TIDMBCA
RNS Number : 6569X
BCA Marketplace PLC
28 November 2017
28 November 2017
BCA Marketplace (LSE:BCA) - Interim results for the 6 months
ended 1 October 2017
Continued strong compound growth across Europe's leading
automotive business services Group, fuelled by rapidly developing
services and unique infrastructure, in support of the automotive
industry's evolving supply chain. The Group is well placed for the
future and remains confident of the outcome for the full year.
BCA Marketplace provides a comprehensive range of business
services that facilitate the management of vehicles, throughout
their lifetime, within the European automotive sector. Our unique,
Pan-European infrastructure, includes large scale vehicle logistics
and transportation, de-fleeting and inspection facilities combined
with a range of financial, digital and online services to support
the full spectrum of manufacturers, leasing organisations and
automotive dealer groups. Alongside the provision of these
services, the Group operates Europe's largest automotive exchange
network, comprising WeBuyAnyCar and established physical, hybrid
and digital auctions informed by our proprietary data and analytics
providing our customers with the opportunity to maximise residual
values and liquidity from their used car assets.
RESULTS IN BRIEF
6 months 6 months
ended ended
1 October 2 October
2017 2016
-------------------------- ----------- ----------
Revenue GBP1,171.6m GBP909.8m
Adjusted EBITDA GBP75.8m GBP64.5m
Operating profit GBP40.9m GBP33.6m
Net debt GBP287.4m GBP255.9m
Adjusted diluted earnings
per share 5.4p 4.6p
Diluted earnings per
share 3.2p 3.0p
Dividend per share 2.6p 2.2p
--------------------------- ----------- ----------
FINANCIAL HIGHLIGHTS
-- Revenue of GBP1,171.6m (2016: GBP909.8m) has increased
primarily as a result of growth in WeBuyAnyCar, the full year
effect of outsourced remarketing contracts, and acquisitions
-- Adjusted EBITDA of GBP75.8m (2016: GBP64.5m), up 17.5%
-- Operating profit of GBP40.9m (2016: GBP33.6m), stated after;
o amortisation of acquired intangibles of GBP20.0m (2016:
GBP18.7m); and
o other non-recurring items of GBP2.1m (2016: GBP1.1m)
o giving an adjusted operating profit of GBP63.0m (2016:
GBP53.4m), up 18.0%
-- Net debt of GBP287.4m (2016: GBP255.9m)
-- Diluted earnings per share of 3.2p. Adjusted diluted earnings per share of 5.4p, up 17.4%
-- Interim dividend increased 18.2% to 2.6p per share (2016:
2.2p) to be paid on 31 January 2018 for shares on the register on
15 December 2017
OPERATIONAL HIGHLIGHTS
-- UK Vehicle Remarketing volume exceeds half a million units, up 6.9%
-- International Vehicle Remarketing volume of 175,000 units, up 4.2%
-- WeBuyAnyCar sold 107,000 units, an increase of 13.8%
-- Newly expanded Manchester auction site opened in September 2017 with five auction halls
-- Greater integration of services throughout the Group, with
BCA Automotive delivering a third of UK Remarketing vehicle
movements
-- Opening of the new centralised operational headquarters for
the BCA Logistics business, which co-ordinates the growing Inspect
and Collect, and consumer valuation product to OEM captive finance,
leasing, rental and corporate customers
-- On 16 October 2017, the UKLA approved the transfer of the
Company's shares to a Premium Listing on the Official List
Avril Palmer-Baunack, Executive Chairman said:
"Against the changing landscape of the European automotive and
transportation sector, I am very pleased with the first half
performance, which was at the upper end of market expectations. BCA
continues to grow and go from strength to strength. BCA's unique
offering continues to support the requirements of all market
participants, old and new. In particular, UK Vehicle Buying
reported strong growth as greater numbers of customers used
webuyanycar.com to value and sell their vehicle. Pleasingly, repeat
customers now represent over 10% of WeBuyAnyCar's volume and this
repeat business continues to grow. This straightforward,
hassle-free service with fair, competitive pricing continues to
earn trust and consolidate WeBuyAnyCar's position as the consumers'
preferred choice in the vehicle buying market with a circa 80%
share.
UK and International Vehicle Remarketing volumes again showed
solid growth as vendors continue to recognise the advantage of the
auction model to optimise pricing and cash flow in a dynamic and
changing market with demand from our buying customers remaining
robust. We have again demonstrated why BCA has been the trusted
partner of key companies in the car market for over 70 years. We
have continued to attract both new vendors and buyers to the
Exchange through a focus on improving sales channels for medium and
smaller dealers, whilst strengthening our long standing corporate
relationships. The multitude of reasons people change vehicles,
including, aspiration, technology, running costs and financing
continues to consistently drive churn in the used car market.
Our expanded Automotive Services offering has performed well
overall through increased de-fleet, refurbishment, logistics and
linked services. Integration of the acquired businesses has
resulted in our own transporter fleet now providing one-third of
all auction vehicle movements for our UK Remarketing division,
driving internal efficiencies.
The structures and capabilities we have put in place have made
the Group stronger, more service orientated, agile and efficient.
This progress not only puts BCA in a strong position for the
future, but is also reflected in the strong financial performance
of the Group today, with operational cash flow generation of
GBP55.3m and year-on-year growth of 17.4% in our adjusted diluted
earnings per share for the first half of the year. We continue to
focus on growing the business revenue streams and operational
performance and expect to see further progress through the second
half of the year. This growth puts us on track for approximately a
one third/two thirds, interim/final dividend split. The interim
dividend of 2.6p per share follows the payment of the prior year
final dividend of 4.55p per share.
We are pleased that the second half to date has seen the strong
performance continue and is in line with our expectations and we
therefore remain confident that we can continue to deliver our
profit and growth targets."
For Information
BCA Marketplace plc (Investor Relations) tim.richmond@bca.com
Tim Richmond
Square1 Consulting (Financial PR) +44 (0)20 7929 5599
David Bick
www.bcamarketplaceplc.com
Notes:
I. Prior period comparatives include the results of the acquired
businesses from their acquisition dates (Paragon 18 July 2016, the
leading provider of de-fleet and refurbishment services, and
Supreme Wheels 31 March 2017, an alloy wheel refurbishment
business).
II. Adjusted EBITDA, adjusted operating profit, adjusted diluted
earnings per share and adjusted basic earnings per share are
non-IFRS financial measures and are referred to within the report.
Divisional operating reviews are focused on adjusted EBITDA in
order to give a more meaningful analysis, since depreciation,
interest and tax are managed centrally and significant or
non-recurring items do not directly correlate to continuing
divisional operating performance. Similarly, adjusted diluted
earnings per share are focused on by the Board as this measure adds
back significant or non-recurring items, net of the items taxation
impact, as they do not directly correlate to the continuing Group
operating performance. A reconciliation of adjusted EBITDA to
operating profit is provided in the Operational and Financial
Review. The adjustments between IFRS financial measures and the
non-IFRS measures are explained further in the segmental analysis
and earnings per share notes (note 3 and note 5 of the condensed
consolidated interim financial statements).
III. The Group definition of Net debt excludes the BCA Partner
Finance funding, finance leases and the acquired Paragon invoice
discounting facility (which was repaid and cancelled in February
2017) - see unaudited condensed consolidated interim cash flow
statement for further details.
OPERATIONAL AND FINANCIAL REVIEW
Group Performance
We are pleased to announce another strong set of results for BCA
Marketplace plc (the 'Group' or 'BCA'). Improved results in all
divisions were driven through a combination of volume growth from
the Vehicle Buying division, expanding existing corporate and new
customer relationships, further integration of the acquired
businesses and the full period effect of outsourced remarketing
contracts.
