TIDMPEN
RNS Number : 3019Q
Pennant International Group PLC
11 September 2017
11th September 2017
Pennant International Group plc
Interim Results for the six months ended 30 June 2017
"Profitable first six months of 2017; deliveries on major
overseas contracts; delay on one contract but with potential upside
in 2018; strong order book and encouraging pipeline for 2018 to
2020 and beyond."
This announcement contains information which, prior to its
disclosure by this announcement, was inside information for the
purposes of the Market Abuse Regulation
Pennant International Group plc ("Pennant" or the "Group"), the
AIM quoted supplier of integrated training and support solutions,
products and services, principally to the defence, rail, aerospace
and naval sectors and to Government Departments, announces its
interim results for the six months ended 30 June 2017 (the "Half
Year" or the "Period").
Commenting on the results, Chairman Simon Moore said:
"The Group recorded a pre-tax profit for the six months ended 30
June 2017 and as highlighted in the Trading Update announced in
July, the Half Year saw valuable contract extensions with key
customers, Lockheed Martin and the Canadian Department of National
Defence, as well as the continued performance of major contracts
secured during 2016.
The performance for the Half Year has been achieved during what
has been a transitional period for the Group, with the appointment
of Phil Walker as CEO and the commencement of significant
investment in people, products and infrastructure."
Key points: Financial
-- Group revenues for the Period of GBP9.6 million (H1 2016: GBP6.6 million);
-- profit before tax of GBP935,353 (H1 2016: GBP10,582);
-- profit for the Period attributable to shareholders of GBP935,353 (H1 2016: GBP10,582);
-- gross profit margin of 38% (H1 2016: 36%);
-- cash used in operations of GBP2.3 million (H1 2016: cash
generated from operations of GBP1.2 million);
-- trade and other receivables of GBP10.7 million (H1 2016:
GBP5.2 million), including GBP7.3 million due from contracts (H1
2016: GBP2.6 million);
-- nil borrowings;
-- net cash at Period end of GBP1.1 million (H1 2016: GBP2.6 million);
-- basic earnings per share of 2.84p (H1 2016: 0.04p per share);
-- no interim dividend declared (H1 2016: nil);
-- order book of GBP42 million (H1 2016: GBP46 million)
including GBP35 million (H1 2016: GBP36 million) currently
scheduled for delivery in the next three calendar years (2018, 2019
and 2020);
-- effective nil tax rate; unrelieved tax losses of GBP2.5m (H1 2016: GBP4.7m);
-- minimal impact of Brexit on Group, other than short term currency fluctuations.
Key points: Operational
-- Ongoing production and initial delivery of training aids in
fulfilment of a second phase contract with undisclosed Middle
Eastern customer worth in excess of GBP7 million;
-- ongoing production of training aids for delivery in second
half of 2017 in accordance with a contract with another undisclosed
Middle Eastern customer worth GBP6 million;
-- performance of the Group's contract with a prime contractor
for electro-mechanical trainers and courseware (the "UK Contract")
affected by the rescoping of the contract led by the prime
contractor;
-- on-track progression of contract with Lockheed Martin to
provide Rotary Wing Rear Crew Winch Trainer in support of Rear Crew
Training for the United Kingdom Military Flight Training System for
delivery in 2017;
-- amendment to the Group's contract with the Canadian
Department of National Defence, adding C$3.8 million to the
contract value for the remaining term to September 2018;
-- an Omega PS software sale to Fleetway;
-- a new contract with Kawasaki Heavy Industries in Japan in
relation to the Thomson-East Coast Line (Singapore's new mass rapid
transport rail project);
-- a contract amendment for Network Rail's Electrical Control Room software simulator;
-- multiple sales of Genskills Trainers to new customers in Abu
Dhabi, China, Russia and Singapore;
-- successful transition of Phil Walker into the role of CEO and
establishment of a leadership team, with key appointments made;
-- major investments made in facilities, infrastructure, people,
products and significant bid activity with further expenditure
committed.
