30th Mar 2010 07:00
30 March 2010
cScape Group plc
Interim results for the six months ended 31 December 2009
cScape Group plc ("cScape" or "the Group"), the digital services business, today announces its unaudited interim results for the six months ended 31 December 2009.
Enquiries, please contact:
Geoffrey Griggs
Finance Director
cScape Group plc
020 7689 8800
Azhic Basirov/ Charles Combe
Smith & Williamson Corporate Finance Limited
020 7131 4000
Chairman's statement
Financial and operational review
It is pleasing to report a profit before tax for the first six months of the year of £183k (2008 - a loss of £331k).
The disposal of ITM Graphics Ltd in November 2009 which yielded an overall surplus of £250k has benefitted our Balance Sheet and enables us to concentrate on our core IT activities. cScape has continued to develop its expertise in Microsoft SharePoint ("SharePoint") and has added blue chip clients to its client roster, the benefits of which are expected to feed through in the second half of the financial year. The business environment remains challenging and the containment of costs remains a priority.
Outlook
We expect cScape's business to improve in the second half as the economy comes out of recession and the demand for SharePoint, particularly in the private sector, increases. It is anticipated that Blue Sky will continue to add to its client base while retaining its recurring income.
Keith Young
Chairman
30 March 2010
CONSOLIDATED INCOME STATEMENT
For the 6 months ended 31 December 2009
|
|
Notes |
Unaudited 6 Months to 31 December 09 |
|
Unaudited 6 Months to 31 December 08 |
|
Year Ended 30 June 2009 |
|
Revenue Existing operations
Cost of sales |
3 |
£'000
2,503 (306) |
|
£'000 3,457 (1,054) |
|
£'000 6,689 (1,654) |
|
Gross profit Administrative expenses |
|
2,197 (2,184) |
|
2,403 (2,470) |
|
5,035 (5,079) |
|
Earnings before interest, tax, depreciation, amortisation and impairment losses Depreciation Other operating income Provision for impairment losses Operating (Loss) Continuing operations Discontinued operations |
|
13 (69) 4 -
(52) (7) |
|
(67) (58) - -
(125) (53) |
|
(44) (100) - -
(144) (132) |
|
Total (Loss) from operations
Profit on sale of investments Restructuring costs |
|
(59)
250 - |
|
(178) - (128) |
|
(276) - - |
|
Finance income |
|
5 |
|
5 |
|
2 |
|
Finance cost - continuing operations Finance cost - discontinued operations Profit/(Loss) before tax |
3 3 |
(8) (5) |
|
(18) (12) |
|
(26) (19) |
|
183 |
|
(331) |
(319) |
|||
|
Taxation |
|
- |
|
- |
|
- |
|
Profit/(Loss) for the year after tax - existing operations Profit/(Loss) for the year after tax - discontinued operations |
4 |
195
(12) |
|
(266)
(65) |
|
(168)
(151) |
|
Profit/(Loss) for the year after tax |
|
183 |
|
(331) |
|
(319) |
|
Profit/(Loss) per share- basic |
7 |
1.6p |
|
(3.0p) |
|
(2.9p) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months ended 31 December 2009
|
|
Notes |
|
Unaudited 6 months to 31 December 2009 £'000 |
|
Unaudited 6 months to 31 December 2008 £'000 |
|
Audited Year Ended 30 June 2009 £'000 |
|
Profit/(Loss) for the period |
|
|
183 |
|
(331) |
|
(319) |
|
Total recognised income and expenses for the period |
|
|
183 |
|
(331) |
|
(319) |
|
Shares issued in the period |
|
|
- |
|
25 |
|
25 |
|
Share issue costs |
|
|
- |
|
- |
|
(15) |
|
Net change in equity in the period |
|
|
183 |
|
(306) |
|
(309) |
|
Opening equity |
|
|
449 |
|
758 |
|
758 |
|
Closing equity |
|
|
632 |
|
452 |
|
449 |
CONSOLIDATED BALANCE SHEET
