TIDMOSG
RNS Number : 2796P
Opsec Security Group PLC
04 June 2015
4(th) June 2015
OPSEC SECURITY GROUP PLC
("OpSec", "the Company" or "the Group")
preliminary Announcement of Results for the Year Ended 31(st)
March 2015
OpSec Security Group plc, the supplier of anti-counterfeiting
technologies, services and programmes announces its results for the
year ended 31(st) March 2015.
Highlights
2015 2014
Revenue GBP61.3m GBP55.5m
Operating Profit/(Loss) GBP1.0m GBP(2.2)m
Adjusted Operating Profit* GBP3.7m GBP2.3m
Loss Per Share (0.2)p (2.9)p
Adjusted Basic Earnings Per Share* 2.6p 2.9p
* Adjusted for the charges for intangible amortisation,
exceptional charges and share based payments (notes 2b and 8)
-- Significant Board and senior management changes;
-- Group revenue increased by 10% to GBP61.3 million;
-- Group adjusted operating profit increased by 62% to GBP3.7 million;
-- Cash inflow from operating activities of GBP3.8 million (2014: GBP1.6 million);
-- Closing cash balance of GBP6.7 million (2014: GBP2.6 million).
Richard Fuller, Chairman, said:
"We are starting the current financial year with a healthy order
book but also with the knowledge that two of our current customer
programmes are coming to an end and that the re-stocking at one of
our major transaction card customers will not repeat in the current
financial year. The rationalisation of the Group's production
facilities scheduled to be completed in the first half of the new
financial year should be a significant benefit to the Group's
profitability."
For further information, please contact:
OpSec Security Group plc
Mike Angus, Finance Director (mangus@opsecsecurity.com) +1 720 394 2803
Shore Capital 020 7408 4090
Stephane Auton/Patrick Castle
4(th) June 2015
OPSEC SECURITY GROUP PLC
("OpSec", "the Company" or "the Group")
preliminary Announcement of Results for the Year Ended 31(st)
March 2015
Chairman's Statement
Introduction
The year to 31(st) March 2015 saw a strong increase in Group
Revenue and in Group Operating Profit. Revenue was particularly
strong in our Transaction Card and Government Protection
markets.
Exceptional Items
Two exceptional items impacted the year. The acquisition of
JDSUH with its facility in Robbinsville New Jersey required that
the Group's manufacturing facilities be rationalised. Certain costs
associated with that rationalisation are included in these results.
The Group also incurred costs relating to the restructuring of the
Board and the senior management team.
Capital Restructuring
As previously reported, in April 2014 the Company completed a
Placing and Open Offer which raised approximately GBP7.0 million
before expenses. The funds were raised to reduce the Company's
borrowings, to pay the accrued dividend owing in respect of the
Preferred Shares, to fund the rationalisation of the Group's
manufacturing facilities, to fund certain product development and
growth expansion initiatives and to provide further working capital
for the Group.
Board and Management Changes
A number of changes to the Board and management team were made
during the year. On 21(st) May 2014 Hazem Ben-Gacem re-joined the
OpSec Board of Directors. At the same time Glenn Luk stood down as
a non-executive director of the Company.
Mark Turnage stepped down from the post of Chief Executive on
8(th) July 2014 and continued to serve as Vice Chairman until 9(th)
February 2015 when he left the Board. Richard S. Cremona became
Chief Executive of the Company on 8(th) July 2014. There have also
been significant changes to the senior management team of the
Company during the year.
On 30(th) September 2014 David Mahony stepped down from the
Board of the Company and I succeeded him as Chairman.
Finally, David Erlong replaced Anand Radhakrishnan as a
non-executive director of the Company on 7(th) April 2015.
I would like to take this opportunity to thank all of those
people who have left the Company for their contributions over many
years. I would also like to welcome all the people who have joined
the Company and wish them great success in their time with us.
