RNS Number:1446P
Finsaga PLC
03 March 2008
Date: Embargoed until 07.00 hrs, Monday 3 March 2008
Contact: Charles Fairbairn (Chairman)
Finsaga plc
Tel: 020 7796 4133 (contact via Hudson Sandler)
Corporate Website: www.finsaga.com
Alistair Mackinnon-Musson Mark Williams
Nicola Savage Canaccord Adams Limited
Hudson Sandler Nominated Adviser
Tel: 020 7796 4133 Tel: 020 7050 6500
Email: finsaga@hspr.com
Finsaga plc
Interim Results
Chairman's statement
I am pleased to announce that your company had cash resources of �13.2m,
equivalent to fully diluted cash per share of 28.8p, at 31 December 2007. The
Company had net debt of �1.3m at 30 June 2007, the end of the last financial
year.
This increase was primarily as a result of the disposal of our internet service
provider activities to British Telecommunications plc ("BT") for net proceeds of
�15.8m, which was completed on 31 July 2007.
Under the terms of the disposal the Company gave certain warranties to BT. As
announced on 6 July 2007, these imposed various constraints on the distribution
of the cash proceeds of the disposal within the six months and the 18 months
following completion of the disposal. The first period of six months expired on
31 January 2008 without the Company being notified of claims against the
warranties. This had the effect of reducing the maximum liability under the
warranties to �1.6 million from �8.1 million, thereby increasing the Company's
unrestricted cash by �6.5 million to �11.6 million (equivalent to a fully
diluted 25.4p per share).
Since the disposal the Company's profit and loss account has benefited from the
interest earned on our cash resources being higher than our ongoing running
expenses, which have been significantly reduced to reflect our current needs.
We have examined a number of acquisition proposals in this period and continue
to explore several but we are not currently in substantive discussions with
anyone.
Charles Fairbairn
Chairman
3 March 2008
Finsaga plc
Consolidated profit and loss account
Unaudited for the 6 months
Full year
31 Dec 2007 31 Dec 2006 30 June 2007
�'000 �'000 �'000
notes discontinued continuing total total total
operations operations
Turnover - discontinued operations 2 1,358 1,358 6,735 14,227
Cost of sales (796) (796) (5,638) (11,569)
Gross profit 562 562 1,097 2,658
Administrative expenses 3 (377) (223) (600) (1,521) (3,198)
Operating profit/(loss):
Discontinued operations 185 185 (204) (85)
Continuing operations (223) (223) (220) (455)
Operating profit /(loss) 2 (38) (424) (540)
Profit/(loss) on disposal of asset 4 6,500 6.500 (1,025) (1,025)
Profit before interest 2 6,685 (223) 6,462 (1,449) (1,565)
Interest receivable 339 41 92
Interest payable and related charges (190) (291) (586)
Profit on ordinary activities before 6,611 (1,699) (2,059)
taxation
Taxation on profit on ordinary
activities 108 73 47
Profit/(loss) on ordinary activities 6,719 (1,626) (2,012)
after taxation
Earnings per ordinary share - basic 5 15.2p (7.1)p (6.0)p
Fully diluted earnings per ordinary 5 14.6p (7.1)p (6.0)p
share
Finsaga plc
Consolidated balance sheet
at 31 December 2007
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June
2007 2006 2007
�'000 �'000 �'000
Fixed assets
Intangible assets - 8,162 7,837
Investments 887 847
-
Tangible assets - 297 380
- 9,346 9,064
Current assets
Debtors 301 2,344 2,238
Cash at bank and in hand 13,176 2,908 2,203
13,477 5,252 4,441
Creditors: amount falling due within one year (57) (3,535) (6,006)
Net current assets/(liabilities) 13,420 1,717 (1,565)
Total assets less current liabilities 13,420 11,063 7,499
Creditors: amounts falling due after more than one year - (3,201) -
Net assets 13,420 7,862 7,499
Capital and reserves
Called up share capital 435 448 448
Deferred shares - 10,575 -
Share premium account 1,737 3,913 1,440
Special reserve - - 3,534
Capital redemption reserve 45 - -
Profit and loss account 11,203 (7,074) 2,077
Shareholders' funds 13,420 7,862 7,499
Finsaga plc
Consolidated cashflow statement
Unaudited for the 6 months
Unaudited Unaudited Audited
31 Dec 31 Dec 30 June 2007
2007 2006
�'000 �'000 �'000
Net cash (outflow) / inflow from operating activities (1,054) 908 1,647
Returns on investments and servicing of finance
Interest paid (190) (291) (586)
Interest received 130 41 92
Taxation 108 (276) (299)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (37) (79) (262)
Sale of investments (note 4) 16,367 (25) (25)
Net cash inflow / (outflow) before financing 15,324 278 567
Financing
Bank and loan note repayments (3,534) (1,800) (2,773)
Share issue (net of costs) 329 1,693 1,687
Share purchase (1,146) - -
Restructuring costs - - (15)
Increase/(decrease) in cash in the period 10,973 171 (534)
Reconciliation of net cash flow to movement
in net debt
Increase/(decrease) in cash in the period 10,973 171 (534)
Repayment of loan notes - - 307
Repayment of bank borrowings 3,534 1,800 2,466
Movement of net funds 14,507 1,971 2,239
Net debt at beginning of the period (1,331) (3,570) (3,570)
Net cash/(debt) at end of the period 13,176 (1,599) (1,331)
Reconciliation of profit to net cashflow from operating activities
Operating loss (38) (424) (540)
Depreciation and amortisation 84 522 987
Decrease/(increase) in stocks - 35 35
Decrease/(increase) in debtors (129) 74 167
(Decrease)/increase in creditors (971) 701 955
Share based payment 43
Net cash (outflow) / inflow from operating activities (1,054) 908 1,647
Finsaga plc
Notes to the financial statements
1. Basis of preparation
The financial information included in this report does not constitute statutory
accounts for the purpose of section 240 of the Companies Act 1985. The
financial information for the year ended 30 June 2007 has been extracted from
the statutory accounts for that period, a copy of which has been delivered to
the Registrar of Companies. The auditor's report on those statutory accounts
was unqualified and did not contain a statement under Section 273(2) on (3) of
the Companies Act 1985.
The results for the half years ended 31 December 2006 and 31 December 2007 are
unaudited.
The group is not producing its interim financial statements under IFRS under the
assumption that it will not own material subsidiaries at the year end. As at 31
December 2007 the group had one material subsidiary Reedbest Properties with net
assets of �0.3m. These assets will be passed to Finsaga plc by 30 June 2008.
The consolidated interim financial statements were approved by the board on 3
March 2008.
2. Discontinued operations
Consolidated profit and loss account
Unaudited for the 6 months
Full year
31 Dec 2007 31 Dec 2006 30 June 2007
�'000 �'000 �'000
discontinued continuing consolidated discontinued continuing
consolidated operations operations operations operations consolidated
Turnover 1,358 6,735 6,735 14,227 14,227
Cost of sales (796) (5,638) (5,638) (11,568) (11,568)
Gross profit 562 1,097 1,097 2,659 2,659
Administrative expenses (600) (1,301) (220) (1,521) (3,768) (456) (4,224)
Operating profit /(loss) (38) (204) (220) (424) (1,109) (456) (1,565)
Profit /(Loss) on 6,500 (1,025) (1,025) (1,025) (1,025)
disposal of asset
Profit before interest 6,462 (1,229) (220) (1,449) (2,134) (456) (2,590)
3. Administrative expenses - discontinued operations
In the six months ended December 2007 these include goodwill amortisation of
�54,000 (2006: �325,000). In the previous half year there was an impairment
charge of �113,000. In the full year 2007 these include goodwill amortisation
of �650,000 relating to the discontinued operations and an impairment charge of
�153,000 relating to the discontinued operations.
4. Disposals
Sale of internet division
On 31 July 2007 the internet division was sold to British Telecommunications
plc.
Sale proceeds 17,231
less expenses (1,473)
Net proceeds 15,758
Intangible assets 7,783
Tangible assets 387
Cash 238
Debtors 2,327
Creditors (1,477)
Net assets disposed 9,258
Profit on disposal 6,500
Cashflow from disposal of investments
Net cash received from sale of internet division 15,520
Proceeds from sale of DM shares 847
Total cash received 16,367
5. Earnings per share
31 Dec 31 Dec 30 June
2007 2006 2007
Reported earnings (�'000) 6,719 (1,626) (2,012)
Weighted average shares used in Basic EPS calculation ('000) 44,196 23,478 33,741
Basic EPS (pence) 15.2p (7.1)p (6.0)p
Weighted average shares used in Diluted EPS calculation ('000) 46,095 23,478 33,741
Diluted EPS (pence) 14.6p (7.1)p (6.0)p
The weighted average number of shares used for Diluted EPS is the same as that used in the
Basic EPS calculation for the six month ending December 2006 and the year ending 30 June 2007, as the
effect of increasing the weighted average number of shares would be anti-dilutive.
- ENDS -
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