22nd Nov 2006 07:01
Imagination Technologies Group PLC22 November 2006 22 November 2006 Imagination Technologies Group plc Royalties and PURE Digital drive interims revenue up 63% Imagination Technologies Group plc (LSE: IMG), leading provider ofSystem-on-Chip (SoC) Intellectual Property (IP), today announces results for thesix months to 30 September 2006. Business Update • Royalties • 15m partner chips shipped in H1 - up 350% (2005: 3.2m) • Over 40 mobile phone handsets now shipping including Nokia, Sony Ericsson, Panasonic, Sharp, NEC, Fujitsu, Mitsubishi, and Motorola with more in the pipeline • Maintained 70% DAB market share with products from all key brands including Sony, PURE, Philips, Roberts • Leading supplier of 3D graphics technology for in-car navigation - many design wins in Japan • 45 partner chip design wins (2005: 37) and 17 in production • Licensing • Concluded number of financially significant and strategically important licensing agreements o Seven new agreements including Intel, Texas Instrument, Renesas, Freescale, Centrality o Key areas of Mobile Multimedia, Mobile Computing/PC, Personal/In-car navigation and Mobile TV o Includes partnership with Intel in the new emerging Mobile Computing/PC segment • Active pipeline of prospects • PURE Digital • Maintained strong year on year growth momentum • Increased market share • Strong Christmas quarter and record revenues for the year expected Financials • Group revenue up 63% at £20.8m (2005: £12.8m)• Technology revenues increased 84% to £10.2m (2005: £5.5m) • Royalty revenue up over 200% to £4.6m (2005: £1.5m) • Licensing revenue up 38% to £5.6m (2005: £4.0m)• PURE Digital revenues increased by 47% to £10.6m (2005: £7.3m)• Gross Profit up 54% to £11.8m (2005: £7.7m)• Continued investment with R & D spend up 10% to £11.0m• Loss before tax reduced by 57% to £2.1m (2005: Loss £4.8m)• Cash - balance of £5.5m as at 30 September 2006• Intel Capital investment in October raised £5.3m - 2.8% of share capital Geoff Shingles, Chairman, commented: "During the first half, we have seen strong growth in both our Technologybusiness and PURE Digital sales resulting in a record Group revenue level. Wehave seen good performance and momentum build-up in all key aspects of thebusiness including chip volume growth, new design win rate and PURE Digitalprogress. "The closure of a number of strategically important deals with key partnersincluding Texas Instruments, Intel and Renesas during the half are particularlysignificant. The new extended partnership with Intel in mobile computing/PC andIntel's investment are clear examples of the strength and value our partners seein our offerings and the relationship. "We expect the significant volume ramp-up in partner chip shipments and thegrowth of royalty revenue to continue. In addition, the active pipeline oflicensing opportunities gives us confidence that our technologies willincreasingly be adopted by existing and new partners during the second half andbeyond. "PURE Digital is expected to continue its substantial progress with a strongsecond-half driven by extensive retail ranging and Christmas demands for itsproducts. "Overall, we are delighted by the progress made in the last six months and thestrong position of the Group to maximise opportunities in the future." Enquiries:Imagination Technologies Group plc Tel (today): 020 7457 2020Geoff Shingles, Chairman Tel (thereafter): 01923 260 511Hossein Yassaie, CEOTrevor Selby, CFO College Hill Tel: 020 7457 2020Nick Elwes/Adrian Duffield Operational and Financial Review Overview The first half has seen a significant increase in Group revenues driven bystrong growth in both our Technology business and PURE Digital, our Systembusiness. The Technology business growth was driven by strong year-on-yearroyalty revenue growth as well as improved performance in closure of licensingdeals. In particular we saw a record partner chip unit shipment of 15m comparedto 3.2m same period last year. The royalty revenue for the period has increasedby more than 200% and, as expected, reduction in the average per-unit royaltyrate has been more than offset by the substantial volume increase. The volumegrowth has been primarily driven by the production ramp-up across mobilesegment, the DAB market and 3D-based car navigation systems with some earlycontributions from mobile TV and TV segments. There are now over 40 phonehandsets that are based on our technology and this number is growing everymonth. The momentum behind new partner SoC design wins has continued with growth of thenumber of committed partner SoCs to 45 from 37 a year ago. These design wins arethe drivers for future partner SoC shipments and therefore further royaltygrowth. During this half we have concluded a number of strategically important licensingagreements in mobile multimedia and mobile computing/PC segments involving TexasInstruments, Renesas and Intel. Significantly we extended the partnership withIntel to include the important and emerging segment of mobile computing/PC.These deals, alongside a number of other