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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 : 4116J
Invu plc
30 June 2011
30 June 2010
Invu plc
Preliminary Results for the Year Ended 31 January 2011
Invu plc ("Invu" or the "Company"), (INVU.L) the document management software provider, announces its
preliminary results for the year ended 31 January 2011.
Key Financial Highlights
-- Revenues of GBP2.5million (2010: GBP2.2million)
-- Loss before tax of GBP0.7million (2010: loss: GBP4.5million)
-- Net Cash generation from operating activities GBP0.1 million (2010: outflow: GBP2.7million)
Operational Highlights
-- IRIS OEM agreement
-- Significant contracts wins in the Housing Association market
-- Continuing product innovation, including email management and web approval
Subsequent events
-- Proposed loan note conversion and subscription subject to shareholder approval
Daniel Goldman, Non Executive Chairman, said:
"This year we have begun to see the benefits of the changes we started in 2009, with significant improvements in the profit and loss and cash flow. The loan note conversion, proposed subsequent to the year end, will significantly strengthen our balance sheet and provide the business with a sound financial base going forward."
Colin Gallick, Chief Executive, said:
"A focus on our core markets, improvement of our distribution channel and a commitment to market driven innovation, has resulted in a significant productivity improvement in the business. We look to continue this momentum in the new financial year."
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Enquiries:
Invu plc 01604 859893
Colin Gallick, CEO
Ian Smith, CFO
Canaccord 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
This annual report shows significant progress has been made towards the strategic priorities originally stated in the annual report for the financial year ending 31 January 2009. These priorities were identified as necessary to restore the Group to profitability and positive cash flow as well as restoring stakeholder confidence in the business through management changes, good governance and adequate funding of the business.
The results for this financial year show significant improvement, in both operating profit and operating cash flow, on the last two years and represent substantial progress towards our goal of rebuilding a growing business with sustainable profitability and positive cash flow.
The Board recruited a new executive management team during the last financial year and this year has seen their first full year in place. They initiated significant change during the first few months of their time in office and this year they have been focused on delivering the benefits of those changes and preparing the business for future growth.
The Board reorganised at the non executive level last year and this year has been one of stability at main board level with the focus on good practice and governance.
The best monitor of the health of the business is its operating cash generation which is shown in the consolidated cash flow statement as GBP0.1 million, a significant improvement on the GBP2.7 million consumed in the previous year. This demonstrates the ability of the business to fund itself at the current operating level.
The balance sheet still includes significant gearing as a result of the legacy of poor performance in previous years. The debt holders at the financial year end included Tyne & Wear Holdings Limited, Magpie Investments Limited and Cynthia Goldman who have been identified in the annual report as related parties. The debt at the financial year end also included an amount of GBP500,000 due to certain Puma Venture Capital Trusts with a repayment date of 30 June 2011. This repayment date has subsequently been extended to 30 September 2011. The related parties have agreed, subject to the approval of shareholders, to invest an additional GBP3,050,000 in the company by way of non-voting A shares. This investment will include conversion of the amounts due on their loans, including interest as of 30 June 2011, amounting to GBP2,353,412, and a cash payment of GBP696,588. The subscription monies will be used to repay the amount due to Puma and 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 are subject to the approval of shareholders which will be sought at a General Meeting to be held on 29 July 2011. The loan repayment date for debt due to the related parties has been extended to the date of the General Meeting with any interest arising in respect of the period post 30 June 2011 not to be payable until 31 July 2013.
I would like to thank the management and employees for their efforts this past year. They have allowed the company to progress towards the goals of growth and profits, and along with our business partners I look forward to another year of progress.
Daniel Goldman
Non Executive Chairman
29 June 2011
Chief Executive Officer's statement
Financial performance
I am pleased to report a full year trading performance with stronger sales (up 13.2% to GBP2.5 million), stronger gross margins (up from 52.0% to 80.7%), with lower administrative overheads (down by 45.6% to GBP2.3m) and a much reduced operating loss position (losses down to GBP0.3 million from GBP4.4 million).
