HARGREAVES SERVICES PLC HARGREAVES SERVICES PLC
(the 'Group' or 'Hargreaves')
Interim Results for the six months ended 30 November 2017
Hargreaves Services plc (AIM: HSP), a diversified group delivering key projects and services to the industrial, energy and property sectors,announces its interim results for the six months ended 30 November 2017.
KEY FINANCIAL RESULTS
Unaudited Six Months ended 30 Nov 2017 | Unaudited Six Months ended 30 Nov 2016 | ||
Revenue | £150.3m | £170.9m | |
Underlying Operating Profit* Operating (Loss)/Profit | £2.3m £(2.7)m | £2.1m £0.1m | |
Underlying EPS | 2.7p | 0.3p | |
EPS Interim Dividend | (4.0)p 2.7p | 0.0p 2.7p | |
Net Debt | £20.6m | £36.9m | |
Net Asset Value Net Assets per Share | £134.9m 423p | £129.2m 406p |
* Underlying Operating profit is defined by the Board as Operating Profit prior to exceptional items and amortisation of intangible assets and includes the Group's share of pre-tax profit of its German associate.
HIGHLIGHTS
· First half underlying trading in line with management expectations;
· Underlying Operating Profit improved;
· Interim dividend maintained at 2.7p;
· Net debt reduced by 44%;
· Property development and realisation programme progressing; and
· Brockwell Energy spin off progressing with financial closure expected in the next few months.
Commenting on the interim results, Chairman David Morgan said:'The Group's operational focus on delivering consistent performance with an emphasis on risk management and margin improvement is beginning to bear fruit. Progress on the key strategic objective of realising value from the Group's Property and Energy assets has continued with further significant news, particularly in respect of the Energy portfolio, expected in the next few months. TheGroup has a strong balance sheet to support its strategy and the Board remains confident that there is substantial shareholder value to be realised.'
For further details:
Hargreaves Services plc Gordon Banham, Group Chief Executive John Samuel, Group Finance Director | 0191 373 4485 |
Buchanan (Financial PR) Mark Court / Sophie Wills / Henry Wilson | 0207 466 5000 |
N+1 Singer (NOMAD and Joint Corporate Broker) Sandy Fraser/ Rachel Hayes | 020 7496 3000 |
Investec (Joint Corporate Broker) Sara Hale / Rob Baker | 020 7597 5970 |
CHAIRMAN'S STATEMENT
Results
Underlying trading in the first half was in line with management expectations. Revenue was £150.3m (2016: £170.9m). The reduction is primarily due to the inclusion of £10.2m of Legacy asset sales in 2016, whereas only £0.4m of such sales arose in the current period. Additionally, the first half of the year saw a reduction of £6.3m in revenue on three legacy contracts in Specialist Earthworks.
Underlying Operating Profit for the first half was slightly higher than the comparative period at £2.3m (2016: £2.1m). The improvement derives from Distribution & Services which recorded an increase in Underlying Operating Profit to £5.1m (2016: £4.8m). Underlying Operating Profit is defined by the Board as Operating Profit prior to exceptional items and amortisation of intangible assets and includes the Group's share of pre-tax profit of its German associate.Operating loss under IFRS was £2.7m (2016: profit £0.1m).
The Specialist Earthworks business has continued to manage to completion three legacy contracts inherited from the acquisition of C. A. Blackwell. These contracts reported £3.6m (2016: £9.9m) of revenue and incurred operating losses of £2.8m in the period, which are recorded as exceptional. There were no losses recorded on these contracts in the comparative period as they were accounted for in a fair value adjustment to goodwill. One of these contracts has now completed and as the other two have now moved much closer to completion, a more accurate assessment of their likely financial outcome has been possible. The last of these contracts is expected to complete on site by April 2018 and full provision has been made for all expected losses.
After accounting for the exceptional item of £2.8m (2016: £nil), amortisation of intangible assets of £0.2m (2016: £0.1m) and adjusting for tax on the profits of the German associate of £0.7m (2016: £0.6m), the loss before tax was £1.9m (2016: profit £0.2m).