licensing agreements, have resulted ina growth of close to 40% in licensing revenue. The strong and growing pipeline of discussions and activities with key playersfor both existing and new technologies continues to demonstrate the seriousinterest in our offerings and the real relevance of our IP to important andgrowing markets. We are also seeing that the convergence trends are resulting inour partners' increased interest in combining different IP cores to delivermulti-function and feature-rich products. PURE Digital has continued its strong progress and remains the number onesupplier in the digital radio market with an increasingly comprehensive productrange. It continues to make good progress in developing the digital radio marketwhilst growing its already significant market share. We are confident of a verystrong Christmas period and expect it to contribute to significant growth in thesecond half of the year. Financial Review In the six months ended 30 September 2006, Group revenue was up 63% to £20.8m(2005: £12.8m) as both the Technology and the PURE Digital businesses grewstrongly. Technology revenues, comprising royalties and licensing, increased by 84% to£10.2m (2005: £5.5m). Royalty revenues were £4.6m, up over 200% growth (2005:£1.3m). The volume of partner chips shipping incorporating our IP, whichgenerate our royalty revenue stream, started to build during last financialyear. We have seen this trend continue strongly with 15.0 million chips shippedin the first half. This shows sequential growth on the 3.2 million and 8.7million chips shipped in the first and second halves of last financial yearrespectively. Licensing revenues were £5.6m (2005: 4.0m) an improvement on both the first andsecond halves of last financial year; 38% up on the first half of last year and11% ahead of the second half. Our PURE Digital business revenues were up 47% to £10.6m (2005: £7.3m) due to acombination of a broadened product range and the very strong ranging acrossretailers. This business is seasonal with a significant dependence on theChristmas period. Gross profit increased 54% to £11.8m (2004: £7.7m). Whilst the overall grossmargin of 57% (2005: 60%) was slightly lower than last year. We expect tomaintain gross margins in both business streams at their current levels. The R & D spend of £11.0m (2005: £10.0m) was up 10%. The vast majority of thisspend is in developing leading edge technologies, often in conjunction with alead partner; completing existing projects with partners; and ensuring wesupport our partners in using our technologies. We will continue to need toinvest in R & D as the business develops and we are setting up overseasengineering operations in India and China to grow our engineering capabilitycost effectively. Sales and administrative expenses increased by 13% to £3.0m (2005: £2.6m) as wehave continued to invest in our business development infrastructure. We haveexpanded our sales infrastructure for our technology business and now have salesactivities in Japan, US, Taiwan and Korea. For PURE Digital, we continue topromote our PURE brand through targeted marketing expenditure. We have alsomoved the PURE Digital business into a separate and larger building to ensurethat it has the capacity to continue to grow in the future. As a result of the strong revenue and margin growth in the half, the loss beforetaxation has reduced by 57% to £2.1m (2005: loss £4.8m). Loss per share, aftera small tax charge, was 1.1p (2005: loss 2.5p). We have tightly controlled cash flow, with the reduction in cash in the firsthalf limited to £0.9m. This was primarily achieved through a £1.0m cash benefitfrom a reduction in working capital since March. We have allowed an increase instock in September to ensure that PURE Digital can achieve the all importantChristmas delivery schedules for retailers. The cash balance at the end ofSeptember was £5.5m which compares with £6.4m at March 2006. In October, weconcluded a cash placing with Intel Capital for 6 million shares which raised anadditional £5.3m. Business Update Overview Technology Business Update The key drivers for our technology business are:- i- Partner SoC volume shipments which drive today's royaltiesii- New SoC design wins which result in deployment of our IP in silicon products and drive royalties in 18 months to 2.5 yearsiii- Licensing our IP to existing or new partners which drives market penetration of our IP through new partner SoCs Partner SoC Volume Shipment and Target Markets We started the first half with thirteen partner SoCs in production or shippingacross five markets; one in digital radio, six in mobile multimedia, one inmobile computing, two in car navigation, two in STB/TV and one in Mobile TVsegment. It is these devices that enabled a dramatic increase in the volume ofSoCs shipped, to over 15m units during the first half. Currently the number ofpartner devices in production or shipping has risen to 17 which includes threenew devices in the mobile phone segment and one in the amusement segment. These17 devices target major markets and we expect