TIDMUFG
RNS Number : 1990Z
Ultimate Finance Group PLC
17 September 2009
17 September 2009
Ultimate Finance Group plc
Final Results
Ultimate Finance Group plc ("Ultimate"), the AIM-quoted factoring, invoice
discounting and financial solutions provider to the SME sector, announces its
Final Results for the year ended 30 June 2009.
Highlights
* Pre-tax profit increased by 196% to GBP406,000 (30 June 2008: GBP137,000)
* Proposed maiden dividend of 0.25p for the full year
* Client turnover financed ahead 24% to GBP212.6million (30 June 2008:
GBP171.8million)
* Earnings per share increased to 1.60p (30 June 2008: 0.13p)
* Back-to-back receivable financing arrangement with Lloyds TSB Commercial Finance
enhanced and extended until July 2012
* GBP9 million of GBP25 million banking facility remains available to grow client
base
* Salesforce continues to grow both in numbers and regional coverage
* South-east office operating successfully and moved to larger offices
* Northern office also operating successfully and about to move to larger offices
Clive Garston, Chairman, said: "Although trading conditions remain challenging,
Ultimate continues to expand its sales force, which now comprises nine
experienced individuals covering all the main regions of England and Wales.
Your board is confident about the future of the business and continues to take
all necessary steps to build sustainable shareholder value. Therefore,
notwithstanding current economic conditions, the board looks forward to the
future with confidence."
Further information:
Ultimate Finance Group plc:
+--------------------------------+----------------------------------------+
| Richard Pepler, Chief | +44 (0) 845 251 3030 |
| Executive | |
| rpepler@ultimatefinance.co.uk | |
+--------------------------------+----------------------------------------+
| Shane Horsell, Finance | +44 (0) 845 251 3030 |
| Director | |
| shorsell@ultimatefinance.co.uk | |
+--------------------------------+----------------------------------------+
| www.ultimatefinance.co.uk | |
+--------------------------------+----------------------------------------+
Media enquiries:
Allerton Communications
+-----------------------------------+---------------------------------------+
| Peter Curtain | +44 (0) 20 3137 2500 |
| peter.curtain@allertoncomms.co.uk | |
+-----------------------------------+---------------------------------------+
Nominated Adviser:
Arbuthnot Securities
+-------------------------------+----------------------------------------+
| John Prior | +44 (0) 20 7012 2000 |
| johnprior@arbuthnot.co.uk | |
+-------------------------------+----------------------------------------+
| Paul Gillam | +44 (0) 20 7012 2000 |
| paulgillam@arbuthnot.co.uk | |
+-------------------------------+----------------------------------------+
Chairman's Statement
Results
I am pleased to report that for the year ended 30 June 2009 Ultimate made a
profit before taxation of GBP406,000 (30 June 2008: GBP137,000). Turnover for
the year was GBP4,757,000 (30 June 2008: GBP4,337,000) and client turnover
financed in the year rose 24% to GBP212.6m (30 June 2008: GBP171.8m). Earnings
per share amounted to 1.60p (30 June 2008: 0.13p). In the current economic and
trading environment I believe this to be a very strong performance. Efforts have
been made to grow the business whilst continuing to be aware of the risk
associated with operating in the current climate.
The Ultimate cost base continues to be contained, with the sole justification
for any increase being to meet the necessary demands of a growing portfolio and
expanding business.
Dividend
Given the strong trading during the financial year, the ability of the Company
now to pay dividends and the Board's confidence in the future of the Company, we
are pleased to announce that the Company is proposing to pay a maiden dividend
of 0.25p per share, to be paid on 23 December 2009 to shareholders on the
register at the close of business on 27 November 2009.
The Company will work to maintain a progressive dividend policy going forward,
growing the dividend in line with earnings.
Funding
As has previously been announced the back-to-back receivable financing
arrangement with Lloyds TSB Commercial Finance has been enhanced and extended
until July 2012. I regard this as providing a platform from which the Company
can continue to grow. At 30 June 2009 the group had utilised GBP16.0m (30 June
2008: GBP11.2m) of the GBP25m facility (30 June 2008: GBP18m facility).
Risk management
Risk management is crucial to the success of the Ultimate business and Ultimate
maintains high standards of underwriting and risk management. Its credit control
staff are experienced in both client management and risk management. With the UK
economy in recession, inevitably there has been a marked increase in the number
of business failures. As a result, Ultimate has had to be increasingly careful
in guarding against the risk of fraud and financial failure. The Company is
selective in growing its client numbers and its underwriting procedures are
continually under review. We continue, however, to remain robust in our strict
underwriting procedures and risk management during these challenging times for
the UK economy.
