TIDMAUK
RNS Number : 3618B
Aukett Swanke Group PLC
30 January 2020
Aukett Swanke Group Plc
Announcement of final audited results
for the year ended 30 September 2019
Announcement of final audited results for the year ended 30
September 2019
Aukett Swanke Group plc ("the Group"), the international group
of architects, interior designers and engineers announces its final
audited results for the year ended 30 September 2019.
Financial highlights
-- Major financial turnaround
-- Profit before tax restored at GBP292,000 (2018: Loss GBP2.54m)
-- Introduction of new segmental reporting
-- All three geographic hubs in profit before central cost allocation
-- Revenue up 7.7% to GBP15.49m (2018: GBP14.38m)
-- Net funds grew to GBP820,000 (2018: GBP157,000)
-- Profit after tax rose to GBP332,000 (2018: loss GBP2.37m)
-- EPS returned to positive at 0.21p (2018: loss 1.42p)
Operational highlights
-- BCO award for Best Commercial Workplace
-- Veretec projects' win: Best School project (King's College
Music School), Best Hotel conversion (Langley Park Hotel & Spa)
at AHEAD Europe awards, AJ100 Retrofit Award ('The Green House'
E2)
-- Flagship store 'Alaia' in New Bond Street for Richemont
shortlisted 2019FX Interior Design Awards
-- Return to continuing instructions in the UK office market
-- Successful sale of Moscow operations - post year end
Commenting on the results CEO Nicholas Thompson said
"These results are a testament to the positive attitude of all
our staff as we have emerged from a difficult trading environment;
the Board is grateful to all concerned for their resilience.
The strong second half performance augurs well for the next
financial year, particularly so, given the recent resolution of
electoral and Brexit related uncertainty. With a leaner and more
stream-lined group now in place, after last year's focus on costs
and the disposal of the loss-making Moscow operation, we look
forward to improving fortunes for the Group in 2020."
Enquiries
Aukett Swanke - 020 7843 3000
Nicholas Thompson Chief Executive Officer
Antony Barkwith Group Finance Director
finnCap - 020 7220 0500
Corporate Finance Julian Blunt/Giles Rolls
Corporate Broking Alice Lane/Tim Harper
Investor Media Enquiries - 07979 604687
Chris Steele
Extract from the Chairman's Statement
I am delighted to report to you in my first year as
Non-Executive Chairman, particularly as I believe the results set
out in this report mark a turning point in our recent fortunes.
For the benefit of shareholders not familiar with me I am by
training and inclination an architect, having spent 40 years in the
profession of which 36 were with our Company. I also hold 5.6% of
the Company's equity.
I am therefore focused not only in maintaining the high quality
of the services that we provide to our clients but also, to have
that quality reflected in the Company's share price; something I do
not believe is the case today.
As you will see as you read through the Report, our management
team led by Nicholas Thompson, has performed strongly in difficult
market conditions to restore the Group to profitability. I am
confident of further positive progress under his leadership.
In addition to a turnaround in profitability from a loss of
GBP2.54m in 2018 to a profit of GBP0.29m this year, we have also
improved our cash management, ending the year with a healthy
balance of GBP0.82m in net funds. While it is too soon to restore
dividend payments, this remains a high priority for the Board.
Since the last Annual Report there have been several Board
changes in addition to mine. The first was the retirement of my
predecessor, Anthony Simmonds and, I would like to take this
opportunity to pay tribute to his many years of service.
Secondly, I wish to welcome our new Group Finance Director
Antony Barkwith to the Board. Tony has been with the Company for 15
months now and I am pleased to report that he has made a strong
start. Finally, I also welcome Clive Carver, who joined the Board
in May 2019, as a Non-Executive Director. The prime focus of the
new Board is to work to make sure the Company's many positive
attributes are reflected in its valuation.
While our fortunes will always be subject to market conditions,
I look forward to the remainder of 2020 and beyond with renewed
confidence.
Raúl Curiel
Chairman
29 January 2020
Extracts from strategic and directors' reports
Strategy
We are a professional services group that principally provides
architectural design services along with specialisms in master
planning, interior design, executive architecture and associated
engineering services.
