12th Sep 2006 07:02
Ascribe plc12 September 2006 Press Release 12 September 2006 Ascribe plc ("Ascribe" or "the Group") Preliminary Results Bolton, UK: Ascribe (AIM:ASP), the health IT Group, today announces itsPreliminary Results for the year ended 30 June 2006. Highlights - Revenues up 85% to £9.9m (2005: £5.3m)- Successful completion and integration of three significant acquisitions- Like for like revenues up 15%- Recurring maintenance revenue at 62% (2005: 61%)- Earnings before interest, taxation, depreciation and amortisation(1) (EBITDA) increased 111% to £2.3m (2005: £1.1m)- Adjusted operating profit(2) up 141% to £2.2m (2005: £0.9m)- Operating margin(2) of 22% (2005: 17%)- Adjusted profit before tax(2) up 129% to £2.2m- Profit before tax up by 111% to £1.4m (2005: £0.7m)- Operating cash is 112% of operating profit- Adjusted earnings per share(2) up 86% to 1.73p (2005: 0.93p)- Dividend of 0.13p per share proposed - an increase of 30% on last year (1) before charge for share based payments(2) before goodwill amortisation and charge for share based payments Stephen Critchlow, Executive Chairman of Ascribe, commented: "I am delighted toreport that Ascribe has achieved record trading results this year; this has comefrom organic growth across the group combined with excellent results from theconsolidation of our acquisitions. Together, this means that Ascribe enters 2006/7 with an integrated portfolio of services that can deliver across the wholeHealth IT market - independently of the NHS's National Programme for IT. We arenow well positioned to take advantage of a health system demanding new softwareproducts to achieve the changes they need in a marketplace where both the publicsector and other software providers are facing some extremely high profilechallenges." For further information please contact:Ascribe plcStephen Critchlow, Executive Chairman Tel: +44 161 280 8080Jeremy Lee, Group Finance Director www.ascribe.com CenkosIan Soanes Tel: +44 20 7397 8900 www.cenkos.comMedia enquiries:AbchurchStephanie Cuthbert / Justin Heath Tel: +44 20 7398 [email protected] www.abchurch-group.com CHAIRMAN'S STATEMENT AND OPERATIONAL REVIEW I am delighted to report that for the year ended 30 June 2006, Ascribe hasachieved record trading results. There has been a 141% increase in adjustedoperating profit and the Group has grown to the size where it is capable ofdelivering to the whole Health IT market. We are well positioned to meet theneeds of our customers and deliver increased value to our shareholders. The Group has further enhanced its health software solutions; increased itssales revenue and market share through organic growth and acquisition;significantly increased profitability for the second year in succession; anddelivered another year of excellent operating cash conversion. We have demonstrated that our approach of selling from the bottom-up to ourhealthcare customers is not only successful, it also delivers customersatisfaction. The products we now have across the Group allow us to deliver allof the Health IT needs in the NHS as well as for our overseas customers. Thisapproach and our results this year have put us in an ideal position to growrapidly from a firm operational and product base. The enlarged Group has raised its profile in the national and internationalmarketplace and is now positioned with excellent human and financial resourcesto respond to the unprecedented opportunity for the provision of effectivehealth IT solutions. This year, several of our products were reviewed and approved by NHS Connectingfor Health ("CfH") meaning that Ascribe is delivering CfH compliant solutionssuch as "Choose and Book". We are therefore well positioned to continue todeliver locally to our customers and still contribute to national initiatives,irrespective of whether they are part of the National Programme for IT ("NPfIT")or not. A Successful Year Our strategy to combine organic growth and earnings-enhancing acquisitions hascontinued to fuel our growth this year. Turnover has increased by 85% to £9.9m(2005: £5.3m) whilst like-for-like organic sales growth across all of theGroup's divisions has grown by an average of 15%. Operating profit beforegoodwill amortisation and share based payments has increased 141% to £2.2m(2005: £0.9m), yielding a return on sales of 22% (2005: 17%). Adjusted basicearnings per share for the year increased to 1.73p from 0.93p in 2005. This year's record profitability has been fully converted into cash - operatingcash in 2006 was 112% of operating profit. This has been achieved through thevirtuous cycle of winning the