TIDMNETD
RNS Number : 7183Q
NetDimensions (Holdings) Limited
17 April 2009
?
NetDimensions (Holdings) Limited
("NetDimensions" or "the Company")
Final Results for the year ended 31 December 2008
NetDimensions (AIM: NETD), a provider of performance, knowledge and learning
management systems, announces its Final Results for the year ended 31 December
2008.
Financial Highlights
* Revenues up 46% to US$6.35 million (2007: US$4.34 million)
* Operating profit of US$0.09 million (2007: US$1.08 million loss)
* Pre-tax loss of US$0.59 million (2007: US$0.95 million pre-tax loss)
* Cash flow from operating activities of US$0.65 million (2007: US$0.59 million)
* Cash balances of US$5.34 million (2007: US$5.71 million) and no debt
Operational Highlights
* Investment in 50:50 joint venture with Azeus Systems Holdings Ltd
* Acquisition of 25% interest in Peak Pacific Ltd, in September 2008
* Expansion of the Company's sales, marketing and engineering operations
* New operations opened in the Philippines to provide additional support and
services
* Approximately 90 new clients across the financial services, aviation, energy and
healthcare sectors
* Release of version 5.5 of flagship product Enterprise Knowledge Platform
Commenting on the results and the outlook, Roger Durn, Chairman, said:
"NetDimensions has a sound business model and, as a rapidly expanding and cash
generative business, remains in a good position to grow. We have maintained a
healthy cash level, with cash balances on 31 December 2008 of US$5.34 million
held in a mix of US Dollars, Sterling and Euros. This equates to approximately
14.7p per share at 31 December 2008 currency rates. We will continue to use cash
prudently and we believe that the two investments made in 2008 represent future
growth opportunities for the Company.
"While market conditions are likely to be more challenging reflecting the
broader macro-economic conditions, the first quarter of trading results in 2009
were generally in line with management expectations."
Enquiries:
+----------------------------+---------------------+-----------------------------------+
| NetDimensions | Jay Shaw | Tel: +852 2122 4500 |
+----------------------------+---------------------+-----------------------------------+
| | Jeffery Cheung | info@netdimensions.com |
+----------------------------+---------------------+-----------------------------------+
| | | |
+----------------------------+---------------------+-----------------------------------+
| Arden Partners plc | Fred Walsh | Tel: +44 20 7398 1651 |
+----------------------------+---------------------+-----------------------------------+
| Nomad & Broker | | fred.walsh@arden-partners.com |
+----------------------------+---------------------+-----------------------------------+
| | Matthew Armitt | matthew.armitt@arden-partners.com |
+----------------------------+---------------------+-----------------------------------+
| | | |
+----------------------------+---------------------+-----------------------------------+
| Walbrook PR Ltd | Paul McManus | Tel: +44 20 7933 8780 |
+----------------------------+---------------------+-----------------------------------+
| Financial Public Relations | | Mob: +44 7980 541 893 |
+----------------------------+---------------------+-----------------------------------+
| | | paul.mcmanus@walbrookpr.com |
+----------------------------+---------------------+-----------------------------------+
| | Ben Knowles | Mob: +44 7900 346 978 |
+----------------------------+---------------------+-----------------------------------+
| | | ben.knowles@walbrookpr.com |
+----------------------------+---------------------+-----------------------------------+
NETDIMENSIONS (HOLDINGS) LIMITED
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report on the results of NetDimensions (Holdings) Limited for
the year ended 31 December 2008, our second year as a listed company, which has
proved to be both an exciting and successful year for the Company.
Financial Review
During 2008 NetDimensions increased revenues by 46% to US$6.35 million (2007:
US$4.34 million). Despite the more uncertain global economic conditions in the
second half of the year, the fundamental strength of our business has led to
improved results. The Company has maintained significant growth in our two
biggest regions, EMEA and North America, with increases of 56% and 30%
respectively over the same period last year. We have made good progress in
driving sales of software licenses and hosting which increased by 42% and 55%
respectively in the same period.
Gross profit margin was 93% (2007: 96%). The reduction in gross profit margin
can be attributed to the introduction of a new product, Enterprise Content
Platform, jointly designed and developed with Xyleme Inc. Administration
expenses were in line with the Group's increase in the development and expansion
of products, sales and marketing capability.
