17th Apr 2009 07:00
NetDimensions (Holdings) Limited
("NetDimensions" or "the Company")
Final Results for the year ended 31 December 2008
NetDimensions (AIM: NETD), a provider of performance, knowledge and learning management systems, announces its Final Results for the year ended 31 December 2008.
Financial Highlights
Revenues up 46% to US$6.35 million (2007: US$4.34 million)
Operating profit of US$0.09 million (2007: US$1.08 million loss)
Pre-tax loss of US$0.59 million (2007: US$0.95 million pre-tax loss)
Cash flow from operating activities of US$0.65 million (2007: US$0.59 million)
Cash balances of US$5.34 million (2007: US$5.71 million) and no debt
Operational Highlights
Investment in 50:50 joint venture with Azeus Systems Holdings Ltd
Acquisition of 25% interest in Peak Pacific Ltd, in September 2008
Expansion of the Company's sales, marketing and engineering operations
New operations opened in the Philippines to provide additional support and services
Approximately 90 new clients across the financial services, aviation, energy and healthcare sectors
Release of version 5.5 of flagship product Enterprise Knowledge Platform
Commenting on the results and the outlook, Roger Durn, Chairman, said:
"NetDimensions has a sound business model and, as a rapidly expanding and cash generative business, remains in a good position to grow. We have maintained a healthy cash level, with cash balances on 31 December 2008 of US$5.34 million held in a mix of US Dollars, Sterling and Euros. This equates to approximately 14.7p per share at 31 December 2008 currency rates. We will continue to use cash prudently and we believe that the two investments made in 2008 represent future growth opportunities for the Company.
"While market conditions are likely to be more challenging reflecting the broader macro-economic conditions, the first quarter of trading results in 2009 were generally in line with management expectations."
Enquiries:
|
NetDimensions |
Jay Shaw |
Tel: +852 2122 4500 |
|
Jeffery Cheung |
||
|
Arden Partners plc |
Fred Walsh |
Tel: +44 20 7398 1651 |
|
Nomad & Broker |
||
|
Matthew Armitt |
||
|
Walbrook PR Ltd |
Paul McManus |
Tel: +44 20 7933 8780 |
|
Financial Public Relations |
Mob: +44 7980 541 893 |
|
|
Ben Knowles |
Mob: +44 7900 346 978 |
|
NETDIMENSIONS (HOLDINGS) LIMITED
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report on the results of NetDimensions (Holdings) Limited for the year ended 31 December 2008, our second year as a listed company, which has proved to be both an exciting and successful year for the Company.
Financial Review
During 2008 NetDimensions increased revenues by 46% to US$6.35 million (2007: US$4.34 million). Despite the more uncertain global economic conditions in the second half of the year, the fundamental strength of our business has led to improved results. The Company has maintained significant growth in our two biggest regions, EMEA and North America, with increases of 56% and 30% respectively over the same period last year. We have made good progress in driving sales of software licenses and hosting which increased by 42% and 55% respectively in the same period.
Gross profit margin was 93% (2007: 96%). The reduction in gross profit margin can be attributed to the introduction of a new product, Enterprise Content Platform, jointly designed and developed with Xyleme Inc. Administration expenses were in line with the Group's increase in the development and expansion of products, sales and marketing capability.
The Company made an operating profit of US$0.09 million (2007: US$1.08 million loss). Due to the cash balances on 31 December 2008 being held in a mix of US Dollars, Sterling and Euros, the Company had an unrealised foreign exchange charge of US$0.71 million for the year ended 31 December 2008. Although this is a non-cash charge, it had a substantial effect on the Company's current year reported profitability. In addition, the Company had to report the losses related to the combined start-up expenses for the two companies in which NetDimensions invested during the year. Overall the Company made a pre-tax loss of US$0.59 million (2007: US$0.95 million pre-tax loss).
The Company has continued to maintain a strong cash position, with cash balances of US$5.34 million (2007: US$5.71 million) and the cash generated from the operating activities for the year was US$0.65 million (2007: US$0.59 million).
The Board does not intend to recommend payment of a dividend at this stage in the Company's development, however, it is the Board's intention to pay dividends in the future. Surplus funds will be used to reinvest in the continued growth of the Company.