majority of competitive tenders in our marketplace; the successful and timely implementation of new product installationsbacked by excellent project management; the effective support and maintenance toall existing and new customers; and good housekeeping. Finally the Group has completed three significant acquisitions: the JadeHealthcare division ("Jade"), Barwick Systems Ltd ("Barwick") and HE InformationSystems Ltd ("HEIS"). The Jade acquisition has increased Ascribe's market shareof the Mental Health and Community Care market and grown the critical mass ofthe Group's operation in Australasia where the Jade product is operated by 24healthcare organisations. Overseas sales are expected to account for 12-15% ofturnover in 2006/07. The Barwick and HEIS acquisitions enable Ascribe to offer acomplete administration and clinical systems to hospitals for the first time andare already yielding cross-selling opportunities that bodes well for the currentyear's trading. Our market growth The last year has been a testing time for Healthcare IT as market expectationscontinue to rise. I am therefore delighted by the Group's continuing success andbusiness growth. Not only have we acquired new technologies and synergiesthrough our successful acquisitions programme, we have also helped sites todevelop new solutions using our existing portfolio of products; e.g. 'electronicdischarge letters'. These discharge letters help maintain good levels ofcommunication between hospitals and patients' own General Practitioners andprovide a clear and simple example of using IT to share knowledge and improvecommunications about patients' healthcare. Connecting for Health ("CfH") and the National Programme for IT ("NPfIT") The core sales for Ascribe are outside the National Programme since we selldirectly to hospitals looking to find proven and available clinical anddepartmental solutions. While the National Programme's Spine and connectivity will help join up oursolutions which are Connecting for Health ("CfH") compliant, we are notdependant on this mechanism to deliver solutions that provide clinicians withreal benefits. With the delays and failures in the National programme we have updated our fiveyear plan and set our primary objective as being the "Health IT solution ofchoice in the English speaking world where healthcare is based on UK practices".We now have a product set and domain knowledge to deliver all the needs ofhealthcare IT across primary and secondary care. Our turnover only representsless than 2% of the National spend on IT outside the National Programme and weare now well positioned to deliver the whole functionality to a customer basespending over £1bn annually in England alone at the local level. We expectsignificant re-alignment of the programme in the coming year whilst we willcontinue to sell directly to customers in hospitals who need our solutions. Pharmacy Division The Pharmacy Division has had an excellent year. Once again the Divisionincreased its market share by winning new contracts including many won againstcompetition from the NPfIT offering. Ascribe's pharmacy software is installed inover 50% of UK hospitals and 41 hospitals in Australasia and SE Asia. In addition to the base functionality of our pharmacy software (stock control,dispensing and prescription labelling), our solutions now extend to electronicprescribing and medicines administration systems (providing solutions and druginformation support direct to doctors, pharmacists and nurses on the hospitalward) and also into the retail sector with Retail Pharmacies. Many of you will have read recent articles about the incidence of medicinesmisadventures in hospitals which may result in an extended stay in hospital and/or additional cost to the NHS, or even a patient's death. A published reportlast year stated that you are 6 times more likely to have a medicinesmisadventure than a road traffic accident in the UK. Ascribe's software isdesigned by healthcare professionals to support clinicians to provide bettercare by reducing the chance of errors. I am very pleased to report that after considerable development the Division hassuccessfully implemented a new web-based IT solution at Tameside GeneralHospital's Pharmacy Department, in Greater Manchester, which is being used tomanage their dispensary and stores processes. This will enable healthcarepersonnel to raise requests for prescriptions to the hospital pharmacy throughauthorised web-access points; the main benefits are considerable time-savingsand further reductions in errors. Mental Health and Community Care Division The Mental Health