TIDMSID
RNS Number : 8257P
Silverdell PLC
31 March 2009
Silverdell Plc
("Silverdell" or the "Company")
Results for the year ended 30 September 2008
31 March 2009
Silverdell, a leading UK supplier of asbestos remediation, consultancy and
environmental services, today announces its financial results for the year ended
30 September 2008, being the second full year of trading since its admission to
AIM in April 2006.
+------+---------------------------------------------------------------------------+
| - | Turnover increased by 59.5% to GBP61.4m (2007 turnover of GBP38.5m) |
| | |
+------+---------------------------------------------------------------------------+
| - | EBITDA of GBP2.5 million (2007 EBITDA: GBP5.1 million) |
| | |
+------+---------------------------------------------------------------------------+
| - | Adjusted basic EPS of 0.6 pence(Note 1) (2007 Adjusted EPS: 7.7 pence) |
| | |
+------+---------------------------------------------------------------------------+
Further to its announcement on 5 March 2009, Silverdell is also pleased to
announce that it has agreed revised facilities with its lenders as regards the
provision of ongoing banking facilities (including a short term facility of
GBP3.25m which is due for repayment on 30 June 2009) and the Company expects to
update the market in due course with further details of the proposed equity
fundraise.
-Ends-
+----------------------------------------+----------------------------------------+
| For further information please | |
| contact: | |
| | |
+----------------------------------------+----------------------------------------+
| Silverdell Plc | Tel: +44 (0) 20 7004 2700 |
| David Williams, Chairman | |
| | |
+----------------------------------------+----------------------------------------+
| Collins Stewart Europe Limited | Tel: +44 (0) 20 7523 8325 |
| Hugh Field | |
+----------------------------------------+----------------------------------------+
The financial information set out in the announcement does not constitute the
company's statutory accounts for the years ended 30 September 2008 or 2007. The
financial information for the year ended 30 September 2007 is derived from the
statutory accounts for that year.
The audit of the statutory accounts for the year ended 31 December 2008 is
complete. The auditors reported on those accounts and a copy of their report,
which included references to matters to which the auditors drew attention to by
way of emphasis of matter without qualifying their report, is set out in this
announcement.
While the financial information included in this announcement has been prepared
in accordance with the recognition and measurement criteria of International
Financial Reporting Standards (IFRSs), this announcement does not itself contain
sufficient information to comply with IFRSs.
The Company's Report and Financial Statements for the year ended 30 September
2008 are today being despatched to Shareholders. Pursuant to Rule 26 of the AIM
Rules, the Report and Financial Statements will be available on the Company's
website (www.silverdell.plc.uk) today.
Note (1) adjusted EPS exclude: intangible asset amortisation, share-based
payment charges, non-recurring expenses and finance charges on deferred
consideration.
Chairman's Statement
Results
For the year ended 30 September 2008, our Company achieved turnover of GBP61.4m
compared with GBP38.5m in the previous year. Pre tax profits reduced from
GBP1.4m in the previous year to a loss of GBP16.8m and basic loss per share was
(37.2) p compared with 2.1p of earnings in the previous year. Adjusted earnings
per share, stripping out amortisation of intangible assets, intangibles
impairment, share-based payment charges, finance charges on deferred
consideration and non-recurring expenses, was 0.6p (2007: 7.7p).
As with last year your Directors do not recommend the payment of a dividend.
The loss is mainly caused by a material impairment of the goodwill value of
acquisitions. In light of the current economic environment, where acquisition
multiples have diminished, it was deemed prudent to reduce the carrying value of
these acquisitions. This has no cash impact on the Group; it merely places a
more prudent valuation on its subsidiaries. The performance of the acquisitions
has in fact been good; it has been Silverdell (UK), the original business, where
results have disappointed.
The Board and management
Following a disappointing first half, your Directors made a number of changes to
ensure that the prospects for the business can be maximised. Management changes
have included Danny Spicer moving from the plc board to become Chairman of
Silverdell (UK),where we retain the benefit of Danny's customer relations and
experience.
Chris Sims also stood down as Finance Director with effect from 22 October 2008.
Sean Nutley was promoted to the Chief Executive role on the 22 October 2008 and
an interim Group Finance Director recruited. In addition, the Group's subsidiary
management structure was strengthened with several new appointments and the
benefits of these changes should be evident in due course.
During the year a number of acquisition opportunities were reviewed. We were
close to making a substantial acquisition but market conditions deteriorated
causing the Directors to reconsider its merits. Our profits have been affected
by the costs incurred, although our decision not to proceed proved to be
prudent.
Given all these changes, I particularly wish to thank our staff for all their
efforts during this period. It goes without saying that we also appreciate the
loyalty and support of our customers.
Financing
As at , debt of GBP11.2m (2007: GBP7.4m) is long term and is expected to mature
in 2011. In addition the Group has short term borrowings of GBP3.2m comprising
primarily of bank overdrafts and loans of GBP2.8m. Subsequent to the year end,
the Group concluded its discussions with Barclays Bank to restructure its
existing facilities, which includes a short term loan of GBP3.25m due for
repayment at 30 June 2009. These restructured facilities combined with the
planned intention to raise additional finance by way of equity placing, which
certain shareholder s have led the Group to believe will be achievable, will
provide sufficient resources, based on projected trading, to allow the Group to
meet is liabilities as they fall due (please refer to Note 2).
The Directors, in their consideration of going concern, have reviewed the
Group's revenue and cash projections, which they believe are based on prudent
market data and past experience and believe, based on those forecasts and
projections, that it is appropriate to prepare the financial statements of the
Group on the going concern basis.
David Williams, Chairman
Chief Executive's Statement
My appointment as Chief Executive Officer has come at a time when market
conditions have become increasingly challenging and competitive, which have
impacted this year's trading performance. I concur with the Chairman's comments
that 2008 was a difficult year and re-iterate the belief that the changes made
put the Company in a much stronger position.
Despite this, the Group has an excellent track record working with a wide range
of clients in diverse markets. These range from construction, rail, public
sector, retail, industrial, nuclear, defence, health and education.
We are committed to developing our strategic focus to embrace the growth
opportunities within the environmental sector (both the consultancy and
contracting), to develop our presence in the industrial sector and to penetrate
waste and remediation markets further.
Silverdell (UK), Redhill Analysts and Kitsons all have a strong presence in
their respective markets and locations. We have continued to develop the number
of framework contracts we manage to improve the forward order book. In addition,
we remain committed to excellence on site to reinforce our status as preferred
contractor among existing clients. New service offerings have been identified as
part of our market and product development strategies which will further improve
the positioning of the Group.
We will continue to develop each of the businesses organically. This will be
achieved through a balanced exposure to both public sector and commercial
markets designed to respond to both changing markets and the economic
environment. To deliver this strategy, we will:
+---+------------------------------------------------------------------------------+
| - | ensure we work collaboratively with our clients so that the |
| | quality of or service delivery always meets expectations |
| | |
+---+------------------------------------------------------------------------------+
| - | develop each business through profitable and secure income |
| | streams; |
| | |
+---+------------------------------------------------------------------------------+
| - | attract, develop and retain employees who add value to our |
| | skills base and service offering; and |
| | |
+---+------------------------------------------------------------------------------+
| - | generate cash to develop our business and improve gearing |
| | levels. |
| | |
+---+------------------------------------------------------------------------------+
The role of the Board will be to implement our strategy, ensure the right
leadership is in place to deliver agreed business plans and monitor performance
against set targets. Certain functions will be co-ordinated centrally including
finance, information systems, health and safety and sales and marketing as we
continue to evolve as a Group in the forthcoming year. We have further
strengthened our management team in respect of environmental and remediation
expertise to realise new opportunities through vertical market integration.
The Chairman's statement refers to the current financing position of the Group.
From an operational perspective, the aim for the forthcoming year is to build on
the healthy forward order book, despite an environment of economic uncertainty.
We have started the new trading year with confidence and, operationally, are
well positioned to take advantage of the challenges and opportunities during the
year.
Sean Nutley, Chief Executive
Consolidated income statement for the year ended 30 September 2008
+------------------------------+-------+-------------+--------------+----------+----------+
| | Notes | Before | Non | GBP'000 | GBP'000 |
| | | Non | recurring | | |
| | | recurring | items, | | |
| | | items | impairments | | |
| | | GBP'000 | and | | |
| | | | amortisation | | |
| | | | (see Note | | |
| | | | 11) | | |
| | | | GBP'000 | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Revenue | | 61,378 | - | 61,378 | 38,498 |
+------------------------------+-------+-------------+--------------+----------+----------+
| Cost of sales | | (46,793) | - | (46,793) | (24,808) |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Gross profit | | 14,585 | - | 14,585 | 13,690 |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Administrative | | (13,144) | - | (13.144) | (9,359) |
| expenses | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| - impairment of | | - | (14,653) | (14,653) | - |
| goodwill | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| - amortisation of | | - | (2,151) | (2,151) | (2,130) |
| intangible assets | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| - non-recurring | | - | (520) | (520) | - |
| expenses | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Operating | 6 | 1,441 | (17,324) | (15,883) | 2,201 |
| profit/(loss) | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Finance income | 8 | 42 | - | 42 | 72 |
+------------------------------+-------+-------------+--------------+----------+----------+
| Finance costs | 9 | (963) | - | (963) | (846) |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Profit/(loss) before | | 520 | (17,324) | (16,804) | 1,427 |
| tax | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Taxation | 10 | 231 | - | 231 | (670) |
| (credit)/charge | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Profit/(Loss) for the year | 25 | 751 | (17,324) | (16,573) | 757 |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Earnings per share (Pence) | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Basic earnings per | 12 | | | (37.2) | 2.1 |
| ordinary share | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| Diluted earnings per | 12 | | | (37.2) | 1.9 |
| ordinary share | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
| | | | | | |
+------------------------------+-------+-------------+--------------+----------+----------+
All items relate to continuing operations.
Consolidated statement of recognised income and expense
At 30 September 2008
+---------------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| | Note | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Net (expense) / income recognised directly in | | (92) | 62 |
| equity | | | |
+---------------------------------------------------+----------+----------+----------+
| (Loss) / profit for the year | | (16,573) | 757 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Total recognised income and expense | 25 | (16,665) | 819 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
Consolidated balance sheet at 30 September 2008
+--------------------------------+----------+----------+----------+----------+----------+----------+
| | | Notes | | GBP'000 | GBP'000 |
+--------------------------------+----------+----------+----------+----------+----------+
| Non-current assets | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Goodwill | | 13 | | 20,976 | 37,127 |
+--------------------------------+----------+----------+----------+----------+----------+
| Other intangible assets | | 14 | | 2,343 | 4,494 |
+--------------------------------+----------+----------+----------+----------+----------+
| Property, plant and equipment | | 15 | | 2,809 | 2,480 |
+--------------------------------+----------+----------+----------+----------+----------+
| Trade and other receivables | | 18 | | 1,001 | 1,001 |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | 27,129 | 45,102 |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Current assets | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Inventories and work in | | 16 | | 1,163 | 1,278 |
| progress | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Other financial assets | | 17 | | - | 86 |
+--------------------------------+----------+----------+----------+----------+----------+
| Trade and other receivables | | 18 | | 16,562 | 16,134 |
+--------------------------------+----------+----------+----------+----------+----------+
| Cash and cash equivalents | | | 17 | 1,418 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | 17,742 | 18,916 |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Total assets | | | 44,871 | 64,018 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Non-current liabilities | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Borrowings | 20 | | 11,170 | 7,379 |
+-------------------------------------------+----------+----------+----------+----------+
| Deferred tax liabilities | 10 | | 728 | 1,110 |
+-------------------------------------------+----------+----------+----------+----------+
| Deferred consideration | 23 | | - | 2,649 |
+-------------------------------------------+----------+----------+----------+----------+
| Trade and other payables | 22 | | 1,001 | 1,001 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | 12,899 | 12,139 |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Current liabilities | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Borrowings | 20 | | 3,241 | 2,633 |
+-------------------------------------------+----------+----------+----------+----------+
| Trade and other payables | 22 | | 9,139 | 10,229 |
+-------------------------------------------+----------+----------+----------+----------+
| Other financial liabilities | 17 | | 41 | - |
+-------------------------------------------+----------+----------+----------+----------+
| Deferred consideration | 23 | | 334 | 3,000 |
+-------------------------------------------+----------+----------+----------+----------+
| Current tax liabilities | | | 255 | 1,932 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | 13,010 | 17,794 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Total liabilities | | | 25,909 | 29,933 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Net assets | | | | 18,962 | 34,085 |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Equity | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Share capital | | 24 | | 4,165 | 4,068 |
+--------------------------------+----------+----------+----------+----------+----------+
| Share premium account | | 25 | | 13,649 | 13,649 |
+--------------------------------+----------+----------+----------+----------+----------+
| Equity reserve | | 25 | | 411 | 368 |
+--------------------------------+----------+----------+----------+----------+----------+
| Hedging reserve | | 25 | | (30) | 62 |
+--------------------------------+----------+----------+----------+----------+----------+
| Other reserves | | 25 | | 16,635 | 15,233 |
+--------------------------------+----------+----------+----------+----------+----------+
| Retained earnings | | 25 | | (15,868) | 705 |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| Total equity | | | 18,962 | 34,085 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+-------------------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+--------------------------------+----------+----------+----------+----------+----------+----------+
Consolidated cash flow statement year ended 30 September 2008
+-----------------------------------------+----------+----------+----------+----------+
| | Notes | | GBP'000 | GBP'000 |
+-----------------------------------------+----------+----------+----------+----------+
| Cash flows from operating activities - | | | | |
| continuing | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Operating (loss) / profit | | | (15,883) | 2,201 |
+-----------------------------------------+----------+----------+----------+----------+
| Impairment of goodwill | | | 14,653 | - |
+-----------------------------------------+----------+----------+----------+----------+
| Amortisation of intangibles | | | 2,151 | 2,130 |
+-----------------------------------------+----------+----------+----------+----------+
| Depreciation on property, plant and | | | 848 | 556 |
| equipment | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Profit on disposal of property, plant | | | (38) | (7) |
| and equipment | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Share based payments | | | 212 | 171 |
+-----------------------------------------+----------+----------+----------+----------+
| Movements in working capital: | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| - Decrease in inventories | | | 143 | 1,590 |
+-----------------------------------------+----------+----------+----------+----------+
| - Increase in trade and | | | (217) | (4,858) |
| other receivables | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| - (Decrease) / increase | | | (1,243) | 1,260 |
| in trade and other | | | | |
| payables | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Cash generated from operations | | | 611 | 3,043 |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Income tax paid | | | (1,993) | (734) |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Net cash (outflow)/inflow from | | | (1,382) | 2,309 |
| operating activities | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Cash flows from investing activities | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Payments for property, plant and | | | (675) | (438) |
| equipment | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Proceeds from disposal of property, | | | 86 | 98 |
| plant and equipment | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Acquisition of subsidiaries | | | (3,239) | (12,633) |
+-----------------------------------------+----------+----------+----------+----------+
| Net cash and cash equivalents acquired | 30 | | 372 | 1,356 |
| with subsidiaries | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Net cash outflow from investing | | | (3,456) | (11,617) |
| activities | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Cash flows from financing activities | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Interest paid | | | (910) | (324) |
+-----------------------------------------+----------+----------+----------+----------+
| Interest paid on finance leases | | | (53) | (79) |
+-----------------------------------------+----------+----------+----------+----------+
| Interest received | | | 42 | 72 |
+-----------------------------------------+----------+----------+----------+----------+
| Payments for hire purchase contracts | | | (509) | (357) |
| principals | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Proceeds from bank loans | | | 4,150 | 9,000 |
+-----------------------------------------+----------+----------+----------+----------+
| Repayments of bank loans | | | (1,050) | - |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Net cash inflow from financing | | | 1,670 | 8,312 |
| activities | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Net decrease in cash and cash | | | (3,168) | (996) |
| equivalents | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Cash and cash equivalents at the | | | 1,418 | 2,414 |
| beginning of the year | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Cash and cash equivalents at the end of | | | (1,750) | 1,418 |
| the year | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Cash and cash equivalents comprises: | 19 | | 17 | 1,418 |
| Cash at bank and in hand | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| Bank overdraft | 19 | | (1,767) | - |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
| | | | (1,750) | 1,418 |
+-----------------------------------------+----------+----------+----------+----------+
| | | | | |
+-----------------------------------------+----------+----------+----------+----------+
Notes to the Consolidated Financial Statements at 30 September 2008
General information
Silverdell Group Plc is a company incorporated in Great Britain under the
Companies Act 1985.
