TIDMPGY
RNS Number : 2581A
Progility PLC
23 March 2017
Embargoed: 7.00a.m. 23 March 2017
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
Progility plc
("Progility" or "the Group")
Interim Results
Progility plc (AIM: PGY) the Professional Services, Healthcare
and Communications firm is pleased to announce its Interim Results
for the six months to 31 December 2016.
The results for the six months to 31 December 2016 have shown a
significant growth in sales, up by 22% over the prior period, a
result of organic growth and favourable exchange rate movements.
There have been no acquisitions in the period. The businesses'
performance continues to be reported in three segments;
Professional Services (comprising the training and recruitment
businesses), Healthcare (comprising Starkstrom) and Communications
(which is comprised of our communications technology businesses in
India and Australia). Professional Services revenues declined in
the period. Healthcare has performed well in the period achieving a
12% increase in revenue, and Communications has achieved a 41%
increase in revenue, some of which is as a result of the weakness
of Sterling following the 'Brexit' referendum, as well as organic
growth in India and Australia.
Six months' highlights from continuing operations - good revenue
growth, achieved profits
-- Revenues up to GBP36.5 million (2015: GBP30.0 million)
-- Operating profit GBP1.6 million (2015: GBP0.1 million)
-- Profit before tax GBP0.03 million (2015: Loss GBP1.2 million)
-- Gross profit margin of 34.9% (2015: 38.5%)
-- Operating profit margin of 4.5% (2015: 0.2%)
-- Delivery of major contracts in the Healthcare division
-- Weakness of Sterling has benefitted Group performance, in
combination with improved underlying performance of foreign
operations
-- Significant reduction in Central corporate costs
-- Turnaround in Australian operations and improving business environment
Wayne Bos, Executive Chairman, commented:
"The Group has progressed in the first half of the financial
year. This improvement is encouraging but does not yet meet what we
would consider an acceptable performance. Some major contracts have
been won by Starkstrom in the Healthcare division and the closure
of our marketing office in the Middle East has enabled cost savings
to
be achieved. Healthcare revenue and profits showed progress.
The Communications business has performed well, with both the
Indian and Australian operations achieving increases in both
revenue and reporting higher profits. In India, revenue increased
by more than profits, so there was a decrease in profit margins,
whilst Australia has increased both revenue and profitability,
reversing the operating loss in the prior period.
Professional Services had a weaker first half to the financial
year. The ILX brand continues to be recognised as a mark of
quality, but has encountered intense price competition in the UK,
resulting in a decline in reported revenue and profits. Overseas
the ILX businesses have reported both higher revenue and profits,
due to the exchange rate benefit, which has resulted in ILX profits
overall being in line with the prior year. The ILX management also
intends to strengthen its corporate sales division to better
complement online sales, where a year on year increase was
achieved. In the recruitment business revenue was hampered by the
loss of one major customer.
In addition to the above, there has been a reduction in Central
corporate costs, which has contributed to the improved Group
result.
Overall, we continue to pursue our strategic objectives, and we
remain optimistic for the full year to June 2017. Management will
continue to seek means to reduce costs and increase revenue, and to
improve performance across all areas of the business."
Enquiries:
Progility plc
Wayne Bos, Executive Chairman 020 7371 4444
SPARK Advisory Partners
Limited (Nominated Advisor)
Mark Brady/Sean Wyndham-Quin 0203 368 3551
W H Ireland Limited (Broker)
Adrian Hadden 020 7220 1666
Executive Chairman and Financial Review
Introduction
The results for the six months to 31 December 2016 have shown a
significant growth in sales, up by 22% over the prior period, a
result of organic growth and favourable exchange rate movements.
There have been no acquisitions in the period. The businesses'
performance continues to be reported in three segments;
Professional Services (comprising the training and recruitment
businesses), Healthcare (comprising Starkstrom) and Communications
(which is comprised of our communications technology businesses in
India and Australia). Professional Services revenues declined in
the period. Healthcare has performed well in the period achieving a
12% increase in revenue, and Communications has achieved a 41%
increase in revenue, some of which is as a result of the weakness
of Sterling following the 'Brexit' referendum, as well as organic
growth in India and Australia.
