23rd Feb 2009 13:00
Ultrasis plc ("Ultrasis" or the "Company")
Interim results for the six months ended 31 January 2009
Highlights
Revenue of £1,933,000, representing growth of 86% for the period.
Profit before tax of £400,000, the first in the Group's history.
Deferred revenue of £3,135,000 an increase of 60% over the position last year (2008: £1,955,000).
Debt free with cash at bank of £1,646,000 (2008: £1,002,000).
Commenting, Nigel Brabbins, Chief Executive, said:
These results reaffirm Ultrasis' position as the leading provider of CCBT (computer delivered cognitive behavioural therapy) to the healthcare market and continue to demonstrate the company's potential for strong, profitable and sustainable growth based on a robust, renewable income stream. These results vindicate the strategy of dedicating key resource to ensure successful implementation of Beating the Blues (BTB), Ultrasis' NICE (National Institute for Health and Clinical Excellence) approved treatment for mild and moderate depression with NHS customers. While continuing to focus on utilisation of BTB across the NHS and widening its applications, we will further extend our retail offering with additional products and services through The Wellness Shop portal. We will also focus increasingly on growing the market internationally for these and our core product, Beating the Blues.
Further information:
Ultrasis plc:
|
Nigel Brabbins, Chief Executive Gerald Malone, Chairman |
+44 (0) 20 7566 3900 |
|
www.ultrasis.com |
JBP Public Relations
|
Karen White/Sarah Rice |
+44 (0) 117 907 3400 |
FinnCap, Nominated Adviser and Joint Broker
|
Geoff Nash |
+44 (0) 20 7600 1658 |
|
www.jmfinncapitalmarkets.com |
Marshall Securities, Joint Broker:
|
John Webb |
+44 (0) 20 7490 3788 |
ULTRASIS PLC
Interim report for the six months ended 31 January 2009
Statement from Chairman and Chief Executive
We are pleased to report a maiden profit before tax of £400,000, the first in the Group's history, confirmation of the Company's continued positive progress. Revenue growth remains strong at 86% with deferred revenue of £3,135,000 (2008: £1,955,000), reflecting sustained high renewal levels and increased new business for our core product, Beating the Blues (BTB). BTB is demonstrating clearly its effectiveness as the leading CCBT treatment for mild to moderate depression. These results have particular significance given the current severe economic climate, highlighting the strength of and growing need for the company's products in a recessionary market.
The relationship between physical and mental wellbeing is increasingly acknowledged by the medical profession. We took the opportunity on 18th December 2008 to enhance our product and service offering by acquiring GetFit Technologies and adding its award winning range of physical wellness programmes to our market leading emotional wellbeing products, providing enhanced opportunities to further penetrate existing markets and address new ones.
Beating the Blues
As can be seen by viewing the Primary Care Trust (PCT) map of England on www.Ultrasis.com, an increasing number of PCTs are taking up Beating the Blues. Increasing numbers of PCTs are complying with national policy to make BTB available for all patients who require it and implementing BTB for the treatment of their population. The level of uptake in many PCTs, however, falls well below the need identified by the National Institute for Health and Clinical Excellence (NICE) resulting in a "postcode lottery". Norman Lamb MP has recently tabled an Early Day Motion (EDM) in the House of Commons to raise this issue with other parliamentarians in an effort to ensure Government compliance with its own stated policy - to provide CCBT to all patients who need it.
Financial highlights
We are pleased to report a profit before tax of £400,000 (2008: loss of £200,000), the first in the Group's history.
In the six months ended 31 January, 2009, recognised revenue from ordinary operating activities grew 86% to £1,933,000 from £1,038,000, in the same period last year. At 31 January 2009 deferred income, comprising invoiced amounts for services to be rendered in future periods, totalled £3,135,000 (31 January 2008: £1,955,000).
Receivables stand at £2,882,000 compared to £1,373,000 in 2008, a result of several large contracts with payment terms spanning the 31 January 2009 balance sheet date.
During the period operating expenses increased by 49% on the same period last year, driven primarily by increased sales and marketing efforts and the costs associated with ensuring effective implementation. During the period unbudgeted costs of £70,000 were incurred in connection with an Extraordinary General Meeting of the company called by a minority shareholder group.
On 18 December 2008 we acquired all of the share capital of GetFit Technologies. Since acquisition GetFit Technologies has contributed £46,000 of revenue and £23,000 of profit before tax to the Group's results for the period.
Having moved into profitability the Directors have reviewed the recoverability of the Group's deferred tax assets relating to past tax losses as required by International Financial Reporting Standard Guidance. Having assessed the position carefully, taken stock of the Group's current trading position and sought external professional advice, the directors have concluded there is now evidence that sufficient profits will be earned in future to set against these losses. Accordingly, deferred tax assets of £2,567,000 have been recognised in the accounts in respect of tax losses recoverable in future years. The effect of this is a one-off credit to the Income Statement for the period and an increase in the net assets of the Group. The Group's net assets at 31 January 2009 were £6,179,000 (2008: £2,624,000).
