TIDMPARK
RNS Number : 3449J
Park Group PLC
04 December 2018
4 December 2018
Park Group plc
("Park" the "Company" or the "Group")
HALF YEAR RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2018
A good performance, in line with expectations
Park is the UK's leading multi-retailer redemption product
provider to corporate and consumer markets. Sales are delivered
through innovative leading edge digital channels, a direct sales
force and a network of agents. Park's business is highly seasonal;
the first half of the year sees an expected loss with the bulk of
annual revenues and profit generated in the second half of the
year.
Financial Highlights
-- Billings increased by 3.3% to GBP109.0m (H1 2017: GBP105.5m)
-- Park revenue* of GBP27.4m (H1 2017: GBP30.6m) reflecting some
low margin business not being repeated
-- Seasonal operating losses reduced to GBP2.3m (H1 2017: GBP2.6m loss)
-- Pre-tax losses reduced to GBP1.5m (H1 2017: GBP1.9m loss)
after interest receipts of GBP0.8m (H1 2017: GBP0.7m)
-- Dividend raised by 5% to 1.05p (H1 2017: 1.0p)
-- Cash balances, including cash held in trust, at 30 September
of GBP212.4m (H1 2017: GBP199.6m); average cash balances of
GBP175.4m (H1 2017: GBP166.1m)
* 2017 restated following adoption of IFRS15, which requires
some revenues to be reported on a 'net' basis, as outlined in our
IFRS15 transition document
Operational Highlights
-- Corporate and Consumer businesses performed well in the first half
-- Profitability enhanced following some low margin business not being repeated
-- New major retailer partners added to portfolio since the
beginning of the first half have included Arcadia, Fat Face and The
Entertainer
-- Order book comfortably ahead of comparative period,
reflecting strong Corporate orders and stable Consumer orders as
previously guided
-- Operational efficiency improvements leading to an improved customer experience
-- Tim Clancy appointed as Chief Financial Officer in August
Four pillars of our strategic business plan announced, with
initial actions being implemented:
1. We will focus on our multi-retailer redemption proposition;
-- separating hamper production from the core business as a step
towards simplifying our product range
2. We will be easier to work with for all of our customers (consumer, businesses and retailers);
-- maximising our use of industry infrastructure and technology
to launch a virtual prepaid card
3. We will be more efficient and effective;
-- moving to new offices in Liverpool city centre to enable
optimal use of assets and attract talent
4. We will broaden our customer appeal to drive growth;
-- launching a new product targeting a GBP2 billion market with
a broader demographic and in which we currently do not compete
Laura Carstensen, Chairman, commented:
"Park performed well in the first half, consistent with our
expectations for the year as a whole and we are encouraged by our
order book which is ahead of the same time last year overall.
"We are excited to announce the principal pillars of our new
strategic business plan and the initial actions we are undertaking
to deliver it. We continue to be encouraged by the future
opportunities for Park and are optimistic about how the plan will
enhance these opportunities further and accelerate our future
growth trajectory."
Park will host a presentation for analysts at MHP
Communications' offices (6 Agar Street, London, WC2N 4HN) at 9.30am
this morning.
If you would like to attend, please contact MHP on 020 3128 8193
or parkgroup@mhpc.com.
A video of the presentation will be available on Park's website
later today.
For further information please contact:
Park Group plc Arden Partners plc MHP Communications
Ian O'Doherty Paul Shackleton Reg Hoare
Tim Clancy Steve Douglas Katie Hunt
Stephen Miller Benjamin Cryer Patrick Hanrahan
Charles Hirst
Tel: 0151 653 1700 Tel: 020 7614 5920 Tel: 020 3128 8193
Business review for the six months ended 30 September 2018
Introduction
Park performed well in the first half, consistent with our
expectations for the year as a whole. As we are a seasonal business
with approximately a quarter of our revenue reported in the first
half, and three quarters of revenue reported in the second half
(commencing 1 October), we have as expected reported a loss, albeit
a reduced loss compared to the first half of the prior year.
Although the first half is a quieter period, within the business
our team has been very busy developing our strategic business plan
for the next stage of Park's growth. This work is being led by our
Chief Executive Ian O'Doherty, who joined us in January 2018. All
the work has been informed by in depth product research conducted
on the Group's behalf with its customers and staff.
