18th Jun 2010 07:00
EMBARGOED UNTIL 7.00am, 18 June 2010
AVESCO GROUP plc
INTERIM RESULTS
Avesco Group plc, the international provider of services to the corporate presentation, entertainment and broadcast markets, announces its interim results for the half year ended 31 March 2010.
KEY HIGHLIGHTS
·; Cash generated of £4.2m (2009: £(2.2)m absorbed)
·; Revenue increased by 15% to £54.8m (2009: £47.6m)
·; EBITDA increased to £8.3m (2009: £6.1m)*
·; Trading loss reduced to £1.1m (2009: £4.0m)*
·; Operating loss of £1.7m (2009: £4.3m)
·; Basic and diluted losses per share of 6.5p (2009: 15.9p)
·; Net debt reduced to £17.5m (2009: £25.9m)
* As described in note 3, the Group uses certain non-GAAP alternative measures to assess underlying operating performance.
Ian Martin, Chief Executive, commented:
"It is encouraging to report that 2010 is developing far more positively after an exceptionally difficult 2009. As the year has progressed our clients' outlook has become more upbeat and the Group's order book for the summer period is much stronger. We are seeing significant business from the 2010 FIFA World Cup in South Africa and the World Expo in Shanghai and there has been a marked upturn in the North American market. The Board anticipates a profitable outcome for the financial year taken as a whole with continuing strong cash generation."
For further information please contact:
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Avesco Group plc |
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Ian Martin, Chief Executive |
01293 583400 |
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John Christmas, Group Finance Director |
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finnCap Corporate Finance Clive Carver
Corporate Broking Tom Jenkins |
020 7600 1658 |
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Chairman's statement
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In the first six months of the financial year ending September 2010, Avesco has continued to address the immediate challenge of the difficult economic conditions across its markets and has maintained a clear focus on its two key priorities.
Firstly, we have concentrated heavily upon cash generation and underlying cost control, the benefits of which are reflected in these results. Secondly, with an eye to the longer term, we have been careful to protect and maintain our full operational capability to ensure that we continue to deliver a first class service to our customers and to improve our market position.
The measures that we have taken leave the Avesco Group well placed both operationally and financially for a recovering market.
Financial Results
In the six months ended 31 March 2010, revenue was up 15% across the Group to £54.8m (2009: £47.6m). The effects of currency movements in the period were negligible. The trading loss (which excludes amortisation of acquired intangible assets, restructuring costs, impairment of property, plant and equipment and the impairment of goodwill) of £1.1m was a significant improvement on the prior period (2009: loss of £4.0m). The operating loss including amortisation of acquired intangible assets and restructuring costs was £ 1.7m (2009: loss of £4.3m). The charge for amortisation of acquired intangible assets and restructuring costs for the period was £0.7m (2009: £0.3m) and predominantly related to restructuring of Presteigne Charter Australia. After taking account of net interest costs of £ 0.7m (2009: £0.6m), the loss before tax was £2.5m (2009: loss of £4.9m). The basic and diluted loss per share was 6.5p (2009: loss per share of 15.9p).
The Group produced a 35% increase in EBITDA on trading operations to £8.3m (2009: £6.1m). Cash generated from the Group's operations improved to £8.2m (2009: £4.6m), which meant that even in a relatively challenging business environment we managed to generate £4.2m of free cash flow in the six months period (2009: net cash out flow of £2.2m). As a result, net debt at the end of the period reduced to £ 17.5m (2009: £25.9m) and with gearing at a very manageable 48% (2009: 53%), the Group remains in a healthy financial position.
On 31 March 2010, the net assets of the Group were £36.6m (2009: £ 48.8m) or £1.46 per share (2009: £1.95 per share).
Post-Period Development
The Group has an economic interest in the outcome of existing litigation brought by Celador International Ltd against The Walt Disney Company and others. After several years, the trial finally began on 1 June 2010 in the US District Court of Riverside, California. A verdict is expected in July. The expected trial costs have been provided for in prior periods.