The Company made an operating profit of US$0.09 million (2007: US$1.08 million
loss). Due to the cash balances on 31 December 2008 being held in a mix of US
Dollars, Sterling and Euros, the Company had an unrealised foreign exchange
charge of US$0.71 million for the year ended 31 December 2008. Although this is
a non-cash charge, it had a substantial effect on the Company's current year
reported profitability. In addition, the Company had to report the losses
related to the combined start-up expenses for the two companies in which
NetDimensions invested during the year. Overall the Company made a pre-tax loss
of US$0.59 million (2007: US$0.95 million pre-tax loss).
The Company has continued to maintain a strong cash position, with cash balances
of US$5.34 million (2007: US$5.71 million) and the cash generated from the
operating activities for the year was US$0.65 million (2007: US$0.59 million).
The Board does not intend to recommend payment of a dividend at this stage in
the Company's development, however, it is the Board's intention to pay dividends
in the future. Surplus funds will be used to reinvest in the continued growth
of the Company.
Operational Review
The Company has made substantial progress in key areas during the year and has
continued to deliver on the strategy set out at the time of the IPO, including:
* The investment in two strategic partnerships:
* a 50:50 joint venture agreement with Azeus Systems Holdings Ltd, a leading IT
services provider listed on the main board of the Singapore Stock Exchange, as
announced on 21 April 2008; and
* the acquisition of a 25% interest in Peak Pacific Limited, which was formed in
September 2008 through the spin-out of Cathay Pacific Airways' corporate
eLearning business unit.
* The continued expansion of the Company's sales, marketing and engineering
operations.
The Company added approximately 90 new clients during 2008. Our new client wins
in 2008 include, for example, Yorkshire Housing Association, Royal London,
Virgin Atlantic Airways, International Federation of Airline Pilots'
Associations, Royal Air Force of Oman, Liz Claiborne Inc., Dak Americas LLC,
Miami Herald, iLevel by Weyerhaeuser, Electrabel Nederland and University of
Cape Town. We continue to target industries which are highly regulated such as
financial services, aviation, energy and healthcare.
We focused in 2008 on strengthening our services by offering a more structured
implementation services programme for both existing and new clients. Clients
are given a choice between three different implementation services packages to
help them install our flagship product, the Enterprise Knowledge Platform (EKP),
the way they want. For customers with special requirements, an implementation
services package can be tailored that is uniquely suited to their needs.
The Company also set up operations in the Philippines to address the growing
need for dedicated technical support for clients around the world. The
technical team has now grown to eight and will soon expand to incorporate
marketing and graphic design services as well.
As part of the Company's goal of continuous product improvement to give clients
an easier and more convenient experience with EKP and let them focus on
learning, version 5.5 of EKP was released in August 2008. Designed in
partnership with our customers to meet their requirements, EKP 5.5 includes
visual enhancements, improvements in accessibility, resource management,
usability and version control. The new technology is sold as part of the
Company's high-end EKP Gold offering and in the Enterprise Assessment Platform
(EAP). In addition, post year end, we released EKP 5.6 which contains
additional strategic enhancements to our flagship product.
EAP offers organisations a platform for testing and certification. This is used
by airlines which require flight operations testing for pilot certification and
for other staff compliance licensing. EAP is focused on highly regulated
industries such as financial services, transportation, public utilities,
government agencies and other services focused sectors.
Outlook
NetDimensions has a sound business model and, as a rapidly expanding and cash
generative business, remains in a good position to grow. We have maintained a
healthy cash level, with cash balances on 31 December 2008 of US$5.34 million
held in a mix of US Dollars, Sterling and Euros. This equates to approximately
14.7p per share at 31 December 2008 currency rates. We will continue to use cash
prudently and we believe that the two investments made in 2008 represent future
growth opportunities for the Company.
We will continue to seek to take advantage of demand for our services,
particularly from clients in highly regulated and compliance driven industries.
Our focus will be much more on industry verticals and putting more time and
effort into creating functionality that will help us expand usage within client
accounts, as well as attract new customers.
While market conditions are likely to be more challenging reflecting the broader
macro-economic conditions, the first quarter of trading results in 2009 were
generally in line with management expectations.
