Half Yearly Report

RNS Number : 1786P

TEG Group (The) PLC

30 September 2013

 

For release

07:00

30 September 2013

The TEG GROUP PLC (AIM: TEG)

("TEG" or "the Group")

INTERIM RESULTS

The TEG Group PLC, the AIM listed green technology company, which develops and operates organic composting and energy plants, announces its interim results for the half year ended 30 June 2013

Highlights

Financial

·      Results build on strong progress seen during second half of 2012.  Half year revenue up substantially to £12,906,000 (2012: £5,617,000)

·      Gross profit of £1,940,000 (2012: £1,268,000)

·      Group trading loss significantly reduced to £777,000 (2012: £1,789,000) 

·      The Group cash balance at 30 June 2013 was £1,739,000 (2012: £1,101,000)

·      No dividend is recommended

Operations

·      Revenues of the Group's own plant operations continue to grow strongly with operational revenues up 7% and waste volumes increased by 7%

·      Several new contracts secured during period and with Group passing the one million tonne mark for organic waste recycling

·      Flagship Dagenham plant progressing well, on time and in budget with IVC plant already in operation and operation of AD plant expected shortly

·      Perth AD Facility operating very successfully and generating power continuously since commissioning in early 2012

·      Construction of the fourth and final facility (Bolton), as part of the Greater Manchester Waste PFI Contract, is now complete and commissioning of the facility is in progress. 

Strategic activities

·      Offer of loans totalling £2.6m received to give TEG both working capital and funds to facilitate some future strategic activities

·      Funding offers received for next project in Gaydon, Warwickshire

Commenting, Rory Maw, Non-Executive Chairman, TEG Group Plc, said:

"I am pleased to see that TEG has been able to continue the significant progress it saw during the second half of 2012 and the ongoing success of the Group's own plant operations demonstrates that market demand for more capacity remains strong".

"Whilst the Group currently does face challenges in completing the Manchester contract, obtaining the associated cash retentions and recognising associated one-off charges in the current year, the funding offer received for the forthcoming Gaydon project, as well as our strong pipeline of tender opportunities and increasing market profile, allows us to anticipate significant future growth in forthcoming years".  

- ENDS -

Contact:
The TEG Group Plc	Tel: [phone]
Michael Fishwick, Chief Executive	www.theteggroup.plc.uk
Peckwater PR	Tel: [phone]
Tarquin Edwards	[e-mail]
N+1 Singer Advisory LLP (Nomad & Broker)	Tel: [phone]
Andrew Craig/Ben Wright

Editor's Notes

TEG

TEG provides state of the art technology for handling organic wastes.  Its in-vessel composting ("IVC") system is one of the few approved technologies capable of treating animal by-product ("ABP") waste and it is now providing an anaerobic digestion ("AD") technology to produce power from food waste.  Plant economics are predominantly driven by the gate fees charged, rather than the value of the end product (compost).  

The AD plants also benefit from power sales and Renewable Obligations Certificates ("ROCS") or Feed-in Tariffs ("FITs").  TEG owns its composting technology, the TEG Silo Cage System, and has an agreement with UTS Biogastechnik GmbH ("UTS") for the provision of AD technology into the UK waste markets.  The TEG processes are an economic and sustainable alternative to landfill.

The TEG Silo Cage System

The Silo Cage system, one of the few technologies capable of treating organic waste, is a natural process producing compost as an end product.  The compost is an excellent soil conditioner that fertilises, retains moisture, provides structure and reduces the incidence of plant disease.  TEG's Silo-Cages are housed in self-contained buildings, suitable for urban environments, are not unsightly and are environmentally friendly.

Collaboration with UTS

UTS is one of the world's leading biogas companies offering services in the planning, construction, delivery and installation of biogas plants and their key components.  UTS has its own production facilities and service shops, technical design and development departments as well as mobile mechanical and biological customer service technicians to support the international client base. 

UTS also develops and sells specialized mixers, pumps and a variety of solid/liquid separating devices related to the biogas and agro/food markets. It is headquartered near Munich, Germany with subsidiaries in Italy, Hungary, Spain, the Czech Republic and now a rapidly developing company UTS Biogas Limited, to service the United Kingdom & Ireland markets.

