TIDMTWE
RNS Number : 4684O
Twenty PLC
30 June 2010
30 June 2010
TWENTY PLC
(AIM: TWE)
FINAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2009
The Board of Twenty Plc ('Twenty' or 'the Group'), an investment vehicle
focusing on the marketing services sector, announces its final results for the
year ended 31 December 2009.
The Annual Report is available for downloading from the Company's website
www.twentyplc.com.
Enquiries:
Twenty Plc
Tel: 01908 329800
Ian Lancaster, Chief Executive
www.twentyplc.com
Daniel Stewart & Company plc
Tel: 020 7776 6550
Emma Earl
Paul Shackleton
CHAIRMAN'S STATEMENT
As highlighted in previous reports the Board has been focused on restoring
shareholder value.
The Board undertook a strategic review of the business which resulted in the
disposal of the Dataforce Interact business in May 2010. The chief executive and
finance director have done well steering this disposal through to completion.
This disposal has allowed the Company to eliminate its gearing.
On behalf of the Board I would like to thank Prof. Martin Clarke for his
contribution to the company as a non-executive director from 2005 to March 2010
since founding Twenty plc with Ian Lancaster. I would like to welcome Rob
Unsworth to the Board. Rob joined the Board in January 2010 as financial
non-executive director.
The Board does not recommend payment of a final dividend.
On behalf of the Board I would like to thank our clients for their ongoing
confidence in our service and products, to the management and staff for their
outstanding contribution in a challenging year and to shareholders for their
continued support.
Mark Patron
Non-Executive Chairman
30 June 2010
CHIEF EXECUTIVE'S STATEMENT
Introduction
During the second half of 2009 the Board conducted a strategic review of the
Group's business operations with the intention of restoring shareholder value
within the Group. As a result of this review the Dataforce Group business was
separated on the 1st August 2009 into two distinct operating companies around
defined service offerings. The contact centre, fulfilment and business
processing operations were rebranded as Dataforce Interact Limited which
incorporated all the customer interaction activities across the Group. The
database, data and analytical services were rebranded as Dataforce Online
Limited which encompassed all the customer intelligence activities.
As a result of our strategic review the decision was made to focus on
accelerating our development of the Dataforce Online customer intelligence
business and to dispose of the Dataforce Interact business. This business was in
a very good shape with the majority of clients having renewed contract terms
during the year which the Board felt despite the economic climate would make it
appealing to a strategic acquirer. The investments made in facilities with the
new contact centre and fulfilment operations coming on stream in 2008 in
addition to the investments made in staff development and ISO 9002 and PCI
quality systems also contributed to this being an optimum moment to realise our
investment.
We were pleased to conclude the sale of this operating subsidiary in May 2010
for GBP9.25m (including deferred consideration of GBP2.95m and after net of
current assets adjustments) which has enabled the group to recover the majority
of the original investment of GBP10.5m made in acquiring the entire Dataforce
Group in April 2006 whilst retaining the Dataforce Online customer intelligence
business.
In addition, in January 2010, the Group acquired The Moving Service Limited,
trading as Moveme, for a nominal upfront fee. The acquisition was an important
strategic acquisition which complimented the Dataforce Online Limited activities
and cemented our relationship and activities for a major client in the Royal
Mail.
The sale of the Dataforce Interact subsidiary will result in the rebranding of
all the operating businesses around the core Twenty plc brand to unify the Group
around a common identity and core skills within the Customer Intelligence and
Digital market segments. This is one of the fastest growing segments within the
marketing services space and one that the Board feels well placed to exploit.
The Group has also fully repaid all bank debt and is now in a position to invest
in both the organic growth of the business and to consider suitable further
acquisitions.
Financials
The results for the prior period include 8 months trading of the Direct
Communications division which was sold on 31 August 2008.
