4imprint Group PLC

Earnings Release • Nov 5, 2014

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RNS Number : 2038W

4imprint Group PLC

05 November 2014

4imprint Group plc                                                                                          5 November 2014

Change in presentational currency

Comparatives presented in USD

4imprint Group plc (the "Group"), the leading international direct marketer of promotional products, announced on 24 October 2014 that it is changing the currency in which it presents its consolidated financial statements from Sterling to US dollars. A substantial portion of the Group's revenue and earnings are now denominated in US dollars and the Board has decided that a US dollar presentation will give a more meaningful view of the Group's financial performance and position.

In future, dividends will be determined in US dollars and paid in Sterling at the exchange rate at the time the dividend is determined.

In the unaudited appendix attached to this announcement the Group has presented condensed consolidated US dollar financial information. This will form the basis of the comparative US dollar financial statements to be included in the full year results for the year ending 27 December 2014 and the half year results for the six month period ending 27 June 2015.

The condensed consolidated financial information has been restated from Sterling into US dollars using the procedures as outlined below and in accordance with the requirements set out in IAS 21: "The Effects of Changes in Foreign Exchange Rates" with respect to translation to the presentational currency:

·      Items of income and expenditure, other than single material identifiable transactions, denominated in non US dollar currencies were translated into US dollars at the average exchange rate of the reporting period. Single material identifiable transactions, e.g. the sale of the SPS business, have been translated at the exchange rate at the time of the transaction;

·      assets and liabilities denominated in non US dollar currencies were translated into US dollars at the   closing rate prevailing at the balance sheet dates;

·      share capital, share premium and the capital redemption reserve have been translated at historical exchange rates; and  

·     all resulting exchange differences have been recognised in other comprehensive income and in the currency translation reserve in accordance with the Group's existing accounting policy.

The relevant exchange rates used were as follows:

	Six months ended 28 June 2014	Year ended 28 Dec 2013
£/US$ - average	1.6693	1.5641
£/US$ - period end	1.7016	1.6494

For further information, please contact:

4imprint Group plc Tel. + 44 (0) 20 7299 7201	MHP Communications Tel. + 44 (0) 20 3128 8100
John Poulter Executive Chairman Gillian Davies Group Finance Director		Reg Hoare Katie Hunt

Condensed consolidated income statement (unaudited)

		Half year 2014 $'000	Full year 2013 $'000
Continuing operations
Revenue		193,058	332,936
Operating expenses		(185,262)	(317,080)
Operating profit before exceptional items		8,816	16,253
Exceptional items		(1,020)	(397)
Operating profit		7,796	15,856
Finance income		83	88
Finance costs		-	(27)
Net pension finance charge		(591)	(1,445)
Net finance cost		(508)	(1,384)
Profit before tax		7,288	14,472
Taxation		(2,113)	(3,857)
Profit for the period from continuing operations		5,175	10,615
Discontinued operations
Loss from discontinued operations		(1,279)	(4,825)
Profit for the period		3,896	5,790
Earnings per share
Basic
From continuing operations		19.28c	40.11c
From continuing and discontinued operations		14.51c	21.88c
Diluted
From continuing operations		18.40c	38.13c
From continuing and discontinued operations		13.85c	20.80c
Underlying
From continuing operations		26.69c	55.55c

Condensed consolidated statement of comprehensive income (unaudited)

		Half year 2014 $'000	Full year 2013 $'000
Profit for the period		3,896	5,790
Other comprehensive (expense)/income
Items that may be reclassified subsequently to the income statement:
Exchange differences on translation of foreign subsidiaries		190	377
Exchange differences recycled to income statement on disposal of business		1,347	-
Items that will not be reclassified subsequently to the income statement:
Remeasurement (losses)/gains on post employment obligations		(5,176)	7,173
Tax relating to components of other comprehensive income		1,113	(3,502)
Effect of change in UK tax rate		(52)	(755)
### Other comprehensive (expense)/income net of tax		(2,578)	3,293
Total comprehensive income for the period		1,318	9,083
		Half year 2014 $'000	Full year 2013 $'000
Total comprehensive income attributable to equity Shareholders arising from - Continuing operations - Discontinued operations		1,250 68	13,908 (4,825)
		1,318	9,083

Condensed consolidated balance sheet (unaudited)

			At 28 June 2014 $'000	At 28 Dec 2013 $'000
Non current assets
Property, plant and equipment			9,046	8,803
Intangible assets			1,402	1,349
Deferred tax assets			7,257	6,324
			17,705	16,476
### Current assets
Assets held for sale			-	13,824
Inventories			3,373	3,686
Trade and other receivables			31,660	30,105
Other financial assets - bank deposits			14,634	8,165
Cash and cash equivalents			29,832	17,825
			79,499	73,605
### Current liabilities
Trade and other payables			(38,677)	(29,684)
Current tax			(1,656)	(247)
Liabilities held for sale			-	(4,364)
			(40,333)	(34,295)
Net current assets			39,166	39,310
Non current liabilities
Retirement benefit obligations			(31,879)	(27,398)
Deferred tax liability			(381)	(477)
Provisions for other liabilities and charges			(248)	(242)
			(32,508)	(28,117)
Net assets			24,363	27,669
Shareholders' equity
Share capital			18,777	17,988
Share premium reserve			68,451	68,451
Capital redemption reserve			369	369
Currency translation reserve			6,997	5,460
Retained earnings			(70,231)	(64,599)
### Total Shareholders' equity			24,363	27,669

