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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Invu | LSE:INVU | London | Ordinary Share | GB00B28Y2K12 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.35 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMINVU
RNS Number : 1529T
Invu plc
23 September 2010
23 September 2010
Invu PLC
Interim Results for the six months ended 31 July 2010
Invu PLC (INVU.L, the 'Group' or the 'Company'), the document management
software provider, announces its interim results for the six months period ended
31 July 2010 (H1 2011).
Key Financial Points
· Revenue GBP1.3m (H1 2010: GBP1.2m)
· Operating loss GBP0.4m (H1 2010: GBP1.6m before exceptional cost of GBP1m)
o EBITDA loss of GBP0.2m (H1 2010: Loss before exceptional cost GBP1.2m)
· Operating cash consumption GBP0.1m (H1 2010: GBP0.5m)
Commercial Highlights
· White label agreement with IRIS
· Launch of Invu Capture, powered by ABBYY
· Launch of Invu Content Automation in alliance with Objectif Lune
· Launch of Invu for SharePoint
Colin Gallick, Chief Executive Officer of Invu, commented:
"The business has performed in line with our internal budgets for the first half
of the year and we anticipate that this performance will continue into the
second half which should see us achieve our internal target of monthly EBITDA
breakeven by the end of this financial year."
+--------------------+--------------------+
| Enquiries: | |
| | |
| Invu Plc | 01604 859893 |
+--------------------+--------------------+
| Colin Gallick, CEO |
+-----------------------------------------+
| Ian Smith, CFO |
+-----------------------------------------+
| |
+-----------------------------------------+
| Canaccord Genuity | 020 7050 6500 |
| | |
+--------------------+--------------------+
| Simon Bridges | |
+--------------------+--------------------+
| | |
+--------------------+--------------------+
| Financial Dynamics | 020 7831 3113 |
| | |
+--------------------+--------------------+
| Juliet Clarke/Haya Herbert-Burns/Emma |
| Appleton |
+--------------------+--------------------+
About Invu
Invu [LSE, AIM, Symbol: INVU] develops software that incorporates document
management, content management, workflow, automation and collaboration
specialising in solutions for the mid-market and smaller businesses.
Also known as the paperless office, Invu typically gives a return on investment
in under six months, allowing companies to see efficiency savings in terms of
both money and time.
Invu's Open Search integration allows SharePoint users to utilise fully the
benefits of WSS or MOSS whilst retaining the functions of specialist document
and content management.
Invu's solutions enable automated scan, capture and management, processing and
output transformation. Invu also integrates with all major accounting systems
including ERP and CRM systems.
For more information about Invu: www.invu.net
Chairman's Statement
In December 2009, when the business made a significant adjustment to its cost
base, the Board set the management team the priority of getting the Group back
to monthly cash flow break even by the end of the financial year ending 31
January 2011. These results covering the first six months of the year represent
significant progress towards that goal.
Following the strategic and operational changes we have made to the business, it
is now under sound financial control, with revenues, costs and cash flow during
this first half year in line with the Group's internal budgets.
Market conditions remain tough and although both the channel development and
product improvements addressed in the Chief Executive's statement are reasons to
be positive in the long term, there is no reason for the Board to reconsider its
prudent view of the short term opportunities.
As has been well documented, Invu has made significant and necessary changes to
its Board and executive management team during the last year. This six month
period represents Invu's first reporting period where the new and established
team has been responsible for the business throughout the reporting period. The
addition of Mark Wells, as a non executive member of the Board, has helped to
improve our governance and our additions to the management team, both at
executive director and senior management levels, have made a significant
contribution to the professional management of the business and in executing on
the programme set out to redress the business and drive it forward.
Our employees have responded well to the challenge of maintaining and growing
the business while consuming fewer resources. Our progress to date is a
testament to their abilities and dedication.
Daniel Goldman
Non Executive Chairman
23 September 2010
Chief Executive's Statement
We are pleased with the progress we have made in the first half of this
financial year. Continuing it is critical to both our short term plans to get
back to cash flow break even by the end of this financial year and to
profitability in future years.
Invu remains focussed on cash generation and therefore we consider the Company's
measure of EBITDA (earnings before interest, tax, depreciation, amortisation,
share option expenses and exceptional costs) to be a key business metric. In the
period, we achieved a significant improvement in EBITDA, reporting a reduced
loss of GBP0.2m compared to: GBP1.2 m in H1 2010.
