TIDMEKT
RNS Number : 3205R
Elektron Technology PLC
21 September 2017
21 September 2017
Elektron Technology plc
Half year results for the six months ended 31 July 2017
Elektron Technology plc (AIM: EKT, "Elektron" or the "Group"),
the global technology group, has published its results for the six
months ended 31 July 2017 ("H1 FY18" or the "Period").
Highlights
Performance *
-- Revenue: GBP15.3m (+3%) (H1 FY17: GBP14.9m)
-- Operating profit from businesses excluding Checkit: GBP2.4m (+200%) (H1 FY17: GBP0.8m)
-- Planned Checkit losses: GBP2.3m (H1 FY17: GBP1.8m), increased
due to higher amortisation charges
-- Operating profit (including Checkit): GBP0.1m (H1 FY17:loss GBP1.0m)
-- Sale of Titman Tip Tools and Digitron for a total of GBP0.8m cash
-- Closure of Torquay site completed on budget and as scheduled
-- Net cash balances: GBP2.0m (31 July 2016: GBP0.5m; 31 January 2017: GBP1.0m)
-- Positive outlook for H2, with a strengthened Bulgin order book
*Figures for continuing operations, except where otherwise
stated
John Wilson, Chief Executive of Elektron, said:
"It is pleasing to report that the Group has returned to
profitability in the first half of the year driven by the growth in
orders and margins in Bulgin. Checkit recurring revenues are
growing and the Group has been successful in securing new accounts
including with a major high street retailer. We have also continued
to realise cash from our disposals of non-core businesses. With a
strengthened Bulgin order book we expect an improved performance in
the second half of the year over the first six months"
For further information:
Elektron Technology plc +44 (0) 1223 371
www.elektron-technology.com 000
John Wilson - Chief Executive Officer
Andy Weatherstone - Chief Financial
Officer & Company Secretary
+44 (0)20 7220
finnCap (Nominated Adviser & Broker) 0500
Ed Frisby / Scott Mathieson - Corporate
Finance
Abigail Wayne - Corporate Broking
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Notes to Editors
Elektron conceives designs and markets innovative engineered
products and services for businesses that connect, monitor and
control. We have a multi skilled team of engineers, software and
product line specialists based in Cambridge focused on the
opportunities created by global trends in the following areas:
- Demand for ubiquitous power and data: Bulgin
- New waves of "aware" business applications: Checkit
- The effect of ageing on sight: Elektron Eye Technology
- Growth in high precision manufacture: Queensgate
- Quality testing and inspection instruments: Sheen
Chairman and Chief Executive's Statement
Overview
The results for the first six months demonstrate the Group's
progress. Checkit gained traction in its market with notable key
wins, Bulgin delivered organic sales growth with class-leading
margins and IMC losses significantly reduced, following the closure
of Torquay. Group EBITDA was GBP1.6m (H1 FY17: GBP0.1m). We
delivered an operating profit of GBP0.1m (H1 FY17: loss GBP1.0m)
from an increase in revenues from continuing operations of 3% to
GBP15.3m (H1 FY17: GBP14.9m). We raised GBP0.8m through business
disposals and invested GBP1.3m. The Group improved its net cash
position to GBP2.0m from GBP1.0m at 31 January 2017.
Bulgin
The first half of FY18 saw sales of GBP12.5m, 7% higher than
prior year (H1 FY17: GBP11.7m), and record order intake levels,
over 20% up on prior year. This was mainly due to significant
initiatives with Bulgin's largest distributors and whilst orders
are expected to normalise through H2, the Board expects revenues to
remain ahead of last year.
Bulgin manufactures niche, ruggedised products used in harsh
environments where a high level of ingress protection is required.
It operates in a low growth, relatively cost-insensitive market but
is subject to distributor stocking and destocking cycles. Market
launches of substantial newly developed products, combined with
iterative product development and bespoke solutions are key to
Bulgin's strategic offering. Initiatives during the Period
included:
-- gap analysis programmes - utilising data analytics to ensure
optimal inventory holding from our largest distributors across the
broadest range of products possible;
-- inventory and distributor consolidation programmes;
-- "end of life" and "last time buy" programmes for low margin products;
-- stocking orders received from the distribution channel for Bulgin's "M-Series" connectors;
-- significantly improved web and marketing presence, including
publication of 3D CAD models for high running products;
-- forward order schedules from Bulgin's large OEM accounts, improving visibility.
