TIDMSND
RNS Number : 5788P
Sanderson Group PLC
09 June 2015
FOR IMMEDIATE RELEASE 9 JUNE 2015
SANDERSON GROUP PLC
Interim Results for the six months to 31 March 2015
"Continued progress, improved sales order intake and a very
strong order book; interim dividend up 12.5%
Appointment of Ian Newcombe as Chief Executive Officer"
Sanderson Group plc ('Sanderson' or 'the Group'), the software
and IT services business specialising in multi-channel retail and
manufacturing markets in the UK and Ireland, announces its interim
results for the six month period to 31 March 2015.
Commenting on the results, Chairman, Christopher Winn, said:
"The Group has made further progress during the period with
revenue increasing to GBP9.09 million (2014: GBP7.94 million) and
operating profit rising to GBP1.37 million (2014: GBP1.21 million).
Pre-contracted licence and ongoing support services recurring
revenue grew to GBP4.76 million (2014: GBP4.41 million)
representing 52% of total revenue in the period. Gross margin has
been maintained at a robust 85% (2014: 87%), reflecting our
continuing emphasis on the supply of Sanderson 'owned' proprietary
software and services. The Group's order book at the period end was
very strong and stood at GBP2.84 million (2014: GBP2.47
million).
"I am also very pleased to announce that Ian Newcombe, who has
made a major contribution to the formulation of the Group's
strategy and who has personally driven the development of the
multi-channel business has been appointed as Group Chief Executive
with immediate effect".
Highlights - Financial
-- Revenue increased to GBP9.09 million (2014: GBP7.94 million).
-- Pre-contracted recurring revenues of GBP4.76 million (2014: GBP4.41 million), representing
approximately 52% of total revenue.
-- Multi-channel retail division revenue and operating profits* increased to GBP5.96 million
(2014: GBP4.71 million) and GBP1.01 million (2014: GBP0.85 million) respectively; increased
levels of business from new customers and trend towards bigger orders from existing customers;
-- Manufacturing division revenue and operating profits* of GBP3.14 million (2014: GBP3.23 million)
and GBP0.36 million (2014: GBP0.37 million) respectively.
-- Operating profit* increased 13% to GBP1.37 million (2014: GBP1.21 million).
-- Profit before tax of GBP0.91 million (2014: GBP0.78 million).
-- Basic earnings per share of 1.5 pence (2014: 1.4 pence).
-- Net cash at period-end of GBP3.95 million (2014: GBP5.07 million) after acquisition related
cash consideration payments of GBP1.8 million.
-- Interim dividend up 12.5% to 0.9 pence per share (2014: 0.8 pence; 2013: 0.65 pence).
Highlights - Operational
-- Strong trading momentum maintained, complemented by increased levels of new business
-- Very strong order book of GBP2.84 million at period end (2014: GBP2.47 million)
-- Five new multi-channel retail customers during period, including Anzac Wines & Spirits; number
of large orders from existing customers including Superdry; eight new customers added by manufacturing
including Nutrifresh; several large projects with existing customers including Cook Trading.
-- Continued investment in proprietary solutions using mobile technologies.
-- Appointment today of Ian Newcombe as Group CEO.
* Operating profit is stated before amortisation of
acquisition-related intangibles, share-based payment charges and
acquisition-related costs
On current trading and prospects, Mr Winn, added:
"Whilst the Group will continue to invest across all of its
businesses, particular emphasis will be placed on further
developing the range of solutions for mobile and ecommerce
businesses, for the food and drink processing sector and for entry
level systems in the manufacturing division. Mobile solutions
continue to be developed across all of the Group's target markets.
To augment organic growth, selective acquisition opportunities will
continue to be considered. However, in the current year, management
intends to focus on delivering another set of "on target" trading
results.
The general economic environment continues to show signs of
improvement, though sales cycles remain protracted. The Board
remains cautious in its approach but a strong order book and
healthy balance sheet together with a long list of sales prospects,
provides the Board with a good level of confidence that the Group
will continue to make further progress and deliver trading results
in line with market expectations for the current year ending 30
September 2015."
