REG - Redhall Group PLC - Interim Results

Thu Jun 14, 2012 2:00am EDT

* Reuters is not responsible for the content in this press release.

RNS Number : 3266F
Redhall Group PLC
14 June 2012
 



For Immediate Release

14 June 2012

 

 

Redhall Group plc

("Redhall" or the "Group")

 

Interim Results for the six months ended 31 March 2012

 

Redhall Group plc, the specialist engineering support services group, announces its interim results for the six months ended 31 March 2012.

 

FINANCIAL HIGHLIGHTS

 

·    

Revenue of £59.9m (H1 2011: Adjusted £52.4m)

·    

Adjusted operating profit of £1.6m (H1 2011: £1.2m)

·    

Adjusted profit before tax of £1.3m (H1 2011: £1.0m)

·    

Adjusted fully diluted earnings per share 3.4p (H1 2011: 2.4p)

·    

Net Debt £10.5m (H1 2011: £10.8m)

·    

Order book at £103m (H1 2011: £101m)

 

OPERATIONAL HIGHLIGHTS

 

·    

Commercial and operational management strengthened including the appointment of CEO, Richard Shuttleworth

·    

Major new nuclear project with Sellafield Limited worth £3.2m

-     Strong performance from Nuclear with scope for margin improvement

·    

£25m, five year contract for Huntsman

·    

Vivergo dispute continues, but expectations remain unchanged

 

David Jackson, Chairman & Chief Executive of Redhall, commented:

 

 "We are pleased to be showing improvement on last year's results; however, I firmly believe that the Group still has potential for further progression. We are delighted to have recruited Richard Shuttleworth as Group Chief Executive. His extensive industry knowledge and experience will be invaluable to Redhall".

 

 

For more information please contact:

 

Redhall Group plc

David Jackson, Chairman & Chief Executive

John O'Kane, Group Finance Director

 

Tel: Today on +44 (0) 20 7466 5000 and thereafter +44 (0)1924 385 386

Buchanan

Tel: +44 (0) 20 7466 5000

Tim Anderson / Sophie Cowles/James Strong

 


Canaccord Genuity Limited, Brokers

Tel: +44 (0)20 7523 8000

Robert Finlay / Ross Allister




Altium, Financial Advisers

Phil Adams / Simon Lord / Paul Lines

Tel : +44 (0) 845 505 4343



CHAIRMAN'S STATEMENT

 

Introduction

The result for the first half of the current financial year is an improvement on last year, but I believe the Group is capable of a much better performance.  We have strengthened our commercial and operational management over the last six months to address the issues that have affected our financial performance.  This team is further enhanced by the appointment of Richard Shuttleworth as our Group Chief Executive with effect from 1 September 2012 which we announced last week.  Richard has had a wealth of contracting experience in major businesses particularly during his time as Group Commercial Director of AMEC plc.

 

I am pleased to announce the award, subject to contract, of a major project working directly with Sellafield Limited in the high hazard area of the site.  This nuclear project is initially valued at £3.2 million and will commence in July 2012.  This is the first major award from Sellafield since the new management under Helen Simms took control of our Nuclear business at the beginning of last year.  With other opportunities currently available I am looking forward to a more productive chapter from our decommissioning and waste management activities.

 

Unfortunately the Vivergo contract dispute remains unresolved, although we are advised that the position we adopted at 30 September 2011 remains valid.

 

Trading Results

Revenue for the half year to 31 March 2012 amounted to £59.9 million, down on the comparative of £64.3 million although this did include £11.9 million of Vivergo turnover.  On a like-for-like basis, this shows a 14% improvement.  Adjusted profit before tax and amortisation was £1.34 million, up 33% on the comparative of £1.01 million.  Adjusted fully taxed diluted earnings per share at 3.4p was 42% ahead of the 2011 figure of 2.4p.

 

As stated in last year's annual report we are adopting a new segmental reporting system this year which reflects our new business structure and analyses our performance in Engineering, Nuclear and Manufacturing.   We will, for the sake of good order, make available on our website the previous segmental analysis of our first half performance.

