7 September 2021

 

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

THE PEBBLE GROUP PLC

("The Pebble Group", the "Group" or the "Company")

 

UNAUDITED HALF YEAR RESULTS 2021

Strong recovery with positive outlook

 

The Pebble Group, a leading provider of technology, services and products to the global promotional products industry, announces its unaudited results for the six months ended 30 June 2021 ("HY 21" or the "Period"), which demonstrate a swift recovery. With strong progress in HY 21, the Board is confident that performance will be at least in line with market expectations for the year ending 31 December 2021 ("FY 21").

 

Financials

 

Adjusted results	HY 21	HY 20	HY 19	FY 20
Revenue	£46.8m	£33.6m	£48.1m	£82.4m
Gross profit	£17.2m	£13.6m	£17.4m	£31.0m
Gross profit margin	36.8%	40.6%	36.1%	37.6%
Adjusted EBITDA1	£4.4m	£2.6m	£5.3m	£9.8m
Adjusted operating profit2	£2.6m	£1.2m	£4.2m	£6.8m
Adjusted profit before tax3	£2.4m	£0.9m	£0.7m	£6.1m
Underlying operating cash flow4	£(10.5)m	£(3.6)m	£3.0m	£7.2m
Net (debt) / cash5	£(4.2)m	£1.9m	£(63.7)m	£7.1m
Adjusted earnings per share6	1.08p	(0.05)p	(0.50)p	2.96p

 

Statutory results	HY 21	HY 20	HY 19	FY 20
Operating profit/(loss)	£2.2m	£0.9m	£(0.2)m	£5.7m
Profit/(loss) before tax	£1.9m	£0.6m	£(3.6)m	£5.0m
Basic profit/(loss) per share	0.85p	(0.18)p	(44.79)p	2.44p
Diluted profit/(loss) per share	0.84p	(0.18)p	(44.79)p	2.44p

 

1	Adjusted EBITDA means operating profit before depreciation, amortisation, share-based payments charge and exceptional items in note 4
2	Adjusted operating profit means operating profit before amortisation of acquired intangible assets, share-based payments charge and exceptional items
3	Adjusted profit before tax means profit before tax before amortisation of acquired intangible assets, share-based payments charge and exceptional items
4	Underlying operating cash flow is calculated as Adjusted EBITDA less movements in working capital, capital expenditure and lease payments excluding movements in transaction related accruals and payments in respect of acquisitions
5	Net (debt)/cash is calculated as cash and cash equivalents less borrowings (excluding lease liabilities)
6	Adjusted Earnings Per Share ("EPS") represents Adjusted Earnings meaning profit after tax before amortisation of acquired intangible assets, share-based payments charge and exceptional items divided by a weighted average number of shares

 

Group highlights and outlook 

·	The recovery in HY 21 has been strong with Group revenues at £46.8m being 39.3% ahead of HY 20 (£33.6m) and slightly lower than HY 19 (£48.1m)
·	Facilisgroup US Dollar ("USD") Annual Recurring Revenue ("ARR") was 27.0% ahead of HY 20 and 44.8% ahead of HY 19
·	Facilisgroup achieved Adjusted EBITDA margins of 54.6%, with further investment in people and technology, as we remain focused on our stated aspiration to grow ARR to $50m by the end of FY 24
·	Brand Addition revenues for FY 21 are expected to be well ahead of FY 20 and slightly ahead of FY 19, demonstrating its ability to win, grow and retain major client contracts
·	Cash outflow in HY 21 has supported the high value of Brand Addition Consumer Promotion revenue in HY 21 amplifying the normal in-year cycle. Working capital is reducing as expected as client receipts are collected to terms
·	Net debt at 6 September was £4.8m and we expect Net cash at 31 December 2021 to be ahead of previous market expectations at no less than £8.0m (31 December 2020: £7.1m)
·	The Board is very encouraged by the Group's performance in HY 21 and expects FY 21 to be at least in line with market expectations

 

Facilisgroup

 

·	FY 21 USD ARR growth over prior year is expected to be approaching 30%
·	190 Partners at 31 August 2021 with a further 7 contracted awaiting implementation
·	The increase in purchases through Preferred Suppliers is ahead of management expectations
·	H2 21 Gross Merchandise Value running at 136% of H2 20 and 141% of H2 19
·	New ecommerce solution launched in beta form with 51 Partners in early access

