The Property Franchise Group (MCO)

 

LSE:MCO: Interim Results

The Property Franchise Group

09 Sep 2015 07:00:12

MartinCo PLC

RNS Number : 4674Y
MartinCo PLC
09 September 2015
 



MARTINCO PLC

 

("Martin & Co", the "Company" or the "Group")

 

Interim Results for the six months ended 30 June 2015

 

Record revenue up 48% with successful integration of the "Xperience" brands and continued development of estate agency and lettings

 

MartinCo Plc, one of the UK's largest property franchises, today announces its interim results for the period ended 30 June 2015.

 

FINANCIAL HIGHLIGHTS

 

§ Revenue increased by 48% to £3.4m (H1 2014: £2.3m)

§ Management Service Fees (royalties) increased by 61% to £2.9m (H1 2014: £1.8m)

§ Gross profit increased by 53% to £3.2m (H1 2014: £2.1m)

§ Operating profit increased by 66% to £1.3m (H1 2014: £0.8m) before exceptional  reorganisation costs of £0.1m following the acquisition of "Xperience"

§ Operating margin of 38% (H1 2014: 34%) before exceptional items

§ Strong balance sheet with a cash position of £3.8m at 30 June 2015 (H1 2014: £5.5m)

§ Earnings per share increased by 45% to 4.2p per share (H1 2014: 2.9p)

§ Interim dividend increased by 38% to 1.8p per share (H1 2014: 1.3p)

 

OPERATIONAL HIGHLIGHTS

 

§ 284 trading offices (H1 2014: 193), 239 franchisees, no company owned offices

§ 253 offices offering Estate Agency service (H1 2014: 145)

§ 44,000 tenanted managed properties (H1 2014: 31,000)

§ 7 new franchisees recruited (H1 2014: 12)

§ 5 new offices opened (H1 2014: 3), further 7 offices preparing to open (H1 2014: 3)

§ 6 portfolio acquisitions by franchisees, adding 519 tenanted managed properties

 

Ian Wilson, CEO commented:

 

"Our strategy of developing "The Property Franchise Group" by acquiring other property franchisors has delivered a very good set of numbers in the first half-year after our acquisition of "Xperience". We have seen a strong increase in Group revenue and an even stronger increase in Group operating profits.

 

"We have substantially completed the integration of the "Xperience" divisional functions into our Head Office in Bournemouth, and we believe that there is scope for further operational gearing if the right target presented itself. We have cash on the balance sheet, unused debt facility and evidence that we can execute and consolidate the acquisition of another franchisor successfully.

 

"We will be increasing our focus in the second half-year on franchise sales activity, as we believe that each of our five brands is capable of further development through a mix of franchisee recruitment, encouragement for existing franchisees to expand, and the conversion of competitors to a franchise model.

 

"The track record of our letting business is that it has traditionally performed more strongly in the second half of the year and this trading pattern is expected in our estate agency business for 2015.  The slower start to estate agency transactions in 2015 compared to 2014 appears to be reversing and the value of our transactions exchanged at £6.6m was 21% higher in June 2015 than it was in the previous year.

 

"We are pleased to announce an interim dividend of 1.8p representing a 38% year on year increase and it confirms our commitment to a progressive dividend policy."

 

-Ends-

For further information, please contact:

 

MartinCo Plc  

Ian Wilson, Chief Executive Officer

David Raggett, Chief Financial Officer

01202 292829

 

 

Panmure Gordon

Dominic Morley (Corporate Finance)

Charles Leigh-Pemberton (Corporate Broking)       

020 7886 2500

 

 

Bell Pottinger

David Rydell, Nick Hyett

 

020 3772 2500

 

 

Chief Executive's Review

 

I am delighted to report the Group achieved both record revenue and record profits for the period. We had anticipated a period of retrenchment following our acquisition of "Xperience" but the evidence is that the re-structuring work and associated costs have been addressed in H1 2015 and early trading into H2 is encouraging with the management focused on future growth.

