278 1,079 (210) 4,147
=========== ========= ============
Amortisation and impairment
of intangibles (2,075)
Acquisition expenses (59)
Contingent consideration
adjustment 700
----------
Operating profit 2,713
Net interest expense (211)
Profit before tax 2,502
==========
The home country of the Company and its subsidiaries is England.
The Group's sales are mainly in countries within the UK and the
eurozone and, allocated on the basis of the country in which the
customer is located, are as follows:
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
UK 92,628 101,696
Rest of Europe 2,053 4,037
Other countries 1,309 857
95,990 106,590
============== ==============
No client represented greater than 10% of Group revenue in
either 2013 or 2012.
3 Interest expense
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
Interest expense:
- bank borrowings 78 89
- debt finance costs 6 17
* unwinding of discount relating to contingent
consideration liability 67 185
151 291
============== ==============
4 Income tax expense
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
Current tax 897 684
Under/(over) provision of tax for prior
year 21 (5)
-------------- --------------
918 679
Deferred tax - origination and reversal
of temporary differences (16) (123)
Deferred tax - effect of change in tax
rate (6) 16
896 572
============== ==============
The tax on the Group's profit before tax differs from the
theoretical amount that would arise using the weighted average tax
rate applicable to profits of the consolidated companies as
follows:
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
Profit before tax 2,817 2,502
============== ==============
Tax calculated at domestic tax rates
applicable to profits in the United
Kingdom 896 613
Under/(over) provision of tax for prior
year 21 (5)
Expenses not deductible for tax purposes (16) 102
Deduction for share options exercised (5) (138)
Tax charge 896 572
============== ==============
The weighted average applicable tax rate was 31.8% (2012:
22.9%).
5 Earnings per share
Basic
Basic earnings per share is calculated by dividing the profit
attributable to equity holders of the Company by the weighted
average number of ordinary shares in issue during the period.
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
Profit attributable to equity holders
of the Company 1,921 1,930
-------------- --------------
Weighted average number of ordinary
shares in issue (thousands) 28,002 29,620
Basic earnings per share in pence 6.86 6.52
============== ==============
Diluted
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all contracted dilutive potential ordinary shares.
The Company has only one category of dilutive potential ordinary
shares, share options.
The calculation is performed for the share options to determine
the number of shares that could have been acquired at fair value
(determined as the average annual market share price of the
Company's shares) based on the monetary value of the subscription
rights attached to outstanding share options and taking account of
the yet unexpensed share based payment charge relating to those
options. The number of shares calculated as above is compared with
the number of shares that would have been issued assuming the
exercise of the share options. Tranches two to four of the options
granted to C T Lloyd have been excluded from this calculation as
all the conditions attaching to the proposed options had not been
met at 31 December 2013.
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
Profit attributable to equity holders
of the Company 1,921 1,930
-------------- --------------
Weighted average number of ordinary
shares in issue (thousands) 28,002 29,620
Adjustment for share options (thousands) 212 776
-------------- --------------
Weighted average number of ordinary
shares for diluted earnings per share
(thousands) 28,214 30,396
Diluted earnings per share in pence 6.81 6.35
============== ==============
Headline Basic
Headline basic earnings per share is calculated by dividing the
profit attributable to equity holders of the Company plus (i) the
amortisation of intangible assets, (ii) acquisition expenses and
(iii) adjustments to contingent consideration by the weighted
average number of ordinary shares in issue during the period.
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
Profit attributable to equity holders
of the Company 1,921 1,930
Amortisation and impairment of intangibles
(after deduction of tax) 1,397 1,577
Acquisition expenses - 59
Unwinding of discount relating to contingent
consideration liability (after deduction
of tax) 67 165
Contingent consideration adjustment
(after adding back tax) (25) (534)
-------------- --------------
Headline profit attributable to equity
holders of the Company 3,360 3,197
-------------- --------------
Weighted average number of ordinary
shares in issue (thousands) 28,002 29,620
Headline basic earnings per share in
pence 12.00 10.79
============== ==============
6 Dividends
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
Dividends paid
- 2012 final dividend of 3.0 pence per
share 803 835
- 2013 interim dividend of 1.80 pence
per share 590 452
1,393 1,287
============== ==============
The proposed final dividend for the year ended 31 December 2013
of 3.6 pence per share is subject to approval by shareholders at
the Annual General Meeting and has not been included as a liability
in these financial statements. The total amount proposed is
GBP979,636.
7 Cash generated from operations
Year ended Year ended
31 31
December 2013 December 2012
GBP000 GBP000
Profit for the period before tax 2,817 2,502
Adjustments for:
- depreciation) 583 679
- loss on disposal of property, plant
and equipment 8 87
- amortisation and impairment of intangibles 1,500 2,075
- write back of deferred consideration (25) -
- net interest 83 211
- share based payments 8 24
Changes in working capital (excluding
the effects of acquisitions):
- inventories (55) (123)
- trade and other receivables (1,766) 1,477
- trade and other payables (2,517) 1,730
Cash generated from operations 636 8,662
============== ==============
8 Acquisitions
No acquisitions were made in 2013. In 2012, GBP300,000 was
expended on the acquisition of the entire issued share capital of
TreatMe.Net Limited. GBP641,000 was in respect of goodwill. The net
cash outflow on this acquisition was GBP244,000, being GBP300,000
consideration settled in cash less GBP56,000 cash acquired. In 2013
GBP309,000 (2012 - GBP308,000) was expended in cash in respect of
contingent consideration relating to the 2011 acquisition of
Allsave Limited and My Family Care Vouchers Limited.
9 Share Capital
On 15 April 2013 the Company purchased 3,010,181 of its own
shares at a price per share of 110 pence for a total cost of
GBP3,311,000 by means of a Tender Offer to all shareholders.
Additionally, costs of GBP53,000 were incurred. The shares were
immediately cancelled on 15 April 2013 and GBP15,051 transferred
from share capital to capital redemption reserve.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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