RNS Number : 5402C
AFH Financial Group Plc
29 June 2016
29 June 2016
AFH Financial Group PLC ("AFH" or the "Company")
Results for the six months ended 30 April 2016
AFH reports further strong growth
AFH, the rapidly growing wealth management and financial advisory business, is pleased to announce its
results for the six months ended 30 April 2016.
Strong growth
· Revenues up 42% to £11.7 million (H1 2015: £8.22
million)
· Gross margin maintained at 55% (H1 2015: 55%)
· Recurring revenue as a percentage of total revenue
maintained at 66% (H1 2015: 66%)
· EBITDA up 43% to £1.43 million (H1 2015: £1.0
million)
· Profit before tax up 42% to £0.86 million (H1 2015: £0.6
million)
· Earnings per share up 35% to 2.9 pence (H1 2015: 2.15
pence)
· Funds under Management of £1.88 billion, up 44% (30 April
2015: £1.3 billion)
Proven integration platform
· Over 90% of deferred consideration for those acquisitions
reaching a deferred consideration milestone was earned and paid during the period
Confident Outlook
· Strong balance sheet to support further
acquisitions
· Cash reserves of £7.1 million (30 April 2015: £4.3
million)
· Regulatory dynamics support further industry
consolidation
· Disciplined acquisition methodology
· Strong pipeline of acquisition opportunities
Alan Hudson, Group Chief Executive, commented:
"Our strong first half results demonstrate AFH's continued successful momentum. Strong organic growth,
complemented by contributions from our acquisitions, drove increased earnings per share by almost a third, compared with the same
period last year. Within this, the rise in both recurring fees and revenue per adviser was particularly encouraging as we
continue to realise and develop the benefits of a strongly integrated business model under the AFH brand.
Based on the continued client demand for our financial planning led wealth management services, the opportunities
following UK pension reform and our proven track record as a successful acquirer and integrator of businesses, we are confident
of the Group's future prospects for the full year and beyond."
Enquiries:
|
|
AFH Financial Group PLC
Alan Hudson, Chief Executive Officer
Paul Wright, Chief Financial Officer
|
01527 577775
|
Liberum (Nominated Adviser and Broker)
John Fishley / Tom Fyson
|
020 3100 2000
|
Camarco
Geoffrey Pelham-Lane / Jennifer Renwick
|
0203 757 4985
|
Chief Executive's Review
Trading results
I am pleased to provide shareholders with an update on the Company's performance for the six months to
30 April 2016.
The business has seen significant growth over the period, with revenue for the period increasing to
£11.7m (H1 2015: £8.22m), driven by ongoing recurring fees which increased by 44% and which represented 66% of total revenue
during the period (H1 2015: 66%).
Within the total revenue of £11.7m, £1.9m (representing 16%) was generated by portfolios acquired in the
financial year ended 31 October 2015.
Whilst adviser numbers remained constant during the period, annualised revenue per adviser increased to
£156,000 (H1 2015 £120,000).
Gross margins remained strong at 55% (H1 2015: 55%) and the Group reported EBITDA of £1.4m, an increase of 27% over
the same period last year (£1.1m).
EBITDA increased by 43% to £1.43m representing a margin on Revenue of 12.2% (H1 2015: 12.2%).
The Group reported an increase of 42% in profit before tax to £0.86m, whilst earnings per share increased to 2.9p
per share (2015: 2.15p).
In a period of stock market turbulence, our clients' portfolios demonstrated a strong resilience to market
volatility and, as a consequence, the Company's management fees, which are based on the value of our Funds under Management
("FUM"), were similarly cushioned. Recurring revenue on which the Company earns these fees is estimated to rise or fall by
approximately 4% for every 10% movement in the FTSE 100 index. The negative impact on current period revenues compared to H1 2015
was approximately £30,000.
Since April 2015 the Company has continued to invest in its head office to support the current and future projected
growth. Whilst the increased cost was incurred in the second half of 2015 alongside the acquisitions made last year, on a like
for like basis administrative expenditure increased by 40% to £5.38m whilst remaining at a similar level to H2 in 2015. This
increase included a rise of £123,000 (37%) in amortization and depreciation costs of noncurrent assets acquired. Further
investment is anticipated as the Group continues its growth strategy.
During the period £125m (gross) of new funds were invested through AFH from existing and new
clients.