 

Brand Addition

 

·	Total FY 21 revenues expected to be well ahead of FY 20 and slightly ahead of FY 19
·	Significant growth in Consumer Promotions revenue expected in FY 21, compared to both FY 20 and FY 19
·	Growth in Corporate Programmes revenue expected in FY 21, compared to FY 20, supported by new business wins from FY 20 and recovery continues against FY 19
·	Total orders invoiced or received to be invoiced in 2021 at 31 August amounted to £81.8m, being 153% of 2020 (£53.4m) and 114% of 2019 (£71.3m)

 

Enquiries:

 

The Pebble Group plc Chris Lee, Chief Executive Officer Claire Thomson, Chief Financial Officer	+44 (0) 161 786 0415
Grant Thornton UK LLP (Nominated Adviser) Samantha Harrison / Harrison Clarke / Lukas Girzadas	+44 (0) 20 7184 4384
Berenberg (Corporate Broker) Chris Bowman / Jen Clarke / Arnav Kapoor	+44 (0) 20 3207 7800
Belvedere Communications (Financial PR) Cat Valentine Keeley Clarke	thepebblegrouppr@belvederepr.com +44 (0) 7715 769 078 +44 (0) 7967 816 525

 

About The Pebble Group plc - www.thepebblegroup.com 

 

The Pebble Group is a provider of technology, services and products to the global promotional products industry, comprising two differentiated businesses, focused on specific areas of the promotional products market:

 

Facilisgroup - www.facilisgroup.com

 

Facilisgroup focuses on supporting the growth of mid-sized Promotional Product businesses in North America by providing a technology platform, which enables those businesses to benefit from significant business efficiency and gain meaningful supply chain advantage from the ability to purchase from quality suppliers under preferred terms.

 

Brand Addition - www.brandaddition.com 

 

Brand Addition focuses upon providing promotional products and related services under contract to some of the world's most recognisable brands. Its largest contracts are valued in the millions of pounds with the products and services supplied being used for brand building, customer engagement and employee rewards. Working in close collaboration with its clients, Brand Addition designs products and product ranges, hosts client-branded global web stores and provides international sourcing and distribution solutions.

 

We categorise our revenues into two divisions, Corporate Programmes, that supports our clients' general marketing activities, and Consumer Promotions, that supports our clients in driving their own sales volumes.

 

A copy of the Half Year Results 2021 Investor Presentation will be available on the Company's website later today https://www.thepebblegroup.com/investors/results-reports-and-presentations/.

 

 

CHIEF EXECUTIVE OFFICER'S REVIEW

 

Overview

 

The focus during HY 21 has been the continued investment in our people and technology to support the excellent growth prospects of Facilisgroup, alongside demonstrating the ability of Brand Addition to recover quickly from the revenue reduction suffered in 2020. We have made good progress on these objectives.

 

Our teams across Asia, Europe and North America continue to be incredibly flexible and adapt quickly to support their colleagues, clients, Partners and suppliers. Their dedication and talent has resulted in our Group recovering strongly from the end-market demand challenges of 2020. The promotional products industry is recovering, albeit with disruption remaining within the supply chain which we expect to continue until at least Q2 22. Here again, our teams continue to lean on their experience, working with our suppliers for the long-term benefit of all stakeholders.

 

Against this backdrop, the Board is very encouraged by the Group's performance in HY 21.

 

In HY 21, Group revenue was £46.8m (HY 20: £33.6m, HY 19: £48.1m), generating Adjusted EBITDA of £4.4m (HY 20: £2.6m, HY 19: £5.3m) and Operating profit of £2.2m (HY 20: £0.9m, HY 19: £(0.2m)).

 

Below we summarise the results and progress of our businesses.

 

Facilisgroup

 

HY revenue and profit analysis Facilisgroup

 

	HY 21	HY 20	HY 19
Recurring revenue	£5.4m	£4.8m	£4.1m
Other revenue	£0.2m	£0.3m	£0.5m
Total revenue	£5.6m	£5.1m	£4.6m
Gross profit	£5.6m	£5.1m	£4.6m
Gross profit margin	100%	100%	100%
Adjusted EBITDA	£3.1m	£2.9m	£2.4m
Operating profit/(loss)	£2.2m	£2.3m	£(2.2m)

 

Our vision is to be the leading technology provider for the promotional products industry, using technology and services to propel forward the growth and efficiency of entrepreneurial distributors (Partners) and suppliers.

