26th Jan 2010 08:53
Preliminary announcement of the results for the year ended 30 September 2009
SERVOCA Plc
Highlights
For the year ended 30 September 2009
Group revenues up by 37.1% to £57.6 million (2008: £42.0 million)
Gross profit up by 32.3% to £16.8 million with margins of 29.2% (2008: £12.7 million with margins of 30.3%)
Profit before tax of £2.2 million before share based payment expense of £0.3 million (2008: loss before tax of £1.0 million before exceptional charges of £6.1 million)
Profit after tax of £2.0 million (2008: loss £7.2 million)
Basic earnings per share 2.50p (2008: loss per share 16.13p)
Net debt reduced from £7.5 million in 2008 to £3.4 million in 2009
Cash generated from operations £3.3 million (2008: cash utilised £2.2 million)
Loss making businesses terminated and major restructure programme completed
£5 million placing undertaken in March 2009
Enquiries:
Servoca 020 7747 3030
Andrew Church
FinnCap 020 7600 1658
Geoff Nash
Ed Frisby
Tom Jenkins/Simon Starr (Broking)
Introduction
For the year ended 30 September 2009, Servoca Plc ("the Group") is pleased to report its maiden set of full year profits.
As reported in our Interim Statement for the six months ended 31 March 2009 the business implemented a major restructuring and cost reduction exercise in the first half of the year. This involved the appointment of a new Group Chief Executive, the exit from poorly performing businesses and a reduction in overhead expenditure.
The focus on improved operational management and profit maximisation from existing businesses has delivered strong organic growth and is reflected across all areas of the Group's financial performance, with the results for the year ended 30 September 2009 being comfortably ahead of expectations.
Financial Review
For the year ended 30 September 2009, Group revenue was £57.6 million compared with £42.0 million in the previous year, an increase of 37.1%. Gross profit for the year was £16.8 million against £12.7 million for the year ended 30 September 2008, an increase of 32.3%.
Operating profit for the year was £2.6 million (before share based payment expense of £0.3 million) compared with an operating loss in the prior year of £6.7 million (after goodwill impairment of £3.1 million, exceptional costs of £3.0 million and share based payment expense of nil).
The Group's profit (after interest, before tax and share scheme charges) was £2.2 million compared to a prior year loss (after interest, before tax and exceptional charges) of £1.0 million.
In March 2009, the share capital of the Company was restructured by the sub division of each 10p share in the company into one new 1p ordinary share and one new 9p deferred share. The Company also raised £5.0 million, before expenses, through a placing of 62.5 million ordinary 1p shares at a price of 8p each. Full details of the movement in share capital are disclosed in note 6 to this preliminary announcement.
In July 2009, the Company settled the deferred consideration on the acquisition of Academics Holdings Limited. Additional cash of £2.35 million was paid and 7.6 million new ordinary shares of 1p each were issued to the vendors.
The basic earnings per share for the year were 2.50p compared with a loss per share of 16.13p for the year ended 30 September 2008.
Net debt reduced from £7.5 million at September 2008 to £3.4 million at September 2009.
Cash generated from operations in the year was £3.3 million (September 2008: cash utilised £2.2 million).
Acquisitions / Closed Businesses
On 28 January 2009 Windsor Recruitment & Training Limited was put into administration due to poor trading conditions and losses suffered in the Company's training division and on 9 February 2009, Salus Recruitment Limited was also put into administration.
An arm's length transaction was entered into with the administrators of Windsor Recruitment & Training Limited to acquire the business and certain assets of the healthcare division of that company.
Operational highlights
Strategy and delivery
Our strategy remains unchanged and is to focus on growth in our existing three principal markets of Education Recruitment, Healthcare Recruitment, and Secure Solutions. The management team remains focused on profit delivery and realising the Group's potential, the Board will consider acquisition opportunities where it believes shareholder value can be enhanced.
