REG - Plexus Holdings Plc - Final Results <Origin Href="QuoteRef">PLEX.L</Origin> - Part 2
30/10/2014 06:30
- Part 2: For the preceding part double click ID:nRSc5315Va
for superior and enabling technology is widely
recognised by the industry, and as the 2014 Exxon Report stated, "Advances in
technologies will play a critical role in meeting global energy demand because
they enable the discovery of new resources, access to harsh or remote
locations and the development of challenged reservoirs that previously were
not economic to produce". Plexus is preparing to play an important role in the
supply of such technology in the wellhead market, and to this end we recently
commissioned an extensive in depth report by an international independent
engineering consultancy, OTM Consulting Inc, ('OTM') which assessed POS-GRIP
wellhead designs against competing conventional technology. OTM concluded that
Plexus wellheads using its HG metal seals, offer the "best possible sealing
performance through a metal-to-metal seal that none of the existing designs
can match. Moreover, sealing performance is not effected by
pressure/temperature cycles as there are no movable components". OTM concludes
that after evaluating POS-GRIP sealing technology against existing competing
technologies, "it is the best and safest technology due to its enhanced safety
performance".
Although Plexus in no way underestimates the challenge of competing against
long established multinational wellhead companies who often provide an
equipment 'package' solution, we believe that such analysis and conclusions
regarding the strengths of our technology are a sound base from which to
continue to build market share. Additionally the HP/HT technology led sector
in which Plexus specialises is known to need critical solutions. As a panel of
international oil and gas industry experts including GE, Shell, and Maersk
confirmed to Lloyd's Register Energy in a recent survey, at the very top of
the list of the "high impact technologies going mainstream in the medium term
(around 2020)" was "High-pressure high-temperature drilling, wellheads, and
related technologies" according to 60% of the respondents. Such innovative
technology also appeals to certain important markets where there is a growing
desire and need not to become or remain reliant on imported technology and
equipment. For example it was recently reported that Rosneft and Gazprom may
cooperate on the development of technologies for oil and gas exploration in
the Artic Shelf.
Business Model and Markets
The core organic market that Plexus has historically addressed is the supply
of adjustable rental wellhead equipment and associated running tools for
jack-up exploration drilling in the UKCS. Initially this was only for standard
pressure equipment of 10,000 psi or less, but with the development of POS-GRIP
HP/HT equipment Plexus has secured nearly 100% of the UKCS market as a result
of the superior nature of our technology. This business has since expanded
into the European markets including Norway, Netherlands, and Denmark, and
beyond into global markets, particularly for the supply of HP/HT wellhead
equipment where we have extended our reach to territories that include
Australia, Brunei, Cameroon, Egypt, Malaysia, and Russia. Plexus also provides
service technicians to install and maintain the equipment at various stages
during the drilling of each well.
This advantage of focusing on rental exploration is that it allows customers
to experience and validate the many benefits of POS-GRIP technology on wells
of a temporary nature, as opposed to production wells where the wellhead
equipment is in the field for the life of the well which can be over twenty
years. This model has also mitigated the need for Plexus to develop internal
manufacturing capabilities with attendant fixed overheads as it currently
outsources all of its wellhead manufacturing to a select number of third
parties.
Whereas the jack-up wellhead exploration market can be considered a niche
market estimated to be worth circa US $300m per annum, OTM estimate that in
2014 the global combined worth for exploration and production wellheads is
around US $4.5bn. Clearly therefore the opportunity for a superior and unique
wellhead that has the potential to become a new global standard is
considerable, and OTM has calculated that as a conservative estimate, if
POS-GRIP captures just 1% of the wellhead market for production wet and dry,
and exploration wet equipment, between 2014 and 2018 "it will generate
revenues of circa US $280m in the same period". Such analysis is relevant to
both Plexus from an organic opportunity perspective, and also from a potential
international partner's perspective, as the ability to offer a 'package'
equipment supply solution, of which an innovative and superior wellhead would
comprise an important element, helps to drive sales of other items such as
control equipment.
In terms of revenue generation Plexus owns an expanding fleet of rental
wellheads which are quickly able to return their capital cost, and through a
programme of on-going refurbishment are able to continue to generate rental
revenue for an extended period of time that in some instances has exceeded
fifteen years. The majority of the rental fleet now comprises HP/HT wellheads,
and it is relevant to note a developing trend for the demand for such
wellheads for standard pressure applications, as operators seek to use BAST.
