TIDMESCH
RNS Number : 0931R
Escher Group Holdings PLC
19 September 2017
19 September 2017
Escher Group Holdings plc
Half year results
Escher Group Holdings plc (AIM: ESCH, 'Escher' or 'the Group'),
a world leading provider of point-of-service software for use in
the postal, retail and financial industries, has published its
results for the six months ended 30 June 2017.
Financial highlights
-- Revenue US$9.39m (H1 2016: US$12.34m)
o Software licence sales US$0.84m (H1 2016 $3.62m)
-- Adjusted EBITDA* of US$1.36m (H1 2016: US$3.35m)
-- Loss before tax US$0.03m (H1 2016: Profit before tax US$1.81m)
-- Basic loss per share US$0.5 cents per share (H1 2016: earnings of US$7.0 cents per share)
-- Operating expenses US$5.83m (H1 2016: US$6.39m)
-- Net cash at 30 June 2017 was US$0.1m (31 December 2016: US$0.1m)
Operational highlights
-- New licence sale of Escher's mobile platform and associated
services to world's largest postal organisation
-- Expansion of existing mobile solution for world-leading e-Commerce and Logistics company
-- Launch of Riposte platform on Android and iOS devices
-- Escher engaged by Middle-Eastern post-office to carry-out
major implementation project on the Riposte platform
-- Continued exploration of paths to market for Escher's
Licensing and Permitting technology, particularly in US
Liam Church, Chief Executive, said:
"Our licence sales in the first half were modest as compared to
those of H1 2016. Nevertheless, we were able to deliver US$1.4m in
adjusted EBITDA.
"Our customers' spending patterns mean that our traditional
business model remains inherently volatile. To meet our full-year
expectations, we will need to sign additional licence sales in H2
from our pipeline of opportunities.
"The investment in moving our Riposte platform to Android and
IOS devices has been keenly received by our customers, as evidenced
by the sale of the mobile licence in H1."
*Operating profit before, depreciation, amortisation, and share
based charge
Enquiries:
Escher www.eschergroupholdings.com +353 (0)1 254 5400
Liam Church, Chief Executive Officer
Clem Garvey, Chief Financial Officer
Fionnuala Higgins, Chief Commercial
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 / Chris Birt
The half year results announcement is available on the Group's
website: www.eschergroup.com.
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 Platform enables its customers to expand their
offerings, providing new services, reducing costs and increasing
efficiency.
The Riposte(R) Platform securely extends the retail branch
network. Escher's technology creates new revenue opportunities, it
streamlines operations and its flexibility allows it to be deployed
across multiple platforms and devices, giving the ultimate freedom
of choice when it comes to channel and hardware selection.
Escher's focus is to ensure the success of its customers by
delivering the very best in innovative technology for their
business.
Overview
Escher's first half results in 2017 were impacted by the lower
level of new software licence sales, as compared with H1 2016.
Revenue totalled US$9.39m (H1 2016: US$12.34m). Software licence
revenue totalled US$0.84m (H1 2016: US$3.62m). In 2016, 78% of the
year's licence revenue was realised in the first half of the
year.
Maintenance contracts grew to US$4.07m (H1 2016: US$4.05m).
Software Development and Consulting Services also posted growth at
US$3.06m (H1 2016 US$2.95m).
Support revenue in H1 2017 was US$1.42m (H1 2016: US$1.72m).
In H2 2016, the company carried out a restructuring to realign
its cost base with the changing nature of the business. This
permitted the company to achieve savings in cost of sales and in
operating expenses in H1 2017. Cumulatively, operating expenses and
cost of sales were US$9.19m (H1 2016 US$10.30m), decreasing by 11%.
Operating expenses were US$5.83m (H1 2016: US$6.39m).
Adjusted EBITDA for the first half of the year 2017 was US$1.36m
(H1 2016: US$3.35m), resulting in a small loss before income tax of
US$0.03m (H1 2016: profit before income tax US$1.81m).
