TIDMACS
RNS Number : 8951H
AI Claims Solutions PLC
02 March 2010
Ai CLAIMS SOLUTIONS PLC
Interim Report for the 6 months ended 31 December 2009
· Revenue increased by 59% to GBP38.2m (2008: GBP24.0m)
· EBITDA increased by 26% to GBP1.548m (2008: GBP1.225m)
· Adjusted PBT increased by 27% to GBP906k before IFRS 2 charges (2008:
GBP713k)
· Earnings per share increased by 31% to 0.97p (2008: 0.74p)
· Interim dividend per share increased by 12% to 0.29p per share (2008:
0.26p per share)
· Annualised return on shareholders funds (post tax and interest) increased
by 21% to 8.0% from 6.6%
· Total net borrowings of GBP12.753m (30 June 2009: GBP9.128m)
· Debtor days of 101 days (30 June 2009: 95 days). WIP days of 37 days (30
June 2009 : 46 days)
· Successful negotiation of a significant non fault intermediary referral
source and agreement of satisfactory terms for additional working capital bank
funding
· Renewal of vehicle rental partnership arrangement, providing security of
supply and pricing for a further two years
· Migration from the Legacy IT System continued with all new business
expected to be written on the new platform by the year end
· Implementation of full outsource scheme for an insurer in run off,
handling first notification of loss (FNOL), fault and non fault claims
· Implementation of 2 broker schemes providing FNOL and non-fault services
· Selection as bilateral partner for large insurer
· Agreement finalised with major insurer post period end for the settlement
of outstanding debt
For further information, please contact:
+--------------------------------+--------------------------------+
| David Sandhu, Chief Executive | 0844 571 3108 |
| - | |
+--------------------------------+--------------------------------+
| Peter Harrison, Group Finance | 0844 571 3200 |
| Director - | |
+--------------------------------+--------------------------------+
| Dru Danford, Shore Capital & | 0207 408 4090 |
| Corporate Ltd - | |
+--------------------------------+--------------------------------+
| Stephane Auton, Shore Capital | 0207 408 4090 |
| & Corporate Ltd - | |
+--------------------------------+--------------------------------+
+------------------------+----------+-----------+-----------+----------+
| | | 6 months | 6 months | Year |
| | | to 31 | to 31 | ended |
| | | December | December | 30 June |
| | | 2009 | 2008 | 2009 |
| | | Unaudited | Unaudited | Audited |
+------------------------+----------+-----------+-----------+----------+
| | | GBP'000 | GBP'000 | |
| | | | | GBP'000 |
+------------------------+----------+-----------+-----------+----------+
| | | | | |
+------------------------+----------+-----------+-----------+----------+
| Revenue | | 38,151 | 24,017 | 55,744 |
+------------------------+----------+-----------+-----------+----------+
| | | | | |
+------------------------+----------+-----------+-----------+----------+
| Profit before taxation | | 906 | 713 | 2,016 |
| and IFRS2 charge | | | | |
| (Adjusted Profit | | | | |
| Before Tax) | | | | |
+------------------------+----------+-----------+-----------+----------+
| | | | | |
+------------------------+----------+-----------+-----------+----------+
| IFRS 2 charge | | (51) | (45) | (142) |
+------------------------+----------+-----------+-----------+----------+
| | | | | |
+------------------------+----------+-----------+-----------+----------+
| Profit before taxation | | 855 | 668 | 1,874 |
+------------------------+----------+-----------+-----------+----------+
| | | | | |
+------------------------+----------+-----------+-----------+----------+
| Tax on profit on | | (261) | (214) | (573) |
| ordinary activities | | | | |
+------------------------+----------+-----------+-----------+----------+
| | | | | |
+------------------------+----------+-----------+-----------+----------+
| Profit after taxation | | 594 | 454 | 1,301 |
+------------------------+----------+-----------+-----------+----------+
Ai's overall revenue increased by 59% from GBP24.0m to GBP38.2m. Hire revenue
increased from GBP16.2m to GBP25.5m (57%) to comprise 66.8% of total revenue
(2008: 67.6%). The hire performance benefited from the roll out of new business
across the insurer and broker channels.