Cash position
The Group remains free of bank or, with the exception of a small property mortgage, secured debt and maintains
healthy cash balances. At the period-end, cash and cash equivalents totalled £7.1m. Unsecured non-convertible bonds of £0.75m and
£2.14m mature in 2020 and 2018 respectively.
Business review
In December 2015 the Company raised £6.1m (net) from institutional and existing investors to fund the acquisition of complementary IFA companies and the working capital requirements of the enlarged organisation.
The Company is currently undertaking formal due diligence on certain potential acquisitions which are expected to conclude and be
announced to the market during the second half of the year.
The last twelve months have seen a number of large M&A transactions in the wealth management sector
completed at multiples well in excess of historic valuations, as wealth managers seek greater distribution and economies of
scale. Whilst AFH has developed a strong pipeline of targets it remains the policy of the Board
only to acquire businesses that: i) will be value enhancing for shareholders; ii) reflect the culture of the Company; and iii)
can be integrated seamlessly into the AFH business. Whilst the number of acquisitions in the current year is
unlikely to match the 11 transactions in 2015 this selective policy is believed by the board to be in the long term interest of
all shareholders.
The successful integration and subsequent performance of our acquisitions remains a key driver for the
Company and we continue to invest in our integration processes. I am pleased to report that our continued focus on
post-acquisition integration and the development of those financial advisers joining the Company through acquisitions has
resulted in over 90% of deferred consideration for those acquisitions reaching a deferred consideration milestone being earned
and paid during the period. This is a result of the targets set out in purchase agreements being substantially met and
demonstrates that clients are not only being retained, but the businesses acquired are continuing to grow as part of
AFH.
As previously noted, the Company has built a strong pipeline of acquisition targets throughout the UK. The
Board recognises the strength of AFH in its traditional West Midlands heartland and is seeking to continue to build on this
position whilst expanding into areas where both advisers and clients can be effectively supported. Acquisitions made in
Scotland and the South of England in 2015 have been successfully integrated into the business and the pipeline reflects our
desire to develop these areas in the future. Whilst AFH has a strategy of continuing to increase the average size of our
acquisitions, the Company also remains committed to providing an exit for retiring IFAs where our existing advisers can offer the
full AFH service to the acquired client base. As a result the Board expects to announce both strategic and tactical acquisitions
in the future.
Outlook
The Group remains profitable and cash generative with a strong balance sheet. Our strategy remains to expand
nationally in our traditional areas of strength, through both organic and acquisitive growth to drive increased profitability.
The Directors continue to actively seek appropriately priced acquisition opportunities with a comparable culture to AFH to
generate value for shareholders.
Our aim is to grow our client base through increasing our adviser numbers and greater productivity afforded by the
enlarged AFH structure and centralised support functions. The progress made during the first half of the current financial year,
combined with the growth dynamics of our market, allow the Directors to view the prospects for the full year and beyond with
confidence.
Alan Hudson
Chief Executive
29 June 2016
Consolidated Statement of Comprehensive Income
|
|
Unaudited
Six months ending 30 April
|
Unaudited
Six months ending 30 April
|
Audited
Twelve months ending 31 October
|
|
|
2016
|
2015
|
2015
