05 September 2012
Smart Metering Systems plc
("SMS" or "the Company")
Interim Results for the six months ended 30 June 2012
Smart Metering Systems plc (AIM: SMS.L) is pleased to announce its interim results which show a strong trading performance for the six months ended 30 June 2012 and a maiden dividend to shareholders.
Financial Highlights
· Revenue increased by 25% to £9.3m (H1 2011:£7.4m)
· Recurring meter rental increased by 39% to £4.2m (H1 2011: £3.0m)
· Gross Profit increased by 53% to £5.8m (H1 2011:£3.8m)
· EBITDA* increased by 66% to £4m (H1 2011:£2.4m)
· PBT* increased by 88% to £2.9m (H1 2011:£1.5m)
· Basic earnings per share increased by 46% to 2.6p (H1 2011:1.78p)
· Maiden dividend of 0.5p per ordinary share
*Excluding exceptional items and fair value adjustments
Operational Highlights
· Total meter portfolio increased by 25% to 283,275 (H1 2011: 227,517)
· Increase of 51% in capital investment in meter assets to £5.9m (H1 2011: £3.9m), bringing the total to £26.4m
· Increase in annualised recurring revenue of 38% to £9.1m (H1 2011: £6.6m)
· Significant new contracts announced
· Gas Suppliers
§ Scottish and Southern Energy (SSE) : c180,000 domestic meters
§ Total Gas and Power (TGP) : Initial Quantity of 15,000 I & C meters and ADM™ devices
§ Contract Natural Gas (CNG) : Initial Quantity of 1475 I&C meters and ADM™ devices with exclusive arrangement to the balance of their portfolio estimated at over 20,000 I&C meters
· Energy Brokers; providers of brokerage services to small medium and large group consumers
§ BIU, Solis, Energi, Imserve and ISS for ADM™ devices and gas meters
· Trials commenced in the Water and LPG markets in the UK for the ADM™ device
Post balance Sheet Events
· New banking club arrangement announced on 2 August 2012 for £45m with Barclays Bank PLC (lead bank), Clydesdale Bank PLC and Lloyds Bank PLC, replacing all existing facilities
· Received Full European Patent Approval for the ADM™ device effective 15 August 2012
· Total portfolio increased to 296,000 at 31 Aug 2012 with a corresponding annualised recurring rental increase to £9.65m
· New contract with DONG Energy Sales Limited (formerly Shell Gas Direct) announced on 30 August. This contract includes the provision of ADM™.
Alan Foy, Chief Executive Officer, commented: "SMS has had another strong trading period, with significant new contracts in both the domestic and I & C markets in addition to our first sales of the ADM™ device , enhanced by securing banking facilities to support our plans. We look forward to the future with confidence which underpins our decision to announce our maiden dividend to shareholders."
For Further Information:
Smart Metering Systems plc Alan Foy, Chief Executive Officer Glen Murray, Finance Director
|
0141 249 3850 |
Cenkos Securities Ken Fleming Jon Fitzpatrick
|
0131 220 6939 / 0207 397 8900 |
Kreab Gavin Anderson Ken Cronin Anthony Hughes |
020 7074 1800 |
Notes to Editors
About Smart Metering Systems
Established in 1995, Smart Metering Systems plc based in Glasgow, connects, owns, operates and maintains metering systems and databases on behalf of major energy companies.
Currently the Company is concentrating its efforts on offering its unique integrated services to the UK industrial and commercial gas market in which its customers have an 80% market share.
The Company has further applications for gas with its ADM™ device which allows "smart" functions such as remote reading and half hourly consumption data to be offered to customers in addition to the normal metering services. Longer term the Company also has additional applications for water and LPG.
The Company was admitted to the AiM market in July 2011 and is now part of the FTSE AiM 50 index, for more information on SMS please visit the Company's website: www.sms-plc.com
Chairman's and Chief Executive Officer's Statement
We are delighted to announce strong trading in the first six months of 2012. During the period, the Company's performance benefited from the full impact of meters that were installed last year and as a result, growth in profitability outstripped portfolio growth in the first half of the current year.