Roger Philip Edward Durn
Chairman
17 April 2009
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2008
+------------------------------------------+-------+-------------+--+-------------+
| |Notes | 2008 | | 2007 |
+------------------------------------------+-------+-------------+--+-------------+
| | | US$ | | US$ |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Revenue | 1 & | 6,352,524 | | 4,336,659 |
| | 2 | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Cost of sales | | (421,645) | | (170,057) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Gross profit | | 5,930,879 | | 4,166,602 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Administrative expenses before | | (5,837,302) | | (4,152,202) |
| exceptional items | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Exceptional costs of Placing and | | - | | (1,094,967) |
| Admission to AIM | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Total administrative expenses | | (5,837,302) | | (5,247,169) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Operating profit/(loss) | | 93,577 | | (1,080,567) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Net finance (costs)/gains | 3 | (507,795) | | 131,903 |
+------------------------------------------+-------+-------------+--+-------------+
| Share of loss of an associate | | (24,041) | | - |
+------------------------------------------+-------+-------------+--+-------------+
| Share of loss of a jointly controlled | | (150,403) | | - |
| entity | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Loss before taxation | 4 | (588,662) | | (948,664) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Taxation | | - | | - |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Loss for the year | | (588,662) | | (948,664) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Attributable to: | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Equity shareholders of the Company | | (588,662) | | (948,664) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Loss per share: | 5 | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Basic | | US$(0.02) | | US$(0.04) |
+------------------------------------------+-------+-------------+--+-------------+
| Diluted | | US$(0.02) | | US$(0.04) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE YEAR ENDED 31 DECEMBER 2008
+------------------------------------------+-------+-------------+--+-------------+
| | Notes | 2008 | | 2007 |
+------------------------------------------+-------+-------------+--+-------------+
| | | US$ | | US$ |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Exchange differences on translation of | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| foreign operations | | 37,702 | | (3,631) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Income and expense recognised directly | | | | |
| in | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| equity | | 37,702 | | (3,631) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Loss for the year | | (588,662) | | (948,664) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Total income and expense recognised in | | (550,960) | | (952,295) |
| the year | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Attributable to: | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Equity shareholders of the Company | | (550,960) | | (952,295) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2008
+------------------------------------------+-------+-------------+--+-------------+
| | Notes | 2008 | | 2007 |
+------------------------------------------+-------+-------------+--+-------------+
| | | US$ | | US$ |
+------------------------------------------+-------+-------------+--+-------------+
| ASSETS | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Non-current assets | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Property, plant and equipment | | 144,394 | | 202,980 |
+------------------------------------------+-------+-------------+--+-------------+
| Intangible assets | | 49,790 | | 40,503 |
+------------------------------------------+-------+-------------+--+-------------+
| Interest in an associate | | 226,275 | | - |
+------------------------------------------+-------+-------------+--+-------------+
| Interest in a jointly controlled entity | | 49,597 | | - |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | 470,056 | | 243,483 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Current assets | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Inventories | | - | | 10,584 |
+------------------------------------------+-------+-------------+--+-------------+
| Trade and other receivables | | 3,254,905 | | 2,737,537 |
+------------------------------------------+-------+-------------+--+-------------+
| Cash and cash equivalents | 6 | 5,338,405 | | 5,711,745 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | 8,593,310 | | 8,459,866 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| TOTAL ASSETS | | 9,063,366 | | 8,703,349 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| EQUITY AND LIABILITIES | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Equity attributable to equity holders of | | | | |
| the | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Company | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Share capital | | 24,914 | | 24,864 |
+------------------------------------------+-------+-------------+--+-------------+
| Reserves | | 5,727,407 | | 6,239,190 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Total equity | | 5,752,321 | | 6,264,054 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Non-current liabilities | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Obligations under finance leases | | 1,026 | | 2,378 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Current liabilities | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Trade and other payables | | 3,308,651 | | 2,435,558 |
+------------------------------------------+-------+-------------+--+-------------+
| Obligations under finance leases | | 1,368 | | 1,359 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | 3,310,019 | | 2,436,917 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Total liabilities | | 3,311,045 | | 2,439,295 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| TOTAL EQUITY AND LIABILITIES | | 9,063,366 | | 8,703,349 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
The financial statements were approved by the Board of Directors on 17 April
2009 and were signed on its behalf by Jeffery Cyril Chung Man Cheung, Director.
