TIDMGSD
RNS Number : 2266D
Goldshield Group plc
30 November 2009
Chairman's Overview
I am pleased to report that our half year results are in line with expectations.
Sales and margins in our Pharmaceutical division continued to grow and losses in
Consumer Health division have reduced.
Much of this success is due to the significant changes we have made to our
systems which have been introduced over the last two years. Whilst completion of
this programme of work has slipped, partly due to the diversion of the
management team in preparing their bid for the Company, the benefit it has
brought to our efficiency and effectiveness is apparent. It is highly unlikely
to continue to have the same level of impact on the bottom line in the years to
come.
To continue on an upward path of sales and profit growth, we need to invest in
new products. I am disappointed to report that we have failed to do so during
the period under review. The operational constraints placed upon the Company
following the announcement of a bid by the management team and another bidder
undoubtedly contributed to this as did the uncertainty created in the minds
of would be vendors.
My final remarks are to the employees of Goldshield who I thank for their loyal
support and professionalism during a time of great uncertainty.
Dr. Keith Hellawell QPM
Chairman
27 November 2009
Chief Executive Officer's Operating Review
Overview
I am pleased to report that the Group has achieved another solid trading
performance during the period with growth in sales across both the
Pharmaceuticals and Consumer Health divisions.
The Group delivered 7.4% growth in sales with turnover rising to GBP53.9 million
(2008: GBP50.2 million) and a 55.7% growth in profits with profit before tax
rising to GBP13.7 million (2008: GBP8.8 million). Our pre-exceptional earnings
before tax, amortisation and impairment losses (EBTA) have also grown to GBP15.1
million (2008: GBP11.1 million). Earnings Per Share (EPS) are up 60.6% to 25.7
pence (2008: 16.0 pence).
As I have stated before, strengthening the internal infrastructure and building
a skilled senior management team has been an important part of the Group's
strategy over the last two years. We have strengthened our Regulatory and
Quality teams to manage compliance with the Medicines and Healthcare products
Regulatory Agency requirements and successfully launched SAP in July 2009 to
deliver more internal operational efficiencies across the Group. I expect the
SAP systems to be fully implemented by the end of the financial year.
Pharmaceuticals division
Our Pharmaceuticals division has enjoyed a good period of growth. It reported a
net increase in sales of 9.9% to GBP41.0 million (2008: GBP37.3 million). Our
operating profit was GBP16.5 million (2008: GBP10.3 million). The 60.2% increase
in operating profit has been achieved by streamlined and improved operational
efficiencies and a diverse mix of high margin products.
Our European retail business experienced a 15.0% increase in sales to GBP25.3
million (2008: GBP22.0 million) in spite of enforced price decreases by
government authorities. As previously reported, the Pharmaceutical Pricing
Regulation Scheme (PPRS) has put a margin pressure on our branded pharmaceutical
products. A further PPRS 1.9% price reduction is expected at the beginning of
2010.
Sales in our European Hospitals business were constant at GBP6.3 million (2008:
GBP6.3 million).
Our Retail Generics business delivered a good performance with a 6.6% increase
in sales at GBP6.5 million (2008: GBP6.1 million) on the basis of an improved
product mix, tighter cost controls and operational efficiencies.
Our Country Distributors business achieved total sales for the six months of
GBP2.8 million (2008: GBP2.9 million) a decrease of 3.4%.
Consumer Health division
Revenue in the Consumer Health division remained constant at GBP12.3 million
(2008: GBP12.3 million). The business experienced an operating loss of GBP0.7
million (2008: loss of GBP2.1 million).
Our European Consumer Health division achieved sales of GBP7.8 million (2008:
GBP9.1 million), a 14.3% decrease. Nevertheless, Our Weight Management product
category has performed well despite strong competition in the respective market
segment. The key products - Lipobind and Appesat - drove sales up 8%, achieving
positions two and four respectively in terms of the market share in Retail.
Appesat achieved this position six months after its launch.
Our US Consumer Health division achieved sales of GBP4.4 million (2008: GBP2.9
million) a 51.7% increase. The business has focused on distributor and customer
recruitment and has benefited from a change in management structure to ensure a
more efficient work flow. The business has been impacted by the strengthening of
the dollar rate.
The Independent Directors have recommended to Shareholders to accept the
Company's buy-out led by the Management Team (myself, Kirti Patel, Ajay Patel
and Ram Swamy). I acknowledge that the last months have been a period of
uncertainty and concern to the Group's employees. On behalf of the Management
team I would like to thank the entire staff at Goldshield Group plc for
their commitment and support and look forward to the continuing success of our
Group in the future.
Statement of Directors' responsibilities
The Directors of Goldshield Group plc confirm that to the best of their
knowledge this condensed set of financial statements has been prepared in
accordance with IAS 34 as adopted by the European Union, and the Chief Executive
Officer's Operating Review includes a true and fair view of the assets,
liabilities, financial position and profits of Goldshield Group plc as required
by the Disclosure and Transparency Rules (DTR) 4.2.4 and a fair view of the
information required by DTR 4.2.7 and DTR 4.2.8.
