19th Jan 2009 07:00
19 January 2009
SPIRITEL PLC
("SpiriTel", "the Company" or "the Group")
Interim Results for the six months ended 31 October 2008
SpiriTel (AIM: STP), the business communications service provider, today announces interim results for the six months to 31 October 2008.
Highlights
Financial
Turnover up 62% to £11.1 million (2007: £6.8 million)
Gross profit up 64% to £4.2 million (2007: £2.5 million)
Underlying EBITDA* up 270% to £0.87 million (2007: £0.23 million)
Pre tax loss £1.7 million (2007: £2.3 million), after non-cash finance costs** of £2.1m
Balance sheet restructured and strengthened
Penta Capital debt restructured saving £0.8 million of annual interest charges
Penta Capital converted £3.2m of debt into ordinary shares
Increased bank facility for acquisitions but bank debt remains low at £2.6m, repayable over five years
Operational
Two earnings enhancing acquisitions were integrated, expanding product set and customer numbers
WN1, a mobile reseller (acquired April 2008),
ED Communications, a network services provider (acquired August 2008)
Customer base increased to 2,200 business customers (2007: 920)
Organic sales growth of 30% excluding acquisitions
Cross sales contracts of £1.4m won during the period
Three year managed services contract awarded by Young and Co.'s Brewery
Significant progress in development of converged mobile products, mobile applications and hosted VoIP and WiFi services
Awards won during the period include Converged Solution of the Year (National Comms Business Awards); VoIP Solution of the Year (Federations of Communication Service Providers Awards); Best Newcomer (International Directories Awards) for the 118 918 service managed on behalf of Virgin Mobile.
* Before restructuring and acquisition costs and charge for share based payments
** Non-cash finance costs comprise charges required under IFRS on the modification of the terms of the Penta loans and preference shares
Commenting on the results, Alastair Mills, Chief Executive Officer of SpiriTel, said:
"I am pleased to announce a strong set of results for the Group. The progress that we have made operationally and financially demonstrates a successful execution of the Group's stated strategy of acquiring and rapidly integrating complementary businesses and driving organic growth from the cross-selling opportunities that are presented by a growing customer base. We have now delivered four consecutive periods of growth in underlying EBITDA"
Copies of these results are available on the Company's website: www.spiritelplc.com
For further information please contact:
|
SpiriTel plc |
Tavistock Communications |
FinnCap |
|
Alastair Mills |
Simon Hudson |
Geoff Nash |
|
Chief Executive |
Duncan McCormick |
|
|
Tel: 020 7160 0100 |
Tel: 020 7920 3150 |
Tel: 020 7600 1658 |
Review by the Chief Executive Officer, Alastair Mills
Introduction
I am pleased to announce another encouraging set of results, achieved in an increasingly challenging economic environment. We have continued the successful execution of our Acquire, Integrate and Grow strategy which has resulted in considerable improvement in both revenue and earnings. During the period we completed the rapid integration of two earnings-enhancing acquisitions and generated higher than expected organic sales growth of 30%. We have now delivered four successive half-year periods of growth in underlying EBITDA.
Our focus on the cross-selling of our integrated range of voice and data services to existing customers is bearing fruit with several significant wins during the period and since the half year end. The opportunity to increase revenues further from existing customers is substantial. We offer a full range of traditional and converged communications services to business customers who are increasingly looking for opportunities to reduce costs and improve efficiencies. Following the successful integration of six acquisitions in less than two years, we have a significant opportunity to increase revenues from our growing customer base, many of whom currently take only one or two products from SpiriTel.
Results
During the period we have delivered improvements to all of our key trading indicators as well as strengthening our balance sheet. Highlights include:
Turnover up 62% to £11.1 million (2007: £6.8 million)
Gross profit up 64% to £4.2 million (2007: £2.5 million)
Underlying EBITDA* up 270% to £0.87 million (2007: £0.23 million)
£3.2m of debt converted into ordinary shares
Balance sheet strengthened with Penta Capital debt restructure, saving £0.8 million annual interest charge
Increased banking facility agreed
The 62% growth in revenue was delivered by a combination of acquisitions and organic growth within both Divisions. This growth, and our successful execution of a change in product mix towards the higher margin value added services of SpiriTel Business, led to the 64% growth in gross profit to £4.2m and an increase in gross profit as a percentage of revenue from 37% to 38%. Consequently we are able to report a 270% increase in underlying EBITDA to £0.87m and a significant improvement in underlying EBITDA margins to 7.9% from 3.4% in the first half of 2007. The improvement in the underlying EBITDA margin is a result of our successful acquisition and integration model and leveraging our operational gearing.
