We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Huveaux | LSE:HVX | London | Ordinary Share | GB0031129579 | ORD 10P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 10.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
TIDMHVX
RNS Number : 8981I
Huveaux PLC
22 March 2010
Huveaux PLC
2009 PRELIMINARY RESULTS
Financial Highlights
- Revenue at GBP25.3 million (2008: GBP36.3 million)
- Revenue from retained business at GBP17.3 million (2008: GBP17.2
million)*
- EBITDA at GBP3.8 million (2008: GBP4.8 million) **
- Statutory operating profit at GBP0.6 million (2008: GBP0.2 million)
- EBITDA from retained business at GBP2.5 million (2008: GBP2.2
million)
- Normalised profit for the year of GBP1.4 million (2008: GBP1.9
million) ***
- Dividend of 1.00p per Ordinary Share intended to be declared
following a Capital Reduction (2008: no dividend)
Operating Highlights
- Continued strong organic growth in the Political Division
- Growth in Online and Events portfolio in Political Division
- Civil Service Live portfolio of events grown to three per annum
Recent Events
- Education Division sold on 19th March 2010 for GBP10 million
- Following sale of Education Division all debt repaid, leaving a
strong balance sheet
+-----------------------+-------------------+-------------------+
| Summary of Results | 2009 | 2008 |
+-----------------------+-------------------+-------------------+
| | GBP'000 | GBP'000 |
+-----------------------+-------------------+-------------------+
| Revenue | 25,286 | 36,323 |
+-----------------------+-------------------+-------------------+
| Revenue from retained | 17,335 | 17,229 |
| business * | | |
+-----------------------+-------------------+-------------------+
| EBITDA** | 3,768 | 4,845 |
+-----------------------+-------------------+-------------------+
| EBITDA from retained | 2,545 | 2,219 |
| business | | |
+-----------------------+-------------------+-------------------+
| (Loss) / Profit for | (7,785) | (3,984) |
| the year | | |
+-----------------------+-------------------+-------------------+
| Normalised profit *** | 1,418 | 1,895 |
+-----------------------+-------------------+-------------------+
| EPS on continuing | 0.93p | 1.25p |
| activities (basic) | | |
+-----------------------+-------------------+-------------------+
* Retained business is excluding the sold Education, French Healthcare and Epic
businesses. The results of Epic are included in continuing business in 2008 for
statutory purposes.
** EBITDA is calculated as earnings before interest, tax, depreciation,
amortisation of intangible assets acquired through business combinations, share
based payment charges and non-trading items.
*** Normalised pro?t is stated before amortisation of intangible assets acquired
through business combinations, share based payment charges and non-trading items
and related tax and discontinued operations.
The Group believes that these measures provide additional guidance to the
statutory measures of performance of the business. These measures are not de?ned
under adopted IFRS and therefore may not bedirectly comparable with other
companies' adjusted pro?t measures.
Non-trading items are items which, in management's judgement, need to be
disclosed by virtue of size, incidence or nature. Such items are included within
the income statement caption to which they relate and are separately disclosed
either in the notes to the consolidated ?nancial statements or on the face of
the consolidated income statement.
An analyst presentation will be held at 9.30am today at the offices of Brewin
Dolphin, 12 Smithfield Street, London EC1A 9BD, with coffee available from
9.00am.
Kevin Hand, Non-Executive Chairman of Huveaux, commented:
"The recent disposal of the Education Division completes the strategic
transformation of the Group from a disparate media portfolio, to a highly
focused political media business. The retained political business has already
been developed from a print publishing business to a modern media company with
the great majority of its revenue being derived from digital products and
events.
In 2009 there was significant growth in a number of key areas, especially the
political training business, and this led to a record profit level within the
Political Division. Within DODS, the UK and EU Monitoring products continued to
grow, winning significant business from their competitors. The 12% growth
achieved in the Political Division should be seen in the light of the difficult
trading conditions across the whole of the media space, which was exacerbated by
the fall out from the "Expenses Scandal" that hit the Westminster community in
the summer.
Following the sale of the Education Division for GBP10 million, the Group has
been able to clear down all of its debt, giving Huveaux a very strong balance
sheet, and a cash generative business. We are delighted to be able to recommend
that the Group returns to its policy of paying a dividend to its shareholders.
Huveaux is now ideally positioned for the Election in 2010, and we believe that
2010 will again show strong growth across activities of the Political Division."
For further information, please contact:
+-------------------------------+-------------------------------+
| Huveaux | |
+-------------------------------+-------------------------------+
| Kevin Hand, Non-Executive | 020 7811 5026 |
| Chairman | |
+-------------------------------+-------------------------------+
| Gerry Murray, Chief Executive | |
| Officer | |
+-------------------------------+-------------------------------+
| Rupert Levy, Finance Director | |
+-------------------------------+-------------------------------+
| | |
+-------------------------------+-------------------------------+
| Brewin Dolphin Limited | |
| (NOMAD) | |
+-------------------------------+-------------------------------+
| Sandy Fraser | 0131 225 2566 |
| | |
+-------------------------------+-------------------------------+
Note to editors:
Huveaux PLC is a public limited company listed on the Alternative Investment
Market (ticker HVX.L)
CHAIRMAN'S STATEMENT
2009 Overview
In my first Chairman's statement last year, I reported that Huveaux had set
itself on the course to better align itself with the changing economic
conditions. The deep recession in 2009 was exacerbated in our Political
Division by the furore surrounding MPs' Expenses in the summer, and the
increased vulnerability of the Labour Government.
Despite the obstacles in its way, the Political Division showed strong growth at
the EBITDA line, and is now primed for further growth.
At the same time, the Education Division was suffering from the loss of SATs at
Key Stage 3 and the general weakness in the Retail Market. This is reflected in
the Education Division's results for the year.
Therefore, in the last quarter of 2009, your Board undertook a strategic review,
designed to identify how best to maximise shareholder returns from the two
Divisions. As announced on 19 March 2010, we sold the Education Division for a
total consideration of GBP10 million, which has allowed the Group to remove all
of its debt.
For the whole Group, revenue declined from GBP36.3m to GBP25.3m, but this
includes both the divested companies in 2008 and Education in 2009. On a
retained basis, the Political Division delivered revenues that grew from
GBP17.2m to GBP17.3m. For the whole Group, earnings before interest, tax,
amortisation and non-trading items (EBITDA) was GBP3.8 million (2008: GBP4.8
million) which was broadly in line with expectations. The retained Political
Division performed strongly, with EBITDA of GBP3.4m being 12% ahead of 2008.
Non-trading items amounted to a total of GBP0.2m (2008: GBP0.2m) which reflects
the impact of the Group's continued cost-cutting initiatives.
Following the disposal of the Education Division, and in anticipation of a
profitable year in 2010, your Board is recommending a return to its previous
policy of paying an annual dividend. Due to the balance sheet position, it is
not possible to declare a dividend at this time. The Board is therefore
proposing a resolution at the forthcoming AGM to permit a Capital Reduction to
be actioned in order to create distributable reserves. Following this Capital
Reduction, the Board intends to declare an interim dividend of 1.00 pence per
share (2008: no dividend) which would be paid on the 1st December 2010.
Strategy
The Political Division has continued to drive its strategy forward with success.
Over the last few years the DODS businesses have developed into a modern media
group with increasingly significant digital and events revenue. This has
continued well in 2009.