For the full year ended 31 December 2009 we report a pre tax loss of GBP0.39m
(2008: GBP1.9m loss). This reflects a reduction of GBP0.51m since the half year
where we reported a pre tax profit of GBP0.12m. This is largely due to GBP0.49m
of one off costs, which if adjusted for would reflect a pre tax profit of
GBP0.10m. At an underlying operating profit level the result for the year was
GBP0.30m and reflects an improvement of GBP0.49m on the 2008 underlying
operating profit after adjusting for one off factors.
The one off costs in 2009 are as follows :
- Provision for bad debt of GBP0.16m as a result of Readers Digest going into
administration. Credit protection policy cover was removed from the Readers
Digest when its US parent went into Chapter 11.
- An impairment charge of GBP0.09m to impair the value of capitalised software
development in the e-commerce business following a review of its future value.
The carrying value of capitalised software at year end is now zero.
- Following a restructure of the fulfilment operation in the early part of 2009,
the warehouse attached to the contact centre in Northampton was excess to
requirements. This warehouse cost GBP0.07m during the year. As part of the
disposal of the Interact business in May 2010, the lease on this warehouse was
surrendered at a one off cost of GBP0.09m relieving the company of a future
liability on the property of GBP0.3m through to the break point in the lease.
- The directors have also reviewed the carrying value of fixed assets that are
obsolete as a result of the restructure of the group and have therefore written
down the net book value on these assets incurring a one off charge of GBP0.16m.
2009 saw a reduction in activity from existing clients as the economic climate
impacted marketing spend across most sectors. This resulted in a 20% reduction
in sales from operations (excluding Direct Communications). The directors
reacted quickly when signs began to emerge that sales volumes were likely to be
down on the prior year. Action was taken to reduce overheads, resulting in a
reduction of underlying administration costs of almost GBP2.0m year on year.
This represents a reduction of 25%. Operational efficiency was also a key focus
during the year and underlying gross margins were maintained during the period
despite the reduction in sales activity. This was partly attributable to the
decision to create a hybrid onshore/offshore data capture operation which
delivered value to both clients and the Interact business through reduced costs
of operation.
Earnings per share was (0.79p) (2008: (3.85p)). Adjusted EPS was 0.10p.
The Group had net cash inflow of GBP0.44m (2008: outflow of GBP0.16m) during the
period after debt repayments of GBP0.47m. This includes capital expenditure for
the period of GBP0.03m and repayments under finance leases of GBP0.24m. Net debt
at the balance sheet date was GBP1.58m, a reduction from 2008 of GBP0.88m.
Borrowings from the invoice finance facility also reduced during the period by
GBP0.3m.
Cash at the end of the period was GBP0.47m (2008: GBP0.04m).
On 18 May 2010 the company sold its Dataforce Interact business for a
consideration of GBP10.19m. After adjustment for differences on net current
assets at completion, initial consideration of GBP6.31m was paid in cash. The
remaining consideration is payable on the anniversary of completion over the
next 2 years, with GBP1.89m payable on 18 May 2011 and GBP1.06m payable on 18
May 2012. After the deduction of deal costs, the profit on sale of Dataforce
Interact was GBP1.83m. On completion of the transaction all borrowings with HBoS
were settled leaving the group in a significantly stronger financial position,
and well placed to develop the data driven digital customer engagement strategy.
Outlook
The business has changed shape completely as a result of the post balance sheet
disposal of the Dataforce Interact subsidiary and the acquisition of the Moving
Service Limited which combined with the cash resources within the Group provides
a platform from which to invest and grow.
As a Group we are now focused entirely around a customer intelligence product
suite encompassing data, database developments and hosting, E-commerce and
digital services.
Our performance is directly related to the speed of recovery in the economy
aligned to our ability to market our products within this growing segment of the
marketing services market place.
