TIDMPEN
RNS Number : 3392H
Pennant International Group PLC
12 March 2018
FOR IMMEDIATE RELEASE 12 March 2018
PENNANT INTERNATIONAL GROUP PLC
Preliminary Results for the Year Ended 31 December 2017
Solid 2017 performance; year of transition; positive trading
momentum maintained
Board strengthened; work resumed on major contract; well-placed
for further growth
This announcement contains information which, prior to its
disclosure by this announcement, was inside information for the
purposes of the Market Abuse Regulation
Pennant International Group plc ("Pennant" or the "Group"), the
AIM quoted supplier of integrated technical training and support
solutions, products and services, which train and assist engineers
in regulated defence and civilian sectors, is pleased to announce
its Preliminary Results for the Year Ended 31 December 2017.
Commenting on the Group's performance, Simon Moore, Chairman,
said:
"2017 has been a year of dynamic and transformational change for
the Group, led by new management, engaged staff and supportive
customers. The management team, led by Phil Walker, is building
strong, and sustainable new partnerships and further strengthening
existing relationships with customers across the globe, including
Australia, South East Asia, the Middle East, Canada and the United
States.
A key element of that transformation has been targeted
investment throughout 2017 in people, product development and
infrastructure to enable the Group to achieve long-term growth.
It has also been important to ensure delivery in the short-term.
In the Group's Interim Results announcement, published on 11
September 2017, the Board highlighted a challenge on a major
contract which had the potential to impact the Group's trading
negatively against market expectations for 2017.
I am pleased that the Group was able to realise a number of
opportunities to mitigate this risk during the final quarter,
delivering revenue of GBP18.07 million and operating profit of
GBP1.81 million for 2017."
Financial Summary
-- Group revenues of GBP18.07 million (2016: GBP17.2 million);
-- Gross profit margin maintained at 40% (2016: 40%);
-- Profit before taxation was GBP1.81 million (2016: GBP1.90 million);
-- Earnings before interest, tax and amortisation (excluding
exceptional costs) was GBP2.11 million (2016: GBP2.20 million);
-- Profit before taxation and one-off exceptional costs
associated with the termination of the appointment of the former
CEO was GBP1.93 million (2016: GBP1.90 million);
-- Profit for the year attributable to shareholders was GBP1.53
million (2016: GBP1.92 million);
-- Basic earnings per share of 4.65p (2016: 6.48p)
-- Group net assets at year-end of GBP13.33 million (2016: GBP11.82 million);
-- Net cash at year-end of GBP1.50 million (2016: GBP3.52 million); nil borrowings;
-- No final dividend (2016: GBPNIL); dividend policy remains
under review given projected working capital and investment
requirements for 2018;
-- Three-year order book at year-end stood at GBP34 million (2016: GBP38 million).
Operational Summary
Contracts
-- Ongoing production and delivery of training aids in
fulfilment of a second phase contract with undisclosed Middle
Eastern customer worth in excess of GBP7 million;
-- Full delivery of training aids in accordance with a contract
with another undisclosed Middle Eastern customer worth GBP6
million;
-- Renewal of contract for logistical support at RNAS Yeovilton
for a further five years, with gross revenues anticipated to be in
the region of GBP1.25 million over the life of the contract;
-- Amendment and extension to the existing contract with BAE
Systems Australia for the maintenance of training equipment at
Defence Aeroskills Training Academy at Wagga Wagga. Contract
extended by two years to cover 2020 and 2021, securing AUD $3.5
million to contracted revenues;
-- Ongoing delivery of a contract with Lockheed Martin to
provide Rotary Wing Rear Crew Winch Trainer in support of Rear Crew
Training for the United Kingdom Military Flight Training
System;
-- A new contract with Kawasaki Heavy Industries in Japan in
relation to the Thomson-East Coast Line (Singapore's new mass rapid
transport rail project);
-- New contracts with Network Rail for control room simulators;
-- Multiple sales of Genskills Trainers to new customers in Abu
Dhabi, China, Russia and Singapore;
-- Amendment to the Group's contract with the Canadian
Department of National Defence, adding C$3.8 million to the
contract value for the remaining term to September 2018;
-- An Omega PS software sale to Fleetway, Stadler Rail and Damen Shipyards Group;
-- The sale of additional training aids to an undisclosed Middle
Eastern customer for GBP1.15 million (for delivery during 2017 and
2018).
