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Safestay PLC - Half-year Report

RNS Number : 9367Z
Safestay PLC
24 September 2020
 

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR")

 

24 September 2020

 

Safestay plc

("Safestay" or "the Company" or "the Group")

 

Interim Results

For the Six Months to 30 June 2020

 

Safestay (AIM: SSTY), the owner and operator of an international brand of contemporary hostels, announces its unaudited interim results for the six months ended 30 June 2020

 

 

Trading Highlights

 

·    Safestay operates 20 hostels with approximately 4,800 beds across 11 European and 4 UK cities

·    In response to the COVID-19 pandemic, and in line with the hospitality industry globally, all our hostels closed on 1 April 2020 and a gradual reopening programme began from 26 May 2020

·    As a result occupancy was 55% (based only on hostels while they were open)

·    Total revenues decreased by 58% to £3.4 million (2018: £8.1 million)

·    Recorded Adjusted EBITDA (post IFRS 16 adjustment) loss of £1.2 million (2019: £2.5 million profit)

·    To offset the reduction in income, the Group reduced costs where practical, taking advantage of government support schemes and working with landlords to reduce rents

·    In April the Group secured a £5 million overdraft facility with HSBC and as at 16 September 2020 the cash in bank was -£1 million

 

H2 2020 and beyond

 

·    All hostels re-opened by 28 August, except for London Kensington Holland Park and Barcelona Gothic

·    On 2 September, the Company received a £0.2 million government backed loan in Germany

·    In July and August, the Company has traded at the higher end of the Board's forecast scenarios

·    On 23 September, the Company agreed with HSBC in principle to replace the £5 million overdraft facility with a £5 million Coronavirus Business Interruption Loan Scheme (CBILS) 

Larry Lipman, Chairman of Safestay, said:

"We made a good start to 2020, however, trading was materially impacted by the Covid-19 pandemic from March onwards. We responded quickly to protect our financial position and the safety of our guests and employees. As a result, the business is stable and it is encouraging to have now reopened nearly all our hostels. While it is still difficult to predict the pace of our recovery,  we are  re-engaging effectively with our customer base and we are confident that we will in time return our hostel portfolio to pre-Covid-19 occupancy levels."

 

 

 

Safestay plc                                                                                                       Tel: +44 (0) 20 8815 1600

Larry Lipman

Liberum (Nomad & Joint Broker)                                                                 Tel: +44 (0) 20 3100 2000

Andrew Godber / Edward Thomas / Miquela Bezuidenhoudt

Novella                                                                                                                Tel: +44 (0) 20 3151 7008

Tim Robertson / Fergus Young

About Safestay

Safestay (AIM: SSTY) is the owner and operator of an international brand of contemporary hostels.

For more information visit our:

Website: www.safestay.com 

Vox Markets page: https://www.voxmarkets.co.uk/company/SSTY/news/ 

Instagram page: www.instagram.com/safestayhostels/ 

 

 

Chairman's statement

 

Introduction

 

The trading results for the six months to 30 June 2020 reflect the challenges which Safestay and more generally the hospitality industry have had to face as a result of the Covid-19 pandemic. It is however pleasing to see that the Company had a strong start in January and February as an underlying reminder of the appeal of our portfolio before the pandemic took effect. I am also pleased that we were quick to implement adequate measures to protect our cash position during the lock down period and successfully executed our reopening strategy to ensure the safety of our guests and employees. We are still operating in a very uncertain environment, but we will work through these challenging times and emerge in a positive position in 2021. Since the half-year end, we have been seeing a gradual increase in occupancy across the hostels that have been open.

 

Financial review

 

Due to the closure of the hostels, the Group operated just 45% of its available bed stock for the first six months of 2020, and recorded a 58% decrease in revenues to £3.4 million (2019: £8.1 million) leading to an adjusted EBITDA (post IFRS 16 adjustment) loss of £1.2 million (2019: £2.5 million profit).

 

To mitigate the reduction in revenue, the Company negotiated rent reductions from landlords and applied for government support where it was available. Consequently, the Group benefited from £0.4 million of rent relief from March to June and total revenue includes £0.3 million of income received via government support schemes. In some countries, employees were paid directly by the government whilst being furloughed, which corresponded to approximately a further £0.3 million saving.

