TIDMRTC
RNS Number : 0657W
RTC Group PLC
30 July 2018
30 July 2018
RTC Group Plc
("RTC", "the Company" or "the Group")
Interim Results for the Six Months Ended 30 June 2018
RTC Group Plc (AIM: RTC.L), the engineering and technical
recruitment company, is pleased to announce its unaudited results
for the six months ended 30 June 2018.
Highlights:
-- Group revenue from continuing operations increased by 17% to GBP41.1m (2017: GBP35.1m)
-- Profit before tax increased by 31% to GBP0.77m: (2017: GBP0.59m)
-- Basic earnings per share increased by 22% to 4.38p: (2017: 3.58p)
In line with the Group's progressive dividend policy, the
Directors propose an interim dividend of 1.3p per share (2017:
1.2p). The interim dividend will be paid on 30 November 2018 to
shareholders on the register on 9 November 2018.
Commenting on the results, Bill Douie, Chairman, said:
"The optimism that we expressed earlier in the year has been
justified by a highly satisfactory set of results. We remain
confident of continued strong trading, in line with expectations,
during the second half, and of delivering our ambitious growth
plans across all our Group businesses "
The interim report is available on the Company's website
www.rtcgroupplc.co.uk.
S
Enquiries:
RTC Group Plc Tel: 0133 286 1835
Bill Douie, Chairman
Andy Pendlebury, Chief Executive
SPARK Advisory Partners Limited (Nominated Tel: 0203 368 3550
Adviser)
Matt Davis / Mark Brady
www.Sparkadvisorypartners.com
Whitman Howard Limited (Broker) Tel: 020 7659 1234
Nick Lovering / Francis North
www.Whitman-howard.com
About RTC
RTC has three principal trading subsidiaries engaged in
recruitment services:
-- ATA supplies white and blue-collar engineering and technical
staff to a broad range of clients;
-- Ganymede supplies blue collar contingent labour into safety critical markets; and
-- GSS provides recruitment services for international deployment.
www.rtcgroupplc.co.uk
Chairman's statement
Six months ended 30 June 2018
Our optimism as expressed in my statement in our report and
accounts earlier this year has been justified and trading in the
first half of 2018 has been most satisfactory.
Ganymede Rail continues to perform well despite lower than
expected volumes on its Network Rail contract, and although we had
a minor exposure to Carillion, we have not suffered any net loss
arising from their failure. In the final weeks of the period,
volumes arising from the Network Rail contract returned to normal
levels.
Ganymede Energy's significant contract with Scottish and
Southern Electric Plc to source, train and provide dual fuel
installers for its Smart-Meter roll-out programme experienced
delays in growth due to Government approval of equipment standards
and will see growth return next year.
ATA Recruitment has had a good first half and is growing its
contract business ahead of expectations.
Global Staffing Solutions continues to increase its presence in
Afghanistan and is enjoying promising new client opportunities both
there and in other Middle East regions.
Long term incentives. For some years prior to 2018, very few
share options were granted to senior and top management. The
Remuneration Committee is keenly aware of the need to ensure that
key staff are suitably incentivised both in the short and
long-term. The responsibility to secure, motivate and retain top
quality talent at Group Board level falls to the Group Chairman,
assisted by the Remuneration Committee on rewards matters. The
short term is accomplished by heavily weighted Profit Related Pay
and the long-term is secured by the long-term incentives. Earlier
this year an award of LTIP options was made to Group Executive
Directors to restore an appropriate level of options to vest only
on achievement of three-year performance objectives. That process
is now complete.
We remain confident of continuing our performance in the second
half of 2018 in line with expectations and are looking forward to
delivering our ambitious growth plans across all our Group
businesses.
W J C Douie 30 July 2018
Chairman
Finance Director's statement
Six months ended 30 June 2018
Revenue and gross margin
In the period ended 30 June 2018, Group revenue increased by 17%
to GBP41.1m (2017: GBP35.1m). Profit before tax increased by 31% to
GBP0.77m (2017: GBP0.59m).
ATA
ATA's strategy of increasing its contract-based business has
proved successful with growth in contract margin of 30% on the same
period last year. This coupled with solid growth in permanent and
temporary recruitment activities and increased operating
efficiencies has improved gross profit conversion to 30% from 21%
in 2017.
