Interim Results for Six Months Ended 30 June 2018

RNS Number : 0657W

RTC Group PLC

30 July 2018

 

30 July 2018

RTC Group Plc

("RTC", "the Company" or "the Group")

Interim Results for the Six Months Ended 30 June 2018

RTC Group Plc (AIM: RTC.L), the engineering and technical recruitment company, is pleased to announce its unaudited results for the six months ended 30 June 2018.

Highlights:

·        Group revenue from continuing operations increased by 17% to £41.1m (2017: £35.1m)

·        Profit before tax increased by 31% to £0.77m: (2017: £0.59m)

·        Basic earnings per share increased by 22% to 4.38p: (2017: 3.58p)

In line with the Group's progressive dividend policy, the Directors propose an interim dividend of 1.3p per share (2017: 1.2p). The interim dividend will be paid on 30 November 2018 to shareholders on the register on 9 November 2018.

Commenting on the results, Bill Douie, Chairman, said:

"The optimism that we expressed earlier in the year has been justified by a highly satisfactory set of results.  We remain confident of continued strong trading, in line with expectations, during the second half, and of delivering our ambitious growth plans across all our Group businesses "

The interim report is available on the Company's website www.rtcgroupplc.co.uk.

ENDS

 

Enquiries:

RTC Group Plc	Tel: [phone]
Bill Douie, Chairman
Andy Pendlebury, Chief Executive
SPARK Advisory Partners Limited (Nominated Adviser) Matt Davis / Mark Brady www.Sparkadvisorypartners.com	Tel: [phone]
Whitman Howard Limited (Broker) Nick Lovering / Francis North www.Whitman-howard.com	Tel: [phone]

About RTC

RTC has three principal trading subsidiaries engaged in recruitment services:

·      ATA supplies white and blue-collar engineering and technical staff to a broad range of clients;

·      Ganymede supplies blue collar contingent labour into safety critical markets; and

·      GSS provides recruitment services for international deployment.

www.rtcgroupplc.co.uk

 

Chairman's statement

Six months ended 30 June 2018

Our optimism as expressed in my statement in our report and accounts earlier this year has been justified and trading in the first half of 2018 has been most satisfactory. 

Ganymede Rail continues to perform well despite lower than expected volumes on its Network Rail contract, and although we had a minor exposure to Carillion, we have not suffered any net loss arising from their failure.  In the final weeks of the period, volumes arising from the Network Rail contract returned to normal levels. 

Ganymede Energy's significant contract with Scottish and Southern Electric Plc to source, train and provide dual fuel installers for its Smart-Meter roll-out programme experienced delays in growth due to Government approval of equipment standards and will see growth return next year.

ATA Recruitment has had a good first half and is growing its contract business ahead of expectations.

Global Staffing Solutions continues to increase its presence in Afghanistan and is enjoying promising new client opportunities both there and in other Middle East regions.

Long term incentives.  For some years prior to 2018, very few share options were granted to senior and top management.  The Remuneration Committee is keenly aware of the need to ensure that key staff are suitably incentivised both in the short and long-term.  The responsibility to secure, motivate and retain top quality talent at Group Board level falls to the Group Chairman, assisted by the Remuneration Committee on rewards matters.  The short term is accomplished by heavily weighted Profit Related Pay and the long-term is secured by the long-term incentives.  Earlier this year an award of LTIP options was made to Group Executive Directors to restore an appropriate level of options to vest only on achievement of three-year performance objectives.  That process is now complete.

We remain confident of continuing our performance in the second half of 2018 in line with expectations and are looking forward to delivering our ambitious growth plans across all our Group businesses.

W J C Douie                                                                                                                                                       30 July 2018

Chairman

 

Finance Director's statement

Six months ended 30 June 2018

 

Revenue and gross margin

In the period ended 30 June 2018, Group revenue increased by 17% to £41.1m (2017: £35.1m). Profit before tax increased by 31% to £0.77m (2017: £0.59m).

ATA

ATA's strategy of increasing its contract-based business has proved successful with growth in contract margin of 30% on the same period last year. This coupled with solid growth in permanent and temporary recruitment activities and increased operating efficiencies has improved gross profit conversion to 30% from 21% in 2017.