TEG Biogas (Perth) Limited

TEG Biogas (Perth) Limited ("TEG Biogas Perth") is a joint venture company established by TEG with Albion LLP.  TEG Biogas Perth has constructed a 15,000 tonnes per annum AD plant at TEG's Glenfarg site to produce nominally 0.7MW of electrical power and 0.2MW of heat that is to be used by Binn Eco Park.  The facility has been in operation, generating revenues from waste sales and power generation since Quarter 1 of 2012.  It has become one of the leading AD operations in Scotland.

TEG Biogas (London) Limited (TEGBL)

TEG Biogas (London) Limited ("TEG Biogas London") is a joint venture company established by TEG with funding partners led by Foresight Environmental Fund LP.   TEG Biogas London is constructing a combined In Vessel Composting (IVC) and AD plant in Dagenham that will process approximately 50,000 tonnes per annum of organic wastes and will generate approximately 1.4MW of power, sufficient to power approximately 2000 homes.   The IVC plant is already in operation and it is expected that the AD plant will commence operations in Quarter 3 of this year.  The facility, which is currently on time and in line with budget, is due to be handed over to the client, TEG Biogas (London) Limited, in Quarter 1 of 2014. 

TEG received a contract to construct the facility valued at approximately £16m and will operate the facility after handover as part of a 15-year operating contract.  The Group has a minority shareholding in TEGBL, which has been established as a joint venture with various funding partners.

General

Customers include local authorities, waste management companies, food processing companies, farmers and landowners.  The Company's expanding market is driven by increasingly stringent EU and UK legislation regulating the treatment and disposal of organic waste.  Statutory targets for the diversion of waste from landfill increase annually through to 2020, increasing TEG's market opportunity year on year. 

Chairman's statement

I am delighted to present the Group's interim report for the half year ended 30 June 2013, which was a positive trading period during which the Group has built on the progress seen in the second half of 2012. It is highly encouraging to note that the performance of the business in the 12-month period from June 2012 to June 2013 was the strongest in the Group's history.

Half year revenue for the period was up substantially to £12,906,000 (2012: £5,617,000) with the Group trading loss being significantly reduced to £777,000 (2012: £1,789,000 loss).  The Group recorded a gross profit of £1,940,000 (2012 interim £1,268,000 profit).

The Group cash balance as at 30 June 2013 was £1,739,000 (2012: £1,101,000).

Group Plant Operations

Revenues at the Group's own plant operations continued to grow in the first half of 2013 and we continue to be pleased with the performance of the BOO business.  Operational revenues grew by 7% in the first half of 2013 compared to the same period in 2012.  Waste volumes increased by 7% and overall gate fees have increased by 4%. 

The Group announced new contracts in the period with FCC Environment Limited ("FCC"), Perth and Kinross Council and Nottingham City Council.  A significant milestone was achieved when the Group passed the '1 million tonnes' mark for organic waste recycling, which has removed from the environment the equivalent of over 200,000 tonnes of CO₂emissions of landfill greenhouse gases.  Both the Todmorden and Telford facilities have been expanded in the first half of the year to accommodate the increasing demand from customers.

Perth Anaerobic Digestion (AD) Facility

The plant, owned by TEG Biogas (Perth) Limited, a joint venture with Albion LLP, has continued to perform well and has generated power continuously since commissioning in early 2012.  The facility benefits from Renewable Obligation Certificates (ROCs), receiving two ROCs for every MWh of power output. 

Greater Manchester Waste PFI Contract

Construction of the fourth and final facility (Bolton) is complete and commissioning of the facility is in progress.  A small delay was encountered due to a defect in a sub-contractor's works, which has been rectified, and Construction Completion has been achieved.  TEG expects to fully recover all expenditure from the sub-contractor. 

All three of the operating facilities have passed their 52-week availability tests.  Acceptance has not been achieved, however, due to the requirement for rectification works to the buildings and some services.  TEG is to carry out a programme of work to rectify these issues and the scope of works is currently being defined.  The Group has been advised that the majority of these works are covered by PI insurance and does not anticipate significant impact on the business plan.  However, the retentions of approximately £2.4m will not be released until such time as projects are completed and the Group is therefore expecting a further delay in cashflow.

The contract works are expected to close in the final quarter of 2014, when the 52-week defect liability period for the Bolton plant expires.  It is intended that all remedial works will have been completed before that time

Dagenham Project

Construction of the combined In Vessel Composting (IVC) and AD plant in Dagenham has progressed well.  The IVC plant is already in operation and it is expected that the AD plant will commence operations shortly.  The facility, which is currently on time and in line with budget, is due to be handed over to the client, TEG Biogas (London) Limited (TEGBL), in Quarter 1 of 2014.  The facility will process approximately 50,000 tonnes per annum of organic wastes and will generate approximately 1.4MW of power, sufficient to power approximately 2000 homes.

