29th Mar 2011 07:00
29 March 2011
cScape Group plc
Interim results for the six months ended 31 December 2010
cScape Group plc ("cScape" or "the Group"), the digital services business, today announces its unaudited interim results for the six months ended 31 December 2010.
Enquiries, please contact:
Rob Killick
Director
cScape Group plc
020 7689 8800
Azhic Basirov / Siobhan Sergeant
Smith & Williamson Corporate Finance Limited
020 7131 4000
Chairman's statement
Financial and operational review
cScape Group made a pre tax profit of £65,000 in the first six months of 2010/11. Both cScape Strategic Internet Services (CSIS) and Blue Sky Hosting contributed to the profit, combined with a benefit from further reductions in central costs.
Blue Sky Hosting maintained its client base and revenues and continues to deliver a consistent profit stream. Blue Sky Hosting is repositioning itself to take advantage of the quickening pace of cloud hosting opportunities.
CSIS continues to win new business through its expertise in SharePoint development. In addition, CSIS delivered its first major project using the web content management product SDL Tridion to its long standing customer, the Chartered Institute of Personnel and Development (CIPD). CSIS added two new blue chip clients to its roster in this period, Deutsche Bank and Toshiba.
Outlook
While we expect Blue Sky Hosting to continue to deliver positive results in the second half of the financial year, the prospect for the CSIS side of the business is more challenging. The early part of 2011 has seen a decline in demand for services in all sectors as uncertainty has come to dominate the client outlook. Clients are generally very cautious about spending, leading to a reduction in the value of individual projects and also a stretching out of the sales cycle. However, we remain confident in the long term prospects for CSIS.
Keith Young
Chairman
29 March 2011
CSCAPE GROUP PLC
CONSOLIDATED INCOME STATEMENT
For the 6 months ended 31 December 2010
| Notes | Unaudited 6 Months to 31 December 2010 | Unaudited 6 Months to 31 December 2009 As restated | Audited Year Ended 30 June 2010 |
|
| £'000 | £'000 | £'000 |
Revenue |
|
|
|
|
Existing operations
| 3 | 2,349 | 2,503 | 4,734 |
Cost of sales |
| (260) | (306) | (386) |
Gross profit
|
| 2,089
| 2,197
| 4,348 |
Administrative expenses |
| (1,930) | (2,184) | (4,305) |
Earnings before interest, tax, depreciation, amortisation and impairment losses
|
|
159 |
13 | 43 |
Depreciation |
| (79) | (69) | (155) |
Other operating income |
| - | 4 | 16 |
Exceptional item |
| - | - | (70) |
Total (Loss) from continuing operations |
|
80 |
(52)
|
(166) |
Finance income |
| - | 5 | 3 |
Finance cost - continuing operations
| 3 | (15)
| (8)
| (63)
|
Profit/(Loss) before tax |
| 65 | (55) | (226) |
Taxation | 5 | (7) | - | - |
Profit/(Loss) for the year after tax - existing operations |
|
58 |
(55) |
(226) |
Profit/(Loss) for the year after tax - discontinued operations |
|
- |
238 |
239 |
Profit for the year after tax |
| 58 | 183 | 13 |
Profit per share- basic (restated) | 6 | 5.06p | 16.18p | 1.15p |
CSCAPE GROUP PLC
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 31 December 2010
| Notes | Unaudited 6 Months to 31 December 2010 | Unaudited 6 Months to 31 December 2009 As restated | Audited Year Ended 30 June 2010 |
|
| £'000 | £'000 | £'000 |
Profit/Loss for the period |
58 | 183 | 13 | |
Other comprehensive income |
|
|
|
|
Available for sale financial assets |
| - | - | 60 |
Other comprehensive income for the period |
| - | - | 60 |
Total comprehensive income for the period |
| 58 | 183 | 73 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months ended 31 December 2010
| Notes | Unaudited 6 Months to 31 December 2010 | Unaudited 6 Months to 31 December 2009 As restated | Audited Year Ended 30 June 2010 |
|
| £'000 | £'000 | £'000 |
Profit/(Loss) for the period |
|
58 |
183 |
13 |
Total recognised income and expenses for the period |
| 58 | 183 | 13 |
Shares issued in the period |
| 250 | - | - |
Share issue costs |
| (22) | - | - |
Available-for-sale financial asset |
| - | - | 60 |
Net change in equity in the period |
| 286 | 183 | 73 |
Opening equity |
| 522 | 449 | 449 |
Closing equity |
| 808 | 632 | 522 |
CSCAPE GROUP PLC
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2010
