For immediate release
28 November 2022
Aquila Services Group plc
Unaudited Interim Results for the six months ended 30 September 2022
Aquila Services Group plc (''the Company''), is the holding company for Altair Consultancy and Advisory Services Ltd (''Altair''), Aquila Treasury and Finance Solutions Ltd ("ATFS") and Oaks Consultancy Ltd ("Oaks") which form the Group (''the Group'').
The Group works in the UK and internationally. Its expertise is in the provision, financing and management of affordable housing by housing associations, local authorities, government agencies and other non-profit organisations, high level business advice to the property sector and support for organisations including multi-academy education trusts and sports foundations working in communities to improve health and well-being opportunities.
Results Highlights
| | 6 Months to 30 Sept 2022 (unaudited) | 6 months to 30 Sept 2021 (unaudited) | Year ended 31 March 2022 (audited) |
| | £'000 | £'000 | £'000 |
| Revenue | 5,874 | 4,855 | 10,119 |
| Gross profit | 1,078 | 1,055 | 2,206 |
| Operating profit | 302 | 304 | 718 |
| Profit after tax | 244 | 247 | 579 |
| Earnings per share | 0.61p | 0.62p | 1.45p |
| Cash balances | 1,718 | 1,886 | 2,193 |
| Total dividend payable | 0.25p | 0.20p | 0.60p |
Dividend
The directors propose an interim dividend of 0.25p (2021: 0.20p). This will be paid on 20 December 2022 to shareholders on the register at 9 December 2022.
A copy of the interim results will be available from the Company's website: https://aquilaservicesgroup.co.uk/investor-information
This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").
For further information please visit www.aquilaservicesgroup.co.uk or contact:
Aquila Services Group plc
Claire Banks
Claire.banks@aquilaservicesgrp.co.uk
Group Finance Director and Company Secretary
Tel: 020 7934 0175
Beaumont Cornish Limited, Financial Adviser
roland@b-cornish.co.uk
Roland Cornish
Tel: 020 7628 3396
Chair's statement
Dear Shareholder,
I am pleased to present the half-yearly report and the interim results for the six months to 30 September 2022.
Aquila Services Group plc ("the Company") is the holding company for Altair Consultancy & Advisory Services Ltd ("Altair"), Aquila Treasury & Financial Solutions Ltd ("ATFS") and Oaks Consultancy Ltd ("Oaks") which form the Group ("the Group").
The Group is an independent consultancy specialising in the provision, financing, and management of affordable housing by housing associations, local authorities, government agencies and other non-profit organisations. The Group also provides high level business advice to the commercial property sector and support for organisations including multi-academy education trusts and sports foundations, working in communities to improve health and well-being opportunities.
The services provided by the Group are embedded in the activities which are or should be a necessary requirement of a responsible society. We assist our clients whether public, private or NGO's in assisting organisations and communities in the delivery of better housing options, education and funding opportunities for schools and charities through our professional expertise. The Group has a responsibility to ensure that our consultants and advisors provide high quality services that are founded in both experience, technical expertise and are value for money. These services embrace an agenda that includes contributions to addressing inequalities and reducing or reversing the impact of climate change.
The six months under review have overseen the transition from managing the business during a pandemic to taking advantage of our growth agenda. Increased demand has seen turnover grow by over 20% when comparing the current period to the same period last year. To support this expansion in certain areas of the business we have recruited a number of senior-level consultants with specific skills and to facilitate retention in a highly competitive marketplace have also reviewed and enhanced our reward packages. In addition to direct recruitment costs the period under review has seen investment in both induction and client relationship time to ensure the success of these new appointments.
Supplementing this expansion of senior appointments, we continue to invest in our staff, believing in our 'grow your own' programme with in-house and external training including offering management development courses for all our aspiring managers. We have successfully recruited to the second year of our graduate programme, which continues to be an essential part of our medium term strategy. Taken together this investment in the future has increased direct costs so that operating profit remains at the same level as the comparable period.
I am pleased to report that turnover for the six months ended 30 September 2022 was £5.9m (30 September 2021 £4.9m), earnings before tax were £302k (30 September 2021 £304k) and net current assets including cash of £1.7m continues to be strong at £2.7m (30 September 2021 £2.4m including cash of £1.9m).