Escher's strategy continues to be one of broadening its software
range and enhancing its customer offering by investing in its
existing software portfolio and new software ranges including
Digital (Licensing and Permitting), Interactive Services and
Enterprise Mobile software.
Current trading and outlook
The Company has a good pipeline of business. Maintenance,
Services and Support revenues remain strong.
While there is an adequate pipeline of opportunities to deliver
a material licence sale in H2, the spending patterns of our
traditional customer base are such that the timing of these sales
remains difficult to predict and can therefore impact the Company's
earnings in the short-term.
Operational review
Organisation
In the second half of 2016, the Group merged its Interactive
Services business with its Retail Services business to consolidate
these activities under a Postal and Retail Services unit and
decided that the focus of its Digital Services unit should
primarily be on developing licensing and permitting management
solutions, for which an attractive opportunity in the North
Americas was identified.
Postal and Retail Services
Opportunities in 2017 to achieve new, major licence sales of the
Riposte digital transaction management software are concentrated in
the second half.
Maintenance revenues continue to increase and constitute more
than $4m of the Company's revenues. This is the main constituent of
the recurring revenue which has brought more balance to the
business model.
The broadening of Escher's technological offerings to its postal
customers continued with new sales of its mobile platform and with
the expansion of its existing mobile deployments for one of the
world's largest logistics and e-commerce companies.
The need of Postal Organisations to enter into direct
relationships with e-Commerce end-users and improve consumer
experience has resulted in a significant increase in interest in
Escher's Loyalty platforms.
Digital Services - Licensing and Permitting
Escher's flagship deployment of its Licensing and Permitting
platform, the Irish national licensing platform "Licences.ie",
continues to gradually add government departments and other
licensing authorities to its client base.
Meanwhile, ongoing study of this activity in the US confirms the
pertinence of Escher's offer and the continuing growth of
opportunities in this market.
Financial review
Revenue
Overall revenue was down 24% to US$9.39m for the first half of
2017 (H1 2016: US$12.34m).
Licence revenue in H1 2017 was US$0.84m (H1 2016: US$3.62m).
Maintenance revenue has improved on the prior year at US$4.07m
(H1 2016: US$4.05m), which was due to a high level of maintenance
contract renewals.
Software development and consulting revenue increased by 4% to
US$3.06m (H1 2016: US$2.95m) with continuing high levels of service
provision to North American customers and growth in services
provided to Middle Eastern customers.
Support revenue decreased by 17% to US$1.42m (US$1.72m in H1
2016).
There were no significant impacts on the group's results in H1
2017 arising from fluctuations in exchange rates.
Revenue breakdown
US$'m H1 2017 H1 2016 Change H1 2017 H1 2016
% Contribution Contribution
to Group to Group
Revenue Revenue
-------------------------- -------- -------- ------- -------------- --------------
Once-off
-------------------------- -------- -------- ------- -------------- --------------
Software Licenses 0.84 3.62 -77% 9% 29%
-------------------------- -------- -------- ------- -------------- --------------
Software development
and consulting services 3.06 2.95 4% 33% 24%
-------------------------- -------- -------- ------- -------------- --------------
Recurring
-------------------------- -------- -------- ------- -------------- --------------
Maintenance 4.07 4.05 0% 43% 33%
-------------------------- -------- -------- ------- -------------- --------------
Support 1.42 1.72 -17% 15% 14%
-------------------------- -------- -------- ------- -------------- --------------
Total Revenue 9.39 12.34 -24% 100% 100%
-------------------------- -------- -------- ------- -------------- --------------
Gross profit
Gross profit for H1 2017 decreased by 28% to US$6.03m compared
to US$8.43m for H1 2016. The decrease of US$2.4m was mainly due to
reduction in high margin licence sales. This also impacted the
gross margin rate, which decreased to 64% for the six months to 30
June 2017 (H1 2016: 68%), with a lesser proportion of licence
revenue and more development and consulting revenue.
Operating expenses
Operating expenses decreased by 9% to US$5.83m (H1 2016:
US$6.39m) arising from restructuring undertaken in H2 2016.
