TIDMACC
RNS Number : 2630P
Access Intelligence PLC
23 March 2009
?
23 MARCH 2009
ACCESS INTELLIGENCE PLC
("Access Intelligence plc" or "the Group")
(Software and computer services business)
PRELIMINARY RESULTS
FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2008
Highlights
Ø Appointment of Michael Jackson as Executive Chairman and David Lowe as
Non-executive Director in November 2008
Ø Share subscription raising GBP1.3m in October 2008
Ø Re-focus of the Group on Software as a Service and significant cost reduction
program implemented
Ø Acquisition of Solcara Limited and Ray Jackson appointed to the Board in
November 2008
Ø Group Turnover of GBP4.0m (2007: GBP3.9m)
Ø Net cash and bank balances of GBP717,000 (2007: GBP833,000)
For further information:
+-------------------------------------------------------------------+------------------------------+
| Access Intelligence plc | |
+-------------------------------------------------------------------+------------------------------+
| Michael Jackson (Executive Chairman) | 020 7831 5088 |
+-------------------------------------------------------------------+------------------------------+
| Jeremy Hamer (Non Executive Director) | 07977 234614 |
+-------------------------------------------------------------------+------------------------------+
| Blue Oar Securities | 020 7448 4400 |
+-------------------------------------------------------------------+------------------------------+
| Shane Gallwey | |
+-------------------------------------------------------------------+------------------------------+
ACCESS INTELLIGENCE PLC
("Access Intelligence plc" or "the Group")
(Software and computer services business)
PRELIMINARY RESULTS
FOR THE FINANCIAL YEAR ENDED 30 NOVEMBER 2008
CHAIRMAN'S STATEMENT
We are pleased to present our results for the year to 30 November 2008. This has
been a year of change for Access Intelligence. In the fourth quarter new equity
was raised, new Directors appointed and two Executive Directors left the
Company. The new Board has refined the strategy; there has also been a major
initiative on sales and, a tough review of costs and a strengthening of the
Balance Sheet.
Results
Group turnover from continuing activities was GBP3,967,000 (2007: GBP3,897,000)
The operating loss before impairment on intangible assets and non-recurring
expenses was GBP655,000 (2007: profit GBP44,000) and the loss attributable to
shareholders was GBP5,876,000 (2007: GBP92,000).The basic loss per share from
continuing operations is 3.59p (2007: 0.04p - loss). The Group has net cash and
bank balances of GBP717,000 (2007: GBP833,000).
The group acquired Solcara Ltd in November 2008 for GBP750,000 in cash from
ArgentVive Plc, who had acquired Solcara in December 2007 for GBP4.5m. This
represented a historic revenue multiple of 0.5x. Its founder Ray Jackson joins
the Board as a Non-Executive Director.
The Directors are not recommending the payment of an ordinary dividend
Strategy
At the interims the Group announced that it was intending to sell all its
non-software as a service (SaaS) businesses including Willow Starcom, Wired-Gov
and The Marketing Guild. Despite considerable interest and after the completion
of extensive due diligence, only the sale of The Marketing Guild was completed.
The new Board has decided not to sell Willow Starcom and Wired-Gov. These two
companies are profitable with strong recurring revenues, and Willow Starcom's
balance sheet reflects its enviable status as a strong cash generator.
The Board intends to develop Access Intelligence further, with an emphasis on
recurring revenues. Our product portfolio offers a strong bedrock on which to
build a dynamic and competitive Software-as-a-Service proposition, providing us
with sustainable profitability and long term value.
Operations
Software as a Service
Due North has started to see the rewards of its investment in sales pipeline
management and marketing at the beginning of the year. Recurring revenues have
reached GBP55,000 per month and it continues to make steady progress in the
local authority and emergency service sector in particular. The year has also
seen a major upgrading of our core product suite. The company is profitable and
with lower costs in 2009 should deliver increased profits.
Since its acquisition in November 2008, Solcara's performance has been closely
monitored and its cost base considerably reduced. We are pleased to report that
the business is performing in line with expectations and that its experienced
management team is proving to be an asset to the Group. Recurring revenues have
reached GBP70,000 per month with a continued emphasis on SaaS delivery. The
Company offers a diverse product portfolio with a blue chip client base covering
the legal sector, industrial companies, Government Departments, Local
Authorities and Police Forces. We are enthusiastic about the potential customer
cross-selling opportunities between Solcara and the other Group companies,
particularly Due North and Wired Gov.
MS2M failed to make any major new sales during 2008 although a significant
opportunity remained tantalisingly close. Selling into the banking sector over
the last 12 months has been very difficult, however increased regulation in the
financial services sector for compliance should provide further opportunities.
MS2M has recently been rewarded with a major deal at the Royal Bank of Scotland.
I would expect this to have a favourable effect on cash flow by the end of Q209.
Data Management
Willow Starcom had a difficult year. It failed in the first half of the year to
deliver sales growth, despite considerable investment in the sales team. The due
diligence process through the summer was a distraction. It is to the credit of
the management team that the change of policy has lead to a refocused sales
effort and reductions in costs. The focus is now on outsourced IT maintenance
and support services and recurring revenues now exceed GBP110,000 per month. The
business returned to profit in the 4th quarter and this has been maintained in
the current year.
Other
Wired-Gov made a small profit in 2008 although sales fell slightly as
sponsorship proved a difficult sell. Costs have been considerably reduced, and
the Company has the potential to add value to other Group subsidiaries, in
particular the newly acquired Solcara.
Directors and Staff
I would like to thank Brendan Austin, Colin Davies and Ian Savage for their
individual contributions to the Group over many years. They have left the Board
during the last year.
The staff have endured many changes during the year. I would like to thank them
for their resilience and resolve all of which have added to my optimism for the
future.
Outlook
Access Intelligence Plc is in a stronger position than it was 12 months ago; new
equity investment, a strengthened Board and a refocused strategy are combining
with an increased enthusiasm of the executives of the business. Costs are under
close control and will remain so. The Company is profitable and we have
significant opportunities available to us during the year.
On behalf of Access Intelligence's Board and management, I would like to thank
you for your ongoing support.
