Final Results

 

TIDMADIL 
 
RNS Number : 9541Y 
Adili PLC 
14 September 2009 
 
AIM: ADIL 
14 September 2009 
 
 
Adili plc 
("Adili" or "the Company") 
 
 
Final Results 
for the Year ended 30 April 2009 
 
 
Adili plc, the online retailer of ethical fashion and lifestyle products trading 
through Ascensiononline.com, announces its final results for the year ended 30 
April 2009.  The Company sources its own goods sold under the Ascension Brand 
and also from a variety of ethical brands. Its products are intended to be 
fashionable and stylish, ethical and offer exceptional value for money. 
 
 
Key Points 
 
 
  *  Sales increased 56% to GBP552,000 (2008: GBP354,000) 
 
 
 
  *  Loss before tax of GBP1,903,000 (2008: loss of GBP1,585,000) after share option 
  charge of GBP110,000 (2008: GBP147,000) 
 
 
 
  *  Loss per share of GBP0.05 (2008: loss per share of GBP0.12) 
 
 
 
  *  Substantial investment in the business, new website and development of own 
  labels ranges 
 
 
 
  *  Appointment of Nick Samuel as Chairman in year 
 
 
 
  *  GBP1.4 million raised from investors during the year 
 
 
 
  *  Investment in Board capability 
 
 
 
  *  Since the year end, rebranded to Ascension and completed a GBP940,000 share 
  placing 
 
 
 
 
 
 
 
Adam Smith, Chief Executive, commented: 
 
 
"These results are broadly in line with expectations and reflect significant 
activity to 'clear the decks' in readiness for further improvement in the coming 
year.  The recent funding constraints have temporarily restricted recent growth 
since the year end, but with the successful Placing in August combined with 
significant overhead reduction, a clean stock base, and the rebranding to 
Ascension, position us well for the next 12 months. 
 
 
Customer and press reaction to our own labels, an improved edited 'bought in' 
collection, and very positive customer reaction to the rebranding, combined with 
new marketing developments, give us much encouragement for our prospects through 
accelerated sales growth." 
 
 
 
 
 
 
Enquiries: 
 
+-----------------------+------------------------------+------------------+ 
| Adili plc             | Adam Smith, Chief Executive  | T: 01258 837 437 | 
|                       | Officer                      |                  | 
|                       | Mark Swire, Finance Director |                  | 
+-----------------------+------------------------------+------------------+ 
|                       |                              |                  | 
+-----------------------+------------------------------+------------------+ 
| Seymour Pierce        | Nicola Marrin/Catherine      | T: 020 7107 8000 | 
| Limited               | Leftley                      |                  | 
+-----------------------+------------------------------+------------------+ 
|                       |                              |                  | 
+-----------------------+------------------------------+------------------+ 
 
 
CHAIRMAN'S STATEMENT 
 
 
Introduction 
I have great pleasure in presenting Adili's second full year results as an AIM 
quoted company. The business continues to make great progress, with the launch 
of the new web site in November 2008 and the introduction of the Spring Summer 
2009 Adili own label capsule collection, both to positive acclaim, Adili has 
further laid the foundations for continued and accelerated future growth. 
Over the year to 30 April 2009 Adili showed increased revenue growth despite 
some of the most difficult trading conditions experienced in recent memory. 
Funds raised from investors have been invested in key areas which will drive 
future accelerated growth. The business continues to be the destination 
department store to shop online for ethical fashion and other related lifestyle 
products. With a strong platform for growth now in place we are building 
increasing consumer awareness of our brand as a leading name in our market. 
Since the year end we have rebranded the business as Ascension reflecting our 
mainstream fashion ambitions. We have also completed a further fundraising of 
GBP940,000 to provide working capital to cash breakeven. 
 
 
Financial Results 
 
 
Revenue for the year to 30 April 2009 increased to GBP552,000 (2008: 
GBP354,000). The operating loss was GBP1,894,000 (2008: loss of GBP1,591,000). 
This was higher than originally expected and reflected both a reduction in gross 
margin because of stock clearance and an acceleration of investment in the 
business. The loss before tax was GBP1,903,000 (2008: loss of GBP1,585,000) and 
loss per share was GBP0.05 (2008: loss per share GBP0.12), including a share 
option charge of GBP110,000 (2007: GBP147,000). The Group ended the year with 
net funds of GBP193,000. 
 
