TIDMARTA
RNS Number : 7725I
Artilium PLC
30 March 2015
30 March 2015
Artilium plc
("Artilium" or the "Company")
Half yearly results for the six months ended 31 December
2014
Artilium plc (LSE/AIM: ARTA), the AIM quoted provider of
innovative telecommunication software and solutions, announces its
unaudited half yearly results for the six months ended 31 December
2014.
Financial Highlights
-- Revenue for the six months to 31 December 2014 was EUR 4.1
million (2013: EUR 5.5 million)
-- Adjusted EBITDA of EUR 0.1 million (2013: EUR 0.8
million)
-- Net loss after tax of EUR 0.2 million (2013: net profit of
EUR 0.3million)
Commenting on the results, Jan-Paul Menke, Non-Executive
Chairman of Artilium said:
"2014 was a challenging year for Artilium as it transitioned
from being a project focused to a subscriber focused company whilst
at the same time facing fierce pricing pressure from mobile
operators. I am pleased to see that the transformation, led by our
new CEO Bart Weijermars, is well underway and that we have already
seen some rewards with a record amount of requests from clients for
our services and products. We significantly increased investment in
2014 in order to improve our software offering and we are now
capable of offering it in a flexible cloud solutions format. We
believe that these developments put us in a strong position to add
value to our customers on an international scale and for the
prospect of revenue and cash flow growth over the next twelve
months. I would like to thank all the Artilium employees for their
efforts the last 6 months. I would also take the opportunity to
thank our shareholders for their patience and continuing support.
We are more focussed than ever on delivering value to them.
For further information please contact:
Artilium PLC: +32 (0)50230300
Jan-Paul Menke - Non-Executive
Director, Chairman
Bart Weijermars - CEO - Executive
Director
Bote De Vries - Non- Executive
Director
FinnCap Ltd (nominated advisor)
Stuart Andrews / Scott Mathieson +44 20 7220 0500
Chief Executive's Statement
Introduction
The first half of this financial year has seen the first
evidence of the changes and adjustments that the company had to
make in order to stay competitive in the Belgian marketplace with
its United Telecom business together with the changing business
model in the company software development business.
The company's main line of business is delivering our real time
software to mobile operators. We have concentrated on expanding and
further professionalising the release delivery process in this part
of the business. We are transforming the business model from a
project based revenue model to a license model based on the number
of subscribers. This has been done in light of the increased
pressure of mobile operators on project expenses and the upside
potential of a subscriber based model. The reduction of revenue
that we have seen in the first half of the year is a direct result
of a number of larger one-off implementation and hardware projects
finished in the last financial year. The core revenues from
licenses and maintenance contracts have remained stable. The focus
going forward will be on filling the capacity of the platform
already in place and at the same time expanding the offering
internationally. A number of interesting prospects give us the
comfort that we can grow our business in this area.
The lower margin traffic re-sales of mobile, fixed and broadband
business has experienced very challenging conditions especially in
the mobile domain. Mobile operators in Belgium have lowered their
prices significantly and this has had an impact on the United
Telecom revenue. As a result United Telecom has lowered its prices
to resellers and MVNO's which resulted in a decrease in revenue.
This step has been taken in order to secure the future business and
to enable the MVNO's of United Telecom to develop a profitable
business so that they can start growing again. The economic
benefits of the contracts which we have already announced have not
been realised in the first half of the financial year as most
implementations have only been finalised since the period end. We
expect this effect to start showing in the second half of the
year.
Having taken these important steps, and accepted their
inevitable short term impact on the top-line, we believe that their
implementation will help us to develop a healthy business in
Belgium and beyond.
Financial results
Reported revenue for the six months to 31 December 2014 of
EUR4.1million (2013: EUR5.5 million) was generated primarily from
maintenance and professional services rendered to existing
customers and by United Telecom fixed calling, broadband and mobile
services. The Company generated a gross profit of EUR3.0 million or
74.9% of reported revenue (2013: EUR4.0 million or 71.9% of
reported revenue) and generated an adjusted EBITDA of EUR0.1
million (2013: EUR0.8 million).
The company generated a net loss after tax of EUR0.2 million
(2013: net profit after tax of EUR 0.3 million).
Outlook
Management is focused on enlarging the customer base for managed
services that we can deliver with the ARTA software. As mobile
operators become more focussed on cost savings, we believe that the
ARTA platform, with its high performance and low cost IT engine, is
a unique asset and management anticipate that current discussions
with prospects should lead to further revenue growth going
forward.
