We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Nasstar Plc | LSE:NASA | London | Ordinary Share | GB00B0T1S097 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 12.75 | 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
TIDMNASA
RNS Number : 7513K
Nasstar PLC
26 September 2016
Nasstar plc
Interim results for the 6 months ended 30 June 2016
Nasstar plc ("Nasstar", the "Company" or the "Group"; stock code: NASA), a provider of hosted managed and cloud computing services, announces its unaudited interim results for the 6 months ended 30 June 2016.
Financial Highlights
-- 22% revenue growth compared to the same period last year -- 21% Gross Profit growth compared to the same period last year -- 14% adjusted EBITDA** growth compared to the same period last year -- Monthly recurring revenue run rate increased by 6% during H1 -- Additional GBP17k per month of signed recurring revenue which will begin to impact from H2 -- Adjusted earnings*** per share 0.3p for 6 months to 30 June 2016 (H1 2015: 0.3p) -- Basic loss per share 0.1p for 6 months to 30 June 2016 (H1 2015: 0.1p) -- Net debt position improved to GBP4.9m (2015: GBP5.1m)
-- Post period end placing to raise GBP13.3m to fund the acquisition of Modrus and to reduce net debt
Hot Features
Premium
-- Proforma net debt position immediately following placing and Modrus acquisition of GBP3.5m
6 mths to 6 mths to 12 mths to
30 June 16 30 June 15 31 Dec 15
GBP'000 GBP'000 GBP'000
Revenue 8,084 6,628 13,759
EBITDA* 1,599 1,353 2,555
Adjusted EBITDA** 1,599 1,408 2,853
Operating loss (593) (329) (1,163)
Loss before tax (770) (421) (1,296)
Adjusted Profit before tax*** 742 884 1,648
*Comprising earnings adjusted for interest, taxation, depreciation, amortisation and share based payments
**adjusted for exceptional items being costs in relation to reorganisation costs and aborted transaction costs
***adjusted for amortisation of purchased intangibles, share based payments and exceptional items
Key Performance Indicators 30 June 16 30 Jun 15 31 Dec 15 Total monthly recurring revenue at end of period GBP1.233m GBP969,000 GBP1.167m Average monthly recurring revenue per hosted desktop GBP110 GBP128 GBP119 Recurring % of total reported revenue 88% 89% 89% Gross profit percentage 70% 71% 70%
Operational Highlights
-- Integration of VESK progressing to plan, with full integration expected to complete in H2
-- Enhanced marketing plan initiated including the subsidiary renaming strategy, with the Nasstar name being successfully redesigned and re-launched
-- Secured notable hosted desktop contracts in both the legal and recruitment sectors whilst successfully cross-selling the Group's new public cloud integrated services to other Group customers
-- Group Managing Director appointment, David McCarthy, has been particularly successful with a positive impact operationally and within the client base
-- The continued development of the sub-Board management layer and the new single brand has positioned the Group to accelerate "go to market" and synergy opportunities presented to us
-- Identified and, post period end, completed the acquisition of Modrus for a consideration of GBP13.0m (GBP11.7m cash, GBP1.3m equity)
-- Successful placing of GBP13.3m completed to fund the acquisition of Modrus and reduce debt, bringing a number of new institutional shareholders onto the share register
Nigel Redwood, Chief Executive Officer of Nasstar, commented:
"The integration of VESK following the acquisition last year is progressing well and I expect to see the benefits of the full integration in the second half of the year. The first half of the year has progressed positively with trading in line with management expectations. I am pleased to report a healthy level of growth in the monthly recurring revenue base, running at 6 per cent. during the first half reflecting the benefits of some of the new management initiatives we have taken. The Board is optimistic for the remaining half of the year and believes we are progressing in line with full year expectations.
The appointment of David McCarthy as Group MD has been very successful and his support has enabled me to focus on the execution of Group Strategy. I was therefore delighted to announce the acquisition of Modrus in August and was equally reassured with the support shown by our current shareholders and encouraged by the addition of a number of new institutional investors during the recent placing. Modrus adds complementary exposure to vertical markets in which the Group is not currently represented, including Media, Property Services and independent software vendors (ISVs) whilst adding operational breadth as well as scale to the Group."