GSS
GSS made an outstanding start to 2018 delivering a GBP0.5m
contribution to Group up 161% on the same period last year. This
reflects a steady increase in the number of workers supplied to
KBR, its long standing international partner and its contract with
another major US outsourcing organisation providing staff to
support international operations on large projects which started in
July 2017. Conversion of gross profit to profit from operations has
increased significantly from 40% H1 2017 to 60% H1 2018.
Ganymede
Ganymede's contribution reflects lower than expected demand from
Network Rail (demand has now picked up) and temporary delays caused
by the approval of SMET2 smart-meter technology. Also, the new
accounting standard IFRS 15 has altered the treatment of certain
costs relating to long-term contracts which impacted Ganymede's
first half result (refer note 1 (d)).
Central Services
Within Central Services revenue from the Derby site continues to
grow in line with expectations.
Taxation
The total tax charge for the period is estimated at GBP148,000
(2017: GBP93,000). This is higher than would be expected if the
standard tax rate was applied to the profits for the period, as
explained in note 3.
Earnings per share
The basic earnings per share figure is 4.38p (2017: 3.85p). The
diluted earnings per share 4.10p (2017: 3.39p).
Statement of financial position
The Group statement of financial position has further
strengthened compared to the same point last year with net working
capital increasing to GBP2.7m (2017: GBP1.8m). This increase
primarily reflects increased turnover with clients in ATA on
extended credit terms. The ratio of current assets to current
liabilities was maintained at 1.2 (2017: 1.2) and the gearing ratio
increased to 1.3 times (2017: 1.0 times). Interest cover was 13.6
times (2017: 16.9 times). The increase in absolute interest cost
reflects growth in contract business with clients on extended
credit terms.
Finance Director's statement
Six months ended 30 June 2018
Cash flow
The cash flow for the six-month period reflects temporary
payment delays due to an internal reorganisation at a major
customer in Ganymede that have since been resolved and increased
business with a major customer in ATA on extended credit terms.
Financing
The Group's current bank facilities include an overdraft of
GBP50,000 and a confidential invoice discounting facility of up to
GBP9.0m with HSBC which has been renewed for a further two-year
period at a reduced discount margin of 1.5% above base (previously
1.65% above base). An increase in facility up to GBP11m has also
been approved by HSBC but not yet invoked as the Group is operating
within its current facility cap. The Board closely monitors the
level of facility utilisation and availability to ensure that there
is sufficient headroom to manage current operations and support the
growth of the business. The Group continues to be focussed on cash
generation and building a robust statement of financial position to
support the growth of the business.
Own shares held
The cost of the Group's own shares purchased through the
Employee Benefit Trust is shown as a deduction from equity. 248,554
options were exercised on 1 June 2018 and own shares held in the
EBT were used to satisfy this demand. The balance of GBP298,919 on
the own shares held reserve within equity reflects 427,027 shares
remaining in the EBT that will be used to satisfy future
exercises.
