INVESTOR RELATIONS

Latest Results

Final Results for the 12 months ended 31 December 2020

STM Group plc (AIM: STM), the multi-jurisdictional financial services group, is pleased to announce its audited final results for the 12 months ended 31 December 2020.

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Financial Highlights:

 2020 (reported) 2020
(underlying)**
2019
(reported)
2019
(underlying)**
Revenue £24.0m £24.0m £23.2m £22.9m
Profit before other items* £3.6m £4.0m £3.5m £4.2m
Margin 15% 17% 15% 18%
Profit before taxation (“PBT”) (and exceptional bargain purchase gain) £2.0m £2.4m £3.9m £2.6m
Earnings per share 2.7p N/A 5.73p N/A
Cash at bank (net of borrowings) £14.8m N/A £17.2m N/A
Final dividend (2020) / second interim dividend (2019) 0.85p N/A 0.75p N/A
Total dividend 1.40p N/A 1.50p N/A

 * Profit before other items is defined as revenue less operating expenses i.e. profit before taxation, finance income and costs, depreciation, amortisation, bargain purchase gain and gain on the call options

** Underlying statistics are net of certain transactions which do not form part of the regular operations of the business as further detailed in Table 2 below

 Operational Highlights:

  • Stability of recurring revenue apparent through the Covid-19 virus
  • Focussed on keeping colleagues safe through working from home and following Governments’ guidelines and maintaining customers service levels
  • The majority of our key IT projects for improved profitability are now live with the remaining concluding in the first half of 2021. Continued focus on technology to become a key differentiator.
  • UK orientated products – Shariah SIPP and Workplace Pension Plan (“WPP”) solutions - now launched, with opportunity for international solution as well
  • WPP corporate business moving towards break-even
  • Flexible annuity pipeline building, but slower than anticipated conversion
  • Active pipeline of acquisition opportunities, particularly in the UK
Strategic focus on core activities of pension administration and life assurance, with post period end disposals of the CTS businesses

Commenting on the results and prospects for STM, Alan Kentish, Chief Executive Officer, said:

“Whilst the year has had challenges, we have achieved a great deal in progressing our three year transformation and growth strategy.  We see 2021 being a year where a number of strategic initiatives come to fruition that will build on efficiencies within the business. There is an energy and focus for the remainder of 2021 in building some key partnerships that will help drive new business volumes.  Additionally, our acquisition pipeline is active and expected to be a pillar of our future growth.

“The recent Judgment in the Carey v Adams case will have implications across the whole of the Financial Services industry who have dealings on an execution only basis.  This was a historical claim and the Options management team will continue to drive the business forward as they have done since being part of the STM team.

“STM is an increasingly streamlined and more focused business. The Board is optimistic for its future and looks forward to updating on progress in 2021.”

 

.This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.

Chairman's statement

 

I am pleased to present our 2020 financial statements which reflect another challenging but progressive year against the backdrop of the significant Covid-19 complications. We have however, made significant progress in a number of areas as we continue to implement our three-year growth strategy and have also kept our colleagues safe and protected during the pandemic.

Our operating model has come a long way since it was revised in 2019, giving much clearer demarcations of personal and Divisional accountability. We will continue to challenge and revise it where appropriate so as to adapt to changes in the marketplace, and how we need to operate.  The key criteria being that we must set a firm foundation for future profitable growth.

Following the 2019 acquisition of Options, we have further strengthened our UK operations in August 2020 with the acquisition of a small SSAS and Group Pension Plan business, that will deliver annual revenue of circa £1.7 million. This complements our aspirations of building on a stronger UK focus going forward, and we will expect to make further acquisitions in the UK in the near future.

There have been a number of important IT projects carried out during 2020, and I am pleased to say that these have progressed well, with the ‘go-live’ of Office 365 and the two administration systems for the UK businesses, alongside the two QROPS businesses due to migrate in the second quarter of 2021. These will deliver important efficiencies during the second half of 2021 and will contribute to an improvement of our operating margins going forward.

Our primary challenge during 2020 and into 2021 is how we accelerate our new business growth, which has been a frustration that I share with the executive and the wider Plc board. We have a robust and solid infrastructure that requires a healthy stream of new business. We continue to have a major focus on building our distribution network for both the UK and international markets despite Covid hindering the process. We are also actively seeking new strategic distribution partnerships in all jurisdictions.

