30th Sep 2009 07:00
30th September 2009
ServicePower Technologies plc
("ServicePower" or the "Company")
Interim Results
ServicePower (AIM:SVR), a market leader for outsourced service and field management, announces its interim results for the period ended 30 June 2009.
Financial Highlights
Revenues increased by 18% to £9.4 million (H1 2008: £8.0 million)
Gross profit increased by 17% to £3.6 million (H1 2008: £3.1 million)
Loss before tax increased to £2.0 million (H1 2008: £0.3 million) reflecting one-off restructuring costs and foreign exchange losses
Adjusted loss before tax* £0.6 million (H1 2008: £0.3 million)
Cash balance at 30 June 2009 of £3.5 million (30 June 2008: £1.0 million and 31 December 2008: £3.9 million due to the fundraising of £5.5 million September 2008).
*Adjusted for one-off restructuring costs of £0.1m (2008: nil) and foreign exchange loss of £1.3 million (2008: £0.01m).
Operational Highlights
Sales focused strategy resulted in new contract wins including Marsh Consumer Connexions, E.ON, ARINC Managed Services, SGS and a major US third party warranty provider.
Strategic restructuring completed resulting in significant future savings.
Established several new partnerships including Guidewire Software, InfoQuest, eaga plc and a US-based parts replacement company.
Launched ServicePower Asia Pacific post period end to meet growing market demand in Australia and New Zealand.
Mark Duffin, CEO, ServicePower said, "This half was a period of evolution and re-focusing for ServicePower. Recessionary pressures caused the Board to initiate, and complete post 30 June 2009, a substantial restructuring programme which is expected to result in considerable cost savings for the Company and a more suitable cost base going forward.
"We significantly extended our market reach in the period through the signing of a number of new partnerships. This, in conjunction with our reinvigorated sales and marketing focus, has led to solid improvements in our future pipeline and we are delighted to report wins during the period with such well known companies as E.ON and SGS.
"We continue to believe that we offer a unique proposition within the outsourced services industry, a view which is being supported by these contract wins and we therefore look forward to the future with optimism."
For further information, please contact:
|
ServicePower Technologies PLC |
KBC Peel Hunt Ltd |
ICIS |
|
Tel: +1 410 571 6333 |
Tel: 020 7418 8900 |
Tel: 020 7651 8688 |
|
Mark Duffin, Chief Executive Officer |
Matt Goode |
Tom Moriarty |
|
|
Oliver Stratton |
Bob Huxford |
About ServicePower
ServicePower, publicly traded on the AIM market operated by the London Stock Exchange (AIM:SVR), allows companies to locate their employed field resources in the right geography, ensure they have the right mix of skills, and outside this geography create a network of independent, authorised service contractors whose costs are efficiently managed by our sophisticated warranty management software. The schedules and routes for both the employed field resources and the independent servicers are optimised by ServicePower's technology to ensure the right balance between the cost of operations and ensuring customers receive a superior service experience.
Joint Statement of the Chairman and Chief Executive
Introduction
The first half of 2009 was a highly constructive period for ServicePower in terms of organisational changes as the Company commenced a wide-reaching but successful cost-cutting and restructuring programme. This restructuring was expedited in response to the economic downturn, the consequence of which being that all overheads will now be covered by existing contracted business.
The strategy moving forward is to concentrate efforts on sales and marketing to take advantage of the growing opportunities that ServicePower is witnessing within the field-services markets. To that end the Company has significantly increased its partnership programme and the Board believes ServicePower is well positioned to capitalise on the market opportunity ahead.
Financial Review
Total revenue for the 6 months increased by 18% to £9.4 million (H1 2008: £8.0 million). Within this, revenue derived from service provision remained static at £4.4 million (H1 2008: £4.4 million) as a consequence of recessionary pressures, particularly within the retail sector in the US, resulting in fewer service warranties being sold to consumers. Software licence and consultancy revenues however, increased by 41% to £5.0 million (H1 2008: £3.6 million) due to two major contracts, E.ON in the UK and a major retailer in the US.