Highlights from continuing operations - good revenue growth,
achieved profits
-- Revenues up 21.6% to GBP36.5 million (2015: GBP30.0 million)
-- Operating profit GBP1.6 million (2015: GBP0.1 million)
-- Profit before tax GBP0.03 million (2015: Loss GBP1.2 million)
-- Gross profit margin of 34.9% (2015: 38.5%)
-- Operating profit margin of 4.5% (2015: 0.2%)
-- Delivery of major contracts in the Healthcare division
-- Weakness of Sterling has benefitted Group performance, in
combination with improved underlying performance of foreign
operations
-- Significant reduction in Central corporate costs
-- Turnaround in Australian operations and improving business environment
The last six months have seen an improvement in the performance
of the Group as a whole. Gross profit margins have declined
compared to the previous year, due to competitive pressures,
however better efficiencies and savings in Central corporate costs
have translated into an improvement in the operating profit margin.
Market conditions have improved in mining in Australia, and the
Indian operations continue to deliver positive results. There are
challenges to face in Professional Services. The current period saw
no acquisitions or disposals, thereby allowing the management to
focus on the existing businesses and their individual operating
performance.
Overview and summary of results
The geographic spread of our Group has been helpful to a
developing business, particularly in the digital age; it allows
access for our offerings to more markets, as is clearly illustrated
with the international spread of the project management training
business.
Our business continues to be managed through three business
segments to maximize our ability to communicate and to deliver our
full range of products and expertise to our key clients' decision
makers across the diverse territories and time zones in which we
operate. These three segments reflect the management responsibility
and accounting arrangements used to manage and report upon the
performance of the business. Key performance indicators (KPI's) for
each business are revenue, gross profit margin and earnings before
interest, taxation, depreciation and amortisation (EBITDA).
Revenue in the Professional Services segment declined in the
current period, a result of pricing pressures in the UK ILX
business and also the loss of a major client in one of the
recruitment businesses. Further afield the ILX businesses continue
to perform, assisted by favourable exchange rates, with both the
Australian and Dubai based businesses reporting improvement in both
revenues and profits.
Executive Chairman and Financial Review (continued)
The UK-based Starkstrom Healthcare business continues to
integrate within Progility. Starkstrom has won some major contracts
in the period. The decision to close our marketing office in Dubai,
which was not successful, has resulted in cost savings.
The Communications segment has been the leading performer in the
first half, with the improved underlying business performance
enhanced by the weaker Sterling on consolidation into the Group
result. The performance in Australia has been noteworthy, where an
operating loss in the first half of last year has been converted to
an operating profit. The strengthening of our management team in
Australia has also contributed, following the appointment of a
fully focused Chief Executive. In India the economy continues to
perform, which is reflected in the continued performance of the
business.
Summary of results and operating performance from continuing
operations
The table below sets out a summary of our results:
Unaudited
six Unaudited
months six months
ended ended
31 December 31 December
2016 2015
Revenue 36,486 30,002
------------- -------------
Gross
profit 12,736 11,539
------------- -------------
Operating profit 1,628 74
------------- -------------
Net finance
costs (1,600) (1,267)
------------- -------------
Profit / (loss)
before tax 28 (1,193)
------------- -------------
Professional Services' revenues declined 11.4% against prior
year, from GBP8.71m to GBP7.72m. Revenue fell in the UK ILX
business, but increased in Australia and the Middle East. Revenue
also fell in the recruitment businesses. However, operating
profitability within the segment was maintained at GBP0.74m, after
the inclusion of GBP0.22m of costs in the prior year, which had
previously been included within Central corporate costs. The
management of the ILX businesses remain focused on the reasons for
the decline in revenue generation.
In the Healthcare segment revenue increased 11.8% against prior
year, year-on-year from GBP5.60m to GBP6.26m, and a loss in the
prior year has been turned into an operating profit of GBP0.62m.
Margins have improved at gross profit and operating profit levels,
a result of maximising value from contracts and containing costs.
The closure of the overseas operation has resulted in a saving of
GBP0.25m compared to the prior year, which has contributed to the
overall result.