 
Fundraising 
 
 
During the year, the Company raised additional funding through a placing and a 
loan, both of which are described below. These have resulted, before costs, in a 
GBP1.4 million increase in the Company's cash resources. Since the year end a 
further GBP0.9 million has been secured. 
Placings 
In October, Adili completed a placing to raise approximately GBP360,000 before 
expenses through the issue of 6,596,350 new ordinary shares at a price of 5.5p 
per share. The net proceeds were used to fund the Company's growth and for 
working capital purposes. The new shares issued were admitted to trading on AIM 
on 7 October 2008. 
In April, Adili completed a further placing raising approximately GBP349,000 
before expenses through the issue of 11,633,500 new ordinary shares at a price 
of 3p per share. The net proceeds were used to fund the immediate working 
capital requirements of the company. The new shares issued were admitted to AIM 
on 16 April 2009. 
In August, Adili completed a placing to raise approximately GBP940,000 before 
expenses through the issue of 62,666,666 shares at a price of 1.5p per share. 
The proceeds will fund working capital and continuing growth, which the 
directors believe will take the company to cash breakeven. 
 
 
 
 
Convertible Loan Facility 
On 2 October, The Company entered into a secured convertible loan facility for 
approximately GBP640,000 with its largest shareholder, Hawk Investment Holdings 
Limited ("Hawk"). Hawk, following the placing on 2 October, was interested in 
29.95% of the Company's issued share capital. The loan converted into equity, 
when the Panel on Takeovers and Mergers granted a waiver of any obligation on 
Hawk to make an offer for the Company and independent shareholders gave their 
approval at the AGM on 28 November. Following the conversion, Hawk was 
interested in approximately 48.5% of the Company's issued share capital. 
Business Development 
Own label 
This year has seen the benefits of our substantial investment in own label start 
to flow into the business with the launch of our first own label products. 
Earlier in the year we delivered a capsule menswear collection, a bathrobe and 
towelling offering and a nightwear and lingerie offering. This was followed in 
March this year with the launching of the womenswear capsule collection. Sell 
through rates have been very encouraging. 
The Autumn Winter 2009 womenswear collection has just launched on site with a 
significant number of additional lines launching over the next three weeks. The 
initial press reaction to the collection has been very encouraging. 
The launch of our own label product is a key development for the business since 
it helps us to advance our ethical goals, further expand the product range, 
improve margins, increase brand awareness, and allow greater control over the 
supply chain. 
Product range 
Over the course of the year, we continued to invest in stock, expanding the 
range of ethical brands we provide to 98 across 1,731 lines (2008: 53 across 756 
lines). This was above targets of 80 brands across 1,500 lines and includes our 
core clothing categories for women, men and children, our jewellery and skincare 
collections as well as our homeware and gift offerings. As the management team 
focuses on improving the mix of goods sold to the strongest performing areas of 
the business, we do not expect any significant increase in brands or number of 
lines offered in the coming year. 
Operations and logistics 
During the year, we completed the successful introduction of our new website. 
This also included moving to a much more robust hosting environment which will 
ensure the smooth handling of an increasing level of transactions. The new 
website is achieving improved conversion levels and visitor duration levels 
which in turn should further improve as we add more content to our site. 
Board structure 
During the year we have invested in management capability. Caroline Gitsham has 
joined the board as Product Director with responsibility for own label 
development and branded buying and Mark Swire has been promoted to Finance 
Director. I believe both appointments will be of considerable benefit 
to developing and growing the business. 
Chris Powles and Sim Scavazza who were part-time Finance Director and part-time 
Creative Director respectively both stepped down from their executive roles to 
become Non-Executive Directors in February 2009 prior to their departure this 
April. In addition Quentin Griffiths resigned as a director February 2009. I 
would like to thank Chris, Sim and Quentin for their contribution to Adili's 
development and wish them well in their other interests. 
Since the year end, Alan Howarth has resigned from his position of non-executive 
director. I again would like to offer my thanks for all his significant 
contribution to the growth of Adili through its early stages of development. 
Market developments 
 