to see continued momentum involume during the second half of 2006/7 and beyond. In the mobile multimedia segment, the number of announced handsets and mobiledevices using our PowerVR technology has now risen to over 40. These includehandsets from Nokia, Sony Ericsson, NEC, Fujitsu, Mitsubishi, Panasonic, Sharpand Motorola. We expect further handset design wins and/or launches over thecurrent financial year including major handset suppliers in key markets. Theglobal mobile phone market is forecast to exceed 1 billion units per year by2008. We believe that more than 50% of this market will, over time, prove to bea relevant target for our mobile graphics and multimedia technologies. We haveboth the technology and partnerships to benefit significantly as this marketdevelops. In the digital radio market we have maintained our technology leadershipposition and continue to have over 70% market share via our partnership withFrontier Silicon, whose original Chorus 1 device as well as the new Chorus 2 SoChave been selected by many manufacturers including Sony, Philips, Sharp, Robertsand PURE Digital. Currently well over 100 shipping DAB products are using ourtechnology. We still expect the total UK DAB market shipment to exceed 2.5million units in 2006 and reach close to 6 million by 2008. We also expect ourenabling of other technologies, such as internet radio, and the arrival ofextensions to the DAB standard to, in due course, further expand our worldwidemarket opportunities in this space. In the car navigation market, most of the new in-car 3D-enabled navigationsystems in Japan use the Renesas NaviCore family of chips which deploy ourPowerVR technology. This market now encompasses both the 'after-market' and 'factory-fit' which is driving increased volume. The 2006 market size for carnavigation was around 4.8 million units for the Japanese market alone, whichtends to demand advanced technologies first. Already 30% of shipping end-userproducts in this market has migrated to 3D-based solutions and the trend iscontinuing with most of the new designs adopting 3D technology. The worldwidein-car navigation market, which generally takes its lead from Japanese trends,is currently just over 10 million units however a car navigation system isexpected to become a standard feature in every car, leading to bigger volumesfor this market. In the recent years the lower cost 'Personal' navigation systems (portableSatNavs) have become popular creating a large 'after-market' worldwide.Technologically this market lags the more expensive and more integrated 'In-car'systems but is expected to follow the same trends in due course and adoptadvanced 3D graphics and an enhanced user interface. The 'Personal' navigationsystem market is now over 10m annually and growing. We expect future generationsof this category of products will begin to use solutions incorporating ourtechnology. Additionally the trend towards virtual dashboards using LCDtechnology and synthesized 3D-graphics is accelerating within the car industryand will further grow our opportunities in this market. With a number ofadditional licensees during the past 6-12 months, we now have four activepartners in this segment targeting both In-car and Personal categories ofproducts. We have seen initial volume from the early mobile TV roll out in Korea andChina. These solutions use our first generation technology targeting the T-DMBstandard. The Samsung T-DMB mobile-TV products, the SPH-B2300 in Korea andSamsung SGH-P900 for EU, were among the first mobile TV enabled handsets and arepowered by our mobile TV receiver technology through the Frontier Siliconrelationship. Additionally there is also a trend in the market to integratemobile TV functionality with personal or in-car navigation systems. Two recentexamples of these that use our technology are the Hyundai Techno HDT-8800ND andMando MWN-7000D, which are starting shipment in Korea. We expect this trend tobe followed in other geographical markets which also allows us to offer bothgraphics and mobile TV solutions for such converged products. The scalabilityand flexibility of our software-defined radio technology based on our UCC andMETA IP has enabled us to adapt these technologies for all key mobile TVstandards in addition to the digital radio and TV segments. We now offer aunique multi-standard mobile TV IP platform that can support all the keyworldwide standards including DVB-H, T-DMB and 'One Seg' ISDB-Tss. We alreadyhave two partners in this space, Frontier Silicon and Mavrix Technology (a USstart-up), and further agreements are in negotiation. The TV market is an established market which is undergoing a number ofconcurrent changes including transition to digital, arrival of High Definition(HD) and migration to flat panel technology. Our aim is to take advantage ofthese changes to develop our business and market share. We have worked with leadpartners including Frontier Silicon and Sharp and in the latter have seeninitial model shipments in Japanese market. We are now attracting more interestfrom other key players