RNS Number:4364K
Wyatt Group PLC
21 December 2007
WYATT GROUP PLC
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2007
CHAIRMAN'S STATEMENT
It is a pleasure to be able to report on yet another positive period for the
Group. In the 6 months to 30 September 2007 the Group made an operating profit
before joint venture, and interest of �222,836 (2006: �63,746 ). This was on a
turnover of �2,109,753 (2006: �1,172,136) which represents an increase of 80%.
It has been a period of significant activity and I can report on each subsidiary
as follows:
PES provides a range of employment related consultancy and support services
focused around human resources, reward and employment tax. The team has again
made tremendous progress in the first half of the year. As well as producing an
excellent set of results for the period PES has added to its impressive client
list and has continued to develop its range of products and services. A change
of legislation following the recent pre budget report has significantly reduced
the income stream from one of its tax products. This loss of revenue has
impacted the company and therefore the Group's second half performance. However,
the long term prospects for the company are still encouraging and the
management team can now develop the business in a more predictable environment.
On 28th September 2007 the Group announced the acquisition of Health & Safety
Department Limited. Now trading as PES Health & Safety the business provides
specialist health and safety support for UK companies. The team works very
closely alongside PES and has helped to broaden the range of consultancy
services offered to employers. The transition into the Group has been very
smooth and the trading outlook is positive.
Risksmart provides an on-line fire risk assessment solution for small and medium
sized businesses. As previously reported the long awaited Fire Safety
legislation became effective on 1st October 2006. This was hoped to be the
turning point that the team was waiting for. However, despite its best efforts
Risksmart has not made the progress that we were expecting resulting in a loss
in the first half which has continued into the second half. This performance
coupled with the Group reassessing its longer term strategy means that the Board
now believes that it is in the best interests of shareholders to review the
position of Risksmart in the Group. We have considered a number of options
including a management buy out and we expect to be able to announce further news
on this in the very near future.
Wyatt Biotech is the Group's drug testing operation. On 28th September we
announced that the business would now be run as a joint venture between Wyatt
and the US inventor. Since then some of the problems with production have been
overcome and we have been able to demonstrate live working products at a recent
exhibition. The results are encouraging and we are keeping a close eye on
developments. In the meantime Wyatt has limited its exposure in this business.
AMS is a regional medical screening business based in the South West of England.
At the time of the flotation the Group made a small investment in this company.
However the Group has recently decided to end its investment in this sector and
as a result has impaired its investment in AMS.
Prospects
Overall the Group has made significant strides forward over the last 18 months.
This has largely been due to the continued success of PES. Having transferred
Wyatt Biotech into a joint venture and taken steps to dispose of Risksmart the
Group is now building its strategy around PES and is continuing to build on its
success. We are currently exploring a number of opportunities to acquire
businesses to help grow the customer base and service offering. All of the
target businesses are in the employment services space and have been
strategically identified to fit alongside PES. We believe that building on the
success of the Group to date is in the best interests of shareholders and we
look forward to some exciting times ahead.