GSS

GSS made an outstanding start to 2018 delivering a £0.5m contribution to Group up 161% on the same period last year. This reflects a steady increase in the number of workers supplied to KBR, its long standing international partner and its contract with another major US outsourcing organisation providing staff to support international operations on large projects which started in July 2017.  Conversion of gross profit to profit from operations has increased significantly from 40% H1 2017 to 60% H1 2018.

Ganymede

Ganymede's contribution reflects lower than expected demand from Network Rail (demand has now picked up) and temporary delays caused by the approval of SMET2 smart-meter technology. Also, the new accounting standard IFRS 15 has altered the treatment of certain costs relating to long-term contracts which impacted Ganymede's first half result (refer note 1 (d)).

Central Services

Within Central Services revenue from the Derby site continues to grow in line with expectations.

Taxation

The total tax charge for the period is estimated at £148,000 (2017: £93,000). This is higher than would be expected if the standard tax rate was applied to the profits for the period, as explained in note 3.

Earnings per share

The basic earnings per share figure is 4.38p (2017: 3.85p).  The diluted earnings per share 4.10p (2017: 3.39p).

Statement of financial position

The Group statement of financial position has further strengthened compared to the same point last year with net working capital increasing to £2.7m (2017: £1.8m). This increase primarily reflects increased turnover with clients in ATA on extended credit terms. The ratio of current assets to current liabilities was maintained at 1.2 (2017: 1.2) and the gearing ratio increased to 1.3 times (2017: 1.0 times).  Interest cover was 13.6 times (2017: 16.9 times). The increase in absolute interest cost reflects growth in contract business with clients on extended credit terms.

 

Finance Director's statement

Six months ended 30 June 2018

Cash flow

The cash flow for the six-month period reflects temporary payment delays due to an internal reorganisation at a major customer in Ganymede that have since been resolved and increased business with a major customer in ATA on extended credit terms.

Financing

The Group's current bank facilities include an overdraft of £50,000 and a confidential invoice discounting facility of up to £9.0m with HSBC which has been renewed for a further two-year period at a reduced discount margin of 1.5% above base (previously 1.65% above base).  An increase in facility up to £11m has also been approved by HSBC but not yet invoked as the Group is operating within its current facility cap. The Board closely monitors the level of facility utilisation and availability to ensure that there is sufficient headroom to manage current operations and support the growth of the business.  The Group continues to be focussed on cash generation and building a robust statement of financial position to support the growth of the business.

Own shares held

The cost of the Group's own shares purchased through the Employee Benefit Trust is shown as a deduction from equity. 248,554 options were exercised on 1 June 2018 and own shares held in the EBT were used to satisfy this demand. The balance of £298,919 on the own shares held reserve within equity reflects 427,027 shares remaining in the EBT that will be used to satisfy future exercises.

S L Dye                                                                                                                                                     30 July 2018

Group Finance Director                                                                                               

 

Consolidated statement of comprehensive income

Six months ended 30 June 2018

 

		Six-month period ended 30 June 2018	Six-month period ended 30 June 2017	Year ended 31 December 2017 Audited
		Unaudited	Unaudited	(Restated)
	Notes	£'000	£'000	£'000
Revenue	2	41,125	35,127	71,687
Cost of sales	2	(34,460)	(29,126)	(59,710)
Gross profit	2	6,665	6,001	11,977
Administrative expenses		(5,834)	(5,374)	(10,730)
Profit from operations		831	627	1,247
Financing expense		(61)	(37)	(81)
Profit before tax		770	590	1,166
Tax expense	3	(148)	(93)	(183)
Net profit and total comprehensive income for the period		622	497	983
Earnings per ordinary share	5
Basic		4.38p	3.58p	7.07p
Diluted		4.10p	3.39p	6.61p

 

Consolidated statement of changes in equity

Six months ended 30 June 2018

Six months ended 30 June 2018:

	Share capital	Share premium	Own shares held	Capital redemption reserve	Share based payment reserve	Profit and loss	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 December 2017 (as previously stated)	146	120	(473)	50	215	4,131	4,189
Prior year adjustment - IFRS 15 Revenue from contracts with customers (see note 1)	-	-	-	-	-	(138)	(138)
Balance at 1 January 2018 (as restated)	146	120	(473)	50	215	3,993	4,051
Profit and total comprehensive income for the period	-	-	-	-	-	622	622
Dividends	-	-	-	-	-	(327)	(327)
Share options exercised	-	-	174	-	(76)	(83)	15
Share based payment reserve	-	-	-	-	70	-	70
At 30 June 2018 (unaudited)	146	120	(299)	50	209	4,205	4,431

