15th Sep 2009 07:00
NetDimensions (Holdings) Limited
("NetDimensions", the "Group" or the "Company")
Interim Results for the six months ended 30 June 2009
NetDimensions (AIM: NETD), a provider of performance, knowledge and learning management systems, announces its Interim Results for the six months ended 30 June 2009, a period in which the Company continued to deliver good growth.
Financial Highlights
Revenues up 3% to US$3.05 million (2008: US$2.94 million)
Pre-tax profit of US$0.41 million (2008: US$0.09 million) *
Cash flow from operating activities of US$1.33 million (2008: US$0.63 million)
Cash balance of US$6.82 million with no borrowings
Operational Highlights
Added 26 new clients with notable success in the EMEA region
Roger Durn, Chairman of NetDimensions commented:
"I am pleased to present another excellent set of results. We have delivered enhanced revenue growth and have added 26 new clients in the first half of the calendar year. We have continued to generate cash, increase revenues and invest for future growth while managing costs in a challenging economic environment. NetDimensions has traditionally performed better in the second half of the year and with continued growth in our target markets the Board is confident the Company will continue to expand its client base in the second half of 2009 as well as see further revenue and profit growth."
* Of which US$0.17 million derives from unrealized foreign exchange rate changes.
Enquiries:
|
NetDimensions |
Jay Shaw Jeffery Cheung Robert Torio |
+852 2122 4500 |
|
Arden Partners plc (Nomad & Broker) |
Fred Walsh Matthew Armitt |
+44 (0) 20 7398 1651 |
|
Walbrook PR Limited |
Ben Knowles Paul McManus |
+44 (0) 20 7933 8788 |
CHAIRMAN'S STATEMENT
Introduction
We are pleased to present our results for the six months to 30 June 2009. The Company made good progress in the first half of the year with sales increased by 3% to US$3.05 million (2008: US$2.94 million), which led to a profit of US$0.41 million for the period. Trading performance was driven by repeat business and sales to 26 new clients.
Financial Review
For the six months to 30 June 2009, total revenues increased by 3% to US$3.05 million. Hosting revenue increased 33% to US$1.30 million from US$0.98 million in the same period last year. In addition, we have been successful in growing our revenues in the EMEA region, an area in which we have placed great emphasis in our sales and marketing strategy. EMEA generated 42.6% of total revenues compared to 28.9% in the corresponding period in 2008.
The Company has continued to focus on cost management and the development of direct and channel sales capabilities.
The Group's cash position remains strong with cash generated from its operating activities of US$1.33 million during the first half of fiscal 2009. As at 30 June 2009, the Company had cash of US$6.82 million with no borrowings. Deferred revenue at 30 June 2009 increased 29% to US$2.0 million from US$1.5 million in the period last year.
The Board is currently not recommending the payment of a dividend.
Operations Review
In the six months under review, we added 26 new clients including: Mace Group; The Chartered Institute of Environmental Health; BMW South Africa; Florida Nursery, Growers & Landscape Association (FNGLA); Airports Company South Africa; Metropolitan Housing Partnership; SITA (Pty) Ltd; and CCS Coca Cola SABCO.
New client wins were generated through direct and partner-led sales channels throughout the world. Many of the new clients operate in highly regulated, compliance driven environments and aim to generate efficiencies through the application of NetDimensions products.
The Company continued to focus on strengthening our services and support capabilities in terms of adding more staff to our dedicated sales and professional services teams, and to our Philippines operations.
Current Trading and Outlook
In this uncertain global economic environment we expect that operating conditions will remain challenging for the rest of 2009. However, NetDimensions has a robust business model and as an expanding and cash generative business, the Company remains in a good position to grow. We have maintained a healthy cash level, with cash balances on 30 June 2009 of US$6.82 million held in a mix of US Dollars, Sterling and Euros (31 December 2008: US$5.34 million). This equates to approximately 16.5p in cash per share at 30 June 2009 currency rates (31 December 2008: 14.7p in cash per share).
Historically, the Group achieves the greater part of its annual revenue and profit in the second half of the year and we anticipate this trend to carry on. We believe our target markets will continue to show demand despite the current economic uncertainties, particularly in highly regulated and compliance driven industries and also in outwardly focused, extended enterprise deployments.
The six months under review were a successful period with the Company recording a good number of new customer wins and encouraging revenue growth. The Board is confident the Company is well positioned to continue to develop the NetDimensions platform.