In the longer term, the market for factoring, invoice discounting and
complementary products continues to present real growth opportunities and the
recession has increased the level and quality of enquiries.
Our clients continue to represent an appropriate spread of risk in terms of size
of investment, industry type and geographical location. The single largest
investment at the end of June 2009 was GBP565,000 (30 June 2008: GBP826,000),
which constituted 3% (30 June 2008: 6%) of total funds advanced.
People
The importance of a well trained and dedicated work force should not be
underestimated and I believe that the success of Ultimate Finance is entirely
attributable to its committed team. I would like to thank all my co-directors
and staff for their efforts and continued commitment to Ultimate in what have
been difficult economic conditions.
Outlook
Although trading conditions remain challenging, Ultimate continues to expand its
salesforce, which now comprises nine experienced individuals covering all the
regions of England and Wales.
Your board is confident about the future of the business and continues to take
all necessary steps to build sustainable shareholder value. Therefore,
notwithstanding current economic conditions, the board looks to the future with
confidence.
Clive R Garston
Chairman
Chief Executive's Review
Introduction
Ultimate Finance Group plc provides bespoke invoice discounting and factoring
facilities to carefully selected clients ranging from impressive start-ups to
well established small firms and medium-sized businesses. We cultivate personal
and transparent relationships with every client, providing a highly responsive
service. This is underpinned by a comprehensive, robust IT infrastructure to
provide clients with online access to their account information in real time.
Our distinctive approach has contributed to a substantial rise in the number of
new client enquiries and wins over the last financial year - a trend that
continues into the current year.
Developments
In July we announced that Lloyds TSB increased the Company's funding facility
from GBP18m to GBP25m, also extending the term from two to a minimum three
years. In the current economic climate, with lending so tight, we see this as an
endorsement of the business.
The Company continued to expand over the year. The opening of a new centre in
the South East in June 2008 underlined our commitment to providing a
high-quality service that is responsive and locally based. The operation has
proved a success and this year moved to new, larger offices in Tunbridge Wells,
under the direction of our regional managing director, David Wright, who was
recently appointed to the board of our main trading subsidiary, Ultimate Finance
Limited. He brings to the role substantial knowledge and a wealth of experience
gained in large organisations.
Our Northern operation is also doing well. Continued expansion has necessitated
our central Manchester office moves to larger premises in the coming months,
positioning us closer to the heart of the region's financial community and our
key introducers.
Ultimate Finance now operates across England and Wales, with an integrated
network of staff in nine locations, linked to regional offices in the South
West, South East and North.
Strategy
Since July 2007 the SME sector has been affected by rising numbers of business
failures. We have protected the Company from the negative influences of this by
applying principles of prudent lending.
Whilst we have experienced a significant increase in new enquiries, we have been
selective in taking on clients. We have avoided taking unnecessary risks,
chasing market share for its own sake, and straying into unfamiliar markets. We
have taken a broad view, focusing on quality businesses with solid foundations
and credible management.
We have built close personal relationships with all our clients, communicating
with them so we understand what is happening in their businesses. This approach,
together with our enforcement of strict underwriting and risk management
procedures, has proved its worth in these challenging times.
Prospects
We see opportunities for growth in the invoice finance market. Recession has
created a surge in new enquiries and many businesses are questioning the merits
of the overdraft as a source of funding. This, combined with our in-depth
understanding of the needs of SMEs, positions us well to explore a number of
exciting growth opportunities. These include the introduction of additional
white-labelled products, partnerships with leading brokers and other
intermediaries, and complementary forms of lending, such as asset finance and
trade finance. In times of tightened credit, companies turn to independent asset
financiers such as Ultimate - and we intend to take advantage of this situation
whilst adhering to our core principles of strict, robust business assessment and
underwriting.
Market instability, and the less focused approach of some of our competitors,
have provided an opportunity to recruit talented newcomers. We have added five
highly competent sales professionals, bringing the team up to a total of nine.
Performance
New enquiries increased by 77% during the year, leading to record levels of new
business in 11 out of the 12 months. This trend has continued into the new
financial year - in July and August 2009 we won 31 new clients.
Profitability has improved and we are optimistic that our careful growth
strategy, backed by our highly capable team, will see this continue.
People
We never underestimate the importance of people in this business, and have
strengthened our team by recruiting some of the industry's best people. We shall
continue to select the highest-calibre professionals to grow the business. New
recruits receive the appropriate blend of support and autonomy to achieve their
full potential, and are incentivised to deliver results.
