TIDMJWNG
RNS Number : 5661X
Jaywing PLC
20 December 2019
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Date: 19 December 2019
On behalf of: Jaywing plc ("Jaywing", "the Company" or "the Group")
Embargoed: 0700 hrs on 20 December 2019
Jaywing plc
Interim Results 2019/2020
&
Directorate Change
Jaywing plc (AIM: JWNG) today announces its interim results for
the six months ended
30 September 2019 ("H1").
Financial highlights from continuing operations
6 months to 6 months to
30 September 30 September
2019 2018
GBP'000 GBP'000
Gross profit* 11,996 14,979
-------------- --------------
Adjusted EBITDA** (551) 1,327
-------------- --------------
Adjusted EBITDA margin*** (4.6%) 8.9%
-------------- --------------
Loss after tax (1,215) (634)
-------------- --------------
Reported EPS (1.38p) (0.70p)
-------------- --------------
Net debt 5,748 7,132
-------------- --------------
* Revenue less direct costs of sale
** Before amortisation, share based charges, exceptional items,
acquisition related costs and adjustment for the impact of IFRS
16
*** As a percentage of gross profit
Commenting on the results, Martin Boddy, Chairman of Jaywing
plc, said:
"As we have outlined in previous announcements, trading in the
UK in the first quarter of the year was very weak with a modest
improvement in the second quarter. With the political and economic
uncertainty in the period, many clients have been focused on their
short term marketing spend and where this spend is discretionary,
it has been running at a level well below that seen in previous
years. However, trading in our Australia operation continued to
show profitable growth with EBITDA increasing by 40%.
Overall, like for like Gross Profit for the half year fell by
20% to GBP12m but the impact on EBITDA was mitigated through cost
management and efficiencies resulting in a like for like EBITDA
loss of GBP551k. Despite this, we have generated a small positive
cashflow from operations. Net debt reduced year on year following
the sale of HSM Limited in January 2019 and loan repayments.
On 2 October 2019, following the half year period, we announced
that entities associated with two of our major shareholders had
acquired the Company's existing secured loan facility of GBP5.2
million owed to Barclays Bank plc. The major shareholders
immediately provided the Company with additional secured facilities
by increasing the Jaywing Facility by GBP3.0 million to GBP8.2
million, which enabled the Company to repay its outstanding
overdraft and provided it with additional working capital.
By successfully tackling the Group's funding challenge Jaywing
is now in a financially stronger position.
During September we developed a plan with the objective of
returning our UK operations to profitability and cash generation in
the short term, which assumed no improvement in trading conditions.
Taking expert input we concluded that we needed to take a different
approach and the plan sets out how we will reshape and re-engineer
the organisation to address the changes that we are seeing in the
way clients engage with agencies and the new demands that they are
making of them. Since September management has been focused on
executing the plan and I am pleased to say that we are making good
progress. We have improved the management of our working capital,
materially realigned our cost base and adopted a new and
contemporary agency model that drives revenue and creates
efficiencies in delivering even higher quality and effective work
for clients. All of this is now being reflected in a stronger
financial run rate.
The composition of the Board has also been reviewed and by
mutual agreement. Adrian Lingard, Chief Operating Officer, is
stepping down from the Board with immediate effect. On behalf of
the Board I would like to thank him for his contribution over the
past four years.
Beyond the short term, the Board is considering a range of
strategic options to return the Company to highly accretive revenue
growth. With its performance marketing proposition and pedigree in
data science, Jaywing has some highly attractive capabilities that
differentiate it from its competition and position it in areas of
marketing spend that are set to grow."
