Market News - Page 787

LONDON STOCK EXCHANGE GROUP plc
ANNOUNCEMENT OF INTERIM RESULTS
FOR THE 6 MONTHS ENDED 30 JUNE 2016
Unless otherwise stated, all figures below refer to continuing operations(1) for the six months ended 30 June 2016. Comparative figures are for continuing operations for the six months ended 30 June 2015 (H1 2015).
— Continued good financial performance with growth across all core business areas – in particular, in Information Services, including strong results at FTSE Russell, in Capital Markets and at LCH
— Revenue up 9% to GBP721.9 million (H1 2015: GBP663.0 million); total income up 11% to GBP785.8 million (H1 2015: GBP705.9 million)
— Adjusted operating profit(2) up 9% at GBP333.3 million (H1 2015: GBP305.7 million) as operating expenses remained well controlled while continuing to invest in growth opportunities; operating profit of GBP199.0 million (H1 2015: GBP210.5 million)
— Profit after tax of GBP114.5 million (H1 2015: GBP130.8 million) which included non-recurring merger related expenses; and, after accounting for the previously announced tax effects of the Russell IM sale, becomes a loss after tax of GBP15.9 million on a reported basis including discontinued operations (H1 2015: GBP165.1 million)
— Adjusted EPS(2) up 16% at 57.7 pence (H1 2015: 49.9 pence); basic EPS down 18% to 27.4 pence (H1 2015: 33.4 pence)
— Interim dividend increased 11.1% to 12.0 pence per share (H1 2015: 10.8 pence per share) in line with our stated dividend policy — Strong balance sheet position with leverage reduced to 1.3 x net debt:EBITDA

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A GOOD FIRST HALF PERFORMANCE
Financial highlights — Total sales up 6.0% to GBP422m
— Company-managed shop like-for-like sales up 3.8%

— Operating profit excluding property gains and exceptional charge* up 6.7% to GBP27.2m (2015: GBP25.5m)
— Property disposal gains of GBP2.2m (2015: GBP0.1m)
— Diluted earnings per share excluding exceptional charge* 22.3p (2015: 19.5p)
— Pre-tax profit including property profits and exceptional charges GBP25.4m
— Continued strong cash generation: GBP44.7m net inflow from operating activities
— Ordinary interim dividend per share of 9.5p (2015: 7.4p)

*before exceptional pre-tax charge of GBP4.0m (2015: GBP nil) in relation to previously announced restructuring
Operational highlights
— Good results from sales initiatives:

– strengthening of 'Balanced Choice' range
– further development of breakfast and hot drinks offer
– successful launch of improved Greggs Rewards app …

Highlights — 480 MW new capacity commissioned in the year – total operating capacity 750 MW
— EBITDA margin of 39.5% up from 33.4% compared with FY15
— Profit before tax of GBP28.6 million up by 32% compared with FY15
— EPS of 5.29 pence up by 8% compared with FY15
— Q1 FY17 aggregate group revenues approx. GBP57 million and average group PLF 72%
— 334 MW allocated to 2-3 year captive sales agreements at Chennai plant – transforms sales mix
— Initial target dividend of 15% of net earnings commencing with an interim in calendar 2016

— 62 MW solar growth projects expected to be funded from a combination of new debt facilities and internal equity
Summary financial information …