Commenting on the Group's prospects for the year as a whole,
Simon Moore added:
"Following the successful Half Year, good progress continues to
be made on major contracts. However, due to a prime contractor-led
rescoping of the UK Contract, the Board anticipates that revenues
for the year will be below current market expectations.
This is a timing issue since overall contracted revenues on the
UK Contract are unchanged (and may increase, depending on the
revised scope) and future years' performance should benefit from
any delayed revenues.
The Group is actively progressing several opportunities,
including the negotiation of final accounts, which the Board
considers have a reasonable prospect of mitigating the effect on
profit of the reduced UK Contract revenues for 2017.
The Board is therefore confident that the Group's profit will be
broadly in line with current market expectations for the year
ending 31 December 2017.
Prospects for next year and beyond remain positive and the
Group's future contracted order book of GBP42 million provides good
long-term visibility of revenues, with contracted revenues
currently scheduled for delivery over the next three calendar years
which total GBP35 million."
Enquiries:
Pennant International www.pennantplc.co.uk
Group plc
Philip Walker, CEO
David Clements, Company +44 (0) 1452 714 881
Secretary +44 (0) 1452 714 914
WH Ireland Limited www.whirelandplc.com
Mike Coe / Ed Allsopp +44 (0) 117 945 3470
Walbrook PR (Financial paul.vann@walbrookpr.com
PR)
Paul Vann / Tom Cooper +44 (0)20 7933 8780
Mob: +44 (0)7768 807631
Pennant International Group plc
Interim Report for the six months ended 30 June 2017
Chairman's Statement
On behalf of the Board of Directors, I can report that the Group
recorded a pre-tax profit for the six months ended 30 June 2017
(GBP935,353), an outcome which exceeds the equivalent period for
2016 (GBP10,582).
The Group's financial performance for the Half Year, and to the
date of this announcement, is in line with market expectations for
the full year.
The Group has experienced challenges in performing the UK
Contract, and further detail is provided in the 'Operational
Commentary' below.
This performance for the Half Year has been achieved during what
has been a transitional period for the Group, with the appointment
of Phil Walker as CEO and the commencement of significant
investment in people, products and infrastructure.
Results and dividend
Revenues for the Period increased 45.5% to GBP9.6 million (H1
2016: GBP6.6 million), driven by the ongoing performance of major
contacts secured during 2016.
The Group was profitable for the Half Year, recording a profit
after tax of GBP935,353 (H1 2016: GBP10,582).
The gross profit margin for the Period also improved to 37.9%
(H1 2016: 36.3%) as a result of the sales mix, in particular
increased revenue from the sale of training aids.
Administrative costs for the Period were GBP2.7 million (H1
2016: GBP2.4 million). This increase is attributable to
inflationary employee pay rises; costs associated with the
cessation of the former CEO's employment; together with
higher-than-budgeted costs incurred in progressing contract bids
(reflective of the Group's pipeline of substantial
opportunities).
Basic earnings per share for the Half Year improved
significantly to 2.84p compared to 0.04p for the same period last
year.
Cash used in operations amounted to GBP(2.3) million (H1 2016:
GBP1.2 million cash generated in operations), reflecting the fact
that the Group is engaged in significant production in order to
deliver key contracts. Despite ongoing cash usage, the Group
maintains nil borrowings and had cash reserves at the end of the
Period of GBP1.1 million (H1 2016: GBP2.6 million).
An effective nil tax rate is expected for the full year with
unrelieved tax losses of GBP2.5 million carried forward at Half
Year.
The Group's order book at Half Year stood at GBP42 million (H1
2016: GBP46 million) with contracted revenues currently scheduled
for delivery over the next three calendar years amounting to GBP35
million (comprising GBP15 million for 2018, GBP11 million for 2019
and GBP9 million for 2020).
The Directors have concluded that it is in the best interests of
the Company and its shareholders to retain cash at this time for
working capital and investment. The Board will therefore not be
declaring an interim dividend.