Outlook
Ultrasis has now established a firm platform in the UK's NHS market on which it will continue to build. The Group's offering, "Beating the Blues", having confirmed its effectiveness in the UK, is increasingly recognised in other markets. The Group's strategy of penetrating the broader "Wellness" sector, in which BTB plays a significant role, is now delivering revenue in UK and non UK markets. Ultrasis is following a consistent positive upward trend and, with no debt and significant cash reserves, is well positioned to capitalise on new opportunities in the domestic and international markets. There is a growing need for the Group's products, particularly in a recessionary climate where stress, anxiety and depression are increasingly common conditions and the need to address them is accepted as a policy priority. We are confident that 2009 will be another year of significant growth.
|
Nigel Brabbins Chief Executive |
Gerald Malone Non executive Chairman |
23 February 2009
CONSOLIDATED INCOME STATEMENT for the six months ended 31 January 2009
|
Six months ended 31 Jan |
Six months ended 31 Jan |
Year ended 31 Jul |
||||
|
Notes |
2009 |
2008 |
2008 |
|||
|
(unaudited) |
(unaudited) |
(audited) |
||||
|
£'000 |
£'000 |
£'000 |
||||
|
Revenue |
2 |
1,933 |
1,038 |
2,614 |
||
|
Cost of sales |
(30) |
(73) |
(230) |
|||
|
Gross profit |
1,903 |
965 |
2,384 |
|||
|
Administrative expenses |
||||||
|
- Share based payments |
(195) |
(283) |
(566) |
|||
|
- Other |
(1,328) |
(891) |
(2,188) |
|||
|
(1,523) |
(1,174) |
(2,754) |
||||
|
Operating profit/(loss) |
||||||
|
Before share based payments |
575 |
74 |
196 |
|||
|
Share based payments |
(195) |
(283) |
(566) |
|||
|
380 |
(209) |
(370) |
||||
|
Finance costs |
(2) |
(4) |
(6) |
|||
|
Finance income |
22 |
13 |
33 |
|||
|
20 |
9 |
27 |
||||
|
Profit/(loss) before taxation |
2 |
400 |
(200) |
(343) |
||
|
Taxation |
4 |
2,567 |
- |
- |
||
|
Profit/(loss) for the period |
2,967 |
(200) |
(343) |
|||
|
Profit/(loss) per share |
||||||
|
Basic profit/(loss) per share (p) |
3 |
0.198 |
(0.013) |
(0.023) |
||
|
Diluted profit/(loss) per share (p) |
3 |
0.178 |
(0.013) |
(0.023) |
||
CONSOLIDATED BALANCE SHEET as at 31 January 2009
|
31 Jan |
31 Jan |
31 Jul |
|||||
|
Notes |
2009 |
2008 |
2008 |
||||
|
(unaudited) |
(unaudited) |
(audited) |
|||||
|
£'000 |
£'000 |
£'000 |
|||||
|
Non-current assets |
|||||||
|
Intangible assets |
2,923 |
2,563 |
2,717 |
||||
|
Plant and equipment |
40 |
52 |
45 |
||||
|
Deferred tax assets |
2,567 |
- |
- |
||||
|
Total non-current assets |
5,530 |
2,615 |
2,762 |
||||
|
Current assets |
|||||||
|
Inventories |
19 |
27 |
19 |
||||
|
Trade and other receivables |
2,882 |
1,373 |
708 |
||||
|
Cash and cash equivalents |
1,646 |
1,002 |
2,036 |
||||
|
Total current assets |
4,547 |
2,402 |
2,763 |
||||
|
Current liabilities |
|||||||
|
Trade and other payables |
(763) |
(438) |
(616) |
||||
|
Deferred revenue |
(3,135) |
(1,955) |
(2,142) |
||||
|
Total current liabilities |
(3,898) |
(2,393) |
(2,758) |
||||
|
Net current assets |
649 |
9 |
5 |
||||
|
Net assets |
2 |
6,179 |
2,624 |
2,767 |
|||
|
Equity |
|||||||
|
Share capital |
1,505 |
1,478 |
1,478 |
||||
|
Share premium account |
21,282 |
21,104 |
21,104 |
||||
|
Share option reserve |
1,431 |
953 |
1,236 |
||||
|
Other reserves |
6,650 |
6,650 |
6,650 |
||||
|
Merger reserve |
2,324 |
2,324 |
2,324 |
||||
|
Foreign exchange reserve |
20 |
(28) |
(25) |
||||
|
Retained losses |
(27,033) |
(29,857) |
(30,000) |
||||
|
6,179 |
2,624 |
2,767 |
|||||
CONSOLIDATED CASH FLOW STATEMENT for the six months ended 31 January 2009
|
Six months ended 31 Jan |
Six months ended 31 Jan |
Year ended 31 Jul |
||||||
|
2009 |
2008 |
2008 |
||||||
|
(unaudited) |
(unaudited) |
(audited) |
||||||
|
£'000 |
£'000 |
£'000 |
||||||
|
Cash generated from/(used in) operations |
||||||||
|
Operating profit/(loss) |
380 |
(209) |
(370) |
|||||
|
Share based payments |
195 |
283 |
566 |
|||||
|
Depreciation charge |
10 |
12 |
19 |
|||||
|
Amortisation of capitalised development costs |
68 |
2 |
26 |
|||||
|
Decrease in inventories |
- |
- |
8 |
|||||
|
(Increase)/decrease in receivables |
(2,174) |
(444) |
221 |
|||||
|
Increase in payables |
1,140 |
495 |
861 |
|||||
|
Net cash generated from/(used in) operating activities |
(381) |
139 |
1,331 |
|||||
|
Investing activities |
