RNS Number:6930E
Personal Screening PLC
28 September 2007
27 September 2007
Personal Screening Plc
Interim results for the six months to 30 June 2007
Personal Screening Plc ("Personal Screening" or the "Company") is pleased to
report that sales at the half year of #35,875 showed a significant improvement
over the depressed sales level of #16,503 for the first six months of 2006. The
Directors of Personal Screening believe that this demonstrates a gradual process
of rebuilding the customer base after a difficult period last year when sales
and customers were lost because of problems with product supply resulting from a
shortage of working capital for part of the year and reduced customer confidence
thereafter. The absolute level of sales remains much lower than we would wish,
however, and we are continuing to take steps which we hope will boost sales in
the coming months. The Company has continued to invest for the future in people
and facilities and this has resulted in some growth in costs. As a result the
loss before taxation during the period increased to # 192,836 (2006 - Loss #
128,549). The loss per share was 0.11p, a little higher than that in the first
half of 2006 of 0.10p per share.
At 30 June 2007 the Company had net cash of #134,612. Since the period end the
Company balance sheet has been strengthened by a placing of approximately 112
million new shares between 31 August and 14 September 2007 to raise #285,000
(net of expenses). This will be utilised as additional working capital.
In the Chairman's Statement issued with the 2006 full year results the Chairman
mentioned that, while the Directors continued to have every confidence in the
prospects for the present business of Personal Screening, they were nevertheless
seeking other ways to increase shareholder value and that one possible way to do
so appeared to be to acquire, if possible, a complementary business which would
help Personal Screening to develop into a more substantial and profitable group.
Discussions are now taking place with one particular business and other similar
opportunities are continuing to be evaluated. It remains too soon to say whether
these discussions and investigations will or will not lead to a transaction
being announced within the second half of the current year.
The Directors of Personal Screening are hopeful that the current business will
continue to make progress during the remainder of 2007 and they view the future
of the group with confidence.
Michael Scorey
Chairman
Contacts:
Simon Driscoll, Managing Director, Personal Screening plc 01384 352717
Chris Steele, Adventis Financial PR 020 7034 4759
Nominated Adviser - Nabarro Wells & Co. Limited
John Wilkes
UNAUDITED CONSOLIDATED INCOME STATEMANT (IFRS)
For the six month period to 30 June 2007
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2007 2006 2006
(restated) (restated)
Note Unaudited Unaudited Audited
Continuing # # #
Operations
Revenue 35,875 16,503 31,337
Cost of sales (31,323) (12,893) (22,116)
Gross profit 4,552 3,610 9,221
Administrative expenses (190,431) (124,136) (253,257)
Amortisation of
intangible assets (2,868) - (3,971)
Results from
operating activities (188,747) (120,526) (248,007)
Finance income 4,497 2,368 4,617
Finance expense (8,586) (10,391) (11,540)
Net finance costs (4,089) (8,023) (6,923)
Loss before taxation (192,836) (128,549) (254,930)
Income tax expense - - -
Loss for the period (192,836) (128,549) (254,930)
Loss per
ordinary share 4 (0.11)p (0.10)p (0.16)p
There were no recognised gains or losses other than the loss for the financial
period.
