TIDMATL
Press Release 22 March 2011
Atlantic Global Plc
("Atlantic Global" or "the Group")
Preliminary Results
Atlantic Global Plc (AIM: ATL), the specialist provider of integrated business
and resource management software applications, today announces its Preliminary
Results for the year ended 31 December 2010.
Financial and Operational Summary
· Turnover of GBP1.2 million (2009: GBP1.4 million)
· Losses before taxation of GBP220,000 (2009: GBP130,000)
· Net cash balance of GBP2.0 million (2009: GBP2.0 million)
· Loss per share was 0.85 pence (2009: 0.57 pence)
· Launch of automated Software as a Service (SaaS) solution, already securing
over 300 trials since 9 November 2010
· Strengthened areas of functionality with a view to providing a complete 'end
to end' business solution that manages sales enquiries, customer contact
information, project execution and billing with integration into back end
financial systems
· Packaged the solution functionality into discrete products targeted at small,
medium and larger types of organisations
· Successfully engaged with two partners that have significantly expanded our
Sales & Marketing capability
· New blue-chip OnDemand customers include Merseyside Police, Quadratek
Consulting Ltd, British Computer Society and Friends Provident
Prospects for 2011
· Continue to build on the progress made in 2010 by continued investment in R&D,
consistent innovation and increase in sales and marketing of the Group's
products and services
· Increase customer base through the launch of the automated SaaS solution and
new partnership opportunities with expected revenue from these new channels
Adrian Bradshaw, Chairman of Atlantic Global commented:
"Despite challenging market conditions, I can report the results are in line
with the Board's expectations. The strong commercial progress made by the Group
in 2010 has positioned us well going into 2011.
"A key strategic objective for 2011 is to establish partnerships with other
organisations to indirectly increase our market presence and our sales
capability. The Board is pleased to announce a new partnership deal in the
Middle East and a joint marketing initiative with Baker Tilly Revas Limited, the
back office outsourcing division of Baker Tilly. The Group reports that it has
already secured approximately 69% of its budgeted 2011 support revenue. The
OnDemand contracts delivered during 2010 increased by 180% and as a result the
Group is well placed for future growth.
"The Group has made significant investments across all areas of the business and
has secured over 300 trials of its new Software as a Service (SaaS) product.
Based on the increased level of customer IT spend and improved economic trading
conditions the Board has full confidence that the current year will show an
improvement on 2010. "
- Ends -
For further information please contact:
Atlantic Global Plc
Eugene Blaine, Managing Director Tel: +44 (0) 1274 863 300
Rupert Hutton, Finance Director
eugene.blaine@atlantic-global.com
rupert.hutton@atlantic-global.com www.atlantic-global.co.uk
Daniel Stewart & Company plc
Paul Shackleton / Noelle Greenaway, Nominated Advisers Tel: +44 (0) 207 776 6550
Christopher Theis, Corporate Broker
Media enquiries:
Abchurch Communications
Sarah Hollins / Simone Elviss Tel: +44 (0) 20 7398 7728
simone.elviss@abchurch-group.com www.abchurch-group.com
Chairman's Statement
The Board believes that the financial results for 2010 did not reflect the solid
underlying commercial progress made by the Group, and are disappointed to report
a loss before taxation of GBP220,000 compared with a loss of GBP130,000 for 2009.
Group turnover was GBP1,166,000 (2009: GBP1,350,000). The loss per share was 0.85
pence (2009 loss per share: 0.57 pence). A number of material contracts
expected in December 2010 were delayed and orders were received in early 2011,
post year end.
The Group increased its net cash balance at the year end to GBP2,036,000 (2009:
GBP2,032,000).
The Group maintained its investment in research and development at a cost of
GBP402,000 (2009: GBP403,000), which resulted in the launch of a fully automated
Software as a Service (SaaS) solution being made available on the 9 November
2010. The introduction of this automated SaaS platform allows customers to
commence evaluating our solution at their own convenience. This capability
marks a significant milestone for the Group and provides an effective means of
targeting and engaging with larger volumes of small and medium sized enterprises
as well as individual departments within a larger organisation. The Contract
and Billing Management functionality has been further refined and is now
attracting interest from partners operating in the accounting and payroll
services sector.
Following feedback from the November 2010 release, the Group launched another
major release of its SaaS solution on the 15 March 2011 that packages the
functionality into discreet products that are targeted at small, medium and
larger types of organisations. It showcases the Group's software products in
the best possible light by showing a new prospect only the functionality they
have specifically requested.
New Clients
The Group secured an increasing number of blue-chip OnDemand customers
throughout the year, including Merseyside Police, Quadratek Consulting Ltd,
British Computer Society and Friends Provident.