The pre-tax profit for the Group for the twelve month period ending 30th April 2016 was GBP12.3 million (2015: GBP20.1 million), a decrease of 39% on a revenue of GBP124 million (2015: GBP127 million) which is 3% down on the figures reported for the same period last financial year. The Directors propose an unchanged ordinary dividend of 42.348p (2015: 42.348p).
The diversity of products that address different world markets is part of the Group's strength, but even the history of diversity between our foundry, our valve companies that primarily address the oil, gas and LNG industries, our pump companies that primarily address the mining industries, our radar systems company and our ten refractory companies has not been enough to prevent the decline in profits over the past two years.
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David Fischel, Chief Executive, commented:
“We are pleased to report a strong set of results for the first six months of 2016 with a 10 per cent increase in underlying earnings per share driven by excellent growth in net rental income of 7.5 per cent on a like-for-like basis. We have therefore raised our guidance for full year like-for-like net rental income growth to 3 to 4 per cent.
Letting activity was also very positive leading to an improved occupancy ratio of 96 per cent. Our established retailers, such as Zara and Next, have been upsizing space and we have welcomed new lifestyle brands and international retailers at a time when the supply of quality retail space is limited. We continue to focus on strengthening and improving our prime regional shopping centres, introducing new leisure concepts and increasing the dwell time of our 400 million customer visits per year.
With over GBP500 million of cash and available facilities, we are well positioned to take opportunities when they arise, such as the acquisition in the period of the other half of intu Merry Hill which adds to the considerable momentum from our active asset management and development projects, both in the UK and Spain.”
Investor conference call
A presentation to analysts and investors will take place at UBS, 1 Finsbury Avenue, London EC2 at 09.30BST on 28 July 2016. The presentation will also be available to international analysts and investors through a live audio call and webcast. The presentation and a copy of this announcement will be available on the Group's website intugroup.co.uk….

On 10 February 2016, Pinewood Group plc (“Pinewood” or the “Company”) announced that it had appointed Rothschild to assist with a strategic review of Pinewood's capital base and structure. The background to the strategic review was that the Company's shareholder register has been tightly held for a number of years, which has stifled liquidity in the Company's shares and prevented the Company from obtaining a main market listing. The Board also recognised the requirement for a future funding strategy to be in place in order to build on Pinewood's successes to date.
The Pinewood Board is pleased to confirm the progress of this strategic review process and announces that it has reached agreement with Venus Grafton Sarl (“Venus Grafton”), an indirect wholly-owned subsidiary of PW Real Estate Fund III LP (“PW Fund III”), on the key terms of a possible cash offer for Pinewood by Venus Grafton or one of its direct or indirect wholly-owned subsidiaries (“Bidco”) (the “Possible Offer”) which, if made, the Pinewood Board intends to recommend to Pinewood shareholders (subject to reaching agreement on standard terms and conditions customary for a firm offer of this nature).
Bidco has completed due diligence on the Company and the Possible Offer is pre-conditional only on Bidco completing its financing arrangements, which involves finalising and documenting credit committee approved proposals from financing parties, which Bidco anticipates will take up to 4 weeks to conclude. The significant majority of the cash consideration payable by Bidco under the Possible Offer will be provided by PW Fund III, with the balance from the third party finance parties. This pre-condition regarding Bidco's financing is not waivable.
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Financial Summary
H1 2016 Q2 2016
————————- ————————
$m % change $m % change
——- —————- —— —————-
CER(1) Actual CER(1) Actual
———————————– ——- ——- ——- —— ——- ——-
Total Revenue 11,718 (3) (5) 5,603 (10) (11)
Product Sales 11,034 (2) (5) 5,469 (5) (6)
Externalisation Revenue 684 (12) (12) 134 (72) (72)
———————————– ——- ——- ——- —— ——- ——-

Reported Operating Profit 1,341 (24) (28) 303 (64) (67)
Core Operating Profit(2) 2,999 (14) (17) 1,406 (21) (22)
———————————– ——- ——- ——- —— ——- ——-

Reported Earnings Per Share (EPS) $0.51 (45) (48) $0.00 (99) (100)
Core EPS $1.78 (20) (22) $0.83 (31) (31)
———————————– ——- ——- ——- —— ——- ——-

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27th July 2016
Renishaw plc and subsidiary undertakings
Preliminary announcement of results for the year ended 30th June 2016
HIGHLIGHTS

2016 2015 Change

Revenue (GBPm) 436.6 494.7 -12%

Operating profit (GBPm) 79.5 143.9 -45%

Profit before tax (GBPm) 80.0 144.2 -44%

Earnings per share (pence) 94.9 167.5 -43%

Dividend per share (pence) 48.0 46.5 +3.2%

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