11th Oct 2006 07:01
Air Partner PLC11 October 2006 Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of Unaudited Results for the year ended 31st July 2006 Air Partner is the world's leading air charter broker. The Group providesaircraft charter to industry, commerce & governments worldwide. Highlights: • Sales up 15% £140.4m (£122.5m)*• Operating profit up 15% £4.6m (£4.0m)*• Profit before tax up 16% £5.1m (£4.4m)*• Diluted EPS up 15% 34.4p (29.8p)*• Proposed final dividend up 10% 12.1p (11.0p)• Proposed full year core dividend up 10% 18.2p (16.5p)• Record financial results produced in a more normalised year of trading• Strong contribution from all products and areas of the Group• 12th consecutive year of a 10% core dividend increase• Focus on geographic and product diversity rewarded• Continued strong growth in all forms of private aviation transportation• JetCard launched to capture more of growing HNWI market• Further strengthening of team and management• Post balance sheet date acquisition of Gold Air International Limited ("Gold Air") positions the Group to take further market share in private jet market * International Financial Reporting Standard adjusted figures David Savile, Chief Executive commented: "Since 1999 Air Partner has focused on becoming the world's only true global aircharter provider. Today we have this platform secured, and Air Partner is wellplaced to optimise its unique position within the private aviation market.Having for the first time achieved profits in excess of £5 million, we hope thatthis will provide a new benchmark for the Group to maintain and exceed goingforward. " 11th October 2006 ENQUIRIES: Air Partner T: 01293 844 805 David Savile, Chief Executive Steph White, Finance Director Luxtal T: 0207 936 9790 Tom Allison T: 0778 999 8020 A presentation of the results will be held at the London Stock Exchange, 10Paternoster Square, London, EC4M 7LS at 09:30 today. To attend please contactLuxtal on T. 0207 936 9790. Note to editors: please ensure "Air Partner" is written in its correct singularform, not in the plural. Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of Unaudited Results for the year ended 31st July 2006 Chairman's Statement I am pleased to report that your Company has, once again, enjoyed a buoyant yearproducing significant growth in both sales and profit. At the time of theinterim results forward bookings were 14% ahead of the prior year and thispositive trend continued throughout the second half of the financialyear. Accordingly, Group sales grew by 15% to £140.4 million (2005: £122.5million)*, with profit before tax for the year ended 31 July 2006 up by 16% to£5.13 million (2005: £4.41million)*. Diluted earnings per share increased by 15%to 34.4p (2005: 29.8p)* and the unaudited Group cash position, as at 30September 2006, was £15.6 million (FY2005: £15.4 million). The directors haverecommended payment of a final dividend of 12.1p, making the total for the year18.2p (2005:16.5p, excluding a 20.0p special dividend) representing an increasein the core dividend of 10% for the 12th consecutive year. Air Partner's 2005 record results benefited from one off, non-repeatingcontracts, while this year has been characterised by a more normalised patternof trading and further delivery against the Group's stated strategy. Theannouncement of back-to-back record financial results is a testimony to therobustness and resilience of the Group today. Air Partner has worked hard todiversify its revenue streams both by geographically and product, therebysuccessfully positioning the Group to take advantage of the significantincreases in air travel that have occurred in the last decade. The ongoing globalisation of markets in an ever-increasing time-short societycontinues to drive growth in the aviation industry, and particularly privatecharter. Consequently, the demand for Air Partner's services is more diverse andbroad-based than ever before. In the period under review 35% of turnover camefrom the Government sector and Air Partner acted for six of the G8 group ofGovernments. In addition, increasing stringent security requirements have madeconventional airline travel more exasperating, fuelling demand for Air Partner'sprivate jet services amongst businesses, VIPs and high net worth individuals("HNWI"). The continued HNWI population growth has led to Air Partner developing a newJetCard service focused on this market. The JetCard is designed to enable usersto benefit from Air Partner's unprecedented track record flying Royalty, Headsof State, Government ministers and high level corporate executives, by allowingthem to buy private jet usage on a prepaid basis. The Group's investment inJetCard has created a world class Air Partner product, providing guaranteed jetavailability, at fixed rates and with a money-back option if our client's needschange. In line with the Group's stated strategy to invest in the growing private jetmarket, I am delighted that Air Partner is also announcing today the acquisitionof a leading London-based private jet operator, Gold Air. A full statement onthe acquisition is available on RNS, but the transaction is immediately earningsenhancing and provides Air Partner with control of the UK's newest private jetfleet, without owning the aircraft. Current