|
TIDMAVS
RNS Number : 5193I
Avesco Group PLC
16 June 2011
AVESCO GROUP plc
INTERIM RESULTS FOR THE PERIOD ENDED 31 MARCH 2011
Avesco Group plc, the international provider of services to the corporate presentation, entertainment and broadcast markets, announces its results for the three months ended 31 March 2011.
KEY HIGHLIGHTS
Six months to 31 March 2011
-- Revenue up 13% to GBP62.0m (six months ended 31 March 2010: GBP54.8m)
-- EBITDA up 12% to GBP9.2m (six months ended 31 March 2010: GBP8.3m)*
-- Trading profit of GBP0.3m (six months ended 31 March 2010: loss of GBP1.1m)*
-- Operating profit of less than GBP0.1m (six months ended 31 March 2010: loss of GBP1.7m)
-- Loss after tax of GBP0.7m (six months ended 31 March 2010: loss of GBP1.6m)
Three months to 31 March 2011
-- Revenue up 2% to GBP31.5m (three months ended 31 March 2010: GBP31.0m)
-- EBITDA down 4% to GBP4.7m (three months ended 31 March 2010: GBP4.9m)*
-- Trading profit of GBP0.3m (three months ended 31 March 2010: GBP0.3m)*
* As described in note 3, the Group uses certain non-GAAP alternative measures to assess underlying operating performance.
Ian Martin, Chief Executive, commented:
I am pleased to report that the Avesco Group continued to make good progress during the six months ended 31 March 2011, with a significant growth in revenues and profitability compared to the first half of 2010. A more positive strategy for the Group is now in place as we have gone from fighting the headwinds to seizing the opportunity. The first six months of this financial year provides strong evidence of the underlying development of the Group.
As we look forward to the remainder of 2011, we are confident that, as we address new challenges and create fresh opportunities, we shall continue to make further progress. Moving closer on the horizon is 2012, a year that continues to hold exceptional promise for the Avesco Group.
For further information please contact:
Avesco Group plc
Ian Martin, Chief Executive 01293 583400
John Christmas, Group Finance
Director
FinnCap
Clive Carver, Corporate Finance
Tom Jenkins, Corporate Broking 020 7600 1658
Chairman's statement
I am pleased to report that the Avesco Group continued to make good progress during the six months ended 31 March 2011, with a significant growth in revenues and profitability compared to the first half of 2010.
A more positive strategy for the Group is now in place as we have gone from fighting the headwinds to seizing the opportunity. While there is still a lot hard work ahead, we are confident that we are positioning Avesco for ongoing improvement, growth and success.
The first six months of this financial year provides strong evidence of the underlying development of the Group. Although we are also reporting the Group's results on a quarterly basis, shareholders should gain a more balanced picture of the Group's performance by viewing our financial performance over the longer period.
Results
In our results for the three months ended 31 December 2010, we reported that the positive trends in the Group were continuing and that a real momentum appeared to be returning to the business.
This upturn in trading is reflected in the results for the six months ended 31 March 2011, when revenues rose 13% to GBP62.0m (six months ended 31 March 2010: GBP54.8m) and the Group recorded a trading profit (which excludes amortisation of acquired intangible assets, restructuring costs and non recurring and prior year costs) of GBP0.3m, showing a significant improvement compared to the prior year (six months ended 31 March 2010: loss of GBP1.1m).
The results for the second quarter ended 31 March 2011 also reflect those encouraging signs although the improvement is masked by the fact that the comparative quarter in 2010 benefited greatly from the inclusion of the Winter Olympics in Vancouver. Nevertheless, in the three months ended 31 March 2011, revenues were GBP31.5m, marginally ahead of the comparable period last year (three months ended 31 March 2010: GBP31.0m) and the trading profit (adjusted as above) was GBP0.3m, (three months ended 31 March 2010 GBP0.3m).
