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IHUK Impact Holdings

45.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Impact Holdings LSE:IHUK London Ordinary Share GB00B3DFYL18 ORD 50P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 45.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Impact Holdings (UK) PLC Interim Results

18/12/2015 7:00am

UK Regulatory


 
TIDMIHUK 
 
Impact Holdings (UK) plc 
                           ("Impact" or "The Group") 
 
                               Half Year Results 
 
Impact (AIM: IHUK), the specialist lender, announces its unaudited half year 
results for the six months ended 30 September 2015. 
 
Financial Highlights 
 
  * Cash and cash equivalents of GBP0.79 million (GBP0.63 million 30 September 
    2014) 
 
  * Net assets of GBP5.59 million (GBP5.34 million 30 September 2014) 
 
  * Debt reduced by 14% year on year to GBP1.04 million (GBP1.22 million September 
    2014) 
 
  * Loss after tax of GBP248,582 (Loss after tax GBP234,933 30 September 2014) 
 
  * Earnings/(loss) per share (9.4p)  ((8.9p) 30 September 2014) 
 
Operational Highlights 
 
  * Ongoing business re-aligned to focus on recoveries from third parties 
 
  * Continued reduction in borrowings from financial institutions 
 
  * Continuation of complex litigation 
 
A copy of the half year results is also available on the Group's website 
(www.impactholdings.net). 
 
For further information: 
 
Impact Holdings (UK) plc 
Paul Davies, Chief Executive Officer                  Tel: 01928 793 550 
 
Zeus Capital 
Andrew Jones / Nick Cowles                              Tel: 0161 831 1512 
 
 CHAIRMAN'S STATEMENT 
 
I report on our unaudited half year financial results for the six months ended 
30th September 2015. Revenue of GBP86,288 and pre-tax losses of GBP248,582 were in 
line with expectations. 
 
The recognition of revenue, normally generated from loans to clients of 
solicitor firms, has been suspended pending the outcome of a hearing in the 
Supreme Court to be heard in 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. 
 
BUSINESS OVERVIEW 
 
The development of the strategic direction of the business has continued with a 
reduction in our exposure to third party funders and a withdrawal from new 
exposures in the specialty funding market. 
 
We continue to incur upfront legal expenses in seeking to recover loans which 
have been previously provided against by the Group. Litigated matters continue 
to be concluded successfully however the ongoing costs of the more complex 
litigation matters continue to erode positive financial results. 
 
We have recently settled one litigated claim against a firm of former 
professional advisors on advantageous terms and are currently awaiting the 
Supreme Court's decision which may accelerate settlement of a number of matters 
being pursued. 
 
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. 
 
Roger Barlow 
Non-Executive Chairman 
 
 
IMPACT HOLDINGS (UK) PLC 
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
                                          6 Months      6 Months           Year 
 
                                             ended         ended          Ended 
 
                                        30/09/2015    30/09/2014     31/03/2015 
 
                                           GBP             GBP             GBP 
 
Revenue                                     86,288       906,376      1,988,087 
 
Cost of Sales                             (15,727)     (376,397)      (467,606) 
 
Gross profit                                70,561       529,979      1,520,481 
 
                                         (319,145)     (764,920)    (1,267,812) 
Operating expenses 
 
Operating (loss)/profit                  (248,584)     (234,941)        252,669 
 
Interest receivable                              2             8              - 
 
 
(Loss)/profit for the period from 
 
operations before tax                    (248,582)     (234,933)        252,669 
 
                                                 -             -       (10,904) 
Tax 
 
(Loss)/Profit for the period             (248,582)     (234,933)        263,573 
 
(Loss)/earnings per share (pence) 
 
Basic                                       (9.4)p        (8.9)p          10.0p 
Fully Diluted                               (8.1)p        (7.7)p           8.3p 
 
IMPACT HOLDINGS (UK) PLC 
UNAUDITED CONSOLIDATED BALANCE SHEET 
 
                                           As at         As at         As at 
 
                                        30/09/2015    30/09/2014    31/03/2015 
                                             GBP             GBP             GBP 
 
 
 
