TIDMYCO
RNS Number : 6141S
YCO Group PLC
14 September 2010
14 September 2010
YCO Group Plc
("YCO", the "Company" or the "Group")
Interim Results for the 6 months ended 30 June 2010
YCO Group plc, a leading provider of specialist services to superyachts, today
announces its unaudited Interim Results for the 6 months ended 30 June 2010.
Financial Highlights
¡ Revenue up 9% to GBP11.8m (H1 2009: GBP10.9m)
¡ Gross Profit increased by 27% to GBP3.9m (H1 2009: GBP3.1m)
¡ PBT increased to GBP533,000 (H1 2009: Loss of GBP0.6m)
¡ Earnings per share up to 0.8p (H1 2009: Loss of 1.24p)
Operational Highlights
¡ Return to profitability as a result of:
o successful restructuring programme throughout 2009
o encouraging performance from the brokerage division as market conditions
recovered
¡ Improved performance in all Client Services divisions:
o Management income up 15%
o Sales income up 65%
o Charter income increased more than 3.5 times
¡ Number of contracted yachts up 8%
Charlie Birkett, Chief Executive, commented:
"The Board is pleased to announce a strong set of interim results, which reflect
the benefits of the restructuring programme undertaken in 2009 and continues the
Group's growth trend reported at the full year results."
"During the first half of 2010, the Group has continued to reduce costs where
practical and to improve operational and cost efficiencies in all areas,
leveraging gradually improving market conditions to enable an encouraging
performance in almost all areas of operations. The Board remains confident
regarding the outlook for the Group for the remainder of 2010 and next year."
For further information please contact:
YCO Group plc Tel: +377 93 50 12 12
Charlie Birkett, Chief Executive
Arbuthnot Securities Limited Tel: + 44 (0)20 7012 2000
Tom Griffiths / Ed Gay
Media Enquiries - Hudson Sandler Tel: + 44 (0)20 7796 4133
Charlie Jack / Nathan Field
YCO GROUP PLC INTERIM RESULTS 30 JUNE 2010
Chairman's Statement
I am delighted to report that as a result of the ongoing and successful
turnaround strategy, the Group has delivered a strong set of results for the
first half of 2010 and significantly increased the level of profit before tax.
The significant restructuring programme that was initiated in 2009 enabled the
brokerage and management divisions to perform ahead of the Board's expectations.
In addition, these divisions also benefited from strengthened teams and
improving market conditions in the superyacht market.
The Company looks forward to building on the achievements of the past 12 months'
efficiencies and leveraging a gradually improving luxury tourism market, while
exploring opportunities to expand the Group's reach globally and strengthen
YCO's coverage in growing and emerging yachting markets. In order to achieve
optimum operational and cost efficiencies, the Board will continue to review the
Group's cost structure and composition.
With some exciting projects in the pipeline, we approach the outcome of the
second half of the year with confidence and look forward to building on the
successes of the first six months.
I would also like to welcome to the Board Ian Petts, who joined as Finance
Director in August 2010.
On behalf of the Board, I would like to thank all our staff for their continued
professionalism and dedication, which has been critical in returning the Group
to financial health.
Peter Jay
Non Executive Chairman
14 September 2010
YCO GROUP PLC INTERIM RESULTS 30 JUNE 2010
Chief Executive's Statement
For the first six months of 2010 the Group has delivered a strong and profitable
performance and ahead of the Board's expectations. Key factors driving the
performance were improving market conditions and the benefit from the
restructuring programme initiated in 2009. In particular, the brokerage and
chartering divisions performed well.
DIVISIONAL OVERVIEW
BROKERAGE
¡ YCO Brokerage maintained its position as a leading superyacht sales and
charter operation. It showed a strong improvement in performance, with revenue
across yacht sales and charter more than doubling. This was mainly due to
strengthened brokerage teams and signs of a gradual recovery in the market.
Encouragingly, the performance of the charter division was up on the same period
for 2008, which was a more typical year for yacht charter, but before the effect
of the economic downturn.
MANAGEMENT
¡ YCO Management continued its stable performance, increasing its market share
of the superyacht management market while improving operational efficiency and
margins.
CREW RECRUITMENT
¡ YCO Crew continued to operate satisfactorily in a competitive marketplace and
perform ahead of the Board's expectations. The division now operates from
headquarters in Monaco, although the division maintains its offices in Antibes
and Palma with the latter office having performed particularly well in the first
half of 2010.
YACHT FUEL SERVICES
¡ Yacht Fuel Services was profitable in the first half. However, as it operates
in an increasingly competitive market, this had a detrimental effect on the
operating margins. Operating profit was slightly down on the same period last
year, due to fewer vessels travelling out and returning from the Caribbean,
which impacted the sales in the first quarter of the year.
YACHT HELP GROUP
¡ Yacht Help Group reported a weak performance compared to the other divisions,
and as a part of the Group's restructuring the Gibraltar Yacht Help Group office
was closed and replaced with a successful sub-agency structure with a lower cost
base. Going forward, the Board considers that Yacht Help Group should be able to
produce higher margins.
CURRENT TRADING AND OUTLOOK
The Board is pleased to see that the benefits of the restructuring programme and
the ongoing turnaround translated into continued profitability for the Group and
in particular, in the significantly improved performance of the higher margin
Brokerage division.
The Group will continue to strive to improve efficiency in all areas of the
business and move ahead of the competition in our service offering to our
clients.