Rakesh Patel
Chief Executive Officer
27 November 2009
Note: Earnings before tax, amortisation, impairment losses and exceptional legal
and professional costs are calculated as follows:-
+--------------------------------+-------------+-------------+------------+
| | Six months | Six months | Year ended |
| | ended | ended | |
| | 30 | 30 | 31 March |
| | September | September | |
+--------------------------------+-------------+-------------+------------+
| | 2009 | 2008 | 2009 |
+--------------------------------+-------------+-------------+------------+
| | (unaudited) | (unaudited) | (audited) |
+--------------------------------+-------------+-------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+-------------+-------------+------------+
| Revenue | 53,935 | 50,151 | 98,397 |
+--------------------------------+-------------+-------------+------------+
| Profit before tax | 13,666 | 8,795 | 21,329 |
+--------------------------------+-------------+-------------+------------+
| Amortisation | 1,913 | 2,148 | 4,299 |
+--------------------------------+-------------+-------------+------------+
| Impairment losses | - | 112 | 749 |
+--------------------------------+-------------+-------------+------------+
| Exceptional legal and | (455) | - | (2,100) |
| professional costs | | | |
+--------------------------------+-------------+-------------+------------+
| Earnings before tax, | 15,124 | 11,055 | 24,277 |
| amortisation, impairment and | | | |
| exceptional legal and | | | |
| professional costs | | | |
+--------------------------------+-------------+-------------+------------+
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Consolidated Income Statement for the six months ended 30 September 2009 |
| |
+------------------------------------------------------------------------------------------------+
| | | Before | Exceptional | Total Six | Total | Total |
| | | exceptional | items | months | Six months | Year |
| | | items | GBP'000 | ended | ended | ended |
| | | GBP'000 | | 30September | 30 | 31 March |
| | | | | 2009 | September | 2009 |
| | | | | (unaudited) | 2008 | (audited) |
| | | | | GBP'000 | (unaudited) | GBP'000 |
| | | | | | GBP'000 | |
+--------------------+-------+ + + + + +
| | | | | | | |
+--------------------+-------+ + + + + +
| |Notes | | | | | |
| | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Revenue | 2 | 53,935 | - | 53,935 | 50,151 | 98,397 |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Cost of sales | | (14,972) | - | (14,972) | (15,034) | (30,162) |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Gross profit | | 38,963 | - | 38,963 | 35,117 | 68,235 |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Distribution costs | | (2,580) | - | (2,580) | (3,043) | (5,519) |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Impairment losses | 6,7 | - | - | - | (112) | (749) |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Exceptional legal | | - | 455 | 455 | - | 2,100 |
| and professional | | | | | | |
| costs | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Other | | (23,436) | - | (23,436) | (23,722) | (43,830) |
| administrative | | | | | | |
| expenses | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Administrative | | (23,436) | 455 | (22,981) | (23,834) | (42,479) |
| expenses | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Operating profit | | 12,947 | 455 | 13,402 | 8,240 | 20,237 |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Finance costs | | - | - | - | - | (4) |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Finance Income | | 264 | - | 264 | 555 | 1,096 |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Profit before tax | | 13,211 | 455 | 13,666 | 8,795 | 21,329 |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Income tax expense | 3 | (4,572) | (127) | (4,699) | (3,167) | (7,447) |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Profit after tax | | 8,639 | 328 | 8,967 | 5,628 | 13,882 |
| attributable to | | | | | | |
| shareholders of | | | | | | |
| parent | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Earnings per share | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Basic (pence) | 5 | | | 25.7 | 16.0 | 39.7 |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Diluted (pence) | 5 | | | 25.7 | 16.0 | 39.7 |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Dividend paid | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Dividends paid | 4 | | | 5.8 | 5.5 | 8.4 |
| during the period | | | | | | |
| (pence) | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| Dividends paid | 4 | | | 2,023 | 1,936 | 2,948 |
| during the period | | | | | | |
| (GBP'000) | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
| | | | | | | |
+--------------------+-------+-------------+-------------+-------------+-------------+-----------+
+----------------------------------+--------------+--------------+------------+
| Consolidated Statement of Comprehensive Income for the six months ended 30 |
| September 2009 |
+-----------------------------------------------------------------------------+
| | Total six | Total six | Total year |
| | months ended | months ended | ended |
| | 30September | 30 September | 31March |
| | 2009 | 2008 | 2009 |
| | (unaudited) | (unaudited) | (audited) |
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------+--------------+--------------+------------+
| Transactions with owners | | | |
+----------------------------------+--------------+--------------+------------+
| Profit for the period | 8,967 | 5,628 | 13,882 |
+----------------------------------+--------------+--------------+------------+
| Currency translation differences | (807) | (595) | 3,024 |
+----------------------------------+--------------+--------------+------------+
| Deferred tax on translation | 226 | 167 | (847) |
| reserve | | | |
+----------------------------------+--------------+--------------+------------+
| Other comprehensive income for | (581) | (428) | 2177 |
| the period | | | |
+----------------------------------+--------------+--------------+------------+
| Total comprehensive income for | 8,386 | 5,200 | 16,059 |
| the period | | | |
+----------------------------------+--------------+--------------+------------+
+------------------------------------------+-------+-------------+-------------+------------+
| Consolidated Balance Sheet as at 30 September 2009 |
+-------------------------------------------------------------------------------------------+
| |Notes | As at | As at | As at |
| | | 30 | 30 | 31 March |
| | | September | September | 2009 |
| | | 2009 | 2008 | (audited) |
| | | (unaudited) | (unaudited) | GBP'000 |
| | | GBP'000 | GBP'000 | |
+------------------------------------------+-------+-------------+-------------+------------+
| Assets | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Non-current | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Intangible assets | 6 | 12,907 | 15,192 | 14,906 |
+------------------------------------------+-------+-------------+-------------+------------+
| Property, plant and equipment | 7 | 4,651 | 4,003 | 4,803 |
+------------------------------------------+-------+-------------+-------------+------------+
| Held to maturity investments | | - | 350 | - |
+------------------------------------------+-------+-------------+-------------+------------+
| Deferred tax assets | | 660 | 702 | 602 |
+------------------------------------------+-------+-------------+-------------+------------+
| | | 18,218 | 20,247 | 20,311 |
+------------------------------------------+-------+-------------+-------------+------------+
| Current | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Inventories | | 11,857 | 12,529 | 14,229 |
+------------------------------------------+-------+-------------+-------------+------------+
| Trade and other receivables | | 16,978 | 13,782 | 14,558 |
+------------------------------------------+-------+-------------+-------------+------------+
| Cash and cash equivalents | | 37,804 | 24,946 | 27,462 |
+------------------------------------------+-------+-------------+-------------+------------+
| | | 66,639 | 51,257 | 56,249 |
+------------------------------------------+-------+-------------+-------------+------------+
| Total assets | | 84,857 | 71,504 | 76,560 |
+------------------------------------------+-------+-------------+-------------+------------+
| | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Liabilities | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Current | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Provisions | | - | 2,554 | - |
+------------------------------------------+-------+-------------+-------------+------------+
| Trade and other payables | | 17,783 | 19,364 | 19,428 |
+------------------------------------------+-------+-------------+-------------+------------+
| Other liabilities | | 1,676 | 1,848 | 1,411 |
+------------------------------------------+-------+-------------+-------------+------------+
| Current tax liabilities | | 5,966 | 5,173 | 2,638 |
+------------------------------------------+-------+-------------+-------------+------------+
| | | 25,425 | 28,939 | 23,477 |
+------------------------------------------+-------+-------------+-------------+------------+
| Non-current | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Deferred tax liabilities | | 890 | 644 | 1,116 |
+------------------------------------------+-------+-------------+-------------+------------+
| | | 890 | 644 | 1,116 |
+------------------------------------------+-------+-------------+-------------+------------+
| Total liabilities | | 26,315 | 29,583 | 24,593 |
+------------------------------------------+-------+-------------+-------------+------------+
| Net assets | | 58,542 | 41,921 | 51,967 |
+------------------------------------------+-------+-------------+-------------+------------+
| | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Equity | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Equity attributable to shareholders of | | | | |
| Goldshield Group plc | | | | |
+------------------------------------------+-------+-------------+-------------+------------+
| Share capital | 8 | 1,919 | 1,919 | 1,919 |
+------------------------------------------+-------+-------------+-------------+------------+
| Share premium | 8 | 22,274 | 22,274 | 22,274 |
+------------------------------------------+-------+-------------+-------------+------------+
| Treasury shares | | (4,667) | (4,667) | (4,667) |
+------------------------------------------+-------+-------------+-------------+------------+
| Share held by employee benefit trust | | (2,762) | (2,761) | (2,762) |
+------------------------------------------+-------+-------------+-------------+------------+
| Translation reserve | | 2,287 | 263 | 2,868 |
+------------------------------------------+-------+-------------+-------------+------------+
| Retained earnings | | 39,491 | 24,893 | 32,335 |
+------------------------------------------+-------+-------------+-------------+------------+
| Total equity | | 58,542 | 41,921 | 51,967 |
+------------------------------------------+-------+-------------+-------------+------------+
+--------------------------------------+-------------+-------------+------------+
| Consolidated Cash Flow Statement for the six months ended 30 September 2009 |
| |
+-------------------------------------------------------------------------------+
| | Six months | Six months | Year ended |
| | ended 30 | ended 30 | 31 March |
| | September | September | 2009 |
| | 2009 | 2008 | (audited) |
| | (unaudited) | (unaudited) | |
+--------------------------------------+-------------+-------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+-------------+-------------+------------+
| Cashflows from operating activities | | | |
+--------------------------------------+-------------+-------------+------------+
| Result for the period before tax | 13,666 | 8,795 | 21,329 |
+--------------------------------------+-------------+-------------+------------+
| Depreciation | 320 | 289 | 614 |
+--------------------------------------+-------------+-------------+------------+
| Amortisation | 1,913 | 2,148 | 4,299 |
+--------------------------------------+-------------+-------------+------------+
| Impairment losses | | | |
+--------------------------------------+-------------+-------------+------------+
| -intangible assets | - | 112 | 505 |
+--------------------------------------+-------------+-------------+------------+
| -property, plant and equipment | - | - | 244 |
+--------------------------------------+-------------+-------------+------------+
| Equity settled share options/rewards | 212 | 109 | 309 |
+--------------------------------------+-------------+-------------+------------+
| Profit/(loss) on disposal of assets | | | |
+--------------------------------------+-------------+-------------+------------+
| -property, plant and equipment | 10 | (26) | 15 |
+--------------------------------------+-------------+-------------+------------+
| Finance costs | - | - | 4 |
+--------------------------------------+-------------+-------------+------------+
| Finance income | (264) | (555) | (1,096) |
+--------------------------------------+-------------+-------------+------------+
| | 15,857 | 10,872 | 26,223 |
+--------------------------------------+-------------+-------------+------------+
| Increase in inventories | 2,372 | (843) | (2,543) |
+--------------------------------------+-------------+-------------+------------+
| Increase in trade and other | (2,420) | (1,029) | (1,805) |
| receivables | | | |
+--------------------------------------+-------------+-------------+------------+
| Increase/(decrease) in provisions, | (1,470) | 1,918 | 713 |
| trade payables and other liabilities | | | |
+--------------------------------------+-------------+-------------+------------+
| Taxes paid | (1,463) | (2,532) | (9,734) |
+--------------------------------------+-------------+-------------+------------+
| Net cash from operating activities | 12,876 | 8,386 | 12,854 |
+--------------------------------------+-------------+-------------+------------+
| Cash flows from investing activities | | | |
+--------------------------------------+-------------+-------------+------------+
| Additions | | | |
+--------------------------------------+-------------+-------------+------------+
| -intangible assets | (441) | (4) | (950) |
+--------------------------------------+-------------+-------------+------------+
| -property, plant and equipment | (350) | (466) | (1,381) |
+--------------------------------------+-------------+-------------+------------+
| Proceeds on disposal of assets | | | |
+--------------------------------------+-------------+-------------+------------+
| -property, plant and equipment | 16 | 36 | 44 |
+--------------------------------------+-------------+-------------+------------+
| Proceeds on maturity of held to | - | - | 377 |
| maturity investments | | | |
+--------------------------------------+-------------+-------------+------------+
| Interest received | 264 | 555 | 1,096 |
+--------------------------------------+-------------+-------------+------------+
| Net cash from investing activities | (511) | 121 | (814) |
+--------------------------------------+-------------+-------------+------------+
| Cash flows from financing activities | | | |
| | | | |
+--------------------------------------+-------------+-------------+------------+
| Purchase of shares by employee | - | (822) | (823) |
| benefit trust | | | |
+--------------------------------------+-------------+-------------+------------+
| Interest paid | - | - | (4) |
+--------------------------------------+-------------+-------------+------------+
| Dividends paid | (2,023) | (1,936) | (2,948) |
+--------------------------------------+-------------+-------------+------------+
| Net cash from financing activities | (2,023) | (2,758) | (3,775) |
+--------------------------------------+-------------+-------------+------------+
| Net increase in cash and cash | 10,342 | 5,749 | 8,265 |
| equivalents | | | |
+--------------------------------------+-------------+-------------+------------+
| Cash and cash equivalents at | 27,462 | 19,197 | 19,197 |
| beginning of period | | | |
+--------------------------------------+-------------+-------------+------------+
| Cash and cash equivalents at end of | 37,804 | 24,946 | 27,462 |
| period | | | |
+--------------------------------------+-------------+-------------+------------+
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Consolidated statement of changes in equity |
+-----------------------------------------------------------------------------------------------------+
| | Equity attributable to equity holders of |