 

Franchise sales

 

The Group added to its UK footprint with new office openings in Downend (Bristol) and Gloucester under our CJ Hole brand and in, Kingston-on-Thames, Chester and Plymouth under our Martin & Co brand. In addition, one office converted from the Parkers brand to CJ Hole, taking the total number of CJ Hole offices to 20. We anticipate opening a further two offices for CJ Hole in Worcester and Cirencester during H2 2015.

 

As at 30 June 2015, the Group had 284 offices all of which were franchised and operated by 239 franchisees.

 

Lettings

 

High tenant demand continues with 65,917 viewings in the period for the Martin & Co offices, up from 63,698 in H1 2014 and 62,086 in H1 2013.

 

Our survey of 304 landlord clients conducted following the announcement in the budget of changes to landlord tax allowances found that 90% intended to maintain or expand their portfolio.

 

The total tenanted managed portfolio across the Group remains stable at circa 44,000.

 

Estate Agency

 

The roll-out of estate agency services continued at Martin & Co which prior to 2012 had been positioned as a "lettings specialist" brand. At 30 June 2015 there were 164 Martin & Co offices offering estate agency (H1 2014: 145) and they listed 3,079 properties for sale during the period (H1 2014: 2,161).

 

Since Martin & Co launched a "no frills" online estate agency service in September 2014 there has been very limited take-up with less than 5% of listings and 1% of estate agency revenue generated from this source. Prospective vendors given a choice between a traditional, no-sale no-fee commission-based estate service, and an upfront fixed fee "no frills" online service appear to continue to prefer the traditional service.

 

Martin & Co offices increased the number of properties being listed for sale, against market trend. Listings at Martin & Co were 3,079 compared to 2,161 in H1 2014 and 1,060 in H1 2013. This compares to a slight dip in listings at the "Xperience" offices in H1 2015 with 4,730 compared to 5,465 in H1 2014. This reflects a market perception that estate agency activity has been slower more recently.

 

A new factor has been the length of time it takes for a sale to progress to completion. Historically it has taken three months but during H1 2015 the Group average was between four and five months. This may be the new market "norm" as a result of reduced capacity in conveyancing firms.

 

At period end the "pipeline" of sales agreed stood at £4.90m for "Xperience" (H1 2014: £4.65m) and £1.7m for Martin & Co (H1 2014: £0.82m).

 

Acquisition strategy

 

At the franchisee level there has been a steady stream of small scale portfolio additions with 6 completed in the period, adding 519 tenanted managed properties.

 

At the franchisor level we have continued to explore the possibility of adding another brand to the Group.

 

Outlook

 

The UK housing market is recovering, and the "buy-to-let" sector remains healthy, with all the drivers for further growth remaining in place.

 

Our Group is better positioned to capitalise on growing activity now that it offers a more balanced mix of lettings and estate agency services.

 

Appropriately, management spent considerable time during H1 consolidating the acquisition of Xperience. The value of this "add on" business materialised in H1 despite some restructuring costs. H2 trading is historically stronger and management is confident that the Group is well placed to deliver a strong performance for the year as a whole.

 

Ian Wilson, Chief Executive

 

 

Financial Review

 

Revenue

 

Revenue from continuing activities for the six months ended 30 June 2015 was £3.4m (H1 2014: £2.3m), an increase of £1.1m (48%) over the comparative period. This was all driven by strong growth in Management Service Fees (royalties) of £1.1m (61%) over the comparative period with Xperience brands contributing £0.9m and Martin & Co contributing £0.2m. The growth in MSF from Martin & Co was 10%.

 

Operating profit

 

Operating profit from continuing activities before exceptional costs increased by 66% to £1.3m for the six months ended 30 June 2015 (H1 2014: £0.8m) following the integration of the Xperience brands.

 

While revenue from continuing activities increased by £1.1m (48%) in the first 6 months of 2015, our administration costs increased by £0.6m (45%) in the same period generating a net increase in operating margin of £0.5m. This lifted the overall operating margin before exceptional items to 38% for the six months ended 30 June 2015 (H1 2014: 34%).

