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Unaudited results for the half year ended 31 July 2017 ('the period' or 'H1 2018')

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Financial Highlights

  • Revenue increased 13% to £36.2m (H1 2017: £32.1m) reflecting strong growth from the Niche Pharmaceuticals division ('Niche')
  • Adjusted EBITDA increased 23% to £5.7m (H1 2017: £4.7m)
  • Niche transformed, contributing 28% of Group adjusted EBITDA (before central costs) at £1.8m (H1 2017: loss of £0.2m)
  • Statutory operating profit increased 74% to £3.6m (H1 2017: £2.1m)
  • Net debt reduced to £11.9m (H1 2017: £23.8m)

Key developments

  • Initial phase of strategy to focus and simplify the business completed following disposal of Total Medication Management Services Limited trading as Biodose Services ('Biodose Services')
  • Licensed product portfolio performing very well with Glycopyrronium Bromide Oral Solution 1mg/5ml ('Glyco') outperforming expectations and for which an indication extension is being progressed
  • Increased confidence in deliverability and value of the product pipeline
  • Partnerships established with two global pharmaceutical businesses to commercialise generic products in the UK
  • Progress made with the first export of licensed product into the Middle East
  • Strong expressions of interest received in international partnership opportunities
  • Hospital revenue growth in the Specials division ('Specials') balanced by regulatory and pricing pressure in unlicensed specials supplied to community pharmacies
  • Post the period end a non-binding indicative proposal made by Clinigen Group plc regarding a possible offer for the Group.

Chris Rigg, CEO of Quantum, said: "I am very pleased with the strategic progress we have made in the period and the Group has good momentum going into the second half of the year. The benefits of our simplification strategy are clear to see in a strong set of results that demonstrate the substantial increase in the profitability of our business. The next steps of our strategic plan are underway with a focus on delivering the current pipeline, maximising the value in our licensed product portfolio and exploiting international opportunities. I am confident in the future prospects of the Group."

A conference call for analysts will be held at 9.30 am on the day of the results; for analysts wishing to join the conference call, please contact:

Buchanan
020 7466 5000
quantumpharma@buchanan.uk.com

All figures for continuing operations unless stated otherwise.
A list of definitions of non-GAAP measures and references to reconciliations to GAAP measures are included at the end of this document.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

As a result of rounding throughout this announcement it is possible that tables may not cast and change percentages may not calculate precisely.

 

Chief Executive's review

I am pleased to report that the Group has made strong progress both financially and strategically during the period. Group adjusted EBITDA has increased 23% to £5.7m as a result of the strategic actions we have taken. The performance of Niche in particular has been transformed, contributing £1.8m of adjusted EBITDA in the period, 28% of Group adjusted EBITDA (before central costs), compared to a reported £0.2m loss in H1 2017. As a focused and simplified business we now benefit from a higher quality of earnings and we expect our adjusted EBITDA margin to continue to grow over the medium term, as we expand our portfolio of licensed products.

Our strategic plan has progressed more quickly than we envisaged at the time that the new Board was appointed in October 2016, when the Group faced a number of challenges. In approximately nine months we have succeeded in simplifying the Group's business model, which is now focused on our core Specials and Niche divisions and a reprioritised development pipeline. Key steps included the closure of our loss making NuPharm operation, the sale of Biodose Services and a significant strengthening of the Group's balance sheet.

Despite the market for unlicensed specials being mature, and experiencing pricing and prescribing pressure from the NHS, our market-leading Specials division continues to be cash-generative, profitable and central to our unlicensed-to-licensed ('UL2L') strategy.

Our strategy is to be first to license the top specials in the UK in order to defend and grow our market position. Over the next 24-36 months we expect to drive significant growth through the development of the bulk of our UK pipeline and at the same time deliver better value to the NHS provided that we are successful in being first to market. The licensing strategy has already driven transformational performance in the Niche division within the period, and the Group is well-positioned to maximise its potential in the UK and also to explore international markets where we aim to leverage the global UL2L opportunity.

