Change in presentational currency

RNS Number : 2038W
4imprint Group PLC
05 November 2014
 



4imprint Group plc                                                                                          5 November 2014

 

Change in presentational currency

Comparatives presented in USD

 

4imprint Group plc (the "Group"), the leading international direct marketer of promotional products, announced on 24 October 2014 that it is changing the currency in which it presents its consolidated financial statements from Sterling to US dollars. A substantial portion of the Group's revenue and earnings are now denominated in US dollars and the Board has decided that a US dollar presentation will give a more meaningful view of the Group's financial performance and position.

 

In future, dividends will be determined in US dollars and paid in Sterling at the exchange rate at the time the dividend is determined.

 

In the unaudited appendix attached to this announcement the Group has presented condensed consolidated US dollar financial information. This will form the basis of the comparative US dollar financial statements to be included in the full year results for the year ending 27 December 2014 and the half year results for the six month period ending 27 June 2015.

 

The condensed consolidated financial information has been restated from Sterling into US dollars using the procedures as outlined below and in accordance with the requirements set out in IAS 21: "The Effects of Changes in Foreign Exchange Rates" with respect to translation to the presentational currency:

 

·      Items of income and expenditure, other than single material identifiable transactions, denominated in non US dollar currencies were translated into US dollars at the average exchange rate of the reporting period. Single material identifiable transactions, e.g. the sale of the SPS business, have been translated at the exchange rate at the time of the transaction;

 

·      assets and liabilities denominated in non US dollar currencies were translated into US dollars at the   closing rate prevailing at the balance sheet dates;

 

·      share capital, share premium and the capital redemption reserve have been translated at historical exchange rates; and  

 

·     all resulting exchange differences have been recognised in other comprehensive income and in the currency translation reserve in accordance with the Group's existing accounting policy.

 

 

The relevant exchange rates used were as follows:

                 

 


Six months ended

28 June

2014

Year ended

28 Dec

2013

£/US$ - average

1.6693

1.5641

£/US$ - period end

1.7016

1.6494

 

 

 

For further information, please contact:

 

4imprint Group plc

Tel. + 44 (0) 20 7299 7201

 

MHP Communications

Tel. + 44 (0) 20 3128 8100

John Poulter

Executive Chairman

 

Gillian Davies

Group Finance Director

Reg Hoare

 

 

Katie Hunt

 

 

 

 

Condensed consolidated income statement (unaudited)

 



Half year 2014

$'000

Full year

2013

$'000

Continuing operations




Revenue


193,058

332,936

Operating expenses


(185,262)

(317,080)





Operating profit before exceptional items


8,816

16,253

Exceptional items


(1,020)

(397)

Operating profit


7,796

15,856





Finance income


83

88

Finance costs


-

(27)

Net pension finance charge


(591)

(1,445)

Net finance cost


(508)

(1,384)

Profit before tax


7,288

14,472

Taxation


(2,113)

(3,857)

Profit for the period from continuing operations


5,175

10,615

Discontinued operations




Loss from discontinued operations


(1,279)

(4,825)

Profit for the period


3,896

5,790

 

 

Earnings per share




Basic




From continuing operations


19.28c

40.11c

From continuing and discontinued operations


14.51c

21.88c

Diluted




From continuing operations


18.40c

38.13c

From continuing and discontinued operations


13.85c

20.80c

Underlying




From continuing operations


26.69c

55.55c

 

 

 

  



Condensed consolidated statement of comprehensive income (unaudited)

 



Half year 2014

$'000

Full year

2013

$'000

Profit for the period


3,896

5,790

Other comprehensive (expense)/income




Items that may be reclassified subsequently to the income statement:




Exchange differences on translation of foreign subsidiaries


190

377

Exchange differences recycled to income statement on disposal of business


1,347

-

Items that will not be reclassified subsequently to the income statement:




Remeasurement (losses)/gains on post employment obligations


(5,176)

7,173

Tax relating to components of other comprehensive income


1,113

(3,502)

Effect of change in UK tax rate


(52)

(755)

Other comprehensive (expense)/income net of tax


(2,578)

3,293

Total comprehensive income for the period


1,318

9,083

 

 

 

 






Half year 2014

$'000

Full year

2013

$'000

Total comprehensive income attributable to equity

Shareholders arising from

- Continuing operations

- Discontinued operations


 

 

1,250

68

 

 

13,908

(4,825)



1,318

9,083

 



Condensed consolidated balance sheet (unaudited)

 




At 28 June 2014

$'000

At 28 Dec

2013

$'000

Non current assets





Property, plant and equipment



9,046

8,803

Intangible assets



1,402

1,349

Deferred tax assets



7,257

6,324




17,705

16,476





Assets held for sale



-

13,824

Inventories



3,373

3,686

Trade and other receivables



31,660

30,105

Other financial assets - bank deposits



14,634

8,165

Cash and cash equivalents



29,832

17,825




79,499

73,605





Trade and other payables



(38,677)

(29,684)

Current tax



(1,656)

(247)

Liabilities held for sale



-

(4,364)

 



(40,333)

(34,295)

