Interim Results
30 April 2021
UP Global Sourcing Holdings plc
"Ultimate Products" or the "Group"
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 2021
A strong performance with favourable long-term consumer trends
Ultimate Products, the owner, manager, designer and developer of an extensive range of value‑focused consumer goods brands, announces its interim results for the six months ended 31 January 2021.
Financial Highlights
· Revenue up 11.4 % (or £7.7 m) to £75.4 m (H1 FY 20: £67.7 m)
o online platforms revenue up 53.6 %, and now representing 15.6 % of Group revenues
o UK and European supermarket customers revenue up 27.6 %, and now representing 27.0 % of Group revenues
· International revenue up 0.5 % (or £0.1 m) to £23.6 m (H1 FY 20: £23.5 m), representing 31.1 % of Group revenues with Germany performing particularly well, up 25.7 % (£1.5 m) (albeit offset elsewhere by the effect of non‑essential store closures during COVID-19 lockdowns)
· Underlying EBITDA1 up 20.8 % (or £1.5 m) to £8.8 m (H1 FY 20: £7.2 m)
· Underlying profit before taxation2 up 24.4 % (or £1.5 m) to £7.7 m (H1 FY 20: £6.2 m)
· Profit before taxation up 18.9 % (or £1.1 m) to £7.2 m (H1 FY 20: £6.0 m)
· Net bank debt/underlying EBITDA ratio at 31 January 2021 was 0.1x (31 July 2020: 0.4x; 31 January 2020: 1.0x)
· Interim dividend of 1.69 p per share, up 45.7 % (H1 FY 20: 1.16 p), payable on 30 July 2021 to shareholders on the register on 18 June 2021
Operational Highlights
· Repaid all monies received under the Coronavirus Job Retention Scheme, in addition to bringing up to date all payments which had been deferred under the government's VAT deferral and Time to Pay initiatives
· Purchased Petra, the Germany electrical kitchen brand, post period end in February 2021
· Restarted the planned investment in Manor Mill head office, having previously deferred the project as part of COVID-19 mitigation. Refurbishment will provide additional capacity for future growth, and is expected to be largely completed during H2 FY 21
· Further strengthened the Board through the appointments of Jill Easterbrook and Christine Adshead as independent Non-Executive Directors in September 2020
· Continued to work on a range of initiatives to support our people, make a positive contribution to our local communities, and reduce our impact on the environment
Note:
1. Calculated after adding back share based payment charges and other non-underlying items as referred to in Note 10.
2. Calculated after adding back share-based payment charges and other non-underlying items as shown in Note 12.
Commenting on the results, Simon Showman, Chief Executive of Ultimate Products, said:
"We are pleased to have delivered another good performance during the first half of the year, and today's results illustrate yet again the resilience and adaptability of our business. As ever, I would like to thank all of our colleagues for their outstanding dedication, as well as for their efforts in helping Ultimate Products to provide much needed support to the local communities in which it operates.
Since the pandemic began, a number of trends have emerged that clearly play to Ultimate Products' strengths, and which we believe are here to stay. The increase in home working and home cooking, the emphasis on cleaning and hygiene products, and a more considered approach to spending are all positive developments for us, given our strong portfolio of value-led brands for the home. In addition, the switch to online shopping is driving outstanding growth in our online segment, which in only a relatively short period of time has gone from a start-up to being a substantial contributor to our revenue and a key driver of our growth.
As a result of these favourable and growing trends, as well as our customer base of leading retailers and the outstanding service that we are able to offer them, we remain confident in the future prospects for Ultimate Products."
For more information, please contact:
Ultimate Products +44 (0) 161 627 1400
Simon Showman, CEO
Andrew Gossage, Managing Director
Graham Screawn, Finance Director
Shore Capital +44 (0) 20 7408 4090
Mark Percy
Edward Mansfield
Sarah Mather
Powerscourt +44 (0) 207 250 1446
Rob Greening
Sam Austrums
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.
Notes to Editors
Ultimate Products is an owner, manager, designer and developer of a series of well-known brands focused on the home, selling to over 300 retailers across 37 countries. It has five product categories: Small Domestic Appliances; Housewares; Audio; Laundry; and Heating and Cooling. Its brands include Beldray (laundry, floor care, heating and cooling), Intempo (audio), Kleeneze (laundry), Salter (kitchenware), Petra (kitchenware) and Progress (cookware and bakeware).
