26th Nov 2009 11:00
26 November 2009
cScape Group plc
Preliminary results for the year ended 30 June 2009
cScape Group plc ('cScape Group' or 'the Group'), the digital communications business, today announces its preliminary unaudited results for the year ended 30 June 2009.
Enquiries, please contact:
Geoffrey Griggs
cScape Group plc
Tel: 020 7689 8800
Azhic Basirov / Siobhan Sergeant
Smith & Williamson Corporate Finance Limited
Tel: 020 7131 4000
CHAIRMAN'S STATEMENT
Introduction
We consider that the Group has made good progress in the year to 30 June 2009.
Financial and operational review
Group turnover was £6.7m (2008: £7.4m).
The operating result of the Group can be analysed as set out below (£k):
|
2009 |
2008 |
|||
|
IT Subgroup |
||||
|
H1Operating |
(138) |
(211) |
||
|
H2 Operating |
166 |
(252) |
||
|
Publishing and digital communication services segment |
(132) |
36 |
||
|
Restructuring costs |
(172) |
- |
||
|
Goodwill impairment |
- |
(1,026) |
||
|
Profit before interest and tax |
(276) |
(1,453) |
||
The loss per share was 2.85p compared with 17.9p in 2008.
Although a loss was recorded for the year as a whole, this included significant restructuring costs and trading losses of the Publishing and digital communication services segment, the two main trading companies of which have now been disposed of as mentioned below. We have achieved a significant reduction in our overhead costs during the year and our trading performance in the ongoing IT businesses in the second half has been satisfactory, achieving an operating profit of £166k (2008: Loss of £252k).
The Group has been using the recession as a breathing space to reorganise and refocus the business in preparation for taking full advantage of the upturn as and when it occurs. Whilst we saw significant shrinkage of new business opportunities, our work with our core of long established clients continued to hold up.
The good quality management of cScape (whose name we chose for the Group) has enabled it to trade strongly, delivering growth from its existing high quality clients.
Blue Sky Hosting Limited also had a good year and withstood recessionary pressures well. The company has begun to take fuller advantage of the synergies available within the Group, particularly around the relationship with Microsoft.
The operations of Fernhart New Media have been integrated more closely into those of cScape Strategic Internet Services Limited during the year.
As part of the overall rationalisation of the Group the decision was taken to dispose of ITM Grpahics Limited and ITM Publishing Services Limited to management after the year end for a consideration of up to £150k.
Outlook
We consider that the Group is now well positioned to take advantage of the expected economic upturn.
Keith Young 26 November 2009
Chairman
UNAUDITED GROUP PROFIT & LOSS ACCOUNT
Year ended 30 June 2009
|
Note |
2009 £000 |
2008 £000 |
||
|
Total |
Total |
|||
|
TURNOVER |
6,689 |
7,433 |
||
|
Cost of sales |
(1,654) |
(2,114) |
||
|
GROSS PROFIT |
5,035 |
5,319 |
||
|
Administrative expenses before exceptional item |
(5,311) |
(5,746) |
||
|
Exceptional item |
- |
(1,026) |
||
|
Administrative expenses |
(5,311) |
(6,772) |
||
|
OPERATING LOSS |
(276) |
(1,453) |
||
|
Non-operating exceptional items |
||||
|
Discontinuance of business and settlement of pension liabilities in respect thereof |
- |
75 |
||
|
Interest payable and similar charges |
(45) |
(104) |
||
|
Interest receivable and similar income |
2 |
24 |
||
|
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION |
(319) |
(1,458) |
||
|
Tax on loss on ordinary activities |
- |
- |
||
|
LOSS FOR THE FINANCIAL YEAR |
|
(319) |
(1,458) |
|
|
BASIC LOSS PER SHARE (PENCE) |
3 |
(2.85)p |
(17.90)p |
|
|
DILUTED LOSS PER SHARE (PENCE) |
3 |
(2.85)p |
(17.90)p |
|
All turnover and results arose from continuing operations apart from the non-operating exceptional items which relate to the closure of discontinued operations.