The Group continued to focus on cost control, which resulted in
reduced administrative expenses to US$2.24m (H1 2016:
US$2.34m).
Research & development (R&D) decreased to US$1.61m in
2017 (H1 2016: US$2.23m). As a percentage of revenue, R&D spend
decreased to 17% (H1 2016: 18%). This decrease in R&D is due to
reduction in R&D staff levels following restructuring and with
developments moved to commercialisation stages.
Increases in sales and marketing expenses to US$1.98m (H1 2016:
US$1.82m) were also seen, linked to increased investment in
generating our revenue pipeline.
US$'m H1 2017 H1 2016 Movement 2017 % of 2016 % of
Revenue Revenue
-------------------------- -------- -------- --------- ---------- ----------
Research and development 1.61 2.23 -28% 17% 18%
-------------------------- -------- -------- --------- ---------- ----------
Sales and marketing 1.98 1.82 9% 21% 15%
-------------------------- -------- -------- --------- ---------- ----------
Administrative expenses 2.24 2.34 -4% 24% 19%
-------------------------- -------- -------- --------- ---------- ----------
Total 5.83 6.39 -9% 62% 52%
-------------------------- -------- -------- --------- ---------- ----------
Capitalisation and amortisation movements
The Group capitalised US$0.56m (H1 2016: US$0.66m) of R&D
costs in H1 2017. As core work on platform technology development
progresses, Escher is capitalising less of its R&D costs and
expects this trend to continue in H2 2017 and 2018.
Amortisation of US$0.98m was charged in H1 2017 (H1 2016:
US$0.98m). The net impact on the income statement of capitalisation
and amortisation was a charge of US$0.42m (H1 2016: US$0.32m).
R&D tax credits recognised in the first half of 2017 were
US$0.09m (H1 2016: US$0.15).
US$'m H1 2017 H1 2016 % change
------------------------------------ -------- -------- ---------
Additions
------------------------------------ -------- -------- ---------
RiposteTrEx 0.26 0.17 52%
------------------------------------ -------- -------- ---------
Riposte 0.30 0.49 -39%
------------------------------------ -------- -------- ---------
Total capitalisation 0.56 0.66 -16%
------------------------------------ -------- -------- ---------
Amortisation
------------------------------------ -------- -------- ---------
RiposteTrEx (0.32) (0.32) 1%
------------------------------------ -------- -------- ---------
Riposte (0.66) (0.66) 0%
------------------------------------ -------- -------- ---------
Total amortisation (0.98) (0.98) 0%
------------------------------------ -------- -------- ---------
Net charge on the income statement (0.42) (0.32) 33%
------------------------------------ -------- -------- ---------
Reconciliation of operating profit to Adjusted EBITDA
Adjusted EBITDA was down 59% to US$1.36m (H1 2016: US$3.35m).
Adjusted EBITDA represents operating profit before depreciation,
amortisation and share based charges. The decrease was mainly due
to the decrease in licence revenue partially offset by cost
savings.
US$'m H1 2017 H1 2016 Change % change
--------------------- -------- -------- ------- ---------
Operating profit 0.20 2.04 -1.84 -90%
--------------------- -------- -------- ------- ---------
Depreciation 0.09 0.15 -0.06 -40%
--------------------- -------- -------- ------- ---------
Amortisation 0.98 0.98 - 0%
--------------------- -------- -------- ------- ---------
EBITDA 1.27 3.17 -1.90 -60%
--------------------- -------- -------- ------- ---------
Share based payment 0.09 0.18 -0.09 -53%
--------------------- -------- -------- ------- ---------
Adjusted EBITDA 1.36 3.35 -1.99 -59%
--------------------- -------- -------- ------- ---------
Net finance costs
The continued reduction in bank debt was offset by increasing
interest rates, which resulted in net finance costs largely
unchanged at US$0.23m (H1 2016: US$0.23m). The amortisation of the
finance costs related to the Bank of Ireland (BOI) loan facility
remained at US$0.07m.
