25th May 2005 07:01
First Derivatives PLC25 May 2005 First Derivatives plc (FDP)Preliminary results for the year ended 28th February 2005 25th May 2005 The principal activities of FDP are the provision of a range of support servicesto the investment banking market and the derivatives technology industry and theprovision of its own range of e-business applications. Financial highlights • Turnover £3.79 million (2004: £2.68 million) +41.4 %• Profit before tax and amortisation £991,000 (2004: £757,000) + 30.9%• Earnings per share 4.6p (2004: 3.3p) + 39.4%• Proposed final dividend of 1.46p per share (2004: 1.1p)• Cash balances as at 28th February 2005 of £788,000 Business highlights • Upturn in activity in the second half of the year, with the e-commerce division moving into profitability• Major contract signed with EDS, to work with a major London Bank• Since the year end, signed a new partnership with KX on enhanced terms• Signed 10 new KX customers since the interims with a total value in excess of £1 million David Anderson, Chairman of FDP, commented: "The growth experienced in the first half of the year, has continued at pace inthe second half of the year. The agreement signed with KX has enhanced oursales pipeline, along with the high profile deal signed with EDS. With thee-commerce division moving into profitability since the year end, we are wellpositioned for the new financial year." For further information please contact: First Derivatives Corporate Synergy Parkgreen CommunicationsBrian Conlon Luke Ahern Justine Howarth/Victoria ThomasManaging Director T: 07753 963 840 T: 020 7493 3713T: 02830 252242 www.firstderivatives.com First Derivatives plcPreliminary results for the year ended 28th February 2005 Chairman's statement 2004/2005 has once again been a successful year for the Company with the growthshown in the first six months of the year continuing in the second half of theyear. Earnings before tax, depreciation and amortisation were £1,060,000compared with £787,000 in the previous year, an increase of 35%. This is thefirst year that EBITDA has exceeded £1.0 million. Pre-tax profits for the yearwere £811,000 compared with £577,000 in the previous year, an increase of over40%. Earnings per share increased by 39% from 3.3p to 4.6p. In the light of thecontinued growth in the profitability of the Company and the strong cash flowthe Board is recommending a dividend for the year of 1.46p. This dividend willbe covered 3.2 times by earnings. The Company has to date only paid a finaldividend but your Board intends to review its dividend policy at the time theresults for the six months figures for the period ending 31st August 2005 areannounced. In my interim statement I referred to the upturn in business in our CapitalMarkets activity. This has continued in the second half of the year and a majorcontract was signed earlier this year with EDS for work on behalf of a majorbank in London. The impact of this contract on profits will not be felt untilthe second half of the current financial year. The sales and support for Kx database technology is a significant part of ourbusiness. In the past six months staffing levels in the New York office havebeen increased to cater for the enhanced level of activity and since thefinancial year end an experienced executive has been appointed to head up theNorth American Business Development Team. This appointment is expected togenerate Capital Markets business in addition to Kx business. A new partnershipwith Kx was signed in April on enhanced terms and the sale of Kx products iscontinuing at a very satisfactory level and there is a healthy pipeline ofprospective sales. The Company continues to benefit from its relationship withKx and in the past six months the Company has signed consultancy agreements withmore than 10 Kx customers with a total value in excess of £1 million (a numberof which are on a rolling basis). During the year the e-Business activity has continued at a low level andoverheads in this area have been reduced to a minimum. There has been a recentupturn in e-Business activity and I am pleased to report that in the lastquarter we moved into a breakeven position ahead of plan. During the course of the year the Company purchased 2 further residentialproperties in London to provide accommodation for staff supporting the increasedlevel of activity. Since the year end a residential property has also beenacquired in New York for the same purpose. Shareholders funds now stand at£2.116m compared with £1.698 million a year ago. Partnership agreement discussions are continuing with a number of high profilesoftware companies. The increased level of activity experienced in the secondhalf of the financial year has continued in the early part of the currentfinancial year. Again this increase has been in all areas of the Company'sactivities and the Board looks forward to a satisfactory outcome for the year. David Anderson 25 May 2005Chairman Managing Director's statement The general climate in the