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Unaudited Interim Results for the six months ended 31 August 2013

Bloomsbury Publishing Plc today announces six month results for the period ended 31 August 2013.

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Financial highlights

  • Turnover £49.2 million (2012: £43.5 million) +13%
  • Profit before taxation and highlighted items* £2.8 million (2012: £2.1 million) +33%
  • Profit before taxation £1.1 million (2012: £0.9 million) +33%
  • Interim dividend pence per share 0.98 pence (2012: 0.94 pence) +4%
  • Diluted earnings per share before highlighted items* 2.89 pence (2012: 2.13 pence) +36%
  • Diluted earnings per share of 1.17 pence (2012: 0.84 pence) +39%

Operating highlights

  • Academic and Professional business growing
    • Division now represents 43% of Group adjusted operating profit (2012: 27%)
    • Acquisition of the academic law publisher, Hart Publishing, for up to £6.9 million
    • Drama Online subscriptions exceeded expectations
    • Winner of IPG Independent Publisher of the Year, Frankfurt Book Fair Academic & Professional Publisher of the Year and Academic, Educational and Professional Publisher of the Year
  • Adult division excellent first half sales and profits, strong second half list
    • The Signature of All Things - Elizabeth Gilbert
    • MasterChef: the Finalists
    • Paul Hollywood's Pies and Puds
    • Tom Kerridge's Proper Pub Food
  • Bestsellers across the Group include:
    • And the Mountains Echoed - Khaled Hosseini
    • Crown of Midnight - Sarah J. Maas
    • Shh! Don't Wake the Royal Baby - Martha Mumford and Ada Gray
    • MaddAddam - Margaret Attwood
    • The Bone Season - Samantha Shannon

* Highlighted items comprise amortisation of intangible assets, acquisition related costs, relocation costs and, in the prior year, Bloomsbury India set up costs.

Commenting on the results, Nigel Newton, Chief Executive, said:

"The Group has made a good start to the year. In line with the Company's growth strategy, Bloomsbury has made significant progress in developing the Academic & Professional division, most notably with the acquisition of Hart Publishing. Our Adult division enjoyed a very good interim result, reflecting an impressive new book programme including And the Mountains Echoed by Khaled Hosseini and The Bone Season by Samantha Shannon, as well as a flourishing cookery list.

We start the second half with a strong programme including MasterChef: The Finalists and The Signature of All Things by Elizabeth Gilbert."

 

Note: Adjusted results in the following statement exclude highlighted items.

 

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Chief Executive's Review

Overview

The Bloomsbury Group performed very well in the first half of the financial year with revenue increasing by 13% to £49.2 million and adjusted profit before tax increasing by 33% to £2.8 million. This follows a successful new book programme which included And the Mountains Echoed by Khaled Hosseini and The Bone Season by Samantha Shannon, which was acquired this week by 20th Century Fox and Chernin Entertainment for a major new film. These titles helped drive the 77% increase in Adult division adjusted operating profit to £1.1 million. The Academic & Professional division continues to grow with a strong performance for the interim period. In line with our strategy to increase the proportion of revenues delivered by the Academic & Professional division, in September 2013 Bloomsbury acquired Hart Publishing ("Hart"), the Oxford-based academic law publisher, for a consideration of up to £6.9 million.

Traditionally sales of trade titles peak for Christmas and sales of academic titles peak in the autumn, at the beginning of the academic year. We expect our results therefore to continue to be significantly second half weighted.

Summary of results

Adjusted profit before tax for the six months ended 31 August 2013 increased by 33% to £2.8 million (2012: £2.1 million). Profit before tax was £1.1 million (2012: £0.9 million). Revenue increased by 13% to £49.2 million. Within this, print sales were up 13% to £39.6 million (2012: £34.9 million), digital sales increased 22% to £5.8 million (2012: £4.8 million) and rights and services sales were £3.8 million (2012: £3.8 million).

In the first half of the last financial year we acquired Fairchild Books and Applied Visual Arts Publishing. These two businesses contributed £0.9 million of profit in this interim period, an increase of £0.4 million year on year and £3.0 million of revenues, an increase of £0.8 million. Underlying Group revenue, excluding the results of these acquisitions grew by 12% year on year.