Performance of both acquisitions (WN1 and ED Communications) has, to date, exceeded management expectations. The results for the first half reflect only a partial contribution from ED Communications, which was acquired in August 2008.
In May 2008, we completed the restructuring of the Penta Capital debt. This resulted in a waiver of £0.5m of accrued finance costs and is now saving the Company annual interest charges of £0.8m. During the period Penta converted £3.2m of debt into ordinary shares, of which £0.6m was at a 50% premium to the share price at the date of conversion. This represented a significant vote of confidence by Penta in the performance of and prospects for the Group. As at 31 October 2008, the Group had £7.85 million of convertible debt from Penta with a zero interest coupon and conversion rights at no less than 1.5p.
During August, we received further support from Clydesdale Bank who provided a £1.9m facility for the acquisition of ED Communications. As at 31 October 2008, bank debt was £2.6m, repayable over five years. Our policy is to maintain bank debt at conservative levels.
The Group's net cash outflow from operations decreased from £1.6m to £0.6m. During the twelve month period to 31 October 2008 the Group generated EBITDA of £0.9m and net cash inflow from operating activities of £1.8m.
SpiriTel Business
During the period under review, Business Division revenues grew by 75% to £5.0m (2007: £2.9m). This rapid improvement was delivered by a combination of acquisitions and organic growth. The results for the period include contributions from two earnings enhancing acquisitions that were completed since the announcement of last year's interim results. The first of these acquisitions, during April 2008, was WN1 which added mobile voice and data to our product portfolio, followed by ED Communications, a network services provider, in August 2008. Both were integrated into our existing Wigan operations, and rebranded as SpiriTel Mobile and SpiriTel Networks (London) respectively, within eight weeks of acquisition. The extended range of services is now available to all SpiriTel customers.
Organic growth is being delivered by successful execution of our strategic focus on cross-selling which resulted in the winning of contracts worth £1.4m during the first half of the year. Since the period end we have had further cross-selling successes, including the recently announced £0.6m contract with one of our global hotel customers. The majority of the contracts were won towards the end of the period and as a result, less than £80,000 of the revenue was booked during the first half. The cross-selling successes were achieved from less than 1% of our customer base and our recent assessment that the total telecommunications spend of our customers exceeds £80m indicates the significant upside opportunity for SpiriTel from existing customers. Many of these customers are increasingly looking to deliver savings by deploying converged services and consolidating their supplier base. Successful penetration of this total customer spend is a key target of the management team.
The Group's most significant cross-selling success during the period was the three year contract with Young's. This managed services contract, won in October, is set to exceed £1million in value and demonstrates our ability to capture significant contract wins in the fast growing area of hosted VoIP telephony and WiFi. A key attraction of our proposition to Young's is that they were able to avoid significant investment in their ICT infrastructure by choosing a managed service solution with cost being spread over the contract life. Our experience is that this "capex light" model is becoming extremely attractive to end users.
In our Mobile product line, SpiriTel has collaborated with Blackberry manufacturer Research in Motion (RIM) to promote software that interfaces with IP-PBX's and Blackberry Enterprise Servers, allowing PBX functionality to be extended to a mobile handset. More than 30% of our mobile revenues are now generated from converged devices such as Blackberrys. The importance of mobile applications as a revenue stream is also increasing and an eightfold growth means that mobile applications now represent almost 10% of revenues from our Mobile product line.
SpiriTel Technologies
SpiriTel Technologies continues to provide the infrastructure and support to enable the Business Division to offer its range of converged, IP based managed services to corporate customers. Our capabilities in hosted voice and data services differentiate us from many of our competitors who continue to limit their activity to reselling legacy systems and services. During the period, the Technologies Division generated strong earnings from wholesale voice services and, encouragingly, we have added additional major international carrier customers.
Whilst continually evaluating the commercial viability of our product road map and drawing heavily on the R&D spend of our major global partners, including Mitel, O2 and RIM, we have enhanced our converged product set. During October we successfully trialled our hosted VoIP service over wide range wireless internet connectivity (WIMAX). Research indicates that hosted VoIP services continue to be one of the fastest growing revenue streams in telecoms. Our ability to provide hosted VoIP over WIMAX allows SpiriTel Business to offer its customers higher levels of bandwidth using a fully resilient connection.