Operational Review
As stated at the time of our 2011 annual results, our core focus is on gas meters in the UK where we aim to:
· be market leader in the independent ownership of I & C meters;
· establish ADM™ as the industry standard smart metering solution for I & C clients; and
· grow our domestic meters business organically and potentially through new contracts
During the period we have made substantial progress in all three areas, leading to a 25% increase in our gas meter portfolio, an increase in annualised recurring revenue of 38% to £9.1m and the first sales of our ADM™ device.
Industrial and Commercial meters
During the period we were delighted to announce two major new contracts for the provision of gas meters within the I & C market with Contract Natural Gas (CNG) and Total Gas & Power Limited (TGP). The run rates for both contracts are currently being established but current estimates are for a combined programme in excess of 16,475 meters ( TGP and CNG initial quantity combined) over a three year period.
In addition, SMS has also contracted with five energy brokers who provide brokerage and energy management services to small, medium and large group consumers for the provision of the ADM™ device and gas meters.
Once installed these meters will be on SMS's long term index linked contracts.
The importance of this market to SMS is underlined by the fact that, given the greater revenue that is generated from the provision of I & C meters, the equivalent number of domestic meters for these contracts would be in the order of 250,000.
UK Gas Connections continues to be cash generative and secure gas meter ownership for the group, it has performed in-line with management expectations.
ADM™
The I & C market provides SMS with a significant opportunity because of the combination of the full service capability of its meter asset management division and the now proven automated meter reading solution provided by the ADM™ device. This has been demonstrated by the fact that the TGP and CNG contracts, include installing the device as part of the meter replacement programme. This is providing SMS with an important market leading advantage and an additional source of income.
The large I & C market (estimated at greater than 300,000) has to move to an advanced metering solution of which around 60,000 of the very large category have to be completed or contracted to be completed by 2014.
The small I & C market (estimated by SMS at over 1.2m meters), has until 2014 to either opt for an advanced metering solution such as the ADM™ device or alternatively they can be included in the government's proposed domestic roll out of smart meters.
SMS believes that both market segments will find the ADM™ device an attractive solution, based on its competitive price and ease of installation.
In addition to the two new gas supplier clients and five new energy broker clients signed up to the ADM™ device and gas meters during the period' trials continue with a number of other potential customers. Since the period end, we have also recently announced a new contract with DONG Energy Sales Limited (Formerly Shell Gas Direct) for the provision of meter services and sales of the ADM™ device. The Company also continues to progress the potential use of the ADM™ device in other sectors such as the UK's water and LPG industries where trials have commenced.
Domestic Meters
In May, SMS was contracted by SSE to provide Meter Operations Services in all regions outside of Scotland and the South East of England for two years. The service provision includes the installation, commissioning, testing, repair, maintenance and removal and/or replacement of metering equipment under similar contractual provisions already in place for SMS's current meter portfolio. The current estimate is that this will add a further c180,000 units to the SMS meter portfolio over the lifetime of the contract. This new agreement replaced an agreement SSE have had with the market leader in the domestic asset management business and marks a deepening of SMS' relationship with SSE.
Financial Review
In the first half of 2012, the Company increased revenue by 25% to £9.3m over the same period last year. This was as a result of increasing meters under ownership and management and the time lag effect of full revenue recognition in H1 2012 of meters installed in 2011. In addition, as a result of our index linked contracts, revenues were boosted by the contracted annual RPI increase. Recurring revenue, in line with the Company's strategy, increased from 40% of the total in the first half of 2011 to 45% in the same period in 2012, which compares favourably to 41% for the entirety of 2011.
Administration expenses, at £2.6m (excluding exceptional costs) were up 35% compared to the first half of 2011, substantially due to investment in staff numbers which have increased from 47 to 68 in line with the growth of the Company and its listed status, and increased depreciation due to the increased meter base held by the Company.
Finance costs decreased marginally from £326k to £318k due to lower outstanding debt in the period, with the majority of our investment in meter assets being funded from IPO proceeds.
Profit before tax increased from £1.5m to £2.5m and profit after tax from £1.2m to £2.2m. Net debt decreased to £6.3m (H1 2011:£10.1m) and net debt/EBITDA* ratio 0.78.