who find the combination of our multi-standarddemodulation technology (UCC); multi-standard multi-stream video decoders(PowerVR MSVDX); efficient META multithreading processor and our advanced imagequality enhancement technology to be very attractive. The nature of this marketwhere major TV suppliers all have their own extensive customisation, combinedwith the complexity of next generation TVs, has however meant that the volumeramp up and solution delivery in this segment takes longer than other segments.The worldwide market for LCD TV in 2005 reached 17 million. The forecasts fromkey industry players suggest that the LCD TV market will exceed 100 millionunits by 2010. In addition to the relationships above, certain of our IP cores,including graphics, are also being designed in by our other semiconductorpartners targeting the TV market. We expect further progress in existingactivities and also the securing of new partners in this market as ourtechnology base matures and broadens. New SoC Design Wins During the half we have seen continued growth in the number of committed partnerSoCs deploying our technologies. Across the mobile phone, digital radio/audio,mobile computing/PC, car navigation, mobile TV, TV, and amusement marketsegments, we now have a total of around 45 SoCs committed by partners, up from37 at the same time last year. Seventeen of these are now in production andshipping, although some only recently reached this stage and have not yetcontributed materially to royalty revenues. The growth in partner SoC designwins underlines our medium to long-term royalty revenue stream as these newdesign wins progress through development to product shipment and volume ramp-up. The target markets for the 45 committed partner SoCs are: 19 in mobilemultimedia, two in digital radio, three in mobile computing/PC (including oneexisting device in PDA market), seven for car navigation/information, four formobile TV segments, seven for TV, and three in amusement/toys. Based on our partners' activities in deploying the IP that they have alreadylicensed from us, and also the ongoing active pipeline of new licensingdiscussion, we expect the number of partner SoC design wins to continue itssteady growth in the current year. Licensing and Customisation Progress For the half-year to 30 September 2006, we concluded seven new licensing/customisation agreements across the mobile multimedia, mobile computing/PC,digital radio/audio and mobile TV segments. The agreements in mobile multimediaand mobile computing/PC technologies involving Texas Instrument, Intel andRenesas were of strategic importance. We also secured additional licenses forPowerVR MBX or related video cores with Freescale and Centrality. We now haveeight partners who have licensed PowerVR MBX and four who have licensed PowerVRSGX family members. Additionally, Mavrix Technology has licensed our mobile TVsolution, with a significant agreement with another partner in this spaceexpected shortly. Overall, the growing customer engagements and serious discussions over the pastsix months have significantly strengthened our opportunity pipeline across allour product areas. This has involved both existing and new technologies and ishelping to drive future licensing business. We have continued to ensure that we have sufficient regional presence in keymarkets where our major customers or potential customers operate. In addition toour Japan, US and Taiwan offices we have also established a presence in Korea toservice the growing interest in our technologies from all key regions. Pure Digital PURE Digital maintained its leadership of the DAB market and has in fact grownits market share through a strategy with three main components. Firstly, it hascontinued to deliver products which provide advanced and novel features, takingadvantage of the digital nature of DAB and the emergence of digital audio. As aresult it now has products with features such as pause/rewind/record, digitalstorage (SD Card), MP3 integration, USB upgradeability, EPG (ElectronicProgramme Guide) and teletext-style capabilities (IntellitextTM). As the second aspect of its strategy, PURE has continued to diversify itsproduct range beyond portable/kitchen radios enabling other traditional consumeraudio segments with DAB while increasing usability and other advanced features.Specifically PURE's new micro system range DMX and Legato integrate manyadvanced features as well as CD, MP3 and digital storage making them anindustry-leading step in this segment. Another very successful segment that PUREhas now secured the top position in has been the clock/radio segment wherePURE's Chronos has achieved the best selling position. Finally to ensure its brand can secure maximum shelf space and reach themajority of consumers, while at the same time driving the DAB market forward,PURE has enabled quality low-cost products for mainstream markets. The PUREONE, at £49, has been an outstanding success attracting very strong demand andhas achieved the goal of strengthening the brand and growing market share. As a result, PURE