TIDMPGY
RNS Number : 3175J
Progility PLC
29 March 2018
29 March 2018
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
Progility plc
("Progility" or "the Group")
Interim Results
Progility plc (AIM: PGY) the Professional Services, Healthcare
and Communications firm is pleased to announce its Interim Results
for the six months to 31 December 2017.
The results for the six months to 31 December 2017 have shown a
decrease in sales, down by 8.9% over the first half of last year.
The businesses' performance continues to be reported in three
segments; Professional Services (comprising the training and
recruitment businesses), Healthcare (comprising Starkstrom) and
Communications (which is comprised of our communications technology
businesses in India and Australia). Professional Services revenues
decreased in the period by 7.9% and Communications by 13.6%, whilst
Healthcare increased 3.2%.
Highlights from continuing operations
-- Revenues down 8.9% to GBP33.2 million (2016: GBP36.4 million)
-- Reported Operating profit before one-off items GBP1.0 million (2016: GBP1.6 million)
-- One-off items incurred - project overruns in Healthcare
(GBP0.37 million)) and one-off consultancy costs (GBP0.2
million)
-- Operating profit before one-off items GBP1.6 million (2016: GBP1.6 million)
-- Loss before tax GBP0.9 million (2016: Profit before tax GBP0.03 million)
-- Gross profit margin of 34.0% (2016: 34.9%)
-- Operating profit margin of 3.0% (2016: 4.5%)
-- Impact of FX year on year is minimal on sales and on operating loss
-- Further reduction in Central corporate costs
Wayne Bos, Executive Chairman, commented:
"The last six months have seen a slight decline in the
performance of the Group as a whole. Gross profit margins have
fallen compared to the previous year, due to one-off items, however
improved efficiencies and savings in Central corporate costs have
reduced the decrease in the operating profit margin.
In my statement in the 2017 Annual Report I referred to a focus
during the current financial year on embedding greater operational
controls and efficiencies, which might cause our progress to be
held back in the current year. During the first half of the year,
the Group incurred one-off costs totalling GBP568k, of which
GBP364k arose in Healthcare and relates to historic contracts which
were not adequately specified and which our improved operational
controls would not have permitted.
Overall, without these costs, gross margins would have been
maintained at 35.1% (2016: 34.9%) and operating profit would have
been GBP1.6m (2016: GBP1.6m).
In Professional Services, revenue increased in the ILX business
in UK, Australia and New Zealand, but fell in the Middle East.
Revenue fell in the recruitment businesses. Overall operating
profitability fell from GBP0.74m to GBP0.58m.
The UK-based Starkstrom Healthcare business increased revenue
3.2% to GBP6.4m, but operating profits have fallen to GBP0.014m.
There have been significant changes in the senior management team
at Starkstrom, leading to increased recruitment and one-off
consultancy costs of GBP153k. Starkstrom also incurred GBP364k of
costs on project overruns. Without these one-off costs,
Starkstrom's financial performance would have been broadly the same
as last financial year. The new team has reviewed all aspects of
the business and has taken steps in early 2018 to reduce costs.
In Communications, revenue has fallen by 13.6% and operating
profit by 22.7%. Australia's revenue is down 12.3% whilst operating
profit is up 65%. This has been achieved through significant
reduction in staff costs. A new senior management team has been
appointed along with an experienced management consultant.
India's revenue is down 14.5%, due largely to the impact of the
introduction of GST in July 2017. At the same time gross profit
margin has increased by 1.9% and overheads have been tightly
controlled. Operating profit margin has fallen from 5% to 2.6% as
result of the revenue shortfall. The second half of the year may be
impacted by exceptional redundancy costs estimated at $300k
AUD.
Central corporate costs have been reduced by 29.2% from the
prior year, a direct result of measures taken to reduce corporate
activity and greater efficiencies in the management of the
group.
Overall, we will continue to pursue our strategic objectives,
seek means to reduce costs and increase revenues, and to improve
performance across all areas of the business. There have been
important changes in the leadership of the individual businesses
which will drive forward positive changes in performance.