|
|
Note
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
Revenue
|
3
|
11,700
|
8,222
|
20,977
|
Cost of sales
|
|
(5,316)
|
(3,730)
|
(10,009)
|
|
|
───────
|
───────
|
───────
|
Gross profit
|
|
6,384
|
4,492
|
10,968
|
|
|
|
|
|
Administrative expenses
|
|
(5,415)
|
(3,827)
|
(9,213)
|
|
|
───────
|
───────
|
───────
|
Operating profit
|
|
969
|
665
|
1,755
|
|
|
|
|
|
Amortisation and Depreciation
|
|
459
|
336
|
872
|
EBITDA
|
|
1,428
|
1,001
|
2,627
|
|
|
|
|
|
Finance income
|
|
15
|
15
|
26
|
Finance costs
|
|
(125)
|
(73)
|
(187)
|
|
|
───────
|
───────
|
───────
|
Profit before tax
|
|
859
|
607
|
1,594
|
|
|
|
|
|
Income tax expense
|
|
(200)
|
(189)
|
(421)
|
|
|
───────
|
───────
|
───────
|
Profit for the year attributable to owners of the parent
|
|
659
|
418
|
1,173
|
|
|
|
|
|
Other comprehensive income
|
|
-
|
-
|
-
|
|
|
───────
|
───────
|
───────
|
Total comprehensive income for the year attributable to owners of the parent
|
|
659
|
418
|
1,173
|
|
|
═══════
|
═══════
|
═══════
|
|
|
|
|
|
Earnings per share (in pence)
|
7
|
|
|
|
Basic
|
|
2.90
|
2.15
|
5.95
|
Diluted
|
|
2.68
|
2.00
|
5.49
|
|
|
═══════
|
═══════
|
═══════
|
Adjusted earnings per share (in pence)
|
7
|
|
|
|
Basic
|
|
4.84
|
3.85
|
10.26
|
Diluted
|
|
4.46
|
3.59
|
9.48
|
|
|
═══════
|
═══════
|
═══════
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Financial Position
|
|
|
|
|
|
|
|
Unaudited
30 April
|
Unaudited
30 April
|
Audited
31 October
|
|
|
2016
|
2015
|
2015
|
|
Note
|
£'000
|
£'000
|
£'000
|
Assets
|
|
|
|
|
Non-current assets
|
|
|
|
|
Intangible assets
|
4
|
20,530
|
18,967
|
20,902
|
Property, plant and equipment
|
|
1,098
|
250
|
960
|
Investments
|
|
1
|
1
|
1
|
|
|
───────
|
───────
|
───────
|
|
|
21,629
|
19,218
|
21,863
|
|
|
|
|
|
Current assets
|
|
|
|
|
Trade and other receivables
|
|
4,546
|
2,411
|
4,406
|
Current tax assets
|
|
-
|
-
|
-
|
Cash and cash equivalents
|
|
7,106
|
4,326
|
3,766
|
|
|
───────
|
───────
|
───────
|
|
|
11,652
|
6,737
|
8,172
|
|
|
───────
|
───────
|
───────
|
Total assets
|
|
33,281
|
25,955
|
30,035
|
|
|
═══════
|
═══════
|
═══════
|
Liabilities
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
6
|
7,911
|
7,841
|
8,289
|
Current tax liabilities
|
|
299
|
39
|
339
|
Financial liabilities - Borrowings
|
5
|
63
|
-
|
63
|
|
|
───────
|
───────
|
───────
|
|
|
8,273
|
7,880
|
8,691
|
|
|
|
|
|
Net current assets / (liabilities)
|
|
3,379
|
(1,143)
|
(519)
|
|
|
───────
|
───────
|
───────
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Trade and other payables
|
6
|
2,530
|
3,865
|
5,238
|
Financial liabilities - Borrowings
|
5
|
3,398
|
2,894
|
3,432
|
Deferred tax liability
|
|
-
|
42
|
45
|
|
|
───────
|
───────
|
───────
|
|
|
5,928
|
6,801
|
8,715
|
|
|
|
|
|
Total liabilities
|
|
14,201
|
14,681
|
17,406
|
|
|
───────
|
───────
|
───────
|
Net assets
|
|
19,080
|
11,274
|
12,629
|
|
|
═══════
|
═══════
|
═══════
|
Shareholders' equity
|
|
|
|
|
Share capital
|
|
2,409
|
1,950
|
2,012
|
Share premium account
|
|
13,976
|
7,337
|
8,112
|
Merger reserve
|
|
(540)
|
(540)
|
(540)
|
Share-based payment reserve
|
|
456
|
329
|
384
|
Retained earnings
|
|
2,779
|
2,198
|
2,661
|
|
|
───────
|
───────
|
───────
|
Total Shareholders' equity
|
|
19,080
|
11,274
|
12,629
|
|
|
═══════
|
═══════
|
═══════
|
|
|
|
|
|
|
|
Share
capital
|
Share premium
|
Merger reserve
|
Share-based payment reserve
|
Retained earnings
|
Total
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
Audited balance at 31 October 2014
|
1,932
|
7,097
|
(540)
|
269
|
1,780
|
10,538
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Profit for the period
|
-
|
-
|
-
|
60
|
418
|
478
|
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Total comprehensive income
|
-
|
-
|
-
|
60
|
418
|
478
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
|
|
|
|
|
|
|
Issue of share capital
|
18
|
240
|
-
|
-
|
-
|
258
|
Dividend
|
-
|
-
|
-
|
-
|
-
|
-
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Unaudited balance at 30 April 2015