The ongoing strategy for sales and charter is to leverage the strong performance
and to maintain the growth rate achieved during the period. The sales market
shows some signs of gradual recovery and the division has some promising
projects in the pipeline.
Over the coming months, the yacht management division will benefit from the
completion of major build projects for which it has already won the management
contracts. The division continues to invest in the training of its staff in
order to maintain its leading position in the market, as well as upgrading
online management software YCO LIVE to improve further the efficiencies of
real-time, paperless yacht management.
After a review of operations, YCO Crew's senior management has moved from
Antibes to Monaco to be integrated further with YCO Management and to enhance
the service offering to the Company's managed yachts.
In order to further strengthen the service offering from the Group's own Yacht
Management division, the Group is exploring the potential benefits of
re-branding the Yacht Help Group division to bring it in line with YCO
Management's brand. Following the success of the sub-agency operation in
Gibraltar referred to above, the Group is now exploring the opportunity of
expanding the division's reach through a network of similar sub-agents
worldwide. This network would be co-ordinated centrally from Monaco by the
existing multi-lingual yacht concierge team.
The Company continues to invest in innovative IT solutions for the Yacht
Management and Brokerage divisions as well as investing in strengthening our
teams. The Group will continue to evaluate its composition and looks forward to
building further on our achievements to date, and in particular, a successful
outcome for the second half of the year.
Charlie Birkett
Chief Executive Officer
14 September 2010
YCO GROUP PLC INTERIM RESULTS 30 JUNE 2010
Consolidated Income Statement
for the six months ended 30 June 2010
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | Six months | | Six months | | Year ended |
| | | | | to | | to | | 31 December |
| | | | | 30 June | | 30 June | | 2009 |
| | | | | 2010 | | 2009 | | Audited |
| | | | | Unaudited | | Unaudited | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| | | Notes | | GBP'000s | | GBP'000s | | GBP'000s |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Revenue | | | | 11,827 | | 10,895 | | 24,694 |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Cost of sales | | | (7,878) | | (7,783) | | (17,704) |
+------------------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | -------- | | -------- | | -------- |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Gross profit | | | 3,949 | | 3,112 | | 6,990 |
+------------------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Administrative expenses | | (3,410) | | (3,681) | | (6,908) |
+--------------------------------+--+--------------+-+--------------+-+--------------+
| | | | | -------- | | -------- | | -------- |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Operating | | | 539 | | (569) | | 82 |
| profit/(loss) | | | | | | | |
+------------------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Finance income | | | 3 | | - | | 5 |
+------------------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Finance costs | | | (9) | | (27) | | (56) |
+------------------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | -------- | | -------- | | -------- |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Profit/(loss) before tax | | 533 | | (596) | | 31 |
+--------------------------------+--+--------------+-+--------------+-+--------------+
| | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Income tax charges | | (149) | | - | | (20) |
+--------------------------------+--+--------------+-+--------------+-+--------------+
| | | | | -------- | | -------- | | -------- |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Profit/(loss) for the period | 384 | | (596) | | 11 |
| from continuing operations | | | | | |
| attributable to equity | | | | | |
| shareholders | | | | | |
+-----------------------------------+--------------+-+--------------+-+--------------+
| | | | | ------- | | ------- | | ------- |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Earnings/(loss) per share | | | | | | |
+--------------------------------+--+--------------+-+--------------+-+--------------+
| | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Basic | | 8 | | 0.80 | | (1.24) | | 0.02 |
| (pence) | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| Diluted | | 8 | | 0.80 | | (1.24) | | 0.02 |
| (pence) | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
| | | | | | | | | |
+-----------+------------+-------+--+--------------+-+--------------+-+--------------+
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2010
+-----------+-------+-------+----+--------------+--+------------+--+------------+
| | | | | Six months | | Six months | | Year |
| | | | | ended | | | | ended |
| | | | | 30 June | | ended | | 31 |
| | | | | 2010 | | 30 June | | December |
| | | | | Unaudited | | 2009 | | 2009 |
| | | | | | | Unaudited | | Audited |
+-----------+-------+-------+----+--------------+--+------------+--+------------+
| | | | | GBP'000s | | GBP'000s | | GBP'000s |
+-----------+-------+-------+----+--------------+--+------------+--+------------+
| | | | | | | | | |
+-----------+-------+-------+----+--------------+--+------------+--+------------+
| Profit/(loss) for the | | 384 | | (596) | | 11 |
| period | | | | | | |
+---------------------------+----+--------------+--+------------+--+------------+
| Other comprehensive | | | | | | |
| income | | | | | | |
+---------------------------+----+--------------+--+------------+--+------------+
| Currency translation | | (50) | | 104 | | (52) |
| differences | | | | | | |
+---------------------------+----+--------------+--+------------+--+------------+
| | | -------- | | -------- | | -------- |
+---------------------------+----+--------------+--+------------+--+------------+
| Total comprehensive | | 334 | | (492) | | (41) |
| income for the period | | | | | | |
+---------------------------+----+--------------+--+------------+--+------------+
| | | -------- | | -------- | | -------- |
+---------------------------+----+--------------+--+------------+--+------------+