Post period end, we realised the sale of our non-core CTSP businesses which was a key deliverable on the Group's roadmap in order to allow STM's executive management to focus on STM's core activities of pension administration and provision of life assurance wrappers. Accordingly, I am acutely conscious that our numbers for 2021 have been pared back, reflecting a spreading of our fixed head-office costs over a smaller revenue base. We are actively challenging how we can mitigate this as we continue to streamline our corporate structure to focus on our core activities of pension administration and life assurance products. In addition, we are actively reviewing our capital allocation processes to obtain a more efficient solution.

Finally, I continue to watch the developments of the Adams vs Carey case, and believe that further guidance and clarity for SIPP providers, and indeed the wider UK financial services industry which operates in an execution only environment can only be beneficial to all parties. The new case law in the original ruling, and upheld in the Court of Appeal, in relation to Conduct of Business principles will be something that future Ombudsman rulings are expected to take into account.

I would like to take this opportunity to thank the Groups Directors, executive and all our colleagues for their relentless efforts during 2020, and one of my primary concerns remains protecting the welfare of our staff, their families and our clients’ service standards in these uncertain times. I would specifically like to thank our CFO, Therese Neish for her enormous efforts and ongoing professionalism in a year where she has declared her intent to move on.

 

Duncan Crocker
Chairman

Chief Executive's statement

 

Introduction

From a macro-economic viewpoint, 2020 will be remembered as a year that kept on throwing up uncertainties, from the hard/soft Brexit debate through to the unprecedented turmoil, distress and unknown of Covid-19. It has been a hard year not only for businesses but also for people as a whole.

As a business, STM has been very fortunate that it has a solid and predictable recurring revenue base, and this has held us in good stead throughout the year. On the face of it, we have achieved a significant amount of what we set out to achieve during 2020, and into the early part of 2021.

Our colleagues across the various jurisdictions in which we have trading operations were able to successfully implement our “working-from-home” plans so that our day to day interaction with customers and other stakeholders were more or less unaffected by Covid-19. This is a credit to our management team and the various hardworking teams that have carried on their duties as usual.

Importantly, we were still able to complete one acquisition during the year and this will add to our UK recurring revenue base for 2021 and beyond. Subsequent to the year end, we successfully sold both our CTSP businesses, which were no longer core to our strategy and had struggled for organic growth under our stewardship.

Many of our 2020 building blocks are now in place that will allow increased operating margins in our trading entities. Such building blocks were focused on moving to three core IT systems across the businesses, implementing Office 365 as our underlying business tool, replacing two of our personal pension administrative systems with BOSS, our in-house pension administrative system, which now supports all our personal pensions, and finally the successful migration of our auto-enrolment business onto the ITM administrative system.

Despite recognising the significant revenue growth within our pensions business, without a doubt the biggest frustration of 2020 has been the slower than anticipated new business take-on across the Group. Certainly Covid-19 played a significant part in that. There was an expectation of some bulk transfers to Options in relation to the UK workplace pensions that were delayed or did not occur, as well as some partnership ventures particularly with regards to the UK SIPP business that have been slower to progress than anticipated. Our flexible annuity product shows significant promise in relation to future business but continues to be slower to convert than anticipated. The Plc board continues to have a focus on accelerating this.

Generally speaking, our trading subsidiaries have performed broadly as expected, albeit during 2020 we revised downwards our profit expectations on the back of the slower than anticipated new business take up, that is referred to above. Certain important milestones were achieved, including the transition of our UK workplace pension solutions business from a significant loss-making business at the time that we acquired it in 2019 into a scalable business that is expected to be profitable in 2021.

There remains significant uncertainty in the personal pensions’ environment in relation to the duties and obligations of pension administrators, particularly in the UK. The original ruling in 2020 on the Adams vs Carey case found on all counts in favour of Carey, however at the recent judgment handed down on 1 April 2021 the Court of Appeal found in favour of Mr Adams so that the setting up of the SIPP was unenforceable. This ruling is likely to have a significant impact on UK financial services businesses that have interactions with unregulated introducers. On 28 April 2021 Options sought permission from the Supreme Court to appeal the Court of Appeal judgment.