Healthcare recruitment:
Our Healthcare recruitment business operates through five distinct brands, Firstpoint, Servoca Nursing and Care, Triple West Medical, Pure Medical and The Locum Partnership. These businesses supply a broad spectrum of skills including Allied Health Professionals, Doctors, Nurses, Care Workers and other associated specialisations. This allows us to offer a complete service by having the ability to cover all major staffing disciplines within this sector.
Our businesses in this area experienced strong trading conditions and performance. We reported in our Interim Statement for the six months ended 31 March 2009 that we had taken action to substantially reduce the cost base with a belief that such a reduction would not impact on gross margin. We are pleased to report that this has proved the case and that performance across all financial metrics was improved in the second half despite the rationalisation of certain offices/businesses. Because of the reduced overhead, an increase in gross margin in the second half translated into a significant improvement to net profitability.
Operational highlights
Healthcare recruitment (continued):
In July 2009, Servoca Nursing and Care and Firstpoint were awarded a place on the NHS framework agreement for the supply of nurses to all NHS bodies in England and selected parts of the UK. This agreement started after the year end and runs for three years, it means that these businesses are authorised and approved to supply all grades of nursing personnel to the NHS. This contract win will initially impact margins but is expected to yield a substantial uplift in the volume of opportunities available to these businesses over the medium to longer term.
The healthcare sector remained resilient in the second half and trading conditions remain robust.
Education recruitment:
Our Education recruitment business operates through three brands, Academics, Day to Day Teachers and Dream Education.
Academics was acquired in 2008 and the business has performed strongly since being incorporated into the Group and made a significant contribution to the Groups performance over the year. Academics operates as an education recruitment and training provider which supplies education professionals on a contract or permanent basis to clients in London and the Home Counties.
Dream Education provides long term teaching professionals to schools across the UK, mostly within secondary schools. Historically this business has focused exclusively on the supply of overseas candidates but is now focusing on the supply of UK trained professionals. Changes to work permit regulations have affected our ability to supply overseas teachers on a temporary basis and hence the prioritisation of attracting an increased UK based candidate flow.
Day to Day Teachers is our education recruitment business that provides supply teachers and classroom assistants to cover short-term periods of absence within schools.
In our Interim Statement we confirmed that the sector was proving resilient to the economic climate and relative to other sectors this remains the case. Performance over the second half was robust and made a significant contribution to the Group's overall profitability.
Operational highlights
Secure Solutions:
Our Security Division - Secure Solutions - incorporates two main business areas; corporate security services and criminal justice operations. Our corporate security offering comprises manned guarding, systems services and a corporate investigations unit that engages in a variety of sensitive and highly specialist activities. Our criminal justice operation provides resourcing, training and outsourcing services to a majority of police constabularies throughout the UK. This area also provides investigative skills and services to a range of local and central government authorities.
Our Criminal Justice business performed creditably over the year but our corporate security business faced greater challenges given its exposure to the private sector economy. Given these challenges we implemented a number of cost saving initiatives in the first half that were intended to sustain an efficient business capable of delivering improved profitability going forward. We are pleased to report that we have seen the benefit of our actions in the second half and this ensured a profitable contribution over the period. We are further pleased to report that because of a substantial contract win in our Manned Guarding business, we enter our new financial year with increased visibility on a substantially improved level of profitability.
The focus of our activities in these areas will continue to be ensuring that they continue to make a profitable contribution to the Group's performance.
Board changes
Tony Rogers resigned as a Director with effect from 3 October 2008.
Darren Browne resigned as Chief Executive Officer on 3 November 2008.
Andrew Church was appointed as Chief Executive Officer on 24 November 2008.
Emma Sugarman , founder and Managing Director of Academics Limited, was appointed to the Board on 17 December 2008.
Summary and prospects
Outlook
Servoca holds attractive market positions in resilient sectors and the focus will be on further developing the potential within the Group.
Servoca continues to serve many areas of public sector recruitment that suffer from manpower supply shortages. The Group operates a range of services and positions within its markets and we will continue to expand both existing and new service offerings where we believe strong demand exists.
