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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Ashton Penney | LSE:ASHT | London | Ordinary Share | GB00B0KDN652 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 0.15 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
RNS Number:5871R Ashton Penney Holdings PLC 21 February 2007 FOR IMMEDIATE RELEASE 21 February 2007 ASHTON PENNEY HOLDINGS PLC ("the Company") INTERIM RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2006 Chairman's Statement In my statement for the Annual Report dated 29 September 2006 I outlined our restructuring plan which, although slower to implement than anticipated, had placed your company on a stronger footing. I am pleased to report that five months later there has been a significant improvement in the performance of the company. Results The group's results for the six months ending 31 December 2006 show a loss of #60,195 (year ended 31 December 2005, a loss of #328,105) Revenue grew by 16% to #2,871,000 for the six months ended 31 December 2006 (2005: #2,478,000) The principal Key Performance Indicators for the six months ending 31 December 2006 compared with those of the same period in 2005 demonstrate the success of the plan to change the business model from dependence upon self employed consultants to a mix of employed and self employed consultants, thus improving margins. The directors believe this model will continue to result in a higher level of gross profit. In the period to 31 December 2006 the directors have also carried out a fundamental review of the support functions and overhead costs resulting in a reduction in these costs going forward. 2006 2005 2006 6 months ended 6 months ended 15 month period ended 31 December 31 December 30 June Gross margins % 29% 18% 18% % increase in number of active assignments 20% 0% 17% Our policy is to continue to target higher value business with an increasing level of repeat business from key clients. These are the first results that we have reported under IFRS and all numbers presented for comparative periods have been restated under IFRS. The changes resulting from the adoption of IFRS do not affect revenue recognition or the cash flows of the business. The primary areas of change are the change in treatment of goodwill, which is now subject to annual impairment reviews rather than amortisation; and the requirement to show a charge to profit for the share options granted to employees. Full explanation of the transition to IFRS is presented in the notes to the financial statements. During the period Renwick Haddow resigned as a Non Executive Director. Strategy & Outlook The Directors will continue to pursue their strategy of growing the business through providing a first class interim executive resourcing service for our clients, increasing the number of fee earning consultants, seeking opportunities to make synergistic acquisitions and developing compatible business activities that can exploit AshtonPenney's strong brand. James Wheeler, currently CEO, has decided that with the company's restructuring completed, his talents will now be best directed to managing AshtonPenney's increasingly complex and diverse existing and potential client relationships. At his request he has decided to step aside from his current role with immediate effect. James will remain on the board as an executive director. His role as CEO will be assumed by Bruce Page, currently Commercial Director, who has worked closely with James since joining the company some fourteen months ago and has more than thirty years' experience in executive recruitment and human capital consulting. The 'pipeline' of current opportunities is significantly greater than the comparative period in early 2006 across all sectors and executive disciplines and whilst the nature of our business makes it difficult to predict the longer term position, the Directors believe that the economic climate will remain positive for the sector and that the opportunities for the business to grow will continue. The company has continued to make good progress towards sustainable profitability and I am particularly grateful for the continuing efforts of everyone working for AshtonPenney. Graham Cole Chairman Date: 21 February 2007 Consolidated Interim Income Statement for the six months ended 31 December 2006 2006 2005 2006 6 Months to 6 Months to 15 month period ended 31 December 31 December 30 June Unaudited Unaudited* Unaudited Note #'000 #'000 #'000 Revenue 1 2,871 2,478 5,513 Cost of sales (2,034) (2,032) (4,497) Gross profit 837 446 1,016 Operating expenses 5 (882) (754) (2,234) Operating loss before financing costs (45) (308) (1,218) Financial income - 2 4 Financial expenses (15) (22) (35) Net financing costs (15) (20) (31) Loss before tax (60) (328) (1,249) Taxation - - - Loss for the financial period (60) (328) (1,249) Earnings per share 3 Basic (0.18p) (1.08p) (4.20p) Diluted (0.18p) (1.08p) (4.20p) * The