TIDMILI
RNS Number : 6934W
Imagelinx PLC
03 August 2009
?
Imagelinx plc (the "Company")
Interim Results
Highlights
* Half year turnover of GBP5.6m, up by GBP1.2m (28%) on the comparable period in
the prior year.
* Half-year operating profit of GBP513,000, compared to GBP28,000 in the
equivalent period in the prior year.
* Earnings before interest, depreciation, goodwill and tax GBP781,000 (2008
GBP300,000).
* Net assets now GBP7.2m compared with GBP6.8m at the end of the prior half year.
* Net cash generated from operating activities in the first half was GBP246,000
compared with cash utilised by operating activities of GBP240,000 in the
equivalent period last year.
* Earnings per share of 0.17p, compared to 0.01p in the comparable period in 2008
(excluding the benefit in 2008 of the exceptional gain relating to the pension
scheme).
Operating review
As we stated at the Annual General Meeting, we were seeing revenue exceeding
expectations and this has continued throughout the first half of the year. The
growth has been driven by higher spend by existing clients, assisted by some
currency benefit compared to the first half of last year. Whilst we have seen
some growth also from new clients this year, we expect this will have a greater
impact on the second half of 2009 than the first half.
Nearly all of our clients have increased their expenditure this year and we have
also provided additional services to clients. We have seen positive cashflow of
GBP39,000 in the first half of the year and our net bank debt position at 30th
June was GBP328,000. We expect to repay our remaining loan note of GBP161,000
and to be entirely debt free by the end of this quarter, not withstanding any
investment opportunities. In addition we have recently changed our bank
facility provider from Royal Bank of Scotland to Lloyds. This will provide the
company with a larger facility of GBP1,000,000 compared to the GBP750,000
available previously.
Our gross margin has risen from 46% to 51% and seen an increase of GBP847,000 on
the equivalent period in the prior year, and our operating profit margin has
risen from 1% to 9% for the first half of 2009.
There is no tax charge for the first half and after interest of GBP26,000, the
basic earnings per share (EPS) was 0.17p. While the EPS in 2008 was 1.58p, this
included the benefit of the disposal of the LTGG pension fund deficit. On a
comparable basis, the EPS has improved by 0.16p. We are not expecting a tax
charge for the year as a whole due to tax losses brought forward.
During the first half of 2009, we have renewed our current business with certain
clients, won additional business with some of our clients and we are now in the
process of establishing our presence in Eastern Europe on behalf of one of our
clients.
We see the opportunity to take advantage of the significant changes in the
market we intend to increase our sales presence in the USA and in Europe.
We have also re-branded all of our subsidiaries as Imagelinx, reflecting the
continuing integration of the group.
The Board is grateful to all colleagues who have worked hard to deliver the
substantial increase in turnover. On 2nd July 2009, the company announced that
Albert Klein would become Non-Executive Chairman of the Group with effect from
1st September 2009. The Board is pleased that the company can continue to count
on Albert's support and thank Albert for all of his endeavours and for his
vision for Imagelinx over the last decade.
Alistair Rae, Chief Executive said "The second half of the year has commenced
strongly and while our business has little short term visibility, nonetheless
the activity remains high for the third quarter and we believe shareholders will
be pleased with the outcome for the full year."