In the short-term, we are currently experiencing less fluidity in the education recruitment market with fewer teaching professionals moving schools or posts as candidates appear to prioritise job security against the backdrop of the wider economic climate. Whilst this is expected to create a more challenging trading environment as we enter 2010, the sector remains resilient to the economic climate relative to other sectors. Our diversified range of services also means we operate a balanced exposure to a number of markets and for this reason we remain confident of the year ahead.
26 January 2010
Consolidated income statement
For the year ended 30 September 2009
|
Before goodwill, share based payments and exceptional items |
2009 Goodwill, share based payments and exceptional items (note 3) |
Total |
Before goodwill, share based payments and exceptional items |
2008 Goodwill, share based payments and exceptional items (note 3) |
Total |
||||
|
Note |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||
|
Revenue |
57,645 |
- |
57,645 |
42,050 |
- |
42,050 |
|||
|
Cost of sales |
(40,823) |
- |
(40,823) |
(29,320) |
- |
(29,320) |
|||
|
Gross profit |
16,822 |
- |
16,822 |
12,730 |
- |
12,730 |
|||
|
Administrative expenses |
(14,420) |
(322) |
(14,742) |
(13,334) |
(6,139) |
(19,473) |
|||
|
Other operating income |
174 |
- |
174 |
- |
- |
- |
|||
|
Operating profit/(loss) |
2,576 |
(322) |
2,254 |
(604) |
(6,139) |
(6,743) |
|||
|
Finance income |
6 |
- |
6 |
4 |
- |
4 |
|||
|
Finance costs |
(373) |
- |
(373) |
(429) |
- |
(429) |
|||
|
Profit/(loss) before taxation |
2,209 |
(322) |
1,887 |
(1,029) |
(6,139) |
(7,168) |
|||
|
Tax credit |
142 |
- |
142 |
- |
- |
- |
|||
|
Profit/(loss) for the year attributable to equity holders of the parent |
2,351 |
(322) |
2,029 |
(1,029) |
(6,139) |
(7,168) |
|||
|
Earnings/(loss) per share: |
Pence |
Pence |
Pence |
Pence |
Pence |
Pence |
|||
|
- Basic |
4 |
2.89 |
(0.39) |
2.50 |
(2.32) |
(13.81) |
(16.13) |
||
|
- Diluted |
4 |
2.78 |
(0.38) |
2.40 |
(2.32) |
(13.81) |
(16.13) |
Consolidated balance sheet
At 30 September 2009
|
30 September 2009 |
30 September 2008 |
|||||
|
Note |
£'000 |
£'000 |
||||
|
Assets |
||||||
|
Non-current assets |
||||||
|
Intangible assets |
6,613 |
7,237 |
||||
|
Property, plant and equipment |
618 |
697 |
||||
|
Total non-current assets |
7,231 |
7,934 |
||||
|
Current assets |
||||||
|
Trade and other receivables |
5 |
8,654 |
9,908 |
|||
|
Cash and cash equivalents |
278 |
204 |
||||
|
Total current assets |
8,932 |
10,112 |
||||
|
Total assets |
16,163 |
18,046 |
||||
|
Liabilities |
||||||
|
Current liabilities |
||||||
|
Trade and other payables |
(6,959) |
(7,642) |
||||
|
Other financial liabilities |
(3,173) |
(7,637) |
||||
|
Contingent consideration |
(460) |
(4,628) |
||||
|
Corporation tax liability |
(225) |
(367) |
||||
|
Provisions |
(773) |
(1,040) |
||||
|
Total current liabilities |
(11,590) |
(21,314) |
||||
|
Non-current liabilities |
||||||
|
Other financial liabilities |
(514) |
(68) |
||||
|
Contingent consideration |
- |
(460) |
||||
|
Provisions |
(131) |
(352) |
||||
|
Total non-current liabilities |
(645) |
(880) |
||||
|
Total liabilities |
(12,235) |
(22,194) |
||||
|
Total net assets/(liabilities) |
3,928 |
(4,148) |
|
30 September 2009 |
30 September 2008 |
|||||
|
Note |
£'000 |
£'000 |
||||
|
Capital and reserves attributable to equity holders of the company |
||||||
|
Called up share capital |
6 |
5,513 |
4,812 |
|||
|
Share premium account |
7,078 |
2,054 |
||||
|
Merger reserve |
2,772 |
2,772 |
||||
|
Reverse acquisition reserve |
(12,268) |
(12,268) |
||||
|
Retained earnings |
833 |
(1,518) |