Current Outlook
It is encouraging to report that 2010 is developing far more positively after an exceptionally difficult 2009. As the year has progressed our clients' outlook has become more upbeat and the Group's order book for the summer period is much stronger. We are seeing significant business from the 2010 FIFA World Cup in South Africa and the World Expo in Shanghai and there has been a marked upturn in the North American market. Responding to faster than anticipated acceptance of our 3D camera technology we are accelerating our development in this area.
Capital expenditure will be higher than expected because we have brought forward the purchase of some LED screens to support our positioning for the 2012 London Olympics, as well as enhancing our capabilities for the intervening period.
The Board anticipates a trading profit for the financial year, with continuing strong cash generation.
People
I again would like to thank all of our employees throughout the Group for their support and efforts, which are greatly appreciated. It is the people within the Avesco Group that make the difference.
Conclusion
It is true to say that the Avesco Group has been tested by the market downturn over the last 18 months. However, we have throughout remained true to the principles that we believe in, offering a first class service and applying strong and prudent financial disciplines. We continue to build our market share and reputation. It would not be in keeping with our conservative nature to say that the current positive trends will be maintained but the signs are certainly encouraging.
Michael Gibbins
Chairman
17 June 2010
Unaudited consolidated income statement
For the six months ended 31 March 2010
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Six months ended 31 March |
Year ended 30 September |
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2010 |
2009 |
2009 |
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|
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£000s |
£000s |
£000s |
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Continuing operations |
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Revenue |
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54,777 |
47,601 |
90,242 |
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Cost of sales |
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(37,297) |
(32,617) |
(63,359) |
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Gross profit |
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17,480 |
14,984 |
26,883 |
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|
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Operating expenses |
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(19,216) |
(19,280) |
(38,992) |
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Operating loss |
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(1,736) |
(4,296) |
(12,109) |
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Finance income |
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2 |
91 |
93 |
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Finance costs |
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(743) |
(703) |
(1,145) |
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Loss before income tax |
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(2,477) |
(4,908) |
(13,161) |
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|
|
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Income tax credit / (expense) |
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846 |
930 |
(82) |
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Loss from continuing operations |
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(1,631) |
(3,978) |
(13,243) |
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Discontinued operations |
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|
|
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Loss from discontinued operations |
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- |
- |
(497) |
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Loss for the financial period |
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(1,631) |
(3,978) |
(13,740) |
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Pence per share |
Pence per share |
Pence per share |
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Losses per share for losses attributable to the equity holders of the company |
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- basic |
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(6.5)p |
(15.9)p |
(54.9)p |
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- diluted |
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(6.5)p |
(15.9)p |
(54.9)p |
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|
|
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Losses per share for losses from continuing operations attributable to the equity holders of the company |
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- basic |
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(6.5)p |
(15.9)p |
(52.9)p |
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- diluted |
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(6.5)p |
(15.9)p |
(52.9)p |
Unaudited consolidated statement of comprehensive income
For the six months ended 31 March 2010
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Six months ended 31 March |
Year ended 30 September |
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2010 |
2009 |
2009 |
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£000s |
£000s |
£000s |
