TIDMWEST
RNS Number : 2385M
Western & Oriental plc
20 May 2010
Western & Oriental plc
Unaudited half year results for the six months ended 31 March 2010
20 May 2010
Western & Oriental plc, the specialist and luxury travel group, today announces
results for the six months ended 31 March 2010.
Highlights:
· While consumer confidence continues to show signs of improvement, it was
negatively impacted during the period under review by the poor UK economy,
airline industrial action and continuing riots in Thailand
· Post period end the Icelandic volcanic eruption also impacted the travel
industry
Financial
· Total booked revenue up 21.8% year-on-year to GBP27.4 million (31 March
2009: GBP22.5 million)
· Booked tour operations revenue up 29.3% to GBP21.6 million (31 March 2009:
GBP16.7 million)
· As anticipated total departure based revenue down 12.3% to GBP24.9 million
(31 March 2009: GBP28.4 million)
· W&O Travel achieved an increase in departure based revenue year-on-year of
1.2% to GBP16.7 million (31 March 2009: GBP16.5 million). Certain W&O Travel
products demonstrated growth well in excess of 50% year-on-year reflecting
improved marketing initiatives and consumer confidence
· As expected and previously announced, W&O Events departure based revenue
fell from GBP11.9 million to GBP8.2 million during the six month period due to
the effect of the global financial crisis on certain industry sectors
· At 31 March 2010 the value of forward sales was GBP21.6 million, up 14.3%
(31 March 2009: GBP18.9 million)
· Gross profit percentage declined from 16.8% at 31 March 2009 to 15.6% at 31
March 2010 due to lower Events sale volumes which carry higher gross profit
percentages
· Administrative expenses down 2.0% to GBP4.8 million (31 March 2009: GBP4.9
million)
· Loss before tax and separately disclosed items for the period was GBP0.9
million (31 March 2009: GBP0.2 million profit before tax and separately
disclosed items). The increased loss is attributable to the gross profit
associated with the fall in Events revenue (GBP0.7 million), the benefits in
2009 of certain forward exchange contracts taken out to protect Villa sales
(GBP0.2 million) and the effect of Easter falling into the second half of the
financial year in 2010
· Loss per share 0.44 pence (31 March 2009: 0.03 pence profit per share)
· Successful fund raising of GBP2.0 million completed on 31 March 2010
· The Group continues to be debt free. As at 31 March 2010 cash and cash
equivalents amounted to GBP6.0 million (31 March 2009: GBP5.7 million)
Operational
· Excellent performance from the W&O Travel team, reflects:
- improving consumer confidence level in the UK
- group's recent investments in sales and marketing to drive organic growth
· Single branding strategy as W&O Travel is now operational for all luxury
tour operating businesses
· Material increase in revenues from travel agents partners
· Brochure rationalisation under W&O travel banner
· Launch of the new W&O Travel website
· Consolidation of tour operating business to a country based model
· Creation of W&O Events one brand offering a full service proposition for
customers for the conference and incentive division which continues to win new
business clients as a result
Commenting on the results, David Howell, Chairman, said:
"Despite the
challenging economic environment, revenue for the first half of the financial
year, both on a booked and departed basis, was ahead of management's
expectations. Gross profit margins remain strong and overall costs are below
expectations. This combination delivers an acceptable result in light of the
prevailing market conditions for the seasonally weaker first half of the year.
While the board continues to remain cautious in relation to the UK economy
generally and recognising the effect of airline industrial action, the Icelandic
volcanic eruption, the riots in Thailand, and an improved forward order book,
the Board anticipates progress in the seasonally stronger second half of the
financial year compared to the first half. The group remains well placed to
take advantage of longer term improvements in the travel and events sectors."
Enquiries:
Western & Oriental plc
David Howell
020 7821 4078
Collins Stewart
Adrian Hadden
020 7523 8350
Temple Bar
Tom Allison
020 7002 1080
About Western & Oriental plc
Western & Oriental is a specialist and luxury travel group. The company was
admitted to trading on AIM under the ticker symbol WEST in March 2006. The
group acts as a tour operator, travel agent and conference and incentive
organiser offering a premium service for tailor-made and specialist packaged
holiday programmes to destinations worldwide.
For more information on the group and its individual luxury travel brand
websites, go to www.westernorientalplc.com.
Six months ended 31 March 2010
Chairman's statement
I am pleased to report on the progress the group has made during the past 6
months, especially in these difficult economic times, where we have largely held
gross profit margins and reduced on-going costs to deliver an acceptable result
for the seasonally weaker first half of the year.