Operational Commentary
Delivering Contracts
Middle East
The Period saw the Group engaged in, and making significant
progress on, the production of various training aids to fulfil
contracts with two key customers based in the Middle East (one
contract (which is in its second phase) being worth in excess of
GBP7 million and the other GBP6 million) (the "Middle East
Contracts"). The equipment being supplied under the Middle East
Contracts includes part task trainers and mechanical and avionics
systems for practising maintenance activities.
Factory Acceptance testing and Quality Assurance testing was
completed for certain of the manufactured items during the Half
Year, with initial delivery and Site Acceptance commencing during
June 2017 (all invoices raised by Pennant on the Middle East
Contracts during the Half Year have been settled in full).
UK Contract
The UK Contract was awarded to the Group and announced in
September 2015.
Following the Half Year, the prime contractor confirmed to
Pennant that it wished to change the scope of the contract and has
acknowledged the impact of these delays on Pennant's scheduled
delivery.
Pennant and the prime contractor continue to work together to
finalise requirements, revised schedule and commercial impact with
a view to enabling re-commencement of the contract as soon as
possible. Pennant now considers that meaningful resumption of work
on the UK Contract is unlikely before the end of 2017.
The relationship between the parties remains strong, with each
committed to delivering the project under the UK Contract, which
the Group expects to be fully delivered, with the balance of
contractual revenue (anticipated to be not less than GBP5 million)
realised, during 2018 and 2019.
Securing Contracts
During the Half Year, the Group secured a number of new
contracts and agreed valuable amendments to existing contracts.
Prior to the Period, the Group had contracted to provide
computer based training to Lockheed Martin in relation to the
Chinook Mk 6 programme and during the Half Year, Lockheed Martin
exercised an option within that contract to purchase additional
emulation software from Pennant for delivery in early 2019. This
amendment increases the contract value by GBP2 million.
The Group also sold Genskills Trainers to new customers in Abu
Dhabi, China, Russia and Singapore.
Elsewhere within the Training Systems division, the Group
continued to progress delivery of its contract with Lockheed Martin
to provide a Rotary Wing Rear Crew Winch Trainer in support of Rear
Crew Training for the United Kingdom Military Flight Training
System.
The Group's Software Services division (home to the Omega PS
software suite) agreed an amendment to the Group's existing
contract for software consultancy services with the Canadian
Department of National Defence, adding C$3.8 million to the
contract value for the remaining term to September 2018. The sale
of an Omega PS software package to Fleetway was also concluded.
In the rail sector, the Group entered into a new contract with
Kawasaki Heavy Industries in Japan for training courseware in
respect of the Thomson-East Coast Line (the new mass rapid
transport rail project in Singapore) and agreed a contract
amendment with Network Rail to deliver additional functionality for
the Electrical Control Room software simulator previously developed
by Pennant.
Management Changes and Investment in People
During the Half Year, Phil Walker was appointed as CEO
(effective 1 March 2017). Mr Walker had been a Director and Group
CFO since November 2014.
Mr Walker and the Board have implemented changes to the Group's
management structure to improve effectiveness and good governance.
These changes include the formation of a Management Committee which
meets monthly with the remit to review and discuss operational
matters and to support the CEO in the day to day running of the
Group's business.
The Period saw the Group make a number of key appointments,
including David Clements as Company Secretary and Gary Barnes as
Head of Finance (reporting direct to the Board on monthly
management accounts).
These appointments will, respectively, strengthen: the Group's
commercial, risk and compliance framework; financial function;
training delivery, product development and user insight; and
procurement process and supplier management, and underline the
Group's commitment to investing in people.
Investment in Products
During the Period, the Board and Management Committee focused on
targeted product development and the Group commenced work on a new
suite of virtual reality training products, including an upgraded
virtual parachute training system for which there is significant
customer interest. Similarly, preliminary work has been undertaken
with a potential joint-venture partner in the United States in
respect of collaboration on virtual reality products aimed at the
US Military. Further opportunities for product development were
also identified during the Period (and commenced in H2 2017).