The Group's products are sold to a broad cross-section of both large national and international multi‑channel retailers as well as smaller national retail chains, incorporating discount retailers, supermarkets, general retailers and online retailers. Its best-selling products include frying pans, mugs and speakers, selling approximately one million of each every year.
Founded in 1997, Ultimate Products is headquartered in Oldham, Greater Manchester, where it has design, sales, marketing, buying, quality assurance, support functions and warehouse facilities across two sites. Manor Mill, the Group's head office, includes a spectacular 20,000 sq ft showroom that showcases each of its brands. In addition, the Group has an office and showroom in Guangzhou, China and in Cologne, Germany.
Ultimate Products recognises the importance of mainintaing the highest standards of corporate behaviour, and has a strong focus on the environmental, social and governance-related aspects of its business. The Group has a range of initiatives in place to support its people, make a positive contribution to its local communities, and reduce its impact on the environment.
Ultimate Products' graduate development scheme was launched in 2012 and in 2020 it welcomed its 300th graduate. In total, Ultimate Products now employs over 300 staff.
Please note that Ultimate Products is not the owner of Russell Hobbs or Salter. The company currently has licence agreements in place granting it an exclusive licence to use the "Russell Hobbs" trademark for cookware (NB this does not include Russell Hobbs electrical appliances) and the "Salter" trademark for electrical and cookware (NB this does not include Salter scales).
For further information, please visit www.upgs.com
INTERIM STATEMENT
We are pleased to present the Interim Report for FY 21, a period in which the business again demonstrated its resilience and adaptability against the extremely challenging background of the COVID-19 pandemic. During this difficult time, Ultimate Products has not only protected the business and its colleagues, but has also used it as an opportunity to drive growth and productivity. In addition, the Group has sought to increase its long-standing support for the communities in which it is proud to operate, targeting help at those who have been most disadvantaged by the crisis.
STRATEGY
Our purpose is to provide beautiful products for every home. We do this by designing, sourcing and supplying quality homeware products through our innovative, sustainable and customer-orientated capabilities.
The Group's strategy is to develop its portfolio of brands for mass-market, value-led, consumer goods for the home focused on the following channels:
1. International retailers;
2. Supermarkets;
3. Online platforms; and
4. Discounters.
The Board remains confident that this long-standing strategy will continue to deliver long-term growth.
TRADING FOR THE PERIOD
Despite the challenges of COVID-19, revenue increased for the six months ended 31 January 2021 ('H1 FY 21') by 11.4 % (£7.7 m) to £75.4 m (H1 FY 20 - £67.7 m).
International
International revenue was ahead of last year by 0.5 % (£0.1 m) to £23.6 m (H1 FY 20 - £23.5 m), with Germany performing particularly well, up 25.7 % (£1.5 m), albeit offset elsewhere by the effect of non‑essential store closures during COVID‑19 lockdowns. The prospects for our international business, which is mainly focused on Europe, remain very encouraging with Germany representing a particularly exciting opportunity.
Supermarkets
Our brands continued to resonate very well with supermarket customers in both the UK and, increasingly, in Europe which led to further robust growth in H1 FY 21 with revenue up 27.6 % (£4.4 m) to £20.4 m (H1 FY 20 - £16.0 m) with the key drivers being the Beldray, Salter and Russell Hobbs brands. The supermarket segment accounted for 27.1 % of revenue in the period (H1 FY 20 - 23.7 %), which is a continuation of the long-term growth in revenue and increased revenue share from this channel. This is being driven by improved consumer awareness and perception of our brands allied with excellent execution and service to the retailer.
Online Platforms
Our online business grew substantially, with revenue up 53.6 % (£4.1 m) to £11.8 m (H1 FY 20 - £7.7 m). Online accounted for 15.6 % of overall revenue (H1 FY 20 - 11.3 %) against an existing long-term target of over 20 %. This target has now been reviewed and increased to 30 %, driven by our enhanced operational capabilities, ongoing product development and European expansion plans. COVID‑19 lockdowns are likely to have accelerated the consumer switch to online shopping by several years. We believe that this changed behaviour is here to stay and have seen particularly strong sales in kitchen electrical, cookware, cleaning and laundry products. In only a few years, online has gone from a start-up to a substantial contributor to overall revenue and a key driver of growth.