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|
|
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Loss for the period |
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(1,631) |
(3,978) |
(13,740) |
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|
|
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|
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Other comprehensive income |
|
|
|
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Currency translation differences |
|
(367) |
782 |
239 |
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Cash flow hedges |
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- |
(164) |
(164) |
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Deferred tax liability on cash flow hedges |
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- |
41 |
41 |
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Total comprehensive expense for the period |
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(1,998) |
(3,319) |
(13,624) |
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|
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|
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|
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Non-GAAP Alternative Performance Measures (note 3) |
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Six months ended 31 March |
Year ended 30 September |
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|
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|
|
|
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2010 |
2009 |
2009 |
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|
|
|
|
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£000s |
£000s |
£000s |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Operating loss |
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(1,736) |
(4,296) |
(12,109) |
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Adjusted to exclude: |
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Amortisation of acquired intangible assets (IFRS 3) |
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182 |
87 |
449 |
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Restructuring costs |
|
487 |
237 |
657 |
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Impairment of property, plant and equipment (IAS 36) |
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- |
- |
342 |
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Impairment of goodwill (IAS 36) |
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- |
- |
891 |
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Trading loss |
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(1,067) |
(3,972) |
(9,770) |
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Net finance costs |
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(741) |
(612) |
(1,052) |
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Income tax credit / (expense) |
|
846 |
930 |
(82) |
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Trading loss after net finance costs and income tax credit / (expense) |
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(962) |
(3,654) |
(10,904) |
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Adjusted losses per share |
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Pence per share |
Pence per share |
Pence per share |
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- basic |
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(3.8)p |
(14.6)p |
(43.6)p |
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- diluted |
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(3.8)p |
(14.6)p |
(43.6)p |
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|
|
|
|
|
|
|
|
|
|
|
|
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As at 31 March 2010
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31 March |
31 March |
30 September |
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2010 |
2009 |
2009 |
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£000s |
£000s |
£000s |
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Assets |
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Non-current assets |
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Property, plant and equipment |
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53,733 |
65,605 |
56,780 |
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Intangible assets |
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506 |
2,128 |
749 |
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Deferred income tax assets |
|
4,391 |
4,293 |
3,565 |
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Trade and other receivables |
|
308 |
243 |
109 |
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|
58,938 |
72,269 |
61,203 |
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Current assets |
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|
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Inventories |
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1,238 |
1,359 |
892 |
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Trade and other receivables |
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23,092 |
20,706 |
16,256 |
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Current income tax assets |
|
67 |
462 |
- |
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Cash and cash equivalents |
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6,218 |
2,568 |
4,531 |
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|
30,615 |
25,095 |
21,679 |
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Total assets |