R Holt
Chairman
21 December 2007
Enquiries:
Wyatt Group PLC www.wyattgroup.co.uk
Bob Holt, Chairman 07778798816
David Curtis, Finance Director 0845 450 9110
Blue Oar Securities Plc www.blueoarsecurities.co.uk
John Wakefield / Marc Davies 0117 933 0020
UNAUDITED CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
For the period ended 30 September 2007
Note 6 months to 6 months to 12 months to
30 September 30 September 31 March
2007 2006 2007
� � �
Revenue 2,109,753 1,172,136 2,971,100
Cost of sales (531,959) (384,258) (781,047)
Gross profit 1,577,794 787,878 2,190,053
Administrative expenses (1,287,384) (724,132) (1,836,391)
Impairment of investments (67,574) - -
Operating profit 222,836 63,746 353,662
Share of operating loss in joint (16,114) (43,037) (31,963)
venture
Finance costs (20,016) (39,523) (80,427)
Profit/(loss) before taxation 186,706 (18,814) 241,272
Income tax expense (12,908) - -
Profit/(loss) after taxation 173,798 (18,814) 241,272
Attributable to:
Equity holders of the company 188,955 (17,538) 254,660
Minority interests (15,157) (1,276) (13,388)
Profit/(loss) for the period 173,798 (18,814) 241,272
Basic and diluted earnings per share 2 1.37p (0.14)p 2.01p
UNAUDITED CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
As at 30 September 2007
Note As at 30 As at 30 As at 31
September September March
2007 2006 2007
� � �
ASSETS
Non-current assets
Intangible assets 1,285,007 1,254,163 1,285,007
Property, plant and equipment 183,121 231,722 207,312
Investments 24,127 67,574 67,574
Investment in joint venture:
Share of gross assets 12,356
Share of gross liabilities (28,469)
Transfer to current liabilities 16,113
- - -
1,492,255 1,553,459 1,559,893
Current assets
Inventories 33,274 19,118 15,500
Trade and other receivables 748,446 594,333 586,904
Total current assets 781,720 613,451 602,404
Total assets 2,273,975 2,166,910 2,162,297
LIABILITIES
Current liabilities
Trade and other payables (900,447) (462,641) (685,157)
Current tax liabilities (12,908) - -
Borrowings (527,680) (1,034,236) (629,568)
Provisions (200,000) - (360,000)
Total current liabilities (1,641,035) (1,496,877) (1,674,725)
Non-current liabilities
Borrowings - (46,728) (28,430)
Provisions (920,835) (1,280,835) (920,835)
Total non-current liabilities (920,835) (1,327,563) (949,265)
Total liabilities (2,561,870) (2,824,440) (2,623,990)
Net liabilities (287,895) (657,530) (461,693)
EQUITY
Share capital 126,594 126,594 126,594
Share premium account 1,902,700 1,902,700 1,902,700
Merger reserve 41,802 41,802 41,802
Other reserve (45,640) - (45,640)
Profit and loss account (2,157,231) (2,618,384) (2,346,186)
131,775 (547,288) (320,730)
Minority interests (156,120) (110,242) (140,963)
Total Equity (287,895) (657,530) (461,693)
UNAUDITED CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT
For the period ended 30 September 2007
Note 6 months to 6 months to 12 months to 31
30 September 30 September March
2007 2006 2007
� � �
Cash flows from operating activities
Operating profit 222,836 63,746 353,662
Depreciation 66,222 59,971 123,580
Impairment of investments 67,574 - -
(Increase)/decrease in inventories (17,774) 32,909 36,527
Increase in trade and other receivables (161,542) (348,318) (328,772)
Increase in trade payables 199,176 96,465 270,203
Increase in other reserves - - (45,460)
Decrease in provisions (160,000) - -
Cash generated from operations 216,492 (95,227) 409,740
Interest paid (20,016) (39,523) (80,427)
Net cash from operating activities 196,476 (134,750) 329,313
Cash flows from investing activities
Acquisition of subsidiary net of cash acquired - - (3,106)
Purchase of property, plant and equipment (42,031) (51,747) (89,738)
Payments to acquire investments (24,127) - -
Net cash used in investing activities (66,158) (51,747) (92,844)
Cash flows from financing activities
Repayments of borrowings (26,569) (22,274) (42,236)
Net cash used in financing activities (26,569) (22,274) (42,236)
Net increase/(decrease) in cash and cash equivalents 3 103,749 (208,771) 194,233
Cash and cash equivalents at beginning of the period (578,687) (772,920) (772,920)
Cash and cash equivalents at end of the period (474,938) (981,691) (578,687)
UNAUDITED NOTES TO THE ACCOUNTS
For the period ended 30 September 2007
1 BASIS OF PREPARATION
These interim condensed consolidated financial statements are for the six months
ended 30 September 2007. They have been prepared in accordance with the
requirements of IFRS 1 "First-time Adoption of International Financial Reporting
Standards" relevant to interim reports, because they are part of the period
covered by the Group's first IFRS financial statements for the year ended 31
March 2008. They do not include all of the information required for full annual
financial statements, and should be read in conjunction with the consolidated
financial statements of the Group for the year ended 31 March 2007.
These condensed consolidated interim statements have been prepared under the
historical cost convention.
These condensed consolidated interim financial statements (the interim financial
statements) have been prepared in accordance with the accounting policies set
out below which are based on the recognition and measurement principles of IFRS
in issue as adopted by the European Union (EU) and are effective at 31 March
2008 or are expected to be adopted and effective at 31 March 2008, our first
annual reporting date at which we are required to use IFRS accounting standards
adopted by the EU.