Our strategic objective is to provide a range of high quality
design orientated solutions to our clients that allow us to create
shareholder value over the longer term. At the same time we aim to
provide an enjoyable and rewarding working environment for our
staff. The cyclical nature of the markets in which we operate gives
rise to peaks and troughs in our financial performance. Management
is cognisant that our business model needs to reflect this variable
factor in both its decision-making and expectation of future
performance.
In both 2017 and 2018, the markets in which we operate were
subject to some significant challenges, including: the onset of
Brexit and the uncertainty created around decision-making; a number
of competition losses; a one-off property cost due to our UK office
move and; finally significant bad debt provisions in our Middle
East operation the effect of which resulted in losses in both
years. Consequentially our strategy in the short term has been to
mitigate the impact of such challenges and not to pursue any new
acquisitions which, in part, had contributed to some of the losses
previously sustained.
The strategy in the next period is to consolidate the
improvements that we have made to our operations and optimise our
current platform with consideration being given to the value added
by each entity.
Business Model
We operate through a three hub geographical structure covering:
the United Kingdom with our head office in London; the Middle East
(United Arab Emirates) with offices in Dubai, Abu Dhabi, Al Ain and
Ras Al Khaimah; and Continental Europe with four offices in Berlin,
Frankfurt, Istanbul and Prague. Our former operation in Moscow was
sold after the year end.
We are primarily focused in the mixed-use commercial property
markets including offices, hotels, retail shops and malls,
specialist industrial and larger residential schemes. Our Clients,
therefore, are: Institutional Investors such as large insurance
companies and finance houses; private development companies who are
the upper tier in the markets in which we operate and; construction
companies who require our services during the site phases of
project delivery.
The United Kingdom hub comprises three principal service offers:
comprehensive architectural design including master planning; along
with interior design and fit-out capability and; an executive
architectural delivery service operating under the 'Veretec'
brand.
Our Middle East business comprises a number of registered
companies which are now marketed under a common brand 'Aukett
Swanke'. The service offers within the region include architectural
and interior design, post contract delivery services including
architect of record and engineering design and site services.
Increasingly these separate activities are being combined as a
single multidisciplinary service as demanded by this market and we
are now well placed to offer such a 'one-stop shop' service.
Additionally, we can tailor our services to different pricing
points as a result of our varied staff profile, offering services
from high design through to site inspection.
The Continental European operations are all separately managed
by local directors (with main board oversight), operating through
wholly owned subsidiaries, associates, joint ventures and, a
Licensee structure. The services offered are consistent with the
other two hubs. Entities within this hub provide additional drawing
services to the larger operations in order to optimise both local
and group resources.
All operations cover new buildings, refurbishments and
historical properties for conversion or repurposing.
As a Group we now have a total average full time equivalent
("FTE") staff contingent of 305 (2018: 330). We are ranked by
professional staff in the 2020 World Architecture 100 at number 64
(2018: 67).
In order to provide greater transparency of our underlying
trading performance the new segmental analysis separates out
Central Costs from operating subsidiary results to show underlying
trading pre management charges and, to highlight the full cost of
running the Group. Under the previous disclosure Central Costs were
weighted towards wholly owned operations, with smaller management
charges borne by joint ventures and associates and on whom the
Group relied for their contribution in the form of dividend income
to cover their associated central cost.
The Board believes that this revised approach to segmental
reporting provides shareholders with greater understanding of the
relative performances of the geographies that make up the Group and
removes inconsistencies in overhead reporting and recovery from
each operation.
Therefore all profits figures referred to under Group activities
reflect operating profit before management charges, except where
noted and not, profit before or after tax.
Group Activities and performance
Performance in the period shows revenue growing by 7.7% to
GBP15.49m (2018: GBP14.38m) and revenue before sub consultants
rising by GBP613k to GBP13.71m (2018: GBP13.09m). However, costs
fell significantly and we achieved a profit of GBP292k following
the loss in 2018 of GBP2.54m. The segmental analysis shows that
each geographic hub either reversed a loss or increased a profit
with Central Costs falling in the same period. A financial success
all round.
