TIDMNETD
RNS Number : 0390Z
NetDimensions (Holdings) Limited
15 September 2009
?
NetDimensions (Holdings) Limited
("NetDimensions", the "Group" or the "Company")
Interim Results for the six months ended 30 June 2009
NetDimensions (AIM: NETD), a provider of performance, knowledge and learning
management systems, announces its Interim Results for the six months ended 30
June 2009, a period in which the Company continued to deliver good growth.
Financial Highlights
* Revenues up 3% to US$3.05 million (2008: US$2.94 million)
* Pre-tax profit of US$0.41 million (2008: US$0.09 million) *
* Cash flow from operating activities of US$1.33 million (2008: US$0.63 million)
* Cash balance of US$6.82 million with no borrowings
Operational Highlights
* Added 26 new clients with notable success in the EMEA region
* Released the latest version of the Company's flagship product, The Enterprise
Knowledge Platform 5.6
* Added new staff to the Company's dedicated sales and professional services
teams, as well as further expansion of its Philippines operations
Roger Durn, Chairman of NetDimensions commented:
"I am pleased to present another excellent set of results. We have delivered
enhanced revenue growth and have added 26 new clients in the first half of the
calendar year. We have continued to generate cash, increase revenues and invest
for future growth while managing costs in a challenging economic environment.
NetDimensions has traditionally performed better in the second half of the year
and with continued growth in our target markets the Board is confident the
Company will continue to expand its client base in the second half of 2009 as
well as see further revenue and profit growth."
* Of which US$0.17 million derives from unrealized foreign exchange rate
changes.
Enquiries:
+----------------------+------------------+--------------------------------------+
| NetDimensions | Jay Shaw | +852 2122 4500 |
| | Jeffery Cheung | investor-relations@netdimensions.com |
| | Robert Torio | |
+----------------------+------------------+--------------------------------------+
| Arden Partners plc | Fred Walsh | +44 (0) 20 7398 1651 |
| (Nomad & Broker) | Matthew Armitt | fred.walsh@arden-partners.com |
| | | matthew.armitt@arden-partners.com |
| | | |
+----------------------+------------------+--------------------------------------+
| Walbrook PR Limited | Ben Knowles | +44 (0) 20 7933 8788 |
| | Paul McManus | ben.knowles@walbrookpr.com |
| | | paul.mcmanus@walbrookpr.com |
+----------------------+------------------+--------------------------------------+
CHAIRMAN'S STATEMENT
Introduction
We are pleased to present our results for the six months to 30 June 2009. The
Company made good progress in the first half of the year with sales increased by
3% to US$3.05 million (2008: US$2.94 million), which led to a profit of US$0.41
million for the period. Trading performance was driven by repeat business and
sales to 26 new clients.
Financial Review
For the six months to 30 June 2009, total revenues increased by 3% to US$3.05
million. Hosting revenue increased 33% to US$1.30 million from US$0.98 million
in the same period last year. In addition, we have been successful in growing
our revenues in the EMEA region, an area in which we have placed great emphasis
in our sales and marketing strategy. EMEA generated 42.6% of total revenues
compared to 28.9% in the corresponding period in 2008.
The Company has continued to focus on cost management and the development of
direct and channel sales capabilities.
The Group's cash position remains strong with cash generated from its operating
activities of US$1.33 million during the first half of fiscal 2009. As at 30
June 2009, the Company had cash of US$6.82 million with no borrowings. Deferred
revenue at 30 June 2009 increased 29% to US$2.0 million from US$1.5 million in
the period last year.
The Board is currently not recommending the payment of a dividend.
Operations Review
In the six months under review, we added 26 new clients including: Mace Group;
The Chartered Institute of Environmental Health; BMW South Africa; Florida
Nursery, Growers & Landscape Association (FNGLA); Airports Company South Africa;
Metropolitan Housing Partnership; SITA (Pty) Ltd; and CCS Coca Cola SABCO.
New client wins were generated through direct and partner-led sales channels
throughout the world. Many of the new clients operate in highly regulated,
compliance driven environments and aim to generate efficiencies through the
application of NetDimensions products.
The Company continued to focus on strengthening our services and support
capabilities in terms of adding more staff to our dedicated sales and
professional services teams, and to our Philippines operations.
Current Trading and Outlook
In this uncertain global economic environment we expect that operating
conditions will remain challenging for the rest of 2009. However, NetDimensions
has a robust business model and as an expanding and cash generative business,
the Company remains in a good position to grow. We have maintained a healthy
cash level, with cash balances on 30 June 2009 of US$6.82 million held in a mix
of US Dollars, Sterling and Euros (31 December 2008: US$5.34 million). This
equates to approximately 16.5p in cash per share at 30 June 2009 currency rates
(31 December 2008: 14.7p in cash per share).
