27th Nov 2009 07:00
27 November 2009
Electronic Data Processing PLC (EDP)
Preliminary results for the year ended 30 September 2009
EDP is an IT solution provider to the UK wholesale distribution industry and a supplier of Sales Intelligence software solutions more widely.
Highlights:
Turnover £5.84 million (2008: £6.85 million) reflects harsh economic conditions generally.
Revenue from software and services down 11%.
Strong contracted recurring software revenues maintained at same level as last year and represent 75% of total revenue.
Adjusted operating profit £707,000 (2008: £922,000), representing an underlying operating margin of 12% (2008: 13.5%).
Pre-tax profit £456,000 (2008: £1.065 million excluding profit on sale of property).
Hosting revenues represent 23% of total revenues (2008: 19%).
Redundancy programme has generated annualised savings in excess of £400,000.
Continued R&D expenditure of £1.04 million (2008: £1.19 million) in year.
Share buyback completed in April returned £6.0 million surplus cash to shareholders.
After share buyback the Group still has strong debt-free balance sheet and cash balances in excess of £2.4 million at 30 September 2009.
Final dividend maintained at 2.0p per share.
Michael Heller, Chairman of EDP, said:
"Whilst there are some initial signs of increased activity levels in the markets in which we are involved, these have not yet translated into increased levels of orders. We do not expect trading levels to significantly improve until the economy generally shows signs of sustainable improvement. However, with our latest product releases, strong recurring revenues and a lean cost base we are well positioned for the recovery in our markets."
For further information please contact:
|
Julian Wassell Chief Executive 0114 2622007 |
Toby Mountford Citigate Dewe Rogerson 020 7638 9571 07710 356611 |
www.edp.co.uk
Chairman's Statement
Group turnover for the year to 30 September 2009 was £5.84 million compared with £6.85 million last year. This reduction reflects the harsh economic conditions which have prevailed throughout the UK over the last year.
Pre-tax profit was £456,000 which compares with £1.065 million last year (excluding profit on property disposals). Adjusted operating profit, excluding non-cash IFRS charges and reorganisation costs, was £707,000 (2008: £922,000) giving an operating margin of 12% (2008: 13.5%).
Notwithstanding the overall reduction in sales, it is pleasing to note that our contracted, recurring software revenues are unchanged in absolute terms. These relate to annual software licences and hosting fees and represent 75% of total sales. Our business model is built around maintaining strong, visible recurring revenues from our software products which cover the Group's day to day cash operating costs.
The reduction in non-recurring revenues, which include initial charges for software and professional services, has resulted from customers and prospects generally delaying their discretionary IT expenditure.
We have been actively managing-down the Group's cost base over the last couple of years and this process has continued during the year under review. The substantial cost savings we have achieved have gone some considerable way to mitigate the reduced levels of non-recurring revenue and allow us to report a level of adjusted operating margin which management consider is acceptable in the current climate.
Our application hosting revenues have grown once again this year and they now represent 23% of turnover (2008: 19%).
We face an increased risk of bad debts as do most businesses at the present time and we remain focussed on cash collection and working capital management. It is encouraging to note that since 1 October 2008 we have only lost income of £6,000 per year from one customer going into administration.
Our Research and Development effort has been focussed in two areas: the delivery of our graphical distribution software application, the first release of which was available on schedule during the final quarter of the financial year; and also the browser-based version of our Vecta Sales Intelligence product which remains on schedule to be released at the end of 2009. Total R&D expenditure during the year was £1.04 million (2008: £1.19 million), all of which has been charged in the Income Statement.
During the year your Board took the decision to return approximately £6 million of surplus cash to shareholders by way of a share buyback. The tender offer to buy back 11,991,386 of the Company's shares at a price of 50p per share was completed in April and was fully subscribed. As a result of this the Company's issued share capital was reduced to 12,530,976 shares with a further 1,253,097 shares now being held in treasury.