Michael Jackson
Chairman
CONSOLIDATED INCOME STATEMENT
YEAR ENDED 30 NOVEMBER 2008
+------------------------------------------+------+--------------+--------------+
| | | | As restated |
+------------------------------------------+------+--------------+--------------+
| |Note | 2008 | 2007 |
+------------------------------------------+------+--------------+--------------+
| | | GBP'000 | GBP'000 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Turnover - continuing operations | 2 | 3,967 | 3,897 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Cost of sales | | (2,146) | (1,869) |
+------------------------------------------+------+--------------+--------------+
| | | ______ | ______ |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Gross profit | | 1,821 | 2,028 |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Administrative expenses | | (2,476) | (1,984) |
+------------------------------------------+------+--------------+--------------+
| | | ______ | ______ |
+------------------------------------------+------+--------------+--------------+
| | | (655) | 44 |
+------------------------------------------+------+--------------+--------------+
| Impairment of goodwill | 11 | (2,950) | - |
+------------------------------------------+------+--------------+--------------+
| Impairment of capitalised development | 11 | (532) | - |
| costs | | | |
+------------------------------------------+------+--------------+--------------+
| Non - recurring expenses | 3 | (256) | (126) |
+------------------------------------------+------+--------------+--------------+
| | | ______ | ______ |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Operating loss | 4 | (4,393) | (82) |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Financial income | 5 | 17 | 19 |
+------------------------------------------+------+--------------+--------------+
| Financial expense | 6 | (7) | (12) |
+------------------------------------------+------+--------------+--------------+
| | | ______ | ______ |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Loss before taxation | | (4,383) | (75) |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Income tax credit | | 258 | 31 |
+------------------------------------------+------+--------------+--------------+
| | | ______ | ______ |
+------------------------------------------+------+--------------+--------------+
| Loss for the year from continuing | | (4,125) | (44) |
| operations | | | |
+------------------------------------------+------+--------------+--------------+
| Loss for the year from discontinued | 7 | (1,751) | (48) |
| operations net of income tax credit | | | |
+------------------------------------------+------+--------------+--------------+
| | | ______ | ______ |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Loss for the year all attributable to | | (5,876) | (92) |
| equity shareholders of the company | | | |
+------------------------------------------+------+--------------+--------------+
| | | ______ | ______ |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Earnings per share | | | |
+------------------------------------------+------+--------------+--------------+
| Basic loss per share | 9 | (5.11)p | (0.08)p |
+------------------------------------------+------+--------------+--------------+
| Diluted loss per share | 9 | (4.05)p | (0.08)p |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Continuing operations | | | |
+------------------------------------------+------+--------------+--------------+
| Basic loss per share | 9 | (3.59)p | (0.04)p |
+------------------------------------------+------+--------------+--------------+
| Diluted loss per share | 9 | (2.84)p | (0.04)p |
+------------------------------------------+------+--------------+--------------+
| | | | |
+------------------------------------------+------+--------------+--------------+
| Discontinued operations | | | |
+------------------------------------------+------+--------------+--------------+
| Basic loss per share | 9 | (1.52)p | (0.04)p |
+------------------------------------------+------+--------------+--------------+
| Diluted loss per share | 9 | (1.21)p | (0.04)p |
+------------------------------------------+------+--------------+--------------+
The group has no recognised gains or losses other than the results for the year
as set out above.
CONSOLIDATED BALANCE SHEET
YEAR ENDED 30 NOVEMBER 2008
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | | | As |
| | | | | | restated |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | 2008 | | 2007 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | Note | | GBP'000 | | GBP'000 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Non-current assets | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Property, plant & | 12 | | 192 | | 198 |
| equipment | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Intangible assets | 11 | | 2,988 | | 7,046 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Deferred income tax | | | 197 | | - |
| assets | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Total non-current assets | | | 3,377 | | 7,244 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ---------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Current assets | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Inventories | 13 | | 268 | | 351 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Trade and other | 14 | | 1,455 | | 1,156 |
| receivables | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Cash and cash | | | 763 | | 872 |
| equivalents | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | 2,486 | | 2,379 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Total assets | | | 5,863 | | 9,623 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Current liabilities | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Other interest bearing | | | 2 | | 6 |
| loans and borrowings | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Trade and other payables | | | 614 | | 360 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Accruals and deferred | | | 1,577 | | 915 |
| income | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Other financial | | | - | | 31 |
| liabilities | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Other liabilities | | | 258 | | 270 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Total current | | | 2,451 | | 1,582 |
| liabilities | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Non - current | | | | | |
| liabilities | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Other interest bearing | | | 52 | | 2 |
| loans and borrowings | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ------------------ |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Total non - current | | | 52 | | 2 |
| liabilities | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Total liabilities | | | 2,503 | | 1,584 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Net Assets | | | 3,360 | | 8,039 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ______ | | ______ |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Equity | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Share capital | 15 | | 779 | | 549 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Share premium account | 16 | | 8,873 | | 7,906 |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Capital redemption | 16 | | 191 | | 160 |
| reserve | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Profit and loss account | 16 | | (6,483) | | (576) |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ----------------- | | ----------------- |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| Total equity | 17 | | 3,360 | | 8,039 |
| attributable to equity | | | | | |
| shareholders | | | | | |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
| | | | ______ | | ______ |
+--------------------------+---------+----------+-------------------+-----------+--------------------+
CONSOLIDATED CASHFLOW STATEMENT
YEAR ENDED 30 NOVEMBER 2008
+--------------------------------------------------------+----------+------------------+------------------+
| | | | As restated |
+--------------------------------------------------------+----------+------------------+------------------+
| | | 2008 | 2007 |
