TIDMPGY
RNS Number : 4714X
Progility PLC
24 November 2017
24 November 2017
The information communicated in this announcement contains
inside information for the purposes of Article 7 of Regulation
596/2014.
Progility plc
("Progility" or "the Company" or "the Group")
Final Results
Progility plc (AIM: PGY) is the holding company of a systems
integration and project management services group which has been
created to provide a range of project management services including
innovative and market leading technology solutions.
Chairman's Statement
I am pleased to present Progility's results for the twelve
months to 30 June 2017. Our focus during the year has been to seek
further improvement in the efficiency and effectiveness of our
operations within our three business sectors; Professional
Services, (comprising our training and recruitment businesses),
Healthcare (comprising Starkstrom) and Communications (comprising
our technology businesses in India and Australia).
Financial Performance
Overall revenue was GBP74.7 million, an increase of 21% from
continuing operations, which is broadly in line with our revenue
growth in the first half. Of this increase of GBP13.1 million,
GBP10.5 million arises in our Communications segment where
underlying revenue growth of 17% in India and 6% in Australia
translated into sterling growth of 34% and 26% respectively.
Our reported operating profit on continuing activities was
GBP3.4 million. This was after crediting GBP1.0 million arising
from the release of provisions in our Indian business. Our
operating profit before highlighted items was GBP2.45 million as
compared to a loss of GBP0.1 million in the prior year. We achieved
a reported profit before tax of GBP0.1 million (2016 a loss of
GBP1.4 million). Our strategic report contains more commentary on
our three business areas.
Management and the Board
During the year we have changed the senior management in our
Australian business and have continued to work on improving the
operational management throughout the group.
I have remained both Chairman and interim Chief Executive
throughout the period and I am now working with a senior
experienced consultant to implement the next stage of operational
effectiveness and to re-examine the potential for the group's
constituent businesses and the strategic direction of the
group.
During the year the Board of Directors has remained
unchanged.
Prospects
Although the last year has shown substantial progress we have
still not yet achieved acceptable financial performance, neither
have we raised our operational efficiency and processes to an
acceptable level.
The next year will be focussed on embedding greater operational
controls and efficiencies and ensuring that this will be reflected
in long term consistent financial performance. Progress in the
current year may potentially be held back as we implement the
necessary changes.
Wayne Bos
Executive Chairman
Strategic Report
Progility Plc - Overview
The Progility Group comprises three business segments:
Professional Services, (comprising the training and recruitment
businesses), Healthcare (comprising Starkstrom) and Communications
(comprising our technology businesses in India and Australia).
The group continues to be run as a portfolio. Mergers,
acquisitions and disposals are considered when the opportunity to
generate above average returns arises. The current and prior period
saw no transactions occur.
Principal activity
The principal activities of the Group during the period, as
outlined above, are Professional Services, Healthcare and
Communications.
Corporate management and segmental reporting
The Group's global headquarters remain in central London, to
suit the diverse needs of the various businesses within the Group
and is collocated with our professional services London based
operations. Operational management is delegated to the senior
management in each segment, with a very small team in corporate
headquarters now maintaining oversight of business performance and
control over cash management. The annual budget process has become
increasingly rigorous and will continue to be improved with greater
accountability and transparency being provided to the group.
Our business is managed through three business segments to
maximize our ability to communicate and to deliver our full range
of products and expertise to our key clients' decision makers
across the diverse territories and time zones in which we operate.
These three segments reflect the management responsibility and
accounting arrangements used to manage and report upon the
performance of the business.
Key performance indicators (KPI's) for each business are
revenue, gross profit margin and operating profit.
The Group's chief operating decision maker remains the Executive
Chairman who reviews and considers these reports at the formal
board meetings and in regular dialogue with the senior management
in each segment.