Repair related income increased from GBP5.7m to GBP11.0m (93%) to represent 29.0
% of total revenue (2008: 23.6%). Again this represents new business
implementations across the insurer and broker sectors for both fault and
non-fault services.
Other income lines declined overall from GBP2.1m to GBP1.7m (24%) to represent
4.2% of revenue (2008: 8.8%). We continue to develop innovative new services
for our partners, usually in pilot mode, which may or may not lead to longer
term business. The nature of this work means that volume levels, whilst
representing a relatively small share of our overall account, will fluctuate.
Gross margin in the period was 19.2% (2008: 30.4%). Our operating margin was
2.7% (2008:3.2%). Both were in line with our management budget, which takes
into account changes in the scale and mix of our business reported in my
previous statement and certain costings which are weighted to the first half of
the year.
Administrative costs reduced from 27.3% of revenue to 16.5% of revenue. a
reduction of 10.8%.This is attributable to efficiency improvements from the new
IT system and leveraging the fixed cost base together with a reduction in staff
costs associated with pilot activity.
Annualised return (post tax and interest) on shareholders funds of 8% improved
from 6.6% in the comparative period, a 21% increase. Our efficient operating
platform enables us to deliver a reasonable rate of return in the current
economic climate.
Our debtor days, which we calculate using the countback method deteriorated
slightly to 101 days, from 95 days at June 2009. Whilst this is significantly
lower than the sector (which averages over 200 days), it is relatively high for
Ai. Ai's claims remain very well controlled and our average hire duration
remains around 16 days.
Whilst competitors have been litigating against insurers to recover payment on
credit hire cases, Ai remains committed to working positively with insurers to
recover amounts due. We do however see significant variability between insurers
in the payment of credit hire claims under the GTA protocol for the same
population of claims. Where settlement time is unreasonable and there is a
failure to engage then Ai will resort to litigation. Although claims are taking
slightly longer to settle, we are not experiencing any deterioration in the
amounts collected.
We are making progress in our engagement with insurers to ensure they have
sufficient resources to deal with our claims and this is bringing tangible
results. We have recently agreed terms with a top 4 insurer to bring their
account up to date and accelerate payment at no diminution to the value of Ai's
debt. Similar discussions are being held with other companies.
Net debt increased by GBP3.7m to GBP12.8m from GBP9.1m. Of the increase, GBP0.8m
was attributable to capital expenditure with the balance of GBP2.9m being
attributable to operational cash outflow. The operational cash outflow arose
predominantly from new business growth. Whilst there has been an extension to
debtor days this has been mitigated by a reduction in work in progress days from
46 days to 37 days. The net overdraft of GBP11.7 m remains comfortably within
the existing facility of GBP15m.
Prospects and Dividends
We have agreed terms for 2 significant schemes with a major intermediary, one
starting on 1st March and one on 1st July. Working capital funding has been
approved and the contracts will be signed imminently with referrals having
already started.
We expect additional growth opportunities to continue to become available and
are confident that the Group has made a breakthrough to become an operation of
significantly greater scale. As in previous years, we anticipate that our
profit will be weighted towards the second half of the year. The Board is
pleased to announce an interim dividend of 0.29p per share (2008: 0.26p), an
increase of 12%. The dividend will be paid on 1st April 2010 to shareholders on
the register at 12th March 2010.