EBITDA for the three months ended 31 March 2011 was down 4% on the comparable period last year at GBP4.7m (three months ended 31 March 2010: GBP4.9m) but up 12% for the six months ended 31 March 2011 at GBP9.2m (six months ended March 2010: GBP8.3m).
After a net investment of GBP4.2m (three months ended 31 March 2010: GBP2.8m) in equipment and fixed assets plus working capital outflows of GBP2.4m (three months ended 31 March 2010: inflows of GBP0.6m), the net debt rose slightly over the quarter from GBP16.3m at 31 December 2010, to GBP18.7m at 31 March 2011, resulting in the Group's gearing (being net debt divided by total equity) increasing to 51% from 44%.
Banking Facility
In anticipation of a busy 2012, we have renegotiated and increased our banking facilities with HSBC, the Group's main bankers. Our loan facility with HSBC has been extended until 2015. Total facilities with HSBC are now GBP32m and the cost of borrowing has been reduced. These new facilities should provide the Group with the additional capital required to take advantage of the opportunities that lie before us.
US Litigation
The Group has an economic interest in the outcome of litigation brought in the USA by a company in the Complete Communications Corporation Limited ("Complete") group. In July 2010, the jury reached a unanimous verdict in favour of Complete. If the judgement sum is paid in full, the Group's share after costs would be approximately $60m (in the region of GBP1.40 per Avesco Group ordinary share based on the current issued share capital). The defendants have appealed the Court's decision and it is anticipated that the appeal process will take around two years. Although the extended timeline of this process is a little frustrating, we are comfortable that the legal argument on which this case will be determined remains favourable to us.
Strategy, Current Trading and Outlook
Our long-term strategy has been to create a balanced international business, building on areas where we can make a difference and provide a better service to our clients. The Group has significant unrealised potential which has been created by developing the trust of our customers through delivering a top class, professional service to them for more than 25 years - we are not complacent - but I believe that this is an asset of considerable value.
We continue to grow and see future opportunities. In recent years, our emphasis has predominantly been on organic growth and start ups, both of which take time to develop as opposed to the more instant results of acquisitions. However, by following a steadier route, we have been able to build the structures in the way that we want, writing off the cost against the profits of the day. We are now entering a period where these operations are starting to contribute to profits. Creative Technology, our largest business, now has a significant and growing operation in mainland Europe. In Asia, we are reaching profitability in a region of enormous growth potential. There are other examples of growth and advancement across the Group, where we have successfully built upon our existing businesses and skills.
The Board is determined and focused not only upon ensuring that this forward development continues but also that it becomes visible and recognised.
The cornerstone of the Avesco Group is the extraordinary skill and dedication of our staff, developed over many years. I am proud of them and grateful for their achievements.
As we look forward to the remainder of 2011, we are confident that, as we address new challenges and create fresh opportunities, we shall continue to make further progress.
Moving closer on the horizon is 2012, a year that continues to hold exceptional promise for the Avesco Group.