I am particularly pleased to report that following our (unaudited) reported operating loss of GBP0.37 million for the first half of the year, we made a small operating profit in the second half of the year of GBP0.05 million. These results are supported by our operating cash generation which in the year was GBP0.1m and in the second half GBP0.2 million (first half GBP0.1 million consumed).
We exit the year, having received no additional funding during the year, with a cash balance of GBP0.5 million (last year GBP0.5 million).
Operations
During the year the business has been focused on what it does best, 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.
We have concentrated our efforts on our home market, small and medium sized businesses, our most successful resellers, our strongest verticals, and on delivering market driven innovation.
Our market
We have carried out the great majority of our business in the United Kingdom and have had a small amount of legacy revenue from overseas, the majority of which arises from business relationships established through our former Netherlands office.
In the coming year we will look to continue to develop our business in the United Kingdom but where possible we will build on strengths in existing overseas markets. We have as a result 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 have set ourselves a goal to improve our mix towards the larger companies in the small and medium sized business sector. During the year we won deals at 217 customers (last year 297) and saw our average deal size increase by fifty percent.
We have a significant customer base, having sold software to more than 4,500 companies since the business started in 1997 with 1,850 of these entering into an InvuCare contract which allows them software support and software assurance.
Reseller sales model
Our primary route to market is through our reseller channel.
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 the majority of our sales through our top 20 resellers (83% of sales).
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 eight months of this agreement we have seen IRIS rise to be one of our top 5 partners for the year.
During the year we have seen our most significant individual new software sales to Housing Associations (including Seren and Adactus) and this has become our second most important vertical market sector, driven partially by the consolidation within the sector, which affords opportunities for space saving when organisations combine along with process improvements arising from the use of electronic documents.
Delivering market-driven innovation
Towards the end of the financial year we introduced our latest software release and this has made available a number of innovations that respond to customer needs. These include;
Invu Email Manager which targets the concern many organisations have about the loss of critical business information in email correspondence. The software enables organisations to mitigate this risk and to reclaim all appropriate emails as business assets. Rich rules based functionality combined with direct Outlook client feedback ensure that communications, including attachments are securely captured and searchable within Invu Document Management;
Invu Web Approval which targets cross-functional teams or remote workers without full electronic document management access. This is a web based software enabling individuals without access to the premises based Invu Document Management software to keep up to date with all tasks and maintain their part in an electronic approval process.
Outlook
In the financial year to 31 January 2012 we intend to continue to build on the stable base we have created during the year to 31 January 2011.
Colin Gallick
Chief Executive Officer
29 June 2011
Financial Review
Revenue has increased by 13.2% from GBP2.2 million to GBP2.5 million. 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 GBP1.0 million. The revenue arising from the sale of support contracts is recognised evenly over the life of the contract and revenue was GBP1.5 million in the period. The key performance metric for the sale of software support contracts is the renewal rate which was 85% compared to 80% last year.
The gross profit has increased to GBP2.0 million from GBP1.1 million. This represents an improvement in the gross margin percentage from 52.0% to 80.7%. This occurs because of a favourable shift in the mix of revenues towards software, reduction in the fixed cost (primarily headcount related) of supporting customers and the one off costs incurred in the prior year related to the write off of inventory.
Administrative expenses have reduced from GBP5.5 million to GBP2.3 million. This is primarily the result of the cost reduction started in the last financial year which carried some exceptional cost in that year (GBP1.2 million) and resulted in a significant decrease in the headcount. The average headcount was 25 compared to 53 last year with 27 (last year 30) employed at the end of the year. The head count figures include 3 non-executive directors.
Finance costs were GBP0.3 million this year compared to GBP0.01 million last year. This increase arose because of the full year impact of the interest burden on the debt taken on in the previous year.
The tax charge is GBP0.1 million compared to a credit of GBP0.05 million last year. The charge represents the reversal of the research and development tax credit claimed for the financial year ending 31 January 2009 which has subsequently been rejected by Her Majesty's Revenue and Customs.