Outlook
We are starting the current financial year with a healthy order
book but also with the knowledge that two of our current customer
programmes are coming to an end and that the re-stocking at one of
our major transaction card customers will not repeat in the current
financial year. The rationalisation of the Group's production
facilities scheduled to be completed in the first half of the new
financial year should be a significant benefit to the Group's
profitability.
R Fuller
Chairman
4(th) June 2015
BUSINESS REVIEW
Business Model and Strategy
OpSec is an international company whose mission is to provide
solutions to its customers to combat counterfeiting and the related
problems of diversion, grey marketing, online brand abuse and
fraud. OpSec's customers include numerous governments and many of
the world's largest corporations.
OpSec supplies technologies and solutions into three core
markets: Government Protection, Brand Protection and Transaction
Cards. In addition, OpSec owns 50% of 3dcd LLC, a joint venture
which licenses technologies for the protection of optical disks
(CDs and DVDs).
OpSec's customers are served from its facilities in the USA, the
UK, Germany, Hong Kong, the Dominican Republic and via a network of
over 40 agents worldwide.
OpSec's strategy is to provide world-class authentication
technologies and solutions into its core markets, leveraging its
unique technology portfolio, its expertise, and its global
distribution network. OpSec intends to invest in people,
technology, manufacturing and distribution to continue its growth
and broaden its product offerings. The Group will also continue to
make acquisitions that fit its core market strategy or enhance its
technology portfolio.
Group Revenue
Prior to the changes made to the management team, OpSec's sales
activities were organised by market-facing groups, each addressing
its individual market with dedicated management, sales, sales
support, and technology development teams. The market facing groups
were supported by the operations and digital operations groups
which provide them with products and services from the Group's
facilities in Europe, the USA and Asia.
In order to maximise sales opportunities and leverage more
efficiently our resources the Company has moved to a single "One
OpSec" organisational structure based upon product lines and
geographies. The implementation of this structure will provide
end-to-end delivery of our product lines and services whilst
enhancing accountability and performance in the markets we serve.
The Company intends to increase its marketing expenditure in the
current year to increase market awareness and promote the Company's
capabilities.
The year to 31(st) March 2015 saw Group revenue increase by 10%
to GBP61.3 million (2014: GBP55.5 million).
Government Protection
Revenue in the Government Protection market sector increased by
11% to GBP13.8 million (2014: GBP12.4 million).
The year saw strong growth due to contracts secured in the prior
year for ID products and the excise stamp market together with
strong demand from our Asian currency customer. This was partially
offset by reduced orders from an Eastern European government.
Brand Protection
This sector recorded a decrease in revenue of 4% for the
financial year to GBP31.3 million (2014: GBP32.5 million).
The decrease in revenue was primarily due to a price reduction
at a major Asian tobacco customer and lower volumes in the football
related apparel business where the prior year benefited from the
impact of the World Cup. The Company was also notified during the
year that two of its current brand protection programmes will be
discontinued in the current financial year. Against this there have
been record levels of new business won in the year which will
benefit the current financial year.
Transaction Cards
Revenue in the transaction card market sector for the year was
52% higher at GBP16.3 million (2014: GBP10.7 million).
The increase in revenue from the prior year reflected strong
demand in North America as the market transitions to "chip and pin"
cards together with re-stocking at a major customer following a
supply chain disruption in the prior period.
Geographical Business Units
The Group has two operating segments, each of which is a
reportable segment; these are the Group's geographic business
units.
American Operations
Revenue in our American operations was $70.4 million, an
increase of 23% against the prior year total of $57.2 million. The
American results were impacted positively by new customer wins in
the Government Protection group and strong revenue from the
Transaction Card market.
Gross margin fell during the year from 35.0% to 33.6% due to
product mix and some duplicative costs associated with the
rationalisation of the Group's manufacturing facilities.
Overall adjusted operating profit increased by 142% from $2.9
million to $6.9 million.
