RNS Number:3421D
Ultimate Finance Group PLC
27 September 2004
Ultimate Finance Group plc
Embargoed until 07:00 27 September 2004
Preliminary Statement of Results for the twelve months ended 30 June 2004
Ultimate Finance Group plc ("Ultimate", "the company" or "the group) provides
recourse factoring, invoice discounting and confidential invoice discounting
Financial highlights:
* Client sales financed increased by 119% to #40.4 million (2003: #18.4 million)
* Turnover increased by 144% to #1,183,506 (2003: #485,117)
* Loss on ordinary activities before taxation halved to #338,609 (2003:#663,083)
* Strong client base growth throughout England and Wales -up 80% to 106 clients
with total advances exceeding #5 million
* New banking facilities of #14 million in place to underpin further growth
* Current financial year has started well with 15 new client wins
* Third regional sales director recruited, based in the Midlands, to drive
growth
* Significant opportunities in UK factoring market (#8.8 bn advanced at the end
of 2003 on turnover of #117 bn - source: FDA members)
* Directors confident of continued progress
Brian Sumner, chief executive, commented:
"With increased banking facilities in place we shall continue to build the
national sales team as required to take advantage of the increasing number of
opportunities that are becoming available to us in a growing marketplace.
I am very encouraged by the influx of new business, most notably in the last
quarter of the year, and the group is particularly well placed to meet the
challenges of the next year".
Enquiries:
Brian Sumner,
Chief Executive Ultimate Finance Group plc 0870 872 1012 07976 406474
Richard Pepler,
Managing Director Ultimate Finance Group plc 0870 872 1013 07870 212180
Shane Dolan /
Chris Bradshaw Biddicks 020 7448 1000
Chairman's statement
Results
I am pleased to report that during the year under review, Ultimate's business
has achieved significant success in growing its income level and expanding its
client base. At the year end, Ultimate's client portfolio numbered 106 clients
and represents an 80% increase on the previous year (2003: 59).
Turnover for the period increased by 144% to #1,183,506 (2003: #485,117) with
recourse factoring products accounting for 90% of group turnover with the
remaining 10% being confidential invoice discounting. The loss on ordinary
activities before taxation was halved to #338,609 (2003: #663,083) with a loss
per share of 2.72p (2003: 5.91p).
Total sales financed during the year exceeded #40 million reflecting an increase
of almost 120% over the level of client turnover financed in the previous period
(2003; #18.4 million). At the year end, Ultimate had #9.0 million of debtors
under management (2003: #5.1 million) and funds advanced to clients of #5.1
million (2003: #2.8 million).
Staffing levels have increased during the year to underpin our reputation for
providing a quality service and we continue to dedicate the appropriate
resources to ensure the effectiveness of our risk management procedures. As at
30 June 2004, the operating group employed 16 staff (2003: 13) of which 9 are
employed in the operations department.
Funding
During the year the company increased its share capital as a result of a placing
and offer for subscription, which raised #1.2 million net of expenses. At the
same time, the company changed bankers to Lloyds TSB and replaced the previous
facilities provided by HBoS with a back-to-back receivables financing agreement
offering up to #14 million over a 19-month period ending 31 December 2005.
The proceeds of the share issue and the increased bank facilities available will
provide the group with the resource required to grow the business further.
Directors
As a result of the proportional reduction in shareholding held by Glenmore
Investments Ltd subsequent to the fundraising exercise conducted during the
year, Mark Harris has intimated his desire to resign as a director at the
forthcoming annual general meeting. I am grateful to him for the help and
assistance he has given in establishing Ultimate since its inception. I have
asked Derek Ashford to take over as chairman of the audit committee and I am
delighted that he has accepted.
Thanks
I am grateful to all my colleagues on the board for their consistent support and
guidance throughout the year and to our chief executive, Brian Sumner, and his
colleagues for continuing to expand and establish the company's business. I
would also like to thank all the employees of Ultimate for their dedication,
support and continuing efforts.
Outlook
The current financial year has started well with 15 clients added to our
portfolio in July and August. The Board has every confidence in the future.
Clive R Garston
Chairman
Consolidated profit and loss account
for the year to 30 June 2004
2004 2003
# #
Turnover 1,183,506 485,117
Administrative expenses (1,356,134) (1,140,077)
------------- -------------
Operating loss (172,628) (654,960)
Other interest receivable and similar income 5,096 22,722
Interest payable and similar charges (171,077) (30,845)
------------- -------------
Loss on ordinary activities before taxation (338,609) (663,083)
Tax on profit on ordinary activities - -
------------- -------------
Loss on ordinary activities after taxation (338,609) (663,083)
============= =============
Basic and fully diluted loss per share (note 6) (2.72)p (5.91)p
============= =============
All amounts relate to continuing activities.
The comparative period for 2003 reflects the trading period from 12 June 2002 to
30 June 2003.
There are no recognised gains or losses in the period except those reported
above.
