TIDMESCH
RNS Number : 6753Y
Escher Group Holdings PLC
07 March 2017
7 March 2017
Escher Group Holdings plc
Strong profitability and cash generation driven by increasing
recurring revenue streams
Escher Group Holdings plc (AIM: ESCH, "Escher" or "the Group"),
a world leading provider of outsourced, point of service software
to the postal industry, has published its results for the year
ended 31 December 2016.
Financial highlights
-- Group revenue grew to US$22.4 million (2015: US$22.0 million)
o Maintenance revenue grew 8% to US$8.2 million (2015: US$7.6 million)
o Support revenues increased by 41% to US$3.4 million (2015: US$2.4 million)
-- Adjusted EBITDA* up 41% to US$5.7 million (2015: US$4.0 million)
-- Profit before tax (before exceptional items) more than
doubled to US$2.7 million (2015: US$1.1 million)
-- Basic earnings per share US$10.0 cents (2015: US$2.3 cents)
-- Strong cash generation resulted in a net positive cash
position at year end of US$0.1 million (31 December 2015: net debt
$2.7m)
Operational highlights
-- Continued transition to more predictable recurring revenue streams
-- Strong retention within existing customer base and renewals
of maintenance and support contracts
-- New licence sales of Riposte digital transaction management
platform, to Vietnamese and Qatari posts
-- Broadened technology offerings to existing postal clients:
o Sale of loyalty platform to Saudi Post
o Launch of secure digital communication platform in South Africa
-- Expanded product functionality based on Riposte:
o Retail side of platform developed further to operate on
additional hardware devices and operating systems
-- Continued investment in RiposteTrEx in support of new licensing and permitting business
* Adjusted EBITDA represents operating profit before
depreciation, amortisation, share based payment and exceptional
items.
% movements are based on unrounded data, rather than the rounded
information presented in this report.
Liam Church, Escher's Chief Executive, commented:
"Major international customer deployments in 2014 and 2015 are
now producing recurring, cash-generating, revenue streams which
underpin the results in 2016 as well as strengthening the outlook.
Total maintenance revenue exceeded US$8m for the first time in the
company's history - this number is destined to increase with the
additional licence sales achieved in 2016.
"We are now focused on developing new products and services that
will enhance and expand our position within our current postal
customer base.
"The current financial year has started in line with the Board's
expectations. Given the quality of our pipeline, current technology
set and contracted revenue, we remain confident about the prospects
for 2017 and beyond."
Enquiries:
Escher www.eschergroupholdings.com +353 (0)1 254 5400
Liam Church, Chief Executive Officer
Clem Garvey, Chief Financial Officer
Panmure Gordon +44 (0)20 7886 2500
Andrew Godber/Alina Vaskina, Corporate
Finance
Erik Anderson, Corporate Broking
Instinctif Partners +44 (0)20 7457 2020
Adrian Duffield/Lauren Foster
Market abuse regulation
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Forward looking statements
This press release contains certain forward-looking statements.
Actual results may differ materially from those projected or
implied in such forward-looking statements. Such forward-looking
information involves risks and uncertainties that could
significantly affect expected results.
About Escher
Escher is a world leading provider of outsourced
point-of-service software for use in the worldwide postal, retail
and government sectors. Its core software, Riposte(R) , a digital
transaction management platform, enables its customers to expand
their offerings, providing new services, whilst reducing costs and
increasing efficiency.
Overview
2016 was another year of solid progress in the business,
resulting in improved profitability in Postal and Retail Services,
the core of Escher's activity.
Group revenue was US$22.4 million (2015: US$22.0 million)
generating US$5.7 million adjusted EBITDA* (2015: US$4.0 million),
an increase of 41% year on year. Cash generation permitted the
Group to finish the year in a net-cash-positive position.
The main drivers behind this increase in profitability were the
8% increase in Maintenance revenues and the 41% increase in Support
revenues. At the same time, Escher's costs remained under control
and the Group achieved a 2% reduction in operating expenses before
exceptional items.
The Group reinforced its position as the premier provider of
point-of-service software to the postal sector. In 2016, Escher
concluded new licence sales of the Riposte digital transaction
management platform to Vietnam Post and Qatar Post. These customer
acquisitions are major achievements in Escher's continued pursuit
of being the number one trusted advisor for postal organisations
throughout the world.
Escher's core product remains the reference for the postal
sector across the globe, giving customers a scalable platform to
digitise the processing of complex transactions in omni-channel
environments. The Group continues to enjoy strong retention within
the existing customer base, with renewals of maintenance and
support contracts in line with previous years.
Escher is also focused on developing new products and services
that enhance its position within its current postal customer base,
as well as expanding that base.
The Group continued to invest in its RiposteTrEx product in
2016. This product is the digital platform being used for its
licensing and permitting solutions. It was rolled out in
partnership with An Post, during 2016, to enable Irish businesses
to digitally access the licences and permits they need, via
Licences.ie.
Current trading and outlook
During 2015 and the first half of 2016, the global postal
industry's revenues have continued to show growth. This growth is
achieved from domestic ecommerce, international ecommerce and
financial services. This trend is expected to continue.
The Group expects to see further investment in technology by
postal organisations who wish to capitalise on these growth
opportunities. The Group is well positioned to benefit from this
context.
Escher is an important brand name in the postal industry
world-wide and continues to build both pipeline and relevant
product for this market. Escher sees that its investment in
mobility, particularly in deployments on smartphones, positions the
Group to deliver on its pipeline.
The evolving shape of Escher's business, with its increasingly
strong recurring revenue streams, which now represent more than 50%
of turnover, allows the Group to begin 2017 with a greater degree
of confidence than previously experienced.
The proportionate weighting of Maintenance and Support revenue
streams, compared to Software Development and Consulting Services,
produces a positive gross margin mix effect, which should
continue.
However, selling cycles in the governmental and
quasi-governmental sectors are long and unpredictable, and Escher's
software licence sales remain susceptible to these
inconsistencies.
Although slower than anticipated, the licensing and permitting
platform, Licences.ie, continued to broaden its reach by adding
licensing and public authorities throughout Ireland during 2016.
The Group expects this trend to continue in 2017, as the platform
becomes more embedded as a government digital service
initiative.
The digitisation of governmental services globally continues to
show growth. The Group will continue to monitor the US market
during 2017 to determine if there is an opportunity to
commercialise its licensing and permitting platform developed for
use in Ireland.