loss for the 9 month period ended 31 December 2005 was #589,000 Consolidated Statement of changes in equity as at 31 December 2006 Share Capital Share Capital Total Profit and Loss Share Premium Ordinary Deferred Equity account account shares of shares of #0.01 #0.001 #'000 #'000 #'000 #'000 #'000 Unaudited Unaudited Unaudited Unaudited Unaudited As at 1 April 2005 (2,589) 263 27 2,206 (93) Loss for the period 1 April - 30 June 2005 (261) - - - (261) Loss for the 6mth period to 31 December 2005 (328) - - - (328) Cost of share based payments 1 - - - 1 Shares issued - 1,532 309 - 1,841 Less issue costs - (308) - - (308) As at 31 Dec 2005 (3,177) 1,487 336 2,206 852 Loss for the 6mth period to 30 June 2006 (660) - - - (660) Cost of share based payments 21 - - - 21 As at 30 June 2006 (3,816) 1,487 336 2,206 213 Loss for the 6mth period to 31 December 2006 (60) - - - (60) Cost of share based payments 21 - - - 21 Shares issued - 80 20 - 100 As at 31 December 2006 (3,855) 1,567 356 2,206 274 Consolidated Interim Balance Sheet as at 31 December 2006 2006 2005 2006 31 December 31 December 30 June Unaudited Unaudited Unaudited Note #'000 #'000 #'000 Assets Intangible assets 5 - Goodwill 911 911 911 - Trademarks and databases 165 185 175 1,076 1,096 1,086 Tangible assets 5 136 173 125 Total non-current assets 1,212 1,269 1,211 Trade receivables 1,031 598 785 Cash 49 125 11 Total current assets 1,080 723 796 Total assets 2,292 1,992 2,007 Equity Issued capital 2 2,562 2,542 2,542 Share premium 1,567 1,487 1,487 Retained earnings (3,855) (3,177) (3,816) Total equity 274 852 213 Liabilities Interest - bearing loans 106 106 106 Finance leases 48 - 109 Total non-current liabilities 154 106 215 Bank loans 596 381 438 Trade payables 1,208 653 1,141 Other loans 60 - - Total current liabilities 1,864 1,034 1,579 Total liabilities 2,018 1,140 1,794 Total equity and liabilities 2,292 1,992 2,007 Consolidated Interim statement of Cash Flows for the six months ended 31 December 2006. 2006 2005 2006 6 Months to 6 Months to 15 month period ended 31 December 31 December 30 June Unaudited Unaudited Unaudited #'000 #'000 #'000 Cash flows from operating activities Cash receipts from customers 2,997 3,086 7,013 Cash paid to suppliers and employees (3,070) (3,518) (7,869) Cash generated from operations (73) (432) (856) Interest Paid (15) (22) (29) Net cash from operating activities (88) (454) (885) Cash flows from investing activities Interest received - 2 4 Payments to acquire tangible fixed assets (25) (139) (39) Acquisition of shares in group undertakings - - (200) Net cash acquired with subsidiaries - - (278) Net cash from investing activities (25) (137) (513) Cash flows from financing activities Issue of ordinary share capital 100 822 1,208 Expenses paid in connection with share issues - - (16) New short term loans received 60 100 100 Capital element of finance lease repayments (9) - (13) Payment of transaction costs - (308) (308) Net cash from financing activities 151 614 971 Net increase in cash and cash equivalents 38 23 (427) Cash and cash equivalents at 01 Jan/ 01 July 11 102 438 Cash and cash equivalents 49 125 11 at 31 December/30 June Notes to the Accounts for the six months ended 31 December 2006 1. Significant accounting policies Ashton Penney Holdings plc (the "Company") is a company domiciled in England and whose registered office address is 81 - 82 Gracechurch Street, London, EC3V 0AU. The condensed consolidated interim financial statements of the Company for the six months ended 31 December 2006 comprise the Company and its subsidiaries (together referred to as the "Group"). The condensed consolidated interim financial statements do not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the 15 month period ended 30 June 2006 has been extracted from the statutory accounts for that period. The auditors' report on these statutory accounts was unqualified and did not contain a statement under section 237 of the Companies Act 1985. A copy of these financial statements has been filed with the Registrar of Companies. The Group's date of transition to IFRS was 1 April 2005 and the condensed consolidated interim financial statements have been prepared in accordance with the first time adoption provisions set out in IFRS 1 First-time Adoption of International Financial Reporting Standards. The condensed consolidated interim financial statements do not include all of the information required for full annual financial statements. The condensed consolidated interim financial statements were authorised for issuance on 21 February 2007 1.1 Statement of compliance The interim accounts to 31 December 2006 and 31 December 2005 are unaudited and have been prepared in accordance with International Financial Reporting Standards (IFRSs) for interim financial statements adopted by the EU, and those parts of the Companies Act 1985 applicable to companies reporting under IFRS. An explanation of how the transition to IFRSs has affected the reported financial position, financial performance and cash flows of the Group is provided in note 5. This note includes reconciliations of equity and profit or loss for comparative periods reported under UK GAAP (previously GAAP) to those reported for those periods under IFRSs. 