TIDMPGY
RNS Number : 6402I
Progility PLC
27 March 2015
7am, 27 March 2015
Progility plc
("Progility" or "the Group")
Interim Results
Progility plc (AIM: PGY) the systems integrator and project
management services firm is pleased to announce its Interim Results
for the six months to 31 December 2014.
The results for the six months to 31 December 2014 show
significant growth in sales, up just over 30% on the comparable
period last year, but this does not reflect the scale of the Group
we now have. Taking into account the recent acquisitions, the
business has almost doubled in size compared to the beginning of
the financial year.
Highlights - Strong revenue growth and significant expansion
-- Revenues up to GBP24.4 million (2013: GBP18.6 million)
-- Gross profit up to GBP7.8 million (2013: GBP5.3 million)
-- Operating loss before highlighted items GBP0.1 million (2013: Loss GBP0.1 million)
-- Gain on Indian acquisition included in income statement GBP3.2 million
-- Profit before tax GBP1.5 million (2013: Loss GBP1.1 million)
-- Underlying loss before tax GBP1.1million (2013: Loss GBP0.5 million)
-- Operationally:
- Gross margin improvement to 32% from 28%
-- Three acquisitions since start of current financial year
- On 11 July 2014 acquired Starkstrom Group Ltd for GBP9.7 million
- On 30 December 2014 acquired Unify Enterprise Communications
Pvt Ltd, an India based telecoms integrator for GBP0.8 million
- On 5 January 2015 completed the acquisition of Woodspeen Training Ltd for GBP0.4 million
Wayne Bos, Executive Chairman, commented:
"Our strategic objective to grow the group has borne
considerable fruit in the six month period under review. With the
additions of Starkstrom and, at the end of the period, Unify
Enterprise Communications in India and Woodspeen Training, the
Group has all but doubled in size during the period.
While the results for the period do not contain contributions
from either India or Woodspeen, nevertheless they do show revenues
increased by over 30% and gross profit has improved by 47% over the
comparable period in 2013.
As we have previously stated, however, the Group's performance
is second-half weighted. The out-turn for the year to 30 June 2015
is heavily dependent on trading in the last four months of our
year, which are critical months for sales across the major
businesses of the Group, particularly in the UK and Australia.
We expect to continue our strategy of transformation and
repositioning over the next six months."
Enquiries:
Progility plc
Wayne Bos, Executive Chairman 020 7371 4444
John McIntosh, Finance
Director
SPARK Advisory Partners
Limited (Nominated Advisor)
Mark Brady 020 3368 3551
Sean Wyndham-Quin 020 3368 3555
W H Ireland Limited (Broker)
Adrian Hadden/Mark Leonard 020 7220 1666
Executive Chairman and Financial Review
Introduction
The results for the six months to 31 December 2014 show
significant growth in sales, up just over 30% on the comparable
period last year, but this does not reflect the scale of the Group
we now have. Taking into account the recent acquisitions, the
business has almost doubled in size compared to the beginning of
the financial year.
Highlights
-- Revenues up to GBP24.4 million (2013: GBP18.6 million)
-- Gross profit up to GBP7.8 million (2013: GBP5.3 million)
-- Operating loss before highlighted items GBP0.1 million (2013: Loss GBP0.1 million)
-- Gain on acquisition included in income statement GBP3.2 million
-- Profit before tax GBP1.5 million (2013: Loss GBP1.1 million)
-- Underlying loss before tax GBP1.1million (2013: Loss GBP0.5 million)
This level of expansion is both exhilarating and sobering in
equal measure. The potential for the future development of the
business is exciting, particularly in the businesses we have
acquired in the last 12 months.
Our strategic vision remains to build a technology-led project
management business of scale with an increasing focus on exploiting
the industry segments where we now have particular strength.
We should also recognise that as we expand our management
requirements will be increased. But with increased scale our
ability to attract the necessary talent will also improve.
Overview
The Group now has a significant business presence in the UK,
India and Australia. From these platforms we are well placed to
grow our businesses in the Middle East, Africa and Asia.