TEG received a contract to construct the facility valued at approximately £16m and will operate the facility after handover as part of a 15-year operating contract.  The Group has a minority shareholding in TEGBL, a joint venture with funding partners led by Foresight Environmental Fund LP.

Strategic Activities

As announced today, the Group was delighted to receive the offer of loans from two shareholders, Weekcorp and Bronsstädet and I was delighted that my family interest contributed to the funding, taking the total loans to £2.6m, This will provide TEG with both working capital and with capital to facilitate some future strategic activities.  The fees associated with this transaction will be recognised during the second half of 2013.

The Board was also very pleased to receive offers of funding for the next project in Gaydon, Warwickshire, which benefits from having both planning permission and an environmental permit in place.  Heads of Terms for the funding are now in place and it is expected that financial close of the project will be achieved in Quarter 4 of this year.  Unfortunately, the Group was unable to conclude the detailed financial terms in the first half of the year and consequently, we will not be able to book significant revenues on this project in the second half of 2013, as had originally been forecast.  This is simply a timing issue and we expect these revenues to be recognised in the first quarter of 2014.

Market Update

We continue to benefit from market growth as statutory obligations increase annually on waste producers to divert organic waste from landfill.  Landfill Tax ("LFT") rose by £8.00 per tonne in April 2013, increasing the tax to a total of £72.00 per tonne. Government has confirmed that LFT will rise by £8.00 per tonne per annum until at least 2014 with further rises expected through to 2020.  In addition, the Scottish Assembly has passed legislation to progressively introduce a complete ban on the landfill of organic waste in both the public and private sectors from 2014 and we see this legislative development as a great opportunity for the company. 

The Board is pleased to note a continued significant interest in both IVC and AD, supporting the Group's strategy of promoting both technologies in future project development. 

The wider regulatory environment continues to benefit the Group, as its technology lends itself to the additional level of containment required by the regulators, which is now being enforced generally. 

Board Changes

The Group Finance Director, Tanja Willis, has informed the Board that she intends to step down as Finance Director and to leave the Group to pursue other interests following nine years on the board.   Tanja has agreed to remain in post until early 2014 to allow the appointment of a successor and subsequent handover.  I would like to thank Tanja for her dedication and contribution to the Group and to wish her well for the future.

Future Prospects

The performance of the business over the last 12 months has been encouraging.  The continued success of the Group's own plant operations demonstrates that both market demand for more capacity remains strong and that with a secure funding position at the project level, the Group should be well placed to continue to take advantage of the expanding market. 

The Group faces challenges in completing the Manchester contract and obtaining the associated cash retentions, but believes it has a solid strategy and balance sheet to bring the contract to a conclusion. 

Administration costs will increase in the second half of 2013 due to some anticipated one-off charges, in large part the exceptional fees associated with the shareholder loan, though the underlying overhead costs are expected to be in line with Board expectation. 

It is very encouraging that a funding offer has been received for the forthcoming Gaydon project, and it is expected that this will result in significant revenues in 2014 and 2015.

TEG maintains a strong pipeline of tender opportunities and assuming timeliness of project funding, the Group continues to be in a strong position and has an exciting outlook. 

Rory Maw

Chairman

30 September 2013

Consolidated statement of comprehensive income

For the six months ended 30 June 2013

		Unaudited	Unaudited	Audited
		Total	Total	Total
		6 months ended 30 June 2013	6 months ended 30 June 2012	Year ended 31 December 2012
	Note	£'000	£'000	£'000
Revenue	3	12,906	5,617	22,418
Cost of sales		(10,966)	(4,349)	(17,804)
Gross profit		1,940	1,268	4,614
Administrative expenses		(2,565)	(2,905)	(5,487)
Amortisation of intangible assets		(152)	(152)	(304)
Total administrative expenses		(2,717)	(3,057)	(5,791)
Operating loss		(777)	(1,789)	(1,177)
Finance income		40	34	70
Finance costs		(69)	(83)	(172)
Loss before tax	3	(806)	(1,838)	(1,279)
Income tax		43	43	242
Loss for the period		(763)	(1,795)	(1,037)
Other comprehensive income		-	-	-
Total comprehensive loss for the period		(763)	(1,795)	(1,037)
Attributable to:
Equity holders of the parent
Retained loss		(763)	(1,795)	(1,037)
Loss per share
Basic and diluted loss per share (pence)	5	(0.40)	(1.50)	(0.70)