Business Review
Professional Services
As reported As reported
Year ended Year ended
30.6.17 30.6.17 30.6.16 30.6.16
GBP000 GBP000 GBP000 GBP000
Revenue Segment Revenue Segment
Profit Profit
Professional Services
continuing operations 15,310 1,277 15,924 1,087
Professional Services
discontinued operations 416 1 824 (268)
Professional Services
total 15,726 1,278 16,748 819
The founding unit of the Group, the Training business, operates
under the ILX brand. ILX is a leading provider of training in best
practice for programme, project and IT service management,
including strategic programme and project management consulting
solutions. ILX also develops bespoke training courses for
large-scale IT migration and transformation projects. We deliver
ILX services from offices in the UK, Dubai and Australia, with
partnerships extending into Europe and the US.
TFPL, Sue Hill and Progility Recruitment are our UK-based
recruitment services brands. TFPL became part of the Group in July
2014 with Sue Hill joining in November 2014. Together they form a
recruitment division which has access to a pool of quality assured
candidates trained in, amongst other skills, project management
services and digital information management. Obrar is a
consulting-led project management services company, with over 30
years' experience of delivering technology and people solutions in
the UK and internationally. Obrar focuses on multimedia-driven
contact centres, corporate technology infrastructure and associated
operational change management.
Woodspeen Training works with individuals and companies across a
range of occupational areas, led by an experienced team of advisers
and trainers, operating from four locations across the UK,
enhancing young people's skills and helping them into work.
Overall revenue of this segment fell by 6%, while operating
profits improved by 56%, a result of better margins in the ILX and
Woodspeen training businesses and the elimination of losses from
the southern operations of Woodspeen, treated as a discontinued
activity as they are being progressively wound down.
During the year the ILX training business achieved revenue ahead
of the prior year with improved operating margins. This year has
seen a turnaround in the performance of the business with
improvements in operational efficiency and marketing effectiveness
being translated into an improved financial performance.
The recruitment business, which specialises in both temporary
and permanent resources in information management, has had a
challenging year with differing performance across the various
industry categories of our clients. Net fee income fell across the
business, largely due to difficult trading conditions within the
financial services sector with uncertainty surrounding Brexit. The
core markets of the recruitment business (Knowledge and Information
Management) remain favourable and profitable and we are investing
in new areas for the future. As part of this diversification of
revenue streams, we are delighted to have been awarded a place on a
key government contract which we see providing excellent growth
opportunities over the next few years. The business remains
focussed on building its proposition and developing new markets,
especially the areas of Project Management and Data
Protection/Privacy.
Woodspeen's vocational training operations have faced a tough
year operating in a sector that has seen significant structural
changes. This notwithstanding it has completed its restructure and
grown its manufacturing business significantly, winning multi-year
contracts with large automotive and aerospace manufacturing
clients. The business is now profitable, contributing GBP3.3
million to sector revenue and GBP0.2 million to sector profit, a
much improved performance over the prior year. The decision to
cease providing training in the south of the UK, which was made in
the previous financial year, has also seen the elimination of
losses in that part of the business. Woodspeen is also now sized
and staffed appropriately to harness the opportunities brought by
the Government's newly introduced 'Apprenticeship Reforms'.
Healthcare
As reported As reported
Year ended Year ended
30.6.17 30.6.17 30.6.16 30.6.16
GBP000 GBP000 GBP000 GBP000
Revenue Segment Revenue Segment
Profit Profit
Healthcare 14,281 1,433 11,148 62
Healthcare comprises the activities of the Starkstrom Group, the
operating theatre and critical care equipment business, which
delivers and installs advanced medical equipment and is a leading
provider of fully integrated solutions, with over 40 years'
experience in the UK.
The year saw a particularly strong performance by Starkstrom
where the turnkey strategy gained significant momentum and helped
to secure several large design and build projects in excess of
GBP1m, along with a variety of state of the art hybrid operating
theatres. The year also saw the addition of new product lines where
large orders were secured. This was particularly satisfying as one
of the new product lines gained traction in an established market
with other suppliers who already have a strong reputation and large
installed customer base. These sales were also secured at
strategically important reference sites such as the University
teaching hospitals, Addenbrookes and the John Radcliffe, which will
provide a platform for continued growth.