| Notes | Unaudited 31 December 2010 £'000 | Unaudited 31 December 2009 £'000 | Audited 30 June 2010 £'000 |
|
|
|
|
|
ASSETS |
|
|
|
|
Non Current Assets |
|
|
|
|
Other intangible assets |
| 1,252 | 1,252 | 1,252 |
Property, plant and equipment |
| 443 | 357 | 427 |
|
| 1,695 | 1,609 | 1,679 |
CURRENT ASSETS |
|
|
|
|
Trade and other receivables |
| 1,065 | 1,039 | 985 |
Available-for-sale financial asset |
| 60 | - | 60 |
Cash and cash equivalents |
| 220 | 161 | 188 |
|
| 1,345 | 1,200 | 1,233 |
TOTAL ASSETS |
| 3,040 | 2,809 | 2,912 |
|
|
|
|
|
LIABILITIES |
|
|
|
|
Current Liabilities |
|
|
|
|
Trade and other payables |
| 711 | 600 | 638 |
Financial liabilities |
| 60 | 45 | 62 |
Current tax liabilities |
| 1,396 | 1,177 | 1,525 |
|
| 2,167 | 1,822 | 2,225 |
Non-Current Liabilities |
|
|
|
|
Trade and other payables |
| - | - | 100 |
Financial liabilities |
| 65 | 55 | 65 |
Provisions for liabilities and other charges |
| - | 300 | - |
|
| 65 | 355 | 165 |
TOTAL LIABILITIES |
| 2,232 | 2,177 | 2,390 |
|
|
|
|
|
EQUITY |
|
|
|
|
Share capital | 8 | 1,167 | 1,131 | 1,131 |
Share premium |
| 691 | 499 | 499 |
Capital redemption reserve |
| 6 | 6 | 6 |
Other reserves |
| 60 | - | 60 |
Retained earnings |
| (1,116) | (1,004) | (1,174) |
TOTAL EQUITY |
| 808 | 632 | 522 |
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
| 3,040 | 2,809 | 2,912 |
CSCAPE GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 31 December 2010
| Unaudited 6 Months to 31 December 2010 | Unaudited 6 Months to 31 December 2009 As restated | Audited Year Ended 30 June 2010 |
| £'000 | £'000 | £'000 |
|
|
|
|
Operating activities |
|
|
|
Profit/(Loss) from operations | 80
| (52)
| (96)
|
Depreciation | 79 | 43 | 155 |
Exceptional item | - | - | (70) |
Other payments | (100) | - | (100) |
Increase in trade and other receivables | (81) | (89) | (35) |
Increase/(decrease) in trade and other payables | (61) | 165 | 422 |
|
|
|
|
|
|
|
|
Cash inflow/ (outflow) from operations | (83) | 67 | 276 |
Interest paid | (12) | (4) | (51) |
Interest received | - | 5 | 3 |
Interest element of finance leases | (3) | (4) | (12) |
Net inflow on operating activities from discontinued operations | - | 96 | 96 |
Net cash inflow/ (outflow) from operating activities | (98) | 160 | 312 |
|
|
|
|
Purchase of property, plant and equipment | (71) | (52) | (106) |
Sale of property, plant and equipment | - | - | 13 |
Disposal of subsidiary, net of cash disposed | - | (28) | (28) |
Net outflow on investing activities from discontinued operations | - | (4) | (4) |
|
|
|
|
Net cash used in investing activities | (71) | (84) | (125) |
|
|
|
|
Cash flow from financing activities |
|
|
|
Finance leases and hire purchase obligations | (25) | (43) | (106) |
Proceeds from share issue | 250 | - | - |
Expenses in connection with share issue | (22) | - | - |
Increase/(Decrease) in bank loan | (2) | - | - |
Repayment of bank loans | - | - | 5 |
Net outflow on financing activities from discontinued operations | - | (182) | (182) |
Net cash inflow/(outflow) from financing activities | 201 | (225) | (283) |
Net change in cash equivalents |
32 |
(149) |
(96) |
Cash and cash equivalents at the beginning of the period | 188 | 284 | 284 |
Cash and cash equivalents at the end of the period | 220 | 135 | 188 |
CSCAPE GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 31 December 2010
1. FINANCIAL INFORMATION
The financial information is for the six months ended 31 December 2010 and is neither audited nor reviewed as defined by APB Bulletin 1999/4.
The unaudited interim accounts have been prepared in accordance with International Financial Reporting Standards and International Accounting Standards (collectively IFRS) as adopted by the EU and the accounting policies set out in cScape Group plc's Annual Report for the year ended 30 June 2010. These interim accounts have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" they do not include all the statements required for full annual accounts, and should be read in conjunction with the consolidated accounts of the Group as at 30 June 2010.
2. INTERNATIONAL FINANCIAL REPORTING STANDARDS
The consolidated financial information has been prepared using accounting policies consistent with International Financial Reporting Standards ('IFRS') as adopted by the European Union applied in accordance with the provisions of the Companies Act 2006.