We are committed to developing and maintaining close and mutually beneficial
relationships with our valued business introducers.
Conclusion
Consolidation in the industry during the past financial year brought with it a
number of challenges. Ultimate Finance has not only weathered this storm, it has
made strong progress. We are cautiously optimistic that the Company is able to
capitalise on the challenges and opportunities ahead. We countered a negative
trend by focusing on the fundamentals of good business and sound lending and by
adhering to our long-term strategy.
We have begun the financial year with a truly national sales force that is not
only bigger, but also substantially better. We benefit from a seasoned risk
management and support team, plus an enviable portfolio of sound clients.
We are therefore well positioned to emerge from this recession as an even
stronger player, with an improved market share.
Richard Pepler
Chief Executive
Consolidated Income Statement
for year ended 30 June 2009
+------------------------------------------------------+------+----------+----------+
| | Note | 2009 | 2008 |
+------------------------------------------------------+------+----------+----------+
| | | GBP000 | GBP000 |
+------------------------------------------------------+------+----------+----------+
| | | | |
+------------------------------------------------------+------+----------+----------+
| Revenue | | 4,757 | 4,337 |
+------------------------------------------------------+------+----------+----------+
| Cost of sales | | (492) | (784) |
+------------------------------------------------------+------+----------+----------+
| | | | |
+------------------------------------------------------+------+----------+----------+
| Gross profit | | 4,265 | 3,553 |
+------------------------------------------------------+------+----------+----------+
| Administrative expenses | | (3,861) | (3,415) |
+------------------------------------------------------+------+----------+----------+
| | | | |
+------------------------------------------------------+------+----------+----------+
| Operating profit | | 404 | 138 |
+------------------------------------------------------+------+----------+----------+
| Finance income | | 2 | 6 |
+------------------------------------------------------+------+----------+----------+
| Finance expenses | | - | (7) |
+------------------------------------------------------+------+----------+----------+
| | | | |
+------------------------------------------------------+------+----------+----------+
| Profit before tax | | 406 | 137 |
+------------------------------------------------------+------+----------+----------+
| Taxation | 2 | (86) | (112) |
+------------------------------------------------------+------+----------+----------+
| | | | |
+------------------------------------------------------+------+----------+----------+
| Profit for the year | | 320 | 25 |
+------------------------------------------------------+------+----------+----------+
| | | | |
+------------------------------------------------------+------+----------+----------+
| | | | |
+------------------------------------------------------+------+----------+----------+
| Earnings per share | 10 | | |
+------------------------------------------------------+------+----------+----------+
| Basic | | 1.60p | 0.13p |
+------------------------------------------------------+------+----------+----------+
| Diluted | | 1.60p | 0.13p |
+------------------------------------------------------+------+----------+----------+
All amounts relate to continuing activities and are attributable to equity
holders of the parent.
There were no recognised income and expense items (2008: nil) other than those
reflected in the above income statement.
Consolidated and Company Balance Sheets
At 30 June 2009
+-------------------------------+----------+----------+----------+----------+----------+
| | Note | Group | | Company | |
+-------------------------------+----------+----------+----------+----------+----------+
| | | 2009 | 2008 | 2009 | 2008 |
+-------------------------------+----------+----------+----------+----------+----------+
| | | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------------+----------+----------+----------+----------+----------+
| Non-current assets | | | | | |
+-------------------------------+----------+----------+----------+----------+----------+
| Investment in subsidiary | | - | - | 57 | 45 |
+-------------------------------+----------+----------+----------+----------+----------+
| Property, plant and equipment | | 72 | 104 | - | - |
+-------------------------------+----------+----------+----------+----------+----------+
| Deferred tax assets | 8 | 12 | 127 | - | - |
+-------------------------------+----------+----------+----------+----------+----------+
| | | 84 | 231 | 57 | 45 |
+-------------------------------+----------+----------+----------+----------+----------+
| Current assets | | | | | |
+-------------------------------+----------+----------+----------+----------+----------+
| Loans and other receivables | 3 | 19,020 | 13,871 | 3,352 | 3,310 |
+-------------------------------+----------+----------+----------+----------+----------+
| Cash and cash equivalents | 4 | 237 | 88 | 1 | 1 |
+-------------------------------+----------+----------+----------+----------+----------+
| | | 19,257 | 13,959 | 3,353 | 3,311 |
+-------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+-------------------------------+----------+----------+----------+----------+----------+
| Total assets | | 19,341 | 14,190 | 3,410 | 3,356 |
+-------------------------------+----------+----------+----------+----------+----------+