A breakdown of revenue from services is as follows:
|
H1 2009 |
H1 2008 |
|
|
£ million |
£ million |
|
|
Hosting / SaaS |
1.5 |
1.2 |
|
Operations US |
1.6 |
2.0 |
|
Operations UK |
1.3 |
1.2 |
|
Total |
4.4 |
4.4 |
A breakdown of software solutions revenue is as follows:
|
H1 2009 |
H1 2008 |
|
|
£ million |
£ million |
|
|
Licences |
1.7 |
1.9 |
|
Implementation / Support |
2.9 |
1.6 |
|
Mobility |
0.4 |
0.1 |
|
Total |
5.0 |
3.6 |
Gross profit for the period increased at a similar rate to revenue, up by 17% to £3.6 million (H1 2008: £3.1 million) such that the gross margins remained steady at 38%.
The total loss before tax increased to £2.0 million from a loss of £0.3 million in H1 2008. This increase includes a reported loss on currency translation of £1.3 million (2008: £0.01 million) due to an unfavourable movement in the dollar exchange rate. Also included is a one-off cost of £0.1 million relating to the restructuring.
The underlying loss before tax* was £0.3 million greater than in the same period last year. This resulted from an increased cost base following the recruitment of additional sales and marketing staff in 2008.
However, the restructuring programme commenced during this period is expected to remove £2.4 million of annual staff costs from the cost base from Q4 2009 onwards..
* underlying loss before tax refers to loss before tax adjusted for a foreign exchange translation loss of £1.3m (2008: £0.01m) and one-off exceptional items of £0.1m (2008: nil).
The Company continued to enhance the functionalities of its product range and introduced ServiceStore post period end, a service which provides independent servicers on the ServicePower network with access to discounted products and services critical to their business needs. In total ServicePower invested £0.8 million in R&D during H1 2009 (H1 2008: £1.2 million).
The basic and diluted loss per share for the year was 1.06p (H1 2008: loss per share of 3.2p).
Cash balances were £3.5 million at 30th June 2009 compared to £1.0 million at 30th June 2008 Cash balances at 31st December 2008 were £3.9 million due to the fundraising of £5.5 million in September 2008.
The directors do not recommend the payment of a dividend at this time.
Operational Review
Restructuring
ServicePower executed a wide-reaching restructuring programme during the period. This had long been deemed necessary by the Board but the scale of the implementation of these changes had previously proved restrictive. However, the prior restructuring and fund-raising in 2008 gave ServicePower the resources required to see the changes through and this, coupled with the need to react to recessionary markets, expedited the process.
The restructuring was essentially a cost-cutting exercise involving the reduction of staff numbers from 136 at the start of 2009 to 89 by the end of Q3 2009. Some redundancies were made in the first half although a number of staff will remain on board until the end of Q3 owing to contractual obligations. As a result of the staff cuts a level of management has been removed in some areas and a pay review, also implemented during the period, resulted in a number of salary reductions.
Such an extensive restructuring would not have been possible were it not for the strength and completeness of the Company's product set. Over 200 man years has been invested into ServicePower's software. The development teams will take care of upgrades and maintenance; while any customer paid-for functionality will be produced in partnership with an outsourced development centre. The customer support team, unaffected by the cost cutting, will remain in-house.
Furthermore, as the vast majority of the Company's future revenues are now SaaS or maintenance based, a lower level of resources is required to cover the delivery of our services.
Associated redundancies accounted for approximately £0.1 million of one-off costs in H1 2009 and, although some redundancies were made in the first half, the consultation process extended into Q3 with the majority of the terminations occurring in that quarter. As a result full year 2009 results are expected to be impacted by a one-off cost of approximately £0.6m. In actual terms cost savings resulting directly from staff cuts are expected to equate to approximately £2.4 million per annum from the beginning of Q4 2009, and the restructuring is expected to make further related cost-savings possible.