Portfolio update

The pipeline currently contains over 35 product developments, of which over 70% are UL2L opportunities. As it progresses through the various stages of development, our confidence in the deliverability and value of the pipeline is increasing.
We have launched a number of products during the period, the most financially material of which were Gabapentin Oral Solution 50mg/ml and Acetylcysteine 200mg sachets, which have performed very well since commercial launch.
The Group will also shortly make the licence submission to the MHRA for the first strength of the largest product in our pipeline by market potential. If we succeed in being first to market with a licence for this product it would be a significant step for the Group. This is a complex development and registration process and as such the precise timing of an approval will be difficult to predict.

Aside from managing the progress of active developments, we are also focusing on maximising the lifecycle of our launched products. For example, we began work during the period to extend the indication of Glyco for paediatric use, a move which will defend and extend the market for this product.

We have entered into agreements with two global pharmaceutical businesses for the UK out-licensing of Trazodone1 and Memantine2. These agreements are blueprints for the type of partnership we are pursuing in order to commercialise selected generics in our portfolio, where other businesses are better placed to take them to market and accelerate our access to a meaningful return. In these cases our partners offer strong presence in these respective markets supported by large and established sales teams.

International opportunity

The Board believes that a significant opportunity exists to replicate our UL2L business model internationally over the medium term. Access to data and distribution channels will be critical to the successful execution of this part of our strategy, just as it has been for our UK programme. The rapid progress made in simplifying the business and the resultant performance benefits has allowed us to initiate this strategy ahead of plan, and we are in discussions with a number of potential partners across several targeted territories. We recognise, however, that it is important that the business does not rush this next phase of its evolution and chooses the right international partnership routes to maximise shareholder value.

Possible offer

On 16 August 2017, the Board announced that it had received an indicative proposal from Clinigen Group plc ('Clinigen') regarding a possible offer for the Company to be satisfied through a combination of new ordinary shares in Clinigen and cash. Discussions are ongoing and we will update shareholders on any further developments as appropriate. In the meantime, shareholders are reminded that the proposal from Clinigen is non-binding and is subject to material preconditions, including customary due diligence. As a result, it is emphasised that there can be no certainty that an offer will be made for the Company, nor as to the terms on which any offer may be made.

Summary and outlook

I am very pleased with the strategic progress we have made in the period and the Group has good momentum going into the second half of the year. The benefits of our simplification strategy are clear to see in a strong set of results that demonstrate the substantial increase in the profitability of our business. The next steps of our strategic plan are underway with a focus on delivering the current pipeline, maximising the value in our licensed product portfolio and exploiting international opportunities. I am confident in the future prospects of the Group.

1 Oral solution 50mg/5ml and 100mg/5ml
2 Soluble tablets 10mg, 20mg and titration pack

Divisional Review

Niche Pharmaceuticals division ('Niche')

Niche delivered a strong first half performance having benefited from the strategic steps to increase focus and simplify operations that were taken during the second half of last year. Revenue grew 129% to £5.3m (H1 2017: £2.3m) and now accounts for 15% of Group revenue (H1 2017: 7%). This advance was primarily driven by the growth in Glyco during the period in addition to contributions from a number of other products launched during H1 2018.

Adjusted EBITDA was £1.8m (H1 2017: £0.2m loss), which was a transformational performance compared to the modest loss the division delivered in the same period last year. The main contributions to this transformation were the growth in licensed product sales and the benefits of a reduced cost base following the actions to eliminate the cost of supporting underperforming products during H2 2017.

The division's significant improvement in reported profitability has been achieved despite a fall in the proportion of costs being capitalised as the number of launched products grows and an increasing share of management time is spent on supporting their commercialisation.

The division launched the following licensed products during the period:

  • Folic Acid 1mg/ml Oral Solution (prevention of neural tube defects and folic acid deficiency) in February 2017;
  • Acetylcysteine 200mg sachets (mucolytic for respiratory disorders) in March 2017;
  • Levothyroxine Oral Solution (for hyperthyroidism) in 25mcg/5ml, 50mcg/5ml and 100mcg/5ml strengths in April 2017; and
  • Gabapentin Oral Solution 50mg/ml (for the treatment of epilepsy and neuropathic pain) in May 2017.