Consolidated statement of financial position

As at 30 June 2013

		Unaudited	Unaudited	Audited
		30 June 2013	30 June 2012	31 December 2012
	Note	£'000	£'000	£'000
ASSETS
Non-current assets
Goodwill		3,883	3,883	3,883
Intangible assets		799	1,103	951
Property, plant and equipment		15,483	15,779	15,453
Trade and other receivables		1,193	993	1,594
		21,358	21,758	21,881
Current assets
Inventories		334	382	232
Trade and other receivables		13,672	9,006	9,353
Taxation receivable		-	166	102
Cash and cash equivalents		1,739	1,101	3,674
		15,745	10,655	13,361
Total assets		37,103	32,413	35,242
LIABILITIES
Current liabilities
Trade and other payables		12,201	7,406	9,239
Current portion of long-term borrowings		324	386	385
Current portion of deferred consideration		271	200	265
Provisions		485	40	453
		13,281	8,032	10,342
Non-current liabilities
Long-term borrowings		1,667	1,734	1,791
Long-term deferred consideration		280	610	418
Deferred tax		264	404	307
Provisions		-	30	10
		2,211	2,778	2,526
Total liabilities		15,492	10,810	12,868
Net assets		21,611	21,603	22,374
EQUITY
Equity attributable to equity holders of the parent
Share capital	4	6,582	6,582	6,582
Share premium		39,214	39,201	39,214
Merger relief reserve		886	886	886
Other reserves		1,082	1,082	1,082
Retained losses		(26,153)	(26,148)	(25,390)
Total equity		21,611	21,603	22,374

Consolidated statement of changes in equity

For the six months ended 30 June 2013

	Share capital	Merger relief reserve	Share premium	Other reserves	Retained  losses	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 1 January 2012	5,872	886	38,045	1,061	(24,353)	21,511
Issue of share capital	710	-	-	-	-	710
Premium on issue of share capital	-	-	1,419	-	-	1,419
Issue costs	-	-	(263)	-	-	(263)
Recognition of share-based payments	-	-	-	21	-	21
Transactions with owners	710	-	1,156	21	-	1,887
Loss for the period and total comprehensive income	-	-	-	-	(1,795)	(1,795)
Balance at 30 June 2012	6,582	886	39,201	1,082	(26,148)	21,603
Issue costs	-	-	13	-	-	13
Transactions with owners	-	-	13	-	-	13
Profit for the period and total comprehensive income	-	-	-	-	758	758
Balance at 31 December 2012	6,582	886	39,214	1,082	(25,390)	22,374
Transactions with owners	-	-	-	-	-	-
Loss for the period and total comprehensive income	-	-	-	-	(763)	(763)
Balance at 30 June 2013	6,582	886	39,214	1,082	(26,153)	21,611

Consolidated statement of cash flows

For the six months ended 30 June 2013

		Unaudited	Unaudited	Audited
		6 months	6 months	Year
		ended	ended	ended
		30 June 2013	30 June 2012	31 December 2012
		£'000	£'000	£'000
Cash flows from operating activities
Loss after taxation		(763)	(1,795)	(1,037)
Adjustments for:
Depreciation		653	711	1,318
Amortisation of intangibles		152	152	304
Share based administrative expense		-	21	21
Taxation credit recognised in the statement of comprehensive income		(43)	(43)	(242)
Finance costs		69	83	172
Finance income		(40)	(34)	(70)
Profit on sale of property, plant and equipment		(32)	(33)	366
Increase in trade and other receivables		(3,918)	(1,670)	(2,618)
(Increase) / decrease in inventories		(102)	173	323
Increase in trade payables		2,962	929	2,762
Increase / (decrease) in provisions for other liabilities		22	(245)	148
Cash (used in) / from operations		(1,040)	(1,751)	1,447
Interest paid		(51)	(60)	(126)
Taxation		102	-	166
Net cash (used in) / from operating activities		(989)	(1,811)	1,487
Cash flows from investing activities
Acquisition of business - deferred consideration		(150)	(150)	(300)
Purchase of property, plant and equipment		(737)	(299)	(716)
Proceeds from sale of property, plant and equipment		86	38	46
Interest received		40	34	70
Net cash used in investing activities		(761)	(377)	(900)
Cash flows from financing activities
Proceeds from issue of share capital		-	1,866	1,879
Repayment of loan		(74)	(3)	(78)
Payment of finance lease liabilities		(111)	(131)	(271)
Net cash (used in) / from financing activities		(185)	1,732	1,530
Net (decrease)/increase in cash and cash equivalents		(1,935)	(456)	2,117
Cash and cash equivalents at beginning of period		3,674	1,557	1,557
Cash and cash equivalents at end of period		1,739	1,101	3,674