S L Dye 30 July 2018
Group Finance Director
Consolidated statement of comprehensive income
Six months ended 30 June 2018
Six-month Six-month Year ended
period ended period 31 December
30 June ended 2017
2018 30 June Audited
2017
Unaudited Unaudited (Restated)
Notes GBP'000 GBP'000 GBP'000
------------------------------------- ------- --------------- ----------- --------------
Revenue 2 41,125 35,127 71,687
Cost of sales 2 (34,460) (29,126) (59,710)
------------------------------------- ------- --------------- ----------- --------------
Gross profit 2 6,665 6,001 11,977
Administrative expenses (5,834) (5,374) (10,730)
------------------------------------- ------- --------------- ----------- --------------
Profit from operations 831 627 1,247
Financing expense (61) (37) (81)
------------------------------------- ------- --------------- ----------- --------------
Profit before tax 770 590 1,166
Tax expense 3 (148) (93) (183)
------------------------------------- ------- --------------- ----------- --------------
Net profit and total comprehensive
income for the period 622 497 983
------------------------------------- ------- --------------- ----------- --------------
Earnings per ordinary share 5
Basic 4.38p 3.58p 7.07p
------------------------------------- ------- --------------- ----------- --------------
Diluted 4.10p 3.39p 6.61p
------------------------------------- ------- --------------- ----------- --------------
Consolidated statement of changes in equity
Six months ended 30 June 2018
Six months ended 30 June 2018:
Share Share Own Capital Share Profit Total
capital premium shares redemption based and equity
held reserve payment loss
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at
31 December
2017 (as previously
stated) 146 120 (473) 50 215 4,131 4,189
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Prior year
adjustment
- IFRS 15 Revenue
from contracts
with customers
(see note 1) - - - - - (138) (138)
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Balance at
1 January 2018
(as restated) 146 120 (473) 50 215 3,993 4,051
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Profit and
total comprehensive
income for
the period - - - - - 622 622
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Dividends - - - - - (327) (327)
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Share options
exercised - - 174 - (76) (83) 15
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Share based
payment reserve - - - - 70 - 70
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
At 30 June
2018 (unaudited) 146 120 (299) 50 209 4,205 4,431
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Consolidated statement of changes in equity
Six months ended 30 June 2018
Six months ended 30 June 2017:
Share Share Own Capital Share Profit Total
capital premium shares redemption based and equity
held reserve payment loss
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2017 (audited) 145 96 (473) 50 95 3,455 3,368
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Profit and
total comprehensive
income for
the period - - - - 497 497
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Dividends (restated) - - - - - (277) (277)
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Share based
payment reserve - - - 58 - 58
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
At 30 June
2017 (unaudited) 145 96 (473) 50 153 3,675 3,646
----------------------- ---------- ---------- --------- ------------- ---------- --------- ---------
Year ended 31 December 2017:
Share Share Own Capital Share Retained Total
capital premium shares redemption based earnings equity
held reserve payment
reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------- ---------- --------- ------------- ---------- ----------- ---------
At 1 January
2017 145 96 (473) 50 95 3,455 3,368
(Audited)
------------------ ---------- ---------- --------- ------------- ---------- ----------- ---------
Profit (as
restated) - - - - - 983 983
------------------ ---------- ---------- --------- ------------- ---------- ----------- ---------
Dividends - - - - - (445) (445)
------------------ ---------- ---------- --------- ------------- ---------- ----------- ---------
Share options
exercised 1 24 - - - - 25
------------------ ---------- ---------- --------- ------------- ---------- ----------- ---------
Share based
payment charge - - - - 120 - 120
------------------ ---------- ---------- --------- ------------- ---------- ----------- ---------
At 31 December
2017 Audited
(Restated) 146 120 (473) 50 215 3,993 4,051
------------------ ---------- ---------- --------- ------------- ---------- ----------- ---------
Consolidated statement of financial position
As at 30 June 2018
Six-month Six-month Year ended
period period 31 December
ended ended 2017
30 June 30 June Audited
2018 Unaudited 2017 Unaudited (Restated)
(Restated)
GBP'000 GBP'000 GBP'000
-------------------------------- ----------------- ----------------- --------------
Assets
Non-current
Goodwill 132 132 132
Other intangible assets 382 576 472
Property, plant and equipment 1,494 1,418 1,410
Deferred tax asset 82 59 84
--------------------------------- ----------------- ----------------- --------------
2,090 2,185 2,098
Current
Cash and cash equivalents - - 161
Inventories 8 12 6
Trade and other receivables 14,900 10,606 13,052
--------------------------------- ----------------- ----------------- --------------
Total current assets 14,908 10,618 13,219
Total assets 16,998 12,803 15,317
--------------------------------- ----------------- ----------------- --------------
Liabilities
Current
Trade and other payables (6,151) (4,908) (6,310)
Corporation tax (324) (141) (176)
Current borrowings (6,026) (4,051) (4,712)