Results
Booked based revenue for the 6 months totalled GBP27.4 million (31 March 2009:
GBP22.5 million), up 21.8% year-on-year. Tour operations booked based revenue
amounted to GBP21.6 million, up 29.3% year-on-year. Certain products, notably
Tropical Locations and Key2Holidays, demonstrated growth well in excess of 50.0%
year-on-year.
Departure based revenue for the period amounted to GBP24.9 million compared to
GBP28.4 million for the same period last year. W&O Travel revenue was up 1.2% at
GBP16.7 million (31 March 2009: GBP16.5 million) where the focus during this
period has been on generating new sales and the profitability of those sales in
a difficult market. The excellent performance from the W&O Travel team,
reflected improved consumer confidence levels in the UK, and the Group's recent
further investments in sales and marketing to drive organic growth for certain
products.
W&O Events' revenue has, as expected and previously announced, declined from
GBP11.9 million to GBP8.7 million on a like-for-like comparison. The Events
revenue decline is mainly driven by a fall in sales to customers in certain
industry sectors still affected by the global economic crisis, automotive and
financial, while sales in the key pharmaceutical sector remain strong.
Gross margins declined from 16.8% to 15.6% compared with last year. This decline
is mainly driven by lower Events sale volumes which carry higher gross profit
percentages than Travel. Management have continued to tightly control the
foreign exchange exposure that is created by international sales and the product
teams are ensuring that we receive good rates from our suppliers in these
difficult economic times.
Administrative expenses have reduced from GBP4.9 million for the 6 months ended
31 March 2009 to GBP4.8 million for the 6 months ended 31 March 2010. Central
costs have remained steady at GBP1.3 million. Further actions on reducing costs
were taken in February and March 2010. The benefits of those actions are not
fully reflected in this set of results and will be seen in the second half of
the financial year.
Separately disclosed items of GBP0.1 million reflect the costs incurred in
further reducing payroll costs in February and March 2010 (31 March 2009: GBP0.1
million).
The group loss before tax and separately disclosed items was GBP0.9m (31 March
2009: profit before tax of GBP0.2 million, compared to a loss of GBP2.0 million
in the same period in 2008). The increased loss is attributable to the gross
margin associated with the fall in Events revenue (GBP0.7 million), the benefits
in 2009 of certain forward exchange contracts taken out to protect Villa sales
(GBP0.2 million) and the effect of Easter falling into the second half of the
financial year in 2010. The Board believes this to be an acceptable result in
the seasonally weaker half year and in an uncertain economic environment.
Order book
Despite the current economic situation the forward order book has increased from
GBP18.9 million at 31 March 2009 to GBP21.6 million at 31 March 2010, an
increase of 14.3% year-on-year. This increase has mainly been in W&O Travel
where forward bookings have increased from an average of over 8 weeks forward to
approximately 12 weeks forward. The recent and continuing Icelandic volcanic
eruption, industrial action and the internal unrest in Thailand makes forward
planning more difficult to anticipate.
Integration
The integration of the twelve businesses acquired from March 2006 to December
2007 is now largely complete. The Travel businesses have mainly been re-branded
to a single brand strategy W&O Travel and the number of brochures has been
rationalised and refocused by destination. The W&O Events division is now fully
integrated and the marketing effort is concentrating on winning new business
clients.
Cash
As at 31 March 2010 cash and cash equivalents amounted to GBP6.0 million (31
March 2009: GBP5.7 million). In March 2010 GBP2.0 million of cash was raised in
share placing. Cash generation is affected by the revised booking patterns that
Travel customers have adopted which are longer than this time last year and
sales within the Events division having a different seasonal booking pattern to
the Travel division (high season Spring and Autumn).
Outlook
Despite the global economic recession and the weakness of Sterling against the
US Dollar and the Euro in the first half, the overall results are broadly in
line with expectations. These factors continue to have a drag on the overall
travel and events industries and we therefore approach the second half of the
2010 financial year with caution.
The recent volcanic eruptions in Iceland and subsequent blanket UK airspace
flight ban as well as airline industrial action and unrest in Thailand have had
an impact on a small number of our customers that were in resort. We continue to
clarify the costs of these events which will be shown as separately disclosed
items in the full year results.
A number of new W&O Events clients have been successfully won for projects
departing in the second half of the financial year.