+----------------------------+------------------------------------------------------------------------+
| | Goldshield Group plc |
+----------------------------+------------------------------------------------------------------------+
| | Share | Share | Own | Translation | Retained | Total |
| | capital | premium | shares | reserve | earnings | equity |
| | (GBP | (GBP'000) | (GBP'000) | (GBP,000) | (GBP'000) | (GBP'000) |
| | '000) | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Balance 1 April 2008 | 1,919 | 22,274 | (6,606) | 691 | 21,092 | 39,370 |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Purchase of shares held by | - | - | (822) | - | - | (822) |
| employee benefit trust | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Employee share based | - | - | - | - | 109 | 109 |
| compensation | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Dividends paid | - | - | - | - | (1,936) | (1,936) |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Transactions with owners | - | - | (822) | - | (1,827) | (2,649) |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Profit for the period | - | - | - | - | 5,628 | 5,628 |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Other comprehensive income | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Currency translation | - | - | - | (595) | - | (595) |
| differences | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Deferred tax on | - | - | - | 167 | - | 167 |
| translation reserve | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Total comprehensive income | - | - | - | (428) | 5,628 | 5,200 |
| | | | | | | |
| for the period | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Balance at 30 September | 1,919 | 22,274 | (7,428) | 263 | 24,893 | 41,921 |
| 2008 | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Balance 1 April 2008 | 1,919 | 22,274 | (6,606) | 691 | 21,092 | 39,370 |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Purchase of shares held by | - | - | (823) | - | - | (823) |
| | | | | | | |
| employee benefit trust | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Employee share based | - | - | - | - | 309 | 309 |
| compensation | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Dividends paid | - | - | - | - | (2,948) | (2,948) |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Transactions with owners | - | - | (823) | - | (2,639) | (3,462) |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Profit for the period | - | - | - | - | 13,882 | 13,882 |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Other comprehensive income | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Currency translation | - | - | - | 3,024 | - | 3,024 |
| differences | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Deferred tax on | - | - | - | (847) | | (847) |
| translation reserve | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Total comprehensive income | - | - | - | 2,177 | 13,882 | 16,059 |
| | | | | | | |
| for the period | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Balance at 31 March 2009 | 1,919 | 22,274 | (7,429) | 2,868 | 32,335 | 51,967 |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Balance 1 April 2009 | 1,919 | 22,274 | (7,429) | 2,868 | 32,335 | 51,967 |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Employee share based | - | - | - | - | 212 | 212 |
| compensation | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Dividends paid | - | - | - | - | (2,023) | (2,023) |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Transactions with owners | - | - | - | - | (1,811) | (1,811) |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Profit for the period | - | - | - | - | 8,967 | 8,967 |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Other comprehensive income | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Currency translation | - | - | - | (807) | - | (807) |
| differences | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Deferred tax on | - | - | - | 226 | | 226 |
| translation reserve | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Total comprehensive income | - | - | - | (581) | 8,967 | 8,386 |
| | | | | | | |
| for the period | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
| Balance at 30 September | 1,919 | 22,274 | (7,429) | 2,287 | 39,491 | 58,542 |
| 2009 | | | | | | |
+----------------------------+----------+-----------+-----------+-------------+-----------+-----------+
Notes to the Interim Financial Statement
1. Principal accounting policies
Statement of compliance
The interim financial statement has been prepared in accordance with
International Accounting Standard 34 "Interim Financial Reporting". It does not
include all of the information required for full annual financial statements,
and should be read in conjunction with the consolidated financial statement of
the Group as at and for the year ended 31 March 2009.
Adoption of IFRS Interpretations, new and amendments to IFRS
- Applicable for the Group's accounting periods beginning on or after 1 April
2009
At the date of approval of these financials statements, the following standards,
interpretations and amendments thereto were issued that are mandatory for the
Group's accounting periods beginning on or after 1 April 2009. Management
assessed the relevance of these amendments and interpretations and concluded
that they are either not relevant or material to the Group or resulted in
additional disclosures.
International Financial Reporting Interpretations Committee (IFRIC)
interpretations
- IFRIC 15 Agreements for the Construction of Real Estate (effective 1 January
2010)
- IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective 1 July
2009)
- IFRIC 17 Distributions of Non-cash Assets to Owners (effective 1 July 2009)
- IFRIC 18 Transfers of Assets from Customers (effective prospectively for
transfers on or after 1 July 2009)
Amendments to existing standards
- Improvements to IFRSs (effective 1 July 2009)
International Financial Reporting Standards (IFRS)
- IFRS 3 Business Combinations (Revised 2008) (effective 1 July 2009)
The Group has adopted IAS 1 Presentation of Financial Statements (Revised 2007)
in its consolidated financial statements. This standard has been applied
retrospectively. The adoption of the standard does not affect the financial
position or profits of the Group, however this has resulted in the inclusion of
a Consolidated Statement of Comprehensive Income and formatting of
the Consolidated Balance Sheet and Consolidated Statement of Changes in Equity.
The measurement and recognition of the Group's assets, liabilities, income and
expenses is unchanged, however some items that were recognised directly in
equity are now recognised in other comprehensive income, such as for example
currency translation differences.
Basis of consolidation
The Group financial statements consolidate those of the Company and of its
subsidiary undertakings drawn up to the balance sheet date. A subsidiary is an
entity which the Company controls, which is achieved when the Company has the
power to control the financials and operating policies of an entity. Profits or
losses on intra-group transactions are eliminated in full. The results of the
subsidiary undertakings acquired during the year have been included from the
date of acquisition. On acquisition of a subsidiary, all of the subsidiary's
assets and liabilities which exist at the date of acquisition are recorded at
the fair values reflecting their condition at that date. Goodwill arising on
consolidation, representing the excess of the fair value of the consideration
given over the fair values of the identifiable net assets acquired, is
capitalised net of any provision for impairment. An Employee Benefit Trust
that is controlled by its sponsoring entity, which is the Company in case of the
Group, is consolidated into the financial statements.
Revenue
Revenue from the sale of goods is recognised in the Consolidated Income
Statement when the significant risks and rewards of ownership have been
transferred to the buyer. Revenue is measured at the fair value of the
consideration received/receivable by the Group for goods supplied and
services provided, excluding value added tax and trade discounts. Revenue from
services rendered is recognized in the Consolidated Income Statement by
reference to the stage of completion of transactions at the balance sheet date.
