TIDMABDP
RNS Number : 7601U
AB Dynamics PLC
27 November 2019
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER
THE EU MARKET ABUSE REGULATION (596/2014). UPON THE PUBLICATION OF
THE ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.
27 November 2019
AB Dynamics plc
Final Results for the Year Ended 31 August 2019
"Strong growth and delivery against strategic priorities"
AB Dynamics plc ("AB Dynamics", the "Company" or the "Group"),
the designer, manufacturer and supplier of advanced testing systems
and measurement products to the global automotive market, is
pleased to announce its final results for the year ended 31 August
2019.
Audited Audited
2019 2018
GBPm GBPm
Revenue 58.0 37.1 +56%
Adjusted operating profit(1) 13.5 8.5 +58%
Adjusted operating margin 23.3% 23.1% +20 bps
Adjusted profit before
tax(1) 13.7 8.6 +59%
Statutory operating profit 10.8 7.9 +37%
Statutory profit before
tax 11.0 7.9 +38%
Statutory profit after
tax 9.6 7.0 +38%
Adjusted cash flow from
operations(1) 10.5 9.9 +6%
Net cash 36.2 15.9 +127%
------------------------------ -------- -------- --------
Pence Pence
Adjusted diluted earnings
per share(1) 55.4 36.9 +50%
Basic earnings per share 42.9 36.3 +18%
Fully diluted earnings
per share 42.1 35.0 +20%
Total dividend per share 4.40 3.67 +20%
------------------------------ -------- -------- --------
(1) Before acquisition related charges, agent termination fees and share based payment charges. A reconciliation to statutory measures is given in the Financial Review.
Financial Highlights
-- Revenue and adjusted operating profit increased 56% and 58%,
respectively through increased demand for the Group's products and
services, supported by new product development and establishment of
international routes to market.
-- Underlying revenues increased by 55% with a small 1% benefit
from the acquisition of rFpro at the end of June 2019.
-- Adjusted operating margins increased by 20 bps to 23.3% as a
result of operating leverage across the business.
-- Adjusted profit before tax increased by 59% to GBP13.7m and
the corresponding adjusted diluted EPS increased by 50% as the
adjusted effective corporation tax rate increased to 16.8% (2018:
14.1%).
-- Adjusted cash flow from operations increased by 6% to
GBP10.5m with cash conversion of 78% after investment in working
capital.
-- Total dividend increased by 20% to 4.40p per share as a
result of a strong performance and confidence in the Group's
outlook.
Operational Highlights
-- Introduction of updated strategic priorities setting out the
Group's plans for long term, sustainable growth
-- Establishment of new international routes to market in the USA and Japan.
-- In Track Testing, the launch of additional new products
including Ground Traffic Control software for proving ground
automation, TrackFi Powermesh advanced radio system and heavy-duty
versions of both the Guided Soft Target and Launchpad ADAS
targets.
-- In Laboratory Testing and Simulation, the Group has further
developed the aVDS simulation market with key strategic sales and
development of increased product functionality whilst launching the
new ANVH 250 product line.
-- Construction commenced on a new 2,850m(2) facility for new
product development and simulation.
-- Following a successful share placing in May 2019, raising net
proceeds of GBP48.2m, acquisition expenditure totalled GBP35.4m
with GBP18.1m on rFpro and GBP17.3m on Dynamic Research Inc.
Commenting on the full year results, Dr James Routh, Chief
Executive Officer said:
"The Group's performance in 2019 was very strong, delivered
through continued development of new products and services to a
buoyant market for Advanced Driver Assistance Systems and
autonomous vehicle development. AB Dynamics delivered another year
of strong growth in adjusted earnings per share whilst
simultaneously initiating the delivery of the Group's updated
strategic priorities, including the acquisitions delivered during
the second half. Despite global macro-economic uncertainty and
challenges facing the automotive sector, the Board remains
confident that the Group will continue to deliver further growth in
the coming year."
Enquiries:
AB Dynamics plc 01225 860 200
Tony Best, Chairman
Dr James Routh, Chief Executive Officer
Sarah Matthews-DeMers, Chief Financial Officer
Mat Hubbard, Chief Technology Officer
Cairn Financial Advisers (Nomad) 0207 213 0880
Tony Rawlinson
Liam Murray
Ludovico Lazzaretti
Cantor Fitzgerald Europe (Broker) 0207 894 7000
Phil Davies, David Foreman (Corporate Finance)
Caspar Shand Kydd, Keith Dowsing, Arthur Gordon
(Equity Sales)
Tulchan Communications 0207 353 4200
James Macey White
Matt Low
Deborah Roney
About AB Dynamics plc
AB Dynamics is a leading designer, manufacturer and provider of
advanced products for testing and verification of Advanced Driver
Assistance Systems ("ADAS") technology, autonomous vehicle
development and vehicle dynamics to the global automotive research
and development sector.
AB Dynamics is an international group of companies headquartered
in Bradford-on-Avon. AB Dynamics currently supplies all the top
automotive manufacturers, Tier 1 suppliers and service providers,
who routinely use the Group's products to test and verify vehicle
safety systems and dynamics.
PRELIMINARY ANNOUNCEMENT OF FINAL RESULTS FOR YEARED 31 AUGUST
2019
CHAIRMAN'S STATEMENT
Overview
I am pleased to report that the Group has delivered its tenth
successive year of record revenue and adjusted profit reflecting
continued strong demand for our advanced testing systems and
measurement equipment. During the year the Group experienced a very
favourable market background and reported revenues grew 56% to
GBP58m and adjusted operating profit grew 58% to GBP13.5m. The
outturn also benefited from our success in reducing our lead times,
which had lengthened with strong levels of demand, to more
appropriate levels. We operate in markets that benefit from
long-term structural and regulatory growth drivers, and against
this positive backdrop our customers continue to develop ever more
sophisticated Advanced Driver Assistance Systems and semi and fully
autonomous vehicles that will be required in the future. The
results are discussed in detail in the Chief Executives Review and
in the Financial Review that follow.