 
The markets for internet retailing and ethical fashion both continue to expand 
significantly. This provides a strong base and market environment for Adili. 
The available statistics indicate further considerable growth in online 
retailing. According to the monthly IMRG Cap Gemini e-Retail Sales Index, online 
spending in July showed a rise of 16.8% year-on-year. A wide range of 
commentators are predicting a material increase in online sales in the key 
trading period to Christmas this year. The strong growth in ethical consumption 
that has been evident in recent years continued into the first half of this year 
with, for example, the Fairtrade Foundation announcing in April that sales of 
Fairtrade products in 2008 grew by 43% compared to last year. 
Future growth is likely to be impacted to a degree by the 'Credit Crunch' and 
related consumer issues. However the ethical fashion sub-sector is at an early 
stage of development and we are seeing signs of a continuing increase in 
consumer and industry interest in ethical fashion. We believe this will continue 
to provide a positive market environment for Adili. 
 
 
Ethical trade initiatives 
 
 
Winning the Ethical Fashion Retailer of the Year award at the Re:Fashion Awards 
and receiving one of the top ratings for clothing retailers by Ethical Consumer 
magazine were two very pleasing accolades for our social and environmental work 
last year. 
 
 
Outlook 
 
 
Revenues for the first 5 months of the current financial year have grown by over 
29% compared to the same period last year. This is anticipated to accelerate in 
the key trading period before Christmas and will be driven by greater 
availability of stock, increased conversion from the new website, increased 
brand awareness a relevant and credible product range as well as the resolution 
of recent funding constraints. 
Finally, I would like to thank all our staff for their hard work and loyalty - 
as I do to our brands, sub-contractors and other suppliers. They have shown 
great commitment to help us achieve all that we have in the year. 
 
 
 
 
Nick Samuel 
Chairman 
  CONSOLIDATED INCOME STATEMENT 
for the year ended 30 APRIL 2009 
 
 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
|                                    | Notes  |        2009 |        2008 | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |         GBP |         GBP | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Continuing operations              |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Revenue                            |        |     552,489 |     354,191 | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Cost of sales                      |        |   (537,524) |   (317,885) | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Gross profit                       |        |      14,965 |      36,306 | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Administrative expenses            |        | (1,908,971) | (1,627,410) | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Operating loss                     |        | (1,894,006) | (1,591,104) | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Finance costs                      |        |    (21,926) |    (16,500) | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Investment revenues                |        |      13,339 |      22,179 | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Loss before taxation               |        | (1,902,593) | (1,585,425) | 
+------------------------------------+--------+-------------+-------------+ 
| Taxation                           |   2    |           - |           - | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Loss for the year                  |        | (1,902,593) | (1,585,425) | 
+------------------------------------+--------+-------------+-------------+ 
|                                    |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Loss per share (GBP)               |        |             |             | 
+------------------------------------+--------+-------------+-------------+ 
| Basic and diluted                  |   3    |      (0.05) |      (0.12) | 
+------------------------------------+--------+-------------+-------------+ 
  CONSOLIDATED BALANCE SHEET 
as at 30 April 2009 
 
 
+------------------------------------+------------+-------------+-------------+ 
|                                    |      Notes |        2009 |        2008 | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |         GBP |         GBP | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Non-current assets                 |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Plant and equipment                |            |      95,760 |     102,335 | 
+------------------------------------+------------+-------------+-------------+ 
| Intangible assets - other          |            |      59,371 |      15,727 | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Total non-current assets           |            |     155,131 |     118,062 | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Current assets                     |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Inventories                        |            |     233,308 |     193,562 | 
+------------------------------------+------------+-------------+-------------+ 
| Trade and other receivables        |            |      98,590 |     143,064 | 
+------------------------------------+------------+-------------+-------------+ 
| Cash and cash equivalents          |     5      |     192,742 |     706,705 | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Total current assets               |            |     524,640 |   1,043,331 | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Current liabilities                |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Trade and other payables           |            |   (187,550) |   (137,579) | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Total current liabilities          |            |   (187,550) |   (137,579) | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Net current assets                 |            |     337,090 |     905,752 | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Net assets                         |            |     492,221 |   1,023,814 | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Equity                             |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
| Share capital                      |            |     555,152 |     254,866 | 
+------------------------------------+------------+-------------+-------------+ 
| Share premium account              |            |   2,572,168 |   1,677,762 | 
+------------------------------------+------------+-------------+-------------+ 
| Merger reserve                     |            |     574,600 |     574,600 | 
+------------------------------------+------------+-------------+-------------+ 
| Share option reserve               |            |     256,649 |     146,610 | 
+------------------------------------+------------+-------------+-------------+ 
| Retained earnings                  |            | (3,466,348) | (1,630,024) | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |             |             | 
+------------------------------------+------------+-------------+-------------+ 
|                                    |            |     492,221 |   1,023,814 | 
+------------------------------------+------------+-------------+-------------+ 
 