Chief Executive
30 June 2010
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Group Income Statement |
+----------------------------------------------------------------------------------------------------------------------------+
| For the year ended 31 December 2009 |
+----------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | Year | | Year |
| | | | | | to | | to |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | 31.12.2009 | | 31.12.2008 |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | GBP | | GBP |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Continuing operations | | | | | |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| Revenue | | | | 11,717,210 | | 16,199,603 |
+--------------------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Cost of sales | | | | (6,125,331) | | (8,167,211) |
+--------------------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Gross Profit | | | | 5,591,879 | | 8,032,392 |
+--------------------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Administrative expenses | | | (5,779,128) | | (8,751,519) |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| Operating Loss pre-exceptional | | | (187,249) | | (719,127) |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Exceptional item - goodwill impairment | | | - | | (823,331) |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| Operating Loss post-exceptional | | | (187,249) | | (1,542,458) |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| Finance Income | | | 1 | | 3,562 |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| Finance Costs | | | (202,977) | | (359,357) |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Loss before Taxation | | | (390,225) | | (1,898,253) |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Taxation | | | | (40,501) | | 39,622 |
+--------------------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Loss for the year from continuing operations | | | | |
+ +----------+-------------+--------------------------+-------------+
| | | (430,726) | | (1,858,631) |
+----------------------------------------------------------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Attributable to: | | | | | |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| Equity holders of the parent | | | (430,726) | | (1,858,631) |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Earnings per share from continuing and total | | | | | |
| operations: | | | | | |
+-----------------------------------------------+----------+----------+-------------+--------------------------+-------------+
| Basic | | | | (0.79 | | (3.85 |
| | | | | p) | | p) |
+--------------------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| Diluted | | | | (0.79 | | (3.85 |
| | | | | p) | | p) |
+--------------------+--------------------------+----------+----------+-------------+--------------------------+-------------+
| | | | | | | | |
+----------+---------+--------------------------+----------+----------+-------------+--------------------------+-------------+
+--------+---------+--------------------------+----------+----------+------------+----------+--------------+
| Group Statement of Comprehensive Income |
+----------------------------------------------------------------------------------------------------------+
| For the year ended 31 December 2009 |
+----------------------------------------------------------------------------------------------------------+
| | | | | | | | |
+--------+---------+--------------------------+----------+----------+------------+----------+--------------+
| | | | | | | | |
+--------+---------+--------------------------+----------+----------+------------+----------+--------------+
| | | | | | Year | | Year |
| | | | | | to | | to |
+--------+---------+--------------------------+----------+----------+------------+----------+--------------+
| | | | | |31.12.2009 | | 31.12.2008 |
+--------+---------+--------------------------+----------+----------+------------+----------+--------------+
| | | | | | | | |
+--------+---------+--------------------------+----------+----------+------------+----------+--------------+
| | | | | | GBP | | GBP |
+--------+---------+--------------------------+----------+----------+------------+----------+--------------+
| Loss for the year from continuing | | | (430,726) | | (1,858,631) |
| operations | | | | | |
+---------------------------------------------+----------+----------+------------+----------+--------------+
| Other comprehensive income | | | - | | - |
+---------------------------------------------+----------+----------+------------+----------+--------------+
| Total comprehensive loss for the year | | | (430,726) | | (1,858,631) |
+---------------------------------------------+----------+----------+------------+----------+--------------+
| | | | | | | |
+------------------+--------------------------+----------+----------+------------+----------+--------------+
| Attributable to: | | | | | | |
+------------------+--------------------------+----------+----------+------------+----------+--------------+
| Equity holders of the parent | | | (430,726) | | (1,858,631) |
+--------+---------+--------------------------+----------+----------+------------+----------+--------------+
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Group Statement of Financial Position |
+-------------------------------------------------------------------------------------------------------+
| At 31 December 2009 |
+-------------------------------------------------------------------------------------------------------+
| | | | | | | | | | |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | | | |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | As at | | As at |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | 31.12.2009 | | 31.12.2008 |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | GBP | | GBP |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Assets | | | | | | | | |