In May 2019, the Group raised gross proceeds of GBP50.1m through
a Placing of GBP45.1m, followed in June 2019 by the closing of an
Open Offer of GBP5m, both of which were oversubscribed. We were
delighted by the response from existing and also new investors whom
we were pleased to welcome to the Shareholder Register. At the time
the Board signalled its intention to use the net proceeds from the
fundraise to support the Group's strategy, updated earlier in the
year. The refreshed strategy, under the leadership of our CEO, has
brought added focus to our new product development, our capability
and capacity requirements to meet future growth, our international
footprint, service and support functions, and opportunities for
acquisitive growth.
Following the capital raise, the opportunity arose to acquire
two complementary and attractive businesses with whom we had
previously worked very closely for a number of years. In June 2019,
we were pleased to announce the acquisition of rFpro, Kangaloosh
Limited, for a maximum consideration of up to GBP21.6m and at the
end of August 2019 the purchase of Dynamic Research Incorporated
('DRI') for a maximum consideration of up to US$24.5m. Both
businesses are firmly aligned to our acquisition criteria, with
rFpro adding important engineering grade simulation software and
highly accurate digital replicas of public roads, test tracks and
racing circuits, and DRI who are experts in testing ADAS and
vehicle dynamics, alongside the manufacture of a range of products
for use in ADAS testing. I have much pleasure in welcoming the
staff of both organisations to AB Dynamics.
International footprint and manufacturing facilities
We continue to invest in our manufacturing capacity and
international footprint, our capabilities and our people. During
the year we commenced operations from new facilities in Germany and
the USA and as part of our international expansion we intend to
establish Group operations in other key markets, including Japan
where we are currently transitioning activities inhouse.
As we have previously announced the Group has now received full
planning permission for a new 2,850m(2) facility adjacent to our
existing headquarters in Bradford-on-Avon that will be used as a
simulation centre of excellence and for engineering research and
development. Ground work has begun with completion expected in Q4
2020. In addition, the Board has approved the consolidation of
activities currently located in a number of smaller locations into
a single operational site. The Group has purchased a 2.5 acre site
on the outskirts of Melksham, approximately 5 miles from our main
operations, on which we plan to build a new production facility.
Building work is expected to commence in FY2021 and will take
approximately 12 months to complete.
Board changes
Dr. James Routh joined the Group on 1 October 2018 as Chief
Executive Officer. James has brought strong leadership and a wealth
of relevant experience to the Group and it has been a great
pleasure to welcome him to AB Dynamics and the Board.
On 13 February 2019 it was announced that Robert Hart had
informed the Group of his intention to step down from his role as
Chief Financial Officer and from the Board after ten years with AB
Dynamics. I would like to thank Rob for his contribution to the
success of the Group over the years up to and since our AIM IPO in
2013. As previously announced, Sarah Matthews-DeMers has been
appointed as Chief Financial Officer with effect from 4 November
2019. Sarah brings extensive experience of financial management in
public companies, investor relations and strategic development and
I am delighted she has joined AB Dynamics.
Bryan Smart has also informed the Board of his intention to step
down from his position as Chairman of the Audit and Risk Committee
and retire from the Board at the AGM in January 2020. I would like
to thank Bryan for his support and contribution to the development
of the Group over the years since our flotation. The Board has
begun the search for a suitable replacement and has also taken the
decision to look to appoint a Non-Executive Director with relevant
industry experience.
I would also like to thank each of our Non-Executive Directors
for their continued wise counsel and contribution to the success of
the Group during the year.
Corporate governance
The Board is united in its view that robust corporate governance
and risk management are essential to maintaining the stability and
growth of the Group and its financial health. I am pleased to
confirm that AB Dynamics has adopted the Quoted Companies Alliance
('QCA') code and a statement of compliance is set out on our AIM
Rule 26 website. Further details of the Group's approach to
governance and its procedures are included in the Annual Report for
the year ended 31 August 2019.
Our employees
I would like to thank all our employees for their continued hard
work and professionalism over a very busy year. At its heart AB
Dynamics is a people business and it is the contribution and
performance of our talented employees that underpins our undoubted
achievements. As we have grown, we have welcomed a significant
number of new staff to the Group and we now have 264 employees
(FY2018: 145), including employees of rFpro and DRI. I am pleased
to say that we continue to attract the talent that we require to
develop the increasingly complex new products that will be demanded
by both our long standing and newly emerging customers.
Dividend
The Board is recommending a final dividend of 2.79p per share
payable on 13 February 2020 subject to shareholder approval at the
AGM. The ex-dividend date will be 2 January 2020 and the record
date will be 3 January 2020. The total dividend for the year will
therefore be 4.40p per share which is an increase over the prior
year of 20%. The Board expects to continue to pursue a progressive
dividend policy in the future.
Outlook
AB Dynamics operates in long-term growth markets and has
established a unique position as a leading designer, manufacturer
and supplier of advanced testing and simulation solutions to the
automotive industry globally. We continue to invest heavily into
new product development that is critical to our future success and
it is particularly pleasing therefore to report that we have now
received a third order for our advanced Vehicle Driving Simulator
('aVDS'). We expect simulation to play an increasingly important
and critical part in the development of semi and fully autonomous
vehicles in the future as manufacturers will need to evaluate their
vehicles extensively under large numbers of complex scenarios to
provide a safe environment for all road users.
As in previous years, we have a healthy order book that provides
good forward visibility and will continue to invest in our
capabilities and infrastructure which will tend to constrain our
margins. Whilst we remain optimistic about our prospects and the
Group's future, we do remain alert to the continued difficulties
faced by many of our customers selling into the global automotive
market.
CHIEF EXECUTIVE'S REVIEW
Overview
AB Dynamics has delivered a record year of highly profitable
growth whilst implementing its recently announced evolved strategy
for long-term sustainable growth. The Group has continued to
develop and launch new products to meet the rapidly changing market
conditions in the test and verification of both conventional and
autonomous vehicle development. In parallel the Group has enhanced
its capabilities and capacities to support the current and
anticipated growth.
Financial performance
In 2019, the Group delivered strong reported revenue growth of
56% to GBP58.0m (2018: GBP37.1m) and the acquisition of rFpro
towards the end of the year contributed 1%, with underlying revenue
growth of 55%.
Group adjusted operating profit increased 58% to GBP13.5m (2018:
GBP8.5m) resulting in an improvement in adjusted operating margins
of 20 bps to 23.3% (2018: 23.1%). This is in line with guidance
provided at the half year detailing our planned increase in
operating costs to support our growth strategy.