Investment in Facilities
The Group took possession of two additional new commercial
premises adjacent to its existing facilities, doubling the Group's
overall production capacity and allowing for future growth.
Group Re-structuring
The beginning of the Half Year saw the consolidation of the
Group's Support business with its Development business as part of
the restructuring and strengthening of the Group into three
divisions: Software Services; Support and Development; and Training
Systems. The consolidation of the Support and Development
businesses into Pennant Support and Development Services Limited
has brought together into one operating unit the contract support
functions previously spread across the Group and the benefits of
these two teams working closely together are already being
realised.
Post Period End
Continued Investment
In July 2017, the Board committed to spending an additional
GBP500,000 on the Group's facilities during the second half of 2017
("H2 2017"). This expenditure will predominantly comprise building
works at the Group's new Pennant Connection site to create office
space to house its software development team and the installation
of a high-speed fibre optic link between Pennant Connection and the
head office site.
In August 2017, the Group had an offer accepted on a plot of
land adjoining the Pennant Connection site, which will provide room
for future expansion, together with improved access to and control
of the overall site.
Furthermore, in July 2017, the decision was taken to initiate
development of two new generic training products to address gaps
identified in the market; these are relevant to an ongoing contract
bid involving the Group and will also form standalone products in
their own right. These projects accord with the Group's strategy of
increasing the proportion of its sales which derive from generic
training products.
Contract Awards and Amendments
The Group is pleased to announce that the following long-term
contracts for services have been agreed since the end of the Half
Year:
The Group's contract for logistical support at RNAS Yeovilton
has been renewed for a further five years, with gross contract
revenues anticipated to be in the region of GBP1.25 million over
the life of the contract.
An amendment and extension to the Group's existing contract with
BAE Systems Australia for the maintenance of training equipment at
the Defence Aeroskills Training Academy at Wagga Wagga (the
"Academy", the "DATA Contract") has been agreed. The DATA Contract
came into effect in 2013 with an initial five-year term to 2018 and
has previously been extended to cover 2019.
The life of the DATA Contract is to be extended by two years to
cover 2020 and 2021, with the scope of services available from
Pennant to be increased to include the update and refurbishment of
training equipment. This amendment will initially add AUD 3.5
million (c. GBP2.17 million) to contracted revenues, with a further
budget agreed for the additional services.
Furthermore, with effect from September 2017, and in response to
a request raised under the DATA Contract, Pennant is supplying up
to eight training instructors to the Academy for a 12 month period,
representing a new line of services under the DATA Contract within
existing budgets.
The Software Services division also concluded sales of Omega PS
to Stadler Rail and Damen Shipyards Group following the end of the
Half Year.
Outlook
Following the successful Half Year, good progress continues to
be made on major contracts. However, due to a prime contractor-led
rescoping of the UK Contract, the Board anticipates that revenues
for the year will be below current market expectations.
This is a timing issue since overall contracted revenues on the
UK Contract are unchanged (and may increase, depending on the
revised scope) and future years' performance should benefit from
any delayed revenues.
The Group is actively progressing several opportunities,
including the negotiation of final accounts, which the Board
considers have a reasonable prospect of mitigating the effect on
profit of the reduced UK Contract revenues for 2017.
The Board is therefore confident that the Group's profit will be
broadly in line with current market expectations for the year
ending 31 December 2017.
Prospects for next year and beyond remain positive and the
Group's future contracted order book of GBP42 million provides good
long-term visibility of revenues, with contracted revenues
currently scheduled for delivery over the next three calendar years
which total GBP35 million.
With bids for significant new contracts in progress, the Board
is confident about the Group's prospects for increasing revenues
through organic growth and is actively exploring complementary
strategic acquisitions and joint-ventures with a view to expanding
the breadth and depth of the Group's offering of products and
services, and to enhance underlying revenues.
Finally, the Board and I would like to thank all staff across
the Group for their hard work and dedication during the Period and,
with various exciting initiatives ongoing, I look forward to
updating the market on the Group's progress in due course.