Bloomsbury's excellent print sales this period reflect the successful front list releases. Digital sales are now 12% of Group sales (2012: 11%). They mainly comprise sales of e-books (10% of Group revenue), which are up 14% year on year to £5.1 million (2012: £4.5 million). In the UK e-book sales were up 58% year on year; in the US, following bestsellers last year, e-book sales were down 20%. According to Nielsen Bookscan data as at 9 June 2013, 19% of the UK adult population have now bought e-books compared to 12% at the same time last year.

Bloomsbury India is now one year old and has grown quickly and successfully. During the period it generated turnover of £0.8 million and contributed a small profit to the Group, ahead of its budget. We have recently signed bestselling author Shiv Khera, renowned for his successful self-help books.

The Group continues to implement cost-saving initiatives. During the period we have tendered our colour print purchasing which will deliver savings starting in the second half of the year, equivalent to £0.4 million per annum. Bloomsbury continues to develop towards a digital-based workflow model and we have successfully transferred internal resources accordingly. In addition, during the period, we have invested in new staff in IT, Digital Development and Production to facilitate further the strategic move to digital workflows. This move includes a Group-wide shift to content-led XML-based workflows to expedite the print and digital production process. Combined with additional investment in Operations in the second half of the year, total additional investment in these areas will be £0.6 million per annum.

The adjusted operating profit margin has increased from 4.7% to 5.7% year on year.

Highlighted items of £1.7 million (2012: £1.3 million) include £1.3 million (2012: £1.1 million) of recurring amortisation of intangible assets. Other highlighted items in this period include costs of acquisition for Hart and staff restructuring costs following the integration of Fairchild Books.

The effective rate of tax for the period was 23% (2012: 26%) reflecting the reduction in the rate of corporation tax and the recognition of further trading losses. Adjusted diluted earnings per share were 2.89 pence (2012: 2.13 pence). Diluted earnings per share for the period were 1.17 pence (2012: 0.84 pence).

The business had £10.0 million of cash as at 31 August 2013 (31 August 2012: £10.6 million). During the period £2.0 million was paid as instalments for the acquisitions of Fairchild Books and Applied Visual Arts Publishing. On 2 September 2013, after the period end, Bloomsbury paid £6.4 million in cash for the acquisition of Hart.

Divisional review

Academic & Professional

The Academic & Professional division generated strong organic growth in the interim period, coupled with a further high-quality acquisition. During the period the division won three major awards recognising our rapid ascent as an academic publisher: IPG Independent Publisher of the Year; Frankfurt Book Fair Academic & Professional Publisher of the Year; and Academic, Educational and Professional Publisher of the Year at the Bookseller Industry Awards.

The division generated 28% of Group revenue this period (2012: 28%) and 43% of Group adjusted operating profits (2012: 27%). Revenue was up 13% year on year by £1.6 million to £13.9 million. Adjusted operating profit was up 117% to £1.2 million (2012: £0.6 million). With an increasing focus on digital publishing, the division's digital revenues are growing quickly. 9% of revenues in the division were digital compared to 7% in the same period last year. These have grown by 49% year on year to £1.2 million in the period boosted by a robust performance from online subscription revenue.

Continuing its strategy of acquiring high-quality assets in areas which complement its existing academic and professional lists, Bloomsbury acquired the academic law publisher, Hart, in September. The initial consideration of £6.4 million was paid in cash on completion from Bloomsbury's cash reserves and is subject to a working capital adjustment following a completion audit. A further cash consideration of up to a maximum of £0.5 million will be payable on the achievement of certain revenue and title number targets for the year ending 31 March 2014. The acquisition will be immediately earnings-enhancing, contributing approximately £1.4 million of revenue to Bloomsbury in the year ending 28 February 2014.

The acquisition is consistent with Bloomsbury's strategy to increase its proportion of academic and professional revenues to 50% of total sales in five years' time. These revenues are more predictable and have lower related costs of sale with higher margins and are much less reliant on retail bookshop sales. Around 50% of Hart's revenue is generated outside the UK, thereby increasing Bloomsbury's benefit from the global book market. The acquisition will also enable the Group to further develop its e-book publishing and expand Bloomsbury Professional's digital services.