Roger Durn
Chairman of the Board
15 September 2009
CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
|
Unaudited |
Unaudited |
Audited |
||||
|
6 months to |
6 months to |
12 months to |
||||
|
Note |
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
||||
|
Revenue |
3 |
3,046,251 |
2,943,398 |
6,352,524 |
||
|
Cost of sales |
(113,839) |
(160,739) |
(421,645) |
|||
|
Gross profit |
2,932,412 |
2,782,659 |
5,930,879 |
|||
|
Administrative expenses |
(2,621,777) |
(3,008,483) |
(5,837,302) |
|||
|
Operating profit/(loss) |
4 |
310,635 |
(225,824) |
93,577 |
||
|
Net finance gains/(costs) |
178,307 |
319,477 |
(507,795) |
|||
|
Share of loss of an associate |
6 |
(54,059) |
- |
(24,041) |
||
|
Share of loss of a jointly controlled entity |
7 |
(23,727) |
- |
(150,403) |
||
|
Profit/(loss) on ordinary activities before taxation |
411,156 |
93,653 |
(588,662) |
|||
|
Taxation |
|
- |
- |
- |
||
|
Profit/(loss) for the period |
411,156 |
93,653 |
(588,662) |
|||
|
Attributable to: |
||||||
|
Equity shareholders of the Company |
411,156 |
93,653 |
(588,662) |
|||
|
Earnings/(loss) per share: |
||||||
|
Basic |
5 |
US$0.016 |
US$0.004 |
US$(0.024) |
||
|
Diluted |
5 |
US$0.016 |
US$0.004 |
US$(0.023) |
||
The notes form an integral part of these condensed consolidated interim financial statements.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2009
|
Unaudited |
Unaudited |
Audited |
||||
|
6 months to |
6 months to |
12 months to |
||||
|
Note |
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
||||
|
Profit/(loss) for the period |
411,156 |
93,653 |
(588,662) |
|||
|
Other comprehensive income: |
||||||
|
Exchange differences on translation of foreign operations |
(7) |
- |
37,702 |
|||
|
Share of other comprehensive income of an associate |
- |
- |
316 |
|||
|
Other comprehensive income for the year |
(7) |
- |
38,018 |
|||
|
Total comprehensive income for the year |
411,149 |
93,653 |
(550,644) |
|||
|
Total comprehensive income |
||||||
|
attributable to: |
||||||
|
Equity shareholders of the Company |
411,149 |
93,653 |
(550,644) |
|||
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2009
|
Unaudited |
Unaudited |
Audited |
||||
|
Note |
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
||||
|
ASSETS |
||||||
|
Non-current assets |
||||||
|
Property, plant and equipment |
113,049 |
166,520 |
144,394 |
|||
|
Intangible assets |
35,119 |
68,459 |
49,790 |
|||
|
Interest in an associate |
6 |
172,216 |
- |
226,275 |
||
|
Interest in a jointly controlled entity |
7 |
25,870 |
199,992 |
49,597 |
||
|
346,254 |
434,971 |
470,056 |
||||
|
Current assets |
||||||
|
Inventories |
500 |
29,386 |
- |
|||
|
Trade and other receivables |
1,468,571 |
1,682,509 |
3,254,905 |
|||
|
Cash and cash equivalents |
6,816,944 |
6,401,855 |
5,338,405 |
|||
|
8,286,015 |
8,113,750 |
8,593,310 |
||||
|
TOTAL ASSETS |
8,632,269 |
8,548,721 |
9,063,366 |
|||
|
EQUITY AND LIABILITIES |
||||||
|
Equity attributable to equity holders of the Company |
||||||
|
Share capital |
8 |
24,939 |
24,889 |
24,914 |
||
|
Share premium |
11,116,871 |
11,116,871 |
11,116,871 |
|||
|
Foreign currency translation reserve |
32,800 |
(5,211) |
32,807 |
|||
|
Accumulated losses |
(5,008,002) |
(4,743,098) |
(5,422,271) |
|||
|
Total equity |
6,166,608 |
6,393,451 |
5,752,321 |
|||
|
Non-current liabilities |
||||||
|
Obligations under finance leases |
342 |
1,699 |
1,026 |
|||
|
Current liabilities |
||||||
|
Trade and other payables |
2,463,951 |
2,152,212 |
3,308,651 |
|||
|
Obligations under finance leases |
1,368 |
1,359 |
1,368 |
|||
|
2,465,319 |
2,153,571 |