Results Summary
6 months ended 6 months ended
1 October 2017 2 October 2016
Adjusted Operating Adjusted Operating
Revenue EBITDA profit Revenue EBITDA profit
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------ -------- --------- ---------- -------- --------- ----------
UK Vehicle Remarketing 456.7 47.3 31.9 333.1 42.7 28.0
International Vehicle
Remarketing 72.1 12.8 5.1 62.6 11.6 4.8
Vehicle Buying 467.8 11.7 8.0 394.7 8.8 5.1
Automotive Services 175.0 10.9 4.5 119.4 6.4 3.0
Group Costs - (6.9) (8.6) - (5.0) (7.3)
------------------------ -------- --------- ---------- -------- --------- ----------
Total 1,171.6 75.8 40.9 909.8 64.5 33.6
------------------------ -------- --------- ---------- -------- --------- ----------
Group revenue was GBP1,171.6m (2016: GBP909.8m) in the first
half due to increases in the Vehicle Buying division's volume and
the full period impact of both the Paragon acquisition and
outsourced remarketing contracts.
Adjusted EBITDA in the first half was GBP75.8m (2016: GBP64.5m)
an increase of GBP11.3m or 17.5%. Adjusted EBITDA growth was
reported across all divisions driven by higher volumes, greater
penetration of linked services (including BCA Assured, BCA Partner
Finance, transport and BCA Live Online), improved operational
efficiency and the full period impact of the Paragon
acquisition.
Operating profit increased by GBP7.3m or 21.7%, driven by the
growth in adjusted EBITDA partially offset by increases in
depreciation, amortisation and significant or non-recurring
items.
The divisional operating reviews are focused on adjusted EBITDA
in order to provide more meaningful analysis, since depreciation,
interest and tax are principally managed on behalf of the Group,
and do not directly correlate to divisional operating performance.
A reconciliation of adjusted EBITDA to operating profit is provided
in the Financial Performance section.
Forward-looking statements
This document may contain forward-looking statements that may or
may not prove accurate. For example statements referring to growth,
trends, second half, perform well, in line with expectations are
intended to be forward-looking statements. The business is not
highly seasonal between the reported period and the second half.
Forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause actual
results to differ materially from what is expressed or implied by
the statements.
UK Vehicle Remarketing
The volume of vehicles sold through our UK auction operations
has continued to grow, with increased vehicle numbers from strong
growth in the Vehicle Buying division, alongside continued new
customer wins in both OEM and the dealer sector. BCA won Car
Dealers' Power 2017 Auction House of the Year in July and its
pre-eminent position continues to attract increasing volumes from
both existing and new vendors.
Relationships are being formed with some of the industry's newer
participants who can see value both in the Group's growing
technology and data offerings and in the liquidity that the auction
provides. During the period a number of new partnerships have
started, incorporating the BCA DealerPro imaging and consumer
valuation tools, along with integrated remarketing and logistics
services.
UK auction volume sold exceeded half a million units in the
period and at 512,000 units showed an increase of 6.9% compared to
the same period in 2016, producing adjusted EBITDA growth of
10.8%.
6 months 6 months Change (%)
ended ended
1 October 2 October
Highlights 2017 2016
------------------------ ---------- ---------- ------------
Vehicles sold ('000) 512 479 +6.9%
Revenue per vehicle
sold (GBP) 892 695 +28.3%
Revenue (GBPm) 456.7 333.1 +37.1%
Adjusted EBITDA (GBPm) 47.3 42.7 +10.8%
Operating profit (GBPm) 31.9 28.0 +13.9%
Adjusted EBITDA per
vehicle sold (GBP) 92 89 +3.4%
Adjusted EBITDA margin
(%) 10.4 12.8
------------------------- ---------- ---------- ------------
The growth in outsourced remarketing contract volume is the main
contributor to increased revenue on a total and per unit basis as
the full sales value of these vehicles is taken to revenue.
The average hammer price in the auctions has increased
reflecting the newer and broader range of vehicles on offer. The
highest hammer price in the period was GBP245,000 for a Lamborghini
Murcielago SuperVeloce while the most common vehicle for sale was
the Volkswagen Golf which accounted for just under 4% of total
volume. The number of hybrid and electric vehicles continues to
grow representing 1.4% (2016: 1.1%) of total volume.
In September 2017 the expanded Manchester auction centre held
its first sales in the new back-to-back auction lanes. The centre
now has five auction halls and under-cover viewing for over 1,000
vehicles, allowing the centre to expand the regular sales programme
of car and Light Commercial Vehicle ('LCV') sales. The centre
includes a large vehicle de-fleet and preparation facility with
digital imaging and video bays utilising our AutosOnShow technology
ensuring all vehicles can be processed, prepared and imaged to
industry leading standards.
The granting of Royal Assent for HS2 has, as expected, resulted
in the closure of BCA Birmingham LCV auction site. We continue to
assess opportunities to further expand the UK Remarketing capacity
at existing sites in the region.
Improvements in BCA DealerPro have simplified the vehicle
remarketing process with communication of the remarketing
requirement and arrangement for vehicle collection. Improvements in
vehicle entry and information display have contributed to operating
efficiency and enhanced customer experience. We continue to develop
products, services and tools that improve the efficiency and
confidence in transacting at BCA and drive value for our customers'
businesses.
BCA Partner Finance continues to add liquidity and buyer demand
in our marketplace. The number of financed units has grown
throughout the period and penetration has increased to 11.3% of all
BCA vehicles sold in September 2017 (September 2016: 7.9%),
resulting in a loan book of GBP123.7m (2016: GBP79.4m). This
product is an integral part of our proposition to dealers and we
have expanded the product offering to include the financing of part
exchange vehicles for selected BCA Partner Finance customers along
with our new dedicated auction sales programme for our
partners.
Adjusted EBITDA per unit increased by 3.4% to GBP92, reflecting
the increased penetration of products and services and the improved
operational efficiency through increased volume throughput and
expanded sales programmes. This was achieved despite a backdrop of
legislative changes leading to higher costs in labour, business
rates and insurance premium tax.
Adjusted EBITDA margin in the UK of 10.4% results from the
revenue recognition impact of increased outsourced remarketing
contracts, where BCA takes ownership of the vehicles before onward
sale through the remarketing channel and sells the vehicles in its
own right as opposed to on an agency basis, giving rise to the
recognition of the vehicle sale revenue, reducing the reported
margin percentage.
International Vehicle Remarketing
The International Vehicle Remarketing division continues to grow
volume, up 4.2%, at 175,000 units, compared to the same period in
2016. This, along with favourable exchange rate movements, resulted
in a 10.3% increase in adjusted EBITDA.
6 months 6 months Change (%)
ended ended
1 October 2 October
Highlights 2017 2016
------------------------ ---------- ---------- ------------
Vehicles sold ('000) 175 168 +4.2%
Revenue per vehicle
sold (GBP) 412 373 +10.5%
Revenue (GBPm) 72.1 62.6 +15.2%
Adjusted EBITDA (GBPm) 12.8 11.6 +10.3%
Operating profit (GBPm) 5.1 4.8 +6.3%
Adjusted EBITDA per
vehicle sold (GBP) 73 69 +5.8%
Adjusted EBITDA margin
(%) 17.8 18.5
------------------------- ---------- ---------- ------------
Exchange rates produced a 7% favourable movement to our reported
results compared to the prior period, with the average euro
exchange rate for the period at EUR1.140:GBP1 (2016:
EUR1.221:GBP1). If measured at constant exchange rates, revenue and
adjusted EBITDA per unit for the period would have been GBP385 and
GBP68.