The division also demonstrated success in its strategy to commercialise selected generic products in the UK through partnerships with two global pharmaceutical companies for the out-licensing of Trazodone and Memantine.
In each case the agreement recognises the ability of the selected partner to support and market the product in the UK through its established sales and marketing infrastructure, which we believe will ensure greater penetration and financial returns from these products.

Niche has made early progress with the first exports of licensed product into the Middle East during the period. The division has also begun discussions with a number of global pharmaceutical businesses aimed at establishing partnerships for international expansion.

Specials division ('Specials')

Specials continues to perform reliably against a backdrop of increasing competitive and regulatory pressure. Revenue increased 4% to £30.9m (H1 2017: £29.8m), reflecting the growth in unlicensed special sales into hospitals and the continuing success in meeting temporary supply shortages of licensed medicines.

Adjusted EBITDA contracted by 14% to £4.7m (H1 2017: £5.5m), which partly reflects an increase in the cost of customer retention that has been driven by growing competition amongst specials providers to win new business, and absorption of some shared overhead following the closure of NuPharm.

The division's market-leading manufacturer and supplier of specials into the pharmacy and wholesale sectors, Quantum Pharmaceutical ('QPL'), experienced some softness early in the period due to a shift in sales mix towards tariff lines from non-tariff lines. QPL has, however, successfully reinforced its market-leading position with the renewal of two long-term exclusive supply agreements during the period:

  • Bestway Panacea Healthcare Limited (trading as Well Pharmacy) - two-year agreement from March 2017; and
  • Phoenix Healthcare Distribution Limited - three-year agreement from April 2017.

Along with the renewal of AAH Pharmaceuticals for a term of five years in March 2016, QPL now has long term agreements with its three largest customers. The renewal of these key agreements is important in ensuring QPL remains resilient in the face of the evolving regulatory and competitive specials landscape whilst the Group pursues its UL2L strategy for the major specials.

UL Medicines ('ULM'), the division's supplier of specials into hospitals, delivered a good performance with revenue growth of almost 10%. ULM experienced growth in hospital volumes driven by batch and bespoke medicine demand, in addition to benefiting from temporary supply opportunities due to shortages of licensed medicines. The business continues to consolidate its position as a leading supplier of unlicensed imported medicines into the NHS.

Recognising the maturity of the market in which it operates, Specials is focusing on a number of initiatives to drive operational efficiencies and margin improvement. Many of these initiatives centre on improvements to the Group's ERP system to leverage the benefits of technology in streamlining and systemising a variety of processes.

 

Chris Rigg
Chief Executive Officer
21 August 2017

 

Chief Financial Officer's review

The Group's financial results report on a simplified business comprising two operating divisions of Specials and Niche Pharmaceuticals ('Niche') following the discontinuance of the Medication Adherence ('MA') division during the period. The progress that the Group has made in respect of its strategic plan is evidenced by the improvement in financial performance during the period.

All figures in this section refer to continuing operations unless otherwise stated.

Group performance

The Group performance is summarised in the following measures:

  • Revenue increased by 13% to £36.2m (H1 2017: £32.1m)
  • Gross profit increased by 10% to £14.3m (H1 2017: £13.1m)
  • Adjusted EBITDA increased by 23% to £5.7m (H1 2017: £4.7m)
  • Operating profit increased by 74% to £3.6m (H1 2017: £2.1m)
  • Capitalised development expenditure of £1.0m was incurred (H1 2017: £2.3m)
  • Net debt reduced to £11.9m (H1 2017: £23.8m)

Revenue

REVENUE BY DIVISION (£m) H1 2018 H1 2017 FY 2017
Specials 30.9 29.8 61.4
Niche Pharmaceuticals 5.3 2.3 4.9
Group 36.2 32.1 66.3

Group revenue grew by 13% to £36.2m (H1 2017: £32.1m), primarily as a result of the revenue growth of £3.0m delivered by the Niche division. Its portfolio of licensed products has grown during the period and it has also benefited from a whole period revenue contribution from product launches prior to the beginning of the period. The balance of the Group's revenue growth of £1.1m is in the Specials division with the hospital sector in particular providing the main component of this growth.

