TIDMTWE
RNS Number : 9036Z
Twenty PLC
30 September 2009
30 SEPTEMBER 2009
TWENTY PLC
(AIM: TWE)
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
Twenty plc ('Twenty' or the 'Group'), the AIM quoted integrated marketing
solutions provider, announces its interim results for the six months ended 30
June 2009.
A copy of this statement is available on the Company's website at
www.twentyplc.com.
Enquiries:
Twenty Plc Tel: 01908 829 300
Ian Lancaster, Chief Executive
www.twentyplc.com
Daniel Stewart & Company plc Tel: 020 7776 6550
Graham Webster
Twenty Plc
Chairman's Statement
Dear Shareholder
Given the challenging economic climate, we are pleased to report a profitable
first half of the year. The resourceful management team has done excellent work
in lowering costs resulting in the return to profitability.
Market conditions remain tough and the group is experiencing pricing pressure on
some projects. However, the management team has responded and implemented
operational efficiencies in order to reduce the impact as much as possible.
Similarly, new business in the current environment takes longer to convert.
Whilst 2009 has so far been a challenging year, the actions on costs taken to
date and those in progress in the second half should hold the Group in good
stead for the future.
The board is focused on restoring shareholder value by organic developments
rather than acquisitions at present. We are grateful for the support shown by
our shareholders in this difficult period. I thank all our employees for their
hard work.
Mark Patron
Non-Executive Chairman
30 September 2009
Twenty Plc
Chief Executive's Statement
Introduction
I'm pleased to report that the group has returned an operating profit of
GBP0.24m in the first half of 2009, representing an improvement at an operating
profit level of over GBP1.0m on the first half of 2008 where we reported an
operating loss of GBP0.79m, when we were hit by a significant bad debt, together
with difficult trading conditions in our polywrapping and bulk printing
business.
The reduction in revenues from GBP8.5m in the same period 2008 to GBP6.4m in
first half 2009 is largely accounted for by the disposal of the polywrapping and
bulk printing business in August 2008.
The improvement in our operating profit has been achieved through a tight
control of operating costs, improvement in the quality of our delivery, the
disposal of our polywrapping and bulk printing business and the consolidation of
our properties.
We have completed our strategy of repositioning the group as an integrated
marketing services provider and look forward to the continuing benefits of this
in the coming years.
Financials
The interim results for Twenty Plc reflect the six-month period to 30 June 2009.
Comparatives include the direct communications division which was sold on 31
August 2008. The results have been prepared in accordance with International
Financial Reporting Standards (IFRS) and International Accounting Standards
(IAS).
The results for the period reflect an improved period of trading in which the
Group reports a return to profit, with a pre tax profit of GBP0.12m achieved
primarily through a review and reduction in the overhead costs within the
business by GBP1.0m against the same period last year.
Trading within both the analytical crm and data services and operational crm
segments reflects a significantly better trading performance this
year. Analytical crm and data services have seen revenue growth of 50% against
the same period last year, delivering an 11% return on sales.
Despite lower revenues in operational crm (as a result of the sales of the
direct communications division in August last year) the segment delivered a
profit before unallocated corporate expenses of GBP0.21m, an improvement of
GBP0.73m from the same period last year. The ecommerce segment delivered a loss
of GBP0.06m in the period as we have continued to invest time in the proposition
and integrating this business over the period.
The Group had net cash outflow during the period of GBP0.03m. Net cash generated
from operating activities of GBP0.47m was used to fund GBP0.08m in capital
expenditure and GBP0.42m in financing activities of which GBP0.30m related to
capital repayments of borrowings.
Cash and bank debt of GBP1.93m together with obligations under finance leases of
GBP0.53m resulted in net debt of GBP2.46m. Debt repayments, as at the Balance
Sheet Date, due in the next 12 months equate to GBP0.43m. The Group has an
invoice financing facility with the Bank of Scotland, which had a drawn down
balance of GBP1.04m at the balance sheet date. This balance has been reflected
in Other Creditors. In the last 12 months net debt (including invoice finance
facility drawdown balance) has decreased by GBP1.3m.
Outlook
The outlook for the business is directly related to the speed of recovery in the
overall economy as our revenues are largely driven by the rate of consumer
interaction our clients have with their customers. We have been under
significant cost pressure as our client base has reviewed their operating costs
and looked for efficiency savings to maintain margins. As a group we have
responded to these challenges through improving the efficiency of our operations
and reduced our overhead cost base to a level consistent with the level of our
forecast current revenues.
Whilst the business has returned to profit this year after the significant bad
debt experienced in 2008 the trading outlook remains subdued as the level of new
opportunities are more limited than in normal economic times.