With respect to United Telecom we are looking to expand its
position with selected additions and new distribution channels in
order to restore revenue levels.
Forward Looking Statements
This report contains certain "forward looking" statements and
information relating to the Company that are based on the beliefs
of the Company's management as well as assumptions made by and
information currently available to the Company's management. When
used in this report, the words "anticipate", "believe", "estimate",
"expect", and "intend" and words or phrases of similar import, as
they relate to the Company or its subsidiaries or Company
management, are intended to identify forward-looking statements.
Such statements reflect the current risks, uncertainties and
assumptions related to certain factors including, without
limitation, competitive factors, general economic conditions,
customer relations, relationships with vendors, borrowing
arrangements, interest rates, foreign exchange rates, litigation,
governmental regulation and supervision, seasonality, product
introductions and acceptance, technological change, changes in
industry practices, one-time events and other factors described
herein and in other announcements made by the Company. Based upon
changing conditions, should any one or more of these risks or
uncertainties materialise, or should any underlying assumptions
prove incorrect, actual results may vary materially from those
described herein as anticipated, believed, estimated, expected or
intended. The Company does not intend to update these
forward-looking statements.
* * * * *
CONDENSED CONSOLIDATED INCOME STATEMENT
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2014 2013 2014
Unaudited Unaudited Audited
Notes EUR'000 EUR'000 EUR'000
--------------------------------------- ------ ------------ ------------ --------
Continuing Operations
Revenue 4.065 5.502 10.150
Cost of sales (1019) (1.542) (2.292)
--------------------------------------- ------ ------------ ------------ --------
Gross profit 3.046 3.960 7.858
Other operating income 76 191 183
Administrative expenses (3.311) (3.631) (7.319)
Restructuring costs (118) (324) (644)
Operating (loss)/Profit (307) 196 78
Financial result 15 59 (60)
--------------------------------------- ------ ------------ ------------ --------
(Loss)/Profit before tax (292) 255 18
Tax credit 70 80 152
------ ------------ ------------ --------
(Loss)/Profit for the period
from continuing operations (222) 335 170
--------------------------------------- ------ ------------ ------------ --------
Basic and diluted (loss)/ earnings
per share from continuing operations
(pence) 4 (0,10) 0,16 0,08
--------------------------------------- ------ ------------ ------------ --------
A Key performance indicator for the company is adjusted EBITDA.
This was EUR 0.1 million for the 6 months to December 2014
(2013:EUR 0.8 million). The reconciliation of adjusted EBITDA to
the income statement in disclosed below.
Reconciling table operating result-adjusted EBITDA
Unaudited
EUR'000
---------------------------------------------- ----------
Operating (Loss)/Profit (307)
Restructuring costs 118
Depreciations, amortizations and impairments 309
----------------------------------------------- ----------
Adjusted EBITDA 120
CONDENSED CONSOLIDATED INCOME STATEMENT OF COMPREHENSIVE
INCOME
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2014 2013 2014
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
------------------------------------- ------------ ------------ --------
(Loss)/ Profit for the period (222) 335 170
Other comprehensive (loss)/income:
Exchange differences on translation
of foreign operations (66) (103) (261)
Total comprehensive (loss)/income
for the period (288) 232 (91)
-------------------------------------- ------------ ------------ --------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2014 2013 2013
Unaudited Unaudited Audited
Notes EUR'000 EUR'000 EUR'000
--------------------------------------- ------------ ------------ --------------------
Non-current assets
Goodwill 13.726 13.726 13.726
Intangible assets 1.596 2.076 1.823
Property, plant and equipment 528 282 240
Deferred tax asset 270 270 270
16.120 16.354 16.059
--------------------------------------- ------------ ------------ --------------------
Current assets
Inventories 46 27 43
Trade and other receivables 8.246 2.551 2.348
Other deposit - 420 -
Cash and cash equivalents 207 923 564
8.499 3.921 2.955
--------------------------------------- ------------ ------------ --------------------
Total assets 24.619 20.275 19.014
---------------------------------------- ------------ ------------ --------------------
Non-current liabilities
Deferred tax liabilities 415 579 497
415 579 497
--------------------------------------- ------------ ------------ --------------------
Current liabilities
Trade and other payables 9.161 4.526 7.428
Bank loans 215 150 150
Borrowings - 420 -
Total liabilities 9.791 5.675 4.737
---------------------------------------- ------------ ------------ --------------------
Equity