With scale, however, come other issues such as management,
integration and re-positioning, which we can control, and others,
such as exposure to currency movements and international economic
and business trends, over which we have little or no control.
We have invested significant management time and money to
position the business to address growth markets and improve our
cost base which, we believe, will deliver future benefits. We
expect the fruits of this work to become visible in the near
term.
Strategic Development
In our strategic report as part of our Annual Report and
Accounts for the year to 30 June 2014 we identified four key
strategic objectives and measures of performance:
-- Corporate Transaction Activity - to expand our presence in
current markets and add value elsewhere
-- Internal Growth - to increase growth from our broader product portfolio
-- Brand recognition and corporate profile - to integrate our
brands and increase brand awareness
-- Developing Capability - promoting talent to ensure capacity to develop the business
We have made good progress in each of these areas.
Corporate Transaction Activity: The acquisition of Starkstrom
Group Limited ("Starkstrom") has provided a new focus for our
services in the international healthcare market. We believe that
the acquisition of Unify Enterprise Communications Pvt Ltd in
India, now known as Progility Technologies Pvt Ltd ("Progility
India"), provides the group with a sophisticated platform which
will not only add strength to the existing Progility Technologies
offering in Australia but will also allow Starkstrom access to the
significant Indian market. We believe that our acquisition of
Woodspeen Training Limited ("Woodspeen") has extended our training
capabilities in the UK to vocational skills and training for
younger adults and will give us access to a new and important
sector of the UK domestic training market.
Internal Growth: During the period Healthcare has become an
important market vertical for us. Across the Group we now provide
products and services to over 450 hospitals globally. We have done
a great deal of work in the Middle East in training, consulting and
health care. We believe this region will continue to drive organic
growth within the Group. India is for us a new and exciting market
and, while we do not underestimate the challenges of doing business
in India, we believe it will become a further significant area
driving organic growth across the Group. The UK also presents
opportunities for further growth particularly in healthcare,
training and recruitment.
Brand recognition and corporate profile: The Group now has a
number of strong brands including ILX, Starkstrom and Woodspeen.
Significant progress has also been made in the profile of the
Progility brand and we have made considerable strides in the
integration of our existing businesses to present "one Progility",
an approach which is creating tangible results in forming deeper
relationships with our larger customers through providing multiple
lines of service to each of them.
Developing Capability: Our acquisitions during the period have
each brought existing management teams. Where necessary these have
been supported by additional recruitment. We aim to continue
providing a rewarding and stimulating environment to strengthen our
talent pool and capability. Obtaining appropriate talent to
strengthen the Group's capability will be one of our future
challenges as the group expands and improvements in the wider
economy intensify competition for good people.
This level of growth comes at a cost however and these costs are
reflected in our results.
Our acquisitions have been funded through borrowing from our
largest shareholder which remains supportive of our activities. In
addition, during the period the Group has invested further in
integrating our new acquisitions and re-positioning our existing
operations to maximise the benefits the business can provide.
The Group has again suffered some material adverse currency
translation movement between the Australian Dollar and Sterling.
The impact of the performance of the Australian economy on our
Minerals and Energy division, in particular, has been
disappointing, with, for instance, material projects being delayed
as Chinese demand for iron ore has stagnated. On the other hand the
reforming policies of Prime Minister Modi in India could, however,
provide a welcome boost to our activities in that market. As we
head into a UK general election we believe that spending in the
healthcare and youth training sectors will remain a priority
whatever the outcome.
Acquisitions
Starkstrom has been a trusted and leading supplier, in its areas
of expertise, to the NHS and UK private hospitals for 40 years.
Starkstrom designs, builds and supplies medical equipment for
operating theatres and intensive care units from central control
panels to ceiling pendants supplying power and medical gases,
lighting and operating tables backed by uninterruptible and
independent power supplies. Headquartered in Eastcote, North West
London and with a manufacturing and assembly facility in Leicester,
Starkstrom has 114 employees, including a national network of field
engineers providing maintenance support.
