TIDMAUK

RNS Number : 3888D

Aukett Swanke Group PLC

29 June 2021

Aukett Swanke Group Plc

Interim results

For the six months ended 31 March 2021

Aukett Swanke Group Plc (the "Group"), the international practice of architects, interior designers and engineers, is pleased to announce its interim results for the six-month period ended 31 March 2021.

Highlights

The Group's most recent 12 months of trading has occurred during the COVID-19 pandemic.

                                                                      H1/2021        H2/2020 
   Extract                                                          GBP000              GBP000 
   Revenue less sub consultant costs        4,139              4,476   fall of 7.5% 
   Operating costs                                         5,178              4,959   rise of 4.4% 
   Operating loss                                          (1,039)               (483) 
   Loss before tax                                         (1,017)               (182) 
   Net Funds                                                      201                  837 

Before management charges the UK & UAE made reported losses while Continental Europe maintained its profitability.

UK wrote GBP6.0m of new orders and Berlin EUR4.0m in H1/2021 (fees net of subconsultant costs).

Banking facilities increased from GBP500k to GBP1m in May 2021.

Commenting on the interim results, CEO Nicholas Thompson said:

"These results show the full impact of the uncertainties created by COVID-19 in the form of project delays and deferments.

Action taken during the period under review, and subsequently, has provided additional support to our business model and should improve our financial performance. However, this is unlikely to come soon enough to avoid reporting a loss for the year as a whole."

Enquiries

Aukett Swanke Group Plc - 020 7843 3000

Nicholas Thompson, Chief Executive Officer

Antony Barkwith, Group Finance Director

Arden Partners Plc - 020 7614 5900

Corporate Finance: John Llewellyn-Lloyd; Akhil Shah

Investor/Media enquiries - Chris Steele - 07979 604687

Interim statement

Overview

Any meaningful analysis of these results needs to look behind the figures and at the impact of COVID-19.

The building process takes several years from inspiration to occupation with the result standing for decades. During the formative stage any economic or political uncertainty, and now, pandemic uncertainty, leads to decision makers waiting for such uncertainty to play itself out. This is an industry wide phenomenon and has both the inevitability of the process taking longer but also the consequential pressure on margins as fewer contracts are available to the consultant market, which remains undiminished.

It is against this backdrop that the results for the first six months need to be judged.

Having said this, we continue to win work and two of our operations have successfully written a significant amount of new business that is spread over the next three years. Our focus continues to be on maintaining a resilient and viable commercial operation at minimal cost and within our financing capability.

Group Results

Group revenues fell to GBP5.28m, some GBP2.1m lower than in the same period in 2020. However, revenue less sub consultant costs at GBP4.14m was only 7.5% (GBP337k) lower than in H2/2020. It is this reduced level that allowed us to control staff costs in anticipation of project conversions or further instructions. Although such new work did not happen in the volumes hoped in the period under review and therefore resulted in a deeper loss, the capacity of the group businesses has been preserved.

To have a value going forward it was key to preserve a critical mass in each business.

United Kingdom

Revenues were down 16% at GBP3.44m (2020: GBP4.09m) but higher than H2/2020 due to the inclusion of a larger amount of pass through income which is offset by matching sub consultant costs. Revenue net of sub consultant costs at GBP2.59m was some GBP313k lower than in H2/2020. This, along with fewer staff being put on furlough so as to support bid opportunities, and a one-off cost in respect of R&D tax credits of GBP72k, resulted in losses before tax (and before management charges) increasing from GBP97k in H2/2020 to GBP567k in H1/2021. We had a reasonable expectation of some growth in H1/2021 but that did not materialise in full and, therefore, much time was spent on bidding for new projects - some successfully - but insufficient in number.

The resulting loss of GBP567k (2020: profit GBP311k) before management charges reflects a significant reduction in revenue of GBP1.5m (GBP2.59m vs GBP4.09m in the prior year), of which just under half was mitigated by cost reductions.

The main beneficiary in H1 from the rebound in activity levels was our executive architecture arm, Veretec, which won a small number of large projects and secured its financial position with two major wins and one continuing instruction. Firstly, a new 470 residential apartment block at Vulcan Wharf for London Square and the second for a major pharmaceutical refurbishment project in Surrey for UCB with Heatherwick Studio as design lead. In addition, a large West End project that had stalled, re-commenced earlier than expected in H1. The Veretec business is expected to perform better in H2 this year and into next year based on its strong order book.