Enquiries:
Imagelinx plc
Alistair Rae, CEO
Tel: +44 (0) 7736 883934
Seymour Pierce Limited
Sarah Jacobs
Tel: +44 (0)20 7107 8000
CONSOLIDATED INCOME STATEMENT
+---------------------------------+-------+---------------+---------------+---------------+
| | | (Unaudited) | (Unaudited) | (Audited) |
+---------------------------------+-------+---------------+---------------+---------------+
| | | 6 months | 6 months | Year |
+---------------------------------+-------+---------------+---------------+---------------+
| | Notes | ended 30 | ended 30 | ended 31 |
| | | June | June | December |
+---------------------------------+-------+---------------+---------------+---------------+
| | | 2009 | 2008 | 2008 |
+---------------------------------+-------+---------------+---------------+---------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------+-------+---------------+---------------+---------------+
| cONTINUING OPERATIONS | | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| Revenue | 3 | 5,648 | 4,401 | 9,246 |
+---------------------------------+-------+---------------+---------------+---------------+
| Cost of sales | | (2,774) | (2,374) | (4,980) |
+---------------------------------+-------+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+---------------------------------+-------+---------------+---------------+---------------+
| GROSS PROFIT | | 2,874 | 2,027 | 4,266 |
+---------------------------------+-------+---------------+---------------+---------------+
| | | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| Other operating income | | - | - | 110 |
+---------------------------------+-------+---------------+---------------+---------------+
| Administration expenses | | (2,267) | (1,899) | (3,915) |
+---------------------------------+-------+---------------+---------------+---------------+
| Other operating expenses | | (94) | (100) | (451) |
+---------------------------------+-------+---------------+---------------+---------------+
| | | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+---------------------------------+-------+---------------+---------------+---------------+
| OPERATING RESULT BEFORE | | 513 | 28 | 10 |
| EXCEPTIONAL GAIN | | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| | | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| Exceptional gain relating to | | - | 4,527 | 4,600 |
| pension scheme | | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+---------------------------------+-------+---------------+---------------+---------------+
| OPERATING RESULT | | 513 | 4,555 | 4,610 |
+---------------------------------+-------+---------------+---------------+---------------+
| | | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| Finance income | | - | - | 8 |
+---------------------------------+-------+---------------+---------------+---------------+
| Finance costs | | (26) | (10) | (35) |
+---------------------------------+-------+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+---------------------------------+-------+---------------+---------------+---------------+
| PROFIT BEFORE TAX | | 487 | 4,545 | 4,583 |
+---------------------------------+-------+---------------+---------------+---------------+
| | | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| Tax income | | - | - | (17) |
+---------------------------------+-------+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+---------------------------------+-------+---------------+---------------+---------------+
| | | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| RESULT FOR THE PERIOD | | 487 | 4,545 | 4,566 |
+---------------------------------+-------+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+---------------------------------+-------+---------------+---------------+---------------+
| Profit per ordinary share | 4 | | | |
+---------------------------------+-------+---------------+---------------+---------------+
| Basic | | 0.17p | 1.57p | 1.58p |
+---------------------------------+-------+---------------+---------------+---------------+
| Diluted | | 0.16p | 1.50p | 1.49p |
+---------------------------------+-------+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+---------------------------------+-------+---------------+---------------+---------------+
consolidated STATEMENT OF TOTAL RECOGNISED income AND expenditure
+-----------------------------------+----+---------------+---------------+---------------+
| | | (Unaudited) | (Unaudited) | (Audited) |
+-----------------------------------+----+---------------+---------------+---------------+
| | | 6 months | 6 months | Year |
+-----------------------------------+----+---------------+---------------+---------------+
| | | ended 30 | ended 30 | ended 31 |
| | | June | June | December |
+-----------------------------------+----+---------------+---------------+---------------+
| | | 2009 | 2008 | 2008 |
+-----------------------------------+----+---------------+---------------+---------------+
| | | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------------+----+---------------+---------------+---------------+
| | | | | |
+-----------------------------------+----+---------------+---------------+---------------+
| Exchange differences on | | (56) | - | (2) |
| translation of foreign operations | | | | |
+-----------------------------------+----+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+-----------------------------------+----+---------------+---------------+---------------+