Historically, the Group achieves the greater part of its annual revenue and
profit in the second half of the year and we anticipate this trend to carry on.
We believe our target markets will continue to show demand despite the current
economic uncertainties, particularly in highly regulated and compliance driven
industries and also in outwardly focused, extended enterprise deployments.
The six months under review were a successful period with the Company recording
a good number of new customer wins and encouraging revenue growth. The Board is
confident the Company is well positioned to continue to develop the
NetDimensions platform.
Roger Durn
Chairman of the Board
15 September 2009
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | Unaudited | | Unaudited | | Audited |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | 6 months | | 6 | | 12 |
| | | to | | months to | | months to |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | Note | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | US$ | | US$ | | US$ |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Revenue | 3 | 3,046,251 | | 2,943,398 | | 6,352,524 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Cost of sales | | (113,839) | | (160,739) | | (421,645) |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Gross profit | | 2,932,412 | | 2,782,659 | | 5,930,879 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Administrative expenses | | (2,621,777) | | (3,008,483) | | (5,837,302) |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Operating profit/(loss) | 4 | 310,635 | | (225,824) | | 93,577 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Net finance gains/(costs) | | 178,307 | | 319,477 | | (507,795) |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Share of loss of an associate | 6 | (54,059) | | - | | (24,041) |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Share of loss of a jointly | 7 | (23,727) | | - | | (150,403) |
| controlled entity | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Profit/(loss) on ordinary | | 411,156 | | 93,653 | | (588,662) |
| activities before taxation | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Taxation | | - | | - | | - |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Profit/(loss) for the period | | 411,156 | | 93,653 | | (588,662) |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Attributable to: | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Equity shareholders of the | | 411,156 | | 93,653 | | (588,662) |
| Company | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Earnings/(loss) per share: | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Basic | 5 | US$0.016 | | US$0.004 | | US$(0.024) |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Diluted | 5 | US$0.016 | | US$0.004 | | US$(0.023) |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
The notes form an integral part of these condensed consolidated interim
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2009
+-----------------------------------+------+------------+--+------------+--+------------+
| | | Unaudited | | Unaudited | | Audited |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | 6 | | 6 | | 12 months |
| | | months to | | months to | | to |
+-----------------------------------+------+------------+--+------------+--+------------+
| | Note | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | US$ | | US$ | | US$ |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| Profit/(loss) for the period | | 411,156 | | 93,653 | | (588,662) |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| Other comprehensive income: | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| Exchange differences on | | (7) | | - | | 37,702 |
| translation of foreign operations | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| Share of other comprehensive | | - | | - | | 316 |
| income of an associate | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| Other comprehensive income for | | (7) | | - | | 38,018 |
| the year | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| Total comprehensive income for | | 411,149 | | 93,653 | | (550,644) |
| the year | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| Total comprehensive income | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| attributable to: | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| Equity shareholders of the | | 411,149 | | 93,653 | | (550,644) |
| Company | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
| | | | | | | |
+-----------------------------------+------+------------+--+------------+--+------------+
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2009
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | Unaudited | | Unaudited | | Audited |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | Note | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | US$ | | US$ | | US$ |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| ASSETS | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Non-current assets | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Property, plant and equipment | | 113,049 | | 166,520 | | 144,394 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Intangible assets | | 35,119 | | 68,459 | | 49,790 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Interest in an associate | 6 | 172,216 | | - | | 226,275 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Interest in a jointly controlled | 7 | 25,870 | | 199,992 | | 49,597 |
| entity | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | 346,254 | | 434,971 | | 470,056 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Current assets | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Inventories | | 500 | | 29,386 | | - |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Trade and other receivables | | 1,468,571 | | 1,682,509 | | 3,254,905 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Cash and cash equivalents | | 6,816,944 | | 6,401,855 | | 5,338,405 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | 8,286,015 | | 8,113,750 | | 8,593,310 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| TOTAL ASSETS | | 8,632,269 | | 8,548,721 | | 9,063,366 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| EQUITY AND LIABILITIES | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Equity attributable to equity | | | | | | |