Ian Lancaster
Chief Executive
30 September 2009
Twenty Plc
Consolidated Income Statement (Unaudited)
For the period ended 30 June 2009
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+---+
| | | | | | | | | | |6 months to | | 6 months | | Year to |
| | | | | | | | | | | | | to | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | 30.06.2009 | | 30.06.2008 | | 31.12.2008 |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | Unaudited | | Unaudited | | Audited |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | Note | | | | GBP | | GBP | | GBP |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Continuing operations | | | | | | | | | | | | |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Revenue | | | | | 2 | | | | 6,396,755 | | 8,516,907 | | 16,199,603 |
+-------------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Cost of | | | | | 2 | | | | (3,393,408) | | (4,455,168) | | (8,167,211) |
| sales | | | | | | | | | | | | | |
+-------------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Gross | | | | | | | | | 3,003,347 | | 4,061,739 | | 8,032,392 |
| Profit | | | | | | | | | | | | | |
+-------------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Administrative expenses | | | | | | | | (2,764,107) | | (4,861,310) | | (8,751,519) |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Operating Profit/(Loss) | | | | 2 | | | | 239,240 | | (799,571) | | (719,127) |
| pre-exceptional | | | | | | | | | | | | |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Exceptional item - | | | | | | | | - | | - | | (823,331) |
| goodwill impairment | | | | | | | | | | | | |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Operating Profit/(Loss) | | | | 2 | | | | 239,240 | | (799,571) | | (1,542,458) |
| post-exceptional | | | | | | | | | | | | |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Finance Income | | | | | | | | 1 | | 1,563 | | 3,562 |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Finance Costs | | | | | | | | (119,365) | | (185,368) | | (359,357) |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Profit/(Loss) before | | | | | | | | 119,876 | | (983,376) | | (1,898,253) |
| Taxation | | | | | | | | | | | | |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Taxation | | | | | 3 | | | | (33,564) | | 290,028 | | 39,622 |
+-------------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Profit/(Loss) for the period | | | | | | | | | | |
| from continuing operations | | | | | | | | | | |
+ +--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | 86,312 | | (693,348) | | (1,858,631) |
+----------------------------------+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Attributable to: | | | | | | | | | | | | |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Equity holders of the | | | | | | | | 86,312 | | (693,348) | | (1,858,631) |
| parent | | | | | | | | | | | | |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | 86,312 | | (693,348) | | (1,858,631) |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Earnings/(loss) per | | | | | | | | | | | | |
| share: | | | | | | | | | | | | |
+--------------------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Basic | | | | | 5 | | | | 0.16 p | | (1.44p) | | (3.85p) |
+-------------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| Diluted | | | | | 5 | | | | 0.16 p | | (1.44p) | | (3.85p) |
+-------------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| There are no recognised income or expenses for the current and prior year other than as stated above. As a consequence a statement |
| of comprehensive income is not presented. |
+ +
| | |
+-------------------------------------------------------------------------------------------------------------------------------------------------+---+
| | | | | | | | | | | | | | | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+
| |
+ +
| | |
+ +---+
| | |
+---+---------+------------+--+----+--------------+---------+------------+--+--------------+--------------+-------+-------------+--+--------------+---+
Twenty Plc
Group Statement of Financial Position (Unaudited)
As at 30 June 2009
+----+------+------+-------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | As at | | As at | | As at |
+----+------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | 30.06.2009 | | 30.06.2008 | |31.12.2008 |
+----+------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | Unaudited | | Unaudited | | Audited |
+----+------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | GBP | | GBP | | GBP |
+----+------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Assets | | | | | | | | | | | | | |
+-----------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Non-current assets | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Property, plant and | | | | | | | | 988,521 | | 1,240,443 | | 1,199,795 |
| equipment | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Software development | | | | | | | | 135,671 | | 251,109 | | 172,993 |
| costs | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Goodwill | | | | | | | | | 10,730,273 | | 11,654,615 | | 10,730,273 |
+-----------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Deferred tax | | | | | | | | 87,304 | | 147,719 | | 87,304 |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Total non-current assets | | | | | | | | 11,941,769 | | 13,293,886 | | 12,190,365 |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Current assets | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Trade and other | | | | | | | | 2,817,156 | | 4,936,526 | | 3,307,885 |
| receivables | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Cash and cash | | | | | | | | 3,814 | | 41,446 | | 38,727 |
| equivalents | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Total current assets | | | | | | | | 2,820,970 | | 4,977,972 | | 3,346,612 |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | | | | | |
+----+------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Total assets | | | | | | | | 14,762,739 | | 18,271,858 | | 15,536,977 |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | | | | | |
+----+------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Equity & liabilities | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Current liabilities | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Trade and other payables | | | | | | | | 4,266,431 | | 5,967,500 | | 4,918,274 |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Obligations under | | | | | | | | 204,598 | | 174,814 | | 244,150 |
| finance leases | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Current tax liabilities | | | | | | | | - | | - | | - |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Interest bearing loans, | | | | | | 520,322 | | 833,152 | | 433,332 |
| overdrafts and bank loans | | | | | | | | | | |
+---------------------------------------+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Total current | | | | | | | | 4,991,351 | | 6,975,466 | | 5,595,756 |
| liabilities | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | | | | | |
+----+------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Non-current liabilities | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Bank | | | | | | | | | 1,413,323 | | 1,760,909 | | 1,681,299 |
| loans | | | | | | | | | | | | | |
+-----------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Other creditors | | | | | | | | - | | 293,789 | | - |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Obligations under | | | | | | | | 322,475 | | 228,149 | | 406,102 |
| finance leases | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Total non-current | | | | | | | | 1,735,798 | | 2,282,847 | | 2,087,401 |