In Europe, we are focused on initiatives that raise brand and
auction awareness, to build strong relationships with our vendors
and buyers and to provide an efficient exchange for the remarketing
of vehicles. As part of the 'One Europe' programme we continue to
develop and strengthen the management team and standardise our
processes, products and services. We believe this will bring real
benefits for both our vendors, and our buyer base, which is spread
across over 40 countries with export volume of 27,000 units in the
first half of 2017, up 28.6% on the prior year (2016: 21,000).
During the period we have established a new European transport
brokerage operation to source and manage the efficient movement of
vehicles purchased in BCA operations intended for export to other
countries. Creating such a reliable timely transport solution is
key to the borderless 'One-Europe' programme, to enable buyers to
take faster delivery of vehicles and improve their stock turn.
These initiatives are in their early stages and we have to
continue to build our infrastructure and capabilities, in advance
of the volume gains we expect in the future.
In the first half, our operations in Europe have experienced
differing underlying market conditions, ranging from favourable
markets in Denmark and Sweden driven by exports, stable markets in
the Netherlands and Spain, to more challenging markets during the
period in Germany and Italy. Our portfolio of established European
exchanges allow us to sustain development in comparison to
nationally focused competitors.
Adjusted EBITDA has improved by 10.3% in the first half and 5.8%
on a per unit basis. Adjusted EBITDA growth has been driven by a
combination of volume increases through our existing
infrastructure, maintaining a flexible cost base and the favourable
currency impact.
Vehicle Buying
The Vehicle Buying division incorporates WeBuyAnyCar in the UK
and CarTrade2B in Europe. The Vehicle Buying division brings both
additional volume and a diverse range of vehicles to our
remarketing exchanges.
6 months 6 months Change (%)
ended ended
1 October 2 October
Highlights - UK 2017 2016
------------------------ ---------- ---------- ------------
Vehicles sold ('000) 107 94 +13.8%
Revenue per vehicle
sold (GBP) 4,158 4,119 +0.9%
Revenue (GBPm) 444.9 387.2 +14.9%
Adjusted EBITDA (GBPm) 11.7 8.8 +33.0%
Operating profit (GBPm) 8.0 5.1 +56.9%
Adjusted EBITDA per
vehicle sold (GBP) 109 94 +16.0%
Adjusted EBITDA margin
(%) 2.6 2.3
------------------------- ---------- ---------- ------------
6 months 6 months Change (%)
ended ended
1 October 2 October
Highlights - International 2017 2016
----------------------------- ---------- ---------- ------------
Vehicles sold ('000) 5.2 1.9 +173.7%
Revenue (GBPm) 22.9 7.5 +205.3%
Adjusted EBITDA (GBPm) 0.0 0.0
Operating profit (GBPm) 0.0 0.0
------------------------------ ---------- ---------- ------------
WeBuyAnyCar continues to deliver strong volume growth into our
UK Vehicle Remarketing division, increasing volumes by 13.8% in the
period to 107,000 units sold. Revenue was GBP444.9m, up 14.9%,
driven by increased volume and an average selling price of vehicles
up 0.9%, reflecting a diverse range of high quality vehicles.
Vehicle Buying in the UK delivered an adjusted EBITDA of GBP11.7m,
up 33.0%, at a slightly improved operating margin at the top end of
our target range.
WeBuyAnyCar provides the Group with a controlled but diverse
supply of targeted vehicles into our remarketing network and the
proportion of vehicles sold originating from this 'third disposal
channel' for customers continues to increase (representing circa
21% of our UK Vehicle Remarketing volume). There remains
significant scope for growth in penetration of the vehicle buying
channel in the used car market. WeBuyAnyCar continues to grow both
volume and market share, in spite of the efforts of new challengers
and companies in this market.
We will continue to invest in our innovative data tools and
marketing to ensure our brand strength, appeal and reach is
expanded. This investment has allowed us to again achieve double
digit volume growth while maintaining our unique model that allows
vehicles to be remarketed in an average of 10 days. This ensures
that our pricing model is optimised to reflect current market
conditions and values and therefore manage residual values.
The webuyanycar.com brand promotes to customers the significant
benefits of our quick, easy and safe service to facilitate the
disposal of their cars. WeBuyAnyCar is seeing increased levels of
repeat business as customers' trust in the brand rises. Our
business model and advertising continue to deliver an increasingly
diverse range of vehicles; the largest category of purchased
vehicles was 28,000 superminis while we also purchased over 70
supercars including a GBP144,000 Bentley Mulsanne saloon.
WeBuyAnyCar is ideally placed to offer a convenient service to
customers throughout the UK through our network of over 200
branches, enabling greater availability through extended opening
hours and working days. The average customer took 81 seconds to get
a quote, and drove under 15 minutes to an appointment which took
around 25 minutes to conclude the transaction. The branch locations
portfolio is regularly reviewed to improve the customer retail
experience and journey ease.
In Europe, where opportunities arise to drive benefits in
auction volume, awareness and efficiency, our vehicle buying
activity focuses on purchasing batches of vehicles from corporate
entities and remarketing them through the International Remarketing
division.
Automotive Services
The division comprises new and used vehicle storage, handling,
enhancement, refurbishment and transport capabilities, enabling us
to offer a comprehensive suite of services to our customers. The
integration of recent acquisitions in the Automotive Services
division has led to an improved customer offering and a broader
geographic coverage. The anticipated slowdown and normalisation in
the UK new car volumes has been offset by increasing operational
efficiency, improvements in the automotive and logistics network
and integration with the other business divisions.
6 months 6 months Change
ended ended (%)
1 October 2 October
Highlights 2017 2016
------------------------ ---------- ---------- ------
Revenue (GBPm) 175.0 119.4 +46.6%
Adjusted EBITDA (GBPm) 10.9 6.4 +70.3%
Operating profit (GBPm) 4.5 3.0 +50.0%
Adjusted EBITDA Margin
(%) 6.2 5.4
------------------------- ---------- ---------- ------
This division operates through BCA Logistics, BCA Automotive,
BCA Fleet Solutions and BCA Vehicle Services, providing a network
of new and used vehicle processing, transport and logistics
services for the benefit of UK customers.
BCA Logistics has performed well in the period, driven by the
impact of prior period operating efficiencies, greater volumes of
vehicle moves and inspections, the consolidation of operational
platforms and significantly improved service delivery. Over 95% of
inspections have now been migrated onto our newly enhanced Inspect
Pro platform and at the same time the application has been
developed to facilitate the migration of all branch based
inspections. During the period the business unit completed a move
to a new centralised operational headquarters providing increased
capacity for Logistics operations.
BCA Automotive has improved efficiency through collaboration
with BCA Logistics and the development of new hub and spoke routes.
There are in excess of 65 dedicated trucks servicing the transport
requirements of the UK Vehicle Remarketing branches. The purchase
of over 100 trucks and the integration of the Paragon fleet of
trucks have resulted in a market leading fleet of over 800 trucks
serving the UK automotive market.
BCA Vehicle Services revenue is concentrated on the storage and
handling of vehicles for OEM customers. During the period,
profitability was suppressed due to anticipated lower new car
volumes, however increased storage and inspection volumes were
delivered and customer service levels have improved.
Our BCA Fleet Solutions sites provide refurbishment and
associated services to the marketplace, to enhance vehicles to
agreed standards before the remarketing of those vehicles back
through the distribution network. BCA Fleet Solutions have recently
undertaken a pilot exercise to refurbish selected BCA owned
vehicles to enhance their value, before selling them through our
auction network.