| holders of the Company | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Share capital | 8 | 24,939 | | 24,889 | | 24,914 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Share premium | | 11,116,871 | | 11,116,871 | | 11,116,871 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Foreign currency translation | | 32,800 | | (5,211) | | 32,807 |
| reserve | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Accumulated losses | | (5,008,002) | | (4,743,098) | | (5,422,271) |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Total equity | | 6,166,608 | | 6,393,451 | | 5,752,321 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Non-current liabilities | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Obligations under finance leases | | 342 | | 1,699 | | 1,026 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Current liabilities | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Trade and other payables | | 2,463,951 | | 2,152,212 | | 3,308,651 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Obligations under finance leases | | 1,368 | | 1,359 | | 1,368 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | 2,465,319 | | 2,153,571 | | 3,310,019 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| Total liabilities | | 2,465,661 | | 2,155,270 | | 3,311,045 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| TOTAL EQUITY AND LIABILITIES | | 8,632,269 | | 8,548,721 | | 9,063,366 |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+-------------+--+-------------+
The notes form an integral part of these condensed consolidated interim
financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2009 (UNAUDITED)
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| | | | | | Foreign | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| | | | | | | | | | |
| | | | | | currency | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| | Share | | Share | | translation | | Accumulated | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| | capital | | premium | | reserve | | losses | | Total |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| | US$ | | US$ | | US$ | | | | US$ |
| | | | | | | | US$ | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| At 1 January 2009 | 24,914 | | 11,116,871 | | 32,807 | | (5,422,271) | | 5,752,321 |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| Profit for the | - | | | | - | | 411,156 | | 411,156 |
| period | | | - | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| Other comprehensive | | | | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| Income: | | | | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| Currency translation | - | | | | (7) | | - | | (7) |
| differences | | | - | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| Total comprehensive | - | | | | (7) | | 411,156 | | 411,149 |
| income | | | - | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| Issue of shares | 25 | | | | - | | - | | 25 |
| | | | - | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| Equity settled | - | | - | | - | | 3,113 | | 3,113 |
| share-based payments | | | | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
| At 30 June 2009 | 24,939 | | 11,116,871 | | 32,800 | | (5,008,002) | | 6,166,608 |
+----------------------+----------+--+------------------------+--+--------------+--+-------------+--+-----------+
FOR THE SIX MONTHS ENDED 30 JUNE 2008 (UNAUDITED)
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| | | | | | Foreign | | | | |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| | | | | | currency | | | | |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| | Share | | Share | | translation | | Accumulated | | |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| | capital | | premium | | reserve | | losses | | Total |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| | US$ | | US$ | | US$ | | US$ | | US$ |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| At 1 January 2008 | 24,864 | | 11,116,871 | | (5,211) | | (4,872,470) | | 6,264,054 |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| Profit for the | - | | - | | - | | 93,653 | | 93,653 |
| period | | | | | | | | | |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| Issue of shares | 25 | | - | | - | | - | | 25 |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| Equity settled | - | | - | | - | | 35,719 | | 35,719 |
| share-based payments | | | | | | | | | |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| | | | | | | | | | |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
| At 30 June 2008 | 24,889 | | 11,116,871 | | (5,211) | | (4,743,098) | | 6,393,451 |
+----------------------+----------+--+-------------+--+-------------+--+-------------+--+-----------+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2008 (AUDITED)
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| | | | | | Foreign | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| | | | | | currency | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| | Share | | Share | | translation | | Accumulated | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| | capital | | premium | | | | losses | | Total |
| | | | | | reserve | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| | US$ | | US$ | | US$ | | US$ | | US$ |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| At 1 January 2008 | 24,864 | | 11,116,871 | | (5,211) | | (4,872,470) | | 6,264,054 |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| Loss for | - | | - | | - | | (588,662) | | (588,662) |
| the year | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| Other | | | | | | | | | |
| comprehensive | | | | | | | | | |
| income: | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| Currency | - | | - | | 37,702 | | - | | 37,702 |
| translation | | | | | | | | | |
| differences | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| Share of reserve | - | | - | | 316 | | - | | 316 |
| movements of an | | | | | | | | | |
| | | | | | | | | | |
| associate | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| Total | - | | - | | 38,018 | | (588,662) | | (550,644) |
| comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| Issue of shares | 50 | | - | | - | | - | | 50 |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| Equity settled | - | | - | | - | | 38,861 | | 38,861 |