BALANCE SHEET AS AT 31 DECEMBER 2008
+------------------------------------------+-------+-------------+--+-------------+
| | Notes | 2008 | | 2007 |
+------------------------------------------+-------+-------------+--+-------------+
| | | US$ | | US$ |
+------------------------------------------+-------+-------------+--+-------------+
| ASSETS | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Non-current assets | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Investments in subsidiaries | | 902,737 | | 901,737 |
+------------------------------------------+-------+-------------+--+-------------+
| Interest in an associate | | 250,000 | | - |
+------------------------------------------+-------+-------------+--+-------------+
| Interest in a jointly controlled entity | | 200,000 | | - |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | 1,352,737 | | 901,737 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Current assets | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Trade and other receivables | | 4,217,113 | | 4,088,214 |
+------------------------------------------+-------+-------------+--+-------------+
| Cash and cash equivalents | | 3,533,224 | | 4,896,721 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | 7,750,337 | | 8,984,935 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| TOTAL ASSETS | | 9,103,074 | | 9,886,672 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| EQUITY AND LIABILITIES | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Equity attributable to equity holders of | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| the Company | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Share capital | | 24,914 | | 24,864 |
+------------------------------------------+-------+-------------+--+-------------+
| Reserves | | 9,026,478 | | 9,809,773 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Total equity | | 9,051,392 | | 9,834,637 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Current liabilities | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Trade and other payables | | 51,682 | | 52,035 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Total liabilities | | 51,682 | | 52,035 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| TOTAL EQUITY AND LIABILITIES | | 9,103,074 | | 9,886,672 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
The financial statements were approved by the Board of Directors on 17 April
2009 and were signed on its behalf by Jeffery Cyril Chung Man Cheung, Director.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2008
+------------------------------------------+-------+-------------+--+-------------+
| | Notes | 2008 | | 2007 |
+------------------------------------------+-------+-------------+--+-------------+
| | | US$ | | US$ |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Cash flows from operating activities | 7 | 648,844 | | 587,514 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Cash flows from investing activities | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Purchase of property, plant and | | (43,495) | | (216,391) |
| equipment | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Purchase of intangible assets | | (56,828) | | (43,344) |
+------------------------------------------+-------+-------------+--+-------------+
| Interest received | | 199,571 | | 156,012 |
+------------------------------------------+-------+-------------+--+-------------+
| Investment in an associate | | (250,000) | | - |
+------------------------------------------+-------+-------------+--+-------------+
| Investment in a jointly controlled | | (200,000) | | - |
| entity | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Net cash used in investing activities | | (350,752) | | (103,723) |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Cash flows from financing activities | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Finance lease charge | | (335) | | (333) |
+------------------------------------------+-------+-------------+--+-------------+
| Repayments of borrowings and finance | | (1,368) | | (1,359) |
| leases | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Net proceeds from issue of shares | | - | | 4,735,613 |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Net cash (used in)/generated from | | (1,703) | | 4,733,921 |
| financing activities | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Net increase in cash and cash | | 296,389 | | 5,217,712 |
| equivalents | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Cash and cash equivalents at beginning | | 5,711,745 | | 521,332 |
| of the year | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Effect of foreign exchange rate changes, | | (669,729) | | (27,299) |
| net | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| Cash and cash equivalents at end of the | | 5,338,405 | | 5,711,745 |
| year | | | | |
+------------------------------------------+-------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-------+-------------+--+-------------+
NOTES TO THE FINANCIAL STATEMENTS
1. REVENUE
Revenue represents the aggregate of income from software licensing, hosting
services, support and maintenance and software customisation and implementation
services during the year and is analysed as follows:
+------------------------------------------------+-------------+--+-------------+
| | 2008 | | 2007 |
+------------------------------------------------+-------------+--+-------------+
| | US$ | | US$ |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| Software licensing | 2,986,803 | | 2,110,347 |
+------------------------------------------------+-------------+--+-------------+
| Hosting | 2,139,048 | | 1,383,146 |
+------------------------------------------------+-------------+--+-------------+
| Support and maintenance | 892,602 | | 575,108 |
+------------------------------------------------+-------------+--+-------------+
| Software customisation and implementation | 334,071 | | 268,058 |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| | 6,352,524 | | 4,336,659 |
+------------------------------------------------+-------------+--+-------------+
2. SEGMENTAL ANALYSIS
Primary reporting format - geographic segments
The Group operates in three geographic segments, North America, Europe, Middle
East and Africa ("EMEA") and Rest of the World. These geographic segments are
the basis on which the Group reports its primary segment information, as
presented below:
Segmental information for the year ended 31 December 2008:
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| | America | | EMEA | | World | | Total |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| | US$ | | US$ | | US$ | | US$ |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| Revenue from external | 2,616,339 | | 2,350,482 | | 1,385,703 | | 6,352,524 |
| customers | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| Revenue | 2,616,339 | | 2,350,482 | | 1,385,703 | | 6,352,524 |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| Operating profit | 38,541 | | 34,624 | | 20,412 | | 93,577 |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| Net finance costs | | | | | | | (507,795) |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| Share of loss of an | | | | | | | (24,041) |