Non-current assets 
 
Goodwill                                     421,766       421,766       421,766 
 
Property, plant and equipment                866,463       922,024       882,397 
 
Deferred taxation                            181,703       171,902       181,074 
 
Current assets                             1,469,932     1,493,722     1,485,237 
 
Trade and other receivables 
 
including amounts falling 
 
due after more than one                    4,740,741     5,363,700     4,451,612 
year 
 
Cash and cash equivalents                    790,004       635,866     1,604,945 
 
                                           5,530,745     5,999,566     6,056,557 
 
Total assets                               7,000,677     7,493,288     7,541,794 
 
Capital and reserves 
 
Share capital                              1,311,201     1,311,201     1,311,201 
 
Shares held by Employee Benefit Trust       (45,070)      (45,070)      (45,070) 
 
Retained earnings                          4,325,636     4,075,955     4,574,218 
 
Equity attributable to                     5,591,767     5,342,086     5,840,349 
equity shareholders of the 
parent 
 
Trade and other payables due after 
more 
 
 than one year                               467,376       540,329       481,782 
 
Trade and other payables due in less 
 
 than one year                               941,534     1,610,873     1,219,663 
 
                                           7,000,677     7,493,288     7,541,794 
 
IMPACT HOLDINGS (UK) PLC 
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD 
 
                                                 6 Months      6 Months           Year 
 
                                                    ended         ended          Ended 
 
                                               30/09/2015    30/09/2014     31/03/2015 
                                                        GBP             GBP              GBP 
 
Operating activities 
 
Cash (used in)/generated from                  ( 700,537)       244,246      1,278,528 
operations 
 
Net cash generated by operating                 (700,537)       244,246      1,278,528 
activities 
 
Investing activities 
 
Purchase of property, plant and equipment               -             -          (783) 
 
Interest received                                       2             8             25 
 
Net cash in investing activities 
                                                        2             8          (758) 
 
Financing Activities 
 
 
Net decrease in amounts owed to 
lending institutions                            (114,406)     (301,073)      (365,510) 
 
Net cash outflow from financing                 (114,406)     (301,073)      (365,510) 
activities 
 
Net (decrease)/increase in 
 
cash and cash equivalents                       (814,941)      (56,819)        912,260 
 
                                                1,604,945       692,685        692,685 
Opening cash and cash equivalents 
 
                                                  790,004       635,866      1,604,945 
Closing cash and cash equivalents 
 
IMPACT HOLDINGS (UK) PLC 
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
                                       Attributable to the equity holders of parent 
                                                         company 
 
                                      Share     Shares   Share   Profit and   Total 
 
                                     Capital   held by  options     loss 
 
                                                 EBT              account 
 
                                        GBP         GBP        GBP         GBP          GBP 
 
Balance as at 31 March               1,311,201 (45,070)   39,349  4,271,296  5,576,776 
2014 
 
Profit for the                               -        -        -    263,573    263,573 
year 
 
Balance as at 31 March               1,311,201 (45,070)   39,349  4,534,869  5,840,349 
2015 
 
Net (loss) for the period                    -        -        -  (248,582)  (248,582) 
 
Balance as at 30 September 2015      1,311,201 (45,070)   39,349  4,286,287  5,591,767 
 
Notes to the Interim Financial Statements 
 
1. Accounting policies 
 
This half-year report for the period ended 30 September 2015 has been prepared 
on the basis of the accounting policies set out in Impact Holdings (UK) plc's 
annual report and financial statements 2015 and in accordance with the 
International Financial Reporting Standards as adopted by the European Union 
and IAS34, 'Interim financial reporting'. 
 
The half-year report does not constitute statutory financial statements as 
defined in section 434 of the Companies Act 2006. 
 
It does not include all of the information and disclosures required for full 
annual financial statements, and should be read in conjunction with the annual 
report and financial statements for the year ended 31 March 2015. 
 
The financial information contained in this half-year report in respect of the 
year ended 31 March 2015 has been produced from the annual report and financial 
statements for that year which have been filed with the Registrar of Companies. 
 