 

The main contributor to the increase in administration costs of £0.6m was the integration of the Xperience brands which added £0.3m to personnel costs and £0.1m to other administrative expenses. Furthermore, the amortisation of the acquired intangibles added a further £0.1m to administration costs.

 

The operating profit from continuing activities after exceptional reorganisation costs was £1.2m (H1 2014: £0.8m).

 

EBITDA

The Group's EBITDA from continuing activities was £1.3m (H1 2014: £0.8m), an increase of £0.5m (66%) over the comparative period.

 

Earnings per share

 

Earnings per share for the six months ended 30 June 2015 was 4.2p (H1 2014:  2.9p). The income attributable to owners was £0.9m (H1 2014: £0.6m).

 

Dividends

 

The Board intends to continue to pursue a progressive dividend policy providing an attractive yield to shareholders. The Group has increased the interim dividend by 38% over last year and intends to make an interim dividend payment of 1.8p per share on 30 September 2015 to shareholders on the register on 18 September 2015.

 

Cash flow

 

The net cash inflow from operating activities in the first six months of 2015 was £0.9m (H1 2014: £0.6m). Unlike in the first 6 months of FY14, the Group paid bank interest and corporation tax in the first 6 months of FY15, amounting to £0.2m in total. Thus, the underlying trend is continued strong growth in operating cash inflows.

 

On 30 January 2015 the Group sold the portfolio managed on its behalf by T G Fisheries Ltd, the franchisee operating Martin & Co Saltaire, to T G Fisheries Ltd for £255,998 and generated a resulting profit over its net book value of £1,152.

 

This sale together with the continued receipts of deferred consideration on owned offices disposed of in the year ended 31 December 2013 generated proceeds from the sale of intangible assets of £0.3m. As a result, the Group had net cash inflows from investing activities of £0.3m (H1 2014: nil).

 

In the first 6 months of 2015 the Group made bank loan repayments of £0.25m and paid a final dividend of £0.6m for the year ended 31 December 2014.

 

Overall cash increased in the first six months of 2015 by £0.4m (H1 2014: £0.6m).

 

Liquidity

 

The Group had cash balances of £3.8m at 30 June 2015 compared to £5.5m at 30 June 2014. The Group also had unutilised bank loan facilities of £2.75m at 30 June 2015.

 

Financial position

 

The Group is strongly cash generative which combined with its robust balance sheet, and unutilised bank loan facilities puts it in a strong position to fulfil the acquisition element of our strategic plan.

 

David Raggett, Chief Financial Officer

 

 

MARTINCO PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 




Unaudited


Unaudited


Audited




6 Months Ended


6 Months Ended


12 Months Ended




30.06.15

30.06.14


31.12.14


Notes


£


£


£

CONTINUING OPERATIONS








Revenue

6


3,353,937


2,268,978


5,176,174

Cost of sales



(177,839)


(191,609)


(354,145)









GROSS PROFIT



3,176,098


2,077,369


4,822,029

Administrative expenses



(1,895,291)


(1,306,661)


(2,789,131)












1,280,807


770,708


2,032,898

Exceptional items

7


(114,704)


--


(158,741)

OPERATING PROFIT



1,166,103


770,708


1,874,157

Finance income



29,271


25,517


51,140

Finance costs



(43,401)


--


(22,295)









PROFIT BEFORE INCOME TAX



1,151,973


796,225


1,903,002









Tax expense

8


(233,169)


(165,083)


(411,541)









PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD FROM CONTINUING OPERATIONS









918,804

631,142


1,491,461









DISCONTINUED OPERATIONS








Profit and total comprehensive income for the period from discontinued operations










--

4,405


18,565









PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO OWNERS









918,804

635,547


1,510,026









Earnings per share - continuing activities (pence)



4.2p


2.9p


6.9p

Earnings per share - discontinued activities (pence)



--


--


--









Total Earnings per share (pence)

9


4.2p


2.9p


6.9p









Diluted earnings per share - continuing activities (pence)