Enquiries:
Jaywing plc
Michael Sprot (CFO / Company Tel: 0114 281 1200
Secretary)
Cenkos Securities plc
Nicholas Wells/Callum Davidson Tel: 020 7397 8900
Consolidated interim statement of comprehensive income
(unaudited)
Unaudited Unaudited
Six months Six months Audited
ended ended year
30 Sept 30 Sept ended
2019 2018 31 March
2019
Note GBP'000 GBP'000 GBP'000
Revenue 5 13,815 18,731 35,554
Direct costs (1,819) (3,752) (5,709)
------------- ------------- -----------
Gross profit 11,996 14,979 29,845
Other operating income 20 - 13
Amortisation (777) (886) (1,795)
Operating expenses (12,619) (14,503) (28,872)
------------- ------------- -----------
Operating loss (1,380) (410) (809)
------------- ------------- -----------
Finance income 1 2 4
Finance costs (157) (159) (305)
------------- ------------- -----------
Net financing costs (156) (157) (301)
------------- ------------- -----------
Loss before tax from continuing
operations (1,536) (567) (1,110)
Tax credit 6 321 109 175
------------- ------------- -----------
Loss after tax from continuing
operations (1,215) (458) (935)
Loss from discontinued operations - (176) (1,610)
------------- ------------- -----------
Loss for the period (1,215) (634) (2,545)
Loss for the period is attributable
to:
Non-controlling interests 74 24 140
Owners of the parent (1,289) (658) (2,685)
------------- ------------- -----------
(1,215) (634) (2,545)
Other comprehensive income
Items that will be reclassified
subsequently to profit or
loss
Exchange differences on
retranslation of foreign
operations (13) (5) 20
------------- ------------- -----------
Total comprehensive loss
for the period (1,228) (639) (2,525)
------------- ------------- -----------
Total comprehensive income
is attributable to:
Non-controlling interests 74 24 140
------------- ------------- -----------
Owners of the parent (1,302) (663) (2,665)
------------- ------------- -----------
(1,228) (639) (2,525)
Loss per share 7
Basic loss per share from
continuing operations (1.38p) (0.52p) (1.15p)
Basic loss per share from
discontinued operations - (0.18p) (1.72p)
------------- ------------- -----------
Total (1.38p) (0.70p) (2.87p)
Diluted loss per share from
continuing operations (1.38p) (0.52p) (1.15p)
Diluted loss per share from
discontinued operations - (0.18p) (1.72p)
------------- ------------- -----------
Total (1.38p) (0.70p) (2.87p)
------------- ------------- -----------
Consolidated interim balance sheet (unaudited)
Unaudited Unaudited Audited
30 Sept 30 Sept 31 March
2019 2018 2019
Note GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Property, plant and equipment 3,330 1,342 1,015
Goodwill 33,054 34,674 33,054
Other intangible assets 3,650 5,106 4,364
------------ ------------ -----------
40,034 41,122 38,433
------------ ------------ -----------
Current assets
Trade and other receivables 6,522 13,071 8,256
Tax receivable 285 - -
Cash and cash equivalents 1 2 690
6,808 13,073 8,946
------------ ------------ -----------
Total assets 46,842 54,195 47,379
------------ ------------ -----------
Liabilities
Current liabilities
Bank overdraft 8 (549) (884) -
Other interest bearing loans
and borrowings 8 (1,800) (1,500) (1,800)
Trade and other payables (8,832) (12,412) (9,546)
Tax payable - (397) (205)
Provisions (42) (151) (42)
------------ ------------ -----------
(11,223) (15,344) (11,593)
------------ ------------ -----------
Non-current liabilities
Other interest bearing loans
and borrowings 8 (3,400) (4,750) (3,850)
Lease liability (1,770) - -
Deferred tax liabilities (552) (809) (656)
(5,722) (5,559) (4,506)
------------ ------------ -----------
Total liabilities (16,945) (20,903) (16,099)
------------ ------------ -----------
Net assets 29,897 33,292 31,280
------------ ------------ -----------
Equity
Capital and reserves attributable
to equity holders of the
company
Share capital 34,992 34,992 34,992
Share premium account 10,088 10,088 10,088
Capital redemption reserve 125 125 125
Shares purchased for treasury (25) (25) (25)
Share option reserve 683 826 838
Foreign currency translation
reserve (13) (25) -
Retained earnings (17,178) (14,431) (15,889)
------------ ------------ -----------
Equity attributable to owners
of the parent 28,672 31,550 30,129
Non-controlling interest 1,225 1,742 1,151
Total equity 29,897 33,292 31,280
------------ ------------ -----------
Consolidated interim cash flow statement (unaudited)
Unaudited Unaudited
Six months Six months Audited
ended ended year
30 Sept 30 Sept ended
2019 2018 31 March
2019
Note GBP'000 GBP'000 GBP'000
Cash flow from operating
activities
Loss for the period (1,215) (634) (2,545)