The rapid decline in the display advertising market has been more than offset by
revenue growth elsewhere - with our Political Knowledge area showing 24% revenue
growth and delivering this growth at a high margin, with EBITDA doubling.
Overall, the proportion of the overall revenue in this Division that is
attributable to Digital and Events has increased from 32% in 2004 to 61% in 2009
(2008: 52%).
The Division is now a highly focused and efficient operation, which allows
significant campaigns to be run on behalf of its clients, across the complete
range of modern media products and is well positioned to benefit from the
increased activity generated by the imminent UK General Election.
The Board, Management and People
Following a year of change in 2008, 2009 has seen a settled year at Board level
within the Group.
Within the remainder of the Group, Huveaux, like many other UK media companies,
has had to restructure businesses so as to align them better with the new
realities in their markets. This has been the case across the Education
Division and in Fenman within the Political Division. These restructurings are
not easy, and they have been completed successfully thanks to the hard work of
the people involved.
I would like to thank all of our management and staff for their continued
efforts during another challenging year. This effort has been rewarded in a
strong set of results and has been vital in ensuring that Huveaux remains in a
strong position to compete well in the year ahead.
Outlook
The UK General Election will provide the Group with significant opportunities in
the next few months, and will drive an increased need for our data and other
products. Huveaux does not expect there to be any change to the downward trend
in display advertising sales, however the business is now set up to be
significantly less dependent on this revenue stream. The digital information
and events businesses continue to flourish and 2010 will see an increase in the
amount of traditional printed products moving to the online subscription model.
As a result, the Board is confident that the smaller, focused Huveaux will
deliver a strong performance in what is sure to be a most interesting year in UK
Politics.
CHIEF EXECUTIVES' BUSINESS AND FINANCIAL REVIEW
Introduction
Following on from a year of change in 2008, 2009 saw the Group focus on the two
Divisions with a view to maximising the shareholder value from each. Our
Education Division traded in a very tough market for all education publishers,
reflecting the abolition of the Key Stage 3 SATs in October 2008, the general
decline in Primary and the effect of the recession in the trade market. The
strategic review of the business towards the end of 2009 led to the sale of the
Education Division in March 2010 and has led to the Group being focused entirely
on Political media.
In 2009 the Political Division again showed growth in revenue and, most
encouragingly, showed even stronger growth at the EBITDA level. Despite the
tough economic and market-specific conditions that it faced across its markets,
the portfolio produced significant areas of growth that more than compensated
for the areas of weakness. Increasingly the Division provides a portfolio of
products to its clients, giving it significant advantage over smaller
competitors in its markets.
Business Overview
Although we retained the Education Division for the whole of 2009, the Division
is shown as an "asset held for sale" in the balance sheet of the Group as at the
31st December 2009. In the same way, the future business of the Group is only
concerned with the Political Division.
The Political Division is in a strong position, showing continued revenue and
EBITDA growth and has established a number of newer products across both events
and digital which are market-leading in their own right. Our product portfolio
is unique and has allowed us to solidify our relationships with our customers
and to increase greatly our average transaction value.
The cost-reduction exercise that was actioned over 2007 and 2008 continued into
2009, albeit in the year more focused on a rationalisation of the Fenman
operation. The cost base in Head Office continued to fall and is now of a level
that cannot be further reduced while remaining an AIM listed company.
The MPs Expenses Scandal and the hiatus before the 2010 General Election in the
UK were the major factors within our markets - and the worldwide recession was
the major macroeconomic factor. These factors did affect our business - with
the Party Conference season being particularly affected by the Expenses Scandal,
but even here we showed good growth in terms of the number of events run -
making us the biggest supplier of fringe events to the Party Conferences. At
the same time, our Civil Service businesses grew well, with the second edition
of Civil Service Live building on the success of the first edition and leading
to the profitable launch of two smaller regional events, in Gateshead and
Manchester.
Overall, the star performer was the Political Knowledge area, which won a number
of longer term contracts with Government departments and achieved a doubling of
EBITDA.
2010 Priorities
Following the disposal of the Education Division, the focus of the Group is in
maximising the potential of the Political Division. 2010 will see a General
Election in the UK and the short-term focus of the Division is on maximising the
return from this event. The degree of change within the UK Parliament will
drive the need for our data and an increase in the amount of lobbying activity
around the Westminster village.
The portfolio will continue to focus on the growth areas of events and digital
products where opportunities are greater and there is scope for further
improvements in margin. This will continue to require further investments in
technology in 2010 and beyond. The UK recession will continue to impact on the
business and the threat of departmental cost cuttings following the election of
a new government will dampen the growth within the businesses aimed at the Civil
Service. Nevertheless, 2010 is expected to show good growth and further
consolidation of our unique position in the political market.
Political Division
+--------------------+--------------------+--------------------+
| GBP'000 | 2009 | 2008 |
+--------------------+--------------------+--------------------+
| Revenue | 17,335 | 17,229 |
+--------------------+--------------------+--------------------+
| EBITDA* | 3,445 | 3,063 |
+--------------------+--------------------+--------------------+
*A reconciliation between EBITDA and operating profit is provided in Schedule A.
The 2009 political landscape in the UK was transformed by the MPs' Expenses
revelations which started in the early summer. This had a material affect on
the advertising market around the Party Conferences and reduced the desire to
lobby current Members of Parliament. In addition, the continued weakness of the
Labour Government resulted in the focus of the political markets switching early
to 2010 and the General Election.
For Huveaux, this was the challenging background to a very strong year - showing
significant EBITDA growth on a slight increase in revenues. The events
businesses, especially Political Knowledge, and the digital information
businesses continued to grow strongly, offsetting the dramatic fall in display
advertising.
Highlights:
- Division grew revenue by 1% and EBITDA by 12%.
- DODS businesses grew revenue by 3% and EBITDA by 28%.
- The Political Knowledge training and events products grew revenue by
24% and EBITDA doubled.
- The UK and EU political monitoring products grew revenue by 24% and
captured additional market share.
- We remain the clear leader in EU political monitoring and this
business has tripled in size since 2007.
- DODS ran 44 fringe events at Party Conferences (2008: 29) making
DODS the largest organiser of fringe events.
- DODS ran the second Civil Service Live, showcasing best practice and
innovation in public sector delivery by the Civil Service. Visitors to the
exhibition included HRH The Prince of Wales. In addition, DODS ran two Regional
Civil Service Live events - in Gateshead and Manchester.
The Parliament unit was the most affected by the MPs' Expenses issues and the
run up to the UK Election. Display advertising continued to fall - The House
Magazine was 18% below 2008, while Public Affairs News was further weakened by
the quiet market. While the traditional revenue streams fell away, the Division
worked hard to develop cross-media campaigns for its clients, which resulted in
larger contracts being won. An integral part of these campaigns was the fringe
events at the Party Conferences which again grew numerically from 29 to 44 (14
in 2007). 2010 has already seen a further pick up in these campaigns and
prospects across this Division remain good around the Election. Electus, our
recruitment brand, suffered from the reduced activity in the public affairs
market, but is well placed to exploit the return of activity in 2010.
Our Government unit grew revenue by 18% on 2008 despite the weakness of the core
Civil Service World newspaper. Display advertising on this product fell 18% in
the year. This reduction in revenue was more than offset by the growth in the
exhibition portfolio under the brand Civil Service Live. Following the success
of the launch event in April 2008, the exhibition ran in July 2009 at Olympia.