No separate statement of Total Recognised Gains and Losses has been presented as all such gains and losses have been dealt with in the profit and loss account.
UNAUDITED GROUP BALANCE SHEET
As at 30 June 2009
|
2009 |
2008 |
||||
|
Note |
£000 |
£000 |
£000 |
£000 |
|
|
FIXED ASSETS |
|||||
|
Intangible assets |
1,252 |
1,252 |
|||
|
Tangible assets |
516 |
631 |
|||
|
1,768 |
1,883 |
||||
|
CURRENT ASSETS |
|||||
|
Stocks |
73 |
77 |
|||
|
Debtors |
1,248 |
1,498 |
|||
|
Cash at bank |
633 |
409 |
|||
|
1,954 |
1,984 |
||||
|
CREDITORS: amounts falling due within one year |
(2,943) |
(2,615) |
|||
|
NET CURRENT LIABILITIES |
(989) |
(631) |
|||
|
TOTAL ASSETS LESS CURRENT LIABILITIES |
779 |
1,252 |
|||
|
CREDITORS: amounts falling due after more than one year |
(330) |
(494) |
|||
|
NET ASSETS |
449 |
758 |
|||
|
CAPITAL AND RESERVES |
|||||
|
Called up share capital |
1,131 |
1,106 |
|||
|
Share premium |
499 |
514 |
|||
|
Capital redemption reserve |
6 |
6 |
|||
|
Profit and loss account |
(1,187) |
(868) |
|||
|
EQUITY SHAREHOLDERS' FUNDS |
449 |
758 |
|||
UNAUDITED GROUP CASHFLOW STATEMENT
Year ended 30 June 2009
|
Note |
2009 £000 |
2008 £000 |
||
|
Net cash inflow/(outflow) from operating activities |
4 |
379 |
(13) |
|
|
Returns on investments and servicing of finance |
(43) |
(80) |
||
|
Capital expenditure |
(117) |
(341) |
||
|
Acquisitions |
- |
- |
||
|
Net cash inflow/(outflow) before financing |
219 |
(434) |
||
|
Financing |
(144) |
577 |
||
|
Increase/(decrease) in cash in the year |
75 |
143 |
||
|
Reconciliation of net cash flow to movement in net funds |
||||
|
Increase/(decrease) in cash in the year |
5 |
75 |
143 |
|
|
Decrease/(increase) in debt and lease financing |
154 |
(112) |
||
|
Movement in net funds in the year |
229 |
31 |
||
|
Net (debt)/funds at start of year |
(247) |
(278) |
||
|
Net debt at end of year |
5 |
(18) |
(247) |
|
Notes:
1. FINANCIAL INFORMATION
The unaudited financial information set out above does not constitute statutory accounts within the meaning of sections 434 and 435 of the Companies Act 2006. Statutory accounts for the year ended 30 June 2009 will be finalised based on the information in this preliminary announcement and will be delivered to the Registrar of Companies in due course. The accounts for the year ended 30 June 2008 which received an unqualified auditor's report, have been filed with the Registrar of Companies.
2. SEGMENTAL INFORMATION
The Group operates in the UK and the whole of its turnover is in the UK market.
|
Turnover |
Operating Profit/(Loss) |
|||
|
2009 £000 |
2008 £000 |
2009 £000 |
2008 £000 |
|
|
Internet services |
3,920 |
4,148 |
239 |
40 |
|
Publishing and digital communication services |
1,552 |
1,901 |
(132) |
36 |
|
Specialist hosting |
831 |
842 |
142 |
190 |
|
Media and interactive technology |
386 |
542 |
(9) |
(87) |
|
Central and other costs/net assets |
- |
- |
(516) |
(606) |
|
Impairment of goodwill |
- |
- |
- |
(1,026) |
|
______ |
______ |
______ |
______ |
|
|
Group |
6,689 |
7,433 |
(276) |
(1,453) |
|
Profit/(Loss) before tax |
Net assets/(liabilities) |
|||
|
2009 £000 |
2008 £000 |
2009 £000 |
2008 £000 |
|
|
Internet services |
241 |
47 |
1,607 |
1,152 |
|
Publishing and digital communication services |
(151) |
11 |
(259) |
118 |
|
Specialist hosting |
141 |
186 |
970 |
701 |
|
Media and interactive technology |
(10) |
(90) |
(154) |
436 |
|
Central and other costs/net assets |
(540) |
(661) |
(1,715) |
(623) |
|
Exceptional items |
- |
75 |
- |
- |
|
Impairment of goodwill |
- |
(1,026) |
- |
(1,026) |
|
______ |
______ |
______ |
______ |
|
|
Group |
(319) |
(1,458) |
449 |
758 |
Included in Central and other costs is an amount of £172k relating to restructuring costs.