Gross margins have increased by 100 bps to 48.2% due to growth
in relatively higher margin track testing sales compared to the
prior year comparative. During the second half of the year, the
Group implemented planned operating cost increases to invest in
product development, the establishment of both US and Japan offices
and building the management team. Attractive operating margins were
maintained due to strong sales growth.
The Group delivered adjusted operating cash flow of GBP10.5m.
The net cash position at year end increased +127% to GBP36.2m
(2018: GBP15.9m). Excluding the cash raised via the share placing
in May 2019 and the subsequent acquisitions of rFpro and DRI,
underlying net cash increased by GBP3.3m to GBP19.2m.
Sector review
The track testing sector delivered strong revenue growth of 50%
to GBP49.8m (2018: GBP33.3m) through continued demand from all
sectors for our range of driving robots and ADAS platforms. Driving
robot sales grew 43% to GBP30.1m (2018: GBP21.1m) through across
the board demand, but particular growth in Asia Pacific and the
USA. ADAS platforms grew by 66% to GBP19.7m (2018: GBP11.9m) with
the new LaunchPad platform for Vulnerable Road Users ('VRU')
gaining significant market traction complemented by continued
growth of the Guided Soft Target platform. The increased proportion
of ADAS platform sales is as expected as the market moves towards
testing of multi-object scenario-based tests which utilise a higher
quantity of interaction vehicles and VRUs.
For the laboratory testing and simulation sector, revenues grew
by 118% to GBP8.2m (2018: GBP3.7m) with strong growth in our sales
of Suspension Parameter Measurement Machines ('SPMM') and aVDS
sales increasing, particularly with the successful order and
technical partnership formed with Alfa Romeo Formula 1 team. On an
underlying basis, excluding the small revenue contribution from
rFpro, revenues grew by 99%.
The market for SPMM improved during FY2019, particularly as
demand from China has increased as new automotive OEMs required
kinematics and compliance measurement capabilities. The simulation
sector continues to develop as vehicle manufacturers recognise the
need for both driver-in-the-loop simulation and driverless
simulation in order to accelerate the development of active safety
systems and semi-autonomous driving technology. The motorsport
market continues to develop as the utilisation of high frequency
response motion-based simulation can provide significant
competitive advantages.
Progress on our strategy
The Group has made good progress against our strategic
priorities. The Group has delivered a number of new products to the
market during the year, including the Ground Traffic Control
proving ground automation software, heavy duty versions of both the
GST and LaunchPad enabling testing of larger vehicles such as
trucks and buses, and the development of an active system for
motion cueing in our aVDS simulator. The acquisitions of both rFpro
and DRI represent opportunities for further collaborative product
development.
The management team has been restructured and developed to
ensure we have the appropriate skills and experience to deliver the
strategic priorities and construction has commenced on our new
'North Site' facility adjacent to our existing headquarters.
Significant investment has been made in ensuring we have sufficient
manufacturing capacity to maintain our growth and lead times were
reduced in the first half of the year whilst maintaining the
Group's focus on quality.
The Group has established three new international locations,
expanding our footprint into strategically important markets.
Combined with our recent acquisitions we now have nine locations
across four countries to enable us to service our customers
directly and ensure responsiveness and agility. New offices have
been established in Japan (Yokohama), USA (Detroit) and Germany
(Munich) complementing the existing locations in the UK (Bradford
on Avon) and Germany (Giessen). The acquisitions have provided
additional facilities in the UK (Romsey) and three in the USA
(Torrance & Bakersfield, California and Ann Arbor,
Michigan).
Towards the end of the year the Group introduced a new service
and support offering which will be implemented during 2020 through
our new international locations.
Acquisitions
Following the Group's successful share placing in May 2019 which
raised net proceeds of ca. GBP48m we were able to pursue our
strategic objective to acquire value enhancing, attractive
acquisitions. During 2019 total acquisition spend was GBP35.4m of
which GBP18.1m was invested in the acquisition of rFpro, a leading
developer of engineering grade simulation software and digital
twins. Immediately prior to the end of the financial year we
invested GBP17.3m in the acquisition of Dynamic Research Inc, a
leading supplier of automotive engineering test products and
services to the US automotive sector.
The Group continues to seek value enhancing acquisitions and the
pipeline of potential opportunities remains positive.
Summary
AB Dynamics reported another robust performance in 2019,
delivering strong growth in revenue and earnings. Both the track
testing and laboratory and simulation sectors contributed to this
growth and this performance provides confidence for continued
progress in the year ahead, particularly leveraging the Group's
recently acquired businesses. We are aware of continued
difficulties and potential delays in the automotive sector.
However, with a proven business model coupled with long-term
structural market growth drivers the outlook for AB Dynamics
remains positive.
FINANCIAL REVIEW
The Group delivered strong revenue and profit growth during the
year and also started to invest in the capability and capacity
required to facilitate continued growth. This investment was funded
from cash generated from operations. Cash raised from the issue of
new shares was used to fund the acquisitions made during the year
leaving net cash at the year end of GBP36.2m that will support
further investment in the Group's capacity and future
acquisitions.
Trading performance
Revenue increased by 56% to GBP58.0m (2018: GBP37.1m) driven by
an increase in track testing revenue of 50% to GBP49.8m (2018:
GBP33.3m) and laboratory testing and simulation revenue of 118% to
GBP8.2m (2018: GBP3.7m).
Adjusted operating profit increased 58% to GBP13.5m (2018:
GBP8.5m) while adjusted earnings before interest, tax, depreciation
and amortisation ('EBITDA') increased 65% to GBP14.8m (2018:
GBP9.0m).
Adjusted operating margin increased by 20 bps to 23.3% (2018:
23.1%) as the operating leverage from the additional revenue
generated was used to invest in our infrastructure. After adding
back depreciation and amortisation, this left return on sales
(defined as EBITDA divided by revenue) of 25.1% (2018: 24.3%), an
increase of 80 bps.
After net interest income of GBP0.2m (2018: GBP0.1m), adjusted
profit before tax was GBP13.7m (2018: GBP8.6m).
The Group adjusted tax charge totalled GBP2.3m (2018: GBP1.2m),
an adjusted effective tax rate of 16.8% (2018: 14.1%). The
effective tax rate is lower than the current UK corporation tax
rate due to allowances for research and development and Patent Box.