The stage of completion for the Global Solutions - call centre business
is determined by the man days spent on the project for rendering the service at
the end of each billing cycle. Subscription revenue is accrued over the period
of the subscription. Advertising revenue for the Wellbeing media business is
recognised when the related advertisement appears in the magazine.
Intangible assets
Goodwill
All business combinations are accounted for under the purchase method and
goodwill has been recognised on acquisitions of subsidiaries. In respect of
business combinations that have occurred since 1 April 2004, goodwill represents
the difference between the cost of the acquisition and the fair value of the net
identifiable assets acquired. Goodwill is stated at cost less any accumulated
impairment losses. Goodwill arising on acquisitions before 1 April 2004 has been
retained at the previous UK GAAP amounts at 31 March 2004. Goodwill is allocated
to cash generating units and is not amortised but tested for impairment annually
or more frequently if events or changes in circumstances indicate that it might
be impaired.
Other intangible assets
Externally purchased product licences, trademarks, brand-names, know-how and
similar intangible items are capitalised at historical cost, net of any
provision for impairment and amortised on a straight line basis over their
estimated useful economic lives which range between seven and ten years.
The amortisation cost has been included within administrative expenses in the
Consolidated Income Statement.
Software
Acquired software licences are capitalised on the basis of the costs incurred to
acquire and bring into use the specific software. These costs are amortised over
their estimated useful lives between three to five years. The amortisation cost
has been included within administrative expenses in the Consolidated Income
Statement.
Property, plant and equipment
Property, plant and equipment is stated at cost less the accumulated
depreciation. Depreciation is charged on a straight line basis over the
estimated useful lives on the cost of the assets less their residual value. Land
is not depreciated.
The estimated useful lives are as follows:
Freehold buildings and
leasehold improvements - 25 years or over the period of lease
Office equipment - 5 years
Plant and equipment - 6 to 7 years
Motor vehicles - 5 years
Residual values are re-assessed annually.
Directly attributable costs for construction of assets are shown under Capital
work in progress and will be transferred to the relevant category on completion
of construction of the asset. Capital work in progress is carried at cost, less
any recognised impairment loss. Depreciation commences when assets are ready for
their intended use.
Impairment of non-financial assets
Assets that have an indefinite useful life excluding land, for example goodwill,
are not subject to amortisation and are tested annually for impairment. Assets
that are subject to amortisation are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the
asset's carrying amount exceeds its recoverable amount. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash generating units). An impairment
loss is recognised at the amount by which the asset's or cash generating
unit's carrying amount exceeds its recoverable amount. The recoverable amount is
based on the higher of the fair value less costs to sell and value in use.
If at the balance sheet date there is any indication that an impairment loss
recognised in prior periods for an asset other than goodwill no longer exists,
the recoverable amount is reassessed and the asset is reflected at the
recoverable amount.
Research and development expenditure
Expenditure on development activities is capitalised if the product or process
is technically and commercially feasible, the costs are separately identifiable
and the Group has sufficient resources to complete development. Capitalised
development costs are stated at cost less accumulated amortization and
impairment losses. Capitalised development costs are amortised from the point at
which the asset is ready to use on a straight-line basis over its useful life,
not exceeding five years. All other research and development expenditure is
written off to the Consolidated Income Statement in the period in which it is
incurred.
Inventories
Inventories are stated at the lower of cost and net realisable value. The cost
is determined using the weighted average price method. The cost of finished
goods comprises of product cost, its packaging and applicable duties and taxes.
Net realisable value is the estimated selling price in the ordinary course of
business, less applicable variable selling expenses.
Accounting for income taxes
Current income tax assets and/or liabilities comprise those obligations to, or
claims from, fiscal authorities relating to the current or prior reporting
period, that are unpaid at the balance sheet date. They are calculated according
to the tax rates and tax laws applicable to the fiscal periods to which they
relate, based on the taxable profit for the year.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit and is accounted for using the balance sheet liability method. This
involves comparison of the carrying amount of assets and liabilities in the
consolidated financial statements with their respective tax bases. However,
deferred tax is not provided on the initial recognition of goodwill, nor on the
initial recognition of an asset or liability unless the related transaction is a
business combination or affects tax or accounting profit. Deferred tax
liabilities are always provided for in full. Deferred tax assets and liabilities
are calculated, without discounting, at tax rates that are expected to apply to
the period when asset is realised or the liability is settled, based on tax
rates (tax laws) that have been enacted or substantially enacted by the balance
sheet date. All changes in deferred tax assets or liabilities are recognised as
a component of tax expense in the Consolidated Income Statement, except where
they relate to items that are charged or credited directly to equity (such as
translation reserve and pre 7 November 2002 grants of share options) in which
case the related deferred tax is also charged or credited directly to equity.
Tax losses available to be carried forward as well as other income tax credits
to the Group are assessed for recognition as deferred tax assets. Deferred tax
assets are only recognised to the extent that it is probable that future taxable
profits will be available against which the asset can be recognised and
are reduced to the extent that it is no longer probable that the related tax
benefit will be realised.
Deferred income tax is provided on temporary differences arising on investments
in subsidiaries except where the timing of the reversal of the temporary
differences is controlled by the Group and it is probable that the temporary
difference will not reverse in the foreseeable future.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an
original maturity of three months or less. Bank overdrafts that are repayable on
demand and form an integral part of the Group's cash management are included as
a component of cash.
Employee benefit trust
The assets and liabilities of the Employee Benefit Trust (EBT) have been
included in the consolidated financial statements. Any assets held by the EBT
cease to be recognised on the Consolidated Balance Sheet when the assets vest
unconditionally in identified beneficiaries.
The costs of purchasing own shares held by the EBT are shown as a deduction
against equity. The proceeds from the sale of own shares held increase equity.
Neither the purchase nor sale of own shares leads to a gain or loss being
recognised in the Consolidated Income Statement.
Employee benefits
The Group operates a defined contribution pension scheme whereby contributions
are made to individual employee pension plans of certain employees. These costs
are charged against profits in respect of the accounting period in which they
are paid.
