Half Yearly Report

RNS Number : 6817T

Jaywing PLC

22 November 2013

 



Jaywing plc

Interim Results 2013/2014

Jaywing plc (AIM: JWNG) today announced its interim results for the six months ended 30 September 2013.

Performance Highlights

·      Gross profit £16.3m; (2012: £14.7m)

·      EBITDA* before other income £1.66m; (2012: £1.31m)

·      Net debt £1.8m; (2012: £1.4m); undrawn banking facilities of £2.1million

·      Adjusted basic earnings per share 1.05 pence; (2012: 0.88 pence)

·      Adjusted diluted earnings per share 1.01 pence (2012: 0.83 pence)   

*Before amortisation, share based charges, impairment and exceptional items

Commenting on the results, Andrew Wilson, Chairman of Jaywing plc, said:

"As the Group continues its restructuring and repositioning I am pleased to report a stable underlying operating performance from continuing operations.  The disposal of our e-Commerce arm positions us well for strategic investment in the coming period and we remain on plan in our efforts to turnaround the business."

Enquiries:

Jaywing plc
Michael Sprot (Company Secretary)	Tel: [phone]
Cenkos Securities plc
Nicholas Wells/Ivonne Cantu (Nomad)	Tel: [phone]

INTERIM RESULTS

In what continues to be a relatively flat economic environment, the Group's performance for the first half of the financial year has been marginally above budget and shows an improvement in overall EBITDA to £1.7m (2012: £1.3m). 

The Group has continued its repositioning, changing its name early in this period of trading to avoid legal distractions and consolidating into the wholly owned name of Jaywing.  It continues to operate in two divisions of Agency (Brand, Digital Marketing and Contact) and Consulting.  In addition, shortly after the end of the first half year, the plc completed the sale of the e-commerce arm, Tryzens Limited, for a total transaction value of £6.0 million in cash. The funds were provided by Scottish Equity Partners to allow for the acquisition of the total share capital of Tryzens through a management buyout.

The Agency side of the business has recovered well from a difficult prior year with EBITDA of £1.4m (2012: £0.6m).  The integration of Iris Associates into the Brand Communications team is now complete and its success is reflected in the improved operating performance of this part of the business.

Consulting's profits have fallen marginally to £1.5m (2012: £1.6m).  Underlying figures for the continuing part of the business post Tryzens disposal show a more marked decline within Consulting to £0.9m (2012: £1.7m); this reflects the planned completion of a substantial consultancy engagement supporting a Financial Services client. Total EBITDA for the continuing business after central costs is £1.1m (2013 H1: £1.4m and 2013 H2: £1.1m)

Continuing business EBITDA

	6 months to 30 September 2012	6 months to 31 March 2013	6 months to 30 September 2013
	£'000	£'000	£'000
Revenue	12,954	13,923	13,204
Direct costs	(2,542)	(3,698)	(2,805)
Gross profit	10,412	10,225	10,399
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition costs and charges for share based payments	(8,971)	(9,136)	(9,305)
Operating profit before depreciation, amortisation, exceptional items, acquisition costs and charges for share based payments	1,441	1,089	1,094

Overall, the sale of Tryzens has meant a post-tax statutory loss of £4.6m (following the recognition of £4.8m of losses relating to measurement to fair value).

The interim results also benefit from a further distribution from the administrator of a client of £170k (2012: £567k).   A further dividend is expected in H2.

Underlying net debt at 30 September 2013 was £1.8m, down from £2.3m in March 2013 (2012: £1.4m) and cash receipts for Tryzens transform this position to a positive cash balance of £3.6m.

The first half of the year has seen stable underlying operating performance in line with our budgets.  The further changes that have been made in the operating structure continue to place the company on a firmer footing in its core business area of Marketing services. The disposal of Tryzens has positioned us well to invest in areas of closer strategic fit and concentrate on our core proposition. 