| associate | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| Share of loss of a | | | | | | | (150,403) |
| jointly controlled entity | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| Loss before taxation | | | | | | | (588,662) |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| Taxation | | | | | | | - |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
| Loss for the year | | | | | | | (588,662) |
+---------------------------+---------------+--+---------------+--+---------------+--+---------------+
Other segment items included in the income statement for the year ended 31
December 2008:
+---------------------------+------------+--+-----------+--+------------+--+-------------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+---------------------------+------------+--+-----------+--+------------+--+-------------+
| | America | | EMEA | | World | | Total |
+---------------------------+------------+--+-----------+--+------------+--+-------------+
| | US$ | | US$ | | US$ | | US$ |
+---------------------------+------------+--+-----------+--+------------+--+-------------+
| | | | | | | | |
+---------------------------+------------+--+-----------+--+------------+--+-------------+
| Depreciation | 17,471 | | 4,311 | | 79,951 | | 101,733 |
+---------------------------+------------+--+-----------+--+------------+--+-------------+
| Amortisation | 11,179 | | 273 | | 36,351 | | 47,803 |
+---------------------------+------------+--+-----------+--+------------+--+-------------+
| Bad debts | 59,650 | | - | | 22,343 | | 81,993 |
+---------------------------+------------+--+-----------+--+------------+--+-------------+
Information regarding segment assets and liabilities as at 31 December 2008
and capital expenditure in the year then ended, based on the locations of
customers:
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | America | | EMEA | | World | | Total |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | US$ | | US$ | | US$ | | US$ |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | | | | | | | |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| Total assets | 159,516 | | 7,564 | | 8,896,286 | | 9,063,366 |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | | | | | | | |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| Total liabilities | 87,520 | | - | | 3,223,525 | | 3,311,045 |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | | | | | | | |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| Tangible assets additions | 3,803 | | 3,398 | | 36,294 | | 43,495 |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| Intangible assets | 10,839 | | 766 | | 45,223 | | 56,828 |
| additions | | | | | | | |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | | | | | | | |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
| Total capital expenditure | 14,642 | | 4,164 | | 81,517 | | 100,323 |
+---------------------------+-------------+--+-----------+--+---------------+--+---------------+
It is considered that there is no material difference in the information
regarding segment assets and liabilities as at 31 December 2008 and capital
expenditure in the year then ended, either based on the locations of customers
or the locations of assets, no further disclosure is presented.
Segmental information for the year ended 31 December 2007:
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| | America | | EMEA | | World | | Total |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| | US$ | | US$ | | US$ | | US$ |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| Revenue from external | 2,017,356 | | 1,505,697 | | 813,606 | | 4,336,659 |
| customers | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| Revenue | 2,017,356 | | 1,505,697 | | 813,606 | | 4,336,659 |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| Operating loss | (502,666) | | (375,175) | | (202,726) | | (1,080,567) |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| Net finance gains | | | | | | | 131,903 |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| Loss before taxation | | | | | | | (948,664) |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| Taxation | | | | | | | - |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| | | | | | | | |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
| Loss for the year | | | | | | | (948,664) |
+---------------------------+---------------+--+---------------+--+---------------+--+-------------+
Other segment items included in the income statement for the year ended 31
December 2007:
+---------------------------+------------+--+-----------+--+-----------+--+----------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+---------------------------+------------+--+-----------+--+-----------+--+----------+
| | America | | EMEA | | World | | Total |
+---------------------------+------------+--+-----------+--+-----------+--+----------+
| | US$ | | US$ | | US$ | | US$ |
+---------------------------+------------+--+-----------+--+-----------+--+----------+
| | | | | | | | |
+---------------------------+------------+--+-----------+--+-----------+--+----------+
| Depreciation | 15,030 | | 2,062 | | 53,325 | | 70,417 |
+---------------------------+------------+--+-----------+--+-----------+--+----------+
| Amortisation | 253 | | - | | 18,098 | | 18,351 |
+---------------------------+------------+--+-----------+--+-----------+--+----------+
| Bad debts | 63,949 | | - | | 2,287 | | 66,236 |
+---------------------------+------------+--+-----------+--+-----------+--+----------+
Information regarding segment assets and liabilities as at 31 December 2007 and
capital expenditure in the year then ended, based on the location of customers:
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| | North | | | | Rest of | | |
| | | | | | the | | |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| | America | | EMEA | | World | | Total |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ | | US$ |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| | | | | | | | |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| Total assets | 184,896 | | 6,718 | | 8,511,735 | | 8,703,349 |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| | | | | | | | |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| Total liabilities | 107,772 | | - | | 2,331,523 | | 2,439,295 |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| | | | | | | | |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| Tangible assets additions | 63,279 | | 7,928 | | 145,184 | | 216,391 |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| Intangible assets | 2,022 | | - | | 41,322 | | 43,344 |
| additions | | | | | | | |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| | | | | | | | |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
| Total capital expenditure | 65,301 | | 7,928 | | 186,506 | | 259,735 |
+---------------------------+----------+--+----------+--+-----------+--+-----------+
It is considered that there is no material difference in the information
regarding segment assets and liabilities as at 31 December 2007 and capital
expenditure in the year then ended, either based on the locations of customers
or the locations of assets, no further disclosure is presented.