Plexus is working hard to not only continue to grow the jack-up rental
business in both its traditional and new market territories, but also to take
its proven technology into the mainstream volume production wellheads market,
and the important and growing subsea market. The subsea market which includes
wellheads is according to Quest Offshore expected to be highly active and grow
by over 60% in the next five years, from a US $49.7bn market for the previous
five year period 2009 to 2013. It is also relevant to note the industry is
beginning to focus on capital discipline and has increased its search for
lower cost solutions. This trend is likely to grow further should the recently
reduced oil price become the norm.
Plexus is ready to play its part in delivering such important cost savings for
the operator, and crucially we believe that we can do this while also
delivering a superior wellhead solution. Importantly not only can our surface
jack-up wellheads be supplied at a cost that equates to less than the time
savings for the operator, thereby making them cost negative, but looking
forward, and as OTM have analysed, "for subsea wells, the reduced number of
trips (the process of removing the drill string from the wellbore and running
it back in the hole) is estimated to result in savings of 5-6 days for a
10,000 ft. water depth, with an average rig cost of US $1m per day", which
would mean a saving of up to US $6m for the operator. This is because we are
not aware of any other wellhead that can deliver instant casing hanger
lockdown, effective long term metal sealing integrity, and monitoring, whilst
having no need to install lock rings or a lock down sleeve, as well as then
being able to offer the availability of readily implemented multiple side
tracking capability. Features such as these underpin the value of our IP and
give an indication of the growth potential of Plexus as our business model
seeks to extend into these new markets.
As well as significant cost benefits, the superior nature of our technology
can be readily applied to new addressable markets such as floating production
storage and offloading vessels known as 'FPSO's' which are offshore production
facilities that house both processing equipment and storage usually tied to
multiple subsea wells. This market is expected to grow significantly over the
next 10 years, particularly in the Gulf of Mexico. Plexus can deliver a system
whereby the connections from the hanger to the subsea wellhead, the subsea
wellhead to the tie back tool, and the surface hanger to the surface wellhead
all match the integrity of the premium couplings in the system, which again we
consider to be the BAST solution.
Strategy
Plexus has been working for a number of years to validate its POS-GRIP
technology, and this has been successfully achieved in the exploration jack-up
drilling market sector which remains the core organic business activity.
However our technology has also been proven for the volume production wellhead
market, and we are currently working in our JIP towards addressing the growing
subsea market where significant commercial opportunities exist, and which
could be best met through potential partnerships, for example through a
licensing model. We will be actively exploring this corporate strategy at the
appropriate time.
Whilst we continue to expand our core business, and develop new strategic
goals, it is important to ensure that we plan for and implement the necessary
infrastructure that is needed to support this future growth, both in the UK
and abroad. Plexus has extensive sales, engineering, assembly, procurement and
service facilities in Aberdeen, which lies at the heart of the UK's oil and
gas industry, and as a sign of confidence in both Aberdeen and our own future
we doubled the size of our main facility with the acquisition in September of
a 36,000 sq. ft. ex-Baker Hughes facility for £2.4m. This additional space
will enable us to plan for further on-going expansion of our rental
exploration fleet, whilst ensuring that Aberdeen maintains its role as the
centre of our supply hub.
Looking into the future we see a strategy developing to establish a number of
regional hubs that can service local customers without having to return
equipment back to Aberdeen providing cost saving and utilisation efficiency
advantages. The first of these hubs is Plexus Singapore where we have
established a local service base that can reach out to Australia, Brunei, and
Malaysia, and hopefully in due course other markets such as Indonesia and
Vietnam. The base is already being used to service a new customer, Shell
China, and sizeable time and cost savings are expected to result.
On-going development of our IP continues to be an important strategy not only
in terms of protecting existing IP, but also in terms of developing
continuations and new IP that is able to deliver an on-going series of 20 year
patent protections. This IP strategy has most recently been particularly
active for subsea related designs and technology and we are confident that as
these are based around our proprietary POS-GRIP technology that the many new
patent applications that we have submitted will in due course be granted.