In future years the effective tax rate is expected to increase as a
proportion of profits are expected to be generated overseas in
territories with higher tax rates than the UK.
Adjusted diluted earnings per share were 55.4p (2018: 36.9p), an
increase of 50%.
Adjustments totalled GBP2.7m (2018: GBP0.7m) of which GBP1.6m
relates to acquisition fees, GBP0.6m to share based payments and
GBP0.5m to fees to terminate agents as we brought our German
distribution channel in-house.
Statutory operating profit grew by 37% from GBP7.9m to GBP10.8m
and after interest income of GBP0.2m (2018: GBP0.1m), statutory
profit before tax was up 38% from GBP7.9m to GBP11.0m, giving
statutory basic EPS of 42.9p (2018: 36.3p). The statutory tax
charge was GBP2.3m (2018: GBP0.9m). A reconciliation of statutory
to underlying non-GAAP financial measures is provided below.
Return on capital employed ('ROCE')
Our capital-efficient business and high margins enable
generation of strong ROCE (defined as adjusted operating profit as
a percentage of capital employed). However, in the years in which
we acquire businesses or new properties, our capital base grows
disproportionately with profit therefore the ratio will be
impacted. This accounted for the decrease in ROCE in the year from
40.4% in 2018 to 18.7% in 2019.
Cash generation
Net cash at the end of the year was GBP36.2m (2018:
GBP15.9m).
Operating activities generated adjusted cash inflow of GBP10.5m
(2018: GBP9.9m) with cash conversion of 78% after net investment in
working capital of GBP3.6m. After interest income of GBP0.2m and
paying tax of GBP1.4m and dividends of GBP0.7m, this allowed us to
invest GBP4.9m in property, plant and equipment and acquisition of
intellectual property, leaving GBP3.1m (2018: GBP4.6m) free cash
flow.
On 7 June 2019, a total of 2,050,000 new ordinary shares were
placed for GBP22.00 and 227,500 new ordinary shares were admitted
to trading on AIM following the issue of Open Offer Shares, raising
total net proceeds of GBP48.2m. The exercise of share options added
a further GBP1.6m. GBP35.4m of these proceeds were invested in the
acquisition of rFpro and DRI (GBP32.8m net of cash acquired and
expenses).
Acquisitions
On 27 June 2019, the Group completed the acquisition of
Kangaloosh Limited (trading as 'rFpro') for initial consideration
of GBP18.1m with deferred contingent consideration of up to
GBP3.5m.
On 30 August 2019, the Group acquired 100% of the share capital
of Dynamic Research, Incorporated for initial consideration of
$21.0m with deferred contingent consideration of up to $3.5m.
The cash consideration was funded from the cash raised through
the share placing and open offer completed during the year.
Research and development
While research and development forms a significant part of the
Group's activities, a significant proportion relates to specific
customer programmes which are included in the cost of the product.
Other research and development costs, all of which have been
written off to the profit and loss account as incurred total
GBP0.8m (2018: GBP0.5m).
Foreign currency exposure
The Group faces currency exposure on its foreign currency
transactions and, with the acquisition of DRI and international
expansion of our sales offices, exposure to both foreign currency
translation risk and transaction risk will increase.
The Group maintains a natural hedge whenever possible to
transactional exposure by matching the cash inflows and outflows in
the respective currencies wherever possible.
Alternative performance measures
In the analysis of the Group's financial performance and
position, operating results and cash flows, alternative performance
measures are presented to provide readers with additional
information. The principal measures presented are adjusted measures
of earnings including adjusted operating profit, adjusted operating
margin, adjusted profit before tax, adjusted EBITDA and adjusted
earnings per share.
The annual report includes both statutory and adjusted non-GAAP
financial measures, the latter of which the Directors believe
better reflect the underlying performance of the business and
provide a more meaningful comparison of how the business is managed
and measured on a day-to-day basis. The Group's alternative
performance measures and KPIs are aligned to the Group's strategy
and together are used to measure the performance of the business
and form the basis of the performance measures for remuneration.
Adjusted results exclude certain items because if included, these
items could distort the understanding of the performance for the
year and the comparability between the periods.
We provide comparatives alongside all current year figures. The
term 'adjusted' is not defined under IFRS and may not be comparable
with similarly titled measures used by other companies. All profit
and earnings per share figures in this annual report relate to
underlying business performance (as defined above) unless otherwise
stated.
A reconciliation of adjusted measures to statutory measures is
provided below:
2019 2018
Statutory Adjustments Adjusted Statutory Adjustments Adjusted
Operating profit (GBPm) 10.8 2.7 13.5 7.8 0.7 8.5
Operating margin (%) 18.7 4.6 23.3 21.3 1.8 23.1
Profit before tax (GBPm) 11.0 3.7 13.7 7.9 0.7 8.6
Taxation (GBPm) (2.3) - (2.3) (0.9) (0.3) (1.2)
Profit after tax (GBPm) 8.7 2.7 11.4 7.0 0.4 7.4
Diluted earnings per share (pence) 42.1 13.3 55.3 35.0 1.9 36.9
Cash flow from operations 9.9 0.6 10.5 9.9 - 9.9
The adjustments comprise:
2019 2018
GBPm GBPm
Acquisition related charges 1.6 -
Fees to terminate agent 0.5 -
Share based payment 0.6 0.7
----------------------------- ----- -----
Adjustments 2.7 0.7
PRINCIPAL RISKS & UNCERTAINTIES
The following section provides an overview of the principal
risks and uncertainties that have the potential to impact the
implementation of the Group's strategy and business model.