Sales continue at an acceptable level in light of the prevailing market
conditions and whilst the market is very competitive, gross margins remain
within management expectations. Costs are being continually reviewed and are
expected to show significant reductions year-on-year. The Board anticipates
progress in the seasonally stronger second half of the financial year compared
with the first half. The group remains well placed to take advantage of longer
term improvements in the travel and events sectors.
David Howell
Chairman
20 May 2010
Condensed Consolidated Statement of Comprehensive Income
For the six months ended 31 March 2010
Unaudited
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| | Notes | Six months | | Six months | | Year ended |
| | | ended | | ended | | |
+ + +-------------+----------+-------------+----------+------------+
| | | 31 March | | 31 March | | 30 |
| | | | | | | September |
+ + +---------------------------+----------+-------------+----------+-------------+
| | | 2010 | | 2009 | | 2009 |
+ + +---------------------------+----------+-------------+----------+-------------+
| | | GBP000's | | GBP000's | | GBP000's |
+---------------------------+----------+---------------------------+----------+-------------+----------+-------------+
| Continuing operations | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Revenue | 2 | 24,897 | | 28,379 | | 57,644 |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Cost of sales | | (21,018) | | (23,606) | | (48,247) |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Gross profit | | 3,879 | | 4,773 | | 9,397 |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Administrative expenses | | (4,845) | | (4,946) | | (10,228) |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Operating loss | | (966) | | (173) | | (831) |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Analysed as: | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Underlying operating | | 461 | | 1,141 | | 3,086 |
| profit before central | | | | | | |
| costs | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Central costs | | (1,313) | | (1,350) | | (2,981) |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Underlying operating loss | 2 | (852) | | (209) | | 105 |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Separately disclosed | | (114) | | (111) | | (799) |
| items | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Profit on fair value of | | 11 | | 200 | | (2) |
| derivatives | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Amortisation of business | | - | | (27) | | (65) |
| combination intangibles | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Share based payments | | (11) | | (26) | | (70) |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| | | (966) | | (173) | | (831) |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Financial income | | 4 | | 70 | | 73 |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Financial expenses | | (58) | | (35) | | (27) |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Foreign exchange | | 21 | | 209 | | - |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Net finance (expense)/ | | (33) | | 244 | | 46 |
| income | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Profit/ (loss) before tax | | (999) | | 71 | | (785) |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Income tax | 4 | - | | 8 | | 30 |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| | | | | | | |
| | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| (Loss)/ profit for the | | (999) | | 79 | | (755) |
| period from continuing | | | | | | |
| operations | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Other Comprehensive | | - | | - | | - |
| income | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Profit/ (loss) for the | 2 | (999) | | 79 | | (755) |
| period attributable to | | | | | | |
| equity holders | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Profit/ (loss) per share | | | | | | |
| (pence) | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| From continuing and | | | | | | |
| discontinued operations | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Basic and diluted (pence) | 3 | (0.44)p | | 0.03p | | (0.33)p |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| From continuing | | | | | | |
| operations | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| | | | | | | |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
| Basic and diluted (pence) | | (0.44)p | | 0.03p | | (0.33)p |
+---------------------------+----------+-------------+----------+-------------+----------+------------+
Underlying profit or loss is defined as operating profit or loss before
amortisation of intangible assets, goodwill impairment, share based payments,
profits and losses on fair value of derivatives and separately disclosed items.
Central costs in continuing operations are defined by the Company as unallocated
corporate expenses.