The second half of the year is expected to be impacted by the
continuing focus on operational controls and efficiencies. The
changes in the leadership in the individual business units are
however not expected to show benefits until the next financial
year."
Enquiries:
Progility plc
Wayne Bos, Executive Chairman 020 7371 4444
SPARK Advisory Partners
Limited (Nominated Advisor)
Mark Brady/Andrew Emmott 0203 368 3551
W H Ireland Limited (Broker)
Adrian Hadden 020 7220 1666
Executive Chairman and Financial Review
Introduction
The results for the six months to 31 December 2017 have shown a
decrease in sales, down by 8.9% over the prior period. The
businesses' performance continues to be reported in three segments;
Professional Services (comprising the training and recruitment
businesses), Healthcare (comprising Starkstrom) and Communications
(which is comprised of our communications technology businesses in
India and Australia). Professional Services revenues decreased in
the period by 7.9% and Communications by 13.6%, whilst Healthcare
increased 3.2%.
Highlights from continuing operations
-- Revenues down 8.9% to GBP33.2 million (2016: GBP36.4 million)
-- Reported Operating profit before one-off items GBP1.0 million (2016: GBP1.6 million)
-- One-off items incurred - project overruns in Healthcare
(GBP0.37 million) and one-off consultancy costs (GBP0.2
million)
-- Operating profit before one-off items GBP1.6 million (2016: GBP1.6 million)
-- Loss before tax GBP0.9 million (2016: Profit before tax GBP0.028 million)
-- Gross profit margin of 34.0% (2016: 34.9%)
-- Operating profit margin of 3.0% (2016: 4.5%)
-- Impact of FX year on year is minimal on sales and on operating loss
-- Further reduction in Central corporate costs
Overview and summary of results
The last six months have seen a slight decline in the
performance of the Group as a whole. Gross profit margins have
fallen compared to the previous year, due to one-off items, however
improved efficiencies and savings in Central corporate costs have
reduced the decrease in the operating profit margin.
In my statement in the 2017 Annual Report I referred to a focus
during the current financial year on embedding greater operational
controls and efficiencies, which might cause our progress to be
held back in the current year. During the first half of the year,
the group incurred one-off costs totalling GBP568k, of which
GBP364k arose in Healthcare and relates to historic contracts which
were not adequately specified and which our improved operational
controls would not have permitted.
Overall, without these costs, gross margins would have been
maintained at 35.1% (2016: 34.9%) and operating profit would have
been GBP1.6m (2016: GBP1.6m).
Market conditions have improved in Australia, and the Indian
operations continue to deliver positive results, despite the impact
of fiscal changes (GST) introduced in July 2017 There are
challenges to face in Professional Services where revenue has
fallen by 7.9%. The current period saw no acquisitions or
disposals, thereby allowing the management to focus on the existing
businesses and their individual operating performance. Starkstrom
in the Health sector has slightly improved in revenue but not in
profit terms.
The geographic spread of our Group has been helpful to a
developing business, particularly in the digital age; it allows
access for our offerings to more markets, as is clearly illustrated
with the international spread of the project management training
business.
Our business continues to be managed through three business
segments to maximize our ability to communicate and to deliver our
full range of products and expertise to our key clients' decision
makers across the diverse territories and time zones in which we
operate. These three segments reflect the management responsibility
and accounting arrangements used to manage and report upon the
performance of the business. Key performance indicators (KPIs) for
each business are revenue, gross profit margin and earnings before
interest, taxation, depreciation and amortisation (EBITDA).
Summary of results and operating performance from continuing
operations
The table below sets out a summary of our results:
Unaudited Unaudited
six six
months
ended months ended
31 December 31 December
2017 2016
GBP000 GBP000
Revenue 33,244 36,486
------------- -----------------------
Gross
profit 11,327 12,736
------------- -----------------------
Operating profit 1,007 1,628
------------- -----------------------
Net finance
costs (1,816) (1,600)
------------- -----------------------
Profit / (loss)
before tax (809) 28
------------- -----------------------
Professional Services
Professional Services' revenues declined 7.9% against prior
year, from GBP7.72m to GBP7.11m. Revenue increased in the ILX
business in UK, Australia and New Zealand but fell in the Middle
East. Revenue fell in the recruitment businesses. Overall operating
profitability fell from GBP0.74m to GBP0.58m.