Strategic
Risk Description Mitigation Change
Downturn Adverse changes in Increased
or macro-economic conditions * Revenue spread across a range of geographic markets
instability in key territories
in major or specific automotive
markets markets could potentially * Active safety & autonomous vehicle technology
reduce or delay demand required despite automotive downturn
for the Company's
products and services
* Reviewing options for entering adjacent markets
* Constant monitoring of market trends, drivers and
needs to ensure market leadership
--------------------------------------------------------------- ----------------------------------------------------------- ----------
Loss of Loss of a significant No Change
major customer to competition * Largest customer represents 6% of Group revenues
customers could result in reduced
revenues
* Continued product development and high levels of
customer service to retain key customers
* Long-term relationships with all key customers
--------------------------------------------------------------- ----------------------------------------------------------- ----------
Dependence The Group uses several Increased
on external agents and resellers * Transitioning the Group to a direct sales model in
routes to to address particular key territories with offices in Germany, USA and
market geographic markets: Japan
* Risk of reduced revenues if agreements end at short
notice
* The Company will maintain agents and resellers in
other territories as appropriate
* Limited control of market pricing with resellers
* Risks relating to financial consequences are
* Potential financial consequences on termination understood and all transitions managed to minimise
potential quantum of termination payments
--------------------------------------------------------------- ----------------------------------------------------------- ----------
Acquisitions The Group has completed Increased
Integration its first acquisitions * Extensive financial, commercial and legal due
& and there is potential diligence
Performance for acquisitions
to not deliver the
expected performance * Appropriate warranties and indemnities from sellers
resulting in a potential
financial impact
* Use of earn out deal structures to ensure management
retention and incentivisation
* Recruitment of senior management to support
acquisitions, including finance
* Close management and monitoring of business
performance against budget
--------------------------------------------------------------- ----------------------------------------------------------- ----------
Operational
Risk Description Mitigation Change
Cybersecurity Risk of malicious No Change
& Business cyber attack on Company * External audit completed during 2019 and recommended
Interruption IT systems or actions being implemented
significant
failure of IT
infrastructure. * Implementation of a new cloud-based CRM/ERP system
during 2020
------------------------ ------------------------------------------------------------ ----------
Competitor Competitors may develop No Change
Actions new technologies * Constant product and technology development
and/or products which
may restrict revenue
growth. Competitors * Monitoring of competitors and the IP/patents to
may establish physical ensure no infringement on Company intellectual
assets in key locations property
* Monitoring of competitor product launches and
territory actions
------------------------ ------------------------------------------------------------ ----------
Loss of Key In previous years Decreased
Personnel the Company had * Expansion of staff headcount and specific actions
dependence around succession planning
on a small number
of key individuals
which could affect * Strong staff retention rate with average length of
future business growth service of > 4 years with over 2/3 of employees
if they left the recruited in the last 2 years
Company
* Recruitment and training of new management
* Broadening of the senior management team
------------------------ ------------------------------------------------------------ ----------
Threat of Unforeseen new and No Change
Disruptive novel technology * Constant horizon scanning of new technologies
Technology displaces the need
for Company products
and services. * Engagement with customers and regulators to ensure we
Simulation meet their current and future requirements
potentially reduces
the volume of physical
testing products * Established simulation capability and acquired rFpro
to ensure the Company can address both virtual and
real-world testing
------------------------ ------------------------------------------------------------ ----------
Product Liability Risk that products No Change
supplied by the Group * Robust product development process ensuring products
fail in service and are safe and fit for purpose
result in a claim
under product
liability. * Established quality system to ensure that
manufactured products meet the design standard
* Suitably qualified and experienced engineering and
technology staff
* Product liability insurance policy in place
------------------------ ------------------------------------------------------------ ----------
Failure to Rapid growth places Decreased
Manage Growth demand on the Group's * Strategic priority placed on Group's capability and
management and capacity
resources.
Suitable facilities
are required to support * Implementation of a five-year financial model which
the current and determines requirements for people, facilities and
forecast equipment
demand of the market.
Failure to ensure
adequate capability * Two new facilities currently under construction
and capacity could
result in reduced
revenues and/or growth * Implementation of appropriate IT infrastructure
through comprehensive CRM/ERP system
* Overseas offices established in USA, Germany and
Japan to support customers and product installed base
------------------------ ------------------------------------------------------------ ----------
Financial
Risk Description Mitigation Change
Foreign Currency The Group operates Increased
internationally and * Group finance function monitors currency exposure
is exposed to both forecasts
transactional and
translational foreign
exchange risk. The * Majority of the Group's revenues are contracted in
Group is particularly GBP
exposed to the Euro
and US Dollar. Exposure
to the Chinese RMB * Use of foreign currency contracts to hedge where
and Japanese Yen appropriate
is expected to grow.
The risk is enhanced
by Brexit uncertainty
and related currency
volatility and the
recently established
overseas entities.
------------------------ ------------------------------------------------------------- ----------
Credit Risk The Group has the No Change
potential to be exposed * Risk is assessed on a case by case basis and payment
to bad debt risk terms established according to risk
from customers, however
there is no history
of material bad debt * Advance payments and letters of credit used where
in the business appropriate
------------------------ ------------------------------------------------------------- ----------
Compliance
Risk Description Mitigation Change
Intellectual The Group utilises No Change
Property its intellectual * The Group has patented technology where appropriate
/ Patents property to deliver that cover the key sales territories
product and service
revenue. Intellectual
property theft and/or * Where products are not able to be protected through
infringement could patents, design features and/or encryption is used to
adversely affect protect the core IP
product sales
* Continual review of current patent and IP status and
review of new products/technology conducted to ensure
IP is protected
----------------------- ------------------------------------------------------------- ----------
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Strategic
Report, Directors' Report, any other surrounding information and
the Group and parent company financial statements in accordance
with applicable law and regulations. Company law requires the
Directors to prepare group and parent company financial statements
for each financial year. Under that law, they have elected to
prepare the Group financial statements in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU) and applicable law and have elected to
prepare the parent company financial statements in accordance with
UK Accounting Standards and applicable law (UK Generally Accepted
Accounting Practice).
Under Company law, the Directors must not approve the financial
statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Group and parent company and of
their profit or loss for that year. In preparing each of the Group
and parent company financial statements, the Directors are required
to:
-- Select suitable accounting policies and apply them consistently;
-- Make judgments and accounting estimates that are reasonable and prudent;
-- State whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
-- Prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Group and the parent
company will continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the parent
company's transactions and disclose with reasonable accuracy at any
time the financial position of the parent company and enable them
to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of
the parent company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
They are further responsible for ensuring that the Strategic
Report and the Report of the Directors and other information
included in the Annual Report and Financial Statements is prepared
in accordance with applicable law in the United Kingdom.
The maintenance and integrity of the AB Dynamics plc web site is
the responsibility of the Directors; the work carried out by the
auditors does not involve the consideration of these matters and,
accordingly, the auditors accept no responsibility for any changes
that may have occurred in the accounts since they were initially
presented on the website.