Partnerships and Customers
The majority of the Company's sales are now partner-led, utilising participants in the service industry to extend ServicePower's market reach and further complement in-house sales. Significant progress has been made during the half year in strengthening the partnership channel with the signing of several new agreements, including Guidewire Software, Point X, Jigsaw Business Networks, Infoquest, eaga plc and a US-based parts replacement company.
These partnerships are already resulting in an increased level of lead generation and we are confident will provide the Company with a solid pipeline of opportunities in the second half and into the coming years.
Post period end ServicePower has further extended its global reach through the launch of ServicePower Asia Pacific targeting the Australia and New Zealand markets. The Company has seen significant opportunities in these markets and will look to further overseas expansion where similar opportunities can be identified.
ServicePower's sales and marketing focus continues to produce results with 5 new customers signed in the first half of 2009 (H1 2008: 3), including Marsh Consumer Connexions, E.ON, ARINC Managed Services, SGS and a major US third party warranty provider. Contract wins were across all of ServicePower's product and solutions set, demonstrating the quality of the Company's portfolio of offerings.
Possible Offer
On 4th August it was confirmed by the Board of ServicePower that an expression of interest in an acquisition of ServicePower had been received. The expression of interest was deemed at a level below that at which the Board would consider recommending to shareholders. The potential bidder is reconsidering its position and a further announcement will be made as and when appropriate.
Board & Management changes
In July 2009 Nan Kreamer stepped down as Interim CFO. As announced this morning in a separate release, Sally Gillings, previously Group Financial Controller, has been appointed to the Board as Finance Director with immediate effect. Based in ServicePower's Stockport office in the U.K., Sally is responsible for overseeing all financial aspects of the Company. She has over 20 years' experience as a senior financial officer for both private and publicly-held companies, having worked for ServicePower for 8 years. Her first-hand experience and knowledge of the Company will therefore be of great value to ServicePower in driving forward the new, more financially efficient business.
The Company now has a global executive team consisting of CEO, Global Sales Director, Global Operations Director and Finance Director.
Outlook
ServicePower signed a number of new partnerships during the period, strengthening the Company's partner-led sales model. This, in conjunction with an increased focus on sales and marketing, has led to improvements in the future pipeline. In addition, the Company initiated during the period a substantial restructuring programme which was completed in Q3 2009 in response to the economic downturn which is expected to result in considerable cost savings and a more appropriate cost base going forward.
Lindsay Bury, Chairman Mark Duffin, CEO 30th September 2009
ServicePower Technologies plc
Condensed consolidated income statement for the six months ended 30 June 2009
|
Restated |
Restated |
|||
|
Unaudited |
Unaudited |
Audited |
||
|
6 months to |
6 months to |
12 months to |
||
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
Note |
£'000 |
£'000 |
£'000 |
|
|
Revenue - software solutions |
3 |
5,033 |
3,580 |
6,536 |
|
- outsourcing services |
3 |
4,396 |
4,426 |
9,102 |
|
Total revenue |
9,429 |
8,006 |
15,638 |
|
|
Cost of sales |
(5,825) |
(4,914) |
(10,038) |
|
|
Gross profit |
3,604 |
3,092 |
5,600 |
|
|
Administrative expenses - other expenses |
(4,230) |
(3,325) |
(8,088) |
|
|
- foreign exchange |
||||
|
(loss)/profit |
(1,293) |
(12) |
3,060 |
|
|
(5,523) |
(3,337) |
(5,028) |
||
|
Total (loss)/profit from operations |
(1,919) |
(245) |
572 |
|
|
Investment revenue |
1 |
9 |
50 |
|
|
Finance costs |
(91) |
(49) |
(69) |
|
|
(Loss)/profit before taxation |
(2,009) |
(285) |
553 |
|
|
Taxation |
4 |
- |
- |
295 |
|
(Loss)/profit for the period |
(2,009) |
(285) |
848 |
|
|
Pence |
Pence |
Pence |
||
|
(Loss)/profit per share |
||||
|
Basic |
5 |
(1.06p) |
(3.2p) |
2.4p |
|
Diluted |
5 |
(1.06p) |
(3.2p) |
2.2p |
All amounts relate to continuing activities.