||||||||
|
Interest received |
22 |
13 |
33 |
|||||
|
Investment in subsidiary |
(26) |
- |
- |
|||||
|
Development expenditure |
- |
(1) |
- |
|||||
|
Purchases of intangible fixed assets |
- |
- |
(178) |
|||||
|
Purchases of plant and equipment |
(6) |
(24) |
(27) |
|||||
|
Net cash used in investing activities |
(10) |
(12) |
(172) |
|||||
|
Financing activities |
||||||||
|
Interest paid |
(2) |
(4) |
(6) |
|||||
|
Net cash used in financing activities |
(2) |
(4) |
(6) |
|||||
|
Net (decrease)/increase in cash and cash equivalents |
(393) |
123 |
1,153 |
|||||
|
Cash and cash equivalents at beginning of period |
2,036 |
879 |
879 |
|||||
|
Effects of exchange rate changes on the balance of cash held in foreign currencies |
3 |
- |
4 |
|||||
|
Cash and cash equivalents at end of period |
1,646 |
1,002 |
2,036 |
|||||
NOTES TO THE FINANCIAL INFORMATION for the six months ended 31 January 2009
1. Accounting policies
i Basis of preparation
The annual financial statements of Ultrasis plc (the "Company") are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the EU, applied in accordance with the provisions of the Companies (Northern Ireland) Order 1986. The interim financial information has been prepared on a basis consistent with the accounting policies disclosed in the Annual Report and Accounts for the year ended 31 July 2008.
IFRS is subject to amendment and interpretation by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) and there is an ongoing process of review and endorsement by the European Commission. The financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 31 July 2009.
ii Non-statutory accounts
The financial information for the year end 31 July 2008 set out in this interim report does not comprise the Company's statutory accounts as defined by Article 248(3) (c) in Part VIII of the Companies (Northern Ireland) Order 1986.
The statutory accounts for the year ended 31 July 2008, which were prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the EU, applied in accordance with the provisions of the Companies (Northern Ireland) Order 1986, have been delivered to the Registrar of Companies in Northern Ireland. The auditors reported on those accounts; their report was unqualified and did not contain a statement under Article 245(4) of the Companies (Northern Ireland) Order 1986.
The financial information for the 6 months ended 31 January 2009 and 31 January 2008 is unaudited.
2. Segment information
The Company considers there to be only one class of business, interactive healthcare.
|
Geographical Segments |
|||||||||||||||||||
|
United Kingdom |
Rest of the World |
Group |
|||||||||||||||||
|
Jan 2009 |
Jan 2008 |
Jan 2009 |
Jan 2008 |
Jan 2009 |
Jan 2008 |
||||||||||||||
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
||||||||||||||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||||||||||||||
|
Revenue by destination: |
1,833 |
961 |
100 |
77 |
1,933 |
1,038 |
|||||||||||||
|
Profit / (loss) on ordinary activities before taxation: |
419 |
(188) |
(19) |
(12) |
400 |
(200) |
|||||||||||||
|
Assets |
9,930 |
185 |
147 |
4,832 |
10,077 |
5,017 |
|||||||||||||
|
Liabilities |
(2,617) |
(1,108) |
(1,281) |
(1,285) |
(3,898) |
(2,393) |
|||||||||||||
|
Capital additions |
6 |
24 |
- |
- |
6 |
24 |
|||||||||||||
|
Depreciation |
(10) |
(12) |
- |
- |
(10) |
(12) |
|||||||||||||
|
Amortisation |
(68) |
(2) |
- |
- |
(68) |
(2) |
|||||||||||||
|
Share based payments |
(195) |
(283) |
- |
- |
(195) |
(283) |
|||||||||||||
3. Basic and Diluted earnings per share
|
Six months ended 31 Jan |
Six months ended 31 Jan |
Year ended 31 Jul |
||||
|
2009 £'000 |
2008 £'000 |
2008 £'000 |
||||
|
(unaudited) |
(unaudited) |
(audited) |
||||
|
Profit/(loss) |
||||||
|
Profit/(loss) for the purposes of basic profit/(loss) per share being profit/(loss) for the period attributable to equity shareholders |
2,967 |
(200) |
(343) |
|||
|
Number of shares |
||||||
|
Weighted average number of ordinary shares for the purposes of basic profit/(loss) per share |
1,496,668,641 |
1,478,070,955 |
1,478,070,955 |
|||
|
Weighted average number of ordinary shares for the purposes of diluted profit/(loss) per share |
1,670,871,655 |
1,478,070,955 |
1,478,070,955 |
The calculation of diluted alternative earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options.