There has been a considerable improvement in productivity in the period. This
was represented by an improvement in revenue up 6.8% at GBP1.26m (H1 2010:
GBP1.18m), from a much decreased (41% lower) operating cost base (cost of sales
plus administrative expenses) which demonstrates that we have made a
significantly better use of our resources than in prior periods. This
improvement sets out our challenge for the future as our scope for reducing
overhead costs is diminishing and so our emphasis must be on utilising our
existing resources to grow revenues.
To achieve this, revenue growth, we need to continue to focus on five key areas.
Re-engage with successful partners
The rationalisation of the partner base from 200 to 50 partners achieved last
year has made a significant contribution to the improvement in productivity
mentioned above and has resulted in a more stable revenue stream.
Dominate existing verticals
The accountancy market has been our most significant vertical market for a
number of reporting periods. We expect the new white label relationship with
IRIS announced in April 2010 to further strengthen our position in this market.
The agreement was made late in the period, however early results are
significantly beyond management's expectations.
Attack new verticals
We identified Housing Associations as another important vertical market in our
annual report and we have continued to develop our presence in this market with
Housing Associations representing 27% of new business in the first half compared
to 2% last year.
Extend into the "M" of SME
During the half, we announced relationships with ABBYY (17 March 2010) and
Objectif Lune (29 March 2010) which allowed us to offer their document capture
and content automation software as part of our product suite, enabling us to
continue to develop our customer base in the "M" sector of the Small and Medium
Sized business market.
We also announced (13 May 2010) Invu for SharePoint which integrates with both
Microsoft SharePoint 2007 and the new SharePoint 2010 editions. Invu for
SharePoint brings Invu's capture, management and discovery capabilities together
with SharePoint collaboration for wider business visibility and corporate
awareness.
In addition, Invu announced a partner relationship with Pillar Solutions a
leading European distributor of advanced Windows based software tools on 20
April 2010, as part of our ongoing strategy to address medium sized customers.
During the period, we began negotiations with a number of Microsoft Gold
partners and we expect some of these to come to a successful conclusion in the
second half.
Return to market-driven innovation
The continuing stability of the Series 6 software has resulted in us spending
less time on maintenance and more time on innovation.
We announced Invu version 6.2c of our Series 6 document management software on
30th April 2010. This version includes: document tracking, improved search
capabilities, improvements for system administrators and improvements to audit
logging.
We continue to have a significant customer base using our Series 5 document
management software. When the Series 6 software was launched it was envisaged
that Series 5 customers would migrate to it. We have recognised that many of
these customers remain satisfied with their software and have therefore offered
a new point release, Series 5.5. This release not only offers a fresher look and
feel but also offers compatibility with 64bit computing, Microsoft's newest
operating systems and the latest Office versions.
Outlook
We continue to be reliant on a number of key shareholders for continuing
financial support through debt finance. These shareholders have indicated that
they are, in principle, willing to continue to support funding requirements of
the company, beyond the periods covered by their current loan arrangements,
provided the Group continues to trade at current levels.
The business has performed in line with our internal budgets for the first half
of the year and we anticipate that this performance will continue into the
second half which should see us achieve our internal target of monthly EBITDA
breakeven by the end of this financial year.
Colin Gallick
Chief Executive Officer
23 September 2010
Finance Review
The Consolidated Income Statement shows an operating loss of GBP0.4 million
compared to a loss of GBP2.7 million in the first half of last year. The loss
last year included GBP1.0 million of exceptional costs related to the
reorganisation of the business.
Revenue in the period was up by 6.8% to GBP1.26 million compared to GBP1.18
million reported in the first half last year.
Revenue comprises the sale of software and related implementation and
installation services and the sale of annual software support contracts. The
Group reported sales of software and related services of GBP0.6million (H1 2010:
GBP0.4 million). The revenue arising from the sale of support contracts is
recognised evenly over the life of the contract and represented GBP0.7 million
(H1 2010: GBP0.8 million) in the period. The key performance metric for the sale
of software support contracts is the renewal rate which was 90% compared to 80%
last year.
The cost of sales includes the direct costs of the delivery of services which
form the majority of revenue. These costs were originally reported as part of
administrative expenses in H1 2010, which has been restated to show the cost of
sales on a consistent basis. The gross margin percentage is up from 62.2% to
78.3% due primarily to a decrease in the costs related to the delivery of
services.