S A Moore
Chairman
Pennant International Group plc
Interim Report for the six months ended 30 June 2017
PENNANT INTERNATIONAL GROUP plc
CONSOLIDATED INCOME STATEMENT for the six months ended 30 June
2017
Notes Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
------------------ ------ ------------ ------------ -------------
Unaudited Unaudited Audited
------------------ ------ ------------ ------------ -------------
GBP GBP GBP
------------------ ------ ------------ ------------ -------------
Revenue 9,642,978 6,648,634 17,211,455
------------------ ------ ------------ ------------ -------------
Cost of sales (5,990,533) (4,235,697) (10,249,472)
------------------ ------ ------------ ------------ -------------
Gross profit 3,652,445 2,412,937 6,961,983
------------------ ------ ------------ ------------ -------------
Administrative
expenses (2,719,886) (2,402,778) (5,057,374)
------------------ ------ ------------ ------------ -------------
Operating profit 932,559 10,159 1,904,609
------------------ ------ ------------ ------------ -------------
Finance costs (814) (387) (9,051)
------------------ ------ ------------ ------------ -------------
Finance income 3,608 810 7,781
------------------ ------ ------------ ------------ -------------
Profit before
taxation 935,353 10,582 1,903,339
------------------ ------ ------------ ------------ -------------
Taxation 2 - - 17,691
------------------ ------ ------------ ------------ -------------
Profit for the
period 935,353 10,582 1,921,030
------------------ ------ ------------ ------------ -------------
Earnings per
share 3
------------------ ------ ------------ ------------ -------------
Basic 2.84p 0.04p 6.48p
------------------ ------ ------------ ------------ -------------
Diluted 2.68p 0.04p 6.06p
------------------ ------ ------------ ------------ -------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2017
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
------------------------ ----------- ----------- -------------
Unaudited Unaudited Audited
------------------------ ----------- ----------- -------------
GBP GBP GBP
------------------------ ----------- ----------- -------------
Profit attributable
to equity holders
of the parent 935,353 10,582 1,921,030
------------------------- ----------- ----------- -------------
Other comprehensive
income:
------------------------ ----------- ----------- -------------
Items that will
may be reclassified
to profit and
loss
------------------------ ----------- ----------- -------------
Property impairment - - (276,212)
------------------------- ----------- ----------- -------------
Deferred tax - - 46,956
------------------------- ----------- ----------- -------------
Exchange differences
on translation
of foreign operations (43,039) 308,782 413,469
------------------------- ----------- ----------- -------------
Comprehensive
income attributable
to equity holders
of the parent 892,314 319,364 2,105,243
------------------------- ----------- ----------- -------------
PENNANT INTERNATIONAL GROUP plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 June
2017
30 June 30 June 31 December
2017 2016 2016
--------------------------- ----------- ----------- ------------
Unaudited Unaudited Audited
--------------------------- ----------- ----------- ------------
GBP GBP GBP
--------------------------- ----------- ----------- ------------
Non-current assets
--------------------------- ----------- ----------- ------------
Goodwill 966,744 955,599 964,159
--------------------------- ----------- ----------- ------------
Other intangible
assets 206,509 424,597 295,780
--------------------------- ----------- ----------- ------------
Property plant and
equipment 3,036,405 2,571,221 2,642,448
--------------------------- ----------- ----------- ------------
Available-for-sale - 3,700 -
investments
--------------------------- ----------- ----------- ------------
Deferred tax asset 483,467 534,917 482,989
--------------------------- ----------- ----------- ------------
Total non-current
assets 4,693,125 4,490,034 4,385,376
--------------------------- ----------- ----------- ------------
Current assets
--------------------------- ----------- ----------- ------------
Inventories 73,417 29,854 -
--------------------------- ----------- ----------- ------------
Trade and other
receivables 10,658,049 5,156,109 7,820,128
--------------------------- ----------- ----------- ------------
Cash and cash equivalents 1,129,171 2,596,678 3,517,541
--------------------------- ----------- ----------- ------------
Assets held for
sales - - 575,000