Consolidated balance sheet
At 30 June 2004
Note 2004 2003
# #
Fixed assets
Tangible assets 42,792 29,566
Current assets
Debtors 1 5,220,028 2,883,433
Cash at bank and in hand 326,944 404,130
--------- ---------
5,546,972 3,287,563
Creditors: amounts falling due within one year 2 (3,642,215) (2,202,381)
--------- ---------
Net current assets 1,904,757 1,085,182
--------- ---------
Net assets 1,947,549 1,114,748
========= =========
Capital and reserves
Called up share capital 3 999,851 561,169
Share premium account 4 1,949,390 1,216,662
Profit and loss account 4 (1,001,692) (663,083)
--------- ---------
Shareholders' funds (all equity) 1,947,549 1,114,748
========= =========
These financial statements were approved by the Board of directors on 24
September 2004 and were signed on its behalf by:
Brian Sumner
Director
Consolidated cash flow statement
for the year to 30 June 2004
Note 2004 2003
# #
Reconciliation of operating loss to net cash
flow from operating activities
Operating loss (172,628) (654,960)
Depreciation charges 13,451 8,607
Increase in debtors (2,336,595) (2,883,433)
Increase in creditors 51,249 120,753
------------- -------------
Net cash outflow from operating activities (2,444,523) (3,409,033)
============= =============
Cash flow statement
Cash flow from operating activities (2,444,523) (3,409,033)
Returns on investments and servicing of 5 (165,981) (8,123)
finance
Capital expenditure 5 (26,677) (38,173)
------------- -------------
Cash outflow before financing (2,637,181) (3,455,329)
Financing 5 2,265,352 3,827,831
------------- -------------
(Decrease) / Increase in cash in the period (371,829) 372,502
============= =============
Reconciliation of net cash flow to movement
in net debt
(Decrease) / Increase in cash in the period (371,829) 372,502
Cash inflow from debt in the period (1,093,942) (2,050,000)
------------- -------------
Movement in net debt in the period (1,465,771) (1,677,498)
Net debt at the start of the period (1,677,498) -
------------- -------------
Net debt at the end of the period (3,143,269) (1,677,498)
============= =============
Reconciliation of movements in shareholders' funds
for the year to 30 June 2004
2004 2003
# #
Loss for the period (338,609) (663,083)
New share capital subscribed (net of issue 1,171,410 1,777,831
costs)
--------------- ---------------
Net addition to shareholders' funds 832,801 1,114,748
Opening shareholders' funds 1,114,748 -
--------------- ---------------
Closing shareholders' funds 1,947,549 1,114,748
=============== ===============
On 14 April 2004, by or pursuant to resolutions of the company passed on that
date 3,473,646 new ordinary shares were placed at a price of 15p, raising
#521,047, before expenses for the development of the company's factoring and
invoice discounting business.
On 27 May 2004, by or pursuant to resolutions of the company passed on that date
a further 5,300,000 new ordinary shares at 15p each were allotted pursuant to
the terms of the offer for subscription announced on 15 April 2004, raising a
further #795,000, before expenses.
After expenses, the proceeds from these two share issues amounted to #1,171,410.
Notes
(forming part of the financial statements)
1 Debtors
2004 2003
# #
Gross factored debts receivable 8,974,588 5,126,860
Due to clients on collection (3,882,097) (2,309,101)
---------- ---------
Client commitments 5,092,491 2,817,759
Other debtors 19,902 13,922
Prepayments and accrued income 84,898 51,752
---------- ---------
5,197,291 2,883,433
Debtors falling due after more than 1 year: 22,737 -
prepayments and accrued income
--------- ---------
5,220,028 2,883,433
========= =========
2 Creditors: amounts falling due within one year
2004 2003
# #
Bank loans and overdrafts 3,470,213 2,081,628
Trade creditors 47,340 31,612
Taxation and social security 42,523 34,037
Other creditors 48,269 39,687
Accruals and deferred income 33,870 15,417
--------- ---------
3,642,215 2,202,381
========= =========
The group has a loan facility with Lloyds TSB Commercial Finance Ltd for a #14
million back-to-back receivables financing agreement the minimum period for
which expires on 31 December 2005.
The facility is secured against an all assets debenture given by Ultimate
Finance Limited and a deed of guarantee and indemnity has been given by Ultimate
Finance Group plc.
At the end of the year, the group utilised #3,143,942 of the facility.
3 Called up share capital
2004 2003
# #
Authorised
Equity: 20,000,000 ordinary shares of 5p each 1,000,000 1,000,000
========= =========
Allotted, called up and fully paid
Equity: 19,997,018 ordinary shares of 5p each 999,851 561,169
========= =========
4 Share premium and reserves
Share Profit
premium and loss
account account
2004 2004
# #
At beginning of year 1,216,662 (663,083)
Retained loss for the period - (338,609)
Premium on share issues, less expenses 732,728 -
--------- ---------
At end of year 1,949,390 (1,001,692)
========= =========
5 Analysis of cash flows
2004 2003
# #
Returns on investment and servicing of
finance
Interest received 5,096 22,722
Interest paid (171,077) (30,845)
--------- --------
(165,981) (8,123)
========= ========
Capital expenditure and financial investment
Purchase of tangible fixed assets (26,677) (38,173)
--------- --------
(26,677) (38,173)
========= ========
Financing
Issue of ordinary share capital 1,316,047 2,002,000
Expenses paid in connection with share issue (144,637) (224,169)
Utilisation of credit facility 1,093,942 2,050,000
----------- ----------
2,265,352 3,827,831
=========== ==========
6 Earnings per share
The basic loss per share for the period to 30 June 2004 has been calculated from
the loss on ordinary activities after taxation of #338,609 and on the weighted
average number of ordinary shares in issue during the year (12,470,488).
The fully diluted loss per share for the period to 30 June 2004 is shown as the
same value as basic earnings per share, as a loss has been made in the year.
7 Preliminary statement
This preliminary statement was approved by the Board on 24 September 2004. It is
not the company's statutory accounts.
The statutory accounts for the period ended 30 June 2004 have been audited and
have been approved by the Board of directors on 24 September 2004. Copies of the
Directors' Report and Consolidated Financial Statements will be sent to all
shareholders shortly and will be available from the Group's Bristol office,
Bradley Pavilions Pear Tree Road, Bradley Stoke, Bristol BS32 0BQ.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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