RNS Number : 0873J
NBA Quantum PLC
27 November 2008
NBA Quantum Plc
27 November 2008
Preliminary Results for the Year ended 30 June 2008
Introduction
In our interim results for the six months ending 31st December 2007 we were able to demonstrate that the changes introduced by the Board
in 2007 had begun to deliver benefits as the company reported a return to profitability.
Although the second half of the year has proved to be more difficult than we anticipated, we have still managed to generate a profit. In
a year in which many companies are reporting losses, I am pleased to announce that the full year's profit before tax was �106,243 (2007 :
�204,541).
The measures implemented in 2007 have helped to maintain profit levels in difficult trading conditions and the Board is determined to
continue with its policy of keeping overheads under review and strengthening the management structure. I am quite confident therefore that
even in the current economic climate we will see improvements in the Group's performance in the next 12 months.
This performance has been achieved by a combination of the Board's policies and the dedication and hard work of the management team and
staff under the direction of the Chief Executive, Peter Elliott-Hughes. My thanks go to all those involved at this difficult time.
Group Companies
Quantum International ( QIC ) and Taylor Rumford Consulting ( TRCL )
The total integration of Taylor Rumford is now more or less complete and the benefits to the Group can now be more clearly seen.
In addition, as referred to in the half year results, I was able to report with great pleasure the appointment of Jon Coates to the
management team as Operations Director for the UK and Europe. Jon's appointment has been a great success and he has added significantly to
the strength of the management team in the short period he has been with us.
In addition we have continued to add to the strength of the UK operation by the acquisition of 51% of the shares in Rock Hunter in this
period. Rock Hunter offers a wide range of services to the construction industry including visualisation services for architectural clients,
multi-media services to dispute resolution issues and marketing and design for construction and engineering companies. We believe that the
potential for this range of services will grow substantially in the near future and that Rock Hunter will bring considerable benefits to the
Group.
Quantum International Consulting Pty. Ltd ( QICA )and Lucid Edge Pty. Ltd ( LE)
Whilst the operations of QICA have been less active this year those for LE have been encouraging. The Board retains high hopes that this
region will show improved results during the next 12 months and has taken the necessary steps to streamline this operation in preparation.
Quantum Qatar (QQ)
As reported in last year's accounts this company was formed as a joint venture between QIC and APM WLL in Qatar. Its performance since
then has been tremendously encouraging and has added significantly to the strength of the parent company in the short time since its start
up.
The initiative taken by the Chief Executive, with the full support of the Board, has proved therefore to be a very wise move.
Bionic Productions Ltd.
There had been little change in the market possibilities for this company during the year from that previously reported but there are
opportunities which are currently being developed, the outcomes of which are felt will be successful.
DMS International Inc. ( DMS )
Even with the current trading conditions in the USA, this still remains a potential market place for the company in the future and the
Board continues to monitor the situation. In the meantime, the Group continues to benefit from the terms of DMS's buy-back commitments.
Summary
I am very encouraged by developments within the Group during 2008 as we have consolidated our position in the market place, during a
period of very difficult trading conditions.
The Board and Chief Executive continue taking steps to ensure that we have maintained our diversified marketing and trading strategy
which we believe will now work to our advantage. We are looking forward to 2009 and anticipate a further improvement in our trading
opportunities both in the UK and overseas in this period.
Robert Jervis
Chairman
Date : 27 November 2008
NBA Quantum Plc
Consolidated Income Statement for the Year Ended 30 June 2008
Note 2008 2007
� �
Revenue
Continuing operations 2 3,525,496 3,395,272
Discontinued operations 2 - 500,427
3,525,496 3,895,699
Employee benefits expense 3 721,244 1,295,601
Depreciation expense 3 29,844 45,134
Other operating costs 3 2,643,501 2,321,604
3,394,589 3,662,339
Continuing operations 130,907 141,933
Discontinued operations - 91,427
Profit from operating activities before
disposal 130,907 233,360
of discontinued business
Loss on disposal of business
Discontinued operations - (38,999)
Total operating profit 130,907 194,361
Finance income 4 13,841 42,226
Finance expense 5 (38,505) (32,046)
Profit before tax 106,243 204,541
Income tax expense (171,755) (239,450)
Loss for the year � (65,512) � (34,909)
Attributable to:
Equity shareholders of the company (101,774) 3,804
Minority interest 36,262 (38,713)
� (65,512) � (34,909)
Basic earnings per share from:
Continuing operations 6 (1.50)p 0.63p
Continuing and discontinued operations 6 (1.50)p 0.06p
Diluted earnings per share from:
Continuing operations 6 (1.42)p 0.60p
Continuing and discontinued operations 6 (1.42)p 0.05p
The comparative numbers shown above have been restated from those previously reported as the Group has adopted International Financial
Reporting Standards (IFRS) for the first time this year and has restated comparatives accordingly. A reconciliation from the numbers
previously reported can be found later in this announcement.
