TIDMTNG
RNS Number : 2624X
Tangent Communications PLC
18 November 2014
Tangent Communications PLC ("Tangent" or the "Company)
Interim for the six month period ended 31 August 2014
Key Highlights
* Group revenues GBP13.26m (2013: GBP13.25m)
----------------------------------------------------------------
* 36% of group revenues now generated online
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* 30% growth in revenues at printed.com
----------------------------------------------------------------
* Underlying operating profit down to GBP0.96m (2013:
GBP1.51m)
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* Net cash at GBP1.71m (2013: GBP1.84m)
----------------------------------------------------------------
Commenting on the period, Tangent's Chief Executive, Timothy
Green, said:
"Tangent's Online print business continues to strengthen in a
competitive market. Our range of products has been expanded, and
many more customers have been reached.
Online sales are up 11% on 2013, with printed.com seeing
particularly strong first half sales. Online profits are in line
with the prior year after the strong growth delivered by
printed.com and Ravensworth, but were offset by the
under-performance of goodprint.
On the digital marketing side of the business, important
long-term changes were made. Tangent Snowball was down-sized and it
is now a leaner and more agile business. The drop in revenues
during the first half however had a material impact on profits.
Chief Executive's Review
Sales in the first half were GBP13.26m (2013: GBP13.25m) with
operating profit down at GBP0.96m (2013: GBP1.51m).Gross profit was
GBP7.79m (2013: GBP8.21m) and operating expenses up to GBP6.83m
(2013: GBP6.63m).
Online Segment - printed.com, Ravensworth, goodprint
Across our Online businesses, sales are driven by a range of
printed products that are manufactured in-house. First half sales
were up 11% at GBP8.84m (2013: GBP7.95m) with operating profit flat
at GBP1.03m (2013: GBP1.08m) as we invested in infrastructure and
people to drive online growth.
printed.com
It was a strong first half for printed.com, with sales up 30% to
GBP3.62m (2013: GBP2.78m). The key to printed.com success is
constant innovation, with a relentless push to get the right
products onto our website at the right price. This strategy
continues to attract new customers - up 15% year on year - and we
continue to see repeat purchases from our existing customer base -
up 56% year on year. For small businesses and sole traders, the
printed.com offer is particularly compelling, with a dedicated part
of the website tailored to particular groups, from wedding
stationers to photographers. The volume of customers these products
attract can be significant, and we will continue to create and
evolve the range of products offered.
Ravensworth
Sales were up 17% in the first half at GBP4.06m (2013:
GBP3.48m). Innovations in the first half of this year included
backlit window cards, home information packs, and our first digital
offering. This fully transactional website with a photo editing
service has attracted 1,500 orders to date and 100% of customers
have returned to buy again. A combination of the above led to the
17% sales growth in the period.
goodprint
Sales in the first half were down 31% at GBP1.16m (2013:
GBP1.69m). Competition in the market for selling business cards
continues to intensify and attracting one-off customers at any cost
is not part of our plan. Re-building the customer base will take
time. The new management team will lead a re-design of the website
and launch new products which will incur higher costs.
Agency Segment (Tangent Snowball, T/OD)
Sales are driven by our London-based businesses Tangent Snowball
and T/OD. First half sales were down 17% at GBP4.42m (2013:
GBP5.30m) with underlying operating profit at GBP0.16m (2013:
GBP0.67m).
Tangent Snowball
Sales were down 22% at GBP3.22m (2013: GBP4.14m). Tangent
Snowball revenues were affected by budget cuts from two key clients
and the previously announced divestment of operations in Australia.
Headcount has been reduced and Tangent Snowball is now a leaner and
more agile business. The second half of this financial year is set
to show an improvement compared to the first half.
T/OD
T/OD's sales grew by 3% to GBP1.20m (2013: GBP1.16m). Gross
margin continued to be above 70% as T/OD intensified its focus on
selling innovative print displays to high end retailers.
