TIDMRHL
RNS Number : 1892R
Redhall Group PLC
13 June 2018
For immediate release 13 June 2018
Redhall Group plc
("Redhall" or the "Group")
Interim Results
Redhall Group plc (AIM: RHL), the high integrity manufacturing
and services group, announces its results for the six months ended
31 March 2018.
Highlights:
-- Order book grown strongly to GBP37 million (December 2017:
GBP32 million), excluding an GBP18 million framework agreement won
by Jordan Manufacturing for Sellafield
-- Major contract awards in nuclear new build for Hinkley Point C, announced in March 2018
-- First half financial performance impacted by the timing of
contract awards and programme delays
-- Group turnover GBP14.7 million (H1 2017: GBP19 million, which
includes three months of the former marine contract)
-- Adjusted operating loss of GBP1.9 million (H1 2017: profit of GBP0.2 million)
- Adjusted operating loss of GBP0.8 million before deduction of
central costs of GBP1.1 million (H1 2017: profit of GBP0.2
million)
-- The Board anticipates that the full year performance will be in line with expectations
-- Operating exceptional costs of GBP0.5 million - site closure
and restructuring (H1 2017: nil)
-- Net debt of GBP4.5 million as at 31 March 2018 (30 September 2017: net cash GBP0.1 million)
-- Business transformation strategy underway to improve
efficiency, productivity and competitiveness
-- Tender pipeline remains strong and includes large long-term frameworks
Martyn Everett, Chairman of Redhall, commented:
"Our order book and pipeline provide us with confidence for the
Group's future as a leading player in our core nuclear defence,
decommissioning and new build markets. We also see strong demand
for our food process manufacturing and installation and mobile
networks businesses. We remain focused on winning work in these
sectors, and in other key infrastructure markets, with the
objective of returning Redhall to meaningful levels of
profitability."
Contact details:
Redhall Group plc Tel: +44 (0) 1924 385 386
Wayne Pearson, Chief Executive Officer
Chris Kelly, Group Finance Director
Buchanan
Mark Court, Sophie Wills, Gemma Mostyn-Owen Tel: +44 (0) 20 7466 5000
GCA Altium, NOMAD and Financial Advisors
Tim Richardson, Simon Lord Tel: +44 (0) 20 7484 4040
WH Ireland, Broker
Adrian Hadden, Ed Allsopp Tel: +44 (0) 20 7220 1666
Chairman's Statement
Introduction
The Group has been successful in the first half of this
financial year in securing two major programmes, demonstrating the
magnitude of the manufacturing opportunity in the UK's growing
nuclear sector and the Group's ability to win such contracts. In
December 2017 we announced that Jordan Manufacturing had secured
GBP18 million of work under a framework with Cavendish Nuclear to
manufacture containment systems and associated process equipment;
and in March 2018 we announced that Balfour Beatty had placed three
large contracts for specialist manufactured metal products for the
marine works at Hinkley Point C.
Our businesses continue to see significant tender activity in
major UK infrastructure projects and there is a very healthy
pipeline of opportunities available to the Group. As at 12 June
2018, the order book stands at GBP37 million (excluding Jordan
Manufacturing's GBP18 million framework award) compared with GBP32
million at 5 December 2017.
As previously announced in March 2018 the financial performance
of the Group in the first half was impacted by delays in the timing
of the Hinkley Point C awards and by progress on other contracts.
This resulted in lower turnover, and as a consequence of which the
Group incurred a loss in the first half. The Board is encouraged by
the momentum in the Group's order book and the continued growth of
a high quality pipeline of opportunities, which underpins our
confidence in the future.
Trading Results
Revenue for the six months period amounted to GBP14.7 million
(H1 2017: GBP19.0 million). Adjusted operating loss before
interest, tax, amortisation, IFRS 2 credit and exceptional items
amounted to GBP1.9 million (H1 2017: profit of GBP0.2 million).
There were GBP0.5 million of exceptional costs in the period as we
closed our Jex Grimsby site at a cost of GBP0.3 million and
incurred other redundancy costs across the Group of GBP0.2 million.