Recurring and Deferred Income
The level of recurring support income for 2010 fell slightly to GBP575,000 (2009:
GBP668,000), due to some clients reducing their requirement for supported
licences. The reduction of support revenue was also a result of Atlantic Global
upgrading existing clients to the SaaS model, securing extra ongoing revenue for
the Group in the process. The Group has already secured approximately 69% of its
budgeted 2011 support revenue.
The OnDemand contracts delivered during 2010 increased by 179% to GBP148,000,
(2009: GBP53,000). With GBP83,000 of SaaS income already in deferred income at the
year end, this is a solid recurring revenue base for the Group, especially given
the positive indication of monthly revenue intake from the SaaS contacts, and
the significant increase in SaaS trials taken up in late 2010 and early 2011.
Operating Review
Atlantic Global's aim for 2010 was to launch a fully automated SaaS platform for
customers to trial and adopt without needing to contact Atlantic Global.
As part of the launch, the Group offered customers a 60 day free trial and I am
pleased to report that over 300 prospective customers have availed of this
opportunity since its launch on the 9 November 2010.
A small number of the trials have converted to paying customers and a number of
other trials have progressed to larger sales opportunities that will take longer
to close.
The trials have also provided the Group with valuable feedback which formed the
basis of the 15 March release. Customer feedback led the Group to strengthen
areas of functionality with a view to providing a complete end to end business
solution that manages sales enquiries, customer contact information, project
execution and billing with integration into back end financial systems. It also
saw the introduction of document management which is becoming an increasing
important business requirement in many organisations.
Routes to Market
The products' ease of deployment has made it easier for the Group to partner
with other organisations.
The Group has established a partnership with LiveRoute, who are the first
dedicated SaaS solution provider based in the Middle East. The Group has agreed
a joint marketing initiative with Baker Tilly Revas Limited, the back office
outsourcing division of Baker Tilly. Baker Tilly is the eighth largest
accounting practice in the UK and an independent member of Baker Tilly
International, the eighth largest accounting network in the world.
Sales and Marketing
The Group has increased its marketing budget for 2011 which has been depressed
since 2006 whilst the Company adapted the solution to focus on a more receptive
and accessible SaaS market.
The Group has commenced the recruitment of sales, customer services and
implementation staff, partly to meet increased levels of trading activity.
Repurchase of Company Shares
For a number of years Atlantic Global has maintained relatively high cash levels
reflecting the cash generative nature of the business. The return on this
surplus cash is increasingly modest and the Directors believe that it could be
better used by continuing to repurchase some of the Company's shares for
cancellation. The Directors believe this will enhance shareholder value and
accordingly shareholder approval will be sought at the forthcoming Annual
General Meeting to repurchase up to 10% of the Company's outstanding share
capital from time to time. During 2010, the Company repurchased 50,000 shares
at a cost of GBP5,500.
Dividend
The Directors are not proposing a full year dividend for the year ended 31
December 2010, (2009: nil pence per share). The Directors will return to their
progressive dividend policy once there is a return to profitability. The interim
dividend was 0.4 pence per share (2009: nil pence per share).
Current Trading and Outlook
A number of contracts expected in 2010 were secured in 2011. In particular the
Group secured new contracts with, amongst others, Harvey Nash and SpecSavers as
well as customers in the Middle East gained through the partnership with
LiveRoute.
For the current year to date, trading is in line with the Board's expectations.
There are indications that customers are starting to increase IT spend again.
Partners and potential partners are also developing their strategies and are
proactively looking for new revenue streams. The latest product launches,
current partnership agreements and negotiations with potential partners give the
Board confidence that the current year will show an improvement on 2010.
The pipeline of new business prospects is currently strong, as are the
possibilities of new partnership opportunities.
Annual General Meeting
We shall be holding our AGM at 2.30pm on 19 April 2011 at the Group's head
office at Woodland Park, Bradford Road, Chain Bar, Cleckheaton, West Yorkshire,
BD19 6BW.
The Board extends the invitation to all shareholders in the hope that as many as
possible attend.
Staff
We recognise the skill, and dedication of our employees. The change of strategy
has required significant commitment and patience that has put the group into a
strong position where we look forward to a very positive 2011.