Technology, Media and Telecommunications market hascontinued to improve. The most striking theme in the Deloitte 2005 Fast 500 CEOSurvey Results was the increased confidence in future growth prospects. FDP operates primarily in the capital markets sector and there is littleevidence of any contraction in technology spend in major financialinstitutions. Banks continue to focus on getting value for money from suppliersand are placing severe pressure on charge out rates and increasingly looking tooutsource non-core functions. FDP have secured a small number of lucrativenearshore support contracts but the challenge from low cost centres such asIndia remains. Review of Activities First Derivatives operates loosely as 4 profit centres. Personnel can easilytransfer from one profit centre to another. Capital Markets and SalesPartnerships contributes the vast majority of our current turnover andprofitability but our investment in R&D should start to filter through to thebottom line in the current financial year. Capital Markets - FDP provides highly skilled resources to the capital marketsproviding consulting, support and development services. We have ongoingcontracts with 5 of the largest banks in Europe and have 3 nearshore supportcontracts in place. These nearshore contracts involve providing remote supportservices from our offices in Newry. The biggest of these contracts for theprovision of 12 resources with EDS was announced in February. This and otherrecurring revenues accounts for 62% of our income. Sales Partnerships - FDP continues to provide sales and marketing support forall industry sectors (excluding insurance) of Kx Systems worldwide. The contractwas renegotiated with more favourable commercial terms, effective as of 1January 2005. Their products continue to be widely used by some of the world'slargest financial institutions including J P Morgan, Merrill Lynch, DeutscheBank and Dresdner. We have provided consulting and support services to 15 ofthese organisations in the past year at various locations including London, NewYork and Tokyo. Most of these contracts are recurring in nature. We willcontinue to build our portfolio of alliances with other non-competing softwarevendors. Product Development - this group is in the process of developing a number ofproducts, primarily for the use of customers of Kx Systems. The team is at anadvanced stage of prototyping new products in the capital markets sector andmore are in the development roadmap. Development has also commenced on a numberof products which will be marketed to the telecoms sector and which willcomplement our e-business offering. No significant revenue will accrue fromthis division until the next financial year. e-business - this division gained some sales traction in the second half of thefinancial year and the partnership with BT is beginning to bear fruit. Pilotshave started in a number of regions in England including Northumberland,Yorkshire and Manchester. Contracts have been signed with local authorities inDublin, Cork, Kerry and Newry and Mourne for the use of our award winninge-procurement modules over the coming years. This division has now reachedbreakeven point and should contribute to profits in the current financial year. Managing Director's statement Personnel The company now employs 46 people and has staff based in London, New York andStockholm. We will continue to source staff in Ireland due to the favourablecost differential vis-a-vis major financial centres. Most of our employees areparticipating in option schemes which we see as a key driver in retaining staff.Our staff turnover is relatively low which means that we are seeing increasingwage inflation as the average experience increases. Once again I would like to pay tribute to all FDP employees who almost withoutexception are hard working, talented, flexible and dedicated. Our customerretention rates are evidence of this. Property Portfolio As the number of staff working on-site in the major financial centres increaseswe will continue to buy property in lieu of paying for hotels and rentedaccommodation. As at the balance sheet date we had purchased 4 properties inLondon financed by cash and term loans and in the interim period have securedthe purchase of a further property in New York. Financial Review Our pre-tax profit (2005: £811,000; 2004: £577,000), EBITDA (2005: £1,126,000,2004: £810,000) and turnover (2005: £3,793,000; 2004: £2,679,000) weresignificantly up on last year. This was largely due to increased consultantutilisation and sales commission from partner agreements. Our balance sheet isstrong with a cash balance of £788,000 and equity shareholders' funds of£2,116,000. This and our confidence in our ability to generate cash goingforward enables us to declare a dividend of 1.46p per share. Outlook We are increasing headcount to meet demand from the current sales pipeline andto develop product. Our outlook for the year ahead is for trading to continuein line with previous trends and the further strengthening