The adjusted fully diluted loss per share from the continuing
businesses amounted to GBP0.52p (H1 2017: loss of 0.10p).
More detail on the trading performance is provided in the Chief
Executive Officer's review.
Financial Position
During the first half, we made further investment in our people
to provide the skills and capacity to grow the business and
capitalise on the opportunities that we consider are available in
our markets. This has increased overheads in the period. We also
continued to invest in process improvements, which we expect to
benefit from in the second half.
Net debt (excluding finance leases of GBP0.3 million (2017:
GBP0.4 million)) at the end of the period was
GBP4.2 million (30 September 2017: net cash GBP0.5 million). The
Company's GBP8.0 million facilities with HSBC, consist of a GBP5.5
million revolving credit facility and overdraft plus a GBP2.5
million accordion facility. The Lombard Odier Investment Management
facility of GBP1.7 million is fully drawn. All of the Group's loans
are repayable in July 2021.
In the first half our working capital requirements were higher
than anticipated due, in part, to delays in the agreement of final
accounts and the requirement to carry higher work in progress on
certain key contracts.
As at 31 March 2018, our defined benefit pension deficit was
GBP0.4 million (30 September 2017: GBP0.5 million).
Dividend
The Board is not recommending an interim dividend for the
current year.
People
Wayne Pearson succeeded Phil Brierley as Chief Executive on 1
April 2018 and, as announced on 23 April 2018, Simon Comer will
take over from Chris Kelly as Finance Director on 2 July 2018. The
Board would like to thank Phil and Chris for their part in the
successful restructuring of the Group. In addition, we have
welcomed Joe Oatley to the Board as a non-executive director and
Phillip Hilling leaves the Board on 30 June 2018 after seven years
as a non-executive director.
Our employees continue to support the delivery of our strategic
plans and the Board is extremely grateful for their commitment. We
seek to provide high levels of quality and health and safety in our
businesses and the investments we have made in these areas are
benefiting our entire workforce.
Prospects
Our order book and pipeline provide us with confidence for the
Group's future as a leading player in our core nuclear defence,
decommissioning and new build markets. We also see strong demand
for our food process manufacturing and installation and mobile
networks businesses. We remain focused on winning work in these
sectors, and in other key infrastructure markets, with the
objective of returning Redhall to meaningful levels of
profitability.
Martyn Everett
Chairman
13 June 2018
Chief Executive Officer's Review
Overview
After eight months as Redhall's Chief Operating Officer, I was
very pleased in April this year to become Chief Executive Officer,
to drive forward our business transformation strategy to establish
a foundation for sustained growth. Following the completion last
year of the corporate restructuring phase of our strategic
transformation, our focus is now on driving operational excellence
throughout the Group. We are already making improvements across a
number of areas of our business; however, there is much work to be
done and I expect this to be the key focus for the business in the
near term. We expect to deliver long term growth through strong
market demand and gaining market share as our focus on operational
excellence delivers a more efficient business with a more
competitive cost base.
Whilst the first half financial performance was disappointing,
we anticipate a significant improvement in the second half of the
current financial year driven by increased volume and improved
margins as we start to enjoy the benefits of our business
transformation efforts.
Our strategy continues to be to deliver high integrity
manufactured products and services into complex, secure and
hazardous environments. We are currently working on a number of the
largest and most complex infrastructure projects in the UK,
reflecting the quality of our products and services. It was
particularly pleasing in the first half that Jordan Manufacturing
secured three major marine works packages for Hinkley Point C.
The Group's order book as at 12 June, stands at GBP37 million (5
December 2017: GBP32 million), excluding the GBP18 million
framework agreement with Cavendish Nuclear. This growth has been
driven predominantly by customer orders to manufacture goods for
the nuclear market. This is particularly pleasing as products for
the nuclear market tend to be highly engineered and therefore have
higher value added content. Behind this order book is a substantial
pipeline of projects for which we have already submitted bids.
In many of our core markets we are seeing an increasing number
of opportunities, which potentially offer substantial growth for
Redhall in the medium and long term.