The combination of conferences, seminars and workshops with exhibition stands
provided the 8,000 visitors with a must-attend event. Speakers included HRH The
Prince of Wales, Baron Sugar, Alastair Campbell, Sir Gus O'Donnell and Peter
Jones. On the back of this success, we ran two Regional events (in Gateshead
and Manchester) also in conjunction with the Cabinet Office. These events were
an integral part of the Cabinet Office's aim of spreading best practice and
innovation to the regional centres of the Civil Service. 2010 will see further
development of the online product which acts as a social and business networking
site for the UK civil service.
The Information area showed overall growth, with revenues from the traditional
book products falling and being more than offset by the continued development of
digital products. UK Monitoring showed a 14% growth in revenue and continues to
take market share from its main competitors. The recent launch of the updated
directory product (DODS People) has further enhanced the offering in this area.
With the UK Election now expected to show a record turnover of MPs, the demand
for our information will increase and we are well positioned to leverage this
market-leading position.
With regard to the European portfolio of the business, while Parliament Magazine
showed a 28% reduction in advertising in the year - partly due to the hiatus in
the run up to the June Elections - this fall was offset by strong performances
of the Regional Review and the Research Review. The main driver of the overall
revenue increase in Europe was the EU Monitoring service which grew by 52% and
has created a unique product in the market.
The Political Knowledge events had an outstanding year. Following revenue
growth of 23% in 2008, the portfolio grew by a further 24% in 2009 and did so at
a very high margin which doubled EBITDA.
Growth in this portfolio was across all products, with the Westminster Explained
open courses growing by 73% and the Westminster Briefing conferences increasing
by 39%. We continue to win long-term contracts as part of the new OGC framework
and in 2009 won training contracts with The Home Office, The Department of
Children, Schools & Families, The Health & Safety Executive, the Government
Office Network and the Cabinet Office. The deepening position of the products
in the operations of the government departments will place the products well in
the light of the inevitable reduction in departmental budgets following the
General Election.
In addition, we ran further Partnership Conferences with Civil Service World and
House Magazine - increasing revenue by 75%. As well as our annual events such
as The Coming Year in Parliament, and Annual Regulators Conference, we have held
a number of very successful events in 2009, including Unlocking the Civil
Service, Diversity & Equality in Government, and PSI in Action. Speakers at
these events included Rt Hon Harriet Harman QC MP, Rt Hon Michael Howard, QC MP
and Simon Hughes MP. In all cases, the close relationship of DODS to both
parliament and the civil service ensures that the speakers are of the highest
quality.
In France, Le Trombinoscope had a quiet year as there were no new elections.
This resulted in a fall in revenue from 2008, in part due to the weakness of the
display advertising market. In addition, the delay in naming the new European
Commission resulted in a fall in revenue from the European edition.
In 2009 we restructured the UK Training unit, Fenman. The market for training
manuals and products had slowed in 2008 and 2009 continued this trend. The
products business was therefore down-sized and now concentrates on the DVD
business which is higher margin and requires less warehouse space. Training
Journal was also hit by the UK economic conditions, but is now the only player
in the market and, as such, is well placed to exploit any increased activity
from a profitable position.
Education Division
+--------------------+--------------------+--------------------+
| GBP'000 | 2009 | 2008 |
+--------------------+--------------------+--------------------+
| Revenue | 7,951 | 10,713 |
+--------------------+--------------------+--------------------+
| EBITDA* | 1,223 | 2,262 |
+--------------------+--------------------+--------------------+
A reconciliation between EBITDA and operating profit is provided in Schedule A.
Following the disposal of the Division in March 2010, the Education Division is
shown in discontinued operations in these accounts. Nevertheless, the Division
was owned by Huveaux for the whole of the year and, as such, was managed as an
ongoing Division of the business.
The results of the Division reflect the very difficult market in which the
Division operated, nearly all of which was caused by external factors. Indeed
good market share increases have been achieved within the key GCSE market.
The abolition of Key Stage 3 SATs in October 2008 had a material effect on the
trading of the Education Division from the fourth quarter of 2008. The full
year effect of this abolition was seen in 2009, with the market for Key Stage 3
books within the revision market having fallen by 60% from its 2007 levels.
At the same time, within Primary the move away from SATs continued with the
ending of the Science SAT from May 2009 and significant comment from Teachers'
Unions recommending the removal of all testing at Primary level. While the
trade market for Primary level product was steady, the schools market fell with
sales down 37%.
The above market-specific factors were exacerbated by the effect of the retail
recession on the High Street. Footfall in bookshops fell, especially in the
first half of the year, resulting in lower sales across all of the portfolio.
The effect of the recession on bookshops was highlighted in November 2009 with
Borders going into administration and then closing all shops immediately prior
to Christmas. The latter closure resulted in a GBP63k cost to Huveaux due to
the writing off of its debtor balance.
Overall, revenue was 23% below 2008 and EBITDA fell by 46%. The reduction in
revenue was mitigated to some extent by the cost reduction exercise performed in
the first half of the year, which saw over 20% of the employees in the Division
leave the company. This reflected that while the effect of the recession is
expected to be temporary, the move away from SATs is likely to continue into the
medium term.
Letts and Lonsdale finished the year with sales of GBP6.6 million (2008: GBP8.2
million). Both school sales and trade sales were similarly lower than 2008. As
in 2008, the reduced sales levels at some of the traditional retailers was
offset by a continued focus on non-traditional outlets. As an example of this,
sales to ASDA increased by 123% over 2008, while sales to Costco increased by
nearly 90%. Of the traditional sellers, sales to Amazon showed an increase of
20%.
School sales were depressed throughout the year, however the back to school
period was the first to involve the sales of the new curriculum GCSE subjects.
In the period from September to December 2009, we sold 70% more units relating
to these subjects than in the equivalent period in 2008, increasing revenue by
22%. In addition, there was an increase in the number of establishments that
bought these books.
Within Leckie & Leckie, trade sales of own-brand books were 1% higher despite
the recession in the High Street. This reflects the very strong relationships
which Leckie & Leckie enjoys with the key retailers and its established position
as the market leader. School sales fell by 19% compared with 2008 due to the
reduction in schools budgets across the market for the second consecutive years.
There was no fall in the market share of the books.
With regard to the Practice Papers, our agreement with the SQA ceased in the
second quarter of the year and, in response to clear demand from both trade and
schools, Leckie & Leckie launched its own range of Practice Papers. These
papers contained enhanced functionality to those produced for the SQA and were
priced lower than the previous papers. The initial take up of these papers was
encouraging across both schools and the trade outlets. In 2010 Leckie & Leckie
will produce a wider range of these papers.
Financial Review
Revenue and Operating Results
Operating performance was mixed across the portfolio. Overall revenue fell from
GBP36.3 million to GBP25.3 million and EBITDA fell from GBP4.8 million to GBP3.8
million. This decline includes the
disposed businesses - the Education Division and the French Healthcare business
within "discontinued items" and, in 2008, Epic within "continuing business" for
statutory purposes.
On a retained basis, revenue was slightly higher at GBP17.3 million, while
EBITDA of GBP2.55 million was 15% ahead of 2008 (2008: GBP2.22 million). The
loss for the year was GBP7.8 million (2008: GBP4.0 million). This includes the
effect of the disposals in 2008 and the effect of the write down in the carrying
value of the Education Division to the disposal value in 2009.