Adjustment for:
Depreciation, amortisation
and impairment 1,297 1,234 3,440
Loss on sale of HSM Limited - - 1,370
Foreign exchange (15) (5) -
Finance income (1) (2) (4)
Finance costs 157 159 305
Share based payment charge (155) 152 177
Taxation (321) (109) (175)
------------ ------------ -----------
Operating cash flow before
changes in working capital (253) 795 2,568
Decrease / (increase) in
trade and other receivables 1,736 (1,124) 1,599
(Decrease) / increase in
trade and other payables (1,475) 216 (1,745)
------------ ------------ -----------
Cash (used in)/generated
from operations 8 (113) 2,422
Interest received 1 2 4
Interest paid (103) (154) (305)
Tax paid (273) - (287)
------------ ------------ -----------
Net cash flow from operating
activities (367) (265) 1,834
------------ ------------ -----------
Cash flows from investing
activities
Payment of deferred consideration (325) (672) (592)
Proceeds from sale of HSM
Limited - - 403
Acquisition of intangible
assets (63) (94) (297)
Acquisition of property,
plant and equipment (33) (183) (252)
Net cash outflow from investing
activities (421) (949) (738)
------------ ------------ -----------
Cash flows from financing
activities
Repayment of borrowings (450) (300) (900)
Acquisition of non-controlling
interest - - (138)
Net cash outflow from financing
activities (450) (300) (1,038)
------------ ------------ -----------
Net (decrease) / increase
in cash, cash equivalents
and bank overdrafts (1,238) (1,514) 58
Cash and cash equivalents
at beginning of period 690 632 632
------------ ------------ -----------
Cash and cash equivalents
at end of period (548) (882) 690
------------ ------------ -----------
Cash and cash equivalents
comprise:
Cash at bank and in hand 1 2 690
Bank overdrafts 7 (549) (884) -
------------ ------------ -----------
Cash and cash equivalents
at end of period (548) (882) 690
------------ ------------ -----------
Consolidated interim statement of changes in equity
(unaudited)
Foreign
Share Capital Share currency Equity
Share premium redemption Treasury option translation Retained attributable Non-controlling Total
capital account reserve Shares reserve reserve earnings to parent interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Balance at 31
March
2018 34,992 10,088 125 (25) 736 (20) (13,773) 32,123 1,718 33,841
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Charge in
respect
of share-based
payments - - - - 90 - - 90 - 90
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Transactions
with
owners - - - - 90 - - 90 - 90
Profit/(loss)
for
the period - - - - - - (658) (658) 24 (634)
Retranslation of
foreign
currency - - - - - (5) - (5) - (5)
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Total
comprehensive
income for the
period - - - - - (5) (658) (663) 24 (639)
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Balance at 30
September
2018 34,992 10,088 125 (25) 826 (25) (14,431) 31,550 1,742 33,292
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Acquisition of
non-controlling
interests - - - - - - 569 569 (707) (138)
Charge in
respect
of share-based
payments - - - - 12 - - 12 - 12
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Transactions
with
owners - - - - 12 - 569 581 (707) (126)
Profit/(loss)
for
the period - - - - - - (2,027) (2,027) 116 (1,911)
Retranslation of
foreign
currency - - - - - 25 - 25 - 25
Total
comprehensive
income for the
period - - - - - 25 (2,027) (2,002) 116 (1,886)
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Balance at 31
March
2019 (audited) 34,992 10,088 125 (25) 838 - (15,889) 30,129 1,151 31,280
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Charge in
respect
of share-based
payments - - - - (155) - - (155) - (155)
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Transactions
with
owners - - - - (155) - - (155) - (155)
Profit/(loss)
for
the period - - - - - - (1,289) (1,289) 74 (1,215)
Retranslation of
foreign
currency - - - - - (13) - (13) - (13)
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Total
comprehensive
income for the
period - - - - - (13) (1,289) (1,302) 74 (1,228)
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
Balance at 30
September
2019 34,992 10,088 125 (25) 683 (13) (17,178) 28,672 1,225 29,897
-------- -------- ----------- --------- -------- ------------ --------- ------------- ---------------- --------
1. General Information
Jaywing plc (the "Company") is incorporated and domiciled in the
United Kingdom. The Company is listed on the AIM market of the
London Stock Exchange. The registered address is Albert Works,
Sidney Street, Sheffield,
S1 4RG.