| Total comprehensive | | | | | | |
| income attributable to : | | | | | | |
+---------------------------+----+--------------+--+------------+--+------------+
| equity shareholders of | | 334 | | (492) | | (41) |
| the company | | | | | | |
+---------------------------+----+--------------+--+------------+--+------------+
| | | ------- | | ------- | | ------- |
+---------------------------+----+--------------+--+------------+--+------------+
| | | | | | | |
+-----------+-------+-------+----+--------------+--+------------+--+------------+
Consolidated Statement of Financial Position
as at 30 June 2010
+-------------------------+--+----+----------+---------------+--------------+------------------+
| | Notes | | As at | As at | As at |
| | | | 30 June 2010 | 30 June 2009 | 31 December 2009 |
| | | | Unaudited | Unaudited | Audited |
+-------------------------+-------+----------+---------------+--------------+------------------+
| | | | GBP'000s | GBP'000s | GBP'000s |
+-------------------------+-------+----------+---------------+--------------+------------------+
| Assets | | | | | |
+-------------------------+-------+----------+---------------+--------------+------------------+
| Non-current assets | | | | |
+---------------------------------+----------+---------------+--------------+------------------+
| | | | | |
+---------------------------------+----------+---------------+--------------+------------------+
| Property, plant and equipment | | 420 | 740 | 618 |
+---------------------------------+----------+---------------+--------------+------------------+
| Goodwill | 6 | | 15,233 | 15,333 | 15,333 |
+-------------------------+-------+----------+---------------+--------------+------------------+
| Intangibles | | | 235 | 310 | 243 |
+-------------------------+-------+----------+---------------+--------------+------------------+
| | | | ------- | ------- | ------- |
+-------------------------+-------+----------+---------------+--------------+------------------+
| | | | 15,888 | 16,383 | 16,194 |
+-------------------------+-------+----------+---------------+--------------+------------------+
| | | | ------- | ------- | ------- |
+-------------------------+-------+----------+---------------+--------------+------------------+
| Current assets | | | | |
+---------------------------------+----------+---------------+--------------+------------------+
| Inventories | | 3 | 10 | 4 |
+---------------------------------+----------+---------------+--------------+------------------+
| Trade and other receivables | | 3,738 | 5,901 | 5,205 |
+---------------------------------+----------+---------------+--------------+------------------+
| Cash and cash equivalents | | 786 | 157 | 560 |
+---------------------------------+----------+---------------+--------------+------------------+
| | | | ------- | ------- | ------- |
+----------------------------+----+----------+---------------+--------------+------------------+
| | | | 4,527 | 6,068 | 5,769 |
+----------------------------+----+----------+---------------+--------------+------------------+
| | | | ------- | ------- | ------- |
+----------------------------+----+----------+---------------+--------------+------------------+
| Current liabilities | | | | | |
+----------------------------+----+----------+---------------+--------------+------------------+
| Trade and other payables | | | 4,619 | 7,832 | 6,606 |
+----------------------------+----+----------+---------------+--------------+------------------+
| Financial liabilities - | | | 22 | 22 | 22 |
| borrowings and | | | | | |
| interest bearing loans | | | | | |
+----------------------------+----+----------+---------------+--------------+------------------+
| Tax payable | | | 169 | | 20 |
| | | | | - | |
+----------------------------+----+----------+---------------+--------------+------------------+
| | | | ------- | ------- | ------- |
+----------------------------+----+----------+---------------+--------------+------------------+
| | | | 4,810 | 7,854 | 6,648 |
+----------------------------+----+----------+---------------+--------------+------------------+
| | | | | | |
+----------------------------+----+----------+---------------+--------------+------------------+
| Net current liabilities | | | (283) | (1,786) | (879) |
+----------------------------+----+----------+---------------+--------------+------------------+
| | | | | | |
+----------------------------+----+----------+---------------+--------------+------------------+
| Non-current liabilities | | | | | |
+----------------------------+----+----------+---------------+--------------+------------------+
| Financial liabilities - | | | | | |
| borrowings and | | | | | |
+----------------------------+----+----------+---------------+--------------+------------------+
| interest bearing loans | | | (7) | (29) | (18) |
+----------------------------+----+----------+---------------+--------------+------------------+
| | | | ------- | ------- | ------- |
+----------------------------+----+----------+---------------+--------------+------------------+
| Net assets | | | 15,598 | 14,568 | 15,297 |
+----------------------------+----+----------+---------------+--------------+------------------+
| | | | ------ | ------ | ------ |
+----------------------------+----+----------+---------------+--------------+------------------+
| Equity | | | | | |
+----------------------------+----+----------+---------------+--------------+------------------+
| Capital and reserves | | | | | |
+----------------------------+----+----------+---------------+--------------+------------------+
| Called up share capital | | | 168 | 168 | 168 |
+----------------------------+----+----------+---------------+--------------+------------------+
| Share premium | | 15,209 | 14,959 | 15,209 |
+---------------------------------+----------+---------------+--------------+------------------+
| Retained earnings/(loss) | | 133 | (858) | (251) |
+---------------------------------+----------+---------------+--------------+------------------+
| Other reserves | | 162 | 195 | 195 |
+---------------------------------+----------+---------------+--------------+------------------+
| Currency translation reserve | | (74) | 104 | (24) |
+---------------------------------+----------+---------------+--------------+------------------+
| | | ------- | ------- | ------- |