--------------------------- ----------- ----------- ------------
Current tax asset 4,754 - -
--------------------------- ----------- ----------- ------------
Total current assets 11,865,391 7,782,641 11,912,669
--------------------------- ----------- ----------- ------------
Total assets 16,558,516 12,272,675 16,298,045
--------------------------- ----------- ----------- ------------
Current liabilities
--------------------------- ----------- ----------- ------------
Trade and other
payables 3,035,577 4,896,321 3,824,925
--------------------------- ----------- ----------- ------------
Current tax liabilities - 89,129 1,610
--------------------------- ----------- ----------- ------------
Obligations under
finance leases 4,632 7,186 4,070
--------------------------- ----------- ----------- ------------
Deferred revenue 270,339 261,582 162,500
--------------------------- ----------- ----------- ------------
Total current liabilities 3,310,548 5,254,218 3,993,105
--------------------------- ----------- ----------- ------------
Net current assets 8,554,843 2,528,423 7,919,564
--------------------------- ----------- ----------- ------------
Non current liabilities
--------------------------- ----------- ----------- ------------
Obligations under
finance leases 30,682 - 31,957
--------------------------- ----------- ----------- ------------
Deferred revenue 13,892 - 18,403
--------------------------- ----------- ----------- ------------
Deferred tax liabilities 287,625 391,857 287,625
--------------------------- ----------- ----------- ------------
Warranty provisions 150,000 - 150,000
--------------------------- ----------- ----------- ------------
Total non-current
liabilities 482,199 391,857 487,985
--------------------------- ----------- ----------- ------------
Total liabilities 3,792,747 5,646,075 4,481,090
--------------------------- ----------- ----------- ------------
Net assets 12,765,769 6,626,600 11,816,955
--------------------------- ----------- ----------- ------------
Equity
--------------------------- ----------- ----------- ------------
Share capital 1,647,177 1,402,100 1,649,277
--------------------------- ----------- ----------- ------------
Share premium 2,677,571 8,400 2,685,971
--------------------------- ----------- ----------- ------------
Capital redemption
reserve 200,000 200,000 200,000
--------------------------- ----------- ----------- ------------
Treasury shares - (418,225) -
--------------------------- ----------- ----------- ------------
Retained earnings 7,379,696 4,305,612 6,347,343
--------------------------- ----------- ----------- ------------
Translation reserve 374,028 312,380 417,067
--------------------------- ----------- ----------- ------------
Revaluation reserve 487,297 816,333 517,297
--------------------------- ----------- ----------- ------------
Total equity 12,765,769 6,626,600 11,816,955
--------------------------- ----------- ----------- ------------
PENNANT INTERNATIONAL GROUP plc
CONSOLIDATED STATEMENT OF CASH FLOWS for the six months ended 30
June 2017
Notes Six months Six months Year ended
ended ended 31 December
30 June 30 June 2016
2017 2016
--------------------------------- ------ -------------- ------------ -------------
Unaudited Unaudited Audited
--------------------------------- ------ -------------- ------------ -------------
GBP GBP GBP
--------------------------------- ------ -------------- ------------ -------------
Net cash (used in) /
generated from operating
activities 4 (2,341,178) 1,223,274 (249,248)
--------------------------------- ------ -------------- ------------ -------------
Investing activities
--------------------------------- ------ -------------- ------------ -------------
Interest received 3,608 810 7,781
--------------------------------- ------ -------------- ------------ -------------
Proceeds of sale of property - 23,621 -
plant and equipment
--------------------------------- ------ -------------- ------------ -------------
Proceeds from sale of
available-for-sale investments - - 4,314
--------------------------------- ------ -------------- ------------ -------------
Proceeds from sale of 575,000 - -
assets held-for-sale
--------------------------------- ------ -------------- ------------ -------------
Purchase of intangible
assets (62,075) (10,529) (28,438)
--------------------------------- ------ -------------- ------------ -------------
Proceeds from sale of
motor vehicles - - 12,491
--------------------------------- ------ -------------- ------------ -------------
Purchase of property
plant and equipment (503,679) (13,887) (1,086,896)