Basis of preparation
The annual consolidated financial statements of the Group have been prepared for
the first time in accordance with International Reporting Standards (IFRS) as
adopted by the European Union (EU), (IFRS as adopted by the EU), International
Financial Reporting Interrelation Committee (IFRIC) interpretations and the
Companies Act 1985 applicable to Companies reporting under IFRS.
IFRS 1 "First-time Adoption of International Financial Reporting Standards" has
been applied. The Group's transition date for the adoption of IFRS 1 is 1
October 2006. The Group is required to establish its IFRS Accounting Policies
for the year ended 30 September 2008 and apply these retrospectively to
determine its IFRS balance sheet at the transition date of 1 October 2006 and
the comparative information for the year ended 30 September 2007. Hence the
financial statements have been prepared using accounting policies which have
been applied consistently throughout the year and the preceding year.
An explanation of how the transition to IFRS has affected the reported financial
position and financial performance of the Group is provided in Note 31. There
has been no impact on the Group cash flows.
Going concern
As at , debt of GBP11.2m (2007: GBP7.4m) is long term and is expected to mature
in 2011. In addition the Group has short term borrowings of GBP3.2m comprising
primarily of bank overdrafts and loans of GBP2.8m (see note 21).
The Group obtained a waiver for the period under review from its lenders in
respect of testing of the financial covenants contained within its facilities
agreement for year ended 30 September 2008. Subsequent to the year end the Group
has obtained further waivers from its lenders in respect of testing of the
financial covenant and has agreed revised facilities with its lenders, including
the re-structuring of existing facilities, re-profiled repayments and revised
covenants. As part of these restructured facilities a short term facility of
GBP3.25m has been provided, which is due for repayment on 30 June 2009. This
facility will be repaid from the proceeds of a planned equity placing in 2009,
which certain shareholders have led the Group to believe will be achievable.
If the Group does not undertake the equity placing, and in the absence of other
funding alternatives, the Group would be unable to repay the short term
facility. As a result there exists an uncertainty that casts significant doubt
about the ability of the Group and company to continue as a going concern such
that the Group could be unable to realise its assets and discharge its
liabilities in the normal course of business. Accordingly, assets may be
realised at significantly less than book value and additional liabilities may
arise.
Based on the Group raising additional equity finance in 2009 and the projected
trading for the Group, the directors' have a reasonable expectation that the
Group will have adequate resources to continue in operational existence for the
foreseeable future. For this reason they continue to adopt the going concern
basis in preparing the consolidated financial statements. Therefore, these
financial statements do not include any adjustments that would result if the
going concern basis of preparation is inappropriate.
1. Adoption of new and revised standards
In the current year, the Group has adopted IFRS 7 "Financial Instruments:
Disclosures" which is effective for annual reporting periods beginning on or
after 1 January 2007, and the related amendments to IAS 1 "Presentation of
Financial Statements".
The impact of the adoption of IFRS 7 and the changes to IAS 1 has been to expand
the disclosures provided in these financial statements regarding the Group's
financial instruments and management of capital (see Note 21). Two
Interpretations issued by the International Financial Reporting Interpretations
Committee (IFRIC) are effective for the current period. These are:
IFRIC 10 Interim Financial Reporting and Impairment; and
IFRIC 11 IFRS 2 - Group and Treasury Share Transactions
The adoption of these Interpretations has not led to any material changes in the
Group's accounting policies.
At the date of authorisation of these financial statements, the following
Standards and Interpretations which have not been applied in these financial
statements were in issue but not yet effective:
IFRS 2 Share-based payment - Amendment to vesting conditions and cancellations
IFRS 3 Business Combinations - Comprehensive revision on applying acquisition
method
IFRS 8 Operating Segments
IAS 23 Borrowing Costs (Revised) - Comprehensive revision to prohibit immediate
expensing
IAS 27 Consolidated and separate financial statements - Amendments arising from
IFRS 3 amendment
IAS 28 Investments in Associates- Amendments arising from IFRS 3 amendment
IAS 31 Investments in Joint Ventures - Amendments arising from IFRS 3 amendment
IAS 32 Financial Instruments: Recognition and Measurement - Amendments to
puttable instruments and obligations arising on liquidation
IAS 39 Financial Instruments: Presentation (Amendments)
IFRIC 12 Service Concession Arrangements
IFRIC 13 Customer Loyalty Programmes
IFRIC 14 IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction
IFRIC 15 Agreements for the Construction of Real Estate
IFRIC 16 Hedges of a Net Investment in a Foreign Operation
IFRIC 17 Distributions of Non-cash assets to owners
The Directors anticipate that the adoption of these Standards and
Interpretations in future periods will have no material impact on the financial
statements of the Group.
3.1 Accounting policies
Basis of accounting
The consolidated financial information has been prepared in accordance with
International Financial Reporting Standards (IFRSs). The consolidated financial
information has also been prepared in accordance with IFRSs adopted by the
European Union and therefore the Group financial statements comply with Article
4 of the EU IAS Regulation.
The consolidated financial information has been prepared on the historical cost
basis except for the revaluation of certain financial instruments. The principal
accounting policies adopted are set out below.
IFRS 1 permits companies adopting IFRS for the first time to take certain
exemptions from full retrospective application of IFRS accounting policies.
Described below are the applicable instances where the Group has not opted for
these exemptions:
* Business combinations: The Group has chosen to restate business combinations
that occurred prior to 1 October 2006 to comply with IFRS 3 'Business
Combinations'. As a result that carrying value of goodwill recorded under UK
GAAP as at 1 October 2006 has been amended at transition date.
b. Financial instruments: The Group has applied IAS 32 and IAS 39 from 1
October 2006.
In accordance with IFRS 1 the Group has not revised estimates required under
IFRS that were also required under UK GAAP as at 31 September 2006 and 2007,
and, in addition where estmates were not required under UK GAAP, they have been
based on information known at that time, and not on subsequent events.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the company and entities controlled by the company (its subsidiaries) made up to
30 September each year. Control is achieved where the company has the power to
govern the financial and operating policies of an investee entity so as to
obtain benefits from its activities.
The results of subsidiaries acquired or disposed off during the year are
included in the consolidated income statement from the effective date of
acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used in line with those used by
the Group.
All intra-Group transactions, balances, income and expenses are eliminated on
consolidation.
Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The
cost of the acquisition is measured at the aggregate of the fair values, at the
date of exchange, of assets given, liabilities incurred or assumed, and equity
instruments issued by the Group in exchange for control of the acquiree, plus
any costs directly attributable to the business combination. The acquiree's
identifiable assets, liabilities and contingent liabilities that meet the
conditions for recognition under IFRS 3 are recognised at their fair value at
the acquisition date.
Goodwill arising on acquisition is recognised as an asset and initially measured
at cost, being the excess of the cost of the business combination over the
Group's interest in the net fair value of the identifiable assets, liabilities
and contingent liabilities recognised. If, after reassessment, the Group's
interest in the net fair value of the acquiree's identifiable assets,
liabilities and contingent liabilities exceeds the cost of the business
combination, the excess is recognised immediately in profit or loss.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of
acquisition over the Group's interest in the fair value of the identifiable
assets and liabilities of a subsidiary at the date of acquisition. Goodwill is
initially recognised as an asset at cost and is subsequently measured at cost
less any accumulated impairment losses. Goodwill which is recognised as an asset
is reviewed for impairment at least annually. Any impairment is recognised
immediately in profit or loss and is not subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to each of the
Group's cash-generating units expected to benefit from the synergies of the
combination. Cash-generating units to which goodwill has been allocated are
tested for impairment annually, or more frequently when there is an indication
that the unit may be impaired. If the recoverable amount of the cash-generating
unit is less than the carrying amount of the unit, the impairment loss is
allocated first to reduce the carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro-rata on the basis of the
carrying amount of each asset in the unit. An impairment loss recognised for
goodwill is not reversed in a subsequent period.
Revenue recognition
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for services provided in the normal
course of business, net of discounts, VAT and other sales-related taxes.
Profit is recognised on long-term contracts if the final outcome can be assessed
with reasonable certainty by including in the income statement revenue and
related costs as contract activity progresses. Revenue is calculated by
reference to the value of work performed to date as a proportion of total
contract value.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee. All other
leases are classified as operating leases.
Assets held under finance leases are recognised as assets of the Group at their
fair value or, if lower, at the present value of the minimum lease payments,
each determined at the inception of the lease.
The corresponding liability to the lessor is included in the balance sheet as a
finance lease obligation. Lease payments are apportioned between finance charges
and reduction of the lease obligation so as to achieve a constant rate of
interest on the remaining balance of the liability. Finance charges are charged
directly against income.
Rentals payable under operating leases are charged to income on a straight-line
basis over the term of the relevant lease.
Benefits received and receivable as an incentive to enter into an operating
lease are also spread on a straight-line basis over the lease term.
Borrowing costs
Borrowing costs are recognised in profit or loss in the period in which they are
incurred.
Retirement benefit costs
Payments to defined contribution retirement benefit schemes are charged as an
expense as they fall due.
Taxation
The tax expense represents the sum of the tax currently payable and deferred
tax.
The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
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. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets and
liabilities in a transaction that affects neither the tax profit nor the
accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries, except where the Group is able to
control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current tax assets and liabilities on a net
basis.
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation
and any recognised impairment loss.
Depreciation is charged so as to write off the cost or valuation of assets,
other than land and assets under construction, over their estimated useful
lives, on the following bases:
+--------------------------------+----------------------------------------+
| Leasehold property | 10% on cost |
| | |
+--------------------------------+----------------------------------------+
| Plant and machinery | 10% on cost |
| | |
+--------------------------------+----------------------------------------+
| Office equipment | 16.6%-25% on cost |
| | |
+--------------------------------+----------------------------------------+
| Motor vehicles | 25% on reducing balance |
+--------------------------------+----------------------------------------+
Assets held under finance leases are depreciated over their expected useful
lives on the same basis as owned assets or, where shorter, over the term of the
relevant lease.
The gain or loss arising on the disposal or retirement of an asset is determined
as the difference between the sales proceeds and the carrying amount of the
asset and is recognised in income.
Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication that
those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where the asset does not generate cash
flows that are independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs. An
intangible asset with an indefinite useful life is tested for impairment
annually and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to
be less than its carrying amount, the carrying amount of the asset
(cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised as an expense immediately, unless the relevant asset is carried at
a revalued amount, in which case the impairment loss is treated as a revaluation
decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset
(cash-generating unit) is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in prior years. A reversal of an impairment
loss is recognised as income immediately, unless the relevant asset is carried
at a revalued amount, in which case the reversal of the impairment loss is
treated as a revaluation increase.
Inventories and work in progress
Inventories are stated at the lower of cost and net realisable value. Costs
comprises direct materials and, where applicable, direct labour costs and those
overheads that have been incurred in bringing the inventories to their present
location and condition. Cost is calculated using the weighted average method.
Net realisable value represents the estimated selling price less all estimated
costs of completion and costs to be incurred in marketing, selling and
distribution.
Work in progress on service contracts is stated at cost plus, where the outcome
can be assessed with reasonable certainty, estimated profits attributable to the
stage of completion less provision for any expected losses and progress payments
received on account. Amounts recoverable on long term service contracts, which
are included in trade and other receivables, are stated at the net sales value
of the work done less progress payments received on account. Excess progress
payments are included on trade and other payables. Cumulative costs incurred,
less amounts transferred to cost of sales, less provision for contingencies and
expected future losses on service contracts, are included as long-term service
contract balances in inventories.
Financial instruments
Financial assets and financial liabilities are recognised in the Group's balance
sheet when the Group becomes a party to the contractual provisions of the
instrument.
Trade receivables
Trade receivables are measured at initial recognition at fair value. Appropriate
allowances for estimated irrecoverable amounts are recognised in profit or loss
when there is objective evidence that the asset is impaired.
Investments
Investments in subsidiaries are stated at cost, less provision for any
impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other
short-term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument is
any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities.
Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds
received, net of direct issue costs. Finance charges, including premiums payable
on settlement or redemption and direct issue costs, are accounted for on an
accrual basis in profit or loss using the effective interest rate method and are
added to the carrying amount of the instrument to the extent that they are not
settled in the period in which they arise.
Trade payables
Trade payables are initially measured at fair value.
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received,
net of direct issue costs.
Derivative financial instruments and hedge accounting
The Group's activities expose it primarily to the financial risk of changes in
interest rates. The Group uses interest rate swap contracts to hedge this
exposure. The Group does not use derivative financial instruments for
speculative purposes.
The use of financial derivatives is governed by the Group's policies approved by
the board of directors, which provide written principles on the use of financial
derivatives.
Changes in the fair value of derivative financial instruments that are
designated and effective as hedges of future cash flows are recognised directly
in equity and the ineffective portion is recognised immediately in the income
statement. If the cash flow hedge of a firm commitment or forecasted transaction
results in the recognition of an asset or a liability, then, at the time the
asset or liability is recognised, the associated gains or losses on the
derivative that had previously been recognised in equity are included in the
initial measurement of the asset or liability. For hedges that do not result in
the recognition of an asset or a liability, amounts deferred in equity are
recognised in the income statement in the same period in which the hedged item
affects net profit or loss.
Changes in the fair value of derivative financial instruments that do not
qualify for hedge accounting are recognised in the income statement as they
arise.
Hedge accounting is discontinued when the hedging instrument expires or is sold,
terminated, or exercised, or no longer qualifies for hedge accounting. At that
time, any cumulative gain or loss on the hedging instrument recognised in equity
is retained in equity until the forecasted transaction occurs. If a hedged
transaction is no longer expected to occur, the net cumulative gain or loss
recognised in equity is transferred to net profit or loss for the period.
Provisions
Provisions are recognised when the Group has a present obligation as a result of
a past event, and it is probable that the Group will be required to settle that
obligation. Provisions are measured at the directors' best estimate of the
expenditure required to settle the obligation at the balance sheet date, and are
discounted to present value where the effect is material.
Share-based payments
The Group issues equity-settled share-based payments to certain employees.