(Loss)/profit before income tax
Loss before income tax was US$0.03m (H1 2016: profit before
income tax US$1.81m). Adjusted profit before income tax, excluding
share based payments was US$0.06m (H1 2016: US$1.99m).
Income tax expense
Irrecoverable withholding taxes gave rise to a charge of
US$0.06m in H1 2017.
Earnings per share
Basic loss per share was US$0.5 cents per share (H1 2016:
earnings per share US$7.0 cents). Diluted loss per share was US$0.5
cents per share (H1 2016: Diluted earnings per share US$6.7
cents).
Dividend
The Group is not paying a half year dividend.
Cash flow
Net cash at the end of June 2017 was US$0.05m (December 2016:
US$0.06m). Cash at the end of June 2017 was US$5.55m (December
2016: US$6.06m) and borrowings were US$5.50m (December 2016:
US$6.00m).
Net cash at the end of H1 2017 improved over H1 2016 (net debt
US$2.68m), with strong cash conversion and the timing of customer
receipts.
Consolidated Income Statement
For the six months ended 30 June 2017
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
US$'000 US$'000 US$'000
Notes (Unaudited) (Unaudited) (Audited)
Revenue 5 9,390 12,340 22,411
Cost of sales (3,365) (3,913) (7,436)
------------ ------------ -------------
Gross profit 6,025 8,427 14,975
Operating expenses (5,827) (6,388) (12,109)
------------ ------------ -------------
Operating profit 198 2,039 2,866
Finance income 3 1 2
Finance costs (228) (233) (490)
------------ ------------ -------------
Net finance costs (225) (232) (488)
(Loss)/profit before income
tax (27) 1,807 2,378
Income tax expense (75) (491) (511)
------------ ------------ -------------
(Loss)/profit for the period (102) 1,316 1,867
------------ ------------ -------------
(Loss)/earnings per share
(US$ cent per share)
Basic 6 (0.5) 7.0 10.0
Diluted 6 (0.5) 6.7 9.8
Reconciliation of EBITDA and Six months Six months Year ended
adjusted ended 30 ended 30 31 December
June 2016 June 2015 2015
EBITDA ended 30 ended 30 31 December
June 2017 June 2016 2016
US$'000 US$'000 US$'000
(Unaudited) (Unaudited) (Audited)
Operating Profit 198 2,039 2,866
Depreciation 7 93 150 282
Amortisation 8 982 982 1,941
------------ ------------ -------------
EBITDA 1,273 3,171 5,089
Share options expense 85 180 281
Exceptional items - - 287
------------ ------------ -------------
Adjusted EBITDA 1,358 3.351 5,657
------------ ------------ -------------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2017
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
US$'000 US$'000 US$'000
(Unaudited) (Unaudited) (Audited)
(Loss)/profit for the period (102) 1,316 1,867
Other comprehensive income:
Items that may subsequently
be reclassified to the Income
Statement:
Currency translation differences 56 97 (348)
------------ ------------ -------------
Total other comprehensive income 56 97 (348)
------------ ------------ -------------
Total comprehensive income
for the period (46) 1,413 1,519
------------ ------------ -------------
The notes form an integral part of these condensed consolidated
interim financial statements
Consolidated Statement of Financial Position
As at 30 June 2017
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
Notes (Unaudited) (Unaudited) (Audited)
Assets
Non-current assets
Property, plant and equipment 7 194 344 218
Intangible assets 8 34,595 35,808 35,020
Deferred income tax assets 549 724 534
Investments in equity instruments 10 747 521 746
------------ ------------ ------------
Total non-current assets 36,085 37,397 36,518
------------ ------------ ------------
Current assets
Cash and cash equivalents 9 5,554 3,816 6,712
Trade and other receivables 7,103 9,248 6,055
Current income tax receivable - - -
------------ ------------ ------------
Total current assets 12,657 13,064 12,767
------------ ------------ ------------
Total assets 48,742 50,461 49,285
------------ ------------ ------------
Equity and liabilities
Issued capital 129 128 128
Other reserves 884 1,086 743
Retained earnings 9,317 8,868 9,419
Share premium 26,909 26,909 26,909
------------ ------------ ------------
Total equity 37,239 36,991 37,199
------------ ------------ ------------
Non-current Liabilities
Borrowings 9 4,500 5,388 4,954
Deferred income tax liabilities - - -
Provisions for other liabilities
and charges 22 22 21
------------ ------------ ------------
Total non-current liabilities 4,522 5,410 4,975
------------ ------------ ------------
Current liabilities
Borrowings 9 962 936 939
Trade and other payables 5,903 6,658 5,960
Current income tax payable 116 466 212
------------ ------------ ------------
Total current liabilities 6,981 8,060 7,111
Total liabilities 11,503 13,470 12,086
------------ ------------ ------------
Total equity and liabilities 48,742 50,461 49,285
------------ ------------ ------------
The notes form an integral part of these condensed consolidated
interim financial statements.