Richard Murray
Chairman
16 June 2011
Unaudited consolidated income statement
For the three months ended 31 March 2011
Year
Three months ended Six months ended ended 30
31 March 31 March September
2011 2010 2011 2010 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------- --------- ---------- ---------- ---------- ----------
Revenue 31,493 31,005 62,028 54,777 117,236
Cost of sales (20,735) (20,984) (41,090) (37,297) (78,163)
------------------- --------- ---------- ---------- ---------- ----------
Gross profit 10,758 10,021 20,938 17,480 39,073
Operating expenses (10,592) (10,274) (20,913) (19,216) (39,829)
------------------- --------- ---------- ---------- ---------- ----------
Operating
profit/(loss) 166 (253) 25 (1,736) (756)
Finance income 2 1 3 2 6
Finance costs (308) (381) (650) (743) (1,368)
------------------- --------- ---------- ---------- ---------- ----------
Loss before income
tax (140) (633) (622) (2,477) (2,118)
Income tax
(expense)/credit (46) 810 (49) 846 1,071
------------------- --------- ----------
(Loss)/profit for
the financial
period (186) 177 (671) (1,631) (1,047)
------------------- --------- ---------- ---------- ---------- ----------
Pence
per Pence per Pence per Pence per Pence per
share share share share share
(Losses)/earnings
per share for
(losses)/profit
attributable to
the equity holders
of the company
- basic (0.7)p 0.7p (2.7)p (6.5)p (4.2)p
- diluted (0.7)p 0.7p (2.7)p (6.5)p (4.2)p
Alternative performance measures (non-GAAP)
For the three months ended 31 March 2011
Year
Three months ended Six months ended ended 30
31 March 31 March September
2011 2010 2011 2010 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------- --------- ---------- ---------- ---------- ----------
Operating
profit/(loss) 166 (253) 25 (1,736) (756)
Adjusted to
exclude:
Amortisation of
acquired
intangible assets
(IFRS 3) - 91 - 182 244
Restructuring
costs 156 453 208 487 1,316
Other
non-recurring and
prior year
(credits)/costs (21) - 77 - 475
Trading
profit/(loss) 301 291 310 (1,067) 1,279
Net finance costs (306) (380) (647) (741) (1,362)
Income tax
(expense)/credit (46) 810 (49) 846 1,071
Trading
(loss)/profit
after net finance
costs and income
tax
(expense)/credit (51) 721 (386) (962) 988
------------------- --------- ---------- ---------- ---------- ----------
Adjusted Pence
(losses)/earnings per Pence per Pence per Pence per Pence per
per share share share share share share
------------------- --------- ---------- ---------- ---------- ----------
- basic (0.2)p 2.9p (1.5)p (3.8)p 3.9p
- diluted (0.2)p 2.9p (1.5)p (3.8)p 3.9p
Refer to note 3 for a full description of the alternative performance measures adopted by the Group.
Unaudited consolidated statement of comprehensive income
For the three months ended 31 March 2011
Three months ended Six months ended Year ended
31 March 31 March 30 September
2011 2010 2011 2010 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------ ---------- --------- --------- -------- --------------
(Loss)/profit for
the period (186) 177 (671) (1,631) (1,047)
Other
comprehensive
income
Currency
translation
differences 72 (258) (90) (367) (404)
Total
comprehensive
expense for the
period (114) (81) (761) (1,998) (1,451)
------------------ ---------- --------- --------- -------- --------------
Unaudited consolidated balance sheet
As at 31 March 2011
31 March 31 March 30 September
2011 2010 2010
GBP000s GBP000s GBP000s
------------------------------------- --------- --------- -------------
Assets
Non-current assets
Property, plant and equipment 53,115 53,733 51,971
Intangible assets 221 506 328
Deferred income tax assets 4,468 4,391 4,470
Trade and other receivables 242 308 277
------------------------------------- --------- --------- -------------
58,046 58,938 57,046
Current assets
Inventories 1,587 1,238 1,385
Trade and other receivables 23,247 23,092 19,355
Current income tax assets 82 67 113
Cash and cash equivalents 6,017 6,218 6,896
30,933 30,615 27,749
------------------------------------- --------- --------- -------------
Total assets 88,979 89,553 84,795
------------------------------------- --------- --------- -------------
Liabilities
Non-current liabilities
Borrowings and loans 18,422 17,846 15,342