Earnings Per Share
Underlying basic earnings per share were 2.7p (2016: 0.3p) and (4.0)p (2016: 0.0p) on a reported basis.
Net Debt
Net debt reduced to £20.6m (2016: £36.9m) primarily due to the recovery of £5.6m of the Tower loan and the proceeds from Legacy coal asset sales. These inflows occurred in the second half of the 2017 financial year and were reflected within the May 2017 closing balance sheet. As a result, net interest charges have reduced to £0.6m (2016: £1.2m). The Group has substantial headroom on its banking facilities and is operating well within covenant levels. Net debt is not expected to be materially different by the end of the financial year.
Dividend
The Board is maintaining the interim dividend at 2.7p (2016: 2.7p). This will be paid on 6 April 2018 to shareholders on the register at 23 February 2018.
Board Changes
As previously announced, on 2 January 2018, Iain Cockburn stepped down as Group Finance Director to take up the role of Chief Financial Officer of Brockwell Energy Limited, theholding company for the Group's interests in the electricity generation sector,on a full-time basis. Iain has been succeeded by John Samuel, formerly Group Finance Director at Renew Holdings plc.Additionally, Kevin Dougan retired from the Board on 1 December 2017. I would like to thank both Iain and Kevin for their many years of service to the Group. I look forward to working with Iain as the Brockwell project develops.Strategy
In April 2016, we announced three key strategic objectives.
First, to report an Underlying Operating Profit from the Distribution & Services business in excess of £10m by the year ending 31 May 2018. This was achieved in the year ended 31 May 2017, and these interim results indicate that this improved operating performance is being sustained.
Second, to create more than £35m of value from the Property & Energy portfolio by 2021. To date only £2.4m has been realised in cash from the Property portfolio and the work to realise further value continues. The successful development of the Blindwells site will be a key demonstration that the Group possesses substantial latent value in the land portfolio.
A key element of the value creation in the Property and Energy portfolio is the separation and spin off of the Energy business into Brockwell Energy Limited. The process to secure funding for Brockwell is well advanced with discussions progressing with several credible financial institutions. The Brockwell management team and their advisers have indicated that they are confident of achieving financial close within the next few months.
Finally, to generate £60m of cash from the realisation of Legacy assets. To date, £27m has been recorded and the net book value of the remaining legacy assets is £33m, compared with £42m one year ago.
In August 2017, we outlined four additional short term strategic goals to be achieved in the current financial year. In Distribution & Services, these were to grow and improve the profit resilience of Hargreaves Raw Materials Services GmbH ('HRMS'), the Group's German based European raw materials trading associate business,and to refocus the Specialist Earthworks business around its core competencies. In Property & Energy, these were the successful spin off of Brockwell Energy, which I have commented on above, and the sale of the first development plot at Blindwells.
In October 2017, we announced that the Board of HRMS had identified the opportunity to build a Carbon Pulverisation Plant in Germany which will add resilience to future trading prospects. HRMS is a key supplier of specialist raw materials to major European customers in the steel, foundry, smelting, ferroalloy, sugar, limestone, insulation, refractory and ceramic industries. The HRMS Board believes that there is a long-term market opportunity for the supply of bulk carbon products in Europe. The project is underpinned by agreements with a key strategic customer, including a guaranteed minimum off-take volume. Funding for the project through a combination of cash reserves and new and existing debt facilities in Germany is now secured. These funding arrangements have no material impact on the Group's current banking arrangements in the UK. Construction work has commenced, and the plant is expected to become operational in calendar year 2019.The two remaining legacy contracts in Specialist Earthworks, which have resulted in the exceptional costs incurred in this period, are expected to complete on site within the next two months. In respect of the other activities of this business, we reported in August 2017 that management is being highly selective and only engaging with contracts where the scope of work is within the business' core competence and where risk is managed and substantially mitigated through appropriate terms and conditions. The consequence of these actions has been a reduction of 12% in revenue (excluding legacy contracts).In Property, we indicated previously that we hoped to achieve a sale of the first development plot at the key Blindwells site near Edinburgh in this financial year. Due to planning delays, this will not now happen until next financial year. Despite that short-term delay, which will not impact expected results for the current financial year, progress on the project has been good with substantial interest generated from developers.