of our balance sheet.We now have a spread of activities with our recurring revenue streaminsulating us against general industry downturn and our interest in the sale ofvarious software products giving us the benefit of considerable potentialupside. Brian Conlon 25 May 2005Managing Director Profit and loss accountYear ended 28 February 2005 Year ended Year ended 28 February 29 February Note 2005 2004 £'000 £'000 Turnover - continuing operations 2 3,793 2,679 Cost of sales (2,411) (1,724) Gross profit 1,382 955 Administrative expenses (560) (497) Other income 55 142 Operating profit - continuing operations 877 600 Interest receivable 8 8 Interest payable and other similar charges 4 (74) (31) Profit on ordinary activities before taxation 3 811 577 Tax on profit on ordinary activities 5 (242) (165) Profit on ordinary activities after taxation 569 412 Retained profit brought forward 877 600 1,446 1,012 Dividends 8 (181) (135) Retained profit carried forward 1,265 877 Earnings per share - basic 9a 4.6p 3.3p - diluted 9a 4.5p 3.3pAdjusted earnings per share - basic 9b 6.6p 4.7p - diluted 9b 6.5p 4.6p The company has no recognised gains or losses other than those included aboveand therefore no separate statement of total recognised gains and losses hasbeen presented. There is no material difference between the company's resultsas reported and on a historical cost basis. Accordingly no note of historicalcost profits and losses has been prepared. The turnover and operating profitamounts as stated above are derived solely from continuing operations. Balance Sheet Year ended 28 February 2005 At 28 February At 29 February 2005 2004 Note £'000 £'000 £'000 £'000Fixed assetsIntangible assets 10 540 720Tangible assets 11 2,032 808Fixed asset investment 12 111 74 2,683 1,602Current assetsDebtors 13 1,046 606Cash at bank and in hand 788 848 1,834 1,454Creditors - amounts falling due within one year 14 (1,109) (828) Net current assets 725 626 Total assets less current liabilities 3,408 2,228 Creditors - amounts falling due after more than one year 15 (1,289) (523) Provisions for liabilities and charges 16 (3) (7) Net assets 2,116 1,698 Share capital and reservesCalled-up share capital 17 62 62Shares to be issued 18 9 7Share premium account 18 780 752Profit and loss account 18 1,265 877 Equity shareholders' funds 19 2,116 1,698 These financial statements were approved by the board of directors on 24 May2005. Brian ConlonDirector Cash flow statementYear ended 28 February 2005 Year ended Year ended 28 February 29 February Note 2005 2004 £'000 £'000Cash inflow from operating activities 25 617 1,065 Returns on investment and servicing of finance 26a (66) (23)Taxation 26b (160) (269)Capital expenditure 26c (1,318) (856) Cash inflow before financing (927) (83) Financing 26d 867 376 (Decrease)/increase in cash in the period (60) 293 Reconciliation of net cash flow to movement in net (debt)/fundsYear ended 28 February 2005 Year ended Year ended 28 February 29 February Note 2005 2004 £'000 £'000 (Decrease)/increase in cash in the period (60) 293Decrease in debt 93 37 Change in net debt resulting from cash flows 27 33 330New long term loan (932) (375) Movement in net debt in the period (899) (45)Net funds at start of the period 277 322 Net (debt)/funds at end of the period 27 (622) 277 Notes 1 Accounting policies The following accounting policies have been applied consistently in dealing withitems which are considered material in relation to the company's financialstatements. Basis of accounting The financial statements have been prepared under the historical cost accountingrules. Basis of preparing the financial statements The financial statements have been prepared on the going concern basis whichassumes that the company will continue in operational existence for theforeseeable future. Intangible fixed assets Intangible fixed assets comprise intellectual property rights over software andare capitalised where purchased on an arm's length basis. Such assets areamortised over their estimated useful lives, estimated to be 5 years. Tangible fixed assets Tangible fixed assets are stated at historical cost, less accumulateddepreciation. Depreciation is calculated to write off the original cost lessthe expected residual value of fixed assets over their anticipated useful livesat the following annual rates: Motor vehicles - 25% straight lineOffice furniture and equipment - 25% straight linePlant and equipment - 25-50% straight lineBuildings - 2% straight line Government grants Government grants are recognised in the profit and loss account so as to matchthem with the expenditure towards which they are intended to contribute. Fixed asset investments Fixed asset investments are stated at cost unless, in the opinion of theDirectors, there has been an impairment, in which case an appropriate adjustmentis made. For shares acquired on the exercise of an option previously granted tothe company, cost includes any in the money element of the option, as calculatedat the date