 

Our aspiration is to grow ARR to $50m by the end of 2024 through increasing user numbers and introducing new technology products into the promotional products industry.

 

We continue to be pleased with the progress made by the business. Total revenue in the Period has increased to £5.6m, 11.5% ahead of the same period in 2020 when measured in Sterling. Recurring revenue at $7.5m was encouragingly 27.0% ahead of HY 20, when measured in Facilisgroup's home currency of USD, and 44.8% ahead of HY 19.

 

We have made further investment in people and technology to support our aspirational growth plans. Alongside this investment, Facilisgroup delivered Adjusted EBITDA returns of 54.6% (HY 20: 57.8%, HY 19: 53.3%) and Operating profit of 39.2% (HY 20: 45.5%, HY 19: (48.5%)), demonstrating the highly profitable dynamics of the business model.

 

The number of Partners, a key value driver, has increased throughout the Period. Partner numbers today total 190 (31 December 2020: 175), with a further 7 contracted and awaiting implementation.

 

The Gross Merchandise Value (GMV) processed by Partners through Facilisgroup technology in the Period to 31 August 2021 was strong at $668m. This figure is comparable with HY 20, which included a small number of large value sales of personal protective equipment creating a spike in GMV.

 

To date in H2 21, GMV has been accelerating compared to prior years, running at 136% of H2 20 and 141% of H2 19, a positive reflection of the increasing Partner numbers and the recovering end markets of our Partners.

 

The fee structures within the business result in a very robust and predictable recurring revenue stream.

 

Our Management Fee (c.70% divisional income in FY 20) has grown in line with Partner numbers.

 

Our Marketing Fund (c.25% divisional income in FY 20) has benefited from an increase in the proportion of purchases made with Preferred Suppliers, which is returning towards FY 19 levels along with an underlying fee improvement from the delivery of additional efficiencies in the Preferred Supplier to Partner workflow.

 

As planned, our first ecommerce product, allowing for the easy implementation of online popup stores, was launched in beta form to our Partners in the Period. Uptake has been positive with 51 Partners utilising the product in early access.  The revenue impact from this product is expected to start from Q2 22.

 

Integration of this ecommerce platform, which includes the online popup store, into our existing order workflow software is now expected to be in Q2 22, as recent development time has been focused on enhanced functionality following Partner feedback. The launch of this product into the wider promotional products market is expected in late 2022.

 

In order to clearly articulate our expanded offering to our target markets within the North American promotional products industry, we have rebranded our order workflow product, upon which the business has traded to date, from @ease to Syncore and our new ecommerce platform will go to market under the brand Commercio.

 

From the above activities, we expect to meet our FY 21 aspirational milestones, as set out in our Audited Final Results 2020 announcement of 23 March 2021, and USD ARR growth to be approaching 30% in FY 21.

 

Brand Addition

 

HY revenue and profit analysis Brand Addition

 

	HY 21	HY 20	HY 19
Revenue	£41.1m	£28.5m	£43.6m
Gross profit	£11.6m	£8.6m	£12.8m
Gross profit margin	28.2%	30.0%	29.4%
Adjusted EBITDA	£2.5m	£0.4m	£3.3m
Operating profit/(loss)	£1.2m	£(0.7)m	£2.5m

 

Our vision is to be recognised as the supplier of choice for global brands that use creative merchandise as a key stakeholder engagement tool.

 

Our strategy is to grow revenues organically through long-term, contracted relationships, by expanding the spend of our existing clients, whilst attracting new client contracts.

 

Revenue for HY 21 has increased to £41.1m, being 144% of 2020 and 94.4% of 2019. This recovery over HY 20 and return towards HY 19 revenue reflects an excellent performance, underpinned by significant growth in our Consumer Promotions division (~40% FY 20 divisional sales) as existing clients have consolidated their spend across geographies using Brand Addition as a preferred and trusted supplier.