Non-recurring expense
The non-recurring expense of GBP0.23m (2013: Nil) relates to the
downsizing of Tangent Snowball.
Discontinued operations
During the first half, we completed the divestment of our
Australian business, Tangent Snowball PTY Ltd. A loss for the
period from discontinued operations of GBP0.12m is included this
year (2013: GBP0.05m).
Net Cash
Net cash at 31 August 2014 was GBP1.71m (2013: GBP1.84m). We
paid GBP0.66m for the final dividend (2013: GBP0.56m).
Outlook
We remain committed to being a leading player in the online
print sector. The opportunities are growing and we are determined
to seize on them: expanding our range; innovating new products;
tailoring our offering to the millions of businesses that need
quality printed material at a competitive price. We continue to
invest in our people and our technology - refining the Tangent
offer to drive future sales growth.
The Company expects the second half of this financial year to
show an improvement in the Tangent Snowball division compared to
the first half, however current softness in the goodprint division
and investment to improve the performance results in further
prudence for the full year.
Timothy Green
Chief Executive
For further information, please contact:
Tangent Communications PLC
Timothy Green - Chief Executive: 020 7462 6101
Kevin Cameron - Finance Director: 020 7462 6101
Canaccord Genuity Limited - Nominated adviser and broker
Consolidated statements of comprehensive income
for the half-year ended 31 August 2014
Bruce Garrow / Emma Gabriel 020 7523 8350 Half-year Half-year Year
Ended ended ended
31 August 31 August 28 February
2014 2013 2014
(unaudited) (unaudited) (audited)
Continuing operations Notes GBP000 GBP000 GBP000
-------------------------------------------------- ------ ------------ ------------ ------------
Revenue 13,256 13,252 26,503
Cost of sales (5,462) (5,042) (10,331)
-------------------------------------------------- ------ ------------ ------------ ------------
Gross profit 7,794 8,210 16,172
Operating expenses (6,826) (6,629) (13,489)
Share-based payment charges (10) (69) (183)
Underlying operating profit 958 1,512 2,500
Non-recurring expense 2 (226) - (131)
-------------------------------------------------- ------ ------------ ------------ ------------
Operating profit 732 1,512 2,369
Finance costs (5) (10) (18)
-------------------------------------------------- ------ ------------ ------------ ------------
Profit before tax 727 1,502 2,351
Tax (189) (357) (628)
-------------------------------------------------- ------ ------------ ------------ ------------
Profit for the period from continuing operations 538 1,145 1,723
-------------------------------------------------- ------ ------------ ------------ ------------
Discontinued operations
Loss for the period from discontinued operations 11 (122) (45) (25)
-------------------------------------------------- ------ ------------ ------------ ------------
Profit for the period 416 1,100 1,698
Other comprehensive income
Exchange differences on translating foreign
operations - (21) (42)
-------------------------------------------------- ------ ------------ ------------ ------------
Total comprehensive income for the period 416 1,079 1,656
-------------------------------------------------- ------ ------------ ------------ ------------
Basic earnings per share (pence) 5
From continuing operations 0.19 0.41 0.62
From discontinued operations (0.04) (0.01) (0.01)
From profit for the year 0.15 0.40 0.61
Diluted earnings per share (pence) 5
From continuing operations 0.19 0.40 0.60
From discontinued operations (0.04) (0.01) (0.01)
From profit for the year 0.15 0.39 0.59
Consolidated statement of changes in equity
for the half year ended 31 August 2014
Share Share Own Other Retained Total
Note capital premium shares reserves earnings Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------------- ----- -------- -------- ------- --------- --------- --------
Half year ended 31 August
2014
At 1 March 2014 2,805 8,587 - 4,025 16,698 32,115
Comprehensive income
Profit for the period - - - - 416 416
Total comprehensive income - - - - 416 416
------------------------------------- ----- -------- -------- ------- --------- --------- --------
Transactions with owners