|
1,950
|
7,337
|
(540)
|
329
|
2,198
|
11,274
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Profit for the period
|
|
|
|
55
|
755
|
810
|
Other comprehensive income
|
|
|
|
|
|
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Total comprehensive income
|
|
|
|
55
|
755
|
810
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
|
|
|
|
|
|
|
Issue of share capital
|
62
|
775
|
|
|
|
837
|
Dividend
|
|
|
|
|
(292)
|
(292)
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Audited balance at 31 October 2015
|
2,012
|
8,112
|
(540)
|
384
|
2,661
|
12,629
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Profit for the period
|
-
|
-
|
-
|
72
|
659
|
731
|
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Total comprehensive income
|
-
|
-
|
-
|
72
|
659
|
731
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
|
|
|
|
|
|
|
Issue of share capital
|
397
|
5,864
|
-
|
-
|
-
|
6,261
|
Dividend
|
-
|
-
|
-
|
-
|
(541)
|
(541)
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Unaudited balance at 30 April 2016
|
2,409
|
13,976
|
(540)
|
456
|
2,779
|
19,080
|
|
──────
|
──────
|
──────
|
──────
|
──────
|
──────
|
Consolidated Statement of Cash Flows
|
|
|
Unaudited
Six months ending 30 April
|
Unaudited
Six months ending 30 April
|
Audited
Twelve months ending 31 October
|
|
|
2016
|
2015
|
2015
|
|
Note
|
£'000
|
£'000
|
£'000
|
Cash flows from operating activities
|
|
|
|
|
Cash generated from operations
|
8
|
916
|
993
|
2,231
|
|
|
|
|
|
Tax paid
|
|
(240)
|
(286)
|
(219)
|
|
|
───────
|
───────
|
───────
|
Net cash inflow from operating activities
|
|
676
|
707
|
2,012
|
|
|
───────
|
───────
|
───────
|
Cash flows from investing activities
|
|
|
|
|
Purchase of property, plant and equipment
|
|
(225)
|
(18)
|
(789)
|
|
|
|
|
|
Purchase of other intangible assets, net of cash
|
|
(2,611)
|
(4,388)
|
(6,532)
|
Proceeds from disposals of other intangible assets
|
|
-
|
34
|
34
|
Rental Income received
|
|
-
|
4
|
8
|
|
|
|
|
|
Interest received
|
|
15
|
11
|
18
|
|
|
───────
|
───────
|
───────
|
Net cash (outflow) from investing activities
|
|
(2,821)
|
(4,357)
|
(7,261)
|
|
|
───────
|
───────
|
───────
|
Cash flows from financing activities
|
|
|
|
|
Proceeds from issue of shares
|
|
6,405
|
211
|
1,072
|
Share issue costs
|
|
(223)
|
-
|
(24)
|
Issue of unsecured bond
|
|
-
|
2,142
|
2,142
|
Proceeds from borrowings
|
|
-
|
-
|
601
|
Repayment of borrowings
|
|
(34)
|
-
|
-
|
Interest paid
|
|
(122)
|
(30)
|
(137)
|
Dividends
|
|
(541)
|
-
|
(292)
|
|
|
───────
|
───────
|
───────
|
Net cash inflow/(outflow) from financing activities
|
|
5,485
|
2,323
|
3,362
|
|
|
───────
|
───────
|
───────
|
|
|
|
|
|
Net increase / (decrease) in cash and cash equivalents
|
|
3,340
|
(1,327)
|
(1,887)
|
Cash and cash equivalents at the beginning of the period
|
|
3,766
|
5,653
|
5,653
|
|
|
───────
|
───────
|
───────
|
Cash and cash equivalents at the end of the period
|
|
7,106
|
4,326
|
3,766
|
|
|
═══════
|
═══════
|
═══════
|
|
|
|
|
|
|
Notes to the Consolidated Financial Statements
1 General Information
AFH Financial Group Plc is a company incorporated in England and Wales. The Group is principally engaged in the
provision of independent financial advice to the retail market.
2 Basis of preparation and accounting policies
2.1 Basis of preparation
The interim condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim
Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures
required in the annual financial statements and should be read in conjunction with the Group's financial statements for the year
ended 31 October 2015, which were prepared in accordance with International Financial Reporting Standards adopted by the
International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting
Interpretations Committee ("IFRIC") of the IASB (together "IFRS") as adopted by the European Union, and in accordance with the
requirements of the Companies Act applicable to companies reporting under IFRS.