Wyatt Group PLC's consolidated financial statements were prepared in accordance
with United Kingdom Accounting Standards (United Kingdom Generally Accepted
Accounting Practice) until 31 March 2007. The date of transition to IFRS was 1
April 2006. The comparative figures have been restated to reflect changes in
accounting policies as a result of adoption of IFRS. The disclosures required
by IFRS 1 concerning the transition from UK GAAP to IFRS are given in the
reconciliation schedules, presented and explained in note 4.
The accounting policies have been applied consistently throughout the Group for
the purposes of preparation of these condensed consolidated interim financial
statements.
2 EARNINGS PER SHARE
The basic earnings per share is based upon an equity profit of �188,955 (2006:
�17,538 loss) and 12,659,444 (2006: 12,659,444) ordinary shares of 1p each,
being the weighted average number of shares in issue during the period.
The diluted earnings per share is identical to the basic earnings per share as
the profit attributable to ordinary shareholders and weighted average number of
ordinary shares for the purpose of calculating the diluted earnings per ordinary
share are identical to those used for basic earnings per ordinary share. This is
because the exercise price of all the share options in issue during the year was
greater than the average market price of the share throughout the year. In the
prior year, the diluted loss per share was identical to the basic loss per
share. This is because the exercise of share options would have the effect of
reducing the loss per ordinary share and is therefore not dilutive.
3 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
6 months to 6 months to 12 months to
30 September 30 September 31 March
2007 2006 2007
� � �
Increase/(decrease) in cash and cash equivalents 103,749 (208,771) 194,233
in the period
Cash outflow from borrowings 26,569 22,274 42,236
Change in net debt resulting from cash flows 130,318 (186,497) 236,469
Net debt at 1 April 2007 (657,998) (894,467) (894,467)
Net debt at 30 September 2007 (527,680) (1,080,964) (657,998)
4 ADOPTION OF INTERNATIONAL REPORTING STANDARDS (IFRS)
This note explains how Wyatt Group PLC's financial performance for the six
months ended 30 September 2007 and its financial position as at that date
presented under IFRS differs to that reported under UK GAAP.
As at 30 As at 31
September March
2006 2007
� �
Net liabilities under UK GAAP (727,536) (594,764)
Adjustments:
Add back of goodwill amortisation 70,006 133,071
Net liabilities under IFRS (657,530) (461,693)
Profit/(loss) for the period under UK GAAP (87,544) 121,589
Adjustments:
Add back of goodwill amortisation 70,006 133,071
Profit/(loss) under IFRS (17,538) 254,660
IFRS are new financial reporting standards applicable to the Group for the first
time in the interim report for the six months to 30 September 2007. The Group is
required to apply these new standards retrospectively to the Group's results for
all comparative financial information, as if the Group had reported under IFRS
in previous accounting periods.
IFRS 1 permits companies adopting IFRS for the first time to take certain
exemptions from the full requirements of IFRS in the transition period. These
interim financial statements have been prepared on the basis of taking the
following exemptions:
* business combinations have not been restated to comply with IFRS 3
"Business Combinations". Goodwill arising from these business combinations
prior to the transition date of �1,560,027 has not been restated other than as
set out below.
Goodwill recognised by the Group on the acquisitions of Risksmart Limited and
Premier Employer Solutions Limited and Premier Employee Benefits Limited under
UK GAAP was amortised over a period of 10 years. Under IFRS goodwill is not
amortised, but tested annually for impairment. The goodwill amortisation charge
recognised in accordance with UK GAAP in 2006 was written back. The result of
these adjustments is to increase the profit in the income statement for the six
months ending 30 September 2006 by �70,006 and by �133,071 for the year ending
31 March 2007 and increase the carrying value of the goodwill by the same
amounts.
Wyatt Group PLC performed an impairment review of goodwill as at 30 September
2007. As a result of this review no charge has been recognised in retained
earnings as at that date.
There is no change to the underlying performance of the Group. Restatements
arise only as a result of the above changes to the treatment of goodwill.
This statement has been prepared by management using its best knowledge of the
expected standards and interpretations of the International Accounting Standards
Board (IASB), facts, circumstances and accounting policies that will be applied
when the company prepares its first set of IFRS financial statements as at 31
March 2008. Until this time it is possible that the IFRS comparatives for 2006
and the accompanying opening balance sheet in this document may require
adjustment.