the option was granted. Research and development All research and development expenditure is written off in the period in whichit is incurred. Pension plans The company operates "Personal Pension Plans" whereby the company agrees to pay,for eligible employees, a defined contribution into the employee's own personalpension scheme. The pension charge represents contributions payable by thecompany for the period. The company's liability is limited to the amount of thecontribution. The liability for meeting future pension payments rests solelywith the employee's personal pension scheme. Foreign currencies Transactions in foreign currencies are recorded at the rate ruling at the dateof the transactions or at a contracted rate. The resulting monetary assets andliabilities are translated at the balance sheet rate or the contracted rate andthe exchange differences are dealt with in the profit and loss account. 1 Accounting policies Taxation The charge for taxation is based on the profit for the year and takes intoaccount taxation deferred because of timing differences between the treatment ofcertain items for taxation and accounting purposes. Deferred tax is recognised,without discounting, in respect of all timing differences between the treatmentof certain items for taxation and accounting purposes which have arisen but notreversed by the balance sheet date, except as otherwise required by FRS 19. 2 Turnover Turnover excludes value added tax and represents the fair value of servicesdelivered to customers in the accounting period. Services are deemed to havebeen delivered to customers when, and to the extent that, the entity has met itsobligations under its service contracts. Credit for enterprise software licencerevenue is deferred and released over the period of the licence on a straightline basis. The directors are of the opinion that disclosure of the analysis of turnover andprofit by geographical market would be prejudicial to the interests of thecompany. 3 Profit on ordinary activities before taxation Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000Profit on ordinary activities before taxationhas been arrived at after charging: Depreciation 69 30Amortisation 180 180Auditors' remuneration - audit 10 10 - tax 7 10Hire of premises - rentals payable under operating lease 14 12 4 Interest payable and other similar charges Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 On bank loans 74 31 5 Tax on profit on ordinary activities Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 UK corporation tax for the period 246 170Adjustments relating to earlier years - (7) Total current tax charge 246 163 Deferred tax (see note 16) (4) 2 242 165 The basis by which taxation is calculated is stated in Note 1. The current tax charge for the period is higher (2004: lower) than the standardrate of corporation tax in the UK. The differences are explained below: Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000Current tax reconciliationProfit on ordinary activities before tax 811 577 Current tax at 30% (2004: 30%) 243 173 Effects of:Expenses not deductible for tax purposes 6 23Capital allowances for period in excess of depreciation 15 (3)Other timing differences - 1Small companies relief (18) (24)Adjustments to tax charge in respect of previous periods - (7) Total current tax charge 246 163 The directors are not aware of any issues that will significantly impact on thefuture tax charge. 6 Staff numbers and costs The average weekly number of persons (including the directors) employed by thecompany during the year is set out below. Year ended Year ended 28 February 29 February 2005 2004 Average No. Average No. Administration 1 2Technical 38 32 39 34Their total remuneration was: £'000 £'000 Wages and salaries 1,180 980Social security costs 132 98Other pension costs 70 45 1,382 1,123 7 Emoluments of directors The remuneration paid to the directors was: Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Aggregate emoluments (including benefits in kind) 140 107Company pension contributions 22 22 162 129 During the period there were 2 directors accruing benefits under a definedcontribution pension scheme (29 February 2004: 2). The aggregate emoluments and company pension contributions of the highest paiddirector amounted to £55,000 and £16,056 respectively during the year (2004:£55,000 and £5,994 respectively). 