Group net assets at 30 September 2009 were £7.0 million compared with £14.3 million at 30 September 2008. This reflects the impact of the share buyback together with a reduction of approximately £900,000 in the surplus on the Group's defined benefit pension scheme which is described more fully in the Chief Executive's statement. Even after the share buyback, the Group had cash balances in excess of £2.4 million at the year-end which reflects positive operating cash flows.
The Board is proposing to pay a final dividend of 2.0p per share, the same as last year. This gives a total for the year of 2.713p (2008: 2.713p excluding the 5p special dividend paid following the disposal of properties). If approved by shareholders, the final dividend will be paid on 7 April 2010 to those shareholders on the register at 5 March 2010. The shares will be ex-dividend on 3 March 2010.
I would like to thank all our executive directors and members of staff for their input over the year.
Whilst there are some initial signs of increased activity levels in the markets in which we are involved, these have not yet translated into increased levels of orders. We do not expect trading levels to significantly improve until the economy generally shows signs of sustainable improvement. However, with our latest product releases, strong recurring revenues and a lean cost base we are well positioned for the recovery in our markets.
Michael Heller
Chairman
26 November 2009
Chief Executive's Statement
The last 12 months have proved very challenging for the UK software sector. Many of the markets in which our customers operate have experienced severe difficulties.
Customers and prospective customers alike have experienced a shortage of available funding for capital expenditure which, coupled with restrictions on working capital facilities, has led them to defer IT expenditure which could be considered discretionary. This has affected all areas of our non-recurring revenues including extra or new software licences, software upgrades, training and consultancy services and hardware sales.
We continue to find that, where we do identify opportunities, the sales cycle is substantially longer than it was 18 months ago.
Our principal strength is the resilience of our recurring revenues. Our annual software licences and periodic software hosting services are provided to customers under contracts which typically run for 3-5 years depending on the product. These revenues, which made up 75% of our turnover in the year under review, have been unaffected by the effects of the economic situation and have remained at the same overall level as in the preceding financial year.
Our revenues remain well spread and our largest customer accounts for less than 5% of Group turnover, with our largest 10 customers accounting for no more than 23% of total revenue.
To mitigate the effects of any reduced non-recurring revenues we have proactively managed the Group's cost base. In addition to the actions we have taken over the last two years to reduce costs, we have further reduced our overall headcount from 98 at the start of the financial year to the current level of 76. This exercise has delivered annualised cost savings in excess of £400,000 for a one-off cost of £239,000. As this occurred approximately halfway through the year the effect on profit this year was broadly neutral. However, the full effect of the cost savings will be felt in the current financial year.
The reduction in employee numbers was across most areas of the business but purposely excluded our sales and marketing team where we have maintained our resource levels. The reduction in staff has not affected our ability to deliver high quality products and services to our customers and we have positioned the business so that our recurring revenues more than cover our day-to-day cash operating costs.
I would like to thank my fellow Directors and all members of staff for their hard work and commitment, particularly for the way they have addressed the tough challenges that we have had to face during the year.
Operational Review
Distribution Applications
A significant part of our R&D effort each year is expended on ensuring that our distribution applications remain up to date and meet the continually evolving needs of our customers and the marketplace. The graphicalisation of our distribution application, Quantum VS has been an important part of this process and I am pleased to confirm that it was completed on schedule at the beginning of the fourth quarter of the financial year.
Quantum VS allows us to address the needs of those existing customers within our traditional distribution application marketplace who are looking to upgrade to a fully graphicalised software application. An extensive product road-map is in place to ensure that this product includes the key features that current users of our four existing applications (Merchant, Charisma, Esprit and The Business Programme) enjoy and this will form a significant part of our R&D effort over the coming year. The product has been demonstrated to a number of customers and has received favourable reactions. We are currently part way through our first implementation of Quantum VS for an existing customer of the Group.
