TIDMDAIP
RNS Number : 0483W
Daily Internet PLC
20 December 2013
20 December 2013
Daily Internet plc
("Daily Internet" or "the Group")
Interim Results
Daily Internet plc, the hosting and cloud infrastructure
provider, is pleased to announce its unaudited interim results for
the six months ended 30 September 2013.
Highlights
Period under review:
-- Revenue of GBP802,000 (six months ended 30 September 2012: GBP764,000);
-- Gross profit of GBP377,000 (six months ended 30 September 2012: GBP390,000);
-- Number of active domains increased to 173,000; and
-- Number of active hosting services increased to 21,000.
Post period end:
-- Acquisition of Netplan Internet Solutions Limited adding
critical mass and significantly expanding the Group's product
reach;
-- Excluding the acquisition Daily Internet is cash neutral
before PLC costs on a monthly basis;
-- Including the acquisition Daily Internet is cash positive on a monthly basis; and
-- Group trading in-line with expectations with rationalised
costs and business wins in all areas.
For further information please contact:
Daily Internet plc
Abby Hardoon, Managing Director +44 (0)115 973 7260
Sanlam Securities UK Limited (Nominated Adviser
and Joint Broker)
Simon Clements/Virginia Bull/Catherine Miles +44 (0)20 7628 2200
Loeb Aron & Company Limited (Joint Broker)
Dr Frank Lucas/Peter Freeman +44 (0)20 7628 1128
Walbrook PR
Bob Huxford/Guy McDougall/Paul Cornelius +44 (0)20 7933 8780
Chairman's Statement
Daily Internet continued to make steady progress in the period,
showing growth in revenues from new business wins and strong
recurring revenue. Revenue grew 5% against the prior period and as
at 30 September 2013 Daily Internet provided web hosting services
to over 50,000 customers throughout the UK, with 63% of these
customers bringing repeat business.
During the period the Company further diversified its service
range introducing new complementary products in-line with its
strategic aim of becoming a one-stop provider for hosting products
for SMEs and individuals.
Post the period end on 22 October 2013, the Group announced its
intention, subject to shareholder approval, to make its first
acquisition in-line with its stated 'buy and build' strategy, and a
placing to raise GBP3 million to fund the cash consideration
payable in respect of the acquisition. In November 2013, the Group
subsequently acquired 100% of the share capital of Netplan Internet
Solutions Limited ("Netplan"), an established managed hosting and
cloud infrastructure provider based in Coventry. The acquisition of
Netplan and its addition to the Group puts Daily Internet in a
strong position to take advantage of the fast growing cloud
infrastructure market whilst underpinning and accelerating Daily
Internet's continued growth. Netplan not only diversifies the
Group's product range but also moves the Group up the value chain
where revenues per service are significantly higher and stickier in
nature. We were delighted with the support shown by investors for
the acquisition and fundraising, including both new and existing
institutional investors, and look forward to creating shareholder
value throughout continued growth in both businesses.
Following the acquisition, the Company is proceeding with
streamlining the Group's operations with the goal of maximising
synergies and cross selling opportunities with Netplan while
emphasising continued organic growth in both companies. The Group
has also been able to rationalise costs for the combined Group
which will increase gross margins and accelerate the profitability
of the Group.
The Group is currently trading in-line with market expectations
with growth in both the original Daily Internet brand product set
and contracts wins for Netplan since its acquisition. We consider
the acquisition of Netplan to be a pivotal step for the Company,
and the Board is confident that 2014 will see further growth and
progress in creating a one-stop supplier of reliable, scalable,
high performance and resilient infrastructure based hosting
products within the fast-growing UK and European markets with a
multi-brand and multi-location strategy.