4.0p


2.8p


6.6p

Diluted earnings per share - discontinued activities (pence)



--


--


--









Diluted earnings per share (pence)

9


4.0p


2.8p


6.6p

 

MARTINCO PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2015

 





Unaudited


Unaudited


Audited





As at


As at


As at





30.06.15

30.06.14

31.12.14


Notes


£


£


£

ASSETS









NON-CURRENT ASSETS









Intangible assets


11


6,149,508


378,479


6,270,173

Property, plant and equipment




89,149


82,685


92,158

Deferred tax




--


89,960


--





6,238,657


551,124


6,362,331

CURRENT ASSETS









Trade and other receivables


12


977,824


626,655


965,319

Cash and cash equivalents




3,761,512


5,461,878


3,367,259





4,739,336


6,088,533


4,332,578

Assets of disposal group classified as held for sale


17


--


212,618


254,846














4,739,336


6,301,151


4,587,424

TOTAL ASSETS




10,977,993


6,852,275


10,949,755










EQUITY









SHAREHOLDERS' EQUITY









Share capital


13


220,000


220,000


220,000

Share premium




3,790,000


3,790,000


3,790,000

Other reserves


14


35,477


(83,621)


(61,406)

Retained earnings




2,652,957


1,739,674


2,328,153

TOTAL EQUITY




6,698,434


5,666,053


6,276,747










LIABILITIES









NON-CURRENT LIABILITIES









Borrowings


15


1,750,000


--


2,000,000

Deferred tax




675,669


--


791,136





2,425,669


--


2,791,136

CURRENT LIABILITIES









Borrowings


15


500,000




500,000

Trade and other payables


16


962,494


572,893


1,046,530

Tax payable




391,396


582,068


335,342





1,853,890


1,154,961


1,881,872

Liabilities of disposal group classified as held for sale


17


--


31,261


--





1,853,890


1,186,222


1,881,872

TOTAL LIABILITIES




4,279,559


1,186,222


4,673,008

TOTAL EQUITY AND LIABILITIES




10,977,993


6,852,275


10,949,755

 

MARTINCO PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 



Called up share capital

(note 13)

Retained earnings

Share premium

 

Other reserves

(note 14)


   Total equity





£

£

£

£


£

















Balance at 1 January 2014 (audited)


220,000

1,104,127

3,790,000

(138,926)


4,975,201

Profit and total comprehensive income


--

635,547

--

--


635,547









Deferred tax on share based payments


--

--

--

55,305


55,305









Balance at 30 June 2014 (unaudited)


220,000

1,739,674

3,790,000

(83,621)


5,666,053

Profit and total comprehensive income


--

874,479

--

--


874,479

Dividends paid (note 10)


--

(286,000)

--

--


(286,000)

Deferred tax on share based payments


--

--

--

22,215


22,215









Balance at 31 December 2014 (audited)


220,000

2,328,153

3,790,000

(61,406)


6,276,747

Profit and total comprehensive income


--

918,804

--

--


918,804









Dividends paid (note 10)


--

(594,000)

--

--


(594,000)

Deferred tax on share based payments


--

--

--

96,883


96,883

















Balance at 30 June 2015 (unaudited)


220,000

2,652,957

3,790,000

35,477


6,698,434

 

MARTINCO PLC

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2015






Unaudited


Unaudited


Audited






6 Months Ended


6 Months Ended


12 Months Ended






30.06.15


30.06.14


31.12.14






£


£


£

Cash flows from operating activities



















Profit before income tax





1,151,973


801,836


1,926,502

Depreciation and amortisation charges




129,137


9,900


74,087

Profit on disposal of intangible assets




(1,152)


--


(4,007)

Finance costs




43,401


--


22,295

Finance income





(29,271)


(25,517)


(51,140)











Operating cash flow before changes in working capital


1,294,088


786,219


1,967,737











Increase in trade and other receivables



(30,029)


(17,107)


(107,279)

(Decrease)/increase in trade and other payables



(91,643)


(126,824)