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS)
For the six month period to 30 June 2007
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2007 2006 2006
Unaudited Unaudited Audited
(restated) (restated)
# # #
Total recognised
loss for the period (192,836) (128,549) (254,930)
Equity shareholders'
funds brought forward 984,221 1,239,551 1,239,151
Equity shareholders'
funds carried forward 791,385 1,111,002 984,221
UNAUDITED BALANCE SHEET
At 30 June 2007
At At At 31
30 June 30 June December
2007 2006 2006
(restated) (restated)
Unaudited Unaudited Audited
# # #
Assets
Goodwill 892,755 892,755 892,755
Other intangible assets 50,523 56,136 53,391
Plant, Equipment and Motor Vehicle 15,649 1,617 15,658
Total non-current assets 958,927 950,508 961,804
Current assets
Inventories 22,382 22,770 23,041
Trade and other receivables 78,462 58,943 62,085
Cash and cash equivalents 263,102 588,183 401,064
Total current assets 363,946 669,896 486,190
Total assets 1,322,873 1,620,404 1,447,994
Current liabilities
Loans and borrowings (25,730) (179,357) (36,000)
Trade and other payables (308,833) (330,045) (232,716)
Total current liabilities (334,563) (509,402) (268,716)
Non-current liabilities
Loans and borrowings (102,760) - (100,892)
Trade and other payables (94,165) - (94,165)
Total non-current liabilities (196,925) - (195,057)
Total liabilities (531,488) (509,402) (463,773)
Net assets 791,385 1,111,002 984,221
Equity
Share capital 178,633 178,933 178,633
Share premium account 1,420,944 1,421,044 1,420,944
Capital Redemption Reserve account 2,667,179 2,667,179 2,667,179
Retained earnings (3,475,371) (3,156,154) (3,282,535)
Total equity 791,385 1,111,002 984,221
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS (IFRS)
For the six month period to 30 June 2007
Note 6 months 6 months 12 months
ended 30 ended 30 ended 31
June June December
2007 2006 2006
(restated) (restated)
# # #
Net cash outflow from
operating activities 5 (132,795) (296,393) (388,633)
Cash flows from investing
activities
Purchase of
subsidiary undertaking - - (35,000)
Purchase of
plant and equipment (1,262) (1,249) (20,512)
Interest received 4,497 2,368 4,617
Net cash inflow /
(outflow) from
investing activities 3,235 1,119 (50,895)
Cash flows from financing
activities
Proceeds from
issue of share capital - 1,125,000 1,122,000
Payment of
transaction costs - (241,543) (238,943)
Net cash from
financing activities - 883,457 883,057
(Decrease)/Increase in cash
and cash equivalents 6 (129,560) 588,183 443,529
NOTES TO THE INTERIM RESULTS
For the six month period to 30 June 2007
1 BASIS OF PREPARATION OF INTERIM REPORT
The information for the period ended 30 June 2007 is not audited and does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985. The statutory accounts for the year ended 31 December 2006 were given an
unqualified audit report and have been adjusted for the adoption of IFRS. A copy
of the statutory accounts for that year has been delivered to the Registrar of
Companies.
The interim accounts for the six month period to 30 June 2006 were also
unaudited.
2 ACCOUNTING POLICIES
Basis of Accounting
The Interim report has been prepared using accounting policies consistent with
International Financial Reporting Standards (IFRS) for the first time. The
disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS
are given in note 8. The financial statements have been prepared under the
historical cost basis. The principal accounting policies adopted are set out
below:
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company (its subsidiaries) made up to
30 June and 31 December each year. Control is achieved where the Company has the
power to govern the financial and operating policies so as to obtain benefits
from its activities.
On acquisition, the assets and liabilities and contingent liabilities of a
subsidiary are measured at their fair values at the date of acquisition. Any
excess of the cost of acquisition over the fair values of the identifiable net
assets acquired is recognised as goodwill. Any deficiency of the cost of
acquisition below the fair values of the identifiable net assets (i.e. discount
on acquisition) is credited to the income statement in the period of
acquisition.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies into line with those used by the
group.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
Goodwill
Goodwill arising on consolidation represents the excess cost of acquisition over
the group's interest in the fair value of the identifiable assets and
liabilities of a subsidiary.
Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is recognised immediately in the income statement and
is not subsequently reversed. Goodwill arising on acquisition before the date of
transition to IFRS has been retained at the previous UK GAAP amounts subject to
being tested for impairment at that date.
On disposal of a subsidiary the attributable amount of goodwill is included in
the determination of the profit or loss on disposal.
Revenue recognition
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods and services provided in
the normal course of business, net of discounts, VAT and other sales-related
taxes.
Other Income
Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate
that discounts estimated future cash receipts through the expected life of the
financial asset to that asset's net carrying amount.
Taxation
In view of the Group's tax losses carried forward, there is no tax charge
included in the six months under review.
Taxable loss differs from net loss as reported in the income statement because
it excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method. Deferred
tax liabilities are generally recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is probable that
taxable profits will be available against which deductible temporary differences
can be utilised. Such assets and liabilities are not recognised if the temporary
difference arises from goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a transaction that
affects neither the tax profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries except where the Group is able to control
the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that is no longer probable that sufficient
taxable profits will be available to allow all, or part, of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset is realised. Deferred tax is
charged or credited in the income statement, except when it relates to items
charged or credited directly to equity, in which case the deferred tax is also
dealt with in equity.
Plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and any
recognised impairment loss.
Depreciation is charged so as to write off the cost of assets over their
estimated useful lives, as follows:
Plant and equipment 25% straight line
Motor vehicle 25% reducing balance
The gain or loss arising on the disposal or retirement of an asset is determined
as the difference between the sales proceeds and the carrying amount of the
asset and is recognised in income.
Intellectual property rights, Patents, licences and databases
Intellectual property rights, patents and databases are valued at cost and are
amortised on a straight line basis over their useful economic lives of 20/10
years, 10 years, and one year respectively.
Impairment of tangible and intangible assets excluding goodwill
At each balance sheet date, the Group reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication that
those assets have suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where the asset does not generate cash
flows that are independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs. An
intangible asset with an indefinite useful life is tested for impairment
annually and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair values less costs to sell and value in
use. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the
asset for which the estimate of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to
be less than its carrying amount, the carrying amount of the asset
(cash-generating unit) is reduced to its recoverable amount. An impairment loss
is recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset
(cash-generating unit) is increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised
for the asset (cash-generating unit) in prior years. A reversal of an impairment
loss is recognised as income immediately, unless the relevant asset is carried
at a revalued amount, in which case the reversal of the impairment loss is
treated as a revaluation increase.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
comprises direct materials. Cost is calculated using the first in first out
(FIFO) basis. Net realisable value represents the estimated selling price less
all estimated costs of completion and costs to be incurred in marketing and
selling.
Trade receivables
Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowances for estimated irrecoverable amounts.
Trade payables
Trade payables are not interest bearing and are stated at their nominal value.
3 DIVIDENDS
The Company will not be declaring an interim dividend.
4 LOSS PER SHARE
The calculation is based on the loss attributable to ordinary shareholders
divided by the weighted average number of ordinary shares in issue during the
period as follows:
6 months ended 36 months ended 30 12 months ended 31
2007 June December
2006 2006
(restated) (restated)
# # #
Loss for the period 192,836 128,549 254,930
Weighted average number of shares 178,633,198 132,533,198 159,706,115
5 CASH FLOWS FROM OPERATING ACTIVITIES
6 months ended 30 6 months ended 30 12 months ended 31
June June December
2007 2006 2006
(restated) (restated)
# # #
Results from operating activities (188,747) (120,526) (248,007)
Adjustments for:
Depreciation 1,271 194 5,416
Amortisation of intangible assets 2,868 - 3,971
Change in inventories 659 (4,757) (5,028)
Change in trade and other receivables (16,377) (34,283) (37,425)
Change in trade and other payables 76,117 (126,630) (96,020)
Interest paid (8,586) (10,391) (11,540)
Net cash outflow from operating activities (132,795) (296,393) (388,633)
6 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN CASH AND CASH EQUIVALENTS
6 months ended 30 6 months ended 30 12 months ended 31
June June December
2007 2006 2006
# # #
(Decrease)/Increase in cash and cash equivalents in (129,560) 588,183 443,529
the period
Opening cash and cash equivalents (net of bank 264,172 (179,357) (179,357)
borrowings)
Closing cash and cash equivalents (net of bank 134,612 408,826 264,172
borrowings)
7 POST BALANCE SHEET EVENT - ORDINARY SHARE CAPITAL
On 31 August 2007 and 14 September 2007, the company issued, by way of private
placements, 111,905,047 ordinary shares of 1p each, raising # 285,000 (net of
expenses) to be used for the working capital for the group.