Non-trading items
Non-trading items for the year totalled GBP0.2 million, relating to redundancy
and related staff costs within a number of reorganizations and restructurings
within the Group.
Taxation
The utilisation of tax losses in the year has led to a low tax payment in the
year and a net tax charge of GBP0.1 million (2008: credit of GBP1.0 million) in
the year. Whilst the Group continues to seek to optimise its tax position going
forward, it is expected that the effective tax rate will increase.
Earnings per Share (EPS)
Basic EPS (before non-trading items, discontinued operations, share based
payments credits and amortisation of intangible assets acquired through business
combinations) was a loss per share of 5.12 pence (2008: loss per share of 2.62
pence). Normalised EPS on continuing operations was 0.93 pence (2008: 1.25
pence).
Dividends
The Board is proposing a Capital Reduction to be actioned so that a dividend
will be able to be declared of 1.00 pence per share (2008: no dividend).
Subject to the approval of shareholders at the forthcoming Annual General
Meeting, this Capital Reduction will be actioned such that the dividend is
intended to be paid on 1st December 2010 to shareholders.
Liquidity and Capital Resources
Interest payable during the year amounted to GBP0.6 million (2008: GBP1.1
million). This decrease re?ects both the reduction of the gross debt and the
reduction in interest rates in the latter half of 2008. Interest receivable was
GBP0.0 million (2008: GBP0.3 million).
During the year, underlying cash conversion was in line with expectations. The
Group generated GBP2.4 million (2008: GBP0.3 million) of cash from its operating
activities. At the year-end, the Group had cash balances of GBP0.4 million
(2008: GBP0.1 million) resulting in net debt of GBP6.6 million (2008: GBP9.0
million).
During the year, Huveaux repaid GBP2.1 million of its debt and ended the year
with gross bank debt of GBP7.0 million (2008: GBP9.1 million). Following the
disposal of the Education Division in March 2010, the Group has repaid all of
its outstanding debt.
Derivatives and Other Instruments
In 2009, Huveaux's ?nancial instruments comprised bank loans, cash deposits and
other items such as normal receivables and payables. The main purpose of these
?nancial instruments is to ?nance the Group's day-to-day operations.
During 2009, the Company entered into certain derivative transactions in order
to manage the ?nancial risk exposures arising from the Group's activities such
as interest rate, liquidity and foreign currency risks. The Group's policy is
that no speculative trading in derivatives is
permitted.
Huveaux PLC
2009 PRELIMINARY RESULTS
CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2009
+-------------------------------------+------+----------+----------+
| | Note | Audited | Audited |
+-------------------------------------+------+----------+----------+
| | | 2009 | 2008 |
+-------------------------------------+------+----------+----------+
| | | GBP'000 | GBP'000 |
+-------------------------------------+------+----------+----------+
| Revenue | | 17,335 | 20,046 |
+-------------------------------------+------+----------+----------+
| Cost of sales | | (11,028) | (12,389) |
+-------------------------------------+------+----------+----------+
| | | | |
| Gross profit | | 6,307 | 7,657 |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Administrative expenses: | | | |
+-------------------------------------+------+----------+----------+
| Non-trading items | 2 | (178) | (190) |
+-------------------------------------+------+----------+----------+
| Profit on disposal of subsidiary | 4 | - | 300 |
| undertaking | | | |
+-------------------------------------+------+----------+----------+
| Amortisation of intangible assets | | | |
| acquired through business | | (1,349) | (1,754) |
| combinations | | | |
+-------------------------------------+------+----------+----------+
| Net administrative expenses | | (4,213) | (5,863) |
+-------------------------------------+------+----------+----------+
| Total administrative expenses | | (5,740) | (7,507) |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Operating profit | | 567 | 150 |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Finance income | | 14 | 262 |
+-------------------------------------+------+----------+----------+
| Financing costs | | (569) | (1,058) |
+-------------------------------------+------+----------+----------+
| | | | |
| Profit / (loss) before tax | | 12 | (646) |
+-------------------------------------+------+----------+----------+
| Income tax (charge) / credit | 3 | (59) | 975 |
+-------------------------------------+------+----------+----------+
| | | | |
| (Loss) / Profit after tax from | | (47) | 329 |
| continuing operations | | | |
+-------------------------------------+------+----------+----------+
| Results from discontinued | 4 | (7,738) | (4,313) |
| operations | | | |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Loss for the year attributable to | | | |
| equity holders of parent company | | (7,785) | (3,984) |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Loss per share | | | |
+-------------------------------------+------+----------+----------+
| Basic | 6 | (5.12)p | (2.62)p |
+-------------------------------------+------+----------+----------+
| Diluted | 6 | (5.12)p | (2.62)p |
+-------------------------------------+------+----------+----------+
| Loss per share on continuing | | | |
| operations | | | |
+-------------------------------------+------+----------+----------+
| Basic | 6 | (0.03)p | 0.22 p |
+-------------------------------------+------+----------+----------+
| Diluted | 6 | (0.03)p | 0.22 p |
+-------------------------------------+------+----------+----------+
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2009
+-------------------------------------+---+---------+---------+
| | | Audited | Audited |
+-------------------------------------+---+---------+---------+
| | | 2009 | 2008 |
+-------------------------------------+---+---------+---------+
| | | GBP'000 | GBP'000 |
+-------------------------------------+---+---------+---------+
| Loss for the year | | (7,785) | (3,984) |
+-------------------------------------+---+---------+---------+
| Exchange differences recognised on | | | |
| disposal of discontinued operations | | - | 565 |
+-------------------------------------+---+---------+---------+
| Exchange differences on translation | | (3) | 21 |
| of foreign operations | | | |
+-------------------------------------+---+---------+---------+
| Other comprehensive (loss) / income | | (3) | 586 |
| for the year | | | |
+-------------------------------------+---+---------+---------+
| | | | |
+-------------------------------------+---+---------+---------+
| Total comprehensive loss for the | | | |
| year attributable to equity holders | | (7,788) | (3,398) |
| of parent company | | | |
+-------------------------------------+---+---------+---------+
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 31 December 2009
+-------------------------------------+------+----------+----------+
| | Note | Audited | Audited |
+-------------------------------------+------+----------+----------+
| | | 2009 | 2008 |
+-------------------------------------+------+----------+----------+
| | | GBP'000 | GBP'000 |
+-------------------------------------+------+----------+----------+
| Goodwill | | 18,906 | 22,847 |
+-------------------------------------+------+----------+----------+
| Intangible assets | | 15,720 | 31,024 |
+-------------------------------------+------+----------+----------+
| Property, plant and equipment | | 132 | 378 |
+-------------------------------------+------+----------+----------+
| Non-current assets | | 34,758 | 54,249 |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Inventories | | 123 | 2,496 |
+-------------------------------------+------+----------+----------+
| Trade and other receivables | | 2,797 | 4,967 |
+-------------------------------------+------+----------+----------+
| Derivative financial instruments | | 35 | 45 |
+-------------------------------------+------+----------+----------+
| Cash | | 428 | 96 |
+-------------------------------------+------+----------+----------+
| Assets classified as held for sale | | 10,733 | - |
+-------------------------------------+------+----------+----------+
| Current assets | | 14,116 | 7,604 |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Interest bearing loans and | 7 | (2,130) | (2,130) |
| borrowings | | | |
+-------------------------------------+------+----------+----------+
| Income tax payable | | (311) | (240) |
+-------------------------------------+------+----------+----------+
| Trade and other payables | | (4,077) | (6,207) |
+-------------------------------------+------+----------+----------+
| Liabilities classified as held for | | (1,359) | - |
| sale | | | |
+-------------------------------------+------+----------+----------+
| Current liabilities | | (7,877) | (8,577) |
+-------------------------------------+------+----------+----------+
| Net current assets / (liabilities) | | 6,239 | (973) |
+-------------------------------------+------+----------+----------+
| Total assets less current | | 40,997 | 53,276 |
| liabilities | | | |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Interest bearing loans and | 7 | (4,880) | (7,010) |
| borrowings | | | |
+-------------------------------------+------+----------+----------+
| Deferred tax liability | | (2,601) | (4,937) |
+-------------------------------------+------+----------+----------+
| Non-current liabilities | | (7,481) | (11,947) |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Net assets | | 33,516 | 41,329 |
+-------------------------------------+------+----------+----------+
