Interim Report

RNS Number : 0030B

Driver Group plc

04 June 2019

 

4 June 2019

DRIVER GROUP PLC

("Driver" or "the Group")

Interim Report

For the six months ended 31 March 2019

Key Points (for the six months ended 31 March 2019

	6 months ended 31 March 2019 £000 Unaudited	6 months ended 31 March 2018 £000 Unaudited	Change £000
Revenue	29,711	31,694	(1,983)
Gross Profit	6,695	8,887	(2,192)
Gross Profit %	23%	28%	(5%)
Profit before tax Add: Share-based payment (credit)/charge Underlying* profit before tax	1,005 (243) 762	1,726 379 2,105	(721) (622) (1,343)
Underlying* profit before tax %	3%	7%	(4%)
Underlying* earnings per share	1.1p	3.4p	(2.3p)
Net cash**	5,011	838	4,173

·           Revenue down by 6% to £29.7m (2018: £31.7m)

·           Gross profit at 23% a £2.2m decrease to £6.7m (2018: £8.9m)

·           Underlying* profit before tax at £0.8m (2018: £2.1m) resulting in an underlying* profit before tax margin of 3% (2018: 7%)

·           Net cash increase year on year of £4.2m to £5.0m (2018: £0.8m)

·           Fee earner headcount decreased by 32 to 355 because of reduced revenues in both APAC and Middle East.

·           Overall utilisation rates of 76.1% (2018: 81.6%)

·           Europe & Americas (EuAm) reported underlying* profit before tax for the period of £2.0m (2018: £1.4m) with utilisation rates at 70.3% (2018: 73.6%)

·           Middle East (ME) reported underlying* profit before tax for the period of £0.4m (2018: £1.3m) with utilisation rates at 80.9% (2018: 83.5%)

·           Asia Pacific (APAC) reported underlying* loss before tax for the period of £0.6m (£2018: profit £0.6m) with utilisation rates at 76.1% (2018: 91.6%)

*     Underlying figures are stated before the share-based payment costs.

**    Net cash consists of cash and cash equivalents, bank loans and finance leases.

Steve Norris, Chairman of Driver Group, said:

"Although the first half of 2019 has seen lower activity than expected in some markets we have reacted quickly to re-align the cost base of underperforming businesses in the first half and with enquiry rates at high levels the Group is well placed to record good progress for the remainder of the current financial year."

Enquiries:

Driver Group plc                                          Gordon Wilkinson (CEO) David Kilgour (CFO)	[phone]
N+1 Singer - Nominated Adviser Sandy Fraser	[phone]
Acuitas Communications- Financial PR Simon Nayyar Fraser Schurer-Lewis	[phone] [e-mail] [e-mail]

INTRODUCTION

The Group's core business is in claims and dispute management and expert witness work. We are fortunate to count many industry-leading proponents among our firm's complement which gives us strong client relationships and a competitive edge whilst having a reputation for delivering a world class service. These services are offered in all three of the Group's regions being Europe & Americas (EuAm), Middle East (ME) and Asia Pacific (APAC). The Group also has a highly respected project services business in the UK.

The six months to 31 March 2019 has been a mixed period for the Group following the significant progress in the year to 30 September 2018. The EuAm region has remained strong and has performed well during the first six months of the year. I am pleased to report that revenue and profit have all increased in the period to March 2019 which is a testament to the strong management team we have in place within the region. However, for our businesses in ME and APAC it has been a time when a number of larger commissions have concluded coinciding with the delayed start of new commissions. The consequence has been that activity levels in both these regions has been lower than expected which has impacted the overall Group performance for the period. I have frequently pointed out that our visibility of new business extends to no more than six to eight weeks and we are clear that this lower than expected revenue is not a reflection of any systemic failure in our business and is more a matter of timing. That said, we have taken steps to reduce the Group's cost base in these regions to ensure that our breakeven point is lower than before and the benefit of this will be felt in the second half of the financial year.

