FORTERRA PLC 2017 HALF YEAR RESULTS

1 August 2017

FORTERRA PLC

2017 HALF YEAR RESULTS

Forterra plc, a leading UK producer of manufactured masonry products, announces half year results for the six months ended 30 June 2017.

	Six months ended 30 June						Year ended 31 December
	2017		2016		Change %		2016
	£m		£m				£m
Pro-forma basis*
Revenue	162.7		146.0		11.4%		294.5
EBITDA before exceptionals	38.7		38.3		1.0%		69.4
PBT before exceptionals	31.4		30.4		3.3%		53.1
EPS before exceptionals (pence)	12.6		12.0		5.0%		21.0
Operating cash flow before exceptionals	31.9		24.9		28.1%		69.8
Statutory basis
Operating profit	33.6		24.3				51.3
Profit before tax	31.4		13.0				37.1
EPS (pence)	12.6		4.4				13.8
Cash generated from operations	31.8		13.9				56.2
Dividend - interim / total (pence)	3.1		2.0				5.8

 

 *Pro-forma basis is stated after making the following adjustments:
(i)   adding an appropriate level of overheads in 2016 to make it comparable with the plc cost structure in 2017;
(ii)  deducting finance charges in 2016 and recalculating assuming that the debt structure at IPO was in place throughout the year; and
(iii) excluding exceptional items which are detailed in note 7.
Reconciliation from pro-forma basis to the statutory basis is included on page 9.

HIGHLIGHTS

·	Double digit increase in brick and block revenue reflecting good demand from the new build residential market
·	EBITDA ahead of prior period comparative due to higher volumes and increased prices which mitigated higher input costs, partially offset by sales mix
·	Result includes budgeted cost increases of £1.7m to enable the business to operate stand-alone since listing. The growth in EBITDA over 2016 was 5.7% after adjusting for this
·	Strong cash flow performance resulting in reduction of net debt of £22.9m to £69.4m at 30 June 2017, representing 1.0 times last twelve months EBITDA
·	Interim dividend declared of 3.1 pence per share (2016 interim: 2.0 pence)
·	Agreement in July 2017 to acquire the trade and assets of Bison Manufacturing Ltd, a UK market leading manufacturer of hollowcore precast concrete flooring
·	New five-year Revolving Credit Facility of £150m agreed in July 2017 on improved terms

 

Stephen Harrison, Chief Executive Officer, commented:

"We are pleased with the first half performance. We achieved increased sales through strong brick and aggregate block volumes, underpinned by robust activity levels in the new build residential sector, albeit against a relatively weaker volume comparator due to supply chain destocking which unwound during 2016. We also achieved underlying price increases in the first half which mitigated increases in the operating cost base.

"Current levels of activity from our housebuilder customers and our order book growth continue to be positive, but we remain watchful over any negative impact from a weakening of consumer confidence on the housing and RMI markets.

"The Board expects to continue to make progress in the second half, and our expectations for the full year are unchanged."

                                                                                                                                     

ENQUIRIES
Forterra PLC	+44 1604 707 600
Stephen Harrison, Chief Executive Officer
Shatish Dasani, Chief Financial Officer
FTI Consulting	44 203 727 1340
Richard Mountain / Nick Hasell

 

A presentation for analysts will be held today, 1 August 2017, at 10:30am at the offices of FTI Consulting. A recorded audiocast of the presentation will be available on the Investors section of our website (http://www.forterraplc.co.uk) later in the day.

 

ABOUT FORTERRA PLC

Forterra is a UK leader in manufactured masonry products, with a unique combination of strong market positions in clay bricks and concrete blocks. The Group also produces a complementary range of bespoke building products, the most significant being engineered precast concrete flooring solutions. The Group operates from 17 facilities in total and was listed on the London Stock Exchange's Main Market in April 2016.

The Group's three primary businesses are:

·      Bricks: Forterra focuses on efficient manufacture of high volume extruded and soft mud bricks, primarily for the housing market. The business is also the sole manufacturer of the iconic Fletton brick sold under the London Brick® brand. Fletton bricks were used in the original construction of nearly a quarter of England's existing housing stock and are today targeted at the residential improvement market to match existing brickwork. The Group operates nine brick manufacturing facilities in Great Britain with a total production capacity of 575 million bricks per annum.