Awards
We are delighted that SpiriTel continues to be recognised for its achievements and for the quality and pioneering nature of the integrated communications services it delivers to a broad range of business customers. Awards received during the period include:
Converged Solution of the Year - Winner, National Comms Business Awards
VoIP Solution of the Year - Winner, Federations of Communication Service Providers Awards
Best Newcomer - Winner, International Directories Awards
In addition, CEO Alastair Mills was a finalist at the Ernst & Young Entrepreneur of the Year Awards and CFO Ronnie Smith was a finalist for FD of a Growing Company at the Accountancy Age Awards.
Outlook
Management will continue to execute its Acquire, Integrate and Grow strategy to build upon its track record of adding earnings enhancing acquisitions. This will be complemented by organic growth from cross-selling activity, where we made significant progress during the period under review. The Group's increased banking facility, provided in turbulent economic times, serves as a strong endorsement of our strategy and financial results. Our consistent growth in earnings continues to improve the Group's financial stability and we operate with a relatively low level of senior debt relative to earnings. We will also continue to improve earnings visability with a migration from one off capital sales towards managed services and longer term contracts.
Our increasing level of contracted revenues and the growth of our order pipeline underpin our expectations for the year and we look forward to continuing the delivery of value to shareholders.
The economic outlook for 2009 remains volatile and challenging for all businesses. However, following a significant restructuring of the business over the last two years, we have established a strong platform for sustained future growth by selling an expanded product portfolio into a growing customer base. SpiriTel provides business critical services to its customers and our converged product offering, often including an element of network rationalisation, offers customers an opportunity to increase efficiency and reduce costs. Therefore, we are confident that we are well placed to meet the economic challenges ahead and the management team is hopeful that our recent trend of growth will continue.
Alastair Mills
Chief Executive
19 January 2009
SPIRITEL PLC
Condensed Consolidated Interim Financial Information for the six months ended
31 October 2008
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
|
Six months ended 31 October 2008 |
Six months ended 31 October 2007 |
Year ended 30 April 2008 |
||
|
Note |
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
||
|
Continuing operations |
||||
|
Revenue |
11,059 |
6,842 |
16,674 |
|
|
Cost of sales |
(6,901) |
(4,302) |
(10,259) |
|
|
Gross profit |
4,158 |
2,540 |
6,415 |
|
|
Administrative expenses |
(4,044) |
(3,051) |
(7,261) |
|
|
Underlying EBITDA |
870 |
235 |
938 |
|
|
Depreciation |
(79) |
(115) |
(180) |
|
|
Share based payments |
(25) |
(101) |
(190) |
|
|
Exceptional costs |
(133) |
(64) |
(556) |
|
|
Amortisation of intangible fixed assets |
(519) |
(402) |
(794) |
|
|
Impairment of tangible fixed assets |
- |
(64) |
(64) |
|
|
Operating profit / (loss ) |
114 |
(511) |
(846) |
|
|
Operating profit /(loss) |
114 |
(511) |
(846) |
|
|
Net finance costs |
(1,838) |
(1,828) |
(3,201) |
|
|
Loss before taxation |
(1,724) |
(2,339) |
(4,047) |
|
|
Income tax expense |
145 |
- |
289 |
|
|
Loss for the financial period |
(1,579) |
(2,339) |
(3,758) |
|
|
Loss per ordinary share in pence |
3 |
(0.30) |
(0.74) |
(1.19) |
There were no recognised gains or losses other than the loss for the financial period.
