27th Sep 2010 07:00
X-PHONICS PLC
("X-Phonics" or the "Company")
Interim Statement for the period ended 31st March 2010
CHAIRMAN'S STATEMENT
I present the financial statements for the six months to 31st March 2010.
Over the last six months we have continued to seek alternative opportunities that could make use of the company's infrastructure and listing on AIM in market sectors where there is scale, growth and a revenue model that is better suited to a public market.
Having looked at a number of possible opportunities I am pleased to be able to tell you that the Company announced on 3rd September proposals for a proposed investment through Verdes Management Limited ("VML") to raise £141,000 in aggregate (before expenses), Board changes and a strategic change in business direction for the Company conditional upon a share reorganisation and shareholders' approval in general meeting.
The investing policy of the Group (subject to shareholders' approval) will be to pursue a new strategic business direction as a turnaround advisory business offering services to stakeholders, as well as seeking investment opportunities in UK public companies in need of restructuring.
The net proceeds of the fundraising through VML will provide short term working capital to allow the Company to commence business, and progress the proposed recruitment of an established turnaround team (where discussions are currently at an advanced stage). It is intended that there will be a more substantial fundraising in due course.
I hope to be able to report progress upon this matter in due course.
Robin Davies
Chairman
27 September 2010
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Contacts: |
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X-Phonics plc |
www.xphonicsgroup.co.uk |
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Mike Hosie, Finance Director |
+44 (0) 208 987 0800 |
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WH Ireland Limited |
www.wh-ireland.co.uk |
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John Wakefield / Marc Davies |
+44 (0) 117 945 3470 |
X-Phonics plc
Consolidated Income Statement for six months ended 31st March 2010
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Note |
6 months ended 31 March 2010 |
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6 months ended 31 March 2009 |
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Year ended 30 September 2009 |
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(unaudited) |
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(unaudited) |
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(audited) |
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£ |
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£ |
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£ |
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Revenue |
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34,364 |
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67,712 |
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94,066 |
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Cost of Sales |
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- |
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(24,134) |
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(37,194) |
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Gross Profit |
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34,364 |
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43,578 |
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56,872 |
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Administrative expenses |
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(50,432) |
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(82,077) |
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(154,722) |
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Operating Loss |
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(16,068) |
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(38,499) |
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(97,850) |
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Finance income |
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- |
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1 |
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47 |
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Finance costs |
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(218) |
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(221) |
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(546) |
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Loss on ordinary activities before taxation |
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(16,286) |
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(38,719) |
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(98,349) |
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Income tax expense |
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- |
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- |
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- |
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Loss for the period |
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(16,286) |
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(38,719) |
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(98,349) |
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Loss per share attributable to the equity holders of the company: |
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Basic loss per ordinary share |
3. |
(0.03 pence) |
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(0.06 pence) |
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(0.15 pence) |
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Diluted loss per ordinary share |
3. |
(0.03 pence) |
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(0.06 pence) |
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(0.15 pence) |
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All of the activities of the group are classed as continuing
X-Phonics plc
Consolidated Balance Sheet as at 31st March 2010
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31 March 2010 |
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31 March 2009 |
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30 September 2009 |
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(unaudited) |
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(unaudited) |
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(audited) |
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£ |
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£ |
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£ |
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Assets |
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Non-current assets |
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Property, plant and equipment |
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8,158 |
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27,120 |
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17,460 |
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8,158 |
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27,120 |
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17,460 |
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Current assets |
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Trade and other receivables |
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54,381 |
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77,777 |
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49,328 |
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Cash and cash equivalents |
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2,451 |
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5,618 |
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7,457 |
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56,832 |
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83,395 |
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56,785 |
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Total assets |
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64,990 |
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110,515 |
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74,245 |
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Liabilities and Equity |
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Current liabilities |
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Trade and other payables |
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431,252 |
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399,077 |
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422,181 |
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Financial liabilities - bank overdraft |
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- |
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- |
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1,148 |
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Obligations under finance lease |
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4,091 |
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5,875 |
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4,983 |
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Total liabilities |
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435,343 |
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404,952 |
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428,312 |
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Equity |
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Called-up equity share capital |
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2,803,119 |
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2,803,119 |
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2,803,119 |
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Share premium account |
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743,474 |
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743,474 |
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743,474 |
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Merger reserve |