The design business has seen an increase in market opportunities but has also seen an even greater incidence of price competition. There have also been continuing delays in passing through project gateways. This situation could all turn on a very small number of positive decisions in our favour, but until then we continue to hold our staffing structure and hence our cost base. This has been alleviated, to a reducing extent, through some marginal use of the government furlough scheme.

The main contract wins in the half year included De Beers and an instruction to move our GBP60m EQ building in Bristol to the site phase. We also commenced a number of hybrid building feasibilities and pre applications.

The combination of these new project wins generates GBP6m in fees of which GBP4.8m will be recognised in future periods.

As with many companies we have not fully returned to the office since March 2020, and we are now considering how we can more economically utilise this space and the available occupancy options with a view to lowering this high fixed cost.

Middle East

The impact of lockdown and consequently restrictions and a general reduction in market activity impacted revenues levels with H1 falling 50% from last year to GBP1.58m (2020: GBP3.14m). Fortunately, the ongoing re-structuring exercise, involving fewer Licenses and consequent reduced overhead costs contributed to a 45% fall in costs, which did, almost, but not quite, offset the revenue decline. The net result before management charges is a loss of GBP79k (2020: Profit GBP103k).

During the first half we saw the closing out of five major projects, and these being replaced by two school instructions (one new client) and three luxury residential villas at Jumeriah Park, three delivery projects in Saudi Arabia and a project in Cairo for a Dubai Developer, as well as a number of Dubai Expo projects. Currently the largest new project is on hold and this may impact the full year result this year. Under framework contracts we continue to roll out a programme for Etisalat which comprises 28 projects this year and a framework for Du telecom.

Continental Europe

The performance of our businesses in Continental Europe was positive in the 6 months to 31 March 2021. Our single wholly owned subsidiary increased revenues to GBP258k (2020: GBP147k). However, profit before central costs fell slightly to GBP227k (2020: GBP247k) - with all joint ventures and associates producing positive results.

The Turkish operation has continued the success of the previous year completing interior fit-out projects for significant corporate clients, several being repeat commissions to provide new COVID-19 compliant workplaces including Google, Allianz and VM Ware. New projects include interior fitouts for LC Waikiki, the HQ for Vakifbank and architectural projects for a private villa, a hotel and an office extension in Istanbul.

The associate and joint venture operations in Berlin and Frankfurt have enjoyed relatively stable market conditions. Completions by the Berlin studio include the Haus an der Dahme apartment building, the design for the refurbishment of the Bahn Tower at the Sony Centre. The Edge Tower, set to become the tallest building in Berlin and pre-let to Amazon, has started on site. The Frankfurt studio continues to complete phased refurbishments of the iconic MesseTurm building including interior fitouts for incoming and existing tenants including D&G, Tata and an American bank.

Following a significant market downturn in the Czech Republic during the latter part of 2020, and with no new opportunities forthcoming our Prague office permanently ceased trading having completed work on the Churchill Residences and projects for WPP and Exxon Mobil.

The Moscow operation completed several concept designs for mixed use projects in Moscow and the regions, including collaborations with the London studio on a significant education centre and a private residence project in Moscow.

The Moscow operation is continuing to make a positive contribution to the Group results.

Group costs

Our central costs increased by GBP73k to GBP598k (2020: GBP525k) due primarily to GBP71k of foreign exchange losses occasioned by the strengthening of sterling.

Goodwill and other intangible assets

Management have reviewed and considered performance of all aspects of the business. Materially, the loss in the period has been caused by short-term trading volatility and slow development of the pipeline for the FY21 due to COVID-19 uncertainty.

Management have considered the long-term cash flows and prospects of the Group, and as a result of this have concluded that the value in use models prepared as at 30 September 2020 in support of goodwill and intangible asset valuation remain viable and therefore that no impairment is considered to be required as a result.

Funding and Going Concern

At times of uncertainty cash management is key.

Cash balances at the period end were GBP76k greater than the corresponding period in 2020 despite repaying more than GBP100k of the term loan taken out to fund the purchase of our UAE businesses in 2016, which will be paid in full in July 2021. Net funds of GBP201k were therefore GBP212k higher than in March 2020.