Group Costs
Group costs of GBP6.9m were incurred in the period (2016:
GBP5.0m), driven by development of the corporate capability given
the recent successful application to move to a Premium Listing on
the Official List, and improved management capacity to deliver
joined-up solutions across divisions for OEMs and major
corporates.
Financial performance
The divisional operating reviews are focused on adjusted EBITDA
in order to provide more meaningful analysis, since depreciation,
interest and tax are principally managed at a Group level, and do
not directly correlate to divisional operating performance. The
following table reconciles adjusted EBITDA to operating profit and
profit before tax.
6 months 6 months
ended ended
1 October 2 October
2017 2016
------------------------------------- ---------- ----------
Adjusted EBITDA GBPm GBPm
UK Vehicle Remarketing 47.3 42.7
International Vehicle Remarketing 12.8 11.6
Vehicle Buying 11.7 8.8
Automotive Services 10.9 6.4
Group Costs (6.9) (5.0)
-------------------------------------- ---------- ----------
Total adjusted EBITDA 75.8 64.5
Less:
Depreciation and amortisation (12.8) (11.1)
Amortisation of acquired intangibles (20.0) (18.7)
Significant or non-recurring
items (2.1) (1.1)
-------------------------------------- ---------- ----------
Operating profit 40.9 33.6
Net finance costs (6.0) (6.9)
-------------------------------------- ---------- ----------
Profit before income tax 34.9 26.7
-------------------------------------- ---------- ----------
The increase of depreciation and amortisation reflected a full
period charge for the Paragon business and the general increase in
capacity of the Group.
Amortisation of acquired intangible assets increased by GBP1.3m
to GBP20.0m as a result of the full period impact of the prior year
acquisitions and the impact of foreign exchange on Euro denominated
intangible assets.
Significant or non-recurring items of GBP2.1m consist of GBP1.0m
in relation to the move to the Premium Listing on the Official List
and GBP1.1m of restructuring and non-recurring costs as we continue
to develop the management structure. The prior period included
acquisition costs in relation to the Paragon acquisition.
Cash flow and net debt position
In the first half, the Group generated cash flows from
operations of GBP55.3m (2016: GBP75.0m), the prior period having
benefited from a one off GBP36.1m positive cash flow effect
associated with the commencement and amendment of commercial
contracts. In the current period cash conversion from the improved
operating profit was reduced by volume growth achieved and the
increased value of cars purchased by WeBuyAnyCar at the end of the
period, which created an increase in inventory of GBP10.2m at the
end of the period. The cash and processing cycles for inventory
remain constant with minimal risk to residual values given the
speed at which purchases are turned to sales.
The Group ended the period with net debt of GBP287.4m up
GBP26.9m on year end. The net cash inflow from operating activities
of GBP34.2m (2016: GBP54.5m) was used to fund investing activities
including a payment of GBP9.6m, being the first of two instalments
of performance related deferred consideration in respect of the
Paragon acquisition. Investing activity includes the continuing
construction of the Bedford and Manchester sites, which brings the
cumulative spend at these sites to in excess of GBP16.0m, which
will be available for re-financing in the second half of the year
as they are now operational. There were further costs in respect of
the final dividend of GBP35.5m for the year ended 2 April 2017, as
well as the choice to further directly fund Partner Finance by
GBP4.9m in the period.
The Group definition of net debt excludes the debts relating to
BCA Partner Finance and finance leases, as these are funded under
separate asset-backed lending agreements. At the period end,
facilities in relation to BCA Partner Finance totalled GBP120.0m
(2016: GBP90.0m), of which GBP74.4m (2016: GBP61.7m) was drawn as a
result of growth in this activity.
Tax
The tax charge of GBP8.7m (2016: GBP2.4m) includes a GBP4.3m
(2016: GBP7.1m) net tax credit in relation to significant or
non-recurring items, including GBP4.1m (2016: GBP4.0m) in relation
to amortisation of acquired intangible assets. The income tax
charge was lower in the period to 2 October 2016 primarily due to
the impact of the UK corporation tax rate reduction on deferred tax
assets of GBP3.4m. The underlying effective full year tax rate
before significant or non-recurring items is 22.9%, (year to 2
April 2017 21.8%), reflecting an increase in the Group's overseas
tax liabilities since the previous period.
Pension deficit
The net pension deficit has decreased to GBP13.2m (2 April 2017:
GBP17.3m). The deficit has decreased compared to the prior period
due to an improvement in corporate bond yields, which are a key
valuation measure prescribed by the accounting standards. This
movement, arising as a result of these actuarial assessments, is
accounted for in the statement of other comprehensive income.
Earnings per share and dividends
Adjusted basic and diluted earnings were 5.6 and 5.4 pence per
share respectively (2016: 4.7 and 4.6 pence per share
respectively). The adjusted earnings per share measure uses
adjusted earnings (see note 5).
Basic and diluted earnings per share were 3.3 and 3.2 pence per
share respectively (2016: 3.1 and 3.0 pence per share
respectively). The increase in the basic and diluted earnings per
share is suppressed by the GBP3.4m deferred tax impact of the
reduction in the future UK corporation tax rate in the prior
period.
The Board has set out its intention to adopt a progressive
dividend policy for the Group, reflecting its strong earnings and
cash flow characteristics, while retaining sufficient capital to
fund ongoing operational requirements and to invest in the Group's
long-term growth plans. We remain committed to paying a significant
proportion of after-tax profits as dividends and look to provide
approximately a one-third/two-thirds, interim/final dividend split.
We are pleased to announce an interim dividend of 2.6 pence per
share (2016: 2.2p) an increase of 18.2%, payable to shareholders on
the register on 15 December 2017 and which will be paid on 31
January 2018.
Related party transactions
There have been no changes in the nature of the related party
transactions as described in note 28 to the Annual Report and
Accounts 2017 and there have been no new related party transactions
which have had a material effect on the financial position or
performance of the Group in the six months ended 1 October
2017.
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE
INTERIM FINANCIAL REPORT
Each of the Directors confirms that to the best of their
knowledge:
-- The condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union;
-- The interim management report includes a fair review of the information required by:
a. DTR 4.2.7R of the Disclosure and Transparency Rules (DTR),
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 DTR, being related party transactions that
have taken place in the first six months of the current financial
year and that have materially affected the financial position or
performance of the entity during that period; and any changes in
the related party transactions described in the last annual report
that could do so.