The financial statements have been prepared on the historical cost basis, 
except for the valuation of financial assets and liabilities. The principal 

(MORE TO FOLLOW) Dow Jones Newswires

December 18, 2015 02:00 ET (07:00 GMT)

accounting policies adopted are set out below. 
 
The financial statements have been prepared on a going concern basis. 
 
New and revised accounting standards 
 
At the date of issue of these financial statements, the following accounting 
Standards and Interpretations, which have not been applied, were in issue but 
not yet effective. The directors do not anticipate that adoption of these will 
have a material impact on the financial statements. 
 
IFRS 9                                                     Financial 
Instruments 
 
IFRS14                                                    Regulatory Deferral 
Accounts 
 
IFRS15                                                    Revenue from 
Contracts with Customers 
 
The effect of changes on the group's financial statements as a result of 
adopting these standards (where applicable) is not significant. The group has 
elected not to adopt any other standards earlier than the proposed effective 
dates. 
 
Further detail in relation to the above International Accounting Standards is 
available from the IASB's website, www.iasb.org. 
 
Basis of consolidation 
 
The consolidated financial statements of the group incorporate the financial 
statements of the company and enterprises controlled by the company (its 
subsidiaries) made up to the balance sheet date. Control is achieved where the 
company has the power to govern the financial and operating policies of an 
investee enterprise so as to obtain economic benefit from its activities. 
Subsidiaries are fully consolidated from the effective date of acquisition or 
up to the effective date of disposal, as appropriate. 
 
The acquisition method of accounting is used to account for the acquisition of 
subsidiaries by the group. The cost of an acquisition is measured as the fair 
value of the assets given, equity instruments issued and liabilities incurred 
or assumed at the date of exchange, plus costs directly attributable to the 
acquisition. Identifiable assets acquired and liabilities and contingent 
liabilities assumed in a business combination are initially measured at fair 
value at the acquisition date irrespective of the extent of any minority 
interest. 
 
The excess of cost of acquisition over the fair values of the group's share of 
identifiable net assets acquired is recognised as goodwill. Any deficiency of 
the cost of acquisition below the fair value of identifiable net assets 
acquired (i.e. discount on acquisition) is recognised directly in the income 
statement. 
 
Where necessary, adjustments are made to the financial statements of 
subsidiaries to bring the accounting policies used into line with those used by 
other members of the Group. All intra-group transactions, balances, and 
unrealised gains on transactions between Group companies are eliminated on 
consolidation. Unrealised losses are also eliminated unless the transaction 
provides evidence of an impairment of the asset transferred. 
 
Goodwill 
 
Goodwill arising on consolidation represents the excess of the cost of 
acquisition over the Group's interest in the fair value of the identifiable 
assets and liabilities of a subsidiary, associate or jointly controlled entity 
at the date of acquisition. Goodwill on acquisition of subsidiaries is 
separately disclosed. 
 
Goodwill is recognised as an asset and reviewed for impairment semi-annually or 
on such other occasions that events or changes in circumstances indicate that 
it might be impaired. Any impairment is recognised immediately in the income 
statement and is not subsequently reversed. Goodwill is allocated to cash 
generating units for the purpose of impairment testing. 
 
Goodwill arising on acquisitions before the date of transition to IFRS has been 
retained at the previous UK GAAP amounts subject to being tested for 
impairment. 
 
Intangible assets 
 
The cost of developing or acquiring computer software including own labour 
costs incurred directly in connection with software development, is capitalised 
as an intangible asset where the related expenditure is separately identifiable 
and where there is reasonable expectation that future economic benefits will 
arise from the development. Software costs are amortised using the straight 
line method over 3 years. The amortisation charge is included within operating 
expenses. Intellectual property and computer development is fully written off 
in the period it is incurred. 
 
Interest income and expense 
 
Revenue shown in the profit and loss account represents interest, commission 
and arrangement fees receivable on loans made to third parties. Interest income 
and expense are recognised in the profit and loss account for all financial 
assets and liabilities using the effective interest method, being the rate that 
exactly discounts estimated future cash payments or receipts through the 
expected life of the financial instrument to the net carrying amount of the 
financial asset or financial liability. When calculating the effective interest 
rate, the Group includes all establishment and arrangement fees, commissions 
and administrative fees paid or received between parties to the contract that 
are an integral part of the effective interest rate. 
 