Deferred income tax liabilities 1,401 1,578 1,398
Provisions for other liabilities
and charges 317 514 815
------------------------------------- --------- --------- -------------
20,140 19,938 17,555
Current liabilities
Trade and other payables 25,259 26,345 23,980
Current income tax liabilities 484 433 520
Borrowings and loans 6,267 5,901 5,279
Provisions for other liabilities
and charges 498 361 211
-------------------------------------
32,508 33,040 29,990
------------------------------------- --------- --------- -------------
Total liabilities 52,648 52,978 47,545
------------------------------------- --------- --------- -------------
Total assets less total liabilities 36,331 36,575 37,250
------------------------------------- --------- --------- -------------
Equity
Capital and reserves attributable
to equity holders of the company
Ordinary shares 2,599 2,599 2,599
Share premium 23,286 23,286 23,286
Other reserves 124 251 214
Retained earnings 10,322 10,439 11,151
------------------------------------- --------- --------- -------------
Total equity 36,331 36,575 37,250
------------------------------------- --------- --------- -------------
Unaudited consolidated statement of changes in equity
For the three months ended 31 March 2011
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
---------------------- --------- --------- ---------- ---------- --------
Balance at 1 January
2011 2,599 23,286 52 10,730 36,667
Total comprehensive
income/(expense) for
the period - - 72 (186) (114)
---------------------- --------- --------- ---------- ---------- --------
2,599 23,286 124 10,544 36,553
Transactions with
owners in their
capacity as owners:
External dividends
paid - - - (254) (254)
LTIP and share
options - - - 32 32
---------------------- --------- --------- ---------- ---------- --------
Balance at 31 March
2011 2,599 23,286 124 10,322 36,331
---------------------- --------- --------- ---------- ---------- --------
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
---------------------- --------- --------- ---------- ---------- --------
Balance at 1 October
2010 2,599 23,286 214 11,151 37,250
Total comprehensive
expense for the
period - - (90) (671) (761)
---------------------- --------- --------- ---------- ---------- --------
2,599 23,286 124 10,480 36,489
Transactions with
owners in their
capacity as owners:
External dividends
paid - - - (254) (254)
LTIP and share
options - - - 96 96
---------------------- --------- --------- ---------- ---------- --------
Balance at 31 March
2011 2,599 23,286 124 10,322 36,331
---------------------- --------- --------- ---------- ---------- --------
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
---------------------- --------- --------- ---------- ---------- --------
Balance at 1 January
2010 2,599 23,286 509 10,220 36,614
Total comprehensive
(expense)/income for
the period - - (258) 177 (81)
---------------------- --------- --------- ---------- ---------- --------
2,599 23,286 251 10,397 36,533
Transactions with
owners in their
capacity as owners:
LTIP and share
options - - - 42 42
---------------------- --------- --------- ---------- ---------- --------
Balance at 31 March
2010 2,599 23,286 251 10,439 36,575
---------------------- --------- --------- ---------- ---------- --------
Unaudited consolidated statement of changes in equity (continued)
For the three months ended 31 March 2011
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
---------------------- --------- --------- ---------- ---------- --------
Balance at 1 October
2009 2,599 23,286 618 12,028 38,531
Total comprehensive
expense for the
period - - (367) (1,631) (1,998)
---------------------- --------- --------- ---------- ---------- --------
2,599 23,286 251 10,397 36,533
Transactions with
owners in their
capacity as owners:
LTIP and share
options - - - 42 42
---------------------- --------- --------- ---------- ---------- --------
Balance at 31 March
2010 2,599 23,286 251 10,439 36,575
---------------------- --------- --------- ---------- ---------- --------
Share Share
capital premium Other Retained
account account reserves earnings Total
GBP000s GBP000s GBP000s GBP000s GBP000s
---------------------- --------- --------- ---------- ---------- --------
