RNS Number : 0604I
Earthport PLC
13 November 2008
13 November 2008
Earthport plc (the 'Company' or the 'Group')
Preliminary Results
Earthport plc, the global payments utility, is pleased to announce its preliminary results
for the year ended 30 June 2008.
Financial Highlights
* Revenue increased by 79% to £1.92 million (2007: £1.07m)
* A further £600k was generated by a sale of limited North American marketing rights1
* Operating loss fell by 17% to £3.34 million (2007: £4.03m)
* Finance costs fell 13% to £0.33 million (2007: £0.38m)
* Loss per share fell 53% to 5.14p (2007: 10.98p)
* Debt was reduced to £1.10 million (2007: £2.12m)
* Cash increased to £3.66 million (2007: £0.46 million)
Operational Highlights
* Relationship with IBM leads to strong showing at Sibos
* Relationship with Adobe creates Trade Services Lite
* Further Expansion of the international banking network
* Agreement with Standard Chartered Dubai
* Raised an additional £10.6m of new equity net of expenses
1 Our un-audited interim trading statement released on 8 October 2008 included in the
revenue for the year £600k, generated by the sale
of limited North American Sales and Marketing rights to our venture partner as part of the
establishment of the Earthport USA venture. After
consulting with our Auditors the Revenue from the sale of these rights will be applied to the
balance sheet as Deferred Revenue and
recognised as Revenue in later periods.
Commenting on the results Executive Chairman, Mike Harrison, said:
"Earthport is achieving sustained growth in its activities and this is clearly
demonstrated by these results.
"There has been considerable progress in advancing the Company's model of international
payments and in enlarging the banking coverage.This is being aided by the global economic situation as banks and financial institutions
recognise the benefits of using Earthport for
activities such as payroll, remittances and potentially trade finance.
"We are confident that the Financial Year to June 2009 is our breakthrough year and we
look forward to delivering value to our
shareholders as well as providing an excellent service to our customers."
Earthport's Annual General Meeting will be held at 11am on Friday 12 December 2008 at the
offices at 21 New Street London EC2M 4TP. The
Notice of AGM and form of proxy will be posted to shareholders and will be available on the
Company's website at www.earthport.com. The
Annual Report and Accounts for the year ended 30 June 2008 will be distributed to shareholders
on 21 November 2008.
For further information, please contact:
Earthport plc +44 (0)20 7220 9700
Mike Harrison, Executive Chairman
James Bergman, Chief Executive Officer
Cenkos Securities plc +44 (0)20 7397 8900
Nicholas Wells / Elisabeth Bowman
Andy Roberts
Financial Dynamics +44 (0)20 7831 3113
Jonathon Brill / Alex Beagley / Laura Proudlock
About Earthport
Earthport (www.earthport.com) specialises in the international transactional marketplace
by providing a highly secure, high volume
global collection and payment capability. It has been making national and international
payments and collections since 1998.
Earthport owns, provides and hosts an international money movement platform called the
Universal Payments Network. Using this platform,
Earthport makes secure, low cost international bank payments and collections worldwide.
EXECUTIVE CHAIRMAN'S STATEMENT
INTRODUCTION
I am delighted to report a strong set of results for the year ended 30 June 2008. Revenues
have grown very strongly and we expect will
continue to grow in the financial year ending 30 June 2009. The year has seen great progress
from Earthport, successfully developing the
Company's enormous global opportunity. Further market success and sales traction have been
accompanied by good financial progress: balance
sheet improvement and debt reduction.
In many ways, these results reflect the efforts that we have made since May 2005 to build
a robust business tailored to the
international high volume payments requirements of the world's financial institutions and
corporates. Although we remain mindful of the
current market conditions, the Company is on plan and our future looks bright thanks to our
market positioning and the growing need for our
services by our existing and targeted customers
FINANCIAL REVIEW
The year to 30 June 2008 has been one of steady progress. Revenue for the year ended 30
June 2008 has increased by 79% to £1.92m (2007:
£1.07m). The Group's operating loss fell by 17% to £3.34m (2007: £4.03m). Finance costs
have fallen 13% to £0.33m (2007: £0.38m). The loss
per share fell 53% to 5.14p (2007: 10.98p). During the year, the Group raised £10.6m of
equity, net of expenses. Debt was reduced to £1.10m
(2007: £2.12m). Cash increased to £3.66 million (2007: £0.46 million).