Starkstrom achieved an operating profit of GBP1.7 million with
an operating margin of 12% .The year on year improvement was
significant, however in 2016 the division had to absorb
approximately GBP0.7 million in respect of the closure of its
activities in the middle east which needs to be taken into account
when considering the underlying improvement.
Particular focus was also given to the regulatory side of the
business, in consideration of transitioning quality standards and
our need as a manufacturer and supplier to be aligned with these
new standards, and also to be ahead of our competition. As such,
and after many months work, Starkstrom secured certification
against ISO9001 2015 and ISO13485, a major achievement. Investment
in this area will continue.
The order book has been maintained at a high level and finished
the year at GBP4.8m, leaving the business well placed to continue
the strong performance into the next financial year.
Communications
As reported As reported
Year ended Year ended
30.6.17 30.6.17 30.6.16 30.6.16
GBP000 GBP000 GBP000 GBP000
Revenue Segment Revenue Segment
Profit Profit
Communications 45,091 689 34,559 515
Communications comprises the technology businesses in Australia
and India. The Communications segment overall has shown strong
revenue growth of 30% significantly impacted by the beneficial
movement in exchange rates over the period. Underlying local
revenue growth of 17% in India and 6% in Australia translated into
sterling growth of 34% and 26% respectively. Although operating
profit in this segment grew by 34% year on year this is made up of
an improvement in the performance in Australia with a return to an
albeit small profit but a decline in Indian profitability.
Progility Technologies in Australia operates a communication
systems integration business that designs, implements, trains and
maintains technology solutions for medium and large enterprises.
Its focus is on the transport, utilities, retail and healthcare
industries in Australasia and on the mining industry globally. The
business is headquartered in Melbourne, Australia, with five
regional sales offices.
The client facing brands include:
-- Communications Australia, focused on communication systems integration;
-- CA Bearcom, Australia's largest distributor of two-way radio communications products;
-- Minerals & Energy Technologies, which designs, implements
and manages an array of integrated communications solutions for
specific mining, energy and transport projects.
In Australia the year under review saw a continuation of the
recovery started in the previous year. Revenue rose by 26% to
GBP19.6 million, 6% growth in local currency, and the business
returned to operating profitability. The market remains
challenging, but the recovery is expected to gain momentum in the
upcoming year. During the year the top management in Australia was
changed which we believe will help achieve this. The costs of this
change have been absorbed in the operating result.
Progility Technologies Pvt. Ltd, formerly known as Unify
Enterprise Communications Pvt, provides unified communications and
systems integration solutions across India and surrounding
countries. The business has significant overlap of product
offerings with Communications Australia, whilst adding extensive
service and maintenance capabilities, providing level 1, 2 and 3
support to its clients, which include over 200 hospitals under
contract in the Indian market.
Revenue contribution from our business in India grew by 34% to
GBP25.5 million, 17% growth in local currency. During the year, the
business has been stabilised across all our target business
segments (voice, video, data, surveillance and services) and we
have strengthened the Progility brand across the enterprise
market
The key growth areas in India have been video conferencing and
audio visual integration. The voice business has seen a steady
growth mainly due to better price negotiation with the product
suppliers and increased sales of Progility branded voice products
to address the fast growing SME market. The services business
achieved marginal growth over the prior year. There has been strong
customer retention year on year and a large majority of customers
entered into a comprehensive maintenance contract after
warranty.
Progility Technologies Pvt. Ltd was awarded "Partner of the year
Enterprise Segment" and Partner of the year Government segment" by
Polycom, it's original equipment supplier. The company also
received a special recognition from Polycom for the on-time
execution of a single order spread over 160 locations.