For and on behalf of the Directors:
A Palmer-Baunack T Lampert
Executive Chairman Chief Financial Officer
27 November 2017
Directors
A Palmer-Baunack | P Coelewij | J Corsellis | S Gutteridge | J
Kamaluddin | T Lampert | D Lis |M Brangstrup Watts
UNAUDITED CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
For the For the
6 months 6 months
ended ended
1 October 2 October
Note 2017 2016
----------------- -----------------
GBPm GBPm GBPm GBPm
---------- --------------------------------- ----- ------- -------- ------- --------
Revenue 3 1,171.6 909.8
Cost of sales (952.0) (718.8)
--------------------------------------------- ----- ------- -------- ------- --------
Gross profit 219.6 191.0
Operating costs (178.7) (157.4)
--------------------------------------------- ----- ------- -------- ------- --------
Operating profit 3 40.9 33.6
Finance
income 0.2 0.1
Finance
costs (6.2) (7.0)
--------------------------------------------- ----- ------- -------- ------- --------
Profit before income tax 34.9 26.7
Income tax charge 6 (8.7) (2.4)
--------------------------------------------- ----- ------- -------- ------- --------
Profit for the period 26.2 24.3
============================================= ===== ======= ======== ======= ========
Attributable to:
Equity owners of the Parent 25.9 24.2
Non-controlling interests 0.3 0.1
--------------------------------------------- ----- ------- -------- ------- --------
26.2 24.3
============================================ ===== ======= ======== ======= ========
Earnings per share from continuing
operations attributable to the
equity holders of the Parent
during the period
Basic earnings per share 5 3.3 3.1
Diluted earnings per share 5 3.2 3.0
============================================= ===== ======= ======== ======= ========
Operating profit: 40.9 33.6
Add: - Depreciation and amortisation 3 12.8 11.1
- Amortisation of acquired
intangibles 3 20.0 18.7
- Acquisition related
items 3 - 2.2
- Other significant
or non-recurring items 3 2.1 (1.1)
Adjusted EBITDA 75.8 64.5
Less: - Depreciation and amortisation (12.8) (11.1)
- Net finance costs (6.0) (6.9)
Adjusted profit before income
tax 57.0 46.5
--------------------------------------------- ----- ------- -------- ------- --------
Adjusted earnings per share
from continuing operations attributable
to the equity holders of the
Parent during the period
--------------------------------------------- ----- ------- -------- ------- --------
Adjusted basic earnings per
share (pence) 5 5.6 4.7
Adjusted diluted earnings per
share (pence) 5 5.4 4.6
============================================= ===== ======= ======== ======= ========
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENT OF
COMPREHENSIVE INCOME
For the For the
6 months 6 months
ended ended
1 October 2 October
2017 2016
GBPm GBPm
--------------------------------------- ----------- -----------
Profit for the period 26.2 24.3
Other comprehensive income:
Items that will not be reclassified
to the income statement
Remeasurements on defined benefit
schemes, including deferred tax 3.6 (10.0)
Deferred tax on net movements
in share based payments 0.3 0.1
Items that may be subsequently
reclassified to the income statement
Foreign exchange translation 10.2 26.7
--------------------------------------- ----------- -----------
Total other comprehensive income,
net of tax 14.1 16.8
---------------------------------------- ----------- -----------
Total comprehensive profit for
the period 40.3 41.1
======================================== =========== ===========
Attributable to:
Equity owners of the Parent 40.0 41.0
Non-controlling interests 0.3 0.1
---------------------------------------- ----------- -----------
40.3 41.1
======================================= =========== ===========
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN
EQUITY
Attributable to equity
owners of the Parent
Foreign Non-
Share Merger exchange Retained controlling Total
capital reserve reserve profit Total interests equity
Note GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------------- ----- --------- --------- ---------- --------- -------- ------------- --------
Balance as at
3 April 2016
(audited) 7.8 103.6 29.0 1,007.4 1,147.8 (0.2) 1,147.6
Total comprehensive
income for the
period
Profit for
the period - - - 24.2 24.2 0.1 24.3
Other comprehensive
income - - 26.7 (9.9) 16.8 - 16.8
----------------------- ----- --------- --------- ---------- --------- -------- ------------- --------
Total comprehensive
income for the
period - - 26.7 14.3 41.0 0.1 41.1
Contribution
and distributions
Share based
payments - - - 0.7 0.7 - 0.7
Dividends paid 9 - - - (31.2) (31.2) - (31.2)
Total transactions
with owners - - - (30.5) (30.5) - (30.5)
------------------------ ----- --------- --------- ---------- --------- -------- ------------- --------
Balance at 2
October 2016
(unaudited) 7.8 103.6 55.7 991.2 1,158.3 (0.1) 1,158.2
======================== ===== ========= ========= ========== ========= ======== ============= ========
Total comprehensive
income for the
period
Profit for
the period - - - 16.7 16.7 0.1 16.8
Other comprehensive
income - - (4.3) 2.1 (2.2) - (2.2)
----------------------- ----- --------- --------- ---------- --------- -------- ------------- --------
Total comprehensive
income for the
period - - (4.3) 18.8 14.5 0.1 14.6
Contributions
and distributions
Share based
payments - - - 0.9 0.9 - 0.9
Dividends paid - - - (17.2) (17.2) - (17.2)
Changes in ownership
interests
Acquisition
of subsidiary
with non-controlling
interest - - - (0.6) (0.6) 0.2 (0.4)
----------------------- ----- --------- --------- ---------- --------- -------- ------------- --------
Total transactions
with owners - - - (16.9) (16.9) 0.2 (16.7)
------------------------ ----- --------- --------- ---------- --------- -------- ------------- --------
Balance at 2
April 2017 (audited) 7.8 103.6 51.4 993.1 1,155.9 0.2 1,156.1
======================== ===== ========= ========= ========== ========= ======== ============= ========
Total comprehensive
income for the
period
Profit for
the period - - - 25.9 25.9 0.3 26.2
Other comprehensive
income - - 10.2 3.9 14.1 - 14.1
----------------------- ----- --------- --------- ---------- --------- -------- ------------- --------
Total comprehensive
income for the
period - - 10.2 29.8 40.0 0.3 40.3
Contributions
and distributions
Share based
payments - - - 0.7 0.7 - 0.7
Dividends paid 9 - - - (35.5) (35.5) - (35.5)
----------------------- ----- --------- --------- ---------- --------- -------- ------------- --------
Total transactions
with owners - - - (34.8) (34.8) - (34.8)
------------------------ ----- --------- --------- ---------- --------- -------- ------------- --------
Balance at 1
October 2017
(unaudited) 7.8 103.6 61.6 988.1 1,161.1 0.5 1,161.6
======================== ===== ========= ========= ========== ========= ======== ============= ========
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
As at As at
1 October 2 April
2017 2017
unaudited audited
Note GBPm GBPm
------------------------------- ----- ----------- ----------
Non-current assets
Intangible assets 7 1,550.9 1,559.5
Property, plant and equipment 7 142.6 133.3
Deferred tax assets 10.9 11.8
------------------------------- ----- ----------- ----------
Total non-current assets 1,704.4 1,704.6
------------------------------- ----- ----------- ----------
Current assets
Inventories 71.6 58.3
Trade and other receivables 352.6 337.1
Cash and cash equivalents 59.4 84.4
Total current assets 483.6 479.8
------------------------------- ----- ----------- ----------
Total assets 2,188.0 2,184.4
------------------------------- ----- ----------- ----------
Non-current liabilities
Bank borrowings 8 (256.8) (254.9)
Trade and other payables (96.3) (101.9)
Pension deficit (13.2) (17.3)
Provisions (17.1) (17.7)
Deferred tax liabilities (110.6) (113.3)
------------------------------- ----- ----------- ----------
Total non-current liabilities (494.0) (505.1)
------------------------------- ----- ----------- ----------
Current liabilities
Bank borrowings 8 (90.0) (90.0)
Partner Finance borrowings 8 (74.4) (69.0)
Trade and other payables (356.5) (358.5)
Current tax (10.1) (4.5)
Provisions (1.4) (1.2)
------------------------------- ----- ----------- ----------
Total current liabilities (532.4) (523.2)
------------------------------- ----- ----------- ----------
Total liabilities (1,026.4) (1,028.3)
------------------------------- ----- ----------- ----------
Net assets 1,161.6 1,156.1
=============================== ===== =========== ==========
Equity shareholders' funds
Share capital 7.8 7.8
Merger reserve 103.6 103.6
Foreign exchange reserve 61.6 51.4
Retained profit 988.1 993.1
------------------------------- ----- ----------- ----------