The net loss of GBP0.7 million (last year loss GBP4.4 million) results in a loss per share of 0.46 pence compared to a loss per share of 3.24 pence in the previous year.
The cash consumption in the period was GBP0.018 million compared to GBP1.1 million net cash surplus last year. No additional debt or equity was raised during the year (last year GBP3.9 million). Interest and hire purchase repayments amounted to GBP0.12 million (last year GBP0.07 million). Investment in non-current assets was GBP0.06 million (last year GBP0.22 million) of which GBP0.06 million (last year GBP0.2 million) represented capitalisation of research and development costs.
The operating cash generation was GBP0.14 million compared to GBP2.7 million consumed in the prior year. This arose from working capital reduction of GBP0.17 million (last year GBP0.67 million) and the loss adjusted for non cash items of GBP0.03 million compared to GBP3.38 million last year.
The primary driver for working capital reduction in the year was improved days sales outstanding of 70 days compared to 89 days in the prior year. This arises due to the focus of sales on a smaller number of higher quality resellers and improved sales processes.
The loss adjusted for non cash items arises due to the improved profit and loss position explained above combined with the impact of depreciation and amortisation of GBP0.3 million which has contributed significantly towards the reduction in the balance sheet non-current assets from GBP0.58 million to GBP0.25 million.
The balance sheet shows a shareholders' deficit of GBP3.7million (compared to GBP2.9 million last year) which is primarily funded by borrowings of GBP2.7 million (GBP 2.7 million last year, of which GBP2.6 million was shown as current borrowing at 31 January 2010 and then extended during this financial year to 30 June 2011). The plan for repayment of the debt due for repayment on 30 June 2011 is addressed in the Chairman's report.
Ian Smith
Finance Director
29 June 2011
INVU PLC
Consolidated Income Statement
For the year ended 31 January 2011
Notes 2011 2010
GBP'000 GBP'000
Revenue 2 2,488 2,198
Cost of sales (479) (1,054)
---------- ----------
Gross profit 2,009 1,144
Administration expenses (2,335) (4,290)
Exceptional items - (1,213)
-------------------------------- ---------- --------------- ---------------
Total administration
expenses (2,335) (5,503)
---------- ----------
Loss from operations (326) (4,359)
Finance costs (326) (136)
---------- ----------
Loss before income tax 2 (652) (4,495)
Income tax (charge)/credit 3 (97) 51
---------- ----------
Loss for the year
attributable to: 2
Equity holders of the
Company (749) (4,444)
Earnings per share
Basic (pence per share) 4 (0.46) (3.24)
---------- ----------
Diluted (pence per share) 4 (0.46) (3.24)
---------- ----------
INVU PLC
Statement of Comprehensive Income
For the year ended 31 January 2011
Notes 2011 2010
GBP'000 GBP'000
Loss for the year 2 (749) (4,444)
Other comprehensive income
Exchange differences on
translating foreign
operations - (1)
------------ ------------
Other comprehensive income
for the year (net of tax) - (1)
------------ ------------
Total comprehensive income
for the year attributable
to:
Equity holders of the
Company (749) (4,445)
The Company did not have any other income or expense other than the loss for the year.
