I-Design Interim Results

Date : 06/25/2009 @ 2:00AM
Source : UK Regulatory (RNS and others)
Stock : I-Design (IDG)
Quote : 28.5  0.0 (0.00%) @ 2:54AM
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I-Design Interim Results

 
TIDMIDG 
 
RNS Number : 4620U 
i-design Group Plc 
25 June 2009 
 
? 
 
IDG 
I-DESIGN GROUP PLC 
("i-design" or "the Group" or "the Company") 
 
 
Unaudited Interim Results 
for the six months to 31 March 2009 
 
 
i-design provides a market leading ATM advertising solution (called atmAd) which 
enables ATM network owners to run both third party advertising and their own 
internal marketing campaigns on their ATM screens and receipts. 
 
 
 
 
Highlights 
 
 
  *  Revenue increased by 46% to GBP1,379,000 (2008: GBP947,000) 
 
  *  Operating loss of GBP382,000 (2008: GBP347,000) 
 
  *  Loss before taxation of GBP368,000 (2008: GBP291,000) 
 
  *  Basic loss per share of 0.03p (2008: 0.02p) 
 
  *  Total assets at 31 March 2009 of GBP2.91m (2008: GBP3.02m) with net cash of 
  GBP1.9m (2008: GBP2.4m) 
 
  *  Revenue growth in all areas 
 
  *  Media sales revenues increased by 72% in a difficult advertising environment 
 
  *  Near term results will be impacted by difficult trading conditions but long term 
  growth prospects remain positive 
 
 
 
 
 
James Faulds, Chairman, commented, 
 
 
"The Group continues to make progress. While results in the near term will be 
affected by the current banking environment, the increase in advertising 
revenues is very encouraging and we remain positive about i-design's long term 
growth prospects. Worldwide interest in our solution is high and our overall 
offering is market leading. We continue to see the potential to build the 
Group substantially as the trading environment improves." 
 
 
 
 
Enquiries: 
 
 
+-------------------+----------------------------+------------------------+ 
| i-design group    | Ana Stewart, Chief         | T: 020 7448 1000       | 
| plc               | Executive                  | Thereafter: 01382 541  | 
|                   | Ian Sunter, Finance        | 041                    | 
|                   | Director                   |                        | 
+-------------------+----------------------------+------------------------+ 
|                   |                            |                        | 
+-------------------+----------------------------+------------------------+ 
| Biddicks          | Katie Tzouliadis           | T: 020 7448 1000       | 
+-------------------+----------------------------+------------------------+ 
|                   | Sophie Lane                |                        | 
+-------------------+----------------------------+------------------------+ 
|                   |                            |                        | 
+-------------------+----------------------------+------------------------+ 
| Arbuthnot         | Tom Griffiths              | T: 020 7012 2000       | 
| Securities        |                            |                        | 
+-------------------+----------------------------+------------------------+ 
|                   | Alasdair Younie            |                        | 
+-------------------+----------------------------+------------------------+ 
 
 
 
 
 
 
  CHAIRMAN'S STATEMENT 
 
 
Introduction 
 
 
I am pleased to report interim results for the six months ended 31 March 2009. 
Against an increasingly difficult economic environment and the specific problems 
of the banking sector, we have achieved a creditable performance with the 
benefits of the ATM networks added over the past year coming through. 
 
 
Results 
 
 
For the six months to 31 March 2009, revenue increased by 46% to GBP1,379,000 
(2008: GBP947,000), with income from  software & consultancy sales, media sales 
and creative sales all showing growth over the corresponding period last year. 
Gross profits rose by 41% to GBP431,000 (2008: GBP305,000). 
 
 
Our cost base increased by 18% to GBP820,000 from GBP697,000 last year. This 
largely reflected the recruitment of additional sales staff in the second half 
of the financial year ended 30 September 2008 as well as marketing-related 
initiatives undertaken. As a result, the operating loss was GBP382,000 (2008: 
GBP347,000). Much lower deposit interest rates led to decreased finance income 
of GBP18,000 (2008: GBP61,000). The loss before taxation was GBP368,000 (2008: 
GBP291,000). The loss after taxation was GBP368,000 (2008: GBP291,000) and the 
basic loss per share was 0.03p (2008: 0.02p). 
 