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89,553 |
97,364 |
82,882 |
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Liabilities |
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Non-current liabilities |
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Borrowings and loans |
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17,846 |
20,832 |
18,956 |
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Deferred income tax liabilities |
|
1,578 |
1,568 |
1,613 |
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Provisions for other liabilities and charges |
|
514 |
386 |
475 |
|
|
|
19,938 |
22,786 |
21,044 |
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Current liabilities |
|
|
|
|
|
Trade and other payables |
|
26,345 |
17,787 |
16,519 |
|
Current income tax liabilities |
|
433 |
285 |
151 |
|
Borrowings and loans |
|
5,901 |
7,670 |
6,637 |
|
Provisions for other liabilities and charges |
|
361 |
- |
- |
|
|
|
33,040 |
25,742 |
23,307 |
|
Total liabilities |
|
52,978 |
48,528 |
44,351 |
|
Total assets less total liabilities |
|
36,575 |
48,836 |
38,531 |
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Equity |
|
|
|
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Capital and reserves attributable to equity holders of the company |
|
|
|
|
|
Ordinary shares |
|
2,599 |
2,599 |
2,599 |
|
Share premium |
|
23,286 |
23,286 |
23,286 |
|
Other reserves |
|
251 |
1,161 |
618 |
|
Retained earnings |
|
10,439 |
21,790 |
12,028 |
|
Total equity |
|
36,575 |
48,836 |
38,531 |
For the six months ended 31 March 2010
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|
|
Share capital account |
Share premium account |
Other reserves |
Retained earnings |
Total |
|
|
|
£000s |
£000s |
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
|
|
Balance at 1 October 2009 |
|
2,599 |
23,286 |
618 |
12,028 |
38,531 |
|
Total comprehensive income for the period |
|
- |
- |
(367) |
(1,631) |
(1,998) |
|
|
|
2,599 |
23,286 |
251 |
10,397 |
36,533 |
|
|
|
|
|
|
|
|
|
Transactions with owners in their capacity as owners: |
|
|
|
|
|
|
|
LTIP and share options |
|
- |
- |
- |
42 |
42 |
|
Balance at 31 March 2010 |
|
2,599 |
23,286 |
251 |
10,439 |
36,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital account |
Share premium account |
Other reserves |
Retained earnings |
Total |
|
|
|
£000s |
£000s |
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
|
|
Balance at 1 October 2008 |
|
2,599 |
23,286 |
502 |
26,644 |
53,031 |
|
Total comprehensive income for the period |
|
- |
- |
659 |
(3,978) |
(3,319) |
|
|
|
2,599 |
23,286 |
1,161 |
22,666 |
49,712 |
|
|
|
|
|
|
|
|
|
Transactions with owners in their capacity as owners: |
|
|
|
|
|
|
|
Dividends provided for or paid |
|
- |
- |
- |
(876) |
(876) |
|
Balance at 31 March 2009 |
|
2,599 |
23,286 |
1,161 |
21,790 |
48,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital account |
Share premium account |
Other reserves |
Retained earnings |
Total |
|
|
|
£000s |
£000s |
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
|
|
Balance at 1 October 2008 |
|
2,599 |
23,286 |
502 |
26,644 |
53,031 |
|
Total comprehensive income for the period |
|
- |
- |
116 |
(13,740) |
(13,624) |
|
|
|
2,599 |
23,286 |
618 |
12,904 |
39,407 |
|
|
|
|
|
|
|
|
|
Transactions with owners in their capacity as owners: |
|
|
|
|
|
|
|
Dividends provided for or paid |
|
- |
- |
- |
(876) |
(876) |
|
Balance at 30 September 2009 |
|
2,599 |
23,286 |
618 |
12,028 |
38,531 |
For the six months ended 31 March 2010
|
|
|
Six months ended 31 March |
Year ended 30 September |
|
|
|
|
2010 |
2009 |
2009 |
|
|
|
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
Cash generated from operations |
|
8,694 |
5,115 |
11,206 |
|
Net interest paid |
|
(650) |
(274) |
(740) |
|
Income tax received / (paid) |
|
178 |
(207) |
(116) |
|
Net cash generated from operating activities |
|
8,222 |
4,634 |
10,350 |
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
Purchases of property, plant and equipment |
|
(4,489) |
(11,943) |
(16,335) |
|
Proceeds from sale of property, plant and equipment |
|
513 |
2,067 |
4,806 |
|
Proceeds from sale of investments |
|
- |
3,700 |
3,700 |
|
Net cash used in investing activities |
|
(3,976) |
(6,176) |
(7,829) |
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
Proceeds from borrowings |
|
2,578 |
7,053 |
9,185 |
|
Repayments of borrowings |
|
(4,490) |
(5,365) |
(9,646) |
|
Dividends paid to company's shareholders |
|
- |
(626) |
(876) |
|
Net cash (used) / generated in financing activities |
|
(1,912) |
1,062 |
(1,337) |
|
|
|
|
|
|
|
Net increase / (decrease) in cash, cash equivalents and bank overdrafts |
|
2,334 |
(480) |
1,184 |
|
Cash, cash equivalents and bank overdrafts at beginning of period |
|
3,882 |
4,704 |
4,704 |
|
Exchange losses on cash and bank overdrafts |
|
(465) |
(2,407) |
(2,006) |
|
Cash, cash equivalents and bank overdrafts at end of period |
|
5,751 |
1,817 |
3,882 |
|
|
|
|
|
|
|
Bank overdrafts |
|
467 |
751 |
649 |
|
Cash, cash equivalents at end of period |
|
6,218 |
2,568 |
4,531 |
|
|
|
|
|
|
1. General information
Avesco Group plc ('the Company') and its subsidiaries (together 'the Group') is an international media services business. The Group has subsidiaries around the world and sells in the UK, the US, Europe, China, Singapore, Dubai and Australia.
The Company is a public limited company which is listed on the Alternative Investment Market and is incorporated and domiciled in the UK. The address of its registered office is Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH.