Performance Management
Highlights
-- Overall revenue grew from GBP61.6 million to GBP74.7 million an increase of 21%.
-- GBP10.5 million of the revenue growth was attributable to our
Communications segment making up almost 80% of the growth.
-- Operating profit of GBP2.45 million before highlighted items
compared to a loss of GBP0.1million in 2016.
-- Operating profit performance in the Professional services and
healthcare segments together contributed GBP1.8 million of the
improved operating profit from GBP2.1 million of increased
revenue.
Highlighted items
As reported As reported
Year ended Year ended
30.6.17 30.6.16
GBP000 GBP000
Highlighted items 1,000 1,412
In the period under review, the Group was able to release a
further GBP1.0 million of its provision made for potential tax
liabilities, when Progility Technologies Pvt Limited was acquired
at the end of 2014. The provision has been reduced to nil, as there
are now no remaining years outstanding for which pre-acquisition
related potential tax liabilities may arise.
Central corporate costs
As reported As reported
Year ended Year ended
30.6.17 30.6.16
GBP000 GBP000
Central corporate costs (952) (1,770)
Central costs comprise back office operations including
property, legal, finance, IT, communications, HR and board costs in
London. Central costs have declined following the rationalisation
exercise in the prior year, and a number of non-recurring items
incurred in the prior year were not repeated. Central costs have
been recharged to subsidiaries where possible and these costs
cannot be further allocated to CGUs beyond the allocations already
made.
Financial Review
Operating performance
The Group delivered revenues of GBP74.7 million (2016: GBP61.6
million), growth of 21.3%. Gross margins decreased slightly to
32.9% (2016: 36.7%). Operating profit before highlighted items (see
note 10) rose to GBP2.4 million (2016: GBP0.1 million loss).
Highlighted items include the release of GBP1.0 million from a
provision which arose from the acquisition of Progility
Technologies Pvt in India. No impairment charge was made relating
to goodwill in the Australian operations (2016: GBP0.6
million).
Result Underlying
for the result
period for the
ended Highlighted period
30.6.2017 items ended
30.6.2017 30.6.2017
GBP'000 GBP'000 GBP'000
Revenue - continuing operations 74,682 - 74,682
Revenue - discontinued
operations 416 - 416
Revenue - total 75,098 - 75,098
Operating profit/(loss)
- continuing operations 2,446 1,000 3,446
Operating profit/(loss)
- discontinued operations 1 - 1
Operating profit/(loss)
- total 2,447 1,000 3,447
=========== ============ ===========
Finance costs
The Group incurred net finance costs of GBP3.3 million (2016:
GBP2.7 million) during the reporting period. The year on year
increase reflects the higher levels of debt in the Group, a result
of the capitalisation of unpaid interest.
Taxation
The tax expense for the year was GBP0.6 million (2016: GBP1.0
million), lower than the prior year as a result of lower tax in
India, Australia and New Zealand.
Profit for the period and earnings per share
The loss attributable to equity shareholders was GBP0.5 million
(2016: GBP2.7 million loss) from continuing and discontinued
operations. Losses per share were 0.22 pence basic and diluted
(2016: 1.22 pence loss per share basic and diluted) from continuing
and discontinued operations.
Hive Down
Progility Plc is the AIM listed holding company of the Progility
Group. Until 30 June 2015, the United Kingdom operations of the ILX
Group training division of the business traded as part of the
Progility plc legal entity. A decision was made to hive down the
assets, liabilities and trade of the ILX training division to a
100% owned subsidiary company, ILX Group Plc, with effect from 1
July 2015. Details of the assets and liabilities transferred to ILX
Group Plc are included in the note 2 to the accounts. It should be
noted that this transaction has no impact on the consolidated
financial statements as it is intra-group.
Going Concern
The Group has prepared its accounts on a going concern basis
based on current forecasts for the period through to December 2018.