Bulgin has again achieved underlying margin improvement through
price increases, business simplification and an improved product
mix. H1 gross margin of 46% was almost 6% higher than prior year.
Bulgin's net margin, on a stand-alone basis, is now in excess of
20%.
Bulgin's fibre optic new product developments are on track for
launch during the first quarter of the next financial year, which,
as previously announced, will significantly increase its accessible
market.
With Bulgin's distribution channel network close to optimisation
and distributor inventory holdings on all six inhabited continents,
the main management focus is transitioning to ensure continued
growth in the number of end customer users which is expected to
grow sales further. This will be achieved through increased joint
distributor sales visits, continuous improvement of our marketing
campaigns and targeting further new product introductions in
growing markets.
IMC portfolio
During the Period the Instrumentation, Monitoring and Control
("IMC") portfolio saw the two disposals of non-core businesses,
namely Digitron and Titman. Gross cash proceeds received totalled
GBP0.8m.
The remaining businesses in the segment saw aggregate sales
decline to GBP2.6m (H1 FY17: GBP3.1m). The successful closure of
the main Torquay facility, the transfer to West Molesey and the
management focus on reduction of overhead cost resulted in a
significant reduction in losses for this business segment to
GBP0.6m (H1 FY17: GBP1.0m). Sheen and Queensgate saw practically
static sales whilst Elektron Eye Technology ("EET") saw a decline
in sales as a result of distributor overstocking. There was also a
planned reduction in certain run-off businesses.
Management changes were made at EET following a poor start to H1
and a review of the business is taking place. The review has led to
the business deciding to terminate a significant exclusive
distributorship which will adversely affect sales in the second
half of the current year but will lead to greater opportunity in
future years as the previous arrangement restricted sales. New
management is working to expand the distribution channel globally.
The Group completed the purchase of related intellectual property
at a cost of GBP0.2m, giving the Group greater control over
development of future EET products.
The segment is being managed with a view to improving revenue,
eliminating losses and generating cash.
Checkit
In the six months to 31 July 2017, Checkit revenues of GBP0.2m
were up 58%, albeit from a low base. Development losses of GBP2.3m
(H1 FY17: GBP1.8m) were in line with management expectations and
include a scheduled increase in amortisation charges of GBP0.6m to
GBP0.9m. Cash expenditure was GBP1.7m which includes GBP0.3m of
capitalised development costs. As previously announced the Board's
policy in the current year is to utilise cash flow from elsewhere
in the Group to fund Checkit's development.
Checkit is a valuable tool that enables organisations to manage
diverse and hard to manage teams. It is used by organisations to
transform the management of routine activities across their
workforces. It does this by replacing repeated manual measurements
with wireless sensors, paper checklists with easy to use apps and
laborious reporting with digital records and comprehensive
dashboards. The result is consistency, adherence to correct
protocol, reduced risk and improved profitability.
Unlike other workflow management systems Checkit is designed to
be simple, configurable by the user and very low cost. The system
is affordable to the smallest business yet scalable to cope with
the demands of the largest companies.
Checkit's initial focus has been the food industry, which is a
very large market. According to one report, total UK food service
sales are expected to reach GBP56 billion per annum by the end of
2019. In that market almost 100% of processes are currently tracked
on paper. Checkit is at the forefront of the digitisation that is
transforming processes giving customers:
-- extreme ease of use and adoption;
-- cloud and internet technology to remove IT overhead and complexity;
-- fit for purpose functionality based on close working with
industry bodies and inspectors;
-- flexible, business-user driven checklist building that allows
almost any check based application to be built in minutes;
-- scalability, allowing solutions to grow and flex with sizes
ranging from small independents to large chains.
Customers further benefit from our straightforward hardware-and
Software-as-a-Service (SaaS) commercial model that cuts risk and
uncertainty of purchase.
One driver of adoption in this market is food safety. This is
increasingly being driven by consumer purchasing patterns based on
inspection hygiene ratings, and the realisation that paper systems
are no longer fit for purpose. Additional benefits include reduced
insurance costs, reduced labour costs and improved early warning of
compliance or process issues.
