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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 |
From May 2019 to May 2024
TIDMINVU
RNS Number : 6873O
Invu plc
22 September 2011
Invu PLC
Interim Results for the six months ended 31 July 2011
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 2011 (H1 2012).
Key Financial Points
-- Revenue GBP1.32m (H1 2011: GBP1.26m)
-- Operating loss GBP0.2m (H1 2011: GBP0.4m)
o Adjusted EBITDA breakeven (H1 2011: Loss of GBP0.2m)
-- Net cash (cash net of borrowings) GBP0.7m (H1 2011: net borrowings GBP2.4m)
Commercial Highlights
-- Capital reorganisation increases equity by GBP3.05 million
-- IRIS contract making a significant contribution to sales
-- Sale of software and services to a major stockbroker
Colin Gallick, Chief Executive Officer of Invu, commented:
"We continue to make steady progress in the improvement of the trading performance while the loan note conversion has significantly strengthened our balance sheet and provided us with a sound financial base going forward."
Enquiries: Invu Plc 01604 859893 Colin Gallick, CEO Ian Smith, CFO Cannaccord Genuity 020 7050 6500 Simon Bridges
Kit Stephenson
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
The achievement of a first half adjusted EBITDA breakeven, positive operating cash flow of GBP0.1 million and revenue growth of 4.5% demonstrates the continued progress towards our goal of developing a profitable, self sustaining and growing business.
The capital reorganisation, as described below, was completed in the period and this significantly strengthens the balance sheet as well as reducing the interest burden. The reduction in interest expense in future periods should make a major contribution towards the group's ability to deliver profit attributable to equity holders of the company in future years.
The capital reorganisation included investment of an additional GBP3,050,000 in the company by way of non-voting A shares. This investment included the conversion of loans, including interest, amounting to GBP2,353,412, and a subscription (cash payment) of GBP696,588. Part of the subscription monies have been subsequently (August 2011) used to repay a GBP500,000 loan from certain Puma VCT's, and the balance will be used to pay withholding taxes arising on the deemed payment of interest and professional fees related to the issue of the shares. The creation of the A shares, the conversion and the subscription, were approved by shareholders at a General Meeting on 29 July 2011.
Following the capital reorganisation, the company's issued share capital is 163,472,662 ordinary shares at GBP0.01 each and 305,000,000 of A ordinary shares at GBP0.01 each. The A ordinary shares rank in priority to the ordinary shares, with respect to any distribution of assets of the Company on a winding-up, and will have no rights to attend and vote at general meetings of shareholders of the Company, but will otherwise rank pari passu in all respects with the issued ordinary shares, including the right to receive all dividends and other distributions declared, made or paid on the Company's share capital.
Following the capital reorganisation, the company borrowings were GBP631,000 of which GBP500,000 has subsequently been repaid (see above) leaving GBP131,000 of borrowings outstanding at the date of this announcement, which represents the debt element of the convertible loan issued in August 2009. The total value of this convertible loan was GBP500,000 and this is convertible into equity at 2.5 pence per share in August 2014.
Daniel Goldman
Non Executive Chairman
22 September 2011
Chief Executive's Statement
Invu remains focussed on cash generation and therefore we consider the group's measure of adjusted 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 adjusted EBITDA, reporting a breakeven result compared to a GBP0.2 million loss in H1 2011.
There has been continuing improvement in productivity in the period. This was represented by an improvement in revenue up 4.5% at GBP1.32m (H1 2011: GBP1.26m), from a lower (13.1 % lower) operating cost base (cost of sales plus other administrative expenses) which demonstrates that we continue to make better use of our resources than in prior periods.
Operations
During the period the business has continued to be focused on, the design, development and distribution of software that enables customers to manage paper and electronic documents and information, as well as business process workflow, in a simple and effective way.
Our market
We have carried out the great majority of our business in the United Kingdom.
We appointed Kompro as our exclusive reseller in the Netherlands with effect from March 2011 with a view to maintaining and growing our business in the Netherlands.
Small and Medium sized businesses
Our software is designed to address the needs of small and medium sized businesses.
We continue to improve our sales mix towards the larger companies in the small and medium sized business sector. During the period we won deals with 84 new customers, (last year 112 new customers) and saw our average deal size increase by 26 %.
We continue to serve our existing customer base with 1,681 customer sites at 31 July 2011, covered by an InvuCare contract which provides them software support and software assurance, and 191 existing customer sites adding additional seats and software during the period.
Sales model
Our primary route to market is through our reseller channel, with 78.4% of sales through resellers.
Over the last two years we have reorganised this channel (a reduction from 200 to 50 reseller partners was
implemented in 2010) and we now see 93% of our of reseller sales through our top 20 resellers (H1 2011: 91.4%).
Vertical Markets
Invu document management software can yield significant business benefits to any business in any sector and consequently our reliance on any particular sector is limited.