 

Gross profit decreased slightly in the Period, as expected, to 28.2% (HY 20: 30.0%, HY 19: 29.4%), as the business successfully continues to manage its clients through the supply chain challenges resulting from Brexit and global freight and labour disruption together with implementing two significant new business wins from 2020. Our medium term aim remains a 30% Gross profit target.

 

The costs between Gross profit and Adjusted EBITDA are predominately people related. These costs have increased from HY 20, when we utilised the UK Job Retention Scheme and were supported by our team taking temporary salary reductions. Neither of these reductions to costs have been applicable in HY 21.

 

The above resulted in Adjusted EBITDA returns of 6.1% (HY 20: 1.2%, HY 19: 7.5%) and Operating profit returns of 2.9% (HY 20: (2.4%), HY 19: 5.7%).

 

Looking to FY 21, total orders invoiced or received to be invoiced in 2021 at 31 August amounted to £81.8m, being 153% of 2020 (£53.4m) and 114% of 2019 (£71.3m) against FY 20 revenue of £72.6m and FY 19 revenue of £97.9m.

 

Through the normal order receipt to invoice cycle, the majority of our Consumer Promotion orders that will be invoiced in FY 21 have now been received. Therefore, the revenue in the remainder of the year will be generated primarily from our Corporate Programmes division, which is recovering towards 2019 levels.  Corporate Programme orders in the five weeks to the end of August were c.90% of the comparable period in 2019.

 

From the strong value of orders already received, alongside current activity, we expect FY 21 revenues in Brand Addition to be significantly ahead of FY 20 and slightly ahead of FY 19.

 

Added to the above, the business has continued to attract new client contracts which will positively impact sales in 2022.

 

Environmental, Social and Governance ("ESG")

 

We are pleased to announce that we will be publishing our first ESG Report in October 2021, which will set out the strategy and framework that underpins our approach. Details of how to access this report will be announced on publication.

 

Outlook

 

The highly recurring nature of the revenues at Facilisgroup and the value of orders received to date at Brand Addition lead the Board to be confident that FY 21 performance will be at least in line with market expectations.

 

We believe the prospects for the Group to be strong.

 

Christopher Lee

Chief Executive Officer

7 September 2021

 

 

CHIEF FINANCIAL OFFICER'S REVIEW

 

	HY 21	HY 20	FY 20
	Unaudited £'m	Unaudited £'m	Audited £'m
Revenue	46.8	33.6	82.4
Gross profit	17.2	13.6	31.0
Gross profit margin	36.8%	40.6%	37.6%
Adjusted EBITDA	4.4	2.6	9.8
Adjusted EBITDA margin	9.5%	7.6%	11.8%
Depreciation and amortisation	(2.0)	(1.7)	(3.5)
Share-based payment charge	(0.2)	-	-
Exceptional items	-	-	(0.6)
Operating profit	2.2	0.9	5.7
Net finance costs	(0.3)	(0.3)	(0.7)
Profit before tax	1.9	0.6	5.0
Tax	(0.5)	(0.9)	(0.9)
Profit/(Loss) for the Period	1.4	(0.3)	4.1
Weighted average number of shares	167,450,893	167,450,893	167,450,893
Adjusted EPS	1.08p	(0.05)p	2.96p
Basic EPS	0.85p	(0.18)p	2.44p

 

Revenue

 

Revenue for the Period to 30 June was £46.8m (HY 20: £33.6m), an increase of £13.2m (39.3%) compared to the same period in 2020. Of this increase, £12.6m relates to Brand Addition from growth in the Consumer Promotions division (£7.2m) and a recovery in the Corporate Programmes division (£5.4m). Facilisgroup total revenues increased £0.6m (11.5%) with the Sterling growth against prior year being reduced by the strength of Sterling against USD. Facilisgroup ARR growth when measured in its home currency of USD was 27.0%. This was achieved through increases in our Management Fees from additional Partner numbers and a growth in our Marketing Fund where we benefited from Partners returning towards normal purchasing patterns through our Preferred Suppliers and an underlying fee increase.

 

Gross profit

 

Gross profit as a percentage of revenue was 36.8% (HY 20: 40.6%). This largely reflects the impact of the increased weighting of Brand Addition sales as a proportion of the total Group, as the business recovers from the sales impact in 2020. In Brand Addition, there was also a 1.8 p.p.t reduction in margin as new business, which has lower than average initial margins, impacted the sales mix in the short term and the business navigating a period of increased costs associated with Brexit, freight rate pricing, and freight capacity challenges.