 

Consolidated statement of changes in equity

Six months ended 30 June 2018

Six months ended 30 June 2017:

	Share capital	Share premium	Own shares held	Capital redemption reserve	Share based payment reserve	Profit and loss	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2017 (audited)	145	96	(473)	50	95	3,455	3,368
Profit and total comprehensive income for the period	-		-	-	-	497	497
Dividends (restated)	-	-	-	-	-	(277)	(277)
Share based payment reserve	-		-	-	58	-	58
At 30 June 2017 (unaudited)	145	96	(473)	50	153	3,675	3,646

Year ended 31 December 2017:

	Share capital	Share premium	Own shares held	Capital redemption reserve	Share based payment reserve	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2017 (Audited)	145	96	(473)	50	95	3,455	3,368
Profit (as restated)	-	-	-	-	-	983	983
Dividends	-	-	-	-	-	(445)	(445)
Share options exercised	1	24	-	-	-	-	25
Share based payment charge	-	-	-	-	120	-	120
At 31 December 2017 Audited (Restated)	146	120	(473)	50	215	3,993	4,051

 

Consolidated statement of financial position 

As at 30 June 2018

		Six-month period ended 30 June 2018 Unaudited	Six-month period ended 30 June 2017 Unaudited (Restated)	Year ended 31 December 2017 Audited (Restated)
		£'000	£'000	£'000
Assets
Non-current
Goodwill		132	132	132
Other intangible assets		382	576	472
Property, plant and equipment		1,494	1,418	1,410
Deferred tax asset		82	59	84
		2,090	2,185	2,098
Current
Cash and cash equivalents		-	-	161
Inventories		8	12	6
Trade and other receivables		14,900	10,606	13,052
Total current assets		14,908	10,618	13,219
Total assets		16,998	12,803	15,317
Liabilities
Current
Trade and other payables		(6,151)	(4,908)	(6,310)
Corporation tax		(324)	(141)	(176)
Current borrowings		(6,026)	(4,051)	(4,712)
Total current liabilities		(12,501)	(9,100)	(11,198)
Non-current liabilities
Deferred tax liabilities		(66)	(57)	(68)
Net assets		4,431	3,646	4,051
Equity
Share capital		146	145	146
Share premium		120	96	120
Capital redemption reserve		50	50	50
Own shares held		(299)	(473)	(473)
Share based payment reserve		209	153	215
Profit and loss account		4,205	3,675	3,993
Total equity		4,431	3,646	4,051

 

 

Consolidated statement of cash flows

Six months ended 30 June 2018

		Six-month period ended 30 June 2018 Unaudited	Six-month period ended 30 June 2017 Unaudited	Year ended 31 December 2017 Audited     (Restated)
	Notes	£'000	£'000	£'000
Cash flows from operating activities
Profit from operations	2	831	627	1,247
Adjustments for:
Depreciation and amortisation		204	199	399
Employee equity settled share options charge		70	58	120
Change in inventories		(2)	-	6
Change in trade and other receivables		(1,848)	577	(1,869)
Change in trade and other payables		(486)	(955)	881
Cash (outflow) / inflow from operations		(1,231)	506	784
Income tax paid		-	-	(226)
Net cash (outflow) / inflow from operating activities		(1,231)	506	558
Cash flows from investing activities
Purchases of property, plant and equipment		(198)	(291)	(379)
Net cash used in investing activities		(198)	(291)	(379)
Cash flows from financing activities
Interest payments		(61)	(37)	(81)
Dividends paid		-	-	(445)
Proceeds from exercise of share options		15	-	25
Net cash outflow from financing activities		(46)	(37)	(501)
Net (decrease) / increase in cash and cash equivalents		(1,475)	178	(322)
Cash and cash equivalents at beginning of period		(4,551)	(4,229)	(4,229)
Cash and cash equivalents at end of period	6	(6,026)	(4,051)	(4,551)

 

Notes to the interim statement

Six months ended 30 June 2018

 

1.    Accounting policies

a)     General information

                 RTC Group Plc is incorporated and domiciled in England and its shares are publicly traded on AIM. The registered office address is The Derby Conference Centre, London Road, Derby, DE24 8UX.  The company's registered number is 02558971. The principal activities of the Group are described in note 2.                     

