22nd Sep 2005 07:01
InterQuest Group PLC22 September 2005 InterQuest Group plc INTERIM REPORT FOR THE PERIOD ENDED 30 JUNE 20051 January 2005 30 June 2004 I am pleased to report our maiden interim results since admission to AIM on 20thMay 2005, at which time we raised £3million to enable the group to accelerateits development and grow by acquisition. Business highlights Successful flotation on AIM Several new client wins including Citigroup Acquisition of FJB (Contracts) Limited and Maxridge Limited Financial Highlights Sales up 3.6% to £12,559,000 (2004: £12,128,000) Gross profit up 2.3% to £2,318,000 (2004: £2,265,000) Operating profit up 18.6% to £637,000 (2004: £537,000) Profit before taxation up 27.7% to £576,000 (2004: £451,000) Adjusted earnings per share up 6.5% to 2.62 pence (2004: 2.46 pence) We are pleased with the progress the group has made during this period and thefirst half results are in line with expectations. Our continuing niche approachto clients ensures that we are well placed to reach our full year goals. Our positive cash position allows us to continually evaluate opportunities toacquire businesses in specialist IT sectors with a view to broadening theGroup's expertise and enhancing shareholder value. On 1st July we announced the purchase of FJB (Contracts) Ltd and MaxridgeLimited, specialist IT recruitment companies based in Wickford, Essex. Theseacquisitions reinforce the Group's range of offerings in the financial andpublic sectors. As stated when we were admitted to AIM, an interim dividend is not proposed. Gary AshworthChairman INTERQUEST GROUP PLCCONSOLIDATED PROFIT AND LOSS ACCOUNT For the period ended 30 JUNE 2005 Notes (Unaudited) (Unaudited) (Audited) 6 months ended 6 months ended 12 months ended 31 30 June 2005 30 June 2004 December 2004 £ £ £ Turnover 12,558,585 12,127,936 24,389,937 Cost of sales (10,240,746) (9,863,316) (19,860,402) Gross profit 2,317,839 2,264,620 4,529,535 Goodwillamortisation (130,590) (130,590) (261,181) Administrativeexpenses (1,550,562) (1,597,528) (3,175,212) Totaladministrativeexpenses (1,681,152) (1,728,118) (3,436,393) Operatingprofit 636,687 536,502 1,093,142 Interestpayable (60,678) (85,328) (166,266) Profit onordinaryactivitiesbeforetaxation 576,009 451,174 926,876 Tax on profiton ordinaryactivities 2 (152,911) (110,672) (240,794) Profitretained andtransferred toreserves 423,098 340,502 686,082 Earnings pershare Basic 3 2.0 pence 1.8 pence 3.5 pence Diluted 3 1.8 pence 1.8 pence 3.5 pence Adjustedearnings pershare Basic 3 2.6 pence 2.5 pence 4.9 pence Diluted 3 2.4 pence 2.5 pence 4.8 pence INTERQUEST GROUP PLC CONSOLIDATED BALANCE SHEET AT 30 JUNE 2005 Notes (Unaudited) (Unaudited) (Audited) As at 30 June As at 30 June As at 31 December 2005 2004 2004 £ £ £ Fixed assetsIntangibleassets 6 5,852,672 4,829,242 4,744,227Tangibleassets 171,645 216,338 199,023 6,024,317 5,045,580 4,943,250 Current assetsDebtors 5,558,397 4,288,425 3,617,924Cash at bankand in hand 5 1,188,678 73,502 611,239 6,747,075 4,361,927 4,229,163 Creditors:amountsfalling duewithin oneyear (4,310,899) (5,299,378) (4,538,454) Net currentassets/(liabilities) 2,436,176 (937,451) (309,291) Total assetsless currentliabilities 8,460,493 4,108,129 4,633,959 Creditors:amountsfalling dueafter morethan one year (800,000) - - Net assets 7,660,493 4,108,129 4,633,959 Capital andreservesCalled upshare capital 257,568 193,666 198,816Share premiumaccount 5,955,161 3,235,377 3,410,477Profit andloss account 1,447,764 679,086 1,024,666Equityshareholders'funds 7,660,493 4,108,129 4,633,959 INTERQUEST GROUP PLC CASH FLOW STATEMENT For the period ended 30 JUNE 2005 Notes (Unaudited) (Unaudited) (Audited) 6 months ended 6 months ended 12 months ended 30 June 2005 30 June 2004 31 December 2004 £ £ £ Net cashinflow fromoperatingactivities 4 528,639 550,290 1,480,200 Returns on investmentsand servicing offinanceInterest paid (60,678) (85,328) (166,266) Taxation - (51,382) (179,126) Capital expenditure andfinancial investmentPayments toacquiretangible fixedassets (6,047) (4,831) (22,171)Receipts fromsales oftangible fixedassets - - 3,200 (6,047) (4,831) (18,971) Acquisitions anddisposalsPurchase ofsubsidiaryundertaking inthe period 6 (400,000) - (45,743)Purchase ofsubsidiaryundertaking inthe priorperiod 6 (1,100,000) - -Net overdraftacquired withsubsidiaryundertakings (299,369) - - (1,799,369) - (45,743) Net cash(outflow)/inflow beforemanagement ofliquidresources (1,337,455) 408,749 1,070,094 FinancingIssue ofordinary sharecapital net ofexpenses 2,603,436 61,000 241,250Repayment ofshareholderloans - (262,868) (262,868)Net decreasein tradedebtor financefacilities (688,542) (381,771) (685,629) 1,914,894 (583,639) (707,247) Increase/(decrease) in cash 5 577,439 (174,890) 362,847 INTERQUEST GROUP PLC NOTES TO THE INTERIM REPORT For the period ended 30 JUNE 2005 1 BASIS OF PREPARATION The interim financial information has been prepared in accordance with theprincipal accounting policies of the Group as set out in the Group's 2004 annualreport and financial statements. The financial information set out in this report does not constitute statutoryaccounts as defined in section 240 of the Companies Act 1985. The figures forthe year ended 31 December 2004 have been extracted from the statutory accounts,which have been filed with the Registrar of Companies. The auditors' report onthose financial statements was unqualified and did not contain a statement undersection 237(2) of the Companies Act 1985. 2 TAXATION (Unaudited) (Unaudited) (Audited) 6 months ended 30 6 months ended 30 12 months ended 31 June 2005 June 2004 December 2004 £ £ £ Totaltaxation 152,911 110,672 240,794charge The charge for taxation is based upon the expected effective tax rate for theperiod of 27% (2004: 25%) on profit before tax. The expected effective tax rateis lower than the standard rate of 30% due to capital allowances exceeding bookdepreciation. 3 EARNINGS PER SHARE (Unaudited) (Unaudited) (Audited) 6 months ended 30 6 months ended 30 12 months ended 31 June 2005 June 2004 December 2004 £ £ £ For basic earningsper share Profit for thefinancialperiod 423,098 340,502 686,082 For adjusted earningsper share Profit for thefinancialperiod 423,098 340,502 686,082 Add backamortisationof goodwill 130,590 130,590 261,181 Adjustedprofit for thefinancialperiod 553,688 471,092 947,263 Weighted average Number Number Numbernumber of shares of shares of shares of shares For basicearnings pershare 21,138,063 19,140,012 19,456,539 For dilutedearnings pershare 22,892,757 19,140,012 19,805,321 4 NET CASH INFLOW FROM OPERATING ACTIVITIES (Unaudited) (Unaudited) (Audited) 6 months ended 30 6 months ended 30 12 months ended 31 June 2005 June 2004 December 2004 £ £ £ Operatingprofit 636,687 536,502 1,093,142Depreciationandamortisationcharges 167,424 157,253 319,466Increase indebtors (700,954) (697,398) (28,252)Decrease increditors 425,482 553,933 95,844Net cashinflow fromoperatingactivities 528,639 550,290 1,480,200 5 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/(DEBT) (Unaudited) (Unaudited) (Audited) 6 months ended 30 6 months ended 30 12 months ended 31 June 2005 June 2004 December 2004 £ £ £ Increase/(decrease) in 577,439 (174,890) 362,847cashin theperiodDecrease intradedebtorfinance 688,542 381,771 685,629facilitiesDecrease inshareholderloans - 262,868 262,868Movement innet debt inthe period 1,265,981 469,749 1,311,344Net debt at1 (77,303) (1,388,647) (1,388,647)January2005Netfunds/(debt)at 30 June 1,188,678 (918,898) (77,303)2005 6 ACQUISITIONS & GOODWILL Genesis Computer Resources Limited The Group paid the final deferred consideration of £1,100,000 in cash on 14thJanuary 2005 to the vendors of Genesis Computer Resources Limited, a businesspurchased in October 2003. FJB (Contracts) Limited and Maxridge Limited The Group paid £400,000 in cash after the close of business on 30th June 2005 asinitial consideration for the purchase of FJB (Contracts) Limited and MaxridgeLimited. These acquisitions were announced on 1st July 2005 and have beenconsolidated into the Group's balance sheet as at 30th June 2005. Provision has been made in the consolidated balance sheet for the maximumpotential deferred consideration of £800,000 payable in August 2006. Thedeferred consideration is payable as to five-sixths in cash and one-sixth inshares, issued at the market value at the date of payment. Professional fees of£70,817 were incurred in respect of the acquisition. The provisional fair value of the separable net assets acquired was £31,782 andthe goodwill arising on consolidation is £1,239,035. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
InterQuest Group