The research project reinforced our confidence in the long-term
growth opportunity for Park, the robustness of demand for our
products and services, and the high regard in which we are held by
customers. However, it also identified that we have the opportunity
to improve our products and tap into potential enhanced demand when
these improvements are delivered.
In the strategy section below, we set out the plan that the
Board has approved, and which is now being implemented. A number of
important projects are already being undertaken, which are intended
to enhance Park's operating and financial performance in future
years.
Results for the half year
This reporting period represents Ian's first full period
managing the business. These results are also Park's first in which
we are required to present them under a new accounting standard
known as 'IFRS15 - Revenue from contracts with customers'. In the
simplest terms, this change requires us to report revenue on a
'net' basis rather than 'gross' for some products but does not
impact billings, and we have restated prior years to provide a like
for like comparative. This does not change the profitability of the
business model nor impact on cash flow. The following numbers for
the period are presented on this basis and note 1 to the half year
results below sets out further details of the impact of adopting
IFRS15 on the financial information being presented.
Billings increased 3.3% in the six months to 30 September 2018
to GBP109.0m (H1 2017: GBP105.5m) while Park revenue was down 10.3%
at GBP27.4m (H1 2017: GBP30.6m) as a result of some low margin
business not being repeated. This is reflected in reduced operating
losses of GBP2.3m (H1 2017: loss GBP2.6m). Losses would have been
GBP0.3m lower still but for the fees that are being incurred for
the strategy work currently underway, including the market research
project referred to above. Interest receipts were GBP0.8m (H1 2017:
GBP0.7m) on average cash balances of GBP175.4m (H1 2017: GBP166.1m)
producing a reduced pre-tax loss of GBP1.5m (H1 2017: loss
GBP1.9m). Total cash balances, including cash held in trust at 30
September 2018, were GBP212.4m (H1 2017: GBP199.6m).
Interim dividend
The Board has declared an interim dividend of 1.05p per share, a
5% increase on the comparative period (H1 2017: 1.00p). The
dividend will be paid on 8 April 2019 to shareholders on the
register on 1 March 2019. Park's dividend policy is linked to the
cash we generate and business performance. It is noteworthy that
the total dividend has more than doubled over the last eight years,
reflecting the success of Park and our confidence in the future.
The Board will keep our dividend policy under review as the
business develops.
Strategy and business plan
Background
Our comprehensive review of the business has been intended to
ensure that we have the right strategy and business plan in place
for the future, in order to strengthen both Park's market position
and take advantage of the growth opportunities we see. This is in
the context of two major market themes in our industry - first, we
believe the market has become more competitive and, secondly and
importantly, we believe Park could grow faster if the right product
and service offerings are made available to a wider customer base,
whether consumers, corporates or retailers.
Market research project
The review included a wide ranging survey of the market
(analysing customers' and staff attitudes and behaviours), and an
in-depth analysis of the operations and platform we will require to
deliver the plan. The main findings were as follows:
-- Park is well regarded by its customers which provides opportunities to do more with them
-- There is a lot of opportunity to improve our products and meet latent demand for them
-- It is not as easy as it should be to find, buy and gift our products
-- Format confusion (i.e. between paper, plastic and digital) has been suppressing demand
-- The product experience can be improved to make it easier to give and use
-- There is a requirement for a more relevant and curated retailer cohort
-- We need to enhance the service and products we provide to our retailer partners
Our new strategic business plan
Having completed the review and considered the research
findings, today we announce the principal pillars of our new
strategic business plan and the initial actions we are undertaking
to deliver it. The four pillars are:
1. We will focus on our multi-retailer redemption proposition -
with a simplified product range and refined branding;
2. We will be easier to work with for all our customers
(consumers, businesses and retailers) - by making full use of
available technologies to access our products and services;
3. We will be more efficient and effective - by optimising the
use of our operating assets including facilities, technology and
infrastructure; and,
4. We will broaden our customer appeal to drive growth - we
believe there is a broader market to be targeted than our existing
one if we have the right product and branding in place.