Experience has already shown that Checkit has many applications
beyond food safety. It represents a new type of tool to deliver
business improvements in two important ways:
-- It combines software with hardware that senses and reacts to
the environment in an integrated way to deliver a sensing business
application; and
-- Its checklist building capability represents a deceptively
simple but powerful way to rapidly build and deploy business
applications to employees. Checklists are immensely powerful in
guiding user actions and capturing feedback. Checkit enables the
simple creation and customisation of checklists which can then be
deployed to different users, groups, sites and schedules with a few
mouse clicks. This is transformational in terms of cost and speed
when compared to a traditional IT project requiring new application
development or the customisation of packaged applications.
Checkit is already used in health and safety compliance,
supplier delivery management and enforcement of brand guidelines in
service organisations as well as safeguarding production and
storage of high value products in pharma and healthcare. As the
business develops we anticipate these non-food applications to
continue to grow in importance.
Since the trading statement issued on 10 August 2017, Checkit
has continued to build recurring revenue streams and has announced
that it has won a significant contract with a major retailer which
will see Checkit deployed across more than 70 locations to
automate, guide and enforce compliance and management processes in
the customer's stores and distribution centres. Once installed,
Checkit's annual recurring revenues will be in excess of
GBP0.6m.
Additionally we have deployed further new sites with a global
facilities management provider and won business from a number of
small but growing food service chains. Discussions continue with a
number of other potentially large users.
Outlook
The second half of the year has started in line with the Board's
expectations and, with a strengthened Bulgin order book and the
continuing roll out of Checkit, the Board expects H2 to deliver
improved trading performance compared to H1.
Keith Daley John Wilson
Chairman Chief Executive
21 September 2017
Consolidated statement of comprehensive income
unaudited interim results to 31 July 2017
Restated*
Unaudited Unaudited Restated*
Half Half Audited
year year Year
to to to
31 July 31 July 31 January
2017 2016 2017
GBPm GBPm GBPm
--------------------------------------------- --------- ---------- -----------
Revenue (see Note 2) 15.3 14.9 30.7
Cost of sales (8.4) (9.2) (18.5)
--------------------------------------------- --------- ---------- -----------
Gross profit 6.9 5.7 12.2
Operating expenses
--------------------------------------------- --------- ---------- -----------
Net operating expenses (excluding
non-recurring or special items) (6.8) (6.7) (13.1)
Operating profit/(loss) before non-recurring
or special items (see Note 2) 0.1 (1.0) (0.9)
Non-recurring or special items (see
Note 3) - - (0.8)
--------------------------------------------- --------- ---------- -----------
Total operating expenses (6.8) (6.7) (13.9)
--------------------------------------------- --------- ---------- -----------
Operating profit/(loss) (see Note
2) 0.1 (1.0) (1.7)
Finance income 0.1 - -
--------------------------------------------- --------- ---------- -----------
Profit/(loss) before taxation 0.2 (1.0) (1.7)
Taxation (see Note 4) (0.1) - 0.7
--------------------------------------------- --------- ---------- -----------
Profit/(loss) from continuing operations 0.1 (1.0) (1.0)
Profit from discontinued operations
(see Note 5) - 0.9 0.9
--------------------------------------------- --------- ---------- -----------
Profit/(loss) for the period attributable
to equity shareholders 0.1 (0.1) (0.1)
--------------------------------------------- --------- ---------- -----------
Other comprehensive expense
Currency translation differences on
foreign currency net investments (0.8) - 0.4
--------------------------------------------- --------- ---------- -----------
Total other comprehensive (expense)
/ income (0.8) - 0.4
--------------------------------------------- --------- ---------- -----------
Total comprehensive income/ (expense)
for the period attributable
to equity shareholders (0.7) (0.1) 0.3
--------------------------------------------- --------- ---------- -----------
Earnings/ (loss) per share from continuing
operations (see Note 6)
- Basic and diluted EPS 0.1p (0.6p) (0.6p)
- Adjusted and diluted adjusted EPS 0.1p (0.6p) (0.6p)
Earnings per share from continuing
and discontinued operations (see Note
6)
- Basic and diluted EPS 0.1p (0.6p) (0.2p)
- Adjusted and diluted adjusted EPS 0.1p (0.6p) (0.2p)
--------------------------------------------- --------- ---------- -----------
The accompanying notes form an integral part of this
consolidated interim financial information.
* see note 5.