Equity shareholders' funds 1,161.1 1,155.9
Non-controlling interests 0.5 0.2
------------------------------- ----- ----------- ----------
Total shareholders' funds 1,161.6 1,156.1
=============================== ===== =========== ==========
UNAUDITED CONDENSED CONSOLIDATED INTERIM CASH FLOW STATEMENT
For the For the
6 months 6 months
ended ended
1 October 2 October
2017 2016
Note GBPm GBPm
---------------------------------- ----- ----------- -----------
Cash generated from operations 4 55.3 75.0
Increase in Partner Finance
loan book (10.3) (14.7)
Interest paid (4.2) (4.0)
Interest received 0.1 0.1
Tax paid (6.7) (1.9)
---------------------------------- ----- ----------- -----------
Net cash inflow from operating
activities before acquisition
related cash flows 34.2 54.5
Acquisition related cash
flows - (2.2)
---------------------------------- ----- ----------- -----------
Net cash inflow from operating
activities 34.2 52.3
---------------------------------- ----- ----------- -----------
Cash flows from investing
activities
Purchase of property, plant
and equipment (32.2) (23.3)
Purchase of intangible assets (5.3) (5.0)
Proceeds from sale of property,
plant and equipment 16.2 2.0
Acquisition of subsidiary
undertakings, net of cash
acquired (9.6) (98.1)
---------------------------------- ----- ----------- -----------
Net cash outflow from investing
activities (30.9) (124.4)
---------------------------------- ----- ----------- -----------
Cash flows from financing
activities
Dividends paid (35.5) (31.2)
Proceeds from borrowings 25.0 60.0
Repayments of borrowings (25.0) -
Proceeds from sale and leaseback 3.4 -
of finance leases
Payment of finance lease
liabilities (3.3) (2.7)
Increase in Partner Finance
borrowings 5.4 21.5
---------------------------------- ----- ----------- -----------
Net cash (outflow)/inflow
from financing activities (30.0) 47.6
---------------------------------- ----- ----------- -----------
Net decrease in cash and
cash equivalents (26.7) (24.5)
Foreign exchange on cash
held 1.7 3.9
Cash and cash equivalents
brought forward 84.4 102.4
Cash and cash equivalents
at period end 59.4 81.8
================================== ===== =========== ===========
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL INFORMATION
BCA Marketplace plc (the 'Company'), and its subsidiaries
(together 'the Group') operate in the automotive industry. The
Company was incorporated in April 2014 with the aim to acquire and
manage companies in the UK and European automotive sector. On 2
April 2015, BCA Marketplace plc acquired the BCA Group ('BCA
Group'). This was followed by the acquisitions of SMA Vehicle
Remarketing Limited ('SMA') on 1 June 2015, Stobart Automotive
Limited ('BCA Automotive') on 25 August 2015 and Ambrosetti (U.K.)
Limited ('Ambrosetti') on 4 February 2016. On 18 July 2016 Paragon
Automotive Limited Group of Companies ('Paragon') was acquired,
followed by Supreme Wheels Direct Limited ('Supreme Wheels') on 31
March 2017.
The Company is a public limited company, listed on the London
Stock Exchange and incorporated and domiciled in England and Wales
with the registered number 09019615. The address of the Company's
registered office is BCA Marketplace plc, BCA Bedford, Coronation
Business Park, Kempston Hardwick, Bedford, MK43 9PR.
2. ACCOUNTING POLICIES
(a) Basis of preparation
These condensed consolidated financial statements for the period
ended 1 October 2017 do not comprise statutory accounts within the
meaning of sections 434 and 435 of the Companies Act 2006. They
have been prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the European Union and the Disclosure and
Transparency Rules of the Financial Conduct Authority.
The annual financial statements of BCA Marketplace plc are
prepared in accordance with International Financial Reporting
Standards ('IFRS') and IFRS Interpretations Committee ('IFRS IC')
interpretations as adopted by the European Union ('Adopted IFRS')
and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS. The condensed consolidated set of
financial statements do not include all of the information required
for full annual financial statements and should be read in
conjunction with the consolidated financial statements of the Group
as at and for the period ended 2 April 2017. These condensed
consolidated interim financial statements and notes to the accounts
disclose only those material changes in balances and accounting
policies by reference to those documents.
The comparative balance sheet figures as at 2 April 2017 are
extracted from the BCA Marketplace plc annual report and accounts.
Those accounts have been reported on by the auditor and delivered
to the Registrar of Companies. The report of the auditor was (i)
unqualified, (ii) did not include a reference to any matters to
which the auditor drew attention by way of emphasis without
qualifying their report, and (iii) did not contain a statement
under Section 498 (2) and (3) of the Companies Act 2006.
These condensed consolidated interim financial statements were
approved for issue on 27 November 2017. The results for the current
and comparative interim income statement, interim statement of
comprehensive income and interim cash flow statement are unaudited.
The Group's auditor, PricewaterhouseCoopers LLP, has carried out a
review of the condensed consolidated interim financial statements
and their report is set out at the end of this document.
The financial statements and the notes to the financial
statements are presented in millions of pounds sterling ('GBPm')
except where otherwise indicated.
(b) Going concern
The Group maintains a mixture of medium-term debt, committed
credit facilities, finance lease arrangements and cash reserves,
which together are designed to ensure that the Group has sufficient
available funds to finance its operations. The Board reviews
forecasts of the Group's liquidity requirements based on a range of
scenarios to ensure it has sufficient cash to meet operational
needs while maintaining sufficient headroom on its committed
borrowing facilities at all times, so that the Group does not
breach borrowing limits or covenants (where applicable) on any of
its borrowing facilities.
The principal risks and uncertainties affecting the Group's
business remain largely unchanged from the Annual Report and
Accounts 2017, and comprise the following risks: economic
environment; strategic; commercial; operational; competition; IT
systems and information security; intellectual property and brand;
management; financial and liquidity; regulation and legislation;
and physical damage. A full assessment of the principal risks and
uncertainties that the Directors believe could have the most
significant adverse impact on the Group's business are set out on
pages 39 to 41 of the Annual Report and Accounts 2017, which is
available on the Company's website, www.bcamarketplaceplc.com. The
risks identified in the Annual Report and Accounts 2017 remain
relevant for the second half of the financial year.
The Group is monitoring developments resulting from the
triggering of Article 50 by the UK government in March 2017. The
Board will monitor the outcome of negotiations with the EU, the
withdrawal process and timeframe, and the period for which EU laws
for member states will continue to apply to the UK.
After making appropriate enquiries and having considered the
business activities and the Group's principal risks and
uncertainties, the Directors are satisfied that the Group has
adequate resources to continue in operational existence for the
foreseeable future. Accordingly, the condensed consolidated interim
financial statements have been prepared on a going concern
basis.
(c) Basis of consolidation
The condensed consolidated interim financial statements have
been prepared under the historical cost convention. The same
accounting policies, critical accounting judgements, critical
accounting estimates, presentation and methods of computation have
been applied in these condensed consolidated interim financial
statements as were applied in the consolidated financial statements
of the Group as at and for the period ended 2 April 2017.
The only accounting policy that differs relates to taxes on
income, which in the interim period are accrued using the effective
tax rate that would be applicable to the expected total annual
earnings.
In the application of the Group's accounting policies the
Directors are required to make judgements, estimates and
assumptions about the carrying value of the assets and liabilities
that are not readily apparent from the other sources. The estimates
and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects
only that period or in the period of the revision and future
periods if the revision affects both current and future
periods.