 

Operating Review

Engineering

Engineering activity for the six months to 31 March 2012 reported revenue of £27.0 million up 9% on a 2011 comparative of £24.8 million (excluding Vivergo).  Adjusted operating profit stood at £744,000 (2.8% margin) compared to a 2011 figure of £805,000 (3.3% margin).  The decline in margin reflects the current competitiveness of the industry but this is anticipated to recover when the start of the nuclear new build programme impacts on the wider engineering market.

 

The significant contract signed in the period was the £25 million five year term contract for Huntsman which I referred to in last year's annual report when we had reached preferred contractor status.

 

 

 

Nuclear

Nuclear turnover in the first half was £18.1 million up 12% on the 2011 comparative of £16.2 million.  Adjusted operating profit was significantly higher at £624,000 compared to £35,000 last year although the first half of last year was an exceptional period due to the change of management.  An operating margin of 3.4% was achieved this year compared with 0.2% last year.  Margins are below the current management team's expectations due to the completion of contracts taken on prior to their arrival.  It is anticipated that our margin in nuclear contracting can be significantly improved.

 

Our work at both Aldermaston and Burghfield for AWE continues to perform well.  At Barrow we continue to work on the Astute class submarine programme for BAE Systems.  There are signs here that the quality of our work may lead to further opportunities with BAE.

 

Manufacturing

Manufacturing turnover stood at £14.8 million for the first half compared to £11.5 million in 2011, an increase of 29%.  Adjusted operating profit on this year's turnover stood at £1,353,000 (9.1% margin) compared to £1,379,000 (12.0% margin).  This year's margin is disappointing and relates to the subcontract production issues that we announced earlier.  These issues are now behind us and we hope shortly to return to more normal margins.

 

Our manufacturing activity at Booths in Bolton remains buoyant with strong demand from both the defence and oil and gas sectors.  R Blackett Charlton is returning to full production after a quiet spell due to increased activity in the offshore oil and gas sector.  Jordan Manufacturing in Bristol remains relatively quiet due to the continued lull in activity in the civil nuclear industry but this is anticipated to change markedly once we enter the nuclear new build phase.

 

Financial Position

Our cash-flow from operating activities was broadly neutral in the first half of this financial year compared with an outflow of £14.6 million in the first half of last year.  Net debt at £10.5 million compared with £10.2 million at 30 September 2011.  We anticipate an increase in working capital between now and our year-end of 30 September 2012 due to legal costs on the Vivergo dispute and an increase of work in progress due to high levels of shut-down activity by our clients in September.  Our bank facilities remain adequate for the foreseeable future.

 

Our tax rate for the current year is estimated to be 20% reflecting the use of losses in our engineering business brought forward from last year.

 

Vivergo

Our strategy of adjudication against Vivergo has resulted in further positive results which has strengthened the Board's view that we have adopted a reasonable position in our balance sheet.  However, these adjudications, whilst defining important principle decisions, have to date resulted in minimal cash awards.  We are surprised that Vivergo continues to adopt a defensive stance notwithstanding the adjudication verdicts.  While our preferred route is for a negotiated settlement, we are resigned to resolving this issue through the Courts, if necessary, and this process may take a number of months. 

 

 

 

 

Dividend

The Board has recommended that no interim dividend will be paid in 2012.  The dividend policy is regularly reviewed by the Board but it is unlikely that the dividend will resume until the Vivergo dispute is settled.

 

People

As announced on 7 June 2012 we have appointed Richard Shuttleworth as our new Chief Executive Officer with effect from 1 September 2012.  The recruitment for this position has been a lengthy process, but it was extremely important that we appointed the right person and I believe that we have found an individual with the right credentials for the job.  Richard spent 28 years with AMEC plc, rising to the position of Group Commercial Director and has, since then, run Cape's UK operation and the UK Division of Harsco Infrastructure, formerly known as SGB.  He is a qualified Quantity Surveyor and I am delighted to have a man with his experience and attention to detail running our Group.

 

For my part I will take the position of Non-Executive Chairman with effect from 1 October 2012.