The interim financial information was approved for issue on 19
December 2019.
2. Basis of preparation
The consolidated interim financial statements for the six months
ended 30 September 2019, which are unaudited, have been prepared in
accordance with applicable accounting standards and under the
historical cost convention except for certain financial instruments
that are carried at fair value.
The financial information for the year ended 31 March 2019 set
out in this interim report does not constitute statutory accounts
as defined in Section 434 of the Companies Act 2006. The Group's
statutory financial statements for the year ended 31 March 2019
have been filed with the Registrar of Companies. The auditor's
report on those financial statements was unqualified and did not
contain statements under Section 498 (2) or Section 498 (3) of the
Companies Act 2006.
The consolidated interim financial information should be read in
conjunction with the annual financial statements for the year ended
31 March 2019, which have been prepared in accordance with
International Financial Reporting Standards (IFRSs) as adopted by
the European Union.
3. Accounting policies
Except as described below, the principal accounting policies of
Jaywing plc and its subsidiaries ("the Group") are consistent with
those set out in the Group's 2019 annual report and financial
statements.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
The Group has applied the same accounting policies and methods
of computation in its interim consolidated financial statements as
in its 2019 annual financial statements, except for those that
relate to new standards and interpretations effective for the first
time for periods beginning on (or after) 1 April 2019 and will be
adopted in the 2020 financial statements. The only standard
impacting the Group that will be adopted in the annual financial
statements for the year ended 31 March 2020, and which have given
rise to a change in the Group's accounting policies is:
-- IFRS 16 leases
Details of the impact of this standard is given below. Other new
and amended standards and interpretations issued by the IASB that
will apply for the first time in the next annual financial
statements are not expected to have a material impact on the
Group.
4. New IFRS implementation
The Company has adopted IFRS 16 - Leases for the financial year
ending 31 March 2020, and it has chosen to use the modified
retrospective approach to adoption which means there are no
restatements to the prior year figures.
IFRS 16 introduces a single lessee accounting model, whereby the
Group now recognises a lease liability and a right of use asset at
1 April 2019 for leases previously classified as operating leases.
Within the income statement, operating lease charges, which
previously were included in administrative expenses, have been
replaced by depreciation and interest expenses.
The adoption of IFRS 16 resulted in a right of use asset of
GBP2.8 million, with a corresponding liability of GBP2.8 million,
being recognised as at 1 April 2019 which was depreciated to a
value of GBP2.5 million as at 30 September 2019.
In order to see how the impact of IFRS 16 has affected Adjusted
EBITDA*, a reconciliation is presented below:
6 months 6 months
ended ended
30 September 30 September
2019 2018
GBP'000 GBP'000
----------------------------------------- -------------- -------------------
Adjusted EBITDA* - consistent with 2018
presentation and accounting policy (551) 1,327
Changes due to new accounting policy -
IFRS 16 425 -
----------------------------------------- -------------- -------------------
Adjusted EBITDA* - consistent with 2019
presentation and accounting policy (126) 1,327
* Before amortisation, share based charges, exceptional items
and acquisition related costs
The Group has adopted IFRS 16 on a modified retrospective basis.
Upon transition, a lease liability has been recognised based on
future lease payments discounted at an appropriate borrowing rate.
Additionally, a right
of use asset has been recognised along with a related lease
liability. Within the income statement, the operating lease charge
(GBP370k) has been replaced by depreciation (GBP333k) and interest
expense (GBP54k). This has resulted in a decrease in operating
expenses and an increase in finance costs.