OPERATIONAL REVIEW
During the first half of FY 2008, monthly transaction volume doubled while monthly foreign
exchange ("FX") revenues increased more than
fivefold. During the second half of FY 2008, monthly revenues were up 175% over the same
period last year, while average transaction-driven
monthly revenues were up 65%.
During the second half of FY 2008, monthly transaction volume grew 65% while FX revenues
increased 19% over the first half of FY 2008.By the same comparison, monthly revenues were up 20% while transaction driven monthly revenues
grew 32%.
This improvement brings Earthport another step up in performance and closer to
profitability. More importantly, through the company's
increased focus on existing key clients and the development of additional strategic partner
and customer relationships, this momentum is
charted to continue.
Relationship with IBM: At Sibos 2007 in October, Earthport was one of only two technology
companies invited to participate on IBM's
stand. Also, as a Business Partner, Earthport featured in IBM's Product Guide for the event.Already our relationship with IBM and the
exposure to IBM's sales force and the clients and prospects visiting Sibos has meant that
significant and specific market opportunities are
taking shape.
The Banking Sector: On 20 May 2008 Earthport announced an agreement with Standard
Chartered Bank (SCB) to deliver an operational turnkey
remittance solution for international transfers from Dubai for the large number of overseas
workers who send money home. On 26 June 2008 the
Earthport UPN was demonstrated to the global managers of SCB.
Earthport is negotiating with other banks to deliver a similar turnkey solution and to
provide the Trade Services Lite (TS Lite) product
which has been developed jointly with Adobe.
In addition TS Lite is being tested by a UK high street bank, which has a large client
base of small-to-medium sized Corporates (SMEs)
that trade internationally.
International Payments Industry: During the past 12 months, Earthport has focussed on a
number of strategic service providers in the
Money Transfer business and specifically on intermediaries that require a money transfer
infrastructure, either for themselves or for their
clients. In these applications, Earthport in effect becomes a back-end payments service
utility, to which payments services can be
outsourced. Furthermore, in this market we have concentrated on segments where there is proven
demand for services in multiple international
currencies, such as in the travel industry, entertainment business and the migrant remittance
market.
Market Coverage Strategy: Approximately half of Earthport's existing client base is
comprised of corporates, whose businesses involve
many low-value money transfers. Hitherto this market has not been particularly well served by
the traditional system. However, for these
clients, service is the key to success and time is of the essence: from customer contact,
through the sales and integration processes,
through to revenue realisation. The ability to rapidly integrate our UPN payments system into
their back-office enables them to deliver
measurable improvements to the service level and price that they offer their customers,
quickly and with real bottom-line benefits.
Summary: As a result of understanding our markets more clearly and focussing more
accurately, we have been able to offer a better and
more responsive service to our existing client base; whilst at the same time we have been able
to identify major strategic opportunities.These include banks, corporate clients and government based organisations (US, UK, EU and
International) that need to undergo a
transformation in their payments strategy and delivery processes.
Some of these new opportunities have arisen through our relationship with IBM, but many
others have come through the increasing 'clear
vote of confidence' in Earthport's capabilities, that we are receiving in both Financial
Services and other strategic markets. So, FY 2008
has been very encouraging. However we feel that the next 6 to 12 months will see an even
greater degree of consolidation and success and
lead Earthport well into growth and profitability.
Business/Banking Operations
During the past 12 months, the priority for Earthport has been to consolidate key
strategic banking relationships within the existing
network, with a view to better leveraging the partnership opportunities they present. In
particular, the expansion in coverage and service
via the SEB Group has enabled Earthport to grow considerably in key European markets and, with
other long-standing banking partners set to
adopt a similar model, we see further International expansion following on in the near
future.