 

Prospects

I remain comfortable with the short term prospects of the business and the award of the nuclear contract at Sellafield and the signing of the £25 million five year term contract with Huntsman, underline the reputation that we have with our major clients in the niche areas in which we work.  We await with interest the appointment by EDF of the civils contractor for Hinkley Point which will be the trigger for the commencement of the nuclear new build programme in the UK.  We remain well positioned for contract awards once the programme commences due to the strength of our joint offering with our French business partners.

 

Our order book stands at £103 million compared to £101 million at this time in 2011 which is satisfactory for current trading purposes.

 

 

David Jackson

Chairman and Chief Executive

14 June 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redhall Group plc

 

Consolidated Interim Income Statement

 

 


Note

Six months to 31 March 2012


Six months

to 31 March 2011


Year to

30 September 2011



£000


£000


£000








Revenue

2

59,909


64,324


117,759








Cost of sales


(49,537)


(55,069)


(105,664)








Gross profit


10,372


9,255


12,095








Administrative expenses


(9,091)


(8,755)


(19,718)








Operating profit/(loss)

2

1,281


500


(7,623)








Financial income

3

-


21


61

Financial expenses

3

(296)


(229)


(535)








Profit/(loss) before tax


985


292


(8,097)








Adjusted operating profit*


1,637


1,217


4,347








Net financial expenses


(296)


(208)


(474)








Adjusted PBTA*


1,341


1,009


3,873








Exceptional items


-


(361)


(11,254)

Amortisation of acquired intangible assets


(356)

 

 

(356)


(716)








Profit/(loss) before tax


985


292


(8,097)








Tax on profit/(loss) on ordinary activities

4

(197)


(82)


1,138








Profit/(loss) attributable to equity holders of the Parent Company


788


210


(6,959)








Earnings/(loss) per share

5






Basic


2.7p


0.7p


(23.5)p

Diluted


2.6p


0.7p


(23.5)p








 

*  Before exceptional items and amortisation of intangible assets acquired with business combinations.

 



Redhall Group plc

 

Consolidated Interim Statement of Comprehensive Income

 

 



Six months to 31 March 2012


Six months

to 31 March 2011


Year to

30 September 2011



£000


£000


£000








Profit/(loss) for the period


788


210


            (6,959)








Other comprehensive income







Actuarial gain on pension scheme


-


-


                483

Tax on actuarial gain


-


-


               (130)

Effect of tax rate change on actuarial gain


-


-


                 (15)

Deficit on revaluation of property held for sale


-


-


(107)

Tax on amortisation of property revaluation transferred between reserves


-


-


                  37

Effect of tax rate change on amortisation of property revaluation


-


-


                  31








Other comprehensive income for the period net of tax


-


-


                299

Total comprehensive income attributable to equity holders of the Parent Company


788


210


            (6,660)








 



Redhall Group plc

 

Consolidated Interim Balance Sheet

 

 



As at

31 March

2012


As at

31 March

2011


As at

30 September

2011



£000


£000


£000








Assets







Non-current assets







Property, plant and equipment


6,242


             6,282


             6,220

Intangible assets


6,048


             6,691


             6,343

Purchased goodwill


23,785


           23,785


           23,785



36,075


           36,758


           36,348








Current assets







Inventories


625


                644


                539

Trade and other receivables


42,777


           47,545


           40,857

Cash and cash equivalents


2,466


                    -


                    -

Current tax asset


185


                    -


                523



46,053


           48,189


           41,919








Assets held for sale


-


                248


                138








Liabilities







Current liabilities







Trade and other payables


(27,785)


          (25,173)


          (27,696)

Borrowings


-


               (799)


               (168)

Current tax payable


-


               (583)


                    -



(27,785)


          (26,555)


          (27,864)








Non-current liabilities







Borrowings


(13,000)


          (10,000)


          (10,000)

Deferred tax liabilities


(1,627)


            (2,129)


            (1,627)

Retirement benefit obligations


(1,403)


            (2,122)


            (1,480)



(16,030)


          (14,251)


          (13,107)















Net assets


38,313


           44,389


           37,434








Equity attributable to owners of the Parent Company







Share capital


7,462


7,404


             7,404

Share premium account


19,127


19,095


           19,095

Merger reserve


12,679


12,679


           12,679

Revaluation reserve


665


756


                665

Other reserve


304


395


                303

Retained earnings


(1,924)