The Specials division operates in a market where some products are subject to regulated pricing. In the early part of the period there was also evidence of a shift from non-tariff products to lower priced tariff products. Despite these challenges, however, revenue in the division increased by 4% through growth in our hospital and aseptics compounding businesses.

The Niche division launched Glycopyrronium Bromide Oral Solution 1mg/5ml ('Glyco') in the UK in August 2016, its first UL2L product with meaningful volume. Within the period to 31 July 2017 Glyco sales provide a full six month revenue contribution whereas the comparable prior period does not include any revenue for Glyco due to the timing of the launch in August 2016. Additional products have also been launched during the period and have provided incremental revenues albeit it not for the full period.

Gross profit

The Group's reported gross margin has stepped up considerably compared to the gross margin reported previously when Biodose Services homecare business was part of the Group's continuing operations. The disposal of Biodose Services has brought visibility to a simpler business with higher quality earnings as evidenced by an underlying gross margin of c40% that was previously diluted by a high turnover low margin homecare business.

The Group's gross profit has increased by 10% to £14.3m (H1 2017: £13.1m). This is due to an increase of £2.0m in the Niche division due in the main to the performance of Glyco since its launch in August 2016 offset by a reduction of £0.8m in the Specials division primarily due to the pricing pressure and shift from  non-tariff to tariff prescribing.

Within the continuing operations the Niche division's products provide a higher margin revenue stream than the Specials division products do as a whole. The Niche division's increase in the proportion of Group revenue in this period has been offset to some extent the mix issues experienced within the Specials division.

Adjusted EBITDA

ADJUSTED EBITDA BY DIVISION (£m) H1 2018 H1 2017
Specials 4.7 5.5
Niche Pharmaceuticals 1.8 (0.2)
Group costs (0.8) (0.6)
Group adjusted EBITDA 5.7 4.7

Adjusted EBITDA increased to £5.7m (H1 2017: £4.7m) after adjusting for depreciation, amortisation, share based payments and deferred consideration charge. The increase is as a result of the Niche division adjusted EBITDA improving by £2.0m to £1.8m (H1 2017: loss of £0.2m) for the period. The reorganisation of this division in the prior year led to a reduced cost base and refocused activity on UL2L and selected niche generic products that had routes to market that the Group was capable of optimising. The combined benefits of these actions is evident in the improvement in the Niche division adjusted EBITDA.

RECONCILIATION TO OPERATING PROFIT (£m) H1 2018 H1 2017
Group adjusted EBITDA 5.7 4.7
Intangible amortisation (0.7) (0.4)
Depreciation (0.4) (0.5)
Deferred consideration (Lamda) (0.4) (1.0)
Share based payments (0.6) (0.3)
Other exceptional costs - (0.4)
Group statutory operating profit 3.6 2.1

The only non-recurring item in the period is the expected final charge of £0.4m (H1 2017: £1.0m) relating to the deferred consideration for the Lamda acquisition made in April 2015. Share based payments have increased to £0.6m (H1 2017: £0.3m) during the period reflecting the full year effect of prior year option grants and additional option grants during the period.

Discontinued operations

Following an orderly closure plan in the previous financial year NuPharm Laboratories Limited ("NuPharm") was placed into administration on 26 April 2017. NuPharm's financial results are included within the losses from discontinued operations in the prior period's consolidated income statement as it represented a separate major line of business for the Group. NuPharm was not active in the current period and as such is not included within current period discontinued operations.

During the period the Group disposed of Total Medication Management Services Limited (trading as Biodose Services) which represented the main component of the MA division and as a result of this disposal the MA division has been discontinued.

Biodose Services has been classified as a discontinued operation in the current period and the prior period's financial results have also been restated on this basis.

