Impact Holdings (UK) PLC Final Results

 
TIDMIHUK 
 
Press Release 
 
1 July 2016 
 
                           Impact Holdings (UK) plc 
 
                           ("Impact" or "The Group") 
 
            Preliminary results for the year ended 31st March 2016 
 
Impact Holdings (UK) plc (AIM: IHUK), the specialist lender, announces its 
preliminary results for the year ended 31st March 2016. 
 
Financial Highlights 
 
  * Group's pre-tax loss of GBP227,823 (2015: profit GBP252,669) 
 
  * Loss per share 8.6p (2015: profit 10.0p) 
 
  * Further reduced exposure to external debt 
    providers 
  * Cash and cash equivalents of GBP0.3 million (2015: GBP1.6 million) 
 
  * Net assets of GBP5.6 million (2015: GBP5.8 million) 
 
Commenting on the results Roger Barlow, non-executive Chairman said "These 
results reflect the ongoing complex and long running litigation we are engaged 
in. We continue to de-risk the business and reduce our exposure to external 
debt providers." 
 
 
 
For further information: 
 
Impact Holdings (UK) plc. 
 
Paul Davies Chief Executive Officer                     Tel: [phone] 
550 
 
www.impactholdings.net 
 
Zeus Capital 
Nick Cowles/Andrew Jones                                   Tel [phone] 
1512 
 
 
Notes to the Editor: 
 
Impact Holdings (UK) plc through its individual subsidiaries provides financial 
outsourcing and ancillary services to the legal profession. 
 
In addition Impact will fund other opportunities where debt instruments or 
debentures provide the primary security and there are opportunities for short 
term bespoke funding where serviceability precludes larger lenders from 
entering this area. 
 
Impact is regulated by the Office of Fair Trading through which it is licensed 
to lend under the Consumer Credit Act 1974. 
 
The financial information detailed below has been extracted from the Annual 
Report and Accounts for the year ended 31st March 2016, which are available 
from Zeus Capital, 82 King Street, Manchester, M2 4WQ and on the Company's 
website (www.impactholdings.net). 
 
CHAIRMAN'S STATEMENT 
 
INTRODUCTION 
 
The recognition of revenue, normally generated from loans to clients of 
solicitor firms, has (as previously announced) been suspended pending the 
outcome of a hearing in the Supreme Court that was heard on 30 June 2016. The 
Directors and their legal team remain confident that the Appeal Court decision 
handed down in February 2015 will be upheld by the Supreme Court which would 
result in further recoveries thereafter from a number of professional indemnity 
insurers of those solicitor firms who have defaulted on the loans advanced. 
 
THE BOARD 
 
The Board remains committed to adhering to strong Corporate Governance and 
operating within a framework of prudent controls which ensures the future risks 
of the business are controlled and managed. 
 
 
STRATEGY 
 
The development of the strategic direction of the business has continued in 
this financial year with a further reduction in our exposure to third party 
funders. This peaked at GBP10.0m in March 2010 and now stands at GBP1.0m as at 31 
March 2016. 
 
OUTLOOK 
 
The group remains focused on recovering monies owed to it by third parties. The 
Board of Directors is committed to the opportunities identified and continues 
to develop this strategy which is expected to provide, over time, enhanced 
shareholder value. 
 
The dedication and commitment of all staff to re-align the business is a credit 
as they have collectively worked with commitment and resilience to deliver this 
performance. 
 
I would like to place on record my appreciation for the efforts of the 
executive, management and staff during the year. I also appreciate the 
enthusiasm and support of my fellow directors and thank them for their 
continued encouragement and counsel. 
 
Roger Barlow 
Non-executive Chairman 
 
 
 
CONSOLIDATED INCOME STATEMENT FOR THE YEARED 31 MARCH 2016 
 
                                                                  Year                   Year 
 
                                                                 ended                  Ended 
 
                                                            31/03/2016             31/03/2015 
 
                                                                     GBP                      GBP 
 
Revenue                                                        406,547              1,988,087 
 
Cost of sales                                                 (30,818)              (467,606) 
 
Gross profit                                                   375,729              1,520,481 
 
Operating expenses                                           (603,552)            (1,267,812) 
 
(Loss)/profit for the year from operations                   (227,823)                252,669 
before tax 
 
Tax                                                             22,678               (10,904) 
 
(Loss)/profit for the year                                   (250,501)                263,573 
attributable to the owners of the 
parent 
 
(Loss)/Earnings per share (pence)                               (8.6p)                  10.0p 
Basic                                                                                    8.3p 
Diluted                                                         (7.2p) 
 
Other than as disclosed in the consolidated Income Statement and the 
Consolidated Statement of Changes in Equity there are no further gains or 
losses. Accordingly, no separate statement of Other Comprehensive Income has 
been presented. 
 
All activities are considered to be continuing. 
 