Operational Review
Organisation
In 2016, the Group merged its Interactive Services business with
its Retail Services business to consolidate these activities under
a Postal and Retail Services unit. This allows the Group to better
focus its efforts on the changing needs of its postal customer
base.
During 2016, the Group also decided that the focus of its
Digital Services unit should primarily be on developing licensing
and permitting management solutions.
Postal and Retail Services
New licence sales of the Riposte digital transaction management
software in 2016 confirmed the Group's position as the vendor of
choice for postal organisations across the world in the management
of complex digital transactions in omni-channel environments.
As anticipated, the major customer rollouts of 2015 have
resulted in increases in Maintenance and Support revenue streams.
This has brought balance to the business model with more than 50%
of revenue now recurring.
Total Maintenance revenue in 2016 exceeded US$8 million for the
first time in the Group's history and this number should increase
with the additional licence sales achieved this year.
The broadening of Escher's technological offerings to its postal
clientele continued throughout 2016 with the sale of its loyalty
platform to Saudi Post, the launch of its secure digital
communication platform in South Africa and Isle of Man's e-wallet
for benefit payment, being rolled-out.
2016 also saw the development of Canada Post's Concept Store
installations, designed to facilitate ecommerce transactions for
its customers. Customers can pick-up or drop-off parcels, try-on
clothing purchased on the web, access individually-reserved
parcel-lockers and process ecommerce returns. Escher's software
powers much of this functionality and renders it accessible to
customers 24 hours per day, seven days per week.
The business model that Escher has developed, whereby initial
sales of licences and projects deliver strong recurring revenue
streams, applies as much for these new offerings as it does in the
more traditional activities.
2015's deployment of some 15,000 mobile solutions for the
Pick-Up-Drop-Off points of a major international logistics company,
seeking to strengthen its ecommerce offer, produced revenues of
some US$750,000 during 2016.
Each of these projects is, in itself, a demonstration of the
potential that Escher has to bring its technologies to bear in
postal organisations' activities outside of the retail counter and
point-of-service domains, where the Group has, traditionally been
strong.
Escher continued to augment its capacities in the loyalty and
e-Money activities adding additional payment functionality, amongst
others, to its platforms.
Escher's project to deliver a new point-of-service,
branch-banking solution to the Irish bank, permanent tsb achieved a
significant milestone at year-end with the completion of the core
functionality. Escher is now engaged with permanent tsb in
preparing for the deployment of the system during 2017.
The Group's experience with permanent tsb has reinforced its
capacity to accompany postal organisations in their expansion into
payments and other financial services.
Digital Services
Licensing and Permitting
Licensing and permitting has traditionally been a complex
paper-based government service. Across the world, state and local
governments are now looking to digitise their processes in these
areas in order to maximise revenue generation through compliance,
to minimise costs of operation and to simplify the citizen's
experience.
Escher believes that the RiposteTrEx platform positions it well
to play an important role in this market.
The Irish Licences.ie platform, based on RiposteTrEx, continued
to broaden its reach across licensing and public authorities during
2016. Ireland's Property Services Regulatory Authority (PSRA)
adopted the platform for the regulation of more than 20,000
registered Property Services Providers in the State.
During the course of 2016 the Group explored the potential of
this market in a number of geographies, in particular in the United
States. Potential routes to market have been identified for further
development during 2017.
Start-Up Investments
During 2016, the Group granted loan notes of EUR125,000 and
EUR100,000, respectively to two Irish start-up companies, Deposify
and CircIt. Both companies wished to use the RiposteTrEx platform
as the technology enabler for their business plans.
The Group recognised revenues in the amount of US$0.5m in
respect of licence and services provided to these entities in
return for equity.
Deposify's aim is to bring trust to the landlord/tenant
relationship and Circit aims to create a secure environment in
which auditors and banks can share information.
The Group does not intend to participate in further start-up
investments in 2017.
FINANCIAL REVIEW
Introduction
The financial results for the year to 31 December 2016 reflect a
year of progress. Escher further increased its recurring revenue
levels to more than 50% of total revenue and maintained control
over operating costs.
Cash generation from operating activities during the year was
strong and resulted in Escher being in a net cash positive position
at year end.
Revenue
Revenue for the year ended 31 December 2016 was US$22.4 million
(2015: US$22.0 million), an increase of 2%, driven by the
substantial increase in recurring revenue streams of maintenance
and support.
Contribution
2016 2015 Change to Group
Analysis of revenue by category US$'000 US$'000 % %
------------------------------------ --------- --------- ------ -------------
Software licences 4,613 4,138 11 20
Software development and consulting
services 6,209 7,873 (21) 28
Maintenance 8,222 7,606 8 37
Support 3,367 2,393 41 15
22,411 22,010 2 100
------------------------------------ --------- --------- ------ -------------
Licence revenue was US$4.6 million (2015: US$4.1 million) mainly
as a result of licence wins in Vietnam and Qatar which further
demonstrated Escher's position as market leader in its traditional
Postal Market.
Maintenance revenue increased 8%, or US$0.6 million to US$8.2
million (2015: US$7.6 million) and Support revenue increased by 41%
to US$3.4 million (2015: US$2.4 million). These increases reflect
the Group's continuing ability to capitalise on licence sales to
produce strong recurring revenue streams. Maintenance and support
recurring revenue streams now amount to 52% of overall revenue.
Software development and consulting services reduced by 21% to
US$6.2m (2015: US$7.9m) as expected. This reduction reflects the
conclusion of two major rollouts during 2015.
Gross profit
Gross profit was US$15.0 million (2015: US$13.6 million). The
gross profit margin rate increased to 67% (2015: 62%) reflecting
increases in the higher-margin revenue lines (software licences,
maintenance and support) and reductions in lower margin lines
(software development and consulting services).
Exceptional items
In August 2016, Escher reorganised its service operations.
Exceptional costs of US$0.3m (2015: US$nil million) were recognised
during 2016 in relation to this restructuring.
Operating expenses/profit (before exceptional items)
Operating expenses before exceptional items decreased by US$0.2
million or 2% to US$11.8 million due to tight cost management.
Decreases of 2%-3% were recorded in sales and marketing and
administrative expenses, reflecting prudent cost management and
favourable exchange rates. These were offset by a slight increase
of US$0.1 million in research and development (R&D).