--------------------------------- ------ -------------- ------------ -------------
Net cash used in investing
activities 12,854 15 (1,090,748)
--------------------------------- ------ -------------- ------------ -------------
Financing activities
--------------------------------- ------ -------------- ------------ -------------
Proceeds from sale of
ordinary sales - - 3,342,973
--------------------------------- ------ -------------- ------------ -------------
Repurchase of B and C (10,500) - -
shares
--------------------------------- ------ -------------- ------------ -------------
Net (repayment of)/funds
from obligations under
finance leases (713) (14,999) 13,842
--------------------------------- ------ -------------- ------------ -------------
Net cash used in financing
activities (11,213) (14,999) 3,356,815
--------------------------------- ------ -------------- ------------ -------------
Net (decrease) / increase
in cash and cash equivalents (2,339,537) 1,208,290 2,016,819
--------------------------------- ------ -------------- ------------ -------------
Cash and cash equivalents
at beginning of period 3,517,541 1,123,456 1,123,456
--------------------------------- ------ -------------- ------------ -------------
Effect of foreign exchange
rates (48,833) 264,932 377,266
--------------------------------- ------ -------------- ------------ -------------
Cash and cash equivalents
at end of period 1,129,171 2,596,678 3,517,541
--------------------------------- ------ -------------- ------------ -------------
PENNANT INTERNATIONAL GROUP plc
STATEMENT OF CHANGES IN EQUITY for the six months ended 30 June
2017
Share Share Capital Treasury Retained Translation Revaluation Total
capital premium redemption shares earnings reserve reserve equity
reserve
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
GBP GBP GBP GBP GBP GBP GBP GBP
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
At 1 January
2016 1,402,100 8,400 200,000 (418,225) 4,230,206 3,598 839,157 6,265,236
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Profit for the
year - - - - 1,921,030 - - 1,921,030
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Other
comprehensive
income - - - - - 413,469 (276,212) 137,257
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Total
comprehensive
income 1,402,100 8,400 200,000 (418,225) 6,151,236 417,067 562,945 8,323,523
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Issue of
ordinary
shares 247,177 2,677,571 - 418,225 - - - 3,342,973
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Recognition
of share
based
payment - - - - 103,503 - - 103,503
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Deferred tax
on
revaluation
loss - - - - 46,956 - - 46,956
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Transfer from
revaluation
reserve - - - - 45,648 - (45,648) -
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
At 31 December
2016 1,649,277 2,685,971 200,000 - 6,347,343 417,067 517,297 11,816,955
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Profit for
period - - - - 935,353 - - 935,353
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Other
comprehensive
income - - - - - (43,039) - (43,039)
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Total
comprehensive
income 1,649,277 2,685,971 200,000 - 7,282,696 374,028 517,297 12,709,269
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Purchase of
B and C
shares (2,100) (8,400) - - - - - (10,500)
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Recognition
of share
based
payment - - - - 67,000 - - 67,000
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
Transfer from
revaluation
reserve - - - - 30,000 - (30,000) -
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
At 30 June
2017 1,647,177 2,677,571 200,000 - 7,379,696 374,028 487,297 12,765,769
--------------- ---------- ---------- ------------ ---------- ---------- ------------ ------------ -----------
PENNANT INTERNATIONAL GROUP plc
NOTES TO THE FINANCIAL INFORMATION for the six months ended 30
June 2017
1. Basis of preparation
This condensed set of financial statements has been prepared
using accounting policies expected to be adopted for the year
ending 31 December 2017. These are anticipated to be consistent
with those applied in the Group's latest annual audited financial
statements for the year ended 31 December 2016. These accounting
policies are drawn up in accordance with International Accounting
Standards and International Financial Reporting Standards as issued
by the International Accounting Standards Board and adopted by the
EU.