                 The Board consider the principal risks and uncertainties relating to the Group for the next six months to be the same as detailed in our last Annual Report and Accounts to 31 December 2017.  The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2017.

                 b)     Basis of preparation

                 The unaudited interim Group financial information of RTC Group Plc is for the six months ended 30 June 2018 and does not comprise statutory accounts within the meaning of S.435 of the Companies Act 2006. The unaudited interim Group financial statements have been prepared in accordance with the AIM rules and have not been reviewed by the Group's auditors. This report should be read in conjunction with the Group's Annual Report and Accounts for the year ended 31 December 2017, which have been prepared in accordance with IFRS's as adopted by the European Union.

                 These unaudited interim Group financial statements were approved for issue on 30 July 2018.  No significant events, other than those disclosed in this document, have occurred between 30 June 2018 and this date.

                 c)      Comparatives

                 The comparative figures for the year ended 31 December 2017 do not constitute statutory accounts within the meaning of S.435 of the Companies Act 2006, but they have been derived from the audited financial statements for that year, which have been filed with the Registrar of Companies. The report of the auditor was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006 nor a reference to any matters which the auditor drew attention by way of emphasis of matter without qualifying their report. The comparative figures have been adjusted to reflect the prior year restatement to implement the adoption of new accounting standards.

                 The comparative figures for the period ended 30 June 2017 were not impacted by the adoption of new accounting standards but have been restated to present the final dividend declared for the year ended 31 December 2016 as a liability, following approval at the AGM on 19 April 2017.

                 d)     Accounting policies

In preparing these interim financial statements, the Board have considered the impact of new standards which will be applied in the 2018 Annual Report and Accounts. Other than the adoption of IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments, which are both effective for accounting periods starting on or after 1 January 2018, there are not expected to be any changes in the accounting policies compared to those applied at 31 December 2017.

 

Notes to the interim statement

Six months ended 30 June 2018

d)     Accounting policies (continued)

A full description of accounting policies is contained with our 2017 Annual Report and Accounts which is available on our website.

This interim announcement has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards issued by the International Accounting Standards Board, as adopted by the European Union as effective for periods beginning on or after 1 January 2018.

New accounting standards

The Group has adopted the following new standards (effective 1 January 2018) in these interim financial statements:

IFRS 15 Revenue from contracts with customers (effective 1 January 2018).  IFRS 15 sets out a single and comprehensive framework for revenue recognition. The guidance in IFRS 15 is considerably more detailed than previous IFRSs for revenue recognition (IAS 11 Construction Contracts and IAS 18 Revenue and associated Interpretations).  An assessment of the impact of IFRS 15 has been completed, including a comprehensive review of the contracts that exist across the Group's revenue streams. This has ascertained that for the current contracts within the Group there will be no significant impact on revenue as previously recognised. However, because of the transition to IFRS 15, deferred costs of £171,000 associated with certain contracts at 31 December 2017 (31 December 2016: £Nil, 30 June 2017: £Nil) were identified which do not meet the recognition criteria in IFRS 15. Accordingly, the comparative figures have been restated to reflect the adoption of IFRS15, together with the associated tax impact. 

IFRS 9 Financial instruments (effective 1 January 2018). IFRS 9 addresses the classification and measurement of financial assets and liabilities and replaces IAS 39.  Among other things, the standard introduces a forward- looking credit loss impairment model whereby entities need to consider and recognise impairment triggers that might occur in the future (an "expected loss" model). The Board has considered the potential impact of the introduction of IFRS9 and determined that it does not have a significant impact on numbers reported in the financial statements for the year ended 30 June 2018 or as previously presented.

The impact of new standards that have been issued but are not yet effective has also been considered, the most significant being IFRS 16. Whilst the Board has reviewed the implications for the Group and determined the likely impact, they have decided that early adoption is not appropriate.