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
|
|
Share capital
|
Additional paid in capital
|
Reverse acquisition reserve
|
Other Reserves
|
Profit and loss account
|
Total equity |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Balance at 1 May 2008 |
3,162 |
4,550 |
(5,763) |
565 |
(9,810) |
(7,296) |
|
Loss for period |
- |
- |
- |
- |
(1,579) |
(1,579) |
|
Credit for equity settled share based payments |
- |
- |
- |
25 |
- |
25 |
|
Issue of share capital |
3,114 |
411 |
- |
- |
- |
3,525 |
|
Credit arising on modification of preference shares |
- |
- |
- |
- |
1,555 |
1,555 |
|
Loss arising on modification of Penta loans |
- |
- |
- |
- |
(2,120) |
(2,120) |
|
Transfer between reserves |
- |
- |
- |
(333) |
333 |
- |
|
Balance at 31 October 2008 |
6,276 |
4,961 |
(5,763) |
257 |
(11,621) |
(5,890) |
CONDENSED CONSOLIDATED INTERIM BALANCE SHEET
|
31 October 2008 |
31 October 2007 |
30 April 2008 |
||
|
Unaudited |
Unaudited |
Audited |
||
|
£'000 |
£'000 |
£'000 |
||
|
ASSETS |
||||
|
Non-current assets |
||||
|
Goodwill |
6,198 |
816 |
5,292 |
|
|
Other intangible assets |
5,162 |
4,249 |
4,392 |
|
|
Property, plant and equipment |
500 |
303 |
438 |
|
|
11,860 |
5,368 |
10,122 |
||
|
Current assets |
||||
|
Inventories |
227 |
446 |
353 |
|
|
Trade and other receivables |
2,402 |
3,817 |
2,151 |
|
|
Cash and cash equivalents |
292 |
- |
1,058 |
|
|
2,921 |
4,263 |
3,562 |
||
|
Total assets |
14,781 |
9,631 |
13,684 |
|
|
LIABILITIES |
||||
|
Current liabilities |
||||
|
Trade and other payables |
(5,019) |
(3,606) |
(4,595) |
|
|
Borrowings |
(968) |
(191) |
(457) |
|
|
Obligations under finance leases |
(60) |
(111) |
(84) |
|
|
Current tax payable |
(250) |
(207) |
(442) |
|
|
(6,297) |
(4,115) |
(5,578) |
||
|
Non-current liabilities |
||||
|
Trade and other payables |
(127) |
- |
(432) |
|
|
Borrowings |
(12,680) |
(5,244) |
(13,603) |
|
|
Obligations under finance leases |
(39) |
(36) |
(55) |
|
|
Deferred tax liabilities |
(1,528) |
(17) |
(1,312) |
|
|
(14,374) |
(5,297) |
(15,402) |
||
|
Total liabilities |
(20,671) |
(9,412) |
(20,980) |
|
|
Net assets / (liabilities) |
(5,890) |
219 |
(7,296) |
|
|
EQUITY |
||||
|
Capital and reserves |
||||
|
Share capital |
6,276 |
3,162 |
3,162 |
|
|
Additional paid in capital |
4,961 |
4,550 |
4,550 |
|
|
Reverse acquisition reserve |
(5,763) |
(5,763) |
(5,763) |
|
|
Other reserves |
257 |
6,829 |
565 |
|
|
Profit and loss account |
(11,621) |
(8,559) |
(9,810) |
|
|
Total equity |
(5,890) |
219 |
(7,296) |
CONSOLIDATED INTERIM CASH FLOW STATEMENT
|
Six months ended 31 October 2008 |
Six months ended 31 October 2007 |
Year ended 30 April 2008 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
|
Cash flows from operating activities |
|||
|
Loss before taxation |
(1,724) |
(2,339) |
(4,047) |
|
Adjustments for: |
|||
|
Net finance costs |
1,838 |
1,828 |
3,201 |
|
Depreciation and amortisation |
598 |
517 |
974 |
|
Impairment of tangible fixed assets |
- |
64 |
64 |
|
Decrease / (increase) in inventory |
126 |
(54) |
63 |
|
Increase in receivables |
(55) |
(651) |
(17) |
|
(Decrease) / increase in payables |
(1,150) |
(994) |
617 |
|
Equity settled share based payments |
25 |
101 |
190 |
|
Interest paid |
(110) |
(62) |
(135) |
|
Income taxes paid |
(192) |
- |
- |
|
Net cash (used in) / from operating activities |
(644) |
(1,590) |
910 |
|
Cash flows from investing activities |
|||
|
Acquisition of subsidiaries net of cash acquired |
(906) |
(109) |
(998) |
|
Deferred and contingent consideration |
- |
- |
(1,227) |
|
Purchase of property, plant and equipment |
(141) |
(74) |
(229) |
|
Net cash used in investing activities |
(1,047) |
(183) |
(2,454) |
|
Cash flows from financing activities |
|||
|
Net proceeds from issue of share capital |
3,525 |
- |
- |
|
Proceeds from borrowings |
900 |
1,280 |
2,347 |
|
Borrowings repaid |
(3,460) |
- |
- |
|
Payment of finance lease liabilities |
(40) |
(20) |
(67) |
|
Net cash from financing activities |
925 |
1,260 |
2,280 |
|
Net (decrease) / increase in cash and equivalents |
(766) |
(513) |
736 |
|
Cash and equivalents at beginning of period |
1,058 |
322 |
322 |
|
Cash and equivalents at end of period |
292 |
(191) |
1,058 |
SPIRITEL PLC
Condensed Consolidated Interim Financial Information for the six months ended
31 October 2008
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL INFORMATION
1.Nature of operations and general information
SpiriTel Plc and its subsidiaries' ("the Group") principal activity is the provision of telecommunications services.