 
Higher levels of activity resulted in higher trade receivables and trade 
payables. Cash and equivalents as at 31 March 2009 were a healthy GBP1,920,000 
(2008: GBP2,385,000). Borrowings were only GBP35,000 (2008: GBP79,000) and total 
assets at 31 March 2009 stood at GBP2,911,000 (2008: GBP3,015,000). 
 
 
There was a cash outflow from operating activities of GBP166,000 (2008: outflow 
of GBP263,000) which, with a net inflow from investing and financing activities 
of GBP490,000 mainly arising from the sale of bonds (2008: outflow of GBP5,000), 
resulted in an increase in cash and cash equivalents of GBP328,000 (2008: 
decrease of GBP268,000). 
 
 
Business Model 
 
 
i-design has developed an ATM advertising solution, called atmAd, which enables 
retail banks to generate a new source of revenue, from one-to-one advertising on 
ATM screens and receipts. 
 
 
atmAd provides a comprehensive solution, handling all aspects of advertising 
campaign management from booking, scheduling, distribution, playback and 
reporting. Any advertising is displayed during the 'dead space' in an ATM 
transaction, while customers are waiting for their cash, card or receipt, and 
therefore customers' time at the cash machine is not extended. atmAd is also 
unique in being platform independent, running on any type of Windows-based ATM 
environment. 
 
 
The Company generates three main sources of revenue from the provision of atmAd, 
as set out below.  Of these, software & consultancy sales and media sales 
represent our key revenue generators. 
 
 
  *  Software & consultancy sales 
 
These are generated through the sale of software licences to ATM network owners 
for the use of atmAd. Income is also generated from associated maintenance fees 
and integration services. 
 
 
  *  Media sales 
 
Advertising commission is generated from selling advertising space on behalf of 
ATM network owners. The revenues generated from advertising commission are split 
between the network owner and i-design. 
 
 
  *  Creative sales 
 
These derive from fees generated from ATM screen design services to banks and 
for the creation of advertisements or the conversion of existing advertisements 
into the appropriate ATM format for advertisers. 
 
 
Currently, i-design's offering is unrivalled in being the only dedicated ATM 
advertising solution in the UK which combines both the software and media sales 
capability necessary to enable network owners to generate revenue from third 
party advertising. 
 
Business Development 
 
 
i-design's software product, atmAd, is now licensed to approximately 12,000 ATMs 
and has been installed across some 6,000 ATMs in the UK, with the last financial 
year representing a breakthrough year as we signed our largest contract to date. 
These 12,000 ATMs account for just over one-third of all UK ATMs operated by 
financial institutions. The Company remains the only provider, both in the UK 
and overseas, with the ability to facilitate ATM advertising, deliver third 
party advertisers and run multi-network advertising campaigns. This places the 
business in a good position to generate future revenue growth. 
 
 
As a result of last year's major contract win as well as the contract extensions 
we secured, the Company started the current financial year with a significantly 
increased estate of ATMs available for third party advertising, some 4,500 ATMs 
in total. We were therefore expecting to see a major uplift in revenues from 
media sales and I am encouraged to report that in a difficult advertising 
environment, media sales revenues increased by 72% over the same period last 
year. 
 
 
We saw average booking values increase and have continued to broaden our 
advertiser base, both from the point of view of new advertisers and new market 
sectors. New advertisers included mobile phone and broadband provider, O2, and 
fast food chains, Burger King and Subway. Repeat bookings are also up 
year-on-year including the renewal of a 12 month contract with British Airways. 
 
 
There is no doubt though that the pattern of advertising spend has changed as 
the economic environment has deteriorated and, as a result, our visibility of 
bookings has shortened. However, with the current need for advertising spend to 
demonstrate tangible returns, advertising on ATMs remains highly attractive to 
brands. Independent research data shows that consumer recall of ATM advertising 
is very high, reflecting the extremely engaged nature of the ATM transaction. 
Electronic Point of Sale (EPOS) data also shows the effectiveness of ATM 
receipts used in redemption campaigns, with the success of these 
campaigns enhanced by the proximity of the ATMs to retail outlets.  An example 
of this is a recent advert for Coca Cola Enterprises, which included a money-off 
voucher against its Appletiser fruit-flavoured drinks. During the period of the 
campaign, sales of these drinks rose by 6%, with the coupon redeemed in a fifth 
of overall sales. 
 
 
In 2008, there were 2.75 billion cash withdrawal transactions at ATMs in the UK 
of which 94% were from ATMs owned by financial institutions. With the 
enlargement in our third party ATM estate, we can offer advertisers the 
potential to reach some 633 million of these transactions, providing potential 
for future media sales growth. 
 