8 EXPLANATION OF TRANSITION TO IFRS
The Group has applied IFRS 1 "First Time Adoption of International Financial
Reporting Standards" as a starting point for reporting under IFRS. The Group's
date of transition is 1 January 2006 and comparative information has been
restated to reflect in the Group's adoption of IFRS except where otherwise
required or permitted by IFRS 1.
IFRS 1 requires an entity to comply with each IFRS and IAS effective at the
reporting date for its first financial statements prepared under IFRS. As a
general rule, IFRS 1 requires such standards to be applied retrospectively.
However, the standard allows several optional exemptions from full retrospective
application.
The Group has elected to take advantage of the following exemption:
* business combinations made prior to 1 January 2006 will not be accounted
for under IFRS 3 "Business Combinations" and as such the value of goodwill
in the balance sheet at that date will be the same amount under IFRS as that
recorded in the UK GAAP financial statements, subject to the completion of
an annual impairment review
The reconciliation of equity at 31 December 2006 (date of last UK GAAP financial
statements) and the reconciliation of loss for 2006, as required by IFRS 1,
including the significant accounting policies are set out below. The
reconciliation of equity at 30 June 2006 is also included below to enable a
comparison of the 2007 published interim figures with those published in the
corresponding period of the previous financial year.
Reconciliation of equity as at 30 June 2006
UK GAAP Effect of transition IFRS
to IFRS
# # #
Non-current assets
Goodwill 868,188 24,567 892,755
Other intangible asset 56,136 - 56,136
Plant, Equipment and Motor Vehicle 1,617 - 1,617
Total non-current assets 925,941 24,567 950,508
Equity
Share capital 178,933 - 178,933
Share premium account 1,421,044 - 1,421,044
Capital redemption reserve account 2,667,179 - 2,667,179
Retained earnings (3,180,721) 24,567 (3,156,154)
Total equity 1,086,435 24,567 1,111,002
Reconciliation of equity as at 31 December 2006
UK GAAP Effect of transition IFRS
to IFRS
# # #
Non-current assets
Goodwill 843,229 49,526 892,755
Other intangible assets 53,391 - 53,391
Plant, Equipment and Motor Vehicle 15,658 - 15,658
Total non-current assets 912,278 49,526 961,804
Equity
Share capital 178,633 - 178,633
Share premium account 1,420,944 - 1,420,944
Capital redemption reserve account 2,667,179 - 2,667,179
Retained earnings (3,332,061) 49,526 (3,282,535)
Total equity 934,695 49,526 984,221
Reconciliation of loss for the year ended 31 December 2006
UK GAAP Effect of transition IFRS
to IFRS
# # #
Continuing operations
Revenue 31,337 - 31,337
Cost of sales (22,116) - (22,116)
Gross profit 9,221 - 9,221
Administrative expenses (253,257) - (253,257)
Amortisation of intangible assets (3,971) - (3,971)
Amortisation of goodwill (49,526) 49,526 -
Results from operating activities (297,533) 49,526 (248,007)
Net interest payable (6,923) - (6,923)
Loss before taxation (304,456) 49,526 (254,930)
Income tax expense - - -
Loss for the period (304,456) 49,526 (254,930)
IAS 38 Goodwill
IAS 38 requires goodwill to be frozen as at the date of transition to IFRS, I
January 2006, and to be subject to review for impairment rather than regular
amortisation. Previously amortised amounts for the period ended 30 June 2006 and
the year ended 31 December 2006 of # 24,567 and # 49,526 respectively have been
reversed in the transition to IFRS in the income statement. The effect of the
transition on the balance sheet is # 24,567 and # 49,526 respectively.
Adjustments to cash flow statement
Apart from changes in format, there are no other significant changes.
END
This information is provided by RNS
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