Consolidated Statement of Changes in Equity
Cumulative
foreign
currency
Equity share translation Retained
capital Share premium reserve Other reserves earnings Total equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
(Unaudited)
Balance at 1
January 2017 128 26,909 (1,918) 2,661 9,419 37,199
Loss for the
financial
period - - - - (102) (102)
Other
comprehensive
income - - 56 - - 56
Shares issued
under options 1 - - - - 1
Share based
payments - - - 85 - 85
------------- -------------- ------------- --------------- ---------- -------------
Balance at 30
June 2017 129 26,909 (1,862) 2,746 9,317 37,239
------------- -------------- ------------- --------------- ---------- -------------
(Unaudited)
Balance at 1
January 2016 128 26,909 (1,570) 2,380 7,552 35,399
Profit for the
financial
period - - - - 1,316 1,316
Other
comprehensive
income - - 97 - - 97
Share based
payments - - - 179 - 179
------------- -------------- ------------- --------------- ---------- -------------
Balance at 30
June 2016 128 26,909 (1,473) 2,559 8,868 36,991
------------- -------------- ------------- --------------- ---------- -------------
(Unaudited)
Profit for the financial
period - - - - 551 1,867
Other comprehensive income - - (445) - - (348)
Total comprehensive income - - (445) - 551 1,519
Share based payments - - - 102 - 281
---- ------- -------- ------ ------ -------
Balance at 31 December 2016 128 26,909 (1,918) 2,661 9,419 37,199
---- ------- -------- ------ ------ -------
The notes form an integral part of these condensed consolidated
interim financial statements
Consolidated Statement of Cash Flows
For the six months ended 30 June 2017
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
US$'000 US$'000 US$'000
(Unaudited) (Unaudited)) (Audited)
Cash flows from operating activities
Cash generated from operations 11 1,018 1,016 4,827
Interest received 3 1 2
Interest paid (136) (168) (348)
Income taxes paid (338) (244) (289)
R&D tax credit received - 234 -
------------ ------------- -------------
Net cash generated from operating
activities 547 839 4,192
------------ ------------- -------------
Cash flows from investing activities
Additions to intangible assets (557) (660) (1,346)
Acquisition of investments - (139) (251)
Government grant - - 254
Purchase of property, plant and
equipment (68) (109) (117)
------------ ------------- -------------
Net cash used in investing activities (625) (908) (1,460)
------------ ------------- -------------
Cash flows from financing activities
Borrowing costs - - (6)
Repayment of borrowings (500) (3,500) (4,000)
------------ ------------- -------------
Net cash(used in) financing activities (500) (3,500) (4,006)
------------ ------------- -------------
Net decrease in cash and cash
equivalents (578) (3,569) (1,274)
Cash and cash equivalents at
beginning of period 6,055 7,346 7,346
Foreign exchange adjustments 77 39 (17)
Net decrease in cash and cash
equivalents (578) (3,569) (1,274)
Cash and cash equivalents at
end of period 5,554 3,816 6,055
------------ ------------- -------------
The notes on pages 11 to 17 form an integral part of these
condensed consolidated interim financial statements
NOTES TO THE INTERIM FINANCIAL INFORMATION
For the six months ended 30 June 2017
1. General information
Escher Group Holdings plc and its wholly-owned subsidiaries
(collectively the "Group") are world-leading providers of retail
and message-based software solutions and services. The Group
develops, markets, sells and supports enterprise-wide software
applications for counter automation and distributed network
communication. The Group's principal customers are international
postal services. The Group services these customers from its
offices in Ireland, the United States, Singapore, South Africa, and
its branch in the United Kingdom.