ServicePower Technologies plc
Condensed consolidated statement of comprehensive income for the six months ended 30 June 2009
|
Unaudited |
Unaudited |
Audited |
||
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
£'000 |
£'000 |
£'000 |
||
|
Exchange differences on translation of |
||||
|
foreign operations |
908 |
13 |
(2,314) |
|
|
Net income/(loss) recognised directly in equity |
908 |
13 |
(2,314) |
|
|
(Loss)/profit for the period/year |
(2,009) |
(285) |
848 |
|
|
Total comprehensive income for the |
||||
|
for the period/year |
(1,101) |
(272) |
(1,466) |
ServicePower Technologies plc
Condensed consolidated statement of changes in equity for the six months ended 30 June 2009
|
Unaudited |
Unaudited |
Audited |
|
|
6 months to |
6 months to |
12 months to |
|
|
30 June |
30 June |
31 December |
|
|
2009 |
2008 |
2008 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Called-up share capital |
|||
|
At beginning of period/year |
9,926 |
8,926 |
8,926 |
|
Shares issued during the period/year |
- |
- |
1,000 |
|
At end of period/year |
9,926 |
8,926 |
9,926 |
|
Share premium account |
|||
|
At beginning of period/year |
18,626 |
15,206 |
15,206 |
|
Shares issued during the period/year |
- |
- |
3,420 |
|
At end of period/year |
18,626 |
15,206 |
18,626 |
|
Share scheme reserve |
|||
|
At beginning of period/year |
478 |
458 |
414 |
|
Charge for the period/year |
39 |
- |
64 |
|
At end of period/year |
517 |
458 |
478 |
|
Exchange translation reserve |
|||
|
At beginning of period/year |
(1,971) |
343 |
343 |
|
Exchange differences on translation of overseas |
|||
|
operations in the period/year |
908 |
13 |
(2,314) |
|
At end of period/year |
(1,063) |
356 |
(1,971) |
|
Equity reserve |
|||
|
At beginning of period/year |
13 |
- |
- |
|
Charge for the period/year |
- |
- |
13 |
|
At end of period/year |
13 |
- |
13 |
|
Merger reserve |
|||
|
At beginning and end of period/year |
(3,008) |
(3,008) |
(3,008) |
|
Retained earnings deficit |
|||
|
At beginning of period/year |
(18,939) |
(19,787) |
(19,787) |
|
(Loss)/profit for the period/year |
(2,009) |
(285) |
848 |
|
(20,948) |
(20,072) |
(18,939) |
ServicePower Technologies plc
Condensed consolidated balance sheet at 30 June 2009
|
Unaudited |
Unaudited |
Audited |
||
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
Assets |
£'000 |
£'000 |
£'000 |
|
|
Non current assets |
||||
|
Intangible assets |
1,397 |
1,392 |
1,770 |
|
|
Property, plant and equipment |
227 |
205 |
317 |
|
|
1,624 |
1,597 |
2,087 |
||
|
Current assets |
||||
|
Inventories |
52 |
42 |
65 |
|
|
Finance lease receivables |
- |
255 |
- |
|
|
Trade and other receivables |
2,958 |
3,830 |
4,808 |
|
|
Cash and cash equivalents |
3,498 |
1,019 |
3,956 |
|
|
Derivative financial instrument |
- |
1,800 |
- |
|
|
6,508 |
6,946 |
8,829 |
||
|
Total assets |
8,132 |
8,543 |
10,916 |
|
|
Current liabilities |
||||
|
Trade and other payables |
(1,249) |
(2,334) |
(2,674) |
|
|
Deferred revenue |
(1,591) |
(1,463) |
(1,942) |
|
|
Other creditors |
(83) |
(80) |
(120) |
|
|
Short term loan liability |
- |
(2,800) |
- |
|
|
Convertible loan note |
(1,146) |
- |
(1,055) |
|
|
Total liabilities |
(4,069) |