| | | | |
+-------------------------------------+------+----------+----------+
| Equity attributable to equity | | | |
| holders of parent company | | | |
+-------------------------------------+------+----------+----------+
| Issued capital | | 15,200 | 15,200 |
+-------------------------------------+------+----------+----------+
| Share premium | | 30,816 | 30,816 |
+-------------------------------------+------+----------+----------+
| Other reserves | | 409 | 409 |
+-------------------------------------+------+----------+----------+
| Retained deficit | | (12,927) | (5,117) |
+-------------------------------------+------+----------+----------+
| Translation reserve | | 18 | 21 |
+-------------------------------------+------+----------+----------+
| Total equity | | 33,516 | 41,329 |
+-------------------------------------+------+----------+----------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2009
+---------------+---------+---------+---------+----------+-------------+---------------+
| | Audited | Audited | Audited | Audited | Audited | Audited |
+---------------+---------+---------+---------+----------+-------------+---------------+
| | Share | Share | Merger | Retained | Translation | Total |
| | Capital | Premium | Reserve | Earnings | Reserve | Shareholders' |
| | | | | | | Funds |
+---------------+---------+---------+---------+----------+-------------+---------------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+---------------+---------+---------+---------+----------+-------------+---------------+
| At 1 January | 15,200 | 30,816 | 409 | 25 | (565) | 45,885 |
| 2008 | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| Total | | | | | | |
| comprehensive | | | | | | |
| income | - | - | - | (3,984) | - | (3,984) |
| Loss for the | | | | | | |
| year | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| Transactions | | | | | | |
| with | | | | | | |
| shareholders | | | | | | |
| recorded | - | - | - | (1,140) | - | (1,140) |
| directly in | | | | | | |
| equity | | | | | | |
| Distributions | | | | | | |
| to owners | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| Other | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
| Exchange | - | - | - | - | 565 | 565 |
| differences | | | | | | |
| recognised on | | | | | | |
| disposal | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| Currency | | | | | | |
| translation | - | - | - | - | 21 | 21 |
| differences | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| Share based | | | | | | |
| payment | - | - | - | (18) | - | (18) |
| charge | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| At 1 January | 15,200 | 30,816 | 409 | (5,117) | 21 | 41,329 |
| 2009 | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| Total | | | | | | |
| comprehensive | | | | | | |
| income | - | - | - | (7,785) | - | (7,785) |
| Loss for the | | | | | | |
| year | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| Other | | | | | | |
| comprehensive | | | | | | |
| income | | | | | | |
| Currency | - | - | - | - | (3) | (3) |
| translation | | | | | | |
| differences | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| Share based | | | | | | |
| payment | - | - | - | (25) | - | (25) |
| charge | | | | | | |
+---------------+---------+---------+---------+----------+-------------+---------------+
| | 15,200 | 30,816 | 409 | (12,927) | 18 | 33,516 |
+---------------+---------+---------+---------+----------+-------------+---------------+
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2009
+-------------------------------------+------+---------+----------+
| | Note | Audited | Audited |
+-------------------------------------+------+---------+----------+
| | | 2009 | 2008 |
+-------------------------------------+------+---------+----------+
| | | GBP'000 | GBP'000 |
+-------------------------------------+------+---------+----------+
| Loss for the year | | (7,785) | (3,984) |
+-------------------------------------+------+---------+----------+
| Depreciation of property, plant and | | 109 | 79 |
| equipment | | | |
+-------------------------------------+------+---------+----------+
| Amortisation of intangible assets | | | |
| acquired through business | | 1,349 | 1,754 |
| combinations | | | |
+-------------------------------------+------+---------+----------+
| Amortisation of other intangible | | 355 | 281 |
| assets | | | |
+-------------------------------------+------+---------+----------+
| Results from discontinued | | 7,738 | 4,313 |
| operations | | | |
+-------------------------------------+------+---------+----------+
| Profit on sale of subsidiary | | - | (300) |
| undertaking | | | |
+-------------------------------------+------+---------+----------+
| Share based payments charges | | (12) | (24) |
+-------------------------------------+------+---------+----------+
| Net finance costs | | 555 | 796 |
+-------------------------------------+------+---------+----------+
| Income tax charge / (credit) | | 59 | (975) |
+-------------------------------------+------+---------+----------+
| Cash flow relating to restructuring | | (178) | (899) |
| provisions | | | |
+-------------------------------------+------+---------+----------+
| | | | |
| Operating cash flows before | | 2,190 | 1,041 |
| movements in working capital | | | |
+-------------------------------------+------+---------+----------+
| Change in inventories | | 100 | 714 |
+-------------------------------------+------+---------+----------+
| Change in receivables | | 730 | 6,612 |
+-------------------------------------+------+---------+----------+
| Change in payables | | (222) | (8,059) |
+-------------------------------------+------+---------+----------+
| | | | |
| Cash generated by operations | | 2,798 | 308 |
+-------------------------------------+------+---------+----------+
| Income tax paid | | (408) | (22) |
+-------------------------------------+------+---------+----------+
| | | | |
| Net cash from operating activities | | 2,390 | 286 |
+-------------------------------------+------+---------+----------+
| | | | |
+-------------------------------------+------+---------+----------+
| Cash flows from investing | | | |
| activities | | | |
+-------------------------------------+------+---------+----------+
| Interest and similar income | | 14 | 262 |
| received | | | |
+-------------------------------------+------+---------+----------+
| Proceeds from sale of property, | | 5 | 439 |
| plant and equipment | | | |
+-------------------------------------+------+---------+----------+
| Proceeds from sale of subsidiary | | - | 4,600 |
| undertaking | | | |
+-------------------------------------+------+---------+----------+
| Cash divested with sale of | | - | (69) |
| subsidiary undertaking | | | |
+-------------------------------------+------+---------+----------+
| Acquisition of property, plant and | | (70) | (113) |
| equipment | | | |
+-------------------------------------+------+---------+----------+
| Acquisition of other intangible | | (262) | (269) |
| assets | | | |
+-------------------------------------+------+---------+----------+
| Net cash (used in) / provided by | | (313) | 4,850 |
| investing activities | | | |
+-------------------------------------+------+---------+----------+
| | | | |
+-------------------------------------+------+---------+----------+
| Cash flows from financing | | | |
| activities | | | |
+-------------------------------------+------+---------+----------+
| Interest and similar expenses paid | | (684) | (958) |
+-------------------------------------+------+---------+----------+
| Repayment of borrowings | | (2,130) | (11,525) |
+-------------------------------------+------+---------+----------+
| Dividends paid | | - | (1,140) |
+-------------------------------------+------+---------+----------+
| Net cash used in financing | | (2,814) | (13,623) |
| activities | | | |
+-------------------------------------+------+---------+----------+
| | | | |
+-------------------------------------+------+---------+----------+
| Cash flows from discontinued | | | |
| operations | | | |
+-------------------------------------+------+---------+----------+
| Net cash increase from operating | | 2,068 | 3,687 |
| activities | | | |
+-------------------------------------+------+---------+----------+
| Net cash from investing activities | | (1,006) | 3,939 |
+-------------------------------------+------+---------+----------+
| Net cash used in financing | | - | (196) |
| activities | | | |
+-------------------------------------+------+---------+----------+
| Net increase in cash | | 1,062 | 7,430 |
+-------------------------------------+------+---------+----------+
| | | | |
+-------------------------------------+------+---------+----------+
| | | | |
+-------------------------------------+------+---------+----------+
| Net increase / (decrease) in cash | | 325 | (1,057) |
+-------------------------------------+------+---------+----------+
| Opening cash | | 96 | 1,994 |
+-------------------------------------+------+---------+----------+
| Effect of exchange rate | | 7 | (841) |
| fluctuations on cash held | | | |
+-------------------------------------+------+---------+----------+
| | | | |
+-------------------------------------+------+---------+----------+
| Closing cash | 8 | 428 | 96 |
+-------------------------------------+------+---------+----------+
Notes to the preliminary announcement
31 December 2009
1 Basis of Preparation
The Group financial statements consolidate those of Huveaux PLC and its
subsidiaries (together referred to as the "Group"). The financial statements
have been prepared on the basis of the accounting policies set out on pages 10
to 15 of the Huveaux PLC Interim Report for 2009 which have been consistently
applied.