Consolidated balance sheet
unaudited at 31 July 2017
Unaudited Unaudited Audited
31 July 31 July 31 January
2017 2016 2017
GBPm GBPm GBPm
-------------------------------------- --------- --------- -----------
Assets
Non-current assets
Capitalised R&D 3.3 4.6 3.9
Other intangible assets 0.5 0.7 0.4
Property, plant and equipment 1.9 2.1 2.0
-------------------------------------- --------- --------- -----------
Total non-current assets 5.7 7.4 6.3
-------------------------------------- --------- --------- -----------
Current assets
Inventories 4.6 5.5 4.8
Trade and other receivables 4.4 5.5 7.6
Asset held for resale - - 0.3
Deferred tax asset 0.9 - 0.9
Cash and cash equivalents 2.1 1.0 2.5
-------------------------------------- --------- --------- -----------
Total current assets 12.0 12.0 16.1
-------------------------------------- --------- --------- -----------
Total assets 17.7 19.4 22.4
-------------------------------------- --------- --------- -----------
Current liabilities
Trade and other payables 4.7 6.6 7.0
Borrowings 0.1 0.5 1.5
Provisions 0.6 - 1.0
Current tax payable 0.3 0.2 0.2
-------------------------------------- --------- --------- -----------
Total current liabilities 5.7 7.3 9.7
-------------------------------------- --------- --------- -----------
Non-current liabilities
Long-term provisions 0.5 0.5 0.5
-------------------------------------- --------- --------- -----------
Total non-current liabilities 0.5 0.5 0.5
-------------------------------------- --------- --------- -----------
Total liabilities 6.2 7.8 10.2
-------------------------------------- --------- --------- -----------
Net assets 11.5 11.6 12.2
-------------------------------------- --------- --------- -----------
Equity attributable to equity holders
of the parent
Called-up share capital 9.3 9.3 9.3
Share premium 5.4 5.4 5.4
Merger reserve 1.1 1.1 1.1
Capital redemption reserve 0.2 0.2 0.2
Own shares (1.9) (2.6) (1.9)
Other reserves 0.8 0.8 0.8
Translation reserve (1.2) (0.8) (0.4)
Retained earnings (2.2) (1.8) (2.3)
-------------------------------------- --------- --------- -----------
Total equity 11.5 11.6 12.2
-------------------------------------- --------- --------- -----------
The accompanying notes form an integral part of this
consolidated interim financial information.
Consolidated statement of changes in equity
unaudited interim results to 31 July 2017
Capital
Share Share Merger redemption Own Other Translation Retained
capital premium reserve reserve shares reserves reserve earnings Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
At 1 February 2016 9.3 5.4 1.1 0.2 (3.5) 0.8 (0.8) (0.9) 11.6
Loss for the period - - - - - - - (0.1) (0.1)
Sale/release of own
shares - - - - 0.9 - - (0.8) 0.1
Total comprehensive
(expense)/income
for the period - - - - 0.9 - - (0.9) -
At 31 July 2016 9.3 5.4 1.1 0.2 (2.6) 0.8 (0.8) (1.8) 11.6
Loss for the period - - - - - - - (0.5) (0.5)
Sale/release of own
shares - - - - 0.7 - - - 0.7
Currency translation
differences on foreign
currency net
investments - - - - - - 0.4 - 0.4
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
Total comprehensive
income for the period - - - - 0.7 - 0.4 (0.5) 0.6
At 1 February 2017 9.3 5.4 1.1 0.2 (1.9) 0.8 (0.4) (2.3) 12.2
Profit for the period - - - - - - - 0.1 0.1
Currency translation
differences on foreign
currency net
investments - - - - - - (0.8) - (0.8)
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
Total comprehensive
(expense)/income
for the period - - - - - - (0.8) 0.1 (0.7)
At 31 July 2017 9.3 5.4 1.1 0.2 (1.9) 0.8 (1.2) (2.2) 11.5
------------------------ -------- -------- -------- ----------- ------- --------- ----------- --------- -----
The own shares are held by the Elektron Technology 2012 Employee
Benefit Trust.
The accompanying notes form an integral part of this
consolidated interim financial information.