The initial actions to deliver the strategy will include the
following:
1. We will separate our hamper production from the core business
- which will enable us to simplify our product range and refine our
branding;
2. We will maximise our use of industry infrastructure and
technology - which will enhance our virtual prepaid product
range;
3. We will move to new fit-for-purpose offices* - which would
help to unify our teams, attract top class talent, cement our
culture, and enable more efficient working; and,
4. We will launch a new consumer product and distribution - as
our core offering is attractive to a much wider demographic than it
currently reaches.
We will make further announcements as we roll out the above
actions in the coming weeks and months, subject to how quickly we
can reach agreements with relevant third parties.
* Glenbrook, the leading North West property development and
investment firm, has been appointed as our adviser.
Divisional review
All our business lines traded well in the first half. Analysed
by Market, Corporate billings of GBP74.7m were 1% ahead of last
year despite not continuing a low margin product through our
intermediary channel (which contributed GBP6.3m of billings in the
prior half year). Corporate revenue of GBP20.6m (adjusted for
IFRS15) is also down on last year for the same reason (H1 2017:
GBP24.8m) but segmental profit of GBP2.4m was GBP0.3m ahead of the
comparative period due to an improved mix of products generating
higher gross margin. Our Consumer business billings of GBP34.3m
were 9% above the comparative period reflecting some growth but
mainly due to earlier despatches than in the prior year. Consumer
revenue of GBP6.8m (adjusted for IFRS15) was GBP1.0m above last
year (also reflecting the timing of despatches) producing a reduced
segmental loss of GBP3.1m versus a loss of GBP3.4m in the first
half of the prior year.
We announced in July some major new customer signings that boost
the opportunities for our customers and clients across the UK.
These included Arcadia Group Ltd. (which owns high street brands
such Topshop, Topman and Miss Selfridge), Office Outlet (formerly
Staples Inc.), Jaeger, Austin Reed, DJM Music, Fat Face, and TK
Maxx. More recently we have also added the national toy retailer
'The Entertainer' to our portfolio. These new additions, mean
Park's gift vouchers are now accepted by more than 175 national
brands and over 20,000 high street stores across the UK.
During the period we have initiated a number of important
projects, many of them driven by the new strategic business plan
and focused on investing in our people and facilities and enhancing
our culture and working environment. For example, we have invested
in our IT infrastructure and team, modernised our human resources
policies and practices, reviewed our incentivisation arrangements,
and undertaken our first employee engagement survey.
We have also launched a number of new customer initiatives -
including extended self-service for our Christmas savers, the first
Sun Life TV advertisements, and our new Shout! social employee
recognition system which has been well received by corporate
customers.
Board and management
We were pleased to appoint Tim Clancy as Chief Financial Officer
with effect from August 2018, to succeed Martin Stewart. Tim has a
great deal of board level experience in businesses and sectors
which are extremely relevant to Park.
We have also made important appointments to our senior
management team to strengthen our platform and ensure we are fit
for future growth as we implement the new strategic plan,
particularly in the area of operations and technology. We will
continue to strengthen the team further through recruitment and
training.
Outlook
Overall our outlook for underlying trading for the second half
and the year as a whole is unchanged, allowing for the limited
impact on profits of IFRS15.
Our order book forecast is ahead of last year, reflecting strong
orders in our Corporate business and broadly stable orders for our
Consumer business in line with our expectation at the time of our
full year results in June 2018. Cash balances, including monies
held in trust, are ahead of last year reflecting growth in the
business.
In summary, we continue to be encouraged by the opportunities
for Park and are optimistic about how the strategic plan will
enhance these opportunities further and accelerate our future
growth trajectory.
Laura Carstensen, Chairman
PARK GROUP PLC
PARK GROUP PLC
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE HALF YEAR TO 30 SEPTEMBER 2018
Restated Restated
Half Year Half Year Year to
Notes to 30.09.18 to 30.09.17 31.03.18
GBP'000 GBP'000 GBP'000
Billings 108,964 105,463 412,786
-------------- ------------- ----------
Revenue
* Goods 15,155 20,262 69,118
* Services 12,217 10,260 41,864
* Other 23 30 72
-------------- ------------- ----------
27,395 30,552 111,054
Cost of sales (21,074) (24,616) (79,628)
-------------- ------------- ----------
Gross profit 6,321 5,936 31,426
Distribution costs (637) (616) (3,002)
Administrative expenses (7,988) (7,908) (17,107)
-------------- ------------- ----------
Operating (loss)/profit (2,304) (2,588) 11,317
Finance income 778 666 1,274
Finance costs - - (4)
-------------- ------------- ----------
(Loss)/profit before taxation (1,526) (1,922) 12,587
Taxation 2 290 365 (2,398)
-------------- ------------- ----------
(Loss)/profit for the period
attributable to equity holders
of the parent (1,236) (1,557) 10,189
-------------- ------------- ----------
(Loss)/earnings per share 3
- basic (p) (0.67) (0.84) 5.50
- diluted (p) (0.67) (0.84) 5.48
All activities derive from continuing operations.