Equity-settled share-based payments are measured at fair value (excluding the
effect of non market-based vesting conditions) at the date of grant. The fair
value determined at the grant date of the equity-settled share-based payments is
expensed on a straight-line basis over the vesting period, based on the Group's
estimate of shares that will eventually vest and adjusted for the effect of non
market-based vesting conditions.
Fair value is measured by use of the Black-Scholes model. The expected life used
in the model has been adjusted, based on management's best estimate, for the
effects of non-transferability, exercise restrictions, and behavioural
considerations.
Intangible assets
Customer relationships
Customer relationships are measured as the present value of cash flows
attributable to the relationship after deduction of appropriate contributory
assets charged. The relationship is amortised over its expected useful life,
typically three years.
Order book
Order book is the value of confirmed orders on the date of acquisition after
appropriate costs have been deducted. The order book is amortised over the
period in which it is expected to unwind.
4. Critical accounting judgements and key sources of estimation uncertainty
The preparation of consolidated financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions about the
carrying amount of assets and liabilities and the amount of income and revenue
recognised in the period. Actual results may differ from these estimates.
The key assumptions concerning the future, and other key sources of estimation
uncertainty at the balance sheet date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the
next financial year, are discussed below.
Revenue and profit/margin recognition
The Group's revenue recognition, turnover and long term contracts policies are
set out in the notes above. Management exercises judgement to estimate the total
expected contract costs and determine the percentage of completion in order to
recognise the appropriate revenue and profit in the period. The assessment of
profitability and recognition is assessed on an ongoing basis, which ensures
adequate controls are in place that appropriate amounts are calculated.
Recognition and measurement of intangible assets under IFRS 3 'Business
Combinations'
In order to determine the value of the separately identifiable intangible assets
on the acquisition of a business combination, management are required to make
estimates on secured customer contracts, other contracts and customer
relationships and goodwill. The Group engaged outside independent parties to
perform these calculations and determine the fair value and estimated useful
lives of these assets.
Deferred consideration relating to acquisitions has been included based on
management estimates of the most likely outcome, as set out in Note 23.
Impairment of goodwill and other intangible assets
There are a number of assumptions management have considered in performing
impairment reviews of goodwill and intangible assets. Determining whether
goodwill is impaired requires an estimation of the value in use of the
cash-generating units to which goodwill has been allocated. The value in use
calculation requires the directors to estimate the future cash flows expected to
arise from the cash-generating unit and a suitable discount rate in order to
calculate present value. Note 13 details the assumptions that have been applied
for goodwill.
5. Segmental information
Management consider that the Group comprises two segments - asbestos remediation
and consultancy services.
+--------------------------------------+-------------+-------------+-------------+---------+
| For the year ended 30 September | Asbestos | Consultancy | Unallocated | Group |
| 2008 | remediation | services | | |
| | | | | |
+--------------------------------------+-------------+-------------+-------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+-------------+-------------+-------------+---------+
| Revenue | | | | |
+--------------------------------------+-------------+-------------+-------------+---------+
| Total | 55,680 | 5,871 | - | 61,551 |
| revenue | | | | |
+--------------------------------------+-------------+-------------+-------------+---------+
| Less: between segments | (4) | (169) | - | (173) |
+--------------------------------------+-------------+-------------+-------------+---------+
| | | | | |
+--------------------------------------+-------------+-------------+-------------+---------+
| External | 55,676 | 5,702 | - | 61,378 |
| revenue | | | | |
+--------------------------------------+-------------+-------------+-------------+---------+
| | | | | |
+--------------------------------------+-------------+-------------+-------------+---------+
Sales between segments are charged at prevailing market prices.
+-------------------------------------------+---------------+-------------+-------------+----------+
| For the | Asbestos | Consultancy |Unallocated | |
| year | remediation | services | | |
| ended | | | | Group |
| 30 | | | | |
| September | | | | |
| 2008 | | | | |
| | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | |
| | | | | GBP'000 |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Result | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Operating | 1,856 | 649 | (1,064) | 1,441 |
| profit | | | | |
| before | | | | |
| amortisation | | | | |
| and | | | | |
| non-recurring | | | | |
| items | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Intangible assets amortisation | (1,681) | (470) | - | (2,151) |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Goodwill impairment loss | (13,554) | (1,099) | - | (14,653) |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Non-recurring expenses | - | - | (520) | (520) |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Finance income | 34 | 1 | 7 | 42 |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Finance costs | (83) | (25) | (855) | (963) |
+-------------------------------------------+---------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Loss | (13,428) | (944) | (2,432) | (16,804) |
| before | | | | |
| tax | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Taxation | (304) | (68) | 604 | 231 |
+-------------------------------------------+---------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Loss | (13,732) | (1,012) | (1,828) | (16,573) |
| for the | | | | |
| year | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| At 30 | Asbestos | Consultancy | Unallocated | Group |
| September | remediation | services | | |
| 2008 | | | | |
| | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | |
| | | | | GBP'000 |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Balance | | | | |
| sheet | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Total | 35,692 | 8,021 | 1,158 | 44,871 |
| assets | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Total | (11,582) | (933) | (13,394) | (25,909) |
| liabilities | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Other | 1,180 | 45 | - | 1,225 |
| information | | | | |
| Capital | | | | |
| expenditure | | | | |
| (including | | | | |
| acquisitions) | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
| Depreciation | 623 | 225 | - | 848 |
+-------------------------------------------+---------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+---------------+-------------+-------------+----------+
+-----------------------------------------+-------------+-------------+-------------+----------+
| For the | Asbestos | Consultancy | Unallocated | Group |
| year ended | remediation | services | | |
| 30 | | | | |
| September | | | | |
| 2007 | | | | |
| | | | | |
+-----------------------------------------+-------------+-------------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | |
| | | | | GBP'000 |
+-----------------------------------------+-------------+-------------+-------------+----------+
| Revenue | | | | |
+-----------------------------------------+-------------+-------------+-------------+----------+
| Total revenue | 33,944 | 4,554 | - | 38,498 |
+-----------------------------------------+-------------+-------------+-------------+----------+
| Less: between segments | - | - | - | - |
+-----------------------------------------+-------------+-------------+-------------+----------+
| | | | | |
+-----------------------------------------+-------------+-------------+-------------+----------+
| External revenue | 33,944 | 4,554 | - | 38,498 |
+-----------------------------------------+-------------+-------------+-------------+----------+
| | | | | |
+-----------------------------------------+-------------+-------------+-------------+----------+
+-------------------------------------------+-------------+-------------+-------------+----------+
| For the | Asbestos | Consultancy | Unallocated | Group |
| year ended | remediation | services | | |
| 30 | | | | |
| September | | | | |
| 2007 | | | | |
| | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Result | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Operating | 4,894 | 710 | (1,273) | 4,331 |
| profit | | | | |
| before | | | | |
| amortisation | | | | |
| and | | | | |
| non-recurring | | | | |
| items | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Intangible assets amortisation | (1,486) | (644) | - | (2,130) |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Finance income | 9 | 4 | 59 | 72 |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Finance costs | (69) | (32) | (745) | (846) |
+-------------------------------------------+-------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Profit / | 3,348 | 38 | (1,959) | 1,427 |
| (loss) | | | | |
| before tax | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Taxation | (985) | (15) | 330 | (670) |
+-------------------------------------------+-------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Profit / | 2,363 | 23 | (1,629) | 757 |
| (loss) for | | | | |
| the year | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
+-------------------------------------------+-------------+-------------+-------------+----------+
| For the | Asbestos | Consultancy | Unallocated | Group |
| year ended | remediation | services | | |
| 30 | | | | |
| September | | | | |
| 2007 | | | | |
| | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Balance | | | | |
| sheet | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Total | 60,190 | 3,704 | 124 | 64,018 |
| assets | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Total | (10,996) | (1,377) | (17,560) | (29,933) |
| liabilities | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Other | 3,020 | 801 | - | 3,821 |
| information | | | | |
| Capital | | | | |
| expenditure | | | | |
| (including | | | | |
| acquisitions) | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
| Depreciation | 356 | 200 | - | 556 |
+-------------------------------------------+-------------+-------------+-------------+----------+
| | | | | |
+-------------------------------------------+-------------+-------------+-------------+----------+
As the Group's activities are almost entirely domestic, no geographical segment
analysis is presented.
6. Operating profit / (loss)
+----------------------------------------------------------+-+----------+----------+
| | | GBP'000 | GBP'000 |
+----------------------------------------------------------+-+----------+----------+
| Operating profit / (loss) is | | | |
| stated after charging/ | | | |
| (crediting): | | | |
+----------------------------------------------------------+-+----------+----------+
| Goodwill impairment loss | | 14,653 | - |
+----------------------------------------------------------+-+----------+----------+
| Share based payment charge | | 212 | 171 |
+----------------------------------------------------------+-+----------+----------+
| Amortisation of intangible | | 2,151 | 2,130 |
| assets (see note 13) | | | |
+----------------------------------------------------------+-+----------+----------+
| Depreciation of: | | | |
+----------------------------------------------------------+-+----------+----------+
| - owned assets | | 442 | 241 |
+----------------------------------------------------------+-+----------+----------+
| - assets held under finance | | 406 | 315 |
| leases | | | |
+----------------------------------------------------------+-+----------+----------+
| Auditors' | | | |
| remuneration: Fees | | | |
| payable to the | | | |
| company's auditors | | | |
| for the | | | |
+----------------------------------------------------------+-+----------+----------+
| -Audit of company's annual | | 30 | 25 |
| accounts | | | |
+----------------------------------------------------------+-+----------+----------+
| - Audit of company's | | 80 | 105 |
| subsidiaries, pursuant to | | | |
| legislation | | | |
+----------------------------------------------------------+-+----------+----------+
| - Other services relating to | | 24 | 28 |
| tax compliance | | | |
+----------------------------------------------------------+-+----------+----------+
| Hire of plant and machinery | | 1,751 | 1,343 |
+----------------------------------------------------------+-+----------+----------+
| Operating lease rentals - | | 298 | 80 |
| land and buildings | | | |
+----------------------------------------------------------+-+----------+----------+
| Profits on disposal of fixed | | (38) | (7) |
| assets | | | |
+----------------------------------------------------------+-+----------+----------+
| | | | |
+----------------------------------------------------------+-+----------+----------+
In addition to the above, the Company paid fees of GBPNil (2007: GBP308,000) to
Deloitte LLP and associates in respect of corporate finance fees not charged to
the profit and loss account.
7. Staff costs including directors' remuneration
Directors' remuneration and transactions
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| | Salary | Benefits | Performance | Total | Pension | Total | Total |
| | and | GBP'000 | bonus | emoluments | contributions | GBP'000 | GBP'000 |
| | fees | | GBP'000 | GBP'000 | GBP'000 | | |
| | GBP'000 | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| Non-executive | | | | | | | |
| directors: | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| David | 50 | - | - | 50 | - | 50 | 50 |
| Williams* | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| Gordon | 30 | - | - | 30 | - | 30 | 27 |
| Morrison** | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| Mark | 30 | - | - | 30 | - | 30 | 30 |
| Watts* | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| Executive | | | | | | | |
| directors: | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| Danny | 200 | 14 | - | 214 | 18 | 232 | 370 |
| Spicer | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| Sean | 175 | 14 | - | 189 | 18 | 207 | 330 |
| Nutley | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| Chris | 140 | 3 | - | 143 | 20 | 163 | 107 |
| Sims | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| Total | 625 | 31 | - | 656 | 56 | 712 | 914 |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
| | | | | | | | |
+-------------------------------------------+---------+----------+-------------+------------+---------------+---------+---------+
*payable to Marwyn LLP
**payable to Chaldean Management Ltd
The pension contributions disclosed above were all in respect of money purchase
arrangements.
Options over ordinary shares
The directors had the following interests in share options during the year ended
30 September 2008:
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | As at 1 | Granted | Exercised | As at 1 | Exercise | Exercise |
| | October | in | in period | October | period | price |
| | | period | | | from/to | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| Danny | 226,000 | - | - | 226,000 | 2009-2013 | 80.5p |
| Spicer | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | 50,000 | - | - | 50,000 | 2010-2014 | 150.0p |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | 276,000 | - | - | 276,000 | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| Sean | 226,000 | - | - | 226,000 | 2009-2013 | 80.5p |
| Nutley | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | 50,000 | - | - | 50,000 | 2010-2014 | 150.0p |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | 276,000 | - | - | 276,000 | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| Chris | 100,000 | - | - | 100,000 | 2010-2014 | 157.0p |
| Sims | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | 100,000 | - | - | 100,000 | 2010-2014 | 150.0p |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | 200,000 | - | - | 200,000 | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | 752,000 | - | - | 752,000 | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
| | | | | | | |
+------------------------------------+----------+----------+-----------+----------+-----------+----------+
The market price of the company's shares as at 30 September 2008 was 32.5p (30
September 2007: 153.5p) and the range during the year was 32.5p to 160.0p (2007:
99.0p to 166.0p).
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Employees | | | Number | Number |
+------------------------------------------+----------+----------+----------+----------+
| Average number of persons (including directors) employed by the Group in | |
| the year: | |
+---------------------------------------------------------------------------+----------+
| Operatives | | | 502 | 251 |
| and | | | | |
| supervisors | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Contract | | | 15 | 38 |
| management | | | | |
| and | | | | |
| estimating | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Surveyors | | | 135 | 73 |
| and analysts | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Administrative staff | | | 90 | 70 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | 742 | 432 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
The payroll costs in respect of the employees included in the table above were:
+-------------------------------------------+----------+----------+----------+----------+
| | | | GBP'000 | GBP'000 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Salaries | | | 23,591 | 14,356 |
| and wages | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Social | | | 2,768 | 1,663 |
| security | | | | |
| costs | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Pension | | | 158 | 141 |
| costs | | | | |
| (defined | | | | |
| contribution) | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Share based | | | 212 | 171 |
| payment | | | | |
| charge | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| | | | 26,729 | 16,331 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
Certain subsidiary undertakings of the Group had operated defined contribution
pension schemes. The assets of the schemes were held separately from those of
the Group by an independently administered fund.
Remuneration of key management personnel
In accordance with IAS 24 Related Party Disclosures, key management personnel
are those persons having authority and responsibility for planning, directing
and controlling the activities of the entity, directly or indirectly, including
any director (executive and non executive) of the Group.
+------------------------------------------------------------+----------+----------+
| | GBP'000 | GBP'000 |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| Short-term employee benefits | 1,058 | 1,127 |
+------------------------------------------------------------+----------+----------+
| Post-employment benefits | 73 | 53 |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
Key management personnel include members of the Board and the Managing
Directors' of the principal subsidiaries.