The Communications segment has performed well in the first half
of the year both in India and Australia. The Australian operations
in particular have seen a revival in the mining sector as well as
an increase in sales of radio equipment in the retail market, which
has translated into a 36% increase in revenue and enable an
operating profit to be achieved, reversing the losses reported in
the prior year. The Indian business, acquired in December 2014 for
GBP0.8m, has now contributed GBP1.2m of dividends to the UK and
continues to grow in its home market. As a whole the Communications
division achieved a 40.9% increase in turnover year on year, from
GBP16.19m to GBP22.81m, accompanied by an increase in operating
profits from GBP0.17m to GBP0.83m.
Executive Chairman and Financial Review (continued)
Central corporate costs have declined by 39.4% from the prior
year, a direct result of measures taken to reduce costs due to less
corporate activity, but also to achieve greater efficiencies in the
management of the Group. Central corporate costs totalled GBP0.57m
in the period, compared to GBP0.94m a year before.
The operating profit from continuing business in the period was
GBP1.63m, compared to GBP0.74m in the prior period. There are no
items being highlighted in either the current reporting period or
the same period last year.
The level of debt has increased by GBP0.2m in the period but, as
a result of an increase in accrued unpaid interest on existing
debt, the net interest charge rose to GBP1.60m (2015 GBP1.27m),
resulting in a small profit before tax of GBP0.03m for the six
months to December 2016 (2015: loss before tax GBP1.19m).
The tax charge in the period was GBP0.31m, relating to
corporation tax on profits in India and a distribution tax on the
payment of dividends from India.
Discontinued operations in the current period resulted in a
small GBP5k loss after tax compared to a loss of GBP161k in the
previous year.
Cash flow, net debt and facilities
Cash generated from operations in the period was GBP0.38m (2015:
GBP(0.35)m), principally reflecting the improvement in
profitability offset by increases in working capital, including an
increase in inventory within the Healthcare sector required for
contracts to be delivered. Capital expenditure was GBP0.31m in the
period, broadly similar to the previous year and, in combination
with the final GBP0.68m deferred payment for the acquisition of
Starkstrom, resulted in a GBP0.94m cash outflow from investing
activities.
At the balance sheet date the Group's debt facilities, including
unpaid interest, comprised GBP1.14m of invoice discounting facility
(2015 GBP2.39m) and GBP24.31m of shareholder loans (including
convertible loan notes) (2015 GBP17.10m). In the prior year there
were an additional GBP1.38m of third party loans which have since
been repaid.
At the same date the Group's cash and cash equivalents amounted
to GBP2.93m (2015 GBP3.46m).
Shareholder loans
The Group's acquisitions have been funded in recent years
entirely through the issue of 12% loan notes which are listed on
the Channel Islands Stock Exchange.
The subscriber for all 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 Group's strategy.
Dividend
The Board does not recommend a dividend for the period ended 31
December 2016. Given the Group's strategic direction and historic
financial performance, the Board does not envisage the Company's
paying a dividend for the foreseeable future.