(6,677) |
(5,791) |
|
|
Net assets |
4,063 |
1,866 |
5,125 |
|
|
Equity |
||||
|
Share capital |
9,926 |
8,926 |
9,926 |
|
|
Share premium account |
18,626 |
15,206 |
18,626 |
|
|
Share scheme reserve |
517 |
458 |
478 |
|
|
Exchange translation reserve |
(1,063) |
356 |
(1,971) |
|
|
Equity reserve |
13 |
- |
13 |
|
|
Other reserve |
(3,008) |
(3,008) |
(3,008) |
|
|
Retained earnings |
(20,948) |
(20,072) |
(18,939) |
|
|
Total Equity |
4,063 |
1,866 |
5,125 |
The interim statements were approved by the Board of Directors and authorised for issue on 30 September 2009.
They were signed on its behalf by:
M Duffin
Director
ServicePower Technologies plc
Condensed consolidated cash flow statement for the six months ended 30 June 2009
|
Note |
Unaudited |
Unaudited |
Audited |
|
|
6 months to |
6 months to |
12 months to |
||
|
30 June |
30 June |
31 December |
||
|
2009 |
2008 |
2008 |
||
|
£'000 |
£'000 |
£'000 |
||
|
Net cash flows used in operating activities |
6 |
(264) |
(1,442) |
(3,165) |
|
Investing activities |
||||
|
Interest received |
1 |
9 |
50 |
|
|
Purchases of property, plant and equipment |
(69) |
(68) |
(223) |
|
|
Expenditure on intangible assets |
- |
- |
(128) |
|
|
Receipt from sale of tangible fixed assets |
- |
- |
7 |
|
|
Net cash used in investing activities |
(68) |
(59) |
(294) |
|
|
Financing activities |
||||
|
Proceeds on issue of shares |
- |
- |
4,420 |
|
|
New short term loan |
- |
1,000 |
1,000 |
|
|
Net cash received from financing activities |
- |
1,000 |
5,420 |
|
|
Net (decrease)/increase in cash and cash |
||||
|
equivalents |
(332) |
(501) |
1,961 |
|
|
Cash and cash equivalents at beginning of |
||||
|
period/year |
3,956 |
1,520 |
1,520 |
|
|
Effect of exchange rate changes |
(126) |
- |
475 |
|
|
Cash and cash equivalents at end of |
||||
|
period/year |
3,498 |
1,019 |
3,956 |
ServicePower Technologies plc
Notes to the condensed set of financial statements for the six months ended 30 June 2009
1. General information
The interim report has been prepared on the basis of the accounting policies set out in the Group's financial statements for the year ended 31 December 2008 with the exception of IAS 1 Presentation of Financial Statements and IFRS 8 Operating Segments. The financial information set out in this document does not constitute statutory financial statements within the meaning of section 240 of the Companies Act 1985. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The report was unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985.
The half-yearly report has not been audited or reviewed by the Company's auditors.
2. Accounting policies
The annual financial statements are prepared in accordance with IFRS as adopted by the European Union. With the exception of the two changes below, the same accounting policies and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest audited financial statements for the year ended 31 December 2008 and published by the Group on 26 March 2009.
In the current financial year, the Group has adopted International Financial Reporting 8 "Operating Segments" and International Accounting Standard 1 "Presentation of Financial Statements" (revised 2007).