As at 30 June 2012, the Company had debt of £10.5m compared to £11.4m in the first half of 2011, cash balances of £4.2m (2011 £1.3m), unused facilities of £7.5m and gearing of 43% (398% H1 2011)
On 2 August 2012, SMS announced a new banking club arrangement with three major UK banks. The £45 million facility with Barclays Bank PLC (lead bank), Clydesdale Bank PLC and Lloyds Bank PLC replaced the existing arrangement with Clydesdale Bank PLC. SMS intends to use the new facility to fund the purchase of meter assets during a phased installation over the course of the next 24 months in line with the recent substantial contract wins. Interest is paid quarterly at 2.9% plus 3 month rolling LIBOR on the outstanding balance with drawn funds repaid equally over 10 years. 1.45% is paid on undrawn funds. SMS has entered into a hedge arrangement to swap 3 month rolling LIBOR, currently at c.0.7%, to a fixed 0.90-0.92% over 4 years for c.70% of the facility.
Capital investment in meters was £5.9m in the first half compared to £3.9m in H1 2011.
(*Excluding exceptional items and fair value adjustments)
Dividend
At the time of our admission to AiM, we stated that we intended to adopt a dividend policy that will take account of the Group's profitability, underlying growth prospects and availability of cash and distributable reserves, while maintaining an appropriate level of dividend cover.
SMS is therefore delighted to announce its maiden cash dividend to shareholders. An interim dividend of 0.5 pence per ordinary share will be paid on 22 November 2012 to those shareholders on the register (record date) on 19 October 2012 with an ex-dividend date of 17 October 2012.
In line with our dividend policy it is the intention of the Board to also pay a final dividend for the current year which will be announced at the time of the preliminary results in April 2013.
Outlook
SMS has continued to make significant progress against its core objectives, with recent contract wins (SSE, Total and CNG) prospectively adding the equivalent of 430,000 domestic meters. Further new clients, positive progress in the trialling of the Group's smart meter technology and new banking arrangements have underpinned the growth of the business. The board continues to look to the future with optimism.
SMS plc
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2012
|
|
|
|
|
6 Months ended |
6 Months ended |
Year ended |
|
|
|
|
|
30 June 2012 |
30 June 2011 |
31 December 2011 |
|
|
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
REVENUE |
|
|
|
|
9,272 |
7,391 |
15,964 |
Cost of sales |
|
|
|
(3,517) |
(3,625) |
(7,109) |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
5,755 |
3,766 |
8,855 |
|
|
|
|
|
|
|
|
|
Administrative expenses |
|
|
(2,922) |
(1,906) |
(5,050) |
||
|
|
|
|
|
|
|
|
PROFIT FROM OPERATIONS |
|
|
2,833 |
1,860 |
3,805 |
||
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
Operating profit before exceptional items |
|
3,184 |
1,860 |
4,482 |
|||
Exceptional items and fair value adjustments |
(351) |
- |
(677) |
||||
|
|
|
|
|
|
|
|
Finance costs |
|
|
|
(318) |
(326) |
(535) |
|
Finance income |
|
|
|
23 |
- |
41 |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAXATION |
|
|
2,538 |
1,534 |
3,311 |
||
Taxation |
|
|
|
|
(370) |
(344) |
(1,121) |
|
|
|
|
|
|
|
|
PROFIT FOR THE YEAR |
|
|
|
|
|
||
ATTRIBUTABLE TO EQUITY HOLDERS |
|
2,168 |
1,190 |
2,190 |
|||
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
- |
- |
- |
||
|
|
|
|
|
|
|
|
Total comprehensive income |
|
|
2,168 |
1,190 |
2,190 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic (pence) |
|
2.60 |
1.78 |
2.93 |
|||
|
|
|
|
|
|
|
|
Earnings per share - diluted (pence) |
|
2.53 |
1.78 |
2.90 |
|||
|
|
|
|
|
|
|
|
SMS plc
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2012
|
|
|
|
|
30 June 2012 |
30 June 2011 |
31 December 2011 |
|
|
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