5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES UNDER IFRS
The significant accounting policies adopted in the preparation of the Group's
IFRS financial information are set out below:
Basis of preparation
The consolidated financial information has been prepared on the historical cost
basis. The consolidated financial information is presented substantially in
accordance with IAS 1 - Presentation of financial statements. However this
format and presentation may require modification as best practice develops and
any further guidance is issued.
Basis of consolidation
The consolidated financial statements comprise the financial statements of Wyatt
Group PLC and all of its subsidiaries. The financial statements of the
subsidiaries are prepared in accordance with UK GAAP. Adjustments are made in
the consolidated accounts to bring into line any dissimilar accounting policies
that may exist between UK GAAP and IFRS.
All intercompany balances and transactions have been eliminated in full.
Subsidiaries are consolidated from the date on which control is transferred to
the Group and cease to be consolidated from the date on which control is
transferred out of the Group.
Associates/Joint ventures
Entities whose economic activities are controlled jointly by the Group and by
other ventures independent of the Group are accounted for using the equity
method.
Associates are those entities over which the Group has significant influence but
which are neither subsidiaries nor interests in joint ventures. Investments in
associates are recognised initially at cost and subsequently accounted for using
the equity method. Acquired investments in associates are also subject to
purchase method accounting. However, any goodwill or fair value adjustment
attributable to the share in the associate is included in the amount recognised
as investment in associates.
All subsequent changes to the share of interest in the equity of the associate
are recognised in the Group's carrying amount of the investment. Changes
resulting from the profit or loss generated by the associate are reported in
"share of profits of associates" in the consolidated income statement and
therefore affect net results of the Group. These changes include subsequent
depreciation, amortisation or impairment of the fair value adjustments of assets
and liabilities.
Items that have been recognised directly in the associate's equity are
recognised in the consolidated equity of the Group. However, when the Group's
share of losses in an associate equals or exceeds its interest in the associate,
including any unsecured receivables, the Group does not recognise further
losses, unless it has incurred obligations or made payments on behalf of the
associate. If the associate subsequently reports profits, the investor resumes
recognising its share of those profits only after its share of the profits
equals the share of losses not recognised.
Unrealised gains on transactions between the Group and its associates are
eliminated to the extent of the Group's interest in the associates. Unrealised
losses are also eliminated unless the transaction provides evidence of an
impairment of the asset transferred. Amounts reported in the financial
statements of associates have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the Group.
Goodwill
Goodwill representing the excess of the cost of acquisition over the fair value
of the Group's share of the identifiable net assets acquired, is capitalised and
reviewed annually for impairment. Goodwill is carried at cost less accumulated
impairment losses. Negative goodwill is recognised immediately after
acquisition in the income statement.
Goodwill written off to reserves prior to date of transition to IFRS remains in
reserves. There is no re-instatement of goodwill that was amortised prior to
transition to IFRS. Goodwill previously written off to reserves is not written
back to profit or loss on subsequent disposal.
Revenue
Revenue is measured by reference to the fair value of consideration received or
receivable by the Group for goods supplied and services provided, excluding VAT
and trade discounts. Revenue is recognised upon the performance of services or
transfer of risk to the customer.
Property, plant and equipment
Property, plant and equipment is stated at cost or valuation, net of
depreciation and any provision for impairment. Leasehold property is included
in property, plant and equipment only where it is held under a finance lease.
The gain or loss arising on the disposal of an asset is determined as the
difference between the disposal proceeds and the carrying amount of the asset
and is recognised in the income statement.
Depreciation
Depreciation is charged so as to write off the cost of the assets over their
estimated useful lives and is calculated on a straight line basis as follows:
Plant and machinery 25% - 33%
Fixtures, fittings and equipment 20%
Impairment testing of goodwill, other intangible assets and property, plant and
equipment
For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash-generating
units). As a result, some assets are tested individually for impairment and
some are tested at cash-generating unit level. Goodwill is allocated to those
cash-generating units that are expected to benefit from synergies of the related
business combination and represent the lowest level within the Group at which
management monitors the related cash flows.