 

Adjusted EBITDA

 

Adjusted EBITDA was £4.4m (HY 20: £2.6m). The movement from HY 20 is made up as follows:

 

-	Facilisgroup £0.2m increase from incremental revenue net of the costs of investment in the team to support delivery of the 2024 recurring revenue aspirations;
-	Brand Addition £2.1m increase driven by £3.0m incremental sales volumes offset in part by £0.9m additional people costs as HY 20 included contributions or savings from the use of Government furlough or equivalent schemes, and temporary salary and bonus reductions; and
-	Central costs increased by £0.5m in the period, £0.1m from temporary salary savings in HY 20, the balance being incremental costs through the growth of the team and the Group's investment in ESG.

 

The Adjusted EBITDA margin increased to 9.5% (HY 20: 7.6%) as revenues in Brand Addition return towards 2019 levels.

 

Depreciation and amortisation

 

The total charge for the Period was £2.0m (HY 20: £1.7m) of which £1.1m (HY 20: £0.9m) related to the amortisation of intangible assets. This increase is in line with expectation and reflects the Group's continued investment in its technology.  £0.7m of the charge relates to depreciation on leases capitalised in accordance with IFRS 16, an increase of £0.2m on the previous year. Both increases reflect investment in the Group's infrastructure as it scales to meet its 2024 aspirations.

 

Share-based payments

 

The total charge for the Period under IFRS 2 "Share-based payments" was £0.2m (HY 20: nil). This charge related to the 2020 awards made under the 2019 Long Term Incentive Plan.

 

Operating profit

 

Operating profit for the Period was £2.2m (HY 20: £0.9m).

 

Taxation

 

The tax charge for the Period to 30 June was £0.5m (2020: £0.9m) and is based on full year Group expected tax rates for 2021 of c.25%. This is higher than the UK Corporation tax rate due to the proportion of Group profits earned overseas where the rates are higher than the UK.

 

Earnings per share

 

Adjusted weighted average earnings per share for the Period was 1.08p (HY 20: (0.05)p) reflecting the increase in Adjusted EBITDA for the Period as discussed above.

 

Basic earnings per share was 0.85p (HY 20: (0.18)p).

 

Dividends

 

On admission to AIM in December 2019, the Group's stated intention was to make dividend payments of c.30% of profit after tax. This policy remains in place. However, as we believe the opportunities ahead of us are significant, in particular investment in Facilisgroup, we have taken the decision to retain cash in the business and not to pay an interim dividend in 2021. The timing of implementing our stated dividend policy will be considered again against the Group's full year progress and an update provided at that time.

 

Cashflow

 

The Group had a cash balance of £3.6m at 30 June 2021 (30 June 2020: £10.2m), which included £7.7m drawn down from its £10.0m committed revolving credit facility (30 June 2020: £8.4m).

 

Cashflow for the Period is set out below

 

	HY 21	HY 20	FY 20
	Unaudited £'m	Unaudited £'m	Audited £'m
Adjusted EBITDA	4.4	2.6	9.8
Movement in working capital excluding IPO related accruals	(12.3)	(4.4)	1.7
Capital expenditure excluding acquisition of intangible assets	(2.0)	(1.3)	(3.1)
Leases	(0.6)	(0.5)	(1.2)
Underlying operating cash flow	(10.5)	(3.6)	7.2
Movement in working capital IPO related accruals	(0.4)	(3.4)	(3.5)
Acquisition of intangible assets	(0.2)	-	(2.6)
Adjusted operating cash flow	(11.1)	(7.0)	1.1
Tax paid	(0.1)	(0.2)	(1.3)
Net finance cash flows	7.5	8.1	(0.7)
Exceptional items	-	-	(0.5)
Exchange loss	0.2	0.5	(0.4)
Net cash flow	(3.5)	1.4	(1.8)

 

The movement in working capital in the Period was £(12.3m) (HY 20: £(4.4m)). The outflow has supported the high value of Brand Addition Consumer Promotion revenue in HY 21 amplifying the normal in-year cycle which peaks in Q3 as these orders are delivered and invoiced. The incremental outflow of £7.9m relates to the significant increased trading volumes principally (i) £2.5m  Consumer Promotions orders in transit to the customer; and  (ii) £5.4m trade receivables net of trade payables.

