TIDMACG
RNS Number : 9165S
Accuma Group PLC
28 May 2009
?
Accuma Group plc
('Accuma' or 'the Group')
Final results for the year ended 31 December 2008
Chairman's statement
In the interim statement released on 18 September 2008, the Board reported to
the market that the level of new IVA cases in the financial period ended 30 June
2008 was significantly lower than numbers achieved in prior periods, partly due
to the general market conditions affecting the numbers of IVAs approved by
lenders and partly due to the streamlining by Accuma of its IVA division.
However, as such, following a thorough strategic review, and recognising the
fact that the IVA books have remained well run and profitable businesses, the
Board concluded that it should divest the IVA books as the public equity markets
were not ascribing a fair value to these businesses.
As announced on 1 May 2009, Accuma's insolvency division, comprising Wilson
Phillips Limited and Accuma Insolvency Practitioners Limited entered into
conditional agreements in relation to the sale of their business and certain of
their assets for an aggregate consideration of GBP5.6m. As a result of this
proposed disposal, and in accordance with IFRS, these businesses are shown as
discontinued operations in the financial statements. Revenue for the year for
these two subsidiaries on this basis was approximately GBP5m with EBITDA of
GBP1m. The General Meeting to approve the disposal takes place on 1 June 2009,
as detailed in the circular to shareholders dated 14 May 2009.
In accordance with IFRS, continuing operations in the Group's accounts comprise
Byrom & Keeley Financial Services Limited, Thomas Charles & Co Limited and also
include the Group's overheads. Revenue and gross profit, on this basis, for the
year is GBP3.72m and GBP1.12m respectively, giving a gross profit margin of
approximately 30 per cent.
The EBITDA loss for the period was GBP0.87m comprising GBP1.09 million profit in
Byrom & Keeley Financial Services Limited, head office overheads of GBP1.25
million and a GBP0.73m loss in Thomas Charles & Co. Ltd.
Cash inflow from operations for the year to 31 December 2008, was GBP2.78m. (5
months 31 December 2007: GBP0.45m). However as a result of deferred
consideration paid earlier in the year to the vendors of Loan Line (Holdings)
Limited (GBP2.8m) and Byrom & Keeley Financial Services Limited(GBP1.45m), there
was an overall net outflow of GBP1.79m. The cash balance at the year end was
GBP1.58m (31 December 2007: GBP3.37m). As the profit threshold (as stipulated by
the Byrom & Keeley Financial Services Limited acquisition agreement) of GBP1.35m
was not achieved, and accordingly the final earn-out payment did not become
payable.There are no further earn-out payments due within the Group.
Following a review of the carrying value of intangible assets, the Board has
written down the carrying value of the goodwill relating to Byrom & Keeley
Financial Services Limited in the Group's balance sheet to GBP3.5m and as a
result the Group has incurred an impairment charge of GBP6.58m in its results
for the year ended 31 December 2008. This has resulted in a loss after tax for
the year of GBP7.49m.
Operational review
Following the disposal of the IVA businesses the Group, the existing operations
in the Groups accounts in accordance with IFRS accounting, will comprise Byrom &
Keeley Financial Services Limited, Thomas Charles & Co Limited and also includes
the Group's overheads.
Insolvency Division
We have previously commented in detail on the impact of significant changes to
the IVA sector over the past eighteen months. Thomas Charles & Co Limited, as
part of our IVA division was impacted by those changes as its primary income was
received from marketing services and set-up costs of new IVAs. In line with
Group strategy to reduce direct marketing expenditure Thomas Charles & Co
Limited ceased to trade in the first quarter of 2009, thus stemming any
continuing losses in this division
Debt management division
Byrom & Keeley Financial Services Limited, the informal debt management
solutions business, produced an EBITDA of GBP1.09m (5 months 31 December 2007:
GBP0.59m).