Secondary reporting format - business segments
The Group's business segments are support and maintenance, hosting, software
customisation and implementation and software licensing. These business segments
are the basis on which the Group reports its secondary segment information, as
presented below:
Segmental information for the year ended 31 December 2008:
+----------------+--+------------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | | Software | | | | |
+-------------------+------------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | customisation | | | | |
+-------------------+------------+--+-----------+----------------+--+-----------+--+-----------+
| | Support | | | | and | | Software | | |
| | and | | | | | | | | |
+----------------+---------------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | Hosting | implementation | | licensing | | Total |
| | maintenance | | | | | | | |
+----------------+---------------+--+-----------+----------------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ | | US$ | | US$ |
+-------------------+------------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | | | | | | |
+-------------------+------------+--+-----------+--+-------------+--+-----------+--+-----------+
| Segment revenue | 892,602 | | 2,139,048 | | 334,071 | | 2,986,803 | | 6,352,524 |
| from external | | | | | | | | | |
| customers | | | | | | | | | |
+-------------------+------------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | | | | | | |
+-------------------+------------+--+-----------+--+-------------+--+-----------+--+-----------+
| Total capital | 14,095 | | 33,779 | | 5,277 | | 47,172 | | 100,323 |
| expenditure | | | | | | | | | |
+-------------------+------------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | | | | | | |
+-------------------+------------+--+-----------+--+-------------+--+-----------+--+-----------+
| Total carrying | 1,273,506 | | 3,051,854 | | 476,631 | | 4,261,375 | | 9,063,366 |
| amounts of | | | | | | | | | |
| segment assets | | | | | | | | | |
+-------------------+------------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | | | | | | |
+----------------+--+------------+--+-----------+--+-------------+--+-----------+--+-----------+
Segmental information for the year ended 31 December 2007:
+----------------+--+-----------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | | Software | | | | |
+-------------------+-----------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | customisation | | | | |
+-------------------+-----------+--+-----------+----------------+--+-----------+--+-----------+
| | Support and | | | | and | | Software | | |
+----------------+--------------+--+-----------+--+-------------+--+-----------+--+-----------+
| | maintenance | | Hosting | implementation | | licensing | | Total |
+----------------+--------------+--+-----------+----------------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ | | US$ | | US$ |
+-------------------+-----------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | | | | | | |
+-------------------+-----------+--+-----------+--+-------------+--+-----------+--+-----------+
| Segment revenue | 575,108 | | 1,383,146 | | 268,058 | | 2,110,347 | | 4,336,659 |
| from external | | | | | | | | | |
| customers | | | | | | | | | |
+-------------------+-----------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | | | | | | |
+-------------------+-----------+--+-----------+--+-------------+--+-----------+--+-----------+
| Total capital | 34,445 | | 82,841 | | 16,055 | | 126,394 | | 259,735 |
| expenditure | | | | | | | | | |
+-------------------+-----------+--+-----------+--+-------------+--+-----------+--+-----------+
| | | | | | | | | | |
+-------------------+-----------+--+-----------+--+-------------+--+-----------+--+-----------+
| Total carrying | 1,154,199 | | 2,775,871 | | 537,972 | | 4,235,307 | | 8,703,349 |
| amounts of | | | | | | | | | |
| segment assets | | | | | | | | | |
+----------------+--+-----------+--+-----------+--+-------------+--+-----------+--+-----------+
3. NET FINANCE (COSTS)/GAINS
+------------------------------------------------+-------------+--+-------------+
| | 2008 | | 2007 |
+------------------------------------------------+-------------+--+-------------+
| | US$ | | US$ |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| Bank interest income | 199,571 | | 156,012 |
+------------------------------------------------+-------------+--+-------------+
| Finance lease charge | (335) | | (333) |
+------------------------------------------------+-------------+--+-------------+
| Foreign exchange loss | (707,031) | | (23,776) |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| | (507,795) | | 131,903 |
+------------------------------------------------+-------------+--+-------------+
4. LOSS BEFORE TAXATION
Loss before taxation is arrived after charging -
+------------------------------------------------+-------------+--+-------------+
| | 2008 | | 2007 |
+------------------------------------------------+-------------+--+-------------+
| | US$ | | US$ |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| Depreciation of property, plant and equipment | 101,733 | | 70,417 |