The information relating to the six months ended 30 April 2016 and the six months ended 30 April 2015 is unaudited
and does not constitute statutory financial statements within the meaning of section 434 of the Companies Act 2006. The Group's
statutory financial statements for the year ended 31 October 2015 have been reported on by its auditor and delivered to the
Registrar of Companies. The report of the auditor was unqualified and did not draw attention to any matters by way of emphasis,
or contain a statement under section 498(2) or (3) of the Companies Act 2006.
2.2 Significant accounting policies
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are
consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 October
2015.
2.3 Basis of consolidation
The interim condensed consolidated financial statements consolidate the financial statements of the Company and its
subsidiary undertakings as at 30 April each year.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains
control, and continue to be consolidated until the date that such control ceases. The financial statements of subsidiaries are
prepared for the same reporting period as the parent company, using consistent accounting policies.
2.4 Key sources of judgements and estimation uncertainty
The preparation of the condensed consolidated financial statements requires management to make estimates and
assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent
liabilities. If in the future such estimates and assumptions, which are based on management's best judgement at the date of
preparation of the financial statements, deviate from actual circumstances, the original estimates and assumptions will be
modified as appropriate in the period in which the circumstances change. The areas where a higher degree of judgement or
complexity arises, or where assumptions and estimates are significant to the consolidated financial statements, are discussed
below.
Impairment of client portfolios
The Group reviews whether acquired client portfolios are impaired at least on an annual basis. This comprises an
estimation of the fair value less cost to sell and the value in use of the acquired client portfolios. In assessing value in use,
the estimated future cash flows expected to arise from the individual client portfolios are discounted to their present value
over a finite period to calculate the fair value.
The key assumptions used in arriving at a fair value less cost of sale are those around valuations based on
multiples of future earnings streams and values based on assets under management. These have been determined by looking at
valuations of similar businesses and the consideration paid in comparable transactions.
The carrying amount of client portfolios at 30 April 2016 was £18.3m (2015: £16.9m). No impairments have been
made during the period (2015: £2.5m).
Impairment of goodwill
The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the
value in use of the cash-generating units to which the goodwill has been allocated. In assessing value in use, the estimated
future cash flows expected to arise from the cash-generating unit are discounted to their present value using the Group's
weighted average cost of capital adjusted for tax.
The carrying amount of goodwill at 30 April 2016 was £2.1m (2015: £2.1m). No impairments have been made during the
period (2015: £ nil).
3 Segmental Analysis
The Board of Directors is considered to be the chief operating decision maker of the Group.
The Board has determined that there is one operating segment based on reports reviewed by the Board that are used
to make strategic decisions.
The total revenue of the group for the year has been derived from its principal activity wholly undertaken in the
United Kingdom.
4 Intangible Assets
|
|
|
|
|
Goodwill
|
Acquired client portfolios
|
Total
|
|
£'000
|
£'000
|
£'000
|
Cost
|
|
|
|
At 31 October 2014
|
2,465
|
8,102
|
10,567
|
Additions
|
-
|
9,583
|
9,583
|
Disposals
|
-
|
-
|
-
|
Revaluations
|
-
|
-
|
-
|
|
|
|
|
At 30 April 2015
|
2,465
|
17,685
|
20,150
|
Additions
|
-
|
2,376
|
2,376
|
Disposals
|
-
|
-
|
-
|
Revaluations
|
-
|
-
|
-
|
|
|
|
|
At 31 October 2015
|
2,465
|
20,061
|
22,526
|
Additions
|
-
|
-
|
-
|
Disposals
|
-
|
-
|
-
|
Revaluations
|
-
|
-
|
-
|
|
|
|
|
At 30 April 2015