Andrew Wilson

Chairman

21 November 2013

Consolidated interim statement of comprehensive income (unaudited)

		Six months ended 30 Sept 2013	Six months ended 30 Sept 2012	Year ended 31 March 2013
	Note	£'000	£'000	£'000
Revenue	4	13,204	12,954	26,877
Direct costs		(2,805)	(2,542)	(6,240)
Gross profit		10,399	10,412	20,637
Other operating income		170	567	738
Amortisation		(733)	(669)	(1,402)
Operating expenses		(9,785)	(9,263)	(18,753)
Operating profit		51	1,047	1,220
Finance income		-	1	1
Finance costs		(35)	(131)	(205)
Net financing costs		(35)	(130)	(204)
Profit before tax		16	917	1,016
Tax expense		(39)	(192)	(425)
(Loss) / profit for the period from continuing operations		(23)	725	591
Profit / (loss) for the period from discontinued operations	10	256	(268)	42
Loss on measurement to fair value less costs to sell of discontinued operation	10	(4,847)	-	-
(Loss) / profit for the period attributable to the equity holders of the parent		(4,614)	457	633
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss
Cash flow hedging		-	51	52
(Loss) and total comprehensive income		(4,614)	508	685
(Loss) / earnings per ordinary share	6
Basic earnings per share
- (Loss) / earnings from continuing operations		(0.03p)	0.97p	0.79p
- (Loss) / earnings from discontinued operations		(6.16p)	(0.36p)	0.06p
		(6.19p)	0.61p	0.85p
Diluted earnings per share
- (Loss) / earnings from continuing operations		(0.03p)	0.92p	0.76p
- (Loss) / earnings from discontinued operations		(5.94p)	(0.34p)	0.06p
		(5.97p)	0.58p	0.82p

Consolidated interim balance sheet (unaudited)

		30 Sept 2013	30 Sept 2012	31 March 2013
	Note	£'000	£'000	£'000
Assets
Non-current assets
Property, plant and equipment		336	431	384
Goodwill		24,621	24,621	24,621
Other intangible assets		5,487	5,670	6,219
		30,444	30,722	31,224
Current assets
Inventories		-	20	-
Trade and other receivables		6,612	5,636	6,649
Cash and cash equivalents		1	542	1
Assets included in disposal group classified as held for sale		8,041	12,586	12,572
		14,654	18,784	19,222
Total assets		45,098	49,506	50,446
Liabilities
Current liabilities
Bank overdraft		(1,374)	-	(960)
Other interest bearing loans and borrowings	7	(500)	(1,700)	(1,500)
Trade and other payables		(3,339)	(2,617)	(3,260)
Tax payable		(540)	(899)	(656)
Provisions		-	(40)	-
		(5,753)	(5,256)	(6,376)
Non-current liabilities
Deferred tax liabilities		(1,261)	(1,358)	(1,429)
Liabilities included in disposal group classified as held for sale	10	(4,245)	(4,511)	(4,188)
		(5,506)	(5,869)	(5,617)
Total liabilities		(11,259)	(11,125)	(11,993)
Net assets		33,839	38,381	38,453
Equity
Capital and reserves attributable to equity holders of the company
Share capital		34,051	34,051	34,051
Share premium account		6,608	6,608	6,608
Capital redemption reserve		125	125	125
Shares purchased for treasury		(25)	(25)	(25)
Share option reserve		137	207	137
Retained earnings		(7,057)	(2,585)	(2,443)
Total equity		33,839	38,381	38,453

Consolidated interim cash flow statement (unaudited)