Strategic changes that were made within the Insolvency business have impacted on
this division, primarily as a result of the material reduction in direct
marketing expenditure from which Byrom & Keeley Financial Services Limited had
historically derived considerable benefit. In addition, following a
deterioration in the number of enquiries generated from a major lead supplier
towards the end of 2008, alternative lead suppliers were engaged. This led to a
reduction in new debt management cases signed on a monthly basis from an
historic average of 301 in the first half of 2008 to 181 in the second half of
2008. The average, on a monthly basis, of new management cases for the first
quarter 2009 was 145.
Loan broking division
As a result of the difficulties faced by the sub-prime market caused by the
banking crisis, the loan broking division, Loan Line (Holdings) Limited, was
placed into liquidation on 14 October 2008. The impact in the financial
statements, as shown in discontinuing operations is a loss of GBP0.63m.
Outlook
The economic climate continues to favour debt management businesses as a more
viable option for creditors and debtors alike, and recent further agreements for
the supply of clients will increase our average monthly new client signings. We
remain confident of the prospects for this division.
The Group remains debt-free and at the end of April had a cash position of
GBP1.9m, which is expected to increase to approximately GBP6m following
completion of the disposal of the insolvency division.
The funds realised from the disposals will be retained by the Group whilst the
Board considers its strategic options, and the best way of delivering value to
shareholders.
Charles Taylor
28 May 2009
For further information please contact:
+--------------------+--------------------+--------------------+--------------------+
| Accuma Group plc | +44 (0)161 751 6787 |
| Charles Howson, Chief Executive | |
| | |
+-----------------------------------------+-----------------------------------------+
| FinnCap (Nominated Adviser and Broker) | +44 (0)20 7600 1658 |
| Marc Young / Geoff Nash | |
| | |
+-----------------------------------------+-----------------------------------------+
| Bankside Consultants | +44 (0) 207 367 8888 |
| Simon Rothschild/Oliver Winters | |
| | |
+--------------------+--------------------+--------------------+--------------------+
CONSOLIDATED INCOME STATEMENT
YEAR ENDED 31 DECEMBER 2008
+--------------------------------------+----+-----------------+----+--+------------------+
| | | Year ended | | 5 months |
| | | | | ended |
+--------------------------------------+----+----------------------+--+------------------+
| | | 31 December 2008 | | 31 December |
| | | | | 2007 |
+--------------------------------------+----+----------------------+--+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| | | GBP | | GBP |
+--------------------------------------+----+-----------------+-------+------------------+
| REVENUE | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| Existing operations | | 3,720,888 | | 1,695,352 |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| Cost of sales | | (2,605,766) | | (986,698) |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| Gross profit | | 1,115,122 | | 708,654 |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| Administrative expenses | | (1,988,975) | | (1,614,041) |
+--------------------------------------+----+-----------------+-------+------------------+
| EARNINGS BEFORE INTEREST, TAX, | | | | |
| DEPreciation, AMORTISATION AND | | | | |
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| IMPAIRMENT LOSSES | | (873,853) | | (905,387) |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| Depreciation | | (92,662) | | (53,500) |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| Amortisation | | (11,985) | | (4,963) |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| Provision for impairment losses | | (6,580,289) | | (11,774,764) |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| OPERATING LOSS | | (7,558,789) | | (12,738,614) |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| Finance income | | 57,454 | | 92,371 |
+--------------------------------------+----+-----------------+-------+------------------+
| Finance costs | | (27,624) | | (60,913) |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| LOSS BEFORE TAX | | (7,528,959) | | (12,707,156) |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| TAXATION | | 199,170 | | 253,186 |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| LOSS FOR THE YEAR FROM CONTINUING | | (7,329,789) | | (12,453,970) |
| OPERATIONS | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| Discontinued operations and | | (164,429) | | (2,076,130)) |
| non-current assets held for sale | | | | |
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| LOSS FOR THE YEAR | | (7,494,218) | | (14,530,100) |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| LOSS PER SHARE - basic and diluted | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| From continuing operations | | (22.42)p | | (38.09)p |
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| From discontinued operations | | (0.50)p | | (6.34)p |
| | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| From continuing and discontinued | | (22.92)p | | (44.43)p |