| liabilities | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | | | | | |
+----+------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Total liabilities | | | | | | | | 6,727,149 | | 9,258,313 | | 7,683,157 |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | | | | | |
+----+-------------+-------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Equity | | | | | | | | | | | | | |
+------------------+-------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Share | | | | | | | | | 4,833,860 | | 4,827,060 | | 4,827,060 |
| capital | | | | | | | | | | | | | |
+------------------+-------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Share premium account | | | | | | | | 3,979,364 | | 3,901,164 | | 3,901,164 |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Share options reserve | | | | | | | | 79,089 | | 63,073 | | 68,631 |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Retained earnings | | | | | | | | (856,723) | | 222,248 | | (943,035) |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Total equity | | | | | | | | 8,035,590 | | 9,013,545 | | 7,853,820 |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | | | | | |
+----+------+--------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| Total equity & | | | | | | | | 14,762,739 | | 18,271,858 | | 15,536,977 |
| liabilities | | | | | | | | | | | | |
+--------------------------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
| | | | | | | | | | | | | | | |
+----+------+------+-------------+--+---+--+--------+--+--+--+-------------+--+-------------+--+------------+
Twenty Plc
Consolidated Statement of Cash Flows (Unaudited)
For the period ended 30 June 2009
+----+--------+--+--------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | | | 6 months ended | | 6 months ended | | Year ended |
| | | | | | | 30.6.2009 | | 30.6.2008 | | 31.12.2008 |
+----+--------+-----------+--+--------+----+--------------------------+--+---------------------------+--+----------------------------+
| | | | | | | Unaudited | | Unaudited | | Audited |
+----+--------+-----------+--+--------+----+--------------------------+--+---------------------------+--+----------------------------+
| | | | | | | GBP | | GBP | | GBP | | GBP | | GBP | | GBP |
+----+--------+-----------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | | | | | | | | | | | | | |
+----+--------+-----------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Cash flow from operating activities | | | | | | | | | | | | |
+-------------------------------------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | | | | | | | | | | | | | |
+----+--------+-----------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Profit/(loss) for the period | | | | 86,312 | | | | (693,348) | | | |(1,858,631) |
+-------------------------------------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | | | | | | | | | | | | | |
+----+--------+-----------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Adjustments for: | | | | | | | | | | | | | | |
+-------------------------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Finance income | | | | (1) | | | | (1,563) | | | | (3,562) | | |
+-------------------------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Finance costs | | | | | 119,365 | | | | 185,368 | | | | 359,357 | | |
+----------------+--------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Taxation | | | | | 33,564 | | | | (290,028) | | | | (39,622) | | |
+----------------+--------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Depreciation of property, | | | 291,224 | | | | 387,356 | | | | 586,856 | | |
| plant and equipment | | | | | | | | | | | | | |
+----------------------------+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Amortisation of | | | | 37,322 | | | | | | | | 228,091 | | |
| software development | | | | | | | | | | | | | | |
| costs | | | | | | | | | | | | | | |
+-------------------------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Impairment of goodwill | | | | - | | | | | | | | 823,331 | | |
+-------------------------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Share-based payment | | | | 10,458 | | | | 19,642 | | | | 25,200 | | |
| expense | | | | | | | | | | | | | | |
+-------------------------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Gain on disposal of property, plant | | (949) | | | | (2,342) | | | | (140,000) | | |
| and equipment | | | | | | | | | | | | |
+-------------------------------------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | | | | | 490,983 | | | | 298,433 | | | | 1,839,651 |
+----+--------+-----------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Operating cash flows before | | | | | | | | | | | | |
| movements in working capital | | | | | | | | | | | | |
+ +----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | 577,295 | | | | (394,915) | | | | (18,980) |
+-------------------------------------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | | | | | | | | | | | | | |
+----+--------+-----------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | | | | | | | | | | | | | |
+----+--------+-----------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Decrease in receivables | | | | 490,729 | | | | 211,225 | | | | 1,658,408 | | |
+-------------------------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| (Decrease)/increase in | | | | (600,407) | | | | 919,285 | | | | (307,658) | | |
| payables | | | | | | | | | | | | | | |
+-------------------------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | | | | | (109,678) | | | | 1,130,510 | | | | 1,350,750 |
+----+--------+-----------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Cash generated from | | | | | | 467,617 | | | | 735,595 | | | | 1,331,770 |
| operations | | | | | | | | | | | | | | |
+-------------------------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | | | | | | | | | | | | | |
+----+--------+-----------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Taxation paid | | | | | | - | | | | - | | | | - |
+-------------------------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| Net cash generated from operating | | | | | | | | | | | | |
| activities | | | | | | | | | | | | |
+ +----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
| | | | | 467,617 | | | | 735,595 | | | | 1,331,770 |
+----+--------+--+--------+--+--------+----+-----------+--+-----------+--+-----------+--+------------+--+-----------+--+-------------+
Twenty Plc
Consolidated Statement of Cash Flows (Unaudited)
For the period ended 30 June 2009 (Continued)
+-----+--------+--------+--------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | 6 months ended 30.6.2009 | | 6 months ended 30.6.2008 | | Year ended 31.12.2008 |
+-----+--------+-----------------+--------+--------+--------+--------------------------------+----------+----------------------------------+----------+------------------------------------+
| | | | | | | Unaudited | | Unaudited | | Audited |
+-----+--------+-----------------+--------+--------+--------+--------------------------------+----------+----------------------------------+----------+------------------------------------+
| | | | | | | GBP | | GBP | | GBP | | GBP | | GBP | | GBP |
+-----+--------+-----------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Net cash from operating activities | | | | | | | | | | | | | |
+ +--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | 467,617 | | | | 735,595 | | | | 1,331,770 |
+-----------------------------------------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | | | | | | | | | | |
+-----+--------+-----------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Investing activities | | | | | | | | | | | | | | |
+--------------------------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Interest received | | | | 1 | | | | 1,563 | | | | 3,562 | | |
+--------------------------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Proceeds on disposal of | | | | 949 | | | | 2,342 | | | | 340,000 | | |
| property, plant and equipment | | | | | | | | | | | | | | |
+--------------------------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Purchases of property, plant | | | | (79,950) | | | | (328,617) | | | | (288,169) | | |
| and equipment | | | | | | | | | | | | | | |
+--------------------------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Payments for intangible assets | | | | - | | | | - | | | | (222,428) | | |
+--------------------------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Net cash used in investing | | | | | | (79,000) | | | | (324,712) | | | | (167,035) |
| activities | | | | | | | | | | | | | | |
+--------------------------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | | | | | | | | | | |
+-----+--------+-----------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | | | | | | | | | | |
+-----+--------+-----------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Financing activities | | | | | | | | | | | | | | |
+--------------------------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Interest paid | | | | | (119,365) | | | | (185,368) | | | | (359,357) | | |
+-----------------------+--------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Repayments of borrowings | | | | (180,986) | | | | (292,211) | | | | (771,641) | | |
+--------------------------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Repayments of obligations under finance leases | | (123,179) | | | | (90,577) | | | | (193,729) | | |
+--------------------------------------------------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Net cash from financing | | | | | | (423,530) | | | | (568,156) | | | | (1,324,727) |
| activities | | | | | | | | | | | | | | |
+--------------------------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | | | | | | | | | | |
+-----+--------+-----------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Net decrease in cash and cash equivalents | | | | | | | | | | | | |
+ +--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | (34,913) | | | | (157,273) | | | | (159,992) |
+--------------------------------------------------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| | | | | | | | | | | | | | | | | |
+-----+--------+-----------------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Cash and cash equivalents at the beginning of | | | | 38,727 | | | | 198,719 | | | | 198,719 |
| the period | | | | | | | | | | | | |
+--------------------------------------------------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
| Cash and cash equivalents at the end of the | | | | 3,814 | | | | 41,446 | | | | 38,727 |
| period | | | | | | | | | | | | |
+-----+--------+--------+--------+--------+--------+--------+-----------+--------+-----------+----------+-----------+----------+-----------+----------+-----------+----------+-------------+
Twenty Plc
Statement of Changes in Equity (Unaudited)
For the period ended 30 June 2009
+--+-------+---------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-----------+-+-------------+--+--+
| | | | | | | | | | | | | | | | | |
+--+-------+---------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | Group | | | | | | | | | | | | | | | |
+--+-------+---------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | | | | | | Share | | Share | | Share | | Retained earnings/ | | Total | | |
| | | | | | | Capital | | options | | premium | | (losses) | | | | |
| | | | | | | | | reserve | | account | | | | | | |
+--+-------+---------------+-+---+-+------------+-+-----------+---+------------+--+-------------------------+-+-------------+--+--+
| | | | | | | GBP | | GBP | | GBP | | GBP | | GBP | | |
+--+-------+---------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | | | | | | | | | | | | | | | | |
+--+-------+---------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | At 1 January 2008 | | | | 4,827,060 | | 43,431 | | 3,901,164 | | 915,596 | | 9,687,251 | | |
+--+-----------------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | Loss for the period | | | | - | | - | | - | | (1,858,631) | | (1,858,631) | | |
+--+-----------------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | Share options | | | | - | | 25,200 | | - | | - | | 25,200 | | |
+--+-----------------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | At 31 December 2008 | | | | 4,827,060 | | 68,631 | | 3,901,164 | | (943,035) | | 7,853,820 | | |
+--+-----------------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | Profit for the | | | | - | | - | | - | | 86,312 | | 86,312 | | |
| | period | | | | | | | | | | | | | | |
+--+-----------------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | Issue of new share | | | | 6,800 | | - | | 78,200 | | - | | 85,000 | | |
| | capital | | | | | | | | | | | | | | |
+--+-----------------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | Share options | | | | - | | 10,458 | | - | | - | | 10,458 | | |
+--+-----------------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | At 30 June 2009 | | | | 4,833,860 | | 79,089 | | 3,979,364 | | (856,723) | | 8,035,590 | | |
+--+-----------------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-------------+-------------+--+--+
| | | | | | | | | | | | | | | | | |
+--+-------+---------------+-+---+-+------------+-+-----------+---+------------+--+-------------+-----------+-+-------------+--+--+
+--+--+-------+--+--+--+-+--+--+--+-+----+--+--+--+-+-------------+--+--+------------+--+--+------+--+--+--+--+--+------------+--+--+--+--+--+
| Notes to the Unaudited Interim Financial Statements |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| For the period ended 30 June 2009 |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | General | | | | | | | | | | | | | | |
| | Information | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Twenty Plc is a company incorporated and domiciled in the UK and is listed on the Alternative | | |
| | Investment Market (AIM). The addresses of its registered office and principal place of business are | | |
| | disclosed in the introduction to the annual report. | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| 1 | Accounting | | | | | | | | | | | | | | |
| | Policies | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| a) | Basis of | | | | | | | | | | | | | | |
| | preparation | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | The interim financial statements have been prepared in accordance with International Financial | | |
| | Reporting Standards (IFRS's) adopted by the European Union, IFRIC interpretations and with those | | |
| | parts of the Companies Act 1985 applicable to companies reporting under IFRS and comply with | | |
| | International Accounting Standard (IAS) 34 'Interim Financial Reporting'. They have been prepared | | |
| | on a consistent basis with the accounting policies set out in the Annual Report and Accounts for | | |
| | the year ended 31 December 2008. The preparation of the financial statements requires management to | | |
| | make estimates and assumptions that affect the reported amounts of assets and liabilities at the | | |
| | year end and reported amounts of revenue and expenses during the financial year. Actual results | | |