 

The Group recorded a loss before tax of £4.7 million (2019: loss before tax of £0.9 million) which includes £0.3 of exceptional costs in relation to the expansion projects completed in 2020. This led to a loss per share of 7.30p (2019: -1.40p per share).

 

In April 2020, the Company agreed a new £5 million overdraft facility from HSBC.  Cash in bank as at 16 September 2020 was approximately -£1 million

 

As at 30 June 2020, net asset value per share was 48.2p per share (2019: 41.8p per share) following the revaluation of the London Elephant & Castle property in September 2019 to £26.8 million, increasing from £16 million in 2017.

 

Operating review

 

Safestay currently operates 3,937 beds in 18 properties across 11 European and 4 UK cities, with another 900 beds under development in Paris and Venice where progress has been delayed due to the Covid-19 pandemic and both sites are now expected to open in 2022. While revenues decreased in the first 6 months of 2020, it is worth differentiating between the first 2 months of the year and the last 4 months when the business was impacted by the pandemic. In January and February, total revenue increased 32% versus the previous year, with an underlying like for like increase of 15%. Occupancy was 64%, up from 50% in 2019, for these first two months. In March, the level of bookings started to fall following the implementation of travel restrictions and by 1 April all hostels were closed.

 

The Group has capitalised on the recent renovations of the restaurants in Barcelona Passeig de Gracia and Edinburgh to increase the like for like F&B revenue by 22% in the first 2 months of the year. Thanks to the new hostels opened in 2019 and early 2020, this segment increased 46% during the same period. Following the renovation of the Bar in Lisbon in February 2020, and the addition of the Athens rooftop bar since January 2020, we hope that we can continue this trend when the business normalises.

 

In 2019 the Group decided to set aside an annual capex fund to improve as well as maintain the premium standards of the portfolio. Some of the works planned in 2020 were completed by the time we decided to pause the renovation program to protect our cash position in March 2020. These included the renovation of the Brussels property for £0.3 million which also included its conversion from a hotel into a 185 bed hostel, and the renovation of the Glasgow property acquired in October 2019, and its conversion into a 251 bed hostel. The renovation of the rooms in the Gothic hostel in Barcelona and the bar and showers in Lisbon, which both started in December 2019, were also completed in the first quarter of 2020. Other capex programs have been suspended for the time being.

 

Post period end, on average, in July 2020, 30% of the Group's bed stock was available and 16% of such bed stock was occupied. This increased respectively to 63% and 22% in August. We are encouraged that the occupancy levels gradually increased week on week as more hostels re-opened.

Acquisitions

 

The Group has added 414 beds in 3 hostels in 2020. The acquisition of the leasehold of the 132 bed hostel in Athens was completed in January for £1.3 million. Also in January, Safestay completed the £2.4 million acquisition of the 2 leasehold hostels in Warsaw (158 beds) and Bratislava (124 beds), both acquired from Dream Management Group Ltd. The 3 leases are capitalised in our balance sheet under IFRS 16 and have increased the total lease liability by £3.2 million.

 

Financing

 

On 13 January 2020, the Group completed the renewal of its debt facility with HSBC. The £17.9 million facility which was agreed for 5 years in April 2017 for an original amount of £18.4 million, was replaced with a new facility of £22.9 million for 5 years until 2025. The terms are similar to the previous facility, with interests of 2.45% + LIBOR and same covenants as before.

 

It was announced on 14 April 2020 that the Company had agreed a new £5 million overdraft facility, also from HSBC, which together with the Company's cash reserves, would satisfy the Company's working capital cash requirements during and after the lock down period. At the same time, the covenants in the Company's £22.9 million debt facility have been waived until 31 December 2020.

 

On 23 September 2020, the Company agreed with HSBC in principle to amend the covenant test for the period until 30 September 2021 inclusive. The Debt Service Cover Ratio and the Interest Cover Ratio were both replaced with a commitment from the Company to achieve a minimum level of adjusted EBITDA for each quarter from October 2020 to September 2021.

 

On 23 September 2020, the Company agreed with HSBC in principle to replace the existing £5 million overdraft facility with a £5 million Coronavirus Business Interruption Loan Scheme (CBILS). The loan has a 6 year maturity. It is interest free in the first year and 3.9% from the second year.

 

On 23 June, the Company received a £0.3 million government backed loan in Austria.