Progility India is a systems integrator and independent solution
provider specialising in communications infrastructure,
applications and services for enterprise customers and is a Tier
One reseller of Unify and Polycom communications products in Asia.
Headquartered in Mumbai, Progility India employs around 240 people
across 21 offices throughout India. It also operates an extensive
distribution network in India, Bangladesh, Nepal, Bhutan and Sri
Lanka.
Woodspeen provides training and skills development to unemployed
learners and a range of apprenticeship and pre-apprenticeship
programmes through a funding agreement with the Skills Funding
Agency. It has recently been accredited as a grade 2 training
provider by Ofsted. It currently operates in areas such as health
& social care, business and administration, customer service,
team leading, retail, IT, and manufacturing. With around 98
employees Woodspeen operates from premises in Bournemouth,
Bradford, Brighton, Halifax and Huddersfield.
Summary of Results
The table below sets out a summary of our results:
Unaudited
Unaudited restated
six months six months
ended 31 ended 31
December December
2014 2013
GBP'000 GBP'000
Revenue 24,438 18,634
============ ============
Gross Margin 7,809 5,301
============ ============
Operating loss before highlighted
items (56) (66)
Highlighted items 2,557 (600)
------------ ------------
Operating profit/(loss) 2,501 (666)
Finance costs (1,038) (481)
------------ ------------
Profit/(Loss) before tax 1,463 (1,144)
============ ============
For the six months to 31 December 2014 the Group delivered
revenues of GBP24.4 million (2013: GBP18.6 million). Revenues were
affected by a material adverse translation movement between the
Australian Dollar and the UK pound, reducing revenues in this
period by approximately GBP0.8 million
The impact from the fall in the Australian Dollar and
comparatively weaker Australian economy has been felt both in the
Progility Technology business and our Training/Consulting
businesses located in Australia. While revenue has been maintained
in our consulting business within the UK, the challenge has been to
ensure we continue to develop new business relationships in the
Training and Technology Solutions brands while keeping our costs
under control. The cost of re-positioning these has been greater
than expected.
Highlighted items
The Group incurred costs and achieved gains during the period
which we have highlighted as non operating items. These include
transaction costs, restructuring costs and other strategic,
non-cash items. Acquisition costs relate to the three acquisitions
made during the period. During the six months to 31 December 2014
we incurred transaction and restructuring costs of GBP413,000 and
impairment and amortisation charges of GBP224,000.
In addition we have recognised a gain on the acquisition of
Unify India, where the initial estimated fair value of assets and
liabilities acquired exceeded the consideration by approximately
GBP3.2 million. No provision has yet been made in respect of
restructuring this business and any amount in this regard will be
provided or incurred in the current half year.
We expect a certain level of non-recurring costs in the second
half. We also expect the impact of our new business units in India
and the UK to contribute only marginally to second half performance
while we re-position them.
Operating performance
The Group's earnings before interest, depreciation, amortisation
and transaction/restructuring costs were GBP0.48 million (2013:
GBP0.28 million). The reconciliation is provided below:
Unaudited
Unaudited restated
six months six months
ended 31 ended 31
December December
2014 2013
GBP'000 GBP'000
Profit/(loss) before
tax 1,463 (1,147)
Add back/(deduct)
highlighted items
(Note 4) (2,557) 600
------------ ------------
(1,094) (547)
Add back
Depreciation 311 154
Amortisation 224 188
Interest 1,038 481
------------ ------------
Adjusted EBITDA 479 276
============ ============
Cash flow, net debt and facilities
Cash flow
Cash generated from operating activities was GBP0.02 million
(2013: GBP0.86 million outflow) largely as a result of debt
repayment in Australia, transaction costs, restructuring costs and
re-positioning activity. The Group continues to generate operating
cash flow from its stock sales, maintenance agreements, e-commerce,
cash sales and from advance payments from customers across the
Group.
It is anticipated that the re-positioning investment will have a
positive effect on future cash flow. The effectiveness of this
investment will be reflected in its impact on the Group's
international business development and on the take up of a wider
platform of goods and services, once this is fully communicated to
our customers.