The company was incorporated in the Republic of Ireland on 7
June 2007 as NG Postal Limited, a private company limited by
shares. On 14 September 2007, the company acquired the main
operating subsidiaries giving rise to the goodwill asset. The
company re-registered as a public limited company on 14 July 2011
and changed its name to Escher Group Holdings plc on that date. On
25 July 2011, the Group filed for an Initial Public Offering on the
London Stock Exchange plc's AIM Market. Admission to AIM occurred
on 8 August 2011.
The Company's registered office is 111 St Stephens Green, Dublin
2, Ireland.
2. Basis of preparation
The Group's condensed consolidated interim financial statements
included in this report have been prepared in accordance with
International Accounting Standard 34, Interim Financial Reporting
('IAS 34') as adopted by the European Union. These condensed
statements do not include all information required for full annual
financial statements and should be read in conjunction with the
consolidated financial statements for the year ended 31 December
2016 included in the Group's 2016 Annual Report which is available
on the Group website www.eschergroup.com. The condensed
consolidated interim financial statements presented do not
constitute full statutory accounts. Full statutory accounts for the
year ended 31 December 2016 will be filed with the Irish Registrar
of Companies in due course. The Audit Report on those statutory
accounts was unqualified.
The Group's condensed interim financial information for the six
months ended 30 June 2017 and the comparative figures for the six
months ended 30 June 2016 are unaudited. The financial information
presented for the year ended 31 December 2016 represents an
abbreviated version of the Group's financial statements for that
year.
The Group's condensed financial information is presented in US
Dollars (US$), rounded to the nearest thousand, which is the
functional currency of the Group.
A comprehensive review of the Group's performance for the six
months ended 30 June 2017 is included on pages 4 to 7 of this
document.
3. Going concern basis
The Group's forecasts and projections, taking account of
reasonable possible changes in trading performance, support the
conclusion that there is a reasonable expectation that the Company
and Group have adequate resources to continue in operational
existence for the foreseeable future, a period of not less than
twelve months from the date of this report. The Group therefore
continues to adopt the going concern basis in preparing its
consolidated interim financial statements.
4. Accounting policies
The Group's condensed interim financial information has been
prepared on the basis of the accounting policies, significant
judgements, key assumptions and estimates as set out in the Group's
annual report for the year ended 31 December 2016. The principal
risks and uncertainties faced by the Group were outlined in our
2016 annual report. The annual report is available on Escher's
website. The principal risks and uncertainties have remained
substantially the same for the current period.
5. 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 assess the performance of the segment based primarily
on measures of revenues, adjusted EBITDA and profit before income
tax. Adjusted EBITDA is used as it is an industry-wide standard and
it is calculated using operating profit before non-cash share based
charges, interest, tax, depreciation on property plant and
equipment and amortisation of intangible assets. These revenues
derive from the following main sources:
Analysis of revenue by category
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
US$'000 US$'000 US$'000
(Unaudited) (Unaudited) (Audited)
Software licenses 840 3,619 4,613
Software development and
consulting services 3,064 2,953 6,209
Maintenance 4,069 4,053 8,222
Support 1,417 1,715 3,367
------------ ------------ -------------
Revenue 9,390 12,340 22,411
------------ ------------ -------------
The entity is domiciled in the Republic of Ireland. The Group's
external revenues are derived from the following main geographic
locations:
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
US$'000 US$'000 US$'000
(Unaudited) (Unaudited) (Audited)
UK and Ireland 760 1,150 2,117
Other Europe 2,310 2,475 4,768
North & Latin America 4,023 3,948 7,769
Asia-Pacific region 677 3,513 4,570
Africa & Middle East 1,620 1,254 3,187
------------ ------------ -------------
Revenue 9,390 12,340 22,411
------------ ------------ -------------
During the period the Group derived revenues from the following
external customers (reporting segment region in parenthesis) which
individually represented 10% or more of total reported revenues for
that period:
Six months Six months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
% % %
(Unaudited) (Unaudited) (Audited)
Customer A (North & Latin
America) 40% 27% 30%
Customer B (Asia-Pacific
Region) 0% 23% 13%
% of total reported revenues 40% 50% 43%
The total of non-current assets other than deferred income tax
assets located in the Republic of Ireland at 30 June 2017 is
US$3.8m (June 2016: US$5.1m), and the total of non-current assets
located in other countries is US$31m (June 2016: US$31m).