 
 
 
  CONSOLIDATED CASH FLOW STATEMENT 
for the year ended 30 April 2009 
 
 
+-----------------------------------------+-------+-------------+-------------+ 
|                                         |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
|                                         | Notes |        2009 |        2008 | 
+-----------------------------------------+-------+-------------+-------------+ 
|                                         |       |         GBP |         GBP | 
+-----------------------------------------+-------+-------------+-------------+ 
|                                         |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Net cash used in operating activities   |  5    | (1,662,830) | (1,528,597) | 
+-----------------------------------------+-------+-------------+-------------+ 
|                                         |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Investing activities                    |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Interest received                       |       |      13,339 |      22,179 | 
+-----------------------------------------+-------+-------------+-------------+ 
| Purchases of property, plant and        |       |    (51,301) |   (102,109) | 
| equipment                               |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Purchases intellectual property rights  |       |    (52,206) |    (15,727) | 
+-----------------------------------------+-------+-------------+-------------+ 
| Net cash used in investing activities   |       |    (90,168) |    (95,657) | 
+-----------------------------------------+-------+-------------+-------------+ 
|                                         |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Financing activities                    |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Proceeds on issue of shares             |       |     711,804 |   1,500,030 | 
+-----------------------------------------+-------+-------------+-------------+ 
| Loan stock proceeds                     |       |     648,932 |   1,100,000 | 
+-----------------------------------------+-------+-------------+-------------+ 
| Costs relating to share issue and loan  |       |   (109,970) |   (402,860) | 
| stock                                   |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Interest paid                           |       |    (11,731) |    (16,500) | 
+-----------------------------------------+-------+-------------+-------------+ 
|                                         |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Net cash generated from financing       |       |   1,239,035 |   2,180,670 | 
| activities                              |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
|                                         |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Net (decrease)/increase in cash and     |       |   (513,963) |     556,416 | 
| cash equivalents                        |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
|                                         |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Cash and cash equivalents at beginning  |       |     706,705 |     150,289 | 
| of year                                 |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
| Cash and cash equivalents at end of     |  4    |     192,742 |     706,705 | 
| year                                    |       |             |             | 
+-----------------------------------------+-------+-------------+-------------+ 
 
 
  CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
for the year ended 30 April 2009 
 