For further information, please contact:
Nasstar plc +44 (0) 20 7148 5000
Nigel Redwood, Chief Executive Officer
Niki Redwood, Finance Director
finnCap Limited (Nominated Adviser & Broker) +44 (0) 20 7220 0500
Julian Blunt, James Thompson (Corporate Finance)
Stephen Norcross (Corporate broking)
Chairman's Statement
I am delighted to report another strong set of results with revenues increasing by 22% compared with H1 2015, reflecting contribution from VESK Ltd (VESK), which was acquired in Oct 2015.
Furthermore the addition of GBP83K (including contracted recurring revenue scheduled for delivery in H2) per month of recurring revenue is encouraging, demonstrating the continued delivery of organic growth. Recurring revenue in H1 accounted for a significant proportion of total revenues, 88%, underpinning the Group's financial stability and visibility of earnings.
14% adjusted EBITDA growth is equally pleasing considering the Group has initiated its planned enhanced marketing plan whilst bolstering senior management with the successful appointment of the Group Managing Director David McCarthy.
The Operating loss for the period was GBP593,000 reflecting the investment into management and processes at group level in preparation for more effective consolidation of the subsidiaries and the subsequent acquisition of Modrus, alongside the launch of a central marketing and naming plan.
I am proud that the Nasstar name was selected for the unity brand name for the marketing plan and I believe the new look and feel of Nasstar is now an accurate reflection of our sophistication and strong service offerings that have come together as a result of our acquisition strategy.
The post period end acquisition of Modrus and placing has enabled us to reduce net debt ahead of schedule giving us greater flexibility on funding options moving forward.
The team continues to integrate VESK and the addition of Modrus will see us focus over the next 12 months on these integrations to ensure we can achieve maximum operational gearing and synergy benefits that are now available to the enlarged Group.
Outlook
The acquisition of Modrus bolsters the recurring revenue base of the Group by approximately 40% to circa GBP1.7m per month whilst diversifying our customer base and target market with the addition of three new vertical market specialisms.
While it is too early to fully assess the wider economic implications of the UK's decision to leave the EU, the Board recognises the increased uncertainty in the macroeconomic outlook as well as the adverse impact this has had on Sterling, which, as previously announced, has potential to impact cost of sales with Nasstar buying licensing in US Dollars, whilst customer invoicing is in Sterling. The Board does however believe the Group remains well positioned, benefitting from high levels of recurring revenue, providing an essential service to its clients on a more reliable, efficient and flexible cost basis than they would be likely to achieve themselves.
We have a clear strategy and strong customer diversification combined with an organisational scale that provides a strong platform for growth from which we can continue to create shareholder value.
Lord Daresbury
Chairman
Business Review
The Group is a provider of hosted managed and cloud computing services, integrating private and public clouds supplying a robust, secure and stable hosted Information Technology service to business customers. This provides them with enhanced IT performance and greater cost control over their IT function. The Group owns its primary data centre, is head quartered in Telford with regional offices in Northampton, London & Bournemouth whilst 24 x 7 support is delivered from its Auckland office in New Zealand. Nasstar is an accredited Microsoft Gold Partner, officially certified against the Cloud Industry Forum Code of Practice, has G-Cloud 7 status and is certified to ISO 27001.
Nasstar specialise in building bespoke cloud hosted services to manage a client's entire application set, tailor made to suit specific industries, designing public, private and hybrid cloud solutions to meet the objectives of the client. The solution is a highly scalable service that provides benefits including anywhere access to computing; a standardised corporate solution that can be accessed globally in multiple languages; generating cost savings when compared to the traditional IT ownership model whilst replacing capital expenditure with a simple usage based payment model.