Profit (loss) before tax

RECONCILIATION TO PROFIT FOR THE PERIOD (£m) H1 2018 H1 2017
Group statutory operating profit 3.6 2.1
Net financing expense (0.4) (0.5)
Share of profit of equity-accounted investees, net of tax 0.1 0.1
Taxation (0.3) 0.1
Profit for the period - continuing operations 3.0 1.8
Loss from discontinued operations (0.2) (0.8)
Profit for the period 2.8 1.0

The Group recorded a profit for the period of £2.8m (H1 2017: £1.0m) comprising profit from continuing operations of £3.0m (H1 2017: £1.8m) and losses from discontinued operations of £0.2m (H1 2017: £0.8m). The statutory profit in the period from continuing operations includes only one non-operational charge relating to the Lamda deferred consideration which was expected. The absence of a number of exceptional items in the consolidated income statement supports the progress made in simplifying the business and its quality of earnings.

Earnings per share - continuing operations

MOVEMENT IN BASIC EARNINGS PER SHARE Pence
H1 2017 earnings per share 1.4
Change due to:  
   Profit for the period 0.9
   Weighted average number of shares in issue (0.5)
H1 2018 earnings per share 1.8

The table bridges the movement in earnings per share year-on-year, showing the value of the movement that is attributable to the change in earnings and the value that is due to a change in the number of ordinary shares in issue.

Operating cash flow

The Group generated net cash inflows from continuing operating activities of £4.6m (H1 2017: £6.8m) before accounting for a deferred consideration payment of £2.0m (H1 2017: £1.8m) in connection with the Lamda acquisition that reduced the current period cash inflows to £2.6m (H1 2017: £5.0m).

Working capital absorption during the period of £1.2m (excluding the movement on the Lamda deferred consideration liability of £1.6m) is primarily reflected in an increase in receivables as a result of revenue growth.

During the period the Group's capitalised development expenditure reduced to £1.0m (H1 2017: £2.3m) despite the Group's product pipeline continuing to be developed at the same rate. This reduction reflects a number of factors including, the internal cash cost base from which capitalisation was sourced being reduced, a more stringent capitalisation policy being applied and the timing of third party costs associated with developments being back end weighted.

Discontinued operations incurred net cash outflows from operating activities of £0.7m and net cash inflows relating to the proceeds on disposal (after working capital adjustments) of £0.5m resulting in net cash outflow of £0.2m (H1 2017: £1.3m) from discontinued activities.

Net debt and banking facilities

NET DEBT (£m) H1 2018 H1 2017 FY 2017
Cash and cash equivalents 7.7 5.6 7.9
Term loan (19.8) (22.8) (21.2)
Revolving credit facility - (7.0) -
Unamortised loan issue costs 0.2 0.4 0.3
Net debt 11.9 23.8 13.0

Net debt of £11.9m reduced by £1.1m during the period from the £13.0m reported at 31 January 2017. This reduction was achieved after discharging a £2.0m payment with respect to the final element of the deferred consideration of the Lamda acquisition completed in April 2015.

The net debt comprises borrowings net of unamortised loan issue costs of £19.6m (H1 2017: £29.4m) and cash and cash equivalents of £7.7m (H1 2017: £5.6m) and represents just over 1.0 times annualised adjusted EBITDA.

The Group has banking facilities with RBS and Lloyds that provide overall debt facilities of £35.0m comprising a £25.0m term loan plus £10.0m revolving credit facility, which was undrawn during the period.

Dividend

The Board has decided not to declare a dividend in respect of this period.

 

Gerard Murray
Chief Financial Officer
21 August 2017

 

Condensed Consolidated Income Statement
for period ended 31 July 2017

  Note (Unaudited)
6 months
ended
31 July 2017
(Unaudited)
6 months
ended
31 July 2016
(Audited)
Year ended
31 January
2017
    £000 £000 £000
Continuing operations        
Revenue 2 36,203 32,075 66,337
Cost of sales   (21,883) (19,011) (41,251)
         
Gross profit   14,320 13,064 25,086
Distribution expenses   (1,056) (1,168) (2,290)
Administrative expenses   (9,692) (9,841) (32,348)
         
Operating profit (loss)   3,572 2,055 (9,552)
         