1.2 Basis of preparation The financial statements are prepared on the historical cost basis. The preparation of interim financial statements in conformity with IAS 34 Interim Financial Reporting requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The condensed consolidated interim financial statements have been prepared on the basis of IFRSs in issue that are effective or available for early adoption at the Group's first IFRS annual reporting date, 30 June 2007. Based on these IFRSs, the Board of Directors have made assumptions about the accounting policies expected to be adopted (accounting policies) when the first IFRS annual financial statements are prepared for the year ending 30 June 2007. The IFRSs that will be effective or available for voluntary early adoption in the interim financial statements for the period ended 31 December 2006 are still subject to change and to the issue of additional interpretation(s) and therefore cannot be determined with certainty. Accordingly, the accounting policies for that annual period that are relevant to this interim financial information will be determined only when the first IFRS financial statements are prepared as at 30 June 2007. The accounting policies set out below have been applied consistently to all periods presented in these condensed consolidated interim financial statements. They also have been applied in preparing an opening IFRS balance sheet at 1 April 2005 for the purposes of the transition to IFRSs, as required by IFRS 1. 1.3 Basis of consolidation Subsidiaries Subsidiaries are entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of subsidiaries are included in the condensed consolidated interim financial statements from the date that control commences until the date that control ceases. The purchase method of accounting is used for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the subsidiary acquired, the difference is recognised directly in the income statement. Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. 1.4 Property, plant and equipment Property, plant and equipment are stated at cost less depreciation. Depreciation is charged to profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. The estimated useful lives are as follows:- * Leasehold improvements 5 years * Fixtures and fittings 5 years * Computer equipment 3 years The carrying value of tangible fixed assets is reviewed for impairment annually when events or changes of circumstances indicate the carrying value may not be recoverable. 1.5 Intangible assets (a) Goodwill Goodwill represents the excess of the costs of an acquisition over the fair value of the Group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisition of subsidiaries is included in 'intangible assets'. Separately recognised goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Impairment losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is allocated to cash-generating units and is tested at least annually for impairment or more frequently when there is an indication that the cash-generating unit may be impaired. Goodwill was tested for impairment at 1 April 2005, the date of transition to IFRSs, even though no indication of impairment existed. (b) Trademarks, licences and databases Acquired trademarks, licences and databases are shown at historical cost. Trademarks licences and databases have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight line method to allocate the cost of trademarks, licences and databases over their estimated useful lives (10 years) 1.6 Employee benefits Share-based payment transactions The EMI share option scheme allows the Group to award employees with equity settled share based payments in respect of options over Ordinary Shares of 1p each of the Company. IFRS2 has been applied to all share based payments made by the Group, none of which were granted prior to 7 November 2002. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using a binomial lattice model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest except where forfeiture is only due to share prices not achieving the threshold for vesting. 1.7 Revenue Services rendered The revenue shown in the profit and loss account represents the value of services provided during the period, stated net of value added tax and typically arises from the provision of interim managers. Revenue is recognised at the contractual rate agreed for actual days worked. 1.8 Expenses Operating lease payments Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense. Finance lease payments Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. 