Steve Broughton
Chairman
1 March 2010
+--------------------------+------+-----------+-----------+----------+
| | | 6 months | 6 months | Year |
| | | ended 31 | ended 31 | ended 30 |
| | | December | December | |
| | | 2009 | 2008 | June |
| | | Unaudited | Unaudited | 2009 |
| | Note | | | Audited |
+--------------------------+------+-----------+-----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Revenue | | 38,151 | 24,017 | 55,744 |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Cost of sales | | (30,839) | (16,701) | (41,470) |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Gross profit | | 7,312 | 7,316 | 14,274 |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Administrative expenses | | (6,281) | (6,546) | (12,178) |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Operating profit | | 1,031 | 770 | 2,096 |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Financial expenses | | (176) | (102) | (222) |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Profit before taxation | | 855 | 668 | 1,874 |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Taxation | 4 | (261) | (214) | (573) |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Profit for the period | | 594 | 454 | 1,301 |
+--------------------------+------+-----------+-----------+----------+
| | | | | |
+--------------------------+------+-----------+-----------+----------+
| Basic earnings per share | | 0.97p | 0.74p | 2.13p |
| | 3 | | | |
+--------------------------+------+-----------+-----------+----------+
| Diluted earnings per | 3 | 0.96p | 0.73p | 2.11p |
| share | | | | |
+--------------------------+------+-----------+-----------+----------+
All operations are continuing.
+-----------------------------+------+-----------+-----------+----------+
| |Note | 31 | 31 | 30 |
| | | December | December | June |
| | | 2009 | 2008 | 2009 |
| | | Unaudited | Unaudited | Audited |
+-----------------------------+------+-----------+-----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+-----------------------------+------+-----------+-----------+----------+
| Non current assets | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Goodwill | | 6,726 | 6,726 | 6,726 |
+-----------------------------+------+-----------+-----------+----------+
| Other intangible assets | | 3,376 | 3,002 | 2,894 |
+-----------------------------+------+-----------+-----------+----------+
| Property, plant and | | 2,238 | 2,410 | 2,463 |
| equipment | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Deferred tax asset | | 28 | 30 | 27 |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| | | 12,368 | 12,168 | 12,110 |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Current assets | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Trade and other receivables | 6 | 38,748 | 22,077 | 31,096 |
+-----------------------------+------+-----------+-----------+----------+
| Cash and cash equivalents | | 103 | 41 | 130 |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| | | 38,851 | 22,118 | 31,226 |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Total assets | | 51,219 | 34,286 | 43,336 |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Current liabilities | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Financial liabilities - | | (11,938) | (5,136) | |
| borrowings | 7 | | | (8,379) |
+-----------------------------+------+-----------+-----------+----------+
| Trade and other payables | 8 | (22,575) | (14,154) | (18,988) |
+-----------------------------+------+-----------+-----------+----------+
| Current tax liabilities | | (715) | (142) | (454) |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| | | (35,228) | (19,432) | (27,821) |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Non current liabilities | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Financial liabilities - | 7 | (918) | (995) | (879) |
| borrowings | | | | |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| | | (918) | (995) | (879) |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Total liabilities | | (36,146) | (20,427) | (28,700) |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Net assets | | 15,073 | 13,859 | 14,636 |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
| Shareholders' equity | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Share capital | | 6,142 | 6,142 | 6,142 |
+-----------------------------+------+-----------+-----------+----------+
| Share premium account | | 1,579 | 1,579 | 1,579 |
+-----------------------------+------+-----------+-----------+----------+
| Other reserves | | 275 | 248 | 345 |
+-----------------------------+------+-----------+-----------+----------+
| Retained earnings | | 7,077 | 5,890 | 6,570 |
+-----------------------------+------+-----------+-----------+----------+
| | | | | |
+-----------------------------+------+-----------+-----------+----------+
| Total shareholders' equity | | 15,073 | 13,859 | 14,636 |
+-----------------------------+------+-----------+-----------+----------+
There are no items to be recognised in a separate consolidated statement of
comprehensive income and accordingly no such statement has been
included.
Consolidated STATEMENT OF FINANCIAL POSITION
+------------------------------+---------+---------+---------+---------+---------+
| | Share | Share | Other | Profit | |
| | capital | premium | reserve | and | Total |
| | | account | | loss | equity |
| | | | | account | |
+------------------------------+---------+---------+---------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Balance at 31 December 2007 | 6,142 | 1,579 | 193 | 4,881 | 12,795 |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Total recognised income and | - | - | - | 895 | 895 |
| expense | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Dividends | - | - | - | (160) | (160) |
+------------------------------+---------+---------+---------+---------+---------+
| Deferred tax on share | - | - | - | 15 | 15 |
| options | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Equity settled share based | - | - | 78 | - | 78 |
| payment transactions | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Balance at 30 June 2008 | 6,142 | 1,579 | 271 | 5,631 | 13,623 |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Total recognised income and | - | - | - | 454 | 454 |
| expense | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Dividends | - | - | - | (209) | (209) |
+------------------------------+---------+---------+---------+---------+---------+
| Equity settled share based | - | - | 45 | - | 45 |
| payment transactions | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Transfer between reserves | - | - | (68) | 68 | - |
| upon lapse of share based | | | | | |
| payment options | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Purchase of own treasury | - | - | - | (54) | (54) |
| shares | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Balance at 31 December 2008 | 6,142 | 1,579 | 248 | 5,890 | 13,859 |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Total recognised income and | - | - | - | 847 | 847 |
| expense | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Dividends | - | - | - | (159) | (159) |
+------------------------------+---------+---------+---------+---------+---------+
| Deferred tax on share | - | - | - | (8) | (8) |
| options | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Equity settled share based | - | - | 97 | - | 97 |
| payment transactions | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Balance at 30 June 2009 | 6,142 | 1,579 | 345 | 6,570 | 14,636 |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Total recognised income and | - | - | - | 594 | 594 |
| expense | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Dividends | - | - | - | (208) | (208) |
+------------------------------+---------+---------+---------+---------+---------+
| Equity settled share based | - | - | 51 | - | 51 |
| payment transactions | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Transfer between reserves | - | - | (121) | 121 | - |
| upon lapse of share based | | | | | |
| payment options | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| | | | | | |
+------------------------------+---------+---------+---------+---------+---------+
| Balance at 31 December 2009 | 6,142 | 1,579 | 275 | 7,077 | 15,073 |
+------------------------------+---------+---------+---------+---------+---------+
consolidated Statement of changes in equity
+--------------------------------------+-+----------+-----------+-----------+
| | 6 months | 6 months | Year |
| | ended 31 | ended 31 | ended 30 |
| | December | December | June |
| | 2009 | 2008 | 2009 |
| | Unaudited | Unaudited | Audited |
+--------------------------------------+------------+-----------+-----------+
| | GBP'000 | GBP'000 | GBP'000 |
+----------------------------------------+----------+-----------+-----------+
| Cash flows from operating activities | | | |
+----------------------------------------+----------+-----------+-----------+
| Profit for the period | 594 | 454 | 1,301 |
+----------------------------------------+----------+-----------+-----------+
| Adjustments for: | | | |
+----------------------------------------+----------+-----------+-----------+
| Depreciation of property, plant | 225 | 219 | 432 |
| and equipment | | | |
+----------------------------------------+----------+-----------+-----------+
| Amortisation of other intangible | 292 | 236 | 503 |
| assets | | | |
+----------------------------------------+----------+-----------+-----------+
| Gain on sale of property, plant | - | - | (2) |
| and equipment | | | |
+----------------------------------------+----------+-----------+-----------+
| Share compensation charge | 51 | 45 | 142 |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Financial expense | 176 | 102 | 222 |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Taxation | 261 | 214 | 573 |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Increase in trade and other | (7,652) | (4,631) | (13,650) |
| receivables | | | |
+----------------------------------------+----------+-----------+-----------+
| Increase in trade and other | 3,539 | 934 | 5,762 |
| payables | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Interest paid | (176) | (102) | (222) |
+----------------------------------------+----------+-----------+-----------+
| Taxation paid | - | - | (51) |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| NET CASH UTILISED IN OPERATING | (2,690) | (2,529) | (4,990) |
| ACTIVITIES | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Cash flows from investing activities | | | |
+----------------------------------------+----------+-----------+-----------+
| Proceeds from sale of property, plant | - | - | 3 |
| and equipment | | | |
+----------------------------------------+----------+-----------+-----------+
| Purchases of property, plant and | (230) | (247) | (286) |
| equipment | | | |
+----------------------------------------+----------+-----------+-----------+
| Purchases of other intangible assets | (545) | (330) | (718) |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Net cash used in investing activities | (775) | (577) | (1,001) |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Cash flows from financing activities | | | |
+----------------------------------------+----------+-----------+-----------+
| Purchase of treasury shares | - | (54) | (54) |
+----------------------------------------+----------+-----------+-----------+
| Dividends paid | (160) | - | (368) |
+----------------------------------------+----------+-----------+-----------+
| Proceeds of borrowings | - | - | 215 |
+----------------------------------------+----------+-----------+-----------+
| Increase/(Repayment of borrowings) | 39 | (31) | (82) |
+----------------------------------------+----------+-----------+-----------+
| Increase/(Payment) of finance lease | 35 | (30) | (50) |
| liabilities | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Net cash used in financing activities | (86) | (115) | (339) |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Net decrease in cash and cash | (3,551) | (3,221) | (6,330) |
| equivalents | | | |
+----------------------------------------+----------+-----------+-----------+
| Cash and cash equivalents at beginning | (8,126) | (1,796) | (1,796) |
| of period | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | |
+----------------------------------------+----------+-----------+-----------+
| Cash and cash equivalents at end of | (11,677) | (5,017) | (8,126) |
| period | | | |
+----------------------------------------+----------+-----------+-----------+
| | | | | |
+--------------------------------------+-+----------+-----------+-----------+
NOTES TO THE INTERIM REPORT TO 31 December 2009
1 Basis of preparation
The results for the six months ended 31 December 2009, which are unaudited, have
been prepared on a basis consistent with the recognition and measurement
principles of International Financial Reporting Standards (IFRS); this is
consistent with the accounting policies set out in the audited annual accounts.
The financial information set out in this interim report does not constitute
statutory accounts as defined in Section 434 of the Companies Act 2006. The
Group's statutory financial statements for the year ended 30 June 2009, have
been filed with the Registrar of Companies. The auditor's report on those
financial statements was unqualified and did not contain statements under
Section 498(2) or Section 498(3) of the Companies Act 2006.
2 Segment reporting
The Group operates in one business segment, being the delivery of accident
management and other solutions to the automotive and insurance sectors,
conducted wholly in the United Kingdom. Accordingly, no segmental information
for business segment or geographical segment is required.
3 Earnings per share
+---------------------+----------+-------------+-------------+-----------+
| | | 6 months | 6 months | Year |
| | | ended 31 | ended 31 | ended 30 |
| | | December | December | June |
| | | 2009 | 2008 | 2009 |
| | | Unaudited | Unaudited | Audited |
+---------------------+----------+-------------+-------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+---------------------+----------+-------------+-------------+-----------+
| These have been | | 594 | 454 | 1,301 |
| calculated on | | | | |
| earnings of: | | | | |
+---------------------+----------+-------------+-------------+-----------+
| | | | | |
+---------------------+----------+-------------+-------------+-----------+
| The weighted | | '000 | '000 | '000 |
| average number of | | | | |
| shares used was:- | | | | |
+---------------------+----------+-------------+-------------+-----------+
| | | | | |
+---------------------+----------+-------------+-------------+-----------+
| Basic | | 61,116 | 61,116 | 61,201 |
+---------------------+----------+-------------+-------------+-----------+
| Dilutive effect of | | 561 | 858 | 561 |
| share options | | | | |
+---------------------+----------+-------------+-------------+-----------+
| Diluted | | 61,677 | 61,974 | 61,762 |
+---------------------+----------+-------------+-------------+-----------+
4 taxation
+---------------------+----------+-------------+-------------+-----------+
| | | 6 months | 6 months | Year |
| | | ended 31 | ended 31 | ended 30 |
| | | December | December | June |
| | | 2009 | 2008 | 2009 |
| | | Unaudited | Unaudited | Audited |
+---------------------+----------+-------------+-------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+---------------------+----------+-------------+-------------+-----------+
| | | | | |
+---------------------+----------+-------------+-------------+-----------+
| Current year tax | | 261 | 214 | 573 |
| charge | | | | |
+---------------------+----------+-------------+-------------+-----------+
The tax charge is based on the estimated expected tax rate for the period.
