- Part 2: For the preceeding part double click [ID:nRSb2991Oa]
At 1 May 2009 £000 Exchange gains/(losses)£000 Cash Flow £000 At 30 April 2010 £000
Funds reconciliation
Cash and bank 1,311 (103) 5,448 6,656
Short term deposits 6,200 - (6,200) -
Cash and cash equivalents 7,511 (103) (752) 6,656
Other loans (32) - 32 -
Bank loans (3,782) - 167 (3,615)
Debt (3,814) - 199 (3,615)
Net funds 3,697 (103) (553) 3,041
NOTES TO THE PRELIMINARY RESULTS ANNOUNCEMENT
1. BASIS OF PREPARATION
The financial information contained within this preliminary report has been prepared using accounting policies consistent
with International Financial Reporting Standards (IFRS) as adopted by the EU and applying at
30 April 2010. The information in this preliminary statement has been extracted from the financial statements for the year
ended 30 April 2010 and as such, does not contain all the information required to be disclosed in the financial statements
prepared in accordance with IFRS.
The Group's Annual Report for the year ended 30 April 2010 has yet to be delivered to the Registrar of Companies. The
auditors have reported on these accounts. Their report was not qualified and did not contain a statement under Section 498
of the Companies Act 2006 . The figures for the year ended 30 April 2010 and 2009 do not constitute statutory accounts
within the meaning of section 434 of the Companies Act 2006.
The comparative figures for the year ended 30 April 2009 were derived from the statutory accounts for that year which have
been delivered to the Registrar of Companies and have been restated for appropriate adjustments in respect of a prior year
overstatement of revenue, profit before tax, and trade and other receivables (see note 7). Those accounts received an
unqualified audit report. The preliminary announcement was approved by the Board on 25 June 2010 and authorised for issue
on 28 June 2010.
2. SEGMENTAL ANALYSIS OF REVENUE AND OPERATING PROFIT
Year ended 30 April 2010 £000 Year ended 30 April 2009(restated) £000
Revenue
MASS 21,484 20,622
SCS 26,398 29,208
SEA 30,247 26,904
78,129 76,734
Adjusted Operating Profit
MASS 3,549 2,832
SCS 90 1,506
SEA 1,560 3,124
Central costs (1,090) (1,199)
4,109 6,263
Amortisation of other intangible assets (595) (540)
Exceptional items (624) (674)
Operating Profit 2,890 5,049
The above segmental analysis is the primary segmental analysis of the Group.
The previously reported results for the year ended 30 April 2009 have been restated for a prior year overstatement at SCS
of £1,837,000 in trade and other receivables. This restatement has been adjusted by a reduction in SCS revenue from
£31,045,000 to £29,208,000 and SCS adjusted operating profit from £3,343,000 to £1,506,000. The details of the adjustment
to the consolidated income statement and balance sheet is shown in note 7.
All revenue and adjusted operating profit is in respect of continuing operations.
The operating profit as reported under IFRS is reconciled to the adjusted operating profit as reported above by the
exclusion of exceptional items and amortisation of other intangible assets.
The adjusted operating profit is presented in addition to the operating profit to provide the trading performance of the
Group, as derived from its constituent elements on a consistent basis from year to year.
The adjusted operating profit is stated after charging £259,000 in respect of share-based payments (year ended 30 April
2009: £184,000) and after charging £231,000 of loss in respect of marking forward foreign exchange contracts to market at
30 April 2010 (year ended 30 April 2009: credit of £47,000).
3. EXCEPTIONAL ITEMS
Year ended30 April 2010£000 Year ended 30 April 2009
£000
Restructuring at SCS 310 -
Restructuring at SEA 291 -
Relocation of MASS's operation 148 -
Cost of acquisition of Abacus EW 75 -
Charge in respect of withdrawing from the Group's joint venture AGS - 674
Profit on sale of AGS's business (200) -
624 674
All in respect of continuing operations.
4. TAX EXPENSE
Year ended30 April 2010£000 Year ended 30 April 2009(restated)£000
Corporation tax:
Prior year 135 -
Current year 961 785
1,096 785
Deferred taxation (639) 73
457 858
The current year tax charge includes a credit of £210,000 in respect of continuing exceptional items.
5. EARNINGS PER SHARE
The earnings per share are calculated by dividing the earnings for the year by the weighted average number of ordinary
shares in issue as follows:
Year ended30 April 2010 £000 Year ended 30 April 2009(restated)£000
Earnings
Basic and diluted earnings 2,291 3,759
Exceptional items 414 674
Amortisation of other intangible assets 595 540
Share of results of joint ventures - 224
Normalised basic and diluted earnings 3,300 5,197
Number Number
Weighted average number of shares
For the purposes of basic earnings per share 40,727,969 40,491,561
Share options 55,361 310,247
For the purposes of diluted earnings per share 40,783,330 40,801,808
Year ended30 April 2010 Pence Year ended30 April 2009(restated)
Pence
Earnings per share
Basic 5.63 9.28
Diluted 5.62 9.21
Adjusted earnings per share
Basic 8.10 12.83
Diluted 8.09 12.74
6. DIVIDENDS
The proposed final dividend for the year ended 30 April 2010 is 1.40 pence (year ended 30 April 2009: 1.20) per ordinary
share. This dividend will be payable 8 September 2010 to shareholders on the register at 6 August 2010.
The total paid and proposed dividend for the year ended 30 April 2010 is 2.05 pence per ordinary share: a cost of £836,000
(year ended 30 April 2009 1.75p per ordinary share: £709,000).