Division has enjoyed continued growth in its UK market overthe year. The acquisition of Jade's healthcare division in May has grownAscribe's market presence in the UK and significantly developed the Group'spresence in the Australasian market. Documenting patient care, recording the patient's legal status, his or hertherapy and drugs and the provision of electronic prescribing are all keyfeatures of Ascribe's software which have been accredited by NHS Connecting forHealth during the year. Many of our customers in the UK have acquired Choose and Book software enablingthem to communicate and share information across the NHS Spine. In addition ourcustomers have purchased software tools to facilitate web access to Ascribe'ssolutions; increasing access to this software is resulting in greater numbers ofhealthcare professionals being licensed to use the software concurrently. Primary and Unscheduled Care Division Ascribe's solutions in this division extend from Emergency Departments and MinorInjury Units to local GP systems. There is a move for GPs to work in largergroups to provide primary care centres or collaborative offerings to reduce thedependence on hospital services. This division is configured to support anddeliver to these customers. Community-based GP establishments may contain a minor injury unit, retailpharmacy, dental surgery and physiotherapist unit in addition to GP practices.Earlier this year the Group announced a sole-supplier contract to provide ITsolutions to Assura Medical Services Ltd, a wholly-owned subsidiary of theMedical Property Investment Fund (MPIF). The first such 'Super Surgery' isplanned to open in Liverpool this autumn with further sites across the UKfollowing thereafter. Ascribe has developed a flexible and fully integrated web-based healthcare ITsolution that will enable Assura to manage the clinical and administrativerequirements of modern National primary care services. Empowering bothclinicians and patients with relevant and accurate healthcare information iscore to the solution currently being delivered. Our systems for accident and emergency departments or community-based minorinjury units have achieved record sales this year as the Division has wonincreased market share in the UK and Ireland. The software is focused on optimising the throughput of patients to improvetheir care; it provides an on-screen display of all clinical data relating toeach patient including full identification information and all records inconnection with the patient's current and previous attendances. On-screen auditsof 'who' recorded information, and 'when', are also available; ranking ofpatients by clinical risk and on-screen warnings to manage targeted responsetimes are all features of the Group's Emergency Care software solution. Electronic Patient Record ("EPR") Division The HE Information Systems and Barwick Systems acquisitions comprise Ascribe'sElectronic Patient Record Division. Barwick and HEIS systems are used in overthirty hospitals in the UK. Ascribe's product provides a strategic offering inthe Patient Administration System "PAS" and secondary care electronic patientrecord markets. The management from both businesses have joined the Ascribeteam, allowing the Group to restructure its efforts in line with theopportunities offered by the delays in the National Programme. I am pleased to report that three Trusts have acquired new EPR systems fromAscribe since its acquisition of Barwick and HEIS. Follow-on sales to EPRcustomers of other Group solutions, such as A&E systems, have been an expectedbut pleasing feature of the early months of Group ownership. These acquisitions enable Ascribe to offer a complete administration andclinical information system to hospitals for the first time. Together withpre-existing systems from Ascribe, a total solution can be offered to meet allthe needs facing clinicians and managers today. Our People The success of our business is dependent upon the skills, hard work anddedication of our employees. I would therefore like to take this opportunity tothank all of our staff for their contribution to our success over the past year. Most of our staff have a stake in the value of our company, either directlythrough share ownership, or indirectly through share option schemes. During thecourse of the last year we instigated a new online benefits system to provideall of our staff with access to wider range of benefits tailored to theirindividual requirements. One of the impressive results of valuing our people so highly is the small staffturnover since the acquisitions. The key value of our business