Operational Review
The Company has made substantial progress in key areas during the year and has continued to deliver on the strategy set out at the time of the IPO, including:
The investment in two strategic partnerships:
a 50:50 joint venture agreement with Azeus Systems Holdings Ltd, a leading IT services provider listed on the main board of the Singapore Stock Exchange, as announced on 21 April 2008; and
the acquisition of a 25% interest in Peak Pacific Limited, which was formed in September 2008 through the spin-out of Cathay Pacific Airways' corporate eLearning business unit.
The continued expansion of the Company's sales, marketing and engineering operations.
The Company added approximately 90 new clients during 2008. Our new client wins in 2008 include, for example, Yorkshire Housing Association, Royal London, Virgin Atlantic Airways, International Federation of Airline Pilots' Associations, Royal Air Force of Oman, Liz Claiborne Inc., Dak Americas LLC, Miami Herald, iLevel by Weyerhaeuser, Electrabel Nederland and University of Cape Town. We continue to target industries which are highly regulated such as financial services, aviation, energy and healthcare.
We focused in 2008 on strengthening our services by offering a more structured implementation services programme for both existing and new clients. Clients are given a choice between three different implementation services packages to help them install our flagship product, the Enterprise Knowledge Platform (EKP), the way they want. For customers with special requirements, an implementation services package can be tailored that is uniquely suited to their needs.
The Company also set up operations in the Philippines to address the growing need for dedicated technical support for clients around the world. The technical team has now grown to eight and will soon expand to incorporate marketing and graphic design services as well.
As part of the Company's goal of continuous product improvement to give clients an easier and more convenient experience with EKP and let them focus on learning, version 5.5 of EKP was released in August 2008. Designed in partnership with our customers to meet their requirements, EKP 5.5 includes visual enhancements, improvements in accessibility, resource management, usability and version control. The new technology is sold as part of the Company's high-end EKP Gold offering and in the Enterprise Assessment Platform (EAP). In addition, post year end, we released EKP 5.6 which contains additional strategic enhancements to our flagship product.
EAP offers organisations a platform for testing and certification. This is used by airlines which require flight operations testing for pilot certification and for other staff compliance licensing. EAP is focused on highly regulated industries such as financial services, transportation, public utilities, government agencies and other services focused sectors.
Outlook
NetDimensions has a sound business model and, as a rapidly expanding and cash generative business, remains in a good position to grow. We have maintained a healthy cash level, with cash balances on 31 December 2008 of US$5.34 million held in a mix of US Dollars, Sterling and Euros. This equates to approximately 14.7p per share at 31 December 2008 currency rates. We will continue to use cash prudently and we believe that the two investments made in 2008 represent future growth opportunities for the Company.
We will continue to seek to take advantage of demand for our services, particularly from clients in highly regulated and compliance driven industries. Our focus will be much more on industry verticals and putting more time and effort into creating functionality that will help us expand usage within client accounts, as well as attract new customers.
While market conditions are likely to be more challenging reflecting the broader macro-economic conditions, the first quarter of trading results in 2009 were generally in line with management expectations.
Roger Philip Edward Durn
Chairman
17 April 2009