Digital sales have grown by approximately 50% compared to sameperiod last year. PURE Digital now has over 30% market share in the overalldigital radio market in UK and in the case of the portable radio segment itsshare has reached 40%. In the UK, all major stores and retailers including JohnLewis, M&S, Argos, Dixons, Comet, and Tesco now sell PURE Digital products. Given the strong product line-up and the extensive ranging with all keyretailers, we expect PURE Digital to demonstrate strong performance during thesecond half as it takes advantage of the key Christmas selling period. For the medium to long-term PURE Digital has a strong roadmap designed tomaintain its position in the DAB market as well as driving other relatedconsumer markets using the advanced technologies from the Group. Outlook and the Future The first half has seen strong growth in both our Technology and PURE Digitalbusinesses. Overall we expect these trends to continue for the second half. The momentum in partner chip volume to 15m units and the growth of associatedroyalty revenues by more than 200% continue to demonstrate the inherent strengthand the potential scalability of our business. We expect the royalty revenuegrowth to continue as the unit shipment volume increase. As expected the volumegrowth will involve some gradual per-unit average royalty reduction as we movetowards very high volume but the growth in the unit shipment will outpace anysuch erosion. In developing our licensing business to date, we have been able to secure strongpositions in key markets, with successful and on-going partnerships with theleading players in place. In particular, our partnership with Intel shouldfurther drive our progress in mobile computing/PC segment as the benefits of ourefficient and low power technologies are highly relevant to this evolvingmarket. We have market-leading technologies, with clear competitive advantages, for themobile TV and TV segments which beyond our lead partnerships are attracting agrowing customer base which we expect to help further development of thesebusiness segments. The requirements from existing partners and the growing interest from newcustomers for our technologies give us confidence that our technologies willcontinue to be adopted by existing and new partners. Whilst we expect acontinuing active year for licensing opportunities, as in the past timing andthe associated level of revenues are difficult to forecast accurately. We are confident that PURE Digital will maintain its strong progress in thedigital radio/audio market as its innovative and leading products continue to beselected by retailers and digital radio technology becomes a de facto feature inmost home audio and music systems. Given the strong product range and extensiveproduct ranging by all key retailers we expect the second half to be a strongand record revenue period for PURE Digital. Hossein Yassaie Chief Executive 22 November 2006 Interim Results for the six months to 30 September 2006SUMMARISED CONSOLIDATED INCOME STATEMENT Half year to Half year to Year to 30 September 30 September 31 March 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Revenue 20,787 12,758 35,273 Cost of sales (8,963) (5,104) (16,231) Gross profit 11,824 7,654 19,042 Research and development expenses (11,029) (9,999) (20,649)Sales and administrative expenses (2,959) (2,626) (5,549)Total operating expenses (13,988) (12,625) (26,198) Operating loss (2,164) (4,971) (7,156) Financial income 121 195 329Financial expenses (19) (41) (43)Net financing income 102 154 286 Loss before taxation (2,062) (4,817) (6,870) Income tax expense (237) (127) (490) Loss after taxation (2,299) (4,944) (7,360) Loss per share - basic and diluted (1.1p) (2.5p) (3.7p) CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENDITURE Half year to Half year to Year to 30 September 30 September 31 March 2006 2005 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Loss for the period (2,299) (4,944) (7,360)Exchange differences on translation of foreign (1) - 2operationsTotal recognised income and expense for the (2,300) (4,944) (7,358)period SUMMARISED CONSOLIDATED BALANCE SHEET At 30 September 2006 At 30 September 2005 At 31 March 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000Assets Non-current assetsIntangible assets 4,754 4,792 4,675Property, plant and equipment 3,572 3,573 3,712Investment 6,155 6,155 6,155 14,481 14,520 14,542Current assetsInventories 4,392 2,958 3,445Trade and other receivables 9,228 7,305 9,254Cash and cash equivalents 5,514 8,527 6,384 19,134 18,790 19,083Current liabilitiesTrade and other payables (8,675) (5,054) (6,896) Net current assets 10,459 13,736 12,187 Non-current liabilitiesLong-term borrowings (543) (576) (557) Net assets 24,397 27,680 26,172 Equity Called up share capital 20,788 20,447 20,706Share premium account 44,686 44,001 44,472Other capital reserve 394 313 319Warrant reserve 1,029 1,111 1,104Merger reserve 2,402 2,402 2,402Revaluation reserve 5,542 5,542 5,542Translation reserve 3 2 4Retained earnings (50,447) (46,138) (48,377)Total equity 