Revenue declined in the current period, a result of pricing
pressures in the UK ILX business and also a decline in the
knowledge information management sector of the recruitment market.
Further afield the ILX Australian and New Zealand based businesses
reported improvement in both revenues and profits whilst the Dubai
business declined.
Healthcare
The UK-based Starkstrom Healthcare business increased revenue
3.2% to GBP6.4m, but operating profits have fallen to GBP0.014m.
There have been significant changes in the senior management team
at Starkstrom, leading to increased recruitment and consultancy
costs of GBP153k. Starkstrom also incurred GBP364k of costs on
project overruns. Without these one-off costs, Starkstrom's
financial performance would have been broadly the same as last
financial year. The new team has reviewed all aspects of the
business and has taken steps in early 2018 to reduce costs.
Communications
Revenue has fallen 13.6% to GBP19.7m and 22.7% in operating
profit terms to GBP0.6m compared to the prior period.
Australia's revenue is down 12.3% whilst operating profit is up
65%. This has been achieved through significant reduction in staff
costs. A new senior management team has been appointed along with
an experienced management consultant.
India's revenue is down 14.5%, largely due to the impact of the
introduction of GST in July 2017. At the same time gross profit
margin has increased by 1.9% and overheads have been tightly
controlled. Operating profit margin has fallen from 5% to 2.6% as
result of the revenue shortfall.
Central corporate costs have been reduced by 29.2% from the
prior year, a direct result of measures taken to reduce corporate
activity and greater efficiencies in the management of the Group.
Central corporate costs totalled GBP0.4m in the period, compared to
GBP0.57m in the prior year, and to GBP0.94m the year before
that.
The operating profit from continuing business in the period was
GBP1.0m, compared to GBP1.63m in the prior period. There are no
items being highlighted in either the current reporting period or
the same period last year.
The net interest charge rose to GBP1.8m (2016 GBP1.6m),
resulting in a loss before tax of GBP0.81m for the six months to
December 2017 (2016: profit before tax GBP0.03m).
The tax charge in the period was GBP0.4m (2016 GBP0.31m),
relating to corporation tax on profits in India, New Zealand and
Australia.
There were discontinued operations in the current period in
Woodspeen Training, which is the final run-off of its Southern
England operations, resulting in a GBP46k loss after tax (2016:
Loss after tax of GBP5k).
Cash flow, net debt and facilities
Cash generated from operations in the period was GBP0.39m (2016:
GBP0.38m).The Group generates operating cash flow from its product
sales, and service maintenance contracts. Capital expenditure was
GBP0.12m (2016: GBP0.30m) on Property Plant and Equipment and
GBP0.02m (2016: GBP0.03m) on product development. In the prior year
there was the final GBP0.68m deferred payment for the acquisition
of Starkstrom, but there is no such item this year.
Repayments on financing activities on borrowings and interest
were GBP0.9m whereas last year on the contrary net new loans and
interest were GBP0.1m.
At the balance sheet date the Group's debt facilities, including
unpaid interest, comprised GBP0.3m of invoice discounting facility
(2016 GBP1.14m) and GBP27.2m of shareholder loans (including
convertible loan notes) (2016 GBP24.3m).
At the same date the Group's cash and cash equivalents amounted
to GBP2.37m (2016 GBP2.93m).
Shareholder loans
The Group's acquisitions have been funded in recent years
entirely through the issue of 12% loan notes which are listed on
the Channel Islands Stock Exchange.
The subscriber for all these notes has been DNY Investments
Limited, a company which is an asset of the DNY Trust, a family
trust of which Wayne Bos, Executive Chairman, is a discretionary
beneficiary and of which Praxis Trustees Limited, the company's
controlling shareholder, is trustee. Praxis Trustees remain
supportive of the Group's strategy.
Dividend
The Board does not recommend a dividend for the period ended 31
December 2017. Given the Group's strategic direction and historic
financial performance, the Board does not envisage the Company's
paying a dividend for the foreseeable future.