| | could differ from the original estimates and assumptions. | | |
| | New accounting standards being applied starting on 1 January 2009 are as follows:* | | |
| | The revised IAS 1 (Presentation of Financial Statements) requires a number of changes to the | | |
| | presentation of financial statements. These include a requirement to present, in a statement of | | |
| | changes in equity, all owner changes in equity. All non-owner changes in equity (i.e. comprehensive | | |
| | income) are required to be presented in one statement of comprehensive income or in two statements | | |
| | (a separate income statement and a statement of comprehensive income). As a result, the Group has | | |
| | elected to present a consolidated income statement, a consolidated statement of comprehensive | | |
| | income and a consolidated statement of changes in equity.* | | |
| | IFRS 8 (Operating Segments) requires segment disclosures based on the components that the Chief | | |
| | Operating Decision Maker (i.e. the Board) monitors in making decisions about operating matters. | | |
| | Such components are identified on the basis of internal reports that the Board reviews regularly in | | |
| | allocating resources to segments and in assessing performance. This standard replaces the previous | | |
| | standard IAS 14, "Segment Reporting". IFRS 8 has not resulted in a changed definition of the | | |
| | Group's segments. | | |
| | Going Concern | | |
| | The board has taken decisions over the last 12 months to improve the cost base of the business | | |
| | which has enabled the Group to return to profit. Current market conditions remain tough, but | | |
| | following these actions, together with renegotiated payment terms with its bank and forecasts of | | |
| | future financial performance and position, the board consider it appropriate to adopt the going | | |
| | concern basis in preparing the interim accounts. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | The consolidated financial information has been prepared under the historical cost convention. | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| b) | Recently issued standards and interpretations not yet applied | | | | |
+-----+----------------------------------------------------------------------------------------------------+-----+---------------+-----+-----+
| | At the date of signing of these financial statements, there were a number of International | | |
| | Financial Reporting Standards and interpretations in issue but not yet effective. The directors | | |
| | anticipate that the adoption of these standards and interpretations will have no material impact on | | |
| | the Group's financial statements or will not be relevant to the activities of the Group. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| c) | Publication of non-statutory accounts | | | | | | | | |
+-----+------------------------------------------------------------------------------+-----+------+--+-----+-----+---------------+-----+-----+
| | The financial information contained in this document is unaudited and does not constitute statutory | | |
| | accounts within the meaning of section 240 of the Companies Act 1985. The information for the year | | |
| | ended 31 December 2008 is based on the company's statutory accounts for that year which received an | | |
| | unqualified audit report and have been filed with the Registrar of Companies. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| c) | Basis of consolidation | | | | | | | | | | | | |
+-----+----------------------------------+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | The consolidated financial statements comprise the financial statements of the company and its | | |
| | subsidiaries. The results of subsidiaries acquired or disposed of during the period are included in | | |
| | the consolidated income statement from the effective date of acquisition or disposals, as | | |
| | appropriate. | | |
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| Notes to the Unaudited Interim Financial Statements |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| For the period ended 30 June 2009 (Continued) |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | |
+-----+----------------------------------+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| d) | Revenue recognition | | | | | | | | | | | | |
+-----+----------------------------------+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Revenue comprises the invoiced amounts of services, excluding VAT, adjusted for amounts invoiced in | | |
| | advance at both the beginning and end of the year, such that revenue is recognised in line with | | |
| | performance under the contract. Profit on long term contracts is taken over the life of the | | |
| | contract when the outcome of the contract, or a separately identifiable portion of it, can be | | |
| | assessed with reasonable certainty. | | |
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| e) | Goodwill | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Goodwill arising from the acquisition of a subsidiary represents the excess of the fair value of | | |
| | the cost of acquisition over the group's net interest in the fair value of the identifiable net | | |
| | assets acquired. In accordance with IFRS3, goodwill is not amortised. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | Goodwill is reviewed for impairment annually or more frequently if events or changes in | | |
| | circumstances indicate that the carrying value is impaired. An impairment loss is recognised for | | |
| | the amount by which the carrying net value of the asset exceeds its recoverable amount. The | | |
| | recoverable amount is the higher of an asset's fair value less costs to sell and the value in use. | | |
| | For the purposes of assessing impairment, assets are grouped at the lowest levels for which there | | |
| | are separately identifiable cash flows (cash-generating units). An impairment loss recognised for | | |
| | goodwill is not reversed in a subsequent period. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Goodwill is allocated to cash generating units for the purpose of impairment testing. The | | |
| | allocation is made to those cash-generating units or groups of cash generating units that are | | |
| | expected to benefit from the business combination in which the goodwill arose identified according | | |
| | to the operating segment. | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | On disposal of a subsidiary, the attributable amount of goodwill is included in the determination | | |
| | of the profit or loss on disposal. | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-------+----------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| f) | Property, plant and | | | | | | | | | | | | | |
| | equipment | | | | | | | | | | | | | |
+-----+-----------------------------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Property, plant and equipment are stated at cost or valuation, net of depreciation and any | | |
| | provision for impairment. Depreciation has been calculated on the straight line method and aims to | | |
| | write down the cost, less estimated residual value, of property, plant and equipment over their | | |
| | expected useful lives, using the following periods: | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Leasehold | | | | Over the terms of the lease | | | | | | | | |