Financial Review

Financial performance in the year

The principal key performance indicators used by the Board to assess the financial performance of the Group are as per Table 1 below.

The Group has reported revenues of £24.0 million (2019: £23.3 million) in the year with profit before other items of £3.6 million (2019: £3.5 million). Whilst these measures show modest growth it is on the back of an unprecedent year in terms of the global pandemic resulting in new ways of working for our teams and financial uncertainty, which has no doubt impacted our new business levels.

Historically the business has had a large number of one off non-recurring movements such as the insurance technical revenue releases, and accounting adjustments due to acquisitions. These have been considerably less in 2020 as shown in Table 2 below. As such there are none which impact revenue so that underlying revenue is as per our reported revenue at £24.0 million (2019: £22.9 million). A small number of non-recurring costs have been incurred within operating expenses mainly in relation to integration costs and redundancies resulting in underlying profit before other items of £4.0 million (2019: £4.2 million). The decrease in underlying profit before other items is largely as a result of the higher professional indemnity insurance premiums, an increase which was seen across the market, which were introduced in September 2019 resulting in 2020 being a full year with these higher costs. This has also contributed to the slightly lower underlying profit margin of 17% (2019: 18%).

The reported profit before tax (“PBT”) is calculated after deducting net finance costs of £0.2 million (2019: £0.3 million) and various non-cash expenses such as depreciation and amortisation on both client portfolios acquired as part of the acquisitions and IT projects totalling £1.4 million (2019: £1.3 million). In addition, last year the Group also recognised a bargain purchase gain on the Options acquisition of £1.7 million as well as the value of the call options agreement in relation to these minority shares of £0.4 million, the change in valuation in 2020 was £0.1 million.

Reported PBT for the year amounted to £2.0 million (2019: £3.9 million) with underlying PBT (defined on a consistent basis with underlying revenue and profit before other items) for the year of £2.4 million (2019: £2.6 million).

Pleasingly, recurring annual revenue, which is an important key performance indicator for the Board has increased quite significantly. This has been as a result of both organic growth as well as the results no longer benefitting from the technical reserve releases which were classified as one-off as there was always a finite timeframe for these. Recurring revenue for 2020 has accounted for 85% of total revenues (2019: 77%), thus a total of £20.3 million (2019: £18.0 million).

Table 1      
KPI Definition 2020 result 2019 result
    
 
Revenue (£’000s)
 
Income derived from the provision of services.
 
23,982
 
23,251
 
Profit before other items (£’000s)
 
Revenue less operating expenses i.e. profit before taxation, finance income and costs, depreciation, amortisation, bargain purchase gain and gain on the call options.
 
3,570
 
3,475
 
Profit before other items margins (%)
 
Profit before other items divided by revenue.
 
15%
 
15%
 
Profit before tax
 
Profit before taxation.
 
2,020
 
3,923
    
 
Underlying revenue (£’000)
 
Revenue net of non-recurring costs and other exceptional items including bargain purchase gains and technical reserve releases that do not form part of the normal course of business as per Table 2 below.
 
23,982
 
22,911
 
Underlying profit before other items (£’000s)
 
Profit before other items net of non-recurring costs and other exceptional items including bargain purchase gains and technical reserve releases that do not form part of the normal course of business as per Table 2 below.
 
4,034
 
4,235
 
Underlying profit before tax (£’000s)
 
Profit before tax net of non-recurring costs and other exceptional items including bargain purchase gains and technical reserve releases that do not form part of the normal course of business as per Table 2 below.
 
2,425
 
2,565
 
Underlying profit margins (%)
 
Underlying profit before other items divided by revenue.
 
17%
 
18%
    
 
Recurring revenue (£’000s)
 
Revenue derived from annual management charges and/or contractual fixed fee agreements.
 