--------------------------------- ----------------- ----------------- --------------
Total current liabilities (12,501) (9,100) (11,198)
Non-current liabilities
Deferred tax liabilities (66) (57) (68)
--------------------------------- ----------------- ----------------- --------------
Net assets 4,431 3,646 4,051
--------------------------------- ----------------- ----------------- --------------
Equity
Share capital 146 145 146
Share premium 120 96 120
Capital redemption reserve 50 50 50
Own shares held (299) (473) (473)
Share based payment reserve 209 153 215
Profit and loss account 4,205 3,675 3,993
Total equity 4,431 3,646 4,051
--------------------------------- ----------------- ----------------- --------------
Consolidated statement of cash flows
Six months ended 30 June 2018
Six-month Six-month Year ended
period period 31 December
ended 30 ended 30 2017
June 2018 June 2017 Audited
Unaudited Unaudited (Restated)
Notes GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit from operations 2 831 627 1,247
Adjustments for:
Depreciation and amortisation 204 199 399
Employee equity settled share
options charge 70 58 120
Change in inventories (2) - 6
Change in trade and other receivables (1,848) 577 (1,869)
Change in trade and other payables (486) (955) 881
---------------------------------------- ------- ------------ ------------ --------------
Cash (outflow) / inflow from
operations (1,231) 506 784
Income tax paid - - (226)
Net cash (outflow) / inflow
from operating activities (1,231) 506 558
---------------------------------------- ------- ------------ ------------ --------------
Cash flows from investing activities
Purchases of property, plant
and equipment (198) (291) (379)
Net cash used in investing
activities (198) (291) (379)
Cash flows from financing activities
Interest payments (61) (37) (81)
Dividends paid - - (445)
Proceeds from exercise of share
options 15 - 25
Net cash outflow from financing
activities (46) (37) (501)
---------------------------------------- ------- ------------ ------------ --------------
Net (decrease) / increase in
cash and cash equivalents (1,475) 178 (322)
---------------------------------------- ------- ------------ ------------ --------------
Cash and cash equivalents at
beginning of period (4,551) (4,229) (4,229)
---------------------------------------- ------- ------------ ------------ --------------
Cash and cash equivalents at
end of period 6 (6,026) (4,051) (4,551)
---------------------------------------- ------- ------------ ------------ --------------
Notes to the interim statement
Six months ended 30 June 2018
1. Accounting policies
a) General information
RTC Group Plc is incorporated and domiciled in England and its
shares are publicly traded on AIM. The registered office address is
The Derby Conference Centre, London Road, Derby, DE24 8UX. The
company's registered number is 02558971. The principal activities
of the Group are described in note 2.
The Board consider the principal risks and uncertainties
relating to the Group for the next six months to be the same as
detailed in our last Annual Report and Accounts to 31 December
2017. The Group's financial risk management objectives and policies
are consistent with those disclosed in the consolidated financial
statements as at and for the year ended 31 December 2017.
b) Basis of preparation
The unaudited interim Group financial information of RTC Group
Plc is for the six months ended 30 June 2018 and does not comprise
statutory accounts within the meaning of S.435 of the Companies Act
2006. The unaudited interim Group financial statements have been
prepared in accordance with the AIM rules and have not been
reviewed by the Group's auditors. This report should be read in
conjunction with the Group's Annual Report and Accounts for the
year ended 31 December 2017, which have been prepared in accordance
with IFRS's as adopted by the European Union.
These unaudited interim Group financial statements were approved
for issue on 30 July 2018. No significant events, other than those
disclosed in this document, have occurred between 30 June 2018 and
this date.
c) Comparatives
The comparative figures for the year ended 31 December 2017 do
not constitute statutory accounts within the meaning of S.435 of
the Companies Act 2006, but they have been derived from the audited
financial statements for that year, which have been filed with the
Registrar of Companies. The report of the auditor was unqualified
and did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006 nor a reference to any matters which the auditor
drew attention by way of emphasis of matter without qualifying
their report. The comparative figures have been adjusted to reflect
the prior year restatement to implement the adoption of new
accounting standards.
The comparative figures for the period ended 30 June 2017 were
not impacted by the adoption of new accounting standards but have
been restated to present the final dividend declared for the year
ended 31 December 2016 as a liability, following approval at the
AGM on 19 April 2017.
d) Accounting policies
In preparing these interim financial statements, the Board have
considered the impact of new standards which will be applied in the
2018 Annual Report and Accounts. Other than the adoption of IFRS 15
Revenue from Contracts with Customers and IFRS 9 Financial
Instruments, which are both effective for accounting periods
starting on or after 1 January 2018, there are not expected to be
any changes in the accounting policies compared to those applied at
31 December 2017.
Notes to the interim statement
Six months ended 30 June 2018
d) Accounting policies (continued)
A full description of accounting policies is contained with our
2017 Annual Report and Accounts which is available on our
website.
