TIDMARTA
RNS Number : 2497T
Artilium PLC
29 March 2016
29 March 2016
Artilium plc
("Artilium" or the "Company")
Half yearly results for the six months ended 31 December
2015
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
2015.
Financial Highlights
-- Revenue for the six months to 31 December 2015 was EUR 4.3
million (2014: EUR 4.1 million)
-- Adjusted EBITDA of EUR- 0.2 million (2014: EUR 0.1
million)
-- Net loss after tax of EUR 0.8 million (2014: net loss after
tax of EUR 0.2 million)
Commenting on the results, Jan-Paul Menke, Non-Executive
Chairman of Artilium said:
"In the first half of our fiscal year 2015 we focussed on
improving our retail offering and strengthening our platform for
value added cloud services. This resulted in sales growth and
significant growth of the users on the Artilium platforms to
approximately 1.5 million.
We acquired Talking Sense and *bliep to improve our retail
offering. These acquisitions are now fully integrated and are
contributing to sales growth and higher customer satisfaction.
We also acquired Comsys and Livecom which strengthened our
leading position in value added cloud telecom services for our
international clients. We already see international interest for
these combined services on the Artilium platform.
The telecommunication world has moved more towards innovative
software and we benefit from this as a leading provider of these
services. We are pursuing numerous sales opportunities and are
looking to convert these to our unique telecom software platform.
We have made the necessary investments on the technology side and
we are focussing increasingly on the commercial side.
The acquisitions and investments put us in a strong position to
add value to our customers on an international scale. We expect to
convert the strong order book into contracts resulting in
acceleration of sales growth. I would like to thank all employees
for their efforts in the last period."
For further information please contact:
Artilium PLC: +32 (0) 5023 0300
Bart Weijermars - Chief Executive
Officer
finnCap Ltd
Jonny Franklin-Adams / Scott
Mathieson (corporate finance)
Joanna Scott (corporate broking) +44 20 7220 0500
Chief Executive's Statement
Introduction
While the pace of growth has been somewhat slower than expected,
the Company is making steady progress and we are pleased to see
that the order book is considerably stronger than this time last
year. New opportunities in the machine to machine ("M2M") market
are being developed from which we expect further growth going
forward and we are investing in additional platform capabilities to
capture this growing market. The Directors remain confident of the
long term prospects of the Company. A number of high margin
projects for customers of Artilium have been delayed which has
impacted the Group's performance at both the revenue and EBITDA
levels. These projects are still expected to complete and so their
impact has been delayed rather than lost. In conjunction with this,
there have been delays to the start dates of a number of United
Telecom's new MVNOs. Again, these projects are contracted and
expected to complete in due course. The early stages of MVNOs are
lower margin than more established ones due to the cost that has to
be incurred in the early stages to secure customers to the
platform.
The six months to 31 December 2015 were an extremely busy period
for Artilium where several acquisitions have taken place that have
transformed the composition of the Group and created an
international footprint. To strengthen our retail offering we
acquired Talking Sense Networks (a Voice over Internet provider) as
well as *bliep (a Dutch MVNO focussed on the younger generation of
mobile users). Our platform and software business was strengthened
with the acquisition of Comsys (value added services in voice, IVR,
voicemail and call center solutions), which has given the Company
an international customer base in more than 15 countries and a
platform for further international growth. The Group is already
benefiting from the synergies of being able to offer a more
complete suite of solutions to (potential) customers. After the
period end we completed the acquisition of Livecom which
supplements the cloud based call center offering of Comsys.
In addition to these transactions a number of new MVNO and other
business agreements were signed and are in the process of
implementation. These include Taza Mobile and FMS Contact which
will launch services in the next two months. Management is strongly
focused on enlarging the customer base for managed services that
can be delivered with the ARTA software. Our strong order book will
continue to bring new business and contracts leading to further
revenue growth going forward.
Financial results
Reported revenue for the six months to 31 December 2015 of EUR
4.3 million (2014: EUR 4.1 million) was generated primarily from
maintenance and professional services rendered to existing
customers and by United Telecom fixed calling, broadband and mobile
services. The Group generated a gross profit of EUR 2.8 million or
65.3 per cent. of reported revenue (2014: EUR 3.0 million or 74.9
per cent. of reported revenue) and generated an adjusted EBITDA of
EUR -0.2 million (2014: EUR 0.1 million).
The Group reported a net loss after tax of EUR 0.8 million
(2014: net loss after tax of EUR 0.2 million).
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
2015 2014 2015
Unaudited Unaudited Audited
Notes EUR'000 EUR'000 EUR'000
---------------------------- ------ ------------ ------------ --------
Continuing Operations
Revenue 4,322 4,065 7,651
Cost of sales (1,497) (1,019) (1,882)
---------------------------- ------ ------------ ------------ --------
Gross profit 2,825 3,046 5,769
Other operating income 1 76 73
---------------------------- ------ ------------ ------------ --------
Administrative expenses
before redundancy costs
and compensation for loss
of office (3,633) (3,311) (6,234)
Restructuring costs (16) (118) (327)
---------------------------- ------ ------------ ------------ --------
Administrative expenses (3,649) (3,429) (6,561)
Operating loss (823) (307) (719)
Finance (costs)/income (104) 15 (49)
---------------------------- ------ ------------ ------------ --------
Loss before tax (927) (292) (768)
Tax credit 122 70 152
------ ------------ ------------ --------
Loss for the period from
continuing operations
attributable to owners
of the Company (805) (222) (616)
---------------------------- ------ ------------ ------------ --------
Earnings per share from
continuing operations
(cents) 4 (0.30) (0.10) (0.27)
---------------------------- ------ ------------ ------------ --------
A key performance indicator for the Group is adjusted EBITDA.