+---------------------------------+----------+---------------+--------------+------------------+
| Total equity | | 15,598 | 14,568 | 15,297 |
+---------------------------------+----------+---------------+--------------+------------------+
| | | ------ | ------ | ------ |
+---------------------------------+----------+---------------+--------------+------------------+
| | | | | | | |
+-------------------------+--+----+----------+---------------+--------------+------------------+
Consolidated Statement of Changes in Equity
For the six months ended 30 June 2010
+-------------+----------+----------+----------+----------+-------------+----------+
| | Share | Share | Retained | Other | Translation | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | capital | premium | earnings | reserves | reserve | Total |
+-------------+----------+----------+----------+----------+-------------+----------+
| | GBP'000s | GBP'000s | GBP'000s | GBP'000s | GBP'000s | GBP'000s |
+-------------+----------+----------+----------+----------+-------------+----------+
| As at 1 | 168 | 15,209 | (251) | 195 | (24) | 15,297 |
| January | | | | | | |
| 2010 | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| Profit | - | - | 384 | - | - | 384 |
| after tax | | | | | | |
| for the | | | | | | |
| period | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| Exchange | - | - | - | (33) | - | (33) |
| difference | | | | | | |
| expensed | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| Translation | - | - | - | | (50) | (50) |
| reserve | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | -------- | -------- | -------- | ------- | ------- | ------- |
+-------------+----------+----------+----------+----------+-------------+----------+
| As at 30 | 168 | 15,209 | 133 | 162 | (74) | 15,598 |
| June 2010 | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | -------- | -------- | -------- | ------- | ------- | ------- |
+-------------+----------+----------+----------+----------+-------------+----------+
| | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| As at 1 | 168 | 14,959 | (262) | 195 | 28 | 15,088 |
| January | | | | | | |
| 2009 | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| Loss after | - | - | (596) | - | - | (596) |
| tax for the | | | | | | |
| period | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| Translation | - | - | - | - | 76 | 76 |
| reserve | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | -------- | -------- | ------- | ------ | ------- | ------- |
+-------------+----------+----------+----------+----------+-------------+----------+
| As at 30 | 168 | 14,959 | (858) | 195 | 104 | 14,568 |
| June 2009 | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | -------- | -------- | ------- | ------ | ------- | ------- |
+-------------+----------+----------+----------+----------+-------------+----------+
| | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| As at 1 | 168 | 14,959 | (262) | 195 | 28 | 15,088 |
| January | | | | | | |
| 2009 | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| Expenses | - | 250 | - | - | - | 250 |
| recovered | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| Profit | - | - | 11 | - | - | 11 |
| after tax | | | | | | |
| for the | | | | | | |
| year | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| Translation | - | - | - | - | (52) | (52) |
| reserve | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | ------ | ------- | ------ | ------ | ------ | ------- |
+-------------+----------+----------+----------+----------+-------------+----------+
| As at 31 | 168 | 15,209 | (251) | 195 | (24) | 15,297 |
| December | | | | | | |
| 2009 | | | | | | |
+-------------+----------+----------+----------+----------+-------------+----------+
| | ------ | ------- | ------ | ------ | ------ | ------- |
+-------------+----------+----------+----------+----------+-------------+----------+
Consolidated Statement of Cash Flows
For the six months ended 30 June 2010
+--------------------------+------+------------------+------------+-------------+
| | | Six | Six | Year ended |
| | | months | months to | 31 December |
| | | to 30 | 30 June | 2009 |
| | | June | 2009 | Audited |
| | | 2010 | Unaudited | |
| | | Unaudited | | |
+--------------------------+------+------------------+------------+-------------+
| | Note | GBP'000s | GBP'000s | GBP'000s |
+--------------------------+------+------------------+------------+-------------+
| | | | | |
+--------------------------+------+------------------+------------+-------------+
| Cash flows from | 9 | 367 | (445) | (13) |
| operating activities | | | | |
+--------------------------+------+------------------+------------+-------------+
| Finance costs | | (9) | (27) | (56) |
+--------------------------+------+------------------+------------+-------------+
| | | ------- | ------- | ------- |
+--------------------------+------+------------------+------------+-------------+
| Net cash | | | | |
| inflow/(outflow)from | | 358 | (472) | (69) |
| operating activities | | | | |
+--------------------------+------+------------------+------------+-------------+
| | | | | |
+--------------------------+------+------------------+------------+-------------+
| Cash flows from | | | | |
| investing activities | | | | |
+--------------------------+------+------------------+------------+-------------+
| Interest received | | 3 | - | 5 |
+--------------------------+------+------------------+------------+-------------+
| Purchase of intangibles | | (67) | (137) | (204) |
+--------------------------+------+------------------+------------+-------------+
| Purchase of plant and | | (20) | (50) | (82) |
| equipment | | | | |
+--------------------------+------+------------------+------------+-------------+
| Proceeds from sale of | | | | |
| tangible assets | | 15 | - | 46 |
+--------------------------+------+------------------+------------+-------------+
| | | ------- | ------- | ------- |
+--------------------------+------+------------------+------------+-------------+
| Net cash from investing | | (69) | (187) | (235) |
| activities | | | | |
+--------------------------+------+------------------+------------+-------------+
| | | | | |
+--------------------------+------+------------------+------------+-------------+
| Cash flows from | | | | |
| financing activities | | | | |