Condensed Consolidated Statement of Financial Position
As at 31 March 2010
Unaudited
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| | Notes | As at | | As at | | As at |
+ + +-----------------------------------+----------+----------+----------+-----------+
| | | 31 March | | 31 March | | 30 |
| | | | | | | September |
+ + +-----------------------------------+----------+----------+----------+-----------+
| | | 2010 | | 2009 | | 2009 |
+ + +-----------------------------------+----------+----------+----------+-----------+
| | | GBP000's | | GBP000's | | GBP000's |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Assets | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Non-current assets | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Property, plant and equipment | | 861 | | 1,197 | | 998 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Goodwill | | 17,189 | | 17,197 | | 17,189 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Deferred tax assets | | 15 | | - | | 15 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Other intangible assets | | 97 | | 96 | | 94 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| | | 18,162 | | 18,490 | | 18,296 |
| | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Current assets | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Inventories | | 38 | | 66 | | 52 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Trade and other receivables | | 8,211 | | 9,430 | | 7,320 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Derivative financial instruments | | 104 | | 200 | | 93 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Cash and cash equivalents | | 6,017 | | 5,744 | | 5,144 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| | | 14,370 | | 15,440 | | 12,609 |
| | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Total assets | | 32,532 | | 33,930 | | 30,905 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Equity and liabilities | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Capital and reserves | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Issued capital | 5 | 1,799 | | 1,140 | | 1,140 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Share premium | 5 | 24,682 | | 23,367 | | 23,367 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Other reserves | 5 | 1,135 | | 1,111 | | 1,196 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Retained earnings | 5 | (9,901) | | (8,036) | | (8,974) |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Total equity attributable to | 5 | | | | | |
| equity holders of the parent | | 17,715 | | 17,582 | | 16,729 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Non-current liabilities | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Obligations under finance leases | | 30 | | 66 | | 48 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| | | 30 | | 66 | | 48 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Current liabilities | | | | | | |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Trade and other payables | | 14,744 | | 16,154 | | 14,058 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Obligations under finance leases | | 43 | | 102 | | 70 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Provisions | | - | | 26 | | - |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| | | 14,787 | | 16,282 | | 14,128 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Total liabilities | | 14,817 | | 16,348 | | 14,176 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
| Total equity and liabilities | | 32,532 | | 33,930 | | 30,905 |
+-----------------------------------+----------+-----------------------------------+----------+----------+----------+-----------+
Condensed Consolidated Cash Flow Statement
For the six months ended 31 March 2010
Unaudited
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| | | Six months | | Six months | | Year |
+ + +-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| | | ended | | ended | | ended |
+ + +-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| | | 31 March | | 31 March | | 30 |
| | | 2010 | | 2009 | | September |
| | | | | | | 2009 |
+ + +-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| | | GBP000's | | GBP000's | | GBP000's |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| (Loss)/ profit for the period | | (999) | | 79 | | (755) |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Adjustment for: | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Net finance cost/ (income) | | 33 | | (35) | | (46) |
| recognised in comprehensive | | | | | | |
| income statement | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Taxation income recognised in | | - | | (8) | | (30) |
| income statement | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| (Gain)/ loss on revaluation of | | | | | | |
| derivatives at fair value | | (11) | | (200) | | 2 |
| through comprehensive income | | | | | | |
| statement | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Loss on sale of property, plant | | - | | - | | 5 |
| and equipment | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Depreciation and amortisation | | 174 | | 176 | | 367 |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Net foreign exchange (gain) | | (32) | | (13) | | (63) |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Equity-settled share-based | | 11 | | 26 | | 70 |
| payment expenses | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Cash flow form operations | | (824) | | 25 | | (450) |
| before changes in working | | | | | | |
| capital and interest | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| | | (891) | | (2,839) | | (729) |
| (Increase) in trade and other | | | | | | |
| receivables | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Decrease in inventories | | 14 | | 17 | | 31 |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Increase/ (decrease) in trade | | 686 | | 474 | | (1,240) |
| and other payables | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| (Decrease) in provision | | - | | - | | (276) |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Cash flow from operations | | (1,015) | | (2,323) | | (2,664) |
| before interest | | | | | | |
| | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Interest paid | | (26) | | (35) | | (27) |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Interest received | | 4 | | 70 | | 77 |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Income taxes rebate | | - | | - | | 8 |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Cash flows from operating | | (1,037) | | (2,288) | | (2,606) |
| activities | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Investing activities | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Acquisition of property, plant | | (33) | | (292) | | (260) |