The Directors have declared an interim dividend of 0.25p per share (interim 30 September 2021 0.20p per share), an increase of 25% which will be paid on 20 December 2022 to shareholders on the register at 9 December 2022. This increase reflects the progressive dividend strategy of the Group going forward.
The results for the half year are encouraging given the transition that was needed as the pandemic restrictions were lifted, moving delivery to reflect the requirements of clients which included more on-site working as well as continued virtual engagement. This had to be balanced with increased recruitment and training responsibility for members of the Executive team.
Not all the sectors we work in have opened up at the same pace. The housing and sporting sectors have moved ahead faster than education and international though both the latter are now showing early signs of recovery. Despite the travails of the world economy especially the tragedy of the Ukraine invasion and the confused domestic political, economic and fiscal environment we continue to see opportunities for growth in our business sectors. To take advantage of these we need to continue our investment in consultancy resources and into our development of digital platforms.
A successful future for the Group is achieved by ensuring that there is a continuing balance between investment in service provision, growing reserves to ensure the Group continues to be financially resilient and enhancing returns to shareholders such as through the progressive dividend policy. Current business trends give us confidence that we have the resources and strategies in place to continue to grow and meet all three objectives.
The Group works with organisations and agencies whose objectives are those of social responsibility in enhancing the life opportunities of their communities. For us to support our clients both efficiently and successfully we must share those objectives and understand the needs of both clients and their constituents. We want everybody who works for us, with us and those that support us, including our shareholders, to join our clients in being proud of what is being achieved.
Derek Joseph - Chair
25 November 2022
Management report
The Management of the Group are pleased to present their report for the period ended 30 September 2022.
Aquila at a Glance
Aquila Services Group plc ('the Company') is the holding company for Altair Consultancy and Advisory Services Ltd ('Altair'), Aquila Treasury and Financial Solutions Ltd ('ATFS') and Oaks Consultancy Ltd ('Oaks') which form the group ('the Group').
The Group continues to implement its business strategy to encompass all the professional consultancy services that the Group's client base demands. The Group now provides advice and support across the affordable housing, regeneration, sport, charity and education sectors. Its purpose is to assist organisations that benefit local communities such as housing associations, local authorities, government agencies, multi-academy trusts, charities, other non-profit organisations and those set up for community benefit, as well as providing related high-level business advice to the commercial property sector.
Business performance and position
Altair Consultancy and Advisory Services Ltd ("Altair")
Altair is a specialist management consultancy company that works with organisations that govern, manage, regulate or build housing. Operating within the UK and Europe, its international client base is increasing with continuing and new contracts in Africa and investment in expansion into Asia.
The services that Altair offers cover housing development and regeneration, property asset management, health and safety compliance and building safety advice, strategic financial advice, governance and risk management, executive and non-executive recruitment. Our digital, transformation and people services and our technical asset team are areas of continued significant investment and growth.
Clients contract with Altair on a fixed-fee basis, through retained contracts in our finance, governance and transformation business streams, and placements for members of the property team, and increasingly for our transformation team, at client sites.
The first half of the year has seen significant growth, specifically in our technology, transformation and people business stream where we have been successful in winning further large-scale projects with housing associations wishing to transform their businesses in a post-COVID world where different working practices have been developed and the infrastructure now needs to change to reflect this. We have continued to invest in this growing team, both with permanent and associate consultants.
We have further invested in our technical team, dealing with health and safety compliance, building safety and asset management. Our partnership with Cadline Ltd to develop a digital Building Information Management-aligned tool, DynamicAIM, has led to a number of pilot projects being implemented within our client base. All organisations need to hold digital records of their buildings over 18 metres as required by the Building Safety Act 2022 and indications are that this may be rolled out on a wider basis to smaller buildings in coming regulatory updates. We are leading the way in developing a digital tool and will continue to invest in this important area of building safety.
There continues to be demands for our property team, both assisting Registered Providers and Local Authorities in their development and regeneration programmes. Our digital appraisal model Podplan has had further success with circa 40 clients now using the model.