6. Earnings per share
Basic (loss)/earnings per share amounts are calculated by
dividing (loss)/profit for the period attributable to ordinary
equity holders of the parent by the weighted average number of
ordinary shares outstanding during the period.
Diluted earnings per share amounts are calculated by dividing
the profit attributable to ordinary equity holders of the parent by
the weighted average number of ordinary shares outstanding during
the period plus the weighted average number of ordinary shares that
would be issued on the conversion of all the dilutive potential
ordinary shares into ordinary shares.
The following reflects the income and share data used in the
basic and diluted (loss)/earnings per share computations.
Six Months Six Months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
US$'000 US$'000 US$'000
(Unaudited) (Unaudited) (Audited)
(Loss)/profit attributable to
ordinary shareholders (102) 1,316 1,867
------------ ------------ -------------
Basic weighted number of shares 18,743,677 18,704,085 18,714,690
------------ ------------ -------------
Dilutive potential ordinary
shares:
Effects of employee share options 364,381 432,923 300,875
------------ ------------ -------------
Diluted weighted number of ordinary
shares 19,108,058 19,137,008 19,015,565
------------ ------------ -------------
Basic (loss)/earnings per share
(in US$ cents per share) (0.5) 7.0 10.0
------------ ------------ -------------
Diluted (loss)/earnings per
share (in US$ cents per share) (0.5) 6.9 9.8
------------ ------------ -------------
7. Property, plant and equipment
31 December
30 June 2017 2016
US$'000 US$'000
(Unaudited) (Audited)
Net book value at beginning of
the period 218 383
Additions 68 117
Depreciation (93) (282)
Exchange differences 1 -
------------- ------------
Net book value at end of period 194 218
------------- ------------
8. Intangible assets
At 30 June 2017 Other Intangible Total Intangible
Goodwill assets assets
US$'000 US$'000 US$'000
(Unaudited) (Unaudited) (Unaudited)
Net book value at 1 January
2017 29,671 5,349 35,020
Additions - 557 557
Amortisation charge - (982) (982)
Net book value at 30 June
2017 29,671 4,924 34,595
------------ ----------------- -----------------
At 31 December 2016 Other Intangible Total Intangible
Goodwill assets assets
US$'000 US$'000 US$'000
(Audited) (Audited) (Audited)
Net book value at 1 January
2016 29,853 6,198 36,051
Additions - 1,346 1,346
Government grants - (254) (254)
Amortisation charge - (1,941) (1,941)
Exchange differences (182) - (182)
---------- ----------------- -----------------
Net book value at 31 December
2016 29,671 5,349 35,020
---------- ----------------- -----------------
9. Analysis of net cash
31 December 30 June
2016 Movement 2017
US$'000 US$'000 US$'000
(Audited) (Unaudited) (Unaudited)
Cash and cash equivalents 6,055 (501) 5,554
Non-current borrowings (4,954) 454 (4,500)
Deferred finance costs (46) 46 -
------------ ------------ ------------
Non-current borrowings (5,000) 500 (4,500)
Current borrowings (939) (23) (962)
Deferred finance costs (61) 23 (38)
------------ ------------ ------------
Current borrowings (1,000) - (1,000)
------------ ------------ ------------
Total borrowings (6,000) 500 (5,500)
------------ ------------ ------------
Net cash 55 (1) 54
------------ ------------ ------------
Escher's long term debt has annual repayments of US$1m and
expires in 2018.