Enquiries:
Christopher Winn, Chairman Telephone: 0333 123 1400
Ian Newcombe, Group Chief Executive
Adrian Frost, Finance Director
Paul Vann, Walbrook PR Limited Telephone: 0117 985 8989
or 07768 807631
Mark Taylor, Charles Stanley Securities Telephone: 020 7149 6000
(Nominated Advisor)
SANDERSON GROUP PLC
Interim Results for the six months to 31 March 2015
chairman's statement
Sanderson Group plc ('Sanderson' or 'the Group'), the software
and IT services business specialising in multi-channel retail and
manufacturing markets in the UK and Ireland, announces its interim
results for the six month period ended 31 March 2015 ('the
period').
Results
The Group has made further progress during the period with
revenue increasing to GBP9.09 million (2014: GBP7.94 million) and
operating profit rising to GBP1.37 million (2014: GBP1.21 million).
Pre-contracted licence and ongoing support services recurring
revenue grew to GBP4.76 million (2014: GBP4.41 million)
representing 52% of total revenue in the period. Gross margin has
been maintained at a robust 85% (2014: 87%), reflecting our
continuing emphasis on the supply of Sanderson 'owned' proprietary
software and services. The Group's order book at the period end was
very strong and stood at GBP2.84 million (2014: GBP2.47
million).
The Sanderson Board remains committed to pursuing a growth
strategy based upon a conservative financing policy, the
cornerstone of which is a strong balance sheet. The Group has an
established history of converting substantially all of its profit
to cash. During the period, the collection of a number of sales
ledger balances slipped beyond the period end, with a total of
GBP435,000 being received in the first week of April. At 31 March
2015, after the payment of GBP1.80 million consideration and
deferred consideration in respect of acquired businesses, the
Group's net cash balance was GBP3.95 million (2014: GBP5.07
million).
Dividend
The Board is also committed to maintaining a progressive
dividend policy and is pleased to declare an increase of 12.5% in
the level of the interim dividend to 0.90 pence per share (2014:
0.80 pence). The dividend will be paid on 14 August 2015 to
shareholders on the register at the close of business on 17 July
2015.
Acquisition of Warehouse Management Software provider,
Proteus
On 5 December 2014, the Group acquired a supplier of warehouse
management solutions, Proteus Software Limited ('Proteus'), for an
initial cash consideration of GBP1.40 million. Up to a further
GBP0.5 million is payable in March 2016, based upon the trading
performance of Proteus in the twelve months following acquisition.
Proteus solutions, which complement the Group's own products,
services and customers are used by businesses operating in the
areas of third party logistics, warehouse management and supply
chain distribution.
Business review
The primary target market for Sanderson products and services is
generally small and medium sized businesses whose current business
outlook we would describe as 'cautiously optimistic'. At the core
of the Group's well-developed business model is a strategy to
foster long-term customer relationships resulting in a high
proportion of sales arising from pre-contracted recurring revenue.
Sanderson software is licensed to customers on a 'right to use'
basis and these licence revenues are supplemented by support,
implementation and project management services provided by Group
staff.
The Group's solutions are developed and marketed to provide
customers with 'value for money' IT systems which offer tangible
business benefits. These solutions typically enable customers to
increase sales and revenue whilst also achieving additional
efficiencies by making and maintaining cost savings, often within
twelve months of implementation. The Group has continued to invest
in both the development of software products and services, as well
as in sales and marketing. Particular emphasis has been placed on
the Group businesses specialising in the UK food and drink
processing sector ('food and drink') and more especially in the
development of mobile commerce solutions which enable retailers to
capitalise on the huge growth in the widespread adoption of
smartphones and tablets and to exploit mobile as a sales channel
integrated with existing business systems.
Reflecting prior and continuing investment in the Group's sales
and marketing capacity and capability, Sanderson achieved an
improved intake of sales orders in the period of GBP4.94 million
compared with GBP4.27 million last year. Thirteen new customers
being gained (2014: twelve).