This interim announcement has been prepared in accordance with
the recognition and measurement requirements of International
Financial Reporting Standards issued by the International
Accounting Standards Board, as adopted by the European Union as
effective for periods beginning on or after 1 January 2018.
New accounting standards
The Group has adopted the following new standards (effective 1
January 2018) in these interim financial statements:
IFRS 15 Revenue from contracts with customers (effective 1
January 2018). IFRS 15 sets out a single and comprehensive
framework for revenue recognition. The guidance in IFRS 15 is
considerably more detailed than previous IFRSs for revenue
recognition (IAS 11 Construction Contracts and IAS 18 Revenue and
associated Interpretations). An assessment of the impact of IFRS 15
has been completed, including a comprehensive review of the
contracts that exist across the Group's revenue streams. This has
ascertained that for the current contracts within the Group there
will be no significant impact on revenue as previously recognised.
However, because of the transition to IFRS 15, deferred costs of
GBP171,000 associated with certain contracts at 31 December 2017
(31 December 2016: GBPNil, 30 June 2017: GBPNil) were identified
which do not meet the recognition criteria in IFRS 15. Accordingly,
the comparative figures have been restated to reflect the adoption
of IFRS15, together with the associated tax impact.
IFRS 9 Financial instruments (effective 1 January 2018). IFRS 9
addresses the classification and measurement of financial assets
and liabilities and replaces IAS 39. Among other things, the
standard introduces a forward- looking credit loss impairment model
whereby entities need to consider and recognise impairment triggers
that might occur in the future (an "expected loss" model). The
Board has considered the potential impact of the introduction of
IFRS9 and determined that it does not have a significant impact on
numbers reported in the financial statements for the year ended 30
June 2018 or as previously presented.
The impact of new standards that have been issued but are not
yet effective has also been considered, the most significant being
IFRS 16. Whilst the Board has reviewed the implications for the
Group and determined the likely impact, they have decided that
early adoption is not appropriate.
Notes to the interim statement
Six months ended 30 June 2018
d) Accounting policies (continued)
IFRS 16 Leases (effective 1 January 2019) IFRS 16 sets out the
principles for recognition, measurement, presentation and
disclosure of leases and will replace IAS 17 Leases. Adoption of
IFRS 16 will result in the Group recognising right of use assets
and lease liabilities for all qualifying contracts that are, or
contain, a lease. Instead of recognising an operating expense for
its operating lease payments, the Group will instead recognise
interest on its lease liabilities and amortisation on its
right-of-use assets, impacting profit from operations and the
finance expense. The standard is effective for accounting periods
beginning on or after 1 January 2019 and contains several options
and exemptions which are available at initial adoption. The Board
have reviewed the expected impact of this standard and their
current assessment, based on applying the modified retrospective
transition method and adopting certain practical expedients, is
that the right of use asset to be recognised as the 1 January 2019
will be approximately GBP4m, together with a corresponding lease
obligation of GBP4m. The impact on profit before tax for the Group
for the financial year ended 31 December 2019 is not expected to be
material and there will be no impact on opening equity at 1 January
2019.
2. Segment analysis
The Group is a provider of recruitment services that has its
headquarters at the Derby Conference Centre which is contained
within the Central Services segment. The recruitment business
comprises three distinct business units - ATA predominantly
servicing the UK engineering market; GSS servicing the
international market and Ganymede supplying labour into safety
critical environments.
Segment information is provided below in respect of ATA,
Ganymede, GSS and the Central Services which, as well as being the
head office and providing all central services for the Group,
generates income from excess space at the Derby site including
rental and conferencing facilities.
The Group manages the trading performance of each segment by
monitoring operating contribution and centrally manages working
capital, borrowings and equity.
Revenues are generated from permanent and temporary recruitment
and contracts for labour supply in the recruitment division.
Revenue is analysed by origin of customer/point of invoicing.