Cost reductions were achieved across expenditure lines. A
reduction in our headcount saved GBP600k during the year and our
property costs fell by nearly GBP500k much of which was due to
one-off property relocation costs in the UK in 2018. Finally, we
saw a large reduction in other operating expenses following a
GBP440k reduction in bad debt provisions plus GBP80k of favourable
exchange rate gains primarily due to the movement of the GBP:AED
exchange rate on intercompany loan balances denominated in AED.
Post tax profit has benefited from a GBP218k tax credit arising
from an R&D tax claim for the two previous years (2016/17 and
2017/18) in the United Kingdom; with the resulting cash being
received after the year end. Whilst future tax credits have yet to
be established we believe that similar tax credits should be
available in the future.
As such our EPS has returned 0.21 pence per share compared to a
loss in 2018 of 1.42.
As mentioned earlier, cash improved dramatically by the year end
and stood at GBP1.15m (2018: GBP710k) which, with the reduction in
the long term acquisition loan of a further GBP228k, resulted in
net funds standing at an impressive improvement of GBP820k (2018:
GBP157k). A large portion of this improvement came from our more
systematic collection regime in the Middle East and from general
cost savings around the Group.
Total revenues under management were GBP31.50m (which includes
100% of our joint ventures and associate's revenue) (2018:
GBP31.95m). Of the 305 FTE staff (2018: 330) some 115 FTE staff
(2018: 126) are employed by our joint ventures and associate so the
income and costs attributable to them are not reflected in the
consolidated revenue or expense lines.
United Kingdom
For the first time in three years revenues rose and ended the
year 10.5% higher at GBP7.45m (2018: GBP6.74m). This reflects a
fairly difficult opening six months but then a gradual improvement
as we progressed through the year; with our client portfolio
beginning to become more active again. Interestingly, many
developers started to shrug off the uncertainty of Brexit and
returned to the speculative development market as underlying demand
once again outstripped supply, especially in Grade A office space.
This trend augurs well for the current year and, of course,
represents a good commercial decision with the benefit of hindsight
given the UK election result in December 2019. This point is
exemplified by the first of our projects to be cancelled (on Friday
17 June 2016) which has now been fully re-instructed as a GBP50m
regional office HQ with planning submitted in early December,
before the UK election.
This revenue improvement has been mirrored at the bottom line
with the hub's contribution to Group profit reversing a 2018 loss
of GBP965k to a profit of GBP451k - a GBP1.42m turnaround in one
year. This turnaround figure comprises not only an increase in
revenue of GBP710k but also cost reductions of GBP706k and reflects
our expectation, as reported in the 2018 results, that the lower
operating base would only require a small amount of revenue
improvement to achieve a profit.
Given the back drop of a decline in revenue in 2018 the projects
in 2019 reflected a recovery through much increased levels of new
enquiries and an accelerated activity on continuing instructions.
Continuing instructions included projects such as Statesman House
in Maidenhead for Royal London, a mixed use masterplan; 111
Victoria Street in Bristol for CEG, a 250,000 sq ft speculative
office; a number of projects at Cambridge Science Park for Trinity
College and a hotel for Village Hotels; Steamhouse at Eastside
Locks in Birmingham for Goodman, a faculty building for Birmingham
City University, that combines undergraduates, post graduates,
entrepreneur start-ups and SME businesses.
Newer commissions included the refurbishment of Asticus building
in London's Mayfair for AXA; strategic building studies for Astrea
around Berkeley Square in London; Orchard Wharf in East London, a
Hybrid architect role for Regal London, a large number of Hybrid
feasibilities including studies for Royal London, Travis Perkins,
Freshwater, CBRE Global Investment, and others - "beds on sheds" by
another name, all around the London boroughs. Interiors enjoyed a
number of wins across the capital, including a major West End
occupier commercial fit-out shortly after the year end.
Elsewhere our Veretec service offer to other architects and
contractors continued to grow with commissions from Multiplex,
Skanska, Sir Robert MacAlpine, and the delivery of designs by Stiff
& Trevellion, Buckley Grey Yeoman, DSDHA and EDS Avantgarde. In
addition we were commissioned by Land Securities, Derwent, and
Native Land.