+--------------------------------------------------------+----------+------------------+------------------+
| | Note | GBP'000 | GBP'000 |
+--------------------------------------------------------+----------+------------------+------------------+
| | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Cash flows from continuing operating activities | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Loss for the year attributable to equity shareholders | 16 | (5,876) | (44) |
| of the parent | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Adjusted for: | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Disposal of subsidiary | | 1,751 | - |
+--------------------------------------------------------+----------+------------------+------------------+
| Depreciation | | 81 | 65 |
+--------------------------------------------------------+----------+------------------+------------------+
| Amortisation of intangible assets | | - | 53 |
+--------------------------------------------------------+----------+------------------+------------------+
| Impairment of intangible assets | | 3,482 | - |
+--------------------------------------------------------+----------+------------------+------------------+
| Financial income | | (17) | (19) |
+--------------------------------------------------------+----------+------------------+------------------+
| Financial expense | | 7 | 12 |
+--------------------------------------------------------+----------+------------------+------------------+
| Taxation | | (258) | (31) |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
| Operating (loss)/profit before changes in working | | (830) | 36 |
| capital and provisions | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Decrease in trade and other receivables | | 145 | 53 |
+--------------------------------------------------------+----------+------------------+------------------+
| Decrease/(increase) in inventories | | 83 | (34) |
+--------------------------------------------------------+----------+------------------+------------------+
| Increase in trade and other payables | | 168 | 403 |
+--------------------------------------------------------+----------+------------------+------------------+
| Increase in provisions | | 27 | 30 |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
| Cash (absorbed)/generated from the continuing | | (407) | 488 |
| operations | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Tax received/(paid) | | 51 | (263) |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
| Net cash (outflow)/ inflow from continuing activities | | (356) | 225 |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
| | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Cash flows from investing in continuing activities | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Interest received | | 17 | 19 |
+--------------------------------------------------------+----------+------------------+------------------+
| Expenditure on business acquisitions | | (830) | (4) |
+--------------------------------------------------------+----------+------------------+------------------+
| Cash acquired with subsidiary | | 15 | - |
+--------------------------------------------------------+----------+------------------+------------------+
| Acquisition of property, plant and equipment | | (67) | (106) |
+--------------------------------------------------------+----------+------------------+------------------+
| Acquisition of intangible assets | | - | (97) |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
| Net cash outflow from investing in continuing | | (865) | (188) |
| activities | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
| | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Cash flows from financing continuing activities | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Interest paid | | (7) | (12) |
+--------------------------------------------------------+----------+------------------+------------------+
| Issue of equity share capital | | 1,265 | - |
+--------------------------------------------------------+----------+------------------+------------------+
| Cost of share issues | | (68) | - |
+--------------------------------------------------------+----------+------------------+------------------+
| Repayment of borrowings | | (45) | (143) |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
| Net cash inflow/ (outflow) from financing continuing | | 1,145 | (155) |
| activities | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
| | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Net decrease in cash and cash equivalents | 18 | (76) | (118) |
+--------------------------------------------------------+----------+------------------+------------------+
| Cash from discontinued operations | 7 | (33) | (12) |
+--------------------------------------------------------+----------+------------------+------------------+
| Opening cash and cash equivalents | | 872 | 1,002 |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
| | | | |
+--------------------------------------------------------+----------+------------------+------------------+
| Closing cash and cash equivalents | | 763 | 872 |
+--------------------------------------------------------+----------+------------------+------------------+
| | | _____ | _____ |
+--------------------------------------------------------+----------+------------------+------------------+
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 30 NOVEMBER 2008
1 ACCOUNTING POLICIES
The following accounting policies represent the group's revised policies under
IFRS which have been adopted by the group in its financial statements for the
year ended 30 November 2008.
The accounting policies below have been applied consistently to both periods.
The comparative income statement has been re-presented as if an operation
discounted during the current year had been discontinued from the start of the
comparative year.
IFRS transitional arrangements
Access Intelligence plc reported under UK GAAP in its previous financial
statements for the year ended 30 November 2007. A reconciliation of profits as
reported under UK GAAP for the year ended 30 November 2007 to the revised
profits and net assets reported under IFRS as at that date was provided in the
company's interim announcement issued in August 2008. Copies of this interim
statement are available on the company's website.
Basis of consolidation
The group financial statements comprise the financial statements of the company
and all of its subsidiary undertakings made up to the financial year end.
Subsidiaries are entities controlled by the group. Control exists when the group
has the power, directly or indirectly, to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. In assessing
control, potential voting rights that are currently exercisable or convertible
are taken into account. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control commences until
the date that control ceases.
The results of subsidiary undertakings acquired or disposed of in the year are
included in the Group Income Statement from the effective date of acquisition or
to the effective date of disposal. Accounting policies are consistently applied
throughout the group. Inter-company balances and transactions have been
eliminated. Material profits from inter company sales, to the extent that they
are not yet realised outside the group, have also been eliminated.
2 TURNOVER
The turnover, operating loss and net assets of the group are attributable to one
class of business. The group operates from one geographical segment with all of
its turnover being within the United Kingdom.
Segment reporting
Segment information is presented in respect of the group's business segments
which are based upon the group's management and internal business reporting.
Inter-segment pricing is determined on an arm's length basis.
Segment results, assets and liabilities include items directly attributable to a
segment as well as those that can be allocated on a reasonable basis.
Unallocated items comprise mainly head office expenses.
Segment capital expenditure is the total cost incurred in the year to acquire
property, plant and equipment and intangibles, other than goodwill.