trading remains strong and advanced bookings are significantly ahead ofthis time last year. The Group continues to invest at all levels for futuresuccess and accordingly, your board remains confident of Air Partner's futuresuccess. * International Financial Reporting Standard adjusted comparatives Tony MackChairman Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of Unaudited Results for the year ended 31st July 2006 Chief Executive's Review It is extremely pleasing to report on yet another strong year for the Group. Theresults reinforce our belief in our corporate strategy which continues todeliver double-digit percentage growth in both sales and profit, and allows usto pay increasing dividends for our shareholders. It also provides us with realevidence that our investment into people, management and training is beingrewarded. Although Air Partner has reported two consecutive record financial years, theywere strikingly different in composure. 2005 was driven by five significantone-off contracts, but 2006 was notable for its wider spread of business,pleasingly derived from meaningful contributions across the whole Group; all ofAir Partner's established territories were profitable and all but two increasedsales or profitability. This provides evidence that the Group is integrallystrong and that each part is a net positive contributor. In addition our fourstart-up offices Japan, Italy, US West Coast, and Spain are on track forprofitability in line with internal budgets. The successes in the period underreview stem from a strong market, an efficient structure, advanced team skills,real perseverance and effective management. They are a testament to the Group'sfocus on diversifying its earnings by geography, product and industry sector. The rapid growth in the private jet charter market is driven by three keyfactors: strong Western economies, an increasingly 'cash-rich time-poor'society, and a mass air-transport network burdened by heightened securitymeasures. In addition, growing personal and corporate wealth, dependence onlow-cost carriers and fears over global security, have all helped push customerstowards the services provided by Air Partner. The Group does not expect any ofthese factors to diminish in the foreseeable future. However, to lay the credit of these results solely at the door of themarketplace would be to deny the extraordinary efforts of our teams who, acrosseach and every shift, have fully utilised the opportunities presented to them.It is through their professionalism that Air Partner continues to build itsoutstanding reputation for successful flights, including some of the mostdemanding of missions that are undertaken by the civilian sector today. Theresult is not only another record year, but a pointer to the Group's potentialfuture profitability. The increase in sales over 2005 in logistical terms equates to almost 5,000additional flights, with most of this in the second half of the year. While thishas challenged our teams, their commitment has been outstanding in coveringadditional workloads while new team members have been recruited and trained.Hence we continue to invest for growth on all fronts and I am pleased to reportthat in line with this our active client numbers have increased by 18% in thelast 12 months. The Group operates in three key sectors: Government, Corporate, and Private(High net worth individual or "HNWI"). Air Partner is the leading supplier tothe Government sector and this year has worked with six of the G8, and a further20 smaller Governments and Heads of State. In addition, we remain a leadingplayer in the corporate sector providing solutions to complex itineraries forsome of the largest companies in the world. In the year under review both theGovernment and Corporate sectors have provided good levels of business and theteams have performed well. Last year the Group announced that it would make significant investment in thedeveloping its position in the HNWI Jet-for-Leisure market, and our launch ofThe JetCard (www.JetCard.co.uk) in July 2006 represents a planned £2 millioncommitment over the next two years. In addition to this, today we announced theacquisition of Gold Air, a London-based private jet operator and aircraftmanagement company for £4.4 million. These two strategic moves provide us withan unrivalled base from which to profitably build market share in the HNWIsector and in doing so, the Group's Private sector will increase its competitionwith fractional ownership schemes like US rival Netjets. NetJets was the firstmover in the European jet card market, and should be credited with increasingthe awareness and acceptability of private jet travel; over the last two years asignificant number of new customers have been introduced to private jet travelthrough their prolific advertising campaigns. Today the Air Partner haspositioned itself to seek a share of this market and we are proud of our uniqueability to offer a full range of world class, branded private jet services thatoffer Air Partner's clients five different ways to access private jet use. The full details of today's acquisition of Gold Air are available on RNS.However, the earnings enhancing transaction is in line with the Group's statedstrategy to further invest in the private jet market and