3,310,019 |
||||
|
|
|
|||||
|
Total liabilities |
2,465,661 |
2,155,270 |
3,311,045 |
|||
|
TOTAL EQUITY AND LIABILITIES |
8,632,269 |
8,548,721 |
9,063,366 |
|||
The notes form an integral part of these condensed consolidated interim financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2009 (UNAUDITED)
|
|
|
|
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
currency
|
|
|
|
|
|
|
Share
|
|
Share
|
|
translation
|
|
Accumulated
|
|
|
|
|
capital
|
|
premium
|
|
reserve
|
|
losses
|
|
Total
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2009
|
24,914
|
|
11,116,871
|
|
32,807
|
|
(5,422,271)
|
|
5,752,321
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period
|
-
|
|
-
|
|
-
|
|
411,156
|
|
411,156
|
|
Other comprehensive
|
|
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
|
|
|
Currency translation differences
|
-
|
|
-
|
|
(7)
|
|
-
|
|
(7)
|
|
Total comprehensive income
|
-
|
|
-
|
|
(7)
|
|
411,156
|
|
411,149
|
|
|
|
|
|
|
|
|
|
|
|
|
Issue of shares
|
25
|
|
-
|
|
-
|
|
-
|
|
25
|
|
Equity settled share-based payments
|
-
|
|
-
|
|
-
|
|
3,113
|
|
3,113
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2009
|
24,939
|
|
11,116,871
|
|
32,800
|
|
(5,008,002)
|
|
6,166,608
|
FOR THE SIX MONTHS ENDED 30 JUNE 2008 (UNAUDITED)
|
|
|
|
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
currency
|
|
|
|
|
|
|
Share
|
|
Share
|
|
translation
|
|
Accumulated
|
|
|
|
|
capital
|
|
premium
|
|
reserve
|
|
losses
|
|
Total
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2008
|
24,864
|
|
11,116,871
|
|
(5,211)
|
|
(4,872,470)
|
|
6,264,054
|
|
Profit for the period
|
-
|
|
-
|
|
-
|
|
93,653
|
|
93,653
|
|
Issue of shares
|
25
|
|
-
|
|
-
|
|
-
|
|
25
|
|
Equity settled share-based payments
|
-
|
|
-
|
|
-
|
|
35,719
|
|
35,719
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2008
|
24,889
|
|
11,116,871
|
|
(5,211)
|
|
(4,743,098)
|
|
6,393,451
|
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2008 (AUDITED)
|
Foreign |
|||||||||
|
currency |
|||||||||
|
Share |
Share |
translation |
Accumulated |
||||||
|
capital |
premium |
reserve |
losses |
Total |
|||||
|
US$ |
US$ |
US$ |
US$ |
US$ |
|||||
|
At 1 January 2008 |
24,864 |
11,116,871 |
(5,211) |
(4,872,470) |
6,264,054 |
||||
|
Loss for the year |
- |
- |
- |
(588,662) |
(588,662) |
||||
|
Other comprehensive income: |
|||||||||
|
Currency translation differences |
- |
- |
37,702 |
- |
37,702 |
||||
|
Share of reserve movements of an associate |
- |
- |
316 |
- |
316 |
||||
|
Total comprehensive income |
- |
- |
38,018 |
(588,662) |
(550,644) |
||||
|
Issue of shares |
50 |
- |
- |
- |
50 |
||||
|
Equity settled share-based payments |
- |
- |
- |
38,861 |
38,861 |
||||
|
At 31 December 2008 |
24,914 |
11,116,871 |
32,807 |
(5,422,271) |
5,752,321 |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2009
|
Unaudited |
Unaudited |
Audited |
|||||
|
6 months to |
6 months to |
12 months to |
|||||
|
Note |
30.6.2009 |
30.6.2008 |
31.12.2008 |
||||
|
US$ |
US$ |
US$ |
|||||
|
Cash flows from operating activities |
9 |
1,331,129 |
630,282 |
648,844 |
|||
|
Cash flows from in investing activities |
|||||||
|
Purchase of property, plant and equipment |
(27,431) |
(17,364) |
(43,495) |
||||
|
Purchase of intangible assets |
(9,120) |
(42,759) |
(56,828) |
||||
|
Interest received |
5,327 |
112,311 |
199,571 |
||||
|
Investment in an associate |
- |
- |
(250,000) |
||||
|
Investment in a jointly controlled entity |
- |
(199,992) |
(200,000) |
||||
|
Net cash used in investing activities |
(31,224) |
(147,804) |
(350,752) |
||||
|
Cash flows from financing activities |