| | improvements | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+----------------------------------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Plant, machinery and | | 4 to 8 years | | | | | | | | | | |
| | database equipment | | | | | | | | | | | | |
+-----+----------------------------------+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Fixtures, fittings and | | 3 to 10 years | | | | | | | | | | |
| | office equipment | | | | | | | | | | | | |
+-----+----------------------------------+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Motor vehicles | | | | 4 years | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| g) | Research and | | | | | | | | | | | | | | |
| | development | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Costs associated with developing or maintaining computer software programmes are recognised as an | | |
| | expense as incurred. Costs that are directly associated with the development of identifiable and | | |
| | unique software products controlled by the Group, and that will probably generate economic benefits | | |
| | exceeding beyond one year, are recognised as intangible assets. Costs include the software | | |
| | development costs. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Computer software development costs recognised as assets are amortised on a straight line basis | | |
| | over their estimated useful lives (not exceeding three years) and are included in administration | | |
| | expenses within the consolidated income statement. | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| h) | Deferred | | | | | | | | | | | | | | |
| | taxation | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Deferred taxation is provided in full, using the liability method, in respect of all temporary | | |
| | timing differences between the tax base cost of the Group's assets and liabilities, and their | | |
| | carrying amount in the financial statements that have originated but have not been reversed by the | | |
| | balance sheet date. The deferred tax is calculated using tax rates enacted or substantially enacted | | |
| | by the balance sheet date. A deferred tax asset is recognised only to the extent that it is | | |
| | probable that future taxable profits will be available against which the asset can be utilised. | | |
| | Deferred tax is not discounted. | | |
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| Notes to the Unaudited Interim Financial Statements |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| For the period ended 30 June 2009 (Continued) |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| i) | Share-based | | | | | | | | | | | | | | |
| | payments | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | The Group issues equity-settled share-based payments to certain employees. Equity-settled | | |
| | share-based payments are measured at fair value (excluding the effect of non market-based vesting | | |
| | conditions) at the date of grant. The fair value determined at the grant date of the equity-settled | | |
| | share-based payments is expensed on a straight line basis over the vesting period, based on the | | |
| | group's estimate of the shares that will eventually vest and adjusted for the effect of non | | |
| | market-based vesting conditions. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Fair value is measured using a modified Black-Scholes pricing model. The expected life used in the | | |
| | model has been adjusted, based on management's best estimate, for the effects of | | |
| | non-transferability, exercise restrictions and behavioural considerations. | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| j) | Leasing | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Leases are classified as finance leases whenever the terms of the lease transfer substantially the | | |
| | risks and rewards of ownership to the lessee. All other leases are classified as operating leases. | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | Assets held under finance leases, are recognised as tangible fixed assets at their fair value at | | |
| | the inception of the lease or, if lower, at the present value of the minimum lease payments, and | | |
| | are depreciated over the shorter of the lease terms and their useful lives. The capital elements of | | |
| | future lease obligations are recorded as liabilities, while the interest elements are charged to | | |
| | the income statement over the period of the lease to produce a constant rate of charge on the | | |
| | balance of capital repayments outstanding. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | Rentals under operating leases are charged on a straight line basis over the lease term, even if | | |
| | the payments are not made on such a basis. Benefits received and receivable as an incentive to sign | | |
| | an operating lease are similarly spread on a straight line basis over the lease term, except where | | |
| | the period to the review date on which the rent is first expected to be adjusted to the prevailing | | |
| | market rate is shorter than the full lease term, in which case the shorter period is used. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| k) | Retirement | | | | | | | | | | | | | | |
| | benefits | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Pension payments are made in respect of defined contribution schemes. The annual payments are | | |
| | charged to the income statement. The company has no potential further liability in respect of | | |
| | pensions. | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| l) | Financial | | | | | | | | | | | | | | |
| | instruments | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Trade and | | | | | | | | | | | | | | |
| | other | | | | | | | | | | | | | | |
| | receivables | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Trade receivables are stated at original invoice amount less any allowances for uncollectable | | |
| | amounts. Bad debts are written off when identified. Other receivables are stated at cost. | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Trade and | | | | | | | | | | | | | | |
| | other payables | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Trade and other payables are initially measured at | | | | | | | | | | |
| | fair value. | | | | | | | | | | |
+-----+-----------------------------------------------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Interest | | | | | | | | | | | | | | |
| | income | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Interest income is recognised as interest accrues. | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Cash and cash | | | | | | | | | | | | | | |
| | equivalents | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Cash and short term deposits at the balance sheet date comprise cash at bank and in hand and short | | |
| | term deposits with a maturity of one month or less. | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Financial | | | | | | | | | | | | | | |
| | liabilities | | | | | | | | | | | | | | |
| | and equity | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Financial liabilities and equity instruments issued by the Company are classified according to the | | |
| | substance of the contractual arrangements entered into and the definitions of a financial liability | | |
| | and an equity instrument. An equity instrument is any contract that evidences a residual interest | | |
| | in the assets of the Company after deducting all of its liabilities. The accounting policies | | |
| | adopted for specific financial liabilities and equity instruments are set out below. | | |