Analysis of operating expenses (before exceptional 2016 2015 Change
items) US$'000 US$'000 %
--------------------------------------------------- --------- --------- ------
Research and development 3,830 3,770 2
Sales and marketing 3,520 3,612 (3)
Administrative expenses 4,472 4,613 (3)
--------------------------------------------------- --------- --------- ------
Total 11,822 11,995 (2)
--------------------------------------------------- --------- --------- ------
The Group capitalised US$1.3 million of R&D costs (2015:
US$1.3 million), gross of government grants of US$0.3 million
(2015: US$0.1 million) in respect of internally generated
intangible assets. The amortisation charge for intangible assets
was US$1.9 million (2015: US$1.8 million). The split between the
projects and the amortisation charges are shown below.
2016 2015
US$'000 US$'000
------------------------------------ --------- ---------
RiposteTrEx capitalised cost 460 528
Riposte capitalised cost 886 782
------------------------------------ --------- ---------
Total capitalised cost during year 1,346 1,310
------------------------------------ --------- ---------
RiposteTrEx amortisation (697) (900)
Riposte amortisation (1,244) (945)
------------------------------------ --------- ---------
Total amortisation cost during year (1,941) (1,845)
------------------------------------ --------- ---------
Net impact on the income statement (595) (535)
------------------------------------ --------- ---------
Adjusted EBITDA
Adjusted EBITDA increased by US$1.7 million, or 41%, to US$5.7
million (2015: US$4.0 million), reflecting the increase in revenue
coupled with reduction in costs. Adjusted EBITDA represents
operating profit before depreciation, amortisation, share based
payments and exceptional items.
2016 2015
US$'000 US$'000
-------------------- --------- ---------
Operating profit 2,866 1,654
Add back:
Depreciation 282 372
Amortisation 1,941 1,845
-------------------- --------- ---------
EBITDA 5,089 3,871
Share based payment 281 131
Exceptional items 287 -
-------------------- --------- ---------
Adjusted EBITDA 5,657 4,002
-------------------- --------- ---------
Net finance expense
Net finance expense reduced by US$0.1m to US$0.5 million (2015:
US$0.6 million) as a result of Escher's reduced debt level. The
amortisation charge for deferred financing costs was US$0.1 million
(2015: US$0.1 million).
Profit before tax (and exceptional items)
The profit before tax increased by 152% to US$2.7 million (2015:
US$1.1 million). Adjusted profit before tax excluding share based
payments and exceptional items more than doubled to US$2.9 million
(2015: US$1.2 million).
Income tax expense
The income tax expense is US$0.5 million (2015: US$0.6 million).
The effective tax rate is 21% (2015: 60%). The reduction is due to
the conclusion of the corporate restructuring in 2015.
Earnings per share
The Group reported a basic earnings per share (EPS) of US$10.0
cents per share (2015: US$2.3 cents per share), an increase of over
300% from 2015. Diluted EPS for 2016 also increased by over 300% to
US$9.8 cents from US$2.2 cents per share in the prior year.
Dividend
The Board is not proposing to pay a dividend for the year.
Cash flow and net cash
Net cash at 31 December 2016 was US$0.1 million (2015: Net debt
US$2.7 million) an improvement of US$2.8 million year on year.
Cash at the end of 2016 was US$6.1 million (2015: US$7.3
million) and borrowings were US$6.0 million (2015: US$10.0
million).
The net cash improvement of US$2.8m comprises of net cash
generated from operations of US$4.2 million (2015: US$4.2 million)
offset by cash flows from investing activities which were US$1.5m
(2015: US$1.2m).
Cash used in investing activities resulted from investments in
intangible assets net of government grants (2016 US$1.1m; 2015
US$1.2m); acquisitions of investments of US$0.3m (2015 US$nil) and
purchases of property, plant and equipment (2016 US$0.1m; 2015
US$0.1m).
Net cash used in financing activities was US$4.0 million (2015:
US$1.0 million). During 2016 scheduled loan repayments totalling
US$1.0 million were made (2015: US$1.0 million) in addition to
repaying the drawn debt revolver of US$3.0 million (2015: US$0
million). This facility is still available.
Consolidated income statement
For the financial year ended 31 December 2016
2016 Before 2016 After
Notes Exceptional 2016 Exceptional exceptional
items US$'000 items items 2015
US$'000 US$'000 US$'000
--------------------------- ------- -------------- ---------------- ------------ --------
Revenue 1 22,411 - 22,411 22,010
Cost of sales 2 (7,436) - (7,436) (8,361)
--------------------------- ------- -------------- ---------------- ------------ --------
Gross profit 14,975 - 14,975 13,649
Operating expenses 2 (11,822) (287) (12,109) (11,995)
Operating profit 3,153 (287) 2,866 1,654
Finance income 5 2 - 2 2
Finance costs 5 (490) - (490) (598)
--------------------------- ------- -------------- ---------------- ------------ --------
Net finance costs (488) - (488) (596)
Profit before income tax 2,665 (287) 2,378 1,058
Income tax expense 6 (547) 36 (511) (632)
--------------------------- ------- -------------- ---------------- ------------ --------
Profit for the financial
year 2,118 (251) 1,867 426
--------------------------- ------- -------------- ---------------- ------------ --------
Earnings per share (in US$
cents per share) 18
- Basic 10.0 2.3
- Diluted 9.8 2.2
--------------------------- ------- -------------- ---------------- ------------ --------
Reconciliation of EBITDA 2016 2015
and adjusted EBITDA Notes US$'000 US$'000
------------------------- ------- -------- --------
Operating profit 2,866 1,654
Depreciation 7 282 372
Amortisation 8 1,941 1,845
EBITDA 5,089 3,871
Share options expense 4 281 131
Exceptional items 3 287 -
------------------------- ------- -------- --------
Adjusted EBITDA 5,657 4,002
------------------------- ------- -------- --------
Consolidated statement of comprehensive income
For the financial year ended 31 December 2016
2016 2015
US$'000 US$'000
------------------------------------------------------- -------- --------
Profit for the financial year 1,867 426
Other comprehensive income:
Items that may be reclassified to the income statement
Currency translation differences (348) (589)
------------------------------------------------------- -------- --------
Total comprehensive income for the financial year 1,519 (163)
------------------------------------------------------- -------- --------
Consolidated statement of financial position
At 31 December 2016
2016 2015
Notes US$'000 US$'000
--------------------------------------------- ----- -------- --------
Assets
Non-current assets
Property, plant and equipment 7 218 383
Goodwill and intangible assets 8 35,020 36,051
Deferred tax assets 6 534 723
Investments in equity instruments 12 746 -
--------------------------------------------- ----- -------- --------
36,518 37,157
Current assets
Trade and other receivables 10 6,712 7,164
Cash and cash equivalents 11 6,055 7,346
12,767 14,510
--------------------------------------------- ----- -------- --------
Total assets 49,285 51,667
--------------------------------------------- ----- -------- --------