FINANCIAL RESULTS

Group revenue for the first half of the financial year was £29.7m, a decrease of 6% on the first half of 2018 (£31.7m). Revenue in EuAm increased by 4% to £14.9m (2018: £14.3m), offsetting this was a reduction in revenue for both ME and APAC. ME reported a decrease of 14% to £10.3m (2018: £12.0m) with APAC decreasing by 17% to £4.5m (2018: £5.4m). As a result of the reduction in revenue, gross profit has reduced by £2.2m to £6.7m (2018: £8.9m). Administrative expenses decreased by £1.4m to £5.7m (2018: £7.1m). £0.6m of the reduction relates to the movement in the share based payment charge.

The Group reported an underlying* profit before tax of £0.8m (2018: £2.1m). The operating profit amounted to £1.1m (2018: £1.8m) and the pre-tax profit for the period was £1.0m (2018: £1.7m).

The Group's effective tax rate is 17% reflecting the geographic make-up of the Group, with UK profits utilising brought forward losses from prior years and with profits in the current period in overseas operations at local tax rates where there are no brought forward tax losses. Underlying* profit per share was 1.1p (2018: 3.4p).  After share-based payment charges the profit per share was 1.5p (2018: 2.7p).

The Group was in a net cash** position of £5.0m at 31 March 2019 compared to £6.9m at 30 September 2018 and £0.8m at 31 March 2018.

Net cash outflow from operations was £0.8m (2018: £1.3m cash inflow) during the first six months, including a net inflow from a decrease in trade and other receivables of £0.5m  (2018: £2.1m cash outflow)  and a net cash outflow from a decrease in trade and other payables of £2.4m (2018: £0.9m inflow). Tax paid totalled £0.5m (2018: £0.1m) and the acquisition of fixed assets absorbed £0.1m (2018: £0.2m). A further cash outflow during the period was the purchase of treasury shares at £0.5m (2018: £nil).

DIVIDEND

The Board was pleased to announce the reinstatement of a dividend payment in the 30 September 2018 results of 0.5p per share which was paid to shareholders in April 2019. Reflecting our confidence in the medium term prospects for the Group and the inherently cash generative nature of our business, the Board recommends the payment of an interim dividend of 0.5p per share for 2019 (2018: £nil).

TRADING PERFORMANCE 

During the six-month period to 31 March 2019 the overall headcount reduced by 5% to 435. The decrease was attributable to both a reduction in administrative staff and a reduction of underperforming fee earning staff in both the ME and APAC regions to ensure our cost base is aligned with the lower activity levels in those markets. Overall staff utilisation*** levels reduced during the period to 76.1% (2018: 81.6%).

The EuAm region delivered revenue growth of 4% to £14.9m and profit growth of 44.8% to £2.0m. Within this the Driver Trett UK business has continued its strong performance from 2018 and mainland Europe performance was excellent with revenue growth of £0.7m to £3.6m resulting in an increase in profit to £0.5m (2018: £0.1m). The UK Driver Project Services business revenue decreased by 9% to £3.0m following the conclusion of a major contract but managed to generate a profit of £0.3m.

Revenue for the ME region decreased by £1.7m to £10.3m. A significant proportion of this decrease (£1.4m) related to Kuwait where a number of significant commissions reached completion and the general manager decided to retire during the period. ME regional profit decreased by £0.9m to £0.4m due to overall lower revenues. Underperformance in UAE and Kuwait during the first half year has been addressed by actions taken to reduce the cost base and this should improve the business contribution in the second half of the year.  There has been a good performance in Oman during the first half year with revenue increasing by £0.2m and Qatar continues to perform well.

In the APAC region revenues decreased by £0.9m to £4.5m with the decrease relating to Singapore and Malaysia. Revenue in Singapore has been impacted due to the completion of a number of significant commissions and delays in new commissions. The result for the region was a disappointing loss of £0.6m (2018: profit £0.6m). Action has been taken to significantly reduce the cost base within the region, the benefit of which should be seen in the second half. This resulted in non-recurring costs of £0.2m being expensed in the period up to the half year.