A further five nuclear power stations have been proposed for the
UK which, if built, will provide sustained opportunities in this
sector. The decommissioning market is dominated by Sellafield, in
addition to which we are tendering for work at the Dounreay and
Magnox sites, where we currently have framework agreements in
place.
The Successor submarine programme with its associated defence
spending, the growing requirement for high integrity doors to
combat the security threat to key infrastructure and the ongoing
spend in large rail infrastructure projects such as Crossrail,
along with other rail projects such as the Northern Line Extension,
all provide opportunities for and confidence in the future. We are
also seeing some renewed tender activity in the oil and gas markets
as the oil price recovers.
Health & Safety
The health and safety of our employees and those who may be
affected by our businesses remains our highest priority. All of our
subsidiaries have accredited management systems to control health
and safety risks to OHSAS 18001 and environmental management
systems certified to BS EN ISO 14001.
I am pleased that we have delivered an improved safety
performance in the first half and we expect that this year on year
improvement in health and safety performance will continue as we
move forward with our operational excellence journey and maintain
our daily focus and awareness campaign.
All Group businesses currently hold the RoSPA (Royal Society for
the Prevention of Accidents) Gold award, which recognises high or
very high levels of performance in health and safety.
Trading
The Group made an adjusted operating loss for the first half of
GBP1.9 million (H1 2017: GBP0.2 million profit) on revenue of
GBP14.7 million (H1 2017: GBP19.0 million). Before deducting Group
and central services costs, the adjusted operating loss was GBP0.8
million (H1 2017: GBP1.2 million profit).
The disappointing financial performance in the first half of the
year was largely driven by the timing of the award of the Hinkley
Point C contracts at Jordan Manufacturing, delays to other key
contracts and lower than expected margins in Booth Industries due
to operational inefficiencies. This highlights the need to focus on
operational improvement to both improve efficiency and maximise
manufacturing output. Key improvement areas have been identified
and an improvement plan is now being worked on aggressively. It is
pleasing to note that our lenders remain supportive of the Group
and in light of losses in the first half of the financial year have
agreed revised covenant arrangements in line with our forecasts and
projections.
Operational Excellence
Having completed the corporate restructuring in the previous
financial year, we are now in the second phase of our business
transformation, focusing on driving operational excellence across
the Group to achieve a significant improvement in operational
performance.
Significant progress has been made to date, automating the 3D
CAD design and the tendering of our core products. Within
manufacturing we have started our Lean journey by establishing 5S
principles, implementing shop floor vendor managed Kanban and
developing a shop floor data collection system. Establishing a
"design for manufacture" process has been key to closing the
communication gap between engineering and the shop floor and will
provide the platform that will drive cost out of our product and
waste from the shop floor.
In the near term we will focus on reducing complexity within our
products and processes and introducing levels of automation where
appropriate, segmenting our businesses into clearly differentiated
value streams, which will allow us to better control our costs and
manufacturing volumes. We will ensure that we have the right people
in the right place, by developing our own people through the
Redhall Academy and by hiring the best talent available.
Booth Industries
Booth Industries has been focused on the delivery of its order
book and on sales and marketing efforts to drive future scale. The
key project work has been on nuclear defence projects in the UK and
France, on Crossrail and other infrastructure projects. Volume has
been negatively impacted by orders moving through the business
slower than anticipated due to detailed customer reviews and
approvals at key points, which have extended the work programmes.
In addition, as outlined above, there is opportunity to deliver
significant operational efficiency improvements both within
engineering and manufacturing. Consequently, the progression of
work from engineering to production and installation has been
unnecessarily complex and we are working on both improving our
internal processes and also with clients to address this.
Jordan Manufacturing
The award of the Hinkley Point C works for Jordan Manufacturing
was a major highlight of the first half. Jordan Manufacturing is
now working with EDF and Balfour Beatty on the execution of these
works and we expect a significant volume of work will be executed
on this contract during the second half of the current financial
year. Whilst certain other contract awards in the period were also
delayed, we are now seeing clients looking to release work
requirements for FY2019 and beyond.
