Half-year Report

RNS Number : 5557U

Van Elle Holdings PLC

19 January 2017

 

Van Elle Holdings plc

("Van Elle" or the "Group")

Interim results for the six months ended 31 October 2016

Van Elle Holdings plc (the "Group"), the AIM listed geotechnical contractor offering a wide range of ground engineering techniques and services to customers in a variety of UK construction end markets, announces its unaudited interim results for the six months ended 31 October 2016:

Highlights

·      Successful admission to AIM on 26 October 2016

·      First half results in line with the Board's expectations

·      Group first half revenues increased by 7.6% to £43.1m (H1 2016: £40.1m)

·      Solid trading performance achieving a gross margin of 36.2% (H1 2016: 35.4%)

·      Investment in new rigs of £2.1m

·      Net IPO proceeds of £7.4m to further strengthen financial position

·      Maiden interim dividend of pence 0.85 pence per share

Jon Fenton, CEO, commented:

"We are pleased with our performance in the first half of this financial year. The Group continued to deliver operationally through the IPO process, reflecting the high quality divisional and central teams at Van Elle.

"Trading since the period end has been in line with our expectations, with a good level of work undertaken over the Christmas period. The second half is an important period for the Group, particularly the Specialist Piling division which has a number of contracts expected to be confirmed and commenced in the period. The anticipated outturn for the full year remains in line with the Board's expectations.

"The admission to AIM has given Van Elle an elevated platform from which to drive the business forward. We are excited by the opportunities for the business and the Board is focussed on executing against its strategy as we move forward."

19 January 2017

Van Elle Holdings plc	017 7358 0580
Jon Fenton, Chief Executive Officer
Paul Pearson, Chief Financial Officer
Instinctif Partners (Financial Public Relations)	020 7457 2020
Mark Garraway
James Gray
Rosie Driscoll
Peel Hunt LLP (Nominated Adviser and corporate broker)	020 7418 8900
Charles Batten
Mike Bell Justin Jones

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

Van Elle Holdings plc Interim Report to 31 October 2016

Board's Statement

Van Elle was admitted to trading on AIM on 26 October 2016, following a successful IPO process which provided the Group with a strong platform for future growth as well as raising net proceeds of £7.4m to enable the Group to accelerate its strategy. 

The Board is pleased to report that revenue in the six months to 31 October 2016 increased by 7.6% to £43.1m (H1 2016: £40.1m) with the gross margin for the period increasing to 36.2% (H1 2016: 35.4%). This trading performance reflects the delivery of a large number of contracts across a broad range of end markets, with the Group able to achieve good returns through its long-standing and effective operational model.

As anticipated, operating profit, before exceptional IPO costs of £1.5m, decreased by 8.1% to £4.9m (H1 2016: £5.3m) reflecting the sales mix within Specialist Piling and increased overhead investment made by the Group to ensure it had adequate resource, in both piling rigs and people, to deliver on the traditionally busier second half of the year.  After net finance costs of £0.2m (H1 2016: £0.2m), profit before tax and exceptional IPO costs decreased to £4.7m (H1 2016: £5.2m) with statutory profit before tax being £3.2m (H1 2016: £5.2m).

Van Elle saw no adverse impact for its services following the EU referendum in June 2016 and levels of demand in the Group's end markets remain consistent. In addition, during the first half, the Group secured its largest ever single contract for £5m in the Specialist Piling division which is currently being delivered.

Reported basic and diluted earnings per share were 3.2p.

Underlying operating cash inflow for the period, before movements in working capital and after IPO costs, was £5.6m (H1 2016: £6.8m). There was net investment in working capital in the first half of the year of £2.7m with net cash generated from operations of £2.6m.

Net capital expenditure in the period was £3.3m (H1 2016: £3.4m; H2 2016: 2.8m) which included the continued development of the Group's precast concrete manufacturing facilities and additional piling rigs to support activity in the busier second half of the year. This figure also includes  capex of £0.2m to ensure the existing rig fleet is capable of operating at maximum efficiency.

Including the net IPO proceeds of £7.4m, the Group's net debt as at 31 October 2016 was £4.1m, comprising cash of £8.8m net of HP and loan debt of £12.9m (H1 2016: £4.9m, of which £5.8m was cash, net of £10.7m HP and loan debt).