Discounters
Sales to discounters increased by 0.6 % (£0.2 m) to £28.4 m (H1 FY 20 - £28.2 m). This represented a stabilisation after a decline in FY 20, which was caused by discount retailers being more likely to be closed as non-essential stores when compared to other channels such as supermarkets. When the COVID-19 crisis and associated lockdowns come to an end, we expect to see the discount sector resume its long-term trend of growth and this represents a continued opportunity for Ultimate Products.
Operating Margins
Gross margin decreased to 22.8 % (H1 FY 20 - 23.6 %) as a result of online marketing spend (£0.9 m) in the period being expensed via cost of sales. In H1 FY 20, the equivalent spend was lower (£0.2 m) and was included in administrative expenses. The higher online marketing spend accelerated the sales performance of the significant number of new product lines that came into the business during the period, as product development continued during CY 20.
Despite the increase in revenues, administrative expenses before share-based payment charges and the repayment of furlough monies ('overheads') were £0.2 m lower than last year, a decrease of 2.6 %. This was the net of a number of moving parts including COVID-19 related savings on travel and exhibition costs (£0.7 m) partly offset by an increase in the bonus accrual (£0.5 m). As stated above, there were online marketing costs (£0.2 m) included in overheads last year that were re-classified into cost of sales during H1 FY 21. It is expected that travel and exhibition spend will increase again when the COVID-19 restrictions end but not to their previous levels. New ways of working developed during the pandemic, for example virtual selling and some remote working, are expected to continue in the long-term.
Looking through the above movements in gross margin and overheads, it is clear that the Group's relentless focus on productivity is delivering significant benefits. The Board believes that the COVID‑19 crisis and the insights that it has brought have assisted in this process. As a result, during the period, the Group saw increased revenues off a broadly flat resource base leading to a 0.9 % increase in the underlying EBITDA1 margin to 11.6 % (H1 FY 20 - 10.7 %). The combination of higher revenues and a higher operating margin led to a 20.8 % (£1.5 m) increase in underlying EBITDA1 to £8.8 m (H1 FY 20 - £7.2 m) and a 24.4 % (£1.5 m) increase in underlying profit before taxation2 to £7.7 m (H1 FY 20 - £6.2 m).
BALANCE SHEET
Net working capital at 31 January 2021 was £16.9 m, down from £22.7 m at 31 January 2020 - a decrease of £5.8 m or 25.5 %.
Net cash from operations for the period was level at £6.8 m (H1 FY 20 - £6.8 m) as working capital has remained stable overall since 31 July 2020 as increased trade debtors, driven by the growth in revenue, was offset by higher trade creditors because of improved supplier terms.
Net bank debt at 31 January 2021 was only £1.5 m, down from £3.8 m at 31 July 2020 and £11.2 m at 31 January 2020. This substantial de-leveraging over the 12 months to 31 January 2021 is the result of strong profitability combined with reduced stock levels, arising from increased online demand, and improved supplier terms.
As a result, the net bank debt/underlying EBITDA ratio at 31 January 2021 was 0.1x (31 July 2020 - 0.4x; 31 January 2020 - 1.0x) based on underlying EBITDA for the 12 months to 31 January 2021. The Group maintained comfortable headroom within its bank facilities, with headroom of £25.6 m at 31 January 2021 (31 July 2020 - £21.3 m; 31 January 2020 - £13.2 m) and operated well within its banking covenants.
Shareholders' equity increased to £16.0 m at 31 January 2021, up from £12.5 m at 31 January 2020, an increase of £3.5 m. The main movements in shareholders' equity were:
1. An increase in retained earnings of £4.5 m; offset by
2. An increase in the hedging reserve of £0.7 m; and
3. Total debits to the Employee Benefit Trust reserve of £0.5 m relating to the purchase of the Group's shares by the UP Global Sourcing Employee Benefit Trust ('UPGS EBT').
COVID-19
Protecting Colleagues
From the beginning of the pandemic, our first priority has been the health and well‑being of colleagues. We have done and continue to do everything we can to ensure that they are given all of the support and assistance that they need. This includes a strictly monitored and comprehensive range of safety measures in order to protect all colleagues working from the Group's sites and continued home working for those who can, in accordance with government guidance.