| NET INCOME RECOGNISED DIRECTLY TO | | (56) | - | (2) |
| EQUITY | | | | |
+-----------------------------------+----+---------------+---------------+---------------+
| Profit for the period | | 487 | 4,545 | 4,566 |
+-----------------------------------+----+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+-----------------------------------+----+---------------+---------------+---------------+
| Total recognised income and | | 431 | 4,545 | 4,564 |
| expense for the period | | | | |
+-----------------------------------+----+---------------+---------------+---------------+
| | | _____________ | _____________ | _____________ |
+-----------------------------------+----+---------------+---------------+---------------+
| | | | | |
+-----------------------------------+----+---------------+---------------+---------------+
| | | | | |
+-----------------------------------+----+---------------+---------------+---------------+
CONSOLIDATED BALANCE SHEET
+---------------------------------------+--------------+-------------+------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+---------------------------------------+--------------+-------------+------------+
| | 30 | 30 | 31 |
| | June | June | December |
+---------------------------------------+--------------+-------------+------------+
| | 2009 | 2008 | 2008 |
+---------------------------------------+--------------+-------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+--------------+-------------+------------+
| NON-CURRENT ASSETS | | | |
+---------------------------------------+--------------+-------------+------------+
| Goodwill | 4,384 | 4,384 | 4,384 |
+---------------------------------------+--------------+-------------+------------+
| Other intangible assets | 491 | 689 | 591 |
+---------------------------------------+--------------+-------------+------------+
| Property, plant and equipment | 919 | 1,090 | 950 |
+---------------------------------------+--------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+--------------+-------------+------------+
| | 5,794 | 6,163 | 5,925 |
+---------------------------------------+--------------+-------------+------------+
| CURRENT ASSETS | | | |
+---------------------------------------+--------------+-------------+------------+
| Inventories | 70 | 61 | 62 |
+---------------------------------------+--------------+-------------+------------+
| Trade and other receivables | 3,198 | 2,532 | 2,953 |
+---------------------------------------+--------------+-------------+------------+
| Cash and cash equivalents | 152 | 396 | 296 |
+---------------------------------------+--------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+--------------+-------------+------------+
| | 3,420 | 2,989 | 3,311 |
+---------------------------------------+--------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+--------------+-------------+------------+
| TOTAL ASSETS | 9,214 | 9,152 | 9,236 |
+---------------------------------------+--------------+-------------+------------+
| | | | |
+---------------------------------------+--------------+-------------+------------+
| CURRENT LIABILITIES | | | |
+---------------------------------------+--------------+-------------+------------+
| Trade and other payables | (1,274) | (1,678) | (1,461) |
+---------------------------------------+--------------+-------------+------------+
| Obligations under finance leases | (60) | (95) | (89) |
+---------------------------------------+--------------+-------------+------------+
| Bank overdrafts and loans | (480) | (394) | (663) |
+---------------------------------------+--------------+-------------+------------+
| Loan notes | (161) | (100) | (185) |
+---------------------------------------+--------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+--------------+-------------+------------+
| | (1,975) | (2,267) | (2,398) |
+---------------------------------------+--------------+-------------+------------+
| NON-CURRENT LIABILITIES | | | |
+---------------------------------------+--------------+-------------+------------+
| Other payables | - | - | (15) |
+---------------------------------------+--------------+-------------+------------+
| Obligations under finance leases | - | - | (15) |
+---------------------------------------+--------------+-------------+------------+
| Loan notes | - | (150) | - |
+---------------------------------------+--------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+--------------+-------------+------------+
| | - | (150) | (30) |
+---------------------------------------+--------------+-------------+------------+
| | | | |
+---------------------------------------+--------------+-------------+------------+
| TOTAL LIABILITiES | (1,975) | (2,417) | (2,428) |
+---------------------------------------+--------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+--------------+-------------+------------+
| NET ASSETS | 7,239 | 6,735 | 6,808 |
+---------------------------------------+--------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+--------------+-------------+------------+
| EQUITY | | | |
+---------------------------------------+--------------+-------------+------------+
| Share capital | 14,452 | 14,452 | 14,452 |
+---------------------------------------+--------------+-------------+------------+
| Share premium account | 38,644 | 38,644 | 38,644 |