		Six months ended 30 Sept 2013	Six months ended 30 Sept 2012	Year  ended 31 March 2013
	Note	£'000	£'000	£'000
Cash flow from operating activities
(Loss) / profit for the period		(4,614)	457	633
Adjustment for:
Depreciation, amortisation and impairment		5,931	1,031	2,164
(Profit) / loss on disposal of property, plant and equipment		-	(9)	4
Movement in provisions		-	(76)	(11)
Finance income		-	(1)	(6)
Finance costs		35	131	205
Share based payment expense		-	146	(8)
Taxation		116	108	399
Operating cash flow before changes in working capital		1,468	1,787	3,380
Increase in trade and other receivables		(591)	(386)	(1,000)
Decrease in inventories		-	61	81
Increase in trade and other payables		55	149	518
Cash generated from operations		932	1,611	2,979
Interest received		-	1	6
Interest paid		(35)	(122)	(203)
Tax paid		(314)	-	(976)
Net cash flow from operating activities		583	1,490	1,806
Cash flows from investing activities
Acquisition of subsidiary Iris net of cash acquired		-	-	(1,080)
Acquisition of property, plant and equipment		(93)	(411)	(546)
Proceeds from disposal of property, plant and equipment		-	687	677
Net cash (outflow) / inflow from investing activities		(93)	276	(949)
Cash flows from financing activities
Repayment of borrowings		(1,000)	(1,300)	(1,500)
Net cash outflow from financing activities		(1,000)	(1,300)	(1,500)
Net (decrease) / increase in cash, cash equivalents and bank overdrafts		(510)	466	(643)
Cash and cash equivalents at beginning of period		(815)	(172)	(172)
Cash and cash equivalents at end of period		(1,325)	294	(815)
Cash and cash equivalents comprise:
Cash at bank and in hand		1	294	1
Bank overdrafts	7	(1,326)	-	(816)
Cash and cash equivalents at end of period		(1,325)	294	(815)
Included in continuing operations		(1,373)	542	(959)
Included in disposal group		48	(248)	144
		(1,325)	294	(815)

Consolidated interim statement of changes in equity (unaudited)

	Share capital	Share premium account	Hedging reserve	Capital redemption reserve	Treasury Shares	Share option reserve	Retained earnings	Total  equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2012	34,051	6,608	(52)	125	(25)	207	(3,170)	37,744
Credit in respect of share based payments	-	-	-	-	-	-	128	128
Transactions with owners	-	-	-	-	-	-	128	128
Profit for the period							457	457
Other comprehensive income:
Cash flow hedges	-	-	52	-	-	-	-	52
Total comprehensive income for the period	-	-	52	-	-	-	457	509
Balance at 30 September 2012	34,051	6,608	-	125	(25)	207	(2,585)	38,381

Allotment of shares from Treasury on the exercise of options
Credit in respect of share based payments	-	-	-	-	-	-	(104)	(104)
Transfer from share option reserve	-	-	-	-	-	(70)	70	-
Transactions with owners	-	-	-	-	-	(70)	(34)	(104)
Profit for the period	-	-	-	-	-	-	176	176
Total comprehensive income for the period	-	-	-	-	-	-	176	176
Balance at 31 March 2013	34,051	6,608	-	125	(25)	137	(2,443)	38,453

Profit for the period	-	-	-	-	-	-	(4,614)	(4,614)
Total comprehensive income for the period	-	-	-	-	-	-	(4,614)	(4,614)
Balance at 30 September 2013	34,051	6,608	-	125	(25)	137	(7,057)	33,839

1.     General Information

Jaywing plc (the "Company") is incorporated and domiciled in the United Kingdom. The Company is listed on the AIM market of the London Stock Exchange. The registered address is Players House, 300 Attercliffe Common, Sheffield, S9 2AG.

The interim financial information was approved for issue on 21 November 2013.                        . 

2.     Basis of preparation

The consolidated interim financial statements for the six months ended 30 September 2013 have been prepared in accordance with applicable accounting standards and under the historical cost convention except for certain financial instruments that are carried at fair value.

The financial information for the year ended 31 March 2013 set out in this interim report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.  The Group's statutory financial statements for the year ended 31 March 2013 have been filed with the Registrar of Companies.  The auditor's report on those financial statements was unqualified and did not contain statements under Section 498 (2) or Section 498 (3) of the Companies Act 2006.

The consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2013, which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

3.     Accounting policies

Except as described below, the principal accounting policies of Jaywing plc and its subsidiaries ("the Group") are consistent with those set out in the Group's 2013 annual report and financial statements.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

The following standards and interpretations of relevance to the Group have been issued but are not yet effective and have not been adopted by the Group:

· IFRS 9 Financial Instruments (effective 1 January 2015)

· IFRS 10 Consolidated Financial Statements (effective 1 January 2014)

· IFRS 11 Joint Arrangements (effective 1 January 2014)

· IFRS 12 Disclosure of Interests in Other Entities (effective 1 January 2014)

· IAS 27 (Revised), Separate Financial Statements (effective 1 January 2014)

· IAS 28 (Revised), Investments in Associates and Joint Ventures (effective 1 January 2014)

These standards and interpretations are not expected to have any significant impact on the Group's financial statements.

Other standards and interpretations in issue but not yet effective are not considered to have any relevance to the Group.

4.     Segment information (unaudited)

The Group reports its business activities in two areas: Agency Services and Consulting being its two primary business activities. Unallocated represents the Group's head office function, along with intragroup transactions.

Total assets exclude intangible assets, cash and external borrowings which have not been allocated to operating segments.

All the Group's activities are carried out within the UK. During the period one customer included within the Consulting segment accounted for greater than 10% of the Group's revenue. This customer accounted for 10.6% (2012: 19.1%) of total Group revenue.

4.     Segment information (unaudited) (continued)

Six months ended 30 September 2013
	Agency Services	Consulting	Unallocated	Continuing Group	Disposal Group	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Revenue	9,491	4,455	(742)	13,204	7,382	20,586
Direct costs	(2,185)	(1,362)	742	(2,805)	(1,439)	(4,244)
Gross profit	7,306	3,093	-	10,399	5,943	16,342
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition costs and charges for share based payments	(5,938)	(2,190)	(1,177)	(9,305)	(5,375)	(14,680)
Operating profit before depreciation, amortisation, exceptional items, acquisition costs and charges for share based payments	1,368	903	(1,177)	1,094	568	1,662
Other operating income	153	17	-	170	-	170
Depreciation	(92)	(21)	(4)	(117)	(48)	(165)
Amortisation	(464)	(269)	-	(733)	(187)	(920)
Exceptional costs	(41)	-	(115)	(156)	-	(156)
Acquisition related costs	(207)	-	-	(207)	-	(207)
Operating profit / (loss)	717	630	(1,296)	51	333	384
Finance costs				(35)	-	(35)
Profit before tax				16	333	349
Tax expense				(39)	(77)	(116)
(Loss) / profit for the period before loss on measurement to fair value				(23)	256	233
Six months ended 30 September 2012
	Agency Services	Consulting	Unallocated	Continuing Group	Disposal Group	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Revenue	7,963	5,059	(68)	12,954	4,245	17,199
Direct costs	(1,590)	(1,058)	106	(2,542)	-	(2,542)
Gross profit	6,373	4,001	38	10,412	4,245	14,657
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition costs and charges for share based payments	(5,769)	(2,278)	(924)	(8,971)	(4,381)	(13,352)
Operating profit before depreciation, amortisation, exceptional items, acquisition costs and charges for share based payments	604	1,723	(886)	1,441	(136)	1,305
Other operating income	512	55	-	567	-	567
Depreciation	(110)	(36)	-	(146)	(33)	(179)
Amortisation	(400)	(269)	-	(669)	(183)	(852)
Charges for share based payments	-	-	(146)	(146)	-	(146)
Operating profit / (loss)	606	1,473	(1,032)	1,047	(352)	695
Finance income				1	-	1
Finance costs				(131)	-	(131)
Profit / (loss) before tax				917	(352)	565
Tax expense				(192)	84	(108)
Profit / (loss) for the period				725	(268)	457