Community
Ultimate Products is headquartered in Oldham, Greater Manchester and we are proud to be part of that community as well as the other international communities in which we operate. We take our role as a responsible and socially engaged corporate citizen very seriously and are committed to helping our local communities as they deal with the fall-out from the pandemic. Going into this crisis, Oldham already faced economic and social challenges with a significant proportion of its wards within the 20 % most deprived in England. COVID-19 has compounded these challenges but the response of the community has been remarkable, which reflects the energy, decency and spirit of its people. We have been proud to play our part in these efforts which include supporting the local food bank, NHS and key workers, domestic abuse survivors and young carers. We have also supported a range of initiatives aimed at giving young people access to training, further education and employment.
Furlough Monies
During the period we repaid the £465,237 received under the Coronavirus Job Retention Scheme. In addition, in July 2020 we brought up to date all payments which had been deferred under the government's VAT deferral and Time to Pay initiatives. This was made possible because the Group's profitability and cash generation have been stronger than expected during the crisis. Returning this money to the taxpayer was therefore the right thing to do and we are grateful to the government and the taxpayer for providing us with this support.
OPERATIONAL REVIEW
Head Office Investment
The Group planned to invest £1.8 m during CY 20 in its Manor Mill head office in order to provide additional capacity for future growth and a better-quality working environment for our colleagues. These plans were deferred in light of the decision to temporarily cease all non-critical capital expenditure projects as part of the measures that the Group took to mitigate the financial impact of COVID‑19 on the business. The works have now been restarted and are expected to be largely completed during H2 FY 21. This investment is an important step in the curation of our talent, providing a workplace that will promote training, collaboration and the interchange of ideas between colleagues.
Acquisition of Petra Brand
On 9 February 2021, the Group purchased Petra, the German kitchen electrical brand. Founded in 1968 in Bavaria, Petra originally specialised in coffee machines before expanding its range into other kitchen electrical products. In recent years, the brand received limited investment from its previous owner, although market research shows that it remains well known to German consumers.
The Group plans to relaunch and refresh the Petra brand with a new range of kitchen electrical appliances. As the brand is well recognised in Germany, where it has a strong reputation for quality and design innovation, Ultimate Products will initially target this market. In time, it is expected that Petra will be launched into other territories, trading on its German heritage and reputation for quality.
Employee Share Participation
On 2 December 2020 the Group made a further grant of options over 531,595 ordinary shares under its Save As You Earn Scheme ('the SAYE Scheme') equating to 0.65 % of the current issued share capital of the Group. Under the SAYE Scheme, all qualifying colleagues are offered each year the opportunity to participate in the future growth of the business through the granting of share options. As at 31 January 2021, there were 104 colleagues saving each month under the SAYE Scheme with share options equating to 1.94 % of the current issued share capital of the Group.
On 14 December 2020, the Group also made a further grant of options over 655,000 ordinary shares under the Group's Performance Share Plan ('PSP') equating to 0.80 % of the current issued share capital of the Group. Simon Showman, Chief Executive, and Andrew Gossage, Managing Director, did not participate in the PSP as they are already substantial shareholders. As at 31 January 2021, there were total share options granted under the PSP to 22 key managers equating to 2.16 % of the current issued share capital of the Group.
It is intended that any future exercise of options granted to date under the SAYE Scheme and the PSP will be fully satisfied through the 4,058,307 ordinary shares currently held in trust by the UP Global Sourcing Employee Benefit Trust. Following these grants, the Group had a total of 3,367,603 share options outstanding at 31 January 2021 under the SAYE Scheme and the PSP.
The above share option awards represent a further significant step up in equity participation by managers and employees at all levels of the business, with the crucial objective of increased incentivisation and retention of key talent.
Board Changes
In September 2020, the Group announced the appointment of Jill Easterbrook and Christine Adshead as independent Non-Executive Directors. It was also announced that Barry Franks, the Company's co‑founder, would step down from the Board but would remain in the business as President in recognition of his outstanding and continuing contribution to Ultimate Products since its inception in 1997. The additions of Jill (formerly CEO of Boden, the fashion retailer) and Christine (a former Partner at PwC) have significantly added to the already strong expertise of the Group's Board.