INVU PLC
Consolidated Balance Sheet
As at 31 January 2011
Notes 2011 2010
GBP'000 GBP'000
Non-current assets
Intangible assets 210 351
Property, plant and
equipment 42 160
Deferred tax asset - 64
------------ ------------
252 575
Current assets ------------ ------------
Inventories - 17
Trade and other
receivables 581 791
Cash and cash
equivalents 5 470 488
------------ ------------
1,051 1,296
------------ ------------
Total assets 1,303 1,871
Current liabilities
Trade and other
payables 2,212 1,991
Borrowings 2,667 2,595
Obligations under
finance leases - 20
------------ ------------
4,879 4,606
------------ ------------
Net current liabilities (3,828) (3,310)
------------ ------------
Non-current liabilities
Borrowings 77 98
Obligations under
finance leases - 11
Deferred tax - 64
------------ ------------
77 173
------------ ----------
Total liabilities 4,956 4,779
Net liabilities (3,653) (2,908)
Equity
Share capital 1,635 1,635
Equity components of
convertible loan
notes 375 375
Shares to be issued 29 29
Share premium 412 412
Merger reserve 29,260 29,260
Share option reserve 233 229
Reverse acquisition
reserve (20,570) (20,570)
Retained earnings (15,090) (14,341)
Foreign currency
translation reserve 63 63
------------ ------------
Total deficit
attributable to:
Equity holders of the
Company (3,653) (2,908)
Consolidated statement of changes in equity
For the year ended 31 January 2011
Equity
Components Foreign
of Shares Share Reverse Currency
Share Convertible to be Share Merger option acquisition Retained Translation
Capital loan notes issued premium reserve reserve reserve earnings reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 February
2009 1,135 - 29 - 29,260 283 (20,570) (9,897) 64 304
Total
comprehensive
income - - - - - - - (4,444) (1) (4,445)
Movement on
share option
reserve - - - - - (54) - - - (54)
Issue of loan
notes - 375 - - - - - - - 375
Issue of
shares 500 - - 412 - - - - - 912
At 31 January
2010 1,635 375 29 412 29,260 229 (20,570) (14,341) 63 (2,908)
Equity
Components Foreign
of Shares Share Reverse Currency
Share Convertible to be Share Merger option acquisition Retained Translation
Capital loan notes issued premium reserve reserve reserve earnings reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 February
2010 1,635 375 29 412 29,260 229 (20,570) (14,341) 63 (2,908)
Total
comprehensive
income - - - - - - - (749) - (749)
Movement on
share option
reserve - - - - - 4 - - - 4
At 31 January
2011 1,635 375 29 412 29,260 233 (20,570) (15,090) 63 (3,653)
INVU PLC
Consolidated cash flow statement
For the year ended 31 January 2011
-------------------------------------------------------------
Notes 2011 2010
GBP'000 GBP'000
Net cash flows from operating
activities 6 142 (2,710)
Taxation - 231
Investing activities
Purchases of property, plant and
equipment - (17)
Sales of property, plant and equipment 18 -
Expenditure on internally developed
intangible assets (55) (204)
------------ ------------
Net cash used in investing activities (37) (221)
Financing activities
Net proceeds from the issue of shares - 912
Proceeds from issue of convertible
loan notes - 500
Proceeds from borrowings - 2,500
Interest paid (92) (50)
Repayment of obligations under finance
leases (31) (32)
------------ ------------
Net cash flow from financing
activities (123) 3,830
------------ ------------
Net (decrease)/increase in cash and
cash equivalents (18) 1,130
Cash and cash equivalents at the
beginning of the year 488 (642)
Cash and cash equivalents at 5 470 488
the end of the year
INVU PLC
Notes to the preliminary announcement
For the year ended 31 January 2011
1. ANNUAL REPORT
The financial information set out above/ below does not constitute the company's statutory accounts for 2010 or 2011. Statutory accounts for the years ended 31 January 2011 and 31 January 2010 have been reported on by the Independent Auditors. The Independent Auditor's Reports on the Annual Report and Financial Statements for 2011 and 2010 were unqualified, did draw attention to going concern by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
Statutory accounts for the year ended 31 January 2010 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 January 2011 will be delivered to the Registrar in due course and will be posted to shareholders shortly and thereafter will be available from the Company's registered office at The Beren, Blisworth Farm, Stoke Road, Blisworth, Northampton, Northamptonshire NN7 3DB and from the Company's website www.invu.net.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs.
The consolidated financial statements for the year ended 31 January 2011 comprise the consolidated financial information for Invu plc ("the company") and its subsidiaries.