6 months 6 months
ended ended
30 September 30 September
2019 2018
GBP'000 GBP'000
Non-current assets
Property, plant and equipment - consistent
with 2018 presentation and accounting
policy 861 1,342
Changes due to new accounting policy - 2,469 -
IFRS 16 - Right of use asset
-------------------------------------------- -------------- -------------------
Property, plant and equipment - consistent
with 2019 presentation and accounting
policy 3,330 1,342
Current liabilities
Current liabilities - consistent with
2018 presentation and accounting policy 10,562 15,344
Changes due to new accounting policy - 661 -
IFRS 16 - Short term leases
-------------------------------------------- -------------- -------------------
Current liabilities - consistent with
2019 presentation and accounting policy 11,223 15,344
Non-current liabilities
Non-current liabilities - consistent with
2018 presentation and accounting policy 3,952 5,559
Changes due to new accounting policy - 1,770 -
IFRS 16 - Long term leases
-------------------------------------------- -------------- -------------------
Non-current liabilities - consistent with
2019 presentation and accounting policy 5,722 5,559
5. Segment information (unaudited)
Jaywing reports its business activities in three areas: Brand
Performance, Online Performance and Data, Analysis &
Technology. Central Costs represents the Group's head office
function, along with intragroup transactions. The 2018 results have
been restated into the new segments.
Six months ended 30 September
2019
Brand Online Data Analysis Central Total
Performance Performance & Technology Costs Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 4,822 7,509 3,390 (1,906) 13,815
Direct costs (1,282) (2,010) (433) 1,906 (1,819)
------------- ------------- -------------- -------- ---------
Gross profit 3,540 5,499 2,957 - 11,996
Operating expenses
excluding depreciation,
amortisation,
exceptional
items, acquisition
related costs
and charges
for share based
payments (3,702) (4,488) (2,809) (1,123) (12,122)
------------- ------------- -------------- -------- ---------
Operating profit
/ (loss) before
depreciation,
amortisation,
exceptional
items, acquisition
related costs
and credit for
share based
payments (162) 1,011 148 (1,123) (126)
-------- ---------
Other Operating
Income 20 - - - 20
Depreciation (88) (298) (13) (121) (520)
Amortisation (359) (369) (49) - (777)
Exceptional
costs (46) (146) (10) (267) (469)
Acquisition
related costs - - - (293) (293)
Charge for share
based payments - - - 785 785
-------- ---------
Operating profit
/ (loss) (635) 198 76 (1,019) (1,380)
------------- ------------- -------------- -------- ---------
Finance costs (156)
---------
Loss before
tax (1,536)
Tax credit 321
---------
Loss for the
period (1,215)
---------
Six months ended 30 September 2018 - continuing
operations
Brand Online
Performance Performance Data Analysis Central Total
& Technology Costs Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 6,070 6,546 7,052 (937) 18,731
Direct costs (1,340) (333) (3,016) 937 (3,752)
------------- ------------- -------------- -------- ---------
Gross profit 4,730 6,213 4,036 - 14,979
Operating
expenses excluding
depreciation,
amortisation,
exceptional
items, acquisition
related costs
and charges
for share
based payments (4,262) (4,840) (3,341) (1,209) (13,652)
------------- ------------- -------------- -------- ---------
Operating
profit/(loss)
before depreciation,
amortisation,
exceptional
items, acquisition
related costs
and charges
for share
based payments 468 1,373 695 (1,209) 1,327
------------- ------------- -------------- -------- ---------
Depreciation (48) (109) (19) (43) (219)
Amortisation (488) (360) (38) - (886)
Other exceptional
costs (6) (36) (19) (224) (285)
Acquisition
related costs - - - (147) (147)
Charge for
share based
payments - - - (200) (200)
------------- ------------- -------------- -------- ---------
Operating
profit / (loss) (74) 868 619 (1,823) (410)
------------- ------------- -------------- -------- ---------
Finance costs (157)
---------
Loss before
tax (567)
Tax credit 109
---------
Loss for the
period (458)
---------
5. Segment information (unaudited) (continued)
Year ended 31 March 2019 (audited) - continuing operations
Brand Online Data Analysis Central Total
Performance Performance & Technology Costs Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 11,685 13,289 12,446 (1,866) 35,554
Direct costs (2,504) (609) (4,502) 1,906 (5,709)
------------- ------------- -------------- -------- ---------
Gross profit 9,181 12,680 7,944 40 29,845
Operating expenses
excluding depreciation,
amortisation, exceptional
items, acquisition
related costs and
charges for share
based payments (8,224) (9,931) (6,225) (2,136) (26,516)
------------- ------------- -------------- -------- ---------
Operating profit/(loss)
before depreciation,
amortisation, exceptional
items, acquisition
related costs and
charges for share
based payments 957 2,749 1,719 (2,096) 3,329
------------- ------------- -------------- -------- ---------
Other operating
income 13 - - - 13
Impairment to value
of goodwill (1,050) - - - (1,050)
Depreciation (89) (203) (36) (84) (412)
Amortisation (897) (811) (87) - (1,795)
Exceptional costs (27) (108) (214) (779) (1,128)
Acquisition related
costs (66) (100) - 577 411
Charges for share
based payments (14) (19) (27) (117) (177)
------------- ------------- -------------- -------- ---------
Operating (loss)/profit (1,173) 1,508 1,355 (2,499) (809)
------------- ------------- -------------- -------- ---------
Finance income 4
Finance costs (305)
---------
Loss before tax (1,110)
Tax credit 175
---------
(935)
---------
The September 2018 segmental analysis has been restated to
reallocate some costs between direct costs and operating
expenses.