| operations | | | | |
+--------------------------------------+----+-----------------+-------+------------------+
| | | | | |
+--------------------------------------+----+-----------------+----+--+------------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 DECEMBER 2008
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| | Share | | Share | Other | Share | Accumulated | Total |
| | capital | | premium | reserve | option | Losses | |
| | | | | | reserve | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| | GBP | | GBP | GBP | GBP | GBP | GBP |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| Balance at 31 July | 3,269,673 | | 28,407,877 | (1,262,595) | 367,251 | 2,118,316 | 32,900,522 |
| 2007 | | | | | | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| Prior period | - | | - | - | - | (123,939) | (123,939) |
| adjustment | | | | | | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| At 31 July 2007 as | 3,269,673 | | 28,407,877 | (1,262,595) | 367,521 | 1,994,377 | 32,776,583 |
| restated | | | | | | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| Changes in equity | | | | | | | |
| for five month | | | | | | | |
| period ended 31 | | | | | | | |
| December 2007 | | | | | | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| Loss for the period | - | | - | - | - | (14,530,100) | (14,530,100) |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| Share option charge | - | | - | - | 28,977 | - | 28,977 |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| At 1 January 2008 | 3,269,673 | | 28,407,877 | (1,262,595) | 396,228 | (12,535,723) | 18,275,460 |
| as restated | | | | | | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| Changes in equity | | | | | | | |
| for year ended 31 | | | | | | | |
| December 2008 | | | | | | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| Loss for the year | - | | - | - | - | (7,494,218) | (7,494,218) |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| Share option charge | - | | - | - | 21,666 | - | 21,666 |
| | | | | | | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| Balance at 31 | 3,269,673 | | 28,407,877 | (1,262,595) | 417,894 | (20,029,941) | 10,802,908 |
| December 2008 | | | | | | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
| | | | | | | | |
+---------------------+-----------+--+------------+---------------+---------+----------------+--------------+
Other Reserve
The other reserve at 31 December 2008 is a merger reserve created on the
establishment of Accuma Insolvency Practitioners Ltd as a subsidiary of Accuma
Group PLC.
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2008
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | |
+-------------------------------+------+------------------------------+---+------------------------------+
| | | 31 December 2008 | | 31 December 2007 |
+-------------------------------+------+------------------------------+---+------------------------------+
| | | | | | | (restated) |
+-------------------------------+------+---------------+-+------------+---+------------------------------+
| ASSETS | | GBP | | GBP | | GBP | | GBP |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| NON-CURRENT ASSETS | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Intangible assets | | | | 8,627,251 | | | | 15,829,001 |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Property, plant and equipment | | | | 443,956 | | | | 789,630 |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Deferred tax asset | | | | 561,847 | | | | 309,807 |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Total non-current assets | | | | 9,633,054 | | | | 16,928,438 |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| CURRENT ASSETS | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Trade and other receivables | | 788,164 | | | | 6,805,148 | | |
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Cash and cash equivalents | | 1,577,135 | | | | 3,367,340 | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Current assets held for | | 1,387,550 | | | | - | | |
| resale | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Total current assets | | | | 3,752,849 | | | | 10,172,488 |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| TOTAL ASSETS | | | | 13,385,903 | | | | 27,100,926 |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| EQUITY AND LIABILITIES | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| CURRENT LIABILITIES | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Trade and other payables | | 1,605,090 | | | | 2,831,596 | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Financial liabilities | | 89,215 | | | | 2,259,027 | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Provision for onerous lease | | 750,000 | | | | 510,687 | | |
| commitment | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Current tax liabilities | | 111,965 | | | | 246,709 | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Total current liabilities | | | | 2,556,270 | | | | 5,848,019 |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| NON-current liabilities | | | | | | | | |