The Group continues to invest in its product range and also
incurred capital expenditure in the period relating to updates of
the Starkstrom infrastructure and its internal systems and
equipment to improve operating efficiency.
Net debt and facilities
The Group has optimised its use of cash while integrating its
businesses and maintaining focus on its clients' requirements.
At the balance sheet date the Group's debt comprised GBP1.0
million by way of a fixed term facility, GBP2.0 million of invoice
discounting facility, GBP2.7m of third party loan and GBP13.4
million of shareholder loans (including convertible loan notes) and
standard bank overdraft of GBP0.3 million. At the same date the
Group's cash and cash equivalents amounted to GBP4.6 million.
Shareholder loans
The Group's acquisitions have been funded entirely through the
issue of 12% Notes which were listed on the Channel Islands
Securities Exchange (CISE) in December 2014.
The subscriber for all of these notes has been DNY Investments
Limited, a company which is an asset of the DNY Trust, a family
trust of which Wayne Bos, Executive Chairman, is a discretionary
beneficiary and of which Praxis Trustees Limited, the Company's
controlling shareholder, is trustee. Praxis Trustees remain
supportive of the Company's strategy.
Dividend
The Board does not recommend a dividend for the period ended 31
December 2014. Given the Group's strategic direction, the Board
does not foresee the Company paying a dividend for the foreseeable
future.
Outlook
The Board believes that the Group's operations in Australia, the
UK, India and the Middle East will progress in the second half of
the year.
As we have stated previously, the Group's performance is
second-half weighted. In addition the second half will see
contributions from both Woodspeen and Progility India. Nonetheless
the outcome for the full year will continue to present challenges
including the pace of delivery on major contracts in Australia and
on-going improvements in the performance of the training
business.
By order of the Board
Wayne Bos John McIntosh
Executive Chairman Finance Director
26 March 2015
Unaudited
Unaudited restated Audited
six months six months 12 months
Consolidated Statement ended ended ended
of comprehensive 31 December 31 December 31 June
income 2014 2013 2014
Note GBP000 GBP000 GBP000
Revenue 24,438 18,634 38,786
Cost of Sales (16,629) (13,333) (27,354)
Gross profit 7,809 5,301 11,432
Administrative expenses
- excluding highlighted
items (7,865) (5,367) (8,784)
Administrative expenses
- highlighted items 4 2,557 (600) (1,989)
-------------------------- ----- ------------- ------------- ------------
Total administrative
expenses (5,308) (5,967) (10,773)
Operating profit/(loss)
before highlighted
items 3 (56) (66) 2,648
Administrative expenses-
highlighted items 4 2,557 (600) (1,989)
-------------------------- ----- ------------- ------------- ------------
Operating profit/(loss) 3 2,501 (666) 659
Finance income - - -
Finance costs (1,038) (481) (984)
Profit/(Loss) before
tax and highlighted
items (1,094) (547) 1,664
Highlighted items 2,557 (600) (1,989)
-------------------------- ----- ------------- ------------- ------------
Profit/(Loss) before
tax 1,463 (1,147) (325)
Tax (charge) benefit - 356 11
Profit/(Loss) for
the period attributable
to equity shareholders 1,463 (791) (314)
Other comprehensive
income (70) (53) (44)
Total comprehensive
profit/(loss) 1,393 (844) (358)
Earnings/(Loss) per
share
Basic 5 0.73 p (0.40) p (0.16) p
Diluted 5 0.71 p (0.40) p (0.16) p
Unaudited
Unaudited restated Audited
six months six months 12 months
ended ended ended
Statement of Financial 31 December 31 December 31 June
Position 2014 2013 2014
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and
equipment 1,560 786 861
Intangible assets 19,811 12,188 11,503
Deferred tax asset 1,691 1,314 1,154
------------- ------------- ------------
Total non-current
assets 23,062 14,288 13,518
Current assets
Inventories 5,092 3,163 3,251
Trade and other receivables 15,592 7,009 7,813
Other current assets 476 283 527
Income tax receivable 82 366 82