Indian gratuity costs, which represent a form of long term service benefits are
accrued based on actuarial valuation at the balance sheet date, carried out by
an independent actuary.
Leased assets
All leased assets are identified as operating leases if they do not transfer
substantially all the risks and rewards to the lessee.
Payments made under operating leases are charged to the Consolidated Income
Statement on a straight line basis over the period of the lease.
Foreign currencies
The reporting currency for these financial statements is GB sterling (GBP) which
is the parent Company's functional currency.
Transactions in foreign currencies are translated at the exchange rate ruling at
the date of the transaction into the parent company's presentational currency.
Monetary assets and liabilities in foreign currencies are translated at the
rates of exchange ruling at the balance sheet date. Foreign exchange differences
arising on translation are recognised in profit or loss. Non monetary assets and
liabilities that are measured in terms of historical cost in a foreign entity
are translated using the exchange rate at the date of the transaction.
All assets and liabilities in the financial statements of foreign subsidiaries
are translated at the closing rate at the balance sheet date. The results of
foreign operations have been converted into Group's reporting currency at the
actual rates over the reporting period and the exchange differences arising have
been taken to translation reserve, a component of equity. The exchange
differences arising from re-translation of the net investments in subsidiaries
are directly taken to translation reserve.
Share options
For all employee share options an expense is recognised in the Consolidated
Income Statement with a corresponding credit to equity. The equity share based
payment is measured at the fair value at the grant date using the binomial
lattice method. If vesting periods or other vesting conditions apply, the
expense is allocated over the vesting period, based on the best available
estimate of the number of share options expected to vest.
Long-term share incentive plan
As soon as practicable after the start of each performance period, each eligible
participant will be notified about the number of shares awarded to him/her in
respect of that period. The participant will also be informed about the form of
the award, the performance targets to be achieved in relation to the performance
period and any other conditions to which the award may be subject. The
fair value of the share awards granted is recognised as an employee expense with
a corresponding increase in equity. The fair value is measured at each award
date and spread over the period during which the participants become
unconditionally entitled to the awards. The fair value of the share awards is
measured using a binomial model, taking into account the terms and conditions
upon which the shares will be released to the participants.
Provisions - Legal and other disputes
Provision is made where a reliable estimate can be made of the likely outcome of
legal or other disputes against the Group. In addition, provision is made for
legal and other expenses arising from claims received or other disputes. No
provision is made for other possible claims or where an obligation exists but it
is not possible to make a reliable estimate. Costs associated with claims
made by the Group against third parties are charged to the Consolidated Income
Statement as they are incurred. The provisions are not discounted as the impact
is not material.
Exceptional legal and professional costs
Exceptional legal and professional costs are expenditure incurred and provided
for defending the legal claims against the Group by the Department of Health and
the Serious Fraud Office.
Dividends
Dividends proposed or declared after the balance sheet dates are not recognised
as a liability. However the amounts of such dividends are disclosed in the
financial statements.
Segmental reporting
A segment is a distinguishable component of the Group that is engaged either in
providing products or services (business segment) or in providing products or
services within a particular economic environment (geographic segment) which is
subject to risks and rewards that are different from those of other segments.
Financial instruments
Financial assets and financial liabilities are recognised on the Consolidated
Balance Sheet when the Group becomes a party to the contractual terms of the
instrument.
Held to maturity investments
Held to maturity investments are non-derivative financial assets with fixed or
determinable payments and a fixed date of maturity where it is the intention of
the Directors to hold them until maturity. Held to maturity investments are
measured subsequent to initial recognition at amortised cost using the effective
interest method. If there is objective evidence that the investment has been
impaired, the financial asset is measured at the present value of estimated cash
flows. Any changes to the carrying amount of the investment are recognised in
the Consolidated Income Statement.
Loans and receivables
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less provision
for impairment. A provision for impairment of trade receivables is established
when there is objective evidence that the Group will not be able to collect all
amounts due according to the original terms of the receivables. Significant
financial difficulties of the debtor, probability that the debtor will enter
bankruptcy or financial reorganisation, and default or delinquency in payments
(more than 60 days overdue) are considered indicators that the trade receivable
is impaired. The amount of the provision is the difference between the asset's
carrying amount and the present value of estimated future cash flows, discounted
at the original effective interest rate. The carrying amount of the asset is
reduced through the use of an allowance account, and the amount of the loss is
recognised in the Consolidated Income Statement within 'Other administrative
expenses'. When a trade receivable is uncollectible, it is written off against
the allowance account for trade receivables. Subsequent recoveries of amounts
previously written off are credited against 'Other administrative expenses' in
the Consolidated Income Statement.
Bank borrowings
Interest bearing bank loans and overdrafts are recorded at fair values on
initial recognition. Finance charges including premiums payable on settlement or
redemption and direct issue costs, are accounted for on an accruals basis to the
Consolidated Income Statement using the effective interest method and are added
to the carrying value of the instrument to the extent that they are not
settled in the period in which they arise.
Trade payables
Trade payables are not interest bearing and are initially stated at their fair
values and thereafter at amortised cost.
Equity instruments
Equity instruments issued by the Group are recorded at the proceeds received,
net of direct issue costs.
Equity comprises of the following:
- Share capital - represents the nominal value of equity shares
- Share premium - represents the excess over nominal value of fair value of
consideration
- Treasury shares - represents purchase of the Company's equity share capital,
the consideration paid, including any transaction costs and is deducted from
total shareholders' equity
- Shares held by Employee Benefit Trust - represents amounts paid for shares of
the Company held by the Employee Benefit Trust of the Long-Term Incentive Plan
- Retained earnings - represents the accumulated retained profits
- Translation reserve - represents gains or losses on foreign currency
differences arising on consolidation of the net investment in subsidiaries.
2. Segmental Reporting
Segment information is presented in the interim financial statement in respect
of the Group's business segments, which are the primary basis of segment
reporting. The business segment-reporting format reflects the Group's management
and internal reporting structure.
Primary - Business segments
The Group is organised into five major business units - Retail Brands, Retail
Generics, Hospitals, Consumer Health Europe (CH E) and, Consumer Health North
America (CH NA). Certain other business units like Country Distributors, Global
Services, Wellbeing Centre, Wellbeing Villages, Resorts and Management Services
constitute the other segments. These units form the basis for the
Group's reporting of primary segment information.