Administrative expenses have decreased by 41.1% from GBP2.3 million to GBP1.4
million as a result of the combination of reductions in headcount (the average
headcount decreased from 54 to 28 with 28 heads employed at 31 July 2010) and
overhead expense management.
In H1 2010 the Group additionally incurred exceptional costs of GBP1.0 million,
covering severance payments to former employees, impairment to intangible fixed
assets and the costs of terminating leases on property.
Finance costs have increased from GBP30,000 to GBP162,000 as a result of
borrowings increasing from an overdraft and loans of GBP1.2 million last year to
loans and convertible debt of GBP3.1 million this year.
There is a tax charge of GBP0.1 million for the period arising from the
rejection of a research and development tax credit repayment claim by HMRC. This
left the expenditure utilisable as losses carried forward but not available for
immediate repayment. Part of this claim was paid by HMRC in prior periods and
the requirement to repay this has been reported as Corporation tax payable on
the balance sheet.
The Group Balance Sheet shows total shareholders' equity as a deficit of GBP3.5
million (last year end GBP2.9 million) funded principally by borrowings and
working capital.
Trade receivables have reduced by GBP0.1 million as a result of an improvement
in collections. Days sales outstanding, measured using the exhaustion method,
from 89 days at 31 January to an exceptional 47 days at 31 July.
The net cash flow consumed by operating activities in the period was GBP0.1
million compared to GBP0.5 million in the first half last year.
Ian Smith
Finance Director
23 September 2010
CONSOLIDATED INTERIM INCOME STATEMENT (Unaudited)
FOR THE SIX MONTHS ENDED 31 JULY 2010
+----------------------------------+--------+-----------------------+-----------+
| | | For the six months |
| | | ended |
+----------------------------------+--------+-----------------------------------+
| | | July 31, | July 31, |
+----------------------------------+--------+-----------------------+-----------+
| Continuing operations | Notes | 2010 | 2009 |
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| | | GBP'000 | GBP'000 |
+----------------------------------+--------+-----------------------+-----------+
| | | | (Restated |
| | | | note 1) |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Revenue | 2 | 1,256 | 1,176 |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Cost of sales | | (272) | (445) |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Gross profit | | 984 | 731 |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Bad debts written off | | (-) | (51) |
+----------------------------------+--------+-----------------------+-----------+
| Exceptional costs | | (-) | (1,046) |
+----------------------------------+--------+-----------------------+-----------+
| Other Administration expenses | | (1,356) | (2,304) |
+----------------------------------+--------+-----------------------+-----------+
| Total Administration expenses | | (1,356) | (3,401) |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Loss from operations | | (372) | (2,670) |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Finance costs | | (162) | (30) |
+----------------------------------+--------+-----------------------+-----------+
| Finance income | | - | - |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Loss before income tax | 2 | (534) | (2,700) |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Income tax expense | | (97) | - |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Loss for the period | 2 | (631) | (2,700) |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Attributable to: | | | |
+----------------------------------+--------+-----------------------+-----------+
| Equity holders of the Company | | (631) | (2,700) |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Loss per share | | | |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
| Basic and diluted (pence per | 3 | (0.386) | (2.379) |
| share) | | | |
+----------------------------------+--------+-----------------------+-----------+
| | | | |
+----------------------------------+--------+-----------------------+-----------+
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
FOR THE SIX MONTHS ENDED 31 JULY 2010
+---------------------------------------------+-----------+-----------+
| For the six months ended |
+---------------------------------------------------------------------+
| | July 31, | July 31, |
+---------------------------------------------+-----------+-----------+
| | 2009 | 2008 |
+---------------------------------------------+-----------+-----------+
| | GBP'000 | GBP'000 |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| Loss for the period | (631) | (2,700) |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| Other comprehensive income | | |
| Exchange differences on translating | | |
+---------------------------------------------+-----------+-----------+
| foreign operations | (-) | (3) |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| Total comprehensive loss for the period, | (631) | (2,703) |
| net of tax | | |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| Attributable to: | | |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
| Equity holders of the Company | (631) | (2,703) |
+---------------------------------------------+-----------+-----------+
| | | |
+---------------------------------------------+-----------+-----------+
CONSOLIDATED BALANCE SHEET AT 31 JULY 2010 (Unaudited)
+----------------------------+-----+----------------------+----------+----------+
| | | July 31, | January | July 31, |
| | | | 31, | |