+------------------------------------------------+-------------+--+-------------+
| Amortisation of computer software | 47,803 | | 18,351 |
+------------------------------------------------+-------------+--+-------------+
| Loss on disposal of property, plant and | 511 | | 1,563 |
| equipment | | | |
+------------------------------------------------+-------------+--+-------------+
| Statutory audit services | 48,943 | | 47,433 |
+------------------------------------------------+-------------+--+-------------+
| Taxation services | 4,977 | | 4,340 |
+------------------------------------------------+-------------+--+-------------+
| Operating lease rentals | | | |
+------------------------------------------------+-------------+--+-------------+
| - land and buildings | 170,082 | | 126,849 |
+------------------------------------------------+-------------+--+-------------+
| Research and development | | | |
+------------------------------------------------+-------------+--+-------------+
| - current year expenditure | 1,388,717 | | 995,946 |
+------------------------------------------------+-------------+--+-------------+
| Foreign exchange loss | 707,031 | | 23,776 |
+------------------------------------------------+-------------+--+-------------+
5. LOSS PER SHARE
The calculation of the basic and diluted loss per share is based on the
following data:
+------------------------------------------------+-------------+--+-------------+
| | 2008 | | 2007 |
+------------------------------------------------+-------------+--+-------------+
| | US$ | | US$ |
+------------------------------------------------+-------------+--+-------------+
| Loss used for the 'Loss per share' | | | |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| Loss for the purpose of basic loss per share | (588,662) | | (948,664) |
| being net loss attributable to equity | | | |
| shareholders of the parent | | | |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| Loss for the purpose of diluted loss per share | (588,662) | | (948,664) |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| | 2008 | | 2007 |
+------------------------------------------------+-------------+--+-------------+
| | US$ | | US$ |
+------------------------------------------------+-------------+--+-------------+
| Loss used for the 'Loss per share before | | | |
| exceptional costs' | | | |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| (Loss)/earnings for the purpose of basic loss | (588,662) | | 146,303 |
| before exceptional costs per share being net | | | |
| loss attributable to equity shareholders of | | | |
| the parent less exceptional costs of | | | |
| US$1,094,967 in 2007 related to the admission | | | |
| to AIM | | | |
+------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------+-------------+--+-------------+
| (Loss)/earnings before exceptional costs for | (588,662) | | 146,303 |
| the purpose of diluted earnings per share | | | |
+------------------------------------------------+-------------+--+-------------+
+------------------------------------------+--------+--+-------------+--+-------------+
| | 2008 | | 2007 |
+------------------------------------------------------+-------------+--+-------------+
| Number of shares | | | |
+------------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------------+-------------+--+-------------+
| Weighted average number of ordinary and preferred | 24,885,980 | | 23,089,650 |
| shares for the purpose of basic loss per share | | | |
+------------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------------+-------------+--+-------------+
| Effect of dilutive potential ordinary and preferred | | | |
| shares: | | | |
+------------------------------------------------------+-------------+--+-------------+
| Share options | 1,239,475 | | 1,453,451 |
+------------------------------------------------------+-------------+--+-------------+
| | | | |
+------------------------------------------------------+-------------+--+-------------+
| Weighted average number of ordinary and preferred | 26,125,455 | | 24,543,101 |
| shares for the purpose of dilutive loss per share | | | |
+------------------------------------------------------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-----------+-------------+--+-------------+
| | | 2008 | | 2007 |
+------------------------------------------+-----------+-------------+--+-------------+
| | | US$ | | US$ |
+------------------------------------------+-----------+-------------+--+-------------+
| Loss per share: | | | | |
+------------------------------------------+-----------+-------------+--+-------------+
| Basic | | (0.02) | | (0.04) |
+------------------------------------------+-----------+-------------+--+-------------+
| Diluted | | (0.02) | | (0.04) |
+------------------------------------------+-----------+-------------+--+-------------+
| | | | | |
+------------------------------------------+-----------+-------------+--+-------------+
| (Loss)/Earnings per share before exceptional | | | | |
| costs: | | | | |
+---------------------------------------------------+--+-------------+--+-------------+
| Basic | | (0.02) | | 0.01 |
+------------------------------------------+-----------+-------------+--+-------------+