Brexit
The Brexit transition period came to an end on 31 December 2020. This has been followed by a period of general disruption for the export of goods from the UK into Ireland and mainland Europe as businesses, hauliers and customs adapt to the new trading arrangements. The export of goods from the UK into Ireland and mainland Europe accounts for less than 10 % of Ultimate Products' revenues as the bulk of its EU business is imported directly into that territory, typically from China, without touching the UK.
For that part of the business which has been affected by these changes, the Group has adapted well to the new environment. Nevertheless, there has been some disruption, particularly in the very early part of CY 21, although this has reduced as we move through H2 FY 21. Full normalisation is expected by the beginning of Q4 FY 21 and the overall impact on FY 21 revenues is not expected to be material.
The new trading arrangements have led to additional duty costs as tariffs are charged on importation into the UK and then again as they are re-exported into the EU. These extra costs have been wholly offset by reductions in inward tariffs into the UK. We are currently in the process of applying for bonded warehouse status for our two distribution centres, which is expected to be granted during H1 FY 22. This will largely eliminate the double duty effect of exporting into the EU, leading to an estimated annual duty saving of approximately £0.3 m per annum.
Shipping
During the height of the pandemic in the spring and summer of CY 20, the shipping lines responded to the significant drop in demand from Europe and the USA by removing capacity. As demand returned during the autumn and winter of CY 20, the remaining capacity became squeezed and availability became more difficult to secure. This peaked in the run-up to Chinese New Year ('CNY') on 12 February 2021 as Western retailers and brands sought to get their product shipped ahead of the CNY shutdown. As a result, shipping rates spiked leading to substantial additional shipping costs for the Group and indeed all other businesses supplied out of China. Since CNY, shipping rates have begun to moderate and are predicted to largely normalise by Q1 FY 22.
The additional shipping costs are expected to reduce gross margin by approximately 1.0 - 1.5 % in H2 FY 21, compared to H1 FY 21, before recovering back to its previous level in H1 FY 22. This reduction in gross margin for H2 FY 21 is reflected in the profit guidance given below.
DIVIDEND
In line with the Group's dividend policy of 50 % of adjusted profits after tax, the Board has declared an interim dividend of 1.69 p per share, up from 1.16 p last year, an increase of 45.7 %. The interim dividend is payable on 30 July 2021 to shareholders on the register on 18 June 2021 with an ex-dividend date of 17 June 2021.
CURRENT TRADING AND OUTLOOK
The Board anticipates that its performance in FY 21 will be ahead of current expectations, with revenues forecast to be in excess of £135 m (FY 20 - £115.7 m). While the Group has seen an increase in shipping rates, as noted above, the Board nevertheless currently expects that underlying EBITDA for FY 21 will be in excess of £13.0 m (FY 20 - £10.4 m) with underlying profit before tax in excess of £10.8 m (FY 20 - £8.2 m).
The Board also believes that the COVID-19 pandemic will lead to long-term changes in consumer attitudes and behaviour, including more home working, more home cooking, a greater emphasis on hygiene and cleanliness, more online shopping and a more considered approach to spending. As Ultimate Products' brands are largely focused on the home, the Group is well placed to take advantage of these trends. This position is reinforced by our focus on leading retailers and the excellent end‑to‑end service that we provide to them. As a result, we are confident in the future prospects for the business.
James McCarthy Simon Showman
Chairman Chief Executive Officer
Note:
1. Calculated after adding back share-based payment charges and other non-underlying items as referred to in Note 10.
2. Calculated after adding back share-based payment charges and other non-underlying items as shown in Note 12.
Consolidated Condensed Income Statement
|
|
Note |
6 months ended £'000 |
6 months ended £'000 |
Year ended 31 Jul 2020 £'000 |
|
Revenue |
7 |
75,382 |
67,690 |
115,684 |
|
Cost of sales |
|
(58,199) |
(51,712) |
(89,084) |
|
Gross profit
|
|
17,183 |
15,978 |
26,660 |
|
Underlying administrative expenses |
|
(9,198) |
(9,441) |
(17,684) |
|
Underlying profit from operations |
|
7,985 |
6,537 |
8,916 |
|
Share-based payment charges and other non-underlying items |
9 |
(547) |
(174) |
199 |
|
Administrative expenses
|
|
(9,745) |
(9,615) |
(17,485) |
|
Profit from operations
|
10 |
7,438
(277) |
6,363
(342) |
9,115
(753) |
|
Profit before taxation
|
12 |
7,161 |
6,021 |
8,362 |
|
Income tax |
13 |
(1,446) |
(1,323) |
(1,747) |
|
Profit for the period |
|
5,715 |
4,698 |
6,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pence |
Pence |
Pence |
|
Earnings per share - basic |
14 |
7.3 |
6.0 |
8.4 |
|
Earnings per share - diluted |
14 |
7.2 |
5.9 |
8.3 |
|
|
|
|
|
|
Consolidated Condensed Statement of Comprehensive Income
| 6 months ended £'000 | 6 months ended £'000 | Year ended 31 Jul 2020 £'000 |
Profit for the period | 5,715 | 4,698 | 6,615 |
Other comprehensive expense
|
|
|
|
Items that may subsequently be reclassified to the income statement: Fair value movements on cash flow hedging instruments Hedging instruments recycled through the income statement at the end of hedging relationships
Foreign currency retranslation |
(721) 617
(9) |
(841) (740)
(15) |
(961) (1,238)
(8) |
Other comprehensive expense for the period
| (113) | (1,596) | (2,207) |
Total comprehensive income for period attributable to the equity holders of the company |
5,602 |
3,102 |
4,408 |
|
|
|
|
Consolidated Condensed Statement of Financial Position
|
Note | As at £'000 | As at £'000 | As at 31 Jul 2020 £'000 |
Assets Intangible assets Property, plant and equipment |
16 |
100 5,101 |
92 5,503 |
86 5,065 |
Deferred tax |
| 239 | 128 | 106 |
Total non-current assets |
| 5,440 | 5,723 | 5,257 |
Inventories |
| 15,775 | 18,129 | 16,022 |
Trade and other receivables | 17 | 23,820 | 20,275 | 18,495 |
Derivative financial instruments | 21 | 117 | 216 | 53 |
Cash and cash equivalents |
| 2,624 | 124 | 329 |
Total current assets
|
| 42,336 | 38,744 | 34,899 |
Total assets |
| 47,776 | 44,467 | 40,156 |
Liabilities Trade and other payables Derivative financial instruments Current tax Borrowings Lease liabilities |
21
19 20 |
(22,885) (1,079) (590) (4,012) (774) |
(15,931) (383) (641) (9,500) (669) |
(17,614) (1,342) (280) (3,903) (710) |
Total current liabilities
|
| (29,340) | (27,124) | (23,849) |
Net current assets
|
| 12,996 | 11,620 | 11,050 |
Borrowings Lease liabilities | 19 20 | - (2,428) | (1,657) (3,165) | (89) (2,804) |
Total non-current liabilities |
| (2,428) | (4,822) | (2,893) |
Total liabilities
|
| (31,768) | (31,946) | (26,742) |
Net assets |
| 16,008 | 12,521 | 13,414 |
|
|
|
|
|
Equity Share capital Share premium Employee Benefit Trust reserve Share-based payment reserve Hedging reserve Retained earnings |
|
205 2 (2,155) 877 (1,065) 18,144 |
205 2 (1,649) 703 (343) 13,603 |
205 2 (2,155) 796 (961) 15,527 |
Equity attributable to owners of the company |
| 16,008 | 12,521 | 13,414 |
|
|
|
|
|
Consolidated Condensed Statement of Changes in Equity
| Share capital
£'000 | Share premium
£'000 | Employee Benefit Trust reserve £'000 | Share-based payment reserve £'000 | Hedging reserve
£'000 | Retained earnings
£'000 | Total equity
£'000 |
As at 1 August 2020 | 205 | 2 | (2,155) | 796 | (961) | 15,527 | 13,414 |
Profit for the period | - | - | - | - | - | 5,715 | 5,715 |