2. SEGMENTAL ANALYSIS
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 2,610 2,835
Net effect of stock deployed (122) (637)
------------ ------------
Revenue 2,488 2,198
Loss before income tax (652) (4,495)
Loss for the year (749) (4,444)
Included in revenue above are GBP0.007 million (2010: GBP0.055 million) related to sales in Europe. All other revenue relates to the UK.
Include in revenue above are sales of software and related services GBP1.0 million (2010: GBP0.4 million). The remaining revenue comprised software maintenance contracts GBP1.5 million (2010: GBP1.8 million).
All non-current assets and liabilities are held within the UK.
The Group had one reseller who was responsible for 24 percent (last year 24%) 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. TAXATION
2011 2010
GBP'000 GBP'000
Current taxation
- Adjustment in respect of prior years 97 (16)
- Current tax charge/(credit) - (35)
Total tax credit 97 (51)
============ ============
The tax rate used for the reconciliations below is the corporate tax rate of 28% payable by corporate entities in the United Kingdom on taxable profits under tax law in that jurisdiction, the effective rate of taxation used for the calculation of the deferred taxation being 28%.
The charge for the year can be reconciled to the loss per the income statement as follows:
2011 2010
GBP'000 GBP'000
Loss before taxation (652) (4,495)
============ ============
Profit multiplied by standard rate of
corporation tax in the UK of 28% (2010:
28%) (183) (1,259)
Tax effect of:
Expenses not deductable 93 4
Enhanced relief on research and
development (7) (30)
Tax effect of share options 1 (15)
Fixed asset temporary differences 38 218
Unutilised losses carried forward 58 995
Losses surrendered for tax credit - 71
Research and development tax
reversal/(credit) 97 (35)
Total tax charge/(credit) for the year 97 (51)
============ ============
4. EARNINGS PER SHARE
Basic earnings per share 2011 2010
GBP'000 GBP'000
(Loss)/profit for the financial year (749) (4,444)
============= ==================
2011 2010
Number Number
Weighted average number of common shares
in issue during the year 163,472,662 137,034,306
================== ==================
Basic earnings per share (0.46)p (3.24)p
================== ==================
Diluted earnings per share (0.46)p (3.24)p
================== ==================
The basic earnings per share is based on the loss after taxation of GBP749,000 (2010: loss of GBP4,444,000) and on the weighted average number of shares in issue during the year of 163,472,662 (2010: 137,034,306).
In accordance with IAS 33, there is no difference calculated between the basic and diluted earnings per share figures on the basis of the average market value and exercise prices prevailing during the period. The convertible loan notes have no impact on diluted earnings per share because the group is loss making.
5. CASH AND CASH EQUIVALENTS
2011 2010
GBP'000 GBP'000
Cash at bank and in hand 470 488
6. CASH GENERATED FROM OPERATIONS
Group
2011 2010
GBP'000 GBP'000
Loss for the year (749) (4,444)
Adjustments for:
Tax 97 (51)
Depreciation 97 166
Amortisation 196 427
Loss on disposal of property,
plant and equipment 3 68
Loss on disposal of
intangible assets - 377
Foreign currency translation - (1)
Employee share scheme expense 4 (54)
Interest expense 326 136
Changes in working capital
Inventories 17 167
Trade and other receivables 143 1,127
Trade and other payables 8 (628)
Net cash generated by/(used in)
operating activities 142 (2,710)
========= ============
7. AVAILABILITY OF THIS ANNOUNCEMENT
Copies of this announcement will be available from the Company's registered office: The Beren, Blisworth Farm, Stoke Road, Blisworth, Northampton, Northamptonshire NN7 3DB, and on the Company's website, www.invu.net.
8. CAUTIONARY STATEMENT
Invu plc has made forward looking statements in this press release, including: statements about the market for and benefits of its products and services; financial results; product development plans; the potential benefits of business relationships with third parties; and business strategies. These statements about future events are subject to risks and uncertainties that could cause Invu plc's actual results to differ materially from those that might be inferred from the forward-looking statements. Invu plc can make no assurance that any forward-looking statements will prove correct.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GMGZVLLDGMZM
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