Outlook
The Group's strategy remains to deliver long term sustainable profits from its core trading businesses in Distribution & Services whilst optimising investment in Property & Energy to maximise value.These results confirm that the Group is making headway towards meeting its declared strategic objectives with further progress expected in the second half of this financial year. The Board anticipates reporting full year results in line with its expectations.
David Morgan
Chairman
14 February 2018
Chief Executive's Review
Distribution & Services
The Distribution & Services business recorded revenue of £146.8m (2016: £159.3m) and an Underlying Operating Profit of £5.1m (2016: £4.8m). Operating Profit under IFRS was £0.1m (2016: £2.8m). When the revenue on legacy contracts within Specialist Earthworks is excluded, revenue reduced by 4.1% to £143.2m (2016: £149.4m) and therefore the Underlying Operating Profit margin increased to 3.6% from 3.2%. Further information on the performance of each business within this segment is given below.
Coal Distribution
Revenue in Coal Distribution was £54.8m (2016: £57.9m), due to lower volumes of low margin thermal coal being traded however, Underlying Operating Profit increased by 21% to £3.4m (2016: £2.8m). Of that, our German associate contributed £2.0m (2016: £1.9m) as it continued to trade well, and the UK operations contributed £1.4m (2016: £0.9m), an increase of 56%. Our coal production and processing sites at House of Water and Killoch in Scotland continue to yield a high proportion of speciality coals, pricing of which has been strong. Favourable trading conditions are expected to persist in the second half of the financial year.
Industrial Services
Revenue was £28.7m (2016: £30.7m) with an Underlying Operating Profit of £0.3m (2016: £0.2m) representing a slight improvement due principally to a reduction in first half losses in the Hong Kong operation. As in the prior year, the cyclical profiling of contracts and planned site outages, particularly in Hong Kong, means that operating profit will be heavily weighted to the second half in which a strong profit performance is expected.
Logistics
Revenue of £22.8m (2016: £25.1m) and Underlying Operating Profit of £0.6m (2016: £0.7m) has been recorded. In the last financial year to 31 May 2017, this business had a strong first half and a very weak second half. Steps have been taken both to reduce overhead and to focus on areas of activity which offer better margins such that the business is now consistently recording monthly operating profits.
Specialist Earthworks
Excluding the impact of the three legacy contracts which have been reported in exceptional items, the Specialist Earthworks business recorded revenue of £38.6m (2016: £44.0m) and an underlying operating profit of £0.8m (2016: £1.1m). Activity levels have decreased as a result of greater contract selectivity and risk mitigation.
Although the Group acquired C. A. Blackwell at a price that reflected a number of historic contractual challenges and risks, the financial outcome of certain projects is materially worse than was expected and as disclosed to the Group at the time of the acquisition. As a result, and as reported in November 2017, the Group is pursuing a claim against the vendors of this business for breach of warranty. This matter may take some time to reach resolution.
The C. A. Blackwell business has two principal current contracts which support the forward outlook, being the A14 bulk earthworks project and the materials handling activity at the Hemerden tungsten mine in Devon. Both contracts are profitable and provide longevity and good visibility of future workflow. Future business opportunities with similar operational and contractual characteristics are being pursued.
Property & Energy
Property & Energy contributed £3.1m (2016: £1.4m) of revenue in the first half and a net operating loss of £0.7m (2016: £0.8m).
Property
In August 2017, we reported that the independent Red Book valuation of our property assets had been completed providing a market value of £49m and a development value of £83m compared with a book value at 31 May 2017 of £31m. This exercise demonstrated the substantial potential value gain available from the property portfolio. We will update the property valuation on a comparable basis when we announce our preliminary results. The net book value as at 30 November 2017 stood at £31.8m (2016: £32.3m). £0.8m of development spend has been incurred at Blindwells in the period.Sales of certain sites in which we have decided not to invest for longer term development returnare expected to take place in the second half of this financial year.Energy
We are pleased to report thatplanning permission has been received in principlefor an energy from waste plant and other industrial developments at the 400 acre site at Westfield, a former open cast coal mine in Fife. During the period the total capitalised expenditure on energy development projectsamounted to £1.6m (2016: £0.7m).