Adrian Bradshaw
Chairman
22 March 2011
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2010
2010 2009
GBP 000 GBP 000
Revenue 1,166 1,350
Cost of sales (853) (927)
--------- --------
Gross profit 313 423
--------- --------
Administration and other
operating expenses (547) (569)
--------- --------
Operating loss (234) (146)
Finance income 14 16
--------- --------
Loss before tax (220) (130)
Income tax credit 30 -
--------- --------
Loss and total comprehensive income for the
period attributable to owners of the parent (190) (130)
Loss per share
Basic & diluted (pence) (0.85)p (0.57)p
--------- --------
Consolidated statement of changes in equity
for the 12 months ended 31 December 2010
12 months ended 31 December Share Merger Profit Capital
2010 Share premium reserve and loss redemption
Capital account account reserve Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance brought forward at 1
January 2010 1,123 1,578 2.538 (332) 22 4,929
Dividends Paid - - - (22) - (22)
Share buy back (2) - - (5) 2 (5)
--------------------------------------------------
Transactions with owners (2) - - (27) 2 (27)
Loss and total comprehensive
income for the period - - - (190) - (190)
--------------------------------------------------
Balance at 31 December 2010 1,121 1,578 2,538 (549) 24 4,712
12 months ended 31 December Share Merger Profit Capital
2009 Share premium reserve and loss redemption
Capital account account reserve Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance brought forward at 1
January 2009 1,139 1,578 2,538 (59) 6 5,202
Dividends Paid - - - (91) - (91)
Share buy back (16) - - (52) 16 (52)
--------------------------------------------------
Transactions with owners (16) - - (143) 16 (143)
Loss and total comprehensive
income for the period - - - (130) - (130)
--------------------------------------------------
Balance at 31 December 2009 1,123 1,578 2,538 (332) 22 4,929
Consolidated Balance Sheet
as at 31 December 2010
2010 2009
GBP 000 GBP 000
Assets
Non-current assets
Intangible assets 2,792 2,792
Property, plant and equipment 8 13
Deferred tax asset 52 52
------------------
Total non-current assets 2,852 2,857
Current assets
Trade and other receivables 359 507
Income tax receivable 16 12
Cash and cash equivalents 2,036 2,032
------------------
2,411 2,551
------------------
Total assets 5,263 5,408
Equity and liabilities
Liabilities
Current liabilities
Trade and other payables 551 479
------------------
Total liabilities 551 479
Equity attributable to owners of the parent
Share capital 1,121 1,123
Share premium account 1,578 1,578
Merger reserve 2,538 2,538
Retained earnings (549) (332)
Capital redemption reserve 24 22
------------------
Total equity 4,712 4,929
------------------
------------------
Total equity and liabilities 5,263 5,408
Consolidated Cash Flow Statement
for the year ended 31 December 2010
2010 2009
GBP000 GBP000
Cash flows from operating activities
Loss for the year (190) (130)
Adjustments for:
Financial income (14) (16)
Income tax (30) -
Depreciation 7 10
Operating loss before changes in working capital (227) (136)
and provisions
Decrease in trade and other receivables 148 429
Increase/(decrease) in trade and other payables 72 (202)
Income tax received/(paid) 26 (83)
Net cash from operating activities 19 8
Cash flows from investing activities
Interest received 14 16
Purchase of property, plant and equipment (2) (8)
Net cash from investing activities 12 8
Cash flows from financing activities
Purchase of own shares (5) (52)
Dividends paid (22) (91)
Net cash used in financing activities (27) (143)
Net increase/(decrease) in cash and cash 4 (127)
equivalents
Cash and cash equivalents at the beginning of 2,032 2,159
the period
Cash and cash equivalents at the end of the 2,036 2,032
period
Notes
Relating to the consolidated financial statements
Notes
1. Publication of non-statutory financial statements
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in Section 434 of the Companies Act
2006.
The consolidated statement of comprehensive income, the consolidated statement
of changes in equity, the consolidated balance sheet and the consolidated cash
flow statement have been extracted from the Group's financial statements for the
year ended 31 December 2010 upon which the auditors opinion is unqualified and
does not include any statement under section 498(2) or 498(3) of the Companies
Act 2006. Those financial statements have not yet been delivered to the
Registrar.
The statutory accounts for the year ended 31 December 2009 have been delivered
to the registrar, contained an unqualified audit report and did not include a
statement under section 498(2) or 498(3) of the Companies Act 2006.
The audited accounts will be posted to all shareholders in due course and will
be available on request by contacting the Company Secretary at the Company's
Registered Office.
2. Basis of preparation
The preliminary announcement has been prepared under the historic cost
convention and in accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union.
3. Loss per share
Basic loss per share
The calculation of basic loss per share at 31 December 2010 was based on the
loss attributable to ordinary shareholders of GBP(190,000) (2009: GBP(130,000)) and
a weighted average number of ordinary shares outstanding of 22,447,103 (2009:
22,664,024).
Diluted loss per share
There is no difference between basic and diluted loss per share.
4. Share capital
2010 2009
GBP000 GBP000
Authorised
75,000,000 Ordinary shares of 5p each 3,750 3,750
Allotted, called up and fully paid
22,421,350 (2009: 22,471,350) Ordinary shares of 5p each 1,121 1,123
The holders
of ordinary shares are entitled to receive dividends as declared from time to
time and are entitled to one vote per share at meetings of the Company.
The movement in shares in the year relates to the purchase of 50,000 ordinary
shares of 5p by the Company.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Atlantic Global Plc via Thomson Reuters ONE
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