The Board believes that it can meet its day-to-day working capital
requirements from operating cash flows and its existing
facilities.
Cash flow, net debt and facilities
Cash flow
Cash generated from operating activities was GBP1.4 million
(2016: GBP1.8 million). The Group generates operating cash flow
from its product sales, maintenance contracts and from advance
payments from customers.
The Group paid GBP0.4 million in income tax during the reporting
period (2016: GBP0.6 million paid).
The Group continues to invest in its staff development, its
product range and also incurred capital expenditure in the period
relating to updates of intellectual property assets, product
development and its internal systems and equipment to improve
operating efficiency.
Net debt and facilities
At the balance sheet date the Group's debt comprised loans and
overdrafts due within one year of GBP1.3 million (2016: GBP1.2
million) and GBP19.3 million (2016: GBP18.5 million) falling due in
over one year. Of these amounts a total of GBP19.7 million
represents shareholder loans made up of GBP0.4 million of
convertible loan notes and GBP19.3 million of other notes.
Net debt at the year end, defined as all bank and third party
debt, less cash at bank, excluding shareholder loans was an asset
of GBP2.4 million (2016: asset of GBP2.8 million). This comprised:
GBP3.3 million in cash balances, less GBP0.9 million in invoice
discounting facilities.
Financial Statements
Consolidated Statement of Comprehensive Income for the Year
ended 30 June 2017
Before Highlighted Before Highlighted
Highlighted items Year Highlighted items Year
items Note ended items Note ended
30.6.2017 10 30.6.2017 30.6.2016 10 30.6.2016
Continuing
operations GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 74,682 - 74,682 61,631 - 61,631
Cost of sales (50,141) - (50,141) (39,015) - (39,015)
---------------- ------------ -------------- ------------ ------------ ----------
Gross profit 24,541 - 24,541 22,616 - 22,616
Administrative
and distribution
expenses (22,095) - (22,095) (22,722) (588) (23,310)
Other operating
income - 1,000 1,000 - 2,000 2,000
---------------- ------------ -------------- ------------ ------------ ----------
Operating profit 2,446 1,000 3,446 (106) 1,412 1,306
Financial income 132 - 132 263 - 263
Financial
expenses (3,458) - (3,458) (2,962) - (2,962)
---------------- ------------ -------------- ------------ ------------ ----------
Profit/(Loss)
before tax (880) 1,000 120 (2,805) 1,412 (1,393)
Taxation (568) - (568) (1,038) - (1,038)
---------------- ------------ -------------- ------------ ------------ ----------
Profit/(Loss)
from continuing
operations (1,448) 1,000 (448) (3,843) 1,412 (2,431)
Discontinued
operation
Profit/(loss)
from
discontinued
operations, net
of tax 1 - 1 (268) - (268)
---------------- ------------ -------------- ------------ ------------ ----------
Profit/(Loss)
for the year
attributable
to equity
shareholders (1,447) 1,000 (447) (4,111) 1,412 (2,699)
================ ============ ============== ============ ============ ==========
Items that are
or may be
reclassified
subsequently to
profit or loss
Foreign
currency
translation
differences
- foreign
operations 600 662
-------------- ----------
Other
comprehensive
income for the
year, net of tax 600 662
-------------- ----------
Total
comprehensive
Income/(loss)
for the year 153 (2,037)
============== ==========
Earnings/(loss)
per share from
continuing
operations
Basic (0.22)p (1.22)p
Diluted (0.22)p (1.22)p
Consolidated statement of Financial Position as at 30 June
2017
As at As at
30.6.2017 30.6.2016
Assets GBP'000 GBP'000
Non-current assets
Plant and equipment 937 1,029
Intangible assets 19,535 19,501
Deferred tax asset 825 709
----------- -----------
Total non-current
assets 21,297 21,239
----------- -----------
Current assets
Inventories 3,927 3,260
Trade and other receivables 17,837 14,931
Other current assets 3,088 2,827
Cash and cash equivalents 3,305 3,564
----------- -----------
Total current assets 28,157 24,582
Total assets 49,454 45,821
----------- -----------
Current liabilities
Trade and other payables (23,797) (20,309)
Deferred/contingent
consideration - (681)
Provisions (2,144) (2,650)
Tax liabilities (443) (174)
Bank and shareholder
loans (1,261) (1,174)
----------- -----------
Total current liabilities (27,645) (24,988)