8. Finance income
An analysis of the Group's interest revenue for the year is as follows:
+------------------------------------------------------------+----------+----------+
| | GBP'000 | GBP'000 |
+------------------------------------------------------------+----------+----------+
| Interest revenue: | | |
+------------------------------------------------------------+----------+----------+
| Bank deposits | 42 | 72 |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| Total interest revenue | 42 | 72 |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
9. Finance costs
+---------------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Interest on bank | | 910 | 324 |
| overdrafts and loans | | | |
+---------------------------------------------------+----------+----------+----------+
| Interest on | | 53 | 79 |
| obligation under | | | |
| finance leases | | | |
+---------------------------------------------------+----------+----------+----------+
| Finance charges on | | - | 443 |
| deferred | | | |
| consideration | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Total interest | | 963 | 846 |
| expense | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
10. Tax on (loss)/profit on ordinary activities
Income tax recognised in profit or loss
+---------------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| Tax credit / | | | |
| (expense) comprises: | | | |
+---------------------------------------------------+----------+----------+----------+
| United Kingdom | | (351) | (1,357) |
| corporation tax based | | | |
| on the (loss) / | | | |
| profit for the year | | | |
+---------------------------------------------------+----------+----------+----------+
| Adjustment in respect | | 36 | - |
| of previous years | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Total current tax | | (315) | (1,357) |
| expense | | | |
+---------------------------------------------------+----------+----------+----------+
| Deferred tax income | | 546 | 687 |
| relating to the | | | |
| origination and | | | |
| reversal of temporary | | | |
| differences | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Total tax credit / | | 231 | (670) |
| (expense) | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
The charge for the year can be reconciled to the profit per the income statement
as follows:
+-------------------------------------------+----------+----------+----------+----------+
| | GBP'000 | | GBP'000 | % |
| | | % | | |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| (Loss)/profit | (16,804) | | 1,427 | |
| before tax | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Income tax | 4,873 | (29) | (428) | (30) |
| credit / | | | | |
| (expense) | | | | |
| calculated | | | | |
| at the | | | | |
| standard | | | | |
| rate | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Share based payment charge | (117) | - | - | (7) |
+-------------------------------------------+----------+----------+----------+----------+
| Effect of | (4,681) | 28 | (99) | - |
| expenses | | | | |
| that are | | | | |
| not | | | | |
| deductible | | | | |
| in | | | | |
| determining | | | | |
| taxable | | | | |
| profit | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Finance | - | - | (133) | (9) |
| changes in | | | | |
| deferred | | | | |
| consideration | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Other | (48) | - | - | - |
+-------------------------------------------+----------+----------+----------+----------+
| Prior year | 36 | (2) | (10) | (1) |
| adjustment | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Income tax | 231 | (1) | (670) | (47) |
| credit | | | | |
| recognised | | | | |
| in profit | | | | |
| or loss | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
The tax rate used for 2008 is the corporate tax rate of 30% until April when the
tax rate changed to 28% (2007: 30%) payable by corporate entities in United
Kingdom on taxable profits under tax law in that jurisdiction.
The Group incurs its (loss) / earns its profit primarily in the UK. Therefore
the tax rate used for the (loss) / profit on ordinary activities is the standard
rate for UK corporation tax. The weighted average standard rate for 2008 was 29%
(2007: 30%).
The Group's planned level of capital investment is expected to remain at similar
levels of investment. Therefore, it expects to be able to claim allowances in
excess of depreciation in future years, at a similar level to the current year.
There were no unrecognised deferred tax assets.
The movement in deferred tax was as follows:
+---------------------------------------------------+----------+----------+----------+
| | | | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| At 1 October 2006 | | | 914 |
+---------------------------------------------------+----------+----------+----------+
| Credited to income | | | (687) |
| statement | | | |
+---------------------------------------------------+----------+----------+----------+
| Credited to equity | | | (169) |
| reserve | | | |
+---------------------------------------------------+----------+----------+----------+
| Charged to hedging | | | 24 |
| reserve | | | |
+---------------------------------------------------+----------+----------+----------+
| Acquisition of | | | 1,028 |
| subsidiary | | | |
| undertakings | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| At 1 October 2007 | | | 1,110 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Credited to income | | | (546) |
| statement | | | |
+---------------------------------------------------+----------+----------+----------+
| Charged to equity | | | 169 |
| reserve | | | |
+---------------------------------------------------+----------+----------+----------+
| Credited to hedging | | | (35) |
| reserve | | | |
+---------------------------------------------------+----------+----------+----------+
| Acquisition of | | | 30 |
| subsidiary | | | |
| undertakings | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| At 30 September 2008 | | | 728 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
Deferred tax liability comprises:
+---------------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Accelerated tax | | 83 | 30 |
| depreciation | | | |
+---------------------------------------------------+----------+----------+----------+
| Intangible assets | | 656 | 1,348 |
+---------------------------------------------------+----------+----------+----------+
| Other | | (11) | (268) |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| | | 728 | 1,110 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
11. Non recurring items, impairments and amortisation
Non-recurring items, impairments and amortisation are shown separately on the
face of the income statement in order to reflect the Group's underlying
financial performance. The items comprise the following:
+---------------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Goodwill impairment | | (14,653) | - |
+---------------------------------------------------+----------+----------+----------+
| Amortisation of | | (2,151) | (2,130) |
| intangible assets | | | |
+---------------------------------------------------+----------+----------+----------+
| Non-recurring | | (520) | - |
| expenses | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| | | (17,324) | (2,130) |
+---------------------------------------------------+----------+----------+----------+
| Related income tax | | - | - |
| credit | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Impact on post tax | | (17,324) | (2,130) |
| loss | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
The goodwill impairment loss is explained in note 13. Non-recurring expenses
comprise abortive acquisition costs and costs associated with the renegotiation
of the Group's banking facilities.
12. Earnings per share
Basic earnings per share is calculated by dividing the earnings attributable to
ordinary shareholders by the weighted average number of ordinary shares during
the year, determined in accordance with the provisions of IAS 33 "Earnings per
share".
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue on the assumption of conversion of all
dilutive potential ordinary shares. The Group has only one category of dilutive
potential ordinary shares, being share options granted where the exercise price
is less than the average price of the company's ordinary shares during the year.
Adjusted basic earnings per share is calculated by dividing the earnings
attributed to ordinary shareholders, before intangible assets amortisation,
share-based payment charges, non-recurring expenses and finance charges on
deferred consideration, by the weighted average number of ordinary shares during
the year.
+----------------------------------------------------+----------+----------+---------+---------+----------+---------+
| Earnings | GBP'000 | earnings | diluted | GBP'000 | Earnings | diluted |
| | | | | | per | pence |
| | | per | pence | | share | |
| | | share | | | basic | |
| | | basic | | | pence | |
| | | pence | | | | |
+----------------------------------------------------+----------+----------+---------+---------+----------+---------+
| | | | | | | |
+----------------------------------------------------+----------+----------+---------+---------+----------+---------+
| (Loss)/earnings | (16,573) | (37.2) | (37.2) | 757 | 2.1 | 1.9 |
| attributable to | | | | | | |
| ordinary | | | | | | |
| shareholders | | | | | | |
+----------------------------------------------------+----------+----------+---------+---------+----------+---------+
| Non | 16,857 | 37.8 | 37.2 | 1,611 | 4.4 | 4.1 |
| recurring | | | | | | |
| items, | | | | | | |
| impairment, | | | | | | |
| amortisation | | | | | | |
| and share | | | | | | |
| based | | | | | | |
| payments | | | | | | |
+----------------------------------------------------+----------+----------+---------+---------+----------+---------+
| Finance | - | - | - | 443 | 1.2 | 1.1 |
| charges | | | | | | |
| on | | | | | | |
| deferred | | | | | | |
| consideration | | | | | | |
+----------------------------------------------------+----------+----------+---------+---------+----------+---------+
| | | | | | | |
+----------------------------------------------------+----------+----------+---------+---------+----------+---------+
| Profit | 284 | 0.6 | - | 2,811 | 7.7 | 7.1 |
| for | | | | | | |
| adjusted | | | | | | |
| earnings | | | | | | |
| per | | | | | | |
| share | | | | | | |
+----------------------------------------------------+----------+----------+---------+---------+----------+---------+
| | | | | | | |
+----------------------------------------------------+----------+----------+---------+---------+----------+---------+
The adjusted numbers have been reported in order that the impact of the above
charges against reported (loss) / profit can be fully appreciated.
Number of shares
+---------------------------------------------------+----------+------------+------------+
| | | No. | No. |
+---------------------------------------------------+----------+------------+------------+
| Weighted average | | 44,550,187 | 36,479,265 |
| number of ordinary | | | |
| shares used in | | | |
| calculation of basic | | | |
| earnings per share | | | |
| (including | | | |
| contingently issuable | | | |
| shares) | | | |
+---------------------------------------------------+----------+------------+------------+
| | | | |
+---------------------------------------------------+----------+------------+------------+
| Effect of dilutive | | | |
| potential ordinary | | | |
| shares: | | | |
+---------------------------------------------------+----------+------------+------------+
| Share options | | 708,936 | 2,361,897 |
+---------------------------------------------------+----------+------------+------------+
| | | | |
+---------------------------------------------------+----------+------------+------------+
| Weighted average | | 45,259,123 | 38,841,162 |
| number of ordinary | | | |
| shares used in | | | |
| calculation of | | | |
| diluted earnings per | | | |
| share | | | |
+---------------------------------------------------+----------+------------+------------+
| | | | |
+---------------------------------------------------+----------+------------+------------+
| | | | |
+---------------------------------------------------+----------+------------+------------+
13. Goodwill
+------------------------------------------------------------+----------+----------+
| | | GBP'000 |
+------------------------------------------------------------+----------+----------+
| Cost | | |
+------------------------------------------------------------+----------+----------+
| At 1 October 2006 | | 17,525 |
+------------------------------------------------------------+----------+----------+
| Additions through acquisitions | | 19,602 |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| At 30 September 2007 | | 37,127 |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| At 1 October 2007 | | 37,127 |
+------------------------------------------------------------+----------+----------+
| Additions through acquisitions | | 984 |
| (note 30) | | |
+------------------------------------------------------------+----------+----------+
| Adjustment to provision for | | (2,482) |
| deferred consideration (note | | |
| 23) | | |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| At 30 September 2008 | | 35,629 |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| | | GBP'000 |
+------------------------------------------------------------+----------+----------+
| Accumulated impairment losses | | |
+------------------------------------------------------------+----------+----------+
| At 1 October 2006 and 30 | | - |
| September 2007 | | |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| At 1 October 2007 | | - |
+------------------------------------------------------------+----------+----------+
| Impairment losses for the year | | (14,653) |
| | | |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| At 30 September 2008 | | (14,653) |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| Carrying amount | | |
+------------------------------------------------------------+----------+----------+
| At 30 September 2008 | | 20,976 |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
| At 30 September 2007 | | 37,127 |
+------------------------------------------------------------+----------+----------+
| | | |
+------------------------------------------------------------+----------+----------+
+---------------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| Asbestos remediation | | 15,690 | 30,742 |
+---------------------------------------------------+----------+----------+----------+
| Consultancy services | | 5,286 | 6,385 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| | | 20,976 | 37,127 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
The Group tests goodwill bi-annually for impairment or more frequently if there
are indications that goodwill might be impaired. Goodwill is allocated for
impairment testing to cash generating units (CGU) which reflects how it is
monitored for internal management purposes. The recoverable amounts of the CGUs
are determined from value in use calculations. The key assumptions for the value
in use calculations are those regarding the discount rates and growth rates for
the period. Management estimates discount rates using pre-tax rates that reflect
current market assessments of the time value of money and the risks specific to
the CGUs, equivalent to a real post tax discount rate which average 8.5% (2007:
7.5%). The discount rate has been determined on the basis of the current rate of
debt borrowings. The growth rates are based on industry growth forecasts and
long-term growth in gross domestic product.
The Group prepares cash flow forecasts derived from the most recent financial
budgets approved by management for the next three years and extrapolates cash
flows for the following years based on an estimated annual growth rate of 2.4%.
The rates do not exceed the average long-term growth rate for the relevant
markets. The rates used to discount the cash flows in both 2007 and 2008 for all
CGUs have been based on the Group's weighted average cost of capital.
At 30 September 2008, before impairment testing goodwill was allocated to the
Kitsons Environmental Europe Limited ("Kitsons"), Silverdell (UK) Limited
("Silverdell UK") and Redhill Analysis Limited ("Redhill") CGUs. In the light of
challenging market conditions, the Group has revised its cashflow forecasts for
these CGUs.
The goodwill relating to these CGUs has therefore been reduced to its
recoverable amount by recognising impairment losses as follows:
+----------------------------------------+----------+
| | GBP'000 |
+----------------------------------------+----------+
| | |
+----------------------------------------+----------+
| Silverdell | 9,990 |
| UK | |
+----------------------------------------+----------+
| Kitsons | 3,564 |
+----------------------------------------+----------+
| Redhill | 1,099 |
+----------------------------------------+----------+
| | |
+----------------------------------------+----------+
| | 14,653 |
+----------------------------------------+----------+
| | |
+----------------------------------------+----------+
14. Other intangible assets
+------------------------------------------+-------+------------+-----------+----------+
| | | Order | Customer | Total |
| | | Backlog | Contracts | |
+------------------------------------------+-------+------------+-----------+----------+
| Cost | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| At 1 October | | 967 | 2,184 | 3,151 |
| 2006 | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| Acquisitions | | 513 | 3,250 | 3,763 |
| through | | | | |
| business | | | | |
| combinations | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| At 1 October | | 1,480 | 5,434 | 6,914 |
| 2007 and 30 | | | | |
| September | | | | |
| 2008 | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| Accumulated | | | | |
| amortisation | | | | |
| and | | | | |
| impairment | | | | |
| losses | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| At 1 October | | 185 | 105 | 290 |
| 2006 | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| Amortisation | | 1,011 | 1,119 | 2,130 |
| charge | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| At 30 | | 1,196 | 1,224 | 2,420 |
| September | | | | |
| 2007 | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| Amortisation | | 276 | 1,875 | 2,151 |
| charge | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| At 30 | | 1,472 | 3,099 | 4,571 |
| September | | | | |
| 2008 | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| Carrying | | | | |
| amount | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| At 30 | | 8 | 2,335 | 2,343 |
| September | | | | |
| 2008 | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| At 30 | | 284 | 4,210 | 4,494 |
| September | | | | |
| 2007 | | | | |
+------------------------------------------+-------+------------+-----------+----------+
| | | | | |
+------------------------------------------+-------+------------+-----------+----------+
15. Property, plant and equipment
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | Leasehold | Motor | Office | Plant | Total |
| | property | vehicles | equipment | and | GBP'000 |
| | GBP'000 | GBP'000 | GBP'000 | machinery | |
| | | | | GBP'000 | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Cost | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| At | 3 | 475 | 98 | 467 | 1,043 |
| 1 | | | | | |
| October | | | | | |
| 2006 | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Additions | 69 | 633 | 85 | 234 | 1,021 |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Disposals | - | (173) | - | - | (173) |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Acquisitions | 143 | 857 | 551 | 1,249 | 2,800 |
| through | | | | | |
| business | | | | | |
| combinations | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| At | 215 | 1,792 | 734 | 1,950 | 4,691 |
| 1 | | | | | |
| October | | | | | |
| 2007 | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Additions | 14 | 44 | 119 | 498 | 675 |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Disposals | - | (388) | - | - | (388) |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Acquisitions | 400 | 150 | - | - | 550 |
| through | | | | | |
| business | | | | | |
| combinations | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| At | 629 | 1,598 | 853 | 2,448 | 5,528 |
| 30 | | | | | |
| September | | | | | |
| 2008 | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Accumulated | | | | | |
| depreciation | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| At | 1 | 13 | 5 | 10 | 29 |
| 1 | | | | | |
| October | | | | | |
| 2006 | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Disposals | - | (82) | - | - | (82) |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Acquisitions | 54 | 385 | 334 | 935 | 1,708 |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Depreciation | 7 | 342 | 86 | 121 | 556 |
| charge for | | | | | |
| the year | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| At | 62 | 658 | 425 | 1,066 | 2,211 |
| 30 | | | | | |
| September | | | | | |
| 2007 | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Disposals | - | (340) | - | - | (340) |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Depreciation | 40 | 452 | 130 | 226 | 848 |
| charge for | | | | | |
| the year | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| At | 102 | 770 | 555 | 1,292 | 2,719 |
| 30 | | | | | |
| September | | | | | |
| 2008 | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| Carrying | | | | | |
| amount | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| At | 527 | 828 | 298 | 1,156 | 2,809 |
| 30 | | | | | |
| September | | | | | |
| 2008 | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| At | 153 | 1,134 | 309 | 884 | 2,480 |
| 30 | | | | | |
| September | | | | | |
| 2007 | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
| | | | | | |
+------------------------------------------+-----------+----------+-----------+-----------+----------+
The Group does not have any of its property and equipment pledged as security
over bank loans.