This product also provides us with an opportunity to address new business opportunities and our current focus is on protecting our revenues by converting those of our customers who are ready to move to the graphical product whilst also working to identify and maximise those opportunities for new business which do arise.
Vecta
Despite the challenges encountered over the last year we have increased the number of customers for Vecta, our leading Sales Intelligence product. This now stands at 120 compared with 110 at 1 October 2008.
During the year we have continued to enhance this product and I am again pleased to confirm that the latest version will be released on schedule at the end of this calendar year. Vecta 7 is fully browser-based and allows users to access their Sales Intelligence software real-time, using any device with a connection to the web including smart phones, laptops and other mobile devices.
The latest version provides an update to the look and feel of the product and provides a sound platform for further enhancements to Vecta's capabilities. We have previewed Vecta 7 to a number of current users and reactions have been very positive.
We have invested in our Vecta sales and marketing team over the last year to ensure that we are well placed to respond to the eventual recovery in our markets.
Hosting
Our dedicated hosting facility in Milton Keynes now accommodates 83 customers compared with 74 this time last year. This represents a combination of existing distribution application customers switching from a traditional licence model and new Vecta users. 23% of Group revenues are now generated using the hosting model compared with 19% last year which, despite lower turnover overall, represents an increase in absolute terms.
Hosting provides our customers with a complete outsourced package for all their hardware, operating system and software application requirements delivered through a secure internet-based service. It provides the Group with a strong, visible recurring revenue stream through the long-term contracts associated with hosting.
None of the businesses with whom we compete on a regular basis offer their own, in-house, hosting facility.
Both Quantum VS and Vecta 7 will be available using the hosting model. In the case of Vecta 7 we expect it to be the default option in order to allow our customers to maximise the benefits available from using a browser-based / "software as a service" solution.
Accordingly we expect to see the number of customers electing to use their software applications in this way continue to grow. However, it should be noted that when an existing customer switches to hosting this increase in revenue will be partially offset by a reduction in traditional software licence revenues.
Property
Four of the Group's five freehold properties are being marketed for sale or to let as they are no longer required for operational purposes. We will be able to achieve further cost savings once we have disposed of our interests. However, the market for such properties has been "stagnant" over the last year and achieving acceptable prices may still take some time.
Financial Review
Turnover for the year at £5.84 million was 14.7% down on the previous year's figure of £6.85 million. £131,000 of the decrease can be attributed to an expected decrease in hardware maintenance revenues. This is a market we are exiting and this revenue source is only expected to contribute £140,000 in the coming 12 months. We also saw a £188,000 reduction in sales of hardware, which is typically low margin, to £107,000, as customers generally avoided incurring capital expenditure. Accordingly, revenues from software and services fell by only 11%.
Contracted recurring software revenues remained at the same level as last year at £4.35 million which represents 75% of our sales for the year.
Group profit before tax under IFRS was £456,000 (2008: £1.065 million excluding profit on disposal of properties). This result is stated after a number of non-cash charges which arise under IFRS (principally amortisation of intangible assets) of £121,000, together with one-off redundancy costs of £239,000.
At the operating profit level i.e. excluding the non-cash IFRS charges, redundancy costs and interest income, our adjusted profit for the year was £707,000. This compares with £922,000 last year. This reflects our lower turnover largely offset by the significant cost savings we have achieved.
Interest income for the year was £109,000 which compares with £375,000 last year. The reduction is due to lower average cash balances following the share buyback combined with significantly lower interest rates.
The tax charge for the year was £129,000 which gives an effective tax rate of 28.3%.
Earnings per share (EPS) for the year was 1.74p which compares with a normalised EPS last year of 3.07p (excluding profit on disposal of properties).
Cash balances at 30 September 2009 were £2.4 million, a reduction of £6.3 million from 30 September 2008. The principal movements during the year were payments of £6.2 million (including costs) for the share buyback, dividends paid of £579,000 and positive operating cash flows of £542,000.