The registered number of the Company is 01788363.
2. Status of interim report and accounts
The interim report and accounts are unaudited but have been reviewed by the auditors and their independent review report is appended to this document. The interim report and accounts, which were approved by the Board of Directors on 17 June 2010, are not full accounts within the meaning of section 434 of the Companies Act 2006.
The figures for the year ended 30 September 2009 have been extracted from the audited annual report and accounts that have been delivered to the Registrar of Companies. PricewaterhouseCoopers LLP, Avesco Group plc's auditors, reported on those accounts under section 495 of the Companies Act 2006. Their report was unqualified and did not contain a statement under section 498 of that Act.
3. Basis of preparation
The interim report and accounts have been prepared using the accounting policies to be applied in the annual report and accounts for the year ending 30 September 2010. These are consistent with those included in the previously published annual report and accounts for the year ended 30 September 2009, which have been prepared in accordance with IFRS as adopted by the European Union.
Alternative performance measures
The Group uses alternative non-Generally Accepted Accounting Practice ("non-GAAP") financial measures which are not defined within IFRS. The Directors use these measures in order to assess the underlying operational performance of the Group and as such, these measures are important and should be considered alongside the IFRS measures. The following non-GAAP measures are referred to in these interim report and accounts.
a) Trading profit/loss
'Trading profit/loss' is separately disclosed, being defined as operating profit adjusted to exclude amortisation of acquired intangible assets, restructuring costs, impairment of property, plant and equipment and the impairment of goodwill. The Directors believe that adjusted operating profit/loss is an important measure of the underlying performance of the Group.
b) Adjusted earnings per share
'Adjusted earnings per share' is calculated by dividing the profit for the period excluding the amortisation of acquired intangible assets, restructuring costs, impairment of property, plant and equipment, impairment of goodwill and the profit from discontinued operations and all related taxation effects. The Directors believe that adjusted earnings per share provides an important measure of the underlying earnings capacity of the Group.
4. Segmental information
|
|
|
|
|
|
|
|
|
Six months ended 31 March |
Year ended 30 September |
|
|
|
|
2010 |
2009 |
2009 |
|
|
|
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
Creative Technology |
|
32,138 |
29,408 |
53,270 |
|
Full Service |
|
10,461 |
10,178 |
19,292 |
|
Broadcast |
|
12,178 |
8,015 |
17,680 |
|
Group revenue |
|
54,777 |
47,601 |
90,242 |
|
|
|
|
|
|
|
Creative Technology |
|
(79) |
(1,198) |
(4,519) |
|
Full Service |
|
(822) |
(1,054) |
(2,725) |
|
Broadcast |
|
29 |
(1,691) |
(2,461) |
|
Head Office |
|
(195) |
(29) |
(65) |
|
Trading loss |
|
(1,067) |
(3,972) |
(9,770) |
|
|
|
|
|
|
|
Amortisation of acquired intangible assets (IFRS 3) |
|
(182) |
(87) |
(449) |
|
Restructuring costs |
|
(487) |
(237) |
(657) |
|
Impairment of property, plant and equipment (IAS 36) |
|
- |
- |
(342) |
|
Impairment of goodwill (IAS 36) |
|
- |
- |
(891) |
|
Operating loss |
|
(1,736) |
(4,296) |
(12,109) |
5. Earnings before interest, taxation, depreciation and amortisation ('EBITDA')
|
|
|
|
|
|
|
|
|
Six months ended 31 March |
Year ended 30 September |
|
|
|
|
2010 |
2009 |
2009 |
|
|
|
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
Trading loss |
|
(1,067) |
(3,972) |
(9,770) |
|
Depreciation |
|
9,167 |
9,949 |
19,641 |