is the domainknowledge and experience of our staff. I am pleased to say we have preservedand developed this over the year. The goal congruence demonstrated by your Board and management team not onlycomes from their capability and experience but also from their values. This is adriver that will deliver sustainable and reproducible growth. Dividend The success we have achieved in the last year has enabled Ascribe to continueits progressive dividend policy that shares its trading success withshareholders whilst retaining cash to fund future acquisitions. The Board hasrecommended a final dividend of 0.13p per share (2005: 0.1p). Subject toshareholder approval, the final dividend will be paid on 8 November 2006 toshareholders on the register at the close of business on 20 October 2006. The Outlook Trading during the first few weeks of the current year has been positive and inline with expectations. Your Board believes that our business strategy combinedwith the skill and dedication of our workforce will lead to another successfulyear for the Group. Stephen CritchlowExecutive Chairman FINANCIAL REVIEW The year ended 30 June 2006 was one of significant progress for the AscribeGroup. During the year the Group completed three strategic acquisitions andenjoyed significant growth in both turnover and profitability. Trading results Turnover grew 85% to £9.9m for the year ended 30 June 2006 (2005: £5.3m) ofwhich acquisitions during the year contributed £0.9m (2005: £2.3m). The twoprincipal income streams of the Group are turnover generated from recurringmaintenance contracts and sales of new software solutions. For the year ended30 June 2006, income generated from maintenance contracts represented 62% oftotal turnover (2005: 61%). Following the Jade acquisition the proportion of theGroup's sales being generated outside the UK and Ireland grew in 2006 to 9.3%(2005: 8.0%) and is expected to grow further in 2007. Operating margins have improved as the Group has grown in size. The return onsales, before goodwill amortisation and share based payments, has increased from17% in 2005 to 22% in the current year. This growth in margin has been achievedas Ascribe continues to maintain and upgrade its existing software whilstinvesting in the development of new solutions targeted at the evolving ITrequirements of today's healthcare professionals. Research and developmentexpenditure for 2006 was £1.86m (2005: £1.0m). Operating profit before goodwill amortisation and share based payments was £2.2mcompared to £0.9m in the previous year. Adjusted EBITDA grew to £2.3m (2005:£1.1m). Operating profit after goodwill amortisation and share based paymentsgrew 127% to £1.4m (2005: £0.6m). Accounting Policies With the introduction of two new Financial Reporting Standards, we have restatedthe financial statements for the year ended 30 June 2005. These adjustments areas follows: • The introduction of Financial Reporting Standard 20, Share Based Payments states that the Profit and Loss Account should reflect the estimated cost of options granted over equity shares. Ascribe offered to employees a share option scheme and the charges in the periodrepresents the cost of these share options, calculated using the Black Scholesmodel. A charge of £0.16m has been taken to the profit and loss account for theyear ended 30 June 2006 (2005: £0.13m). A prior year adjustment has been made inrespect of the share based payment charge relating to the period before 1 July2005. • The introduction of Financial Reporting Standard 21, Events afterthe Balance Sheet Date, requires that the accounting treatment for the dividendof £107,000 that was proposed in June 2005, but paid after that date be changedand reported in the year ended 30 June 2006, the period in which it was paid. International Financial Reporting Standards The requirement to comply with International Financial Reporting Standards ("IFRS") is effective for accounting periods commencing on or after 1 January2007. Our December 2007 Interim Report and June 2008 Annual Report will bepresented using IFRS. With UK GAAP being more closely aligned to IFRS in respect of the accounting forshare based payments, the principal areas that will have an impact on the Groupresults relate to goodwill amortisation, the capitalisation of qualifyingdevelopment expenditure and financial instruments. Under IFRS the annual goodwill amortisation will cease and be replaced by a fullimpairment review at the balance sheet date with any impairment charge beingwritten off to the profit and loss account. IFRS also requires that under strictcircumstances certain