Financial Structure
Whilst continuing to pursue our strategic objectives, to reduce
costs and increase revenues, and to improve performance across all
areas of the business, we are also looking to address the Group
financial structure to meet the Group's future needs and will
report to shareholders as and when appropriate.
Overall, we will continue to pursue our strategic objectives,
seek means to reduce costs and increase revenues, and to improve
performance across all areas of the business. There have been
important changes in the leadership of the individual businesses
which will drive forward positive changes in performance.
The second half of the year is expected to be impacted by the
continuing focus on operational controls and efficiencies. The
changes in the leadership in the individual business units are
however not expected to show benefits until the next financial
year.
By order of the Board
Wayne M Bos
Executive Chairman
28 March 2018
Unaudited consolidated statement of Comprehensive Income for the
six months ended 31 December 2017
Unaudited Unaudited Audited
six months six months year
ended ended ended
31.12.2017 31.12.2016 30.06.17
Continuing operations Note GBP000 GBP000 GBP000
Revenue 3 33,244 36,486 74,682
Cost of Sales (21,917) (23,750) (50,141)
------------ ------------ ----------
Gross profit 11,327 12,736 24,541
Administrative and
distribution expenses
- excluding highlighted
items (10,320) (11,108) (22,095)
Administrative and
distribution expenses
- highlighted items - - 1,000)
-------------------------- ----- ------------ ------------ ----------
Total administrative
and distribution
expenses (10,320) (11,108) (21,095)
Operating (loss)/profit
before highlighted
items 1,007 1,628 2,446
Highlighted items - - 1,000
-------------------------- ----- ------------ ------------ ----------
Operating (loss)/profit 1,007 1,628 3,446
Finance income 57 74 132
Finance costs (1,873) (1,674) (3,458)
------------ ------------ ----------
(Loss)/profit before
tax and highlighted
items (809) 28 (880)
Highlighted items - - 1,000
-------------------------- ----- ------------ ------------ ----------
(Loss)/profit before
tax (809) 28 120
Tax charge (416) (306) (568)
------------ ------------ ----------
(Loss)/profit after
tax (1,225) (278) (448)
Discontinued operation
(Loss)/profit after
tax from discontinued
operations 4 (46) (5) 1
------------ ------------ ----------
(Loss)/profit for
the period attributable
to equity shareholders (1,271) (283) (447)
------------ ------------ ----------
Items that may be
reclassified to profit
or loss
------------ ------------ ----------
Currency translation
differences on foreign
operations (222) 440 600
------------ ------------ ----------
Other comprehensive
income, net of tax (222) 440 600
------------ ------------ ----------
Total comprehensive
(loss)/profit (1,493) 157 153
============ ============ ==========
(Loss)/earnings per
share restated
Basic and Diluted 5 (79.55)p (17.38)p (28.02)p
Unaudited consolidated statement of Financial Position as at 31
December 2017
Unaudited Unaudited Audited
As at As at As at
31.12.2017 31.12.2016 30.6.2017
GBP000 GBP000 GBP000
Assets
Non-current assets
Property, plant and
equipment 785 1,097 937
Intangible assets 19,423 19,527 19,535
Deferred tax asset 806 839 825
------------ ------------ -----------
Total non-current
assets 21,014 21,463 21,297
------------ ------------ -----------
Current assets
Inventories 3,942 4,389 3,927
Trade and other receivables 17,814 18,040 17,837
Other current assets 3,313 3,288 3,088
Tax receivable - - -
Cash and cash equivalents 2,374 2,930 3,305
------------ ------------ -----------
Total current assets 27,443 28,647 28,157
Total assets 48,457 50,110 49,454
------------ ------------ -----------
Current liabilities
Trade and other payables (24,473) (24,071) (23,797)
Deferred consideration - - -
Provisions (2,127) (2,694) (2,144)
Tax liabilities (624) (205) (443)
Bank and shareholder
loans (707) (1,521) (1,261)
------------ ------------ -----------
Total current liabilities (27,931) (28,491) (27,645)
------------ ------------ -----------
Non-current liabilities
Shareholder loans (19,513) (19,039) (19,302)
Deferred tax liability (186) (217) (186)
Provisions (99) (142) (100)
------------ ------------ -----------
Total non-current
liabilities (19,798) (19,398) (19,588)
------------ ------------ -----------
Total liabilities (47,729) (47,889) (47,233)
------------ ------------ -----------
Net assets 728 2,221 2,221
============ ============ ===========