| share-based | | | | | | | | | |
| payments | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| | | | | | | | | | |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
| At 31 December 2008 | 24,914 | | 11,116,871 | | 32,807 | | (5,422,271) | | 5,752,321 |
+-------------------------+----------+--+------------+--+-------------+--+-------------+--+-----------+
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
+----------------------------------+--+----+-------------+--+------------+--+------------+
| | | Unaudited | | Unaudited | | Audited |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | 6 months | | 6 | | 12 months |
| | | to | | months to | | to |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | Note | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | US$ | | US$ | | US$ |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Cash flows from operating | 9 | 1,331,129 | | 630,282 | | 648,844 |
| activities | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Cash flows from in investing | | | | | | |
| activities | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Purchase of property, plant and | | (27,431) | | (17,364) | | (43,495) |
| equipment | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Purchase of intangible assets | | (9,120) | | (42,759) | | (56,828) |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Interest received | | 5,327 | | 112,311 | | 199,571 |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Investment in an associate | | - | | - | | (250,000) |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Investment in a jointly | | - | | (199,992) | | (200,000) |
| controlled entity | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Net cash used in investing | | (31,224) | | (147,804) | | (350,752) |
| activities | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Cash flows from financing | | | | | | |
| activities | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Finance lease charges | | (168) | | (167) | | (335) |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Repayments of borrowings and | | (684) | | (679) | | (1,368) |
| finance leases | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Net cash used in financing | | (852) | | (846) | | (1,703) |
| activities | | | | | | |
+-------------------------------------+----+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Net increase in cash and cash | | 1,299,053 | | 481,632 | | 296,389 |
| equivalents | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Cash and cash equivalents at | | 5,338,405 | | 5,711,745 | | 5,711,745 |
| beginning of the period | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Effect of foreign exchange rate | | 179,486 | | 208,478 | | (669,729) |
| changes, net | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| Cash and cash equivalents at end | | 6,816,944 | | 6,401,855 | | 5,338,405 |
| of the period | | | | | | |
+----------------------------------+-------+-------------+--+------------+--+------------+
| | | | | | | |
+----------------------------------+--+----+-------------+--+------------+--+------------+
The notes form an integral part of these condensed consolidated interim
financial statements.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1.GENERAL INFORMATION
The Company was incorporated in the Cayman Islands as a limited liability
company under the Companies Law (2000) Revision on 10 July 2000. The registered
office of the Company is located at P.O. Box 309, Ugland House, South Church
Street, George Town, Grand Cayman, Cayman Islands, British West Indies. Its
principal place of business is located at 17/F., Siu On Centre, 188 Lockhart
Road, Wan Chai, Hong Kong.
The principal activities of the Company and its subsidiaries (hereinafter
collectively referred to as the "Group") are licensing of computer software and
the provision of related services. The principal activity of the Company is
investment holding.
The Company's shares were admitted to trading on the Alternative Investment
Market ("AIM") of the London Stock Exchange. These condensed consolidated
interim financial statements are presented in United States Dollars, unless
otherwise stated, and were approved for issue by the Board of Directors on 15
September 2009.
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)Basis of preparation
The Company has a financial year end date of 31 December. These condensed
consolidated interim financial statements for the six months ended 30 June 2009
have been prepared in accordance with International Accounting Standard 34,
"Interim Financial Reporting". These condensed consolidated interim financial
statements should be read in conjunction with the annual financial statements of
the Group for the year ended 31 December 2008.
(b)Significant accounting policies
The condensed consolidated interim financial statements have been prepared under
the historical cost convention except for certain financial assets and
liabilities which are stated at fair values.
The accounting policies and methods of computation used in the preparation of
these condensed consolidated interim financial statements are consistent with
those used in the annual financial statements for the year ended 31 December
2008 except for the adoption of standards, amendments and interpretations issued
by the International Accounting Standards Board for annual periods beginning 1
January 2009 as described below.
IFRS 8 Operating Segments
This Standard requires disclosure of information about the Group's operating
segments and replaces the requirement to determine primary (business) and
secondary (geographical) reporting segments of the Group. Adoption of this
Standard did not have any effect on the financial position or performance of the
Group. The Group determined that the operating segments were the same as the
business segments previously identified under IAS 14 Segment Reporting.
IAS 1 Revised Presentation of Financial Statements
The revised Standard has introduced a number of terminology changes (including
revised titles for the condensed financial statements) and has resulted in a
number of changes in presentation and disclosure. However, the revised Standard
has had no impact on the reported results or financial position of the Group.