Legislation in the United Kingdom governing the preparation and
dissemination of the accounts and the other information included in
annual reports may differ from legislation in other
jurisdictions.
This responsibility statement was approved by the Board of
Directors on 26 November 2019 and is signed on its behalf by:
Dr James Routh Anthony Best
Chief Executive Officer Chairman
Consolidated statement of comprehensive income
for the year ended 31 August 2019
Restated*
2019 2018
Note GBP'000 GBP'000
Revenue 2 57,957 37,051
Cost of sales (30,039) (19,560)
Gross profit 27,918 17,491
Administrative expenses (16,505) (8,948)
Operating profit before share based payment
costs 11,413 8,543
Share based payment costs (586) (660)
--------- ----------
Operating profit 10,827 7,883
Finance income 171 64
Profit before tax 10,998 7,947
Tax expense (2,340) (932)
Profit for the year 8,658 7,015
Other comprehensive income:
Items that may be reclassified to consolidated
income statement:
Exchange gains on foreign currency net 178 -
investments
Total comprehensive income for the year 8,836 7,015
========= ==========
Earnings per share - basic (pence) 4 42.9p 36.3p
Earnings per share - diluted (pence) 4 42.1p 35.0p
Alternative performance measures 2019 2018
Note GBP'000 GBP'000
Operating profit 10,827 7,883
Add: Acquisition related charges 1,551 -
Add: Fee to terminate agents 550 -
Add: Share based payment costs 586 660
Adjusted operating profit 13,514 8,543
Finance income 171 64
Adjusted profit before tax 13,685 8,607
======== ========
Adjusted earnings per share 4 56.4p 38.2p
Adjusted diluted earnings per share 4 55.4p 36.9p
------------------------------------- ----- -------- --------
* The prior year comparative numbers have been restated to
reclassify certain overheads from cost of sales to administrative
expenses.
Consolidated statement of financial position
as at 31 August 2019 2019 2018
Note GBP'000 GBP'000
NON-CURRENT ASSETS
Goodwill 19,244 -
Acquired intangible assets 21,803 -
Other intangible assets 268 -
Investment 14 -
Property, plant and equipment 17,922 13,679
Deferred tax assets 1,952 1,289
--------------------- ---------------
61,203 14,968
--------------------- ---------------
CURRENT ASSETS
Inventories 11,149 6,903
Trade and other receivables 12,986 8,470
Contract assets 1,885 2,189
Taxation 939 56
Cash and cash equivalents 36,225 15,942
--------------------- ---------------
63,184 33,560
--------------------- ---------------
TOTAL ASSETS 124,387 48,528
===================== ===============
EQUITY AND LIABILITIES
Share capital 5 222 195
Share premium 60,049 10,258
Reconstruction reserve (11,284) (11,284)
Merger relief reserve 11,390 11,390
Translation reserve 178 -
Retained profits 38,252 27,484
--------------------- ---------------
TOTAL EQUITY 98,807 38,043
NON-CURRENT LIABILITIES
Deferred tax liabilities 5,421 339
Deferred consideration 3,239 -
--------------------- ---------------
8,660 339
--------------------- ---------------
CURRENT LIABILITIES
Trade and other payables 16,920 10,146
TOTAL LIABILITIES 25,580 10,485
===================== ===============
TOTAL EQUITY AND LIABILITIES 124,387 48,528
===================== ===============
Consolidated statement of changes in equity
for the year ended 31 August 2019
Share Share Reconstruction Merger Translation Retained Total
capital premium reserve relief reserve profits equity
reserve
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 September
2017 191 8,579 (11,284) 11,390 - 19,370 28,246
Share based
payments - - - - - 660 660
Total comprehensive
income - - - - - 7,015 7,015
Tax on
options - - - - - 1,107 1,107
Dividends 3 - - - - - (668) (668)
Issue of
shares,
net of
share issue
costs 4 1,679 - 1,683
--------------------- ----- --------- --------- --------------- --------- ------------ --------- --------
At 31 August
2018 195 10,258 (11,284) 11,390 - 27,484 38,043
Share based
payments - - - - - 586 586
Total comprehensive
income - - - - 178 8,658 8,836
Tax on
options - - - - - 2,271 2,271
Dividends 3 - - - - - (747) (747)
Issue of
shares,
net of
share issue
costs 27 49,791 - - - - 49,818
--------------------- ----- --------- --------- --------------- --------- ------------ --------- --------
At 31 August
2019 222 60,049 (11,284) 11,390 178 38,252 98,807
--------------------- ----- --------- --------- --------------- --------- ------------ --------- --------
The share premium account is a non-distributable reserve
representing the difference between the nominal value of shares in
issue and the amounts subscribed for those shares.
The reconstruction reserve and merger relief reserve have arisen
as follows:
The acquisition by the Company of the entire issued share
capital of Anthony Best Dynamics Ltd in 2013 was accounted for a
Group reconstruction. Consequently, the assets and liabilities of
the Group were recognised at their previous book values as if the
Company had always been the parent company of the Group.
The share capital for the period covered by these consolidated
financial statements and the comparative periods is stated at the
nominal value of the shares issued pursuant to the above share
arrangement. Any differences between the nominal value of these
shares and previously reported nominal values of shares and
applicable share premium issued by Anthony Best Dynamics Ltd were
transferred to the reconstruction reserve.
Retained profits represent the cumulative value of the profits
not distributed to shareholders but retained to finance the future
capital requirements of the Group.