20,334
 
18,025


Table 2      
Revenue Profit before other items Profit before tax
2020
£000’s
2019
£000’s
2020
£000’s
2019
£000’s
2020
£000’s
2019
£000’s
Reported measure 23,982 23,251 3,570 3,475 2,020 3,923
Less: release on technical reserve (946) (946) (946)
Add/(less): adjustment due to revenue recognition policy changes on acquisitions 606 606 606
Less: bargain purchase gain on acquisition and gain on call options (59) (2,118)
Add: integration and acquisition costs 179 461 179 461
Add: other non-recurring costs 285 639 285 639
Underlying measure 23,982 22,911 4,034 4,235 2,425 2,565


Tax Charge and Earnings per Share

The tax charge for the year was £0.4 million (2019: £0.5 million). This is an effective tax rate of 20% (2019: 13%) which is in line with expectations.

Earnings per share (“EPS”) for 2020 is 2.70p compared to 5.73p for 2019 due to the higher PBT in 2019 as a result of the bargain purchase gain. Diluted earnings per share for 2019 took into consideration the long-term incentive plan which was in existence for part of 2019. There was no dilutive factor in 2020 as such the diluted EPS for 2020 is also 2.70p (2019: 5.64p).

Cashflows

Cash and cash equivalents amounted to £16.4 million as at 31 December 2020 (2019: £18.4 million) with net cash inflow from operating activities of £2.3 million for the year ended 31 December 2020 (2019: £3.1 million).

During the year the Company repaid the one-year bank loan of £1.2 million taken out in 2019. In addition, during the year the Company signed a credit facility with Royal Bank of Scotland (International) Ltd for £5.5 million. The facility has a 5-year term with capital repayments structured over ten years and a final instalment to settle the outstanding balance in full at the end of the 5 years. The Company drew down £1.6 million of this facility as part of the Berkeley Burke acquisition, all of which was outstanding at the year end.    

As such, net cash and cash equivalents as at 31 December 2020 were £14.8 million (2019: £17.2 million).

As would be expected for a Group regulated in a number of jurisdictions, a significant proportion of this balance forms part of the regulatory and solvency requirements. It is not possible to determine exactly how much of the cash and cash equivalents are required for solvency purposes as other assets can be used to support the regulatory solvency requirement. The total regulatory capital requirement across the Group as at 31 December 2020 was £18.3 million (2019: £17.4 million).

The balance sheet also gives visibility of future revenue and cash generation and, in line with all administration services businesses, the Group had accrued income in the form of work performed for clients but not yet billed of £1.3 million as at the year end (2019: £1.2 million). Additionally, deferred income (a liability in the statement of financial position) relating to annual fees invoiced but not yet earned stood at £3.6 million (2019: £4.2 million). Both these figures give good visibility of cash collections and in the case of deferred income revenue still to be earned through the Income Statement in the coming months. 

Other large balance sheet items relate to trade and other receivables of £5.5 million as at 31 December 2020 (2019: £5.8 million) and a new balance in 2020 for assets held for sale. It is a requirement of accounting standards to reflect all assets held for sale separately on the Statement of Financial Position thus this is purely a reallocation of the net assets and goodwill in relation to these assets held for sale.  

As required by accounting standards (IAS 37 – Provisions, Contingent Liabilities and Contingent Assets) consideration has had to be given as to whether the Court of Appeal judgment against Options has given rise to a provision as to the potential financial obligation which could arise in the future and whether such a provision can be reliably estimated. Whilst permission to appeal this judgment has been sought from the Supreme Court a provision has been reflected in the Balance Sheet within trade and other payables. Given that the ruling made in Mr Adams case is fact specific it is difficult to assess the exact obligation that could arise on other claims based on this one case. An estimate has been arrived at by considering a cohort of claims which may be deemed to have similar characteristics to Mr Adams’ claim. This is covered by professional indemnity insurance and thus has also been reflected within trade and other receivables.

Dividend

I am pleased to advise that the Board is recommending the payment of a final dividend of 0.85p per share (2019: 0.75p per share), an increase of 13% from prior year. This together with the interim dividend paid of 0.55p in November 2020 (2019: 0.75p) makes a proposed total dividend for the year of 1.40p per share (2019: 1.50p).

Subject to approval at the Company’s Annual General Meeting to be held on 24 June 2021, the final dividend will be paid on 30 June 2021 to shareholders on the register at the close of business on 28 May 2021. The ordinary shares will be marked ex-dividend on 27 May 2021.