Hart was founded in 1996 and has developed an important academic list with leading authors including Michael Fordham QC, Andrew Burrows, Grainne de Burca, J. W. Carter, Peter Cane, Simon Deakin, Vernon Bogdanor, Robert O'Donoghue, Philip Coppel QC and Michael Beloff QC amongst others. Hart generated £2.6 million of revenue and £0.5 million of profit before tax in the year ended 31 March 2013.

In the first half, Bloomsbury Professional published the fourth edition of Law of Torts in Ireland. This is a leading title for the Irish Market and has been long awaited with outstanding sales since publication. The Irish business also produced the fifth edition of Irish Land Law, by Professor J. C. W. Wylie, to great acclaim.

Bloomsbury Professional's UK legal list saw the publication of the second edition of Licensed Premises: Law, Practice and Policy and the long-awaited text Thornton's Legislative Drafting fifth edition, both leading books in their field. In addition the third edition of Drafting and Negotiating IT Contracts was published in July. In the second half Bloomsbury Professional will be launching its first legal online service, National Infrastructure Planning service, the new sixth edition of The A-Z of Contract Clauses written by Deborah Fosbrook and Adrian C. Laing and the Manual of Accounting New UK GAAP on behalf of PricewaterhouseCoopers.

Online sales in both the UK and Ireland continue to grow at a very good rate with notable wins in the Irish Legal market and the UK Financial reporting market in the first half.

The Berg Fashion Library won the 2013 Popular Culture Association/American Culture Association Electronic Reference Award. The Chair of the PCA/ACA Award Committee commented: "Not only was the quality of research astoundingly well developed, but its use of web-specific dynamics, including images and links to secondary materials, provided a thorough and insightful investigation of the history of fashion." The Berg Fashion Library continues to outperform our expectations; a new update including images from the Philadelphia Museum of Art and 1000 images from the Fashion Museum at Bath went live in August.

Fairchild Books has been integrated into Bloomsbury USA, including its distribution, which was successfully moved to Bloomsbury's US distributor in July. The business is performing ahead of its budget. AVA has been rebranded as Fairchild Books and will benefit from the market strength associated with the Fairchild Books brand.

In July, Methuen Drama launched https://www.actorsandperformers.com. Actors and Performers is a professional networking site for the acting community with essential career information, including the leading industry contacts directory Actors Yearbook, which is now available online for annual subscription. Authors, casting directors, actors and industry practitioners, such as Richard Eyre, appear as guest bloggers and contributors to offer advice and insight into the profession.

We are currently developing a new platform, Bloomsbury Collections, for launch in spring 2014, which will deliver unique online collections of scholarly e-books for the library market. This new service will respond to the growing demand for e-books from academic libraries worldwide, and will offer new opportunities for scholars and students to discover and make the most of the full wealth of Bloomsbury's academic publishing portfolio. The site will launch with around 1,700 books in 12 subject areas, bringing together innovative current research publications alongside more than a century's worth of authoritative scholarship from the backlists of imprints such as T&T Clark, Bristol Classical Press, Continuum, Berg and the Arden Shakespeare. New collections in further subject areas will follow in future releases, and in future all newly published academic monographs will go directly on to the Bloomsbury Collections site in digital form. There will be flexible options for libraries, which will be able to purchase access to the texts in subject-based collections in any combination.

Bloomsbury's Business Advice and Compliance service is also launching online early in 2014.

Drama Online subscriptions exceeded their annual budget after only four months of trading. At its 2013 award for Publishing Innovation in September, The Association of Learned Society and Professional Publishers highly commended Drama Online. The judges stated: "The platform offers robust original functionality beneath a clear and simple user interface, providing a tool which clearly enhances the study and performance of drama." The service now offers access to 1,000 plays, including the Arden Shakespeare Series.

Adult

It has been an excellent first half for the division in terms of bestsellers, repeatable income from backlist stalwarts, literary prizes and awards and a robust and creative commissioning programme for the future. Digital sales make up an ever more important element of our sales and activity but print is showing resilience way beyond many predictions.