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| Notes to the Unaudited Interim Financial Statements |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| For the period ended 30 June 2009 (Continued) |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Bank | | | | | | | | | | | | | | |
| | borrowings | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Interest-bearing bank loans and overdrafts are initially measured at fair value, and are | | |
| | subsequently measured at amortised cost, using the effective interest rate method. Any difference | | |
| | between the proceeds (net of transaction costs) and the settlement redemption of borrowings is | | |
| | recognised over the term of the borrowings in the Income Statement in the period in which they are | | |
| | incurred. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Equity | | | | | | | | | | | | | | |
| | instruments | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue | | |
| | costs. | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| m) | Provisions | | | | | | | | | | | | | | |
+-----+---------------------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | Provisions are recognised when a present obligation has arisen as a result of a past event, and it | | |
| | is probable that the Company will be required to settle that obligation. Provisions are measured at | | |
| | the directors' best estimate of the expenditure required to settle the obligation at the balance | | |
| | sheet date, and are discounted to present value where the effect is material. | | |
+-----+ +-----+-----+
| | | | |
+-----+ +-----+-----+
| | | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+----------+-------+----+--+---------------------+-----+------------+-----+------+--+-----+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| 2 | Segmental | | | | Analytical | | Operational | | Ecommerce | | 6 months | | | | |
| | analysis | | | | CRM & Data | | CRM | | | | ended | | | | |
| | | | | | Services | | | | | | 30.6.2009 | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | GBP | | GBP | | GBP | | GBP | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Revenue | | | | 1,662,967 | | 4,404,219 | | 329,569 | | 6,396,755 | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Cost of | | | | (918,896) | | (2,238,306) | | (236,206) | | (3,393,408) | | | | |
| | sales | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Gross | | | | 744,071 | | 2,165,913 | | 93,363 | | 3,003,347 | | | | |
| | Profit | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Administrative | | | | (557,722) | | (1,954,202) | | (151,860) | | (2,663,784) | | | | |
| | expenses | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Segment | | | | 186,349 | | 211,711 | | (58,497) | | 339,563 | | | | |
| | result | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Unallocated | | | | | | | | (100,323) | | | | |
| | corporate expenses | | | | | | | | | | | | |
+-----+---------------------------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Operating | | | | | | | | | | 239,240 | | | | |
| | profit | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Finance | | | | | | | | | | 1 | | | | |
| | Income | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Finance | | | | | | | | | | (119,365) | | | | |
| | Costs | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Profit | | | | | | | | | | 119,876 | | | | |
| | before | | | | | | | | | | | | | | |
| | Taxation | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Taxation | | | | | | | | | | (33,564) | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Profit | | | | | | | | | | 86,312 | | | | |
| | for the | | | | | | | | | | | | | | |
| | period | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| Notes to the Unaudited Interim Financial Statements |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| For the period ended 30 June 2009 (Continued) |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | Analytical | | Operational | | Ecommerce | | 6 months | | | | |
| | | | | | CRM & Data | | CRM | | | | ended | | | | |
| | | | | | Services | | | | | | 30.6.2008 | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | GBP | | GBP | | GBP | | GBP | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Revenue | | | | 1,110,617 | | 7,001,413 | | 404,877 | | 8,516,907 | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Cost of | | | | (563,864) | | (3,690,673) | | (200,631) | | (4,455,168) | | | | |
| | sales | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Gross | | | | 546,753 | | 3,310,740 | | 204,246 | | 4,061,739 | | | | |
| | Profit | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Administrative | | | | (567,523) | | (3,827,309) | | (245,193) | | (4,640,025) | | | | |
| | expenses | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Segment | | | | (20,770) | | (516,569) | | (40,947) | | (578,286) | | | | |
| | result | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Unallocated | | | | | | | | (221,285) | | | | |
| | corporate expenses | | | | | | | | | | | | |
+-----+---------------------------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Operating | | | | | | | | | | (799,571) | | | | |
| | loss | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Finance | | | | | | | | | | 1,563 | | | | |
| | Income | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Finance | | | | | | | | | | (185,368) | | | | |
| | Costs | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Loss | | | | | | | | | | (983,376) | | | | |
| | before | | | | | | | | | | | | | | |
| | Taxation | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Taxation | | | | | | | | | | 290,028 | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Loss for | | | | | | | | | | (693,348) | | | | |
| | the | | | | | | | | | | | | | | |
| | period | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+--+------------------+--+---------------+-----+---------------+-----+-----+
| | Operational CRM | | |
| | Delivery of interaction with our client's customers. This includes contact centre services, | | |
| | fulfillment services and campaign services | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | Analytical CRM | | |
| | Provision of marketing platform design, development and support and customer data analytical | | |
| | services. | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | E-Commerce | | | | | | |
| | Design, development and support of client's e-commerce platforms. | | | | | | |
+-----+---------------------------------------------------------------------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | |
+-----+---------------------------------------------------------------------------------+--+---------------+-----+---------------+-----+-----+
| | Administrative costs are allocated to segments where they are | | | | | | |
| | directly attributable. | | | | | | |
+-----+---------------------------------------------------------------------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | All revenue and profit has been generated solely within the United | | | | | | |
| | Kingdom. | | | | | | |
+-----+---------------------------------------------------------------------------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | The group reports assets and liabilities internally on a statutory entity basis and therefore has | | |
| | not reported on assets and liabilities by segment. | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| 3 | Taxation | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | The taxation charge has been estimated by the group based on previous taxation adjustments and | | |
