22nd Sep 2008 07:00
GLOBO plc
INTERIM RESULTS FOR THE 6 MONTHS ENDED 30 JUNE 2008
Globo plc ("Globo", the "Group" or the "Company"; LSE-AIM: GBO), a leader in the Information and Communications Technology market in Greece, is pleased to announce its interim unaudited results for the 6 months ended 30 June 2008.
Key points:
These are the first interim results to be announced since Globo's Admission to AIM in December 2007.
Traditionally, the first 6 months is the slower half of the year.
Revenues increased by 76% to €7.21m (H1, 2007: €4.09m).
Profit before tax increased by 115% to €0.86m (H1, 2007: €0.40m), in line with the Company's expectations.
Solid progress achieved in all segments of the business including both public and private sectors, with the first meaningful contribution to revenue from Software as a Service.
Progress in international expansion achieved in Romania, Cyprus and Bulgaria.
Strong order intake achieved across the business with forward order book standing at €9.3m at 30 June 2008 (31 December 2007: €3.6m).
Outlook:
"The second half of 2008, traditionally the stronger trading period, has started with the benefit of a significant order book and good visibility of revenues through to the year end. We are confident of achieving good results for 2008 as a whole."
CONTACTS
|
Globo plc |
|
|
Costis Papadimitrakopoulos, Managing Director |
+30 210-646-6008 |
|
Dimitris Gryparis, Finance Director |
+30 210-646-6008 |
|
|
|
|
Bankside |
+44 20-7367-8888 |
|
Simon Bloomfield or Steve Liebmann |
|
|
|
|
|
St Helen's Capital Plc (Joint Broker) |
+44 20-7628-5582
|
|
Ruari McGirr |
|
|
|
|
|
NCB Stockbrokers Limited (Nomad & Joint Broker) |
+44 20-7071-5200 |
|
Christopher Caldwell or Jonathan Gray |
|
About Globo
GLOBO plc was admitted to AIM in December 2007. Founded in 1997 by Konstantinos Papadimitrakopoulos and headquartered in Halandri (a suburb of Athens), Globo has established itself as one of the market leaders in the Greek ICT market. It provides e-business and telecom software products and related services to the private and governmental sectors in Greece as well as developing and operating broadband wired and wireless networks. It has developed to become one of the largest e-business software and S.a.a.S. vendors in Greece. For further information please go to www.globoplc.com.
CHAIRMAN & CHIEF EXECUTIVE OFFICER'S STATEMENT
Introduction
We are pleased to present Globo's interim financial results for the six months to 30 June 2008. These results show that the momentum gained within the business in 2007 has been sustained in the first half of 2008 with strong growth in revenue, profits and order book.
As Globo's Admission to AIM was effected by way of a reverse takeover of Israeli Acquisitor I plc, the results for the six months ended 30 June 2008 are consolidated whereas the comparative numbers for the six months ended 30 June 2007 are for Globo Technologies S.A. and Profitel S.A, the principal operating businesses of the Group.
Results and Finance
Revenue for the six months to 30 June 2008 increased by 76% to €7.21 million (H1, 2007: €4.09 million) with strong growth being achieved in all segments of the business. Operating profit grew by 72% to €1.36 million (H1, 2007: €0.79 million) and an increase in the pre-tax margin to 11.9% (H1, 2007: 9.8%) resulted in profits before tax increasing by 115% to €0.86 million (H1, 2007: €0.40 million).
Reflecting the significant growth of the business, an increase in working capital resulted in net debt (excluding long-term finance leases) of €8.44 million as at 30 June 2008 (30 June 2007: €6.08 million; 31 December 2007: €4.55 million).
Operations
During the period under review, traditionally the slower half of the year, each segment of Globo's business has made solid progress.
Total revenues from software products and services (government, public and corporate sectors) increased 92% to €6.42 million (H1, 2007: €3.31 million).
Within the government and public sector, order intake was strong with a number of substantial digitalisation contracts being secured for delivery during the course of the current year. These included projects for the Greek Ministry of Mercantile Marine, the Greek Ministry of National Education and Religious Affairs and the Parliament of Greece.