3.SEGMENT INFORMATION
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 six months ended 30 June 2009:
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | America | | EMEA | | World | | Total |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | US$ | | US$ | | US$ | | US$ |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| Revenue from | 1,246,383 | | 1,298,845 | | 501,023 | | 3,046,251 |
| external | | | | | | | |
| customers | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | 127,050 | | 132,330 | | 51,255 | | 310,635 |
| Operating | | | | | | | |
| profit | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | | | | | | | 178,307 |
| Net | | | | | | | |
| finance | | | | | | | |
| gains | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | | | | | | | (54,059) |
| Share | | | | | | | |
| of | | | | | | | |
| loss | | | | | | | |
| of an | | | | | | | |
| | | | | | | | |
| associate | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | | | | | | | (23,727) |
| Share | | | | | | | |
| of | | | | | | | |
| loss | | | | | | | |
| of a | | | | | | | |
| jointly | | | | | | | |
| | | | | | | | |
| controlled | | | | | | | |
| entity | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | | | | | | | 411,156 |
| Profit | | | | | | | |
| before | | | | | | | |
| taxation | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | | | | | | | - |
| Taxation | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
| | | | | | | | 411,156 |
| Profit | | | | | | | |
| for | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
+-------------------------------------------------+-------------+--+-------------+--+------------+--+--------------+
+-----------------------------------+------------+--+------------+--+---------------+--+---------------+
| | 77,626 | | 10,170 | | 8,544,473 | | 8,632,269 |
| Segment | | | | | | | |
| assets | | | | | | | |
+-----------------------------------+------------+--+------------+--+---------------+--+---------------+
| | | | | | | | |
+-----------------------------------+------------+--+------------+--+---------------+--+---------------+
| | 43,659 | | - | | 2,422,002 | | 2,465,661 |
| Segment | | | | | | | |
| liabilities | | | | | | | |
+-----------------------------------+------------+--+------------+--+---------------+--+---------------+
Segmental information for the six months ended 30 June 2008:
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | America | | EMEA | | World | | Total |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | US$ | | US$ | | US$ | | US$ |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| Revenue from | 1,612,772 | | 851,524 | | 479,102 | | 2,943,398 |
| external | | | | | | | |
| customers | | | | | | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | | | | | | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | (123,752) | | (65,263) | | (36,809) | | (225,824) |
| Operating | | | | | | | |
| loss | | | | | | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | | | | | | | 319,477 |
| Net | | | | | | | |
| finance | | | | | | | |
| gains | | | | | | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | | | | | | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | | | | | | | 93,653 |
| Profit before | | | | | | | |
| taxation | | | | | | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | | | | | | | - |
| Taxation | | | | | | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | | | | | | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
| | | | | | | | 93,653 |
| Profit | | | | | | | |
| for | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
+-------------------------------------------------+-----------+--+----------+--+-----------+--+-----------+
+-----------------------------------+-------------+--+------------+--+---------------+--+---------------+
| | 150,127 | | 11,474 | | 8,387,120 | | 8,548,721 |
| Segment | | | | | | | |
| assets | | | | | | | |
+-----------------------------------+-------------+--+------------+--+---------------+--+---------------+
| | | | | | | | |
+-----------------------------------+-------------+--+------------+--+---------------+--+---------------+
| | 91,174 | | - | | 2,064,096 | | 2,155,270 |
| Segment | | | | | | | |
| liabilities | | | | | | | |
+-----------------------------------+-------------+--+------------+--+---------------+--+---------------+
Segmental information for the year ended 31 December 2008:
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | North | | | | Rest | | |
| | | | | | of the | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | America | | EMEA | | World | | Total |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | US$ | | US$ | | US$ | | US$ |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| Revenue from | 2,616,339 | | 2,350,482 | | 1,385,703 | | 6,352,524 |
| external | | | | | | | |
| customers | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | 38,541 | | 34,624 | | 20,412 | | 93,577 |
| Operating | | | | | | | |
| profit | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | (507,795) |
| Net | | | | | | | |
| finance | | | | | | | |
| costs | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | (24,041) |
| Share | | | | | | | |
| of | | | | | | | |
| loss | | | | | | | |
| of an | | | | | | | |
| | | | | | | | |
| associate | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | (150,403) |
| Share | | | | | | | |
| of | | | | | | | |
| loss | | | | | | | |
| of a | | | | | | | |
| jointly | | | | | | | |
| controlled | | | | | | | |
| entity | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | (588,662) |
| Loss before | | | | | | | |
| taxation | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | - |
| Taxation | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
| | | | | | | | (588,662) |
| Loss | | | | | | | |
| for | | | | | | | |
| the | | | | | | | |
| year | | | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+--+---------------+
+-----------------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | 159,516 | | 7,564 | | 8,896,286 | | 9,063,366 |
| Segment | | | | | | | |
| assets | | | | | | | |
+-----------------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | | | | | | | |
+-----------------------------------+-------------+--+-----------+--+---------------+--+---------------+
| | 87,520 | | - | | 3,223,525 | | 3,311,045 |
| Segment | | | | | | | |
| liabilities | | | | | | | |
+-----------------------------------+-------------+--+-----------+--+---------------+--+---------------+
4. OPERATING PROFIT/(LOSS)
Operating profit/(loss) is arrived after charging/(crediting):-