 

Capital expenditure in the Period was £2.0m (HY 20: £1.3m). The £0.7m additional spend relates to the ongoing investment in Facilisgroup technology products.

 

Lease payments relate to leases capitalised in accordance with IFRS 16. The increase arises as the Group entered into a new office for Facilisgroup in December 2020.

 

Net finance cash flows in the Period of £7.5m (HY 20: £8.1m) relate to utilisations on committed facilities less interest payments in respect of leases capitalised in accordance with IFRS 16. 

 

Cash and liquidity

 

The Group's working capital cycle is unwinding as expected, the high point experienced in the period from June to August 2021 is reducing as we move through the year, with clients and Partners continuing to pay to agreed terms. The Group had Net debt of £4.8m at 6 September 2021. This includes a £9.2m drawdown from the £10.0m committed revolving credit facility. We expect Net cash at the full year end, 31 December 2021 to be ahead of previous expectation at no less than £8.0m (31 December 2020: £7.1m).

 

Claire Thomson

Chief Financial Officer

7 September 2021

 

 

CONSOLIDATED INCOME STATEMENT

	Notes	Unaudited Period ended 30 June 2021	Unaudited Period ended 30 June 2020	Audited Year ended 31 December 2020
		£'000	£'000	£'000
Revenue		46,759	33,564	82,374
Cost of goods sold		(29,533)	(19,951)	(51,382)
Gross profit		17,226	13,613	30,992
Operating expenses		(15,064)	(12,717)	(24,781)
Operating expenses - exceptionals	4	-	-	(542)
Total operating expenses		(15,064)	(12,717)	(25,323)
Operating profit		2,162	896	5,669
Analysed as:
Adjusted EBITDA1		4,448	2,564	9,755
Depreciation	8	(986)	(719)	(1,567)
Amortisation	7	(1,071)	(949)	(1,963)
Share-based payment charge	12	(229)	-	(14)
Exceptional items	4	-	-	(542)
Operating profit		2,162	896	5,669
Finance expense		(269)	(303)	(700)
Profit before taxation		1,893	593	4,969
Income tax expense	5	(473)	(897)	(889)
Profit/(loss) for the period		1,420	(304)	4,080
Basic profit/(loss) per share	6	0.85p	(0.18)p	2.44p
Diluted profit/(loss) per share	6	0.84p	(0.18)p	2.44p

 

Note 1: Adjusted EBITDA, which is defined as operating profit before depreciation, amortisation, exceptional items and share-based payment charge is a non-GAAP metric used by management and is not an IFRS disclosure.
 

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

	Unaudited Period ended 30 June  2021	Unaudited Period ended 30 June 2020	Audited Year ended 31 December 2020
	£'000	£'000	£'000
Items that may be subsequently reclassified to profit and loss
Foreign operations - foreign currency translation differences	(218)	1,299	(708)
Other comprehensive (expense)/income for the period/year	(218)	1,299	(708)
Profit/(loss) for the period/year	1,420	(304)	4,080
Total comprehensive income for the period/year	1,202	995	3,372

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

	Notes	Unaudited As at 30 June 2021	Unaudited As at  30 June 2020	Audited As at 31 December 2020
		£'000	£'000	£'000
ASSETS
Non-current assets
Intangible assets	7	54,387	51,140	54,017
Property, plant and equipment	8	8,460	6,182	9,102
Deferred tax asset		316	167	493
Total non-current assets		63,163	57,489	63,612
Current assets
Inventories	9	15,635	12,404	12,109
Trade and other receivables		30,032	18,920	20,988
Cash and cash equivalents		3,601	10,249	7,066
Current tax asset		533	-	829
Total current assets		49,801	41,573	40,992
TOTAL ASSETS		112,964	99,062	104,604
LIABILITIES
Non-current liabilities
Lease liability	10	7,068	5,388	7,645
Trade and other payables		-	-	930
Deferred tax liability		2,630	1,904	2,637
Total non-current liabilities		9,698	7,292	11,212
Current liabilities
Borrowings		7,750	8,368	-
Lease liability	10	1,422	1,003	1,334
Trade and other payables		26,399	17,647	25,775
Current tax liability		-	859	-
Total current liabilities		35,571	27,877	27,109
TOTAL LIABILITIES		45,269	35,169	38,321
NET ASSETS		67,695	63,893	66,283
Share capital		1,675	1,800	1,800
Share premium		78,451	78,451	78,451
Capital reserve		125	-	-
Merger reserve		(103,581)	(103,581)	(103,581)
Translation reserve		(1,822)	403	(1,604)
Share-based payments reserve		223	-	13
Retained earnings		92,624	86,820	91,204
TOTAL EQUITY		67,695	63,893	66,283