Our international work is returning and we have won new contracts in Burkina Faso and Rwanda. With the ongoing housing crisis in many developing countries, some caused by climate change, we continue to develop our products and services for these markets.
Governance and finance continue to be resilient and our teams are delivering work across the United Kingdom and Republic of Ireland. We have won the first merger advisory piece of work in the Republic of Ireland which will provide the template for future partnerships.
We expect to see a return on the investment in employees in the second half of the year. The uncertain economic and policy landscape will provide further opportunities for us to further support our clients across the entirety of their business.
Aquila Treasury and Financial Solutions Ltd ("ATFS")
ATFS is a specialist treasury management consultancy authorised and regulated by the Financial Conduct Authority that operates across the UK and Europe. It provides advice on treasury policy and strategy, debt and capital market finance, banking and card merchant services, value for money, and financial market information services to local authorities, charities, housing associations, education bodies, private sector housing providers and government bodies.
Work is delivered through fixed price contracts as retained general treasury advisers and information subscription agreements. Specific advisory project contracts are on a fixed fee basis, won through competitive procurement tenders, payable on agreed project milestones.
Following the retirement of the Chief Executive at the end of the financial year we have recruited a Corporate Finance Director to lead the team and further develop its products to reflect the changing landscape, including a new ESG offering.
The housing business in England continues to perform in-line with expectations and the next half should see further improvement in this position. Competitive pressures have slowed the work in Scotland and we are refining our offering to be able to ensure a stronger second half.
The debt advisory work within the education sector continues to be challenging and we have increased our marketing and relationship management across this area. The card services business has seen a successful transition following the retirement of the previous director and we continue to be a leader in this area.
Oaks Consultancy Limited ("Oaks")
Oaks is a specialist sports, charity, statutory and education consultancy operating within the UK and Europe with an increasing international presence. Oaks' clients include national and international sports teams and governing bodies, national and international charities, statutory organisations and local authorities, multi academy trusts and teaching school alliances, housing associations and corporate businesses.
Oaks provides consultancy advice and guidance on strategy and business planning, organisational and cultural change programmes, impact measurement, together with implementation support in relation to income generation and diversification. Contracts are
delivered through a mix of fixed-fee projects and retained contracts for general advisory services.
The sports and charities sector have proved to be resilient and provided Oaks with a strong start to the year. The Education sector continues to be challenging and the business has reviewed its offering in this area to reflect the changed economic environment. We anticipate this continuing into the second half. To counter-balance this the work in the charities sector has grown, providing strategic advice to national charities as well as fund-raising opportunities to smaller organisations.
Advice to the sports sector continues to be the central pillar of Oaks work. The UEFA contracts within Europe have continued and grown and being able to travel has meant that work can be delivered in-country. The large number of Sports Foundations have provided sustainable projects on and retainers for the delivery of their community projects plus assisting them in raising the necessary funds.
In addition to its current European profile, Oaks is delivering commissions in the USA through its Laureus relationship and is exploring further international opportunities.
Cross-group working continues, specifically within the housing sector and this will provide opportunities for further growth.
Investments
The Group continues to hold a 5.3% equity stake in AssetCore, a company building a financial debt management platform for the affordable housing sector.
Group-wide initiatives
Green Group
The objective of the Green Group is to reduce the Group's environmental impact, to maintain Carbon Neutral Plus status and develop further initiatives to mitigate the Group's impact on the environment.
EDI Group
The purpose of the Equality Diversity and Inclusion (EDI) Group is to drive the EDI agenda across subsidiaries including developing frameworks and raising awareness for the implementation of a range of initiatives to foster a culture of equality, diversity and inclusion at Aquila.
Further information about, and activities within the groups, is available on the website.
Outlook
The strong performance and investment in the first half has positioned the Group well for the second half of the year being reported.
Challenges remain with the uncertain economic outlook and the cost-of-living pressures which affects clients and colleagues alike. We have reviewed and invested in those areas that will help organisations through this period to ensure there is potential for continued growth across the Group.