Thus the focus continues on growing the portfolio. Initially, growth is targeted in the
lucrative AsiaPac sector, where our partnership
with IBM is adding real leverage and value. Furthermore, a recent restructuring of our
partnership with ANZ Australia is now affording
exciting opportunities to develop key Asian markets including Indonesia, The Philippines and
Thailand. In addition, the growing relationship
with SCB is enlarging our coverage in the territories covered by SCB.
Earthport has experienced a significant growth in client volume during FY 2008 and this
growth continues to drive our need to constantly
review the processes that we employ to handle bulk payment and collection demand. Working
closely with the IT Development team, Earthport's
Business Operations team has been able to consistently demonstrate greater levels of genuine
Straight Through Processing (STP). This
increased level of automation has provided measurable levels of performance improvements and
has contributed to a further reduction in
exception ratios.
IT Development
During the past 12 months the Development Team at Earthport has achieved a number of
goals. Specifically the ideas and objectives that
were set in the re-architecting program we embarked on some 24 months ago have turned into a
series of delivered milestones. This in turn
provided a whole new impetus to the development team's productivity.
As a result of the successes that we have achieved during the latter part of 2007 and in
2008, we have been able to add new members to
our team and been able to provide a whole new set of challenges to other long-standing team
members. And we believe that it is this
consolidation that will yield the results that will enable Earthport to maintain and improve
its technological superiority in the
International Bank-2-Bank payments industry.
Platform Evolution: During the past few months, a new release of our next generation
platform, EPS2, was put into production. This
release focused on improved automation of back office functions and automated support for
several new settlement banks.
In addition to this increase in functionality, as EPS2 has matured, particularly during
the first months of 2008, a measurable
improvement in system up-time has been achieved in excess of its target of 99.9% availability.Naturally these performance improvements have
realised significant benefits in our Banking Operations area, both in terms of customer
satisfaction and more particularly, in terms of the
delivery of higher degrees of automation and continuity.
During the remainder of 2008, this evolution of system Reliability, Availability and
Serviceability (RAS) will continue. However, these
improvements in RAS have provided the opportunity for us to plan and now begin the deployment
of significantly more powerful server
configurations. To this end, during the next few months of 2008 we shall be upgrading many of
our servers to further improve resilience and
more importantly increased scalability.
FUTURE DEVELOPMENTS
The Company is on track to achieve its goal of becoming the utility for high volume
international payments, which is utilised by banks,
financial institutions and corporates.
Fiscal Year 09 (to 30 June 2009) is already demonstrating more progress towards this goal
and will see the Company firmly established in
this very large global market with increased presence, clients and revenues.
Mike Harrison
Executive Chairman
CONSOLIDATED INCOME STATEMENT
for the year ended 30 June 2008
Notes 2008 2007
£'000 £'000
Continuing operations: As restated
Revenue 2 1,915 1,077
Cost of sales (390) (340)
Gross profit 1,525 737
Administrative expenses (4,861) (4,765)
Operating loss (3,336) (4,028)
Finance costs 3 (325) (375)
Loss before taxation 4 (3,661) (4,403)
Taxation 5 280 -
Loss attributable to equity (3,381) (4,403)
shareholders of the company
Loss per share - basic and fully 6 (5.14p) (10.98p)
diluted
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the year ended 30 June 2008
2008 2007
£'000 £'000
Loss attributable to the equity shareholders of (3,381) (4,403)
the company
Total recognised income and expense for the (3,381) (4,403)
year, attributable to the
equity shareholders of the company
CONSOLIDATED BALANCE SHEET
at 30 June 2008
Notes 2008 2007
£'000 £'000
Assets As restated
Non-current assets
Property, plant and equipment 7 139 99
Investments 8 160 160
Deferred tax asset 5 280 -
579 259
Current assets
Trade and other receivables 9 2,436 1,084
Cash at bank and in hand 10 3,655 455
6,091 1,539