4. Taxation:
i Tax credit
The tax credit for the period comprises:
|
Six months ended 31 Jan 2009 |
Six months ended 31 Jan 2008 |
Year ended 31 Jul 2008 |
|||
|
(unaudited) £'000 |
(unaudited) £'000 |
(audited) £'000 |
|||
|
Deferred tax |
2,567 |
- |
- |
ii Factors affecting tax charge for the current period
The tax assessed for the period is lower than that resulting from applying the standard rate of corporation tax.
The differences are explained below:
|
Six months ended 31 Jan 2009 |
Six months ended 31 Jan 2008 |
Year ended 31 Jul 2008 |
|||
|
(unaudited) |
(unaudited) |
(audited) |
|||
|
% |
% |
% |
|||
|
Standard tax rate for period as a percentage of profit / (loss) |
28 |
(29) |
(29) |
||
|
Effect of: |
|||||
|
Expenses not deductible for tax purposes |
15 |
44 |
51 |
||
|
Tax losses not recognised |
22 |
28 |
46 |
||
|
Capital allowances for period greater than depreciation |
1 |
(8) |
(8) |
||
|
Utilisation of tax losses |
(66) |
(34) |
(59) |
||
|
Net effect of overseas business |
- |
(1) |
(1) |
||
|
Total tax credit rate for the year as a percentage of losses |
- |
- |
- |
Deferred tax assets of £2,567,000 have been recognised during the period (2008: £nil). £2,505,000 relates to accumulated tax losses in relation to previous trading losses and £62,000 relates to depreciation in excess of capital allowances, both of which are available for offset in future periods. Now that the Group has moved into profit the Directors consider it more likely than not that in the foreseeable future there will be suitable taxable profits against which the tax losses can be offset. Hence, in line with IFRS guidance, they are now being recognised as an asset in the accounts.
iii Factors that may affect the future tax charge
Amounts of unprovided deferred tax assets are as follows:
|
Six months ended 31 Jan 2009 |
Six months ended 31 Jan 2008 |
Year ended 31 Jul 2008 |
|||
|
£'000 |
£'000 |
£'000 |
|||
|
(unaudited) |
(unaudited) |
(audited) |
|||
|
Applicable tax rate |
28% |
28% |
28% |
||
|
£'000 |
£'000 |
£'000 |
|||
|
Trading Losses and other losses |
2,117 |
4,533 |
4,589 |
||
|
Capital Losses |
1,912 |
1,912 |
1,912 |
||
|
Depreciation in excess of capital allowances |
2 |
92 |
79 |
||
|
Fair value adjustments |
(470) |
(487) |
(487) |
||
|
3,561 |
6,050 |
6,093 |
|||
Deferred tax assets in relation to trading losses are only recognised when taxable trading profits are considered more likely than not to arise in the companies that have such losses available for future offset. Capital losses are available only to offset future capital gains realised by the relevant companies.
5. Acquisition of Getfit Technologies Ltd
On 18 December 2008 Ultrasis acquired 100% of the share capital of Getfit Technologies Ltd for a consideration of £204,925 satisfied by the issue of 26,832,303 ordinary shares in the capital of Ultrasis at 0.76 pence per share. In addition the Company incurred costs of £26,000 in relation to the acquisition.
At the date of acquisition, Getfit Technologies had net liabilities of £44,000. In line IFRS 3 requirements, the Company reviewed the fair value of Getfit Technologies' intangible assets on acquisition and considers it prudent to separately recognise £275,000 in respect of the Intellectual Property relating to Getfit Technologies' products in the accounts.
Since acquisition Getfit Technologies Ltd has contributed £46,000 of revenue and £23,000 of profit before tax to the Group's consolidated results for the period.
Related Shares:
Ultrasis Plc