All revenues have been invoiced to external customers. During
the first half of 2018, one customer in ATA contributed 10% or more
of that segment's revenues being GBP4.3m (2017: GBP3.2m), one
customer in GSS contributed 10% or more of that segment's revenues
being GBP6.5m (2017: GBP4.8m) and one customer in Ganymede also
contributed 10% or more of that segment's revenues being GBP9.4m
(2017: GBP11.7m).
Notes to the interim statement
Six months ended 30 June 2018
The segment information for the reporting period is as
follows:
Six months ended 30 June 2018:
Recruitment Central Total
Unaudited ATA GSS Ganymede Services Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- ------------- --------- ---------- ---------- ----------
External sales revenue 17,717 6,886 15,691 831 41,125
Cost of sales (14,649) (5,987) (13,443) (381) (34,460)
--------------------------------- ------------- --------- ---------- ---------- ----------
Gross profit 3,068 899 2,248 450 6,665
Administrative expenses* (2,121) (355) (1,484) (1,670) (5,630)
Amortisation of intangibles* (25) - (65) - (90)
Depreciation* (9) (2) (17) (86) (114)
--------------------------------- ------------- --------- ---------- ---------- ----------
Profit / (loss) from
operations 913 542 682 (1,306) 831
--------------------------------- ------------- --------- ---------- ---------- ----------
Finance expense (61)
--------------------------------- ------------- --------- ---------- ---------- ----------
Profit before tax 770
--------------------------------- ------------- --------- ---------- ---------- ----------
Tax expense (148)
--------------------------------- ------------- --------- ---------------------- ----------
*combine to represent administrative expenses of GBP5,834,000 in
the consolidated statement of comprehensive income.
Six months ended 30 June 2017:
Recruitment Central Total
Unaudited ATA GSS Ganymede Services Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- ------------- --------- ---------- ---------- ----------
External sales revenue 13,674 4,832 15,862 759 35,127
Cost of sales (11,126) (4,319) (13,327) (354) (29,126)
--------------------------------- ------------- --------- ---------- ---------- ----------
Gross profit 2,548 513 2,535 405 6,001
Administrative expenses* (1,973) (305) (1,427) (1,470) (5,175)
Amortisation of intangibles* (24) - (66) - (90)
Depreciation* (16) - (15) (78) (109)
--------------------------------- ------------- --------- ---------- ---------- ----------
Profit / (loss) from
operations 535 208 1,027 (1,143) 627
--------------------------------- ------------- --------- ---------- ---------- ----------
Finance expense (37)
--------------------------------- ------------- --------- ---------- ---------- ----------
Profit before tax 590
--------------------------------- ------------- --------- ---------- ---------- ----------
Tax expense (93)
--------------------------------- ------------- --------- ---------------------- ----------
*combine to represent administrative expenses of GBP5,374,000 in
the consolidated statement of comprehensive income.
Notes to the interim statement
Six months ended 30 June 2018
Year ended 31 December 2017:
Recruitment Central Total
Audited (Restated) ATA GSS Ganymede Services Group
Restated Restated
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- ---------- --------- ----------- ---------- -----------
External sales revenue 29,166 10,259 30,683 1,579 71,687
Cost of sales (24,056) (9,047) (25,862) (745) (59,710)
-------------------------------- ---------- --------- ----------- ---------- -----------
Gross profit 5,110 1,212 4,821 834 11,977
Administrative expenses* (3,710) (673) (2,877) (3,062) (10,332)
Amortisation of intangibles* (48) - (131) - (179)
Depreciation* (52) (2) (33) (132) (219)
-------------------------------- ---------- --------- ----------- ---------- -----------
Profit / (loss) from
operations 1,300 537 1,780 (2,360) 1,247
-------------------------------- ---------- --------- ----------- ---------- -----------
Finance expense (81)
-------------------------------- ---------- --------- ----------- ---------- -----------
Profit before tax 1,166
-------------------------------- ---------- --------- ----------- ---------- -----------
Tax expense (183)
-------------------------------- ---------- --------- ----------- ---------- -----------
*combine to represent administrative expenses of GBP10,730,000
in the consolidated statement of comprehensive income.
All assets and liabilities are held in the United Kingdom.