·      Blocks: the Group is a leading manufacturer of aircrete blocks in Great Britain which the Group sells under its Thermalite® brand. The Group also manufactures aggregate blocks, for which it enjoys strong sales in the East and South East of England. The Group operates four block manufacturing facilities in Great Britain.

·      Bespoke Products: the Group's bespoke products range comprises precast concrete, concrete block paving and chimney and roofing solutions, each of which is primarily specified, made to measure, or customised to meet the customer's specific needs. The Group's precast flooring products are complemented by the Group's full design and nationwide installation services, while certain other products, including concrete block paving and chimney flues, are complemented by the specification and design services. The bespoke products business operates from four manufacturing facilities in Great Britain.

INTERIM MANAGEMENT REPORT

 

BUSINESS REVIEW

Forterra has a rich heritage emanating from Hanson plc (now part of HeidelbergCement AG), and was a key player in the consolidation and rationalisation of the building products sector. The business was successfully established as a stand-alone company under Lone Star Funds' ownership before being brought to market as a new public company in April 2016. Lone Star Funds disposed of their remaining holding in April 2017.

 

STRATEGY

 

The Group primarily supplies products into the UK housing industry. After an extended period of subdued house building activity, the UK has a significant structural undersupply of housing. The business is well-positioned to take advantage of the attractive market fundamentals in the short to medium term by utilising its existing, well-invested manufacturing facilities, available production capacity and inventories.

 

The five pillars of Forterra's strategy are:

·      embed manufacturing excellence across the business;

·      align capacity and utilisation to market conditions;

·      maintain cost leadership through operational efficiency in all parts of the business;

·      product and service innovation; and

·      enhance the range of products and services through both organic investment and appropriate bolt-on acquisitions.

 

RESULTS FOR THE HALF YEAR

Revenue in the first half of 2017 was £162.7m, an increase of 11.4% against the comparative period for 2016 which was impacted by supply chain destocking. Increased sales were driven by strong brick and aggregate block volumes, building on the momentum seen towards the end of the prior year and were underpinned by the new build residential sector which continues to see robust levels of activity.

As previously reported, the business achieved underlying price increases which mitigated increases in the operating cost base.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for 2016 has been adjusted to aid comparison to this year by deducting additional PLC costs of £1.2m, reflecting the timing of the Group's Initial Public Offer (IPO), which took place midway through the comparative period. In addition, the finance charge for 2016 has been calculated assuming that the debt structure was in place throughout the period. Except where stated otherwise, commentary throughout these statements refers to the pro-forma results before exceptional items.

EBITDA before exceptionals of £38.7m for the six months ended 30 June 2017 was £0.4m ahead of the comparative for 2016. The increase reflected higher volumes of bricks and aggregate blocks and the benefit of price increases achieved across the product lines which mitigated higher input costs for raw materials, fuel and energy. The result was adversely affected by sales mix which was weighted more towards new build residential projects. The Group was running with a lower level of overheads and operating expenditure in the first part of 2016 pre-IPO, and since listing in April 2016 budgeted investment has been made in specific areas such as IT, sales & marketing, HR and business development to take the Group forward as a stand-alone entity. The effect of this in the first half of 2017 compared with the prior half year was £1.7m.

EBITDA margin of 23.8% was in line with the full year margin for 2016 (23.6%), albeit down on the first half of 2016 for the reasons set out above.

Profit before tax and exceptional items of £31.4m for first half of 2017 was up £1.0m compared to last half year, reflecting lower finance costs in the current period.

OUTLOOK

We are pleased with the first half performance. We achieved increased sales through strong brick and aggregate block volumes, underpinned by robust activity levels in the new build residential sector, albeit against a relatively weaker volume comparator due to supply chain destocking which unwound during 2016. We also achieved underlying price increases in the first half which mitigated increases in the operating cost base.