Share capital 5 14.924 14.181 14.181
Share premium account 46.682 46.586 46.586
Merger relief reserve 1.488 1.488 1.488
Capital redemption reserve 5 6.503 6.503 6.503
Share based payment reserve 3.246 3.246 3.246
Translation reserve (2.146) (1.922) (2.080)
Own shares (2.336) (2.336) (2.336)
Retained deficit (53.533) (53.146) (53.311)
Total equity 14.828 14.600 14.277
------------------------------ --------- --------- ---------
Total liabilities and equity 24.619 20.275 19.014
------------------------------ --------- --------- ---------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Merger Capital Share based
Share premium relief redemption payment Translation Retained
Share capital account reserve reserve reserve reserve Own shares deficit Total
Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000
---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Balance at 1
July 2014 14.181 46.586 1.488 6.503 3.246 (2.080) (2.336) (53.311) 14.277
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Unaudited:
Nominal value
of shares
issued 743 - - - - - - - 743
Premium
arising on
issue
of placement
shares - 96 - - - - - - 96
Transaction
with owners 14.924 46.682 1.488 6.503 3.246 (2.080) (2.336) (53.311) 15.116
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Profit for the
period - - - - - - - (222) (222)
Exchange
differences
on
translation
of foreign
exchange - - - - - (66) - - (66)
Total
comprehensive
income
for the
period - - - - (66) - (222) (288)
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Balance at 31
December 2014 14.924 46.682 1.488 6.503 3.246 (2.146) (2.336) (53.533) 14.828
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Merger Capital Share based
Share premium relief redemption payment Translation Retained
Share capital account reserve reserve reserve reserve Own shares deficit Total
Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000 Eur'000
---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Balance at 1
July 2013 14.060 46.501 1.488 6.503 3.246 (1.819) (2.336) (53.481) 14.162
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Unaudited:
Nominal value
of shares
issued 121 - - - - - - - 121
Premium
arising on
issue
of placement
shares - 85 - - - - - - 85
Transaction
with owners 14.181 46.586 1.488 6.503 3.246 (1.819) (2.336) (53.481) 14.368
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Profit for the
period - - - - - - - 335 335
Exchange
differences
on
translation
of foreign
exchange - - - - - (103) - - (103)
Total
comprehensive
income
for the
period - - - - - (103) - 335 232
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Balance at 31
December 2013 14.181 46.586 1.488 6.503 3.246 (1.922) (2.336) (53.146) 14.600
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2014 2013 2013
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
---------------------------------------- ------------ ------------ --------
Net cash used in operating activities (679) (1.287) (1.665)
Investing activities
Purchases of intangible fixed assets (34) - -
Purchases of property, plant and
equipment (329) (216) (207)
Proceeds from disposal of property,
plant and equipment - - 9
Net cash used in investing activities (363) (216) (198)
---------------------------------------- ------------ ------------ --------
Financing activities
Proceeds on issue of shares 641 - -
New borrowings received 165 200 150
Interest paid (21) (44) (43)
Borrowings/loans repayment/inflows (100) (192) (142)
Net cash from financing activities 685 (36) (35)
---------------------------------------- ------------ ------------ --------
Net (decrease)/increase in cash and
cash equivalents (357) (1.539) (1.898)
Cash and cash equivalents at beginning
of the period 564 2.462 2.462
Cash and cash equivalents at the
end of the period 207 923 2.462
---------------------------------------- ------------ ------------ --------
NOTES TO THE CONDENSED CONSOLIDATED HALF YEARLY FINANCIAL
STATEMENTS
1. Nature of operations and general information
Artilium plc and its subsidiaries (together 'the group')
operates in the business to business communications sector
delivering innovative software solutions which layer seamlessly
over disparate fixed, mobile and IP networks to enable the
deployment of converged services and applications. Artilium plc is
incorporated and domiciled in the United Kingdom. The address of
its registered office is 9-13 St. Andrew Street, London EC4A3AF,
The Group's principal place of business is Belgium.
The Group's condensed consolidated half yearly financial
statements are presented in round thousand Euro's because that is
the principal currency the Group operates in. These condensed
consolidated half yearly financial statements have been approved
for issue by the directors on 30 March 2015. The financial
information for the year ended 30 June 2014 set out in this half
yearly report does not constitute statutory accounts as defined in
Section 434 of the Companies Act 2006. The Group's statutory
financial statements for the year ended 30 June 2014 have been
filed with the Registrar of Companies.