Notes to the interim report

1.   Nature of operations and general information

The principal activities of The TEG Group Plc and its subsidiaries ('the Group') are the design and production of Silo-cage composting plants and Anaerobic Digestion (AD) plants for sale to third party clients, and the design, build and operation of TEG owned waste recycling facilities.

The TEG Group Plc is the Group's ultimate parent company.  It is incorporated and domiciled in Great Britain.  The address of TEG Group Plc's registered office, which is also its principal place of business, is Westmarch House, 42 Eaton Avenue, Buckshaw Village, Chorley, PR7 7NA.  The TEG Group Plc's shares are listed on the Alternative Investment Market of the London Stock Exchange.

The TEG Group Plc's consolidated financial statements are presented in Pounds Sterling (£), which is also the functional currency of the parent company. 

These consolidated condensed interim financial statements have been approved for issue by the Board of Directors on 30 September 2013.

The figures for 31 December 2012 are an abridged version of the Group's full financial statements and, together with other financial information contained in this interim report, which is unaudited, do not constitute statutory financial statements of the Group as defined in Section 434 of the Companies Act 2006.  Statutory financial statements for the year ended 31 December 2012 have been filed with the Registrar of Companies for England and Wales and have been reported on by the Group's auditors. The report of the auditors was unqualified and did not contain a statement under section 498 (2) or Section 498 (3) of the Companies Act 2006.

2.   Basis of preparation

The Group's interim condensed consolidated financial statements are for the six months ended 30 June 2013 and have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS).  They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2012.

These condensed consolidated interim financial statements (the interim financial statements) have been prepared in accordance with the accounting policies adopted in the last annual financial statements for the year 31 December 2012.

The Directors have prepared cash flow forecasts for a 12 month period following the date of approval.  As part of the preparation of these forecasts, the Directors have considered the overall financial market at this time, the challenges experienced in obtaining timely project funding and the impact such delays have on the cash flow position of the Group.  The Directors have estimated the likely conversion of potential future contracts, the likely timetable for release of the retentions and recovery of costs due in respect of the Manchester contracts, the working capital required and the likely funding available to execute contracts.  Given these considerations, the Directors have adopted a prudent funding policy with regards to forecasts over the period.

Having secured the additional funding through shareholder loans, having considered the reasonable expectation that planned projects will be financed in a reasonable period of time and having made reasonable assumptions with regards to the release of retentions and recover of costs due in relation to the Manchester contract, the Directors consider the Company and Group have adequate resources to maintain operations over the 12 month period.  For this reason they continue to adopt the going concern basis in preparing the financial statements. 

The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these condensed consolidated interim financial statements.

3.   Business segments

For management purposes, the Group is organised into the following operating segments: Plant Operations and EPC Contracts.

All revenues from external customers and non-current assets are attributable to, and located in, Great Britain.

In identifying its operating segments, management follows the Group's service lines which represent the main products and services provided by the Group.  These operating segments are monitored and strategic decisions are made on the basis of segment operating results.

The EPC Contracts segment includes IVC and AD sales to third parties including the design, production and installation of plants for sale to third party clients.  The Plant Operations segment relates to facilities which are owned and operated by the Group.  These sites process waste received from customers and manage the compost produced by the facilities.  The Plant Operations segment is also responsible for the maintenance and operating contracts carried out for third parties.  The revenues and net result generated by each of the Group's operating segments are summarised as follows:

6 months to 30 June 2013

	Plant Operations	EPC Contracts	Other corporate expenses	Consolidated
	£'000	£'000	£'000	£'000
External revenue	4,943	7,963	-	12,906
Gross profit	1,074	866	-	1,940
Segment corporate expenses	(678)	(837)	(397)	(1,912)
EBITDA	396	29	(397)	28
Depreciation	(627)	(26)	-	(653)
Amortisation	(152)	-	-	(152)
Segment (loss)/profit	(383)	3	(397)	(777)
Share-based payment expense				-
Operating loss				(777)
Finance income				40
Finance costs				(69)
Loss before taxation				(806)