Issued share capital 19,967 19,967 19,967
Share premium 114 114 114
Other reserve 75 75 75
Merger reserve (14,854) (14,854) (14,854)
Own shares in trust (2) (2) (2)
Share option reserve 57 47 57
Retained earnings (5,338) (3,897) (4,067)
Foreign currency translation
reserve 709 771 931
Total equity 728 2,221 2,221
============ ============ ===========
Unaudited consolidated Cash Flow Statement for the six months
ended 31 December 2017
Unaudited Unaudited Audited
Six months Six months Year ended
ended ended 30.6.2017
31.12.2017 31.12.2016
GBP000 GBP000 GBP000
Operating profit/(loss) 961 1,623 3,446
Adjustments for:
Depreciation and amortisation 351 395 743
Loss on fixed asset
disposal - - -
Impairment of intangibles - - -
Gain on bargain purchase - - -
Share option charge - 11 22
(increase) in inventories (57) (949) (499)
(increase) in trade
and other receivables (563) (2,314) (2,077)
Increase/(decrease)
in trade and other
payables (200) 1,755 (276)
Exchange difference
on consolidation (97) (142) 31
------------ ------------ -----------
Cash generated from
operations 395 379 1,390
Income tax paid (227) (360) (357)
Net cash generated
from operations 168 19 1,033
------------ ------------ -----------
Investing activities
Interest received 57 73 132
Purchases of property
and equipment (121) (305) (465)
Capitalised expenditure
on product development (17) (28) (80)
Acquisition of subsidiaries
(net of cash acquired) - (681) (681)
------------ ------------ -----------
Net cash used in investing
activities (81) (941) (1,094)
------------ ------------ -----------
Financing activities
Proceeds from borrowings - 191 -
Repayment of borrowings (611) - (347)
Interest costs paid (352) (88) (28)
Net cash from financing
activities (963) 103 (375)
------------ ------------ -----------
Net change in cash
and cash equivalents (876) (819) (436)
Cash and cash equivalents
at start of period 3,305 3,564 3,564
Foreign exchange rate
differences (55) 185 177
Cash and cash equivalents
at end of period 2,374 2,930 3,305
============ ============ ===========
Cash and cash equivalents
comprise:
Cash in hand and at
bank 2,374 2,930 3,305
Bank overdraft - - -
2,374 2,930 3,305
============ ============ ===========
Unaudited consolidated Statement of Changes in Equity for the
six months ended 31 December 2017
Called Own Foreign
up Share shares Share currency
share premium Other Merger in option translation Retained
capital account reserve reserve trust reserve reserve earnings Total
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at
30.6.2016 19,967 114 75 (14,854) (2) 42 331 (3.620) 2,053
Options
granted - - - - - 11 - - 11
Options
lapsed
and waived - - - - - (6) - 6 -
Transactions
with owners - - - - - 5 - 6 11
-------- -------- -------- --------- -------- -------- ------------ --------- --------
Profit
for the
year - - - - - - - (283) (283)
Other
comprehensive
income:
Foreign
currency
translation
adjustment - - - - - - 440 - 440
-------- -------- -------- --------- -------- --------
Total
comprehensive
income for
the
year - - - - - - 440 (283) 157
-------- -------- -------- --------- -------- -------- ------------ --------- --------
As at
30.12.2016 19,967 114 75 (14,854) (2) 47 771 (3,897) 2,221
======== ======== ======== ========= ======== ======== ============ ========= ========
Called Own Foreign
up Share shares Share currency
share premium Other Merger in option translation Retained
capital account reserve reserve trust reserve reserve earnings Total
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
As at
30.6.2017 19,967 114 75 (14,854) (2) 57 931 (4,067) 2,221
Options
granted - - - - - - - - -
Options
lapsed
and waived - - - - - - - - -
Transactions
with owners - - - - - - - - -
-------- -------- -------- --------- -------- -------- ------------ --------- --------
Profit
for the
year - - - - - - - (1,271) (1,271)
Other
comprehensive
income:
Foreign
currency
translation
adjustment - - - - - - (222) - (222)
roundings
-------- -------- -------- --------- -------- --------
Total
comprehensive
income for
the
year - - - - - - (222) (1,271) (1,493)
-------- -------- -------- --------- -------- -------- ------------ --------- --------
As at
30.12.2017 19,967 114 75 (14,854) (2) 57 709 (5,338) 728
======== ======== ======== ========= ======== ======== ============ ========= ========
Notes to the unaudited accounts:
1. Basis of preparation and accounting policies
These interim financial statements are for the six months ended
31 December 2017. They have been prepared based on the measurement