We have developed a strong vertical market in the accountancy sector and this market has consistently represented more than 10% of our new software sales over the last three years. On 30 April 2010, we announced a new white-label agreement with IRIS, the UK's largest private software house. Under the agreement, IRIS provide Invu's document management product to the UK accountants market as an integrated offering under the IRIS brand. In the first half of this year IRIS has been responsible for 20% of our sales to new customer sites.
During the period our most significant individual new software sale was to the stockbroker Redmayne-Bentley, who are using the software to remove their dependence on paper-based filing, improve systems through electronic document flow, to improve search and retrieval, and to enhance workflow and FSA reporting.
Delivering market-driven innovation
The latest release of the software (released in the first quarter of 2011) has been well received by customers who have given particularly good feedback on Invu Web Approval and Invu Email Manager.
The next major software release is scheduled for the first quarter of 2012.
Outlook
In the balance of this financial year to 31 January 2012 we intend to continue to build on the stable base we have created during the first half of the year.
Colin Gallick
Chief Executive Officer
22 September 2011
Finance Review
The Consolidated Income Statement shows an operating loss of GBP0.2 million compared to a loss of GBP0.4 million in the first half of last year. The loss for the period included GBP0.1 million of exceptional costs related to professional fees incurred on the capital reorganisation.
Revenue in the period was up by 4.5% to GBP1.32 million compared to GBP1. 26 million reported in the first half of 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 GBP0.5million (H1 2011: GBP0.6 million). The revenue arising from the sale of support contracts is recognised evenly over the life of the contract and represented GBP0.8 million (H1 2011: GBP0.7 million) in the period. The key performance metric for the sale of software support contracts is the renewal rate which was 89% compared to 90% last year.
The cost of sales includes the direct costs of the delivery of services which form the majority of revenue. The gross margin percentage is stable at 78.2% (H1 2011 78.3%).
The Group incurred GBP0.1m in professional fees related to the Capital reorganisation which was approved by shareholders on 29 July 2011. This reorganisation resulted in an addition to share capital of GBP3.05 million as a result of the conversion of debt and related interest (GBP2.35 million), and a subscription for shares (GBP0.7 million). The major part of the subscription monies have subsequently been used to repay (in August 2011) a GBP0.5m loan from certain Puma VCT's, with the remainder to pay withholding taxes due on interest paid and the professional fees related to the issue. These professional fees have been shown as an exceptional cost in the income statement.
Other administrative expenses have decreased by 16.8% from GBP1.36 million to GBP1.13 million as a result of the full period impact of the cost reduction program implemented in December 2010
Finance costs were stable at GBP0.2 million. Following the capital reorganisation these costs are expected to be significantly less in future periods.
There is a tax credit of GBP0.04 million for the period (H1 2011 charge GBP0.1 million) arising from payment of a research and development tax credit repayment claim by HMRC.
The Group Balance Sheet shows total shareholders' equity as a deficit of GBP0.84 million (last year end GBP3.7 million) funded principally by borrowings and working capital.
Trade receivables are stable at GBP0.5 million with days sales outstanding, measured using the exhaustion method, from 70 days at 31 January to 67 days at 31 July.
The net cash flow generated by operating activities in the period was GBP0.1 million compared to GBP0.1 million consumed in the first half last year.
Ian Smith
Finance Director
22 September 2011 CONSOLIDATED INTERIM INCOME STATEMENT (Unaudited)
FOR THE SIX MONTHS ENDED 31 JULY 2011
Hot Features
Premium
For the six months ended
July 31, July 31,
Continuing operations Notes 2011 2010
GBP'000 GBP'000
Revenue 2 1,315 1,256
Cost of sales (287) (272)
------------- ------------
Gross profit 1,028 984
Exceptional costs (72) -
Other Administration expenses (1,128) (1,356)
------------------------------------- ------ ------------- ------------
Total Administration expenses (1,200) (1,356)
Loss from operations (172) (372)
Finance costs (159) (162)
Loss before income tax 2 (331) (534)
Income tax expense 42 (97)
------------- ------------
Loss for the period 2 (289) (631)
============= ============
Attributable to:
Equity holders of the Company (289) (631)
============= ============
Loss per share
Basic and diluted (pence per share) 3 (0.177) (0.386)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)
FOR THE SIX MONTHS ENDED 31 JULY 2011
For the six months ended
July 31, July 31,
2011 2010
GBP'000 GBP'000
Loss for the period (289) (631)
Other comprehensive income
Exchange differences on translating
foreign operations (3) (-)
--------- ---------
Total comprehensive loss for the period,
net of tax (292) (631)
========= =========