development expenditure should be capitalised andamortised over its useful life. A project is ongoing to ensure a smooth transition to IFRS accounting. Interest Net interest receivable for the year was £7k (2005: £50k). This reductionreflects the commencement of interest charges on a medium term bank loan takenout by the Group to help fund the consideration for the three acquisitionscompleted in the second half of the year. The offsetting overdraft facilityagreed at the same time as the loan has not incurred any interest charges asyet. Goodwill A charge of £0.59m (2005: £0.15m) for the amortisation of goodwill has been madein the year. Amortisation represents a full year's charge for the acquisitionsmade during the year ended 30 June 2005 and a part-year charge for theacquisitions made during the financial year ended 30 June 2006. Goodwill arising on consolidation has continued to be amortised over a period of20 years. Goodwill purchased as part of the acquisition of the healthcaredivision of Jade Health is being amortised over a period of five years as thisis the period that the Board believe the Group will derive economic benefit. Taxation The tax charge for the year of £0.29m (2005: £0.15m) represents an effectiverate of tax of 13.4% (2005: 15.8%) on profit before tax, goodwill amortisationand share based payments. The effective rate of tax remains low due to theutilisation of brought forward losses. These tax losses are now fully utilisedand the underlying tax charge will grow in future periods subject to offset forthe amortisation charge relating to acquired goodwill. The Group continues to receive Research & Development tax credits in the UKarising out of our continued investment in the development of future softwaresolutions in the UK and overseas. Earnings per share Adjusted basic earnings per share ("EPS"), before goodwill amortisation andshare based payments, increased 86% to 1.73p (2005: 0.93p). Basic EPS rose 106%to 1.03p (2005: 0.5p). Funding and bank facilities The Group's net debt position at 30 June 2006 was £0.5m (2005: Net funds £2.7m).On 14 March 2006, the Group secured an overdraft facility and a fixed termdebt facility with its principal banker, the Royal Bank of Scotland plc (RBS)for the acquisition of Barwick. This facility was extended following theacquisitions of Jade and HEIS. The facilities include: • £4.1 million term loan facility• £1.6 million overdraft facility The interest charge for both the loan and overdraft facilities is 1.5% over theRBS base rate. Acquisitions During the year, Ascribe successfully completed three strategic and earningenhancing acquisitions. On 14 March 2006, Ascribe acquired 100% of the share capital of Barwick SystemsLimited for a consideration of £2.0m. The company based in Stockton on Tees is aprovider of hospital administration systems and services. The consideration wassatisfied in full with cash on completion. In the year ended 31 March 2005,Barwick made a profit before tax of £0.19m on turnover of £0.71m. On 10 May 2006, Ascribe, through its UK subsidiary Protechnic Exeter Limited,completed the acquisition of the healthcare division of the Jade SoftwareCorporation. The division, which has 24 customers in Australia, New Zealand andthe UK for its mental health solutions, was acquired for a consideration of£3.38m. An initial consideration of £2.73m was satisfied by £1.5m in cash and£1.23m by the issue of 3.8 million new ordinary shares in Ascribe plc. Furtherconsideration of up to £0.65m may be payable if the division meets certain salesand profit performance targets in the year to 30 April 2007. On 29 June 2006, Ascribe completed the acquisition of HE Information SystemsLimited for a consideration of £6.49m. The company based in Trafford, GreaterManchester is a provider of electronic patient record solutions to 21 hospitalsin the UK. The initial consideration of £3.99m was satisfied on completion by£2.99m cash and £1.0m by the issue of 3.33 million new ordinary shares inAscribe plc. Further consideration of up to £2.5m may be payable if certainfinancial targets are achieved in the period up to 29 June 2009. The furtherconsideration will be satisfied by £1.25m cash and £1.25m by the issue of newordinary shares in Ascribe plc. In the year ended 31 March 2005, HEIS made aprofit before tax of £0.52m on turnover of £2.5m. At completion the net assetsacquired were valued at £1.1m. The acquisition of Barwick Systems and HEIS gives us credibility in this marketwith both a customer base of 30 hospitals using our PAS systems as well asexcellent products. Since these companies joined the Group