SpiriTel Business supplies a range of products and services that includes design, supply and maintenance of traditional business telephone systems as well as IP-based voice and data services. SpiriTel Technologies is a supplier of wholesale voice services to leading telecommunications providers.
SpiriTel Plc is the Group's ultimate parent company. It is incorporated and domiciled in Great Britain. The address of SpiriTel Plc's registered office, which is also its principal place of business, is 18 King William Street, London, EC4N 7BP. SpiriTel Plc's ordinary shares are listed on the Alternative Investment Market of the London Stock Exchange.
SpiriTel Plc's consolidated interim financial statements are prepared in Pounds Sterling ("£"), which is also the functional currency of the parent company.
The consolidated condensed interim financial information has been approved for issue by the Board of Directors on 16 January 2009.
The financial information set out in this interim report does not constitute statutory accounts as defined in Section 240 of the Companies Act 1985. The Group's statutory financial statements for the year ended 30 April 2008, prepared under IFRS, have been filed with the Registrar of Companies. The auditor's report was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of the Companies Act 1985.
2.Basis of preparation
The condensed consolidated interim financial information (the interim financial information) has been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted for use in the European Union. This financial information has been prepared on the same basis and using the same accounting policies as used in the financial statements for the year ended 30 April 2008.
3. Loss per share
The calculation of the basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period. The share options are not dilutive and therefore a diluted earnings per share calculation has not been presented.
The losses and weighted average number of shares used in the calculation are set out below:
|
Continuing and total operations |
Loss £'000 |
Weighted average number of shares |
Per share amount Pence |
|
6 months to 31 October 2008 |
|||
|
Loss after tax |
(1,579) |
||
|
Loss attributable to ordinary shareholders |
(1,579) |
||
|
Weighted average number of shares |
530,482,447 |
(0.30) |
|
|
Loss per share (pence) |
|||
|
6 months to 31 October 2007 |
|||
|
Loss after tax |
(2,339) |
||
|
Loss attributable to ordinary shareholders |
(2,339) |
||
|
Weighted average number of shares |
316,233,646 |
||
|
Loss per share (pence) |
(0.74) |
||
|
Year ended 30 April 2008 |
|||
|
Loss after tax |
(3,758) |
||
|
Loss attributable to ordinary shareholders |
(3,758) |
||
|
Weighted average number of shares |
316,233,646 |
||
|
Loss per share (pence) |
(1.19) |
4.Net finance costs
|
Six months ended 31 October 2008 |
Six months ended 31 October 2007 |
Year ended 30 April 2008 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
|
Bank interest received |
- |
- |
(5) |
|
Interest payable on bank loans and overdrafts* |
124 |
60 |
125 |
|
Interest on finance leases |
7 |
2 |
7 |
|
Interest paid on Director's loan |
- |
- |
8 |
|
Unwinding of discount in liabilities** |
90 |
- |
- |
|
Interest on Penta loans** |
67 |
1,766 |
1,204 |
|
Interest waived on Penta loans** |
(512) |
- |
- |
|
Loss arising on modification of Penta preference shares** |
1,679 |
- |
2,521 |
|
Loss arising on modification of Penta debt** |
620 |
- |
- |
|
Change in fair value of embedded derivatives** |
(237) |
- |
(659) |
|
1,838 |
1,828 |
3,201 |
* Includes non-cash finance costs comprising charges required under IFRS on the amortisation of costs incurred on raising the loans and overdraft
** Non-cash finance costs comprising charges required under IFRS on the modification of the terms of the Penta loans and preference shares
5.Business combination
On 2 August 2008, SpiriTel Plc acquired 100% of the issued share capital of ED Communications Limited, a company based in the UK. The total cost includes the components stated below. The purchase price was settled in cash.
|
£'000 |
|
|
Purchase price |
832 |
|
Contingent consideration under earn out agreement payable in cash (discounted) |
458 |
|
Deferred consideration payable in cash (discounted) |
458 |
|
Due diligence and other professional fees |
118 |
|
1,866 |
Up to a further £1,700,000 of consideration may become payable under an earn out agreement depending on the level of gross profit achieved by the business in July 2009. In the opinion of the directors the likely amount payable is £500,000.