Foreign currency translation | - | - | - | - | - | (9) | (9) |
Cash flow hedging movement | - | - | - | - | (104) | - | (104) |
Total comprehensive income for the period | - | - | - | - | (104) | 5,706 | 5,602 |
Transactions with shareholders: |
|
|
|
|
|
|
|
Dividends payable | - | - | - | - | - | (3,089) | (3,089) |
Share-based payments | - | - | - | 81 | - | - | 81 |
As at 31 January 2021 | 205 | 2 | (2,155) | 877 | (1,065) | 18,144 | 16,008 |
| Share capital
£'000 | Share premium
£'000 | Employee Benefit Trust reserve £'000 | Share-based payment reserve £'000 | Hedging reserve
£'000 | Retained earnings
£'000 | Total equity
£'000 |
As at 1 August 2019 | 205 | 2 | (1,649) | 529 | 1,238 | 11,227 | 11,552 |
Profit for the period | - | - | - | - | - | 4,698 | 4,698 |
Foreign currency translation | - | - | - | - | - | (15) | (15) |
Cash flow hedging movement | - | - | - | - | (1,581) | - | (1,581) |
Total comprehensive income for the period | - | - | - | - | (1,581) | 4,683 | 3,102 |
Transactions with shareholders: |
|
|
|
|
|
|
|
Dividends payable | - | - | - | - | - | (2,307) | (2,307) |
Share-based payments | - | - | - | 174 | - | - | 174 |
As at 31 January 2020 | 205 | 2 | (1,649) | 703 | (343) | 13,603 | 12,521 |
| Share capital
£'000 | Share premium
£'000 | Employee Benefit Trust reserve £'000 | Share-based payment reserve £'000 | Hedging reserve
£'000 | Retained earnings
£'000 | Total equity
£'000 |
As at 1 August 2019 | 205 | 2 | (1,649) | 529 | 1,238 | 11,227 | 11,552 |
Profit for the period | - | - | - | - | - | 6,615 | 6,615 |
Foreign currency translation | - | - | - | - | - | (8) | (8) |
Cash flow hedging movement | - | - | - | - | (2,199) | - | (2,199) |
Total comprehensive income for the period | - | - | - | - | (2,199) | 6,607 | 4,408 |
Transactions with shareholders: |
|
|
|
|
|
|
|
Dividends payable | - | - | - | - | - | (2,307) | (2,307) |
Purchase of own shares | - | - | (506) | - | - | - | (506) |
Share-based payments | - | - | - | 267 | - | - | 267 |
As at 31 July 2020 | 205 | 2 | (2,155) | 796 | (961) | 15,527 | 13,414 |
Consolidated Condensed Cash Flow Statement
|
| 6 months ended £'000 | 6 months ended £'000 | Year ended 31 Jul 2020 £'000 |
Net cash flow from operating activities |
|
|
|
|
Profit for the period Adjustments for: |
| 5,715 | 4,698 | 6,615 |
Finance costs |
| 277 | 342 | 753 |
Income tax expense Depreciation and impairment Amortisation (Profit)/ loss on disposal of non-current assets Movements in derivative financial instruments Share-based payments Income taxes paid
Working capital adjustments (Increase)/ decrease in trade and other receivables Increase in trade and other payables |
| 1,446 766 6 (3) (435) 81 (1,269)
247 (5,326)
5,263 | 1,323 706 6 - (262) 174 (1,491)
2,270 (1,631)
619 | 1,747 1,417 12 18 324 267 (2,255)
4,377 150
2,339 |
Net cash from operations |
| 6,768 | 6,754 | 15,764 |
Cash flows used in investing activities Purchase of intangible assets Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment |
|
(20) (802) 3 |
- (309) 11
|
- (601) 12
|
Net cash used in investing activities |
| (819) | (298) | (589) |
Cash flows used in financing activities Purchase of own shares Proceeds from borrowings Repayment of borrowings Principal paid on lease obligations Debt issue costs paid Dividends paid Interest paid |
|
- 221 (225) (334) (44) (3,089) (179) |
- - (3,234) (425) (215) (2,307) (268) |
(506) - (10,439) (773) (240) (2,307) (698) |
Net cash used in finance activities |
| (3,650) | (6,449) | (14,963) |
Net increase in cash and cash equivalents Cash and cash equivalents brought forward Exchange losses on cash and cash equivalents |
|
2,299 329 (4) |
7 122 (5) |
212 122 (5) |
Cash and cash equivalents carried forward |
| 2,624 | 124 | 329 |
|
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