they have bothimplemented new PAS systems to sites unable to source their requirements fromthe NPfIT. The CAMIS product from HEIS has been kept up to date and is a leadingproduct for customers in the PAS market. Furthermore these companies have alwaysadopted an approach where they can integrate with clinical suppliers indelivering an electronic patient record (EPR). We have formed an EPR Division from the two acquired companies which willprovide a system capable of delivering a complete IT solution to our secondarycare customers by using our web based integrated clinical workstation as thefront end for healthcare professionals using the suite of products we now havefor clinical and departmental use. This approach means that hospitals do notneed to re-install systems to get a full "birth to death" record for patientcare. The Principals of HEIS have accepted an earn-out criteria target wherethey are targeted to deliver a complete patient record across a primary andsecondary care geography. Dividends In October 2005, a dividend of 0.1p per ordinary share was paid in respect ofthe year ended 30 June 2005. Following the introduction of FRS 21 this dividendhas now been accounted for in the year ended 30 June 2006. The Board hasrecommended to the Group's shareholders that a final dividend of 0.13 pence perordinary share be paid during the year ending 30 June 2007. Jeremy LeeGroup Finance Director CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2006 Continuing operations for the year ended 30 Restated June 2006 Year ended Note Acquisitions Total 30 June 2005 £'000 £'000 £'000 £'000 Turnover 934 8,947 9,881 5,347Cost of sales (17) (684) (701) (415)Gross profit 917 8,263 9,180 4,932Administrative expenses - (519) (6,511) (7,030) (4,040)otherOperating profit beforegoodwill amortisation andshare based payments 398 1,752 2,150 892Goodwill amortisation (170) (423) (593) (148)Share based payments - (162) (162) (130)Total administrative expenses (689) (7,096) (7,785) (4,318)Operating profit 228 1,167 1,395 614Bank interest received 48 50Interest payable (41) -Profit on ordinary activities 1,402 664before taxationTaxation on ordinary (290) (149)activitiesProfit on ordinary activitiesafter taxation 1,112 515 Basic earnings per share 2 1.03 0.50Fully diluted earnings per 2 0.99 0.49share All items dealt with in arriving at operating profit above relate to continuingoperations. CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR ENDED 30 JUNE 2006 Restated Year ended 30 June 2006 Year ended 30 June 2005 £'000 £'000Profit for the year 1,112 515Currency translation differences on retranslation ofsubsidiary undertakings (50) (3)Total gains & losses recognised 1,062 512Effects from prior year adjustments 108 -Total profits recognised since the last annual 1,170 512report CONSOLIDATED AND COMPANY BALANCE SHEETSAT 30 JUNE 2006 Group Company 2006 Restated 2006 Restated 2005 2005 Note £'000 £'000 £'000 £'000Fixed assetsIntangible fixed assets 18,961 8,312 - -Tangible fixed assets 294 215 83 -Investment in subsidiary undertakings - - 20,796 12,041 19,255 8,527 20,879 12,041Current assetsDebtors: amounts falling due within one 3 3,124 1,512 892 34yearDebtors: amounts falling due after more 3 - 12 2,000 -than one yearCash at bank and in hand 3,160 2,700 - 1,758 6,284 4,224 2,892 1,792Creditors: amounts falling due within 4 (11,330) (6,074) (7, 210) (4,195)one yearNet current liabilities (5,046) (1,850) (4,318) (2,403)Total assets less current liabilities 14,209 6,677 16,561 9,638Creditors: amounts falling due after 4 (3,041) (200) (3,041) (200)more than one yearNet assets 11,168 6,477 13,520 9,438Capital and reservesCalled up share capital 1,142 1,070 1,142 1,070Shares to be issued 2,155 855 2,155 855Share premium account 9,181 6,979 9,181 6,979Merger reserve 561 561 - -Profit & loss account (1,871) (2,988) 1,042 534Shareholders' funds 11,168 6,477 13,520 9,438 A S Critchlow J S W Lee CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2006 Year ended 30 June 2006 Year ended 30 June 2005 £'000 £'000Net cash inflow from operating 2,407 1,764activitiesReturn on investments and servicingof finance:Net interest received 7 50Taxation:Corporation tax paid (319) (4)Capital Expenditure:Purchase of tangible fixed assets (103) (39)Proceeds form the sale of fixed 9 4assets (94) (35)Acquisitions:Net cash acquired with subsidiaries 2,424 2,687Cash consideration and expenses (6,803) (3,933)Payment of deferred consideration (800) - (5,179) (1,246)Equity dividends paid (107) -Net cash (outflow) / inflow before (3,285) 529financingFinancing:Issue of ordinary share capital - 