Balance at 1 October
2009 2,599 23,286 618 12,028 38,531
Total comprehensive
expense for the
period - - (404) (1,047) (1,451)
---------------------- --------- --------- ---------- ---------- --------
2,599 23,286 214 10,981 37,080
Transactions with
owners in their
capacity as owners:
LTIP and share
options - - - 170 170
Balance at 30
September 2010 2,599 23,286 214 11,151 37,250
---------------------- --------- --------- ---------- ---------- --------
Unaudited consolidated cash flow statement
For the three months ended 31 March 2011
Three months ended Six months ended Year ended
31 March 31 March 30 September
2011 2010 2011 2010 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------ ---------- --------- --------- -------- --------------
Cash flows from
operating
activities
Cash generated
from operations 2,165 5,381 5,040 8,671 20,050
Net interest paid (258) (325) (626) (650) (1,311)
Income tax
received/(paid) 17 158 (43) 178 131
Net cash
generated from
operating
activities 1,924 5,214 4,371 8,199 18,870
------------------ ---------- --------- --------- -------- --------------
Cash flows from
investing
activities
Purchases of
property, plant
and equipment (4,472) (3,213) (9,348) (4,489) (13,843)
Proceeds from
sale of
property, plant
and equipment 259 390 274 513 2,142
Net cash used in
investing
activities (4,213) (2,823) (9,074) (3,976) (11,701)
------------------ ---------- --------- --------- -------- --------------
Cash flows from
financing
activities
Proceeds from
borrowings 4,210 2,324 8,482 2,578 3,838
Repayments of
borrowings (1,845) (1,815) (4,642) (4,490) (8,100)
Net cash
generated /
(used) in
financing
activities 2,365 509 3,840 (1,912) (4,262)
------------------ ---------- --------- --------- -------- --------------
Cash
(used)/generated
from
discontinued
operations (327) 23 (146) 23 257
------------------ ---------- --------- --------- -------- --------------
Net (decrease) /
increase in
cash, cash
equivalents and
bank overdrafts (251) 2,923 (1,009) 2,334 3,164
Cash, cash
equivalents and
bank overdrafts
at beginning of
period 5,891 3,335 6,896 3,882 3,882
Exchange
gains/(losses)
on cash and bank
overdrafts 126 (507) (121) (465) (150)
Cash, cash
equivalents and
bank overdrafts
at end of
period 5,766 5,751 5,766 5,751 6,896
Bank overdrafts
at end of
period 251 467 251 467 -
Cash, cash
equivalents at
end of period 6,017 6,218 6,017 6,218 6,896
------------------ ---------- --------- --------- -------- --------------
Notes to the interim report and accounts
1. General information
Avesco Group plc ('the Company') and its subsidiaries (together 'the Group') is an international media services business. The Group has subsidiaries around the world and sells in the UK, USA, Europe, Asia Pacific and the Middle East.
The Company is a public limited company which is listed on the Alternative Investment Market and is incorporated and domiciled in the UK. The address of its registered office is Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH.
The registered number of the Company is 01788363.
2. Status of interim report and accounts
The interim report and accounts are unaudited but have been reviewed by the auditors and their independent review report is appended to this document. The interim report and accounts, which were approved by the Board of Directors on 16 June 2011, are not full accounts within the meaning of section 434 of the Companies Act 2006.
The figures for the year ended 30 September 2010 have been extracted from the audited annual report and accounts that have been delivered to the Registrar of Companies. PricewaterhouseCoopers LLP, Avesco Group plc's auditors, reported on those accounts under section 495 of the Companies Act 2006. Their report was unqualified and did not contain a statement under section 498 of that Act.
3. Basis of preparation
The interim report and accounts have been prepared using the accounting policies to be applied in the annual report and accounts for the year ending 30 September 2011. These are consistent with those included in the previously published annual report and accounts for the year ended 30 September 2010, which have been prepared in accordance with IFRS as adopted by the European Union.