Current levels of activity from our housebuilder customers and our order book growth continue to be positive, but we remain watchful over any negative impact from a weakening of consumer confidence on the housing and RMI markets.

The Board expects to continue to make progress in the second half, and our expectations for the full year are unchanged.

EARNINGS PER SHARE AND DIVIDEND

Earnings per share before exceptionals was 12.6 pence per share, an increase of 5.0% over the prior half year. This reflects the higher profit before tax and also the benefit of a lower effective tax rate of 20.1% compared with 20.9% in 2016.

The Board has declared an interim dividend of 3.1 pence per share, to be paid on 12 October 2017 to shareholders on the register at 22 September 2017. The interim dividend for 2016 of 2.0 pence per share was based on post-IPO earnings.

CASH FLOW, BORROWINGS AND FACILITIES

Operating cash flow before exceptionals for the half year of £31.9m was £7.0m higher than the first half of 2016 due mainly to a better working capital performance. Inventories reduced by £1.8m since the start of the year and there was a good reduction in debtor days to 35 compared with 39 at December 2016. Capital expenditure of £3.0m was lower than the comparative period due to a deferral of some expenditure into the second half.

Net debt at 30 June 2017 was £69.4m, a reduction of £22.9m from the start of the year due to the strong operating cash generation of the business.

Net debt to EBITDA (calculated with reference to the last twelve months of earnings before exceptionals) reduced further to 1.0 times at 30 June 2017, comfortably below the maximum set by the  banking covenant of 3.5 times. For this purpose, the net debt excludes capitalised finance costs in line with the calculation required by the banking covenant.

The Group's existing debt facility, which was agreed as part of the IPO, was successfully amended in July 2017 and replaced by a new RCF-only facility of £150m with a group of major international banks. The term of the facility has been extended by a year to 2022. In addition, an accordion facility of £50m has also been agreed. The financial covenants are unchanged but there is a reduction in the interest cost under the new facility with interest set at LIBOR plus a margin of 125 to 225 basis points depending on the leverage. The new facility will provide a more efficient and flexible form of funding than the previous structure of a large term loan and much smaller RCF.

The Group has no defined benefit pension scheme in place, with the legacy liabilities of the previous pension scheme left with the HeidelbergCement Group when the business was divested.

BRICKS AND BLOCKS

	Six months ended 30 June						Year ended 31 December
	2017		2016		Change %		2016
	£m		£m				£m
Revenue	123.7		108.7		13.8%		221.3
EBITDA before exceptionals	35.7		35.7				63.6
EBITDA before exceptionals (pro-forma)	35.7		34.8		2.6%		62.7
EBITDA margin (pro-forma)	28.9%		32.0%				28.3%

 

 

Revenue in the first half increased by £15.0m (13.8%), reflecting good demand from the new build residential market and the relatively weaker comparator. Brick volumes were up by double-digit percentage over the comparative period and soft mud volumes in particular were strong. The blocks business also performed well, with aggregate blocks volumes increasing strongly during the period, facilitated by additional shift and capacity utilisation at the Oxfordshire plant in particular. Whilst aircrete block sales volumes were lower than prior period, the business has performed more consistently in the first half of 2017, assisted by progress made in securing a number of alternative raw material supply sources. Production volumes of aircrete were higher than prior period and we have rebuilt inventory levels to maintain good customer service.

EBITDA before exceptionals of £35.7m was up by £0.9m against the comparative for last half year. This was due to increased volumes and price rises which offset higher input costs for raw materials and energy. The result was adversely affected by sales mix and planned cost increases made since IPO as described above. Repair costs at our Measham facility were higher than last half year due to repairs at that plant being carried out in late 2015 to coincide with the shut-down for a major improvement project.

The Group continues to invest in brand awareness and during the period, a focused 'London Brick' marketing campaign was launched, celebrating the heritage and 140 year anniversary. Whilst brick inventories reduced in the period, the Group continues to maintain adequate levels of inventory and uses its own distribution fleet to provide a good level of customer service.