and recognition principles of International Financial Reporting
Standards as adopted by the European Union (EU-IFRS) and IFRC
interpretations issued and effective at the time of preparing these
statements. They do not include all of the information required for
full annual financial statements, and should be read in conjunction
with the audited financial statements of Progility plc for the year
ended 30 June 2017. The financial information for the period ended
31 December 2017 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 period
ended 30 June 2017 have been filed with the Registrar of Companies
and can be found on the Group's website www.progility.com. 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. These interim financial statements have
been prepared under the historical cost convention as modified by
the revaluation of derivative financial instruments. These interim
financial statements have been prepared in accordance with the
accounting policies detailed in the Group's financial statements
for the year ended 30 June 2017 except as documented herein. The
accounting policies have been applied consistently throughout the
Group for the purposes of preparation of these interim financial
statements. The interim financial statements are presented in
Sterling (GBP), which is also the functional currency of the
Company.
These interim financial statements have been approved for issue
by the board of directors. It should be noted that accounting
estimates and assumptions are used in preparation of the interim
financial information. Although these estimates are based on
management's best knowledge and judgement of current events and
actions, actual results may ultimately differ from those estimates.
The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the
interim financial information, are set out in note 2 to the interim
financial information. In the future, actual experience may deviate
from these estimates and assumptions.
The consolidated financial statements include the financial
statements of Progility plc and its subsidiaries. There are no
associates or joint ventures to be considered.
2. Accounting estimates and key judgements
The preparation of the interim financial statements in
conformity with IFRS requires management to make estimates and
assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the disclosure of contingent
liabilities at the date of the financial statements. Such estimates
and assumptions are based on historical experience and various
other factors that are believed to be reasonable in the
circumstances and constitute management's best judgment of
conditions at the date of the financial statements. Key estimates
and judgments relate to impairment analysis assumptions, revenue
recognition over exam vouchers, stock movement and deferred tax
assets. In the future, actual experience may deviate from these
estimates and assumptions, which could affect the interim financial
statements as the original estimates and assumptions are modified,
as appropriate, in the period in which the circumstances
change.
Key judgement - Goodwill
In respect of acquisitions, the Group measures goodwill at the
acquisition date as:
-- The fair value of the consideration transferred; plus the
recognised amount of any non-controlling interests in the acquired;
plus
-- The fair value of the existing equity interest in the acquiree; less
-- The net recognised amount (generally fair value) of the
identifiable assets acquired and liabilities assumed.
When the excess is negative, the negative goodwill is recognised
immediately in the profit and loss. Costs related to the
acquisition, other than those associated with the issue of debt or
equity securities, are expensed as incurred.
Key judgement - Going concern
The Directors, after making enquiries of its loan note holders,
considering its financing arrangements and based on its cash flow
projections, have a reasonable expectation that the Company and the
Group will have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to
adopt the going concern basis in preparing the annual report and
financial statements.
3. Segmental reporting
In accordance with IFRS 8 the Group's operating segments are
based on the reports reviewed by the Executive Directors that are
used to make strategic decisions.
The Group reports its results in three segments:-
Professional Services - The Group's Professional operations
comprise the training, recruitment and consultancy activities
operating in the UK, Dubai, Australia and New Zealand.