EMEA Operations
Revenue in the EMEA operations increased from GBP21.4 million to
GBP21.9 million, principally as a result of higher order levels
from an established Asian currency customer offset by lower sales
to a European government customer and certain Brand Protection
customers.
The gross margin generated by the EMEA operations fell from
38.6% to 38.1% as a result of a price reduction at a major customer
and additional labour costs associated with the rationalisation of
the Group's manufacturing facilities.
Overheads increased as a result of higher sales commissions and
adjusted operating profit decreased from GBP1.8 million to GBP1.2
million.
3dcd Joint Venture
The contribution from our joint venture during the year was
GBP0.3 million (2014: GBP0.5 million).
Corporate
There was a credit for share based payments in the current year
of GBP0.5 million (2014: charge of GBP0.2 million) resulting from
the surrender of previous share awards in connection with a new
executive share option scheme. Other corporate costs increased over
the prior year to GBP2.2 million (2014: GBP1.7 million) due to the
impact of the management restructuring and provision for management
bonuses.
Exceptional costs
There were exceptional costs during the year of GBP1.6 million
(2014: GBP2.0 million). The acquisition of JDSUH with its facility
in Robbinsville New Jersey required that the Group's manufacturing
facilities be rationalised. Certain costs associated with that
rationalisation are included in these results. The Group also
incurred costs relating to the restructuring of the Board and the
senior management team.
Finance expense
On 31(st) March 2014, the Company announced that it had
conditionally placed an aggregate of 21,212,121 New Ordinary Shares
with Orca Holdings Ltd ("Orca") and Herald Investment Trust Ltd
("Herald") subject to the clawback in respect of valid acceptances
received pursuant to an Open Offer. Accordingly, following the
result of the Open Offer, under the Placing, Orca subscribed for
13,717,951 New Ordinary Shares and Herald subscribed for 6,858,975
New Ordinary Shares. The 21,212,121 New Ordinary Shares issued
pursuant to the Placing and Open Offer were admitted to trading on
AIM on 22(nd) April 2014.
The Group's financing is currently provided by Investcorp
Technology Partners ("Investcorp") and JP Morgan Chase Bank. At
31(st) March 2015 Investcorp held 48,512,914 ordinary shares and
20,000,000 7.5% redeemable convertible preferred ordinary shares of
35 pence per share.
At 31(st) March 2015 the Group had an outstanding Term Loan of
$8.3 million and a revolving credit facility of $2.0 million.
The net finance cost for the year was GBP0.9 million (2014:
GBP1.0 million). This reflects the impact of exchange rate
movements and repayments made during the year.
Income Tax
The tax charge in the income statement of GBP0.4 million (2014:
credit of GBP1.0 million) arises predominantly from a reduction in
deferred tax assets related to trading losses carried forward.
Earnings per share
Basic adjusted earnings per share decreased to 2.6p (2014:
2.9p). Adjusted fully diluted earnings per share decreased to 2.6p
(2014: 2.9p).
Cash flow
Net cash inflow from operating activities was GBP2.4 million
(2014: GBP1.3 million), the increase resulting from higher
operating profit and better working capital movements in the
period. In addition, the Group raised GBP6.8 million from the
Placing and Open offer, repaid borrowings of GBP2.4 million (2014:
GBP2.2 million) and received dividends from its joint venture
amounting to GBP0.3 million (2014: GBP0.3 million).
The principal cash outflows during the year were property, plant
and equipment additions of GBP2.3 million (2014: GBP2.2 million),
earn-out payments of GBP0.9 million (2014: GBP0.4 million) and
interest and bank fee payments of GBP1.3 million (2014: GBP0.2
million).
The major capital expenditure planned for the year ending 31(st)
March 2016 is related to the continued rationalisation of our
manufacturing facilities and investment in the Company's digital
technologies.
Overall the net cash inflow for the year was GBP3.9 million
(2014: outflow of GBP3.2 million). After the favourable impact of
exchange rate fluctuations on cash of GBP0.3 million, (2014:
negative GBP0.2 million), net cash and cash equivalents increased
to GBP6.7 million (2014: GBP2.6 million).