77,153











Cash generated from operations




1,172,416


642,288


1,937,611










Interest paid





(49,323)


--


(203)

Tax paid





(195,700)


--


(609,292)











Net cash generated from operations




927,393


642,288


1,328,116











Cash flows from investing activities









Purchase of Subsidiary undertakings net of cash acquired




--


--


(5,065,902)

Purchase of intangible assets




--


(277,450)


(326,317)

Purchase of tangible assets




(5,463)


(5,424)


(17,520)

Proceeds from sale of intangible assets




287,052


259,428


341,576

Proceeds from sale of tangible assets




--


--


24,646

Interest received





29,271


25,517


51,140











Net cash generated from/(used in) investing activities



310,860


2,071


(4,992,377)











Cash flows from financing activities









(Repayment of)/proceeds from borrowings




(250,000)


--


2,500,000

Equity dividends paid




(594,000)


--


(286,000)











Net cash (used in)/generated from investing activities



(844,000)


--


2,214,000











Increase/(decrease) in cash and cash equivalents


394,253


644,358


(1,450,261)











Cash and cash equivalents at the beginning of the period


3,367,259


4,817,520


4,817,520











Cash and cash equivalents at end of period



3,761,512


5,461,878


3,367,259

               

MARTINCO PLC

NOTES TO THE INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

1.       GENERAL INFORMATION

The principal activity of MartinCo plc and its subsidiaries is that of a UK residential property franchise business. The Group operates in the UK. The company is a public limited company incorporated and domiciled in the UK. The address of its head office and registered office is 2 St Stephen's Court, St Stephen's Road, Bournemouth, Dorset, UK.

2.       GOING CONCERN

The interim financial information has been prepared on the basis that the Group is a going concern.

When assessing the foreseeable future the directors have looked ahead for a period of more than 12 months from the date of approval of the interim financial information. The directors have a reasonable expectation that the Group has adequate resources to continue to trade for the foreseeable future and, therefore, consider it appropriate to prepare the Group's interim financial information on a going concern basis.

3.       BASIS OF PREPARATION

The consolidated interim financial information for the six months ended 30 June 2015 was approved by the Board and authorised for issue on 8 September 2015. The results for 30 June 2015 and 30 June 2014 are unaudited. The disclosed figures are not statutory accounts in terms of Section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2014 on which the auditors gave an audit report which was unqualified and did not contain a statement under Section 498(2) or (3) of the Companies Act 2006, have been filed with the Registrar of Companies. The annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards as adopted by the European Union.

This interim report has been prepared on a basis consistent with the accounting policies expected to be applied for the year ending 31 December 2015, and uses the same accounting policies and methods of computation applied for the year ended 31 December 2014.

4.       BASIS OF CONSOLIDATION

The Group's interim financial information includes those of the parent company and its subsidiaries, drawn up to 30 June 2015. Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The Group applies the acquisition method to account for business combinations. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. When necessary amounts reported by subsidiaries have been adjusted to conform with the Group's accounting policies.

5.       SEGMENTAL REPORTING

The board of Directors, as the chief operating decision-making body, review financial information for and make decisions about the Group's overall franchising business and have identified a single operating segment, that of property franchising.

MARTINCO PLC

NOTES TO THE INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

6.       REVENUE

The Directors believe there to be three material income streams relevant to property franchising which are split as follows:




Unaudited


Unaudited


Audited




6 Months Ended


6 Months Ended


12 Months Ended




30.06.15

30.06.14


31.12.14




£


£


£

Management service fee



2,898,748


1,803,200


4,048,575

Franchise sales



130,258


160,024


423,779

Other



324,931


305,754


703,820




3,353,937


2,268,978


5,176,174

 

            All revenue is earned in the UK and no customer represents greater than 10 per cent of total revenue in the periods reported.

                       

7.       EXCEPTIONAL ITEMS

The exceptional items represent costs relating to the acquisition of Xperience (Xperience Franchising Limited and Whitegates Estate Agency Limited) in the year ended 31 December 2014, and subsequent redundancy costs as part of the reorganisation in period ended 30 June 2015.