Review of multi-channel retail
Sanderson provides comprehensive IT solutions to businesses
operating in the ecommerce, mobile commerce, wholesale
distribution, cash and carry and retail sectors of the UK. Mobile
enablement and deployment continues to be a key business driver in
this sector with increasing levels of business activity. The
wholesale distribution and cash and carry market has been a slower
area of business during the period for the Group but prospects for
the second half year are good, driven by the release in February
2015 of our latest enhanced version of software. Proteus has made a
steady start to being part of Sanderson and has helped to further
expand the Group's presence in the areas of warehousing, logistics
and supply chain. A number of internal 'joint' sales opportunities
are being developed.
Five new customers were gained during the period, including
Anzac Wines & Spirits, Lavitta, Quba & Co and Matthew
Algie. This compares with seven in the comparative period of 2014.
The multi-channel retail division has continued to also gain a
number of large orders from existing customers including JD Sports,
Kingstown Associates, Healthspan and Superdry.
Divisional revenue was GBP5.96 million (2014: GBP4.71 million)
and operating profit rose by just under 20% to GBP1.01 million
(2014: GBP0.85 million). The period end order book was very strong
at GBP1.80 million (2014: GBP1.19 million) and with good sales
prospects, the multi-channel retail business is well-positioned to
achieve its increased trading targets for the current financial
year ending 30 September 2015.
Review of manufacturing
Businesses in the engineering, plastics, aerospace, electronics,
print ('general manufacturing') and food and drink processing
sectors represent the main areas of specialisation for Sanderson in
manufacturing markets. Sanderson continues to invest in product
development and in its sales and marketing capability for its food
and drink business. Traceability of products and ingredients
through the food manufacturing and supply chain is a strong feature
of the Sanderson food and drink solution - a key requirement for
businesses operating in the food and drink industry. Although, the
overall divisional trading performance was flat as compared with
the comparative period of 2014, the Sanderson general manufacturing
business improved its trading performance compared with the first
half of 2014 and this improvement is expected to continue into the
second half of the current year. The Group's food and drink
business experienced some delays in the receipt of expected sales
orders.
Eight new customers were gained during the period, including
Simtom Food Products, Summit Chairs, St Marcus Fine Foods, Wine
Bottling Solutions and NutriFresh. This compares with five new
customers in the comparative period of 2014. Large projects with
existing customers included Magnadata, Cook Trading, Food Partners
and Freddy Hirsch.
The Group has had some success with its entry level Unity ERP
('Enterprise Resource Planning) product which is aimed at smaller
and emerging businesses and over the coming months we expect to
further develop our software and to launch new products, including
further cloud-based solutions, into our target manufacturing
markets.
Revenue for the period was GBP3.14 million (2014: GBP3.23
million) and operating profit was GBP365,000 (2014: GBP367,000).
Recurring revenue represents over 61% of total divisional revenue
and covers over three-quarters of divisional overheads. The order
book is GBP1.04 million (2014: GBP1.28 million) and together with a
strong sales prospect list, should ensure that the manufacturing
division achieves another improved trading result for the full year
ending 30 September 2015.
Management and staff
I am pleased to announce that Ian Newcombe, who has made a major
contribution to the formulation of the Group's strategy and who has
personally driven the development of the multi-channel business,
has been appointed as Group Chief Executive with immediate effect.
The Sanderson executive plc team comprises myself as Executive
Chairman, Ian Newcombe as Group Chief Executive, and Adrian Frost
as Group Finance Director.
The Board of Sanderson Group plc has been further strengthened
by the appointment of David Gutteridge, as a non-executive
director. David has considerable business experience including with
Financial Objects plc, Cyan Holdings plc and Sanderson Group plc as
a non-executive director between IPO in 2004 up until 2012. David
was Chairman of Tinglobal Limited until May 2014, when he led a
successful trade sale to Singapore Listed, Declout Plc.
Sanderson now employs 223 staff with a high level of experience
and specialist expertise in the market sectors which the Group
addresses. On behalf of the Board, I would again like to thank
everyone for their hard work, support, dedication and contribution
to the ongoing development of the Group.