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2008
|
Notes |
2008 |
2007 |
||
|
US$ |
US$ |
|||
|
Revenue |
1 & 2 |
6,352,524 |
4,336,659 |
|
|
Cost of sales |
(421,645) |
(170,057) |
||
|
Gross profit |
5,930,879 |
4,166,602 |
||
|
Administrative expenses before exceptional items |
(5,837,302) |
(4,152,202) |
||
|
Exceptional costs of Placing and Admission to AIM |
- |
(1,094,967) |
||
|
Total administrative expenses |
(5,837,302) |
(5,247,169) |
||
|
Operating profit/(loss) |
93,577 |
(1,080,567) |
||
|
Net finance (costs)/gains |
3 |
(507,795) |
131,903 |
|
|
Share of loss of an associate |
(24,041) |
- |
||
|
Share of loss of a jointly controlled entity |
(150,403) |
- |
||
|
Loss before taxation |
4 |
(588,662) |
(948,664) |
|
|
Taxation |
- |
- |
||
|
Loss for the year |
(588,662) |
(948,664) |
||
|
Attributable to: |
||||
|
Equity shareholders of the Company |
(588,662) |
(948,664) |
||
|
Loss per share: |
5 |
|||
|
Basic |
|
US$(0.02) |
US$(0.04) |
|
|
Diluted |
|
US$(0.02) |
US$(0.04) |
|
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE YEAR ENDED 31 DECEMBER 2008
|
Notes |
2008 |
2007 |
||
|
US$ |
US$ |
|||
|
Exchange differences on translation of |
||||
|
foreign operations |
|
37,702 |
(3,631) |
|
|
Income and expense recognised directly in |
||||
|
equity |
37,702 |
(3,631) |
||
|
Loss for the year |
(588,662) |
(948,664) |
||
|
Total income and expense recognised in the year |
(550,960) |
(952,295) |
||
|
|
||||
|
Attributable to: |
||||
|
Equity shareholders of the Company |
(550,960) |
(952,295) |
||
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2008
|
Notes |
2008 |
2007 |
||
|
US$ |
US$ |
|||
|
ASSETS |
||||
|
Non-current assets |
||||
|
Property, plant and equipment |
|
144,394 |
202,980 |
|
|
Intangible assets |
|
49,790 |
40,503 |
|
|
Interest in an associate |
|
226,275 |
- |
|
|
Interest in a jointly controlled entity |
|
49,597 |
- |
|
|
470,056 |
243,483 |
|||
|
Current assets |
||||
|
Inventories |
|
- |
10,584 |
|
|
Trade and other receivables |
|
3,254,905 |
2,737,537 |
|
|
Cash and cash equivalents |
6 |
5,338,405 |
5,711,745 |
|
|
8,593,310 |
8,459,866 |
|||
|
TOTAL ASSETS |
9,063,366 |
8,703,349 |
||
|
EQUITY AND LIABILITIES |
||||
|
Equity attributable to equity holders of the |
||||
|
Company |
||||
|
Share capital |
|
24,914 |
24,864 |
|
|
Reserves |
|
5,727,407 |
6,239,190 |
|
|
Total equity |
5,752,321 |
6,264,054 |
||
|
Non-current liabilities |
||||
|
Obligations under finance leases |
|
1,026 |
2,378 |
|
|
Current liabilities |
||||
|
Trade and other payables |
|
3,308,651 |
2,435,558 |
|
|
Obligations under finance leases |
|
1,368 |
1,359 |
|
|
3,310,019 |
2,436,917 |
|||
|
Total liabilities |
3,311,045 |
2,439,295 |
||
|
TOTAL EQUITY AND LIABILITIES |
9,063,366 |
8,703,349 |
||
The financial statements were approved by the Board of Directors on 17 April 2009 and were signed on its behalf by Jeffery Cyril Chung Man Cheung, Director.
BALANCE SHEET AS AT 31 DECEMBER 2008
|
Notes |
2008 |
2007 |
||
|
US$ |
US$ |
|||
|
ASSETS |
||||
|
Non-current assets |
||||
|
Investments in subsidiaries |
|
902,737 |
901,737 |
|
|
Interest in an associate |
|
250,000 |
- |
|
|
Interest in a jointly controlled entity |
|
200,000 |
- |
|
|
1,352,737 |
901,737 |
|||
|
Current assets |
||||
|
Trade and other receivables |
|
4,217,113 |
4,088,214 |
|
|
Cash and cash equivalents |
|
3,533,224 |
4,896,721 |
|
|
7,750,337 |
8,984,935 |
|||
|
TOTAL ASSETS |
9,103,074 |
9,886,672 |
||
|
EQUITY AND LIABILITIES |
||||
|
Equity attributable to equity holders of |
||||
|
the Company |
||||
|
Share capital |
|
24,914 |
24,864 |
|
|
Reserves |
|
9,026,478 |
9,809,773 |
|
|
Total equity |
9,051,392 |
9,834,637 |
||
|
Current liabilities |
||||
|
Trade and other payables |
|
51,682 |
52,035 |
|
|
Total liabilities |
51,682 |
52,035 |
||
|
TOTAL EQUITY AND LIABILITIES |
9,103,074 |
9,886,672 |
||
The financial statements were approved by the Board of Directors on 17 April 2009 and were signed on its behalf by Jeffery Cyril Chung Man Cheung, Director.