|
Amortisation of software |
|
151 |
144 |
302 |
|
EBITDA on trading operations |
|
8,251 |
6,121 |
10,173 |
6. Earnings per share
|
|
|
|
|
|
|
|
|
Six months ended 31 March |
Year ended 30 September |
|
|
|
|
2010 |
2009 |
2009 |
|
|
|
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
Loss for the period |
|
(1,631) |
(3,978) |
(13,740) |
|
Profit from discontinued operations |
|
- |
- |
497 |
|
Loss from continuing operations |
|
(1,631) |
(3,978) |
(13,243) |
|
Amortisation of acquired intangible assets (IFRS 3) |
|
182 |
87 |
449 |
|
Restructuring costs |
|
487 |
237 |
657 |
|
Impairment of property, plant and equipment (IAS 36) |
|
- |
- |
342 |
|
Impairment of goodwill (IAS 36) |
|
- |
- |
891 |
|
Trading loss after net finance costs and income tax credit |
|
(962) |
(3,654) |
(10,904) |
|
|
|
|
|
|
|
Loss from discontinued operations |
|
- |
- |
(497) |
|
|
|
|
|
|
|
Weighted average number of shares (net of treasury shares) |
|
|
|
|
|
For basic earnings per share (000's) |
|
25,023 |
25,023 |
25,023 |
|
Effect of dilutive share options (000's) |
|
- |
- |
- |
|
For diluted earnings per share (000's) |
|
25,023 |
25,023 |
25,023 |
|
|
|
|
|
|
|
Losses per share |
|
|
|
|
|
Basic |
|
(6.5)p |
(15.9)p |
(54.9)p |
|
Diluted |
|
(6.5)p |
(15.9)p |
(54.9)p |
|
|
|
|
|
|
|
Continuing operations basic |
|
(6.5)p |
(15.9)p |
(52.9)p |
|
Continuing operations diluted |
|
(6.5)p |
(15.9)p |
(52.9)p |
|
|
|
|
|
|
|
Adjusted basic |
|
(3.8)p |
(14.6)p |
(43.6)p |
|
Adjusted diluted |
|
(3.8)p |
(14.6)p |
(43.6)p |
|
|
|
|
|
|
|
Discontinuing operations basic |
|
- |
- |
(2.0)p |
|
Discontinuing operations diluted |
|
- |
- |
(2.0)p |
Basic earnings per share have been calculated by dividing loss for the period by the weighted average number of ordinary shares in issue during the period.
Adjusted earnings per share have been calculated by dividing adjusted loss for the period by the weighted average number of ordinary shares in issue during the period.
There is no dilution of shares in any of the above periods of account as the share price was less than the option price at the period end and the Group's results showed a loss for the above periods.
7. Analysis of net debt
|
|
|
|
At 1 October 2009 |
Cash flow |
Other non cash changes |
Currency translation differences |
At 31 March 2010 |
|
Group |
|
|
£000s |
£000s |
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
|
|
|
Cash at bank and in hand |
|
|
4,531 |
2,168 |
- |
(481) |
6,218 |
|
Bank overdrafts |
|
|
(649) |
166 |
- |
16 |
(467) |
|
Net cash |
|
|
3,882 |
2,334 |
- |
(465) |
5,751 |
|
|
|
|
|
|
|
|
|
|
Bank loans due in more than one year |
|
|
(13,700) |
(719) |
- |
(137) |
(14,556) |
|
Hire purchase obligations due in less than one year |
|
|
(5,988) |
3,097 |
(2,475) |
(66) |
(5,432) |
|
Hire purchase obligations due in more than one year |
|
|
(5,256) |
(466) |
2,475 |
(45) |
(3,292) |
|
Net debt |
|
|
(21,062) |
4,246 |
- |
(713) |
(17,529) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 October 2008 |
Cash flow |
Other non cash changes |
Currency translation differences |
At 31 March 2009 |
|
Group |
|
|
£000s |
£000s |
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
|
|
|
Cash at bank and in hand |
|
|
4,845 |
93 |
- |
(2,370) |
2,568 |
|
Bank overdrafts |
|
|
(141) |
(573) |
- |
(37) |
(751) |
|
Net cash |
|
|
4,704 |
(480) |
- |
(2,407) |
1,817 |
|
|
|
|
|
|
|
|
|
|
Bank loans due in more than one year |
|
|
(14,225) |
1,000 |
- |
(1,034) |
(14,259) |
|
Finance lease obligations due in less than one year |
|
|
(5,712) |
2,014 |
(2,957) |
(264) |
(6,919) |
|
Finance lease obligations due in more than one year |
|
|
(4,613) |
(4,702) |
2,957 |
(215) |
(6,573) |
|
Net debt |
|
|
(19,846) |
(2,168) |
- |
(3,920) |
(25,934) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 October 2008 |