RS Cremona
Chief Executive
4(th) June 2015
OPSEC SECURITY GROUP PLC
Consolidated Income Statement
Year ended Year ended
31-Mar-15 31-Mar-14
GBP'000 GBP'000
Revenue 61,296 55,526
Cost of sales (38,292) (34,854)
Gross profit 23,004 20,672
Distribution and selling
costs (9,090) (8,825)
-------------------------------- ----------- -----------
Administrative expenses (9,941) (10,251)
(1,554) (2,035)
(1,711) (2,227)
----------- -----------
Exceptional administrative
expenses
----------- -----------
Intangible amortisation
Total administrative
expenses (13,206) (14,513)
708 (2,666)
Share of profit of jointly
controlled entities 306 479
----------- -----------
Operating profit/(loss) 1,014 (2,187)
Finance income 23 (84)
Finance expense (916) (947)
----------- -----------
Net finance costs (893) (1,031)
----------- -----------
Profit/(loss) before
income tax 121 (3,218)
Income tax (357) 964
Loss for the year attributable
to equity holders of
the parent (236) (2,254)
=========== ===========
Basic loss per share
(p) (0.2) (2.9)
=========== ===========
Diluted loss per share
(p) (0.2) (2.9)
=========== ===========
Consolidated statement of comprehensive income
Loss for the financial
year (236) (2,254)
-------- ----------
Other comprehensive
income/(expense)
Items that are or may
be reclassified subsequently
to profit and loss
Foreign exchange translation
differences 3,084 (1,995)
Effective portion of
changes in fair value
of cash flow hedges - 30
Other comprehensive
income/(expense) for
the financial year,
net of income tax 3,084 (1,965)
Total comprehensive
income/(expense) for
the financial year attributable
to equity holders of
the parent 2,848 (4,219)
======== ==========
OPSEC SECURITY GROUP PLC
Consolidated Statement of Changes in Equity
For the year ended 31(st) March 2015
Share Share Translation Hedging Retained Total
Capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1(st)
April 2014 4,000 38,487 2,082 (12) (9,996) 34,561
--------- -------- ------------ -------- --------- --------
Total comprehensive
income for the
year
Loss for the year - - - - (236) (236)
Other comprehensive
income - - 3,084 - - 3,084
Total comprehensive income/(expense) for the year - - 3,084 - (236) 2,848
--------- -------- ------------ -------- --------- --------
Transactions with
owners recorded
directly in equity
Share based payments - - - - (545) (545)
Issuance of shares 1,061 5,740 - - - 6,801
--------- -------- ------------ -------- --------- --------
Total transactions
with owners 1,061 5,740 - - (545) 6,256
At 31(st) March
2015 5,061 44,227 5,166 (12) (10,777) 43,665
========= ======== ============ ======== ========= ========
For the year ended 31(st) March 2014
Share Share Translation Hedging Retained Total
Capital premium reserve reserve earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1(st)
April 2013 4,000 38,487 4,077 (42) (7,976) 38,546
---------- --------- ------------ --------- ---------- ----------
Total comprehensive
income for the
year
Loss for the year - - - - (2,254) (2,254)
Other comprehensive
income/(expense) - - (1,995) 30 - (1,965)
Total comprehensive income/(expense) for the year - - (1,995) 30 (2,254) (4,219)
---------- --------- ------------ --------- ---------- ----------
Transactions with
owners recorded
directly in equity
Share based payments - - - - 234 234
Issuance of shares - - - - - -
---------- --------- ------------ --------- ---------- ----------
Total transactions
with owners - - - - 234 234
At 31(st) March
2014 4,000 38,487 2,082 (12) (9,996) 34,561
========== ========= ============ ========= ========== ==========
OPSEC SECURITY GROUP PLC
Consolidated Balance Sheet
31-Mar-15 31-Mar-14
GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 8,457 7,787
Intangible assets 36,797 36,465
Investment in jointly
controlled entity 102 38
Deferred tax assets 4,822 4,741
---------- ----------
Total non-current assets 50,178 49,031
---------- ----------
Current assets
Inventory 6,344 5,126
Trade and other receivables 14,560 11,564
Assets held for sale - 300
Cash and cash equivalents 6,719 2,575
Total current assets 27,623 19,565
---------- ----------
Total assets 77,801 68,596
---------- ----------
LIABILITIES
Current liabilities
Interest-bearing loans
and borrowings (1,309) (2,376)
Deferred government grants (20) (20)
Provisions (2,072) (2,383)
Income tax payable (46) (4)
Trade and other payables (17,262) (14,888)
---------- ----------
Total current liabilities (20,709) (19,671)
---------- ----------
Non-current liabilities
Interest-bearing loans
and borrowings (11,259) (11,960)
Derivative financial
instruments (12) (12)
Deferred government grants (393) (309)
Provisions (785) (1,025)
Deferred tax liabilities (99) (332)
Other payables (879) (726)
---------- ----------
Total non-current liabilities (13,427) (14,364)
---------- ----------
Total liabilities (34,136) (34,035)
---------- ----------
Net assets 43,665 34,561
========== ==========
EQUITY
Capital and reserves
Issued capital 5,061 4,000
Share premium account 44,227 38,487
Hedging reserve (12) (12)
Translation reserve 5,166 2,082
Retained earnings (10,777) (9,996)
---------- ----------
Total equity attributable
to equity holders of
the parent 43,665 34,561
========== ==========
OPSEC SECURITY GROUP PLC
Consolidated Statement of Cash Flows
Year ended Year ended
31-Mar-15 31-Mar-14
GBP'000 GBP'000
Cash flows from operating
activities
Loss for the year (236) (2,254)
Depreciation 2,118 2,121
Amortisation of intangible
assets 1,711 2,227
(Profit)/Loss on sale of property,
plant and equipment 25 10
Loss on reclassification of
assets held for sale - 431
Release of government grants (43) (29)
Equity settled share based
(income)/expense (545) 234
Share of profit of jointly
controlled entity (306) (479)
Finance income (23) 84
Finance expense 916 947
Income tax 357 (964)
Movement in inventory (524) (754)
Movement in trade and other
receivables (2,162) (2,443)
Movement in trade and other
payables 3,089 2,045
Movement in provisions (551) 374
----------- -----------
Cash from operating activities 3,826 1,550
Interest paid (1,305) (239)
Income tax (paid)/received (73) 21
----------- -----------
Net cash inflow from operating
activities 2,448 1,332
----------- -----------
Cash flows from investing
activities
Acquisition of subsidiary
undertaking (net of cash acquired) (931) (400)
Acquisition of property, plant
and equipment (2,332) (2,154)
Dividends received from jointly
controlled entity 257 308
Interest received/(paid) 23 (84)
----------- -----------
Net cash outflow from investing
activities (2,983) (2,330)
----------- -----------
Cash flows from financing
activities
Payment of finance lease liabilities - (155)
Repayment of borrowings (2,386) (2,069)
Proceeds from issuance of 6,801 -
shares (net of costs)
Net cash inflow/(outflow)from
financing activities 4,415 (2,224)
Net increase/(decrease) in
cash and cash equivalents 3,880 (3,222)
Cash and cash equivalents
at the start of the year 2,575 5,974
Effect of exchange rate fluctuations
on cash 264 (177)
Cash and cash equivalents
at the end of the year 6,719 2,575
=========== ===========
OPSEC SECURITY GROUP PLC
Notes to the Preliminary Announcement
For the year ended 31(st) March 2015
1) Basis of preparation
The financial information set out above has been prepared in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS) as adopted by
the EU (Adopted IFRSs).