Equity dividend 8 - - - - (663) (663)
Credit to equity for equity-settled
Share based payments - - - 20 - 20
Own shares acquired in
the period - - (379) - - (379)
Issue of shares 8 - - - - 8
------------------------------------- ----- -------- -------- ------- --------- --------- --------
Total transactions with
owners 8 - (379) 20 (663) (1,014)
At 31 August 2014 2,813 8,587 (379) 4,045 16,451 31,517
------------------------------------- ----- -------- -------- ------- --------- --------- --------
Half-year ended 31 August
2013
At 1 March 2013 2,790 8,584 - 3,898 15,484 30,756
Comprehensive income
Profit for the period - - - - 1,100 1,100
Other comprehensive income - - - (21) - (21)
Total comprehensive income - - - (21) 1,100 1,079
------------------------------------- ----- -------- -------- ------- --------- --------- --------
Transactions with owners
Equity dividend 8 - - - - (558) (558)
Credit to equity for equity-settled
Share based payments - - - 69 - 69
Shares to be issued 15 3 - - - 18
------------------------------------- ----- -------- -------- ------- --------- --------- --------
Total transactions with
owners 15 3 - 69 (558) (471)
------------------------------------- ----- -------- -------- ------- --------- --------- --------
At 31 August 2013 2,805 8,587 - 3,946 16,026 31,364
------------------------------------- ----- -------- -------- ------- --------- --------- --------
Year ended 28 February
2014
At 1 March 2013 2,790 8,584 - 3,898 15,484 30,756
Comprehensive income
Profit for the year - - - - 1,698 1,698
Other comprehensive income - - - - (42) (42)
Total comprehensive income - - - - 1,656 1,656
------------------------------------- ----- -------- -------- ------- --------- --------- --------
Transactions with owners
Equity dividend 8 - - - - (558) (558)
Credit to equity for equity-settled
Share based payments - - - 243 - 243
Transfer on exercise of
options - - - (116) 116 -
Issue of shares 15 3 - - - 18
Total transactions with
owners 15 3 - 127 (442) (297)
------------------------------------- ----- -------- -------- ------- --------- --------- --------
At 28 February 2014 2,805 8,587 - 4,025 16,698 32,115
------------------------------------- ----- -------- -------- ------- --------- --------- --------
Consolidated balance sheet
at 31 August 2014
31 August 31 August 28 February
2014 2013 2014
(unaudited) (unaudited) (audited)
Notes GBP000 GBP000 GBP000
------------------------------------------------------ ------------ ------------ ------------
Assets
Non-current assets
Intangible assets - goodwill 24,801 24,801 24,801
Other intangible assets 6 1,268 1,008 1,138
Property, plant and equipment 7 1,938 2,149 1,950
Deferred tax asset 230 233 230
------------------------------------------------------ ------------ ------------ ------------
28,237 28,191 28,119
------------------------------------------------------ ------------ ------------ ------------
Current assets
Inventories 439 226 236
Trade and other receivables 5,376 5,449 5,311
Cash and cash equivalents 1,902 2,217 3,094
------------------------------------------------------ ------------ ------------ ------------
7,717 7,892 8,641
------------------------------------------------------ ------------ ------------ ------------
Total assets 35,954 36,083 36,760
------------------------------------------------------ ------------ ------------ ------------
Liabilities
Current liabilities
Borrowings (147) (190) (194)
Trade and other payables (3,544) (3,478) (3,590)
Current tax liabilities (584) (704) (637)
Provisions for liabilities (34) (46) (34)
(4,309) (4,418) (4,455)
------------------------------------------------------ ------------ ------------ ------------
Non-current liabilities
Borrowings (42) (189) (91)
Provisions for liabilities (86) (112) (99)
Total liabilities (4,437) (4,719) (4,645)
------------------------------------------------------ ------------ ------------ ------------
Net assets 31,517 31,364 32,115
------------------------------------------------------ ------------ ------------ ------------
Equity
Share capital 9 2,813 2,805 2,805
Share premium 8,587 8,587 8,587
Own shares 10 (379) - -
Other reserves 4,045 3,946 4,025
Retained earnings 16,451 16,026 16,698