8 Dividends Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Final proposed 1.46p (2004: 1.1p) per share (181) (135) 9 (a) Earnings per ordinary share Basic The calculation of basic earnings per share is based on the profit on ordinaryactivities after taxation and before deduction of dividend appropriations inrespect of equity shares, namely £569,000 (2004: £412,000). The weightedaverage number of ordinary shares for the year ended 28 February 2005 andranking for dividend was 12,360,620 (2004: 12,302,807). Year ended Year ended 28 February 29 February 2005 2004 Pence per share Pence per share Basic earnings per share 4.6 3.3 Diluted The calculation of diluted earnings per share is based on the profit on ordinaryactivities after taxation and before deduction of dividend appropriations inrespect of equity shares, namely £569,000 (2004: £412,000). The weightedaverage number of ordinary shares for the year ended 28 February 2005 andranking for dividend was 12,560,149 (2004: 12,484,555). Year ended Year ended 28 February 29 February 2005 2004 Pence per share Pence per share Diluted earnings per share 4.5 3.3 9 (b) Adjusted earnings per ordinary share Adjusted earnings per share are based on profit before taxation of £811,000(2004: £577,000). The number of shares used in this calculation is consistentwith note 9(a) above. Year ended Year ended 28 February 29 February 2005 2004 Pence per share Pence per share Basic adjusted earnings per ordinary share 6.6 4.6Diluted adjusted earnings per ordinary share 6.5 4.6 9 (b) Adjusted earnings per ordinary share Reconciliation from earnings per ordinary share to adjusted earnings perordinary share. Year ended Year ended 28 February 29 February 2005 2004 Pence per share Pence per share Basic earnings per share 4.6 3.3Impact of taxation charge 2.0 1.3 Adjusted basic earnings per share 6.6 4.6 Diluted earnings per share 4.5 3.3Impact of taxation charge 2.0 1.3 Adjusted diluted earnings per share 6.5 4.6 Adjusted earnings per share has been presented to facilitate pre-tax comparisonreturns on comparable investments. 10 Intangible fixed assets 2005 £'000 At 1 March 2004 720Additions -Amortisation (180) At 28 February 2005 540 The intangible fixed asset relates to the software asset discussed in note 23. 11 Tangible fixed assets Office Land and Plant and furniture and buildings equipment equipment Total £'000 £'000 £'000 £'000CostAt 1 March 2004 791 124 25 940Additions 1,224 69 - 1,293 At 28 February 2005 2,015 193 25 2,233DepreciationAt 1 March 2004 15 93 24 132Charged during period 34 35 - 69 At 28 February 2005 49 128 24 201 Net book valueAt 28 February 2005 1,966 65 1 2,032 At 1 March 2004 776 31 1 808 The basis by which depreciation is calculated are stated in Note 1. 12 Fixed asset investments 2005 £'000Unlisted investment At 1 March 2004 74Additions 37 At 28 February 2005 111 The unlisted investment relates to shares held in a company resident in theUnited States and was valued on acquisition by the directors, on the basis offinancial information available at that time. 13 Debtors 28 February 29 February 2005 2004 £'000 £'000 Trade debtors 828 455Sundry debtors 109 60Prepayments 39 49Amounts due from related undertaking 19 42Accrued income 51 - 1,046 606 14 Creditors - amounts falling due within one year 28 February 29 February 2005 2004 £'000 £'000 Trade creditors 182 135Other taxation and social security 111 82Accruals and deferred income 189 89Corporation tax 291 205Other creditors 34 134Bank loans 121 48Dividend proposed 181 135 1,109 828 15 Creditors - amounts falling due after more than one year 28 February 29 February 2005 2004 £'000 £'000Loans 1,289 523Analysis of debt:Debt can be analysed as falling due:In one year or less 121 48Between one and two years 133 51Between two and five years 466 177In five years or more 690 295 1,410 571 The company has three separate loans, taken out to fund the acquisition ofapartments in London. The loans are secured on these properties. A debentureis also in place over the company's assets and undertaking (excludinguncollected capital). Interest on all loans is variable. Interest of 2% above LIBOR is charged on thecompany's first loan which has an outstanding balance of £196,117. Interest of1.75% above the Bank of Ireland's Northern Ireland base rate is charged on thecompany's second loan which has an outstanding balance of £322,446. Interest of3% above LIBOR is charged on the company's third loan which has an outstandingbalance of £891,334. 16 Provisions for liabilities and charges 28 February 29 February 2005 2004 £'000 £'000Deferred taxationAt beginning of period 7 5(Release)/charge for the period (see note 5) (4) 2 At end of period 3 7 The basis by which taxation is calculated is stated in Note 1. There is nounprovided deferred tax. The elements of deferred taxation are as follows: 28 February 29 February 2005 2004 £'000 £'000Difference between accumulated depreciation and amortisation and capital allowances 4 8Other timing differences (1) (1) Deferred tax liability 3 7 17 Share capital 28 February 29 February 2005 2004 Number £'000 Number £'000Equity sharesAuthorisedOrdinary shares of 0.5pence each 20,000,000 100 20,000,000 100Issued, allotted and fully paidOrdinary shares of 0.5pence each 12,397,825 62 12,317,825 62 Options have been granted as set out below under the company's two share optionschemes which are open to all directors and employees of the company. Theoptions are subject to performance conditions as set by the company prior to thegrant of the option, and are exercisable following the satisfaction of theperformance criteria for a period not exceeding 10 years. Options granted are as follows: Number of shares under Number of sharesoption at under option at29 February 2004 28 February 2005 Exercise price Granted Exercised Lapsed 265,000 - (50,000) (20,000) 195,000 26.5 pence246,000 - - (27,000) 219,000 51.0 pence375,000 - - (46,000) 329,000 53.5 pence 70,000 - - - 70,000 40.0 pence 30,000 - (30,000) - - 50.0 pence- 257,000 - - 257,000 62.0 pence 80,000 share options were exercised during the year, giving rise to an increasein share capital of £400 and an increase in share premium of £28,000. 