The allocation of the purchase price to the assets and liabilities of ED Communications Limited was only provisionally completed at 31 October 2008. The amounts provisionally recognised for each class of the acquiree's assets and liabilities recognised at the acquisition date are as follows:
|
Carrying amount under IFRS |
Fair value adjustments |
Provisional fair value to the Group |
|
|
£'000 |
£'000 |
£'000 |
|
|
Intangible fixed assets identified |
- |
1,289 |
1,289 |
|
Tangible fixed assets |
97 |
(97) |
- |
|
Trade and other receivables |
196 |
- |
196 |
|
Cash and cash equivalents |
44 |
- |
44 |
|
Total assets |
337 |
1,192 |
1,529 |
|
Trade payables |
(53) |
- |
(53) |
|
Other taxes |
(39) |
- |
(39) |
|
Other payables |
(116) |
- |
(116) |
|
Deferred tax |
- |
(361) |
(361) |
|
Total liabilities |
(208) |
(361) |
(569) |
|
Net assets acquired |
129 |
831 |
960 |
|
Provisional goodwill arising on the acquisition |
906 |
||
|
Consideration |
1,866 |
||
|
Satisfied by: |
|||
|
Cash |
950 |
||
|
Deferred consideration to be settled in cash (discounted) |
458 |
||
|
Contingent consideration to be settled in cash (discounted) |
458 |
||
|
1,866 |
6.Borrowings
|
31 October 2008 |
31 October 2007 |
30 April 2008 |
|
|
Unaudited |
Unaudited |
Audited |
|
|
£'000 |
£'000 |
£'000 |
|
|
Bank loans |
2,618 |
750 |
1,913 |
|
Issue costs |
(221) |
(120) |
(166) |
|
Loan notes |
268 |
- |
248 |
|
Other loans |
- |
458 |
100 |
|
Loan notes - Penta Capital |
1,078 |
770 |
770 |
|
Other loans - Penta Capital |
7,163 |
2,869 |
5,566 |
|
Debt component of redeemable preference shares - Penta Capital |
2,742 |
708 |
5,629 |
|
13,648 |
5,435 |
14,060 |
|
|
Current |
968 |
191 |
457 |
|
Non current |
12,680 |
5,244 |
13,603 |
|
13,648 |
5,435 |
14,060 |
|
|
Repayable as follows: |
|||
|
Within one year |
1,018 |
191 |
490 |
|
In the second year |
8,600 |
11,526 |
12,099 |
|
After two years |
1,118 |
489 |
1,133 |
|
10,736 |
12,206 |
13,722 |
|
|
Issue costs |
(221) |
(120) |
(166) |
|
Loan notes - fair value of embedded derivative |
308 |
- |
- |
|
Other loans - fair value of embedded derivative |
2,041 |
- |
- |
|
Preference shares - fair value of embedded derivative |
784 |
- |
504 |
|
Equity component of loans and preference shares |
- |
(6,651) |
- |
|
13,648 |
5,435 |
14,060 |
|
1 May 2008 |
Non-cash movement |
Proceeds from borrowings |
Borrowings repaid |
31 October 2008 |
|
|
Audited |
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Bank loans |
1,913 |
- |
900 |
(195) |
2,618 |
|
Issue costs |
(166) |
(55) |
- |
- |
(221) |
|
Other loans |
100 |
- |
- |
(100) |
- |
|
Loan notes |
248 |
20 |
- |
- |
268 |
|
Loan notes - Penta Capital |
770 |
308 |
- |
- |
1,078 |
|
Other loans - Penta Capital |
5,566 |
1,597 |
- |
- |
7,163 |
|
Debt component of redeemable preference shares - Penta Capital |
5,629 |
278 |
- |
(3,165) |
2,742 |
|
Total borrowings |
14,060 |
2,148 |
900 |
(3,460) |
13,648 |
Non-cash movements comprise the loss on modification of the terms of the preference shares, loans and loan notes of £2,865,000 plus (a) issue costs on debt of £55,000; less (b) the change in the fair value of embedded derivative within preference shares, loans and loan notes of £237,000; (c) interest waived of £445,000; and (d) unwinding of discounts of £20,000.
Related Shares:
STP.L