The bespoke cloud hosted services includes a comprehensive portfolio of solutions, offering Hosted Desktop, Office 365, Hosted Exchange, Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Hosted Telephony services. Additionally, the Group hosts a wide variety of software applications on behalf of clients. Further, the Group provides managed networks and an extensive end user support service. All such services are supplied on a price per user per month basis building a strong longer term recurring revenue relationship with clients.
The Group holds a tier one agreement to sell Microsoft's cloud offerings known as Office 365 (O365) and Azure. The program enables the Group to supply O365 on a truly flexible per user per month model, with the Group contracting with the end user and retaining full invoicing and customer support. This has enabled the Group to further integrate the O365 offering into its hosted desktop solution, embracing the innovations of O365 as a clear differentiator over its competitors. In addition, the Cloud Solution Program (CSP) enables the Group to benefit from the economies derived from the use of the Microsoft Azure platform, Microsoft's hyper scale IaaS offering.
Furthermore, the Group through its central Professional Services Team provides consultancy services on business processes and application development to its clients in its targeted vertical markets. This enhances its added value service to its managed service client base. As an example, through its exclusive sector focus, Kamanchi has built strong relationships with the specialist recruitment software providers (authors), thus enabling it to offer clients a one-stop solution for all their essential recruitment applications. Similar relationships are established within the legal & financial services sectors.
Strategy
In 2016 the Group embarked on an enhanced marketing plan which includes a brand consolidation strategy. The first fruits of this were seen in July with the re-launch of the Nasstar brand supported by a new website properly reflecting the size and sophistication of the Group today.
Whilst Nasstar has now integrated many of the teams, processes and service offerings acquired in the last three years, the Nasstar, e-know.net, Kamanchi and VESK brands have still been going to market under their respective names. It was felt that this caused a level of confusion amongst clients when buying services from multiple entities across the Group.
The new launch will see all operating divisions consolidate under one Nasstar brand, with investment made into a single fully integrated sales and marketing plan. The aim of the brand consolidation is to maximise the respective strengths of the various offerings within the Group and to help differentiate the full stack of services that the Group can offer, thus ensuring maximum cross sell capabilities and revenue synergy opportunities.
The launch of the new brand and web site saw e-know.net Ltd immediately being renamed as Nasstar Group Ltd and the www.e-know.net domain being retired and redirected to www.nasstar.com. Over the coming months, as the new Nasstar brand gets established within the recruitment sector, the Kamanchi Ltd name will change to Nasstar For Recruitment Ltd and the VESK name will be dropped once Nasstar is established within the G-Cloud market place. Thus by the end of H2 the entire group is expected to be operating under the Nasstar brand (with the exception of recently acquired Modrus). It is anticipated that the Modrus name will be retained until the end of 2017, giving the Group time to establish Nasstar in the verticals that Modrus specialise in, these being Media, Property Services and ISVs.
A critical part to the Group's go to market strategy is the clear focus and specialisation on specific vertical markets, creating relationships with key software vendors, consultants and influencers in these sectors. This has enabled the Group to benefit from strong long term relationships with clients whilst further building momentum within the vertical sectors by encouraging customer referrals. Following the recent Modrus acquisition, the Group can boast vertical specialism in eight sectors, including legal, financial services, recruitment, Government & not for profit, education, property services, media and ISVs.
Towards the end of 2015 and during H1 2016 the Group made a significant investment in management infrastructure, systems and processes in order to ensure the delivery of continued growth and the efficient integration of acquisitions. This investment has positioned the Group well to ensure that potential benefits from future acquisitions, such as Modrus, can be recognised as quickly and fully as possible.
Financial Review
Group revenue for the six month period ending 30 June 2016 was GBP8.1m, representing growth of 22% compared to the same period last year (H1 2015: GBP6.6m). Delivered recurring revenue grew in H1 by GBP66k per month, which when combined with the signed but undelivered GBP17k per month, which will be recognised in H2, represented a 7% organic sales growth in recurring revenue.
Gross margin percentage has been maintained at 70% (full year 2015: 70%) and is in line with management key performance indicators and forecasts.