4.   Segment information (unaudited) (continued)

Year ended 31 March 2013
	Agency Services	Consulting	Unallocated	Continuing Group	Disposal Group	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Revenue	17,303	10,301	(727)	26,877	9,441	36,318
Direct costs	(4,128)	(2,968)	856	(6,240)	-	(6,240)
Gross profit	13,175	7,333	129	20,637	9,441	30,078
Operating expenses excluding depreciation, amortisation, exceptional items, acquisition costs and charges for share based payments	(11,691)	(4,413)	(2,003)	(18,107)	(8,957)	(27,064)
Operating profit before depreciation, amortisation, exceptional items, acquisition costs and charges for share based payments	1,484	2,920	(1,874)	2,530	484	3,014
Other operating income	665	73	-	738	2	740
Depreciation	(218)	(62)	(7)	(287)	(106)	(393)
Amortisation	(862)	(540)	-	(1,402)	(369)	(1,771)
Acquisition related costs	(367)	-	-	(367)	-	(367)
Charges for share based payments	-	-	8	8	-	8
Operating profit / (loss)	702	2,391	(1,873)	1,220	11	1,231
Finance income				1	5	6
Finance costs				(205)	-	(205)
Profit before tax				1,016	16	1,032
Tax expense				(425)	26	(399)
Profit for the period				591	42	633

Total assets	Agency Services	Consulting	Unallocated	Continuing Group	Disposal Group	Total
	£'000	£'000	£'000	£'000	£'000	£'000
30 September 2013	24,864	12,087	106	37,057	8,041	45,098
31 March 2013	25,965	11,879	30	37,874	12,572	50,446
30 September 2012	23,443	13,085	392	36,920	12,586	49,506

5.     Tax expense (unaudited)

A reconciliation of the charge that would result from applying the standard UK corporation tax rate to profit before tax to the tax charge is given below.

		Six months ended 30 Sept 2013	Six months ended 30 Sept 2012	Year  ended 31 March 2013
		£'000	£'000	£'000
Recognised in the consolidated statement of comprehensive income:
Current year tax		320	343	958
Origination and reversal of temporary differences		(204)	(235)	(559)
Total tax charge		116	108	399
(Loss) / profit before tax		(4,498)	565	1,032
Tax charge thereon at UK corporation tax rate of 23% (2012: 24%)		(1,035)	136	248
Effects of:
Non-deductible expenses		-	2	20
Impairment of goodwill		1,115	-	-
Share based payment charges		-	31	2
Capital allowances in excess of depreciation		(191)	(60)	(38)
Other		227	(1)	132
Prior year adjustment		-	-	35
Total tax charge		116	108	399

6.     (Loss) / earnings per share (unaudited)

		Six months ended 30 Sept 2013	Six months ended 30 Sept 2012	Year  ended 31 March 2013
		Pence per share	Pence per share	Pence per share
Basic earnings per share
- (Loss) / earnings from continuing operations		(0.03p)	0.97p	0.79p
- (Loss) / earnings from discontinued operations		(6.16p)	(0.36p)	0.06p
		(6.19p)	0.61p	0.85p
Diluted earnings per share
- (Loss) / earnings from continuing operations		(0.03p)	0.92p	0.76p
- (Loss) / earnings from discontinued operations		(5.94p)	(0.34p)	0.06p
		(5.97p)	0.58p	0.82p

(Loss) / earnings per share have been calculated by dividing the (loss) / profit attributable to shareholders by the weighted average number of ordinary shares in issue during the period. The calculations of basic and diluted (loss) / earnings per share are:

		Six months ended 30 Sept 2013	Six months ended 30 Sept 2012	Year  ended 31 March 2013
		£'000	£'000	£'000
(Loss)/profit for the period from continuing operations		(23)	725	589
(Loss)/profit for the period from discontinued operations		(4,591)	(268)	42
Weighted average number of ordinary shares in issue:		Number '000	Number '000	Number '000
Basic		74,505	74,505	74,505
Adjustment for share options, warrants and contingent shares		2,737	4,137	2,737
Diluted		77,242	78,642	77,242
Adjusted earnings per share
		Six months ended 30 Sept 2013	Six months ended 30 Sept 2012	Year  ended 31 March 2013
		Pence per share	Pence per share	Pence per share
Basic adjusted earnings per share		1.05p	0.88p	1.47p
Diluted adjusted earnings per share		1.01p	0.83p	1.42p