+------------------------------------+------------+--+------------+--+------------+
| | Unaudited | | Unaudited | | Audited |
+------------------------------------+------------+--+------------+--+------------+
| | 6 | | 6 | | 12 |
| | months to | | months to | | months to |
+------------------------------------+------------+--+------------+--+------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+------------------------------------+------------+--+------------+--+------------+
| | US$ | | US$ | | US$ |
+------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Research and | | | | | |
| development | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| - current | 810,678 | | 534,466 | | 1,388,717 |
| period | | | | | |
| expenditure | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Bad debts | - | | 22,199 | | - |
+------------------------------------+------------+--+------------+--+------------+
| Foreign | (173,148) | | (207,333) | | 707,031 |
| exchange | | | | | |
| (gain)/loss | | | | | |
+------------------------------------+------------+--+------------+--+------------+
5.EARNINGS/(LOSS) PER SHARE
The calculation of the basic and diluted earnings/(loss) per share is based on
the following data:
+-------------------------------------------------+------------+--+------------+--+------------+
| | Unaudited | | Unaudited | | Audited |
+-------------------------------------------------+------------+--+------------+--+------------+
| | 6 | | 6 | | 12 months |
| | months to | | months to | | to |
+-------------------------------------------------+------------+--+------------+--+------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+-------------------------------------------------+------------+--+------------+--+------------+
| | US$ | | US$ | | US$ |
+-------------------------------------------------+------------+--+------------+--+------------+
| Earnings | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Earnings | 411,156 | | 93,653 | | (588,662) |
| for the | | | | | |
| purpose | | | | | |
| of basic | | | | | |
| earnings/(loss) | | | | | |
| per share being | | | | | |
| net | | | | | |
| profit/(loss) | | | | | |
| attributable to | | | | | |
| equity | | | | | |
| shareholders of | | | | | |
| the parent | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Earnings/(loss) | 411,156 | | 93,653 | | (588,662) |
| for the purpose | | | | | |
| of diluted | | | | | |
| earnings/(loss) | | | | | |
| per share | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Number of | | | | | |
| shares | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Weighted | 24,937,609 | | 24,881,950 | | 24,885,980 |
| average | | | | | |
| number | | | | | |
| of | | | | | |
| shares | | | | | |
| for the | | | | | |
| purpose | | | | | |
| of basic | | | | | |
| earnings/(loss) | | | | | |
| per share | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Effect of | | | | | |
| dilutive | | | | | |
| potential | | | | | |
| shares: | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Share | 1,226,500 | | 1,250,659 | | 1,239,475 |
| options | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Weighted | 26,164,109 | | 26,132,609 | | 26,125,455 |
| average | | | | | |
| number | | | | | |
| of | | | | | |
| shares | | | | | |
| for the | | | | | |
| purpose | | | | | |
| of | | | | | |
| dilutive | | | | | |
| earnings/(loss) | | | | | |
| per share | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Earnings/(loss) | | | | | |
| per share | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Basic | US$0.016 | | US$0.004 | | US$(0.024) |
+-------------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------------+------------+--+------------+--+------------+
| Diluted | US$0.016 | | US$0.004 | | US$(0.023) |
+-------------------------------------------------+------------+--+------------+--+------------+
6.INTEREST IN AN ASSOCIATE
+------------------------------------+------------+--+------------+--+------------+
| | Unaudited | | Unaudited | | Audited |
+------------------------------------+------------+--+------------+--+------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+------------------------------------+------------+--+------------+--+------------+
| | US$ | | US$ | | US$ |
+------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Share of net | 47,216 | | - | | 101,275 |
| assets | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Goodwill on | 125,000 | | - | | 125,000 |
| acquisition | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| | 172,216 | | - | | 226,275 |
+------------------------------------+------------+--+------------+--+------------+
Particulars of the associate as at 30 June 2009 are as follows: -
+----------------+--+---------------+--+------------------+--+-----------------------+
|Name of entity | | Place of | | Percentage of | | Principal activities |
| | |incorporation | | registered | | |
| | |and operation | | capital held | | |
+----------------+--+---------------+--+------------------+--+-----------------------+
| Peak Pacific | | Hong Kong | | 25% | | Provision and |
| Limited | | | | | | development of |
| | | | | | | professional |
| | | | | | | eLearning products, |
| | | | | | | solutions and |
| | | | | | | services. |
+----------------+--+---------------+--+------------------+--+-----------------------+
The summarised financial information in respect of the Group's associate is
set out below:
+-------------------------------------------+------------+--+------------+--+------------+
| | Unaudited | | Unaudited | | Audited |
+-------------------------------------------+------------+--+------------+--+------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+-------------------------------------------+------------+--+------------+--+------------+
| | US$ | | US$ | | US$ |
+-------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------+------------+--+------------+--+------------+
| Total assets | 205,483 | | - | | 439,643 |
+-------------------------------------------+------------+--+------------+--+------------+
| Total | (16,620) | | - | | (34,542) |
| liabilities | | | | | |
+-------------------------------------------+------------+--+------------+--+------------+
| Net assets | 188,863 | | - | | 405,101 |
+-------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------+------------+--+------------+--+------------+
| | 6 months to | | 12 months |
| | | | to |
+-------------------------------------------+----------------------------+--+------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+-------------------------------------------+------------+--+------------+--+------------+