3. SEGMENTAL INFORMATION
The Group operates in the UK and the whole of its turnover and profit relate to the UK market. The split between continuing and discontinued activities are shown below;
| Unaudited 6 Months to 31 December 2010 | Unaudited 6 Months to 31 December 2009 Continuing | Audited Year Ended 30 June 2010 |
| £000's | £000's | £000's |
Turnover |
|
|
|
Internet services | 1,907 | 1,987 | 3,870 |
|
|
|
|
Head office | 36 | - | 36 |
|
|
|
|
Specialist Hosting | 497 | 507 | 1,040 |
|
|
|
|
Media and interactive technology | 5 | 9 | 18 |
|
|
|
|
Group eliminations | (96) | - | (230) |
|
|
|
|
Group turnover | 2,349 | 2,503 | 4,734 |
|
|
|
|
Profit/(Loss) before tax |
|
|
|
Internet services | 85 | (21) | (61) |
|
|
|
|
Head office | (95) | (172) | (327) |
|
|
|
|
Specialist Hosting | 106 | 128 | 197 |
|
|
|
|
Media and interactive technology | (31) | 10 | (35) |
|
|
|
|
|
|
|
|
Group profit/(loss) before tax | 65 | (55) | (226) |
CSCAPE GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 31 December 2010 (Continued)
4. GOODWILL
The board has assessed each subsidiary with reference to its durability, ability to sustain future long term profitability and assessed ability to maintain market position. Based on this assessment the board is of the opinion that goodwill has an indefinite life. The board carries out regular impairment reviews on goodwill and recognizes any impairment immediately.
5. TAXATION
A provision has been made for UK Corporation tax of £7,000 for the period.
6. PROFIT/(LOSS) PER ORDINARY SHARE
Basic profit/(loss) per share is calculated by dividing the profit/(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares during the year. The diluted profit/(loss) per share is the same as the actual profit/(loss) per share.
| Unaudited 6 Months to 31 December 2010 | Unaudited 6 Months to 31 December 2009 | Audited Year Ended 30 June 2010 |
Basic - continuing operations
|
|
|
|
Basic earnings attributable to ordinary shareholders: £'000 | 58 | (55) | (226) |
Weighted average number of ordinary shares (restated for 6 months ended 31 December 2009 and year ended 30 June 2010) |
1,146,684 |
1,131,156 |
1,131,156 |
Profit/(Loss) per share: | 5.06p | (4.86p) | (19.98p) |
|
|
|
|
Basic - discontinued operations
|
|
|
|
Basic earnings attributable to ordinary shareholders: £'000 | - | 238 | 239 |
Weighted average number of ordinary shares (restated for 6 months ended 31 December 2009 and year ended 30 June 2010) |
1,146,684 |
1,131,156 |
1,131,156 |
Profit/(Loss) per share: | 0.00p | 21.04p | 21.13p |
|
|
|
|
Total earnings per share | 5.06p | 16.18p | 1.15p |
The weighted average number of shares has been restated for the 6 month period ending 31 December 2009 and for the year ended 30 June 2010 as a result of the share organisation, in order for the comparatives figures to be comparable to the earnings per share for the current period.
CSCAPE GROUP PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 31 December 2010 (Continued)
7. ANALYSIS OF CHANGES IN NET (DEBT)/ FUNDS
|
At 1 July 2010 |
Cash flow |
Other Movements | At 31 December 2010 |
Net cash: | £000's | £000's | £'000's | £000's |
Cash at bank and in hand | 188 | 32 | - | 220 |
Debt: |
|
|
|
|
Bank Loan | (12) | 2 | - | (10) |
Hire purchase agreements | (115) | 25 | (25) | (115) |
Total | 61 | 59 | (25) | 95 |
8. Share capital
Share Restructure
As a result of a share restructure on 23 December 2010, each of the Company's 11,311,558 issued ordinary shares and 6,688,442 unissued ordinary shares of £0.10 each were each sub divided into one Deferred Share of £0.09 and one New Ordinary Share of £0.01.
Immediately following the share subdivision, the Company's New Ordinary Shares were reconsolidated on the basis that every 10 New Ordinary Shares became one Consolidation Ordinary Share of £0.10.
Following the share subdivision and reconsolidation of shares, the Company issued 357,143 Consolidation Shares on 24 December 2010 at a price of £0.70 per share.
As a result of the share subdivision, reconsolidation and issue of new shares the Company's share capital on 31 December 2010 is as follows;
Share Type | No. Of Shares | Nominal Value | Total Value |
Consolidation Shares | 1,488,298 | £0.10 | £ 148,830 |
Deferred Shares | 11,311,558 | £0.09 | £1,018,040 |
Total Issued Share Capital | £1,166,870 |
The voting and other rights (including the rights to dividends) conferred on the Consolidation Shares are identical to those attached to the Ordinary Shares as set out in the articles of association of the Company.
The Deferred Shares have no rights to vote or to participate in dividends and carry limited deferred rights on any return of capital. No application has been made been made by the Company for the Deferred Shares to be admitted to trading on AIM.
9. COPIES OF THE INTERIM REPORT
Copies of the interim report are available from www.cscape.com or the company secretary at cScape Group Plc, 4 Pear Tree Court, London, EC1R 0DS.
Related Shares:
Chesterfield Sp