3. LOSS PER ORDINARY SHARE
Basic loss per share is calculated by dividing the loss attributable to ordinary shareholders by the weighted average number of ordinary shares during the year.
The diluted loss per share is the same as the actual loss per share. Due to the loss incurred in the year, there is no dilution effect from the issued share options.
|
2009 |
2008 |
||
|
Basic earnings attributable to ordinary shareholders: £000 |
(319) |
(1,458) |
|
|
Weighted average number of ordinary shares |
11,190,376 |
8,144,902 |
|
|
Loss per share: |
(2.85)p |
(17.90)p |
|
4. RECONCILIATION OF OPERATING LOSS TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
|
2009 £000 |
2008 £000 |
||
|
Operating loss |
(276) |
(1,453) |
|
|
Impairment provision |
- |
1,026 |
|
|
Depreciation |
232 |
218 |
|
|
Profit / (Loss) on disposal of tangible fixed assets |
- |
(1) |
|
|
Other provision |
(100) |
400 |
|
|
(Increase)/decrease in stocks |
4 |
(2) |
|
|
Increase in debtors |
252 |
10 |
|
|
Increase/(decrease) in creditors |
267 |
(211) |
|
|
Net cash inflow/(outflow) from operating activities |
379 |
(13) |
|
5. ANALYSIS OF CHANGES IN NET DEBT
|
At 1 July 2008 |
Cash flow |
At 30 June 2009 |
|
|
Net cash: |
£000 |
£000 |
£000 |
|
Cash at bank |
409 |
224 |
633 |
|
Bank overdrafts |
(200) |
(149) |
(349) |
|
209 |
75 |
284 |
|
|
Debt: |
|||
|
Bank loans (including invoice discounting) |
(226) |
41 |
(185) |
|
Hire purchase obligations |
(230) |
113 |
(117) |
|
Total |
(247) |
229 |
(18) |
6. ACCOUNTING FOR GOODWILL
The board has assessed each subsidiary with reference to its durability, ability to sustain future long term profitability and assessed ability to maintain market position. Based on this assessment the board is of the opinion that the goodwill elements have indefinite economic lives. The board has carried out impairment reviews on these goodwill elements and has concluded that there is no provision required for the current year (2008: £1,026,000)
7. POST BALANCE SHEET EVENT
On 23 November 2009, the Company disposed of its wholly owned subsidiaries, ITM Graphics Ltd and ITM Publishing Services Ltd for a maximum cash consideration of £150,000.
For the year ended 30 June 2009, ITM Graphics Limited made a profit before tax of £5,802 on turnover of £1,910,708. As at 30 June 2009, ITM Graphics Limited had net assets of £145,522. For the year ended 30 June 2009, ITM Publishing Services Limited made a loss before tax of £61,032 on turnover of £1,150,511. As at 30 June 2009, ITM Publishing Services Limited had net liabilities of £61,031.
8. COPIES OF PRELIMINARY STATEMENT
Copies of this announcement are available on the Company's website www.cscapegroup.com or from the company secretary at 4 Pear Tree Court, Clerkenwell, London, EC1R 0DS. Copies of the Annual Report and Accounts of the Company for the year ended 30 June 2009 will be sent to shareholders in due course.
Related Shares:
Chesterfield Sp