Business segments
The group comprises the following main business segments:
· Software as a service
· Data management
· Other
The segment information for the year ended 30 November 2008 is as follows:-
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| | Software as a | Data | Other | Head | Total |
| | service | management | segment | office | |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| | GBP'000 | GBP'000 | GBP'000 | | GBP'000 |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| Total segment revenue | 1,419 | 2,347 | 201 | - | 3,967 |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| | ---------------------- | ---------------------- | ---------------- | ---------- | ------------- |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| Segment result | (172) | (85) | 29 | (427) | (655) |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| Non-recurring expenses | (7) | - | - | (249) | (256) |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| Impairment of capitalise | | | | | |
| development costs | (347) | (67) | (118) | - | (532) |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| Impairment of goodwill | (1,958) | (630) | (362) | - | (2,950) |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| Net finance costs | 2 | 8 | (2) | 2 | 10 |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| Income tax credit | 95 | 28 | 15 | 120 | 258 |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| | | | | | |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| Total assets | 1,848 | 1,111 | 72 | 5,647 | 5,863 |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| | ---------------------- | ---------------------- | ---------------- | ---------- | ------------- |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| | | | | | |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| Total liabilities | 1,770 | 984 | 123 | 835 | 2,503 |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
| | ---------------------- | ---------------------- | ---------------- | ---------- | ------------- |
+------------------------------+------------------------+------------------------+------------------+------------+---------------+
The segment information for the year ended 30 November 2007 is as follows:-
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| | Software as a | Data | Other | Head | Total |
| | service | management | segment | office | |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| | GBP'000 | GBP'000 | GBP'000 | | GBP'000 |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| Total segment revenue | 1,347 | 2,338 | 212 | - | 3,897 |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| | ---------------------- | ---------------------- | ---------------- | ---------- | ------------ |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| Segment result | (51) | 41 | (23) | 77 | 44 |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| Non-recurring expenses | (30) | (96) | - | - | (126) |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| Unallocated expenses | | | | | |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| Net finance costs | 11 | 4 | (2) | (6) | 7 |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| Income tax credit | 24 | 16 | - | (9) | 31 |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| | | | | | |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| Total assets | 1,400 | 1,786 | 98 | 9,220 | 9,623 |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| | ---------------------- | ---------------------- | ---------------- | ---------- | ------------ |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| | | | | | |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| Total liabilities | 724 | 1,574 | 191 | 592 | 1,584 |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
| | ---------------------- | ---------------------- | ---------------- | ---------- | ------------ |
+-------------------------------+------------------------+------------------------+------------------+------------+--------------+
3 NON - RECURRING COSTS
The group has made provision for non-recurring costs as follows:
+-----------------------------------------------+-------------+------------+
| | 2008 | 2007 |
+-----------------------------------------------+-------------+------------+
| | GBP'000 | GBP'000 |
+-----------------------------------------------+-------------+------------+
| | | |
+-----------------------------------------------+-------------+------------+
| Closure of offices and staff redundancy | 57 | 126 |
+-----------------------------------------------+-------------+------------+
| Costs of failed sale | 44 | - |
+-----------------------------------------------+-------------+------------+
| Costs of reorganising Board and head office | 155 | - |
+-----------------------------------------------+-------------+------------+
| | ----------- | ---------- |
+-----------------------------------------------+-------------+------------+
| | 256 | 126 |
+-----------------------------------------------+-------------+------------+
| | ____ | ____ |
+-----------------------------------------------+-------------+------------+
4 OPERATING LOSS
Operating loss is stated after charging:-
+-----------------------------------------------+------------+------------+
| | | As |
| | | restated |
+-----------------------------------------------+------------+------------+
| | 2008 | 2007 |
+-----------------------------------------------+------------+------------+
| | GBP'000 | GBP'000 |
+-----------------------------------------------+------------+------------+
| | | |
+-----------------------------------------------+------------+------------+
| Depreciation of tangible fixed assets | 81 | 65 |
+-----------------------------------------------+------------+------------+
| Impairment of goodwill | 2,950 | - |
+-----------------------------------------------+------------+------------+
| Impairment and amortisation of development | 532 | 56 |
| costs | | |
+-----------------------------------------------+------------+------------+
| Operating lease charges - land and buildings | 95 | 100 |
+-----------------------------------------------+------------+------------+
| - others | 1 | 5 |
+-----------------------------------------------+------------+------------+
| Auditors' remuneration | 32 | 36 |
+-----------------------------------------------+------------+------------+
| | _____ | _____ |
+-----------------------------------------------+------------+------------+
Auditors' remuneration is further analysed as:-
+--------------------------------------------------+---------+------------+
| | 2008 | 2007 |
+--------------------------------------------------+---------+------------+
| | GBP'000 | GBP'000 |
+--------------------------------------------------+---------+------------+
| | | |
+--------------------------------------------------+---------+------------+
| Fees payable to the company's auditor for the | 8 | 5 |
| audit of the company's annual accounts | | |
+--------------------------------------------------+---------+------------+
| Fees payable to the company's auditor and its | | |
| associates for other services:- | | |
+--------------------------------------------------+---------+------------+
| The audit of the company's subsidiaries, | 17 | 22 |
| pursuant to legislation | | |
+--------------------------------------------------+---------+------------+
| Tax services | 5 | 5 |
+--------------------------------------------------+---------+------------+
| Other services | 2 | 4 |
+--------------------------------------------------+---------+------------+
| | _____ | _____ |
+--------------------------------------------------+---------+------------+
5 FINANCIAL INCOME
+---------------------------------------------+-------------+-------------+
| | 2008 | 2007 |
+---------------------------------------------+-------------+-------------+
| | GBP'000 | GBP'000 |
+---------------------------------------------+-------------+-------------+
| | | |
+---------------------------------------------+-------------+-------------+
| Interest receivable | 17 | 19 |
+---------------------------------------------+-------------+-------------+
| | ___ | ___ |
+---------------------------------------------+-------------+-------------+
6 INTEREST PAYABLE AND SIMILAR CHARGES
+----------------------------------------------+------------+------------+
| | 2008 | 2007 |
+----------------------------------------------+------------+------------+
| | GBP'000 | GBP'000 |
+----------------------------------------------+------------+------------+
| | | |
+----------------------------------------------+------------+------------+
| Interest payable on redeemable preference | 1 | 10 |
| shares | | |
+----------------------------------------------+------------+------------+
| Interest on bank loans and overdraft | 3 | - |
+----------------------------------------------+------------+------------+
| Interest on hire purchase contracts | 3 | 2 |
+----------------------------------------------+------------+------------+
| | ------ | ------ |
+----------------------------------------------+------------+------------+
| | 7 | 12 |
+----------------------------------------------+------------+------------+
| | ___ | ___ |
+----------------------------------------------+------------+------------+
7 DISCONTINUED OPERATION
On 16 October 2008 the Group sold the share capital of The Marketing Guild
Limited for GBP1. This company was one of the legacy businesses acquired when
the Group was admitted to AIM. The business was not a discontinued operation or
classified as held for resale as at 30 November 2007 and the comparative income
statement has been re-presented to show the discontinued operation separately
from continuing operations.