Equity and liabilities
Equity attributable to equity holders of
the parent
Issued capital presented as equity 16 128 128
Share premium 16 26,909 26,909
Other reserves 743 810
Retained earnings 9,419 7,552
--------------------------------------------- ----- -------- --------
Total equity 37,199 35,399
--------------------------------------------- ----- -------- --------
Non-current liabilities
Borrowings 14 4,954 5,844
Provisions for other liabilities and charges 21 21
--------------------------------------------- ----- -------- --------
4,975 5,865
Current liabilities
Borrowings 14 939 3,911
Trade and other payables 13 5,960 6,277
Current income tax liabilities 212 215
--------------------------------------------- ----- -------- --------
7,111 10,403
Total liabilities 12,086 16,268
--------------------------------------------- ----- -------- --------
Total equity and liabilities 49,285 51,667
--------------------------------------------- ----- -------- --------
Consolidated statement of changes in equity
For the financial year ended 31 December 2016
Cumulative
foreign Share
Equity currency based
share Share translation payment Retained Total
capital premium reserve reserves earnings equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
--------------------------- --------- --------- ------------- --------- ---------- ---------
Balance at 1 January
2015 128 26,909 (981) 2,249 7,126 35,431
Profit for the financial
year - - - - 426 426
Other comprehensive
income - - (589) - - (589)
--------------------------- --------- --------- ------------- --------- ---------- ---------
Total comprehensive income
for the financial year - - (589) - 426 (163)
Share based payments - - - 131 - 131
Balance at 1 January
2016 128 26,909 (1,570) 2,380 7,552 35,399
Profit for the financial
year - - - - 1,867 1,867
Other comprehensive
income - - (348) - - (348)
--------------------------- --------- --------- ------------- --------- ---------- ---------
Total comprehensive income
for the financial year - - (348) - 1,867 1,519
Share based payments - - - 281 - 281
Balance at 31 December
2016 128 26,909 (1,918) 2,661 9,419 37,199
--------------------------- --------- --------- ------------- --------- ---------- ---------
Consolidated statement of cash flows
For the financial year ended 31 December 2016
2016 2015
Notes US$'000 US$'000
---------------------------------------------- ------- --------- ---------
Cash flows from operating activities
Cash generated from operations 15 4,827 5,719
Interest received 2 2
Interest paid (348) (487)
Income tax paid (289) (1,069)
Net cash generated from operating activities 4,192 4,165
---------------------------------------------- ------- --------- ---------
Cash flows from investing activities
Purchases of property, plant and equipment 7 (117) (57)
Additions to intangible assets 8 (1,346) (1,310)
Purchase of loan notes 12 (251) -
Government grant received 254 136
---------------------------------------------- ------- --------- ---------
Net cash used in investing activities (1,460) (1,231)
---------------------------------------------- ------- --------- ---------
Cash flows from financing activities
Repayment of borrowings 14 (4,000) (4,000)
Proceeds from borrowings 14 - 3,000
Borrowing costs (6) (40)
---------------------------------------------- ------- --------- ---------
Net cash used in financing activities (4,006) (1,040)
---------------------------------------------- ------- --------- ---------
Net (decrease)/increase in cash and cash
equivalents (1,274) 1,894
---------------------------------------------- ------- --------- ---------
Cash and cash equivalents at beginning
of financial year 7,346 5,720
Foreign exchange adjustments (17) (268)
Net (decrease)/increase in cash and cash
equivalents (1,274) 1,894
---------------------------------------------- ------- --------- ---------
Cash and cash equivalents at end of financial
year 11 6,055 7,346
---------------------------------------------- ------- --------- ---------
Selected accounting policies applied in the preparation of these
consolidated financial statements are as follows:
Basis of preparation
The financial information contained in this results announcement
has been extracted from the Group financial statements for the year
ended 31 December 2016 and is presented in US$, rounded to the
nearest thousand. The financial information does not include all
the information and disclosures required in the annual financial
statements. The Group financial statements for the year ended 31
December 2016 have been prepared in accordance with International
Financial Reporting Standards and IFRIC interpretations endorsed by
the European Union and were approved by the Board of Directors on 6
March 2017. The accounting policies used in preparing the group
financial statements for 31 December 2016 are consistent with those
applied in the prior year. The 2016 Annual Report will be
distributed to shareholders and made available on the Company's
website www.eschergroup.com. It will also be filed with the
Companies Registration Office. The auditors have reported on the
financial statements for the year ended 31 December 2016 and their
report was unqualified.
Notes to the consolidated financial statements
1 Segment information
In line with the requirements of IFRS 8 "Operating Segments",
the Group has identified its chief operating decision maker (CODM)
as the Board of the Company. The Board reviews the Group's internal
reporting in order to assess the performance of the Group and
allocate resources. The Board considers the business from a product
perspective and reviews working capital and overall statement of
financial position performance on a Group-wide basis. Consequently,
the Board determined there to be only one segment.
The Board assesses the performance of the segment based
primarily on measures of revenues, adjusted EBITDA and profit
before tax. These revenues derive from the following main
sources:
2016 2015
Analysis of revenue by category US$'000 US$'000
--------------------------------------------- --------- ---------
Software licences 4,613 4,138
Software development and consulting services 6,209 7,873
Maintenance 8,222 7,606
Support 3,367 2,393
--------------------------------------------- --------- ---------
22,411 22,010
--------------------------------------------- --------- ---------
The entity is domiciled in the Republic of Ireland. The Group's
external revenues are derived from the following main geographic
locations:
2016 2015
US$'000 US$'000
----------------------- --------- ---------
Ireland 1,508 1,546
UK 609 645
Other Europe 4,768 5,331
North America 7,769 10,161
Asia-Pacific region 4,570 1,939
Africa and Middle East 3,187 2,388
----------------------- --------- ---------
22,411 22,010
----------------------- --------- ---------
Fluctuations in revenues with individual customers are typically
due to a combination of the number of upfront perpetual licence
contracts as well as the level and timing of development and other
software customisation requirements with that customer (the latter
being from both initial customisation work following a new licence
win and periodic projects driven by a customer's internal
requirements and software upgrades).