+--------------------------+------+------------------+------------+-------------+
| Loan (repaid | | (52) | (28) | 38 |
| to)/received from | | | | |
| related parties | | | | |
| | | | | |
+--------------------------+------+------------------+------------+-------------+
| Bank loan repaid | | - | (15) | (1) |
+--------------------------+------+------------------+------------+-------------+
| Repayment of finance | | (11) | - | (25) |
| lease | | | | |
+--------------------------+------+------------------+------------+-------------+
| | | ------- | ------- | ------- |
+--------------------------+------+------------------+------------+-------------+
| Net cash from financing | | (63) | (43) | 12 |
| activities | | | | |
+--------------------------+------+------------------+------------+-------------+
| | | ------- | ------- | ------- |
+--------------------------+------+------------------+------------+-------------+
| Net cash | | 226 | (702) | (292) |
| inflow/(outflow) | | | | |
+--------------------------+------+------------------+------------+-------------+
| | | | | |
+--------------------------+------+------------------+------------+-------------+
| Cash and cash | | | | |
| equivalents at the | | 560 | 859 | 859 |
| beginning of the period | | | | |
| | | | | |
+--------------------------+------+------------------+------------+-------------+
| Effects of exchange rate | | | | |
| changes on the balance | | | | |
| of cash held in foreign | | - | - | (7) |
| currencies | | | | |
+--------------------------+------+------------------+------------+-------------+
| | | ------- | ------- | ------- |
+--------------------------+------+------------------+------------+-------------+
| Represented by : | | | | |
+--------------------------+------+------------------+------------+-------------+
| Cash and cash | | 786 | 157 | 560 |
| equivalents | | | | |
+--------------------------+------+------------------+------------+-------------+
| | | ------ | ------ | ------ |
+--------------------------+------+------------------+------------+-------------+
YCO GROUP PLC INTERIM RESULTS 30 JUNE 2010
Notes to the Interim Financial Information
1. General information
YCO Group Plc is a company incorporated in England and Wales and quoted on the
Alternative Investment Market of the London Stock Exchange.
2. Basis of preparation
This consolidated interim financial information has been prepared in accordance
with International Financial Reporting Standards ("IFRS") as adopted by the
European Union and on the historical cost basis, using the accounting policies
which are consistent with those set out in the Company's Annual Report and
Accounts for the year ended 31 December 2009. This interim financial information
for the six months to 30 June 2010, which complies with IAS 34 'Interim
Financial Reporting', was approved by the Board on 14 September 2010.
3. Significant accounting policies
Except as described below, the accounting policies applied are consistent with
those of the annual ?nancial statements for the year ended 31 December 2009, as
described in those annual ?nancial statements.
Taxes on income in the interim periods are accrued using the tax rate that would
be applicable to expected total annual earnings.
The following new standards and amendments to standards are mandatory for the
?rst time for the ?nancial year beginning 1 January 2010, but are not currently
relevant for the Group.
¡ IFRS 3 (revised), 'Business combinations', and consequential amendments to IAS
27, 'Consolidated and separate financial statements', IAS 28, 'Investments in
associates', and IAS 31, 'Interests in joint ventures', are effective
prospectively to business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning on or after 1
July 2009.
¡ IFRIC 17, 'Distributions of non-cash assets to owners', effective for annual
periods beginning on or after 1 July 2009.
¡ IFRIC 18, 'Transfers of assets from customers', effective for transfer of
assets received on or after 1 July 2009.
¡ 'Additional exemptions for first-time adopters' (Amendment to IFRS 1) was
issued in July 2009. The amendments are required to be applied for annual
periods beginning on or after 1 January 2010. This is not relevant to the Group,
as it is an existing IFRS preparer.
¡ Improvements to International Financial Reporting Standards 2009 were issued
in April 2009. The effective dates vary standard by standard but most are
effective 1 January 2010.
The following new standards, new interpretations and amendments to standards and
interpretations have been issued but are not effective for the financial year
beginning 1 January 2010 and have not been early adopted:
¡ IFRS 9, 'Financial instruments', issued in December 2009. This addresses the
classification and measurement of financial assets. The Group is assessing
whether there will be any impact on the accounting for its financial assets. The
standard is not applicable until 1 January 2013 but is available for early
adoption.
¡ Revised IAS 24, 'Related party disclosures', issued in November 2009. It
supersedes IAS 24, 'Related party disclosures', issued in 2003. The revised IAS
24 is required to be applied from 1 January 2011. Earlier application, in whole
or in part, is permitted.
¡ 'Classification of rights issues' (Amendment to IAS 32), issued in October
2009. The amendment should be applied for annual periods beginning on or after 1
February 2010. Earlier application is permitted.
¡ 'Prepayments of a minimum funding requirement' (Amendments to IFRIC 14),
issued in November 2009 is effective for annual periods beginning 1 January
2011. Earlier application is permitted.
¡ IFRIC 19, 'Extinguishing financial liabilities with equity instruments'. This
clarifies the requirements of IFRSs when an entity renegotiates the terms of a
financial liability with its creditor and the creditor agrees to accept the
entity's shares or other equity instruments to settle the financial liability
fully or partially. The interpretation is effective for annual periods beginning
on or after 1 July 2010. Earlier application is permitted.
¡ Improvements to International Financial Reporting Standards 2010 were issued
in May 2010. The effective dates vary standard by standard but most are
effective 1 January 2010.
4. Segmental analysis
The chief operating decision-maker has been identi?ed as the senior management.