Corporate sector revenues are based on Globo's suite of CITRON branded e-business applications and broadband access technologies including Internet Hotel and WiPLUS from customers such as Lambrakis Press Organization S.A., Publicis Hellas S.A., E - Shop.gr S.A., Euroxx Securities, Newsphone S.A, Angelicoussis Shipping Group, Istron Bay Hotel and Philippion Hotel. New customers such as Pfizer Hellas and Wilo Hellas have been added to the Group's clientele since the period end and will contribute to revenue in the second half of the year.
These results include the first meaningful contribution to revenue from Profitel, Globo's S.a.a.S. (Software as a Service) division at €0.16 million (H1, 2007: €nil). Although still modest, this represents a 43% increase on the S.a.a.S. revenues achieved in the second half of 2007.
During the first half of 2008, progress has been made in developing the Company's international presence. An operating subsidiary has been established in Romania. Planning for additional operating subsidiaries in Cyprus and Bulgaria is also under way. Globo has been operating in Cyprus since 2007 through a reseller network and expects to achieve a stronger market presence by forming a wholly owned operating subsidiary.
New product development continues to be given a high priority. Total investment in product and service development during the period was €2.19 million (H1, 2007: €1.71 million) which was capitalised in accordance with International Financial Reporting Standards ("IFRS"). Globo continues to invest in the development of its existing software platforms such as the Citron Business Operating System and the WiPLUS Broadband Access platform in order to enhance more functionality and to better serve our customer needs. In the meantime significant effort has been made to transform these systems to support the S.a.a.S business model which the Company is aggressively developing. This, together with establishing our technological footprint on the mobilisation of our e-Business products in order to encourage the 'ubiquitous computing' needs of modern enterprises, sets a solid cornerstone of future commercial development based on the current global market trends and customer needs.
The significant growth of the business has led to an increase in the number of employees to 103 persons (H1, 2007: 55) and the appointment of some experienced new management and business development personnel including:
Mr Sotirios Issaias: appointed as Profitel's Sales Manager in February 2008, Sotirios graduated from the Lycee Leonin and also holds degrees from the University of Indianapolis (USA) and Concordia University (Canada), and a graduate diploma from McGill University (Canada). He has been working in the telecommunications field in corporate sales in the Greek market where he has gained extensive expertise with Eurolink SA and Net One SA.
Mr Nikos Giannakakos: appointed as Value Added Services & Mobile Business Development Manager in July 2008. Nikos graduated in Computer Systems Engineering from Sussex University and holds Masters degrees from Brunel University and the National University of Finance and Economics in Greece. He has worked in the telecommunications industry since 1996, beginning his career at Epsilon Software S.A., OTE and Vodafone Greece where he led the team responsible for the commercialisation and business strategy of all mobile Value Added Services.
Mr Stathis Vovos: appointed as SaaS & Value Added Services Business Development Manager in September 2008. Stathis has a degree in Electrical Engineering from the National Technical University of Athens and an MBA from the City Business School in London. Stathis has held positions at Research International, OTE Hellas Online and Lannet Communications..
Appointment of joint broker
In June 2008, we were pleased to announce the appointment of St Helen's Capital Plc as the Company's joint broker, alongside NCB Stockbrokers Limited who continued to act as the company's Nominated Adviser and joint broker.
Strategy
Globo's stated strategy to date has been to expand its operations within the public and corporate markets in Greece and also internationally. Solid progress with these objectives has been achieved during the period. During recent months, it has become clear to the Board that Globo's investment in its proprietary technologies will offer opportunities for expanding both the scope and range of the business in the future. Our future strategy will be to fully exploit these potential opportunities.
Outlook
The strong order intake during the first half means that Globo started the second half with a forward order book of €9.3 million (31 December 2007: €3.6 million), the bulk of which is expected to be delivered during the current year. The order book currently stands at €8.5 million.
The second half of 2008, traditionally the stronger trading period, has started with the benefit of this significant order book and good visibility of revenues through to the year end. We are confident of achieving good results for 2008 as a whole.
Brett Miller Costis Papadimitrakopoulos
Chairman Chief Executive Officer
Financial Review
In the first half of 2008 the Group has produced an excellent financial performance, driven in particular by continued strong growth in software services but also reflecting strong contributions from all main business areas.
In the six months ended 30 June 2008 revenue reached €7.21 million, a 76% increase on the same period in 2007 (€4.09 million). The increase in revenue came from organic growth in both private and public sector segments of the Group.