+---------------------------------------------+--------------+--------------+
| Results of discontinued operation | 2008 | 2007 |
+---------------------------------------------+--------------+--------------+
| Note | GBP'000 | GBP'000 |
+---------------------------------------------+--------------+--------------+
| | | |
+---------------------------------------------+--------------+--------------+
| Revenue | 79 | 171 |
+---------------------------------------------+--------------+--------------+
| Expenses | (82) | (220) |
+---------------------------------------------+--------------+--------------+
| | ----------- | ----------- |
+---------------------------------------------+--------------+--------------+
| Results from operating activities | (3) | (49) |
+---------------------------------------------+--------------+--------------+
| Financial income | 1 | 1 |
+---------------------------------------------+--------------+--------------+
| | ----------- | ----------- |
+---------------------------------------------+--------------+--------------+
| Results from operating activities, net of | (2) | (48) |
| tax | | |
+---------------------------------------------+--------------+--------------+
| | | |
+---------------------------------------------+--------------+--------------+
| Cost of investment | (1,707) | - |
+---------------------------------------------+--------------+--------------+
| Net assets sold | (34) | - |
+---------------------------------------------+--------------+--------------+
| Costs of sale | (8) | - |
+---------------------------------------------+--------------+--------------+
| | ------------ | ----------- |
+---------------------------------------------+--------------+--------------+
| Loss for the period | (1,751) | (48) |
+---------------------------------------------+--------------+--------------+
| | _______ | ____ |
+---------------------------------------------+--------------+--------------+
| | | |
+---------------------------------------------+--------------+--------------+
| Basic loss per share (Note 9) | (1.52)p | (0.04)p |
+---------------------------------------------+--------------+--------------+
| Diluted loss per share (Note 9) | (1.21)p | (0.04)p |
+---------------------------------------------+--------------+--------------+
| | _______ | _______ |
+---------------------------------------------+--------------+--------------+
+---------------------------------------------+---------------------+---------------+
| Cash flows from discontinued operation | | |
+---------------------------------------------+---------------------+---------------+
| Net cash used in operating activities | - | (13) |
+---------------------------------------------+---------------------+---------------+
| Net cash from investing activities | (33) | 1 |
+---------------------------------------------+---------------------+---------------+
| | ----------- | ----------- |
| | | |
+---------------------------------------------+---------------------+---------------+
| Net cash used in discontinued operation | (33) | (12) |
+---------------------------------------------+---------------------+---------------+
| | ___ | ____ |
| | | |
+---------------------------------------------+---------------------+---------------+
+--------------------------------------------+------------+---------------+
| Effect of disposal on the financial position of the | |
| group | |
+---------------------------------------------------------+---------------+
| | | 2008 |
+--------------------------------------------+------------+---------------+
| | | GBP'000 |
+--------------------------------------------+------------+---------------+
| Development costs | | (22) |
+--------------------------------------------+------------+---------------+
| Other receivables | | (12) |
+--------------------------------------------+------------+---------------+
| Cash and cash equivalents | | (25) |
+--------------------------------------------+------------+---------------+
| Other payables | | 25 |
+--------------------------------------------+------------+---------------+
| | | ------- |
+--------------------------------------------+------------+---------------+
| Net liabilities | | (34) |
+--------------------------------------------+------------+---------------+
| | | ____ |
+--------------------------------------------+------------+---------------+
8 LOSS ATTRIBUTABLE TO MEMBERS OF THE PARENT COMPANY
As permitted by Section 230 of the Companies Act, the profit and loss account of
the parent company is not presented as part of these accounts. The parent
company's loss for the financial year amounted to GBP5,005,000 (2007: profit
GBP64,000).
9 EARNINGS PER SHARE
The calculation of earnings per share is based upon the loss after taxation of
GBP5,876,000 (2007: GBP92,000) divided by the weighted average number of
ordinary shares in issue during the year which was 114,968,122 (2007:
109,800,999). The weighted average number of ordinary shares used in the
calculation of diluted earnings per share is 145,028,987 (2007: 115,082,987).
This has been adjusted for the effect of potentially dilutive share options
granted under the company's share option schemes.
An adjusted earnings per share and a diluted adjusted earnings per share, which
exclude goodwill amortisation, have also been calculated to allow shareholders
to gain a clearer understanding of the trading performance of the group. This
has been computed as follows:
+---------------+---------+-------------+----------+----------+---------+-------------+----------+
| | 2008 | 2007 |
+---------------+----------------------------------+---------------------------------------------+
| | Loss | Weighted | Loss per share | Loss | Weighted | Earnings |
| | after | average | (pence) | after | average | per |
| | tax | no. of | | tax | no. of | share |
| | GBP'000 | shares | | GBP'000 | shares | (pence) |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| | | | | | | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| Earnings | (4,125) | 114,968,122 | (3.59)p | (44) | 109,800,999 | |
| attributable | | | | | | (0.04)p |
| to ordinary | | | | | | |
| shareholders | | | | | | |
| from | | | | | | |
| continuing | | | | | | |
| activities | | | | | | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| Loss | (1,751) | | (1.52)p | (48) | | (0.04)p |
| attributable | | | | | | |
| to | | | | | | |
| discontinued | | | | | | |
| activity | | | | | | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| Loss for the | (5,876) | 114,968,122 | (5.11)p | (92) | 109,800,999 | (0.08)p |
| year | | | | | | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| Dilutive | - | 30,060,865 | - | - | 5,261,968 | - |
| effect of | | | | | | |
| options | | | | | | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| Diluted | (4,125) | 145,028,987 | (2.84)p | (44) | 115,062,967 | |
| earnings per | | | | | | (0.04)p |
| share on | | | | | | |
| continuing | | | | | | |
| activities | | | | | | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| Diluted | (1,751) | 145,028,987 | (1.21)p | (48) | 115,062,967 | (0.04)p |
| earnings per | | | | | | |
| share on | | | | | | |
| discontinued | | | | | | |
| activities | | | | | | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| Diluted | (5,876) | 145,028,987 | (4.12)p | (92) | 115,062,967 | (0.08)p |
| earnings per | | | | | | |
| share for the | | | | | | |
| year | | | | | | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| | ______ | | ___ | ____ | | _____ |
| | | _______ | | | ________ | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| | | | | | | |
+---------------+---------+-------------+---------------------+---------+-------------+----------+
| | | | | | | |
+---------------+---------+-------------+----------+----------+---------+-------------+----------+
10 PURCHASE OF SUBSIDIARY UNDERTAKING AND BUSINESS
On 5 November 2008 the Group acquired 100% of the share capital of Solcara
Limited, a UK search and information management company.