OUTLOOK

Although the first half of 2019 has seen lower activity than expected in some markets we have reacted quickly to re-align the cost base of underperforming businesses in the first half and with enquiry rates at high levels the Group is well placed to record good progress for the remainder of the current financial year. As a result, whilst activity levels during the fourth quarter will be critical to the outcome for the year as a whole, we currently expect to deliver underlying* profit before taxation for the year broadly in line with the guidance set out in our March trading update. The growth of the Diales expert witness and advisory brand continues to be a key objective for the Group across all regions.

On behalf of our senior leadership team of Gordon Wilkinson, Mark Wheeler and David Kilgour, I would particularly like to thank every one of our staff wherever they are in the world for their continued hard work and support for the Group. I should also like to thank all our shareholders, established and new, for their continuing support. The Group will continue to do its utmost to repay the confidence you have shown in the business.

Steven Norris

Non-Executive Chairman

3 June 2019

*     Underlying figures are stated before the share-based payment costs.

**    Net cash consists of cash and cash equivalents, bank loans and finance leases.

***  Utilisation % is calculated by dividing the total hours billed by the total working hours available for chargeable staff                    

Consolidated Income Statement

Interim report for the six months ended 31 March 2019

	6 months ended 31 March 2019 £000 Unaudited	6 months ended 31 March 2018 £000 Unaudited	Year ended 30 September 2018 £000 Audited
REVENUE Cost of sales	29,711 (23,016)	31,694 (22,807)	62,615 (46,338)
GROSS PROFIT Administrative expenses Other operating income	6,695 (5,722) 82	8,887 (7,146) 69	16,277 (13,546) 139
Underlying* operating profit Share-based payment credit/(charge) and associated costs	812 243	2,189 (379)	3,970 (1,100)
OPERATING PROFIT Finance income Finance costs	1,055 20 (70)	1,810 2 (86)	2,870 17 (148)
PROFIT BEFORE TAXATION Tax expense (note 2)	1,005 (170)	1,726 (297)	2,739 (567)
PROFIT FOR THE PERIOD Profit attributable to non-controlling interests Profit attributable to equity shareholders of the parent	835 3 832	1,429 - 1,429	2,172 3 2,169
	835	1,429	2,172
Basic earnings per share attributable to equity shareholders of the parent (pence) Diluted earnings per share attributable to equity shareholders of the parent (pence)	1.5p 1.5p	2.7p 2.6p	4.0p 3.8p

* Underlying figures are stated before the share-based payment costs.

Consolidated Statement of Comprehensive Income

Interim report for the six months ended 31 March 2019

	6 months ended 31 March 2019 £000 Unaudited	6 months ended 31 March 2018 £000 Unaudited	Year ended 30 September 2018 £000 Audited
PROFIT FOR THE PERIOD	835	1,429	2,172
Other comprehensive income: Items that could subsequently be reclassified to the Income Statement: Exchange differences on translating foreign operations	29	12	59
Other comprehensive income for the year net of tax	29	12	59
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	864	1,441	2,231
Total comprehensive income attributable to: Owners of the parent Non-controlling interest	861 3	1,441 -	2,228 3
	864	1,441	2,231