Notes to the interim statement
Six months ended 30 June 2018
3. Income tax
Six-month Six-month Year ended
period ended period ended 31 December
30 June 2018 30 June 2017
Unaudited 2017 Unaudited Audited
Continuing operations (Restated)
GBP'000 GBP'000 GBP'000
------------------------------------ --------------- ----------------- --------------
Analysis of tax:
Current tax
UK corporation tax 148 141 252
Adjustment in respect of previous
period - - 5
------------------------------------ --------------- ----------------- --------------
148 141 257
Deferred tax - (29) (74)
Adjustment in respect of previous -
period - (19)
Tax 148 93 183
------------------------------------ --------------- ----------------- --------------
Factors affecting the tax expense
The tax assessed for the six-month period ended 30 June 2018 is
higher than would be expected by multiplying profit on ordinary
activities by the standard rate of corporation tax in the UK of 19%
(2017:19.25%). The differences are explained below:
Six-month Six-month Year ended
period ended period ended 31 December
30 June 2018 30 June 2017
Unaudited 2017 Unaudited Audited
(Restated)
Factors affecting tax expense GBP'000 GBP'000 GBP'000
------------------------------------- --------------- ----------------- --------------
Result for the period before
tax 770 590 1,166
------------------------------------- --------------- ----------------- --------------
Profit multiplied by standard
rate of tax of 19% (2017: 19.25%) 146 114 224
Non-deductible expenses 27 (1) 24
Tax credit on exercise of options (25) - (8)
Other movements - (1) (62)
Adjustment in respect of previous
period - (19) 5
------------------------------------- --------------- ----------------- --------------
Tax charge for the period 148 93 183
------------------------------------- --------------- ----------------- --------------
Notes to the interim statement
Six months ended 30 June 2018
4. Dividends
At the 30 June 2018 the final dividend in respect of the year
ended 31 December 2017 of GBP326,984 (2017: GBP277,362) was
recognised following approval at the AGM on 18 April 2018 and paid
to shareholders on 1 July 2018. The Directors also propose an
interim dividend of 1.3p per share (2017: 1.2p). The interim
dividend will be paid on 30 November 2018 to shareholders on the
register on 9 November 2018.
5. Earnings per share
The calculation of basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year.
The calculation of diluted earnings per share is based on the
basic earnings per share adjusted to allow for all dilutive
potential ordinary shares.
Basic Diluted
Six-month Six-month Six-month Six-month
period ended period ended period ended period ended
30 June 2018 30 June 2017 30 June 2018 30 June 2017
Unaudited Unaudited Unaudited Unaudited
Earnings
GBP'000 622 497 622 497
------------------ --------------- --------------- --------------- ---------------
Basic weighted
average number
of shares 14,216,680 13,868,126 14,216,680 13,868,126
------------------ --------------- --------------- --------------- ---------------
Dilutive
effect of
share options - - 969,723 792,794
------------------ --------------- --------------- --------------- ---------------
Fully diluted
weighted
average number
of shares - - 15,186,403 14,660,920
------------------ --------------- --------------- --------------- ---------------
Earnings
per share
(pence) 4.38p 3.58p 4.10p 3.39p
------------------ --------------- --------------- --------------- ---------------
The basic earnings per share at 31 December 2017 (restated) was
7.07p and diluted earnings per share (restated) was 6.61p.
Notes to the interim statement
Six months ended 30 June 2018
6. Reconciliation of cash and cash equivalents in cash flow to
cash balances in statement of financial position
At Cash and At
1 January 2018 cash equivalents 30 June 2018
Audited Unaudited
GBP'000 GBP'000 GBP'000
------------------------------------- ----------------- ------------------- ---------------
Overdraft and invoice discounting
arrangements (4,712) (1,475) (6,026)
Cash 161 - -
------------------------------------- ----------------- ------------------- ---------------
Cash and cash equivalents (4,551) (1,475) (6,026)
------------------------------------- ----------------- ------------------- ---------------
The Group has a working capital facility with HSBC Plc that
allows it to borrow up to 90% of the invoiced trade debtors of ATA,
GSS and Ganymede up to a maximum of GBP9.0m and an overdraft
facility of GBP50,000.
7. Borrowings
Included in current borrowings are bank overdrafts and an
invoice discounting facility which is secured by a cross guarantee
and debenture over all Group companies. There have been no defaults
or breaches of the terms of the facility during the current or
prior period.
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 FKODBPBKDAOB
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