Cash and cash equivalents 4,607 1,402 1,798
------------- ------------- ------------
Total current assets 25,849 12,223 13,471
Total assets 48,911 26,511 26,989
============= ============= ============
Current liabilities
Trade and other payables (14,648) (10,407) (10,802)
Contingent consideration (400) (691) (30)
Provisions (1,568) (897) (1,028)
Tax liabilities (4,583) - (55)
Loans and overdrafts (6,359) (3,661) (3,699)
------------- ------------- ------------
Total current liabilities (27,558) (15,656) (15,614)
Non-current liabilities
Loans and overdrafts (13,094) (4,416) (4,575)
Provisions (167) (162) (128)
------------- ------------- ------------
Total non-current
liabilities (13,261) (4,578) (4,703)
-
------------- ------------- ------------
Total liabilities (40,819) (20,234) (20,317)
============= ============= ============
-
Net assets 8,092 6,277 6,672
============= ============= ============
-
Issued share capital 19,967 19,967 19,967
Share premium 114 114 114
Other reserve 75 75 75
Merger reserve (14,854) (14,701) (14,854)
Own shares in trust (50) (50) (50)
Share option reserve 41 15 16
Retained earnings 2,997 965 1,534
Exchange differences
arising on consolidation (198) (108) (130)
------------- ------------- ------------
Total equity 8,092 6,277 6,672
============= ============= ============
Unaudited
Unaudited restated Audited
six months six months 12 months
ended ended ended
31 December 31 December 31 June
Cash flow statement Note 2014 2013 2014
GBP'000 GBP'000 GBP'000
Profit/(Loss)
from continuing
operations 2,501 (666) 659
Adjustments for:
Depreciation 534 341 720
Loss on fixed
asset disposal - - 52
Impairment - - 562
Share option charge 29 1 3
Movement in inventories 303 (1,309) (1,359)
Movement in trade
and other receivables 2,422 1,979 322
Movement in trade
and other payables (2,615) (1,304) (555)
Gain on acquisition 4 (3,223) (39) -
Exchange difference
on consolidation 67 138 46
------------- ------------- -------------
Cash generated
from continuing
operations 18 (859) 450
Income tax (paid)/recovered (32) (15) 9
Net cash generated
from operations (14) (874) 459
Investing activities
Purchases of property
and equipment (223) (47) (331)
Capitalised expenditure
on product development (37) (37) (126)
Acquisition of
subsidiaries (net
of cash acquired) (5,185) (67) (160)
------------- ------------- -------------
Net cash used
in investing activities (5,445) (151) (617)
Financing activities
Proceeds from
borrowings 9,243 - 3,379
Repayment of borrowings (834) (1,071) (3,682)
Interest and refinancing
costs paid (135) (170) (216)
------------- -------------
Net cash from
financing activities 8,274 (1,241) (159)
Net change in
cash and cash
equivalents 2,815 (2,266) (317)
Cash and cash
equivalents at
start of period 1,533 1,916 1,916
Foreign exchange
rate differences (43) - (66)
-------------
Cash and cash
equivalents at
end of period 4,305 (350) 1,533
============= ============= =============
Cash equivalents:
Cash in hand and
at bank 4,607 1,402 1,798
Bank overdraft (302) (1,752) (265)
-------------
4,305 (350) 1,533
============= ============= =============
Notes to the unaudited accounts:
1. Basis of preparation and accounting policies
These interim financial statements are for the six months ended
31 December 2014. They have been prepared in accordance with IFRSs
as adopted by the European Union. They do not include all of the
information required for full annual financial statements, and
should be read in conjunction with the audited financial statements
of Progility Plc for the period ended 30 June 2014. The financial
information for the period ended 31 December 2013 set out in this
interim report does not constitute statutory accounts as defined in
Section 435 of the Companies Act 2006. The Group's statutory
financial statements for the period ended 30 June 2014 have been
filed with the Registrar of Companies and can be found on the
Group's website www.progility.com. The auditor's report on those
financial statements was unqualified and did not contain statements
under Section 498(2) or Section 498(3) of the Companies Act 2006.