Attributable to:
Equity holders of the Company (292) (631)
--------- ---------
CONSOLIDATED BALANCE SHEET AT 31 JULY 2011 (Unaudited)
July 31, January 31, July 31,
2011 2011 2010
GBP'000 GBP'000 GBP'000
Assets
Non-current assets
Intangible assets 143 210 244
Property, plant and
equipment 27 42 101
Deferred tax asset - - 64
--------- ------------ ---------
170 252 409
--------- ------------ ---------
Current assets
Trade receivables 493 494 558
Other receivables 58 87 128
------------------------------ --------- ------------ ---------
Trade and other receivables 551 581 686
Cash and cash equivalents 1,316 470 343
--------- ------------ ---------
1,867 1,051 1,029
--------- ------------ ---------
Total assets 2,037 1,303 1,438
========= ============ =========
Liabilities
Current liabilities
Trade and other payable 2,290 2,182 2,109
Obligations under finance
leases - - 14
Borrowings 524 2,667 2,666
Current Taxation 30 30 30
--------- ------------ ---------
2,844 4,879 4,819
--------- ------------ ---------
Non-current liabilities
Borrowings 77 77 88
Deferred tax liability - - 64
--------- ------------ ---------
77 77 152
Total liabilities 2,921 4,956 4,971
--------- ------------ ---------
Total net liabilities (884) (3,653) (3,533)
========= ============ =========
Capital and reserves
attributable to equity
holders of the company
Share capital 4,685 1,635 1,635
Convertible loan notes 375 375 375
Share to be issued 29 29 29
Share premium 412 412 412
Merger reserve 29,260 29,260 29,260
Share option reserve 244 233 235
Reverse acquisition
reserve (20,570) (20,570) (20,570)
Retained earnings (15,379) (15,090) (14,972)
Foreign currency translation
reserve 60 63 63
--------- ------------ ---------
Total deficit (884) (3,653) (3,533)
========= ============ =========
CONSOLIDATED CASH FLOW STATEMENT (Unaudited)
FOR THE SIX MONTHS ENDED 31 JULY 2011
For the six months
ended
July 31, July 31,
Notes 2011 2010
GBP'000 GBP'000
Net Cash flows from operating activities 4 104 (84)
Taxation 76 -
Investing activities
Purchases of property, plant and equipment (7) -
Net cash used in investing activities (7) -
Financing activities
Issue of shares 697 -
Borrowings (18) (18)
Interest paid (6) (26)
Repayment of obligations under finance
leases - (17)
---------- ---------
Net cash from financing activities 673 (61)
---------- ---------
Net increase/(decrease) in cash and cash
equivalents 846 (145)
Cash and cash equivalents at the beginning
of the period 470 488
---------- ---------
Cash and cash equivalents at the end of
the period 1,316 343
---------- ---------
ACCOUNTING POLICIES
1. 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 2011, and which will form the basis of the 2011/12 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 2011 does not constitute full statutory accounts for that period. The Group's Annual Report for the year ended 31 January 2011 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 2011 and 31 July 2010 have neither been audited nor reviewed pursuant to guidance issued by the Auditing Practices Board.
2. 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:
2011 2010
GBP'000 GBP'000
Sales through resellers to end
users 1,340 1,341
Net effect of stock deployed (25) (85)
-------- --------
Revenue 1,315 1,256
Loss before income tax (331) (534)
Loss for the period (289) (631)
Included in revenue above are GBP39,000 (H1 2010 GBP5,000) related to sales in Europe. All other revenue relates to the UK.
Include in revenue above are sales of software and related services GBP0.5 million and (H1 2011: GBP0.6 million). The remaining revenue comprised software maintenance contracts GBP0.8 million (H1 2011: GBP0.7 million).
All non-current assets and liabilities are held within the UK.
The Group had one reseller who was responsible for 18 percent (last year 25%) 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.
3. LOSS PER SHARE
For the six months
ended
July 31, July 31,
2011 2010
GBP'000 GBP'000
Loss for the period (289) (631)
============ ============
Basic loss per share (0.177)p (0.386)p
------------ ------------
Diluted loss per share (0.177)p (0.386)p
------------ ------------
Weighted average number of common
share outstanding 163,472,662 163,472,662
------------ ------------
Diluted weighted average number of
common share outstanding 163,472,662 163,472,662
------------ ------------
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.
4. CASH GENERATED FROM OPERATIONS
For the six months
ended
July 31, July 31,
2011 2010
GBP'000 GBP'000
Loss for the period (289) (631)
Adjustments for:
Tax (42) 97
Depreciation 17 59
Amortisation 72 107
Employee share scheme 11 6
Interest expense 159 162
Changes in working capital:
Inventories - 17
Trade and other receivables (15) 39
Trade and other payables 191 60
---------- ---------
Net cash used in operating activities 104 (84)
========== =========
5. ADJUSTED EBITDA
For the six months
ended
July 31, July 31,
2011 2010
GBP'000 GBP'000
Loss for the period (289) (631)
Adjustments for:
Interest expense 159 162
Tax (42) 97
Depreciation 17 59
Amortisation 72 107
Employee share scheme 11 6
Exceptional item 72 -
---------- ---------
- (200)
========== =========
This information is provided by RNS
The company news service from the London Stock Exchange
END
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