Operational Performance

Pensions

Our pension administration businesses continue to be the life-blood of our group, and the corner stone to our profitability. The Options acquisition made in 2019 has shown significant revenue growth in 2020 and the integration savings expected from the SIPP business have now started to come through. In addition, the Berkeley Burke acquisition in 2020 is also generating both revenue and profit contributions in the 5-month period since acquisition. 

Whilst new business levels were slower to come through than we originally expected as a result of the global pandemic impact they were still higher volumes than in prior year within the SIPP and auto-enrolment businesses. A total of 585 SIPPS were signed up in 2020 compared to 452 in 2019. In addition, the auto-enrolment business saw 40,000 new members since acquisition to 31 December 2019 as compared to 72,000 new members in 2020.

Total revenue across our pensions businesses amounted to £16.5 million (2019: £14.1 million) and accounted for 69% of total Group revenue (2019: 61%). In addition, recurring revenues for the pension businesses remain high at 93% (2019: 90%).

The administration of our ROPS products continues to be our largest revenue generator accounting for £10.1 million of revenue (2019: £10.1 million). This administration is carried out in Malta and Gibraltar with the revenue continuing to be split 75% and 25% respectively as was the case in 2019. As has been known for a number of years, this product is no longer a growth factor as a result of changes in the UK pension legislation in 2017. Whilst we continue to receive a small number of new members from EEA countries (203 in 2020 compared to 225 in 2019) the attrition rate is increasing as we see our member profile age and take advantage of flexi access benefits in Malta. The attrition rate in 2020 was 6% (2019: 5%).

The SIPP businesses, both Options Personal Pensions and London & Colonial Services Limited, have contributed total revenues of £3.5 million (2019: £2.7 million). The increase in revenues is a combination of now having the benefit of a full year of Options as well as organic growth. The administration for both these businesses is now being carried out from the Milton Keynes offices and the integration savings expected are now starting to come through. The final aspect of this integration, being the IT migration, happened towards the end of the year and thus the benefits will come through in 2021.

As mentioned above the auto-enrolment business saw a significant increase in members and this has resulted in increased revenues for the year of £2.2 million (2019: £1.3 million). Whilst this business remains break-even we expect it to become a profit generator for the Group during the early part of 2021.

The final revenue stream of the pensions divisions comes from the recently acquired Berkeley Burke companies. This acquisition came with a small SSAS business and a Group Pension Plan business providing third party administration. The SSAS business contributed revenues of £0.1 million in the year with the Group Pension Plan generating revenue of £0.6 million.

Life Assurance

The 2020 combined revenue figure was £3.7 million compared to £4.8 million for 2019. The main reason for the decrease is due to the final release of £1.0 million in 2019 in relation to the technical reserve which came with the London & Colonial acquisition made in 2016. Adjusting for this one-off transaction results in similar revenue figures year on year.

Whilst the business saw some new business materialise through the launch of the flexible annuity products this growth has made up for the loss of interest income as a result of the decreased interest rates and natural attrition on the existing client portfolios.

Our flexible annuity products aimed at the UK market remain the key focus for organic growth within our life businesses. As previously reported our pipeline of potential new business remains significant, albeit, as mentioned above the length of time for that to convert into new business is longer than we originally envisaged.

In a similar manner to that of our pensions administration businesses, recurring revenue is a significant proportion of revenue being 94% in 2020 (2019: 75% due to the one-off technical reserve release of £1.0 million distorting this percentage).

Corporate and Trustee Services (CTS)

Turnover from the Corporate and Trustee Services (CTS) division for the year was £3.2 million (2019: £3.7 million) thus accounting for 13% of the Group’s total turnover (2019: 16%). 

Our Gibraltar business contributed 53% (2019: 48%) of this revenue, with Jersey contributing the other 47% (2019: 52%).

As noted in previous year’s reports, the CTS environment and sector remains challenging, and it is fully recognised by the Group that this revenue stream was not a core area going forward.