Since the period end, we have secured additional funding by way of GBP500k from the Coronavirus Business Interruption Loan Scheme ("CBILS"), which is in addition to the current bank overdraft facility of GBP500,000.

This CBILS facility provides additional headroom whilst we navigate our way through the payments that were deferred from 2020 (VAT, rent and some other overheads costs). The arrangement fees for this loan and the first year of interest is paid for by the UK Government and the funds will mainly be used instead of the current bank overdraft facility as and when it is necessary. The loan has a duration of three years with interest at 4.05% over the Coutts base rate (currently 0.1%) in years two and three. We expect to repay the CBILS loan before the expiry of the term.

The cash management actions taken to date, plus the extended facilities, allow the Board to continue to use the going concern basis of accounting for these interim results.

Prospects

Not all of the group's issues can be attributed to COVID-19, however it is our number one concern.

While we cannot predict with any confidence when things will improve, we firmly believe that they will, and we now have the funding in place to help us bridge the time frame between today's market activity levels and the levels that we expect to return in the period ahead.

Nicholas Thompson

Chief Executive Officer

28 June 2021

Consolidated income statement

For the six months ended 31 March 2021

 
                                     Note      Unaudited      Unaudited         Audited 
                                              six months     six months         year to 
                                             to 31 March    to 31 March    30 September 
                                                    2021           2020            2020 
                                                 GBP'000        GBP'000         GBP'000 
 Revenue                              3            5,280          7,375          12,166 
 
 Sub consultant costs                            (1,141)          (515)           (830) 
----------------------------------  -----  -------------  -------------  -------------- 
 Revenue less sub consultant 
  costs                                            4,139          6,860          11,336 
 
 Personnel related costs                         (3,997)        (5,430)         (9,600) 
 Property related costs                            (639)          (650)         (1,295) 
 Other operating expenses                          (732)          (867)         (1,324) 
 Other operating income               4              190            142             455 
----------------------------------  -----  -------------  -------------  -------------- 
 Operating (loss) / profit                       (1,039)             55           (428) 
 
 Finance costs                                      (49)           (78)           (112) 
----------------------------------  -----  -------------  -------------  -------------- 
 Loss after finance costs                        (1,088)           (23)           (540) 
 
 Gain on disposal of subsidiary                        -             53              52 
 Share of results of associate 
  and joint ventures                                  71            106             442 
----------------------------------  -----  -------------  -------------  -------------- 
 (Loss) / profit before tax           3          (1,017)            136            (46) 
 
 Tax credit / (charge)                               409           (34)              26 
----------------------------------  -----  -------------  -------------  -------------- 
 
 (Loss) / profit for the period                    (608)            102            (20) 
----------------------------------  -----  -------------  -------------  -------------- 
 
 (Loss) / profit attributable 
  to: 
    Owners of Aukett Swanke Group 
     Plc                                           (603)             96               5 
    Non-controlling interests                        (5)              6            (25) 
----------------------------------  -----  -------------  -------------  -------------- 
 (Loss) / profit for the period                    (608)            102            (20) 
----------------------------------  -----  -------------  -------------  -------------- 
 
 Basic and diluted earnings 
  per share for profit/(loss) 
  attributable to the ordinary 
  equity holders of the Company: 
   From continuing operations                    (0.36p)          0.06p           0.00p 
----------------------------------  -----  -------------  -------------  -------------- 
 Total (loss) / profit per 
  share                               5          (0.36p)          0.06p           0.00p 
----------------------------------  -----  -------------  -------------  -------------- 
 
 
 

Consolidated statement of comprehensive income

For the six months ended 31 March 2021

 
                                         Unaudited      Unaudited         Audited 
                                        six months     six months         year to 
                                       to 31 March    to 31 March    30 September 
                                              2021           2020            2020 
                                           GBP'000        GBP'000         GBP'000 
 (Loss) / profit for the period              (608)            102            (20) 
 
 Other comprehensive income: 
 Currency translation differences            (163)              4            (38) 
-----------------------------------  ------------- 
 Other comprehensive income for 
  the period                                 (163)              4            (38) 
 
 Total comprehensive (loss) / 
  profit for the period                      (771)            106            (58) 
-----------------------------------  -------------  -------------  -------------- 
 