The financial information set out above does not constitute the
Company's statutory accounts for the years ended 31(st) March 2015
or 2014. The financial information for 2014 is derived from the
statutory accounts for 2014 which have been delivered to the
registrar of companies. The auditor has reported on the 2014
accounts; their report was (i) unqualified, (ii) did not include
references to any matters to which the auditor drew attention by
way of emphasis without qualifying their report and (iii) did not
contain statements under section 498 (2) or (3) of the Companies
Act 2006. The statutory accounts for 2015 will be finalised on the
basis of the financial information presented by the Directors in
this preliminary announcement and will be delivered to the
registrar of companies in due course.
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Business Review. The financial position of the
group, its cash flows, liquidity position and borrowing facilities
are also described in the Business Review.
The Group meets its day to day working capital requirements
through its cash balances and facilities with JP Morgan Chase
Bank.
After making enquiries, the Directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future.
Accordingly they continue to adopt the going concern basis in
preparing the annual report and accounts which will be finalised on
the basis of the financial information presented in this
preliminary announcement.
New standards
The accounting policies used in the preparation of the financial
information have been applied consistently throughout the Group and
are unchanged from previous years.
The following Adopted IFRSs have been applied for the first time
for the year ended 31(st) March 2015:
-- IFRS 10 'Consolidated Financial Statements'
-- IFRS 11 'Joint Arrangements'
-- IFRS 12 'Disclosure of Interests in Other Entities'
-- IAS 27 'Separate Financial Statements'
-- IAS 28 'Investments in Associates and Joint Ventures'
As a result of the adoption of this suite of standards, the
Group has reassessed i) whether it has control over its investees;
and ii) the status of its interests in joint arrangements. No
modifications of previous conclusions about either control
regarding the Group's investees or about joint arrangements were
required. The application of these standards has therefore not had
an impact on the Group's result for the year or its equity.
Various other amendments and interpretations are effective for
the first time, none of which have had any impact on the Group
financial statements.
The following Adopted IFRSs have been issued and endorsed by the
EU but have not been applied by the Group in these financial
statements as they are not yet effective. Their adoption is not
expected to have a material effect on the financial statements:
-- Annual Improvements to IFRSs 2010-2012 Cycle
-- Annual Improvements to IFRSs 2011-2013 Cycle
-- Amendments to IAS 19 - Defined benefit plans: employee contributions
OPSEC SECURITY GROUP PLC
Notes to the Preliminary Announcement
For the year ended 31(st) March 2015
2) Segment Information
The Group has two operating segments, each of which is a
reportable segment; these are the Group's geographic business
units. Information regarding the results of each reporting segment
is presented below.
2015 2014
GBP'000 GBP'000
a) Segment revenue
American operations 43,968 35,806
EMEA operations 21,946 21,405
Inter-segment revenue (4,618) (1,685)
-------- --------
61,296 55,526
======== ========
Inter-segment revenue is determined
on an arm's length basis.
b) Segment result and reconciliation
to profit/(loss) before income tax
American Operations 4,383 1,767
EMEA Operations 1,201 1,811
Segment result 5,584 3,578
Jointly controlled entity 306 479
Corporate costs (2,156) (1,748)
-------- --------
Adjusted operating profit 3,734 2,309
Exceptional administrative
expenses (1,554) (2,035)
Intangible amortisation (1,711) (2,227)
Share based payments 545 (234)
-------- --------
Operating profit/(loss) 1,014 (2,187)
Financial income 23 (84)
Financial expense (916) (947)
-------- --------
Profit/(Loss) before income
tax 121 (3,218)
======== ========
OPSEC SECURITY GROUP PLC
Notes to the Preliminary Announcement
For the year ended 31(st) March 2015
3) Total Operating Expenses
2015 2014
GBP'000 GBP'000
Distribution and Selling Costs
Distribution and selling costs 9,090 8,825
--------- ---------
Administrative Expenses
Technical support 838 867
Research and development costs 3,746 3,046
Administrative costs 5,357 6,338
Exceptional administrative
expenses (see below) 1,554 2,035
Intangible amortisation 1,711 2,227
13,206 14,513
--------- ---------
Total operating expenses 22,296 23,338
========= =========
The exceptional costs are detailed below.