Gross profit increased by 87% to €3.08 million (H1 2007: €1.65 million) delivering a margin of 43% (40% in 2007).
Operating profit excluding depreciation and amortization increased 56% to €3.0 million (H1 2007: €1.92 million) delivering a margin of 41% (H1 2007: 46%). Depreciation and amortization of the non-current assets reached €1.62 million (H1 2007: €1.13 million) reflecting the significant product development. Operating profit increased by 71.3% to €1.36 million (H1 2007: €0.79 million) which despite the increase of 43% in the depreciation and amortization charge, delivered an operating margin of 18.9%, slightly below the same period of 2007 (H1 2007: 19.4%).
Profit before tax reached €0.86 million, an increase of 115% over the same period of 2007 (€0.40 million).
The taxation charge for the period was €0.28 million (H1 2007: €0.06 million).
Consistent with previous accounting periods, the profits of the Group are expected to be higher in the second half of the year than the first half, due to the increased volume of sales of the Group's own products and services to large private sector customers rather than to public sector customers, producing higher profit margins for the Group.
Basic earnings per share grew by 33% to €0.004 (H1 2007: €0.003).
Globo plc's balance sheet, as at 30 June 2008, reflects a net asset position of €12.16 million. Total assets were €30.88 million (H1 2007: €19.97 million). Of total assets, €11.4 million were held in non-current assets, €16.98 million were held in inventories, trade debtors, prepayments and other current assets and €2.50 million were held in cash and cash equivalents. Total liabilities increased by 36.1% to €18.72 million.
Accounts receivables and prepayments increased by €4.93 million primarily because of the higher volume of trading and the lengthy duration of large public projects that the Group gained in the last 12 months. However, the Group expects that the majority of the outstanding amounts will be fully recovered within 2008.
Cash used in operations was €0.12 million due to the increase in receivables, while net cash used in investing activities was €2.97 million reflecting the significant investment in product development and infrastructure.
CONSOLIDATED INCOME STATEMENT
For the 6 months ended 30 June 2008
|
|
Six months ended 30 June 2008 |
Six months ended 30 June 2007 |
Year ended 31 December 2007 |
|
|
€'000 |
€'000 |
€'000 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Continuing Operations |
|
|
|
|
|
|
|
|
|
Revenue (Note 3) |
7,208 |
4,093 |
11,029 |
|
Cost of sales |
(4,124) |
(2,440) |
(5,885) |
|
|
|
|
|
|
Gross Profit |
3,084 |
1,653 |
5,144 |
|
|
|
|
|
|
Other operating income |
102 |
76 |
155 |
|
Distribution expenses |
(540) |
(298) |
(715) |
|
Administrative expenses |
(1,234) |
(619) |
(1,547) |
|
Other operating expenses |
(52) |
(18) |
(76) |
|
|
|
|
|
|
Operating Profit |
1,360 |
794 |
2,961 |
|
Finance costs (net) |
(502) |
(394) |
(858) |
|
|
|
|
|
|
Profit before Tax |
858 |
400 |
2,103 |
|
Taxation (Note 4) |
(284) |
(64) |
(101) |
|
Profit for the period/year from continuing operations attributable to the equity holdings of the parent |
574 |
336 |
2,002 |
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended 30 June 2008 |
Six months ended 30 June 2007 |
Year ended 31 December 2007 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
|
|
|
|
|
Basic earnings per share (€ per share) (Note 5 ) |
0.004 |
0.003 |
0.018 |
|
|
|
|
|
|
Diluted earnings per share (€ per share) (Note 5) |
0.004 |
0.003 |
0.018 |
CONSOLIDATED BALANCE SHEET
At 30 June 2008
|
|
As at 30 June 2008 |
As at 30 June 2007 |
As at 31 December 2007 |
|
|
€'000 |
€'000 |
€'000 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Non-Current Assets |
|