These interim financial statements have been prepared under the
historical cost convention as modified by the revaluation of
derivative financial instruments. These interim financial
statements have been prepared in accordance with the accounting
policies detailed in the Group's financial statements for the year
ended 30 June 2014 except as documented herein. The accounting
policies have been applied consistently throughout the Group for
the purposes of preparation of these interim financial statements.
The interim financial statements are presented in Sterling (GBP),
which is also the functional currency of the Company.
These interim financial statements have been approved for issue
by the board of directors. It should be noted that accounting
estimates and assumptions are used in preparation of the interim
financial information. Although these estimates are based on
management's best knowledge and judgement of current events and
actions, actual results may ultimately differ from those estimates.
The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the
interim financial information, are set out in note 2 to the interim
financial information. In the future, actual experience may deviate
from these estimates and assumptions
The consolidated financial statements include the financial
statements of Progility Plc and its subsidiaries. There are no
associates or joint ventures to be considered.
Consolidated financial statements (in relation to the merger of
ILX Group plc with Progility Technologies Pty Ltd in October 2013)
have been accounted for in these accounts using the principles of
merger accounting with reference to UK Generally Accepted
Accounting Practice (UK GAAP) which does not conflict with IFRS and
reflects the economic substance of the transaction.
2. Accounting estimates and key judgements
The preparation of the interim financial statements in
conformity with IFRS requires management to make estimates and
assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the disclosure of contingent
liabilities at the date of the financial statements. Such estimates
and assumptions are based on historical experience and various
other factors that are believed to be reasonable in the
circumstances and constitute management's best judgment of
conditions at the date of the financial statements. Key estimates
and judgments relate to impairment analysis assumptions, revenue
recognition over exam vouchers, stock movement and deferred tax
assets. In the future, actual experience may deviate from these
estimates and assumptions, which could affect the interim financial
statements as the original estimates and assumptions are modified,
as appropriate, in the period in which the circumstances
change.
Key judgement - Merger Accounting
In forming its judgement as to the appropriateness of the use of
merger accounting following the merger transaction with Progility
Pty Ltd ("the Transaction") the Board considered whether common
control was in place for each of the merging entities (ILX Group
plc and Progility Pty Ltd) both prior to and after the completion
of the transaction on 3 October 2013. Following the preparation of
the Group's financial statements for the fifteen months to 30 June
2013 the Board adopted the wider definition of control under IFRS10
which takes into account other material influencing factors in
addition to the consideration of an investor/shareholder's equity
holding. Prior to the Transaction the significant shareholder in
Progility Pty Ltd was Praxis Trustees with a holding of 73.47%, and
therefore control existed. Prior to the Transaction Praxis Trustees
also held 29.9% of ILX Group plc in addition to holding convertible
debt of GBP0.4 million. The importance of Praxis Trustees
investment into the Group in August 2012 and its subsequent issue
of convertible debt provided material additional influence over ILX
Group plc to ensure its management's objective of restructuring and
repositioning the Group was given a strong platform for success.
Consequently taking all the factors together with the guidance
provided in IFRS10 the Board has concluded that IFRS 3 would not
apply, and that common control was in place both prior to and after
the Transaction.
Key judgement - Goodwill
In respect of acquisitions, the Group measures goodwill at the
acquisition date as:
-- the fair value of the consideration transferred; plus the
recognised amount of any non-controlling interests in the acquired;
plus
-- the fair value of the existing equity interest in the acquiree; less
-- the net recognised amount (generally fair value) of the
identifiable assets acquired and liabilities assumed.
When the excess is negative, the negative goodwill is recognised
immediately in profit or loss. Costs related to the acquisition,
other than those associated with the issue of debt or equity
securities, are expensed as incurred.
Key judgement - Going concern
The Directors, after making enquiries of its loan note holders,
considering its financing arrangements and based on its cash flow
projections, have a reasonable expectation that the Company and the
Group will have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to
adopt the going concern basis in preparing the annual report and
financial statements.
3. Segmental reporting
In accordance with IFRS 8 the Group's operating segments are
based on the reports reviewed by the Executive Directors that are
used to make strategic decisions.