| and equipment | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Acquisition of intangible | | (7) | | - | | (27) |
| assets | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Acquisition of subsidiaries, | | - | | - | | (145) |
| net of cash acquired | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Investment in liquid funds | | (500) | | - | | (2,260) |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| | | (540) | | (292) | | (2,692) |
| Net cash used in investing | | | | | | |
| activities | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Financing activities | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Share placing cash funds raised | | 1,974 | | - | | - |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Finance lease repayments | | (45) | | (53) | | (76) |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
| Net cash from financing | | 1,929 | | (53) | | (76) |
| activities | | | | | | |
+---------------------------------+----------+-------------------------------------------+----------+---------------------------------+----------+-------------------------------+
Condensed Consolidated Cash Flow Statement (continued)
For the six months ended 31 March 2010
Unaudited
+---------------------------------+----------+------------+----------+------------+----------+----------+
| | | Six months | | Six months | | Year |
+ + +------------+----------+------------+----------+----------+
| | | ended | | ended | | ended |
+ + +---------------------------------+----------+------------+----------+------------+
| | | 31 March | | 31 March | | 30 |
| | | 2010 | | 2009 | | September |
| | | | | | | 2009 |
+ + +---------------------------------+----------+------------+----------+------------+
| | | GBP000's | | GBP000's | | GBP000's |
+---------------------------------+----------+---------------------------------+----------+------------+----------+------------+
| | | 352 | | (2,633) | | (5,374) |
| Net increase/ (decrease) in | | | | | | |
| cash and cash equivalents | | | | | | |
+---------------------------------+----------+------------+----------+------------+----------+----------+
| | | 5,144 | | 8,262 | | 8,262 |
| Cash and cash equivalents at | | | | | | |
| start of period | | | | | | |
+---------------------------------+----------+------------+----------+------------+----------+----------+
| | | 500 | | - | | 2,260 |
| Restricted cash balances | | | | | | |
+---------------------------------+----------+------------+----------+------------+----------+----------+
| | | 21 | | 115 | | (4) |
| Effect of foreign exchange on | | | | | | |
| cash held | | | | | | |
+---------------------------------+----------+------------+----------+------------+----------+----------+
| | | 6,017 | | 5,744 | | 5,144 |
| Cash and cash equivalents at | | | | | | |
| end of period | | | | | | |
+---------------------------------+----------+------------+----------+------------+----------+----------+
| | | 6,017 | | 5,744 | | 5,144 |
| Bank balances and cash | | | | | | |
+---------------------------------+----------+------------+----------+------------+----------+----------+
Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 March 2010
Unaudited
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | Share | | | |
| | | | | based | | | |
| | Share | Share | Merger | payment | Currency | Retained | |
| | capital | premium | reserve | reserve | reserve | earnings | Total |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 1 October | 1,140 | 23,367 | 826 | 370 | - | (8,974) | 16,729 |
| 2009 | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Shares issued during | 659 | 1,315 | - | - | - | - | 1,974 |
| the period | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Total recognised | - | - | - | - | - | (999) | (999) |
| comprehensive income | | | | | | | |
| for the period | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Transfer to retained | - | - | - | (72) | - | 72 | - |
| earnings | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Share based payment | - | - | - | 11 | - | - | 11 |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 31 March | 1,799 | 24,682 | 826 | 309 | - | (9,901) | 17,715 |
| 2010 | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | Share | | | |
| | | | | based | | | |
| | Share | Share | Merger | payment | Currency | Retained | |
| | capital | premium | reserve | reserve | reserve | earnings | Total |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 1 October | 1,140 | 23,367 | 826 | 300 | - | (8,156) | 17,477 |
| 2008 | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Total recognised | - | - | - | - | - | 79 | 79 |
| income for the | | | | | | | |
| period | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Share based payment | - | - | - | (15) | - | 41 | 26 |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 31 March | 1,140 | 23,367 | 826 | 285 | - | (8,036) | 17,582 |
| 2009 | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | Share | | | |
| | | | | based | | | |
| | Share | Share | Merger | payment | Currency | Retained | |
| | capital | premium | reserve | reserve | reserve | earnings | Total |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 1 October | 1,140 | 23,367 | 826 | 300 | - | (8,156) | 17,477 |
| 2008 | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Total recognised | | | | | | | |
| income for the | - | - | - | - | (63) | (755) | (818) |
| period | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
| Transfer to retained | - | - | - | - | 63 | (63) | - |
| earnings | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| | | | | | | | |
| Share based payment | - | - | - | 70 | - | - | 70 |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
| Balance at 30 | 1,140 | 23,367 | 826 | 370 | - | (8,974) | 16,729 |
| September 2009 | | | | | | | |
+----------------------+---------+---------+---------+---------+----------+----------+---------+
Notes to the Interim Report
1. Basis of preparation
Western & Oriental plc ("the company") is a company incorporated and domiciled
in the United Kingdom. The group financial statements consolidate those of the
company and its subsidiaries (together referred to as "the group").
The group condensed financial statements have been prepared and approved by the
directors in accordance with EU- adopted International Financial Reporting
Standards (Adopted IFRS).
The results for the six months to 31 March 2010, which are unaudited, have been
prepared on a basis consistent with the recognition and measurement principles
of EU-Adopted International Financial Reporting Standards (Adopted IFRS), which
is consistent with the accounting policies set out in the group's consolidated
financial statements for the year ended 30 September 2009.