PARK GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF YEAR TO 30 SEPTEMBER 2018
Restated Restated
Half Year Half Year Year to
to 30.09.18 to 30.09.17 31.03.18
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (1,236) (1,557) 10,189
Other comprehensive income
Items that will not be reclassified to
profit or loss:
Remeasurement of defined benefit pension
schemes - - 1,142
Deferred tax on defined benefit pension
schemes - - (194)
- - 948
Items that may be reclassified subsequently
to profit or loss:
Foreign exchange translation differences - (24) (20)
Other comprehensive income for the period
net of tax - (24) 928
------------ ------------ ---------
Total comprehensive income for the period
attributable to equity holders of the
parent (1,236) (1,581) 11,117
------------ ------------ ---------
PARK GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2018
Restated Restated
30.09.18 30.09.17 31.03.18
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Goodwill 2,185 2,202 2,185
Other intangible assets 2,218 2,549 2,278
Property, plant and equipment 7,607 7,691 7,684
Retirement benefit asset 3,047 1,827 2,721
15,057 14,269 14,868
---------- ---------- ----------
Current assets
Inventories 18,596 23,127 3,808
Trade and other receivables 10,841 11,396 10,917
Tax receivable 1,271 1,224 195
Other financial assets - - 200
Monies held in trust 179,895 194,240 86,992
Cash and cash equivalents 34,544 7,760 40,311
245,147 237,747 142,423
---------- ---------- ----------
Total assets 260,204 252,016 157,291
---------- ---------- ----------
Liabilities
Current liabilities
Trade and other payables (192,209) (191,880) (94,592)
Provisions (60,008) (58,138) (48,012)
---------- ---------- ----------
(252,217) (250,018) (142,604)
---------- ---------- ----------
Non-current liabilities
Deferred tax liability (662) (194) (662)
Retirement benefit obligation - (625) -
---------- ---------- ----------
(662) (819) (662)
---------- ---------- ----------
Total liabilities (252,879) (250,837) (143,266)
---------- ---------- ----------
Net assets 7,325 1,179 14,025
---------- ---------- ----------
Equity attributable to equity holders of the parent
Share capital 3,723 3,711 3,711
Share premium 6,373 6,137 6,137
Retained earnings (2,460) (8,358) 4,488
Other reserves (311) (311) (311)
---------- ---------- ----------
Total equity 7,325 1,179 14,025
---------- ---------- ----------
PARK GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Other Retained Total
capital premium reserves earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Audited balance at 1 April
2018 as originally reported 3,711 6,137 (311) 8,320 17,857
Restatement due to adoption
of IFRS15 - - - (3,832) (3,832)
--------- --------- ---------- ---------- ----------
Unaudited restated balance
at 1 April 2018 3,711 6,137 (311) 4,488 14,025
Total comprehensive income
for the period
Loss - - - (1,236) (1,236)
Total comprehensive income
for the period - - - (1,236) (1,236)
--------- --------- ---------- ---------- ----------
Transactions with owners,
recorded directly in equity
Equity settled share-based
payment transactions - - - (41) (41)
Exercise of share options 9 236 - - 245
LTIP shares awarded 3 - - (3) -
Dividends - - - (5,668) (5,668)
--------- --------- ---------- ---------- ----------
Total contributions by and
distribution to owners 12 236 - (5,712) (5,464)
--------- --------- ---------- ---------- ----------
Balance at 30 September 2018 3,723 6,373 (311) (2,460) 7,325
--------- --------- ---------- ---------- ----------
Audited balance at 1 April
2017 as originally reported 3,687 6,137 (311) 2,912 12,425
Restatement due to adoption
of IFRS15 - - - (3,612) (3,612)
--------- --------- ---------- ---------- ----------
Unaudited restated balance
at 1 April 2017 3,687 6,137 (311) (700) 8,813
Total comprehensive income
for the period
Loss as restated - - - (1,557) (1,557)
Other comprehensive income
Foreign exchange translation
adjustments - - - (24) (24)
--------- --------- ---------- ---------- ----------
Total other comprehensive
income - - - (24) (24)
--------- --------- ---------- ---------- ----------