They review the Group's internal reporting in order to assess performance and
allocate resources. Management has determined the operating segments based on
these reports.
The senior management considers the business from both a geographic and service
perspective. From a service perspective, management assesses the performance of
support services and client services.
The senior management assesses the performance of the operating segments based
on a measure of adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA). This measurement basis excludes the effects of
non-recurring expenditure from the operating segments, such as restructuring
costs, legal expenses and impairments when the impairment is the result of an
isolated, non-recurring event. Interest income and expenditure are not included
in the result for each operating segment that is reviewed by the senior
management.
Other information provided, except as noted below, to the senior management is
measured in a manner consistent with that in the ?nancial statements.
+--------------------------------------+-----------+----------+----------+
| | Six months period to 30 |
| | June 2010 |
+--------------------------------------+---------------------------------+
| | Support | Client | Total |
| | Services | services | |
+--------------------------------------+-----------+----------+----------+
| Segment results | GBP'000s | GBP'000s | GBP'000s |
+--------------------------------------+-----------+----------+----------+
| Revenue | 7,818 | 4,302 | 12,120 |
+--------------------------------------+-----------+----------+----------+
| Inter company | (293) | - | (293) |
+--------------------------------------+-----------+----------+----------+
| | | | |
+--------------------------------------+-----------+----------+----------+
| Revenue | 7,525 | 4,302 | 11,827 |
+--------------------------------------+-----------+----------+----------+
| | | | |
+--------------------------------------+-----------+----------+----------+
| Operating profit before | 65 | 720 | 785 |
| depreciation, amortisation and | | | |
| restructuring costs | | | |
+--------------------------------------+-----------+----------+----------+
| Depreciation of tangibles | (19) | (79) | (98) |
+--------------------------------------+-----------+----------+----------+
| Amortisation of intangibles | (100) | (48) | (148) |
+--------------------------------------+-----------+----------+----------+
| Tangible asset scrapped | (72) | - | (72) |
+--------------------------------------+-----------+----------+----------+
| Goodwill impairment | - | (100) | (100) |
+--------------------------------------+-----------+----------+----------+
| Operating profit/(loss) | | | 539 |
+--------------------------------------+-----------+----------+----------+
| Net finance expense | | | (6) |
+--------------------------------------+-----------+----------+----------+
| | | | |
| Profit before taxation | | | 533 |
+--------------------------------------+-----------+----------+----------+
| | | | |
+--------------------------------------+-----------+----------+----------+
| Segment assets | | | |
+--------------------------------------+-----------+----------+----------+
| Property, plant and equipment | 51 | 369 | 420 |
+--------------------------------------+-----------+----------+----------+
| Intangible assets | 2,764 | 12,704 | 15,468 |
+--------------------------------------+-----------+----------+----------+
| Other assets | 2,281 | 2,246 | 4,527 |
+--------------------------------------+-----------+----------+----------+
| | 5,096 | 15,319 | 20,415 |
+--------------------------------------+-----------+----------+----------+
+--------------------------------------+-----------+----------+----------+
| | Six months period to 30 |
| | June 2009 |
+--------------------------------------+---------------------------------+
| | Support | Client | Total |
| | services | services | |
+--------------------------------------+-----------+----------+----------+
| Segment results | GBP'000s | GBP'000s | GBP'000s |
| | | | |
+--------------------------------------+-----------+----------+----------+
| Revenue | 8,683 | 2,668 | 11,351 |
+--------------------------------------+-----------+----------+----------+
| Inter company | (456) | - | (456) |
+--------------------------------------+-----------+----------+----------+
| | 8,227 | 2,668 | 10,895 |
+--------------------------------------+-----------+----------+----------+
| | | | |
+--------------------------------------+-----------+----------+----------+
| Operating profit/(loss) before | 46 | (401) | (355) |
| depreciation, amortisation, and | | | |
| restructuring costs | | | |
+--------------------------------------+-----------+----------+----------+
| Depreciation of tangibles | (19) | (98) | (117) |
+--------------------------------------+-----------+----------+----------+
| Amortisation of intangibles | - | (97) | (97) |
+--------------------------------------+-----------+----------+----------+
| Operating profit/ (loss) | 27 | (596) | (569) |
+--------------------------------------+-----------+----------+----------+
| Net finance expense | | | (27) |
+--------------------------------------+-----------+----------+----------+
| Loss before taxation | | | (596) |
+--------------------------------------+-----------+----------+----------+
| | | | |
+--------------------------------------+-----------+----------+----------+
| Segment assets | | | |
+--------------------------------------+-----------+----------+----------+
| Property, plant and equipment | 156 | 584 | 740 |
+--------------------------------------+-----------+----------+----------+
| Intangible assets | 2,889 | 12,754 | 15,643 |
+--------------------------------------+-----------+----------+----------+
| Other assets | 3,318 | 2,750 | 6,068 |
+--------------------------------------+-----------+----------+----------+
| | 6,363 | 16,088 | 22,451 |
+--------------------------------------+-----------+----------+----------+
+------------------------------------+------------+----------+----------+
| | 12 months period to 31 December |
| | 2009 |
+------------------------------------+----------------------------------+
| | Support | Client | Total |
| | Services | Services | |
+------------------------------------+------------+----------+----------+
| Segment results | GBP'000s | GBP'000s | GBP'000s |
+------------------------------------+------------+----------+----------+