Total assets 6,670 1,798
Liabilities
Current liabilities
Trade and other payables 11 (3,254) (4,119)
Borrowings 12 (340) (1,053)
(3,594) (5,172)
Non-current liabilities
Borrowings 12 (761) (1,067)
Total liabilities (4,355) (6,239)
NET ASSETS/(LIABILITIES) 2,315 (4,441)
Equity
Capital and reserves
Ordinary shares 13 30,968 28,253
Share premium 14 44,732 36,801
Merger reserve 15 9,200 9,200
Equity reserve 16 - 1,136
Share-based payment reserve 17 1,354 868
Warrant reserve 18 816 1,204
Retained earnings 19 (84,755) (81,903)
EQUITY ATTRIBUTABLE TO THE EQUITY 2,315 (4,441)
SHAREHOLDERS OF THE COMPANY
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 June 2008
Notes 2008 2007
£'000 £'000
NET CASH USED IN OPERATING 20 (4,851) (3,889)
ACTIVITIES
INVESTING ACTIVITIES
Purchase of property plant and (144) (38)
equipment
NET CASH FLOWS USED IN INVESTING (144) (38)
ACTIVITIES
FINANCING ACTIVITIES
Issue of ordinary share capital 8,466 4,364
(net of costs paid)
Drawdown of term loans - 410
Repayment of term loans (271) (207)
Repayment of unsecured loan - (250)
Net cash FLOWS from financing 8,195 4,317
ACTIVITIES
NET INCREASE IN CASH AND CASH 3,200 390
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE YEAR 455 65
CASH AND CASH EQUIVALENTS AT THE
END OF THE YEAR 3,655 455
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2008
1. The financial information set out above has been prepared in accordance with
International Financial Reporting Standards (IFRS) and
those parts of the Companies Act 1985 that remain applicable to companies reporting under IFRS
and does not constitute statutory accounts
within the meaning of Section 240 of the Companies Act 1985.
The Company's auditors have indicated that they intend to issue an unqualified auditor's
report, which will not contain any statement under
Section 237(2) or (3) of the Companies Act 1985, on the statutory financial statements for the
year ended 30 June 2008.
There have been no significant changes to the group accounting policies and the group has
followed the policies as previously published.
2. REVENUE
Revenue, loss and net assets/liabilities are all attributable to one business segment
operating from the United Kingdom. The segmental
analysis by location of customers is as follows:
2008 2007
£'000 £'000
UK 1,582 860
Europe 182 150
North America 151 67
1,915 1,077
3. FINANCE COSTS 2008 2007
£'000 £'000
Interest payable on secured loans 325 375
4. LOSS BEFORE TAXATION 2008 2007
£'000 £'000
As restated
Loss before taxation is stated after
charging:
Depreciation of property, plant and 104 124
equipment
Development costs (included in 607 818
administrative expenses in the income
statement)
Operating leases:
- Property 105 150
Fees payable to the Company's auditors:
- For the audit of the Company's annual
financial statements:
- Baker Tilly UK Audit LLP 45 45
- Baker Tilly - 7
Fees payable to associates of the Company's
auditors:
- For tax compliance and advisory services- 8 20
- For other services - 3
5. TAXATION 2008 2007
£'000 £'000
Deferred tax credit (280) -
Factors affecting the tax credit for the
year:
Loss before taxation (3,661) (4,403)
Loss before tax multiplied by standard rate
of corporation tax in the
UK of 29.5% (2007: 30%) (1,080) (1,320)
Deferred tax credit 280 -
(800) (1,320)
Expenses not deductible for tax purposes 12 5
Timing differences not recognised for 28 41
deferred tax purposes
Consolidation adjustment on inter-company - 49
provisions
Shared based payment costs not recognised 131 114
for deferred tax purposes
Different tax rate applied for deferred tax 15 -
purposes
Losses not recognised for deferred tax 614 1,111
purposes
Recognition of tax losses carried forward 280 -
Tax credit for the year 280 -
The change in the UK standard rate of corporation tax from 30% to 28% with effect from 1
April 2008 is not expected to have a material
impact on future taxation charges.
Further tax trading losses carried forward of £48m (2007: £46m) have not been recognised
due to uncertainty over the timing of their
reversal.
The deferred tax asset recognised in respect of trading losses is based on an assessment
of trading projections for the foreseeable
future.
The movement on the deferred tax asset is as follows:
2008 2007
£'000 £'000
At 1 July - -
Income statement - recognition of tax losses 280 -
At 30 June 280 -
6. LOSS PER SHARE
The loss per share is calculated by dividing the loss attributable to equity holders of
the company by the weighted average number of
ordinary shares in issue during the year.