The comparative figures for the year ended 31 December 2016 set
out in this Interim Report are not statutory accounts. A copy of
the statutory accounts for that year has been delivered to the
Registrar of Companies. The auditors reported on those accounts;
their report was unqualified, did not draw attention to any matters
by way of emphasis and did not contain a statement under s498 (2)
or s498(3) of the Companies Act 2006.
AIM-listed companies are not required to comply with IAS34
'Interim Financial Reporting' and the Company has taken advantage
of this exemption.
2. Taxation
The taxation charge for the Period is based on the estimated
rate of tax that is likely to be effective for the full year to 31
December 2017.
3. Earnings per share
Basic earnings per share are calculated by dividing the profit
for the Period attributable to the shareholders by the weighted
average number of shares in issue. The calculation of diluted
earnings per share takes into account the potentially diluting
effect of share options.
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
------------------------- ------------- ------------- -------------
GBP GBP GBP
------------------------- ------------- ------------- -------------
Earnings
------------------------- ------------- ------------- -------------
Net profit attributable
to equity shareholders 935,353 10,582 1,921,030
------------------------- ------------- ------------- -------------
Number of shares Number Number Number
------------------------- ------------- ------------- -------------
Weighted average
number of ordinary
shares 32,943,533 26,472,261 29,647,844
------------------------- ------------- ------------- -------------
Diluting effect
of share options 2,007,619 2,077,619 2,026,786
------------------------- ------------- ------------- -------------
Weighted average
number of ordinary
shares for the purpose
of dilutive earnings
per share 34,951,152 28,549,880 31,674,630
------------------------- ------------- ------------- -------------
4. Cash generated from operations
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
---------------------------- -------------- ------------ -------------
GBP GBP GBP
---------------------------- -------------- ------------ -------------
Profit / (Loss)
for the Period 935,353 10,582 1,921,030
---------------------------- -------------- ------------ -------------
Finance income (3,608) (810) (7,781)
---------------------------- -------------- ------------ -------------
Finance costs 814 387 9,051
---------------------------- -------------- ------------ -------------
Income tax (credit)
/ expense - - (17,691)
---------------------------- -------------- ------------ -------------
Depreciation of
property, plant
and equipment 112,386 134,625 284,319
---------------------------- -------------- ------------ -------------
Amortisation of
other intangible
assets 151,323 153,048 299,801
---------------------------- -------------- ------------ -------------
Profit on disposal
of property, plant
and equipment - - 16,877
---------------------------- -------------- ------------ -------------
Profit on disposal
of available-for-sale
investments - - (614)
---------------------------- -------------- ------------ -------------
Share-based payment 67,000 42,000 103,503
---------------------------- -------------- ------------ -------------
Operating cash flows
before movement
in working capital 1,263,268 339,832 2,608,495
---------------------------- -------------- ------------ -------------
(Increase)/ decrease
in receivables (2,837,921) (1,412,674) (4,076,693)
---------------------------- -------------- ------------ -------------
(Increase) in inventories (73,417) - 29,854
---------------------------- -------------- ------------ -------------
Increase/(decrease)
in payables (789,348) 2,238,411 1,317,015
---------------------------- -------------- ------------ -------------
Increase/(decrease)
in deferred revenue 103,328 87,414 6,735
---------------------------- -------------- ------------ -------------
Cash generated from/(used
in) operations (2,334,090) 1,252,983 (114,594)
---------------------------- -------------- ------------ -------------
Tax (paid) / refund (6,274) (29,322) (125,603)
---------------------------- -------------- ------------ -------------
Interest paid (814) (387) (9,051)
---------------------------- -------------- ------------ -------------
Net cash generated
from/(used in) operations (2,341,178) 1,223,274 (249,248)
---------------------------- -------------- ------------ -------------
5. Copies of this statement
Copies of this statement will be available on the Group's
website (www.pennantplc.co.uk) and from Pennant International Group
plc, Pennant Court, Staverton Technology Park, Cheltenham, GL51
6TL.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGUWGBUPMPUU
(END) Dow Jones Newswires
September 11, 2017 02:00 ET (06:00 GMT)
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