Creating IP is of course only part of the story - 'know-how' in terms of how
to apply our IP is critical. Plexus products and business are all developed
around our POS-GRIP friction-grip method of engineering which can be applied
to additional upstream and downstream applications where it is necessary to
join concentric tubular members, or engage remotely operated connectors, all
without the need for threads. Examples include deepwater riser systems, stress
joint connectors, riser tensioning systems, LNG terminal solutions, geothermal
wellheads pipeline connections, and of course subsea wellheads where our JIP
is well advanced and anticipate running a prototype in the field in 2015
calendar year. A further example of such a new product in the process of final
testing, and sponsored by Maersk, is our HP/HT Tie-Back Connector system which
for the first time will allow HP/HT exploration and pre-drilled wells to be
converted to either subsea or platform producing wells. Not only would this
enable production to be brought on-line quicker, but it also saves significant
amounts of capex for the operator that otherwise would be written off when
wells were previously abandoned. We are therefore in the best position to know
how to apply the POS-GRIP 'recipe' to such engineering led solutions, and we
hope to be able to progress these opportunities over the coming years.
In line with our strategy of extending sales territories and product ranges,
we also keep a close eye on commercial opportunities that arise from new or
growing energy sources. These can relate to the actual energy source itself,
or physical locations. For example we recently undertook a sales visit to
Japan to assess what opportunities may exist for our technology. Discussions
extended beyond our core business technology, and included early stage future
planned extraction of methane hydrates where safety and sealing are paramount,
(methane is the chief ingredient of natural gas and can be found all over the
world beneath the seafloor or underneath Artic permafrost), as well as mud
volcanos for geothermal applications where high temperature wellheads would be
required. Further opportunities have also been identified in the Artic
offshore Russia and Norway where the ability to disconnect and reconnect
wellhead equipment without the use of threaded connectors would have clear
cost and safety advantages, and also offshore Western Greece where new
offshore licencing rounds are being prepared as a result of nearby Italian and
Albanian discoveries which share similar geology.
In summary our key strategic goal over time is for POS-GRIP wellheads, whether
for surface or subsea exploration and production applications, to become a new
industry standard which is recognised as a superior method of engineering that
delivers a quality of metal seal that cannot be matched by conventional
wellhead technology. The science based driver for our ability to achieve this
goal is simply that unlike conventional wellhead designs available from all
other wellhead suppliers, Plexus is uniquely able to deliver and maintain
enough interface stress between the perimeter of a metal seal and the wellhead
bore, within Hertzian Contact Stress limits, throughout the life of the well.
In line with this strategy, we are beginning to actively explore how best to
exploit this simple message with potential partners worldwide.
Key Performance Indicators
The Directors monitor the performance of the Group by reference to certain
financial and non-financial key performance indicators. The financial
indicators include revenue, EBITDA, profit and earnings per share.
Non-financial indicators include Health and Safety statistics, equipment
utilisation rate, geographical diversity of customer revenues, effectiveness
of a range of research and development initiatives for example in relation to
new patent activity, and employee headcount and turnover rates.
Principal Risks and Risk Management
There are a number of potential risks and uncertainties that could have an
impact on the Group's performance which include the following.
(a) Political and environmental risks
We participate in a global market where the oil and gas reserves and their
extraction can be severely impacted by changes in the political, operational,
and environmental landscape. The introduction of sanctions is one example of
such a risk. As a supplier to the industry we in turn can be adversely
affected by such events which can disrupt the markets, and affect our ability
to execute work for customers and/or collect payment for services performed.
To help address such risks, the Group has continued to broaden its geographic
footprint and customer base.
(b) Technology
The Group is still at a relatively early stage in the commercialisation,
marketing and application of its POS-GRIP friction-grip technology beyond
jack-up rental exploration wellhead equipment, particularly with regard to new
product developments. Current and future contracts may be adversely affected
by technology related factors outside the Group's control. These may include
unforeseen equipment design issues, test delays during a contract and final
testing and delayed acceptances of deliveries, which could lead to possible
abortive expenditure, reputational risk and potential customer claims or
onerous contractual terms. Such risks may materially impact on the Group. To
mitigate this risk the Group continues to invest in developing and proving the
technology and has a policy of on-going training of our own personnel and
where appropriate our customers.
(c) Competitive risk
The Group operates in highly competitive markets and often competes directly
with large multi-national corporations who have greater resources and are more
established. Product innovation or technical advances by competitors could
adversely affect the Group and lead to a slower take up of the Group's
proprietary technology.To mitigate this risk Plexus maintains an extensive
suite of patents and trademarks, and actively continues to develop and improve
its IP to ensure that it continues to be able to offer unique superior
wellhead design solutions.