 

Notes to the interim statement

Six months ended 30 June 2018

d)     Accounting policies (continued)

IFRS 16 Leases (effective 1 January 2019) IFRS 16 sets out the principles for recognition, measurement, presentation and disclosure of leases and will replace IAS 17 Leases.  Adoption of IFRS 16 will result in the Group recognising right of use assets and lease liabilities for all qualifying contracts that are, or contain, a lease. Instead of recognising an operating expense for its operating lease payments, the Group will instead recognise interest on its lease liabilities and amortisation on its right-of-use assets, impacting profit from operations and the finance expense.  The standard is effective for accounting periods beginning on or after 1 January 2019 and contains several options and exemptions which are available at initial adoption.  The Board have reviewed the expected impact of this standard and their current assessment, based on applying the modified retrospective transition method and adopting certain practical expedients, is that the right of use asset to be recognised as the 1 January 2019 will be approximately £4m, together with a corresponding lease obligation of £4m. The impact on profit before tax for the Group for the financial year ended 31 December 2019 is not expected to be material and there will be no impact on opening equity at 1 January 2019.

2.     Segment analysis

The Group is a provider of recruitment services that has its headquarters at the Derby Conference Centre which is contained within the Central Services segment.  The recruitment business comprises three distinct business units - ATA predominantly servicing the UK engineering market; GSS servicing the international market and Ganymede supplying labour into safety critical environments.

Segment information is provided below in respect of ATA, Ganymede, GSS and the Central Services which, as well as being the head office and providing all central services for the Group, generates income from excess space at the Derby site including rental and conferencing facilities.

The Group manages the trading performance of each segment by monitoring operating contribution and centrally manages working capital, borrowings and equity.

Revenues are generated from permanent and temporary recruitment and contracts for labour supply in the recruitment division.  Revenue is analysed by origin of customer/point of invoicing. 

All revenues have been invoiced to external customers.  During the first half of 2018, one customer in ATA contributed 10% or more of that segment's revenues being £4.3m (2017: £3.2m), one customer in GSS contributed 10% or more of that segment's revenues being £6.5m (2017: £4.8m) and one customer in Ganymede also contributed 10% or more of that segment's revenues being £9.4m (2017: £11.7m).

 

Notes to the interim statement

Six months ended 30 June 2018

      The segment information for the reporting period is as follows:
 

      Six months ended 30 June 2018:

			Recruitment						Central	Total
Unaudited		ATA			GSS		Ganymede		Services	Group
			£'000		£'000		£'000		£'000	£'000
External sales revenue			17,717		6,886		15,691		831	41,125
Cost of sales			(14,649)		(5,987)		(13,443)		(381)	(34,460)
Gross profit			3,068		899		2,248		450	6,665
Administrative expenses*			(2,121)		(355)		(1,484)		(1,670)	(5,630)
Amortisation of intangibles*			(25)		-		(65)		-	(90)
Depreciation*			(9)		(2)		(17)		(86)	(114)
Profit / (loss) from operations			913		542		682		(1,306)	831
Finance expense										(61)
Profit before tax										770
Tax expense										(148)

*combine to represent administrative expenses of £5,834,000 in the consolidated statement of comprehensive income.

Six months ended 30 June 2017: 

			Recruitment						Central	Total
Unaudited		ATA			GSS		Ganymede		Services	Group
			£'000		£'000		£'000		£'000	£'000
External sales revenue			13,674		4,832		15,862		759	35,127
Cost of sales			(11,126)		(4,319)		(13,327)		(354)	(29,126)
Gross profit			2,548		513		2,535		405	6,001
Administrative expenses*			(1,973)		(305)		(1,427)		(1,470)	(5,175)
Amortisation of intangibles*			(24)		-		(66)		-	(90)
Depreciation*			(16)		-		(15)		(78)	(109)
Profit / (loss) from operations			535		208		1,027		(1,143)	627
Finance expense										(37)
Profit before tax										590
Tax expense										(93)

*combine to represent administrative expenses of £5,374,000 in the consolidated statement of comprehensive income.