These condensed consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standard (IFRS) IAS 34 Interim
financial reporting. The statements do not include all of the information
required for full annual financial statements.
The comparative figures for the financial year ended 30 September 2009 are
extracted from the company's statutory accounts for that financial year. Those
accounts have been reported on by the company's auditors and delivered to the
registrar of companies. The report of the auditors was (i) unqualified, (ii) did
not include a reference to any matters to which the auditors drew attention by
way of emphasis without qualifying their report, and (iii) did not contain a
statement under section 237(2) or (3) of the Companies Act 1985. There has been
no change in accounting policies since those set out the financial statements
for the year ended 30 September 2009.
Use of non-GAAP profit and loss measures
The group believes that underlying
operating profit or loss provides additional guidance to the statutory measures
on the performance of the business during the financial period. Underlying
profit or loss is defined as operating profit before amortisation of intangible
assets, goodwill impairment, share based payments, profits and losses on fair
value of derivatives and separately disclosed items. Underlying profit or loss
is not defined under Adopted IFRS and therefore may not be directly comparable
with other companies' adjusted profit measures. It is not intended to be a
substitute for or superior to Adopted IFRS measurements of profit.
The consolidated financial statements of the group as at and for the year ended
30 September 2009 are available on request from the company's registered office
at Welby House, 96 Wilton Road, London SW1V 1DW or at
www.westernorientalplc.com.
2.Segment information
The following is an analysis of the revenue and results for the period, analysed
by business segment, the group's primary basis of segmentation.
+----------------------------+------------+-------------+-------------+-----------+-----------+
| | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| | Six months | | Six months | | Year |
+ +------------+-------------+-------------+-----------+-----------+
| | ended | | ended | | ended |
+ +----------------------------+------------+-------------+-------------+-----------+
| | 31 March | | 31 March | | 30 |
| | 2010 | | 2009 | | September |
| | | | | | 2009 |
+ +----------------------------+------------+-------------+-------------+-----------+
| | GBP000's | | GBP000's | | GBP000's |
+----------------------------+----------------------------+------------+-------------+-------------+-----------+
| Revenue | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Tour operations | 16,681 | | 16,509 | | 36,273 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Conference and incentives | 8,216 | | 11,870 | | 21,371 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| | 24,897 | | 28,379 | | 57,644 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Analysed as: | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| - continuing operations | 24,897 | | 28,379 | | 57,644 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| | 24,897 | | 28,379 | | 57,644 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Underlying operating | | | | | |
| profit/ (loss) | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Continuing tour operations | (315) | | (222) | | 902 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Conference and incentives | 776 | | 1,363 | | 2,184 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Unallocated corporate | (1,313) | | (1,350) | | (2,981) |
| expenses | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| | (852) | | (209) | | 105 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Share based payments, | | | | | |
| impairment of goodwill, | | | | | |
| amortisation of | | | | | |
| intangibles, separately | | | | | |
| disclosed items, valuation | | | | | |
| of derivatives, financing | | | | | |
| & taxation | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Continuing tour operations | (27) | | 215 | | (496) |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Conference and incentives | (3) | | 4 | | (202) |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Unallocated corporate | (117) | | 69 | | (162) |
| expenses | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| | (147) | | 288 | | (860) |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Profit/ (Loss) | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Continuing tour operations | (342) | | (7) | | 406 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Conference and incentives | 773 | | 1,367 | | 1,982 |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Unallocated corporate | (1,430) | | (1,281) | | (3,143) |
| expenses | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| | (999) | | 79 | | (755) |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| Analysed as: | | | | | |
+----------------------------+------------+-------------+-------------+-----------+-----------+
| - continuing operations | (999) | | 79 | | (755) |
+----------------------------+------------+-------------+-------------+-----------+-----------+
Revenue reported above represents revenue generated from external
customers.