Legacy Asset Realisations
During the period sales of Legacy Assets amounted to £0.4m (2016: £10.2m) with minimal Underlying Operating Profit being recorded (2016: £0.6m).
The principal remaining Legacy Assets comprise loans due from the Tower Joint Venture of £17m (2016: £22m) and surplus plant and machinery. Subsequent to the period end, a further £2m of cash has been received from the disposal of surplus mining equipment from Maltby. The majority of the remaining Legacy assets are expected to be realised during calendar year 2019.
Summary
Having faced a number of market and commercial challenges over the last few years, each of the Group's businesses within Distribution & Services are at different stages of positioning themselves to deliver greater shareholder value. Each of these businesses is profitable and has robust processes for the management of risk and return. Each has differing market and financial opportunities which the Board reviews regularly, managing the allocation of capital accordingly.
Group net assets increased by 4% to £134.9m (2016: £129.2m), equivalent to 423p per share. Gearing (measured as net debt compared to net assets) at the end of November 2017 was 15% (2016: 29%). The Group's strong balance sheet provides an excellent basis from which to create sustainable returns and shareholder value.
Gordon Banham
Group Chief Executive
14 February 2018
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 November 2017
Unaudited | Unaudited | |||
six months | six months | Audited | ||
Ended | ended | year ended | ||
30 November | 30 November | 31 May | ||
2017 | 2016 | 2017 | ||
Note | £000 | £000 | £000 | |
Revenue | 150,268 | 170,921 | 342,868 | |
Cost of sales | (135,364) | (151,722) | (306,266) | |
Gross profit | 14,904 | 19,199 | 36,602 | |
Other operating income | 691 | 1,607 | 4,870 | |
Administrative expenses | (15,444) | (20,659) | (40,309) | |
Operating profit before exceptional items | 151 | 147 | 1,163 | |
Exceptional items | (2,809) | - | (470) | |
Operating (loss)/profit after exceptional items | (2,658) | 147 | 693 | |
Financial income | 328 | 153 | 1,766 | |
Financial expenses | (913) | (1,363) | (3,858) | |
Share of profit of associates and jointly controlled entities (net of tax) | 1,324 | 1,236 | 5,487 | |
(Loss)/profit before tax | (1,919) | 173 | 4,088 | |
Taxation | 5 | 633 | (159) | 694 |
(Loss)/profit for the period/year from continuing operations | (1,286) | 14 | 4,782 | |
Other comprehensive (expense)/income | ||||
Items that will not be reclassified to profit or loss | ||||
Remeasurements of defined benefit pension plans | - | (5,654) | (544) | |
Tax recognised on items that will not be reclassified to profit or loss | - | 961 | 36 | |
Items that are or may be reclassified subsequently to profit or loss | ||||
Foreign exchange translation differences | (249) | 2,173 | 2,594 | |
Effective portion of changes in fair value of cash flow hedges | (237) | 347 | 349 | |
Tax recognised on items that are or may be reclassified subsequently to profit or loss | 62 | (63) | (63) | |
Other comprehensive (expense)/income for the period/year, net of tax | (424) | (2,236) | 2,372 | |
Total comprehensive (expense)/income for the period/year | (1,710) | (2,222) | 7,154 | |
(Loss)/profit attributable to: | ||||
Equity holders of the company | (1,262) | (9) | 5,138 | |
Non-controlling interest | (24) | 23 | (356) | |
Profit for the period/year | (1,286) | 14 | 4,782 | |
Total comprehensive (expense)/income for the period/year attributable to: | ||||
Equity holders of the company | (1,686) | (2,245) | 7,510 | |
Non-controlling interest | (24) | 23 | (356) | |
Total comprehensive (expense)/income for the period/year | (1,710) | (2,222) | 7,154 | |
GAAP measures | ||||
Basic earnings per share (pence) | 7 | (3.96) | (0.03) | 16.14 |
Diluted earnings per share (pence) | 7 | (3.96) | (0.03) | 15.93 |
Non-GAAP measures (continuing) | ||||
Basic underlying earnings per share (pence) | 7 | 2.65 | 0.28 | 18.12 |