Consolidated cash flow statement
for the year ended 31 August 2019
2019 2018
GBP'000 GBP'000
Profit before tax 10,998 7,947
Depreciation and amortisation 1,324 463
Loss on sale of tangible assets - 15
Interest income (171) (64)
Acquisition expenses 768 -
Share based payment 586 660
Operating cash flow before changes in working capital 13,505 9,021
(Increase) in inventories (3,447) (1,944)
(Increase) in trade and other receivables (1,667) (333)
Increase in trade and other payables and accruals 1,554 3,194
Cash flow from operating activities 9,945 9,938
Interest received 171 64
Income tax paid (1,350) (1,002)
Net cash flow from operating activities 8,766 9,000
Cash flow from investing activities
Acquisition of businesses (including expenses, (32,792) -
net of cash acquired)
Purchase of property, plant and equipment (4,706) (3,698)
Purchase of other intangibles (228) -
Sale of property, plant and equipment - 6
Cash flow used in investing activities (37,726) (3,692)
Cash flow from financing activities
Dividends paid (747) (668)
Proceeds from issue of share capital, net
of share issue costs 49,818 1,683
Net cash flow generated from financing activities 49,071 1,015
Net increase in cash and cash equivalents 20,111 6,323
Cash and cash equivalents at beginning of
the financial year 15,942 9,619
Effect of exchange rates on cash and cash 172 -
equivalents
Cash and cash equivalents at end of the financial
year 36,225 15,942
========= ========
1. General information
AB Dynamics plc is a public company limited by shares and
registered in England and Wales with company number 08393914. The
Company is domiciled in the United Kingdom and the registered
office and principal place of business is Middleton Drive,
Bradford-on-Avon, Wiltshire, BA15 1GB.
The principal activity of the Group is the design, manufacture
and development of advanced testing and measurement products and
services to the global automotive industry. The Group's products
and services are used primarily for the development of road
vehicles, particularly in the areas of active safety and autonomous
systems.
Basis of preparation
The financial information set out in this document does not
constitute the Group's statutory accounts for the year ended 31
August 2019 or 31 August 2018. Statutory accounts for the year
ended 31 August 2018 were approved by the Board of Directors on 13
November 2018 and delivered to the Registrar of Companies.
Statutory accounts for the year ended 31 August 2019 will be
delivered to the Registrar following the Company's AGM. The report
of the auditors on these accounts was unqualified, did not contain
an emphasis of matter paragraph and did not contain any statement
under Section 498 of the Companies Act 2006.
This financial information is measured and presented in Sterling
which is the currency of the primary economic environment in which
the Group operates. It has been prepared under the historical cost
convention, except for financial instruments that have been
measured at fair value through profit or loss.
This financial information has been prepared in accordance with
International Financial Reporting Standards ('IFRS') as adopted by
the EU including related interpretations issued by the
International Financial Reporting Interpretations Committee
('IFRIC'), and in accordance with the Companies Act 2006 as
applicable to companies reporting under IFRS. It has been prepared
on the going concern basis, which assumes that the Group will
continue to be able to meet its liabilities as they fall due for
the foreseeable future. The accounting policies adopted are
consistent with those of the Group's statutory accounts for the
year ended 31 August 2018, as described in those financial
statements. New standards or interpretations which came into effect
for the current reporting period did not have a material impact on
the net assets or results of the Group.
Standards, amendments and interpretations to published standards
not yet effective
The Directors have considered those Standards and
Interpretations, which have not been applied in the financial
statements but are relevant to the Group's operations, that are in
issue but not yet effective and do not consider that they will have
a material impact on the future results of the Group.
The Directors are in the process of considering the potential
changes that may occur to the financial statements under IFRS 16
'Leases'. This will apply to the Group's accounting period
beginning on 1 September 2019. It is not expected that the
application of IFRS 16 will have a material impact on the Group's
results.
2. Segment reporting
The Group derives revenue from the sale of its advanced
measurement, simulation and testing products derived in assisting
the global automotive industry in the laboratory and on the test
track. The income streams are all derived from the utilisation of
these products which, in all aspects except details of revenue, are
reviewed and managed together within the Group and as such are
considered to be the only segment.
The operating segment is based on internal reports about
components of the Group, which are regularly reviewed and used by
the Board of Directors being the Chief Operating Decision Maker
('CODM').
Analysis of revenue by country of destination:
2019 2018
GBP'000 GBP'000
United Kingdom 2,028 617
Rest of Europe 15,741 12,477
North America 9,499 5,094
Rest of the World 30,689 18,863
-------- --------
57,957 37,051
======== ========
All of the Group's revenue originated in the UK. No customer
individually represents 10% or more of total revenue.
Assets and liabilities by segment are not reported to the Board
of Directors on a monthly basis, therefore are not used as a key
decision making tool and are not disclosed here.
A disclosure of non-current assets by location is shown
below:
2019 2018
GBP'000 GBP'000
United Kingdom 41,083 14,939
Rest of Europe 347 29
North America 19,773 -
61,203 14,968
======== ========
Revenues are disaggregated as follows:
2019 2018
Revenue by sector GBP'000 GBP'000
Track testing 49,796 33,304
Laboratory testing and simulation 8,161 3,747
-------- --------
57,957 37,051
======== ========
3. Dividends paid
2019 2018
GBP'000 GBP'000
Final 2017 dividend paid of GBP0.02
per share - 384
Interim dividend paid of GBP0.0147
per share - 284
Final 2018 dividend paid of GBP0.022 430 -
per share
Interim dividend paid of GBP0.01612 317 -
per share
-------- --------
747 668
======== ========
The Board has proposed a final dividend of 2.79p per share
totalling GBP619,000. Together with the interim dividend of 1.61p
per share this gives a total ordinary dividend of 4.40p for the
year.
4. Earnings per share
Basic earnings per share is calculated by dividing the profit
attributable to equity holders by the weighted average number of
ordinary shares in issue during the period.
Diluted earnings per share is calculated by adjusting the
weighted average number of ordinary shares outstanding to assume
conversion of all potentially dilutive shares. The Company has one
category of potentially dilutive shares, namely share options.
The calculation of earnings per share is based on the following
earnings and number of shares.
2019 2018
Profit for the year attributable to owners
of the Group (GBP'000) 8,658 7,015
Weighted average number of shares used in
calculating earnings per share (000):
Basic 20,201 19,330
Diluted 20,585 20,024
Earnings per share (pence)
Basic 42.9 36.3
Diluted 42.1 35.0
Adjusted profit before tax (GBP'000) 13,685 8,607
Adjusted tax (GBP'000) (2,291) (1,214)
Adjusted profit after tax (GBP'000) 11,394 7,393
======== ========
Adjusted earnings per share (pence) 56.4 38.2
Adjusted diluted earnings per share (pence) 55.4 36.9
Adjusted earnings per share is calculated as the total of
adjusted profit before tax, less income tax costs, but including
the tax impact of the items included in the calculation of adjusted
profit.
5. Share capital
The allotted, called up and fully paid share capital is made up
of 22,219,982 ordinary shares of GBP0.01 each.