 Total comprehensive profit / 
  (loss) is attributable to: 
    Owners of Aukett Swanke Group 
     Plc                                     (762)            100            (33) 
    Non-controlling interests                  (9)              6            (25) 
-----------------------------------  -------------  -------------  -------------- 
 Total comprehensive (loss) / 
  profit for the period                      (771)            106            (58) 
-----------------------------------  -------------  -------------  -------------- 
 

Consolidated statement of financial position

At 31 March 2021

 
                                   Note   Unaudited   Unaudited      Audited 
                                              at 31       at 31        at 30 
                                              March       March    September 
                                               2021        2020         2020 
                                            GBP'000     GBP'000      GBP'000 
 Non current assets 
 Goodwill                                     2,349       2,403        2,392 
 Other intangible assets                        593         714          653 
 Property, plant and equipment                  205         314          272 
 Right-of-use assets                          2,737       2,882        2,929 
 Investment in associate and 
  joint ventures                                779       1,009        1,244 
 Deferred tax                                   259         155          214 
--------------------------------  -----  ----------  ----------  ----------- 
 Total non current assets                     6,922       7,477        7,704 
 
 Current assets 
 Trade and other receivables                  4,303       5,157        3,527 
 Contract assets                                911         716          628 
 Current tax                                    362           -            - 
 Cash at bank and in hand           7           591         315          992 
--------------------------------  -----  ----------  ----------  ----------- 
 Total current assets                         6,167       6,188        5,147 
 
 Total assets                                13,089      13,665       12,851 
 
 Current liabilities 
 Trade and other payables                   (4,249)     (3,194)      (3,333) 
 Contract liabilities                         (797)     (1,012)        (606) 
 Borrowings                         7         (390)       (326)        (155) 
 Lease liabilities                            (539)       (537)        (539) 
 Total current liabilities                  (5,975)     (5,069)      (4,633) 
 
 Non current liabilities 
 Lease liabilities                          (2,578)     (3,099)      (2,805) 
 Deferred tax                                  (44)        (48)         (47) 
 Provisions                                   (889)       (865)        (992) 
 Total non current liabilities              (3,511)     (4,012)      (3,844) 
 
 Total liabilities                          (9,486)     (9,081)      (8,477) 
 
 Net assets                                   3,603       4,584        4,374 
--------------------------------  -----  ----------  ----------  ----------- 
 
 
 Capital and reserves 
 Share capital                                1,652       1,652        1,652 
 Merger reserve                               1,176       1,176        1,176 
 Foreign currency translation 
  reserve                                     (175)          26         (16) 
 Retained earnings                            (562)          97           41 
 Other distributable reserve                  1,494       1,494        1,494 
--------------------------------  -----  ----------  ----------  ----------- 
 Total equity attributable 
  to 
  equity holders of the Company               3,585       4,445        4,347 
--------------------------------  -----  ----------  ----------  ----------- 
 
 Non-controlling interests                       18         139           27 
--------------------------------  -----  ---------- 
 Total equity                                 3,603       4,584        4,374 
--------------------------------  -----  ----------  ----------  ----------- 
 

Consolidated statement of cash flows

For the six months ended 31 March 2021

 
                                     Note      Unaudited      Unaudited         Audited 
                                              six months     six months         year to 
                                             to 31 March    to 31 March    30 September 
                                                    2021           2020            2020 
                                                 GBP'000        GBP'000         GBP'000 
 Cash flows from operating 
  activities 
 Cash (expended by) / generated 
  from operations                     6            (659)          (836)             151 
 Interest paid                                      (49)           (15)             (9) 
 Income taxes credits (paid) 
  / received                                         (1)            218             218 
----------------------------------  -----  -------------  -------------  -------------- 
 Net cash (outflow) / inflow 
  from operating activities                        (709)          (633)             360 
 
 Cash flows from investing 
  activities 
 Purchase of property, plant 
  and equipment                                      (2)          (214)           (245) 
 Sale of property, plant and 
  equipment                                            -              -              16 
 Payment for acquisition of 
  subsidiary                                       (100)              -               - 
 Dividends received                                  472             86             211 
----------------------------------  -----  -------------  -------------  -------------- 
 Net cash received / (paid) 
  in investing activities                            370          (128)            (18) 
 
 Net cash (outflow) / inflow 
  before financing activities                      (339)          (761)             342 
 