The focus on technology, transformation, building safety and asset management in the housing sector should provide a significant return on the investment in the first half of the year. The changes in Government and the economic pressures, including the recent announcement in the Autumn Statement capping social housing rents at 7% (the previously agreed rent formula would have meant a rent increase of 11.1%), will mean significantly reduced income for these organisations. This will require changes to their operating model, development and investment programmes, and some will need to seek partnerships and mergers for their long-term future. The Group is positioned well to respond to these pressures.
There continues to be opportunities within the sports and charities sectors for raising funds through grant awards during this time of 'economic squeeze' which in turn provides the platform for further work on developing and changing strategies to ensure a robust future for our clients.
Our changed approach to delivering treasury advice into the housing and education sectors is leading to new contracts and the increasing importance of ESG across all sectors gives the Group the opportunity to provide advice to new and existing clients.
Going concern basis
The Board updates its three-year business plan annually. This includes a review of the Company's cash flows and other key financial ratios over the period. These metrics are subject to sensitivity analysis which involves flexing a number of the main assumptions underlying the forecast, both individually and in unison. Where appropriate, this analysis is carried out to evaluate the potential impact of the Company's principal risks. The three-year review also makes certain assumptions about the normal level of capital investment likely to occur and considers whether additional financing facilities will be required.
The Group does not have any bank debt and remains in a strong cash position with balances at the end of September 2022 at £1.7m and net current assets at £2.7m.
The Directors continue to review the forecasts on a monthly basis applying stress tests to the reforecasts to ensure viability of the outputs. The Group continue to monitor cash balances, debtors and cash generation on a daily basis. Based on the results of these analyses, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due in the next twelve months and over the three-year period of their assessment.
Risks and uncertainties
The key risks and uncertainties relating to the Group's operations remain largely consistent with those disclosed in the Group's Annual Report and Accounts for the year ended 31 March 2022. These are listed below:
· Financial risk
· Unfavourable economic conditions and/or changes to government policy
· Competition
· Staff skills, retention, recruitment and succession
· Data governance
The Group seeks to mitigate all these risks through ensuring that it monitors changes in statutory, regulatory and financial requirements and maintains good relationships with its clients, principal contacts within government, regulators and other key influencers within the sector. The Group is well placed to provide the full range of services needed by its clients as the external environment changes.
A detailed explanation of the risks relevant to the Group is on Page 22 of the Annual Report and Accounts for the year ended 31 March 2022 and is available on the Company's website at www.aquilaservicesgroup.co.uk.
Fiona Underwood - Executive Director
25 November 2022
Directors' report
Responsibility Statement
The Directors, whose names and functions are set out at the end of this report, are responsible for preparing the Unaudited Interim Condensed Consolidated Financial Statements in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority ("DTR") and with International Accounting Standard 34 on Interim Financial reporting ("IAS 34"). The Directors confirm that, to the best of their knowledge, this Unaudited Interim Condensed Consolidated Report has been prepared in accordance with UK-adopted International Accounting Standard 34. The interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8 namely:
§ an indication of key events occurred during the period and their impact on the Unaudited Interim Condensed Consolidated Financial Statements and a description of the principal risks and uncertainties for the second half of the financial year; and
§ material related party transactions that have taken place during the period and that have materially affected the financial position or the performance of the business during that period.