Consolidated Statement of Recognised Income and Expense for the Year Ended 30 June 2008
2008 2007
� �
Loss on foreign currency (28,271) (78,943)
translation
Net expense recognised directly (28,271) (78,943)
in equity
(Loss)/profit for the year from (101,774) 3,804
operations
Total recognised income and expense for the year � (130,045) � (75,139)
(all attributable to equity shareholders of the company)
Consolidated Balance Sheet
As At 30 June 2008
2008 2007
Assets � �
Non current assets
Property, plant and 59,113 54,128
equipment
Goodwill 3,771,510 3,682,632
Other intangible assets 77,917 -
Investments 806 4,807
3,909,346 3,741,567
Current assets
Trade receivables 888,168 1,217,379
Other current assets 1,386,578 1,517,267
Cash and cash equivalents 574,597 415,816
2,849,343 3,150,462
Total assets � 6,758,689 � 6,892,029
Equity and liabilities
Equity attributable to equity shareholders of the parent
Share capital 704,529 674,529
Share premium 5,295,375 5,259,375
Retained earnings (817,835) (716,061)
Currency translation reserve (107,214) (78,943)
Total parent shareholders' 5,074,855 5,138,900
equity
Minority interest 28,807 (44,006)
Total equity 5,103,662 5,094,894
Non current liabilities
Long term borrowings 284,547 310,339
Obligations under financial
leases -
due over one year 20,795 -
Deferred tax 225,815 291,708
531,157 602,047
Current liabilities
Trade and other payables 888,749 1,020,393
Current portion of long term 117,000 106,000
borrowings
Current tax payable 107,724 63,694
Obligations under finance
leases -
due within one year 10,397 5,001
1,123,870 1,195,088
Total liabilities 1,655,027 1,797,135
Total equity and liabilities � 6,758,689 � 6,892,029
Consolidated Statement of Changes in Equity for the Year Ended 30 June 2008
Called up Share Currency
Share Premium Translation Retained Minority Total
Capital Account Reserve Earnings Interest Equity
� � � � � �
Balance 1 July 2006 674,529 5,259,375 - (681,152) (5,293) 5,247,459
Loss for the year - - - (34,909) - (34,909)
Loss on foreign currency - - (78,943) - - (78,943)
translation
Movement in minority interest - - - - (38,713) (38,713)
Balance 30 June 2007 674,529 5,259,375 (78,943) (716,061) (44,006) 5,094,894
Issue of shares (net of issue 30,000 36,000 - - - 66,000
costs)
Loss for the year - - - (101,774) - (101,774)
Loss on foreign currency - - (28,271) - - (28,271)
translation
Movement in minority interest - - - - 72,813 72,813
Balance 30 June 2008 � 704,529 �5,295,375 � (107,214) � (817,835) � 28,807 � 5,103,662
Consolidated Cash Flow Statement for the Year Ended 30 June 2008
Note 2008 2007
� �
Cash flows from operating
activities
Profit for the year before 106,243 204,541
taxation
Adjustment for:
Depreciation 29,844 45,134
Loss on disposal of assets 9,934 18,764
Loss on disposal of - 610,065
business
Net negative goodwill (23,452) -
Finance income (13,841) (42,226)
Finance expense 38,505 32,046
40,990 663,783
Operating cash flows before movement in working capital 147,233 868,324
Decrease in trade and 287,441 155,661
other receivables
Decrease/(increase) in 232,985 (730,827)
prepayments
(Decrease) in trade and (31,248) (262,769)
other payables
(Decrease)/increase in (65,893) 188,558
provisions
423,285 (649,377)
Cash generated from operations 570,518 218,947
Income taxes paid (208,369) (125,185)
Interest paid (38,505) (32,046)
(246,874) (157,231)
Net cash generated from operating activities 323,644 61,716
Cash flows from investing
activities
Interest received 38,541 17,526
Purchase of intangible (82,500) -
assets