The fair and book values of the assets and goodwill acquired is set out below:
+------------------------------------+----------------+------------+----------------+
| | Book | Adjustment | Fair value |
| | value | | |
+------------------------------------+----------------+------------+----------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+----------------+------------+----------------+
| Net liabilities acquired | | | |
+------------------------------------+----------------+------------+----------------+
| Fixtures, fittings and equipment | 8 | - | 8 |
+------------------------------------+----------------+------------+----------------+
| Trade debtors and other | 446 | - | 446 |
| receivables | | | |
+------------------------------------+----------------+------------+----------------+
| Cash and cash equivalents | 15 | - | 15 |
+------------------------------------+----------------+------------+----------------+
| Creditors | (746) | - | (746) |
+------------------------------------+----------------+------------+----------------+
| Bank borrowings | (48) | - | (48) |
+------------------------------------+----------------+------------+----------------+
| | -------------- | | -------------- |
+------------------------------------+----------------+------------+----------------+
| | (325) | - | (325) |
+------------------------------------+----------------+------------+----------------+
| Goodwill | 1,155 | - | 1,155 |
+------------------------------------+----------------+------------+----------------+
| | -------------- | | -------------- |
+------------------------------------+----------------+------------+----------------+
| | 830 | - | 830 |
+------------------------------------+----------------+------------+----------------+
| | ____ | | ____ |
+------------------------------------+----------------+------------+----------------+
| Made up of:- | | | |
+------------------------------------+----------------+------------+----------------+
| Consideration | 750 | | 750 |
+------------------------------------+----------------+------------+----------------+
| Costs | 80 | | 80 |
+------------------------------------+----------------+------------+----------------+
| | -------- | | --------- |
+------------------------------------+----------------+------------+----------------+
| | 830 | | 830 |
+------------------------------------+----------------+------------+----------------+
| | ___ | | ___ |
+------------------------------------+----------------+------------+----------------+
Goodwill represents the value of synergies and the acquiree's assembled
workforce.
Below is a summary of the consolidated income statement showing information
separated between continuing operations and acquisitions:
+-------------------------------------+------------+-------------+-----------+
| | From | Acquisition | Total |
| | continuing | | |
| | operations | | |
+-------------------------------------+------------+-------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+-------------------------------------+------------+-------------+-----------+
| | | | |
+-------------------------------------+------------+-------------+-----------+
| Turnover | 3,879 | 88 | 3,967 |
+-------------------------------------+------------+-------------+-----------+
| Gross profit | 1,805 | 16 | 1,821 |
+-------------------------------------+------------+-------------+-----------+
| Administrative expenses | (6,145) | (69) | (6,214) |
+-------------------------------------+------------+-------------+-----------+
| Operating loss | (4,340) | (53) | (4,393) |
+-------------------------------------+------------+-------------+-----------+
| | ____ | ____ | ____ |
+-------------------------------------+------------+-------------+-----------+
If the acquisition had occurred on 1 December 2007, management estimates that
consolidated revenue would have been GBP5.437m and consolidated loss for the
year would have been GBP4.374m.
11 INTANGIBLE FIXED ASSETS
+------------------------------------+-------------------+-------------------+-------------------+
| | Development | Goodwill | Total |
| | costs | | |
+------------------------------------+-------------------+-------------------+-------------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+-------------------+-------------------+-------------------+
| Cost | | | |
+------------------------------------+-------------------+-------------------+-------------------+
| At 1 December 2007 | 681 | 6,491 | 7,172 |
+------------------------------------+-------------------+-------------------+-------------------+
| Additions | - | 1,154 | 1,154 |
+------------------------------------+-------------------+-------------------+-------------------+
| Disposed with subsidiary | (42) | (1,707) | (1,749) |
+------------------------------------+-------------------+-------------------+-------------------+
| | ----------------- | ----------------- | ----------------- |
+------------------------------------+-------------------+-------------------+-------------------+
| At 30 November 2008 | 639 | 5,938 | 6,577 |
+------------------------------------+-------------------+-------------------+-------------------+
| | ----------------- | ----------------- | ----------------- |
+------------------------------------+-------------------+-------------------+-------------------+
| Amortisation and impairment | | | |
+------------------------------------+-------------------+-------------------+-------------------+
| At 1 December 2007 | 126 | - | 126 |
+------------------------------------+-------------------+-------------------+-------------------+
| Disposed with subsidiary | (19) | - | (19) |
+------------------------------------+-------------------+-------------------+-------------------+
| Impairment charge for the year | 532 | 2,950 | 3,482 |
+------------------------------------+-------------------+-------------------+-------------------+
| | ------------- | ------------ | ------------ |
+------------------------------------+-------------------+-------------------+-------------------+
| At 30 November 2008 | 639 | 2,950 | 3,589 |
+------------------------------------+-------------------+-------------------+-------------------+
| | ------------- | ------------ | ------------ |
+------------------------------------+-------------------+-------------------+-------------------+
| Net Book Value | | | |
+------------------------------------+-------------------+-------------------+-------------------+
| At 30 November 2008 | - | 2,988 | 2,988 |
+------------------------------------+-------------------+-------------------+-------------------+
| | ______ | ______ | ______ |
+------------------------------------+-------------------+-------------------+-------------------+
| | | | |
+------------------------------------+-------------------+-------------------+-------------------+
| At 30 November 2007 | 555 | 6,491 | 7,046 |
+------------------------------------+-------------------+-------------------+-------------------+
| | ______ | ______ | ______ |
+------------------------------------+-------------------+-------------------+-------------------+
Finance lease agreements
Included within net book value of GBP2,988,000 is GBPnil (2007: GBP18,000)
relating to assets held under finance lease agreements. The impairment charged
to the financial statements in the year in respect of such assets amounted to
GBP16,000 (2007: GBP2,000).
Recoverability of development costs
An impairment review was triggered in the year for the carrying values of the
intangible assets, representing the development of new projects, as a result of
the change in direction of the group and its products which is to be followed by
new management. As a result all previously capitalised development costs are
seen to be fully impaired.
Impairment testing for cash-generating units containing goodwill
For the purpose of impairment testing, goodwill is allocated to the group's
operating companies which represent the lowest level within the group at which
the goodwill is monitored for internal management accounts purposes.
The aggregate carrying amounts of goodwill allocated to each business segment
are:-
+------------------------------------------+---------------+--------------+
| | 2008 | 2007 |
+------------------------------------------+---------------+--------------+
| | GBP'000 | GBP'000 |
+------------------------------------------+---------------+--------------+
| | | |
+------------------------------------------+---------------+--------------+
| Software as a service | 2,188 | 2,992 |
+------------------------------------------+---------------+--------------+
| Data Management | 800 | 1,430 |
+------------------------------------------+---------------+--------------+
| Other | - | 2,069 |
+------------------------------------------+---------------+--------------+
| | ________ | ________ |
+------------------------------------------+---------------+--------------+
| | 2,988 | 6,490 |
+------------------------------------------+---------------+--------------+
| | ______ | ______ |
+------------------------------------------+---------------+--------------+
The value in use was determined by discounting the future cash flows generated
from the continuing operation of the business segment and was based on the
following assumptions:
* Cash flows were projected based on actual operating results and a one year Group
trading forecast.