 

 

As disclosed in the trading update released on 24 August 202, the Company has produced forecasts under two alternative indicative scenarios, a base case and a low case. The Company has sufficient access to capital to support the business under its base case forecast scenario until March 2021 by which time this scenario predicts the business will be back to breakeven. That said, this is an unpredictable period and the Company is evaluating additional funding options to address the funding shortfall which would occur by 31 January 2021 under the assumptions contained in its low case forecast scenario. The Group owns the freeholds of the hostels in Glasgow, Pisa and York, which could therefore be disposed of, either in the form of a sale and lease back transaction or a straight disposal. The Group might also contemplate the early termination of the leases which are anticipated to generate losses in the next months, subject to an agreement being reached with the relevant landlords. The Group could also temporarily close some hostels during the winter if it is anticipated that the income for these hostels does not cover the incremental costs of opening the hostels during this period. The Board is considering a range of options in relation to the business, including raising equity, but the Board is mindful of giving all shareholders the opportunity to participate in any such equity raise.

 

Outlook

 

As at today, all properties have re-opened, with the exception of the London Kensington Holland Park hostel and Barcelona Gothic. While occupancy levels are still relatively low, the trend is upwards, and we have the capital in place to support the business into next year under our most conservative forecast. We are mindful of the need to keep flexible and adapt to changing market conditions as they arise. However, in the absence of any significant changes the underlying trend across our portfolio is positive based currently on just domestic guests, and hopefully we can soon welcome foreign travelers back to our hostels.

 

 

 

 

Larry Lipman

Chairman 

24 September 2020

 

 

 

 

Condensed consolidated statement of comprehensive income

 

 

 

 

Unaudited

Unaudited

Audited

 

 

6 months to 30 June

2020

6 months to 30 June

2019

Year to 31 December 2019

 

Note

£000

£000

£000

 

 

 

 

 

Revenue                                                

2

3,412

8,083

18,379

Cost of sales

 

(572)

(1,223)

(2,875)

Gross profit

 

2,840

6,860

15,504

Administrative expenses

 

(6,104)

(5,972)

(12,996)

Operating profit / (loss) before exceptional expenses

 

(3,264)

888

2,508

 

EBIT

 

 

 

 

Exceptional expenses

 

(136)

(336)

(585)

Operating profit / (loss) after exceptional expenses

2

(3,400)

552

1,923

 

 

 

 

 

Finance costs

 

(1,327)

(1,456)

(2,558)

Loss before tax

 

(4,727)

(904)

(635)

Tax

 

(66)

-

(325)

Total comprehensive loss for the period attributable to owners of the parent company

 

(4,793)

(904)

(960)

 

 

 

 

 

 

 

Condensed consolidated statement of

financial position

 

Unaudited

Unaudited

Audited

 

 

30 June

2020

30 June

2019

31 December 2019

 

Note

£000

£000

£000

Non-current assets

 

 

 

 

Property, plant and equipment

 

89,963

66,512

87,366

Intangible assets

 

1,026

1,244

1,084

Goodwill

 

15,614

11,378

12,603

Total non-current assets

 

106,603

79,134

101,053

 

 

 

 

 

Current assets

 

 

 

 

Stock

 

64

44

85

Trade and other receivables

 

1,185

1,057

1,408

Derivative financial instruments

 

-

-

-

Cash and cash equivalents

 

(11)

8,305

2,954

Total current assets

 

1,238

9,406

4,447

 

 

 

 

 

Total assets

 

107,841

88,540

105,500

 

 

 

 

 

 

Current liabilities

 

 

 

 

Borrowings

 

(203)

280

279

Finance lease obligations

3

1,943

2,350

1,648

Trade and other payables

 

3,324

3,178

2,602

Total current liabilities

 

5,064

5,808

4,529

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

 

22,814

17,545

17,399

Finance lease obligations

3

48,492

37,313

46,483

Other payables

 

-

-

-

Deferred tax

 

71

105

105

Trade and other payables due in more than one year

 

217

720

767

Total non-current liabilities

 

71,594

55,683

64,754

 

 

 

 

 

Total liabilities

 

76,658

61,491

69,283

 

 

 

 

 

Net assets

 

31,183

27,049

36,217

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

10

647

647

647

Share premium account

 

23,904

23,904

23,904

Other components of equity

 