The Adult division generated 47% of Group revenue in the six months ended 31 August 2013 (2012: 46%). Revenue for the period was up by 16% to £23.2 million (2012: £20.1 million). Adjusted operating profit increased by 77% to £1.1 million (2012: £0.6 million). The increase in revenue came largely from print sales which were up £2.6 million, 16% to £18.5 million. Digital sales grew by 17% to £3.6 million.

These results reflect our first half new book programme. Major new novels such as And the Mountains Echoed by Khaled Hosseini, Flora by Gail Godwin, TransAtlantic by Colum McCann, MaddAddam by Margaret Atwood and The Bone Season by Samantha Shannon have all made bestseller charts around the world with critical acclaim. The proportion of e-book sales compared to print sales for these titles has been as high as 50% in some markets. Return of a King by William Dalrymple has been shortlisted for the Samuel Johnson Prize for Non-Fiction 2013. The Lowland by Jumpha Lahiri was shortlisted for the Man Booker Prize.

The cookery list has also performed well with strong sales of books by Paul Hollywood, Hugh Fearnley-Whittingstall, Heston Blumenthal, Atul Kochhar, Philip Howard, Vivek Singh, the Galvin Brothers and many others. The most recent bestseller is Tom Kerridge's Proper Pub Food, which is accompanied by a six-part BBC television series. Polpo: A Venetian Cookbook (Of Sorts) by Russell Norman won the Gourmand Award for Best Cookbook on Italian Cuisine. In October, we will publish Paul Hollywood's Pies and Puds which will tie in with a twenty-part BBC television series.

In September, Google paid tribute to John Wisden, legendary cricketer and publisher of the world-famous Wisden Cricketers' Almanack, by creating a distinctive Doodle in his honour viewed by millions in India, Australasia and the UK. It was a celebration of both John Wisden's birthday and the 150th edition of the most famous sports book in the world, which was published in April this year.

On the digital front we saw a significant uplift in sales for the Aberdeen Asset Management Reed's Nautical Almanac app for the iPad, an excellent reception for the Helm series of Bird Identification Guides in e-versions with embedded audible bird tweets. Bloomsbury Reader and Public Library Online continue to innovate and generate new revenue streams. In September, we launched a self-publishing comparison site under the brand Writers & Artists at https://www.writersandartists.co.uk/self-publishing. The site helps aspiring writers cut through publishing jargon, offering an independent view, guiding to a list of self-publishing providers that is relevant to that writer.

International sales have always been important to this division but the development of our offices in India, Australia and USA have found and developed opportunities for promotions, special distributions, intensive marketing and significant market share growth.

Children's & Educational

The Children's & Educational division generated 21% of Group revenue in the six months ended 31 August 2013 (2012: 22%). Against the backdrop of a significant reduction in revenue in both the UK and US Children's book markets year on year, revenue at Bloomsbury's Children's & Educational division for the period was up by 12% year on year to £10.4 million (2012: £9.3 million). Adjusted operating profit was nil, as last year, partly reflecting the investment we have made in staff for our new illustrated and activity books list. Bloomsbury's market share increased, mostly in the picture book and Young Adult categories, in line with our strategy.

Our strategy to acquire global title rights continues - with world rights secured in Urban Outlaws by Peter J. Black and Take Back the Skies by Lucy Saxon, both to publish in spring 2014. We also continue to acquire strong picture book texts and sign up illustrators to grow our illustrated list which launched this year.

Sales highlights in the period included Wednesdays at the Castle by Jessica Day George which featured at number 7 in the New York Times bestseller list and Crown of Midnight by Sarah J. Maas - the sequel to Throne of Glass - which also reached number 7 in the New York Times bestseller list, following a strong global sales and marketing campaign to support global publication in August. Shh! Don't Wake the Royal Baby by Martha Mumford and Ada Gray reached number 8 in the UK Nielsen BookScan Children's chart and Fortunately, the Milk... by Neil Gaiman, illustrated by Chris Riddell, reached number 4 in the UK Nielsen Children's Hardback BookScan chart.

Printz winner In Darkness by Nick Lake and The Weight of Water by Sarah Crossan were shortlisted for the Carnegie Medal. Sarah Crossan won the CBI Children's Book Award and also the UKLA award with her debut novel The Weight of Water.