Healthcare - The Group's Health operations comprise the
activities of Starkstrom Limited.
Communications - The Group's Communications operations comprise
the technology solutions goods and services businesses which
operate in Australia and India.
Central corporate costs comprise Head Office functions,
including Finance, Treasury and Human Resources
Segment profit or loss consists of earnings before interest, tax
and highlighted items. This measurement excludes the effects of
non-recurring expenditure from the operating segments such as
restructuring costs and purchased intangibles amortisation.
Interest income and expenditure are not allocated to segments as
this type of activity is driven by the central treasury activities,
which manages the cash position of the Group.
Six months
Six months ended Year ended
ended 31.12.2017 31.12.2016 30.6.2017
Segment Segment Segment
Profit/ Profit/ Profit/
Revenue (loss) Revenue (loss) Revenue (loss)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Professional services 7,113 580 7,719 737 15,726 1,278
Healthcare 6,455 140 6,255 622 14,281 1,433
Communications 19,718 642 22,810 831 45,091 688
Elimination of Professional
Services discontinued
operations (42) 46 (298) 5 (416) (1)
Central corporate
costs (401) (567) (952)
--------- --------- -------- --------- -------- ---------
Total segmental
result 33,244 1,007 36,486 1,628 74,682 2,446
========= ======== ========
Highlighted items - - 1,000
--------- --------- ---------
Operating profit
from continuing
operations 1,007 1,628 3,446
Net finance costs (1,816) (1,600) (3,326)
Profit before tax
from continuing
operations (809) 28 120
========= ========= =========
Adjusting for highlighted
items
Reversal of provisions
- Non-recurring, - - (1,000)
Impairment charges
- Non-recurring - - -
--------- --------- ---------
- - (1,000)
========= ========= =========
As at 31.12.2017 As at 31.12.2016 As at 30.6.2017
Segmental Segmental Segmental Segmental Segmental Segmental
assets liabilities assets liabilities assets liabilities
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Professional
services 24,470 26,820 22,052 24,979 23,021 26,486
Healthcare 4,950 3,690 3,510 3,757 3,746 3,791
Communications 19,037 17,219 24,548 19,153 22,687 16,956
---------- ------------- ---------- ------------- ---------- -------------
Total 48,457 47,729 50,110 47,889 49,454 47,233
========== ============= ========== ============= ========== =============
4. Discontinued operations
In February 2016, Woodspeen Training Limited, part of the
Group's Professional Services sector, decided to discontinue
operations in the south of England and provide all training
services in the north of the country. The revenues, expenses and
pre-tax profit of the discontinued operations for the current
period and the prior period are detailed below.
Six months Six months
ended 30.12.2017 ended 30.12.2016
GBP'000 GBP'000
Revenue 42 298
Expenses (88) (303)
Pre-tax loss (46) (5)
Taxation - -
------------------ ------------------
Post-tax loss (46) (5)
================== ==================
Basic and diluted loss per - -
share from discontinued operations
5. Loss per share
This has been calculated on the loss for the period of
GBP1,070,631 (2016: Loss GBP283,000) and the number of shares used
was 1,597,332 as restated (2016: 1,597,332), being the restated
number of share in issue at the end of the period.
The ordinary shares were reorganized on 22 Dec 2017 with
199,666,880 shares of GBP0.10 being converted into 399,333 of GBP50
each, which were then amended to become 1,597,332 ordinary shares
of GBP0.0025 and 399,333 deferred shares of GBP49.99.
Consequently at 31 Dec 2017 the number of ordinary shares now in
issue is 1,597,332.
6. Dividends
No dividend is proposed for the six months ended 31 December
2017.
7. Loan Notes
The unsecured convertible 12 % loan notes issued by Progility
Plc with a redemption date of 31.12.2017 have been varied to extend
the redemption date to 31.12.2019 on the same terms as the original
agreement.
8. Copies of Interim financial statements
The Interim Results will be posted on the Company's web site
www.progility.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PGUAAWUPRGQR
(END) Dow Jones Newswires
March 29, 2018 02:00 ET (06:00 GMT)
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