Investment
-- Over GBP1 million invested or committed during 2017 (in
addition to the GBP1 million investment in 2016) to acquire and
improve real estate and facilities:
o GBP500,000 invested to create additional office space and
establish a secure fibre-optic link between the Group's two
Cheltenham sites;
o additional land acquired for GBP255,000 (totalling 11,000 sq.
ft) in front of the recently purchased commercial premises at
Staverton Connection.
-- Production space has tripled to over 30,000 sq. ft.; 30 new
desk spaces have been created, with new purchasing, inspection,
test and stores facilities built; and a prototyping and
demonstration facility established.
-- Targeted product development (for new and existing products)
that will significantly broaden the Group's offering and create
market opportunities, including: Basic Helicopter Maintenance
Trainer; Virtual Training Suite (including Loadmaster and
Jumpmaster trainers and a re-engineered Virtual Parachute Training
System); Omega PS - tablet deployable version and upgraded user
interface.
Management
-- Successful transition of Phil Walker from CFO to CEO.
-- Appointment of David Clements as Commercial & Risk
Director and Gary Barnes as Head of Finance.
-- Other key appointments made, including an Operations Manager
(overseeing key engineering, production, software and programme
management functions) and a Training Specialist (a former Deputy
Head of Oman Military Technological College).
-- Management Committee established comprising the Group's
senior managers to support the Executive Directors in the
day-to-day running of the business.
Board Appointments
The Group Board is to be further strengthened by the appointment
of John Ponsonby and Gary Barnes as Non-Executive Director and
Finance Director respectively. These appointments will become
effective on 1 April 2018.
Mr Ponsonby is a former Managing Director of Leonardo
Helicopters UK (a division of AgustaWestland) and, prior to that,
was the commanding officer of the RAF's No 22 (Training) Group. Mr
Barnes is the Group's present Head of Finance, with operational
oversight of all financial matters; he has 21 years' experience
within the Pennant business and since 2017 has attended Board
meetings as the executive responsible for financial reporting.
Major Contract Update
As explained in the interim results announcement on 11 September
2017, performance of one of the Group's contracts with a major UK
prime contractor for electro-mechanical trainers and courseware had
been delayed due to a re-scoping of the contract requirements. The
re-scoping has now been completed and work re-commenced on the
contract. The Group expects to conclude the legal formalities of
the contract restatement imminently and this will be announced in
due course.
On current trading and prospects, Mr Moore concluded:
"Prospects for the global economy in 2018 remain uncertain, and
there are budgetary pressures in certain defence markets, however,
Pennant is nimble, agile and responsive and so is well placed to
maximise opportunities as the economic situation develops.
We are experiencing an encouraging start to the current
financial year and anticipate that the full year results for 2018
will be first-half weighted owing to the adoption of IFRS 15 (as
further explained in the Trading Update announcement made on 12
February 2018).
Prospects remain positive. The contracted order book, valued at
more than GBP34 million, underpins good forward visibility of
revenues well into 2020. In addition, the pipeline of active bids
and other opportunities remains healthy."
Enquiries:
Pennant International www.pennantplc.co.uk
Group plc
Philip Walker, CEO
David Clements, Commercial
& Risk Director +44 (0) 1452 714 914
WH Ireland Limited www.whirelandplc.com
Mike Coe / Ed Allsopp +44 (0) 117 945 3470
Walbrook PR (Financial paul.vann@walbrookpr.com
PR)
Paul Vann / Tom Cooper +44 (0)20 7933 8780
Mob: +44 (0)7768 807631
CHAIRMAN'S STATEMENT
Year of change
2017 was a year of dynamic and transformational change for the
Group, led by new management, engaged staff and supportive
customers.
The management team, led by Phil Walker, is building strong and
sustainable new partnerships and further strengthening existing
relationships with customers across the globe, including Australia,
South East Asia, the Middle East, Canada and the United States.