Adjusted earnings per share have been calculated by dividing the profit attributable to shareholders before other income, amortisation, impairment and charges for share based payments by the weighted average number of ordinary shares in issue during the period. The numbers used in calculating the basic and diluted adjusted earnings per share are reconciled below:

		Six months ended 30 Sept 2013	Six months ended 30 Sept 2012	Year  ended 31 March 2013
		£'000	£'000	£'000
Profit before tax and impairment		349	565	1,032
Other income		(170)	(567)	(740)
Amortisation		920	852	1,771
Charges for share based payments		-	146	(8)
Adjusted profit attributable to shareholders		1,099	996	2,055
Current period tax charge		(320)	(343)	(958)
		779	653	1,097

7.     Bank overdraft, borrowings and loans (unaudited)

		30 Sept 2013	30 Sept 2012	31 March 2013
Summary		£'000	£'000	£'000
Bank overdraft		1,326	-	816
Borrowings, undiscounted cash flows		500	1,700	1,500
		1,826	1,700	2,316
Borrowings are repayable as follows:
Within 1 year
Bank overdraft		1,326	-	816
Borrowings		500	1,700	1,500
Total due within 1 year		1,826	1,700	2,316
Less future interest		-	-	-
Total due within 1 year		1,826	1,700	2,316
Average interest rates at the balance sheet date were:		%	%	%
Overdraft		3.35	3.35	3.35
Revolving credit facility		3.35	3.35	3.35

As the loans are at variable market rates their carrying amount is equivalent to their fair value.

The borrowing facilities available to the Group at 30 September 2013 were £3.9 million (2012: £5.7 million) and, taking into account cash balances within the Group, there was £2.1 million (2012: £4.3 million) of available borrowing facilities.

A composite accounting system is set up with the Group's bankers, which allows debit balances on overdraft to be offset across the Group with credit balances.

Reconciliation of net debt	Cash at bank and in hand	Overdraft	Borrowings	Net debt
	£'000	£'000	£'000	£'000
30 September 2013	1	(1,326)	(500)	(1,825)
31 March 2013	1	(816)	(1,500)	(2,315)
30 September 2012	294	-	(1,700)	(1,406)

8.     Provisions (unaudited)

		30 Sept 2013	30 Sept 2012	31 March 2013
		£'000	£'000	£'000
At the beginning of the period		-	116	116
Released		-	-	(11)
Utilised during the year		-	(76)	(105)
At the end of the period		-	40	-

Provisions relate to leases in the Group where the commercial benefit has either ceased or will cease before the normal expiry period.

9.     Share capital (unaudited)

Authorised:

	45p deferred shares		5p ordinary shares
	£'000		£'000
Authorised share capital at 31 March 2013 and 30 September 2013	45,000		10,000

Allotted, issued and fully paid

	45p deferred shares	5p ordinary shares
	Number	Number		£'000
Issued share capital at 31 March 2013 and at 30 September 2013	67,378,520	74,604,999		34,051

No shares were issued in the period.

10.   Post Balance Sheet event

On 7 October 2013 Jaywing plc announced that it had completed the sale of its e-commerce arm, Tryzens Limited, for a total transaction value of £6.0 million in cash. The funds were provided by Scottish Equity Partners to allow for the acquisition of the total share capital of Tryzens through a management buyout.