+---------------------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Non-current assets | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Property, plant and | | | | | 600,080 | | 1,199,795 |
| equipment | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Software development costs | | | | | - | | 172,993 |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Goodwill | | | | | | 10,730,273 | | 10,730,273 |
+---------------------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Deferred Tax | | | | | | 129,017 | | 87,304 |
+---------------------+-------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | 11,459,370 | | 12,190,365 |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Current assets | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Trade and other receivables | | | | | 1,892,936 | | 3,307,885 |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Cash and cash equivalents | | | | | 474,599 | | 38,727 |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Total current assets | | | | | 2,367,535 | | 3,346,612 |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | | | |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Total assets | | | | | | 13,826,905 | | 15,536,977 |
+---------------------+-------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | | | |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Equity & liabilities | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Current liabilities | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Trade and other payables | | | | | 4,212,397 | | 4,918,274 |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Obligations under finance | | | | | 165,415 | | 244,150 |
| leases | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Current tax liabilities | | | | | 43,180 | | - |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Interest bearing loans, | | | | | 433,332 | | 433,332 |
| overdrafts and bank loans | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Total current liabilities | | | | | 4,854,324 | | 5,595,756 |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | | | |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Non-current liabilities | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Bank loans | | | | | | 1,213,407 | | 1,681,299 |
+---------------------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Obligations under finance | | | | | 240,622 | | 406,102 |
| leases | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Total non-current | | | | | 1,454,029 | | 2,087,401 |
| liabilities | | | | | | | |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | | | |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Total liabilities | | | | | 6,308,353 | | 7,683,157 |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | | | |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Equity | | | | | | | | |
+---------------------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Share capital | | | | | | 4,833,860 | | 4,827,060 |
+---------------------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Share premium account | | | | | 3,979,364 | | 3,901,164 |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Share options reserve | | | | | 79,089 | | 68,631 |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Retained earnings | | | | | (1,373,761) | | (943,035) |
+-----------------------------+----------+----------+----------+----------+-------------+-+-------------+
| Total equity | | | | | | 7,518,552 | | 7,853,820 |
+---------------------+-------+----------+----------+----------+----------+-------------+-+-------------+
| | | | | | | | | | |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
| Total equity & liabilities | | | | | 13,826,905 | | 15,536,977 |
+----------+----------+-------+----------+----------+----------+----------+-------------+-+-------------+
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Group Statement of Cash Flows |
+--------------------------------------------------------------------------------------------------------------------------------------------------------+
| For the year ended 31 December 2009 |
+--------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | |
+----------+--------+-----------------+----------+----------+-------------------------------------------+----------+-------------------------------------+
| | | | | | As at 31.12.2009 | | As at 31.12.2008 |
+----------+--------+-----------------+----------+----------+-------------------------------------------+----------+-------------------------------------+
| | | | | | GBP | | GBP | | GBP | | GBP |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Cash flow from operating activities | | | | | | | | |
+------------------------------------------------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Loss for the year | | | | (430,726) | | | |(1,858,631) |
+------------------------------------------------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Adjustments for: | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Finance income | | | (1) | | | | (3,562) | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Finance costs | | | 202,977 | | | | 359,357 | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Taxation | | | | 40,501 | | | | (39,622) | | |
+-------------------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Depreciation of property, plant and | | | 624,753 | | | | 586,856 | | |
| equipment | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Amortisation of Software | | | 172,993 | | | | 228,091 | | |
| Development Costs | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Impairment of goodwill | | | - | | | | 823,331 | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Share-based payment expense | | | 10,458 | | | | 25,200 | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Gain on disposal of property, plant | | | (950) | | | | (140,000) | | |