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Contingent consideration | | - | | | | 2,898,536 | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Financial liabilities | | 26,725 | | | | 78,911 | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Total non-current liabilities | | | | 26,725 | | | | 2,977,447 |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Total liabilities | | | | 2,582,995 | | | | 8,825,466 |
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| CAPITAL AND RESERVES - EQUITY | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Share capital | | 3,269,673 | | | | 3,269,673 | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Share premium account | | 28,407,877 | | | | 28,407,877 | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Share option reserve | | 417,894 | | | | 396,228 | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Accumulated losses | | (20,029,941) | | | | (12,535,723) | | |
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Other reserve | | (1,262,595) | | | | (1,262,595) | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| Total Equity | | | | 10,802,908 | | | | 18,275,460 |
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| | | | | | | | | |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
| TOTAL EQUITY AND LIABILITIES | | | | 13,385,903 | | | | 27,100,926 |
+-------------------------------+------+---------------+-+------------+---+--------------+--+------------+
CONSOLIDATED CASH FLOW STATEMENT
YEAR ENDED 31 DECEMBER 2008
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | Year ended | | 5 months |
| | | | | | ended |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | 31 December | | 31 December |
| | | | 2008 | | 2007 |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | (restated) |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| OPERATING ACTIVITIES | | | GBP | | GBP |
+ +------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------------------------------------------+------+----------------+----------------+---------------+
| Loss from continuing operations | | | (7,558,789) | | (12,738,614) |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Loss from discontinued operations | | | (164,429) | | (2,076,130) |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Impairment provision | | | 6,580,289 | | 11,774,764 |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Depreciation | | | 585,182 | | 202,016 |
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Amortisation | | | 11,985 | | 4,963 |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Decrease in trade and other receivables | | | 4,582,319 | | 1,901,165 |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| (Decrease)/Increase in trade and other | | | (1,281,103) | | 1,351,339 |
| payables | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Provision for share options | | | 21,666 | | 28,977 |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Cash inflow from operations | | | 2,777,120 | | 448,480 |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Interest paid | | | (26,387) | | (55,857) |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Income taxes paid | | | - | | (110,000) |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Interest element of finance leases | | | (1,237) | | (5,056) |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Net cash inflow from operating | | | 2,749,496 | | 277,567 |
| activities | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Payments to acquire property plant and | | | (201,946) | | (136,100) |
| equipment | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Interest received | | | 57,454 | | 92,371 |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Acquisition of subsidiaries | | | (2,133,034) | | - |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Net cash used in investing activitites | | | (2,277,526) | | (43,729) |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Cash flow from financing activities | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Capital element of finance lease | | | | | |
| agreements | | | (107,972) | | (33,040) |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Repayment of loan notes | | | | | |
| | | | (2,154,203) | | - |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Cash deposit in respect of loan notes | | | - | | (164,960) |
| issued | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Net cash used in financing activities | | | (2,262,175) | | (198,000) |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Net change in cash equivalents | | | (1,790,205) | | 35,838 |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Cash and cash equivalents at the | | | 3,367,340 | | 3,331,502 |
| beginning of the year | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| Cash and cash equivalents at the end of | | | 1,577,135 | | 3,367,340 |
| the year | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
| | | | | | |
+------------------------------------------+------+----------------+----------------+---------------+---------------+
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2008
1. TAXATION
+----------------------------------------------+---+-----------+-------+---+-----------+
| | Year ended 31 | | 5 months |
| | December 2008 | | ended 31 |
| | | | December |
| | | | 2007 |
+----------------------------------------------+---------------+-------+---------------+
| | GBP | | GBP |