+----------------------------+-----+----------------------+----------+----------+
| | | 2010 | 2010 | 2009 |
+----------------------------+-----+----------------------+----------+----------+
| | | GBP'000 | GBP'000 | GBP'000 |
+----------------------------+-----+----------------------+----------+----------+
| Assets | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Non-current assets | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Intangible assets | | 244 | 351 | 610 |
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Property, plant and | | 101 | 160 | 299 |
| equipment | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Deferred tax asset | | 64 | 64 | 244 |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| | | 409 | 575 | 1,153 |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Current assets | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Inventories | | - | 17 | 63 |
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Trade receivables | | 558 | 695 | 776 |
+----------------------------+-----+----------------------+----------+----------+
| Other receivables | | 128 | 96 | 183 |
+----------------------------+-----+----------------------+----------+----------+
| Trade and other | | 686 | 791 | 959 |
| receivables | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Cash and cash equivalents | | 343 | 488 | - |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| | | 1,029 | 1,296 | 1,022 |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Total assets | | 1,438 | 1,871 | 2,175 |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Liabilities | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Current liabilities | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Trade and other payables | | 2,109 | 1,991 | 3,084 |
+----------------------------+-----+----------------------+----------+----------+
| Obligations under finance | | 14 | 20 | 25 |
| leases | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Borrowings | | 2,666 | 2,595 | 1,183 |
+----------------------------+-----+----------------------+----------+----------+
| Current Taxation | | 30 | - | - |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| | | 4,819 | 4,606 | 4,292 |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Non-current liabilities | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Borrowings | | 88 | 98 | - |
+----------------------------+-----+----------------------+----------+----------+
| Obligations under finance | | - | 11 | 20 |
| leases | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Deferred tax liability | | 64 | 64 | 244 |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| | | 152 | 173 | 264 |
+----------------------------+-----+----------------------+----------+----------+
| Total liabilities | | 4,971 | 4,779 | 4,556 |
+----------------------------+-----+----------------------+----------+----------+
| Total net liabilities | | (3,533) | (2,908) | (2,381) |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Capital and reserves | | | | |
| attributable to equity | | | | |
| holders of the company | | | | |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Share capital | | 1,635 | 1,635 | 1,135 |
+----------------------------+-----+----------------------+----------+----------+
| Convertible loan notes | | 375 | 375 | - |
+----------------------------+-----+----------------------+----------+----------+
| Share to be issued | | 29 | 29 | 29 |
+----------------------------+-----+----------------------+----------+----------+
| Share premium | | 412 | 412 | - |
+----------------------------+-----+----------------------+----------+----------+
| Merger reserve | | 29,260 | 29,260 | 29,260 |
+----------------------------+-----+----------------------+----------+----------+
| Share option reserve | | 235 | 229 | 295 |
+----------------------------+-----+----------------------+----------+----------+
| Reverse acquisition reserv | | (20,570) | (20,570) | (20,570) |
+----------------------------+-----+----------------------+----------+----------+
| Retained earnings | | (14,972) | (14,341) | (12,597) |
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Foreign currency | | 63 | 63 | 67 |
| translation reserve | | | | |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
| Total deficit | | (3,533) | (2,908) | (2,381) |
+----------------------------+-----+----------------------+----------+----------+
| | | | | |
+----------------------------+-----+----------------------+----------+----------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited)
FOR THE SIX MONTHS ENDED 31 JULY 2010
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| | Share | Shares | Share | Merger | Reverse | Share | Retained | Convertible | Translation | Total |
| | Capital | to be | premium | reserve | acquisition | option | earnings | loan notes | reserve | |
| | | issued | | | reserve | reserve | | | | |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| At 1 February | 1,135 | 29 | - | 29,260 | (20,570) | 283 | (9,897) | - | 64 | 304 |
| 2009 | | | | | | | | | | |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Total | - | - | - | - | - | - | (2,700) | - | 3 | (2,697) |
| comprehensive | | | | | | | | | | |
| income | | | | | | | | | | |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Movement on | - | - | - | - | - | 12 | - | - | - | 12 |
| share option | | | | | | | | | | |
| reserve | | | | | | | | | | |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Issue of shares | - | - | - | - | - | - | - | - | - | - |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| At 31 July 2009 | 1,135 | 29 | - | 29,260 | (20,570) | 295 | (12,597) | - | 67 | (2,381) |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| | Share | Shares | Share | Merger | Reverse | Share | Retained | Convertible | Translation | Total |