 Cash flows from financing 
  activities 
 Payments of lease liabilities                 (226)               (34)           (314) 
 Repayment of bank loans                        (97)              (123)           (154) 
 Net cash outflow from financing 
  activities                                       (323)          (157)           (468) 
 
 Net change in cash and cash 
  equivalents                                      (662)          (918)           (126) 
 
 Cash and cash equivalents 
  at start of period                                 992          1,145           1,145 
 Currency translation differences               (71)               (44)            (27) 
----------------------------------  -----  -------------  -------------  -------------- 
 Cash and cash equivalents 
  at end of period                    7              259            183             992 
----------------------------------  -----  -------------  -------------  -------------- 
 
 
 Cash and cash equivalents are comprised 
  of: 
 Cash at bank and in hand                     591     315   992 
 Secured bank overdrafts                    (332)   (132)     - 
 Cash and cash equivalents at end 
  of year                                     259     183   992 
-----------------------------------------  ------  ------  ---- 
 

Consolidated statement of changes in equity

For the six months ended 31 March 2021

 
                     Share        Foreign    Retained           Other     Merger      Total             Non      Total 
                   capital       currency    earnings   distributable    reserve                controlling     equity 
                              translation                     reserve                             interests 
                                  reserve 
                   GBP'000        GBP'000     GBP'000         GBP'000    GBP'000    GBP'000         GBP'000    GBP'000 
---------------  ---------  -------------  ----------  --------------  ---------  ---------  --------------  --------- 
 At 1 October 
  2020               1,652           (16)          41           1,494      1,176      4,347              27      4,374 
 
 Loss for the 
  period                 -              -       (603)               -          -      (603)             (5)      (608) 
 Other 
  comprehensive 
  income                 -          (159)           -               -          -      (159)             (4)      (163) 
---------------  ---------  -------------  ----------  --------------  ---------  ---------  --------------  --------- 
 Total 
  comprehensive 
  loss                   -          (159)     (603)                 -          -      (762)             (9)      (771) 
 
 At 31 March 
  2021               1,652          (175)       (562)           1,494      1,176      3,585              18      3,603 
---------------  ---------  -------------  ----------  --------------  ---------  ---------  --------------  --------- 
 

For the six months ended 31 March 2020

 
                     Share        Foreign    Retained           Other     Merger      Total             Non      Total 
                   capital       currency    earnings   distributable    reserve                controlling     equity 
                              translation                     reserve                             interests 
                                  reserve 
                   GBP'000        GBP'000     GBP'000         GBP'000    GBP'000    GBP'000         GBP'000    GBP'000 
---------------  ---------  -------------  ----------  --------------  ---------  ---------  --------------  --------- 
 Balance at 30 
  September 
  2019 
  as originally 
  presented          1,652             22          37           1,494      1,176      4,381             133      4,514 
 
 Effect of 
  adoption 
  of IFRS16 *            -              -        (36)               -          -       (36)               -       (36) 
 
 Restated total 
  equity at 1 
  October 
  2019               1,652             22           1           1,494      1,176      4,345             133      4,478 
 
 Profit for the 
  period                 -              -          96               -          -         96               6        102 
 Other 
  comprehensive 
  income                 -              4           -               -          -          4               -          4 
---------------  ---------  -------------  ----------  --------------  ---------  ---------  --------------  --------- 
 Total 
  comprehensive 
  profit                 -              4      96                   -          -        100               6        106 
 
 At 31 March 
  2020               1,652             26          97           1,494      1,176      4,445             139      4,584 
---------------  ---------  -------------  ----------  --------------  ---------  ---------  --------------  --------- 
 

Consolidated statement of changes in equity (continued)

For the year ended 30 September 2020

 
                     Share        Foreign    Retained           Other     Merger      Total             Non      Total 
                   capital       currency    earnings   distributable    reserve                controlling     equity 
                              translation                     reserve                             interests 
                                  reserve 
                   GBP'000        GBP'000     GBP'000         GBP'000    GBP'000    GBP'000         GBP'000    GBP'000 
---------------  ---------  -------------  ----------  --------------  ---------  ---------  --------------  --------- 
 Balance at 30 
  September 
  2019 
  as originally 
  presented          1,652             22          37           1,494      1,176      4,381             133      4,514 
 
 Effect of 
  adoption 
  of IFRS16 *            -              -         (1)               -          -        (1)               -        (1) 
 