A market research project was carried out on the Harry Potter series in this new post-film era. The results will be used to direct future Harry Potter publishing and marketing strategies.

This half saw the launch of our first colour e-books across devices with supporting audio from leading actors like Lenny Henry and Emilia Fox. Bloomsbury Spark, our e-first imprint for Young Adult readers, launches this December.

Bloomsbury Activity Books sales continued to grow with support from the supermarket sector. We also launched two apps - My Fairy Activity App and My Pirate Activity App - which made the New and Noteworthy section of the iTunes App store; "App of the Week" The Bookseller; "20 Best iPhone and iPad apps" The Guardian online; "50 Best Apps for Kids 2013" The Guardian.

We continue to build global communities to enhance sales of our education and music titles. We are currently developing a new edition of Music Express to fit the new curriculum to support primary school teachers delivering music lessons in the classroom. This will be launched in print and online as a subscription product in September 2014.

Information

Bloomsbury Information's core activities are the development of IP-rich knowledge hubs in cooperation with external partners and the provision of management and publishing services to third parties. The division generated 3% of Group sales in the six months ended 31 August 2013 (2012: 4%) and 17% of Group adjusted operating profit (2012: 41%). Turnover in the Information division this period was £1.6 million (2012: £1.8 million). Adjusted operating profit was £0.5 million compared to £0.8 million in 2012, the latter benefitting from a £0.3 million one-off cost write back relating to prior years.

During this period the division has been progressing its comprehensive information resource for the IZA, the highly respected German research Institute for the Study of Labor. The resource will help politicians make policy decisions on labor issues. The launch for the website is due on 18 November in Washington, DC.

Dividend

The Directors have declared an interim dividend of 0.98 pence per share which is a 4% increase on the dividend paid for the six months ended 31 August 2012 of 0.94 pence per share. The dividend will be paid on 29 November 2013 to shareholders on the register at close of business on 1 November 2013.

Board

In July, Sarah Jane Thomson stepped down as a Non-Executive Director following the expiry of her term. Sarah made a significant contribution to the Board with her specialist digital expertise which has helped to promote the strong digital culture that now exists across Bloomsbury. Also in July, Jill Jones was appointed as an Independent Non-Executive Director. Jill brings to the Board exceptional experience in digital and print publishing and digital content products centred on Bloomsbury's key strategic area of academic publishing. She was CEO of Cengage EMEA. In August, Stephen Page was appointed as an Independent Non-Executive Director. Stephen is the Chief Executive of Faber and Faber, an independent publisher.

During this period Bloomsbury announced the appointment of Sir Anthony Salz to the Board as an Independent Non-Executive Director and Chairman of the Board. This follows the retirement from the Board of Jeremy Wilson after eight years as an Independent Non-Executive Director, including six as its Chairman. Jeremy made a substantial contribution to Bloomsbury and the Board thanks him for his tremendous contribution. Sir Anthony Salz is Executive Vice Chairman of Rothschild and was senior partner at Freshfields Bruckhaus Deringer.

Outlook

Bloomsbury's strong second half list includes The Signature of All Things by Elizabeth Gilbert, MasterChef: the Finalists, Paul Hollywood's Pies and Puds and Tom Kerridge's Proper Pub Food.

Traditionally sales of trade titles peak for Christmas and sales of academic titles peak in the autumn, at the beginning of the academic year. We expect our results therefore to continue to be significantly second half weighted.

As usual, the Group is targeting a number of contracts from which we expect to deliver Rights & Services income in the second half of our financial year, some of which are not yet contracted.

The Group-wide shift to XML-based workflows, designed to expedite the print and digital production process, is now well advanced with all relevant Bloomsbury content passing through this workflow from January 2014 onwards. This shift in emphasis from 'book' to 'content' will enable our IP to be offered on a multi-format, platform-neutral basis in the global market.

As well as significant success in sales of new trade titles, the Group has also grown its academic and professional profits and increased its digital revenues, two core strategic areas for growth. The Group is well positioned to build on the success of the first half of the year and continue to progress its strategy of leveraging Bloomsbury's significant intellectual property, its strong brand and innovative staff.