Subsequent to the year end the Company has sold off both its CTS businesses. On 23 March 2021 it sold the Gibraltar business to the privately-owned Sovereign Group which already has a significant presence in Gibraltar, and on 8 May 2021 it sold the Jersey business to the privately-owned Imperium Group which has its head office in Guernsey. Part of ensuring that we exited the CTS sector in an orderly manner was ensuring that both our work colleagues and our CTS clients would be well looked after going forward. I am pleased to say that this will be the case with the new respective owners of each business.

Outlook

Our trading outlook for the year remains in line with management's expectations and we believe the Group is positioned to grow, both organically and by acquisition.

2021 is all about capitalising on the hard work carried out in 2020; ensuring the efficiency benefits of the completed IT projects fully materialise, and the partnerships that were in their infancy in 2020 truly blossom to meet the management team’s expectations. We continue to look at entering further key distribution partnerships for our core products with a view to accelerate organic growth in these areas.

There continues to be a strong focus on bringing products to market and ensuring we generate that new business growth that we know our product offerings and trading operations are capable of. In this regard, we must balance our governance structure and controls against a background of ambitious growth as an AIM listed company.

We anticipate that there will be further clarity given in relation to the duties of UK SIPP providers following the latest judgment by the Court of Appeal. On 28 April 2021 Options sought permission from the Supreme Court to appeal this judgment. It is anticipated that the outcome of this request will not be known for a further few months albeit the company is well protected financially due to the insurance protections it has in place. Importantly, the Court of Appeal upheld the Judge of first instance decision in relation to Carey acting correctly under the FCA’s Conduct of Business principles, and this new law hopefully will be taken into account in future Ombudsman rulings.

A number of key initiatives will conclude in the first half of 2021, including a capital management review as to how we can be more efficient with capital across our business; and we will continue to look to streamline our trading operations so that we focus purely on our core activities of pension administration and provision of life assurance “wrappers”.

The Board remains fully committed to our acquisition strategy, and see this as an important pillar of our overall growth aspirations.

I would like to take this opportunity to thank all my STM colleagues for their continued hard work and professionalism in carrying out their duties, specifically at such a time of change and uncertainty.

Finally, it would be remiss of me not to single-out Therese, our CFO for the last seven years, to thank her for all her hard work over those years, and for the support she has given to both me personally and the business overall during some very difficult times. Whilst she will be with the business for the foreseeable future, whilst we recruit her replacement, I wish her success in the next step of her career.

I look forward to updating the market during the course of 2021 with our progress.

 

 

Alan Kentish
Chief Executive Officer

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year from 1 January 2020 to 31 December 2020

 Note 31 December 2020
£000’s
31 December 2019
£000’s
Revenue 6,7 23,982 23,251
Administrative expenses 0 (20,412) (19,776)
Profit before other items  3,570 3,475
OTHER ITEMS    
Bargain purchase gain  1,702
Gains on revaluation of financial instruments 5 59 416
Finance costs (246) (325)
Depreciation and amortisation 10,11 (1,363) (1,345)
Profit before taxation  2,020 3,923
Taxation  (413) (520)
Profit after taxation  1,607 3,403
OTHER COMPREHENSIVE INCOME    
Items that are or may be reclassified to profit or loss    
Foreign currency translation differences for foreign operations (1) (97)
Total other comprehensive loss  (1) (97)
Total comprehensive income for the year  1,606 3,306
Profit attributable to:    
Owners of the Company 1,777 3,756
Non-Controlling Interests (170) (353)
 1,607 3,403
Total comprehensive income attributable to:    
Owners of the Company 1,776 3,659
Non-Controlling Interests (170) (353)
  1,606 3,306
Earnings per share basic (pence) 16 2.70 5.73
Earnings per share diluted (pence) 16 2.70 5.64

 

The results for 2020 relate to continuing activities. Discontinued activities in 2019 are disclosed in note 3.