Redhall Jex
Redhall Jex provides design, manufacture, installation,
relocation and refurbishment of process equipment, principally into
the food sectors. We have seen good volumes from a number of our
major clients, which include Kellogg's, Mondelez, Mars and Nestlé,
and projects in the half year included the completion of a GBP4
million relocation project and further work on the completion and
installation of a rubber micronisation plant. We anticipate that
volumes have the potential to improve further as we broaden our
customer base and customer projects move toward order
placement.
Redhall Networks
Redhall Networks provides cellular rigging installations to the
mobile telecommunications network across England and Scotland. The
first quarter was very strong, although we experienced a short-term
slowdown in the levels of work in the second quarter which has
continued into the second half. Nonetheless, with mobile
communications an ever-increasing part of our national
infrastructure, we are confident that the maintenance, upgrading
and consolidation of the network by the operators will provide us
with a return to strong volumes and growing profitability.
Outlook
The Board anticipates that the full year performance will be in
line with expectations, with strong trading in the second half, in
particular in the last quarter, driven by both increased volumes
and
improvement in margin as we start to see some of the benefits of
our operational excellence programme. Nonetheless, the Group's
performance remains sensitive to customer and project delays, much
of which are outside our control.
We are confident that the momentum in our order book and the
improvements already underway within our business transformation
strategy will deliver profitable growth in the Group and create
long term value for shareholders.
Wayne Pearson
Chief Executive Officer 13 June 2018
Condensed Consolidated Interim Income Statement
Six months Six months Year to
to 31 March to 31 March 30 September
Note 2018 2017 2017
GBP000 GBP000 GBP000
Revenue 3 14,744 18,964 38,905
Cost of sales (12,137) (14,546) (29,309)
=================================== ====== ================ ================= ================
Gross profit 2,607 4,418 9,596
Administrative expenses (5,129) (4,598) (9,924)
=================================== ====== ================ ================= ================
Loss before interest and
tax 3 (2,522) (180) (328)
=================================== ====== ================ ================= ================
Continuing businesses (806) 1,228 3,632
Central costs (1,119) (1,045) (2,202)
=================================== ====== ================ ================= ================
Adjusted operating (loss)/profit* (1,925) 183 1,430
=================================== ====== ================ ================= ================
Exceptional items (521) - (1,084)
Amortisation of acquired
intangible assets (135) (153) (287)
IFRS 2 credit/(charge) 59 (210) (387)
Operating loss (2,522) (180) (328)
=================================== ====== ================ ================= ================
Net financial expense (209) (439) (857)
Loss before tax on continuing
operations (2,731) (619) (1,185)
Tax credit/(charge) on
loss on ordinary activities 5 294 (93) 81
Loss on continuing operations (2,437) (712) (1,104)
Loss on discontinued operations
net of tax 10 - (72) (265)
=================================== ====== ================ ================= ================
Loss attributable to equity
holders of the
Parent Company (2,437) (784) (1,369)
=================================== ====== ================ ================= ================
Loss per share 6
Basic (0.73)p (0.39)p (0.59)p
Diluted (0.73)p (0.39)p (0.59)p
* Before exceptional items, amortisation of intangible assets
acquired with business combinations and IFRS 2 (credit)/charge.