Remuneration of Directors and key management personnel
The remuneration of the key management personnel of the Group, including all directors of subsidiary companies, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
| | 6 months to 30 September 2022 (unaudited) | 6 months to 30 September 2021 (unaudited) | Year ended 31 March 2022 (audited) |
| | £'000 | £'000 | £'000 |
| | | | |
| Wages and salaries | 499 | 580 | 1,189 |
| Share-based payments | 5 | (7) | (7) |
| Post-retirement benefits | 24 | 24 | 49 |
| | | | |
| | 528 | 597 | 1,228 |
Claire Banks - Group Finance Director
25 November 2022
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2022
|
| Six months to 30 September 2022 | Six months to 30 September 2021 | Year ended 31 March 2022 |
| | (unaudited) | (unaudited) | (audited) |
| | £'000 | £'000 | £'000 |
| | | | |
| Revenue | 5,874 | 4,855 | 10,119 |
| | | | |
| Cost of sales | (4,796) | (3,800) | (7,913) |
| | | | |
| Gross profit | 1,078 | 1,055 | 2,206 |
|
| | | |
| Administrative expenses | (776) | (751) | (1,488) |
| | | | |
| Operating profit | 302 | 304 | 718 |
| | | | |
| Income tax expense | (58) | (57) | (139) |
| | | | |
| Profit for the period | 244 | 247 | 579 |
|
| | | |
|
| | | |
| Earnings per share attributable to owners of the parent | | | |
|
| | | |
| Weighted average number of shares: | '000 | '000 | '000 |
| - Basic | 39,962 | 39,962 | 39,962 |
| - Diluted | 41,016 | 41,153 | 41,153 |
| | | | |
| Basic earnings per share | 0.61p | 0.62p | 1.45p |
| Diluted earnings per share | 0.60p | 0.60p | 1.41p |
Condensed Consolidated Statement of Financial Position
As at 30 September 2022
|
| 30 September 2022 | 30 September 2021 | 31 March 2022 |
| | (unaudited) | (unaudited) | (audited) |
|
| £'000 | £'000 | £'000 |
| Non-current assets | | | |
| Goodwill | 3,317 | 3,317 | 3,317 |
| Right of use assets | 229 | 317 | 273 |
| Property, plant and equipment | 50 | 32 | 40 |
| Investments | 71 | 71 | 71 |
|
| | | |
|
| 3,667 | 3,737 | 3,701 |
|
| | | |
| Current assets | | | |
| Trade and other receivables | 2,574 | 2,110 | 2,593 |
| Cash and bank balances | 1,718 | 1,886 | 2,193 |
| | | | |
| | 4,292 | 3,996 | 4,786 |
|
| | | |
| Current liabilities | | | |
| Trade and other payables | 1,266 | 1,380 | 1,917 |
| Lease liabilities | 89 | 85 | 88 |
| Corporation tax | 222 | 157 | 144 |
|
| | | |
|
| 1,577 | 1,622 | 2,149 |
|
| | | |
| Net current assets | 2,715 | 2,374 | 2,637 |
|
|
| | |
| Non-current lease liabilities | 150 | 241 | 196 |
|
|
|
|
|
| Net assets | 6,232 | 5,870 | 6,142 |
|
| | | |
| Equity | | | |
|
| | | |
| Share capital | 1,998 | 1,998 | 1,998 |
| Share premium account | 1,712 | 1,712 | 1,712 |
| Merger reserve | 3,042 | 3,042 | 3,042 |
| Share-based payment reserve | 358 | 396 | 415 |
| Retained losses | (878) | (1,278) | (1,025) |
| | | | |
| Equity attributable to the owners of the parent |
6,232 |
5,870 | 6,142 |
|
| | | |
Condensed Consolidated Statement of Changes in Equity
| |
| Share |
| Share based |
|
|
| | Share | premium | Merger | payment | Retained | Total |
| | capital | account | reserve | reserve | losses | equity |
| | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
|
| | | | | | |
| Balance at 1 April 2021 | 1,998 | 1,712 | 3,042 | 580 | (1,537) | 5,795 |
| Transfer on reserves | - | - | - | (172) | 172 | - |
| Total comprehensive income | - | - | - | - | 247 | 247 |
| Share based payment charge | - | - | - | (12) | - | (12) |
| Dividend | - | - | - | - | (160) | (160) |
| Balance at 30 September 2021 | 1,998 | 1,712 | 3,042 | 396 | (1,278) | 5,870 |
| | | | | | | |
| Transfer on reserves | - | - | - | (1) | 1 | - |
| Total comprehensive income | - | - | - | - | 332 | 332 |
| Share based payment charge | - | - | - | 20 | - | 20 |
| Dividend | - | - | - | - | (80) | (80) |
| | | | | | | |
| Balance at 31 March 2022 | 1,998 | 1,712 | 3,042 | 415 | (1,025) | 6,142 |
| Transfer on reserves | - | - | - | (63) | 63 | - |
| Total comprehensive income | - | - | - | - | 244 | 244 |
| Share based payment charge | - | - | - | 6 | - | 6 |
| Dividend | - | - | - | - | (160) | (160) |
| Balance at 30 September 2022 | 1,998 | 1,712 | 3,042 | 358 | (878) | 6,232 |
Condensed Consolidated Statement of Cash Flows
for the six months ended 30 September 2022