Total comprehensive income
for the period - - - (1,581) (1,581)
--------- --------- ---------- ---------- ----------
Transactions with owners,
recorded directly in equity
Equity settled share-based
payment transactions - - - (683) (683)
LTIP shares awarded 24 - - (24) -
Dividends - - - (5,370) (5,370)
--------- --------- ---------- ---------- ----------
Total contributions by and
distribution to owners 24 - - (6,077) (6,053)
--------- --------- ---------- ---------- ----------
Balance at 30 September 2017 3,711 6,137 (311) (8,358) 1,179
--------- --------- ---------- ---------- ----------
Audited balance at 1 April
2017 as originally reported 3,687 6,137 (311) 2,912 12,425
Restatement due to adoption
of IFRS15 - - - (3,612) (3,612)
--------- --------- ---------- ---------- ----------
Unaudited restated balance
at 1 April 2017 3,687 6,137 (311) (700) 8,813
Total comprehensive income
for the year
Profit as restated - - - 10,189 10,189
Other comprehensive income
Remeasurement of defined
benefit pension schemes - - - 1,142 1,142
Tax on defined benefit pension
schemes - - - (194) (194)
Foreign exchange translation
adjustments - - - (20) (20)
--------- --------- ---------- ---------- ----------
Total other comprehensive
income - - - 928 928
--------- --------- ---------- ---------- ----------
Total comprehensive income
for the year - - - 11,117 11,117
--------- --------- ---------- ---------- ----------
Transactions with owners,
recorded directly in equity
Equity settled share-based
payment transactions - - - (620) (620)
Tax on equity settled share-based
payment transactions - - - 85 85
LTIP shares awarded 24 - - (24) -
Dividends - - - (5,370) (5,370)
--------- --------- ---------- ---------- ----------
Total contributions by and
distribution to owners 24 - - (5,929) (5,905)
--------- --------- ---------- ---------- ----------
Balance at 31 March 2018 3,711 6,137 (311) 4,488 14,025
--------- --------- ---------- ---------- ----------
PARK GROUP PLC
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF YEAR TO 30 SEPTEMBER 2018
Restated Restated
Half Year Half Year Year to
Notes to 30.09.18 to 30.09.17 31.03.18
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Cash generated from/(used in)
operations 4 4,053 (20,168) 10,540
Interest received 569 572 1,271
Interest paid - - (4)
Tax paid (786) (1,284) (2,537)
-------------- ------------- ----------
Net cash generated from/(used
in) operating activities 3,836 (20,880) 9,270
-------------- ------------- ----------
Cash flows from investing activities
Proceeds from sale of property,
plant and equipment - 1 1
Purchase of intangible assets (307) (244) (361)
Purchase of property, plant and
equipment (230) (329) (659)
Net cash used in investing activities (537) (572) (1,019)
-------------- ------------- ----------
Cash flows from financing activities
Proceeds from exercise of share
options 245 - -
Dividends paid to shareholders (5,307) (4,515) (5,370)
-------------- ------------- ----------
Net cash used in financing activities (5,062) (4,515) (5,370)
-------------- ------------- ----------
Net (decrease)/increase in cash
and cash equivalents (1,763) (25,967) 2,881
-------------- ------------- ----------
Cash and cash equivalents at
beginning of period 34,243 31,362 31,362
-------------- ------------- ----------
Cash and cash equivalents at
end of period 32,480 5,395 34,243
-------------- ------------- ----------
Cash and cash equivalents comprise:
Cash 34,544 7,760 40,311
Bank overdrafts (2,064) (2,365) (6,068)
-------------- ------------- ----------
32,480 5,395 34,243
-------------- ------------- ----------
PARK GROUP PLC
SEGMENTAL REPORTING
FOR THE HALF YEAR TO 30 SEPTEMBER 2018
Restated Restated
Half Year Half Year Year to
to 30.09.18 to 30.09.17 31.03.18
GBP'000 GBP'000 GBP'000
Billings
Consumer 34,257 31,433 224,542
Corporate 74,707 74,030 188,244
------------- ------------- ----------
External billings 108,964 105,463 412,786
------------- ------------- ----------
Consumer - - -
Corporate 21,846 20,862 140,751
Elimination (21,846) (20,862) (140,751)
------------- ------------- ----------
-
Inter-segment billings - - -