There has been 14% growth in adjusted EBITDA** to GBP1.6m (H1 2015: GBP1.4m). At 20% of revenues this maintains our strong performance and is in line with the Group's target, despite the increase in expenses represented by the enhanced marketing plan and continued investment in the management layer, which included the recruitment of a Group MD. These latter items contributed to an increased operating loss of GBP0.6m (H1 2015: GBP0.3m).
Adjusted profit before tax*** reduced slightly as a result of the additional interest incurred on the loan taken to finance the VESK acquisition. A portion of the over fund on the recent placing will be used to reduce this loan ahead of schedule therefore reducing the impact of the interest in H2. In addition, the Group will meet certain leverage targets in H2 which will reduce the interest on the loan from 2.95% to 2.5%.
Adjusted profit after tax rose 9% to GBP1m for the period (H1 2015: GBP0.9m) adjusted for amortisation of purchased intangibles, share based payments and exceptional items.
Loss after tax was GBP484,000 (2015: GBP362,000) reflecting increased finance costs and the investment into management resource and group marketing plan.
An amortisation charge of GBP1.5m has been charged to the Consolidated Statement of Comprehensive Income in respect of amortisation of the intangible assets represented by purchased customer contracts.
At the period end the Group showed a net debt position of GBP4.9m (after loans and finance leases) with GBP1.4m cash in the bank.
Post period end the Group raised GBP13.3m via an institutional placing, GBP11.7m of which was used to acquire Modrus, GBP0.6m used to cover costs whilst GBP1m has been used to further reduce net debt.
Adjusted earnings per share has been calculated as follows:-
6 mths 6mths 12 mths
to 30 to 30 to 31
Jun Jun Dec 15
16 Unaudited 15 Unaudited Audited
Reported Loss attributable to
shareholders of the parent (484) (362) (309)
Amortisation of acquired intangibles
including customer contract
intangible 1,474 1,149 2,424
Exceptional Items ** - 55 298
Share Based Payments 38 101 222
Adjusted profit attributable
to shareholders of the parent 1,028 943 2,635
============== ============== =========
Adjusted earnings per ordinary
share* 0.3p 0.3p 0.7p
============== ============== =========
*adjusted for amortisation of purchased intangibles, share based payments and exceptional items
**assumed not tax deductible for the purposes of this illustrative calculation
Subsequent Event, acquisition of Modrus and placing
On 2 September 2016, the Company acquired Modrus for a total consideration of GBP13.0m. GBP11.7m of the consideration was paid in cash and the balance was satisfied by the issue to the vendors of Modrus of 17,333,334 new Ordinary Shares. To fund the cash element of the acquisition consideration the Company placed 177,333,334 new Ordinary Shares at 7.5p per share to raise GBP13.3m (before expenses). The excess funds raised under the terms of the Placing over the GBP11.7m cash consideration were used to fund costs relating to the Acquisition and the Placing (GBP0.6m) with the balance of GBP1.0m used to reduce the Company's indebtedness.
Modrus was founded in 2004 by current Managing Director Edward Armitage and Mark Osborne. Modrus provides Information Technology ("IT") managed services and telecoms solutions to SMEs, offering a comprehensive cloud service including virtual desktop, managed exchange and internet based telephony services ("VoIP") overlaid with full connectivity services. It also offers a full IT managed service package for customers including software, hardware and support. Modrus has approximately 140 managed service clients with the majority of revenue derived from clients ranging in size from approximately 50 to 250 users. Given the nature of Modrus' services, customers tend to be contracted for long periods (typically three years) and tend to renew contracts, providing a high level of revenue visibility, with current monthly recurring revenue carried forward amounting to approximately GBP468,000 per month.
Modrus has focused principally on direct sales to five key vertical sectors, being recruitment, professional services (comprising primarily financial services organisations and property services), media, private education and software vendors. Businesses in these verticals tend to rely heavily on their IT systems making them very suitable for outsourced IT solutions such as those provided by Modrus. Therefore, the acquisition of Modrus builds scale in the Group's Recruitment and Financial Services segments whilst adding complementary exposure to vertical markets in which the Group is not currently represented, including Media, Property Services and software vendors.
Modrus is headquartered in Bournemouth and currently employs 43 people in the UK and four in New Zealand. The New Zealand based employees provide a 24 hour help desk service to Modrus' clients, and is seen as a platform for growing the enlarged Group's out of hours support function on a lower cost basis than would be the case in the United Kingdom
The Directors have identified a number of areas in which they consider long term synergies can be achieved whilst the wider geographic footprint resulting from the acquisition will be helpful in terms of increasing the catchment area from which to recruit suitably qualified technical people in future.
Conclusion
The Board feels that Nasstar continues to deliver in line with its stated strategy. The latest acquisition combined with the enhanced marketing plan which has seen the re-launch of the Nasstar brand, continues to position the business to take advantage of the growth in adoption of cloud services.
The Group has a very tight focus on providing complex cloud based IT managed services with end to end offerings for specific vertical markets, giving Nasstar a clear differentiation from other cloud buy and build platforms, thus protecting against commoditisation. Success continues to be achieved by knowing our customers, harnessing fast moving technologies, inspiring our people and creating partnerships that truly enable the delivery of the very best solutions for the customer.
The combination of our five operating businesses has further diversified the customer base and increased the target market, thus contributing to our strong platform for continued growth which we believe will drive shareholder value.
Nigel Redwood
Chief Executive Officer
26 September 2016
Consolidated statement of Profit and Loss and other Comprehensive Income
Note 6 mths 6mths 12 mths
to 30 to 30 to 31
Jun 16 Jun 15 Dec 15
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Revenue 8,084 6,628 13,759
Cost of sales (2,436) (1,941) (4,085)
Gross profit 5,648 4,687 9,674
Administrative expenses (6,241) (5,071) (10,837)
--------------------------------------- ------- ---------------- --------------- --------
Share based payments (38) (101) (222)
Amortisation of customer
intangibles (1,474) (1,125) (2,424)
Other administrative expenses (4,729) (3,790) (7,893)
---------------- --------------- --------
Administrative expenses before
exceptional items (6,241) (5,016) (10,539)
Operating loss before exceptional
items (593) (329) (865)
Exceptional items 5 - (55) (298)
Operating loss (593) (384) (1,163)
Financial income - - 1
Financial expenses (177) (37) (134)
Loss before tax (770) (421) (1,296)
Taxation 6 286 59 987
Loss for the period and total
comprehensive income for the
period, attributable to shareholders (484) (362) (309)
================ =============== ========
Loss per share: 8
Basic (0.1p) (0.1p) (0.1p)
Diluted (0.1p) (0.1p) (0.1p)
Consolidated Statement of Financial Position
at 30 June 2016
30 Jun 30 Jun 31 Dec
Note 2016 2015 2015
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Non-current assets and liabilities
Goodwill 8,929 3,534 8,929
Intangible assets - computer
software 401 404 457
Intangible assets - customer
contracts 8,903 8,180 10,378
Plant and equipment 4,078 2,870 3,296
----------- ----------- ---------
22,311 14,988 23,060
Current assets
Inventories 29 17 10
Trade and other receivables 2,039 1,811 1,960
Cash and cash equivalents 1,375 1,146 1,579
3,443 2,974 3,549
Total assets 25,754 17,962 26,609
Non-current liabilities
Interest-bearing loans and
borrowings 4,509 333 4,943
Deferred taxation 1,207 1,752 1,493
5,716 2,085 6,436
Current liabilities
Interest-bearing loans and
borrowings 1,778 377 1,766
Trade and other payables 3,769 2,022 3,297
Provisions 9 - 86 -
5,447 2,485 5,063
Total liabilities 11,263 4,570 11,499
Net assets 14,491 13,392 15,110
Equity attributable to equity
holders of the parent
Share capital 3,849 3,664 3,849
Share premium 11,252 9,893 11,252
Merger reserve 4,737 4,737 4,737
Retained deficit (5,347) (4,902) (4,728)
Total equity 14,491 13,392 15,110
Consolidated Statement of Changes in Equity
Share Share Merger Retained Total
capital premium reserve deficit equity
GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 1 January
2015 3,664 12,718 4,737 (7,466) 13,653