Customers of Pennant include some of the world's leading
original equipment manufacturers, governments and colleges, who are
working closely with us to embed Pennant solutions into their
training programmes for the long term.
The next generation of engineers around the world are being
trained on a growing range of Pennant products and services.
Our traditional, bespoke engineered products are being
increasingly supplemented by virtual reality solutions offering
state of the art training to our customers across a widening range
of industries.
Our software business is deeply engrained in the maintenance and
supportability standard operating procedures of defence forces
around the world. Entering the new financial year, we are launching
a major overhaul of our software-offering to make it even more
compelling as a market leading solution.
None of this change would have been possible without the
dedication of the Pennant team, which is committed to excellence
and the delivery of world class, market leading, technology driven
solutions.
Key financials
In the year ended 31 December 2017 the Group delivered
consolidated revenues of GBP18.07 million (2016: GBP17.21 million),
driven by the continued production and delivery of work on the
Middle East contracts.
The Group posted consolidated operating profit of GBP1.81
million (2016: operating profit of GBP1.90 million), which is
broadly in line with the prior year and was achieved despite a
prime contractor-led rescoping of one of the Group's major
contracts (announced in September 2017) which resulted in revenue
deferral, and exceptional termination costs (of circa GBP125,000)
incurred on the departure of the former CEO.
Consolidated net assets increased to GBP13.33 million (2016:
GBP11.82 million) reflecting the profitable trading.
Basic earnings per share were 4.65p compared to the reported
earnings per share of 6.48p for the same period last year.
Dividends
The Board fully appreciates the importance of dividend payments.
However, notwithstanding the trading performance, positive outlook
and nil borrowings, the Directors have concluded that it is in the
Company's and shareholders' current best interests to retain cash
for working capital and investment in accordance with plans for
future growth.
The Board will therefore not be recommending the payment of a
final dividend for the year ended 31 December 2017. However, it
will continue to review dividend policy throughout 2018 based on
trading performance and working capital requirements.
Governance
The Board believes in robust corporate governance. We have
worked closely with our advisors and in 2017 continued to
strengthen our governance frameworks to ensure strong governance
throughout the Group, appropriate for a company of our size. We
have established appropriate risk management procedures and keep
key risks to the Group under continual review.
Our people
I would also like to take this opportunity to thank all staff
across the Group for their hard work and dedication throughout this
transitional year. Their commitment and drive to ensure that the
business continues to deliver the high-quality solutions that our
customers require and expect, operating under tight timescales, are
key factors in maintaining and enhancing the ongoing and
longstanding relationships we have with our customers.
Outlook
Prospects for the global economy in 2018 remain uncertain, and
there are budgetary pressures in defence markets. However, Pennant
is nimble, agile and responsive and so is well placed to maximise
opportunities as the economic situation develops.
We are experiencing an encouraging start to the current
financial year and anticipate that the full year results for 2018
will be first-half weighted owing to the adoption of IFRS 15 (as
further explained in the Trading Update announcement made on 12
February 2018).
Prospects remain positive. The contracted order book, valued at
more than GBP34 million, underpins good forward visibility of
revenues well into 2020. In addition, the pipeline of active bids
and other opportunities remains healthy.
CHIEF EXECUTIVE'S REVIEW
Solid performance
I am pleased to report that 2017 produced a healthy result for
Pennant. In what was a transitional year, the Group overcame all
the challenges faced and, most importantly, each Group company made
a positive contribution to the overall performance.
Our interim report, released in September, announced positive
results for the first half of the year but also highlighted a prime
contractor-led rescoping of one of our major contracts that would
impact revenues for the year.
I am delighted that the Group was able to realise a number of
other opportunities which largely mitigated the effect of the
reduced revenues on that major contract. Most importantly, the
Group has continued to meet contractual milestones, delivering
products and services, and securing payments in line with all
performance obligations, which is testament to the dedication and
hard work of all employees and the resilience of the business,
enabling the positive momentum of the business as a whole to be
maintained.
Financial review
The gross profit margin for the period was 40% (2016: 40%)
reflecting the consistent mix of products and services delivered
during the year.