Interest on legal disbursement funding is added to the principal, is calculated 
on a daily basis and is repaid to the group at the end of the term of the 
agreement. 
 
Financial assets and liabilities 
 
Financial assets and liabilities used by the Group include loans made to third 
parties and debt finance received by the Group. Financial assets are recognised 
initially at fair value and measured subsequently at amortised cost using the 
effective interest method, less provision for impairment. Financial liabilities 
are recognised initially at fair value and measured subsequently at amortised 
cost. 
 
Bad and doubtful debts 
 
Specific provision is made against all advances considered to be impaired. When 
there is reasonable doubt over recovery, provision is made against the 
outstanding debt including interest and further interest is suspended until the 
directors are satisfied as to the recoverability of the total amount due. 
 
Segmental reporting 
 
No separate segmental reporting information is provided as in the directors' 
opinion there are no material segments other than the provision of short term 
niche funding solutions. 
 
Leasing 
 
Rentals payable under operating leases are charged to income on a straight line 
basis over the term of the lease. 
 
Retirement benefits costs 
 
Payments to defined contribution retirement benefit plans are charged as an 
expense as they fall due. 
 
Taxation 
 
The tax expense represents the sum of the current tax expense and deferred tax 
expense. 
 
The tax currently payable is based on taxable profit or loss for the year. 
Taxable profit or loss differs from net profit as reported in the income 
statement because it excludes items of income or expense that are taxable or 
deductible in other years and it further excludes items that are never taxable 
or deductible. The Group's liability for current tax is calculated by using tax 
rates that have been enacted or substantively enacted by the balance sheet 
date. 
 
Deferred tax is the tax expected to be payable or recoverable on differences 
between the carrying amount of assets and liabilities in the financial 
statements and the corresponding tax bases used in the computation of taxable 
profit, and is accounted for using the balance sheet liability method. Deferred 
tax liabilities are recognised for all taxable temporary differences and 
deferred tax assets are recognised to the extent that it is probable that 
taxable profits will be available against which deductible temporary 
differences can be utilised. Such assets and liabilities are not recognised if 
the temporary difference arises from the initial recognition of goodwill or 
from the initial recognition (other than in a business combination) of other 
assets and liabilities in a transaction which affects neither the tax profit 
nor the accounting profit. 
 
Deferred tax liabilities are recognised for taxable temporary differences 
arising on investments in subsidiaries and associates, and interests in joint 
ventures, except where the Group is able to control the reversal of the 
temporary difference and it is probable that the temporary difference will not 
reverse in the foreseeable future. 
 
Deferred tax is calculated at the tax rates that are expected to apply to the 
period when the asset is realised or the liability is settled based upon tax 
rates that have been enacted or substantively enacted by the balance sheet 
date. Deferred tax is charged or credited in the income statement, except when 
it relates to items credited or charged directly to equity, in which case the 
deferred tax is also dealt with in equity. 
 
Property, plant and equipment 
 
Fixtures and equipment are stated at cost less accumulated depreciation. 
Depreciation is charged so as to write off the cost or valuation of assets over 
their useful economics lives, using the straight line method on the following 
basis:- 
 
Plant and machinery - 3 years 
 
Fixtures, fittings & equipment - 3 years 
 
The directors consider that the freehold properties are maintained in such a 
state of repair that its residual value is at least equal to their original 
cost. Accordingly, no depreciation is charged on the grounds of immateriality. 
Annual impairment reviews are undertaken and provisions made at the end of each 
reporting period where necessary. 
 
Equity Instruments 
 
Equity instruments, which are contracts that evidence a residual interest in 
the assets of the group after deducting all of its liabilities, are recorded at 
the proceeds received, net of direct issue costs. 
 
 Provisions 
 
Provisions are recognised when the group has a present obligation as a result 
of a past event which it is probable will result in an outflow of economic 
benefits that can be reliably estimated. 
 
Share-based payments 
 
Equity-settled share-based payments are measured at fair value at the date of 

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