+----------------------------------------------+---------------+-------+---------------+
| Current tax expense | | | |
+----------------------------------------------+---------------+-------+---------------+
| UK corporation tax credit on income for the year | - | | (8,739) |
| | | | |
+--------------------------------------------------+-----------+-----------+-----------+
| Tax charge relating to prior periods | 52,870 | | 62,939 |
+--------------------------------------------------+-----------+-----------+-----------+
| | 52,870 | | 54,200 |
+--------------------------------------------------+-----------+-----------+-----------+
| Deferred tax credit | | | |
+--------------------------------------------------+-----------+-----------+-----------+
| Changes in deferred tax balances arising from: | | | |
+--------------------------------------------------+-----------+-----------+-----------+
| Origination or reversal of timing differences | (231,548) | | (307,386) |
+--------------------------------------------------+-----------+-----------+-----------+
| Changes in tax rate | (20,492) | | |
+--------------------------------------------------+-----------+-----------+-----------+
| | | | |
+--------------------------------------------------+-----------+-----------+-----------+
| Income tax credit | (199,170) | | (253,186) |
+--------------------------------------------------+-----------+-----------+-----------+
| | | | |
+----------------------------------------------+---+-----------+-------+---+-----------+
+------------------------------------------------------+---------------------------+---+-----------------------+
| |
| The credit for the year can be reconciled to the loss per the income statement as follows; |
+--------------------------------------------------------------------------------------------------------------+
| | Year ended 31 | | 5 months ended 31 |
| | December 2008 | | December 2007 |
+------------------------------------------------------+---------------------------+---+-----------------------+
| | GBP | | GBP |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Loss for the year from continuing operations | (7,528,959) | | (12,707,156) |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Loss for the year from discontinued operations | (164,429) | | (2,076,130) |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Loss for the year from operations | (7,693,388) | | (14,783,286) |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Loss on ordinary activities multiplied by the rate | | | |
| of corporation tax of 28% (2007: 30%) | (2,154,149) | | (4,434,986) |
+------------------------------------------------------+---------------------------+---+-----------------------+
| | | | |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Adjusted for the effects of; | | | |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Impairment provision | | | |
| | 1,842,481 | | 3,532,429 |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Expenses not deductible for tax purposes | 59,628 | | 383,932 |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Losses of overseas operations not available for | - | | 202,500 |
| relief in UK | | | |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Adjustment to prior period tax charge | 52,870 | | 62,939 |
+------------------------------------------------------+---------------------------+---+-----------------------+
| Current tax credit for the year | (199,170) | | (253,186) |
+------------------------------------------------------+---------------------------+---+-----------------------+
| | | | |
+------------------------------------------------------+---------------------------+---+-----------------------+
2. DISCONTINUED OPERATIONS
In February 2008, a subsidiary undertaking, Assist Financial Solutions Limited,
went into creditors voluntary liquidation.
In October 2008 Loan Line (Holdings) Limited and LL Processing (UK) Limited went
into creditors voluntary liquidation.
On 30 April 2009 a conditional offer was accepted from Grant Thornton for the
IVA books of Wilson Phillips Limited and Accuma Insolvency Practitioners
Limited. The IVA books were available for immediate sale in their present
condition at the year end and the sale was considered highly probable by the
board of directors.
The results of the discontinued operations which have been included in the
consolidated income statement are as follows:
+------------------+---------+----------+----------+---------+-----------+
| Year ended | | | Wilson | | |
+------------------+---------+----------+----------+---------+-----------+
| 31 December 2008 | AFS | Loanline | Phillips | AIP | Total |
| | | | | | |
+------------------+---------+----------+----------+---------+-----------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------+---------+----------+----------+---------+-----------+
| | | | | | |
+------------------+---------+----------+----------+---------+-----------+
| Revenue | 8 | 1,498 | 2,400 | 2,670 | 6,576 |
+------------------+---------+----------+----------+---------+-----------+
| Cost of sales | (12) | (1,319) | (1,442) | (836) | (3,609) |
+------------------+---------+----------+----------+---------+-----------+
| Gross profit | (4) | 179 | 958 | 1,834 | 2,967 |