The critical judgements affecting the Group's condensed
consolidated interim financial statements are acquisition
accounting (including the fair value of acquired assets and
liabilities and the valuation of acquired intangible assets), the
impairment of goodwill and intangible assets, accruals for
taxation, the recoverability of deferred tax assets, provisions for
onerous leases, fair value of share based payments and the net
retirement benefit obligation.
(d) New standards, amendments and interpretations
No new standards, amendments or interpretations effective for
the first time for the financial year beginning on or after 3 April
2017 have had a material impact on the Group or Parent Company.
Standards and interpretations which are issued but not yet
effective and have not been early adopted by the Group are as
follows:
-- IFRS 9 Financial instruments addresses the classification,
measurement and recognition of financial assets and financial
liabilities and replaces IAS 39. IFRS 9 will become effective for
accounting periods starting on or after 1 January 2018, subject to
EU endorsement. The impact of the standard is currently being
assessed by management but it is not expected to have a material
impact on the Group.
-- IFRS 15 Revenue from contracts with customers will become
effective for accounting periods starting on or after 1 January
2018. The impact of the standard is currently being assessed by
management, which requires a thorough review of existing
contractual arrangements. Given the proximity between the timing of
performance obligations being met and revenue being recognised,
management's initial assessment is that the impact of this standard
is limited.
-- IFRS 16 Leases establishes principles for the recognition,
measurement, presentation and disclosure of leases, other than
short-term and low-value assets, and replaces IAS 17. IFRS 16 will
become effective for accounting periods starting on or after 1
January 2019.
IFRS 16 will result in the recognition of a lease liability and
corresponding right of use asset on the Group's balance sheet in
respect of the majority of operating leases, which predominantly
represent property and vehicle transporters. It is expected that
the timing and presentation of charges recognised in the income
statement will also change as a result of the new standard, with
current operating lease expenses replaced by depreciation of the
right of use asset and interest on the lease liability. Management
continue to assess the impact of the new standard.
3. SEGMENTAL REPORTING
Key Performance Indicator - adjusted EBITDA
Management uses an adjusted profit measure to monitor the
ongoing profitability of the Group, which is defined as Earnings
before interest, taxation, depreciation and amortisation ('EBITDA')
adjusted for significant or non-recurring items. The significant or
non-recurring items that are excluded from EBITDA to calculate
adjusted EBITDA are as follows:
-- acquisition expenses and gains and losses on business
combinations, disposals and changes in ownership;
-- income and expenses that are significant or non-recurring or
non-trading in nature, including business closure costs,
restructuring costs and onerous lease provisions;
-- impairment charges and accelerated depreciation and
amortisation on property, plant and equipment, intangibles and
goodwill;
-- amortisation of intangible assets arising on acquisition of businesses.
The Directors primarily use the adjusted EBITDA measure when
making decisions about the Group's activities as it is the most
reliable and relevant profit measure across all segments. As this
is a non-GAAP measure, adjusted EBITDA measures used by other
entities may not be calculated in the same way and hence are not
directly comparable.
Management has determined the operating segments based on the
operating reports reviewed by the Board of Directors that are used
both to assess performance and make strategic decisions. Management
has identified that the Board of Directors is the chief operating
decision maker in accordance with the requirements of IFRS 8
'Operating Segments'.
The Board of Directors consider the business to be split into
the four main divisions generating revenue: Vehicle Remarketing UK,
Vehicle Remarketing International, Vehicle Buying and Automotive
Services. Group Costs comprise central head office functions and
any costs not directly attributable to the segments.
Information on segment assets and liabilities is not regularly
reported to the Board of Directors and is therefore not
disclosed.
For the 6 months ended 1 October
2017
------------------------ ----------------------------------------------------------------
Vehicle Remarketing Vehicle Automotive Group Total
Buying Services Costs
UK International
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------ ------ -------------- -------- ----------- ------- --------
Revenue
Total revenue 458.6 73.2 467.8 190.4 - 1,190.0
Inter-segment revenue (1.9) (1.1) - (15.4) - (18.4)
------------------------ ------ -------------- -------- ----------- ------- --------
Total revenue from
external customers 456.7 72.1 467.8 175.0 - 1,171.6
Adjusted EBITDA 47.3 12.8 11.7 10.9 (6.9) 75.8
Depreciation and
amortisation (5.7) (1.8) (0.8) (4.5) - (12.8)
------------------------ ------ -------------- -------- ----------- ------- --------
Adjusted operating
profit 41.6 11.0 10.9 6.4 (6.9) 63.0
------------------------ ------ -------------- -------- ----------- ------- --------
Amortisation of
acquired intangibles (9.3) (5.9) (2.9) (1.9) - (20.0)
Other significant
or non-recurring
items (0.4) - - - (1.7) (2.1)
------------------------ ------ -------------- -------- ----------- ------- --------
Operating profit 31.9 5.1 8.0 4.5 (8.6) 40.9
Finance income 0.2
Finance cost (6.2)
------------------------ ------ -------------- -------- ----------- ------- --------
Profit before taxation 34.9
======================== ====== ============== ======== =========== ======= ========
Capital expenditure 13.0 2.9 0.9 24.0 - 40.8
======================== ====== ============== ======== =========== ======= ========
Other significant or non-recurring items include premium listing
costs of GBP1.0m and divisional management restructuring costs of
GBP1.1m.
For the 6 months ended 2 October
2016
------------------------ ---------------------------------------------------------------
Vehicle Remarketing Vehicle Automotive Group Total
Buying Services Costs
UK International
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------ ------ -------------- -------- ----------- ------- -------
Revenue
Total revenue 334.4 62.9 394.7 126.9 - 918.9
Inter-segment revenue (1.3) (0.3) - (7.5) - (9.1)
------------------------ ------ -------------- -------- ----------- ------- -------
Total revenue from
external customers 333.1 62.6 394.7 119.4 - 909.8
Adjusted EBITDA 42.7 11.6 8.8 6.4 (5.0) 64.5
Depreciation and
amortisation (5.4) (1.6) (0.8) (3.2) (0.1) (11.1)
------------------------ ------ -------------- -------- ----------- ------- -------
Adjusted operating
profit 37.3 10.0 8.0 3.2 (5.1) 53.4
------------------------ ------ -------------- -------- ----------- ------- -------
Amortisation of
acquired intangibles (9.3) (5.6) (2.9) (0.9) - (18.7)
Acquisition related
items - - - - (2.2) (2.2)
Other significant
or non-recurring
items - 0.4 - 0.7 - 1.1
------------------------ ------ -------------- -------- ----------- ------- -------
Operating profit 28.0 4.8 5.1 3.0 (7.3) 33.6
Finance income 0.1
Finance cost (7.0)
------------------------ ------ -------------- -------- ----------- ------- -------
Profit before taxation 26.7
======================== ====== ============== ======== =========== ======= =======
Capital expenditure 17.1 1.2 0.5 12.5 0.5 31.8
======================== ====== ============== ======== =========== ======= =======
Acquisition costs of GBP2.2m related to the acquisition of the
Paragon Group. Other significant or non-recurring items of GBP1.1m
mainly reflected a GBP0.7m credit in respect of property.