|
£'000 |
£'000 |
£'000 |
ASSETS |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
||
Intangible assets |
|
|
|
1,890 |
1,948 |
1,885 |
|
Property, plant and equipment |
|
|
26,602 |
16,463 |
21,327 |
||
|
|
|
|
|
28,492 |
18,411 |
23,212 |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Inventories |
|
|
|
227 |
9 |
83 |
|
Trade & other receivables |
|
|
2,428 |
2,679 |
1,606 |
||
Cash and cash equivalents |
|
|
4,233 |
1,269 |
7,317 |
||
Other current financial assets |
|
|
7 |
56 |
18 |
||
|
|
|
|
|
6,895 |
4,013 |
9,024 |
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
|
35,387 |
22,424 |
32,236 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade and other payables |
|
|
7,747 |
7,146 |
6,379 |
||
Bank loans and overdrafts |
|
|
1,348 |
1,174 |
1,328 |
||
Obligations under hire purchase agreements |
4 |
- |
3 |
||||
Other current financial liabilities |
|
361 |
205 |
339 |
|||
|
|
|
|
|
9,460 |
8,525 |
8,049 |
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
||
Bank loans |
|
|
|
9,152 |
10,199 |
9,845 |
|
Obligations under hire purchase agreements |
11 |
- |
13 |
||||
Deferred tax liabilities |
|
|
2,023 |
1,163 |
1,873 |
||
|
|
|
|
|
11,186 |
11,362 |
11,731 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
20,646 |
19,887 |
19,780 |
||
|
|
|
|
|
|
|
|
NET ASSETS |
|
|
|
14,741 |
2,537 |
12,456 |
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
Share capital |
|
|
|
833 |
666 |
833 |
|
Share premium |
|
|
|
8,653 |
- |
8,653 |
|
Other reserves |
|
|
|
1 |
1 |
1 |
|
Retained earnings |
|
|
|
5,254 |
1,870 |
2,969 |
|
|
|
|
|
|
|
|
|
TOTAL EQUITY ATTRIBUTABLE TO |
|
|
|
|
|||
EQUITY HOLDERS OF THE PARENT COMPANY |
14,741 |
2,537 |
12,456 |
||||
|
|
|
|
|
|
|
|
SMS plc
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE PERIOD ENDED 30 JUNE 2012
|
|
|
|
Share |
Share |
Other |
Retained |
|
|
|
|
|
capital |
premium |
reserve |
earnings |
Total |
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
Attributable to owners of the parent |
|
|
|
|
|
|||
company: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at 1 July 2011 |
|
|
666 |
- |
1 |
1,870 |
2,537 |
|
|
|
|
|
|
|
|
|
|
Profit for period |
|
|
- |
- |
- |
1,000 |
1,000 |
|
|
|
|
|
|
|
|
|
|
Transactions with owners in their |
|
|
|
|
|
|||
capacity as owners: |
|
|
|
|
|
|
||
Shares issued |
|
|
167 |
9,833 |
- |
- |
10,000 |
|
Share issue costs |
|
|
- |
(1,180) |
- |
- |
(1,180) |
|
Share options |
|
|
- |
- |
- |
99 |
99 |
|
|
|
|
|
|
|
|
|
|
Balance as at 31 December 2011 |
833 |
8,653 |
1 |
2,969 |
12,456 |
|||
|
|
|
|
|
|
|
|
|
Profit for period |
|
|
- |
- |
- |
2,168 |
2,168 |
|
|
|
|
|
|
|
|
|
|
Transactions with owners in their |
|
|
|
|
|
|||
capacity as owners: |
|
|
|
|
|
|
||
Share options |
|
|
- |
- |
- |
117 |
117 |
|
|
|
|
|
|
|
|
|
|
Balance as at 30 June 2012 |
|
833 |
8,653 |
1 |
5,254 |
14,741 |
||
|
|
|
|
|
|
|
|
|
SMS plc
CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2012
|
30 June 2012 |
30 June 2011 |
31 December 2011 |
|
Unaudited |
Unaudited |
Audited |
|
£'000 |
£'000 |
£'000 |
|
|
|
|
CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
Profit before taxation |
2,538 |
1,534 |
3,311 |
Finance costs |
318 |
326 |
535 |
Finance income |
(23) |
- |
(41) |
Fair value movements on derivatives |
33 |
- |
249 |
Depreciation |
678 |
416 |
956 |
Amortisation |
118 |
118 |
234 |
Share based payment expense |
117 |
- |
99 |
Increase in inventories |
(144) |
(9) |
(83) |
(Increase)/decrease in trade & other receivables |
(822) |
(1,515) |
(438) |
Increase in Trade & other payables |
1,148 |
1,150 |
128 |
|
|
|
|
CASH USED IN OPERATIONS |
3,961 |
2,020 |
4,950 |
|
|
|
|
Taxation |
- |
- |
- |
|
|
|
|
NET CASH USED IN OPERATIONS |
3,961 |
2,020 |
4,950 |
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
Payments to acquire property, plant and equipment |
(5,953) |
(3,938) |
(9,332) |
Disposal of fixed asset investment |