Diluted underlying earnings per share (pence) | 7 | 2.62 | 0.28 | 17.88 |
Condensed Consolidated Balance Sheet
as at 30 November 2017
Unaudited | Unaudited | Audited | |
30 November | 30 November | 31 May | |
2017 | 2016 | 2017 | |
£000 | £000 | £000 | |
Non-current assets | |||
Property, plant and equipment | 66,766 | 68,679 | 63,664 |
Investment property | 11,544 | 5,126 | 12,124 |
Intangible assets | 12,122 | 12,313 | 12,389 |
Investments in associates and jointly controlled entities | 8,206 | 2,501 | 6,917 |
Other financial assets | 87 | 369 | 7 |
Deferred tax assets | 2,715 | 3,048 | 2,844 |
101,440 | 92,036 | 97,945 | |
Current assets | |||
Assets held for sale | 3,186 | 5,040 | 5,040 |
Inventories | 22,332 | 40,533 | 29,147 |
Derivative financial instruments | 429 | 348 | 139 |
Trade and other receivables | 119,546 | 127,610 | 121,657 |
Cash and cash equivalents | 17,587 | 27,457 | 27,817 |
163,080 | 200,988 | 183,800 | |
Total assets | 264,520 | 293,024 | 281,745 |
Non-current liabilities | |||
Interest-bearing loans and borrowings | (424) | (59,441) | (38,587) |
Retirement benefit obligations | (4,209) | (9,764) | (5,103) |
Provisions | (4,421) | (3,919) | (5,344) |
Derivative financial instruments | - | - | (12) |
(9,054) | (73,124) | (49,046) | |
Current liabilities | |||
Interest-bearing loans and borrowings | (37,807) | (4,965) | (4,965) |
Trade and other payables | (81,266) | (84,047) | (88,958) |
Provisions | (600) | (867) | (600) |
Derivative financial instruments | (869) | (834) | (249) |
(120,542) | (90,713) | (94,772) | |
Total liabilities | (129,596) | (163,837) | (143,818) |
Net assets | 134,924 | 129,187 | 137,927 |
Condensed Consolidated Balance Sheet (continued)
as at 30 November 2017
Unaudited | Unaudited | Audited | |
30 November | 30 November | 31 May | |
2017 | 2016 | 2017 | |
£000 | £000 | £000 | |
Equity attributable to equity holders of the parent | |||
Share capital | 3,314 | 3,314 | 3,314 |
Share premium | 73,955 | 73,955 | 73,955 |
Other reserves | 211 | 211 | 211 |
Translation reserve | (1,237) | (1,409) | (988) |
Merger reserve | 1,022 | 1,022 | 1,022 |
Hedging reserve | 49 | 222 | 224 |
Capital redemption reserve | 1,530 | 1,530 | 1,530 |
Retained earnings | 56,075 | 49,934 | 58,630 |
134,919 | 128,779 | 137,898 | |
Non-controlling interest | 5 | 408 | 29 |
Total equity | 134,924 | 129,187 | 137,927 |
Condensed Consolidated Cash Flow Statement
for the six months ended 30 November 2017
Unaudited | Unaudited | ||
six months | six months | Audited | |
ended | ended | year ended | |
30 November | 30 November | 31 May | |
2017 | 2016 | 2017 | |
£000 | £000 | £000 | |
Cash flows from operating activities | |||
(Loss)/profit for the period/year from continuing operations | (1,286) | 14 | 4,782 |
Adjustments for: | |||
Depreciation | 4,680 | 5,277 | 11,333 |
Depreciation of mining assets | 1,015 | 402 | 862 |
Impairment of Property, Plant and Equipment | - | - | 2,655 |
Amortisation and impairment of goodwill and intangible assets | 179 | 123 | 315 |
Net finance expense | 585 | 1,210 | 2,092 |
Share of profit of jointly controlled entities (net of tax) | (1,324) | (1,236) | (5,487) |
Profit on sale of Property, Plant and Equipment | (691) | (1,738) | (1,783) |
Equity settled share-based payment expense | 143 | 245 | 471 |
Income tax (credit)/expense | (633) | 159 | (694) |
Translation of non-controlling interest | 123 | (221) | (373) |
2,791 | 4,235 | 14,173 | |
Change in inventories | 6,817 | 6,442 | 17,828 |
Change in trade and other receivables | 610 | (9,704) | 2,178 |
Change in trade and other payables | (5,628) | 6,405 | 7,641 |
Change in provisions and employee benefits | (2,111) | (897) | (38) |
2,479 | 6,481 | 41,782 | |
Interest paid | (282) | (918) | (1,306) |
Income tax received/(paid) | 2,226 | (6,206) | (6,994) |
Net cash from operating activities | 4,423 | (643) | 33,482 |
Cash flows from investing activities | |||