Strategy
The strategy of the Board is to achieve sustained growth by
further building and developing the Sanderson businesses operating
within the multi-channel retail and manufacturing target markets.
Whilst the Group will continue to invest across all of its
businesses, particular emphasis will be placed on further
developing the range of solutions for mobile and ecommerce
businesses, for the food and drink processing sector and for entry
level systems in the manufacturing division. Mobile solutions
continue to be developed across all of the Group's target
markets.
In order to augment organic growth, selective acquisition
opportunities will continue to be considered. However, in the
current year, management intends to focus on delivering another set
of 'on target' trading results.
Outlook
The general economic environment continues to show signs of
improvement, though sales cycles remain protracted. The Board
remains cautious in its approach but a strong order book and
healthy balance sheet together with a long list of sales prospects,
provides the Board with a good level of confidence that the Group
will continue to make further progress and deliver trading results
in line with market expectations for the current year ending 30
September 2015.
Christopher Winn
Chairman
9 June 2015
CONSOLIDATED INCOME STATEMENT
Note Unaudited Unaudited Audited
six months six months year to
to 31/03/15 to 31/03/14 30/09/14
GBP000 GBP000 GBP000
Revenue 2 9,090 7,940 16,411
Cost of sales (1,388) (1,028) (2,483)
------------ ------------ ---------
Gross profit 7,702 6,912 13,928
Other operating expenses (6,696) (6,061) (11,880)
------------ ------------ ---------
Results from operating activities 2 1,006 851 2,048
Results from operating activities
before adjustments in respect
of the following: 2 1,374 1,215 2,839
Amortisation of acquisition-related
intangibles (236) (172) (387)
Acquisition related costs (87) (157) (303)
Share-based payment charges (45) (35) (101)
------------ ------------ ---------
Results from operating activities 2 1,006 851 2,048
------------------------------------ ----- ------------ ------------ ---------
Net finance expense (101) (72) (132)
------------ ------------ ---------
Profit before taxation 905 779 1,916
Taxation (71) (59) (318)
------------ ------------ ---------
Profit for the period attributable
to equity holders of the parent 834 720 1,598
============ ============ =========
Earnings per share
From profit attributable to the
owners of the parent undertaking
during the period
Basic earnings per share 41.5p 1.4p 3.1p
Diluted earnings per share 41.5p 1.3p 2.9p
==== ==== ====
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited Audited
six months six months year to
to 31/03/15 to 31/03/14 30/09/14
GBP000 GBP000 GBP000
Profit for the period 834 720 1,598
Other comprehensive income/(expense)
Items that will not subsequently
be reclassified to profit
or loss
Actuarial result on defined
benefit pension schemes - - (834)
Income tax relating to components
of other comprehensive income - - 183
------------- ------------- ----------
- - (651)
Items that will subsequently
be reclassified to profit
or loss
Change in the fair value
of available for sale financial
asset (22) 42 17
Foreign exchange translation
differences (6) - 23
Total comprehensive income
for the period 806 762 987
------------- ------------- ----------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
as at as at as at
31/03/15 31/03/14 30/09/14
GBP000 GBP000 GBP000
Non-current assets
Intangible assets 30,573 28,160 28,514
Property, plant & equipment 359 325 294
Deferred tax asset 1,048 1,221 1,145
---------- ---------- ----------
31,980 29,706 29,953
---------- ---------- ----------
Current assets
Inventories 27 5 4
Trade and other receivables 5,157 4,874 4,706
Current tax - - -
Other short-term financial
assets 200 247 222
Cash and cash equivalents 3,954 5,067 6,159
---------- ---------- ----------
9,338 10,193 11,091
---------- ---------- ----------
Current liabilities
Trade and other payables (3,431) (3,523) (3,355)
Deferred consideration (860) (645) (815)
Current tax liabilities (39) (5) (47)
Deferred income (4,853) (4,427) (4,412)