| Current liabilities | | | | | |
+-------------------------------+----------+----------+----------+----------+----------+
| Bank overdraft | 4 | (16,008) | (11,204) | - | - |
+-------------------------------+----------+----------+----------+----------+----------+
| Trade and other payables | 5 | (303) | (265) | (1) | (1) |
+-------------------------------+----------+----------+----------+----------+----------+
| Tax payable | | (123) | (146) | (10) | (54) |
+-------------------------------+----------+----------+----------+----------+----------+
| Total liabilities | | (16,434) | (11,615) | (11) | (55) |
+-------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+-------------------------------+----------+----------+----------+----------+----------+
| Net assets | | 2,907 | 2,575 | 3,399 | 3,301 |
+-------------------------------+----------+----------+----------+----------+----------+
| Equity attributable to equity | | | | | |
| holders of the parent | | | | | |
+-------------------------------+----------+----------+----------+----------+----------+
| Share capital | 6 | 1,000 | 1,000 | 1,000 | 1,000 |
+-------------------------------+----------+----------+----------+----------+----------+
| Share premium | 7 | 1,949 | 1,949 | 1,949 | 1,949 |
+-------------------------------+----------+----------+----------+----------+----------+
| Retained earnings | 7 | (42) | (374) | 450 | 352 |
+-------------------------------+----------+----------+----------+----------+----------+
| Total equity | | 2,907 | 2,575 | 3,399 | 3,301 |
+-------------------------------+----------+----------+----------+----------+----------+
| | | | | | |
+-------------------------------+----------+----------+----------+----------+----------+
This preliminary statements was approved by the board of directors on 16
September 2009 and signed on its behalf by:
Richard Pepler
Director
Cash Flow Statements
for year ended 30 June 2009
+------------------------------------+------+----------+----------+----------+----------+
| | Note | Group | | Company | |
+------------------------------------+------+----------+----------+----------+----------+
| | | 2009 | 2008 | 2009 | 2008 |
+------------------------------------+------+----------+----------+----------+----------+
| | | GBP000 | GBP000 | GBP000 | GBP000 |
+------------------------------------+------+----------+----------+----------+----------+
| Cash flows from operating | | | | | |
| activities | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Profit before tax for the year | | 406 | 137 | 86 | 239 |
+------------------------------------+------+----------+----------+----------+----------+
| Adjustments for: | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Depreciation, amortisation and | | 70 | 79 | - | - |
| impairment | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Financial income | | (2) | (6) | - | - |
+------------------------------------+------+----------+----------+----------+----------+
| Financial expense | | 0 | 7 | - | - |
+------------------------------------+------+----------+----------+----------+----------+
| Equity settled share-based payment | | 12 | 12 | - | - |
| expenses | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Taxation | | - | - | | |
+------------------------------------+------+----------+----------+----------+----------+
| | | 486 | 229 | 86 | 239 |
+------------------------------------+------+----------+----------+----------+----------+
| (Increase)/decrease in loans and | | (5,113) | 917 | (42) | (263) |
| other receivables | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Increase/(Decrease) in trade and | | 38 | (280) | - | (2) |
| other payables | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| (Decrease) / Increase in tax | | (23) | 117 | (44) | 26 |
| payable | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| | | (5,098) | 754 | (86) | (239) |
+------------------------------------+------+----------+----------+----------+----------+
| Tax paid | | (7) | (28) | - | - |
+------------------------------------+------+----------+----------+----------+----------+
| Net cash from operating activities | | (4,619) | 726 | - | - |
+------------------------------------+------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Acquisition of property, plant and | | (38) | (54) | - | - |
| equipment | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Net cash from investing activities | | (38) | (54) | - | - |
+------------------------------------+------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Financial income | | 2 | 6 | - | - |
+------------------------------------+------+----------+----------+----------+----------+
| Financial expense | | - | (7) | - | - |
+------------------------------------+------+----------+----------+----------+----------+
| Net cash from financing activities | | 2 | (1) | - | - |
+------------------------------------+------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Net increase/(decrease) in cash | | (4,655) | 671 | - | - |
| and cash equivalents | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Cash and cash equivalents at 1 | | (11,116) | (11,787) | 1 | 1 |
| July | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| Cash and cash equivalents at 30 | | (15,771) | (11,116) | 1 | 1 |
| June | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
| | | | | | |
+------------------------------------+------+----------+----------+----------+----------+
Notes
(forming part of the financial statements)
1 Accounting policies
Basis of preparation and statement of compliance
Ultimate Finance Group plc (the "company") is a company incorporated in the UK.
The preliminary statement consolidates the results of the Company and its
subsidiaries (together referred to as the "group"). This statement was approved
by the board of directors on 16 September 2009.
The financial information set out above does not constitute the company's
statutory accounts for the years ended 30 June 2009 or 2008, but is derived from
those accounts. Statutory accounts for 2008 have been delivered to the Registrar
of Companies and those for 2009 will be delivered following the company's annual
general meeting. The auditors have reported on those accounts: their reports
were unqualified, did not draw attention to any matters by way of emphasis and
did not contain statements under s498 (2) or (3) Companies Act 2006.
The financial statements are prepared on the historical cost basis and are
presented in Pounds Sterling, the Group's functional and presentational
currency.
The preparation of the financial statements and this preliminary statement
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenue during the reporting period. The estimates and
associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results
of which form the basis of making the judgements about the carrying values of
assets and liabilities that are not readily apparent from other sources. Actual
results could differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis.
The accounting policies set out below have been applied consistently to all
periods presented in these consolidated financial statements.
Basis of consolidation
The financial information contained in the group financial statements and this
preliminary statement represent the results, cash flows, assets and liabilities
of the company and its subsidiaries made up to 30 June each year. Subsidiaries
are entities controlled by the Group. Control exists when the Group has the
power, directly or indirectly, to govern the financial and operating policies of
an entity so as to obtain benefits from its activities. In assessing control,
potential voting rights that are currently exercisable or convertible are taken
into account. The results of subsidiaries are included in the consolidated
results from the date that control commences until the date that control ceases.
All income and expenses and unrealised gains and losses arising on transactions
between entities within the group, and balances between entities within the
group that exist at the balance sheet date, are eliminated on consolidation.
Going Concern
The board is pleased to report that the back-to-back receivable financing
arrangement with Lloyds TSB Commercial Finance has been renewed and
enhanced until July 2012; this provides the opportunity for future growth. In
the longer term, the market for factoring and invoice discounting products
continues to present real growth opportunities, and the recession has increased
the level and quality of enquiries. We continue, however, to remain robust in
our strict underwriting procedures and risk management during these challenging
times for the UK economy.
The backing of Lloyds TSB Commercial Finance in the short to medium term
supports the directors in their opinion that the going concern basis of
preparation is appropriate.
Revenue recognition
Revenue comprises fees for the provision of invoice financing services, net of
Value Added Tax, and is recognised as follows:
a) Interest Income
Interest income and set up fee income and associated directly attributable set
up costs are recognised in the income statement for all financial assets
measured at amortised cost using the effective interest method. The effective
interest method is a method of calculating the amortised cost of a financial
asset and allocating the interest income over the relevant period. The effective
interest rate (EIR) is the rate that exactly discounts estimated future cash
flows through the expected life, or contractual term if shorter, of the
financial asset to the net carrying amount of the financial asset. When
calculating the EIR, the company estimates cash flows considering all
contractual terms of the financial instruments, but does not include an
expectation for future credit losses. Interest income is calculated and applied
to clients' accounts on a daily basis.
b) Service fee income
The company charges its clients a factoring fee for managing their sales ledgers
which is based on the value of invoices assigned. This fee is recognised in the
income statement on a straight line basis over the period in which the ledger
management service is provided.
c) Other Fee Income
Other fee income, which includes disbursements, is credited to the income
statement when the service has been provided or the disbursement expenditure
incurred.
Expenses
Operating lease payments
Leases are categorised as operating leases where the lessor retains
substantially all the risks and rewards of ownership of the leased asset. All
leased assets held by the group are categorised as operating leases.
Payments made under operating leases are recognised in the income statement on a
straight-line basis over the term of the lease. Lease incentives received are
recognised in the income statement as an integral part of the total lease
expense over the term of the lease.
Borrowing costs
Borrowing costs are included within cost of sales, these relate to the
back-to-back financing arrangement with Lloyds TSB Commercial Finance Ltd. The
facility is used to finance loans provided to clients and is backed by the
underlying debts of the clients.
Taxation
Income tax expense comprises current and deferred tax. Income tax expense is
recognised in the income statement except to the extent that relates to items
recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year,
using tax rates enacted or substantively enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet method, providing for temporary
differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the temporary differences relating to
investments in subsidiaries to the extent that they probably will not reverse in
the foreseeable future. Deferred tax is measured at the tax rates that are
expected to be applied to the temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted by the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilized. Deferred tax assets are reviewed at each reporting date and are
reduced to the extent that it is no longer probable that the related tax benefit
will be realised.
Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution pension plans are
recognised as an expense in the income statement as incurred.
Share-based payment transactions
The grant date fair value of options granted to employees is recognised as an
employee expense, with a corresponding increase recognised in retained earnings
within equity, over the period in which the employees become unconditionally
entitled to the options. The fair value of the options granted is measured at
grant date using an option valuation model, taking into account the terms and
conditions upon which the options were granted. The amount recognised as an
expense is adjusted to reflect the actual number of share options that vest
except where forfeiture is due only to share prices not achieving the threshold
for vesting.
Where the Company grants options over its own shares to the employees of its
subsidiaries it recognises, in its individual financial statements, an increase
in the cost of investment in its subsidiaries equivalent to the equity-settled
share-based payment charge recognised in its consolidated financial statements
with the corresponding credit being recognised directly in equity.
Following the release of the 2009 results a total of 360,000 share options will
be rebased at a price equivalent to the closing market price on the 18th
September 2009, but will now be subject to a performance condition. Of the
360,000 share options, 285,000 are shown as held by the directors in the table
above, the remaining 75,000 are held by other key staff within the business.
Segmental information
The group determines its business and geographical segments by reference to the
nature of business risks and returns and the group's system of internal
financial reporting. All the group's operations are based in the United Kingdom
and are considered to represent a single geographical and business segment.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation
and impairment losses.
Where parts of an item of property, plant and equipment have different useful
lives, they are accounted for as separate items of property, plant and
equipment.
Leases in which the Group assumes substantially all the risks and rewards of
ownership of the leased asset are classified as finance leases. Where land and
buildings are held under leases the accounting treatment of the land is
considered separately from that of the buildings. Leased assets acquired by way
of finance lease are stated at an amount equal to the lower of their fair value
and the present value of the minimum lease payments at inception of the lease,
less accumulated depreciation and impairment losses.
Depreciation is charged to the income statement on a straight-line basis over
the estimated useful lives of each part of an item of property, plant and
equipment. The estimated useful lives are as follows:
? plant and equipment 3 years
? fixtures and fittings 2-5 years
Investments
Investments in subsidiaries are carried at cost less impairment.
Financial assets
Management determine the classification of the Group's financial assets at
initial recognition into one of the following categories - loans and other
receivables, held-to-maturity financial assets, available-for-sale financial
assets and financial assets at fair value through profit or loss. The group has
not held any held-to-maturity, available for sale financial assets or financial
assets at fair value through profit or loss at any point during the year.
All financial assets are initially measured at fair value plus, in the case of
financial assets not classified as a fair value through income statement,
transaction costs that are directly attributable to their acquisition.
The Group initially recognises advances to clients and deposits on the date that
they are originated. These balances are included in loans and other receivables
and are initially recognised at fair value and subsequently measured at
amortised cost less impairment losses.
The amortised cost of a financial asset is the amount at which the financial
asset is measured at initial recognition, minus principal repayments, plus the
cumulative amortisation using the effective interest method of any difference
between the initial amount recognised and the maturity amount, minus any
reduction for impairment.
The Group derecognises a financial asset when the contractual rights to the cash
flows from the asset expire, or it transfers the rights to receive the
contractual cash flows on the financial asset in a transaction in which
substantially all the risks and rewards of ownership of the financial asset are
transferred.
Impairment of loans & receivables
In respect of loans and receivables, the Group assesses on an ongoing basis
whether there is objective evidence that an individual loan asset is impaired.
If any such indication exists, the assets' recoverable amount is estimated. An
impairment loss is recognised whenever the carrying amount of an asset exceeds
its recoverable amount. Impairment losses are recognised in the income
statement.
Impairment losses are reversed through the income statement if there is a change
in the estimates used to determine the recoverable amount.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank
overdrafts that are repayable on demand and form an integral part of the Group's
cash management are included as a component of cash and cash equivalents for the
purpose only of the statement of cash flows. Bank overdrafts are shown as
current liabilities in the balance sheet.
Foreign currency
Transactions in foreign currencies are translated at the foreign exchange rate
ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are translated at
the foreign exchange rate ruling at that date. Foreign exchange differences
arising on translation are recognised in the income statement. Non-monetary
assets and liabilities that are measured in terms of historical cost in a
foreign currency are translated using the exchange rate at the date of the
transaction.