------------- ------------- ----------
Consumer 34,257 31,433 224,542
Corporate 96,553 94,892 328,995
Elimination (21,846) (20,862) (140,751)
------------- ------------- ----------
Total billings 108,964 105,463 412,786
------------- ------------- ----------
Revenue
Consumer 6,785 5,766 58,601
Corporate 20,610 24,786 52,453
------------- ------------- ----------
External revenue 27,395 30,552 111,054
------------- ------------- ----------
Consumer - - -
Corporate 5,632 5,373 39,462
Elimination (5,632) (5,373) (39,462)
------------- ------------- ----------
Inter-segment revenue - - -
------------- ------------- ----------
Consumer 6,785 5,766 58,601
Corporate 26,242 30,159 91,915
Elimination (5,632) (5,373) (39,462)
------------- ------------- ----------
Total revenue 27,395 30,552 111,054
------------- ------------- ----------
Operating (loss)/profit
Consumer (3,085) (3,382) 6,822
Corporate 2,423 2,085 7,123
All other segments (1,642) (1,291) (2,628)
------------- ------------- ----------
(Loss)/profit before interest (2,304) (2,588) 11,317
------------- ------------- ----------
NOTES TO THE HALF YEAR RESULTS
(1) Basis of preparation
With effect from 1 April 2018 the Group has adopted IFRS15,
Revenue from Contracts with Customers and IFRS9, Financial
Instruments. In respect of IFRS15, the Group has applied the full
retrospective approach when transitioning to the new standard and
as a consequence the date of transition to IFRS15 was 1 April 2014.
The Group has prepared its opening balance sheet as at that date.
The effects of adopting IFRS15 have been set out in the Group's
transition document which can be found on our website at
www.parkgroup.co.uk. The adoption of IFRS9 has not had a material
impact on the financial statements and no restatements have been
made in respect of prior periods.
The financial information in this interim report has been
prepared in accordance with the International Financial Reporting
Standards as adopted by the EU and the AIM rules of the London
Stock Exchange and on the basis of the accounting policies
described in Park Group plc's annual report and accounts for the
year ended 31 March 2018, other than those in relation to revenue
which can be found in the transition document. These accounting
policies have been based on the current standards and
interpretations expected to be effective at 31 March 2019. The
Group does not expect there to be a significant impact on the
results from standards, amendments or interpretations which are
available for early adoption but which have not yet been
adopted.
The comparative figures set out in the interim financial
statements for the half year to 30 September 2017 have been
restated to reflect the revised accounting policies. The figures in
respect of the year to 31 March 2018 have been extracted from the
audited 2018 financial statements and then adjusted for IFRS15
restatements. As described in Park Group's annual report and
accounts for the year ended 31 March 2018 the adoption of IFRS15
has led to significantly lower revenues, an immaterial movement in
operating profit and a reduced net asset position for all periods
covered by the transition document. For periods covered by this
interim report, these amounts have been restated as follows:
Half Year Year to
to 31.03.18
30.09.17 GBP'000
GBP'000
Revenue as originally reported 74,703 296,188
Restatement due to adoption of IFRS15 (44,151) (185,134)
Revenue as restated 30,552 111,054
---------- ----------
Operating (loss)/profit as originally
reported (2,237) 11,589
Restatement due to adoption of IFRS15 (351) (272)
Operating (loss)/profit as restated (2,588) 11,317
---------- ----------
Net assets as originally reported 5,075 17,857
Restatement due to adoption of IFRS15 (3,896) (3,832)
Net assets as restated 1,179 14,025
---------- ----------
The financial statements have been prepared under the historical
cost convention, as modified by the accounting for financial
instruments at fair value. In addition, this interim financial
report does not comply with IAS34 Interim Financial Reporting,
which is not currently required to be applied under AIM rules.