Proceeds from sale of property, plant and equipment | 3,405 | 3,646 | 5,284 |
Acquisition of subsidiaries (net of cash acquired) | - | - | (248) |
Acquisition of property, plant and equipment | (11,001) | (7,085) | (19,971) |
Net cash from investing activities | (7,596) | (3,439) | (14,935) |
Cash flows from financing activities | |||
Payment of finance lease liabilities | (3,003) | (5,164) | (8,612) |
Dividends paid | (1,436) | (191) | (1,053) |
(Repayments of)/proceeds from Group banking facilities | (2,510) | 15,500 | (2,500) |
Net cash from financing activities | (6,949) | 10,145 | (12,165) |
Net (decrease)/increase in cash and cash equivalents | (10,122) | 6,063 | 6,382 |
Cash and cash equivalents at the start of the period/year | 27,817 | 21,161 | 21,161 |
Effect of exchange rate fluctuations on cash held | (108) | 233 | 274 |
Cash and cash equivalents at the end of the period/year | 17,587 | 27,457 | 27,817 |
Notes to the CONDENSED Interim FINANCIAL INFORMATION
1. Basis of preparation
The condensed consolidated interim financial information set out in this statement for the six months ended 30 November 2017 and the comparative figures for the six months ended 30 November 2016 is unaudited. This financial information does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. It does not comply with IAS 34 'Interim Financial Reporting', as is permissible under the rules of the Alternative Investment Market.
The condensed consolidated interim financial information, which is neither audited nor reviewed, has been prepared in accordance with the measurement and recognition criteria of adopted International Financial Reporting Standards. This statement does not include all the information required for the full annual financial statements and should be read in conjunction with the financial statements of the Group as at and for the year ended 31 May 2017. For the year ending 31 May 2018, there are no new IFRS which apply to the condensed consolidated interim financial information.
2. Accounting policies
The accounting policies applied in preparing the condensed consolidated interim financial information are the same as those applied in the preparation of the annual financial statements for the year ended 31 May 2017, as described in those financial statements.3. Status of financial information
The comparative figures for the financial year ended 31 May 2017 are not the company's statutory financial statements for that financial year. The statutory financial accounts for the financial year ended 31 May 2017 have been reported on by the company's auditor and delivered to the Registrar of Companies. The report of the auditor was (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
4. Principal risks and uncertainties
The principal risks and uncertainties affecting the Group are unchanged from those set out in the Group's accounts for the year ended 31 May 2017. The Directors have reviewed financial forecasts and are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Group continues to adopt the going concern basis in preparing the condensed consolidatedinterim financial information.
5. Taxation
Income tax for the period is charged at 19% (2016: 19.83%). The effective tax rate, after removing the impact of JCEs is 19.5% (1.7%), representing an estimate of the annual effective rate for the full year to 31 May 2018.
6. Dividends
The final dividend of 4.5 pence per ordinary share, proposed in the 2017 annual accounts and approved by the shareholders at the Annual General Meeting on 3 October 2017, was paid on 20 October 2017.
The directors have proposed an interim dividendof 2.7pence per share (2016: 2.7p) which will be paid on 6 April 2018to shareholders on the register at the close of business on23 February 2018.This will be paid out of the Company's available distributable reserves. In accordance with IAS 1, dividends are recorded only when paid and are shown as a movement in equity rather than as a charge in the income statement.