(d) Operational
Shortage of experienced personnel in the oil and gas industry is widely
recognised and could deprive Plexus of key personnel necessary for operational
activities and research and development initiatives.To mitigate this risk
Plexus has developed effective recruitment and training procedures, which
combined with the appeal of working in a company with unique technology and
engineering solutions has enabled us to continue to grow our staff numbers,
and achieve to date a low rate of turnover of personnel.
(e) Liquidity and finance requirements
In an economic climate that remains volatile and unpredictable it has become
increasingly possible for both existing and potential sources of finance to be
closed to businesses for a variety of reasons that have not been an issue in
the past. Some of these may even relate to the lender itself in terms of its
own capital ratios and lending capacity. Although this is a potential risk the
Group took appropriate steps during the year to mitigate this risk by
successfully renewing and extending its bank facilities with Bank of Scotland.
The Group is required to meet certain financial criteria agreed as covenants
in connection with its bank loans and monthly management accounts are prepared
and reviewed against the covenant requirements to ensure that the Group's
obligations can be met.
(f) Credit
The main credit risk is attributable to trade receivables. As the majority of
the Group's customers are large international oil companies the risk of
non-payment is much reduced, and therefore is more likely to be related to
client satisfaction and/or trade sanctions. Customer payments can involve
extended period of times especially from countries where exchange control
regulations can delay the transfer of funds outside those countries. The Group
has credit risk management policies in place and exposure to credit risk is
monitored continuously.
Risk assessment
The Board has established an on-going process for identifying, evaluating and
managing the significant risks faced by the Group. One of the Board's control
documents is a detailed "Risks assessment & management document" which
categorises risks in terms of - business (including IT), compliance, finance,
cash, debtors, fixed assets, other debtors/prepayments, creditors, legal, and
personnel. These risks are assessed on a regular basis and could be associated
with a variety of internal and external sources including regulatory
requirements, disruption to information systems, control breakdowns and
social, ethical, environmental and health and safety issues.
Ben van Bilderbeek
Chief Executive
28 October 2014
Consolidated Statement of Comprehensive Income
for the year ended 30 June 2014
2014 2013
Notes £'000 £'000
Revenue 1 27,024 25,566
Cost of sales (7,817) (7,402)
Gross profit 19,207 18,164
Administrative expenses (13,928) (13,772)
Operating profit 5,279 4,392
Finance income 5 7
Finance costs (124) (130)
Share of profit of associate 215 -
Profit before taxation 5,375 4,269
Income tax expense 3 (329) (1,213)
Profit after taxation 5,046 3,056
Other comprehensive income - -
Total comprehensiveincome for the year attributable to the owners of the parent 5,046 3,056
Earnings per share 5
Basic 6.01p 3.69p
Diluted 5.75p 3.51p
All income arises from continuing operations.
Earnings per share
5
Basic
6.01p
3.69p
Diluted
5.75p
3.51p
All income arises from continuing operations.
Consolidated Statement of Financial Position
at 30 June 2014
2014 2013
Notes £'000 £'000
Assets
Goodwill 760 760
Intangible assets 6 10,437 8,691
Investment in associate 7 941 -
Property, plant and equipment 8 13,284 13,168
Deferred tax asset 751 545
Total non-current assets 26,173 23,164
Inventories 5,256 6,032
Trade and other receivables 6,463 4,922
Cash and cash equivalents 6,353 2,609
Total current assets 18,072 13,563
Total Assets 44,245 36,727
Equity and Liabilities
Called up share capital 9 849 828
Share premium account 20,138 17,288
Share based payments reserve 2,476 2,741
Retained earnings 11,117 6,335
Total equity attributable to equity holders of the parent 34,580 27,192
Liabilities
Bank loans 4,000 4,000
Total non-current liabilities 4,000 4,000