Alternative performance measures
The Group uses alternative non-Generally Accepted Accounting Practice ("non-GAAP") financial measures which are not defined within IFRS. The Directors use these measures in order to assess the underlying operational performance of the Group and as such, these measures are important and should be considered alongside the IFRS measures. The following non-GAAP measures are referred to in these interim report and accounts.
a) Trading profit/loss
'Trading profit/loss' is separately disclosed, being defined as operating profit adjusted to exclude amortisation of acquired intangible assets, restructuring costs and other non-recurring and prior year costs. The Directors believe that adjusted operating profit/loss is an important measure of the underlying performance of the Group.
b) Adjusted earnings per share
'Adjusted earnings per share' is calculated by dividing the profit for the period excluding the amortisation of acquired intangible assets, restructuring costs and other non-recurring and prior year costs by the weighted average number of ordinary shares in issue during the period. The Directors believe that adjusted earnings per share provides an important measure of the underlying performance of the Group.
c) EBITDA
Adjusted earnings before interest, taxation, depreciation and amortisation ('EBITDA') is separately disclosed, being defined as trading profit/loss adjusted to exclude depreciation and amortisation of software. The Directors believe that EBITDA is an important measure of the underlying performance of the Group.
4. Segmental information
Three months ended Six months ended Year ended
31 March 31 March 30 September
2011 2010 2011 2010 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------ ---------- --------- --------- -------- --------------
Revenue
Creative
Technology 21,553 19,311 40,194 32,596 69,876
Full Service 5,131 4,833 10,822 10,593 22,164
Broadcast 5,917 8,833 12,740 14,115 26,779
Inter Segment
revenue (1,108) (1,972) (1,728) (2,527) (1,583)
------------------ -------- --------------
Group revenue 31,493 31,005 62,028 54,777 117,236
------------------ ---------- --------- --------- -------- --------------
Operating profit
Creative
Technology 1,276 944 1,162 (79) 822
Full Service (322) (526) (362) (822) (667)
Broadcast (561) 140 (306) 29 2,116
Head Office (92) (267) (184) (195) (992)
------------------ -------- --------------
Trading
profit/(loss) 301 291 310 (1,067) 1,279
Amortisation of
acquired
intangible
assets (IFRS 3) - (91) - (182) (244)
Restructuring
costs (156) (453) (208) (487) (1,316)
Other
non-recurring
and prior year
costs 21 - (77) - (475)
Operating
profit/(loss) 166 (253) 25 (1,736) (756)
------------------ ---------- --------- --------- -------- --------------
5. Earnings before interest, taxation, depreciation and amortisation ('EBITDA')
Three months ended Six months ended Year ended
31 March 31 March 30 September
2011 2010 2011 2010 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------ ---------- --------- --------- -------- --------------
Trading
profit/(loss) 301 291 310 (1,067) 1,279
Depreciation 4,370 4,564 8,796 9,167 18,070
Amortisation of
software 71 76 143 151 303
EBITDA on trading
operations 4,742 4,931 9,249 8,251 19,652
------------------ ---------- --------- --------- -------- --------------
EBITDA is defined in note 3.
6. Earnings per share
Year ended
Three months ended Six months ended 30
31 March 31 March September
2011 2010 2011 2010 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------- ---------- --------- --------- -------- -------------
(Loss)/profit for
the period (186) 177 (671) (1,631) (1,047)
Amortisation of
acquired
intangible assets
(IFRS 3) - 91 - 182 244
Restructuring
costs 156 453 208 487 1,316
Other
non-recurring and
prior year
(credits)/costs (21) - 77 - 475
Trading
(loss)/profit
after net finance
costs and income
tax
(expense)/credit (51) 721 (386) (962) 988
------------------- ---------- --------- --------- -------- -------------
Weighted average
number of shares
(net of treasury
shares)
For basic earnings
per share
(000's) 25,293 25,023 25,156 25,023 25,023
Effect of dilutive
share options
(000's) - - - - -
For diluted
earnings per
share (000's) 25,293 25,023 25,156 25,023 25,023
------------------- ---------- --------- --------- -------- -------------
(Losses)/earnings
per share
Basic (0.7)p 0.7p (2.7)p (6.5)p (4.2)p
Diluted (0.7)p 0.7p (2.7)p (6.5)p (4.2)p
------------------- ---------- --------- --------- -------- -------------
Adjusted basic (0.2)p 2.9p (1.5)p (3.8)p 3.9p
Adjusted diluted (0.2)p 2.9p (1.5)p (3.8)p 3.9p
------------------- ---------- --------- --------- -------- -------------
Basic earnings per share have been calculated by dividing profit/loss for the period by the weighted average number of ordinary shares in issue during the period.
Diluted earnings per share have been calculated by dividing profit/loss for the period by the weighted average number of ordinary shares in issue during the period, adjusted for any awards under the Company's Long Term Incentive Plan ("LTIP") where pre-specified performance conditions have been satisfied and any required conversion of dilutive potential options. There is no dilution in the current or prior period as the performance conditions have not yet been satisfied for the outstanding LTIP awards. Losses are not subject to dilution.
Adjusted earnings per share have been calculated by dividing adjusted profit/loss for the period by the weighted average number of ordinary shares in issue during the period.
7. Analysis of net debt
At 1 Other Currency At 31
January Cash non cash translation March
2011 flow changes differences 2011
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------- --------- -------- ---------- ------------- ---------
Cash at bank and
in hand 5,891 (15) - 141 6,017
Bank overdrafts - (236) - (15) (251)
------------------- --------- -------- ---------- ------------- ---------
Net cash 5,891 (251) - 126 5,766
Bank loans due
in more than one
year (11,418) (2,511) - 21 (13,908)
Hire purchase
obligations due
in less than one
year (6,175) 1,175 (1,074) 58 (6,016)
Hire purchase
obligations due
in more than one
year (4,602) (1,029) 1,074 43 (4,514)
Net debt (16,304) (2,616) - 248 (18,672)
------------------- --------- -------- ---------- ------------- ---------
At 1 Other Currency At 31
October Cash non cash translation March
2010 flow changes differences 2011
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------- --------- -------- ---------- ------------- ---------
Cash at bank and
in hand 6,896 (773) - (106) 6,017
Bank overdrafts - (236) - (15) (251)
------------------- --------- -------- ---------- ------------- ---------
Net cash 6,896 (1,009) - (121) 5,766
Bank loans due
in more than one
year (12,363) (1,525) - (20) (13,908)
Hire purchase
obligations due
in less than one
year (5,279) 1,318 (2,080) 25 (6,016)
Hire purchase
obligations due
in more than one
year (2,979) (3,633) 2,080 18 (4,514)
Net debt (13,725) (4,849) - (98) (18,672)
------------------- --------- -------- ---------- ------------- ---------
At 1 Other Currency At 31
January Cash non cash translation March
2010 flow changes differences 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
------------------- --------- -------- ---------- ------------- ---------
Cash at bank and
in hand 3,765 2,965 - (512) 6,218
Bank overdrafts (430) (42) - 5 (467)
------------------- --------- -------- ---------- ------------- ---------
Net cash 3,335 2,923 - (507) 5,751
Bank loans due
in more than one
year (12,677) (1,707) - (172) (14,556)
Finance lease
obligations due
in less than one
year (5,867) 1,503 (996) (74) (5,434)
Finance lease
obligations due
in more than one
year (3,935) (305) 996 (46) (3,290)
Net debt (19,144) 2,414 - (799) (17,529)
------------------- --------- -------- ---------- ------------- ---------
At 1 Other Currency At 31
October Cash non cash translation March
2009 flow changes differences 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- --------- -------- ---------- ------------- -----------
Cash at bank and
in hand 4,531 2,168 - (481) 6,218
Bank overdrafts (649) 166 - 16 (467)
----------------- --------- -------- ---------- ------------- -----------
Net cash 3,882 2,334 - (465) 5,751
Bank loans due
in more than
one year (13,700) (719) - (137) (14,556)
Finance lease
obligations due
in less than
one year (5,988) 3,097 (2,477) (66) (5,434)
Finance lease
obligations due
in more than
one year (5,256) (466) 2,477 (45) (3,290)
Net debt (21,062) 4,246 - (713) (17,529)
----------------- --------- -------- ---------- ------------- -----------
At 1 Other Currency At 30
October Cash non cash translation September
2009 flow changes differences 2010
GBP000s GBP000s GBP000s GBP000s GBP000s
----------------- --------- -------- ---------- ------------- -----------
Cash at bank and
in hand 4,531 2,554 - (189) 6,896
Bank overdrafts (649) 610 - 39 -
----------------- --------- -------- ---------- ------------- -----------
Net cash 3,882 3,164 - (150) 6,896
Bank loans due
in more than
one year (13,700) 1,256 - 81 (12,363)
Hire purchase
obligations due
in less than
one year (5,988) 5,565 (4,842) (14) (5,279)
Hire purchase
obligations due
in more than
one year (5,256) (2,559) 4,842 (6) (2,979)
-----------
Net debt (21,062) 7,426 - (89) (13,725)
----------------- --------- -------- ---------- ------------- -----------
8. Interim and final dividends
During the year ended 30 September 2010, the Group paid no dividends.