4,060


            (2,712)








Total equity


38,313


44,389


           37,434

 



Redhall Group plc

 

Consolidated Interim Statement of Changes in Equity

 

 

Share capital

Share premium

Merger reserve

Revaluation reserve

Other reserve

Retained earnings

Total


£000

£000

£000

£000

£000

£000

£000









At 1 October 2010

7,404

19,095

12,679

756

341

4,739

45,014

Employee share-based

compensation

-

-

-

-

(38)

-

(38)

Tax in connection with employee share-based compensation






7

7

Dividends

-

-

-

-

-

(889)

(889)

Transactions with owners

-

-

-

-

(38)

(882)

(920)









Loss for the year

-

-

-

-

-

(6,959)

(6,959)

Transfer between reserves in respect of depreciation on property revaluations

-

-

-

(21)

-

21

-

Other comprehensive income for the year

-

-

-

(70)

-

369

299

Total comprehensive income for the year

-

-

-

(91)

-

(6,569)

(6,660)

At 30 September 2011

7,404

19,095

12,679

665

303

(2,712)

37,434

 

 

At 1 October 2010

7,404

19,095

12,679

756

341

4,739

45,014

Employee share-based compensation

-

-

-

-

54

-

54

Dividends

-

-

-

-

-

(889)

(889)

Transactions with owners

-

-

-

-

54

(889)

(835)









Profit for the period

-

-

-

-

-

210

210

Total comprehensive income for the period

-

-

-

-

-

210

210

At 31 March 2011

7,404

19,095

12,679

756

395

4,060

44,389

 

 

At 1 October 2011

7,404

19,095

12,679

665

303

(2,712)

37,434

Shares allotted under the 'A' executive share option scheme

58

32

-

-

-

-

90

Employee share-based compensation

-

-

-

-

1

-

1

Transactions with owners

58

32

-

1

-

91









Profit for the period

-

-

-

-

-

788

788

Total comprehensive income for the period

-

-

-

-

-

788

788

At 31 March 2012

7,462

19,127

12,679

665

304

(1,924)

38,313



Redhall Group plc

Consolidated Interim Cash Flow Statement


Note

Six months

to 31 March

2012


Six months

to 31 March

2011


Year to

30 September

2011



£000


£000


£000








Cash absorbed by operations

6

(7)


(14,622)


(12,973)

Interest paid


(231)


(199)


(398)

Income taxes (paid)/received


141


(135)


(593)

Net cash used in operating activities


(97)


(14,956)


(13,964)








Cash flows from investing activities







Purchase of property, plant and equipment


(417)


(374)


(730)

Purchase of intangible assets


(80)


(18)


(41)

Proceeds from sale of plant and equipment


138


9


15

Interest received


-


21


33

Net cash used in investing activities


(359)


(362)


                 (723)















Cash flows from financing activities







Proceeds from issue of share capital


90


-


-

Proceeds from borrowings


3,000


10,000


10,000

Repayment of borrowings


-


(3,875)


(3,875)

Dividends paid


-


(889)


(889)

Net cash generated by financing activities


3,090


5,236


5,236








Net increase/(decrease) in cash and cash equivalents


2,634


           (10,082)


(9,451)

Cash and cash equivalents at beginning of period


(168)


             9,283


9,283

Cash and cash equivalents at end of period


2,466


               (799)


(168)



Redhall Group plc

Notes to the Consolidated Interim Financial Statements

 

 

1.    Basis of preparation

These consolidated interim financial statements ("interim financial statements) are for the six months ended 31 March 2012 and do not constitute statutory accounts under sections 434 and 435 of the Companies Act 2006.  They do not include all of the information required for full annual financial statements.  The comparative figures for the financial year ended 30 September 2011 are not the Group's consolidated statutory accounts for that financial year.  Those accounts have been reported on by the Group's auditor and delivered to the Registrar of Companies.  The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under sections 498(2) or 498(3) of the Companies Act 2006.  These interim financial statements should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 September 2011.

These interim financial statements have been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU and under the historical cost convention, except for the revaluation of certain non-current assets and include fair values for share-based payments and the initial recognition of financial instruments.