Trade and other payables 5,482 5,226
Current income tax liabilities 183 309
Total current liabilities 5,665 5,535
Total liabilities 9,665 9,535
Total Equity and Liabilities 44,245 36,727
Total current liabilities
5,665
5,535
Total liabilities
9,665
9,535
Total Equity and Liabilities
44,245
36,727
Consolidated Statement of Changes in Equity
for the year ended 30 June 2014
Called Up Share Capital £'000 Share Premium Account £'000 Share Based Payments Reserve £'000 Retained Earnings £'000 Total £'000
Balance as at 30 June 2012 827 17,280 1,726 4,057 23,890
Total comprehensive income for the year - - - 3,056 3,056
Share based payments reserve charge - - 141 - 141
Issue of ordinary shares 1 8 - - 9
Net deferred tax movement on share options - - 874 - 874
Dividends - - - (778) (778)
Balance as at 30 June 2013 828 17,288 2,741 6,335 27,192
Total comprehensive income for the year - - - 5,046 5,046
Share based payments reserve charge - - 26 - 26
Transfer of share based payments reservecharge on exercise of options - - (599) 599 -
Issue of ordinary shares (net of issue costs) 21 2,850 - - 2,871
Net deferred tax movement on share options - - 308 - 308
Dividends - - - (863) (863)
Balance as at 30 June 2014 849 20,138 2,476 11,117 34,580
Issue of ordinary shares (net of issue costs)
21
2,850
-
-
2,871
Net deferred tax movement on share options
-
-
308
-
308
Dividends
-
-
-
(863)
(863)
Balance as at 30 June 2014
849
20,138
2,476
11,117
34,580
Consolidated Statement of Cash Flows
for the year ended 30 June 2014
2014 2013
£'000 £'000
Cash flows from operating activities
Profit before taxation 5,375 4,269
Adjustments for:
Depreciation, amortisation and impairment charges 3,405 2,956
Loss on disposal of property, plant and equipment 95 108
Loss on expiry of option - 60
Charge for share based payments 26 141
Investment income (5) (7)
Interest expense 124 130
Share of result in associate (215) -
Changes in working capital:
Decrease in inventories 776 15
(Increase)/decrease in trade and other receivables (1,541) 1,138
Increase/(decrease) in trade and other payables 256 (106)
Cash generated from operating activities 8,296 8,704
Income taxes paid (353) (926)
Net cash generated from operating activities 7,943 7,778
Cash flows from investing activities
Acquisition of associate (726) -
Purchase of intangible assets (2,403) (1,491)
Purchase of property, plant and equipment (3,016) (6,650)
Proceeds of sale of property, plant and equipment 57 125
Net cash used in investing activities (6,088) (8,016)
Cash flows from financing activities
Net proceeds from issue of new ordinary shares 2,330 -
Proceeds from share options exercised 541 9
Interest paid (124) (130)
Interest received 5 7
Equity dividends paid (863) (778)
Net cash generated from/(used in) financing activities 1,889 (892)
Net increase/(decrease) in cash and cash equivalents 3,744 (1,130)
Cash and cash equivalents at 1 July 2013 2,609 3,739
Cash and cash equivalents at 30 June 2014 6,353 2,609
(863)
(778)
Net cash generated from/(used in) financing activities
1,889
(892)
Net increase/(decrease) in cash and cash equivalents
3,744
(1,130)
Cash and cash equivalents at 1 July 2013
2,609
3,739
Cash and cash equivalents at 30 June 2014
6,353
2,609
Notes to the Consolidated Financial Statement
1. Revenue
2014 2013
£'000 £'000
By geography
UK 9,892 9,663
Europe 6,905 7,157
Rest of World 10,227 8,746
27,024 25,566
10,227
8,746
27,024
25,566
The revenue information above is based on the location of the customer.
2. Segment reporting
The Group derives revenue from the sale of its POS-GRIP technology and
associated products, the rental of wellheads utilising the POS-GRIP technology
and service income principally derived in assisting with the commissioning and
on-going service requirements of our equipment. These income streams are all
derived from the utilisation of the technology which the Group believes is its
only segment.
Per IFRS 8, the operating segment is based on internal reports about
components of the group, which are regularly reviewed and used by the board of
directors being the Chief Operating Decision Maker ("CODM").
All of the Group's non-current assets are held in the UK.