 

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Condensed Consolidated Interim Income Statement
For the six months ended 31 August 2013

  Notes 6 months ended
31 August
2013
£'000
6 months ended
31 August
2012
£'000
Year ended
28 February
2013
£'000
Continuing operations        
Revenue 3 49,173 43,463 98,479
Cost of sales   (21,851) (18,882) (41,242)
Gross profit   27,322 24,581 57,237
Marketing and distribution costs   (7,378) (6,295) (12,733)
Administrative expenses   (18,826) (17,498) (34,748)
Operating profit before highlighted items   2,791 2,052 12,414
Highlighted items 4 (1,673) (1,264) (2,658)
Operating profit   1,118 788 9,756
Finance income   17 76 117
Finance costs   (2) (14) (26)
Profit before taxation and highlighted items   2,806 2,114 12,505
Highlighted items 4 (1,673) (1,264) (2,658)
Profit before taxation 3 1,133 850 9,847
Taxation   (256) (221) (2,029)
Profit for the period from continuing operations   877 629 7,818
         
Discontinued operation        
Loss for the period from discontinued operation   - - (352)
Profit for the period attributable to owners of the Company   877 629 7,466
         
Earnings per share attributable to owners of the Company - continuing operations        
Basic earnings per share 6 1.21p 0.87p 10.81p
Diluted earnings per share 6 1.17p 0.84p 10.46p

The accompanying notes form an integral part of this condensed consolidated interim financial report.

 

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Condensed Consolidated Interim Statement of
Comprehensive Income
For the six months ended 31 August 2013

  6 months
ended
31 August
2013
£'000
6 months
ended
31 August
2012
£'000
Year
ended
28 February
2013
£'000
Profit for the period 877 629 7,466
Other comprehensive income      
Items that may be reclassified to the income statement:      
  Currency translation differences on foreign operations (900) 268 1,428
  Deferred tax on share-based payments - 109 (20)
Other comprehensive (expense)/ income for the
period net of taxation
(900) 377 1,408
Total comprehensive (expense)/income for the period attributable to owners of the Company (23) 1,006 8,874
       
       
Arises from:    
Continuing operations (23) 1,006 9,226
Discontinued operation - - (352)
Total comprehensive (expense)/income for the period attributable to the owners of the Company (23) 1,006 8,874

 

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Condensed Consolidated Interim Statement of Financial Position
At 31 August 2013

  Notes 31 August
2013
£'000
31 August
2012
£'000
28 February
2013
£'000
Assets        
  Goodwill   35,064 35,397 35,134
  Other intangible assets   19,147 19,886 20,111
  Property, plant and equipment   3,341 3,152 3,006
  Deferred tax assets   2,341 2,394 1,943
Total non-current assets   59,893 60,829 60,194
         
  Inventories   29,920 23,348 25,584
  Trade and other receivables 7 53,766 49,867 53,630
  Cash and cash equivalents   10,011 10,633 14,625
Total current assets   93,697 83,848 93,839
Total assets   153,590 144,677 154,033
         
Liabilities        
  Retirement benefit obligations   119 160 128
  Deferred tax liabilities   2,925 3,425 3,306
  Other payables   474 2,391 2,548
  Provisions   450 507 377
Total non-current liabilities   3,968 6,483 6,359
         
  Trade and other payables   32,887 26,783 31,579
  Current tax liabilities   1,567 862 1,230
  Provisions   23 98 57
Total current liabilities   34,477 27,743 32,866
Total liabilities   38,445 34,226 39,225
Net assets   115,145 110,451 114,808
         
Equity        
  Share capital   924 924 924
  Share premium   39,388 39,388 39,388
  Translation reserve   4,144 3,884 5,044
  Other reserves   3,130 1,583 2,314
  Retained earnings   67,559 64,672 67,138
Total equity attributable to owners of the Company   115,145 110,451 114,808

 

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Condensed Consolidated Interim Statement of Changes in Equity
For the six months ended 31 August 2013

  Share capital Share premium Translation
reserve
Capital redemption reserve Share-based payment reserve Own shares held by the EBT Retained
earnings
Total equity
  £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 March 2013 924 39,388 5,044 22 3,985 (1,693) 67,138 114,808
Profit for the period - - - - - - 877 877
Other comprehensive income                
  Exchange differences on translating foreign operations - - (900) - - - - (900)
Total comprehensive income for the period - - (900) - - - 877 (23)
                 