The directors are of the opinion that the financial information
should be prepared on a going concern basis, in the light of
current trading and the forecast positive cash balances for the
foreseeable future.
The financial information included in this interim financial
report for the six months ended 30 September 2018 does not
constitute statutory accounts as defined in section 434 of the
Companies Act 2006 and is unaudited. A copy of the Group's
statutory accounts for the year ended 31 March 2018, on which the
auditors gave an unqualified opinion and did not make a statement
under section 498 of the Companies Act 2006, has been filed with
the registrar of companies.
(2) Taxation
The taxation credit for the six months to 30 September 2018 has
been calculated using an overall effective tax rate of 19.0 per
cent which has been applied to the taxable income (half year to 30
September 2017 - 19.0 per cent).
(3) Earnings per share
Basic earnings per share (EPS) is calculated by dividing the
earnings attributable to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the
period.
For diluted EPS, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of all dilutive potential
ordinary shares.
The calculation of basic and diluted EPS is based on the
following figures:
Restated Restated
Half Year Half Year Year to
to 30.09.18 to 30.09.17 31.03.18
GBP'000 GBP'000 GBP'000
Earnings
Total (loss)/earnings for period (1,236) (1,557) 10,189
--------------- --------------- -------------
Half Year Half Year Year to
to 30.09.18 to 30.09.17 31.03.18
Weighted average number of
shares
Basic EPS - weighted average
number of shares 185,709,925 184,979,921 185,268,587
Diluting effect of employee
share options - - 601,293
--------------- --------------- -------------
Diluted EPS - weighted average
number of shares 185,709,925 184,979,921 185,869,880
--------------- --------------- -------------
Basic EPS
Weighted average number of
ordinary shares in issue 185,709,925 184,979,921 185,268,587
--------------- --------------- -------------
EPS (p) (0.67) (0.84) 5.50
--------------- --------------- -------------
Diluted EPS
Weighted average number of
ordinary shares 185,709,925 184,979,921 185,869,880
--------------- --------------- -------------
EPS (p) (0.67) (0.84) 5.48
--------------- --------------- -------------
(4) Reconciliation of net (loss)/profit to net cash
inflow/(outflow) from operating activities
Restated Restated
Half Year Half Year Year
to 30.09.18 to 30.09.17 to 31.03.18
GBP'000 GBP'000 GBP'000
Net (loss)/profit (1,236) (1,557) 10,189
Adjustments for:
Tax (290) (365) 2,398
Interest income (778) (666) (1,274)
Interest expense - - 4
Research and development tax
credit - - (121)
Depreciation and amortisation 675 703 1,428
Impairment of goodwill - - 17
Profit on sale of property,
plant and equipment - (1) (1)
Decrease in other financial
assets 200 200 -
Increase in inventories (14,788) (20,496) (1,176)
Decrease/(increase) in trade
and other receivables 284 (2,065) (1,678)
Increase in trade and other
payables 101,260 104,335 4,197
Increase in provisions 11,996 11,973 1,848
Increase in monies held in
trust (92,903) (111,223) (3,974)
Increase in retirement benefit
asset (326) (299) (676)
Translation adjustment - (24) (20)
Taxes paid on share-based payments - - (851)
Share-based payments (41) (683) 230
Net cash inflow/(outflow) from
operating activities 4,053 (20,168) 10,540
------------- ------------- -------------
(5) Approval
This statement was approved by the board on 3 December 2018.
(6) Reports
A copy of this announcement will be available on the Company's
website from today www.parkgroup.co.uk and will be mailed to
shareholders on or before 20 December 2018. Copies will also be
available for members of the public at the Company's registered
office - Valley Road, Birkenhead CH41 7ED and also at the offices
of the Company's registrars, Computershare Investor Services PLC, P
O Box 82, The Pavilions, Bridgwater Road, Bristol BS99 7NH.
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
IR TIBFTMBIMMMP
(END) Dow Jones Newswires
December 04, 2018 02:01 ET (07:01 GMT)
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