----------- -----------
Non-current liabilities
Shareholder loans (19,302) (18,463)
Deferred tax liability (186) (186)
Provisions (100) (131)
----------- -----------
Total non-current
liabilities (19,588) (18,780)
----------- -----------
Total liabilities (47,233) (43,768)
----------- -----------
Net assets 2,221 2,053
=========== ===========
Equity
Issued share capital 19,967 19,967
Share premium 114 114
Other reserve 75 75
Merger reserve (14,854) (14,854)
Own shares in trust (2) (2)
Share option reserve 57 42
Retained earnings (4,067) (3,620)
Foreign currency translation
reserve 931 331
Total equity 2,221 2,053
=========== ===========
Consolidated Cash Flow Statement for the Year ended 30 June
2017
Year ended Year ended
30.6.2017 30.6.2016
GBP'000 GBP'000
Operating profit 3,446 1,038
Adjustments for:
Depreciation and amortisation 743 1,135
Loss on fixed asset disposal - 96
Impairment of intangibles - 588
Share option charge 22 31
(Increase)/decrease in inventories (499) 1,113
(Increase)/decrease in trade
and other receivables (2,077) 2,400
Increase/(decrease) trade and
other payables (276) (4,446)
Exchange difference on consolidation 31 (170)
----------- -----------
Cash generated from operations 1,390 1,785
Income taxes (paid)/recovered (357) (590)
----------- -----------
Net cash generated from operating
activities 1,033 1,195
----------- -----------
Investing activities
Interest received 132 263
Purchases of property and equipment (465) (388)
Capitalised expenditure on product
development (80) (64)
Acquisition of subsidiaries,
net of cash acquired (681) (1,361)
----------- -----------
Net cash used by investing activities (1,094) (1,550)
----------- -----------
Financing activities
Proceeds from borrowings - 2,775
Repayment of borrowings (347) (2,402)
Interest costs paid (28) (75)
Net cash from financing activities (375) 298
----------- -----------
Net change in cash and cash equivalents (436) (57)
Cash and cash equivalents at
start of year 3,564 3,350
Effect of foreign exchange rate
differences 177 271
Cash and cash equivalents at
end of year 3,305 3,564
=========== ===========
Cash and cash equivalents comprise
Cash in hand and at bank 3,305 3,564
Bank overdraft - -
3,305 3,564
=========== ===========
Statement of Changes in Equity for the year ended 30 June
2017
Called Own Foreign
up Share shares Share currency
share premium Other Merger in option translation Retained
capital account reserve reserve trust reserve reserve earnings Total
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance
at 30.6.2015 19,967 114 75 (14,854) (2) 43 (331) (953) 4,059
Options
granted - - - - - 31 - - 31
Revaluation
of own
shares - - - - - - - - -
Options
lapsed
and waived - - - - - (32) - 32 -
Transactions
with owners - - - - - (1) - 32 31
-------- -------- -------- --------- -------- -------- ------------ --------- --------
Loss for
the year - - - - - - - (2,699) (2,699)
Other
comprehensive
income:
Foreign
currency
translation
adjustment - - - - - - 662 - 662
-------- -------- -------- --------- -------- --------
Total
comprehensive
income
for the
year - - - - - - 662 (2,699) (2,037)
-------- -------- -------- --------- -------- -------- ------------ --------- --------
Balance
at 30.6.2016 19,967 114 75 (14,854) (2) 42 331 (3,620) 2,053
======== ======== ======== ========= ======== ======== ============ ========= ========
Balance
at 30.6.2016 19,967 114 75 (14,854) (2) 42 331 (3,620) 2,053
Options
granted - - - - - 22 - - 22
Revaluation
of own
shares - - - - - - - - -
Options
lapsed
and waived - - - - - (7) - - (7)
Transactions
with owners - - - - - 15 - - 15
------- ---- --- --------- ---- ---- ---- -------- ------
Profit
for the
year - - - - - - - (447) (447)
Other comprehensive
income:
Foreign
currency
translation
adjustment - - - - - - 600 - 600
------- ---- --- --------- ---- ----
Total comprehensive
income
for the
year - - - - - - 600 (447) 153
------- ---- --- --------- ---- ---- ---- -------- ------
Balance
at 30.6.2017 19,967 114 75 (14,854) (2) 57 931 (4,067) 2,221
======= ==== === ========= ==== ==== ==== ======== ======
Financial Information
The preliminary financial information does not constitute
statutory accounts within the meaning of section 434 of the
Companies Act 2006 but is derived from the audited accounts for the
years ended 30 June 2017 and 30 June 2016.