 
We are continuing to seek to increase our ATM estate and, during the period, 
negotiations on two major new UK contracts progressed well despite the 
prevailing conditions in the banking sector. Progress was such that we had 
expected a positive outcome to these negotiations during the current financial 
year. However, as we announced on 22 May 2009, it became clear that our original 
timeframes required revision. These delays are extremely disappointing but we 
continue to engage with major ATM network owners and our relationships remain 
very good. We also see good opportunities to expand overseas and having secured 
our first overseas contract last year with a European bank, atmAd is now 
installed on several hundred ATMs in Greece. 
 
 
Outlook 
 
 
We are greatly encouraged by the increase in revenues in a very difficult 
trading environment. Whilst issues in the banking sector will have an adverse 
impact on our results in the short term, we continue to see worldwide interest 
among ATM network owners and our track record in delivering multi-network 
advertising campaigns remains unrivalled. 
 
 
We continue to monitor the cost base closely and the Group's cash position is 
healthy with negligible borrowings. The resources are in place to facilitate 
sustainable growth as the banking sector recovers. 
 
 
We will continue to target ATM networks with large ATM estates and to develop 
both direct and channel sales into overseas territories.  As we look ahead we 
remain confident that the long term opportunity to build on our market leading 
position is very encouraging. 
 
 
James Faulds 
Chairman 
 
 I-DESIGN GROUP PLC 
Consolidated interim income statement for the six months 
ended 31 March 2009 
 
 
 
 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      | Unaudited | Unaudited |     Audited | 
|                                     |      |  6 months |  6 months |        Year | 
|                                     |      |     ended |     ended |       ended | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |    31 Mar |    31 Mar |     30 Sept | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |      2009 |      2008 |        2008 | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     | Note |    GBP000 |    GBP000 |      GBP000 | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Revenue                             |      |     1,379 |       947 |       2,071 | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Cost of sales                       |      |     (948) |     (642) |     (1,275) | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |      ____ |      ____ |       _____ | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Gross profit                        |      |       431 |       305 |         796 | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |      ____ |      ____ |       _____ | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Other income                        |      |         7 |        45 |          44 | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Administrative expenses             |      |     (820) |     (697) |     (1,463) | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |      ____ |      ____ |       _____ | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Operating loss                      |      |     (382) |     (347) |       (623) | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Finance income                      |      |        18 |        61 |          95 | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Finance expenses                    |      |       (4) |       (5) |         (8) | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |      ____ |      ____ |        ____ | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Loss before taxation                |      |     (368) |     (291) |       (536) | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Taxation                            |    5 |         - |         - |           - | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |      ____ |      ____ |        ____ | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Loss for the financial period       |      |     (368) |     (291) |       (536) | 
| attributable to equity holders of   |      |           |           |             | 
| the Company                         |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |      ==== |      ==== |        ==== | 
+-------------------------------------+------+-----------+-----------+-------------+ 
|                                     |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| (Loss) per share                    |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
| Basic and diluted loss per share    |    4 |    (0.03) |    (0.02) |      (0.04) | 
| (pence)                             |      |           |           |             | 
+-------------------------------------+------+-----------+-----------+-------------+ 
  I-DESIGN GROUP PLC 
Consolidated interim balance sheet as at 31 March 2009 
 
 
 