By order of the Board
Wayne M Bos
Executive Chairman
23 March 2017
Unaudited consolidated statement of Comprehensive Income for the
six months ended 31 December 2016
Unaudited Unaudited Audited
six months six months year
ended ended ended
31.12.2016 31.12.2015 30.06.16
Continuing operations Note GBP000 GBP000 GBP000
Revenue 3,4 36,486 30,002 61,631
Cost of Sales (23,750) (18,463) (39,015)
------------ ------------ ----------
Gross profit 12,736 11,539 22,616
Administrative and
distribution expenses
- excluding highlighted
items (11,108) (11,465) (22,722)
Administrative and
distribution expenses
- highlighted items - - (588)
---------------------------- ----- ------------ ------------ ----------
Total administrative
and distribution
expenses (11,108) (11,465) (23,310)
Other income - highlighted
items - - 2,000
Other expenses -
highlighted items - - -
Operating (loss)/profit
before highlighted
items 1,628 74 (106)
Highlighted items - - 1,412
---------------------------- ----- ------------ ------------ ----------
Operating (loss)/profit 1,628 74 1,306
Finance income 74 124 263
Finance costs (1,674) (1,391) (2,962)
------------ ------------ ----------
(Loss)/profit before
tax and highlighted
items 28 (1,193) (2,805)
Highlighted items - - 1,412
---------------------------- ----- ------------ ------------ ----------
(Loss)/profit before
tax 28 (1,193) (1,393)
Tax charge (306) (433) (1,038)
------------ ------------ ----------
(Loss)/profit after
tax (278) (1,626) (2,431)
Discontinued operation
Loss after tax from
discontinued operations 5 (5) (161) (268)
------------ ------------ ----------
(Loss)/profit for
the period attributable
to equity shareholders (283) (1,787) (2,699)
------------ ------------ ----------
Items that may be
reclassified to profit
or loss
------------ ------------ ----------
Currency translation
differences on foreign
operations 440 216 662
------------ ------------ ----------
Other comprehensive
income, net of tax 440 216 662
------------ ------------ ----------
Total comprehensive
(loss)/profit 157 (1,571) (2,037)
============ ============ ==========
(Loss)/earnings per
share
Basic 6 (0.14)p (0.89)p (1.22)p
Diluted 6 (0.14)p (0.89)p (1.22)p
Unaudited consolidated statement of Financial Position as at 31
December 2016
Unaudited Unaudited Audited
As at As at As at
31.12.2016 31.12.2015 30.6.2016
GBP000 GBP000 GBP000
Assets
Non-current assets
Property, plant and
equipment 1,097 1,316 1,029
Intangible assets 19,527 20,009 19,501
Deferred tax asset 839 848 709
------------ ------------ -----------
Total non-current
assets 21,463 22,173 21,239
------------ ------------ -----------
Current assets
Inventories 4,389 3,473 3,260
Trade and other receivables 18,040 13,503 14,931
Other current assets 3,288 3,182 2,827
Tax receivable - 49 -
Cash and cash equivalents 2,930 3,460 3,564
------------ ------------ -----------
Total current assets 28,647 23,667 24,582
Total assets 50,110 45,840 45,821
------------ ------------ -----------
Current liabilities
Trade and other payables (24,071) (17,257) (20,309)
Deferred consideration - (1,361) (681)
Provisions (2,694) (4,275) (2,650)
Tax liabilities (205) (412) (174)
Bank and shareholder
loans (1,521) (2,965) (1,174)
------------ ------------ -----------
Total current liabilities (28,491) (26,270) (24,988)
------------ ------------ -----------
Non-current liabilities
Shareholder loans (19,039) (16,699) (18,463)
Deferred tax liability (217) (199) (186)
Provisions (142) (180) (131)
------------ ------------ -----------
Total non-current
liabilities (19,398) (17,078) (18,780)
------------ ------------ -----------
Total liabilities (47,889) (43,348) (43,768)
------------ ------------ -----------
Net assets 2,221 2,492 2,053
============ ============ ===========
Issued share capital 19,967 19,967 19,967
Share premium 114 114 114
Other reserve 75 75 75
Merger reserve (14,854) (14,854) (14,854)
Own shares in trust (2) (2) (2)
Share option reserve 47 47 42
Retained earnings (3,897) (2,740) (3,620)
Foreign currency translation
reserve 771 (115) 331
Total equity 2,221 2,492 2,053
============ ============ ===========
Unaudited consolidated Cash Flow Statement for the six months
ended 31 December 2016
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 30.6.2016
31.12.2016 31.12.2015
GBP000 GBP000 GBP000
Operating profit/(loss) 1,623 (87) 1,038
Adjustments for:
Depreciation and amortisation 395 525 1,135
Loss on fixed asset
disposal - 56 96
Impairment of intangibles - - 588
Gain on bargain purchase - - -
Share option charge 11 4 31
Revaluation of own
shares held in trust - - -
Movement in inventories (949) 529 1,113