Condensed consolidated cash flow statement (unaudited)

		Half year 2014 $'000	Full year 2013 $'000
### Cash flows from operating activities
Cash generated from operations		14,163	17,913
Net tax paid		(177)	(2,714)
Finance income		72	108
Finance costs		-	(22)
Net cash generated from operating activities		14,058	15,285
### Cash flows from investing activities
Purchases of property, plant and equipment		(843)	(1,542)
Purchases of intangible assets		(235)	(486)
Net proceeds from sale of business		9,721	1,484
Net cash generated from/(used in) investing activities		8,643	(544)
### Cash flows from financing activities
Repayment of borrowings		-	(10,064)
Capital element of finance lease payments		-	(236)
Amounts placed on deposit		(6,093)	(3,050)
Proceeds from issue of ordinary shares		789	322
Purchase of own shares		(789)	(200)
Dividends paid to Shareholders		(5,118)	(6,558)
Net cash used in financing activities		(11,211)	(19,786)
Net movement in cash and cash equivalents		11,490	(5,045)
Cash and cash equivalents at beginning of the period		17,825	22,780
Exchange gains on cash and cash equivalents		517	90
### Cash and cash equivalents at end of the period		29,832	17,825
### Analysis of cash and cash equivalents
### Cash at bank and in hand		24,047	10,815
### Short term deposits		5,785	7,010
		29,832	17,825

Segmental information

Revenue - continuing operations
	Half year 2014 $'000	Full year 2013 $'000
North America	185,094	320,035
UK and Ireland	7,964	12,901
Total	193,058	332,936

Profit - continuing operations	Underlying*		Total
	Half year 2014 $'000	Full year 2013 $'000	Half year 2014 $'000	Full year 2013 $'000
4imprint Direct Marketing	11,533	22,839	11,533	22,839
Head office	(1,844)	(3,345)	(1,844)	(3,345)
Underlying operating profit	9,689	19,494	9,689	19,494
Exceptional items - Head office			(1,020)	(397)
Share option related charges			(526)	(2,493)
Defined benefit pension scheme administrative expenses			(347)	(748)
Operating profit	9,689	19,494	7,796	15,856
Net finance income	83	61	83	61
Defined benefit pension finance charge			(591)	(1,445)
Profit before tax	9,772	19,555	7,288	14,472

* Underlying is before share option related charges, defined benefit pension charges and exceptional items.

Earnings per share

Basic, diluted and underlying

The basic, diluted and underlying earnings per share are calculated based on the following data:

	Half year 2014 $'000	Full year 2013 $'000
Profit after tax - continuing operations	5,175	10,615
Loss after tax - discontinued operations	(1,279) †	(4,825)
Profit for the period	3,896	5,790
Underlying profit after tax - continuing operations	7,165	14,700

† Includes cumulative exchange losses of $1,347,000 recycled to the income statement on disposal.

	Half year 2014 Number '000	Full year 2013 Number '000
Basic weighted average number of shares	26,847	26,463
Dilutive potential ordinary shares - employee share options	1,276	1,372
Diluted weighted average number of shares	28,123	27,835

	Half year 2014 cents	Full year 2013 cents
Basic earnings per share from continuing operations	19.28	40.11
Basic loss per share from discontinued operations	(4.77)	(18.23)
Basic earnings per share	14.51	21.88
Diluted earnings per share from continuing operations	18.40	38.13
Diluted loss per share from discontinued operations	(4.55)	(17.33)
Diluted earnings per share	13.85	20.80
Underlying basic earnings per share from continuing operations	26.69	55.55
Underlying diluted basic earnings per share from continuing operations	25.48	52.81

Cash generated from operations

	Half year 2014 $'000	Full year 2013 $'000
Operating profit  - continuing operations	7,796	15,856
- discontinued operations	(98)	1,439
Adjustments for:
Depreciation charge	678	2,133
Amortisation of intangibles	280	626
Exceptional non cash items	706	119
Decrease in exceptional accrual/provisions	(40)	(25)
Share option charges - continuing	494	1,226
- discontinued	-	17
Defined benefit pension administration charge	347	748
Contributions to defined benefit pension scheme - normal                                                                               - flexible early retirement offer	(2,853) (422)	(4,966) -
Changes in working capital:
Increase in inventories	(130)	(1,268)
Decrease/(increase) in trade and other receivables	142	(5,362)
Increase in trade and other payables	7,263	7,370
Cash generated from operations	14,163	17,913

This information is provided by RNS

The company news service from the London Stock Exchange

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