|||||||
|
Finance lease charges |
(168) |
(167) |
(335) |
||||
|
Repayments of borrowings and finance leases |
(684) |
(679) |
(1,368) |
||||
|
Net cash used in financing activities |
(852) |
(846) |
(1,703) |
||||
|
Net increase in cash and cash equivalents |
1,299,053 |
481,632 |
296,389 |
||||
|
Cash and cash equivalents at beginning of the period |
5,338,405 |
5,711,745 |
5,711,745 |
||||
|
Effect of foreign exchange rate changes, net |
179,486 |
208,478 |
(669,729) |
||||
|
Cash and cash equivalents at end of the period |
6,816,944 |
6,401,855 |
5,338,405 |
||||
The notes form an integral part of these condensed consolidated interim financial statements.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. GENERAL INFORMATION
The Company was incorporated in the Cayman Islands as a limited liability company under the Companies Law (2000) Revision on 10 July 2000. The registered office of the Company is located at P.O. Box 309, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands, British West Indies. Its principal place of business is located at 17/F., Siu On Centre, 188 Lockhart Road, Wan Chai, Hong Kong.
The principal activities of the Company and its subsidiaries (hereinafter collectively referred to as the "Group") are licensing of computer software and the provision of related services. The principal activity of the Company is investment holding.
The Company's shares were admitted to trading on the Alternative Investment Market ("AIM") of the London Stock Exchange. These condensed consolidated interim financial statements are presented in United States Dollars, unless otherwise stated, and were approved for issue by the Board of Directors on 15 September 2009.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
The Company has a financial year end date of 31 December. These condensed consolidated interim financial statements for the six months ended 30 June 2009 have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting". These condensed consolidated interim financial statements should be read in conjunction with the annual financial statements of the Group for the year ended 31 December 2008.
(b) Significant accounting policies
The condensed consolidated interim financial statements have been prepared under the historical cost convention except for certain financial assets and liabilities which are stated at fair values.
The accounting policies and methods of computation used in the preparation of these condensed consolidated interim financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2008 except for the adoption of standards, amendments and interpretations issued by the International Accounting Standards Board for annual periods beginning 1 January 2009 as described below.
IFRS 8 Operating Segments
This Standard requires disclosure of information about the Group's operating segments and replaces the requirement to determine primary (business) and secondary (geographical) reporting segments of the Group. Adoption of this Standard did not have any effect on the financial position or performance of the Group. The Group determined that the operating segments were the same as the business segments previously identified under IAS 14 Segment Reporting.
IAS 1 Revised Presentation of Financial Statements
The revised Standard has introduced a number of terminology changes (including revised titles for the condensed financial statements) and has resulted in a number of changes in presentation and disclosure. However, the revised Standard has had no impact on the reported results or financial position of the Group.