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(738,578) |
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(738,578) |
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(738,578) |
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Retained earnings |
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(3,178,368) |
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(3,102,452) |
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(3,162,082) |
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Total Equity |
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(370,353) |
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(294,437) |
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(354,067) |
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Total Liabilities and Equity |
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64,990 |
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110,515 |
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74,245 |
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X-Phonics plc
Consolidated Statement of Changes in Equity as at 31st March 2010
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Share Capital |
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Share Premium |
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Merger Reserve |
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Retained Earnings |
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Total Equity |
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£ |
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£ |
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£ |
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£ |
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£ |
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Balance at 1 October 2008 |
2,803,119 |
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743,474 |
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(738,578) |
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(3,063,733) |
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(255,718) |
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Loss for period |
- |
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- |
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- |
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(38,719) |
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(38,719) |
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At 31 March 2009 |
2,803,119 |
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743,474 |
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(738,578) |
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(3,102,452) |
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(294,437) |
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Loss for period |
- |
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- |
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- |
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(59,630) |
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(59,630) |
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At 30 September 2009 |
2,803,119 |
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743,474 |
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(738,578) |
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(3,162,082) |
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(354,067) |
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Loss for period |
- |
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- |
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- |
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(16,286) |
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(16,286) |
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At 31 March 2010 |
2,803,119 |
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743,474 |
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(738,578) |
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(3,178,368) |
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(370,353) |
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X-Phonics plc
Consolidated Cash Flow Statement for six months ended 31st March 2010
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6 months ended 31 March 2010 |
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6 months ended 31 March 2009 |
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Year ended 30 September 2009 |
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(unaudited) |
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(unaudited) |
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(audited) |
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£ |
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£ |
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£ |
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Net cash (outflow)/inflow from operating activities |
(2,749) |
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370 |
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2,233 |
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Investing activities |
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Interest paid |
(218) |
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(221) |
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(546) |
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Interest received |
- |
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1 |
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47 |
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Net cash flow before financing activities |
(2,967) |
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150 |
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1,734 |
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Financing activities |
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Capital element of finance leases repaid |
(891) |
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(891) |
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(1,784) |
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Net cash used in financing activities |
(891) |
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(891) |
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(1,784) |
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Net (decrease)/increase in cash and cash equivalents |
(3,858) |
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(741) |
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(50) |
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Opening net cash and cash equivalents |
6,309 |
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6,359 |
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6,359 |
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Closing net cash and cash equivalents |
2,451 |
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5,618 |
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6,309 |
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Reconciliation of operating loss to net cash outflow/inflow from operating activities |
6 months ended 31 March 2010 |
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6 months ended 31 March 2009 |
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Year ended 30 September 2009 |
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£ |
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£ |
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£ |
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Operating Loss |
(16,068) |
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(38,499) |
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(97,850) |
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Depreciation |
9,301 |
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9,661 |
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19,322 |
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Operating cash flows before movements in working capital |
(6,767) |
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(28,838) |
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(78,528) |
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Decrease/(increase) in receivables |
(5,053) |
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6,483 |
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33,675 |
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Increase/(decrease) in payables |
9,071 |
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22,725 |
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45,829 |
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Net movement in working capital |
4,018 |
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29,208 |
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79,504 |
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Net movement in cash flow |
(2,749) |
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370 |
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976 |
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Income taxes paid |
- |
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- |
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1,257 |
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Net cash (outflow)/inflow from operating activities |
(2,749) |
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370 |
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2,233 |
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Notes to the unaudited financial statements
2. Principal Accounting Policies
The principal accounting policies adopted are consistent with those of the annual financial statements for the year ended 30 September 2009 and are those expected to be applied for the year ended 30 September 2010.
3. Earnings per Share
The earnings per ordinary share have been calculated on the ordinary activities after taxation of £16,286 (31 March 2009 - £38,719, 30 September 2009 - £98,349) using the weighted average number of ordinary shares in issue during the peiod being 66,214,920 (31 March 2009 - 66,214,920, 30 September 2009 - 66,214,920). The weighted average number of diluted ordinary shares in issue during the period was 66,214,920 (31 March 2009 - 66,214,920, 30 September 2009 - 66,214,920).
Related Shares:
React Group