Consolidated Statement of Financial Position

Interim report for the six months ended 31 March 2019

	6 months ended 31 March 2019 £000 Unaudited	6 months ended 31 March 2018 £000 Unaudited	Year ended 30 September 2018 £000 Audited
NON-CURRENT ASSETS Goodwill Property, plant and equipment Deferred tax asset	2,969 636 98	2,969 810 64	2,969 765 69
	3,703	3,843	3,803
CURRENT ASSETS Trade and other receivables Derivative financial asset Cash and cash equivalents Asset held for sale	18,956 29 7,394 -	20,976  390  5,814  1,614	20,445 42 10,007 -
	26,379	28,794	30,494
TOTAL ASSETS	30,082	32,637	34,297
CURRENT LIABLITIES Borrowings Trade and other payables Derivative financial liability Current tax payable	(2,382) (9,076) (101) (116)	(662) (9,223) - (354)	(646) (10,623) (639) (456)
	(11,675)	(10,239)	(12,364)
NON-CURRENT LIABILITIES Borrowings Deferred tax liabilities	- -	(4,314) (127)	(2,460) -
	-	(4,441)	(2,460)
TOTAL LIABILITIES	(11,675)	(14,680)	(14,824)
NET ASSETS	18,407	17,957	19,473
SHAREHOLDERS' EQUITY Share capital Share premium Merger reserve Currency reserve Capital redemption reserve Treasury shares Retained earnings Own shares	215 11,497 1,055 (371) 18 (486) 6,473 (3)	215 11,475 1,055 (447) 18 - 5,745 (107)	215 11,475 1,055 (400) 18 - 7,107 (3)
TOTAL SHAREHOLDERS' EQUITY	18,398	17,954	19,467
NON-CONTROLLING INTEREST	9	3	6
TOTAL EQUITY	18,407	17,957	19,473

Consolidated Cashflow Statement

Interim report for the six months ended 31 March 2019

	6 months ended 31 March 2019 £000 Unaudited	6 months ended 31 March 2018 £000 Unaudited	Year ended 30 September 2018 £000 Audited
CASH FLOWS FROM OPERATING ACTIVITIES Profit for the year	835	1,429	2,172
Adjustments for: Depreciation Exchange adjustments Profit on disposal of property, plant & equipment Finance income Finance expense Tax expense Equity settled share-based payment charge	227   27   -    (20)  70   170   (243)	296 33 - (2) 86 297 379	551 (46) (52) (17) 148 567 1,100
OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL AND PROVISIONS Decrease/(increase) in trade and other receivables (Decrease)/increase in trade and other payables	1,066 549 (2,415)	2,518 (2,051) 862	4,423 (1,291) 2,939
CASH (USED)/GENERATED IN OPERATIONS Tax paid	(800) (450)	1,329 (115)	6,071 (385)
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES	(1,250)	1,214	5,686
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received Acquisition of property, plant and equipment Proceeds on sale and operating leaseback of property, plant and equipment Disposal of subsidiary net of cash acquired	20     (98)   -   -	2 (156) - 75	17 (350) 1,650 195
NET CASH (OUTFLOW)/INFLOW FROM INVESTING ACTIVITIES	(78)	(79)	1,512
CASH FLOWS FROM FINANCING ACTIVITIES Interest paid Repayment of borrowings Repurchase of share options Proceeds from issue of new shares Purchase of Treasury shares	(70)    (724)  -   22   (486)	(86) (134) - - -	(148) (2,004) (17) - -
NET CASH OUTFLOW FROM FINANCING ACTIVITIES Net (decrease)/increase in cash and cash equivalents Effect of foreign exchange on cash and cash equivalents Cash and cash equivalents at start of period	(1,258)   (2,586)   (27)  10,007	(220) 915 (33) 4,932	(2,169) 5,029 46 4,932
CASH AND CASH EQUIVALENTS AT END OF PERIOD	7,394	5,814	10,007

Consolidated Statement of Changes of Equity

Interim Report for the six months ended 31 March 2019

For the six months ended 31 March 2019 (Unaudited):