| | | | |
+------------------------------------+------------+----------+----------+
| Revenue | 18,235 | 7,336 | 25,571 |
+------------------------------------+------------+----------+----------+
| Inter company | (796) | (81) | (877) |
+------------------------------------+------------+----------+----------+
| | | | |
+------------------------------------+------------+----------+----------+
| Revenue | 17,439 | 7,255 | 24,694 |
+------------------------------------+------------+----------+----------+
| | | | |
+------------------------------------+------------+----------+----------+
| Operating profit/(loss) before | | | |
| depreciation, amortisation, and | 87 | 436 | 523 |
| restructuring costs | | | |
+------------------------------------+------------+----------+----------+
| Depreciation of tangibles | (31) | (153) | (184) |
+------------------------------------+------------+----------+----------+
| Amortisation of intangibles | (28) | (229) | (257) |
+------------------------------------+------------+----------+----------+
| Operating profit/(loss) | 28 | 54 | 82 |
+------------------------------------+------------+----------+----------+
| Net finance expense | | | (51) |
+------------------------------------+------------+----------+----------+
| Profit before taxation | | | 31 |
+------------------------------------+------------+----------+----------+
| | | | |
+------------------------------------+------------+----------+----------+
| Segment assets | | | |
+------------------------------------+------------+----------+----------+
| Property, plant and equipment | 144 | 474 | 618 |
+------------------------------------+------------+----------+----------+
| Intangible assets | 2,864 | 12,712 | 15,576 |
+------------------------------------+------------+----------+----------+
| Other assets | 3,752 | 2,017 | 5,769 |
+------------------------------------+------------+----------+----------+
| | 6,760 | 15,203 | 21,963 |
+------------------------------------+------------+----------+----------+
The geographical segment analysis consists of Europe, Americas and the rest of
the world.
Six months to 30 June 2010:
+------------------------+----------+----------+-----------+-----------+
| | | | | |
| | Europe | Americas | Rest of | Total |
| | | | the world | |
+------------------------+----------+----------+-----------+-----------+
| | GBP'000s | GBP'000s | GBP'000s | GBP'000s |
+------------------------+----------+----------+-----------+-----------+
| | | | | |
+------------------------+----------+----------+-----------+-----------+
| Revenue | 6,236 | 2,159 | 3,432 | 11,827 |
+------------------------+----------+----------+-----------+-----------+
| | | | | |
+------------------------+----------+----------+-----------+-----------+
| Total assets | 20,415 | - | - | 20,415 |
+------------------------+----------+----------+-----------+-----------+
| | | | | |
+------------------------+----------+----------+-----------+-----------+
| Capital expenditure | 87 | - | - | 87 |
+------------------------+----------+----------+-----------+-----------+
+------------------------+----------+----------+-----------+-----------+
| Six months to 30 June | Europe | Americas | Rest of | Total |
| 2009: | | | the world | |
+------------------------+----------+----------+-----------+-----------+
| | GBP'000s | GBP'000s | GBP'000s | GBP'000s |
+------------------------+----------+----------+-----------+-----------+
| | | | | |
+------------------------+----------+----------+-----------+-----------+
| Revenue | 8,147 | 1,616 | 1,132 | 10,895 |
+------------------------+----------+----------+-----------+-----------+
| | | | | |
+------------------------+----------+----------+-----------+-----------+
| Total assets | 22,451 | - | - | 22,451 |
+------------------------+----------+----------+-----------+-----------+
| | | | | |
+------------------------+----------+----------+-----------+-----------+
| Capital expenditure | 187 | - | - | 187 |
+------------------------+----------+----------+-----------+-----------+
| | | | | |
+------------------------+----------+----------+-----------+-----------+
+-------------------------+----------+----------+----------+----------+
| Year ended 31 December | Europe | Americas | Rest of | Total |
| 2009 | | | the | |
| | | | world | |
+-------------------------+----------+----------+----------+----------+
| | GBP'000s | GBP'000s | GBP'000s | GBP'000s |
+-------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------+----------+----------+----------+----------+
| Revenue | 15,549 | 3,277 | 5,868 | 24,694 |
+-------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------+----------+----------+----------+----------+
| Total assets | 21,963 | - | - | 21,963 |
+-------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------+----------+----------+----------+----------+
| Capital expenditure | 286 | - | - | 429 |
+-------------------------+----------+----------+----------+----------+
| | | | | |
+-------------------------+----------+----------+----------+----------+
5. Operating profit/(loss) for the half year
The operating profit (2009 loss) for the half year is stated after
charging/(crediting):
+----------------------------------+------------+----------+------------+-+---------------+
| | Six months | | Six months | | Year ended |
| | to | | to | | 31 December |
| | 30 June | | 30 June | | 2009 |
| | 2010 | | 2009 | | |
+----------------------------------+------------+----------+------------+-+---------------+
| | GBP'000s | | GBP'000s | | GBP'000s |
+----------------------------------+------------+----------+------------+-+---------------+
| Goodwill impaired (note 6) | 100 | | - | | - |
+----------------------------------+------------+----------+------------+-+---------------+
| Loss on disposal of owned assets | 72 | | - | | - |
| (note 7) | | | | | |
+----------------------------------+------------+----------+------------+-+---------------+
| | ----- | | ----- | | ----- |
+----------------------------------+------------+----------+------------+-+---------------+
6. Impairment of goodwill
Management have taken the decision to commence liquidation of Yacht Help Group
Gibraltar Limited ("Gibraltar") as part of the ongoing restructuring programme
to save costs and improve efficiency. An impairment review of the goodwill
associated with Gibraltar resulted in the prudent decision to write the goodwill
off.