24,397 27,680 26,172 SUMMARISED CONSOLIDATED CASH FLOW STATEMENT Half Year to Half Year to Year to 30 September 2006 30 September 2005 31 March 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000Cash flows from operating activities Loss before tax (2,062) (4,817) (6,870) Adjustments for: Depreciation and amortisation 813 1,029 1,757 Net financing income (102) (154) (286) Loss on sale of property, plant & - 1 5equipment Share-based remuneration 229 150 327Operating cash flows before movements in (1,122) (3,791) (5,067)working capital (Increase) in inventories (947) (626) (1,113) Decrease/(increase) in receivables 162 (68) (1,993) Increase/(decrease) in payables 1,770 (3,065) (1,539) Cash generated by operations (137) (7,550) (9,712) Interest paid (19) (41) (43)Taxes paid (366) (133) (304) Net cash flows from operating activities (522) (7,724) (10,059) Cash flows from investing activitiesInterest received 114 150 260Acquisition of intangible assets (158) (166) (346)Acquisition of property, plant and equipment (443) (672) (1216)Proceeds on disposal of property, plant and - - 6 equipmentNet cash used in investing activities (487) (688) (1,296) Cash flows from financing activitiesProceeds from the issue of share capital 296 9,128 9,857Repayment of borrowings (14) (12) (31)Net cash from financing activities 282 9,116 9,826 Net (decrease)/increase in cash and cash (727) 704 (1,529)equivalents Effect of exchange rate fluctuation (143) 153 243 Cash and cash equivalents at the start of the 6,384 7,670 7,670period Cash and cash equivalents at the end of the 5,514 8,527 6,384period NOTES: 1. The summarised profit and loss account for the half year to 30 September2006 comprises the consolidated results of Imagination Technologies Group plc,Imagination Technologies Ltd and its subsidiaries. 2. This interim financial information has been prepared in accordance withInternational Financial Reporting Standards (IFRS) as adopted by the EU. 3. Segmented Reporting Segment information in respect of the Technology business and the Systemsbusiness is presented below. At 30 September 2006 At 30 September 2005 At 31 March 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000RevenueTechnology business 10,178 5,518 14,624Systems business 10,609 7,240 20,649 20,787 12,758 35,273Operating lossTechnology business (2,582) (5,273) (8,545)Systems business 418 302 1,389 (2,164) (4,971) (7,156)Total assetsTechnology business 19,068 18,088 20,610Systems business 9,033 6,695 6,631Unallocated assets 5,514 8,527 6,384 33,615 33,310 33,625Total liabilitiesTechnology business 4,767 2,140 4,450Systems business 3,908 2,914 2,446Unallocated assets 543 576 557 9,218 5,630 7,453 4. The tax charge in the period represents tax deducted at source onoverseas earnings not recoverable in the period. No corporation tax charge hasarisen due to accumulated tax losses being in excess of the profit earned duringthe period. 5. The basic earnings per share for the financial periods reported havebeen calculated on the weighted average number of shares in issue as shown inthe table below. The diluted earnings per share has been calculated on theweighted average number of shares potentially in issue. There were nopotentially dilutive ordinary shares in issue at 30 September 2006. Half Year to Half Year to Year to 30 September 2006 30 September 2005 31 March 2006 (Unaudited) (Unaudited) (Audited) Loss attributable to shareholders (£2,299,000) (£4,944,000) (£7,360,000) Weighted average number of shares in issue 207.3m 196.0m 200.8m 6. Reconciliation of movements in shareholders' funds Half year to Half year to Year to 30 September 2006 30 September 2005 31 March 2006 (Unaudited) (Unaudited) (Audited) £'000 £'000 £'000 Equity shareholders' funds at the start of the 26,172 17,804 17,804periodMovement in revaluation reserve on adoption of IAS - 5,542 5,54239Total recognised income and expense for the period (2,300) (4,944) (7,358)attributable to equity shareholdersShare-based remuneration 229 150 327Issue of share capital 296 9,128 9,857Equity shareholders' funds at the end of theperiod 24,397 27,680 26,172 7. The financial information contained in this interim report does notconstitute statutory accounts within the meaning of Section 240 of the CompaniesAct 1985. The figures for the half year to 30 September 2006 and half year to 30September 2005 are unaudited. The consolidated statutory accounts of ImaginationTechnologies Group plc for the year ended 31 March 2006 prepared in accordancewith IFRS have been filed with the Registrar of Companies. The auditors' reporton those accounts was unqualified and did not contain any statement underSection 237 (2) or (3) of the Companies Act 1985. A copy of this Interim Report will be sent to all shareholders. Copies of thisReport and the Annual Report for 2006 can be obtained from ImaginationTechnologies Group plc, Imagination House, Home Park Estate, Kings Langley,Hertfordshire WD4 8LZ. Telephone: 01923 260511. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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