15,220

6,238

15,461

Retained earnings

 

(8,588)

(3,740)

(3,795)

Total equity attributable to owners of the parent company

 

31,183

27,049

36,217

 

 

 

Condensed consolidated statement of changes in equity

For the six months to 30 June 2020 (unaudited)

 

 

Share

capital

 

 

£000

Share

premium account

 

£000

Other Components of Equity

 

£000

Retained earnings

 

 

£000

Total

equity

 

 

£000

Balance at 1 January 2020

647

23,904

       15,461

(3,795)

36,217

Comprehensive income

 

 

 

 

 

Loss for the period

-

-

-

(4,793)

(4,793)

Movement in translation reserve

-

-

(258)

-

(258)

Total comprehensive income

-

-

(258)

(4,793)

(5,051)

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

Share-based payment charge for the period

-

-

17

-

17

Balance at 30 June 2020

647

23,904

15,220

(8,588)

31,183

 

For the six months to 30 June 2019 (unaudited)

 

 

Share

capital

 

 

£000

Share

premium account

 

£000

Other Components of Equity

 

£000

Retained earnings

 

 

£000

Total

equity

 

 

£000

Balance at 1 January 2019

647

342

23,904

14,504

6,221

1,772

(2,836)

(1,056)

27,936

19,837

Comprehensive income

 

 

 

 

 

Loss for the period

-

-

-

(904)

(904)

Total comprehensive income

-

-

-

(904)

(904)

 

 

 

 

 

 

Transactions with owners

 

 

 

 

 

Share-based payment charge for the period

-

-

17

-

17

Balance at 30 June 2019

647

23,904

6,238

(3,740)

27,049

 

 

Condensed consolidated statement of changes in equity

For the year ended 31 December 2019 (audited)

 

 

 

 

Share

Capital

 

 

£'000

Share

premium account

 

£'000

Other Components of Equity

 

£'000

Retained earnings

 

 

£'000

Total

equity

 

 

£'000

Balance at 1 January 2019

 

23,904

6,221

 

(2,836)

 

27,936

Comprehensive income

 

 

 

 

 

Loss for the year

-

-

-

(960)

(960)

Movement in translation reserve

 

 

(47)

 

(47)

Total comprehensive loss

 

-

 

-

 

(47)

 

(960)

 

(1,007)

Transactions with owners

 

 

 

 

 

Issue of shares

-

-

-

 

9,705

Share-based payment charge for the year

 

-

 

-

 

34

-

34

Revaluation reserve

-

                              -

9,253

-

9,253

Balance at 31 December 2019

 

 

 

 

 

 

 

 

Condensed consolidated statement of cash flows

 

 

 

Unaudited

Unaudited

Audited

Note

6 months to 30 June

2020

6 months to 30 June

2019

Year to 31 December 2019

 

£000

£000

£000

 

 

 

 

Operating activities

 

 

 

 

Cash generated from operations

5

(787)

3,538

5,445

Income tax paid

 

(134)

-

(217)

Net cash generated from operating activities

 

(921)

3,538

5,228

 

 

 

 

 

Investing activities

 

 

 

 

Purchase of property, plant and equipment

 

(755)

(2,774)

(1,413)

Purchase of intangible assets

 

(29)

(2)

(24)

 

Acquisition of business

 

(3,652)

(872)

(7,122)

Payment of deferred consideration

 

(498)

-

(395)

Net cash outflow from investing activities

 

(4,934)

(3,648)

(8,954)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Proceeds from borrowings

 

5,348

-

1,180

Repayment of borrowings

 

-

(851)

(528)

Proceeds from issue of share capital

 

-

17

   -

Fees related to borrowings

 

(255)

-

-

Amounts paid under finance leases

 

(1,857)

(311)

(3,242)

Interest paid

 

(346)

(299)

(589)

 

 

2,890

(1,444)

(3,179)

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

2,954

9,859

(6,905)

Net increase/(decrease) in cash and cash equivalents

 

(2,965)

(1,554)

9,859

Cash and cash equivalents at end of period

 

(11)

8,305

2,954

 

 

 

 

 

 

 

1.      ACCOUNTING POLICIES FOR THE GROUP AND COMPANY FINANCIAL STATEMENTS

Safestay plc is listed on the AIM market of the London Stock Exchange and is incorporated and domiciled in the UK.