| and equipment | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | 1,050,731 | | | | 1,839,651 |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Operating cash flows before movements in | | | | | | | | |
| working capital | | | | | | | | |
+ +----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | (620,005) | | | | (18,980) |
+------------------------------------------------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Decrease in receivables | | | 1,414,949 | | | | 1,658,408 | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Decrease in payables | | | (654,441) | | | | (307,658) | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | 760,508 | | | | 1,350,750 |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Cash inflow from operations | | | | | 1,380,513 | | | | 1,331,770 |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Taxation paid | | | | | (5,470) | | | | - |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Cash generated from operating | | | | | 1,375,043 | | | | 1,331,770 |
| activities | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Investing activities | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Interest received | | | 1 | | | | 3,562 | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Proceeds on disposal of property, | | | 950 | | | | 340,000 | | |
| plant and equipment | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Purchases of property, plant and | | | (25,038) | | | | (288,169) | | |
| equipment | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Payments for intangible assets | | | - | | | | (222,428) | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Net cash used in investing | | | | | (24,087) | | | | (167,035) |
| activities | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Financing activities | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Interest paid | | | (202,977) | | | | (359,357) | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Repayments of borrowings | | | (467,892) | | | | (771,641) | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Repayments of obligations under | | | (224,215) | | | | (193,729) | | |
| finance leases | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Net cash used in financing | | | | | (915,084) | | | | (1,324,727) |
| activities | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Net increase/(decrease) in cash and | | | | | 435,872 | | | | (159,992) |
| cash equivalents | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| | | | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Cash and cash equivalents at the | | | | | 38,727 | | | | 198,719 |
| beginning of the year | | | | | | | | | |
+-------------------------------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
| Cash and cash equivalents at the | | | | | 474,599 | | | | 38,727 |
| end of the year | | | | | | | | | |
+----------+--------+-----------------+----------+----------+------------+-----------------+------------+----------+------------+----------+-------------+
+----------+--+------------+--+--------+---+----------+-----+---+----------+-----+------+----------+----------+--------+----------+-------------------+
| Statement Of Changes In Equity |
+-----------------------------------------------------------------------------------------------------------------------------------------------------+
| For the year ended 31 December 2009 |
+-----------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | |
+----------+--+------------+--+--------+--------------+-----+--------------+-----+-----------------+----------+-------------------+-------------------+
| | Group | | | | | | | | | | |
+----------+---------------+--+--------+--------------+-----+--------------+-----+-----------------+----------+-------------------+-------------------+
| | | | | Share Capital | Share options | Share premium | Retained earnings/ | Total |
| | | | | | reserve | account | (losses) | |
+----------+--+------------+--+-----------------------+--------------------+-----------------------+------------------------------+-------------------+
| | | | | GBP | | GBP | | GBP | | GBP | | GBP |
+----------+--+------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | | | | | | | | | | | | |
+----------+--+------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | At 1 January | | 4,827,060 | | 43,431 | | 3,901,164 | | 915,596 | | 9,687,251 |
| | 2008 | | | | | | | | | | |
+----------+---------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | Total | | - | | - | | - | | (1,858,631) | | (1,858,631) |
| | comprehensive | | | | | | | | | | |
| | loss for the | | | | | | | | | | |
| | period | | | | | | | | | | |
+----------+---------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | Share options | | - | | 25,200 | | - | | - | | 25,200 |
+----------+---------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | At 31 | | 4,827,060 | | 68,631 | | 3,901,164 | | (943,035) | | 7,853,820 |
| | December 2008 | | | | | | | | | | |
+----------+---------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | Total | | - | | - | | - | | (430,726) | | (430,726) |
| | comprehensive | | | | | | | | | | |
| | loss for the | | | | | | | | | | |
| | period | | | | | | | | | | |
+----------+---------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | Issue of new | | 6,800 | | - | | 78,200 | | - | | 85,000 |
| | share capital | | | | | | | | | | |
+----------+---------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | Share options | | - | | 10,458 | | - | | - | | 10,458 |
+----------+---------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | At 31 | | 4,833,860 | | 79,089 | | 3,979,364 | | (1,373,761) | | 7,518,552 |
| | December 2009 | | | | | | | | | | |