|
|
|
Property, plant and equipment |
3,711 |
3,148 |
3,339 |
|
Intangible assets |
6,508 |
5,029 |
5,508 |
|
Goodwill |
194 |
67 |
194 |
|
Deferred tax assets |
973 |
1,195 |
1,157 |
|
Other receivables |
14 |
19 |
7 |
|
Total Non-Current Assets |
11,400 |
9,458 |
10,205 |
|
|
|
|
|
|
Current Assets |
|
|
|
|
Inventories |
1,181 |
1,143 |
379 |
|
Trade receivables |
11,861 |
6,933 |
9,930 |
|
Other receivables |
171 |
87 |
84 |
|
Other current assets |
3,772 |
1,476 |
2,322 |
|
Cash and cash equivalents |
2,498 |
872 |
3,696 |
|
Total Current Assets |
19,483 |
10,511 |
16,411 |
|
|
|
|
|
|
TOTAL ASSETS |
30,883 |
19,969 |
26,616 |
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Ordinary shares |
1,781 |
3,211 |
1,781 |
|
Share premium |
3,894 |
700 |
3,894 |
|
Other reserves |
5,708 |
4,153 |
5,708 |
|
Reverse acquisition reserve |
351 |
- |
351 |
|
Translation reserve |
34 |
- |
- |
|
Retained earnings |
395 |
(1,849) |
(179) |
|
Total Equity - Capital and Reserves |
12,163 |
6,215 |
11,555 |
|
|
|
|
|
|
Non-Current Liabilities |
|
|
|
|
Borrowings |
1,950 |
1,750 |
1,500 |
|
Retirement benefit obligations |
99 |
44 |
99 |
|
Finance lease liabilities |
1,662 |
1,949 |
1,838 |
|
Provisions |
137 |
37 |
37 |
|
Total Non - Current Liabilities |
3,848 |
3,780 |
3,474 |
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
Trade and other payables |
4,375 |
3,349 |
3,548 |
|
Taxes payable |
219 |
427 |
331 |
|
Borrowings |
8,983 |
5,199 |
6,843 |
|
Accrued liabilities |
1,295 |
999 |
865 |
|
Total Current Liabilities |
14,872 |
9,974 |
11,587 |
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
30,883 |
19,969 |
26,616 |
CONSOLIDATED CASH FLOW STATEMENT
For the 6 months ended 30 June 2008
|
|
Six months ended 30 June |
Six months ended 30 June |
Year ended 31 December |
|
|
2008 |
2007 |
2007 |
|
|
€'000 |
€'000 |
€'000 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Cash Flows from Operating Activities |
|
|
|
|
Cash (used in)/generated from operations (Note 6) |
(116) |
1,195 |
1,563 |
|
Interest paid |
(523) |
(401) |
(877) |
|
Income tax paid |
(100) |
(7) |
(7) |
|
Net Cash from Operating Activities |
(739) |
787 |
679 |
|
|
|
|
|
|
Cash Flow from Investing Activities |
|
|
|
|
Acquisition of subsidiaries |
- |
(63) |
(516) |
|
Purchases of tangible and intangible assets |
(2,991) |
(2,314) |
(4,525) |
|
Sales of tangible and intangible assets |
4 |
5 |
90 |
|
(Increase)/decrease in other long term assets |
(8) |
(1) |
12 |
|
Interest received |
22 |
7 |
19 |
|
Net Cash from Investing Activities |
(2,973) |
(2,366) |
(4,920) |
|
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
Proceeds from issue of share capital |
- |
456 |
4,604 |
|
(Decrease)/increase in long term liabilities |
(75) |
6 |
(51) |
|
Increase in long term loans |
450 |
250 |
- |
|
Increase in current loans |
2,283 |
796 |
2,619 |
|
Repayments of obligations under finance leases |
(144) |
(134) |
(312) |
|
Net Cash from Financing Activities |
2,514 |
1,374 |
6,860 |
|
|
|
|
|
|
Net Increase/(Decrease) in Cash and Cash Equivalents |
(1,198) |
(205) |
2,619 |
|
|
|
|
|
|
Movement in Cash and Cash Equivalents |
|
|
|
|
Cash and cash equivalents at the beginning of the period |
3,696 |
1,077 |
1,077 |
|
Net increase/(decrease) in cash and cash equivalents |
(1,198) |
(205) |
2,619 |
|
Cash and Cash Equivalents at the End of the Period |
2,498 |
872 |
3,696 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
|
|
|
|
Shares |
|
|
Reverse |
|
|
|
|
|
Share |
Share |
to be |
Merger |
Other |
Acquisition |
Translation |
Retained |
|
|
|
Capital |
Premium |
issued |
Reserve |
Reserves |
Reserve |
Reserve |
Earnings |
Total |
|
|
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
€'000 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 January 2007 |
