REG-Interbulk Group PLC: Half-yearly Report  - Part 2


Released: 29/06/2009

- Part 2: For the preceeding part double click [ID:nPRrT0368a] average number of 302,892,041 302,892,041 302,892,041 shares were (number) Adjusted weighted average 302,892,041 302,892,041 302,892,041 number of ordinary shares (number) Basic profit/(loss)per share 0.40p (0.37p) 0.27p (pence) Diluted profit/(loss) per 0.40p (0.37p) 0.27p share (pence) In all of the above periods the effects of outstanding warrants and options increase the profit per share and thus are anti-dilutive. As a result, the diluted profit per share is the same as the basic profit per share. The outstanding warrants and options are not added to the adjusted weighted average number of ordinary shares. InterBulk Group plc assesses the performance of the Group by adjusting earnings per share, calculated in accordance with IAS 33, to exclude items it considers to be non-recurring and believes that the exclusion of such items provides a better comparison of business performance. The calculation of earnings per ordinary share on this basis is based on the following adjusted earnings: 6 months to 6 months to Year to 31 March 31 March 30 September 2009 2008 2008 £'000 £'000 £'000 Profit/(loss) for the period (£ 1,207 (1,136) 831 '000) Exclude exceptional items (net of 1,073 2,245 2,759 attributable taxation) Exclude amortisation of intangible 182 191 363 assets Adjusted earnings 2,462 1,300 3,953 An adjusted earnings per share figure is presented below: Adjusted basic earnings per share 0.81p 0.43p 1.31p (pence) Adjusted diluted earnings per 0.81p 0.43p 1.31p share (pence) 6. Exceptional items Items charged to operating profit: Exceptional charges of £446,000 in the year relates to a redundancy programme executed mainly impacting the UK workforce plus exit costs associated with the closure of the Flexi-tank business in Asia. The exceptional charge of £441,000 in the year to 30 September 2008 related to the closure of the UK factory involved in the manufacturing of the specialist liners used for the transportation of dry bulk materials. Items charged to finance expenses: Included in the finance expense is an unrealised non-cash loss of £928,000 relating to some asset finance which is in currencies other than sterling to match cash inflows. The associated asset finance is long term in nature. In prior periods as well as asset finance items the exceptional items included unrealised non-cash losses on long-term senior debt denominated in Euros. At the end of June 2008 these loans were re-designated as a balance sheet hedge and since that date exchange gains and losses have recorded within a separate component of equity, the cumulative exchange reserve. 7. Taxation The taxation charge for the period is based on an estimate of the Group's expected annual effective rate of tax for the year to 30 September 2009 which is currently estimated to be 30% (6 months to 31 March 2008: 30%). The exceptional charge associated with the closure of the flexi-tank business in Asia has a nil effective tax rate applied due to the existence of tax brought forward losses. This treatment results in the headline effective rate of 34.7% on the face of the income statement in the 6 months to 31 March 2009. 8. Cash flows from operations 6 months to 6 months to Year to 31 March 31 March 30 September 2009 2008 2008 £'000 £'000 £'000 Net profit/(loss) before 1,847 (1,622) 719 taxation Adjustments for: Depreciation 4,314 3,973 8,196 Amortisation of intangibles 182 191 363 assets: patents (Profit)/loss on disposal of (22) (29) 34 property plant & equipment Finance income (27) (167) (241) Finance expenses 6,581 8,540 13,823 Decrease/(increase) in 950 (1,305) (254) inventories Decrease/(increase) in trade 1,399 (3,099) (2,751) & other receivables (Decrease)/increase in (3,511) 4,126 1,202 payables Cash generated from 11,713 10,608 21,091 operations 9. Analysis of net debt 1 October 2008 Cash Exchange Non-cash 31 March 2009 flow differences movements £'000 £'000 £'000 £'000 £'000 Cash and cash 9,317 (86) 860 - 10,091 equivalents Loans (84,844) 1,740 (8,912) 142 (91,874) Finance leases (28,717) 3,083 (5,207) (2,071) (32,912) (104,244) 4,737 (13,259) (1,929) (114,695) Non-cash movements include £2,071,000 relating to the inception of new finance leases on the purchase of containers and other direct equipment during the year. Non-cash movements within loans include amortisation of deferred finance costs of £142,000 in the period. Excluded from the analysis of net debt above but included within Financial Liabilities is a mark to market fair value for the interest rate swap agreements which expire in 30 September 2010. The balance sheet value at 31 March 2009 was £4,420,000 (30 September 2008; £790,000) 10. Reconciliation of movements in equity Equity Share Consideration Performance Retirement Cumulative Hedge Retained Total share premium Share Plan benefit translation reserve earnings capital account Warrants obligation adjustment equity reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 As at 31 March 30,289 26,431 1,424 41 169 2,618 (1,004) (267) 59,701 2008 Total recognised - - - - (196) (54) 517 1,967 2,234 income and expense for the period Performance - - - 14 - - - - 14 share plan As at 30 30,289 26,431 1,424 55 (27) 2,564 (487) 1,700 61,949 September 2008 Total recognised - - - - 16 457 (2,614) 1,207 (934) income and expense for the period Performance - - - 14 - - - - 14 Share Plan As at 31 March 30,289 26,431 1,424 69 (11) 3,021 (3,101) 2,907 61,029 2009 11. Interim Statements This interim statement is being sent to all shareholders and is available on the Company's website. Copies may be obtained from the Company Secretary at the Registered Office of the Company: One London Wall, London, EC2Y 5AB. 12. Independent review report to InterBulk Group plc Introduction We have been engaged by the directors of InterBulk Group plc (the "Company") to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2009 which comprises the consolidated interim balance sheet as at 31 March 2009 and the related consolidated interim statement of income, cash flows and changes in statement of recognised income and expenses for the six months then ended and related notes. 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. 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 AIM Rules for Companies which require that the financial information must be presented and prepared in a form consistent with that which will be adopted in the company's annual financial statements. This interim report has been prepared in accordance with the basis set out in Note 1. 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. This report, including the conclusion, has been prepared for and only for the company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. 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 31 March 2009 is not prepared, in all material respects, in accordance with the basis set out in Note 1 and the AIM Rules for Companies. PricewaterhouseCoopers LLP Chartered Accountants Glasgow 29 June 2009 END