Condensed Consolidated Interim Statement of Comprehensive
Income
Six months Six months Year to
to 31 to 31 March 30 September
March
Note 2018 2017 2017
GBP000 GBP000 GBP000
Loss for the period (2,437) (784) (1,369)
Other comprehensive income:
Items that will not be reclassified
to profit or loss:
Remeasurement of defined benefit
liability - 1,982 3,234
Tax on actuarial gain - (332) (566)
==================================== ============== =========== ============
Other comprehensive income
for the
==============
period net of tax - 1,650 2,668
==================================== ============== =========== ============
Total comprehensive income
attributable to
==============
equity holders of the Parent
Company (2,437) 866 1,299
==================================== ============== =========== ============
Condensed Consolidated Interim Balance Sheet
As at As at As at
31 March 31 March 30 September
2018 2017 2017
Note GBP000 GBP000 GBP000
Assets
Non-current assets
Property, plant and
equipment 2,304 3,000 2,488
Intangible assets 2,831 2,704 2,569
Purchased goodwill 18,305 18,305 18,305
Deferred tax asset 1,315 607 1,021
=============================== ==== ======== ======== ============
Current assets 24,755 24,616 24,383
Inventories 772 582 626
Trade and other receivables
(of which GBP76,000 are
due after one year (31 March
2017: GBP322,000;
30 September 2017: GBP88,000)) 14,828 12,371 13,778
Cash and cash equivalents 8 - 350 2,370
Assets held for sale 141 - 141
=============================== ==== ======== ======== ============
Liabilities 15,741 13,303 16,915
Current liabilities
Trade and other payables (8,159) (9,930) (8,645)
Borrowings and overdraft (1,450) (92) (197)
Finance leases (72) - (69)
Current tax payable - (19) -
=============================== ==== ======== ======== ============
Non-current liabilities (9,681) (10,041) (8,911)
Borrowings 8 (2,715) (9,269) (1,715)
Finance leases (217) (293) (254)
Retirement benefit obligations 9 (380) (1,815) (450)
=============================== ==== ======== ======== ============
(3,312) (11,377) (2,419)
===================================== ======== ======== ============
Net assets 27,503 16,501 29,968
===================================== ======== ======== ============
Equity attributable
to owners of
the Parent Company
Share capital 12,297 12,284 12,297
Share premium account - 28,326 -
Merger reserve - 12,679 -
Revaluation reserve 102 102 102
Other reserve 1,662 1,499 1,690
Retained earnings 13,442 (38,389) 15,879
=============================== ==== ======== ======== ============
Total equity 27,503 16,501 29,968
===================================== ======== ======== ============
Condensed Consolidated Interim Statement of Changes in
Equity
Share Share Merger Revaluation Other Retained
capital premium reserve reserve reserve earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 October
2016 12,284 28,326 12,679 102 1,389 (39,255) 15,525
Share capital
issued
during the year
net of
Expenses 13 12,608 - - - - 12,621
Capital reduction
net of
Expenses - (40,934) (12,679) - - 53,583 (30)
Employee share-based
compensation
- current year - - - - 221 - 221
* prior year amounts realised - - - - (11) - (11)
Employee share-based
compensation
- deferred tax - - - - 343 - 343
===================================== ========== ======== ======== ============ ========== ======== ========
Transactions
with
owners 12,297 - - 102 1,942 14,328 28,669
Loss for the
year - - - - - (1,369) (1,369)
Movement between
reserves - - - - (252) 252 -
Other comprehensive
income for the
year - - - - - 2,668 2,668
===================================== ========== ======== ======== ============ ========== ======== ========
Total comprehensive
income for the
year - - - - (252) 1,551 1,299
===================================== ========== ======== ======== ============ ========== ======== ========
At 30 September
2017 12,297 - - 102 1,690 15,879 29,968
===================================== ========== ======== ======== ============ ========== ======== ========
At 1 October
2017 12,297 - - 102 1,690 15,879 29,968
Employee share-based
compensation - - - - (28) - (28)
Transactions - - - - - - -
with owners
Loss for the
period - - - - - (2,437) (2,437)
===================================== ========== ======== ======== ============ ========== ======== ========
Total comprehensive
income for the
period - - - - - (2,437) (2,437)
===================================== ========== ======== ======== ============ ========== ======== ========
At 31 March 2018 12,297 - - 102 1,662 13,442 27,503
===================================== ========== ======== ======== ============ ========== ======== ========
Condensed Consolidated Interim Cash Flow Statement
Six months Six months Year to
to 31 to 31 March 30 September
March
Note 2018 2017 2017
GBP000 GBP000 GBP000
Cash (absorbed by)/generated
from operations 7 (3,846) 87 (2,564)
Interest paid (244) (379) (807)
=============================== ==== ========== =========== ============
Net cash absorbed by operating
activities (4,090) (292) (3,371)
Cash flows from investing