 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |   Unaudited |   Unaudited |     Audited | 
|                                |      |      31 Mar |      31 Mar |     30 Sept | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |        2009 |        2008 |        2008 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                | Note |      GBP000 |      GBP000 |      GBP000 | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Assets                         |      |             |             |             | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Non current assets             |      |             |             |             | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Property, plant and equipment  |      |          96 |          75 |         101 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |         ___ |         ___ |         ___ | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |          96 |          75 |         101 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |         ___ |         ___ |         ___ | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |             |             |             | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Current assets                 |      |             |             |             | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Trade and other receivables    |      |         895 |         525 |         855 | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Loans and receivables          |      |           - |           - |         499 | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Tax recoverable                |      |           - |          30 |           - | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Cash and cash equivalents      |      |       1,920 |       2,385 |       1,582 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |      ______ |      ______ |      ______ | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Total current assets           |      |       2,815 |       2,940 |       2,936 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |      ______ |      ______ |      ______ | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Total assets                   |      |       2,911 |       3,015 |       3,037 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |       ===== |       ===== |       ===== | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Liabilities                    |      |             |             |             | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Current liabilities            |      |             |             |             | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Trade and other payables       |      |       1,142 |         657 |         916 | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Current borrowings             |      |          15 |          50 |          27 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |      ______ |      ______ |      ______ | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Total current liabilities      |      |       1,157 |         707 |         943 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |      ______ |      ______ |      ______ | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Non current liabilities        |      |             |             |             | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Non current borrowings         |      |          20 |          29 |          27 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |      ______ |      ______ |      ______ | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Total liabilities              |      |       1,177 |         736 |         970 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |      ______ |      ______ |      ______ | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |             |             |             | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Equity                         |      |             |             |             | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Share capital                  |    7 |         533 |         533 |         533 | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Share premium account          |      |       3,433 |       3,433 |       3,433 | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Retained earnings              |    6 |     (2,232) |     (1,687) |     (1,899) | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |      ______ |      ______ |      ______ | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Total equity                   |      |       1,734 |       2,279 |       2,067 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |      ______ |      ______ |      ______ | 
+--------------------------------+------+-------------+-------------+-------------+ 
| Total equity and liabilities   |    6 |       2,911 |       3,015 |       3,037 | 
+--------------------------------+------+-------------+-------------+-------------+ 
|                                |      |       ===== |       ===== |       ===== | 
+--------------------------------+------+-------------+-------------+-------------+ 
  I-DESIGN GROUP PLC 
Consolidated interim cash flow statement for the six months ended 31 March 2009 
 
 
 
 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |   Unaudited |   Unaudited |     Audited | 
|                                      |    6 months |    6 months |        Year | 
|                                      |       ended |       ended |       ended | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |      31 Mar |      31 Mar |     30 Sept | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |        2009 |        2008 |        2008 | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |      GBP000 |      GBP000 |      GBP000 | 
+--------------------------------------+-------------+-------------+-------------+ 
| Cash flows from operating activities |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| Operating loss                       |       (382) |       (347) |       (623) | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| Depreciation                         |           9 |           6 |          15 | 
+--------------------------------------+-------------+-------------+-------------+ 
| Exchange gain on cash                |        (14) |           - |           - | 
+--------------------------------------+-------------+-------------+-------------+ 
| Increase in trade and other          |        (40) |       (192) |       (509) | 
| receivables                          |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| Increase in trade and other payables |         226 |         232 |         478 | 
+--------------------------------------+-------------+-------------+-------------+ 
| Taxation receipts                    |           - |           - |          30 | 
+--------------------------------------+-------------+-------------+-------------+ 
| Share based payment                  |          35 |          38 |          71 | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |        ____ |        ____ |        ____ | 
+--------------------------------------+-------------+-------------+-------------+ 
| Net cash outflow from operating      |       (166) |       (263) |       (538) | 
| activities                           |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |        ____ |        ____ |        ____ | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| Cash flows from investing activities |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| Purchases of property, plant and     |         (4) |        (33) |        (67) | 
| equipment                            |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| Sale/(purchase) of bonds             |         496 |           - |       (496) | 
+--------------------------------------+-------------+-------------+-------------+ 
| Interest received                    |          21 |          61 |          91 | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |       _____ |       _____ |       _____ | 
+--------------------------------------+-------------+-------------+-------------+ 
| Net cash used from investing         |         513 |          28 |       (472) | 
| activities                           |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |       _____ |       _____ |       _____ | 
+--------------------------------------+-------------+-------------+-------------+ 
| Cash flows from financing activities |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| Repayment of borrowings              |        (16) |        (25) |        (50) | 
+--------------------------------------+-------------+-------------+-------------+ 
| Payment of finance lease liabilities |         (3) |         (3) |         (3) | 
+--------------------------------------+-------------+-------------+-------------+ 
| Interest paid                        |         (4) |         (5) |         (8) | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |       _____ |       _____ |       _____ | 
+--------------------------------------+-------------+-------------+-------------+ 
| Net cash outflow from financing      |        (23) |        (33) |        (61) | 
| activities                           |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |       _____ |       _____ |       _____ | 
+--------------------------------------+-------------+-------------+-------------+ 
| Net increase/(decrease) in cash and  |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| cash equivalents                     |         328 |       (268) |     (1,071) | 
+--------------------------------------+-------------+-------------+-------------+ 
| Effects of exchange rate changes on  |          14 |           - |           - | 
| cash and cash equivalents            |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| Cash and cash equivalents at         |             |             |             | 
| beginning                            |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
| of period                            |       1,582 |       2,653 |       2,653 | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |       _____ |       _____ |       _____ | 
+--------------------------------------+-------------+-------------+-------------+ 
| Cash and cash equivalents at end of  |       1,920 |       2,385 |       1,582 | 
| the period                           |             |             |             | 
+--------------------------------------+-------------+-------------+-------------+ 
|                                      |        ==== |        ==== |        ==== | 
+--------------------------------------+-------------+-------------+-------------+ 
 