||||
|
Total Equity |
3,928 |
(4,148) |
Consolidated statement of changes in equity
For the year ended 30 September 2009
|
Ordinary share capital |
Share premium |
Capital redemption reserve |
Merger reserve |
Reverse acquisitionreserve |
Retained earnings |
Total equity |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
Balance as at 30 September 2007 |
3,931 |
8,812 |
6,036 |
2,772 |
(12,268) |
(9,198) |
85 |
|
|
Changes in equity for the year ended 30 September 2008 |
||||||||
|
Loss for the year |
- |
- |
- |
- |
- |
(7,168) |
(7,168) |
|
|
Total recognised income and expense for the year |
- |
- |
- |
- |
- |
(7,168) |
(7,168) |
|
|
Reduction in capital |
- |
(8,812) |
(6,036) |
- |
- |
14,848 |
- |
|
|
Shares issued for acquisition of subsidiaries |
248 |
856 |
- |
- |
- |
- |
1,104 |
|
|
Issue of share capital |
633 |
1,198 |
- |
- |
- |
- |
1,831 |
|
|
881 |
(6,758) |
(6,036) |
- |
- |
14,848 |
2,935 |
||
|
Balance as at 30 September 2008 |
4,812 |
2,054 |
- |
2,772 |
(12,268) |
(1,518) |
(4,148) |
|
|
Changes in equity for the year ended 30 September 2009 |
||||||||
|
Profit for the year |
- |
- |
- |
- |
- |
2,029 |
2,029 |
|
|
Total recognised income and expense for the year |
- |
- |
- |
- |
- |
2,029 |
2,029 |
|
|
Share based payment transactions |
- |
- |
- |
- |
- |
322 |
322 |
|
|
Issue of share capital |
701 |
5,024 |
- |
- |
- |
- |
5,725 |
|
|
701 |
5,024 |
- |
- |
- |
322 |
6,047 |
||
|
Balance as at 30 September 2009 |
5,513 |
7,078 |
- |
2,772 |
(12,268) |
833 |
3,928 |
Consolidated cash flow statement
For the year ended 30 September 2009
|
30 September 2009 |
30 September 2009 |
30 September 2008 |
30 September 2008 |
|||
|
Note |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
Operating activities |
||||||
|
Profit/(loss) after tax |
2,029 |
(7,168) |
||||
|
Adjustments for: |
||||||
|
Depreciation charges |
250 |
394 |
||||
|
Share based payment expense |
322 |
- |
||||
|
Finance costs |
391 |
429 |
||||
|
Finance income |
(6) |
(4) |
||||
|
Profit on disposal of fixed assets |
(4) |
- |
||||
|
Goodwill impairment |
- |
3,131 |
||||
|
Increase in trade and other receivables |
(419) |
(2,371) |
||||
|
(Decrease)/increase in trade and other payables |
1,177 |
2,537 |
||||
|
Movement in provisions |
(488) |
899 |
||||
|
Cash generated from operations |
3,252 |
(2,153) |
||||
|
Interest paid |
(391) |
(429) |
||||
|
Corporation tax paid |
- |
(326) |
||||
|
Cash flows from operating activities |
2,861 |
(2,908) |
||||
|
Investing activities |
||||||
|
Acquisitions, net of cash acquired |
(3,404) |
(3,544) |
||||
|
Purchase of property, plant and equipment |
(215) |
(595) |
||||
|
Proceeds of sale of property, plant and equipment |
28 |
- |
||||
|
Interest received |
6 |
4 |
||||
|
(3,585) |
(4,135) |
|||||
|
Financing activities |
||||||
|
Issue of ordinary shares |
5,000 |
1,900 |
||||
|
Share issue costs |
(184) |
(68) |
||||
|
Proceeds from loan |
- |
2,000 |
||||
|
Repayment of loan |
(666) |
(167) |
||||
|
(Repayment)/proceeds of finance lease creditor |
(53) |
42 |
||||
|
4,097 |
3,707 |
|||||
|
Increase/(decrease) in cash and cash equivalents |
7 |
3,373 |
(3,336) |
|||
|
Cash and cash equivalents at beginning of the year |
(5,565) |
(2,229) |
||||
|
Cash and cash equivalents at end of the year |
(2,192) |
(5,565) |
SERVOCA Plc
Notes forming part of the preliminary announcement
For the year ended 30 September 2009
1 Accounting policies
Basis of preparation
The principal accounting policies are set out in the Group's financial statements for the year ended 30 September 2009. This preliminary announcement has been prepared on the same basis as the prior year accounts.