Goodwill, other individual assets or cash-generating units that include
goodwill, other intangible assets with an indefinite useful life, and those
intangible assets not yet available for use are tested for impairment at least
annually. All other individual assets or cash-generating units are tested for
impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset's or
cash-generating unit's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of fair value, reflecting market conditions
less costs to sell, and value in use based on an internal discounted cash flow
evaluation. Impairment losses recognised for cash-generating units, to which
goodwill has been allocated, are credited initially to the carrying amount of
goodwill. Any remaining impairment loss is charged pro rata to the other assets
in the cash generating unit. With the exception of goodwill, all assets are
subsequently reassessed for indications that an impairment loss previously
recognised may no longer exist.
Investments
All investments are initially recorded at cost, being the fair value of the
consideration given and including acquisition charges associated with the
investment. Subsequently, they are reviewed for impairment if events or changes
in circumstances indicate the carrying value may not be recoverable.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
includes materials and direct labour. Net realisable value is based on estimated
selling price, less further costs expected to be incurred to completion and
disposal. Provision is made for obsolete, slow moving or defective items where
appropriate.
Pension Costs
The amount of pension contributions payable in the period is charged to the
profit and loss account as incurred.
Leased assets
In accordance with IAS 17, the economic ownership of a leased asset is
transferred to the lessee if the lessee bears substantially all the risks and
rewards related to the ownership of the leased asset. The related asset is
recognised at the time of inception of the lease at the fair value of the leased
asset or, if lower, the present value of the minimum lease payments plus
incidental payments, if any, to be borne by the lessee. A corresponding amount
is recognised as a finance leasing liability. Leases of land and buildings are
split into land and buildings elements according to the relative fair values of
the leasehold interests at the date of entering into the lease agreement.
The interest element of leasing payments represents a constant proportion of the
capital balance outstanding and is charged to the income statement over the
period of the lease.
All other leases are regarded as operating leases and the payments made under
them are charged to the income statement on a straight line basis over the lease
term. Lease incentives are spread over the term of the lease.
Taxation
Current tax is the tax currently payable based on taxable profit for the year.
Deferred income taxes are calculated using the liability method on temporary
differences. Deferred tax is generally provided on the difference between the
carrying amounts of assets and liabilities and their tax bases. However,
deferred tax is not provided on the initial recognition of goodwill, nor on the
initial recognition of an asset or liability unless the related transaction is a
business combination or affects tax or accounting profit.
Deferred tax on temporary differences associated with shares in subsidiaries and
joint ventures is not provided if reversal of these temporary differences can be
controlled by the Group and it is probable that reversal will not occur in the
foreseeable future. In addition, tax losses available to be carried forward as
well as other income tax credits to the Group are assessed for recognition as
deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred
tax assets are recognised to the extent that it is probable that the underlying
deductible temporary differences will be able to be offset against future
taxable income. Current and deferred tax assets and liabilities are calculated
at tax rates that are expected to apply to their respective period of
realisation, provided they are enacted or substantively enacted at the balance
sheet date.
Changes in deferred tax assets or liabilities are recognised as a component of
tax expense in the income statement, except where they relate to items that are
charged or credited directly to equity in which case the related deferred tax is
also charged or credited directly to equity.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, together
with other short-term, highly liquid investments that are readily convertible
into known amounts of cash and which are subject to an insignificant risk of
changes in value.
Share-based payments
The Group issues equity-settled payments to certain employees. Equity-settled
share-based payments are measured at fair value (excluding the effect of non
market-based vesting conditions) at the date of grant. The fair value determined
at the grant date of the equity-settled share-based payments is expensed on a
straight-line basis over the vesting period, based on the Group's estimate of
shares that will eventually vest and adjusted for the effect of non market-based
vesting conditions.
Fair value is measured by use of the Black-Scholes model. The expected life used
in the model has been adjusted, based on management's best estimate, for the
effects of non-transferability, exercise restrictions and behavioral conditions.
6 PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information set out in the report does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985.
7 INTERIM FINANCIAL STATEMENTS
Further copies of the interim statements are available from the registered
office of Wyatt Group PLC at Parkway House, Hambrook Lane, Stoke Gifford,
Bristol, BS34 8QB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR TMBFTMMITBIR
Wyatt (LSE:WYT)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Wyatt (LSE:WYT)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024