post the transaction,Air Partner will control the UK's newest fleet of private jets, have added 150active customers to its client base and further diversified its revenue streamsto include private jet management and sales - all without owning the fleet. The expansion of our international office network continues to serve us well,providing a greater range of opportunities from which to develop increasingbusiness. Having established a backbone of offices that spans 15,000 milesacross the key business centres, we now have the structure for further growth. Geographic Review The UK This has always been, and remains, the powerhouse of Group profitability.However the stride towards diversification of profits sees the UK now generating52% (2005: 61%) of overall Group PBT. After an impressive 2005 performance, theUK did well to continue both sales growth and fee income, as it expanded itsteam and launched the JetCard scheme, causing a small drop in profitability. We continue to secure an increasing number of contracts, both of ad hoc andshort term nature and opportunities continue in abundance. Prior to the launch of JetCard at the year-end, our existing Jet MembershipProgramme exceeded its year target in both card sales and profitability. Thiswork provides an ideal springboard for our new product. Europe Our French offices re-established their former impressive profitability trackrecord, doubling PBT over 2005 levels on sales that increased 35% year on year.This team is pre-eminent amongst its domestic competitors and their success isevidence of this. The German team saw further sales growth and new client acquisitions, despite anuncertain business environment. However, profitability was affected due totighter margins and a weaker contribution from its normally strong Austriansatellite. Since the year-end we have consolidated our Frankfurt operation intoan expanding central office in Cologne, as it takes on a larger team. This year our Italian office welcomed a new country manager, relocated to theheart of the business district in Milan, and has subsequently moved intooperational profit on the back of significant additional business. We areconfident it will be profitable by the half year. The Swiss office in Zurich continues profitably, albeit on reduced figures. Unusually for a newly-seeded office, I am pleased to report that Spain achievedprofitability in its very first year. The immediate future is also positive. The USA Now comprising three East Coast and one West Coast office, this territory nowprovides the second largest contribution, representing 27% of Group PBT. The USagain produced an extremely impressive performance, matching the exceptionalnature of last year. Client numbers increased, with over a quarter of fee incomederiving from new clients, particularly in the entertainment sector,specifically targeted by our team in San Francisco. Rest of the World Further afield, our UAE team, based at the main airport in Dubai has continuedto win new contracts and new clients. As a result, we invested in new teammembers and have doubled profitability from last year. The Asian and Far Eastern offices each provide important client and supplyfunctions for the main Western parts of the Group, where their contributionincreases local earnings. We are very pleased to have them as key components inour global team. Our Australian Leasing operation continued satisfactorily during the yearreported, as the contract matured through its 5th of 61/2 years. Post year-end,we realised the value of two of the four Metro-liners, selling them above bookvalue and with future rental compensation. We have re-invested part of the fundsin a 1995 Saab SF340B which is more than 10 years younger than our previousaverage airframe age. The Saab is a more desirable aircraft with potentiallyfirmer residuals; the move allows us to maintain a steady income flow from thestronger of our two lessees. Current Trading & Outlook While two back to back record years and more progress against our stated aims isextremely encouraging, shareholders need to remember that we have built thisbusiness on ad hoc demand. The market for air travel continues to boom, and withit, the need for exclusive air travel. Chartering your own aircraft remains theconsistent answer for clients who prefer to be in control of air travel foreither their goods or themselves. For private jet users, you decide who travels,be it your family or your business colleagues, so there are no unfamiliar faceson board and hence no security risk. You stipulate when and where you go, and inwhat degree of style, space and comfort. The strong performance of our private jet business is underpinned by the solidfoundations of the commercial aircraft division which continue to perform aheadof expectations. In today's climate of high security and longer delays, theGroup provides an ideal alternative solution to scheduled air travel, at anaffordable and high quality level. We therefore believe that our business has astrong and increasingly profitable future. Within the medium term, there willalways be the risk of cyclicality as economies vary around the world. Howeverthe progress made in recent years to diversify our earnings streams leaves usless exposed to cyclical downturns than ever before. The