	Share capital £000	Share premium £000	Treasury shares £000	Merger reserve £000	Other reserves(2) £000	Retained earnings £000	Own shares £000	Total(1) £000	Non- controlling interest £000	Total Equity £000
CLOSING BALANCE AT 30 SEPTEMBER 2018	215	11,475	-	1,055	(382)	7,107	(3)	19,467	6	19,473
Accounting policy change - IFRS 9	-	-	-	-	-	(953)	-	(953)	-	(953)
OPENING BALANCE AT 1 OCTOBER  2018	215	11,475	-	1,055	(382)	6,154	(3)	18,514	6	18,520
Profit for the period	-	-	-	-	-	832	-	832	3	835
Other comprehensive income for the period	-	-	-	-	29	-	-	29	-	29
Total comprehensive income for the period	-	-	-	-	29	832	-	861	3	864
Contributions by and distributions to owners
Dividend	-	-	-	-	-	(270)	-	(270)	-	(270)
Share-based payment credit and associated costs	-	-	-	-	-	(243)	-	(243)	-	(243)
Issue of new shares	-	22	-	-	-	-	-	22	-	22
Purchase of Treasury shares	-	-	(486)	-	-	-	-	(486)	-	(486)
Total contributions by and distributions to owners	-	22	(486)	-	-	513	-	(977)	3	(977)
CLOSING BALANCE AT 31 MARCH 2019	215	11,497	(486)	1,055	(353)	6,473	(3)	18,398	9	18,407

For the six months ended 31 March 2018 (Unaudited):

	Share capital £000	Share premium £000	Treasury shares £000	Merger reserve £000	Other reserves(2) £000	Retained earnings £000	Own shares £000	Total(1) £000	Non- controlling interest £000	Total Equity £000
OPENING BALANCE AT 1 OCTOBER  2017	215	11,475	-	1,055	(441)	3,937	(107)	16,134	3	16,137
Profit for the period	-	-	-	-	-	1,429	-	1,429	-	1,429
Other comprehensive income for the period	-	-	-	-	12	-	-	12	-	12
Total comprehensive income for the period	-	-	-	-	12	1,429	-	1,441	-	1,441
Contributions by and distributions to owners
Share-based payment charge and associated costs	-	-	-	-	-	379	-	379	-	379
Total contributions by and distributions to owners	-	-	-	-	-	379	-	379	-	379
CLOSING BALANCE AT 31 MARCH 2018	215	11,475	-	1,055	(429)	5,745	(107)	17,954	3	17,957

Consolidated Statement of Changes of Equity (continued)

Interim Report for the six months ended 31 March 2019

For the year ended 30 September 2018 (Audited):

	Share capital £000	Share premium £000	Treasury shares £000	Merger reserve £000	Other reserves(2) £000	Retained earnings £000	Own shares £000	Total(1) £000	Non- controlling interest £000	Total Equity £000
OPENING BALANCE AT 1 OCTOBER  2017	215	11,475	-	1,055	(441)	3,937	(107)	16,134	3	16,137
Profit for the year	-	-	-	-	-	2,169	-	2,169	3	2,172
Other comprehensive income for the year	-	-	-	-	59	-	-	59	-	59
Total comprehensive income for the year	-	-	-	-	59	2,169	-	2,228	3	2,231
Contributions by and distributions to owners
Share-based payment charge and associated costs	-	-	-	-	-	1,100	-	1,100	-	1,100
Transfer of reserves(3)	-	-	-	-	-	(82)	82	-	-	-
Proceeds from sale of own shares	-	-	-	-	-	-	22	22	-	22
Repurchase of share options	-	-	-	-	-	(17)	-	(17)	-	(17)
Total contributions by and distributions to owners	-	-	-	-	-	1,001	104	1,105	-	1,105
CLOSING BALANCE AT 30 SEPTEMBER 2018	215	11,475	-	1,055	(382)	7,107	(3)	19,467	6	19,473

(1)       Total equity attributable to the equity holders of the Parent

(2)  'Other reserves' combines the currency reserve and capital redemption reserve. The movement in the current and prior year relates to the translation of foreign currency equity balances and foreign currency non-monetary items.

(3)   The shortfall in the market value of the shares held by the EBT and the outstanding loan is transferred from own shares to retained earnings.

1         BASIS OF PREPARATION

The consolidated interim financial information has been prepared in accordance with the accounting policies that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2019. The Group has adopted the new IFRS 9 and IFRS 15 accounting standards from 1 October 2018.