These interim financial statements have been prepared in accordance with the accounting policies adopted in the latest consolidated financial statements for the year to 30 September 2011.  The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.

These interim financial statements have been reviewed, but not audited, by the Group's auditors.

 

2.    Segment analysis

Following the restructuring of the Group and of its operational management team as reported by the Chairman in the 2011 Annual Report and Accounts, the segmental reporting has been changed to reflect the new structure. 

The revised reporting represents how the Group operates now and in the future.  The 2011 comparatives have been restated.  The activities in each segment are as follows:

Nuclear

Nuclear comprises activities in both the civil and defence sectors and includes design, project management and execution of on-site works through qualified and experienced engineers and trades personnel.  Activities in the civil sector include decommissioning and waste management, support to operating nuclear power stations, and nuclear new build.  Activities in the defence sector encompass activities on behalf of the Ministry of Defence and include the marine outfitting of Astute class submarines at Barrow, West Cumbria, and the design and manufacture of specialist equipment and mechanical and electrical engineering activities for the AWE establishments at Aldermaston and Burghfield.

 

Engineering

Engineering comprises activities in industrial processes including oil and gas, petrochemical, chemical, pharmaceutical and food and includes design, project management and execution of on-site works through qualified and experienced engineers and trades personnel.  Activities include mechanical design and construction, storage tank services, plant modifications and upgrades, repair and maintenance, shutdown services and offsite services.

 

Manufacturing

Manufacturing encompasses the design, manufacture and installation of bespoke specialist plant and equipment typically in the nuclear, defence, oil and gas, petrochemical, chemical, pharmaceutical and food sectors.  The division has particular expertise in the design and manufacture of high integrity fire and blast resistant doors, window and wall systems.

 

Operating segments

The revenues and profit before tax generated by each of the Group's operating segments are summarised as follows:

 

 

2.    Segment analysis continued

 

Six months to 31 March 2012

 


Revenue


Adjusted operating profit


Acquired intangible asset amortisation


Group operating profit


£000


£000


£000


£000









Engineering

26,971


744


(175)


569

Vivergo contract

-


-


-


-

Exceptional items

-


-


-


-

Total Engineering

26,971


744


(175)


569









Nuclear

18,092


624


(105)


519

Exceptional items

-


-


-


-

Total Nuclear

18,092


624


(105)


519









Manufacturing

14,846


1,353


(76)


1,277

Exceptional items

-


-


-


-

Total Manufacturing

14,846


1,353


(76)


1,277









Central costs

-


(1,084)


-


(1,084)

Exceptional items

-


-


-


-

Total Central costs

-


(1,084)


-


(1,084)









Total operations before

Vivergo and exceptional items

59,909


1,637


(356)


1,281

Vivergo

-


-


-


-

Exceptional items

-


-


-


-

Total operations

59,909


1,637


(356)


1,281









Financial income



-


-


-

Financial expenses



(296)


-


(296)









Group profit before tax



1,341


(356)


985

Tax



(268)


71


(197)

Group profit for the year



1,073


(285)


788

 

 Adjusted operating profit is stated before amortisation of acquired intangible assets and exceptional items. 

 

 

 

2.    Segment analysis continued

Six months to 31 March 2011

 


Revenue


Adjusted operating profit


Acquired intangible asset amortisation


Group operating profit


£000


£000


£000


£000









Engineering

24,746


805


(175)


630

Vivergo contract

11,921


-


-


-

Exceptional items

-


-


-


-

Total Engineering

36,667


805


(175)


630









Nuclear

16,162


35


(105)


(70)

Exceptional items

-


(245)


-


(245)

Total Nuclear

16,162


(210)


(105)


(315)









Manufacturing

11,495


1,379


(76)


1,303

Exceptional items

-


-


-


-

Total Manufacturing

11,495


1,379


(76)


1,303









Central costs

-


(1,002)


-


(1,002)

Exceptional items

-


(116)


-


(116)

Total Central costs

-


(1,118)


-


(1,118)









Total operations before

Vivergo and exceptional items

52,403


1,217


(356)


861

Vivergo

11,921


-


-


-

Exceptional items

-


(361)


-


(361)

Total operations

64,324


856


(356)


500









Financial income



21


-


21

Financial expenses



(229)


-


(229)









Group profit before tax



648


(356)


292

Tax



(182)


100


(82)

Group profit for the year



466


(256)


210

 

Adjusted operating profit is stated before amortisation of acquired intangible assets and exceptional items.  Exceptional items relate largely to restructuring and redundancy costs.