reality of our business is that our clients reserve aircraft at shortnotice. Today is no different, and it can be a mistake to read too much intoforward bookings; that said, our current forwards are considerably in excess ofthe comparable situation last year, reinforcing our view that the market remainsstrong, and providing cause for further encouragement. Having for the first timeachieved profits in excess of £5 million, we hope that this will provide a newbenchmark for the Group to maintain and exceed going forward. David SavileChief Executive Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of Unaudited Results for the year ended 31st July 2006 Consolidated income statement 2006 2005 Continuing operations Note £'000 £'000 ---------------------------- -------- --------- ---------Revenue 2 140,368 122,521 Cost of sales (124,819) (108,283) ---------------------------- -------- --------- ---------Gross profit 15,549 14,238 Administrative expenses (10,948) (10,263) ---------------------------- -------- --------- ---------Operating profit 4,601 3,975 Finance income 534 468 Finance costs (6) (29) ---------------------------- -------- --------- ---------Profit before tax 5,129 4,414 Taxation (1,537) (1,427) ---------------------------- -------- --------- ---------Profit for the period 3,592 2,987 ---------------------------- -------- --------- ---------Attributable to: Equity holders of the parent 3,429 2,904 Minority interests 163 83 ---------------------------- -------- --------- --------- 3,592 2,987 ---------------------------- -------- --------- ---------Earnings per share: Basic 4 35.5p 30.6p Diluted 4 34.4p 29.8p ---------------------------- -------- --------- --------- Consolidated statement of recognised income and expense 2006 2005 £'000 £'000 ---------------------------------- --------- --------- Exchange differences on translation of foreign operations (271) 135 ---------------------------------- --------- --------- Net (expense)/income recognised directly in equity (271) 135 Profit for the period 3,592 2,987 ---------------------------------- --------- ---------Total recognised income and expense for the period 3,321 3,122 ---------------------------------- --------- ---------Attributable to: Equity holders of the parent 3,158 3,039 Minority interests 163 83 ---------------------------------- --------- --------- 3,321 3,122 ---------------------------------- --------- --------- Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of Unaudited Results for the year ended 31st July 2006 Consolidated balance sheet 2006 2005 Note £'000 £'000 ------------------------ ------ ----------- -----------Assets Non-current assets Property, plant and equipment 425 2,373 Deferred tax assets 315 228 ------------------------ ------ ----------- ----------- 740 2,601 ------------------------ ------ ----------- -----------Current assets Trade and other receivables 23,613 11,691 Cash and cash equivalents 11,931 15,437 ------------------------ ------ ----------- ----------- 35,544 27,128 ------------------------ ------ ----------- -----------Non-current assets held for sale 1,582 - ------------------------ ------ ----------- -----------Total assets 37,866 29,729 ------------------------ ------ ----------- ----------- Current liabilities Trade and other payables (8,618) (6,048) Current tax liabilities (796) (521) Bank overdrafts and loans - (343) Other creditors (15,129) (9,165) ------------------------ ------ ----------- ----------- (24,543) (16,077) ------------------------ ------ ----------- -----------Net current assets 11,001 11,051 ------------------------ ------ ----------- -----------Non-current liabilities Trade and other payables (110) (111) Deferred tax liabilities (76) (134) ------------------------ ------ ----------- ----------- (186) (245) ------------------------ ------ ----------- -----------Total liabilities (24,729) (16,322) ------------------------ ------ ----------- -----------Net assets 13,137 13,407 ------------------------ ------ ----------- ----------- Equity Share capital 5 483 483 Share premium account 5 2,581 2,581 Hedging reserve 5 (28) 9 Translation reserve 5 (114) 157 Share option reserve 5 496 300 Retained earnings 5 9,545 9,702 ------------------------ ------ ----------- -----------Equity attributable to equity holders of the parent 12,963 13,232 ------------------------ ------ ----------- ----------- Minority equity interest 174 175 ------------------------ ------ ----------- -----------Total equity 13,137 13,407 ------------------------ ------ ----------- ----------- Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of Unaudited Results for the year ended 31st July 2006 Consolidated cash flow statement 2006 2005 Note £'000 £'000 ------------------------- ----------- --------- ---------Net cash from operating activities 6 154 5,937 ------------------------- ----------- --------- ---------Investing activities Interest received 534 468 Proceeds on disposal of property, plant and equipment 32 1 Investments - (69) Purchases of property, plant and equipment (208) (294) ------------------------- ----------- --------- --------- Net cash from investing activities 358 106 ------------------------- ----------- --------- ---------Financing activities Dividends paid (3,586) (1,602) Decrease in bank