Financial expenses   (370) (500) (1,150)
         
Net financing expense   (370) (500) (1,150)
         
Share of profit of equity-accounted investees, net of tax   59 79 145
         
Profit (loss) before tax 2 3,261 1,634 (10,557)
Taxation   (296) 155 1,745
         
Profit (loss) for the period from continuing operations   2,965 1,789 (8,812)
         
Discontinued operations        
Loss for the period from discontinued operations 3 (183) (827) (13,954)
         
Profit (loss) for the period   2,782 962 (22,766)
         
Basic and diluted earnings per share attributed to equity shareholders of the Company        
Basic (p) 4 1.7 0.8 (16.9)
Diluted (p) 4 1.5 0.8 (16.9)
Basic (p) - continuing operations only 4 1.8 1.4 (6.5)
Diluted (p) - continuing operations only 4 1.6 1.4 (6.5)
Basic (p) - discontinued operations only 4 (0.1) (0.6) (10.4)
Diluted (p) - discontinued operations only 4 (0.1) (0.6) (10.4)

 

Condensed Consolidated Statement of Comprehensive Income
for period ended 31 July 2017

  (Unaudited)
6 months
ended 31 July
2017
(Unaudited)
6 months
ended 31 July
2016
(Audited)
Year ended
31 January
2017
  £000 £000 £000
       
Profit (loss) for the period 2,782 962 (22,766)
Other comprehensive income      
Items that are or may be recycled subsequently into profit or loss      
Foreign exchange translation differences 117 41 74
       
Other comprehensive income for the period, net of income tax 117 41                 74
       
Total comprehensive income (loss) for the period 2,899 1,003 (22,692)
       
Attributable to:      
Equity holders of the parent 2,899 1,003 (22,692)

 

Condensed Consolidated Balance Sheet
as at 31 July 2017

  Note (Unaudited)
31 July 2017
(Unaudited)
31 July 2016
(Audited)
31 January 2017
    £000 £000 £000
Non-current assets        
Property, plant and equipment   3,912 6,066 4,211
Intangible assets 5 57,916 80,331 59,493
Investments   - 105 -
    61,828 86,502 63,704
Current assets        
Inventories   3,471 3,972 3,985
Tax receivable   - 476 228
Trade and other receivables   12,689 13,009 14,965
Cash and cash equivalents 6 7,664 5,560 7,941
    23,824 23,017 27,119
Total assets   85,652 109,519 90,823
Current liabilities        
Other interest-bearing loans and borrowings 6 (2,880) (9,880) (2,880)
Tax payable   (32) - -
Trade and other payables   (14,413) (20,896) (22,433)
Provisions   (323) (1,022) (572)
    (17,648) (31,798) (25,885)
Non-current liabilities        
Other interest-bearing loans and borrowings 6 (16,639) (19,519) (18,080)
Other payables   - (21) -
Deferred tax liabilities   (1,052) (2,546) (244)
    (17,691) (22,086) (18,324)
         
Total liabilities   (35,339) (53,884) (44,209)
         
Net assets   50,313 55,635 46,614
Equity attributable to equity holders of the parent        
Share capital   16,912 12,500 16,912
Share premium   74,799 64,940 74,799
Consolidation reserve   (9,752) (9,752) (9,752)
Translation reserve   233 83 116
Other reserve   (21,726) (21,726) (21,726)
ESOP own share reserve   (484) (484) (484)
Merger reserve   8,742 8,742 8,742
Retained earnings   (18,411) 1,332 (21,993)
Total equity   50,313 55,635 46,614

 

Condensed Consolidated Statement of Changes in Equity

  Share
capital
Share
premium
Consolidation
reserve
Translation
reserve
Other
reserve
ESOP own
share reserve
Merger
reserve
Retained
earnings
Total
equity
  £000 £000 £000 £000 £000 £000 £000 £000 £000
                   
                 
Balance at 1 February 2017 16,912 74,799 (9,752) 116 (21,726) (484) 8,742 (21,993) 46,614
                   