3. SEGMENT INFORMATION
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 six months ended 30 June 2009:
|
North |
Rest of the |
||||||
|
America |
EMEA |
World |
Total |
||||
|
US$ |
US$ |
US$ |
US$ |
||||
|
Revenue from external customers |
1,246,383 |
1,298,845 |
501,023 |
3,046,251 |
|||
|
Operating profit |
127,050 |
132,330 |
51,255 |
310,635 |
|||
|
Net finance gains |
178,307 |
||||||
|
Share of loss of an associate |
(54,059) |
||||||
|
Share of loss of a jointly controlled entity |
(23,727) |
||||||
|
Profit before taxation |
411,156 |
||||||
|
Taxation |
- |
||||||
|
Profit for the period |
411,156 |
|
Segment assets |
77,626 |
10,170 |
8,544,473 |
8,632,269 |
|||
|
Segment liabilities |
43,659 |
- |
2,422,002 |
2,465,661 |
Segmental information for the six months ended 30 June 2008:
|
North |
Rest of the |
||||||
|
America |
EMEA |
World |
Total |
||||
|
US$ |
US$ |
US$ |
US$ |
||||
|
Revenue from external customers |
1,612,772 |
851,524 |
479,102 |
2,943,398 |
|||
|
Operating loss |
(123,752) |
(65,263) |
(36,809) |
(225,824) |
|||
|
Net finance gains |
319,477 |
||||||
|
Profit before taxation |
93,653 |
||||||
|
Taxation |
- |
||||||
|
Profit for the period |
93,653 |
|
Segment assets |
150,127 |
11,474 |
8,387,120 |
8,548,721 |
|||
|
Segment liabilities |
91,174 |
- |
2,064,096 |
2,155,270 |
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 |
|||
|
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) |
|
Segment assets |
159,516 |
7,564 |
8,896,286 |
9,063,366 |
|||
|
Segment liabilities |
87,520 |
- |
3,223,525 |
3,311,045 |
4. OPERATING PROFIT/(LOSS)
Operating profit/(loss) is arrived after charging/(crediting):-
|
Unaudited |
Unaudited |
Audited |
|||
|
6 months to |
6 months to |
12 months to |
|||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
|||
|
Research and development |
|||||
|
- current period expenditure |
810,678 |
534,466 |
1,388,717 |
||
|
Bad debts |
- |
22,199 |
- |
||
|
Foreign exchange (gain)/loss |
(173,148) |
(207,333) |
707,031 |
5. EARNINGS/(LOSS) PER SHARE
The calculation of the basic and diluted earnings/(loss) per share is based on the following data:
|
Unaudited |
Unaudited |
Audited |
|||
|
6 months to |
6 months to |
12 months to |
|||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
|||
|
Earnings |
|||||
|
Earnings for the purpose of basic earnings/(loss) per share being net profit/(loss) attributable to equity shareholders of the parent |
411,156 |
93,653 |
(588,662) |
||
|
Earnings/(loss) for the purpose of diluted earnings/(loss) per share |
411,156 |
93,653 |
(588,662) |
||
|
Number of shares |
|||||
|
Weighted average number of shares for the purpose of basic earnings/(loss) per share |
24,937,609 |
24,881,950 |
24,885,980 |
||
|
Effect of dilutive potential shares: |
|||||
|
Share options |
1,226,500 |
1,250,659 |
1,239,475 |
||
|
Weighted average number of shares for the purpose of dilutive earnings/(loss) per share |
26,164,109 |
26,132,609 |
26,125,455 |
||
|
Earnings/(loss) per share |
|||||
|
Basic |
US$0.016 |
US$0.004 |
US$(0.024) |
||
|
Diluted |
US$0.016 |
US$0.004 |
US$(0.023) |
6. INTEREST IN AN ASSOCIATE
|
Unaudited |
Unaudited |
Audited |
|||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
|||
|
Share of net assets |
47,216 |
- |
101,275 |
||
|
Goodwill on acquisition |
125,000 |
- |
125,000 |
||
|
172,216 |
- |
226,275 |
Particulars of the associate as at 30 June 2009 are as follows: -
|
Name of entity |
Place of incorporation and operation |
Percentage of registered capital held |
Principal activities |
|||
|
Peak Pacific Limited |
Hong Kong |
25% |
Provision and development of professional eLearning products, solutions and services. |
The summarised financial information in respect of the Group's associate is set out below:
|
Unaudited |
Unaudited |
Audited |
|||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
|||
|
Total assets |
205,483 |
- |
439,643 |
||
|
Total liabilities |
(16,620) |
- |
(34,542) |
||
|
Net assets |
188,863 |
- |
405,101 |
||
|
6 months to |
12 months to |
||||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
|||
|
Revenue |
395,873 |
- |
174,750 |
||
|
Loss for the period |
(216,237) |