2008 2007
£'000 £'000
Loss attributable to equity holders of the (3,381) (4,403)
company
2008 2007
Number Number
Weighted average number of ordinary shares in 65,804 40,088
issue (thousands)
2008 2007
Basic and fully diluted loss per share (5.14p) (10.98p)
(pence)
The loss attributable to ordinary shareholders and weighted average number of ordinary
shares for the purposes of calculating the
diluted loss per share are identical to those used for basic loss per ordinary share. This is
because the exercise of share options and
other benefits would have the effect of reducing loss per share and is therefore not dilutive
under the terms of IAS33.
7. PROPERTY, PLANT AND EQUIPMENT
Group and Company
Computer Fixtures Short
equipment fittings and leasehold
and software equipment improvement Total
£'000 £'000 £'000 £'000
Cost
At 1 July 2006 6,265 389 147 6,801
Additions 35 4 - 39
At 1 July 2007 6,300 393 147 6,840
Additions 83 2 59 144
At 30 June 2008 6,383 395 206 6,984
Depreciation
At 1 July 2006 6,124 381 112 6,617
Charge for the year 86 3 35 124
At 1 July 2007 6,210 384 147 6,741
Charge for the year 83 2 19 104
At 30 June 2008 6,293 386 166 6,845
Net book value
At 30 June 2008 90 9 40 139
At 30 June 2007 90 9 - 99
At 30 June 2006 141 8 35 184
Depreciation for all years is included in administrative expenses in the income
statement.
8. INVESTMENTS 2008 2007
Group and Company £'000 £'000
Available-for-sale investment 160 160
The Company holds 0.5% of Altair Financial Services International plc, an unquoted company
specialising in the area of prepaid debit
cards. The investment is held at cost, which, in the opinion of the directors, approximates
fair value. There were no movements on the
investment from 1 July 2006 to 30 June 2008.
Company
£'000
Investment in subsidiaries
Cost at 30 June 2006, 30 June 2007 and 30 June 2008 11,073
Provision for impairment at 30 June 2006, 30 June 2007 (11,072)
and 30 June 2008
Net book value at 30 June 2006, 30 June 2007 1
and 30 June 2008
The Company's subsidiaries Country of Nature of Holding
are: incorporation business
EnsurePay Limited England and Wales On line services 100%
Earthport Enterprises Limited England and Wales Dormant 100%
Earthport Newco Limited England and Wales Dormant 100%
Travelpay Limited England and Wales Dormant 100%
Mobilepay Limited England and Wales Dormant 100%
Earthport Solutions Limited England and Wales Dormant 100%
Earthport Asiapac Limited England and Wales Dormant 100%
Zabadoo.com Limited England and Wales Dormant 100%
Epal Limited England and Wales Dormant 100%
Earthport USA Limited England and Wales Dormant 100%
9. TRADE AND OTHER RECEIVABLES
Group
Company
2008 2007 2008
2007
£'000 £'000 £'000
£'000
Trade receivables 1,059 191 910
93
Other receivables 1,240 752 1,239
752
Amount due from subsidiary - - 53
54
undertakings
Prepayments 137 141 137
141
2,436 1,084 2,339
1,040
Trade receivables amounted to £1,059,000 (2007: £191,000), net of a provision of
£65,000 (2007: £142,000) for impairment. Movement on
the group provisions for impairment were as follows:
2008 2007
£'000 £'000
At 1 July 142 69
Provisions for receivables impairment 65 73
Receivables written off during the year (142) -
At 30 June 65 142
The average credit period taken on sales of services is 154 days (2007: 66 days). No
interest is charged on overdue balances. The
directors consider that the carrying amount of trade receivables approximates their fair
value.
Included in other receivables is an amount in respect of unpaid share capital amounting to
£625,000 due from Rob Cunningham (former
company director). (2007: £625,000) - see note 17.
The principal reason for the increase in other receivables was in regard to foreign
exchange revenues amounting to £483,000 at 30 June
2008 (2007: £Nil).