In a more stable market environment, with electoral related
uncertainty now resolved, and the Brexit process progressing, we
expect the UK market to enter a new development cycle from which
we'd expect to benefit.
Middle East
Revenue rose in the Middle East by GBP700k (10%) from GBP6.82m
to GBP7.52m in the period, and costs fell by GBP410k resulting in
an operating profit of GBP525k (2018: loss GBP585k). The cost
reductions came from all expenditure lines reflecting a concerted
effort to streamline the operations, remove duplicate overhead
costs and proactively manage the debtor book. This has all been
very successful.
The three operations (Aukett Swanke, John R Harris and Shankland
Cox) all had a good order book positions at the outset of the year
but they were all impacted by project delays of one sort or another
throughout the year. Only when the very large new Samanea Mall in
Dubai was finally given the green light was the operation able to
start to recover the losses that it incurred in the first half as
this project's services of architecture and engineering were spread
across all operations.
Major contributors to revenue this year were varied in their
type, geographical spread and scale, reflecting the expertise and
diverse nature of our Middle Eastern business.
Retail sector commissions included the design and delivery of
the 110,000 sq m new build Samanea Market concept for home
furnishings in Dubai for the Chinese conglomerate Lesso and, the
delivery of a 75,000 sq m Sports Society Mall in Dubai which will
be the largest sports mall in the world on completion for Leader.
We are continuing the refurbishment of the Al Ain Mall and the
extension of another major Shopping Mall in Ras Al Khaimah. Our
specialist Hotel skills were further utilised on the refurbishment
of the Mercure hotel Dubai - the largest of its brand in the Middle
East; continuing work on the 1,555 guestrooms, signature suites and
Imperial Club Lounge at Atlantis, The Palm; as well as completing a
major refurbishment of the Kempinski Hotel 'Mall of the Emirates'
Dubai for Majid Al Futtaim.
Under Client Frameworks were included a number data, technical
and retail projects for Du telecom & Etisalat.
The Group has held a long association with cultural and heritage
projects in the UAE, such as the World Trade Centre Dubai, and has
continued with involvement in the preservation of Sheikh Mohamed
Bin Khalifa House and Al Ain Museum in Al Ain and, in Abu Dhabi
with the Sir Bani Yas Island Pavilion gateway to the unique
nature-based destination alive with wildlife and adventure
activities. We have undertaken detailed design, Architect of Record
and delivery Services on Shindagha Perfume House a recent addition
to the 25 hectare Shindagha Historic District beside Dubai Creek,
originally the historic centre of Dubai where the ruling Sheikhs
& famous traders lived. Aldar also commissioned the concept
designs for several buildings in Abu Dhabi on a site flanked by the
Zayed National Museum, Guggenheim and the Louvre. We have been
active in varied aspects of design, delivery, Architect of Record
and technical evaluation for several pavilions including the UK,
USA, KSA and Australia as well as other support facilities for the
Expo Dubai 2020.
Lastly and, perhaps the most novel and exciting, was a
commission by Miral to design and deliver a new 'Viewing Walkway
and Zipwire ride' that will traverse the Ferrari World site on Yas
Island Abu Dhabi at over 25m aboveground and pass thrillingly
through the roller coaster - this project will be completed by
Spring 2020.
With the Middle East market experiencing a tightening of the
purse strings we can foresee 2020 being more competitive than 2019,
albeit many consultants have shifted their emphasis to Saudi Arabia
where there are a number of mega projects. This shift of resources
should dilute the price competition that might otherwise ensue.
The outlook for this region remains cautious but we are
budgeting an increase in our revenue in the year ahead. Cost
management will remain a key focus.
Continental Europe
This operation comprises one wholly owned subsidiary, two joint
ventures and an associate plus a former wholly owned subsidiary in
Russia which was wholly owned throughout the year, and post year
end operates under a licensee arrangement following its disposal to
a local shareholder. Revenue and costs for the partly-owned
entities are not included in revenue or costs in the Consolidated
Income Statement; in line with the use of the equity method of
accounting only the after-tax result is included in Group income
statement.