2015 2014
GBP'000 GBP'000
Acquisition and other corporate
restructuring costs - 117
Reorganisation costs 1,554 1,708
Provision for bad debt and
inventory for South American
customer - 210
1,554 2,035
========= =========
4) Share of Profit of Jointly Controlled Entity
The share of profit of jointly controlled entity represents the
Group's share of the results of 3dcd for the year ended 31(st)
March 2015.
5) Finance Income
2015 2014
GBP'000 GBP'000
Interest income 2 1
Exchange gains/(losses) on
foreign currency deposits 21 (85)
--------- ---------
23 (84)
========= =========
OPSEC SECURITY GROUP PLC
Notes to the Preliminary Announcement
For the year ended 31(st) March 2015
6) Finance Expenses
2015 2014
GBP'000 GBP'000
Interest expense on financial
liabilities measured at amortised
cost (797) (817)
Amortisation of debt advisor
fees (119) (130)
(916) (947)
========= =========
7) Income Tax
2015 2014
GBP'000 GBP'000
Corporate tax expense
Current year (114) (137)
Prior year (95) -
Deferred tax expense
Current year (148) 1,101
Prior year - -
(357) 964
========= =========
No corporation tax is payable in the current year by any of the
Group's UK based companies due to existing trading and non-trading
losses brought forward. The current period corporation tax is in
respect of profits arising in the Group's American operations,
comprising state taxes and federal taxes of GBP88,000 and profits
arising in the OpSec Delta Hong Kong business.
A prior year adjustment of GBP53,000 has arisen in OpSec
Security Group plc due to disclaiming group relief from OpSec
Security Limited in the period ended 31(st) March 2014 to instead
claim RDEC tax relief from OpSec Security Limited. A prior year
adjustment has arisen in OpSec Security Limited of GBP42,000 as a
result of the reversal of a tax debtor in relation to the hive up
of OpSec Delta Limited.
The deferred tax charge arising in the period primarily relates
to a reduction in net operating losses carried forward in respect
of the American business operations.
At 31(st) March 2015 the Group had recognised a net deferred tax
asset of GBP4,723,000 (2014: GBP4,409,000) arising principally from
losses available in the UK and America which can be utilised to
offset future profits of the same trades and other short term
timing differences.
At 31(st) March 2015 the Group also had an additional
unrecognised deferred tax asset of GBP3,764,000 (2014:
GBP3,581,000) in respect of unutilised tax losses and tax
depreciation. This asset has not been recognised due to uncertainty
relating to the utilisation of those tax assets. The increase in
the asset not recognised arises from additional losses in the UK
and the impact of foreign exchange movements on deferred tax
balances in the Group's American operations.
OPSEC SECURITY GROUP PLC
Notes to the Preliminary Announcement
For the year ended 31(st) March 2015
8) Earnings per Share
The calculations of earnings per share are based upon the
following profits and numbers of shares.
2015 2014
GBP'000 GBP'000
Earnings
Loss for the financial year (236) (2,254)
Exceptional administrative
costs 1,554 2,035
Intangible amortisation 1,711 2,227
Equity settled share based
payments (545) 234
----------- -----------
Adjusted earnings for the financial
year 2,484 2,242
=========== ===========
Weighted average number of No. of No. of
ordinary shares shares shares
For basic EPS 97,419,153 77,485,571
Effect of share options and
other awards - 55,000
----------- -----------
For diluted EPS 97,419,153 77,540,571
=========== ===========
9) A copy of the preliminary statement is available from the
Company Secretary, 40 Phoenix Road, Crowther, Washington, Tyne
& Wear, NE38 0AD.
10) The preliminary announcement was approved by the Board of
Directors for release on 4(th) June 2015.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSUFLLFISEDM
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