 Restated total 
  equity at 1 
  October 
  2019               1,652             22          36           1,494      1,176      4,380             133      4,513 
 
 Profit for the 
  period                 -              -           5               -          -          5            (25)       (20) 
 Acquisition of 
  minority 
  interest               -              -           -               -          -          -            (81)       (81) 
 Other 
  comprehensive 
  income                 -           (38)           -               -          -       (38)               -       (38) 
---------------  ---------  -------------  ----------  --------------  ---------  ---------  --------------  --------- 
 Total 
  comprehensive 
  profit                 -           (38)       5                   -          -       (33)           (106)      (139) 
 
 At 30 
  September 
  2020               1,652           (16)          41           1,494      1,176      4,347              27      4,374 
---------------  ---------  -------------  ----------  --------------  ---------  ---------  --------------  --------- 
 

* Effect of adoption of IFRS16: The restatement of retained earnings on adoption of IFRS16 being (GBP36k) per the interim statements as at 31 March 2020 was revised down to (GBP1k) on completion of the 30 September 2020 audited financial statements. This was due to a change in the assumption of the Groups' incremental borrowing rate at the date of initial application.

Notes to the Interim Report

   1          Basis of preparation 

The financial information presented in this Interim Report has been prepared in accordance with the recognition and measurement principles of international accounting standards in conformity with the requirements of the Companies Act 2006 that are expected to be applicable to the financial statements for the year ending 30 September 2021 and on the basis of the accounting policies expected to be used in those financial statements.

   2          New accounting standards, amendments and interpretations applied 

A number of new or amended standards and interpretations to existing standards became applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these standards.

   3          Operating segments 

The Group comprises a single business segment and three separately reportable geographical segments (together with a Group costs segment). Geographical segments are based on the location of the operation undertaking each project. Turkey (and Russia in the comparative periods) are included within Continental Europe together with Germany and the Czech Republic.

 
 Segment revenue           Unaudited      Unaudited         Audited 
                          six months     six months         year to 
                         to 31 March    to 31 March    30 September 
                                2021           2020            2020 
                             GBP'000        GBP'000         GBP'000 
 United Kingdom                3,441          4,093           7,106 
 Middle East                   1,581          3,135           4,823 
 Continental Europe              258            147             237 
---------------------  ------------- 
 Total                         5,280          7,375          12,166 
---------------------  -------------  -------------  -------------- 
 
 
 
 Segment revenue less sub consultant        Unaudited      Unaudited         Audited 
  costs                                    six months     six months         year to 
                                          to 31 March    to 31 March    30 September 
                                                 2021           2020            2020 
                                              GBP'000        GBP'000         GBP'000 
 United Kingdom                                 2,591          4,086           6,990 
 Middle East                                    1,352          2,627           4,122 
 Continental Europe                               196            147             224 
--------------------------------------  ------------- 
 Total                                          4,139          6,860          11,336 
--------------------------------------  -------------  -------------  -------------- 
 
 
 Segment result before tax        Unaudited      Unaudited         Audited 
                                 six months     six months         year to 
                                to 31 March    to 31 March    30 September 
                                       2021           2020            2020 
                                    GBP'000        GBP'000         GBP'000 
 
 United Kingdom                       (837)             41           (282) 
 Middle East                          (280)          (165)           (472) 
 Continental Europe                     121            179             511 
 Group costs                           (21)             81        197 
----------------------------  -------------  -------------  -------------- 
 Total (loss)/profit                (1,017)            136            (46) 
----------------------------  -------------  -------------  -------------- 
 
 
 
 Segment result before tax             Unaudited      Unaudited         Audited 
  (before reallocation of group       six months     six months         year to 
  management charges)                to 31 March    to 31 March    30 September 
                                            2021           2020            2020 
                                         GBP'000        GBP'000         GBP'000 
 
 United Kingdom                            (567)            311             214 
 Middle East                                (79)            103            (23) 
 Continental Europe                          227            247             657 
 Group costs                               (598)          (525)           (894) 
---------------------------------  -------------  -------------  -------------- 
 Total (loss)/profit                     (1,017)            136            (46) 
---------------------------------  -------------  -------------  -------------- 
 