| | US$ | | US$ | | US$ |
+-------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+-------------------------------------------+------------+--+------------+--+------------+
| Revenue | 395,873 | | - | | 174,750 |
+-------------------------------------------+------------+--+------------+--+------------+
| Loss for the | (216,237) | | - | | (96,162) |
| period | | | | | |
+-------------------------------------------+------------+--+------------+--+------------+
| Group's | (54,059) | | - | | (24,041) |
| share | | | | | |
| of loss | | | | | |
| of an | | | | | |
| associate | | | | | |
| for the | | | | | |
| period | | | | | |
+-------------------------------------------+------------+--+------------+--+------------+
7.INTEREST IN A JOINTLY CONTROLLED ENTITY
+------------------------------------+------------+--+------------+--+------------+
| | Unaudited | | Unaudited | | Audited |
+------------------------------------+------------+--+------------+--+------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+------------------------------------+------------+--+------------+--+------------+
| | US$ | | US$ | | US$ |
+------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Share of net | 25,870 | | 199,992 | | 49,597 |
| assets | | | | | |
+------------------------------------+------------+--+------------+--+------------+
Particulars of the jointly controlled entity as at 30 June 2009 are as follows:
-
+------------------+--+---------------+--+------------------+--+-----------------------+
| Name of entity | | Place of | | Percentage of | | Principal activities |
| | |incorporation | | registered | | |
| | |and operation | | capital held | | |
+------------------+--+---------------+--+------------------+--+-----------------------+
| Great (Bermuda) | | Bermuda / | | 50% | |Licensing of computer |
| Island | | Hong Kong | | | | software and |
| Scientific | | | | | | provision of related |
| Limited | | | | | | services. |
| | | | | | | |
+------------------+--+---------------+--+------------------+--+-----------------------+
A summary of the financial position on the jointly controlled entity with the
Company's effective interests is as follows:
+------------------------------------+------------+--+------------+--+------------+
| | Unaudited | | Unaudited | | Audited |
+------------------------------------+------------+--+------------+--+------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+------------------------------------+------------+--+------------+--+------------+
| | US$ | | US$ | | US$ |
+------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Non-current | 843 | | - | | 843 |
| assets | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Current | 25,027 | | 199,992 | | 48,754 |
| assets | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Non-current | - | | - | | - |
| liabilities | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Current | - | | - | | - |
| liabilities | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Net assets | 25,870 | | 199,992 | | 49,597 |
+------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| | 6 months to | | 12 months |
| | | | to |
+------------------------------------+----------------------------+--+------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+------------------------------------+------------+--+------------+--+------------+
| | US$ | | US$ | | US$ |
+------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+------------------------------------+------------+--+------------+--+------------+
| Revenue | 4,607 | | - | | 7,170 |
+------------------------------------+------------+--+------------+--+------------+
| Expenses | (28,334) | | - | | (157,573) |
+------------------------------------+------------+--+------------+--+------------+
| Loss for the | (23,727) | | - | | (150,403) |
| period | | | | | |
+------------------------------------+------------+--+------------+--+------------+
8.SHARE CAPITAL
+--------------------------------------------------+-------------+--+------------+
| | Number | | |
+--------------------------------------------------+-------------+--+------------+
| | of shares | | Amount |
+--------------------------------------------------+-------------+--+------------+
| | | | US$ |
+--------------------------------------------------+-------------+--+------------+
| | | | |
+--------------------------------------------------+-------------+--+------------+
| Authorised share capital: | | | |
+--------------------------------------------------+-------------+--+------------+
| Ordinary | 100,000,000 | | 100,000 |
| shares of | | | |
| US$0.001 each | | | |
+--------------------------------------------------+-------------+--+------------+
| | | | |
+--------------------------------------------------+-------------+--+------------+
| Issued and fully paid: | | | |
+--------------------------------------------------+-------------+--+------------+
| Ordinary | 24,938,576 | | 24,939 |
| shares of | | | |
| US$0.001 each | | | |
+--------------------------------------------------+-------------+--+------------+
| | | | |
+--------------------------------------------------+-------------+--+------------+
The movement of issued share capital is as follows:
+--------------------------------------------------+------------+--+------------+
| | Number | | |
+--------------------------------------------------+------------+--+------------+
| | of shares | | Amount |
+--------------------------------------------------+------------+--+------------+
| | | | US$ |
+--------------------------------------------------+------------+--+------------+
| | | | |
+--------------------------------------------------+------------+--+------------+
| At 1 January 2009 | 24,913,576 | | 24,914 |
+--------------------------------------------------+------------+--+------------+
| Shares issued during the | 25,000 | | 25 |
| period | | | |
+--------------------------------------------------+------------+--+------------+
| | | | |
+--------------------------------------------------+------------+--+------------+
| At 30 June 2009 | 24,938,576 | | 24,939 |
+--------------------------------------------------+------------+--+------------+
| | | | |
+--------------------------------------------------+------------+--+------------+
(a)Share capital
Pursuant to the terms and conditions of the letter of appointment of the
non-executive directors of the Company, on 8 January 2009, an aggregate of
25,000 ordinary shares of the Company was allotted to three non-executive
directors of the Company.