Cash flow |
Other non cash changes |
Currency translation differences |
At 30 September 2009 |
|
Group |
|
|
£000s |
£000s |
£000s |
£000s |
£000s |
|
|
|
|
|
|
|
|
|
|
Cash at bank and in hand |
|
|
4,845 |
1,685 |
- |
(1,999) |
4,531 |
|
Bank overdrafts |
|
|
(141) |
(501) |
- |
(7) |
(649) |
|
Net cash |
|
|
4,704 |
1,184 |
- |
(2,006) |
3,882 |
|
|
|
|
|
|
|
|
|
|
Bank loans due in more than one year |
|
|
(14,225) |
1,150 |
- |
(625) |
(13,700) |
|
Hire purchase obligations due in less than one year |
|
|
(5,712) |
5,436 |
(5,585) |
(127) |
(5,988) |
|
Hire purchase obligations due in more than one year |
|
|
(4,613) |
(6,125) |
5,585 |
(103) |
(5,256) |
|
Net debt |
|
|
(19,846) |
1,645 |
- |
(2,861) |
(21,062) |
8. Interim and final dividends
No dividend was paid in respect of the year ended 30 September 2009.
No interim dividend is proposed in respect of the year ending 30 September 2010.
9. Contingencies
InvestinMedia Holdings Limited ("InvestinMedia"), a subsidiary of the Company, sold its investment in Complete Communications Corporation Limited ("Complete") on 20 December 2006. In connection with the sale, InvestinMedia and other vendors gave certain warranties and indemnities to the buyer, liability in respect of which runs for periods of up to seven years from the date of completion. The buyer is pursuing legal action on behalf of InvestinMedia and other vendors, the costs of which are covered by an indemnity. Companies in the Complete group are also subject to legal claims which may give rise to liability on the part of InvestinMedia and the other vendors under the warranties and indemnities. An estimate of InvestinMedia's share of any liabilities that may arise from these actions has been provided for in the accounts.
10. Distribution of interim report and accounts
Copies of this interim report and accounts are being sent to all shareholders and additional copies are available either from the Company's web site (www.avesco.com) or from the Company's registered office: Avesco Group plc, Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH. Telephone: +44 (0) 1293 583 400. Fax: +44 (0) 1293 583 410. E-mail: [email protected].
INDEPENDENT REVIEW REPORT TO AVESCO GROUP PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the interim report and accounts for the six months ended 31 March 2010, which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of changes in equity, consolidated cash flow statement and related notes. We have read the other information contained in the interim report and accounts and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' Responsibilities
The interim report and accounts are the responsibility of, and have been approved by, the Directors. The Directors are responsible for preparing the interim report and accounts in accordance with the AIM Rules for Companies which require that the financial information must be presented and prepared in a form consistent with that which will be adopted in the Company's annual financial statements.
This interim report and accounts has been prepared in accordance with the basis set out in note 3.
The maintenance and integrity of the Avesco Group plc website is the responsibility of the Directors; the work carried out by the auditors does not involve a consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Our Responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the interim report and accounts based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim report and accounts for the six months ended 31 March 2010 are not prepared, in all material aspects, in accordance with the basis set out in note 3 and the AIM Rules for Companies.
PricewaterhouseCoopers LLP
Chartered Accountants
17 June 2010
Gatwick
Related Shares:
AVS.L