Revenue for the hub (i.e. the Russian and Turkish wholly owned
subsidiaries only), declined again, this time by 37% to GBP516k
(2018: GBP817k). However, the region benefits from total revenues
under management of GBP16.529m (2018: GBP18.387m) and the hub has
built on this greater sum by increasing profitability and making an
increased contribution to the Group in the year of GBP495k (2018:
profit GBP284k). Whilst staff numbers reduced from 132 to 116 the
net revenue per FTE technical staff increased by 14.5% to GBP87k
(2018: GBP76k).
Project completions this year by the Berlin office included the
refurbishment and conversion of the Kaufhaus Jandorf in
Berlin-Mitte to offices for Mercedes-Benz R&D, the Zoom
mixed-use building next to Berlin-Zoo, the Allianz HQ in
Berlin-Adlershof and the WinX office tower in Frankfurt, where we
were the Executive Architect on all four projects. Other
completions include a Premier Inn Hotel in Hamburg and in August
2019 the Campus in a listed heritage electrical sub-station
building in Berlin-Kreuzberg sponsored by Google.
In Frankfurt the first phases of the refurbishment of the iconic
Messeturm building were completed including some tenant fit-outs,
along with a banking sector data centre and the Living Lyon
residential building. Other completions include a major insurance
group fit-out in Cologne and a rollout of branch offices for
Commerzbank in Korbach.
In Prague significant projects are under way including the
refurbishment of the Trikaya OC Repy shopping centre, the first
phases of the WPP Bubenska HQ and a logistics building extension
for DB Schenker which will continue into 2020. New projects are in
early design stages for a shopping centre and major office fit-out
in Prague, a logistics centre in Ostrava and data centre projects
in Romania.
In Turkey a large number of fit-out completions occurred in
Istanbul this year for Sanofi, Credit Suisse, Nike, 3M, KPMG and
for VM Ware's HQ Project in Sofia, Bulgaria where further expansion
phases continue into 2020. Work also started on an architectural
project for a large private house in Istanbul.
The Moscow office completed a 20,000 sq m luxury Kosygina
residential development, interiors projects for a luxury apartment
in Moscow, a Training Centre for Sibur in Tobolsk and a residential
complex masterplan for a 40 ha site near Tyumen for Embaevo. The
Moscow operation was co-located and transferred into new ownership
in October to a Russian National who also owns the Aurora Group, a
significant and renowned 100 person strong project management,
architecture and engineering practice.
Group Expenditure
The Group continued to carefully manage the operational costs of
the Plc Company during the current year and, as a result, saved
around GBP100k year on year. GBP80k of this saving came from an
advantageous foreign exchange gain, due to the movement of the
GBP:AED exchange rate on intercompany loan balances denominated in
AED.
Shareholder base
For a small cap company our shareholder register is large with
around 2,200 individual shareholders, many with extremely small
holdings. This results in disproportionate costs whenever we need
to convene shareholder meetings.
Around 50% (1,100) of the shareholder register, by number, hold,
in aggregate, under 2% (c.3m shares) of the total equity which, at
the current market price of 1.95 pence per share has a value of c.
GBP65,000, an average value of just GBP59 each.
For some time the Board has been considering a capital
reorganisation to make the register more manageable and to rebase
the share price at new level. At an appropriate moment the Board
will put proposals to shareholders to implement such action.
Summary, Group Prospects and Shareholder Value
The action we have taken over the past two years to reduce costs
and focus on known income streams in each operation has borne fruit
in this set of results. This has especially been the case in the
Middle East and the UK. As a result 2019 was a far better year than
2018. Looking forward we can see greater stability in all of our
operations, despite the vagaries of both the political and economic
environment in which we operate. We hope to build on our current
recovery and expect to grow our profit level in 2020.
