Results round-up: JD Sports Fashion, Rockhopper Exploration, Immedia

JD Sports Fashion reported annual profits before tax up 56% and was reasonably confident of further growth this year in the face of likely inflationary headwinds on margins.

On revenue up 31% to £2.4bn in the 52 weeks to 28 January to £244.8m, profits before tax and exceptional items soared 56% to £244.8m. Adjusted earnings per share jumped 55% to 19.04p.

Statutory PBT rocketed 81% higher to £238m after lower levels of exceptional items last year, with reported EPS up 83% to 18.38p.

The FTSE 250 group, which had £213m net cash at year end, lifted the final dividend 4.8% to 1.30p to bring the total dividend to 1.55p, an increase of 4.7%.

The strong revenue growth was underpinned by a third consecutive year of double digit like-for-like growth in the core sports fashion segments, where gross margins widened by 40 basis points to 49.4%, with the European operations benefitting from a stronger euro on products sourced from the UK.

Across Europe, a net 54 stores were opened under the JD fascia, up from 38 the year before, with a net 314 added in the year when including acquisitions and openings under its other fascias including Size, Chausport in France and Sprinter in Spain.

Further afield two stores were opened in Malaysia in the year with a further store opened in the new financial year, while the first JD store in Australia is due to open shortly.

As for the outdoor fascias, UK-based Blacks and Millets delivered a first operating profit of £1.2m as gross margin increased by 40bps to 43.7% and management have high hopes for the 58 stores that are part of its £112m cash acquisition of Go Outdoors in November, although it is currently under review by the Competition and Markets Authority.

Over the last three years, group profits have improved by more than 190%, pointed out executive chairman Peter Cowgill, which he said provided a strong platform for further development.

Rockhopper Exploration

Rockhopper Exploration increased its output in 2016 as it continued to progress on developing Sea Lion, its main project offshore the Falkland Islands while increasing its footprint in the Mediterranean.

The outfit increased its economic production to 1,350 barrels of oil equivalent per day last year, the company said.

Together with cost savings achieved throughout the year that, the company said, would help secure the long-term sustainability of Rockhopper as it shifted its focus in 2017 to obtaining the necessary financing to progress with Sea Lion, alongside its partner Premier.

Management also expressed its ambition of continuing to grow in the Greater Mediterranean region following the purchase of the non-operated production and exploration assets of Beach Energy

In parallel, in 2016 it consolidated its North Falkland Basin acreage position via its merger with Falkland Oil&Gas.

Rockhopper also noted the improved business climate in the Falklands region following the election of the new Argentine president.

Cash operating costs in the Mediterranean were reduced to $14 per barrel of oil equivalent in 2016, while the 'break-even' price of oil for its project Sea Lion project, offshore Falklands, was put at $45 a barrel.

During the reporting period, Front End Engineering Design contracts for Phase 1 of Sea Lion were also awarded and an independent resource audit confirmed Sea Lion had 517mm barrels of gross (2C) oil resources.

At year-end, the firm's liquidity position stood at £64.8m ($81m) and the company was debt free.

Furthermore, existing production was expected to largely cover general and administrative costs going forward as the outfit continued to make progress on bringing its Sea Lion field online.

Immedia

Shares in Immedia are down more than 7% after it reversed to a full-year pre-tax loss of £184,372, from a previous profit of £5379, but was upbeat on the benefits of its AVC Media Enterprises acquisition last year.

"Since the year end we have already seen the anticipated benefits of the AVC acquisition coming through, both in terms of revenue from its own clients and additional services," it said.

"We expect that to continue and develop over the course of the year," said Immedia, which posted revenue of £2.61m for the year, from £2.37m previously.

Immedia added that a reduction in full-year EBITDA was due to the addition of overhead costs from AVC, prior to merger related synergies being achieved and the lag in realisation of contribution from its new client wins after the expiry of some other contracts.

"The year has also brought some frustrations as contracts have expired in the normal course of events; substantial new contracts have been won, but with some delays to planning and expected delivery of revenues," the company said.

"However, these new business wins now demonstrate that our revenue and profit growth difficulties are behind us."

The company also confirmed it had appointed Simon Leathers as a non-executive director with immediate effect.