|
2,465
|
20,061
|
22,526
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation
|
|
|
|
At 31 October 2014
|
375
|
485
|
860
|
Charge for the period
|
-
|
288
|
288
|
|
|
|
|
At 30 April 2015
|
375
|
773
|
1,148
|
Charge for the period
|
-
|
476
|
476
|
|
|
|
|
At 31 October 2015
|
375
|
1,249
|
1,624
|
Charge for the period
|
-
|
372
|
372
|
|
|
|
|
At 30 April 2016
|
375
|
1,621
|
1,996
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value
|
|
|
|
|
|
|
|
At 30 April 2016
|
2,090
|
18,440
|
20,530
|
|
|
|
|
At 31 October 2015
|
2,090
|
18,812
|
20,902
|
|
|
|
|
At 30 April 2015
|
2,090
|
16,878
|
18,968
|
|
|
|
|
At 31 October 2014
|
2,090
|
7,617
|
9,707
|
|
|
|
|
5 Analysis of borrowings
|
|
|
|
|
|
Unaudited
Six months ending 30 April
|
Unaudited
Six months ending 30 April
|
Audited
Twelve months ending 31 October
|
|
|
2016
|
2015
|
2015
|
|
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current borrowings
|
|
|
|
|
Mortgage on freehold property
|
|
63
|
-
|
63
|
|
|
───────
|
───────
|
───────
|
|
|
63
|
-
|
63
|
|
|
═══════
|
═══════
|
═══════
|
Non-current borrowings
|
|
|
|
|
8% Unsecured bonds
|
|
752
|
752
|
752
|
7.5% Unsecured bonds
|
|
2,142
|
2,142
|
2,142
|
Mortgage on freehold property
|
|
504
|
-
|
538
|
|
|
───────
|
───────
|
───────
|
|
|
3,398
|
3,432
|
3,432
|
|
|
═══════
|
═══════
|
═══════
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial liabilities are recognised at amortised cost. There is no material difference
between the fair value and the carrying value.
The 8% unsecured bond is due in 2020. The 7.5% Unsecured bond, issued in December 2014 is due in
December 2018.
The mortgage taken out in the year is repayable by instalments over an 8 year period with an
interest rate of 2.9% over LIBOR.
6. Trade and other payables
|
|
Unaudited
Six months ending 30 April
|
Unaudited
Six months ending 30 April
|
Audited
Twelve months ending 31 October
|
|
|
2016
|
2015
|
2015
|
|
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
Trade payables
|
|
509
|
451
|
850
|
Contingent consideration
|
|
3,891
|
5,283
|
4,321
|
Commissions payable
|
|
3,018
|
1,727
|
2,488
|
Other payables
|
|
317
|
224
|
584
|
Accruals
|
|
176
|
156
|
46
|
|
|
───────
|
───────
|
───────
|
|
|
7,911
|
7,841
|
8,289
|
|
|
═══════
|
═══════
|
═══════
|
Non-current
|
|
|
|
|
Contingent consideration
|
|
2,530
|
3,865
|
5,238
|
|
|
═══════
|
═══════
|
═══════
|
|
|
|
|
|
|
|
|
7 Earnings per share
The calculation of earnings per share is based on the profit attributable to the equity holders for
the period of £659,000 (2015 - £418,000) and weighted average number of shares in issue during the period of 22,726,615 (2015 -
19,397,462).
The diluted earnings per share has been adjusted for the potential share issue relating to the
share-based payments. The number of shares has been increased by the difference between the amount of shares that will be issued
if all options are exercised and the number of shares that could be purchased for the same consideration at average market
price.
Adjusted earnings per share of £1,101,000 (2015 - £746,000) have been calculated on the profit
attributable to the equity holders for the period after adding back Amortisation and Depreciation and adjusting the tax provision
accordingly.
8 Reconciliation of Operating profit to Net Cash inflow from Operating Activities
|
|
Unaudited
Six months ending 30 April
|
Unaudited
Six months ending 30 April
|
Audited
Twelve months ending 31 October
|
|
|
2016
|
2015
|
2015
|
|
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
Profit before tax for the period
|
|
859
|
607
|
1,594
|
|
|
|
|
|
Adjustments for
|
|
|
|
|
|
|
|
|
|
Interest and other investment income
|
|
(15)
|
(15)
|
(26)
|
Interest expense
|
|
125
|
73
|
187
|
Depreciation, amortisation and impairment
|
|
459
|
336
|
872
|
Equity settled share based expense
|
|
72
|
60
|
116
|
|
|
|
|
|
Movements in working capital
|
|
|
|
|
Decrease / (Increase) in trade and other receivables
|
|
(140)
|
63
|
(1,932)
|
(Decrease) / Increase in trade and other payables
|
|
(444)
|
(131)
|
1,420
|
|
|
───────
|
───────
|
───────
|
Cash generated from operations
|
|
916
|
993
|
2,231
|
|
|
═══════
|
═══════
|
═══════
|
|
|
|
|
|
|
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEFFIAFMSEFM