20th Dec 2005 07:01
Canisp PLC20 December 2005 20 December 2005 Canisp plc ("Canisp" or "the Company")Interim results for the six-month period ended 30 September 2005 Chairman's statement I present the Company's unaudited interim results for the six month period from1st April to 30th September 2005. In the period under review the Companyrecorded a loss before taxation of £244,000 (September 2004: £512,000, March2005: £3,537,000) and a loss per share of 1.27p (September 2004: 3.56p, March2005: 21.85p). No dividend is proposed. In my statement in our Annual Report and Accounts, I reported on thedisappointing performance of the Company's first acquisition, that of TheAirtime Group Limited (TAG), and explained the decision to dispose of the globalcalling card customer base which had become a significant drain on cashresources and management time. Our acquisitions of fixed line customer basesand non-geographic number services have also proved disappointing, with monthlybillings derived from the three acquisitions having been below our originalexpectation, such that group revenues have yet to reach a level capable ofsustaining net cash generation. This problem has been exacerbated by our needalso to manage significant non-trading liabilities inherited with theacquisition of TAG. Our determination to drive down our cost base has resulted in a very lean headoffice operation, and we continue to work hard to grow our customer base. Whilethis is not expected to be easy, and the sector within which we operate remainsa difficult and increasingly competitive one, we are confident that we areapproaching the task in the right way. A quick result is unlikely and themanagement team is therefore also investigating alternative approaches torecovering shareholder value. John LeatChairman 20 December 2005Consolidated summarised Profit and Loss Accountfor the six-month period ended 30 September 2005 Six month Six month Year period ended period ended ended 30 September 30 September 31 March 2005 2004 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000TurnoverContinuing operations 1,904 664 352Acquisitions - 754 2,946 1,904 1,418 3,298Discontinued operations - - 783 1,904 1,418 4,081 Operating lossContinuing operations - excluding goodwill amortisation (50) (561) (356)Goodwill amortisation (123) (84) (388) (173) (645) (744)Acquisitions - 145 188 (173) (500) (556)Discontinued operations - - (329) (173) (500) (885) Loss on sale of discontinued operations - - (2,542)Interest and similar items (71) (12) (110) Loss on ordinary activities before taxation (244) (512) (3,537)Taxation (note 2) - - -Profit loss on ordinary activities after taxation (244) (512) (3,537) and retained loss Loss per share (note 3) (1.27)p (3.56)p (21.85)p Consolidated Balance Sheetas at 30 September 2005 30 September 30 September 31 March 2005 2004 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Fixed assetsIntangible fixed assets 3,142 4,837 3,267Tangible fixed assets - 33 19 3,142 4,870 3,286 Current assetsDebtors 841 686 1,348Cash at bank and in hand - 353 43 841 1,039 1,391 Creditors: amounts falling due within one year (2,713) (2,910) (3,624) Net current liabilities (1,872) (1,871) (2,233) Total assets less current liabilities 1,270 2,999 1,053 Creditors: amounts falling due after more than one year (1,450) (32) (1,051) Net assets (180) 2,967 2 Capital and reservesCalled up share capital 185 180 182Share premium account 3,825 3,708 3,766Profit and loss account (4,190) (921) (3,946)Equity shareholders' funds (180) 2,967 2 Consolidated Cash Flow Statementfor the six-month period ended 30 September 2005 Six month Six month Year period ended period ended ended 30 September 30 September 31 March 2005 2004 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Net cash outflow from operating activities (251) (207) (246) Returns on investments and servicing of financeInterest received 1 2 8Interest paid (72) (14) (108) (71) (12) (100) Capital expenditure and financial investmentSale of tangible fixed assets 25 0 4 AcquisitionsPurchase of subsidiary undertakings - - (60)Purchase of businesses - (1,394) (2,912)Sale of customer base - - 120 0 (1,394) (2,852) Net cash outflow before financing (297) (1,613) (3,194) FinancingIssue of shares 62 1,912 1,972Share issue costs - (17) (17)New long term loans - - 1,250Capital element of hire purchase contracts (57) (66) (105) Increase in cash (292) 216 (94) Notes to the Cash Flow Statementfor the six-month period ended 30 September 2005 Six month Six month Year period ended period ended ended 30 September 30 September 31 March 2005 2004 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000 Reconciliation of net cash flow to movement in net debtIncrease in cash (292) 216 (94)Cashflow from capital element of hire purchase contracts 57 66 105Change in net debt resulting from cash flows (235) 282 11 New long term loans - - (1,250)Opening net debt (1,270) (31) (31)Closing net funds / (debt) (1,505) 251 (1,270) Six month Six month Year period ended period ended ended 30 September 30 September 31 March 2005 2004 2005 (Unaudited) (Unaudited) (Audited) £000 £000 £000Reconciliation of operating loss to net cash flows from operating activitiesOperating loss (173) (500) (885)Cashflows in respect of disposal of discontinued operation - - (145)Depreciation (4) 49 55Amortisation of goodwill 123 84 388Movement in debtors 506 (319) (826)Movement in creditors (703) 479 1,163Loss on disposal of fixed asset - - 4 Net cash flow from operating activities (251) (207) (246) Notes to the interim statement 1. The interim financial information has been prepared on the basis of theaccounting policies set out in the Report and Accounts for the Group for theyear ended 31 March 2005. The interim financial information does not constitutestatutory accounts and has been neither audited nor reviewed by the Company'sAuditors. A copy of the Group's 2005 statutory accounts has been filed with theRegistrar of Companies; the auditors' opinion on those accounts was unqualified. 2. No charge to taxation arises in view of the loss for the period. 3. The calculation of earnings per share is based on the result aftertaxation and 19,169,988 ordinary shares (period ended 30 September 2004:14,391,484, year ended 31 March 2005: 16,189,629) being the weighted averagenumber of shares in issue during the half year. The impact of share options onthe loss per share is anti-dilutive. 4. The Directors do not propose an interim dividend. 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