Movement in trade
and other receivables (2,314) 1,991 2,400
Movement in trade
and other payables 1,755 (3,634) (4,446)
Exchange difference
on consolidation (142) 266 (170)
------------ ------------ -----------
Cash generated from
operations 379 (350) 1,785
Income tax paid (360) (15) (590)
Net cash generated
from operations 19 (365) 1,195
------------ ------------ -----------
Investing activities
Interest received 73 124 263
Purchases of property
and equipment (305) (258) (388)
Capitalised expenditure
on product development (28) (45) (64)
Acquisition of subsidiaries
(net of cash acquired) (681) (680) (1,361)
------------ ------------ -----------
Net cash used in investing
activities (941) (859) (1,550)
------------ ------------ -----------
Financing activities
Proceeds from borrowings 191 1,901 2,775
Repayment of borrowings - (413) (2,402)
Interest costs paid (88) (158) (75)
Net cash from financing
activities 103 1,330 298
------------ ------------ -----------
Net change in cash
and cash equivalents (819) 106 (57)
Cash and cash equivalents
at start of period 3,564 3,350 3,350
Foreign exchange rate
differences 185 4 271
Cash and cash equivalents
at end of period 2,930 3,460 3,564
============ ============ ===========
Cash and cash equivalents
comprise:
Cash in hand and at
bank 2,930 3,460 3,564
Bank overdraft - - -
2,930 3,460 3,564
============ ============ ===========
Unaudited consolidated Statement of Changes in Equity for the
six months ended 31 December 2016
Called Own Foreign
up Share shares Share currency
share premium Other Merger in option translation Retained
capital account reserve reserve trust reserve reserve earnings Total
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at
30.6.2015 19,967 114 75 (14,854) (2) 43 (331) (953) 4,059
Options
granted - - - - - 4 - - 4
Options
lapsed
and waived - - - - - - - - -
Transactions
with owners - - - - - 4 - - 4
-------- -------- -------- --------- -------- -------- ------------ --------- --------
Profit
for the
year - - - - - - - (1,787) (1,787)
Other
comprehensive
income:
Foreign
currency
translation
adjustment - - - - - - 216 - 216
-------- -------- -------- --------- -------- --------
Total
comprehensive
income
for the
year - - - - - - 216 (1,787) (1,571)
-------- -------- -------- --------- -------- -------- ------------ --------- --------
As at
30.12.2015 19,967 114 75 (14,854) (2) 47 (115) (2,740) 2,492
======== ======== ======== ========= ======== ======== ============ ========= ========
Called Own Foreign
up Share shares Share currency
share premium Other Merger in option translation Retained
capital account reserve reserve trust reserve reserve earnings Total
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at
30.6.2016 19,967 114 75 (14,854) (2) 42 331 (3,620) 2,053
Options
granted - - - - - 11 - - 11
Options
lapsed
and waived - - - - - (6) - 6 -
Transactions
with owners - - - - - 5 - 6 11
-------- -------- -------- --------- -------- -------- ------------ --------- --------
Profit
for the
year - - - - - - - (283) (283)
Other
comprehensive
income:
Foreign
currency
translation
adjustment - - - - - - 440 - 440
-------- -------- -------- --------- -------- --------
Total
comprehensive
income
for the
year - - - - - - 440 (283) 157
-------- -------- -------- --------- -------- -------- ------------ --------- --------
As at
30.12.2016 19,967 114 75 (14,854) (2) 47 771 (3,897) 2,221
======== ======== ======== ========= ======== ======== ============ ========= ========
Notes to the unaudited accounts:
1. Basis of preparation and accounting policies
These interim financial statements are for the six months ended
31 December 2016. They have been prepared based on the measurement
and recognition principles of International Financial Reporting
Standards as adopted by the European Union (EU-IFRS) and IFRC
interpretations issued and effective at the time of preparing these
statements. 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 year
ended 30 June 2016. The financial information for the period ended
31 December 2016 set out in this interim report does not constitute
statutory accounts as defined in Section 434 of the Companies Act
2006. The Group's statutory financial statements for the period
ended 30 June 2016 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 2016 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.
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 - 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 the profit and loss. Costs related to the
acquisition, other than those associated with the issue of debt or
equity securities, are expensed as incurred.