Segment results
Segment results include items directly attributable to a segment as well as
those that can be allocated on a reasonable basis.
All inter-segment transfers are priced and carried out at arm's length.
Unallocated segment income and expenses
Unallocated segment income comprises interest income and miscellaneous receipts
not directly attributable to any particular segment. Unallocated segment
expenditure represents interest on loans and provision for income taxes, which
cannot be directly attributed to any segment.
+------------------------+----------+------+---+-------+---+-----+---+-----+---+------+---+---+---------+
| Primary segment disclosure - Business segments |
+-------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+------------------------+-----------------+-----------+---------+---------+----------+-------+---------+
| Six months ended | Retail | Retail | Hospitals | CH E | CH NA | Other | Total |
| 30 September 2009 | Brands | Generics | GBP'000 | GBP'000 | GBP'000 | Segments | GBP'000 |
| | GBP'000 | GBP'000 | | | | GBP'000 | |
+------------------------+ + + + + + + +
| | | | | | | | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Revenue | | | | | | | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| External Sales | 25,253 | 6,465 | 6,303 | 7,831 | 4,425 | 3,658 | 53,935 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Total revenue | 25,253 | 6,465 | 6,303 | 7,831 | 4,425 | 3,658 | 53,935 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Result | | | | | | | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Segment result | 11,437 | 2,851 | 1,556 | (282) | (440) | (1,720) | 13,402 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Operating profit | | | | | | | 13,402 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Finance costs | | | | | | | - |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Finance Income | | | | | | | 264 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Income tax expense | | | | | | | (4,699) |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Profit for the period | | | | | | | 8,967 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| | | | | | | | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Six months ended | Retail | Retail | Hospitals | CH E | CH NA | Other | Total |
| 30 September 2008 | Brands | Generics | | | | Segments | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Revenue | | | | | | | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| External Sales | 22,022 | 6,057 | 6,289 | 9,072 | 2,895 | 3,816 | 50,151 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Total revenue | 22,022 | 6,057 | 6,289 | 9,072 | 2,895 | 3,816 | 50,151 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Result | | | | | | | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Segment result | 6,309 | 1,919 | 1,715 | (1,222) | (628) | 147 | 8,240 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Operating profit | | | | | | | 8,240 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Finance costs | | | | | | | - |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Finance income | | | | | | | 555 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Income tax expense | | | | | | | (3,167) |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Profit for the period | | | | | | | 5,628 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| | | | | | | | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Year ended | Retail | Retail | Hospitals | CH E | CH NA | Other | Total |
| 31 March 2009 | Brands | Generics | | | | Segments | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Revenue | | | | | | | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| External sales | 43,014 | 11,497 | 13,259 | 16,318 | 6,622 | 7,687 | 98,397 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Total revenue | 43,014 | 11,497 | 13,259 | 16,318 | 6,622 | 7,687 | 98,397 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Result | | | | | | | |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Segment result | 15,773 | 3,753 | 3,745 | (3,266) | (607) | 839 | 20,237 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Operating profit | | | | | | | 20,237 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Finance costs | | | | | | | (4) |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Finance income | | | | | | | 1,096 |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Income tax expense | | | | | | | (7,447) |
+------------------------+----------+----------+-----------+---------+---------+----------+-------------+
| Profit for the period | | | | | | | 13,882 |
+------------------------+----------+------+---+-------+---+-----+---+-----+---+------+---+---+---------+
3. Tax on profit on ordinary activities
Tax on profits on ordinary activities is calculated at the standard rate of
corporation tax in the United Kingdom of 28%.
The taxation charge of GBP4.70 million (2008: GBP3.17 million) represents an
effective tax rate of 34.4% (2008: 36.0%).
4. Equity dividends
The amount of GBP2.02 million pertaining to the final dividend proposed as at 31
March 2009 has been paid on 19 August 2009.
The Directors have not declared an interim dividend for the period ended 30
September 2009 (2008/09 interim dividend: 2.9 pence, 2008/09 final dividend: 5.8
pence).
5. Earnings per share
The earnings are based on the earnings attributable to ordinary shareholders and
the weighted average number of shares is based on ordinary shares outstanding
during the period.
+--------------------------------------+--------------+--------------+
| | Basic | Diluted |
| | Earnings | earnings |
| | per share | per share |
+--------------------------------------+--------------+--------------+
| Six months to 30 September 2009 | 8,967 | 8,967 |
| earnings (GBP'000) | | |
+--------------------------------------+--------------+--------------+
| Weighted average number of share | 34,883 | 34,883 |
| (000) | | |
+--------------------------------------+--------------+--------------+
| Per share amount (pence) | 25.7 | 25.7 |
+--------------------------------------+--------------+--------------+
| Six months to 30 September 2008 | 5,628 | 5,628 |
| earnings(GBP'000) | | |
+--------------------------------------+--------------+--------------+
| Weighted average number of share | 35,149 | 35,151 |
| (000) | | |
+--------------------------------------+--------------+--------------+
| Per share amount (pence) | 16.0 | 16.0 |
+--------------------------------------+--------------+--------------+
| Year ended 31 March 2009 earnings | 13,882 | 13,882 |
| (GBP '000) | | |
+--------------------------------------+--------------+--------------+
| Weighted average number of share | 34,989 | 34,989 |
| (000) | | |
+--------------------------------------+--------------+--------------+
| Per share amount (pence) | 39.7 | 39.7 |
+--------------------------------------+--------------+--------------+
6. Intangible assets
+------------------------------------+----------+----------+----------+----------+----------+
| | Brand | Goodwill | Software | Capital | Total |
| | names | GBP'000 | GBP'000 | work in | GBP'000 |
| | know-how | | | progress | |
| | licences | | | GBP'000 | |
| | and | | | | |
| | trade | | | | |
| | marks | | | | |
| | GBP'000 | | | | |