The Group and Company interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. The financial statements have also been prepared in accordance with IFRSs adopted by the European Union and therefore the Group financial statements comply with Article 4 of the EU IAS regulation. 

These condensed interim financial statements have not been audited, do not include all the information required for full annual financial statements and should be read in conjunction with the Group's consolidated annual financial statements for the year ended 31 December 2019.

 

The financial statements have been presented in sterling, prepared under the historical cost convention, except for the revaluation of freehold properties and certain financial instruments.

The accounting policies have been applied consistently throughout all periods presented in these financial statements.  These accounting policies comply with each IFRS that is mandatory for accounting periods ending on 30 June 2020.

New standards and interpretations effective in the year

The following standards were effective from 1 January 2019:

·    IFRS 3: Business combination - amendment effective 1 January 2020

IFRS 3 establishes different accounting requirements for a business combination as opposed to the acquisition of an asset or a group of assets that does not constitute a business. Business combinations are accounted for by applying the acquisition method, which, among other things, may give rise to goodwill. In contrast, when accounting for asset acquisitions, the acquirer allocates the transaction price to the individual identifiable assets acquired and liabilities assumed on the basis of their relative fair values and no goodwill is recognised. Therefore, whether or not an acquired set of activities and assets is a business, is a key consideration in determining how the transaction should be accounted for. The amendments made to the IFRS 3 are set out to clarify the definition of a business. The amendment also adds an optional concentration test that allows a simplified assessment of whether an acquired set of activities and assets is not a business.

Acquisitions made in the 6 months to June 2020 have been treated as business combinations under the amended IFRS 3 standard (Note 4) 

 

2.            SEGMENTAL ANALYSIS

 

 

Unaudited

6 months to 30 June

2020

£000

Unaudited

6 months to 30 June

2019

£000

Audited

Year to 31 December 2019

£000

 

Hostel accommodation

 

2,400

6,571

15,115

Food and Beverages sales

 

404

1,128

2,492

Other income

 

608

384

772

Total Income

 

3,412

8,083

18,379

 

 

UNAudited 6 months to 30 june 2020

UK

Spain

Rest of Europe

Shared services

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Revenue

1,842

728

842

-

3,412

Profit/(Loss) before tax

(571)

(811)

(1,613)

(1,732)

(4,727)

Finance costs

480

244

213

390

1,327

Operating Profit after exceptional expenses

(91)

(567)

(1,400)

(1,342)

(3,400)

Depreciation & Amortisation

734

692

620

26

2,072

Exceptional & Share based payment expense

-

-

-

136

136

Adjusted EBITDA

643

125

(780)

(1,180)

(1,192)

Rental charges (IFRS 16)

-

(757)

(604)

-

(1,361)

Adjusted EBITDA (pre-IFRS 16)

643

(632)

(1,384)

(1,180)

(2,553)

 

 

 

Audited Year to 31 December 2019

UK

Spain

Rest of Europe

Shared services

TOTAL

 

£'000

£'000

£'000

£'000

£'000

Revenue

9,401

4,909

4,069

-

18,379

Profit/(Loss) before tax

3,347

(387)

498

(4,093)

(635)

Finance costs

338

681

308

1,231

2,558

Operating Profit after exceptional expenses

3,685

294

806

(2,862)

1,923

Depreciation & Amortisation

1,265

1,555

692

-

3,512

Exceptional & Share based payment expense

-

-

-

619

619

Adjusted EBITDA

4,950

1,849

1,498

(2,243)

6,054

Rental charges (IFRS 16)

-

(1,504)

(744)

-

(2,248)

Adjusted EBITDA (pre-IFRS 16)

4,950

345

754

(2,243)

3,806

 

 

 

3.          LEASES

 

Lease liabilities are presented in the statement of financial position as follows:

 

 

 

Unaudited

Unaudited

Audited

 

 

30 June

2020

30 June

2019

31 December 2019

 

 

£000

£000

£000

Current

 

1,943

2,350

1,648

Non-current

 

48,492

37,313

46,483

Total

 

50,435

39,663

48,131

 

 

The Group has leases for hostels across Europe. With the exception of short-term leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as an asset and a lease liability. With the adoption of IFRS16, operating leases under IAS17 are now categorised as a right-of-use asset. The Group continues to classify its finance leases as a lease liability and a leasehold land and buildings asset. The Group classifies its right-of-use assets in a consistent manner to its property, plant and equipment.