The effective tax rate for the six months ended 31 December 2009 is 30.5% (six
months ended 31 December 2008: 32.0%). The effective rate of tax for the 12
months ended 30 June 2009 was 30.5%. This varies from the basic rate of
corporation tax (six months ended 31 December 2009: 28%; six months ended 31
December 2008: 28%) as a result of non deductible expenditure.
5 Earnings before interest, tax, depreciation & Amortisation
Earnings before interest, tax, depreciation and amortisation (EBITDA) have been
calculated are follows:
+---------------------+----------+--------------+-------------+-----------+
| | | 6 months | 6 months | Year |
| | | ended 31 | ended 31 | ended 30 |
| | | December | December | June |
| | | 2009 | 2008 | 2009 |
| | | Unaudited | Unaudited | Audited |
+---------------------+----------+--------------+-------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+---------------------+----------+--------------+-------------+-----------+
| | | | | |
+---------------------+----------+--------------+-------------+-----------+
| Operating profit | | 1,031 | 770 | 2,096 |
+---------------------+----------+--------------+-------------+-----------+
| Depreciation | | 225 | 219 | 432 |
+---------------------+----------+--------------+-------------+-----------+
| Amortisation | | 292 | 236 | 503 |
+---------------------+----------+--------------+-------------+-----------+
| | | | | |
+---------------------+----------+--------------+-------------+-----------+
| EBITDA | | 1,548 | 1,225 | 3,031 |
+---------------------+----------+--------------+-------------+-----------+
| | | | | |
+---------------------+----------+--------------+-------------+-----------+
6 trade and other receivables
+------------------------+----------+------------+-------------+----------+
| | | 31 | 31 December | 30 June |
| | | December | | 2009 |
| | | 2009 | 2008 | Audited |
| | | Unaudited | Unaudited | |
+------------------------+----------+------------+-------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+------------------------+----------+------------+-------------+----------+
| | | | | |
+------------------------+----------+------------+-------------+----------+
| Trade receivables | | 24,492 | 12,893 | 19,752 |
+------------------------+----------+------------+-------------+----------+
| Other receivables | | 2,763 | 601 | 1,066 |
+------------------------+----------+------------+-------------+----------+
| Prepayments and | | 11,493 | 8,583 | 10,278 |
| accrued income | | | | |
+------------------------+----------+------------+-------------+----------+
| | | | | |
+------------------------+----------+------------+-------------+----------+
| | | 38,748 | 22,077 | 31,096 |
+------------------------+----------+------------+-------------+----------+
| | | | | |
+------------------------+----------+------------+-------------+----------+
7 Financial liabilities - borrowings
+------------------------+-+------------+------------+-----------+
| | | 31 | 31 | 30 June |
| | | December | December | 2009 |
| | | 2009 | 2008 | Audited |
| | | Unaudited | Unaudited | |
+------------------------+-+------------+------------+-----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+------------------------+-+------------+------------+-----------+
| Current liabilities | | | | |
+------------------------+-+------------+------------+-----------+
| Current portion of | | 104 | 39 | 104 |
| secured bank loans | | | | |
+------------------------+-+------------+------------+-----------+
| Current portion of | | 54 | 39 | 19 |
| finance lease | | | | |
| liabilities | | | | |
+------------------------+-+------------+------------+-----------+
| Bank overdraft | | 11,780 | 5,058 | 8,256 |
+------------------------+-+------------+------------+-----------+
| | | | | |
+------------------------+-+------------+------------+-----------+
| | | 11,938 | 5,136 | 8,379 |
+------------------------+-+------------+------------+-----------+
| | | | | |
+------------------------+-+------------+------------+-----------+
| Non current | | | | |
| liabilities | | | | |
+------------------------+-+------------+------------+-----------+
| Bank loans | | 826 | 995 | 879 |