The project to replace the dryers at the Claughton facility in Lancashire has been completed to schedule, resulting in higher efficiency and a capacity increase of over 5 million bricks (c.11%). The total cost of the project is expected to be £3.3m, £0.2m below the initial estimate. The kiln has been re-lit over recent weeks and production will resume in the second half.

 

BESPOKE PRODUCTS

	Six months ended 30 June						Year ended 31 December
	2017		2016		Change %		2016
	£m		£m				£m
Revenue	40.0		38.1		5.0%		74.8
EBITDA before exceptionals	3.0		3.8				7.0
EBITDA before exceptionals (pro-forma)	3.0		3.5		(14.3)%		6.7
EBITDA margin (pro-forma)	7.5%		9.2%				9.0%

 

 

Revenue in the first half increased 5.0% to £40.0m. This was achieved by continued positive performance in precast flooring, supported by demand from new build housing.

 

EBITDA before exceptionals reduced by £0.5m on a like-for-like basis to £3.0m. The precast business was affected adversely by the higher cost of expanded polystyrene (EPS) which increased a number of times in the period. Price increases in the period did not fully recover the extra cost due to timing. Extra costs were also incurred during the period on implementing a lean manufacturing improvement project at the Hoveringham plant which will result in increased output in the second half. 

 

Formpave, the Group's concrete paving business based at our Coleford site in Gloucestershire, successfully installed a new block press machine. This was completed on time and on budget and will enable higher production capacity and greater efficiency across the product range. Performance in the period was affected by aggressive competitor pricing, especially for its main Aquapave product.

 

The Red Bank roofing products business had a positive first half with good price increases and benefits from an enhanced sales, estimation and design service implemented in early 2017.

 

EXCEPTIONAL ITEMS

No exceptional charges were made in the half year compared with £10.3m in the first half of 2016:

			Six months ended 30 June				Year ended 31 December
			2017		2016			2016
			£m		£m			£m
Transaction costs			-		(9.1)			(9.1)
Separation costs			-		(1.2)			(1.3)
Loss on disposal of subsidiary			-		-			(0.1)
Indemnity payment received			-		-			1.6
Total exceptional items			-		(10.3)			(8.9)

 

 

Transaction costs in the prior year related to the IPO of the Group completed in April 2016. Separation costs arose from the setting up of the business as a standalone entity after divestment from HeidelbergCement and include rebranding, set up of standalone IT systems, staff recruitment and new office fit out costs. 

 

ACQUISITION OF BISON MANUFACTURING LIMITED

 

The Group announced in July 2017 an agreement to acquire the trade and assets of Bison Manufacturing Ltd from Laing O'Rourke plc for £20m. Bison is the UK market leading manufacturer of hollowcore precast concrete flooring with a highly automated manufacturing facility located at Swadlincote, Derbyshire, which was opened in 2006.

 

This acquisition provides a unique and immediate opportunity for Forterra to take a leadership position in the UK precast concrete market whilst also expanding its currently capacity-constrained business. It also enables the Group to take advantage of the growing demand for products in the residential, commercial and infrastructure markets, which are underpinned by government initiatives to tackle the country's housing deficit and improve infrastructure. The Bison brand is highly respected and valued in the precast market, with a heritage dating back to 1919. Forterra management estimate that it would cost in excess of £35m to replicate these assets on a greenfield site.

 

The acquisition is expected to complete in the third quarter and will be funded from the Group's existing cash balances. Following completion the Group expects to generate a return on its investment in excess of its cost of capital by 2019 through efficiency improvements, proposed consolidation of production between sites and leveraging procurement synergies.

 

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the business are detailed in pages 34-37 of the Annual Report and Accounts published in April 2017, which are available on the Group website (forterraplc.co.uk). The Group has reviewed these risks and concluded that they have not materially changed since the date of the annual report and are not expected to materially change in the remaining six months of the financial year.

 

The uncertainty presented by the "Brexit" referendum continues to be monitored for the emergence of new risk.