Nicholas Thompson Antony Barkwith
Chief Executive Officer Group Finance Director
29 January 2020
Consolidated income statement
For the year ended 30 September 2019
As Restated
Note 2019 2018
GBP'000 GBP'000
------------------------------------------ ------- ---------- ------------
Revenue 2 15,492 14,380
Sub consultant costs (1,781) (1,286)
------------------------------------------ ------- ---------- ------------
Revenue less sub consultant costs 2 13,711 13,094
Personnel related costs (11,294) (11,915)
Property related costs (1,542) (2,029)
Other operating expenses (1,294) (2,062)
Other operating income 371 287
Operating loss (48) (2,625)
Finance costs (42) (40)
------------------------------------------ ------- ---------- ------------
Loss after finance costs (90) (2,655)
Share of results of associate
and joint ventures 382 121
------------------------------------------ ------- ---------- ------------
Profit/(loss) before tax 292 (2,544)
Tax credit 40 171
------------------------------------------ ------- ---------- ------------
Profit/(loss) for the year 2 332 (2,373)
------------------------------------------ ------- ---------- ------------
Profit/(loss) attributable to:
Owners of Aukett Swanke Group
Plc 346 (2,345)
Non-controlling interests (14) (28)
------------------------------------------ ------- ---------- ------------
332 (2,373)
------------------------------------------ ------- ---------- ------------
Basic and diluted earnings per
share for loss attributable to
the ordinary equity holders of
the Company:
From continuing operations 0.21p (1.42)p
Total profit/(loss) per share 3 0.21p (1.42)p
------------------------------------------ ------- ---------- ------------
Consolidated statement of comprehensive income
For the year ended 30 September 2019
2019 2018
GBP'000 GBP'000
------------------------------------------ --------- ---------
Profit/(loss) for the year 332 (2,373)
Currency translation differences 46 (31)
Other comprehensive profit/(loss)
for the year 46 (31)
Total comprehensive profit/(loss)
for the year 378 (2,404)
------------------------------------------- --------- ---------
Total comprehensive profit/(loss)
for the year is attributable to:
Owners of Aukett Swanke Group
Plc 392 (2,370)
Non-controlling interests (14) (34)
378 (2,404)
------------------------------------------ --------- ---------
Consolidated statement of financial position
At 30 September 2019
As Restated
Note 2019 2018
GBP'000 GBP'000
-------------------------------------- -------- ---------- ------------
Non current assets
Goodwill 2,412 2,372
Other intangible assets 762 810
Property, plant and equipment 590 434
Investment in associate 711 545
Investments in joint ventures 277 248
Deferred tax 193 377
------------------------------------------------ ---------- ------------
Total non current assets 4,945 4,786
Current assets
Trade and other receivables 4,904 4,554
Contract assets (2018: IAS 18
accrued income) 663 1,220
Cash at bank and in hand 1,145 710
------------------------------------------------ ---------- ------------
Total current assets 6,712 6,484
Total assets 11,657 11,270
Current liabilities
Trade and other payables (4,528) (4,392)
Contract liabilities (2018: IAS
18 deferred income) (836) (886)
Current tax - (1)
Borrowings (331) (308)
Total current liabilities (5,695) (5,587)
Non current liabilities
Borrowings (272) (559)
Deferred tax (53) (61)
Provisions (1,123) (927)
------------------------------------------------ ---------- ------------
Total non current liabilities (1,448) (1,547)
Total liabilities (7,143) (7,134)
Net assets 4,514 4,136
------------------------------------------------ ---------- ------------
Capital and reserves
Share capital 1,652 1,652
Merger reserve 1,176 1,176
Foreign currency translation reserve 22 (24)
Retained earnings 37 (309)
Other distributable reserve 1,494 1,494
------------------------------------------------ ---------- ------------
Total equity attributable to