Progility plc (the "Company") is a public limited company
incorporated in England and Wales and, together with its
subsidiaries, forms the Progility group (the "Group"). These
financial statements are presented in pounds sterling which is the
Company's functional currency. All amounts have been rounded to the
nearest thousand unless otherwise indicated.
The Group financial statements were authorised for issue by the
directors on 23 November 2017.
The Group financial statements consolidate those of the Company
and its subsidiaries. The Company financial statements present
information about the Company as a separate entity and not about
its Group.
Both the Group financial statements and the Company financial
statements have been prepared and approved by the Directors in
accordance with International Financial Reporting Standards
("IFRS") as adopted by the European Union ("EU"). In publishing the
Company financial statements here together with the Group financial
statements, the Company has taken advantage of the exemption in
Section 408 of the Companies Act 2006 not to present its individual
statement of comprehensive income and related notes that form a
part of these approved financial statements.
The statutory accounts for the year ended 30 June 2017 will be
delivered to the Registrar of Companies following the Company's
Annual General Meeting. Statutory accounts for the year ended 30
June 2016 have been filed with the Registrar of Companies. The
auditor's report on those 2016 accounts was unqualified.
Basis of preparation
The preparation of the Group accounts in conformity with IFRS
requires management to make estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities
and the disclosure of contingent liabilities at the date of the
financial statements. The key accounting estimates and assumptions
are set out below. Such estimates and assumptions are based on
historical experience and various other factors that are believed
to be reasonable in the circumstances and constitute management's
best judgment of conditions at the date of the financial
statements.
In the future, actual experience may deviate from these
estimates and assumptions, which could affect the financial
statements as the original estimates and assumptions are modified,
as appropriate, in the year in which the circumstances change.
The financial statements have been prepared on the historical
cost basis as modified by financial assets and financial
liabilities (including derivative financial instruments) at fair
value.
Highlighted items
The Group incurred costs during the year which we have
highlighted. These costs, set out below, were the release of the
transfer price provision.
Year ended Year ended
30.6.2017 30.6.2016
GBP'000 GBP'000
Non-recurring
Impairment of goodwill * - 588
Release of transfer pricing provision** (1,000) (2,000)
Total highlighted items (1,461) (1,412)
=========== ===========
* Relates to the impairment of Goodwill in Progility Pty Ltd - see note 15.
** Relates to the transfer pricing provision made on the
acquisition of Progility India in Dec 2014.
Earnings per share from continuing operations
Earnings per share is calculated by dividing profits/(loss) from
continuing operations attributable to shareholders by the weighted
average number of shares in issue during the year.