Adjusted operating profit margin (taking into account one-off
exceptional termination costs of GBP125,000) was maintained at 11%,
demonstrating robust financial controls.
Cash used in operations amounted to GBP1.0 million (2016: cash
used in operations GBP0.2 million), reflecting the phases of
production on several major programmes. The Group continues to have
nil borrowings with a healthy year-end cash balance of GBP1.50
million (2016: GBP3.52 million).
The Group's tax position shows a tax charge of GBP275,409 (2016:
GBP17,691), which relates to overseas subsidiaries and the release
of deferred tax. Profits generated from operations utilised GBP2.2
million of UK tax losses and the Group now has unrelieved tax
losses carried forward of GBP0.3 million (2016: GBP2.5
million).
Research and Development tax credits claimed in the UK during
the year amounted to GBP0.3 million (2016: GBP0.1 million) with
further significant claims on current projects expected to be made
during 2018.
The year-end order book stood at GBP33 million (2016: GBP38
million), of which GBP13 million (2016: GBP18 million) is scheduled
for delivery within one year. Of the total order book, 65% (2016:
70%) is denominated in sterling and 30% (2016: 25%) is denominated
in Canadian dollars. Any movement of sterling to the Canadian
dollar would potentially impact the OmegaPS business.
CHIEF EXECUTIVE'S REVIEW
Operational review
Strengthening the team
The year has seen a number of key appointments, including David
Clements as Commercial & Risk Director. David is a solicitor
with extensive experience in corporate and commercial law gained
acting for AIM- quoted and private companies.
With over 21 years' accounting experience, Gary Barnes was
promoted from Group Financial Controller to Head of Finance in
March 2017. In this role, Gary has been responsible for operational
oversight of all financial matters and has reported direct to the
Board. With effect from 1 April 2018 Gary will join the Board as
Finance Director.
The Group also appointed a new Operations Manager (overseeing
key engineering, production, software and programme management
functions), a Training Specialist (a former Deputy Head of Oman
Military Technological College), and a new Purchasing Manager.
These appointments have strengthened the Group's commercial,
risk and compliance framework; financial function; training
delivery, product development and user insight; and procurement
process and supplier management, together underlining the Group's
continued commitment to investing in people.
Product innovation
During the year the Group has focused on targeted product
development and as a result work has commenced on a range of new
products and enhancements that will significantly broaden the
product offering and create commercial opportunities, including the
following:
-- Basic Helicopter Maintenance Trainer - new mechanical trainer
-- Generic Stores Loading Trainer - new procedural trainer
-- Virtual Parachute Training System - redesign and improvement of existing product
-- Genskills Mk 2 - additional functionality added to existing product
-- Virtual Training Suite - including Loadmaster and Jumpmaster trainers
-- Point of Maintenance - deployable tablet version of OmegaPS
-- Virtual Aircraft Training System - upgrade to model and graphics
In line with our core strategic objectives these product
innovations will significantly expand the Group's market coverage
and improve the overall customer proposition.
Infrastructure
The Group has continued to modernise and improve its facilities
with over GBP1m invested or committed during 2017, in addition to
the GBP1m investment in 2016.
In July 2017, the Board committed to spending a further
GBP500,000 on the Group's facilities to create additional office
space and establish a secure fibre-optic link between its two
Cheltenham sites. This work has been successfully concluded within
budget and provides essential infrastructure for growth. With an
expanded workforce, the new offices are already being fully
utilised.
In October 2017 the Group acquired land for GBP255,000
(totalling 11,000 sq. ft) in front of the recently acquired
commercial premises at Staverton Connection. The purchase provides
additional space for expansion and crucially secures the entire
site.
Following these investments: the Group's production capacity has
tripled to over 30,000 sq. ft; 30 new desk spaces have been
created; new purchasing, inspection, test and stores facility have
been built; and a prototyping and demonstration facility has been
established.
Our people
Our employees remain core to our future business success.
Without talented people, there are no product innovations or
technical solutions.
During 2017 we strengthened and grew the teams across our UK,
Canadian and Australian operations. To attract the right people
with the specialist skills required, we strive to be an employer
that offers an exciting and rewarding place to work.