+---------------------------------------+--------------+-------------+------------+
| Translation reserve | (106) | (28) | (30) |
+---------------------------------------+--------------+-------------+------------+
| Profit and loss account | (45,751) | (46,333) | (46,258) |
+---------------------------------------+--------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+--------------+-------------+------------+
| | 7,239 | 6,735 | 6,808 |
+---------------------------------------+--------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+--------------+-------------+------------+
CONSOLIDATED CASH FLOW STATEMENT
+--------------------------------+--------------+--------------+---------------+
| | (Unaudited) | (Unaudited) | (Audited) |
+--------------------------------+--------------+--------------+---------------+
| | 6 months | 6 months | Year |
+--------------------------------+--------------+--------------+---------------+
| | ended 30 | ended 30 | ended 31 |
| | June | June | December |
+--------------------------------+--------------+--------------+---------------+
| | 2009 | 2008 | 2008 |
+--------------------------------+--------------+--------------+---------------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------+--------------+--------------+---------------+
| | | | |
+--------------------------------+--------------+--------------+---------------+
| NET CASH from operating | 246 | (240) | (221) |
| activitieS | | | |
+--------------------------------+--------------+--------------+---------------+
| | _________ | _________ | _________ |
+--------------------------------+--------------+--------------+---------------+
| Investing activities | | | |
+--------------------------------+--------------+--------------+---------------+
| Interest received | - | - | 8 |
+--------------------------------+--------------+--------------+---------------+
| Purchases of property, plant | (137) | (95) | (149) |
| and equipment | | | |
+--------------------------------+--------------+--------------+---------------+
| Proceeds from sale of property | - | - | 26 |
| plant and equipment | | | |
+--------------------------------+--------------+--------------+---------------+
| Acquisition of subsidiary | - | (14) | (502) |
+--------------------------------+--------------+--------------+---------------+
| | ________ | ________ | _________ |
+--------------------------------+--------------+--------------+---------------+
| Net cash used in investing | (137) | (109) | (617) |
| activities | | | |
+--------------------------------+--------------+--------------+---------------+
| | _________ | _________ | _________ |
+--------------------------------+--------------+--------------+---------------+
| Financing activities | | | |
+--------------------------------+--------------+--------------+---------------+
| Interest paid | (26) | (10) | (19) |
+--------------------------------+--------------+--------------+---------------+
| Repayment of obligations under | (44) | (67) | (97) |
| finance leases | | | |
+--------------------------------+--------------+--------------+---------------+
| Repayment of loans | - | (100) | (200) |
+--------------------------------+--------------+--------------+---------------+
| New loans | - | - | 185 |
+--------------------------------+--------------+--------------+---------------+
| | _________ | _________ | _________ |
+--------------------------------+--------------+--------------+---------------+
| Net cash used from financing | (70) | (177) | (131) |
| activities | | | |
+--------------------------------+--------------+--------------+---------------+
| | _________ | _________ | _________ |
+--------------------------------+--------------+--------------+---------------+
| INCREASE/(DECREASE) in cash | 39 | (526) | (969) |
+--------------------------------+--------------+--------------+---------------+
| | _________ | _________ | _________ |
+--------------------------------+--------------+--------------+---------------+
1 Basis of Preparation
This interim announcement was approved by the Board of Directors on 31 July
2009.
The financial information set out in this interim report does not constitute
statutory accounts within the meaning of section 435 of the Companies Act 2006.
The group's statutory financial statements for the year ended 31 December 2008,
prepared under International Financial Reporting Standards as issued by the IASB
and adopted by the European Union (IFRS), have been filed with the Registrar of
Companies. The auditor's report on those financial statements was unmodified and
did not contain a statement under Section 498(2) or (3) (accounting records or
returns inadequate, accounts not agreeing with records and returns or failure to
obtain necessary information and explanations) of the Companies Act 2006.
The directors continually monitor the financial position of the group, taking
into account the latest forecasts of future cash flows and analyses of these
forecasts, sensitised in respect of the key uncertainties facing the group's
ability to generate cash. The directors consider that the group's ability to
continue as a going concern is dependant on the timing of actual versus targeted
sales in Imagelinx while it is building up the client base for its services.
2Accounting Policies
The accounting policies used in this interim report are those set out in the
financial statements for the year ended 31 December 2008.