 

2.    Segment analysis continued

Year to 30 September 2011


Revenue


Adjusted operating profit


Acquired intangible asset amortisation


Group operating profit


£000


£000


£000


£000









Engineering

51,698


1,264


(349)


915

Vivergo contract

15,252


-


-


-

Exceptional items

(7,538)


(9,038)


-


(9,038)

Total Engineering

59,412


(7,774)


(349)


(8,123)









Nuclear

32,966


1,493


(214)


1,279

Exceptional items

(1,182)


(1,682)


-


(1,682)

Total Nuclear

31,784


(189)


(214)


(403)









Manufacturing

26,648


3,798


(153)


3,645

Exceptional items

(85)


(85)


-


(85)

Total Manufacturing

26,563


3,713


(153)


3,560









Central costs

-


(2,208)


-


(2,208)

Exceptional items

-


(449)


-


(449)

Total Central costs

-


(2,657)


-


(2,657)









Total operations before

Vivergo and exceptional items

111,312


4,347


(716)


3,631

Vivergo

15,252


-


-


-

Exceptional items

(8,805)


(11,254)


-


(11,254)

Total operations

117,759


(6,907)


(716)


(7,623)









Financial income



61


-


61

Financial expenses



(535)


-


(535)









Group loss before tax



(7,381)


(716)


(8,097)

Tax



945


193


1,138

Group loss for the year



(6,436)


(523)


(6,959)

 

Adjusted operating profit is stated before amortisation of acquired intangible assets and exceptional items.  Exceptional items in the period relate to contract provisions and restructuring costs.

 

 

Geographical segments

 

The following table shows the distribution of the Group's consolidated revenue by geographical market, regardless of the origin of the goods or services. 


Six months

to 31 March

2012


Six months

to 31 March 2011


Year to

30 September 2011


£000


£000


£000







United Kingdom

57,633


56,473


111,690

Other European Union countries

601


6,209


1,619

Other overseas locations

1,675


1,642


4,450


59,909


64,324


117,759

 

3.    Financial income and expenses


Six months

to 31 March

2012


Six months

to 31 March 2011


Year to

30 September 2011


£000


£000


£000

Financial income






Interest income

-


21


61







Financial expenses






Interest on bank loans and overdrafts

(156)


(89)


(311)

Net finance expense on pension scheme*

(140)


(140)


(224)


(296)


(229)


(535)

* Includes £75,000 of pension administration expenses paid for by the Group (31 March 2011: £75,000; 30 September 2011: £150,000).

 

4.    Taxation

The charge for taxation has been based upon the estimated effective rate of tax of 20% (2011: 28%) for the current year. 

 

 

5.    Earnings per share

Basic earnings per share

The calculation of basic earnings per share of 2.7p (31 March 2011: 0.7p; 30 September 2011: loss per share (23.5p) is based on 29,730,033 shares (31 March 2011: 29,616,700; 30 September 2011: 29,616,700), being the weighted average number of shares in issue throughout the period and on earnings of £788,000, (31 March 2011: £210,000; 30 September 2010: loss of £(6,959,000)). 

 

Diluted earnings per share

The calculation of diluted earnings per share of 2.6p (31 March 2011: 0.7p) is based on a profit for the period of £788,000 because there were no adjustments required (31 March 2011: £210,000 because no adjustments were required) and on 29,801,548 ordinary shares (31 March 2011: 29,816,662) as calculated below.

The loss attributable to ordinary shareholders and weighted average number of ordinary shares for the purpose of calculating the diluted loss per share for the year ended 30 September 2011 are identical to those used for the basic loss per share.  This is because the exercise of share options would have the effect of reducing the loss per share and is, therefore, not a dilution under the terms of IAS33.