6 months to 30 June 2012

	Plant Operations	EPC Contracts	Other corporate expenses	Consolidated
	£'000	£'000	£'000	£'000
External revenue	4,622	995	-	5,617
Gross profit	1,115	153	-	1,268
Segment corporate expenses	(539)	(1,043)	(591)	(2,173)
EBITDA	576	(890)	(591)	(905)
Depreciation	(694)	-	(17)	(711)
Amortisation	(152)	-	-	(152)
Segment loss	(270)	(890)	(608)	(1,768)
Share-based payment expense				(21)
Operating loss				(1,789)
Finance income				34
Finance costs				(83)
Loss before taxation				(1,838)

Year to 31 December 2012

	Plant Operations	EPC Contracts		Other corporate expenses		Consolidated
	£'000	£'000		£'000		£'000
External revenue	10,381	12,037		-		22,418
Gross profit	2,611	2,003		-		4,614
Segment corporate expenses	(1,263)	(2,207)		(678)		(4,148)
EBITDA	1,348	(204)		(678)		466
Depreciation	(1,260)	(58)		-		(1,318)
Amortisation	(304)					(304)
Segment loss	(216)	(262)		(678)		(1,156)
Share-based payment expense						(21)
Operating loss						(1,177)
Finance income					70
Finance costs					(172)
Loss before taxation					(1,279)

4.   Share Capital

6 months to 30 June 2013 Ordinary shares of £0.01 each
	Number	£'000
At 1 January 2013 and 30 June 2013	188,428,648	1,884

Deferred Shares of £0.04 each	Number	£'000
At 1 January 2013 and 30 June 2013	117,439,360	4,698

  6 months to 30 June 2012

Ordinary Shares of £0.05 each	Number	£'000
At 1 January 2012	117,439,360	5,872
Capital reorganisation	(117,439,360)	(5,872)
At 30 June 2012	-	-
Ordinary Shares of £0.01 each
	Number	£'000
At 1 January 2012	-	-
Capital reorganisation	117,439,360	1,174
Issue of shares	70,989,288	710
At 30 June 2012	188,428,648	1,884
Deferred Shares of £0.04 each
	Number	£'000
At 1 January 2012	-	-
Capital reorganisation	117,439,360	4,698
At 30 June 2012	117,439,360	4,698

  Year to 31 December 2012

Ordinary Shares of £0.05 each	Number	£'000
At 1 January 2012	117,439,360	5,872
Capital reorganisation	(117,439,360)	(5,872)
At 31 December 2012	-	-
Ordinary Shares of £0.01 each
	Number	£'000
At 1 January 2012	-	-
Capital reorganisation	117,439,360	1,174
Issue of shares	70,989,288	710
At 31 December 2012	188,428,648	1,884
Deferred Shares of £0.04 each
	Number	£'000
At 1 January 2012	-	-
Capital reorganisation	117,439,360	4,698
At 31 December 2012	117,439,360	4,698

The deferred shares have no voting rights. The shares are not entitled to any dividend or other distribution or to participate in any way in the income or profits of the Group.

5.   Loss per share

	6 months	6 months	Year
	ended	ended	ended
	30 June 2013	30 June 2012	31 December 2012
	£'000	£'000	£'000
Loss for the financial year after tax	(763)	(1,795)	(1,037)
Adjustments to basic earnings
Exceptional costs	-	91	151
Underlying losses before exceptional costs	(763)	(1,704)	(886)
	Number	Number
Weighted average number of shares for the purposes of basic, diluted and underlying losses per share	188,428,648	119,439,058	148,278,969
	Pence	Pence	Pence
Basic loss per share	(0.40)	(1.50)	(0.70)
Diluted loss per share	(0.40)	(1.50)	(0.70)
Basic underlying loss per share before exceptional costs	(0.40)	(1.43)	(0.70)

Underlying losses per share has been disclosed to give a clear understanding of the Group's underlying trading performance.  It has been calculated using the underlying earnings figures above and the weighted average number of ordinary shares above.

Diluted losses per share is equal to the basic loss per share as the share options in issue at 30 June 2013 are anti-dilutive in respect of the diluted loss per share calculation and have therefore not been included.

 

END

 

 

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