-------- -------- -------- -------- -------
Comprehensive income
Loss for the year recognised
in profit and loss - - - (362) (362)
-------- -------- -------- -------- -------
Total comprehensive
income for the year - - - (362) (362)
Reduction of capital - (2,825) - 2,825 -
-------- -------- -------- -------- -------
At 30 June 2015 3,664 9,893 4,737 (4,902) 13,392
Comprehensive income
Loss for the period
recognised in profit
and loss - - - 53 53
-------- -------- -------- -------- -------
Total comprehensive
income for the period - - - 53 53
Shares issued in period 185 1,359 - - 1,544
Share based payment - - - 121 121
recognised in equity
-------- -------- -------- -------- -------
At 31 December 2015 3,849 11,252 4,737 (4,728) 15,110
Comprehensive income
Loss for the period
recognised in profit
and loss - - - (484) (484)
-------- -------- -------- -------- -------
Total comprehensive
income for the period - - - (484) (484)
Share based payment
recognised in equity - - - 38 38
Dividend (173)
-------- -------- -------- -------- -------
At 30 June 2016 3,849 11,252 4,737 (5,174) 14,664
======== ======== ======== ======== =======
Consolidated Statement of Cash Flows
6 mths to 30 Jun 16 6mths to 30 Jun 15 12 mths to 31 Dec 15
Unaudited Unaudited Audited
GBP000 GBP000 GBP000
Cash flows from operating
activities
Loss for the period (484) (362) (309)
Adjustments for:
Net finance charges 177 37 133
Taxation (286) (59) (987)
Depreciation and
amortisation 2,154 1,636 3,496
Share based payments 38 101 222
Corporation tax payments - (135) 135
Net cash flow from
operating activities
before changes in working
capital 1,599 1,218 2,690
Increase in inventories (19) (8) (1)
Increase in trade and other
receivables (79) (10) (8)
Increase / (decrease) in
trade and other payables 299 (293) (564)
Net cash from operating
activities 1,800 907 2,117
---------------------------- ---------------------------- ----------------------------
Cash flows from investing
activities
Acquisition of intangible
assets (61) (64) (141)
Acquisition of property,
plant and equipment (817) (295) (712)
Acquisition of subsidiary
undertakings, net of cash
acquired - - (5,763)
Net cash from investing
activities (878) (359) (6,616)
---------------------------- ---------------------------- ----------------------------
Cash flows from financing
activities
Bank finance raised - - 6,375
Cost of raising finance - - (187)
Repayment of lease finance
arrangements (310) (233) (486)
Repayment of bank loan (639) (40) (399)
Interest paid (177) (37) (134)
Interest received - - 1
Net cash from financing
activities (1,126) (310) 5,170
---------------------------- ---------------------------- ----------------------------
Net (decrease)/increase in
cash and cash equivalents (204) 238 671
Cash and cash equivalents
the beginning of the
period 1,579 908 908
Cash and cash equivalents
at the end of the period 1,375 1,146 1,579
============================ ============================ ============================
Notes to the interim statement
1. Corporate information
Nasstar plc ("the Company") is a company incorporated in England and Wales and quoted on the London Stock Exchange's Alternative Investment Market (NASA). Further copies of these results will be available at the Company's registered office: Datapoint House, 400 Queensway Business Park, Queensway, Telford, Shropshire, TF1 7UL or on the Company website at www.nasstar.com. These consolidated interim financial statements were approved by the Board of Directors on 21 September 2016.
2. Basis of preparation
These condensed interim financial statements of the Company and its subsidiaries ("the Group") for the 6 months ended 30 June 2016 have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRSs) as adopted by the European Union.
These consolidated interim financial statements of the Group are for the six months ended 30 June 2016. The comparative figures for the 12 month period ended 31 December 2015 are derived from the Group's statutory accounts for that financial period. Those statutory accounts have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditor was (i) unmodified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without modifying its report and (iii) did not contain a statement under Section 498 of the Companies Act 2006.