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2008
|
Notes |
2008 |
2007 |
||
|
US$ |
US$ |
|||
|
Cash flows from operating activities |
7 |
648,844 |
587,514 |
|
|
Cash flows from investing activities |
||||
|
Purchase of property, plant and equipment |
(43,495) |
(216,391) |
||
|
Purchase of intangible assets |
(56,828) |
(43,344) |
||
|
Interest received |
199,571 |
156,012 |
||
|
Investment in an associate |
(250,000) |
- |
||
|
Investment in a jointly controlled entity |
(200,000) |
- |
||
|
Net cash used in investing activities |
(350,752) |
(103,723) |
||
|
Cash flows from financing activities |
||||
|
Finance lease charge |
(335) |
(333) |
||
|
Repayments of borrowings and finance leases |
(1,368) |
(1,359) |
||
|
Net proceeds from issue of shares |
- |
4,735,613 |
||
|
Net cash (used in)/generated from financing activities |
(1,703) |
4,733,921 |
||
|
Net increase in cash and cash equivalents |
296,389 |
5,217,712 |
||
|
Cash and cash equivalents at beginning of the year |
5,711,745 |
521,332 |
||
|
Effect of foreign exchange rate changes, net |
(669,729) |
(27,299) |
||
|
Cash and cash equivalents at end of the year |
|
5,338,405 |
5,711,745 |
|
NOTES TO THE FINANCIAL STATEMENTS
1. REVENUE
Revenue represents the aggregate of income from software licensing, hosting services, support and maintenance and software customisation and implementation services during the year and is analysed as follows:
|
2008 |
2007 |
||
|
US$ |
US$ |
||
|
Software licensing |
2,986,803 |
2,110,347 |
|
|
Hosting |
2,139,048 |
1,383,146 |
|
|
Support and maintenance |
892,602 |
575,108 |
|
|
Software customisation and implementation |
334,071 |
268,058 |
|
|
6,352,524 |
4,336,659 |
2. SEGMENTAL ANALYSIS
Primary reporting format - geographic segments
The Group operates in three geographic segments, North America, Europe, Middle East and Africa ("EMEA") and Rest of the World. These geographic segments are the basis on which the Group reports its primary segment information, as presented below:
Segmental information for the year ended 31 December 2008:
|
North |
Rest of the |
||||||
|
America |
EMEA |
World |
Total |
||||
|
US$ |
US$ |
US$ |
US$ |
||||
|
Revenue from external customers |
2,616,339 |
2,350,482 |
1,385,703 |
6,352,524 |
|||
|
Revenue |
2,616,339 |
2,350,482 |
1,385,703 |
6,352,524 |
|||
|
Operating profit |
38,541 |
34,624 |
20,412 |
93,577 |
|||
|
Net finance costs |
(507,795) |
||||||
|
Share of loss of an associate |
(24,041) |
||||||
|
Share of loss of a jointly controlled entity |
(150,403) |
||||||
|
Loss before taxation |
(588,662) |
||||||
|
Taxation |
- |
||||||
|
Loss for the year |
(588,662) |
Other segment items included in the income statement for the year ended 31 December 2008:
|
North |
Rest of the |
||||||
|
America |
EMEA |
World |
Total |
||||
|
US$ |
US$ |
US$ |
US$ |
||||
|
Depreciation |
17,471 |
4,311 |
79,951 |
101,733 |
|||
|
Amortisation |
11,179 |
273 |
36,351 |
47,803 |
|||
|
Bad debts |
59,650 |
- |
22,343 |
81,993 |
Information regarding segment assets and liabilities as at 31 December 2008 and capital expenditure in the year then ended, based on the locations of customers:
|
North |
Rest of the |
||||||
|
America |
EMEA |
World |
Total |
||||
|
US$ |
US$ |
US$ |
US$ |
||||
|
Total assets |
159,516 |
7,564 |
8,896,286 |
9,063,366 |
|||
|
Total liabilities |
87,520 |
- |
3,223,525 |
3,311,045 |
|||
|
Tangible assets additions |
3,803 |
3,398 |
36,294 |
43,495 |
|||
|
Intangible assets additions |
10,839 |
766 |
45,223 |
56,828 |
|||
|
Total capital expenditure |
14,642 |
4,164 |
81,517 |
100,323 |
It is considered that there is no material difference in the information regarding segment assets and liabilities as at 31 December 2008 and capital expenditure in the year then ended, either based on the locations of customers or the locations of assets, no further disclosure is presented.