+----------+---------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | | | | | | | | | | | | |
+----------+--+------------+--+------------+----------+---------+----------+------------+----------+-------------------+----------+-------------------+
| | | | | | | | | | | | | | | | | |
+----------+--+------------+--+--------+---+----------+-----+---+----------+-----+------+----------+----------+--------+----------+-------------------+
Earnings per Share
The calculation of the basic and diluted earnings per share from continuing and
total operations attributable to the ordinary equity holders of the company is
based on the following data:
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | 2009 | | 2008 |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | GBP | | GBP |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| Earnings | | | | | | | | | | |
+---------------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| Earnings for the purposes of basic earnings per share | | | | (430,726) | | (1,858,631) |
+--------------------------------------------------------------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | | | |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| Effect of dilutive potential ordinary shares: | | | | - | | - |
+--------------------------------------------------------------+----------+----+----+-------------------+----------+-----------------+
| Earnings for the purposes of diluted earnings per share | | | | (430,726) | | (1,858,631) |
+--------------------------------------------------------------+----------+----+----+-------------------+----------+-----------------+
| Goodwill impairment of Ominor Limited | | | | - | | 823,331 |
+--------------------------------------------------------------+----------+----+----+-------------------+----------+-----------------+
| Software development, obsolete assets and consultancy costs | | | | | | |
| write off, bad debt provision & excess property costs | | | | 486,008 | | 526,086 |
+--------------------------------------------------------------+----------+----+----+-------------------+----------+-----------------+
| Earnings for the purposes of adjusted earnings per share | | | | | | |
| (basic & diluted) | | | | 55,282 | | (509,214) |
+--------------------------------------------------------------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | | | |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | | | |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | 2009 | | 2008 |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | No. | | No. |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| Number of shares | | | | | | | | | | |
+---------------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| Weighted average | | | | | | | | 54,213,614 | | 48,270,600 |
| number of ordinary | | | | | | | | | | |
| shares | | | | | | | | | | |
+---------------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | | | |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| Weighted average number of ordinary shares for the purposes | | | | 54,213,614 | | 48,270,600 |
| of diluted EPS | | | | | | |
+--------------------------------------------------------------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | | | |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| Basic Earnings per Share (in pence) | | | | (0.79) | | (3.85) |
+--------------------------------------------------------------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | | | |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| Diluted Earnings per Share (in pence) | | | | (0.79) | | (3.85) |
+--------------------------------------------------------------+----------+----+----+-------------------+----------+-----------------+
| | | | | | | | | | | | |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
| Adjusted Earnings per Share (in pence) | | | | | | 0.10 | | (1.05) |
+----+----------------+----------+-------+----------+----------+----------+----+----+-------------------+----------+-----------------+
Share options and warrants do not have a dilutive effect because the exercise
price was above the average market price during the period.
Basis of preparation
The annual 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 2006
applicable to companies reporting under IFRS. They have been prepared on a
consistent basis with the accounting policies set out in this Annual Report and
Accounts for the year ended 31 December 2009. 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.
The consolidated financial information has been prepared under the historical
cost convention.
Going Concern
At the balance sheet date the Group had net current liabilities of GBP2.49m
(2008: GBP2.25m). On the completion of the sale of the entire share capital of
DF Property Portfolio Limited (formerly Dataforce Group Limited) and its wholly
owned subsidiary Dataforce Interact Limited on 18 May 2010 for an initial
consideration (after adjustments for net current assets) of GBP6.31m the Group
repaid all its borrowings from the Bank of Scotland leaving the Group in a
significantly stronger financial position. Based on the forecasts of the Group,
following the disposal, plus deferred consideration of GBP2.95m to be received
over the next two years, the Directors consider it appropriate to adopt the
going concern basis in preparing the Annual Accounts.
Annual Report
Twenty plc's 2009 Annual Report and Accounts are available on the company's
website.
The website address to access the Report and Accounts is
http://www.twentyplc.com/ and they are located at the 'Investor Relations'
section under the heading 'Company Reports'. The Report and Accounts may be
accessed on the website by selecting the item noted "2009 Annual Report".
This information is provided by RNS
The company news service from the London Stock Exchange
END
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