NEW STANDARDS ADOPTED

IFRS 15 Revenue from Contracts with Customers: replaces IAS 18 Revenue and IAS 11 Construction contracts. The standard establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. Revenue is recognised when a customer obtains control of a service and thus, has the ability, to direct the use and obtain the benefits from the goods or service. While this represents significant new guidance, the implementation of this new guidance has not impacted the timing or amount of revenue recognised by the Group. Much of the Group's revenue is based upon defined hourly or daily charge out rates and the work carried out is specific to the customer and project in question. There is a continual flow of benefits to the customer from the services performed and the Group does not operate on a stage payment or key milestone basis. For fixed fee projects, the fee is determined by an estimated amount of hours x the standard rate for the required level of staff for the project. Any expected under recovery from a project's original costing are recognised over the life of the project. The principle of the continual transfer of benefit to the customer remains whether a project is a fixed or variable fee. Revenue recognition is based on a contract by contract basis and the new standard has not significantly affected business practice and management judgements in respect of revenue recognition.

IFRS 9 Financial Instruments: replaces IAS 39 Financial Instruments and covers 3 different areas of potential impact. Part 1 contains new requirements for the classification and measurement of financial assets and liabilities. Part 2 relates to the impairment of financial assets and requires the calculation of impairment on an expected loss basis rather than the current incurred loss basis. Part 3 relates to less stringent requirements for general hedge accounting. Management have conducted a review of the new standard and part 1 and 3 have not impacted the Group on Transition. In part 2, under the "expected credit loss", the Group has adopted a simplified model of recognising lifetime expected credit losses to trade receivables. Due to the forward-looking nature of this new standard, which contrasts with that of IAS 39 where provisions are based on an incurred loss basis, there has been an increase in the provision for trade receivables of £0.95m. This new provision matrix has been calculated based on geographical location of the Group's entities using historical default rates and projecting this forward considering any specific forecasts relating to local economies. When adopting IFRS 9, the Group has applied transitional relief and opted not to restate prior periods with the difference on transition being recognised in retained earnings.

The financial information in this interim report is in compliance with the recognition and measurement principles of IFRS as adopted by the European Union (EU) but does not include all disclosures that would be required under IFRSs. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information. The financial information for the half years ended 31 March 2019 and 31 March 2018 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and is unaudited but has been reviewed by our auditors.

The comparative financial information for the year ended 30 September 2018 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2018 have been filed with the Registrar of Companies. The Independent Auditor's Report on that Annual Report and Financial Statements for 2018 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the interim consolidated financial statements.

	£000
IAS 39: incurred loss provision at 30 September 2018	2,046
Lifetime expected credit loss adjustment	953
IFRS 9: expected credit loss provision at 1 October 2018	2,999

2          TAXATION

The tax charge on the profit for the half-year ended 31 March 2019 is based on the estimated tax rates in the jurisdictions in which the Group operates, for the year ending 30 September 2019.

3          DIVIDEND

In view of the current trading position, the board recommends the payment of an interim dividend of 0.5p per share for 2019 (2018: £nil).

4        SUMMARY SEGMENTAL ANALYSIS

REPORTABLE SEGMENTS

For management purposes, the Group is organised into three operating divisions: Europe & Americas (EuAm), Middle East (ME) and Asia Pacific (APAC). These divisions are the basis on which the Group is structured and managed, based on its geographic structure. The following key service provisions are provided across all three operating divisions: quantity surveying, planning / programming, quantum and planning experts, dispute avoidance / resolution, litigation support, contract administration and commercial advice / management. Segment information about these reportable segments is presented

below.