Upon adoption of IFRS 8, there have been no changes to the segments reported in the financial statements. However, there has been a change in the allocation of expenses between cost of sales and administrative expenses, to ensure consistency with the manner in which costs are allocated and reported to the Board and Chief Executive.
IAS 1 (revised) requires the presentation of a statement of changes in equity as a primary statement, separate from the income statement and statement of comprehensive income. As a result, a condensed consolidated statement of changes in equity has been included in the primary statements, showing changes in each component of equity for each period presented.
Going concern
As disclosed on page 2, a significant portion of cash receipts comes from the sale of large software licences. The signing of contracts by large corporate customers can be difficult to predict due to long procurement cycles and therefore there is uncertainty in forecasting the timing and quantum of cash receipts from these customers.
During the period, the Group has continued its Service Operations business which provides a regular revenue stream and cash funding to the Group. During the period the Group commenced a wide- ranging cost cutting programme in order to conserve cash.
In addition, in the prior year, it raised £5.4 million of cash, net of expenses, through the issue of shares and convertible loan notes to strengthen the Group's financial position and enable it to expand its operations. At 30 June 2009 the Group had net assets of £4,063,000 including £3,498,000 of cash and cash equivalents (31 December 2008 - net assets of £5,125,000 including £3,956,000 of cash and cash equivalents).
Based on current sales orders and opportunities, expenditure forecasts and the Group's current cash balance the directors consider it appropriate to prepare the Group's financial statements on the going concern basis.
3. Business segments
In prior periods, segment information reported externally was analysed on the basis of the Group's business streams namely, software licences which provide scheduling solutions and service operations which provides claims and despatch processing in the consumer electronics market. This method of segment analysis is also used to report to the Board and the Chief Executive.
Segment information about these businesses is presented below:
|
Unaudited six months ended |
Software |
Outsourcing |
Group |
|
30 June 2009 |
Solutions |
services |
Total |
|
2009 |
2009 |
2009 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Revenue from external sales |
5,033 |
4,396 |
9,429 |
|
Segment profit |
1,801 |
406 |
2,207 |
|
Central administration costs - other |
(2,833) |
||
|
Foreign exchange (loss)/gain on translation |
(1,293) |
||
|
Total central administration costs |
(4,126) |
||
|
Investment income |
1 |
||
|
Finance costs |
(91) |
||
|
Loss before tax |
(2,009) |
||
|
Taxation |
- |
||
|
Loss after tax |
(2,009) |
|
Unaudited six months ended |
Restated |
||
|
30 June 2008 |
Software |
Outsourcing |
Group |
|
Solutions |
Services |
Total |
|
|
2008 |
2008 |
2008 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Revenue from external sales |
3,580 |
4,426 |
8,006 |
|
Segment profit |
1,566 |
61 |
1,627 |
|
Central administration costs - other |
(1,860) |
||
|
Foreign exchange (loss)/gain on |
|||
|
translation |
(12) |
||
|
Total central administration costs |
(1,872) |
||
|
Investment income |
9 |
||
|
Finance costs |
(49) |
||
|
Taxation |
- |
||
|
(Loss) after tax |
(285) |
|
Audited twelve months ended |
Restated |
||
|
31 December 2008 |
Software |
Outsourcing |
Group |
|
Solutions |
Services |
Total |
|
|
2008 |
2008 |
2008 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Revenue from external sales |
6,536 |
9,102 |
15,638 |
|
Segment profit/(loss) |
2,540 |
(39) |
2,501 |
|
Central administration costs - other |
(4,989) |
||
|
Foreign change (loss)/gain on |
|||
|
translation |
3,060 |
||
|
Total central administration costs |
(1,929) |
||
|
Investment income |
50 |
||
|
Finance costs |
(69) |
||
|
Profit before tax |
553 |
||
|
Taxation |
295 |
||
|
Profit after tax |
848 |
The Group sells software licences to global organisations which may have lengthy procurement processes. For this reason forecasting revenue relating to these contracts is unpredictable and the cash receipts therefore uneven.