The financial information set out above does not constitute the Group's
statutory accounts for the years ended 31 December 2009 or 2008. Statutory
accounts for 2008 which were prepared under IFRS, have been delivered to the
registrar of companies. The auditors have reported on the 2008 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
reports and (iii) did not contain statements under section 237(2) or (3) of the
Companies Act 1985. The statutory accounts for 2009 prepared under accounting
standards adopted by the EU, 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 in due course.
As required by EU law (IAS regulation EC 1606/2002) the Group's accounts have
been prepared in accordance with International Financial Reporting Standards
endorsed by the International Accounting Standards Board (IASB) as adopted by
the EU ("Adopted IFRS").
2 Non-trading items
+-------------------------------------+---------+---------+
| | 2009 | 2008 |
+-------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+-------------------------------------+---------+---------+
| Redundancy and people related costs | 178 | 151 |
+-------------------------------------+---------+---------+
| Abortive deal costs | - | 39 |
+-------------------------------------+---------+---------+
| | 178 | 190 |
+-------------------------------------+---------+---------+
Non-trading items are items which in management's judgement need to be disclosed
by virtue of their size, incidence or nature. Such items are included within
the income statement caption to which they relate and are separately disclosed
either in the notes to the consolidated financial statements or of the face of
the consolidated income statement.
Non-trading redundancy and people related costs represent the effect of a Group
initiative to reduce costs. Abortive deal costs represent advisory fees relating
to the aborted transaction with a private equity firm.
3 Taxation
+----------------------------------------+---------+---------+
| | 2009 | 2008 |
+----------------------------------------+---------+---------+
| | GBP'000 | GBP'000 |
+----------------------------------------+---------+---------+
| Current tax | | |
+----------------------------------------+---------+---------+
| Current tax on income for the year at | 573 | 363 |
| 28% (2008: 28.5%) | | |
+----------------------------------------+---------+---------+
| Adjustments in respect of prior | (11) | (22) |
| periods | | |
+----------------------------------------+---------+---------+
| | 562 | 341 |
+----------------------------------------+---------+---------+
| Double taxation relief | (1) | (2) |
+----------------------------------------+---------+---------+
| | | |
+----------------------------------------+---------+---------+
| Overseas tax | | |
+----------------------------------------+---------+---------+
| Current tax expense on income for the | 1 | 2 |
| year at 28% (2008: 28.5%) | | |
+----------------------------------------+---------+---------+
| Total current tax expense | 562 | 341 |
+----------------------------------------+---------+---------+
| | | |
+----------------------------------------+---------+---------+
| Deferred tax | | |
+----------------------------------------+---------+---------+
| Origination and reversal of temporary | (500) | (1,126) |
| differences | | |
+----------------------------------------+---------+---------+
| Benefit from previously unrecognised | (3) | (190) |
| tax losses | | |
+----------------------------------------+---------+---------+
| Total deferred tax income | (503) | (1,316) |
+----------------------------------------+---------+---------+
| | | |
+----------------------------------------+---------+---------+
| Total income tax charge / (credit) | 59 | (975) |
+----------------------------------------+---------+---------+
The effect of non-trading items charged during the year is to increase the tax
charge by GBP50,000 (2008: GBP53,000).
The credit to the income statement in respect of deferred tax of GBP503,000
(2008: GBP1,316,000) is stated after recording a deferred tax asset of GBP3,000
(2008: GBP190,000) in respect of tax losses.
Included within the tax credit to the income statement is GBPnil of tax-related
goodwill written off on the disposal of businesses (2008: GBP548,000). Included
within the tax credit to the income statement is GBP1,613,000 of tax-related
goodwill written off on the impairment of the education division (2008: GBPnil),
which is included in the results of discontinued operations.