4. CASH GENERATED FROM OPERATIONS
For the For the
6 months 6 months
ended ended
1 October 2 October
2017 2016
GBPm GBPm
--------------------------------- ----------- -----------
Cash flows from operating
activities
Profit for the period 26.2 24.3
Adjustments for:
Income tax charge 8.7 2.4
Finance income (0.2) (0.1)
Finance costs 6.2 7.0
Depreciation 7.7 6.5
Amortisation 25.1 23.3
Loss on sale of property,
plant and equipment 0.3 0.1
Equity-settled share based
payments 0.7 0.7
Retirement benefit obligations 0.1 (0.2)
Acquisition costs - 2.2
Changes in working capital:
Inventories (13.3) (23.6)
Trade and other receivables (3.7) (22.9)
Trade and other payables (1.9) 54.6
Provisions (0.6) 0.7
--------------------------------- ----------- -----------
Cash generated from operations 55.3 75.0
================================= =========== ===========
5. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing net profit
for the period attributable to ordinary shareholders by the
weighted average number of Ordinary shares outstanding during the
period.
For the For the
6 months 6 months
ended ended
1 October 2 October
2017 2016
GBPm GBPm
Profit for the period attributable
to equity shareholders (GBPm) 25.9 24.2
--------------------------------------- ----------- -----------
m m
--------------------------------------- ----------- -----------
Weighted average number of shares
used in calculating basic earnings
per share 780.2 780.2
Incremental shares in respect of
employee share schemes 28.9 14.4
--------------------------------------- ----------- -----------
Weighted average number of shares
used in calculating diluted earnings
per share 809.1 794.6
--------------------------------------- ----------- -----------
Basic earnings per share (pence) 3.3 3.1
Diluted earnings per share (pence) 3.2 3.0
======================================= =========== ===========
Key Performance Indicator - adjusted earnings per share
Adjusted earnings per share is presented in addition to that
required by IAS 33, Earnings per Share, to align the adjusted
earnings measure with the performance measure reviewed by the
Directors. The Directors consider that this gives a more
appropriate indication of underlying performance. Adjusted earnings
per share are calculated by dividing net profit for the period
attributable to ordinary shareholders, adjusted for significant or
non-recurring items and their associated tax impact, by the
weighted average number of Ordinary shares outstanding during the
period.
For the For the
6 months 6 months
ended ended
1 October 2 October
2017 2016
GBPm GBPm
-------------------------------------------- ----------- -----------
Profit for the period attributable
to equity shareholders 25.9 24.2
Add back:
Significant or non-recurring items 22.1 19.8
Tax credit on significant or non-recurring
items (4.3) (7.1)
-------------------------------------------- ----------- -----------
Adjusted earnings 43.7 36.9
-------------------------------------------- ----------- -----------
m m
-------------------------------------------- ----------- -----------
Weighted average number of shares
used in calculating basic earnings
per share 780.2 780.2
Incremental shares in respect of
employee share schemes 28.9 14.4
-------------------------------------------- ----------- -----------
Weighted average number of shares
used in calculating diluted earnings
per share 809.1 794.6
-------------------------------------------- ----------- -----------
Adjusted basic earnings per share
(pence) 5.6 4.7
Adjusted diluted earnings per share
(pence) 5.4 4.6
============================================ =========== ===========
6. INCOME TAX
The income tax charge is recognised based on management's best
estimate of the weighted average annual income tax rate expected
for the full financial year.
The tax charge of GBP8.7m (2016: GBP2.4m) includes a GBP4.3m
(2016: GBP7.1m) net tax credit in relation to significant or
non-recurring items, primarily GBP4.1m (2016: GBP4.0m) in relation
to amortisation of acquired intangible assets. The underlying
effective tax rate before significant or non-recurring items is
22.9%, reflecting an increase in the Group's overseas tax
liabilities since the previous year end.
7. NON CURRENT ASSETS
Property,
Intangible plant and
assets equipment Total
GBPm GBPm GBPm
------------------------------- ----------- ----------- --------
Net book value at 2 April
2017 1,559.5 133.3 1,692.8
Additions 5.3 35.5 40.8
Disposals - (19.9) (19.9)
Depreciation and amortisation
charge (25.1) (7.7) (32.8)
Exchange difference 11.2 1.4 12.6
------------------------------- ----------- ----------- --------
Net book value at 1 October
2017 1,550.9 142.6 1,693.5
=============================== =========== =========== ========
8. BANK BORROWINGS & PARTNER FINANCE BORROWINGS
As at As at
1 October 2 April
2017 2017
GBPm GBPm
Non-current
Bank borrowings 256.8 254.9
----------------- ----------- ---------
Current
Bank borrowings 90.0 90.0
----------------- ----------- ---------
The Group has a GBP500m multi-currency facility, comprising a
GBP250m revolving facility and a GBP250m term loan. As at 1 October
2017 and 2 April 2017, the term loan has been drawn down in full,
and GBP90m of the revolving facility has also been drawn down. The
facility will run until February 2021 with an option for a further
12 months by mutual consent, with no repayment of capital due
before that time.
As at As at
1 October 2 April
2017 2017
GBPm GBPm
Partner Finance borrowings 74.4 69.0
---------------------------- ----------- ---------
The Group has an asset-backed finance facility to fund the
Partner Finance business. This is a revolving facility that allows
a drawdown of up to GBP120m. The amount is advanced solely to a
Partner Finance subsidiary in respect of specific receivables.
9. DIVIDENDS
A final dividend of GBP35.5m, 4.55p per share (2016: GBP31.2m,
4.00p per share), was paid on 29 September 2017 to shareholders on
the Register on 15 September 2017.
After the interim balance sheet date dividends of 2.6p per
qualifying Ordinary share were proposed by the Directors (Interim
2016: 2.2p per share), payable on 31 January 2018 to shareholders
on the Register on 15 December 2017. The dividends have not been
provided for.
The Company has significant distributable reserves, and the cash
generated by the operating companies in the Group can be
distributed up the Group by dividends as required.
INDEPENDENT REVIEW REPORT TO BCA MARKETPLACE PLC
Report on the condensed consolidated interim financial
statements
Our conclusion
We have reviewed BCA Marketplace plc's condensed consolidated
interim financial statements (the 'interim financial statements')
in the Interim Report of BCA Marketplace plc for the 6 month period
ended 1 October 2017. Based on our review, nothing has come to our
attention that causes us to believe that the interim financial
statements are not prepared, in all material respects, in
accordance with International Accounting Standard 34, 'Interim
Financial Reporting', as adopted by the European Union and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
What we have reviewed
The interim financial statements comprise:
-- the condensed consolidated interim balance sheet as at 1 October 2017;
-- the condensed consolidated interim income statement and
condensed consolidated interim statement of comprehensive income
for the period then ended;
-- the condensed consolidated interim cash flow statement for the period then ended;
-- the condensed consolidated interim statement of changes in
equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim Report
have been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the
European Union and the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority.
As disclosed in note 2 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Group is
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The Interim Report, including the interim financial statements,
is the responsibility of, and has been approved by, the directors.
The directors are responsible for preparing the Interim Report in
accordance with the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority.
Our responsibility is to express a conclusion on the interim
financial statements in the Interim Report based on our review.
This report, including the conclusion, has been prepared for and
only for the company for the purpose of complying with the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, 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.
What a review of interim financial statements involves
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,
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.
We have read the other information contained in the Interim
Report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants
St Albans
27 November 2017
For more information
bcamarketplaceplc.com
BCA Marketplace plc
BCA Bedford
Coronation Business Park
Kempston Hardwick
Bedford
MK43 9PR
Registered in England & Wales No. 09019615
(c) BCA Marketplace plc
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BDLLLDFFZFBK
(END) Dow Jones Newswires
November 28, 2017 02:01 ET (07:01 GMT)
Bca Marketplace (LSE:BCA)
Historical Stock Chart
From Dec 2024 to Jan 2025
Bca Marketplace (LSE:BCA)
Historical Stock Chart
From Jan 2024 to Jan 2025