Consolidated statement of cash flows
unaudited interim results to 31 July 2017
Restated
Unaudited Restated
Half Audited
Unaudited year Year
Half year to to to
31 July 31 July 31 January
2017 2016 2017
GBPm GBPm GBPm
--------------------------------- ------------- ---------- -----------
Net cash flows from operating
activities
Profit/(loss) before taxation
- From continuing operations 0.1 (1.0) (1.7)
- From discontinued operations - 0.9 0.9
Adjustments for:
Depreciation charge 0.5 0.3 0.6
Non-recurring or other special
items
- Continuing (see Note 3) - - 0.8
Amortisation of capitalised
R&D and other intangibles 1.0 0.8 2.6
Gain on disposal of discontinued
operations - (0.7) (0.7)
Operating cash flows before
working capital changes
and non-recurring or special
items 1.6 0.3 2.5
Decrease/(increase) in trade
and other receivables 2.6 1.3 (0.7)
Increase in inventories (0.3) (0.1) (0.1)
(Decrease)/increase in trade
payables (2.1) (0.2) 0.1
Payments for non-recurring
and other special items (0.4) (0.3) -
Cash generated by operations 1.4 1.0 1.8
Tax paid - - (0.2)
Interest received 0.1 - -
--------------------------------- ------------- ---------- -----------
Net cash generated from
operating activities 1.5 1.0 1.6
--------------------------------- ------------- ---------- -----------
Investing activities
Purchase of property, plant
and equipment (0.7) (0.1) (0.3)
Purchase of intellectual
property (0.2) - -
Capitalisation of R&D costs (0.4) (0.9) (1.6)
Disposal of business 0.8 2.0 2.6
--------------------------------- ------------- ---------- -----------
Net cash generated /(used
in)/from investing activities (0.5) 1.0 0.7
--------------------------------- ------------- ---------- -----------
Cash flows from financing
activities
Decrease in bank loans (1.4) (1.4) (0.7)
Payment of hire purchase
and finance liabilities - (0.3) -
Proceeds from sale of own
shares - 0.1 0.3
Net cash used in financing
activities (1.4) (1.6) (0.4)
--------------------------------- ------------- ---------- -----------
Net (decrease)/increase
in cash and cash equivalents (0.4) 0.4 1.9
Cash and cash equivalents
at the beginning of the
period 2.5 0.6 0.6
--------------------------------- ------------- ---------- -----------
Cash and cash equivalents
at the end of the period 2.1 1.0 2.5
--------------------------------- ------------- ---------- -----------
The accompanying notes form an integral part of this
consolidated interim financial information.
Notes to the unaudited interim results
to 31 July 2017
1. Accounting policies
The interim financial information has been prepared on the basis
of International Financial Reporting Standards (IFRS) as adopted by
the European Union. Full details of accounting policies are
included in the Annual Report for the year ended 31 January 2017.
Fixed annual charges are apportioned to the interim period on the
basis of time elapsed. Other expenses are accrued in accordance
with the same principles used in the preparation of the annual
accounts.
The Group has not applied IAS 34 "Interim Financial Reporting",
which is not mandatory for UK groups, in the preparation of these
interim financial statements.
2. Segmental reporting - continuing operations
Revenues
Half Half
year year Year
to to to
31 July 31 July 31 January
2017 2016 2017
Geographic GBPm GBPm GBPm
--------------------------------------- -------- -------- -----------
United Kingdom 5.5 4.1 9.0
Rest of Europe, Middle East and Africa 4.6 5.0 9.5
Asia Pacific and China 1.5 1.9 3.7
Americas 3.7 3.9 8.5
--------------------------------------- -------- -------- -----------
Total 15.3 14.9 30.7
--------------------------------------- -------- -------- -----------
Half Half
year year Year
to to to
31 July 31 July 31 January
2017 2016 2017
Product segment GBPm GBPm GBPm
---------------------------------------- -------- -------- -----------
Bulgin 12.5 11.7 24.1
Instrumentation, Monitoring and Control 2.6 3.1 6.3
---------------------------------------- -------- -------- -----------
Total Bulgin and IMC 15.1 14.8 30.4
Checkit 0.2 0.1 0.3
---------------------------------------- -------- -------- -----------
Total 15.3 14.9 30.7
---------------------------------------- -------- -------- -----------
Operating profit/(loss) before non-recurring or special
items
Half Half
year year Year
to to to
31 July 31 July 31 January
2017 2016 2017
Product segment GBPm GBPm GBPm
---------------------------------------- -------- -------- -----------
Bulgin 3.0 1.8 3.7
Instrumentation, Monitoring and Control (0.6) (1.0) (1.1)
---------------------------------------- -------- -------- -----------
Total Bulgin and IMC 2.4 0.8 2.6
Checkit (2.3) (1.8) (3.5)
---------------------------------------- -------- -------- -----------
Total 0.1 (1.0) (0.9)
---------------------------------------- -------- -------- -----------
Operating profit/(loss)
Half Half
year year Year
to to to
31 July 31 July 31 January
2017 2016 2017
Product segment GBPm GBPm GBPm
---------------------------------------- -------- -------- -----------
Bulgin 3.0 1.8 3.3
Instrumentation, Monitoring and Control (0.6) (1.0) (1.5)
---------------------------------------- -------- -------- -----------
Total Bulgin and IMC 2.4 0.8 1.8
Checkit (2.3) (1.8) (3.5)
---------------------------------------- -------- -------- -----------
Total 0.1 (1.0) (1.7)
---------------------------------------- -------- -------- -----------
3. Non-recurring or special items
Non-recurring or special items are disclosed separately to
improve visibility of the underlying business performance.