The tax charge for the period differs from the standard rate of corporation tax
in the UK of 28% (2008: 28.5%). The differences are explained below:
+---------------------------------------+---+---------+---------+
| Income tax reconciliation | | 2009 | 2008 |
+---------------------------------------+---+---------+---------+
| | | GBP'000 | GBP'000 |
+---------------------------------------+---+---------+---------+
| Profit / (loss) before tax | | 12 | (646) |
+---------------------------------------+---+---------+---------+
| Notional tax charge at standard rate | | 3 | (184) |
| of 28% (2008: 28.5%) | | | |
+---------------------------------------+---+---------+---------+
| | | | |
+---------------------------------------+---+---------+---------+
| Effects of: | | | |
+---------------------------------------+---+---------+---------+
| Expenses not deductible for tax | | 607 | 402 |
| purposes | | | |
+---------------------------------------+---+---------+---------+
| Accelerated capital allowances and | | (527) | (1,229) |
| temporary differences | | | |
+---------------------------------------+---+---------+---------+
| Continued operations sold in the year | | - | 250 |
+---------------------------------------+---+---------+---------+
| Adjustments to tax charge in respect | | (11) | (22) |
| of prior periods | | | |
+---------------------------------------+---+---------+---------+
| Difference between UK and French tax | | (10) | - |
| rates | | | |
+---------------------------------------+---+---------+---------+
| Recognition of previously | | (3) | (190) |
| unrecognised tax losses | | | |
+---------------------------------------+---+---------+---------+
| Other | | - | (2) |
+---------------------------------------+---+---------+---------+
| Total income tax expense/(credit) | | 59 | (975) |
+---------------------------------------+---+---------+---------+
4 Discontinued operations
Discontinued operations for the year ended 31 December 2009 includes the
Education Division only. Discontinued operations for the year ended 31 December
2008 includes both the French Healthcare business, which was sold on the 3 June
2008 and the Education Division which has been classified as held for sale as at
31 December 2009. Results attributable to this business were as follows:
+---------------------------------------+---+---------+---------+
| | | 2009 | 2008 |
+---------------------------------------+---+---------+---------+
| | | GBP'000 | GBP'000 |
+---------------------------------------+---+---------+---------+
| Revenue | | 7,951 | 16,277 |
+---------------------------------------+---+---------+---------+
| Cost of sales | | (4,452) | (9,554) |
+---------------------------------------+---+---------+---------+
| Gross profit | | 3,499 | 6,723 |
+---------------------------------------+---+---------+---------+
| Non-trading items | | (398) | - |
+---------------------------------------+---+---------+---------+
| Amortisation of intangible assets | | | |
| acquired through business | | (1,003) | (1,141) |
| combinations | | | |
+---------------------------------------+---+---------+---------+
| Impairment of goodwill and intangible | | (9,171) | - |
| assets | | | |
+---------------------------------------+---+---------+---------+
| Other administrative expenses | | (2,382) | (4,219) |
+---------------------------------------+---+---------+---------+
| Operating (loss) / profit | | (9,455) | 1,363 |
+---------------------------------------+---+---------+---------+
| Net finance costs | | 2 | (188) |
+---------------------------------------+---+---------+---------+
| (Loss) / profit before tax | | (9,453) | 1,175 |
+---------------------------------------+---+---------+---------+
| Related income tax | | 84 | (84) |
+---------------------------------------+---+---------+---------+
| Deferred tax credit arising from | | 1,631 | - |
| intangible assets impaired | | | |
+---------------------------------------+---+---------+---------+
| Loss on sale of discontinued | | - | (5,404) |
| operations (net of tax) | | | |
+---------------------------------------+---+---------+---------+
| Loss for the period | | (7,738) | (4,313) |
+---------------------------------------+---+---------+---------+
The comparative income statement has been re-analysed to show the discontinued
operations for the Education Division separately from the continuing operations.
The cash inflow on the disposal of the French Healthcare business in 2008 after
deducting expenses and costs relating to the sale was GBP6.2 million.
5 Dividends
+---------------------------------------+---+---------+---------+
| | | 2009 | 2008 |
+---------------------------------------+---+---------+---------+
| | | GBP'000 | GBP'000 |
+---------------------------------------+---+---------+---------+
| The aggregate amount of dividends | | | |
| comprises: | | | |
+---------------------------------------+---+---------+---------+
| Final dividends paid in respect of | | | |
| the previous year but not recognised | | - | 1,140 |
| as liabilities in that year | | | |
+---------------------------------------+---+---------+---------+
6 (Loss) / Earnings per share
+-----------------------------------+-----+-------------+-------------+
| | | 2009 | 2008 |
+-----------------------------------+-----+-------------+-------------+
| | | GBP'000 | GBP'000 |
+-----------------------------------+-----+-------------+-------------+
| Loss attributable to shareholders | | (7,785) | (3,984) |
+-----------------------------------+-----+-------------+-------------+
| Add: non-trading items, net of | | 128 | 137 |
| tax | | | |
+-----------------------------------+-----+-------------+-------------+
| Add: amortisation of intangible | | | |
| assets acquired through business | | 1,349 | 1,754 |
| combinations | | | |
+-----------------------------------+-----+-------------+-------------+
| Add: results from discontinued | | 7,738 | 4,313 |
| operations | | | |
+-----------------------------------+-----+-------------+-------------+
| Less: share based payments credit | | (12) | (25) |
+-----------------------------------+-----+-------------+-------------+
| Less: profit on sale of | | - | (300) |
| subsidiary undertaking | | | |
+-----------------------------------+-----+-------------+-------------+
| Normalised profit attributable to | | 1,418 | 1,895 |
| shareholders | | | |
+-----------------------------------+-----+-------------+-------------+
| | | | |
+-----------------------------------+-----+-------------+-------------+
| | | | |
+-----------------------------------+-----+-------------+-------------+
| Weighted average number of shares | | 2009 | 2008 |
+-----------------------------------+-----+-------------+-------------+
| | | Ordinary | Ordinary |
| | | Shares | Shares |
+-----------------------------------+-----+-------------+-------------+
| | | | |
+-----------------------------------+-----+-------------+-------------+
| In issue during the year - basic | | 151,998,453 | 151,998,453 |
+-----------------------------------+-----+-------------+-------------+
| Dilutive potential ordinary | | - | 238,888 |
| shares | | | |
+-----------------------------------+-----+-------------+-------------+
| In issue during the year - | | 151,998,453 | 152,237,341 |
| diluted | | | |
+-----------------------------------+-----+-------------+-------------+
| | | | |
+-----------------------------------+-----+-------------+-------------+
| Loss per share - basic | | (5.12) | (2.62) |
| | | p | p |
+-----------------------------------+-----+-------------+-------------+
| Loss per share - diluted | | (5.12) | (2.62) |
| | | p | p |
+-----------------------------------+-----+-------------+-------------+
| | | | |
+-----------------------------------+-----+-------------+-------------+
| Normalised earnings per share (as | | 0.93 p | 1.25 p |
| above) - basic | | | |
+-----------------------------------+-----+-------------+-------------+
| Normalised earnings per share (as | | 0.93 p | 1.24 p |
| above) - diluted | | | |
+-----------------------------------+-----+-------------+-------------+
| | | | |
+-----------------------------------+-----+-------------+-------------+
| Earnings per share on continuing | | | |
| operations | | | |
+-----------------------------------+-----+-------------+-------------+
| (Loss) / earnings per share - | | (0.03) | 0.22 p |
| basic | | p | |
+-----------------------------------+-----+-------------+-------------+
| (Loss) / earnings per share - | | (0.03) | 0.22 p |
| diluted | | p | |
+-----------------------------------+-----+-------------+-------------+
7 Interest bearing loans and borrowings
+-----------------------------------+-----+---------+----------+
| | | 2009 | 2008 |
+-----------------------------------+-----+---------+----------+
| | | GBP'000 | GBP'000 |
+-----------------------------------+-----+---------+----------+
| Borrowings are repayable as | | | |
| follows: | | | |
+-----------------------------------+-----+---------+----------+
| On demand or within one year | | 2,130 | 2,130 |
+-----------------------------------+-----+---------+----------+
| Between one and two years | | 2,130 | 2,130 |
+-----------------------------------+-----+---------+----------+
| Between two and five years | | 2,750 | 4,880 |
+-----------------------------------+-----+---------+----------+
| | | 7,010 | 9,140 |
+-----------------------------------+-----+---------+----------+
| Less: Amounts due for settlement | | (2,130) | (2,130) |
| within 12 months | | | |
+-----------------------------------+-----+---------+----------+
| Amount due for settlement after | | 4,880 | 7,010 |
| 12 months | | | |
+-----------------------------------+-----+---------+----------+
+----------------+-----------------+-----------+---------+----------+
| | | | Audited | Audited |
+----------------+-----------------+-----------+---------+----------+
| | | | 2009 | 2008 |
+----------------+-----------------+-----------+---------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------+-----------------+-----------+---------+----------+
| Borrowings are | | | | |
| taken out in | | | | |
| the following | | | | |
| currencies: | | | | |
+----------------+-----------------+-----------+---------+----------+
| | Interest | Principal | | |
+----------------+-----------------+-----------+---------+----------+
| Sterling | Floating linked | GBP13,400 | 7,010 | 9,140 |
| | to LIBOR | | | |
+----------------+-----------------+-----------+---------+----------+
| Total | | | 7,010 | 9,140 |
+----------------+-----------------+-----------+---------+----------+
The weighted average interest rate paid on the bank loans was 5.8% (2008:
6.25%). The floating rates of interest expose the Group to cash flow interest
rate risk, which is mitigated by the interest rate caps into which the Group has
entered.