2 Taxation
Recognised in the income statement
+------------------------------------------------------+------------+------------+
| | 2009 | 2008 |
+------------------------------------------------------+------------+------------+
| | GBP000 | GBP000 |
+------------------------------------------------------+------------+------------+
| Current tax expense | | |
+------------------------------------------------------+------------+------------+
| Current year | 18 | 53 |
+------------------------------------------------------+------------+------------+
| Adjustments for prior years | (47) | - |
+------------------------------------------------------+------------+------------+
| | (29) | 53 |
+------------------------------------------------------+------------+------------+
| Deferred tax expense | | |
+------------------------------------------------------+------------+------------+
| Origination and reversal of temporary | 107 | 50 |
| differences | | |
+------------------------------------------------------+------------+------------+
| Adjustment in respect of prior year | 8 | 9 |
+------------------------------------------------------+------------+------------+
| | 115 | 59 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Total tax in income statement | 86 | 112 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
Reconciliation of effective tax rate
+------------------------------------------------------+------------+------------+
| | 2009 | 2008 |
+------------------------------------------------------+------------+------------+
| | GBP000 | GBP000 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Profit for the year | 320 | 25 |
+------------------------------------------------------+------------+------------+
| Total tax expense | 86 | 112 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Profit excluding taxation | 406 | 137 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Tax using the UK corporation tax rate of 28% | 114 | 41 |
| (2008:28 %) | | |
+------------------------------------------------------+------------+------------+
| Small companies tax rate allowance | (2) | (4) |
+------------------------------------------------------+------------+------------+
| Non-deductible expenses | 13 | 8 |
+------------------------------------------------------+------------+------------+
| Other timing differences | - | 12 |
+------------------------------------------------------+------------+------------+
| Prior year adjustment | (39) | - |
+------------------------------------------------------+------------+------------+
| Effect of tax losses utilised | - | (3) |
+------------------------------------------------------+------------+------------+
| Reversal of IFRS adjustment to deferred income | - | 58 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Total tax expense | 86 | 112 |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
3 Loans and other receivables
+-------------------------------+------------+------------+------------+------------+
| | Group | | Company | |
+-------------------------------+------------+------------+------------+------------+
| | 2009 | 2008 | 2009 | 2008 |
+-------------------------------+------------+------------+------------+------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------------+------------+------------+------------+------------+
| Loans and receivables | 18,658 | 13,584 | - | - |
+-------------------------------+------------+------------+------------+------------+
| Prepayments | 337 | 260 | 7 | 11 |
+-------------------------------+------------+------------+------------+------------+
| Inter company balances | - | - | 3.345 | 3,299 |
+-------------------------------+------------+------------+------------+------------+
| Other Receivables | 25 | 27 | - | - |
+-------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------+------------+------------+------------+------------+
| | 19,020 | 13,871 | 3.352 | 3,310 |
+-------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------+------------+------------+------------+------------+
4 Cash and cash equivalents/ bank overdrafts
+-------------------------------+------------+------------+------------+------------+
| | Group | | Company | |
+-------------------------------+------------+------------+------------+------------+
| | 2009 | 2008 | 2009 | 2008 |
+-------------------------------+------------+------------+------------+------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------+------------+------------+------------+------------+
| Cash and cash equivalents per | 237 | 88 | 1 | 1 |
| balance sheet | | | | |
+-------------------------------+------------+------------+------------+------------+
| Bank overdrafts | (16,008) | (11,204) | - | - |
+-------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------+------------+------------+------------+------------+
| Cash and cash equivalents per | (15,771) | (11,116) | 1 | 1 |
| cash flow statements | | | | |
+-------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------+------------+------------+------------+------------+
5 Trade and other payables
+-------------------------------+------------+------------+------------+------------+
| | Group | | Company | |
+-------------------------------+------------+------------+------------+------------+
| | 2009 | 2008 | 2008 | 2008 |
+-------------------------------+------------+------------+------------+------------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------+------------+------------+------------+------------+
| Trade payables | (40) | (13) | - | - |
+-------------------------------+------------+------------+------------+------------+
| Non-trade payables and | (263) | (252) | (1) | (1) |
| accrued expenses | | | | |
+-------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------+------------+------------+------------+------------+
| | (303) | (265) | (1) | (1) |
+-------------------------------+------------+------------+------------+------------+
| | | | | |