The net book value of assets held under finance leases comprise GBP845,000
(2007: GBP1,284,000).
16. Inventories
+---------------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Raw materials and | | 277 | 203 |
| consumables | | | |
+---------------------------------------------------+----------+----------+----------+
| Work in progress | | 886 | 1,075 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| | | 1,163 | 1,278 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
The cost of inventories recognised as an expense and included in 'cost of sales'
amounted to GBP5,388,000 (2007: GBP2,647,000). The Directors consider that the
carrying amount of inventories approximates to their fair value.
17. Derivative financial (liabilities) / assets
+---------------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Interest rate swap | | (41) | 86 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
The notional principal amounts of the outstanding interest rate swap contracts
at 30 September 2008 were GBP3,750,000 (2007: GBP4,500,000).
At 30 September 2008, the fixed interest rate was 5.8% and the main floating
rates were LIBOR. Gains and losses recognised in the hedging reserve in equity
on the interest rate swap at 30 September 2008 will be released to the income
statement upon the repayment of the bank borrowings.
18. Trade and other receivables
+------------------------------------------+----------+----------+----------+----------+
| | | | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+----------+
| Non-current | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Other | | | 1,001 | 1,001 |
| receivables | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Total | | | 1,001 | 1,001 |
| Non-Current | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Current | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Trade | | | 15,496 | 16,155 |
| receivables | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Less: | | | (708) | (687) |
| provision | | | | |
| for | | | | |
| impairment | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Trade | | | 14,788 | 15,468 |
| receivables | | | | |
| net | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Other | | | 298 | 365 |
| receivables | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Prepayments | | | 1,476 | 301 |
| and accrued | | | | |
| income | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Total | | | 16,562 | 16,134 |
| Current | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Total | | | 17,563 | 17,135 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
Amounts recoverable under long term contracts included in trade debtors above:
+------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Long-term | | | |
| contract | | | |
| balances | | | |
+------------------------------------------+----------+----------+----------+
| Net cost | | 16,442 | 8,646 |
| less | | | |
| foreseeable | | | |
| losses | | | |
+------------------------------------------+----------+----------+----------+
| Less | | (14,958) | (7,408) |
| applicable | | | |
| payments on | | | |
| account | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| | | 1,484 | 1,238 |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
The average credit period taken on sales is 66 days (2007: 82 days). The Group
has different provision policies for its various divisions which have been
determined by references to past default experience and specific provisions are
raised after taking an individual view to debts recoverability.
Due to the nature of the Group's operations, it is common practice for customers
to hold retentions in respect to contracts completed. Retentions held by
customers as at 30 September 2008 were GBP904,000 (2007: GBP390,000).
The Group's exposure to credit risk and impairment losses related to trade and
other receivables are disclosed in Note 21.
Under the normal course of the business, the Group does not charge interest on
its overdue receivables.
The Directors consider that the carrying amount of trade and other receivables
approximates to their fair value.
19. Analysis of net debt position
+-----------------------------------------+---------+---------+----------+----------+
| | GBP'000 | | Other | 2008 |
| | | Cash | non-cash | |
| | | flow | changes | GBP'000 |
| | | | GBP'000 | |
| | | GBP'000 | | |
+-----------------------------------------+---------+---------+----------+----------+
| | | | | |
+-----------------------------------------+---------+---------+----------+----------+
| Cash | 1,418 | (1,401) | - | 17 |
| at | | | | |
| bank | | | | |
| and | | | | |
| in | | | | |
| hand | | | | |
+-----------------------------------------+---------+---------+----------+----------+
| | | | | |
+-----------------------------------------+---------+---------+----------+----------+
| | | | | |
+-----------------------------------------+---------+---------+----------+----------+
| | | | | |
+-----------------------------------------+---------+---------+----------+----------+
| Bank | (9,000) | (3,100) | - | (12,100) |
| loans | | | | |
+-----------------------------------------+---------+---------+----------+----------+
| Bank | - | (1,767) | - | (1,767) |
| overdraft | | | | |
+-----------------------------------------+---------+---------+----------+----------+
| Hire | (1,011) | 509 | (40) | (542) |
| purchase | | | | |
| lease | | | | |
| obligations | | | | |
+-----------------------------------------+---------+---------+----------+----------+
| | | | | |
+-----------------------------------------+---------+---------+----------+----------+
| | (8,593) | (5,759) | (40) | (14,392) |
+-----------------------------------------+---------+---------+----------+----------+
| | | | | |
+-----------------------------------------+---------+---------+----------+----------+
The Group's exposure to interest rate risks and a sensitivity analysis for
financial assets and liabilities is disclosed in Note 21.
20. Borrowings
+------------------------------------------+----------+----------+----------+----------+
| | | | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+----------+
| Non-current | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Bank loans | | | 11,050 | 6,850 |
+------------------------------------------+----------+----------+----------+----------+
| Obligations | | | 120 | 529 |
| under hire | | | | |
| purchase | | | | |
| contracts | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | 11,170 | 7,379 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Current | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Bank loans | | | 2,819 | 2,150 |
| and | | | | |
| overdrafts | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Obligations | | | 422 | 483 |
| under hire | | | | |
| purchase | | | | |
| contracts | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | 3,241 | 2,633 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Total | | | 14,411 | 10,012 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
Further information on the principal features of the Group's borrowings is set
out in Note 21.
The Group's bank overdraft and loan facilities are secured by debentures over
the assets of the Group. Hire purchase liabilities are secured on the assets to
which the contracts relate.
The bank loan is at both fixed and variable rates of interest. GBP3,750,000 is
subject to an interest rate swap; the amount amortises by GBP250,000 per quarter
and the rate on the amortised amount is fixed at 5.8%. The remainder of the loan
is at a variable rate over LIBOR. The overdraft is at variable rate over Bank
base rate. The debentures agreement includes a fixed and floating charge over
the assets of the Group. The finance leases are at variable rates of interest.
The weighted average interest rate on the fixed rate facilities is 5.8% for a
weighted average period of four years. No interest is payable on the deferred
consideration.
The Group had the following committed undrawn borrowing facilities at 30
September 2008:
+------------------------------------------+----------+----------+----------+----------+
| | | | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+----------+
| Expiry date | | | | |
+------------------------------------------+----------+----------+----------+----------+
| In one year | | | 1,152 | 8,000 |
| or less | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
As at 30 September 2008, the Group had an undrawn committed revolving credit
facility of GBP1,152,000 (2007: GBP6,000,000) and an overdraft facility of
GBPNil (2007: GBP2,000,000), all of which expires within one year.
The Group obtained a waiver for the period under review from its lenders in
respect of the testing of the financial covenants contained within its borrowing
agreements as at 30 September 2008. Subsequent to the year end, the Group
concluded its discussions with lenders for the amendment of its borrowing
agreements (please refer to Note 2).
21. Financial instruments
(a) Financial risk management
All companies are exposed to capital and market risk, but the Board considers
the Group's key elements of financial risk to be:
- Credit risk
- Liquidity risk
- Interest rate risk
This note presents information about the Group's exposure to each of the above
risks, the Group's management of capital, and the Group's objectives, policies
and procedures for measuring and managing risk. Please refer also to the
principal business risks in the Directors' report on pages 13 to 15.
Capital risk management
The Board is responsible for overall Group strategy, acquisition and divestment
policy, approval of major capital expenditure projects and consideration of
significant financing matters. The Board manages its capital to ensure that
entities in the Group will be able to continue as a going concern while
maximising the return to stakeholders as well as sustaining the future
development of the business. In order to maintain or adjust the capital
structure, the Group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
The capital structure of the Group consists of debt, which includes the
borrowings disclosed in Note 20, cash and cash equivalents and equity
attributable to equity holders of the parent, comprising issued capital,
reserves and retained earnings as disclosed in Notes 24 and 25 respectively.
Market risk
Market risk is the risk that changes in the market prices, such as foreign
exchange rates and interest rates, will affect the Group's income or the value
of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable
parameters, while optimising the return on risk.
The Group's activities expose it mainly to the financial risks of changes in
interest rates. The Board reviews and agrees the policy for managing interest
rate risk and foreign currency risk and the potential impact of any significant
economic changes are discussed at monthly Board meetings.
The Group reviews its treasury position daily, placing any surplus cash on
short-term deposits.
(b) Categories of financial instruments
Details of the significant accounting policies and methods adopted, including
the criteria for recognition, the basis of measurement and the basis on which
income and expenses are recognised in respect of each class of financial asset,
financial liability and equity instrument are disclosed in Note 3 to the
financial statements.
+------------------------------------------+----------+----------+----------+
| | | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+
| Financial | | | |
| assets(1) | | | |
+------------------------------------------+----------+----------+----------+
| At amortised | | | |
| cost: | | | |
+------------------------------------------+----------+----------+----------+
| Loans and | | 13,303 | 14,230 |
| receivables | | | |
+------------------------------------------+----------+----------+----------+
| Cash and | | 17 | 1,418 |
| cash | | | |
| equivalents | | | |
+------------------------------------------+----------+----------+----------+
| Derivative | | - | 86 |
| financial | | | |
| instruments | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
| Total | | 13,320 | 15,734 |
| financial | | | |
| assets | | | |
+------------------------------------------+----------+----------+----------+
| | | | |
+------------------------------------------+----------+----------+----------+
(1) Financial assets exclude prepayments, other debtors and other non-current
receivables.
+-----------------------------------------------------------+----------+----------+----------+
| Financial | | GBP'000 | GBP'000 |
| liabilities(2) | | | |
+-----------------------------------------------------------+----------+----------+----------+
| At amortised | | | |
| cost: | | | |
+-----------------------------------------------------------+----------+----------+----------+
| | | 4,442 | 3,822 |
| Trade | | | |
| payables | | | |
+-----------------------------------------------------------+----------+----------+----------+
| | | 542 | 1,012 |
| Obligations | | | |
| under hire | | | |
| purchase | | | |
| leases | | | |
+-----------------------------------------------------------+----------+----------+----------+
| | | 13,869 | 9,000 |
| Other | | | |
| borrowings | | | |
| and | | | |
| overdrafts | | | |
+-----------------------------------------------------------+----------+----------+----------+
| Deferred | | 317 | 5,649 |
| consideration | | | |
+-----------------------------------------------------------+----------+----------+----------+
| Derivative | | 41 | - |
| financial | | | |
| instruments | | | |
+-----------------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------------+----------+----------+----------+
| Total | | 19,211 | 19,483 |
| financial | | | |
| liabilities | | | |
+-----------------------------------------------------------+----------+----------+----------+
| | | | |
+-----------------------------------------------------------+----------+----------+----------+
(2) Financial liabilities exclude tax and social security, deferred income and
other non-current payables.
(c) Credit risk
The Group's principal financial assets are cash and cash equivalents and trade
and other receivables, which represent the Group's maximum exposure to credit
risk in relation to financial assets.
The Group's credit risk is primarily attributable to its trade and other
receivables. The amounts presented in the consolidated balance sheet are net of
allowances for doubtful receivables, estimated by the Group's management based
on prior experience and their assessment of the current economic environment.
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Group. The Group has
adopted a policy of only dealing with creditworthy counterparties as a means of
mitigating the risk of financial loss from defaults.
The carrying amount of financial assets recorded in the financial statements,
which is net of impairment losses, represents the Group's maximum exposure to
credit risk.
The Group's exposure and the credit ratings of its counterparties are
continuously monitored and the aggregate value of transactions concluded is
spread amongst approved financial institutions.
Trade receivables
Trade receivables consist of a large number of customers, spread across diverse
geographical areas and the Group's exposure to credit risk is influenced mainly
by the individual characteristics of each customer. The demographics of the
Group's customer base, including default risk of the industry and country in
which the customers operate, has less of an influence on credit risk.
The Group does not have any significant credit risk exposure to any single
counterparty or any Group of counterparties having similar characteristics. The
Group defines counterparties as having similar characteristics if they are
related entities.
The Group establishes an allowance for impairment that represents its estimate
of incurred losses in respect of trade and other receivables and investments
when there is objective evidence that the asset is impaired. The main components
of this allowance are a specific loss component that relates to individually
significant exposures, and a collective loss component established for Groups of
similar assets in respect of losses that have been incurred but not yet
identified. The collective loss allowance is determined by references to past
default experience and historical data of payment statistics for similar
financial assets.
Before accepting any new customer, the Group runs credit checks to assess the
potential customer's credit quality. The Company monitors exposure to individual
clients and all customers are subject to standard terms of payment for each
division.
The Directors consider that the carrying amount of trade and other receivables,
which are non-interest bearing, approximates to their fair value.
Ageing of trade receivables:
+-------------------------------------+------------+------------+------------+------------+
| | | |
+-------------------------------------+-------------------------+-------------------------+
| | Gross | Impairment | Gross | Impairment |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------------+------------+------------+------------+------------+
| Not | 7,660 | - | 7,697 | - |
| past | | | | |
| due | | | | |
+-------------------------------------+------------+------------+------------+------------+
| Past | 2,450 | - | 2,907 | - |
| due | | | | |
| nil | | | | |
| - 30 | | | | |
| days | | | | |
+-------------------------------------+------------+------------+------------+------------+
| Past | 1,783 | - | 2,471 | - |
| due | | | | |
| 30 - | | | | |
| 60 | | | | |
| days | | | | |
+-------------------------------------+------------+------------+------------+------------+
| Past | 301 | - | 277 | - |
| due | | | | |
| 60 - | | | | |
| 90 | | | | |
| days | | | | |
+-------------------------------------+------------+------------+------------+------------+
| Past | 1,641 | 619 | 1,411 | 641 |
| due | | | | |
| 90 - | | | | |
| 120 | | | | |
| days | | | | |
+-------------------------------------+------------+------------+------------+------------+
| Past | 176 | 89 | 154 | 46 |
| due | | | | |
| greater | | | | |
| than | | | | |
| 120 | | | | |
| days | | | | |
+-------------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------------+------------+------------+------------+------------+
| | 14,011 | 708 | 14,917 | 687 |
+-------------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------------+------------+------------+------------+------------+
Trade receivables that are less than three months past due for payment are
generally not considered impaired. Included in the Group's trade receivables are
debtors with a carrying amount of GBP5,642,000 (2007: GBP6,533,000) which are
past due at the reporting date for which the Group has not made provision as
there has not been a significant change in the credit quality and the amounts
are considered recoverable. The Group does not hold any collateral over these
balances.