During the year, the Group derived revenues from the following
external customers who individually represented 10% or more of
total reported revenues for that year:
2016 2015
% %
----------------------------- ------ ------
Customer A 30% 38%
Customer B 13% 0%
----------------------------- ------ ------
% of total reported revenues 43% 38%
----------------------------- ------ ------
The total of non-current assets other than deferred income tax
assets located in the Republic of Ireland is US$8.9 million (2015:
US$10.2 million), and the total of non-current assets located in
other countries, primarily North America, is US$26.4 million (2015:
US$26.2million).
2 Expenses by nature
2016 2015
US$'000 US$'000
---------------------------------------------- --------- ---------
Employee benefit expense (note 4) 10,043 9,209
Directors' remuneration 1,292 1,222
--------- ---------
Total employee benefit expense and directors'
remuneration 11,335 10,431
Rental and utilities expense 1,124 1,056
Travel costs 673 799
Consulting and contractors expense 1,226 1,963
Insurance 640 586
(Gain)/loss on foreign exchange (11) 623
Legal fees 315 211
Selling and marketing costs 407 538
Depreciation (note 7) 282 372
Amortisation of intangible assets (note 8) 1,941 1,845
Data communications 305 357
Professional fees 679 759
Provision for impaired receivables 24 297
Other expenses 605 519
---------------------------------------------- --------- ---------
Total 19,545 20,356
---------------------------------------------- --------- ---------
Analysed as:
Cost of sales 7,436 8,361
Research and development 3,830 3,770
Sales and marketing 3,520 3,612
Administrative expenses 4,472 4,613
---------------------------------------------- --------- ---------
Operating costs before exceptional items 11,822 11,995
Exceptional items (Note 3) 287 -
---------------------------------------------- --------- ---------
Operating costs 12,109 11,995
---------------------------------------------- --------- ---------
Total 19,545 20,356
---------------------------------------------- --------- ---------
3 Exceptional Items
2016 2015
US$'000 US$'000
------------------------------ --------- ---------
Employee Termination Benefits 287 -
------------------------------ --------- ---------
During 2016, Escher reorganised its service operations,
resulting in head count reduction. All termination benefits related
to the restructuring from the date of notification have been
included in calculation of the exceptional item. The total
termination benefits that were incurred was US$287,000 (2015: US$
Nil). The program of restructuring is fully concluded and all
termination benefits have been paid in the current reporting
period.
4 Employee benefit expense
2016 2015
US$'000 US$'000
-------------------------------------------- --------- ---------
Wages and salaries 10,002 9,618
Social insurance costs 674 502
Pension costs - defined contribution scheme 281 278
-------------------------------------------- --------- ---------
10,957 10,398
Capitalised labour (note 8) (1,346) (1,310)
-------------------------------------------- --------- ---------
9,611 9,088
Employee share based payments (see note 17) 145 121
Exceptional costs 287 -
-------------------------------------------- --------- ---------
10,043 9,209
-------------------------------------------- --------- ---------
Total share based payments for the period amounted to US$281,000
(2015: US$131,000), of which US$145,000 (2015: US$121,000),
disclosed above, related to employees excluding Directors. The
remaining US$137,000 (2015: US$10,000) related to Directors'
remuneration.
The average number of persons employed by the Group during the
period was:
2016 2015
Number Number
------------------------- -------- --------
Development 93 100
Selling and distribution 21 17
Administration 25 22
------------------------- -------- --------
139 139
------------------------- -------- --------
The number of persons employed by the Group (including Executive
Directors) at 31 December 2016 was 126 (2015: 140).
The Group operates a number of defined contribution pension
schemes in which the majority of Group employees participate. The
assets of these schemes are held separately from those of the Group
in independently administered funds. The pension charge represents
contributions payable by the Group to the schemes and amounted to
US$276,000 for employees excluding Directors in respect of 2016
(2015: US$278,000), of which US$89,000 was accrued at the year-end
(2015: US$79,000).
5 Finance income and costs
2016 2015
US$'000 US$'000
----------------------------------------- --------- ---------
Finance income
Interest income 2 2
----------------------------------------- --------- ---------
Finance costs
Interest on bank borrowings (346) (463)
Amortisation of deferred financing costs (138) (135)
Finance charges (6) -
----------------------------------------- --------- ---------
(490) (598)
----------------------------------------- --------- ---------
Net finance costs (488) (596)
----------------------------------------- --------- ---------
6 Income tax expense
(a) Recognised in the income statement
2016 2015
US$'000 US$'000
-------------------------------------------------- --------- ---------
Current income tax
Irish corporation tax at 12.5% 107 151
Foreign corporation tax 255 334
Adjustments in respect of current income tax of
previous years (40) 189
-------------------------------------------------- --------- ---------
Total current tax 322 674
-------------------------------------------------- --------- ---------
Deferred tax
Origination and reversal of temporary differences 189 (42)
-------------------------------------------------- --------- ---------
Total deferred tax 189 (42)
-------------------------------------------------- --------- ---------
Total income tax charge recognised in the income
statement 511 632
-------------------------------------------------- --------- ---------
(b) Reconciliation of the total actual tax charge
The tax charge in the income statement for the
year differs from the standard rate of corporation
tax in the Republic of Ireland of 12.5%. The 2016 2015
differences are reconciled below: US$'000 US$'000
------------------------------------------------------ --------- ---------
Profit before taxation 2,378 1,058
Tax calculated at the Irish standard rate of
corporation tax of 12.5% 297 132
Effects of:
Income taxable at higher rates in other jurisdictions 173 127
Expenses not deductible for tax purposes 17 94
R&D tax credit - non-taxable (38) (66)
Other adjustments 19 10
Foreign withholding tax suffered 83 146
Adjustment in respect of current income tax of
previous years (40) 189
------------------------------------------------------ --------- ---------
Total income tax charge 511 632
------------------------------------------------------ --------- ---------
(c) Deferred tax
The deferred tax included in the consolidated statement of
financial position and the movement in each year is as follows:
Recognition
in income
1 January statement 31 December
2015 credit/(charge) 2015
US$'000 US$'000 US$'000
----------------------------------------- ---------- ----------------- -----------
Deferred tax assets
Trade losses carried forward 226 (226) -
Unrealised foreign exchange transactions - 8 8