7. Earnings per share
Six months ended 30 November 2017 Unaudited | Six months ended 30 November 2016 Unaudited | Year ended 31 May 2017 Audited | |||||||
Earnings | EPS | DEPS | Earnings | EPS | DEPS | Earnings | EPS | DEPS | |
£000 | Pence | Pence | £000 | Pence | Pence | £000 | Pence | Pence | |
Earnings before exceptional items and amortisation | 846 | 2.65 | 2.62 | 89 | 0.28 | 0.28 | 5,767 | 18.12 | 17.88 |
Exceptional items and amortisation | (2,108) | (6.61) | (6.53) | (98) | (0.31) | (0.31) | (629) | (1.98) | (1.95) |
Basic earnings per share | (1,262) | (3.96) | (3.96) | (9) | (0.03) | (0.03) | 5,138 | 16.14 | 15.93 |
Weighted average number of shares | 31,888 | 32,244 | 31,825 | 32,177 | 31,842 | 32,267 | |||
The calculation of diluted earnings per share is based on the (loss)/profit for the period/year and on the weighted average number of ordinary shares in issue in the period/year adjusted for the dilutive effect of the share options outstanding. The effect on weighted average number of shares is 356,000 (2016: 352,000), the effect on basic earnings per ordinary share is nil p (2016: nil).
8. Segmental information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the Board of Directors, since they are responsible for strategic decisions.
Distribution & Services | Property & Energy | Legacy | Corporate | Total | |
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |
30 November | 30 November | 30 November | 30 November | 30 November | |
2017 | 2017 | 2017 | 2017 | 2017 | |
£000 | £000 | £000 | £000 | £000 | |
Revenue | |||||
Total revenue | 147,247 | 3,595 | 373 | - | 151,215 |
Inter-segment revenue | (444) | (503) | - | - | (947) |
Revenue from external customers | 146,803 | 3,092 | 373 | - | 150,268 |
Underlying segment operating profit | 5,136 | (745) | 46 | (2,111) | 2,326 |
Intangible amortisation and share of profit in associates and jointly controlled entities | (2,175) | - | - | - | (2,175) |
Segment operating profit/(loss) | 2,961 | (745) | 46 | (2,111) | 151 |
Share of profit in associates and jointly controlled entities (net of tax) | 1,324 | - | - | - | 1,324 |
Net financing costs | (887) | (249) | - | 551 | (585) |
Profit/(loss) before taxation (prior to exceptional costs) | 3,398 | (994) | 46 | (1,560) | 890 |
Exceptional Costs | (2,809) | - | - | - | (2,809) |
Profit/(loss) before Taxation | 589 | (994) | 46 | (1,560) | (1,919) |
Distribution & Services | Property & Energy | Legacy | Corporate | Total | |
Unaudited | Unaudited | Unaudited | Unaudited | Unaudited | |
30 November | 30 November | 30 November | 30 November | 30 November | |
2016 | 2016 | 2016 | 2016 | 2016 | |
£000 | £000 | £000 | £000 | £000 | |
Revenue | |||||
Total revenue | 159,569 | 1,376 | 10,205 | - | 171,150 |
Inter-segment revenue | (229) | - | - | - | (229) |
Revenue from external customers | 159,340 | 1,376 | 10,205 | - | 170,921 |
Underlying segment operating profit | 4,815 | (834) | 579 | (2,424) | 2,136 |
Intangible amortisation and share of profit in associates and jointly controlled entities | (1,989) | - | - | - | (1,989) |
Segment operating profit/(loss) | 2,826 | (834) | 579 | (2,424) | 147 |
Share of profit in jointly controlled entities | 1,236 | - | - | - | 1,236 |
Net financing costs | (1,239) | (238) | - | 267 | (1,210) |
Profit/(loss) before taxation | 2,823 | (1,072) | 579 | (2,157) | 173 |
9. Condensed consolidated interim financial information
The condensed consolidated interim financial information was approved by the Board of Directors on 13 February 2018. Copies of this interim statement will be sent to all shareholders and will be available to the public from the Group's registered office.
Hargreaves Services plc published this content on 14 February 2018 and is solely responsible for the information contained herein.
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