Net current assets



39,166

39,310

Non current liabilities





Retirement benefit obligations



(31,879)

(27,398)

Deferred tax liability



(381)

(477)

Provisions for other liabilities and charges



(248)

(242)




(32,508)

(28,117)

Net assets



24,363

27,669






Shareholders' equity





Share capital



18,777

17,988

Share premium reserve



68,451

68,451

Capital redemption reserve



369

369

 Currency translation reserve



6,997

5,460

Retained earnings



(70,231)

(64,599)



24,363

27,669

 

 

 



 

Condensed consolidated cash flow statement (unaudited)

 



Half year 2014

$'000

Full year

2013

$'000

Cash flows from operating activities




Cash generated from operations


14,163

17,913

Net tax paid


(177)

(2,714)

Finance income


72

108

Finance costs


-

(22)

Net cash generated from operating activities


14,058

15,285

Cash flows from investing activities




Purchases of property, plant and equipment


(843)

(1,542)

Purchases of intangible assets


(235)

(486)

Net proceeds from sale of business


9,721

1,484

Net cash generated from/(used in) investing activities


8,643

(544)

Cash flows from financing activities




Repayment of borrowings


-

(10,064)

Capital element of finance lease payments


-

(236)

Amounts placed on deposit


(6,093)

(3,050)

Proceeds from issue of ordinary shares


789

322

Purchase of own shares


(789)

(200)

Dividends paid to Shareholders


(5,118)

(6,558)

Net cash used in financing activities


(11,211)

(19,786)

Net movement in cash and cash equivalents


11,490

(5,045)

Cash and cash equivalents at beginning of the period


17,825

22,780

Exchange gains on cash and cash equivalents


517

90

Cash and cash equivalents at end of the period


29,832

17,825

 

Analysis of cash and cash equivalents




Cash at bank and in hand


24,047

10,815

Short term deposits


5,785

7,010

 


29,832

17,825

 

 

  

 

 

Segmental information

 

 

Revenue - continuing operations




Half year

2014

$'000

Full year

2013

$'000

North America

185,094

320,035

UK and Ireland

7,964

12,901

Total

193,058

332,936

 

 

 

 

Profit - continuing operations

     

         Underlying*

Total


Half year

2014

$'000

Full year

2013

$'000

Half year

2014

$'000

Full year

2013

$'000

4imprint Direct Marketing

11,533

22,839

11,533

22,839

Head office

(1,844)

(3,345)

(1,844)

(3,345)

Underlying operating profit

9,689

19,494

9,689

19,494

Exceptional items - Head office



(1,020)

(397)

Share option related charges



(526)

(2,493)

Defined benefit pension scheme administrative expenses



(347)

(748)

Operating profit

9,689

19,494

7,796

15,856

Net finance income

83

61

83

61

Defined benefit pension finance charge



(591)

(1,445)

Profit before tax

9,772

19,555

7,288

14,472

* Underlying is before share option related charges, defined benefit pension charges and exceptional items.

 

 

  

 

 

Earnings per share

 

Basic, diluted and underlying

The basic, diluted and underlying earnings per share are calculated based on the following data:

 


Half year 2014

$'000

Full year

2013

$'000

Profit after tax - continuing operations

5,175

10,615

Loss after tax - discontinued operations

(1,279)

(4,825)

Profit for the period

3,896

5,790

 

Underlying profit after tax - continuing operations

7,165

14,700

Includes cumulative exchange losses of $1,347,000 recycled to the income statement on disposal.

 

 


Half year 2014

Number

'000

Full year

2013

Number

'000

Basic weighted average number of shares

26,847

26,463

Dilutive potential ordinary shares - employee share options

1,276

1,372

Diluted weighted average number of shares

28,123

27,835

 

 

 

 

 


Half year 2014

cents

Full year

2013

cents

Basic earnings per share from continuing operations

19.28

40.11

Basic loss per share from discontinued operations

(4.77)

(18.23)

Basic earnings per share

14.51

21.88




Diluted earnings per share from continuing operations

18.40

38.13

Diluted loss per share from discontinued operations

(4.55)

(17.33)

Diluted earnings per share

13.85

20.80




Underlying basic earnings per share from continuing operations

26.69

55.55

Underlying diluted basic earnings per share from continuing operations

25.48

52.81

 

 

 

  

Cash generated from operations

 


Half year 2014

$'000

Full year

2013

$'000

Operating profit  - continuing operations

7,796

15,856

           - discontinued operations

(98)

1,439

Adjustments for:



Depreciation charge

678

2,133

Amortisation of intangibles

280

626

Exceptional non cash items

706

119

Decrease in exceptional accrual/provisions

(40)

(25)

Share option charges - continuing

494

1,226

    - discontinued

-

17

Defined benefit pension administration charge

347

748

Contributions to defined benefit pension scheme - normal

                                                                              - flexible early retirement offer

(2,853)

(422)

(4,966)

-

 

Changes in working capital:



Increase in inventories

(130)

(1,268)

Decrease/(increase) in trade and other receivables

142

(5,362)

Increase in trade and other payables

7,263

7,370

Cash generated from operations

14,163

17,913

 

 

 


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