8.       TAXATION

The underlying tax charge is based on the expected effective tax rate for the full year to December 2015. The majority of the tax arises from applying this effective tax rate to the profit on ordinary activities

MARTINCO PLC

NOTES TO THE INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

9.       EARNINGS PER SHARE

Earnings per share is calculated by dividing the profit for the financial period by the weighted average number of shares during the period.










Unaudited


Unaudited


Audited



6 Months Ended


6 Months Ended


12 Months Ended



30.06.15


30.06.14


31.12.14

Basic earnings per share














Weighted average number of shares


22,000,000


22,000,000


22,000,000








Profit for the period from continuing activities (£)


918,804


631,142


1,491,461

Profit for the period from discontinued activities (£)


-


4,405


18,565








Total profit for the period (£)


918,804


635,547


1,510,026








Earnings per share - continuing activities (pence)


4.2p


2.9p


6.9p

Earnings per share - discontinued activities (pence)


--


--


--








Total Earnings per share


4.2p


2.9p


6.9p

 

 



Unaudited


Unaudited


Audited



6 Months Ended


6 Months Ended


12 Months Ended



30.06.15


30.06.14


31.12.14

Diluted earnings per share














Weighted average number of shares


22,000,000


22,000,000


22,000,000

Dilutive effect of share options on ordinary shares


836,447


845,040


832,818



22,836,447


22,845,040


22,832,818








Diluted earnings per share - continuing activities (pence)


4.0p


2.8p


6.6p

Diluted earnings per share - discontinued activities (pence)


--


--


--








Diluted earnings per share (pence)


4.0p


2.8p


6.6p








               

MARTINCO PLC

NOTES TO THE INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

10.     DIVIDENDS




Unaudited


Unaudited


Audited




As at


As at


As at




30.06.15

30.06.14

31.12.14




£


£


£

Dividends (ordinary share of £0.01 each)



594,000


--


286,000

Dividend per share



2.7p


--


1.3p

 

The dividends above are the amounts paid in the respective periods. The maiden interim dividend of 1.3p per share (£286,000 in total) was paid on 30 September 2014 and the final dividend for the financial year ended 31 December 2014 of 2.7p (£594,000 in total) was paid on 11 May 2015.

 

                MARTINCO PLC

NOTES TO THE INTERIM RESULTS

                FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

11.     INTANGIBLE ASSETS



Master Franchise Agreement


 

 

Brands


Customer Lists


Goodwill


Total



£


£


£


£


£

Cost






















Balance at 1 January 2014


--


--


--


75,000


75,000

Additions

--


 

--


307,050


--


307,050











Balance at 30 June 2014 (Unaudited)

--


--


307,050


75,000


382,050












Additions

--


--


19,267


--


19,267

Acquired via business combinations

4,075,085


 

571,000


225,204


1,313,217


6,184,506

Transferred to assets held for sale

--


--


(271,000)


--


(271,000)












Balance at 31 December 2014 (Audited) and 30 June 2015 (Unaudited)

4,075,085


571,000


280,521


1,388,217


6,314,823












Amortisation






















Balance at 1 January 2014


--


--


--


--


--

Charge for period


--


--


3,571


--


3,571

Balance at 30 June 2014 (Unaudited)

--


--


3,571


--


3,571












Charge for period


27,167


--


30,066


--


57,233

Transferred to assets held for sale

--


--


(16,154)


--


(16,154)

Balance at 31 December 2014 (Audited)

27,167


--


17,483


--


44,650












Charge for period


81,502


--


39,163


--


120,665

Balance at 30 June 2015 (Unaudited)

108,669


--


56,646


--


165,315












Net book value






















30 June 2014 (Unaudited)


--


--


303,479


75,000


378,479











31 December 2014 (Audited)


4,047,918


 

571,000


263,038


1,388,217


6,270,173












30 June 2015 (Unaudited)


3,966,416


571,000


223,875


1,388,217


6,149,508












               