Foreign R&D tax credits 181 (1) 180
Intangible assets - 231 231
Share options 227 (7) 220
Other 96 (12) 84
----------------------------------------- ---------- ----------------- -----------
730 (7) 723
----------------------------------------- ---------- ----------------- -----------
(c) Deferred tax (continued)
Recognition
in income
1 January statement 31 December
2016 credit/(charge) 2016
US$'000 US$'000 US$'000
----------------------------------------- ---------- ----------------- -----------
Deferred tax assets
Unrealised foreign exchange transactions 8 2 10
Foreign R&D tax credits 180 (1) 179
Intangible assets 231 (231) -
Share options 220 41 261
Other 84 - 84
----------------------------------------- ---------- ----------------- -----------
723 (189) 534
----------------------------------------- ---------- ----------------- -----------
Recognition
in income
1 January statement 31 December
2015 credit/(charge) 2015
US$'000 US$'000 US$'000
----------------------------------------- ---------- ----------------- -----------
Deferred tax liabilities
Unrealised foreign exchange transactions (49) 49 -
----------------------------------------- ---------- ----------------- -----------
(49) 49 -
----------------------------------------- ---------- ----------------- -----------
Analysis of non-current and current portions of deferred tax
assets and liabilities:
2016 2015
US$'000 US$'000
-------------------- --------- ---------
Deferred tax assets
Non-current 439 400
Current 95 323
-------------------- --------- ---------
534 723
-------------------- --------- ---------
7 Property, plant and equipment
Fixtures
Computer and Leasehold
equipment fittings Equipment improvements Total
US$'000 US$'000 US$'000 US$'000 US$'000
------------------------- ----------- ---------- ---------- -------------- ---------
Cost
At 31 December 2014 1,492 495 264 223 2,474
Additions 48 1 7 1 57
Exchange differences (50) (28) (23) (7) (108)
------------------------- ----------- ---------- ---------- -------------- ---------
At 31 December 2015 1,490 468 248 217 2,423
------------------------- ----------- ---------- ---------- -------------- ---------
At 31 December 2015 1,490 468 248 217 2,423
Additions 98 16 3 - 117
Exchange differences (16) (4) (4) (2) (26)
------------------------- ----------- ---------- ---------- -------------- ---------
At 31 December 2016 1,572 480 247 215 2,514
------------------------- ----------- ---------- ---------- -------------- ---------
Accumulated depreciation
At 31 December 2014 (1,231) (213) (137) (171) (1,752)
Charge for the financial
year (190) (92) (59) (31) (372)
Exchange differences 63 8 6 7 84
------------------------- ----------- ---------- ---------- -------------- ---------
At 31 December 2015 (1,358) (297) (190) (195) (2,040)
------------------------- ----------- ---------- ---------- -------------- ---------
At 31 December 2015 (1,358) (297) (190) (195) (2,040)
Charge for the financial
year (119) (92) (57) (14) (282)
Exchange differences 15 3 6 2 26
------------------------- ----------- ---------- ---------- -------------- ---------
At 31 December 2016 (1,462) (386) (241) (207) (2,296)
------------------------- ----------- ---------- ---------- -------------- ---------
Net book value
At 31 December 2014 261 282 127 52 722
------------------------- ----------- ---------- ---------- -------------- ---------
At 31 December 2015 132 171 58 22 383
------------------------- ----------- ---------- ---------- -------------- ---------
At 31 December 2016 110 94 6 8 218
------------------------- ----------- ---------- ---------- -------------- ---------
Depreciation of US$160,000 (2015: US$182,000) has been charged
in administrative expenses and US$122,000 (2015: US$190,000) in
cost of sales in the income statement.
8 Goodwill and intangible assets
Goodwill RiposteTrEx Riposte Total
US$'000 US$'000 US$'000 US$'000
------------------------------ --------- ------------ -------- ---------
Cost
At 31 December 2014 30,399 4,991 5,211 40,601
Additions - 528 782 1,310
Government grants - (25) (110) (135)
Exchange differences (546) - - (546)
------------------------------ --------- ------------ -------- ---------
At 31 December 2015 29,853 5,494 5,883 41,230
------------------------------ --------- ------------ -------- ---------
At 31 December 2015 29,853 5,494 5,883 41,230
Additions - 460 886 1,346
Government grants - - (254) (254)
Exchange differences (182) - - (182)
------------------------------ --------- ------------ -------- ---------
At 31 December 2016 29,671 5,954 6,515 42,140
------------------------------ --------- ------------ -------- ---------
Accumulated amortisation
At 31 December 2014 - (2,711) (623) (3,334)
Charge for the financial year - (900) (945) (1,845)
------------------------------ --------- ------------ -------- ---------
At 31 December 2015 - (3,611) (1,568) (5,179)
------------------------------ --------- ------------ -------- ---------
At 31 December 2015 - (3,611) (1,568) (5,179)
Charge for the financial year - (697) (1,244) (1,941)
------------------------------ --------- ------------ -------- ---------
At 31 December 2016 - (4,308) (2,812) (7,120)
------------------------------ --------- ------------ -------- ---------
Net book value
At 31 December 2014 30,399 2,280 4,588 37,267
------------------------------ --------- ------------ -------- ---------
At 31 December 2015 29,853 1,883 4,315 36,051
------------------------------ --------- ------------ -------- ---------
At 31 December 2016 29,671 1,646 3,703 35,020
------------------------------ --------- ------------ -------- ---------
The additions of US$1,346,000 (2015: US$1,310,000), gross of
government grants, all relate to capitalised labour (see note
8).
Amortisation of US$0.7 million (2015: US$0.85 million) on
RiposteTrEx and amortisation of US$1.2 million (2015: US$1 million)
on Riposte is included in operating costs in the income statement.
Some elements of these products are still in the development phase
and no amortisation has therefore occurred. The average remaining
amortisation period of the RiposteTrEx development is 25 months
(2015: 35 months). In the year there was US$1.9 million (2015:
US$1.9 million) of research and development expenditure (excluding
amortisation) recognised as an expense in the income statement as
the state of completion was not viewed as being sufficiently
developed to warrant capitalisation.
9 Government grants
Government grants of US$254,000 (2015: US$135,000) were
recognised in the year and were netted against the development cost
of the related intangible assets. For further details, please see
note 8.
10 Trade and other receivables
2016 2015
US$'000 US$'000
---------------------------------------- --------- --------
Current
Trade receivables 4,399 4,712
Less provision for impaired receivables (775) (370)
--------------------------------------------- --------- --------
Trade receivable - net 3,624 4,342
Accrued income 1,953 1,457
Amounts owed by subsidiaries - -
Prepayments 265 344
Other receivables 150 187
Recoverable taxes 720 834
--------------------------------------------- --------- --------
6,712 7,164
------------------------------------------- --------- --------
The carrying value of trade receivables approximates to their
fair value.