equity holders of the Company 4,381 3,989
------------------------------------------------ ---------- ------------
Non-controlling interests 133 147
------------------------------------------------ ---------- ------------
Total equity 4,514 4,136
------------------------------------------------ ---------- ------------
Consolidated statement of cash flows
For the year ended 30 September 2018
As restated
Note 2019 2018
GBP'000 GBP'000
----------------------------------------- ------- ---------- ------------
Cash flows from operating activities
Cash generated from operations 4 647 10
Interest paid (42) (40)
Income taxes paid (1) -
----------------------------------------- ------- ---------- ------------
Net cash inflow / (outflow) from
operating activities 604 (30)
Cash flows from investing activities
Purchase of property, plant and
equipment (90) (79)
Sale of property, plant and equipment 2 26
Dividends received 186 99
----------------------------------------- ------- ---------- ------------
Net cash received in investing
activities 98 46
Net cash inflow before financing
activities 702 16
Cash flows from financing activities
Payments of lease liabilities (36) (17)
Repayment of bank loans (250) (236)
Net cash outflow from financing
activities (286) (253)
Net change in cash and cash equivalents 416 (237)
Cash and cash equivalents at start
of year 710 960
Currency translation differences 19 (13)
Cash and cash equivalents at end
of year 1,145 710
----------------------------------------- ------- ---------- ------------
Cash and cash equivalents are comprised
of:
Cash at bank and in hand 1,145 710
Cash and cash equivalents at end
of year 1,145 710
------------------------------------------ ------ ----
Consolidated statement of changes in equity
For the year ended 30 September 2019
Share Foreign Retained Other Merger Total Non-controlling Total
capital currency earnings distributable reserve interests equity
translation reserve
reserve GBP'000
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------- ------------ --------- -------------- --------- --------- ---------------- ---------
At 30
September
2017 1,652 8 2250 1,494 1,176 6,580 181 6,761
Loss for the
year - - (2,345) - - (2,345) (28) (2,373)
Other
comprehensive
income - (25) - - - (25) (6) (31)
--------------- --------- ------------ --------- -------------- --------- --------- ---------------- ---------
Total
comprehensive
income - (25) (2,345) - - (2,370) (34) (2,404)
Balance at 30
September
2018
as originally
presented 1,652 (17) (95) 1,494 1,176 4,210 147 4,357
Changes in
accounting
policy (7) (214) - - (221) - (221)
Restated total
equity at 1
October
2018 1,652 (24) (309) 1,494 1,176 3,989 147 4,136
--------------- --------- ------------ --------- -------------- --------- --------- ---------------- ---------
Profit for the
year - - 346 - - 346 (14) 332
Other
comprehensive
income - 46 - - - 46 - 46
--------------- --------- ------------ --------- -------------- --------- --------- ---------------- ---------
Total
comprehensive
income - 46 346 - - 392 (14) 378
At 30
September
2019 1,652 22 37 1,494 1,176 4,381 133 4,514
--------------- --------- ------------ --------- -------------- --------- --------- ---------------- ---------
Notes to the audited final results
1 Basis of preparation
The financial statements for the Group and parent have been
prepared in accordance with International Financial Reporting
Standards (IFRSs) as adopted by the European Union and the
Companies Act 2006 as applicable to companies reporting under
IFRSs.
2 Operating segments
The Group comprises three separately reportable geographical
segments ('hubs'), together with a group costs segment.
Geographical segments are based on the location of the operation
undertaking each project.
The Group's operating segments consist of the United Kingdom,
the Middle East and Continental Europe. Turkey and Russia are
included within Continental Europe together with Germany and the
Czech Republic.