 

                MARTINCO PLC

NOTES TO THE INTERIM RESULTS

                FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

12.       TRADE AND OTHER RECEIVABLES




Unaudited


Unaudited


Audited




As at


As at


As at




30.06.15

30.06.14

31.12.14




£


£


£

Trade receivables



54,360


56,100


55,536

Loans to franchisees



176,332


36,000


190,333

Prepayments and accrued income



635,890


383,737


552,187

Other receivables



111,242


150,818


167,263












977,824


626,655


965,319

 

13.       CALLED UP SHARE CAPITAL

 


Unaudited


Unaudited


Audited


As at


As at


As at


30.06.15


30.06.14


31.12.14


£


£


£







Group






22,000,000 Authorised, allotted issued and fully paid Ordinary Shares of 1p each

220,000


220,000


220,000







 

 

14.       OTHER RESERVES



Merger

 Reserve


Share Based Payment Reserve


 

Total



£


£


£

1 January 2014 (Audited)


(179,800)


40,874


(138,926)

30 June 2014


(179,800)


96,179


(83,621)

31 December 2014 (Audited)


(179,800)


118,394


(61,406)

30 June 2015


 (179,800)


215,277


35,477








 

Merger reserve

 

The merger reserve relates to the acquisition of Martin & Co (UK) Limited by MartinCo PLC.  This did not meet the definition of a business combination and therefore, falls outside of the scope of IFRS 3. This transaction was accounted for in accordance with the principles of merger accounting as set out in Financial Reporting Standard 6 - Acquisitions and Mergers.

 

Share-based payment reserve

 

The share based payments reserve comprises charges made to the income statement in respect of share-based payments and related deferred tax impacts under the Group's equity compensation scheme.

 

MARTINCO PLC

NOTES TO THE INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2015

 

15.   BORROWINGS



Unaudited


Unaudited


Audited



As at


As at


As at



30.06.15


30.06.14


31.12.14



£


£


£

Repayable within 1 year:







Bank loan (term loan)


500,000


--


500,000








Repayable in more than 1 year:







Bank loan (term loan)


1,750,000


--


2,000,000








Bank loans due after more than 1 year are repayable as follows:














Between 1 and 2 years


500,000


--


500,000

Between 2 and 5 years


1,250,000


--


1,500,000

 

The term loan of £2.25m (31.12.14: £2.5m) is secured with a fixed and floating charge over the Group's assets and a cross guarantee across all companies in the Group. The loan commenced on 30 October 2014 and is repayable over 5 years in equal instalments. Interest is charged quarterly on the outstanding amount and the rate is fixed during the term at 4.08%. At 31 December 2014 the unutilised amount of the facility was £2.5m and on 30 June 2015 the unutilised amount of the facility was £2.75m.

 

16.     TRADE AND OTHER PAYABLES




Unaudited


Unaudited


Audited




As at


As at


As at




30.06.15

30.06.14

31.12.14




£


£


£

Trade payables



124,997


76,372


178,673

Accruals



448,962


214,617


503,752

Other taxes and social security



354,535


236,162


340,534

Other payables



34,000


45,742


23,571




962,494


572,893


1,046,530

               

17.     DISCONTINUED OPERATIONS AND HELD FOR SALE ASSETS AND LIABILITIES

Discontinued operations arose from the Board's decision to discontinue the activity of owning and managing its own offices. All bar one of the owned offices were sold in 2013. The remaining office in Worthing was sold on 30th December 2014.

 

In June 2014, the Group acquired its first portfolio of 374 managed lettings properties in Saltaire for £0.3m. On 21 November 2014 T G Fisheries Ltd, the franchisee operating Martin & Co Saltaire, notified the Group of its intention to purchase the portfolio of properties it was managing on behalf of the Group in accordance with the services agreement signed between the parties. At the 31 December 2014 this asset was classified as held for resale but not as a discontinued operation because the Group intends to continue to pursue and acquire portfolios of managed properties which meet its criteria. The sale was completed on 30 January 2015.

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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