activities
Purchase of property, plant
and equipment (137) (104) (883)
Purchase of intangible
assets (362) (206) (284)
Proceeds from sale of fixed
assets - - 300
=============================== ==== ========== =========== ============
Net cash (used in)/received
from investing activities (499) (310) (867)
===================================== ========== =========== ============
Cash flows from financing
activities
Proceeds from issue of
share capital (net of costs
incurred) - - 8,871
Finance lease borrowing - - 384
Proceeds from borrowings 2,253 - 197
Repayment of long term
borrowing - - (3,804)
Repayment of finance leases (34) (69) (61)
=============================== ==== ========== =========== ============
Net cash generated by financing
activities 2,219 (69) 5,587
===================================== ========== =========== ============
Net (decrease)/increase in
cash and cash equivalents (2,370) (671) 1,349
Cash and cash equivalents
at beginning of period 2,370 1,021 1,021
===================================== ========== =========== ============
Cash and cash equivalents
at end of period 8 - 350 2,370
=============================== ==== ========== =========== ============
Notes to the Condensed Consolidated Interim Financial
Statements
1. Basis of preparation
These condensed consolidated interim financial statements
("interim financial statements") are for the six months ended 31
March 2018 and do not constitute statutory accounts under sections
434 and 435 of the Companies Act 2006. They do not include all of
the information required for full annual financial statements. The
comparative figures for the financial year ended 30 September 2017
are not the Group's consolidated statutory accounts for that
financial year. Those accounts have been reported on by the Group's
auditor and delivered to the Registrar of Companies. The report of
the auditor was (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
a statement under sections 498(2) or 498(3) of the Companies Act
2006. These interim financial statements should be read in
conjunction with the consolidated financial statements of the Group
for the year ended 30 September 2017.
These interim financial statements have been prepared in
accordance with the recognition and measurement requirements of
IFRSs as adopted by the EU but not in compliance with IAS34 as
adopted by the EU, and under the historical cost convention, except
for the revaluation of certain non-current assets and to include
fair values for share-based payments and the initial recognition of
financial instruments.
These interim financial statements have been prepared in
accordance with the accounting policies adopted in the latest
consolidated financial statements for the year to 30 September
2017. The accounting policies have been applied consistently
throughout the Group for the purposes of preparation of these
interim financial statements. IFRS 15 'Revenue from Contracts with
Customers' is effective from 1 January 2018. The Group is in the
process of completing its impact assessment of this standard.
As noted in note 8, the Group entered into new banking
arrangements in July 2017. The Group's forecasts and projections,
taking account of expected trading performance, show that the Group
should be able to operate within the level of the facilities. Due
to losses incurred in the first half of this financial year, the
Company has agreed certain covenant amendments with its lenders in
line with the Group's forecasts and projections. After making
enquiries, the Directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the foreseeable future. Accordingly they have continued to
adopt the going concern basis in the preparation of these interim
financial statements.
2. Principal operating risks and uncertainties
The principal operating risks and uncertainties faced by the
Group were reported in the latest consolidated financial statements
of the Group for the year to 30 September 2017 and remain
unchanged.
3. Segment analysis
The Board of Directors, which is the Chief Operating Decision
Maker as described by IFRS 8 has concluded that the Group comprises
one segment and this is how the CODM reviews performance and
allocates resources. The Group businesses are all market leaders in
the provision of high integrity manufacturing and services
delivered into complex and hazardous environments and have similar
characteristics. The segment performance is measured in accordance
with IFRS and segment result is adjusted operating profit/loss on
the face of the income statement.
Site Services
During the second half of the year ended 30 September 2015 the
activities of Site Services were discontinued. The Group sold its
Engineering business on 13 May 2015 and on 14 May 2015 announced
the closure of its site based Nuclear contracting business. The
results of the discontinued activities are shown in note 10.
Geographical segments
The following table shows the distribution of the Group's
continuing consolidated revenue by geographical market, regardless
of the origin of the goods or services.