 
+----------------------+---------------+-----------+----------+---------+-------------+--+--------+--+----------+--+ 
|                      | Share capital |     Share |    Share |  Merger |      Equity |     Retained |       Total | 
|                      |               |   premium |   option | reserve |     element |     earnings |      equity | 
|                      |               |           |  reserve |         |          of |              |             | 
|                      |               |           |          |         | convertible |              |             | 
|                      |               |           |          |         |  loan stock |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
|                      |           GBP |       GBP |      GBP |     GBP |         GBP |          GBP |         GBP | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Balance at 30th      |         2,117 |   678,333 |   40,657 |       - |           - |    (455,648) |     265,459 | 
| April 2007           |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Loss for the period  |             - |         - |        - |       - |           - |  (1,585,425) | (1,585,425) | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
|                      |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Total recognised     |             - |         - |        - |       - |           - |  (1,585,425) | (1,585,425) | 
| income and expense   |               |           |          |         |             |              |             | 
| for the year         |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Share option         |             - |         - | (40,657) |       - |           - |       40,657 |           - | 
| cancellation         |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Shares issued on     |       105,850 |         - |        - |       - |           - |            - |     105,850 | 
| acquisition          |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Corporate            |       (2,117) | (678,333) |        - | 574,600 |           - |            - |   (105,850) | 
| restructuring        |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Shares issued in     |        85,716 | 1,414,314 |        - |       - |           - |            - |   1,500,030 | 
| year for cash        |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Costs of share issue |             - | (402,860) |        - |       - |           - |            - |   (402,860) | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Equity element of    |             - |         - |        - |       - |     370,392 |            - |     370,392 | 
| convertible loan     |               |           |          |         |             |              |             | 
| stock                |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Shares issued on     |        63,300 |   666,308 |        - |       - |   (370,392) |      370,392 |     729,608 | 
| conversion of loan   |               |           |          |         |             |              |             | 
| stock                |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Share option charge  |             - |         - |  146,610 |       - |           - |            - |     146,610 | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
|                      |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Balance at 30th      |       254,866 | 1,677,762 |  146,610 | 574,600 |           - |  (1,630,024) |   1,023,814 | 
| April 2008           |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Loss for the period  |             - |         - |        - |       - |           - |  (1,902,593) | (1,902,593) | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
|                      |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Total recognised     |             - |         - |        - |       - |           - |  (1,902,593) | (1,902,593) | 
| income and expense   |               |           |          |         |             |              |             | 
| for the year         |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Shares issued in     |       182,298 |   529,506 |        - |       - |           - |            - |     711,804 | 
| year for cash        |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Costs of share issue |             - | (109,970) |        - |       - |           - |            - |   (109,970) | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Equity element of    |             - |         - |        - |       - |      66,269 |            - |      66,269 | 
| convertible loan     |               |           |          |         |             |              |             | 
| stock                |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Shares issued on     |       117,988 |   474,870 |        - |       - |    (66,269) |       66,269 |     592,858 | 
| conversion of loan   |               |           |          |         |             |              |             | 
| stock                |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Share option charge  |             - |         - |  110,039 |       - |           - |            - |     110,039 | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
|                      |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
| Balance at 30th      |       555,152 | 2,572,168 |  256,649 | 574,600 |           - |  (3,466,348) |     492,221 | 
| April 2009           |               |           |          |         |             |              |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--------------+-------------+ 
|                      |               |           |          |         |                |        |             | 
+----------------------+---------------+-----------+----------+---------+-------------+--+--------+--+----------+--+ 
 
 
 
 
 
 
 
 
 
 
  NOTES TO THE FINANCIAL STATEMENTS 
for the year ended 30 April 2009 
 
 
 
 
1.    Basis of preparation 
 
 
The financial information set out in these financial statements does not 
constitute statutory accounts as defined in the Companies Act 2006. The 
consolidated balance sheet as at 30 April 2009 and the consolidated income 
statement, consolidated cash flow statement and associated notes for the year 
then ended have been extracted from the Group's financial statements. 
 
 
The financial information has been extracted from the Group's financial 
statements that are prepared in accordance with International Financial 
Reporting Standards (IFRS) as adopted by the European Union applied in 
accordance with the provisions of the Companies Act 2006 and under the 
historical cost convention. 
 
 
The financial information for the year ended 30 April 2008 is derived from the 
statutory accounts for that year which have been delivered to the Registrar of 
Companies.  The auditors reported on those accounts; their report was 
(i) unqualified, (ii) did not include references to any matters to which the 
auditors drew attention by way of emphasis without qualifying their report and 
(iii) did not contain statements under either Section 237 (2) or (3) of the 
Companies Act 1985. 
 
 
The statutory accounts for the year ended 30 April 2009 will be finalised on the 
basis of the financial information presented by the Directors in this 
preliminary announcement and will be delivered to the Registrar of Companies 
following the Company's Annual General Meeting. 
 
 
 
 
2.    Taxation 
 
 
The Group has tax losses available to carry forward of GBP3,824,616 (2008: 
GBP1,889,909) to offset against future trading profits. There are unrecognised 
deferred tax assets of GBP7,369 (2008: GBP8,086) on fixed asset timing 
differences and GBP764,923 (2008: GBP377,981) on trading losses carried forward. 
Both deferred assets are based on a rate of 20% which is the rate for small 
companies for 2010. 
 
