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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| India Out. | LSE:IOS | London | Ordinary Share | GB00B0YTNL47 | 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% | 13.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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RNS Number:0168U
India Outsourcing Services PLC
29 March 2007
For immediate release 29 March 2007
INDIA OUTSOURCING SERVICES PLC
('India Outsourcing' or 'the Company')
Preliminary Results for the period ended 30 September 2006
India Outsourcing Services plc (AIM: IOS), a company formed to capitalise on
acquisition and investment opportunities in the business process outsourcing
(BPO) industry, is pleased to announce its preliminary results for the period
ended 30 September 2006.
Highlights
Owing to the rising valuations of BPO companies in India, the Company has
decided to broaden its strategy and to seek appropriate acquisitions in
geographies including the US and Europe
Global growth of the BPO market is continuing at an impressive rate, reinforcing
the Company's confidence in the choice of the BPO market as the focus of its
acquisition and investment activities
The Company has continued to exercise careful cost control, reporting net cash
of #2.76 million at 30 September 2006 (30 September 2005: #0.36 million)
Net loss in the period of #875,555 (2005: net loss of #424,369) and loss per
share of 14.1p (2005: loss of 34.8p)
Amit Pau, Chief Executive of India Outsourcing Services, commented: "Whilst it
is disappointing that the expectations of the vendors of many potential target
companies in India have moved to a degree that makes acquisitions unrealistic,
we continue to believe that the BPO market is the ideal focus for our
acquisition and investment activities. We are therefore broadening our search
for potential targets to geographies outside of India, including the USA and
Europe."
For further information:
India Outsourcing Services plc Tel: 020 7297 0010
Haresh Kanabar, Chairman
Amit Pau, Chief Executive
Teather & Greenwood Ltd Tel: 020 7426 9000
Mark Dickenson
Sindre Ottesen
Buchanan Communications Tel: 020 7466 5000
Mark Court
Extracts from the Chairman's statement and the report of the directors
I am pleased to report India Outsourcing Services' financial results for the
year ended 30 September 2006. The period under review has in many ways been
challenging but we enter the current year with a sound appreciation of the
Indian Business Process Outsourcing (BPO) market and a revised strategy to
ensure the delivery of our first acquisition as soon as practicably possible.
The company's financial performance in the year was in line with management
expectations. The post tax loss in the year was #875,555 compared with a loss of
#424,369 for the 13 months period ending September 2005 and the loss per share
has been reduced to 14.1p compared with 34.8p in the corresponding period the
loss per share has been reduced due to share issue. More than half of the loss
incurred is due to the due diligence costs of an aborted transaction. The
Company's net cash as at 30 September 2006 was #2.76 million.
In March 2006 the Company raised #3 million gross by placing 6,666,667 shares at
a price of 45p. At the same time the Company's shares were consolidated one
share for every ten shares held. Also in March the Company raised a further
#500,000 from Wheddon Limited who is a strategic investor in the company by
placing 1,000,000 shares at a price of 50p per share.
India Outsourcing floated on AIM with the strategy of seeking, evaluating and
completing the acquisition of companies in the Business Process Outsourcing
(BPO) industry primarily in India. The BPO industry has grown quite
substantially over the past few years and is expected to continue to grow
strongly in the coming years.
During the year we pursued in detail an acquisition by commissioning full legal
accounting and commercial due diligence on a support services company operating
within the US healthcare sector with a delivery facilities in the US and in
India . However, after a very lengthy process, and in consultation with our
advisers, we decided to abandon pursuit of the acquisition. Whilst, obviously,
we are determined to complete our first acquisition as soon as practicable we
are only prepared to entertain an acquisition if it offers a very clear
opportunity to enhance shareholder value. It does not make sense to do a
transaction at valuations that reduce the returns for our shareholders.