As at 31 December 2009
|
|
Notes |
|
Unaudited 31 December 2009 £'000 |
|
Unaudited 31 December 2008 £'000 |
|
Audited 30 June 2009 £'000 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Non Current Assets |
|
|
|
|
|
|
|
|
Other intangible assets |
|
|
1,252 |
|
1,252 |
|
1,252 |
|
Property, plant and equipment |
|
|
357 |
|
611 |
|
516 |
|
|
|
|
1,609 |
|
1,863 |
|
1,768 |
|
Current Assets |
|
|
|
|
|
|
|
|
Inventories |
|
|
- |
|
77 |
|
73 |
|
Trade and other receivables |
|
|
1,039 |
|
1,289 |
|
1,248 |
|
Cash and cash equivalents |
|
|
161 |
|
378 |
|
633 |
|
|
|
|
1,200 |
|
1,744 |
|
1,954 |
|
TOTAL ASSETS |
|
|
2,809 |
|
3,607 |
|
3,722 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Trade and other payables |
|
|
600 |
|
818 |
|
826 |
|
Financial liabilities |
|
|
45 |
|
568 |
|
621 |
|
Current tax liabilities |
|
|
1,177 |
|
1,405 |
|
1,496 |
|
|
|
|
1,822 |
|
2,791 |
|
2,943 |
|
Non-Current Liabilities |
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
55 |
|
14 |
|
30 |
|
Provisions for liabilities and other charges |
|
|
300 |
|
350 |
|
300 |
|
|
|
|
355 |
|
364 |
|
330 |
|
TOTAL LIABILITIES |
|
|
2,177 |
|
3,155 |
|
3,273 |
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
Share capital |
|
|
1,131 |
|
1,131 |
|
1,131 |
|
Share premium |
|
|
499 |
|
514 |
|
499 |
|
Capital redemption reserve |
|
|
6 |
|
6 |
|
6 |
|
Retained earnings |
|
|
(1,004) |
|
(1,199) |
|
(1,187) |
|
TOTAL EQUITY |
|
|
632 |
|
452 |
|
449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
|
2,809 |
|
3,607 |
|
3,722 |
CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 31 December 2009
|
|
Unaudited 31 December 2009 £'000 |
Unaudited 31 December 2008 £'000 |
Audited 30 June 2009 £'000 |
|
|
|
|
|
|
Operating activities |
|
|
|
|
(Loss) from continuing operations (Loss) from discontinued operations |
(52) (7) |
(178) - |
(276) - |
|
Depreciation |
69 |
111 |
232 |
|
Other provision |
- |
(50) |
(100) |
|
(Profit)/Loss on sale of fixed assets |
250 |
- |
- |
|
Decrease/ (increase) in trade and other receivables |
209 |
209 |
252 |
|
Increase/(decrease) in trade and other payables |
(545) |
42 |
267 |
|
Decrease/(Increase) in inventory |
73 |
- |
4 |
|
|
|
|
|
|
Cash inflow/ (outflow) from operation |
(3) |
134 |
379 |
|
Interest paid |
(9) |
(30) |
(11) |
|
Interest received |
5 |
5 |
2 |
|
Interest element of finance leases |
4 |
- |
(34) |
|
Net cash inflow/ (outflow) from operating activities |
(3) |
109 |
336 |
|
Purchase of property, plant and equipment |
(56) |
(91) |
(117) |
|
Proceeds from sale |
138 |
- |
- |
|
Net cash used in investing activities |
82 |
(91) |
(117) |
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
Finance leases and hire purchase obligations |
(43) |
(68) |
(113) |
|
Proceeds from share issue |
- |
25 |
25 |
|
Expenses in connection with share capital |
- |
- |
(15) |
|
Increase in bank loan |
- |
- |
- |
|
Repayment of bank loans |
(185) |
(110) |
(41) |
|
Net cash (outflow)/ received from financing activities |
(228) |
(153) |
(144) |
|
Net change in cash equivalents |
(149) |
(135) |
75 |
|
Cash and cash equivalents at the beginning of the period |
284 |
209 |
209 |
|
Cash and cash equivalents at the end of the year |
135 |
74 |
284 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 31 December 2009
1. FINANCIAL INFORMATION
The financial information is for the six months ended 31 December 2009 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 2009. 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 2009.