This was EUR -0.2 million for the six months to December 2015
(2014: EUR 0.1 million). The reconciliation of adjusted EBITDA to
the income statement is disclosed below.
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Reconciling table operating result-adjusted EBITDA
Unaudited Unaudited
EUR'000 EUR'000
---------------------------- ---------- ----------
Operating loss (823) (307)
Restructuring costs 16 118
Depreciation, amortization
and impairments 590 309
---------------------------- ---------- ----------
Adjusted EBITDA (217) 120
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
------------------------------------- ------------ ------------ --------
Loss for the period (805) (222) (616)
Other comprehensive income:
Items that may be subsequently
reclassified to profit or
loss
Exchange differences on translation
of foreign operations 26 (66) (253)
Total comprehensive income
for the period attributable
to owners of the Company (779) (288) (869)
-------------------------------------- ------------ ------------ --------
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
Unaudited Unaudited Audited
Notes EUR'000 EUR'000 EUR'000
------------------------------- ---------- ------------ ------------ --------
Non-current assets
Goodwill 2 16,754 13,726 13,726
Intangible assets 4,724 1,596 1,805
Property, plant and equipment 482 528 354
Deferred tax asset 560 270 270
22,520 16,120 16,155
------------------------------- ---------- ------------ ------------ --------
Current assets
Inventories 86 46 38
Trade and other receivables 5,749 8,246 5,263
Cash and cash equivalents 129 207 735
5,964 8,499 6,036
------------------------------- ---------- ------------ ------------ --------
Total assets 28,484 24,619 22,191
------------------------------- ---------- ------------ ------------ --------
Non-current liabilities
Deferred tax liabilities 1,088 415 495
Other borrowings 914 - -
Bank loans - - 60
2,002 415 555
------------------------------- ---------- ------------ ------------ --------
Current liabilities
Trade and other payables 6,771 9,161 6,577
Other borrowings 620 - -
Bank loans 312 215 255
------------------------------- ---------- ------------ ------------ --------
7,703 9,376 6,832
Total liabilities 9,705 9,791 7,387
------------------------------- ---------- ------------ ------------ --------
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Continued)
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
Unaudited Unaudited Audited
Notes EUR'000 EUR'000 EUR'000
------------------------------- ------ ------------ ------------ ---------
Equity attributable to owners
of the Company
Share capital 5 19,549 14,924 15,415
Share premium account 47,368 46,682 46,748
Merger relief reserve 1,488 1,488 1,488
Capital redemption reserve 6,503 6,503 6,503
Share based payment reserve - 3,246 -
Translation reserve (2,307) (2,146) (2,333)
Own shares (2,336) (2,336) (2,336)
Retained deficit (51,486) (53,533) (50,681)
Total equity 18,779 14,828 14,804
------------------------------- ------ ------------ ------------ ---------
Total liabilities and equity 28,484 24,619 22,191
------------------------------- ------ ------------ ------------ ---------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Merger Capital
Share premium relief redemption Translation Retained
capital account reserve reserve reserve Own shares deficit Total
EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000 EUR'000
---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Balance at 1
July
2015 15,415 46,748 1,488 6,503 - (2,333) (2,336) (50,681) 14,804
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Unaudited:
Nominal value
of shares
issued 4,134 - - - - - - 4,134
Premium
arising on
issue of
placement
shares - 620 - - - - - 620
Transaction
with owners 4,134 620 - - - - - 4,754
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Loss for the
period - - - - - - (805) (805)
Exchange
differences
on
translation
of
foreign
operations - - - - 26 - - 26
Total
comprehensive
income for
the period - - - 26 - (805) (779)
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Balance at 31
December
2015 19,549 47,368 1,488 6,503 (2,307) (2,336) (51,486) 18,779
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--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Share
Share Merger Capital based
Share premium relief redemption payment Translation Retained
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 743 96 - - - - - - 839
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
Loss for the
period - - - - - - - (222) (222)
Exchange
differences
on
translation
of
foreign
operations - - - - - (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
--------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
------------------------------------ ------------ ------------ --------
Net cash used in operating
activities (878) (679) (623)
------------------------------------ ------------ ------------ --------
Investing activities
Acquisition of subsidiaries
and businesses, net of cash
acquired - - (31)
Purchases of intangible fixed
assets (175) (34) (46)
Purchases of property, plant
and equipment - (329) (279)
Proceeds from disposal of
property, plant and equipment - - 97
Net cash used in investing
activities (175) (363) (259)
------------------------------------ ------------ ------------ --------
Financing activities
Proceeds on issue of shares - 641 921
Proceeds from borrowings 657 165 315
Interest paid (42) (21) (33)
Repayment of borrowings (168) (100) (150)
Net cash from financing activities 447 685 1,053
------------------------------------ ------------ ------------ --------
Net (decrease)/increase in
cash and cash equivalents (606) (357) 171
Cash and cash equivalents
at beginning of the period 735 564 564
Cash and cash equivalents
at the end of the period 129 207 735
------------------------------------ ------------ ------------ --------
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 EC4A 3AF.