The value written off during the period was GBP100,000. The operational activity
of Gibraltar has been transferred to the Palma, Mallorca operations or is now
provided through a strategic partner with revenues flowing into Yacht Help Group
Palma. The activity transferred to Palma, Mallorca did not in the opinion of the
directors justify a transfer of the associated goodwill.
7. Disposal of fixed assets
The restructuring and relocation of Yacht Help Group (Mallorca) SL resulted in a
loss on disposal of fixtures and fittings associated with the former office
premises. The loss on disposal amounted to GBP72,000.
8. Earnings/(loss) per share
+------------------------------+-------------+----------+-------------+-+-------------+
| | Six months | | Six months | | Year ended |
| | to | | to | | 31 December |
| | 30 June | | 30 June | | 2009 |
| | 2010 | | 2009 | | |
+------------------------------+-------------+----------+-------------+-+-------------+
| Earnings/(loss) per ordinary | | | | | |
| share | | | | | |
+------------------------------+-------------+----------+-------------+-+-------------+
| Basic - pence | 0.80 | | (1.24) | | 0.02 |
+------------------------------+-------------+----------+-------------+-+-------------+
| Diluted - pence | 0.80 | | (1.24) | | 0.02 |
+------------------------------+-------------+----------+-------------+-+-------------+
| | ----- | | ----- | | ----- |
+------------------------------+-------------+----------+-------------+-+-------------+
The profit/(loss) per ordinary share is based on the Group's profit for the
period of GBP384,000 (30 June 2009 - GBP596,000 loss; 31 December 2009 -
GBP11,000 profit) and a basic and diluted weighted average number of shares in
issue of 48,166,401.
9. Reconciliation of operating profit/(loss) to net cash in/(out)flow from
operating activities
+-----------------------------+------------+-----------------------+--------------+
| | Six months | Six months | Year ended |
| | to | 30 June | 31 December |
| | 30 June | 2009 | 2009 |
| | 2010 | | |
+-----------------------------+------------+-----------------------+--------------+
| | GBP'000s | GBP'000s | GBP'000s |
+-----------------------------+------------+-----------------------+--------------+
| | | | |
+-----------------------------+------------+-----------------------+--------------+
| Operating profit/(loss) for | 539 | (569) | 82 |
| the period | | | |
+-----------------------------+------------+-----------------------+--------------+
| Adjustments for : | | | |
+-----------------------------+------------+-----------------------+--------------+
| Impairment loss recognised | 100 | - | - |
| on investment | | | |
+-----------------------------+------------+-----------------------+--------------+
| Amortisation of other | 48 | 143 | 257 |
| intangibles | | | |
+-----------------------------+------------+-----------------------+--------------+
| Depreciation of property, | 98 | 101 | 185 |
| plant and equipment | | | |
+-----------------------------+------------+-----------------------+--------------+
| Loss on scrapping of | 72 | - | - |
| tangible fixed assets | | | |
+-----------------------------+------------+-----------------------+--------------+
| Profit /(loss) on | (48) | 76 | - |
| unrealised foreign exchange | | | |
+-----------------------------+------------+-----------------------+--------------+
| Decrease/ (Increase) in | 1 | 194 | 200 |
| inventories | | | |
+-----------------------------+------------+-----------------------+--------------+
| Decrease/ (Increase)/ in | 1,277 | 68 | 1,013 |
| receivables | | | |
+-----------------------------+------------+-----------------------+--------------+
| (Decrease)/increase in | (1,720) | (458) | (1,750) |
| payables | | | |
+-----------------------------+------------+-----------------------+--------------+
| | ------- | ------- | ------- |
+-----------------------------+------------+-----------------------+--------------+
| Net cash in/(out)flow from | 367 | (445) | (13) |
| operating activities | | | |
+-----------------------------+------------+-----------------------+--------------+
| | ------ | ------ | ------ |
+-----------------------------+------------+-----------------------+--------------+
10. Called up share capital
The issued share capital as at 30 June 2010 was 48,166,401 ordinary shares of
0.35p each. (30 June 2009 - 48,166,401 ordinary shares of 0.35p each; 31
December 2009 - 48,166,401 ordinary shares of 0.35p each).
11. Contingent liabilities
At the end of the interim period, YCO Limited had GBP247,000 (30 June 2009 -
GBP566,000) (31 December 2009 GBP125,000) overdrawn balances in clients'
accounts. In the event that the yacht owners do not pay the overdrawn amount in
the clients' accounts, and YCO are unable to recover the amounts, the Group
would be liable for the balance to the bank.
12. Status of interim accounts
The unaudited interim financial information for the 6 months ended 30 June 2010
does not constitute statutory financial statements within the meaning of Section
435 of the Companies Act 2006. The figures for the year ended 31 December 2009
are extracted from the statutory financial statements which have been filed with
the Registrar of Companies and which contain an unqualified audit report and did
not contain statements under Section 498 to 502 of the Companies Act 2006.
13. Interim statements publication
Copies of this announcement will be available from the Company's registered
office at 18 Coulson Street, London, SW3 3NB and on the Company's website
www.ycogroup.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGUGGBUPUPGW
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