3segmental analysis
Imagelinx plc operates in only one division, that of packaging graphics
services, with all significant operations being based either in the UK, Germany
or the United States. The segmental analysis of operations is as follows:
+---------------------------------------+-------------+-------------+------------+
| Segmental analysis by activity | (Unaudited) | (Unaudited) | (Audited) |
| | | | |
+---------------------------------------+-------------+-------------+------------+
| | 30 | 30 | 31 |
| | June | June | December |
+---------------------------------------+-------------+-------------+------------+
| | 2009 | 2008 | 2008 |
+---------------------------------------+-------------+-------------+------------+
| | GBP'000 | GBP'000 | GBP'000 |
+---------------------------------------+-------------+-------------+------------+
| | | | |
+---------------------------------------+-------------+-------------+------------+
| REVENUE BY ORIGIN | | | |
+---------------------------------------+-------------+-------------+------------+
| UK | 4,480 | 3,549 | 7,467 |
+---------------------------------------+-------------+-------------+------------+
| US | 1,168 | 852 | 1,779 |
+---------------------------------------+-------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+-------------+-------------+------------+
| Total Revenue | 5,648 | 4,401 | 9,246 |
+---------------------------------------+-------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+-------------+-------------+------------+
| | | | |
+---------------------------------------+-------------+-------------+------------+
| SEGMENT RESULT | | | |
+---------------------------------------+-------------+-------------+------------+
| UK | 493 | 9 | (211) |
+---------------------------------------+-------------+-------------+------------+
| Germany | (250) | (201) | (33) |
+---------------------------------------+-------------+-------------+------------+
| US | 270 | 220 | 254 |
+---------------------------------------+-------------+-------------+------------+
| | | | |
+---------------------------------------+-------------+-------------+------------+
| Exceptional gain relating to pension | - | 4,527 | 4,600 |
| scheme | | | |
+---------------------------------------+-------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+-------------+-------------+------------+
| Operating result | 513 | 4,555 | 4,610 |
+---------------------------------------+-------------+-------------+------------+
| Finance income | - | - | 8 |
+---------------------------------------+-------------+-------------+------------+
| Finance costs | (26) | (10) | (35) |
+---------------------------------------+-------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+-------------+-------------+------------+
| Profit before tax | 487 | 4,545 | 4,583 |
+---------------------------------------+-------------+-------------+------------+
| | _________ | _________ | _________ |
+---------------------------------------+-------------+-------------+------------+
4 PROFIT per ordinary share
The calculation of basic and diluted earnings per share is based on the
following data.
Earnings:
+--------------------------------------+--------------+-------------+-----------+
| | (Unaudited) | (Unaudited) | (Audited) |
+--------------------------------------+--------------+-------------+-----------+
| | 30 | 30 | 31 |
| | June | June | December |
+--------------------------------------+--------------+-------------+-----------+
| | 2009 | 2008 | 2008 |
+--------------------------------------+--------------+-------------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------------------------------+--------------+-------------+-----------+
| Profit for the year | 487 | 4,545 | 4,566 |
+--------------------------------------+--------------+-------------+-----------+
| | | | |
+--------------------------------------+--------------+-------------+-----------+
Number of shares
+-------------------------------------+--------------+-------------+-------------+
| | 30 June 2009 | 30 June | 31 |
| | | 2008 | December |
| | | | 2008 |
+-------------------------------------+--------------+-------------+-------------+
| | No. | No. | No. |
+-------------------------------------+--------------+-------------+-------------+
| Weighted average number of ordinary | 289,038,635 | 289,038,635 | 289,038,635 |
| shares for the purposes of basic | | | |
| earnings per share | | | |
+-------------------------------------+--------------+-------------+-------------+
| Effect of dilutive potential | 16,959,129 | 13,416,202 | 16,916,202 |
| ordinary shares Share options | | | |
+-------------------------------------+--------------+-------------+-------------+
| Weighted average number of ordinary | 305,997,764 | 302,454,837 | 305,954,837 |
| shares for the purposes of diluted | | | |
| earnings per share | | | |
+-------------------------------------+--------------+-------------+-------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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