Movement in the provision for impairment:
+-------------------------------------------+----------+----------+----------+----------+
| | | | GBP'000 | GBP'000 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Balance at | | | 687 | 636 |
| beginning of | | | | |
| the year | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Acquired | | | - | 55 |
| with | | | | |
| subsidiary | | | | |
| undertakings | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Increase in | | | 31 | (4) |
| impairment | | | | |
| provision | | | | |
| recognised | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| Receivables | | | (10) | - |
| written off | | | | |
| as | | | | |
| uncollectible | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
| | | | 708 | 687 |
+-------------------------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------------------------+----------+----------+----------+----------+
The creation and release of provisions for impaired receivables has been
included in 'administrative expenses' in the income statement.
In determining the recoverability of a trade receivable, the Group considers any
change in the credit quality of the trade receivable from the date credit was
initially granted up to the reporting date. The concentration of credit risk is
limited due to the customer base being large and unrelated. Accordingly, the
directors believe that there is no further credit provision required in excess
of the above amount.
(d) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial
obligations as they fall due. Responsibility for liquidity risk management rests
with the Board of Directors. The Group manages liquidity risk by maintaining
adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring bank covenant compliance, forecast and actual cash flows
and matching the maturity profiles of financial assets and liabilities. Included
in Note 20 is a listing of additional undrawn facilities that the Group has at
its disposal to further reduce liquidity risk.
The Group obtained a waiver for the period under review from its lenders in
respect of the testing of the financial covenants contained within its borrowing
agreements as at 30 September 2008. However, as a consequence of the economic
climate a breach of the Group's covenants is likely, when tested for the
relevant quarters for the year ended 30 September 2009. . In addition, as part
of the negotiations the Group is intending to raise additional finance of GBP3m
by way of an equity placing and reduce the Group's level of gearing. Full
details of the impact of this uncertainty on the financial statements are
disclosed in Note 2.
Liquidity and interest risk tables
The following tables detail the Group's remaining contractual maturity for its
financial assets and liabilities.
The below tables have been drawn up based on the earliest date on which the
Group can settle the debt. The table includes both interest and principal cash
flows.
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| 30 | Carrying | Contractual | Less | 1-2 | 2-5 | More |
| September | amount | cash flows | than | years | years | than |
| 2008 | GBP'000 | GBP'000 | 1 year | GBP'000 | GBP'000 | 5 years |
| | | | GBP'000 | | | GBP'000 |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Financial | | | | | | |
| assets | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Trade | 13,304 | 13,304 | 13,304 | - | - | - |
| and | | | | | | |
| other | | | | | | |
| receivables | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Cash | 17 | 17 | 17 | - | - | - |
| and | | | | | | |
| cash | | | | | | |
| equivalents | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | 13,321 | 13,321 | 13,321 | - | - | - |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Financial | | | | | | |
| liabilities | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Trade | 4,442 | 4,442 | 4,442 | - | - | - |
| payables | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Obligations | 542 | 542 | 424 | 118 | - | - |
| under | | | | | | |
| finance | | | | | | |
| leases | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Other | 13,869 | 13,869 | 2,819 | 2,000 | 6,000 | 3,050 |
| borrowings | | | | | | |
| and | | | | | | |
| overdrafts | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Deferred | 317 | 317 | 317 | - | - | - |
| consideration | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Derivative | 41 | 41 | 41 | - | - | - |
| financial | | | | | | |
| liabilities | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | 19,211 | 19,211 | 8,043 | 2,118 | 6,000 | 3,050 |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| 30 | Carrying | Contractual | Less | 1-2 | 2-5 | More |
| September | amount | cash flows | than | years | years | than 5 |
| 2007 | GBP'000 | GBP'000 | 1 year | GBP'000 | GBP'000 | years |
| | | | GBP'000 | | | GBP'000 |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Financial | | | | | | |
| assets | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Trade | 14,230 | 14,230 | 14,230 | - | - | - |
| and | | | | | | |
| other | | | | | | |
| receivables | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Cash | 1,418 | 1,418 | 1,418 | - | - | - |
| and | | | | | | |
| cash | | | | | | |
| equivalents | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Derivative | 86 | 86 | 86 | - | - | - |
| financial | | | | | | |
| assets | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | 15,734 | 15,734 | 15,734 | - | - | - |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Financial | | | | | | |
| liabilities | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Trade | 3,822 | 3,822 | 3,822 | - | - | - |
| payables | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Obligations | 1,012 | 1,012 | 483 | 417 | 112 | - |
| under | | | | | | |
| finance | | | | | | |
| leases | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Other | 9,000 | 9,000 | 2,150 | 1,900 | 4,950 | - |
| borrowings | | | | | | |
| and | | | | | | |
| overdrafts | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| Deferred | 5,649 | 5,649 | 3,000 | 2,649 | - | - |
| consideration | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | 19,483 | 19,483 | 9,455 | 4,966 | 5,062 | - |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
| | | | | | | |
+-------------------------------------------+----------+-------------+---------+---------+---------+---------+
(e) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument or cash
flows associated with the instrument, will fluctuate due to changes in market
interest rates. As the Group has no significant interest-bearing assets, the
Group's income and operating cash flows are substantially independent of changes
in market interest rates.
The Group is exposed to interest rate risk primarily though borrowing funds at
floating interest rates. Borrowings issued at variable rates expose the Group to
cash flow interest rate risk. The Group manages interest rate risk on borrowings
by ensuring access to diverse funding and through monitoring interest rate
movements with weekly reports.
Interest rate risk is reviewed on a regular basis and if considered necessary a
strategy to minimise any potential risk through interest rate swaps will be
discussed and implemented.
Based on the various scenarios, the Group manages its cash flow interest rate
risk by using floating-to-fixed interest rate swaps. Such interest rate swaps
have the economic effect of converting borrowings from floating rates to fixed
rates. Generally the Group raises long term borrowings at floating rates and
swaps them into fixed rates that are lower than those available if the Group
borrowed at fixed rates directly. Under the interest rate swaps, the Group
agrees with other parties to exchange, at specified intervals (primarily
quarterly), the difference between fixed contract rates and floating rate
instrument amounts calculated by reference to the agreed notional amounts.
The Group's exposures to interest rates on financial assets and financial
liabilities are detailed below.
Interest rate sensitivity analysis
If interest rates had been 100 basis points higher or lower and all other
variables were held constant, the Group's profit for the year would increase or
decrease by GBP107,000 (2007: GBP55,000) in respect to exposure to the Group's
borrowings. For floating rate liabilities the analysis is prepared assuming the
amount of the liability at the balance sheet date was outstanding for the whole
period.
(f) Fair value of financial instruments
The fair value of interest rate swaps is calculated at the present value of the
estimated future cash flows.
The Directors consider that the carrying amounts of financial assets and
financial liabilities recorded at amortised cost in the financial statements
approximate to their fair values due to the short maturity of the instruments or
because they bear interest at rates approximate to the market.
22. Trade and other payables
+------------------------------------------+----------+----------+----------+----------+
| | | | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+----------+
| Non-current | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Other | | | 1,001 | 1,001 |
| payables | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | 1,001 | 1,001 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
In 2006, the Group recorded a provision of GBP1.0m in respect of a contingent
liability arising on the acquisition of Silverdell (UK) Limited. The company has
a corresponding asset relating to the indemnities from the vendors of Silverdell
(UK) Limited in respect of this provision.
+------------------------------------------+----------+----------+----------+----------+
| | | | GBP'000 | GBP'000 |
+------------------------------------------+----------+----------+----------+----------+
| Current | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Trade | | | 4,442 | 3,822 |
| payables | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Other | | | 1,822 | 2,208 |
| taxation and | | | | |
| social | | | | |
| security | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Other | | | 2,875 | 2,374 |
| payables and | | | | |
| accruals | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Amounts due | | | - | 1,825 |
| in respect | | | | |
| of | | | | |
| acquisitions | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | 9,139 | 10,229 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
An analysis of the maturity of debt is given in Note 21(d).
The Directors consider that the carrying amount of trade payables approximates
to their fair value.
The Group's policy is to fix payment terms when agreeing the terms of each
transaction. It is the Group's general policy to pay suppliers according to the
agreed terms and conditions, provided that the supplier has complied with those
terms.
Trade creditors and accruals principally comprise amounts outstanding for trade
purchases and ongoing cost and they include retention amounts held over defect
liability periods. The average credit period taken for trade purchases is 43
days (2007: 52 days) for the Group. The Group has financial risk management
policies in place to ensure that all payables are paid within the credit
timeframe.
There are no suppliers who represent more than 10% of the total balance of trade
creditors in either 2008 or 2007.
The Group has financial risk management policies in place to ensure that all
payables are paid within the credit timeframe. Therefore, under the normal
course of business, the Group is not charged interest on overdue payables.
2 Deferred and contingent consideration
+--------------------------------------------------------------------+---------------+
| | Deferred |
| | consideration |
| | GBP'000 |
+--------------------------------------------------------------------+---------------+
| Group | |
+--------------------------------------------------------------------+---------------+
| At 1 October 2006 | 5,206 |
+--------------------------------------------------------------------+---------------+
| Reclassification to current | (3,000) |
| liabilities | |
+--------------------------------------------------------------------+---------------+
| Unwinding of discount | 443 |
+--------------------------------------------------------------------+---------------+
| | |
+--------------------------------------------------------------------+---------------+
| At 1 October 2007 | 2,649 |
+--------------------------------------------------------------------+---------------+
| Acquisition of subsidiary undertakings | 317 |
+--------------------------------------------------------------------+---------------+
| Reduction in estimated liability | (2,482) |
+--------------------------------------------------------------------+---------------+
| Reclassification to current | (334) |
| liabilities | |
+--------------------------------------------------------------------+---------------+
| | |
+--------------------------------------------------------------------+---------------+
| At 30 September 2008 | - |
+--------------------------------------------------------------------+---------------+
| | |
+--------------------------------------------------------------------+---------------+
Under the terms of the acquisition agreements in respect of Silverdell (UK)
Limited and of Redhill Analysts Limited, there was provision for the payment of
deferred consideration. Deferred consideration also forms part of the
consideration for the acquisition of Swift Asbestos (Holdings) Limited during
2008, further details of which are given in note 30.
The acquisition in agreement of Silverdell (UK) Limited provided for a payment
of up to GBP6m in two equal tranches depending on certain performance criteria
of Silverdell (UK) Limited in the years ended 30 September 2007 and 2008.The
deferred consideration may be satisfied by the issue of loan notes and ordinary
shares in equal proportions. During the year GBP3.0m (GBP1.5m in cash and the
remainder through the allotment in additional shares) was paid as additional
consideration.
The vendors of Redhill Analysts Limited may be paid up to GBP1.5m to be
satisfied by GBP1.125m in cash and GBP375,000 in issue of ordinary shares based
on certain performance criteria in the year to 31 December 2007. Subsequent to
the year end GBP150,000 was paid as additional consideration.
The vendors of Swift Asbestos (Holdings) Limited may be paid up to GBP0.2m in
cash based on the outcome of completion accounts mechanism.
In accordance with the requirements of FRS 25 deferred consideration has been
discounted back to its present value at the date of acquisition. The discount is
treated as a finance charge as time elapses until the date the consideration is
paid.
The provision for deferred consideration of GBP334,000 included in current
liabilities at 30 September 2008 represents amounts payable for the acquisitions
of Redhill Analysts Limited and Swift Asbestos (Holdings) Limited, since paid.
24. Share capital
+-------------------------------------------+----+--------+----+----+----+-------------+-----------+
| | | |
+------------------------------------------------+-----------------------+-------------------------+
| | Group | Group | Group | Group |
| | No. | GBP'000 | No. | GBP'000 |
+------------------------------------------------+-------------+---------+-------------+-----------+
| Authorised: | | | | |
+------------------------------------------------+-------------+---------+-------------+-----------+
| Ordinary | 100,000,000 | 10,000 | 100,000,000 | 10,000 |
| shares of | | | | |
| 10p each | | | | |
| (2007 - 10p | | | | |
| each) | | | | |
+------------------------------------------------+-------------+---------+-------------+-----------+
| | | | | |
+------------------------------------------------+-------------+---------+-------------+-----------+
| Allotted, | | | | |
| called up | | | | |
| and fully | | | | |
| paid | | | | |
| ordinary | | | | |
| shares of | | | | |
| 10p each: | | | | |
+-------------------------------------------+-------------+---------+------------------+-----------+
| At 1 | 40,683,427 | 4,068 | 32,201,055 | 3,220 |
| October | | | | |
+-------------------------------------------+-------------+---------+------------------+-----------+
| Share | - | - | 5,333,333 | 533 |
| placing | | | | |
+-------------------------------------------+-------------+---------+------------------+-----------+
| Issued | 971,290 | 97 | 3,149,039 | 315 |
| to | | | | |
| vendors | | | | |
| as | | | | |
| partial | | | | |
| consideration | | | | |
| in respect of | | | | |
| acquisitions | | | | |
+-------------------------------------------+-------------+---------+------------------+-----------+
| | | | | |
+-------------------------------------------+-------------+---------+------------------+-----------+
| At 30 | 41,654,717 | 4,165 | 40,683,427 | 4,068 |
| September | | | | |
+-------------------------------------------+-------------+---------+------------------+-----------+
| | | | | |
+-------------------------------------------+----+--------+----+----+----+-------------+-----------+
25. Reconciliation of movement in equity
+------------------------------+----------------+---------+---------+---------+---------+---------+----------+----------+
| | Share | Share | Other | Equity | Hedging | Retained | Total |
| | capital | premium | reserve | reserve | reserve | earnings | GBP'000 |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| At | 3,220 | 13,649 | 4,081 | 33 | - | (52) | 20,931 |
| 1 | | | | | | | |
| October | | | | | | | |
| 2006 | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| | Net profit for | - | - | - | - | - | 757 | 757 |
| | year | | | | | | | |
+------------------------------+----------------+---------+---------+---------+---------+---------+----------+----------+
| | Change in fair | - | - | - | - | 86 | - | 86 |
| | value of | | | | | | | |
| | interest rate | | | | | | | |
| | swap | | | | | | | |
+------------------------------+----------------+---------+---------+---------+---------+---------+----------+----------+
| | Tax on items | - | - | - | - | (24) | - | (24) |
| | taken to | | | | | | | |
| | equity | | | | | | | |
+------------------------------+----------------+---------+---------+---------+---------+---------+----------+----------+
| Total | - | - | - | - | 62 | 757 | 819 |
| recognised | | | | | | | |
| profit for | | | | | | | |
| the period | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| Shares | 848 | - | 11,152 | - | - | - | 12,000 |
| issued | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| Share | - | - | - | 335 | - | - | 335 |
| based | | | | | | | |
| payment | | | | | | | |
| charge | | | | | | | |
| including | | | | | | | |
| tax | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| At | 4,068 | 13,649 | 15,233 | 368 | 62 | 705 | 34,085 |
| 1 | | | | | | | |
| October | | | | | | | |
| 2007 | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| | Net profit for | - | - | - | - | - | (16,573) | (16,573) |
| | year | | | | | | | |
+------------------------------+----------------+---------+---------+---------+---------+---------+----------+----------+
| | Change in fair | - | - | - | - | (127) | - | (127) |
| | value of | | | | | | | |
| | interest rate | | | | | | | |
| | swap | | | | | | | |
+------------------------------+----------------+---------+---------+---------+---------+---------+----------+----------+
| | Tax on items | - | - | - | - | 35 | - | 35 |
| | taken to | | | | | | | |
| | equity | | | | | | | |
+------------------------------+----------------+---------+---------+---------+---------+---------+----------+----------+
| | Total | - | - | - | - | (92) | (16,573) | (16,665) |
| | recognised | | | | | | | |
| | loss for the | | | | | | | |
| | year | | | | | | | |
+------------------------------+----------------+---------+---------+---------+---------+---------+----------+----------+
| Shares | 97 | - | 1,402 | - | - | - | 1,499 |
| issued | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| Share | - | - | - | 43 | - | - | 43 |
| based | | | | | | | |
| payment | | | | | | | |
| charge | | | | | | | |
| including | | | | | | | |
| tax | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| Balance as at 30 | 4,165 | 13,649 | 16,635 | 411 | (30) | (15,868) | 18,962 |
| September 2008 | | | | | | | |
+-----------------------------------------------+---------+---------+---------+---------+---------+----------+----------+
| | | | | | | | |
+------------------------------+----------------+---------+---------+---------+---------+---------+----------+----------+
Other reserves are not distributable and relate to the premium arising on:
(i) Shares issued as consideration for the acquisition of subsidiary companies;
and
(ii) Warrants issued to Marwyn Neptune Fund LP in consideration for the
participation in placing of shares on 19 July 2006.