A final dividend for the year ended 30 September 2010 of 1.0p per share was approved by shareholders and was paid on 6 April 2011 to shareholders on the register at 6.00pm on 11 March 2011.
9. Contingencies
InvestinMedia Holdings Limited ("InvestinMedia"), a subsidiary of the Company, sold its investment in Complete Communications Corporation Limited ("Complete") on 20 December 2006. In connection with the sale, InvestinMedia and other vendors gave certain warranties and indemnities to the buyer, liability in respect of which runs for periods of up to seven years from the date of completion. Companies in the Complete group are also subject to legal claims which may give rise to liability on the part of InvestinMedia and other vendors under the indemnities. On 8 July 2010 the Company announced that the jury in a US legal action had reached a unanimous verdict favourable to InvestinMedia and the other vendors of Complete. On 21 December 2010, the defendants' alternative motions for a new trial and for judgement as a matter of law were denied. On 14 January 2011 the defendants filed their notice of appeal. If the award is paid in full, the Group's interest (after costs but including pre-judgement interest) is estimated at approximately $60m. No credit has been taken in these accounts to reflect this verdict, pending completion of the appeal process.
10. Distribution of interim report and accounts
Copies of this interim report and accounts are being sent to all shareholders and additional copies are available either from the Company's web site (www.avesco.com) or from the Company's registered office: Avesco Group plc, Unit E2, Sussex Manor Business Park, Gatwick Road, Crawley, West Sussex, RH10 9NH. Telephone: +44 (0) 1293 583 400. Fax: +44 (0) 1293 583 410. E-mail: mail@avesco.com.
INDEPENDENT REVIEW REPORT TO AVESCO GROUP PLC
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the interim report and accounts for the three month and six month period ending 31 March 2011, which comprises the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of changes in equity, consolidated cash flow statement and related notes. We have read the other information contained in the interim report and accounts and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
Directors' Responsibilities
The interim report and accounts are the responsibility of, and have been approved by, the Directors. The Directors are responsible for preparing the interim report and accounts in accordance with the AIM Rules for Companies which require that the financial information must be presented and prepared in a form consistent with that which will be adopted in the Company's annual financial statements.
This interim report and accounts has been prepared in accordance with the basis set out in note 3.
The maintenance and integrity of the Avesco Group plc website is the responsibility of the Directors; the work carried out by the auditors does not involve a consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim report and accounts based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of the AIM Rules for Companies and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim report and accounts for the three month and six month period ending 31 March 2011 are not prepared, in all material aspects, in accordance with the basis set out in note 3 and the AIM Rules for Companies.
PricewaterhouseCoopers LLP
Chartered Accountants
16 June 2011
Gatwick
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BUGDLDUBBGBU
|