|
| Six months to 30 September | Six months to 30 September | Year ended 31 March |
|
| 2022 | 2021 | 2022 |
| | (unaudited) | (unaudited) | (audited) |
|
| £'000 | £'000 | £'000 |
| Cash flow from operating activities | | | |
| Profit for the period | 244 | 247 | 579 |
| Income tax expense | 58 | 57 | 139 |
| Share based payment charge | 6 | (12) | 8 |
| Depreciation | 59 | 56 | 118 |
| Operating cash flows before movement in working capital | 367 | 348 | 844 |
| | | | |
| Decrease/(increase) in trade and other receivables | 19 | 163 | (320) |
| (Decrease) in trade and other payables | (652) | (549) | (12) |
| Cash generated by operations | (266) | (38) | 512 |
| | | | |
| Income taxes refunded/(paid) | 20 | 11 | (84) |
|
|
|
|
|
| Net cash (outflow)/inflow from operating activities | (246) | (27) | 428 |
|
| | | |
| Cash flows from investing activities | | | |
| Purchase of property, plant and equipment | (25) | (11) | (37) |
|
|
|
|
|
| Net cash (outflow) from investing activities | (25) | (11) | (37) |
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
| Lease liability payments | (44) | (43) | (85) |
| Dividends paid | (160) | (160) | (240) |
|
|
|
|
|
| Net cash (outflow) from financing activities | (204) | (203) | (325) |
|
|
|
|
|
| Net (decrease)/increase in cash and cash equivalents | (475) | (241) | 66 |
|
|
|
|
|
| Cash and cash equivalents at beginning of the period | 2,193 | 2,127 | 2,127 |
|
|
|
|
|
| Cash and cash equivalents at end of the period | 1,718 | 1,886 | 2,193 |
Notes to the Condensed set of Financial Statements
for the six months ended 30 September 2022
1. General information
The Company and its subsidiaries (together ''the Group'') are a major provider of consultancy services to organisations that develop, fund or manage affordable housing. It provides specialist housing, sport, education and treasury management consultancy services.
The Company is a public limited company domiciled in the United Kingdom and incorporated under registered number 08988813 in England and Wales. The Company's registered office is Tempus Wharf, 29a Bermondsey Wall West, London, SE16 4SA.
2. Basis of preparation
The Unaudited Condensed Consolidated Interim Financial Statements of the Group have been prepared on the basis of the accounting policies, presentation, methods of computation and estimation techniques used in the preparation of the audited accounts for the period ended 31 March 2022 and expected to be adopted in the financial information by the Company in preparing its annual report for the year ending 31 March 2023.
This Interim Consolidated Financial Information for the six months ended 30 September 2022 has been prepared in accordance with UK-adopted International Accounting Standard 34. This Interim Consolidated Financial Information is not the Group's statutory financial statements and should be read in conjunction with the annual financial statements for the year ended 31 March 2022, which were prepared in accordance with UK-adopted International Accounting Standards and have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis of matter without qualifying their report and did not contain statements under section 498(2) or (3) of the Companies Act 2006.
The Interim Consolidated Financial Information for the six months ended 30 September 2022 is unaudited. In the opinion of the Directors, the Interim Consolidated Financial Information presents fairly the financial position, and results from operations and cash flows for the period.
The Directors have made an assessment of the Group's ability to continue as a going concern and are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group, therefore, continues to adopt the going concern basis in preparing its consolidated financial statements.
The financial statements are presented in sterling, which is the Group's functional currency as the UK is the primary environment in which it operates.
3. Operating segments
The Group has two reportable segments being: consultancy, and treasury management services, the results of which are included within the financial information. In accordance with IFRS8 'Operating Segments', information on segment assets is not shown, as this is not provided to the chief operating decision-maker.