Brand Online
Performance Performance Data Analysis Central Discontinued Total
Capital employed & Technology Costs Operations Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
30 September
2019 17,960 13,107 9,490 (10,660) - 29,897
31 March 2019 19,267 13,742 10,175 (11,904) - 31,280
30 September
2018 21,741 12,963 12,469 (15,044) 1,163 33,292
------------- ------------- -------------- ----------
6. Tax credit (unaudited)
A reconciliation of the charge that would result from applying
the standard UK corporation tax rate to profit before tax to the
tax credit is given below.
Six months ended Six months ended Audited year
30 Sept 2019 30 Sept 2018 ended
31 March 2019
GBP'000 GBP'000 GBP'000
Recognised in the consolidated statement of comprehensive
income:
Current year tax 215 (33) (91)
Origination and reversal of temporary differences 106 142 266
----------------- ----------------- ---------------
Total tax credit 321 109 175
----------------- ----------------- ---------------
Loss before tax (1,536) (567) (1,110)
Tax charge thereon at UK corporation tax rate of 19% (2018:
19%) 292 108 211
Effects of:
Non-deductible expenses 29 1 (36)
Total tax credit 321 109 175
----------------- ----------------- ---------------
7. Loss per share (unaudited)
Six months Six months Audited
ended ended year
30 Sept 30 Sept ended
2019 2018 31 March
2019
Pence
Pence Pence per
per share per share Share
Basic loss per share from continuing
operations (1.38p) (0.52p) (1.15p)
Basic loss per share from discontinued
operations - (0.18p) (1.72p)
----------- ----------- ----------
Basic loss per share (1.38p) (0.70p) (2.87p)
Diluted loss per share from
continuing operations (1.38p) (0.52p) (1.15p)
Diluted loss per share from
discontinued operations - (0.18p) (1.72p)
----------- ----------- ----------
Diluted loss per share (1.38p) (0.70p) (2.87p)
Loss per share has been calculated by dividing the loss
attributable to shareholders by the weighted average number of
ordinary shares in issue during the period. The calculations of
basic and diluted loss per share are:
Six months Six months Audited
ended ended year
30 Sept 30 Sept ended
2019 2018 31 March
2019
GBP'000 GBP'000 GBP'000
Loss for the period attributable
to shareholders from continuing
operations (1,289) (482) (1,075)
Loss for the period attributable
to shareholders from discontinued
operations - (176) (1,610)
----------- ----------- ----------
Total loss for the period
attributable to shareholders (1,289) (658) (2,685)
Weighted average number of Number Number Number
ordinary shares in issue: '000 '000 '000
Basic 93,432 93,432 93,432
Adjustment for share options,
warrants and contingent
shares 3,688 1,481 1,707
----------- ----------- ----------
Diluted 97,120 94,913 95,139
----------- ----------- ----------
Adjusted earnings per share
Six months Six months Audited
ended ended year
30 Sept 30 Sept ended
2019 2018 31 March
2019
Pence Pence Pence per
per share per share share
Basic adjusted earnings
per share (1.11p) 0.56p 1.39p
Diluted adjusted earnings
per share (1.11p) 0.55p 1.36p
----------- ----------- ----------
Adjusted earnings per share have been calculated by dividing the
profit attributable to shareholders before other income,
amortisation, impairment, charges for share based payments and the
current period tax charge by the weighted average number of
ordinary shares in issue during the period. The numbers used in
calculating the basic and diluted adjusted earnings per share are
reconciled below:
Six months Six months Audited
ended ended year
30 Sept 30 Sept ended
2019 2018 31 March
2019
GBP'000 GBP'000 GBP'000
Loss before tax from continuing
operations (1,536) (743) (2,685)
Amortisation 777 950 1,885
Impairment to the carrying