---------- ---------- ----------
(9,183) (8,600) (8,629)
---------- ---------- ----------
Net current assets 155 1,593 2,462
Non-current liabilities
Deferred tax liabilities (747) (453) (581)
Deferred consideration (606) (1,399) (1,213)
Pension and other employee
obligations (4,600) (4,072) (4,804)
(5,953) (5,924) (6,598)
---------- ---------- ----------
Net assets 26,182 25,375 25,817
---------- ---------- ----------
Equity
Called-up share capital 5,455 5,184 5,406
Share premium 9,015 7,699 8,809
Available for sale reserve 69 116 91
Foreign exchange reserve (15) (32) (9)
Retained earnings 11,658 12,408 11,520
---------- ---------- ----------
Total equity 26,182 25,375 25,817
---------- ---------- ----------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six month period to 31 March 2015
Share Share premium Other Retained Total equity
capital GBP000 reserves earnings GBP000
GBP000 GBP000 GBP000
At 1 October 2014 5,406 8,809 82 11,520 25,817
Exercise of share options 49 206 - (150) 105
Dividend paid - - - (544) (544)
Settlement of share options - - - (47) (47)
Share-based payment charge - - - 45 45
Transactions with owners 49 206 - (696) (441)
--------- -------------- ---------- ---------- -------------
Profit for the period - - - 834 834
Other comprehensive income:
Foreign exchange translation
difference - - (6) - (6)
Change in market value of
short-term financial asset - - (22) - (22)
Total comprehensive expense - - (28) 834 806
--------- -------------- ---------- ---------- -------------
At 31 March 2015 5,455 9,015 54 11,658 26,182
--------- -------------- ---------- ---------- -------------
For the six month period to 31 March 2014
Share Share premium Other reserves Retained Total equity
capital GBP000 GBP000 earnings GBP000
GBP000 GBP000
At 1 October 2013 4,380 4,302 42 12,175 20,899
Shares issued on placing 636 2,864 - - 3,500
Costs associated with placing - (180) - - (180)
Shares issued as consideration 131 619 - - 750
Exercise of share options 37 94 - (82) 49
Dividend paid - - - (440) (440)
Share-based payment charge - - - 35 35
--------- -------------- --------------- ---------- -------------
Transactions with owners 804 3,397 - (487) 3,714
--------- -------------- --------------- ---------- -------------
Profit for the period - - - 720 720
Other comprehensive income:
Change in market value of
short-term financial asset - - 42 - 42
--------- -------------- --------------- ---------- -------------
Total comprehensive expense - - 42 720 762
--------- -------------- --------------- ---------- -------------
At 31 March 2014 5,184 7,699 84 12,408 25,375
--------- -------------- --------------- ---------- -------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
For the year ended 30 September 2014
Share Share Other reserves Retained Total
capital premium GBP000 earnings equity
GBP000 GBP000 GBP000 GBP000
At 1 October 2013 4,380 4,302 42 12,175 20,899
Exercise of share options 258 1,206 - (830) 634
Issue of shares 768 3,482 - - 4,250
Costs incurred in respect
of share issue - (181) - - (181)
Dividend paid - - - (873) (873)
Share-based payment charge - - - 101 101
Transactions with owners 1,026 4,507 - (1,602) 3,931
--------- --------- --------------- ---------- --------
Profit for the year - - - 1,598 1,598
Other comprehensive income:
Remeasurement of net defined
benefit liability - - - (834) (834)
Deferred tax on above - - - 183 183
Foreign exchange translation
differences - - 23 - 23
Change in fair value of
available for sale financial
asset - - 17 - 17
--------- --------- --------------- ---------- --------
Total comprehensive expense - - 40 947 987
--------- --------- --------------- ---------- --------
At 30 September 2014 5,406 8,809 82 11,520 25,817
--------- --------- --------------- ---------- --------
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
six months six months year to
to 31/03/15 to 31/03/14 30/09/14
Note GBP000 GBP000 GBP000
Profit for the period 834 720 1,598
Adjustments for:
Depreciation and amortisation 490 326 765
Share-based payment charges 45 35 101
Net finance expense 101 72 132
Income tax expense 71 59 318
============= ============= ==========