* Cash flows were extrapolated for a further 4 years based on a growth rate of 2%
per annum in years 2 to 4.
* The weighted average cost of capital is 5%
12 PROPERTY, PLANT & EQUIPMENT
+-----------------------------------+------------+----------+----------------+
| | | | Fixtures |
| | | | fittings and |
| | | | equipment |
+-----------------------------------+------------+----------+----------------+
| | | | GBP'000 |
+-----------------------------------+------------+----------+----------------+
| Cost | | | |
+-----------------------------------+------------+----------+----------------+
| At 1 December 2007 | | | 598 |
+-----------------------------------+------------+----------+----------------+
| Additions | | | 67 |
+-----------------------------------+------------+----------+----------------+
| Fully depreciated | | | (52) |
+-----------------------------------+------------+----------+----------------+
| On acquisition of subsidiary | | | 8 |
+-----------------------------------+------------+----------+----------------+
| | | | -------------- |
+-----------------------------------+------------+----------+----------------+
| At 30 November 2008 | | | 621 |
+-----------------------------------+------------+----------+----------------+
| | | | -------------- |
+-----------------------------------+------------+----------+----------------+
| Depreciation | | | |
+-----------------------------------+------------+----------+----------------+
| At 1 December 2007 | | | 400 |
+-----------------------------------+------------+----------+----------------+
| Charge for the year | | | 81 |
+-----------------------------------+------------+----------+----------------+
| Fully depreciated | | | (52) |
+-----------------------------------+------------+----------+----------------+
| On acquisition of subsidiary | | | - |
+-----------------------------------+------------+----------+----------------+
| | | | -------------- |
+-----------------------------------+------------+----------+----------------+
| At 30 November 2008 | | | 429 |
+-----------------------------------+------------+----------+----------------+
| | | | -------------- |
+-----------------------------------+------------+----------+----------------+
| Net Book Value | | | |
+-----------------------------------+------------+----------+----------------+
| At 30 November 2008 | | | 192 |
+-----------------------------------+------------+----------+----------------+
| | | | _____ |
+-----------------------------------+------------+----------+----------------+
| | | | |
+-----------------------------------+------------+----------+----------------+
| At 30 November 2007 | | | 198 |
+-----------------------------------+------------+----------+----------------+
| | | | _____ |
+-----------------------------------+------------+----------+----------------+
13 INVENTORIES
+------------------------------------------+---------------+--------------+
| | 2008 | 2007 |
+------------------------------------------+---------------+--------------+
| | GBP'000 | GBP'000 |
+------------------------------------------+---------------+--------------+
| | | |
+------------------------------------------+---------------+--------------+
| Consumables | 268 | 351 |
+------------------------------------------+---------------+--------------+
| | _____ | _____ |
+------------------------------------------+---------------+--------------+
14 TRADE AND OTHER RECEIVABLES
+------------------------------------------+---------------+--------------+
| | 2008 | 2007 |
+------------------------------------------+---------------+--------------+
| | GBP'000 | GBP'000 |
+------------------------------------------+---------------+--------------+
| | | |
+------------------------------------------+---------------+--------------+
| Current assets | | |
+------------------------------------------+---------------+--------------+
| Trade debtors | 992 | 909 |
+------------------------------------------+---------------+--------------+
| VAT | 35 | 9 |
+------------------------------------------+---------------+--------------+
| Current income tax receivable | 55 | 45 |
+------------------------------------------+---------------+--------------+
| Prepayments and accrued income | 373 | 193 |
+------------------------------------------+---------------+--------------+
| | ________ | ________ |
+------------------------------------------+---------------+--------------+
| | 1,455 | 1,156 |
+------------------------------------------+---------------+--------------+
| | ______ | ______ |
+------------------------------------------+---------------+--------------+
15 SHARE CAPITAL
+-------------------------------------------------+----------+------------+
| | 2008 | 2007 |
+-------------------------------------------------+----------+------------+
| Equity | GBP'000 | GBP'000 |
+-------------------------------------------------+----------+------------+
| | | |
+-------------------------------------------------+----------+------------+
| Authorised: | | |
+-------------------------------------------------+----------+------------+
| Equity: 175,000,000 Ordinary shares of 0.5p | 878 | 878 |
| each | | |
+-------------------------------------------------+----------+------------+
| | _____ | _____ |
+-------------------------------------------------+----------+------------+
| Allotted, issued and fully paid: | | |
+-------------------------------------------------+----------+------------+
| 154,800,999 Ordinary shares of 0.5p each | 779 | 549 |
| (2007: 109,800,999 ordinary shares of 0.5p | | |
| each) | | |
+-------------------------------------------------+----------+------------+
| | _____ | _____ |
+-------------------------------------------------+----------+------------+
| | | |
+-------------------------------------------------+----------+------------+
| Non-equity | | |
+-------------------------------------------------+----------+------------+
| | | |
+-------------------------------------------------+----------+------------+
| Authorised: | | |
+-------------------------------------------------+----------+------------+
| 191,177 8.5% Redeemable preference shares of | 191 | 191 |
| GBP1 each | | |
+-------------------------------------------------+----------+------------+
| 50,000 Redeemable shares of GBP1 each | 50 | 50 |
+-------------------------------------------------+----------+------------+
| | _______ | _______ |
+-------------------------------------------------+----------+------------+
| | 241 | 241 |
+-------------------------------------------------+----------+------------+
| | _____ | _____ |
+-------------------------------------------------+----------+------------+
| Allotted, issued and fully paid: | | |
+-------------------------------------------------+----------+------------+
| Nil 8.5% Redeemable preference shares of GBP1 | - | 31 |
| each | | |
| (2007: 31,177) | | |
+-------------------------------------------------+----------+------------+
| | _____ | _____ |
+-------------------------------------------------+----------+------------+
On 23 October 2008 the company issued 46,000,000 shares of 0.5 pence each at a
price of 2.75 pence.