- |
- |
180 |
Payment to acquire intangible assets |
(123) |
(334) |
(388) |
Finance income |
23 |
- |
41 |
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES |
(6,053) |
(4,272) |
(9,499) |
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
Net proceeds from new borrowings less capital repaid |
(673) |
2,128 |
1,937 |
Net outflow from other long term creditors |
(1) |
(3) |
- |
Finance costs |
(318) |
(248) |
(535) |
Net proceeds from share issue |
- |
- |
8,820 |
Dividends paid |
- |
(180) |
(180) |
|
|
|
|
NET CASH GENERATED FROM FINANCING |
|
|
|
ACTIVITIES |
(992) |
1,697 |
10,042 |
|
|
|
|
|
|
|
|
Net (decrease)/increase in cash and cash equivalents |
(3,084) |
(555) |
5,493 |
|
|
|
|
Cash and cash equivalents at the beginning of the period |
7,317 |
1,824 |
1,824 |
|
|
|
|
Cash and cash equivalents at the end of the period |
4,233 |
1,269 |
7,317 |
|
|
|
|
SMS plc
Notes to the accounts
1 Basis of preparation and accounting policies
Basis of preparation
The Group's half yearly financial report consolidates the results of the company and its subsidiary undertakings made up to 30 June 2012. The company is a limited liability company incorporated and domiciled in Scotland and whose shares are quoted on AIM, a market operated by The London Stock Exchange.
The financial information contained in this half-yearly financial report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. It does not therefore include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 December 2011.
The financial information for the 6 months ended 30 June 2012 is also unaudited.
The Group's statutory accounts for the year ended 31 December 2011 have been delivered to the Registrar of Companies. The report of the auditors on these accounts was unqualified and did not contain a statement under Section 498 of the Companies Act 2006.
The financial statements have been prepared on a going concern basis which the directors believe is appropriate for the following reason:
The directors have prepared cashflow forecasts which show the Group expects to meet its liabilities as they fall due for a period in excess of 12 months from the date of these financial statements. Our forecasts show continued capital investment which is funded from retained profits and external finance. On 2 August 2012 the Group announced a new £45m banking facility, providing investment capital for the next two years.
Significant accounting policies
The accounting policies used in the preparation of the financial information for the six months ended 30 June 2012 are in accordance with the recognition and measurement criteria of International Financial Reporting Standards ('IFRS') as adopted by the European Union and are consistent with those which will be adopted in the annual statutory financial statements for the year ended 31 December 2012.
2 Segmental Reporting
For management purposes, the Group is organised into two core divisions, management of assets and installation of meters, which form the basis of the Group's reportable operating segments. Operating segments within those divisions are combined on the basis of their similar long term economic characteristics and similar nature of their products and services, as follows:
The management of assets comprises regulated management of gas meters and ADM units within the UK.
The installation of meters comprises the installation of domestic and industrial & commercial gas meters throughout the UK.
Management monitors the operating results of its divisions separately for the purpose of making decisions about resource allocation and performance assessment. The operating segments disclosed in the financial statements are the same as reported to the Board. Segment performance is evaluated based on gross profit or loss excluding operating costs not reported by segment, depreciation, amortisation of intangible assets and exceptional items.