Operating cash flow from continuing
operations before working capital
movements 1,541 1,212 2,914
Movement in working capital (792) (204) (224)
============= ============= ==========
Cash generated by continuing operations 749 1,008 2,690
Interest paid - - (2)
Payments to defined benefit pension
scheme (300) (180) (360)
Net cash from operating activities 449 828 2,328
------------- ------------- ----------
Investing activities
Purchases of property, plant &
equipment (101) (66) (113)
Acquisition of subsidiary, net
of cash acquired (948) (2,046) (2,046)
Deferred consideration paid (845) (50) (100)
Dividend received - - 15
Bank interest received 12 - 13
Expenditure on product development (286) (190) (680)
============= ============= ==========
Net cash received used in investing
activities (2,168) (2,352) (2,911)
============= ============= ==========
Financing activities
Equity dividends paid 5 (544) (440) (873)
Issue of shares, net of costs 105 3,369 3,953
Settlement of share options (47) - -
Net cash (used in)/arising from
financing activities (486) 2,929 3,080
============= ============= ==========
(Decrease)/increase in cash and
cash equivalents (2,205) 1,405 2,497
Cash and cash equivalents at start
of the period 6,159 3,662 3,662
Cash and cash equivalents at end
of the period 3,954 5,067 6,159
------------- ------------- ----------
NOTES TO THE INTERIM RESULTS
1. Basis of preparation
The Group's interim results for the six month period ended 31
March 2015 are prepared in accordance with the Group's accounting
policies which are based on the recognition and measurement
principles of International Financial Reporting Standards ('IFRS')
as adopted by the EU and effective, or expected to be adopted and
effective, at 30 September 2015. As permitted, this interim report
has been prepared in accordance with the AIM rules and not in
accordance with IAS34 'Interim financial reporting'.
These interim results do not constitute full statutory accounts
within the meaning of section 434(5) of the Companies Act 2006 and
are unaudited. The unaudited interim financial statements were
approved by the Board of Directors on 8 June 2015.
The consolidated financial statements are prepared under the
historical cost convention as modified to include the revaluation
of financial instruments. The statutory accounts for the year ended
30 September 2014, which were prepared under IFRS, have been filed
with the Registrar of Companies. These statutory accounts carried
an unqualified Auditors' Report and did not contain a statement
under either Section 498(2) or (3) of the Companies Act 2006.
2. Segmental reporting
The Group is managed as two separate divisions, manufacturing
and multi-channel retail. Substantially all revenue is generated
within the UK.
Manufacturing Multi-channel retail Total
Six Six Year Six Six Year Six Six Year
months months Ended months months Ended months months Ended
31/03/15 31/03/14 30/09/14 31/03/15 31/03/14 30/09/14 31/03/15 31/03/14 30/09/14
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------- --------- ---------- --------- --------- ---------- ---------- ---------- ----------
Revenue 3,135 3,227 6,736 5,955 4,713 9,675 9,090 7,940 16,411
--------- --------- ---------- --------- --------- ---------- ---------- ---------- ----------
Operating
profit
before
adjustments* 365 367 952 1,009 848 1,887 1,374 1,215 2,839
--------- --------- ---------- --------- --------- ---------- ---------- ---------- ----------
Amortisation (27) (26) (53) (209) (146) (334) (236) (172) (387)
Share-based
payment (4) (2) (22) (41) (33) (79) (45) (35) (101)
Acquisition-
related
costs - - - (87) (157) (303) (87) (157) (303)
--------- --------- ---------- --------- --------- ---------- ---------- ---------- ----------
Operating
profit 334 339 877 672 512 1,171 1,006 851 2,048
--------- --------- ---------- --------- --------- ----------
Net finance
expense (101) (72) (132)
---------- ---------- ----------
Profit before tax; continuing operations 905 779 1,916
---------- ---------- ----------
* Adjustments to operating profit in respect of amortisation of
acquisition-related intangibles, share-based payment charges and
acquisition-related costs.