The BPO market continues to grow steadily and is a very exciting sector in which
to be involved. However, we have seen that valuation expectations from vendors,
particularly in India, are quite high and verging on the unrealistic. This
environment will make it very challenging for us to achieve our stated strategy
of BPO acquisitions in India. Therefore we are now also looking at acquisitions
in Europe and the USA.
Outlook
Whilst BPO is an exciting and growing sector in which to be involved, valuations
particularly in India are becoming stretched. It is increasingly hard to find
the type of value enhancing transaction in India that we require and we are
therefore expanding our search for acquisitions to wider geographies.
Results and dividends
The profit and loss account is set out above and shows the loss for the year.
The directors do not recommend the payment of a dividend for the year.
Principal activities, trading review and future developments
The principal activity of the company is to capitalise on acquisition and
investment opportunities within the Business Process Outsourcing sector
primarily in India.
India Outsourcing Services Plc
Profit and Loss Account for the year ended 30 September 2006
Notes Year 13 month period
ended ended
30 September 30 September
2006 2005
# #
Administrative expenses 960,459 432,503
Operating loss (960,459) (432,503)
Net interest receivable 84,904 8,134
Loss on ordinary activities before taxation (875,555) (424,369)
Tax on loss on ordinary activities - -
Loss for the financial year (875,555) (424,369)
Loss per share-basic and diluted 2 (14.1)p (34.8)p
All amounts relate to continuing activities.
All recognised gains and losses for the year ended have been included in the
profit and loss account.
India Outsourcing Services Plc
Balance sheet as at 30 September 2006
2006 2005
# #
Fixed assets
Tangible assets 1,141 4,078
1,141 4,078
Current assets
Debtors 24,404 5,037
Cash at bank and in hand 2,800,000 359,795
2,824,404 364,832
Creditors: amounts falling due within one year (186,777) (106,015)
Net current assets 2,637,627 258,817
Net assets 2,638,768 262,895
Capital and reserves
Called up share capital 947,917 181,250
Share premium account 2,990,775 506,014
Profit and loss account (1,299,924) (424,369)
Shareholders' funds 2,638,768 262,895
India Outsourcing Services Plc
Cash Flow Statement for the year ended 30 September 2006
Year 13 month period
ended ended
30 September 30 September
2006 2005
# #
Net cash outflow from operating activities (933,272) (329,729)
Returns on investments and servicing of finance
Interest received 84,904 8,134
Net cash inflow from returns on investments and servicing of 84,904 8,134
finance
Capital expenditure
Purchase of tangible fixed assets - (5,874)
Net cash outflow for capital expenditure - (5,874)
Net cash outflow before financing (848,368) (327,469)
Financing
Issue of ordinary shares 3,500,000 800,000
Expenses paid in connection with share issues (248,572) (112,736)
Cash inflow from financing 3,251,428 687,264
Increase in net cash 2,403,060 359,795
India Outsourcing Services Plc
1 Accounting policies
Basis of preparation
The results have been prepared using accounting policies consistent with those
used in the preparation of the statutory accounts. The financial information is
derived from the financial statements for the Year ended 30 September 2006,and
does not constitute full accounts within the meaning of Section 240 of the
Companies Act 1985. The financial statements on which the auditors have given an
unqualified report do not contain a statement under Section 237 (2) or (3) of
the Companies Act and will be delivered to the Registrar of Companies in due
course.
The financial statements have been prepared under the historical cost convention
and in accordance with the United Kingdom, Generally Accepted Accounting
Practice.
2 Loss per share
The calculation of loss per share of 14.1 pence (2005 - 34.8 pence) is based on
the loss for the year of #875,555 (2005 - #424,369) and on the weighted average
number of ordinary shares in issue during the year of 6,197,116 (2005 -
1,221,156).
Due to the loss in the year the effect of all potential ordinary shares is
considered to be antidilutive.
The loss per share in the prior year has been restated as a result of share
consolidation..
The Annual Report will be sent to all shareholders. Additional copies are
available from 22 Soho Square, London W1D 4NS.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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