10. Financial assets
Available-for-sale financial assets include the following
classes of financial assets:
Six Months ended 30 June Six Months ended 30 June
2017 2016 Year ended 31 December 2016
--------------------------- ---------------------------
US$'000 US$'000 US$'000
---------------------------- -------------------------- --------------------------- ---------------------------
(Unaudited) (Unaudited) (Audited)
---------------------------- -------------------------- --------------------------- ---------------------------
Non-current assets
Investments carried at cost 495 382 495
Convertible loan notes 251 139 251
746 521 746
---------------------------- -------------------------- --------------------------- ---------------------------
In 2016, the Company made investments in the ordinary shares of
two companies (Deposify Limited and Circit Limited) of US$495,000
in consideration for the provision of services and licence
software. In addition to these investments, the Company invested in
convertible loan notes in both these companies in amount of
US$251,000. These loan notes will be convertible into Ordinary A
shares when agreed conditions have been met. To determine if an
available-for-sale financial asset is impaired, the Company
evaluates the duration and extent to which the fair value of the
asset is less than its cost, and the financial health of and
short-term business outlook for the investee.
11. Cash generated from operations
Six Months Six Months Year ended
ended 30 ended 30 31 December
June 2017 June 2016 2016
US$'000 US$'000 US$'000
(Unaudited) (Unaudited) (Audited)
(Loss)/profit before income
tax (27) 1,807 2,378
Adjustments for:
Depreciation 93 150 282
Amortisation 982 982 1,941
Amortisation of deferred finance
costs 69 69 138
Finance income (3) (1) (2)
Finance expense 159 164 352
Foreign exchange translation (69) (15) (11)
Employee share based payments 85 180 281
Non-cash revenue transactions - - (495)
(Increase)/decrease in trade
and other receivables (348) (2,698) 342
Decrease in trade and other
payables 77 378 (379)
------------ ------------ -------------
Cash generated from operations 1,018 1,016 4,827
------------ ------------ -------------
12. Post balance sheet events
There have been no material events subsequent to the period end,
which have not been reflected in the interim financial
information.
13. Contingent liabilities
The Group is not aware of any major changes with regard to
contingent liabilities in comparison with the situation as of 31
December 2016.
14. Related party transactions
Details of related party transactions in respect of the year
ended 31 December 2016 are contained in Note 26 to the consolidated
financial statements of the Group's 2016 annual report. The Group
continued to enter into transactions in the normal course of
business with its associates and other related parties during the
period. There were no transactions with related parties in the
first half of 2017 or changes to transactions with related parties
disclosed in the 2016 consolidated financial statements that had a
material effect on the financial position or the performance of the
Group.
15. Cautionary statement
This document contains certain forward-looking statements with
respect of the financial condition, results, operations and
businesses of Escher Group Holdings plc. These statements and
forecasts involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future.
There are a number of factors that could cause the actual results
or developments to differ materially from those expressed or
implied by these forward looking statements and forecasts. Nothing
in this document should be construed as a profit forecast.
16. Copies of Interim Report
Copies of the interim financial statements are available from
the Company at its office at 111 St Stephens Green, Dublin 2,
Ireland. The interim financial information document will also be
available on the Company's website www.eschergroup.com
17. Release of half yearly condensed financial statements
The Group condensed financial information was approved for
release by a subcommittee of the Board of directors on 19 September
2017.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR DVLFFDKFEBBB
(END) Dow Jones Newswires
September 19, 2017 02:00 ET (06:00 GMT)
Escher Grp (LSE:ESCH)
Historical Stock Chart
From Apr 2024 to May 2024
Escher Grp (LSE:ESCH)
Historical Stock Chart
From May 2023 to May 2024