Purchase of plant and (53,576) (5,264)
equipment
Receipts from sales of plant and equipment 5,385 42,099
Purchase of fixed asset - (4,001)
investment
Purchase of subsidiary - additional (88,878) (112,616)
consideration
Net cash outflow for new purchases of (11,246) -
subsidiaries
Net cash used in investment (192,274) (62,256)
activities
Cash flows from financing 131,370 (540)
activities
Repayment of borrowings (21,959) (127,297)
Repayment of obligations under finance leases (5,416) (20,178)
Receipt from issue of 66,000 -
shares
Net cash generated/(used) in financing activities 38,625 (147,475)
Net increase/(decrease) in cash and cash equivalents 169,995 (148,015)
Cash and cash equivalents at 1 415,816 548,922
July 2007
Effect of foreign exchange rate changes on cash and cash (11,214) 14,909
equivalents
Cash and cash equivalents at � 574,597 � 415,816
30 June 2008
Notes
1. The financial information set out above does not constitute the Company's statutory accounts for the year ended 30 June 2008.
The auditors
have reported on the accounts to 30 June 2008. Their report was unqualified and did not contain a statement under Section 237 (2)
or (3) of the
Companies Act 1985. The statutory accounts for 2008 will be finalised on the basis of the preliminary information presented by the
Directors
in this preliminary statement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
Basis of preparation
The financial information is presented in pounds sterling and is prepared on the historical cost basis.
The financial statements, upon which this financial information is based, have been prepared using accounting policies
consistent with
International Financial Reporting Standards (IFRS). The disclosures required by IFRS 1 concerning the transition from UK GAAP to
IFRS are
given in note 26.
The financial information has been prepared on a going concern basis in accordance with International Financial Reporting Standards
("IFRS") as
issued by the International Accounting Standards Board ("IASB") at 30 June 2008 as well as all interpretations issued by the
International
Financial Reporting Interpretations Committee ("IFRIC") at 30 June 2008. The Group has not availed itself of early adoption options
in such
standards and interpretations.
In the current year, the group has adopted all of the new and revised Standards and Interpretations issued by the IASB and the IFRIC
of the
IASB that are relevant to its operations and effective for accounting periods beginning on 1 July 2007. The adoption of the
following IFRSs has
not impacted the audited financial statements.
IFRIC 10 - Interim Financial Reporting and Impairment
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been
applied in these
financial statements were in issue but not yet effective:
IFRS 8 - Operating Segments
IAS 23 - Borrowing Costs
IFRIC 11 - Group and Treasury Share Transactions
IFRIC 12 - Service Concession Arrangements
These Standards and Interpretations are not expected to have any significant impact on the group's financial statements, in their
periods of initial
application, except for the additional disclosures on operating segments when the relevant standard comes into effect for periods
commencing
on or after 1 January 2009.
2. Segment Analysis
The primary reporting format is by geographical area and the secondary reporting format is by business segment.
Primary Analysis by Geographical Area
The United Kingdom is the home country of the group and the majority of all of the group's operations occur within the United
Kingdom.