+------------------+---------+----------+----------+---------+-----------+
| Administrative | (42) | (814) | (508) | (1,279) | (2,643) |
| expenses | | | | | |
+------------------+---------+----------+----------+---------+-----------+
| Depreciation | - | - | (96) | (391) | (487) |
+------------------+---------+----------+----------+---------+-----------+
| Interest income | - | 2 | 16 | - | 18 |
+------------------+---------+----------+----------+---------+-----------+
| Interest expense | - | - | (7) | (12) | (19) |
| | | | | | |
+------------------+---------+----------+----------+---------+-----------+
| Loss for | (46) | (633) | 363 | 152 | (164) |
| discontinued | | | | | |
| operations | | | | | |
+------------------+---------+----------+----------+---------+-----------+
+------------------+---------+----------+----------+---------+------------+
| 5 months ended | | | Wilson | | |
| | | | | | |
+------------------+---------+----------+----------+---------+------------+
| 31 December 2007 | AFS | Loanline | Phillips | AIP | Total |
| | | | | | |
+------------------+---------+----------+----------+---------+------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------+---------+----------+----------+---------+------------+
| | | | | | |
+------------------+---------+----------+----------+---------+------------+
| Revenue | 66 | 2,025 | 907 | 853 | 3,851 |
+------------------+---------+----------+----------+---------+------------+
| Cost of sales | (156) | (1,744) | (541) | (1,175) | (3,616) |
+------------------+---------+----------+----------+---------+------------+
| Gross profit | (90) | 281 | 366 | (322) | 235 |
+------------------+---------+----------+----------+---------+------------+
| Administrative | (166) | (656) | (244) | (1,007) | ( 2,073) |
| expenses | | | | | |
+------------------+---------+----------+----------+---------+------------+
| Depreciation | (1) | - | (19) | (128) | (148) |
+------------------+---------+----------+----------+---------+------------+
| Interest income | - | 6 | 6 | 3 | 15 |
+------------------+---------+----------+----------+---------+------------+
| Interest expense | - | (92) | (4) | (9) | (105) |
| | | | | | |
+------------------+---------+----------+----------+---------+------------+
| Loss for | (257) | (461) | 105 | (1,463) | (2,076) |
| discontinued | | | | | |
| operations | | | | | |
+------------------+---------+----------+----------+---------+------------+
Analysis of cash flow movements:
+------------------+---------+----------+----------+--------+---------+
| Year ended | | | Wilson | | |
+------------------+---------+----------+----------+--------+---------+
| 31 December 2008 | AFS | Loanline | Phillips | AIP | Total |
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------+---------+----------+----------+--------+---------+
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
| Operating | (13) | (369) | 316 | (163) | (229) |
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
| Investing | - | 2 | 16 | - | 18 |
+------------------+---------+----------+----------+--------+---------+
| Financing | - | (29) | (22) | (87) | (138) |
+------------------+---------+----------+----------+--------+---------+
| | (13) | (396) | 310 | (250) | (349) |
+------------------+---------+----------+----------+--------+---------+
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
+------------------+---------+----------+----------+--------+---------+
| 5 months ended | | | Wilson | | |
+------------------+---------+----------+----------+--------+---------+
| 31 December 2007 | AFS | Loanline | Phillips | AIP | Total |
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------+---------+----------+----------+--------+---------+
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
| Operating | (64) | (359) | (45) | 25 | (443) |
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
| Investing | - | 6 | (10) | (91) | (95) |
+------------------+---------+----------+----------+--------+---------+
| Financing | - | - | (4) | (9) | (13) |
+------------------+---------+----------+----------+--------+---------+
| | (64) | (353) | (59) | (75) | (551) |
+------------------+---------+----------+----------+--------+---------+
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
| | | | | | |
+------------------+---------+----------+----------+--------+---------+
Analysis of assets and liabilities:
+--------------------+--------+-------+--------+----------+-------+-------+-------+---------+
| Year ended | | | Wilson | | |
+--------------------+--------+----------------+----------+---------------+-----------------+
| 31 December 2008 | AFS | Loanline | Phillips | AIP | Total |
| | | | | | |
+--------------------+--------+----------------+----------+---------------+-----------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------+--------+----------------+----------+---------------+-----------------+
| | | | | | |
+--------------------+----------------+--------+------------------+---------------+---------+
| Property, plant & | - | - | - | - | - |
| equipment | | | | | |
+--------------------+----------------+--------+------------------+---------------+---------+
| Other receivables | - | - | 978 | 410 | 1,388 |