Tryzens Limited Interim Statement of Comprehensive Income (unaudited)

		Six months ended 30 Sept 2013	Six months ended 30 Sept 2012	Year ended 31 March 2013
		£'000	£'000	£'000
Revenue		7,382	4,245	9,441
Direct costs		(1,439)	-	-
Gross profit		5,943	4,245	9,441
Other operating income		-	-	2
Amortisation		(187)	(183)	(369)
Operating expenses		(5,423)	(4,414)	(9,063)
Operating profit / (loss)		333	(352)	11
Finance income		-	-	5
Net financing costs		-	-	5
Profit / (loss) before tax		333	(352)	16
Tax expense		(77)	84	26
Profit / (loss) for the period from discontinued operations		256	(268)	42
Loss on measurement to fair value less costs to sell of discontinued operations		(4,847)
Total loss from discontinued operations		(4,591)

Tryzens Limited interim balance sheet (unaudited)

		30 Sept 2013	30 Sept 2012	31 March 2013
		£'000	£'000	£'000
Assets
Non-current assets
Property, plant and equipment		305	295	329
Goodwill		5,132	5,132	5,132
Other intangible assets		2,578	2,951	2,765
		8,015	8,378	8,226
Current assets
Trade and other receivables		4,825	4,208	4,202
Cash and cash equivalents		48	-	144
		4,873	4,208	4,346
Total assets		12,888	12,586	12,572
Liabilities
Current liabilities
Bank overdraft		-	(248)	-
Trade and other payables		(3,447)	(3,389)	(3,471)
Tax payable		(210)	(172)	(86)
		(3,657)	(3,809)	(3,557)
Non-current liabilities
Deferred tax liabilities		(588)	(702)	(631)
		(588)	(702)	(631)
Total liabilities		(4,245)	(4,511)	(4,188)
Net assets of disposal group		8,643	8,075	8,384
Disposal proceeds (net of professional fees)		(3,796)
Loss on measurement to fair value less costs to sell of discontinued operations		4,847

Tryzens Limited interim cash flow statement (unaudited)

		Six months ended 30 Sept 2013	Six months ended 30 Sept 2012	Year  ended 31 March 2013
		£'000	£'000	£'000
Net cash (outflow)/inflow from operating activities		(73)	(362)	52
Net cash outflow from investing activities		(23)	(263)	(285)
Net decrease in cash, cash equivalents and bank overdrafts		(96)	(625)	(233)
Cash and cash equivalents at beginning of period		144	377	377
Cash and cash equivalents at end of period		48	(248)	144
Cash and cash equivalents comprise:
Cash at bank and in hand		48	-	144
Bank overdrafts	7	-	(248)	-
Cash and cash equivalents at end of period		48	(248)	144

11.   Related party transactions (unaudited)

There were no significant changes in the nature and size of related party transactions for the period from those disclosed in the Annual Report for the year ended 31 March 2013.

INDEPENDENT REVIEW REPORT TO JAYWING PLC

Introduction

We have been engaged by the company to review the interim financial information in the interim report for the six months ended 30 September 2013 which comprises the consolidated interim statement of comprehensive income, the consolidated interim balance sheet, the consolidated interim cash flow statement, the consolidated interim statement of changes in equity and the related notes 1 to 11.  We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the interim financial information.

This report is made solely to the company in accordance with guidance contained in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information performed by the Independent Auditor of the Entity'. Our review work has been undertaken so that we might state to the company those matters we are required to state to them in a review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusion we have formed.

Directors' responsibilities

The interim report is the responsibility of, and has been approved by, the directors. The AIM rules of the London Stock Exchange require that the accounting policies and presentation applied to the interim financial information are consistent with those which will be adopted in the annual accounts having regard to the accounting standards applicable for such accounts.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The interim financial information in the interim report has been prepared in accordance with the basis of preparation in note 2. 

Our responsibility

Our responsibility is to express to the company a conclusion on the interim financial information in the interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the interim financial information in the interim report for the six months ended 30 September 2013 is not prepared, in all material respects, in accordance with the basis of accounting described in note 2.

Grant Thornton UK LLP

Chartered Accountants

Sheffield

21 November 2013

 

END

 

 

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