Segmental information for the year ended 31 December 2007:
|
North |
Rest of the |
||||||
|
America |
EMEA |
World |
Total |
||||
|
US$ |
US$ |
US$ |
US$ |
||||
|
Revenue from external customers |
2,017,356 |
1,505,697 |
813,606 |
4,336,659 |
|||
|
Revenue |
2,017,356 |
1,505,697 |
813,606 |
4,336,659 |
|||
|
Operating loss |
(502,666) |
(375,175) |
(202,726) |
(1,080,567) |
|||
|
Net finance gains |
131,903 |
||||||
|
Loss before taxation |
(948,664) |
||||||
|
Taxation |
- |
||||||
|
Loss for the year |
(948,664) |
Other segment items included in the income statement for the year ended 31 December 2007:
|
North |
Rest of the |
||||||
|
America |
EMEA |
World |
Total |
||||
|
US$ |
US$ |
US$ |
US$ |
||||
|
Depreciation |
15,030 |
2,062 |
53,325 |
70,417 |
|||
|
Amortisation |
253 |
- |
18,098 |
18,351 |
|||
|
Bad debts |
63,949 |
- |
2,287 |
66,236 |
Information regarding segment assets and liabilities as at 31 December 2007 and capital expenditure in the year then ended, based on the location of customers:
|
North |
Rest of the |
||||||
|
America |
EMEA |
World |
Total |
||||
|
US$ |
US$ |
US$ |
US$ |
||||
|
Total assets |
184,896 |
6,718 |
8,511,735 |
8,703,349 |
|||
|
Total liabilities |
107,772 |
- |
2,331,523 |
2,439,295 |
|||
|
Tangible assets additions |
63,279 |
7,928 |
145,184 |
216,391 |
|||
|
Intangible assets additions |
2,022 |
- |
41,322 |
43,344 |
|||
|
Total capital expenditure |
65,301 |
7,928 |
186,506 |
259,735 |
It is considered that there is no material difference in the information regarding segment assets and liabilities as at 31 December 2007 and capital expenditure in the year then ended, either based on the locations of customers or the locations of assets, no further disclosure is presented.
Secondary reporting format - business segments
The Group's business segments are support and maintenance, hosting, software customisation and implementation and software licensing. These business segments are the basis on which the Group reports its secondary segment information, as presented below:
Segmental information for the year ended 31 December 2008:
|
Software |
||||||||||
|
customisation |
||||||||||
|
Support and |
and |
Software |
||||||||
|
maintenance |
Hosting |
implementation |
licensing |
Total |
||||||
|
US$ |
US$ |
US$ |
US$ |
US$ |
||||||
|
Segment revenue from external customers |
892,602 |
|
2,139,048 |
|
334,071 |
2,986,803 |
6,352,524 |
|||
|
|
|
|||||||||
|
Total capital expenditure |
14,095 |
|
33,779 |
|
5,277 |
47,172 |
100,323 |
|||
|
|
|
|||||||||
|
Total carrying amounts of segment assets |
1,273,506 |
|
3,051,854 |
|
476,631 |
4,261,375 |
9,063,366 |
|||
Segmental information for the year ended 31 December 2007:
|
Software |
||||||||||
|
customisation |
||||||||||
|
Support and |
and |
Software |
||||||||
|
maintenance |
Hosting |
implementation |
licensing |
Total |
||||||
|
US$ |
US$ |
US$ |
US$ |
US$ |
||||||
|
Segment revenue from external customers |
575,108 |
1,383,146 |
268,058 |
2,110,347 |
4,336,659 |
|||||
|
Total capital expenditure |
34,445 |
82,841 |
16,055 |
126,394 |
259,735 |
|||||
|
Total carrying amounts of segment assets |
1,154,199 |
2,775,871 |
537,972 |
4,235,307 |
8,703,349 |
|||||
3. NET FINANCE (COSTS)/GAINS
|
2008 |
2007 |
||
|
US$ |
US$ |
||
|
Bank interest income |
199,571 |
156,012 |
|
|
Finance lease charge |
(335) |
(333) |
|
|
Foreign exchange loss |
(707,031) |
(23,776) |
|
|
(507,795) |
131,903 |
4. LOSS BEFORE TAXATION
Loss before taxation is arrived after charging -
|
2008 |
2007 |
||
|
US$ |
US$ |
||
|
Depreciation of property, plant and equipment |
101,733 |
70,417 |
|
|
Amortisation of computer software |
47,803 |
18,351 |
|
|
Loss on disposal of property, plant and equipment |
511 |
1,563 |
|
|
Statutory audit services |