 

Notes to the interim statement

Six months ended 30 June 2018

Year ended 31 December 2017:

		Recruitment			Central	Total
Audited (Restated)		ATA	GSS	Ganymede Restated	Services	Group Restated
		£'000	£'000	£'000	£'000	£'000
External sales revenue		29,166	10,259	30,683	1,579	71,687
Cost of sales		(24,056)	(9,047)	(25,862)	(745)	(59,710)
Gross profit		5,110	1,212	4,821	834	11,977
Administrative expenses*		(3,710)	(673)	(2,877)	(3,062)	(10,332)
Amortisation of intangibles*		(48)	-	(131)	-	(179)
Depreciation*		(52)	(2)	(33)	(132)	(219)
Profit / (loss) from operations		1,300	537	1,780	(2,360)	1,247
Finance expense						(81)
Profit before tax						1,166
Tax expense						(183)

*combine to represent administrative expenses of £10,730,000 in the consolidated statement of comprehensive income.

All assets and liabilities are held in the United Kingdom.

 

Notes to the interim statement

Six months ended 30 June 2018

3.  Income tax

Continuing operations	Six-month period ended 30 June 2018 Unaudited	Six-month period ended 30 June 2017 Unaudited	Year ended 31 December 2017 Audited (Restated)
	£'000	£'000	£'000
Analysis of tax:
Current tax
UK corporation tax	148	141	252
Adjustment in respect of previous period	-	-	5
	148	141	257
Deferred tax	-	(29)	(74)
Adjustment in respect of previous period	-	(19)	-
Tax	148	93	183

Factors affecting the tax expense

The tax assessed for the six-month period ended 30 June 2018 is higher than would be expected by multiplying profit on ordinary activities by the standard rate of corporation tax in the UK of 19% (2017:19.25%). The differences are explained below:

	Six-month period ended 30 June 2018 Unaudited	Six-month period ended 30 June 2017 Unaudited	Year ended 31 December 2017 Audited (Restated)
Factors affecting tax expense	£'000	£'000	£'000
Result for the period before tax	770	590	1,166
Profit multiplied by standard rate of tax of 19% (2017: 19.25%)	146	114	224
Non-deductible expenses	27	(1)	24
Tax credit on exercise of options	(25)	-	(8)
Other movements	-	(1)	(62)
Adjustment in respect of previous period	-	(19)	5
Tax charge for the period	148	93	183

Notes to the interim statement

Six months ended 30 June 2018

4.   Dividends

At the 30 June 2018 the final dividend in respect of the year ended 31 December 2017 of £326,984 (2017: £277,362) was recognised following approval at the AGM on 18 April 2018 and paid to shareholders on 1 July 2018.  The Directors also propose an interim dividend of 1.3p per share (2017: 1.2p). The interim dividend will be paid on 30 November 2018 to shareholders on the register on 9 November 2018.

5.   Earnings per share

The calculation of basic earnings per share is based on the earnings attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year.

The calculation of diluted earnings per share is based on the basic earnings per share adjusted to allow for all dilutive potential ordinary shares.

	Basic		Diluted
	Six-month period ended 30 June 2018	Six-month period ended 30 June 2017	Six-month period ended 30 June 2018	Six-month period ended 30 June 2017
	Unaudited	Unaudited	Unaudited	Unaudited
Earnings £'000	622	497	622	497
Basic weighted average number of shares	14,216,680	13,868,126	14,216,680	13,868,126
Dilutive effect of share options	-	-	969,723	792,794
Fully diluted weighted average number of shares	-	-	15,186,403	14,660,920
Earnings per share (pence)	4.38p	3.58p	4.10p	3.39p

The basic earnings per share at 31 December 2017 (restated) was 7.07p and diluted earnings per share (restated) was 6.61p.

 

Notes to the interim statement

Six months ended 30 June 2018

6.   Reconciliation of cash and cash equivalents in cash flow to cash balances in statement of financial position

		At 1 January 2018 Audited			Cash and cash equivalents	At 30 June 2018 Unaudited
		£'000			£'000	£'000
Overdraft and invoice discounting arrangements		(4,712)			(1,475)	(6,026)
Cash		161			-	-
Cash and cash equivalents		(4,551)			(1,475)	(6,026)

The Group has a working capital facility with HSBC Plc that allows it to borrow up to 90% of the invoiced trade debtors of ATA, GSS and Ganymede up to a maximum of £9.0m and an overdraft facility of £50,000.

7.  Borrowings

Included in current borrowings are bank overdrafts and an invoice discounting facility which is secured by a cross guarantee and debenture over all Group companies.  There have been no defaults or breaches of the terms of the facility during the current or prior period.

 

END

 

 

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