Group net assets have reduced to £7.0 million at 30 September 2009 from £14.3 million at 30 September 2008. This is principally due to the share buyback which reduced net assets by £6.2 million and a reduction in the surplus on the Group's defined benefit pension scheme recognised under IAS 19 of £871,000, net of deferred tax. Dividends, most of which were paid based on the number of shares in issue before the share buyback, exceeded retained profits by £252,000.
The reduction in the surplus in the defined benefit pension scheme arises from the significant reduction in the discount rate used to value future scheme liabilities. This discount rate is derived from the current long-term corporate bond rate which has fallen over the last year. However, even after this substantial accounting adjustment the scheme still shows a surplus on an IAS 19 basis.
At 2.0p per share, the proposed final dividend will amount to approximately £251,000. The cash dividend saved as a result of the reduction in the issued share capital following the share buyback amounts to £239,000.
Outlook
The fact that we are debt-free with strong recurring revenues, have a lack of dependency on any single customer, a low cost base and a commitment to product development should stand us in good stead. Whilst we have recently seen signs that our markets have stabilised we remain cautious but confident, given the actions we have taken and the strength of our business model, about the outlook for the coming year. We will continue to manage the business prudently whilst ensuring that we have the resources in place to deliver our latest product releases and respond to the eventual recovery in our markets.
Julian Wassell
Chief Executive
26 November 2009
|
Consolidated Income Statement |
|||||
|
for the year ended 30 September 2009 |
|||||
|
2009 |
2008 |
||||
|
£'000 |
£'000 |
||||
|
Revenue |
5,844 |
6,850 |
|||
|
Gross profit |
5,434 |
6,299 |
|||
|
Administrative expenses |
(5,087) |
(5,609) |
|||
|
Operating profit |
347 |
690 |
|||
|
Profit on sale of property |
- |
1,157 |
|||
|
Finance income |
109 |
375 |
|||
|
Profit before tax |
456 |
2,222 |
|||
|
Income tax expense |
(129) |
(390) |
|||
|
Profit for the period attributable to equity holders of the parent |
327 |
1,832 |
|||
|
Earnings per share - basic and diluted |
1.74p |
7.47p |
|||
|
|
|||||
|
Consolidated Statement of Recognised Income |
|||||
|
and Expense |
|||||
|
for the year ended 30 September 2009 |
|||||
|
2009 |
2008 |
||||
|
£'000 |
£'000 |
||||
|
Net actuarial (losses)/gains on defined benefit pension scheme |
(1,235) |
643 |
|||
|
Tax on items recognised directly in equity |
346 |
(180) |
|||
|
Net (expense)/income recognised directly in equity |
(889) |
463 |
|||
|
Profit for the period |
327 |
1,832 |
|||
|
Total recognised income and expense attributable to equity holders of the parent |
(562) |
2,295 |
|||
|
Consolidated Balance Sheet |
||||
|
at 30 September 2009 |
||||
|
2009 |
2008 |
|||
|
£'000 |
£'000 |
|||
|
Non-current assets |
||||
|
Property, plant and equipment |
6,317 |
6,491 |
||
|
Deferred tax asset |
9 |
9 |
||
|
Employee benefits |
219 |
1,429 |
||
|
Intangible assets |
638 |
781 |
||
|
7,183 |
8,710 |
|||
|
Current assets |
||||
|
Inventories |
87 |
134 |
||
|
Trade and other receivables |
1,197 |
2,193 |
||
|
Cash and cash equivalents |
2,433 |
8,734 |
||
|
3,717 |
11,061 |
|||
|
Total assets |
10,900 |
19,771 |
||
|
Current liabilities |
||||
|
Deferred income |
(2,513) |
(2,740) |
||
|
Income tax payable |
(64) |
(138) |
||
|
Trade and other payables |
(919) |
(1,694) |
||
|
(3,496) |
(4,572) |
|||
|
Non-current liabilities |
||||
|
Deferred income |
(84) |
(222) |
||
|
Deferred tax liability |
(319) |
(660) |
||
|
(403) |
(882) |
|||
|
Total liabilities |
(3,899) |
(5,454) |
||
|
Net assets |
7,001 |
14,317 |
||
|
Equity |
||||
|
Issued capital |
689 |
1,226 |
||
|
Share premium |
119 |
119 |
||
|
Capital redemption reserve |
625 |
88 |
||
|
Translation reserve |
(3) |
(3) |
||
|
Treasury shares |
(627) |
- |
||
|
Retained earnings |
6,198 |
12,887 |
||
|
Total equity attributable to equity holders of the parent |
7,001 |
14,317 |
||
|
Consolidated Cash Flow Statement |
|||||
|
for the year ended 30 September 2009 |
|||||
|
2009 |
2008 |
||||
|
£'000 |
£'000 |
||||
|
Cash flows from operating activities |
|||||
|
Profit for the period |
327 |
1,832 |
|||
|
Adjustments for: |
|||||
|
Depreciation |
238 |
254 |
|||
|
Amortisation |
143 |
170 |
|||
|
Net profit on disposal of property, plant and equipment |
(11) |
(1,166) |
|||
|
Transfer of inventory to property, plant and equipment |
(11) |
- |
|||
|
Pension (credit)/charge |
(25) |
37 |
|||
|
Finance income |
(109) |
(375) |
|||
|
Income tax expense |
129 |
390 |
|||
|
Change in inventories |
47 |
28 |
|||
|
Change in receivables |
954 |
251 |
|||
|
Change in payables |
(775) |
361 |
|||
|
Change in deferred income |
(365) |
192 |
|||
|
Cash received from operations |
542 |
1,974 |
|||
|
Interest received |
151 |
367 |
|||
|
Income taxes paid |
(198) |
(295) |
|||
|
Net cash from operating activities |
495 |
2,046 |
|||
|
Cash flows from investing activities |
|||||
|
Purchase of property, plant and equipment |
(65) |
(315) |
|||
|
Purchase of intangible assets |
- |
(27) |
|||
|
Proceeds from sale of property, plant and equipment |
23 |
2,958 |
|||
|
Net cash (used in)/generated from investing activities |
(42) |
2,616 |
|||
|
Cash flows from financing activities |
|||||
|
Repurchase of own shares |
(6,175) |
- |
|||
|
Dividends paid |
(579) |
(1,891) |
|||
|
Net cash used in financing activities |
(6,754) |
(1,891) |
|||
|
Net (decrease)/increase in cash and cash equivalents |
(6,301) |
2,771 |
|||
|
Cash and cash equivalents at beginning of period |
8,734 |
5,963 |
|||
|
Cash and cash equivalents at end of period |
2,433 |
8,734 |
|||
Notes
1. Financial Information
The financial information set out above does not constitute the Company's statutory accounts for the years ended 30 September 2009 or 2008 but is derived from those accounts. Statutory accounts for 2008 have been delivered to the Registrar of Companies, and those for 2009 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 237 (2) or (3) of the Companies Act 1985 in respect of the accounts for 2008 nor a statement under section 498 (2) or (3) of the Companies Act 2006 in respect of the accounts for 2009.
2. Accounting Policies
Basis of preparation
The financial information has been prepared under the historical cost convention, except for certain property which is stated at deemed cost, and in accordance with adopted IFRS. The financial information has been prepared on a basis consistent with that presented in the 30 September 2008 financial statements.
Basis of consolidation
The consolidated financial information incorporates the accounts of Electronic Data Processing PLC and all its subsidiaries. Such accounts are all made up to 30 September 2009.
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial information of subsidiaries is included in the consolidated financial information from the date that control commences until the date that control passes. Intragroup balances, and any unrealised gains and losses or income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial information.
Revenue
Revenue represents the sales of goods and services at invoiced value less amounts relating to future periods and excluding value added tax and transactions between Group Companies. Revenue is recognised to the extent that it is probable that economic benefits will flow to the Group and the revenue can be reliably measured.
Revenue from the sale of initial licences for software products is recognised upon delivery of the product to customers. Recurring licence fees and hosting charges are recognised evenly over the period to which they relate. Revenue from the provision of professional services, including training, implementation and consultancy, is recognised when the services have been performed. Computer equipment sales are recognised on delivery to customers. Equipment maintenance charges are recognised evenly over the period to which they relate.
Property, plant and equipment
Property, plant and equipment is stated at cost or deemed cost less accumulated depreciation and impairment losses. Land is not depreciated. The Directors assess the residual values and useful economic lives of the properties on an annual basis. Depreciation is provided so as to write off the cost, or deemed cost, less the estimated residual value of each asset in equal instalments over its estimated useful life from the time it becomes operational, at the following rates:
Freehold property - 1 to 2 per cent
Motor vehicles - 20 to 33 per cent
Equipment, fixtures and fittings - 15 to 25 per cent
Treasury shares
When share capital recognised as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from equity. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit on the transaction is transferred to or from retained earnings.
Employee benefits - pensions
The Group operates both defined contribution and defined benefit pension schemes. The premiums relating to defined contribution schemes are charged to the Income Statement in the period in which they accrue.
The Group's net obligation in respect of its defined benefit pension plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value, and the fair value of any plan. The calculation is performed by a qualified actuary using the projected unit credit method.
Actuarial gains and losses occur when the actual returns on scheme assets differ from those previously expected by the actuary. All actuarial gains and losses as at 1 October 2004, being the date of transition to IFRS, were recognised in full.
The Group recognises actuarial gains and losses arising subsequent to 1 October 2004 directly into equity through the Statement of Recognised Income and Expense in the period they occur. All other movements in the pension asset or liability are recognised in the Income Statement for the relevant period.
3. Segment Information
Geographical segments
The Group is considered to have one class of trade. The Group is principally a supplier of software solutions and associated professional services, such that substantially all of its revenues are derived from this single source.
The following table presents revenue and expenditure and certain assets and liabilities information by geographical segment for the periods ended 30 September 2009 and 30 September 2008. The Group's geographical segments are based on the location of the Group's assets.
|
|
|||||||||||
|
2009 |
2008 |
2009 |
2008 |
2009 |
2008 |
||||||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||||||
|
UK |
UK |
USA |
USA |
TOTAL |
TOTAL |
||||||
|
Revenue |
5,790 |
6,764 |
54 |
86 |
5,844 |
6,850 |
|||||
|
Operating profit/(loss) |
369 |
666 |
(22) |
24 |
347 |
690 |
|||||
|
Assets |
10,428 |
19,336 |
472 |
435 |
10,900 |
19,771 |
|||||
|
Liabilities |
(3,881) |
(5,436) |
(18) |
(18) |
(3,899) |
(5,454) |
|||||
|
Net assets |
6,547 |
13,900 |
454 |
417 |
7,001 |
14,317 |
|||||
|
Capital expenditure |
65 |
315 |
- |
- |
65 |
315 |
|||||
|
Depreciation |
238 |
253 |
- |
1 |
238 |
254 |
|||||
4. Earnings per share
Earnings per share is calculated by dividing the profit for the period attributable to equity holders of the parent of £327,000 (2008: £1,832,000) by 18,773,067 (2008: 24,522,362) being the weighted average number of shares in issue during the year.
Basic and diluted earnings per share are both 1.74p (2008: 7.47p).
|
|
|
|
||||||||||
|
5. |
Dividends paid and proposed |
|||||||||||
|
2009 |
2008 |
|||||||||||
|
£'000 |
£'000 |
|||||||||||
|
The following dividends were declared and paid during the year: |
||||||||||||
|
|
Final dividend for 2008 |
|
- 2.000p |
|
(2007: 2.000p) |
|
490 |
|
490 |
|||
|
|
Interim dividend for 2009 |
|
- 0.713p |
|
(2008: 0.713p) |
|
89 |
|
175 |
|||
|
|
Special dividend |
|
|
- |
|
(2008: 5.000p) |
|
- |
|
1,226 |
||
|
579 |
1,891 |
|||||||||||
|
|
Proposed for approval by shareholders at the AGM |
|
|
|
|
|||||||
|
|
Final dividend for 2009 |
|
|
- 2.000p |
|
(2008 : 2.000p) |
|
251 |
|
490 |
||
|
|
|
|
|
||||||||
|
6. |
Share Capital |
||||||||||
|
Ordinary shares of 5p each |
|||||||||||
|
2009 |
2008 |
2009 |
2008 |
||||||||
|
Number |
Number |
£'000 |
£'000 |
||||||||
|
Allotted, called up and fully paid: |
|||||||||||
|
At 1 October |
24,522,362 |
24,522,362 |
1,226 |
1,226 |
|||||||
|
Repurchased and cancelled during the year |
(10,738,289) |
- |
(537) |
- |
|||||||
|
At 30 September |
13,784,073 |
24,522,362 |
689 |
1,226 |
|||||||
|
Less: held in Treasury (see below) |
(1,253,097) |
- |
(63) |
- |
|||||||
|
"Called up share capital" for reporting purposes |
12,530,976 |
24,522,362 |
626 |
1,226 |
|||||||
|
Treasury shares |
Ordinary shares of 5p each |
||||||||||
|
2009 |
2008 |
2009 |
2008 |
||||||||
|
Number |
Number |
£'000 |
£'000 |
||||||||
|
Shares held in Treasury at 1 October |
- |
- |
- |
- |
|||||||
|
Market purchases (Apr 2009 - 50p) |
1,253,097 |
- |
627 |
- |
|||||||
|
Shares held in Treasury at 30 September |
1,253,097 |
- |
627 |
- |
|||||||
On 9 April 2009 the Company completed a tender offer to repurchase 48.9% of its ordinary share capital at a price of 50p per share. This resulted in 11,991,386 ordinary shares being acquired under the tender offer and following completion of the repurchase 10,738,289 of those shares were cancelled and 1,253,097 held in treasury. Total consideration paid for the shares was £5,996,000 and this amount has been charged directly to reserves. In addition, directly attributable transaction costs of £179,000 have also been charged to reserves.
Mr. M.A. Heller, a Director of the Company, sold 100,000 ordinary shares back to the Company under the terms of the tender offer noted above.
|
7. |
Reconciliation of movement in equity and reserves |
||||||||||||||
|
|
Capital |
||||||||||||||
|
Issued |
Share |
redemption |
Translation |
Treasury |
Retained |
||||||||||
|
capital |
premium |
reserve |
reserve |
shares |
earnings |
Total |
|||||||||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||||||||
|
At 1 October 2008 |
1,226 |
119 |
88 |
(3) |
- |
12,887 |
14,317 |
||||||||
|
Total recognised income and expense |
- |
- |
- |
- |
- |
(562) |
(562) |
||||||||
|
Acquisition of own shares |
(537) |
- |
537 |
- |
(627) |
(5,548) |
(6,175) |
||||||||
|
Dividends paid |
- |
- |
- |
- |
- |
(579) |
(579) |
||||||||
|
|
|
|
|
|
|
|
|||||||||
|
At 30 September 2009 |
689 |
119 |
625 |
(3) |
(627) |
6,198 |
7,001 |
||||||||
This preliminary announcement was approved by the Board of Directors on 26 November 2009.
Related Shares:
Electronic Data Processing