There were no inter-segment sales in the period (2009: GBPnil)
SEGMENT ASSETS AND LIABILITIES
+----------------------------+------------+----------+------------+----------+-----------+
| | Six months | | Six months | | Year |
+----------------------------+------------+----------+------------+----------+-----------+
| | ended | | ended | | ended |
+----------------------------+------------+----------+------------+----------+-----------+
| | 31 March | | 31 March | | 30 |
| | 2010 | | 2009 | | September |
| | | | | | 2009 |
+----------------------------+------------+----------+------------+----------+-----------+
| | GBP000's | | GBP000's | | GBP000's |
+----------------------------+------------+----------+------------+----------+-----------+
| Assets | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| Tour operations | 19,430 | | 15,992 | | 17,333 |
+----------------------------+------------+----------+------------+----------+-----------+
| Conference and incentives | 12,397 | | 16,854 | | 12,497 |
+----------------------------+------------+----------+------------+----------+-----------+
| Unallocated corporate | 705 | | 1,084 | | 1,075 |
| assets | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| | 32,532 | | 33,930 | | 30,905 |
+----------------------------+------------+----------+------------+----------+-----------+
| Liabilities | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| Tour operations | 9,455 | | 8,697 | | 7,262 |
+----------------------------+------------+----------+------------+----------+-----------+
| Conference and incentives | 4,101 | | 6,722 | | 5,550 |
+----------------------------+------------+----------+------------+----------+-----------+
| Unallocated corporate | 1,261 | | 929 | | 1,364 |
| liabilities | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| | 14,817 | | 16,348 | | 14,176 |
+----------------------------+------------+----------+------------+----------+-----------+
OTHER SEGMENT INFORMATION
+----------------------------+------------+----------+------------+----------+-----------+
| | Six months | | Six months | | Year |
+----------------------------+------------+----------+------------+----------+-----------+
| | ended | | ended | | ended |
+----------------------------+------------+----------+------------+----------+-----------+
| | 31 March | | 31 March | | 30 |
| | 2010 | | 2009 | | September |
| | | | | | 2009 |
+----------------------------+------------+----------+------------+----------+-----------+
| | GBP000's | | GBP000's | | GBP000's |
+----------------------------+------------+----------+------------+----------+-----------+
| Depreciation and | | | | | |
| amortisation | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| Tour operations | 75 | | 61 | | 159 |
+----------------------------+------------+----------+------------+----------+-----------+
| Conference and incentives | 5 | | 5 | | 32 |
+----------------------------+------------+----------+------------+----------+-----------+
| Unallocated corporate | 94 | | 83 | | 176 |
| expenses | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| | 174 | | 149 | | 367 |
+----------------------------+------------+----------+------------+----------+-----------+
| Additions to non-current | | | | | |
| assets | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| Tour operations | 23 | | 180 | | 241 |
+----------------------------+------------+----------+------------+----------+-----------+
| Conference and incentives | 1 | | 4 | | 4 |
+----------------------------+------------+----------+------------+----------+-----------+
| Unallocated corporate | 10 | | 108 | | 42 |
| assets | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| | 34 | | 292 | | 287 |
+----------------------------+------------+----------+------------+----------+-----------+
| Non-cash (income) / | | | | | |
| expenses other than | | | | | |
| depreciation and | | | | | |
| amortisation | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| Tour operations | - | | - | | (70) |
+----------------------------+------------+----------+------------+----------+-----------+
| Conference and incentives | (1) | | (14) | | - |
+----------------------------+------------+----------+------------+----------+-----------+
| Unallocated corporate | (11) | | (440) | | 17 |
| expenses | | | | | |
+----------------------------+------------+----------+------------+----------+-----------+
| | (12) | | (454) | | (53) |
+----------------------------+------------+----------+------------+----------+-----------+
Materially, the group has one geographical segment, being the UK.
3.Earnings per Share
+---------------------------+-------------+----------+-------------+----------+-------------+
| | Six months | | Six months | | Year |
| | ended | | ended | | ended |
| | 31 March | | 31 March | | 30 |
| | 2010 | | 2009 | | September |
| | | | | | 2009 |
+---------------------------+-------------+----------+-------------+----------+-------------+
| | | | | | |
+---------------------------+-------------+----------+-------------+----------+-------------+
| Profit/ (loss) for the | (999) | | 79 | | (755) |
| financial period | | | | | |
| (GBP000's) | | | | | |
+---------------------------+-------------+----------+-------------+----------+-------------+
| Weighted average number | 227,908,553 | | 227,908,553 | | 227,908,553 |
| of shares | | | | | |
+---------------------------+-------------+----------+-------------+----------+-------------+
| Basic and fully diluted | (0.44)p | | 0.03p | | (0.33)p |
| earnings per share | | | | | |
+---------------------------+-------------+----------+-------------+----------+-------------+
4.Income tax credit
+---------------------------+-------------+----------+-------------+----------+-----------+
| | Six months | | Six months | | Year |
| | ended | | ended | | ended |
| | 31 March | | 31 March | | 30 |
| | 2010 | | 2009 | | September |
| | | | | | 2009 |
+---------------------------+-------------+----------+-------------+----------+-----------+
| | | | | | |
+---------------------------+-------------+----------+-------------+----------+-----------+
| Deferred tax credit | - | | 8 | | 8 |
+---------------------------+-------------+----------+-------------+----------+-----------+
| Current tax - adjustment | - | | - | | 22 |
| in respect of prior | | | | | |
| periods | | | | | |
+---------------------------+-------------+----------+-------------+----------+-----------+
| Total tax credit for the | - | | 8 | | 30 |
| financial period | | | | | |
+---------------------------+-------------+----------+-------------+----------+-----------+
The deferred tax credit arises on the reversal of temporary differences between
the carrying value of intangible assets in the financial accounts and the
amounts used for taxation purposes.