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;
|
|
Six months Ended 31.12.2009 Unaudited Discontinued |
Six months Ended 31.12.2009 Unaudited Continuing |
Six months Ended 31.12.2008 Unaudited |
Year Ended 30.06.2009 Audited |
|
|
£000's |
£000's |
£000's |
£000's |
|
Turnover |
|
|
|
|
|
Internet services |
- |
1,987 |
1,910 |
3,920 |
|
|
|
|
|
|
|
Publishing and Digital Communication Services |
557 |
- |
869 |
1,552 |
|
|
|
|
|
|
|
Specialist Hosting |
- |
507 |
431 |
831 |
|
|
|
|
|
|
|
Media and interactive technology |
- |
9 |
247 |
386 |
|
|
|
|
|
|
|
Group turnover |
557 |
2,503 |
3,457 |
6,689 |
|
|
|
|
|
|
|
Profit/(Loss) before tax |
|
|
|
|
|
Internet services |
- |
(21) |
40 |
241 |
|
|
|
|
|
|
|
Publishing and Digital Communication Services |
(12) |
- |
(65) |
(151) |
|
|
|
|
|
|
|
Specialist Hosting |
- |
128 |
53 |
141 |
|
|
|
|
|
|
|
Media and interactive technology |
- |
10 |
(26) |
(10) |
|
|
|
|
|
|
|
Central and other costs |
- |
(172) |
(205) |
(540) |
|
|
|
|
|
|
|
Exceptional costs |
- |
250 |
(128) |
- |
|
|
|
|
|
|
|
Group profit/(loss) before tax |
(12) |
195 |
(331) |
(319) |
4. Loss FROM DISCONTINUED ACTIVITIES
The loss from discontinued activities arose as follows;
|
|
Unaudited 6 Months to 31/12/09 |
|
|
£'000 |
|
Revenue |
557 |
|
Cost of sales |
(419) |
|
Gross Profit |
138 |
|
Administrative expenses |
(145) |
|
Earnings before interest, tax, depreciation, Amortisation and impairment losses |
(7) |
|
Finance cost |
(5) |
|
(Loss) for the period |
(12) |
5. 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.
6. TAXATION
No liability to UK Corporation tax arose on ordinary activities for the period owing to trade losses brought forward from previous periods.
7. LOSS PER ORDINARY SHARE
Basic profit/(loss) per share is calculated by dividing the 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.
|
|
|
Six Months Ended 31.12.2009 Unaudited £000's |
Six Months Ended 31.12.2008 Unaudited £000's |
Year Ended 30.06.2009 Audited £000's |
|
|
|
|
|
|
|
Basic earnings attributable to ordinary shareholders: |
|
183 |
(331) |
(319) |
|
|
|
|
|
|
|
Weighted average number of ordinary shares |
|
11,311,558 |
11,069,902 |
11,190,736 |
|
|
|
|
|
|
|
Profit/(Loss) per share: |
|
1.6p |
(3.0p) |
(2.9p) |
|
|
|
|
|
|
8. ANALYSIS OF CHANGES IN NET (DEBT)/ FUNDS
|
|
|
At 1 July 2009 |
Cash flow |
At 31 December 2009 |
|
Net cash: |
|
£000's |
£000's |
£000's |
|
Cash at bank and in hand |
|
633 |
(472) |
161 |
|
Bank overdrafts |
|
(349) |
323 |
(26) |
|
|
|
|
|
|
|
|
|
284 |
(149) |
135 |
|
|
|
|
|
|
|
Debt: |
|
|
|
|
|
Bank Loan (invoice discounting) |
|
(185) |
185 |
- |
|
Hire purchase agreements |
|
(117) |
43 |
(74) |
|
|
|
|
|
|
|
Total |
|
(18) |
79 |
61 |
|
|
|
|
|
|
8. 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