10. CASH AND CASH EQUIVALENTS
Group
Company
2008 2007 2008
2007
£'000 £'000 £'000
£'000
Cash at bank and in hand 3,655 455 3,654
442
Cash and cash equivalents comprise cash held by the Group and short-term bank deposits
with an original maturity of three months or
less. The carrying amount of these assets approximates their fair value.
11. TRADE AND OTHER PAYABLES
Group Company
2008 2007 2008 2007
£'000 £'000 £'000
£'000
Trade payables 496 653 315 472
Other payables 1,063 1,097 913 937
Amount due to subsidiary - - 751 751
undertakings
Other taxation and social 836 1,742 836 1,753
security
Accruals and deferred income 859 627 859 627
3,254 4,119 3,674 4,540
Trade payables and accruals principally comprise amounts outstanding in respect of
operating costs. The average credit period taken for
trade purchases is 38 days (2007: 53 days). The directors consider that the carrying amounts
for trade and other payables approximate their
fair value.
12. BORROWINGS
2008 2007
Current liabilities £'000 £'000
Secured loans 340 286
Convertible loan notes - 767
340 1,053
2008 2007
Non-current liabilities £'000 £'000
Secured loans 761 1,067
General Capital Venture Finance Limited and Michael Gerson Finance Plc has provided the
loan facilities. The facility is repayable over
5 years at a fixed interest rate of 15%, secured by means of an all-monies mortgage debenture
over the Company's assets.
On 26 June 2008, convertible loan notes amounting to £767,000 all with a maturity date of
30 June 2008 and interest rate of 15% were
converted into 2,189,614 ordinary shares of 10p each at the option of the note holder.
13. SHARE CAPITAL 2008 2007
£'000 £'000
Authorised
At 1 July (69,412,642 ordinary shares 6,941 6,941
of 10p each)
Increase in the ordinary share capital 10,000 -
in the year
At 30 June (169,412,642 ordinary shares 16,941 6,941
of 10p each)
Deferred shares of 7.5p each: 23,059 23,059
307,449,810 (2007: 307,449,810)
At 30 June 40,000 30,000
Issued
At 1 July (51,945,677 ordinary shares 5,194 3,210
of 10p each)
Shares issued in the year 2,715 1,984
At 30 June (79,088,009 ordinary shares 7,909 5,194
of 10p each)
Deferred shares of 7.5p each: 23,059 23,059
307,449,792 (2007: 307,449,792)
At 30 June 30,968 28,253
The deferred shares carry no rights to receive any dividend or other distribution. The
holders of the deferred shares have no rights to
receive notice, attend, speak or vote at any general meeting of the Company. On a return of
capital on liquidation or otherwise, the holders
of the deferred shares are entitled to receive the nominal amount paid up on the deferred
shares after the repayment of £10,000,000 per
ordinary share.
During the year to 30 June 2008 a total of 27,142,332 ordinary shares of 10p each were
allotted, of which 21,450,626 were allotted for
cash consideration of £8,465,966, a further 5,691,706 were allotted upon conversion of
£2,179,612 of convertible loan notes and loan notes
interest.
The following share issues were completed during the year:
2008 No of Average
Shares premium Total
Issued in premium
pence £
September 2007 9,677,419 21.00 2,032,258
October 2007 3,332,968 30.57 1,018,820
November 2007 3,487,160 21.19 738,784
December 2007 48,532 25.00 12,133
February 2008 90,651 25.00 22,663
March 2008 213,000 25.00 53,250
April 2008 6,200,792 53.23 3,300,513
May 2008 1,460,572 25.00 365,143
June 2008 2,631,238 24.69 649,711
2007 No of Average
Shares premium Total
Issued in premium
pence £
July 2006 598,086 31.80 190,191
October 2006 761,190 11.00 83,731
November 2006 476,190 11.00 52,381
December 2006 8,695,651 13.00 1,130,435
March 2007 4,641,955 13.00 603,454
April 2007 208,333 14.00 29,167
May 2007 4,464,287 18.00 803,572
Transaction costs amounting to £262,000 (2007: £264,000) in regard to issue of shares
were deducted from equity and charged against
share premium.