Net assets between the year end of 30 April 2016 and 31 October 2016 increased by £11.1m to £31.9m due to profit retained in the company of £2.2m and the impact of the share issue of £8.8m. 

 

Divisional review

General Piling

Revenue during the first half remained flat year on year at £21.2m. The division delivered a large number of contracts across a range of end markets with strong demand from new housing and the commercial sector in particular. Gross margins increased from 32% to 35% reflecting a positive mix of work, as well as efficiency benefits, with divisional operating profit improving by £0.1m to £2.6m (H1 2016: £2.5m). 

Specialist Piling

Revenue increased by 3.9% to £11.5m (H1 2016: £11.0m), driven by high levels of activity in the division's restricted access business offset by a lower level of demand for on-track rail work in the period.  The sales mix resulted in a reduction in gross margin from 49% to 46%.  Divisional operating profit in the period declined by £0.9m to £1.4m (H1 2016: £2.3m), in line with management's expectations, as a result of the mix impact of the lower level of sales activity in on-track rail and the investment in overhead.

Ground Engineering Services

Revenue increased by 2.6% to £4.9m (H1 2016: £4.7m), with gross margins improving from 34% to 41% as a result of an increased level of higher margin ground stabilisation work. Operating profit in the period remained flat at £0.3m due to the impact of increased overheads arising from the start up of operations in Scotland, which contributed £0.1m of revenue in the first half. 

Ground Engineering Products

Revenue increased by 84.0% to £5.6m (H1 2015: £3.0m), largely as a result of the continued success of the Group's Smartfoot® modular foundation product which grew by 57% year on year, contributing £1.6m of the increased turnover. Revenue from the production of pre-cast piles for internal use also increased as a result of greater demand from the General Piling division. Divisional operating profit grew to £0.5m (H1 2016: £0.1m), with the EBITA margin increasing to 8.9% (H1 2016: 2.4%) due to the operational gearing benefits of the increased revenue on the recently expanded production base. In addition, the division saw early demand for pre-cast products in Scotland, produced at the Group's new facility in Glasgow, exceed initial expectations.

Board Changes

As announced on 23 December 2016, Michael Ellis, co-founder of Van Elle, retired as Non-Executive Chairman with effect from 31 December 2016, having supported the Group through the successful IPO process. Adrian Barden has been appointed acting Non-Executive Chairman and the Board will consider in due course if another independent Non-Executive Director should be appointed. 

Dividend

The Board has declared a maiden interim dividend of 0.85 pence per share. The interim dividend will be paid on 28 February 2017 to shareholders on the register on 27 January 2017. The shares will trade ex-dividend on 26 January 2017.

 

Outlook and future prospects

Trading since the period end has been in line with the Board's expectations, with a good level of work undertaken over the Christmas period. The second half is an important period for the Group, particularly the Specialist Piling division which has a number of contracts expected to be confirmed and commenced in the period. The anticipated outturn for the full year remains in line with the Board's expectations.

 

Consolidated statement of comprehensive income
for 6 months ended 31 October 2016
		6 months to 31 October 2016 (unaudited)		6 months to 31 October 2015 (unaudited)		12 months to 30 April 2016 (audited)
	Note	£000		£000		£000
Revenue		43,126		40,063		84,199
Cost of Sales		(27,512)		(25,873)		(53,796)
Gross Profit		15,614		14,190		30,403
Administrative Expenses		(10,917)		(8,862)		(19,348)
Exceptional Costs	3.	(1,452)		-		-
Other Operating Income	6.	200
Operating Profit		3,445		5,328		11,055
Finance Expense		(219)		(167)		(344)
Finance Income		5		10		11
Profit before income tax		3,231		5,171		10,722
Income Tax Expense		(995)		(1,098)		(2,277)
Total comprehensive profit for the period		2,236		4,073		8,445
Earnings per share:
Basic		3.2p		5.8p		12.1p
Diluted		3.2p		5.8p		12.1p

 

Consolidated statement of financial position
for 6 months ended 31 October 2016
		31 October 2016 (unaudited)		31 October 2015 (unaudited)		30 April 2016 (audited)
		£000		£000		£000
ASSETS
Non-current assets
Intangible assets		2,291		2,179		2,291
Property, plant and equipment		28,830		21,469		25,120
		31,121		23,648		27,411
Current Assets
Inventories		1,704		1,065		1,611
Trade and other receivables		20,353		13,396		16,696
Cash and cash equivalents		8,806		5,819		3,601
		30,863		20,280		21,908
TOTAL ASSETS		61,984		43,928		49,319
LIABILITIES
Current Liabilities
Trade and other payables		15,084		12,972		14,314
Loans and borrowings		3,621		2,850		3,500
Current tax payable		1,111		1,658		1,224
		19,816		17,480		19,038
Non-current liabilities
Provisions		327		1,231		375
Deferred tax		712		596		712
Loans and borrowings		9,245		7,820		8,442
Total Liabilities		30,100		27,127		28,567
NET ASSETS		31,884		16,801		20,752
EQUITY AND LIABILITIES
Issued share capital		1,600		1,006		1,006
Share premium		8,633		-		-
Non-controlling interest		18		18		18
Retained earnings		21,633		15,777		19,728
TOTAL EQUITY		31,884		16,801		20,752

 

Consolidated statement of changes in equity

for 6 months ended October 2016

	Share capital	Share premium	Non-controlling interest	Retained earnings	Total equity
	£'000	£'000	£'000	£'000	£'000
Balance at 1 May 2015	1,006	-	18	11,704	12,728
Total comprehensive income	-	-	-	4,073	4,073
	_______	_______	_______	_______	_______
Balance at 31 October 2015	1,006	-	18	15,777	16,801
	_______	_______	_______	_______	_______
Total comprehensive income	-	-	-	4,372	4,372
Dividend payment	-	-	-	(421)	(421)
	_______	_______	_______	_______	_______
Balance at 30 April 2016	1,006	-	18	19,728	20,752
	_______	_______	_______	_______	_______
Total comprehensive income	-	-	-	2,236	2,236
Share redesignation and bonus issue	63	-	-	-	63
Issue of bonus shares	331	-	-	(331)	-
Issue of ordinary shares on IPO	200	9,800	-	-	10,000
Share issue costs	-	(1,167)	-	-	(1,167)
	_______	_______	_______	_______	_______
Balance at 31 October 2016	1,600	8,633	18	21,633	31,884
	_______	_______	_______	_______	_______

On 21 October 2016 the company carried out a bonus issue of shares allotted to existing shareholders for no consideration.  The bonus issue increased the issued share capital of the company by £331k.

On 21 October 2016 the company redesignated its 50p A ordinary shares, 50p B ordinary shares, 1p C ordinary shares and 15p D ordinary shares into a single class of 1p ordinary shares.  This process did not result in changes to the issued share capital of the company and was carried out in order to facilitate the Listing.

On 26 October 2016 the Company's shares were admitted to trading on the Alternative Investment Market of the London Stock Exchange (the "Listing"). In conjunction, the Company made an initial public offering ("IPO") of 10,000,000 new 1 pence ordinary shares at a price of 100 pence per ordinary share.

Costs relating directly to the new issue of shares to the amount of £1.2 million were deducted from the share premium account.    Other costs attributable to the Listing were expensed.

 

Consolidated cash flow statement For 6 months ended 31 October 2016	6 months to 31 October 2016 (unaudited)		6 months to 31 October 2015 (unaudited)		12 months to 30 April 2016 (audited)
Cash from operating activities	£000		£000		£000
Profit for the year	2,236		4,073		8,445
Adjusted for;
Depreciation	2,141		1,508		3,333
Finance income	(5)		(10)		(11)
Finance expense	219		167		344
Gain on sale of property, plant and equipment	-		-		(53)
Income tax expense	995		1,098		2,277
	5,586		6,836		14,335
(Increase)/decrease in inventories	(93)		39		(507)
(Increase)/decrease in trade and other receivables	(3,657)		3,740		440
Increase/(decrease) in trade and other payables	833		(2,769)		(1,919)
Decrease in provisions	(48)		(75)		(931)
Cash generated from operations	2,621		7,771		11,418
Interest received	5		10		11
Interest paid on finance leases and loans	(219)		(167)		(344)
Income taxes paid	(1,108)		(714)		(1,748)
Net cash flows from operating activities	1,299		6,900		9,337
Cash flows from investing activities
Purchase of property, plant and equipment	(3,349)		(3,412)		(6,162)
Disposal of property, plant and equipment	-		-		97
Purchases of intangibles	-		-		(112)
Net cash flows from investing activities	(3,349)		(3,412)		(6,177)
Cash flows from financing activities:
Proceeds from bank borrowings	-		1,425		1,425
Repayment of bank borrowings	(75)		(59)		-
Proceeds from Invest to Grow loan	260		-		-
Repayments of Invest to Grow loan	(8)		-		-
Issue of shares net of issue costs	8,833		-		-
Repayment of invoice discounting facility	-		-		(4)
Payments to finance lease creditors	(1,755)		(1,379)		(2,903)
Dividends paid to the holders of the parent	-		-		(421)
Net cash flows from/(used in) financing activities	7,255		(13)		(1,903)
Net (decrease)/increase in cash and cash equivalents	5,205		3,475		1,257
Cash and cash equivalents beginning of periods	3,601		2,344		2,344
Cash and cash equivalents at end of periods	8,806		5,819		3,601

 

1.   Notes to the Interim Report

Basis of preparation

The unaudited interim consolidated statements of Van Elle Holdings plc are for the six months ended 31 October 2016 and do not comprise statutory accounts within the meaning of S.435 of the Companies Act 2006.  These consolidated financial statements have been prepared in compliance with the recognition and measurement requirements of International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRSs) as adopted by the EU.  They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the Group's annual report.  These consolidated financial statements have been prepared in accordance with the accounting policies that are expected to be applied in the report and accounts for the year ending 30 April 2017.
 

The consolidated financial statements are presented in Sterling, which is also the Group's functional currency.  Amounts are rounded to the nearest thousand, unless otherwise stated.

Comparatives

The comparative figures for the year ended 30 April 2016 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 statements 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.

Accounting policies

The accounting policies adopted are consistent with those described in the annual financial statements for the year ended 30 April 2016 and that will be adopted for the year ended 30 April 2017.  There have been no significant changes in the basis upon which estimates have been determined, compared to those applied at 30 April 2016 and no change in estimate has had a material effect on the current period.

Share options

Share options were granted on 26 October 2016 and have a 3 year vesting period and therefore the fair value charge is not material for the period and is not included in these interims.

 

2.   Segmental Reporting

The Group has four main divisions:

·      General Piling division - This division delivers drilled, augered, bored and driven piling solutions to customers in a broad range of end markets. Operating principally on open site construction projects, the division is, at any one time, engaged on jobs ranging from several days to several months duration.

·      Specialist Piling division - This division provides piling solutions in environments with access or operational constraints which require the use of specialist piling rigs and techniques. Through Van Elle Rail, the division also operates in "on-track" rail environments for which it retains a fleet of specialist road/rail vehicles.

·      Ground Engineering Services division - This division offers temporary and permanent solutions for ground stability and support as well as a broad range of geotechnical services. The Group's ground stabilisation offering includes ground anchors, soil nails, grouting techniques and mine consolidation. Its geotechnical solutions include general site investigation work, pile testing and geothermal bore-holes. These solutions can be implemented in open site, restricted access and on-track rail environments.

·      Ground Engineering Products division - This division designs and manufactures precast piles, including both traditional long piles and segmental VeMech® piles for the Group's General Piling division. The Group also designs, manufactures and installs a modular precast foundation system targeted at the housebuilding market, under its patented Smartfoot® trademark. Van Elle's principal manufacturing operations are located at the Group's 16 acre site in Kirkby-in-Ashfield in Nottinghamshire which is ISO9001, 14001 and 18001 accredited (as is the Group as a whole).

The Group's reportable segments, as reported to the Chief Executive, are strategic business units that offer different techniques and services. They are managed separately because each business requires different technology and marketing strategies.  The segments are sub-divided into operational units based around the piling techniques that they deliver.

The Group evaluates segmental performance on the basis of profit or loss from operations calculated in accordance with IFRS but excluding non-recurring losses, such as goodwill impairment, and the effects of share-based payments.  Traditionally the second half of the year is stronger in turnover and operating performance than the first half of the year with work undertaken by the Specialist Piling Division undertaken during statutory holiday periods over Christmas and Easter. 