| Diluted | | (0.02) | | 0.01 |
+------------------------------------------+--------+--+-------------+--+-------------+
6. CASH AND CASH EQUIVALENTS
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| | The Group | | The Company |
+---------------------------+--------------------------+--+--------------------------+
| | 2008 | | 2007 | | 2008 | | 2007 |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ | | US$ |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Cash at bank and in hand | | | | | | | |
| | | | | | | | |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| US dollars | 30,121 | | 21,042 | | 150 | | 285 |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Sterling pounds | 8 | | 461 | | - | | - |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Euros | 8 | | 156 | | - | | - |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Hong Kong dollars | 46,645 | | 35,242 | | 13 | | - |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Other currencies | 609 | | - | | - | | - |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Short-term bank deposits | | | | | | | |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| US dollars | 762,966 | | 422,108 | | 96,813 | | 16,376 |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Sterling pounds | 1,440,063 | | 2,471,592 | | 1,361,220 | | 2,249,561 |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Euros | 2,879,317 | | 2,533,537 | | 2,022,428 | | 2,533,511 |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Hong Kong dollars | 178,211 | | 227,039 | | 52,600 | | 96,988 |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| Other currencies | 457 | | 568 | | - | | - |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| | | | | | | | |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
| | 5,338,405 | | 5,711,745 | | 3,533,224 | | 4,896,721 |
+---------------------------+-----------+--+-----------+--+-----------+--+-----------+
Short-term deposits are made for varying periods depending on the cash
requirements of the Group, and earn interest at market short-term deposits rates
of between 0.75% and 5.20%.
7. CASH FLOWS FROM OPERATING ACTIVITIES
+-----------------------------------------------------+---------------+--+---------------+
| | 2008 | | 2007 |
+-----------------------------------------------------+---------------+--+---------------+
| | US$ | | US$ |
+-----------------------------------------------------+---------------+--+---------------+
| | | | |
+-----------------------------------------------------+---------------+--+---------------+
| Loss before taxation | (588,662) | | (948,664) |
+-----------------------------------------------------+---------------+--+---------------+
| Exceptional costs of Placing and Admission to AIM | - | | 1,094,967 |
+-----------------------------------------------------+---------------+--+---------------+
| Equity settled share-based payments | 38,911 | | 133,094 |
+-----------------------------------------------------+---------------+--+---------------+
| Depreciation | 101,733 | | 70,417 |
+-----------------------------------------------------+---------------+--+---------------+
| Amortisation | 47,803 | | 18,351 |
+-----------------------------------------------------+---------------+--+---------------+
| Loss on disposal of property, plant and equipment | 511 | | 1,563 |
+-----------------------------------------------------+---------------+--+---------------+
| Finance lease charges | 335 | | 333 |
+-----------------------------------------------------+---------------+--+---------------+
| Interest income | (199,571) | | (156,012) |
+-----------------------------------------------------+---------------+--+---------------+
| Share of loss of an associate | 24,041 | | - |
+-----------------------------------------------------+---------------+--+---------------+
| Share of loss of a jointly controlled entity | 150,403 | | - |
+-----------------------------------------------------+---------------+--+---------------+
| Unrealised exchange loss | 707,031 | | 23,776 |
+-----------------------------------------------------+---------------+--+---------------+
| | | | |
+-----------------------------------------------------+---------------+--+---------------+
| Operating cash flows before changes in working | 282,535 | | 237,825 |
| capital | | | |
+-----------------------------------------------------+---------------+--+---------------+
| | | | |
+-----------------------------------------------------+---------------+--+---------------+
| Decrease in inventories | 10,584 | | 2,370 |
+-----------------------------------------------------+---------------+--+---------------+
| Increase in receivables | (517,368) | | (334,051) |
+-----------------------------------------------------+---------------+--+---------------+
| Increase in payables | 873,093 | | 681,370 |
+-----------------------------------------------------+---------------+--+---------------+
| | | | |
+-----------------------------------------------------+---------------+--+---------------+
| Cash flows generated from operating activities | 648,844 | | 587,514 |
+-----------------------------------------------------+---------------+--+---------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFFFMMSUSEDL
|