The following tables' present information regarding the Group's reportable segments for the six months ended 30 June 2012, six months ended 30 June 2011 and the year ended 31 December 2011.
SMS plc |
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Notes to the accounts (cont.) |
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||||||||
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||||||||
2 |
Segmental Reporting (continued) |
|
Asset |
Asset |
|
Total |
|||
|
|
|
|
|
management |
installation |
Unallocated |
operations |
|
|
30 June 2012 |
|
|
|
£000's |
£000's |
£000's |
£000's |
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
|
|
4,189 |
5,083 |
- |
9,272 |
|
|
Operating costs |
|
|
|
(989) |
(2,528) |
- |
(3,517) |
|
|
Segment profit - group gross profit |
|
3,200 |
2,555 |
- |
5,755 |
|||
|
|
|
|
|
|
|
|
|
|
|
Items not reported by segment |
|
|
|
|
|
|||
|
Other operating costs |
|
|
- |
- |
(1,775) |
(1,775) |
||
|
Depreciation |
|
|
|
(647) |
- |
(31) |
(678) |
|
|
Amortisation |
|
|
|
(118) |
- |
- |
(118) |
|
|
Exceptional items |
|
|
|
- |
- |
(351) |
(351) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group operating profit after amortisation and |
2,435 |
2,555 |
(2,157) |
2,833 |
||||
|
exceptional items |
|
|
|
|
|
|
|
|
|
Net finance costs |
|
|
|
- |
- |
(295) |
(295) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax |
|
|
|
2,435 |
2,555 |
(2,452) |
2,538 |
|
|
Tax expense |
|
|
|
|
|
|
(370) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit for year |
|
|
|
|
|
|
2,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
Asset |
|
Total |
|
|
|
|
|
|
management |
installation |
Unallocated |
operations |
|
|
30 June 2011 |
|
|
|
£000's |
£000's |
£000's |
£000's |
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
|
|
3,018 |
4,373 |
- |
7,391 |
|
|
Operating costs |
|
|
|
(1,011) |
(2,614) |
- |
(3,625) |
|
|
Segment profit - group gross profit |
|
2,007 |
1,759 |
- |
3,766 |
|||
|
|
|
|
|
|
|
|
|
|
|
Items not reported by segment |
|
|
|
|
|
|||
|
Other operating costs |
|
|
- |
- |
(1,372) |
(1,372) |
||
|
Depreciation |
|
|
|
(397) |
- |
(19) |
(416) |
|
|
Amortisation |
|
|
|
(118) |
- |
- |
(118) |
|
|
|
|
|
|
|
|
|
|
|
|
Group operating profit after amortisation and |
|
|
|
|||||
|
exceptional items |
|
|
|
1,492 |
1,759 |
(1,391) |
1,860 |
|
|
Net finance costs |
|
|
|
- |
- |
(326) |
(326) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit before tax |
|
|
|
1,492 |
1,759 |
(1,717) |
1,534 |
|
|
Tax expense |
|
|
|
|
|
|
(344) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit for year |
|
|
|
|
|
|
1,190 |
|
|
|
|
|
|
|
|
|
|
|
SMS plc |
Notes to the accounts (cont.) |
|
2 |
Segmental Reporting (continued) |
|
Asset |
Asset |
|
Total |
||
|
|
|
|
|
management |
installation |
Unallocated |
operations |
|
31 December 2011 |
|
|
|
£000's |
£000's |
£000's |
£000's |
|
|
|
|
|
|
|
|
|
|
Segment revenue |
|
|
|
6,614 |
9,350 |
- |
15,964 |
|
Operating costs |
|
|
|
(1,973) |
(5,136) |
- |
(7,109) |
|
Segment profit - group gross profit |
|
4,641 |
4,214 |
- |
8,855 |
||
|
|
|
|
|
|
|
|
|
|
Items not reported by segment |
|
|
|
|
|
||
|
Other operating costs |
|
|
- |
- |
(3,182) |
(3,182) |
|
|
Depreciation |
|
|
|
(918) |
