Final Results
September 30 2009 - 1:00AM
UK Regulatory
TIDMSGG
30 September 2009
Sterling Green Group plc
("Sterling" or "the Company")
Final Results for the year ended 31 March 2009
CHAIRMAN'S STATEMENT
Introduction and review of activities
I am pleased to present the financial statements of Sterling Green Group plc
and its subsidiaries ("the Group") covering the year ended 31 March 2009.
Results and dividends
Revenue for the year ended 31 March 2009 was GBP1,966,000 (15 month period ended
31 March 2008 - GBP1,309,000). Revenue was made up of GBP1,609,000 (15 month period
ended 31 March 2008 - GBP970,000) from debt management services and GBP357,000 (15
month period ended 31 March 2008 - GBP339,000) relating to mortgage business.
The Group loss after taxation for the year amounted to GBP347,000 (15 month
period ended 31 March 2008 - GBP1,648,000). The Directors are not able to
recommend the payment of a dividend.
Trading review
In the Chairman's Statement dated 30 September 2008 which accompanied the 2008
financial statements, I reported that the Board had overseen a significant
reduction in the Group's operational costs, following amongst other things, a
streamlining of the senior management team.
Those events have enabled the Group to show, at an operating level, a profit of
GBP31,000 for the second half of the financial year ended 31 March 2009, having
already reported an interim operating loss for the 6 month period ended 30
September 2008 of GBP352,000. This turnaround reflects the combination of reduced
operating costs and increased revenues.
Current performance and future developments
The Group has started the new financial year as a much more streamlined
business, with a lower overhead base and improving recurring revenues in its
debt management business. The current economic climate in the UK is enabling
the Group to increase its customer numbers at a faster rate than that seen
during the year ended 31 March 2009. At the present time, the Group already has
in excess of 3,000 live clients and the Board believe that the resulting rising
levels of recurring income give the Group a solid foundation on which to build
a profitable future.
The Group's working capital position remains challenging. The Group is
currently operating within its existing borrowing facilities and based on
forecasts prepared for the period ended 31 March 2011 management remain
confident that this situation will continue throughout the forecast period.
Should those forecasts not be achieved, however, the Group will need to reduce
its operating costs further and will be required to consider raising additional
capital through the issue of further equity or through increased bank or other
facilities.
Further regulation in the UK debt management industry appears inevitable as
competition in the sector continues to increase. The Board will welcome the
introduction of any new regulation and considers that the Group's existing
procedures and systems meet with industry best practice. The introduction of
new regulation often leads to acquisition opportunities and the Board considers
that the acquisition of debt management businesses or debt management
portfolios remains a viable option for increasing Group revenues and
profitability in the short term.
J M Edelson
Chairman
29 September 2009
Further Enquiries:
Sterling Green Group plc Tel: +44 161 975 5757
Michael Edelson
John East & Partners Limited, a subsidiary of Merchant Tel: +44 20 7628 2200
Securities Plc
David Worlidge / Simon Clements
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2009
Note Year ended Period ended
31 March 31 March
2009 2008
GBP000 GBP000
Revenue 1,966 1,309
Cost of sales (1,069) (1,423)
Gross profit/(loss) 897 (114)
Administrative expenses (1,218) (1,538)
Loss from operations (321) (1,652)
Investment income 5 24
Finance costs (49) (20)
Loss on ordinary activities before taxation (365) (1,648)
Income tax credit 2 18 -
Loss on ordinary activities after taxation (347) (1,648)
attributable to equity holders of the
parent
Loss per share - basic and diluted 3 (0.12p) (0.70p)
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2009
Note 2009 2008
GBP000 GBP000
Non-current assets
Intangible assets 1,115 1,115
Property, plant and equipment 209 309
Total non-current assets 1,324 1,424
Current assets
Trade and other receivables 142 141
Cash and cash equivalents 4 182 180
Total current assets 324 321
Current liabilities
Trade and other payables (319) (318)
Current tax liabilities - (18)
Borrowings (86) (284)
Total current liabilities (405) (620)
Net current liabilities (81) (299)
Non-current liabilities
Borrowings (318) (153)
Total non-current liabilities (318) (153)
Net assets 925 972
Equity
Called up share capital 288 280
Share premium account 1,710 1,518
Share capital to be issued 100 -
Capital reserve 6 6
Other reserve 891 891
Accumulated losses (2,070) (1,723)
Total equity 925 972
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2009
Note Year ended Period ended
31 March 31 March
2009 2008
GBP000 GBP000
Cash flows used in operating activities
Loss before tax (365) (1,648)
Adjustments for:
Depreciation of property, plant and equipment 101 113
Investment income (5) (24)
Finance costs 49 20
Operating cash flows before movement in (220) (1,539)
working capital
Increase in trade and other receivables (1) (46)
Increase in trade and other payables 1 88
Net cash used in operating activities (220) (1,497)
Cash flows from investing activities
Investment income received 5 24
Purchase of property, plant and equipment (1) (389)
Acquisition of subsidiary, net of cash - (29)
acquired
Net cash from/(used in) investing activities 4 (394)
Cash flows from financing activities
Capital element of lease payments (85) (68)
Finance leases entered into - 307
Loans advanced 250 -
Issue of ordinary share capital, net of costs 200 1,593
Proceeds in advance of issue of share capital 100 -
Finance costs paid (49) (20)
Net cash from financing activities 416 1,812
Net increase/(decrease) in cash and cash 200 (79)
equivalents
Cash and cash equivalents at the start of the (18) 61
year
Cash and cash equivalents at the end of the 4 182 (18)
year
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2009
Attributable to equity holders of the parent
Share Share Share Capital Other Accumulated Total
capital premium capital reserve reserve losses
account to be
issued
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 January 2007 85 - - 6 - (75) 16
Loss for the - - - - - (1,648) (1,648)
period
Issue of share 195 1,677 - - 891 - 2,763
capital
Costs of share - (159) - - - - (159)
issue
At 31 March 2008 280 1,518 - 6 891 (1,723) 972
Loss for the year - - - - - (347) (347)
Issue of share 8 192 - - - - 200
capital
Share capital to - - 100 - - - 100
be issued
At 31 March 2009 288 1,710 100 6 891 (2,070) 925
Other reserve
The other reserve is a merger reserve created on the acquisition of Sterling
Green Limited.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2009
1. BASIS OF PREPARATION
The financial information set out above does not constitute the Company's
statutory financial statements for the period ended 31 March 2008 and for the
year ended 31 March 2009, but is derived from those financial statements. The
Auditors have reported on those financial statements; their reports were
unqualified and did not contain statements under the Companies Act 1985,
sections 237(2) or (3).
The financial statements from which the financial information set out above is
derived have been prepared in accordance with International Financial Reporting
Standards as adopted by the European Union (IFRS).
The Board has considered the Group's financial position and trading prospects
using detailed forecasts covering the period ending 31 March 2011. Those
forecasts incorporate the current drawn down loan facility which is confirmed
as available until 30 September 2010. There are no financial covenants attached
to that facility. Accordingly, the Board considers that there will be no
breaches of financial covenants during the period to 30 September 2010. Having
made appropriate consideration, the Board believes that it has adequate
resources to continue trading for the foreseeable future, and accordingly, the
going concern basis has been adopted in preparing these financial statements.
2. INCOME TAX CREDIT
Year ended Period ended
31 March 31 March
2009 2008
GBP000 GBP000
Current tax:
Income tax credit 18 -
The income tax credit is calculated at 28% (period ended 31 March 2008 - 30%)
of the estimated assessable loss for the year.
The income tax credit for the year can be reconciled to the income statement as
follows:
Year ended Period ended
31 March 31 March
2009 2008
GBP000 GBP000
Loss before tax (365) (1,648)
Loss on ordinary activities multiplied by the (102) (494)
relevant standard rate of income tax in the UK of
28% (2008 - 30%)
Effect of:
Expenses not deductible for tax purposes 6 18
Depreciation for year in excess of capital 28 34
allowances
Utilisation of losses 18 -
Losses carried forward 68 442
Current tax credit for the year 18 -
Unrecognised deferred tax assets
The following deferred tax assets have not been brought into account as assets:
2009 2008
GBP000 GBP000
Tax losses 476 333
Temporary differences 56 23
3. LOSS PER SHARE
The calculation of basic loss per share is based on the following:
Basic Year ended Period ended
31 March 31 March
2009 2008
Loss for the year (GBP000) (347) (1,648)
Weighted average number of shares 287,569,637 235,986,036
Loss per share (pence) (0.12) (0.70)
Diluted loss per share is calculated by adjusting the weighted average number
of ordinary shares in issue assuming conversion of all dilutive potential
ordinary shares. During the year the Company's potential ordinary shares
consist of share options, warrants and deferred consideration. Due to losses in
the current year and preceding period there are no dilutive ordinary shares.
4. NOTES TO THE CASHFLOW STATEMENT
4.1 Cash and cash equivalents
Cash and cash equivalents consist of bank balances and bank overdrafts. Cash
and cash equivalents included in the cash flow statement comprise the following
balance sheet amounts:
2009 2008
GBP000 GBP000
Cash at bank 182 180
Bank overdrafts - (198)
Cash and cash equivalents 182 (18)
4.2 Significant non-cash transactions
During the comparative period the Group acquired property, plant and equipment
with a total cost of GBP340,000 of which GBP307,000 was acquired by means of
finance leases.
Part of the purchase price for the acquisition of Sterling Green Limited during
the comparative period comprised ordinary shares. The fair value of the shares
issued was GBP950,000.
5. DIVIDEND
The directors are not able to recommend the payment of a dividend.
6. COPIES OF THE REPORT & ACCOUNTS
Copies of the Report & Accounts will be posted to shareholders shortly and are
also available from the Company's registered office at Number 14, The
Embankment, Vale Road, Heaton Mersey, Stockport, Cheshire SK4 3GN and from the
Company's website www.sterlinggreen.co.uk.
END
Sterling Green (LSE:SGG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sterling Green (LSE:SGG)
Historical Stock Chart
From Jul 2023 to Jul 2024