Potential ordinary shares arising under potential conversion of
the convertible loan and share options outstanding are considered
anti-dilutive for the year ended 30 June 2017 and the period ended
30 June 2016. At 30 June 2017, the 3.95 million outstanding share
options were excluded from the dilution calculation as the exercise
price of 10 pence was greater than the average price for the period
in issue.
Year
Year ended ended
30.6.2017 30.6.2016
GBP'000 GBP'000
Profit/(Loss) for the year from
continuing operations attributable
to equity shareholders (448) (2,431)
============ ============
Weighted average shares 199,666,880 199,666,880
Weighted average shares for
diluted earnings per share 199,666,880 199,666,880
============ ============
Basic earnings/(loss)
per share from continuing
operations (0.22)p (1.22)p
Diluted earnings/(loss)
per share from continuing
operations (0.22)p (1.22)p
Report and Accounts
The Report and Accounts and Notice of Annual General Meeting
will be published and sent to shareholders in the next few days. It
will also be made available on the Company's website -
www.progility.com, pursuant to AIM Rule 20.
For further information, please contact:
Progility plc
Wayne Bos, Executive Chairman 020 7371 4444
www.progility.com
SPARK Advisory Partners Limited (Nominated Adviser)
Mark Brady 020 3368 3551
W H Ireland Limited (Broker)
Adrian Hadden/Mark Leonard 020 7220 1666
Note to Editors:
Group Description
Progility plc, the systems integrator and project management
services firm has three operating divisions: Professional Services,
Healthcare and Communications.
Professional Services
The Professional Services division includes ILX Training, the
TFPL, Sue Hill and Progility Recruitment UK-based recruitment
services brands, Obrar Consulting and Woodspeen Training.
The founding unit of the Group, ILX Training is a leading
provider of training in best practice for programme, project and IT
service management, including strategic programme and project
management consulting solutions. ILX also develops bespoke training
courses for large-scale IT migration and transformation projects.
We deliver ILX services from offices in the UK and Dubai and
Australia, with partnerships extending into Europe and the US.
TFPL became part of the group in July 2014 with Sue Hill joining
in November 2014. Together they form a recruitment division which
boasts a pool of quality assured candidates trained in project
management services, including digital information management
candidates. Progility Recruitment was established in January 2014
to offer specific project management recruitment services. Obrar is
a consulting-led project management services company, with over 30
years' experience of delivering technology and people solutions in
the UK and internationally. Woodspeen Training works with
individuals and companies across a range of occupational areas, led
by an experienced team of advisors and trainers, operating from
four locations across the UK, enhancing young people's skills and
helping them into work.
Communications
The Communications division comprises Progility Technologies in
Australia and India.
Progility Technologies operates a communication systems
integration business that designs, implements and maintains
solutions for medium and large enterprises with a focus on the
rail, port, oil and gas, power, water and healthcare industries in
Australia, on the healthcare, hospitality, financial services,
public sector, manufacturing, education and IT sectors in India and
on the mining industry globally.
The Australian business, which merged with the Group in October
2013, is headquartered in Melbourne, Australia, and has offices in
Sydney, Brisbane, Perth, Latrobe Valley and Castlemaine. The Indian
business which joined the Group in December 2014, is headquartered
in Mumbai and operates through a network of 21 offices throughout
India.
Healthcare
Healthcare comprises the activities of the Starkstrom Group, the
operating theatre and critical care business, which delivers and
installs advanced medical equipment and is a leading provider of
fully integrated solutions, with over 40 years' experience in the
UK sector. Acquired in July 2014, Starkstrom is headquartered in
north-west London and with a manufacturing and assembly facility in
Leicester.
Progility Finco
Progility Finco is a wholly owned subsidiary of Progility plc
which was incorporated as a special purpose vehicle in order to
issue loan notes which would be admitted to the Official List of
the Channel Island Securities Exchange Authority to help meet the
financing requirements of the Group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BBBDBGGDBGRS
(END) Dow Jones Newswires
November 24, 2017 10:59 ET (15:59 GMT)
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