- |
(38) |
(956) |
|
Amortisation |
|
|
|
(235) |
- |
- |
(235) |
|
Exceptional items |
|
|
|
- |
- |
(677) |
(677) |
|
|
|
|
|
|
|
|
|
|
Group operating profit after amortisation and |
|
|
|
||||
|
exceptional items |
|
|
|
3,488 |
4,214 |
(3,897) |
3,805 |
|
Net finance costs |
|
|
|
- |
- |
(494) |
(494) |
|
|
|
|
|
|
|
|
|
|
Profit before tax |
|
|
|
3,488 |
4,214 |
(4,391) |
3,311 |
|
Tax expense |
|
|
|
|
|
|
(1,121) |
|
|
|
|
|
|
|
|
|
|
Profit for year |
|
|
|
|
|
|
2,190 |
|
|
|
|
|
|
|
|
|
|
All revenues and operations are based and generated in the UK. |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group has one major customer that generated turnover within each segment as listed below: |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 Months ended |
6 Months ended |
Year ended |
|
|
|
|
|
|
30 June 2012 |
30 June 2011 |
31 December 2011 |
|
|
|
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
|
|
|
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
|
|
Asset management |
|
|
|
2,530 |
2,034 |
4,380 |
|
|
Asset installation |
|
|
|
1,899 |
1,053 |
2,860 |
|
|
|
|
|
|
4,429 |
3,087 |
7,240 |
|
|
|
|
|
|
|
|
|
|
SMS plc |
Notes to the accounts (cont.) |
|
2 |
Segmental Reporting (continued) |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
No segmentation is presented for the majority of Group assets and liabilities as these are managed centrally, |
||||||
|
independently of operating segments. |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Those assets and liabilities that are managed and reported on a segmental basis are detailed below. |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
Asset |
Total |
|
|
|
|
|
management |
installation |
operations |
|
30 June 2012 |
|
|
|
£000's |
£000's |
£000's |
|
|
|
|
|
|
|
|
|
Assets reported by segment |
|
|
|
|
||
|
Intangible assets |
|
|
|
1,890 |
- |
1,890 |
|
Plant & machinery |
|
|
|
26,401 |
- |
26,401 |
|
Inventories |
|
|
|
227 |
- |
227 |
|
|
|
|
|
28,518 |
- |
28,518 |
|
Assets not reported by segment |
|
|
|
6,869 |
||
|
Total assets |
|
|
|
|
|
35,387 |
|
|
|
|
|
|
|
|
|
Liabilities reported by segment |
|
|
|
|
||
|
Obligations under hire purchase agreements |
15 |
- |
15 |
|||
|
|
|
|
|
15 |
- |
15 |
|
Liabilities not reported by segment |
|
|
|
20,631 |
||
|
Total liabilities |
|
|
|
|
|
20,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
Asset |
Total |
|
|
|
|
|
management |
installation |
Operations |
|
30 June 2011 |
|
|
|
£000's |
£000's |
£000's |
|
|
|
|
|
|
|
|
|
Assets reported by segment |
|
|
|
|
||
|
Intangible assets |
|
|
|
1,948 |
- |
1,948 |
|
Plant & machinery |
|
|
|
16,463 |
- |
16,463 |
|
Inventories |
|
|
|
9 |
- |
9 |
|
|
|
|
|
18,420 |
- |
18,420 |
|
Assets not reported by segment |
|
|
|
4,004 |
||
|
Total assets |
|
|
|
|
|
22,424 |
|
|
|
|
|
|
|
|
|
Liabilities reported by segment |
|
|
|
|
||
|
Obligations under hire purchase agreements |
- |
- |
- |
|||
|
|
|
|
|
- |
- |
- |
|
Liabilities not reported by segment |
|
|
|
19,887 |
||
|
Total liabilities |
|
|
|
|
|
19,887 |
|
|
|
|
|
|
|
|
SMS plc |
Notes to the accounts (cont.) |
|
2 |
Segmental Reporting (continued) |
|
|
|
|
||
|
|
|
|
|
Asset |
Asset |
Total |
|
|
|
|
|
management |
installation |