5,000Fundraising expenses 38 (705)Repayment of preference shares - (2,300)Preference shares redemption payment - (454)Loan advances 2,600 -Loan repayments (50) - 2,588 1,541(Decrease) / Increase in cash (697) 2,070 Reconciliation of operating profit to Year ended 30 June 2006 Year ended 30 June 2005net cash inflow from operatingactivities £'000 £'000Operating profit 1,395 614Depreciation of tangible fixed assets 118 185Goodwill amortisation 593 148Charge for share based payments 162 130(Profit) / loss on sale of tangible (9) 6fixed assetsIncrease in debtors (606) (206)Increase in creditors 754 887Net cash inflow from operating 2,407 1,764activities Reconciliation of net cash flow to Year ended 30 June 2006 Year ended 30 June 2005movement in net (debt) / funds Note £'000 £'000Decrease in cash (697) 2,070Cash inflow from increase in debt (2,550) 2,070Change in net debt arising from cash (3,247) 2,070flowExchange movement 49 (4)Opening net funds 2,679 613Closing net (debt) / funds 5 (519) 2,679 NOTESYEAR ENDED 30 JUNE 2006 1. The financial information set out herein in respect of the years ended30 June 2006 and 30 June 2005 does not constitute the company's financialstatements within the meaning of s240 Companies Act 1985 for those periods buthas been derived from the audited statutory accounts for those years and theunaudited financial information within the Chairman's Statement and operationalReview and the Financial Review in the 2006 accounts. The Group's statutoryaccounts for the year ended 30 June 2006 will be delivered to the Registrar ofCompanies shortly. The auditors have reported on those accounts; their reportwas unqualified and does not contain statements under s237(2) or (3) CompaniesAct 1985. 2. Earnings per share Basic earnings per share are calculated by dividing profit for the financialyear attributable to ordinary shareholders by the weighted average number ofshares in issue. Diluted earnings per share is the weighted average number ofordinary shares in issue adjusted for the potential ordinary share dilution fromshare options and shares to be issued. Adjusted basic earning per share wascalculated by adding back goodwill amortisation, share based payments and thedividends and appropriations relating to non-equity shares repaid at flotation,to more accurately reflect the Group's underlying earnings. 2006 2005 Restated Restated Restated Basic Adjusted Diluted Basic Adjusted Diluted £'000 £'000 £'000 £'000 £'000 £'000Profit after taxation 1,112 1,112 1,112 515 515 515Non-equity appropriations - - - (93) - (93)(pre-flotation)Share based payments - 162 - - 130 -Goodwill amortisation - 593 - - 148 -Profit attributable to ordinary 1,112 1,867 1,112 422 793 422shareholdersNumber of shares (thousands) 107,678 107,678 112,060 84,946 84,946 86,226Earnings per share (pence) 1.03 1.73 0.99 0.50 0.93 0.49Basic weighted average no. of shares - - 107,678 - - 84,946(thousands)Dilutions arising from share options - - 3,187 - - 1.045(thousands)Dilution from shares to be issued - - 1,195 - - 235(thousands)Diluted weighted average number of - - 112,060 - - 86,226shares 3. Debtors Group Company 2006 2005 2006 2005Amounts due within one year: £'000 £'000 £'000 £'000Trade debtors 2,309 999 - -Amounts due from subsidiary - - 787 13undertakingsAmounts recoverable on 87 143 - -contractsOther debtors 107 40 51 8Prepayments and accrued income 621 330 54 13 3,124 1,512 892 34Amounts due after more thanone year:Amounts due from subsidiary - - 2,000 -undertakingsAmounts recoverable on - 12 - -contracts - 12 2,000 - 4. Creditors: amounts falling due within one year Group Company 2006 Restated 2006 Restated 2005 2005 £'000 £'000 £'000 £'000Bank overdraft 1,129 21 1,129 -Bank loan 759 - 759 -Trade creditors 685 264 155 24Amounts owed to subsidiaryundertakings - - 3,846 3,086Corporation tax 510 209 - 2Other taxation and social 721 400 - -securityDeferred consideration 1,000 1,000 1,000 1,000Other creditors 53 16 10 -Deferred income 5,881 3,751 - -Accruals 592 413 311 83 11,330 6,074 7,210 4,195 Creditors: amounts falling due after more than one year Group Company 2006 2005 2006 2005 £'000 £'000 £'000 £'000Bank loans 1,791 - 1,791 -Deferred consideration 1,250 200 1,250 200 3,041 200 3,041 200 5. Analysis of changes in net debt 1 July 2005 Cash flow Non-cash movement 30 June 2006 £'000 £'000 £'000 £'000Bank overdraft (21) (1,108) - (1,129)Cash at bank 2,700 411 49 3,160 2,679 (697) 49 2,031Debt due within one - (759) - (759)yearDebt due after more - (1,791) - (1,791)than one year 2,679 (3,247) 49 (519) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ASP.L