26. Capital and other commitments
At 30 September 2008, the Group and the company had no capital commitments (2007
- nil).
Operating leases
The Group's total commitments under non-cancellable operating leases at 30
September are as follows:
+------------------------------------------+-----------+---------+-----------+---------+
| | 2008 | 2007 |
+------------------------------------------+---------------------+---------------------+
| | Land | Other | Land | Other |
| | and | GBP'000 | and | GBP'000 |
| | buildings | | buildings | |
| | GBP'000 | | GBP'000 | |
+------------------------------------------+-----------+---------+-----------+---------+
| Operating | | | | |
| leases which | | | | |
| expire: | | | | |
+------------------------------------------+-----------+---------+-----------+---------+
| Within one | 216 | 647 | 198 | 484 |
| year | | | | |
+------------------------------------------+-----------+---------+-----------+---------+
| Within two | 470 | 893 | 578 | 935 |
| to five | | | | |
| years | | | | |
+------------------------------------------+-----------+---------+-----------+---------+
| After five | 271 | - | 370 | 23 |
| years | | | | |
+------------------------------------------+-----------+---------+-----------+---------+
| | | | | |
+------------------------------------------+-----------+---------+-----------+---------+
| | 957 | 1,540 | 1,146 | 1,442 |
+------------------------------------------+-----------+---------+-----------+---------+
| | | | | |
+------------------------------------------+-----------+---------+-----------+---------+
27. Employee share schemes
The company has adopted the following share incentive arrangement plans:
Equity-settled share option scheme
The company has a share option scheme for certain employees of the Group.
Options are exercisable at a price equal to the average quoted market price of
the company's shares on the date of grant. The vesting period is three years. If
the options remain unexercised after a period of five years from the date of
grant, the options expire. Options are forfeited if the employee leaves the
Group before the options vest.
Details of the share options outstanding during the year are as follows:
+------------------------------------------+-----------+----------+-----------+----------+
| | | 2007 |
+------------------------------------------+----------------------+----------------------+
| | Number | Weighted | Number | Weighted |
| | of | average | of | average |
| | share | exercise | share | exercise |
| | options | price | options | price |
| | | GBP | | GBP |
+------------------------------------------+-----------+----------+-----------+----------+
| | | | | |
+------------------------------------------+-----------+----------+-----------+----------+
| Outstanding | 3,606,552 | 0.953 | 2,762,592 | 0.805 |
| at beginning | | | | |
| of year | | | | |
+------------------------------------------+-----------+----------+-----------+----------+
| Granted | 450,000 | 1.500 | 915,000 | 1.388 |
| during the | | | | |
| year | | | | |
+------------------------------------------+-----------+----------+-----------+----------+
| Forfeited | (446,080) | (0.893) | (71,040) | (0.805) |
| during the | | | | |
| year | | | | |
+------------------------------------------+-----------+----------+-----------+----------+
| | | | | |
+------------------------------------------+-----------+----------+-----------+----------+
| Outstanding | 3,610,472 | 1.028 | 3,606,552 | 0.953 |
| at the end | | | | |
| of the year | | | | |
+------------------------------------------+-----------+----------+-----------+----------+
| | | | | |
+------------------------------------------+-----------+----------+-----------+----------+
| Exercisable | - | - | - | - |
| at the end | | | | |
| of the year | | | | |
+------------------------------------------+-----------+----------+-----------+----------+
| | | | | |
+------------------------------------------+-----------+----------+-----------+----------+
The options outstanding at 30 September 2008 had a weighted average remaining
contractual life of 5.14 years (2007: 6.01 years). In 2008, options over 450,000
shares were granted on 3 October 2007. The aggregate of the estimated fair
values of the options granted on that date is GBP0.1m. In 2007, options were
granted on 4 January 2007, 12 June 2007 and 25 September 2007. The aggregate of
the estimated fair values of the options granted on those dates is GBP1.27m.
The inputs into the Black-Scholes Option Pricing Model are as follows:
+------------------------------------------+----------+----------+----------+----------+
| | | | GBP'000 | 2007 |
| | | | | GBP'000 |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Weighted | | | 103p | 95p |
| average | | | | |
| share price | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Weighted | | | 103p | 95p |
| average | | | | |
| exercise | | | | |
| price | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Expected | | | 21.01 | 21.04 |
| volatility | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Expected | | | 3 years | 3 years |
| life | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Risk-free | | | 5.14% | 5.22% |
| rate | | | | |
+------------------------------------------+----------+----------+----------+----------+
| Expected | | | Nil% | Nil% |
| dividend | | | | |
| yield | | | | |
+------------------------------------------+----------+----------+----------+----------+
| | | | | |
+------------------------------------------+----------+----------+----------+----------+
Expected volatility was determined by calculating the historical volatility of
the Group's share price over the previous 1.5 years. The expected life used in
the model has been adjusted, based on management's best estimate, for the
effects of non-transferability, exercise restrictions, and behavioural
considerations. The risk free rate of return is the yield on zero coupon UK
government bonds with a term similar to the expected life of the option.
28. Contingent liabilities
There are Group cross guarantees from the company for all monies due to certain
of the Group's banks and surety lenders. No monies were outstanding at 30
September 2008 (2007: GBPnil). In the normal course of business there are
contingent liabilities including the provision of bonds in respect of completed
and uncompleted contracts.
29. Related party transactions
During the year to 30 September 2008, the Group paid GBP261,000 (2007:
GBP641,000) to Marwyn Capital LLP for corporate finance services and directors'
fees and GBP60,000 (2007: GBP6,000) to Marwyn Partners Limited for office
services.
David Williams and Mark Watts are partners in Marwyn Capital LLP and Marwyn
Investment Management LLP and shareholders in Marwyn Investments Group Limited,
which owns 100% of Marwyn Partners Limited. Marwyn Neptune Fund LP is managed by
Marwyn Investment Management LLP and beneficially owns shares and warrants in
the Group.
During the year to 30 September 2008, Kalistar LLP, a partnership of certain the
executive directors of Silverdell (UK) Ltd, charged GBP39,000 (2007: GBP36,000)
for the provision of cars used by some of the directors of Silverdell (UK) Ltd.
At the end of the year, GBPnil (2007: GBPnil) remained outstanding.
One property occupied by Silverdell (UK) Limited is owned by the pension fund in
which Danny Spicer and Sean Nutley have an interest. The property is subject to
a market rent of GBP29,000 (2007: GBP18,000) paid during the year.
30. Acquisition of subsidiaries
On 1 October 2007 the Group acquired 100% of the issued share capital of Swift
Asbestos Holdings Limited ("Swift"), for a fair value consideration including
expenses of GBP1,905,000 satisfied by cash of GBP1,738,000 and deferred
consideration of GBP167,000 (subject to the outcome of a completion accounts
mechanism). The aggregate net assets acquired and their fair values, based on
the board's initial assessment of net realisable value, are detailed below.
The following table sets out the book values of the identifiable assets and
liabilities acquired and their fair value to the Group:
+-----------------------------------------+----------+--------------+---------+---------+
| | Book | Revaluations | Other | Fair |
| | value | GBP'000 | items | value |
| | GBP'000 | | GBP'000 | GBP'000 |
+-----------------------------------------+----------+--------------+---------+---------+
| Non-current | | | | |
| assets | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Tangible | 407 | 143 | - | 550 |
+-----------------------------------------+----------+--------------+---------+---------+
| Current | | | | |
| assets | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Inventories | 29 | - | - | 29 |
| and work in | | | | |
| progress | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Trade and | 212 | - | (1) | 211 |
| other | | | | |
| receivables | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Cash and | 373 | - | (1) | 372 |
| cash | | | | |
| equivalents | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Total | 1,021 | 143 | (2) | 1,162 |
| assets | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Creditors | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Obligations | (40) | - | - | (40) |
| under | | | | |
| finance | | | | |
| leases | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Trade and | (180) | - | 9 | (171) |
| other | | | | |
| payables | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Deferred | (13) | - | (17) | (30) |
| tax | | | | |
| liability | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Total | (233) | - | (8) | (241) |
| liabilities | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
| Net assets | 788 | 143 | (10) | 921 |
+-----------------------------------------+----------+--------------+---------+---------+
| | | | | |
+-----------------------------------------+----------+--------------+---------+---------+
+---------------------------------------------------+----------+----------+----------+
| | | | Total |
| | | | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Goodwill | | | 984 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Consideration | | | 1,905 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| Satisfied by: | | | |
+---------------------------------------------------+----------+----------+----------+
| Cash | | | |
+---------------------------------------------------+----------+----------+----------+
| - expended during | | | 1,738 |
| year | | | |
+---------------------------------------------------+----------+----------+----------+
| - expended after | | | 167 |
| year-end | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | 1,905 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | GBP'000 |
+---------------------------------------------------+----------+----------+----------+
| Net cash outflows in | | | |
| respect of the | | | |
| acquisition | | | |
| comprised: | | | |
+---------------------------------------------------+----------+----------+----------+
| Cash consideration | | | 1,738 |
| expended during the | | | |
| year | | | |
+---------------------------------------------------+----------+----------+----------+
| Cash at bank and in | | | (372) |
| hand acquired | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
| | | | 1,366 |
+---------------------------------------------------+----------+----------+----------+
| | | | |
+---------------------------------------------------+----------+----------+----------+
The trade, assets and liabilities of Swift were transferred to Silverdell (UK)
Limited immediately following the Company's acquisition by the Group, such that
it is not possible separately to identify the contribution to revenue and
operating loss made by Swift between the date of acquisition and the balance
sheet date. Neither is it possible to determine the impact on Group revenues and
operating loss for the period if the acquisition of Swift had been completed on
the first day of the financial year.
31. Subsequent events
Subsequent to the year end, the Group concluded its discussions with lenders for
revised facilities including the re-structuring of existing facilities,
re-profiled repayment and revised covenants (see note 2).
32. Transition to IFRS
For all periods up to and including the year to 30 September 2007 the Group has
prepared its financial statements in accordance with UK generally accepted
accounting practice (UK GAAP). For the year to 30 September 2008 the Group is
required to prepare consolidated financial statements in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European
Union.
The Group's transition date to IFRS is 1 October 2006. This has been determined
in accordance with IFRS 1 "First Time Adoption of International Financial
Reporting Standards", being the start of the earliest period of comparative
information.
To explain the change to IFRS, a reconciliation has been provided of the equity
at 1 October 2006 and 30 September 2007 and the net income for the year to 30
September 2007 from the previously published consolidated financial statements,
prepared in accordance with UK GAAP to the accompanying consolidated financial
statements prepared in accordance with IFRS. An explanation of the principal
adjustments required by the Group on conversion to IFRS is set out below.
None of the IFRS adjustments relevant to the Group relate to cash and therefore
there is no impact on cash flows. IAS 7 "Cash Flow Statements" changes the
definition of cash used in the cash flow statement to cash and cash equivalents.
The UK GAAP figures have been restated to take account of any presentational
changes required by IFRS adoption, where for instance items are required to be
shown on the face of the primary statements rather than in the notes and where
existing items are now split current/non-current or shown on different lines
(e.g. intangible asset).
Effects of transition to IFRS
IAS 36 and IAS 38: Intangible assets
IFRS 3 requires recognition of separately identifiable intangible assets. These
intangible assets are amortised over their expected useful lives. Previously
under UK GAAP, these intangibles would have been classified as goodwill and
amortised over their useful lives (typically between 10 and 20 years).
The Group has applied IAS 38 Intangible Assets to acquisitions, which has
resulted in the recognition of customer relationships and order backlog
intangible assets. These intangible assets would not have qualified for
recognition under UK GAAP. These are being amortised over one to three years.
IFRS 3: Business combinations and Goodwill
Under UK GAAP goodwill was amortised on a straight line basis over its economic
useful life of up to 20 years, tested for impairment and provided for as
necessary. Under IFRS 3 "Business Combinations", goodwill is no longer amortised
but is carried and subject to annual review for impairment. Accordingly the
goodwill amortisation charged of GBP1,391,000 in the year to 30 September 2007
has been reversed.
A full impairment review of the carrying value of goodwill is required at the
date of transition (1 October 2006) and any impairment losses treated as a
reduction in retained earnings. Goodwill impairment losses may not be reversed.