The condensed consolidated interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements as at 31 December 2015.
The condensed consolidated interim financial statements for the six months to 30 June 2016 have not been audited or reviewed by an auditor pursuant to the Auditing Practices Board guidance on Review of Interim Financial Information.
The condensed consolidated interim financial statements for the six months to 30 June 2016 have been prepared on the basis of the accounting policies expected to be adopted for the year ending 31 December 2016. These are anticipated to be consistent with those set out in the Group's latest annual financial statements for the year ended 31 December 2015. These accounting policies are drawn up in accordance with International Financial Reporting Standards, International Accounting Standards (IASs) and International Financial Reporting Interpretations Committee (IFRIC) interpretations (collectively IFRSs) as adopted for use in the European Union.
AIM-listed companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has taken advantage of this exemption.
Forward-looking statements:
This report may contain certain statements about the future outlook for Nasstar plc. Although the directors believe their expectations are based on reasonable assumptions, any statements about future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.
3. Segmental analysis
A segment is a distinguishable component of the Group that is engaged in providing products or services in a particular business sector (business segment) or in providing products or services in a particular economic environment (geographic segment), which is subject to risks and rewards that are different in those other segments.
The Group operated in the period in one segment, the provision of hosted managed services, and in one market, the United Kingdom. The disclosures required by IFRS8 relating to profits, losses, assets and liabilities of the segment are therefore shown by the financial statements as a whole.
4. Acquisitions
On 2 September 2016 the Group completed the acquisition of 100% of the issues share capital of Modrus Limited for GBP13.0m comprising GBP11.7m in cash and GBP1.3m in new Nasstar plc equity. The cash consideration was funded by a placing of 177,333,334 new ordinary shares to raise GBP13.3m at a price of 7.5p per ordinary share. Fair value calculations for this acquisition have not been completed due to the proximity of the acquisition to the date of these results and as such have not been disclosed.
5. Exceptional items
The following items are considered significant by virtue of their size and nature and therefore have been recognised as exceptional items during the period
6 mths to 30 Jun 16 6 mths to 30 Jun 15 12 mths to 31 Dec 15
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Acquisition costs - 20 257
Reorganisation costs - 35 41
- 55 298
Note acquisition costs in the six months to 30 June
2015 are in relation to an aborted transaction
6. Income tax credit
The income tax credit for the period is based on the estimated rate of corporation tax that is likely to be effective for the year to 31 December 2016.
7. Dividends
A maiden final dividend of 0.045p in respect of 2015 was paid on 4 July 2016 to shareholders on the register at the close of business on 3 June 2016.
8. Earnings per share Loss per share: Basic (0.1p) Diluted (0.1p)
The calculation of the basic loss per share for the six months ended 30 June 2016 is based upon the following.
6 mths 6 mths 12 mths
to 30 to 30 to 31
Jun 16 Jun 15 Dec 15
Unaudited Unaudited Audited
Weighted average no. of shares
in issue 384,875,619 366,444,447 370,686,141
(Loss) attributable to shareholders (GBP484,000) (GBP362,000) (GBP309,000)
of the parent
(Loss) per 1p ordinary share (0.1p) (0.1p) (0.1p)
The diluted loss per share for all periods is the same as the basic loss per share as the losses have an anti-dilutive effect.
9. Provisions
30 Jun 31 Dec
30 Jun 2015 2015
2016 Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Provision for loss making contracts - 86 -
10. Availability of audited and interim accounts
Copies of the 2015 audited accounts are available on the Company's website (http://www.nasstar.com/investors/financial-reports) for the purposes of AIM rule 26. Further copies of these interim results will be available at the Company's registered office: Datapoint House, 400 Queensway Business Park, Queensway, Telford, Shropshire, TF1 7UL or on the Company website at www.nasstar.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EANNLALPKEEF
(END) Dow Jones Newswires
September 26, 2016 02:00 ET (06:00 GMT)
1 Year Nasstar Chart |
1 Month Nasstar Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