Segments assets
|
Unaudited |
Unaudited |
Audited |
|
|
6 months to |
6 months to |
12 months to |
|
|
30 June |
30 June |
31 December |
|
|
2009 |
2008 |
2008 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Software solutions |
2,154 |
2,985 |
3,581 |
|
Service operations |
2,459 |
2,734 |
3,350 |
|
Total segment assets |
4,613 |
5,719 |
6,931 |
|
Unallocated assets |
3,519 |
2,824 |
3,985 |
|
Total consolidated assets |
8,132 |
8,543 |
10,916 |
4. Taxation on loss from ordinary activities
No tax charge arises in the current period due to the losses incurred. Tax credits of £nil and £295,000 arose in the periods ended 30 June 2008 and 31 December 2008 respectively relating to research and development refunds.
5. Loss per share
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings
|
Unaudited |
Unaudited |
Audited |
|
|
6 months to |
6 months to |
12 months to |
|
|
30 June |
30 June |
31 December |
|
|
2009 |
2008 |
2008 |
|
|
£'000 |
£'000 |
£'000 |
|
|
(Loss)/profit for the purpose of basic loss per share |
(2,009) |
(285) |
848 |
|
Interest on convertible bridging loan (net of tax) |
- |
- |
46 |
|
(Loss)/profit for the purpose of diluted loss per share |
(2,009) |
(285) |
894 |
|
Number |
Number |
Number |
|
|
Restated |
|||
|
Weighted average number of ordinary shares for the |
|||
|
purpose of basic loss per share |
189,264,299 |
8,926,430 |
35,278,764 |
|
Effect of dilutive potential ordinary shares: |
|||
|
Convertible bridging loan |
- |
- |
5,489,649 |
|
Weighted average number of ordinary shares for the |
|||
|
purpose of diluted loss per share |
189,264,299 |
8,926,430 |
40,768,413 |
|
Loss per share |
|||
|
Pence |
Pence |
Pence |
|
|
Basic loss per share |
(1.06p) |
(3.2p) |
2.4p |
|
Diluted loss per share |
(1.06p) |
(3.2p) |
2.2p |
In accordance with IAS 33, the weighted average number of shares for the 6 months ended 30 June 2008 has been restated to take account of the share reorganisation which happened in September 2008.
6. Notes to the cash flow statement
|
Unaudited |
Unaudited |
Audited |
|
|
6 months to |
6 months to |
12 months to |
|
|
30 June |
30 June |
31 December |
|
|
2009 |
2008 |
2008 |
|
|
£'000 |
£'000 |
£'000 |
|
|
(Loss)/profit from continuing operations |
(1,919) |
(245) |
572 |
|
Adjustments for: |
|||
|
Amortisation of intangible assets |
222 |
155 |
383 |
|
Depreciation of property plant and equipment |
74 |
43 |
117 |
|
Bad debt expense |
- |
- |
471 |
|
Share-based payments provision |
39 |
44 |
64 |
|
Operating cash flows before movement in working |
|||
|
capital |
(1,584) |
(3) |
1,607 |
|
Decrease/(increase) in inventories |
6 |
(42) |
(65) |
|
Decrease/(increase) in receivables |
1,485 |
(1,044) |
(2,265) |
|
(Decrease) in payables |
(171) |
(353) |
(2,442) |
|
Cash consumed in operations |
(264) |
(1,442) |
(3,165) |
|
Income taxes received |
- |
- |
- |
|
Net cash used in operating activities |
(264) |
(1,442) |
(3,165) |
7. Events after the balance sheet date
During the period the Group undertook a wide-ranging cost reduction programme, this continued post period end and on completion, reduced staff numbers from 136 at the beginning of the period to 89 by the end of September 2009. Further details of the programme are given in the Chairman's statement on page 3.
Related Shares:
SVR.L