 
  I-DESIGN GROUP PLC 
 
 
Notes to the interim financial information 
 
 
  1    This interim statement for the six months ended 31 March 2009 is 
unaudited and was approved by the Directors on 24 June 2009. The information set 
out in this announcement does not constitute statutory accounts within the 
meaning of Section 434 of the Companies Act 2006. 
 
  2    Report and financial statements 
 
The statutory accounts for the financial year ended 30 September 2008 which were 
prepared in accordance with International Financial reporting Standards as 
adopted by the EU (IFRSs) and with those parts of the Companies Act 1985 
applicable to companies reporting under IFRS have been delivered to the 
Registrar of Companies. The report of the auditors was unqualified and did not 
contain a statement under section 237 (2) or (3) of the Companies Act 1985. 
Copies of the financial statements for 2008 are available from the Company's 
registered office at 16-18 Boat Road, Newport-on-Tay, Fife DD6 8EZ and from the 
Company's website at www.i-design.co.uk. 
 
  3    Accounting policies 
 
Basis of preparation 
 
The interim financial information has been prepared in accordance with the 
Group's principal accounting policies and estimation techniques as will be 
adopted in the Group financial statements for the year ending 30 September 
2009.The Group financial statements for the year ended 30 September 2008 were 
prepared under International Financial Reporting Standards. These interim 
financial statements have been prepared on a consistent basis and format; 
however IAS 34 'Interim Financial Reporting' has not been applied in full, since 
as an AIM quoted company we are not required to do so. 
 
The preparation of financial statements in conformity with Adopted IFRSs 
requires the directors to make judgements, estimates and assumptions that affect 
the application of policies and reported amounts of assets and liabilities, 
income and expense. The estimates and judgements are based on historical 
experience and various other factors that are believed to be reasonable under 
the circumstances, the results of which form the basis of making judgements 
about carrying amounts of assets and liabilities that are not readily apparent 
from other sources. Actual results may differ from these estimates. 
 
  4    Earnings per share and dividends 
 
No dividends have been paid during the period ended 31 March 2009. 
 
Basic earnings per share are calculated by dividing the earnings attributable to 
ordinary shareholders by the weighted average shares in issue during the period. 
Diluted earnings per share takes into account the dilutive effect of the share 
options outstanding under the Company's employee option schemes. The earnings 
per share have been calculated on a weighted average basis. 
 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |   Unaudited |   Unaudited |     Audited | 
|                                   |    6 months |    6 months |        Year | 
|                                   |       ended |       ended |       ended | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |      31 Mar |      31 Mar |     30 Sept | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |        2009 |        2008 |        2008 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |      GBP000 |      GBP000 |      GBP000 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| (Loss)/profit for financial       |       (368) |       (291) |       (536) | 
| period                            |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |         === |         === |         === | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |         No. |         No. |         No. | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Weighted average no of shares     |  14,105,437 |  14,105,437 |  14,105,437 | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |    ======== |    ======== |    ======== | 
+-----------------------------------+-------------+-------------+-------------+ 
|                                   |             |             |             | 
+-----------------------------------+-------------+-------------+-------------+ 
| Basic and diluted loss per share  |      (0.03) |      (0.02) |      (0.04) | 
+-----------------------------------+-------------+-------------+-------------+ 
 