Michael Edelson
Chairman
20 December 2013
Consolidated Interim Statement of Comprehensive Income
Six months ended 30 September 2013
Restated
Unaudited Unaudited Audited
six months six months year
to to to
30 Sep 2013 30 Sep 2012 31 Mar
2013
Notes GBP,000 GBP,000 GBP,000
Revenue 802 764 1,557
Cost of sales (425) (374) (765)
Gross profit 377 390 792
Operating expenses before
amortisation, depreciation,
Phase II pre-launch costs
and share based payments 666 373 961
Depreciation and other amortisation 52 45 104
Phase II pre-launch costs - 98 278
AIM flotation costs - - 234
Share based payments - - 24
------------ ------------ ---------
Administrative expenses (718) (516) (1,601)
------------ ------------ ---------
Loss from operations (341) (126) (809)
------------ ------------ ---------
Investment income - - -
Finance costs (60) (47) (91)
------------ ------------ ---------
Loss before taxation (401) (173) (900)
Taxation - - -
------------ ------------ ---------
Total comprehensive loss attributable
to the equity holders of the
company (401) (173) (900)
Basic and fully diluted loss 2 GBP0.003 GBP0.003 GBP0.011
per share
============ ============ =========
The Group's results are derived from continuing operations.
Consolidated Interim Statement of Financial Position
As at 30 September 2013
Restated
Unaudited Unaudited Audited
30 Sep 30 Sep 31 Mar
2013 2012 2013
GBP,000 GBP,000 GBP,000
Assets
Non-current assets
Goodwill 392 392 392
Intangible assets - 2 -
Plant, property and equipment 278 192 330
---------- ---------- --------
670 586 722
Current assets
Trade and other receivables 42 38 49
Cash and cash equivalents 263 577 373
---------- ---------- --------
305 615 422
---------- ---------- --------
Total Assets 975 1,201 1,144
========== ========== ========
Equity and Liabilities
Equity attributable to the
equity shareholders of the
parent
Called up share capital 595 459 595
Share premium reserve 3,438 3,055 3,438
Share based payment reserve 173 242 173
Retained losses (5,061) (4,035) (4,660)
---------- ---------- --------
(855) (279) (454)
---------- ---------- --------
Non current liabilities
Obligations under finance
leases 82 48 127
Convertible loan notes 269 269 260
Other loans 605 405 405
---------- ---------- --------
956 722 792
---------- ---------- --------
Current liabilities
Trade and other payables 791 726 730
Obligations under finance
leases 83 32 76
---------- ---------- --------
874 758 806
---------- ---------- --------
Total Equity and Liabilities 975 1,201 1,144
========== ========== ========
Consolidated Interim Statement of Changes in Equity
for the six months to 30 September 2013
Attributable to equity holders of the parent
Share
Share premium Other Accumulated
capital account reserve losses Total
GBP,000 GBP,000 GBP,000 GBP,000 GBP,000
At 1 April 2012 313 2,629 242 (3,862) (678)
Loss and total comprehensive
income for the year - - - (173) (173)
Issue of share capital 146 426 - - 572
---------- ---------- ---------- ------------ --------
At 30 September 2012
(restated) 459 3,055 242 (4,035) (279)
Loss and total comprehensive
income for the period - - - (727) (727)
Issue of share capital 136 440 - - 576
Expenses of share issue - (57) - - (57)
Movement in share option
reserve (78) 102 24
Equity element of convertible
loan note - - 9 - 9
---------- ---------- ---------- ------------ --------
At 31 March 2013 595 3,438 173 (4,660) (454)
Loss and total comprehensive
income for the period - - - (401) (401)
---------- ---------- ---------- ------------ --------
At 30 September 2013 595 3,438 173 (5,061) (855)
---------- ---------- ---------- ------------ --------
The following describes the nature and purpose of each
reserve within equity:
Reserve Description and purpose
Share Premium Amount subscribed for share capital in
excess of nominal values.
Other Reserve Amount reserved for share based payments
to be released over the life of the instruments.
Accumulated losses All other net gains and losses and transactions
with owners (e.g. dividends) not recognised
elsewhere.
Consolidated Interim Statement of Cash Flows
for the six months to 30 September 2013
Restated
Unaudited Unaudited Audited
six months six months year
to to to
30 Sep 2013 30 Sep 2012 31 Mar 2013
GBP,000 GBP,000 GBP,000
Cash flows used in operating activities
Loss generated from operations (341) (126) (809)
Adjustments for:
Depreciation and other amortisation 52 45 104
Share based payments - - 24
Operating cash flows before movement
in working capital (289) (81) (681)
------------ ------------ ------------
Decrease/(increase) in trade and
other receivables 7 9 (2)
Increase in trade and other payables 42 18 3
Net cash used in operating activities (240) (54) (680)
------------ ------------ ------------
Cash flows from investing activities
Payments to acquire property, plant
& equipment - (4) (242)
Net cash used in investing activities - (4) (242)
------------ ------------ ------------
Cash flows from financing activities
Issue of ordinary share capital - 572 1,091
Drawdown of loan facility 200 - -
Interest paid - (5) (5)
Loan note interest paid (13) (13) (26)
Interest element of finance lease
payments (19) (8) (20)
Capital repayment of finance leases (38) (19) (54)
New lease finance secured on assets - - 201
Net cash from financing activities 130 527 1,187
------------ ------------ ------------
Net (decrease)/increase in cash and
cash equivalents (110) 469 265
Cash and cash equivalents at the beginning
of the
period/year 373 108 108
------------ ------------ ------------
Cash and cash equivalents at the
end of the period/year 263 577 373
------------ ------------ ------------
Notes to the Consolidated Interim Financial Statements
1. Accounting policies
The financial information for the year ended 31 March 2013 set
out in this half yearly report does not constitute statutory
financial statements as defined in section 434 of the Companies Act
2006. The figures for the year ended 31 March 2013 have been
extracted from the Group financial statements for that year. Those
financial statements have been delivered to the Registrar of
Companies and included an independent auditor's report, which was
unqualified and did not contain a statement under section 493 of
the Companies Act 2006.
The half yearly financial information has been prepared using
the same accounting policies and estimation techniques as will be
adopted in the Group financial statements for the year ending 31
March 2014. The Group financial statements for the year ended 31
March 2013 were prepared under International Financial Reporting
Standards as adopted by the European Union. These half yearly
financial statements have been prepared on a consistent basis and
format with the Group financial statements for the year ended 31
March 2013. The comparative half year financial statements to 30
September 2012 previously prepared under UK GAAP have been restated
under IFRS. The provisions of IAS 34 'Interim Financial Reporting'
have not been applied in full.
The half year financial statements to 30 September 2013 have
neither been audited nor reviewed pursuant to guidance issued by
the Auditing Practices Board.
2. Loss per share
Unaudited Unaudited Audited
six months six months year
to to to
30 Sep 2013 30 Sep 2012 31 Mar 2013
GBP,000 GBP,000 GBP,000
------------ ------------ ------------
Loss for the financial year GBP401,000 GBP173,000 GBP900,000
attributable to shareholders
Weighted number of equity shares
in issue 118,984,892 63,260,254 84,800,825
Basic/diluted loss per share GBP0.003 GBP0.003 GBP0.011
------------ ------------ ------------
Since the conversion of potential ordinary shares to ordinary
shares would decrease the net loss per share, they are not
dilutive. Accordingly diluted loss per share is the same as basic
loss per share.
3. Post balance sheet events
On 18 November 2013 Daily Internet PLC raised GBP3 million in a
share placing to fund the initial consideration of the acquisition
of Netplan Internet Solutions Ltd. At this time GBP719,626 of debt
was capitalised. Full details can be found at
http://www.daily.co.uk/investors/company-announcements.html.
4. Availability of Interim Results
Copies of the interim report will be available from the
registered office of the Company at Number 14 Riverview Vale Road,
Heaton Mersey, Stockport, Cheshire SK4 3GN and from the Company's
website www.daily.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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