 

For leases classified as right-of-use assets, each lease generally imposes a restriction that, unless there is a contractual right for the Group to sublet the asset to another party, the right-of-use asset can only be used by the Group. Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. Some leases contain an option to extend the lease for a further term. The Group is prohibited from selling or pledging the underlying leased assets as security. The Group must keep those properties in a good state of repair and return the properties in their original condition at the end of the lease. Further, the Group must insure items of property, plant and equipment and incur maintenance fees on such items in accordance with the lease contracts.

 

The table below describes the nature of the Group's leasing activities by the type of right-of-use asset recognised on the balance sheet:

 

 

Right-of-use asset

No of right-of-use assets leased

Range of remaining term

Average remaining lease term

No of leases with extension options

No of leases with options to purchase

No of leases with variable payments linked to an index

No of leases with termination options

Hostel buildings - Operating leases

15

7 - 20 years

13 years

8

0

9

0

Hostel buildings - Long leases

3

50 - 150 years

113 years

0

2

3

0

 

The lease liabilities are secured by the related underlying assets. Future minimum lease payments

at 30 June 2020 were as follows:

 

 

Minimum lease payments due

 

Within 1 year

1 - 2 years

2 - 3 years

3 - 4 years

4 - 5 years

After 5 years

Total

 

 

 

 

 

 

 

 

Lease payments

3,789

3,797

3,798

3,798

3,757

65,069

84,009

Finance charges

(1,846)

(1,780)

(1,712)

(1,643)

(1,569)

(25,024)

33,573

Net present values

1,943

2,017

2,086

2,156

2,188

40,046

50,435

 

The group has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets.

 

4.          ACQUISITIONS

 

 

 

 

 

 

The Group added 3 hostels. Athens was completed in January for £1.3 million. Also in January, Safestay acquired 2 leasehold hostels from Dream Management Group Ltd in Warsaw and Bratislava for £2.4 million. The 3 leases are capitalised in our balance sheet under IFRS 16 and have increased the total lease liability by £3.2 million.

 

The provisional fair values of assets and liabilities acquired:

 

 

 

 

 

Athens

Bratislava

Warsaw

Unaudited 30 June 2020

Unaudited30 June 2019

Number of sites purchased

 

 

 

3

 1

 

Provisional fair value

£'000 

£'000 

£'000 

 £'000

 £'000

Property, plant & equipment

        88

20                 

           521

629

2,130

Right of use assets

1,978

514

731

3,223

-

Intangible assets

-

-

-

-

-

Current assets

1

1

51

53

-

Cash

-

29

63

92

85

Debt

-

-

-

-

-

Deferred revenue, trade & Other payables

(9)

(2)

(67)

(78)

(33)

Lease Liabilities

1,978

514

731

3,223

 

Deferred tax

-

-

-

-

-

Goodwill

1,224        

1,126                  

606

2,956

790

 

 

 

 

 

 

Consideration

 

 

 

 

 

Net cash paid on acquisition

1,304

1,174

1,174

3,652

2,972

Deferred payments

-

-

-

-

-

Total Consideration

1,304

1,174

1,174

3,652

2,972

                 

 

5.          NOTES TO THE CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

 

 

 

 

 

 

Unaudited

Unaudited

Audited

 

6 months to 30 June

2020

6 months to 30 June

2019

Year to 31 December 2019

 

£000

£000

£000

 

 

 

 

Loss before tax

 

(4,727)

(904)

(635)

Adjustments for:

 

 

 

 

Depreciation of property, plant and equipment and

 

2,072

1,614

3,512

amortisation of intangible assets

 

 

 

 

Finance costs

 

1,327

1,456

2,440

Loss on disposal of fixed assets

 

-

-

-

Share-based payments

 

17

17

34

Exchange movements

 

(303)

(67)

(2)

Changes in working capital

 

 

 

 

Decrease/(Increase) in inventory

 

23

-

(39)

(Increase)/Decrease in trade receivables

 

222

144

(170)

Increase/(Decrease) in trade and other payables

 

582

1,278

305

Cash generated from operating activities

 

(787)

3,538

5,445

 

 

 

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