loans (343) (323) Proceeds on issue of shares - 1,317 ------------------------- ----------- --------- ---------Net cash used in financing activities (3,929) (608) ------------------------- ----------- --------- ---------Net (decrease)/increase in cash and cash equivalents (3,417) 5,435 Opening cash and cash equivalents 15,437 9,983 Effect of foreign exchange rate changes (89) 19 ------------------------- ----------- --------- --------- Closing cash and cash equivalents 11,931 15,437 ------------------------- ----------- --------- --------- Reconciliation of net cash flow to movement net funds 2006 2005 £'000 £'000 ------------------------- --------- --------- (Decrease)/increase in cash and cash equivalents in the year (3,417) 5,435 Cash outflow from movement in debt financing 343 323 Effect of foreign exchange rate changes (89) 4 ------------------------- --------- --------- Movement in net funds during the period (3,163) 5,762 Opening net funds 15,094 9,332 ------------------------- --------- ---------Closing net funds 11,931 15,094 ------------------------- --------- --------- Air Partner PLC ("the Group" or "the Company") Preliminary Announcement of Unaudited Results for the year ended 31st July 2006 Notes to the financial statements 1 Basis of preparation of financial statements The financial information presented in this preliminary announcement isunaudited and does not constitute statutory accounts as defined by Section 240of the Companies Act 1985 nor the Group's statutory accounts for the years ended31 July 2006 or 2005. The financial information for the year ended 31 July 2005 is derived from thestatutory accounts for that period as restated for the introduction ofInternational Financial Reporting Standards (IFRS). The statutory accounts forthe year ended 31 July 2005 were prepared under United Kingdom GenerallyAccepted Accounting Practice and, have been delivered to the Registrar ofCompanies. The auditors have reported on those accounts; their report wasunqualified and did not contain statements under section 237(2) or (3) of theCompanies Act 1985. The auditor has not yet reported under section 235 of the Companies Act 1985upon the statutory accounts for the year ended 31 July 2006. The statutoryaccounts will be finalised on the basis of the financial information presentedby the Directors in this preliminary announcement and will be delivered to theRegistrar of Companies following the Company's Annual General Meeting. The financial information contained within this Preliminary Announcement wasapproved by the Board on 11October 2006. The financial statements have been prepared in accordance with InternationalFinancial Reporting Standards ("IFRS"), including International AccountingStandards ("IAS") and , interpretations ("IFRIC") issued by the InternationalAccounting Standards Board ("IASB") for the first time. The disclosuresrequired by IFRS1 concerning the transition from UK GAAP to IFRS are given inthe notes of the annual report and financial statements. The last financialstatements prepared under UK GAAP were for the year ended 31 July 2005 and thedate of transition to IFRS was therefore 1 August 2004. 2 Segmental analysis Segmental information is presented in respect of the Group's geographical andbusiness markets. The primary format, geographical segments, is based on theGroup's management and internal reporting structure and is organised in fourareas: United Kingdom, Europe, United States of America and the Rest of theWorld. The following table provides analysis between each geographical market: 2006 United Europe United Rest of Consolidated Kingdom States of the World America £'000 £'000 £'000 £'000 £'000 ----------------- -------- -------- -------- -------- ---------- Revenue 66,427 48,147 21,734 4,060 140,368 Segment operating profit 2,197 608 1,365 431 4,601 ---------------- -------- -------- -------- -------- ----------Finance income - - - - 534 Finance costs - - - - (6) ---------------- -------- -------- -------- -------- ----------Profit before tax - - - - 5,129 Taxation - - - - (1,537) ---------------- -------- -------- -------- -------- ----------Profit for the period - - - - 3,592 Segment assets 13,813 17,301 3,271 3,481 37,866 Segment liabilities 6,294 16,344 1,267 824 24,729 Depreciation 73 59 6 307 445 Capital expenditure 102 45 2 59 208 2005 United Europe United Rest of Consolidated Kingdom States of the World America £'000 £'000 £'000 £'000 £'000 ---------------- -------- -------- -------- -------- ----------Revenue 61,213 36,184 22,127 2,997 122,521 Segment operating profit 2,246 473 1,194 62 3,975 ---------------- -------- -------- -------- -------- ----------Finance income - - - - 468 Finance costs - - - - (29) ---------------- -------- -------- -------- -------- ----------Profit before tax - - - - 4,414 Taxation - - - - (1,427) ---------------- -------- -------- -------- -------- ----------Profit for the period - - - - 2,987 Segment assets 13,608 10,472 2,312 3,337 29,729 Segment liabilities 4,515 9,593 1,075 1,139 16,322 Depreciation 104 67 11 314 496 Capital expenditure 225 56 6 7 294 Business segment - revenue 2006 2005 £'000 £'000 Air charter 138,724 120,718 Aircraft leasing 534 523 Travel agency 1,108 1,266 Insurance 2 14 --------------------------------- --------- ---------- 