3,211 |
700 |
- |
- |
4,153 |
- |
- |
(2,185) |
5,879 |
|
Profit for the period |
- |
- |
- |
- |
- |
- |
- |
336 |
336 |
|
Total changes for the period |
- |
- |
- |
- |
- |
- |
- |
336 |
336 |
|
Balance as at 30 June 2007 |
3,211 |
700 |
- |
- |
4,153 |
- |
- |
(1,849) |
6,215 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 1 July 2007 |
3,211 |
700 |
- |
- |
4,153 |
- |
- |
(1,849) |
6,215 |
|
Increase in capital |
1,713 |
4,039 |
- |
1,500 |
- |
- |
- |
- |
7,252 |
|
Costs of issue |
- |
(1,266) |
- |
- |
- |
- |
|
- |
(1,266) |
|
Reverse acquisition |
(3,143) |
421 |
15 |
- |
- |
351 |
- |
- |
(2,356) |
|
Share based payments |
- |
- |
40 |
- |
- |
- |
- |
- |
40 |
|
Profit for the period |
- |
- |
- |
- |
- |
- |
- |
1,670 |
1,670 |
|
Total changes for the period |
(1,430) |
3,194 |
55 |
1,500 |
- |
351 |
- |
1,670 |
5,340 |
|
Balance as at 31 December 2007 |
1,781 |
3,894 |
55 |
1,500 |
4,153 |
351 |
- |
(179) |
11,555 |
|
Exchange differences |
- |
- |
- |
- |
- |
- |
34 |
- |
34 |
|
Profit for the period |
- |
- |
- |
- |
- |
- |
- |
574 |
574 |
|
Balance as at 30 June 2008 |
1,781 |
3,894 |
55 |
1,500 |
4,153 |
351 |
34 |
395 |
12,163 |
NOTES TO THE INTERIM FINANCIAL STATEMENTS
For the 6 months ended 30 June 2008
1 Basis of preparation
This condensed consolidated interim financial information for the 6 months ended 30 June 2008 has been prepared in accordance with IAS 34 'Interim financial reporting'. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2007, which have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union.
The financial information contained in this report does not constitute statutory accounts as defined by section 240 of the Companies Act 1985.
The 2008 interim financial report of the Company has not been audited but has been reviewed by the Company's auditor, Littlejohn Chartered Accountants, whose independent review report is included in this Interim Report.
2 Accounting policies
The condensed consolidated interim financial information has been prepared under the historical cost convention. The same accounting policies, presentation and methods of computation are followed in this condensed consolidated financial information as were applied in the preparation of the Group's annual financial statements for the year ended 31 December 2007. Comparative figures for the year ended 31 December 2007 and the 6 months ended 30 June 2007 have been extracted from the statutory financial statements which carried an unqualified audit report, did not contain a statement under section 237(2) or (3) of the Companies Act and have been delivered to the Registrar of Companies.
This condensed consolidated financial information has been approved for issuance by the Board of Directors on 19 September 2008.
3 Segmental analysis of revenue
|
|
Six months ended 30 June |
Six months ended 30 June |
Year Ended 31 December |
|
|
2008 |
2007 |
2007 |
|
|
€'000 |
€'000 |
€'000 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Revenue from software products & services |
6,425 |
3,309 |
9,428 |
|
Revenue from telecom services |
157 |
- |
110 |
|
Revenue from sales of third party goods |
626 |
784 |
1,491 |
|
|
|
|
|
|
Total |
7,208 |
4,093 |
11,029 |
Revenue is mainly derived from sales of Group's software products and services to private and public sector customers based upon contractual agreements. Sales of third party goods which are treated as a complement to the Group's software products and services are recognized according to the relevant contractual obligations.
4 Taxation
As the Group has unused tax losses no current tax charge has been provided. The charge in the period arises from movements in deferred tax and provisions for future tax in accordance with Greek Law.