   4          Other operating income 
 
                                        Unaudited      Unaudited         Audited 
                                       six months     six months         year to 
                                      to 31 March    to 31 March    30 September 
                                             2021           2020            2020 
                                          GBP'000        GBP'000         GBP'000 
 Property rental income                        79             78             148 
 Management charges to associate 
  and joint ventures                           65             54             122 
 Government grants (UK furlough 
  scheme)                                      42              -             158 
 Licence fee income                             2              1               - 
 Other sundry income                            2              9              27 
 Total other operating income                 190            142             455 
----------------------------------  -------------  -------------  -------------- 
 
   5          Earnings per share 

The calculations of basic and diluted earnings per share are based on the following data:

 
 Earnings                              Unaudited      Unaudited         Audited 
                                      six months     six months         year to 
                                     to 31 March    to 31 March    30 September 
                                            2021           2020            2020 
                                         GBP'000        GBP'000         GBP'000 
 (Loss) / profit for the period            (603)             96               5 
---------------------------------  -------------  -------------  -------------- 
 
 
 Number of shares                         Unaudited      Unaudited         Audited 
                                         six months     six months         year to 
                                        to 31 March    to 31 March    30 September 
                                               2021           2020            2020 
                                               '000           '000            '000 
 Weighted average number of shares          165,214        165,214         165,214 
 Effect of dilutive options                       -              -               - 
-----------------------------------   -------------  -------------  -------------- 
 Diluted weighted average number 
  of shares                                 165,214        165,214         165,214 
------------------------------------  -------------  -------------  -------------- 
 
   6          Reconciliation of profit before tax to net cash from operations 
 
                                           Unaudited      Unaudited         Audited 
                                          six months     six months         year to 
                                         to 31 March    to 31 March    30 September 
                                                2021           2020            2020 
                                             GBP'000        GBP'000         GBP'000 
 (Loss) / profit before tax - 
  continuing operations                      (1,017)            136            (46) 
 Finance costs                                    49             78             112 
 Share of results of associate 
  and joint ventures                            (71)          (106)           (442) 
 Intangible amortisation                          32             40              79 
 Depreciation                                     63             24              74 
 Amortisation of right-of-use 
  assets                                         192            135             340 
 Profit on disposal of property, 
  plant and equipment                            (1)            (2)               - 
 (Increase) / decrease in trade 
  and other receivables                        (976)          (500)             989 
 Increase / (decrease) in trade 
  and other payables                           1,207          (605)           (794) 
 Change in provisions                           (52)           (38)            (79) 
 Unrealised foreign exchange 
  differences                                   (85)              2            (82) 
-------------------------------------  -------------  -------------  -------------- 
 Net cash (expended by) / generated 
  from operations                              (659)          (836)             151 
-------------------------------------  -------------  -------------  -------------- 
 
   7          Analysis of net funds 
 
                                  Unaudited      Unaudited         Audited 
                                at 31 March    at 31 March              at 
                                       2021           2020    30 September 
                                    GBP'000        GBP'000            2020 
                                                                   GBP'000 
 Cash at bank and in hand               591            315             992 
 Secured bank overdrafts              (332)          (132)               - 
----------------------------  -------------  -------------  -------------- 
 Cash and cash equivalents              259            183             992 
 
 Secured bank loan                     (58)          (194)           (155) 
----------------------------  ------------- 
 Net funds/(debt)                       201           (11)             837 
----------------------------  -------------  -------------  -------------- 
 
   8          Status of Interim Report 

The Interim Report covers the six months ended 31 March 2021 and was approved by the Board of Directors on 28 June 2021. The Interim Report is unaudited.

The interim condensed set of consolidated financial statements in the Interim Report are not statutory accounts as defined by Section 434 of the Companies Act 2006.

Comparative figures for the year ended 30 September 2020 have been extracted from the statutory accounts of the Group for that period.

The statutory accounts for the year ended 30 September 2020 have been reported on by the Group's auditors and delivered to the Registrar of Companies. The audit report thereon was unqualified, did not include references to matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not contain a statement under Section 498 of the Companies Act 2006. The audit report did draw attention to the Directors' assessment of going concern, indicating that a material uncertainty exists that may cast significant doubt on the Group's and parent company's ability to continue as a going concern. The audit report was not modified in respect of this matter.

   9          Further information 

An electronic version of the Interim Report will be available on the Group's website (www.aukettswankeplc.com).

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.

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END

IR QVLFLFQLZBBX

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June 29, 2021 02:00 ET (06:00 GMT)

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