5.Employee expenses
+----------------------------+-------------+----------+------------+----------+-----------+
| | Six months | | Six months | | Year |
| | ended | | ended | | ended |
| | 31 March | | 31 March | | 30 |
| | 2010 | | 2009 | | September |
| | | | | | 2009 |
+----------------------------+-------------+----------+------------+----------+-----------+
| | No. | | No. | | No. |
+----------------------------+-------------+----------+------------+----------+-----------+
| The average number of | | | | | |
| persons (including | | | | | |
| directors) employed by the | | | | | |
| group during the period | | | | | |
| was: | | | | | |
+----------------------------+-------------+----------+------------+----------+-----------+
| Sales and reservations | 94 | | 99 | | 92 |
+----------------------------+-------------+----------+------------+----------+-----------+
| Office and management | 63 | | 76 | | 57 |
+----------------------------+-------------+----------+------------+----------+-----------+
| | 157 | | 175 | | 149 |
+----------------------------+-------------+----------+------------+----------+-----------+
| | | | | | |
+----------------------------+-------------+----------+------------+----------+-----------+
| | 2010 | | 2009 | | 2009 |
+----------------------------+-------------+----------+------------+----------+-----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+----------------------------+-------------+----------+------------+----------+-----------+
| Employee expenses for the | | | | | |
| above persons: | | | | | |
+----------------------------+-------------+----------+------------+----------+-----------+
| Wages and salaries | 2,491 | | 2,729 | | 5,582 |
+----------------------------+-------------+----------+------------+----------+-----------+
| Social security costs | 265 | | 285 | | 581 |
+----------------------------+-------------+----------+------------+----------+-----------+
| Equity settled share-based | 11 | | 15 | | 70 |
| payment transactions | | | | | |
+----------------------------+-------------+----------+------------+----------+-----------+
| | 2,767 | | 3,029 | | 6,233 |
+----------------------------+-------------+----------+------------+----------+-----------+
No pension costs were incurred by the Group during the period (2009:
GBPnil).
6. Acquisitions
The group made no acquisitions during the six months to 31 March 2010.
7. Related party transactions
There were no related party transactions to report other than those
shown below.
Remuneration of key management personnel
The remuneration of the directors, who are the key management personnel of the
group, is set out below in aggregate for each of the categories specified in IAS
24 Related Party Disclosures.
+---------------------------+-------------+----------+-------------+----------+-----------+
| | Six months | | Six months | | Year |
| | ended | | ended | | ended |
| | 31 March | | 31 March | | 30 |
| | 2010 | | 2009 | | September |
| | | | | | 2009 |
+---------------------------+-------------+----------+-------------+----------+-----------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------+-------------+----------+-------------+----------+-----------+
| Short-term employee | 264 | | 284 | | 712 |
| benefits | | | | | |
+---------------------------+-------------+----------+-------------+----------+-----------+
| Share-based payments | 59 | | 59 | | 59 |
+---------------------------+-------------+----------+-------------+----------+-----------+
| | 323 | | 343 | | 771 |
+---------------------------+-------------+----------+-------------+----------+-----------+
8. Interim Report
This interim report was approved by the board on 20 May 2010.
A copy of the interim report will be posted shortly to those shareholders who
have requested paper copies. Other shareholders who have elected to receive
shareholders documents electronically will be notified that the report is
available on the company's website. Additional copies will be available via the
company's website, www.westernorientalplc.com or from the Company Secretary at
the company's registered office, Welby House, 96 Wilton Road, London SW1V 1DW.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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