The Group reports its results in two segments:-
Northern Operations - The Group's Northern Hemisphere operations
comprise operations in the UK and Ireland, the United States,
Europe and the Middle East, which were managed and directed during
the period under review from the London office.
Southern Operations - The Group's Southern Hemisphere operations
comprise operations in Australia and New Zealand, which are managed
and directed by the Melbourne office.
The Northern Hemisphere provides training, recruitment and
consultancy services and the activities of Starkstrom. The Southern
Hemisphere segment provides training, consulting services and
technology solutions goods and services and will include the
activities of the Indian business acquired at the end of 2014.
Segment profit or loss consists of earnings before interest, tax
and highlighted items. This measurement excludes the effects of
non-recurring expenditure from the operating segments such as
restructuring costs and purchased intangibles amortisation.
Interest income and expenditure are not allocated to segments as
this type of activity is driven by the central treasury activities,
which manages the cash position of the Group.
Unaudited six months ended 31 December 2014
Northern Southern Reportable
Hemisphere Hemisphere Segments Unallocated Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 12,075 12,363 24,438 - 24,438
Operating
profit before
highlighted
items 897 1,686 2,583 (2,639) (56)
Unaudited restated six months ended 31 December 2013
Northern Southern Reportable
Hemisphere Hemisphere Segments Unallocated Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 5,930 12,704 18,634 - 18,634
Operating
profit before
highlighted
items 857 1,345 2,202 (2,268) (66)
Year ended 30 June 2014
Northern Southern Reportable
Hemisphere Hemisphere Segments Unallocated Total
GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 13,400 25,386 38,786 - 38,786
Operating
profit before
highlighted
items 2,732 3,154 5,886 (3,238) 2,648
A reconciliation of segment operating profit to total profit
before tax is set out below:-
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
31 December 31 December 31 June
2014 2013 2014
GBP'000 GBP'000 GBP'000
Reportable segment operating
profit before highlighted
items 2,583 2,202 5,886
Unallocated costs: (2,639) (2,268) (3,238)
------------- ------------- -----------
Operating (loss)/profit before
highlighted items (56) (66) 2,648
Highlighted items 2,557 (600) (1,989)
------------- ------------- -----------
Operating profit/(loss) 2,501 (666) 659
Net finance costs (1,038) (481) (984)
------------- ------------- -----------
Profit/(loss) before tax 1,463 (1,147) (325)
============= ============= ===========
Unallocated costs comprise central costs that are not considered
attributable to the segments.
4. Highlighted items
The Group incurred costs during the period which we have
highlighted as non-operating costs. These costs include transaction
costs, restructuring costs and other strategic, non-cash items
including amortization of intangibles, impairment, or non-recurring
acquisition expenses and non-trading items. This has resulted in
the following charges and intangibles impairment as follows:
Unaudited Unaudited Audited
six months six months 12 months
ended ended ended
31 December 31 December 31 June
2014 2013 2014
GBP'000 GBP'000 GBP'000
Non-cash share option
charge (29) (1) (3)
Restructuring costs incurred (102) - -
Acquisition and merger
costs (311) (450) (1,072)
Negative goodwill/(impairment
of intangibles) 3,223* 39 (562)
Amortisation charges (224) (188) (352)
------------- ------------- -----------
Total highlighted costs 2,557 (600) (1,989)
============= ============= ===========
* This amount represents the surplus of net assets in connection
with the acquisition of Progility India after recognising the
amount (an intial estimate of fair value) of the identifiable
assets and liabilities acquired over the consideration paid.
5. Profit per share
This has been calculated on the profit for the period of
GBP1,463,000 (2013: Loss GBP791,000). The number of shares on an
undiluted basis is 199,666,880, being the weighted average number
of shares in issue during the period. The number of shares on a
diluted basis in the period to 31 December 2014 is 211,347,649.
6. Dividends
No dividend is proposed for the six months ended 31 December
2014.
7. Copies of Interim financial statements
The Interim Results will be posted on the Company's web site
www.progility.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PKODNQBKKANB
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