(b) Share options scheme
Details of movement of the share options are as follows:
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| | Unaudited | | Unaudited | | Audited |
+---------------------------------------------------------------+----------------------+--+----------------------+--+----------------------+
| | 6 months to | | 6 months to | | 12 months to |
+---------------------------------------------------------------+----------------------+--+----------------------+--+----------------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+---------------------------------------------------------------+----------------------+--+----------------------+--+----------------------+
| | | Weighted | | | Weighted | | | Weighted |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| | Number | average | | Number | average | | Number | average |
| | of | | | of | | | of | |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| | share | exercise | | share | exercise | | share | exercise |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| | options | price | | options | price | | options | price |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| | | US$ | | | US$ | | | US$ |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| | | | | | | | | |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| Outstanding | 1,226,500 | 0.268 | | 1,260,500 | 0.269 | | 1,260,500 | 0.269 |
| at 1 | | | | | | | | |
| January | | | | | | | | |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| Forfeited | - | - | | (23,000) | 0.300 | | (34,000) | 0.300 |
| during | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| | | | | | | | | |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| Outstanding | 1,226,500 | 0.268 | | 1,237,500 | 0.264 | | 1,226,500 | 0.268 |
| at 30 | | | | | | | | |
| June/31 | | | | | | | | |
| December | | | | | | | | |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| | | | | | | | | |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
| Exercisable | 1,067,328 | 0.264 | | 906,826 | 0.257 | | 1,062,328 | 0.264 |
| at 30 | | | | | | | | |
| June/31 | | | | | | | | |
| December | | | | | | | | |
+---------------------------------------------------------------+-----------+----------+--+-----------+----------+--+-----------+----------+
9.CASH FLOWS FROM OPERATING ACTIVITIES
+----------------------------------------------+------------+--+------------+--+------------+
| | Unaudited | | Unaudited | | Audited |
+----------------------------------------------+------------+--+------------+--+------------+
| | 6 | | 6 | | 12 months |
| | months to | | months to | | to |
+----------------------------------------------+------------+--+------------+--+------------+
| | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+----------------------------------------------+------------+--+------------+--+------------+
| | US$ | | US$ | | US$ |
+----------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Profit/(loss) | 411,156 | | 93,653 | | (588,662) |
| before | | | | | |
| taxation | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Equity | 3,138 | | 35,744 | | 38,911 |
| settled share-based | | | | | |
| payments | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Depreciation | 53,145 | | 52,679 | | 101,733 |
+----------------------------------------------+------------+--+------------+--+------------+
| Amortisation | 22,553 | | 14,803 | | 47,803 |
| | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Loss | 524 | | - | | 511 |
| on | | | | | |
| disposal | | | | | |
| of | | | | | |
| property, | | | | | |
| plant and | | | | | |
| equipment | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Finance | 168 | | 167 | | 335 |
| lease | | | | | |
| charges | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Interest | (5,327) | | (112,311) | | (199,571) |
| income | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Share | 54,059 | | - | | 24,041 |
| of | | | | | |
| loss | | | | | |
| of an | | | | | |
| associate | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Share | 23,727 | | - | | 150,403 |
| of | | | | | |
| loss | | | | | |
| of a | | | | | |
| jointly | | | | | |
| controlled | | | | | |
| entity | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Unrealised | (173,148) | | (207,333) | | 707,031 |
| exchange | | | | | |
| (gain)/loss | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Operating | 389,995 | | (122,598) | | 282,535 |
| cash | | | | | |
| flows | | | | | |
| before | | | | | |
| changes | | | | | |
| in | | | | | |
| working | | | | | |
| capital | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| (Increase)/decrease | (500) | | (18,802) | | 10,584 |
| in inventories | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Decrease/(increase) | 1,786,334 | | 1,055,028 | | (517,368) |
| in receivables | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| (Decrease)/increase | (844,700) | | (283,346) | | 873,093 |
| in payables | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
| Cash | 1,331,129 | | 630,282 | | 648,844 |
| flows | | | | | |
| generated | | | | | |
| from | | | | | |
| operating | | | | | |
| activities | | | | | |
+----------------------------------------------+------------+--+------------+--+------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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