 

GOING CONCERN

 

Having made enquiries and reviewed the Group's plans and available financial facilities, the Board has a reasonable expectation that the group has adequate resources to continue in operation for the foreseeable future, being a period of not less than 12 months from the date of this report. Accordingly, it continues to adopt the going concern basis in preparing the interim statement.

 

PRO-FORMA ADJUSTMENTS

The following pro-forma adjustments have been made to enable a proper understanding of the result compared with prior periods:

	Six months ended 30 June				Year ended 31 December
	2017		2016		2016
	£m		£m		£m
Operating profit (statutory)	33.6		24.3		51.3
Exceptional items (add back)	-		10.3		8.9
Operating profit before exceptionals	33.6		34.6		60.2
Additional costs in 2017 as a  PLC	-		(1.2)		(1.2)
Operating profit before exceptionals (pro-forma basis)	33.6		33.4		59.0
Finance charge (based on debt structure at IPO for full period)	(2.2)		(3.0)		(5.9)
PBT before exceptionals (pro-forma basis)	31.4		30.4		53.1
Tax charge at effective rate	(6.3)		(6.4)		(11.1)
Earnings before exceptionals (pro-forma basis)	25.1		24.0		42.0
Number of shares	200.0		200.0		200.0
Basic EPS before exceptionals (pence)	12.6		12.0		21.0

 

EBITDA is calculated by adding back depreciation and amortisation shown in note 6 to operating profit.

 

FORWARD LOOKING STATEMENTS

Certain statements in this half yearly report are forward looking. Although the Group believes that the expectations reflected in these forward looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements contain risks and uncertainties, actual results may differ materially from those expressed or implied by these forward looking statements.

We undertake no obligation to update any forward looking statements, whether as a result of new information, future events or otherwise.

                                                                                     

 

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE INTERIM REPORT

We confirm to the best of our knowledge:

·      the condensed consolidated set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

·      the interim management report includes a fair review of the information required by:

a)   DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

b)   DTR 4.2.8R of the Disclosure and Transparency Rules, being material related party transactions that have taken place in the first six months of the current financial year and any material changes in the related party transactions described in the annual report.

 

 

By order of the Board

 

 

 

 

Stephen Harrison	Shatish Dasani
Chief Executive Officer	Chief Financial Officer

 

 

1 August 2017

 

 

INDEPENDENT REVIEW REPORT TO FORTERRA PLC

 

INTRODUCTION

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2017 which comprises Condensed Consolidated Income Statement, Condensed Consolidated Statement of Financial Position, Condensed Consolidated Statement of Changes in Equity, Condensed Consolidated Statement of Cash flow and related notes 1 - 16. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

DIRECTORS' RESPONSIBILITIES

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

OUR RESPONSIBILITY

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

SCOPE OF REVIEW

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

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2017 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

Ernst & Young LLP	1 August 2017
London

 

CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE HALF YEAR ENDED 30 JUNE 2017 (UNAUDITED)

				Six months ended   30 June			Year ended 31 December
		Note		2017		2016		2016
				Unaudited		Unaudited		Audited
				£m		£m		£m
	Revenue	6		162.7		146.0		294.5
	Cost of sales			(94.4)		(83.3)		(175.2)
	Gross profit			68.3		62.7		119.3
	Distribution costs			(24.4)		(21.3)		(43.6)
	Administrative expenses			(10.4)		(17.5)		(26.7)
	Other operating (expense)/income			0.1		0.4		2.3
	Operating profit			33.6		24.3		51.3
	EBITDA before exceptional items			38.7		39.5		70.6
	Exceptional items	7		-		(10.3)		(8.9)
	Depreciation and amortisation			(5.1)		(4.9)		(10.4)
	Operating profit			33.6		24.3		51.3
	Net finance expense	8		(2.2)		(11.3)		(14.2)
	Profit before tax			31.4		13.0		37.1
	Income tax expense			(6.3)		(4.2)		(9.6)
	Profit for the financial period attributable to equity shareholders			25.1		8.8		27.5
	Earnings per share:
	Basic (in pence per share)	9		12.6		4.4		13.8
	Diluted (in pence per share)	9		12.4		4.4		13.7

 

The notes on pages 16 to 26 are an integral part of these condensed consolidated financial statements.