30 June 2008 UK USA Australia Qatar Total
Continuing � � � � �
Operations
Revenue from sales 3,249,495 5,576 518,307 617,539 4,390,917
Inter-segment sales 860,950 - 4,471 - 865,421
Total external sales � 2,388,545 � 5,576 � 513,836 � 617,539 � 3,525,496
Turnover by geographical destination is as follows:
2008 2007
� �
UK 1,546,282 2,171,498
Middle East 1,400,269 -
Australia 197,694 937,711
Rest of the world 381,251 286,063
3,525,496 3,395,272
Discontinued operations
USA - 500,427
� 3,525,496 � 3,895,699
3. Operating (Loss)/Profit
This is stated after charging/(crediting)
2008 2007
�
Wages and salaries 655,065 1,155,168
Social security costs 58,979 120,753
Other pension costs 7,200 19,680
Staff costs including directors � 721,244 � 1,295,601
Depreciation of tangible fixed assets
- owned assets 28,063 36,938
- assets held under finance lease 1,781 8,196
Loss on disposal of fixed assets 9,934 18,764
Auditors' remuneration
- audit - company 10,000 8,000
- group 27,500 24,500
Operating lease rentals
- plant and machinery 6,297 12,099
- land and buildings 64,007 130,414
4. Finance Income
2008 2007
� �
Bank interest receivable 13,841 17,526
Other interest receivable - 24,700
� 13,841 � 42,226
5. Finance Costs
2008 2007
� �
Bank loan interest 37,741 31,040
Hire purchase contract interest 764 1,006
� 38,505 � 32,046
6. Earnings Per Share
Consolidated earnings per ordinary share have been calculated by dividing the profit/(loss) for the year by the weighted average
number of ordinary shares in issue for the year.
2008 2007
Continuing Continuing & Continuing Continuing &
operations discontinued operations discontinued
Numerators: earnings � (101,774) � (101,774) � 42,803 � 3,804
attributable to equity
No. No. No. No.
Denominators:
Weighted average
number of equity
shares:
Basic 6,814,133 6,814,133 6,745,281 6,745,281
Effect of dilutive 337,500 337,500 390,000 390,000
potential ordinary
shares
Diluted 7,151,633 7,151,633 7,135,281 7,135,281
7. Explanation of Transition to IFRS
The group has applied IFRS 1 "First Time Adoption of International Financial Reporting Standards" as a starting point for reporting
under IFRS. The group's date of transition is 1 July 2006 and comparative information has been restated to reflect in the group's adoption
of IFRS except where otherwise required or permitted by IFRS 1.
IFRS 1 requires an entity to comply with each IFRS and IAS effective as the reporting date for its first financial statements prepared
under IFRS. As a general rule, IFRS 1 requires such standards to be applied retrospectively. However, the standard allows several optional
exemptions from full retrospective application.
The group has elected to take advantage of the following exemptions:
* business combinations made prior to 1 July 2006 will not be accounted for under IFRS 3 "Business Combinations" and
as such the
value of goodwill in the balance sheet at that date will be the same amount under IFRS as that recorded in the UK GAAP
financial
statements, subject to the completion of an annual impairment review;
* to deem cumulative translation differences for all foreign operations to be zero as at 1 July 2006.
The reconciliations of equity at 1 July 2006 (date of transition to IFRS) and at 30 June 2007 (date of last UK GAAP financial
statements) and the reconciliation of loss for 2006 and 2007, as required by IFRS1, are set out below.
2007
�
Reconciliation of loss from UK GAAP to IFRS
UK GAAP loss for the financial period (286,233)
Amortisation of goodwill 251,324
Loss from continuing operations - IFRS �(34,909)
Reconciliation of net assets from UK GAAP to IFRS
Net assets per UK GAAP at 30 June 2007 4,843,570
Amortisation of goodwill 251,324
Net assets per IFRS at 30 June 2007 � 5,094,894
8. Goodwill
International Financial Reporting Standards require goodwill to be subject to review for impairment rather than regular
amortisation. Previously amortised amounts in the UK GAAP accounts for the year ended 30 June 2007 of �251,324 have been reversed in the
IFRS income statement. The effect of the transition on the balance sheet is shown above.
A detailed reconciliation document has been prepared and was circulated with the interim financial statements dated 31 December
2007. This document is published on the group website.
9. Copies of the Annual Report and Financial Statements
The Annual Report and Financial Statements are being posted to shareholders on 27 November 2008 and will shortly be available to
download from the Company's website at www.nbagroup.com. Further copies will be available from the company's registered office, 3000,
Cathedral Hill, Guildford, Surrey GU2 7YB.
Contact:
Angela McBride, Finance Director
NBA Quantum Plc 01483 243531
Brewin Dolphin (NOMAD) 0845 270 8600
Mark Brady / Alison Barrow
This information is provided by RNS
The company news service from the London Stock Exchange
END
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