The Group's principal place of business is Belgium and the
Netherlands.
2. Basis of preparation
These unaudited condensed consolidated half yearly financial
statements have been prepared under the historical cost convention
and in accordance with the AIM Rules for Companies. As permitted,
the Group has chosen not to adopt IAS 34 "Interim Financial
Statements" in preparing this interim financial information. The
unaudited condensed consolidated half yearly financial statements
should be read in conjunction with the annual financial statements
for the year ended 30 June 2015, which have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union.
The unaudited condensed consolidated half yearly financial
statements do not constitute statutory financial statements within
the meaning of the Companies Act 2006. They have been prepared on a
going concern basis in accordance with the recognition and
measurement criteria of IFRSs as adopted by the European Union.
Statutory financial statements for the year ended 30 June 2015 were
approved by the Board of Directors on 29 October 2015 and delivered
to the Registrar of Companies. The report of the auditor on those
financial statements was unqualified.
The same accounting policies, presentation and methods of
computation are followed in these unaudited condensed consolidated
half yearly financial statements as were applied in the preparation
of the Group's annual audited financial statements for the year
ended 30 June 2015.
The preparation of unaudited condensed consolidated half yearly
financial statements requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the end of the reporting period. Significant items subject to such
estimates are set out in the Group's Annual Report and Financial
Statements for the year ended 30 June 2015. Except as described
below, the nature and amounts of such estimates have not changed
significantly during the interim period.
The presentational currency of the Group is round thousand
Euros.
Basis of consolidation
The unaudited condensed consolidated half yearly financial
statements incorporate the financial statements of Artilium plc and
the entities controlled by the Company. Control is achieved when
the Group is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those
returns through its power over the investee.
All material intra-group transactions, balances, income and
expenses are eliminated on consolidation.
Going concern
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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 future revenue that will
be generated based on its pipeline, together with the renegotiation
of the repayment terms of certain borrowings. The Directors are
satisfied that the going concern basis 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 2015 and has not been updated at the interim
date.
The Group is in the process of finalising the valuation of the
deferred consideration and the purchase price allocation exercise
with regard to the business combinations undertaken during the
period ended 31 December 2015, in order to recognise separately
from goodwill the identifiable assets acquired, together with their
estimated useful economic lives. The valuation if the deferred
consideration and completion of the purchase price allocation
exercise will be finalised in due course and included in the
audited annual financial statements for the year ending 30 June
2016.
3. Earnings per share
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
-------------------------- ------------ ------------ ------------
Profits/(Losses)
Loss from continuing
operations attributable
to owners of the parent (805) (222) (616)
No. No. No.
-------------------------- ------------ ------------ ------------
Number of shares
Weighted average number
of ordinary shares for
the purposes of basic
and diluted earnings
/loss per share 267,306,414 223,638,295 228,658,004
-------------------------- ------------ ------------ ------------
Earnings/(Loss) per
share (0,30) (0.10) (0.27)
-------------------------- ------------ ------------ ------------
4. Share capital
6 months 6 months Year
ended ended ended
31 December 31 December 30 June
2015 2014 2015
Unaudited Unaudited Audited
EUR'000 EUR'000 EUR'000
----------------------------- ------------ ------------------- -------------------
Fully paid ordinary
shares:
Authorised:
300,000,002 (31 December
2014: 300,000,002)
ordinary shares of
5p each 18,523 18,523 18,523
------------------------------ ------------ ------------------- -------------------
Issued and fully paid:
296,972,644 (31 December
2014: 230,510,239)
ordinary shares of
5p each 19,549 14,924 15,415
------------------------------ ------------ ------------------- -------------------
Deferred ordinary shares:
Authorised:
900,447 (31 December
2014: 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
2015 2014 2015
No. '000 No. '000 No. '000
----------------------------- ------------ ------------------- -------------------
Issued and fully paid
ordinary shares:
Balance at beginning
of financial period 236,116 218,925 218,925
Issued during the period 60,857 11,585 17,191
Balance at end of financial
period 296,973 230,510 236,116
------------------------------ ------------ ------------------- -------------------
5. Post Balance Sheet Events
On 10 February 2016 the Company acquired the entire issued share
capital of Livecom International B.V as well as a 50 per cent.
stake in the Chinese JV of Livecom. The Company paid EUR450,000 in
cash; the balance was paid by the issue of 880,460 new ordinary
shares at 5.38 pence per share.
6. Further Copies
Copies of the half-yearly financial report are available from
the Company's registered office at 9-13 St. Andrew Street, London
EC4A 3AF 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 KMGZFDDFGVZM
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