| | Capital | to be | premium | reserve | acquisition | option | earnings | loan notes | reserve | |
| | | issued | | | reserve | reserve | | | | |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| At 1 February | 1,635 | 29 | 412 | 29,260 | (20,570) | 229 | (14,341) | 375 | 63 | (2,908) |
| 2010 | | | | | | | | | | |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Total | - | - | - | - | - | - | (631) | - | - | (631) |
| comprehensive | | | | | | | | | | |
| income | | | | | | | | | | |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Movement on | - | - | - | - | - | 6 | - | - | - | 6 |
| share option | | | | | | | | | | |
| reserve | | | | | | | | | | |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Issue of loan | - | - | - | - | - | - | - | - | - | - |
| notes | | | | | | | | | | |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| Issue of shares | - | - | - | - | - | - | - | - | - | - |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
| At 31 July 2010 | 1,635 | 29 | 412 | 29,260 | (20,570) | 235 | (14,972) | 375 | 63 | (3,533) |
+-----------------+---------+---------+---------+---------+-------------+---------+----------+-------------+-------------+---------+
CONSOLIDATED CASH FLOW STATEMENT (Unaudited)
FOR THE SIX MONTHS ENDED 31 JULY 2010
+--------------------------------------------+-------+---------+---------+
| | | For the six |
| | | months ended |
+--------------------------------------------+-------+-------------------+
| | | July | July |
| | | 31, | 31, |
+--------------------------------------------+-------+---------+---------+
| |Notes | 2010 | 2009 |
+--------------------------------------------+-------+---------+---------+
| | | GBP'000 | GBP'000 |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| Net Cash flows from operating activities | 4 | (84) | (541) |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| Taxation | | - | 231 |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| Investing activities | | | |
+--------------------------------------------+-------+---------+---------+
| Purchases of property, plant and equipment | | - | (9) |
+--------------------------------------------+-------+---------+---------+
| Expenditure on internally developed | | - | (204) |
| intangible assets | | | |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| Net cash used in investing activities | | - | (213) |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| Financing activities | | | |
+--------------------------------------------+-------+---------+---------+
| Borrowings | | (18) | 500 |
+--------------------------------------------+-------+---------+---------+
| Interest paid | | (26) | - |
+--------------------------------------------+-------+---------+---------+
| Repayment of obligations under finance | | (17) | (18) |
| leases | | | |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| Net cash from financing activities | | (61) | (18) |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| Net decrease in cash and cash equivalents | | (145) | (41) |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| Cash and cash equivalents at the beginning | | 488 | (642) |
| of the period | | | |
+--------------------------------------------+-------+---------+---------+
| | | | |
+--------------------------------------------+-------+---------+---------+
| Cash and cash equivalents at the end of | | 343 | (683) |
| the period | | | |
+--------------------------------------------+-------+---------+---------+
ACCOUNTING POLICIES
Basis of preparation
The financial information in these interim results is that of the holding
company and all of its subsidiaries (the Group). It has been prepared in
accordance with the recognition and measurement requirements of International
Financial Reporting Standards as adopted for use in the EU (IFRSs). The
accounting policies applied by the Group in this financial information are the
same as those applied by the Group in its financial statements for the year
ended 31 January 2010 and which will form the basis of the 2010/11 financial
statements.
There are no new published standards or interpretations and amendments to
published standards, that are not yet effective, that once effective would
materially affect the Group.
The comparative financial information presented herein for the year ended
31 January 2010 does not constitute full statutory accounts for that period. The
Group's Annual Report for the year ended 31 January 2010 has been delivered to
the Registrar of Companies. The Group's Independent Auditors' report on those
accounts was unqualified, did include a reference to an emphasis of matter due
to uncertainty over going concern and did not contain a statement under section
498(2) or 498(3) of the Companies Act 2006. The financial information for the
half years ended 31 July 2010 and 31 July 2009 have neither been audited nor
reviewed pursuant to guidance issued by the Auditing Practices Board.
The Consolidated Income Statement for 2009 has been marked as restated because
the cost of sales has been restated to include GBP262k of direct costs of sales
for services which was previously included in administrative expenses.
Additionally the line previously disclosed as sales and marketing costs
(GBP836k) has been removed with the offsetting amount included in administrative
expenses.
The restatement does not have any impact on the profit or the net assets for
either of the periods nor the balance sheet at the beginning of the comparative
period. Therefore it is considered appropriate not to present a balance sheet at
the beginning of the comparative period.