This preliminary announcement has been prepared in accordance with International Financial Reporting Standards (IFRSs and IFRIC interpretations) published by the International Accounting Standards Board (IASB), as endorsed for use in the European Union, and with those parts of the Companies Act 2006 applicable to companies preparing their accounts under IFRS.
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985.
Going concern
The Group's business activities together with factors likely to affect its future development, performance and position are set out in the Chairman/Chief Executive Officer. The Group's objectives, policies and processes for managing its capital, its financial risk management objectives, details of its financial instruments and hedging activities and its exposure to credit risk and liquidity risk are described in the Group's financial statements for the year ended 30 September 2009.
The Group's principal sources of financing are equity and invoice discounting facilities secured on book debts. Due to the reliance on invoice discounting facilities, the Group is in a net current liabilities position. During the year ended 30 September 2009, the Group successfully raised £5.0m before expenses by way of a share placing and also settled its remaining contingent consideration commitments. A combination of the equity raising, improved working capital management and improved profitability has resulted in significantly improved generation of cash during the year and increased headroom in borrowing facilities at the year end of £3.0m (2008: £0.4m).
The directors have prepared trading and cash flow forecasts for the period to 31 March 2011 which indicate adequate headroom in borrowing facilities. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.
The independent auditors' report in the statutory accounts of the Group for the year ended 30 September 2009 is unqualified and the accounts will be delivered to the Registrar following the Company's forthcoming General Meeting.
2 Segmental analysis
The Group's primary format for reporting segment information is by business segment, being by type of service supplied. The operating divisions are organised and managed by reporting segment where applicable and by divisions within a reporting entity where necessary.
The Group provides recruitment services to the healthcare and education sectors and the Secure Solutions segment provides outsourced services to the Security sector.