18 Share premium and reserves Shares to be Share premium Profit and loss issued account account £'000 £'000 At beginning of year 7 752 877Retained profit for the period - - 569Premium on shares issued - 28 -In the money element of options accrued 2 - -Dividend proposed - - (181) At end of year 9 780 1,265 19 Equity shareholders' funds 28 February 29 February 2005 2004 £'000 £'000 Profit for the financial year 569 412Dividend proposed (181) (135)Net proceeds on issue of share capital 28 38In the money element of options accrued 2 7 Increase in shareholders' funds 418 322 Opening shareholders' funds 1,698 1,376 Closing shareholders' funds 2,116 1,698 20 Commitments and contingencies There were no capital commitments at either period end, with the exception ofthe contingent commitment to make additional payments under a software purchaseagreement (note 22). 21 Leasing commitments Annual commitments under non-cancellable operating leases are as follows: 28 February 2005 29 February 2004 Land and Land and buildings buildings £'000 £'000Operating leases which expire:In the second to fifth years inclusive 14 12 22 Contingent liabilities Contingent liabilities exist in respect of grants received by the company,whereby, in the event of the company failing to meet one or more of theconditions contained in the letters of offer to the company, the company wouldbe liable to repay the grant. In 2003 the company purchased a software asset from e-hub.com Limited. Underthe purchase agreement, commission payments will be paid, at a rate of 20% offuture sales above £1,000,000, up to a maximum of an additional £1,100,000. Theamount so paid in the current year was £Nil (2004: Nil). No provision has beenmade in this regard as the crystallisation of this liability is currently deemedto be remote and the expiry date of this agreement is 28 February 2006. 23 Related party transactions Brian Conlon is a shareholder of e-hub.com Limited. During the period thecompany traded with e-hub.com Limited on a normal commercial basis resulting insales of £Nil (2004: £73,094). Purchases on a normal commercial basis frome-hub.com Limited amounted to £Nil. The amount due by e-hub.com Limited to thecompany at 28 February 2005 amounted to £14,541 (2004: £37,542). The amountowed to e-hub.com Limited at 28 February 2005 amounted to £11,525 (2004:£16,225). Brian Conlon is the majority shareholder in k-hub Limited. The company did nottrade with k-hub in the current year. The amount due from k-hub to the companyat 28 February 2005 amounted to £15,933 (2004: £20,933). The company is charged rent annually for the use of apartments owned by themanaging director, located in London. The charge incurred during the financialyear amounted to £52,800 (2004: £22,400). Rent deposits of £26,400 have beenpaid to Brian Conlon in respect of these apartments. 24 Ultimate controlling party The company is controlled by Brian Conlon, its majority shareholder. 25 Reconciliation of operating profit to net cash inflow from operatingactivities Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000 Operating profit 877 600Depreciation on tangible fixed assets 69 30Amortisation of intangible asset 180 180(Increase)/decrease in debtors (445) 60(Decrease)/increase in creditors (66) 188In the money element of options accrued 2 7 Net cash inflow from operating activities 617 1,065 26 Analysis of cash flows for headings in the cash flow statement Year ended Year ended 28 February 29 February 2005 2004 £'000 £'000a) Returns on investment and servicing of finance Interest paid (74) (31) Interest received 8 8 Net cash inflow from returns on investment and servicing of finance (66) (23)b) Taxation Corporation tax paid (160) (269)c) Capital expenditure Purchase of tangible fixed assets (1,318) (856)d) Financing Repayment of long term loan (93) (37) Issue of share capital 28 38 Receipt of new long term loan 932 375 867 376 27 Analysis of changes in net debt during the period Cash in Bank Debt due Debt due hand overdrafts within one year after one year Total £ £ £ £ £ Balance at 1 March 2003 555 - (18) (215) 322Cash flow 293 - 37 - 330New long term loan - - (15) (360) (375)Other non cash change - - (52) 52 - Balance at 1 March 2004 848 - (48) (523) 277Cash flow (60) - 48 45 33New long term loan - - (37) (895) (932)Other non cash change - - (84) 84 - Balance at 28 February 2005 788 - (121) (1,289) (622) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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