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share capital	Share premium	Capital reserve	Merger reserve	Translation reserve	Share-based payments reserve	Retained earnings	Total equity
	£'000	£'000		£'000	£'000		£'000	£'000
At 1 January 2020	1,800	78,451	-	(103,581)	(896)	-	87,124	62,898
Loss for the period	-	-	-	-	-	-	(304)	(304)
Other comprehensive income for the period	-	-	-	-	1,299	-	-	1,299
Total comprehensive income/(expense)	-	-	-	-	1,299	-	(304)	995
At 30 June 2020	1,800	78,451	-	(103,581)	403	-	86,820	63,893
Profit for the period	-	-	-	-	-	-	4,384	4,384
Other comprehensive expense for the period	-	-	-	-	(2,007)	-	-	(2,007)
Total comprehensive income/(expense)	-	-	-	-	(2,007)	-	4,384	2,377
Employee share schemes - value of employee services	-	-	-	-	-	13	-	13
Total transactions with owners recognised in equity	-	-	-	-	-	13	-	13
At 31 December 2020	1,800	78,451	-	(103,581)	(1,604)	13	91,204	66,283
Profit for the period	-	-	-	-	-	-	1,420	1,420
Other comprehensive expense for the period	-	-	-	-	(218)	-	-	(218)
Total comprehensive income/(expense)	-	-	-	-	(218)	-	1,420	1,202
Purchase of deferred shares	(125)	-	125	-	-	-	-	-
Employee share schemes - value of employee services	-	-	-	-	-	210	-	210
Total transactions with owners recognised in equity	(125)	-	125	-	-	210	-	210
At 30 June 2021	1,675	78,451	125	(103,581)	(1,822)	223	92,624	67,695

 

 

CONSOLIDATED CASH FLOW STATEMENT

	Notes	Unaudited Period ended 30 June 2021	Unaudited Period ended 30 June 2020	Audited Year ended 31 December 2020
		£'000	£'000	£'000
Operating profit		2,162	896	5,669
Adjustments for:
-       Amortisation	7	1,071	949	1,963
-       Depreciation	8	986	719	1,567
-       Share-based payments charge	12	229	-	13
-       Loss on disposal of fixed assets		-	10	-
Cash flows from operating activities before changes in working capital		4,448	2,574	9,212
-       Change in inventories		(3,526)	(4,452)	(4,157)
-       Change in trade receivables		(9,044)	6,624	4,556
-       Change in trade payables		(129)	(9,920)	(2,146)
Cash flows (used in)/from operating activities		(8,251)	(5,174)	7,465
-       Income taxes paid		(46)	(236)	(1,313)
Net cash flows (used in)/from operating activities		(8,297)	(5,410)	6,152
Cash flows from investing activities
-       Purchase of property, plant and equipment		(257)	(236)	(806)
-       Purchase of intangible assets		(1,983)	(1,054)	(4,871)
Net cash flows used in investing activities		(2,240)	(1,290)	(5,677)
Cash flows from financing activities
-       Lease payments		(594)	(521)	(1,141)
-       Interest paid		(269)	(303)	(700)
-       Receipts from secured loan facilities		7,750	8,368	-
Net cash flows from/(used in) financing activities		6,887	7,544	(1,841)
NET CASH FLOWS		(3,650)	844	(1,366)
Cash and cash equivalents at beginning of period		7,066	8,861	8,861
Effect of exchange rate fluctuations on cash held		185	544	(429)
Cash and cash equivalents at end of period		3,601	10,249	7,066