 

 

 

 


Six months

to 31 March 2012


Six months

to 31 March 2011


Year to

30 September 2011


£000


£000


£000

Earnings:






Profit/(loss) on ordinary activities after tax

788


210


(6,959)








Number


Number


Number

Basic weighted average number of shares

29,730,033


29,616,700


29,616,700

Dilutive potential ordinary shares arising from share options

71,515


199,962


-

Adjusted weighted average number of shares

29,801,548


29,816,662


29,616,700

 

 

5.         Earnings per share (continued)

 

 

Adjusted earnings per share

The Directors believe that helpful additional earnings per share calculations are earnings per share on adjusted bases.  The basic and adjusted weighted average numbers of shares and the adjusted earnings have been calculated as follows:

 


Six months

to 31 March

2012


Six months

to 31 March 2011


Year to

30 September 2011


£000


£000


£000

Basic weighted average number of shares

29,730,033


29,616,700


29,616,700

Dilutive potential ordinary shares arising from share options

71,515


199,962


174,285

Adjusted weighted average number of shares

29,801,548


29,816,662


29,790,985







Earnings:






Profit/(loss) on ordinary activities before tax

985


292


(8,097)

Exceptional items

-


361


11,254

Amortisation of acquired intangible assets

356


356


716

Adjusted profit before tax

1,341


1,009


3,873

Tax at 25% (2011: 28% and 27%)

(335)


(282)


(1,046)

Adjusted profit after tax

1,006


727


2,827

Adjusted fully taxed basic earnings per share

3.4p


2.5p


9.6p

Adjusted fully taxed diluted earnings per share

3.4p


2.4p


9.5p

 

 

 

6.    Cash flow from operating activities



Six months

to 31 March

2012


Six months

to 31 March

2011


Year to

30 September

2011



£000


£000


£000

Profit/(loss) after taxation


788


210


(6,959)

Adjustments for:







Depreciation


395


                438


850

Amortisation of intangible assets


375


                372


743

Difference between pension charge and cash contributions


(142)


               (153)


(321)

Profit on sale of property, plant and equipment


-


                  (2)


(2)

Share based payments charge/(credit)


1


                 54


(38)

Financial income


-


                (21)


(61)

Financial expenses


296


229


535

Taxation expense/(credit) recognised in income statement


197


82


(1,138)

Increase in trade and other receivables


(1,920)


            (9,244)


(2,556)

(Increase)/decrease in inventories


(86)


                (92)


13

Increase/(decrease) in trade and other payables


89


            (6,495)


(4,039)








Cash absorbed by operations before exceptional items


(7)


 

(14,622)


(12,973)

 

 

7.    Dividends on equity shares

Amounts recognised as distributions to equity holders in the period:


Six months

to 31 March

2012


Six months

to 31 March

2011


Year to

30 September

2011


£000


£000


£000

Final dividend for the year ended 30 September 2010 (3.00p per share)

-


889


889

Amount recognised as distribution to equity holders in the period

-


889


889

 

The Directors do not propose the payment of an interim dividend for the six months ended 31 March 2012.

 

 

 

8.    Distribution of interim report

Copies of this interim report are being sent to shareholders and are available from the Company Secretary, Redhall Group plc, 1 Red Hall Court, Wakefield, WF1 2UN

Independent review report to Redhall Group plc

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly report for the six months ended 31 March 2012 which comprises the consolidated interim income statement, the consolidated interim statement of comprehensive income, the consolidated interim statement of changes in equity, the consolidated interim balance sheet, the consolidated interim cash flow statement and the related explanatory notes. We have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

 

Directors' responsibilities

The half-yearly report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly report in accordance with the AIM Rules.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly report has been prepared in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU.

 

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly 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 UK. 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 report for the six months ended 31 March 2012 is not prepared, in all material respects, in accordance with the recognition and measurement requirements of IFRSs as adopted by the EU and the AIM Rules.

David Morritt for and on behalf of KPMG Audit Plc

Chartered Accountants

1 The Embankment

Neville Street

Leeds

14 June 2012


This information is provided by RNS
The company news service from the London Stock Exchange
 
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