value of goodwill - - 1,050
Loss on sale of HSM Limited - - 1,370
Acquisition related costs 293 147 (411)
Charge for share based payments (785) 200 177
----------- ----------- ----------
Adjusted profit attributable
to shareholders (1,251) 554 1,386
Current period tax charge 215 (33) (91)
----------- ----------- ----------
(1,036) 521 1,295
----------- ----------- ----------
8. Bank overdraft, borrowings and loans (unaudited)
Audited
30 Sept 30 Sept 31 March
2019 2018 2019
Summary GBP'000 GBP'000 GBP'000
Bank overdraft 549 884 -
Borrowings, undiscounted
cash flows 5,200 6,250 5,650
-------- -------- ----------
5,749 7,134 5,650
-------- -------- ----------
Borrowings are repayable
as follows:
Within 1 year
Bank overdraft 549 884 -
Borrowings 1,800 1,500 1,800
-------- -------- ----------
Total due within 1 year 2,349 2,384 1,800
In more than one year but
less than two years 3,400 1,800 3,850
In more than two years but - 1,800 -
less than three years
In more than three years - 1,150 -
but less than four years
-------- -------- ----------
Total amount due 5,749 7,134 5,650
-------- -------- ----------
Average interest rates at % % %
the balance sheet date were:
Overdraft 2.00 2.00 -
Term loan 4.05 4.00 4.10
Revolving credit facility N/A - N/A
-------- -------- ----------
As the loans are at variable market rates their carrying amount
is equivalent to their fair value.
The borrowing facilities available to the Group at 30 September
2019 were GBP1.5 million (2018: GBP1.1 million) and, taking into
account cash balances within the Group, there was GBP1.5 million
(2018: GBP1.1 million) of available borrowing facilities.
A composite accounting system is set up with the Group's
bankers, which allows debit balances on overdraft to be offset
across the Group with credit balances.
Cash at
Reconciliation of net bank and
debt in hand Overdraft Borrowings Net debt
GBP'000 GBP'000 GBP'000 GBP'000
30 September 2019 1 (549) (5,200) (5,748)
31 March 2019 690 - (5,650) (4,960)
30 September 2018 2 (884) (6,250) (7,132)
---------- ---------- ----------- ---------
9. Provisions (unaudited)
Audited
30 Sept 30 Sept 31 March
2019 2018 2019
GBP'000 GBP'000 GBP'000
At the beginning of the
period 42 151 151
Disposal of HSM Limited - - (109)
At the end of the period 42 151 42
---------- ---------- ----------
Provisions relate to leases in the Group where the commercial
benefit has either ceased or will cease before the normal expiry
period.
10. Share capital (unaudited)
Authorised:
45p deferred shares 5p ordinary shares
GBP'000 GBP'000
Authorised share capital
at 31 March 2019 and
30 September 2019 45,000 10,000
Allotted, issued and fully paid
45p deferred 5p ordinary
shares shares
Number Number GBP'000
Issued share capital
at 31 March 2019 and
30 September 2019 67,378,520 93,432,217 34,992
--------------- ---------------- ------------
11. Related party transactions (unaudited)
There were no significant changes in the nature and size of
related party transactions for the period from those disclosed in
the Annual Report for the year ended 31 March 2019.
12. Post balance sheet event
On 2 October 2019, Jaywing plc announced that entities
associated with two of the major shareholders had acquired the
Company's existing secured loan facility of GBP5.2m owed to
Barclays Bank plc. The major shareholders immediately provided the
Company with additional secured facilities by increasing the
Jaywing facility by GBP3.0m to GBP8.2m, which enabled the Company
to repay its outstanding overdraft and provided it with additional
working capital.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR MMMMZLLKGLZM
(END) Dow Jones Newswires
December 20, 2019 02:00 ET (07:00 GMT)
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