|
Healthcare Recruitment |
Education Recruitment |
Secure Solutions |
Unallocated |
Total |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
For the year ended 30 September 2009: |
||||||
|
Revenue |
27,094 |
20,754 |
9,797 |
- |
57,645 |
|
|
Segment expense |
(25,814) |
(17,925) |
(9,477) |
(2,027) |
(55,243) |
|
|
Share based payment expense |
(222) |
- |
- |
(100) |
(322) |
|
|
Other operating income |
174 |
- |
- |
- |
174 |
|
|
Operating profit/(loss) |
1,232 |
2,829 |
320 |
(2,127) |
2,254 |
|
|
Finance costs |
(98) |
(92) |
(72) |
(111) |
(373) |
|
|
Finance income |
- |
- |
- |
6 |
6 |
|
|
Profit/(loss) before tax |
1,134 |
2,737 |
248 |
(2,232) |
1,887 |
|
|
Balance sheet |
||||||
|
Assets |
4,412 |
8,683 |
2,148 |
920 |
16,163 |
|
|
Liabilities |
(4,357) |
(3,925) |
(2,146) |
(1,807) |
(12,235) |
|
|
Net assets/(liabilities) |
55 |
4,758 |
2 |
(887) |
3,928 |
|
|
Other |
||||||
|
Capital expenditure |
51 |
44 |
56 |
44 |
195 |
|
|
Depreciation |
99 |
59 |
67 |
25 |
250 |
|
|
Amortisation |
- |
- |
- |
- |
- |
|
Healthcare Recruitment |
Education Recruitment |
Secure Solutions |
Unallocated |
Total |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
For the year ended 30 September 2008: |
||||||
|
Revenue |
22,967 |
9,819 |
9,264 |
- |
42,050 |
|
|
Segment expense |
(23,721) |
(8,654) |
(9,538) |
(741) |
(42,654) |
|
|
Goodwill impairment |
(670) |
- |
(2,461) |
- |
(3,131) |
|
|
Exceptional items |
(2,218) |
(15) |
(296) |
(479) |
(3,008) |
|
|
Operating (loss)/profit |
(3,642) |
1,150 |
(3,031) |
(1,220) |
(6,743) |
|
|
Finance costs |
(178) |
(69) |
(50) |
(132) |
(429) |
|
|
Finance income |
- |
- |
3 |
1 |
4 |
|
|
(Loss)/profit before tax |
(3,820) |
1,081 |
(3,078) |
(1,351) |
(7,168) |
|
|
Balance sheet |
||||||
|
Assets |
5,253 |
9,342 |
2,705 |
746 |
18,046 |
|
|
Liabilities |
(7,241) |
(10,437) |
(2,522) |
(1,994) |
(22,194) |
|
|
Net (liabilities)/assets |
(1,988) |
(1,095) |
183 |
(1,248) |
(4,148) |
|
|
Other |
||||||
|
Capital expenditure |
201 |
40 |
69 |
285 |
595 |
|
|
Depreciation |
214 |
41 |
115 |
24 |
394 |
|
|
Amortisation |
- |
- |
3,131 |
- |
3,131 |
3 Exceptional items
The exceptional items can be summarised as follows:
|
30 September 2009 £'000 |
30 September 2008 £'000 |
||
|
Restructuring costs and claims |
542 |
1,568 |
|
|
Legal costs |
(542) |
1,440 |
|
|
- |
3,008 |
|
Goodwill, share based payments and exceptional items |
30 September 2009 £'000 |
30 September 2008 £'000 |
|
|
Goodwill impairment |
- |
3,131 |
|
|
Share based payments |
322 |
- |
|
|
Exceptional items |
- |
3,008 |
|
|
322 |
6,139 |
Restructuring costs and claims:
In 2009, exceptional items relate to a claim in relation to specific employment legislation which the Group is liable to settle, based on legal advice.
In 2008 the Group embarked on a number of new initiatives but it became apparent that certain of those were proving to be a drain on the Group's resources and hence a decision was made to close such activities. In addition, a complete restructuring of the business was commenced which allowed the company to concentrate on its core activities. The costs of the closures and other restructuring costs, including staff costs and the ongoing future commitments in respect of properties, were fully provided and utilised in 2008.
Legal costs:
The Group was involved in two legal cases during the current and prior year. Favourable outcomes in both cases resulted in reduced outflows compared to original expectations and these have been adjusted for accordingly.
4 Earnings/(loss) per share
The calculation of earnings/(loss) per share for the year ended 30 September 2009 is based on a weighted average number of shares in issue during the year of:
|
Basic |
Dilutive effect of share options and shares to be issued |
Diluted |
||
|
30 September 2009 |
81,328,160 |
3,286,448 |
84,614,608 |
|
|
30 September 2008 |
44,430,904 |
- |
44,430,904 |
The above same number of shares are used in all of the earnings/(loss) per share calculations below.