Trade receivables are non-interest bearing and are generally
settled within a 45-day period.
(a) Ageing of trade receivables
The ageing analysis of past due trade receivables is set out
below:
2016 2015
US$'000 US$'000
------------------------------ --------- --------
Neither impaired nor past due 1,872 1,859
Less than 30 days past due 812 880
Between 31-90 days past due 535 269
More than 90 days past due 405 1,334
Impaired 775 370
------------------------------ --------- --------
4,399 4,712
------------------------------ --------- --------
As of 31 December 2016, trade receivables of US$1,872,000 (2015:
US$1,859,000) were fully performing.
As of 31 December 2016, trade receivables of US$1,752,000 (2015:
US$2,483,000) were past due but not impaired. These relate to a
number of independent customers for whom there is no recent history
of default.
As of 31 December 2016, trade receivables of US$775,000 (2015:
US$370,000) were impaired. The individually impaired receivables
mainly relate to three customers (2015: three customers).
(b) The majority of the Group's customers operate within the
postal service industry, primarily representing national post
offices. As at 31 December 2016, a significant portion of the trade
receivables of the Group related to four customers (2015: three
customers) as follows:
2016 2015
% %
----------- ------ ------
Customer A 19% -%
Customer B 17% 7%
Customer C 12% 1%
Customer D 12% -%
Customer E 8% 31%
Customer F 1% 16%
Customer G -% 23%
----------- ------ ------
No credit limits were exceeded during the year and management
does not expect any losses from non-performance by the
counterparties.
11 Cash and cash equivalents
2016 2015
US$'000 US$'000
-------------------------- --------- --------
Cash at banks and in hand 6,055 7,346
------------------------------- --------- --------
Cash at banks earns interest at floating rates based on daily
bank deposit rates. Short-term deposits are made for varying
periods depending on the immediate cash requirements of the Group
and earn interest at the respective short-term deposit rates.
The Group's currency exposure is set out below. Such exposure
comprises the cash and cash equivalents of the Group that are
denominated other than in US Dollars. As at 31 December 2016 these
exposures were as follows:
2016 2015
US$'000 US$'000
---------------------------------------- --------- --------
Non-US Dollar denominated cash balances
Euro 2,228 1,150
Sterling 236 231
Singapore Dollar 100 128
South African Rand 9 16
---------------------------------------- --------- --------
Total non-US Dollar 2,573 1,525
---------------------------------------- --------- --------
12 Investments in equity instruments and loan notes
Available-for-sale financial assets include the following
classes of financial assets:
Book Value Fair Value
--------- ---------- -------------------
2016 2015 2016 2015
US$'000 US$'000 US$'000 US$'000
---------------------------- --------- ---------- --------- --------
Non-current assets
Investments carried at cost 495 - - -
Convertible loan notes 251 - 251 -
746 - 251 -
---------------------------- --------- ---------- --------- --------
Investments are designated as available-for-sale financial
assets if they do not have fixed maturities and fixed or
determinable payments, and management intends to hold on to them
for the medium to long-term. The financial assets are presented as
non-current assets unless they mature, or management intends to
dispose of them within 12 months of the end of the reporting
period.
In 2016, the Group made investments in the ordinary shares of
two companies (Deposify Limited and Circit Limited) of US$459,000
in consideration for the provision of services and licence
software. In addition to these investments, the Group invested in
convertible loan notes in both these companies in amount of
US$251,000. These loan notes will be convertible into Ordinary A
shares when agreed conditions have been met.
To determine if an available-for-sale financial asset is
impaired, the group evaluates the duration and extent to which the
fair value of the asset is less than its cost, and the financial
health of and short-term business outlook for the investee. The
group determined that there has been no decline in fair value of
the convertible loan notes or the cost of the investments as at
year end 31 December 2016.
13 Trade and other payables
2016 2015
US$'000 US$'000
--------------------------------------------------- --------- --------
Current
Trade payables 243 383
Amounts owed to subsidiaries - -
Accruals 1,220 1,262
Other creditors including tax and social insurance 532 387
Deferred revenue 3,965 4,245
-------------------------------------------------------- --------- --------
5,960 6,277
------------------------------------------------------ --------- --------
Amounts owed to subsidiary companies are unsecured and interest
free.
2016 2015
US$'000 US$'000
------------------------------------------------------------- --------- --------
Other creditors including tax and social insurance comprise:
Income tax deducted under PAYE 303 210
Pay related social insurance 115 57
Other creditors 114 120
------------------------------------------------------------------ --------- --------
532 387
---------------------------------------------------------------- --------- --------
14 Borrowings
Book value Fair value
------------------- -------------------
2016 2015 2016 2015
US$'000 US$'000 US$'000 US$'000
------------------------- --------- -------- --------- --------
Non-current liabilities
Bank loans 5,000 6,000 4,730 5,796
Deferred financing costs (46) (156) (46) (156)
------------------------- --------- -------- --------- --------
Borrowings 4,954 5,844 4,684 5,640
------------------------- --------- -------- --------- --------
Current liabilities
Bank loans 1,000 4,000 1,000 4,000
Deferred financing costs (61) (89) (61) (89)
------------------------- --------- -------- --------- --------
Borrowings 939 3,911 939 3,911
------------------------- --------- -------- --------- --------
Total borrowings 5,893 9,755 5,623 9,551
------------------------- --------- -------- --------- --------
On 9 October 2013, the Group agreed a revised banking facility
with Bank of Ireland Corporate Banking comprising a US$9.0 million
five-year term loan facility and a revolving twelve-month facility
for US$3.0 million, which was undrawn at year end (2015: fully
drawn). The amended term loan is amortising to October 2018.
All of the Group's borrowings are denominated in US Dollars.
Maturity of financial borrowings
The maturity profile of the carrying amount of the Group's
borrowings is set out below:
Between Between
Within 1 and 2 2 and 5 After
1 year years years 5 years Total
US$'000 US$'000 US$'000 US$'000 US$'000
-------------------------- --------- --------- --------- --------- ---------
Group
Bank loans 4,000 1,000 5,000 - 10,000
Deferred financing (89) (89) (67) - (245)
-------------------------- --------- --------- --------- --------- ---------
Borrowings at 31 December
2015 3,911 911 4,933 - 9,755
-------------------------- --------- --------- --------- --------- ---------
Bank loans 1,000 5,000 - - 6,000
Deferred financing (61) (46) - - (107)
-------------------------- --------- --------- --------- --------- ---------
Borrowings at 31 December
2016 939 4,964 - - 5,893
-------------------------- --------- --------- --------- --------- ---------
Borrowings are secured by fixed and floating charges over all
the Group's assets, including the guarantee of the holding
Company.