+--------------------+----------------+--------+------------------+---------------+---------+
| Cash & cash | - | - | - | - | - |
| equivalents | | | | | |
+--------------------+----------------+--------+------------------+---------------+---------+
| | - | - | 978 | 410 | 1,388 |
+--------------------+----------------+--------+------------------+---------------+---------+
| | | | | | |
+--------------------+----------------+--------+------------------+---------------+---------+
| Other current | - | - | - | - | - |
| liabilities | | | | | |
+--------------------+----------------+--------+------------------+---------------+---------+
| | | | | | |
+--------------------+----------------+--------+------------------+---------------+---------+
| | | | | | |
+--------------------+--------+-------+--------+----------+-------+-------+-------+---------+
+--------------------+--------+-------+-----------+----------+-------+-------+-------+---------+
| 5 months ended | | | Wilson | | |
+--------------------+--------+-------------------+----------+---------------+-----------------+
| 31 December 2007 | AFS | Loanline | Phillips | AIP | Total |
| | | | | | |
+--------------------+--------+-------------------+----------+---------------+-----------------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 |
+--------------------+--------+-------------------+----------+---------------+-----------------+
| | | | | | |
+--------------------+----------------+-----------+------------------+---------------+---------+
| Property, plant & | 4 | 2 | 119 | 650 | 775 |
| equipment | | | | | |
+--------------------+----------------+-----------+------------------+---------------+---------+
| Other receivables | 24 | 806 | 1,412 | 1,975 | 4,217 |
+--------------------+----------------+-----------+------------------+---------------+---------+
| Cash & cash | 14 | 396 | 263 | 305 | 978 |
| equivalents | | | | | |
+--------------------+----------------+-----------+------------------+---------------+---------+
| | 42 | 1,204 | 1,794 | 2,930 | 5,970 |
+--------------------+----------------+-----------+------------------+---------------+---------+
| | | | | | |
+--------------------+----------------+-----------+------------------+---------------+---------+
| Other current | (13) | (1,226) | (99) | (667) | (2,005) |
| liabilities | | | | | |
+--------------------+----------------+-----------+------------------+---------------+---------+
| | | | | | |
+--------------------+----------------+-----------+------------------+---------------+---------+
| | | | | | |
+--------------------+--------+-------+-----------+----------+-------+-------+-------+---------+
3. LOSS PER SHARE
Loss per share statistics disclosed are calculated by dividing the losses
attributable to ordinary share holders by the weighted average number of shares
in issue during the year.
+--------------------------------------------+--------------+----+--------------+
| Basic and diluted | Year ended | | 5 months |
| | 31 December | | ended |
| | 2008 | | 31 December |
| | | | 2007 |
+--------------------------------------------+--------------+----+--------------+
| | GBP | | GBP |
+--------------------------------------------+--------------+----+--------------+
| Loss for the year - continuing operations | (7,329,789) | | (12,453,970) |
+--------------------------------------------+--------------+----+--------------+
| Loss for the year - discontinued | (164,429) | | (2,076,130) |
| operations | | | |
+--------------------------------------------+--------------+----+--------------+
| Loss for the year - continuing and | (7,494,218) | | (14,530,100) |
| discontinued operations | | | |
| | | | |
+--------------------------------------------+--------------+----+--------------+
| Weighted average number of shares | 32,696,734 | | 32,696,734 |
+--------------------------------------------+--------------+----+--------------+
| Loss per share - continuing operations | 22.42p | | 38.09p |
+--------------------------------------------+--------------+----+--------------+
| Loss per share - discontinued operations | 0.50p | | 6.34p |
+--------------------------------------------+--------------+----+--------------+
| Loss per share - continuing and | 22.92p | | 44.43p |
| discontinued operations | | | |
+--------------------------------------------+--------------+----+--------------+
There are 580,295 potentially issuable shares that have not been included in
a diluted EPS calculation as they are anti-dilutive.
4. STATUS OF FINANCIAL INFORMATION
The financial information set out in this report does not constitute the
company's statutory accounts for the year ended 31 December 2008 but is derived
from those accounts. Statutory accounts for the year ended 31 December 2008 will
be delivered to the Registrar of Companies shortly. The auditors have reported
on those accounts: their report was unqualified, did not include reference to
any matters which the auditors drew attention by way of emphasis without
qualifying their report and did not contain statements under the Companies Act
2006, s498(2) or (3).
5. The Report and Financial Statements for the year ended 31 December 2008
will be sent to shareholders in due course.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAESXAESNEAE
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