At 30 June 2008, there remained £625,000 (2007: £625,000) due in respect of unpaid share
capital. This is included in other receivables
(note 13).
Further warrants have been granted under the terms of the Company's fund-raising
activities with exercise prices and dates shown in the
table below.
No. of Options Extended
No. of Options
Last date when Exercise outstanding at Granted /( lapsed)
Exercised outstanding at
exercisable price 1 July 2007 No. No.
No. 30 June 2007
31 October 2007 0.32 2,187,716 - (1,152,519)
(1,035,197) -
31 December 2007 0.32 1,729,036 - (1,729,036)
- -
31 March 2008 0.35 446,428 - (20,000)
(426,428) -
31 July 2008 0.35 - - 1,729,036
- 1,729,036
31 October 2008 0.35 - - 3,071,427
(2,000,000) 1,071,427
31 December 2008 0.35 1,836,239 215,217 -
(563,094) 1,488,362
31 December 2008 0.23 2,075,000 - -
- 2,075,000
11 June 2017 0.29 - 250,000 -
- 250,000
27 March 2018 0.65 - 650,000 -
- 650,000
8,274,419 1,115,217 1,898,908
(4,024,719) 7,263,825
The fully diluted share capital at 30 June 2008 may be analysed as follows:
No. of Ordinary 10p shares
2008 2007
Shares in issue at 30 June 79,088,009 51,945,677
Employee share options (see note 16,039,080 7,156,808
30)
Other options 7,263,825 8,274,419
Convertible loan notes - 5,180,048
Fully diluted number of shares 102,390,914 72,556,952
14. SHARE PREMIUM ACCOUNT
Group and Company
2008 2007
£'000 £'000
As restated
At 1 July 36,801 35,161
Premium on shares issued 8,193 1,904
Expenses of share issues (262) (264)
At 30 June 44,732 36,801
15. MERGER RESERVE 2008 2007
Group and Company £'000 £'000
At 1 July and 30 June 9,200 9,200
The merger reserve represents the premium attributable to shares issued in consideration
of the costs of acquisition of subsidiaries in
prior years as required by s131 of the Companies Act 1985.
16. EQUITY RESERVE 2008 2007
Group and Company £'000 £'000
At 1 July 1,136 1,364
Conversion of loan notes (1,136) (228)
At 30 June - 1,136
The equity reserve represents the equity component of convertible loan notes.
17. SHARE-BASED PAYMENT RESERVE 2008 2007
Group and Company £'000 £'000
As restated
At 1 July 868 488
Equity settled share-based payments - 539 380
employees
Options exercised during the year (53) -
At 30 June 1,354 868
The share-based payment reserve represents the cumulative charge to date in respect of
unexercised share options at the balance sheet
date.
18. WARRANT RESERVE 2008 2007
Group and Company £'000 £'000
As restated
At 1 July 1,204 190
Equity settled share-based payments - warrants 88 1,014
Warrants exercised during the year (476) -
At 30 June 816 1,204
The warrant reserve (share warrants granted under the terms of the Company's funding
activities in relation to new debt, broking fee and
follow on funding strategies) represents the cumulative charge to date in respect of
unexercised share warrants at the balance sheet.
19. RETAINED EARNINGS 2008 2007
Group £'000 £'000
At 1 July (81,903) (77,478)
Loss for the year attributable to (3,381) (4,403)
equity shareholders of the Company
Options exercised during the year 53 -
Warrants exercised during the year 476 -
Conversion of loan notes - (22)
At 30 June (84,755) (81,903)
20. RECONCILIATION LOSS BEFORE TAX TO NET
CASH OUTFLOW FROM OPERATING ACTIVITIES
Group
2008 2007
£'000 £'000
Loss before tax (3,661) (4,403)
Depreciation of property, plant and 105 124
equipment
Share-based payment expense 627 380
Finance costs 324 375
Operating cash out flow before movements (2,605) (3,524)
in working capital
(Increase)/decrease in receivables (1,352) 44
Decrease in payables (743) (83)
Cash used by operations (4,700) (3,563)
Interest paid (151) (326)
Net cash used in operating activities (4,851) (3,889)
This information is provided by RNS
The company news service from the London Stock Exchange
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