Six months Six months Year to
to 31 to 31 March 30 September
March
2018 2017 2017
GBP000 GBP000 GBP000
United Kingdom 13,259 16,782 34,318
Other European Union countries 1,143 904 2,794
Other overseas locations 342 1,278 1,793
=============================== ========== =========== ============
14,744 18,964 38,905
=============================== ========== =========== ============
4. Financial income and expenses
Six months Six months Year to
to 31 to 31 March 30 September
March
2018 2017 2017
GBP000 GBP000 GBP000
Financial expenses
Interest on bank loans and
overdrafts (151) (324) (632)
Interest on finance leases (13) (10) -
Net finance expense on pension
scheme* (45) (105) (225)
=============================== ============ =========== ============
(209) (439) (857)
=============================== ============ =========== ============
* Includes GBP45,000 of pension administration expenses paid for
by the Group (31 March 2017: GBP60,000;
30 September 2017: GBP135,000).
5. Taxation
The charge for taxation reflects an estimated current tax charge
on the projected results for the year and estimated movements in
the deferred tax balance.
6. Earnings per share
Basic loss per share
The calculation of basic loss per share of 0.73p (31 March 2017:
loss per share of 0.39p; 30 September 2017: loss per share of
0.59p) is based on 332,900,684 shares (31 March 2017: 200,250,684;
30 September 2017: 232,080,273), being the weighted average number
of shares in issue throughout the period and the loss of
GBP2,437,000 (31 March 2017: loss of GBP784,000; 30 September 2017:
loss of GBP1,369,000).
Diluted loss per share
The loss attributable to ordinary shareholders and weighted
average number of ordinary shares for the purpose of calculating
the diluted loss per share for the period ended 31 March 2018, 31
March 2017 and for the year ended 30 September 2017 are identical
to those used for the basic loss per share.
This is because the exercise of share options would have the
effect of reducing the loss per share and is, therefore, not a
dilution under the terms of IAS 33.
Adjusted earnings per share
The Directors believe that helpful additional earnings per share
calculations are earnings per share on adjusted bases. The basic
and adjusted weighted average numbers of shares and the adjusted
earnings have been calculated as follows:
Six months Six months Year to
==============================
to 31 March to 31 March 30 September
2018 2017 2017
Number Number Number
Basic and adjusted weighted
average number of shares 332,900,684 200,050,684 232,080,273
============================== =========== =============== ============
GBP000 GBP000 GBP000
Earnings:
Loss on ordinary activities
before tax (2,731) (691) (1,450)
Exceptional items 521 72 1,349
Amortisation of acquired
intangible assets 135 153 287
IFRS 2 (credit)/charge (59) 210 387
============================== =========== =============== ============
Adjusted (loss)/profit before
tax (2,134) (256) 573
Tax at 19.5% (31 March 2017:
19.5%;
30 September 2017: 19.5%) 416 50 (112)
============================== =========== =============== ============
Adjusted (loss)/profit after
tax (1,718) (206) 461
============================== =========== =============== ============
Adjusted fully taxed basic
earnings per share (0.52)p (0.10)p (0.20)p
============================== =========== =============== ============
Adjusted fully taxed diluted
earnings per share (0.52)p (0.10)p (0.20)p
============================== =========== =============== ============
Continuing operations Six months Six months Year to
to 31 March to 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Loss before tax (2,731) (619) (1,185)
Exceptional items 521 - 1,084
Amortisation of acquired
intangible assets 135 153 287
IFRS 2 (credit)/charge (59) 210 387
============================== ================ =============== ============
Adjusted (loss)/profit before
tax (2,134) (256) 573
Tax at 19.5% (31 March 2017:
19.5%;
30 September 2017: 19.5%) 416 50 (112)
============================== ================ =============== ============
Adjusted (loss)/profit after
tax (1,718) (206) 461
============================== ================ =============== ============
Adjusted fully taxed diluted
loss per share (0.52)p (0.10)p (0.20)p
============================== ================ =============== ============
Discontinued operations
GBP000 GBP000 GBP000
Loss before tax - (72) (265)
Exceptional items - 72 265
Amortisation of acquired - - -
intangible assets
============================== ================ =============== ============
Adjusted loss before tax - - -
Tax at 19.5% (31 March 2017:
19.5%;
30 September 2017: 19.5%) - - -
============================== ================ =============== ============