Additional disclosure is also given in respect of earnings/(loss) per share before goodwill impairment and exceptional costs as the directors believe this gives a more accurate presentation of maintainable earnings.
|
Year ended 30 September 2009 |
Basic |
Diluted |
|
|
£'000 |
£'000 |
||
|
Profit used for calculation |
2,029 |
2,029 |
|
|
Goodwill, share based payment expense and exceptional items: |
|||
|
Share based payment expense |
322 |
322 |
|
|
Profit before goodwill, share based payment expense and exceptional items |
2,351 |
2,351 |
|
|
Pence |
Pence |
||
|
Earnings per share |
2.50 |
2.40 |
|
|
Goodwill, share based payment expense and exceptional items: |
|||
|
Share based payment expense |
0.39 |
0.38 |
|
|
Adjusted earnings per share before goodwill, share based payment expense and exceptional items |
2.89 |
2.78 |
|
Year ended 30 September 2008 |
Total |
|
|
£'000 |
||
|
Loss used for basic and diluted calculation |
(7,168) |
|
|
Goodwill, share based payment expense and exceptional items: |
||
|
Goodwill impairment |
3,131 |
|
|
Exceptional items |
3,008 |
|
|
Loss before goodwill, share based payment expense and exceptional items |
(1,029) |
|
|
Pence |
||
|
Basic and diluted loss per share |
(16.13) |
|
|
Goodwill, share based payment expense and exceptional items: |
||
|
Goodwill impairment |
7.04 |
|
|
Exceptional items |
6.77 |
|
|
Adjusted basic and diluted loss per share before goodwill, share based payment expense and exceptional items |
(2.32) |
5 Trade and other receivables
|
30 September 2009 |
30 September 2008 |
||
|
£'000 |
£'000 |
||
|
Due in less than one year: |
|||
|
Trade debtors |
7,944 |
7,967 |
|
|
Less: Provision for impairment of trade receivables |
(794) |
(412) |
|
|
Trade debtors net |
7,150 |
7,555 |
|
|
Other debtors |
335 |
1,440 |
|
|
Prepayments and accrued income |
1,169 |
913 |
|
|
8,654 |
9,908 |
Included in other debtors is an amount of £52,000 (30 September 2008: £136,000) relating to taxation and social security.
5 Trade and other receivables (continued)
|
30 September 2009 |
30 September 2008 |
||
|
£'000 |
£'000 |
||
|
Total financial assets other than cash and cash equivalents classified as loans and receivables |
7,485 |
8,995 |
|
|
Cash and cash equivalents |
278 |
204 |
|
|
Total financial assets classified as loans and receivables |
7,763 |
9,199 |
The fair values of financial assets classified as loan and receivables approximate to their carrying value.
Trade receivables are non-interest bearing and are generally on 14-60 day terms. At 30 September 2009, trade receivables of £794,000 were impaired and fully provided for.
At 30 September 2009 the analysis of trade receivables is:
|
Neither past due nor |
Past due or impaired |
|||||
|
Total |
impaired |
31-60 |
60-90 |
90-120 |
120+ |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Trade receivables |
7,944 |
5,487 |
1,119 |
514 |
192 |
632 |
|
Provision |
(794) |
- |
- |
- |
(162) |
(632) |
|
7,150 |
5,487 |
1,119 |
514 |
30 |
- |
|
At 30 September 2008 the analysis of trade receivables was:
|
Neither past due nor |
Past due or impaired |
|||||
|
Total |
impaired |
31-60 |
60-90 |
90-120 |
120+ |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Trade receivables |
7,967 |
4,568 |
1,042 |
884 |
222 |
1,251 |
|
Provision |
(412) |
- |
- |
- |
- |
(412) |
|
7,555 |
4,568 |
1,042 |
884 |
222 |
839 |
|
Movements on the Group provision for impairment of trade receivables are as follows:
|
30 September 2009 |
30 September 2008 |
||
|
£'000 |
£'000 |
||
|
At beginning of the period |
412 |
782 |
|
|
Acquired on acquisitions |