------------------------------------------------------ ------------ ------------ ------------
Total equity - attributable to equity shareholders
of the company 31,517 31,364 32,115
------------------------------------------------------ ------------ ------------ ------------
Consolidated statements of cash flows
for the half-year ended 31 August 2014
Half-year Half-year Year
Ended ended ended
31 August 31 August 28 February
2014 2013 2014
(unaudited) (unaudited) (audited)
Notes GBP000 GBP000 GBP000
-------------------------------------------- ------ ------------ ------------ ------------
Operating activities
Cash flow from operations 12 791 1,158 2,932
Interest paid (5) (10) (18)
Tax paid (242) (312) (633)
-------------------------------------------- ------ ------------ ------------ ------------
Net cash inflow from operating activities 544 836 2,281
-------------------------------------------- ------ ------------ ------------ ------------
Investing activities
Development of software (271) (320) (563)
Purchase of property, plant and equipment (313) (344) (527)
Disposal of subsidiary 11 (22) - -
Sale of property, plant and equipment - 46 29
Net cash used in investing activities (606) (618) (1,061)
-------------------------------------------- ------ ------------ ------------ ------------
Financing activities
Dividends paid 8 (663) (558) (558)
Purchase of own shares (379) - -
Repayment of borrowings (96) (82) (186)
Proceeds on issue of shares 8 18 18
Net cash outflow from financing activities (1,130) (622) (726)
-------------------------------------------- ------ ------------ ------------ ------------
(Decrease)/increase in cash and cash
equivalents (1,192) (404) 494
Cash and cash equivalents at beginning
of period 3,094 2,642 2,642
Effect of foreign exchange rate changes - -(21) (42)
-------------------------------------------- ------ ------------ ------------ ------------
Cash and cash equivalents at end of
period 1,902 2,217 3,094
-------------------------------------------- ------ ------------ ------------ ------------
Notes to the financial information
for the half-year ended 31 August 2014
1. Basis of preparation
This consolidated half-yearly financial information, which is
condensed and unaudited for the half-year ended 31 August 2014, has
been prepared in accordance with the accounting policies which the
group expects to adopt in its next annual report and is consistent
with those adopted in the consolidated financial statements for the
year ended 28 February 2014. These accounting policies are based on
the EU-adopted International Financial Reporting Standards ("IFRS")
and International Financial Reporting Interpretations Committee
("IFRIC") interpretations that the group expects to be applicable
at that time. This consolidated half-yearly information for the
half-year ended 31 August 2014 has been prepared in accordance with
IAS 34: Interim Financial Reporting, as adopted by the EU and under
the historical cost convention.
The information relating to the half-years ended 31 August 2014
and 31 August 2013 is unaudited and does not constitute statutory
financial statements as defined in section 434 of the Companies Act
2006. It has, however, been reviewed by the auditors and their
report is set out at the end of this document. The comparative
figures for the year ended 28 February 2014 have been extracted
from the consolidated financial statements, on which the auditors
gave an unqualified opinion and did not include a statement under
section 498 (2) or (3) of the Companies Act 2006. The annual report
and accounts for the year ended 28 February 2014 has been filed
with the Registrar of Companies.
The group's financial risk management objectives and policies
are consistent with those disclosed in the 2014 annual report and
accounts.
The half-yearly report was approved by the board of directors on
17 November 2013. The half-yearly report is available on Tangent's
website, www.tangentplc.com, and is being sent to shareholders.
Further copies are available at Tangent's registered office, 84-86
Great Portland Street, London W1W 7NR.
Going concern
The directors are satisfied that the group has sufficient
resources to continue in operation for the foreseeable future, a
period of not less than 12 months from the date of this report.