Notes to the unaudited accounts (continued):
2. Accounting estimates and key judgements (continued)
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. Prior year comparatives
In line with the 30 June 2016 audited financial statements, the
prior period comparatives in these financial statements have been
re-presented to reflect the decision by Woodspeen Training Limited
to discontinue operations in the south of England, and provide all
training services in the north of the country. Details of the
discontinued operations are provided in note 5 below.
In addition, for the purpose of segmental reporting, certain
prior period costs have been reallocated from Central corporate
costs to the Professional Services segment, as detailed in note 4,
to ensure a like for like comparison with the current period.
4. 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 three segments:-
Professional Services - The Group's Professional operations
comprise the training, recruitment and consultancy activities
operating in the UK, Dubai, Australia and New Zealand.
Healthcare - The Group's Health operations comprise the
activities of Starkstrom Limited.
Communications - The Group's Communications operations comprise
the technology solutions goods and services businesses which
operate in Australia and India.
Central corporate costs comprise Head Office functions,
including Finance, Treasury and Human Resources. A total of
GBP0.22m of costs incurred in the prior six month period have been
reallocated to the Professional Services division to allow a like
for like comparison to be achieved. These costs related to the
transfer of the ILX training business from Progility plc to ILX
Group plc.
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.
Notes to the unaudited accounts (continued):
4. Segmental reporting (continued)
Six months
Six months ended Year ended
ended 31.12.2016 31.12.2015 30.6.2016
Segment Segment Segment
Profit/ Profit/ Profit/
Revenue (loss) Revenue (loss) Revenue (loss)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Professional services 7,719 737 8,712 728 16,748 819
Healthcare 6,255 622 5,596 (53) 11,148 62
Communications 22,810 831 16,185 174 34,559 515
Elimination of Professional
Services discontinued
operations (298) 5 (491) 161 (824) 268
Central corporate
costs (567) (936) (1,770)
--------- --------- -------- --------- -------- ---------
Total segmental
result 36,486 1,628 30,002 74 61,631 (106)
========= ======== ========
Highlighted items - - 1,412
--------- --------- ---------
Operating profit
from continuing
operations 1,628 74 1,306
Net finance costs (1,600) (1,267) (2,699)
Profit before tax
from continuing
operations 28 (1,193) (1,393)
========= ========= =========
Adjusting for highlighted
items
Reversal of provisions
- Non-recurring, - - (2,000)
Impairment charges
- Non-recurring - - 588
--------- --------- ---------
- - (1,412)
========= ========= =========
As at 31.12.2016 As at 31.12.2015 As at 30.6.2016
Segmental Segmental Segmental Segmental Segmental Segmental
assets liabilities assets liabilities assets liabilities
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Professional
services 22,052 24,979 21,511 22,335 21,384 24,123
Healthcare 3,510 3,757 4,933 4,505 3,543 3,601
Communications 24,548 19,153 19,396 16,508 20,894 16,044
---------- ------------- ---------- ------------- ---------- -------------
Total 50,110 47,889 45,840 43,348 45,821 43,768
========== ============= ========== ============= ========== =============
5. Discontinued operations
In February 2016, Woodspeen Training Limited, part of the
Group's Professional Services sector, decided to discontinue
operations in the south of England and provide all training
services in the north of the country. The revenues, expenses and
pre-tax profit of the discontinued operations for the current
period and the prior period are detailed below.
Notes to the unaudited accounts (continued):
5. Discontinued operations (continued)
Six months Six months
ended 30.12.2016 ended 30.12.2015
GBP'000 GBP'000
Revenue 298 491
Expenses (303) (652)
Pre-tax loss (5) (161)
Taxation - -
------------------ ------------------
Post-tax loss (5) (161)
================== ==================
Basic and diluted loss per
share from discontinued operations - 0.08p
6. Loss per share
This has been calculated on the loss for the period of
GBP283,000 (2015: Loss GBP1,787,000) and the number of shares used
was 199,666,880 (2015: 199,666,880), being the weighted average
number of share in issue during the period.
7. Dividends
No dividend is proposed for the six months ended 31 December
2016.
8. 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 PGUUGWUPMGBP
(END) Dow Jones Newswires
March 23, 2017 03:00 ET (07:00 GMT)
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