 
The difference between the total tax credit and the expected tax credit is as 
follows: 
 
 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |        2009 |        2008 | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |         GBP |         GBP | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Loss before taxation                            | (1,902,593) | (1,585,425) | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Tax at 20 per cent. (2008: 20 per cent.)        |     380,519 |     317,085 | 
+-------------------------------------------------+-------------+-------------+ 
| Effects of:                                     |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Expenses not allowable for taxation             |    (90,066) |    (42,329) | 
+-------------------------------------------------+-------------+-------------+ 
| Losses not utilised                             |   (290,453) |   (274,756) | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |           - |           - | 
+-------------------------------------------------+-------------+-------------+ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.    Earnings per share - basic and diluted 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |        2009 |        2008 | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |         GBP |         GBP | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Earnings                                        |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Earnings for the purposes of basic and diluted  | (1,902,593) | (1,585,425) | 
| earnings per share being net loss attributable  |             |             | 
| to equity shareholders                          |             |             | 
+-------------------------------------------------+-------------+-------------+ 
 
 
+-------------------------------------------------+------------+------------+ 
| Number of shares                                |            |            | 
+-------------------------------------------------+------------+------------+ 
| Weighted average number of ordinary shares for  | 34,769,817 | 13,277,531 | 
| the purposes of basic and diluted earnings per  |            |            | 
| share                                           |            |            | 
+-------------------------------------------------+------------+------------+ 
 
 
Basic and diluted loss per share are the same as the Group was loss making and 
therefore any contingently issuable shares would have the effect of decreasing 
loss per share. 
 
 
 
 
 
 
4.    Cash and cash equivalents 
+-------------------------------------------------+----------+----------+ 
|                                                 |     2009 |     2008 | 
+-------------------------------------------------+----------+----------+ 
|                                                 |      GBP |      GBP | 
+-------------------------------------------------+----------+----------+ 
|                                                 |          |          | 
+-------------------------------------------------+----------+----------+ 
| Cash at bank and in hand                        |  192,742 |   55,874 | 
+-------------------------------------------------+----------+----------+ 
| Short term bank deposits                        |        - |  650,831 | 
+-------------------------------------------------+----------+----------+ 
|                                                 |          |          | 
+-------------------------------------------------+----------+----------+ 
|                                                 |  192,742 |  706,705 | 
+-------------------------------------------------+----------+----------+ 
 
 
Cash and cash equivalents comprise cash held by the Group accessible 
immediately. Rates over the period varied between 0% and 5.5%. 
 
 
The Directors consider that the carrying amount of these assets approximates to 
their fair value. The credit risk on liquid funds is limited because the 
counter-party is a bank with a high credit rating. 
  5.    Cash used in operations 
 
 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |        2009 |       2008  | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |         GBP |         GBP | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Operating loss                                  | (1,894,006) | (1,591,104) | 
+-------------------------------------------------+-------------+-------------+ 
| Depreciation charge                             |      49,985 |      19,940 | 
+-------------------------------------------------+-------------+-------------+ 
| Amortisation charge                             |       8,562 |           - | 
+-------------------------------------------------+-------------+-------------+ 
| Decrease / (Increase) in trade receivables      |      44,474 |    (67,466) | 
+-------------------------------------------------+-------------+-------------+ 
| Increase in inventories                         |    (39,746) |   (111,078) | 
+-------------------------------------------------+-------------+-------------+ 
| Increase in trade payables                      |      49,971 |      74,501 | 
+-------------------------------------------------+-------------+-------------+ 
| Loss on sale of tangible fixed assets           |       7,891 |             | 
+-------------------------------------------------+-------------+-------------+ 
| Share option charge                             |     110,039 |     146,610 | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Cash used in operations                         | (1,662,830) | (1,528,597) | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |             |             | 
+-------------------------------------------------+-------------+-------------+ 
| Tax paid                                        |           - |           - | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 |             |             | 
+-------------------------------------------------+-------------+-------------+ 
|                                                 | (1,662,830) | (1,528,597) | 
+-------------------------------------------------+-------------+-------------+ 
 
 
 
 
6.    Dividend Note 
 
 
No dividends are proposed for the year ended 30 April 2009 (year ended 30 April 
2008: nil). 
 
 
 
 
7.Copies of Report and Accounts 
 
 
The 2009 Report and Accounts will be posted to shareholders shortly and will be 
available from the Company's website www.ascensiononline.com. 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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