1. SEGMENT INFORMATION
The Group has one operating segment, the design, sale and support of computer
software for the electronic management of information and documents.
The segment results are as follows:
+----------------------------------+----------+---------+
| | 2010 | 2009 |
+----------------------------------+----------+---------+
| | | |
+----------------------------------+----------+---------+
| | GBP'000 | GBP'000 |
+----------------------------------+----------+---------+
| | | |
+----------------------------------+----------+---------+
| Sales through resellers to end | 1,341 | 1,563 |
| users | | |
+----------------------------------+----------+---------+
| Net effect of stock deployed | (85) | (387) |
+----------------------------------+----------+---------+
| | | |
+----------------------------------+----------+---------+
| Revenue | 1,256 | 1,176 |
+----------------------------------+----------+---------+
| | | |
+----------------------------------+----------+---------+
| Loss before income tax | (534) | (2,700) |
+----------------------------------+----------+---------+
| Loss for the period | (631) | (2,700) |
+----------------------------------+----------+---------+
| | | |
+----------------------------------+----------+---------+
| | | |
+----------------------------------+----------+---------+
Included in revenue above are GBP5,000 (H1 2010 credit GBP15,000) related to
sales in Europe. All other revenue relates to the UK.
Include in revenue above are sales of software and related services GBP0.6
million and (H1 2010: GBP0.4 million). The remaining revenue comprised software
maintenance contracts GBP0.7 million (H1 2010: GBP0.8 million).
All non-current assets and liabilities are held within the UK.
The Group had one reseller who was responsible for 25 percent (last year 22%) of
the Group's sales through resellers to end users. No other reseller was
responsible for more than ten percent of the Group's sales through resellers to
end users.
2. LOSS PER SHARE
+--------------------------------------+-------------+-------------+
| | For the six months |
| | ended |
+--------------------------------------+---------------------------+
| | July 31, | July 31, |
+--------------------------------------+-------------+-------------+
| | 2010 | 2009 |
+--------------------------------------+-------------+-------------+
| | GBP'000 | GBP'000 |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| Loss for the period | (631) | (2,700) |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| Basic loss per share | (0.386)p | (2.379)p |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| Diluted loss per share | (0.386)p | (2.379)p |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| Weighted average number of common | 163,472,662 | 113,472,662 |
| share outstanding | | |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
| Diluted weighted average number of | 163,472,662 | 113,472,662 |
| common share outstanding | | |
+--------------------------------------+-------------+-------------+
| | | |
+--------------------------------------+-------------+-------------+
The diluted weighted average number of common shares outstanding results from
share options. The effect of the share options has not been included in the
calculation of the diluted earnings per share because of their antidilutive
effect.
3. CASH GENERATED FROM OPERATIONS
+----------------------------------------+---------+----------+
| |For the six months |
| | ended |
+----------------------------------------+--------------------+
| | July | July 31, |
| | 31, | |
+----------------------------------------+---------+----------+
| | 2010 | 2009 |
+----------------------------------------+---------+----------+
| | GBP'000 | GBP'000 |
+----------------------------------------+---------+----------+
| | | |
+----------------------------------------+---------+----------+
| Loss for the period | (631) | (2,700) |
+----------------------------------------+---------+----------+
| | | |
+----------------------------------------+---------+----------+
| Adjustments for: | | |
+----------------------------------------+---------+----------+
| Tax | 97 | - |
+----------------------------------------+---------+----------+
| Depreciation | 59 | 87 |
+----------------------------------------+---------+----------+
| Amortisation | 107 | 545 |
+----------------------------------------+---------+----------+
| Foreign currency translation | - | 3 |
+----------------------------------------+---------+----------+
| Employee share scheme | 6 | 12 |
+----------------------------------------+---------+----------+
| Interest expense | 162 | 3 |
+----------------------------------------+---------+----------+
| | | |
+----------------------------------------+---------+----------+
| Changes in working capital: | | |
+----------------------------------------+---------+----------+
| Inventories | 17 | 119 |
+----------------------------------------+---------+----------+
| Trade and other receivables | 39 | 907 |
+----------------------------------------+---------+----------+
| Trade and other payables | 60 | 483 |
+----------------------------------------+---------+----------+
| | | |
+----------------------------------------+---------+----------+
| Net cash used in operating activities | (84) | (541) |
+----------------------------------------+---------+----------+
| | | |
+----------------------------------------+---------+----------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEUFMEFSSEDU
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