2. Basis of preparation
These unaudited condensed consolidated half yearly financial
statements have been prepared in accordance with IAS 34 - Half
yearly Financial Reporting. They do not include all of the
information required for full annual financial statements, and
should be read in conjunction with the 30 June 2014 annual
consolidated financial statements. These condensed consolidated
half yearly financial statements have been prepared in accordance
with the accounting policies adopted in the last financial
statements for the year ended 30 June 2014.
Basis of consolidation
The unaudited consolidated financial statements incorporate the
financial statements of Artilium plc ('the Group') and the entities
controlled by the Company (together 'the Group'). Control is
achieved where the Company has the power to govern the financial
and operating policies of an investee entity so as to obtain
benefits from its activities.
All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
The accounting policies have been applied consistently
throughout the group for the purposes of preparation of these
condensed consolidated half yearly financial statements.
Going concern
The directors have adopted the going concern basis in preparing
the condensed consolidated half yearly financial statements, having
carried out a going concern review. In carrying out the review the
Directors have made assumptions about the revenue that will be
generated to April 2016 based on its pipeline. These forecasts are
considered in conjunction for the directors to satisfy themselves
that the going concern assumption is appropriate
Intangibles
IAS 36 requires the Directors to consider intangible assets and
goodwill for impairment on an annual basis, the last review was
performed at 30 June 2014. This has not been updated at the interim
date. The review of the carrying value of the Group's intangible
assets and goodwill at 30 June 2014 was carried out and the assets
were found to be unimpaired. The directors do not consider that any
indicators of impairment exist at 31 December 2014.
4. Earnings per share
The share options in issue do not have a dilutive effect due to
the result for the period being a loss, and as a result diluted
loss per share is the same as basic earnings per share.
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2014 2013 2014
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
-------------------------------------- ------------ ------------ ------------
Profits/(Losses)
Profits/(Losses) from continuing
operations for the purposes
of basic and diluted profit/(loss)
per share being net profits/(losses
)attributable to owners of
the parents (222) 335 170
No. No. No.
-------------------------------------- ------------ ------------ ------------
Number of shares
Weighted average number of 223.638.295 218.498.704 218.608.630
ordinary shares for the purposes
of basic and diluted earnings
/loss per share
-------------------------------------- ------------ ------------ ------------
Earnings/(Loss) per share (0,10) 0,15 0,08
-------------------------------------- ------------ ------------ ------------
5. Share capital
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2014 2013 2014
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
----------------------------------- ------------ ------------ ---------
Fully paid ordinary shares:
Authorised:
300,000,002 (31 December 2013:
300,000,002) ordinary shares
of 5p each 18.523 18.523 18.523
------------------------------------ ------------ ------------ ---------
Issued and fully paid:
230,510,239 (31 December 2013:
218,615,041) ordinary shares
of 5p each 14.924 14.181 14.181
------------------------------------ ------------ ------------ ---------
Deferred ordinary shares:
Authorised:
900,447 (31 December 2013:
900,447) deferred ordinary
shares of GBP4.99 each 6.503 6.503 6.503
------------------------------------ ------------ ------------ ---------
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
No. '000 No. '000 No. '000
----------------------------------- ------------ ------------ ---------
Fully paid ordinary shares:
Balance at beginning of financial
year 218.925 216.474 216.474
Issued during the year 11.585 2.141 2.451
Issued and fully paid: 230.510 218.615 218.925
------------------------------------ ------------ ------------ ---------
6. Status of half yearly financial statements
The condensed set of half yearly financial statements for the
six months ended 31 December 2014 is unaudited and does not
constitute statutory accounts as defined by The Companies Act 2006.
The comparative figures for the period to 31 December 2013 are also
unaudited. The comparative figures for the year to 30 June 2014 are
extracted from the statutory accounts to that date. A copy of those
statutory accounts has been filed with the Registrar of
Companies.
7. Further Copies
Copies of the half-yearly financial report are available from
the Company's registered office at 9-13 St. Andrew Street, London
EC4A3AF and on the Company's website www.artilium.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GMGZFLNKGKZM
Artilium (LSE:ARTA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Artilium (LSE:ARTA)
Historical Stock Chart
From Sep 2023 to Sep 2024