The Group is committed to providing meaningful and challenging
roles for our employees. It is critical to our success to engender
a working environment that encourages innovation and supports a
culture of delivering world class products and services that meet
customers' needs.
The Group's employees have diverse experience and educational,
professional and cultural backgrounds and we respect equality of
opportunity for all existing and prospective employees without
unlawful or unfair discrimination and regardless of age, gender,
background or ethnic origin.
The Pennant team has responded exceptionally well to the
challenges presented during the year and the Group's strong
reputation and longstanding relationships with many of its
customers are the measure of its success.
Operational review (cont.)
New contract awards and operational achievements during the year
are set out below:
-- ongoing production and delivery of training aids in
fulfilment of a second phase contract with an undisclosed Middle
Eastern customer worth in excess of GBP7 million;
-- ongoing production and successful delivery of training aids
in accordance with a contract with another undisclosed Middle
Eastern customer worth GBP6 million;
-- performance of a major contract affected by delays in the
provision to the Group of programme-critical customer data and
requirements;
-- renewal of contract for logistical support at RNAS Yeovilton
for a further five years, with gross revenues anticipated to be in
the region of GBP1.25 million over the life of the contract;
-- amendment and extension to the existing contract with BAE
Systems Australia for the maintenance of training equipment at
Defence Aeroskills Training Academy at Wagga Wagga. Contract
extended by two years to cover 2020 and 2021, securing AUD $3.5
million to contracted revenues;
-- ongoing delivery of a contract with Lockheed Martin to
provide Rotary Wing Rear Crew Winch Trainer in support of Rear Crew
Training for the United Kingdom Military Flight Training
System;
-- a new contract with Kawasaki Heavy Industries in Japan in
relation to the Thomson-East Coast Line (Singapore's new mass rapid
transport rail project);
-- new contracts with Network Rail for control room simulators;
-- multiple sales of Genskills Trainers to new customers in Abu
Dhabi, China, Russia and Singapore;
-- amendment to the Group's contract with the Canadian
Department of National Defence, adding C$3.8 million to the
contract value for the remaining term to September 2018;
-- an Omega PS software sale to Fleetway, Stadler Rail and Damen Shipyards Group; and
-- the sale of additional training aids to an undisclosed Middle
Eastern customer for GBP1.15 million (for delivery during 2017 and
2018).
Engineering future growth
The underlying strengths of Pennant - our long-term customer
relationships, our specialist services and our quality-assured
reputation - remain the solid foundation of our offerings across
the Group.
The continued investment in infrastructure, people and products
means that the business has the tools required to drive future
growth.
The Group has significant ongoing orders that will provide work
through 2018, 2019 and beyond and there are further prospects with
both existing and new customers many of which represent substantial
opportunities for new business. Although the timing of major
contract awards has proved to be both difficult to predict and
beyond the Group's control, we remain confident that the following
factors point towards significant potential for growth:
-- new capital equipment platforms for land, naval, air and rail
are becoming more sophisticated and complex thereby increasing the
requirement for training;
-- the use of 'real' equipment for training has safety
implications, is expensive and often impractical;
-- there is a continuing trend for defence forces and other
organisations to outsource training services, including updating
their training devices;
-- global training regulations are harmonising and the ability
to utilise synthetic training is increasing; and
-- global expenditure on defence and rail is on the rise.
The Board is confident that it can continue to increase revenues
through organic growth and will continue to explore ways to
complement our organic growth strategy by pursuing opportunities
for corporate development, including strategic acquisitions,
partnerships and joint ventures, carefully considering options to
expand our capabilities and service offering such as the teaming
agreements entered into during the year with US and UK
partners.
The delivery achieved in the year, together with operational
improvements implemented across the Group, provides a firm platform
for future performance.