48,943 |
47,433 |
|
|
Taxation services |
4,977 |
4,340 |
|
|
Operating lease rentals |
|||
|
- land and buildings |
170,082 |
126,849 |
|
|
Research and development |
|||
|
- current year expenditure |
1,388,717 |
995,946 |
|
|
Foreign exchange loss |
707,031 |
23,776 |
5. LOSS PER SHARE
The calculation of the basic and diluted loss per share is based on the following data:
|
2008 |
2007 |
||
|
US$ |
US$ |
||
|
Loss used for the 'Loss per share' |
|||
|
Loss for the purpose of basic loss per share being net loss attributable to equity shareholders of the parent |
(588,662) |
(948,664) |
|
|
Loss for the purpose of diluted loss per share |
(588,662) |
(948,664) |
|
|
2008 |
2007 |
||
|
US$ |
US$ |
||
|
Loss used for the 'Loss per share before exceptional costs' |
|||
|
(Loss)/earnings for the purpose of basic loss before exceptional costs per share being net loss attributable to equity shareholders of the parent less exceptional costs of US$1,094,967 in 2007 related to the admission to AIM |
(588,662) |
146,303 |
|
|
(Loss)/earnings before exceptional costs for the purpose of diluted earnings per share |
(588,662) |
146,303 |
|
2008 |
2007 |
||||
|
Number of shares |
|||||
|
Weighted average number of ordinary and preferred shares for the purpose of basic loss per share |
24,885,980 |
23,089,650 |
|||
|
Effect of dilutive potential ordinary and preferred shares: |
|||||
|
Share options |
1,239,475 |
1,453,451 |
|||
|
Weighted average number of ordinary and preferred shares for the purpose of dilutive loss per share |
26,125,455 |
24,543,101 |
|||
|
2008 |
2007 |
||||
|
US$ |
US$ |
||||
|
Loss per share: |
|||||
|
Basic |
(0.02) |
(0.04) |
|||
|
Diluted |
(0.02) |
(0.04) |
|||
|
(Loss)/Earnings per share before exceptional costs: |
|||||
|
Basic |
(0.02) |
0.01 |
|||
|
Diluted |
(0.02) |
0.01 |
|||
6. CASH AND CASH EQUIVALENTS
|
The Group |
The Company |
||||||
|
2008 |
2007 |
2008 |
2007 |
||||
|
US$ |
US$ |
US$ |
US$ |
||||
|
Cash at bank and in hand |
|||||||
|
US dollars |
30,121 |
21,042 |
150 |
285 |
|||
|
Sterling pounds |
8 |
461 |
- |
- |
|||
|
Euros |
8 |
156 |
- |
- |
|||
|
Hong Kong dollars |
46,645 |
35,242 |
13 |
- |
|||
|
Other currencies |
609 |
- |
- |
- |
|||
|
Short-term bank deposits |
|||||||
|
US dollars |
762,966 |
422,108 |
96,813 |
16,376 |
|||
|
Sterling pounds |
1,440,063 |
2,471,592 |
1,361,220 |
2,249,561 |
|||
|
Euros |
2,879,317 |
2,533,537 |
2,022,428 |
2,533,511 |
|||
|
Hong Kong dollars |
178,211 |
227,039 |
52,600 |
96,988 |
|||
|
Other currencies |
457 |
568 |
- |
- |
|||
|
5,338,405 |
5,711,745 |
3,533,224 |
4,896,721 |
||||
Short-term deposits are made for varying periods depending on the cash requirements of the Group, and earn interest at market short-term deposits rates of between 0.75% and 5.20%.
7. CASH FLOWS FROM OPERATING ACTIVITIES
|
2008 |
2007 |
||
|
US$ |
US$ |
||
|
Loss before taxation |
(588,662) |
(948,664) |
|
|
Exceptional costs of Placing and Admission to AIM |
- |
1,094,967 |
|
|
Equity settled share-based payments |
38,911 |
133,094 |
|
|
Depreciation |
101,733 |
70,417 |
|
|
Amortisation |
47,803 |
18,351 |
|
|
Loss on disposal of property, plant and equipment |
511 |
1,563 |
|
|
Finance lease charges |
335 |
333 |
|
|
Interest income |
(199,571) |
(156,012) |
|
|
Share of loss of an associate |
24,041 |
- |
|
|
Share of loss of a jointly controlled entity |
150,403 |
- |
|
|
Unrealised exchange loss |
707,031 |
23,776 |
|
|
Operating cash flows before changes in working capital |
282,535 |
237,825 |
|
|
Decrease in inventories |
10,584 |
2,370 |
|
|
Increase in receivables |
(517,368) |
(334,051) |
|
|
Increase in payables |
873,093 |
681,370 |
|
|
Cash flows generated from operating activities |
648,844 |
587,514 |
Related Shares:
NETD.L