The notes on the accounts form an integral part of these financial statements

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 December 2020

 Note31 December 2020
£000’s
31 December 2019
£000’s
ASSETS    
Non-current assets    
Property, plant and equipment 10 1,970 2,953
Intangible assets 11 19,912 20,488
Financial assets 5 475 416
Deferred tax asset  75 92
Total non-current assets  22,432 23,949
Current assets    
Accrued income  1,319 1,186
Trade and other receivables 14 9,073 5,765
Cash and cash equivalents 12 16,409 18,406
Assets held for sale 13 5,978
Total current assets  32,779 25,357
Total assets  55,211 49,306
EQUITY    
Called up share capital 15 59 59
Share premium account 15 22,372 22,372
Retained earnings  13,541 12,536
Other reserves  (447) (446)
Equity attributable to owners of the Company  35,525 34,521
Non-controlling interest  (445) (275)
Total equity  35,080 34,246
LIABILITIES    
Current liabilities    
Liabilities for current tax  1,197 1,083
Trade and other payables 14 14,974 11,634
Liabilities directly associated with assets held for sale 13 1,154
Total current liabilities  17,325 12,717
Non current liabilities    
Other payables  2,806 2,343
Total non-current liabilities  2,806 2,343
Total liabilities and equity  55,211 49,306
   

 

CONSOLIDATED CASH FLOW STATEMENT
For the year from 1 January 2020 to 31 December 2020

 Note 31 December 2020
£000’s
31 December 2019
£000’s
OPERATING ACTIVITIES    
Profit for the year before tax  2,020 3,923
ADJUSTMENTS FOR:    
Depreciation of property, plant and equipment 10 793 773
Amortisation of intangible assets 11 570 572
Write-off of intangible assets 11 71
Loss on sale of fixed asset   5
Taxation paid (299) (345)
Bargain purchase gain   (1,702)
Unrealised gains on financial instruments at FVTPL 5 (59) (416)
Share based payments 18
(Increase)/decrease in trade and other receivables  (215) 827
Increase in accrued income (485) (301)
Decrease in trade and other payables  (12) (326)
Net cash from operating activities 2,313 3,099
INVESTING ACTIVITIES  
Disposal of investments   74
Purchase of property, plant and equipment 10 (70) (117)
Increase in intangible assets 11 (875) (160)
Consideration paid on acquisition of subsidiary 4 (1,447) (350)
Cash acquired on acquisition of subsidiary 4 27 1,116
Reclassification to assets held for sale 13 (725)
Net cash used in investing activities (3,090) 563
CASH FLOWS FROM FINANCING ACTIVITIES  
Proceeds from bank loans  1,600 1,200
Bank loan repayment  (1,200) (1,650)
Lease liabilities paid  (843) (745)
Treasury shares purchased   (117)
Dividends paid 15 (772) (1,218)
Net cash from financing activities (1,215) (2,530)
(Decrease)/increase in cash and cash equivalents (1,992) 1,132
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS  
Analysis of cash and cash equivalents during the year    
(Decrease)/increase in cash and cash equivalents (1,992) 1,132
Effect of movements in exchange rates on cash and cash equivalents (5) 7
Balance at start of year 18,406 17,267
Balance at end of year 12 16,409 18,406

 

STATEMENT OF CONSOLIDATED CHANGES IN EQUITY
For the year from 1 January 2020 to 31 December 2020

  Share
Capital
£000’s
Share
Premium
£000’s
Retained
Earnings
£000’s
Treasury
Shares
£000’s
Foreign Currency Translation
Reserve
£000’s
Shares
Based
Payments
Reserve
£000’s
Total
£000’s
Non-Controlling Interests
£000’s
Total Equity
£000’s
Balance at
1 January 2019
59 22,372 9,998 (432) 38 144 32,179 32,179
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Profit for the year 3,756 3,756 (353) 3,403
Other comprehensive income
Foreign currency translation differences (97) (97) (97)
Transactions with owners, recorded directly in equity
Dividend paid (1,218) (1,218) (1,218)
Treasury shares purchased (117) (117) (117)
Share based payments 18 18 18
Changes in ownership interest
Acquisition of subsidiary with NCI 78 78
31 December 2019 and
1 January 2020 59 22,372 12,536 (549) (59) 162 34,521 (275) 34,246
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
Profit for the year1,7771,777(170)1,607
Other comprehensive income
Foreign currency translation differences(1) (1) (1)
Transactions with owners, recorded directly in equity
Dividend paid(772) (772) (772)
Treasury shares purchased -–
Share based payments
Changes in ownership interest
At 31 December 2020 59 22,372 13,541 (549) (60) 162 35,525 (445) 35,080

 

Page last up-dated: 11 May 2021