- |
(96,162) |
||
|
Group's share of loss of an associate for the period |
(54,059) |
- |
(24,041) |
||
7. INTEREST IN A JOINTLY CONTROLLED ENTITY
|
Unaudited |
Unaudited |
Audited |
|||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
|||
|
Share of net assets |
25,870 |
199,992 |
49,597 |
Particulars of the jointly controlled entity as at 30 June 2009 are as follows: -
|
Name of entity |
Place of incorporation and operation |
Percentage of registered capital held |
Principal activities |
|||
|
Great (Bermuda) Island Scientific Limited |
Bermuda / Hong Kong |
50% |
Licensing of computer software and provision of related services. |
A summary of the financial position on the jointly controlled entity with the Company's effective interests is as follows:
|
Unaudited |
Unaudited |
Audited |
|||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
|||
|
Non-current assets |
843 |
- |
843 |
||
|
Current assets |
25,027 |
199,992 |
48,754 |
||
|
Non-current liabilities |
- |
- |
- |
||
|
Current liabilities |
- |
- |
- |
||
|
Net assets |
25,870 |
199,992 |
49,597 |
||
|
6 months to |
12 months to |
||||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
|||
|
Revenue |
4,607 |
- |
7,170 |
||
|
Expenses |
(28,334) |
- |
(157,573) |
||
|
Loss for the period |
(23,727) |
- |
(150,403) |
||
8. SHARE CAPITAL
|
Number |
|||
|
of shares |
Amount |
||
|
US$ |
|||
|
Authorised share capital: |
|||
|
Ordinary shares of US$0.001 each |
100,000,000 |
100,000 |
|
|
Issued and fully paid: |
|
||
|
Ordinary shares of US$0.001 each |
24,938,576 |
24,939 |
|
The movement of issued share capital is as follows:
|
Number |
|||
|
of shares |
Amount |
||
|
US$ |
|||
|
At 1 January 2009 |
24,913,576 |
24,914 |
|
|
Shares issued during the period |
25,000 |
25 |
|
|
At 30 June 2009 |
24,938,576 |
24,939 |
|
(a) Share capital
Pursuant to the terms and conditions of the letter of appointment of the non-executive directors of the Company, on 8 January 2009, an aggregate of 25,000 ordinary shares of the Company was allotted to three non-executive directors of the Company.
(b) Share options scheme
Details of movement of the share options are as follows:
|
Unaudited |
Unaudited |
Audited |
||||||
|
6 months to |
6 months to |
12 months to |
||||||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
||||||
|
Weighted |
Weighted |
Weighted |
||||||
|
Number of |
average |
Number of |
average |
Number of |
average |
|||
|
share |
exercise |
share |
exercise |
share |
exercise |
|||
|
options |
price |
options |
price |
options |
price |
|||
|
US$ |
US$ |
US$ |
||||||
|
Outstanding at 1 January |
1,226,500 |
0.268 |
1,260,500 |
0.269 |
1,260,500 |
0.269 |
||
|
Forfeited during the period |
- |
- |
(23,000) |
0.300 |
(34,000) |
0.300 |
||
|
Outstanding at 30 June/31 December |
1,226,500 |
0.268 |
1,237,500 |
0.264 |
1,226,500 |
0.268 |
||
|
Exercisable at 30 June/31 December |
1,067,328 |
0.264 |
906,826 |
0.257 |
1,062,328 |
0.264 |
||
9. CASH FLOWS FROM OPERATING ACTIVITIES
|
Unaudited |
Unaudited |
Audited |
|||
|
6 months to |
6 months to |
12 months to |
|||
|
30.6.2009 |
30.6.2008 |
31.12.2008 |
|||
|
US$ |
US$ |
US$ |
|||
|
Profit/(loss) before taxation |
411,156 |
93,653 |
(588,662) |
||
|
Equity settled share-based payments |
3,138 |
35,744 |
38,911 |
||
|
Depreciation |
53,145 |
52,679 |
101,733 |
||
|
Amortisation |
22,553 |
14,803 |
47,803 |
||
|
Loss on disposal of property, plant and equipment |
524 |
- |
511 |
||
|
Finance lease charges |
168 |
167 |
335 |
||
|
Interest income |
(5,327) |
(112,311) |
(199,571) |
||
|
Share of loss of an associate |
54,059 |
- |
24,041 |
||
|
Share of loss of a jointly controlled entity |
23,727 |
- |
150,403 |
||
|
Unrealised exchange (gain)/loss |
(173,148) |
(207,333) |
707,031 |
||
|
Operating cash flows before changes in working capital |
389,995 |
(122,598) |
282,535 |
||
|
(Increase)/decrease in inventories |
(500) |
(18,802) |
10,584 |
||
|
Decrease/(increase) in receivables |
1,786,334 |
1,055,028 |
(517,368) |
||
|
(Decrease)/increase in payables |
(844,700) |
(283,346) |
873,093 |
||
|
Cash flows generated from operating activities |
1,331,129 |
630,282 |
648,844 |
Related Shares:
NETD.L