Accordingly, they continue to adopt the going concern basis in
preparing the financial statements.
2. Non-recurring Expenses
Reduced budgets at two key clients and the divestment of our
Australian business impacted revenues at Tangent Snowball. As a
result staff levels were reduced, the total cost of which amounted
to GBP226,000 and has been included in non-recurring expenses.
3. Operating segments
Management has determined the operating segments based on
reports reviewed by the Board of Directors that are used to make
strategic decisions. The board reviews revenues and operating
profits by segment but assets at a consolidated level. On this
basis the group has two reportable segments, Agency and Online.
Unallocated corporate expenses are shown below under PLC.
Agency - Comprises Tangent Snowball and T/OD (Tangent on
Demand).
Online - Comprises Ravensworth, printed.com and goodprint.
PLC - PLC costs relate to the cost of non-executive directors,
maintenance of Tangent's stock market listing, and general
professional advice together with the share-based payment charge as
set out in note 4. Executive directors' costs are allocated to the
Agency and Online segments.
Agency Online PLC Total
GBP000 GBP000 GBP000 GBP000
-------------------------------------------------- -------- -------- -------- --------
Half-year ended 31 August 2014
Revenue 4,550 9,032 - 13,582
Less inter segment sales (130) (196) - (326)
-------------------------------------------------- -------- -------- -------- --------
Revenue from external customers 4,420 8,836 - 13,256
-------------------------------------------------- -------- -------- -------- --------
Results
Underlying operating profit 158 1,034 (234) 958
Non-recurring expense (226) -- - (226)
-------------------------------------------------- -------- -------- -------- --------
Operating profit (68) 1,034 (234) 732
Finance cost - (5) - (5)
-------------------------------------------------- -------- -------- -------- --------
Profit before tax (68) 1,029 (234) 727
Tax (189)
Loss for the period from discontinued operations (122)
--------
Profit for the period after tax and discontinued
operations 416
--------
3. Operating segments (continued)
Agency Online PLC Total
GBP000 GBP000 GBP000 GBP000
Half-year ended 31 August 2013
Revenue 5,409 8,262 - 13,671
Less inter segment sales (106) (313) - (419)
-------------------------------------------------- -------- -------- -------- --------
Revenue from external customers 5,303 7,949 - 13,252
-------------------------------------------------- -------- -------- -------- --------
Results
Underlying operating profit 671 1,082 (241) 1,512
Operating profit 671 1,082 (241) 1,512
Finance cost - (10) - (10)
-------------------------------------------------- -------- -------- -------- --------
Profit before tax from continuing operations 671 1,072 (241) 1,502
Tax (357)
Loss for the period from discontinued operations (45)
--------
Profit for the period after tax and discontinued
operations 1,100
--------
Year ended 28 February 2014
Revenue 10,786 16,488 - 27,274
Less inter segment sales (223) (548) - (771)
-------------------------------------------------- -------- -------- -------- --------
Revenue from external customers 10,563 15,940 - 26,503
-------------------------------------------------- -------- -------- -------- --------
Results
Underlying operating profit 1,209 1,801 (510) 2,500
Non-recurring expense (131) - - (131)
-------------------------------------------------- -------- -------- -------- --------
Operating profit 1,078 1,801 (510) 2,369
Finance cost - (18) - (18)
-------------------------------------------------- -------- -------- -------- --------
Profit before 1,078 1,783 (510) 2,351
Tax (628)
Loss for the period from discontinued operations (25)
--------
Profit for the period after tax and discontinued
operations 1,698
--------
4. Share options and share-based payment charge
The total share-based payment charge for the period was
GBP10,000 (half-year ended 31 August 2013: GBP69,000 and year ended
28 February 2014: GBP183,000).
The movements in share options and the corresponding weighted
average exercise prices ("WAEP") are summarised below:
Number WAEP
000 Pence
------------------- ------- -------
At 1 March 2014 28,868 2.22
Exercised at 1p (848) (0.03)
Lapsed (173) (0.04)
At 31 August 2014 27,847 1.84
------------------- ------- -------
For the share options outstanding at 31 August 2014 exercise
prices ranged between nil and 13.25p per share and the weighted
average remaining contractual life was 5.37 years.
5. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following:
Half-year Half-year Year
ended Ended ended
31 August 31 August 28 February
2014 2013 2014
GBP000 GBP000 GBP000
Profit from continuing operations attributable
to shareholders 538 1,145 1,723
Loss from discontinued operations attributable
to shareholders (122) (45) (25)
------------------------------------------------ ---------- ---------- ------------
Profit attributable to shareholders 416 1,100 1,698
------------------------------------------------ ---------- ---------- ------------
Number Number Number
000 000 000
------------------------------------ -------- -------- --------
Weighted average number of shares:
For basic earnings per share 280,027 277,806 278,341
Adjustment for options outstanding 8,970 5,425 8,902
For diluted earnings per share 288,997 283,231 287,243
------------------------------------ -------- -------- --------
Pence Pence Pence
per share per share per share
--------------------- ---------- ---------- ----------
Earnings per share:
Basic (pence)
From continuing
operations 0.19 0.41 0.62
From discontinued
operations (0.04) (0.01) (0.01)
From profit for
the year 0.15 0.40 0.61
Diluted
From continuing
operations 0.19 0.40 0.60
From discontinued
operations (0.04) (0.01) (0.01)
From profit for
the year 0.15 0.39 0.59
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares.
A calculation is performed for the share options to determine
the number of shares that could have been acquired at fair value
based on the monetary value of the subscription rights attached to
the outstanding share options. The number of shares from this
calculation is compared with the number of shares that would have
been issued assuming the exercise of the options and the difference
is deemed to be the number of dilutive shares attributable to share
options.
6. Other intangible assets
During the period the group spent GBP271,000 (2013: GBP320,000)
on software to support the growth in on line revenues by expanding
the number of products available on the company's websites. During
the period amortisation charges of GBP141,000 were recognised in
respect of these assets.
7. Property, plant and equipment
During the period the group spent GBP202,000 on additions to
plant, equipment and computers to upgrade production facilities
with a further GBP111,000 on improvements to leasehold
property.
8. Dividends
Amounts recognised as distributions to equity holders in the
period:
Half-year Half-year Year
Ended ended ended
31 August 31 August 28 February
2014 2013 2014
GBP000 GBP000 GBP000
----------------------------------------- ----------- ---------- ------------
Dividend for the year ended 28 February
2013 of 0.2p per share - 558 558
Dividend for the year ended 28 February
2014 of 0.2p per share 663 - -
----------------------------------------- ----------- ---------- ------------
8. Dividends (continued)
The Tangent employee share ownership trust holds 928,340 shares
and has waived its right to receive dividends. The dividend for the
year ended 28 February 2014 was approved by shareholders at the
annual general meeting on 24 June 2014 and paid on 4 August
2014.
9. Share capital
Allotted and fully paid
Number of ordinary 1p shares
31 August 31 August 28 February
2014 2013 2014
000 000 000
Brought forward 280,313 278,813 278,813
Issued in the period 848 1,500 1,500
---------------------- ---------- ---------- ------------
Carried forward 281,161 280,313 280,313
---------------------- ---------- ---------- ------------
Nominal value
31 August 31 August 28 February
2014 2013 2014
GBP000 GBP000 GBP000
Brought forward 2,805 2,790 2,790
Issued in the period 8 15 15
---------------------- ---------- ---------- ------------
Carried forward 2,813 2,805 2,805
---------------------- ---------- ---------- ------------
10. Own Shares
31 August 31 August 28 February
2014 2013 2014
GBP000 GBP000 GBP000
Brought forward - - -
Acquired in the period 379 - -
----------------------- ---------- ---------- ------------
Carried forward 379 - -
----------------------- ---------- ---------- ------------
The own shares reserve represents the cost of shares in Tangent
Communications PLC purchased in the market and held by the Company.