All results relate to continuing operations.

Profit for the financial period attributable to equity shareholders is equivalent to total comprehensive income.

Note: The classification of expenses within the income statement has been revised in 2017 and restated in 2016 to more closely align internal and external financial reporting (see note 2).

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017 (UNAUDITED)

			As at   30 June			As at 31 December
Note			2017		2016		2016
			Unaudited		Unaudited		Audited
			£m		£m		£m
					(Restated*)
Assets
Non-current assets
Intangible assets			13.9		13.1		13.7
Property, plant and equipment			144.5		147.2		147.2
Deferred tax assets			0.1		1.6		0.4
			158.5		161.9		161.3
Current assets
Inventories			37.2		44.5		39.0
Trade and other receivables			46.0		41.2		31.6
Cash and cash equivalents			69.3		29.1		56.2
			152.5		114.8		126.8
Total assets			311.0		276.7		288.1
Current liabilities
Trade and other payables			(56.7)		(55.0)		(51.5)
Trade and other payables with related parties		15	-		(0.7)		(0.7)
Income tax liabilities			(6.1)		(4.0)		(3.8)
Loans and borrowings		11	(10.6)		(10.8)		(10.7)
Provisions for other liabilities and charges			(5.8)		(3.1)		(5.7)
			(79.2)		(73.6)		(72.4)
Non-current liabilities
Provisions for other liabilities and charges			(8.8)		(11.7)		(8.7)
Loans and borrowings		11	(128.1)		(137.3)		(137.8)
			(136.9)		(149.0)		(146.5)
Total liabilities			(216.1)		(222.6)		(218.9)
Net assets			94.9		54.1		69.2
Capital and reserves attributable to equity shareholders
Ordinary shares			2.0		2.0		2.0
Retained earnings			92.9		52.1		67.2
Total equity			94.9		54.1		69.2

 

*See note 2.

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 30 JUNE 2017 (UNAUDITED)

	Share capital		Share premium		Deferred share		Retained earnings		Total equity
	£m		£m		£m		£m		£m
Current half year:
Balance at 1 January 2017	2.0		-		-		67.2		69.2
Profit for the financial period attributable to equity shareholders	-		-		-		25.1		25.1
Total comprehensive income for the financial period	-		-		-		25.1		25.1
Share-based payments	-		-		-		0.6		0.6
Balance at 30 June 2017	2.0		-		-		92.9		94.9
Prior half year:
Balance at 1 January 2016	0.1		46.5		-		(257.2)		(210.6)
Profit for the financial period attributable to equity shareholders	-		-		-		8.8		8.8
Total comprehensive income for the financial period	-		-		-		8.8		8.8
Adjustment to reserves on Group reorganisation	(0.1)		(46.5)		-		-		(46.6)
Issue of share capital	2.2		44.4		-		-		46.6
Reclassification of ordinary shares to deferred shares	(0.2)		-		0.2		-		-
Capitalisation of shareholder loan note	-		255.8		-		-		255.8
Capital reduction	-		(300.2)		(0.2)		300.4		-
Share-based payments	-		-		-		0.1		0.1
Balance at 30 June 2016	2.0		-		-		52.1		54.1
Prior year:
Balance at 1 January 2016	0.1		46.5		-		(257.2)		(210.6)
Profit for the financial period attributable to equity shareholders	-		-		-		27.5		27.5
Total comprehensive income for the financial period	-		-		-		27.5		27.5
Adjustment to reserves on Group reorganisation	(0.1)		(46.5)		-		-		(46.6)
Issue of share capital	2.2		44.4		-		-		46.6
Reclassification of ordinary shares to deferred shares	(0.2)		-		0.2		-		-
Capitalisation of shareholder loan note	-		255.8		-		-		255.8
Capital reduction	-		(300.2)		(0.2)		300.4		-
Dividends paid	-		-		-		(4.0)		(4.0)
Share-based payments	-		-		-		0.5		0.5
Balance at 31 December 2016	2.0		-		-		67.2		69.2