Inter-segment sales are priced along the same lines as sales to external customers, with an appropriate discount being applied to encourage use of group resources at a rate acceptable to local tax authorities.

Segment assets exclude tax assets and assets used primarily for corporate purposes. Segment liabilities exclude tax liabilities and defined benefit liabilities.

Loans and borrowings, insurances and head office central services' costs are allocated to the segments based on levels of turnover.

 

Six months ended 31 October 2016

			Ground	Ground
	General	Specialist	Engineering	Engineering	Head
	Piling	Piling	Services	Products	Office	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Revenue
Total Revenue	22,349	11,451	4,866	6,922	-	45,588
Inter-segmental revenue	(1,144)	-	-	(1,318)	-	(2,462)
Total revenue from external customers	21,205	11,451	4,866	5,604	-	43,126
	_______	_______	_______	_______	_______	_______
Depreciation	765	789	243	88	256	2,141
	_______	_______	_______	_______	_______	_______
Segment profit before tax	2,643	1,426	330	498	(1,452)	3,445
	_______	_______	_______	_______	_______
Finance expense (net)						(214)
						_______
Group profit before tax						3,231
						_______
Head office loss reflects exceptional costs relating to the IPO
Six Six months ended 31 October 2015
		Ground	Ground
	General	Specialist	Engineering	Engineering	Head
	Piling	Piling	Services	Products	Office	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Revenue
Total Revenue	21,254	11,020	4,744	4,005	-	41,023
Inter-segmental revenue	-	-	-	(960)	-	(960)
	_______	_______	_______	_______	_______	_______
Total revenue from external customers	21,254	11,020	4,744	3,045	-	40,063
	_______	_______	_______	_______	_______	_______
Depreciation	564	522	183	61	178	1,508
	_______	_______	_______	_______	_______	_______
Segment profit before tax	2,546	2,362	346	74	--	5,328
	_______	_______	_______	_______	_______
Finance expense (net)						(157)
						_______
Group profit before tax						5,171
						_______

 

Twelve months ended 30 April 2016			Ground	Ground
	General	Specialist	Engineering	Engineering	Head
	Piling	Piling	Services	Products	Office	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Revenue
Total Revenue	42,707	25,840	10,151	8,358	37	87,093
Inter-segmental revenue	(596)	-	-	(2,261)	(37)	(2,894)
	_______	_______	_______	_______	_______	_______
Total revenue from external customers	42,111	25,840	10,151	6,097	-	84,199
	_______	_______	_______	_______	_______	_______
Depreciation	1,421	1,316	435	161	-	3,333
	_______	_______	_______	_______	_______	_______
Segment profit before tax	4,735	5,879	456	(15)	-	11,055
	_______	_______	_______	_______	_______
Finance expense						(333)
						_______
Group profit before tax						10,722
						_______

			Ground	Ground
October 2016	General	Specialist	Engineering	Engineering	Head
	Piling	Piling	Services	Products	Office	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Additions to non-current assets	1,442	2,005	925	409	1,117	5,898
	_______	_______	_______	______	_______	_______
Property, plant & equipment	8,559	9,584	2,119	1,263	7,305	28,830
Intangible assets	-	-	-	-	2,291	2,291
Inventories	284	198	57	1,165	-	1,704
Trade and other receivables	-	-	-	-	20,353	20,353
Cash and cash equivalents	-	-	-	-	8,806	8,806
	_______	_______	_______	_______	______	_______
Total assets	8,843	9,782	2,176	2,428	38,755	61,984
	_______	_______	_______	_______	______	_______
Loans and borrowings	-	-	-	-	12,866	12,866
Trade and other payables	-	-	-	-	16,195	16,195
Provisions and deferred tax	-	-	-	-	1,039	1,039
	_______	_______	_______	_______	______	_______
Total liabilities	-	-	-	-	30,100	30,100
	_______	_______	_______	_______	_______	_______