3. Acquisition
On 5 December 2014 the Group acquired the entire issued ordinary
share capital of Proteus Software Limited for a maximum aggregate
consideration of GBP1.9 million. Cash consideration of GBP1.40
million was paid at completion with up to a further GBP500,000
payable by reference to the profitability of the business in the
year ending on the anniversary of the acquisition date.
The business provides warehouse management solutions to
businesses operating in the areas of third party logistics,
warehouse management and supply chain distribution. The business
complements the Group's existing operations in these areas, a major
reason for the Group completing the acquisition. Following
completion of the transaction, the Group controls 100% of the
voting rights of Proteus Software Limited.
In the period from acquisition to 31 March 2015 the business
contributed revenue of GBP866,000 and an operating profit of
GBP47,000 before amortisation of acquisition-related intangibles
and acquisition-related costs. Had Proteus Software Limited been
owned from 1 October 2014 the results of the Group set out in the
Income Statement would not have been materially different from
those shown.
It is estimated that the acquisition had the following effect on
the Group's assets and liabilities at the acquisition date:
Pre-acquisition Fair value Recognised
carrying adjustment value on
amount acquisition
GBP000 GBP000 GBP000
Property, plant and equipment 32 - 32
IPR 390 260 650
Other intangibles assets - 410 410
Stock 42 - 42
Trade and other receivables 692 (8) 684
Cash and cash equivalents 452 - 452
Deferred income (640) (144) (784)
Trade and other payables (370) (394) (764)
Deferred taxation - (192) (192)
---------------- ------------
Net identifiable assets and
liabilities 598 (68) 530
---------------- ------------
Goodwill on acquisition 1,135
-------------
1,665
=============
Cash consideration paid at completion 1,400
Deferred contingent cash consideration 265
-------------
Net consideration payable 1,665
=============
Deferred contingent cash consideration is stated at the
directors' estimate of the amount payable, based on trading
forecasts of the acquired business. The directors have not
discounted the deferred consideration as the full amount is payable
within twelve months of the reporting date.
Goodwill arising on the acquisition is not tax deductible.
4. Earnings per share
Unaudited Unaudited Audited
six months six months year to
to 31/03/15 to 31/03/14 30/09/14
GBP000 GBP000 GBP000
Earnings:
Result for the year from continuing
operations 834 720 1,598
Amortisation of acquisition-related
intangibles 236 172 387
Share-based payment charges 45 35 101
Acquisition-related costs 87 157 303
Adjusted profit for the year from
continuing operations 1,202 1,084 2,389
============ ============ =========
Number of shares: Unaudited Unaudited Audited
six months six months year to
to 31/03/15 to 31/03/14 30/09/14
No. No. No.
In issue at the start of the year 54,063,808 43,800,946 43,800,946
Effect of shares issued in the year 152,155 6,830,766 8,057,990
Weighted average number of shares
at year end 54,215,963 50,631,712 51,858,936
Effect of share options 1,465,785 2,901,219 2,328,723
Weighted average number of shares
(diluted) 55,681,748 53,532,931 54,187,659
============ ============ ==========
Earnings per share: Audited
Unaudited Unaudited year to
six months six months
to 31/03/15 to 31/03/14 30/09/14
(pence) (pence) (pence)
Total attributable to equity holders
of the parent undertaking:
Basic 1.5 1.4 3.1
Diluted 1.5 1.3 2.9
------------- ------------- ---------
Earnings per share, adjusted, from
continuing operations:
Basic 2.2 2.1 4.6
Diluted 2.2 2.0 4.4
--- --- ---
5. Equity dividends paid
Unaudited Unaudited Audited
Six months Six months Year to
to 31/03/15 to 31/03/14 30/09/14
GBP000 GBP000 GBP000
Interim dividend - - 432
Final dividend 544 440 440
------------- ------------- ----------
Total dividend paid in period 544 440 872
------------- ------------- ----------
6. Interim report
The Group's interim report will be sent to the Company's
shareholders. This report will also be available from the Company's
registered office and on the Company's website
www.sanderson.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAAKPEENSEAF
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