Adjusted loss after tax - - -
============================== ================ =============== ============
Adjusted fully taxed diluted
loss per share 0.00p 0.00p 0.00p
============================== ================ =============== ============
7. Cash flow from operating activities
Six months Six months Year to
to 31 to 31 March 30 September
March
2018 2017 2017
GBP000 GBP000 GBP000
Loss after taxation (2,437) (784) (1,369)
Adjustments for:
Depreciation 171 206 392
Amortisation of intangible
assets 250 233 447
Loss on disposal of property,
plant and equipment - - 210
Difference between pension
charge and
cash contributions (70) 1 (88)
Share based payments (credit)/charge (59) 110 210
Financial expenses 209 439 857
Taxation (credit)/charge recognised
in income statement (294) 93 (81)
(Increase)/decrease in trade
and other receivables (1,050) (918) (2,511)
(Increase)/decrease in inventories (146) 54 10
(Decrease)/increase in trade
and other payables (420) 653 (641)
===================================== ========== =========== ============
Cash (absorbed by)/generated
from operations (3,846) 87 (2,564)
===================================== ========== =========== ============
8. Reconciliation of net debt
A reconciliation of the cash and cash equivalents reported in
the condensed consolidated interim cash flow statement with the
total borrowings reported in the condensed consolidated interim
balance sheet as at 31 March 2018 is set out as follows:
At start Non-cash At end
of period Cash flow movement of period
GBP000 GBP000 GBP000 GBP000
Cash at bank and in hand 2,370 (2,370) - -
Bank overdraft (197) (1,253) - (1,450)
Finance leases (69) - (3) (72)
============================== ============== ========= ======== ==========
Net cash and cash equivalents
(Borrowings due within - - - -
one year)
Bank loan due after more
than one year - (1,000) - (1,000)
Other loan due after more
than one year (1,715) - - (1,715)
Finance leases (254) 34 3 (217)
============================== ============== ========= ======== ==========
135 (4,589) - (4,454)
============================== ============== ========= ======== ==========
The Group entered into new banking arrangements in July 2017.
These facilities expire in July 2021. They comprise total
facilities of GBP9,715,000, being an overdraft of GBP2,000,000, a
revolving credit facility of GBP3,525,000, and an accordion
facility of GBP2,475,000 with HSBC and a term loan of GBP1,715,000
with funds managed by LOIM.
9. Retirement benefit obligations
The liability for retirement benefit obligations relates to the
Booth Industries Group PLC Staff Pensions and Life Assurance
Scheme.
The result of the most recent formal actuarial valuation which
was carried out as at 6 April 2015 was updated to 30 September 2017
by an independent qualified actuary. The reduction in the deficit
in the period arises from deficit recovery payments.
10. Discontinued operations
Income and expenditure incurred on discontinued operations
comprises the exit from Nuclear Site Services business.
Six months Six months Year to
to 31 to 31 March 30 September
March
2018 2017 2017
GBP000 GBP000 GBP000
Revenue - 273 -
Cost of sales - (261) -
====================================== ========== =========== ============
Gross profit - 12 -
Administrative expenses - (12) -
====================================== ========== =========== ============
Adjusted operating loss before - - -
exceptionals
Exceptional items - (72) (265)
====================================== ========== =========== ============
Operating loss and loss before
taxation - (72) (265)
Taxation credit - - -
====================================== ========== =========== ============
Loss after taxation from discontinued
operations - (72) (265)
====================================== ========== =========== ============
During the period, discontinued operations contributed a net
cash inflow of GBP120,000 (31 March 2017: GBP83,000 outflow; 30
September 2017: GBPnil outflow) to the Group's operating cash flows
and there were no cash flows from investing activities or from
financing activities.
11. Dividends on equity shares
There were no dividends paid during the six month period to 31
March 2018 or the year ended 30 September 2017.
The Directors do not propose the payment of an interim dividend
for the six months ended 31 March 2018.
12. Distribution of interim report
Copies of this interim report are available from the Company
Secretary, Redhall Group plc, Unit 3, Calder Close, Wakefield, WF4
3BA and www.redhallgroup.co.uk
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR FKBDPCBKDFAD
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June 13, 2018 02:00 ET (06:00 GMT)
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