CONSOLIDATED INCOME STATEMENT
FOR THE YEARED 31 DECEMBER 2017
Notes 2017 2016
Continuing operations GBP GBP
Revenue 18,069,960 17,211,455
Cost of sales (10,906,992) (10,249,472)
--------------- -------------
Gross profit 7,162,968 6,961,983
Administrative expenses (5,356,895) (5,057,374)
--------------- -------------
Operating profit 1,806,073 1,904,609
Finance costs (2,693) (9,051)
Finance income 5,371 7,781
--------------- -------------
Profit before taxation 1,808,751 1,903,339
Taxation (charge) / credit 1 (275,409) 17,691
--------------- -------------
Profit for the year attributable
to the equity
holders of the parent 1,533,342 1,921,030
=============== =============
Earnings per share
Basic 4.65p 6.48p
Diluted 4.30p 6.06p
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2017
Notes 2017 2016
GBP GBP
Profit for the year attributable
to the equity
holders of the parent 1,533,342 1,921,030
Other comprehensive income:
Items that will not be reclassified
to profit and loss
Property impairment - (276,212)
Deferred tax - 46,956
Items that may be reclassified
to profit or loss
Exchange differences on translation
of foreign operations (85,055) 413,469
Total comprehensive income for
the period attributable to the
equity holders of the parent 1,448,287 2,105,243
============ ===========
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER
2017
Notes 2017 2016
GBP GBP
Non-current assets
Goodwill 962,133 964,159
Other intangible assets 231,048 295,780
Property, plant and equipment 3,702,851 2,642,448
Deferred tax assets 310,699 482,989
----------- -----------
Total non-current assets 5,206,731 4,385,376
----------- -----------
Current assets
Inventories 74,629 -
Trade and other receivables 10,153,650 7,820,128
Cash and cash equivalents 1,502,655 3,517,541
Asset held for sale - 575,000
----------- -----------
Total current assets 11,730,934 11,912,669
----------- -----------
Total assets 16,937,665 16,298,045
Current liabilities
Trade and other payables 2,808,009 3,824,925
Current tax liabilities 80,600 1,610
Obligations under finance leases 4,945 4,070
Deferred revenue 124,848 162,500
----------- -----------
Total current liabilities 3,018,402 3,993,105
----------- -----------
Net current assets 8,712,532 7,919,564
Non-current liabilities
Obligations under finance leases 26,895 31,957
Deferred revenue 6,325 18,403
Deferred tax liabilities 307,916 287,625
Warranty provisions 250,000 150,000
----------- -----------
Total non-current liabilities 591,136 487,985
----------- -----------
Total liabilities 3,609,538 4,481,090
Net assets 13,328,127 11,816,955
=========== ===========
Equity
Share capital 1,647,177 1,649,277
Share premium account 2,677,571 2,685,971
Capital redemption reserve 200,000 200,000
Retained earnings 7,982,360 6,347,343
Translation reserve 332,012 417,067
Revaluation reserve 489,007 517,297
Total equity 13,328,127 11,816,955
=========== ===========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2017
Capital
Share Share redemption Treasury Retained Translation Revaluation Total
capital Premium reserve shares earnings reserve reserve equity
(see (see (Note (see (see
below) below) 29) below) below)
---------- ---------- ----------- -------------- ------------- ------------- ------------- -----------------
GBP GBP GBP GBP GBP GBP GBP GBP
At 1 January
2016 1,402,100 8,400 200,000 (418,225) 4,230,206 3,598 839,157 6,265,236
Profit for
the year - - - - 1,921,030 - - 1,921,030
Other
comprehensive
income - - - - - 413,469 (276,212) 137,257
---------- ---------- ----------- -------------- ------------- ------------- ------------- -----------------
Total
comprehensive
income 1,402,100 8,400 200,000 (418,225) 6,151,236 417,067 562,945 8,323,523
Issue of
ordinary
shares 247,177 2,677,571 - 418,225 - - - 3,342,973
Recognition
of share
based payment - - - - 103,503 - - 103,503
Transfer
from
revaluation
reserve - - - - 46,956 - - 46,956
Deferred
tax on
revaluation - - - - 45,648 - (45,648) -
---------- ---------- ----------- -------------- ------------- ------------- ------------- -----------------
At 1 January
2017 1,649,277 2,685,971 200,000 - 6,347,343 417,067 517,297 11,816,955