Effects of transition to IFRS on the opening balance sheet at 1 October 2006
Opening IFRS balance sheet as at 1 October 2006 - effect of IAS1 'Presentation
of Financial Statements'
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | UK | GBP'000 | | | UK | | |
| | GAAP | | | | GAAP | | |
| | balances | | | | balances | | |
| | in UK | | | | in IFRS | | |
| | GAAP | | | | format | | |
| | format | | | | GBP'000 | | |
| | GBP'000 | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Fixed | | | | | | | Non-current |
| assets | | | | | | | assets |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Intangible | 19,539 | - | | | 19,539 | | Goodwill |
| assets | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Tangible | 1,014 | - | | | 1,014 | | Property, |
| assets | | | | | | | plant and |
| | | | | | | | equipment |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | - | 1,001 | | | 1,001 | | Trade and |
| | | | | | | | other |
| | | | | | | | receivables |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Current | | | | | | | Current |
| assets | | | | | | | assets |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Stocks | 1,445 | - | | | 1,445 | | Inventory |
| and | | | | | | | and work |
| work | | | | | | | in |
| in | | | | | | | progress |
| progress | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Debtors | 7,335 | (1,001) | | | 6,335 | | Trade and |
| | | | | | | | other |
| | | | | | | | receivables |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Cash | 3,300 | - | | | 3,300 | | Cash and |
| at | | | | | | | cash |
| bank | | | | | | | equivalents |
| and in | | | | | | | |
| hand | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Creditors: | | | | | | | Current |
| amounts | | | | | | | liabilities |
| falling | | | | | | | |
| due within | | | | | | | |
| one year | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Bank | (886) | - | | | (886) | | Bank |
| overdraft | | | | | | | overdraft |
| | | | | | | | and |
| | | | | | | | borrowings |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Hire | (140) | - | | | (140) | | Obligations |
| purchase | | | | | | | under |
| and | | | | | | | finance |
| finance | | | | | | | lease |
| lease | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Corporation | (232) | - | | | ( 232) | | Current |
| tax | | | | | | | tax |
| | | | | | | | liabilities |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Other | (3,834) | - | | | (3,834) | | Trade and |
| creditors | | | | | | | other |
| | | | | | | | payables |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Creditors: | | | | | | | Non-current |
| amounts | | | | | | | liabilities |
| falling | | | | | | | |
| due after | | | | | | | |
| more than | | | | | | | |
| one year | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Hire | (336) | - | | | (336) | | Obligations |
| purchase | | | | | | | under |
| and | | | | | | | finance |
| finance | | | | | | | lease |
| lease | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | (61) | | | (61) | | Deferred |
| | | | | | | | tax |
| | | | | | | | liabilities |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | (5,206) | | | (5,206) | | Deferred |
| | | | | | | | consideration |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | (1,001) | | | (1,001) | | Trade and |
| | | | | | | | other |
| | | | | | | | payables |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Provisions | | | | | | | |
| for | | | | | | | |
| liabilities | | | | | | | |
| and charges | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Deferred | (61) | 61 | | | - | | |
| taxation | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Deferred | (5,206) | 5,206 | | | - | | |
| consideration | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Other | (1,001) | 1,001 | | | - | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Net | 20,938 | - | | | 20,938 | | Net |
| assets | | | | | | | assets |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Capital | | | | | | | Equity |
| and | | | | | | | |
| reserves | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Called | 3,220 | - | | | 3,220 | | Share |
| up | | | | | | | capital |
| share | | | | | | | |
| capital | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Share | 13,649 | - | | | 13,649 | | Share |
| premium | | | | | | | premium |
| account | | | | | | | account |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Equity | 28 | - | | | 28 | | Equity |
| reserve | | | | | | | reserve |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Other | 4,081 | - | | | 4,081 | | Other |
| reserves | | | | | | | reserves |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Profit | (40) | - | | | (40) | | Accumulated |
| and | | | | | | | loss |
| loss | | | | | | | |
| account | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| Equity | 20,938 | - | | | 20,938 | | Total |
| shareholders' | | | | | | | equity |
| funds | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-----------------------------------------------+----------+-----------+-+-+-----------+-+----------------------+
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | UK | IFRS2 | IAS38 | | IFRS3 | | IFRS |
| | GAAP | Share- | Intangible | | Business | | Balances |
| | balances | based | assets | | combinations | | GBP'000 |
| | in IFRS | payments | GBP'000 | | GBP'000 | | |
| | format | GBP'000 | | | | | |
| | GBP'000 | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Non-current | | | | | | | |
| assets | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Goodwill | 19,539 | - | (2,205) | | 191 | | 17,525 |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Intangible | - | - | 2,860 | | - | | 2,860 |
| assets | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Property, | 1,014 | - | - | | - | | 1,014 |
| plant and | | | | | | | |
| equipment | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Trade and | 1,001 | - | - | | - | | 1,001 |
| other | | | | | | | |
| receivables | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Current | | | | | | | |
| assets | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Inventory | 1,445 | - | - | | - | | 1,445 |
| and work | | | | | | | |
| in | | | | | | | |
| progress | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Trade and | 6,335 | - | - | | - | | 6,335 |
| other | | | | | | | |
| receivables | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Cash and | 3,300 | - | - | | - | | 3,300 |
| cash | | | | | | | |
| equivalents | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Total | 32,634 | - | 655 | | 191 | | 33,480 |
| assets | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Current | | | | | | | |
| liabilities | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Bank | (886) | - | - | | - | | (886) |
| overdrafts | | | | | | | |
| and | | | | | | | |
| borrowings | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Obligations | (140) | - | - | | - | | (140) |
| under | | | | | | | |
| finance | | | | | | | |
| lease | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Trade and | (3,834) | - | - | | - | | (3,834) |
| other | | | | | | | |
| payables | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Current | (232) | - | - | | - | | (232) |
| tax | | | | | | | |
| liabilities | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Non-current | | | | | | | |
| liabilities | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Obligations | (336) | - | - | | - | | (336) |
| under | | | | | | | |
| finance | | | | | | | |
| lease | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Trade and | (1,001) | - | - | | - | | (1,001) |
| other | | | | | | | |
| payables | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Deferred | (61) | 5 | (858) | | - | | (914) |
| taxation | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Deferred | (5,206) | - | - | | - | | (5,206) |
| consideration | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Total | (11,696) | 5 | (858) | | - | | (12,549) |
| liabilities | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Net assets | 20,938 | 5 | (203) | | 191 | | 20,931 |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Equity | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Share | 3,220 | - | - | | - | | 3,220 |
| capital | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Share | 13,649 | - | - | | - | | 13,649 |
| premium | | | | | | | |
| account | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Other | 4,081 | - | - | | - | | 4,081 |
| reserve | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Equity | 28 | 5 | - | | - | | 33 |
| reserve | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| (Accumulated | (40) | - | (203) | | 191 | | (52) |
| loss)/retained | | | | | | | |
| earnings | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| Total | 20,938 | 5 | (203) | | 191 | | 20,931 |
| equity | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
| | | | | | | | |
+--------------------------------------------+----------+----------+------------+-+--------------+-+----------+
Effects of transition to IFRS on the balance sheet at 30 September 2007
Balance sheet as at 30 September 2007 - reconciliation of UK GAAP to IFRS
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | UK | GBP'000 | | | UK | | |
| | GAAP | | | | GAAP | | |
| | balances | | | | balances | | |
| | in UK | | | | in IFRS | | |
| | GAAP | | | | format | | |
| | format | | | | GBP'000 | | |
| | GBP'000 | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Fixed | | | | | | | Non-current |
| assets | | | | | | | assets |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Intangible | 40,523 | - | | | 40,523 | | Goodwill |
| assets | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Tangible | 2,480 | - | | | 2,480 | | Property, |
| assets | | | | | | | plant and |
| | | | | | | | equipment |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | - | 1,001 | | | 1,001 | | Trade and |
| | | | | | | | other |
| | | | | | | | receivables |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Current | | | | | | | Current |
| assets | | | | | | | assets |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Stocks | 1,278 | - | | | 1,278 | | Inventory |
| and | | | | | | | and work |
| work | | | | | | | in |
| in | | | | | | | progress |
| progress | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Debtors | 17,135 | (1,001) | | | 16,134 | | Trade and |
| | | | | | | | other |
| | | | | | | | receivables |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Cash | 1,418 | - | | | 1,418 | | Cash and |
| at | | | | | | | cash |
| bank | | | | | | | equivalents |
| and in | | | | | | | |
| hand | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Creditors: | | | | | | | Current |
| amounts | | | | | | | liabilities |
| falling | | | | | | | |
| due within | | | | | | | |
| one year | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Bank | (2,150) | - | | | (2,150) | | Bank |
| loans | | | | | | | overdraft |
| | | | | | | | and |
| | | | | | | | borrowings |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Hire | (483) | - | | | (483) | | Obligations |
| purchase | | | | | | | under |
| and | | | | | | | finance |
| finance | | | | | | | lease |
| lease | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Corporation | (1,932) | - | | | (1,932) | | Current |
| tax | | | | | | | tax |
| | | | | | | | liabilities |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Deferred | (3,000) | - | | | (3,000) | | Deferred |
| consideration | | | | | | | consideration |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Other | (10,229) | - | | | (10,229) | | Trade and |
| creditors | | | | | | | other |
| | | | | | | | payables |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Creditors: | | | | | | | Non-current |
| amounts | | | | | | | liabilities |
| falling | | | | | | | |
| due after | | | | | | | |
| more than | | | | | | | |
| one year | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Bank | (6,850) | - | | | (6,850) | | Bank |
| loans | | | | | | | overdraft |
| | | | | | | | and |
| | | | | | | | borrowings |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Hire | (529) | - | | | (529) | | Obligations |
| purchase | | | | | | | under |
| and | | | | | | | finance |
| finance | | | | | | | lease |
| lease | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | (30) | | | ( 30) | | Deferred |
| | | | | | | | tax |
| | | | | | | | liabilities |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | (2,649) | | | (2,649) | | Deferred |
| | | | | | | | consideration |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | (1,001) | | | (1,001) | | Trade and |
| | | | | | | | other |
| | | | | | | | payables |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Provisions | | | | | | | |
| for | | | | | | | |
| liabilities | | | | | | | |
| and charges | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Deferred | (30) | 30 | | | - | | |
| taxation | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Deferred | (2,649) | 2,649 | | | - | | |
| consideration | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Other | (1,001) | 1,001 | | | - | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Net | 33,981 | - | | | 33,981 | | Net |
| assets | | | | | | | assets |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Capital | | | | | | | Equity |
| and | | | | | | | |
| reserves | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Called | 4,068 | - | | | 4,068 | | Share |
| up | | | | | | | capital |
| share | | | | | | | |
| capital | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Share | 13,649 | - | | | 13,649 | | Share |
| premium | | | | | | | premium |
| account | | | | | | | account |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Equity | 199 | - | | | 199 | | Equity |
| reserve | | | | | | | reserve |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Other | 15,233 | - | | | 15,233 | | Other |
| reserves | | | | | | | reserves |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Profit | 832 | - | | | 832 | | Retained |
| and | | | | | | | earnings |
| loss | | | | | | | |
| account | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| Equity | 33,981 | - | | | 33,981 | | Total |
| shareholders' | | | | | | | equity |
| funds | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
| | | | | | | | |
+-------------------------------------------+----------+---------+-+-+-----------+-+----------------------+
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | UK | IFRS2 | IAS39 | IAS38 | IFRS3 | IFRS |
| | GAAP | Share- | Derivatives | Intangible | Business | Balances |
| | balances | based | GBP'000 | assets | combinations | GBP'000 |
| | in IFRS | payments | | GBP'000 | GBP'000 | |
| | format | GBP'000 | | | | |
| | GBP'000 | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Non-current | | | | | | |
| assets | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Goodwill | 40,523 | - | - | (4,978) | 1,582 | 37,127 |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Intangible | - | - | - | 4,494 | - | 4,494 |
| assets | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Property, | 2,480 | - | - | - | - | 2,480 |
| plant and | | | | | | |
| equipment | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Trade | 1,001 | - | - | - | - | 1,001 |
| and | | | | | | |
| other | | | | | | |
| receivables | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Current | | | | | | |
| assets | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Inventory | 1,278 | - | - | - | - | 1,278 |
| and work | | | | | | |
| in | | | | | | |
| progress | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Trade | 16,134 | - | - | - | - | 16,134 |
| and | | | | | | |
| other | | | | | | |
| receivables | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Other | - | - | 86 | - | - | 86 |
| financial | | | | | | |
| assets | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Cash | 1,418 | - | - | - | - | 1,418 |
| and | | | | | | |
| cash | | | | | | |
| equivalents | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Total | 62,834 | - | 86 | (484) | 1,582 | 64,018 |
| assets | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Current | | | | | | |
| liabilities | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Bank | (2,150) | - | - | - | - | (2,150) |
| overdrafts | | | | | | |
| and | | | | | | |
| borrowings | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Obligations | (483) | - | - | - | - | (483) |
| under | | | | | | |
| finance | | | | | | |
| lease | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Trade | (10,229) | - | - | - | - | (10,229) |
| and | | | | | | |
| other | | | | | | |
| payables | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Current | (1,932) | - | - | - | - | (1,932) |
| tax | | | | | | |
| liabilities | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Deferred | (3,000) | - | - | - | - | (3,000) |
| consideration | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Non-current | | | | | | |
| liabilities | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Bank | (6,850) | - | - | - | - | (6,850) |
| overdrafts | | | | | | |
| and | | | | | | |
| borrowings | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Obligations | (529) | - | - | - | - | (529) |
| under | | | | | | |
| finance | | | | | | |
| lease | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Trade | (1,001) | - | - | - | - | (1,001) |
| and | | | | | | |
| other | | | | | | |
| payables | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Deferred | (30) | 169 | (24) | (1,225) | - | (1,110) |
| tax | | | | | | |
| liabilities | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Deferred | (2,649) | - | - | - | - | (2,649) |
| consideration | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Total | (28,853) | 169 | (24) | (1,225) | - | (29,933) |
| liabilities | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Net | 33,981 | 169 | 62 | (1,709) | 1,582 | 34,085 |
| assets | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Equity | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Share | 4,068 | - | - | - | - | 4,068 |
| capital | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Share | 13,649 | - | - | - | - | 13,649 |
| premium | | | | | | |
| account | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Equity | 199 | 169 | - | - | - | 368 |
| reserve | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Other | 15,233 | - | - | - | - | 15,233 |
| reserves | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Hedging | - | - | 62 | - | - | 62 |
| reserve | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Retained | 832 | - | - | (1,709) | 1,582 | 705 |
| earnings | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| Total | 33,981 | 169 | 62 | (1,709) | 1,582 | 34,085 |
| equity | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
| | | | | | | |
+-------------------------------------------+----------+----------+-------------+------------+--------------+----------+
+------------------------------------------------+----------+------------+--------------+----------+
| | UK | IAS38 | IFRS3 | IFRS |
| | GAAP | Intangible | Business | Balances |
| | balances | assets | combinations | GBP'000 |
| | in IFRS | GBP'000 | GBP'000 | |
| | format | | | |
| | GBP'000 | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| Continuing | | | | |
| operations: | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| Revenue | 38,498 | - | - | 38,498 |
+------------------------------------------------+----------+------------+--------------+----------+
| Cost of sales | (24,808) | - | - | (24,808) |
+------------------------------------------------+----------+------------+--------------+----------+
| | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| Gross profit | 13,690 | - | - | 13,690 |
+------------------------------------------------+----------+------------+--------------+----------+
| | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| Administrative | (10,750) | (2,130) | 1,391 | (11,489) |
| expenses | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| Operating profit | 2,940 | (2,130) | 1,391 | 2,201 |
+------------------------------------------------+----------+------------+--------------+----------+
| Interest | 72 | - | - | 72 |
| receivable | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| Finance costs | (846) | - | - | (846) |
+------------------------------------------------+----------+------------+--------------+----------+
| | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| Profit before tax | 2,166 | (2,130) | 1,391 | 1,427 |
+------------------------------------------------+----------+------------+--------------+----------+
| Income tax expense | (1,294) | 624 | - | (670) |
+------------------------------------------------+----------+------------+--------------+----------+
| | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| Profit for the | 872 | (1,506) | 1,391 | 757 |
| period from | | | | |
| continuing | | | | |
| operations | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| Profit for the | 872 | (1,506) | 1,391 | 757 |
| period | | | | |
| attributable to | | | | |
| equity | | | | |
| shareholders of | | | | |
| the Parent | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
| | | | | |
+------------------------------------------------+----------+------------+--------------+----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR JBMTTMMIJBIL
Silverdell (LSE:SID)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Silverdell (LSE:SID)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