 
  5    Taxation 
 
The Group has not recognised a deferred tax asset in respect of tax losses 
within one of the subsidiaries as the subsidiary generates losses and is 
expected to continue to do so in the short term. 
 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
| 6  | Statement of changes in       |     Share |     Share |  Retained |           | 
|    | equity                        |           |           |           |           | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |   capital |   premium |  earnings |     Total | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |    GBP000 |    GBP000 |    GBP000 |    GBP000 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Balance at 30 September 2007  |       533 |     3,433 |   (1,434) |     2,532 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Loss for the period           |         - |         - |     (291) |     (291) | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |     _____ |     _____ |    ______ |    ______ | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Total recognised income and   |           |           |   (1,725) |     2,241 | 
|    | expense                       |           |           |           |           | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Shared based payment          |         - |         - |        38 |        38 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |     _____ |     _____ |    ______ |    ______ | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Balance at 31 March 2008      |       533 |     3,433 |   (1,687) |     2,279 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |      ==== |      ==== |     ===== |     ===== | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Balance at 30 September 2008  |       533 |     3,433 |   (1,899) |     2,067 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Loss for the period           |         - |         - |     (368) |   (368)   | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |     _____ |     _____ |    ______ |    ______ | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Total recognised income and   |           |           |   (2,267) |     1,699 | 
|    | expense                       |           |           |           |           | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Share based payments          |         - |         - |        35 |        35 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |     _____ |     _____ |    ______ |    ______ | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Balance at 31 March 2009      |       533 |     3,433 |   (2,232) |     1,734 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |      ==== |      ==== |     ===== |     ===== | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Balance at 30 September 2007  |       533 |     3,433 |   (1,434) |     2,532 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Loss for the period           |           |         - |     (536) |     (536) | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |     _____ |     _____ |    ______ |    ______ | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Total recognised income and   |           |           |   (1,970) |     1,996 | 
|    | expense                       |           |           |           |           | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Share based payments          |         - |         - |        71 |        71 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |     _____ |     _____ |    ______ |    ______ | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    | Balance at 30 September 2008  |       533 |     3,433 |   (1,899) |     2,067 | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |      ==== |      ==== |     ===== |     ===== | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
|    |                               |           |           |           |           | 
+----+-------------------------------+-----------+-----------+-----------+-----------+ 
 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
| 7  | Share capital         |                   |                   |                   | 
+----+-----------------------+-------------------+-------------------+-------------------+ 
|    |                       |     31 March 2009 |     31 March 2008 |      30 September | 
|    |                       |                   |                   |             2008  | 
+----+-----------------------+-------------------+-------------------+-------------------+ 
|    |                       |     No. |  GBP000 |     No. |  GBP000 |     No. |  GBP000 | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    |                       |     000 |         |     000 |         |     000 |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | Company               |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | Authorised            |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | Ordinary shares of    |  20,000 |   2,000 |  20,000 |   2,000 |  20,000 |   2,000 | 
|    | 10p each              |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    |                       |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | Allotted, called up and fully   |         |         |         |         |         | 
|    | paid                            |         |         |         |         |         | 
+----+---------------------------------+---------+---------+---------+---------+---------+ 
|    | Ordinary shares of    |  14,105 |   1,410 |  14,105 |   1,410 |  14,105 |   1,410 | 
|    | 10p each              |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    |                       |  ______ |   _____ |    ____ |    ____ |   _____ |   _____ | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    |                       |  14,105 |   1,410 |  14,105 |   1,410 |  14,105 |   1,410 | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | Group                 |   ===== |    ==== |   ===== |    ==== |   ===== |    ==== | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | Issued and fully paid |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | Ordinary shares of    |      18 |      18 |      18 |      18 |      18 |      18 | 
|    | GBP1 each             |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | (Existing share       |         |         |         |         |         |         | 
|    | capital of            |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | i-design multimedia   |         |         |         |         |         |         | 
|    | at date               |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | of reverse            |         |         |         |         |         |         | 
|    | acquisition)          |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    | Ordinary shares of    |   5,151 |     515 |   5,151 |     515 |   5,151 |     515 | 
|    | 20p each              |         |         |         |         |         |         | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    |                       |  ______ |   _____ |    ____ |    ____ |   _____ |   _____ | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    |                       |   5,169 |     533 |   5,169 |     533 |   5,169 |     533 | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
|    |                       |   ===== |    ==== |   ===== |    ==== |   ===== |    ==== | 
+----+-----------------------+---------+---------+---------+---------+---------+---------+ 
 
The share capital of i-design group plc consists of ordinary shares with a par 
value of 10p. All shares are equally eligible to receive dividends and represent 
one vote at the shareholders' meetings of i-design group plc. All shares issued 
at 31 March 2009 are fully paid. 
 
  8Availability of interim statement 
 
Copies of the interim statement will be available from the Company's registered 
office at 16-18 Boat Road, Newport-on-Tay, Fife DD6 8EZ and from the Company's 
website at www.i-design.co.uk. 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 IR SELFMLSUSEEM 
 
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