The number of shares held at 31 August 2014 was 3,945,000 (31
August 2013 and 28 February 2014 nil).
11. Disposal of subsidiary
On 12 March 2014 Tangent completed the disposal of 81% of the
issued share capital in Tangent Snowball PTY Limited. It is the
group's intention to retain the remaining 19% the cost of which has
been reclassified under investments and amounts to less than
GBP1,000. The results of Tangent Snowball PTY Limited have not been
included in the consolidated statement of comprehensive income for
the period to 31 August 2014 and the net assets of the subsidiary
as at 1 March 2014, the date from which control changed were as
follows:-
28 February
2014
GBP000
Property, plant and equipment 5
Trade receivables 71
Bank and cash balances 22
Trade payables (41)
--------------------------------- ------------
57
Loss on disposal (57)
--------------------------------- ------------
Total consideration -
--------------------------------- ------------
Cash and cash equivalents disposed of (22)
----------------------------------------- -----
11. Disposal of subsidiary (continued)
The loss from discontinued operations was composed as
follows:-
Half-year Half-year Year
ended Ended ended
31 August 31 August 28 February
2014 2013 2014
GBP000 GBP000 GBP000
Loss on disposal of subsidiary (57) - -
Fees and expenses attributable to disposal (65) - -
Trading losses attributable to discontinued
operations - (45) (25)
Loss attributable to discontinued operations (122) (45) (25)
---------------------------------------------- ---------- ---------- ------------
12. Cash flow from operations
Half-year Half-year Year
Ended ended Ended
31 August 31 August 28 February
2014 2013 2014
GBP000 GBP000 GBP000
---------------------------------------------- ---------- ---------- ------------
Profit for the period 416 1,100 1,698
Income tax expense 189 357 628
Depreciation and amortisation of non-current
assets 461 444 953
Profit on sale of plant and equipment - (16) (17)
Loss on disposal of discontinued activities 57 - -
Net interest charge 5 10 18
Share-based payment charge 20 69 183
---------------------------------------------- ---------- ---------- ------------
1,148 1,964 3,463
Movements in working capital
(Increase) / decrease in inventories (203) 1 (9)
Increase in trade and other receivables (136) (251) (113)
Decrease in trade and other payables and
provisions (18) (556) (409)
Cash generated from operations 791 1,158 2,932
---------------------------------------------- ---------- ---------- ------------
13. Analysis of net funds
1 March Cash 31 August
2014 flows 2014
GBP000 GBP000 GBP000
------------------ -------- -------- ----------
Cash at bank and
in hand 3,094 (1,192) 1,902
Finance leases (285) 96 (189)
------------------ -------- -------- ----------
Net cash 2,809 (1,096) 1,713
------------------ -------- -------- ----------
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
half-year ended 31 August 2014 which comprises the consolidated
statement of comprehensive income, consolidated statement of
changes in equity, consolidated balance sheet, consolidated
statement of cash flows and related notes. We have read the other
information contained in the half-yearly financial report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the AIM Rules for Companies.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34: Interim
Financial Reporting, as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410: Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity, issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the half-year ended 31
August 2014 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the AIM Rules for Companies.
UHY Hacker Young
Chartered Accountants
Quadrant House
4 Thomas More Square
London E1W 1YW
17 November 2014
Notes
1. The maintenance and integrity of the Tangent Communications
PLC website is the responsibility of the directors; the work
carried out by the auditors does not involve consideration of these
matters and, accordingly, the auditors accept no responsibility for
any changes that may have occurred to the half-yearly report or the
auditors' review report since they were initially presented on the
website.
2. Legislation in the United Kingdom governing the preparation
and dissemination of financial information may differ from
legislation in other jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCQKODKFBDDFDD
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