The following customers each account for more than 10% of the Group's
revenue:
2014 2013
£'000 £'000
Customer 1 5,110 1,183
Customer 2 4,472 437
Customer 3 3,576 1,121
437
Customer 3
3,576
1,121
3. Income tax expense
(i) The taxation charge for the year comprises: 2014 2013
£'000 £'000
UK Corporation tax:
Current tax on income for the year 483 701
Adjustment in respect of prior years (350) (391)
133 310
Foreign tax:
Current tax on income for the year 81 91
Adjustment in respect of prior years 13 10
94 101
Total current tax 227 411
Deferred tax:
Origination and reversal of timing differences including share options (42) 247
Adjustment in respect of prior years 144 555
Total deferred tax 102 802
Total tax charge 329 1,213
The effective rate of tax is 6% (2013: 28%)
(ii) Factors affecting the tax charge for the year
Profit on ordinary activities before tax 5,375 4,269
Tax on profit at standard rate of UK corporation tax of 22.5% (2013: 23.75%) 1,209 1,014
Effects of:
Expenses not deductible for tax purposes 217 263
Income from associate not subject to tax (48) -
Effect of R&D tax credits (279) (277)
Effect of change in tax rate (128) (14)
Tax adjustments on share based payments (449) 53
Adjustments in respect of prior year (193) 174
Total tax charge 329 1,213
(iii) Movement in deferred tax asset balance
Deferred tax asset at beginning of year 545 473
Charge to statement of comprehensive income (102) (802)
Deferred tax movement on share options 308 874
Deferred tax asset at end of year 751 545
(iv) Deferred tax balance
The deferred tax asset balance is made up of the following items:
Difference between depreciation and capital allowances (1,232) (1,107)
Share based payments 1,956 1,620
Tax losses 27 32
Deferred tax asset at end of year 751 545
(iv) Deferred tax balance
The deferred tax asset balance is made up of the following items:
Difference between depreciation and capital allowances
(1,232)
(1,107)
Share based payments
1,956
1,620
Tax losses
27
32
Deferred tax asset at end of year
751
545
4. Dividends
2014 2013
£'000 £'000
Ordinary Shares
Interim paid for the period to31 December 2013 of 0.48p (2013: 0.44p) per share 407 364
Ordinary Shares
Final dividend for the year ended30 June 2014 of 0.62p (2013: 0.55p) per share 526 456
The proposed final dividend has not been accrued at the statement of financial
position date in accordance with IFRS.
5. Earnings per share
2014 2013
£'000 £'000
Profit attributable to shareholders 5,046 3,056
Number Number
Weighted average number of shares in issue 83,991,918 82,747,275
Dilution effects of share schemes 3,728,098 4,275,461
Diluted weighted average number of shares in issue 87,720,016 87,022,736
Basic earnings per share 6.01p 3.69p
Diluted earnings per share 5.75p 3.51p
Basic earnings per share is calculated on the results attributable to ordinary shares divided by the weighted average number of shares in issue during the year.
Diluted earnings per share calculations include additional shares to reflect the dilutive effect of employee share schemes and share option schemes.
6. Intangible fixed assets
IntellectualProperty£'000 Patent andOtherDevelopment£'000 ComputerSoftware£'000 Total£'000
Cost
As at 1 July 2012 6,440 3,895 157 10,492
Additions - 1,458 33 1,491
As at 30 June 2013 6,440 5,353 190 11,983
Additions - 2,367 36 2,403
As at 30 June 2014 6,440 7,720 226 14,386
Amortisation
As at 1 July 2012 2,032 562 136 2,730
Charge for the year 330 219 13 562
As at 30 June 2013 2,362 781 149 3,292
Charge for the year 330 308 19 657
As at 30 June 2014 2,692 1,089 168 3,949
Net Book ValueAs at 30 June 2014 3,748 6,631 58 10,437
As at 30 June 2013 4,078 4,572 41 8,691
As at 30 June 2012 4,408 3,333 21 7,762
Patent and other development costs are internally generated.