 
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2016 
 
                                                                       2016       2015 
 
                                                                          GBP          GBP 
 
Non-current assets 
 
Goodwill                                                            421,766    421,766 
 
Investments                                                             364          - 
Property, plant and equipment                                         3,257    882,397 
 
Deferred taxation                                                   181,074    181,074 
                                                                    606,461  1,485,237 
 
Current assets 
 
Trade and other receivables including amounts 
falling due after more than one year                              5,135,618  4,451,612 
 
Non-current assets classified as held for                           990,000          - 
sale                                                                331,005  1,604,945 
Cash and cash equivalents 
 
                                                                  6,456,623  6,056,557 
 
Total assets                                                      7,063,084  7,541,794 
 
Equity and liabilities 
 
Share capital 
                                               1,311,201        1,311,201 
 
Shares held by Employee Benefit Trust 
                                   (45,070)           (45,070) 
 
Retained earnings 
                                           4,346,395        4,574,218 
 
Issued capital and reserves attributable to parent 
          5,612,526         5,840,349 
 
Trade and other payables due after more than one year 
                             450,404           481,782 
 
Trade and other payables due in less than one year 
                             1,000,154         1,219,663 
 
Total equity and liabilities 
                                7,063,084         7,541,794 
 
These financial statements were approved by the board on 30 June 2016 
 
 
 
 
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEARED 31 MARCH 2016 
 
                                                                    2016           2015 
 
                                                                       GBP              GBP 
 
 
Operating activities 
 
Cash generated by operations                                 (1,009,721)      1,278,528 
 
 
Net cash generated by operating activities                   (1,009,721)      1,278,528 
 
Investing activities 
 
 
Interest received                                                      -             25 
 
Sale of assets                                                     2,183              - 
Purchase of investments                                            (364)              - 
Revaluation of property                                        (136,469)              - 
Purchases of property, plant and equipment                       (3,661)          (783) 
 
Net cash used in investing activities                          (138,311)          (758) 
 
Financing activities 
 
Net decrease in other amounts owed to lending                  (125,908)      (365,510) 
institutions 
 
Net cash outflow from financing activities                     (125,908)      (365,510) 
 
 
Net (decrease)/increase in cash and cash                     (1,273,940)        912,260 
equivalents 
 
Cash and cash equivalents at 1 April                           1,604,945        692,685 
 
Cash and cash equivalents at 31 March                            331,005      1,604,945 
 
 
 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 31 MARCH 2016 
 
                                  Share   Shares    Share Profit and     Total 
                                capital  held by  options       loss 
                                                             account 
 
                                             EBT 
 
                                      GBP        GBP        GBP          GBP         GBP 
 
Balance as at 31 March 2014   1,311,201 (45,070)   39,349  4,271,296 5,576,776 
 
Net profit for the year               -        -        -    263,573   263,573 
 
Balance as at 31 March 2015   1,311,201 (45,070)   39,349  4,534,869 5,840,349 
 
Net loss for the year                 -        -        -  (227,823) (227,823) 
 
Balance as at 31 March 2016   1,311,201 (45,070)   39,349  4,307,046 5,612,526 
 
Notes 
 
1.   The financial information set out in this announcement does not constitute 

the group's financial statements (as defined by s434 of the Companies Act 2006) 
for the year ended 31st March 2016. The results for the year ended 31st March 
2016 are extracted from the Annual Report of Impact Holdings (UK) plc, on which 
the auditors have issued an unqualified report which includes an emphasis of 
matter. 
 
2.   Pursuant to AIM Rule 20 copies of the Annual Report may be downloaded from 
the company's web site www.impactholdings.netand will be posted to shareholders 
shortly. Further copies will be available from Zeus Capital, 82 King Street, 
Manchester, M2 4WQ. 
 
3.   Two of the group's subsidiary companies continue to pursue litigation 
against a number of solicitor practices and professional indemnity insurers. In 
one of those actions the Appeal Court overturned a lower Court decision in 
favour of Impact Funding Solutions Limited on 3 February 2015 which resulted in 
the payment of GBP986,515 by the defendant's insurers to that company. The 
defendant's insurer made Application for Leave to Appeal to the Supreme Court 
which was granted on 20 May 2015. The matter was heard by the Supreme Court on 
30 June 2016 and we await its decision. Whilst the subsidiary company's legal 
team and leading Counsel remain confident that the Appeal Court decision will 
be upheld, there remains a possibility that the Supreme Court could overturn 
the Appeal Court decision which would result in the aforementioned monies being 
returned to the defendant. No provision has been made for this in these 
financial statements. 
 
4.   The Annual General Meeting will be held at the Company's registered 
office, 7500 Daresbury Park, Daresbury, Warrington WA4 4BS on 20 September 2016 
at 8.45am. 
 
 
 
END 
 

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July 01, 2016 02:00 ET (06:00 GMT)