Management has defined such items as restructuring and site
closure costs, acquisition costs and other non-recurring items
incurred outside the normal course of business.
Half Half
year year Year
to to to
31 July 31 July 31 January
2017 2016 2017
GBPm GBPm GBPm
----------------------- -------- -------- -----------
Non-cash items
- Restructuring charge - - 0.8
Total - - 0.8
----------------------- -------- -------- -----------
From year ended 31 January 2017, management took the view that
IFRS2 charges and amortisation of acquired intangible assets are
not non-recurring or special items and therefore have been excluded
from the above table.
4. Taxation
The tax (charge)/credit on profit/(loss) from continuing
operations before taxation has been estimated at GBP0.1m (July
2016: GBPNil; January 2017: credit GBP0.7m).
5. Discontinued operations
Discontinued operations in the prior full and half-year results
comprise the Agar, Carnation, Wallace and Qados brands together
with Digitron which was sold subsequent to 31 January 2017 on 24
March 2017 and Titman Tip Tools, which was sold on 28 July 2017.The
prior year balances have been restated where required.
Details of the disposal of Digitron and Titman Tip Tools are set
out below:
Digitron
The results of the Digitron discontinued operation, which have
been included in the consolidated statement of comprehensive
income, were as follows:
Half Half
year year Year
to to to
31 July 31 July 31 January
2017 2016 2017
GBPm GBPm GBPm
---------------------------------------- -------- -------- -----------
Revenue 0.3 0.7 1.4
Expenses (0.3) (0.6) (1.4)
---------------------------------------- -------- -------- -----------
Profit before tax - 0.1 -
Attributable tax expense - - -
---------------------------------------- -------- -------- -----------
Net profit from discontinued operations
attributable to equity shareholders - 0.1 -
---------------------------------------- -------- -------- -----------
During the year, Digitron contributed less than GBP0.1m (H1
FY17: GBP0.1m) to the Group's net operating cash flows, paid less
than GBP0.1m (H1 FY17: less than GBP0.1m) in respect of investing
activities and paid less than GBP0.1m (H1 FY17: less than GBP0.1m)
in respect of financing activities.
Cash consideration of GBP0.3m was paid for the inventory of the
business of GBP0.3m.
Titman Tip Tools
The results of the Titman Tip Tools discontinued operation,
which have been included in the consolidated statement of
comprehensive income, were as follows:
Half Half
year year Year
to to to
31 July 31 July 31 January
2017 2016 2017
GBPm GBPm GBPm
------------------------------------- -------- -------- -----------
Revenue 1.0 1.0 2.0
Expenses (1.0) (0.8) (1.8)
------------------------------------- -------- -------- -----------
Profit before tax - 0.2 0.2
Attributable tax expense - - -
Gain from discontinued operations
attributable to equity shareholders - 0.2 0.2
------------------------------------- -------- -------- -----------
During the year, Titman Tip Tools contributed less than GBP0.1m
(H1 FY17: GBP0.2ml) to the Group's net operating cash flows, paid
less than GBP0.1m (H1 FY17: less than GBP0.1m) in respect of
investing activities and paid less than GBP0.1m (H1 FY17: less than
GBP0.1m) in respect of financing activities.