7. Investment in associate
The summary financial information of the Group's associate, extracted on a
100% basis from the accounts for the 11 months ended 30 June are as follows:
£'000
Assets 8,464
Liabilities 5,037
Revenue 8,158
Profit 862
Value of associate investment
Investment in associate during the year 726
Share of profit in the year 215
Investment in associate at 30 June 2014 941
8. Property, plant and equipment
Buildings £'000 TenantImprovements£'000 Equipment £'000 Assetsunder Construction£'000 MotorVehicles£'000 Total£'000
Cost
As at 1 July 2012 685 213 17,094 851 47 18,890
Additions 287 140 736 5,487 - 6,650
Transfers - - 5,679 (5,679) - -
Disposals - - (915) - (5) (920)
As at 30 June 2013 972 353 22,594 659 42 24,620
Additions 2 77 430 2,505 2 3,016
Transfers - - 2,904 (2,904) - -
Disposals - - (535) - - (535)
As at 30 June 2014 974 430 25,393 260 44 27,101
Depreciation
As at 1 July 2012 259 39 9,434 - 13 9,745
Charge for the year 66 37 2,279 - 12 2,394
On disposals - - (685) - (2) (687)
As at 30 June 2013 325 76 11,028 - 23 11,452
Charge for the year 80 50 2,612 - 6 2,748
On disposals - - (383) - - (383)
As at 30 June 2014 405 126 13,257 - 29 13,817
Net book valueAs at 30 June 2014 569 304 12,136 260 15 13,284
As at 30 June 2013 647 277 11,566 659 19 13,168
As at 30 June 2012 426 174 7,660 851 34 9,145
9. Share Capital
2014 2013
£'000 £'000
Authorised:
Equity: 110,000,000 (2013: 110,000,000) Ordinary shares of 1p each 1,100 1,100
Allotted, called up and fully paid:
Equity: 84,892,673 (2013: 82,768,672) Ordinary shares of 1p each 849 828
Share issue during the year:
Numberof shares Sharecapital£'000 Sharepremium£'000 Total£'000
At 30 June 2013 82,768,672 828 17,288 18,116
On 29 July 2013 36,377 - 16 16
On 5 December 2013 2,087,624 21 3,004 3,025
Less share issue costs - - (170) (170)
At 30 June 2014 84,892,673 849 20,138 20,987
During the period the Group issued new shares as a result of the following
transactions:
Aggregate Total
Number of Price per nominal aggregate
shares share value value
£ £
29 July 2013
- Share options 31,313 41.00p 313 12,838
- Share options 5,064 60.00p 51 3,038
36,377 364 15,876
5 December 2013
- Issue of new shares 1,020,408 245.00p 10,204 2,500,000
- Share options 125,445 38.50p 1,254 48,296
- Share options 439,871 41.00p 4,399 180,347
- Share options 38,630 54.75p 386 21,150
- Share options 310,152 59.00p 3,102 182,990
- Share options 153,118 60.00p 1,531 91,871
2,087,624 20,876 3,024,654
Total 2,124,001 21,240 3,040,530
Split by type
Issue of new shares 1,020,408 10,204 2,500,000
Share options 1,103,593 11,036 540,530
Total 2,124,001 21,240 3,040,530
The excess net proceeds have been credited to the share premium account.
10. Reconciliation of net cash flow to movement in net cash/(debt)
2014 2013
£'000 £'000
Increase/(decrease) in cash in the year 3,744 (1,130)
Movement in net cash/(debt) in year 3,744 (1,130)
Net debt at start of year (1,391) (261)
Net cash/(debt) at end of year 2,353 (1,391)
11. Analysis of net cash/(debt)
Atbeginningof year£'000 Cash flow£'000 Atendof year£'000
Cash in hand and at bank 2,609 3,744 6,353
Bank loans (4,000) - (4,000)
Total (1,391) 3,744 2,353
12. Post balance sheet events
Subsequent to the year end, the Group acquired an additional facility adjacent
to its existing operational headquarters in Dyce, Aberdeen. The consideration
paid for the facility was £2,400k.
The financial information above does not constitute the company's statutory
accounts for the year ended 30 June 2014 but is derived from those
statements.
The statutory financial statements and this preliminary statement for the year
ended 30 June 2014 were approved by the Board on 28 October 2014. On the same
date the company's auditors, Crowe Clark Whitehill LLP issued an unqualified
report on those financial statements. The audit report did not include
reference to any matters to which the auditor drew attention by way of
emphasis without qualifying the report or contain a statement under section
498(2) or (3) of the Companies Act 2006. The financial information for the
year ended 30 June 2013 is derived from the statutory accounts for that year
which have been delivered to the Registrar of Companies. The auditors reported
on those accounts; their report was unqualified and did not draw attention to
any matters be way of emphasis and not contain a statement under s498(2) or
(3) of the Companies Act 2006 or equivalent preceding legislation. The
Company's financial statements have been prepared in accordance with
International Financial Reporting Standards, as adopted by the EU. A copy of
the statutory accounts will be delivered to the Registrar of Companies in due
course.
The Annual Report will be circulated to all shareholders and thereafter,
copies will be available from the registered office of the company, Thames
House, Portsmouth Road, Esher, Surrey, KT10 9AD.
This information is provided by RNS
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