140,368 122,521 --------------------------------- --------- ---------- Business segment - operating profit Air charter 4,336 3,972 Aircraft leasing 232 (34) Travel agency 30 30 Insurance 3 7 --------------------------------- --------- ---------- 4,601 3,975 --------------------------------- --------- ---------- Finance income 534 468 Finance costs (6) (29) Profit before tax 5,129 4,414 --------------------------------- --------- ---------- Taxation (1,537) (1,427) --------------------------------- --------- ---------- Profit for the period 3,592 2,987 --------------------------------- --------- ---------- 3 Dividends 2006 2005 £'000 £'000 ---------------------------------- ---------- ---------- Amounts recognised as distributions to equity holders in the period Final dividend for year ended 31 July 2005 of 11p (2004: 10p) per share 1,063 931 Special dividend for year ended 31 July 2005 of 20p (2004: N/A) per share 1,933 - Interim dividend for year ended 31 July 2006 of 6.1p (2005: 5.5p) per share 590 547 ---------------------------------- ---------- ---------- 3,586 1,478 ---------------------------------- ---------- ---------- Proposed final dividend for the year ended 31 July 2006 of 12.1p (2005: 31p including special) per share 1,170 2,996 ---------------------------------- ---------- ---------- The proposed final dividend is subject to approval by shareholders at the annualgeneral meeting and has not been included as a liability in these financialstatements. 4 Earnings per share The calculation of the basic and diluted earnings per share is based on thefollowing data: 2006 2005 £'000 £'000 ------------------------------------ -------- --------Earnings Earnings for the purposes of basic earnings per share being net profit attributable to equity holders of the parent 3,429 2,904 Earnings for the purposes of diluted earnings per share 3,429 2,904 ------------------------------------ -------- --------Number of shares Weighted average number of ordinary shares for the purposes of basic earnings per share 9,665,518 9,495,237 Effect of dilutive potential ordinary shares: Share options 314,851 250,285 ---------------------------------- --------- ---------Weighted average number of ordinary shares for the purposes of diluted earnings per share 9,980,369 9,745,522 5 Statement of changes in equity ---------- ------- -------- ------- -------- --------- -------- ------- Share Share Share premium option Hedging Translation Retained Total capital account reserve reserve reserve earnings equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 ---------- ------- -------- ------- -------- --------- -------- -------Opening equity as at 1 August 2004 483 2,581 - - - 8,276 11,340 Exchange differences on translation of foreign operations - - - - 157 - 157 ---------- ------- -------- ------- -------- --------- -------- -------Net income recognised directly in equity - - - - 157 - 157 Net movement in fair value of derivatives - - - 9 - - 9 Share option movement for period - - 300 - - - 300 Profit for the period - - - - - 2,904 2,904 ---------- ------- -------- ------- -------- --------- -------- -------Total recognised income and expense for the period - - 300 9 - 2,904 3,213 Dividends - - - - - (1,478) (1,478) ---------- ------- -------- ------- -------- --------- -------- -------Closing equity as at 31 July 2005 483 2,581 300 9 157 9,702 13,232 ---------- ------- -------- ------- -------- --------- -------- -------Opening equity as at 1 August 2005 483 2,581 300 9 157 9,702 13,232 Exchange differences on translation of foreign operations - - - - (271) - (271) ---------- ------- -------- ------- -------- --------- -------- -------Net expense recognised directly in equity - - - - (271) - (271) Net movement in fair value of derivatives - - - (37) - - (37) Share option movement for period - - 196 - - - 196 Profit for the period - - - - - 3,429 3,429 ---------- ------- -------- ------- -------- --------- -------- -------Total recognised income and expense for the period - - 196 (37) - 3,429 3,588 Dividends - - - - - (3,586) (3,586) ---------- ------- -------- ------- -------- --------- -------- -------Closing equity as at 31 July 2006 483 2,581 496 (28) (114) 9,545 12,963 ---------- ------- -------- ------- -------- --------- -------- ------- 6 Net cash from operating activities 2006 2005 £'000 £'000 ------------------------------ ------------- ----------Operating profit for the period 4,601 3,975 Adjustments for: Depreciation 445 496 Exchange differences - 255 Loss on disposal of property, plant and equipment 5 2 Hedging (gains)/losses recognised through IAS 39 (38) 9 Share option cost for period 196 300 ------------------------------ ------------- ----------Operating cash flows before movements in working capital 5,209 5,037 (Increase)/decrease in receivables (11,922) 2,102 Increase in payables 8,279 477 ------------------------------ ------------- ----------Cash generated from operations 1,566 7,616 Income taxes paid (1,406) (1,650) Interest paid (6) (29) ------------------------------ ------------- ----------Net cash from operating activities 154 5,937 ------------------------------ ------------- ---------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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