The principal activities of the Group are as follows:
Consultancy - a range of services to support the business needs of a diverse range of organisations across the housing (including housing associations and local authorities), education and sports sectors. Most consultancy projects run over one to two months and on-going business development is required to ensure a full pipeline of consultancy work for the employed team.
Treasury Management - a range of services providing treasury advice and fund-raising services to non-profit making organisations working in the affordable housing and education sectors. Within this segment of the business several client organisations enter fixed period retainers to ensure immediate call-off of the required services.
The accounting policies of the reportable segments are the same as the Group's accounting policies. Segment profit represents the profit earned by each segment, without allocation of central administration costs, including Directors' salaries, finance costs and income tax expense. This is the measure reported to the Group's executives for the purpose of resource allocation and assessment of segment performance.
|
| 6 months to 30 Sept 2022 | | 6 Months to 30 Sept 2021 |
|
| £'000 |
| £'000 |
| | | | |
| Revenue from Consultancy | 5,647 | | 4,566 |
| Revenue from Treasury Management | 227 | | 289 |
| | 5,874 | | 4,855 |
| | | | |
Within consultancy revenues, approximately 16% (2021: 8%) has arisen from the segment's largest customer; within treasury management 20% (2021: 27%).
Geographical information
Revenues from external customers, based on location of the customer, are shown below:
|
| 6 months to 30 Sept 2022 | | 6 months to 30 Sept 2021 |
|
| £'000 |
| £'000 |
| UK | 5,658 | | 4,652 |
| Europe | 193 | | 195 |
| Rest of World | 23 | | 8 |
| | 5,874 | | 4,855 |
4. Share capital
The Company has one class of share in issue being ordinary shares with a par value of 5p. Allotted, issued and called up ordinary shares of £0.05 each:
| | | Number
'000 | Amount called up and fully paid £'000 |
| As at 1 April 2021 | | 39,961 | 1,998 |
| | | | |
| As at 30 September 2021 | | 39,961 | 1,998 |
| | | | |
| As at 31 March 2022 | | 39,961 | 1,998 |
| | | | |
| As at 30 September 2022 |
| 39,961 | 1,998 |
5. Share-based payment transactions
The Company operates an Unapproved Scheme and an Enterprise Management Incentives Scheme. The total cost recognised in the period to 30 September 2022 arising from share-based payment transactions is £6k (the credit for the period ended 30 September 2021: £12k).
| Unapproved scheme | Number '000 | Weighted average exercise price |
|
| Number of options outstanding at 1 April 2022 and 30 September 2022 | 171 | £0.35 |
|
|
The exercise price of the options outstanding at 30 September 2022 is £0.35
|
| ||
| EMI scheme | Number '000 | Weighted average exercise price | |
| | | | |
| Number of options outstanding at 1 April 2022 | 1,474 | £0.05 | |
| Lapsed during period | (169) | £0.05 | |
| Granted during period | 931 | £0.26 | |
| Cancelled during period | (40) | £0.26 | |
| Number of options outstanding at 30 September 2022 | 2,196 | £0.14 | |
|
Number of options exercisable at 30 September 2022 | 1,305 | £0.05 | |
6. Going concern
The Group has sufficient financial resources to enable it to continue its operational activities for the foreseeable future. Accordingly, the Directors consider it appropriate to adopt the going concern basis in preparing these interim accounts.
7. Dividend
An interim dividend of 0.25p will be paid on 20 December 2022 to shareholders on the register at 9 December 2022 at a cost of £99,905.
8. Related party disclosures
Balances and transactions between the Group and other related parties are disclosed below:
During the 6 months to 30 September 2022, Derek Joseph, Chair, was paid £11.7k (6 months to September 2021: £11.5k) which includes £6.7k (6 months to September 2021: £6.5k) of consultancy fees in relation the Group's International business.
Richard Wollenberg, non-executive director, accrued fees of £2k (6 months to September 2021: £2k). At 30 September 2022, the balance owed to Richard Wollenberg for services as a non-executive director was £6k (6 months to September 2021: £2k).
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