Note Number Share Share premium Total
of shares capital GBP'000
000 GBP'000 GBP'000
At 1 September
2017 19,112 191 8,579 8,770
13 September 2017 (i) 82 1 323 324
------- ----------- --------- -------------- ---------
19 January 2018 (ii) 194 2 766 768
------- ----------- --------- -------------- ---------
15 May 2018 (iii) 25 - 99 99
------- ----------- --------- -------------- ---------
23 July 2018 (iv) 124 1 491 492
------- ----------- --------- -------------- ---------
At 31 August 2018 19,537 195 10,258 10,453
----------- --------- -------------- ---------
6 December 2018 (v) 143 1 564 565
------- ----------- --------- -------------- ---------
7 June 2019 (vi) 2,277 23 48,195 48,218
------- ----------- --------- -------------- ---------
22 July 2019 (vii) 263 3 1,032 1,035
------- ----------- --------- -------------- ---------
At 31 August 2019 22,220 222 60,049 60,271
=========== ========= ============== =========
(i) On 13 September 2017, a total of 82,053 share options were
exercised of GBP0.01 each for GBP3.95.
(ii) On 19 January 2018, a total of 193,486 share options were
exercised of GBP0.01 each for GBP3.95.
(iii) On 15 May 2018, a total of 25,127 share options were
exercised of GBP0.01 each for GBP3.95.
(iv) On 23 July 2018, a total of 123,922 share options were
exercised of GBP0.01 each for GBP3.95.
(v) On 6 December 2018, a total of 142,702 share options were
exercised of GBP0.01 each for GBP3.95.
(vi) On 7 June 2019, a total of 2,050,000 new ordinary shares
were placed of GBP0.01 each for GBP22.00 and a total of 227,500 new
ordinary shares of GBP0.01 were admitted to trading on AIM
following the issue of Open Offer Shares.
(vii) On 22 July 2019, a total of 263,246 share options were
exercised of GBP0.01 each for GBP3.95.
6. Acquisition of businesses
On 28 June 2019 the Group acquired 100% of Kangaloosh Limited
(trading as "rFpro") based in Romsey, UK, for initial consideration
of GBP18.1m, which included GBP0.6m of surplus cash, before
acquisition expenses of GBP0.3m. Maximum deferred contingent
consideration of GBP3.2m is payable based on the performance of
rFpro for the twelve months ended 31 January 2021.
On 30 August 2019 the Group acquired 100% of Dynamic Research
Incorporated ('DRI') based in California, US, for initial
consideration of GBP17.3m (US$21.0m), before acquisition expenses
of GBP0.4m. Maximum deferred contingent consideration of GBP2.9m
(US$3.5m) is payable based on the performance of DRI for the twelve
months ended 31 May 2020.
Acquisition expenses of GBP768,000 are included in
administrative expenses within the consolidated statement of
comprehensive income.
Set out below is an analysis of the net book values and
provisional fair values relating to these acquisitions:
rFpro DRI Total
Provisional Provisional Provisional
Book value Fair value Book value Fair value Book value Fair value
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- ----------- ------------ ----------- ------------ ----------- ------------
Acquired intangible
assets - 14,650 - 7,432 - 22,082
Deferred tax (9) (2,499) - (2,215) (9) (4,714)
Other intangible
assets 59 59 - - 59 59
Investment - - 14 14 14 14
Property, plant
and equipment 58 58 498 498 556 556
Inventories - - 799 799 799 799
Trade and other
receivables 858 858 1,722 1,687 2,580 2,545
Trade and other
payables (1,089) (2,197) (868) (868) (1,957) (3,065)
--------------------- ----------- ------------ ----------- ------------ ----------- ------------
Net assets
acquired (123) 10,929 2,165 7,347 2,042 18,276
Goodwill - 7,535 - 11,709 - 19,244
--------------------- ----------- ------------ ----------- ------------ ----------- ------------
(123) 18,464 2,165 19,056 2,042 37,520
--------------------- ----------- ------------ ----------- ------------ ----------- ------------
Cash paid 18,085 17,270 35,355
Cash acquired (2,860) (471) (3,331)
Expenses of
acquisition 335 433 768
--------------------- ----------- ------------ ----------- ------------ ----------- ------------
Net cash paid,
after acquisition
expenses 15,560 17,232 32,792
Deferred contingent
consideration
payable 3,239 2,257 5,496
Less: expenses
of acquisition (335) (433) (768)
--------------------- ----------- ------------ ----------- ------------ ----------- ------------
Total consideration 18,464 19,056 37,520
--------------------- ----------- ------------ ----------- ------------ ----------- ------------
The fair values set out above are provisional and will be
finalised in the next financial year. Goodwill of GBP19,244,000
recognised on these acquisitions represents the amount paid for
future sales growth from both new customers and new products,
operating cost synergies and employee know-how.
From the date of acquisition to 31 August 2019, the newly
acquired rFpro business contributed GBP694,000 to revenue and
GBP231,000 to operating profit. The newly acquired DRI business did
not contribute to revenue or operating profit as it was acquired at
the reporting date.
Had these acquisitions been completed at the beginning of the
year Group revenue would have been GBP68,504,000 and operating
profit would have been GBP13,019,000.
7. Alternative Performance Measures
Alternative performance measures are items of income and expense
which, because of the nature, size and/or infrequency of the events
giving rise to them, merit separate presentation. These specific
items are presented below the income statement to provide greater
clarity and a better understanding of the impact of these items on
the Group's financial performance. In doing so, it also facilitates
greater comparison of the Group's underlying results with prior
periods and assessment of trends in financial performance.
Acquisition related charges are GBP1,551,000 (2018: Nil) and
comprise GBP279,000 (2018: Nil) of amortisation of acquisition
intangible assets, GBP768,000 (2018: Nil) of acquisition expenses
and GBP504,000 (2018: Nil) of other acquisition related expenses
including exchange loss and transaction bonus payable.
GBP550,000 (2018: Nil) relates to fees to terminate agents as
the German distribution channel was brought in-house. GBP586,000
(2018: GBP660,000) relates to share based payment costs.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR PGGWCGUPBGMQ
(END) Dow Jones Newswires
November 27, 2019 02:00 ET (07:00 GMT)
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