Income statement segment information
Segment revenue 2019 2018
GBP'000 GBP'000
-------------------- --------- ---------
United Kingdom 7,454 6,744
Middle East 7,522 6,819
Continental Europe 516 817
Revenue 15,492 14,380
--------------------- --------- ---------
Segment revenue less sub consultant 2019 2018
costs GBP'000 GBP'000
------------------------------------- --------- ---------
United Kingdom 7,379 6,610
Middle East 5,900 5,852
Continental Europe 432 632
Revenue less sub consultant
costs 13,711 13,094
-------------------------------------- --------- ---------
2019 Segment result Before goodwill Fair value Sub-total Reallocation Total
and acquisition gains on of group
adjustments deferred management GBP'000
GBP'000 consideration GBP'000 charges
and acquisition GBP'000
settlement
GBP'000
--------------------- ----------------- ----------------- ---------- ------------- ---------
United Kingdom (89) - (89) 540 451
Middle East (123) 54 (69) 594 525
Continental Europe 351 - 351 144 495
Group costs 99 - 99 (1,278) (1,179)
--------------------- ----------------- ----------------- ---------- ------------- ---------
Profit before tax 238 54 292 - 292
--------------------- ----------------- ----------------- ---------- ------------- ---------
2018 Segment result Before goodwill Fair value Sub-total Reallocation Total
and acquisition gains on of group
adjustments deferred management GBP'000
GBP'000 consideration GBP'000 charges
and acquisition GBP'000
settlement
GBP'000
--------------------- ----------------- ----------------- ---------- ------------- ---------
United Kingdom (1,505) - (1,505) 540 (965)
Middle East (1,336) 127 (1,209) 624 (585)
Continental Europe 131 - 131 153 284
Group costs 39 - 39 (1,317) (1,278)
--------------------- ----------------- ----------------- ---------- ------------- ---------
Loss before tax (2,671) 127 (2,544) - 2,544
--------------------- ----------------- ----------------- ---------- ------------- ---------
3 Earnings per share
The calculations of basic and diluted earnings per share are
based on the following data:
Earnings 2019 2018
GBP'000 GBP'000
---------------------------- --------- ---------
Continuing operations 346 (2,345)
Profit/(loss) for the year 346 (2,345)
---------------------------- --------- ---------
Number of shares 2019 2018
Number Number
-------------------------------------- ------------ ------------
Weighted average of Ordinary Shares
in issue 165,213,652 165,213,652
Effect of dilutive options -
-------------------------------------- ------------ ------------
Diluted weighted average of ordinary
shares in issue 165,213,652 165,213,562
-------------------------------------- ------------ ------------
4 Cash generated from operations
Group As restated
2019 2018
GBP'000 GBP'000
----------------------------------------- ---------- ------------
Profit/(Loss) before tax - continuing
operations 292 (2,544)
Finance costs 42 40
Share of results of associate and
joint ventures (382) (121)
Intangible amortisation 81 80
Depreciation 150 178
Profit on disposal of property,
plant & equipment (3) (14)
Decrease in trade and other receivables 425 1,952
Increase in trade and other payables 86 586
Change in provisions (68) (117)
Unrealised foreign exchange differences 24 (30)
Net cash generated from operations 647 10
------------------------------------------ ---------- ------------
5 Analysis of net funds
Group 2019 2018
GBP'000 GBP'000
--------------------------- --------- ---------
Cash at bank and in hand 1,145 710
Cash and cash equivalents 1,145 710
Secured bank loan (325) (553)
Net funds 820 157
---------------------------- --------- ---------
6 Status of final audited results
This announcement of final audited results was approved by the
Board of Directors on 29 January 2020.
The financial information presented in this announcement has
been extracted from the Group's audited statutory accounts for the
year ended 30 September 2019 which will be delivered to the
Registrar of Companies following the Company's Annual General
Meeting.
The auditor's report on these accounts was unqualified, did not
include references to any matters to which the auditors drew
attention by way of emphasis without qualifying their report, and
did not contain a statement under section 498 of the Companies Act
2006.
Statutory accounts for the year ended 30 September 2018 have
been delivered to the registrar of companies and the auditors'
report on these accounts was unqualified, did not include
references to any matters to which the auditors drew attention by
way of emphasis without qualifying their report, and did not
contain a statement under section 498 of the Companies Act
2006.
The financial information presented in this announcement of
final audited results does not constitute the Group's statutory
accounts for the year ended 30 September 2019.
7 Annual General Meeting
The Annual General Meeting will be held at 12.00pm on Thursday
26 March 2020 at 10 Bonhill Street, London, EC2A 4PE.
8 Annual report and accounts
Copies of the 2019 audited accounts will be available today on
the Company's website (www.aukettswanke.com) for the purposes of
AIM rule 26 and will be posted to shareholders who have elected to
receive a printed version in due course.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR KKCBBBBKBBDB
(END) Dow Jones Newswires
January 30, 2020 02:01 ET (07:01 GMT)
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