The charge for the year ended 30 April 2010 of £754,000 is the final dividend for the year ended 30 April 2009 paid
(£489,000) and the interim dividend for the year ended 30 April 2010 paid (£265,000).
7. PRIOR YEAR ADJUSTMENT IN RESPECT OF THE YEAR ENDED 30 APRIL 2009
As originally announced on 3 December 2009 and clarified on 18 March 2010, the Group had previously overstated its revenue
and profit before tax in its subsidiary SCS by £1,837,000.
The overstatement was identified as an overstatement of trade and other receivables.
Consolidated Income Statement As previously reported Restatement As restated
£000 £000 £000
Revenue 78,571 (1,837) 76,734
Cost of sales (54,001) - (54,001)
Gross profit 24,570 (1,837) 22,733
Administrative expenses (including amortisation of other intangible assets and exceptional items) (17,684) - (17,684)
Operating profit 6,886 (1,837) 5,049
Comprising:
Adjusted operating profit 8,100 (1,837) 6,263
Amortisation of other intangible assets (540) (540)
Exceptional items (674) (674)
Operating profit 6,886 (1,837) 5,049
Share of result of joint ventures (224) - (224)
Finance income 95 - 95
Finance costs (303) - (303)
Profit before tax 6,454 (1,837) 4,617
Income tax expense (1,372) 514 (858)
Profit for the year attributable to the equity shareholders of the parent 5,082 (1,323) 3,759
Earnings per share Pence Pence Pence
Basic 12.55 (3.27) 9.28
Diluted 12.46 (3.25) 9.21
Consolidated Statement of Financial Position As previously reported Restatement As restated
£000 £000 £000
Assets
Non-current assets
Goodwill 31,043 - 31,043
Other intangible assets 1,227 - 1,227
Property, plant and equipment 4,727 - 4,727
Deferred tax asset 266 - 266
37,263 - 37,263
Current assets
Inventories 359 - 359
Trade and other receivables 24,275 (1,837) 22,438
Derivative financial instruments 178 - 178
Cash and cash equivalents 7,511 - 7,511
32,323 (1,837) 30,486
Total assets 69,586 (1,837) 67,749
Liabilities
Current liabilities
Trade and other payables (16,164) - (16,164)
Current tax liabilities (1,507) 514 (993)
Other loans (32) - (32)
Derivative financial instruments (68) - (68)
Bank borrowings (3,167) - (3,167)
Provisions (1,528) - (1,528)
(22,466) 514 (21,952)
Non-current liabilities
Bank borrowings (615) - (615)
Deferred tax liability (920) - (920)
(1,535) - (1,535)
Total liabilities (24,001) 514 (23,487)
Net assets 45,585 (1,323) 44,262
Equity
Share capital 4,059 - 4,059
Share premium account 29,297 - 29,297
Hedge reserve (49) - (49)
Share option reserve 266 - 266
Retained earnings 12,012 (1,323) 10,689
Total equity attributable to the equity shareholders of the parent 45,585 (1,323) 44,262
8. PROVISIONS
Earn out in respect of the acquisition of MASS Restructuring at SCS Withdrawal from AGS Warranty and other contract related provisions Total
£000 £000 £000 £000 £000
At 1 May 2009 280 - 210 1,038 1,528
Utilised/released (280) - (122) (405) (807)
Charge to income statement - 105 (66) 1,705 1,744
Reclassification from trade and other payables - - - 101 101
At 30 April 2010 - 105 22 2,439 2,566
Due less than one year - 105 22 2,284 2,411
Due greater than one year - - - 155 155
- 105 22 2,439 2,566
The earn out in respect of MASS was settled 5 June 2009 at £280,000 (including costs) in cash.
The warranty and other contract related provisions are management's best estimates of contract related costs and
undertakings which are in addition to contract accruals.
The timing of these is uncertain but expected to be resolved within twelve months of the balance sheet date.
9. NET CASH GENERATED FROM OPERATING ACTIVITIES
Year ended30 April 2010£000 Year ended 30 April 2009(restated)£000
Profit for the year 2,291 3,759
Adjustments for:
Share of results of joint ventures - 224
Tax expense 457 858
Depreciation of property, plant and equipment 557 563
Amortisation of other intangible assets 595 540
Net finance costs/(revenue) 142 208
Share-based payment 259 184
Derivative financial instruments 231 (47)
Increase in provisions 1,318 612
Operating cash inflows before movements in working capital 5,850 6,901
Increase in inventories (288) (213)
Increase in receivables (399) (2,247)
(Decrease)/increase in payables (736) 3,541
(1,423) 1,081
Cash generated by operations 4,427 7,982
Tax paid (286) (408)
Interest paid (180) (303)
Net cash generated from operating activities 3,961 7,271
10. The financial information set out in the announcement does not constitute the company's statutory accounts
for the years ended 30 April 2010 or 2009. The financial information for the year ended 30 April 2009 is derived from the
statutory accounts for that year which have been delivered to the Registrar of Companies and which have been restated for a
prior year overstatement at SCS. The auditors reported on those accounts. Their report was unqualified and did not contain
a statement under section 498 of the Companies Act 2006. The statutory accounts for the year ended 30 April 2010 will be
delivered to the Registrar of Companies following the company's Annual General Meeting, to be held 2 September 2010. The
auditors have reported on these accounts. Their report was not qualified and did not contain a statement under Section 498
of the Companies Act 2006.
Copies of the Annual Report and accounts for the year ended 30 April 2010 will be posted to shareholders on 3 August 2010
and available on the Company's website (www.cohortplc.com) from that date.
This information is provided by RNS
The company news service from the London Stock Exchange