| | future rates. | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| 4 | Dividends | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | The directors do not recommend the payment of an | | | | | | | | |
| | interim dividend. | | | | | | | | |
+-----+-----------------------------------------------------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| Notes to the Unaudited Interim Financial Statements |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| For the period ended 30 June 2009 (Continued) |
+--------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| 5 | Earnings | | | | | | | | | | | | | | |
| | per share | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | The calculation of the basic and diluted earnings per share attributable to the ordinary equity holders of the |
| | company is based on the following data: |
+-----+--------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | 6 months | | 6 months to | | Year | | |
| | | | | | | | | | | to | | | | to | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | 30.06.2009 | | 30.06.2008 | | 31.12.2008 | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | Unaudited | | Unaudited | | Audited | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | GBP | | GBP | | GBP | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Earnings | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Earnings/(loss) for the purposes of | | | | 86,312 | | (693,348) | | (1,858,631) | | |
| | basic earnings per share | | | | | | | | | | |
+-----+-------------------------------------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Effect of dilutive | | | | | | - | | - | | - | | |
| | potential ordinary | | | | | | | | | | | | |
| | shares: | | | | | | | | | | | | |
+-----+---------------------------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Earnings/(loss) for the purposes of | | | | 86,312 | | (693,348) | | (1,858,631) | | |
| | diluted earnings per share | | | | | | | | | | |
+-----+-------------------------------------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Goodwill | | | | | | | | - | | - | | 823,331 | | |
| | impairment | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Software development & consultancy | | | | - | | - | | 526,086 | | |
| | write off, Inside track bad debt & | | | | | | | | | | |
| | excess property costs | | | | | | | | | | |
+-----+-------------------------------------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Earnings/(loss) for the purposes of | | | | 86,312 | | (693,348) | | (509,214) | | |
| | adjusted earnings per share (basic & | | | | | | | | | | |
| | diluted) | | | | | | | | | | |
+-----+-------------------------------------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | 6 months | | 6 months to | | Year | | |
| | | | | | | | | | | to | | | | to | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | 30.06.2009 | | 30.06.2008 | | 31.12.2008 | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | Unaudited | | Unaudited | | Audited | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | No. | | No. | | No. | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Number of | | | | | | | | | | | | | | |
| | shares | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Weighted average | | | | | | 53,342,423 | | 48,270,600 | | 48,270,600 | | |
| | number of ordinary | | | | | | | | | | | | |
| | shares | | | | | | | | | | | | |
+-----+---------------------------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Effect of dilutive potential | | | | | | | | | | |
| | ordinary shares: | | | | | | | | | | |
+-----+-------------------------------------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Management | | | | | | | | 4,092,066 | | 3,572,024 | | 3,994,062 | | |
| | options | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Broker & | | | | | | | | 1,447,368 | | 1,447,368 | | 1,447,368 | | |
| | Nomad | | | | | | | | | | | | | | |
| | options | | | | | | | | | | | | | | |
+-----+----------------+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Warrants | | | | | | | | 6,800,000 | | 6,800,000 | | 6,800,000 | | |
+-----+----------------+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Weighted average number of ordinary shares for the | | 65,681,857 | | 60,089,992 | | 60,512,030 | | |
| | purposes of diluted EPS | | | | | | | | |
+-----+-----------------------------------------------------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Basic and diluted Earnings/(Loss) per Share (in | | 0.16 | | (1.44) | | (3.85) | | |
| | pence) | | | | | | | | |
+-----+-----------------------------------------------------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Adjusted Earnings/(Loss) per share (basic & | | 0.16 | | (1.44) | | (1.05) | | |
| | diluted) | | | | | | | | |
+-----+-----------------------------------------------------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | Share options and warrants do not have a dilutive effect because the exercise price was above the | | |
| | average share price during the period. | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| 6 | Related Party Transaction | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+-----+----------+-----+-+--------+-+-------------+-+-------------+-----+---------------+--+---------------+-----+---------------+-----+-----+
| | On 16 February 2009 the Company issued 6,800,000 ordinary 0.1p shares for GBP85,000 to the vendors | | |
| | of Emaginating Limited in settlement of the deferred consideration following the acquisition by | | |
| | Twenty Plc in December 2006. Of the new shares issued, 3,400,000 were issued to Professor Martin | | |
| | Clarke who is a non executive director of Twenty Plc. | | |
+-----+--------------------------------------------------------------------------------------------------------------------------+-----+-----+
| | | | | | | | | | | | | | | | | |
+--+--+-------+--+--+--+-+--+--+--+-+----+--+--+--+-+-------------+--+--+------------+--+--+------+--+--+--+--+--+------------+--+--+--+--+--+
Independent review report to Twenty Plc
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2009 which comprises the consolidated income statement, group statement of
financial position, consolidated statement of cash flows, consolidated statement
of changes in equity and related notes. We have read the other information
contained in the half-yearly financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the Company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim
Financial Information Performed by the Independent Auditor of the Entity' issued
by the Auditing Practices Board for use in the United Kingdom. Our work has been
undertaken so that we might state to the Company those matters we are required
to state to them in an independent review report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this report, or for
the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Rules of the Alternative Investment
Market.
As disclosed in note 1(a), the annual financial statements of the group and
company are prepared in accordance with IFRS as adopted by the European Union.
The condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, 'Interim Financial Reporting' as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 June 2009 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union and the Rules of the Alternative Investment Market.
Kingston Smith LLP
30 September 2009
Devonshire House
60 Goswell Road
London
EC1M 7AD
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QKLFLKKBEBBE
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