Total comprehensive income for the period                  
Profit for the period - - - - - - - 2,782 2,782
                 
Other comprehensive income - - - 117 - - - - 117
                   
Total comprehensive income for the period - - - 117 - - - 2,782 2,899
                   
Transactions with owners, recorded directly in equity                  
Equity-settled share based transactions - - - - - - - 800 800
                   
Total contributions by and distributions to owners - - - - - - - 800 800
                   
Balance at 31 July 2017 16,912 74,799 (9,752) 233 (21,726) (484) 8,742 (18,411) 50,313

 

Condensed Consolidated Statement of Changes in Equity

  Share
capital
Share
premium
  Consolidation
reserve
Translation
reserve
Other
reserve
ESOP own
share reserve
Merger
reserve
Retained
earnings
Total
equity
  £000 £000 £000 £000 £000 £000 £000 £000 £000
                   
                 
Balance at 1 February 2016 12,500 64,940 (9,752) 42 (21,726) (484) 8,742 1,247 55,509
                   
Total comprehensive income for the period                  
Profit for the period - - - - - - - 962 962
                 
Other comprehensive income - - - 41 - - - - 41
                   
Total comprehensive income for the period - - - 41 - - - 962 1,003
                   
Transactions with owners, recorded directly in equity                  
Equity-settled share based transactions - - - - - - - 373 373
Dividend payable - - - - - - - (1,250) (1,250)
                   
Total contributions by and distributions to owners - - - - - - - (877) (877)
                   
Balance at 31 July 2016 12,500 64,940 (9,752) 83 (21,726) (484) 8,742 1,332 55,635

Condensed Consolidated Cash Flow Statements
for period ended 31 July 2017

 

(Unaudited)
6 months
ended
31 July
2017
(Unaudited)
6 months
ended
31 July
2016
(Audited)
Year
ended
31 January
2017
  £000 £000 £000
Cash flows from operating activities      
Profit (loss) for the period 2,965 1,789 (8,812)
Adjustments for:      
Depreciation, amortisation and impairment 1,147 857 12,883
Financial expense 370 500 1,150
Share of profit of equity-accounted investees (59) (79) (145)
Loss on sale of property, plant and equipment - (2) -
Equity settled share-based payment expenses 653 333 718
Taxation 296 (155) (1,745)
  5,372 3,243 4,049
(Increase) decrease in trade and other receivables (1,158) 1,167 96
(Increase) decrease in inventories (35) 385 200
(Decrease) increase in trade and other payables (1,677) 68 646
(Decrease) increase in provisions (192) 250 44
  2,310 5,113 5,035
Interest paid (433) (442) (929)
Tax received 772 314 546
Net cash inflow from continuing operating activities 2,649 4,985 4,652
Net cash outflow from operating activities in discontinued operations (663) (1,020) (768)
Net cash inflow from operating activities 1,986 3,965 3,884
Cash flows from investing activities      
Acquisition of property, plant and equipment (219) (504) (705)
Capitalised development expenditure (982) (2,318) (4,035)
Acquisition of other intangible assets (26) (92) (212)
Net cash outflow from investing activities in continuing operations (1,227) (2,914) (4,952)
Net cash inflow (outflow) from investing activities in discontinued operations 464 (231) (252)
Net cash outflow from investing activities (763) (3,145) (5,204)
Cash flows from financing activities      
Proceeds from the issue of share capital (net of expenses) - - 14,271
Proceeds from new loan - 2,000 -
Repayment of borrowings (1,500) (1,500) (8,000)
Dividends paid - - (1,250)
Net cash (outflow) inflow from financing activities in continuing operations   (1,500) 500 5,021
Net cash flow from financing activities in discontinued operations - - -
Net cash (outflow) inflow from financing activities (1,500) 500 5,021
Net (decrease) increase in cash and cash equivalents (277) 1,320 3,701
Cash and cash equivalents at start of period 7,941 4,240 4,240
Cash and cash equivalents at period end 7,664 5,560 7,941

 

Notes

Notes to the Financial Statements are available in the printable PDF version

 

Page last updated: 22 August 2017

 
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