5 Earnings per Share
Basic earnings per share are calculated by dividing the profit after tax attributable to equity holders by the weighted average number of ordinary shares in issue during the period.
|
|
Six months ended 30 June |
Six months ended 30 June |
Year ended 31 December |
|
|
2008 |
2007 |
2007 |
|
|
(unaudited) |
(unaudited) |
(audited) |
|
Profit attributable to equity holders of the Company (€000's) |
574 |
336 |
2,002 |
|
Weighted average number of ordinary shares in issue |
130,589,530 |
110,000,000 |
110,857,897 |
Diluted earnings per share assumes that options and warrants outstanding at 30 June 2008 were exercised at 1 July 2008, for options and warrants where the exercise price was less than the average price of the ordinary shares during the period. On this basis, the calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders divided by 131,089,530 (six months ended 30 June 2007:110,500,000; year ended 31 December 2007:11,357,897) ordinary shares.
6 Consolidated Cash used in Operations
|
|
Six months ended 30 June |
Six months ended 30 June |
Year Ended 31 December |
|
|
2008 |
2007 |
2007 |
|
|
€'000 |
€'000 |
€'000 |
|
|
(unaudited) |
(audited) |
(audited) |
|
Profit for the period before tax |
858 |
400 |
2,103 |
|
Adjustments for: |
|
|
|
|
Depreciation of property, plant and equipment |
343 |
236 |
483 |
|
Amortisation of intangible assets |
1,272 |
893 |
2,057 |
|
Share-based payments |
- |
- |
40 |
|
Work in progress |
(961) |
(639) |
(203) |
|
Recognition of government grants |
(102) |
(23) |
(71) |
|
Exchange differences |
34 |
- |
- |
|
Interest income/expenses |
502 |
394 |
858 |
|
Adjustments for changes in working capital |
|
|
|
|
Decrease in inventory |
158 |
456 |
784 |
|
Increase in trade receivables |
(2,018) |
(606) |
(3,516) |
|
Increase in other current assets |
(1,450) |
(1,108) |
(1,954) |
|
Increase/(decrease) in liabilities (except bank and tax) |
1,360 |
1,544 |
1,430 |
|
Decrease in tax liabilities |
(112) |
(352) |
(448) |
|
|
|
|
|
|
Cash (used in) / generated from Operations |
(116) |
1,195 |
1,563 |
7 Property, plant and equipment
During the period the Group spent €719,000 on IT equipment and fixtures & fittings for its additional office premises in Athens, Greece.
8 Intangible assets
During the period the Group spent €2,272,000 on licences and software development.
9 Related Party Transactions
a. Profitel Communications S.A. ("Profitel")
In the first half of 2008, Globo Technologies S.A. realized sales to Profitel S.A. for the Wiplus service amounting to €99,657 (30 June 2007 - €71,674). Globo Technologies received €3,000 from Profitel for office rent. Additionally Globo Technologies S.A. has bought telephony, internet bandwidth services, Wiplus network services as well as related support communication services from Profitel at a total value of €103,075 (30 June 2007 - €2,032). The outstanding debtor balance at 30 June 2008 was €564,530 (30 June 2007 - €258,776). There is no outstanding creditor balance at 30 June 2008 between Globo Technologies S.A. and Profitel (30 June 2007 - €17,981).
b. 3nSold S.A.
Mr Costis Papadimitrakopoulos and his wife hold 27.5% of 3nSold S.A. ("3nSold"). In first half of 2008, there were no transactions between the 3nSold and the Group (30 June 2007 - €Nil). The outstanding debtor balance at 30 June 2008 was €90,222 (30 June 2007 - €86,189).
c. Globo Technologies S.A.
In the first six months of 2008 Globo plc provided consultancy services to Globo Technologies S.A for a total value of €20,000. The outstanding debtor balance at 30 June 2008 was €447,981.
10 Post Balance Sheet Events
No material events have occurred after the balance sheet date.
Independent Review Report to Globo Plc
Introduction
We have been engaged by Globo Plc to review the condensed set of Financial Statements in the half-yearly financial report for the six months ended 30 June 2008 which comprises the consolidated income statement, consolidated balance sheet, consolidated statement of changes in equity, consolidated cash flow statement and related condensed notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the AIM Rules for Companies.
The annual Financial Statements of the Group are prepared in accordance with IFRS as adopted by the European Union. The condensed set of Financial Statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of Financial Statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with the International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of Financial Statements in the half-yearly financial report for the six months ended 30 June 2008 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the AIM Rules for Companies.
Littlejohn
Chartered Accountants and Registered Auditors
19 September 2008
Related Shares:
GBO.L