The sterling loans represent a GBP5,400,000 loan taken out in 2006 to finance
the acquisition of Parliamentary Monitoring Services Limited and Political
Wizard Limited, on which the last repayment is due in December 2012; and an
GBP8,000,000 loan taken out in 2006 to finance the acquisition of Letts
Educational Limited and Leckie & Leckie Limited, on which the last repayment is
due in June 2013. All loans are taken out with Bank of Scotland.
In connection with the Group's banking and borrowing facilities with the Bank of
Scotland, the Company and its UK subsidiary undertakings have entered into a
cross guarantee, which gives a fixed and floating charge over the assets of the
UK trading companies of the Group.
The Group estimates the fair value of its loans to be the same as their carrying
amount.
At 31 December 2009, the Group had available GBP2,000,000 (2008: GBP1,840,000)
of undrawn facilities under its working capital facility. Interest on amounts
drawn down under this facility is paid at 2% over base rate. The facility
expired in March 2010 and was not renegotiated.
On 19 March 2010, subsequent to the sale of the Education Division, the bank
loan of GBP7.01 million was repaid in full.
8 Analysis of net debt
+-------------------+----------+----------+------------------+----------+----------+
| | At 1 | Cash | Reclassification | Exchange | At 31 |
| | January | flow | | movement | December |
| | 2009 | | | | 2009 |
+-------------------+----------+----------+------------------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-------------------+----------+----------+------------------+----------+----------+
| Cash at bank and | 96 | 325 | - | 7 | 428 |
| in hand | | | | | |
+-------------------+----------+----------+------------------+----------+----------+
| | | | | | |
+-------------------+----------+----------+------------------+----------+----------+
| Debt due within | (2,130) | 2,130 | (2,130) | - | (2,130) |
| one year | | | | | |
+-------------------+----------+----------+------------------+----------+----------+
| Debt due after | (7,010) | - | 2,130 | - | (4,880) |
| one year | | | | | |
+-------------------+----------+----------+------------------+----------+----------+
| | (9,044) | 2,455 | - | 7 | (6,582) |
+-------------------+----------+----------+------------------+----------+----------+
Cautionary statement
This press release may contain forward-looking statements based on current
expectations or beliefs, as well as assumptions about future events. In that
regard, such statements are:
· inherently predictive and speculative and involve risk and uncertainty
because they relate to events and depend on circumstances that will occur in the
future; and
· not a guarantee of future performance and are subject to factors that
could cause the actual results to differ materially from those expressed or
implied.
The name Huveaux is a trademark of Huveaux PLC. All other trademarks mentioned
herein are the property of Huveaux's respective subsidiary companies. All rights
reserved.
The Huveaux PLC 2009 Annual Report and Financial Statements are being posted to
shareholders in May 2010 and will be available to the public upon request at the
Company's registered office: 4 Grosvenor Place, London, SW1X 7DL.
Copies of recent announcements, including this Preliminary Results announcement,
and additional information on Huveaux, can be found at www.huveauxplc.com.
Schedule A (Unaudited)
Reconciliation between operating profit and non-statutory performance measure
The following tables reconcile operating profit as stated in the income
statement to EBITDA, a non-statutory measure which the Directors believe is the
most appropriate measure in assessing the performance of the Group.
EBITDA is defined by the Directors as being earnings before interest, tax,
depreciation, amortisation of assets acquired through business combinations, and
non-trading items. Plate cost amortisation is included within cost of sales of
the Education Division as management believe this is an appropriate
classification.
+----------------+-----------+---------------+--------------+-------------+---------+
| Year ended 31 | Operating | Depreciation* | Amortisation | Non-trading | EBITDA |
| December 2009 | Profit | | and | Items** | |
| | | | impairment | | |
| | | | of | | |
| | | | intangible | | |
| | | | assets | | |
+----------------+-----------+---------------+--------------+-------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------+-----------+---------------+--------------+-------------+---------+
| Political | | | | | |
+----------------+-----------+---------------+--------------+-------------+---------+
| Political | 1,663 | 430 | 1,219 | 17 | 3,329 |
+----------------+-----------+---------------+--------------+-------------+---------+
| Learning | (107) | 17 | 130 | 76 | 116 |
+----------------+-----------+---------------+--------------+-------------+---------+
| | 1,556 | 447 | 1,349 | 93 | 3,445 |
+----------------+-----------+---------------+--------------+-------------+---------+
| Head Office | (989) | 16 | - | 73 | (900) |
+----------------+-----------+---------------+--------------+-------------+---------+
| Results from | | | | | |
| continuing | 567 | 463 | 1,349 | 166 | 2,545 |
| operations | | | | | |
+----------------+-----------+---------------+--------------+-------------+---------+
| Education | (9,455) | 119 | 10,174 | 385 | 1,223 |
| (discontinued) | | | | | |
+----------------+-----------+---------------+--------------+-------------+---------+
| | (8,888) | 582 | 11,523 | 551 | 3,768 |
+----------------+-----------+---------------+--------------+-------------+---------+
+----------------+-----------+---------------+--------------+-------------+---------+
| Year ended 31 | Operating | Depreciation* | Amortisation | Non-trading | EBITDA |
| December 2008 | Profit | | and | Items** | |
| | | | impairment | | |
| | | | of | | |
| | | | intangible | | |
| | | | assets | | |
+----------------+-----------+---------------+--------------+-------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------+-----------+---------------+--------------+-------------+---------+
| Political | | | | | |
+----------------+-----------+---------------+--------------+-------------+---------+
| Political | 1,155 | 354 | 1,262 | 53 | 2,824 |
+----------------+-----------+---------------+--------------+-------------+---------+
| Learning | (103) | 24 | 308 | 10 | 239 |
+----------------+-----------+---------------+--------------+-------------+---------+
| | 1,052 | 378 | 1,570 | 63 | 3,063 |
+----------------+-----------+---------------+--------------+-------------+---------+
| Learning | (42) | 52 | 184 | - | 194 |
+----------------+-----------+---------------+--------------+-------------+---------+
| Head Office | (860) | 22 | - | (200) | (1,038) |
+----------------+-----------+---------------+--------------+-------------+---------+
| | 150 | 452 | 1,754 | (137) | 2,219 |
+----------------+-----------+---------------+--------------+-------------+---------+
| Healthcare | 226 | - | 138 | - | 364 |
| (discontinued) | | | | | |
+----------------+-----------+---------------+--------------+-------------+---------+
| Education | 1,137 | 113 | 1,003 | 9 | 2,262 |
| (discontinued) | | | | | |
+----------------+-----------+---------------+--------------+-------------+---------+
| | 1,513 | 565 | 2,895 | (128) | 4,845 |
+----------------+-----------+---------------+--------------+-------------+---------+
* including amortisation of software shown within intangibles.
** including share based payments charges/(credits) and profit on disposal of
subsidiary undertaking.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR QKLFFBXFEBBX
1 Year Huveaux Chart |
1 Month Huveaux Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