+-------------------------------+------------+------------+------------+------------+
6Share capital
+----------------------------------------------------------------+--------+--------+
| | 2009 | 2008 |
+----------------------------------------------------------------+--------+--------+
| | GBP000 | GBP000 |
+----------------------------------------------------------------+--------+--------+
| Authorised | | |
+----------------------------------------------------------------+--------+--------+
| 40,000,000 Ordinary shares of GBP0.05 each | 2,000 | 2,000 |
+----------------------------------------------------------------+--------+--------+
| | | |
+----------------------------------------------------------------+--------+--------+
| Allotted, called up and fully paid | | |
+----------------------------------------------------------------+--------+--------+
| 19,997,018 Ordinary shares of GBP0.05 each | 1,000 | 1,000 |
+----------------------------------------------------------------+--------+--------+
| | | |
+----------------------------------------------------------------+--------+--------+
7 Capital and Reserves
Reconciliation of movement in capital and reserves - Group
+-------------------------------------------+----------+---------+----------+-----------+
| | Share | Share | Retained | Total |
| | capital | Premium | Earnings | Equity |
+-------------------------------------------+----------+---------+----------+-----------+
| | GBP000 | GBP000 | GBP000 | GBP000 |
+-------------------------------------------+----------+---------+----------+-----------+
| | | | | |
+-------------------------------------------+----------+---------+----------+-----------+
| Balance at 1 July 2008 | 1,000 | 1,949 | (374) | 2,575 |
+-------------------------------------------+----------+---------+----------+-----------+
| Total recognised income and expense | - | - | 320 | 320 |
+-------------------------------------------+----------+---------+----------+-----------+
| Equity-settled share based payment | - | - | 12 | 12 |
| transactions | | | | |
+-------------------------------------------+----------+---------+----------+-----------+
| | | | | |
+-------------------------------------------+----------+---------+----------+-----------+
| Balance at 30 June 2009 | 1,000 | 1,949 | (42) | 2,907 |
+-------------------------------------------+----------+---------+----------+-----------+
| | | | | |
+-------------------------------------------+----------+---------+----------+-----------+
8 Deferred tax assets and liabilities - Group
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
+--------------------------------------------------+--------------+--------------+
| | Assets |
+--------------------------------------------------+-----------------------------+
| | 2009 | 2008 |
+--------------------------------------------------+--------------+--------------+
| | GBP000 | GBP000 |
+--------------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------------+--------------+--------------+
| Tax value of losses carry-forward | - | 121 |
+--------------------------------------------------+--------------+--------------+
| Other timing differences | 12 | 6 |
+--------------------------------------------------+--------------+--------------+
| Net tax assets | 12 | 127 |
+--------------------------------------------------+--------------+--------------+
| | | |
+--------------------------------------------------+--------------+--------------+
Movement in deferred tax during the year
+----------------------------------------------------------------+--------------+
| | GBP000 |
+----------------------------------------------------------------+--------------+
| Brought forward | 127 |
+----------------------------------------------------------------+--------------+
| Origination and reversal of timing differences | (115) |
+----------------------------------------------------------------+--------------+
| | 12 |
+----------------------------------------------------------------+--------------+
| | |
+----------------------------------------------------------------+--------------+
9 Preliminary Statement of Results
This preliminary statement was approved by the Board on 16 September 2009. It is
not the company's statutory accounts.
The statutory accounts for the year ended 30 June 2009 have been audited and
have been approved by the Board of directors on 16 September 2009. The audit
report issued is unqualified. Copies of the Directors' Report and Consolidated
Financial Statements will be available on the company's website
www.ultimatefinance.co.uk and from the Group's Bristol office, Bradley
Pavilions, Pear Tree Road, Bradley Stoke, Bristol BS32 0BQ.
10 Earnings per share
The basic profit per share for the year to 30 June 2009 has been calculated from
the profit on ordinary activities after taxation of GBP320,213 (2008: GBP25,409)
and on the weighted average number of ordinary shares in issue during the year
of 19,997,018 (2008: 19,997,018).
The company has dilutive potential ordinary shares in respect of the 'Company
Share Option Plan'. The diluted earnings per share amounts to 1.60p (2008: 0.13p
as restated) and is based on profit on ordinary activities after taxation of
GBP320,213 (2008: GBP25,409) and 19,997,018 ordinary shares being the weighted
average of the shares in issue during the year adjusted to assume conversion of
all dilutive potential ordinary shares (2008: 20,000,934).
+------------------------------------------------------+------------+------------+
| | 2009 | 2008 |
| | Pence | Pence |
+------------------------------------------------------+------------+------------+
| | | |
+------------------------------------------------------+------------+------------+
| Basic earnings per share | 1.60 | 0.13 |
+------------------------------------------------------+------------+------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFUFWMSUSEEU
Ultimate Finance (LSE:UFG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ultimate Finance (LSE:UFG)
Historical Stock Chart
From Jul 2023 to Jul 2024