Ordinary share options granted and subsisting at 30 November 2008 were as
follows:
+----------------+------------------+-----------------+-------------------+
| Date of grant | Option price | Number of | Exercisable |
| | | shares | between |
+----------------+------------------+-----------------+-------------------+
| | | | |
+----------------+------------------+-----------------+-------------------+
| 4 November | 9.25p | 775,000 | Nov 2006 - Nov |
| 2003 | | | 2013 |
+----------------+------------------+-----------------+-------------------+
| 13 December | 10.0p | 1,207,500 | Dec 2007 - Dec |
| 2004 | | | 2017 |
+----------------+------------------+-----------------+-------------------+
| 17 October | 8.0p | 900,000 | Oct 2008 - Oct |
| 2005 | | | 2018 |
+----------------+------------------+-----------------+-------------------+
| 24 April 2006 | 7.5p | 911,968 | April 2009 - |
| | | | April 2006 |
+----------------+------------------+-----------------+-------------------+
| 17 November | 6.75p | 966,667 | Nov 2009 - Nov |
| 2006 | | | 2016 |
+----------------+------------------+-----------------+-------------------+
| 1 February | 2.75p | 2,000,000 | Feb 2001 - Feb |
| 2008 | | | 2018 |
+----------------+------------------+-----------------+-------------------+
| 23 October | 2.75p | 23,300,000 | No time limit |
| 2008 | | | |
+----------------+------------------+-----------------+-------------------+
No adjustment has been made to the reserves for the cost of granting these share
options under FRS20 ' Share Based Payments' because the materiality of the
transaction is insufficient to warrant adjustment.
16 RESERVES
+------------------------------------+--------------------+--------------+--------------------+
| | Share | Capital | Profit & |
+------------------------------------+--------------------+--------------+--------------------+
| | Premium | Redemption | Loss |
+------------------------------------+--------------------+--------------+--------------------+
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------+--------------------+--------------+--------------------+
| | | | |
+------------------------------------+--------------------+--------------+--------------------+
| | | | |
+------------------------------------+--------------------+--------------+--------------------+
| At 1 December 2007 | 7,906 | 160 | (576) |
+------------------------------------+--------------------+--------------+--------------------+
| Loss for the year | - | - | (5,876) |
+------------------------------------+--------------------+--------------+--------------------+
| Arising on issue of share capital | 967 | - | - |
+------------------------------------+--------------------+--------------+--------------------+
| Redemption value of preference | - | 31 | (31) |
| shares | | | |
+------------------------------------+--------------------+--------------+--------------------+
| | ------------------ | ------------ | ------------------ |
+------------------------------------+--------------------+--------------+--------------------+
| At 30 November 2008 | 8,873 | 191 | (6,483) |
+------------------------------------+--------------------+--------------+--------------------+
| | ________ | ______ | ________ |
+------------------------------------+--------------------+--------------+--------------------+
| | | | |
+------------------------------------+--------------------+--------------+--------------------+
17 RECONCILIATION OF MOVEMENT IN EQUITY SHAREHOLDERS' FUNDS
+-------------------------------------------------+--------------------+--------------------+
| | 2008 | 2007 |
+-------------------------------------------------+--------------------+--------------------+
| | GBP'000 | GBP'000 |
+-------------------------------------------------+--------------------+--------------------+
| | | |
+-------------------------------------------------+--------------------+--------------------+
| Opening shareholders' funds | 8,039 | 8,131 |
+-------------------------------------------------+--------------------+--------------------+
| Loss for the financial year | (5,876) | (92) |
+-------------------------------------------------+--------------------+--------------------+
| Equity shares issued in the year | 230 | - |
+-------------------------------------------------+--------------------+--------------------+
| Share premium on equity shares issued | 1,035 | - |
+-------------------------------------------------+--------------------+--------------------+
| Costs incurred | (68) | - |
+-------------------------------------------------+--------------------+--------------------+
| | ------------------ | ------------------ |
+-------------------------------------------------+--------------------+--------------------+
| Closing shareholders' funds | 3,360 | 8,039 |
+-------------------------------------------------+--------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+--------------------+--------------------+
18 ANALYSIS OF CHANGES IN NET FUNDS
+--------------------------+--------------+-------------------+-------------+-------------------+
| | As at 1 | Cash | Other | As at 30 |
| | December | flows | non cash | November |
| | 2007 | | movements | 2008 |
+--------------------------+--------------+-------------------+-------------+-------------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------------------+--------------+-------------------+-------------+-------------------+
| | | | | |
+--------------------------+--------------+-------------------+-------------+-------------------+
| Cash in hand and at bank | 872 | (109) | - | 763 |
+--------------------------+--------------+-------------------+-------------+-------------------+
| | ------------ | ----------------- | ----------- | ----------------- |
+--------------------------+--------------+-------------------+-------------+-------------------+
| | | | | |
+--------------------------+--------------+-------------------+-------------+-------------------+
| Redeemable preference | (31) | 31 | - | - |
| shares | | | | |
+--------------------------+--------------+-------------------+-------------+-------------------+
| Bank loan | - | 4 | (44) | (40) |
+--------------------------+--------------+-------------------+-------------+-------------------+
| Other loan | - | 4 | (8) | (4) |
+--------------------------+--------------+-------------------+-------------+-------------------+
| Leasing agreements | (8) | 6 | - | (2) |
+--------------------------+--------------+-------------------+-------------+-------------------+
| | ----------- | --------------- | ----------- | --------------- |
+--------------------------+--------------+-------------------+-------------+-------------------+
| | (39) | 45 | 52 | (46) |
+--------------------------+--------------+-------------------+-------------+-------------------+
| | ----------- | --------------- | ---------- | --------------- |
+--------------------------+--------------+-------------------+-------------+-------------------+
| | | | | |
+--------------------------+--------------+-------------------+-------------+-------------------+
| Total | 833 | (64) | (52) | 717 |
+--------------------------+--------------+-------------------+-------------+-------------------+
| | _____ | _____ | _____ | _____ |
+--------------------------+--------------+-------------------+-------------+-------------------+
19 EVENTS AFTER THE BALANCE SHEET DATE
On 10 December 2008 the company issued 3,636,364 shares of 0.5 pence each at a
price of 2.75 pence.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR CKBKBBBKBCNB
|