15 Cash generated from operations
2016 2015
US$'000 US$'000
---------------------------------------- -------- --------
Profit before tax 2,378 1,058
Adjustments for:
Depreciation 282 372
Amortisation of intangible assets 1,941 1,845
Amortisation of deferred financing 138 135
Finance income (2) (2)
Finance costs 352 463
Employee share based payments 281 131
Effect of foreign exchange (11) 623
Management fee - -
Non-cash revenue transactions
(Note 12) (495) -
Changes in working capital
Decrease in trade and other receivables 342 3,054
Decrease in trade and other payables (379) (1,960)
------------------------------------------ -------- --------
Cash generated from operations 4,827 5,719
------------------------------------------ -------- --------
16 Share capital and share premium
Number
of Ordinary
ordinary shares Total
Authorised share capital shares US$'000 US$'000
---------------------------------------- ----------- --------- ---------
Equity share capital
At 1 January 2015, 31 December 2015 and
31 December 2016
A ordinary shares of EUR0.005 each 201,000,000 1,395 1,395
---------------------------------------- ----------- --------- ---------
Equity
share
capital
Number (presented Share
of as equity) premium Total
Issued share capital shares US$'000 US$'000 US$'000
----------------------------------- ----------- ----------- --------- ---------
A ordinary shares of EUR0.005
each
At 1 January 2015 18,689,070 128 26,909 27,037
Shares issued during the financial
year 17,501 - - -
----------------------------------- ----------- ----------- --------- ---------
At 31 December 2015 18,706,571 128 26,909 27,037
Shares issued during the financial
year 24,269 - - -
----------------------------------- ----------- ----------- --------- ---------
At 31 December 2016 18,730,840 128 26,909 27,037
----------------------------------- ----------- ----------- --------- ---------
During 2016, 24,269 shares (2015: 17,501) were exercised during
the year as part of the Group's share based payment scheme. For
further details, please see note 17.
17 Share based payments
In 2016, 360,000 options were granted through the Company's
share option scheme to selected employees (2015: 44,228). The
options were granted in one tranche with an exercise price of
US$0.014, 180,000 of which vest in 2017, 2018 and 2019, with the
remaining 180,000 options vesting when various market share price
milestones are reached. The Group has no legal or constructive
obligation to repurchase or settle the options in cash. Under the
main share option plan the options have a seven-year life from
their date of vesting. Movements in the number of share options
outstanding and their related weighted average exercise prices are
as follows:
2016 2015
--------------------------- ---------------------------
Average exercise Average exercise
price in US$ per price in US$ per
share option Options share option Options
--------------- ----------------- -------- ----------------- --------
At 1 January 1.794 491,645 1.956 485,095
Granted 0.014 360,000 0.005 44,228
Forfeited 3,887 (28,685) 3.310 (20,177)
Exercised 0.007 (24,269) 0.007 (17,501)
--------------- ----------------- -------- ----------------- --------
At 31 December 0.965 798,691 1.794 491,645
--------------- ----------------- -------- ----------------- --------
Out of the 798,691 outstanding options (2015: 491,645 options),
438,692 options (2015: 387,666) were exercisable at 31 December
2016.
Share options outstanding at the end of the year have the
following expiry date and exercise prices:
Share options
------------- ----------------- -------------- ----------------
Exercise
price
in US$
per
Grant - vest Vesting year share options 2016 2015
------------- ----------------- -------------- ------- -------
2012 2013 0.007 61,012 66,737
2014 0.007 63,845 69,570
2015 0.007 78,932 84,657
2013-16 2014 3.887 62,934 74,663
2015 3.887 67,417 71,645
2016 3.887 67,417 80,145
2015-16 2015 0.006 10,134 17,228
2016 0.005 27,000 27,000
2016-19 2017 0.014 60,000 -
2018 0.014 60,000 -
2019 0.014 60,000 -
subject to market
2016- conditions 0.014 180,000 -
------------- ----------------- -------------- ------- -------
798,691 491,645
------------- ----------------- -------------- ------- -------
For the 180,000 options granted and vesting over the next three
years: The weighted average fair value of options granted during
the period determined using the Black-Scholes valuation model was
US$2.7437 per option. The significant inputs into the model were
the weighted average share price of US$2.633 at the grant date, the
exercise price shown above, dividend yield of nil, an expected
option life of three years, volatility of 41.76% based on the past
movement in the share price and an annual risk-free interest rate
of 4.25%. Where awards are granted with market conditions, the
services received from an employee (who satisfies all other vesting
conditions) are recognised, irrespective of whether the market
conditions are satisfied. The possibility that the share price
targets might not be achieved is taken into account when estimating
the fair value of the options at grant date. The fair value of the
180,000 options granted with market conditions attached has been
considered to be nil. See note 8 for the total expense recognised
in the income statement for share options granted to Directors and
employees.
18 Earnings per share
Basic earnings per share amounts are calculated by dividing
profit for the year attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares
outstanding during the year.
Diluted earnings per share amounts are calculated by dividing
the profit attributable to ordinary equity holders of the parent by
the weighted average number of ordinary shares outstanding during
the year plus the weighted average number of ordinary shares that
would be issued on the conversion of all the dilutive potential
ordinary shares into ordinary shares.
The following reflects the income and share data used in the
basic and diluted earnings per share computations.
2016 2015
US$'000 US$'000
--------------------------------------------- ---------- ----------
Profit attributable to ordinary shareholders 1,867 426
---------------------------------------------- ---------- ----------
Number Number
--------------------------------------------- ---------- ----------
Weighted average number of shares used in
basic EPS 18,714,690 18,699,923
Effects of:
Employee share options 300,875 265,444
---------------------------------------------- ---------- ----------
Weighted average number of shares used in
diluted EPS 19,015,565 18,965,367
---------------------------------------------- ---------- ----------
Basic earnings per share (in US$ cents per
share) 10.0 2.3
Diluted earnings per share (in US$ cents
per share) 9.8 2.2
---------------------------------------------- ---------- ----------
19 Subsequent events
There were no significant subsequent events since 31 December
2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UNUKRBUAORAR
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