+------------------------------------+----------+----------+----------+----------+----------+
| Cost | | | | | |
+------------------------------------+----------+----------+----------+----------+----------+
| At 1 April 2009 | 64,591 | 33,316 | 108 | 884 | 98,899 |
+------------------------------------+----------+----------+----------+----------+----------+
| Exchange differences | (84) | (2,276) | (4) | (32) | (2,396) |
+------------------------------------+----------+----------+----------+----------+----------+
| Additions | - | - | 11 | 430 | 441 |
+------------------------------------+----------+----------+----------+----------+----------+
| Transfers | - | - | 1,282 | (1,282) | - |
+------------------------------------+----------+----------+----------+----------+----------+
| Adjustment to purchase | (297) | - | - | - | (297) |
| consideration | | | | | |
+------------------------------------+----------+----------+----------+----------+----------+
| At 30 September 2009 | 64,210 | 31,040 | 1,397 | - | 96,647 |
+------------------------------------+----------+----------+----------+----------+----------+
| At 1 April 2008 | 64,431 | 26,921 | 39 | - | 91,391 |
+------------------------------------+----------+----------+----------+----------+----------+
| Exchange differences | 2 | 707 | (3) | - | 706 |
+------------------------------------+----------+----------+----------+----------+----------+
| Additions | - | - | 4 | - | 4 |
+------------------------------------+----------+----------+----------+----------+----------+
| At 30 September 2008 | 64,433 | 27,628 | 40 | - | 92,101 |
+------------------------------------+----------+----------+----------+----------+----------+
| Amortisation and impairment losses | | | | | |
+------------------------------------+----------+----------+----------+----------+----------+
| At 1 April 2009 | 60,023 | 23,928 | 42 | - | 83,993 |
+------------------------------------+----------+----------+----------+----------+----------+
| Exchange differences | (84) | (2,082) | - | - | (2,166) |
+------------------------------------+----------+----------+----------+----------+----------+
| Amortisation | 1,838 | - | 75 | - | 1,913 |
+------------------------------------+----------+----------+----------+----------+----------+
| At 30 September 2009 | 61,777 | 21,846 | 117 | - | 83,740 |
+------------------------------------+----------+----------+----------+----------+----------+
| At 1 April 2008 | 55,581 | 18,391 | 3 | - | 73,975 |
+------------------------------------+----------+----------+----------+----------+----------+
| Exchange differences | 1 | 673 | - | - | 674 |
+------------------------------------+----------+----------+----------+----------+----------+
| Amortisation | 2,142 | - | 6 | - | 2,148 |
+------------------------------------+----------+----------+----------+----------+----------+
| Impairment losses | - | 112 | - | - | 112 |
+------------------------------------+----------+----------+----------+----------+----------+
| At 30 September 2008 | 57,724 | 19,176 | 9 | - | 76,909 |
+------------------------------------+----------+----------+----------+----------+----------+
| Carrying amounts | | | | | |
+------------------------------------+----------+----------+----------+----------+----------+
| At 30 September 2009 | 2,433 | 9,194 | 1,280 | - | 12,907 |
+------------------------------------+----------+----------+----------+----------+----------+
| At 30 September 2008 | 6,709 | 8,452 | 31 | - | 15,192 |
+------------------------------------+----------+----------+----------+----------+----------+
| At 31 March 2009 | 4,568 | 9,388 | 66 | 884 | 14,906 |
+------------------------------------+----------+----------+----------+----------+----------+
Impairment losses includes GBP112,000 as at 30 September 2008 and GBP505,000 as
at 31 March 2009 (GBP486,000 for the Regina Health Limited business and
GBP19,000 for software). The impairment charge for the current period is GBPnil.
7. Property, plant and equipment
During the period ended 30 September 2009 the Group acquired assets with a cost
of GBP350,000 (30 September 2008: GBP466,000, 31 March 2009: GBP1,381,000).
Assets with a carrying value of GBP101,000 were disposed of during the period
ended 30 September 2009 (30 September 2008: GBP10,000, 31 March 2009:
GBP2,703,000) resulting in a gain on disposal of GBP10,000 (30 September 2008:
GBP26,000, 31 March 2009: loss of GBP15,000).
There is no impairment provision for the period ended 30 September 2009 (30
September 2008: GBPnil, 31 March 2009: GBP244,000).
8. Share capital
+------------------------------+---------+--------------+--------------+--------------+
| | | Ordinary | Ordinary | Share |
| | | shares | shares | premium |
| | | of 5 pence | of 5 pence | GBP'000 |
| | | GBP'000 | GBP'000 | |
+------------------------------+---------+--------------+--------------+--------------+
| Authorised | | | | |
+------------------------------+---------+--------------+--------------+--------------+
| At 30 September 2008, 31 | | 100,000 | 5,000 | - |
| March 2009 and 30 September | | | | |
| 2009 | | | | |
+------------------------------+---------+--------------+--------------+--------------+
| Allotted, called up and | | | | |
| fully paid | | | | |
+------------------------------+---------+--------------+--------------+--------------+
| At 30 September 2008, 31 | | 38,367 | 1,919 | 22,274 |
| March 2009 and 30 September | | | | |
| 2009 | | | | |
+------------------------------+---------+--------------+--------------+--------------+
There were no shares issued during the period ended 30 September 2009.
9. Contingent liabilities
Indemnities and guarantees
The Group has given indemnities in respect of advance payments, deferred
purchase consideration and import duty guarantees issued on its behalf in the
normal course of business. The indemnities given at 30 September 2009 were
GBP687,000 (30 September 2008: GBP573,000, 31 March 2009: GBP688,000).
10. Preparation of Interim Financial Statement
The interim financial statement is unaudited but has been reviewed by the
auditors and their report is set out on page 20. The financial information does
not constitute statutory accounts within the meaning of section 435 of the
Companies Act 2006. Statutory accounts for Goldshield Group plc for the year
ended 31 March 2009 on which the auditors gave an unqualified report have been
delivered to the Registrar of Companies. The accounting policies and
presentation of figures in the interim financial statement are consistent with
those in the last annual accounts except IAS1 "Presentation of Financial
Statement (Revised 2007)" has been adopted. This has resulted in the inclusion
of a Consolidated Statement of Comprehensive Income and formatting of the
Consolidated Balance Sheet and Consolidated Statement of Changes in Equity.
The Annual report is available on the company's website at www.goldshieldplc.com
11. Approval of Interim Financial Statement
The interim financial statement was approved by the Board of Directors on 27
November 2009. Copies of this statement will be available to members of the
public, free of charge, from the Company at No.1 Croydon, 12-16 Addiscombe Road,
Croydon, Surrey, CR0 0XT or on the Company's website at www.goldshieldplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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