+------------------------+-+------------+------------+-----------+
| Finance lease | | 92 | - | - |
| liabilities | | | | |
+------------------------+-+------------+------------+-----------+
| | | | | |
+------------------------+-+------------+------------+-----------+
| | | | | |
+------------------------+-+------------+------------+-----------+
| | | 918 | 995 | 879 |
+------------------------+-+------------+------------+-----------+
8 trade and other payables
+------------------------+----------+------------+------------+----------+
| | | 31 | 31 | 30 June |
| | | December | December | 2009 |
| | | 2009 | 2008 | Audited |
| | | Unaudited | Unaudited | |
+------------------------+----------+------------+------------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+------------------------+----------+------------+------------+----------+
| Current liabilities | | | | |
+------------------------+----------+------------+------------+----------+
| Trade payables | | 7,439 | 4,916 | 4,943 |
+------------------------+----------+------------+------------+----------+
| Other taxation and | | 3,717 | 1,718 | 3,023 |
| social security | | | | |
+------------------------+----------+------------+------------+----------+
| Other payables | | 407 | 432 | 355 |
+------------------------+----------+------------+------------+----------+
| Dividend declared | | 208 | 209 | - |
+------------------------+----------+------------+------------+----------+
| Accruals | | 10,804 | 6,879 | 10,667 |
+------------------------+----------+------------+------------+----------+
| | | | | |
+------------------------+----------+------------+------------+----------+
| | | 22,575 | 14,154 | 18,988 |
+------------------------+----------+------------+------------+----------+
| | | | | |
+------------------------+----------+------------+------------+----------+
9 INTERIM REPORT
This interim report was approved by the Board on 1 March 2010.
INDEPENDENT REVIEW report to A
Introduction
We have been engaged by the company to review the financial information in the
half-yearly financial report for the six months ended 31 December 2009 which
comprises the consolidated statement of income, consolidated statement of
financial position, consolidated statement of changes in equity and the
consolidated statement of cash flow and the related notes 1 to 9. We have read
the other information contained in the half-yearly financial report which
comprises the Financial Overview, Operational Highlights and Chairman's
Statement and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of financial
statements.
This report is made solely to the company in accordance with guidance contained
in ISRE (UK and Ireland) 2410, 'Review of Interim Financial Information
performed by the Independent Auditor of the Entity'. Our review work has been
undertaken so that we might state to the company those matters we are required
to state to them in a review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the
conclusion we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the Directors. The AIM rules of the London Stock Exchange require that the
accounting policies and presentation applied to the financial information in the
half-yearly financial report are consistent with those which will be adopted in
the annual accounts having regard to the accounting standards applicable for
such accounts.
As disclosed in Note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
financial information in the half-yearly financial report has been prepared in
accordance with the basis of preparation in Note 1.
Our responsibility
Our responsibility is to express to the Company a conclusion on the financial
information in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with ISRE (UK and Ireland) 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 financial information in the half-yearly financial report for the six
months ended 31 December 2009 is not prepared, in all material respects, in
accordance with the basis of preparation described in Note 1.
GRANT THORNTON UK LLP
REGISTERED AUDITOR
MANCHESTER, UNITED KINGDOM
1 March
2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KMGGFNMZGGZM
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