Details of the disposal of Titman Tip Tools are set out
below:
GBPm
------------------------------ -----
Property, plant and equipment 0.1
Inventories 0.3
Trade and other receivables 0.3
Trade and other payables (0.2)
------------------------------ -----
Assets sold 0.5
Net gain on disposal -
------------------------------ -----
Total consideration 0.5
------------------------------ -----
Satisfied by:
Cash and cash equivalents 0.5
Total consideration 0.5
------------------------------ -----
6. Earnings/(loss) per share
Earnings per share (EPS) is the amount of post-tax profit
attributable to each share (excluding those held in the Employee
Benefit Trust or by the Company). Basic EPS measures are calculated
as the Group profit for the period attributable to equity
shareholders divided by the weighted average number of shares in
issue during the period. Diluted EPS takes into account the
dilutive effect of all outstanding share options priced below the
market price, in arriving at the number of shares used in its
calculation. Both of these measures are also presented on an
adjusted basis, to remove the effects of non-recurring or special
items. The note below demonstrates how this calculation has been
performed.
The calculation of the basic, adjusted and diluted earnings per
share is based on the following data:
Key 31
July 31 July 31 January
2017 2016 2017
Million Million Million
------------------------ ---- -------- -------- ----------
Weighted average number
of ordinary shares
for the purposes of
basic earnings per
share A 177.8 171.0 177.8
Effect of dilutive
potential ordinary
shares: share options 4.6 - 2.7
------------------------------ -------- -------- ----------
Weighted average number
of ordinary shares
for the purposes of
diluted earnings per
share B 182.4 171.0 180.5
------------------------ ---- -------- -------- ----------
Key 31
July 31 July 31 January
Earnings /(loss) from continuing 2017 2016 2017
operations GBPm GBPm GBPm
-------------------------------------------- ------------- ----- ------- ----------
Earnings /(loss) for the period 0.1 (0.1) (0.1)
Profits from discontinued operations,
net of tax - (0.9) (0.9)
----------------------------------------------------------- ----- ------- ----------
Continuing profit/(loss) for the
period attributable to equity shareholders C 0.1 (1.0) (1.0)
Total non-recurring or special items
included in profit before tax - - 0.8
Total non-recurring or special items
in taxation - - (0.1)
----------------------------------------------------------- ----- ------- ----------
Earnings adjusted for EPS D 0.1 (1.0) (0.3)
-------------------------------------------- ------------- ----- ------- ----------
Key 31 July 31 July 31 January
2017 2016 2017
------------------------------ ---- ------- ------- ----------
EPS measures
Basic continuing EPS C/A 0.1p (0.6p) (0.6p)
Diluted continuing EPS C/B 0.1p (0.6p) (0.6p)
------------------------------- --- ------- ------- ----------
Adjusted EPS measures
Adjusted basic continuing EPS D/A 0.1p (0.6p) (0.2p)
Adjusted diluted EPS D/B 0.1p (0.6p) (0.2p)
------------------------------- --- ------- ------- ----------
7. Cautionary statement
This interim financial information has been prepared only for
the shareholders of Elektron as a whole and its sole purpose and
use is to assist shareholders to exercise their governance rights.
Elektron and its Directors and employees are not responsible for
any other purpose or use or to any other person in relation to this
report.
The report contains indications of likely future developments
and other forward-looking statements that are subject to risk
factors associated with, among other things, the economic and
business circumstances occurring from time to time in the
countries, sectors and business segments in which the Group
operates. Key risks and their mitigation have not changed
materially in the period from those disclosed on pages 12 to 14 of
the annual financial statements for the year ended 31 January
2017.
These and other factors could adversely affect the Group's
results, strategy and prospects. Forward-looking statements involve
risks, uncertainties and assumptions. They relate to events and/or
depend on circumstances in the future which could cause actual
results and outcomes to differ materially from those currently
anticipated. No obligation is assumed to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
8. Other information
The financial information in this statement does not constitute
statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The financial information in respect of the
year ended 31 January 2017 has been extracted from the statutory
accounts, which have been filed with the Registrar of Companies.
The Independent auditor's report on those accounts was unqualified
and did not contain a statement under Sections 498(2) or 498(3) of
the Companies Act 2006.
Copies of the interim results are available to download from the
Group's website, www.elektron-technology.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR XBLFLDKFFBBQ
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