Profit for
the year - - - - 1,533,342 - - 1,533,342
Other
comprehensive
income - - - - - (85,055) - (85,055)
---------- ---------- ----------- -------------- ------------- ------------- ------------- -----------------
Total
comprehensive
income 1,649,277 2,685,971 200,000 - 7,880,685 332,012 517,297 13,265,242
Cancellation
of B and
C shares (2,100) (8,400) - - - - - (10,500)
Recognition
of share
based payment - - - - 73,385 - - 73,385
Transfer
from
revaluation
reserve - - - - 28,290 - (28,290) -
At 31 December
2017 1,647,177 2,677,571 200,000 - 7,982,360 332,012 489,007 13,328,127
========== ========== =========== ============== ============= ============= ============= =================
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2017
Notes 2017 2016
GBP GBP
Net cash from operations (988,536) (249,248)
------------ ------------
Investing activities
Interest received 5,371 7,781
Purchase of intangible assets (227,108) (28,438)
Purchase of property, plant and
equipment (1,282,088) (1,086,896)
Proceeds from sale of motor vehicles - 12,491
Proceeds from sale of available-for-sale
investments 575,000 4,314
Net cash used in investing activities (928,825) (1,090,748)
------------ ------------
Financing activities
Proceeds from sale of ordinary
shares (10,500) 3,342,973
Net funds from obligations under
finance leases (4,187) 13,842
Net cash used in financing activities (14,687) 3,356,815
------------ ------------
Net increase in cash and cash
equivalents (1,932,048) 2,016,819
Cash and cash equivalents at
beginning of year 3,517,541 1,123,456
Effect of foreign exchange rates (82,838) 377,266
Cash and cash equivalents at
end of year 1,502,655 3,517,541
============ ============
Abbreviated notes to the consolidated financial statements for
the year ended
31 December 2017
1. Taxation
2017 2016
GBP GBP
Recognised in the income statement
Current UK tax expense 52,218 3,511
Foreign tax 34,385 64,657
In respect of prior years (3,511) (82,156)
---------- ----------
83,092 (13,988)
Deferred tax expense relating
to origination and reversal of
temporary differences 189,398 17,720
Exchange rate difference 2,919 -
Effect of tax rate change on opening
balance - (21,423)
---------- ----------
Total tax expense 275,409 (17,691)
========== ==========
Reconciliation of effective tax
rate
Profit before tax 1,809,754 1,903,339
---------- ----------
Tax at the applicable rate of
19.25% (2016: 20%) 348,378 380,666
Tax effect of expenses not deductible
in determining taxable profit 19,788 57,418
Additional deduction for R&D expenditure (77,974) -
Tax effect of utilisation of losses - -
not previously recognised
Foreign tax credits 2,250 29,265
Effect of different tax rates
of subsidiaries operating in other
jurisdictions - 4,437
Effect of change of deferred tax
rate 8,853 (33,529)
Losses arising not recognised in (40,612) -
deferred tax
Utilisation of unrecognised deferred
tax (2,169) (367,922)
Effect of adjustments for prior
years - (82,156)
Other differences 16,895 (5,870)
---------- ----------
Total tax expense 275,409 (17,691)
========== ==========
2. Publication of non-statutory accounts
The financial information set out in this preliminary
announcement does not constitute statutory accounts as defined in
the Companies Act 2006.
The statement of financial position at 31 December 2017 and
income statement, statement of changes in equity, statement of cash
flows and associated notes for the year ended have been extracted
from the Company's 2017 financial statements upon which the auditor
opinion is unqualified.
Copies of the 2017 Annual Report and Accounts will be
distributed to shareholders shortly and will be available on the
Company's website: www.pennantplc.co.uk. Further copies may be
obtained by contacting the Company Secretary at Pennant Court,
Staverton Technology Park, Cheltenham GL51 6TL.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DDGDXLGBBGIB
(END) Dow Jones Newswires
March 12, 2018 03:00 ET (07:00 GMT)
Pennant (LSE:PEN)
Historical Stock Chart
From Apr 2024 to May 2024
Pennant (LSE:PEN)
Historical Stock Chart
From May 2023 to May 2024