2. Capital and reserves Share capital and share premium The Group recorded the following amounts within shareholders' equity as a result of the issuance of ordinary shares. Authorised share capital 31 December 2006 31 December 2005 30 June 2006 # # # 600,000,000 ordinary shares of 1p each 6,000,000 6,000,000 6,000,000 4,000,000,000 deferred shares of 0.1p each 4,000,000 4,000,000 4,000,000 Allotted, called up and fully paid Nos Nos Nos Ordinary shares of 1p each 35,606,125 33,606,125 33,606,125 Deferred shares of 0.1p each 2,206,110,131 2,206,110,131 2,206,110,131 #'000 #'000 #'000 Ordinary shares of 1p each 356 336 336 Deferred shares of 0.1p each 2,206 2,206 2,206 Total 2,562 2,542 2,542 On 5 December 2006 the company issued 2,000,000 ordinary shares of 1p for an aggregate consideration of #100,000. 3. Earnings per share Basic earnings per share The calculation of basic earnings per share for the six months ended 31 December 2006 was based on the loss attributable to ordinary shareholders of #60,195 (six months ended 31 December 2005: #328,105) and a weighted average number of ordinary shares outstanding during the six months ended 31 December 2006 of 33,899,602 (six months ended 31 December 2005 : 30,271,895) The employee share options are non dilutive as the current price is below the exercise price. 4. Share-based payments At 1 January 2006, the Group had established a share option programme that enabled key management personnel and senior employees to be granted shares in the entity. The terms and conditions of the share option programme and grants made from the date of commencement of the scheme up to the period ended 31 December 2006 are set out below. Exercise prices are based on the market price of the shares at date of grant and are agreed with HM Revenue & Customs. The terms and conditions of the grants made from the date of commencement of the scheme up to the period ended 31 December 2006 are as follows; all option exercises are settled by physical delivery of shares: Average exercise price in # Vesting period and per share conditions At 1 April 2005 - - Granted 250,000 0.0800 3 years of service At 1 January 2006 250,000 0.0800 Granted 710,000 0.0775 3 years of service At 30 June 2006 960,000 0.0782 Granted - - At 31 December 2006 960,000 0.0782 All share options granted vest after 3 years and there are no conditions applying other than the individual must still be in the Group's employment at vesting date The fair values of services received in return for share options granted to employees are measured by reference to the fair value of share options granted. The estimate of the fair value of the services received is measured based on a binomial lattice model. The contractual life of the option (10 years) is used as an input into this model. Expectations of early exercise are incorporated into the binomial lattice model. Fair value of share options and assumptions For the six months ended 31 December 2006 2006 Fair value at measurement date 13p Share price at grant date 8p Exercise price 8p Number of employees 3 Vesting period 3 years Shares under option 960,000 Grant dates 2005/2006 Expected volatility (expressed as weighted average volatility used in the modelling under binomial lattice model) 50% Option life (expressed as weighted average life used in the modelling 4 years under binomial lattice model) Expected dividends nil Risk-free interest rate (based on national government bonds) 4.18 The expected volatility is based on the historic volatility (calculated based on the weighted average remaining life of the share options), adjusted for any expected changes to future volatility due to publicly available information. There are no market conditions associated with the share option grants. 5. Explanation of transition to IFRSs As stated in note 1, these are the Group's first condensed consolidated interim financial statements for part of the period covered by the first IFRS annual consolidated financial statements prepared in accordance with IFRSs. The accounting policies in note 1 have been applied in preparing the condensed consolidated interim financial statements for the six months ended 31 December 2006, the financial statements for the period ended 30 June 2006 and the preparation of an opening IFRS balance sheet at 1 April 2005 (the Group's date of transition). In preparing its opening IFRS balance sheet, comparative information for the six months ended 31 December 2005 and financial statements for the period ended 30 June 2006, the Group has adjusted amounts reported previously in financial statements prepared in accordance with previous GAAP. An explanation of how the transition from previous GAAP to IFRSs has affected the Group's financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables. Reconciliation of balance sheet Effect of Effect of transition to transition to Previous IFRSs IFRSs Previous IFRSs IFRSs GAAP 01 April 2005 GAAP 30 June 2006 Unaudited Unaudited Audited Unaudited Note #'000 #'000 #'000 #'000 #'000 #'000 Fixed Assets Goodwill 5(a) - - - 981 (200) 5(a) 130 911 Other intangible assets Fixed assets - - - 125 - 125 Intangible Assets 5(a) 200 5(a) (25) 175 _______ _______ _______ _______ _______ _______ Total non-current assets - - - 1,106 105 1,211 _______ _______ _______ _______ _______ _______ Current Assets Trade receivables 0 0 0 785 0 785 Cash at Bank 0 0 0 11 0 11 _______ _______ _______ _______ _______ _______ Total current assets 0 0 0 796 0 796 _______ _______ _______ _______ _______ _______ Total assets 0 0 0 1,902 105 2,007 _______ _______ _______ _______ _______ _______ Equity Issued capital 2,233 0 2,233 2,542 0 2,542 Share premium 263 0 263 1,487 0 1,487 Profit and Loss Account 5(a) (2,589) 0 (2,589) (3,921) 105 (3,816) _______ _______ _______ _______ _______ _______ Total equity (93) 0 (93) 108 105 213 _______ _______ _______ _______ _______ _______ Interest bearing loans 0 0 0 106 0 106 Finance leases 0 0 0 108 0 109 _______ _______ _______ _______ _______ _______ Total non-current liabilities 0 0 0 214 0 215 _______ _______ _______ _______ _______ _______ Liabilities Bank loans 0 0 0 438 0 438 Trade payables 93 0 93 1,142 0 1,141 Other Loans 0 0 0 0 0 0 _______ _______ _______ _______ _______ _______ Total current liabilities 93 0 93 1,580 0 1,579 _______ _______ _______ _______ _______ _______ Total liabilities 93 0 93 1,794 0 1,794 _______ _______ _______ _______ _______ _______ Total equity and liabilities 0 0 0 1,902 105 2,007 _______ _______ _______ _______ _______ _______ Reconciliation of profit and loss account Effect of Effect of Previous transition to Previous transition to GAAP IFRSs IFRSs GAAP IFRSs IFRSs 2005 2006 to 6 Months 2005 to 15 months 30 June 2006 31 December Unaudited Unaudited Audited Unaudited Note #'000 #'000 #'000 #'000 #'000 #'000 Revenue 2,478 - 2,478 5,513 - 5,513 Cost of sales (2,032) - (2,032) (4,497) - (4,497) Gross profit 446 - 446 1,016 - 1,016 Operating expenses (815) 61 (754) (2,317) 83 (2,234) Amortisation of Goodwill written back 5(a) 77 130 Amortisation of Intangibles 5(a) (15) (25) Cost of share based payments 5(b) (1) (22) Operating loss before financing costs (369) 61 (308) (1,301) 83 (1,218) Financial income 2 - 2 4 - 4 Financial expenses (22) - (22) (35) - (35) Net financing costs (20) - (20) (31) - (31) Loss for the financial period (389) 61 (328) (1,332) 83 (1,249) Deficit transferred to retained earning (389) 61 (328) (1,332) 83 (1,249) Earnings per share (1.29p) 0.20p (1.08p) (4.45p) 0.28p (4.20p) Notes to the reconciliation (a) Goodwill The Group has applied IFRS 3 to all business combinations that have occurred since 1 April 2005 (the date of transition to IFRS). UK GAAP required intangible assets other than goodwill to be separable from the business acquired to qualify for separate recognition. IFRSs require all intangible assets arising from legal or contractual rights to be recognised separately if their fair value can be established reliably regardless of whether the asset is separable. Accordingly the Group has revised the measurement of certain assets to fair value at the date of the business combination in which they were acquired. Additionally, goodwill on re-stated business combinations is not amortised under IFRSs, but is tested annually for impairment. Previously amounts amortised in respect of goodwill totalling #130,000 have been written back to reserves. Intangible Assets The effect is to increase other intangible fixed assets by #200,000 at 31 December 2005 and 30 June 2006. The policy for amortising this asset is to write it off over 10 years. A charge of #15,000 has been made to the Profit & Loss Account in respect of amortisation up to 31 December 2005; a charge of #10,000 has been made in respect of the six months to 30 June 2006. (b) The Group has applied IFRS2 to its share-based payment arrangements at 31 December 2005 and 30 June 2006. The scheme came into being in October 2005 and the first options were awarded at that time. UK GAAP only requires a charge to be measured where the exercise price is lower than the market price at date of grant. IFRSs requires a charge to be measured based on the fair value of the option granted The effect of accounting for employee share options at fair value is to increase staff costs by #1,000 for the six month period ended 31 December 2005 and by #21,000 for the 15 month period ended 30 June 2006. Copies of this statement are being sent to all shareholders and are available to the public on request from the Company's registered office at 81-82 Gracechurch Street, London EC3V 0AU and on the company's website: www.ashtonpenney.com Contact: Ashton Penney Holdings Plc Bruce Page Tel: +44 (0)20 7337 6900 Beaumont Cornish Limited Roland Cornish Tel: +44 (0)20 7628 3396. This information is provided by RNS The company news service from the London Stock Exchange END IR ILFSDFAIIFID
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