Transactions with owners                
  Share options exercised - - - - - 491 (491) -
  Share-based payment transactions - - - - 325 - - 325
  Deferred tax on share-based payment transactions - - - - - - 35 35
Total transactions with owners of the Company - - - - 325 491 (456) 360
At 31 August 2013 924 39,388 4,144 22 4,310 (1,202) 67,559 115,145
                 
At 1 March 2012 924 39,388 3,616 22 3,438 (2,142) 63,934 109,180
Profit for the period - - - - - - 629 629
Other comprehensive income                
  Exchange differences on translating foreign operations - - 268 - - - - 268
  Deferred tax on share-based payment transactions - - - - - - 109 109
Total comprehensive income for the period - - 268 - - - 738 1,006
                 
Transactions with owners                
  Share-based payment transactions - - - - 265 - - 265
Total transactions with owners of the Company - - - - 265 - - 265
At 31 August 2012 924 39,388 3,884 22 3,703 (2,142) 64,672 110,451

 

 

  Share capital Share premium Translation
reserve
Capital redemption reserve Share-based payment reserve Own shares held by the EBT Retained
earnings
Total equity
  £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 March 2012 924 39,388 3,616 22 3,438 (2,142) 63,934 109,180
Profit for the year - - - - - - 7,466 7,466
Other comprehensive income                
  Exchange differences on translating foreign operations - - 1,428 - - - - 1,428
  Deferred tax on share-based payment transactions - - - - - - (20) (20)
Total comprehensive income for the year - - 1,428 - - - 7,446 8,874
                 
Transactions with owners                
  Dividend to equity holders of the Company - - - - - - (3,793) (3,793)
  Share options exercised - - - - - 449 (449) -
  Share-based payment transactions - - - - 547 - - 547
Total transactions with owners of the Company - - - - 547 449 (4,242) (3,246)
At 28 February 2013 924 39,388 5,044 22 3,985 (1,693) 67,138 114,808

 

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Condensed Consolidated Interim Statement of Cash Flows
For the six months ended 31 August 2013

  6 months ended 6 months ended Year ended
  31 August 31 August 28 February
  2013 2012 2013
  £'000 £'000 £'000
Cash flows from operating activities      
Continuing operations      
Profit before taxation 1,133 850 9,847
Finance income (17) (76) (117)
Finance costs 2 14 26
Operating profit 1,118 788 9,756
Adjustments for:    
  Depreciation of property, plant and equipment 300 277 546
  Amortisation of intangible assets 1,317 1,069 2,321
  Gain on bargain purchase - - (210)
  Loss on sale of property, plant and equipment 30 - -
  Share-based payment charges 364 265 615
  3,129 2,399 13,028
Increase in inventories (4,791) (68) (1,536)
(Increase) / decrease in trade and other receivables (583) 5,206 883
Increase / (decrease) in trade and other payables 1,899 (6,831) (3,935)
Cash (used in) / generated from continuing operations (346) 706 8,440
Discontinued operation - - -
Cash (used in) / generated from operating activities (346) 706 8,440
Income taxes (paid ) / refunded (1,106) 196 (552)
Net cash (used in) / generated from operating activities (1,452) 902 7,888
Cash flows from investing activities    
Purchase of property, plant and equipment (700) (411) (526)
Purchase of businesses, net of cash acquired (2,001) (1,687) (1,686)
Purchases of intangible assets (382) (921) (2,366)
Sale of discontinued operations - - 2,158
Interest received 17 74 41
Net cash used in investing activities (3,066) (2,945) (2,379)
Cash flows from financing activities    
Equity dividends paid - - (3,793)
Interest paid (2) (11) (1)
Net cash used in financing activities (2) (11) (3,794)
Net (decrease) / increase in cash and cash equivalents (4,520) (2,054) 1,715
Cash and cash equivalents at beginning of period 14,625 12,639 12,639
Exchange (loss) / gain on cash and cash equivalents (94) 48 271
Cash and cash equivalents at end of period 10,011 10,633 14,625

 

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Notes

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