operations |
|
31 December 2012 |
|
|
|
£000's |
£000's |
£000's |
|
|
|
|
|
|
|
|
|
Assets reported by segment |
|
|
|
|
||
|
Intangible assets |
|
|
|
1,885 |
- |
1,885 |
|
Plant & machinery |
|
|
|
21,125 |
- |
21,125 |
|
Inventories |
|
|
|
83 |
- |
83 |
|
|
|
|
|
23,093 |
- |
23,093 |
|
Assets not reported by segment |
|
|
|
9,143 |
||
|
Total assets |
|
|
|
|
|
32,236 |
|
|
|
|
|
|
|
|
|
Liabilities reported by segment |
|
|
|
|
||
|
Obligations under hire purchase agreements |
16 |
- |
16 |
|||
|
|
|
|
|
16 |
- |
16 |
|
Liabilities not reported by segment |
|
|
|
19,764 |
||
|
Total liabilities |
|
|
|
|
|
19,780 |
|
|
|
|
|
|
|
|
3 |
Earnings per share |
|
|
|
6 Months to |
6 Months to |
Year to |
|
|
|
|
|
30 June |
30 June |
31 December |
|
|
|
|
|
2012 |
2011 |
2011 |
|
|
|
|
|
£000's |
£000's |
£000's |
|
|
|
|
|
|
|
|
|
Profit for year used for calculation of basic EPS |
2,168 |
1,190 |
2,190 |
|||
|
Amortisation of intangible assets |
|
118 |
118 |
235 |
||
|
Exceptional costs |
|
|
|
351 |
- |
677 |
|
Tax effect of adjustments |
|
|
(113) |
- |
(92) |
|
|
Earnings for the purpose of adjusted EPS |
|
2,524 |
1,308 |
3,010 |
||
|
|
|
|
|
|
|
|
|
Number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares for the |
|
|
|
|||
|
purpose of calculating basic EPS |
|
|
83,339,747 |
66,673,080 |
74,709,610 |
|
|
|
|
|
|
|
|
|
|
Effect of potentially dilutive ordinary shares: |
|
|
|
|||
|
- share options |
|
|
|
2,341,953 |
- |
728,577 |
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares for |
|
|
|
|||
|
the purpose of diluted EPS |
|
|
85,681,700 |
66,673,080 |
75,438,187 |
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
- basic (pence) |
|
|
|
2.60 |
1.78 |
2.93 |
|
- diluted (pence) |
|
|
|
2.53 |
1.78 |
2.90 |
|
|
|
|
|
|
|
|
|
Adjusted earnings per share: |
|
|
|
|
|
|
|
- basic (pence) |
|
|
|
3.03 |
1.96 |
4.03 |
|
- diluted (pence) |
|
|
|
2.95 |
1.96 |
3.99 |
|
|
|
|
|
|
|
|
|
The Directors consider that the adjusted earnings per share calculation gives a better understanding of the |
||||||
|
Group's earnings per share. |
|
|
|
|
|
SMS plc
Notes to the accounts (cont.)
4 Events after the Reporting Period
On 2 August 2012 the Group announced a new banking club arrangement.
The new £45m revolver facility is available for 24 months, repayable over 10 years, with a 5 year break. It replaces the previous facility of £19.5m.
5 |
Dividend |
|
|
|
6 Months to |
6 Months to |
Year to |
|
|
|
|
|
30 June |
30 June |
31 December |
|
|
|
|
|
2012 |
2011 |
2011 |
|
|
|
|
|
£000's |
£000's |
£000's |
|
|
|
|
|
|
|
|
|
Dividend on equity shares |
|
|
- |
- |
180 |
|
|
|
|
|
|
|
|
|
|
After 30 June the directors have approved an interim dividend of 0.5 pence per share for the year ending 31 December 2012, which has not been accrued as a liability as at 30 June 2012 in accordance with IAS 8. The dividend will be paid on 22 November 2012 with an ex-dividend date of 17 October 2012 and a record date of 19 October 2012. |
||||||
|
|||||||
|
6 The half yearly financial report was approved by the Board of Directors on 04 September 2012.
7 A copy of this half yearly financial report is available from the Company's Registered Office or by visiting our website at www.sms-plc.com.