			Ground	Ground
October 2015	General	Specialist	Engineering	Engineering	Head
	Piling	Piling	Services	Products	Office	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Additions to non-current assets	599	1,760	228	138	1,913	4,638
	_______	_______	_______	______	______	_______
Property, plant & equipment	6,678	7,105	1,520	740	5,426	21,469
Intangible assets	-	-	-	-	2,179	2,179
Inventories	253	120	137	555	-	1,065
Trade and other receivables	-	-	-	-	13,396	13,396
Cash and cash equivalents	-	-	-	-	5,819	5,819
	_______	_______	_______	_______	______	_______
Total assets	6,931	7,225	1,657	1,295	26,820	43,928
	_______	_______	_______	_______	______	_______
Loans and borrowings	-	-	-	-	10,670	10,670
Trade and other payables	-	-	-	-	14,630	14,630
Provisions and deferred tax	-	-	-	-	1,827	1,827
	_______	_______	_______	_______	______	_______
Total liabilities	-	-	-	-	27,127	27,127
	_______	_______	_______	_______	_______	_______

 

			Ground	Ground
April 2016	General	Specialist	Engineering	Engineering	Head
	Piling	Piling	Services	Products	Office	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Additions to non-current assets	2,534	4,280	359	390	3,843	11,406
	_______	_______	_______	______	______	_______
Property, plant & equipment	7,949	8,372	1,444	907	6,448	25,120
Intangible assets	-	-	-	-	2,291	2,291
Inventories	338	217	82	974	-	1,611
Trade and other receivables	-	-	-	-	16,696	16,696
Cash and cash equivalents	-	-	-	-	3,601	3,601
	_______	_______	_______	_______	______	_______
Total assets	8,287	8,589	1,526	1,881	29,036	49,319
	_______	_______	_______	_______	______	_______
Loans and borrowings	-	-	-	-	11,942	11,942
Trade and other payables	-	-	-	-	15,538	15,538
Provisions and deferred tax	-	-	-	-	1,087	1,087
	_______	_______	_______	_______	______	_______
Total liabilities	-	-	-	-	28,567	28,567
	_______	_______	_______	_______	_______	_______

3.         Exceptional Costs

Exceptional costs of £1,452,000 incurred during the six month period ended October 2016 relate to the initial public offering of the company.  Costs relating directly to the new issue of shares to the amount of £1,167,000 were deducted from the share premium account.  Attributable IPO costs were allocated between the share premium account and profit and loss account based in proportion to the number of primary and secondary shares traded on Admission.  Other costs attributable to the Listing were expensed.

4.         Capital Commitments

	October 2016	October 2015	April    2016
	£'000	£'000	£'000
Contracted but not provided for	3,889	1,006	1,490
	_______	_______	_______

Capital commitments represents the total purchase value of new Property, Plant and Equipment which the company has either paid a deposit or placed an order for as at the period end dates, and for which delivery is due after the period ends. 

 

5.         Contingent Liability

The company has been notified of a possible liability related to payments allegedly due to a former employee, pursuant to historic employment arrangements. This matter has only recently come to the Board's attention and it is not possible, at the date of approval of the interim statement, to establish whether an actual liability exists nor, in the case that it does, the potential financial impact, if any, that may arise. The company is actively investigating the matter, including as to whether any other individuals may bring forward a similar claim and accordingly is not in a position to disclose further information at this time.

6.         Related Party Transactions

Pursuant to an agreement with the Company, Michael Hughes, who is an employee, settled an insurance policy excess of £200k. This was in respect of a claim on a contract for which there is already an insurance provision for the policy excess, and the claim is expected to be settled within the policy cover level.  This amount is presented within other operating income.

7.         Earnings per Share

		6 months to 31 October 2016		6 months to 31 October2015		12 months to30 April 2016
Weighted average number of shares and dilutive shares		70,372,665		70,000,000		70,000,000
Earnings per share:
Basic		3.2p		5.8p		12.1p
Diluted		3.2p		5.8p		12.1p

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 period.  In accordance with IAS 33 the weighted average number of shares in issue during the period has been retrospectively adjusted for the proportionate change in the number of the shares outstanding as a result of the bonus issue and share splits in the period as if the event had occurred at the beginning of the earliest period presented. The weighted average of new shares issued in the period have been considered in the current period and have not been retrospectively adjusted.

Share options with a 3 year vesting period were issued on 26 October 2016, 5 days prior to the end of the period.  As a result the weighted average dilutive effect of the share options is not material and does not change the reported basic earnings per share.

 

END

 

 

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