- |
52 |
|
|
Provided/(utilised) during the year |
382 |
(422) |
|
|
At end of the year |
794 |
412 |
6 Called up share capital
|
30 September 2009 Number '000 |
30 September 2009 £'000 |
30 September 2008 Number '000 |
30 September 2008 £'000 |
|||
|
Authorised: |
||||||
|
Ordinary shares of 10p each |
- |
- |
200,000 |
20,000 |
||
|
Ordinary shares of 1p each |
1,566,917 |
15,669 |
- |
- |
||
|
Preference shares of £1 each |
7,400 |
7,400 |
7,400 |
7,400 |
||
|
Deferred shares of 9p each |
48,120 |
4,331 |
- |
- |
||
|
1,622,437 |
27,400 |
207,400 |
27,400 |
|||
|
Allotted, issued and fully paid: |
||||||
|
Ordinary shares of 10p each |
- |
- |
48,120 |
4,812 |
||
|
Ordinary shares of 1p each |
118,191 |
1,182 |
- |
- |
||
|
Preference shares of £1 each |
- |
- |
- |
- |
||
|
Deferred shares of 9p each |
48,120 |
4,331 |
- |
- |
||
|
166,311 |
5,513 |
48,120 |
4,812 |
Preliminary announcement of the results for the year ended 30 September 2009
On 30 March 2009, each issued ordinary share of 10p each was sub-divided into one new ordinary share of 1p each and one deferred share of 9p each. On the same day, each authorised but unissued ordinary share of 10p each was sub-divided into 10 new ordinary shares of 1p each.
The deferred shares hold no rights to attend or vote at general meetings, have no dividend rights and would not participate in the assets of the company on a winding up.
The preference shares, none of which are issued, hold no dividend rights except in the event of a winding up of the Company when any assets held for distribution are first applied to the holders of these shares to the extent they are paid up.
Movements in issued share capital
|
Ordinary shares of 1p each Number '000 |
Ordinary shares of 1p each £'000 |
Deferred Shares of 9p each Number '000 |
Deferred Shares of 9p each £'000 |
Ordinary Shares of 10p each Number '000 |
Ordinary Shares of 10p each £'000 |
||
|
In issue at 1 October 2008 |
- |
- |
- |
- |
48,120 |
4,812 |
|
|
Capital reorganisation |
48,120 |
481 |
48,120 |
4,331 |
(48,120) |
(4,812) |
|
|
Issued during year |
70,071 |
701 |
- |
- |
- |
- |
|
|
In issue at 30 September 2009 |
118,191 |
1,182 |
48,120 |
4,331 |
- |
- |
On 30 March 2009, the Company issued 62,500,000 ordinary 1p shares by way of a Placing at an issue price of 8p per share.
On 10 July 2009, 7,571,428 ordinary 1p shares were issued at 12p each as part of the contingent consideration due on the acquisition of Academics Limited.
7 Notes to the consolidated cash flow statement
a) Cash and cash equivalents comprise
|
30 September 2009 |
30 September 2008 |
||
|
£'000 |
£'000 |
||
|
Cash available on demand |
278 |
204 |
|
|
Overdrafts |
(100) |
(235) |
|
|
Invoice discounting facilities |
(2,370) |
(5,534) |
|
|
(2,192) |
(5,565) |
||
|
Cash and cash equivalents at beginning of period |
(5,565) |
(2,229) |
|
|
Net cash increase/(decrease) in cash and cash equivalents |
3,373 |
(3,336) |
b) Analysis of net debt
|
As at 1 October 2008 |
Cash flow |
Arising on acquisitions |
Non cash movement |
As at 30 September 2009 |
||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||
|
Cash and cash equivalents |
(5,565) |
3,373 |
- |
- |
(2,192) |
|
|
Finance lease obligations |
(103) |
53 |
- |
- |
(50) |
|
|
Loans |
(1,833) |
666 |
- |
- |
(1,167) |
|
|
(7,501) |
4,092 |
- |
- |
(3,409) |
8 Copies of the annual accounts and financial statements for the year ended 30 September 2009 are not being posted to shareholders but will be available to view and download from the company's website, www.servoca.com
Related Shares:
Servoca