SIX MONTHS ENDED 31 MARCH 2019 (UNAUDITED)	Europe & Americas £000	Middle East £000	Asia Pacific £000	Eliminations £000	Unallocated £000	Consolidated £000
Total external revenue	14,851	10,321	4,539	-	-	29,711
Total inter-segment revenue	11	2	15	(28)	-	-
Total revenue	14,862	10,323	4,554	(28)	-	29,711
Segmental profit/(loss)	1,984	363	(576)	-	-	1,771
Unallocated corporate expenses(1)	-	-	-	-	(959)	(959)
Share-based payment charge	-	-	-	-	243	243
Operating profit/(loss)	1,984	363	(576)	-	(716)	1,055
Finance income	-	-	-	-	20	20
Finance expense	-	-	-	-	(70)	(70)
Profit/(loss) before taxation	1,984	363	(576)	-	(766)	1,005
Taxation	-	-	-	-	(170)	(170)
Profit/(loss) for the period	1,984	363	(576)	-	(936)	835

SIX MONTHS ENDED 31 MARCH 2018 (UNAUDITED)	Europe & Americas £000	Middle East £000	Asia Pacific £000	Eliminations £000	Unallocated £000	Consolidated £000
Total external revenue	14,258	11,994	5,442	-	-	31,694
Total inter-segment revenue	53	26	2	(81)	-	-
Total revenue	14,311	12,020	5,444	(81)	-	31,694
Segmental profit	1,370	1,289	635	-	-	3,294
Unallocated corporate expenses(1)	-	-	-	-	(1,105)	(1,105)
Share-based payment charge	-	-	-	-	(379)	(379)
Operating profit/(loss)	1,370	1,289	635	-	(1,484)	1,810
Finance income	-	-	-	-	2	2
Finance expense	-	-	-	-	(86)	(86)
Profit/(loss) before taxation	1,370	1,289	635	-	(1,568)	1,726
Taxation	-	-	-	-	(297)	(297)
Profit/(loss) for the period	1,370	1,289	635	-	(1,865)	1,429

YEAR ENDED 30 SEPTEMBER 2018 (AUDITED)	Europe & Americas £000	Middle East £000	Asia Pacific £000	Eliminations £000	Unallocated £000	Consolidated £000
Total external revenue	28,749	22,910	10,956	-	-	62,615
Total inter-segment revenue	55	26	2	(83)	-	-
Total revenue	28,804	22,936	10,958	(83)	-	62,615
Segmental profit	2,968	2,139	952	-	-	6,059
Unallocated corporate expenses(1)	-	-	-	-	(2,089)	(2,089)
Share-based payment charge	13	-	-	-	(1,113)	(1,100)
Operating profit/(loss)	2,981	2,139	952	-	(3,202)	2,870
Finance income	-	-	-	-	17	17
Finance expense	-	-	-	-	(148)	(148)
Profit/(loss) before taxation	2,981	2,139	952	-	(3,333)	2,739
Taxation	-	-	-	-	(567)	(567)
Profit/(loss) for the period	2,981	2,139	952	-	(3,900)	2,172

(1) Unallocated costs represent Directors' remuneration, administration staff, corporate head office costs and expenses associated with AIM.

5         EARNINGS PER SHARE

	6 months ended 31 March 2019 £000 Unaudited	6 months ended 31 March 2018 £000 Unaudited	Year ended 30 September 2018 £000 Audited
Profit for the financial period attributable to equity shareholders Share-based payments cost and associated costs Adjusted profit from continuing operations for the financial period before share-based payments costs	832 (243) 589	1,429 379 1,808	2,169 1,100 3,269
Weighted average number of shares: -     Ordinary shares in issue -     Shares held by EBT	53,921,201 (3,677)	53,862,868 (155,552)	53,862,868 (108,052)
Basic weighted average number of shares Effect of employee share options Diluted weighted average number of shares	53,917,524 3,297,421 57,214,945	53,707,316 2,104,818 55,812,134	53,754,816 2,762,696 56,517,512
Basic earnings per share attributable to equity shareholders of the Parent (pence) Diluted earnings per share attributable to equity shareholders of the Parent (pence) Adjusted basic earnings per share before share-based payment cost	1.5p 1.5p 1.1p	2.7p 2.6p 3.4p	4.0p 3.8p 6.1p

6         POST BALANCE SHEET EVENT

          There has been no significant event requiring disclosure since 31 March 2019.

 

END

 

 

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